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Following is a question by the Hon Leung Yiu-chung and a written reply by the Secretary for Economic Development and Labour, Mr Stephen Ip (in the absence of Secretary for Commerce, Industry and Technology), in the Legislative Council today (November 2):
Question:
The Customs and Excise Department recently found for the first time the selling of counterfeit jewellery by a shop participating in the "No Fakes Pledge" Scheme. In this connection, will the Government inform this Council:
(a) of the number of complaint cases in the past three years alleging the selling of counterfeit goods by shops participating in the Scheme, and the number of shops whose membership of the Scheme was terminated for non-compliance with the code of the Scheme; and
(b) whether actions will be taken regularly to ascertain that the shops participating in the Scheme sell genuine goods only, so as to protect the interests of consumers; if so, of the details; if not, the reasons for that?
Reply:
Madam President,
The "No Fakes Pledge" Scheme (the Scheme) was launched in 1998 by the Intellectual Property Department (IPD), together with other organisers including the Hong Kong Record Merchants Association, the Hong Kong Retail Management Association and the Hong Kong General Chamber of Commerce. Thereafter, the Hong Kong Tourism Board, the Hong Kong & Kowloon Electrical Appliances Merchants' Association Limited, the Hong Kong General Chamber of Pharmacy Limited, the Chamber of Hong Kong Computer Industry and the Travel Industry Council of Hong Kong have also become supporting organisations of the Scheme. The Scheme aims to encourage retailers to make pledges to sell genuine goods and to enhance retailers and consumers awareness of intellectual property protection.
In the past three years, we received three complaints concerning member companies of the Scheme suspected of selling counterfeit goods. The membership of one company was terminated. Of the other two cases, follow-up actions revealed that one was unfounded and one is still being investigated.
Under the code of ethics of the Scheme, participating companies are required to let Customs & Excise Department (C&ED) officers conduct inspection of their premises. Through effective partnership with copyright and trademark owners and their trade associations, C&ED maintains close surveillance over suspected counterfeiting and piracy activities in the market. It will take swift actions against any shops suspected of selling counterfeit and pirated goods. This enforcement mechanism has been working effectively and we have no plan at this stage to conduct regular inspection of companies participating in the Scheme.
In the light of the recent termination of the membership of a jewellery company participating in the Scheme and suspected of selling counterfeit goods, IPD together with other organisers and supporting organisations (concerned organisations) are now reviewing the operation of the Scheme to enhance consumers' confidence in the Scheme. The code of ethics of the Scheme has recently been updated so that IPD and other concerned organisations may suspend or terminate a member company's membership immediately if there are reasons to believe that the member company has failed to comply with the code of ethics or if there is any action taken against it by C&ED. The updated code of ethics has become effective for all retail merchants newly joining the Scheme and will gradually apply to existing member companies. IPD will further discuss with other concerned organisations to explore other ways to improve the Scheme, including the possibility of immediate disclosure of the names of any member companies suspected of having breached the code of ethics of the Scheme and whose membership has been terminated; and strengthening the criteria for vetting applications for joining the Scheme or renewal of membership.
Ends/Wednesday, November 2, 2005
Issued at HKT 12:47
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