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COMMENT

GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES

(Submitted to the Office of the United States Trade Representative in relation to

the 2009 Special 301 Out-of-Cycle Review)

INTRODUCTION

THE REPORT

I. Public Outreach: A Broad Constituency

II. Strengthening Institutions and Capacity Building

III. Sustained IPR Enforcement

IV. Judicial Reforms and Alternative Remedies

V. Legislative and Policy Reforms

VI. International Cooperation for IPR

CONCLUSION

ANNEXES

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INTRODUCTION

Establishing a strong, balanced, and viable Intellectual Property (IP) system that

fosters creativity and contributes to society’s development is an evolutionary process. That is the lesson learned by developing countries from developed states that have benefited, and continue to benefit, from innovations spurred by the IP system.

In the Philippines, the mission of creating an IP regime that protects and promotes

IP throughout the stages of innovation - from creation to protection to commercialization – is being carried out by means of a holistic strategy of several components: public education and awareness; institution and capacity building; sustaining enforcement; IPR adjudication; policy reforms, and international cooperation. These six components complement and reinforce each other.

Gauging the progress of the entire strategy requires a broad perspective of

developments over a reasonable period of time, without losing sight of the long term mission. From this viewpoint, the Philippine has made remarkable progress in developing its IP system to meet its mission in the past four years when the strategy was launched. Every component of the strategy has resulted in significant changes, some of them relatively easier to quantify like volume of confiscated goods and others of an intangible nature like awareness or perceptions. But, taken as a whole, the strategy, at this early stage of implementation, has made a powerful impact on public opinion, institutions, operations, policy space, and international relations.

The Government of the Republic of the Philippines (GRP) submits this

“Comment” to the United States Government (USG) to share information on the state of IPR and the IP system in the Philippines.

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I. Public Outreach: A Broad Constituency

The global consensus on strengthening the IP system to promote innovat ion is to

create and nurture what the World Intellectual Property Organizat ion (WIPO) calls an

“IP culture.” Enforcement alone against the worldwide problem of piracy and

counterfeit ing will not solve this menace. Public awareness and educat ion that can

change consumer behavior is the key to eradicat ing piracy and counterfeit ing and

managing IP for economic growth and development.

However, this change in mindset goes beyond consumer behavior or att itudes

about quality, safety or legality; in the Philippines and other developing countries, it

means making consumers realize that they have a personal and professional stake in

the IP system and society can gain real benefits from IPR. The dominant public

percept ion that only the economic interests of large foreign mult inat ionals and

developed states benefit from IPRs and not domest ic SMEs and developing countries,

needs to be put in the proper perspect ive.

Since 2005, the GRP has invested unprecedented personnel, t ime and resources

on public outreach programs that educate a broad const ituency of IP creators, owners

and users across the archipelago. This const ituency support is the key to changing

public opinion about IPR in the country which, in turn, provides the anchor for the

effect ive protect ion of IPR and the promot ion of IP as a tool for the country’s social and

economic development.

IP Awareness Raising (“RAISE IP”)

One successful program is “RAISE IP,” a combinat ion of seminars, events and

act ivit ies, target ing the general public and specif ic sectors. This year alone, from

January to October 2009, IP Philippines conducted a total of 111 IP Basic Orientat ion

Seminars (BOS) for teachers, students, inventors, art ists, entrepreneurs and

government off icials.

Every year, more events and act ivit ies are organized by the IP Philippines,

other government agencies, and private sector partners to raise awareness about IPR

in the country. These are art and science exhibits, trade fairs, conferences,

compet it ions, recognit ion and awards. All these act ivit ies are supported by a team of

media relat ions specialists based in the IP Philippines with the Secretariat of the

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Nat ional Committee on IPR (NCIPR) to ensure maximum publicity. From January to

November 2009, there were 19 media pick ups.1 The stories, from PR stories seeded

by the team, to unsolicited media ment ions, often highlight the relevance of IP in

growing the country’s coffers.2

IP in Schools (“IP’sChool”)

Another major init iat ive is the “IP’sChool”, which focuses on informat ion

disseminat ion in high school and college/university campuses. One site for this program

is the Philippine Science High School-Main Campus (PSHS) covered by a Memorandum

of Agreement with IP Philippines. IP seminars were conducted in the main campus, and

the advocacy project will be expanded to the other 11 campuses of the PSHS around the

country.

A powerful tool of this focused advocacy in school campuses is the Intellectual

Property Policy Program that IP Philippines and the Commission on Higher Educat ion

(CHED) have been promot ing nat ionwide for the past two years. Both inst itut ions

issued a Joint Memorandum Circular requiring and mandat ing all state universit ies and

colleges and all private higher educat ion inst itut ions (HEI) to formulate and implement

an IP Policy within their campuses. Campus-based IP policies have become the

advocacy tools in school campuses around the country. To enforce the policy, it must be

explained and publicized to the faculty, students and all other people who live and do

business in school campuses, including book sellers, legal or otherwise.

For instance, De La Salle University (DLSU), one of the largest private

universit ies in the country, has been holding a series of seminars for their faculty and

students on the university’s IP policy. The university administrat ion has also removed all

photocopying machines in the libraries in campus and is exploring copyright licenses

with publishers and authors through Collect ion Management Organizat ions (CMO).

Through the University IP Policy Program, IP Philippines provides workshops

on craft ing IP policies, seminars on sett ing up Technology Licensing Off ices (TLO),

advocacy support and capacity building in areas like patent claims draft ing, patent

1 Dailies (8), broadcast (1) and online (10).

2 http://www.sunstar.com.ph/davao/mindanao-inventors-expo-set

http://www.inquirer.net/vdo/player.php?vid=2214

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search and technology commercializat ion.

In 2006, there were only six universit ies with IP Policies and one university with a

Technology Licensing Off ice (TLO) or IP unit, but today, there are 29 universit ies with IP

policies and 19 more universit ies are draft ing their own. Moreover, 29 universit ies have

TLOs or IP units. With IP policies off icially sanct ioned and IP units or off ices and TLOs

based in campuses nat ionwide, IP educat ion is rapidly spreading in these target areas.

The impact of these policies, not just on the coffers of universit ies, but on the

wave of public educat ion about IPR in campuses around the country, is gaining ground.

All ready, the impact is being felt in campuses like DLSU. Now, that universit ies and

colleges have ownership over IP, it is to their interest that they disseminate these

policies and enforce them properly within their campuses, with support from IP

Philippines.

Running parallel to the IP awareness and educat ion programs for school

campuses, are other sector-focused public outreach campaigns.

Women

To commemorate the Internat ional Women’s Month, IP Philippines and the

Women Inventors’ Associat ion of the Philippines, Inc. (WIAPI) held a consultat ive

dialogue to foster an environment for women scient ists and inventors conducive to

generat ing IP assets on March 27. The f irst of its kind, the forum sought to spur

collaborat ive programs between the two organizat ions. The dialogue ident if ied

programs and act ivit ies where IP Philippines and WIAPI can collaborate to st imulate

patent ing act ivity among women inventors groups in the country. These include the

IP informat ion educat ion campaign programs, IP advocacy program, technology

transfer and commercializat ion, and bringing, IP to the grassroots and the

community.

Authors and Publishers

Sustaining the GRP’s support for this sector in the past four years, the NBDB

organized the 2009 Academic Publishing Conference in Baguio City on April 22-23, in

partnership with the United Nat ions Educat ional, Scient if ic and Cultural Organizat ion

(UNESCO), the University of the Philippines in Baguio, IP Philippines, the CHED,

Manila Bullet in, Central Book Supply, Fuji Xerox and Anvil Publishing. Local and

foreign speakers lectured on copyright issues such as the implementat ion of copyright

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in the Philippines where fair repographic dealings and royalt ies are new concepts. The

conference’s main object ives were to update and educate students, authors,

professors and publishers on local and internat ional laws and trends on copyright.

Inventors, Scient ists and RDIs

To celebrate the three annual occasions of World IP Day (April 26), the 12th

year of the Intellectual Property Code (IP Code) or Republic Act 8293 (June 6), and the

Nat ional IPR week (October 26-31), IP Philippines spearheaded a series of act ivit ies

that focused on how human creat ivity bridges innovat ion and environmental

protect ion:

“2nd Nat ional Workshop on IP and Technology Commercializat ion” (April 21-23) -

organized by IP Philippines, the Intellectual Property Research and Training

Inst itute (IPRTI) and the United States Department of Commerce.

“Green Invent ion” Exhibit at the IP Philippines’ Innovat ion Area (April-May)

Art ists

“Fine Prints: Mult iple Originals” at the IP Philippines Alab Art Space (April-May)

“Punto de Vista: Copyright in the Digital Environment, A Forum for Writers and

Publishers” at the Inst ituto Cervantes (April 25)

Concert (UP Guitar Orchestra) at the Inst ituto Cervantes (April 25)

Youth

“Looking for Juan” Art Exhibit at the IP Philippines Alab Art Space (June - July)

Three-day Workshop and Basic Orientat ion Seminar for Young Art ists (April 28-30)

Small and Medium Enterprises

For the SMEs, among the major events organized by IP Philippines are the

following:

Basic Orientat ion Seminar on Ut ility Models/Industrial Design (June 19)

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Free IP clinics for patents and trademark f ilers (month of June and October)

WIPO-IP Philippines-Philippine Chamber of Commerce and Industry Training

Workshop for Chambers of Commerce and Business Support Inst itut ions (July 22-

23)

“The Intellectual Property Innovat ion Award” - Among the act ivit ies for IPR Week

is the awarding of the f irst-ever IP Innovat ion Award during the annual Philippine

Business Conference. Called the “Ambassador Alfredo M. Yao Intellectual Property

Innovat ion Award,” this joint undertaking of the Philippine Chamber of Commerce

and Industry (PCCI) and IP Philippines is meant to encourage innovat ions.

IP owners, pract it ioners, and government

Apart from the regular seminars organized by IP Philippines, there were special

events conducted this year for the community of IP owners, pract it ioners and

government off icials. These are the following:

“2009 IP Colloquium for the Judiciary” held on October 26 at the EDSA Shangrila

Hotel, Mandaluyong City - Supreme Court Chief Just ice Reynato S. Puno delivered

the Keynote Address about the important role of the Judiciary in promot ing

creat ivity and innovat ion. Also on this occasion, the IP community formally

presented to the Chief Just ice a draft of special IP l it igat ion rules for the Supreme

Court’s considerat ion. These “streamlined” procedural rules, crafted by a mult i-

sectoral const ituency, aim to hasten the lit igat ion process of cases that infringe

patents, trademarks and copyright in court. Gaps and loopholes in the present

Rules of Court as they apply to IPR infringement will be plugged by this new set of

rules.

