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Joyce Pangco Pañares
Manila Standard

President Arroyo has created a super body that will enforce and protect intellectual property rights in the country as well as prosecute counterfeiters.

Mrs. Arroyo signed Executive Order 736 creating the National Committee on Intellectual Property Rights and directing law enforcement agencies and government offices to set up their own IPR protection units.

“An effective intellectual and industrial property system is vital to the development of domestic and creative activity, facilitates transfer of technology, attracts foreign investments, and ensures market access for our products,” the President said.

The Philippines has been de-listed from the priority watch list of the United States Trade Representative’s Special 301 list of IPR violators. The country is now under the regular category.

The Arroyo administration expects the country to be removed completely from the watch list by 2010.

Mrs. Arroyo designated Trade Secretary Peter Favila as chairman of the committee and the head of the Intellectual Property Office as vice chairman.

Members of the committee include representatives from the Justice Department, Interior Department, Bureau of Customs, National Telecommunications Commission, National Bureau of Investigation, National Police, Optical Media Board, National Book Development Board, and Bureau of Food and Drugs.

“The NCIPR member agencies shall establish and institutionalize a permanent intellectual property unit with adequate personnel and budget allocation,” the President said.

The committee was also tasked to provide policy and legislative proposals on additional intellectual property laws as well as ensure that courts are adequately skilled in intellectual property rights cases to hasten prosecution of cases involving violations of intellectual rights.

Last year, IPR enforcement operations led to forfeiture of close to P3 billion worth of counterfeit items, up by P497 million from the combined figures of 2005 and 2006. At least 498 cases have already been filed before the courts against intellectual property rights violators.

Manila Times

Software piracy rates in the Philippines declined to 69 percent in 2007 from 71 percent in 2006, according to the Business Software Alliance (BSA).

Despite this, BSA Asia Pacific vice president and regional director Jeffrey Hardee said that losses by its member companies in the Philippines from software piracy increased to $147 million in 2007 from $119 million in 2006.

Hardee credited the Pilipinas Anti-Piracy Team for the decreased piracy rates and said, “we at the BSA are happy to see this reduction.”

The anti-piracy team is composed of the National Bureau of Investigation, Philippine National Police and Optical Media Board, which conducted raids on business establishments suspected to be using and selling illegally copied software.

Hardee attributed the paradox of decreased piracy rates but heightened losses by BSA members to the stronger peso. That factor, along with the expanded market for personal computers and software, brought about the losses.

Hardee said the proliferation of unbranded computers that are locally assembled is one of the causes of piracy in the country. Such computers, which comprise 50 percent of all personal computers in the Philippines, usually use pirated software.

“This is a challenge the BSA and the Philippines will have to address,” Hardee said.

He said the BSA is asking the Philippine Congress to pass bills implementing World Intellectual Property Office treaties to which the country is a signatory.” We hope these [bills] will be passed this year,” he said.

Documents furnished by BSA showed Bangladesh had the highest piracy rates in Asia at 92 percent, followed by Sri Lanka at 90 percent and Vietnam at 85 percent. The Philippines was not in the list of countries in the world with the highest piracy rates, which included the three Asia-Pacific countries.

The Philippines’ piracy rate tied India’s at 69 percent. India is today regarded as the Philippines primary competitor for outsourced e-services.

–Ike Suarez

Ike Suarez, Correspondent
Manila Times

“Raids and seizures are not enough to deter piracy and counterfeiting”

The Intellectual Property Coalition Inc., the federation of Philippine trade associations connected with the creative industries, has asked the Office of the US Trade Representative to retain the Philippines this year on its 301 Watchlist, the list of countries worldwide where IPR violations are rampant.

Representing the IT sector in this federation are the Philippine chapter of the Business Software Alliance (BSA), Philippine Software Industry Association, and Philippine Internet Commerce Society.

At the same time, IP Coalition has asked the USTR to conduct an out-of-cycle review to determine rate of progress in gaps in the Philippine IPR regime identified by the coalition.

The requests are contained in an official letter dated February 11 addressed to Jennifer Choe Graves, director for Intellectual Property and Innovation and chairwoman for the Special 301 Watchlist of the federal government’s Office of the US Trade of Representative in Washington D.C.

The letter, a copy of which was obtained by Tech Times,  had the signatures of  the IP Coalition Inc. Chairman John Lesaca and its general counsel, Lawyer Numeriano Rodriguez.

“Qualitatively and quantitatively, the enforcement record for 2007 evidences consistent readiness and responsiveness by the enforcement agencies to respond to stakeholders,” the letter said as the IP Coalition Inc. noted advances by Philippine law enforcers in going after IPR violators.

