Sociological Perspectives on Media Piracy in the Philippines and Vietnam

Vivencio O. Ballano

Sociological Perspectives on Media Piracy in the Philippines and Vietnam

ISBN 978-981-287-920-2 ISBN 978-981-287-922-6 (eBook)DOI 10.1007/978-981-287-922-6

Library of Congress Control Number: 2015953438

Springer Singapore Heidelberg New York Dordrecht London© Springer Science+Business Media Singapore 2016This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed.The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made.

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Vivencio O. BallanoSt. Paul UniversityQuezon City, Philippines

Polytechnic University of the Philippines (PUP)Santa Mesa, Kalakhang Maynila, Philippines

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Acknowledgments

This book on media piracy in the Philippines and Vietnam is a product of a long and painstaking fieldwork, sociological research, and writing. This would not have been possible without the generous help from several people and organizations.

The research data in the Philippines which focused on optical media piracy in Quiapo Barter Trade Center Complex in the city of Manila and its affiliate networks in Metro Manila and nearby provinces would not be a reality without the generous assistance and expertise of several people who assisted the author in his entire field-work. The author is thankful for the research grant of the Japan and Toyota Foundations which financed his postdoctoral fellowship under the Southeast Asian Studies Regional Exchange Program (SEASREP) in 2012. This grant enabled him to extend the scope of his dissertation research on media piracy to Vietnam. The author is particularly grateful to the SEASREP Executive Director, Dr. Maria Serena Diokno, and Program Officer, Ms. Imelda Adante, for facilitating the approval of his postdoctoral research grant application.

With regard to his fieldwork in the Philippines, the author is greatly indebted to a community organizer (name withheld for security reason) of a local nongovern-mental organization (NGO) in Quiapo when he started his data collection in 2010. He assisted the author in his interviews with some key media piracy traders and Muslim leaders in the Quiapo Barter Trade Center Complex on the optical disc piracy trade operations. Without some of his inside knowledge of the trade—owing to his close association with some piracy producers and distributors in the Quiapo Muslim enclave—and guidance during the entire fieldwork in the area, the author’s sociological analysis on the persistence of media piracy in the country would not have gone beyond mass media reports.

The author is also indebted to two former Optical Media Board (OMB) Chairmen and OMB key officers who graciously accommodated his interviews and shared their experience and personal knowledge on the optical disc piracy operations in the Philippines. The author expressed his heartfelt thanks to his key informants, Muslim leaders, and law enforcers for enriching his sociological analysis on the media piracy problem in the country.

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His fieldwork in Vietnam was made possible by the generous help of his Filipino and Vietnamese friends. In particular, the author is greatly thankful to Sr. Azucena Nate, SPC, for introducing him to a Vietnamese contact (whom he cannot identify for security reason) who, in turn, introduced him through electronic media to his key informants in Ho Chi Minh City. The author is highly indebted to his interpreter and tour guide (name withheld for security reason) during his fieldwork in Ho Chi Minh City. He thanked his friends and key informants in Vietnam who shared their personal knowledge on media piracy and protection racket in the city.

Finally, the author is grateful to Dr. Ricardo Abad, his professor and dissertation adviser, and to all his professors and friends in the Sociology and Anthropology Department of Ateneo de Manila University for providing him the necessary socio-logical training and academic preparation to undertake this study. He is also grateful to Springer Science+Business Media Singapore and all the reviewers, editors, and editorial staff, especially Vishal Daryanomel, for making this book a reality. Lastly, he would like to thank his wife Emily and his children Joanne Faye and Johann Karl for their loving support and inspiration.

Acknowledgments

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Vivencio O. Ballano

Sociological Perspectives on Media Piracy in the Philippines and Vietnam

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Contents

1 Introduction ............................................................................................... 1 1.1 Background of the Media Piracy Problem ......................................... 1 1.2 Media Piracy in the Philippines and Vietnam .................................... 3 1.2.1 Optical Disc and Digital Piracy ............................................. 4 1.2.2 Government Response ........................................................... 6 1.3 Understanding Media Piracy .............................................................. 9 1.4 Analyzing Media Piracy in Contemporary Global Society ............... 10 1.4.1 The Current Antipiracy Campaign ......................................... 11 1.4.2 “Piracy” as a Social and Ideological Construction ................ 12 1.4.3 Global Forces Sustaining Media Piracy ................................. 14 1.4.4 The Development Communication Approach

to Media Piracy ...................................................................... 17 1.5 The Book’s Sociological Approach ................................................... 20 1.6 Objectives of the Book ....................................................................... 21 1.7 Definition of Terms ............................................................................ 22 1.8 Theoretical Framework ...................................................................... 25 1.9 Methodology ...................................................................................... 27 1.9.1 The Roadmap of the Book ..................................................... 28

References ................................................................................................... 31

2 U.S. Global Hegemony in Intellectual Property and the Politics of Piracy and Resistance................................................ 33

