TNAG-0350-FCO40-386-Future-of-broadcasting-in-Hong-Kong-1972 — Page 53

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granted to a locally incorporated Company called

Television Broadcast Limited (TVB) which began

broadcasting in November 1967 with licence terms

providing for an initial five-year monopoly of

wireless transmission.

5.

At this stage Rediffusion was dealt a severe and

potentially mortal blow. The Hong Kong Government

announced its intention of introducing a new

Copyright law, incorporating an unprecedented clause

making it unlawful to relay broadcast programmes

without a licence from the broadcaster. As it was

known that TVB had promoted this clause specifically

to prevent Rediffusion from relaying their programmes,

Rediffusion faced, in effect, the virtual expropriation

of a licensed right without which it would never have

made its large investment in cable television in Hong

Kong. All representations to the Government having

proved sterile, Rediffusion had no alternative but to

resort to the Courts. Prolonged and expensive proceedings,

leading to the Privy Council, unfortunately proved

unhelpful because the Government took certain technical

points, one of which was successful, and this prevented

any adjudication on the main issue at that time.

Furthermore, it became clear that by the time the

matter could finally be settled in the Courts,

Rediffusion's current licence, which runs until April

1973, would be at an end and the Company's position

and investment would have been hopelessly undermined.

Therefore, as a compromise, Rediffusion undertook not

to relay the programmes of TVB provided the Government

undertook to drop the offensive copyright legislation.

This compromise, as was intended, cleared the air for

discussion about the whole future of broadcasting in

Hong Kong, and Rediffusion's part in it.

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