“The 2009 Workshop on Counterfeit ing and Border Measures” for the Nat ional

Committee on Intellectual Property Rights (NCIPR) at the EDSA Shangrila Hotel,

Mandaluyong City (October 26) - Keynote Speaker, Bureau of Customs

Commissioner Napoleon L. Morales, was represented by Deputy Commissioner

Jairus D. Paguntalan. The seminar put emphasis on strategies and tact ics to

enforce IPR against counterfeiters. The event was organized by IP Philippines in

partnership with IPR Business Partnership, a private organizat ion of internat ional

IP stakeholders with global IP brands.

“The Asia Pacif ic Conference on Nat ional Strategies for IP Policy and

Development” at the EDSA Shangrila, Mandaluyong City (October 27) - IP

Philippines organized this regional conference with the World Intellectual

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Property Organizat ion (WIPO). Senior Undersecretary for Internat ional Trade,

Thomas G. Aquino, represented Trade Secretary Peter B. Favila to deliver the

keynote speech. Delegates from 22 countries in the Asia Pacif ic region,

representat ives of government agencies responsible for science and technology,

public health, the arts, tradit ional knowledge and socio-economic planning, the

private sector and civil society. The two-day forum provided an opportunity to

discuss and share ideas and experiences on craft ing and implement ing country IP

policy strategies that support an environment conducive to innovat ion, and to

ensure that the IP system serves the goals of nat ional social and economic

development.

“Nat ional Workshop on the Trade-Related Aspects of Intellectual Property Rights

(TRIPS Agreement),” November 17-18. The workshop gathered 100 key policy

makers and other stakeholders of the intellectual property system to discuss new

issues and developments on trade liberalizat ion and its impact on nat ional

development.

The public outreach strategy aims to educate all the sectors ment ioned above

on the importance of IP and how to protect and manage their IPR to gain maximum

benef its from their creat ive works. Each act ivity gains adherents and supporters for

IPR in the country, which not only redounds to the benef it of the country but also

provides the necessary support for IPR protect ion and promot ion.

Public Informat ion Campaign

IP Philippines’ public informat ion campaign expanded in 2009, both in

geographic reach and in breadth of coverage. Aside from the tradit ional print and

broadcast media, news about IP Philippines was also carried by web publicat ions. And

not just Philippine-based web publicat ions, but those from other countries, as well. In

terms of breadth, 2009 saw IP ment ions in stories not directly seeded by the in-house

communicat ions team of IP Philippines - a clear indicat ion that media and other mass

communicators have developed a broader view of IP and its relevance to the nat ional

economic order. Other relevant stakeholders, through their own communicat ions

endeavors, have also acknowledged the accomplishments of IP Philippines in creat ing

a more robust IP regime. A total of 294 news reports (P11,438,409.00) on IP3 from

3 Dailies (183), Online (89) and Radio-TV (22).

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January to November 2009 were monitored by IP Philippines.

Reaching more than tradit ional media. In 2009, it was not only the tradit ional

print media reporters that covered IP and related topics. According to the monitoring

of IP Philippines, select blogs and web publicat ions have begun picking up the stories

posted by IP Philippines in our website. For instance, a blogger/broadcast journalist

from a major network also wrote about the relevance of IP, without any formal

proddings from the agency.4

Reaching more than the usual IP audience. Aside from tapping other mass

communicat ion channels, collaborat ing with industry associat ions has strengthened

the impact of the messages of IP Philippines. The landmark resolut ion of the

copyright infringement case against a cable network this year attracted good press

coverage. While the communicat ion init iat ive was led by the Cable & Satellite

Broadcast ing Associat ion of Asia (CASBAA), IP Philippines was successful in

incorporat ing our own messages by fostering good working relat ions with the former.

Thus, majority of the media pick ups also highlighted the message of IP Philippines to

protect one’s IP assets. More importantly, there was public aff irmat ion from an

inst itut ion, in this case, CASBAA, of the effect iveness of the init iat ives and programs

of IP Philippines to enhance IP protect ion.5

Beyond the IP Philippines-led act ivit ies. Whereas media stories about IP

Philippines before were mostly about event organized by the agency, this year,

various art icles on issues that are directly connected to IP have merited publicat ion

space. In stories about rights of musicians and authors, the work of IP Philippines has

been ment ioned. A radio program also devoted an ent ire episode (one hour long) to

discussing the basics of IP – copyright, trademark, and patents. Infringement cases

not brought before the IP Philippines’ Bureau of Legal Affairs also make ment ion of IP

and the IP Philippines. In general, based on the monitoring of IP Philippines, more

4 IP Philippines urges local IP stakeholders to file more domestic patents – skyscrapercity.com http://www.skyscrapercity.com/showthread.php?p=46828187 (Pls.

refer to thread number 365)

5 CASBAA applauds Philippine cable undertaking (http://www.rapidtvnews.com/index.php/200907094227/casbaa-applauds-philippines-cable-undertaking.html)

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art icles in media have come making attribut ions to IP and IP Philippines.6

Public Opinion Makers Taking Not ice of IP. Another posit ive development of the

pubic informat ion campaign of IP Philippines in 2009 is the act ive interest of

newspaper columnists in matters related to IP. Not a few columnists of major

broadsheet dailies have ment ioned IP in their columns. There were those who

ment ioned IP in reference to part icular cases, other who gave informat ive discourses

on a specif ic IP-related matter, and st ill others made ment ioned of the gains by IP

Philippines in its various init iat ives to nurture a strong IP regime.7

Together, a dynamic public outreach program and an aggressive public

educat ion and awareness campaign over the past few years, have succeeded in

changing public opinion on IPR signif icantly. Now, there is a broad mult i-sectoral

const ituency behind IPR. More importantly, it is a Filipino-based const ituency that

dispels the not ion that only large foreign companies are pushing for IPR.

II. Strengthening Institutions and Capacity Building

The GRP has always maintained that to sustain the strengthening of the IP

regime and promote IP as a tool for development where Filipino innovators and

consumers have a stake, public and private inst itut ions have to be established and

strengthened.

Inst itut ion and capacity building efforts over the past few years are bearing

fruit and provide solid support to sustain the mult i-faceted campaign to strengthen

and develop the IP system.

Execut ive Order No. 736 (EO 736)

Under EO 736 creat ing the Nat ional Committee on IPR (NCIPR), the member

6 (a) The fight for copyright – Manila Bulletin (http://www.mb.com.ph/articles/204784/the-fight-fo-copyright)

(b) Technology commercialization underscores value of creativity and innovation – Positive News Media

(http://positivenewsmedia.net/am2/publish/Business_19/Technology_commercialization_underscores_value_of_creativity_and_innovation_printer.shtml )

7 (a) Writers and copyright (1) – Philippine Star (http://www.media-meter.com/push/article.asp?type=1&User=385&Article=299039)

(b) Writers and copyright (2) – Philippine Star (http://www.media-meter.com/push/article.asp?type=1&User=385&Article=302964)

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agencies are directed to intensify the promot ion, protect ion and enforcement of

intellectual property rights (IPR) in the country.

For the Bureau of Customs (BOC), the Secretary of Finance approved Customs

Administrat ive Order No. 9-2008, “Creat ion of a Permanent IPR Division in the Bureau

of Customs” (CAO No. 9-2008). Under the CAO, from the exist ing personnel

complement of eleven (11) of the IP unit of BOC, the permanent IPR Division will have

f ifty-f ive (55) personnel. BOC submitted its budgetary requirements to the

Department of Budget and Management (DBM) and is await ing approval. The

inst itut ionalizat ion of the IPR Division of BOC is signif icant in strengthening IPR

enforcement at the border. The Secretary of Trade and Industry as the Chairman of the

NCIPR has endorsed favorably the BOC’s request to the DBM. It is just a matter of

t ime when the larger IP Unit of the BOC will be set-up by 2010. In the meant ime, the

BOC maintains its operat ions against IPR violat ions as can be seen in the enforcement

f igures.

For the Philippine Nat ional Police (PNP), Police Director General Jesus A.

Verzosa issued Letter of Instruct ions (LOI) on Integrat ion of IPR in the PNP funct ions

on 24 November 2008.8 On 16 March 2009, IP Philippines and PNP signed a

Memorandum of Agreement (MOA), wherein the two inst itut ions will jointly create

educat ional, capacity building, and training programs on intellectual property. Under

the partnership, IP Philippines and the PNP are also set to jointly undertake projects

to promote protect ion and enforcement of intellectual property rights. The

Directorate for Invest igat ion and Detect ive Management (DIDM) had already

coordinated with the Directorate for Human Resource and Doctrine Development

(DHRDD) for the inclusion of IPR modules in the different regular training of PNP. But,

the PNP Chief’s LOI has started to make a huge impact against piracy and

8 The LOI mainstreams IPR enforcement throughout the country and prescribes the procedures and guidelines in integrating and incorporating IPR in PNP

functions at all levels to consolidate all investigative data and efforts. The objectives of the LOI are:

a) To formulate guidelines to effectively strengthen the enforcement of IPR laws in the country;

b) To provide decentralized implementation of IP laws which is envisioned to enhance PNP’s overall delivery of services to be undertaken by subordinate

police offices/units;

c) To enhance the handling of IPR cases through an investigation and monitoring system in the different PNP units/levels; and

d) To establish a more effective and efficient implementation of the laws and handling of cases related to IPR within the identified offices/units in the

different PNP units/levels, in collaboration/coordination with other law enforcement agencies.

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counterfeit ing as proven by the 1,065.61% increase in PNP seized goods this year.

As for the Opt ical Media Board (OMB), addit ional funding to expand its

operat ions and for inst itut ional and capacity development in the organizat ion is

being reviewed by the DBM. Request for addit ional funding is provisional pending

approval of allowing OMB to retain some of its fees to be used for operat ions. In June

2009, IP Philippines endorsed to DBM the request of BOC for budgetary requirements

for its IPR Division and the addit ional funding for OMB to expand its operat ions.

Recently, the President appointed Mr. Ronaldo N. Ricketts as Chairman of the OMB.

Execut ive Order No. 737 (EO 737)

E.O. No. 737, created the IP Research and Training Inst itute (IPRTI) to serve as

the research and training arm of the GRP. The IPRTI provides training not only to the

off icers of the Criminal Just ice System, but to the rest of the IP Community as well. In

this way, IPRTI contributes to the goal of expanding stakeholder support for IPR and

advocat ing for the effect ive use of IP for development and wealth creat ion.

IPRTI organized the “2nd Nat ional Workshop on Intellectual Property and

Technology Commercializat ion” on 21-23 April 2009 in partnership with the

Commercial Law Development Program (CLDP) of the United States Department of

Commerce. The workshop is a follow up act ivity conducted in 2008. The Chairman of

the Committee on Science and Technology in the Philippine Senate, Senator Edgardo

J. Angara, delivered the keynote address. Nineteen (19) public and three (3) private

universit ies nat ionwide, sixteen (16) RDIs, and two (2) private sector inst itut ions were

formally invited to part icipate in the training - two (2) part icipants each from the

universit ies and RDIs, and one (1) from each private sector inst itut ion part icipated.

