Philippine IT Laws and Policies

E-COMMERCE LAW (RA 8972)

 Title: Electronic Commerce Act of 2000
 Date: June 14, 2000
 an act providing for the recognition and use of electronic commercial and non-
commercial transactions and documents, penalties for unlawful use thereof, and
for other purposes.

OBJECTIVES – RA 8972
 aims to facilitate domestic and international dealings, transactions, arrangements
agreements, contracts and exchanges and storage of information through the
utilization of electronic, optical and similar medium, mode, instrumentality and
technology to recognize the authenticity and reliability of electronic documents
related to such activities and to promote the universal use of electronic
transaction in the government and general public.

SALIENT FEATURES OF E-COMMERCE LAW

 gives legal recognition of electronic data messages, electronic documents, and
electronic signatures. (section 6 to 13)
 allows the formation of contracts in electronic form. (section 16)
 makes banking transactions done through ATM switching networks absolute
once consummated. (section 16)
 parties are given the right to choose the type and level of security methods that
suit their needs. (section 24)
 provides the mandate for the electronic implementation of transport documents to
facilitate carriage of goods. This includes documents such as, but not limited to,
multimodal, airport, road, rail, inland waterway, courier, post receipts, transport
documents issued by freight forwarders, marine/ocean bill of lading, non-
negotiable seaway bill, charter party bill of lading. (section 25 and 26)
 mandates the government to have the capability to do e-commerce within 2
years or before June 19, 2002. (section 27)
 mandates RPWeb to be implemented.
RPWeb is a strategy that intends to connect all government offices to the
Internet and provide universal access to the general public.
The Department of Transportation and Communications, National
Telecommunications Commission, and National Computer Center will come up
with policies and rules that shall lead to substantial reduction of costs of
telecommunication and Internet facilities to ensure the implementation of
RPWeb. (section 28)
 made cable, broadcast, and wireless physical infrastructure within the activity of
telecommunications. (section 28)
 empowers the Department of Trade and Industry to supervise the development
of e-commerce in the country. It can also come up with policies and regulations,
when needed, to facilitate the growth of e-commerce. (section 29)
 provided guidelines as to when a service provider can be liable. (section 30)
 authorities and parties with the legal right can only gain access to electronic
documents, electronic data messages, and electronic signatures. For
confidentiality purposes, it shall not share or convey to any other person. (sec. 31 &
32)
 hacking or cracking, which refers to unauthorized access including the
introduction of computer viruses, is punishable by a fine from 100 thousand to
maximum commensurate to damage. With imprisonment from 6 months to 3
years. (sec. 33)
  piracy through the use of telecommunication networks, such as the Internet, that
infringes intellectual property rights is punishable. The penalties are the same as
hacking. (section 33)
 all existing laws such as the Consumer Act of the Philippines also applies to e-
commerce transactions. (section 33)

CYBERCRIME PENALTIES UNDER E-COMMERCE ACT (RA 8972)

 HACKING or CRACKING
- unauthorized access into or interference in a computer system/ server or
information and communication system
- any access in order to corrupt, alter, steal, or destroy using a computer
or other similar information and communication devices, without the
knowledge and consent of the owner of the computer or information and
communications system, including the introduction of computer viruses
and the like, resulting in the corruption, destruction, alteration, theft or loss
of electronic data messages or electronic document.
PENALTY:
Punished by a min. fine of P100,000.00 and a max. commensurate to the
damage incurred and a mandatory imprisonment of 6 months to 3 years.
 PIRACY
- the unauthorized copying, reproduction, dissemination, distribution,
importation, use, removal, alteration, substitution, modification, storage,
uploading, downloading, communication, making, available to the public,
or broadcasting of protected material, electronic signature or copyrighted
works including legally protected sound recording or phonograms or
information material on protected work, through the use of
telecommunication networks.
PENALTY:
Min. fine of P100,00.00 and a max. commensurate to the damage incurred
and a mandatory imprisonment of 6 months to 3 years.

OTHER VIOLATIONS IN E-COMMERCE LAW

-other violations of the provisions of this act. Example: Obligation of
Confidentiality, Lawful Access, etc.
PENALTY:
Max. penalty of 1M or 6 years imprisonment.

