AI alarm: Evaluating current developments in copyright

June 5, 2024 | 12:01 am

“Fair use is the bedrock of creativity. It allows artists to produce versions of music, authors to quote from novels, and educators to enhance learning materials. By striking a balance between protection and access, fair use fosters a vibrant cultural ecosystem.”

— Rowel S. Barba, Director General of the Intellectual Property Office of the Philippines (IPOPHL)

OpenAI, a research and deployment company that primarily focuses on the use of artificial intelligence (AI), has recently come under fire for the alleged use of Hollywood actress Scarlett Johansson’s voice, notwithstanding her earlier refusal to license her voice for such purposes.

Artificial intelligence has opened avenues for generating new work, but often at the ire of creatives, who claim that their original work is used and regurgitated without their consent, and without any form of compensation received. While AI art has been the focal point of most news, AI-fabricated media also has more dangerous political implications.

For example, last April, the Presidential Communications Office (PCO) of the Philippines released an official statement repudiating a manipulated audio clip seemingly conveying that President Ferdinand Marcos, Jr. ordered the Armed Forces of the Philippines to take action against a particular foreign country. In response to this, a complaint was filed with the Philippine National Police’s Anti-Cybercrime Group (ACG) to counter the rise of several counts of manipulated digital media that promote anti-government propaganda released to the public.

Audio and video clips that are manipulated and altered through artificial intelligence, or AI-fabricated media, have plagued the movement fighting against disinformation in recent years. AI-fabricated media can create the impression that an otherwise reliable source spreads false information. It affects the personality and privacy rights of those subjects featured in the AI-fabricated piece itself.

Aside from personal and political dangers posed by AI-fabricated media, its propagation also creates new challenges as to the protection of intellectual property rights.

Current copyright and intellectual property laws generally fall short in addressing the issues brought about by AI-fabricated media due to how novel the matter is. Clearly a copyright owner’s exclusive rights to replicate, transform, distribute, and publicly display his or her work are particularly targeted by the unauthorized alteration and spread of such manipulated media. Thus, a copyright owner may file for infringement and for removal of such manipulated media.

However, a defendant may use the doctrine of fair use to combat allegations of copyright infringement. The doctrine of fair use allows the use of copyrighted work for the following purposes: criticizing, commenting, news reporting, teaching, creating research, and other analogous reasons. The list of purposes under the Intellectual Property Code (IP Code) are not exhaustive. The following factors are also considered in determining whether copyrighted work was used in line with the doctrine:

The purpose and character of the use, including whether such use is of a commercial nature or is for non-profit educational purposes;
The nature of the copyrighted work;
The amount and substantiality of the portion used in relation to the copyrighted work as a whole; and
The effect of the use upon the potential market for or value of the copyrighted work.

Furthermore, the Supreme Court in the case of ABS-CBN v. Gozon et al. ruled that “[t]he ‘transformative test’ is generally used in reviewing the purpose and character of the usage of the copyrighted work. This court must look into whether the copy of the work adds ‘new expression, meaning or message’ to transform it into something else.” It is a debate if manipulated videos and audio, such as AI-fabricated media, are considered fair use of copyrighted work.

On one hand, one can argue AI-fabricated media are considered fair use due to the “transformative” element added to the copyrighted work after manipulation. On the other hand, considering the four factors under Section 185.1 of the IP Code, AI-fabricated media may not be considered fair use of a copyrighted work if any one of the criteria, especially effect of market value, is unmet.

In line with the new age of technology and the resulting “creative works,” IPOPHL recently released the “Guidelines on Statutory Fair Use in the Intellectual Property Code” in March 2024. The new guidelines clarify in more detail the criteria to be fulfilled to use copyrighted material without committing infringement, with special focus on copyright limitations.

The guidelines are split into three sections, with Part I referring to acts under Sec. 184 of the IP Code, including private recitation or performance, recordings in educational institutions, and ephemeral recordings, among others; Part II delving into other items under Sec. 184 of the IP Code, such as quotations from a published work, illustration for teaching purposes, and government works; and Part III which looks into Sections 186 to 189 of the IP Code such as works of architecture, private reproduction of published work, reprographic reproduction by libraries, and reproductions of computer programs.

