Distinguished guests, ladies and gentlemen,

　　Good afternoon. It is my great pleasure to welcome you to this thematic breakout session co-organised by the HKSAR Government and the Hong Kong Trade Development Council.

　　In recent years, artificial intelligence (AI) has caught the attention of the world. AI is being increasingly deployed in a wide range of industries, including healthcare, retail, financial, legal or other industries. The use of AI may help them grow revenue, boost operational efficiency and enhance customer experience. While more businesses are investing in AI due to the enormous commercial benefits behind, one may need to be aware of a number of potential legal issues, particularly in the area of intellectual property (IP).

　　For instance, the AI systems can generate different forms of content, from texts, designs, images, soundtracks to videos, etc. Who owns the copyright to these AI-generated contents? Should the developer of the AI system or the user of the AI system who inputs the text prompts be the owner? Further, if a developer uses copyrighted materials to develop and train an AI system, will it amount to an infringement of the relevant copyright? Apart from the above ownership and infringement issues, if training data involves personal data, this may potentially give rise to data protection and privacy issues. I am sure our speakers today will share with us some useful insights on how to address these IP issues.

　　In terms of dispute resolution, if any AI-related IP disputes arise, how can businesses resolve these disputes in an efficient and cost effective manner? In this regard, Hong Kong’s arbitration regime is well suited to resolve IP disputes. In June 2017, the Arbitration Ordinance was amended to clarify that disputes over IP rights can be resolved by arbitration and arbitral awards involving IP rights can be enforced in Hong Kong. The amendments relating to IP arbitration came into operation on 1 January 2018. In light of the rapid development of innovation and technology around the world which inevitably bring about IP disputes, these amendments are timely. They give Hong Kong a competitive edge in resolving IP disputes over other jurisdictions in the region.

　　Last year, we have also amended the Arbitration Ordinance to allow clients and their lawyers to enter into fee agreements using outcome related fee structures for arbitration (ORFSA). Following this amendment, three types of ORFSA agreements are allowed in Hong Kong, including conditional fee agreements, damages-based agreements and hybrid damages-based agreements. With ORFSA, arbitration users and their lawyers can have greater flexibility in making fee arrangements that suit their financial and business needs. Sophisticated commercial clients can also benefit by sharing risk with their lawyer and having better cash flow management. The relevant subsidiary legislation already came into operation in December last year, which sets out a detailed regulatory framework for ORFSA, including fee caps on different types of ORFSA agreements.

　　Recently, Hong Kong has entered into several important mutual legal assistance arrangements with the Mainland including the Interim Measures Arrangement signed in April 2019. This arrangement allows parties to arbitration seated in Hong Kong and administered by designated arbitral institutions to apply to the Mainland courts for interim measures. Such interim measures include property preservation, evidence preservation and conduct preservation. These interim measures aim at preventing one of the parties to arbitral proceedings from deliberately destroying evidence or transferring property, thereby ensuring that the arbitral proceedings can be carried out effectively. Hong Kong is the first, and until now, the only common law jurisdiction outside the Mainland where the arbitration parties would be able to apply for interim measures from the Mainland courts. This arrangement certainly increases Hong Kong’s overall attractiveness as an arbitral seat.

　　Since its implementation in October 2019, the Interim Measures Arrangement has been highly regarded and widely used by the arbitration community. As at October 31 this year, 102 preservation applications were made to the Mainland courts. So far, the Mainland courts have issued 71 court decisions involving RMB15.8 billion worth of assets.

　　In addition, Hong Kong has a strong pool of legal and dispute resolution talents. The HKSAR Government launched a pilot scheme in June 2020 to provide immigration facilitation for eligible non-Hong Kong residents participating in arbitral proceedings in Hong Kong on a short-term basis. Under the pilot scheme, arbitrators, experts and factual witnesses, counsel and parties to the arbitration are allowed to participate in arbitral proceedings in Hong Kong as visitors without the need to obtain employment visas. Since 1 March this year, the pilot scheme has been expanded to cover all visitors, including those who require a visit visa or entry permit to enter Hong Kong and residents of the Mainland, Macao and Taiwan, in addition to those who can visit Hong Kong visa-free. The expansion of the pilot scheme provides convenience for everyone to participate in arbitral proceedings in Hong Kong. Parties to arbitral proceedings in Hong Kong also have a wider range of choice of arbitrators and other related professionals. We hope that the pilot scheme would further attract more parties to choose Hong Kong as the seat of arbitration.

　　In recent years, modern technologies, including blockchain and artificial intelligence, have brought revolutionary changes to the dispute resolution landscape. The HKSAR Government fully embraces the use of innovative technologies in dispute resolution and encourages the development of online dispute resolution and lawtech. In April 2020, Hong Kong opted into the APEC Collaborative Framework for Online Dispute Resolution of Cross-Border Business-to-Business Disputes (APEC ODR Framework), which promotes the use of ODR by global businesses, in particular, micro, small and medium-sized enterprises, in resolving low-value cross-border business-to-business disputes. Our home-grown institution, eBRAM, has been listed as one of the few ODR service providers under the APEC ODR Framework since May 2022. In August this year, eBRAM also successfully launched its Online Deal-making Platform.

　　Ladies and gentlemen, with these promising developments in dispute resolution, I am confident that Hong Kong’s legal and dispute resolution experts will be able to assist businesses in resolving any IP disputes economically and efficiently. On this note, I wish this session every success.

　　Lastly, to those of you who are from Hong Kong, District Council election will be held on December 10. I appeal to all of you to vote, together with your families and friends, on the polling day in the hope of electing District Council members with talent, aspiration and commitment to build a better community for Hong Kong. Thank you very much.