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would be no point in doing so if they were competitive instead of

complementary.

12.

A number of companies in the Rediffusion Group act as

broadcasters as well as relay operators. The programmes which these

companies provide are not broadcast through the ether but distributed

to subscribers over a network of cables in exactly the same way as the

wireless programmes which they relay. This dual function may be the

cause of some of the confusion. In Hong Kong, for example, the

company concerned Rediffusion (Hong Kong) Limited ("the Company") uses

its networks in a limited way to relay the programmes of Radio Hong Kong

and Hong Kong Commercial Broadcasts Limited. Such relays have never

been questioned or criticised by the broadcasters concerned.

Company itself originates programmes and distributes these over its

cables to its subscribers just as a wireless station originates programmes

and transmits them through the ether. The only difference is the means

of transmitting the signals to the public.

But the

1. It cannot be too strongly emphasised that the provision of the

Company's own programmes over the wires is not a relay operation.

It is,

in fact, a broadcasting operation and is quite separate and completely

distinct from the relay function.

ly, The relay operator neither misappropriates a broadcaster's

programmes nor does he attract to himself any part of the revenue which a

broadcaster might expect to receive. He may indeed help to increase the

broadcaster's revenue, usually derived from licence fees or advertising,

by providing facilities enabling some members of the public to receive

programmes which might not be receivable by wireless means, thus adding

to the number of listeners and viewers, and thus increasing the revenue

from licence fees or advertisements.

15. It is also important to note that, in countries such as the

United States of America, Canada and the United Kingdom no broadcaster has

claimed a copyright fee in respect of the relay of his programmes.

4.

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