Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH (15™") CONGRESS
First Regular Session

COMMITTEE REPORT NO. 421
Submitted by the COMMITTEE ON TRADE AND INDUSTRY on

384i
Re : House BillNo.

Recommending its approval in substitution of House Bill Nos. 47, 267 and 2040
Sponsors: _ Representatives Rodriguez R., Rodriguez M., Angara, Tieng,

Velarde, Garcia AR. Duavit and the Members of the
Committee on Trade and Industry

Mr. Speaker:

The COMMITTEE ON TRADE AND INDUSTRY to which were referred House
Bill No. 47, introduced by Representatives Rodriguez R., Rodriguez M., Aumentado
and Evardone, entitled:
AN ACT

AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293
ENTITLED “AN ACT PRESCRIBING THE INTELLECTUAL PROPERTY
CODE AND ESTABLISHING THE INTELLECTUAL PROPERTY OFFICE,
PROVIDING FOR ITS POWERS AND FUNCTIONS AND FOR OTHER
PURPOSES”

House Bill No. 267, introduced by Representative Angara, entitled:

AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO.
8293, OTHERWISE KNOWN AS THE “THE INTELLECTUAL
PROPERTY CODE OF THE PHILIPPINES”, AND FOR OTHER
PURPOSES

and House Bill No. 2040, introduced by Representatives Tieng and Velarde, entitled:

AN ACT
GRANTING EXEMPTIONS FROM SECURING PERMISSION
FROM THE PUBLISHER OR COPYRIGHT OWNER OF
PRINTED MATERIALS TO REPRODUCE THE SAME IN A
SPECIALIZED FORMAT FOR THE EXCLUSIVE USE OF BLIND


OR VISUALLY- IMPAIRED INDIVIDUALS, AMENDING FOR
‘THIS PURPOSE SECTION 185 OF REPUBLIC ACT NO. 8293,
OTHERWISE KNOWN AS THE “INTELLECTUAL PROPERTY
CODE OF THE PHILIPPINES ”, AND FOR OTHER PURPOSES

has considered the same and has the honor to report them back to the House of
Representatives with the recommendation that the attached House Bill No.
oe , entitled:

AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293
ENTITLED “AN ACT PRESCRIBING THE INTELLECTUAL
PROPERTY CODE AND ESTABLISHING THE INTELLECTUAL
PROPERTY OFFICE, PROVIDING FOR ITS POWERS AND
FUNCTIONS AND FOR OTHER PURPOSES”

be approved in substitution of House Bill Nos. 47, 267 and 2040, with
Representatives Rodriguez R., Rodriguez M., Angara, Tieng, Velarde, Aumentado,
Evardone, Garcia A. R., Apacible, Duavit, Biron, Defensor, Alvarez A., Trefias,
Casifio, Villarica, Mandanas, Fernandez, Garay, Teodoro, Del Rosario A.R.,
Sacdalan, Osmefia, Joson, Rodriguez I., Lacson-Noel, Yu, Ferrer J., Sahidulla,
Lagdameo A., Bonoan-David, Mellana, Sakaluran, Quisumbing, Unabia, Singson R.,
Batocabe, Colmenares, Haresco, Villar, Pancho, Enverga, Cojuangco E., Cajayon,
Tugna, Ty, Romualdez, Arroyo D., Gonzales A., Panotes, and Mercado-Revilla as
authors thereof.

Respectfully Submitted:
—

GARCIA

‘Committee on Trade and Industry

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES


Sr mornaanron

i}

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH (15"") CONGRESS
First Regular Session

nouse BL No.___ 8844
(In Substitution of House Bill Nos. 47, 267 and 2040)

Introduced by Representatives Rodriguez R., Rodriguez M., Angara, Tieng, Velarde,
Aumentado, Evardone, Garcia A. R., Apacible, Duavit, Biron, Defensor, Alvarez A., Trefias,
Casifio, Villarica, Mandanas, Fernandez, Garay, Teodoro, Del Rosario A.R., Sacdalan,
Osmefia, Joson, Rodriguez I., Lacson-Noel, Yu, Ferrer J., Sahidulla, Lagdameo A., Bonoan-
David, Mellana, Sakaluran, Quisumbing, Unabia, Singson R., Batocabe, Colmenares,
Haresco, Villar, Pancho, Enverga, Cojuangco E., Cajayon, Tugna, Ty, Romualdez, Arroyo
D., Gonzales A., Panotes, and Mercado-Revilla

AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293
ENTITLED “AN ACT PRESCRIBING THE INTELLECTUAL
PROPERTY CODE AND ESTABLISHING THE INTELLECTUAL
PROPERTY OFFICE, PROVIDING FOR ITS POWERS AND
FUNCTIONS AND FOR OTHER PURPOSES”

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
SECTION 1. Section 6 of Republic Act No. 8293, otherwise known as the Intellectual
Property Code of the Philippines, is hereby amended to read as follows:
“Sec. 6. The Organizational Structure of the IPO.
es R &
62 The Office shall be divided into [six (6)] SEVEN (7) Bureaus, each of which
shall be headed by a Director and assisted by an Assistant Director. These Bureaus
are:
(a) The Bureau of Patents;
(b) The Bureau of Trademarks;
(C) THE BUREAJ) OF COPYRIGHT;
(D) [c] The Bureau of Legal Affairs;
(E) [4] The Documentation Information and Technology Transfer Bureau;


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®le

|] The Management Information System and EDP Bureau; and

(G) [f] The Administrative, Financial and Personnel Services Bureau”.

SEC. 2. Sect
“See,
x
(b)

©

tion 7 of R.A. No. $293 is hereby amended to read as follows:
7. The Director General and Deputies Director General. —

% &
Exercise exclusive appellate jurisdiction over all decisions rendered by the
Director of Legal Affairs, the Director of Patents, the Director of Trademarks,
‘THE DIRECTOR OF COPYRIGHT, and the Director of the Documentation,
Information and Technology Transfer Bureau. The decisions of the Director
General in the exercise of his appellate jurisdiction in respect of the decisions of
the Director of Patents, and the Director of Trademarks shall be appealable to
the Court of Appeals in accordance with the Rules of Court; and those in respect
of the decisions of the Director of Documentation, Information and Technology
Transfer Bureau shall be appealable to the Secretary of Trade and Industry; and
Exercise [original] APPELLATE jurisdiction [to resolve disputes] OVER
DECISIONS MADE BY THE DIRECTOR OF COPYRIGHT OVER
DISPUTES relating to the terms of a license involving the author's right to
public performance or other communication of his work. The decisions of the
Director General in these cases shall be appealable to the Secretary of Trade and
Industry.”

SEC. 3. A new Section 9A is hereby inserted after Section 9 of R.A. No. 8293, to read as

follows:

“Sec. 9A. THE BUREAU OF COPYRIGHT. - THE BUREAU OF COPYRIGHT
SHALL HAVE THE FOLLOWING FUNCTIONS:

9AL

9A2,

9A3.

|. ACCEPT, REVIEW AND DECIDE ON APPLICATIONS FOR

THE ACCREDITATION OF COLLECTIVE MANAGEMENT

ORGANIZATIONS OR SIMILAR ENTITIES;

CONDUCT STUDIES AND RESEARCHES IN THE FIELD OF

COPYRIGHT AND RELATED RIGHTS IN ORDER TO ASSIST

‘THE DIRECTOR GENERAL IN FORMULATING POLICIES ON

‘THE ADMINISTRATION AND MANAGEMENT OF COPYRIGHT

AND RELATED RIGHTS;

. EXERCISE ORIGINAL JURISDICTION. TO RESOLVE
2,


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9A,

OAS.

9A.

9AT

9A8

DISPUTES RELATING TO THE TERMS OF A_ LICENSE
INVOLVING THE AUTHOR'S RIGHT TO PUBLIC
PERFORMANCE OR OTHER COMMUNICATION OF HIS WORK.
THE DECISIONS OF THE DIRECTOR OF COPYRIGHT IN THESE
CASES SHALL BE APPEALABLE TO THE DIRECTOR GENERAL;
ASSIST THE DOCUMENTATION, INFORMATION AND
TECHNOLOGY TRANSFER BUREAU (DITTB) IN EDUCATING THE
PUBLIC AND BUILDING AWARENESS OF COPYRIGHT — AND
RELATED RIGHTS THROUGH SEMINARS, LECTURES — AND
OTHER SIMILAR ACTIVITIES;

PROVIDE INFORMATION TO THE DIRECTOR GENERAL
REGARDING MATTERS OF COPYRIGHT AND RELATED
RIGHTS THAT REQUIRE PUBLICATION IN THE IPO
GAZETTE;

COORDINATE WITH THE NATIONAL LIBRARY AND THE
SUPREME COURT LIBRARY FOR THE BUREAU TO
MAINTAIN A DATABASE OF DEPOSITED WORKS,
ASSIGNMENTS OR EXCLUSIVE LICENSES OF — COPYRIGHTED
WORKS AND OTHER DOCUMENTS, PARTICULARLY — THOSE
MENTIONED IN SECTIONS 182, 183, 191, AND 198;

COORDINATE WITH OTHER GOVERNMENT AGENCIES
AND THE PRIVATE SECTOR EFFORTS FOR THE BUREAU TO
FORMULATE AND IMPLEMENT PLANS AND POLICIES TO
STRENGTHEN THE PROTECTION OF COPYRIGHT AND
RELATED RIGHTS; AND

PROVIDE OTHER COPYRIGHT AND RELATED RIGHTS SERVICE
AND CHARGE REASONABLE FEES THEREFOR.”

SEC. 4, Section 13.2 of R.A. No. 8293 is hereby amended to read as follows:

“13.2. The Patent{and}, Trademark AND COPYRIGHT Administration Services

shall
@)

perform the following functions among others:
Maintain registers of assignments, mergings, licenses, and bibliographic on
patents [and], trademarks AND COPYRIGHT: PROVIDED, THAT


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NOTHING IN THIS SECTION SHALL BE DEEMED TO AMEND SEC.
172,2 OF REPUBLIC ACT NO. 8293;
(be) x x x

( x xx”

SEC. 5. Section 171.3 of R.A. No. 8293 is hereby amended to read as follows:
“Sec. 171. Definitions. - For the purpose of this Act, the following terms have the
following meaning
x ox x
171.3. “Communication to the public” or “communicate to the public” means ANY
COMMUNICATION TO THE PUBLIC, INCLUDING BROADCASTING,
REBROADCASTING, RETRANSMITTING BY CABLE, BROADCASTING
AND RETRANSMITTING BY SATELLITE, AND INCLUDES the making of a
work available to the public by wire or wireless means in such a way that members of
the public may access these works from a place and time individually chosen by
them;”

SEC. 6. Section 171.9 of R.A. No. 8293 is hereby amended to read as follows:
“171.9 “Reproduction” is the making of one (1) or more copies, TEMPORARY OR
PERMANENT, IN WHOLE OR IN PART, of a work or a sound recording in any
‘manner or form WITHOUT PREJUDICE TO THE PROVISIONS OF SECTION
185 OF THIS ACT (Sec.41[E], P.D. No. 49a);”

SEC.7. There shall be two new subsections to be added at the end of Sec. 171.11, to be
known as 171.12 and 171.13, both to read as follows:
“171.12 “TECHNOLOGICAL MEASURE” MEANS ANY TECHNOLOGY,
DEVICE OR COMPONENT THAT, IN THE NORMAL COURSE OF ITS
OPERATION, RESTRICTS ACTS IN RESPECT OF A WORK,
PERFORMANCE OR SOUND RECORDING, WHICH ARE NOT
AUTHORIZED BY THE AUTHORS, PERFORMERS OR PRODUCERS OF
SOUND RECORDINGS CONCERNED OR PERMITTED BY LAW.
171.13. “RIGHTS = MANAGEMENT INFORMATION” ~— MEANS
INFORMATION WHICH IDENTIFIES THE WORK, SOUND RECORDING
OR PERFORMANCE; THE AUTHOR OF THE WORK, PRODUCER OF
THE SOUND RECORDING OR PERFORMER OF THE PERFORMANCE;
4


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THE OWNER OF ANY RIGHT IN THE WORK, SOUND RECORDING OR
PERFORMANCE; OR INFORMATION ABOUT THE TERMS AND
CONDITIONS OF THE USE OF THE WORK, SOUND RECORDING OR
PERFORMANCE; AND ANY NUMBERS OR CODES THAT REPRESENT
SUCH INFORMATION, WHEN ANY OF THESE ITEMS IS ATTACHED TO
A COPY OF THE WORK, SOUND RECORDING OR FIXATION OF
PERFORMANCE OR APPEARS IN CONJUNCTION WITH THE
COMMUNICATION TO THE PUBLIC OF A WORK, SOUND RECORDING
OR PERFORMANCE.

