Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Third Regular Session

8001

House Bill No.

Introduced by Representatives Ron P. Salo and Ciriaco S. Calalang

EXPLANATORY NOTE

Technology is evolving, and it is evolving fast. Every day, the intemet breeds
new technological advances that are placed under the control of our fingertips: may it
be new mobile applications or a new internet discovery to shape and re-shape the
world of internet experience. Powerful innovations of the internet age such as
uploading/downloading, linking, torrenting, and streaming create opportunities but
also enormous challenges — and unfortunately have been used to significantly
impede the goals of intellectual property protection online.

The Philippines is sadly one of the countries described by internet pirates as
“safe”, meaning one can upload, download, link, torrent, and stream infringing
content without fear of any consequence, including arrest, prosecution, or penalty.
Unlike in countries such as Australia, Indonesia, Malaysia, Singapore, and Thailand
where there are strict laws that provide for disabling access to these infringement
platforms, the Philippines continues to be a haven for cyber criminals who illegally
make content available on the internet.

Years ago, the Intellectual Property Office was able to disrupt the notorious
pirate torrent site, “KickAssTorrents (kat.ph)” by seizing the “.ph” domain (our country
code domain). However, these prolific pirates simply changed their domain to that of
another country (to .to for Tonga or .so for Somalia, for example). Since the
Philippine IPO had no jurisdiction over these countries’ domain registrars, the IPO
could not further disrupt KickAssTorrents. However, if the Philippines implements a
law to disable access to sites that infringe or facilitate infringement of copyright, it
can ensure no one in the Philippines can access such sites. Hundreds if not
thousands of sites have sprouted all over the web, including download sites, linking
sites, streaming sites, and cyberlockers that broadcast or allow unauthorized access
to copyrighted materials, often with a single click of a button. To date in the
Philippines, motion pictures and television programs, music, books, and other
copyrighted material have been relentlessly shared, copied, distributed, or streamed
over servers without much hope for protection for the copyright owner. This situation
can be remedied by the passage of a law that will empower the Intellectual Property
Office and enable local Internet Service Providers (ISPs) to take reasonable steps to
disable access to sites whenever these sites are reported to be infringing copyright
or facilitating copyright infringement.

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RA 8293 declares as its policy that “The State recognizes that an effective
intellectual and industrial property system is vital to the development of domestic and
creative activity, facilitates transfer of technology, attracts foreign investments, and
ensures market access for our products.” This intellectual property system must
constantly improve and evolve so as to meet the rapidly changing landscape of the
internet. “Whereas, it is a sad phenomenon that the works of the Filipino artists;
including but not limited to, actors, singers, painters and apps. developers are easily
subjected to counterfeiting and piracy in the internet. It is the obligation of the State
to protect these works by enacting legislation enabling Filipino artists to stop such
piracy. To these effect, the crop of Filipino artist, both current and past, are willing to
‘support the proactive action in protecting their rights.

In view of the foregoing, the approval of this bill is urgently sought.

noon cet casa

KABAYAN Partylist KABAYAN Partylist

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Third Regular Session
8001

House Bill No.

Introduced by Representatives Ron P. Salo and Ciriaco S. Calalang

AN ACT
ENABLING THE INTELLECTUAL PROPERTY OFFICE THROUGH THE
NATIONAL TELECOMMUNICATIONS COMMISSION TO CANCEL LICENSES OF
INTERNET SERVICE PROVIDERS THAT ALLOW WEBSITES TO INFRINGE OR
TO FACILITATE INFRINGEMENT OF COPYRIGHT

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Philippine Online
Infringement Act”

SEC. 2. Declaration of Policy. - The State recognizes the protection of
intellectual property as an integral aspect of national development and growth. Being
a signatory to global intellectual property laws and agreements, the State shall
respect and abide by the policies of these international agreements and shall strive
to provide adequate protection and effective enforcement of intellectual property
rights.

