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Subject: Re: Sony Mitsubishi ERG AES Prodata Hong Kong.


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Date Posted: 00:00:20 01/30/03 Thu
In reply to: Sony Mitsubishi ERG AES Prodata Hong Kong. 's message, "Sony Mitsubishi ERG AES Prodata Hong Kong." on 23:58:16 01/29/03 Wed


Telecommunications

In Hong Kong's telecommunications sector, smart cards have
primarily been used as GSM subscriber identification modules
(SIMs). The development and growth of GSM digital mobile
telecommunications over the last few years has been dramatic.

Hong Kong's mobile telephone market has experienced a remarkable
growth in the past few years, as evidenced by the statistics
below.

Mobile Telephone Subscriber Units

Subscribers % Increase

1994 431,775 /
1995 687,600 60
1996 1,210,680 77
1997 1,600,000 33
1998 1,800,000 12.5
2000 2,500,000 /

In 1996, Hong Kong's mobile telephone penetration rate was
12.69%. Since that time, the increase in penetration has been
dramatic as both service and handset prices have fallen sharply.
The latest estimates show a 33% penetration rate, and by the year
2000, the penetration rate will likely rise to 48%, which
represents approximately 3.2 million mobile phones in the market.
As a result of the continued expected rapid expansion of the
mobile telephone market, smart card sales for applications in the
telecommunications sector will climb steadily. In addition to
SIM applications, telecommunications companies and banks are also
teaming up to provide multi-functional smart card. For example,
the local mobile telephone company SmarTone and the Standard
Chartered Bank launched a co-branded credit card, the SmarTone
Smart Credit Card in August 1997, whereby mobile telephones have
a portable automatic teller machine function. This joint program
is the first of its kind in Hong Kong. Other functions, such as
the reloading of Mondex or VisaCash via mobile phones are also
available.

Financial Applications

The electronic purse application, used by Hong Kong's banking
community, is the most prevalent smart card application in Hong
Kong today. Both Visacash and Mondex have rolled out commercial
electronic purse systems this year. Smart cards used in this
application are contact reloadable card embedded with
microprocessor. This type of card contains a microprocessor to
execute a program stored inside the same silicon chip, so that it
can make decisions based on external input. Microprocessor cards
are the real smart cards and are used in banking, finance and
other applications where high security is essential.

The Mondex card system, offered by both the Hong Kong & Shanghai
Bank and Hang Seng Bank, is a reloadable smart card. The Hong
Kong & Shanghai Bank and the Hang Seng Bank claim to have issued
100,000 cards and to have more than 6,000 merchants prepared to
accept Mondex. On the other hand, the Visa Cash system offers
both disposable cards, launched in early 1997, and reloadable
cards offered in August 1997. These cards can be obtained in the
Bank of China, Standard Chartered Bank and the Bank of East Asia.
According to Visa Cash, 150,000 reloadable cards and 130,000
disposable cards card have been issued, and there are 2,000
points of acceptance in Hong Kong.

Once the point of sales infrastructure has matured, the potential
for electronic purse systems is enormous, as the majority of
payment transactions are still handled by cash in Hong Kong. The
electronic purse system currently available in the market
consists of off-line, unaccountable stored-value systems, where
the record of value is maintained only on the card itself, and
not at a financial institution or a central database. Other
examples of this type of card include photocopier cards and mass
transit railway systems.

A different kind of financial smart card is the on-line stored
-value system, which operates like a debit card to access a
traditional deposit account. This type of system involves
on-line access to a data base for transaction authorization and
data capture.

Loyalty Projects

Asia Chip Card and Hypercom, Inc. have announced that their smart
cards and terminals, network and system software are being used
in the Hutchison Whampoa and Overseas Trust Bank (OTB) smart card
loyalty project in Hong Kong. Card holders are able to
accumulate and redeem bonus points at all 300 Hutchison-owned
retail stores, which include one of the two major supermarket
chains in Hong Kong.

One of the largest real estate developers, Sun Hung Kai (SHK) is
developing a residential membership smart card system for its
real estate residents. SHK's smart card system aims to
incorporate different functions into their residential card,
including parking, electronic purse, Internet booking of club
facilities, credit card, shuttle bus and residence
identification. The system is being launched in two pilot sites
of SHK, the Woodland Crest and East Point City residential
complexes.