SEC. 8. The Chapter Title of Chapter VII, Part IV, the Law on Copyright, is hereby

amended as follows:

Chapter VII
“Transfer {or}, Assignment AND LICENSING of Copyright”

SEC. 9. Section 180 of R.A. No. 8293 is hereby amended to read as follows:

“Sec. 180. Rights of Assignee OR LICENSEE. - 180.1. The copyright may be
assigned OR LICENSED in whole or in part. Within the scope of the assignment OR
LICENSE, the assignee OR LICENSEE is entitled to all the rights and remedies
which the assignor OR LICENSOR had with respect to the copyright.
180.2. The copyright is not deemed assigned OR LICENSED inter vivos, in whole
or in part, unless there is a written indication of such intention,

ere
180.4 ANY EXCLUSIVITY IN THE ECONOMIC RIGHTS IN A WORK
MAY BE EXCLUSIVELY LICENSED. WITHIN THE SCOPE OF THE
EXCLUSIVE LICENSE, THE LICENSEE IS ENTITLED TO ALL THE
RIGHTS AND REMEDIES WHICH THE LICENSOR HAD WITH RESPECT
‘TO THE COPYRIGHT,
180.5 THE COPYRIGHT OWNER HAS THE RIGHT TO REGULAR
STATEMENTS OF ACCOUNTS FROM THE ASSIGNEE OR THE
LICENSEE WITH REGARD TO ASSIGNED OR LICENSED WORK. THE
ACCOUNTING SHALL BE MADE IN WRITING AND SHALL BE GIVEN
TO THE AUTHOR AT LEAST ONCE A YEAR ACCOMPANIED BY SUCH
INFORMATION, INCLUDING BOOKS OF ACCOUNTS, CONTRACTS RE-



ASSIGNING HIS RIGHTS TO HIS WORK, AND OTHER SUCH
DOCUMENTS THAT WILL HELP THE AUTHOR OR COPYRIGHT

2
3 OWNER DETERMINE THE PROPER REMUNERATION DUE HIM.”
4 SEC. 10, Section 181 of R.A. No. 8293 is hereby amended to read as follows:
5 “Sec. 181. Copyright and Material Object. - The copyright is distinct from the
é property in the material object subject to it, Consequently, the transfer [or],
7 assignment OR LICENSING of the copyright shall not itself constitute a transfer of
8 the material object. Nor shall a transfer or assignment of the sole copy or of one or
9 several copies of the work imply transfer [or], assignment OR LICENSING of the
10 copyright. (See. 16, P.D. No. 49)”
11 SEC. 11. Section 183 of R.A. No. 8293 is hereby amended to read as follows:
12 “Sec, 183. Designation of Society. ~ The [copyright] owners OF COPYRIGHTS
13 AND RELATED RIGHTS or their heirs may designate a society of artists, writers,
14 [or] composers AND OTHER RIGHT-HOLDERS to [enforce] COLLECTIVELY
15 MANAGE their economic or moral rights on their behalf. FOR THE SAID
16 SOCIETIES TO ENFORCE THE RIGHTS OF THEIR MEMBERS, THEY
7 SHALL FIRST SECURE THE NECESSARY ACCREDITATION FROM THE
18 INTELLECTUAL PROPERTY OFFICE. (Sec. 32, P.D. No. 49a)”
19 SEC. 12. Section 185.1 of R.A. No. 8293 is hereby amended to read as follows:
20 “Sec. 185, Fair Use of a Copyrighted Work. -185.1 The fair use of a copyrighted
2 work for criticism, comment, news reporting, teaching including [multiple]
22 LIMITED NUMBER OF copies for classroom use, scholarship, research, and
23 similar purposes is not an infringement of copyright. Decompilation, which is
24 understood here to be the reproduction of the code and translation of the forms of
25 [the] A computer program to achieve the inter-operability of an independently created
26 computer program with other programs may also constitute fair use UNDER THE
7 CRITERIA ESTABLISHED BY THIS SECTION, TO THE EXTENT THAT
28 SUCH DECOMPILATION IS DONE FOR THE PURPOSE OF OBTAINING
29 THE INFORMATION NECESSARY TO ACHIEVE SUCH INTER-
30 OPERABILITY. In determining whether the use made of a work in any particular
31 case is fair use, the factors to be considered shall include:
32 (2) The purpose and character of the use, including whether suchuseisof a
33 commercial nature or is for non-profit educational purposes;


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SEC. 15. Section 190.3 of R.A. No. 8293 is hereby renumbered and amended as the sole

provision under Section 190 to read as follows:

“SEC, [190.3] 190. [Importation for Personal Purposes] IMPORTATION AND
EXPORTATION OF INFRINGING MATERIALS ~ Subject to the approval of
the Secretary of Finance, the Commissioner of Customs is hereby empowered to
make rules and regulations for preventing the importation OR EXPORTATION of
articles the importation OR EXPORTATION of which is prohibited under this
[Section] ACT and under treaties and conventions to which the Philippines may be &
party and for seizing and condemning and disposing of the same in case they are
discovered after they have been imported OR BEFORE THEY ARE EXPORTED.
(Sec. 30, P.D. No. 49)”

SEC. 16. Section 191 of R.A. No. 8293 is hereby amended to read as follows:

“Sec. 191, [Registration and ] DEPOSIT AND NOTICE OF DEPOSIT with THE
National Library and the Supreme Court Library. - WITHIN THREE (3) WEEKS
[A] after the first public dissemination [of] OR performance by authority of the
copyright owner of a work falling under Subsections [172.1, 172.2 and 172.3] 1721
(A), 172.1 (B), 172.1 (C) AND 173.1 of this Act, there shall, for the purpose of
completing the records of the National Library and the Supreme Court Library,
[within three (3) weeks,] be registered and deposited with it by personal delivery or
by registered mail, two (2) complete copies or reproductions of the work in such form
as the directors of said libraries may prescribe IN ACCORDANCE WITH
REGULATIONS: PROVIDED, THAT ONLY WORKS IN THE FIELD OF
LAW SHALL BE DEPOSITED WITH THE SUPREME COURT LIBRARY. A
[certificate] NOTICE of deposit shall be issued for which the prescribed fee shall be
collected [and the copyright owner shall be exempt from making additional deposit of
the works with the National Library and the Supreme Court Library under other laws.
If, within three (3) weeks after receipt by the copyright owner of a written demand
from the directors for such deposit, the required copies or reproductions are not
delivered and the fee is not paid, the copyright owner shall be liable to pay a fine
equivalent to the required fee per month of delay and to pay to the National Library
and the Supreme Court Library the amount of the retail price of the best edition of the
work, Only the above mentioned classes of work shall be accepted for deposit by the
National Library and the Supreme Court Library].(Sec. 26, P.D. No. 49a)”


(b) The nature of the copyrighted work;
(©) The amount and substantiality of the portion used in relation to the

copyrighted work as a whole; and
(@) The effect of the use upon the potential market for or value of the

copyrighted work

Ir IS ALSO NOT AN INFRINGEMENT OF THE COPYRIGHTED

WORK TO REPRODUCE OR DISTRIBUTE COPIES OF PUBLISHED
ARTICLES OR MATERIALS IF SUCH COPIES ARE REPRODUCED OR
DISTRIBUTED IN A SPECIALIZED FORMAT EXCLUSIVELY FOR THE
USE OF THE BLIND, VISUALLY- AND READING-IMPAIRED PERSONS:
PROVIDED, THAT SUCH COPIES AND DISTRIBUTION SHALL BE MADE
ON A NON-PROFIT BASIS AND SHALL INDICATE THE COPYRIGHT
OWNER AND THE DATE OF THE ORIGINAL PUBLICATION: PROVIDED
FURTHER, THAT SUCH REPRODUCTION OR DISTRIBUTION IS NOT IN
CONFLICT WITH THE NORMAL EXPLOITATION OF THE WORK AND
DOES NOT UNREASONABLY PREJUDICE THE LEGITIMATE
INTERESTS OF THE COPYRIGHT OWNER. THIS DISTRIBUTION IS
ALSO PERMITTED IN CASE THE COPIES HAVE BEEN MADE ABROAD
AND THE CONDITIONS MENTIONED HAVE BEEN FULFILLED.”

SEC. 13. Section 188.1 of R.A. No. 8293 is hereby amended to read as follows:

“Sec. 188. Reprographic Reproduction by Libraries. - 188.1 Notwithstanding the
provisions of Subsection [177.6] 177.1, any library or archive whose activities are not
for profit may, without the authorization of the author [of] OR copyright owner, make
a [single copy] LIMITED NUMBER OF COPIES of the work, AS MAY BE
NECESSARY FOR SUCH INSTITUTIONS TO FULFILL THEIR MANDATE,
by reprographic reproduction:
x x Xx
(c) Where the making of such [a copy] LIMITED COPIES is in order to preserve
and, if necessary in the event that it is lost, destroyed or rendered unusable,
replace a copy, or to replace, in the permanent collection of another similar library
or archive, a copy which has been lost, destroyed or rendered unusable and copies
are not available with the publisher.”
14. Sections 190.1 and 190.2 of R.A. 8293 are deleted in their entirety.


1 SEC. 17. Section 198 of R.A. No. 8293 is hereby amended to read as follows:
2 “Sec. 198, Term of Moral Rights. — 198.1. The right{s} of an author under [this
3 chapter] SECTION 193.1 shall last during the lifetime of the author and [for fifty
4 (50) years] IN PERPETUITY after his death [and shall not be assignable or subject
5 to license.] WHILE THE RIGHTS UNDER SECTIONS 193.2, 193.3 AND 193.4
é SHALL BE COTERMINOUS WITH THE ECONOMIC RIGHTS, THE
7 MORAL RIGHTS SHALL NOT BE ASSIGNABLE OR SUBJECT TO
8 LICENSE. The person or persons to be charged with the posthumous enforcement of
9
0)

these rights shall be named in [writing to] A WRITTEN INSTRUMENT WHICH
SHALL be filed with the National Library. In default of such person or persons, such
n enforcement shall devolve upon either the author’s heirs, and in default of the heirs,

12 the Director of the National Library.”

13 SEC. 18. Section 208 of R.A. No. 8293 is hereby amended to read as follows:

14 “Sec. 208. Scope of Right. -Subject to the provisions of Section 212, producers of
15 sound recordings shall enjoy the following exclusive rights:

16 208.1 The right to authorize the direct or indirect reproduction of their sound
es recordings, in any manner or form; [the placing of these reproductions in
18 the market and the right of rental or lending:]

19 208.2 The right to authorize the first public distribution of the original and
20 copies of their sound recordings through sale or rental or other forms of,
21 transferring ownership; [and]

22 208.3 The right to authorize the commercial rental to the public of the original

23 and copies of their sound recordings, even after distribution by them [by]
24 or pursuant to authorization by the producer (.]; (Sec. 46,P.D. No. 49a)
25 AND

26 208.4 THE RIGHT TO AUTHORIZE THE MAKING AVAILABLE TO THE
27 PUBLIC OF THEIR SOUND RECORDINGS IN SUCH A WAY THAT.
28 MEMBERS OF THE PUBLIC MAY ACCESS THE SOUND
29 RECORDING FROM A PLACE AND AT A TIME INDIVIDUALLY
30 CHOSEN OR SELECTED BY THEM, AS WELL AS OTHER
31 TRANSMISSIONS OF A SOUND RECORDING WITH LIKE
32 EFFECT.”


1 SEC. 19, Section 212 of R.A. No. 8293 is hereby amended to read as follows:
“Sec. 212. Limitations on Rights. — [Sections 203, 208 and 209 shall not apply where

2
3 the acts referred to in those Sections are related to:] THE PROVISIONS OF
4 CHAPTER VIII SHALL APPLY MUTATIS MUTANDIS TO THE RIGHTS OF
5 PERFORMERS, PRODUCERS OF SOUND RECORDINGS AND
6 BROADCASTING ORGANIZATIONS.”

7 SEC. 20. Section 216 of R.A. No, 8293 is hereby amended to read as follows:
8 “Sec, 216, INFRINGEMENT. A PERSON INFRINGES A RIGHT PROTECTED
9 UNDER THIS ACT WHEN ONE:

10 (A) DIRECTLY COMMITS AN INFRINGEMENT;

n (B) BENEFITS FINANCIALLY FROM THE INFRINGING ACTIVITY OF

12 ANOTHER PERSON WHO COMMITS AN INFRINGEMENT IF THE

13 PERSON BENEFITING HAS BEEN GIVEN NOTICE OF THE

4 INFRINGING ACTIVITY AND HAS THE RIGHT AND ABILITY TO

15 CONTROL THE ACTIVITIES OF THE OTHER PERSON; OR

16 (©) PURPOSELY AND WITH THE INTENT TO ENABLE OR INDUCE

7 INFRINGEMENT BY ANOTHER PERSON, AND MATERIALLY

18 CONTRIBUTES TO IT.

9 216.1 Remedies for Infringement. - Any person infringing a right protected under

20 this law shall be liable:

21 x x x

22 (b) TO [Plpay to the copyright proprietor or his assigns or heirs such actual

23 damages, including legal costs and other expenses, as he may have incurred due

24 to the infringement as well as the profits the infringer may have made due to

25 such infringement, and in proving profits the plaintiff shall be required to prove

26 sales only and the defendant shall be required to prove every element of cost

27 which he claims, or, in lieu of actual damages and profits, such damages which

28 to the court shall appear to be just and shall not be regarded as penalty:

29 PROVIDED, THAT THE AMOUNT OF DAMAGES TO BE AWARDED

30 SHALL BE DOUBLED AGAINST ANY PERSON WHO:

31 (i) CIRCUMVENTS EFFECTIVE TECHNOLOGICAL MEASURES;

32 OR

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(i) HAVING REASONABLE GROUNDS TO KNOW THAT IT WILL
INDUCE, ENABLE, FACILITATE OR CONCEAL THE
INFRINGEMENT, REMOVE OR ALTER ANY ELECTRONIC
RIGHTS MANAGEMENT INFORMATION FROM A COPY OF A
WORK, SOUND RECORDING, OR FIXATION OF A
PERFORMANCE, OR DISTRIBUTE, IMPORT FOR
DISTRIBUTION, BROADCAST, OR COMMUNICATE TO THE
PUBLIC WORKS OR COPIES OF WORKS WITHOUT
AUTHORITY, KNOWING THAT ELECTRONIC RIGHTS
MANAGEMENT INFORMATION HAS BEEN REMOVED OR
ALTERED WITHOUT AUTHORITY.

(©) TO [Djdeliver under oath, for impounding during the pendency of the action,
upon such terms and conditions as the court may prescribe, sales invoices and

other documents evidencing sales, all articles and their packaging alleged to

infringe a copyright and implements for making them.

(4) TO [D]deliver under oath for destruction without any compensation all
infringing copies or devices, as well as all plates, molds, or other means for
making such infringing copies as the court may order.

(& TO [Slsuch other terms and conditions, including the payment of moral and
exemplary damages, which the court may deem proper, wise and equitable and
the destruction of infringing copies of the work even in the event of acquittal in
a criminal case.

THE COPYRIGHT OWNER MAY ELECT, AT ANY TIME BEFORE
FINAL JUDGMENT IS RENDERED, TO RECOVER INSTEAD OF ACTUAL
DAMAGES AND PROFITS, AN AWARD OF STATUTORY DAMAGES FOR
ALL INFRINGEMENTS INVOLVED IN AN ACTION IN A SUM
EQUIVALENT TO THE FILING FEE OF THE INFRINGEMENT ACTION
BUT NOT LESS THAN FIFTY THOUSAND PESOS (Php50,000.00). IN
AWARDING STATUTORY DAMAGES, THE COURT MAY CONSIDER THE
FOLLOWING FACTORS:

(1) THE NATURE AND PURPOSE OF THE INFRINGING ACT;
(2) THE FLAGRANCY OF THE INFRINGEMENT;


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(3) WHETHER THE DEFENDANT ACTED IN BAD FAITH;

(4) THE NEED FOR DETERRENCE;

(5) | ANY LOSS THAT THE PLAINTIFF HAS SUFFERED OR IS LIKELY
TO SUFFER BY REASON OF THE INFRINGEMENT; AND

(6) ANY BENEFIT SHOWN TO HAVE ACCRUED TO THE DEFENDANT.
BY REASON OF THE INFRINGEMENT.

