Prevention of Copyright Piracy Bill

A BILL

Make further provision for the prevention of copyright piracy.

Enacted by the Provisional Legislative Council.

Preliminary

1. Short title and commencement

(1) This Ordinance may be cited as the Prevention of Copyright Piracy Ordinance.

(2) This Ordinance shall come into operation on a day to be appointed by the Secretary for Trade and Industry by notice in the Gazette.

2. Interpretation

(1) In this Ordinance, unless the context otherwise requires--

"authorized officer" (獲授權人員) means a public officer authorized by the Commissioner under section 32;

"Commissioner" (關長) means the Commissioner of Customs and Excise and any Deputy or Assistant Commissioner of Customs and Excise;

"court" (法院) includes a magistrate;

"licence" (特許) means a licence granted under section 5;

"licensed premises" (獲批特許的處所"), in relation to a licensee, means any premises specified in his licence in which optical discs are authorized to be manufactured;

"licensee" (特許持有人) means a person to whom a licence is granted, and includes any person to whom a licence is transferred in accordance with section 8;

"manufacturer's code" (製造者代碼) means a code, mark, sign, symbol or device that indicates the source of manufacture of an optical disc; "optical disc" (光碟) includes--

(a) any medium or device listed in Schedule 1; and

(b) any other medium or device on which data may be stored in digital form and read by means of a laser,

and, for greater certainty, includes any such medium or device manufactured for any purpose and whether or not any data readable by means of a laser has been stored on it;

"place" (地方) means any area on land or water and includes any building, structure or enclosure, whether moveable or not;

"register" (登記冊) means the register kept by the Commissioner under section 31.

(2) For the purpose of this Ordinance, a person manufactures optical discs in Hong Kong if he owns, directs, manages or otherwise has control of a business in Hong Kong which includes the manufacturing of optical discs in Hong Kong.

(3) All other words and expressions used in this Ordinance and defined in the Copyright Ordinance (92 of 1997) have the same meaning as in that Ordinance.

Licences to manufacture optical discs

3. Licence required to manufacture
optical discs

(1) No person shall manufacture optical discs in Hong Kong unless he holds a valid licence.

(2) Subsection (1) does not apply--

(a) to an employee of a licensee who manufactures optical discs in the course of his employment; or

(b) to the manufacture of optical discs for a purpose prescribed by the regulations.

4. Prohibition on manufacturing at
unlicensed premises

(1) No licensee shall manufacture optical discs in any place in Hong Kong other than a licensed premises.

(2) Subsection (1) does not apply to the manufacture of optical discs for a purpose prescribed by the regulations.

5. Application for and grant of licence

(1) The Commissioner may grant a licence to any person who makes an application for a licence in accordance with this Ordinance.

(2) In granting a licence, the Commissioner may impose such conditions as he thinks fit including, without limiting the generality of the foregoing, conditions for--

(a) preventing the manufacture of infringing copies of copyright works;

(b) protecting the rights of copyright owners and other persons to whom rights are conferred under the Copyright Ordinance (92 of 1997);

(d) securing compliance by the licensee with any conditions of the licence; and

(e) ensuring the effective administration of this Ordinance.

6. Form, duration and effect of licence

(1) Every licence shall be in a form determined by the Commissioner and shall be valid for such period, not exceeding 3 years, as is specified in the licence.

(2) Every licence shall authorize the person named therein to manufacture optical discs in the premises specified in the licence.

(3) Any conditions imposed under section 5(2) shall be endorsed on the licence.

7. Amendment and renewal of licence

(1) The Commissioner may amend or renew a licence upon application made by the licensee in accordance with this Ordinance.

(2) An application to amend or renew a licence must be made during such period as the Commissioner may specify.

(3) Sections 5 and 6 apply, with such modifications as the circumstances require, to the amendment or renewal of a licence under this section.

8. Transfer of licence

(1) A licensee may transfer his licence to another person if the Commissioner approves the transfer under subsection (2).

(2) The Commissioner may upon application made by a licensee in accordance with this Ordinance, showing cause to his satisfaction, approve the transfer of the licence to another person.