Government Project: Smart Card-Operated Parking System

The Hong Kong Government Transport Department is in the first
phase of replacing all coin-operated mechanical parking meters
(EPM's) with smart card-operated electronic parking devices
(EPD's) and to install smart card operated electronic payment
terminals (EPT's) and pay-and-display machines (PDM's) at its 14
multi-storey car parks. The supply and installation contract for
the Smart Card Operated Parking System (SCOPS) were granted to
Hong Kong Parking Limited which sub-contracted the smart card
portion of the contract to Schlumberger early this year.

The project will use a disposable contact hardwired logic card on
a prepaid credit basis and will not require cash transactions on
site. The first phase of the project, completed in April 1998,
involved the replacement of 3,500 on-street mechanical parking
meters. The second phase, which is anticipated to be completed
by the end of 1998, will involve the replacement of the remaining
10,000 mechanical on-street parking meters. The Transportation
Department predicts 1 million smart card in circulation, for this
purpose when the project is completed.

The potential for new smart card applications in Hong Kong is
unlimited as Hong Kong population's is very open to innovative
solutions and real-world applications. Many smart card system
consultants are working on different projects for smart card
applications. A MasterCard survey in Asia Pacific with leading
bankers found that 65% of bankers expect smart cards to be
widespread in the region by 2001. According to industry
observers, the Asia Pacific card market is likely to grow by 600%
over the next 10 years and most of the growth will come from the
adoption of multi-function microprocessor card.


D. MARKET ACCESS

Import and Export Regime

Hong Kong is a free port and one of the world's best examples of
an "open market economy". The Hong Kong Government pursues
economic policies of non-interference in commercial decisions,
low and predictable taxation, government spending increases
within the bounds of real economic growth, and competition
subject to regulation and law. Market forces determine wages and
prices with price controls limited only to certain
government-sanctioned monopolies in the service sector. There
are no restrictions on foreign ownership of capital, nor are
there export performance or local content requirements. Profits
can be freely repatriated. These policies have spurred high
rates of real growth, low unemployment, rising wages, and an
overall steady increase in standard-of-living judged in economic
terms.

Hong Kong is a member of GATT in good standing, and is a founding
member of the WTO as well as a member of APEC. There is no
legislation or practice which restricts access to the Hong Kong
markets by foreign exporters or which mandates preference for
locally manufactured products. Hong Kong companies (and the Hong
Kong Government itself) do not have any predisposition to any one
supplier -- and are far more inclined to purchase based on the
terms of price, delivery, quality and service. Technical and
safety standards are not used as a political or trade control
mechanism, and they are normally accommodated with little
difficulty.

The Hong Kong Government levies no import tariffs. However,
domestic consumption taxes (referred to as duties in Hong Kong)
are imposed on a small number of goods, including tobacco,
alcoholic beverages, methyl alcohol and some fuels. These taxes
are levied equally on local manufactures and imports.

The Hong Kong Government imposes restrictions on the export of
high-technology products to countries proscribed under the former
COCOM regime, including the People's Republic of China.
Restrictions on trade with China were relaxed significantly by
the United States in 1991, allowing Hong Kong to re-export to
China on a more liberal basis. Textiles are subject to import
and export licensing because of Hong Kong's obligations under
agreements with the US and other countries. Hong Kong's export
control system has not changed as a result of Hong Kong's July 1,
1997 reversion to Chinese sovereignty. Additionally, Hong Kong's
status with regard to access to controlled U.S. technologies has
not been altered as a result of reversion.

Useful contact for inquiring about specific products:

Customs and Excise Department
8th Floor, Harbour Building
38 Pier Road
Central, Hong Kong
Tel: (852) 2852-3324
Fax: (852) 2541-9827 (Dutiable Commodities Division)


Guidelines for Selecting and Working with an Agent or Distributor
in Hong Kong

One of the best ways to sell products in the Hong Kong market is
through the use of agents or distributors. It is also an
excellent way of minimizing the initial investment in the market.
As outlined below, there is a wide range of companies which can
serve as agents or distributors for U.S. firms. Other options for
pursuing Hong Kong's market are establishing an office or
partnering. Companies looking to sell equipment needing long
term maintenance or technical support or installation or who are
seeking to become involved in infrastructure projects frequently
seek to partner with local companies.