Elements for each form of fair use were provided, with relevant provisions of the IP Code and treaties, such as the Berne Convention, referenced and explained when necessary. The guidelines are certainly a step forward in striking a balance between the creation of transformative work and protecting the copyright of original creators.

However, it is clear there is a legal lacuna in the country regarding AI-fabricated media, as there is still a lack of standards to be followed in light of recent controversies. Knowing now that such use of copyrighted material has the potential to spread misinformation and cause political unrest means it is necessary to address the gap in the law. Perhaps in the near future, intellectual property laws in the Philippines will develop further standards related to fair use and copyright to tackle modern day challenges posed by artificial intelligence and technology.

This article is for informational and educational purposes only. It is not offered and does not constitute legal advice or legal opinion.

Beatriz Maria Sofia C. Pangalangan is an associate of the Intellectual Property Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

bcpangalangan@accralaw.com

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DoTr: SMC conducting feasibility on realignment sites for MRT-7’s Bulacan segment

June 5, 2024 | 12:01 am

THE DEPARTMENT of Transportation (DoTr) said it will inspect this month the proposed realignment sites for Metro Rail Transit Line 7 (MRT-7), a project of San Miguel Corp. (SMC).

“We had a meeting last month with the San Jose del Monte LGU (local government unit). We have agreed that this June, we will do the site inspection,” Transportation Assistant Secretary for railways Jorjette B. Aquino told reporters on the sidelines of a forum on Tuesday.

“We will study the realignment,” she added.

Last week, the Transportation department announced three realignment proposals from the Bulacan local government.

In a May 28 interview with Radyo5, TV5’s radio station, Bulacan Mayor Arthur B. Robes said that the San Jose del Monte route should use the bypass roads rather than the Quirino highway.

“The Tungkong Mangga, a barangay in San Jose del Monte, if you put up poles there, the area will not be passable anymore because the road is too narrow,” he said.

“The Tungkong Mangga is initially part of the original route, but (the original plan) will pass through the back end and not the existing national road. Tungkong Mangga is huge but the national road is too narrow,” he added.

MRT-7, which will have 14 stations, will run from Quezon City to San Jose del Monte, Bulacan, and is expected to carry 300,000 passengers daily in its first year, and up to 850,000 passengers a day in its 12^th year.

SMC is financing the construction and will operate the 23-kilometer commuter rail system after signing a 25-year concession agreement with the government.

With the recent realignment proposals, SMC is also conducting feasibility and ridership studies to determine whether the realignment sites are viable, Ms. Aquino said.

“Our discussion with San Jose del Monte LGU and SMC is ongoing, but we have already scheduled a joint inspection to assess the proposed alignments,” she noted.

In May, Transportation Secretary Jaime J. Bautista said the MRT-7 project was experiencing delays due to the right-of-way issues in San Jose del Monte.

DoTr has said the MRT-7 project will still start partial operations, or up to its 12^th station, by December 2025.

Once the right-of-way issues are resolved, the station in Bulacan will be operated between 2027 and 2028. — A.E.O. Jose

PSEi member stocks performed — June 4, 2024

June 5, 2024 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, June 4, 2024.

Palay production target still within reach — DA

June 4, 2024 | 9:04 pm

palay-farmers — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE Department of Agriculture (DA) on Tuesday said it is sticking with its palay (unmilled rice) production target of 20.44 million metric tons (MT) for 2024 despite the impact of climate events on the agriculture industry.

In a statement, Agriculture Undersecretary for Rice Industry Development Christopher V. Morales said that the DA has tapped private organizations to extend the reach of the rice production program.

“We’re optimistic since it’s still early June. We’re still aiming for that. We’re doing our best to achieve that,” he added.

The 20.44 million MT target represents a downgrade of the initial 20.8 million MT set early in the year, adjusted in view of the El Niño.