CONSUMER ACT AND ALL OTHER LAWS

-Republic Act N0. 7394 and other relevant or pertinent laws through transactions
covered by or using electronic data messages or electronic documents.
PENALTY:
Penalized with the same penalties as provided

INTELECTUAL PROPERTY CODE OF THE PHILIPPINES (RA 8293)

 Short Title: Intellectual Property Code of the Philippines
 Date Approved: June 6, 1997
 an Act prescribing the Intellectual Property Code and establishing the Intellectual
Property Office, providing for its powers and functions, and for other purposes.
 was signed by President Fidel V. Ramos on June 6: 1997, and took effect on
January 1: 1998.

DECLARATION OF STATE POLICY – RA 8293

 The State recognizes that an effective intellectual and industrial property system
is vital to the development of domestic and creative activity, facilitates transfer of
 technology, attracts foreign investments, and ensures market access for our
products. It shall protect and secure the exclusive rights of scientists, inventors,
artists and other gifted citizens to their intellectual property and creations,
particularly when beneficial to the people, for such periods as provided in this
Act.
 The use of intellectual property bears a social function. To this end, the State
shall promote the diffusion of knowledge and information for the promotion of
national development and progress and the common good.
 It is also the policy of the State to streamline administrative procedures of
registering patents, trademarks and copyright, to liberalize the registration on the
transfer of technology, and to enhance the enforcement of intellectual property
rights in the Philippines.

INTERNATIONAL CONVENTIONS AND RECIPROCITY – RA 8293

 Any person who is a national or who is domiciled or has a real and effective
industrial establishment in a country which is a party to any convention, treaty or
agreement relating to intellectual property rights or the repression of unfair
competition, to which the Philippines is also a party, or extends reciprocal rights
to nationals of the Philippines by law, shall be entitled to benefits to the extent
necessary to give effect to any provision of such convention, treaty or reciprocal
law, in addition to the rights to which any owner of an intellectual property right is
otherwise entitled by this Act.

What is Intellectual Property or ID?

 refers to any creation or product of the human mind or intellect.
 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.
The term intellectual property rights consist of:
1. Copyright and Related Rights 5. Patents
2. Trademarks and Service Marks 6. Layout-Design (Topographies) of ICs
3. Geographic Indications 7. Protection of Undisclosed Information
4. Industrial Designs (n, TRIPS)

Bureau of Patents, Trademarks, and Technology Transfer (BPTTT)

 under the Department of Trade and Industry (DTI).
 It is where all patent and trademark related activities were handled before the
Intellectual Property Office (IPO) was established.
 was created by virtue of Executive Order (E.O.) No. 133 (the law reorganizing the
DTI and its attached agencies), which was signed on February 27, 1987 by
President Corazon C. Aquino.
 was abolished by the IP Code.

Intellectual Property Office of the Philippines (IPOPHL)

 after 10 years, it was created by virtue of Republic Act (R.A.) No. 8293.
 The IPOPHL, one of the offices under the Office of the Secretary (OSEC) of the
DTI, leads the implementation of state policies (i.e. registration and conflict
resolution) on IP.
 has more functions than the BPTTT, which was abolished by the IP Code.
 is headed by a Director General and has six Bureaus; namely:
1. the Bureau of Patents
2. the Bureau of Trademarks
3. the Bureau of Legal Affairs
4. the Documentation, Information and Technology Transfer Bureau
5. the Management Information System and EDP Bureau
 6. the Administrative: Financial and Personnel Services Bureau.
On February 28: 2013, President Benigno S. Aquino III signed R.A. 10372: an act
amending certain provisions of R.A. 8239.
 Republic Act No. 10372 added the seventh bureau, the Bureau of Copyright and
Other Related Rights with the following functions.

Functions of IPOPHL
1. Exercise original jurisdiction to resolve disputes relating to the terms of a license
involving the author's right to public performance or other communication of his
work
2. Accept, review and decide on applications for the accreditation of collective
management organizations or similar entities
3. Conduct studies and researches in the field of copyright and related rights
4. Provide other copyright and related rights service and charge reasonable fees
therefor.

Coverage of the IP Code

The important provisions of the IP Code of the Philippines include among others
1. Laws on patents
2. Laws on trademarks, service marks and trade names
3. Laws on copyright.

What is a patent?
According to the IPOPHL:
 It is a grant given by the government to inventors/applicants in return for
disclosing an Invention.
 It is a legal right to exclusively exploit the invention for the life of the patent.
 The term of protection for a Patent is 20 years from the date of filing in the
Philippines, with no possibility of renewal.

What are the criteria to apply for a patent protection?