Working with agents and distributors in Hong Kong is very much
like working with an agent in the United States. An agent takes
orders in the supplier's name. Distributors act in their own
name and may stock products purchased from the manufacturer for
resale. The choice depends on the relationship with which the
manufacturer/supplier is most comfortable and the nature of the
business.

Hong Kong has no special legislation regarding agents and
distributors. Virtually anything which both sides can agree to
and put into a written contract is acceptable and enforceable,
including restrictions on territory and a grace period for
termination of the agreement. While not required by Hong Kong
law, the more complex the contract, the more helpful it is to
have legal counsel. Items that should be considered for
inclusion in a contract include:
- Discussion of exclusivity and sales territories
(always a sensitive issue; business people should be careful
about granting an exclusive agency too soon or in too large a
territory if the agent is to cover beyond Hong Kong.)

- Discussion of proprietary information (theft of intellectual
property is prohibited by local law, but prevention of piracy is
always less expensive and more effective than post-facto legal
action.)

- Levels of sales activity -- set specific targets and goals to
qualify for maintaining or renewing the agreement

- Time duration

- Payment terms

- Quality control -- inspection -- verification

- Rule of law -- jurisdiction in the US vs. Hong Kong
(It is generally Hong Kong, but another location may be
specified -- for arbitration, for example.)

- Covenants restricting activity following cancellation
of the contract.

There are many types of agents and distributors in Hong Kong,
ranging from those who simply stock retail stores with standard
items to agents who provide sales, engineering and technical
support for complex systems. It is common for a single company
to deal in a wide variety of products in a particular sector.
Agents and trading companies may be less specialized than
companies in a large economy like the US, but the best ones are
focused and have contacts in a general line of business.
One area that FCS has seen as troublesome for Americans in their
business relationships in Hong Kong is the American businessman's
perception of the loyalty of their local representative. US
firms complain that as soon as they get an agent trained, he/she
drops them for a competitor's product, taking the client list
with them.

FCS Hong Kong offers the following advice and suggestions to
prevent this from happening. Most basic is the need to see the
relationship from the agent's viewpoint, and to take actions
which will make you and your product of maximum value and minimum
bother and expense:

a. A major sore point with Hong Kong reps/distributors is the
American suppliers' failing to see the difference between
business development (marketing) and selling. Local reps have
little problem with paying commissions, but have a serious
problem paying business expenses (samples, technical assistance,
warranties). We recommend that the U.S. suppliers consider
paying these expenses directly. That's what most of your
competition is doing.

b. Respect the Hong Kong people's attitude toward time. The
pace is very fast, and business deals that take more than 24
hours to complete can be considered slow and therefore of low
priority. Respond immediately to all faxes and phone calls.
Your speed of response will be a major factor in building
credibility.

c. Keep in mind that space in Hong Kong is extremely expensive.
This affects everything from manufacturing to retailing. For
every step of business in Hong Kong, the question you must be
able to answer is "how will the use of your product/service help
to make money for the Hong Kong agent/distributor?"

d. The Hong Kong Government is extremely laissez faire. It has
few environmental laws, safety laws, child worker laws, product
performance laws, etc. Conclusion: sell on economics, not
legislation (as per c above).

e. Remember that the Hong Kong agent has many options to choose
from in addition to yourself: Australians, Europeans, Japanese,
Singaporeans, Chinese, and so on. You must make it as easy for
your Hong Kong partner as possible to deal with you:

- Quote in metric

- Quote on a delivered basis to Hong Kong (not F.O.B.)

- Use 220v, 50hz

- Spell out the name of your state on your business card;
include a fax number with an area code; put "USA" into every
address that you use.

(6) By following these steps you can find, as have hundreds of
other American companies, that working with an agent or
distributor in Hong Kong is an effective way of doing business.