Last year, the 1st Nat ional Workshop on IP and Technology Commercializat ion

resulted in the Commission on Higher Educat ion’s (CHED) craft ing of a joint

memorandum circular urging the academe to come up with their own IP policy. This

year, the workshop bridges the gap between the academe and the market by bringing

together technology creators and those with the means to commercialize technology.

This linkage is crit ical to take innovat ion from the research and development

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inst itut ions (RDI) to the doorstep of people through commercializat ion.

The IPRTI also conducted the 2009 Platform and Mentoring Skills for Patent

Agent Qualifying Examinat ion (PAQE) Instructors on 02-03 June 2009 (1st Batch) and

04-05 June 2009 (2nd Batch). These workshops are the f irst of a series of workshops

for the local PAQE instructors in preparat ion for their crucial role for the 2009 Patent

Draft ing Seminar that is held annually by the IPRTI in partnership with the European

Patent Off ice (EPO). The workshop provides an all-inclusive training in platform and

mentoring skills in patent draft ing. For the 1st and 2nd batches of workshops, twenty-

six (26) part icipants and thirty-seven (37) part icipants attended, respect ively.

For its mandate to provide capacity building support to other inst itut ions like

Universit ies and RDIs, the IPRTI also facilitated and organized the following act ivit ies:

Training Course on Interpret ing PCT Search Reports and Written Opinions

(October 12-16)

Patent Agent Qualifying Exam (September 04)

Patent Draft ing Seminar (August 17-21)

EPO Trainors’ Training (August 13-15)

Novart is Internat ional Biotechnology Leadership Camp-Biocamp (August 12)

Cert if icate Course on Patents and Introduct ion to Patent Draft ing (July 7-10 & 21-

24)

APEC IPi-Facilitator Training Course/Online Training (July 1- August 31)

“Nat ional Workshop on the Trade-Related Aspects of Intellectual Property Rights

(TRIPS) Agreement” (17-18 November 2009)

In collaborat ion with the World Trade Organizat ion (WTO), IP Philippines and

the IPRTI organized the Nat ional Workshop on the TRIPS Agreement. The workshop

aims to: (1) improve the part icipants’ understanding of the negot iat ing background of

the TRIPS Agreement and its principles; (2) assist domest ic policy makers and

stakeholders in familiarizing themselves with the TRIPS Agreement and its

development implicat ions; (3) provide part icipants with an understanding of the

debates and discussions on the Doha Work Program and other current internat ional

issues relat ing to the TRIPS Agreement; and (4) generate ideas for Filipino policy

makers and stakeholders that would help them determine the likely impact of the

TRIPS on the intellectual property framework, as well as on trade, public health,

environment, educat ion and similar areas that interface with intellectual property.

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The NCIPR and IPRTI are inst itut ions of strategic value based in the nat ion’s

capital. They are mechanisms that provide and ensure execut ive cohesiveness in

enforcing IPR and capacity building. But to further boost the GRP’s IP Strategy, IP

Philippines created f ield off ices to bring IP closer to people across the country.

Regional IP Satellite Off ices (IPSO)

Another crit ical and strategic inst itut ion building measure of the GRP is the

creat ion of f ield off ices, called IP Satellite Off ices (IPSO) in selected areas of the

country. These f ield off ices serve as launching pads for public awareness and

educat ion on IP protect ion and promot ion. IPSOs also provide technical assistance,

receive applicat ions, and monitor the state of IPR protect ion in different parts of the

country, thus, giving the GRP a comprehensive perspect ive on the nat ional IPR

situat ion.

IP Philippines has inaugurated f ive (5) IP satell ite off ices since 2008: Cebu (for

the Visayas region), Davao (for Mindanao region), and Angeles City (for Central

Luzon), Legazpi City (for Southern Luzon) and Baguio (for Northern Luzon). The IPSO

in General Santos City will be launched in December this year with the CARAGA off ice

to follow early next year.

In just a year, the IPSOs f ield operat ions have conducted 65 Basic Orientat ion

Seminars and generated 577 applicat ions (90 for patent and 487 for trademark) from

the regions from 01 January to 20 November 2009. The presence of IP off ices in the

regions is all ready making an impact in such a short span of t ime that sustaining its

operat ions will produce immense benef its in changing mindsets, providing IP services

and monitoring IPR nat ionwide.

Copyright Development Services (CDS)

Since the Philippines has a vibrant creat ive sector, and copyright infringement

has started to impact adversely on home-grown industries, support ing the creat ive

sector through IP protect ion has become a priority of the GRP.

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Created in 2007, the Copyright Development Services Unit (CDS) at IP

Philippines has been inst itut ionalized in the agency. Its main funct ion is to provide

informat ion and educat ional services, technical assistance, and legal advice regarding

copyright to the creat ive or copyright sector.

CDS conducted the following basic copyright seminars for the creat ive sector

from January to October 2009:

Art ists’ Forum, Art Manila (October 17)

U.P. Students of Science and Society Program (July 28)

Angelicum College (June 04)

Associat ion of Philippine Colleges of Arts & Science, Far Eastern University (May 12)

University of the Philippines Student of Science and Society Program (May 11)

Book Authors, Inst ituto Cervantes (April 25)

University Publisher, University of Baguio (April 23)

PhilDigi Awards BOS on Copyright for Film (March 12)

PhilDigi Awards BOS on Copyright for Music (March 11)

Press Photographers (March 14)

Deaf Students of Mult imedia, College of St. Benilde (February 17)

Through the CDS, more members of the creat ive sector have felt the need to

assert their IP rights. This convergence of interests between nat ional and

internat ional IP owners bodes well for the GRP’s campaign to strengthen the IP

regime in support of a dynamic creat ive sector.

Collect ive Management Societ ies and Reproduct ion Rights Organizat ions

Compliment ing IP advocacy and awareness projects for the copyright or

creat ive sector are policies to encourage the sector’s growth.

Creat ing a local collect ive management organizat ion is one policy that the

Nat ional Book Development Board (NBDB) has been implement ing as mandated in

Republic Act No. 8047 or the Book Publishing Industry Development Act, which

provides that the Governing Board shall “formulate policies, guidelines, mechanisms

to ensure editors, compilers, and especially authors are paid justly and promptly

royalt ies due them for reproduct ion of their works in any form and number and for

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whatever purpose.” Its Nat ional Book Policy #1.7 further provides that “mechanisms

shall be formulated to ensure that the intellectual propert ies of authors and

publishers are adequately protected through collect ive reprography licensing and

other schemes.”

The CMO project began in 2003 with the insistent guidance of NBDB Chairman

Dr. Dennis T. Gonzalez – and f inally realized when Filipinas Copyright Licensing

Society Inc. (FILCOLS) was established on 21 January 2008 – a landmark

accomplishment of the government, achieved through years of hard work. This local

CMO, supported by a broad base of members from the local book industry, will soon

license higher educat ion inst itut ions and collect royalt ies on behalf of local and

foreign authors and publishers, and distribut ing these licensing fees and royalt ies to

local and foreign copyright owners. This “win-win” scheme not only combats book

piracy but also provides the academic community legit imate access to knowledge,

while fairly compensat ing copyright owners.

The off icers of FILCOLS are Virgilio S. Almario, Chair (Author, Nat ional Art ist

for Literature); Karina A. Bolasco, Vice-Chair (Local Trade Publisher); Lirio P. Sandoval,

Treasurer (President, Book Development Associat ion of the Philippines); Mariano L.

Kilates (author); Abdon M. Balde Jr. (author); Galileo S. Zafra (author), Jerry Vincent S.

Catabijan (local textbook publisher); Rolando de Vera (foreign publisher’s

representat ive); and Alvin J. Buenaventura, Execut ive Director.

The NBDB Board, during its 164th Regular Board Meet ing held on 26 March

2008, passed resolut ion 01-164 recognizing FILCOLS as its accredited reprographic

rights organizat ion. This recognit ion is good for three (3) years and is aimed at aiding

FILCOLS grow their membership. The NBDB’s recognit ion, as with IP Philippines’

eventual recognit ion of FILCOLS, was strategic in FILCOLS’ acceptance as a member

of the Internat ional Federat ion of Reproduct ion Rights Organizat ion (IFRRO) on 03

June 2009. FILCOLS’ performance will again be evaluated in April 2011.

To date, the NBDB is working closely with IP Philippines and IFRRO to assist in

expanding the reach of FILCOLS and help protect local literary or scholarly works in

the country. For instance, FILCOLS Execut ive Director Alvin Buenaventura, together

with IP Philippines’s Copyright Division Head Atty. Louie Calvario, spoke at the

NBDB’s Academic Publishing Conference held in the University of the Philippines-

Baguio in celebrat ion of World Book and Copyright Day, addressing more than one

hundred (100) university off icials and professors from Northern Luzon to Cebu. As

part of NBDB’s celebrat ion of the 13th Philippine Book Development Month, the NBDB

17

will organize an Academic Publishing Conference for Mindanao-based publishers and

universit ies on 19-21 November 2009. Expected local and foreign resource persons

include Google’s Erik Hartmann, De La Salle’s Dr. Isagani Cruz, U.P. Press’ Dr. Luisa

Camagay, Ateneo De Manila University Press’ Maricor Bayt ion, Atty. Louie Calvario of

IP Philippines and Mr. Alvin Buenaventura of FILCOLS.

Copyright Licensing of Higher Educat ion Inst itut ions

To protect works of creat ive individuals working within universit ies while

curbing the rampant infringement of works in the premises of universit ies and

learning inst itut ions, the NBDB has encouraged schools and universit ies to come up

with a copyright policy that would protect the intellectual creat ions of its employees.

The NBDB proposed Fair Use Guidelines for Classroom Use (Guidelines) to help

higher educat ion inst itut ions on what const itutes fair use of copyrighted materials

and to guide them in developing their own copyright or IP policy. A series of

consultat ions on said Guidelines were held with various sectors of the book industry

and representat ives from associat ions of educat ional inst itut ions. NBDB Execut ive

Director, Atty. Andrea Pasion-Flores has proposed this fair use guidelines project in

her WIPO training in Sweden and China in 2008 and 2009, respect ively. These

Guidelines will serve as a model for higher educat ion inst itut ions as they prepare to

craft their respect ive copyright policy.

On 10 March 2009, the NBDB replied to the Internat ional Intellectual Property

Alliance (IIPA) ent itled, “The Endorsement of a Reprographic Rights Organizat ion and

the Formulat ion of Fair Use Guidelines”. The report detailed the efforts of government

in trying to curb piracy in the book publishing industry.

