Proposed bill to hold e-commerce sites, malls liable for counterfeit items

MANILA, Philippines — An interagency group for intellectual property rights (IPR) protection and enforcement is pushing for legislation which would hold e-commerce sites and malls liable for the sale of counterfeit items on their platforms.

In a press conference ahead of the National Committee on IPR’s high-level meeting yesterday, Trade Secretary Ramon Lopez who chairs the interagency said the group would advocate to have in place legislation where in mall owners and e-commerce sites would have third party liability for counterfeit items being sold in their stores.

“We will push for legislation that they will also be liable when there are sellers selling counterfeit so that they can help us self-police their ranks and sellers,” he said.

NCIPR which formulates and implements plans and policies, as well as strengthens the protection and enforcement of IPR in the country, is composed of the DTI, Intellectual Property Office of the Philippines (IPOPHL), Department of Justice, Bureau of Customs, Food and Drug Administration, National Bureau of Investigation, Philippine National Police, Optical Media Board, National Book Development Board, Office of the Special Envoy on Transnational Crime, Department of the Interior and Local Government, and National Telecommunications Commission.

IPOPHL director general Josephine Santiago said the agency submitted a draft bill to amend the IP Code which includes making even e-commerce sites and mall owners liable for counterfeit goods like shoes and bags of their sellers or tenants.

“This will extend to trademarks, meaning those articles like footwear, bags you see in the malls, that will be hit by the bill,” she said.   

As for the online selling platforms, she said the draft bill proposes the shutdown of e-commerce sites where counterfeit items are being sold.

She said the draft bill would also cover payment gateways.

Santiago said payment gateways would have to institute measures to stop payment for counterfeit items.

Lopez reminded consumers to be careful when making purchases.

During the high-level meeting, the NCIPR will finalize an action plan to strengthen IPR protection and enforcement in the country.

He said the NCIPR would also address issues on use of unlicensed software by government agencies.

According to the US Trade Representative’s 2019 Special 301 Report released earlier this year, further work is needed in addressing the Philippine government’s use of unlicensed software.