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RA NO 165: June 20, 1947

AN ACT CREATING A PATENT OFFICE, PRESCRIBING ITS POWERS AND DUTIES,


REGULATING THE ISSUANCE OF PATENTS, AND APPROPRIATING FUNDS THEREFOR
CHAPTER I - Organization and Operation
Section 1. Patent Office. - There is hereby created a "Patent Office" under the executive supervision of the
Department of Justice, where all records, books, drawings, specifications, and other papers and things pertaining
to patents shall be safely kept and preserved.
Section 2. Officers and employees of the Patent Office. - The Patent Office shall be under the direction of a
Director who shall have an assistant to be known as Assistant Director. The Director and Assistant Director shall
be appointed by the President with the consent of the Commission on Appointments of the Congress of the
Philippines, and shall hold office during good behavior. The Director shall receive a salary of seven thousand
two hundred pesos a year, and the Assistant Director a salary of six thousand pesos a year.
To carry into effect the provisions of this Act, there shall also be in said office such other officers and employees
as may be appointed by the Secretary of Justice upon recommendation of the Director.
The term "Office" used in this Act means that Patent Office.
The term "Director" used in this Act refers to the Director of Patents or the Assistant Director of Patents when
acting as or performing the duties of the Director.
Section 3. Special technical and scientific assistance. - The Director is empowered to obtain the assistance of
technical, scientific or other qualified officers or employees of other departments, bureaus, offices, agencies and
instrumentalities of the Government, including corporations owned, controlled or operated by the Government,
when deemed necessary in the consideration of any matter submitted to the Office relative to the enforcement of
the provisions of this Act.
Section 4. Seal of Office. - The Office shall have a seal with which patents and other papers issued by it shall be
authenticated. The form and design of the seal shall be approved by the President of the Philippines.
Section 5. Publication of laws and rules. - The Director shall print, or cause to be printed, and make available
for distribution, pamphlet copies of the laws and of the rules and regulations of the Office, and may print
circulars of information relating to matters within the jurisdiction of the Office.
Section 6. Publication of certain matters in the Official Gazette. - There shall be published in the Official
Gazette a suitable view of the drawing, if there be a drawing, and the claims of each patent issued; the rules and
regulations duly promulgated and the amendments thereto; an annual index of the names of investors and
patentees and the title of the inventions covered by the patents issued during each fiscal year; all notices and
decisions required under this Act to be published; and such other information relating to patents and other
matters within the jurisdiction of the Office, as may, in the discretion of the Director, be useful to the public.
CHAPTER II - Inventions Patentable
Section 7. Inventions patentable. - Any invention of a new and useful machine, manufactured product or
substance, process, or an improvement of any of the foregoing, shall be patentable.
Section 8. Inventions not patentable. - An invention shall not be patentable if it is contrary to public order or
morals, or to public health or welfare, or if it constitutes a mere idea, scientific principle or abstract theorem not
embodied in an invention as specified in section seven hereof, or any process not directed to the making or
improving of a commercial product.

