Attorney General v. Sony Kabushiki Kaisha and Another

Case No.CACV 101/1983
Court
Court of Appeal
Date17 Nov 1983
Judge
Case Document
100%

CACV000101/1983

IN THE COURT OF APPEAL

1983, No. 101

(Civil)

BETWEEN

The Attorney General

Appellant
(Defendant)

and

Sony Kabushiki Kaisha Respondents
(also known as Sony Corporation) (1st Plaintiff)
Sony Corporation of Hong Kong Limited (2nd Plaintiff)

_________

Coram: Roberts, C. J., Yang & Barker, JJ.A,

Date: 17 November1983

__________

JUDGMENT

__________

Barker, J. A.:

1. The judgment I am about to deliver is the judgment of the Court.

2. This is an appeal by the Attorney General from an order by Mayo, J. made on an Originating Summons, that the Commissioner of Customs and Excise should disclose to the Plaintiffs Sony Kabushiki Kaisha (also Known as Sony Corporation and Sony Corporation of Hong Kong Limited, hereinafter referred to as Sony, certain information and documents obtained by the Commissioner in two raids carried out by his officers on the 9th and 11th days of October 1982 by virtue of his powers under the Trade Descriptions Ordinance Cap. 362 - the information and documents being alleged to relate to forged trade marks.

3. The Originating Summons was expressed to be made under section 17(2) of that Ordinance and the sole question raised in this appeal is whether the said section 17 confers on the High Court an originating jurisdiction to order a person to disclose information obtained by him in pursuance of the Ordinance to others.

4. Three matters should be mentioned at the outset. First, Sony require this information and these documents to enable them to bring civil proceedings against persons alleged to have infringed their trade marks. Secondly, without such information or documents, Sony will find it difficult, if not impossible, to institute civil proceedings, since they do not at present know either the names or the addresses of the alleged infringers. Thirdly, the Commissioner acknowledges that he has received a great deal of information from Sony, which enabled the raids to be carried out, and would willingly furnish to Sony such information or documents as he is permitted by law to disclose. It is, however, his contention that he is not so permitted.

5. It is to be observed that the object of the Ordinance is to stamp out illicit trade in goods bearing a false trade description by rendering it criminal. In pursuance of this object, the Commissioner is, by sections 15 and 16, given power to enter premises and inspect and seize goods and documents. Nowhere (with the possible exception of section 30(7) - an ill drafted section to which reference will be made hereafter) does the Ordinance deal with civil proceedings.

6. It is against this background that we turn to section 17. It reads as follows:

"

(1) Without prejudice to any other Ordinance, any person who -

(a) wilfully obstructs an authorised officer in the exercise of his powers or the performance of his duties under this Ordinance;

(b) wilfully fails to comply with any requirement properly made to him by any such authorised officer; or

(c) without reasonable excuse fails to give such authorised officer any other assistance or information with the authorised officer may reasonably require of him for the purpose of the performance of the officer's functions under this Ordinance,

commits an offence.

(2) Any person who discloses to any other person -

(a) any information with respect to any manufacturing process or trade secret obtained by him in premises which he has entered by virtue of this Ordinance; or

(b) any information obtained by him in pursuance of this Ordinance,

commits an offence unless the disclosure was made -

(i) in or for the purpose of the performance by him or any other parson of functions under this Ordinance, or

(ii) in the case of paragraph (b) under the direction or order of a court.

(4) Subject to subsection (5), nothing in this section shall be taken to -

(a) require a person to answer any question or give any information if to do so might incriminate that person or the wife or husband of that person; or

(b) compel the production by a solicitor of a document containing a privileged communication made by or to him in that capacity or authorise the seizure of any such document in his possession.

(5) A person shall not be excused, by reason that to do so may incriminate that person or the wife or husband of that person of an offence under this Ordinance -

(a) from answering any question put   to that person in any civil proceedings;

(b) from complying with any order made in any such proceedings,

but no statement or admission made by a person in answering a question put or complying with an order made shall, in proceedings for an offence under this Ordinance, be admissible in evidence against that person or (unless they married after the making of the statement or admission) against the wife or husband of that person."

7. The Judge ruled that section 17(2)(ii) empowered him to make the order for disclosure. We are of the view that it did not.