(3) In approving the transfer of a licence, the Commissioner may amend any conditions endorsed on it or impose any new conditions as he thinks fit, including any conditions referred to in section 5(2).

(4) Any transfer of a licence approved by the Commissioner under this section shall be endorsed on the licence.

(5) Any amendment to the conditions of a licence made by the Commissioner under subsection (3) and any new conditions imposed by him under that subsection shall be endorsed on the licence.

9. Display of licence

(1) Subject to subsection (2), a licensee shall cause his licence to be displayed at all times in a conspicuous location at the licensed premises.

(2) If there is more than one licensed premises, the licensee shall--

(a) cause the licence to be displayed at any of the licensed premises; and

(b) obtain a duplicate licence from the Commissioner for each other licensed premises and cause it to be displayed at all times in a conspicuous location at that licensed premises.

10. New information to be furnished

(1) A licensee shall notify the Commissioner of any change which occurs in relation to any particulars set out in--

(a) any application made by him under this Ordinance; or

(b) any notice previously given by him under this section.

(2) The licensee shall so notify the Commissioner not later than 30 days after the change takes effect.

(3) A notice under this section shall be given in such form and manner as the Commissioner may require.

11. Refusal to grant or renew licence

(1) The Commissioner may refuse to grant a licence, or to renew a licence, if he is satisfied that--

(a) the applicant for the licence or renewal, or a partnership or body corporate managed, owned or controlled by him, has been convicted of an offence under this Ordinance or the Copyright Ordinance (92 of 1997) or under any previous law of Hong Kong relating to copyright;

(b) an offence under this Ordinance or the Copyright Ordinance (92 of 1997) or under any previous law of Hong Kong relating to copyright has been committed in connection with any premises to which the application for the licence or renewal relates, whether or not any person has been convicted of that offence;

(c) the applicant, or a partnership or body corporate managed, owned or controlled by him, has been adjudged by a court in Hong Kong to have infringed copyright;

(d) the applicant has furnished to the Commissioner any false or misleading information in connection with any application made, or notice given, by him under this Ordinance; or

(e) the applicant is not, for any other reason satisfactory to the Commissioner, a fit and proper person to hold a licence.

(2) If the Commissioner refuses to grant or renew a licence, he shall notify the applicant in writing of the grounds for the refusal within 14 days after his decision.

12. Revocation of licence

(1) The Commissioner may revoke a licence on any of the grounds for which he may refuse to grant or renew a licence under section 11(1).

(2) In addition, the Commissioner may revoke a licence if he is satisfied that the licensee--

(a) has ceased to manufacture optical discs in Hong Kong;

(b) has ceased to manufacture optical discs at any licensed premises; or

(3) The Commissioner shall not revoke a licence unless he first--

(a) notifies the licensee in writing of his intention and the grounds upon which he proposes to revoke the licence; and

(b) permits the licensee to make representations to him in writing.

(4) Representations under subsection (3)(b) shall be made within 14 days from the date of the notification under subsection (3)(a) or within such greater period as is specified in the notice.

(5) If the Commissioner revokes a licence, he shall notify the licensee in writing of the grounds for the revocation within 14 days after his decision.

(6) For the purpose of subsection (1)--

(a) any reference in section 11(1) to an applicant shall be construed as a reference to a licensee; and

(b) the reference in section 11(1)(b) to the application for the licence or renewal shall be construed as a reference to the licence.

13. Cancellation of licence

The Commissioner may cancel a licence upon application made by the licensee in accordance with this Ordinance.

14. Appeals to Administrative Appeals Board

Any person who is aggrieved by a decision of the Commissioner made under section 11 or 12 may appeal the decision to the Administrative Appeals Board.

Marking of optical discs

15. Optical discs must be marked with
approved manufacturer's code

(1) Any person who manufactures optical discs in Hong Kong shall cause each optical disc manufactured by him--

(a) to be marked with a manufacturer's code the use of which by him has been approved by the Commissioner under section 16; and

(b) to be so marked in accordance with any conditions imposed by the Commissioner under section 16.

(2) Subsection (1) does not apply to the manufacture of optical discs for a purpose prescribed by the regulations.