But the letter added, “ The raids and seizures are not enough to deter piracy and counterfeiting. Enforcement is but the initial stage in the process to protect IP.”

In its letter, the IP Coalition Inc. said little has been done in the Philippines to establish an IP unit at the Bureau of Customs; designate specific courts as dedicated to the handling of IPR-related cases; enact enabling laws to implement Internet treaties, and issue ordinances  authored by  local governments with regard to IP in their respective areas of jurisdiction.

The letter pointed out that the bulk of pirated media in the Philippines had been imported from neighboring Asian countries. But it said, the unit at the Bureau of Customs tasked to handle these matters had continued to remain as a small office.

It said that IPR cases filed in the Philippine courts last two to 10 years before being decided upon and establishment of specialized IP courts could reduce trials to a period of six months to two years. It added that establishment of such courts could be done by a mere order issued by the Philippine Supreme Court.

It also said there was need for legislation in the Philippines to enable enforcement of the World Intellectual Property Office Copyright Treaty and WIPO Performance and Phonograms Treaty that had been drawn up to address IPR issues spawned by the proliferation of digital technologies and Internet connectivity.

The IP Coalition  Inc. also called for uniform ordinances to be adopted by local governments. It noted that a few city governments had already passed ordinances in this regard but added, “we still await actual implementation.”

Other associations that make up the IP Coalition Inc. include the Asosasyon ng Musikang Pilipino Foundation, Association of Videogram Distributors of the Philippines, Council to Combat Counterfeiting and Piracy of Patents, Copyrights, and Trademarks, Filipino Society of Composers, Authors, and Publishers, Organization of Filipino Composers, Movie Distributors Association of the Philippines, Philippine Association of Recording Industries, Philippine Chamber of Commerce and Industry, and US Chamber of Commerce.

Manila Times

The Optical Media Board (OMB) is intensifying operations against software pirates in the country.

It is the government unit that regulates the manufacture of optical media in all its forms and impose stiffer fines and penalties for its illegal reproduction.

Targeting all forms of software copyright infringement, OMB agents are hard at work in identifying possible violators and pressing due penalties to those found guilty of violating the IPR and OMB law.

To date, it has conducted operations in malls, targeting retailers, Internet cafés and business establishments known to house copyright violators.

In end-October, agents from the Intelligence Inspection Division of the OMB conducted surprise inspections in business establishments located in key areas around the Metro including EDSA Central, SM City North EDSA Cyberzone, Tri-Noma, Tektite Towers and other business establishments in Pasig City, Mandaluyong City and San Juan.

The series of surprise inspections spread an alarming fear among business owners, pushing them to start legalizing their softwares and stop piracy, an act detrimental to the industry and economy.

OMB confiscated thousands of optical discs and other equipment such as CPU towers, CD-ROMs and CD burners utilized for copyright infringement.

Owners of establishments found utilizing pirated software were warned about the adverse penalties of copyright infringement including closure of business and possible imprisonment.

OMB Executive Director Atty. Rosendo Meneses promised to see to it that all forms of business establishments from multinational companies down to Internet cafés all over the country will be inspected in the next few weeks.

He said that the OMB is strongly committed to hunt down software pirates and conduct more enforcement actions not only around the metro, but also in key cities around the country where piracy is rampant.

Software piracy is a violation of the Intellectual Property Code of the Philippines, and is punishable of up to nine years imprisonment and a fine of up to P1.5 million pesos.

“Let this serve as a warning to all copyright violators: Your days are numbered! The OMB will stop at nothing until the menace of piracy is eradicated in the country. We enjoin the public including the media and the local city governments to be more vigilant and report business establishments who are engaging in software piracy,” warned Atty. Meneses.

OMB is a member of the Pilipinas Anti-Piracy Team or PAPT, a government-led initiative. Other members are the National Bureau of Investigations and the Philippine National Police.

PAPT has become the embodiment of the government’s efforts to eliminate software piracy and promote faster growth of the country’s information technology (IT) industry.

Katrice R. Jalbuena
Manila Times

Agents of the National Bureau of Investigations seized during a recent operation at least P5 million worth of computer hardware loaded with pirated software.

Edward A. Villarta, head of the NBI National Capital Region office, said they acted on a complaint from Autodesk Inc., a US-based software company which complained of the proliferation of unlicensed versions of their Autocad program.

Upon verification of intelligence reports on the matter, it was uncovered that CIID International Inc., which holds office at Belvedere Building, San Miguel Avenue, Ortigas Center, Pasig City, was using unauthorized Autocad software. The NBI then secured a search warrant from Judge Reynaldo G. Ross of the Manila Regional Trial Court.

