Case Study For Ece Board Exam

CASE STUDY FOR ECE BOARD EXAM, PRACTICE OF ECE IN OTHER COUNTRIES,
TRACKING SYSTEM, RELEVANCE AND NON RELEVANCE OF PROFFESIONAL

LICENSE,FIELD TRIPS, AND ON THE JOB TRAINING / INTERNSHIP
A Report Submitted to the Faculty, Electronics Engineering Department, School of Engineering and
Architecture
In Partial Fulfilment of the Course, ECE Laws, Contracts, and Ethics (ECE 516)
Prepared by:
Bautista, Jomar Melis, Marvin
Depaynos, Jeiffer Misolas, Kim
Igualdo, Ianmor Sutiangso, Allan
Kabigting, Sean Tuguinay, Jeriel
Malqued, Rommel
Schedule:
2:30 – 3:30 MWF
Submitted to:
Engr. Jefferson Walcien
Date:
December 11, 2018

Contents
CASE STUDY FOR ECE BOARD EXAM ............................................................................................................. 3
STATEMENT OF THE PROBLEM ................................................................................................................. 3
BACKGROUND OF THE PROBLEM ............................................................................................................. 4
October 2018 Board Exam Schedule .................................................................................................... 4
SYLLABI FOR THE ELECTRONICS ENGINEER (ECE) LICENSURE EXAMINATION ...................................... 5
CHED MEMORANDUM ORDER (CMO) No. 24, Series of 2008 .............................................................. 7
Suggested Free or Track Elective Courses............................................................................................. 9
SOLUTIONS .............................................................................................................................................. 15
ACTION PLAN ...................................................................................................................................... 18
CASE STUDY FOR FIELD TRIPS ..................................................................................................................... 22
STATEMENT OF THE PROBLEM ............................................................................................................... 22
BACKGROUND OF THE PROBLEM ........................................................................................................... 22
SOLUTIONS .............................................................................................................................................. 23
CASE STUDY FOR ON THE JOB TRAINING / INTERNSHIP ............................................................................. 24
STATEMENT OF THE PROBLEM ............................................................................................................... 24
BACKGROUND OF THE PROBLEM ........................................................................................................... 24
SOLUTIONS .............................................................................................................................................. 25
APPENDIX .................................................................................................................................................... 26
PREFACE ...................................................................................................................................................... 30
BACKGROUND ............................................................................................................................................. 31
INDUSTRY PROFILES .................................................................................................................................... 34
SOFTWARE INDUSTRY ............................................................................................................................. 34
New Investments and Employment .................................................................................................... 35
IT Human Capital ................................................................................................................................. 37
Software Piracy ....................................................................................................................................... 40
Trends in Piracy ................................................................................................................................... 40
Effects on Investments........................................................................................................................ 41
MUSIC INDUSTRY .................................................................................................................................... 43
Music Piracy ........................................................................................................................................ 45
MOVIE/VIDEO INDUSTRY ........................................................................................................................ 46
Video Piracy ........................................................................................................................................ 48
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INTELLECTUAL PROPERTY RIGHTS PROTECTED .......................................................................................... 49
Policy and Regulation .............................................................................................................................. 50
Enforcement and Adjudication ............................................................................................................... 56
Government Sector Efforts on Enforcement ...................................................................................... 56
Government Sector Efforts on Border Control ................................................................................... 61
Government Sector Efforts On Mediation .......................................................................................... 61
Effects of Enforcement Activities on Piracy Rates .............................................................................. 62
Private Sector Effort ............................................................................................................................ 66
Public Information and Education Campaign ......................................................................................... 66
Government Effort .............................................................................................................................. 66
Private Sector Effort ............................................................................................................................ 68
INSIGHTS ON INTELLECTUAL PROPERTY PROTECTION ............................................................................... 70
CONCLUSION............................................................................................................................................... 72
REFERENCES ................................................................................................................................................ 73
APPENDIX .................................................................................................................................................... 79
MOTION PICTURE PIRACY ESTIMATION METHODOLOGY ...................................................................... 79
IPC VIDEO PIRACY ESTIMATION METHODOLOGY ................................................................................... 80
MUSIC/RECORDING PIRACY .................................................................................................................... 81
CASE STUDY FOR ECE BOARD EXAM
STATEMENT OF THE PROBLEM

The rapid growth of technology has given an increase in demand for people practicing the
electronics engineering profession. In the Philippine setting, students pursuing the electronics engineering
(ECE) course must pass first the ECE Board Exam in order to get their license to be recognized as a
registered electronics engineer (RECE) and be able to practice the ECE professions according to Article III,
Section 13 of RA 9292. However, the national passing rate of ECE from the years 2007-2018 is fluctuating
from 35% to 50.94%, which is unsatisfactory. This is faced by many educational institutions / colleges /
universities in the Philippines, one of which is Saint Louis University (SLU) of Baguio City, with a passing
rate fluctuating from 23% to 55.36% on the years 2007 to 2018.
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BACKGROUND OF THE PROBLEM
The State recognizes the importance of electronics engineering in nation-building and
development. The State shall therefore develop and nurture competent, virtuous, productive and well-
rounded Professional Electronics Engineers, Electronics Engineers and Electronics Technicians whose
standards of practice and service shall be excellent, qualitative, world-class and globally competitive
through inviolable, honest, effective and credible licensure examinations and through regulatory
measures, programs and activities that foster their integrity, continuing professional education,
development and growth (RA 9292, Article I, Section 2). This law gave the provisions needed in conducting
the board exam as well as the reason why graduates of BSECE take the board exam (RA 9292, Article III,
Sections 14, 15, 16).
However in the past years, the passing rate of ECE board exam here at SLU is very low as shown
in the table below. This issue is very alarming not only to the takers who wish to be an electronics engineer
but also to the instructors of ECE who teach and guide these takers, the universities who offer the ECE
program, the review centers that specialize in ECE Board Exam Preparation Services, and to the nation
that needs manpower to contribute to the development of the country.
April October
Year Nat’l Passing Rate SLU Passing Rate Nat’l Passing Rate SLU Passing Rate
2007 35% 35% 30% (Nov) 30% (Nov)
2008 35% (March) 35% (March) 36% 36%
2009 24% (March) 24% (March) 29% 26%
2010 27% 27% 21% 23% (Nov)
2011 44.97% 36.36% 36.87% 44.57%
2012 53.55% 47.58% 51.57% 53.67%
2013 37% 31.9% 34.51% (Dec) 38.50%
2014 35.24% (March) 29.6% 31.58% (Sept) 33.15%
2015 34.95% 23.23% 39.94% 31.06%
2016 36.95% 30.08% 40.36% 44.85%
2017 41.27% 40% 46.72% 55.36%
2017 45.36 47.73% 49.49% 50.94%
Table 1. ECE Board Exam Passing Rate considering the past 10 years
October 2018 Board Exam Schedule

The schedule of the recent October board exam is shown below.
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As the schedule shows, there are 2 days for the board exam with a coverage on 4 areas:
Mathematics, Electronics Engineering, General Engineering and Applied Sciences (GEAS) and Electronics
Systems and Technologies. Math and GEAS takes 4 hours while Electronics Engineering and Electronics
Systems and Technologies takes 5 hours.
SYLLABI FOR THE ELECTRONICS ENGINEER (ECE) LICENSURE EXAMINATION
I. MATHEMATICS (20%)
1. Algebra & General Mathematics
2. Geometry
3. Trigonometry
4. Calculus
5. Mathematics Laws, Terms and Theories
II. GENERAL ENGINEERING & APPLIED SCIENCES (20%)

1. Engineering Mechanics
2. Strength of Materials
3. College Physics
4. General Chemistry
5. Thermodynamics
6. Engineering Materials
7. Engineering Economics
8. Engineering Management
9. Laws and Ethics
III. ELECTRONICS ENGINEERING (30%)

1. Electricity/ Magnetism Fundamentals
2. Electrical Circuit
3. Solid State Devices/Circuits
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4. Power Generator/ Sources/ Principles/Applications
5. Electronic (Audio/RF) Circuit/Analysis/Design Cells and batteries
6. Tests and Measurements
7. Microelectronics
8. Industrial Electronics Principles/Applications
9. Computer Principles
IV. ELECTRONICS SYSTEMS AND TECHNOLOGIES (30%)

1. Radio Communication System
a. Transmission Fundamentals
b. Acoustics
c. Modulation
d. Noise
e. Radiation and Wave Propagation
f. Antennas
g. Wire and Wireless Communications System
h. Microwave Communications and Principles
i. Basic Principles of various electronics systems
2. Digital and Data Communications Systems
a. Digital Communication Networks
b. Fiber Optics
3. Satellite, Broadcasting and Cable TV Systems
a. Satellite System
b. Broadcasting and Cable TV system
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As stated in RA 9292, Section 14, paragraph c, one requirement for an individual in order to take the
ECE Board Examinations is that he/she must be a holder of the degree Bachelor of Science in Electronics
and Communications Engineering or Electronics Engineering. With such requirement, it is therefore
imperative that aspiring Electronics Engineers complete the program required by the Commission on
Higher Education as it is the governing body of the Philippine government in charge of designing
curriculums to guarantee a certain breadth of knowledge through a set of courses (CHED MO No. 24,
Series of 2008, Article V, Section 7).
CHED MEMORANDUM ORDER (CMO) No. 24, Series of 2008

SUBJECT : POLICIES AND STANDARDS FOR THE DEGREE OF BACHELOR OF SCIENCE IN ELECTRONICS
ENGINEERING
ARTICLE V. Section 7. Curriculum Description
“…The curriculum is designed to guarantee a certain breadth of knowledge of the BSECE
disciplines through a set of core courses. It ensures depth and focus in certain disciplines through
areas of specialization. It provides a recommended track of electives that HEIs may adopt or develop.
The curriculum develops the basic engineering tools necessary to solve problems in the field of
Electronics Engineering. This enables the graduate to achieve success in a wide range of career….”
The Curriculum for BSECE allows the students to learn the different disciplines and areas of specialization
in the electronics field. The subjects listed are the basic engineering tools that will help the students to
practice their profession. Below is the list of curriculum outline starting from Third year to Fifth year.
Section 8. Curriculum Outline

THIRD YEAR
Third Year- First Semester
No. of Hours Total

Subjects Lec Lab Units Prerequisite subjects
Computer Aided Drafting 0 3 1 Third Year Standing
Prerequisite-Physics 2, Integral
Circuits 1 3 3 4 Calculus,Corequisite- Differential
Equations
Electronic Devices and Circuits 3 3 4 Physics 2,Integral calculus
Vector Analysis 3 0 3 Integral Calculus
Differential Equations 3 0 3 Integral Calculus
Statics of Rigid Bodies 3 0 3 Physics 1, Integral Calculus
Humanities 3 3 0 3
Total 18 9 21
Third Year- Second Semester
No. of Hours Total

Subjects Lec Lab Units Prerequisite subjects
Dynamics of Rigid Bodies 2 0 2 Statics of Rigid Bodies
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Mechanics of Deformable Bodies 3 0 3 Statics of Rigid Bodies
Advanced Engineering Mathematics
3 0 3 Differential Equations
for ECE
Vector Analysis, Physics 2,
Electromagnetics 3 0 3
Integral calculus
Circuits 2 3 3 4 Circuits 1
Electronic Circuit Analysis and Design 3 3 4 Electronic Devices and Circuits
Environmental Engineering 2 0 2 General Chemistry
Safety Management 1 0 1 Third Year Standing
Total 20 6 22
FOURTH YEAR
Fourth Year- First Semester
No. of Hours Total

Subjects Prerequisite subjects
Lec Lab Units
Probability and Statistics,
Signals, Spectra, Signal Processing 3 3 4 Advanced Engineering
Mathematics for ECE
Electronic Circuit Analysis and
Principles of Communications 3 3 4 Design, Advanced Engineering
Math
Energy Conversion 3 3 4 Electromagnetics, Circuits 2
Basic Thermodynamics 2 0 2 Integral Calculus, Physics 2
Engineering Economy 3 0 3 Third year Standing
ECE Elective 1(Tracks) 3 0 3
Design
Total 17 9 20
Fourth Year- Second Semester
No. of Hours Total

Lec Lab Units
Engineering Management 3 0 3 Third Year Standing
Digital Communications 3 3 4 Principles of Communications
Industrial Electronics 3 3 4
Design
Logic Circuits and Switching Theory 3 3 4 Electronic Devices and Circuits
Advanced Engineering Math,
Numerical Methods 3 3 4 Computer Fundamentals and
Programming
ECE Elective 2 (Track) 3 0 3
Total 18 12 22
8
FIFTH YEAR
Fifth Year- First Semester
No. of Hours Total

Lec Lab Units
Advance Engineering, Mathematics for
Feedback and Control Systems 3 3 4
ECE
Transmission Media and Antenna Digital Communications,
3 3 4
Systems Electromagnetics
Logic Circuits and Switching Theory,
Computer Fundamentals and
Microprocessor Systems 3 3 4
Programming,
Electronic Circuit Analysis and Design
Practicum/ Thesis 1 0 3 1 5th year Standing
ECE Laws, Contracts and Ethics 3 0 3 5th Year Standing
Total 15 12 19
Fifth Year- Second Semester
No. of Hours Total

Lec Lab Units
Seminars and Field Trips 0 3 1
Data Communications 3 3 4 Digital Communications
Practicum/Thesis 2 0 3 1 Practicum Thesis 1
Total 6 9 9
GRAND TOTAL 207
Suggested Free or Track Elective Courses
A. COMMUNICATIONS
● Wireless Communication
● Communications System Design
● Navigational Aids
● Broadcast Engineering
● Advanced Electromagnetism (also for Microelectronics track)
● DSP*
● Telemetry*
● RF Design System Level*
● Mixed Signals-Systems Level*
● Digital Terrestrial XSM*
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● Compression Technologies*
B. MICROELECTRONICS TRACK
● Advanced Electromagnetism
● Introduction to Analog Integrated Circuits Design
● Introduction to Digital VLSI Design
● VLSI Test and Measurement
● IC Packaging and Failure Analysis
● Advanced Statistics (Also for Biotech/Biomedical track)*
● Mixed Signals-Silicon Level*
● RF Design-Silicon Level*
● CAD-Tool Design*
● Solid State Physics & Fabrication*
C. BIOTECH/BIOMEDICAL ENGINEERING TRACK
● Fundamentals of Biomedical Engineering

● Physiology
● Principles of Medical Imaging
● Biomechanics
● Biomaterials
● Biophysical Phenomena
● Advanced Statistics (Also for Microelectronics track)*
● Telemetry*
● Optoelectronics*
● Embedded System*
● Micro Electrical Mechanical System (MEMS)*
● Nano Electrical Mechanical System (NEMS)*
D. INSTRUMENTATION AND CONTROL*
● Mechatronics*
● Robotics*
● Modelling and Simulation*
● Digital Control System*
● Metrology*
● MEMS (also for Biotech/Biomedical Engineering track)*
● NEMS (also for Biotech/Biomedical Engineering track)*
● Sensors Technology*
F. INFORMATION AND COMPUTING TECHNOLOGIES*
● Computer Systems*
● I/O Memory System*
● Computer Systems Architecture*
● Data Structure & Algorithm Analysis*
● Computer Systems Organizations*
● Structure of Program Language*
● Operating Systems*
● Digital Graphics, Digital Imaging and Animation*
● Artificial Intelligence*
The possible factors that can be considered that resulted to the low passing rate of the ECE board exam,
especially in SLU, are the following in reference to CMO 24, S. 2008, Article V, Section 7,8:
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1. CHED Memorandum regarding the track system of ECE
With this memorandum, the CHED recommended track of electives that HEIs may adopt or develop.
These electives made the students choose their specialization, however the board exam does not
segregate students according to these tracks. This makes other electives advantageous from others
because, in school, each elective has different subjects to tackle for specialization but in board exam, it
doesn’t matter. Thus, the student can be very lucky if the item from the board exam is something that
his/her elective has already discussed. (CMO 24, S. 2008, Article V, Sec. 7)
2. SLU’s Curriculum
SLU’s Curriculum can also be considered as a factor since the curriculum of a program determines
the subject that a student must undertake to be able to graduate and obtain a baccalaureate degree which
enables the alumna to take the boards. The tables below will show the comparison between the CHED’s
curriculum (CMO 24, S. 2008, Article V, Sec. 8) vs. SLU’s (SLU ECE Curriculum Effective 2009-2010).
Third Year – First Semester
CHED Subjects Units SLU Subjects Units

Computer Aided Drafting 1 3rdyr- 2ndsem
Circuits 1 4 Circuits 1 4
Electronic Devices and Circuits 4 Electronic Devices and Circuits 6
Vector Analysis 3 Vector Analysis 3
Differential Equations 3 Differential Equations 3
Statics of Rigid Bodies 3 Statics of Rigid Bodies 3
Humanities 3 3 Literature of PH 3
Discrete Mathematics 3
Total 21 25
Third Year – Second Semester
CHED Subjects units SLU Subjects Units

Dynamics of Rigid Bodies 2 Dynamics of Rigid Bodies 2
Mechanics of Deformable Bodies 3 Strength of Materials 3
Advanced Engineering Advanced Engineering
3 3
Mathematics for ECE Mathematics for ECE
Electromagnetics 3 Electromagnetics 3
Circuits 2 4 Circuits 2 4
Electronic Circuit Analysis and Design 4 Electronic Circuit Analysis and Design 6
Environmental Engineering 2 5thyr – 2ndsem
Safety Management 1 4thyr – 1stsem
Technical Writing 3
Signals, Spectra, Signal Processing 4
CADD 2 2
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Total 22 30
Fourth Year – First Semester
Subjects Units Subjects Units

Signals, Spectra, Signal Processing 4 3 yr – 2ndsem
rd
Principles of Communications 4 Principles of Communications 6

Energy Conversion 4 Energy Conversion 4
Basic Thermodynamics 2 Basic Thermodynamics 3
Engineering Economy 3 4thyr – 2ndSem
ECE Elective 1(Tracks) 3 ECE Elective 1(Tracks) 4
Logic Circuit and Switching Theory 6
Material Science and Engineering 3
Total 20 26
Fourth Year- Second Semester

Engineering Management 3 5thyr – 1stsem
Digital Communications 4 5thyr – 1sy sem
Industrial Electronics 4 Industrial Electronics 4
Logic Circuits and Switching Theory 4 4thyr – 1stsem
Numerical Methods 4 Numerical Methods 4
ECE Elective 2 (Track) 3 ECE Elective 2 (Track) 4
Feedback and Control Systems 4
Safety Management 3
Transmission Media and Antenna
4
Systems
Total 22 23
Fifth Year- First Semester
unit Units
CHED Subjects SLU Subjects
s
Feedback and Control Systems 4 4thyr – 2ndsem
Transmission Media and Antenna
4 4thyr – 2ndsem
Systems
Microprocessor Systems 4 Microprocessor Systems 4
Practicum/ Thesis 1 1 Practicum/ Thesis 1 2
ECE Laws, Contracts and Ethics 3 ECE Laws, Contracts and Ethics 3
Digital Communication 4
Telephony 3
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Intro to Digital Signal
4
Processing
Eng’g Management 3
Total 19 22
Fifth Year- Second Semester

