Philippine IP body warns of revenue loss due to online piracy

MANILA, Philippines – The Intellectual Property Office of the Philippines (IPOPHL) on Tuesday said online piracy has been causing revenue losses for the country, and that it would cost more if it remains unaddressed.

During the hearing of Committee on Trade, Commerce and Entrepreneurship on bills amending the Intellectual Property Code of the Philippines, IPOPHL Director General Atty. Rowel Barba cited a study conducted by Media Partners Asia on country's losses due to video piracy.

"In 2022, there were 20 million Filipinos who download from illegal sites and the loss was $781 million dollars [in the country] and if nothing will be done, by 2027, the illegal users will increase to 31 million and the leakage will be $1 billion, hindi pa po kasama 'yung taxes," Barba said when asked by Sen. Mark Villar, chairman of the committee, on the effects of piracy in creative industries.

Meanwhile, Globe vice president for legal policy Atty. Ariel Tubayan said that it also deprives the government of the necessary revenues "from the access that have foregone from consumption of pirated contents."

According to the Asia Video Industry Association, the Philippines has 70% incidence of piracy — second among the countries that have cases of piracy.

For his part, GMA legal counsel Atty. Allan Rafael has also raised alarm over the pay-per-view sites that have pirated contents of their television shows and ask viewers to provide credit card details for payment. 

"Some are offering pay-per-view also, similar to what Netflix is doing. I think this is where malware is being rampant because have to pay using credit cards," Rafael said.

He added that site blocking would have a "huge impact" on the adverse effects of the digital piracy that were being incurred by the creative industry.

In response, Villar said that the passage of Senate Bill Nos. (SBN) 2150 and 2385 would solve these issues on online piracy.

"Kung hindi natin ipapasa itong batas, kawawa 'yung mga stakeholders sa ating creative industry. Napakalaki ng nawawala sa kanila. Nababawasan ang kita nila, nasisira ang industry and of course hindi na natin alam kung saan napupunta 'yung revenues. Baka napupunta lang sa abroad, so nawawalan din tayo ng income," Villar said.