NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. No. 891
Senate
of ll)r ^:rrernr^»
'22 JUL26 P3:09
RECEIVLv'JY:
Introduced by SENATOR FRANCIS "TOL" N. TOLENTINO
AN ACT
AMENDING SECTION 177 AND SECTION 216 OF REPUBLIC ACT NO. 8293, 
OTHERWISE KNOWN AS THE "INTELLECTUAL PROPERTY CODE OF THE 
PHILIPPINES," AS AMENDED BY REPUBLIC ACT NO. 10372, AND FOR
OTHER PURPOSES
Explanatory Note
Under Article XIV, Section 13 of the 1987 Constitution, the State shall protect 
and secure the exclusive rights of scientists, inventors, artists, and other gifted citizens 
to their intellectual property and creations, particularly when beneficial to the people, 
for such period as provided under existing laws. To this end. Republic Act No. 8293, 
otherwise known as the "Intellectual Property Code of the Philippines", as amended 
by Republic Act No. 10372, was enacted to establish an effective intellectual and 
industrial property system recognized as vital to the development of domestic and 
creative activity, which facilitates the transfer of technology, attracts foreign 
investments, and ensures market access for our products. The said law further 
declares as a State policy the enhancement of the enforcement of intellectual property 
rights in the Philippines.
Similarly, the State recognizes the protection of intellectual property as an 
integral aspect of nation building. Being a signatory to international intellectual 
property laws and agreements, the State shall respect and abide by the parties of 
these international agreements and shall strive to provide adequate protection and 
enforcement of intellectual property rights. Notably, the Philippines is a state party to
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the Agreement on Trade-Related Aspects of Intellectual Property Rights (the "TRIPS 
Agreement") - an international agreement between all the member nations of the 
World Trade Organization (the "WTO"), which establishes minimum standards for the 
regulation of different forms of intellectual property. Under Article 10 of the TRIPS 
Agreement, computer programs, whether source or object code, shall be protected as 
literary works under the Berne Convention (1971). This provision confirms the 
obligation to protect computer programs under copyright.
Over the past few decades, technology has evolved rapidly and allowed users 
to freely upload and download information on the internet, including music, texts, and 
other works of art through linking, torrenting, and streaming, among others, which 
lead to the rampant violations of digital copyright infringement.
In the enforcement of the provisions of the Intellectual Property Code of the 
Philippines (the "IP Code") in relation to the Philippines' obligations as a state party to 
the TRIPS Agreement, the Supreme Court of the Philippines, in the case of NBI- 
Microsoft Corporation/ et aL v. Hwang, G.R. No. 147042 (2005), held that 
the copying of genuine Microsoft software to produce fake CD-ROMs and their 
distribution are in violation of Microsoft's copyright even if the copier or distributor is 
a Microsoft licensee. In this case, Hwang, et. al. contended that the CD-ROMs were 
left to them merely for safekeeping. The Supreme Court, however, found this 
reasoning untenable given the mass production of the CD-ROMs without securing 
Microsoft's prior authorization.
Further, secondary liability for copyright infringement has to be revisited in light 
of the increasing cases of online infringements and cybercrime issues. Section 22 of 
R.A. No. 10372 amended Section 216 of R.A. No. 8293 to expand copyright 
infringement liability not only to cover direct infringement but also third party 
infringement.
In ABS-CBNCorp. v. Gozon, G.R. No. 195956(2015), the Supreme Court 
held that "[kjnowledge of Infringement is only material when the person is charged of


aiding and abetting a copyright infringement under Section 217 of the Intellectual 
Property Code." The rampant use of Internet service providers (ISPs) and peer-to-peer 
(P2P) networks, however, present novel and more complex Issues on construing 
"aiding and abetting a copyright infringement" that give rise to copyright disputes.
In consonance with the foregoing legal developments, this measure seeks to 
amend the following Sections of the IP Code, as amended: ct) Section 177 to take into 
account rampant digital reproduction of copyrightable works; and b) Section 216 of 
the IP Code, as amended, to address increasing concerns on secondary liability and 
online copyright infringement issues, such as those related to P2P networks and ISPs. 
The Bill considers the right of copyright owners to prevent others from copying, 
uploading, scanning, digitizing or distributing their creative work. As such, it likewise 
amends existing laws on third party infringement and clarifies parameters for imposing 
secondary liability. In so doing, this measure will further the right of the copyright 
owner to determine how his or her work may be used which is well within such owner's 
right based on the IPC and treaties wherein the Philippines is currently a party to.
In view of the foregoing, the immediate passage of this Bill is earnestly sought.
TOL" N. TOLENTINO


