Wednesday, May 28, 2014

ASEAN Integration as how it affects Intellectual Property Law





The Association of Southeast Asian Nations (ASEAN) was formed in 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand to promote political and economic cooperation and regional stability. Brunei joined in 1984, shortly after its independence from the United Kingdom, and Vietnam joined ASEAN as its seventh member in 1995. Laos and Burma were admitted into full membership in July 1997 as ASEAN celebrated its 30th anniversary. Cambodia became ASEAN’s tenth member in 1999.

The ASEAN Declaration in 1967, considered ASEAN’s founding document, formalized the principles of peace and cooperation to which ASEAN is dedicated. The ASEAN Charter entered into force on 15 December 2008. With the entry into force of the ASEAN Charter, ASEAN established its legal identity as an international organization and took a major step in its community-building process.

The ASEAN Community is comprised of three pillars, the Political-Security Community, Economic Community and Socio-Cultural Community. Each pillar has its own Blueprint approved at the summit level, and, together with the Initiative for ASEAN Integration (IAI) Strategic Framework and IAI Work Plan Phase II (2009-2015), they form the Roadmap for and ASEAN Community 2009-2015.[1]

The ASEAN region is highly diverse and its transformation as a single bloc with a harmonized set of laws and procedures in IP has been a challenge. ASEAN continues to acknowledge the important role played by IP in social, technological, and economic progress. At the same time, recognizing that for ASEAN to fully utilize the benefits of IP as a tool that would help the region achieve economic integration by 2015, the AWGIPC has designed a unique way of contributing to this goal. Instead of trying to formulate a single set of laws and designing a harmonized regional system in IP, the AWGIPC has crafted its own means of integrating through a higher level of cooperation by undertaking programs and activities together, with AMSs strengthening linkages with each other to improve their capacity, and participating in global IP structures, subject to the capacity and readiness of each AMS.

ASEAN will move towards the agreed goals as a region even while preserving its diversity, without compromising the varying levels of development of Member States, but charting for the region a unique brand of an ASEAN IP System. To achieve the 2015 goal of economic integration, the AWGIPC will build on past accomplishments, intensify the level of cooperation among AMSs by building on each other’s strengths, and continue partnering with organizations and institutions in order to move forward collectively towards a single direction, albeit at varying paces.

This Action Plan recognizes the challenges that continue to face IP Offices in the region, such as modernizing their office infrastructures and constantly improving their operations, the struggle with backlogs in both patents and trademarks, the growing need for work sharing in order to ease workloads. Over the past years, ASEAN has experienced difficulties in utilizing IP as a tool to develop the innovative capacity of the region, raise awareness among its nationals so that they could protect their inventions and creations, and make use of IP to jumpstart innovation and encourage technological advances in the region.[2]



Intellectual Property Rights in the Philippines

 Intellectual property (IP) has become a central element in economic and cultural policy in a world in which the source of wealth is increasingly intellectual, as opposed to physical, capital and which markets are distributed across the globe. It is as an intangible asset for a company which has created innovation goods and services to access the global market.
In this situation, IP policy in ASEAN countries can also help to incubate a vibrant culture of creativity and invention for facing global competition in international trade. Furthermore, IP policy can influence the volume and quality of external trade and investment, the transfers of advanced as well as proprietary technologies. Thus, IP creativity is a major determinant of local value added and external competitiveness. IP protection and enforcement have come to the forefront as a key international trade issue for many countries including in ASEAN countries. It is very crucial issue after signing the agreement of establishing the world trade organization (WTO )where all ASEAN countries are WTO member. WTO Agreement can be used as an embryo of law umbrella on IPR because it contained Trade-Related Aspects of Intellectual Property Rights agreement (WTO-TRIPS) in which sets minimum standards on IPRs protection and enforcement.[3]

            It is expressly stated in the Intellectual Property Code of the Philippines the State recognizes that an effective intellectual and industrial property system is vital to the development of domestic and creative activity, facilitates transfer of technology, attracts foreign investments, and ensures market access for our products.  It shall protect and secure the exclusive rights of scientists, inventors, artists and other gifted citizens to their intellectual property and creations, particularly when beneficial to the people, for such periods as provided in this Act.

