Lunes, Mayo 26, 2014

THE PRACTICAL IMPLICATION OF THE AMENDMENT TO THE IPL CODE ESPECIALLY IN THE PERSPECTIVE OF THE AMENDMENTS IN THE RA 10372


INTRODUCTION

RA 8293, otherwise known as the Intellectual Property Code took effect on January 1, 1998. [i] Subsequently on February 28, 2013, President Aquino signed into law RA 10372, which amended certain provisions of RA 8293. This amendment had caught the attention of netizens, lawyers, writers, and even professors recognized as experts in their intellectual property field. Some were disappointed with the decision of the president in signing these amendments into a law. Some even asked for the repeal of the law due to unconstitutional issue. Some said the amendments were problematic and confusing.

“Netizens and lawyers on Wednesday said they were disappointed with President Benigno Aquino III for signing the “problematic” amendments to the Intellectual Property Code into law, leaving such issues as the expanded powers of the IP office unanswered.”[ii]

Democracy.Net.PH said, “It is regrettable enough that the President has signed into law the IP Code amendments, whose flaws have been pointed out by leading legal experts. It is even more regrettable that the President approved the law without any public indication that the arguments against the bill had been duly considered.” [iii]

Professor Disini, a UP College of Law professor said that the amendments introduced by RA 10372 violated some provisions of the Constitution.

“Disini said that a number of the amendments violate the due process clause, the right of citizens against unreasonable searches and seizures, and the equal protection clause as guaranteed by the constitution.”[iv]

The practical implication of the amendment to the IPL Code will be later discussed in this page. Amendments were actually introduced by RA 9150, RA 9502 and RA 10372. However, this page will focus on the amendments made by RA 10372. But before that, let as try to know the meaning of Intellectual Property.

The Intellectual Property (IP) refers to any creation or product of the human mind or intellect. It can be an invention, an original design, a practical application of a good idea, a mark of ownership such as trademark, literary and artistic works, among other things.[v]

Why is Intellectual Property so important? One reason is that intellectual property contributes enormously to our country’s economy. Small or big industries need it for the protection of their rights. Their ideas and works which are the source of their wealth and income are protected and they would greatly benefit from it.

Another reason is that artists become fully compensated for their artistic or literary works. They would be encouraged to do more and to share more their talents, ideas and other artistic works. These works would surely contribute positively to the country’s economy.

On the other hand, consumers or buyers are guaranteed that they purchase the genuine products and not paying for imitations or fake items. No one can imitate the trade name or trademark of another otherwise he would be held liable for infringement. Thus buyers are secured and safe in their transactions.

            Another question that should be dealt with is this: How to protect Intellectual Property? For an individual or industries- whether big or small- should learn how to keep their ideas or innovations a secret until they have filed a patent application. The artists, inventors and creators should remain vigilant against illegal selling, reproduction, copying, and distribution of items to protect their intellectual property.

The Philippine Government values the importance of intellectual property that’s why it had made several laws on intellectual property. Some of which is the Intellectual Property Code which was made effective on January 1, 1998. An amendment was made thereafter, the RA 10372 and was signed into law on February 28, 2013. Other amendments on RA 8293 was also made by other laws.

Furthermore, the Philippine Government also entered into treaties and other international agreements for the protection of rights and interest of every Filipino citizen.

But is amendment of RA 8293 really necessary? The answer to this question will be read in the Conclusion part. Let me first discuss more about this law and some of its amendments.

I learned in my Intellectual Property Law (IPL) class that the IP Code consists of four (4) parts:
(1)   The Intellectual Property Office
(2)   The Law on Patents
(3)   The Law on Trademarks, Servicemarks and Trade Names
(4)   The Law on Copyright
When my professor discussed the amendatory law, RA 10372, I noticed that amendments were made in part 1 (The Intellectual Property Office) and part 4 (The Law on Copyright). However, most of the amendments were made in part 4 (The Law on Copyright). Let us examine the changes introduced by this law.

AMENDMENTS INTRODUCED BY RA 10372

Importation
First, the law on importation in Section 190 of RA 8293 was amended by Sections 14 and 15 of RA 10372. The provisions of sections 190.1 and 190.2 were deleted and retained section 190.3. Sections 190.1 and 190.3 allow the importation of copyrighted material but with certain allowances. An individual may import one or even three copies depending on the circumstances.

