Mastercard,Visa told to stop payment of counterfeit items

The government would require payment gateways Mastercad and Visa to stop payment of transactions to sellers of counterfeit items sold in malls in an intensified effort to protect intellectual property rights.

IPOPHL Director General Josephine Santiago said that the third party liability will cover trademarks under the proposed amendments to the IP Code, which currently covers the copyright but not trademarks.

The inclusion of trademarks would cover the sale of counterfeit bags and shoes and other articles sold in the malls.

Santiago said they have submitted their draft for the revised IP Code to the respective trade committees in the Senate and House.

Santiago said that the IP Code amendment on trademark would not just include taking down and shutting down of online platforms with sellers of counterfeit items but they would use the word “disrupt” the operations of these platforms.

The revision now covers payment gateways Mastercard and Visa on the so-called “project charge back” where they would be required to impose certain measures to stop payment.

“This is a stronger approach to addressing these issues online,” he said.

At present, the landlord liability is only on copyright goods but not counterfeit products which are the trademark items.

DTI secretary Ramon M. Lopez said this would push for legislation where retailers and mall owners for the brick and mortar establishments and the online platforms to have third party liability for sellers of counterfeit items.

“This way they will be able to police their ranks also,” said Lopez. (BCM)