Seminars and Field Trips 1 Seminars/ Plant Visit/ OJT 2
Data Communications 4 Data Communications 4
Practicum/Thesis 2 1 Practicum/Thesis 2 1
Microwaves 3
Medical and Bio Electronics 3
EnviEng’g 3
Total 9 19
As shown in the tables above, there are some subjects that are added or omitted from the
recommended course curriculum of the CHED from SLU. The curriculum that was considered started from
3rd year since, in SLU, major courses only start on that year. In the tables, you will notice that the load in
SLU’s curriculum is equal or always greater than the CHED’s curriculum. The increase in load of students
might have an effect on the student’s ability to absorb the information of a subject which affects the
possibility of the students to pass the board exam.
The high number of units that the students are taking every semester also means that they must
allocate more time in attending their classes. In SLU, majority of the engineering classes have Saturday
classes. This would mean that even the student’s weekend is being spent on academics and the remaining
day, which is Sunday, might be even used for fulfilling the requirements of their subjects. Given this
situation, the student does not have enough time to review their notes or even unwind to reinvigorate.
This kind of environment might increase the stress the students might feel which disables/inhibits their
growth or capabilities to increase their knowledge that leads to lesser chance of passing the board exam.
Additionally, as we can see from the tables, all of the subjects related to ECE are only offered on the
third year of the student. A sudden rise on the level of difficulty of the subject results to students having
a hard time adjusting for their major subjects. Some take the whole prelims just to adjust while others can
even take the whole semester which will result to failure (Montero, 2017). Since most of the subjects on
first semester during the third year are the basic foundations of ECE, the students who are still in the
adjustment phase will fail to have a good foundation on ECE subjects. This will lead to a domino effect
when they move forward to their higher ECE subjects which can lead to a lower chance of passing the
board exam (Pelayo, 2017).
3. Instructors Factor
The instructors of the universities are considered as a factor since the things learned by the students
in the universities are taught by them. The teacher’s teaching style, skills, capability, attitude and
personality can affect the student’s understanding of the lessons.
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There are a lot of teaching styles that an instructor can use, but there are also a lot of students with
different preferences. Therefore, it is not wrong for the instructor to stick to his/her teaching style but
he/she must be flexible enough to accommodate the students for them to be able to understand the
lesson more. This also includes the instructor’s activities for the class or students. The projects/
homework/ exams must be reasonable and be justified by the curriculum for the students to be motivated
to do the activity. The instructors must also have a good attitude towards the students and work. The
instructors must not teach just to have a salary but also to be able to help the students who aim to be
engineers. The instructors must have a mindset that their lessons will have an impact to the students.
Thus, he/she must teach well for the sake of the students and for the nation that rests its hope to these
students.Personality is very important not only to the instructors but also as a person. Instructors must
have a pleasing personality that will enable the students to comfortably approach the instructors
whenever there are parts of the lessons that are not clarified or understood. However, the students’
growth can be hindered if the students fear the instructors who are supposed to help them (Ome, 2017).
Additionally, hired instructors may be competent engineers but lack teaching proficiency. No matter
how intelligent or smart the instructor is, it is not enough if the instructor cannot effectively pass his/her
knowledge to his/her students. Also, a subject that is taught by two different instructors on two different
classes is a problem. The teaching style of these two instructors is not the same thus some students find
it unfair if the other class learns more than they do or when the other class is given less challenging
activities (Malis, 2017).
4. Students/Takers Factor
The student life of the ECE board examinee is also very critical in the taker’s possibility of passing
because majority of the items in the board exam are taught in school and the student’s ability to
understand those concepts and techniques can surely help him/her in the board exam. As a student,
he/she must take the responsibility of learning as much as possible in the university. Students must not
be complacent in passing the subjects but must also be able to attain new information and knowledge
regarding the matters taught in that particular subject. After graduating, the ECE board examinee’s
attitude can also affect his/her chance of passing (Adais, 2017).
5. Review Center Factor

Review centers are of great help for ECE Board Exam takers but some ECE Board Exam takers take the
board exam for granted and only depends on what the review center teaches. Some review centers are
at fault because of their inability to teach the necessary concepts for the board examinee to understand.
Worst, some review centers do not teach at all, which leads to a low passing rate in the ECE Board Exam
(Adais, 2017).
Review centers, just like instructors, have different teaching methods. This is a problem for ECE Board
Exam takers especially since switching to another review center will be very expensive when the ECE board
exam taker dislikes the teaching style of his/her review center. When the teaching style of the review
center does not fit to the likings of the ECE Board Exam taker, the examinee will have a hard time
understanding the concepts and thus it may lead to him/her failing the ECE Board Exam (Pelayo, 2017).
6. Laboratory Equipment and Facilities Factor

Lack of laboratory equipment and facilities can affect the board exam taker's chance of passing
because the board exam may include certain equipment that the taker has not heard of. Chances are, the
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board exam might ask questions regarding some kind of equipment used on the field or for the academic
purposes. The question might be: how does this equipment work; what is the ideal setting for this device;
and question of this kind. Actual is differentiated from ideal through the use of fully functional and well-
calibrated laboratory equipment. HEIs may have provided this equipment but this is not functional enough
to provide data which are asked in the board exams. Functionality issue may be due to lack of calibration,
it is already damaged due to mishandling. The equipment cannot be repaired because of obsolete parts
or due to the age of the equipment. The number of equipment is also a factor because the less number
of equipment the more members in a group that will share in a single device so the others might not have
the chance to use the device for personal learning in case. (Go, 2017)
7. Unpreparedness
After graduating, a lot of us want to have their license as fast as possible and as easy as possible.
Having a short amount of time in preparing for the board exam is one of the factors why students fail on
their Board Exam.
Students do not have enough time to review all subjects. Referring to RA 9292, Article III, Section 15,
the Board Examinations for ECE should include at least the following subjects: Mathematics, Applied
Sciences, Engineering Economics, Laws and Ethics, Electronics, Communications, Computers, and
Information and Communications Technology. It can be argued that this is a very wide coverage and with
the power bestowed to the ECE Board Members, according to the same section, they can even add
subjects that they deem necessary to be included in the ECE Board Exams thus, making the already wide
coverage even wider. Board exam schedules are usually given during April and October of the year. If a
student graduated on May or December, he/she will only have 4-5 months to prepare for the exam (Layos,
2017).
8. Time Constraint
Information stored in our long term memory is never completely lost but they are difficult to retrieve.
This is the reason why sometimes we know the answer to the question but we can't say or recall it and it
will consume time during board exam.(Accessing Information From Mind - Accessing information: Impact
of long-term memory. (n.d.). Retrieved from http://www.allkindsofminds.org/accessing-information-
from-mind-accessing-information-impact-of-long-term-memory)
ECE board exam is time limited. For the Electronics subject, 100 questions are given for 4 hours to
answer them completely. That would translate to 2.4 minutes per question. If it takes 5-10 minutes to
remember something, the examinee would run out of time and be unable to answer all the questions
(Layos, 2017).
SOLUTIONS
With the issues and concerns pointed out in the previous section as the cause for a low and
unsatisfactory low passing rate of Saint Louis University for the ECE Board Exam, we have come up with
several suggested solutions for each of the factors as a way to significantly increase SLU’s passing rate.
1. CHED Memorandum regarding the track system of ECE
a. PRC Board members should make separate board exam questions according to the track or
elective
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- Making separate board exam questions for each elective eliminates the unfairness
experienced by students who will answer board exam questions that are not tackled by
their chosen specialization or elective.
b. As a student: School organizations (such as the IECEP SLU Student Chapter) can make a case
study regarding the effect of the tracking system as recommended by CHED on CMO 24, S.
2008, Article V, Sec. 7 to the students who took the board exam which tackles all ECE related
subjects. The results or findings as well as the proposed solutions of the case study will then
be presented / submitted to the office of CHED and/or PRC for review by certain
representatives of the school organization.
2. SLU’s Curriculum
a. Lessen the number of units by merging similar subjects

- Lessening the number of units in effect will increase the student’s free time which he/she
can use to unwind, do other school requirements, or review. Subjects such as Electronics
1 and Electronics 2 or Circuits 1 and Circuits 2 can be merged since these subjects are in
close relation with each other.
b. Add an ECE subject on the 1st year 1st semester of an ECE student
- Adding an ECE subject on the 1st year 1st semester can serve as an orientation or
overview to the ECE program so that the ECE student will have a better understanding of
the ECE program.
c. Consider the possibility of class suspensions when making or revising the curriculum
- Since there are many holidays, unforeseen events that causes class suspensions, the
school calendar should have an extra allowance of the number of school days to ensure
that all topics that are allotted for the semester will be discussed to the students properly.
d. As a student: School organizations (such as the IECEP SLU Student Chapter) can make a
proposal to lessen the number of units of the SLU ECE Curriculum. This is backed by the
evident difference between the CHED Curriculum and SLU ECE Curriculum, wherein the
number of units of SLU ECE Curriculum is greater by 1 to 10 units depending on the semester.
This proposal will be submitted to the Department Head, School Dean, and/or SLU
Administrators.
3. Instructor Factor
a. Seminars and coaching procedures should be conducted as an orientation for entry level
instructors.
b. Create assessment tests like departmental examinations and surprise class observation as part
of instructor’s evaluation per semester should be conducted.
c. If necessary, coaching procedures should be done to alert the teacher of inconsistencies in
students’ performance. It can be done by the department head, any eligible part of the
department or hire professionals.
d. Regular seminar for new teaching strategies to be in-phase with the present generation
trends.
e. As a student: Students must evaluate their instructors objectively and honestly because these
evaluations are necessary in improving not only the instructors but also the education that
the students will get.
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4. Students/Takers Factor
a. Parents and instructors must give encouragement and support to the board exam takers.
b. Students must practice self-discipline to avoid distractions in their reviews.
5. Review Center Factor
a. School-based board exam review for students

- It is common knowledge that enrolling in review centers can be costly. It is proposed that
schools or universities, in their respective departments, should provide weekly or monthly
crash courses with take home modules at low cost with no extra fees that will make up
for the incapability of the student to enroll in a review center due to financial reasons.
b. As a student: Student organizations can create groups on social media that is composed of
board exam passers who will state their different opinions on the review centers they have
enrolled to. When students are oriented on the teaching styles or teaching methods of each
review center, students will have a clearer idea on which review center they will enroll to and
thus students will not only base their enrollment on the review center’s passing rate on the
ECE Board Exam.
6. Laboratory Equipment and Facilities Factor
a. Requesting the university or school administration for a higher budget

- With a higher budget for the department, more budget to the improvement of the
equipment and facilities that is used by the students in their ECE classes can be allotted.
This budget is used to purchase new equipment and facilities that will replace the
obsolete ones currently in use.
b. Having competent laboratory technicians
- Both old and new laboratory technicians shall undergo regular training-seminars to help
in the repairing and maintenance of all the equipment and facilities serviced to the
students.
c. Conducting thorough orientation on using the equipment and facilities to the students
- The students borrowing equipment and facilities for use must be mindful that there are
still other users hoping to use those equipment and facilities and must take good care of
them.
d. As students: Student organizations (such as IECEP SLU Student Chapter) can make a formal
proposal to the Department Head, School Dean, and/or SLU Administrators to order or
request better laboratory equipment and facilities. This proposal is backed by signatures of
students as well as instructors who agree that functional and up-to-date laboratory
equipment and facilities are necessary in providing good education. Also, students can simply
take good care of the laboratory equipment during laboratory classes.
6. Unpreparedness
a. Extend the time of preparation for the board exam

- Instead of a four to five month preparation for the board exam, extend it to six months
for the students to be prepared mentally and emotionally.
b. As a student: School organizations (such as the IECEP SLU Student Chapter) can make a
proposal to CHED and PRC stating the need for a longer preparation time for the ECE Board
17
Exam. Due to the wide coverage of topics that are in the board exam as required by RA 9292
Article III, Sec. 15, a four to five month preparation will be insufficient.
7. Time Constraint
a. Extend the time limit of the board exam

- With an extended time for the board exam, students will have a longer time solving
problems that require mathematical analysis. Math related problems are solved by each
student differently. Some students are overcome with anxiety which hinders their
analytical ability
b. As a student: School organizations (such as the IECEP SLU Student Chapter) can make a
proposal to CHED and PRC stating the need for a longer board examination time especially on
subjects requiring mathematical solutions. This proposal will be supported by studies that
state the average time math problems of different difficulties are solved by different students
with different approaches in solving such problems.
ACTION PLAN
SAINT LOUIS UNIVERSITY
BATCH 2018
Objective: SLU ECE Board Exam passing rate will increase to 100%
Person(s)
Strategies Activities Timeline
Responsible
CHED Memorandum regarding the track system of ECE
Separate the board exam Conduct a case study and propose to PRC Board January
questions according to the the Philippine to change the board Members, 2018 –
track or elective exam system me as a student March
2018
SLU Curriculum
18
a. Lessen the number of a.1. Propose to the ECE department Department June – July
units head and to the dean of SEA to revise Head, 2017
the ECE curriculum. School Dean,
SLU
Administrators,
me as a student
b.1. Suggest in the proposal to move a
b. Distribute ECE major major 3rd year subject in the first two Department
subjects evenly years of college to orient the students Head,
the School Dean,
SLU
Administrators,
me as a student
c.1. Make a suggestion that the allotted
c.Holidays and school days in a semester should Department
possibilities of class include an allowance for unforeseen Head,
suspensions must be class suspensions School Dean,
considered in allocating SLU
the topics for each Administrators,
semester for each subject me as a student
Instructor Factor
19
a.Hire qualified instructors a.1. Suggest to the SLU authorities to SLU June – July
Increase the minimum requirements Administrators, 2017
for hiring instructors School Dean,
Department Head
b.Encourage hired Recommend to the SLU authorities the SLU

instructors to improve following actions: Administrators, August
their teaching b.1. Provide more seminars and School Dean, 2017 to
performance and their trainings that will improve the teaching Department June 2018
relationship with their strategies of instructors Head, me as a
students b.2. Show the student evaluation student
results as soon as possible
b.3.Create more school events that will
encourage instructors and students to
interact with each other
b.4.Create assessment tests like
departmental examinations and
surprise class observations as part of
the instructor’s evaluation
Student Factor
a.Encourage students to a.1.Ask the parents and instructors of SLU Faculty August
be optimistic the examinees for their support to Parents of the 2017 –
them students, October
me as a student 2018
b.Encourage students to b.1.Studentjs must choose proper Me as a student

practice self-discipline review locations such as libraries to
avoid distractions
Review Center Factor
20
a.Inform students about a.Coordinate with board exam passers Board exam August
the quality of the review and create social media groups passers, 2017 –
centers as well as the composed of board exam passers who me as a student October
teaching methods used by will state their different opinions on the 2018
these review centers review centers they have enrolled to.
b. Request the school or department to

b.Provide a cheap conduct school-based board exam
alternative for students review for students who have financial Department June 2018
that will take the ECE problems Head, – October
board exam Dean of School, 2018
me as a student
Laboratory Equipment and Facilities Factor
a.Provide laboratory a.1. Request the department to School Dean, June 2017-
equipment that will satisfy purchase up-to-date equipment. Department July 2017
the needs of both students a.2. Help in the maintenance and repair Head,
and instructors of the laboratory equipment SLU
Administrators,
me as a student
b.Hire competent Suggest to the SLU authorities the June 2017-
laboratory technicians following actions: School Dean, July 2017
b.1. Conduct seminars that are Department
specifically for laboratory technicians Head,
b.2.Increase the minimum SLU
requirements for hiring laboratory Administrators,
technicians. me as a student
c.1. Request thorough orientations to August

c.Enhance the knowledge students who will be using the 2017-May
of students about the equipment and facilities. With School Dean, 2018
laboratory equipment and orientations, students will be more Department
facilities mindful of taking care of these Head,
equipment and facilities. me as a student
Unpreparedness
21
Extend the time of Together with the first concern of PRC Board January
preparation of the board revising the entirety of the board exam Members, me as 2018 –
exam rules, recommend also to extend the a student March
board exam time of preparation 2018
Time Constraint
Extend the time limit of Together with the first and second PRC Board January
the board exam concerns of revising the entirety of the Members, me as 2018 –
board exam rules, recommend also to a student March
extend the board exam time time limit 2018
per subject
CASE STUDY FOR FIELD TRIPS

A field trip is a journey by a group of people to a place away from their normal environment. The
purpose of the trip is usually observation for education, non-experimental research or to provide
students with experiences outside their everyday activities. In the view field trip, there are certain issues
and concerns that are raised and surround the matter. Some issues and concerns are to be discussed in
this presentation with the solutions following these issues and concerns.
Field trips can be and will be costly; it needed a certain amount of money for the student to afford
the field trip. As long as the students pays the said payment, the student now expecting that they shall
learn something after the field trip, in most cases to have fun. The organizer themselves set course of
destination throughout the field trip. The question is what are those destinations? Do they have enough
time to visit those planned destination? Is the time allotted for visiting in the certain company, facilities,
and sites enough that they will somehow learn something? Safety of the students are also in the line in
field trips for they will be travelling to various places, different locations, accident prone area and other
factor that will contribute to the said safety.

According to CHED memorandum order no. 17 series of 2012, article 2, section 4: “Educational
Tour is an extended eduacational activity involving the travel of students and supervising faculty outside
the school campus which is relatively of longer duration usually lasting for more than one day and
relatively places of destination than a field trip. Field trip is an educational activity involving the travel of
students and supervising faculty outside the school campus but is of relatively shorter duration usually
lasting for only one day and with fewer places of destination.”
1. Cost
22
The cost of the field trip in Electronics and Communication Engineering department is said to be
ranging from 14,000 Php to 20,000 Php. Which are only a field trip according to the CHED memorandum
order, and that field trip also only last days or less than a week. The payments involve expenditure for
transportation, for the organizers, for foods, entrance fee to some companies and/or facilities and for
other field trip miscellaneous. Due to the need of money field trips are limited by how much money will
be spending. Many of the students cannot afford the field trips, and sometimes the field trip is essential
for the students so that they will have a background in what are the lessons and discussion in class is how
they are applied to the fields.
2. Destination
Destination of planned course of the field trip can be time and schedule relevant. Some of the
planned destinations are not covered in the field trip due to the limited time and the changing of the
schedule due to company, facility or sites not being available during the duration of field trips.
3. Safety
“MANILA, Philippines - A school field trip turned into a horrific tragedy yesterday morning in
Tanay, Rizal, with at least 15 people killed and 40 college students injured. At least 14 college students
and the bus driver died when their tourist bus smashed into an electric post along a curved road in
Barangay Sampaloc in Tanay. Senior Supt. Randy Peralta, Rizal police director, said the students were on
board a Panda Coach bus with plate number TXS 325. They left Bestlink College of the Philippines in
Novaliches, Quezon City at 6:30 a.m. and were on their way to Sacramento Adventure Camp in Tanay for
medical and survival training as part of the National Service Training Program.” By Cecille Suerte Felipe
and Non Alquitran, The Philippine Star. The news is a sign that accidents cannot be predicted, putting the
life of students and field trips in danger. The safety of the field trip participants is also a factor in field trips
taking.
SOLUTIONS
1. Cost
As stated in CHED memorandum order no. 17 series of 2012, article 6, section 10: “As much as
practicable, destination of educational tour and/or field trips should be near the concerned HEI to
minimize cost.”
As stated in CHED memorandum order no. 17 series of 2012, article 5, section 8: “For students
who can not join the eduacational tours and/or field trips, they shall be given parallel school activity which
provides similar acquisition of knowledge of the required practical competencies and achieves other
learning objectives. Learner with special needs such as Persons with Disabilities (PWDs) shall be given due
consideration.”
2. Destination
23
As stated also in CHED memorandum order no. 17 series of 2012, article 6, section 10: “Be guided
by CMO 11, s. 1997 for the places where they should visit among others, the registered museums, cultural
sites and landmarks which should be in line with the objectives of the educational tours and/or field trips.”
Visit places that are only related to the course or study, places which are near to the institution and are
related or the same to the intended place.
3. Safety
“The Commission on Higher Education (CHEd) is set to issue by June a joint circular expanding the
coverage of policies and guidelines on field trips to all out-of-classroom activities of higher education
institutions to ensure the safety of students.
In an interview, CHEd Commissioner Prospero de Vera III said the circular, expected to be released
next month, was crafted with the Land Transportation Office, the Department of Tourism and the Land
Transport Franchising and Regulatory Board.
The circular will update CHEd’s guidelines on field trips by stretching the regulatory role to the
other three agencies and broadening the coverage to all local activities outside the campus, including on-
the-job trainings (OJTs), said De Vera.” By Jocelyn R. Uy, Inquirer.net.
4. Others
As stated in CHED memorandum order no. 17 series of 2012, article 7, section 20: “It shall be
unlawful for an HEI employee to personally profit from an educational tours and/or field trips. HEI
employee who violates this section may be terminated for Grave Misconduct.” The employees organized
the field trips shall be knowledgeable of the said section of the memorandum order of CHED.
CASE STUDY FOR ON THE JOB TRAINING / INTERNSHIP

Student enrolled in Bachelor of Science in Electronics and Communication Engineering are
required to undergo on the job training or internship. Some of the students lacks of incentive or have no
incentive in taking the internship. They see ojt as tiresome event, not that the company they will be
working is not that good in their standard but the processes of ojt in SLU. The ojt requires tuition fee that
is more expensive than the other major subjects.

