Gov’t sets aside $4.3b to support IP trading and creative arts branding

The IP trading and the creative industry received funding of $45m and $4.3b respectively.

Hong Kong has allocated $45m to establish a patent search and analysis support centre and a further $4b to fund film, arts, and design projects, FS Paul Chan said in his Budget speech.

FS Chan pondered on the importance of intellectual property (IP) transactions to promote industries including R&D, cultural and creative industries, design, and branding licensing industries in Hong Kong.

The government will introduce a proposal to amend the Inland Revenue Ordinance to implement the patent box tax incentive which will reduce the tax rate for profits from qualifying IP to 5%.

In addition, the government plans to establish a World Intellectual Property Organization Technology & Innovation Support Centre (TISC) in Hong Kong. A $45m fund was set aside for this initiative.

Set to commence operations by 2025, the initiative will support patent search and analysis for the I&T sector and the promotion of IP trading.

To support its legal system, the government will establish the Organization for Mediation (IOMed) which will be headquartered in Hong Kong.

IOMed will resolve international disputes through mediation and will boost related economic activities.

To support the cultural and creative industry, the government will create a blueprint for Arts & Culture & Creative Industries Development.

Hong Kong also allocated $1.4b for the Film Development Fund and $2.9b for the CreateSmart Initiative in 2024-2025 to support creative arts projects which includes the annual Hong Kong Fashion Design week from 2024 onwards.

In addition, Hong Kong will launch the Signature Performing Arts Programme Scheme which will support the production of local large-scale performing arts programmes to be set up in 1H2024.

In light of this, the government plans to organise the first Hong Kong Performing Arts Expo in October 2024. The government will also organise the 4th  Guangdong-Hong Kong-Macao Greater Bay Area Culture & Arts Festival.