Five leading internet service providers (ISPs) in the country have signed a Memorandum of Understanding (MOU) with the Intellectual Property Office of the Philippines (IPOPHL) to establish a site-blocking mechanism against pirate sites.

The ISPS that signed the MOU include Globe Telecom, PLDT Group, Smart Communications, Dito Telecommunity, and Sky Cable Corporation.

A first in Asia, the MOU is a significant step forward against content piracy pending proposed amendments to the 26-year-old the Intellectual Property Code of the Philippines which will institutionalize stronger measures.

The MOU “is the first in Asia and second in the world,” said Neil Gane of the Motion Pictures Association.

Germany had pioneered a similar initiative, where the site-blocking process centers around an independent entity known as the Clearinghouse for Copyright on the Internet (CUII) founded by ISPs and rights holders. Notably, Germany's model operates without the direct involvement of any governmental agency.

As it underscored the benefits the internet has brought to Filipinos, the MOU highlights the detrimental effects of online piracy, which not only harms legitimate stakeholders but also exposes users to potential malware threats and phishing attacks.

The MOU's primary objective is to establish a voluntary site-blocking practice against the unauthorized distribution and sale of pirated content over the internet and set an example for other stakeholders who are not yet signatories to the MOU.

It also outlines the general principles and procedures for site blocking, emphasizing collaboration between ISPs and IPOPHL, and ensuring compliance with the Data Privacy Act of 2012.

Site-blocking is among proposed amendments to the Intellectual Property Code, with measures pending in Congress.

As it welcomes the MOU, Globe is hoping for a more robust, institutionalized mechanism for site-blocking under the law, as this would penalize offenders and make site-blocking a matter of course for ISPs.

Globe supports the swift approval of two bills currently under Senate review which aim to empower IPOPHL to initiate site-blocking measures against copyright-infringing sites.

The urgency of these efforts is underscored by a recent study by Media Partners Asia, which projected a potential revenue loss of $1 billion for the Philippines by 2027 if online video piracy continues unchecked.

Surveys by YouGov also indicate that enforcing site-blocking could significantly benefit the Philippines' P1.6-trillion creative industry.

With this MOU, Globe, IPOPHL, and other ISPs are taking a decisive step towards a safer, more equitable online environment, ensuring that the creative industry thrives and that Filipinos can enjoy legitimate content without compromise.