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To: John Rieman who wrote (24580)	10/29/1997 1:26:00 PM
From: DiViT	Respond to of 50808

VCD factory boss challenges raid ANGEL LAU ÿ 10/14/97 HONGKONG STANDARD Copyright 1997 WorldSources Online, Inc., A Joint Venture of FDCH, Inc. and World Times, Inc. ÿ THE Commissioner of Customs and Excise, claiming copyright infringement, ordered the demolition of a video compact disc ( VCD ) production line, only to be challenged in court on the legality of his action. Lo Yu-shing, a director and shareholder of Mega Laser Products (HK), accused the commissioner of having "no legal basis" to seize and dismantle the production line in Sheung Heung Road, To Kwa Wan. Mega started operations in Ting Sun Plaza last month and had received three major orders in less than two weeks. Copyright owners of 13 film titles had licensed or authorised Mega to make 171,000 VCDs of films, according to Lo. But everything came to a halt on 20 September when Customs and Excise officers raided the premises without showing his staff any search warrant, he alleged. Following an exchange of letters between his solicitors and the commissioner, Lo said he was informed on 8 October that "the CD-production line concerned is now seized and will be removed from the scene of crime as soon as practicable". Customs and Excise officers, together with contractors, arrived at the premises about 9 am the following day and started to dismantle the production line. Lawyers for Mega went to Mr Justice Nicholas Barnett and the judge ordered a stay of the removal until the determination of Lo's application for leave to apply for judicial review. In his notice of application lodged with the High Court on Thursday, Lo said the production was not an infringing act and Customs and Excise officers had been shown copies of licences or authorisations. He also claimed the commissioner was in breach of natural justice because "no sufficient opportunity" had been given to him to make the necessary representation.