The ip coalition report I

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The IPC Philippine Report Series

November 2004

A Report Written Under a Study Grant from Microsoft Philippines to

Upecon Foundation

In cooperation with the Intellectual Property Coalition of the Philippines


The intellectual property rights (IPR) concerns have been gaining popularity internationally, but intensive studies on IPR issues have not yet been fully developed in the Philippines. In response to this need for information, the Intellectual Property Coalition (IPC), in partnership with the UPECON Foundation, conducted this analysis on the protection of intellectual property rights in the country. The IPC is the leading federation of IP Rights Stakeholders and Organizations in the Philippines, and is composed of the following organizations, namely: COMPACT; Filipino Society of Composers, Authors, and Publishers (FILSCAP); Philippine Association of the Recording Industry Inc. (PARI); AVIDPHIL; Business Software Alliance; Asosasyon ng Musikong Pilipino Foundation; Philippine Entertainment Industry Foundation, Inc.; Brand Protection Association; KATHA; Movie Producers and Directors Association of the Philippines (MPDAP), Philippine Software Industry Association, Inc. (PSIA), Quezon City Chamber of Commerce and Industry, Inc., American Chamber of Commerce and Industry, and Microsoft, Inc.

The IPC Report focused on the issue of IPR protection in the country, specifically in the area of copyright. First, brief profiles of the copyright-based industries in the Philippines, namely the software, music/recording and video industries, were presented using statistical data from government and private agencies. Included in this section are the analyses of the effects of piracy on the economic performances of the identified industries.

The second part of the research, which is considered as the heart of the study, examined the state of IPR protection. An “Intellectual Property Rights Protection Model” was devised to serve as a framework for the analysis. The model identified three cornerstones of IPR protection, namely: 1) Policy and Regulation, 2) Enforcement and Adjudication, and 3) Public Information and Education Campaign. Under the Policy and Regulation section, the different IPR laws and regulations in the Philippines were determined, including the most recent ones that have been passed in the Philippine legislation. This section encompasses laws concerning copyright and patents, and other legislative measures regarding border controls and electronic commerce. Meanwhile, the different IPR enforcement activities, by both the government and private sectors, were presented under the section Enforcement and Adjudication. Here, the relationships between the piracy rates (software, music and video piracy rates) and the enforcement activities were analyzed. Lastly, the section on Public Information and Campaign identifies the various efforts of the government, IPR stakeholders, and private organizations, in educating and informing the public on IPR issues and concerns.

The paper also presented “Insights on the Intellectual Property Rights Protection” discussing the interrelationships between and among the legal, social, and economic aspects of the endeavor. The legal side involves the laws governing the IPR and the judicial processes involved in trying IPR cases. These are the de jure institutional arrangements wherein the government is the recognized main authority on the subject. The social side of IPR deals with the social attitudes and customs towards the legitimacy of the rights on intellectual property. In this section, it was stressed that in intellectual property rights, or any property rights issue for that matter, one vital concern is the acceptance of society that intellectual property is an asset in which rights can be allocated to. That it is an income stream that needs management, hence, the provision of the rights. It is significant, therefore, that this knowledge or thinking be ingrained in the value system or norms of the society. On the economics side, the demand and supply of intellectual property assets were discussed.

In general, the study determined the importance of intellectual property rights protection in the Philippines; and how the government, as well as the private sector, responded to the need for it.

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