FOURTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
First Regular Session 
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Introduced by Senator Gregorio B. Honasan II 
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, hundreds of thousands of bootleg optical disks most 
specially business software, continue to penetrate and escalate practically in 
every retail shop 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 into a multi-million industry. 
The very slow disposition of cases against violators is another hindrance 
to a successful campaign against 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 watchlist 
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 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 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. 
OR10 6. 
HONASAN II 
Senator 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
) 
First Regular Session 
) 
Introduced by Senator Gregorio B. Honasan II 
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. Title of the Act. - This Act shall be known as the "Anti- 
Business Software Copyright Protection Act of 2007". 
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. 
4. Department - shall refer to the Department of Trade and Industry. 


5. License - shall refer to the permit issued by the BUSPU to all 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 Ill. 
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. 
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 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 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 
safe, 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 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 members of the different law enforcement agencies and 


other appropriate government offices to assure the effective compliance of this 
act. 
SEC. I O .  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 XVll of the Intellectual Property Code of the Philippines. 
SEC. 11. Establishment of Intellectual 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. 
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. 
This Act shall take effect immediately upon 
publication in a newspaper of general Circulation. 
Approved,