According to the IPOPHL:
To qualify for patent protection, an invention has to be applied to a product or process.
For an invention to be patentable, it should meet the three criteria:
1. it must be new
2. involves an inventive step
3. is industrially applicable

What is a Patentable Invention?

According to the IPOPHL:
 is any technical solution to a problem in any field of human activity which is new,
inventive, and useful.
 An Invention may relate to a product (e.g. machine, device, an article of
manufacture, a composition of matter, a microorganism), process or method,
(e.g. a method of use, method of manufacturing, a non-biological process, a
microbiological process), computer-related inventions, and improvement of any
of the foregoing.

The Law on Patents

 The salient provisions under law of patents stipulate the patentable inventions
and the right to a patent.
 It also has provisions on patent application, procedure for grant of patent,
cancellation of patents and substitution of patentee, remedies of a person with a
 right to a patent, rights of patentees and infringement of patents, voluntary
licensing, compulsory licensing, assignment and transmission of rights,
registration of utility models and industrial design, the qualifications in applying
for and the granting and cancellation of patents.
 The IP Code define patentable as any technical solution of a problem in any field
of human activity which is new, involves an inventive step and is industrially
applicable.
 It may include or relate to a product, a process, or an improvement of any of the
foregoing.
 The right to a patent belongs to the inventor, his heirs, or assigns. When two or
more persons have jointly made an invention, the right to patent shall belong to
them jointly.
 The exclusive right gives the inventor the right to exclude others from making,
using, or selling the product of his invention during the life of the patent.
 An important feature under the Right to Patent is the "First to File Rule" policy.
 This policy gives right to the patent to the person who had the earliest filing date,
in case two or more applications are filed for the same invention.
 This rule is critical since an inventor may lose his/her claim if he/she does not file
the patent at once.
 The term of patent shall be twenty (20) years from the filing date of the
application.

The Law on Trademarks, Service Marks and Trade Names

 A trademark is a tool used to differentiate goods and services from each other.
 Part III of the IP Code states that the rights in a mark shall be acquired through
registration made validly in accordance with the provisions of this law.
 The certificate of registration shall remain in force for ten 10 years and may be
renewed for periods of ten years at its expiration upon payment of the prescribed
fee and upon filing of a request.

The Law on Copyright

 Copyright is the legal protection extended to the owner of the rights in an original
work, which may refer to every production in the literary, scientific, and artistic
domain.
 Among the literary and artistic works enumerated in the IP Code are books, and
other writings, musical works, films, paintings and other works, and computer
programs (IPOPHL, 2013).
 Most of the amendments in R.A. 8293 as stated in R.A. 10372 or the revised IP
Code are on provisions pertaining to the Law on Copyright.
 The powers of the Director General and Deputy Director General were
broadened to include enforcement functions supported by concerned agencies
such as the Philippine National Police (PNP), the National Bureau of
Investigation (NBI), the Bureau of Customs (BOC), the Optical Media Board
(OMB), and the Local Government Units (LGUs), among others.
 This is a strategic move to intensify the government's fight against pirated
merchandise, protecting both the creators and the consumers
 Another section added, is on the Adoption of Intellectual Property Policies by
schools and universities to safeguard the intellectual creations of the learning
institutions and its employees.

OPTICAL MEDIA ACT OF 2003 (RA 9239)

 Title: Optical Media Act of 2003
 Date: February 10, 2004
 an act regulating optical media, reorganizing for this purpose the video gram
regulatory board, providing penalties therefor, and for other purposes.
RA 9239 - POLICY
 It is hereby declared to be the policy of the State to ensure the protection and
promotion of intellectual property rights.
 The unregulated mastering, manufacture, replication, importation and exportation
of optical media in all forms is inimical to economic growth and public interest.
Towards this end, the State shall institute the means to regulate the manufacture,
mastering, replication, importation and exportation of optical media.

Optical Media - a storage medium or device in which information, including sounds

and/or
images, or software code, has been stored, either by mastering and/or
replication, which may be accessed and read using a lens scanning
mechanism employing a high intensity light source such as a laser or
any
such other means as may be developed in the future. The term shall
include, but not be limited to, devices which shall be listed in the IRR of
this Act, or as prescribed by the Optical Media Board (OMB).

Magnetic Media - a storage medium or device characterized by a base, usually plastic,

coated with ferric oxide powder, in which visual and/or aural
information, or software code, may be recorded or stored, including,
but
not limited to, magnetic tape, cassettes, video tape, diskettes, and
floppy discs.