An internship is a period of work experience, offered by an organisation, usually lasting for a fixed,
limited period of time. They are typically undertaken by students and graduates looking to gain relevant
skills and experience in a particular field.
24
Employers frequently use these placements to assess a student's or graduate's capability and
often recruit employees from their interns rather than advertising their vacancies externally. The
Association of Graduate Recruiters (AGR) Annual Survey 2016 revealed that 36% of graduate intakes were
comprised of previous interns, which is up from 31% in 2015. You should therefore apply for an internship
which you have a real interest in.
1. LACK OF INCENTIVES
The cause of lacking of incentive of the students are the process of taking the ojt subject and to
the company they will be applying. Students are the one who will process their application in their chosen
company. They are the one to choose in what company they are going to apply, in effect some of the
students may not have slots available to the company they prefer. In running papers they are going back
and forth to the department head of ECE department, which is the busiest person in the faculty of ECE.
There are times that students are not entertained in times that they are available to run their papers, so
they will have to come back again some time.
2. COSTLY TUITION FEE FOR OJT ONLY
Just this short term of 2017 in SLU many student have taken their ojt subject. Many of the students
complained about the tuition fee when ojt subject is the only subject they enrolled. It reaches more than
7,000 Php and is greater than the tuition fee on regular subjects.
SOLUTIONS
1. LACK OF INCENTIVE
The school must help their student in developing their skills as to support their academics. The
school shall provide right service for their students. In ojt the school should be the one organizing the ojt
of students. The school is suggested to distribute their students accordingly to their preferred company
they will be taking up their ojt subject, so that they will be able to come up with more organized processing
of the ojt in SLU. It is suggested that other faculty should handle the ojt subject other than the department
head.
2. COSTLY TUTION FEE FOR OJT ONLY
The school should declare a just right amount of tuition fee that conforms with the ojt subject
only. If the value cannot be changed the system of taking ojt is suggested to be change. As cited in the
previous solution.
25
APPENDIX
THE IP COALITION REPORT I:
COPYRIGHT IN THE PHILIPPINES 2004
The IPC Philippine Report Series
26
November 2004
27
A Report Written Under a Study Grant from Microsoft Philippines to
Upecon Foundation
In cooperation with the Intellectual Property Coalition of the Philippines
28
29
PREFACE
The intellectual property rights (IPR) concerns have been gaining popularity internationally, but intensive
studies on IPR issues have not yet been fully developed in the Philippines. In response to this need for
information, the Intellectual Property Coalition (IPC), in partnership with the UPECON Foundation,
conducted this analysis on the protection of intellectual property rights in the country. The IPC is the
leading federation of IP Rights Stakeholders and Organizations in the Philippines, and is composed of the
following organizations, namely: COMPACT; Filipino Society of Composers, Authors, and Publishers
(FILSCAP); Philippine Association of the Recording Industry Inc. (PARI); AVIDPHIL; Business Software
Alliance; Asosasyon ng Musikong Pilipino Foundation; Philippine Entertainment Industry Foundation, Inc.;
Brand Protection Association; KATHA; Movie Producers and Directors Association of the Philippines
(MPDAP), Philippine Software Industry Association, Inc. (PSIA), Quezon City Chamber of Commerce and
Industry, Inc., American Chamber of Commerce and Industry, and Microsoft, Inc.
The IPC Report focused on the issue of IPR protection in the country, specifically in the area of copyright.
First, brief profiles of the copyright-based industries in the Philippines, namely the software,
music/recording and video industries, were presented using statistical data from government and private
agencies. Included in this section are the analyses of the effects of piracy on the economic performances
of the identified industries.
The second part of the research, which is considered as the heart of the study, examined the state of IPR
protection. An “Intellectual Property Rights Protection Model” was devised to serve as a framework for the
analysis. The model identified three cornerstones of IPR protection, namely: 1) Policy and Regulation, 2)
Enforcement and Adjudication, and 3) Public Information and Education Campaign. Under the Policy and
Regulation section, the different IPR laws and regulations in the Philippines were determined, including
the most recent ones that have been passed in the Philippine legislation. This section encompasses laws
concerning copyright and patents, and other legislative measures regarding border controls and
electronic commerce. Meanwhile, the different IPR enforcement activities, by both the government and
private sectors, were presented under the section Enforcement and Adjudication. Here, the relationships
between the piracy rates (software, music and video piracy rates) and the enforcement activities were
analyzed. Lastly, the section on Public Information and Campaign identifies the various efforts of the
government, IPR stakeholders, and private organizations, in educating and informing the public on IPR
issues and concerns.
The paper also presented “Insights on the Intellectual Property Rights Protection” discussing the
interrelationships between and among the legal, social, and economic aspects of the endeavor. The legal
side involves the laws governing the IPR and the judicial processes involved in trying IPR cases. These
are the de jure institutional arrangements wherein the government is the recognized main authority on the
subject. The social side of IPR deals with the social attitudes and customs towards the legitimacy of the
rights on intellectual property. In this section, it was stressed that in intellectual property rights, or any
property rights issue for that matter, one vital concern is the acceptance of society that intellectual
property is an asset in which rights can be allocated to. That it is an income stream that needs
management, hence, the provision of the rights. It is significant, therefore, that this knowledge or thinking
be ingrained in the value system or norms of the society. On the economics side, the demand and supply
of intellectual property assets were discussed.
In general, the study determined the importance of intellectual property rights protection in the
Philippines; and how the government, as well as the private sector, responded to the need for it.
30
BACKGROUND
Before discussing the issues covering the intellectual property rights protection, one must first understand
the concept of property rights itself and the intricacies involved in the system of its implementation. A
property right is the authority to undertake particular actions related to a specific field. It is an instrument
of society; and derives its significance from the fact that this right helps man to form expectations that he
can reasonably hold in his dealing with others. The said expectations find expression in the laws,
customs, and traditions of a society. An owner of property rights holds the consent of his fellowmen to
allow him to act in particular ways.
As Schlager and Ostrom (1992) stated, there are two components vital to the understanding of property
rights: one is the authority scheme and the other is the specific domain. For every right a person holds,
rules exist that authorize or require particular actions in exercising that property right. The rules pertain to
the instructions that create authorization. For property rights, there are two relevant rule structures,
namely, the operational rules and collective-choice rules. Operational rules define who can participate in
which situations, what participants may, must or must not do, and the reward and punishment scheme
involved in the actions (Tang, 1991, as cited by Cuevas, 1994). On the other hand, collective choice rules
specify who may participate in changing the operational rules and the level of agreement required for their
change (Schlager and Ostrom, 1992).
Both the operational and collective choice rules form a system called institutional arrangements. Ostrom
(1990) defined these to be the set of working rules that are used by society to determine: 1) who is
entitled to make decisions in some arena, 2) what actions are permitted or constrained, 3) what
aggregation rules will be used, 4) what processes will be followed, 5) what information must and must not
be provided, and 6) what pay-offs will be given to individuals depending on their actions (as cited in
Cuevas 1994). Accordingly, institutional arrangements of property are a public system of rules specifying
permissible and forbidden actions in relation to ownership, use rights, responsibilities, and obligations of
individuals and groups. They include mechanisms for defining and enforcing property rights; hence, they
involve both the formal procedures and social customs and attitudes concerning the legitimacy and
recognition of those rights (Feder and Feeny, 1991). Therefore, like the rules that comprise it, an
institutional arrangement's main function is to define one individual vis-à-vis others, both within the group
and with individuals outside the group (Bromley and Cernea, 1989).
Institutional arrangements are classified into two, the de jure and de facto arrangements - the former
being the rules and regulations recognized and legitimized by the state, while the latter are arrangements
that have evolved into norms that have been accepted and affirmed by the people in the community and
society as laws. It is perceived that between the two, the de facto system has a stronger impact on
society's behavior. A de facto arrangement is an established and stable phenomenon which everyone
conforms to, and which everyone expects others to obey.
With this discussion, how do we now deal with the issues involving intellectual property rights?
Vital to this concern is the acceptance of society that intellectual property is an economic asset in which
rights can be allocated to. That it is an income stream that needs management, hence, the provision of
the rights. As an asset it is a good and/or service with “definite economic value, and with implications for
trade and competition in the market.”1
This leads us to the importance of protecting intellectual property rights. Safeguarding the rights of
scientists, artists, and other holders of IP encourages more intellectual property creations. This means
1
“Intellectual Property and Economic Growth with Special Attention to Copyright and Related Rights”. Lecture prepared by Dr. Mihaly
Fiscor, Director, Center for Information Technology and Intellectual Property (CITIP), Budapest for the WIPO-ESCWA Arab Regional
Conference on Recent Developments in the Field of Intellectual Property, Beirut, May 5 and 6, 2003.
31
more inventions, innovations, discoveries, and scientific discussions that will develop our indigenous
science and technology (Optical Media Bill FAQ Primer). In addition, the creative geniuses of Filipinos in
the fields of arts and music are also promoted to emerge and thrive. Therefore, by protecting the IPRs,
we not only develop our economy though the economic revenues generated by the endeavors, but we
also support the growth of our culture.
Figure 1. CONCEPTUAL FRAMEWORK:

Industry Inter-relationship in the Economy
Pharmaceutical
Industry
Biotechnology
Chemical Industry
Industry
Licensing
Patents
Licensing Licensing
Patents Patents
Copyright Movie
Manufacturing Trademarks Industry
Industry Patents
INTELLECTUAL
PROPERTY
RIGHTS
Copyright Copyright
Licensing
Information
Technology Copyright Music Industry
Software Industry
Literary/
Publishing
Industry
IPR protection also allows efficient and effective technology transfers. A country would only be willing to
export its technology if it is confident that it will be able to receive the just economic rents. Numerous
studies have concluded a direct relationship between IP protection and foreign direct investments. 2
Hence, foreign investment decisions are also dependent in the state of IPR infringements in a country.
With the growing globalization and rapid development in the international distribution systems, intellectual
property assets are of central importance in many industries. These industries dependent on intellectual
property rights are also becoming significant contributors to the economies of many nations. To stress
this point, the framework presented in Figure 1 shows that the various industries in the economy are inter-
related through the institutional arrangements that govern the intellectual properties/resources of the
players. As earlier defined, these institutional arrangements include the mechanisms for defining and
enforcing property rights; that is, they include both the formal procedures and the social customs and
attitudes concerning the legitimacy and recognition of those rights. Through these institutional
arrangements, different industries in the economy are perceived to be major players in protecting and
benefiting from intellectual property rights. These rights are the determining factors in claiming economic
rents from their intellectual assets.
2
Such studies include: 1) “The Role of Intellectual Property Rights in Encouraging Foreign Direct Investment and Technology Transfer”
by Keith E. Maskus which was prepared for the Conference entitled: Public-Private Initiatives After TRIPS: Designing a Global Agenda,
Brussels, July 16-19, 1997; 2) “Composition of Foreign Direct Investment and Protection of Intellectual Property Rights: Evidence from
Transition Economies by Beata K. Smarzynska, World Bank, 2002; 3) “How Strongner Protection of Intellectual Property Rights Affects
International Trade Flows by Carsten Fink and Carlos A. Primo Braga.
32
With the significance of IPR in industries, countries move to protect these rights. Such movements include
the creation of international copyright treaties like the Agreement on Trade Related Aspects of Intellectual
Property Rights (TRIPS), and the formation of international organizations like the World International
Property Organization (WIPO) that advocate intellectual property rights (IPR) protection. In fact, the
TRIPS agreement has taken a pivotal role in fighting piracy worldwide as it sets the minimum standards
for IP protection among countries. Meanwhile, the WIPO has chartered the promotion of people's
creativity and invention. It promotes the development of IP laws and administers international treaties in
order to generate an environment conducive for intellectual property growth. 3
The Philippines has long recognized the significance of IPR protection, especially with the country's
relevant pool of talents in the fields of science, information technology, biotechnology, engineering, arts,
and music. It has been a member of the Berne Convention (Literary and Artistic Works) since 1951; Paris
Convention (Industrial Property), 1965; WIPO Convention, 1980; Rome Convention (Performers,
Producers and Phonograms and Broadcasting Organizations), 1984; TRIPS Agreement, 1995; PCT
(patents), 2001; WCT (WIPO Copyright Treaty), 2002; and the WPPT (WIPO Performances and
Phonograms Treaty) in 2002.
However, even with these efforts, the state of IPR infringements in the country continues to be a serious
concern. In fact, the Philippines has remained under the Priority Watch List of the U.S. Trade
Representative (USTR) “2004 Special 301” Report4 on global intellectual property protection.
At present, among the rampant IPR infringements in the country are: 1) optical media piracy, 2) copyright
and trademark violations of all types, 3) importation of counterfeit merchandise, 4) software piracy of all
types, and 5) bootleg cable television. The aforementioned are the ones that have the immediate
attention of the government and private sectors in the Philippines. Meanwhile, the affected industries of
these IPR violations are: 1) Software and IT Services, 2) Music and Recording, 3) Movie and Video, 4)
Literary and Publishing, and 5) Merchandising/Manufacturing Industries.
Hence, with the increasing significance of intellectual property assets and IPR protection in the economy
of the Philippines, this paper presents an assessment of the IPR protection in the country. Specifically,
the study:
 profiles the IPR dependent businesses such as the business software, music and movie
industries;
 determines how piracy affects or influences the performance of the identified industries;
 estimates the music and video piracy rates in the country;
 identifies the efforts of both the government and private sectors in protecting intellectual property
rights;
 analyzes how the IPR protection endeavors influence the performance of the IPR based
industries; and
 assesses the effectiveness of the IPR protection efforts in lessening piracy in the country.
The output of the study provides a profile of three of the copyright dependent industries in the Philippines.
This is a step towards organizing information in the IPR system. Indicators to monitor the sector,
specifically the copyright aspect, were developed; therefore, producing concrete and quantifiable facts
that may be used to assess the sector’s significance, growth, and economic contributions. Moreover, as
3
For more information on the WIPO, visit www.wipo.org
4
The Special 301 Report addresses significant concerns with respect to its trading partners, which includes the Philippines. The report
notes that the United States will consider all options, including but not limited to initiation of dispute settlement consultations with
countries that do not appear to have implemented fully their obligations under the WTO Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS Agreement).
33
this study evaluates the individual sector’s performance, information that will support the creation of laws
and regulations for IPR protection, are made available.
Meanwhile, the assessment of the IPR protection activities, and their effects on the state of piracy in the
country, provides useful information for evaluating present efforts and planning for future IPR protection
endeavors.
INDUSTRY PROFILES
SOFTWARE INDUSTRY
The cumulative number of establishments in the Philippines registered with the SEC, as engaged in
providing IT-related goods and services, grew by 61 percent between the 1996 and 1998. The number
nearly doubled from 1,739 companies in1999 to 3,311 in 2002 (Table 1). These establishments are those
in the business of providing hardware consultancy, software consultancy, software development, data
processing and conversion, database activities, other computer-related activities, and the maintenance
and repair of office, accounting and computing machinery. To better understand the establishment
classifications, Table 2 presents the descriptions as provided by the 1994 Philippine Standard Industrial
Classification (PSIC)5.
The number of companies under the software consultancy and development classification grew by almost
300 percent in just three years, from 1999 to 2002. This showing indicates that the software and related
IT services sub-sector is a thriving industry, and has attracted a substantial number of players in the
business. Similarly, the establishments involved in other computer related services significantly expanded
in number, from 65 in 1999 to 852 in 2002. Also, those companies undertaking database activities and
data processing and conversion, climbed by 234 percent and 2 percent, respectively. However, the
number of establishments under the hardware consultancy category has been cut by 74 percent.
Table 1. Number of IT Establishments/Companies in the Philippines:

1996-1999 and 2002
Industry Description 1996 1997 1998 1999 2002
Hardware Consultancy 143 37
Software Consultancy 87 219
Software Development 99 523
350 492 683
Data Processing and Conversion 1,203 1,228
Database Activities 120 401
Other Computer Related Activities 65 852
Maintenance and Repair of Office, 510 594 702 22 51
Accounting and Computer Machinery
TOTAL 860 1,086 1,385 1,739 3,311
Notes: 1996-1998 data sources are the Annual Survey of Establishments 1996-1998
1999 and 2002 data source is the Securities and Exchange Commission, as cited by the
Bureau of Trade and Promotions, Department of Trade and Industry
5
The Philippines Standard Classification (PSIC) is a classification of all economic activities in the country. It was developed for use in
the classification of establishments according to the type of economic activity they are engaged in. It is intended to serve as a
framework in the collection, compilation, and analysis of data on economic activities to secure uniformity and comparability of statistics
presented by various government and private agencies.
34
New Investments and Employment
The Philippines has four investment promotion agencies (IPAs), which register new investments. These
are the Philippine Export Zone Authority (PEZA), Board of Investments (BOI), Subic Bay Metropolitan
Authority (SBMA), and the Clark Development Corporation (CDC). The succeeding discussion focuses
only on new investments registered with the Bureau of Investments.
Table 3 presents the levels of new investments and the jobs these created in the IT Services industry, as
reported by the Board of Investments (BOI). From 1998 to 2003, the Software and Related IT Services 6
sub-sector accounted for an average of 52.3 percent of the total BOI registered new investments in the IT
Services sector. Software and Related IT Services contributed most to the sector in both 1998 and 1999,
with a 100 percent investment share each year, and the least in 2002, at 11.2 percent. The sub-sector
registered growth rates of 53 percent, 34 percent, and 38 percent in 1999, 2000, and 2001, respectively.
However, the level of new investments slid by 54.4% in 2002 and further declined by 28.5% in 2003.
Table 3. NEW INVESTMENTS AND EMPLOYMENT IN THE IT SERVICES SECTOR: 1998-2003

(Board of Investments Registered Projects)
In thousand pesos
YEAR Software and Related IT Call Centers and Related IT
Services Communication Services Other IT Services Total New IT Total New
Investment Employment Investment Employment Investment Employment Investments Employment
1998 141,789 1,000 0 0 0 0 141,789 1,000
1999 216,944 2,173 0 0 0 0 216,944 2,173
2000 960,520 4,122 143,295 150 496,891 542 1,600,706 4,814
2001 1,327,146 4,134 2,631,733 6,092 7,002,557 2,165 10,961,436 12,391
2002 605,029 1,478 1,896,030 7,762 2,904,203 1,029 5,405,262 10,269
2003 432,675 515 767,101 3,629 225,796 1,824 1,425,572 5,968
Source: Bureau of Investments
Notes: Software Design and Development includes IT service firms engaged in system and application service provision. Other IT
Services Include Financial, Business Process Outsourcing, Medical Transcription , Data Entry Services, and IT-Enabled Services.
The total new IT Services investments took a dive in 2002, at PhP5.40 billion, from the PhP10.96 billion
figure registered in 2001. On the Call Centers and Related IT Communication Services category, only six
projects were recorded in 2001. Though the number of projects rose to twelve (12) in 2002, the top
investment value was only worth P481.66 million. This is relatively small compared to the biggest single
investment in 2001, valued at PhP1.46 billion. However, the Other IT Services sub-sector experienced
the steepest slide in the number of projects registered, from 19 in 2001 to only five (5) in 2002. 7 The
decline further continued in 2003, at P1.42 billion. Like in 2002, lower new investments were experienced
in all the three sub-groups.
6 Thissub-sector includes software development, application and system software services, web designs, database designs, and
computer animation.
7
Table 1 data is on cumulative number of establishments. Accordingly the observed increase of establishments in 2002 may have
occurred particularly in 2000 and to some extent 2001, and this is consistent with the observed rise in new IT investments in those
years, respectively. Table 1 doesn’t have any information about the increase of the number of establishments between 2001 and
2002. It is possible that rise in number of establishments from 2001 and 2002 would have also declined compared to that in 1999 to
2000 and 2000 to 2001.
35
One of the factors that may have affected the investment decisions in 2002 was the poor performance of
the whole ICT sector in 2001. A P7.97 billion loss was posted by the top 500 IT companies during the
year, and the loss on sales was one centavo per peso. The loss performance of the industry continued in
2002, though at a lesser extent than in the previous year. As the Annual Sourcebook of the Philippine
Information Technology Community reported (IT Resource Philippines, 2003):
Sales of nearly half of the top IT companies dwindled in 2002, while many of the firms took a
turn for the worse as they ended the year with negative bottom lines. Both hardware and
software spending remained weak as most users took a cautious cost cutting approach. Price
competition among vendors continued to restrain revenue growth, while fluctuations in the
peso-dollar rate resulted in huge foreign exchange losses for manufacturers and suppliers.
Burdened by these unfavorable developments, the IT industry was again caught in a
downward spiral in 2002.
The country’s top 500 IT companies registered an aggregate loss during the year of P7.25 billion. A third
of the companies experienced excess in expenses over revenues, most of which were the
telecommunications and networking, on-line services, and electronic industries.
Table 3 also shows that the total number of