Key Contacts:

Mr. Greg Pote, General Manager
The Asia Pacific Smart Card Association
Room F, 6th Floor,
1 Fleming Road, Hong Kong.
Tel: 852-2591-9481
Fax: 852-2834-9748
Email: hbi@hk.linkage.net

Mr. Stephen Cheung
General Manager, Electronics Division
HKPC Building, 78 Tat Chee Avenue,
Kowloon, Hong Kong.
Tel: 852-2788-5788
Fax: 852-2788-5770
Email: scheung@hkpc.org

Mr. Anthony Lam, Director
Hong Kong Electronic Industries Association Ltd.
Room 208-9 Hong Kong Industrial Technology Center
72 Tat Chee Avenue, Kowloon, Hong Kong.
Tel: 852-2778-8328
Fax: 852-2788-2200
Email: hkeia@hkeia.com
Web Site: www.hkeia.com

Mr. Alexander Chung, General Manager
Gemplus Technologies Asia PTC Ltd.
Unit 1085, H.K. International Trade and Exhibition Center,
1 Trademart Drive, Wang Chin Street,
Kowloon Bay, Kowloon, Hong Kong.
Tel: 852-2620-1491
Fax: 852-2799-5575
Email: alex.chung@ccmail.edt.fr

Mr. Jeffrey Wong, General Manager
City Smart Limited
1508 Beverly House,
93-107 Lockhart Road,
Wanchai, Hong Kong.
Tel: 852-2934-6238
Fax: 852-2834-6100
Email: citysmt@hkstar.com

Miss Shirley Ng
Schlumberger Technologies (Asia) Ltd.
Suite 1803-6, Tower II,
The Gateway, Harbour City,
25-27 Canton Road,
Kowloon, Hong Kong.
Tel: 852-2956-3331
Fax: 852-2956-3457

Mrs. Agnes Mak, President
Hong Kong Computer Society
Unit D, 1/F., Luckifast Building,
1 Stone Nullah Lane,
Wanchai, Hong Kong.
Tel: 852-2834-2228 Fax: 852-2834-3003

Getting Paid

The preferred method of quoting is "CIF" or "C and F" in HK$.
U.S. and other freely convertible currencies may be accepted for
bids and pro forma invoicing.

Terms of payment depend on the relative negotiating strength of
the buyers and sellers. U.S. suppliers should seek to obtain
letters of credit or sight draft terms when dealing with buyers
who are not well known to them. Asking for a letter of credit is
a standard business practice, and your potential customer will
not interpret this as a sign of mistrust.

Hong Kong is one of the region's leading financial centers. By
the end of 1997, Hong Kong had 180 licensed banks (149 were
incorporated overseas), 66 restricted licensed banks (27 were
incorporated overseas), 115 deposit-taking institutions (2 were
incorporated overseas), and 159 representative offices (all were
set up by foreign banks). Thirty-two American "authorized
financial institutions" operate in Hong Kong, including 7 of the
top 10 U.S. banks. Most banks in Hong Kong maintain U.S.
correspondent relationships. Letters of credit, document
collection and international remittance are widely available.
All licensed banks are authorized to provide loans to residents
and nonresidents. The risk of financing receivables can be
readily evaluated via locally available credit information.
Prospective exporters should make use of banking relationships to
determine credit risk.

The importance of trade finance to the territory has resulted in
a high level of bank efficiency in providing import payment
services. The local currency, the Hong Kong dollar (HK$), is
freely convertible and there are no regulations that hamper
inward or outward remittance of capital or profits. Currently
the HK$ is pegged at 7.8 to the US$ and has fluctuated little
since the inception of the linked rate policy in 1983.


Selling to the Hong Kong Government

The Government Supplies Department (GSD) is the central
purchasing, storage and supply organization for the Government of
the Hong Kong Special Administrative Region, serving over 80
government departments and certain non-government organizations.
The GSD normally purchases by open tender, with decisions based
on compliance with tender specifications, competitiveness in
price, back-up service and delivery. The GSD gives no preference
to any particular source of supply from any country or
organization. The GSD spent US$549 million in 1997, with
American products winning around 26% of the total procurement
contracts (about US$141 million). Hong Kong joined the WTO
Agreement on Government Procurement in June 1997. As of May
1998, the Government of the Hong Kong Special Administrative
Region was in the process of establishing a Bid Challenge System
consistent with the WTO's Government Procurement guidelines.