Section 9. Invention not considered new or patentable. - An invention shall not be considered new or capable
of being patented if it was known or used by others in the Philippines before the invention thereof by the
inventor named in an application for patent for the invention; or if it was patented or described in any printed
publication in the Philippines or any foreign country more than one year before the application for a patent
therefor; or if it had been in public use or on sale in the Philippines for more than one year before the application
for a patent therefor; or if it is the subject matter of a validly issued patent in the Philippines granted on an
application filed before the filing of the application for patent therefor.
CHAPTER III - Application for Patent
Section 10. Right to patent. - The right to the patent belongs to the true and actual inventor, his heirs, legal
representatives or assigns. If two or more persons have an invention jointly, the right to the patent belongs to
them jointly. If two or more persons have made the invention separately and independently of each other, the
right to the patent shall belong to the person who is the first to file an application for such invention, unless the
contrary is shown.
Section 11. Applications by non-residents. - Any person filing an application for patent who is not a resident of
the Philippines must appoint an agent or representative in the Philippines upon whom notice or process relating
to the application for patent may be served. In the event of death, absence or inability of the agent or
representative, a new agent or representative must be appointed and notice thereof must be filed in the Office.
Upon failure to maintain an agent or representative of record in this Office, service on the Director shall be
deemed sufficient.
Section 12. Who may apply for patent. - An application for patent may be filed only by the inventor, his heirs,
legal representatives or assigns.
Section 13. The application. - The application for patent shall be in English or Spanish, or in the national
language with its corresponding English translation, and signed by the applicant, and shall include a statement
giving the name, address, and citizenship or nationality of the applicant and of the inventor, if the applicant is
not the inventor, and:
(a) A specification;
(b) Drawings, where the invention can be shown by drawings;
(c) Power of attorney if the filing is through an attorney;
(d) The assignment or a certified copy of the assignment of the invention for recording, where the
application is filed by one who derives his title from the inventor, or proof of title if the derivation is
not by assignment;
(e) A sworn statement by the inventor of his inventorship; or such sworn statement may be made by his
heirs or legal representatives in case of death or incapacity of the inventor; however, such sworn
statement will not be required if a certified copy of a previously filed foreign application containing the
same is filed;
(f) The appointment of a resident agent or representative in cases coming under section eleven hereof;
and
(g) The required fee.
Section 14. The specification. - The specification shall include:
(a) The title of the invention;
(b) A brief statement of its nature and purpose;

(c) A brief explanation of the drawings, where there are drawings;


(d) A complete and detailed description of the invention in such full, clear, concise and exact terms as
to enable any person skilled in the art or science to which the invention relates to make and practice the
invention; and
(e) A distinct and explicit claim or claims of the subject matter which the applicant claims as new and
seeks to have patented.
Section 15. Applications previously filed abroad. - An application for patent for an invention filed in this
country by any person who has previously regularly filed an application for a patent for the same invention in a
foreign country which, by treaty, convention, or law, affords similar privileges to citizens of the Philippines shall
have the same force and effect as the same applicant would have if filed in this country on the date on which the
application for patent for the same invention was first filed in such foreign country: Provided, That the
application in this country is filed within twelve months from the earliest date on which any such foreign
application was filed, and a certified copy of the foreign application together with a translation thereof into
English, if not in the English language, is filed within six months from the date of filing in the Philippines,
unless the Director for good cause shown shall extend the time for filing such certified copy.
CHAPTER IV - Issuance of Patent
Section 16. Formal examination of the application. - When an application for patent has been filed the
Director shall determine whether it complies with the formal requirements. If the application is defective in this
respect the applicant shall be notified on the specific defects and a time fixed, not less than four months, within
which such defects may be remedied.
If the applicant fails to request reconsideration or to remedy the defects within the time fixed by the Director, or
within such additional time, not exceeding four months, as may be granted, the application shall be denied.
Section 17. Multiple inventions in one application. - If several independent inventions which are not so closely
related as to be proper in one application are claimed, the Director may require the application to be restricted to
a single invention in the same manner as notifications of defects in the application. A later application filed for
an invention divided out shall be considered as having been filed on the same day as the first application
provided the later application is filed within four months after the requirement to divide becomes final, or within
such additional time, not exceeding four months, as may be granted.
Section 18. Issuance of patent. - If the original or corrected application is in order, the Director shall issue the
patent and shall, as soon as practicable, make the publication required by section six, Chapter I hereof.
Section 19. How issued. - The patent shall be issued in the name of the Republic of the Philippines under the
seal of the Office and shall be signed by the Director, and registered together with the specification and
drawings, if any, in books and records of the Office to be kept for the purpose.
Section 20. Content of patent. - The patent shall contain the patent number, the title of the invention, the name
and residence of the inventor and of the patentee if the patentee be other than the inventor, the date on which the
application was filed, the date on which it is issued, and a grant to the patentee, his heirs or assigns, of the
exclusive right to the invention throughout the Republic of the Philippines for the term thereof. A copy of the
specification and drawings shall be annexed to the patent and be a part thereof.
CHAPTER V - Term of Patent
Section 21. Term of patent. - The term of a patent shall begin on the date when the patent is issued as shown on
the face thereof and shall expire seventeen years thereafter. However, a patent shall cease to be in force and
effect of the patentee fails to pay the prescribed annual fees within the prescribed times hereinafter provided or
if the patent is cancelled in accordance with the provisions of this Act.