Intellectual Property Rights Protect ion (IPROTECT) Training Program

The IPROTECT Training Program is on its 3rd year since it was inst itut ionalized

by IP Philippines in 2006. In January to October this year, 20 members of the NCIPR (4

prosecutors from the DOJ, 7 personnel from the IPU-BOC, 4 from the Philippine

Nat ional Police (1 from Directorate for Invest igat ion and Detect ive Management and

3 from Ant i-Fraud and Commercial Crimes Division) and 1 part icipant each from the

18

IPR Division-Nat ional Bureau of Invest igat ion and President ial Ant i-Smuggling Group

and 3 judges from the Commercial Courts were sent to f ive (5) foreign seminars and

trainings.9 The Execut ive Director of FILCOLS was selected by IP Philippines to

part icipate in the WIPO/Norwegian Copyright Development Associat ion Training

Program on Management of Copyright and Related Rights on 02-09 June 2009 in Oslo,

Norway and on 30 November-04 December in Accra, Ghana.

Public-Private Partnerships

A vital part of inst itut ion-building is establishing and sustaining Public-Private

Partnerships to protect and promote IPR. In addit ion to the 26 linkages established in

the past four years,10 IP Philippines entered into cooperat ive agreements with the

following organizat ions:

In Legazpi City:

OK Bicol Associat ion (May 13)

Philippine Chamber of Commerce and Industry – Naga (May 13)

Regional Development Council Region V (May 13)

Bicol Inventors Society (May 13)

Bicol Foundat ion of Higher Educat ion (May 13)

In Angeles City:

Philippine Chamber of Commerce and Industry–Region 3 (March 25)

Philippine Export Confederat ion, Inc. (March 25)

Advocacy for Development of Central Luzon (March 25)

In Baguio City:

Baguio Centennial Commission (August 26)

Philippine Chamber of Commerce Inc. (August 26)

Cordillera Administrat ive Region (CAR)-Trade and Export Inc. (August 26)

9 a) US-DOJ-USPTO Intellectual Property Crime Enforcement Network (IPCEN) Conference on 11-13 March 2009 in Bangkok, Thailand.

b) Training Course in Copyright System Development on 14 June- 07 July 2009 in Tokyo, Japan.

c) APEC-ASEAN-USPTO Colloquium for Public Prosecutors and the Judiciary on Intellectual Property Rights Enforcement on 09-11 June 2009 in Kuala

Lumpur, Malaysia.

d) APEC-ASEAN-USPTO Workshop on Effective Practices in the Border Enforcement of IPR on 20-23 July 2009 in Honolulu, Hawaii.

e) Special Course on the Enforcement of the Copyright and Related Rights on 19-30 October 2009 in Tokyo, Japan.

10 2008 (13), 2007 (5), 2006 (6) and 2005 (2).

19

St. Louie University-Extension Inst itute for Small Scale Industries

Foundat ion, Inc. (August 26)

In Quezon City:

Philippine Science High School (January 26)

Philippine Nat ional Police (March 16)

In Davao City:

Council of Deans of Engineering Educat ion Region XI 9 (March 09)

Davao Inventors' Associat ion (March 09)

Mindanao Inventors Federat ion, Inc. (March 09)

Philippine Exporters Confederat ion, Inc. (March 09)

Davao City Chamber of Commerce and Industry (DCCCI) (March 09)

Moreover, a Memorandum of Agreement (MOA) among IP Philippines, the

Bureau of Customs of the Philippines and the Societe des Produits Nestle S.A., Vevey,

Switzerland and Nestle Philippines Inc. was signed on 04 September 2009. The MOA is

a signif icant partnership between the government and the business sector for IPR

advocacy and cooperat ion and was a result, in large part, to the successful ant i-

counterfeit ing campaign of Nestle in the country by working closely with the BOC and

IP Philippines. The Swiss company reported that there was no incidence of

counterfeit ing of their products in the Philippines in 2009.

The agreement sets out a comprehensive framework of cooperat ion among

the part ies with the aim of seeking to address the issue of parallel importat ion,

smuggling and importat ion of counterfeit and contraband Nestle products through

sharing of informat ion and building capabilit ies through training. Nestle agreed to

bear the cost of all disposal act ions, such as the storage and destruct ion of

counterfeit or contraband Nestle products seized by the Bureau of Customs.

The GRP’s strategy of establishing public and private inst itut ions and forging

public-private partnerships has made tremendous progress compared to four years

ago. These efforts have all ready yielded signif icant gains in gathering const ituency

support for IPR, developing capacit ies to manage IP assets and broadening public

support for the IP system. The most substant ial and palpable gains in inst itut ion

building is in the area of enforcement.

III. Sustained IPR Enforcement

20

Since the creat ion of the inter-governmental agency committee for IPR

Protect ion in 2005, enforcement against IPR violators has dramat ically improved.

Regular coordinat ion among law enforcement agencies has built cohesiveness and

sustainability in the ant i-piracy and counterfeit ing campaign. After inst itut ionalizing

this group through E.O. 736, IPR enforcement was bolstered further. More signif icant,

is the increased and more act ive partnership with private IP owners, which reflects a

growing credibility in government inst itut ions.

The combined operat ions of the Intellectual Property Rights (IPR)

Enforcement Units of the Philippine Nat ional Police (PNP), Nat ional Bureau of

Invest igat ion (NBI), Opt ical Media Board (OMB) and Bureau of Customs (BOC) for the

period of January to October 2009 resulted in the conf iscat ion of 11,285,361 pieces

and 881 boxes/sacks of fake goods and 11 replicat ing machines with an est imated

total value of P4,919,272,158.00.

The graph below shows the performance of NCIPR in 2009 (January-October)

compared to the previous years. Against 2008, total seized pirated and counterfeit

goods went up by 39.76% (P1,399,533,009.97); compared to 2007 (up by 64.06% or

P1,920,918,540.40); compared to 2006 (up by 263.52% or P3,566,046,561.04); and

compared to 2005 (up by 328.47% or P3,771,183,398.00).

1,148,088,760.00

1,353,225,596.96

2,998,353,617.60

3,519,739,148.03

4,919,272,158.00

-

1,000,000,000.00

2,000,000,000.00

3,000,000,000.00

4,000,000,000.00

5,000,000,000.00

NCIPR Enforcement Data

(per year)

2005 2006 2007 2008 2009

21

Below is a table consolidat ing basic enforcement data of the NCIPR members:

NCIPR Enforcement Data

January – October 2009

AGENCY

NO. OF OPERATIONS

QUANTITY

ESTIMATED

VALUE

(Php) Inspect ion

Search

Warrant Plant

Audit

Warrants

of

Seizure

&

Detention

Pieces Boxes/

Sacks Repl icat ing

Machine

NBI - 224 - - 7,027,728 8 - 439,784,280.00

PNP - 170 - - 218,940 50 - 2,416,964,167.00

OMB 1,029 11 12 - 3,542,652 - 3 1,114,115,675.00

BOC - - - 12 496,041 823

8 948,408,036.00

TOTAL 1,029 405 12 12 11,285,361 881

11 4,919,272,158.00

There were a total of 1,458 enforcement operat ions conducted in 360 areas

around the country. Of these act ivit ies, 1,029 were inspect ions of retail outlets and

product ion areas, 405 were by search warrants, 12 plant audits and 12 warrants of

seizure and detent ion. Of the 360 raids, 15 raids were conducted in Quiapo, 17 raids in

Binondo, 1 raid in Metrowalk, 2 raids in Makat i Cinema Square and 2 raids in

Greenhills Shopping Center. 323 raids were conducted in other areas.

Summary of Enforcement Activities in Strategic Areas

January – October 2009

AGENCY

NO. OF AREAS RAIDED (Notorious Areas)

OTHERS QUIAP

O BINONDO

METRO WALK

168

MALL

MAKATI

CINEMA

SQUARE

ST. FRANCIS

SQUARE

GREENHILLS

NBI - 2 - - - - - 5

PNP 2 9 - - - - 1 25

OMB 13 6 1 - 2 - 1 293

Sub-Total 15 17 1 - 2 - 2 323

Grand Total 360

22

Performance of NCIPR members (January- October 2009)

Philippine Nat ional Police-IP Unit (PNP-IPU) - PNP-IPU served 170 search

warrants and seized a total of 218,940 pieces and 50 boxes of counterfeited and

pirated goods worth P2,416,964,167.00. (Annex “A”)

91,802,617.46

379,109,061.00

207,354,945.00

2,416,964,167.00

-

500,000,000.00

1,000,000,000.00

1,500,000,000.00

2,000,000,000.00

2,500,000,000.00

PNP Enforcement Data

(January-October)

PNP-IPU’s performance for the period January to October 2009 improved

signif icantly compared to the same period for the following years: 2008 (up by

1,065.61% or P2,209,609,222.00); 2007 (up by 537.53% or P2,037,855,106.00); and

2006 (up by 2,537.78% or P2,325,161,549.54).

The IPR Division-Nat ional Bureau of Invest igat ion (IPRD-NBI) - IPRD-NBI

received 69 complaints and f iled 208 cases directly with the Department of Just ice

(DOJ). It served 224 search warrants and seized a total of 7,027,728 pieces of

counterfeited and pirated goods with an est imated value of P439,784,280.00. (Annex

“B”)

216,180,640.00

238,018,000.00

372,842,894.42

439,784,280.00

-

50,000,000.00

100,000,000.00

150,000,000.00

200,000,000.00

250,000,000.00

300,000,000.00

350,000,000.00

400,000,000.00

450,000,000.00

NBI Enforcement Data

(January-October)

2006 2007 2008 2009

2006 2007 2008 2009

23

IPRD-NBI’s performance for the period January to October 2009 improved

compared to the same period for the following years: 2008 (up by 17.95% or

P66,941,385.58); 2007 (up by 84.76% or P201,766,280.00); and 2006 (up by 103.43% or

P223,603,640.00).

The Opt ical Media Board (OMB) - OMB conducted 1,052 operat ions (1,029 by

inspect ions, 12 plant audits and 11 search warrants) and seized 3,542,652 pieces of

opt ical discs and 3 replicat ing machines valued at P1,114,115,675.00. Other art icles

and equipment seized include: 10 DVD players, 18 televisions, 33 CPU’s, 6 amplif iers

and 9 speakers and 2 sub-woofers, 1 LCD and CRT Monitor, 33 stampers and 3

replicat ing machines. (Annex “C”)

OMB’s performance for the period January to October 2009 improved

compared to the same period for the following years: 2008 (up by 19.16% or

P264,114,875.00); 2007 (up by 11.16% or P111,916,365.00); and 2006 (up by 1,069.01%

or P1,018,811,575.00).

95,304,100.00

1,002,499,310.00

1,378,230,550.00

1,114,115,675.00

-

200,000,000.00

400,000,000.00

600,000,000.00

800,000,000.00

1,000,000,000.00

1,200,000,000.00

1,400,000,000.00

OMB Enforcement Data

(January-October)

OMB is determined to track down businesses that cont inue to use pirated and

unlicensed software. Thus, it intensif ied its drive against the product ion and

distribut ion of illegal software. It coordinated with the Philippine Economic Zone

Authority (PEZA) to require its locators engaged in businesses covered by Republic

Act No. 9239 (Opt ical Media Act) to secure licenses, clearances, permits, or

accreditat ion from the OMB.

