IPO and NTC Ink Rules for Coordinating Cable Piracy Cases

UNCLAS SECTION 01 OF 02 MANILA 001393 SIPDIS SIPDIS SENSITIVE STATE FOR EAP/MTS STATE PASS TO USTR FOR BWEISEL AND DKATZ USDOC FOR 4430/ITA/MAC/SBERLINGUETTE USDOC PASS USPTO FOR PFOWLER BANGKOK FOR CHRIS SONDERBY AND JENNIFER NESS E.O. 12958: N/A TAGS: ECON ETRD KIPR BEXP RP SUBJECT: IPO and NTC Ink Rules for Coordinating Cable Piracy Cases Sensitive but Unclassified - Not for Internet Distribution REF: 06 MANILA 2167 ¶1. (SBU) Summary. A potentially significant step in combating cable piracy in the Philippines took place on April 4, when the Intellectual Property Office (IPO) and the National Telecommunications Commission (NTC) released the implementing rules and regulations for a memorandum of agreement (MOA) on cooperation in enforcement of laws against cable piracy. Representatives of the pay television industry have expressed optimism about the new arrangement, which both industry and the Embassy had lobbied for. End summary. A Mechanism for Combating Cable Piracy -------------- ¶2. (SBU) According to the regional trade association, the Cable and Satellite Broadcasting Association of Asia (CASBAA),cable piracy in the Philippines costs the legitimate pay television industry about $80 million per year. CASBAA has criticized the National Telecommunications Commission for not blocking the license renewals of pirating companies and scored the Department of Justice for not moving on international channels' legal cases against copyright violators. John Medeiros, executive director of CASBAA, told EconCouns that many cable companies in the rural Philippines openly steal signals but that the GRP has taken little action against the practice. He argued that acceptability of cable piracy has reached the point that the owner of Maguindano Skycable in Cotabato City has made public statements openly encouraging cable operators to take the signals of international channels without paying. ¶3. (SBU) Much of the difficulty in investigating and prosecuting cable piracy arises from the lack of clear jurisdiction over infractions. The IPO has the jurisdiction to administer the Intellectual Property Code, which includes copyright protection. The NTC, however, is responsible for the granting of licenses to, and oversight of, radio and television broadcasting, which extends to cable television and direct broadcast satellite services. The NTC has never had a clear mandate to address intellectual property issues, and has not revoked the licenses of cable or satellite distributors for piracy. ¶4. (SBU) The regulations released on April 4 implement a June 2006 memorandum of agreement under which the IPO would investigate allegations of IP violations and the NTC would use its regulatory powers to deny licenses to offending firms. Regulations: Most Important Points -------------- ¶5. (U) Below are the highlights of the new regulations: --Complaints of violation of laws involving intellectual property rights against any radio or television broadcast operators, to include cable television operators and direct broadcast satellite service operators, will be filed directly with the IPO. --The NTC will have the authority to refer cases of cable piracy that it discovers to the IPO. It will also advise IPR holders, giving complainants the option of pursuing the case before the IPO or with the regular courts. If the complainant decides to pursue the case with the IPO, the NTC will refer the records of the case to the IPO. Once filed with the IPO Bureau of Legal Affairs, the IPO will notify NTC of such filing and IPO will proceed to "resolve the complaint in accordance with its rules and regulations." --IPO will provide NTC with copies of orders, resolutions, or decisions regarding cases that have been referred by the NTC involving IPR violations. Based on these orders, the NTC may either issue a directive to the party concerned to comply with the order of the IPO or issue an order to show cause within 10 days why its license or authority should not be suspended. The NTC will then evaluate whether or not to grant or renew a license. Should the IPO issue a cease and desist order in a pending case involving an applicant, the NTC may not issue or renew the permit, license or authority of the applicant, unless there is sufficient showing that the order has been complied with or has been lifted. --The NTC is responsible for monitoring the compliance of radio and television broadcast operators, including cable television operators and direct broadcast satellite service operators, in relation to laws and regulations on IPR. The assistance of local government units and the private sector can also be sought to monitor and MANILA 00001393 002 OF 002 enforce the compliance of the operators. The NTC can be deputized by the IPO to help in implementing IPO orders and decisions. --Both the NTC and IPO agree to continue cooperation in the promotion and protection of IPR through the exchange of information and conduct of workshops and trainings among their personnel to enhance capability in resolving issues involving telecommunications, broadcasting, cable piracy, and intellectual property. Industry Guardedly Optimistic -------------- ¶6. (SBU) Medeiros of CASBAA told EconOff that the issuance of the regulations represents a significant step forward. In particular, he was pleased to see several points that industry representatives had made at public hearings on draft regulations incorporated into the final version. The industry is anxious to put the new procedures to the test by filing cases. Comment -------------- ¶7. (SBU) The issuance of the regulations is a welcome development for content providers. Implementation, however, is likely to be a challenge. Post will continue to follow the issue, and will provide updates via Intellipedia. End comment. Kenney