Identifier | Created | Classification | Origin |
---|---|---|---|
06HONGKONG4743 | 2006-12-14 09:28:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Consulate Hong Kong |
VZCZCXRO4872 PP RUEHCN RUEHGH RUEHVC DE RUEHHK #4743 3480928 ZNR UUUUU ZZH P 140928Z DEC 06 ZDK FM AMCONSUL HONG KONG TO RUEHC/SECSTATE WASHDC PRIORITY 9799 INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY RUEHJA/AMEMBASSY JAKARTA PRIORITY 1653 RUEHKL/AMEMBASSY KUALA LUMPUR PRIORITY 7117 RUEHML/AMEMBASSY MANILA PRIORITY 3170 |
UNCLAS HONG KONG 004743 |
1. (SBU) SUMMARY: On December 12, the Hong Kong Court of Appeals upheld the 2005 conviction and three-month jail sentence of a 39-year old Hong Kong man for distributing illegal copies of American films on the internet. The man used the BitTorrent peer-to-peer (P2P) file-sharing system to upload films to the internet where they could be downloaded illegally by other internet users. Local representatives of the Motion Picture Association (MPA) expressed support for the decision, noting that internet piracy is replacing optical disks as the major source of piracy in developed economies. MPA noted that last year,s conviction serves as a deterrent and explains why internet piracy is not as pressing a concern in Hong Kong as it is in other developed Asian economies. 2. (U) BACKGROUND: On October 24, 2005, a Hong Kong court convicted Hong Kong resident Chan Nai-ming of violating Hong Kong's Copyright Ordinance for distributing illegal copies of the Hollywood films "Daredevil," "Miss Congeniality," and "Red Planet" using the popular BitTorrent peer-to-peer (P2P) file-sharing software. As a first-time offender, he was sentenced to three-months in prison. This case was reportedly the first BitTorrent-related conviction in the world. At the time, local stakeholders and Hong Kong Customs and Excise Department said that the conviction offered a strong deterrent against the use of P2P software to share pirated digital content in Hong Kong. The arrest and subsequent conviction of Chan resulted, according to Hong Kong,s Commerce, Industry and Technology Bureau, in a significant drop in Hong Kong of instances of posting copyrighted materials on the internet using BitTorrent. 3. (U) During the appeal, Chan,s lawyers argued that his action of uploading copyrighted materials to the internet was different from actively &distributing8 the files to others. His lawyers stated that uploading was simply the passive act of making the material available, while those who actively downloaded the material should be held accountable as the true infringers. Lawyers also argued that the Copyright Ordinance applies only to "tangible materials," not electronic distribution of data or files. Court of Appeals Justice Clare-Marie Beeson rejected both arguments, agreeing with the lower court judge that uploading films to a public forum was a form of copyright infringement. She also concurred with the lower court that the Copyright Ordinance covers digital distribution. 4. (U) The Court also rejected Chan's contention that the three-month sentence was excessively harsh, noting that he could have received up to 4 years in prison. The judge stated that those using BitTorrent are aware of the criminal implications of uploading films and that the net harm done to the copyright owners outweighed the fact that BitTorrent uploaders do not profit from their actions. Chan began serving his prison term on December 12, but is expected to file an appeal to the Court of Final Appeal, Hong Kong,s highest court. 4. (SBU) Sam Ho of the Motion Picture Association (MPA) applauded the court,s decision, noting that MPA cooperated with the Hong Kong Intellectual Property Department on this case. He noted that internet piracy is replacing optical disk piracy as the primary form of IPR theft in the region. The Court of Appeals decision to uphold the conviction and prison sentence &helps Hong Kong combat the issue. Internet piracy now is less of a problem for Hong Kong than it is for other places in the world, particularly Taiwan, where the practice remains widespread.8 Cunningham |