The DA has estimated the damage caused by El Niño at P6.35 billion, with rice as the most affected crop, sustaining damage of P3.3 billion or 134,828 MT.

Last year, palay production was 20.06 million MT.

The Rice Tariffication Law, or (Republic Act No. 11203) allocates P10 billion per year to support the Rice Competitiveness Enhancement Fund.

Mr. Morales said that domestic rice supply has remained “manageable,” amid the continuous entry of imported rice to make up for shortfalls in domestic production.

Also on Tuesday, the National Economic and Development Authority approved further reductions in rice import tariffs to 15% from the 35%, as ordered by Executive Order No. 50.

The US Department of Agriculture forecast rice imports for 2025 at 4.2 million MT, exceeding its revised estimate of 3.9 million MT for this year. The Philippines remains the world’s top rice importer.

Mr. Morales said DA programs like the provision of hybrid seed and contract growing programs of the National Irrigation Administration should also boost palay production.

The Masagana Rice Industry Development Program aims to stabilize the rice supply at between 24.99 million MT and 26.86 million MT, moderating growth in rice prices to less than 1% annually. — Adrian H. Halili

PHL requires up to P31 trillion in investment to hit energy targets

June 4, 2024 | 9:03 pm

By Sheldeen Joy Talavera, Reporter

THE PHILIPPINES will need between P20 trillion and P31 trillion worth of investment to properly implement the Philippine Energy Plan (PEP), which will involve boosting the share of renewable energy (RE) in the power mix, the Department of Energy (DoE) said.

“When we talk about renewable energy, we need a total investment of P20 trillion to P31 trillion,” Energy Undersecretary Rowena Cristina L. Guevara said at the Asian Development Bank (ADB) forum on Tuesday.

RE currently holds a 22% share of the power generating mix. The government is aiming to increase this share to 35% by 2030 and 50% by 2040.

Other strategies for hitting the target include building smart and green transition system, building up port infrastructure to facilitate the servicing of offshore wind farms, and voluntary early decommissioning or repurposing of coal-fired power plants.

The funding can be provided by the private sector and the banking system, Ms. Guevara said on the sidelines of the forum.

However, she said that the government is encountering challenges, including permitting issues.

As of February, the DoE had awarded over 1,300 renewable energy service contracts with a potential capacity of over 134,000 megawatts (MW).

Many developers tend to stall out in the pre-development stages and may not continue with their projects, she said.

Ms. Guevara said the DoE is targeting over 52.8 gigawatts (GW) of renewable energy on top of the existing and committed power plants in the Philippines.

Of the total, 27,000 MW are solar projects, 16,600 MW wind, 6,000 MW hydro, 2,500 MW geothermal, and 360 MW biomass.

“About 134,631.87 MW potential capacity can still be tapped from projects in the pre-development and development stages,” Ms. Guevara said.

“We need more encouragement for our banking sector to engage in renewable energy investments,” Ms. Guevara said at the forum.

Citing a study funded by the Rockefeller Foundation, Ms. Guevara said Philippine banks “can actually finance two-thirds of our energy transition.”

“But they need a leader who will help them understand the risks and rewards of investing in renewable energy,” she said.

Ms. Guevara said that to meet the 52.8 GW target, “we have to almost double our transmission system” which currently can support power generation of 28 GW.

Among the major projects of the National Grid Corp. of the Philippines is the Mindanao-Visayas Interconnection Project and the Cebu-Negros Panay Project.

The Hermosa-San Jose 500-kiloVolt Transmission Line, which has been stalled by a temporary restraining order, is targeted to be completed by July 15, Ms. Guevara said.

Warda Ajaz, project manager for the Asia Gas Tracker at the think tank Global Energy Monitor, said that the Philippines “boasts impressive solar PV (photovoltaic) and wind energy potential.”

To avoid being reliant on “economically volatile and insecure fuel sources” such as liquefied natural gas (LNG), she said that the country should instead put its investment into renewable energy.