With the State Policy of the Intellectual Property Code of the Philippines it aims to protect the rights of the people who have discovered new ideas and invented things that are beneficial to society.
However, it seems that the government is lacking the capabilities to fulfill such goal. It is one of the issues that our country is facing. Foreign investors are having second thoughts in investing in the country on the ground that their investments might not be given the right protection that it needed.

            One good example of Intellectual Property case is Fredco Manufacturing Corporation vs President Fellows of Harvard College (Harvard University). In this case petitioner Fredco filed for the cancellation of registration against respondents resident and Fellows of Harvard College (Harvard University), a corporation organized and existing under the laws of Massachusetts, United States of America, petitioner alleged that it is the lawful owner of the name and mark “Harvard’.

            The Supreme court ruled against Fredco. Fredco’s use of the mark “Harvard,” coupled with its claimed origin in Cambridge, Massachusetts, obviously suggests a false connection with Harvard University. On this ground alone, Fredco’s registration of the mark “Harvard” should have been disallowed.

Indisputably, Fredco does not have any affiliation or connection with Harvard University, or even with Cambridge, Massachusetts. Fredco or its predecessor New York Garments was not established in 1936, or in the U.S.A. as indicated by Fredco in its oblong logo. Fredco offered no explanation to the Court of Appeals or to the IPO why it used the mark “Harvard” on its oblong logo with the words “Cambridge, Massachusetts,” “Established in 1936,” and “USA.” Fredco now claims before this Court that it used these words “to evoke a ‘lifestyle’ or suggest a ‘desirable aura’ of petitioner’s clothing lines.” Fredco’s belated justification merely confirms that it sought to connect or associate its products with Harvard University, riding on the prestige and popularity of Harvard University, and thus appropriating part of Harvard University’s goodwill without the latter’s consent.

Section 4(a) of R.A. No. 166 is identical to Section 2(a) of the Lanham Act,20 the trademark law of the United States. These provisions are intended to protect the right of publicity of famous individuals and institutions from commercial exploitation of their goodwill by others.21 What Fredco has done in using the mark “Harvard” and the words “Cambridge, Massachusetts,” “USA” to evoke a “desirable aura” to its products is precisely to exploit commercially the goodwill of Harvard University without the latter’s consent. This is a clear violation of Section 4(a) of R.A. No. 166. Under Section 17(c)22 of R.A. No. 166, such violation is a ground for cancellation of Fredco’s registration of the mark “Harvard” because the registration was obtained in violation of Section 4 of R.A. No. 166.

Second, the Philippines and the United States of America are both signatories to the Paris Convention for the Protection of Industrial Property (Paris Convention). The Philippines became a signatory to the Paris Convention on 27 September 1965. Articles 6bis and 8 of the Paris Convention.[4]

Another issue that is ranging in the country is the rampant piracy; it is one of the reasons why foreign investors are scared in investing in the Philippines. The government has been trying to eradicate such violation of intellectual property right for quite some time.

 In an article of the Manila Times last May 11, 2014 representatives from the government’s Intellectual Property Office (IPO), Optical Media Board (OMB), the Philippine National Police (PNP), and the Philippine Association of the Record Industry (PARI) came together to reinstate and reaffirm their commitment to curb piracy, illegal cam-cording and other IPR violations.

Working with the theme “Movies: A Global Passion,” the government aims to fully protect the integrity of local and international films by going after vendors of pirated movies and violators who illegally download films online.
“We are not only using ‘iron fists’ in reprimanding violators. We are going to the root of the problem by sitting down in discussion with vendors [of pirated material] and also working with different schools to discuss the importance of intellectual property,” informed Dennis Pinlac, the executive director of the OMB in a press conference.

