HONG KONG 2005

With its comprehensive legislation, convenient registration, vigorous enforcement and imaginative public education, Hong Kong has gained a well-deserved reputation for effective protection of intellectual property.

Users of Hong Kong's intellectual property registration systems can now look up registration details over the Internet free of charge from anywhere in the world. Applicants for patent, trademark and design registrations can submit their applications electronically in a secure and user-friendly environment. Applicants and the receiving office both benefit from the electronic service system, which helps to save time and reduce simple errors. The ability to file applications 24 hours a day, seven days a week is a welcome service enhancement for the Intellectual Property Department's international clients. In 2005, over 40 per cent of the department's clients filed electronically.

The Trade Marks Registry is responsible for the registration of goods and services trade marks. In 2005, 20 877 applications were received, comprising 13 444 single-class applications and 7 433 multiple-class applications. During the period, 19 689 marks were registered, a decrease of 1.3 per cent compared with 19 940 in 2004. Out of the total of 101 countries filing applications, the principal places from which applications originated were:

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, which can be registered following local examination procedures. The Patents (General) (Amendment) Rules 2004 has enabled e-filing and e-publication for patents. As a result, the fees for patent registration services, which are charged at full-cost recovery basis, have been reduced by 73 per cent. In 2005, the Patents Registry received 11 763 standard patent applications and 6 518 were granted. There were also 463 applications for grant of short-term patents and 419 were granted.

The Registered Designs Ordinance enables designs to be registered independently in the HKSAR. The Registered Designs (Amendment) Rules 2004 enabled e-filing and e-publication for designs. As a result, the fees for design registration services, which are charged at full-cost recovery basis, have been reduced by 51 per cent. In 2005, the Designs Registry received 3 176 applications for the registration of 5 290 designs — 2 485 single-design applications and 691 multiple-design applications. During the year, 4 989 designs were registered.

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.

The Government released a consultation document on the review of certain provisions of the Copyright Ordinance in December 2004. After considering the submissions made in response to the consultation and further consultations with copyright owners and users, the Government put forward a package of preliminary proposals to amend the Copyright Ordinance in June 2005 and some refinements to the preliminary proposals in November 2005. The proposals aim to update the copyright protection and exemption regime in the light of latest social and technological developments.

The Customs and Excise Department is responsible for enforcing the criminal sanctions for the protection of intellectual property rights. It investigates reports of copyright infringement and trade mark counterfeiting, and takes action against the manufacture, distribution, sale, import and export of pirated and counterfeit goods and possession for business use of certain copyrighted works. The enforcement results for intellectual property rights in 2005 were:

The department maintains stringent control on all optical disc and stamper factories to prevent them from engaging in copyright piracy activities. Optical disc and stamper manufacturers are required to apply for a licence from the Commissioner of Customs and Excise.

During the year, the department took enforcement action against business end-user piracy cases as follows:

The department's Special Task Force continued to take vigorous enforcement action against the illicit manufacture and sale of pirated optical discs. Its main enforcement strategies are to carry out repeated and focused raids on retail outlet black spots and track down their storage and manufacturing facilities. As a result of the department's vigorous enforcement, large-scale illicit manufacturing activities of optical discs and counterfeit goods have been successfully stamped out.

The department also carried out repeated raids against known black spots for selling of counterfeit goods, which resulted in a significant reduction in such illegal activity. In order to evade customs detection, the counterfeiters have to operate for short periods at irregular hours. Some of them only display photographs/catalogues of counterfeit goods to potential customers who are then taken to hidden showrooms. In 2005, the department cracked down 35 such showrooms.

In July, Hong Kong Customs smashed a syndicate exporting counterfeit clothing to Japan and used the provisions in the Organised and Serious Crimes Ordinance to freeze crime proceeds for the first time in trade mark infringement case. Customs successfully applied for a court restraint order to freeze the crime proceeds of about $22 million.

The second Anti-Internet Piracy Team was established in April. During the year, the department took the first-ever successful enforcement action against illegal peer-to-peer activities on the Internet and arrested a man, who was subsequently sentenced to three months' imprisonment. The teams have achieved the following since they were established:

The department continued to work closely with the intellectual property rights industry in enforcement, especially the Intellectual Property Rights Protection Alliance established in March 2004. New initiatives in 2005 included the E-auctioning with Integrity Scheme and the Jewellery Integrity Campaign, which served to protect consumers' interests, enhance customs' enforcement and uphold Hong Kong's image as a shopping paradise for genuine goods.

During the year, the Intellectual Property Department continued territory-wide campaigns, such as the 'No Fakes' and 'I Pledge' campaigns, to emphasise the importance of intellectual property rights. The department, in cooperation with the Guangdong provincial intellectual property authorities, will expand the 'No Fakes' Pledge campaign to other cities in the Guangdong Province in addition to Guangzhou, Shenzhen, Shantou and Dongguan. The aim of the campaign is to promote the 'no fakes' branding concept to Guangdong visitors to Hong Kong and help encourage greater participation among stakeholders in the Pearl River Delta Region.

During the year, the department produced announcements of public interest to promote respect for intellectual property rights. It also continued its primary and secondary school visits programme into the ninth year with the aim of promoting respect for intellectual property rights among the younger generation. The programme covered 74 schools and 22 281 students. To promote awareness of intellectual property protection among students and young people, the department launched an Intellectual Property Tutor Programme in 48 secondary schools, organised the 'Promotion of Respect for Intellectual Property Rights' slogan competition for schools from September to November and launched the Scout Programme on Respect for Intellectual Property Rights in April.

The department commissioned another survey in November to compare changing public attitudes toward intellectual property over the years and to assess the effectiveness of its promotion and public education programmes. The survey results showed that public understanding of intellectual property rights was improving. The second annual survey measuring the awareness of intellectual property in the business community was conducted in February. The results of the survey provided useful insights for strengthening government efforts to promote intellectual property rights among the business sector.

The Guangdong/Hong Kong Expert Group on the Protection of Intellectual Property Rights, which was set up after the Sixth Guangdong/Hong Kong Joint Conference in August 2003, held its fourth meeting in Hong Kong in June 2005.

The Intellectual Property Department continued to participate in the activities of the WTO Council for Trade-related Aspects of Intellectual Property Rights (TRIPS). Representatives of the department also attended conferences at the World Intellectual Property Organisation (WIPO), including the meeting of the assemblies of the member states, and the conferences held by various committees, such as the Standing Committee on Copyright and Related Rights. The department also represented Hong Kong, China at other international and regional intellectual property symposia and conferences, including the 20th meeting of the APEC Intellectual Property Experts Group held in Seoul, South Korea, in February and the 21st meeting held in Manila, Philippines, in August.