TRADE AND COMMERCE

Regional Conference on Optical Piracy in Southeast Asia, 31 March 2005

CHAIRMAN MANZANO, SECRETARY SANTOS, DIRECTOR GENERAL ADRIAN CRISTOBAL, (AMBASSADOR ) MR. ROBERT LUDAN, MR. DARRYL, LADIES AND GENTLEMEN, GOOD EVENING.

LET ME START BY CONGRATULATING THE OPTICAL MEDIA BOARD FOR TAKING THE INITIATIVE TO PUT TOGETHER THIS REGIONAL CONFERENCE ON OPTICAL DISC PIRACY IN SOUTHEAST ASIA IN ORDER TO COORDINATE ANTI-PIRACY ACTIVITIES ACROSS THE REGION. I CANNOT OVEREMPHASIZE THE NEED TO SET-UP AN ANTI-PIRACY NETWORK OF OPERATIVES ACROSS THE REGION TO MONITOR THE TRAFFIC OF DISCS AND MACHINES AND THE ACTIVITIES OF SYNDICATES, TO IDENTIFY KEY PLAYERS, AND HAVE A MORE COORDINATED AND EFFECTIVE CAMPAIGN AGAINST OPTICAL DISC PIRACY.

THE OMB IS A SMALL OFFICE WHICH HAS ONLY BEEN IN EXISTENCE FOR ONLY ONE YEAR, BUT IT HAS BEEN A VERY ACTIVE AGENCY THAT HAS CAUGHT THE ATTENTION OF THE PUBLIC OVER THE PAST YEAR, AND BROUGHT TO THE NATIONAL CONSCIOUSNESS THE ISSUES INVOLVED IN OPTICAL DISC PIRACY.

I AM PLEASANTLY SURPRISED TO SEE THE SUPPORT OF THE PRIVATE SECTOR TO THE OMB, BOTH LOCALLY AND ABROAD. I KNOW THAT THE PRIVATE SECTOR HAS BEEN VERY SUPPORTIVE OF THE OMB NOT ONLY FOR THIS CONFERENCE, BUT ALSO IN TERMS OF INFORMATION SHARING, LOGISTICAL SUPPORT, AND FORENSICS.

I BELIEVE IT IS MORE THAN JUST THE FACT THAT THE INDUSTRIES WHO SUPPORT THE OMB ARE AFFECTED BY PIRACY. STATISTICS RELEASED BY THE INTERNATIONAL INTELLECTUAL PROPERTY ALLIANCE (IIPA) RECENTLY SHOWED PIRACY RATES GOING DOWN IN NEARLY ALL SECTORS OVER WHICH THE OMB HAS JURISDICTIONAL RESPONSIBILITY. FROM 89% TO 85 % FOR MOVIES, 95% TO 90% FOR GAMES, 72% TO 70% FOR BUSINESS SOFTWARE, AND TWENTY TWO (22) MILLION US DOLLARS TO TWENTY MILLION US DOLLARS FOR MUSIC. FOR A SMALL AGENCY THAT HAS BEEN IN EXISTENCE FOR ONLY A YEAR, I MUST ADMIT YOU DID A GOOD JOB! FOR THIS REASON, I ASK EVERYONE AROUND IN THIS CONFERENCE TO GIVE A BIG, BIG ROUND OF APPLAUSE FOR THE INITIAL BUT SUBSTATIVE ACHIEVEMENTS OF THE MEN AND WOMEN OF OMB. (PAUSE)

MOREOVER, THE IIPA RECOMMENDED AN OUT-OF-CYCLE REVIEW, AFTER WHICH, IF CERTAIN CONDITIONS ARE MET BY THE PHILIPPINE GOVERNMENT, CONSIDERATION SHOULD BE GIVEN TO REMOVING THE PHILIPPINES OUT OF THE PRIORITY WATCHLIST OF THE UNITED STATES TRADE REPRESENTATIVE AND DOWNGRADED TO WATCHLIST STATUS.

AFTER 8 YEARS IN THE PRIORITY WATCHLIST, THAT IS A MOST WELCOME RECOMMENDATION. THERE IS THEREFORE HOPE THAT WE MIGHT EVENTUALLY BE CLEARED OF BEING IN A WATCHLIST. INDEED, WE WOULD BE VERY HAPPY IF THE CREATION OF THE OMB AND ITS PROGRAMS AND MAIN THRUSTS OF TRANSPARENCY AND MAXIMIZING RESOURCES WILL BE THE LAST INGREDIENTS IN ACHIEVING THE CORRECT FORMULA FOR INTELLECTUAL PROPERTY PROTECTION FOR THE PHILIPPINES, ALONG WITH THE EFFORTS OF OTHER AGENCIES INVOLVED WITH THE PROTECTION OF INTELLECTUAL PROPERTY.