In line with this, the OMB has streamlined its licensing, registrat ion, and

accreditat ion procedures, and shall establish and conduct a mobile one-stop shop

licensing accommodat ion for business establishments operat ing inside the PEZA.

2006 2007 2008 2009

24

OMB will authorize PEZA to accept and pre-process its locators’ applicat ions for

licenses, clearances, permits or accreditat ions.

PEZA agreed to t ie up with OMB in this campaign, as they are fully aware of

the harm that software piracy does to businesses legit imately engaged in opt ical

media reproduct ion and distribut ion.

The IP Unit- Bureau of Customs (IPU-BOC) - IPU-BOC issued 12 Warrants of

Seizure and Detent ion and conf iscated 496,041 pieces and 823 boxes of fake goods

with an est imated value of P948,408,036.00. (Annex “D”)

IPU-BOC’s performance for the period January to October 2009 improved

compared to the same period for the following years: 2008 (up by 69.52% or

P388,956,760.35); 2007 (up by 12.15% or P102,750,215.80); and 2006 (up by 37.24% or

P257,391,796.00).

691,016,240.00

845,657,820.20

559,451,275.61

948,408,036.00

-

200,000,000.00

400,000,000.00

600,000,000.00

800,000,000.00

1,000,000,000.00

BOC 2009 Enforcement Data

(January-October)

Special Sectoral Campaigns

Software Piracy – Since August 2005 when it started its crackdown against

businesses using or selling illegal software, the “Pilipinas Ant i-Piracy Team” (PAPT)11

has conf iscated almost P388,404,494.00 worth of conf iscated computers, pirated

software and installers.12 In 01 January to 18 November 2009, PAPT conducted 13

11 The NBI, OMB and PNP, together with the IP Coalition, have banded together to launch the “Pilipinas Anti-Piracy Team” (PAPT), a campaign that aims to curb

software piracy in the Philippines. BSA, the foremost organization promoting the use of original and licensed software, is supporting the campaign. At the

launch, the five organizations signed a memorandum of understanding (MOU) that spelled out the objectives and action plans of the campaign.

12 2009 (01 January to 18 November): Almost P94,000,000.00 (13 raids)

2008: P105,000,000.00 (30 raids)

2007: P121,278,500.00 (55 raids)

2006 2007 2008 2009

25

operat ions conf iscat ing almost P94,000,000.00 worth of conf iscated computers,

pirated software and installers. OMB has conducted unannounced and random visits

to 85 businesses nat ionwide to complement the PAPT educat ional campaigns and the

raids conducted by the NBI and the PNP.

The PAPT cont inues to make headway in its crusade against the use of pirated

and unlicensed software in businesses nat ionwide. The PAPT celebrated four (4) years

of software ant i-piracy success since its incept ion in 2005. The PAPT is considered a

unique init iat ive in addressing piracy problems. It marked the f irst t ime in the

enforcement of ant i-piracy laws in the Asia Pacif ic region that three different

government agencies came together in a unif ied stance against software piracy. BSA

consultant for the Philippines Atty. Bien Marquez cited PAPT’s signif icant

contribut ion in bringing down the software piracy rate in the country. “The interplay

of enforcement, educat ion and policy init iat ives is crucial in eliminat ing software

piracy in the country. PAPT’s enforcement operat ions and educat ional init iat ives have

been instrumental in intensifying the country’s f ight against software piracy,”

reported Marquez.13

The Business Software Alliance commended the Philippine government,

specif ically the PAPT, of the latter’s efforts to stamp out software piracy in the

country and intensifying said efforts through its current “Don’t Wait Unt il It’s Too

Late!” campaign.14 The campaign was launched on 17 February 2009.

There were signif icant PAPT operat ions that took place this year.

The Ant i-Fraud and Commercial Crimes Division (AFCCD) of the Philippine

Nat ional Police (PNP) seized a total of 173 computers during a raid against Pinoy Data

Capture, Inc. in Makat i City on 22 April 2009. The operat ives found the computers

loaded with unlicensed and pirated copies of Adobe and Microsoft software with an

est imated value of P9 million.15

2006: P55,722,294.00 (22 raids)

2005: P12,403,700.00 (12 raids)

13 PAPT celebrates 4 years of software anti-piracy success since inception: PAPT vows continued enforcement against errant businesses that ignore call to

use only genuine licensed software, Wednesday, August 26, 2009. (http://www.papt.org.ph/news.aspx?id=2&news_id=104&paging=1)

14 BSA cites RP’s intensified drive against piracy, Manila, Philippines – March 18, 2009

(http://www.bsa.org/country/News%20and%20Events/News%20Archives/enPH/2009/enPH-03182009-paptcampaign.aspx)

15 PAPT raids Makati outsourcing firm, seizes 173 computers paralyzing its global business servicing, Thursday, April 30, 3009.

(http://www.papt.org.ph/news.aspx?id=2&news_id=98&paging=1)

26

Agents of the Nat ional Bureau of Invest igat ion’s Ant i-Fraud and Computer

Crimes Division (NBI-AFCCD) swooped down two Makat i-based companies and seized

26 desktops and 2 laptops from Underground Logic Inc. and 11 desktops and 1 laptop

from PEG South East Asia, Inc. found loaded with unlicensed and pirated copies of

various Autodesk engineering design and mult imedia software programs with an

accumulated est imated value of P25 million.16

On 17 March 2009, AFCCD-PNP served search warrants against NSB

Engineering Design & Fabricat ion and a total of 34 computers which were conf irmed

during the raid to be loaded with unlicensed software with an est imated value of

P10.6 million were conf iscated.17

Agents of the Opt ical Media Board (OMB) swooped down on off ices in

Pampanga, commencing crackdown of the PAPT against using unlicensed and pirated

software in North and Central Luzon. The OMB inspect ions resulted in the seizure of

computers loaded with unlicensed and pirated copies of software from some of the

inspected businesses that are operat ing inside the Clark Economic Zone in Angeles

City, Pampanga. Those that were found to have insuff icient licenses for their software

were given 30 days by the OMB to correct this problem and submit an inventory of

their computers and software to the OMB off ice. Those who fail to comply will be

subjected to the necessary legal act ions.18

Cable Piracy – On 16 January 2008, a Complaint for Copyright Infringement

with Applicat ion for Issuance of Temporary Restraining Order (TRO) and Writ of

Preliminary Injunct ion was f iled against a certain Alfredo Imperial Perdon, owner of

Turtle Cable Network, at the Bureau of Legal Affairs (BLA) of IP Philippines.19 On 13

May 2008, an Order was issued by BLA grant ing Complainants applicat ion for

issuance of TRO. The TRO was issued on 03 June 2008 upon f iling by Complainants of a

16 PAPT drive vs. software pirates continues with raid on 2 Makati firms; NBI chief warns companies to legalize before it’s too late, Friday, May 29, 2009.

(http://www.papt.org.ph/news.aspx?id=2&news_id=102&paging=1)

17 PAPT raids engineering, design and fabrication company in Taguig, Thursday, March 19, 2009.

(http://www.papt.org.ph/news.aspx?id=2&news_id=94&paging=1)

18 Software piracy crackdown starts in North and Central Luzon, Thursday, April 02, 2009.

(http://www.papt.org.ph/news.aspx?id=2&news_id=100&paging=1)

19 Satellite Television Asian Region Limited vs. Alfredo Imperial Perdon, doing business as Turtle Cable Network (IPV No. 10-2008-00003); Cable News Network

LP, LLLP, Region Limited vs. Alfredo Imperial Perdon, doing business as Turtle Cable Network (IPV No. 10-2008-00004); BBC World Limited vs. Alfredo Imperial

Perdon, doing business as Turtle Cable Network (IPV No. 10-2008-00005) and AXN Holdings, LLC vs. Alfredo Imperial Perdon, doing business as Turtle Cable

Network (IPV No. 10-2008-00006).

27

cash bond in the amount of P300,000.00. The hearing on the applicat ion for the

issuance of a Writ of Preliminary Injunct ion was set on 25 June 2008 and 27 June 2008

for the recept ion of Respondent’s evidence. On 30 June 2008, Complainants’

applicat ion for the issuance of a Writ of Preliminary Injunct ion was granted. On 20

August 2008, a writ of injunct ion was issued upon Complainants’ post ing of a cash

bond of P400,000.00.

On 19 June 2009, a Judgment Based on Compromise Agreement was

promulgated. IP Philippines decision barred Turtle Cable Network from re-distribut ing

internat ional cable channels for which it does not have a distribut ion contract. Turtle

Cable Network has also issued an apology letter.

The case of Discovery Communicat ions-Europe, et al. vs. Estrellita Juliano-

Tamano et al. (I.S. No. 2006-002 to 2006-013 for violat ion of RA 8293), which has

become a test case for the DOJ and for the campaign against cable piracy, is now

being lit igated at the Regional Trial Court at Cotabato City.20 During the hearing on 25

February 2009, complainants, through counsel and the public prosecutor reiterated

their arguments in their manifestat ion and mot ion to resolve, with prayer to reverse

and set aside the order of the court. In turn, counsel for accused stated their defenses.

Thereafter, the court in an order dated 25 February 2009, directed counsels for

complainants and accused to reduce their respect ive arguments in writ ing. The

pleadings are pending resolut ion.

“Flicker” or Camcorder Piracy – House Bill No. 5699 (Ant i-Camcording Act of

2008), authored by Representat ive William Irwin C. Tieng, is pending in the House of

Representat ives. It was f iled on 18 December 2008 and was approved on third reading

on 11 February 2009. The bill was f iled in the Senate request ing for concurrence on 16

February 2009. The bill was read on f irst reading and referred to the Committees on

Public Informat ion and Mass Media and Trade and Commerce on 17 February 2009. A

public hearing of Senate Committee on Public Informat ion and Mass Media and

Committees on Trade and Commerce was conducted on 11 August 2009.

20 03 January 2006, Complainants (Discovery Communications-Europe, National Geographic Channel, AXN Holdings, Turner Entertainment Networks, Asia,

ESPN Sp. et. al.) filed 12 separate complaints for violation of R. A. No. 8293 against Estrellita T. Juliano-Tamano, et. al. On 21 November 2006, a Resolution was

issued by the investigating prosecutor finding probable cause against respondents Estrellita T. Juliano-Tamano et. al. for violation of R.A. No. 8293 (Section 177 in

relation to Section 217), and filed the corresponding 94 Informations with the RTC, Cotabato City. 08 May 2007, Respondents filed a Petition for Review with the

Secretary of Justice.

