FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 962 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
The Philippines needless to say has enough laws to protect intellectual property 
owners. The new Intellectual Property Code of the Philippines signed into law in 1999 
expressly covered entirely everything to prevent the proliferation of infringement of 
copyright, trademark and patent. Since then, vigorous actions by the joint operatives of 
the government had been executed to go after violators. In fact, during the previous 
Congress RA 9239 otherwise known as the "Optical Media Act of 2003" has been 
enacted to eradicate manufacturers of pirated optical disk. 
In spite of all these, hundred thousands of bootleg optical disks most speCially 
business software continues to penetrate and escalate practically in every retail shops 
of leading malls including street stalls of the metropolis. Admittedly, we are losing this 
battle against the pirates. They were able to turn their illegal activities evolved into a 
multi-million industry. 
The very slow disposition of cases against violators is another hindrance to a 
successful campaign to piracy. The Business Software Alliance (BSA) is in fact calling 
for the Philippine government to follow-up on pending copyright infringement cases on 
software piracy. There are over 20 cases filed by BSA against software violators in the 
Philippines involving illegal copying,' sale and distribution of unlicensed software from 
both local and foreign companies pending for years. 
We cannot afford to allow operations of copyright thieves to further proliferate 
and escalate into an unmanageable point. 
Because of the present state of piracy 
situation in the Philippines, 
our country has been placed alongside with 19 other 
nations in the priority watch list of the International Intellectual Property Alliance (IIPA) 
known as the "Special 301 Report" since 2001. This is not at all good for our economy; 
the county's export industry might lose its grounds from the US Generalized System of 
Preferences (GSP) Program, a program which allows the country's certain export 
products to be duty-free in the United States. An adequate and effective protection for 
Intellectual Property Rights of US products is a major consideration in the inclusion of 
our country in the GSP. Since we are among the leading export market of US 
entertainment and software products, piracy activity in our country has been crippling 
these industries. A study by International Data Corporation revealed that the industry 
losses approximately 3.9 billion pesos from local pirates, which is a clear indication of a 
weak enforcement of the law. 
In order to address this concern, this proposed legislation will put in place an 
enforcement unit under the DTI, whose functions will deal exclusively on regulating and 
protecting copyright of business software works. 
This bill is actually intended to 
. 
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supplement RA 9239 or the "Optical Media Act of 2003", which exclusive concern is to 
regulate activities pertaining to IP works stored in Optical Media. Business Software 
Alliance does not only go after optical media containing unlicensed works, but likewise 
those already installed and being used in business establishments. Hence, it is strongly 
believed by this representation that it would be for the best interest of business software 
copyright owners to treat their concerns separately as an effective tactical approach. 
Under this proposed measure, the function of the Optical Media Board (OMB) 
particularly pertaining to business software piracy, shall not be absorbed by the 
enforcement unit, but rather to help free the already over-loaded work entrusted to 
them. 
This bill at hand will likewise supplement and strengthen the enforcement of 
protection conferred by RA 8293 or the Intellectual Property Code of the Philippines to 
copyright holders of business software. The enforcement unit will go after thieves and 
unauthorized users of business software copyright protected works subject to the 
provisions of the bill. 
This same body will also be tasked to regulate business 
operations concerning business software copyright protected works, by way of licensing 
business entities intending to distribute, sell, import, export, or reproduce these products 
commercially. More importantly, in order to provide solution to the backlog of cases 
pending in the courts relating to copyright infringement of business software, an 
Intellectual Property courts shall be established in every RTC. 
Let us show to the world that our government is keen in totally eradicating 
software piracy in the Philippines in order to preserve the country's reputation from 
being branded as piracy haven of Asia. 
The immediate approval of this bill is earnestly sought. 
"LITO" M. LAPID 
Senator 
~ 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
'So No. 962 
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Introduced by Senator Manuel "Lito .. M. Lapid 
AN ACT 
STRENGTHENING 
THE 
ENFORCEMENT 
OF 
THE 
COPYRIGHT 
PROTECTION OF INTELLECTUAL PROPERTY RIGHT OWNERS OF 
COMPUTER 
PROGRAMS 
CREATING 
FOR 
THIS 
PURPOSE 
THE 
BUSINESS SOFTWARE COPYRIGHT PIRACY ENFORCEMENT UNIT, 
DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Short Title. - This Act shall be known as the "Anti-
, 
Business Software Copyright Protection Act of 2010." 
SEC. 2. 
Definition of Terms. -
For the purpose of this Act, the following 
shall mean: 
1 . 
Protected works of business software copyright owners - shall refer 
to protected works of business software copyright holders as provided for in Section 
172.1 sub-paragraph (n) Computer programs of RA 8293 or the Intellectual Property 
Code of the Philippines. 
, 
2. 
Violation of the copyright - shall refer to violation of rights bestowed to 
copyright owners under The Law on Copyright, part IV of RA 8293 otherwise known as 
Intellectual Property Code of the Philippines. 
3. 
Commercial Reproduction -
shall refer to the act of transferring, 
copying, duplicating or dubbing in a commercial scale protected works of business 
software copyright owners. 
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4. 
Department - shall refer to the Department of Trade and Industry. 
