The Philippines has remained out of the United States Trade Representative’s (USTR) Special 301 Watch List for the 13th consecutive year, reaffirming the country’s sustained progress in strengthening intellectual property (IP) protection and enforcement.

In its latest report, the USTR recognized several Philippine initiatives as best practices.

Among these is the country’s continued investment in specialized IP enforcement units and courts, which have proven to be effective catalysts in addressing counterfeiting and piracy.

The USTR also highlighted the establishment of the Department of Trade and Industry’s e-Commerce Bureau in March 2024, which enhances oversight of online transactions, including efforts to curb counterfeit goods. The bureau is set to finalize a memorandum of understanding with the Intellectual Property Office of the Philippines (IPOPHL) in 2026 to strengthen inter-agency collaboration in the digital space.

The report likewise cited IPOPHL’s innovative awareness campaigns, particularly the rollout of the “Pirated Inferno” comic, promoted through engagements with local governments, higher education institutions and civil society organizations. IPOPHL, in partnership with the National Book Development Board, is working to translate the comic to other Philippine languages for wider reach.

In addition, IPOPHL’s National Judicial Colloquium on Intellectual Property Adjudication, which brought together judges from Special Commercial Courts, was recognized for strengthening judicial capacity and improving the handling of IP cases.

IPOPHL Director General Teodoro C. Pascua welcomed the continued recognition, emphasizing the critical role of inter-agency collaboration in sustaining the country’s gains.

“Our consistent standing reflects the strength of our whole-of-government approach, with the National Committee on Intellectual Property Rights (NCIPR) at its core. Through the NCIPR, enforcement agencies, regulators and partners are able to act in a more coordinated and strategic manner against counterfeiting and piracy,” said Pascua, also Vice-Chair of the NCIPR.

The NCIPR is an interagency body composed of 15 government offices involved in IP protection and enforcement. It coordinates nationwide efforts to combat counterfeiting and piracy, conducts joint enforcement operations and advances policy and capacity-building initiatives.

“This is a testament to the hard and smart work, dedication and commitment of the NCIPR in upholding IP rights protection and enforcement, and in safeguarding the welfare of Filipinos,” Deputy Director General Nathaniel S. Arevalo said. “Having planted the seeds of whole-of-society approach, we will continue to build on these gains by strengthening enforcement coordination, enhancing digital monitoring capabilities and expanding our public awareness initiatives. We are positive that we are capable to meet the demands of an increasingly evolving environment in view of the advances in technology and commercial activities in the digital environment.”

Addressing challenges

Meanwhile, IPOPHL continues to challenge the USTR’s characterization of the Philippines as a source of counterfeit medicines. It clarifies that the 2020 study from which the label derives identifies the country as a “provenance economy,” which does not conclusively determine whether it is a source or transit point.

The IPOPHL and the NCIPR stressed that accurate and adequate information including identifying origins is key to addressing enforcement gaps.

The USTR also flagged slow opposition and cancellation proceedings. IPOPHL cited ongoing efforts to reduce backlogs and improve efficiency, including promoting alternative dispute resolution which offer faster and more cost-effective options for parties.

It added that such proceedings are quasi-judicial and may be affected by factors beyond its control, such as repeated extension requests and non-appearance of parties or counsel.

“We take these observations as opportunities to further strengthen our systems. Our reforms are ongoing and include streamlining procedures, enhancing digital systems and strengthening coordination,” Bureau of Legal Affairs Director and IP Rights Enforcement Office Supervising Director Christine Pangilinan-Canlapan said.

“Our goal is not only to maintain our standing, but to ensure that our IP environment truly supports innovation, investment and consumer protection,” she added.

The USTR Special 301 Report is an annual review of how US trading partners protect and enforce intellectual property rights. Countries may be placed on the Watch List or Priority Watch List based on identified gaps, while those demonstrating sustained improvements are recognized for good practices and remain off the list.