Hong Kong: leading the way

Developments in digital technology have popularised the streaming and pirating of content. File-sharing websites such as The Pirate Bay and Grooveshark have contributed towards copyright infringement among a new generation of consumers. Combating the popularity of such models can be difficult—convenience competes with respect for copyright—and public opinion can even turn against intellectual property rights.

But in Hong Kong at least, the Intellectual Property Department (IPD) says it is seeing a steady rise in the awareness of and respect for IP rights among the country’s population.

Every year the office holds a survey on the popularity of IP rights. The results of last year’s instalment were released in March and, according to Ada Leung, director of the IPD, the outlook is good. She says the results from the latest survey “revealed that the awareness of IP rights remains high among the general public in Hong Kong”, adding that “the awareness of such protection in the digital environment is also increasing and more members of the general public will pay and download copyright works from authorised websites”.

According to the “Survey on Public Awareness of Intellectual Property Rights Protection”, 95% of respondents considered IP rights necessary, while 90% of people were aware of upcoming changes to the copyright law in Hong Kong and 60% were familiar with pending changes to design rights.

Concerning IP rights online, the number of people who said they would knowingly purchase counterfeit or pirated content dropped to 7.4% in 2014, down from 8.5% in the previous year.

Promotion of and education on IP rights are what Leung cites as some of the office’s biggest successes in generating a high level of respect for IP in the country.

“In respect of IP promotion and public education, over the years Hong Kong has built up a reputation which is rather highly regarded and valued by other stakeholders.

“We have an annual budget of $1.2 million to promote public awareness of and respect for IP rights in the community through ongoing and sustained public education programmes.

“Hong Kong has long been considered one of the leading economies in raising public awareness of the importance of IP rights,” she adds.

Copyright reforms

Such groundwork arguably paves the way for a smooth implementation of the Copyright (Amendment) Bill 2014. Leung says the bill “aims to update our copyright regime to ensure that it can keep pace with technological advancements and developments in other places”.

Among the proposals in the bill are criminal sanctions for unauthorised distribution of copyright protected works and a “safe harbour” for internet service providers that frees them from liability if they demonstrate active steps to stop piracy.

International cooperation

Some of the biggest filers of trademark and patent applications are international companies, keen to gain a foothold in this economically important territory, and an effective legal framework for protecting IP rights is arguably important for boosting companies’ confidence in doing business in Hong Kong.

Between 2009 and 2014 the IPD reported a large growth in the number of trademark applications. In that period there was a growth of 61%, reaching a high of 40,063 applications in 2014. In the same year, the office handled 12,542 standard patent applications and 587 short-term patent applications. It is perhaps an impressive amount for a territory with such a small land mass.

The international nature of the applicants reinforces Hong Kong’s reputation as a place where IP rights are highly valued. As of December 2014, US semiconductor company Qualcomm had applied for the most patents (4,089) in Hong Kong, more than double those by second-placed consumer goods company Procter & Gamble (1,738). Roche, Microsoft and AstraZeneca make up the rest of the top five patent filers. Also at the end of 2014, there were 342,696 trademarks and 40,865 patents in force in the region.

"Some of the biggest filers of trademark and patent applications are international companies, keen to gain a foothold in this economically important territory."

The numbers are a measure of confidence in the importance of Hong Kong as a trading nation and its respect for IP rights.

“We have a robust legal system and IP representative system, and we strive to keep our IP legislation in line with the latest international norms and developments. Through participating in international conferences and meetings, we have kept the international community informed of our latest developments on these fronts and exchanged views and knowledge on them,” Leung says.

Leung talks about the office’s determination not to rest on its laurels and to keep up with international standards, borrowing new ideas and legislation from other jurisdictions and constantly engaging in dialogue.

For her, the challenges faced by the IPD are not so different from those of other national offices.

“The biggest challenge faced by the IPD, and without doubt by other IP offices, is that the IP field is a fast developing area. Public awareness of the importance of IP rights and demand for IP protection is ever increasing.

“Furthermore, advancement in technologies also has a bearing on developments in IP rights protection: user habits and infringement patterns change quickly in a digital environment. For a globalised knowledge-based economy like Hong Kong, we cannot afford to sit back but must be able to respond fast to the needs of businesses and the community at large in order to stay ahead of the game,” she adds.

Since 2011, the IPD has been deepening its ties with China’s State Intellectual Property Office (SIPO). Under the Cooperation Arrangement in the Area of Patent in Hong Kong agreement, SIPO will lend further assistance to the IPD in patent examination procedures. The two offices have worked on refining a system for short-term patents, which Leung believes will contribute to the development of Hong Kong into a “regional innovation and technology hub as well as a premier IP trading hub”.

International cooperation is important for Hong Kong’s goal of developing the region as an IP hub. It’s an initiative, Leung says, that began in 2013, when the government set up a working group on IP trading in March of that year “to advise the government on the overall strategies”.