For the public’s information, there have already been successful convictions of IP violators in the country. The PARI recently shut down Kickass Torrents (KAT.ph), “a torrent site that hosts illegal music and film download for free.”
“We filed a case in the IPO instead of regular courts because we felt that being the agency tasked to oversee the protection of intellectual property, the IPO would be in the best position to understand the issues. Just six months later, we succeeded in taking down the KAT.ph domain name through a temporary restraining order that IPO granted against Kickass Torrents,”
(Atty. Marivic Benedicto, legal counsel of PARI.)





ASEAN Cooperation with the Intellectual Property Rights

The creation, commercialization and protection of intellectual property (IP) and IP Rights (IPRs) can be a significant source of comparative advantage for ASEAN companies and a major driver of regional economic growth and social development.

IP infrastructure and expertise vary considerably among AMSs. There is a significant gap between ASEAN-6 and ASEAN-4 (Cambodia, Lao PDR, Myanmar and Viet Nam). Such differences have implications on the nature and intensity of regional cooperation and technical assistance needs within ASEAN as well as between different sub-groups of AMSs.

There is a very limited supply of IP-related skilled and experienced human resources and institutional capacity in ASEAN. Efforts have been made to implement an “ASEAN-helps-ASEAN” approach wherever feasible, including the exchange of policy lessons learned by Member States from signing on to international treaties and implementing programs to protect IPRs.[5]

IPR protection is the foundation for building innovative and competitive economic environment. At the same time, IP system is traditionally a sovereign system and thus can be a challenge for trade in goods associated with high technology, technological trade, and hence regional economic integration in general. To overcome this challenge, several regional blocs (Europe, Andean Community and MERCOSUR) have a common system for IPR examination, and/or common IPR rules. The ASEAN Intellectual Property Right Action Plan 2004-2010, and the recent 2011-2015 Action Plan provide the framework and work program for the advancement of IPR regimes in ASEAN. To this end, ASEAN has taken regional cooperative measures with several targets including developing a framework for simplification, harmonization, registration and protection of IPRs.[6]

            With the ASEAN Integration it will help our government to attract foreign investors and to draw them to trust our country with respect to their inventions and discoveries. The ASEAN has provided an Action Plan which identifies five (5) strategic goals that will serve as framework for its work in the next five years. The implementation of the activities and the achievement of deliverables identified under each of the five strategic goals will be monitored and regularly evaluated according to measurable performance indicators that will be agreed among AMSs.

Strategic Goal 1:
A balanced IP system that takes into account the varying levels of development of Member States and differences in institutional capacity of national IP Offices to enable them to deliver timely, quality, and accessible IP services to promote the region as being conducive to the needs of users and generators of IP.

Strategic Goal 2:
Developed national or regional legal and policy infrastructures that address evolving demands of the IP landscape and AMSs participate in global IP systems at the appropriate time.

Strategic Goal 3:
The interests of the region are advanced through systematic promotion for IP creation, awareness, and utilization to ensure that IP becomes a tool for innovation and development; support for the transfer of technology to promote access to knowledge; and with considerations for the preservation and protection of indigenous products and services and the works of their creative peoples in the region.

Strategic Goal 4:
Active regional participation in the international IP community and with closer relationships with dialogue partners and institutions to develop the capacity of Member States and to address the needs of stakeholders in the region.

Strategic Goal 5:
Intensified cooperation among AMSs and increased level of collaboration among them to enhance human and institutional capacity of IP Offices in the region.[7]
ASEAN continues to acknowledge the important role played by IP in social, technological, and economic progress and regional integration. With this ASEAN IPR Action Plan 2011-2015, the AWGIPC has designed a unique approach toward regional cooperation which takes into account different levels of capacity of the Member States in development and integration, balances access to IP and protection of IPRs, and responds to the current needs and anticipates future demands of the global IP system.