(3) In this section and section 16, "marked" (標上) means to be etched, engraved or otherwise indelibly marked in such manner that the manufacturer's code is legible upon a visual examination of the optical disc.

16. Application for and grant of approval

(1) The Commissioner may in writing, upon application made by any person in accordance with this Ordinance, approve the use by that person in the manufacture of optical discs of any manufacturer's code for which the application is made.

(2) In approving the use by a person of a particular manufacturer's code, the Commissioner may in writing impose such conditions as he thinks fit including, without limiting the generality of the foregoing, conditions respecting--

(a) the content of, or information to be conveyed by, the manufacturer's code;

(b) the manner in which, and the means by which, the manufacturer's code is to be marked on an optical disc; and

Inspection and enforcement

17. Power of authorized officers to inspect
licensed premises, etc.

(1) Every authorized officer shall for the purposes of this Ordinance have power to do all or any of the following things--

(a) to enter at all reasonable times (or, if specially authorized in writing by the Commissioner, at any time) any licensed premises;

(b) to inspect and search the licensed premises and every part thereof;

(c) to require the production of any licence relating to the operation of the licensed premises or the business concerned, whether granted under this Ordinance or otherwise;

(d) to require the production of any book or document relating to the business concerned, including any licence or other document relating to a person's right to manufacture optical discs;

(e) to inspect, remove and detain for the purpose of examination for so long as the Commissioner may consider necessary and to examine and copy any such licence, book or document;

(f) to remove and detain for the purpose of examination for so long as the Commissioner may consider necessary and to examine samples of optical discs found in the licensed premises;

(g) to make such examination and inquiry as may be necessary to ascertain whether the provisions of this Ordinance or the Copyright Ordinance (92 of 1997) or the conditions of any licence granted under this Ordinance are being, or have been, complied with; and

(h) to exercise such other powers as may be necessary for giving effect to the provisions of this Ordinance.

(2) A licensee and the employees, servants or agents of a licensee shall furnish the means required by an authorized officer to enable him to exercise his powers or perform his duties under this section.

(3) If in pursuance of this section any authorized officer, having demanded admission into any place and declared his name and business at any entrance thereof, is not immediately admitted, he and any person acting in his aid may break into and forcibly enter the place.

18. Power of authorized officers to enter
and search, etc.

(1) An authorized officer may--

(a) subject to section 19, enter and search any place; and

(b) stop, board and search any vessel, aircraft or vehicle (other than a ship of war, military aircraft or military vehicle),

in which he reasonably suspects that there is--

(i) any optical disc which has been manufactured in contravention of this Ordinance; or

(ii) any machinery, equipment or other thing which may be or may contain, or which may likely be or contain, evidence of an offence under this Ordinance.

(2) An authorized officer may, in exercising his powers under subsection (1), seize, remove or detain--

(a) any optical disc which appears to him to have been, or to be likely to have been, manufactured in contravention of this Ordinance; and

(b) any machinery, equipment or other thing which appears to him to be or to contain, or to be likely to be or to contain, evidence of an offence under this Ordinance.

(3) An authorized officer may seize, remove or detain any vessel, aircraft or vehicle (other than a ship of war, military aircraft or military vehicle) which he is empowered by this section to stop, board and search and which he reasonably suspects is being used, or to have been used, in connection with an offence under this Ordinance.

(4) An authorized officer may--

(a) break open any outer or inner door of any place which he is empowered by this section to enter and search;

(b) forcibly board any vessel, aircraft or vehicle which he is empowered by this section to stop, board and search;

(d) detain any person found in any place which he is empowered by this section to enter and search until such place has been searched; and

(e) prevent any person from approaching or boarding any vessel, aircraft or vehicle which he is empowered by this section to stop, board and search until it has been searched.

(5) Where it is not practicable to remove any machinery, equipment or other thing pursuant to subsection (2)(b), an authorized officer may--

(a) if it is possible to do so without causing permanent damage to the machinery, equipment or other thing, render it inoperable; or

(b) seal the machinery, equipment or other thing or the place where it is kept so as to prevent its use without breaking the seal

19. Authority to issue warrant
for entry and search

(1) A magistrate may, if he is satisfied by information on oath that there are reasonable grounds for suspecting that there is in any place--

(a) any optical disc which has been manufactured in contravention of this Ordinance; or

(b) any machinery, equipment or other thing which may be or may contain, or which may likely be or contain, evidence of an offence under this Ordinance,

issue a warrant authorizing an authorized officer to enter and search the place.