28

Anti-Book Piracy Coalit ion or ABC – The NBDB and OMB had three meet ings

on 27 February 2009, 24 April 2009 and 09 May 2009 with representat ives from the

Publishers’ Representat ives Organizat ion of the Philippines (PROP), to discuss the

possibility of creat ing a coordinat ing body for enforcement act ions against suspected

book pirates who il legally download or distribute copyrighted content such as

textbooks, reference books, journal art icles in printed or CD formats.

Present in one of those meet ings were Mr. Edwin Macabenta (formerly head of

PROP and representat ive of Oxford University Press), Jonas Lucena (John Wiley &

Sons Asia Pte Ltd), Jenny Javier (PROP and Simon and Schuster), Rolando de Vera

(Cambridge University Press) and Atty. Frank Naic (Legal Off icer of C&E Publishing), a

non-PROP member. C&E Publishing init iated a raid with the NBI-IPRD in June 2008,

which netted 400 pieces of C&E reproduct ion / books amount ing to P120,000.00.

Stumbling blocks that make PROP hold back in joining ABC, as voiced by its

representat ives include: the need to seek permission from their respect ive principals;

the group’s f inancial capacity to f inance raids; and the need to update the

organizat ion’s documents with the Securit ies and Exchange Commission so that they

may sign contracts as an organizat ion.

Thus, to get the organizat ion going, the NBDB invited FILCOLS and the Book

Development Associat ion of the Philippines (BDAP), one of the biggest publishers’

groups in the country, to be part of ABC, a coalit ion of both government and the

organizat ions represent ing authors, publishers, and the copyright owners. The

coordinat ing body, init ially called Ant i-Book Piracy Coalit ion or ABC will be similar to

PAPT (Pilipinas Ant i-Piracy Team), a successful coordinat ing body for enforcement

act ion for the software industry.

On 07 May 2009, the NBDB Board passed Board Resolut ion 09-172 approving

the membership of NBDB in the Ant i-Book Piracy Coalit ion as well as the draft

Memorandum of Understanding (MoU) between the NBDB, IP Philippines, Opt ical

Media Board, Nat ional Bureau of Invest igat ion, Philippine Nat ional Police, BDAP and

FILCOLS. The formal signing of the MoU among partner agencies and organizat ions

will be scheduled once the MOU has been f inalized.

IV. Judicial Reforms and Alternative Remedies

The challenges IP owners face in the Philippine courts are the same challenges

29

some other sectors of society are confronted with. Reforming the Judiciary is the basic

thrust under the leadership of Chief Just ice Reynato S. Puno. Under his watch, special

courts were set up for human rights violat ions and extrajudicial killings and

environmental courts. He has publicly and privately stated the Judiciary’s

commitment to the creat ion of Special IP courts.

Special IP Courts: Enabling the Courts for IPR Lit igat ion

A proposal to set up special IP courts with special rules was presented by IP

Philippines and the community of IP stakeholders to Chief Just ice Reynato S. Puno

during the 2009 IP Colloquium for the Judiciary on 26 October 2009. The idea behind

special IP courts is to develop expert ise in the highly specialized and technical f ield of

IP lit igat ion. This is in response to Chief Just ice Puno’s call for the review of “exist ing

rules of procedure and to suggest ways to improve them to suit the substant ive and

procedural aspects of IP lit igat ion.”

Some major features of the draft special rules for IP lit igat ion are as follows:

1. Designat ion of Selected Commercial Courts in the Nat ional Capital Region (NCR) as

Special IP Courts to Try Violat ions of IPR Nat ionwide - The idea is to allow selected

judges to specialize in IP and improve the quality of IP decisions. Since creat ing

specialized courts requires considerable resources, the proposed rules recommend

the designat ion of the commercial courts in Manila, Makat i City, Quezon City,

Pasig City and Mandaluyong City as “Special IP Courts” with nat ional jurisdict ion.

Although these courts will have concurrent jurisdict ion with other regional trial

courts, the IP stakeholders (IP owners, IP pract it ioners and judges who were

consulted by IP Philippines) believe that more cases will be f iled with these

“Special IP Courts” than with commercial courts in the provinces. Increasing

volume of IP cases concentrated in selected courts, the judges in these special

courts will develop the expert ise in IP cases, thus, hastening lit igat ion and raising

the quality and consistency of decisions. Different stakeholders welcome this

move.

2. Streamlining the Lit igat ion Process for Eff iciency and Expediency - Several

posit ions on the rules on summary procedures have been incorporated into the

proposed rules to expedite the adjudicat ion process. By prohibit ing a number of

pleadings, requiring verif ied complaints and answers, submission of aff idavits in

30

quest ion and answer form, narrowing condit ions for certain acts, shortening

wait ing periods, and requiring cont inuous trial, IP lit igat ion is expedited. Further,

certain aspects of the general rules of procedure that are ambiguous, irrelevant or

inapplicable to IP cases, result ing in unnecessary delays and t ime-consuming

content ions, have been ident if ied by lawyers and judges during the consultat ions.

The proposed rules have addressed said issues and provided solut ions, specifying

clearer steps and presumpt ions of evidence to avoid addit ional incidents in

lit igat ion.

3. Destruct ion of Counterfeit Goods and Making Judgments Immediately Executory -

One of the most important concerns of IP owners in IP lit igat ion is the expensive

storage cost of seized counterfeit goods throughout the period of lit igat ion and

appeal. The proposed rules allow IP courts to order the destruct ion of the seized

counterfeit goods upon mot ion and evidence presented. The rules also make the

decisions of the IP courts immediately executory except with regard to damages

and attorneys fees.

4. Technical Advice and Assistance for IP Courts - Owing to the technical nature of

patent lit igat ion, the proposed rules provides a way for the courts to seek

technical advise and have access to technical facilit ies from the Intellectual

Property Off ice to aid them in trying patent cases.

5. Judicial Dispute Resolut ion and Mediat ion - As an alternat ive to adjudicat ion, the

proposed rules allow part ies to go into mediat ion while authorizing judges to

conduct judicial dispute resolut ion.

Cases in Courts

As of 30 September 2009, the Off ice of the Court Administrator, Supreme

Court, reported that there are 479 IPR violat ions cases pending nat ionwide, with 355

cases in the courts of the NCR. The following courts have the largest volume of cases:

Manila-Branch 46 (82), Quezon City-Branch 90 (73) and Pasig City-Branch 158 (30).

On 23 November 2009, the Court of Appeals (CA) 12th Division aff irmed the

Joint Decision of the Regional Trial Court (RTC) Branch 138 of Makat i City dated 29

July 2005 in Criminal Case Nos. 03-2400 and 03-2401. The RTC and CA found Fu Lin

Gut ierrez and Simon Chan guilty of 2 counts of Trademarks Infringement and imposed

the penalty of 2-5 years of imprisonment and a f ine of P100,000.00 in each count.21

21 Reported by Bengzon Negre Untalan IP Attorneys to IP Philippines on 27 November 2009.

31

DOJ’s Task Force on Ant i-IP Piracy Task Force (DOJ-TFAIPP)

As of October 2009, the DOJ-TFAIPP had a total inventory of 46 cases for

disposit ion, consist ing of 4 new cases and 42 cases pending as of 31 August 2009. Out

of the 46 cases for disposit ion, 10 cases were disposed. Currently, the total number of

cases pending for preliminary invest igat ion is 36.

Administrat ive Adjudicat ion in IP Philippines: A Viable Alternat ive

In its efforts to better serve IP stakeholders, IP Philippines through its Bureau

of Legal Affairs (BLA) has been cont inually improving its system and streamlining its

processes in order to provide eff icient and expedit ious disposal of cases to secure

redress for IP violat ions. Thus, the BLA is f inalizing its Amended IPV rules and has

incorporated thereto the rules on use and admission of e-evidence. Also, it has

already drafted the Benchbook for its hearing off icers. The Amended Mediat ion Rules

and Regulat ions is also underway.

For IPV cases, the BLA resolved 10 cases for the period of January-October

2009 with an average turn around t ime of 19 months. The BLA has committed to

further reduce the turn around t ime of resolving IPV cases from 19 months to 12

months from the f iling of the complaint upon the amendment of the IPV rules and

regulat ions.

Local Governments

On 12 January 2009, the City Council of Mandaluyong enacted Ordinance No.

426 (An Ordinance Prohibit ing and Penalizing the Use of Any Visual Recording Devise

Inside any Mot ion Picture Exhibit ion Facility Within the City of Mandaluyong). On 29

January 2009, City Mayor Benjamin C. Abalos Jr. signed the ordinance.

The City Council of Manila enacted Ordinance No. 8162 (Film Protect ion

Ordinance of Manila of 2008) on 08 July 2008. Mayor Alfredo S. Lim signed the

ordinance on 18 July 2008.

The passage of the ordinances is signif icant because this recognizes the

important role of local government units in IPR enforcement and in fostering a local

environment attract ive for businesses and investments.22

22 Then Secretary of the Department of the Interior and Local Government (DILG) Jose D. Lina, issued Memorandum Circular No. 2003-229 dated 08 December

2003 enjoining provincial governors, city and municipal mayors and regional directors to help enforce IPR in the country by initiating and proposing to their

sanggunians, the adoption of ordinances to curtail the sale, rental, transfer, distribution, manufacture or production of pirated, counterfeit or fake goods or

32

V. Legislative and Policy Reforms

As ment ioned above, some policy reforms were geared towards

inst itut ionalizat ion within the Execut ive branch. This sect ion deals with the IP

Legislat ive Agenda in the Philippine Congress.

Republic Act No. 9502 (Universally Accessible Cheaper and Quality Medicines

Act of 2008)

President Gloria Macapagal-Arroyo signed into law Republic Act No. 9502 on

06 June 2008.23 The law amends specif ic sect ions of RA 8293 (Intellectual Property

Code), RA 6675 (The Generic Act of 1988), and RA 5921 (The Pharmacy Law). The

DOH-DTI-IPO-BFAD Joint Administrat ive Order 2008-01 (IRR for R.A. No. 9502) was

signed on 04 November 2008.24

The guidelines for the implementat ion of compulsory licensing/government

use provisions under RA 9502 will be formulated by IP Philippines. Currently, a

comparat ive matrix on procedures and t imelines for grant ing compulsory licensing

based on RA 9502 and RA 8293 is being prepared.

The Manual of Substant ive Patent Examinat ion Procedures (MSPEP) is being

reviewed for possible amendments. IP Philippines and BFAD are in the process of

substant ive consultat ions, wherein two (2) coordinat ion/consultat ion meet ings have

already been held.

House Bill No. 5699 (Ant i-Camcording Act of 2008)

On 18 December 2008, Representat ive William Irwin C. Tieng f iled House Bill

No. 5699. The bill was read and was referred to the Committee on Rules. The bill was

approved on second reading on 21 January 2009 and on third reading on 11 February

2009. Representat ives Irwin C. Tieng et al. f iled the bill in the Senate request ing for

concurrence on 16 February 2009. The bill was read on f irst reading and referred to

services. On 11 March 2008, Secretary of the Interior and Local Government, Ronaldo V. Puno, issued a memorandum to all Regional Directors of the Interior and

Local Government reiterating DILG Memorandum No. 2003-229.