2.1 Understanding Power and Hegemony ................................................ 33 2.2 U.S. Hegemony in Intellectual Property Trade .................................. 35 2.3 Law as a Maker of Hegemony ........................................................... 37 2.3.1 The Role of NGOs and Top U.S. IP Companies .................... 39 2.3.2 Legal Tools for U.S. IP Hegemony ........................................ 40 2.3.3 The Role of Multilateral and Regional Institutions ............... 42 2.3.4 Free Trade Agreements (FTAs) and IPR Protection .............. 43 2.4 Social Resistance and U.S. IP Hegemony .......................................... 45 2.4.1 Law as a Maker of Resistance ................................................ 46

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2.4.2 Piracy as Passive Resistance: The “Weapons of the Weak” .. 48 2.4.3 Overt or Active Resistant Acts and Strategies ....................... 50 2.4.4 Covert or Passive Resistant Acts and Strategies .................... 52 2.5 Asia Pacific: A Great Promise and Scourge for U.S. IP Hegemony .. 56 2.5.1 The Case of China and ASEAN ............................................. 58 2.5.2 Legal Tools to Combat Media Piracy in Asia Pacific ............ 60 2.5.3 Anti-online Piracy Regulations .............................................. 61 2.5.4 Online Media Piracy in ASEAN Countries ........................... 62 2.6 China and ASEAN as a Scourge for American IP Hegemony .......... 64 2.7 China: The Tie That Binds the Philippines

and Vietnam to Piracy ........................................................................ 67 2.8 Guangdong as Mediating Network for the Philippines

and Vietnam ....................................................................................... 69 2.9 Summary ............................................................................................ 70

References ................................................................................................... 71

3 The Government’s Attitude Toward the Informal Sector and Piracy................................................................ 75

3.1 The Prevalence of the Informal Sector and Formalization ................ 75 3.2 Understanding the Nature of the Informal Sector .............................. 78 3.2.1 Measuring the Informal Sector .............................................. 79 3.2.2 The Context: Prevalence of the Informal Sector in SEA ....... 80 3.2.3 The Informal Sector and Its Share in the GDP ...................... 82 3.3 Informal Employment in SEA ........................................................... 83 3.3.1 The Participation of Migrants in the Optical

Media Piracy Trade ................................................................ 85 3.4 The Government’s Attitude Toward the Informal Sector ................... 87 3.5 The Philippines’ and Vietnam’s Attitudes Toward Informality ......... 89 3.5.1 The Philippine Government ................................................... 90 3.5.2 The Vietnamese Government ................................................. 93 3.6 Vietnam and the Philippines on Legality and Informality ................. 98 3.7 Employment in the Piracy Trade as Informal and Illegal .................. 100 3.8 Formality and Illegality in the Optical Disc Piracy Trade ................. 101 3.8.1 Full Formality in Big CD–DVD Retail Outlets ..................... 103 3.8.2 Partial Formality or Informality in Registered

CD–DVD Shops ..................................................................... 105 3.8.3 Full Informality in Mobile or Sidewalk Vending ................... 107 3.9 Piracy as a Source of Informal Employment ..................................... 108 3.9.1 Informal Employment Structure

in the Optical Disc Piracy Trade ............................................ 109 3.9.2 Summary ................................................................................ 112

References ................................................................................................... 113

Contents

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4 Obstacles in Formalizing the Optical Media Trade ............................... 117 4.1 Understanding Formalization of Business ......................................... 117 4.1.1 Formalization and the Law .................................................... 118 4.1.2 The Overall Regulatory Environment

and Formalization .................................................................. 119 4.2 Legal and Judicial Obstacles of Formalization .................................. 121 4.2.1 Deficient Copyright Laws ...................................................... 121 4.2.2 Weak Judicial System on Intellectual Property...................... 122 4.2.3 Problems in Law Enforcement ............................................... 123 4.3 Bureaucratic Obstacles ....................................................................... 126 4.3.1 Red Tape ................................................................................ 126 4.3.2 Complex and Time-Consuming Business Requirements ....... 128 4.4 Opening an Optical Media Business in the Philippines ..................... 130 4.5 Starting a New Optical Media Business in Vietnam .......................... 132 4.5.1 Opening an Optical Disc Shop in Vietnam ............................ 133 4.6 Regulation and Formalization of Technologies for Media Piracy ..... 134 4.6.1 Regulating the Internet Against Piracy .................................. 135 4.6.2 Internet Regulation in the Philippines and Vietnam .............. 136 4.7 Harmonizing ICT and Copyright Business Interests ......................... 137 4.8 Summary ............................................................................................ 138

References ................................................................................................... 139