Section 22. Annual fees. - The first annual fee on a patent shall be due and payable on the expiration of four
years from the date of issue. In a similar manner, annual fees on subsisting patents shall be due and payable on
the fifth and each subsequent anniversary of the date of issue. If any annual fee is not paid within the prescribed
time, a notice of the non-payment shall be published in the Official Gazette and the patentee shall have six
months from the date of the publication to pay the fee together with the surcharge required for the delayed
payment. A notice of the lapsing of a patent for non-payment of any annual fee shall be published in the Official
Gazette.
Section 23. Reinstatement of a lapsed patent. - Within two years from the date on which the first unpaid annual
fee was due, a patent which has lapsed for non-payment of any annual fee may be reinstated upon payment of
all annual fees then due and the surcharge for reinstatement, and upon proof satisfactory to the Director that
such non-payment was due to fraud, accident, mistake or excusable negligence: Provided, however, That such
reinstatement shall not prejudice the rights acquired by a third person while the patent was not in force.
CHAPTER VI - Surrender, Correction and Amendments of Patent
Section 24. Surrender of patent. - Any patentee, with the consent of all persons having grants or licenses or
other right, title or interest in and to the patent and the invention covered thereby, which have been recorded in
the Office, may surrender his patent or any claim or claims forming part thereof to the Director for cancellation.
Section 25. Correction of mistakes of Office. - The Director shall have the power to correct without fee any
mistake in a patent incurred through the fault of the Office when clearly disclosed by the records thereof, to
make the patent conform to the records.
Section 26. Correction of mistake of application. - On payment of the prescribed fee the Director is authorized
to correct any mistake in a patent of a formal or clerical nature, not incurred through the fault of the Office.
Section 27. Form and publication of amendment. - Amendment or correction of a patent as provided in
sections twenty-five and twenty-six hereof, shall be accomplished by a certificate of such amendment or
correction authenticated by the seal of the Office and signed by the Director, which certificate shall be attached
to the patent if the patent has been returned to the Director. Notice of such amendment or correction shall be
published in the Official Gazette, and copies of the patent furnished by the Office shall include a copy of the
certificate of the amendment or correction.
CHAPTER VII - Cancellation of Patents
Section 28. General grounds for cancellation. - Any person may on payment of the required fee petition the
Director within three years from the date of publication of the issue of the patent in the Official Gazette, to
cancel the patent or any claim thereof, on any of the following grounds:
(a) That the invention is not new or patentable in accordance with sections seven, eight and nine,
Chapter II hereof;
(b) That the specification does not comply with the requirement of section fourteen, Chapter III hereof;
or
(c) That the person to whom the patent was issued was not the true and actual inventor or did not derive
his rights from the true and actual inventor.
Section 29. When patent may be cancelled at any time. - A petition to cancel a patent on any of the grounds
specified in the next preceding section may be filed at any time by the Solicitor General.
Section 30. Requirements of the petition. - The petition for cancellation must be in writing and verified by the
petitioner or by any person on his behalf who knows the facts, and shall specify the grounds upon which it is
based, and include a statement of the facts to be relied upon. Copies of printed publications or of patents of other
countries, or other supporting documents mentioned in the petition shall be filed therewith, together with the
transaction thereof into English, if not in the English language.