IN CASE THE INFRINGER WAS NOT AWARE AND HAD NO REASON TO.

BELIEVE THAT HIS/HER ACTS CONSTITUTE AN INFRINGEMENT OF

COPYRIGHT, THE COURT IN ITS DISCRETION MAY REDUCE THE

AWARD OF STATUTORY DAMAGES TO A SUM OF NOT MORE THAN

TEN THOUSAND PESOS (PhP 10,000.01 PROVIDED, THAT THE

AMOUNT OF DAMAGES TO BE AWARDED SHALL BE DOUBLED

AGAINST ANY PERSON WHO:

()  CIRCUMVENTS EFFECTIVE TECHNOLOGICAL MEASURES;
OR

(i) | HAVING REASONABLE GROUNDS TO KNOW THAT IT WILL
INDUCE, ENABLE, FACILITATE OR CONCEAL THE
INFRINGEMENT, REMOVE OR ALTER ANY ELECTRONIC
RIGHTS MANAGEMENT INFORMATION FROM A COPY OF A
WORK, SOUND RECORDING, OR FIXATION OF A
PERFORMANCE, OR DISTRIBUTE, IMPORT FOR DISTRIBUTION,
BROADCAST, OR COMMUNICATE TO THE PUBLIC WORKS OR
COPIES OF WORKS WITHOUT AUTHORITY, KNOWING THAT
ELECTRONIC RIGHTS MANAGEMENT INFORMATION HAS
BEEN REMOVED OR ALTERED WITHOUT AUTHORITY,

216.2 In an infringement action, the court shall also have the power to order the
seizure and impounding of any article which may serve as evidence in the
court proceedings [.] , IN ACCORDANCE WITH THE RULES ON
SEARCH AND SEIZURE INVOLVING VIOLATIONS OF
INTELLECTUAL PROPERTY RIGHTS ISSUED BY THE SUPREME.
COURT. (Sec. 28, P.D. No. 49a)

12


13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

‘THE FOREGOING SHALL NOT PRECLUDE AN INDEPENDENT SUIT FOR
RELIEF BY THE INJURED PARTY BY WAY OF DAMAGES, INJUNCTION,

ACCOUNTS OR OTHERWISE.”

SEC. 21. Section 217.2 of R.A. No. 8293 is hereby amended as follows:
“217.2. In determining the number of years of imprisonment and the amount of fine,

the court shall consider the value of the infringing materials that the defendant

has produced or manufactured and the damage that the copyright owner has

PROVIDED, THAT THE

suffered by reason of the infringement{.):
RESPECTIVE MAXIMUM PENALTY STATED IN SEC. 217. 1 (A), (B)
AND (C) HEREIN FOR THE FIRST, SECOND, THIRD AND
SUBSEQUENT OFFENSE, SHALL BE IMPOSED WHEN THE
INFRINGEMENT IS COMMITTED BY:

(i) THE CIRCUMVENTION OF EFFECTIVE TECHNOLOGICAL
MEASURES; OR

(i) THE REMOVAL OR ALTERATION OF ANY ELECTRONIC
RIGHTS MANAGEMENT INFORMATION FROM A COPY OF A
WORK, SOUND RECORDING, OR FIXATION OF A
PERFORMANCE, BY A PERSON, KNOWINGLY AND
WITHOUT AUTHORITY; OR

(ii) THE DISTRIBUTION, IMPORTATION FOR DISTRIBUTION,
BROADCAST, OR COMMUNICATION TO THE PUBLIC OF
WORKS OR COPIES OF WORKS, BY A PERSON WITHOUT
AUTHORITY, KNOWING THAT ELECTRONIC RIGHTS
MANAGEMENT INFORMATION HAS BEEN REMOVED OR
ALTERED WITHOUT AUTHORITY.”

SEC. 22. Section 218.1 of R.A. No. 8293 is hereby amended to read as follows:
“Sec. 218. Affidavit Evidence - 218.1. In an action under this Chapter, an affidavit

made before a notary public by or on behalf of the owner of the copyright in any work
or other subject matter and stating that:
(a) At the time specified therein, copyright subsisted in the work or other subject
matter;
(b) He or the person named therein is the owner of the copyright; and
13


aaron

on

(©) The copy of the work or other subject matter annexed thereto is a true copy

thereof [,];
shall be admitted in evidence in any proceedings [for an offense] under this Chapter

and shall be prima facie proof of the matters therein stated until the contrary is
proved, and the court before which such affidavit is produced shall assume that the
affidavit was made by or on behalf of the owner of the copyright.”

SEC. 23. A new Section 220A shall be inserted after Section 220.2 of R.A. No, 8293 to read

as follows:
“SEC. 220A. DISCLOSURE OF INFORMATION.
220A.1. WHERE ANY ARTICLE OR ITS PACKAGING OR AN

IMPLEMENT FOR MAKING IT IS SEIZED OR DETAINED UNDER A
VALID SEARCH AND SEIZURE UNDER THIS ACT 1S, OR IS
REASONABLY SUSPECTED TO BE, BY AN AUTHORIZED
ENFORCEMENT OFFICER, IN VIOLATION OF THIS ACT, THE
SAID OFFICER SHALL, WHEREVER REASONABLY PRACTICABLE,
NOTIFY THE OWNER OF THE COPYRIGHT IN QUESTION OR HIS
AUTHORIZED AGENT OF THE SEIZURE OR DETENTION, AS THE
CASE MAY BE.

220A.2. IN THE CIRCUMSTANCES DESCRIBED IN THE PREVIOUS
PARAGRAPH, AN AUTHORIZED ENFORCEMENT OFFICER MAY
DISCLOSE TO THE OWNER OF THE COPYRIGHT OR TO HIS
AUTHORIZED AGENT THE FOLLOWING:

(A) THE TIME, AND THE ADDRESS OR PLACE, OF SEIZURE OR
DETENTION OF THE ARTICLE;

(B) THE NAME AND ADDRESS OF THE PERSON FROM WHOM
THE ARTICLE HAD BEEN SEIZED OR DETAINED;

(C) THE NATURE AND QUANTITY OF ARTICLES SEIZED OR
DETAINED;

(D) ANY STATEMENT MADE TO AN AUTHORIZED
ENFORCEMENT OFFICER BY THE PERSON IN CONNECTIO!
WITH THE SEIZURE OR DETENTION, EITHER WITH THE
PRIOR CONSENT IN WRITING OF THAT PERSON, OR

14


20
2

22
23
24
25
26
7
28
29
30
31

WITHOUT SUCH CONSENT WHERE THE PERSON IS DEAD
OR CANNOT AFTER REASONABLE ENQUIRIES BY AN
AUTHORIZED ENFORCEMENT OFFICER AS TO HIS
‘WHEREABOUTS BE FOUND; AND
(E) ANY OTHER INFORMATION OR DOCUMENT RELATING TO
THE ARTICLE SEIZED OR DETAINED WHICH AN
AUTHORIZED ENFORCEMENT OFFICER DEEMS FIT TO
DISCLOSE.
220A.3. THE OWNER OF THE COPYRIGHT OR HIS AUTHORIZED
AGENT SEEKING DISCLOSURE OF ANY INFORMATION OR
DOCUMENT THAT IS NOT REFERRED TO IN THE PREVIOUS
PARAGRAPH OR THAT IS NOT DISCLOSED BY THE AUTHORIZED
ENFORCEMENT OFFICER MAY APPLY TO THE COURT FOR AN
ORDER REQUIRING THE SAID OFFICER TO DISCLOSE SUCH
INFORMATION OR DOCUMENT AND THE COURT MAY ON SUCH
AN APPLICATION MAKE SUCH ORDER FOR DISCLOSURE AS IT
THINKS FIT.”

SEC. 24, Chapter XVIII of R.A. No. 8293 is hereby amended by adding a new Section at the

end thereof to be denominated as Section 224A, to read as follows:

“SEC. 224A. PROTECTION OF EXISTING SUBJECT MATTER. - THE
PROTECTION PROVIDED UNDER PART IV OF THIS ACT SHALL ALSO
APPLY TO WORKS, SOUND RECORDINGS AND PERFORMANCES FIXED
IN SOUND RECORDINGS AND BROADCASTING IN EXISTENCE UPON
THE EFFECTIVITY OF THIS ACT, AND WHICH ARE THE SUBJECT OF
INTERNATIONAL CONVENTIONS, TREATIES OR AGREEMENTS TO
WHICH THE PHILIPPINES IS A PARTY, PROVIDED THAT ON SUCH
DATE THE WORK, SOUND RECORDING, OR PERFORMANCE FIXED IN
A SOUND RECORDING HAS NOT YET FALLEN INTO THE PUBLIC
DOMAIN IN ITS COUNTRY OF ORIGIN OR IN THE PHILIPPINES
THROUGH THE EXPIRY OF THE TERM OF PROTECTION WHICH WAS
PREVIOUSLY GRANTED.”

SEC. 25. Section 226 of R.A. No. 8293 is hereby amended to read as follows:


Srwreorvaannron

W

13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28

“See. 226. Damages. - No damages may be recovered under this Act after THE
LAPSE OF four (4) years from the time the cause of action arose. (Sec. 58, P.D. No.
49y

SEC. 26. Chapter XX of R.A. No. 8293 is hereby amended by adding a new Section at the

end thereof to be denominated as Section 230, to read as follows:
“SEC. 230. ADOPTION OF INTELLECTUAL PROPERTY (IP) POLICIES. ~
SCHOOLS AND UNIVERSITIES SHALL ADOPT INTELLECTUAL
PROPERTY POLICIES THAT WOULD GOVERN THE USE AND
CREATION OF INTELLECTUAL PROPERTY WITH THE PURPOSE OF
SAFEGUARDING THE INTELLECTUAL CREATIONS OF THE LEARNING
INSTITUTION AND ITS EMPLOYEES, AND ADOPTING LOCALLY-
ESTABLISHED INDUSTRY PRACTICE FAIR USE GUIDELINES. THESE
POLICIES MAY BE DEVELOPED IN RELATION TO LICENSING
AGREEMENTS ENTERED INTO BY THE LEARNING INSTITUTION WITH.
A COLLECTIVE LICENSING ORGANIZATION.”

SEC. 27. Section 230 of R.A. No. 8293 is hereby renumbered as Section 231, and all

succeeding sections of the same Act are hereby renumbered accordingly.

SEC. 28, Implementing Rules and Regulations, - Within one hundred eighty (180) days

from the effectivity of this Act, the Intellectual Property Office, in consultation with the

National Book Development Board, the National Library, the Supreme Court Library and

other relevant agencies, shall promulgate the rules and regulations necessary to effectively

implement the provisions of this Act.

SEC. 29. Repealing Clause, ~ All laws, decrees, executive orders, issuances or regulations

inconsistent with the provisions of this Act are hereby revised or amended accordingly.

SEC. 30. Separability Clause. If any part of this law is declared unconstitutional or invalid,

such parts or provisions thereof not so declared shall remain valid and subsisting,

SEC. 31. Effectivity Clause. ~ This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation.

Approved,

16


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH (15") CONGRESS
First Regular Session

MINUTES OF THE MEETING OF THE COMMITTEE ON TRADE &
INDUSTRY HELD ON 23 NOVEMBER 2010 AT CONFERENCE ROOM
NOS. 9 & 10, RAMON VY. MITRA, JR. BUILDING, HOUSE OF
REPRESENTATIVES COMPLEX, BATASAN HILLS, QUEZON CITY

AGENDA:

Deliberation on the Draft Substitute Bill to HB Nos. 47, 267 & 2040 on:
Amending Certain Provisions of the R.A. No. 8293 Otherwise Known as the
Intellectual Property Code of the Philippines

L CALL TO ORDER

Rep. Albert S. Garcia, Chairman and Presiding Officer, called the meeting to
order at 2:00 pm.

I. ROLL CALL AND DETERMINATION OF QUORUM.

On proper motion, duly seconded and there being no objection, the Committee
dispensed with the Calling of the Roll.

Ill. APPROVAL OF THE MINUTES OF THE PREVIOUS MEETING

On proper motion, duly seconded and there being no objection, the Committee
dispensed with the reading of the Minutes of the Meeting held on 14 September 2010
and thereafter approved the same.

IV. OPENING REMARKS OF THE CHAIRMAN

Chairman Garcia welcomed and thanked the Committee Members and
resource persons who attended the meeting. He stated that the meeting was called for
to deliberate on the draft substitute bill to HB Nos. 47, 267 and 2040, all seeking to
amend provisions of the Intellectual Property Code of the Philippines. He underscored
that the passage of a bill enhancing protection of copyright owners is one of the
legislative priorities of the Committee under the present Congress.

Chairman Garcia explained further that HB Nos. 47, 267 and 2040, which
were collectively referred on First Reading to the Committee, were subsequently


passed on to a Technical Working Group (TWG) tasked to consolidate the salient
provisions of the three (3) bills. This is consistent with the decision reached by the
Committee during its 14 September 2010 meeting that all re-filed measures approved
at the Plenary and Committee levels during the Fourteenth Congress, including the
bills amending the IP Code, be forwarded directly to a TWG.

Chairman Garcia also clarified that the basic issues conceming these measures
have been unchanged since the previous congress, and have already been extensively
deliberated upon. Comments and suggestions of various stakeholders have also been

taken into account.

‘The Chairman recognized Rep. Joel Roy Duavit, Committee Vice Chairman
and Subcommittee Chairman of the Intellectual Property Rights & Other Concerns
Oversight, to formally submit the draft substitute bill amending the IP code (prepared
by the Technical Working Group) and to discuss its features.

v. DELIBERATIONS ON THE DRAFT SUBSTITUTE BILL TO HB Nos.
47, 267 and 2040.

Rep. Duavit stated that the TWG worked on the consolidation of HB Nos. 47,
267 and 2040, taking into consideration the provisions of the substitute bill on the
same subject matter which was approved by the Committee during the Fourteenth
Congress ( HB 6938 under Committee Report No. 2457).

He discussed the salient provisions of the draft substitute bill as follows:

* Establishment of a Bureau of Copyright dedicated to serving the needs of the
copyright-based industries and stakeholders;

* Compliance with the World Intellectual Property Organization Internet
Treaties by incorporating the provisions on the protection of technological
measures and rights management information;

+ Regulation of Collective Management Organization (CMO) to monitor and
promote good governance among CMOs;

* Special consideration for the visually impaired by giving a special fair use
exemption for the non-commercial reproduction of works for use by visually
impaired persons; and

* Clarification of the consequences of copyright infringement.

