Philippines Faces $781 Million Revenue Loss Due to Online Piracy, IPOPHL Reports

The Intellectual Property Office of the Philippines (IPOPHL) recently disclosed that online piracy led to a staggering $781 million revenue loss in 2022, with projections suggesting a potential rise to $1 billion by 2027 if unaddressed. This revelation came during a Senate Trade, Commerce, and Entrepreneurship Committee hearing, focusing on the detrimental impacts of piracy on the national economy and the entertainment industry.

IPOPHL Director General Atty. Rowel Barba, citing a study by Media Partners Asia, highlighted the extensive reach of video piracy in the Philippines, noting that about 20 million Filipinos accessed content illegally last year. This widespread infringement not only results in significant financial losses but also jeopardizes future tax revenues which are yet to be fully quantified.

The hearing also addressed the technological aspects of piracy. Ariel Tubayan, Vice President for Legal Policy at Globe Telecom, stressed that online piracy undermines the government’s ability to collect taxes from legitimate entertainment consumption. Meanwhile, GMA Network’s legal counsel, Allan Rafael, pointed out the increasing sophistication of pirates who now operate pay-per-view sites similar to legitimate services like Netflix, often involving risky transactions that could expose users to malware.

These discussions underscored the urgent need for effective legislation to combat online piracy. The Senate is considering several bills, spearheaded by Senate President Pro Tempore Loren Legarda and Senators Jinggoy Estrada and Bong Revilla Jr., which aim to empower IPOPHL with the authority to block access to piracy sites and take preventive actions to protect copyright holders.

Senator Mark Villar, who chaired the hearing, emphasized the critical nature of these measures for the protection of the Philippine creative industry. “Kung hindi natin ipapasa itong batas, kawawa ‘yung mga stakeholders sa ating creative industry,” Villar stated, highlighting the extensive financial and cultural damage inflicted by piracy.

The proposed legislation intends not only to safeguard local content creators but also to ensure that revenues from the creative industries benefit the local economy rather than leaking overseas. As the Senate moves to refine these measures, there is a strong emphasis on the need for robust legal frameworks to curtail the pervasive issue of online piracy, thereby protecting both creators and the economic interests of the Philippines.