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INTELLECTUAL PROPERTY RIGHTS IN THE PHILIPPINES Brief Background The Philippine government has made it a State policy to protect

and promote intellectual property rights. This policy was enshrined both in the 1973 Constitution which provides that the exclusive right to inventions, writings and artistic creations shall be secured to inventors, authors, and artists for a limited period and in the 1987 Constitution which explicitly mandates that the State shall protect intellectual property. The Philippines became a member of the World Intellectual Property Organization [WIPO] in 1980. It was a signatory to a number of significant multilateral international agreements and treaties for the protection and promotion of intellectual property rights. The first laws protecting intellectual property rights were enacted in the Philippines in 1947, to wit: Republic Act No. 165 otherwise known as An Act Creating a Patent Office, Prescribing its Powers and Duties, Regulating the Issuance of Patents and Appropriating Funds Therefor. Republic Act No. 166 otherwise known as An Act to Provide for the Registration and Protection of Trade Marks, Trade Names and Service Marks, Defining Unfair Competition and False Marking and Providing Remedies Against the Same, and for other Purposes. Subsequent to the foregoing, additional laws were enacted and issuances promulgated to further promote and protect intellectual property rights, to wit: Republic Act No. 422 transferring the examination of copyright applications to the Bureau of Public Libraries. Republic Act No. 623 regulating the use of duly stamped or marked bottles, boxes, casks, kegs, barrels, and other similar containers; providing, in the case of foreign applicants, for reciprocity and recognition of their priority rights; establishing, in the case of trademarks, principal and supplemental as well as interference proceedings; extending protection of utility models and industrial designs under the patent system; and providing, in the case of trademark registration, for reciprocity arrangement with other countries. Republic Act No. 5434 providing for a uniform procedure for appeals from the decision of quasi-judicial officers including the Director of Patents. Administrative Order No. 94 [November 20, 1967] creating a committee to review the Philippine patent system and recommend amendatory laws to further upgrade it. Presidential Decree No. 721 creating the Legal Services Division and the Research and Information Division in the Philippine Patent Office. Subsequently, major reorganization of the various Divisions was made in the 1980's. The General Organic Chemistry Division and the ChemicalTechnology Division were merged to form the Chemical Division. The Mechanical-Electrical Divisionwas merged with the Mechanical, Design, Utility Model Division and Electrical Division to form the Mechanical and Electrical Examining Division. Presidential Decree No. 1263 amending Republic Acts Nos. 165 and 166, granting authority to the Philippine Patent Office to increase its fees and to spend a portion of its income for priority projects; exempting indigent inventors who filed their application for patent through the Philippine Inventor's Commission from all fees charged by the Philippine Patent Office; and shortening the period for thegrant of a compulsory license from one hundred eighty [180] days to one hundred twenty [120] daysfrom the date the petition is filed in cases where the compulsory license applied for is on a patented product or process involving any project approved by the Board of Investments [BOI].

Executive Order No. 133 [February 27, 1987] merging the Philippine Patent Office with the then Technology Transfer Board thereby creating the Bureau of Patents, Trademarks and Technology Transfer [BPTTT]. Executive Order No. 60 was issued in 1993 creating the Inter-Agency Committee on Intellectual Property Rights [IAC-IPR] under the Office of the President of the Philippines. Department Administrative Orders Nos. 5 and 6 introduced amendments to the Rules of Practice in Patent and Trademark Cases and the Rules of Procedures of the Technology Transfer Registry effective on March 15, 1993.cralaw Republic Act No. 8293 otherwise known as the Intellectual Property Code of the Philippines was enacted and signed into law in 1997. It took effect on January 1, 1998.



The law: Republic Act No. 8293 [An Act Prescribing the Intellectual Property Code and Establishing the Intellectual Property Office, Providing for Its Powers and Functions, and for Other Purposes] otherwise known as the Intellectual Property Code of the Philippines. State policy declaration: The State recognizes that an effective intellectual and industrial property system is vital to the development of domestic and creative activity, facilitates transfer of technology, attracts foreign investments, and ensures market access for our products. It shall protect and secure the exclusive rights of scientists, inventors, artists and other gifted citizens to their intellectual property and creations, particularly when beneficial to the people, for such periods as provided in this Act. The use of intellectual property bears a social function. To this end, the State shall promote the diffusion of knowledge and information for the promotion of national development and progress and the common good. It is also the policy of the State to streamline administrative procedures of registering patents, trademarks and copyright, to liberalize the registration on the transfer of technology, and to enhance the enforcement of intellectual property rights in the Philippines. Effect on international conventions and on principle of reciprocity: Any person who is a national or who is domiciled or has a real and effective industrial establishment in a country which is a party to any convention, treaty or agreement relating to intellectual property rights or the repression of unfair competition, to which the Philippines is also a party, or extends reciprocal rights to nationals of the Philippines by law, shall be entitled to benefits to the extent necessary to give effect to any provision of such convention, treaty or reciprocal law, in addition to the rights to which any owner of an intellectual property right is otherwise entitled by this Act.

