Trudge along the corridors of Quiapo, Manila and you will notice that among the most visited stalls are those selling pirated CDs. It is quite sad that infringement of intellectual property seems to have been the rule in this country rather than the exception. It is sadder still that our country, renowned worldwide for the exceptional ingenuity, creativity and innovation of Filipinos, is becoming a dumping ground for pirated articles of all kinds. Everyday we see counterfeit DVDs, VCDs and CDs of movies, movies, computer software, etc. being sold like hot cakes. Not only are they exceptionally cheap, the video and sound quality of some of the copies are impressively often far better than the original.
Some say that piracy, as we know it today, is the inevitable product of advanced developments in information and communication technology within the past two decades. In one study, the practice of piracy has also been described as having the most efficient distribution system.
The distribution system of the people behind this industry is really something to marvel at. You can find movies, shown yesterday in Europe and the US of A, magically find their way immediately in our shores the next day. Our country’s logistics and supply chain industry can learn from whatever technique is being applied by the masterminds of this very organized (syndicate) industry.
What is most appalling, and funny, in all these is that while the selling of pirated products are happening right under their noses, many members of the police do not seem to mind. Selling of pirated items is happening at point blank and no one seems to notice or care even. We can see these stalls everywhere around Metro Manila, in malls, street corners, tiangges, sidewalks, etc.
This is one humongous stumbling block in any action plan to solve the problem of piracy. Catching and imprisoning those selling the prohibited articles would be just like nibbling at the tip of the iceberg. This problem, as most of us now know, is tightly knit with the problem of smuggling, other curse of the continuously increasing borderless world.
According to the Business Software Alliance (BSA), software piracy in the Asia-Pacific region cost manufacturers about $8 billion in 2004. Worldwide, losses due to software piracy were estimated at more than $32 million in that year.
Not only is the multi-media industry being severely affected, the overall competitiveness of the country is also taking a severe beating.
According to Intellectual Property Philippines (IP Phil), there is a need to increase local patent applications in order to drastically improve our image abroad as a country competent in technological innovation. We also need to increase patent registrants to increase the chance of our country being removed from the US watch list of IPR violators.
Piracy has worsened for the past years, which should have alerted us to take action to curb its slithering tail. In fact, according to International Intellectual Property Alliance, the growing piracy business has made the Philippines one of thirty-one countries that supposedly have a larger market for illegal software than for commercial software.
Solving this problem once and for all entails that we have enough valuable information on the concept of IP and why its development and use in our business can have a positive, long-term impact on our daily lives.
What is Intellectual Property?
It is amusing to know that those who are most knowledgeable on IP and those who mostly benefit from IP are the violators of IP rights.
The important thing to focus on, therefore, is empowering ourselves with the necessary tools to make all available knowledge, laws, and policies on IP work for us, the intended beneficiary.
It has always been government policy to promote and protect intellectual property. This policy was embedded both in the 1973 Constitution, which provides that “the exclusive right to inventions, writings and artistic creations shall be secured to inventors, authors, and artists for a limited period” and in the 1987 Constitution, which mandates that, the State shall protect intellectual property.
Moreover, the Philippines became a member of the World Intellectual Property Organization [WIPO] in 1980. The WIPO is a specialized agency of the United Nations, which is dedicated to developing a balanced and accessible international IP system, which recognizes and rewards creativity, stimulates innovation and contributes to economic development while safeguarding the public interest.
