In the USTR’s newly released 2021 Notorious Markets List, only the Philippines and four other countries were highlighted for “positive developments” in anti-counterfeit actions by the government. 

The Bureau of Customs, a member of the NCIPR which is led by the Intellectual Property Office of the Philippines (IPOPHL), was noted for its seizure of counterfeit medicine and personal protective equipment in Manila, as well as a substantial amount of counterfeit luxury goods in Pasay. 

The USTR also cited some critical partnerships that IPOPHL sealed last year, such as with the International Trademark Association and the Asia Video Industry Association, to curb counterfeiting and piracy, respectively. 

It also mentioned IPOPHL’s contribution in making possible the landmark memorandum of understanding (MOU) between brand owners and e-commerce platforms Lazada and Shopee. The MOU establishes a notice-and-takedown procedure and a feedback mechanism for right holders. 

“The United States commends these efforts and encourages governments, right holders, service providers, and the owners and operators of these and other markets, including those newly identified in the 2021 NML, to engage in sustained and meaningful efforts to combat piracy and counterfeiting,” the USTR report read. 

IPOPHL Director General and NCIPR Acting Chair Rowel S. Barba welcomed the USTR’s recognition.

“We are delighted especially as this comes at a time enforcement authorities are faced with new challenges. The pandemic and the subsequent e-commerce boom has brought a wave of online counterfeiting and piracy activities that is becoming our new normal,” Barba said. 

“More work is surely ahead but this only motivates us to beef up our enforcement efforts and innovate in our approaches, in order to continue positioning the country as a place where IP investments are valued and protected,” he added. 

Greenhills still on list 

However, the USTR report remained to include the Greenhills Shopping Center as one of the 35 notorious physical markets for counterfeit goods in 2021. The mall has long been on the list for selling fake electronics, perfumes, watches, shoes, accessories and fashion items. 

This time, however, the USTR noted a new concern in that sellers are “becoming bolder in displaying and openly discussing the illicit nature of the counterfeit goods, instead of discretely hiding the counterfeit goods under the tables as they did in the past.” 

Nevertheless, the USTR recognized the Philippine government’s efforts to curb counterfeiting in the San Juan-based mall, particularly through an enforcement and monitoring agreement with the local government and the creation of a working group composed of various agencies from the NCIPR and the Department of Information and Communications Technology. 

“We recently formed within the NCIPR a technical working group that is specifically tasked to address issues with Greenhills. We are considering new approaches and  efforts in institutionalizing IP respect in the mall, from the seller-community up to top-level management, to see its culture changed for the better,” IPOPHL Deputy Director General Teodoro C. Pascua said. 

The Notorious Markets List is an annual list released by the USTR since 2011. It highlights online and physical markets that reportedly engage in or facilitate substantial trademark counterfeiting or copyright piracy, and aims to help market operators and governments protect IPs of American businesses. 

Many of us want to watch premium content– that global blockbuster movie, the NBA finals, a popular K-Drama series.  But there are still those who would rather access them for free through piracy streaming sites and apps instead of paying for subscriptions in legitimate sites, unaware of the risks they pose.

Piracy, or the illegal reproduction or distribution of copyrighted materials, hurts the entertainment industry, depriving content creators of income.  This reality is often ignored by people who do not realize that patronizing illicit sites and applications can also seriously affect them.

Malicious ads and popups in piracy sites and streaming apps are used by cybercriminals to infect devices with malware.  It can lead to loss of privacy and personal data or identity theft, and even cripple devices and hold data hostage.

A December 2021 study commissioned by the Asia Video Industry Association (AVIA) through YouGov entitled “Time to Compromise” shows how a test personal computer was compromised within 42 seconds of visiting a piracy website.  A test Android device was compromised in 1:18 seconds when installing a popular piracy-related app.

The report said once a search term is typed, the user is immediately targeted for infection. For instance, clicking on a movie title can trigger the download of a file with the title name plus an “.apk” extension which contains malware that can read and write to external storage, access WiFi, and the calendar.

When users click “Play” to stream, they may also encounter a request to allow notifications that could contain malicious links or use a CAPTCHA to confirm that they are human. Clicking the CAPTCHA provides an opportunity for malware download and installation.

In addition, ads and repeated popups were designed to confuse and encourage users to install software detrimental to their machines, such as the Chrome extension called “Adblock 360,” which actually operates as adware.

Some “high risk” ads on piracy sites also direct users to adult and gambling sites.  These pose significant risks to society, especially children who may come across them unwittingly.

