INTRODUCTION
Allow me to congratulate the Inter-Agency Committee on Intellectual Property Rights (IAC-IPR) on this occasion of its first anniversary.

A year ago, we established the Inter-Agency Committee on Intellectual Property Rights under EO No. 60 as our instrument for improving and enforcing existing laws for the protection of intellectual property rights.

We did this to strengthen the collaboration among various government agencies and the private sector in combating infringements, piracy and counterfeiting.

Since then, the 13 government agencies and the two NGOs who composed the IAC-IPR have mounted a concerted and aggressive effort in pursuing the committee’s mandate and functions.

Last year, we succeeded in effecting the removal of the Philippines from the United States 301 priority watch list. The establishment of the IAC-IPR doubtlessly contributed to this favorable development.

This was an achievement that proved how serious we are in protecting intellectual property rights in the Philippines.
IPR AND INDUSTRIAL DEVELOPMENT
The role that the intellectual property system plays in the country’s economic and industrial development cannot be overemphasized.

From the perspective of local investors, authors, trademark owners and producers, IPR protection is indispensable for the development of domestic industries that do more than copy foreign models, but show the creativity and ingenuity of the Filipino.

Provided with adequate protection and incentives, the Filipino inventor can develop the critical technology required for the rapid development of our industrial and agricultural sectors.

Last month, one of the recipients of the Outstanding Filipino Award (TOFIL) of the Philippines Jaycee Senate was a noted inventor and manufacturer of farm implements, Boni R. Isidro of Bulacan, the awardee for science and technology. He is best known for his threshers.

There are many other Filipino inventors like Mr. Isidro who, through their inventions, have improved the quality of life of our people. These pioneers have had to invest a great deal of time, resources and effort, not to mention their education, training and talent, to make this possible.

To encourage more inventors like Mr. Isidro, we must grant them proper and adequate incentives.

Under the 1992 Inventor and Invention Incentives Act (RA 7459), inventors enjoy income tax exemptions for the first 10 years from the date of the first sale of the invention. They are exempted from business license fees, among others.

Through the IAC-IPR, we will strengthen the protection of their inventions against piracy and counterfeiting so that they will earn rightful profits for their inventions and recover their investment.
PROTECTING OUR ARTISTS
We plan to do the same thing for our artists, writers, performers, composers, and musicians whose talents have not only enriched our lives, but have gained worldwide recognition for the Philippines as well.

Thus, this administration has given priority to the development of culture and the arts. We have adopted the National Development Plan for Culture and the Arts (NDPCA) to promote a renaissance in Filipino culture.

Institutions critical to the plan are now in place, one of which is the national endowment fund for cultural and artistic programs.

The government is also taking steps to develop the local movie, television and music industries into export industries. We hope to turn Metro Manila and Subic into the Hollywood of the Philippine’s and of the Asia-Pacific region.

To promote cultural renewal, it is important that the intellectual creations of Filipino artists and musicians be recognized and protected.

In respect of our composers, for example, we should give value to their intellectual creations and their works of art by paying them adequate royalties every time their music is performed for profit. And it is only just and fair that all establishments using their musical compositions should start paying the royalties due them.

I am pleased to announce that upon my instructions, the Department of Trade and Industry (DTI) has submitted a study on how to effectively enforce nationwide the music copyrights of composers and authors.

From the perspective of foreign investments — especially those that hasten the pace of technology transfer, our interest is to build up the confidence of investors in the country’s capability to protect their intellectual property rights the minute they bring in their own technology and product ideas into the Philippines.

We must also contend with international development that impact on foreign trade and investments.

For example, major markets for our export products — such as garments, furniture, and sugar — require that we protect their IPRs, or otherwise face trade sanctions. This can adversely affect the achievements of our exports and investments targets.

Intellectual property rights protection, therefore, is clearly indispensable if we are to achieve the goals of “Philippines 2000!!!”.
OUR INTERNATIONAL COMMITMENTS
Towards making the Philippine business environment more attractive and competitive in the race to attract foreign investments, the Philippine government remains committed to evaluating its present laws on IPR in consonance with our multilateral and bilateral commitments.

On December 15 last year, the Philippines, together with 117 countries accepted the conclusions of the Uruguay Round (UR) Multilateral Trade Negotiations under the auspices of the General Agreement on Tariff and Trade (GATT) because it would bring about substantive benefits to our economy.

The recently concluded UR negotiations have further strengthened the multilateral trading system by bringing in agriculture and services into the GATT, achieving lower tariffs, removing non-tariff barriers, improving GATT rules and discipline including dispute settlement, and ensuring a more adequate protection of intellectual property rights.

In the area of IPR, two benefits we can derive from the UR are the greatly reduced risk of unilateral trade action (such as the Section 301 actions of the US Omnibus Trade Law) and strengthened dispute settlement procedures.