The initiatives and deliverables identified under each of the five goals of this Action Plan will help AMSs meet the objectives of the AEC by transforming ASEAN into an innovative and competitive region through the use of IP for their nationals, and ensuring that the region remains an active participant in the international IP community and the world economy. The strategic goals embody a higher level of regional cooperation with AMSs acting as champions for areas that will be more focused and with specific deliverables that will move the region closer to its goals of development and integration.[8]

            With the help of the government and the upcoming ASEAN Integration in 2015 issues concerning intellectual property rights will be given priority because one of the goals of the ASEAN is to provide protection of the products of each member states.


REFERENCES:

http://www.state.gov/p/eap/regional/asean/
http://www.aseanip.org/ipportal/index.php?option=com_content&view=article&id=168:asean-cooperation-in-intellectual-property-rights&catid=218:key-documents&Itemid=653
http://dirp4.pids.gov.ph/ris/dps/pidsdps1301.pdf









[1] http://www.state.gov/p/eap/regional/asean/
[2] http://www.ecap-project.org/sites/default/files/IP_resources/ASEAN%20IPR%20Action%20Plan%202011-2015.pdf
[3] http://www.iiste.org/Journals/index.php/JLPG/article/viewFile/8494/8433
[4] http://sc.judiciary.gov.ph/jurisprudence/2011/june2011/185917.html
[5] http://www.aseanip.org/ipportal/index.php?option=com_content&view=article&id=168:asean-cooperation-in-intellectual-property-rights&catid=218:key-documents&Itemid=653
[6] http://dirp4.pids.gov.ph/ris/dps/pidsdps1301.pdf
[7]http://www.ecap-project.org/sites/default/files/IP_resources/ASEAN%20IPR%20Action%20Plan%202011-2015.pdf
[8] http://www.ecap-project.org/sites/default/files/IP_resources/ASEAN%20IPR%20Action%20Plan%202011-2015.pdf

Wednesday, May 7, 2014

RA 10173 and one of its grey areas.