CHAIRMAN MANZANO SAID LAST YEAR THAT HE FELT THAT REMOVING THE PHILIPPINES FROM THE WATCHLIST WOULD BE “A TALL ORDER,” BUT THAT HE HOPED THAT THE OMB’S EFFORTS COULD CONTRIBUTE TO THE DOWNGRADING OF THE PHILIPPINES FROM PRIORITY WATCHLIST TO WATCHLIST STATUS. NOW WE KNOW THAT THEY JUST MIGHT.

I AM SURE THAT IT MUST BE DIFFICULT FOR CHAIRMAN MANZANO, BEING A REPRESENTATIVE OF THE MOVIE INDUSTRY, TO BALANCE THE INTERESTS OF THE MOVIE INDUSTRY WITH OTHER SECTORS AFFECTED BY OPTICAL DISC PIRACY, NAMELY THE MUSIC, SOFTWARE, GAMES, AND BOOK PUBLISHING SECTORS.

BUT, JUST LIKE ANY PARENT WITH MANY CHILDREN, I AM SURE HE HAS REALIZED THAT HE HAS TO GIVE EQUAL ATTENTION TO ALL SECTORS. THIS IS WHY I AM GLAD, JUDGING FROM THE SUPPORT THIS CONFERENCE HAS RECEIVED, AND JUDGING FROM THE DIVERSE INTERESTS REPRESENTED HERE TONIGHT, THAT CHAIRMAN MANZANO IS SUPPORTED NOT JUST BY THE MOVIE INDUSTRY, BUT BY OTHER INDUSTRIES AS WELL, FOR WHOSE PROTECTION THE LAW WAS ALSO MADE.

BEING FROM MEDIA INDUSTRY MYSELF, I KNOW HOW JEALOUS AND LOUD ENTERTAINMENT INDUSTRY PEOPLE CAN BE. BUT I AGREE WITH CHAIRMAN MANZANO’S STAND FOR THE OMB TO EQUALLY SERVE ALL SECTORS AFFECTED BY OPTICAL DISC PIRACY. AFTER ALL, THE LAW WAS MADE TO PROTECT THE CREATIVE SECTOR – THIS MEANS NOT JUST ARTISTS AND MOVIE PRODUCERS, BUT ALSO RECORD PRODUCERS, MUSICIANS, COMPOSERS, SOFTWARE AND GAME DEVELOPERS AND PROGRAMMERS, GRAPHIC ARTISTS, WRITERS AND BOOK PUBLISHERS.

SENATOR FRED LIM HAS SAID IT WELL: ‘THE LAW MUST BE APPLIED TO ALL, OR NONE AT ALL’.

FOR ONE THING, THE PHILIPPINES IS BLESSED WITH SO MANY TALENTED SINGERS AND MUSICIANS. IT CANNOT BE DENIED THAT FILIPINOS LOVE TO SING. YET, IN A POPULATION OF 84.2 MILLION, A “GOLD” RECORD MEANS ONLY 15,000 LEGITIMATE COPIES SOLD. A “PLATINUM” RECORD, ONLY 30,000 UNITS.

BUT IF THAT’S SAD, WHAT IS EVEN SADDER IS THAT WITH SO MANY TALENTED SINGERS AND COMPOSERS, WE HAVE YET TO HAVE ANOTHER BIG FILIPINO HIT AFTER “ANAK” BY FREDDIE AGUILAR.

NOT ALL IS TO BE BLAMED ON PIRACY OF COURSE. THESE PROBLEMS WERE EXISTING BEFORE COMPACT DISCS BECAME COMMERCIALLY ACCEPTABLE AND AVAILABLE. BUT FOR SURE, PIRACY IS ONE OF THE FACTORS THAT LIMIT THE ABILITY OF OUR MUSICIANS AND COMPOSERS TO GAIN INTERNATIONAL ACCEPTANCE.

ON THE OTHER HAND, THERE ARE MANY TALENTED AND BRILLIANT COMPUTER SCIENCE STUDENTS IN OUR SCHOOLS WHO I BELIEVE HAVE AN EQUAL CHANCE AS STUDENTS IN OTHER COUNTRIES TO DEVELOP USEFUL AND POPULAR SOFTWARE AND GAMES.