Manufacturing Equipment - any and all equipment, machine or device, now known or to
be known in the future, intended or designed for the
production or manufacture, by mastering and/or replication
of
optical media, optical media masters, or production parts
thereof, including but not limited to, those which shall be
listed
in the Implementing Rules and Regulations (IRR) of this Act
or as prescribed by the OMB. For the purpose of this Act,
optical disc writers and such other devices used in personal
computers not for commercial purposes shall not be
considered as manufacturing equipment.

Manufacturing Material - any material such as, but not limited to, optical grade
polycarbonate or polycarbonate substitutes with physical
properties suitable for the manufacture of optical media.

Source Identification Code (SID Code - a system of codes used to identify the source of
all optical media mastered, manufactured or
replicated by any establishment or entity.

Types of Optical Media managed by the Optical Media Board (OMB)

 OPTICAL MEDIA
1. Film Products
2. Music Products (excluding Vinyl)
3. Book on Disc
4. Software (Business Software/Games/Application/Installer)
 5. Other Types of Optical Media (Schedule ”C”) CD, CD-A, CD-I, CD-P, CD-
R, CD-ROM, CD-RW, CD-WO, CVD, DVD, DVD-RAM, DVD-ROM, EVD,
LD, MD, SACD, SVCD, VCD, or any technical variation thereof, now
known or to be known in the future
 MAGNETIC MEDIA
1. Film Products
2. Music Products (excluding Vinyl)
3. Book on Disc
4. Software
 MANUFACTURING EQUIPMENT
1. Replication Equipment
2. Duplicators
3. CD/DVD Recorder
 MANUFACTURING MATERIALS
1. Optical Grade Polycarbonate
 ACCESSORIES
1. CD/DVD Case

Optical Media Board (OMB)

 The Video gram Regulatory Board (VRB) created under Presidential Decree No.
1987 (October 5, 1985) is hereby reorganized into the Optical Media Board
(OMB).
 The Optical Media Board (OMB), under the direct supervision of the Office of the
President, was created pursuant to Republic Act (R.A.) No. 9239 known as the
Optical Media Act of 2003 which was approved on February 10, 2004.
 The board is composed of five regular and four ex-officio members.
 It is headed by a Chairperson who is also the Chief Executive Officer (CEO).
 It has a Secretariat headed by an Executive Director who assists the
Chairperson/CEO in the thy-to-thy operations.
 OMB has complement of 60 plantilla personnel and four contractual.
 It operates under four divisions namely:
* Administrative and Finance Division
* Legal Division,
* Registration and Licensing Division
* Enforcement and Investigation Division
and two units namely:
* Public Information and Communication Unit
* the Planning Unit
 The agency is mandated to regulate the mastering, manufacture, replication,
importation and exportation of optical media in all forms. Coverage of authority is
the entire territory of the Republic of the Philippines including the economic
zones as defined both under R.A. Nos. 9239 and 7916.

RA 9239 – Licensing and Registration

Any person, establishment or entity shall, prior to engaging in one or more of the
businesses or activities enumerated hereunder, register with, and secure the
appropriate licenses from the OMB:
1. Importation, exportation, acquisition, sale or distribution of optical media,
manufacturing equipment, parts and accessories and manufacturing materials
used or intended for use in the mastering, manufacture or replication of optical
media.
2. Possession or operation of manufacturing equipment, parts and accessories, or
the possession, acquisition, sale or use of manufacturing materials for the
mastering, manufacture or replication of optical media.
3. The mastering, manufacture, replication, importation or exportation of optical
media.
RA 9239 – Penalties
 Imprisonment of at least three (3) years but not more than six (6) years, and a
fine of not less than Five hundred thousand pesos (Php 500,000.00) but not
exceeding One million five hundred thousand pesos (Php 1,500,000.00), at the
discretion of the Court, shall be imposed on any person, natural or juridical, who
shall:

