ENG-2001 — Page 158

COMMERCE AND INDUSTRY

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in schools, the Copyright (Suspension of Amendments) Ordinance 2001 was passed by the Legislative Council in June. As a result, the criminal provisions in the recently amended Copyright Ordinance will continue to apply, with a slightly narrowed scope, to computer programmes, movies, television dramas and music recordings. For copyright works other than these four categories, the criminal provisions will revert to the position before the amendments took effect.

The Intellectual Property (Miscellaneous Amendments) Ordinance 2001 was passed by the Legislative Council in February but has not yet entered into force. This ordinance makes miscellaneous amendments to the Patents Ordinance and the Registered Designs Ordinance.

In July, the Registration of Copyright Licensing Bodies Regulation was made to enhance the transparency of copyright licensing bodies. As at December 31, one copyright licensing body was registered with the Director of Intellectual Property.

Enforcement

The Customs and Excise Department is responsible for enforcing the criminal law for the protection of copyright and trade marks. It investigates intellectual property rights infringement reports and takes action against the manufacture, distribution, sale, import and export of pirated or counterfeit goods. Since April, the department has been taking action against corporate copyright piracy activities involving the possession of pirated computer programmes, movies, television dramas, or musical recordings in business. Action was also taken against the unauthorised possession of video recording equipment in cinemas, theatres or concert halls, thereby preventing illegal recording of copyright work.

During the year, the department detected seven corporate piracy cases, resulting in the arrest of 12 persons and the seizures of infringing computer software with a market value of $61,460, as estimated by the copyright owners. During the year, no report on unauthorised possession of video recording equipment in cinemas, theatres or concert halls was filed with the department.

The department maintains stringent control on all optical disc factories to prevent them from engaging in copyright piracy activities. Optical disc manufacturers are required to apply for a licence from the Commissioner of Customs and Excise. At the end of the year, 74 licensed optical disc factories and 533 optical disc production lines were registered by the department.

During the year, the department processed 12 301 cases and arrested 1 686 persons in connection with copyright piracy activities. The total quantity of items seized amounted to 9.27 million, valued at $256.7 million. The department also processed 977 cases relating to counterfeit goods and goods bearing false trade descriptions. A total of 581 persons were arrested and 51.1 million pieces of counterfeit goods, valued at $213.8 million, seized.

The formation of a Special Task Force, comprising 147 Customs officers, was made permanent and the task force continued to take action against illicit manufacturing and retailing of optical discs. The department also carried out large-scale operations at 'black-spot' retail outlets and at licensed optical disc factories suspected to be involved in piracy.

As a result of the department's vigorous enforcement action, large-scale illicit optical disc manufacturing activities, for which expensive replicating machines were