___ Consequently, Rep. Duavit moved for the approval of the draft substitute bill,
which was duly seconded by Rep. Rufus Rodriguez. There being no objection, the
Committee approved the substitute bill.

Chairman Garcia then directed the Secretariat to prepare the necessary
Committee Report and to expedite the submission of the same to the Committee on
Rules.


Vi. ADJOURNMENT

The meeting adjourned at 2:30 p.m.

Thereby certify to the correctness of the foregoing.

Prepared by:

i a be ubyne
SICA @. FRADPJAS
‘LSO Il
Committee on Trade & Industry

Certified Correct by:
Nes
VALENTINO R. PALANCA
ommittee Secretary

‘Committee on Trade & Industry
Noted by:
SGARCIA
iuifan,

“ommittee on Trade & Industry


FACT SHEET

ag4i
House Bill No__ 3844
(As Approved by the Committee on November 23, 2010)

AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293
ENTITLED “AN ACT PRESCRIBING THE INTELLECTUAL PROPERTY
CODE AND ESTABLISHING THE INTELLECTUAL PROPERTY OFFICE,
PROVIDING FOR ITS POWERS AND FUNCTIONS AND FOR OTHER
PURPOSES”

Introduced by: Rep. RUFUS B. RODRIGUEZ, Rep. MAXIMO B. RODRIGUEZ, Rep. JUAN
EDGARDO M. ANGARA, Rep. IRWIN C. TIENG, Rep. MARIANO MICHAEL M. VELARDE,
JR., Rep. ERICO B. AUMENTADO and Rep. BEN P. EVARDONE

Committee Referral: COMMITTEE ON TRADE & INDUSTRY
Committee Chairperson: REP. ALBERT RAYMOND S. GARCIA

OBJECTIVES:

* Seeks to amend the Intellectual Property Code through the integration of
comprehensive, swift, efficient and adequate strategies designed to respond to
the criminal onslaught of internet piracy.

« Aims to give as much concern to the rights of performers, phonogram producers
and broadcasters in the same breath as those accorded authors of artistic and
literary works by acknowledging the right of such phonogram producers,
performers or broadcasters to control or be compensated for the various ways in
which their works are used or enjoyed by others.

* Aims to give the visually-impaired persons equal and timely access to
copyrighted printed materials without securing permission from copyright holders
to produce their materials

KEY PROVISIONS:

* Amends Section 6 of RA 8293, Organizational Structure of the Intellectual
Property Office to include the Bureau of Copyright among its Bureaus and
creates a new section providing for its functions;


‘Amends the definition of “communication to the public” or “communicate to the
public” to show the varied forms of communication to the public; and the
definition of reproduction to emphasize that even temporary or partial copies are
considered as reproduction;

Authorizes the Intellectual Property Office, as regards enforcement of economic
and moral rights of the copyright owners and their heirs, to establish an
accreditation system for Collective Management Organizations or similar entities;

Clarifies that to be considered fair use, decompilation should be “indispensable in
order to obtain the information necessary to achieve such interoperability”;

Exempts from infringement those acts of reproduction or distribution of copies of
published articles/materials provided that such copies are:

(1) reproduced or distributed in a specialized format exclusively for the use
of the blind, visually - and reading - impaired persons;

(2) made on a non-profit or non-commercial basis;
(3) indicate the copyright owner and the date of first publication; and

(4) reproduced or distributed in a manner not in conflict with the normal

exploitation of the work and does not prejudice the normal exploitation
of the copyright owner.

Clarifies the definition of infringement by enumerating acts which constitute
infringement, including the concept of secondary liability (vicarious and
contributory infringement);

Creates a new section on “Disclosure of Information” to explain the disclosure
requirement for valid searches and seizures under this Act, and to provide the
copyright owner with notice in the event infringing articles violating his rights are
found so that appropriate actions may be taken to enforce his own right;

Considers circumvention of technological measures and the manipulation of

rights management information as aggravating circumstance to the crime of
copyright infringement.

RELATED LAWS:

Intellectual Property Code of the Philippines (Republic Act 8293)


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION: )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B, Rodriguez, Jr.

47

House Bill No.
EXPLANATORY NOTE

This bill was originally introduced as House Bill No. 3741 by the undersigned
Rufus B. Rodriguez during the Fourteenth Congress. It was approved by the
Committee on Trade and Industry as substitute House Bill No. 6938 under Committee
Report No. 2457, dated October 16, 2009.

The Constitution, in its Art. XIV Section 13 enjoins the State to “protect and
seoure the exclusive rights of scientists, inventors, artists and other gifted citizens to
their intellectual property and creation ...” In keeping with this fundamental mandate.
Congress, in 1977, passed the intellectual Property Code, Republic Act 8293, which
sought to provide protection to all forms of intellectual creation. The Philippines,
likewise, acceded to the Berne Convention which protects the property rights of artists
and writers; and as a member of the World Trade Organization, is enjoined to
recognize and protect intellectual creation expressed and distributed in the various
modes and channels invented by man.

Information and communications technologies have broken new ground with
the onset of a new channel for the dissemination of intellectual creation at high speed:
the internet. Undeniably, the emergence of the so-called digital revolution has
equipped mankind with a new empowerment, vastly expanded his knowledge and
broke barriers amongst countries and individuals in the delivery of information, thus
transforming the domains of information and communication into a borderless

universe in cyberspace,

Lamentably, however, this spectacular invention of man also bred a new and
awesome breed of pirates who utilize the same new technology in stealing intellectual
property and infringing intellectual property rights in cyber space. Reportedly, based
on the year-2000 figures, the software industry in the Philippines had lost about
$27.1 million or about P1.4 billion in revenues as a result of 2 61% piracy rate,
depriving the government of some P170 million in taxes, The sound-recording
industry estimated a piracy rate of 33% in the year 2000 with losses amounting to
$1.3 million or P65 million, while the entertainment software industry estimated a
piracy rate of 98% for the same year with losses amounting to $41 million or about P2
billion. Indeed, the threat to protected works assumes prime significance if one
considers the role of organized and syndicated crime in the commission of piracy in
the lanes of cyberspace. Pirated software in the form of illegal CDs, CD-ROMS,



DVDs and similar optic products are openly and brazenly sold at extremely low
prices. Copies of protected works are unmitigatedly downloaded in interactive
networks or uploaded unto internet servers without the consent of their owners or
rights holders. Property rights-violations swell by the day. Intellectual theft has
reputedly become a lucrative and thriving industry in the country today, presumably
because of the growing vigilance of many Asian countries over software piracy in
their own domains. This allegedly has encouraged pirates to bring their business to
the Philippines which presumably offers a less hostile environment to intellectual

thievery.

While our intellectual Property Code (Code) was conceived with consummate
vision at the time of its enactment, its provisions however have not kept pace with the
awesome advances made in the area of intellectual rights-infringement in electronic
commerce. While the marvel of digital technology has undoubtedly improved the
quality of life and simplified the conduct of business and trade by a simple computer
command, this same wonder has also been exploited for the pursuit of covert
operations and profitable opportunities for intellectual theft and infringement.

Given these staggering realities, the stage is now set to retool the prevailing
law by sharpening its focus, enlarging its protective coverage and reinforcing its
potency to provide meaningful relief to victims of intellectual thievery and to
strengthen current legal mandates to meet the challenges posted by new digital
technologies thus hopefully averting the dangers proffered by the electronic
environment,

This bill therefore seeks to amend the Code through the integration of
comprehensive, swift, efficient and adequate strategies designed to respond to the
criminal onslaught of Intemet piracy. At the same time, it seeks to give as much
concem to the rights of performers, phonogram producers and broadcasters in the
same breath as those accorded authors of artistic and literally works, by
acknowledging the right of such phonogram producers, performers or broadcasters to
control or be compensated for the various ways in which their works are used or
enjoyed by others. This measure also seeks to recognize rights to distribution and
rental, and rights to receive payments for certain forms of broadcasting or
communication to the public,

The Sponsor likewise believes that through these amendments, the country can
align itself with the breakthroughs made in intellectual property rights-protection by
providing certain safeguards to insure that rights-holders can likewise effectively use
technology to protect their own rights and to license their own works online,
especially when their creations are disseminated in the intemet, and by recognizing
the utilization of safeguards to prevent the deletion or alteration of information that
accompanies any protected material available only which identifies the work, its
creator, performer or owner, as well as the terms and conditions for the use of such
protected work. Furthermore, considering the speed and manner in which rights-
violations and infringements are committed in the internet over valuable contents of
stolen work, measures and legal options are, through these proposals, instituted in the
Code to insure swift and effective protection of the rights of owners of protected
Works against infringing activities committed either directly or indirectly in the
intemet, More stringent penalties are likewise recommended for rights-violators,


while immediate judicial relief and alternative options are proposed to be accorded
actual and potential victims of infringement who would sustain incalculable losses for
every minute that their works are used or exploited in the internet by infringers.

Concededly, the present Code was not and could not have been programmed
to address what its framers had not foreseen, but since it is a law intended to be the
guardian of intellectual property rights and the protector of the owners of such rights
for all time, it should seasonably craft policy in order to maintain and sustain the rule
of law in this new dimension of information technology and make intellectual
property protection more vigorous and meaningful.

It is the Sponsor's belief that a strong, militant and uncompromising
intellectual Property law would not only fight piracy, but would stimulate creativity,
spark individual talent, enkindle ingenuity, reward effort, protect science, safeguard
invention, promote the arts, invigorate the entertainment and broadcast industries,
accelerate the growth of electronic commerce, spur software development, energize
the economy and inspire inventor-confidence which the country sorely needs at this
time.

It is gratifying to note that the country abounds with talent, ingenuity and
creativity in the traditional and non-traditional fields of intellectual expression, For
this reason, the labors of the Filipino genius should not be held prey to, or be held
hostage by the pirates of commerce. It is time that the govemment eliminate, in
strong and unmistakable terms, this modem day-buccaneering and bring the country
to the global community of responsible governments.

Intellectual theft is not only morally wrong: it is an affliction that saps the
vitality of the legal order. For this reason, a firm, resolute and inexorable national
policy must now be articulated through these proposed amendments to the intellectual
Property Code, the passage of which amendments, I urge my esteemed colleagues in
this Chamber to support.

RUFUS B. iGUEZ

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

HOUSE OF REPRESENTATIVES
47

House Bill No.

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293
ENTITLED “AN ACT PRESCRIBING THE INTELLECTUAL
PROPERTY CODE AND ESTABLISHING THE INTELLECTUAL
PROPERTY OFFICE, PROVIDING FOR ITS POWERS AND
FUNCTIONS AND FOR OTHER PURPOSES”

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

SECTION 1. Section 6 of R.A. 8293, otherwise known as the
Intellectual Property Code of the Philippines is hereby amended to

read as follows:
Sec. 6. The Organizational Structure of the IPO. -
XxX
6.2 The Office shall be divided into seven (7) Bureaus, each of
which shall be headed by a Director and assisted by an

Assistant Director. These Bureaus are :

(a) The Bureau of Patents;

(b) The Bureau of Trademarks;


(c) The Bureau of Copyright;

(d) The Bureau of Legal Affairs;

(e) The Documentation Information and Technology
Transfer Bureau;

() The Management Information System and EDP
Bureau; and

{@) The Administrative, Financial and Personnel Services

Bureau

SEC. 2. Section 7 of R.A. No. 8293 is hereby amended to read

as follows:

Sec. 7. The Director General and Deputies Director General

(b) Exercise exclusive appellate jurisdiction over all decisions
rendered by the Director of Legal Affairs, the Director of Patents,
the Director of Trademarks, the Director of Copyright, and the
Director of the Documentation Information and Technology
Transfer Bureau. The decisions of the Director General in the
exercise of his appellate jurisdiction in respect of the decisions
of the Director of Patents, and the Director of Trademarks shall
be appealable to the Court of Appeals in accordance with the
Rules of Court; and those in respect of the decisions of the
Director of Documentation, Information and Technology
Transfer Bureau shall be appealable to the Secretary of Trade
and Industry; and

(c] Exercise Appellate jurisdiction over decisions made by the
Director of Copyrights over disputes relating to the terms of a
license involving the author's right to public performance or

other communication of his work. The decisions of the Director


General in these cases shall be appealable to the Secretary of

Trade and Industry.

SEC.3. A new Section 9A is hereby inserted after Section 9 Of

R.A. 8293, to read as follows:

Sec. 9A. The Bureau of Copyright shall have the Following

Functions:

9A. 1.

9A, 2.

9A. 3.

9A. 4.

9A. 5.

9A. 6.

Accept, review and decide on applications for the
accreditation of collective management organizations or
similar entities;

Conduct studies and researches in the field of copyright
and related rights in order to assist the Director General
in formulating policies on the administration and
management of copyright and related rights;

Exercise original jurisdiction to resolve disputes relating
to the terms of a license involving the author's right to
public performance or other communication of his work.
The decisions of the Director of Copyright in these cases
shall be appealable to the Director General;

Assist the Documentation, Information and Technology
Transfer Bureau (DITTB) in educating the public and
building awareness of copyright and related rights
through seminars, lectures and other similar activities;
Provide information to the Director General regarding
matters of copyright and related rights that require
publication in the IPO Gazette;

Coordinate with the National Library and the Supreme
Court Library for the maintenance of a database of
deposited works, assignments or exclusive licenses of
copyrighted works and other documents, particularly
those mentioned in Sections 182, 183, 191 and 198; and


9A.7. Coordinate with other government agencies and the
private sector efforts to formulate and implement plans
and policies to strengthen the protection of copyright
and related rights.

SEC. 4. Section 13.2 of R.A. No. 8293 is hereby amended to

read as follows:

13.2 The Patent, Trademark, and Copyright Administration
Services shall perform the following functions among

others:

(a) Maintain registers of assignments, mergings, licenses, and
bibliographic on patents, trademarks and copyright;
Provided, That nothing in this section shall be deemed to
amend Sec. 172.2 of Republic Act No. 8293;

(b) x ax

SEC. 5. Section 171.3 of R.A. No. 8293 is hereby amended to

read as follows:

Sec. 171. Definitions. - For the purpose of this Act, the

following terms have the following meaning:

171.3 “Communication to the public” or “communicate to the public”

means any communication to the public, including


broadcasting, rebroadcasting, vretransmitting by cable,
broadcasting and retransmitting by satellite, and includes the
making of a work available to the public by wire or wireless
means in such a way that members of the public may access
the works from a place and at a time individually chosen by

them;

SEC. 6. Section 171.9 of R.A. No. 8293 is hereby amended to

read as follows:

171.9. “Reproduction” is the making of one (1) or more
copies, temporary or permanent, in whole or in
part, of a work or sound recording in any manner or
form without prejudice to the provisions of Section
185 of this Act. (Sec. 41e, P.D. No. 49a);

SEC. 7. There shall be two new subsections to be added at the
end of Sec. 171.11. to be known as 171.12 and 171.13, both to read

as follows:

171,12. “Technological Measure” means any technology,
device or component that, in the normal course of
its operation, restricts access in respect of a work,
performance or sound recording, which are not
authorized by the authors, performers or producers
of sound recordings concerned or permitted by law.