RA 9239 - Offenses
1. Engage in the importation, exportation, acquisition, sale or distribution of, or
possess or operate manufacturing equipment, parts and accessories without the
necessary licenses from the OMB
2. Engage in the mastering, manufacture, replication, importation or exportation of
optical media without the necessary licenses from the OMB
3. By himself, or through another, cause the mastering, manufacture or replication
of any intellectual property in optical media intended for commercial profit or
pecuniary gain without authority or consent of the owner thereof
4. Engage in the mastering, manufacture or replication of optical media without
affixing or installing in the resulting products the SID Code, and/or such other
codes prescribed, assigned and authorized by the OMB. The absence of the
codes prescribed, assigned and authorized by the OMB in any optical media
shall be prima facie evidence that said optical media are in violation of this Act
5. Engage in the mastering, manufacture or replication of optical media using,
affixing or installing in the resulting products false SID or other codes. The
presence of false or unauthorized codes shall be prima facie evidence that said
optical media are in violation of this Act
6. Engage in the mastering, manufacture or replication of optical media using,
affixing or installing in the products the SID Codes, and/or other codes that have
been assigned by the OMB to another person, or, having been assigned and
authorized said codes by the OMB, allow or authorize another person,
establishment or entity to use, affix or install such codes in the latter’s products

Piracy of the Optical Media

RA 9239 – Piracy
 Piracy is never explicitly defined under the Philippine laws. But its meaning may
be deducted by reading the Penal Provisions of RA 9239 or the Optical Media
Act. Section 19, as stated in the previous slides.

RA 9239 – Issues
Piracy is more than an act of unauthorized replication and distribution of works, but a
social phenomenon related to other issues.
 First is the issue of unemployment. It is quite obvious that the selling of pirated
CD’s and DVD’s gives livelihood to thousands of poor Filipinos. Does the selling
of pirated medias as mean of livelihood of our poor Filipinos a crime? Or taking
their only source of income much a greater crime?
 Another issue is education. If one would carefully observe, majority of computers
in this country use pirated software. That means, majority of our citizens
acquired/are acquiring knowledge in information technology through the use of
pirated software. If not for the pirated Windows office, we would still be using the
typewriter, or the acetate and the overhead projector for our presentation. Going
after the people selling or buying pirated software is like going after the very
things that enable us to connect to the modern world.
Some CD/DVD shops offer than the classy record bars and video shops found in
huge malls. The titles vary from the mainstream cinema to the classics and
independent. Film buffs can now enjoy the works of the masters like Akira Kurosawa,
Francois Truffaut, Godard and even other lesser known but great filmmakers around the
world. Why is this important? Because it provides an alternative to the mainstream
cinema that we are accustomed to. We got used to watching blockbuster movies and
teen flicks from Hollywood.
So, if this is the case – if the Philippines directly benefits from piracy, or if the
phenomenon serves the national interest, what about the losses suffered by the
recording industry and the artists? The government is now in a dilemma: Who should
the government protect, the artists and the industry or the poor pirated CD vendors?
Which is more important, protection of intellectual property or prioritizing national
interest?

Is the OMB still relevant?

The Optical Media Board was created by virtue of Republic Act No. 9239, otherwise
known as the Optical Media Act of 2003. It was created in order to ensure the protection
and promotion of intellectual property rights. Towards this end, the law was passed to
institute a means to regulate the manufacture, mastering, replication, importation and
exportation of optical media.
The law was passed during the advent of video rental shops during the latter part of
the 20th Century and the beginning of the new millennium when video rental shops
sprouted left and right with big names such as Video City and ACA Video catering to
those who prefer quality viewing over price considerations. However, it did not take long
before these establishments started to die down because of the increasing competition
from pirated versions of films and compact discs. Later on, online piracy and streaming
services have also greatly affected the industry
As it stands today, the very reason that the Optical Media Board sought to promote
and regulate, is an obsolete industry that does not contribute any meaningful impact to
the socio-economic and cultural aspects of our society. Thus, for the reasons stated,
does the Optical Media Board still relevant today?
DATA PRIVACY ACT OF 2012 (RA 10173)
 Title: Data Privacy Act of 2012
 Date: Approved into law last August 15, 2012 by Pres. Benigno Aquino III.
 an act protecting individual personal information in information and
communications systems in the government and the private sector, creating for
this purpose a National Privacy Commission, and for other purposes
 combination of Senate Bill 2965 and House Bill 4115.

OBJECTIVES – RA 10173
 protects the privacy of individuals while ensuring free flow of information to
promote innovation and growth
 regulates the collection, recording, organization, storage, updating or
modification, retrieval, consultation, use, consolidation, blocking, erasure or
destruction of personal data
 ensures that the Philippines complies with international standards set for data
protection through National Privacy Commission (NPC)

SALIENT FEATURES OF RA 10173