Invitations to open tender are published in the Government of the
Hong Kong Special Administrative Region Gazette and in selected
Hong Kong newspapers. Tender notices are also published on the
Internet on the GSD Home Page (http://www.info.gov.hk/gsd).
Tenderers usually have about six weeks to prepare their offers.
Tenders normally have a 90-day validity period unless otherwise
indicated. Payment is usually effected by check or telegraphic
transfer within 30 days upon acceptance of the goods. Contract
awards with the names of successful tenderers and contract sums
are published monthly in the Government Gazette and on the
Internet.

For information about a subscription to the Government of the
Hong Kong Special Administrative Region Gazette contact:

Information Officer
Publications Sales Section
Information Services Department
28th Floor, Siu On Centre
188 Lockhart Road
Wanchai, Hong Kong
Tel: (852) 2598-8197
Fax: (852) 2598-7482

The GSD maintains lists of registered suppliers for issuing
tender invitations. Any company not currently registered with
the GSD wishing to be considered for inclusion in these lists may
apply in writing to the Director of Government Supplies.
Companies are required to provide basic information about their
organizations and the goods they offer, such as the business
registration certificate, company profile, annual report and
product catalogues. The GSD evaluates this information and those
companies that are found acceptable will be included on the
lists.

The U.S. & Foreign Commercial Service at the US Consulate General
in Hong Kong office regularly reports on government tenders which
are available via the NTDB. For information call the U.S.
Department of Commerce at 1-800 stat-usa.

Companies seeking more information on the GSD are encouraged to
contact:


The Director of Government Supplies
Government Supplies Department
10/F, North Point Government Office
333 Java Road
North Point, Hong Kong.
Tel: (852) 2231-5100
Fax: (852) 2510-7904
http://www.info.gov.hk/gsd


Trade Promotion Activities

Many promotional vehicles are open to suppliers to introduce and
develop their services in the Hong Kong market. These include:

- special trade fairs and exhibitions
- advertising in the media and other public relations
activities
- holding seminars
- in-store promotions
- joint promotions with wholesale and retail outlets

Hong Kong is a major conference and exhibition center. Hundreds
of international exhibitions are held annually. The Hong Kong
Conference and Exhibition Center (operated by the quasi
governmental Hong Kong Trade Development Council), has
approximately 500,000 square feet of exhibition space, including
300,000 square feet added in a major expansion completed in the
summer of 1997. A privately built facility, the International
Trademart, opened in Kowloon Bay in early 1996 with 158,000
square feet of exhibition space. Television is a widely used
medium with an estimated daily audience of 5.27 million out of a
population of 6.5 million. Hong Kong Television also reaches
much of neighboring Guangdong Province in China, where it is very
popular.

As one of the largest centers in the world for Chinese language
publications, the territory produces almost 700 publications,
including some 60 Chinese newspapers, approximately 625
periodicals, and 2 English daily newspapers. Advertising
agencies, including many of international standing, offer a full
range of services.

Suppliers should provide technical catalogs in English, and
desirably in Chinese, for distribution to agents and firms.
Company brochures are particularly useful when visiting Hong Kong
for the first time. English-Chinese business cards are also
helpful.


Conferences and exhibitions scheduled within the next 24 months
include:

ECA The 10th International Electronic Component Exhibition for
Asia.
July 23-26, 1998
Hong Kong
Tel: 852-2865-2633; Fax: 852-2866-1770
Contact: Mr. Arthur Tang, Director

Asian IT Expo '98 (Annual event 1998-2007)
Sept. 16-19, 1998
Hong Kong
Tel: 852-2811-8897; Fax: 852-2516-5024
Contact: Mr. Stanley Chu

COMPUTER The 14th International Computer Expo (Annual event
1998-2007)
May 7-10, 1998
Hong Kong
Tel: 852-2865-2633; Fax: 852-2866-1770
Contact: Mr. Arthur Tang