Table 4. Employ ment Per Million New Inv estment in IT Serv ices
jobs created by the software industry in 2003
Sector, by Subsector: 1998-2003 was estimated by Board of Investments at
(Board of Inv estments Registered Projects) 515 jobs. Another estimate using data from
the four investment promotion agencies puts
Call Centers and
the new employment in the industry in 2003
Softw are and Related IT
at 2,775. Thus it would seem that the BOI’s
Related IT Communication Other IT
estimate would only account for nearly 19
Serv ices Serv ices Serv ices percent of the total jobs the industry created
1998 7.05 - - in 2003. Call centers created 8,079 jobs, of
which BOI registered investments
1999 10.02 - -
accounted for 3,629 jobs or 44.92%. The
2000 4.29 1.04 1.09 other IT services contributed 1,939, 1,824 of
2001 3.11 2.31 0.31 which were reported by the BOI. The total
new employment generated by new
2002 2.44 4.09 0.35
investments in the software, call centers and
2003 1.19 4.73 8.08 other IT services summed up to 12,793, and
Source: Bureau of Inv estments of this, data from the BOI accounted for
nearly 47%.
Note: Softw are Design and Dev elopment includes IT serv ice firms
engaged in sy stem and application serv ice prov ision
The BOI figures show that the Software and
Other IT Serv ices Include Financial, Business Process
Related IT Services sub-sector has generally
Outsourcing, Medical Transcription , Data Entry Serv ices, among
created more jobs per million investment
than the other IT categories from 1998-2001
(Table 4). In 2000, a million peso investment in Software translated into four (4) employees, while only
about one was registered in each of the other categories. The following year, three (3) jobs were provided
per million peso investment in the Software and Related IT Services classification, while two people were
employed in the Call Center and Related Communication Services sub-sector. On the other hand, it took
three (3) million worth of investments to generate an employment in the Other IT Services category.
In 2002 and 2003 respectively, the Call Center and Related IT Communication Services and Other IT
Services sub-sectors generated the most employment for every million investment.
36
It has been pointed out that call centers operate at least two to three shifts a day. 8 A million peso
investments can support about four workstations, each manned by a one person. Given this, the
estimates of jobs per million peso investments in Table 4 for the call centers would seem to understate
the actual number of jobs that may be created by the new investments. If the additional work shifts are
considered, these estimates may be adjusted upwards by a factor of 2 to 2.5. This adjustment would
seem to be corroborated by information that in 2003 about twenty thousand graduates in Metro Manila
took jobs in the various call centers of the country.
The Philippine Information and Communication Technology (ICT) sector received a total of PhP34.1
billion new investments in 2003. These investments were registered in the four major IPAs, namely, the
Philippine Export Zone Authority (PEZA), Board of Investments (BOI), Subic Bay Metropolitan Authority
(SBMA), and the Clark Development Corporation (CDC). Of this value, 68.0 percent came from the
manufacturing sub-sector; 19.4 percent, from the IT Services 9; 8.6 percent from the Services; 4.0 percent,
from Telecommunications; and a minimal 0.02 percent from Trade.
The IT Services sub-sector recorded a PhP6.6 billion approved new investments during the year (Table
5). The largest amount of new investments was from the Other IT Services 10, at PhP2.6 billion, or 39.2
percent. This is followed closely by the figures from the Call Center and Related Communications
Services category, with a 38.2 percent share, and the Software and Related IT Services, at 22.6 percent.
Table 5. Total Approved Investments in IT Services by Type of Investor: 2003

(Registered in PEZA, BOI, SBMA and CDC)
Description Total Investments Foreign Local
Software and Related IT
Services 1,495,578,099 1,052,805,927 442,772,172
Call Center and Related

Communications Services 2,523,103,410 2,323,891,825 199,211,585
Other IT Services 2,587,340,000 377,417,842 2,209,922,158
TOTAL 6,606,021,509 3,754,115,594 2,851,905,915
Sources: PEZA, BOI, SBMA, CDC
Note: Other IT Services Subsector includes Data Processing and Conversion, Medical
Transcription Services, Business Process Outsourcing and the like.
The bulk of new investments in the Software and Related IT Services classification, 70.4 percent, were
made by foreigners. This percentage share is more than enough to dictate the investment performance of
the category. Of the PhP1.5 billion new investments in 2003, only PhP442.8 million were local. At least
two million local investments were registered per million foreign investments during the year.
Foreign investments also had the lion’s share, 92.1 percent, in the new investments in Call Center and
Related Communication Services. Conversely, the local investments made up majority, 85.4 percent, of
the investments in the Other IT Services group.
IT Human Capital
Through the years, the IT industry has been attracting people, as evidenced by the increasing number of
students that engaged in the IT related discipline. During the Academic Year 1994-1995, the number of
8
The source of information is Ms. Emma Teodoro, Philippine Software Industry Association.
9
Software and Related IT Services investments are accounted in the IT Services Classification
10
Other IT Services Subsector includes Data Processing and Conversion, Medical Transcription Services, Business Process
Outsourcing and the like.
37
students that enrolled in Mathematics and Information Technology was 5.2 percent, or 97,853, of the total
number of tertiary students that enrolled during the year. In School Year 2000-2001, the figure increased
to 218,675, or 8.3 percent of the total (Table 6).
Table 6. Mathematics and Information Technology Enrollees and Graduates: 1995-2001

Academic Year TOTAL Math and % of MIT Total Graduates Math and % of MIT
Enrollees Information Enrollees to Information Graduates to
Technology Total Technology Total
Enrollees (MIT) Graduates
1994-95 1,871,647 97,853 5.23 312,667 21,338 6.82

1995-96 2,017,972 130,859 6.48 328,120 19,494 5.94
1996-97 2,061,300 153,505 7.45 335,257 25,055 7.47
1997-98 2,067,965 166,329 8.04 342,551 27,636 8.07
1998-99 2,207,584 183,267 8.3 352,827 31,144 8.83
1999-00 2,535,614 211,306 8.33 370,528 26,888 7.26
2000-01 2,637,039 218,675 8.29 385,349 28,231 7.33
Note: AY 1994-95 to 1996-97 are actual values, 1997-98 onwards are preliminary data.
Source: Commission of Higher Education
On the other hand, the number of graduates under the discipline reached 28,231 in 2001 from 21,338 in
1995. This composed 7.3 percent of the new graduates during the year.
In addition, enrollment in higher IT and Related Programs had been climbing from AY 1998-1999 to 2001-
2002 (Figure 2). The students analyzed had registered in either of the following disciplines: Computer
Science, Computer Technology, Information and Computer Science, Computer Applications, Information
Management, and Information Technology. A greater part of the graduate students enrolled in the
Master’s Level during AY 1998-2002, while twelve people registered in the Doctorate program during the
AY 2001-2002.
The total number of enrollees reached 2,579 in AY 2001-2002, a 228.54 percent rise from the 785 figure
posted in AY 1998-1999.
38
According to the Bureau of Exports and Trade Promotions (BETP), the Philippines has over 567,802 IT
labor force as of 2002, 99% of which are college graduates. They are described as professionals
“proficient in working on mainframes, minicomputers, and microcomputers 11”, and who are also known for
their “technical and business skills for ICT projects.12”
The Philippines also pride itself with high performing I.T. professionals with excellent industry track
record13.
The credibility and expertise of our IT professionals are recognized worldwide as proven by the satisfied
customers in the fields of advertising, banking, communication, defense, education, finance, government,
health, insurance, manufacturing, mining, public utility, realty, science and research, shipping stocks, and
trading. Manila is recognized as a major outsourcing center for companies in the U.S., Japan, and Europe
(Information Technology Service Profile, www.tradelinephil.dti.gov.ph/betp).
Table 7. Comparison of Know ledge Jobs Category Ranking of the

Philippines: 1999 and 2000
Know ledge Jobs 2000 results 1999 results
Qualified engineers 10 4
Availability of IT skills 9 2
Availability of Senior Management 3 1
Higher Education Enrollment 22 19
Source: Rubin Systems Inc.

Note: The Philippines is ranked among 47 countries.
The country ranked 8th among 47 countries in the Knowledge Jobs14 category of the 2000 Global New
Economy Index 15 (GNEI). Ranking in this category is determined by the performance of a country based
on the following factors: qualified engineers16, availability of IT skills17, availability of senior
management18, and higher education enrollment (see Table 7).
According to the analysis made by the Rubin Systems Inc., the Philippines is “a global leader in the
Knowledge Jobs category, with an impressive pool of engineers, workers skilled in information
technology, and competent managers.” Moreover, “the nation performed well in education, an important
component of the Knowledge Jobs category. Education helps create and cultivate the knowledge workers
of the next generation, and a good education system is an invaluable asset in the knowledge based New
Economy.”
In 2003, the Philippines ranked 12th in same category of the Global Information Technology Economy
Index19 (GITEI). This index ranks 48 nations based on the results of a composite index comprising 33
11 BETP Information Technology Services Profile at www.tradelinephil.dti.gov.ph/betp

12
“Filipino IT Workers Rank High in Survey”. Philippine Daily Inquirer, June 1, 2002.
13
BETP Information Technology Services Profile at www.tradelinephil.dti.gov.ph/betp
14 Knowledge jobs and information based jobs are related to information, communications and/or engineering, with an increasing
need for qualified senior management.
15
The factors that comprise the GNEI are organized into the following categories: Knowledge Jobs, Globalization, Economic Dynamism
and Competition, Transformation to a Digital Economy, and Technological Innovation Capacity. For more information, visit
www.forecastcenter.com/public/guest/GNEI.htm
16
The availability of engineers in a country’s labor market.
17
The availability of qualified information technology workers in a country’s labor market.
18
The availability of competent senior managers in a country’s labor market.
19
The 2003 GITEI measures the technological, sophistical and global integration of 48 nations based upon the following six indicators:
Knowledge Jobs, Globalization, Enterprise Dynamism and Competition, Transformation to a Digital Economy, Technological
Innovation Capacity, and Visionary Government. The overall GITEI ranking is based upon a weighted value of a nation’s combined
scores in each indicator. It is also considered to represent an important measure of the economic strength, technological capabilities,
39
factors organized into the same categories that of the GNEI, with the addition of the Visionary
Government Category. The Knowledge Jobs category in this index slightly differs with that of the GNEI,
with the inclusion of the Science degrees 20 and University education21 factors in the formula.
Figure 3. Estimated Level of Employment in the

Softw are and Related IT Services Industry: 1999-
2002
60,000 52,110
45,629
50,000 43,727 41,210
40,000
30,000
20,000
10,000
0
1999 2000 2001 2002
Source: Author
These results show that the Philippines has a comparative advantage with regards to the quality of IT
professionals in the country. With the increasing number of people engaging in Math and Information
Technology Courses, and the relatively high ranking of Filipino IT professionals internationally, the sector
shows its potential employment significance to the country.
Meanwhile, the Software and Related IT Services industry has employed an estimated 22 52,110 people in
2002 (Figure 3). This approximation includes employment of establishments engaged in software design
and development, systems integration, and IT services such as animation and graphics, CAD/engineering
services, and the like. This figure is a 19.17 percent climb from the estimated number in 1999, of 43,727.
Moreover, this 2002 employment composed 9.18 percent of the total IT labor force (567,802) estimated
by the BETP during the year.
Software Piracy
Trends in Piracy
Software piracy in the Philippines had been declining for the five consecutive years, 1996 to 2000, based
on data in Table 8. Indeed, the Philippines recorded the largest rate decline among the countries in the
Asia/Pacific region in 1999-2000. For reasons that are explained below, piracy has been rising at least for
the period from 2001 to 2003.
According to the Business Software Alliance (BSA), the decline in piracy rate in 1997-1998 was primarily
attributed to the enactment of the new copyright law23 and the improved awareness on IPR in the country
and the ability and commitment of the national leadership to promote technological advancement and global economic engagement
for each of the 48 countries under consideration.
20 Percent of total bachelor’s degrees awarded in science and engineering.
21
Does/not meet the needs of a competitive economy.
22 Estimates were based on the regression analysis with sales/revenues as the independent variable used to project the level of
employment. Detailed employment estimation methodology is presented in the Appendix.
23
Intellectual Property Code of the Philippines in 1998
40
among the members of the judiciary (Computerworld, 1999) 24. The intensified enforcement of the law and
improving Intellectual Property protection also contributed to this decreasing trend. From 8,944 firms
being monitored by government agencies for IP Code Violations in 1998, the number increased to 14,876
in 2000. However, the number dropped by 1,192 from 13,684 in 2001, the year when the piracy rate in
the country started to increase.
Table 8. Software Piracy Rates in Asia/Pacific: 1996-2003

(In Percent)
Country 1996 1997 1998 1999 2000 2001 2002 2003
Australia 32 32 33 32 33 27 32 31
China 96 96 95 91 94 92 92 92
Hongkong 64 67 59 56 57 53 56 52
India 79 69 65 61 63 70 70 73
Indonesia 97 93 92 85 89 88 89 88
Japan 41 32 31 31 37 37 35 29
Korea 70 67 64 50 56 48 50 48
Malaysia 80 70 73 71 66 70 68 63
New Zealand 35 34 32 31 28 26 24 23
Pakistan 92 88 86 83 83 83 80 83
Philippines 92 83 77 70 61 63 68 72
Singapore 59 56 52 51 50 51 48 43
Taiwan 66 63 59 54 53 53 43 43
Thailand 80 84 82 81 79 77 77 80
Vietnam 99 98 97 98 97 94 95 92
Other Asia/ Pacific 86 83 74 71 75 70 69 76
TOTAL
Sources:ASIA/PACIFIC 55 Software
Eighth Annual BSA Global 52Piracy Study,
49 June 2003;
47 First 51 54and IDC55
Annual BSA 53
Global Software
Piracy Study, July 2004
Effects on Investments
Figure 4. Softw are Piracy Rates (1997-2003) and BOI

Registered New Investments in Softw are Development and
Related IT Services (1998-2003)
100 1400
1200
in million pesos
80
1000
in percent
60 800
40 600
Piracy Rat e % 400
20 New Investment s 200
0 0
1997 1998 1999 2000 2001 2002 2003
Sources: Business Softw are Alliance; Board of Inv estments
Based on BSA and BOI data, there is an apparent high negative 25 correlation26, of -0.87162, between the
levels of piracy and new investments in software development in the Philippines. Level of new
24 Ramos, G., “Piracy talk With Philippines’, October 28, 1999. Posted in www.cw.com.hk
25 As the software piracy rate in the country declines, the level of new investments in the software sector rises, and vise-versa.
26
Correlation is an analysis tool that is used to determine whether two ranges of data move together; 1) whether large values of one
set are associated with large values of the other (positive correlation), 2) or whether small values of one set are associated with large
41
investments quadrupled in 2000, when the piracy rate posted a 7 percentage point decline in 1999.
Similarly, investments in 2001 climbed by 38.2% when piracy rate dropped by 9 percentage points in
2000. On the other hand, the investment level decreased in 2002, when the Philippines posted a higher
piracy rate in 2001, of 63%, from its 61% rate in 2000. It further declined by 28.5% in 2003 as the rate of
piracy further rose to 68% in 2002 (Figure 4).27
Similarly, the level of new employment in the software sector rose as the software piracy rate dropped,
although at a decreasing rate. In 1999, it climbed by 117.3%; 2000, 89.7%; and 2001, 0.3%. Meanwhile,
the number of new hiring was cut by more than half in 2002, when piracy rate climbed to 63% in 2001
from 61% in 2000. Likewise, a drop in 2003, of 65.2%, in new employment was registered when piracy
rate further rose to 68% in 2002.
The same reaction to the piracy rates was observed for the total 28 IT services new investment and
employment levels during the years analyzed. From 1997-2000, when the piracy rates were decreasing,
total levels of new IT investments and employment continued to increase. The reverse occurred in 2002-
2003 when the piracy rates rose to 63% and 68% in 2001 and 2002, respectively. This means that the
whole IT industry, and not only the software development and service sub-sector, is affected by the
infringement in software copyright. However, correlation analysis showed that the intensity of the
influence of piracy rates on the level of investments is greater in the software sub-sector, at -0.81726,
compared to its effect on the whole IT industry where the correlation value is lower at negative 0.5224.
The said observations are consistent with the study29 conducted on the software sector in Mexico, which
stated that:
Looking across numerous countries, we find that as software piracy rates decline, IT
investment increases. Every 10 percent decline in the software piracy rate, e.g. from 70
percent to 63 percent, increases the IT investment share of GDP 13.4 percent, e.g. from 2
percent to 2.26 percent… Even modest success in providing stronger protection of IPR can
have a sizeable impact on IT investment and GDP.
The importance of effective IPR protection as a determinant to foreign direct investments is highlighted in
a recent study by Correa.30 The study examined the investment and IPR chapters of several bilateral
investment treaties (BITs). The author observed that these agreements have provisions that even go
beyond international standards such as those in the WTO’s TRIPS agreement. They incorporate the
"national treatment" principle without the exceptions provided for under international treaties.
Interestingly, the "most favored nation" clauses in BITs contribute to a global elevation of IPR protection
standards. These bilateral treaties are setting the standards for the highest protection of IPR. They
highlight how sensitive investors are to the protection of IPRs. Indeed, if negotiations on investment were
initiated in the framework of the WTO, for instance, pressure to replicate the highest levels of investment
protection for IPRs, as currently found in the bilateral treaties, can be expected, the study observed.
values of the other (negative correlation), or 3) whether values in both sets are unrelated (correlation near zero). A perfect direct
relationship produces a correlation co-efficient of +1.00; a perfect inverse relationship produces an r of -1.00. A co-efficient of 0 means
there is no relationship at all between the two variables.
27 Release of the piracy rate estimates has a one year lag. Current year's investment decisions will be based on previous year's
piracy estimates.
28 Includes all three subsectors namely: Software Development and Service, Call Center and Related Communication Services, and
Other IT Services. Includes all three subsectors namely: Software Development and Service, Call Center and Related
Communication Services, and Other IT Services.
29
“The Critical Role of the Software Industry in Economic Growth: Focus: Mexico” by Sallstrom and Damuth, 2003.
30
Correa, C. “Bilateral Investment Agreements: Agents of New global Standards for the Protection of Intellectual Property Rights?”
August 2004 in http://www.grain.org/briefings/?id=186.
42
With the observed reaction of the IT market to the levels of software piracy, a framework on the
relationship between intellectual property protection and investment decisions is thus formulated (Figure
5).
The framework shows that the creation of IPR laws is a tool by which the Intellectual Properties of
economic agents are protected from infringements. Condition or extent of IPR protection 31, in turn,
provides economic entities with information regarding the probabilities of return or forecasts of their
activities.
One of the major concerns of IT investors is the rate by which their investments are protected. IPR
protection builds the investors' confidence on the country's market and the government's dedication and
capabilities toward the cause. Economic decisions, such as the levels of IT demand and investments are
affected by speculations that arise from forecasting the psychology of the market. A low market
confidence can lead to lower capital inflows and labor demand. Therefore, the primary agenda for IPR
protection in IT is the building of investor confidence in the Philippine IT market.
Figure 5. Importance of IPR Protection in the Software and IT Services Industry
create Protection of provides ECONOMIC

IPR Laws IPR rignts CLIMATE
generates
SPECULATION
(Anticipation of impending
changes)
DEMAND
DECISIONS results
Software and IT
Services Industry affect
INVESTMENTS
MUSIC INDUSTRY
31 IPR protection in this framework is reflected by the level of software piracy in the country, as estimated by the Business Software
Alliance. The higher the piracy rate, the less is the perceived IPR protection in the IT industry.
43
Table 9. National Sale s in Mus ic/Re cording
Indus try and Gove rnm e nt Re ve nue : 1990-2003
Ye ar Total Re tail Sale s Value Adde d
Tax (10%)
1990 450,800,000 45,080,000

1991 599,311,500 59,931,150
1992 690,000,000 69,000,000
1993 775,805,000 77,580,500
1994 1,017,270,000 101,727,000
1995 1,139,430,000 113,943,000
1996 1,319,402,000 131,940,200
1997 1,693,045,000 169,304,500
1998 1,836,125,000 183,612,500
1999 1,652,848,000 165,284,800
2000 2,122,148,000 212,214,800
2001 1,870,373,667 187,037,367
2002 n.a. n.a
2003 1,175,000,000 117,500,000
Note: The 2001 sales value is an estimate using the
moving average of 1997-1999
Source: PARI
At present, there are 38 record companies in the Philippines giving livelihood to more than 15,000 people
- from the composers, singers, musical arrangers, musicians, to the record bar girls, technicians, and
recording studio personnel (Philippine Association of the Recording Industry Inc., PARI).
These record companies comprise the Philippine Association of the Record Industry, Inc. (PARI), a non-
profit, non-stock, and purely private industry organization formed in 1972. For more than 30 years, PARI
has 1) promoted and developed a legitimate and viable music industry, 2) endorsed and improved the
Filipino music to world class status for it to be able to penetrate the world market, 3) protected copyright
owners against unauthorized use, reproduction, and sale of music and sound recordings, and 4)
maintained musical sound recording as a medium that provides wholesome entertainment and positive
values to the public (Position Paper of PARI on the OMB 32, 2002).
Table 10. Local (OPM) and Foreign Sales Shares: 1995-2000

