U.S. takes tougher stance on IPR

U.S. Trade Representative Robert Zoellick has put the Philippines back on a priority watch list for IPR violations

In this story: Copyright enforcement 'is weak' U.S. trade group claims heavy losses on software RELATED SITES

By CNN's Amabelle Layug

MANILA, Philippines (CNN) -- The United States has placed the Philippines back on the list of the world's worst violators of intellectual property rights.

This follows what it says is Manila's failure to stop the sale and use of fake computer software and audio and video products.

US Trade Representative Robert Zoellick said the US has decided to include the Philippines again in the priority list of International Property Rights violators effective April 30, 2001

Copyright enforcement 'is weak'

"The Philippines copyright enforcement is weak and and we are concerned it has the potential of becoming a center of pirate optical media production in Asia given the doubling in the number of production lines for compact discs (CDs) and other optical media during the past year,," Zoellick said in a statement.

Three years ago, the Philippines was upgraded by the US from the so-called priority Special 301 list of international violators to the ordinary watchlist, after enacting a law toughening up the IPR Code to eliminate piracy.

But losses claimed by the International Intellectual Property Alliance (IIPA) due to IPR violations by the Philippines prompted the US government to put the Philippines back on the infamous list.

U.S. trade group claims heavy losses on software

The IIPA is a federation of US trade groups. It claimed that US companies lost about $51 million in 1999 due to the sale and use of fake software in the Philippines and another $140 million from copyright piracy.

Philippine Trade and Industry Secretary Manuel Roxas lamented the decision, saying the US government failed to recognize the country's enforcement efforts.

"The US decision was most unfair considering that the Philippines has been making major achievements in the protection and enforcement of IPR," Roxas said.

"The decision is also an uncalled-for indictment of the new administration."

Roxas said the government had tried to convince Zoellick not to place the Philippines back on the priority watchlist and instead leave it on the ordinary watchlist.

"Aside from the fact the Philippines is vigorously pursuing the implementation of IPR laws, the sanction the US may impose as authorized on their Section 301 (trade issues in general ) or Special 301 (IPR issues) has been de facto ruled illegal by the World Trade Organization (WTO)," Roxas said.

US Trade Representative

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