CARDS NORTH ASIA 1998
Nov. 1998
Hong Kong
Tel: 65-222-8550; Fax: 65-224-6328
Contact: Mr. Tommy Koh

Asia & South Pacific Design Automation Conference and Exhibition
Jan. 18-21, 1999
Hong Kong
Tel: 852-2788-7705; Fax: 852-2788-7791
Contact: Dr. Richard Chen


Trade Journals:

Asia Computer Weekly (ACW)
Miller Freeman (HK) Ltd.
738 King's Road,
Room 102-5 Stanhope House,
Quarry Bay, Hong Kong.
Tel: 852-2805-5661; Fax: 852-2960-0977

Computer World
303, 3/F., Eastern Harbor Center,
28 Hoi Chak Street,
Quarry Bay, Hong Kong.
Tel: 852-2805-5335; Fax: 852-2562-8599

IT Asia
Newsources Investments Ltd.
1501 Shiu Lam Bldg., 23 Luard Road,
Wanchai, Hong Kong.
Tel: 852-2528-4808; Fax: 852-2865-6832


Protecting your product from IPR Infringement

The best protection for an American company is to aggressively
market in Hong Kong. By using a good local agent, American
manufacturers or suppliers can make their product legally
available. Dealers have a strong incentive to stop any piracy,
and with good local connections, have a better chance of making
that happen than an American company which is not actively
participating in the market. The chief law enforcement body for
Intellectual Property Rights (IPR) is the Hong Kong Customs and
Excise Department. However, protecting copyrights or trademarks
takes vigilance, and even with the U.S. Government vigorously
pressing Hong Kong on this issue, enforcement is still dependent
on reporting incidents of product piracy to the authorities and,
in some cases, providing evidence in court. For more information
on intellectual property legislation and registration, see the
following paragraphs.

Protection of Property Rights

Hong Kong's commercial and company laws provide for effective
enforcement of contracts and protection of corporate rights. The
Intellectual Property Department, which includes the Trademarks
and Patents Registries, is the focal point for the development of
Hong Kong's intellectual property regime. The Customs and Excise
Department is the principal enforcement agency for intellectual
property rights (IPR). While the Hong Kong Government has taken
significant steps to improve its intellectual property rights
regime and enhance enforcement efforts, production and retail
sale of pirated software, recordings, and films remain serious
problems. As a result, the United States Trade Representative
again placed Hong Kong on the Special 301 Watchlist in 1998.

1997 saw a dramatic increase in factories producing compact
discs, including pirated compact discs, in Hong Kong. Industry
estimates the number of production lines at well over 100 and
possibly as many as 250. The Hong Kong government responded by
instituting a licensing regime for the import and export of
production equipment and by passing a new law that requires
factories to register and use source identifier codes.

This new legislation should enable enforcement authorities to
gain control over illicit production by the end of the year.
Meanwhile, authorities have stepped up seizures of production
equipment and pirated compact discs. In a dramatic raid in late
April, 1998, officials seized 41 production lines and some 8
million pirated compact discs.

The Customs and Excise Department, which has a special IPR unit
with over 200 investigators, has also stepped up raids against
retail shops selling pirated goods. Using new enforcement tools
from the June 1997 Copyright Law, Customs officers have been able
to substantially increase seizures of pirated goods. Although
aggressive raids have curtailed activity at the three most
notorious retail centers, pirated goods remain widely available
in a number of other retail arcades.

Hong Kong successfully localized its intellectual property laws
to ensure the maintenance of a strong legal regime after the July
1997 reversion to China. Protection continues under both local
laws and international conventions, which continue to apply to
Hong Kong. Hong Kong has acceded to the Paris Convention for the
Protection of Industrial Property, the Bern Convention for the
Protection of Literary and Artistic Works, and the Geneva and
Paris Universal Copyright Conventions. Hong Kong also continues
to participate in the World Intellectual Property Organization,
as part of China's delegation.

The new copyright law protects any original copyright work
created or published by any person anywhere in the world. It
provides for rental rights for sound recordings and computer
programs but not films. It provides for enhanced penalty
provisions against copyright piracy and additional legal tools to
facilitate enforcement. It decriminalizes parallel imports of
copyrighted products one year after their release anywhere in the
world, but maintains civil penalties. Registration is voluntary.

