Wednesday, May 28, 2014

ASEAN Integration on how it affects your Intellectual Property

No good case exists for the inequality of real and intellectual property, because no good case can exist for treating with special disfavour the work of the spirit and the mind.
– Larry Downes and Mark Helprin, 2009.
            INTELLECTUAL PROPERTY refers to creations of the mind: inventions; literary and artistic works; and symbols, names and images used in commerce. Intellectual property is divided into two categories: Industrial Property includes patents for inventions, trademarks, industrial designs and geographical indications. Copyright covers literary works (such as novels, poems and plays), films, music, artistic works (e.g., drawings, paintings, photographs and sculptures) and architectural design. Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and broadcasters in their radio and television programs. [1] Having any of these would give a person intellectual property rights that are analogous with any other rights the same may possess.
Not all people are familiar with intellectual properties, and they find it hard to differentiate each and every one from the other. But, this does not prevent the owners of such properties from appreciating the value of their properties. Thus, it does not bar the owner from protecting such properties from illegal use. For this reason, Intellectual Property Offices are established throughout the world with the help of the World Intellectual Property Organization (WIPO). With the help of this Organization, people all over the world would be encouraged to think of fresh ideas and get their creative juices flowing.
            The Intellectual Property Code of the Philippines is the Act that holds all the rules regarding Intellectual Property Law in the Philippines. Through the years, since its enactment, many provisions were amended because other countries, mainly the United States, placed the Philippines under their Priority Watch List. By changing some of the provisions of the Intellectual Property Code of the Philippines, the country went from Priority Watch List to the Ordinary Watch List with regard to its Intellectual Property Laws.
            Many provisions of the IP Code reproduce those of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs). It was introduced as a direct consequence of high levels of criticism from the United States – the Philippines’ main trading partner – with regard to the perceived laxity of the Philippines’ IP rights enforcement system. One important change was the institution of a provision treating ‘preparatory steps’ such as the reproduction of a registered mark on labels, prints, signs and advertisements as infringing acts. This enables mark owners to succeed in infringement actions even where the infringing products have not actually been sold. A provision in the copyright chapter allows an author to prove copyright ownership by mere affidavit evidence, which is treated as prima facie evidence of the facts stated, shifting the burden of proof onto the defendant. [2] It was evident that our Laws was still not spot-on, as a lot of questions with regard to Court rulings was still dubious to some countries.
Emerald Garment Manufacturing Corporation vs. Hon. Court of Appeals Case Summary
On 18 September 1981, private respondent H.D. Lee Co., Inc. filed with the Bureau of Patents, Trademarks & Technology Transfer (BPTTT) a Petition for Cancellation of Registration No. SR 5054 for the trademark "STYLISTIC MR. LEE" used on skirts, jeans, blouses, socks, briefs, jackets, jogging suits, dresses, shorts, shirts and lingerie under Class 25, issued on 27 October 1980 in the name of petitioner Emerald Garment Manufacturing Corporation.
Private respondent averred that petitioner's trademark "so closely resembled its own trademark, 'LEE' as previously registered and used in the Philippines cause confusion, mistake and deception on the part of the purchasing public as to the origin of the goods.
On 19 July 1988, the Director of Patents rendered a decision granting private respondent's petition for cancellation and opposition to registration. The Director of Patents, using the test of dominancy, declared that petitioner's trademark was confusingly similar to private respondent's mark because "it is the word 'Lee' which draws the attention of the buyer and leads him to conclude that the goods originated from the same manufacturer. It is undeniably the dominant feature of the mark.
  Whether or not a trademark causes confusion and is likely to deceive the public is a question of fact which is to be resolved by applying the "test of dominancy", meaning, if the competing trademark contains the main or essential or dominant features of another by reason of which confusion and deception are likely to result. 
The word "LEE" is the most prominent and distinctive feature of the appellant's trademark and all of the appellee's "LEE" trademarks. It is the mark which draws the attention of the buyer and leads him to conclude that the goods originated from the same manufacturer. The alleged difference is too insubstantial to be noticeable. The likelihood of confusion is further made more probable by the fact that both parties are engaged in the same line of business. 
Although the Court decided in favor of the respondent, the appellee has sufficiently established its right to prior use and registration of the trademark "LEE" in the Philippines and is thus entitled to protection from any infringement upon the same. The dissenting opinion of Justice Padilla is more acceptable. [3] 
This case raises doubts on the minds of foreign countries on whether or not the Philippine Law can defend trademarks from local imitators. The decision made only means that the Philippines is not primed to protect international copyrights and trademarks.
