The proposals include: introducing a right of communication that covers all modes of electronic transmission, with criminal sanctions available against those who breach this right; allowing internet service providers (ISPs) to reproduce copyright works temporarily; and drawing up a voluntary code of practice for ISPs.

"The government is mindful of the need to balance competing interests, including the need to provide an environment conducive to the sustainable development of creative industries in Hong Kong, protection of personal data privacy, and the development of Hong Kong as an internet service hub," Frederick Ma, secretary for commerce and economic development, said in a statement.

The government has also launched a consultation on a possible format shifting exception to allow consumers to move music or films that they have bought legitimately onto different media, such as MP3 players.

New Zealand recently amended its Copyright Act to allow a format shifting exception, but this is limited to sound recordings. The UK is considering introducing a similar format shifting exception.

Ma said that after the second round of consultation has been completed the government intends to put forward more detailed proposals. This is expected to happen in late 2008 or early 2009.

The preliminary proposals are available here. The deadline for submissions is August 31.