Year Local Foreign
1995 45 55
1996 35.3 64.7
1997 30.6 69.4
1998 30 70
1999 24.1 75.9
2000 42.7 57.3
Source: PARI
The Philippine music industry has provided employment to Filipino talents, and has also contributed to the
local economy through the taxes (VAT) remitted to the government. From 1994-2003, hundred millions of
pesos, in the form of value added tax (VAT), were collected from the record sales of the industry. The
highest estimated tax collection was registered in 2000, at P212 million, while the lowest was in 1990, at
P45 million. Estimated tax payment from the music industry has also been increasing from 1990 to 1998
(Table 9).
32
Optical Media Bill, House Bill 5225 and Senate Bill 2586
44
Based on the data collected from PARI, the Philippine music market has generally been dominated by the
foreign records/albums. As presented in Table 10, the share of local sales has been declining since 1995.
In 2000, however, this market share expanded to 42.7%, but not enough to overtake the sale of foreign
albums.
Music Piracy
The declining sales share of the local records has generally been attributed to piracy. According to the
Music Piracy Situationer prepared by PARI (2002), “the Philippine music industry was a thriving industry
before the vicious tentacles of music piracy choked it to near collapse.”
PARI also said that piracy in the Philippines “has been a problem since twenty years ago, when vinyl
album and then cassettes were pirated” (Position paper on OMB, 2002). Music IPR infringement was in
the form of cassette piracy that was contained or limited to sidewalks, public markets or door-to-door
selling. However, due to optical media technology, duplication capabilities of IPR violators have increased
a hundred-fold (Optical Media Bill FAQ Primer).
In 1997, pirate CDs from China, and bootlegs from the United Kingdom and Germany started flowing in
the Philippines (IIPA Special 301 Recommendation, 1997). During the succeeding years, public markets,
major steers, and malls in the country were flooded with pirate CDs (Music Piracy – A Situationer, April
2002, by PARI).
Recent developments showed that the country no longer just imports pirated CD products but
manufactures them as well, as pirate CD plants started to emerge all over the Philippines. This resulted to
the existence of rampant CD piracy; and sale of these illegal products has extended to legitimate malls
and popular flea markets, in addition to the vending stalls in the streets.
Until recently, the vast majority of pirate optical media products were smuggled or
otherwise imported into the country from abroad. This is no longer the case. There are
believed to be at least eighteen active production lines for optical media products in the
Philippines, more than twice as many a year ago, and perhaps many more than that ... The
recording industry estimates that at least half of the pirate music CDs circulating in the
Philippines are locally manufactured; the rest are imported from Malaysia, Taiwan,
Indonesia and Hong Kong (IIPA 2001 Special 301 Report: Philippines).
With these changes, it is assumed that cassette piracy in the Philippines is being substituted by CD piracy
during the latter years of 1990s up to the present. IIPA reported that in 1999, “45% of all music CDs sold
in the Philippines are pirate, in contrast to the piracy rate of 13% for the cassette format” (IIPA 2000
Special 201 Report: Philippines). This has also been consistent with the rising preference of the public in
buying CDs as opposed to cassette tapes. Further, with the optical media technology, replication of music
records in CDs has become so easy and less costly than the illegal reproduction using the cassette
medium.
45
Figure 6. Comparative Presentation of IIPA and IPC Music Piracy
Rates:1997-2003
45 40 40 40
40
33 34
35
29
percent
30
25 20 20 20 20 21 20
20 16
14
15
IPC Piracy Estimates
10
IIPA Piracy Estimates
5
0
1997 1998 1999 2000 2001 2002 2003
An investigation on the medium used by consumers in listening to music was conducted to determine
whether there is an increasing preference for music in CD format. The sales figure of music appliances
compatible for CD playing was the factor used in this analysis. It was observed that the sales, of the set of
appliance mentioned, have been improving through the years, creating a more favorable market for the
CD records. According to the National Statistical Coordination Board (NSCB) statistics 33, the share of this
music component to the overall audio appliance sales rose from 23.0% in 1996 to 57.7% in 2003.
How serious is the music piracy in the Philippines? Based on Figure 6, music piracy rate has been
increasing from 1997 until 2003. This trend is observed in the Intellectual Property Coalition 34 (IPC) Music
Piracy Estimates. From 14.1% piracy rate in 1997, it climbed to 29% in 2001, and further rose to 40%35 in
2003. Meanwhile, the music piracy rate estimates by the International Intellectual Property Alliance 36
(IIPA) were pegged at 20% from 1997-2000. However, the figure shot up to 33% in 2001, further climbed
to 40% in 2002, and settled to that level in 2003.
MOVIE/VIDEO INDUSTRY
Aside from providing the country international recognition, the movie industry is also significant to the
local economy. In 2000, it was estimated that the film business employed 130,000 people, 65.4% of
which are in the film making and theatrical sub sector, 19.2% in video distribution, and 15.4% engaged in
cable services provision. During the same year, it was estimated that the annual payroll expended in the
business was PhP9.72 billion, while the industry's estimated total tax contribution amounted to PhP3.5
billion (Sazon, Eduardo D. 2000)37.
33
Economic Indicators Publication (December Issues 1997, 1998, 1999, 2000, 2001, 2002, 2003)
34
The Intellectual Property Coalition is an organization in the Philippines composed by private IP stake-holders.
35
2003 piracy rate was an estimate by PARI.
36
The International Intellectual Property Alliance (IIPA) is a private sector coalition that represents the U.S. copyright based industries
that calculate piracy levels in various countries.
37
Eduardo D. Sazon is the Executive Director of the Association of Video Distributors of the Philippines (AVIDPHIL) , a national trade
association devoted to the promotion and advancement of the nation’s video industry. He is also the Vice-Chairman of the Intellectual
Property Coalition.
46
Table 11. Box Office Performance and Taxes in Metro Manila:
1997-2001
Estimated Metro Manila
Box Office Estimated Amusement
Year Performance ('000) Taxes ('000)
1997 1,150,000 215,000

1998 955,000 179,000
1999 980,000 183,000
2000 890,000 166,000
2001 785,000 147,000
Source: Film Ratings Board
The government has been perceived to be one of the sectors that benefit most from the development and
expansion of the film making business. It receives 30% amusement tax, 10% VAT, and 10% withholding
tax from the theatrical proceeds, in addition to the 30% amusement tax and 10% VAT on video
distribution. Furthermore, a 10% VAT is also paid by cable service providers.
According to the report of the Film Ratings Board on the Local Film Industry (undated), the estimated
amusement taxes collected from Filipino films shown in Metro Manila have been decreasing. From P215
million worth of taxes in 1997, the collection declined by 16.7% in 1998. The government income slightly
climbed, by 2.2% in 1999, but the value again dropped by 9.3% the following year. By 2001, only P147
million tax income was collected (Table 11).
Figure 7. Num ber of Local Movies Produced:

1997-2003
2003 80
90
2001 107
101
1999 134
153
1997 211
Source: Sazon, 2000
This decreasing tax collection trend may primarily be attributed to the dwindling number of local films
produced in recent years. As presented in Figure 7, the production of local films has been slashed by
more than 50% from 1997-2003.
Several factors may explain the declining trend in the local movie production. One is the high cost of film
production and the low turn-overs. In 1997, the average cost of producing a movie was P9 million. Of the
local movies produced in that year, only 10% made money, 41% broke even, while 70% did not fare well
in the market. It is said that in order to break even, “ a P9 million movie must gross 342% of production
costs, or P30,802,139. For every additional peso earned, only P0.21 goes back to the producer for
distribution and operation cost” (Sazon, Eduardo D., 2000). Hence, film production has not been very
lucrative for investors.
47
Video Piracy
Another reason for the decline in movie production is the widespread occurrence of video piracy in the
country. Like in the recording industry, piracy is a threat to the movie/film business. With the
improvements in image copying, IPR infringement has become a relatively easy task. Without the burden
of the fixed costs, pirating entails minimal or only the marginal costs of production.
Figure 8. IPC Video Piracy Rates: 1994-2003
80
59 68
70 64 60 59
60
in percent
49
50 44
40 41
30
20
10
0
1996 1997 1998 1999 2000 2001 2002 2003
Video piracy in the Philippines exhibited a decreasing trend since 1998 up to the present (Figure 8). The
highest decline was registered in 2000-2001, at 10.6 percentage points, while the lowest drop was
recorded at 1.2 percentage points, in 1999-2000. The IPC38 estimates cover piracy of movies through the
video cassette and optical disc media. Note that video piracy rates started to drop the year the Intellectual
Property Code of the Philippines was enacted, which was in 1998. However, extensive investigation of
this association will be developed in later sections of the paper.
Table 12. Sales of Appliances for Video Viewing: 1996-2003

Year VHS VCD DVD Total Sales
1996 298,383 298,383
1997 344,884 344,884
1998 350,188 89,670 439,858
1999 338,748 95,240 433,988
2000 146,700 117,700 264,400
2001 43,700 238,500 282,200
2002 7,900 194,300 41,900 244,100
2003 1,150 93,400 120,800 215,350
Source: Monthly Economic Indicators (December issues, 1997-2002;
October issue, 2003), NSCB
The IIPA39 estimated that the motion picture piracy in the country has been constant at 65% for four
consecutive years, from 1996-1999. It climbed to 70% in 2000, and further rose by 10.0 percentage points
38
The Intellectual Property Coalition is an organization in the Philippines composed by private IP stake-holders.
39
The International Intellectual Property Alliance (IIPA) is a private sector coalition that represents the U.S. copyright based industries
that calculate piracy levels in various countries.
48
the following year. The 2002 estimates remained at 80%, while the 2003 rate climbed to 89%. 40 These
estimates cover the entire motion picture business, including video, television and cable, and public
performance.
The proliferation of piracy in the Philippines was encouraged by the change in the Filipinos' movie
watching preference during the early 90's. As substitutes, movie theater watching has slowly been
replaced by home video viewing. According to the National Statistics Office (1994 Functional Literacy,
Education and Mass Media Survey, FLEMMS), exposure of the public to movie theaters has decreased
by 4.6% in 1994 from the 1989 figures. In contrast, video tape exposure increased by 2.4% during the
same period. This placed video tape (7th position) ahead of movies (8th) in the 1994 ranking of the mass
media forms that Filipinos patronize.
As home video watching became popular, so did the unit sales of appliances for video viewing. From
Table 12 it can be observed that in 1997 and 1998, VHS unit sales increased by 15.6% and 1.5%,
respectively. However, it dropped slightly, by 3.2% in 1999, as the VCD player was introduced in the
market. The declining trend in the VHS volume sales continued until 2001, as the VCD player sales
prospered. But due to the fast development in technology, a new medium of video viewing was presented
to the market in 2002, which is the DVD player. Unit sales of the DVD player reached 41,900 during the
year. As expected, VCD player unit sales started to drop during the same year, from 238,500 in 2001 to
194,300 in 2002, and will be expected to lose popularity as the DVD player gains an audience. The
pattern of movie video medium is also expected to follow this trend as the preference of movie watchers
change from video cassette tape, to VCD, and eventually to DVD. This hypothesis is supported by the
2003 figures, wherein VHS unit sales dropped to 1,150 and VCD to 93,400. Conversely, DVD unit sales
shot up to120,800 during the said year.
Due to the apparent shift from movie watching to home viewing, one would expect that video distribution
will thrive as a business. However, according to the statistics provided by VIVA Video Inc., the number of
registered video establishments was affected by piracy as they started to dwindle in 1994. From the 6,402
figure, it declined by 45.3% to 3,500 in 1998.
It is evident that video piracy does not only affect film production, but the industry as a whole. It affects
the theatre revenues, the video manufacturing and distribution business, and the actual movie production.
INTELLECTUAL PROPERTY RIGHTS PROTECTED
Rampant intellectual property infringements affect both the domestic and international economies. Due to
piracy, there is a transfer of revenues from the legitimate businesses to the free-riders (IPR violators).
Piracy also results in government losses, in the form of taxes.
40
The two piracy estimates are not comparable for in the IPC figures only cover piracy in video, while the IIPA estimates the piracy in
the entire motion picture business, including video, television and cable, and public performance.
49
Piracy and other IPR violations are economic issues that affect both the private and government sectors.
The protection of intellectual
Legislative Bra nch/Offices POLICY AND property, therefore, lies not only
(Government) REGULATION in the hands of the government,
but also of the private entities.
The importance of the
Law Enforcement Agencies
(Government) cooperation between the two is
presented in Figure 9, in the
ENFORCEMENT
Total IP Protection Model this
Intellectual Property Office AND paper conceptualized.
(IPO)
(Government) ADJUDICATION
Total As shown in the model, there
IP R are three cornerstones of IPR
IIndividual IP Stakeholders Protection protection, namely: 1) Policy
(Private Sector) and Regulation, 2) Public
Information and Education
PUBLIC Campaign, and 3) Enforcement
INFORMATION
AND and Adjudication41. In
ODEL Intellectual Property Rights EDUCATION
addressing these issues, the
Related Organizations CAMPAIGN
(NGOs) government should mobilize all
(Private Sector)
its branches, with an emphasis
on the legislative and executive
branches. The legislative branch of the government is responsible for the placement of adequate laws
and regulations for the safeguard of intellectual property rights. Meanwhile, the law enforcement
agencies, and IPR concerned government agencies, have the duty to implement the said rules.
However, government efforts will not be effective without the support of the individual stakeholders and
other private sector entities, especially those belonging to the industries affected by IPR infringements.
Thus, on the side of the private sector, the individual IP stake-holders and the IP related organizations
must actively take part in the endeavor. And to involve the whole society in the cause, the above
mentioned sectors must cooperate in informing and educating the public regarding IPR protection.
Policy and Regulation
The Philippine government has been protecting intellectual property rights since 1947, when the first laws
on the protection IPR were enacted42. Such laws include:
Republic Act No. 165 otherwise known as “An Act Creating a Patent
Office, Prescribing its Powers and Duties, Regulating the Issuance of
Patents and Appropriating Funds Therefore”
Republic Act No. 166 otherwise known as “An Act to Provide for the
Registration and Protection of Trademarks, Trade Names and Service
Marks, Defining Unfair Competition and False Marking and Providing
Remedies Against the Same, and for other Purposes”
41
Identified cornerstones of IPR protection during the Anti-Piracy Action Planning Workshop in 2001. The main product of the
workshop was the Strategic Action Plan to Strengthen Public Awareness and Enforcement of IPRs which was presented to Executive
Secretary Alberto Romulo.
42
“Intellectual Property Rights in the Philippines: Brief Background”. Chan Robles Virtual Law Library.
50
IPR promotion and protection have also been made a state policy as the 1973 Constitution provides that
The exclusive rights to inventions, writings and artistic creations shall be

secured to inventors, authors, and artists for a limited period.
The 1987 Constitution, meanwhile, explicitly mandates that the State

