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Viewing cable 06HONGKONG2180, HKG Responds to BSA Study Corrected Copy

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Reference ID Created Released Classification Origin
06HONGKONG2180 2006-05-25 06:34 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Hong Kong
VZCZCXRO6994
RR RUEHCN RUEHGH
DE RUEHHK #2180 1450634
ZNR UUUUU ZZH
R 250634Z MAY 06
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC 6898
INFO RUEHOO/CHINA POSTS COLLECTIVE
UNCLAS HONG KONG 002180 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS DOJ 
DOJ FOR ASHARRIN 
STATE PASS USPTO 
USPTO FOR TBROWNING 
STATE PASS USTR 
USTR FOR VESPINEL 
STATE FOR EB/EFELSING 
BEIJING FOR MCOHEN 
BANGKOK FOR CSONDERBY 
THIS CABLE SUPERSEDES HONG KONG 2168 
 
E.O. 12958: N/A 
TAGS: KIPR ECON CH HK
SUBJECT:  HKG Responds to BSA Study Corrected Copy 
 
SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT ACCORDINGLY. 
 
1. (SBU) Summary: Intellectual Property Department (IPD) 
Deputy Director Peter Cheung said that the Hong Kong 
Government (HKG) was surprised by the negative results of 
the Business Software Alliance (BSA) annual software piracy 
survey, which reports that Hong Kong's software piracy rate 
increased from 52 to 54 percent in 2005.  Cheung said that 
the HKG was sensitive to the results and was planning to 
launch a new package of intellectual property rights (IPR) 
initiatives, including a publicity campaign that will be 
coordinated with the Customs and Excise Department.  Cheung 
opined that the study results would also bolster voices in 
the Legislative Council (Legco) that are arguing for more 
powerful language as Hong Kong deliberates amendments to its 
Copyright Ordinance.  The BSA study places Hong Kong as one 
of 19 economies that registered an increase in software 
piracy rates, as opposed to 51 economies where there was a 
decline, including Mainland China, which had a 4 percent 
drop.  Hong Kong Chairperson Belinda Lui told Econoff that 
the official unveiling of the study was moved to Hong Kong 
this year to reflect the BSA's "extreme disappointment" with 
Hong Kong's results.  End Summary. 
 
The BSA Report and The HKG Response 
------------------------------------ 
 
2. (SBU) On May 23, 2006, the BSA released the results of 
its third annual survey on software piracy.  The survey, 
which is conducted by market research firm IDC and is the 
largest survey of its kind, reports that Hong Kong's 
software piracy rate increased from 52 percent to 54 percent 
in 2005.  IPD Deputy Director Peter Cheung told Econoff that 
he was shocked by the negative results of the survey and 
that the HKG would be actively seeking ways to crack down on 
software piracy overall and business end-user software 
piracy in particular. 
 
3. (SBU) Cheung opined that the survey results would also 
weigh heavily on the minds of Legco members currently 
deliberating proposed amendments to the Copyright Ordinance. 
The survey results may weaken opposition to a proposed new 
clause in the Ordinance that would specifically pin 
liability for corporate copyright violations upon the 
directors or partners of the company. Cheung said that on 
May 29 the HKG would officially launch a new publicity 
campaign aimed at raising public awareness of IPR issues. 
The campaign, which is being coordinated by the Commerce, 
Industry, and Technology Bureau (CITB) with IPD and Hong 
Kong Customs, will focus on online IPR violations as well as 
other forms of digital piracy. 
 
Regional Picture 
----------------- 
 
4. (SBU) Hong Kong's rising software piracy rate contrasts 
with improved figures for other regional economies, 
including Singapore (from 42 percent to 40 percent), 
Malaysia (from 61 percent to 60 percent), and mainland 
China, which dropped from 90 percent to 86 percent.  BSA 
Hong Kong Chairperson Belinda Lui said that while the 
overall software piracy rate in China remains high, the 2005 
results show that the country is moving in the right 
direction.  She expects the mainland will probably see 
another drop next year as it moves to ban the use of pirated 
software by government departments and as PC manufacturers, 
such as Lenovo, adhere to commitments to pre-install only 
legitimate software into new models. 
 
5. (SBU) Lui continued that although Hong Kong has an 
overall effective enforcement regime, the HKG's continuing 
inability to win contested prosecutions in business end-user 
piracy cases contributed to the increase in the piracy rate. 
She said that BSA decided to move the official unveiling of 
the study to Hong Kong to emphasize its view that Hong Kong 
is moving in the wrong direction on IPR protection. 
 
CUNNINGHAM