The Publishers Association
7 November 1989
SUBMISSION OF THE PUBLISHERS ASSOCIATION OF THE UNITED KINGDOM TO THE LAW REFORM COMMISSION OF HONG KONG ON 'PARALLEL IMPORTATION'
1. We understand that the Law Reform Commission of Hong Kong is considering the possibility of recommending amendments to the Copyright Act, 1956, of Hong Kong to permit exceptions to the right of a copyright holder in Hong Kong to prevent importation of copies. of a copyright work authorised for sale elsewhere but not licensed for sale in Hong Kong. The Publishers Association submits that such amendment would be a fundamental breach of the rights of the owner of the copyright in a work to control the exploitation of a work in different countries, and would be highly damaging to the widespread availability of books in Hong Kong at reasonable prices.
2. The Publishers Association represents the great majority of book and journal publishers in the United Kingdom. British book publishers engage in the business of making a wide variety of books of all kinds, including fiction, general books, school, academic and professional books available worldwide. They do this in partnership with authors by acquiring exclusive publishing rights for different territories from the authors (who are not themselves generally able or willing to manufacture and market their works themselves) or, in the case of many titles first published in English in
United States, by acquiring exclusive publishing rights to different territories from the original publisher in the US, who does not wish to undertake worldwide publishing. The British publishing industry has a long record of valuable service and investment in book supply in Hong Kong and many other countries.
3.
The publishing rights are acquired in return for substantial royalties payable to the author, often supported by an advance, which, for some bestsellers, can run into millions of pounds. The publisher then has the responsibility of editing, designing, manufacturing, promoting, stocking and distributing the titles, involving a major long-term investment, which is dependent on his ability to manufacture in appropriate quantities, price appropriately, and be able to supply efficiently. To do this, the ability to enforce the exclusive publishing rights is essential.
4.
In a jurisdiction like Hong Kong,
Kong, for example, it will generally be necessary for the publisher to appoint exclusive distributors in Hong Kong who will obtain and stock titles, and market them effectively. This in turn requires significant investment dependent on reasonable certainty in the market place.
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5. This system of exclusive licensing is essential to efficient worldwide distribution of a wide range of books.