Sociological Perspectives on Media Piracy

in the Philippines and Vietnam

Vivencio O. Ballano

Sociological Perspectives on
Media Piracy in the
Philippines and Vietnam
Vivencio O. Ballano
St. Paul University
Quezon City, Philippines

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

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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.

v
vi Acknowledgments

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.
Sociological Perspectives on Media Piracy
in the Philippines and Vietnam

Vivencio O. Ballano

vii
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

ix
x Contents

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 xi

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
xii Contents

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

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

Abbreviations

AmCham American Chamber of Commerce Vietnam

ANT Actor–network theory
APEC Asia-Pacific Economic Cooperation
ASEAN Association of Southeast Asian Nations
BEBA Bureau of Economics and Business Affairs
CD Compact Disc
DVD Digital Versatile Disc
EDCA Enhanced Defense Cooperation Agreement
EU European Union
FTA Free Trade Agreement
GATT General Agreement on Tariffs and Trade
GSP Generalized Special Preferences
HCMC Ho Chi Minh City
IFC International Financial Corporation
IIPA International Intellectual Property Alliance
ILO International Labor Organization
IMF International Monetary Board
IP Intellectual property
IPR Intellectual property rights
MICT Ministry of Information, Culture and Tourism
MoLISA Ministry of Labor, Invalids and Social Affairs
OMB Optical Media Board
PHDR Philippine Human Development Report
PWL Priority Watch List
QBTCC Quiapo Barter Trade Center Complex
SEA Southeast Asia
TRIPS Trade-Related Aspects of Intellectual Property Rights
UN United Nations
UNDP United Nations Development Programme
UNESCO United Nations Educational, Scientific and Cultural Organization
USDC United States Department of Commerce

xiii
xiv Abbreviations

USTR United States Trade Representative

VCD Video Compact Disc
VHS Video Home System
WB World Bank
WB-IFC World Bank-International Financial Corporation
WIPO World Intellectual Property Organization
WL Watch List
WTO World Trade Organization