ASEAN Intellectual Property Rights Action Plan
            The AWGIPC has formulated the following five strategic goals that will serve as framework for its work in the next five years. The implementation of the activities and the achievement of deliverables identified under each of the five strategic goals will be monitored and regularly evaluated according to measurable performance indicators that will be agreed among AMSs.
Strategic Goal 1:
A balanced IP system that takes into account the varying levels of development of Member States and differences in institutional capacity of national IP Offices to enable them to deliver timely, quality, and accessible IP services to promote the region as being conducive to the needs of users and generators of IP.
This strategic goal focuses on registration, protection, and enforcement of IPRs and the programmes that will enable the region to provide simple and user-friendly protection frameworks, and improve the quality and accessibility of IP services.
Strategic Goal 2:
Developed national or regional legal and policy infrastructures that address evolving demands of the IP landscape and AMSs participate in global IP systems at the appropriate time.
ASEAN has attempted to formulate regional IP protection mechanisms. But given the diversity of their respective national laws, the growing demand for international, rather than regional, protection mechanisms from IP owners and creators worldwide, and the need for region to participate in global IP systems in order to be more competitive, the AWGIPC agreed on an alternative to the establishment of a regional IP System that will enable AMSs to move at their own pace.
Strategic Goal 3:
The interests of the region are advanced through systematic promotion for IP creation, awareness, and utilization to ensure that IP becomes a tool for innovation and development; support for the transfer of technology to promote access to knowledge; and with considerations for the preservation and protection of indigenous products and services and the works of their creative peoples in the region.
Efforts at raising IPR awareness in the region has remained generally low, although over several years, as a result of national and regional efforts at increasing IP awareness, the concept of IP has began to be recognized. This has resulted in more trademark filings by ASEAN nationals in the region, but patent filings remained low largely because the capacity for science and technology in the region has not changed much over the last several years.
Strategic Goal 4:
Active regional participation in the international IP community and with closer relationships with dialogue partners and institutions to develop the capacity of Member States and to address the needs of stakeholders in the region.
ASEAN needs to continue to participate in discussions in international fora, such as standing committees in the WIPO, and in bodies such as the World Trade Organization, in order to maintain not only national, but more importantly, regional presence and to help ASEAN find its voice in the international IP community. Espousing a common position on IP issues is increasingly becoming important in the light of the trend for regional cooperation programmes and agreements and the need for ASEAN to maximize the benefits, as a region, from these engagements. Having a single negotiating position is also important to preserve the needed flexibilities of Member States and to ensure that ASEAN does not commit to obligations that would pose difficulties for some Members.
Strategic Goal 5:
Intensified cooperation among AMSs and increased level of collaboration among them to enhance human and institutional capacity of IP Offices in the region.
Undertaking joint activities and intensifying cooperation, with or without the assistance of partners, will not only result in the success of ASEAN projects but will also build confidence in the capacity of AMSs to provide the assistance needed by other AMSs. Reliance on each other is key if ASEAN is to improve its capacity as a region, but without losing sight of the need to be part of the global IP system. [4]
            The goals herein stated by the ASEAN Intellectual Property Rights Action Plan for 2011-2015 will definitely help in the makeover of the regions Intellectual Property Laws. The plan is focused on the registration, protection and accessibility of the Intellectual Property for each country; that there should be a standard procedure and mechanism in dealing with Intellectual Property matters; there must be access for people to aware and informed with regard to Intellectual Property; that ASEAN must strengthen its partnership with other countries for a better future in Intellectual Property; and that there must be activities made between the countries involved intensifying cooperation and unity.
Anti-Piracy
            One of the main problems in our country today that is affecting the other countries as well is the rising online piracy in the Philippines. In an article written by Ben Arnold O. de Vera [6] he said that,
“Two US-based intellectual property (IP) lobby groups – the International Anti-Counterfeiting Coalition (IACC) and the International Intellectual Property Alliance (IIPA) — have raised concerns on the rising online piracy in the Philippines.
Besides online retailers, Quiapo, Greenhills and the Robinsons Wholesale Market remain piracy hotspots, IACC said, citing “large-scale trafficking” of counterfeit apparel, eyewear, fashion accessories, footwear, personal care products as well as industrial chemicals and consumer electronics in those markets.