171.13. ‘Rights © Management — Information” means
information which identifies the work, sound
recording or performance; The author of the work,
producer of the sound recording or performer of the

performance; the owner of any right in the work,


sound recording or performance; or information
about the terms and conditions of the use of the
work, sound recording or performance; and any
such numbers or codes that represent such
information, when any of these items is attached to
a copy of the work, sound recording or fixation of
performance or appears in conjunction with the
communication to the public of a work, sound

recording or performance.

SEC. 8. Section 180 of R.A. No. 8293 is hereby amended to read

as follows:

Sec. 180. Rights of Assignee or Licensee. ~

180. 1.

180. 2.

180. 4.

The copyright may be assigned or licensed in
whole or in part. Within the scope of the
assignment or license, the assignee or licensee .is
entitled to all the rights and remedies which the
assignor or licensor had with respect to the

copyright.

‘The copyright is not deemed assigned or licensed
inter vivos, in whole or in part, unless there is a
written indication of such intention.

Any exclusivity in the economic rights in a work
may be exclusively licensed. Within the scope of
the exclusive license, the licensee is entitled to all
the rights and remedies which the licensor had
with respect to the copyright.


180.5. The copyright owner has the right to regular
statements of accounts from the assignee or the
licensee with regard to assigned or licensed work.
The accounting shall be made in writing and shall
be given to the author at least once a year
accompanied by such information, including
books of accounts, contracts re-assigning his
rights to his work, and other such documents
that will help the author or copyright owner
determine the proper remuneration due him.

SEC. 9. Section 181 of R.A. No. 8293 is hereby amended to read

as follows:

Sec. 181. Copyright and Material Object. - The copyright is
distinct from the property in the material object subject to it.
Consequently, the transfer or assignment or licensing of the copyright
shall not itself constitute a transfer of the material object. Nor shall a
transfer or assignment of the sole copy or of one of several copies of
the work imply transfer or assignment or licensing of the copyright.
(Sec. 16, P.D. No. 49)

SEC. 10. Section 183 of R.A. No. 8293 is hereby amended to

read as follows:

Sec. 183. Designation of Society. - The copyright owners or their
heirs may designate a society of artists, writers, or composers to
enforce their economic rights or moral rights on their behalf. The
Intellectual Property Office of the Philippines shall establish an
accreditation system for collective management organizations or

similar entities. (Sec. 32, P.D. No. 49a)


SEC. 11. Section 185.1 of R.A. No. 8293 is hereby amended to

read as follows:

Sec. 185. Fair Used of a Copyrighted Work. - 185.1. The fair use
of a copyrighted work for criticism, comment, news, reporting,
teaching including multiple copies for classroom use, scholarship,
research, and similar purposes is not an infringement of copyright.
Decompilation, which is understood here to be the reproduction of the
code and translation of the forms of a computer program to achieve
the interoperability of an independently created computer program
with other programs may also constitute fair use under the criteria
established by this section, to the extent that such decompilation is
done for the purpose of obtaining the information necessary to achieve
such interoperability. In determining whether the use made of a work
in any particular case is fair use, the factors to be considered shall

include:
(a) ‘The purpose and character of the use, including
whether such use is of a commercial nature or is

for non-profit educational purposes;

(b) The nature of the copyrighted work;
() ‘The amount and substantiality of the portion used
in relation to the copyrighted work as a whole; and
(a) ‘The effect of the use upon the potential market for

or value of the copyrighted work.

It is also not an infringement of the copyrighted work to
reproduce or distribute copies of published articles or materials if
such copies are reproduced or distributed in a specialized format
exclusively for the use of the blind or visually impaired persons:
Provided, That such copies and distribution shall be made on a non-
profit basis and shall indicate the copyright owner and the date of the


original publication: Provided further, That such reproduction or
distribution is not in conflict with the normal exploitation of the
copyright owner. This distribution is also permitted in case the copies

have been made abroad and the conditions mentioned have been

fulfilled.

SEC. 12. Implementing Rules and Regulations on the
Reproduction or Distribution of Published Articles / Materials in
Specialized Format for the Blind or Visually Impaired. - Within
one hundred twenty (120) days from the effectivity of this Act, the
Intellectual Property Office, in consultation with the National Book
Development Board (NBDB), shall promulgate the rules and
regulations necessary to effectively implement the provisions of
Section 185.1, as amended.

SEC 13. Section 188.1 of R.A. No. 8293 is hereby amended to

read as follows:

Sec. 188. Reprographic Reproduction by Libraries. — 188.1
Notwithstanding the provisions of Subsection 177.1, any library or
archive whose activities are not for profit may, without the
authorization of the author or copyright owner, make a limited
number of copies of the work, as may be necessary for such

institutions to fulfill their mandate, by reprographic reproduction:

(c) Where the making of such limited copies is in order
to preserve and, if necessary in the event that it is
lost, destroyed or rendered unusable, replace a
copy, or to replace, in the permanent collection of
another similar library or archive, a copy which has


been lost, destroyed or rendered unusable and

copies are not available with the publisher.

SEC.14. Sections 190.1 and 190.2 of R.A. No. 8293 are deleted

in their entirety.

SEC. 15. Section 190.3 of R.A. No. 8293 is hereby renumbered
and amended as the sole provision under Section 190 to read as

follows:

Sec. 190. Importation and Exportation of Infringing Materials. -
Subject to the approval of the Secretary of Finance, the Commissioner
of Customs is hereby empowered to make rules and regulations for
preventing the importation or exportation of articles the importation
or exportation of which is prohibited under this Act and under treaties
and conventions to which the Philippines may be a party and for
seizing and condemning and disposing of the same in case they are
discovered after they have been imported or before they are exported.
(Sec. 30, P.D. No. 49)

SEC. 16. Section 191 of R.A. No. 8293 is hereby amended to

read as follows:

Sec. 191. Deposit and Notice of Deposit with the National Library
and the Supreme Court Library. - Within three (3) weeks after the first
public dissemination or performance by authority of the copyright
owner of a work falling under Subsections 172.1 (A), 172.1 (B), 172.1
(C}, and 173.1 of this Act, there shall, for the purpose of completing
the records of the National Library and the Supreme Court Library, be
registered and deposited with it by personal delivery or by registered
mail, two (2) complete copies or reproductions of the work in such
form as the directors of said libraries may prescribe in accordance
with regulations: Provided, That only works in the field of law shall be


deposited with the Supreme Court Library. A notice of deposit shall be
issued for which the prescribed fee shall be collected. (Sec. 26, P.D.

No. 49a)

SEC. 17 Section 198 of R.A. No. 8293 is hereby amended to

read as follows:

Sec. 198. Term of Moral Rights. - 198.1 The rights of an author
under this chapter shall last during the lifetime of the author and in
perpetuity after his death and shall not be assignable or subject to
license. The person or persons to be charged with the posthumous
enforcement of these rights shall be named in writing to be filed with
the National Library. In default of such person or persons, such
enforcement shall devolve upon either the author's heirs, and in
default of the heirs, the Director of the National Library.

SEC. 18. Section 208 of R.A. No. 8293 is hereby amended to

read as follows:

Sec. 208. Scope of Right. - Subject to the provisions of Section
212, producers of sound recordings shall enjoy the following exclusive

rights:

2081. The right to authorize the direct or indirect
reproduction of their sound recordings, in any
manner or form;

2082. The right to authorize the first public distribution of
the original and copies of their sound recordings
through sale or rental or other forms of transferring
ownership;

208 3 The right to authorize the commercial rental to the
public of the original and copies of their sound
recordings, even after distribution by them or


208 4,

pursuant to authorization by the producer; (Sec.

46, P.D. No. 49a) and
The right to authorize the making available to the

public of their sound recordings in such a way that
members of the public may access the sound
recording from a place and at a time individually
chosen or selected by them, as well as other

transmissions of a sound recording with like effect.

SEC. 19. Section 212 of R.A. No. 8293 is hereby amended to

read as follows:

Sec, 212. Limitations on Rights. - The provisions of Chapter VII

shall apply mutatis mutandis to the rights of performers, producers of

sound recordings and broadcasting organizations.

SEC. 20. Section 216 of R.A. No. 8293 is hereby amended to

read as follows:

Sec. 216. Infringement. - A person infringes a right protected

under this Act when he:

(A)

8)

(C)

Directly commits an infringement;

Benefits financially from the infringing activity of
another person who commits an infringement if the
person benefiting has been given notice of the
infringing activity and has the right and ability to
control the activities of the other person; or

Purposely and with intent to enable or induce
infringement by another person, and materially

contributes to it.


Sec. 216.1. Remedies for Infringement. - Any person infringing a
right protected under this law shall be Hable:

(b) To pay to the copyright proprietor or his assigns or heirs
such actual damages, including legal costs and other
expenses, as he may have incurred due to the
infringement as well as the profits the infringer may have
made due to such infringement, and in proving profits the
plaintiff shall be required to prove sales only and the
defendant shall be required to prove every element of
costs which he claims, or, in lieu of actual damages and
profits, such damages which to the court shall appear to
be just and shall not be regarded as penalty: Provided,
That in cases of the following, the amount of damages to
be awarded shall be double against any person who:

a. Circumvents effective technological measures} or

b. Having reasonable grounds to know that it will
induce, enable, facilitate or conceal the
infringement, remove or alter any electronic rights
management information from a copy of a work,
sound recording, or fixation of a performance or
distribute, import for distribution, broadcast, or
communicate to the public works or copies of works
without authority, knowing that electronic rights
management information has been removed or
altered without authority.


c. To deliver under oath, for impounding during the
pendency of the action, upon such terms and
conditions as the court may prescribe, sales
invoices and other documents evidencing sales, all
articles and their packaging alleged to infringe a
copyrightand implements for making them.

d. To deliver under oath for destruction without any
compensation all infringing copies or devices, as
well as plates, molds, or other means for making
such infringing copes as the court may order.

e. To such other terms and conditions, including the
payment of moral and exemplary damages, which
the court may deem proper, wise equitable and the
destruction of infringing copies of the work even in

the event of acquittal in a criminal case:

The copyright owner may elect, at any time before final

judgment is rendered, to recover instead of actual damages and

profits, an award of statutory damages for all infringements involved

in an action in a sum of not more than fifty thousand pesos (PHP 50,

000). In awarding statutory damages, the court shall consider the

following factors:

(a).

(2).

(3).

(4).

The nature and purpose of the infringing act such as
whether it was of a commercial nature;

The flagrancy of the infringement;

Whether the defendant acted in bad faith;

The need for deterrence;


(5). Any loss that the plaintiff has suffered or is likely to suffer

by reason of the infringement; and

(6). Any benefit shown to have accrued to the defendant by

reason of the infringement.

In case the infringer was not aware and had no reason to believe
that his/her acts constituted an infringement of copyright, the court
in its discretion may reduce the award of statutory damages to a sum

of not more the ten thousand pesos (PHP 10, 000.00).

216.2. In an infringement action, the court shall also have the
power to order the seizure and impounding of any article which may
serve as evidence in the court proceedings, in accordance with the
rules on search and seizure involving violations of intellectual
property rights issued by the Supreme Court. (Sec. 28, P.D. No. 49a)

The foregoing shall not preclude an independent suit for relief
by the injured party by way of damages, injunction, accounts or

otherwise.

SEC. 21. Section 217.2 of R.A. No, 8293 is hereby amended to

read as follows:

217.2. In determining the number of years of imprisonment and
the amount of fine, the court shall consider the value of the infringing
materials that the defendant has produced or manufactures and the
damage that the copyright owner has suffered by reason of the
infringement: Provided, That the maximum penalty stated in Sec,
217.1 (A), (B), and (C) for the first, second, third and subsequent
offense, respectively shall be imposed when the infringement is

committed by:


1.

mM.

SEC.

The circumvention of effective technological measures; or

The removal or alteration of any electronic rights
management information from a copy of a work, sound
recording, or fixation of a performance, by a person,
Knowingly and without authority; or

The distribution, importation for distribution, broadcast,
or communication to the public of works or copies of
works, by a person without authority, knowing that
electronic rights management information has been
removed or altered without authority.

22. Section 218.1 of R.A. No. 8293 is hereby amended to

read as follows:

Sec. 218. Affidavit Evidence. - 218.1. In an action under this
Chapter, an affidavit made before a notary public by or on behalf of
the owner of the copyright in any work or other subject matter and

stating that:

fa)

(b)

{c)

shall

At the time specified therein, copyright subsisted in the
work or other subject matter;

He or the person named therein is the owner of the
copyright; and

‘The copy of the work or other subject matter annexed
thereto is a true copy thereof;

be admitted in evidence in any proceeding under this

Chapter and shall be prima facie proof of the matters therein

stated until the contrary is proved, and the court before which


such affidavit is produced shall assume that the affidavit was

made by or on behalf of the owner of the copyright.

SEC.23. A new Section 220A shall be inserted after Section

220.2 of R.A. No. 8293 to read as follows;

Sec. 220A. Disclosure of Information. —

220A. 1.

220A. 2.

Where any article or its packaging or an implement
for making it is seized or detained under a valid
search and seizure under this Act is, or is
reasonably suspected by an authorized enforcement
officer to be in violation of this Act, the said officer
shall, wherever reasonably practicable, notify the
owner of the copyright in question or his authorized
agent of the seizure or detention, as the case may

be.

