XN000022-1997-01-29 — Page 16

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Mr President, Hong Kong needs a high standard of copyright protection to ensure that investment on the production and distribution of films (Hong Kong being the second largest exporter of films by value in the world), sound recordings, books and computer software will continue to prosper and flourish. We believe that total de- regulation (ie. abolishing both the criminal and civil sanctions against parallel importation) would encourage free-riders to take unfair advantage over the substantial investment of copyright owners and exclusive licensees in importation, promotion and marketing in Hong Kong. We also perceive a high risk that Hong Kong works published or distributed in the Region (and China in particular) at a lower price than in Hong Kong (reflecting the lower purchasing power of the Chinese consumers) would flow back into Hong Kong and seriously undermine our recording and film production industries.

However, we are also conscious of the need for competition in the interests of consumers. We note concerns that importation rights in respect of copyright works could possibly be extended to apply to trademark goods or goods incorporating registered designs which are also incidentally capable of copyright protection. We shall continue to consider how to limit the chances of any possible broad application of copyright to prevent parallel importation of other types of goods.

On balance, our view is that we should adopt the LRC recommendation to decriminalise parallel importation but maintain civil remedies. We believe that this approach will strike the best balance between protecting the interests of right owners and exclusive licensees on the one hand, and those of consumers on the other.

Measures to Combat Copyright Piracy

Mr President, now I would like to tum to the enforcement of intellectual property rights, in particular measures to tackle copyright piracy. Let me start by stressing again that the Administration is firmly determined to do its utmost to put in place the best intellectual property regime and to enforce the regime robustly. This is important for us to promote trade, investment and technological innovation and exchanges. We have always acted, and will continue to act, decisively against IPR infringers within Hong Kong's rule of law. We will continue to work together with copyright owners and seek active support from them in our efforts to enforce against piracy activities, such as by testifying in our courts of law.

We have been taking measures to combat copyright piracy on the following fronts with good results -

(a)

closer liaison with IPR enforcement authorities in China to stop pirated copyright products from entering Hong Kong;