04 May 2009, Makati. It’s business as usual for the Intellectual Property Office of the Philippines (IP Philippines) despite the impending Out of Cycle Review by the Office of the United States Trade Representative (USTR). The Philippines has retained its status in the Ordinary Watch List of the 2009 Special 301 Report of the USTR.

According to Atty. Adrian S. Cristobal Jr, Director General of IP Philippines, “The decision of the USTR comes as no surprise. Progress in promoting respect for intellectual property rights in the country has been substantial, but pressure from powerful lobby groups in Washington, with unreasonable demands, kept us on the Watch List.”

The 2009 Special 301 Report counts the Philippines among 33 countries in the Watch List, including Belarus, Bolivia, Brazil, Brunei, Colombia, Costa Rica, Czech Republic, Dominican Republic, Ecuador, Egypt, Finland, Greece, Guatemala, Hungary, Italy, Jamaica, Kuwait, Lebanon, Malaysia, Mexico, Norway, Peru, Poland, Romania, Saudi Arabia, Spain, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan, and Vietnam.  The Philippines has been in the Ordinary Watch List since 2006. This year’s report on the Philippines cites amendments to the patent revisions in the Philippines’ IP Law as they apply to pharmaceuticals as “troubling.” Cristobal reiterates that all provisions to the Cheaper Medicines Law have been deliberated to primarily benefit the Filipinos more than any other foreign interest.

As for the challenges in enforcement, Cristobal maintains that action plans have been drawn since last year, and that various steps are continuously undertaken by IP Philippines, in
partnership with various government and private sector organizations, to address the many components that constitute a strong and balanced Philippine IP system.

 “What is important is that the government continues its strategic thrust of promoting creativity and innovation in the country through the IP system,” adds Cristobal.

“National IP programs,” he says, “have raised awareness on the importance of the IP system among inventors and scientists, artists and the creative sector, universities and research and development institutions, and entrepreneurs. The increase in patent filings in the IP office, the increase in universities with IP policies, and the growth of copyright licensing organizations for artists are proof of gains in using IP for national development.” 

These factors, Cristobal emphasizes, are important in nurturing a stronger and more balanced IP system, particularly for utilizing IP for national development. However, these are not considered by the USTR.

Cristobal lauds the members of the National Committee on Intellectual Property Rights (NCIPR), the government’s anti-piracy workforce, for their sustained IP rights enforcement activities. This year, from January to April, the various enforcement activities of NCIPR member agencies like the Philippine National Police (PNP), National Bureau of Investigation (NBI), Optical Media Board (OMB) and Bureau of Customs (BOC) have seized approximately one billion pesos worth of counterfeit items.  Data shows that from 2005 to 2008, the total estimated value of seized counterfeit items amount to Php9,019,407,122.59.  More government agencies are also involved in the campaign against piracy. The Presidential Anti-Smuggling Group and the Office of the Special Envoy for Transnational Crimes joined the Departments of Justice (DOJ) and the Interior and Local Government (DILG), the National Telecommunications Commission (NTC), the National Book Development Board (NBDB), the Bureau of Food and Drug (BFAD), the PNP, NBI, OMB and the BOC in implementing the country’s anti-piracy program.

However, while enforcement is an important aspect of strengthening the IPR regime, Cristobal stresses that it is only one aspect of the government’s campaign for a creative Philippines that uses intellectual property as a strategic tool for national development.

The Special 301 is an annual review undertaken by the USTR which identifies countries that deny adequate and effective intellectual property (IP) protection. Countries falling under the Priority Watch List are those that do not provide adequate IPR enforcement, while those in the Watch List, where the Philippines currently falls under, require bilateral attention to address IPR concerns. The Philippines participates in the US General System of Preferences (GSP) program, which offers duty-free imports of certain products into the U.S. from developing countries provided the country of origin provides “adequate and effective protection of intellectual property rights”. In 2008, more than $913 million worth of goods, or almost 10.5% of all goods imported in the United States from the Philippines, enjoyed duty-free treatment under the GSP.

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