In the circumstances described in the previous
paragraph, an authorized enforcement officer may
disclose to the owner of the copyright or to his

authorized agent the following:

a, The time, and the address or place of seizure or detention

of the article;

b. The name.and address of the person from whom the
article had been seized or detained;

¢. The nature and quantity of articles seized or detained;

d. Any statement made to an authorized enforcement officer

by the person in connection with the seizure or detention,


either with the prior consent in writing of that person, or
without such consent where the person is dead or cannot
after reasonable enquiries by an authorized enforcement

officer as to his whereabouts be found

220A.3. The owner of the copyright or his authorized agent
seeking disclosure of any information or document

that is not referred to in the previous paragraph or
that is not disclosed by the authorized enforcement
officer may apply to the court for an order requiring
the said officer to disclose such information or
document and the court may on such an application
make such order for disclosure as it thinks fit.

SEC. 24. Chapter XVIII of R.A. No. 8293 is hereby amended by
adding a new Section at the end thereof to be denominated as Section

224A, to read as follows:
Sec. 224A. Protection of Existing Subject Matter.

224.1. The protection provided under Part IV of this Act shall
also apply to works, sound recordings and performances fixed in
sound recordings and broadcasting in existence upon the effectivity of
this Act, and which are the subject of International Conventions,
Treaties or Agreements to which the Philippines is a party, provided
that on such date the work, sound recording, or performance fixed in
a sound recording has not yet fallen into the public domain in its
country of origin or in the Philippines through the expiry of the term
of protection which was previously granted.

2244.2. Copies or works, sound recordings and performances
fixed in sound recordings that are newly protected solely as a result of
the application of this Section which are in existence upon the


effectivity of this Act may be sold or otherwise disposed of by the

owner of such copy until the expiration of three (3) months from the

date of effectivity of this Act.

224.3 No other exercise of exclusive rights under this Act with
respect to such work, sound recording or performance fixed in a
sound recording shall be permitted without the consent of the author
or other right holder of such work, sound recording or performance

fixed in a sound recording.

SEC.25. Section 226 of R.A. No. 8293 is hereby amended to

read as follows:

Sec. 226. Damages. - No damages may be recovered under this
‘Act after the lapse of four (4) years from the time the cause of action
arose. (Sec. 58, P.D. No. 49)

SEC. 26. Chapter XX of R.A. No. 8293 is hereby amended by
adding a new Section at the end thereof to be denominated as Section

230, to read as follows:

Sec. 230. Adoption of Intellectual Property (IP) Policies. - Schools
and universities are encouraged to adopt intellectual property policies
that would govern the use and creation of intellectual property with
the purpose of safeguarding the intellectual creations of the learning
institution and its employees, and adopting locally established
industry practice fair use guideline. These policies may be developed
in relation to licensing agreements entered into by the learning
institution with a collective licensing organization.

SEC. 27. Section 230 of R.A. 8239 is hereby renumbered
Section 231, and all succeeding sections of the same Act are hereby

renumbered accordingly.


All laws, decrees, executive

SEC. 28.Repealing Clause.
orders, issuances or regulations inconsistent with the provisions of

this Act are hereby revised or amended accordingly.

SEC. 29. Separability Clause. -- If any part of this law is
declared unconstitutional or invalid, such parts or provisions thereof

not so declared shall remain valid and subsisting.
SEC, 30. Effectivity Clause. - This Act shall take effect fifteen
(15) days after its publication in al least two (2) newspapers of general

circulation in the country.

Approved,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

267

ney
H. B. No.

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

Since 1980, the Philippines has been a member of the World Intellectual Property
Organization ("WIPO) which seeks "to promote the protection of intellectual property throughout
the world through cooperation among States."

Likewise, the Philippines is a signatory to other international treaties and conventions on
intellectual property rights, fo wit: 1) Convention Establishing the World intellectual Property
Organization [since 19801; 2) Paris Convention for the Protection of Industrial Property (since
1985]; 3) Budapest Treaty on the International Recognition of the Deposit of Microorganisms for
Purposes of Patent Procedure [since 1981}; 4) Berne Convention for the Protection of Literary
and Artistic [since 1951]; 5) International Convention for the Protection of Performers, Producers
of Phonographs and Broadcasting Organizations [since 1984]; and 6) Agreement on Trade-
Related Aspects of Intellectual Property Rights [since 1996]

Year 1998, in adherence to these international treaties for a universal or global
protection of intellectual property and in keeping with the Constitutional mandate enshrined in
Article XII, Section 13, which enjoins the State to “protect and secure the exclusive rights of
scientists, inventors, artists, and other gifted citizens to their intellectual property and creation,"
Congress passed Republic Act 8293 or the Intellectual Property Code (IPC) of the Philippines.

Four years after, or on 4 October 2002, the Philippines ratified two (2) additional treaties,
the WIPO Copyright Treaty (WWCT) and WIPO Performances and Phonograms Treaty (WPPT)
These treaties, commonly referred to as the “Internet Treaties,” were intended to modernize and
supplement the existing international treaties (Berne Convention and the Rome Convention) on
copyright. The treaties respond to critical issues formed by the introduction of digital
technologies, especially in the area of
dissemination of protected material over the internet.

While our IPC was shaped with a consummate vision at the time of its enactment, its
provisions have not kept pace with the advances made in the area of intellectual property rights
infringement in E-Commerce. Thus, with the Philippines’ ratification of the WCT and WPPT,
there is a need for amendments to the IPC to contain the additional obligations imposed by the
provisions in said treaties. More particularly, our laws must address two new issues: 1) the
technological measures provisions (Article 11 of the WCT and Article 18 of the WPPT), and 2)
the rights management information provisions (Article 12 of the WCT and WPP') of the Internet
Treaties.

‘This bill therefore seeks to amend the Code through the integration of comprehensive
and efficient strategies to respond to the upsurge of internet piracy. Also, it seeks to give
recognition to the rights of performers, phonogram producers and broadcasters as are accorded
authors of artistic and literally works, by acknowledging their right to contro! or be compensated
for the various ways in which their works are used or enjoyed by others. This measure also


seeks to recognize rights to distribution and rental, and rights to receive payments for certain
forms of broadcasting or communication to the public.

Indeed, through these amendments, Philippines is doing its share in providing
safeguards to insure that rights-holders can effectively use technology to protect their own rights
and to license their own works online. More stringent penalties are likewise recommended for
rights-violators, while immediate judicial relief and alternative options are proposed to be
accorded actual and potential victims of infringement who would sustain incalculable losses for
every minute that their works are used or exploited in the internet by infringers.

To sum, the overriding goal of this proposal is to provide an Internet environment where
it is safe to distribute and license protected material. Because in an increasingly global arena,
nothing less than a global effort will ensure the effective protection and development of
intellectual property.

For this, | urge my esteemed colleagues in the Chamber to support the immediate
passage of the bill

ss

t
JUAN < Parone IGARA

Representative
Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE —)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

OO4. B. No. 26'7

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293, OTHERWISE KNOWN
AS THE “THE INTELLECTUAL PROPERTY CODE
OF THE PHILIPPINES", AND FOR OTHER PURPOSES

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

SECTION 1. Section 171 of R.A. 8293 is hereby amended to read as follows:

“SEC. 174, Definitions. - For the purpose of this Act, the following terms have the

following meaning:
xxx

171.3 "Communication to the public” or “communicate to the pubic” is the making
of a work available to the public by wire or wireless means in such a way that
members of the public may access the works from a place and at a time
individually chosen by them, AND SHALL INCLUDE ANY COMMUNICATION TO.
THE PUBLIC, THROUGH BROADCASTING, REBROADCASTING,
RETRANSMITTING BY CABLE, BROADCASTING AND RETRANSMITTING BY
SATELLITE.

xxx :

171.9 “Reproduction” is the making of one (1) or more copies, TEMPORARY OR
PERMANENT, IN WHOLE OR IN PART, of a work or sound recording in any
manner or form.

Xxx

171.12 “EFFECTIVE TECHNOLOGICAL MEASURE” MEANS ANY TECHNOLOGY,
DEVICE OR COMPONENT THAT, IN THE NORMAL COURSE OF ITS
OPERATION, CONTROLS ACCESS TO A PROTECTED WORK, SOUND
RECORDING, OR OTHER SUBJECT MATTER, OR PROTECTS ANY
COPYRIGHT OR ANY RIGHTS RELATED TO COPYRIGHT AS PROVIDED BY
THIS ACT.

171,13 “RIGHTS MANAGEMENT INFORMATION” MEANS INFORMATION WHICH
IDENTIFIES THE WORK, SOUND RECORDING OR PERFORMANCE; THE
AUTHOR OF THE WORK, PRODUCER OF THE SOUND RECORDING OR
PERFORMER OF THE PERFORMANCE; THE OWNER OF ANY RIGHT IN.


SECTION, TO THE EXTENT THAT SUCH DECOMPILATION IS INDISPENSABLE IN
ORDER TO OBTAIN THE INFORMATION NECESSARY TO ACHIEVE SUCH INTER-
OPERABILITY. In determining whether the use made of a work in any particular case is
fair use, the factors to be considered shall include:”

SEC. 8. Section 188 is hereby amended to read as follows:

“SEC, 188, Reprographic Reproduction by Libraries. - 188.1 Notwithstanding
the provisions of Subsection 177.6, any library or archive whose activities are not for
profit may, without the authorization of the author of copyright owner, make a single copy
of the work by reprographic reproduction:

XXX
188.2 Notwithstanding the above provisions, it shall not be permissible to produce

a volume of work published in several volumes or to produce missing tomes
or pages of magazines or similar works, unless the volume, tome or part is
out of stock: Provicled, That every library which, UNDER SECTION 191, is
entitled to receive copies of a printed work, shall be entitled, when special
reasons so require, to reproduce a SINGLE REPROGRAPHIC copy of a
published work which is considered necessary for the collection of the library
but which is out of stock AND NOT REASONABLY AVAILABLE TO IT
THROUGH COMMERCIAL CHANNELS.”

SEC. 9. Section 190, Subsection 190.1 is hereby amended by striking "Subsection 177.6
lieu thereof, substituting "Subsection 177.3,” and by striking “Subsection 185.2” and in
lieu thereof, substituting “Subsection 184.2”, to read as follows:

and i

“490.1. Importation for Personal Purposes - Notwithstanding the provision of
Subsection [177.6] 177.3 but subject to the limitation under,the Subsection
[185.2] 184.2 the importation of a copy of a work by an individual for his personal
purposes shall be permitted without the authorization of the author of, or other
owner of copyright in, the work under the following circumstances:

(a) When copies of the work are not available in the Philippines and:

(i) Not more than one (1) copy at one time is imported by strictly individual
use only; or

(li) The importation is by authority of and for the use of the Philippine
Government; or

(ii) The importation, consisting of not more than three (3) such copies or
likenesses in any one invoice, is not for sale but for the use only of any
religious, charitable, or educational society or institution duly incorporated
or registered, or is for the encouragement of the fine arts, or for any state

school, college, university, or free public library in the Philippines,


(b) When such copies forms parts of libraries and personal baggage belonging to
persons or families arriving from foreign countries and are not intended for sale:
Provided, That such copies do not exceed three (3).

xxx
190.3. Subject to the approval of the Secretary of Finance, the Commissioner of

Customs is hereby empowered to make rules and regulations for preventing the

importation OR EXPORTATION OF INFRINGING ARTICLES OR of articles the

importation OR EXPORTATION of which is prohibited under this [Section] ACT
and under treaties and conventions to which the Philippines may be a party and
for seizing and condemning and disposing of the same in case they are
discovered after they have been imported OR BEFORE THEY ARE EXPORTED,
OR WHILE IN TRANSIT, THROUGH THE CUSTOMS TERRITORY OF THE
REPUBLIC OF THE PHILIPPINES.

SEC. 10. Section 191 is hereby amended by striking "Subsections 172.1, 172.2 and
172.3," and in lieu thereof, substituting “Subsections 172.\(a), (b) and (c)", to read as follows:

“SEC. 191. Registration and Deposit with National Library and the Supreme
Court Library. - After the first public dissemination of performance by authority of the
copyright owner of a work falling under Subsections [172.1, 172.2 and 172.31 172.l(a),
(b) and (¢) of this Act, there shall, for the purpose of completing the records of the
National Library and the Supreme Court Library, within three (3) weeks, be registered
and deposited with it, by personal delivery or by registered mail, two (2) complete copies
OF reproductions of the work in such form as the directors of said libraries may prescribe.
A certificate of deposit shall be issued for which the prescribed fee shall be collected and
the copyright owner shall be exempt from making additional deposit of the works with the
National Library and the Supreme Court Library under other laws. If, within three (3)
weeks after receipt by the copyright owner of a written demand from the directors for
such deposit, the required copies or reproductions are not delivered and the fee is not
paid, the copyright owner shall be liable to pay a fine equivalent to the required fee per
month of delay and to pay to the National Library and the Supreme Court Library the
amount of the retail price of the best edition of the work. Only the above mentioned
classes of work shall be accepted for deposit by the National Library and the Supreme
Court Library. (Sec. 26, P.D. No. 49a).

SEC. 11. Subsection 205.2 is hereby amended to read as follows:

“205.2. The provisions of Sections 184, [and Section] 185, AND 190 shall apply
mutatis mutandis to performers.”

SEC. 12. Section 208 is amended by amending subsection 208.1 and adding a new
subsection 208.4 and to read as follows:


“SEC. 208. Scope of Right. - Subject to the provisions of Section 212,
producers of sound recordings shall enjoy the following exclusive rights:

208.1 The right to authorize the direct or indirect reproduction of their sound
recordings, in any manner or form, TEMPORARY OR PERMANENT, the
placing of these reproductions in the market and the right of rental or
lending.

Xxx

208.4 THE RIGHT TO AUTHORIZE THE MAKING AVAILABLE TO THE PUBLIC
OF THEIR SOUND RECORDINGS IN SUCH A WAY THAT MEMBERS:
OF THE PUBLIC MAY ACCESS THE SOUND RECORDING FROM A
PLACE AND TIME, INDIVIDUALLY CHOSEN OR SELECTED BY THEM,
AS WELL AS OTHER TRANSMISSIONS OF A SOUND RECORDING
WITH LIKE EFFECT.

SEC. 13, Section 210 is hereby amended to read as follows:

“SEC. 210. Limitation of Right. - Sections 184, [and] 185, AND 190 shall apply
‘mutatis mutandis to the producer of sound recordings. (See. 48, P.D. No. 49a).”

SEC. 14. Section 212 is hereby amended to read as follows:

“SEC. 242. Limitations on Rights. - SUBJECT TO THE APPLICATION

MUTATIS MUTANDIS OF SECTION 184.2 OF THIS ACT, Sections 203, 208 and 209

shall not apply where the acts referred to in those Sections are [related to] CARRIED.

