The Government is committed to protecting intellectual property rights. This commitment is underpinned by a respect for private economic rights and a recognition of the importance of a robust protection regime for intellectual property rights to Hong Kong's economic growth. The intellectual property regime in the HKSAR is in full compliance with international standards.

Trade Marks

The Trade Marks Registry is responsible for the registration of trade marks in respect of goods and services. Every mark must satisfy the requirements of the Trade Marks Ordinance before it can be accepted for registration in the HKSAR. The procedure for applying for registration is laid down in the Trade Marks Rules. In 2002, 20 446 applications were received, of which 15 728 were in respect of goods and 4 718 were in respect of services. During the period, 16 240 marks were registered, an increase of 14.2 per cent compared with 14 219 in 2001. Out of the total of 79 countries filing applications, the principal places from which applications originated were:

The register had a total of 156 944 marks as at December 31, 2002.

    The Intellectual Property Department has started to develop a new computer system, through an outsourced service provider, to facilitate the implementation of the new Trade Marks Ordinance, which is scheduled to come into force in 2003.

Patents

The Patents Ordinance provides for the grant of standard patents based on patents granted in the State Intellectual Property Office of China, the United Kingdom Patent Office or the European Patent Office (in respect of patents designating the United Kingdom). It also provides for the grant of short-term patents. In 2002, the Patents Registry received 9 130 standard patent applications and 2 176 were granted. During the period, there were also 333 applications for grant of short-term patents, and 265 were granted.

Registered Designs

The Registered Designs Ordinance enables designs to be registered independently in the HKSAR. In 2002, the Designs Registry received 2 183 applications for registration of 3 100 designs, comprising 1 826 single-design applications and 357 multiple-design applications. During the period, 2 992 designs were registered.

Copyright

The Copyright Ordinance provides protection for literary, dramatic, musical and artistic works, typographical arrangements of published editions, sound recordings, films, broadcasts, cable programmes, and performers' performances irrespective of the domicile of the copyright owners. In line with international standards, there is no requirement to register copyright.

Enforcement

The Customs and Excise Department is responsible for enforcing the criminal law for the protection of copyright and trademarks. It investigates reports of copyright infringement and trademark counterfeiting and takes action against the manufacture, distribution, sale, import and export of pirated or counterfeit goods. The department also takes action against the possession of infringing copies of computer programmes, movies, television dramas and music recordings in business as well as unauthorised possession of video recording equipment in a place of public entertainment used primarily as a cinema, theatre or concert hall.

    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. To further suppress copyright piracy, the Prevention of Copyright Piracy Ordinance (Amendment of Schedule 1) Order 2002 was introduced to establish a requirement for manufacturers of stampers in Hong Kong to obtain a licence with effect from July 19, 2002. At year-end, 92 licensed stamper and optical disc factories and 604 optical disc production lines were registered by the department.

    During the year, the department processed 11 478 cases and arrested 1 411 persons in connection with copyright piracy activities. The total quantity of items seized amounted to 10.6 million, with a value of $334.5 million. The department also processed 839 cases relating to counterfeit goods and goods bearing false trade descriptions. A total of 638 persons were arrested and 8.76 million pieces of counterfeit goods, valued at $205.5 million, were seized.

    During the year, the department detected six corporate end-user piracy cases, resulting in the arrest of seven persons and the seizure of infringing computer software with a market value of $4.9 million, as estimated by the copyright owners. It also received four reports of unauthorised possession of video recording equipment in cinemas, theatres or concert halls and took prompt enforcement action.

    As an initiative to help young people to keep away from copyright pirates, the Customs and Excise Department and the Social Welfare Department jointly established in April a referral system under which juvenile offenders apprehended in piracy cases can be given assistance as necessary and counselling. In 2002, a total of eight juvenile offenders were referred to the Social Welfare Department under the referral system.

    A Special Task Force, comprising 147 Customs officers, continued to take action against illicit manufacturing and retailing of optical discs. The department also carried out operations at 'black spot' retail outlets and 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 used, had been successfully stamped out, and no such large-scale activity was detected in 2002. It appeared that copyright pirates were turning to smaller scale operations by setting up copying workshops equipped with CD-writers to manufacture pirated discs. During the year, the department dismantled 41 illegal workshops, seizing 1 350 CD-writers and arresting 81 persons.

    The department takes action against copyright piracy activities on the Internet. Since its establishment in early 2000, the department's Anti-Internet Piracy Team has detected 14 Internet piracy cases, resulting in the seizure of pirated goods and equipment valued at $895,000, and the arrest of 28 persons.

Public Education

During the year, the Intellectual Property Department continued to focus on organising a series of activities to keep up the momentum of public education. Consumers and retailers were encouraged to join the ongoing campaigns, 'I Pledge' and 'No Fakes', respectively to show their commitment to buy, use and sell genuine goods.

    In 2002, the department continued its programme of visiting secondary schools. Visits to 75 schools with a total of 23 317 students were made. The production of a web-based interactive teaching kit on intellectual property was expected to be completed in early 2003.

    In March, the Intellectual Property Department played host to the 14th meeting of the APEC Intellectual Property Expert Group (IPEG). The two-day meeting was attended by delegates from 14 member economies. Concurrently, the department organised jointly with the Department of Health a 'Symposium on Traditional Medicine'. Experts on the subject from around the world as well as from the World Intellectual Property Organisation were invited to speak in the symposium.

    In collaboration with Radio Television Hong Kong, the department produced a series of eight documentary episodes on various issues relating intellectual property including trade marks, patents, designs and copyright. The series was broadcast weekly on TVB Jade in August and September.

    With the aim of attracting more youngsters to join the 'I Pledge' campaign, the department sponsored a Canto-pop concert at the Hong Kong Coliseum in November, with the theme of 'Anti-piracy' and 'Anti-counterfeiting'.

    To strengthen cooperation and exchanges with its counterparts in the Mainland — especially in the Pearl River Delta — the department organised a 'Mainland, Hong Kong SAR and Macau SAR Intellectual Property Symposium' in Guangzhou in December. In the same month, the department led a delegation of legal and accounting professionals in a roadshow describing Hong Kong's intellectual property system and the related professional services provided by the HKSAR practitioners. The roadshow was held in Guangzhou, targeting Hong Kong SMEs operating in the Pearl River Delta region as well as private enterprises in the Mainland.

Participation in International Organisations

The Intellectual Property Department continued to participate in the activities of the WTO Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS) in 2002. Representatives of the department also attended conferences at the World Intellectual Property Organisation (WIPO), including the meeting of the Assemblies of the Member States, the conferences held by various committees including the Standing Committee on Trademarks, Industrial Designs and Geographical Indications, the Standing Committee on Copyright and Related Rights, and the Intergovernmental Committee on Intellectual Property and Genetic Resources, Traditional Knowledge and Folklore. At the regional level, the department organised an APEC IP Experts Capacity Building Programme for TRIPS Implementation in February. In support of the programme, the department conducted a one-week training seminar for member economies. The department also represented Hong Kong, China at other international and regional intellectual property symposia and conferences, including the 15th meeting of the APEC IPEG held in Los Angeles in July.