“We found that a typical user visiting these sites would be infected by ransomware, a number of trojan horses, and other Advanced Persistent Threats (APTs)… Malware authors can in turn gain access to consumer PCs and mobile devices, and all of the data held in storage, but also access to banking login details and other sensitive logins,” the report said.

Another AVIA and YouGov study titled “Consumer Risk and Digital Piracy – Where Does Malware Come From?” showed that 24% of respondents have accessed pirated content.  They also have friends, family, household members, and officemates who have done the same.

The May 2021 study by professor Paul Watters also found that the majority or 41% are also aware of the relationship between malware and piracy and even consider piracy sites as the second-highest source of malware, next to adult sites.

As a partner of AVIA and a strong anti-piracy advocate, Globe has been pursuing the #PlayItRIght campaign to educate the public about the perils of accessing pirated content online, such as being exposed to malware and inappropriate content.

The campaign also upholds copyright, helping protect the art and livelihood of content creators.

“Globe firmly stands behind filmmakers and entertainment content creators.  We must respect their hard work and help sustain their jobs and the lives that depend on them by fighting online content piracy.  Pirated content also often contains malware, that is why we encourage everyone to download from legitimate sources only,” said Yoly Crisanto, Globe Chief Sustainability Officer and SVP for Corporate Communications.

Globe is coordinating closely with government and content providers in crafting an appropriate site-blocking mechanism that will put more teeth to the fight against cyber pirates in the absence of a law penalizing them. It also invests in piracy detection technologies for more efficient monitoring and takedown of illegal sites.

Globe strongly supports the United Nations Sustainable Development Goals, particularly UN SDG No. 8, to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. It is committed to upholding the UN Global Compact principles and contributing to 10 UN SDGs.

To know more about how Globe, visit www.globe.com.ph.

Globe supports the creation and activation of tougher legislation that will address online content piracy, which strips billions off legitimate content providers. As an internet service provider (ISP) and content creator itself, Globe believes that a law that ensures a cohesive and solid stand against the problem needs to be enacted. 

Piracy is a serious problem in the Philippines. One of its recent victims was the Metro Manila Film Festival, which was held on a virtual platform last year.  As soon as the films became available online, pirated copies were sold for P10 each versus the ticket price of P250.  This left the 2020 MMFF with only P19 million in revenue as compared to the P995 million earned in 2019.

Speaking at the “Philippines in View” webinar conducted by the Asia Video Industry Association (AVIA), Globe Chief Sustainability Officer and SVP for Corporate Communications Yoly Crisanto said: “The impact of piracy, not just to the economy but also to the lives and jobs of the people in this industry, is really huge. We see younger customers being more conscientious in avoiding illegal content but that’s not going to end it.  We still need an enabling law.”

In the absence of such a law, Globe and other ISPs decided to work with government agencies, particularly the Intellectual Property Office (IPO) and the National Telecommunications Commission (NTC) in crafting an appropriate site-blocking mechanism that will put more teeth in the fight against cyber pirates.

“We are hoping that within this year, we’re going to have a draft set (of the Memorandum of Understanding) for approval before the NTC and the different stakeholders,” Atty. Ann Edilon, Head of the IPOPHL Enforcement Office confirmed in the panel.

Crisanto further explained the psychology behind widespread piracy in the Philippines. “Consumers pirate because they feel that when they’re on the internet since they paid for the data anyway, what’s on the internet is already free,” she said. However, pirated materials may be free but consumers may still have to pay a price in the form of malware. 

As a response, Globe introduced the #PlayItRight campaign in 2017 to motivate customers to exercise personal responsibility in their digital content consumption. It also encourages everyone to firmly stand behind filmmakers and entertainment content creators, to respect their hard work, and help sustain their jobs.

Pascal Metral, Vice President for Legal Services of NAGRA, a high-end Swiss Audio Technology provider, on the other hand, explained the importance of site-blocking.

“When fighting piracy, you must consider addressing the source of supply, and also the demand for piracy. Site blocking is really in between these two aspects of piracy.  Although you will not actually kill or deactivate those websites, you will at least put in place blocking measures, and prevent or impede users of given territories access to these sites,” he said.

Sharing the results of a recent survey, Metral revealed that half of the consumers in the Philippines are accessing content through illegal streaming websites.  The most preferred pirated content types fall under the categories of live content, sports, linear activities, series, and movies.

Despite a potentially long wait, there is no stopping Globe from pursuing what it has started as a crusade against piracy, given what’s at stake in the end.

To know more about Globe, visit www.globe.com.ph.