shall protect intellectual property43.
The major turning point in the protection of IPR in the Philippines is the passing and signing into law of
the Intellectual Property Code of the Philippines (Republic Act 8293) in 1997. The IP Code repealed the
old IP and IP-related laws such as the Republic Act 165 (Patents Law); Republic Act 166 (Trademarks
Law); Presidential Decree 49 (Copyright/Related Rights Law); Presidential Decree 285 (Textbook
reprinting Law); and Articles 188 and 189 of the Revised Penal Code (on unlawful
competition/infringement). Consequent to this was the establishment of the Intellectual Property Office
that would administer and implement the State policies declared in the Act. The significant changes in the
IPR protection in the country, as a result of the implementation of the IP Code, are presented in Table 13.
43
Ibid.
51
Table 13. Comparative Presentation of IPR Protection Situation Before and After the Enactment of the IP Code
Area of Comparison Before the IP Code After the IP Code
Legal Rights of IP stake- Rights of IP stakeholders are protected The IP Code is the one law that
holders through the different laws in place represents most of the other IPR laws
which has existed since 1947. combined.
Filing of complaints Filing has to be in the regular courts Filing can be done in the specialized IP
located in the provinces/areas where courts. IP owner can also file for damages
the infringements occurred. and for an injunction order to the IPO
(administrative cases). The process has
been more convenient and cost efficient
for IP stakeholders since the IPO is
located in the
Length of IPR case An IPR case lasts, on average, for 2-3 There is no significant difference in the
prosecution/trial years. However, a case may also last length of time an IPR case is tried,
until 5 years. especially for a criminal case. This is so
since the issue involves the whole
Philippine judicial process. However,
through the existence and expansion of
the jurisdiction of t
In addition, the IPO can also act as
mediator in settling IPR cases. This is
significant in helping unclog the judicial
system with pending cases.
Recourse of IP IP stakeholders seek help from the IP stakeholders have the IPO, a
stakeholders regular enforcement agencies of the specialized IP government agency, to
government such as the NBI, PNP, and seek assistance from. Also, the
the like, and file cases in the regular enforcement agencies have special IP
courts. units/divisions (e.g. NBI, DOJ) to take
action on IP related cases. Filing of IPR
cases takes place in the specialize
Hearing of IP cases Filing and trial of IP related cases occur IP related cases are heard in specialized
in the regular courts located in areas IP courts where a judge who is more
where the infringement took place. knowledgeable and who specializes on IP
Regular state prosecutors and judges matters preside. Capable IP prosecutors
prosecute and preside in the case, have also been placed to try the cases.
respectively. The accessibility of the courts to the IP
stakeholders h
Note: From a personal interview with Atty. Bienvenido Somera, Jr., President, Philippine Intellectual Property Alliance
The IP code was later followed by the attempt to combat internet piracy through the Electronic Commerce
(E-Commerce) Act, Republic Act No. 8792, in June 2000. The law provides specific provisions to fight
copyright piracy in the internet. As stated in Section 33 (b) of the E-Commerce Act:
Piracy or 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 recordings or
phonograms or information material on protected works, through the use of
telecommunications networks, such as, but not limited to, the internet, in a manner that
infringes intellectual property rights shall be punished by a minimum fine of One hundred
thousand pesos (P100,000.00) and a maximum commensurate to the damage incurred and
a mandatory imprisonment of six (6) months to three (3) years.
52
In another legislative effort to protect IPR, the Senate and House of Representatives passed in 2001 the
Republic Act 9150 - "An Act Providing for the Protection of Lay-out Designs (Topographies) of Integrated
Circuits, Amending for the Purpose Certain Sections of Republic Act No. 8293, Otherwise Known as the
Intellectual Property Code of the Philippines and for other Purposes". The law took effect on August 31 of
the same year. Moreover, the Patent Cooperation Treaty (PCT) was ratified by the Senate and was
implemented, also in 2001. The PCT is a “treaty for rationalization and cooperation among contracting
states with regard to the filing, searching and examination of patent applications and the dissemination of
the technical information.”44
Intellectual property rights encompass a broad range of concern that includes invention and innovation in
the field of science. Hence, in June of 2002, to protect the plant breeder’s rights, Congress passed the
Republic Act No. 9168, the Plant Variety Act. This is an Act that aims to protect the exclusive rights of
plant breeders with respect to their new plant variety. This plant breeder’s right is an “exclusive right that
enables the holder of the right to prohibit others from exploiting or using the protected plant variety
without any permission or license from the rights holder.” 45 The agency that will manage the
implementation of the law is the National Plant Variety Protection Board (NPVPB).
On the judicial aspect of IPR protection, the Philippine Supreme Court passed the A.M. 46 No. 02-1-06-SC.
It is a Resolution on the Proposed Rule on Search and Seizure in Civil Actions for the Infringement of
Intellectual Property Rights that took effect on February 15, 2002. With this Rule, the copyright holder
may apply ex parte for the issuance of a search warrant to an alleged infringing defendant, wherein a
delay is likely to cause harm to the IPR holder or where there is enough risk of the evidence being
destroyed.
In another effort to combat IPR violations, the Philippine Bureau of Customs has issued guidelines on
border control measures through the Customs Administrative Order 6-2002. As a follow-up regulation, the
Bureau also issued the Customs Special Order No. 24-2002. The Order intends to strengthen customs
border control over imports containing goods suspected to be infringing upon the IPR of owners as
defined by the IP Code and related Laws, through the creation of an Interim Intellectual Property Unit
(IPU) in the BOC. Meanwhile, as of September 12, 2003, the Bureau had approved the Customs Special
Order 19-2003 that transformed the Interim IPR unit to a Permanent Intellectual Property Unit. This would
centralize border policy development and implementation for better monitoring and interdiction of possible
IPR violations at the ports of entry.
This significant progress equips the BOC to efficiently concentrate on the concerns and issues
surrounding IPR in the area of border control. As a specialized unit, the IPU will be able to effectively
monitor IPR related activities through the creation of an IPR database system, and hence, be able to
competently coordinate with other agencies and organizations that have same purpose. Moreover, a
permanent IPU will result to a swifter response of the Bureau on complaints by IP stakeholders on piracy
and trademark infringements, among others
44
Intellectual Property Office (IPO) Office Order No. 13, Series of 2002
45
Southeast Asia Regional Initiatives for Community Empowerment (SEARICE) Primer, as cited by Basilio, Robert JA, Jr. , June 24,
2002. www.cyberdyaryo.com
46
A.M. - Administrative Matter
53
On the other hand, the Revised Implementing Rules and Regulations of R.A. 47 No. 9160 (Anti-Money
Laundering Act of 2001) as amended by R.A. No. 9194 (Anti-Money Laundering Law) includes among its
provisions the following:
Rule 3.i “Unlawful activity refers to any act or omission or series or combination thereof involving or having
relation, to the following:
(K) Violations under Republic Act No. 8792, otherwise known as the Electronic Commerce Act of 2000;
(K.2) Piracy, which refers to:
(58) the unauthorized copying, reproduction,
(59) the unauthorized dissemination, distribution,
(60) the unauthorized importation,
(61) the unauthorized use, removal, alteration, substitution, modification,
(62) the unauthorized storage, uploading, downloading, communication, making available to the public, or
(63) the unauthorized broadcasting of protected materials, electronic signature on copyrighted works, including
legally protected sound recordings or phonograms or information material on protected works, through the use
of telecommunication networks, such as, but not limited to, the internet in a manner that infringes intellectual
property rights.
These rules were approved by the Senate and the House of Representatives on August 6, 2003.
Acknowledging the importance of technology in the proliferation of IPR violations, new laws are being
geared towards regulating the processes by which pirated products are produced. In fact, the Optical
Media Act of 2003 or Republic Act 9239, has been ratified into law last February 10, 2004. This legislation
focuses on the “unregulated mastering, manufacture of and replication in optical media” of copyrighted
materials in the Philippines, wherein the importation and exportation of optical media are among the
activities to be licensed by the Optical Media Board. The new law is expected to help curtail piracy in the
software, music and video/movie industries.
The law component of IPR protection also includes the membership of a country in international copyright
treaties and enforcement measures. The Philippines has been actively participating and joining such
agreements, such as the World Trade Organization – Trade-Related Aspects of Intellectual Property
Rights (WTO-TRIPS Agreement)48. As stated in the IAC-IPR 1999 Executive Summary Report, “in
compliance with the WTO-TRIPS Agreement, the IPR Laws namely: PD 49, - Copyright Laws as
amended by PD 1988; RA 165 – Patent Laws; RA 166 – Laws on Trademarks, Trade names, and
Service marks; Articles 188 and 189 of the Revised Penal Code; and PD 1987 – Videogram Regulatory
Board Law – were simplified and rolled into one law called, RA 8293, otherwise known as the Intellectual
Property Code of the Philippines.” The latest international treaty in which the country participated in are
47
R.A. – Republic Act
48
The WTO-TRIPS Agreement is the most detailed and comprehensive multilateral agreement on intellectual property to date, which
sets the minimum standards for IP protection among counties.
54
the WIPO Copyright Treaty, WCT, and the WIPO Performances and Phonograms Treaty, WPPT, in
October of 2002.
Table 14. Matrix of the IPR Laws and Addressed IPR Violation
Infringement/ LAW IP Code Electronic Plant Variety R.A. 9150 Border Ex parte Optical
Commerce Act Act Control Search Order Media Act
Trademark X X X X
Infringement
Book Piracy X X X X
Music Piracy X X X X
Video Piracy X X X X
Software Piracy X X X X X
Cable Piracy X X
Internet Piracy X X
Patent X X X X X
Infringement
Among the different IPR laws listed in Table 14, the Optical Media Act is the law that tackles, not the
intellectual property itself, but the medium in which the IP is stored. The Act seeks to regulate the
technology and medium through which the songs, movies, software and all other such IPR materials, are
recorded and transmitted/transferred, which is the Optical Media. The development of the optical media
has made the mass production of optical discs fast and easy, taking no more than four (4) seconds to
replicate one disk. Currently, the minimum number of copies a replicating machine can duplicate is
60,000 (OMB Primer). This number is reproduced at marginal costs to the pirate hence, the activity
becomes very lucrative.
Through the OMB better IPR protection is expected to be achieved through:
 the expanded jurisdiction of the concerned government agency in its arrest and seizure activities;
 the greater punishment rendered to the pirates; and
 better licensing system for the machines used for replication and production.
Concern for IPR protection does not only involve the national government, but the local government units
(LGUs) in the Philippines as well. During the last quarters of 2003, LGUs in the country passed anti-
piracy ordinances in their jurisdictions. The first anti-piracy LGU ordinance, Ordinance 2003-09249, was
passed and adopted in Naga City last September 3, 2003. The ordinance requires that all business
licenses and permits issued by the City government must carry the express condition that the licensee(s)
will not engage in the sale, rental, transfer, distribution, manufacture and/or production of pirated
counterfeit or fake goods, articles or services. It also prohibits other persons to commit said acts within
the licensee’s business establishment or premises.
A breach of these conditions may be grounds for the revocation or suspension of the business permit.
Moreover, the ordinance provides authority to the local government to seize or confiscate pirated or
counterfeit goods of any person engaged in any business or trade.
The same type of local law was passed in Iloilo City last December 2003. It is expected that other cities
and municipalities will follow suit with the passage of Department of Interior and Local Government
(DILG) Memorandum Circular (MC) No. 2003-229, entitled “Protection of Intellectual Property Rights” last
49
Ordinance 2003-092, entitled "An Ordinance Imposing Penalties Upon Persons and Establishments for the Sale, Rental, Transfer,
Distribution, Manufacture and/or Production of Counterfeit or Fake Goods, Articles, and for Other Purposes".
55
December 8, 2003. This MC endorses the anti-piracy LGU ordinance and enjoins all LGUs in the country
to help enforce IPR protection.
Enforcement and Adjudication
Government Sector Efforts on Enforcement
An Intellectual Property Office was created to administer and implement the State policies declared in the
IP Code. The agency was first placed under the supervision of the Department of Trade and Industry
(DTI) during its initial creation, but was later transferred to the Office of the President, specifically under
the Office of the Executive Secretary.
The IPO is commissioned to implement the changes introduced by the IP Code, such as: 1) the
streamlining of the procedure in registering trademarks by abolishing the Supplemental Register; 2) the
overhaul of the patent system from first-to-invent to first-to-file system; and, 3) the liberalization of the
registration of technology transfer arrangements. The IPO also executes a policy-making role and
exercises quasi-judicial jurisdiction for violation of all kinds of intellectual property rights. The agency has
the authority of hear and decide on:
 administrative cases involving violations of intellectual property rights where the claim for
damages is P200,000 and above;
 opposition and cancellation cases for trademarks;
 cancellation of patents, utility models and industrial designs; and
 compulsory licensing
It also has the authority to settle disputes involving technology transfer payments and author’s rights to
public performance or other communication to the public of his works.50
The agency is the main coordinating body for IPR enforcement activities done by the government and, to
some extent, those of the private sector’s as well. In July of 2002, the Intellectual Property Rights
Enforcement Action Panel (IPREAP) was formed to further advance the IPR advocacy and protection in
the country. The IPREAP consists of government agencies and private representatives from the
academe, Research and Development Institutions and business/trade organizations, and IP
organizations. At present, the following sit in the panel as members: Intellectual Property Office (IPO),
National Bureau of Investigation (NBI), Department of Justice (DOJ), National Telecommunications
Commission (NTC), Videogram Regulatory Board (VRB), Philippine National Police (PNP), Bureau of
Customs (BOC), Intellectual Property Coalition (IPC), Council to Combat Piracy and Counterfeiting of
Patents, Copyrights and Trademarks (COMPACT), Intellectual Property Association of the Philippines
(IPAP), Philippine Internet Commerce Society (PICS), Electronics Industry Association of the Philippines
(EIAP), Quezon City Chamber of Commerce and Industry (QCCCI) and Davao City Chamber of
Commerce and Industry (DCCCI).
The IPO has taken the lead in all the said activities of the IPREAP. The agency also created an
Intellectual Property Enforcement Unit in its organization, under the Office of the Director General, for a
more effective execution of the other strategies in the agency's master plan.
50
Information lifted from the IPO General Information Brochure.
56
Earlier efforts in enforcing IPR laws include the creation of the Presidential Inter-Agency Committee on
Intellectual Property Rights (PIAC-IPR) through the Executive Order No. 60 in February 26, 1993. 51 The
PIAC-IPR monitored IPR infringement activities and enforced the IP Laws, thus, generating a good
business environment beneficial to both local and foreign IP stakeholders. The PIAC-IPR was composed
of nine (9) government agencies namely: the Department of Trade and Industry - Bureau of Trade
Regulation and Consumer Protection (DTI-BTRCP), Videogram Regulatory Board (VRB), Department of
Justice (DOJ), National Telecommunications Commission (NTC), Bureau of Customs (BOC), National
Bureau of Investigations (NBI), Philippine National Police (PNP), Economic Intelligence and Investigation
Bureau (EIIB), and the Bureau of Food and Drugs (BFAD). When the PIAC-IPR was abolished in 2002,
the said agencies continued to individually implement the IPR laws.
Among the law enforcement agencies, the DTI, DOJ, NBI, PNP, EIIB “respond to search warrant raids”
52,while the NTC and VRB are able to use their own mandates to enforce their authority. The two latter
agencies execute their individual monitoring and arrest activities. However, joint agency inspection and
seizure efforts are also performed.
The DTI-BTRCP activities were carried out in the whole country by the regional offices of the said
department. This agency has an extensive jurisdiction over the confiscation of trademarked goods, from
wristwatches, wines/liquors, construction materials, clothes, accessories, etc., to copyrighted and licensed
materials such as CD-Rom software programs, playstation CDs, music cassette tapes and CDs, and
video VCDs and DVDs. Similarly, the NBI, EEIB, PNP, and BOC had been able to seize the same types
of fake goods during their enforcement activities.
On the other hand, the BFAD has authority over the arrest of specific kinds of establishments and people,
such as those reproducing and distributing fake drugs, food, cosmetics, and various pieces of medical
device. Lastly, the VRB was the lead agency concentrating on curtailing video piracy, and has
apprehended establishments engaged in this particular kind of IPR infringement53.
How did the government conduct its IPR enforcement activities?
51
However, the PIAC-IPR was abolished in 2002 through the Executive Order No. 72.
52
IAC-IPR 1999 Executive Summary; The IPR enforcement activities of the mentioned agencies need a filed complaint (filed to the
DOJ) from the IP stake-holder/s before they are executed. Hence, their raids are carried out with search warrants.
53
The VRB had been abolished with the enactment of the Optical Media Act of 2003. The agency’s activities and responsibilities are
now carried out by the Optical Media Board (OMB).
57
During the time when the PIAC-IPR was still active, two of its main enforcement activities were to monitor
and apprehend firms for violation of IPR laws. From 1993-2001, the number of firms monitored for IPR
Figure 9. Number of Firms Monitored and Apprehended for IP Code

Violations: 1993-2001
16000
14000
12000
10000
8000
mo nito red
6000 apprehended
4000
2000
0
1993 1994 1995 1996 1997 1998 1999 2000 2001
mo nito red 4514 6406 8654 8539 8944 10138 13495 14876 13684
apprehended 145 2017 2145 1518 669 585 543 1480 1272
Source: Presidential Inter-Agency Committee on Intellectual Property Rights Executive

Summary (January-December 1999; 2001)
violations has been increasing. This is true except during 1996 and 2001 when the figure dropped by
1.3% and 8.2%, respectively. On the other hand, the number of apprehended firms reflected a wave-like
trend. The trend reached its twin peaks during the years 1995, at 2,145, and 2000, at 1,480 (Figure 9).
Among the agencies, the Department of Trade and Industry (DTI) registered the highest number of firms
monitored. On average, it inspected 77.7% of the total from 1996-2001, followed by the Videogram
Regulatory Board (VRB), at 15.1% (Table 15). This suggests that the over-all trend in the monitoring
performance of the PIAC-IPR, during the years presented, was generally determined by the operations of
DTI.
Table 15. Number of Firms Monitored for IPR Violations by IAC-IPR Member Agencies: 1998-2001
Agency 1996 1997 1998 1999 2000 2001
DTI-BTRCP 6,559 6,617 8,658 10,544 11,306 10,397
VRB 1,573 1,630 804 2,245 2,226 1,985
DOJ 161 279 328 - 679 532
NTC 162 235 174 181 137 153
BOC - - 6 29 4 11
NBI 84 170 151 245 448 419
PNP-CIDG - 13 17 65 19 177
BFAD - - - 157 57 10
EIIB - - - 29 - -
TOTAL 8,539 8,944 10,138 13,495 14,876 13,684
Note: BFAD and EEIB w ere only included in the data set in 1999
Source: Presidential Inter-Agency Committee on Intellectual Property Rights Executive Summary
(January-December 1999; 2001)
58
On the other hand, Table 16 shows that most of the raids conducted from 1996-2001 was accomplished
by the Department of Justice (DOJ) and the National Bureau of Investigation (NBI). They carried out an
average of 28.6% and 23.4% of the total operations, respectively. These are the two agencies that
generally influenced the performance of the PIAC-IPR regarding apprehending firms that commit IPR
violations.
More recent enforcement activities54 of the government include the intensified search and arrest
operations of the VRB in 2002, at 259, compared to the 37 cases recorded in 2001 (Figure 10). This
resulted in the confiscation of eleven (11) optical disk lines and a number of CD burners. In addition, 4.31
million units of video discs were also seized during the year. However, there was a 25.9% decline in the
figure during 2003 wherein the number of search warrant operations was recorded at 192. The number of
Table 16. Number of Firms Apprehended for IPR Violation by IAC-IPR Member Agencies: 1998-2001
Agency 1996 1997 1998 1999 2000 2001
DTI-BTRCP 189 159 32 23 74 78
VRB 1,045 30 47 98 166 37
DOJ 161 279 328 - 679 532
NTC 20 18 4 10 36 8
BOC - - 6 29 4 11
NBI 84
F i g ur e 10 . N umb170
er o f F i r ms 151
M o ni t o r ed 245 445 ed
and A p p r ehend 419
PNP-CIDG b19
y t he V R B f13
o r C o p yr i g ht
17 V i o l at i o ns:
65 19 9 6 - 2 0 019
3 177
BFAD - - - 44 57 10
2003 192
EIIB - - - 29 -
1957 -
TOTAL 1,518
259 669 585 543 1,480 1,272
2002 1534
Note: BFAD and EEIB w ere only included in the data set in 1999
37
Source: Presidential Inter-Agency Committee on Intellectual Property Rights Executive
2001 1985 Summary
(January-December166
1999; 2001)
2000 2226
1999 98
2245
1998 47 Firms Apprehended

804
Firms M onit ored
30
1997 1630
1996 1045
1573
0 500 1000 1500 2000 2500
Sources: PIAC-IPR Execut ive Summary (January-December, 1999;2001); VRB Int elligence and Inspection
Division, Summary Operat ions f or CY 2002; IPO-Int ellectual Propert y Right s Enf orcement Unit
Accomplishment Report 2003
confiscated machines from these activities registered at 218 pieces, while that of the confiscated
equipments was 36 pieces.
The VRB experienced a 22.7% decline in their monitoring/inspection activities in 2002. These operations
resulted to the confiscation of 1.7 million units of video discs, and 55 pieces of A/V equipment. On the
other hand, the number of operations rose by 423 in 2003, registering at 1,957. Consequently, there was
an increase in number of confiscated goods and A/V equipment to 2.3 million units and 248 pieces,
respectively. Furthermore, 60 pieces of machineries were also seized.
The operations conducted by the NBI in 2002 declined by -8.83%, from the 419 figure in 2001 (Table 17).
However, the number rose by 5.24 in 2003. The PNP has more than doubled its efforts in enforcing IPR
protection as the operations carried out rose by 120% in 2002, from 177 in 2001. Enforcement activities
of the agency were further intensified by 7.2% in 2003. Meanwhile, the BOC conducted additional
54
With the abolition of the PIAC-IPR in 2002, data collection of government enforcement activities had been done in a per agency
basis.
59
operations in 2002, at 10, compared to the 9 operations registered in 2001. However, the figure slid by
20% in 2003.
One of the relevant achievements of the PNP, among the raids it conducted in 2002, was the seizure of
the counterfeit videogram materials in Meycauayan, Bulacan estimated to worth PhP1 billion. Case for
violation was filed before the DOJ against 12 foreign nationals caught in the activity.
Table 17. Enforcement Activities by the NBI/BOC/PNP: 2002-2003

NBI BOC PNP PNP with VRB
Activity 2002 2003 2002 2003 2002 2003 2002 2003
No. of Operations 382 402 10 8 390 418 334 *
Conducted
No. Cases Filed 328 177 0 0 * 251 65 *
No. of People * * * * 471 371 417 *
Arrested
Total value of goods 400 M 488 M 8.5 M 4.2 M 704 M 17.2 M 289 M *
confiscated (PhP)
Note: (-) - zero; (*) data not available

Source: IPO- Intellectual Property Rights Enforcement Unit Accomplishment Report 2002 and 2003
Figure 11. Enforcement Activity Flow Chart
Stage 1. IP Stage 2. Stage 3. Stage 4. Preparation of

stake- Evidence necessary requirements
holder's gathered is Complaint of for the granting of a
investigator evaluated by IPR private sector search warrant (made by
lawyers for is evaluated
monitors a both the NBI/PNP and the
complaint filing to
presumed by the complainant).
gov't agencies
IPR violator NBI/PNP
Stage 7. Stage 6. When a

NBI/PNP and warrant is granted, Stage 5. NBI/PNP file
private NBI/PNP and private for a search warrant.
complainants cooperate to execute Special IPR court hears
file a complaint enforcement the case.
affidavit operations
Stage 7.a.
Complainant and
defendant agree on a
settlement
Stage 8. DOJ/
Fiscal evaluate the
probable cause and
decides if there is a
The flow chart55 in Figure 11 shows the series of activities
case
conducted before an IPR case is tried in the IPR courts.
Simultaneous with the filing of a criminal case is the filing of a civil
one, wherein the client in the former is the government and in the latter, the private infringed party. Due to
the numerous cases handled by the state prosecutor, the private prosecutors are given permission by the
55
Flow chart has been formulated based on personal interviews with IPR lawyers. Consequently, succeeding discussions are also
based on the said interviews.
60
courts to handle both the criminal and civil aspects of the cases. This occurs to about 80%-90% of the
total IPR cases.
Most often than not, about 60%-70%, the IPR cases do not continue to formal court trial proceedings.
This is because at Stage 8, of the flow chart, the parties involved agree on a settlement. As a rational
economic individual, one would engage in a transaction that will minimize his costs and maximize his
benefits. An IPR case, like any other case, entails not only financial, but other transaction costs to both
parties involved in the proceedings. When the private complainant settles before the case is formally filed
in the courts, the state is left with no complainants and no case. Although the state may continue to file
criminal charges against the violators and prosecute, it is now left with no willing witnesses. The same
occurs even when the private complainants do continue with the criminal and civil cases, but settle in the
middle of the trial. The civil charges against the violators may be dropped, but the criminal case may still
be 0continued by the state. Again, with no cooperation from the private complainants, the IPR criminal
cases are no longer pursued.
Government Sector Efforts on Border Control
With the new regulations in place such as that of the border control 56, additional trainings for BOC
employees were conducted for the effective and efficient implementation of the law. Orientation training
seminars on border control were conducted in key cities in the Philippines such as Manila, Cebu and
Davao last December 28-29, 2002, January 16-17, 2003, and February 12-13, 2003, respectively. The
training seminars were attended by 441 BOC officials and private IP stakeholders.
To further strengthen border control in the country, the BOC conducted the training/workshop entitled
"The New Intellectual Property (IP) Border Control Measures" last October 3, 2003. The activity aimed to
familiarize the BOC IP Unit officials and personnel on:
 the key functions and responsibilities of the IP Unit as mandated in the CSO 19-2003;
 the rudiments of the IP Code;
 the importance of protecting intellectual property rights; and
 the salient provisions of the CAO 6-2002 on border control measures. This will ensure that a
uniform and effective implementation of the regulation is applied in customs ports, nationwide.
This workshop is basically a capacity-building activity for the BOC's IP Unit. It is expected that the training
seminar will increase the IP Unit's awareness on IPR issues, and further strengthen their commitment in
protecting IPR at the border.
Government Sector Efforts On Mediation
Due to the problems in the judicial system, i.e. judicial bottlenecks and backlog of cases, the IPO started
to develop its capacity for resolving IPR infringement disputes. This is also in view that the IPO’s
increased use of the mediation process will help promote a climate of confidence among investors
regarding the intensity of IPR protection in the country.
In 2003, the IPO conducted the mediation internship program which produced twenty-six (26) highly
trained mediators. The program resulted to an 85% settlement rate; of the twenty (20) cases that were
fully mediated, 17 were settled, while only three (3) cases failed. The mediation process that transpired
56
Customs Special Order 19-2003 that transformed the Interim IPR unit to a Permanent Intellectual Property Unit
61
during the program proved to be more expedient than the current adjudicative process regarding IPR
cases. Prior to the mediation program, the same IPR cases have been pending at the Bureau of Legal
Affairs (BLA) for an average of 4.9 years. On the other hand, the cases were settled during the program
within an average rate of twenty-one (21) working days, from the date the cases were assigned to
mediation until the agreements were signed.
The IPO also conducted mediation workshops/seminars in 2003 which discussed concerns such as: 1)
the principles of conflict, its typologies, and the basic responses to and motives of conflict, 2) the types of
negotiations, 3) principles of interest-based mediation and the types of mediations, 4) the various tools in
mediation, the ethics involved, and 5) the challenges of a mediator. These activities are efforts to
strengthen human resource capabilities in handling mediation processes concerning IPR.
Effects of Enforcement Activities on Piracy Rates
Figure 12. Software Piracy Rates and the Number of Firms