It is a policy of the State to recognize the vital role of communication and
information in nation-building. As such, government agencies dedicated to the
promotion and administration of communication and information should be
empowered to regulate private companies that operate businesses which operate in
the internet space, some of whom may be violating or facilitating violations of
intellectual property rights.

ARTICLE |
DEFINITION OF TERMS

SEC. 3. Definition of Terms. — As used in this Act, the following terms shall
mean:

a) “Commission” shall mean the National Telecommunications Commission.

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b) “Copyright” shall be defined consistent with that term in Republic Act RA
8293 as amended.

c)

“Online location” shall mean any collection of related web pages
accessible by a user through a domain, IP address, or uniform resource
locator (URL);

d)

“Infringing online location” shall mean any online location the primary
purpose of which is to infringe copyright or facilitate copyright infringement;

e) “Internet service provider” shall mean any person or legal entity operating
in the Philippines that provides customers with access to an online
location, including through information location tools;

ARTICLE I
APPLICATION FOR DISABLING ACCESS TO INFRINGING ONLINE LOCATIONS
SEC. 4. Application to the Office. - A copyright owner, or an exclusive
licensee thereof, may file an application to the Intellectual Property Office (IPO) to
require internet service providers to take reasonable steps to disable access to an
infringing online location.

a) To accommodate requests of both local and international applicants, the
application may be made by completing a form available at the IPO
website;

b) The application shall indicate:

i) the domains, IP addresses, and/or URLs by which each infringing
online location is accessible;

ji) the copyrighted material of the applicant which is being infringed;
iii) other matters which the IPO may consider including:
a. the flagrancy of such infringement;
b. whether the online location makes available or contains
directories, indexes or categories of the means to infringe, or
facilitate an infringement of, copyright;

c. whether the owner or operator of the online location
demonstrates a disregard for copyright generally;

d. whether access to the online location has been disabled by

orders from any court of another country or territory on the
ground of or related to copyright infringement;

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e. the proportionate effects and impact that blocking may have on
local users, whether individually or collectively; and/or

f. any other relevant matter.

c) One application may be submitted for multiple infringing online locations,
however, the requirements of this Section must be met and set out in the
application.

SEC. 5. Review by the IPO. — Upon receipt of the application form, the IPO
shall review the same and determine whether the online location meets the
requirements of Section 4 of this Act.

a) The IPO shall, within fifteen (15) days from the filing of the application,
prepare a report of its findings and provide the applicant and internet
service providers with the same;

b) A Review Committee shall be formed to review all applications received
and the IPO report; and

¢) The Committee, in reviewing the application and IPO report, may give due
consideration to all the matters set out in Section 4(b).

SEC. 6. Action by the IPO. — If the Committee agrees with the IPO report
and its findings that the online location meets the requirements of Section 4 of this
Act, the Committee shall within ten (10) days from the promulgation of the IPO report
send a Notice of approval back to the IPO.

a) The IPO shall then, within five (5) days, render an Order requiring internet
service providers to take reasonable steps to disable access to the
infringing online location. A copy of the said Order shall likewise be given
‘to the applicant;

b) Otherwise, the IPO shall, within five (5) days, send a Notice to the
applicant that its application is denied, setting forth the grounds for denial;
and

°)

Whether the application is granted or denied, the IPO shall submit its
Report accompanied by the Order, if any, to the National
Telecommunications Commission.

SEC. 7. Watch List. - Even if the online location does not meet the
requirements of Section 4 of this Act, the IPO shall keep a watch list of all online
locations for which there has been an application under this Act.

a) The IPO shall keep a list of all infringing online locations for which Orders
have been rendered under this Act. The IPO may at any time during the
operation of the Orders notify the internet service providers should it
become known that the infringing online location be accessible from a

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a


different domain name, IP address, or URL, and make such different
domain name, IP address, or URL subject to the Orders.

