Updating IP Code for stronger protection of IP assets emphasized at 2nd Creative Industry Summit

March 10, 2023

The Intellectual Property Office of the Philippines (IPOPHL) commended President Ferdinand R. Marcos, Jr. and various partners in government for putting in motion its lobby to amend the Intellectual Property (IP) Code of 1997, a legislation which is part of the priorities of the Philippine Development Plan 2023 – 2028 towards deep economic and social transformation.

“We laud President Marcos Jr. and the economic team for identifying the IP Code amendments as one of the priority legislations under the Philippine Development Plan 2023 – 2028, particularly to reinvigorate services and advance R&D, technology and innovation,” Barba said at the first day of the 2nd Creative Industries Summit on 07 March 2023 where he shared IPOPHL’s latest steps to help rights holders better protect their IP assets.

“Indeed, we truly feel that the 19th Congress is taking this call to heart as our honorable lawmakers in the House of Representatives, particularly the Committee on Trade & Industry Chaired by Cong.  Marvey A. Mariño,  recently initiated the consolidation of all bills related to the IP Code amendments and approved House Bill (HB) 7028 sponsored by Cong.  Joey S. Salceda, giving IPOPHL the power to issue site blocking orders to be implemented by internet service providers,” the IPOPHL chief added. 

The four separate bills filed to amend the IP Code and now being consolidated are HB 799 by Cong. Salceda, HB 888 by Cong. Michael L. Romero, HB 2672 by Cong. Christopher “Toff” V.P. De Venecia, HB 3838 by Cong. Lex Anthony Cris A. Colada.

Some of the amendments for copyright include having clear-cut rules on orphan works and recognizing extended collective licensing, through which collective management organizations can extend the license they issue to non-members. 

Meanwhile, some amendments on enforcement in relation to copyright include granting IPOPHL the power to order the blocking of websites with infringing content, as well as institutionalizing its IP Rights Enforcement Office which is on top of piracy and counterfeiting complaints lodged at the office. 

De Venecia, in his opening remarks at the Creative Industries Summit, cited the IP Code amendments as one of the crucial legislation to help Filipino creatives capitalize and optimize their assets. 

“If passed this will  enable more protection and enforcement of our IP rights which will encourage us to create more original content with less fear of infringement or piracy,” said the representative of Pangasinan’s fourth district. 

IPOPHL attended the summit as an ex-officio member of the 19-member Philippine Creative Industries Development Council. The Council, mandated to create a long-term plan for the promotion and development of creative industries, was created by Republic Act 11904 or the Philippine Creative Industries Act of 2022 or PCIDA. PCIDA aims to lay the regulatory foundation and policies that foster a dynamic and collaborative environment for empowering Philippine creative talent. 

Department of Trade and Industry (DTI) Secretary Alfredo E. Pascual, also chair of the PCIDA, said the creative industry is a “priority industry” as it is “central to the DTI’s industrialization and industrial transformation strategy which are driven by science and innovation.”

In her speech, DTI Undersecretary of the Competitiveness and Innovation Group Rafaelita M. Aldaba highlighted this nexus between creativity and innovation as she cited technologies revolutionizing how creators connect with a wider audience and deliver through new forms of creativity. 

Among them is the metaverse, artificial intelligence and the blockchain, the latter of which is a decentralized and secured digital ledger which she said can create “new opportunities for copyright protection, digital asset  management and creative financing, unlocking new sources of revenue for artists and creators.”

Barba also echoed the exciting possibilities of the technological revolution but also recognized the new and more complex challenges of creators, particularly in protecting their IP rights online.

“They face a digital world where content can be copied and shared in an instant, where violators can hide within the dark web, and where content and commercial posts that have been taken down can be easily re-uploaded using a different identity,” 

To provide relief to artists, Barba said IPOPHL hopes to implement a rolling site blocking regime soon after holding on 08 March 2023 a virtual public consultation of the draft supplemental rules on site blocking. 

“A rolling site blocking regime will enable IPOPHL to disrupt access to pirating sites on a faster and continuous process. Such is already in place in various ASEAN countries and we hope to replicate their successes for the relief of Philippine creators,” Barba said. 

Like IPOPHL, Pascual said the DTI commits to address hurdles to the creative industries’ full growth, among which is the deficiency in statistical data on the industry’s actual contribution to employment, trade and economy.

“We will continue working with the Philippine Statistics Authority (PSA) and IPOPHL to establish a well defined and reliable statistical system through the creative industry satellite account,” Pascual noted. 

A 2014 study by the World IP Organization showed that the Philippine copyright-based industries contributed a little over 7% to the country’s gross domestic product in 2010. 

Copyright-based exports—at 3% of total exports—also exceeded copyright-based imports which neared 1%. Workers in copyright-based industries were over 14% of all locally employed in 2010, the highest employment level among all WIPO member states covered in the study.

With the efforts of IPOPHL, DTI and PSA, it is hoped that an updated and more regular reporting mechanism can be established to help government track industry growth. 

Under the PCIDA, creative industries is defined as trade that produce cultural, artistic, and innovative goods and services originating in human creativity, skill and talent and having a potential to create wealth and livelihood through the generation and utilization of IP. 

President Marcos, in his video message, assured he recognizes the creative industry “not only as an  active contributor to economic growth but as a driving force that gives soul to the Philippine identity.”

“With [the 2nd Creative Industries Summit] comes the unified effort to craft initiatives and programs essential to the growth of the creative sector and generate countless opportunities for you, our creative stakeholders,” the  president added. # # # (Janina Lim, Information Officer III)