Our country also acceded to a number of significant multilateral international agreements and treaties for the protection and promotion of intellectual property rights, which include the following:
Convention Establishing the World Intellectual Property Organization [since 1980]
Paris Convention for the Protection of Industrial Property [since 1965]
Budapest Treaty on the International Recognition of the Deposit of Microorganisms for Purposes of Patent Procedure [since 1981]
Berne Convention for the Protection of Literary and Artistic Works [since 1951]
International Convention for the Protection of Performers, Producers of Phonographs and Broadcasting Organizations [since 1984] Agreement on Trade-Related Aspects of Intellectual Property Rights [TRIPS Agreement (from Chan Robles Law Office Website)
Moreover, government, through IP Phils,. is now closely studying the effects of acceding to the Madrid Protocol. According to Mr. Alan Datri, Senior Counsellor of the Office of the Assistant Director General of WIPO, the Madrid Protocol will provide a centralized acquisition and maintenance of trademark rights around the world through the filing of a single international application for a single international registration with effect in one or more designated Contracting Parties. This would mean that Filipino exporters would no longer need to register their trademarks separately in each country where they export their products. One international registration would have the effect of registration filed in all countries that acceded to the Madrid Protocol.
The presence of these laws should have discouraged all who intended to violate our IP rights. But why has it persisted?
WHY PIRACY PERSISTS
We all know that violation of IP is happening right under our noses, and we all know how to solve it, or at least everyone has a thing or two to discuss on how to end piracy, but why has this problem continued to hound us and our country’s drive to competitiveness?
Answering this question is like trying to solve smuggling or drug addiction. We all know the answers and solutions, but still some people come up with their own reasons why piracy persists.
One answer is that government lacks resources, and even the political will - to effectively eradicate or reduce piracy. Indeed, IP Phils., the primary body tasked with protecting IP, needs all the help in sustaining its drive to develop IP in the country.
Another is that we should learn to adapt a culture of distaste against everything pirated. Despite the fact that pirated CDs are cheaper, the bigger picture should discourage us in abhorring piracy altogether. It is a fact that this worldwide phenomenon is contributing to terrible loss of jobs for those working for legitimate music, movie, and software companies, and this causes industries related to them to slowly die.
We should also support government in adapting the international standards and best practices in customs procedures. Smuggling has been uncurbed, half-willed implementation of laws and policies on intellectual property, has allowed the proliferation of pirated articles and paraphernalia.
Moreover, a reason why there seem to be less support from the people themselves is that many are getting a good living buying and selling pirated media. What is appalling is that the distributors of pirated materials not only avoid the ambit of the BIR for the income they generate, they do not pay royalties to the creators of the said materials.
What PCCI is Doing
The PCCI has spearheaded the private sector drive to help in government’s information dissemination drive in promoting intellectual property development.
The Committee on Intellectual Property, headed by its Chairperson, Mr. Jesus Varela, was created to help instill awareness on the important role of IP in business development, trade and the flow of investment in the country. Mr. Varela said that the Committee seeks to promote more cooperation in the field of IP between government institutions and members of the private sector. The Committee, he said, also recognizes that IP advocacy and protection is a key factor for economic growth and advancement, especially of SMEs.
The main objective of the IP Committee is, first and foremost, to help members of the business sector appreciate and understand better the concept of intellectual property and the ways by which IP can be used as a valuable asset in business development. Moreover, the Committee aims to promote the protection of intellectual property in the country through cooperation with government, academe, and other important sectors of society.
The Committee hopes that, through the promotion of an IP culture, the business community will produce more inventors and innovators who will be encouraged to obtain, use and license IP rights and assets.
The IP Committee is now closely cooperating with IP Phils.’ information-dissemination drive to increase awareness of the importance of IP among stakeholders in the country.
It is worthy to note that the IP Philippines has created the Intellectual Property Research and Training Institute (IPRTI). The Institute will serve as the vehicle by which IP Philippines would respond to the country’s need for a higher level of IP awareness and expertise across sectors. With IPRTI in place, it is hoped that the IP system can be further strengthened through capability building in IP expertise and in advanced IP education and research.
Indeed, we should be relentless in enhancing our people’s innate talent for ingenuity, which is what Filipinos are very much known for. But each of us must do our part to advance IP awareness, which is the first step towards a very long journey of making IP protection a significant part of the Filipino culture.
PCCI is aware that this partnership with IP Phils. will go a long way in helping promote IP, not only among SMEs but, with the Filipino people, who are the real beneficiaries of the success of the adoption of a successful IP campaign.
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