(2) Subject to subsection (3), an authorized officer shall not enter and search any place under section 18(1)(a) except under the authority of a warrant issued under this section.

(3) An authorized officer may enter and search any place under section 18(1)(a) without a warrant issued under this section if the delay necessary to obtain a warrant could result in the loss or destruction of evidence or for any other reason it would not be reasonably practicable to obtain a warrant.

20. Seized optical discs, etc.,
liable to forfeiture

(1) Anything seized, removed or detained by an authorized officer under section 18(2) is liable to forfeiture in accordance with this section and whether or not any person has been charged with an offence under this Ordinance.

(2) Sections 131 and 133 of the Copyright Ordinance (92 of 1997) shall apply in respect of anything liable to forfeiture under subsection (1) in the same manner as they apply in respect of anything liable to forfeiture under section 131 of that Ordinance.

(3) For the purpose of applying sections 131 and 133 of the Copyright Ordinance (92 of 1997), any reference in those sections--

(a) to an offence under section 118 or 120 of that Ordinance shall be construed as a reference to an offence under this Ordinance;

(b) to an article, vessel, aircraft, vehicle or thing seized or detained by an authorized officer under section 122 of that Ordinance shall be construed as a reference to anything seized or detained by an authorized officer under section 18(2) of this Ordinance; or

Offences and penalties

21. Manufacturing optical discs
without licence, etc.

(1) Any person who contravenes section 3 commits an offence and is liable--

(a) on a first conviction, to a fine of $500,000 and to imprisonment for 2 years; and

(b) on a second or subsequent conviction, to a fine of $1,000,000 and to imprisonment for 4 years.

(2) Any person who contravenes section 4 or 15 commits an offence and is liable--

(a) on a first conviction, to a fine at level 6 and to imprisonment for 2 years; and

(b) on a second or subsequent conviction, to a fine of $200,000 and to imprisonment for 4 years.

(3) Any licensee who manufactures optical discs in contravention of any conditions endorsed on his licence commits an offence and is liable--

(a) on a first conviction, to a fine at level 2 and to imprisonment for 6 months; and

(b) on a second or subsequent conviction, to a fine at level 4 and to imprisonment for 1 year.

(4) Any person who contravenes section 9 or 10 commits an offence and is liable on conviction to a fine at level 2 and to imprisonment for 6 months.

22. Applying false manufacturer's code, etc.

(1) Any person who--

(a) forges an approved manufacturer's code;

(b) falsely applies to an optical disc an approved manufacturer's code or any mark so resembling an approved manufacturer's code as to be calculated to deceive;

(c) makes any die, block, machine or other instrument for the purpose of forging, or of being used for forging, an approved manufacturer's code;

(d) disposes of or has in his possession any die, block, machine or other instrument for the purpose of forging an approved manufacturer's code; or

(e) causes to be done anything referred to in paragraph (a), (b), (c) or (d),

commits an offence.

(2) Any person who commits an offence under subsection (1) is liable--

(a) on a first conviction, to a fine of $500,000 and to imprisonment for 2 years; and

(b) on a second or subsequent conviction, to a fine of $1,000,000 and to imprisonment for 4 years.

(3) In any proceedings for an offence under subsection (1) it shall be a defence for the person charged to prove that he acted without intent to deceive or defraud.

(4) In this section, "approved manufacturer's code" (獲批准的製造者代碼) means a manufacturer's code approved by the Commissioner under section 16.

23. False and misleading statements

Any person who makes any false or misleading statement or furnishes any false or misleading information in connection with--

(a) any application made, or notice given, by him under this Ordinance; or

(b) any request by the Commissioner or an authorized officer for information under this Ordinance,

commits an offence and is liable on conviction to a fine at level 2 and to imprisonment for 6 months.

