In his Policy Address for this year, the Chief Executive set out his direction for the development of Hong Kong in the coming years. An important element in his vision is "to inject a new dimension and vigour into our economy by actively promoting creative industries."  

I am keen to stress the role of intellectual property protection as a tool for our economic development. Intellectual property (trademarks, patents for inventions, designs and copyright works) are inseparable from the law that protects them.

Although Hong Kong people regularly enrich our culture and art through inventions and creations, it is hard for such cultural products to generate economic growth without legal protection. It is the legal protection that converts knowledge and creativity into commodities that can be traded to generate wealth.

Likewise, a legal system to protect intellectual property is inseparable from the enforcement and educational system to promote it. Simple and effective enforcement is the key to creating a credible intellectual property system.

Public education of consumers is the key to sustainability of the system: as long as there is unending consumer demand for infringing products, more and more expensive resources have to be committed to fight piracy, counterfeiting and smuggling.

Western businesspeople have traditionally regarded Hong Kong as a centre for overseas export manufacturing activities serving European and American markets. But as Hong Kong people, we realise the size and potential for our creative industries such as television production, film and popular music.

Gradually, we are developing a reputation in computer animation, graphics and interactive game development. Our brand names are gaining a wider and wider recognition in our major trading partner, the Chinese mainland.

To maintain and support this development, Hong Kong has developed a comprehensive set of intellectual property legislation that is compatible with WTO TRIPS standards.

We have created one of the most feared anti-piracy and counterfeiting forces in Asia in the shape of the Intellectual Property Investigation Bureau of our Customs & Excise Department, and we have developed an effective public-education programme with an annual budget of nearly $7 million.

The next challenge facing us in actively promoting creative industries is to ensure that our enterprises understand and fully utilise their intellectual property assets.

Ask many businesspeople engaged in SME activities what 'intellectual property' is, and they will tell you that it is a set of rules about what we are not allowed to do, or a series of problems that we encounter in protecting our own creative assets.

Responses like this show up two flaws in perception.

We need to ensure that businesspeople �V and SMEs in particular �V have a positive perception of IP as being something that adds value to their business.

For example:

* In simple, objective accounting terms, a registered brand name is more valuable than an unregistered one.

* A brand name that is registered at the place of production and in all its overseas markets is more valuable than one that is registered in just one place.

* A patented invention is a valuable commodity while an invention without patent protection is public property.

* A registered design can add value to your products while an unregistered design invites copying by others.

* If a creative company designs a logo for an enterprise, the value of the logo will be greatly increased if the mark can meet the criteria for trade mark registration such as uniqueness and distinctiveness.

These examples illustrate the value that can be added to the books of enterprises if they fully appreciate the effective use of intellectual property. Valuable intellectual property needs proper registration in all markets and formulation of an effective strategy to protect it.

The second flaw in perception is that you wait until something goes wrong before you formulate a strategy to protect it.

In his 'Art of War', Sunzi said: "To be effective in warfare, you must take the initiative, not be on the defensive". That is certainly the best strategy for intellectual property protection. We need to prepare enterprises to position themselves to exploit and protect their intellectual property in the most effective way.

For example, it is the norm worldwide that copyright works do not need to be registered. But in the face of continued risks of piracy it is vital to be prepared to go to court to protect one's rights. That means being ready with evidence that the author is the original author of the copyright work, and when the work was created.

In Hong Kong we have achieved much in enacting modern legislation to protect intellectual property and setting up effective enforcement systems. However, we still have some challenges ahead of us in bringing about the Chief Executive's vision.

The creative talent of Hong Kong is ready and waiting, and the tools of intellectual property are in place.