Copyright and Reproduction Rights

Copyright is the automatic legal protection given to authors or creators of scientific, literary, and artistic works. It is not just one right but a bundle of moral and economic rights.

On the other hand, the reproduction right is one of the economic rights of authors under the IP Code. (RA 8293 as amended, Sec. 177).

Exclusive Right
It is the exclusive right of authors of literary, scientific, and artistic works to authorize publishers or entities to make copies of their articles, books, drawings, photographs, and other works. 

It is described as exclusive because only the author has the right to authorize another person or entity to make copies of his/her works.   

Primary Use
This is the reason why an author must sign a contract first to authorize the publisher to publish his or her book. Once the book is published and sold, the author will receive his or her royalty based on the agreement with the publisher. 

A secondhand book may be sold without giving royalty to the author because the author already received royalty when the book was first sold. This is called primary use.

Secondary Use
In many institutions like schools and businesses, reproducing a portion of a printed material via photocopying and digital copying became an indispensable tool in learning and conducting business. This is called secondary use.

Under the IP Code, the limited reproduction of portions of works is allowed under Fair Use.

However, the reproduction rights remain with the author so no one may reproduce the book on a large scale or worse 100 percent without the author’s permission.

Fair Use Guidelines
In 2013, the IP Code was amended by RA 10372 where the Fair Use clause (Sec. 185) was changed and the book industry was directed to craft their Fair Use Guidelines in Sec. 230. 

Under Fair Use Guidelines crafted by the Book Development Association of the Philippines (BDAP) in 2014, the industry rightsholders consider it fair use for consumers like institutions to avail of secondary use via photocopying and digital copying only 5% of a book. 

If the institution needs more, FILCOLS was authorized by its members to license up to 20% or one chapter of the book. If the institution needs more than 20% then they should buy the book.

To better manage the secondary use market i.e. large-scale photocopying and digital copying, authors and other rightsholders assign their reproduction rights on a non-exclusive basis to FILCOLS. Armed with these authorizations, FILCOLS can then offer easy legal access to these works for a small license fee to institutions that regularly reproduce these on a large scale for internal use.

Collective Management Organization
FILCOLS is a collective management organization (CMO) for the text and image sector. Specifically, we manage the reproduction rights assigned by our members in a joint manner. By looking after the secondary use market, we support the Philippine book publishing industry by providing a supplementary source of remuneration from the license fees we collect.

IFRRO 
A Reproduction Rights Organization (RRO) is a specific type of copyright society that collectively manages the copyright, mainly the reproduction rights of authors, publishers, and other rightsholders in the text and image sector.

Many RROs from different countries, including FILCOLS from the Philippines, form part of an international network called the International Federation of Reproduction Rights Organisations (IFRRO). This helps them represent different authors and publishers from all over the world and helps monitor and enforce their copyright internationally.

However, many RROs have expanded the scope of the rights they represent. For example, some RROs were mandated by visual artists to manage their resale rights. To better describe their new conditions, the term collective management organization was introduced. 

Accreditation of Copyright Societies

Section 183 of the Intellectual Property Code (IP Code) states: 

  • The owners of copyright and related rights or their heirs may designate a society of artists, writers, composers, and other right-holders to collectively manage their economic or moral rights on their behalf. 
  • For the said societies to enforce the rights of their members, they shall first secure the necessary accreditation from the Intellectual Property Office of the Philippines (IPOPHL). 

Although the IP Code still uses the words copyright society, there are proposals to change it to a more international and updated collective management organization.

In 2013, FILCOLS participated in the public consultation and provided suggestions during the crafting of Guidelines on the Accreditation of CMOs following the enactment of RA 10372. FILCOLS was the second CMO to be accredited by the IPOPHL in 2014. The first was the music CMO Filipino Society of Composers, Authors, and Publishers (FILSCAP).

Why should FILCOLS manage copyrights collectively?
Collective management of copyright has been shown to be an effective way to maximize the collection of royalties for authors and publishers while lowering the cost of licensing for both rightsholders and users. 

FILCOLS links authors and users
Because of the large number of works available, it is impractical for users to seek permission from every single author or publisher. Likewise, because there is a large number of users, authors and publishers cannot go to every single user to issue licenses and collect fees. 

Such work is best left to a professional organization like an RRO to make the entire process easier. Collective management provides a low-cost and convenient way to serve the needs of the creators and the users of works. Authors and publishers get the income they deserve and users get the access that they need. 

Educational institutions, businesses, and other organizations need to obtain the proper licenses from rightsholders so they can legally use portions (beyond what is considered fair use) of copyrighted works for internal and institutional use mainly through digital and photocopying. 