8. Although the Ordinance was passed to replace the Merchandise Marks Ordinance, it was largely modelled on the Trade Descriptions Act 1968. Section 28 of this Act, however, could lead to difficulties, because it contains an absolute bar to disclosure. As was pointed out by O'Keefe, at page 3/313 of his book on the Law Relating to Trade Descriptions, the giving of evidence in civil proceedings, if this involves the disclosure of information of the kind referred to in section 28 of the Act, could well amount to the commission of an offence. It was in our view to obviate the possibility referred to by O'Keefe that section 17(2)(ii) was enacted.

9. This view is reinforced by the terms of section 17(5).  Re cannot think that these words, used as they are to relieve an officer from a liability to prosecution, are apt to found an original jurisdiction to grant an order for disclosure to enable civil proceedings to be brought. So to hold would mean that the Legislature must be taken to have changed the law by a side wind and we do not believe that this would be a reasonable interpreta-tion of its intentions.

10. Discovery (and the Order made by the Judge clearly amounted to an order for discovery) is normally limited -

(a) As between parties only under Order 24 of the Rules of the Supreme Court.

(b) To cases where a court issues a subpoena duces tecum in an existing action.

(c) To cases covered by sections 41 and 42 of the Supreme Court Ordinance, Cap. 4, which enables a court to order discovery against a person likely to become a party to proceedings in which a claim in respect of personal injuries or of a person's death is likely to be made.

(d) Under section 44 of Cap. 4, which confers certain powers on the High Court exercisable before the commencement of proceedings in respect of property which may become the subject matter of subsequent proceedings in Court.

11. Subject to the foregoing, the normal principle is that discovery will be ordered against a mere witness only where he has become involved in the tortious acts of others. (See Norwich Pharmacal Co. v. Customs and Excise Commissioners (l),  per Lord Reid at pp. 174 and 175.) There is no question in the present case that the Commissioner has become so involved, nor does this case come within (a), (b), (c) or (d) supra.

12. In consequence we are of the opinion that the Judge had no jurisdiction to make the order which he did.

13. An argument was addressed to us as to whether jurisdiction could be conferred by section 40(3) or 40(4) of the Interpretation and General Clauses Ordinance, Cap. 1 which provides -

"     (3) Without prejudice to the generality of subsection (1) whenever in any Ordinance the expression ........ as the Governor may direct' ........ or any similar expression referring to the Governor, appears and no power is expressly conferred upon the Governor.....to give the direction..... such power shall nevertheless be deemed to be conferred.

(4) Subsection (3) shall have effect in relation to the Governor in Council, a public officer, a public body or other person as it has effect in relation to the Governor."

14. By section 3 of Cap. 1, "person" is defined, so far as relevant, as follows:

"Person includes any public body and any body of persons, corporate or unincorporate."

15. But in our judgment this argument fails, for two reasons. First, if it had been intended by the Legislature to bring the Court within the ambit of section 40, it would have said so. Secondly, notwithstanding the wide definition of "person in section 3, we do not consider that a court is a "public body or other person".

16. This appeal must be allowed and the order of the Judge be set aside. It is a result which gives this Court little satisfaction. It will not encourage trade mark proprietors to cooperate with the Commissioner, since they can expect little information from him in return. All they will get is provided for by section 30(7) of the Trade Descriptions Ordinance which reads:

"Where goods seized or detained under section 15 are goods to which a forged trade mark is applied, or to which a trade mark or mark so nearly resembling a trade mark as to be calculated to deceive is falsely applied, the Commissioner shall, wherever reasonably practicable, notify the proprietor of the trade mark or his agent."

17. But notify the proprietor of what? The date of seizure, the nature of the goods seized, when seized, from whom? The subsection is silent. Moreover, it is arguable that the duty of the Commissioner arises only when it is proved that a forged trade mark is applied.

18. It would require but little amendment of section 30(7) to empower (and if necessary oblige) the Commissioner to give to the proprietor the information which Sony have sought, unsuccessfully as we have held to obtain in this matter. Trading in genuine goods, and the elimination of fakes, are vital to the economy of Hong Kong. The sooner this aid to such ends is enacted the better.

(1) 119741 A. C. 133

Representation:

Frank Stock, Esq. & S.H. Franklin, Esq. (Legal Department) for Appellant (Defendant).

Anthony Rogers, Esq. (Messrs. Baker & McKenzie) for Respondent (Plaintiffs).