Hong Kong Forum Explores IP Challenges and Opportunities in E-commerce and Digital Dispute Resolution

Speech by DSJ at Business of IP Asia Forum 2024 Breakout Session

Following are the welcome remarks by the Deputy Secretary for Justice, Dr Cheung Kwok-kwan, at the Business of IP (Intellectual Property) Asia Forum 2024 Breakout Session "IP and Dispute Resolution in the Digital Era: Embracing Challenges and Seizing Opportunities in E-commerce" today (December 6):

Distinguished guests, ladies and gentlemen,

Good afternoon. It gives me great pleasure to welcome you all to this thematic Breakout Session co-organised by the Department of Justice and the Hong Kong Trade Development Council.

The exponential growth of e-commerce in recent years has brought revolutionary changes to the global retail landscape by shifting physical retail stores to online platforms and operations and bringing shopping experiences to consumers' fingertips via computers and mobile devices. Whilst e-commerce offers unparalleled convenience to customers, the rise of online shopping platforms and digital marketplaces has brought about numerous challenges in the realm of intellectual property. Later this afternoon, our distinguished speakers will take us through the common pitfalls and potential IP infringement issues arising from the use of e-commerce platforms, and address how these issues can be tackled and resolved.

Artificial intelligence technologies are also increasingly being deployed in e-commerce platforms these days. Creative works and innovations generated by AI applications often challenge the traditional notions of authorship and inventorship, thereby posing new perspectives in identifying, tracking down infringers and enforcing IP rights against such AI-generated infringing content. These all could add another layer of complexity to resolving IP disputes.

In this regard, the Government has made every effort to ensure that our local IP protection regime remains robust and up-to-date. For instance, recognising the critical role of copyright protection in innovation and creativity, the Intellectual Property Department has launched a two-month public consultation on the enhancement of the Copyright Ordinance (Cap. 528) regarding the protection of AI technology development and copyright infringement liability for AI-generated works. The Chief Executive's 2024 Policy Address also stresses that the Government will set out the way forward for further enhancement to the Copyright Ordinance in the coming year.

International and Mainland co-operation

Apart from ensuring that our domestic IP laws align with the ever-evolving international norms and technological developments, Hong Kong also maintains close co-operation with the international community in this respect. Up to date, 10 main international IP conventions have been applied to Hong Kong by Mainland China, providing international IP protection to creators.

As we all know, e-commerce platforms generally operate across different continents, enabling vendors to merchandise their products to customers worldwide. The global nature of these platforms makes it notably difficult to identify and locate infringing sellers and enforce IP laws consistently, particularly when they are based in jurisdictions with weak IP enforcement mechanisms. International IP conventions that aim at harmonising the global copyright protection practice, such as the Berne Convention and the World Intellectual Property Organization, WIPO, Copyright Treaty, apply to Hong Kong. These provide effective solutions to the cross-border IP issues and dispute resolution in the digital era.

In addition, being a member of the World Trade Organization (WTO), Hong Kong is a signatory to the WTO TRIPS Agreement. Our IP protection regime is fully compatible with our international obligations and conforms to international standards on the protection of IP rights.

On the Mainland front, the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) fully supports Hong Kong to develop into a regional IP trading centre. In this respect, Hong Kong is enhancing collaboration with the Mainland authorities and actively implementing measures to promote IP trading and professional services in the GBA.

For example, the Commerce and Economic Development Bureau and the Qianhai Authority jointly promulgated 16 Co-operation Measures for the Development of the Qianhai Shenzhen-Hong Kong Intellectual Property and Innovation Hub in February last year. These Co-operation Measures aptly cover IP protection and IP training, which aim at jointly promoting IP development in Hong Kong and Shenzhen, and fostering cross-boundary innovation, exchanges and co-operation.

Dispute resolution

Turning to dispute resolution, Hong Kong is well positioned to provide first-class IP dispute resolution services. It is immensely encouraging that in the latest World Competitiveness Yearbook 2024, Hong Kong is ranked eighth globally on the criterion of "IP rights". Furthermore, in the recent World Bank Group Business Ready 2024 Report, Hong Kong ranks eighth in the topic of "Dispute Resolution" among the 50 economies covered. It is evident that both our IP protection regime and dispute resolution services are well recognised and celebrated among the international legal community.

