In November 2024, the Motion Picture Association, (MPA), a non-profit organisation and an advocate for the film, television and streaming industries – whose members include major studios such as Disney, Netflix, Paramount Pictures, Prime Video & Amazon MGM Studios, Sony Pictures Entertainment, Universal City Studios and Warner Bros Discovery – released a study it commissioned titled “Consumer Risk from Piracy in the Philippines”. The findings of this study were presented during an anti-piracy symposium organised by the Intellectual Property Office of the Philippines (IPOPHL), the Alliance for Creativity and Entertainment, GMA Network and Globe Telecom.
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The study, authored by Paul Watters, cybercrime and cybersecurity professional and professor at Macquarie University in Sydney, Australia, reveals that Filipino consumers are 33 times more likely to encounter a cyber threat on popular piracy sites compared to legal film or TV websites. According to the 2024 YouGov consumer survey on piracy, the Philippines ranked second in the Asia-Pacific region for consumption of pirated content, behind only Vietnam.
Filipinos’ propensity for availing themselves of digital piracy services and platforms makes them especially susceptible to cyber threats such as malware and data theft. To mitigate the elevated cyber risks that Filipinos face, the study recommends the development of a national awareness and education campaign, increased funding for law enforcement in digital forensics and incident response, and the enactment of proportionate and transparent site-blocking laws that will target piracy sites and services.
The IPOPHL is closely co-operating with the MPA to curb the proliferation of piracy sites in the Philippines. Pursuant to copyright infringement complaints lodged by the MPA, the IP office has issued two requests to disable access to six domains, which host pirated versions of movies and TV shows owned by the film studios representing the MPA. In September 2023, the office also issued Memorandum Circular No. 2023-025 or the Rules on Voluntary Administrative Site Blocking, which enables internet service providers, acting on a request from the office, to block infringing websites and domains.
Digital piracy, which is the practice of illegally copying and selling digital music, video, computer software, etc., is considered a form of copyright infringement under the Intellectual Property Code. The Supreme Court defines copyright infringement as the act of doing anything, without the consent of the owner of the copyright, that the owner of the copyright has the exclusive right to do. Under section 177 of the IP Code, the owner of a copyrighted work has the exclusive right to carry out, authorise or prevent the reproduction of the work, or a substantial portion of it, and its distribution.
Jurisprudence states that copying alone is not what is prohibited in infringement cases, but whether the copying produces an “injurious effect”. Watters’ study emphasises the economic impact of digital piracy, particularly the revenue loss from potential earnings on legitimate sales and subscriptions of copyrighted matter. Digital piracy has a clear injurious effect on legitimate copyright owners, and there is a need for legal action.
Section 216 of the IP Code provides that an infringer shall be liable to an injunction restraining such infringement and to pay the copyright owner, their heirs, or assigns damages including the profits the infringer may have made due to such infringement. Under section 217, copyright infringement is punishable by at least one year of imprisonment and a minimum fine of PHP50,000 (USD870).
Over the years, congress has become increasingly aware of the need to give the IPOPHL more teeth in enforcing its mandate against infringement and piracy. Currently, five bills – House Bill 7600 and the Senate Bills 2150, 2385, 2645 and 2651 – seek to amend the IP Code and expand the IP office’s power to block infringing websites, gather intelligence and conduct investigations into pirated goods and content. As of this writing, these bills remain pending in congress.
With the increasing digitisation of media, consumers are more inclined to turn to illegitimate sources for content. However, this not only impacts the profits of creative industries but also threatens consumers’ online safety. It is hoped that the site-blocking bills gain more traction in congress to help address these concerns.
This article first appeared in BusinessWorld, a newspaper of general circulation in the Philippines. It is for general informational and educational purposes only and not offered as, and does not constitute, legal advice or legal opinion.
Razel Ann P Esteban is an associate in the IP department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).
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