Seized and confiscated during the raid at the office of CIID International were eighteen computer units found to be installed with pirated versions of Autocad. The estimated value of the seized items was placed at more or less P5 million.

The owners of the company face charges of violating Republic Act 8293 or the Intellectual Property Rights Code of the Philippines.

Ike Suarez, Tech Times contributor
Manila Times

The Philippine government, through its Pilipinas Antipiracy Team, has coordinated its efforts at enforcing the law against software piracy since the team was formed in August 2005. In line with this, the Business Software Alliance has found the results produced by the PAPT for the past two years as encouraging.

This development was announced at a PAPT press briefing last week in Makati City where officials of this coordinating body gave out a progress report of its achievements as it marked its 2nd anniversary.

PAPT is made up of the National Bureau of Investigation (NBI), Philippine National Police (PNP), and the Optical Media Board (OMB) with the mandate to coordinate and render consistent their efforts as the three respective agencies conduct their individual operations to run after users and sellers of pirated software. OMB Chairman Eduardo Manzano is its spokesman.

At the briefing, Manzano pointed out that the United States government has now taken the Philippines out of its Priority Watch List of software copyrights violators. Although, he did not claim the credit for the coordinating body.

Nevertheless, he read a congratulatory message sent by President Gloria Arroyo on the occasion of its 2nd anniversary, saying: “The coordination among these agencies had brought encouraging results and noteworthy gains to the government’s fight against software piracy. Proof of this was the removal of the Philippines from the priority Watch List of the United States.”

Officials of the NBI, PNP and OMB separately informed reporters about their respective agencies’ progress in the antipiracy campaign. NBI Deputy Director Victor Bessat told reporters that from January to August 2007, their agency had seized P189-million worth of items related to their efforts nationwide to enforce software copyright laws.

The items consisted of illegally copied software and the hardware in which they were installed as well as peripherals related to their use.

Such seizures were the results of 185 search warrants served nationwide on business establishment suspected of using or selling pirated computer programs.

Bessat said that in 2006, the NBI had raided 23 establishments throughout the country bringing about the confiscation of 320 computers with unlicensed software, bringing a total worth of P57 million. “For the year 2006 to the present, we have filed 892 cases against violators of Intellectual Property Rights” he said.

The PNP Intelligence chief, Col. Noel de los Reyes, on the other hand, told reporters that their agency from January to August 31 this year, seized close to P292-million worth of unlicensed software along with CD installers, PCs and peripherals. It had also arrested 76 persons and filed cases against them in court for IPR violations.

As with the NBI, the seizures and arrests were the result of nationwide operations.

Likewise, OMB Executive Director Rosendo Meneses told reporters that their agency had from January to August 2007 seized P634.5-million worth of pirated optical discs and related paraphernalia such as replicating machines, television monitors, DVD players and PCs.

At the briefing, the PAPT spokesman explained that the OMB does not distinguish whether the pirated content is software, music, movies, computer games, or video programs.

BSA Asia Director for Piracy Tarun Shawney, who flew to Manila from Singapore, told reporters that the PAPT’s efforts to consistently enforce IPR laws were a fantastic achievement. He said that while software piracy rates in the Philippines were still high, the results so far by the government to run after users and sellers of unauthorized programs had been encouraging.

Last May, at a press briefing, the BSA said piracy rates in the Philippines were at a high of 70 percent.

Max V. de Leon
Manila Times

THE Philippine bid to get deleted from the US Special 301 Watch List, which contains names of countries allegedly not doing enough to protect intellectual property?mostly of American artists and movie companies?has received a big boost. The International Intellectual Property Alliance, a coalition of seven trade associations representing US copyright-based industries, said government is doing ?good work? on the problem.

Adrian Cristobal Jr.,…

Joyce Pangco Pa?ares
Manila Standard

THE Philippines has been removed from the US government?s Special 301 list of countries that do not provide adequate copyright protection, the Palace said last night, a development that may pave the way for increased American investments in the country.

In a roundtable discussion last night, President Gloria Macapagal Arroyo announced the country?s removal from the US priority watchlist after a sustained effort to meet Washington?s…

Lawrence Agcaoili
The Manila Standard

Add high fashion to the list of pirated products.

France yesterday scored the Philippines for its failure to address the proliferation of French imitation products that violate intellectual property rights (IPR).

Trade Secretary Juan Santos, who recently talked to French Minister for Foreign Trade Francois Loos, said yesterday Paris has been complaining about locally made products ? from bags to perfume ? that duplicate their high-end…