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Our ref : 51/WKC/121
15 June 2001

Commerce and Industry Bureau
Level 29 One Pacific Place
88 Queensway
Hong Kong

Attention: Ms Laura Tsoi

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Dear Sirs

Liberalisation of Parallel Importation for Computer Software

Thank you for inviting the Chamber to comment on the proposal to liberalise parallel importation of computer software under the Copyright Ordinance. Following consultation with Chamber members, we would like to submit our comments as follows.

The Rationale for Liberalisation

Many businesses especially SMEs who are willing to buy genuine copies sometimes have difficulty to do so as supply is limited by the 18-months ban over parallel importation. In the modern world, information technology changes rapidly and eighteen months will render many software products outdated. In our view, parallel importation of computer software should be considered more as a trade matter rather than a matter of copyright protection. It is unrealistic and unreasonable, therefore, for the 18-month ban to remain.

We believe there is over-regulation over parallel importation of computer software under the Copyright Ordinance, and hence a strong case for liberalising that aspect of the Ordinance.

De-regulating Parallel Importation

The Chamber believes that for computer software, criminal provisions regarding importation should apply only to imports of pirated products, not to parallel importation of genuine products. In other words, the current criminal sanctions over parallel importation of copyrighted material within 18 months of first publication should be removed for computer software. In the same vein, we support the removal also of civil liabilities as proposed by the government.

How to Liberalise

We suggest that the de-regulation be implemented through the introduction of enabling provisions in the Copyright Ordinance to empower the Administration to exempt or suspend the application of the sanctions on parallel imports, initially to the computer software sector. Such enabling legislation will provide flexibility for the government to apply the same suspension to other particular sectors in future where there is a clear case to do so.

Conclusion

In conclusion, the Chamber recommends the removal of both criminal and civil sanctions for parallel importation of computer software under the Copyright Ordinance. The change should be implemented through the introduction of enabling legislation.

Finally, I wish to record the Chamber¡¦s appreciation of the positive way in which the government responds to the business community¡¦s concerns, of which this proposal to liberalise parallel importation of computer software is another fine example. We would be happy to remain engaged in further discussion with the government on how to implement this proposal.

Yours sincerely

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Dr Eden Woon
Director

cc The Hon James Tien, Chamber LegCo representative

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