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PHILIPPINES

Since June 1997

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Copyright law with clear exceptions
Republic Act No. 8293, prescribing the intellectual property code and establishing the intellectual property office, providing for its powers and functions, and for other purposes
The Philippines has a clear regime of copyright exceptions that follows fair use, which enables the lawful use of copyrighted work by others without obtaining permission (Republic Act No. 8293). Sections 184-190 list the exceptions, which include the recitation or performance of a work once it has been lawfully made accessible to the public if done privately and free of charge or if made strictly for a charitable or religious institution or society; the making of quotations from a published work if they are compatible with fair use and only to the extent justified for the purpose, including quotations from newspaper articles and periodicals in the form of press summaries; the reproduction or communication to the public by mass media of articles on current political, social, economic, scientific or religious topic, lectures, addresses and other works of the same nature; among others.
Coverage Horizontal

PHILIPPINES

Reported in 2022, last reported in 2024

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Enforcement of copyright online
Lack of adequate enforcement of copyright online
Copyright is not adequately enforced online in the Philippines. Although the country has made progress in intellectual property (IP) protection and enforcement since 2014, rights holders have raised concerns about increasing online piracy, ineffective IP enforcement due to limited capacity and expertise, and slow prosecution and conviction of cases.
Coverage Horizontal

PHILIPPINES

Since July 2002, entry into force in October 2002

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Adoption of the World Intellectual Property Organization (WIPO) Copyright Treaty
WIPO Copyright Treaty
The Philippines has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

PHILIPPINES

Since July 2002, entry into force in October 2002

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Adoption of the World Intellectual Property Organization (WIPO) Performances and Phonogram Treaty
WIPO Performances and Phonograms Treaty
The Philippines has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal

PHILIPPINES

Since October 2003, last amended in October 2016

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Implementing Rules and Regulations of Republic Act No. 9184
Sections 23.5.1.1 and 24.3.1 of the 2016 Implementing Rules and Regulations of Republic Act No. 9184 provide that partnerships, corporations, and joint ventures with at least 60% Filipino ownership are considered eligible bidders for public procurement of goods and services. However, the procurement of infrastructure projects is more restrictive, which can discourage foreign contractors from participating in digital infrastructure, such as cloud services. Foreign contractors (those with less than 75% Filipino ownership) are allowed only when provided for under any treaty or international or executive agreement or if they form a joint venture with local contractors (Subsection 23.4.2). These provisions have been in force since the first Implementing Rules and Regulations of 2003.
Coverage Horizontal

PHILIPPINES

Since January 2003
Since October 2003, as amended in 2009, last amended in October 2016

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Government Procurement Reform Act - Republic Act No. 9184

Implementing Rules and Regulations of Republic Act No. 9184
The Government Procurement Reform Act acts as the enabling framework for preferential procurement by virtue of Art. XII, Section 43. In the interest of availability, efficiency and timely delivery of goods, the procuring entity may give preference to the purchase of domestically produced and manufactured goods, supplies and materials that meet the specified or desired quality. Rule XII of the Implementing Rules and Regulations outlines the implementation and process of preferential procurement, wherein the procurement award should be made to the lowest domestic bid, provided that it is not more than 15% in excess of the lowest foreign bid. The 2003 IRR only provided for a general preference.
Coverage Horizontal

PHILIPPINES

Since October 2003, as amended in 2009, last amended in October 2016

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Implementing Rules and Regulations of Republic Act No. 9184
Section 24.3.2 of the Implementing Rules and Regulations (IRR) of Republic Act No. 9184 specifies that, in cases where consulting services involve regulated professions, the individuals actually performing these services must be Filipino citizens and registered professionals, authorised by the appropriate regulatory body to practice the relevant professions and their associated fields. Although this provision was initially introduced in the 2003 IRR, it previously applied only to partnerships, corporations, and joint ventures. Under the 2009 IRR, however, the provision effectively prohibits foreign consultants from directly providing their professional services in these regulated areas.
Coverage Horizontal

PHILIPPINES

N/A

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Signatory of the World Trade Organization (WTO) Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
The Philippines is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2019.
Coverage Horizontal

