Business owners caught using, selling illegal software to be slapped with HDO

MANILA, Philippines - Starting this month, establishment owners caught using or selling illegal computer software may not be allowed to leave the country since they would be slapped with a hold departure order (HDO), according to the Pilipinas Anti-Piracy Team (PAPT). 

In a statement, the PAPT this week said it has launched its 2013 campaign with the planned inspection of computers of commercial establishments, if they are using or selling illegal software.

During the first leg of the program, PAPT would concentrate on business establishments in the southern part of Metro Manila such as in Parañaque, Las Piñas and Muntinlupa, and in Cavite, Laguna, Batangas, Quezon, the Bicol region and the Mindoro provinces.

Violators can now be slapped with an HDO after the Pasay City regional trial court (RTC) recently ruled that those who infringe on intellectual property rights (IPR) face criminal charges and would not be allowed to leave the country.

The Pasay RTC reportedly directed the Bureau of Immigration (BI) and the Department of Foreign Affairs (DFA) not to allow persons who have been criminally charged for copyright infringement to travel outside of the country.

Also, the PAPT said there has been an announcement that the US Homeland Security Investigations has partnered with the Intellectual Property Office of the Philippines (IPOPHL) in identifying IPR violators and taking actions that may include criminal prosecution or administrative sanctions that could affect eligibility for a US visa or even the revocation of an existing US visa should an individual be found guilty.

Those charged with software piracy may not be able to travel to the United States whether for business or pleasure. 

“The hold departure order for IPR violators issued by the regional trial court is a big step in propelling anti-piracy initiatives in the Philippines. Even as criminal cases are still being litigated against suspected software pirates, they run the risk of not being able to travel to popular business and tourism destinations for Filipinos such as Hong Kong, Singapore, Bangkok and beyond to the US and European countries. For Filipino businessmen, this will mean a major drawback not just for their business but for them personally,” said lawyer Cyrus Valenzuela, executive director of the Optical Media Board (OMB).

The possibility of not being able to travel to the US was further confirmed in a speech by US Homeland Security Investigations assistant attaché Mitchell Worley at the recent 2nd Philippine Anti-Piracy and Counterfeiting Summit.

Worley cited President Barack Obama’s commitment in ensuring a level-playing field by not tolerating unfair business practices such as piracy and counterfeiting and keeping software criminals out of the US as software piracy is considered a crime.

“Not being able to travel out of the country, especially to popular business and tourist destinations like Hong Kong, Singapore, Bangkok and beyond to Europe and most of all to the US is a major disappointment for Filipinos. But all they need to do to avoid such a serious consequence, not to mention the disruption to their business operations, is to stick to using and selling legal software. The risks from being caught red-handed are not worth it,” Valenzuela said. 

He added: “The current software piracy rate in the Philippines stands at 70 percent. We cannot allow this to continue, preventing the information and communications technology industry from flourishing, as well as robbing the government of hundreds of millions of pesos through taxes, lost job opportunities for Filipinos, and economic progress in general.” 

Software piracy is a violation of the copyright provisions of the IP Code of the Philippines (Republic Act 8293) and Optical Media Act (RA 9239) and carries with it penalties of up to nine years of imprisonment, not to mention a fine of up to P1.5 million. 

Comprising the PAPT, formed in 2005, are the National Bureau of Investigation, OMB, Philippine National Police and the IPOPHL, which joined the group in 2011.

Its aim is to undertake an integrated and coordinated effort by the government to counteract the negative effects of software piracy on the local IT industry and the economy.