Trade and Industry Secretary Manuel Roxas II lamented the US decision to include the country again in the priority list of International Property Rights violators.
"The US decision was most unfair considering that the Philippines has been making major achievements in the protection and enforcement of IPR," Roxas said, adding that "the decision is also an uncalled for indictment of the new administration."
Three years ago, the status of the Philippines was upgraded by the US from the so-called priority Special 301 list of international violators to the ordinary watchlist after coming up with a law toughening up the IPR Code to eliminate piracy.
The decision to place the Philippines under the priority watchlist was announced by US Trade Representative Robert Zoellick.
In a statement, Zoellick said "the Philippines copyright enforcement is weak and has the potential of becoming a center of private optical media production in Asia given the doubling in the number of production lines for compact dics (CDs) and other optical media during the past year."
Roxas said the government had tried to convince Zoellick not to place the Philippines back in the priority watchlist and instead retain it under the ordinary watchlist.
"It is quite sad that the US government did not adequately recognize our country’s efforts at enforcing laws on IPR protection, while accepting hook, line and sinker the losses claimed by the International Intellectual Property Alliance (IIPA) due to IPR violations by the Philippines," Roxas said.
"Aside from the fact the Philippines is vigorously pursuing the implementation of IPR laws, the sanction the US may impose as authorized on their Section 301 (trade issues on general ) or Special 301 (IPR issues) has been de facto ruled illegal by the World Trade Organization (WTO)," he added.
The IIAP, a federation of US trade groups, claims that US companies have lost about $51 million in 1999 alone due to the country’s rampant selling and utilization of fake computer software. Furthermore, the IIAP also claims that US companies lost about $140 million in 1999 from copyright piracy.