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
s. No. 891
‘©fncp of rijc ^piTftnrj)
*22 JIJL26 P3:08
RI:C£IV;-DBV:
Introduced by Senator Francis "Tol" N. Tolentino
AN ACT
AMENDING SECTION 177 AND SECTION 216 OF REPUBLIC ACT NO. 8293, 
OTHERWISE KNOWN AS THE "INTELLECTUAL PROPERTY CODE OF THE 
PHILIPPINES/' AS AMENDED BY REPUBLIC ACT NO. 10372, AND FOR
OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Section 177 of Republic Act (R.A.) No. 8293 is hereby 
amended to read as follows:
"SECTION 177. Copyright or Economic Rights. - Subject to the 
provisions of Chapter VIII, copyright or economic rights shall 
consist of the exclusive right to carry out, authorize or prevent 
the following acts:
177.1. Reproduction of the work or substantial portion of the work
INCLUDING THE DIGITAL REPRODUCTION THEREOF, 
SUCH AS BUT NOT LIMITED TO THE FOLLOWING ACTS: 
COPYING AND PASTING OF TEXT OR ARTICLES, 
PHOTOCOPYING, UPLOADING OF MOVIES OR MUSIC 
ONLINE, COPYING A COMPUTER PROGRAM, SCANNING 
OR DIGITIZING PRINTED TEXT OR IMAGES INTO A 
DIGITAL FILE, OR RIGHT CLICKING A PHOTOGRAPH OR 
ITEM ONLINE AND SAVING IT IN A COMPUTER;


177.2. 
Dramatization, translation, adaptation, abridgment, 
arrangement or other transformation of the work;
177.3. The first public distribution of the original and each copy 
of the work by sale or other forms of DIGITAL DISTRIBUTION 
OR transfer of ownership;
X X X X
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177.6. Public performance of the work; [aftd^]
177.7. Other communication to the public of the work; AND
177.8 ANY OTHER UNAUTHORIZED USE OF THE 
COPYRIGHTED WORK DESPITE THE EXISTENCE OF A 
LICENSING AGREEMENT IF SUCH USE IS NOT INCLUDED 
IN SUCH AGREEMENT."
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SECTION 2. Section 216 of R.A. No. 8293, as amended by Section 22 of R.A.
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No. 10372, is hereby amended to read, thus:
"Sec. 216. Infringement - A person infringes a right protected 
under this Act when one: x x x
"[(c) With-knowledge of infringifig-activity-mduceG, causes or
materia I ly-contr-ibutes to the infringing-conduct of another].-
(C) SECONDARILY COMMITS AN INFRINGEMENT 
THROUGH VICARIOUS ACTS OR INTENTIONAL 
INDUCEMENT.
SECONDARY LIABILITY THROUGH VICARIOUS 
INFRINGEMENT IS COMMITTED WHEREBY THE 
OFFENDER HAD A RIGHT AND ABILITY TO SUPERVISE OR 
CONTROL THE INFRINGING ACTIVITY, AND HAS A 
DIRECT FINANCIAL INTEREST IN SUCH ACTIVITIES.


SECONDARY LIABILITY THROUGH INTENTIONAL 
INDUCEMENT IS COMMITTED WHEREBY THE OFFENDER 
WITH KNOWLEDGE OF INFRINGING ACTIVITY, 
INTENTIONALLY AIDS, ABETS, INDUCES, CAUSES, 
COMPELS, OR MATERIALLY CONTRIBUTES TO THE 
INFRINGING CONDUCT OF ANOTHER, WITH 
PURPOSEFUL INVOLVEMENT AND FINANCIAL GAIN AND 
WILL THUS BE LIABLE FOR DAMAGES."
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SECTION 3. Separability Clause. - If, for any reason, any part of provision of
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this act is declared invalid or unconstitutional, the remaining parts or provisions not
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affected shall remain in full force and effect.
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SECTION 4. Repealing Clause. - All other laws, executive orders, presidential
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decrees, rules and regulations inconsistent with the provisions of this act are hereby
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repealed, amended or modified accordingly.
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SECTION 5. Effectivity. - This Act shall take effect after fifteen (15) days
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following its complete publication in the Official Gazette or in at least one (1) national
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newspaper of general circulation.
Approved,