Hong Kong legal sector eyes film business role using smart contracts, blockchain

Hong Kong’s legal sector is taking an unprecedented leap into the world of Web3 and digital assets to revolutionise the city’s film and television industry in a bid to better track investments, with some massive losses incurred as a result of a lack of transparency.

The bold new strategy, unveiled at a seminar on Thursday, enables the use of blockchain and smart contracts to fundamentally transform the industry and offer a new channel for financing creative content, according to lawmaker Johnny Ng Kit-chong, director of the eBRAM International Online Arbitration and Mediation Centre, a not-for-profit company.

“This legal technology is actually helping the industry upgrade,” Ng said. “With [legal technology] processes, the entire industry will become transparent and systematic, and investors will naturally choose projects and guide funds back into our industry.”

Ng noted that many film investors who were not familiar with the industry, including himself, often suffered losses of more than 90 per cent of their investments because of a lack of transparency over how the money was used.

Thomas So Shiu-tsung, chairman of eBRAM, said that “another critical step” had been taken. The centre formally signed a memorandum of understanding with broadcaster RTHK, the Asia Pacific Creativity Industries Association and the Association of Motion Picture Post Production Professionals.

“This partnership not only consolidates Hong Kong’s position as a film and television deal-making centre, but also encourages the industry to choose Hong Kong’s dispute resolution services,” So said.