INTRODUCTION
            With the world of technology we can almost do everything in a fast paced mode. Messages can be delivered in just one click, information can be easily researched and accessed and communication is just one click away from our cellphones or computers. In short, with the advanced technology it makes our life a whole lot easier.
            With all these technology booming all over the world it comes with the responsibility of protecting our right in terms of privacy.
            The right to privacy is a constitutional right provided under our 1987 Constitution particularly in the Bill of Rights. It is pertinent under the following provisions:
            Section 1.  No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied equal protection of the laws;
            Section. 2. The right of the people to be secure in their persons, houses papers, and effects against unreasonable searches and seizures of whatever nature and for any purpose shall be inviolable, and no search warrant or warrant of arrest shall issue except upon probable cause to be determined personally by the judge after examination under oath or affirmation of the complainant and the witnesses he may produce, and particularly describing the place to be searched and the persons or things to be seized.
Section. 3. (1) The privacy of communication and correspondence shall be inviolable except upon lawful order of the court, or when public safety or order requires otherwise as prescribed by law.
Section. 6. The liberty of abode and of changing the same within the limits prescribed by law shall not be impaired except upon lawful order of the court. Neither shall the right to travel be impaired except in the interest of national security, public safety, or public health as may be provided by law.
Section. 8. The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged.
Section. 17. No person shall be compelled to be a witness against himself.
With the above provisions our legislature aimed in protecting the rights of the people in terms of communication, association and information. With the enactment of RA 10173 or Data Privacy Act of 2012 the question arises whether such Act can uphold the privacy of an individual’s personal information.
One of the issues is whether or not a person violates the law when he/she gives a phone number of another person registered in his/her phone to a third person.
OVERVIEW OF RA 10173
            RA 10173 also known as Data Privacy Act of 2012, is an act protecting individual personal information and communications systems in the government and the private sector, creating for this purpose a national privacy commission and for other purposes.
            The scope of the Act is provided under Section 4 which states that this Act applies to the processing of all types of personal information and to any natural and juridical person involved in personal information processing including those personal information controllers and processors who, although not found or established in the Philippines, use equipment that are located in the Philippines, or those who maintain an office, branch or agency in the Philippines subject to the immediately succeeding paragraph: Provided, That the requirements of Section 5 are complied with.
This Act does not apply to the following:
(a) Information about any individual who is or was an officer or employee of a government institution that relates to the position or functions of the individual, including:
(1) The fact that the individual is or was an officer or employee of the government institution;
(2) The title, business address and office telephone number of the individual;
(3) The classification, salary range and responsibilities of the position held by the individual; and
(4) The name of the individual on a document prepared by the individual in the course of employment with the government;
(b) Information about an individual who is or was performing service under contract for a government institution that relates to the services performed, including the terms of the contract, and the name of the individual given in the course of the performance of those services;
(c) Information relating to any discretionary benefit of a financial nature such as the granting of a license or permit given by the government to an individual, including the name of the individual and the exact nature of the benefit;
(d) Personal information processed for journalistic, artistic, literary or research purposes;
(e) Information necessary in order to carry out the functions of public authority which includes the processing of personal data for the performance by the independent, central monetary authority and law enforcement and regulatory agencies of their constitutionally and statutorily mandated functions. Nothing in this Act shall be construed as to have amended or repealed Republic Act No. 1405, otherwise known as the Secrecy of Bank Deposits Act; Republic Act No. 6426, otherwise known as the Foreign Currency Deposit Act; and Republic Act No. 9510, otherwise known as the Credit Information System Act (CISA);
(f) Information necessary for banks and other financial institutions under the jurisdiction of the independent, central monetary authority or Bangko Sentral ng Pilipinas to comply with Republic Act No. 9510, and Republic Act No. 9160, as amended, otherwise known as the Anti-Money Laundering Act and other applicable laws; and
(g) Personal information originally collected from residents of foreign jurisdictions in accordance with the laws of those foreign jurisdictions, including any applicable data privacy laws, which is being processed in the Philippines.
            SEC. 3. Definition of Terms. – Whenever used in this Act, the following terms shall have the respective meanings hereafter set forth:
(a) Commission shall refer to the National Privacy Commission created by virtue of this Act.
(b) Consent of the data subject refers to any freely given, specific, informed indication of will, whereby the data subject agrees to the collection and processing of personal information about and/or relating to him or her. Consent shall be evidenced by written, electronic or recorded means. It may also be given on behalf of the data subject by an agent specifically authorized by the data subject to do so.
(c) Data subject refers to an individual whose personal information is processed.
(d) Direct marketing refers to communication by whatever means of any advertising or marketing material which is directed to particular individuals.
(e) Filing system refers to any act of information relating to natural or juridical persons to the extent that, although the information is not processed by equipment operating automatically in response to instructions given for that purpose, the set is structured, either by reference to individuals or by reference to criteria relating to individuals, in such a way that specific information relating to a particular person is readily accessible.
(f) Information and Communications System refers to a system for generating, sending, receiving, storing or otherwise processing electronic data messages or electronic documents and includes the computer system or other similar device by or which data is recorded, transmitted or stored and any procedure related to the recording, transmission or storage of electronic data, electronic message, or electronic document.
