138 Commerce and Industry
The department maintains stringent control on all optical disc and stamper factories to prevent them from engaging in copyright piracy activities. Optical disc and stamper manufacturers are required to apply for a licence from the Commissioner of Customs and Excise. At year-end, 119 licensed stamper and optical disc factories, 811 optical disc production lines and 18 stamper production units were registered with the department.
During the year, the department processed 8712 cases and arrested 1 135 persons in connection with copyright piracy. A total of 7.31 million pirated optical discs and other pirated items, valued at $273 million, were seized. The department also processed 898 cases relating to counterfeit goods and goods bearing false trade descriptions. A total of 691 people were arrested and 32 million pieces of counterfeit goods, valued at $305 million, were seized.
During the year, the department detected 23 corporate software end-user piracy cases, resulting in the arrest of 59 people and the seizure of infringing copies of computer software with a market value of $2 million, as estimated by the copyright owners. It also took action against end-user piracy on the use of infringing music videos in karaoke establishments, resulting in the arrest of 15 people and the seizure of 47 sets of computer and other audio-visual equipment valued at $700,000. The department also took action against illicit copying by copy-shops. During the year, the department detected 34 photocopying piracy cases, resulting in the seizure of infringing photocopies and photocopying equipment valued at $1.3 million and the arrest of 44 people.
The Special Task Force of 147 Customs officers continued to take vigorous enforcement action against illicit manufacturing and retail of pirated optical discs. Its major enforcement strategies are to carry out repeated and focused raiding at 'black spot' retail outlets, and to track down their storage and manufacturing facilities to suppress the sale of pirated optical discs.
As a result of the department's vigorous enforcement action, large-scale illicit optical disc manufacturing activities, for which expensive automatic production lines were used, have been successfully stamped out, and no such activity was detected in 2004. Copyright pirates continue to rely on small-scale copying workshops equipped with CD/DVD-writers to manufacture pirated discs. During the year, the department neutralised 22 such illegal workshops, with the seizure of 633 CD/DVD-writers and the arrest of 63 people.
The department also takes action against copyright piracy on the Internet. Since its establishment in early 2000, the department's Anti-Internet Piracy Team has detected 37 Internet piracy cases, resulting in the seizure of pirated goods and equipment valued at $2.22 million, and the arrest of 63 people.
Public Education
During the year, the Intellectual Property Department continued territory-wide campaigns such as the 'No Fakes' and 'I Pledge' campaigns to promote intellectual property rights to the public. With the aim of promoting the 'no fakes' branding concept to visitors from Guangdong, and to help encourage greater participation