Monitored for IPR Violations: 1994-2001
16000 100
14000 90
80
12000
70
percent
10000 60
8000 monitored firms 50
6000 40
piracy rates 30
4000
20
2000 10
0 0
1994 1995 1996 1997 1998 1999 2000 2001
Source: : BSA and the PIAC-IPR Executive Summary for 1999 and 2001
As seen from Figure 12, an inverse relationship between the number of monitored firms for IPR violations
and the software piracy rate is observed. As the number of monitored firms increased, the software piracy
rate estimated by the Business Software Alliance (BSA) declined. The two variables also registered high
negative correlation (-0.96507), which indicates a strong relationship between the two 57.
57
Correlation is an analysis tool that is used to determine whether two ranges of data move together; 1) whether large values of one
set are associated with large values of the other (positive correlation), 2) or whether small values of one set are associated with large
values of the other (negative correlation), or 3) whether values in both sets are unrelated (correlation near zero). A perfect direct
relationship produces a correlation co-efficient of +1.00; a perfect inverse relationship produces an r of -1.00. A co-efficient of 0 means
there is no relationship at all between the two variables.
62
However, the same cannot be said about the association between the apprehension activities and the
piracy rates (Figure 13). No distinct relationship between the number of raids and the piracy rate was
observed. Furthermore, the statistical analysis between the two variables resulted to a 0.456932
correlation. This suggests that the large values in the piracy rates may be associated with the large
values of the number of apprehended firms, although this relationship is weak 58.
Figure 13. Software Piracy Rates and Number of

Apprehended Firms for IPR Violations: 1994-2001
2500 100
90
2000 80
70
1500 60 percent
50
1000 40
apprehended
30
500 piracy rates 20
10
0 0
1994 1995 1996 1997 1998 1999 2000 2001
Source: : BSA and the PIAC-IPR Executive Summary for 1999 and 2001
From this comparison, it can be observed that piracy rates relate more to the monitoring, rather than the
apprehension enforcement activities.
Figure 14 shows that the number of monitored firms and level of new BOI investments in Software
Development and IT Services trends are moving in the same direction. As the number of monitored firms
rises, the level of new investments also increases, though with a one year lag. Meanwhile, when the
monitoring activities declined in 2001, the level of investments followed the same direction in 2002. This is
an evidence of an association between IPR protection and investment decisions in the Software
Development sector.
Figure 14. Num ber of Monitored Firm s for IPR Violations

and the BOI New Investm ents in Softw are Developm ent
and IT Services: 1997-2002
1400 16000
1200 14000
in million pesos
1000 12000
no. of firms
10000
800
8000
600
New Investments 6000
400 M onitored firms 4000
200 2000
0 0
1997 1998 1999 2000 2001 2002
Source: PIAC-IPR Executive Summary 1999; 2001; and BOI
This strengthens the IPR Protection conceptual framework presented earlier (Figure 6) -- that market
perceptions and speculations are significant issues that affect demand for software products and
services. Investment decisions, made by risk-averse investors, do not only depend on economic elements
58
Ibid
63
but on security factors as well. Hence, decision-makers also take note of the government efforts on the
totality of IPR protection through the legislation passed and enforcement activities conducted.
Table 18. Music/Recording Piracy Rates: IPC Estimates and the IIPA Estimates (1997-2003)
Year Legitimate units sold Pirate unit sales Total units sold Piracy rates IIPA Piracy Rates
The level
1997 11,470,000 1,882,667 13,352,667 14 20
of
1998 11,210,000 2,062,667 13,272,667 16 20
1999 8,600,000 2,207,500 10,807,500 20 20
2000 13,530,000 5,057,143 18,587,143 21 20
2001 11,110,000 4,514,286 15,624,286 29 33
2002 n.a. n.a. n.a. 34 40
2003 7,300,000 4,866,667 12,166,667 40 40
Note: IPC piracy rate for 2002 is a projection due to lack of data.
piracy in the Music/Recording Industry has continued to climb since 1997 until 2003. In the IIPA
estimates, piracy rates had been consistent at 20% until 2000, but rose by 13.0 percentage points in
2001, and eventually reached 40% in 2002. The 2003 rate remained at 40%. IPC estimates coincided
with the IIPA level in 1999 and 2003. The IPC rates, however, rose to 21% in 1999, and also climbed by
8.2 percentage points in 2001 (Table 18).
Figure 15. IPC Music Piracy Rates and NUm ber of

Apprehended Firm s for IPR Violations: 1997-2001
1600 35
1400 30
1200 25
No. of Firms
Piracy Rates
1000
20
800
15
600
400 apprehended 10
Piracy rates
200 5
0 0
1997 1998 1999 2000 2001
Source: Number of Apprehended Firms - PIAC-IPR Executive Summary 1999;2001
Comparative analysis of the IPC music piracy rates and government enforcement activities showed that
as the number of apprehended firms declines, music piracy rate increases (Figure 15). When the raid
activities climbed in 2000, piracy rate still rose but only by 0.31 percentage points, the lowest registered
increase in rates from 1997-2001.
64
Figure 16. Num ber of Monitored Firm s for IPR Violations
and IPC Video Piracy Rates: 1997-2001
16000 80
14000 70
Piracy Rates
12000 60
No. of Firms
10000 50
8000 40
6000 monitored 30
4000 Piracy rates 20
2000 10
0 0
1997 1998 1999 2000 2001
Source: Number of Monitored Firms - PIAC-IPR Executive Summary 1999;2001
On the other hand, IPC estimates of video piracy showed an association with the monitoring activities of
all IPR enforcement agencies (Figure 16). In 1998, a year after the implementation of the IP Code, the
video piracy rate slid by 4 percentage points, while the number of monitored firms for IPR violations rose
to 10,138, from the 8,944 figure in 1997. As the monitoring activities intensified, video piracy, on the other
hand, declined. This was observed until the year 2000. In addition, analysis showed a –0.716 correlation
between the two variables.
Figure 17 shows that the number of apprehended firms for IPR violations, by selected agencies with
jurisdiction in confiscating pirated video products, had an opposite trend that of the estimated video piracy
rates. When the raid operations of the VRB, NBI, PNP and BOC declined from 1,148 in 1996 to 213 in
1997, the piracy rate rose by 8.6 percentage points. Moreover, as the arrest operations of the identified
agencies increased, piracy rates experienced a slowdown. Analysis showed a –0.71747 correlation
between the two variables.
In 2000, the impact of the increase in

Figure 17: Video Piracy Rates and the Number of the number of arrests was intensified by
Apprehended Firms for IPR Violations by Selected IPR the confiscation of 10 replicating
Enforcement Agencies: 1996-2003 machines, worth approximately PhP80
80 1400 million each. The seizure of 6 replicating
70 machines in 2001 had a similar effect on
1200
60
the state of movie copyright
1000 infringement in the country.
50
800 Furthermore, in 2003, the VRB was able
40
600 to seize a large number of machines
30 Video Piracy Rates and A/V equipment in both their
20 400
inspection and arrest operations, of 278
Apprehended Firms by
10 VRB, NBI, PNP, BOC
200 and 284 pieces, respectively. This also
0 0 helped in the decline of video piracy rate
1996 1997 1998 1999 2000 2001 2002 2003 during the year.
It is observed that music piracy rates

Sources: PIAC-IPR Executive Summary 1999; 2001; Sources: VRB Intelligence
responded to the apprehension activities
and Inspection Division, Summary Operations for CY 2002; IPO-Intellectual
of all the IPR enforcement agencies.
Property Rights Enforcement Unit Accomplishment Report 2003
The declining trend of the total
apprehension activities has encouraged the proliferation of the infringements. On the other hand, movie
piracy rates reacted more to the total monitoring activities of all agencies active in the PIAC-IPR from
1997-2001.
65
But it should be noted that, with the existence of the VRB, there was a lead agency that concentrated on
combating video piracy. Hence, there are relatively more efforts in enforcement with regards to curtailing
video piracy. As seen in Figure 17, the video piracy rates responded to the apprehension activities of
agencies (VRB, NBI, PNP, BOC) with jurisdiction over video piracy.
Private Sector Effort
The private sector has also been active in the enforcement activities regarding IPR protection. It has been
working hand-in-hand with the government agencies in their monitoring and apprehension activities.
The organizations composing the Intellectual Property Coalition (IPC) 59 help in the IPR protection in their
individual capacities. The Philippine Association of the Recording Industry (PARI) has been active in
enforcement of IP laws, and has assisted the VRB and NBI in their arrest and seizure activities. In 1999, it
had worked with the NBI, EIIB, and DOJ in confiscating pirated music CDs. It has also provided rewards
for information leading to illegal replication operations.
Another member organization, the Filipino Society of Composers, Authors, and Publishers FILSCAP, has
the Intellectual Property Foundation which aims to assist the government modernize IP legislation.
Moreover, it seeks to help the government build capabilities in IP administration and enforcement, and
take regional and international initiatives in IP. Its effectiveness, however, has been hampered by the lack
of resources.
Meanwhile, the IP-stakeholders themselves, and their companies, individually maintain pools of
investigators primarily for IPR protection. These people provide monitoring services against IPR
infringements, for them to report to the government enforcement agencies. They also help the
government gather enough pieces of evidence in support for the court to grant a search warrant.
Moreover, for additional man-power, they cooperate with the NBI or PNP in the agencies' raid activities.
Public Information and Education Campaign
Government Effort
The government educates and informs the Philippine society on issues regarding the Intellectual Property
Rights and the IP Code through series of seminars, workshops, trainings, exhibits, and the like. The main
government agencies that organize such activities are the DTI and IPO.
An example of such is the trade fair organized by the DTI-CWTRG in 2001. The fair, entitled
"Empowering Consumers, Enabling Business", showcased the products of the Philippine Standards (PS)
licensee holders, goods for which appropriate patents, trademarks and copyrights have been served, and
the manufacturers and services of selected companies duly accredited by appropriate government
59
The Intellectual Property Coalition will be discussed extensively in the succeeding sections of the report.
66
agencies. Meanwhile, to strengthen government and private partnership in the fight against piracy and
counterfeiting, an "Action Planning Workshop to Strengthen Public Appreciation and Enforcement of
IPRs" was conducted in the same year by the PIAC-IPR. The workshop came up with "A Resolution and
Strategic Action Plan to Strengthen Public Awareness and Enforcement of Intellectual Property Rights.
This plan, which was submitted to the Office of the President, was formulated to operate as the master
plan that records the programs and activities aimed to curtail piracy and advocate IPR protection in the
country.
When the PIAC-IPR was abolished60 in 2002, the IPREAP continued to implement the activities that were
formulated in the Strategic Action Plan. Hence, during the IPR week in October of 2002, the IPO (the
main coordinating body of the IPREAP) conducted the following:
 Exhibit of Filipino Industrial Designs and Creative Utility Models with the theme: “Bilog at
Parisukat, Disenyong Nakakagulat: Isang Kalipunan ng mga Original na Disenyong Gawang
Pinoy” held at the IPO Building Lobby, Makati City;
 On-the-Spot painting contest for high school students with the theme: “IP in the National
Development” held at the 2nd Floor, IPO Building;
 2nd Nationwide Essay Writing Contest on Intellectual Property Rights; and
 organized the Regional Symposium on Copyright held at the Westin Philippine Plaza Hotel on
October 24-25, 2002.
The same year, the IPO also sponsored several "Seminars on the IP Code" in Regions CAR, I, IV, VI, VII,
and XI.
To further promote awareness on IPR, the Intellectual Property Office, though the IPREAP and the help
of the IP Coalition and the IP Alliance of Cebu City, conducted the “IP Campaign Caravan 2003”. The
activity was a series of roundtable discussions on Intellectual Property Rights and the various projects of
IPREAP that were held in major key cities in the country, namely: Iloilo, Cebu, Baguio, Naga, Metro
Manila, and Davao City. Attendees of the seminars were local government officials, representatives from
government enforcement agencies, business organizations, and Intellectual Property (IP) stakeholders.
The projects of IP-REAP discussed during the roundtable discussions were:
 Local Government Unit (LGU) Template Ordinance, a legislation that seeks to address problems
in IPR infringements by curtailing the sale, rental, transfer and distribution of pirated, counterfeit
or fake goods, articles and services within the local government’s territorial jurisdiction;
 IP Seal and Education Campaign,
 Communication Plan, and
 Optical Media Bill (OMB).
The campaign resulted to the passage and adoption of LGU anti-piracy ordinance in Naga City, the first
Intellectual Property (IP) friendly city in the country. Meanwhile, the city government of Iloilo also issued
an anti-piracy local government ordinance to restrain the sale, rental, production and manufacture of
counterfeit and fake goods in the local market. The anti-piracy ordinances require that all business
licenses and permits issued by the City/Municipal governments to carry the express condition that the
licensee(s) will not engage in the sale, rental, transfer, distribution, manufacture and/or production of
pirated counterfeit or fake goods, articles or services. The creation of the ordinances was a step towards
the local government’s active participation in the fight against IPR infringements. These local laws are
expected to promote a better business environment for the manufacture, production and trade of
legitimate IPR-based goods and commodities.
60
Executive Order No. 72 that abolished the Presidential Inter-Agency Committee on Intellectual Property Rights (PIAC-IPR).
67
Another important outcome of the campaign was the endorsement of the Department of Interior and Local
Government for intellectual property rights protection. The Memorandum Circular (MC) No. 2003-229
issued last December 8, 2003, was a product of the Metro Manila seminar on IPR. This MC endorses the
anti-piracy LGU ordinance and enjoins all LGUs in the country to help enforce IPR protection.
Private Sector Effort
The government is not the only sector that responded to the problems brought about by the widespread
piracy. Feeling the need for IPR protection, the private sector bonded and gathered to form the
Intellectual Property Coalition (IPC). The coalition is composed by organizations of IP stake-holders
namely61:
 COMPACT, an association founded in 1987 to safeguard intellectual property rights.

 Filipino Society of Composers, Authors, and Publishers (FILSCAP) which represents a number of
individuals and companies in the music and publishing industries;
 Philippine Association of the Recording Industry Inc. (PARI) which represents most of the music
recording companies in the country;
 AVIDPHIL, the organization of legitimate videogram distributors in the country;
 Business Software Alliance, representing the major foreign business software companies;
 Asosasyon ng Musikong Pilipino Foundation which is comprised by music performers;
 Philippine Entertainment Industry Foundation, Inc. which works to promote the welfare of the
entertainment industry;
 Brand Protection Association, an organization of companies working for the protection of their
trademarks and other intellectual properties;
 MPDAP, the Motion Picture Distribution Association of the Philippines;
 KATHA, an association of Filipino composers; and
 The Quezon City Chamber of Commerce and Industry which is an association of businessmen,
SMEs and entrepreneurs in Quezon City;
 American Chamber of Commerce and Industry; and
 Microsoft, Inc.
The IPC has geared its activities towards the fulfillment of the following objectives 62:
 To provide a forum of discussion of intellectual property and related issues between and among
industry circles and the public in general;
 To formulate and adopt a strategic action plan that will identify the problems and issues affecting
and afflicting intellectual property rights, and propose solutions and remedial measures therefor;
 To participate in all processes and discussions, whether executive or legislative, that are called or
designed to generate or formulate government policy on all matters affecting intellectual property;
 To inform the general public of the pernicious effects of infringement of intellectual property rights
by organizing mass media campaigns;
 To liaise with government agencies on any or all matters that concern intellectual property rights;
 To serve as a private sector watchdog to monitor the implementation of laws, rules and
regulations for the protection of IPR by relevant government agencies; to condemn, criticize and
expose ineptitude and corruption; to commend, reward and recognize exemplary performance
and dedication to duty; and,
 To lend support and assistance to private and government initiatives that will enhance the
protection and promotion of IPR.
61
Lifted from the IPC Brochure.
62
Ibid
68
The IPC also promotes IPR protection and educate/update the public of IPR issues by participating and
providing television and print interviews. In these activities, the coalition also tries to convey the
significance of legislation in the fight against piracy. With this objective, the coalition adopted some of the
programs in the Strategic Action Plan and conducted activities that support the immediate passage of the
OMB into a law.
The coalition has conducted OMB advocacy activities in 2003, such as:
 visiting the Philippine senators to discuss the provisions of the bill, and accordingly ask for their
support for the passage of the proposed law. This was held last May of 2003;
 participating in the public hearings and consultative meetings conducted by the Senate
Committee on Public Information and Mass Media regarding the OMB; and
 releasing an advertorial or public statement for the immediate passage of the bill, entitled, “A Plea
For Action” that was published in one of the major Philippine dailies last June 3, 2003.
The IPC had been successful in this endeavor, for the Optical Media Act was ratified in February 2004.
As part of the Strategic Action Plan, the IPC also spearheaded the communications plan called “Project
Jump”. This project63, which was formulated with the assistance of the Ad Foundation of the Philippines,
aims to disseminate information regarding proper IP values and generate public support for Intellectual
Property Rights. The main objective of the plan is to make piracy socially unacceptable. The multi-
pronged strategy will be supported by a multi-media campaign aimed at the AB and C income households
with emphasis on youths ages 13 to 30. The media mix plans to involve all Free TV stations plus HBO,
MTV and other cable movie and music channels. The radio, meanwhile, will cover the urban FM stations.
Advertisements and cinema placements at major malls are also being considered. The plan is being
targeted to take-off in 2004.
The private sector's activities also involve advocacy, information dissemination and educating the public
of the negative social and economic effects of this IPR infringement. Example of such endeavor was the
"Rock Against Piracy" concert conducted early last 2002. This was participated by various local artists,
small and famous, who voiced out their opposition against piracy.
Meanwhile, the Business Software Alliance (BSA) Philippines 64, a non-profit international organization
that promotes the use of legal software, launched an anti-piracy campaign entitled “Assistance in
Software Auditing Program (ASAP)” in 2001. According to the BSA, ASAP aimed to help companies
“conduct software audit in order to adopt proper software management and be able to legalize if there is a
need to do so.” Once qualified, the company will be given by the BSA a Certificate of Clean Bill of
Software Health that guarantees a one-year grace period from legal actions initiated by members of the
BSA. In 2002, the BSA conducted the ASAP 2 Campaign.
The BSA has also established an Anti-Piracy Hotline in Metro Manila, wherein the public can report
software piracy occurrences and inquire on issues regarding software compliance and licensing. BSA
reported that the anti-piracy hotline “receives a large number of calls from individuals providing leads on
organizations that are either using or distributing pirated software”. As an incentive, the BSA provides a
“reward of up to P1 million to anyone who calls the anti-piracy hotline and able to provide information
leading to a successful enforcement action against a corporate end-user.” As a support activity to the
63
As mentioned earlier, this is also a part of the IPREAP activities, though the main mover of the endeavor is the IPC. It should be
noted that the IPC has been an active participant in the “2003 IP Campaign Caravan”, and has involved itself in the conduct of the
seminars in all the cities visited.
64
For more information on the BSA Philippines, visit www.bsa.org/philippines
69
hotline, the organization also launched an as campaign called “Speak up. Don’t cover up”, wherein the
anti-piracy hotline numbers of the BSA are advertised.
In addition, the Philippine Network Gaming Alliance (PNGA) also published an anti-piracy advertisement
in the newspapers in March 2003. This informed the public of the consequences of using pirated
entertainment software products. The ad aimed to instill in the consumers’ minds that “piracy of PC
games is a serious crime,” and the “consequence to offenders are very serious.” Information on the length
of imprisonment and the amount of fines that infringers would serve and pay are included in the
advertisement.
However, though efforts are being exerted (by both the government and private sectors) in combating IPR
infringements, more legislation and financial support for better enforcement of the IP laws are needed to
have an efficient and effective IP protection. Though the state of piracy in the country seems to respond
to the on-going endeavors, greater results could have been acquired if not for these limitations the
government and the private sector face.
INSIGHTS ON INTELLECTUAL PROPERTY PROTECTION
Figure 18.
INTELLECTUAL PROPERTY RIGHTS
SOCIAL ECONOMIC LEGAL
Social Social Demand Supply Laws Judiciary