Being the representative of a large number of authors and publishers, RROs like FILCOLS are able to issue blanket licenses that cover all the works in its repertoire, both foreign and domestic. 

How can FILCOLS help higher education institutions (HEIs) like State Colleges and Universities (SUCs) and Local Universities and Colleges (LUCs)?
FILCOLS provides easy and legal access to HEIs who reproduce copyrighted works on a large scale for internal use. Getting a license from FILCOLS means the HEI deals with only one entity which is accredited by the government through the IPOPHL. 

Free Tuition Law
FILCOLS supported the passage of the Free Tuition Law (Universal Access to Quality Tertiary Education Act of 2016 or RA 10931). This law provided funds for “the reproduction of materials” [RA 10931, Section 3(g)] in SUCs and LUCs.

During the crafting of the law’s Implementing Rules and Regulations (IRR), FILCOLS team led by chair Dr. Jose “Butch” Y. Dalisay Jr. met with the Commission on Higher Education (CHED)-UNIFAST secretariat to discuss points that will be presented to its Board.

Later, FILCOLS executive director Alvin J. Buenaventura and legal counsel Atty. Javier Flores crafted a position paper that guided the CHED-UNIFAST secretariat to include in its IRR copyright license fees for the reproduction of works under library fees.

This means that the government will provide funds for the large-scale reuse of copyrighted works. The SUCs and LUCs just need to include the copyright license fee for the reproduction of works under library fees. Here is the provision:

  • (gg) Library fees refer to the fees intended for the use of and access to library services in aid of research and instruction. This fee shall not cover fines and penalties incurred by student library users. This also includes license fees to cover large-scale reproduction of copyrighted materials which shall be paid to collective licensing organizations. (Page 8, Implementing Rules and Regulations, RA10931)

Please click this link to download the Free Tuition Law RA 10931.
Please click this link to download the IRR of Free Tuition Law RA 10931.

What is the Berne Convention?
According to the World Intellectual Property Organization (WIPO), the Berne Convention of 1886 deals with the protection of works and the rights of their authors. It provides creators such as authors, musicians, poets, painters, etc. with the means to control how their works are used, by whom, and on what terms. 

It is based on three basic principles and contains a series of provisions determining the minimum protection to be granted, as well as special provisions available to developing countries that want to make use of them.

What are the three basic principles in the Berne Convention?
The three basic principles are the following:

(a) Works originating in one of the Contracting States (that is, works the author of which is a national of such a State or works first published in such a State) must be given the same protection in each of the other Contracting States as the latter grants to the works of its own nationals (principle of “national treatment”). This means that foreign works should be protected in the same way as domestic works.

(b) Protection must not be conditional upon compliance with any formality (principle of “automatic” protection). This means that authors and creators automatically gain copyright protection by simply creating original works. There is no need to register or give notice.

(c) Protection is independent of the existence of protection in the country of origin of the work (principle of “independence” of protection). If, however, a Contracting State provides for a longer term of protection than the minimum prescribed by the Convention, and the work ceases to be protected in the country of origin, protection may be denied once protection in the country of origin ceases. This means that given protection in one country is not dependent in the protection in another country.

(Source: https://www.wipo.int/treaties/en/ip/berne/summary_berne.html)

What does Article 9 of the Berne Convention say?

Article 9

(1) Authors of literary and artistic works protected by this Convention shall have the exclusive right of authorizing the reproduction of these works, in any manner or form.

(2) It shall be a matter for legislation in the countries of the Union to permit the reproduction of such works in certain special cases, provided that such reproduction does not conflict with a normal exploitation of the work and does not unreasonably prejudice the legitimate interests of the author.

(3) Any sound or visual recording shall be considered as a reproduction for the purposes of this Convention.

Why is Article 9(2) included in the IP Code?
More commonly known as the Berne Three-Step Test, Article 9(2) of the Berne Convention was incorporated into the Philippine IP Code as a limitation to copyright limitations and exceptions. This means that exceptions are not absolute but may only be used in special cases and under conditions that will not seriously harm the right holder’s moral and economic rights.

Under Section 184.2. The provisions of this section shall be interpreted in such a way as to allow the work to be used in a manner which does not conflict with the normal exploitation of the work and does not unreasonably prejudice the right holder’s legitimate interests. (IP Code)

The IP Code copied Article 9(2) and placed it after the enumeration of limitations on copyright. This is to emphasize that the fair use is not a free-for-all copying. The limitation like fair use still should not conflict with the normal exploitation of the work, for example buying a book, and not unreasonably prejudice the legitimate interests of the author, which means the moral and economic rights.

If the limitation like fair use affects the livelihood of the author, where his or her book is not bought due to free-for-all copying masked as fair use, then this goes against the author’s legitimate interests.