23 Published in two newspapers of general circulation on 19 June 2008.

24 Published on 06 November 2008 and took effect on 21 November 2008.

33

the Committees on Public Informat ion and Mass Media and Trade and Commerce on

17 February 2009. A public hearing of Senate Committee on Public Informat ion and

Mass Media and Committees on Trade and Commerce was conducted on 11 August

2009.

House Bill No. 0190 (An Act Def ining Cybercrime, Providing for Prevent ion,

Suppression and Imposit ion of Penalt ies Therefor and for Other Purpose)

02 July 2007, Representat ive Juan Edgardo M. Angara f iled House Bill No.

0190. The bill was read and primarily referred to the Committee on Just ice on 24 July

2007. On 11 November 2008, the bill was referred to the Committee on Informat ion

and Communicat ions Technology. The Committee on Appropriat ions on 20 May 2009

approved the bill. Subst ituted by House Bill No. 6794.

House Bill No. 1323 (An Act Prevent ing and Penalizing Computer Fraud,

Abuses and Other Cyber-Related Fraudulent Act ivit ies, and Creat ing for the Purpose

the Cyber-Crime Invest igat ion and Coordinat ing Center, Prescribing Its Powers and

Funct ions, and Appropriat ing Funds Therefor)

On 25 July 2007, Representat ive Eric D. Singson f iled House Bill No. 1323. The

bill was read on 07 August 2007 and was primarily referred to the Committee on

Just ice on 22 August 2007. The bill was referred to the Committee on Informat ion and

Communicat ions Technology on 22 August 2007. The Committee on Appropriat ions

on 20 May 2009 approved the bill. Subst ituted by House Bill No. 6794.

House Bill No. 1409 (The Ant i-Cable Television and Cable Internet Pilferage

Act of 2007)

On 26 July 2007, Representat ive Joseph A. Sant iago f iled House Bill No. 1409.

The bill was read and referred to the Committee on Informat ion and Communicat ions

Technology on 07 August 2007. The bill was approved on second reading on 30 April

2008.

The bill was approved on third reading on 12 May 2008, and was transmitted to

the Senate on 12 May 2008. Representat ives Joseph A. Sant iago et al. as authors f iled

the bill in the Senate request ing for concurrence on 15 May 2008. It was read on f irst

reading and referred to the Committees on Public Informat ion and Mass Media and

34

Just ice and Human Rights on 19 May 2008. A Joint Committee meet ing/hearing was

conducted on 18 February 2009.

Senate Bill No. 880 (An Act Amending Certain Provisions of Republic Act No.

8293 or the Intellectual Property Code of the Philippines and for Other Purposes)

On 03 July 2007, Senator Edgardo J. Angara f iled Senate Bill No. 880 (The

Internet Treat ies (WIPO Copyright Treaty [WCT] & WIPO Performances & Phonograms

Treaty [WPPT]). The bill was read on First Reading on 04 September 2007 and is now

pending with the Committee on Trade and Commerce.25

House Bill No. 5208 (Technology Transfer Act of 2008)

On 24 September 2008, Representat ive Joseph Emilio A. Abaya f iled House Bill

No. 5208. The bill was read on 29 September 2008 and referred to the Committee on

Rules. It was approved on second reading on 06 October 2008 and on third reading on

17 November 2008.

Representat ives Joseph Emilio A. Abaya et al. f iled the bill in the Senate

request ing for concurrence on 20 November 2008. The bill was read on f irst reading

and referred to the Committees on Trade and Commerce, Science and Technology and

Finance on 25 November 2008. On 09 July 2009, a technical working group was

conducted. It was returned jointly by the Committees on Trade and Commerce,

Science and Technology and Finance per Committee Report No. 565 recommending

that it be considered in Senate Bill No. 3416 (SB No. 3416). The Committee Report was

submitted to the Senate and considered in SB No. 3416 on 01 September 2009. On 16

November 2009, SB No. 3416 was approved on second reading.

House Bill No. 6938 in substitution of House Bill No. 3741 and 4217 (An Act

Amending Certain Provisions of Republic Act No. 8293 ent itled “An Act Prescribing

The Intellectual Property Code And Establishing The Intellectual Property Off ice,

Providing For Its Powers And Funct ions And For Other Purposes”)

On 11 March 2008, Representat ive Rufus B. Rodriguez f iled House Bill No.

3741. The bill was read on 12 March 2008 and referred to the Committee on Trade and

Industry. Subst ituted by House Bill No. 6938. Bill reported out on 16 October 2009.

25 In October 2002, the GRP acceded to the WCT and WPPT. The accession made the provisions of the treaties part of the laws of our land. However, IP

Philippines is of the view that the amendments will make our organic laws one of the most modern in the world.

35

House Bill No. 6938 will be read on second reading on 02 December 2009.

House Bill No. 1949 (An Act Declaring it Unlawful to Illegally Reproduce

Copyrighted Books and Printed Materials Through Photocopying, Duplicat ing,

Print ing or Similar Means Without the Written Consent of the Copyright Owner

Whether the Publisher or the Author or Both Amending for the Purpose R.A. 8293)

On 08 August 2007, Representat ive Rufus B. Rodriguez f iled House Bill No.

1949. The bill was read on 22 August 2007. It was referred to the Committee on Trade

and Industry.

House Bill No. 1033 (An Act Penalizing Mall and Store Owners Engaging in the

Sale of Contraband Products)

On 11 July 2007, Representat ive Jose G. Solis f iled House Bill No. 1033. The bill

was read on 01 August 2007. It was referred to the Committee on Trade and Industry.

The proliferat ion of proposed bills on IPR and IPR-related matters is a strong

indicat ion of the impact of the public outreach and advocacy projects of the GRP. Just

as a const ituency for IPR has been expanding in the country, the Philippine Congress

is showing broader support for IPR. Some of these bills are in the f inal stages of the

legislat ive process and there is st ill a probability for a few of them to be enacted into

law in early 2010.

VI. International Cooperation for IPR

Fostering cooperat ion with other IP off ices, mult ilateral inst itut ions like the

World Intellectual Property Organizat ion (WIPO) and the World Trade Organizat ion

(WTO), and regional groups like the Associat ion of Southeast Asian Nat ions (ASEAN)

and the Asia Pacif ic Economic Cooperat ion (APEC) is a strategic component of

establishing a sound and balanced IP system in the Philippines.

These cooperat ion agreements allow GRP to build up its IP infrastructure, learn

36

and share best pract ices with other countries, and align the Philippine IP system with

trends and standards in the internat ional IP system.

Chairmanship of AWGIPC

The most signif icant development for the GRP this year is the turn over of the

Chairmanship of the ASEAN Working Group on Intellectual Property Cooperat ion

(AWGIPC) to the Philippines. The country is in a unique posit ion in the next two years

to steer the ASEAN IP off ices towards stronger regional arrangements consistent with

the ASEAN Blueprint for an ASEAN Economic Community (AEC) in 2015.

This year the AWGIPC launched the f irst patent regional cooperat ion project

called the “ASEAN Patent Examinat ion Cooperat ion (ASPEC).” ASPEC allows patent

examiners in the region to share examinat ion reports to reduce the t ime and cost of

grant ing patent registrat ions in the region.

The second regional project launched this year under the Philippines’

Chairmanship is “IP DIRECT”, a useful and comprehensive one-stop resource for

businesses and other interested part ies. The IP DIRECT provides informat ion

pertaining to ASEAN Member States’ IP legislat ion, dispute resolut ion bod ies, sources

for grants/loans and government incent ives for investment in technology and R&D,

technology transfer/licensing off ices, rights management organizat ions and IP

awareness and public educat ion. Informat ion in the Directory is organized along the

framework of the IP value-chain, namely, invent ion/innovat ion, IP protect ion, IP

exploitat ion and enforcement.

Moreover, the AWGIPC is strengthening its cooperat ion programs with its

“dialogue partners,” namely WIPO, the European Patent Off ice (EPO), the United

States Patent and Trademark Off ice (USPTO), the Japan Patent Off ice (JPO), the State

Intellectual Property Off ice of China (SIPO), and other inst itut ions.

In its second meet ing in 2009 at Siem Reap, Cambodia, the Chair led the

AWGIPC members in welcoming the representat ives of some of these off ices and in

discussing issues of mutual interest, and among them is the capacity building

program for the next two years.

Bilateral Cooperat ion Agreements

37

IP Philippines has bilateral cooperat ion agreements with WIPO, the EPO and

the USPTO and is opening cooperat ive t ies with China’s SIPO.

USPTO

The MOA with USPTO, signed on 28 January 2007, was a successful two years

of cooperat ive act ivit ies in training and capacity building on IPR enforcement and

other areas. Signif icantly, the Philippines has become a source of resource speakers

on various IP topics in the training programs of the USPTO with AWGIPC in the region.

Recently, upon invitat ion of the USPTO, the IP Philippines signed a

Memorandum of Cooperat ion with the United States Patent and Trademark Off ice

(USPTO), the Off ice for the Harmonizat ion of the Internal Market (OHIM), and the

Japan Patent Off ice (JPO). The purpose is that the Trilateral Partners maintain a

Trilateral Ident if icat ion List, which is a compilat ion of ident if icat ion of goods and

services that, if entered into an applicat ion for trademark registrat ion that is

submitted to any of the signatories Partners, will be accepted by each of those

partners. This MOA is considered a milestone in the t ies of cooperat ion between IP

Philippines and the USPTO.

RP-US Trade Investment Council (TIC) Meet ings on IPR

Under the Trade and Investment Framework Agreement (TIFA), the Nat ional

Committee on Intellectual Property Rights (NCIPR) and the Off ice of the United States

Trade Representat ive (USTR) conducted a videoconference on 22 January 2009 to

discuss technical issues on IP.

On 23 March 2009, the Director General of IP Philippines met Assistant USTR

for Southeast Asia & the Pacif ic, Barbara Weisel, to discuss cooperat ion on IPR

promot ion and protect ion.

As part of the regular dialogue with USTR, the NCIPR convened to meet Ms.

Rachel Bae, Director of IP and Innovat ion, USTR, on 08 June 2009 to discuss the Out-

of-Cycle review. On 09 June 2009, IP Philippines’ off icials met with Ms. Bae to discuss

the implementat ion of Republic Act No. 9502 (Universally Accessible Cheaper and

38

Quality Medicines Act of 2008).

These regular meet ings help develop a better understanding of the concerns

of both part ies as they pertain to IPR and enable the partners to resolve issues. The

discussions have been open and fruitful the past few years, owing in large part to a

more cohesive GRP panel for IPR issues.

