XN000022-1993-05-20 — Page 7

THURSDAY, MAY 20, 1993

IT

ACQUIRED YEARS.

FORMS AN IMPORTANT

PART OF MODERN TECHNOLOGY AND HAS 20 PAST A GROWING ECONOMIC AND TRADE SIGNIFICANCE OVER THE

BY THE

THE STRUCTURE OF AN INTEGRATED CIRCUIT IS DETERMINED LAYOUT-DESIGN WHICH IS THE RESULT OF A COMPLICATED DEVELOPMENT PROCESS REQUIRING MUCH CAPITAL INVESTMENT AND INTELLECTUAL EFFORT,

ONCE THE LAYOUT-DESIGN IS DEVELOPED, IT CAN BE REPRODUCED BASILY AND THE INTEGRATED CIRCUIT MASS PRODUCED AT A FRACTION OF THE DEVELOPMENT COST.

UNDER THE BILL, A LAYOUT-DESIGN WILL BE PROTECTED AUTOMATICALLY UPON ITS CREATION AND UPON FIRST COMMERCIAL EXPLOITATION.

THE TERM OF PROTECTION WILL BE 10 YEARS AFTER A LAYOUT-DESIGN WAS FIRST COMMERCIALLY EXPLOITED.

IF THERE IS NO COMMERCIAL EXPLOITATION, THE TERM WILL BE 15 YEARS AFTER THE LAYOUT-DESIGN WAS CREATED.

LAYOUT-DESIGNS WILL ONLY BE PROTECTED IF THEIR OWNERS ARE REAL QUALIFIED OWNERS, THAT IS, THEY HAVE A RIGHT OF ABODE OR HAVE A AND EFFECTIVE INDUSTRIAL OR COMMERCIAL ESTABLISHMENT FOR THE CREATION OF LAYOUT-DESIGNS OR THE PRODUCTION OF INTEGRATED CIRCUITS IN HONG KONG OR A QUALIFYING COUNTRY, TERRITORY OR AREA.

A QUALIFIED OWNER HAS THE RIGHTS TO REPRODUCE HIS LAYOUT-DESIGN AND TO

COMMERCIALLY EXPLOIT THE LAYOUT-DESIGN. THE BILL CIVIL REMEDIES FOR INFRINGEMENT OF SUCH RIGHTS.

PROVIDES

INCLUDE

THE BILL PERMITS CERTAIN NON-INFRINGING ACTS. THESE REPRODUCTION THE

OF LAYOUT-DESIGNS FOR PRIVATE PURPOSE AND FOR THE PURPOSE OF EVALUATION, ANALYSIS, RESEARCH OR TEACHING, THEY ARE IN LINE WITH THE INTERNATIONAL CONSENSUS.

"WE BELIEVE THAT THESE EXCEPTIONS WOULD ENCOURAGE RESEARCH AND DEVELOPMENT IN INTEGRATED CIRCUITS TECHNOLOGY, MRS IP SAID.

17

THE BILL ENABLES THE GOVERNOR TO DESIGNATE A COUNTRY, TERRITORY OF OR AREA AS A QUALIFYING COUNTRY, TERRITORY OR AREA FOR THE PURPOSE PROVIDING RECIPROCAL PROTECTION, IF HE CONSIDERS THAT *ITS LAW HAS GIVEN ADEQUATE PROTECTION TO HONG KONG OWNERS.

"THIS WILL FACILITATE HONG KONG ΤΟ ENTER INTO RECIPROCAL ARRANGEMENT WITH OTHER COUNTRIES, SHE SAID.

"THE BILL ALSO ALLOWS GOVERNMENT USE OF A LAYOUT-DESIGN WITHOUT THE CONSENT OF ITS OWNER IN PERIODS OF EXTREME URGENCY DECLARED BY THE GOVERNOR IN COUNCIL. THIS IS NECESSARY FOR THE GOVERNMENT TO MAINTAIN THE SUPPLIES AND SERVICES ESSENTIAL TO THE LIFE OF THE COMMUNITY IN EXTREME URGENCY, SHE SAID.

||

"THE INTEREST OF THE OWNER WILL BE PROTECTED BECAUSE THE USE IS SUBJECT TO PAYMENT OF COMPENSATION, SHE ADDED.

"

THE BILL WILL BE GAZETTED NEXT FRIDAY (MAY 28).

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