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NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

CONFIDENTIAL

set, RTV would save those subscribers

who wish to receive both channels the

expense of having two receiving sets.

This could have an appreciable adverse

effect on the use of wireless receivers

(and thus on the interests of TVB)

whilst it would at the same time enhance

the value of RTV's service and its

revenue from subscribers.

26. These disadvantages for TVB are on

their own perhaps not very strong

arguments for extending copyright

protection to its programmes. The

main argument is surely that by

allowing RTV a free hand to relay TVB's programmes, without consent or payment, and so to bring both channels into the

homes of viewers through a single

receiving set, a strong commercial

advantage has been placed in RTV's

hands vis-a-vis its competitor. Its

commercial position is strengthened in

two ways:-

(a) the advantages of the wired

system have been increased and

the system should be in greater

demand;

(b) to the extent that this is so,

RTV's own programme is enabled

to enter more homes and should

attract more advertising revenue.

If RTV were merely a purveyor of other

companies' programmes (as it is in the UK)

there could be no objection to its free

use of TVB programmes; its profits

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