CONCLUSION

39

The GRP’s holist ic strategy to establish a strong, balanced and viable IP system

has made remarkable progress. The different components of this strategy address the

issues and challenges posed by IP to developing countries and how the IP system can

contribute to a country’s goals of eradicat ing poverty, providing quality educat ion

and public health, and other fundamental needs. Although it may be tempt ing to

single out one dimension or indicator, be it the amount of fake foods seized or

violators in jail, it would be short sighted and detrimental to the long term object ive.

It is crucial to view the ent ire effort to strengthen the IPR regime, with its different

components and strategies, from a broader and longer perspect ive. This is the only

logical and pract ical way to gauge the strategy’s effect iveness. At this stage of

implementat ion, the gains over the past four years, especially in public acceptance

and legit imacy of the IP system, are tremendous, and the GRP is convinced that this

trend of improvements is irreversible.

Time is an important factor. A strong and viable IP system that provides

benef its to IP owners and the public, as history proves, cannot be established in a year

or a number of years, even with suff icient resources. Developed countries, with

abundant resources, had to undergo changes over long periods of t ime and yet today,

st ill face diff icult problems in IPR violators. Small and rich countries like Singapore,

the United Arab Emirates (UAE) and Taiwan took several years to reform inst itut ions,

train personnel, t ighten border controls, and invest in equipment and facilit ies to

strengthen their own IP regimes.

Indeed, the size of the state – territory and populat ion – and its level of

economic development are crit ical factors in establishing a sound and effect ive IP

system. Needless to say, in developed states that benef it immensely from IP, their IP

regimes evolved over decades into stable and effect ive systems that truly promote

creat ivity and innovat ion. Smaller states with manageable borders, like Switzerland,

that rank high in innovat ion rat ings, have had clear advantages.

In the case of the Philippines in the past four years, despite its size, populat ion,

and archipelagic coastline, remarkable improvements and signif icant changes have

been taking place in the country’s IP system.

40

Investment of t ime and resources on inst itut ions like the NCIPR and the IPRTI

has caused a dramat ic increase of 328.47% of conf iscated fake goods from the 2005

total haul. Since the GRP formed the inter-agency committee that year, enforcement

operat ions have been growing at an annual average rate of about 49.14% in terms of

the amount of fake items seized. The cont inuing rise in enforcement operat ions show

that law enforcement agencies have regained substant ial credibility in the eyes of IP

owners without whom operat ions cannot be carried out except, of course, for one

agency, the OMB.

More challenging than the Execut ive department is the Judiciary, and

understandably so. As an inst itut ion, it has more than its fair share of burdens, with

clogged dockets, vacant judgeships and extremely limited resources. Yet, despite all

these factors and zeal to safeguard its independence as a separate and co-equal

department, the Judiciary has opened its doors to not only the Execut ive, but to the IP

community, to improve its internal processes and programs. In less than four years,

the Judiciary has issued rules for civil warrants, included IPR in its commercial courts,

revised its judge’s training program to include IPR, monitored IPR cases separately

from other cases, appointed the IP Philippines’ Director General to the Supreme

Court’s Sub-committee on rules revisions, and made public commitments to create

Special IP Courts. The latest development is the Court’s decision to review a draft of

special rules for IPR lit igat ion, crafted by the IP community, and to apply them in

selected Special IP courts in the country.

Congress, where IP bills were too few and far between a few years ago, is now

experiencing a gamut of proposed legislat ion on IP and IP related subjects. More

legislators are interested in IP and IPR, seeing its value for their const ituents and for

the country as a whole. Major IP bills have passed or are about to pass in the Lower

House and are in the f inal stages in the Upper House, when four years ago they would

languish in sub-committees. There is st ill some t ime for a major bill or two to become

law in 2010, but what is signif icant is that Congress has undergone a change favorable

to IPR just like the Judiciary.

41

Solidly support ing these governmental inst itut ions are partnerships and

linkages with private organizat ions and associat ions. They are too numerous to

ment ion one by one; these relat ionships, nurtured in the past few years, span across

the archipelago and are strongest in the urban centers where IPR infringements are

found. They cut across pract ically all sectoral inst itut ions, chambers of commerce,

industry associat ions, trade organizat ions, universit ies, research and development

inst itut ions, professional organizat ions, art ists’ associat ions, writers’ unions,

performance art ists’ guilds, musicians’ associat ion, copyright management

organizat ions, advert ising bodies, journalists’ associat ions, indigenous groups, high

schools, and youth clubs. The breadth of public-private partnerships cult ivated over

the past three to four years has been quietly and steadily permeat ing the social fabric

of the country.

This year was a turning point in reaching out to all these sectors with the

creat ion of IP satellite off ices in strategic locat ions around the country. Five of these

off ices, mainstreamed into the f ield off ices of the DTI, have brought IP closer to

people who would otherwise know nothing about IPR, much less the implicat ions of

IPR violat ions on the nat ional welfare. The IP Philippines’ evolut ion to a truly nat ional

off ice has extended the reach of the GRP in raising public awareness and advocacy for

the protect ion and promot ion of IP as a tool for nat ional development, thus

broadening the const ituency support for the IP system.

Inst itut ion building and public-private partnerships have made a powerful

impact on the GRP’s public outreach programs to inform and educate society about

the importance to the country of IP. Actually, all three have been reinforcing each

other.

The interplay of these three components and their strategies has been

changing the public face of IPR in the country. Three to four years ago, there was very

little awareness about IPR in general, and whatever percept ion knowledgeable

segments of the populat ion had about IPR was negat ive. To be candid, IPR was

perceived as something that benef ited only large foreign mult inat ional companies

backed up by developed states. But, this percept ion has been effect ively challenged

42

and countered as evidenced by the large demand for seminars, increases in local

applicat ions (trademarks, ut ility models, industrial design and patents from

universit ies/RDIs), and enhanced media exposure about IP and related matters. With

IP awareness and advocacy act ivit ies taking off in school campuses around the

country using IP policies in 29 university campuses, IP support is gett ing another

boost. In sum, there all ready exists in the country a broad const ituency of

stakeholder support for IPR, and it grows stronger with t ime.

Playing a wider and responsible role in the internat ional IP community

completes the mult i-faceted strategy of the GRP. The Philippines, through its IP

off ice, has been act ive part icipants in the internat ional effort to improve the IP

system and to make it adapt to the challenges of the t imes. In ASEAN and APEC, the

Philippines has been support ive of init iat ives of other countries, including the United

States, to promote best sharing pract ices, model laws, and other projects that aim to

improve internat ional standards for IPR.

Philippine leadership of the AWGIPC is part icularly signif icant now that US

President Barack Obama has declared that ASEAN is to become a “primary partner” of

the United States in the region and that the Philippines was selected as ASEAN’s

coordinator with the US to develop a f ive year work plan of cooperat ion between the

two strategic partners.

To conclude, the Philippines, out of its own nat ional interest, has been

diligently developing its IP system so that its people can benef it from it in the short

and long term. Domest ic stakeholder support is the key to evolving the IP system into

a tool that promotes innovat ion. With such support, all IP owners will benef it from IP

in all its stages – creat ion, protect ion and commercializat ion.

The Philippine IPR strategy is no different from other enlightened approaches

many other countries have taken, or are taking, with the resources it has available in

condit ions that exist in many low-middle income developing countries. The GRP is

realist ic enough to understand that its IP regime is evolving, and it is important not to

lose sight of the long term mission. But, one thing is clear, the Philippine IP system

has evolved remarkably in the past few years that the momentum of progress will

inevitably cont inue in the years to come. Needless to say, recognit ion and support

from all IP stakeholders in the country and elsewhere will redound to the benef it of all

part ies whose interests are served by the Philippine IP system.

43

Annex “A” PNP-IPU Enforcement Performance

MONTH

NO. OF SEARCH

WARRANTS SERVED

QUANTITY

ESTIMATED

VALUE (Php)

Pieces Boxes/ Sacks

January 12 11,041 - 12,600,000.00

February 9 6,837 - 4,306,546.00

March 29 4,513 - 19,700,000.00

April 56 3,500 - 377,986,405.00

May 5 9,459 - 1,722,356,881.00

June 13 21,786 50 70,358,995.00

July 13 15,922 - 2,680,030.00

August 7 358 - 2,251,000.00

September 20 39,525 - 201,014,040.00

October 6 106,000 - 3,710,000.00

TOTAL 170 218,940 50 2,416,964,167.00

44

Annex “B”

IPRD-NBI Enforcement Performance

MONTH

NO. OF SEARCH

WARRANTS SERVED

QUANTITY ESTIMATED VALUE (Php)

Pieces Boxes/ Sacks

January 23 180 - 85,000,000.00

February 22 216,676 - 61,600,000.00

March 13 6,040,303 - 27,710,755.00

April 18 37,421 - 23,690,000.00

May 14 836 - 4,305,000.00

June

57 69,930 - 45,051,375.00

July

14 54,553 8 108,418,470.00

August 51 41,351 - 43,788,000.00

September 2 177 - 6,802,000.00

October 10 566,301 - 3,700,000.00

TOTAL

224

7,027,728 8 439,784,280.00

45

Annex “C”

OMB Enforcement Performance

MONTH

NO. OF OPERATIONS ESTIMATED SEIZED OPTICAL DISCS ESTIMATED

VALUE (Php)

Inspection Search

Warrant

Plant Audi

t Inspection

Search Warrant

Total

January 85 - - 108,400 - 108,400 41,107,500.00

February 183 - 9 422,596 - 422,596 154,972,600.00

March 179 - 2 505,200 - 505,200 316,820,000.00

April 150 - 1 338,806 - 338,806 178,716,275.00

May 126 - - 889,700 - 889,700 94,329,500.00

June 95 11 - 551,750 - 551,750 165,801,000.00

46

July

68 - - 186,400 - 186,400 55,946,300.00

August

43 - - 174,800 - 174,800 35,620,000.00

September

70 - - 140,000 - 140,000 42,002,500.00

October

30 - - 96,000 - 96,000 28,800,000.00

TOTAL

1,029 11 12 3,542,652 - 3,542,652 1,114,115,675.00

Annex “D”

IPU-BOC Enforcement Performance

MONTH

NO. OF OPERATIONS

QUANTITY ESTIMATED

VALUE (Php)

Warrant of Seizure and Detention

Container Pieces Sacks/Boxes

47

January - - 105,114 586 82,673,140.00

February - - 145,488 - 3,999,996.00

March -

- 81,037 237 144,912,460.00

April - - 28,195 - 7,798,070.00

May - - 43,440 - 15,211,000.00

June -

- 934 - 5,258,100.00

July -

- 82,643 - 385,338,770.00

August -

- 7,810 - 2,733,500.00

September -

- 8 - 300,000,000.00

October -

- 1,380 - 483,000.00

TOTAL -

-

496,041 823 948,408,036.00