Following is a speech by the Permanent Secretary for Commerce and Economic Development (Communications and Technology), Mr Duncan Pescod, at the Opening Ceremony of Music Matters, the Asia Pacific Music Forum on June 3 (English only):
Mr Donat (Jasper), distinguished guests, ladies and gentlemen,
Good morning. It is my great pleasure to join so many leaders from the music and entertainment industry for the opening of this year's Music Matters, the Asia Pacific Music Forum. Celebrating its fourth anniversary, Music Matters has become a signature event on the global music industry calendar. I would like to congratulate all those who have been involved in making the event a success over the years.
I am very pleased that Hong Kong is hosting this event. The fact that the event is being held here is testimony to the fact that Hong Kong has all the elements to be a key music creation centre within the global Chinese community. These elements include the free flow of information, the freedom of expression, easy market access as well as sound copyright laws. Equally important is the diversity of music that is available here. From our home grown canto-pop to Afrobeat, Mandarin classics to modern jazz. I can honestly say that there is something for everyone. It is no exaggeration to say that Hong Kong is Asia's World City where it is possible to enjoy music from all over the world.
With the advancement of technology, the Internet has rapidly grown to be one of the preferred platforms for us all to listen to and appreciate music. There is no doubt that this new technology has impacted on the traditional business models used by the music industry. Many see this as a threat, but I would argue that as with every new technological advance there are opportunities in this development that benefit artist and the business sector alike.
To grasp these opportunities, it is important for members of the industry to fully utilise digital technology while developing new business models to expand the music market. A case in point is advertisement funded or supported music downloads. I understand that Mainland Internet search engine company, in partnership with various music labels, has launched an Internet music platform, which enables Chinese Internet users to legally download songs free of charge. Instead of earning money from the downloading of songs, record labels will get a share of the advertising revenue from the platform. This is just one of the newly emerging businesses models. I believe that other models will emerge as artists continue to explore ways to improve their access to their fans online through the use of new information and communications technology.
I am pleased to say that you will have the opportunity to explore some of these issues in depth through the focus panels and various keynote speakers during Music Matters. This will offer a great opportunity for you all to review the situation and consider how to tap the Asian market potential.
I am confident that the forum this year can get different industries working together and plotting the road maps for future development of the music and entertainment industry in Asia.
I have to say that there is, of course a role to play for the Government. We need to work hand in hand with the industry to provide an environment in which the industry can thrive. You may be aware that we have just set up Create Hong Kong: a new office that is intended to drive the development of the creative industries in Hong Kong. We believe that CreateHK will be able more effectively to respond to industries' demands and better serve the trade through providing a one-stop service. We have also secured $300 million (US$ 38 million) to establish what we are calling the Create Smart Initiative. This will provide financial support in the coming three year to projects that are conducive to the development of the creative industries. But don't all rush to apply. There will be a vetting process and an independent committee to advise on how the money should be spent.
On top of these initiatives, the Government will continue to work hard to protect intellectual property rights through a comprehensive legal framework, and to raise public awareness of the need to respect creativity and innovation. When promoting the development of the creative and innovation industry, it is of paramount importance to instill confidence in investors that the fruit of their creation would be adequately protected. We fully recognised that an effective and robust system for protecting intellectual property rights is a critical cornerstone for developing creativity and innovation.
We see merits in further enhancing and updating our copyright protection regime in the digital environment. A review is now underway and we intend to improve our system in line with this new universal trend. We are in discussion with the rights holders as well as Internet service providers on how best to strengthen copyright protection in the digital environment. We will be announcing a package of proposals later this year.
Friedrich Nietzsche once said 'Without music, life would be a mistake.' As a lifelong music fan, I am keen to ensure that music continues to flourish in Hong Kong. No matter in what form, if music is part of everything we do, then the world is a better place.
I wish you a most fruitful forum and I hope that you will be able to spare some time to experience the vibrancy and uniqueness of Hong Kong. Thank you.
Ends