“The billions of dollars being spent on new LNG infrastructure should instead be diverted toward scaling up renewable energy capacity to ensure a sustainable, secure, and economically stable energy future,” she said in an e-mail to BusinessWorld on May 31.

New LNG infrastructure risks “technological lock in” which will delay the transition to renewable energy, she said.

“Policymakers should prioritize investments in renewable infrastructure and technologies, along with energy storage solutions, to provide reliable and clean baseload power,” she said.

Red alert on power grid possible this week — DoE

June 4, 2024 | 9:03 pm

Electric-pylon-Transmission-lines — NGCP.PH

THE Department of Energy (DoE) said a red alert on the power grid is possible this week due to continuing elevated heat and forced outages at some power plants.

“This week, there is still a possibility for a red alert,” Energy Undersecretary Rowena Cristina L. Guevara said on the sidelines of an Asian Development Bank forum on Tuesday.

Ms. Guevara said the Energy department has urged power plant operators whose facilities are on forced outage or running derated to bring their plants into full operation as soon as possible.

With the start of the rainy season, Ms. Guevara said the department “expects demand to decline,” reducing the likelihood of red and yellow alerts.

In an advisory early Tuesday, the National Grid Corp. of the Philippines (NGCP) placed the Luzon grid on yellow alert between 1 p.m. to 5 p.m. and 6 p.m. and 12 midnight.

The grid operator estimated peak demand on Tuesday at 13,612 megawatts (MW), against available capacity of 14,461 MW.

A total of 14 power plants have been on forced outage and four plants are running derated, resulting in 2,280.8 MW left unavailable to the grid.

Apart from forced outages and limited capacities, the NGCP said the Angat main power generating facility was also unavailable due to low water levels.

The NGCP also noted the increase in forecast demand by about 600 MW compared to the previous day.

“The Visayas and Mindanao grids are operating normally,” the grid operator said.

In a statement on Tuesday, Manila Electric Co. (Meralco) said it obtained commitments from Pioneer Float Glass Manufacturing, Inc. and Anglo Watsons Glass, Inc. to reduce their power draw from the grid under the Interruptible Load Program (ILP).

ILP participants are large power users that maintain their own backup generators. When supply is tight, they activate their generators, reducing overall demand on the grid.

Meralco said Pioneer Float Glass will sign a deal to deload 2 ME when needed. The arrangement involves its manufacturing plant in Pinagbuhatan, Pasig City.

Meralco said that Pioneer Float Glass voluntarily de-loaded 1.5 MW without compensation during the red alerts in April.

Meanwhile, Anglo Watsons has yet to finalize its participation but voluntarily de-loaded 1.3 MW during the red alert on May 28.

Once fully enrolled, it will reduce its draw from the grid by 2.3 MW at its facility in Calamba, Laguna.

The ILP commitments were a result of Meralco’s engagement of key industries including the Glass Manufacturers Association of the Philippines.

“These commitments reflect our shared dedication to alleviating strain on the power grid, ultimately benefiting thousands of small businesses and households by minimizing rotational power interruptions,” Meralco Vice-President and Head of Enterprise and National Government Ma. Cecilia M. Domingo said.

At present, over 100 companies have enrolled in the ILP representing more than 500 MW in capacity for de-loading within the Meralco franchise area.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Power spot prices up in May on sustained high demand

June 4, 2024 | 9:03 pm

ELECTRICITY spot price at the Wholesale Electricity Spot Market (WESM) rose in May due to sustained high system demand, the Independent Electricity Market Operator of the Philippines (IEMOP) said.

The IEMOP reported that the average electricity spot price system wide between April 26 and May 25 rose 19.1% to P8.22 per kilowatt-hour (kWh).

Supply increased 2.3% to 19,648 megawatts (MW) while demand grew by 9.1% to 15,688 MW from 14,375 MW.

For Luzon, the spot price jumped 24.8% to P8.28 per kWh.

Demand on the main island rose 10.3% to 11,369 MW. Available capacity rose 5.3% to 14,003 MW.

The WESM price at the Visayas rose by 0.9% to P8.81 per kWh from P8.73 per kWh previously.