AS WE ARE NOW IN THE INFORMATION AGE AND COMMUNICATION BEING VERY EASY THROUGH THE INTERNET, IT IS NOT AT ALL INCONCEIVABLE FOR THESE STUDENTS TO SET UP THEIR OWN SOFTWARE AND GAME DEVELOPMENT COMPANIES HERE IN THE PHILIPPINES, TO BE INDEPENDENT BUSINESSMEN WHO OWN AND CONTROL THE RIGHTS TO THEIR WORK, AND JUST TRANSACT BUSINESS THROUGH THE INTERNET, MAYBE EVENTUALLY EARNING ROYALTIES FROM LICENSING AND MERCHANDISING, ALL FROM THE COMFORT OF HOME.

INSTEAD, OUR COMPUTER SCIENCE GRADUATES AND GRAPHIC ARTISTS END UP ABROAD, GETTING PAID BY THE HOUR BY SOFTWARE DEVELOPMENT COMPANIES WHO WILL EVENTUALLY OWN THE COPYRIGHT TO THEIR CREATIONS AND REAP ALL OF ITS BENEFITS.

NEEDLESS TO SAY, IT IS THE REVERSE SCENARIO WE’D LIKE TO ACHIEVE --- A LEGAL CLIMATE THAT WILL GIVE ENOUGH PROTECTION TO INTELLECTUAL PROPERTY THROUGH STRONG LEGISLATION, EFFECTIVE ENFORCEMENT, AND QUICK RELIEF THROUGH THE JUDICIAL SYSTEM, SO THAT COMPANIES THAT OWN COPYRIGHT, PATENTS, AND TRADE MARKS WILL FEEL SAFE THAT THEIR PRODUCTS WILL NOT BE SUBJECTED TO UNFAIR COMPETITION BY PIRATES, AND SO THAT THEY CAN ENJOY A THRIVING BUSINESS, SOURCE SUPPLIES AND SERVICES LOCALLY, CREATE JOBS AND MOVE THE ECONOMY UPWARD.

I THEREFORE ENCOURAGE THE EFFORTS OF MOVIE INDUSTRY - THE MOST EXPERIENCED OF THE SECTORS IN ANTI-PIRACY ENFORCEMENT AND PERHAPS THE OLDEST CHILD OF CHAIRMAN MANZANO, NO OFFENSE TO LUIS - TO GIVE THEIR WHOLEHEARTED SUPPORT TO THE OMB.

AFTER ALL, IF THE OMB SUCCEEDS IN TAKING US OUT OF THE PRIORITY WATCHLIST, OR, JUST SIMPLY BE EFFECTIVE ENOUGH TO REDUCE PIRACY DRASTICALLY, IT IS THE ENTIRE COUNTRY THAT WILL BENEFIT FROM IT.

WE WILL BENEFIT IN TERMS OF THE PRIVILEGES WE RECEIVE UNDER THE GENERALIZED SYSTEM OF PREFERENCES. WE WILL BENEFIT IN TERMS OF FOREIGN INVESTMENTS TO BE MADE BY COMPANIES THAT TRADE IN INTELLECTUAL PROPERTY. WE WILL BENEFIT IN TERMS OF OTHER OPPORTUNITIES WHICH COME WITH HAVING A BUSINESS CLIMATE CONDUCIVE TO THE GROWTH OF CREATIVE INDUSTRIES – A STRONGER PESO, LOWER PRICES FOR BASIC COMMODITIES. IT WILL ALSO MEAN MORE HIGH-PAYING JOBS FOR OUR COLLEGE GRADUATES, AND MORE EMPLOYMENT OPPORTUNITIES IN THIS COUNTRY.

I SALUTE THE SUPPORTERS OF THIS REGIONAL CONFERENCE FOR SETTING ASIDE SELF-INTEREST AND SEEING THE WISDOM IN PUTTING RESOURCES TOGETHER TO ACHIEVE COMMON GOALS WITH THE GOVERNMENT. I DO BELIEVE WHAT IS TAKING PLACE HERE AND NOW IS A TRUE “PUBLIC-PRIVATE PARTNERSHIP AGAINST PIRACY.”

FINALLY, I’D LIKE TO SAY THAT I AM PROUD THAT IT IS THE PHILIPPINES THAT HAS INITIATED THIS EFFORT. BUT I AM SINCERELY GRATEFUL TO THE COUNTRIES WHO HAVE PARTICIPATED IN THIS CONFERENCE. YOUR PRESENCE HERE TODAY GIVES ME HOPE THAT PIRACY CAN BE COMPLETELY ERADICATED THROUGH THE COORDINATED EFFORT OF THE COUNTRIES AROUND THE REGION. I KNOW THIS IS JUST THE FIRST OF MANY MORE CONFERENCES TO COME.

I WISH THE OMB AND THE DELEGATES OF THE FIRST REGIONAL CONFERENCE ON OPTICAL DISC PIRACY IN SOUTHEAST ASIA A FRUITFUL MEETING. GOOD LUCK AND GOOD EVENING TO EVERYONE!

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