MANUFACTURE OF OPTICAL DISCS BILL

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MANUFACTURE OF OPTICAL DISCS BILL: Order for Second Reading read.

The Minister of State for Trade and Industry (Mr Raymond Lim Siang Keat): Madam, I beg to move, "That the Bill be now read a Second time."

In 1998, the Government invoked the Control of Manufacture Act to regulate the manufacturing of optical discs, such as compact discs, video CDs and digital video discs. This was done in order to ensure that Singapore did not become a location for pirated disc manufacturing. This measure has been successful. The industry in Singapore has continued to grow and, supported by effective enforcement, illegal activity has been rooted out.

This Bill seeks to enhance the regulatory regime for optical disc manufacturing in Singapore. With Singapore's thrust towards a knowledge-based economy, it is timely to improve the regulatory regime for optical discs so as to keep pace with technological advancements and better protect the rights of intellectual property rights holders. In doing so, we will also be implementing Singapore's commitments under the USSFTA.

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Let me now turn to the salient features of this Bill and, in particular, how these differ from the current regime under the Control of Manufacture Act.

First, we are introducing a licensing system. Currently, optical disc manufacturers are required to register with EDB. Under the Bill, manufacturers are required to obtain a licence from EDB. Currently, only a one-time registration is needed. Under the Bill, licences will be subject to renewal. A register of licences issued will be maintained by EDB and will be available for public inspection.

Second, the Bill introduces new obligations for manufacturers. Currently, registered manufacturers undertake to observe a voluntary code of conduct not to engage in IPR infringing activities. Under the Bill, manufacturers will have to imprint on optical discs a code that identifies them as the manufacturer of the discs. Exceptions to this obligation can, however, be authorised by right holders. It will also be an offence to falsely apply another code or any mark resembling such a code. Manufacturers are further required to keep records of their orders and purchases for inspection upon request.

The third feature concerns enforcement. Enforcement responsibilities for any breaches of obligation under this Bill will be undertaken by the police IPR branch. Authorised officers and police officers will now be empowered to carry out inspections of licensed premises, both with and without notice. Licensees will also be required, upon written request, to provide samples of optical discs to any authorised officer, police officer, owner of copyright or right-holder organisation.

Finally, we have enhanced penalties under this Bill. The new penalties are in line with those pertaining to similar offences in other jurisdictions, as well as those under Singapore's Copyright Act.

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The Bill also provides for forfeiture of goods and/or the revocation of licences under certain circumstances.

Madam, this Bill will enhance the competitiveness of our industry by boosting its reputation in terms of intellectual property protection. Rights holders will be more inclined to award manufacturing contracts to plants in Singapore because they are subject to a licensing system that is more robust. Further, some of the requirements under the Bill, such as the requirement to imprint a manufacturer's code, are already required in commercial contracts. Other jurisdictions, such as Malaysia, Hong Kong and Taiwan, have already introduced similar legislation. In addition, in drafting this Bill, MTI has been careful not to impose unnecessary or onerous conditions on the industry while ensuring at the same time to put in place an effective system to deter potential infringers. Application fees for licences will be kept to modest levels, and applications for renewal of licences will incur no additional costs. The manufacturers' code to be adopted will be based on the internationally accepted standard that the industry is already familiar with. Inspections by authorised officers will also be carried out with minimal disruption to legitimate manufacturers.

Madam, in conclusion, a strong IPR regime is consistent with Singapore's objective of becoming a knowledge-based economy. It will also contribute towards enhancing our attractiveness as a destination for IP-related investments, thus creating more and better jobs for Singaporeans. This Bill is a useful addition to the comprehensive range of effective IP laws that Singapore already has in place.

Madam, I beg to move.

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Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Raymond Lim Siang Keat].

Bill considered in Committee; reported without amendment; read a Third time and passed.