THE recent evaluation of the US Trade Representative (USTR) on the country’s intellectual property (IP) protection did not sit well with the IP Office of the Philippines (IPOPHL), which noted that the agency has been addressing related concerns through the years.
Meanwhile, the IPOPHL welcomed the USTR’s keeping the Philippines out of the Special 301 Watchlist for eight years and clearing of unlicensed software use allegation on the part of the government.
The IP Rights Enforcement Office (IEO) of IPOPHL said that the IP concerns raised in the USTR’s 2021 National Trade Estimate Report on Foreign Trade Barriers are not new and the Philippines has worked on them already.
“We disagree with the evaluation. These are not new issues that have been raised against the Philippines and this is despite the fact that the Philippines has already previously responded to, and addressed, the issues,” IEO told the BusinessMirror.
With this, IPOPHL IEO believes that said IP issues have not prevented foreign firms from investing in the country.
The agency added that the National Committee on Intellectual Property Rights (NCIPR) has introduced initiatives to strengthen enforcement efforts and to address the issues; and the latter “has achieved great strides” in resolving such concerns.
Piracy, fake goods
According to the USTR report, US right holders have concerns with the surging online piracy and counterfeit drugs and apparel, even citing the inclusion of the Greenhills Shopping Center, San Juan, Metro Manila in the Notorious Markets List.
IPOPHL, recognizing that online piracy is a global concern, noted that it has been coming up with programs with whole-of-government approach to solve the issue.
“Through the initiative of IPOPHL, Congress is now discussing the proposed amendment to the IP Code which will give impetus to enforcement power of IPOPHL to address online piracy, among others,” IEO said. “Parallel to this is the Internet Transactions Bill pending also in Congress which will address issues on E-Commerce including the proliferation of counterfeit and pirated goods online.”
IPOPHL said it also revised the Rules on Administrative Enforcement that governs the jurisdiction and process of the IEO.
Most recently, IPOPHL and the National Telecommunications Commission announced their partnership with several internet service providers to streamline mechanisms in blocking pirated websites.
This, after the IP office teamed up with the Asia Video Industry Association to curb piracy in the creative sector as well.
IPOPHL noted that the Food and Drug Administration through its Regulatory Enforcement Unit (REU) has been cracking down on counterfeit pharmaceutical products. The REU reported to NCIPR that it seized fake pharmaceutical products amounting to P5.48 million and P2.84 million in 2018 and 2019, respectively, during enforcement operations. During the seizure operations, REU said no counterfeit drug manufacturing activities were observed, IPOPHL noted.
“Regarding counterfeit apparels, the same efforts as that of online piracy are being undertaken by the NCIPR,” IPOPHL said. “Ironically, while the USTR reports that there are concerns regarding counterfeit apparels, the NBI’s [National Bureau of Investigation] efforts have been recognized by no less than the American Apparel and Footwear Association and the International Anti-Counterfeiting Coalition.”
IPOPHL said that NBI confiscated fake apparel amounting to around P12.04 billion in 2019 and P8.47 billion last year.
As for the Greenhills Shipping Center, the IP agency said that NCIPR continues to engage with its administration, the San Juan local government and others in addressing the selling of pirated goods. IPOPHL also created a technical working group to discuss the issues and to propose solutions.
Patent law, enforcement
USTR also flagged the “weak provisions in patent law” affecting the issuance of patents on certain chemical forms and the “ineffective” enforcement of IP due to lack of capacity, among others.
IPOPHL said that the concerns on said patent law were raised when the Cheaper Medicines Act was enacted in 2008. But, the agency said, it has addressed this by amending the Examination Guidelines relating to Pharmaceutical Invention involving Known Substances to provide administrative interpretation of Republic Act 9502 which is “The Universally Accessible Cheaper Medicines Act of 2008.”
Since the removal of the Philippines from the USTR 301 Special Watch List in 2014, IPOPHL said the issue on patent law for issuance of certain chemical forms has not been raised until the 2021 report on trade barriers. “However, we believe that this is an issue that has been settled already,” IEO stressed.
Meanwhile, the IPOPHL said that NCIPR’s hauling of infringing products worth billions from seizure operations proves that the country’s IP enforcement is effective.
“In terms of capacity building, the members of the NCIPR regularly undertake capacity building activities with international experts to update their skills in investigation and case build-up, including learning new trends and modus operandi of infringers,” IEO added.
Off the list
In a statement over the weekend, IPOPHL Director General Rowel S. Barba said that the exclusion of the Philippines from the Special 301 report bodes well for the business sector. This helps promote the country as a “vibrant investment place for US and other foreign businesses,” he explained.
“Most especially, we are pleased with the removal of the erroneous finding that our own government uses unlicensed software, a claim which we have repeatedly disproved,” Barba added. IEO vowed to continue addressing all the threats on IP holders while educating Filipinos on the matter to encourage more creation and innovation.
“As technology evolves, the modus of counterfeiters and pirates also evolve and we have to keep pace with them so as to address the problem and this is what we are doing,” IPOPHL concluded.