Supply was 2,409 MW, higher by 2.6% from the 2,347 MW. Demand increased by 8.3% to 2,186 MW from 2,002 MW.

The average spot price in Mindanao was P7.26 per kWh, up 13%.

Supply fell 8.9% to 3,235 MW, while demand increased 4.3% to 2,152 MW.

IEMOP operates the WESM, which is where energy companies can buy power when their long-term contracted power supply is insufficient for customer needs. — Sheldeen Joy Talavera

PHL visitor volumes to Vietnam grow after Da Nang direct flights

June 4, 2024 | 9:02 pm

By Justine Irish D. Tabile, Reporter

SHANGHAI — Vietnam’s largest hospitality and leisure brand said Filipino visitor numbers have risen after the launch of direct flights from the Philippines to Da Nang, in central Vietnam.

Hana Ngo, deputy chief executive officer of Vinpearl, said on the sidelines of a signing ceremony on Tuesday last week that more Filipinos are booking at the group’s hotel in the city.

“The direct flight from the Philippines to Da Nang is the reason why customers from the Philippines are increasing,” Ms. Ngo told BusinessWorld.

She said visitors from the Philippines tend to book farm tours when in the city.

One of the airlines that launched direct flights to Da Nang is budget carrier Cebu Pacific, whose Manila-Da Nang service, launched in December, operates three times a week.

Prior to the launch of direct services, which take three hours, visitors from Manila had to visit Hanoi, Ho Chi Minh City, or connect in a third country to travel to Da Nang. Flight involving connections can take up to 10 hours.

The Department of Tourism said Vietnam is the 13^th most visited destination for Philippine residents.

Last week, Singapore travel booking service Trip.com Group signed partnership agreements with Vinpearl and the Philippines’ Megaworld Hotels and Resorts, with the aim of promoting Vinpearl and Megaworld properties to Trip.com’s customers worldwide.

JG Summit Olefins tells Tariff Commission HDPE demand depressed by oversupply

June 4, 2024 | 9:02 pm

AN OVERSUPPLY of petrochemical products has depressed demand for high-density polyethylene (HDPE), JG Summit Olefins Corp. told the Tariff Commission.

“It is because of the current petrochemical downturn. We are now at the period of oversupply especially for polyolefins including HDPE,” JG Summit Olefins representative Maria Veron M. Marasigan said in a Tariff Commission hearing on Tuesday.

“This has contributed to the decreased overall consumption,” she added.

In 2022, the Department of Trade and Industry imposed three years of safeguard duties on imports of HDPE pellets and granules to protect domestic industry.

The government imposes a safeguard duty of P1,271 per metric ton of imported HDPE pellets and granules. The current most favored nation rate on HDPEs is 10%.

Ms. Marasigan said that the oversupply has also affected regional markets.

She said the company’s HDPE sales rose 15% last year, giving JG Summit Olefins a 50% market share.

“In the three-year period, there has been an improvement between 2022 to 2023, in terms of market share in HDPE,” Ms. Marasigan added.

JG Summit Olefins, which merged with JG Summit Petrochemical Corp., had been the main proponent of safeguard duties on imported HDPE pellets and granules.

The company narrowed its net loss to P12.9 billion in 2023.

The company is the lone domestic manufacturer of HDPE pellets and granules. — Adrian H. Halili

Regulator still reviewing proposed MRT-3 fare hike

June 4, 2024 | 9:01 pm

THE proposed fare hike for the Metro Rail Transit Line 3 (MRT-3) is still being reviewed by the Rail Regulatory Unit (RRU), the Department of Transportation (DoTr) said.

“On the MRT-3 fare hike, the MRT-3 actually has filed its petition early this year but the timing and rates are still being studied,” Transportation Assistant Secretary for railways Jorjette B. Aquino told reporters on the sidelines of a forum on Tuesday.

In 2023, the DoTr said the fare hike petition may be approved early this year.

Ms. Aquino said the proposal is now being reviewed by the RRU, describing the current status of the application as still in the evaluation process.