5 Social and Technological Forces Supporting Piracy .............................. 141 5.1 The General Profile of the Piracy Traders.......................................... 141 5.1.1 The Producers–Suppliers ....................................................... 142 5.1.2 The Sellers ............................................................................. 143 5.2 The Piracy Traders in the Philippines ................................................ 144 5.3 The Piracy Traders in Vietnam .......................................................... 146 5.4 Factors Fueling the Piracy Trade in the Philippines .......................... 148 5.4.1 Push Factors of Optical Disc Piracy ...................................... 148 5.5 Informal Trading and Overcoming Discrimination ........................... 157 5.6 Factors Facilitating the Piracy Trade in Vietnam ............................... 158 5.6.1 The Informal Sector in Vietnam ............................................ 158 5.7 Technological Networks for Piracy .................................................... 162 5.7.1 Stages in Optical Disc Piracy ................................................. 163 5.7.2 Two Major Technologies for the Piracy Trade ....................... 169 5.8 Social Networks Supporting the Piracy Trade ................................... 171 5.8.1 Kinship Network in Piracy ..................................................... 171 5.8.2 Ethnic Network in Piracy ....................................................... 178 5.8.3 Religious Network in Piracy .................................................. 184 5.9 Summary ............................................................................................ 186

References ................................................................................................... 187

Contents

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6 Corruption and the Nonenforcement of the Optical Media Law ......... 191 6.1 Law Enforcement and Corruption in Sociology ................................ 191 6.2 Understanding the Nonenforcement of the Optical Media Law ........ 193 6.3 Corruption and Media Piracy in SEA ................................................ 197 6.4 The Nonenforcement of the Optical Media Law ............................... 198 6.5 Corruption and Illegal Business Protection System ........................... 199 6.5.1 Vietnam .................................................................................. 200 6.5.2 Philippines.............................................................................. 202 6.6 Appropriating the Protection Money in Piracy .................................. 202 6.7 Nonenforcement and Corruption Patterns

in the Philippines and Vietnam .......................................................... 203 6.7.1 Corruption in Production Piracy ............................................ 204 6.7.2 Corruption in Airports ............................................................ 208 6.7.3 Corruption in Retail Piracy .................................................... 209 6.7.4 Corruption in Philippine Malls .............................................. 214 6.7.5 Corruption in Government Antipiracy Agency ...................... 215 6.7.6 Corruption in Courts .............................................................. 217 6.8 Nonenforcement and Raids Against Piracy ....................................... 218 6.8.1 The “Announced” Raid .......................................................... 220 6.8.2 The Unannounced Raid: The “Hulidup” ................................ 221 6.8.3 The “Recycling” Raid ............................................................ 223 6.8.4 The “Pressured” Raid ............................................................. 223 6.9 Summary ............................................................................................ 224

References ................................................................................................... 225

7 Tracing Media Piracy: Current and Future Trends .............................. 227 7.1 The Evolving Nature of Media Piracy and Globalization .................. 227 7.2 Trends in Media Piracy Follow the Trends in Technology ................ 229 7.2.1 Analog Technology and China in the 1980s .......................... 230 7.2.2 The VCR and the Rise of Analog Media Piracy .................... 231 7.2.3 Shift to Digital Technology in the 1990s ............................... 233 7.2.4 Digital Technology and Digital Online Piracy ....................... 234 7.2.5 Peer-to-Peer Sharing Media Piracy ........................................ 235 7.3 Future Trends ..................................................................................... 241 7.4 Digital Spying and Hacking ............................................................... 242 7.5 Quantum Computing and Machine-Mediated Piracy?....................... 244 7.6 Regulating the Internet and ICT ........................................................ 245 7.7 The Role of China in Piracy ............................................................... 247 7.8 China’s Future Involvement in Piracy ................................................ 249 7.9 Summary ............................................................................................ 252

References ................................................................................................... 253

Erratum ........................................................................................................... E1

Index ................................................................................................................. 255

Contents

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Abbreviations

AmCham American Chamber of Commerce VietnamANT Actor–network theoryAPEC Asia-Pacific Economic CooperationASEAN Association of Southeast Asian NationsBEBA Bureau of Economics and Business AffairsCD Compact DiscDVD Digital Versatile DiscEDCA Enhanced Defense Cooperation AgreementEU European UnionFTA Free Trade AgreementGATT General Agreement on Tariffs and TradeGSP Generalized Special PreferencesHCMC Ho Chi Minh CityIFC International Financial CorporationIIPA International Intellectual Property AllianceILO International Labor OrganizationIMF International Monetary BoardIP Intellectual propertyIPR Intellectual property rightsMICT Ministry of Information, Culture and TourismMoLISA Ministry of Labor, Invalids and Social AffairsOMB Optical Media BoardPHDR Philippine Human Development ReportPWL Priority Watch ListQBTCC Quiapo Barter Trade Center ComplexSEA Southeast AsiaTRIPS Trade-Related Aspects of Intellectual Property RightsUN United NationsUNDP United Nations Development ProgrammeUNESCO United Nations Educational, Scientific and Cultural OrganizationUSDC United States Department of Commerce

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USTR United States Trade RepresentativeVCD Video Compact DiscVHS Video Home SystemWB World BankWB-IFC World Bank-International Financial CorporationWIPO World Intellectual Property OrganizationWL Watch ListWTO World Trade Organization

The original version of this book was revised. An erratum to this book can be found at https://doi.org/10.1007/978-981-287-922-6_8

Abbreviations