The Philippines expects to extend its 12-year streak of remaining off the United States’ (US) list of global intellectual property violators, citing a “whole-of-government” crackdown on piracy and improved border controls.

In a formal submission to the Office of the US Trade Representative (USTR) for the 2026 Special 301 Review, the Intellectual Property Office of the Philippines (IPOPHL) argued that its exclusion from the watch list remains warranted.

Nathaniel Arevalo, acting director general of IPOPHL, said in a letter to the USTR that the government is currently pursuing further institutional and legal shifts to ensure the sustainability of IP enforcement.

“Through a coordinated, whole-of-government and whole-of-society approach, the country is enhancing enforcement capabilities across both physical and digital marketplaces,” said Arevalo in a letter seen by Manila Bulletin.

“Substantial progress has been achieved, and further institutional, legal, and operational reforms are being pursued to improve the effectiveness and sustainability of IP rights enforcement,” he added.

The country was a fixture on the US list from 1994 until 2014, when it was finally delisted following a series of legislative and enforcement reforms.

Implemented by the USTR, the Special 301 Report is an annual assessment of the global state of IP rights protection and enforcement that identifies countries found to deny adequate and effective protection of IP rights.

In comments submitted to the USTR, IPOPHL sought to address concerns raised by key stakeholders during the review process.

For one, the Washington-based ACT, The App Association, recommended including the Philippines on the watch list, largely due to concerns that the Internet Transactions Act could create barriers for American small and medium-sized enterprises (SMEs).

In its response, IPOPHL said the claim that the law might inhibit fair market access for SMEs is “unsubstantiated,” noting that it applies uniformly to all platforms, whether domestic or foreign, to ensure nondiscriminatory treatment and a transparent regulatory framework.

“Consumer-to-consumer transactions are intentionally excluded, showing that the legislature avoided sweeping or excessive coverage. Likewise, the provisions of the law on accessible redress mechanisms, secure payment channels, and data protection standards benefit all legitimate businesses by building consumer trust,” it said.

Another Washington-based industry group, the International Anti-Counterfeiting Coalition Inc. (IACC), questioned the Philippines’ purportedly lax border controls, which it said are contributing to the widespread availability of counterfeit goods, alongside insufficient enforcement and criminal prosecutions.

Contrary to IACC’s claim, IPOPHL said the Bureau of Customs (BOC) has been enhancing its risk management systems, information-sharing, and post-seizure procedures to improve the detection, custody, and disposition of counterfeit goods.

“The Philippines continues to build the capacity of customs officers for a more proactive enforcement, while ensuring that actions are grounded in due process and supported by verifiable intelligence,” it said.

As Manila Bulletin earlier reported, the government seized ₱29.54 billion worth of counterfeit products in 2025, down 27 percent from the record-high ₱40.99 billion in 2024.

Despite the decline, the government conducted 4,422 operations last year, compared with 1,650 in the previous year.

The Department of Justice (DOJ) conducted 563 IP rights investigations last year, with 21 resulting in convictions and 16 amicably settled.

Amid persistent challenges in the digital market, IPOPHL has taken the lead in facilitating the e-commerce memorandum of understanding (MOU), a voluntary notice-and-takedown system to combat IP infringement online without resorting to litigation.

As of Feb. 10, there are now 110 signatories to the MOU, including four online platforms, 11 industry groups, and 98 brand owners.

“Through continuous dialogue, capacity-building sessions, and technical discussions on streamlining takedown protocols, platforms, and rights holders have gradually aligned their efforts—leading to more efficient enforcement mechanisms and a higher rate of proactive intervention,” the IPOPHL said.

With these efforts, IPOPHL said the Philippines demonstrates not only adherence to international standards but also a clear commitment to ensuring that IP protection and enforcement keep pace with evolving technologies and market realities.

“In light of the concrete progress achieved, the reforms underway, and the sustained national commitment to further strengthening IPR protection and enforcement, the Philippines respectfully submits that its continued delisting from the Special 301 Watch List remains fully warranted,” it said.