In terms of litigation, since May 2019, the High Court's Court of First Instance has had an IP Specialist List to hear IP cases, including interlocutory applications and trials.

Another significant recent development that I wish to highlight is the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the HKSAR concluded in 2019, which has come into operation in both places in January this year. This arrangement goes beyond the Hague Judgments Convention by not only covering a wide range of judgments on contractual and tort disputes, but also expressly covering judgments given in respect of certain types of disputes over IP rights. This Arrangement effectively reduces the need for re-litigation of the same disputes in both places and provides a more cost-effective and streamlined process for cross-border enforcement of Mainland judgments.

Arbitration is a popular method for resolving international IP disputes. In 2017, we amended our Arbitration Ordinance (Cap. 609) to clarify that all IP disputes, whether within or outside Hong Kong, may be resolved by arbitration, and that IP arbitral awards are enforceable in Hong Kong. In light of the rapid development of innovation and technology around the globe, which inevitably gives rise to IP disputes, these timely amendments have given Hong Kong a competitive edge over other jurisdictions in resolving IP disputes.

In cross-border disputes involving violation of IP rights, urgent interim measures in the form of property and evidence preservation are usually called for. The groundbreaking Interim Measures Arrangement, implemented in October 2019, allows parties to arbitration seated in Hong Kong and administered by designated arbitral institutions to apply to the Mainland courts for interim measures. This arrangement provides an effective means to prevent a disputing party from deliberately destroying evidence or dissipating assets on the Mainland, ensuring that the legitimate interest of the claimant are well protected. Our panel speakers will later enlighten you further on the benefits of resolving IP disputes through arbitration.

As evidenced by various initiatives in recent years, our department (Department of Justice) has spared no efforts in strengthening Hong Kong's status as a leading regional centre for international legal and dispute resolution services. I am confident that, backed by our excellent legal infrastructure, our legal and dispute resolution experts can leverage the advantages of our robust IP regime and continue to excel in the new frontier of e-commerce.

On this note, I wish this Forum and today's Session every success. Thank you very much.

Speech by DSJ at Business of IP Asia Forum 2024 Breakout Session Source: HKSAR Government Press Releases

Speech by FS at CUHK EMBA Annual Conference

Following is the speech by the Financial Secretary, Mr Paul Chan, at the CUHK EMBA Annual Conference today (May 9):

Professor Dennis Lo (Vice-Chancellor and President, the Chinese University of Hong Kong (CUHK)), Professor Lin Zhou (Dean, CUHK Business School), Macy (Chairperson of Organizing Committee, Ms Macy Chan), Michael (Chairperson of Organizing Committee, Mr Michael Chan), CUHK EMBA alumni and students, business leaders, distinguished guests and friends,

Good evening.

Addressing a room full of Executive MBA students and graduates is both an honour and a privilege. There is a particular kind of ambition in this room — one that is not content with success alone, but driven to understand it more deeply, in the belief that better ideas lead to greater impact.

That kind of commitment — to learning, to growth, to asking harder questions — is precisely what today's conversation is about.

The theme of this conference, which focuses on innovation and agile leadership, could not be more timely. Most of us here have lived through the Internet age and the smartphone revolution, which made communication faster and more seamless than anyone had imagined.

Today, the rise of AI places us at a more fundamental tipping point. Technology is not merely changing the answers — it is redefining the questions themselves.

Consider what is already within reach. An AI assistant can learn your preferences, curate a personalised shortlist, and simply ask for your confirmation. We should even ask whether the smartphone and the search engine will remain our primary gateways to the digital world, or whether something altogether new is already taking shape.

To draw an analogy, the power of technology does not lie in drawing the old map with greater precision. It lies in revealing how much of that map remains uncharted — and in showing us that entirely new maps, with new co-ordinates, are being drawn.

This redefinition is unfolding across three dimensions simultaneously.

First, the redefinition of products. Products are no longer discrete, standalone objects. A smart car is a vehicle, but also a mobile platform for data. An insurance policy can be a contract, but equally a dynamic reflection of health data. Innovation today is born from cross-sector convergence and continuous evolution.