But availing ourselves of these benefits is not without cost. In the area of IPR, we have to accede to tighter rules for protection, and accept the possibility of cross retaliation — which means that continued violation of commitments in the service areas of IPR, for example, could bring about a retaliation in the goods area if authorized by the new world trade organization.

The UR provisions of the trade aspects of intellectual property (TRIPs) have set norms and standards on IPR which all the member countries of the GATT will have to adopt in their respective laws.
ACCEPTING THE T.R.I.P.’S
Most of these norms and standards however, are already found in Philippine laws. In Asia, we have one of the most comprehensive legal system dealing with intellectual property. As early as 1947, the Philippines legislated a patent of trademark system based on American law. In 1972, PD 49, the decree on intellectual property, was issued containing almost all the modern principles on copyrights, including the grant of copyrights to computer software.

Likewise, the rights of performers, sound recording companies and broadcasting companies known as neighboring rights were recognized and protected.

Unlike other developing countries especially in Asia, our acceptance of the TRIPs agreement does not involve a basic change in our existing intellectual property protection system. It would merely introduce changes to update our laws in line with the developments of our rapidly modernizing world.

Considering the many benefits and advantages the Philippines would gain in accepting the UR agreement, I am clearly in favor of Philippine accession to the substantive provisions of the 1971 Berne Convention.

Earlier today, I signed our country’s instrument of accession thereto and an endorsement letter to the Senate, requesting it to ratify the same as soon as possible.

I would like to assure you that we will also take decisive action to amend our laws to adopt TRIPs standards. These bills are now being rushed and the DTI will ensure their filing with congress shortly.
IMPROVING ENFORCEMENT
While intellectual property rights laws in the Philippines are comprehensive enough, more needs to be done to improve their enforcement.

We would like to thank Stanford Research Institute (SRI) International for undertaking an in-depth study on the problems of the adjudication process of IPR cases.

I have taken note of and am very much alarmed by the serious delays and inefficiencies which the existing adjudication procedures inflict on IPR holders whenever they seek redress for their grievances.

I assure you that we will give serious consideration to measures that you proposed to clear the procedural bottlenecks you have identified.

We see a convergence between government plans and those of SRI in certain proposed measures to solve the problems in the adjudication process.

We have already considered the need to set up special courts to hear exclusively IPR cases. I do not have any objection to this proposal.

I would like to take this opportunity to direct IAC-IPR Chairman Secretary Navarro to coordinate with Executive Secretary Teofisto Guingona on the referral of this proposal to Chief Justice Andres Narvasa of the Supreme Court. We will request him to act on this favorably.

The threshold on the amounts involved for the regional trial court (RTC) to acquire jurisdiction with respect to civil actions involving real property, maritime and probate cases, etc. Has been increased substantially. This will unload the dockets of the RTC and enable them to dispose of their backlog expeditiously. We also hope to raise the penalties for the infringement of IPR, and simplify the procedures for the prosecution of IPR violators through legislation.

Finally, allow me to commend the IAC-IPR for its impressive performance during its first year of operations in battling piracy and counterfeiting.

I commend Secretary Roy Navarro who has ably chaired this committee, and Chairman Javier Carbonell, of the Videogram Regulatory Board (VRB), your committee executive director.

I also thank the other agencies of government and the two private sector groups, namely COMPACT and IPAP, who are members of the IAC-IPR, for their wonderful work in safeguarding intellectual property rights in the country.
COMPLEMENTATION OF RESOURCES
At the same time, I should emphasize that the private citizen and corporations who are the owners of IPRs remain the driving force in the effectiveness of any enforcement program.

They have the motive to defend and protect the business enterprise they have established through hard work against those who threaten their business by counterfeiting their products or stealing their ideas.

The role of government is to provide an adequate system of remedies that the IPR holder could avail of inexpensively and expeditiously.

Thus, the winning formula in the battle against infringers and counterfeiters is complementation of the resources of the private and public sectors.

A very good example of that complementation is the holding of this symposium today. I would like to thank the sponsors, namely Philexport and COMPACT, for making today’s affair possible.

The fight against piracy and counterfeiting is a difficult one. The government has scarce resources to fight this battle successfully.

The outstanding coordination between the public sectors members of the IAC-IPR on the one hand, and its private sector members on the other, is a decisive factor in attaining our objectives.

So keep up the good work and I am confident that very soon, we will be able to turn into reality the theme of this symposium which is “‘Philippines 2000!!!’ Through IPR Protection”.

We are engaged in no less than the protection and promotion of Filipino genius, and this noble cause deserves our strongest support, and our more strenuous cooperative efforts.

Thank you, and good day.