Philips Electronics China Group - the local arm of the Dutch electronics conglomerate - has signalled an intention to stand firm on the defence of its intellectual property rights in Hong Kong.
The firm has commenced legal action against alleged Hong Kong patent-infringers for the first time, filing injunctions against two local compact-disc 'replicators' - Mega Winner (HK) and Goldsense Technology.
Replicators are firms which manufacture pre-recorded CDs, either audio, video compact-discs, or CD-roms.
Unlike pirates, replicators have agreements to reproduce the original material.
Philips is one of the inventors of the CD format, and holds patents on 'essential' parts of the manufacturing process. All makers of pre-recorded CDs are required to be licensed by the Dutch firm.
There are 60 replicators in the SAR. Philips' legal counsel John Kerk said all but six had reached, or were in the process of reaching, licensing agreements to make CDs.
Mr Kerk said the six firms were not only unlicensed, but 'unco-operative' when approached for talks.