“They have not given us a notice for public hearing, so I think they are still in the process of evaluating the timing and rate of increase,” she said.

Once the evaluation is finished, the notice for public hearing will be issued, which will run within one month from the issuance of notice.

She said the evaluation process and the publication of new rates will take at least three months.

The proposed fare hike increase is for a P2.29 in boarding fare, or a 21-centavo increase per kilometer.

In July, the DoTr said the MRT-3’s fare hike petition was refiled after a technical lapse in its previous filing.

The DoTr denied a previous proposal, noting that the MRT-3 management had failed to issue a notice of public hearing. — Ashley Erika O. Jose

Sugarcane crop being sampled to evaluate Kanlaon eruption impact

June 4, 2024 | 9:01 pm

Mount Kanlaon volcano — HANDOUT/COURTESY OF DOLLET DEMAFLIES/AFP

THE Sugar Regulatory Administration (SRA) said on Tuesday that it ordered samples to be taken from the sugarcane crop in Negros Island to evaluate the impact of the Kanlaon Volcano eruption.

“We gathered reports from the field of the strong sulfur smell coupled with the heavy rains in most areas in Central Negros and we know that this can turn into sulfuric acid which may affect our sugarcane,” SRA Administrator Pablo Luis S. Azcona said in a statement.

Late Monday, the Mount Kanlaon eruption sent up a 5,000-meter ash plume, according to the government volcanology service, known as Phivolcs.

He added that the sampling exercise will gather information on the acidity of the soil as well as its effects on cane already planted in the ashfall zone.

The SRA identified the sampling areas as La Castellana, Moises Padilla, Pontevedra and La Carlota City.

“We are hoping that the rains washed out the volcanic ash from planted canes,” he added.

He said that the SRA had received reports that some farmers had taken advantage of the heavy rains following the volcanic eruption to plant canes.

“The general condition of our sugar cane fields is already acidic and we just want to rule out more acidity in affected areas that can cause problems,” Mr. Azcona said.

The SRA will also release P2 million to aid affected areas and P500,000 on medical missions that will address respiratory diseases related to the incident.

Negros Island produces the bulk of the Philippines’ sugar. As of May 12, raw sugar production was 1.92 million MT (MMT), exceeding the year-earlier 1.799 MMT. — Adrian H. Halili

Peso extends decline before inflation data

June 4, 2024 | 9:00 pm

THE PESO sank to a new 19-month trough against the greenback on Tuesday ahead of the release of May inflation data.

The local unit closed at P58.71 per dollar on Tuesday, weakening by three centavos from its P58.68 finish on Monday, Bankers Association of the Philippines data showed.

This was the peso’s worst finish in 19 months or since its P58.80-a-dollar close on Nov. 3, 2022.

The local unit is now down by P3.34 from its end-2023 close of P55.37 versus the greenback.

The peso opened Tuesday’s session stronger at P58.62 against the dollar. Its intraday best was at P58.58, while it dropped to as low as P58.75 versus the greenback.

Dollars exchanged inched up to $1.317 billion on Tuesday from $1.315 billion on Monday.

“The peso weakened anew from domestic caution ahead of the Philippine inflation report [on Wednesday],” a trader said in an e-mail.

The market widely expects headline inflation to have picked up further last month, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Headline inflation may have quickened for a fourth straight month in May due to higher electricity costs, analysts said.

A BusinessWorld poll of 16 analysts conducted last week yielded a median estimate of 4% for the May consumer price index (CPI), within the central bank’s 3.7-4.5% forecast for the month.

If realized, May inflation would be faster than 3.8% in April but slower than the 6.1% print in the same month a year earlier.

This would mark the sixth straight month that headline inflation was within the central bank’s 2-4% annual target.

The Philippine Statistics Authority will release May CPI data on Wednesday (June 5).

For Wednesday, the trader said the peso will likely trade against the greenback depending on the inflation report.

The trader and Mr. Ricafort see the peso moving between P58.60 to P58.80 per dollar on Wednesday. — A.M.C. Sy