China's copyright watchdog has announced new strict rules on music streaming. Domestic online streaming service providers have been given until the end of the month to remove unlicensed music. Those that do not follow the order will be punished severely.

Industry insiders believe that the ban will restore confidence in the copyright system and attract more talent back to the music industry.

The National Copyright Administration, or NCA, has released a new edict that bans domestic online music streaming services from providing unlicensed free music to users by the end of July.

Duan Yuping, an official with the NCA says copyright infringement is widespread in the country.

"We found that virtually all online streaming service providers have committed copyright infringement in various degrees. They infringed the rights of royalty holders, disturbed the order of the online music market, and also impacted the development of our music industry. Therefore, the NCA decided to set stricter management of music websites as a top priority of the anti-piracy campaign named Sword Net 2015."

Yu Cike, head of the copyright management department with the NCA, warns that those who do not follow the order will be seriously punished

"After the end of July, we will seriously punish those who do not remove unlicensed music. Websites and apps that commit copyright infringement will be fined. Runners of illegal websites and apps specializing in music piracy will be referred to judicial authorities if they violate the law. "

Zang Yanbin, an industry insider says he believes that the new edict will help revive China's music industry.

"We believe that the new edict will restore confidence in the copyright system, attract more talents into the music industry to create more quality products. Medium-sized and small brands are more concerned about this edict, since large companies have established solid cooperation with domestic streaming services. Small brands and independent producers tend to be the main victims of music piracy. "

A final payment plan for legal internet music downloads from music streaming sites is said to be in the pipeline in the coming months.