Section 31. Notice and hearing. - Upon the filing of a petition for cancellation, the Director shall forthwith
serve notice of the filing thereof upon the patentee and all persons having grants or licenses, or any other right,
title or interest in and to the patent and the invention covered thereby, as appears of record in the Office, and of
notice of the date of hearing thereon on such persons and the petitioner. Notice of the filing of the petition shall
be published in the Official Gazette.
Section 32. Cancellation of the patent. - If the Director finds that a case for cancellation has been made out he
shall order the patent or any specified claim or claims thereof cancelled. The order shall not become effective
until the time for appeal has elapsed or, if appeal is taken, until the judgment on appeal becomes final. When the
order or judgment becomes final, any rights conferred upon the patentee by the patent or any specified claim or
claims cancelled thereby shall terminate. Notice of cancellation shall be published in the Official Gazette.
Section 33. Cancellation for fraud on the inventor. - In the case of the ground specified in paragraph (c),
section twenty-eight hereof, if the petition for cancellation is made by or on behalf of the true and actual
inventor from whom the patentee fraudulently derived the invention and is successful on this ground, a patent
may be obtained by such inventor, if he does not have a patent, notwithstanding any knowledge or use or
publication of the patent cancelled: Provided, That the true and actual inventor shall file an application for
patent for such invention within six months after the order of cancellation has become final. The term of such
patent, however, shall expire seventeen years from the date of issue of the patent cancelled.
CHAPTER VIII - Compulsory Licensing
Section 34. Grounds for compulsory license. - Any person may apply to the Director for the grant of a license
under a particular patent at any time after the expiration of three years from the date of the grant of the patent,
under any of the following circumstances:
(a) If the patented invention is not being worked within the Philippines on a commercial scale, although
capable of being so worked, without satisfactory reason;
(b) If the demand for the patented article in the Philippines is not being met to an adequate extent and
on reasonable terms, without satisfactory reason;
(c) If by reason of the refusal of the patentee to grant a license or licenses on reasonable terms, or by
reason of the conditions attached by the patentee to licenses or to the purchase, lease or use of the
patented article or working of the patented process or machine of production the establishment of any
new trade or industry in the Philippines is prevented, or the trade of industry therein is unduly
restrained; or
(d) If the patented invention relates to food or medicine or is necessary for public health or public
safety.
The term "worked" or "working" as used in this section means the manufacture and sale of a patented article, or
the carrying on of a patented process or the use of a patented machine for production, in or by means of a
definite and substantial establishment or organization in the Philippines and on a scale which is adequate and
reasonable under the circumstances.
Section 35. Notice and hearing. - Upon the filing of a petition under section thirty-four hereof, notice shall be
given in the same manner and form as that provided in section thirty-one, Chapter VII hereof.
Section 36. Grant of license. - If the Director finds that a case for the grant of a license under section thirty-four
hereof has been made out, he may order the grant of an appropriate license and in default of agreement among
the parties as to the terms and conditions of the license he shall fix the terms and conditions of the license in the
order.
The order of the Director granting a license under this Chapter, when final, shall operate as a deed granting a
license executed by the patentee and the other parties in interest.