OUT IN CONNECTION WITH:

212. 4 The use by a natural person exclusively for his own personal purposes;

242.2 Using short excerpts for reporting current events;

212.3 Use solely for the purpose of teaching or for scientific research; and

212.4 Fair use of the broadcast subject to the condition under Section 185 (See. 44,
P.D. No. 49a).

SEC. 15. Section 216 of the same Act is hereby amended and renumbered to read as

follows:

“SEC 216. INFRINGEMENT, WHAT CONSTITUTES. - [Remedies for
Infringement}. A PERSON INFRINGES A RIGHT PROTECTED UNDER THIS ACT
WHEN HE OR SHE:

(a) DIRECTLY COMMITS AN INFRINGEMENT OR CAUSES AN INFRINGEMENT
TO BE COMMITTED:


(b) BENEFITS FINANCIALLY FROM THE INFRINGING ACTIVITY OF ANOTHER
PERSON WHO COMMITS AN INFRINGEMENT IF THE PERSON BENEFITING
HAS THE RIGHT AND ABILITY TO CONTROL THE ACTMTIES OF THE OTHER
PERSON; OR

(c) ENABLES OR INDUCES INFRINGEMENT BY ANOTHER PERSON ENABLING
OR INDUCING THE INFRINGEMENT WHICH HE HAS OR REASONABLY
SHOULD HAVE KNOWLEDGE OF AND MATERIALLY CONTRIBUTES TO IT.

SEC. 16. Section 216.1 is hereby amended as follows:

“SEC. 216.1 REMEDIES FOR INFRINGEMENT — Any person infringing a right

protected under this law shall be liable:
XXX

(0) TO [Plpay to the copyright proprietor or his assigns or heirs such actual
damages, including legal costs and other expenses, as he may have incurred
due to the infringement as well as the profits the infringer may have made due to
‘such infringement, and in proving profits the plaintiff shall be required to prove
‘sales only and the defendant shall be required to prove every element of cost
which he claims, or, in lieu of actual damages and profits, such damages which
to the court shall appear to be just AND WHICH IT FINDS TO BE SUFFICIENT
TO FULLY COMPENSATE THE RIGHT HOLDER FOR THE INJURY HE HAS.
SUFFERED, AND SUFFICIENT TO CONSTITUTE AS A DETERRENT TO.
FURTHER INFRINGEMENTS, and shall not be regarded as penalty,
Xxx

() THE COPYRIGHT OWNER MAY ELECT, AT ANY TIME BEFORE FINAL
JUDGMENT IS RENDERED, TO RECOVER AN AWARD OF STATUTORY
DAMAGES, INSTEAD OF ACTUAL DAMAGES AND PROFITS, FOR ALL
INFRINGEMENTS INVOLVED IN THE ACTION WITH RESPECT TO ANY ONE
WORK FOR WHICH AN INFRINGER IS LIABLE, AS THE COURT MAY
CONSIDER JUST. IN CASES WHERE THE COURT FINDS THAT THE
INFRINGEMENT WAS COMMITTED WILLFULLY, THE COURT, IN ITS
DISCRETION, MAY INCREASE THE AWARD OF STATUTORY DAMAGES.

SEC. 17. Subsection 216.2 is hereby amended by adding a proviso at the end of said
subsection, to read as follows’

“216.2 In an infringement action, the court shall also have the power to order the
seizure and impounding of any article which may serve as evidence in the court
proceedings: PROVIDED, HOWEVER, THAT:


(a) UPON APPLICATION OF THE HOLDER OF ANY RIGHT UNDER THIS ACT,
THE COURT MAY ORDER AS PROVISIONAL MEASURES, ANY OF THE
RELIEF IT IS AUTHORIZED TO AWARD UNDER THE PROVISIONS OF THIS
SECTION, EXCEPT FOR MONETARY DAMAGES, WITHOUT NOTICE TO THE
OTHER PARTY, WHEN THE COURT DEEMS IT NECESSARY TO PREVENT
AN INFRINGEMENT OF AN INTELLECTUAL PROPERTY RIGHT, OR TO
PRESERVE RELEVANT EVIDENCE OF ALLEGED INFRINGEMENT;

(b) SUCH RELIEF MAY INCLUDE, BUT IS NOT LIMITED TO, SEIZURE OR
IMPOUNDMENT OF INFRINGING COPIES OF EQUIPMENT WHICH CAN BE
USED TO MAKE INFRINGING COPIES OF BUSINESS RECORDS, AND OF
DOCUMENTARY EVIDENCE IN ANY FORM, INCLUDING ELECTRONIC
FORM;

(c) THE COURT MAY ORDER PROVISIONAL MEASURES WITHOUT NOTICE
TO THE OTHER PARTY WHEN IT DETERMINES THAT DELAY IS LIKELY TO
CAUSE IRREPARABLE HARM TO THE RIGHT HOLDER OR WHEN THERE IS
A DEMONSTRABLE RISK OF EVIDENCE BEING DESTROYED OR WHEN
THE COURT OTHERWISE DEEMS IT APPROPRIATE;

(a) | THE COURT MAY CONDITION THE AVAILABILITY OF PROVISIONAL
MEASURES UNDER THIS SECTION UPON SUFFICIENT SQOWING, BASED
ON REASONABLY AVAILABLE EVIDENCE, THAT THE APPLICANTS RIGHTS
HAVE BEEN OR ARE ABOUT TO BE INFRINGED, AND UPON SUBMISSION
TO THE COURT OF A SUFFICIENT SECURITY TO PROTECT THE OTHER
PARTY AND TO PREVENT ABUSE;

(@) UPON REQUEST BY THE OTHER PARTY, THE PROVISIONAL MEASURES.
SHALL CEASE TO HAVE EFFECT IF PROCEEDINGS LEADING TO DECISION
ON THE MERITS ARE NOT INITIATED BY OR ON BEHALF OF THE
APPLICANT WITHIN TWENTY (20) WORKING DAYS OR THIRTY-ONE (31)
CALENDAR DAYS, FROM THE DATE OF IMPOSITION OF THE
PROVISIONAL MEASURES, WHICHEVER IS LONGER, OR WITHIN SUCH
OTHER REASONABLE PERIOD AS THE COURT MAY DETERMINE; AND

() THE FOREGOING SHALL NOT PRECLUDE AN INDEPENDENT SUIT FOR
RELIEF BY THE INJURED PARTY BY WAY OF DAMAGES, INJUNCTION,
ACCOUNTS, OR OTHERWISE.

SEC. 18. Subsections 217.3 (b) and (c) are hereby amended to read as follows:


“SEC. 217.3 Any person who, at the time when copyright subsists in a work, has
in his possession an article which he knows, or ought to know, to be infringing copy of
the work for the purpose of:

XXX

(b) Distributing, INCLUDING IMPORTING OR EXPORTING the article, for
purpose of trade or for any other purpose to an extent that will prejudice
the rights of the copyright owner in the work or

(c) [Trade exhibit of the article] EXHIBITING THE WORK in public, OR

OTHERWISE USING THE ARTICLE FOR TRADE OR BUSINESS, shall
be guilty of an offense and shall be liable on conviction to imprisonment
and fine as above mentioned. (See 29, P.D. No. 49a).

SEC. 19, Subsection 218.I(c) is hereby amended to read as follows:

“SEC. 248, Affidavit Evidence - 218.1. In an action under this Chapter, an
affidavit made before a notary public by or on behalf of the owner of the copyright in any
work or other subject matter and stating that:
xxx
(c) The copy of the work or other subject matter annexed thereto is a true
copy thereof, shall be admitted in evidence in any proceedings {for an
offense] under this Chapter and shall be prima facie proof of the matters
therein stated until the contrary is proved, and the court before which
such affidavit is produced shall assume that the affidavit was made by or
on behalf of the owner of the copyright.”

SEC. 20. There shall be two new sections to be added at the end of Section 220.2 to be
known as Section 220A and 2208, to read as follows:

“SEC 220A, DISCLOSURE OF INFORMATION

220A.1. WHERE AN ARTICLE OR ITS PACKAGING OR AN IMPLEMENT FOR
MAKING IT IS SEIZED OR DETAINED UNDER THIS ACT, OR IS
REASONABLY SUSPECTED BY AN AUTHORIZED OFFICER TO BE IN
VIOLATION OF THIS ACT, THE AUTHORIZED OFFICER SHALL,
WHENEVER REASONABLY PRACTICABLE, NOTIFY THE OWNER OF THE
COPYRIGHT IN QUESTION OR HIS AUTHORIZED AGENT OF THE
SEIZURE OR DETENTION, AS THE CASE MAY BE.

220A.2.1N THE ABOVE-MENTIONED CIRCUMSTANCES, AN AUTHORIZED OFFICER
MAY DISCLOSE TO THE OWNER OF THE COPYRIGHT OR TO HIS
AUTHORIZED AGENT THE FOLLOWING:


(A) THE TIME AND PLACE, OF SEIZURE OR DETENTION OF THE
ARTICLE;

(8) THE NAME AND ADDRESS OF THE PERSON. FROM WHOM THE
ARTICLE HAS BEEN SEIZED OR DETAINED;

(C) THE NATURE AND QUANTITY OF ARTICLES SEIZED OR DETAINED;

(0) ANY STATEMENT MADE TO AN AUTHORIZED OFFICER BY THE
PERSON IN CONNECTION WITH THE SEIZURE OR DETENTION,
EITHER WITH THE PRIOR CONSENT IN WRITING OF THAT PERSON
OR WITHOUT SUCH CONSENT WHERE THE PERSON IS DEAD OR
CANNOT AFTER REASONABLE ENQUIRIES BY AN AUTHORIZED
OFFICER AS TO HIS WHERE-ABOUTS BE FOUND; AND.

(E) ANY OTHER INFORMATION OR DOCUMENT RELATING TO THE
ARTICLE SEIZED OR DETAINED WHICH AN AUTHORIZED OFFICER
DEEMS FIT TO DISCLOSE.

220A.3, THE OWNER OF THE COPYRIGHT OR HIS AUTHORIZED AGENT SEEKING
DISCLOSURE OF ANY INFORMATION OR DOCUMENT THAT IS NOT
REFERRED TO IN THE PREVIOUS PARAGRAPH OR THAT IS NOT
DISCLOSED BY THE AUTHORIZED OFFICER MAY APPLY TO THE COURT
FOR AN ORDER REQUIRING THE AUTHORIZED OFFICER TO DISCLOSE
SUCH INFORMATION OR DOCUMENT AND THE COURT MAY ON SUCH
AN APPLICATION MAKE SUCH ORDER FOR DISCLOSURE AS IT THINKS
FIT.

SEC 220B ACCEPTANCE OF PROPORTIONAL EXAMINATION OF ARTICLES
SEIZED.

220B.1.WHERE PACKAGES, RECEPTACLES OR CONTAINERS CONTAINING
COPIES OR IMPLEMENTS SUSPECTED OF VIOLATING THIS ACT ARE
SEIZED OR DETAINED, IT SHALL BE SUFFICIENT ONLY TO OPEN AND
EXAMINE THREE PERCENT (3%) OR ANY TEN (10) COPIES, WHICHEVER
IS HIGHER, OF THE CONTENTS OF EACH PACKAGE, RECEPTACLE OR
CONTAINER SEIZED.

220B.2.WHERE PROCEDURES WERE CARRIED OUT IN ACCORDANCE WITH THE
PREVIOUS PARAGRAPH, THE COURT SHALL PRESUME THAT THE
REMAINING COPIES CONTAINED IN THE PACKAGE OR RECEPTACLE ARE
OF THE SAME NATURE AS THOSE COPIES EXAMINED.”


SEC. 24. Chapter XVIII is hereby amended by adding a new Section at the end thereof
to be known as Section 224A. to read as follows:

“SECTION 224A, PROTECTION OF EXISTING SUBJECT MATTER:

(224A11.) THE PROTECTION PROVIDED UNDER PART IV OF THIS ACT SHALL
ALSO APPLY TO WORKS, SOUND RECORDINGS AND PERFORMANCES
FIXED IN SOUND RECORDINGS IN EXISTENCE UPON THE
EFFECTIVITY OF THIS ACT, AND WHICH ARE THE SUBJECT OF
INTERNATIONAL CONVENTIONS, TREATIES, OR AGREEMENTS TO
WHICH THE PHILIPPINES IS A PARTY, PROVIDED, HOWEVER, THAT ON
SUCH.DATE, THE WORK, SOUND RECORDING, OR PERFORMANCE
FIXED IN A SOUND RECORDING HAS NOT YET FALLEN INTO THE
PUBLIC DOMAIN IN ITS COUNTRY OF ORIGIN OR IN THE PHIPPINES
THROUGH THE EXPIRY OF THE TERM OF PROTECTION WHICH WAS.
PREVIOUSLY GRANTED.

(224A.2.) COPIES OF WORKS, SOUND RECORDINGS AND PERFORMANCES
FIXED IN SOUND RECORDINGS THAT ARE NEWLY PROTECTED
SOLELY AS A RESULT OF THE APPLICATION OF THIS SECTION WHICH
ARE IN EXISTENCE UPON THE EFFECTIVITY OF THIS ACT , MAY BE
SOLD OR OTHERWISE DISPOSED OF BY THE OWNER OF SUCH COPY
UNTIL THE EXPIRATION OF THREE (3) MONTHS FROM THE DATE OF
EFFECTIVITY OF THIS ACT.

(224A.3.) NO OTHER EXERCISE OF EXCLUSIVE RIGHTS UNDER THIS ACT WITH
RESPECT TO SUCH WORK, SOUND RECORDING, OR PERFORMANCE
FIXED IN A SOUND RECORDING SHALL BE PERMITTED WITHOUT THE
CONSENT OF THE AUTHOR OR OTHER RIGHTHOLDER OF SAID
WORK, SOUND RECORDING, OR PERFORMANCE FIXED IN A SOUND
RECORDING.”

