The Philippines has been identified in the US Trade Representative’s (USTR) 2021 Review of Notorious Markets for Counterfeiting and Piracy as one of physical market piracy hotspots alongside 34 others in 18 countries that comprise the notorious market list (NML).
According to the report, Greenhills Shopping Center in San Juan, Metro Manila has many storefronts that sell counterfeit goods, including electronics, perfumes, watches, shoes, accessories, and fashion items.
The report noted that despite established enforcement and monitoring agreements between the local government unit of San Juan and the multi-agency task force created by the National Committee on Intellectual Property Rights and the Department of Information and Communications Technology, the illegal activities continue to thrive.
“Sellers of counterfeit goods are reportedly becoming bolder in displaying and openly discussing the illicit nature of the counterfeit goods, instead of discretely hiding the counterfeit goods under the tables as they did in the past,” the report read.
The US agency is concerned that the expansion of the Greenhills Shopping Mall, with a new seven-story building in the Greenhills area set to open in early 2022, may further embolden counterfeit sellers to defy the law and create problems with the original manufacturers of the pirated brands.
The USTR stressed that commercial-scale copyright piracy and trademark counterfeiting cause significant financial losses for US right holders and legitimate businesses and undermines critical US comparative advantages in innovation and creativity.
It also poses significant risks to consumer health and safety, it said.
On a positive note, the NML review cited the Philippines Bureau of Customs for its efforts to seize counterfeit medicine and personal protective equipment, such as face masks, in Manila, as well as a substantial amount of counterfeit luxury goods from the Baclaran Bagong Milenyo Plaza, a shopping mall in Pasay City.
The USTR noted that while the sale and distribution of counterfeit and pirated goods online was a growing concern, physical markets continue to enable substantial trade in counterfeit and pirated goods.
To combat the global trade in counterfeit goods and online piracy, the Intellectual Property Office of the Philippines signed several memorandums of understanding in 2021.
IPOPHL’s MOU with the International Trademark Association helps the fight against counterfeiting by improving the capacities of trademark examiners, customs, and enforcement authorities, as well as building public awareness of the dangers of counterfeit goods.
Another MOU with the Asia Video Industry Association improved collaboration between the two organizations to reduce online piracy, including the development of mechanisms and channels for sharing information, the development of piracy monitoring processes, and increasing the expertise and technical knowledge of local authorities.
Adding to these is an MOU with brand owners and e-commerce platforms Lazada and Shopee that established a notice-and-takedown procedure and a feedback mechanism in order to build stronger coordination to combat online counterfeiting.
The Notorious Markets List identifies prominent and illustrative examples of online and physical markets in which pirated or counterfeit goods and services reportedly are available or that facilitate, turn a blind eye to, or benefit from substantial piracy and counterfeiting.