CHAPTER IX - Rights of Patentees and Infringement of Patents


Section 37. Rights of patentees. - A patentee shall have the exclusive right to make, use and sell the patented
machine, article or product, and to use the patented process for the purpose of industry or commerce, throughout
the territory of the Philippines for the term of the patent; and such making, using, or selling by any person
without the authorization of the patentee constitutes infringement of the patent.
Section 38. Experimental use of invention. - The making or using of a patented invention when not conducted
for profit and solely for the purpose of research or experiment, or for instruction, shall not constitute
infringement.
Section 39. Temporary presence in the country. - No patent shall prevent the use of any invention in any ship,
vessel, aircraft, or land vehicle of any other country entering the territory of the Philippines temporarily or
accidentally, and such use shall not constitute infringement of the patent, provided such invention is used
exclusively for the needs of the ship, vessel, aircraft, or land vehicle and not used for the manufacture of
anything to be sold within or exported from the Philippines.
Section 40. Rights of third parties prior to application. - Any person who has purchased or acquired of the
inventor, his legal representatives, or assigns, or who, with their knowledge and consent, constructs any newly
invented device or other patentable article, prior to the filing of the application therefor, shall have the right to
use and sell the specific thing purchased, acquired or made, without liability therefor.
Section 41. Use of invention by the Government. - The Government of the Philippines may use any patented
invention at any time for governmental purposes, and the manufacture or use of the invention by or for the
Government for such purposes shall not constitute infringement of the patent, but the patentee shall be entitled
to receive a reasonable compensation for the use of the invention.
CHAPTER X - Actions and Remedies for Infringement
Section 42. Civil action for infringement. - Any patentee, or anyone possessing any right, title or interest in and
to the patented invention, whose rights have been infringed, may bring a civil action before the proper Court of
First Instance, to recover from the infringer damages sustained by reason of the infringement and to secure an
injunction for the protection of his rights.
If the damages are inadequate or cannot be readily ascertained with reasonable certainty, the court may award as
damages a sum amounting to a reasonable royalty.
The court may, according to the circumstances of the case, award damages in a sum above the amount found as
actual damages sustained provided the award does not exceed three times the amount of such actual damages.
Section 43. Limitation of action for damages. - No damages can be recovered for acts of infringement
committed more than four years before the institution of the action for infringement.
Section 44. Damages not recoverable for want of notice or marking. - Damages cannot be recovered for acts
of infringement committed before the infringer had actual notice of the patent, unless the patentee or those
exploiting the invention on his behalf or under his authorization have given notice to the public that the
machine, device, articles or process is patented either by placing thereon the words "Philippines Patent" with the
number of the patent, or when from the nature of the article this cannot reasonably be done, by placing such
notice on the package or container in which the device or article is supplied to the public, or is descriptive or
advertising matter used in connection with the patented machine, device, article or process.
Section 45. Defenses in action for infringement. - In an action for infringement the defendant, in addition to
other defenses available to him, may show the invalidity of the patent or any claim thereof on any of the
grounds on which a petition of cancellation can be brought under section twenty-eight, Chapter VII hereof.

Section 46. Patent found invalid to be cancelled. - If the court shall find the patent or any claim thereof invalid,
the Director shall, on certification of the final judgment to the Office, issue an order cancelling the patent or the
claims found invalid, and shall publish a notice thereof in the Official Gazette.
Section 47. Assessors in infringement action. - Two or more assessors may be appointed by the court. The
assessors shall be so qualified by the necessary scientific and technical knowledge required by the subject matter
in suit. Either party may, as a preliminary question, challenge the fitness of any assessor to sit in an action.
Each assessor shall receive a compensation in an amount to be fixed by the court and advanced by the
complaining party, and thereafter to be taxed as costs in favor of the prevailing party.
Section 48. Criminal action for repetition of infringement. - If infringement is repeated by the infringer or by
anyone in connivance with him after final judgment of the court against the infringer, the parties liable shall,
without prejudice to further civil action, be punished by a fine not exceeding ten thousand pesos and
imprisonment not exceeding five years, or both such fine and imprisonment in the discretion of the court, in a
criminal action instituted for the purpose. The criminal action herein provided shall prescribed in two years.
Section 49. Appeal. - Appeal may be taken from the judgment of the court in the civil and criminal actions
herein provided in the same manner as in other actions.
CHAPTER XI - Assignment and Transmission of Rights
Section 50. Transmission of rights. - Patents and the inventions covered thereby shall be protected as and have
the applicable rights of other property. Inventions and any rights, title or interest in and to patents and inventions
covered thereby may be assigned, or transmitted by inheritance or bequest.
Section 51. Assignment of inventions. - An assignment may be on the entire right, title or interest in and to the
patent and the invention covered thereby, or of an undivided share of the entire patent and invention in which
event the parties become joint owners thereof. An assignment may be limited to a specified territory.
Section 52. Form of assignment. - The assignment must be in writing, acknowledged before a notary public or
other officer authorized to administer oaths or perform notarial acts and certified under the hand and official seal
of the notary or other officer.
Section 53. Recording. - The Director shall record assignment, licenses and other instruments relating to any
right, title or interest in and to inventions, and patents or inventions covered thereby, which are presented in due
form to the Office for registration, in books and records kept for the purpose. The original document together
with a signed duplicate thereof shall be filed, but if the original is not available, an authenticated copy thereof in
duplicate may be filed. Upon recording, the Director shall retain the duplicate, and return the original or the
authenticated copy to the party filing with a notation of the fact of record. Notice of the recording shall be
published in the Official Gazette.
Such instruments shall be void as against any subsequent purchaser or mortgagee for a valuable consideration
and without notice unless it is recorded in the Office within three months from the date thereof, or prior to the
subsequent purchase or mortgage.
Section 54. Rights of joint owners. - If two or more persons jointly own a patent and the invention covered
thereby either by the issuing of the patent to them jointly or by reason of the assignment of an undivided share
in the patent and invention or by reason of the succession in title to such share, each of the joint owners, shall be
entitled to personally make, use, or sell the invention for his own profit, subject to any contract or agreement,
but neither of the owners shall be entitled to grant licenses or to assign his right, title or interest or part thereof
without the consent of the other owner or owners, or without proportionately dividing the proceeds with the
other owner or owners.
CHAPTER XII - Designs

