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Following is a question by the Hon Vincent Fang and a reply by the Secretary for Commerce and Economic Development, Mrs Rita Lau, in the Legislative Council today (February 3):
Question:
I have separately received requests for assistance from manufacturers, importers, wholesalers and retailers of various goods, who pointed out that the types and numbers of counterfeit goods sold on the market are on the increase. In this connection, will the Government inform this Council:
(a) of the number of cases of counterfeit goods being seized by the Customs and Excise Department in the past three years, the types of counterfeited goods seized, the number of persons convicted, and the maximum penalty imposed on them;
(b) whether there are, apart from the Customs and Excise Department, other government departments which are responsible for investigating if the goods sold on the market are "No Fakes"; if so, of the circumstances under which such government departments will take enforcement actions; and
(c) whether the Government will step up measures to ensure that the goods sold on the market are "No Fakes"; whether the Government has any plan to commit more resources to enhance publicity that the goods sold in Hong Kong are genuine, so as to safeguard Hong Kong's reputation as a "Shoppers' Paradise"?
Reply:
President,
The Government is committed to protecting brands, in the interest of safeguarding the rights of consumers and trade mark owners. We have adopted a multi-pronged approach in endeavouring to ensure that goods sold in the market are not fake, including law enforcement, publicity and public education, and co-operation with the trade mark owners.
Law Enforcement
Under the Trade Descriptions Ordinance, any person who imports, exports, sells or manufactures goods bearing forged trade marks commits an offence. The maximum penalty is a fine of $500,000 and imprisonment for 5 years.
The Customs and Excise Department ("C&ED") takes rigorous action against the sale, distribution, storage, manufacture, import and export of counterfeit goods. In discharging its enforcement responsibilities, C&ED proactively patrols known black spots where counterfeit goods are sold, apart from acting on reports made by trade mark owners and the public.
Publicity and Public Education
The Intellectual Property Department ("IPD") spends about $8 million annually on various publicity and public education activities to promote public awareness of and respect for intellectual property rights ("IPR"). IPD collaborated with a number of retailer associations to launch the "No Fakes Pledge" Scheme in 1998, advocating honest and proper business practice including a pledge not to sell counterfeit goods. Different channels have been used to publicise the Scheme among tourists and consumers. The Consumer Council has also been launching related publicity and public education activities, disseminating information and messages pertaining to counterfeit goods and parallel imported products. To help them better understand Hong Kong's retail market, the Consumer Council has promulgated a "shop smart" website for tourists (「精明消費香港遊」). The website provides readers with practical tips, including what tourists should watch out for when shopping (such as advice on the choice of shops; features differentiating counterfeits from genuine products; and parallel imported goods in circulation etc); information about the distributors of popular consumer items; relevant consumer protection laws and measures; and channels for making complaints.
Co-operation with the industry
C&ED fortified its collaboration with trade mark owners and other IPR stakeholders through the Intellectual Property Rights Protection Alliance established in 2004. Regular working meetings have since been held to map out effective strategies against infringing activities, as well as joint efforts in launching publicity and public education programmes. The Alliance helps enhance the industry's involvement in the fight against IPR infringement and in promoting public awareness of IPR. Riding on its close liaison with the industry, C&ED gathers intelligence on infringing activities and offers reward schemes that encourage the public to help C&ED detect and suppress illegal activities involving counterfeits.
With regard to parts (a) to (c) of the question, our reply is as follows:
(a) In the past three years, C&ED has acted on a total of 2 834 cases that are related to counterfeit goods. The counterfeit items seized include clothing, leather goods, watches and parts, pharmaceutical products, and electrical, electronic and computer products, etc. Altogether 1 385 cases have been prosecuted in these three years, involving 1 696 persons. Among the 1 263 convicted cases, 1 398 persons were sentenced. The heaviest fine awarded amounts to $475,000 while the highest sentence is imprisonment for 24 months.
Relevant statistics showing the number of cases acted on; the number of persons arrested; the type, quantity and value of counterfeit goods seized; and the prosecution figures are tabulated in the Annex.
(b) C&ED is the principal enforcement agency for combating the sale of counterfeit goods. Other government departments, including the Hong Kong Police Force, the Department of Health, the Food and Environmental Hygiene Department, also co-operate with C&ED in fighting counterfeiting activities. When the departments come across any suspected illicit activities that involve counterfeit goods, they will promptly notify C&ED for action. They also conduct joint enforcement operations with C&ED, where appropriate.
Such joint enforcement operations had brought about synergy.
(c) The multi-pronged approach that I had mentioned has been generally effective. The sale of counterfeit goods is by and large under control.
Through pursuing flexible strategies and measures, the Government will continue to take actions to safeguard Hong Kong's reputation as a "Shoppers' Paradise" and enhance consumer confidence. We will review the situation from time to time, and re-deploy or inject additional resources where necessary, with a view to maintaining the efficacy of our measures.
Ends/Wednesday, February 3, 2010
Issued at HKT 16:06
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