Laws repealed: Republic Act No. 8293 repealed all Acts and parts of Acts inconsistent therewith, more particularly: 1. Republic Act No. 165, as amended [An Act Creating a Patent Office, Prescribing its Powers and Duties, Regulating the Issuance of Patents, and Appropriating Funds Therefor]; 2. Republic Act No. 166, as amended[An Act to Provide for the Registration and Protection of Trademarks, Trade-Names, and Service-Marks, Defining Unfair Competition and False Marking and Providing Remedies Against the Same, and for Other Purposes].cralaw 3. Presidential Decree No. 49 [Decree on the Protection of Intellectual Property]; 4. Presidential Decree No. 285, as amended [Decree on the Protection of Intellectual Property]; 5. Articles 188 and 189 of the Revised Penal Code of the Philippines. Parts of the law: The Intellectual Property Code of the Philippines is divided into five [5] parts, to wit: PART I PARTI I PART III PART IV PART V - The Intellectual Property Office - The Law on Patents - The Law on Trademarks, Service Marks and Trade Names - The Law on Copyright - Final Provisions

Intellectual property rights under the I. P. Code: The intellectual property rights under the Intellectual Property Code are as follows: 1. 2. 3. 4. 5. 6. 7. Copyright and related rights; Trademarks and service marks; Geographic indications; Industrial designs; Patents; Layout designs [topographies] of integrated circuits; and Protection of undisclosed information.

Government Agencies: The agency of the government in charge of the implementation of the Intellectual Property Code is the Intellectual Property Office which replaced the Bureau of Patents, Trademarks and Technology Transfer. It is divided into six [6] Bureaus, namely: [1] [2] [3] [4] [5] [6] Bureau of Patents; Bureau of Trademarks; Bureau of Legal Affairs; Documentation, Information and Technology Transfer Bureau; Management Information System and EDP Bureau; and Administrative, Financial and Personnel Services Bureau.

Functions of the Intellectual Property Office: The Intellectual Property Office is mandated under the law to: 1. Examine applications for the grant of letters patent for inventions and register utility models and industrial designs; 2. Examine applications for the registration of marks, geographic indication and integrated circuits; 3. Register technology transfer arrangements and settle disputes involving technology transfer payments covered by the provisions of Part II, Chapter IX on Voluntary Licensing and develop and implement strategies to promote and facilitate technology transfer; 4. Promote the use of patent information as a tool for technology development; 5. Publish regularly in its own publication the patents, marks, utility models and industrial designs, issued and approved, and the technology transfer arrangements registered; 6. Administratively adjudicate contested proceedings affecting intellectual property rights; and 7. Coordinate with other government agencies and the private sector efforts to formulate and implement plans and policies to strengthen the protection of intellectual property rights in the country. Significant features of the law: 1. A shift was made from the "first-to-invent system" under R. A. 165 [old law] to "first-to-file system" under the new law. 2. In the case of inventions, the period of the grant was increased from 17 years from grant under the old law to 20 years from date of filing under the new law. 3. In the case of utility models, the previous grant of 5 years plus renewals of 5 years each under the old law was changed to 7 years without renewal under the new law. 4. In the case of industrial designs, the previous grant of 5 years plus renewals of 5 years each was maintained. 5. Under the old law, there was no opposition proceedings and the examination is mandatory; under the new law, the examination is made only upon request [possibly with or without examination]. 6. Under the old law, publication is made after the grant; under the new law, publication is effected after 18 months from filing date or priority date. 7. Under the old law, the penalties for repetition of infringement are: PhP10,000 and/or 5 years of imprisonment and the offense prescribes in 2 years; under the present law, the penalties range from PhP100,000 to PhP300,000 and/or 6 months to 3 years of imprisonment and the offense prescribes in 3 years.

