September 11th, 2022
House Ways and Means Chair Joey Sarte Salceda (Albay, 2nd district) bared a comprehensive strategy for knowledge industries under the administration of President Ferdinand Marcos Jr., during his keynote speech today at the Asia Anti-Piracy Summit held by the Coalition Against Piracy (CAP) today.
Salceda cited that President Marcos made intellectual property and innovation a priority in his maiden State of the Nation Address.
“The creative industry likewise faces many challenges, including workplace conditions, working hours, intellectual property rights, and the welfare of our beloved freelancers who are left vulnerable during the height of the pandemic. We require an institutionalized creative industry that will advance the interest of its stakeholders. Sila na nagbibigay ng kaluluwa at pagkakilala sa ating pagka-Pilipino, protektahan natin sila.” Marcos said in his SONA, as cited by Salceda in his keynote address.
“You will not create if you cannot own. You do not own what you cannot protect,” Salceda said in his headline speech, summarizing the need for intellectual property protection to remove economic barriers and harms to consumers of piracy due to counterfeiting and piracy.
Salceda also proposed a comprehensive strategy for the development of what he called the “knowledge industries” during the speech, listened to by representatives from Korea, the United States, Singapore, and other countries.
“We can be a world power in intellectual property. We are one of the largest exporters of creative goods among developing economies,” Salceda said.
Comprehensive strategy for creatives under PBBM
Salceda listed the following points under his proposed knowledge industries strategy for President Marcos.
“One, Capacity-building through investment (Public, Private, Public-Private). Incentives for research and development (CREATE Law), public investments consistent with Pagtanaw 2050 and Science for Change, inclusion of creatives industries, sciences, and technology in Build Better More (HR 6, Salceda et al), lifting of foreign equity restrictions in knowledge-heavy sectors (FIA amendments with liberalization of practice of professions) and tech-heavy sectors (PSA amendments), encouraging more PPPs on creatives and knowledge sectors under PPP Act amendments (HB 49).”
“Two, Cross-pollination. Allow more foreign scientists and knowledge creators into the country. Encourage more knowledge-sharing and knowledge-transfer through tax and non-tax incentives (Commercialization of intellectual property, research and development under Tier 3 of SIPP), looser restrictions on training, Balik Scientist program (RA 11035)”
“Three, fair taxation. VAT on foreign digital service providers for parity with domestic service providers (IWantTV, Vivamax, etc). Making our double-taxation agreement work with the US through accession with OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters (CMAT/MCMAAT), so Filipino content creators are taxed at our PIT rates (around 20-25%) instead of US WHT of 30% for foreign non-residents”
“Four, market creation. Market-creation. Government procurement of more Filipino creative works, promotion of Filipino culture abroad, cultural tourism, etc., creation of Special Committee on Creative Industries and Performing Arts to continuously promote the creatives sector”
“Five, Legal protection. Creative Industries Development Act (RA 11904) protecting rights and welfare of creative sector workers, Freelancer Protection Act (HB 2821) protecting rights of freelance workers, IP Law amendments (HB 799)”
Salceda also discussed House Bill No. 799, or the New Intellectual Property Code of the Philippines, which he says will “make our intellectual property laws more attuned to the digital world.”
Features of the bill include higher fines, the power to block websites featuring pirated content, inclusion of illegally streamed digital content as piracy, and expansion of legal capacity to enforce intellectual property laws.
“Art will not prevail if our artists are starving. Sciences and technology will not develop if there is no commercial value to innovation. If we will not protect our Filipino creatives workers from piracy and counterfeiting, we will lose out. Create. Own. Protect. That is the core of the strategy.”