It has been established that Yang Jun and Cao Zhen, two students of computer science in Chongqing, established the company Golden Cinema and separately rented the domain names vod8.cn and haokan.cn, as well as servers in Zhengzhou and Shanghai.

Since January 2004, they began to show pornographic films to registered members who paid via bank transfer or SMS. By July 2004, when their actions were discovered, they had in total provided 20 such films and respectively earned CNY80000 and CNY40000.

The court ruled that the two had broken the relevant clauses of the Chinese Criminal Law for spreading pornographic material and sentenced Yan Jun to seven years' imprisonment and a fine of CNY10000, and Cao Zhen to four years' imprisonment and a fine of CNY5000.