5. 
License - shalf refer to the permit issued by the BUSPU to alf business 
entities intending to retail, distribute, import, export and reproduce commercially 
protected works of business software copyright owners. 
SEC. 3. 
Declaration of Policy. - It is the policy of the State to promote and 
protect business software in the Philippines by providing a conducive trade environment 
to spur the industry's growth and development in the country by intensifying 
enforcement against its illegal use, marketing and replications. 
SEC. 4. 
Coverage. - Copyrightable works of business software copyright 
owners as defined in this act whose afforded protection is prescribed under Sec. 221 (e) 
and Sec. 221.2 of the Intellectual Property Code of the Philippines shall be covered by 
this Act. 
SEC. 5. 
Creation of Business Software Copyright Piracy Enforcement 
Unit. - To carry out the above policy, there is hereby created a body to be known as the 
Business Software Copyright Piracy Enforcement Unit, herein referred to as BUSPU. 
The BUSPU shall be placed under the Department of Trade and Industry. 
The BUSPU shall be headed by a Unit Director who shall be apPOinted by the 
Secretary of the? Department for a term of three (3) years, unless sooner removed by the 
Secretary, who shall have the rank on Director III. 
SEC. 6. 
Regional Offices of BUSPU. - The BUSPU shall establish offices 
in different regions in the country as may be determined by the Director, based on his 
assessment where there is a rampant operation of copyright violators. 
The BUSPU Regional Offices shall be headed by a Regional Director who shall 
serve for a term of three (3) years and shall hold its office within the Department's 
" 
Regional Offices building. 
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.' '. 
SEC. 7. 
Powers and Functions. - The BUSPU shall have the following 
powers and Functions; 
(1) 
To regulate, grant, supervise or cancel the issuance of license for the 
retail, distribution, import, export and commercial reproduction of protected works of 
business software copyright owners to include floppy disk, optical media disk, memory 
chips or any other data storage which may be devised in the future; 
(2) 
To inspect and examine all protected works of business software copyright 
owners, including floppy disk, hard disk drive, flash drive, optical media disk, memory 
chips or any other similar variations which may be devised in the future, with the end in 
view of confiscating the same in case of violation of the copyright of protected business 
software works subject to the provision of this act; 
(3) 
To cause for the closure of retails, distributors and users of protected 
works of business software copyright owners in case it is not licensed with the BUSPU 
or it has violated the conferred copyrights of the latter; 
(4) 
To cause for the prosecution of violators of the Intellectual Property Code 
of the Philippines subject to provisions covered by this Act. 
(5) 
To levy, assess and collect fees and charges for the issuance of licenses 
and other appropriate requirements to business entities, which the BUSPU 
is 
authorized to grant for the proper implementation of its duties. 
(6) 
To devise and implement programs to make effective the prevention of 
sale, distribution and use of unlicensed business softwares. 
(7) 
To exercise such other powers and functions as may be necessary or 
incidental to the attainment of the purposes of this Act. 
SEC. 8. 
Licensing. - No person, whether natural or juridical, may engage 
in the importation, exportation, commercial reproduction, retail, and distribution of 
protected works of business software copyright owners, without first acquiring a license 
from the BUSPU to operate as such. The registration with and permit issued by the 
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BUSPU is a condition precedent for securing a business permit or license from the 
appropriate authorities. 
SEC. 9. 
Assistance from other Government Agencies. - The BUSPU 
can call upon and deputize membElrs of the different law enforcement agencies and 
other appropriate government offices to assure the effective compliance of this act. 
SEC. 10. 
Prosecution of Violators. -
The BUSPU shall strictly pursue 
criminal action against those apprehended under this Act for the execution of penalties 
and application of remedies as provided in the provisions of infringement, Chapter XVII 
of the Intellectual Property Code of the Philippines. 
SEC. 11. 
Establishment of Intel/ectual Property Courts. -
In order to 
ensure a speedy disposition of copyright infringement cases on software piracy, there 
shall be established at least one (1) Intellectual Property (IPR) court branch in every 
Regional Trial Court in the country which shall have the exclusive original jurisdiction 
over intellectual property cases. The presiding judge to be appointed in the IPR courts 
must undergo training to be conducted by the Intellectual Property Office of the 
Philippines (IPOPHIL) and must have extensive experience in handling Intellectual 
Property related cases. 
SEC. 12. 
Funding. - In order to provide the necessary funds required for the 
annual operational expenditures of the BUSPU and the creation of the Intellectual 
Property Courts, the amount necessary to carryout their functions shall be included in 
the annual General Appropriations Act of the year following its enactment into law and 
thereafter. 
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I". 
SEC. 13. 
Repealing Clause. - The provision of any law, Issuance, Executive 
Order, Letter of Instruction, Rules or Regulations which are inconsistent with the 
provision of this act are hereby repealed, amended or modified accordingly. 
SEC. 14. 
Separability Clause.· If for any reason, any provision of this Act 
is declared invalid or unconstitutional, the remainder of this Act shall not be affected. 
SEC. 15. 
Effectivity Clause.· This Act shall take effect immediately upon 
publication in a newspaper of general circulation. 
Approved, 
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