Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

20.          Commitments and Contingencies

The Company has employment agreements with certain employees that provide severance payments upon termination of employment under certain circumstances, as defined in the applicable agreements. As of December 31, 2011, the Company's potential minimum cash obligation to these employees was approximately $810,000.

The Company is committed to paying leased property costs related to our Sinotop office during 2012, 2013, 2014 and 2015 in the amounts of RMB 2,378,299 (USD 374,035), RMB 2,134,244 (USD 335,652), RMB360,000 (USD55,617) and RMB120,000 (USD18,872), respectively.

The Company is committed to paying product related costs during 2012, 2013, 2014, and 2015 in the amounts of RMB 1,462,511 (USD 230,009), RMB 2,925,022 (USD 460,018), RMB 5,850,044 (USD 920,035), and RMB 5,850,044 (USD 920,035), respectively.

According to the purchase agreement with “Shandong Fu Ren”, Zhong Hai Video was obligated to pay RMB 1,000,000 (USD 157,270) to acquire 51% ownership of Shanghai Tianduo, of which RMB 700,000 (USD 110,089) remains.

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business.  However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.  We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.