attitudes Customs
De Jure
De facto Institutional
Institutional
Arrangement
Arrangements
70
Figure 18 depicts the relationships of the different sectors with regards to intellectual property rights.
Basic to this analysis is the understanding that this concern comprises legal, economic and social issues.
The legal aspect of it involves the laws governing the IPR and the judicial processes involved in trying
IPR cases. These are the de jure institutional arrangements wherein the main authority recognized is the
government. The Philippines has confronted this issue by passing laws that aim to protect the rights of IP
stake-holders. The progress in this area is continuous as the legal system tries to adapt to the changing
environment in the different sectors affected by IPR. Further, for better implementation of the said laws,
continuous development of the human capital is being undertaken. However, IPR concerns are also
affected by technological advancements. Legislations dealing with technological changes are needed for
timely and effective regulations to curtail IPR infringements. The Philippine legislation responded to this
need through the passage of the E-Commerce Law and the Optical Media Act.
The social side of IPR deals with the social attitudes and customs towards the legitimacy of the rights on
intellectual property. One of the vital concerns in intellectual property rights, or any property rights issue
for that matter, is the acceptance of society that intellectual property is an asset in which rights can be
allocated to. That it is an income stream that needs management, hence, the provision of the rights. It is
significant, therefore, that this knowledge or thinking be ingrained in the value system or norms of the
society. By doing so, individuals will be able form expectations that one may be hold on in his dealing with
others. Creation of de facto arrangements -- that is, self enforcing rules of property that have evolved out
of the interactions of individuals -- regarding the allocation and management of intellectual property rights
is possible as a result of this development.
First in this concept is the acceptance and recognition of people that a person has a right and claim over
the benefits and economic rents from his intellectual property. That the song, movie, or design, is a
private property of the creator, and the consumers are only provided with limited rights over it when
bought in the market. At a given price, selling price of the commodity, the consumers are extended with
use rights over the property, but not reproduction rights, management rights, etc. Basically, people gain
absolute rights on the medium wherein the intellectual property is stored, but limited rights over the
content. When these ideas are absorbed by society, individuals may develop their own arrangements in
protecting the IPR of stake-holders. However, it should also be mentioned that the responsibility of
protection does not only lie on the consumers, but also on the IP stake-holders themselves. They, too,
must be dedicated in safe-guarding their rights and persevere in the cause. With this, new social
practices may evolve with regards to the interactions of an individual vis-à-vis other people.
One such arrangement that may possibly emerge is the banning of mall and infrastructure owners on the
sale of pirate and counterfeit products in their establishments. Legal measures need not be put in place --
though they would definitely strengthen the authority of the arrangement -- but merely the cooperation of
the owners themselves can be an effective measure. They may set up their own set of operational and
collective choice rules in dealing with the issue. Consumers can also bond together and set up their own
norms regarding the IP protection.
In this line of thought, education of the public regarding the IPR issues must mainly deal with changing
the cultural perception of society. Consumers do not see that infringing on the rights of other people is
stealing, because they are not directly affected by the violation. Only a small percentage of the population
are artists, writers, inventors, innovators, designers, etc, hence, people do not feel the "real" damage.
Moreover, the macroeconomic effects of these IPR violations, i.e. lost revenues, forgone investments and
opportunities, are also abstract in concept to an ordinary consumer.
In order to prevent this alienation of the consumer to the intellectual property asset, intellectual property
protection must also involve intellectual property development. Filipinos must be encouraged to innovate,
invent, and create. The government needs to invest in R & D in the Philippines for advancement of the
Filipino intelligence and creativeness. Philippine research and development in the IP related industries
71
such as biotechnology, IT, chemical manufacturing, etc., must be supported for Filipinos to be able to
identify with, and better appreciate the concept of intellectual property protection.
On the economics side, an important factor that helps piracy and other IPR infringements survive is the
continuous support given by society in these activities. Without the demand, no one will produce the
supply. This is one area in which the Philippines also needs to emphasize on. The IPR activities have
mainly concentrated in the supply aspect of the problem, as seen by the increasing intensity of IPR
enforcement actions through the years. The different government agencies involved in IPR protection
have targeted the producers and distributors of the pirate and counterfeit products circulating in the
market. This produced positive results, as seen by the declining piracy rates, specifically in the software
and video industries.
However, the piracy rates are not the sole indicator of the state of IPR infringement. To evaluate the
situation, we must use the combination of the different indicators such as: the levels of consumption of
pirate and legal goods, their growth rates, the expansion/contraction of the legal and pirate markets, the
price factors, etc. Hence, the demand side of the market must also be dealt with, for the supply and
demand are the major economic forces that influence economic decisions of individuals.
In considering the demand of consumers, we enter into the area of market prices. We must admit that the
primary cause of the continuous proliferation of piracy is the wide price gap between the legitimate and
pirate goods. Though it is impossible for legitimate products to have a price competitive with that of the
pirate goods’, producers must acknowledge this factor, and address the concern in the best possible way.
Taking into account these factors, the task for IP protection is legal, economic and social in nature.
Therefore, it is relevant that we must focus, not only on one aspect the intellectual property rights
concept. Efforts must be directed in all three. Furthermore, it is not enough for the government to fight
IPR infringements alone. The support of the IP stake-holders, and the public as well, is very much
important for the effort to be a success.
CONCLUSION
Why protect the intellectual property rights? As seen from the software industry profile presented earlier,
there seem to be an inverse relationship between the software piracy rates and the new investments in
the industry. The same was observed in the analysis of the movie and recording industries. And from the
literatures studying piracy and foreign direct investments, the same conclusion has been attained.
Foreign direct investments increase as piracy rates decrease, or put in a different light, FDI also depends
on the level of protection on IPR.
Findings in a study conducted by the International Data Corporation (IDC) in 2003 showed that a 10-point
reduction in software piracy results in: 1) acceleration in the IT sector growths, 2) creation of new
employment and higher tax revenues to the government, 3) countries with higher piracy rates obtain
larger benefits from piracy reduction, and 4) a 10-point reduction in piracy is achievable as nearly two-
thirds of countries studied have done it once.
The same impression may be derived from IPR infringement or piracy reductions in other industries. As in
the movie and recording industries, curtailing piracy would create additional movies, productions, and
recording albums in the industries. More economic activities would translate to more opportunities, jobs,
and greater output. Further, additional tax revenues for the government would also be earned.
72
A lot of industries, like the manufacturing, biotechnology, chemical and pharmaceutical, are also IPR
based. Depending on the importance of the industry to the over-all economy, an improvement in these
business sectors would significantly help in the development of the macroeconomy. And one of the
avenues by which the government can help these industries achieve development is by intensifying the
protection of IPR.
The Philippine government has been a staunch supporter of intellectual property rights. IPR protection
has been a state policy as provided by the Constitution; and more legislation have been put in place in
order to adapt to the changing environment in the IPR system. The E-commerce Act has provisions to
address copyright infringement in the internet, while the Optical Media Bill was ratified to tackle optical
disc piracy. The country has also joined international treaties and agreements in support of IPR.
The government and the private sectors in the Philippines are actively participating in IPR related
endeavors. In 2003 alone, the Intellectual Property Office and the Intellectual Property Coalition had
conducted several activities regarding IPR advocacy and information dissemination. Meanwhile, the
government enforcement agencies have continuously conducted monitoring and apprehension activities
against IPR infringers. They have also been developing their human resources through the conduct of
seminars and trainings on IPR issues and concerns.
However, a lot still needs to be done in order to curtail piracy and other IPR violations in the country. One
of the downside in the Philippine case, with regards to IPR, is the prevailing social acceptance of IPR
infringements. Hence, efforts must also be geared toward addressing this concern. Enforcement
activities, placement of laws and other IPR endeavors will not be successful if the social aspect of IPR
protection will be neglected. Therefore, the legal, economic and social aspects of IPR protection must all
be given emphasis to completely safeguard the rights of intellectual property rights holders.
Though the focus of the study is on copyright industries and on piracy, it should be noted that the paper
supports all IPR-related industries and advocates for the development of the Philippine intellectual
capital/assets. Thus, both the government and society must give emphasis to protecting the rights of our
artists, composers, performers, as well as our scientists, inventors, researchers, and other innovators.
REFERENCES
1995 Census-Based Municipal Population Projections. National Statistical Coordination Board
Association of Video Distributors of the Philippines (AVIDPHIL)
Bengzon, Anthony D. Bengzon & Negre Intellectual Property Attorneys. Personal Interview
Bromley, D.W. and M.M. Cernea. 1989. The Management of Common Property Natural Resources: Some
Conceptual and Operational Fallacies. World Bank Discussion Papers, No. 57. The World Bank
Washington D.C.
Bureau of Investments, Department of Trade and Industry
73
Bureau of Trade and Promotions, Department of Trade and Industry
Calimag, Peter L. Angara Abello Concepcion Regala & Cruz Law Offices. Personal Interview.
Clark Development Corporation
Commission on Higher Education
Correa, C. “Bilateral Investment Agreements: Agents of New global Standards for the Protection of
Intellectual Property Rights?” August 2004 in
http://www.grain.org/briefings/?id=186Commission on Higher Education
Cuevas, A.C. 1994. Institutional Arrangements in Common Pool Resources: The Case of Fishery. A Thesis
Manuscript Submitted to the Faculty of the Department of Economics, College of Economics,
UPLB.
Cuevas, S.C. 1997. Influence of Technology in Determining the Exclusive and Non-exclusive Property
Rights: The Case of Fishery. A Thesis Manuscript Submitted to the Faculty of the Department of
Economics, College of Economics, UPLB.
“Economy, Information Technology, and the Critical Role of the Software and Services Sector: Focus the
Philippines. 2002-2003. “ Sallstrom Consulting and Nathan Associates Inc. 2002.
E-Philippines Strategic Plan. Information Technology and Electronic Commerce Council (ITECC). February
2003
Economic Indicators. National Statistical Coordination Board. December 1996.
74
Economic Indicators. National Statistical Coordination Board. October 2003.
Eighth Annual BSA Global Software Piracy Study. June 2003.
Electronic Commerce Act, Republic Act No. 8792.
“Expanding Global Economies: The Benefits of Reducing Software Piracy.” International Data
Corporation (IDC). 2003
Feder, G. and D. Feeny. 1991. Land Tenure and Property Rights: Theory and Implications for Development
Policy. The World Bank Economic Review 5: 135-53.
“Filipino IT Workers Rank High in Survey”. Philippine Daily Inquirer, June 1, 2002.
Fiscor, Mihaly. April 2003. “Intellectual Property and Economic Growth with Special Attention to Copyright
and Related Rights.” Lecture prepared for the WIPO-ESCWA Arab Regional Conference on
Recent Developments in the Field of Intellectual Property, Beirut, May 5 and 6, 2003.
Film Ratings Board. Local Film Industry.
Foreign Direct Investment Quarterly Report of the National Statistical Coordination Board. 2000
Functional Literacy, Education and Mass Media Survey (FLEMMS). National Statistics Office. 1994
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Garcia, Eduardo T., Jr. " An Economic Analysis of the Effects of Audio CD Piracy to the Local Record
Industry". A Thesis Manuscript Submitted to the Faculty of the Department of Economics, College
of Economics, UPLB. March 2002.
Information Technology (I.T.) Services Industry Profile, Bureau of Export Trade Promotion, Department of
Trade and Industry
International Data Corporation (IDC). Expanding Global Economies: The Benefits of Reducing Software
Piracy. 2003
Intellectual Property Coalition (IPC) Brochure
Intellectual Property Office-Intellectual Property Rights Enforcement Unit. Accomplishment Report.

January-December 2002
“Intellectual Property Rights in the Philippines: Brief Background”. Chan Robles Virtual Law Library.
International Intellectual Property Alliance 2003 Special 301 Reports PHILIPPINES
International Intellectual Property Alliance (IIPA) Comments on Special 301. Out-of-Cycle Review on the
Philippines. October 30, 2002
International Intellectual Property Alliance 2001 Special report METHODOLOGY
Mendoza, Oz. "All About Money". www.philmusic.com
Mendoza-Vianzon, Marlene. Philippine IT Market Metrics. The IDC Advantage. 2001
National Accounts of the Philippines: 1998-2000.National Statistical Coordination Board
National Statistics Office
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National Statistical Coordination Board
National Statistics Office
Office of the President Inter-Agency Committee on Intellectual Property Rights Executive Summary.
January-December 1999.
Office of the President. "Response to the International Intellectual Property Alliance (IIPA) 2003 Special
301 Report for the Philippines. March 2003.
Parkin, M and R. Bade. Macroeconomics, 2nd Edition. 1992
PDCP Bank Industry Digest. "Computer Software and Services Industry: New Applications Drive Demand.
Vol. 20, No.5 0115-4419. May 1996.
Philippine Association of the Record Industry, Inc.
Philippine Export Zone Authority
Philippine Software Industry Association, Inc.
Philippine Statistical Yearbook. National Statistical Coordination Board. 2002
Philippine Standard Industrial Classification (PSIC). 1994.
“Piracy talk With Philippines’ BSA president by Geoffrey P Ramos, October 28, 1999. www.cw.com.hk
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Schlager, E. and E. Ostrom. 1992. Property-Rights Regimes and Natural Resources: A Conceptual
Analysis. Land Economics 68:249-62.
Seventh Annual BSA Global Software Piracy Study. June 2002.
Subic Bay Metropolitan Authority
Somera, Bienvenido, Jr. President, Philippine Intellectual Property Alliance. Personal Interview.
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Robert JA, Jr., June 24, 2002. www.cyberdyaryo.com
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World Intellectual Property Organization. Guide on Surveying the Economic Contribution of the Copyright-
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www.cbbb.org/features/preventpiracy.asp
www.forecastcenter.com/public/guest/GNEI.htm
www.Tradelinephil.dti.gov.ph/betp/ITServices
www.tradeport.org/ts/countries/philippines/isa/isar0006.html
www.wipo.org
78
APPENDIX
MOTION PICTURE PIRACY ESTIMATION METHODOLOGY
IIPA Methodology
Video: The term encompasses movies provided in video cassette as well as in optical disc formats. Losses
are estimated using one of the following methods:
1. For developed markets:

a) The number of stores that rent pirate videos and the number of shops and vendors that
sell videos are multiplied by the average number of pirate videos rented or sold per shop
or vendor each year.
b) The resulting total number of pirate videos sold and rented each year in the country is then
multiplied by the percent of those pirate videos that would have been sold or rented
legitimately and adjusted to reflect the US producer’s share of the market.
Total pirate videos sold/rented = # of stores/shops that sell and rent pirate videos * ave. # of pirate
videos rented/sold per shop each year
Loss due to piracy = Total pirate videos sold and rented per year * (% videos that would have been
sold or rented legitimately)
2. For partially developed markets:

a. The number of legitimate videos sold or rented in the country each year is subtracted from
the estimated total number of videos sold or rented in the country annually to estimate the
number of pirate videos sold or rented annually in the country.
b. The resulting total number of pirate videos sold and rented each year in the country is then
multiplied by the percent of those pirate videos that would have been sold or rented
legitimately and adjusted to reflect the US producer’s share of the market.
Total pirate videos sold/rented = estimated total # of videos sold/rented  # of legitimate videos
sold/rented
79
Loss due to piracy = Total pirate videos rented/sold * (% pirate videos that would have been
sold/rented legitimately
3. For fully pirate markets:

The estimated number of pirate videos of U.S. motion pictures sold or rented in the country
each year is adjusted to reflect the wholesale price of legitimate videos which equals losses
due to video piracy.
IPC VIDEO PIRACY ESTIMATION METHODOLOGY
National Statistics Office data (1994) on the Proportion of HH by Ownership of Radio, TV, VCR, and PC
1. Determine the growth in sales of VHS, VCD player, and DVD players and PCs
2. Determine the frequency of movie patronage of Filipinos (either per day/month/year)
3. Determine the number of units of videos and VCDs sold/rented per year
4. Determine the Total Revenue from video sales
Formula:
General Concept:
Demand = Supply
Demand  Supply = Undersupply
Excess demand will be supplied by the underground economy (pirated videos)
Where:
Base yeart – % of # of HH owning VCRs and PCs at year t
VCR (and other appliances used for video viewing) and PC Ownership x = Number of HH with VCRs and
PCs at year x = (t+1)
DEMANDV,x – demand for film videos (V) at year x = (t+1)
80
SUPPLYV,x – units of videos/VCDs sold at year t+1
Formula:
VCR = (Base yeart * Total # of HHt) + Total number of appliances for video viewing sold
PC Ownershipx = Number of Installed PCs
VCR and PC Ownership1995 = (% of HH owning VCRs and PCs at year 1994) + number of VCRs sold (in
units)1995 + Number of Installed PCs
DEMANDV,x = VCR and PC Ownershipx * frequency of movie patronage at year t+1
Total Pirated Movies = DEMANDV,x  SUPPLYV,x
Piracy Rate = (Total Pirate Movies/ DEMANDV,x) * 100
MUSIC/RECORDING PIRACY
IIPA METHODOLOGY
The RIIA generally bases its estimates on local surveys of the market conditions in each country. The
numbers produced by the music industry generally reflect the value of sales of pirate product rather than
industry losses, and therefore undervalue the real harm to the interests of record companies, music
publishers, performers, musicians, songwriters, and composers.
Where RIIA has sufficient information relating to known manufacture of pirate recordings that emanate from
a third country, this loss data will be included in the loss number fro the country of manufacture rather than
the country of sale.
81
In certain instances appropriate, RIAA employs economic data to project the likely import or sale of
legitimate sound recordings, rather than merely reporting pirate sales. In these instances, projected unit
displacement is multiplied by the wholesale price of legitimate articles in that market rather than the retail
price of the pirate goods.
IPC METHODOLOGY
General Concept:
Demand = Supply
Demand  Supply = Undersupply
Given : TR = RL + RP
Where: RL - Revenue of Legitimate activity; RP – revenue of piracy
RP = TR - RL
(RP / TR) * 100 = piracy rate
82

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CASE STUDY FOR ECE BOARD EXAM, PRACTICE OF ECE IN OTHER COUNTRIES,

TRACKING SYSTEM, RELEVANCE AND NON RELEVANCE OF PROFFESIONAL

2:30 – 3:30 MWF

Engr. Jefferson Walcien

December 11, 2018

CASE STUDY FOR ECE BOARD EXAM

STATEMENT OF THE PROBLEM

2007 35% 35% 30% (Nov) 30% (Nov)

2008 35% (March) 35% (March) 36% 36%

2009 24% (March) 24% (March) 29% 26%

2010 27% 27% 21% 23% (Nov)

2011 44.97% 36.36% 36.87% 44.57%

2012 53.55% 47.58% 51.57% 53.67%

2013 37% 31.9% 34.51% (Dec) 38.50%

2014 35.24% (March) 29.6% 31.58% (Sept) 33.15%

2015 34.95% 23.23% 39.94% 31.06%

2016 36.95% 30.08% 40.36% 44.85%

2017 41.27% 40% 46.72% 55.36%

2017 45.36 47.73% 49.49% 50.94%

October 2018 Board Exam Schedule

SYLLABI FOR THE ELECTRONICS ENGINEER (ECE) LICENSURE EXAMINATION

II. GENERAL ENGINEERING & APPLIED SCIENCES (20%)

III. ELECTRONICS ENGINEERING (30%)

IV. ELECTRONICS SYSTEMS AND TECHNOLOGIES (30%)

CHED MEMORANDUM ORDER (CMO) No. 24, Series of 2008

Section 8. Curriculum Outline

Third Year- First Semester

No. of Hours Total

Third Year- Second Semester

No. of Hours Total

No. of Hours Total

Fourth Year- Second Semester

No. of Hours Total

Fifth Year- First Semester

No. of Hours Total

Fifth Year- Second Semester

No. of Hours Total

Suggested Free or Track Elective Courses

● Fundamentals of Biomedical Engineering

Third Year – First Semester

CHED Subjects Units SLU Subjects Units

Third Year – Second Semester

CHED Subjects units SLU Subjects Units

Subjects Units Subjects Units

Principles of Communications 4 Principles of Communications 6

Fourth Year- Second Semester

CHED Subjects units SLU Subjects Units

Fifth Year- First Semester

Fifth Year- Second Semester

CHED Subjects units SLU Subjects Units

5. Review Center Factor

6. Laboratory Equipment and Facilities Factor

1. CHED Memorandum regarding the track system of ECE

a. Lessen the number of units by merging similar subjects

5. Review Center Factor

a. School-based board exam review for students

6. Laboratory Equipment and Facilities Factor

a. Requesting the university or school administration for a higher budget

a. Extend the time of preparation for the board exam

a. Extend the time limit of the board exam

CHED Memorandum regarding the track system of ECE

b.Encourage hired Recommend to the SLU authorities the SLU

b.Encourage students to b.1.Studentjs must choose proper Me as a student