When the Congress deleted these allowances, one could no longer bring more than one material to the Philippines. Thus, the rule is: only one. Reading from the lines of the amendatory law, the Bureau of Customs no longer has the right to allow importation of more than one material. This is because the Bureau has to abide by the rules and procedures of the law. To allow importation of more than one is illegal. It is against the law.

If that would be the case, information would be very expensive. Knowledge would be very hard to acquire it. It is very difficult to disseminate information from only one source. We cannot photocopy, copy or reproduce it. Otherwise, it will be an infringement case. Foreign authors should be the one to sell their work directly to the Philippines and thus, the expensive cost to pay.

Definition of Reproduction
Second, the definition of reproduction under section 171.9, RA 8293 was amended by Section 5, RA 10372.  The words ‘temporary or permanent’ was added in the definition[vi] which makes the law so tight and strict. This may also provide some problem since there is no distinction between ‘permanent’ or ‘temporary’.

Term of Moral Right
Third, the term of moral right was also revised. Under RA 8293, the rights of an author shall last during his lifetime and for fifty (50) years after his death. [vii] Under the new law, such right shall now last during the lifetime of the author and in perpetuity after his death. [viii] The term is now indefinite.

To explain further, the previous law implies that once a material becomes a public domain, there is no more moral right to speak of One’s name can be written therein and pretend to be the author. However, the new law does not allow so. Today, even the material becomes a public domain, the name of the author is still necessary to be written therein.

Powers of the Intellectual Property Office
Another amendment introduced by RA 10372 was the new powers of the Intellectual Property Office (IPO). This amendment was not under part 4 (The Law on Copyright) but under part 1 (The Intellectual Property Office) of the Intellectual Property Code. Section 2 (7D) of RA 10372 gave the power to the IPO to conduct visits during reasonable hours to establishments and businesses engaging in activities violating intellectual property rights and provisions of this act based on report, information or complaint received by the office.[ix] I am disturbed by this amendment. This practice is proscribed in our Constitution.

This violates the due process clause and the unreasonable searches and seizures guaranteed by our Constitution. As a rule, before authorities can enter a private place or search papers and effects therein, they must first show a valid search warrant. Warrants, at all times, must first be secured before any search, visit or investigation may be conducted. Otherwise, it is considered illegal. This is a rule in accordance with the rights and procedure guaranteed by the constitution.

The amendatory law seems not to have observed this right. Instead, the law gives the IPO Director General or Deputies Director General to seize the papers and effects of establishments and businesses engaging in activities violating the intellectual property rights even without a search warrant. This is clearly a violation of the constitution.

To quote the statement of Attorney Disini in a blog, he said:
 If you are a victim of copyright infringement, under the new law you can ask a government agency (the IPO) to enter a privately owned space in order to search, to look around.  
Let’s take another situation – let’s take the case of rape or murder. Let’s say you’re related to someone who was murdered. You know that certain evidence about the suspected murderer is located in a particular place. As a victim’s relative, you cannot just go to the place and enter. You need a warrant.

Why is it that Congress will give the victim of intellectual property rights violations more rights than the victim of heinous crimes? What about securing evidence against suspected terrorists? They need to get warrants.

But for suspected copyright infringements, authorities are allowed ”visits” which invade the privacy of alleged infringers. Are these crimes so terrible that we are willing to set aside constitutional principles? I think there’s a disconnect there.”[x]

“Disini is one of the legal experts who personally sent a memorandum to MalacaƱang due to the public outcry following the exposure of the law’s problematic provisions as laid down by blogger-journalist Raissa Robles.”[xi]

            Fair Use
There was also a change in the concept of Fair Use. RA 8293 states that 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, the reproduction of the code and translation of the forms of the computer program to achieve the inter-operability of an independently created computer program with other programs may also constitute fair use. [xii]

Under the new law, the word decompilation has a longer definition thus: “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.”[xiii]

The amendatory law can also be viewed positively in some ways. Additional rights are granted to some group of individuals. Such amendments were made to cope up with the changes brought about by the modern times.  Technological products or inventions are introduced in this modern times and it is just and fair enough that some technological words or changes be also inserted and observed in our law.