Section 55. Industrial designs. - Any new and original creation relating to the features of shape, pattern,
configuration, ornamental, or artistic appearance of an article or industrial product may be protected as an
industrial design by the author in the same manner and subject to the same provisions and requirements as relate
to patents for inventions insofar as they are applicable, except as otherwise hereinafter provided.
Section 56. Six months publication. - The period of one year specified in section nine, Chapter II, and section
fifteen, Chapter III, hereof, for inventions shall be six months in the case of designs.
Section 57. Notice of registration shall be published. - Notice of the registration of the design shall be
published in the Official Gazette.
Section 58. Term and extension thereof . - The term of the design registration shall be five years from the date
of registration.
Before the expiration of the five-year term upon payment of the required fee, or within a further time thereafter
not to exceed six months upon payment of the surcharge, the owner of the registration may apply for an
extension for an additional five years. The application for extension must be accompanied by an affidavit
showing that the design is in commercial or industrial use in the Philippines or satisfactorily explaining non-use.
In a similar manner an extension for a third five-year period may be obtained.
Section 59. Marking. - The marking required by section forty-four, Chapter X, hereof, shall be "Philippines
Design Registration," or appropriate abbreviation, and the number of the registration.
Section 60. Infringement. - Infringement of a design registration shall consist in unauthorized copying of the
registered design for the purpose of trade or industry in the article or product and in the making, using or selling
of the article or product copying the registered design. Identity or substantial identity with the registered design
shall constitute evidence of copying.
CHAPTER XIII - Review of Orders or Decisions of Director
Section 61. Appeal from the action of Director. - The applicant for a patent or for the registration of a design,
any party to a proceeding to cancel a patent or to obtain a compulsory license, and any party to any other
proceeding in the Office may appeal to the Supreme Court from any final order or decision of the Director.
Section 62. Stay. - A petition for review of any order or decision of the Director rejecting in whole or in part an
application for a patent or registration of a design, shall not stay any order or decision of the Director in respect
of any other applications then pending for a patent or design registration; but the Director shall proceed to act on
such other applications without regard to such petition unless the Supreme Court shall otherwise direct.
Section 63. How appeal is perfected. - An appeal from an order or decision of the Director shall be perfected by
filing with the Director a notice of appeal and the payment of the required appeal fee and filing with the
Supreme Court a petition for review, within thirty days from notice of the order or decision appealed from.
Section 64. Contents and notice of petition. - The petition shall contain a summary statement of the issues
involved and the reasons relied upon for allowance of a review. Copies of the petition shall be served upon the
Director and all other parties in interest.
Section 65. Docketing fee and deposits for costs. - Upon filing the petition for review, the petitioner shall pay to
the clerk of the Supreme Court the docketing fee and shall deposit the sum of one hundred pesos for costs.
Section 66. Elevation of copy of record. - Upon the filing of the petition, notice thereof shall be served by the
clerk of the Supreme Court upon the Director, who, within thirty days thereafter, shall certify and forward to the
Supreme Court a copy of the record as the same appears in this Office.
Section 67. Answer of respondent. - Upon receipt of the record, the clerk of the Supreme Court shall serve
notice upon the Director and all other parties in interest, requiring them to answer within ten days from service.
Copies of such answer shall served upon the petitioner.