The patent ordinance, approved in June 1997, allows for granting
of an independent patent in Hong Kong based on the patents
granted by the UK be independent, and would be capable of being
tested for validity, rectified, amended, revoked and enforced in
the Hong Kong courts in accordance with Hong Kong law. Based on
the law, Hong Kong has established an independent patents
registry. Continuity is preserved so that pre-existing patents
eligible for protection continue to enjoy protection in Hong
Kong.

The new registered designs ordinance is modeled on the proposed
EU design registration system, with certain modifications. To be
registered, a design must be new. The system requires no
substantive examination. Protection will be for an initial
period of five years, and may be extended for four periods of
five years each, up to a maximum of 25 years.

Hong Kong's existing trademark law is not dependent on that of
the UK, and so does not need to be "localized." The law is
already TRIPS-compatible, and is in the process of being
modernized. All trademark registrations originally filed in Hong
Kong are valid for seven years and renewable for 14-year periods.
Proprietors of trademarks registered elsewhere must apply anew
and satisfy all requirements of Hong Kong law. When evidence of
use is required, such use must have been in Hong Kong.
Trademarks are registered under the Trademarks Ordinance, with
provisions similar to trademarks legislation in the United
Kingdom. The Trademarks (Amendment) Ordinance, which came into
effect in 1992, extends the trademarks law to allow for
registration of trademarks relating to services.

Hong Kong has no specific ordinance to cover trade secrets.
Under the Trade Description Ordinance, however, the government
has the duty to protect the information being disclosed to other
parties. The Trade Description Ordinance prohibits false trade
descriptions, forged trade marks and misstatements in respect of
goods supplied in the course of trade.

The Legislative Council passed an Intellectual Property (World
Trade Organization Amendment) bill in May 1996 to fulfill Hong
Kong's international obligation as a WTO member. The bill
expanded the definition of what can be trademarked, provided new
anti-piracy tools to the Hong Kong Government and provided for
civil detention orders at the border to stop import of infringing
product. The Hong Kong Government has claimed a developing
country status exemption to the Trade-Related Intellectual
Property requirements of the World Trade Organization. In
theory, this gives Hong Kong five years to phase in the
requirements.

The Government has committed, however, to meeting the
requirements well within that period.

Useful contacts:

Director of Intellectual Property
15th Floor, Queensway Government Offices
66 Queensway
Central, Hong Kong
Tel: (852) 2867-2817
Fax: (852) 2375-7375 (TM & Patent Registries)
(852) 2736-8297 (Headquarters)

The Intellectual Property Department also has a web page, at

http://www.houston.com.hk/hkgipd/

Also Chairman
Intellectual Property Committee
The American Chamber of Commerce in Hong Kong
Room 1904, 19/F, Bank of America Tower
12 Harcourt Road
Central, Hong Kong
Tel: (852) 2526-0165
Fax: (852) 2810-1289


Standards

Few product safety standards are required for the domestic Hong
Kong market. What little there are relate to fire control (gas
and electricity) in the city's high rise buildings. One
exception is an ordinance which does not accept U.S. safety
standards for certain baby products. Other standards of quality
and safety control imposed on domestic manufacturers are for
goods made for export or re-export outside Hong Kong. Currently,
building materials and electrical/mechanical supplies have to
meet British standards. However, Hong Kong is gradually
recognizing other standards so US companies seeking to export to
Hong Kong check with potential agents and customers to determine
exact standards required.

Another guideline to use regarding quality control is the "ISO
9000" series, published by the International Organization for
Standardization (ISO). These standards, now in the process of
being adopted in Hong Kong via the Hong Kong Quality Assurance
Agency, provide a framework for all types of manufacturing
industries. The Hong Kong Housing Authority has also adopted ISO
9000 for all of its consultants/contractors, and the Works Branch
has extended ISO 9000 to engineering and architectural
consultants as of April 1, 1996. The Airport Authority also
requires suppliers and contractors to conform to ISO 9000.

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