Legal factors

 consumer protection and security laws

- Malpractice 

OTT should be legally prepared if they plan to change in current plans, policies, and even
subscription hikes to ensure that it would not infringe on any existing consumer protection laws
in the Philippines particularly, the 1987 Philippine Constitution and Republic Act No. 7394, or
the Consumer Act of the Philippines, that protect consumers from trade malpractices, and
specifies the rights of consumers and the responsibilities of sellers, producers, retailers,
distributors, and manufacturers.

For instance, recently a Netflix produced and distributed movie called the Laundromat which
have been sued by the law firm Mossack Fonseca due to allegations of false advertising,
defamation, false light invasion of privacy, trademark infringement by dilution, and federal false
advertising". These issues are particularly significant and requires immediate attention because it
could easily and drastically affect the OTT’s standing in the country if it experiences a similar
issue in the future, under the Philippine context.

- Data Privacy

Moreover, considering that OTTs are dependent on the internet, they should also take into
consideration Philippines’ data privacy act since many streaming platforms collect sensitive
information including personal data, and financial information which may be susceptible to data
theft.

An instance of data privacy theft in PH is the Cambridge Analytica issue. In this particular case,
Cambridge Analytica stole millions of data from Filipino Facebook users, which they then used
for political campaigns and manipulation of voter opinion. This exact scenario reaffirms the need
to strengthen online frameworks, and OTTs should be extra vigilant considering that they have
access to some of our personal and financial data. 

 Copyright issues and intellectual property rights 

- Countering media piracy and illegal downloads in the Philippines 

Much like other countries, online piracy and cyber security are legal issues that directly affect
OTTs in the Philippines. Establishing precautionary measures to avoid and deflect any effort to
pirate their content are essential to ensure smooth business operations in the country.

Real life examples

https://torrentfreak.com/amazon-patents-technology-to-track-down-streaming-pirates-201121/ 

Many OTTs and streaming platforms have spearheaded this anti-piracy movement, and even
Amazon have patented a technique to crackdown on this prevalent form of digital crime. The
company has had some achievements with regards to this challenge but copyright infringement
remains a pervasive issue. As with other streaming platforms, almost every Amazon movie, film,
or series, is pirated shortly after its release.

- Acquiring appropriate copy and distribution rights for original Filipino movies

Lastly, there are many locally made movies that are being distributed online, thus OTTs should
abide by adhering to intellectual property laws in the Philippines by legally acquiring distribution
and copyrights for any films, videos, or other forms of media they might disseminate to the
general public for consumption. 

For instance, Netflix is not new to copyright disputes; the most notable of them was the
Chappelle's Show dispute, which they quickly resolved. If OTTs in the Philippines wish to
ensure a peaceful collaborative business relationship in the country, they should respect
copyright laws and appropriately work together and maintain transparency with their
stakeholders.

 Employment laws and regulations

- Philippines’ labor code

In the Philippines, both employers and employees are subject to the country’s labor code, an
enacted law that prescribes specific practices and norms that businesses should follow and
adhere to. In extension, Ott’s should therefore meticulously align their business practices and
models to this legal employment framework, this includes abiding by the proper process of
hiring, a competent human resource development program, health safety, and social welfare,
labor relations, and a good working environment among others.

\https://www.reuters.com/world/us/amazon-accused-violating-us-labor-law-after-union-
supporters-arrests-2022-02-25/

https://www.bloomberg.com/news/articles/2022-01-27/amazon-illegally-threatened-staff-labor-
board-complaint-alleges

https://blr.dole.gov.ph/2014/12/11/labor-code-of-the-philippines/#:~:text=The%20Labor
%20Code%20of%20the,his%20then%20extant%20legislative%20powers.

One specific example of the prevalence of employment issues in this new age involves amazon,
or amazon prime’s parent company. This organization have faced numerous allegations of poor
working conditions, and the suppression of labor unions, a right that is featured in the
Philippines’ labor code. It is therefore imperative that OTTs, specifically from other countries
practice ethical, legal and appropriate business systems, in accordance to our laws and
regulations should they wish to continue business here in the country.