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Wednesday, December 18, 2024

Blocking piracy, saving an industry, protecting consumers

“The site blocking bill is also about shielding Filipino consumers from the hidden dangers of online piracy.”

As advocates for consumer protection, we at CitizenWatch Philippines are deeply concerned that rising online piracy is not only stripping our creative industries of their livelihoods but also putting millions of consumers interacting on the internet at risk.

Piracy is far from harmless—it causes severe economic damage, threatens jobs, and exposes users to cyber risks. The Asia Video Industry Association’s survey found that 70% of Filipinos access pirated content, a number that continues to rise. The result? A once-thriving industry now faces crippling losses and fights for survival.

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Take the case of the local film sector. In 2019, MMFF recorded nearly a billion pesos in earnings. But by 2020, as piracy surged during the pandemic, revenues plummeted to just 30 million pesos and has not recovered.

As actor and former chairman of the Optical Media Board Edu Manzano recalled, the golden era of producing over 250 films annually has dwindled to fewer than 30. This has led to widespread job losses, with some 9,000 industry professionals—from directors to lighting crews—falling into dire straits.

The economic impact of piracy is not just about money. Honorary Professor Paul Watters from Macquarie University highlightsed that there is a dark side to piracy that goes beyond the entertainment sector.

Consumers who access pirated content are exposing themselves to significant cybersecurity risks. Research shows that the likelihood of encountering malware on these piracy sites is 33 times higher than on legal platforms. For Filipino users with only superficial digital literacy, this is a crisis waiting to happen as cybercriminals will surely target them for identity theft, financial fraud, and other costly consequences.

Other countries have embraced site blocking as a vital tool in combating piracy. Daniel Lye, Content Protection Counsel of the Motion Picture Association stated in his presentation that It has been proven effective in more than 50 nations, where site blocking laws are implemented.

A good example is India’s implemented site-blocking measures that resulted in a significant jump of 5% to 8% in visits to legitimate streaming platforms. A similar trend was observed in Brazil and Indonesia where site blocking shifted consumers towards legal alternatives while starving pirates of their illegal revenue streams.

The Intellectual Property Office of the Philippines (IPOPHL) has already taken steps, such as the voluntary administrative site blocking rules. In close coordination with internet service providers and telcos. They’ve blocked high-traffic piracy platforms like YTS, which racked up over 50 million visits a year. Recent actions have also blocked other notorious sites like Sflix and MyFlixer, which were siphoning off millions in potential revenues from legitimate content creators. These have had an impact, but without a comprehensive, legislative framework, the process remains slow and inefficient.

Passing the Site Blocking Bill would streamline this process, allowing rights holders to obtain blocking orders swiftly and at scale. This is critical, especially when it comes to newly released content that is most vulnerable to piracy. Films, live sports events, and other real-time broadcasts lose their value rapidly if pirated copies flood the internet shortly after release. An institutionalized site-blocking mechanism would empower authorities to act quickly and decisively.

Public education and awareness are equally important. As Professor Watters suggests, we need trusted voices—celebrities, educators, and influencers—to spread the message that piracy is not just illegal, but dangerous. Users might think they’re saving money by accessing free content, but the consequential costs are far higher. By downloading from illegal sources, they risk financial loss, data breaches, and even identity theft.

The passage of the Site Blocking Bill is not just about safeguarding rights holders’ incomes; it’s about protecting jobs, and ensuring a sustainable future for the Philippine creative industry. It’s about defending the livelihoods of thousands of workers who bring joy, stories, and entertainment to our screens. And it’s about shielding Filipino consumers from the hidden dangers of online piracy.

As it is us consumers who are the prime targets of cybercrime tactics embedded in piracy websites, we join the IPOPHL and the stakeholders of the creative industry in calling for the immediate passage of the Site Blocking Bill.

We need the Site Blocking Bill to safeguard both our creative industry and all of us consumers of online content.

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