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Posted on Tuesday, September 17, 2002

  

Gov’t launches offensive 
to neutralize software pirates

By Leah B. del Castillo , Business Desk 
With additional research/reporting by Meryl S. Marcon

(Software pirates have almost wreaked havoc on the software and entertainment industry. Illegally copied CDs, VCDs and DVDs have flourished so long authorities are facing an uphill battle rooting them out. This final installment notes the government strategy to strike back at the pirates.)

Since former Cavite Gov. Ramon “Bong” Revilla Jr. took over the Videogram Regulatory Board (VRB) as chairman in July, the agency’s focus has been to stop illegal copiers of video materials and the confiscation of copying machines.

The raids conducted by VRB teams have exposed one glaring fact: most of the pirated software are being turned out by illegal aliens.

What is more disturbing, according to Eduardo D. Sazon, vice chairman of the IP Coalition, a loose group of patent, trademark and copyright stakeholders, most of these foreign nationals “have the capital to establish connections, within and without the government.”

From January to the second week of August this year, VRB made 828 inspections, resulting in 293,835 discs confiscated. The total worth of the confiscated goods could range anywhere from P14 million to P35 million.

In addition, for the same period, VRB conducted 16 search warrant operations, resulting in the seizure of 93,503 VCDs and DVDs, and several optical disc copying and recording equipment.

Rafael Ragos, head of the National Bureau of Investigation’s Intellectual Property Rights department, said most of the counterfeit business software comes from abroad, particularly China.

Sazon believes that the only way to save the entertainment industry from piracy is through strict law enforcement.

The Intellectual Property Code of the Philippines (Republic Act No. 8293) protects original works’ copyright  — the exclusive right to publish works — and levies penalties for copyright violations.

However, Sazon notes that aside from the need to educate consumers against patronizing pirated material, there is the additional problem of finding “prosecutors who are strict” in enforcing the IPR (intellectual property rights) law.

Ragos agrees. In a telephone interview with THE TIMES, he said that even as the NBI is able to confiscate pirate goods, there is a difficulty in “convincing the courts that these are fakes.”

While the NBI itself has no backlog in its investigating tasks, Ragos said some software companies, including the multinationals, opt to settle with the offenders, not wanting to get involved in the long judicial process.

One reason intellectual piracy cases drag on in court may be that the 27 designated IPR courts do not only handle cases on IPR but also other cases considered heinous in nature.

In a paper, the Inter-Agency Committee on Intellectual Property Rights notes that “IPR violations do not arouse strong feelings, on the part of the public and judges, or revulsion or hatred or antipathy towards the accused. More so, if the complainant is a multinational company and the accused is a small shop owner or retailer.”

Jennifer Abaca-Lai, Microsoft Philippines’ director for business development, in an e-mail interview confirms that “maintaining these cases entails a lot of resources.”

Abaca-Lai said the BSA has cases against violators that are still pending in court. “Some of these cases are effects of raids conducted from as far back as1995,” she added. 

Microsoft, in addition to a public apology, requires the violator to make a “hardware donation to a community or charitable institution” Micro­soft has chosen, she said.

Abaca-Lai stressed that individuals and companies should understand that using licensed software is in fact more cost-effective than settling the matter in court.

“Companies who use illegal software on the other hand put themselves at risk. For one, they are ineligible for upgrades, warranties or technical support. They are also unprotected against malicious viruses. More importantly, they put their company’s reputation at risk,” she said.

“More often than not, negotiating a settlement for copyright infringement is more expensive than the cost of fully licensing software in the first place.”

The country’s lawmakers seem eager enough to give authorities more teeth in fighting piracy.

The House of Repre­sentati­ves, through House Bill No. 3825 introduced by Rep. Imee Marcos and Harry Angping, proposes to expand and strengthen the powers of the Intellectual Property Office (IPO) as the lead agency in the fight against optical disc piracy.

The bill proposes that the IPO be given the “authority to regulate and license the manufacture, mastering and reproduction of optical media and the importation, sale and acquisition of optical media replicating equipment and other raw materials.”

In another House measure, Bill No. 3182, Angping proposes that certain amendments be made to the RA 8293, including the “integration of compre­hensive, swift, efficient and adequate strategies” to combat Internet piracy. At the same time, the bill seeks to address the rights of “performers, phonogram producers and broadcasters in the same breadth as those accorded authors of artistic and literary works.”

However, NBI’s Ragos believes that “no amount of law enforcement would stop piracy” as offenders would merely settle with aggrieved parties and then resume business. Instead, he calls for re-education.

“Filipinos should become more aware that piracy is practically stealing,” he said. “It is immoral.”  
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Francis Andaya, Judee Perculeza, Marizhen Doctora
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