Second, the redefinition of services. Services are no longer delivered solely by enterprises. They emerge from collaborative networks of people and AI. But the more profound shift is in what customers now expect. In the past, good service meant reaching the right person quickly. Today, customers expect a solution that anticipates their needs before articulating them. This requires a new architecture of service delivery: human and machine, with AI handling the scale, the speed, and the personalisation that no human team alone could sustain.

Third, and most importantly, the redefinition of business models. In the past, we sought optimal solutions within established frameworks — when demand rose, we expanded capacity; when service needs grew, we opened more branches. Technology invites us to break out of those frameworks entirely. Intelligent manufacturing means that "economies of scale" is no longer the only answer; flexible supply chains have made customised, on-demand production the new normal.

These three redefinitions are opening a commercial frontier unlike anything we have seen before. But if the benefits of technology accrue only to a small circle, its power remains fundamentally constrained. This brings me to the second message I want to leave with you today: inclusivity.

Inclusivity is not charity. Yet it is the smartest business strategy available. The unmet needs of the broader public represent the largest and most underserved market opportunity in existence. When you make quality healthcare, education and financial services accessible and affordable to ordinary residents, you are not serving a group in need of handouts — you are unlocking a vast market that traditional business models have consistently overlooked.

Hong Kong has a distinctive role to play here. We can be a co-architect of standards, a hub for capital, and a bridge between innovation and real-world deployment — from clinical validation of smart healthcare, to green technology financing, to regulatory sandboxes for fintech. Our contribution draws not only on institutional strengths and international networks, but on our genuine commitment to broad-based participation.

Yet inclusive products and services are only the first step. The deeper dimension is empowerment.

History reminds us that the dividends of technological revolution need to be actively guided to reach the many. In the age of steam, and again in the Internet era, early gains concentrated among capital owners and top-tier talent. But today we have the opportunity to write a different story. AI, as an amplifier of human capability, is already enabling what was previously unimaginable: a solo entrepreneur, with the right tools and the right vision, can build a unicorn.

In other words, the unit of competitive advantage is shifting — from the size of your team to the skill with which you orchestrate your tools.

Our mission should be to make that shift available to everyone. To turn individual readiness into collective prosperity, and to ensure that the productivity gains of AI flow broadly across the society.

This is precisely why, in this year's Budget, I placed such emphasis on the "AI Training for All" initiative.

We are not trying to turn everyone into an engineer. We are ensuring that workers, managers, SME (small and medium-sized enterprise) owners, and ordinary residents become capable collaborators with AI: people who can access it, use it effectively, and put it to work as their assistant.

That may sound ambitious, but consider this: if AI can one day be as intuitive as the smartphone, then mass adoption is not difficult to imagine at all. Just as computers once migrated from specialist facilities into offices and homes, AI will find its way into everyone's daily work and life.

For business leaders, it may be tempting to think of AI as "digital employee" that can replace existing workers. But think of a different framing: equipping your workforce with powerful digital assistants can achieve productivity gains, while also freeing your people to do what humans do best — create, imagine and innovate.

Companies that take those extra steps, and think those extra moves ahead, will find that an empowered workforce is also a more innovative one.

All in all, the power of technology must ultimately be measured by its contribution to inclusive growth. And inclusive growth, in the end, depends on, yes, commercial acumen — but also empathy, compassion, and the conviction that a rising tide should lift all boats. I can see that those qualities live in this room.

I will close with this thought. Someone once joked that economists know the price of everything and the value of nothing. With AI, let us never fall into the same trap — in our race to price every efficiency gain, let us not lose sight of the deeper value we are trying to create: a society where the fruits of innovation are broadly shared, and where technology lifts not just the fortunate few, but everyone willing to reach for it.

So here is my ask: let us grow the pie together. And make sure we cut it well.

Thank you very much.

Source: AI-found images

Speech by FS at CUHK EMBA Annual Conference Source: HKSAR Government Press Releases

Speech by FS at CUHK EMBA Annual Conference Source: HKSAR Government Press Releases

Source: AI-found images