Refined proposals for more effective copyright protection in the digital environment have struck a reasonable balance among the interests of copyright owners, users and online service providers, Permanent Secretary for Commerce & Economic Development (Commerce, Industry & Tourism) Yvonne Choi says.

She told the Legislative Council today the Government is mindful of the challenges brought by technology advances and is committed to maintaining the efficacy of the copyright protection regime, adding a robust protection regime is the cornerstone for sustaining the healthy development of local creative industries.

"In formulating the proposals to better protect copyright works disseminated online, the Government has strived to balance competing interests, including the need to provide an environment conducive to Hong Kong's development as an Internet service hub, as well as the protection of personal data privacy and free flow of information," she said.

The views expressed by stakeholders during an earlier consultation exercise and the latest developments in overseas jurisdictions have been taken into account in refining some of the preliminary proposals.

The refined proposals include:

* recognising copyright owners' right to communicate their works through any mode of electronic transmission, with related criminal sanctions against those who initiate unauthorised communication of copyright works to the public in the course of business conducted for profit or where it is made to such an extent as to affect prejudicially the copyright owners;

* introducing a statutory regime to prescribe the circumstances under which online service providers' liability for copyright infringement will be limited;

* introducing a copyright exception for temporary reproduction of copyright works by online service providers, which is technically required for (or enables) the transmission process to function efficiently;

* prescribing in law additional factors to help the court consider the award of additional damages, in recognition of the difficulties encountered by copyright owners in proving the extent of actual loss, particularly in the digital environment; and,

* introducing a media shifting exception so the owner of a non-infringing copy of a sound recording may make one copy of that recording in each device they lawfully own for their personal and domestic use.

However, the bureau did not support introducing an alternative infringer identity disclosure mechanism that is not subject to scrutiny by the court; introducing statutory damages for copyright infringement actions involving the Internet; and, introducing new criminal liability pertaining to unauthorised downloading and peer-to-peer file-sharing activities.

It will start preparing the necessary law changes and will continue to engage the stakeholders in the process with a view to tabling the amendment bill at the Legislative Council in the second half of next year.