The move, expected by the end of summer, will generate more than $1 billion (U.S.) in new orders for adult videos each year, according to trade journal Digitimes.
Digitimes said that many Taiwanese DVD manufacturers are planning to shift their production lines of CD-R and DVD+R/-R discs to making pre-recorded adult videos once the ban is lifted.
Taiwan laws on pornography are broad, but most prosecutions have targeted sellers of gay and lesbian erotic content. Article 235 of Taiwan’s criminal code states, "A person who distributes, sells, publicly displays, or by other means shows to another person in an indecent writing, drawing, or other [work] shall be punished."
The government’s pending approval of allowing adult DVD duplication for export is in response to an excelling manufacturing business in China and Hong Kong.
Some Taiwanese manufacturers have illicitly duped tapes in small volumes for years, Digitimes said.