24. Obstruction of authorized officers

(1) Without prejudice to any other Ordinance, any person who--

(a) wilfully obstructs an authorized officer in the exercise of his powers or the performance of his duties under this Ordinance;

(b) wilfully fails to comply with any requirement properly made to him by any such authorized officer;

(c) without reasonable excuse, fails to give such authorized officer any other assistance which he may reasonably require to be given for the purpose of exercising his powers or performing his duties under this Ordinance; or

(d) breaks or interferes with a seal affixed by an authorized officer under section 18(5)(b),

commits an offence and is liable on conviction to a fine at level 4 and to imprisonment for 1 year.

(2) Any person who, when required to give information to the Commissioner or an authorized officer in the exercise of his powers or the performance of his duties under this Ordinance, knowingly gives false or misleading information commits an offence and is liable on conviction to a fine at level 4 and to imprisonment for 1 year.

(3) Nothing in this section requires any person to give any information which may incriminate him.

25. Offences related to disclosure
of information

(1) Subject to subsection (2), any person who discloses to any other person any information obtained by him in pursuance of this Ordinance commits an offence unless the disclosure was made--

(a) for the purpose of the performance by him or any other person of duties or functions under this Ordinance; or

(b) under the direction or order of a court.

(2) A person does not commit an offence under subsection (1) by disclosing information pursuant to section 35 or 36.

(3) Any person who commits an offence under subsection (1) is liable on conviction to a fine at level 4 and to imprisonment for 1 year.

26. Liability of persons other than
principal offender

(1) Where a body corporate commits an offence under this Ordinance in respect of any act which is proved to have been committed with the consent or connivance of, or to be attributable to any act on the part of, any director, manager, secretary or other similar officer of the body corporate or any person purporting to act in any such capacity, he, as well as the body corporate, commits the offence.

(2) Where the affairs of a body corporate are managed by its members, subsection (1) applies in relation to the acts of a member in connection with his functions of management as if he were a director of the body corporate.

(3) Where an offence under this Ordinance committed by a partner in a partnership is proved to have been committed with the consent or connivance of, or to be attributable to any act on the part of, any other partner of the partnership or any person concerned in the management of the partnership, that other partner or the person concerned in the management of the partnership commits the like offence.

27. Disposal of optical discs, etc.,
where a person is charged

Without prejudice to section 20, where a person is charged with an offence under this Ordinance, the court may, if it is satisfied that--

(a) any optical disc seized, removed or detained by an authorized officer under section 18(2) in connection with the offence has been manufactured in contravention of this Ordinance; or

(b) any other thing so seized, removed or detained has been used in connection with any offence under this Ordinance,

order that the optical disc or other thing be--

(i) forfeited to the Government; or

(ii) disposed of in such other way as the court may think fit,

whether or not the person charged is convicted of the offence with which he was charged.

28. Protection of informers

(1) Save where, in the opinion of the court, justice so requires, the name or identity of any informer and the information given by such informer shall not be disclosed in any proceedings for an offence under this Ordinance.

(2) The court may make any order and adopt any procedure necessary to prevent any such disclosure.

29. Time limit for prosecutions

No prosecution for an offence under this Ordinance shall be commenced after the expiration of 3 years from the date of commission of the offence or 1 year from the date of discovery of the offence by the prosecutor, whichever is the earlier.

Miscellaneous

30. Form of applications, etc.

(1) Every application under this Ordinance shall be made to the Commissioner in such form and manner as he may require.

(2) Every application made under this Ordinance must be accompanied by--

(a) any fee applicable under Schedule 2; and

(b) a statement in writing containing such particulars as the Commissioner may require.

(3) Any application made under this Ordinance by a body corporate may be signed by any director, manager, secretary or other similar officer of the body corporate who is authorized in that behalf by the body corporate, and the Commissioner may require such proof of the authorization as he considers necessary.

(4) Any application made under this Ordinance by a partnership must be signed by each partner, and the Commissioner may require such proof of the partnership as he considers necessary.

31. Register

(1) The Commissioner shall establish and maintain a register in such form and containing such information respecting licences and approved manufacturers' codes as he thinks fit.

