The American creative sector has expressed alarm over proposed legislative measures that seek to overhaul the Philippines’ Intellectual Property (IP) Code, with an influential lobby group warning that the move could erode the country’s copyright protection.

Washington-based International Intellectual Property Alliance (IIPA) told the Office of the United States Trade Representative (USTR) that the US government should monitor developments in the Philippines concerning efforts to amend the IP Code.

IIPA is the umbrella organization of the American creative sector, representing a total of 3,200 companies producing and distributing materials protected by copyright laws across the globe.

The group’s member associations include the Association of American Publishers (AAP), Entertainment Software Association (ESA), Independent Film & Television Alliance (IFTA), Motion Picture Association (MPA), and Recording Industry Association of America (RIAA).

In a position paper submitted to the USTR last month and seen by Manila Bulletin, IIPA pushed for stronger government-to-government engagement with the Philippines “to ensure their legislative proposals result in adequate and effective copyright protection and enforcement.”

IIPA noted that several bills filed in Congress could “significantly weaken, not strengthen, copyright protections or enforcement.”

These measures, if enacted, could also serve as barriers to trade.

“Unfortunately, there are several bills before Congress that would amend the IP Code and contain several problematic provisions that should be removed or revised,” IIPA said.

The industry group, in particular, seeks the removal of the extended collective licensing (ECL) mechanism in the proposed amendments.

ECL is a system developed for specific cases in markets with well-developed collective rights management systems.

Under this system, collective management organizations (CMOs), or entities that act on behalf of the rights holders they represent, must already represent a substantial number of rights holders in their respective fields.

IIPA argued that the proposed ECL is not suitable for the Philippines due to its underdeveloped collective rights management system.

Based on the list of accredited CMOs by the Intellectual Property Office of the Philippines (IPOPHL), the country only has six CMOs—all of them in the music industry.

“Accordingly, an ECL may be introduced only where there is a proven market failure and where individual licensing is unfeasible, not into a developed and well-functioning market,” said IIPA.

In relation to this, IIPA suggested that the IP Code could include clearer language pertaining to the mandatory accreditation of CMOs with IPOPHL.

“It should be made clear that individual rights holders, engaged in licensing of rights they own or control, shall not be under any obligation to seek an accreditation,” it noted.

The industry group is also calling for the removal of a proposed remuneration, or additional payments, to performers for subsequent communications or broadcasts.

Given that performers and producers already negotiate their fees and rights through contractual and licensing arrangements, this proposal could interfere with freedom of contract.

Moreover, IIPA said that the Philippine government may consider scrapping the open-ended fair use provision in the IP Code or perhaps changing it to a closed-list fair dealing provision.

It pointed out that open-ended exceptions could only lead to “unnecessary uncertainty, litigation, and conflicting decisions,” which can be harmful not only to rights holders but also to users who need certainty regarding which uses are permitted.

Closed-list systems, on the other hand, provide a higher degree of certainty in terms of permitted uses.

Lastly, to align with international standards, IIPA said the country’s term of protection for sound recordings and audiovisual and other works should be extended to at least 70 years, from the current 50 years.

IIPA told the USTR that addressing “unfair trade practices” is an urgent concern for the creative industry, as the inability to fairly compete negatively impacts revenues returning to the US.

“Tackling these unfair trade practices in foreign markets will support US jobs and ensure the copyright industries continue to make significant contributions to US employment,” it said.