The Philippines has stayed off the United States Special 301 Watchlist on intellectual property for the 12th straight year in 2025, the US Trade Representative said late Tuesday.
However, in its report, the USTR continues to raise concerns over the proliferation of counterfeit pharmaceuticals that are manufactured, sold and distributed by numerous trading partners.
The USTR report did not directly identify the Philippines as a source of fake medicines to the US, but it cited a “recent” study by the Organization for Economic Cooperation and Development and the European Union Intellectual Property Office that made mention of sources of counterfeit medicines.
That OECD study found that China, India, Indonesia, Pakistan, the Philippines and Vietnam were allegedly the leading sources of counterfeit medicines distributed globally.
The USTR said, based on the study released in March 2022, US brands are the most popular targets for counterfeiters of medical products, and counterfeit US-brand medicines account for 38 percent of global counterfeit medicine seizures.
While it may not be possible to determine an exact figure, the World Health Organization estimated that substandard or fake medical products comprise 10 percent of total medical products in low- and middle-income countries, the USTR said.
The USTR’s Special 301 Watch List names the countries with inadequate and ineffective IP rights protection and enforcement, and those that impose market access or trade barriers detrimental to American rights-holders and businesses.
The Special 301 Watch List is published by the USTR, after it identifies the countries with unresolved problems in a yearly review. Countries on the watchlist are subject to monitoring and possible trade sanctions.
“The manufacture and distribution of pharmaceutical products and active pharmaceutical ingredients bearing counterfeit trademarks are a growing problem that has important consequences for consumer health and safety and is exacerbated by the rapid growth of illegitimate online sales.
Counterfeiting contributes to the proliferation of substandard, unsafe medicines that do not conform to established quality standards,” the USTR said in the report.
It named India, China, including Hong Kong, the United Arab Emirates and Singapore as top countries of origin for counterfeit pharmaceuticals seized at the US border in 2024.
Meanwhile, the USTR recognized some of the positive steps undertaken by the Philippines in its fight against IP rights violations.
One of these is the creation in March 2024 of a new e-Commerce Bureau under the Department of Trade and Industry to support the DTI’s regulatory oversight of e-commerce transactions, which includes protecting against the sale of counterfeit goods online.
“Specialized IP enforcement units and specialized IP courts also have proven to be important catalysts in the fight against counterfeiting and piracy,” the USTR said.
Other initiatives cited by the report is Intellectual Property Office of the Philippines’ (IPOPHL) “Pirated Inferno” comic book distributed through printed hard copies at the Philippines International Comics Festival and the Manila International Book Fair last year and the agency’s collaboration with a local media company on a “Stream Responsibly: Fight Piracy” campaign.
“Many trading partners conducted IP awareness and educational campaigns, including jointly with stakeholders, to develop support for domestic IP initiatives,” the USTR said.
The USTR also acknowledged the conduct by IPOPHL last year of the National Judicial Colloquium on Intellectual Property Adjudication, which included participation from judges through the Philippine Judicial Academy.
“Another best practice is the active participation of government officials in technical assistance and capacity building,” the report said.
A Philippine official said the USTR decision “puts the country in good favor with trading partners, as it shows commitment to align with international agreements including the Trade-Related Aspects of Intellectual Property Rights Agreement. ”
The USTR recognizes that the Philippines has made a lot of progress in IP protection and enforcement, a clear indication of a more enabling and stronger IP ecosystem, the IPOPHIL official said.
In the country’s bid to attract more foreign investments, including those from the US, this report is a very positive development, the official who declined to be named said.
The best practices could also help attract investors who value IP protection and enforcement as a business strategy, the official said.