(2) The Commissioner shall make the register available to public inspection subject to such conditions as he thinks fit.

32. Appointment of authorized officers

The Commissioner may authorize in writing any public officer to exercise any of the powers and perform any of the duties conferred or imposed on an authorized officer by this Ordinance.

33. Protection of the Commissioner,
authorized officers and persons
assisting them

(1) The Commissioner and authorized officers are not liable for any loss or damage suffered by any person as a result of any action taken or omitted to be taken by them in good faith in the exercise of their powers or the performance of their duties under this Ordinance.

(2) Any person may act in aid of an authorized officer who appears to be lawfully engaged in the exercise of any power or the performance of any duty under this Ordinance upon being requested by the authorized officer to do so and without being bound to inquire whether or not the authorized officer is acting lawfully or within the scope of his powers or duties.

(3) A person acting in good faith in aid of an authorized officer under subsection (2) is not liable for any loss or damage suffered by any person as a result of any action taken or omitted to be taken by him while so acting.

(4) Nothing in this section shall affect any civil liability of the Government for the wrongful acts of its servants.

34. Aids in proof

(1) A certificate purporting to be certified under the hand of the Commissioner and stating whether--

(a) a person named in the certificate has or has not been granted a licence under this Ordinance;

(b) a licence granted under this Ordinance to a person named in the certificate has or has not expired or has or has not been revoked or cancelled; or

(c) the use of a manufacturer's code described in the certificate by a person named in the certificate has or has not been approved by the Commissioner under section 16,

shall be evidence of the facts stated therein as at the date of the certificate and shall be received in evidence in any proceedings under this Ordinance without further proof.

(2) A copy of any licence which purports to be certified under the hand of the Commissioner shall be evidence of the licence and of the facts stated therein as at the date of the licence and shall be received in evidence in any proceedings under this Ordinance without further proof.

(3) A copy of any approval given in writing by the Commissioner under section 16 or of any conditions imposed in writing by the Commissioner under that section and which purports to be certified under the hand of the Commissioner shall be evidence of the approval or conditions and of the facts stated in the writing as at the date of the writing and shall be received in evidence in any proceedings under this Ordinance without further proof.

35. Disclosure of information, inspection,
release of samples, etc.

Sections 126 and 128 of the Copyright Ordinance (92 of 1997) shall apply in respect of anything seized or detained under section 18(2) of this Ordinance in the same manner as they apply in respect of any article seized or detained under section 122 of that Ordinance.

36. Multilateral co-operation

The Commissioner may, for the purpose of promoting multilateral co-operation in the protection of intellectual property rights, disclose information obtained in pursuance of this Ordinance to the customs authorities or other authorities responsible for the enforcement of intellectual property rights of--

(a) any country, territory or area which is, at the relevant time, a member of the World Trade Organization; or

(b) such other country, territory or area as the Commissioner thinks fit.

37. Regulations

The Secretary for Trade and Industry may make regulations--

(a) prescribing anything required or permitted to be prescribed under this Ordinance; and

(b) for the better carrying into effect of the provisions of this Ordinance in relation to any matter.

38. Amendment of Schedules

The Secretary for Trade and Industry may by order amend Schedule 1 or 2.

39. Saving for other enactments

The provisions of this Ordinance are in addition to and not in derogation of the provisions of--

(b) any other Ordinance relating to the manufacture of optical discs.

Consequential and Related Amendments

Specification of Public Offices

40. Schedule amended

The Schedule to the Specification of Public Offices (Cap. 1 sub. leg.) is amended by adding--

"Commissioner of Customs and Excise

Customs and Excise Service Ordinance

41. Ordinances referred to in
sections 17 and 17A

Schedule 2 to the Customs and Excise Service Ordinance (Cap. 342) is amended by adding--

Administrative Appeals Board Ordinance

42. Schedule amended

The Schedule to the Administrative Appeals Board Ordinance (Cap. 442) is amended by adding--

A decision of the Commissioner of Customs and Excise under section 11 or 12 of the Ordinance.".