“Rights-holders have long cited the inefficiency of the judiciary as a top concern and a contributing factor to the high cost of pursuing enforcement in the Philippines. We are aware of the implementation of special rules for IP proceedings, which are intended to improve the courts’ efficiency, and will be continuing to monitor whether those rules are having their intended effect,” IACC said.
“Given the breadth of industries affected, and the widespread availability of counterfeit goods in the retail market, the IACC recommends the Philippines’ continued inclusion on the Special 301 Watch List in 2014,” it said.
The USTR’s 2013 Special 301 Report on IPR has retained the Philippines on the watch list on the back of rising piracy over the Internet.
“The United States looks to the Philippines to take important steps to address piracy over the Internet, in particular with respect to notorious online markets,” last year’s report read.
“It remains important that the Philippine government work to fully legalize government software use and have procurement practices in place to pay for software. Republic Act 9184 must be implemented to ensure Philippine government agencies refrain from purchasing illegal software and allow only suppliers of legitimate software to participate in government bidding,” IIPA said, referring to the Government Procurement Reform Act.
Also, mobile device piracy is becoming a “more serious concern” in the Philippines, as the Optical Media Board (OMB) has no jurisdiction over such form of counterfeiting while mobile device repair shops have been increasingly doubling as “piracy portals,” according to IIPA.
“IIPA has noted in previous reports the significant increase in mobile penetration, and there are now increasing reports of infringing wireless application protocol (WAP) systems, which provide pirate content directly through wireless communications onto mobile phones/devices.
“In addition, vendors that sell and supposedly ‘repair’ mobile devices actually offer, either at the time of sale or afterwards, to download onto devices (including cell phones, tablets, mp3 players, hard disks, thumb/flash/USB drives) all kinds of infringing content,” it said. 
            Intellectual Property rights are essential in world trading today. The problems that we have with pirated goods have caused a troublesome contention between developing countries and the more advanced ones. The government of the advanced countries are more focused in the Intellectual Property Laws of countries like the Philippines, because they want to protect the rights they have with Intellectual Properties that belongs to them. Not only that, but the businesses of advanced countries are spending a lot of money trying to protect and develop products that they create. Businessmen want to get some profits out of the investment they make in inventing new products. But, a developing country like the Philippines, invest more in pirated products because of fear of putting money on improving the Laws that we have with regard to Intellectual Property.
Conclusion
            ASEAN continues to acknowledge the important role played by IP in social, technological, and economic progress and regional integration. With this ASEAN IPR Action Plan 2011-2015, the AWGIPC has designed a unique approach toward regional cooperation which takes into account different levels of capacity of the Member States in development and integration, balances access to IP and protection of IPRs, and responds to the current needs and anticipates future demands of the global IP system. [7]
            With the inclusion of ASEAN Integration, the Philippines will have a tighter and more organized way of facing the challenges with regard to Intellectual Property. The Intellectual Property system of the country will now be refined into a better one, and will erase any doubt on the minds of other countries on whether the Philippines is capable of deciding IP cases and have standardized regulations.
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[1] Intellectual property definition, available at, http://www.wipo.int/export/sites/www/freepublications/en/intproperty/450/wipo_pub_450.pdf, (last visited 27 May 2014)
[2] Vicente B. Amador (2007). Philippines Making Headway, available at, http://www.worldtrademarkreview.com/issues/Article.ashx?g=12a5892f-e617-42fb-9524-82d4fbfe865, (last visited 27 May 2014)
[3] Emerald Garment Manufacturing Corporation vs Hon. Court of Appeals, G.R. No. 100098, 29 December 1995, available at, http://www.lawphil.net/judjuris/juri1995/dec1995/gr_100098_1995.html, (last visited 27 May 2014)
[4] ASEAN Intellectual Property Rights Action Plan 2011-2015, available at, http://www.ecap-project.org/sites/default/files/IP_resources/ASEAN%20IPR%20Action%20Plan%202011-2015.pdf, (last visited 27 May 2014)
[5] Intellectual Property Code of the Philippines, available at, http://www.chanrobles.com/legal7intellectualpropertycodeofthephilippines.html#.U4XksfmSwaA, (last visited 27 May 2014)
[6] de Vera (2014), available at, http://newsbytes.ph/2014/02/11/2-us-anti-piracy-groups-slam-rising-online-piracy-in-ph/, (last visited 27 May 2014) 

[7] ASEAN Intellectual Property Rights Action Plan 2011-2015, available at, http://www.ecap-project.org/sites/default/files/IP_resources/ASEAN%20IPR%20Action%20Plan%202011-2015.pdf, (last visited 27 May 2014)

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