SEC. 22. Part IV is hereby amended by adding a new Chapter at the end thereof to be
known as Chapter XXI, to read as follows:

"CHAPTER XXI, TECHNOLOGICAL PROTECTION MEASURES AND RIGHTS
MANAGEMENT INFORMATION

SECTION 229A TECHNOLOGICAL PROTECTION MEASURES

"1


2294.1. ANY PERSON WHO DOES EITHER OF THE FOLLOWING SHALL BE GUILTY

OF A CRIME, PUNISHABLE TO THE SAME EXTENT AS PROVIDED IN
SECTION 217.1(8) OF THIS ACT FOR THE FIRST OFFENSE, AND TO THE
SAME EXTENT AS PROVIDED IN SECTION 217.1(C) FOR THE SECOND
OR SUBSEQUENT OFFENSE, AND SHALL ALSO BE LIABLE UPON THE
SUIT OF ANY INJURED PARTY, TO A RELIEF, INCLUDING BUT NOT
LIMITED TO, DAMAGES, INJUNCTION, IMPOUNDMENT, AND
DESTRUCTION. THE REMEDIES PROVIDED IN SECTION 216 SHALL
APPLY, MUTATIS MUTANDIS, TO VIOLATIONS OF THIS SECTION:

(a) KNOWINGLY, OR HAVING REASONABLE GROUNDS TO KNOW,
CIRCUMWZNTS WITHOUT AUTHORITY ANY — EFFECTIVE
TECHNOLOGICAL MEASURE; OR

(b) | MANUFACTURES, IMPORTS, EXPORTS, DISTRIBUTES, OFFERS TO
THE PUBLIC, PROVIDES, OR OTHERWISE TRAFFICS IN DEVICES,
PRODUCTS OR COMPONENTS OR OFFERS TO THE PUBLIC OR
PROVIDES SERVICES:

() THAT ARE PROMOTED, ADVERTISED OR MARKETED FOR
THE PURPOSE OF CIRCUMVENTION OF ANY EFFECTIVE
TECHNOLOGICAL MEASURE; OR

(i) THAT HAVE ONLY A LIMITED COMMERCIALLY SIGNIFICANT
PURPOSE OR USE OTHER THAN TO CIRCUMVENT ANY
EFFECTIVE TECHNOLOGICAL MEASURE: OR

(ii) THAT ARE PRIMARILY DESIGNED, PRODUCED, ADAPTED OR
PERFORMEDFOR THE PURPOSE OF ENABLING OR
FACILITATING THE CIRCUMVENTION OF ANY EFFECTIVE
TECHNOLOGICAL MEASURE.

229A.2.THIS SECTION PROHIBITS CIRCUMVENTION OF TECHNOLOGICAL

MEASURES, AND DOES NOT REQUIRE AN AFFIRMATIVE RESPONSE TO
SUCH MEASURES. THIS SECTION DOES NOT REQUIRE THAT THE DESIGN
OF, OR THE DESIGN AND SELECTION OF PARTS AND COMPONENTS FOR
A CONSUMER ELECTRONICS, TELECOMMUNICATIONS OR COMPUTING
PRODUCT PROVIDE FOR A RESPONSE TO ANY PARTICULAR
TECHNOLOGICAL MEASURE. THIS PARAGRAPH DOES NOT PROVIDE A
DEFENSE TO A CLAIM OF VIOLATION OF PARAGRAPH (1)(8).


2298.3, A VIOLATION OF THIS SECTION IS INDEPENDENT OF ANY
INFRINGEMENT THAT MIGHT OCCUR UNDER THIS ACT.

SECTION 229B INTEGRITY OF RIGHTS MANAGEMENT INFORMATION

ANY PERSON WHO DOES EITHER OF THE FOLLOWING SHALL BE GUILTY
OF A CRIME, PUNISHABLE TO THE SAME EXTENT AS PROVIDED IN SECTION
217.1 OF THIS ACT, AND SHALL ALSO BE LIABLE UPON THE SUIT OF ANY
INJURED PARTY, TO RELIEF BY WAY OF DAMAGES, INJUNCTION,
IMPOUNDMENT, DESTRUCTION OR OTHERWISE, AND THE REMEDIES
PROVIDED IN SECTION 216 SHALL APPLY, MUTATIS MUTANDIS, TO VIOLATIONS
OF THIS SECTION

(a) KNOWINGLY AND WITHOUT AUTHORITY REMOVES OR ALTERS ANY
ELECTRONIC RIGHTS MANAGEMENT INFORMATION FROM A COPY OF A
WORK, SOUND RECORDING, OR FIXATION OF A PERFORMANCE, OR
KNOWINGLY AND WITHOUT AUTHORITY DISTRIBUTES, IMPORTS FOR
DISTRIBUTION, BROADCASTS, COMMUNICATES OR MAKES AVAILABLE
TO THE PUBLIC COPIES OF WORKS, SOUND RECORDINGS, OR
FIXATIONS OF PERFORM-ANCES FROM WHICH ELECTRONIC RIGHTS
MANAGEMENT INFORMATION HAS BEEN REMOVED; OR

(b) ALTERS ELECTRONIC RIGHTS MANAGEMENT INFORMATION WITHOUT
AUTHORITY, KNOWING OR (WITH RESPECT TO CIVIL REMEDIES) HAVING
REASONABLE GROUNDS TO KNOW THAT SUCH ACTIVITY WILL ENABLE
OR FACILITATE AN INFRINGEMENT OF ANY RIGHT PROTECTED UNDER
THIS LAW."

SEC, 23. All laws, decrees, executive orders, issuances or regulations inconsistent with
the provisions of this Act are hereby revised or amended accordingly

SEC. 24. If any part of this law is declared unconstitutional or invalid, such parts or
provisions thereof not so declared shall remain valid and subsisting.

SEC. 25. This Act shall take effect fifteen (15) days from publication in two (2)
newspapers of general circulation in the country.

Approved,

13


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

2040

House Bill No._ “©

Introduced by HON. IRWIN C. TIENG
and HON. MARIANO MICHAEL M. VELARDE

EXPLANATORY NOTE

Arlicie XIV, Section 1 of the 1987 Constitution provides that “The State shail protect and
promote the right of all citizens to qualily education at all levels and shall lake appropriate steps
{fo make them accessible to ail *. Further, Section 2 of the same Article upholds to establish,
maintain, and support a complete, adequate, and integrated system of education relevent to the
needs of the people and society.

For people who are visually-impaired, the inability to read print severely limits their
access to information of value for education, work and social integration that is readily available
to print readers, This puts them at a significant social and economic disadvantage, and hinders
their full inclusion in society. In effect, it renders them illiterate, when in fact, they may be very
well educated and fully literate,

The major obstacle encountered worldwide by accessitile media producers has been in
the long delays in securing permission from copyright holders to produce their materials in a
format accessible for the visually-impaired. Print material that is available to any sighted person
loday may take months or even longer before it can be provided in a format that a visually-
impaired person can read, By then, it may very wall be no longer relevant or useful

This bill seeks to grant exemption in the translation of printed materials into formats
accessible to the visually-impaired and for other purposes, thereby amending Section 185 of
Republic Act No. 8293 otherwise known as the “Intellectual Property Code of the Philippines’.
This would give visually-impaired persons equal and timely access to copyrighted print materials
thus, improving their educational and vocational levels. After all, there are a number of
countries who have ‘already passed similar measure to correct this unequal access to.printed
materials.

This proposed legislation if signed into law would permit production and distribution of
special format books and magazines for the visually impaired-without first obtaining a copyright
clearance from the appropriate bureau thereby expediting the early circulalion of the aforesaid
materials necessary for the use of visually-impaired persons.

\the light of the foregoing, early approval of this measure is earnestly sought.

TENG MARIANO MICHAEL M. VELARDE



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY

FIFTEENTH CONGRESS
First Regular Session

HousesiLno.__2040

Introduced by HON. IRWIN C. TIENG
and HON. MARIANO MICHAEL M. VELARDE

AN ACT
GRANTING EXEMPTIONS FROM SECURING PERMISSION FROM THE PUBLISHER
OR COPYRIGHT OWNER OF PRINTED MATERIALS TO REPRODUCE THE SAME
IN A SPECIALIZED FORMAT FOR THE EXCLUSIVE USE OF BLIND OR VISUALLY-
IMPAIRED INDIVIDUALS, AMENDING FOR THIS PURPOSE SECTION 185 OF
REPUBLIC ACT NO. 8293, OTHERWISE KNOWN AS THE “INTELLECTUAL
PROPERTY CODE OF THE PHILIPPINES ", AND FOR OTHER PURPOSES

Be enacted by the Senate and the House of Representatives in Congress
assembled, ‘

SECTION 1, - AMENDMENTS - Section 185 of Republic Act No. 8293 is héreby
amended by adding a new provision to read as follows:

“SECTION 185. Fair Use of Copyrighted Work. - 185.1. The fair use of a

copyrighted work for criticism, comment, news reporting, teaching iMeluding multiple
copies for classroom use, scholarship, research, and similar purposes is not an
infringement of copyright. IT IS NOT ALSO AN INFRINGEMENT OF THE
COPYRIGHTED WORK TO REPRODUCE OR DISTRIBUTE COPIES OF PUBLISHED
ARTICLES/MATERIALS IF SUCH COPIES ARE REPRODUCED OR DISTRIBUTED IN
A SPECIALIZED FORMAT EXCLUSIVELY FOR THE USE OF THE BLIND OR
VISUALLY IMPAIRED PERSONS PROVIDED, THAT SUCH COPIES AND
DISTRIBUTION SHALL BE MADE ON A NON-PROFIT BASIS AND SHALL INDICATE
THE COPYRIGHT OWNER AND THE DATE OF THE ORIGINAL PUBLICATION.
THIS DISTRIBUTION IS ALSO PERMITTED IN CASE THE COPIES HAVE BEEN
MADE ABROAD AND THE CONDITIONS MENTIONED ABOVE HAVE BEEN
FULFILLED.

Decompilation, which is understood here to be the reproduction of the code


and translation of the forms of the computer program with other program to achieve the
inter operability of an independently created computer program with other programs

may also constitute fair use, the factors to be considered shall include:

a) ‘The purpose and character of the use, including whether such use
is of a commercial nature; [or is for non- profit educational
purposes}

b) The nature of the copyrighted work;

c) The amount and substantially of the portion used in relation fe thé
copyrighted work as a whole;

d) The effect of the use upon the potential market for or value of the
copyrighted work."

SECTION 2. - LIMITATIONS- The provision of section 1 shall not apply to
standardized, secure, or norm- referenced tests and related testing materials, or to
computer programs, except the portions thereof that are conventional human language
{including descriptions of pictorial works) and displayed to users in the ordinary course
of using the computer programs,

SECTION 3. - DEFINITION OF TERMS.- For purposes of this Act, these terms
shall be defined as follows:

1. Blind or visually-impaired person means an individual who cannot read
printed materials due to low of lack.of vision.

2. Specialized format means braille, audio, large print, digital text or other
formats which enables the blind or visually-impaired person to read the print material

SECTION 4. - REPEALING CLAUSE.- All laws, executive orders, presidential -
decrees, rule’and regulations or any parts thereof which are inconsistent of this Act are
hereby repealed accordingly.

SECTION 5. - EFFECTIVITY - This Act shall take immediately upon its approval

Approved,


Republic of the Philippines
House of Representatives
Quezon City

Fifteenth Congress

First Regular Session

SIGNATURE OF THE MEMBERS OF THE
COMMITTEE ON TRADE AND INDUSTRY

, 424
COMMITTEE REPORT NO.

8841

Re: HOUSE BILL NO. entitled: “AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293
ENTITLED “AN ACT PRESCRIBING THE INTELLECTUAL
PROPERTY CODE AND ESTABLISHING THE INTELLECTUAL
PROPERTY OFFICE, PROVIDING FOR ITS POWERS AND
FUNCTIONS AND FOR OTHER PURPOSES”

VICE - CHAIR PERSONS: ah

Mi ;

Tomas V. Apacible

Joel Roy R. Duavit

Ferjenel G. Biron M.D.

Arthur R. Defensor, Jr.

Antonio C. Alvarez

Jerry P. Trefias



COMMITTEE REPORT NO. 421

Re: HOUSE BILL NO. 3844 entitled: “AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293
ENTITLED “AN ACT PRESCRIBING THE INTELLECTUAL
PROPERTY CODE AND ESTABLISHING THE INTELLECTUAL
PROPERTY OFFICE, PROVIDING FOR ITS POWERS AND
FUNCTIONS AND FOR OTHER PURPOSES”

FOR THE MAJORITY:
Rodel M. Batocabe
Ma, Theresa B. Bonoan-David
Mary Mitzi L. Cajayon
Teodoro A. Casifio.
Enrique M. Cojuangco
Neri J. Colmenares
Antonio Rafael G. Del Rosario
Wilftido Mark M. Enverga
Danilo Ramon S. Fernandez

Jeffrey P. Ferrer

Teodorico T. Haresco, Jr.

Florencio C. Garay Chen fe


COMMITTEE REPORT NO. fal

Re: HOUSE BILL NO. 38414 entitled: “AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293
ENTITLED “AN ACT PRESCRIBING THE INTELLECTUAL
PROPERTY CODE AND ESTABLISHING THE INTELLECTUAL

PROPERTY OFFICE, PROVIDING FOR ITS POWERS AND
FUNCTIONS AND FOR OTHER PURPOSES”

Ronald V. Singson a
Marcelino R. Teodoro hehe Torn.
Sherwin N. Tugna

Amel U. Ty

Peter M. Unabia

Mark A. Villar

Linabelle Ruth R. Villarica LO Maer

Victor J. Yu


COMMITTEE REPORT NO. 421

Re: HOUSE BILL NO. 3841 enitiea: “AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293
ENTITLED “AN ACT PRESCRIBING THE INTELLECTUAL
PROPERTY CODE AND ESTABLISHING THE INTELLECTUAL
PROPERTY OFFICE, PROVIDING FOR ITS POWERS AND
FUNCTIONS AND FOR OTHER PURPOSES”

Josefina M. Joson
Josephine Veronique R. Lacson-Noel
Antonio F. Lagdameo, Jr.

Hermilando I. Mandanas

Evelyn P, Mellana
lose
Tomas DR Osmefia
Pedro M. Pancho
Gabriel Luis R. Quisumbing

BA. A=

Isidro S. Rodriguez, Jr. * ier by
<

Rufus B. Rodriguez
Jesus N. Sacdalan
Nur-Ana I. Sahidulla

Raden C. Sakaluran



COMMITTEE REPORTNO. 42}

Re: HOUSE BILL NO. 3844 enitiea: “AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293
ENTITLED “AN ACT PRESCRIBING THE INTELLECTUAL
PROPERTY CODE AND ESTABLISHING THE INTELLECTUAL
PROPERTY OFFICE, PROVIDING FOR ITS POWERS AND
FUNCTIONS AND FOR OTHER PURPOSES”

FOR THE MINORITY:
Diosdado M. Arroyo
Aurelio D. Gonzales, Jr.
Lani Mercado-Revilla
Elmer E. Panotes,

Ferdinand Martin G. Romualdez