43. Section added

"120A. Time limit for prosecutions

44. Powers of investigating officers

Section 122 is amended--

(a) in subsection (1)(a)(i), by repealing "premises or";

(b) by adding--

"(3) An authorized officer may call upon any authorized officer to assist him in the exercise of any of his powers under this section.".

45. Section substituted

Section 123 is repealed and the following substituted--

"123. Authority to issue warrant
for entry and search

(1) A magistrate may, if he is satisfied by information on oath that there are reasonable grounds for suspecting that there is in any place any article or thing which may be seized, removed or detained under section 122(1)(b), issue a warrant authorizing an authorized officer to enter and search the place.

(2) Subject to subsection (3), an authorized officer shall not enter and search any place under section 122(1)(a)(i) except under the authority of a warrant issued under this section.

(3) An authorized officer may enter and search any place under section 122(1)(a)(i) without a warrant issued under this section if the delay necessary to obtain a warrant could result in the loss or destruction of evidence or for any other reason it would not be reasonably practicable to obtain a warrant.".

SCHEDULE 1 [ss. 2 & 38]

OPTICAL DISCS

1. CD (compact disc).

2. CD-ROM (compact disc--read only memory).

3. CD-R (compact disc--recordable).

4. CD-RW (compact disc--rewritable).

5. CD-W (compact disc--writable).

6. DVD (digital video disc).

7. DVD-ROM (digital video disc--read only memory).

8. LD (laserdisc).

9. MD (mini-disc).

10. VCD (video compact disc).

--------------------

SCHEDULE 2 [ss. 30 & 38]

FEES

Item	Matter or proceeding	Amount
		$
1.	Application for licence	5,500
2.	Application for renewal of licence	5,500
3.	Application for transfer of licence	5,500

Explanatory Memorandum

The purpose of this Bill is to require manufacturers of optical discs in Hong Kong to obtain a licence and to mark any optical discs manufactured by them with a code that indicates their source of manufacture. Schedule 1 to the Bill lists various types of optical discs to which the Bill applies.

2. Clause 2 sets out definitions and interpretative provisions relating to certain terms used in the Bill.

3. Clause 3 prohibits the manufacture of optical discs without a licence.

4. Clause 4 prohibits licensees from manufacturing optical discs at places other than licensed premises.

5. Clauses 5, 6, 7 and 8 deal with applications for licences and with the grant, amendment, renewal and transfer of licences.

6. Clause 9 requires a licensee to display the licence or a duplicate at each licensed premises.

7. Clause 10 deals with changes of information supplied by licensees.

8. Clause 11 deals with the refusal to grant or renew a licence.

9. Clauses 12 and 13 deal with the revocation and cancellation of licences.

10. Clause 14 provides for appeals to the Administrative Appeals Board.

11. Clause 15 requires manufacturers of optical discs in Hong Kong to mark them with an approved manufacturer's code and in accordance with any conditions imposed by the Commissioner of Customs and Excise.

12. Clause 16 deals with applications for and the grant of approval of a manufacturer's code.

13. Clause 17 deals with the inspection of licensed premises.

14. Clause 18 empowers an authorized officer to enter and search any place suspected of being used to manufacture optical discs in contravention of the Bill and to seize, remove or detain such optical discs and any machinery, equipment or other thing which may constitute evidence of an offence.

15. Clause 19 provides for the issue of search warrants.

16. Clause 20 provides for the forfeiture or disposal of optical discs and other things which have been seized, removed or detained by an authorized officer.

17. Clauses 21 to 29 establish offences and provide for penalties and related matters.

18. Clauses 30 to 39 deal with miscellaneous matters including the form of applications, the register, the appointment of authorized officers, the protection from liability of authorized officers and persons assisting them, the certificates which may be used in proof of offences, the disclosure of information to copyright owners and to the customs authorities of other jurisdictions, the power to make regulations and the power to amend the list of optical discs in Schedule 1 and the fees in Schedule 2.

19. Clauses 40 to 45 make consequential amendments to the Specification of Public Offices (Cap. 1 sub. leg.), the Customs and Excise Service Ordinance (Cap. 342), the Administrative Appeals Board Ordinance (Cap. 442) and the Copyright Ordinance (92 of 1997).