PERSONAL AND CONFIDENTIAL
6. The Board of Trade add: "We notice that Section 4(2) of the proposed Ordinance makes it a restricted act for Rediffusion (Hong Kong) Ltd. to relay the new commercial T.V. service without the permission of the new authority. This puts the new authority in a controlling position in which they can prevent diffusion of their service by Rediffusion (Hong Kong) Ltd. should they so desire. It would, therefore, appear that the simplest and most direct method of acquiring royalties for the composers providing material for the new service would be for the H.K.T.V.B. to pay the royalties and for the extending Order (by retention of 40(3) of the Copyright Act 1956) to absolve the diffusion service from payment to the composers in respect of this material. The terms agreed between the authority and the diffusion service for the right to relay the broadcast would naturally be arrived at with the cost of the royalties in mind. Thus, we would be in favour of extending Section 40(3) of the Copyright Act 1956, suitably amended, to Hong Kong
7.
The Board conclude: "If, however, it is regarded as essential that the relay company pay the composers, etc. directly, it would appear right that they be given a licence of right to relay without the prior permission of the copyright owners but making payments to them which, if not agreed, would be settled by some form of arbitration".
8.
In the light of your Saving Despatch No. 683 of 8 May you may feel that some of the above has been overtaken by events, but we should now be grateful for your comments.
9.
We may have some further points on the drafting of the Ordinance itself and, if so, we shall be putting these to you separately.
C. C. B. Stewart
Cultural Relations Department
PERSONAL AND CONFIDENTIAL
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