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Following is a speech by the Secretary for Commerce and Industry, Mr CHAU Tak Hay, at a press conference on Intellectual Property (Miscellaneous Amendments) Ordinance 2000 today (March 26) (Translation):
The Intellectual Property (Miscellaneous Amendments) Ordinance 2000 (the Ordinance) will shortly commence on April 1. My colleagues and I would like to brief you on the background and the contents of the Ordinance. We would also like to appeal to the business community as well as the public to prepare themselves for complying with the Ordinance.
Recently, a few press reports have alleged that the new Ordinance is implemented hastily with insufficient time being given to the business community to make preparation. In fact, the Ordinance was introduced only after a long period of gestation. It was passed by the Legislative Council (LegCo) unanimously last June, and will commence on April 1, 2001 after wide publicity. I wish to elaborate a bit more on the background.
When I met the press in May 1998 on the issue of protecting intellectual property rights, I indicated that the Government was considering a series of new measures to combat piracy activities. In February 1999, the Government consulted the public and LegCo on additional legal tools to combat intellectual property right infringement. After more than two months' consultation, the Government decided to proceed with three proposals that were supported by the public and LegCo. One of these proposals is to specify certain piracy and counterfeiting offences under the Organised and Serious Crimes Ordinance, which was implemented in January 2000. The new Ordinance implements the other two proposals. The relevant Bill was introduced into LegCo in January last year. After being scrutinised by a Bills Committee, it was passed in June.
To ensure that the public and business community are well aware of the new offences, the Government has been publicising them widely through various channels since last year. These include making announcements over television and radio, putting up posters, distributing pamphlets, organising talks for business corporations and SMEs, and disseminating relevant information via newspapers, magazines, the Internet and letters. We have also mailed a set of frequently asked questions and answers together with other publicity materials to business associations, urging them to relay the message to their members. As we need to conduct wide publicity, we have set April 1, 2001 as the commencement date even though the Ordinance was enacted last June.
The Ordinance has two objectives:
First, to combat corporate copyright piracy activities; and
Second, to prevent bootlegging of copyright works in cinemas, theatres and concert halls.
Combating Corporate Copyright Piracy
On combating corporate copyright piracy, it is widely known that the use of copyright infringing products in business is a serious problem in Hong Kong. According to an unofficial estimate, about 50 per cent of computer software used in business is pirated. Such a wide degree of infringement activities has not only significantly affected the legitimate interests of copyright owners, but it has also discouraged innovation and investments, and tarnished the international image of Hong Kong.
As we enter the age of knowledge-based economy in the 21st century, Hong Kong enterprises have increasingly employed knowledge, technology or innovative ideas to enhance the competitiveness of their products or services. The implementation of the Ordinance will promote the development of our local knowledge-based enterprises. Indeed, many local businessmen have bitter experience with copyright piracy activities. Many have invested significant sums of money with no return because their innovative products were copied. Enhancing the protection of intellectual property rights will also help attract foreign enterprises to invest in Hong Kong, which will in turn contribute to our long-term economic development and create more job opportunities.
Preventing Bootlegging
The other objective of the new law is to prevent bootlegging of copyright works. In the past, unlawful elements have made unauthorized recordings in cinemas to make pirated optical discs for sale. It is difficult to adduce evidence in proving a person for bootlegging under the existing law. As such, the Government has decided to amend the Prevention of Copyright Piracy Ordinance by prohibiting the possession by any person, without lawful authority or reasonable excuse, of video recording equipment in a place of public entertainment used primarily as a cinema, theatre or concert hall.
I am glad to know that the Hong Kong Theatres Association and other establishments concerned will take measures to facilitate the implementation of the new law by providing patrons with facilities to store their video recording equipment.
I would now like to invite Mr Stephen Selby, the Director of Intellectual Property, to explain further details of the new law. After that, Mr John Tsang, the Commissioner of Customs and Excise, will brief you on the enforcement arrangements.
End/Monday, March 26, 2001
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