“The IP Code is put in place to protect the creative minds of the Filipinos who have endless innovative works. Further, amending the IP Code is a significant stride in the government’s fight against piracy. The IP Code does not only protect the outputs of the creators, but also safeguards the general public from pirated merchandise, which may be cheaper but may have harmful effects.”[xiv]

Scope of Performer’s Rights
Section 18 of RA 10372 also amended section 203 of RA 8293 with respect to the scope of performer’s rights, giving such performer’s right a wider scope. It now includes right as to audio-visual works and fixation as additional to those already provided in the previous law.

Rights of Producers of Sound Recordings
Section 20 of RA 10372 also provided additional right to producers of sound recordings aside from those already mentioned under Section 208 of RA 8792. The scope of section 208.4[xv] was an additional right conferred to such producers.

Infringement
Section 216 of RA 8293 was also amended by section 22 of Ra 10372. In the amendatory law, it provides the definition of infringement. This provision is really necessary because it had provided several acts which constitute infringement.

This would clearly define the act of infringement. There would be no more confusion as to what the word infringement really mean is. Before in the previous law, it had only provided for certain liabilities of an infringer but without definition or enumeration of acts which would constitute infringement.

Criminal Penalties
Amendments were also made on Section 217 of RA 8293 on criminal penalties. Maximum penalty shall be imposed when a certain act is committed by the three instances. [xvi]

CONCLUSION

Is amendment of RA 8293 really necessary? I don’t think so.

There is a need to harmonize intellectual property to the changing world due to technological advancement. But it seems that RA 10372 is too confusing and does not necessary solve the issues on this becoming technological advanced country.

Some people demand for the repeal of the law. There are various critics and opposition by renowned intellectual property educators. These should not be set aside. It must be taken into consideration.

I am not saying that RA 8293 is perfect but is better than RA 10372. The previous law is not confusing and it does not violate constitutional right.

I know that the new law only aims for the good and benefit of every citizen. In fact it was enacted to meet the needs of the changing society due to the introduction of modern technology. However, there are some loopholes and we cannot just hide it. It’s for real. The lawmakers should all take these comments, critics, and suggestions into account.




[i] Section 241, Intellectual Property Code
[ii] Tuazon, JM; “NEW LAW UNDER FIRE | Critics slam ‘problematic’ IP code amendments”; http://www.interaksyon.com/infotech/new-law-under-fire-critics-slam-problematic-ip-code-amendments; last retrieved: May 22, 2014
[iii] “Democracy.Net.PH Statement on the Signing of President Benigno S. Aquino III of RA 10372 (Amendments to IP Code)”; http://democracy.net.ph/democracy-net-ph-statement-on-the-signing-of-president-benigno-s-aquino-iii-of-ra-10372-amendments-to-ip-code/; last retrieved: May 22, 2014
[iv] http://www.interaksyon.com/infotech/new-law-under-fire-critics-slam-problematic-ip-code-amendments
[v]About Intellectual Property,  http://www.ipophil.gov.ph/index.php/ip-knowledge/about-intellectual-property; last retrieved: May 22, 2014
[vi] Section 5, RA 10372
[vii] Section 198, RA 8293
[viii] Section 17, RA 10372
[ix] Section 2, RA 10372
[x] Robles, Raissa; “Copyright owners have more rights than heinous crime victims with Congress’ IP Code changes – lawyers say”, http://raissarobles.com/2013/03/06/copyright-owners-have-more-rights-than-heinous-crime-victims-with-congress-ip-code-changes-lawyers-say/; last retrieved: May 22, 2014
[xi] Tuazon, JM; “NEW LAW UNDER FIRE | Critics slam ‘problematic’ IP code amendments”; http://www.interaksyon.com/infotech/new-law-under-fire-critics-slam-problematic-ip-code-amendments; last retrieved: May 22, 2014
[xii] Section 185.1, RA 8293
[xiii] Section 12, RA 10372
[xiv]   “RA 8293: Protecting the Intellectual Property in the Philippines”; http://ap.fftc.agnet.org/ap_db.php?id=94; last Retrieved, March 26, 2014
[xv] Section 208.4 provides:
            "SEC. 208. Scope of Right. – x x x
"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 at a time individually chosen or selected by them, as well as other transmissions of a sound recording with like effect."
[xvi] Section 23, RA 10372


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