(g) Personal information refers to any information whether recorded in a material form or not, from which the identity of an individual is apparent or can be reasonably and directly ascertained by the entity holding the information, or when put together with other information would directly and certainly identify an individual.
(h) Personal information controller refers to a person or organization who controls the collection, holding, processing or use of personal information, including a person or organization who instructs another person or organization to collect, hold, process, use, transfer or disclose personal information on his or her behalf. The term excludes:
(1) A person or organization who performs such functions as instructed by another person or organization; and
(2) An individual who collects, holds, processes or uses personal information in connection with the individual’s personal, family or household affairs.
(i) Personal information processor refers to any natural or juridical person qualified to act as such under this Act to whom a personal information controller may outsource the processing of personal data pertaining to a data subject.
(j) Processing refers to any operation or any set of operations performed upon personal information including, but not limited to, the collection, recording, organization, storage, updating or modification, retrieval, consultation, use, consolidation, blocking, erasure or destruction of data.
(k) Privileged information refers to any and all forms of data which under the Rules of Court and other pertinent laws constitute privileged communication.
(l) Sensitive personal information refers to personal information:
(1) About an individual’s race, ethnic origin, marital status, age, color, and religious, philosophical or political affiliations;
(2) About an individual’s health, education, genetic or sexual life of a person, or to any proceeding for any offense committed or alleged to have been committed by such person, the disposal of such proceedings, or the sentence of any court in such proceedings;
(3) Issued by government agencies peculiar to an individual which includes, but not limited to, social security numbers, previous or cm-rent health records, licenses or its denials, suspension or revocation, and tax returns; and
(4) Specifically established by an executive order or an act of Congress to be kept classified.
            Chapter 5 provides for the Security of Personal Information. The personal information controller must implement reasonable and appropriate organizational, physical and technical measures intended for the protection of personal information against any accidental or unlawful destruction, alteration and disclosure, as well as against any other unlawful processing.
(b) The personal information controller shall implement reasonable and appropriate measures to protect personal information against natural dangers such as accidental loss or destruction, and human dangers such as unlawful access, fraudulent misuse, unlawful destruction, alteration and contamination.
(c) The determination of the appropriate level of security under this section must take into account the nature of the personal information to be protected, the risks represented by the processing, the size of the organization and complexity of its operations, current data privacy best practices and the cost of security implementation. Subject to guidelines as the Commission may issue from time to time, the measures implemented must include:
(1) Safeguards to protect its computer network against accidental, unlawful or unauthorized usage or interference with or hindering of their functioning or availability;
(2) A security policy with respect to the processing of personal information;
(3) A process for identifying and accessing reasonably foreseeable vulnerabilities in its computer networks, and for taking preventive, corrective and mitigating action against security incidents that can lead to a security breach; and
(4) Regular monitoring for security breaches and a process for taking preventive, corrective and mitigating action against security incidents that can lead to a security breach.
(d) The personal information controller must further ensure that third parties processing personal information on its behalf shall implement the security measures required by this provision.
(e) The employees, agents or representatives of a personal information controller who are involved in the processing of personal information shall operate and hold personal information under strict confidentiality if the personal information are not intended for public disclosure. This obligation shall continue even after leaving the public service, transfer to another position or upon termination of employment or contractual relations.
(f) The personal information controller shall promptly notify the Commission and affected data subjects when sensitive personal information or other information that may, under the circumstances, be used to enable identity fraud are reasonably believed to have been acquired by an unauthorized person, and the personal information controller or the Commission believes (bat such unauthorized acquisition is likely to give rise to a real risk of serious harm to any affected data subject. The notification shall at least describe the nature of the breach, the sensitive personal information possibly involved, and the measures taken by the entity to address the breach. Notification may be delayed only to the extent necessary to determine the scope of the breach, to prevent further disclosures, or to restore reasonable integrity to the information and communications system.
(1) In evaluating if notification is unwarranted, the Commission may take into account compliance by the personal information controller with this section and existence of good faith in the acquisition of personal information.
(2) The Commission may exempt a personal information controller from notification where, in its reasonable judgment, such notification would not be in the public interest or in the interests of the affected data subjects.
(3) The Commission may authorize postponement of notification where it may hinder the progress of a criminal investigation related to a serious breach.
CONCLUSION
According to the above definition it can be concluded that a person who gives the number of another person to a third person is not covered by RA 10173. First, a data controller as defined by the law refers to a person or organization who controls the collection, holding, processing or use of personal information, including a person or organization who instructs another person or organization to collect, hold, process, use, transfer or disclose personal information on his or her behalf. Therefore the person who disclose the number is not considered as data controller as provided in the definition of the law. Second, the act of disclosing the number of another person cannot be considered as data processing. Processing as defined by the law refers to any operation or any set of operations performed upon personal information including, but not limited to, the collection, recording, organization, storage, updating or modification, retrieval, consultation, use, consolidation, blocking, erasure or destruction of data.
Hence, the situation under consideration is not violative of RA 10173 it would seem that there is no remedy but to enact another law that would cover such issue.