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Viewing cable 07MANILA1393, IPO and NTC Ink Rules for Coordinating Cable Piracy Cases

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Reference ID Created Released Classification Origin
07MANILA1393 2007-05-02 08:41 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Manila
VZCZCXRO2906
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #1393/01 1220841
ZNR UUUUU ZZH
O 020841Z MAY 07
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6330
INFO RUEHZS/ASEAN COLLECTIVE IMMEDIATE
RUCPDOC/USDOC WASHDC IMMEDIATE
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