Significant changes in the trademark law: The significant changes in the trademark law under the old law [R. A. No. 166] and the present law are as follows: 1. Under the former, the element of use before filing a local application is a requirement although this is not required when the application is based on foreign registration; while under the latter, the element of use has been eliminated as a requirement for application. 2. Under the former, the term granted is 20 years renewable for 20-year periods; while under the latter, the term is for 10 years, renewable for 10-year periods. 3. Under the former, the affidavit of use or non-use is required on the 5th, 10th and 15th anniversaries; while under the latter, proof of use within 3 years from the filing of the application is required and the affidavit of use should be filed within 1 year from the 5th anniversary. 4. Under the former, a Supplemental Register is required to be maintained; while under the latter, it is no longer required. 5. Under the former law, penalties for infringement, unfair competition, false designation of origin and false description or representation range from fine of PhP500 to PhP2,000 and/or 6 months to 3 years and 4 months of imprisonment; while under the latter law, the penalties range from fine of PhP50,000 to PhP200,000 and/or 2 to 5 years of imprisonment. Significant changes in the copyright law: It is now required that after the first public dissemination of performance by authority of the copyright owner of certain specified work, there shall, for the purpose of completing the records of the National Library and the Supreme Court library, within three (3) weeks, be registered and deposited with it, by personal delivery or by registered mail, two (2) complete copies or reproductions of the work in such form as the directors of said libraries may prescribe.cralaw The scheme of penalties for infringement has also been changed. From the previous fine of Php200 to Php2,000 and/or imprisonment of 1 year, the current range of penalties are as follows:

For first offenders - fine of PhP50,000 to PhP150,000 and/or imprisonment of 1 to 3 years For second offenders - fine of PhP150,000 to PhP500,000 and/or imprisonment of 3 to 6 years For third and subsequent offenders - fine of PhP500,000 to PhP1.5 Million and/or imprisonment of 6 to 9 years. In case of insolvency, the offender shall furthermore suffer subsidiary imprisonment.

Intellectual Property Defined Intellectual Property (IP) is a very debated thing, as we have seen so far. It is not the idea that is so touchy, but the use of it. IP comes in vaguely two forms: industrial property and copyright. Industrial property includes patents, trademarks and industrial designs[16]. Copyright includes literary and artistic works. All of these things are tangible items. Music, sculptures and novels can all be copyrighted, but ideas cannot. IP is a constructed protection of the physical form of people's ideas. The construct of IP is not so bad. It protected Gutenberg and his printing press and Mozart when produced his many orchestral compositions, but we see that IP is being used more to stifle creativity rather than protect it with each new court case (e.g. Napster, Streamcast, etc). Uses of IP It seems that IP is best used as an economic tool. There will always be drawback to using IP, but that is really the nature of usefulness. Not everything on Earth has only good uses or only bad uses. We can see this in computers, where the same computer can be used by a researcher and a hacker. The original intent of the computer will blur in light of what the users intent is. The same goes for IP. IP as an economic tool includes the marketing or contracting of licenses, patents, trademarks, in both commercial and private transactions. Patents are grants from the government giving exclusive rights to ``make, use, and sell a product for 20 years.'' Their attributes include providing strong protection, and total exclusivity. Their downsides include long expensive, technical processes, and inventors must make all the details of their product known to the public. Copyrights are the most common form of protection. The reason for this is that copyrights are very easy to obtain. As soon as one finishes writing a piece, the piece has been copyrighted. Trade secrets are the riskiest of the four areas. If one can keep a trade secret, he or she will have exclusive rights to that product forever. However, the trick is to keep a trade secret. Reverse engineering has made it so that almost every product can be replicated. If one tries to use a trade secret, the benefit is great, but the downfall is huge. If one's trade secret is discovered, the inventor loses everything. They will have no further claim on the product. The longest running trade secret is the formula for Coca-Cola. In 1886, a pharmacist named John Pemberton invented Coca-Cola. The Coca-Cola Corporation never applied for a patent. They relied on their trademark secret. Although many companies have reverse engineered the product, none have obtained the particular flavor of Coke. With a patent, Coke would have had to give up its secrets, but would be protected no matter what. With a trade secret, the information stays theirs, but if their secret is ever discovered, they will be sorely out of luck.

Trademark is a name or symbol used to show that a product is made by a specific company and legally registered so that no other manufacturer can use it The benefit of trademarking something is first to ensure that one creates something that speaks of their product. If one produces an item and then a certain slogan or picture can be automatically linked to the product, more consumers will purchase it. For example, one is more likely to buy Band-Aid brand bandaides than any other brand. The second benefit is that if anyone wants to use another's trademark, they must pay the owner. If for example, if one wanted to use three stripes on the design of their new running shoes, they would have to get permission from and compensate Adidas.