Hong Kong will revert to Chinese sovereignty on July 1, 1997. However, under the terms of the agreement between China and the United Kingdom on the return of Hong Kong to Chinese control, Hong Kong will remain a separate Special Administrative Region of China until at least 2047 and during this period it is intended that Hong Kong will retain a separate economic system. Under the terms of the basic law adopted in 1990 by the People's Republic of China relating to the government of Hong Kong during this 50-year transition period it is provided that "the laws previously in force in Hong Kong, that is the common law, rules of equity, ordinances, subordinate legislation and customary law shall be maintained except for any that conflict with the basic law and subject to any amendment by the legislature of the Hong Kong special administrative region." Specific mention is made of intellectual property rights, which will remain distinct from those of China throughout the transition period.

Following discussions between the United Kingdom and China last November at which China agreed to the general proposals for Hong Kong's post-unification intellectual property regime and in particular Hong Kong's continued adherence to the Paris Convention and the Patent Cooperation Treaty, the Government of Hong Kong has issued proposals for a revised patent law to be effected both before and after return of Hong Kong to China. Under the proposed legislation a quasi-registration system will continue to apply. It was felt that attempting to establish a full examination system in Hong Kong would not be justified. Hong Kong patents will be able to be based on granted British patents, European patents (designating the United Kingdom) and Chinese patents. After a transition period, registration will be able to be based on Chinese patents only. It is, however, proposed that registration in Hong Kong will be confined to a six-month period after the grant of the British, European or Chinese patent. It also seems that in order to base one's patent on such a foreign patent one will also have had to register the earlier publication of the British, European or Chinese patent within six months of its publication.

It was recognized that the delays that may occur in the grant of the European or Chinese patent may give rise to difficulties and therefore it is proposed that a system of petty patents be adopted so that a patent could be based on a convention priority claim of an application filed abroad and would give rise to protection in Hong Kong for a maximum duration of six years from filing. Petty patents will, however, be subject to the preparation of a search report. It appears that it is contemplated that both a petty patent and a full term "registration" patent could be secured for the same invention. The current proposal for a petty patent would confine this to a single main claim and four sub-claims. Such petty patents will be granted without any substantive examination as to novelty or inventive step.

The proposal must now be submitted to the Legislative Council for enactment.

Editor's Note: See our subsequent report in our July 1997 Newsletter.