PHILIPPINES

Since February 1987

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Maximum foreign equity share
The Constitution of the Republic of the Philippines
Section 11 of Article XVI of the Constitution of the Republic of the Philippines mandates that the ownership and management of mass media must be restricted to Filipino citizens or corporations entirely owned and managed by Filipinos. In 2018, it was reported that the Philippine government revoked the operating licence of Rappler, one of the country’s leading news websites, alleging that the organisation had violated the constitutional provision restricting media ownership to Philippine citizens. As of September 2023, the appeal against this decision remained pending before the Court of Appeals.
Coverage Mass media

PHILIPPINES

Since June 2022
Since March 2000, as amended in December 2021
Since March 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Maximum foreign equity share
Executive Order No. 175 Promulgating the Twelfth Regular Foreign Investment Negative List

Retail Trade Liberalization Act of 2000

Implementing Rules and Regulations of the Retail Trade Liberalization Act of 2000 as amended by Republic Act No. 11595
According to List A of the Twelfth Regular Foreign Investment Negative List and Section 5 of the Retail Trade Liberalisation Act, as amended by Republic Act No. 11595, foreign investment in small retail enterprises is restricted to Philippine nationals. Retail trade businesses with capital below USD 500,000 are exclusively reserved for Filipino citizens. In addition, Section 3 of Rule III of the Implementing Rules and Regulations of the Retail Trade Liberalisation Act explicitly stipulates that this limitation extends to foreign retailers operating solely through online platforms.
Coverage E-commerce sector
Sources

PHILIPPINES

Since June 1991, last amended in March 2022
Since June 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Maximum foreign equity share
Foreign Investment Act of 1991 - Republic Act No. 7042

Executive Order No. 175 Promulgating the Twelfth Regular Foreign Investment Negative List
The Foreign Investment Act requires the publication of the Foreign Investment Negative List (FINL) every two years, which outlines sectors in which foreign investment is restricted. According to List B of the 2022 FINL, up to 40% foreign equity is allowed in micro and small domestic market enterprises with paid-in equity capital of less than the equivalent of USD 200,000 and micro and small domestic market enterprises that involve advanced technology or are endorsed as startup or startup enablers by state agencies; or those whose majority of direct employees are Filipinos provided that their Filipino employees should not be less than 15, and with a paid-in equity capital of less than the equivalent of USD 100,000.
Coverage Horizontal
Sources

PHILIPPINES

Since June 1991, last amended in March 2022
Since June 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Maximum foreign equity share
Foreign Investment Act of 1991 - Republic Act No. 7042

Executive Order No. 175 Promulgating the Twelfth Regular Foreign Investment Negative List
The Foreign Investment Act requires the publication of the Foreign Investment Negative List (FINL) every two years, which outlines sectors in which foreign investment is restricted. According to List A of the 2022 FINL, advertising is limited to 30% foreign equity.
Coverage Advertising sector
Sources

PHILIPPINES

Since February 2019

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Nationality/residency requirement for directors or managers
Revised Corporation Code of the Philipines - Republic Act No. 11232
Section 4 of the Revised Corporation Code of the Philippines (RA 11232) mandates a residency requirement for select corporate officers, namely the treasurer and the secretary.
Coverage Horizontal

PHILIPPINES

Since February 2019

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Commercial presence requirement for digital services providers
Revised Corporation Code of the Philipines - Republic Act No. 11232
Section 142 of the Corporations Act establishes that a foreign corporation applying for a license to transact business in the Philippines shall submit to the Commission the address, including the street number, of the principal office of the corporation in the country or State of incorporation; the name and address of its resident agent authorised to accept summons and process in all legal proceedings and all notices affecting the corporation, pending the establishment of a local office; and the place in the Philippines where the corporation intends to operate.
Coverage Horizontal

PHILIPPINES

Since June 1997

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Practical or legal restrictions related to the application process for patents
Republic Act No. 8293, prescribing the intellectual property code and establishing the intellectual property office, providing for its powers and functions, and for other purposes
According to Section 33 of the Republic Act No. 8293, an applicant who is not a resident of the Philippines must appoint and maintain a resident agent or representative in the Philippines upon whom notice or process for judicial or administrative procedure relating to the application for patent or the patent may be served.
Coverage Horizontal

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