ARTICLE Ill
RESPONSIBILITIES OF THE ISPs

SEC. 8. Response to the Order of the Office. — Upon receipt of the Order
enjoining them to block a website, Internet Service Providers (ISPs) may, if they
object to any part of the Order, submit a response to the Office setting out the
grounds for such objection within five (5) calendar days. In this case, the Office may
alter the Order within ten (10) calendar days as it thinks fit, or, if no alteration is
required, then the Response is deemed rejected and the Order shall remain in force.

SEC. 9. Complying with the Order. — Subject to Section 8, within ten (10)
days following the issuance of an Order, or an alteration of an Order, as the case
may be, the internet service providers must comply with the Order.

a) Should the internet service provider be unable to comply with the Order
within ten (10) days from its issuance, it must submit a written explanation
and an action plan to the IPO; and

b) Failure to comply with the Order within ten (10) days of its issuance and
without a written explanation and action plan shall subject the internet
service provider to liability for penalties under Article IV of this Act.

SEC. 10. Actions to be Taken. — Reasonable steps to disable access to an
infringing online location shall include DNS blocking in respect of all Domain Names
from which the infringing online location operates; IP Address blocking or re-routing
in respect of static IP Addresses for infringing online locations; URL blocking in
respect of all URLs of the Target Online Locations and their Domain Names; or any
alternative technical means for disabling access to the infringing online location as
agreed in writing between the applicants and an internet service provider.

a) The internet service provider must redirect any communication by a user
of its service seeking access to an infringing online location disabled
pursuant to an Order to a webpage informing users who have been
redirected to the webpage that access to that infringing online location has
been disabled by Order of the IPO because the infringing online location
infringes or facilitates the infringement of copyright; and

b)

The internet service provider subject to the Order shall submit a quarterly
report to the IPO and to the Commission informing them of the status of
compliance with the Order, namely, any relevant information regarding the
availability of the infringing online location in the Philippines via the internet
service provider.

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ARTICLE IV
CANCELLATION OF LICENSE

SEC. 11. Recommendation to the Commission. - The |PO shall make
recommendations to the Commission to cancel the license of an internet service
provider that commits the following acts:

a) refusal to comply with an Order from the IPO to take reasonable steps to
disable access to an infringing online location;

b) failure to comply with an Order within ten (10) days of its issuance and
without the requisite written explanation and action plan; and

) any gross violation of Article Ill of this Act;

SEC. 12. Notice and Conference. — Within five (5) days upon receipt of the
Recommendation from the IPO, the Commission shall schedule a hearing to
investigate alleged violations of the internet service provider described in the
preceding section.

The Commission shall serve a Notice to the internet service provider and
schedule a conference for the same to determine whether the cancellation of the
license of the internet service provider shall be proper.

The conference shall be scheduled no more than fifteen (15) days from the
date the Commission receives the recommendation from the IPO. The conference
shall be concluded within a single day and a final judgment must be rendered
therein.

SEC. 13. Cancellation of License.—if the recommendation of the IPO to
cancel the license of the internet service provider is proper and meritorious, the
Commission shall facilitate the prompt cancellation of the license of the internet
service provider.

ARTICLE V
MISCELLANEOUS PROVISIONS

SEC. 14. Implementing Rules and Regulations. — Within ninety (90) days
from the effectivity of this Act, the Office, in consultation with the appropriate
agencies and departments, shall promulgate the necessary rules and regulations for
the implementation of this Act.

SEC. 15. Appropriations. — The amount necessary for the implementation of
this Act shall be included in the General Appropriations Act.

SEC. 16. Separability Clause. - If any provision of this Act is declared invalid
or unconstitutional, the remaining parts or provisions not affected shall remain valid.

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SEC. 17. Repealing Clause. — All acts, executive orders, administrative
orders, proclamations, rules and regulations or parts thereof inconsistent with any of
the provisions of this Act are hereby repealed or modified accordingly.

SEC. 18. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved.

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