Section 68. Power of court. - The Supreme Court may, on petition filed within five days after the filing of the
answer, allow the parties to adduce additional evidence material to the matter at issue, which shall constitute a
supplementary record to be considered in connection with the record on appeal.
Section 69. Representation by Solicitor General. - In all appeals from an order or decision of the Director the
Solicitor General shall appeal on behalf of the Director.
Section 70. Briefs on appeal. - Upon receipt of the answer to the petition or upon conclusion of the presentation
of additional evidence, the clerk of the Supreme Court shall notify the parties, and the petitioner, within thirty
days from such notice, shall file twenty copies of his brief upon the adverse parties and, within thirty days from
such service, the adverse parties shall file twenty copies of their brief together with proof of service of five
copies thereof upon the petitioner.
Section 71. Inclusion in calendar. - Upon the filing of the respondent's brief, or after the expiration of the time
for its filing, the case shall be included in the regular calendar, unless the court advances the hearing for special
cause shown.
Section 72. Oral argument, its duration. - Each party is entitled to one hour for oral argument, extendible in the
discretion of the court.
Section 73. Rules of Court applicable. - In all other matters not herein provided, the applicable provisions of
the Rules of Court shall govern.
CHAPTER XIV - Penalty for False Marking
Section 74. Penalty for false marking. - Any person who falsely represents or indicates that any device, article
or product made or sold by him is patented, or is the subject of a registered design, by making or having on the
device, article or product, or on their containers or packages, or using in advertising or displays used in
connection with them, or with any process, words expressing or implying that the device, article, product or
process is patented or registered, shall be subject to a fine of not less than one hundred pesos nor more than one
thousand pesos, or imprisonment for not less than one month nor more than one year, or both, in the discretion
of the court. Actions hereunder shall prescribe in two years.
Section 75. Fees. - The following fees shall be paid:
For filing an application for patent, which shall include the cost of publication in the Official Gazette,
two hundred pesos;
For annual fees due at the beginning of the fifth and each succeeding year, one hundred pesos each
year;
For surcharge for delayed payment of an annual fee, twenty-five pesos;
For reinstating lapsed patent, one hundred pesos;
For filing a petition for cancellation, except when filed by the Solicitor General, fifty pesos;
For filing a petition for a compulsory license, one hundred pesos;
For copies of records of the Office, two pesos per photostat sheet, one peso per hundred words of
typewritten copy;
For each certification of copy of any records, ten pesos;
For recording assignments, and other documents relating to title, and license, ten pesos;

For notice of appeal from the order or decision of the Director; twenty-five pesos;
For filing application for registration of a design, fifty pesos;
For renewing design registration, fifty pesos;
For surcharge for delayed renewal of design registration, twenty pesos; and
For services not otherwise specified, the Director shall provide, by regulation, the fees therefor.
CHAPTER XVI - Miscellaneous
Section 76. Certain priority for filing application extended. - The rights of priority provided by section nine,
Chapter II; section fifteen, Chapter III; and section fifty-six, Chapter XII hereof for the filing of applications for
patent for inventions and designs, which rights had not expired on the eighth day of December, nineteen
hundred and forty-one, or which rights have arisen since the eighth day of December, nineteen hundred and
forty-one, are extended until the first day of July, nineteen hundred and forty-eight, in favor of the citizens of the
Philippines or citizens or subjects of countries which have extended, or which now extend, or which within said
period ending the first day of July, nineteen hundred and forty-eight, shall extend substantially reciprocal
privileges to citizens of the Philippines.
Section 77. Disqualification of officers and employees from acquiring patents and design registrations. - All
officers and employees of the Office shall not, during their employment or for one year thereafter, apply for a
grant of patent or for the registration of a design, or acquire, directly or indirectly, except by hereditary
succession, any patent of invention or design registration, or any right, title or interest therein.
Section 78. Rules and regulations. - The Director subject to the approval of the Secretary of Justice, shall
promulgate the necessary rules and regulations, not inconsistent with law, for the conduct of all business in the
Patent Office.
Section 79. Records to be public. - The records of the Office shall be open to public inspection, and any person
may obtain an authenticated copy thereof on payment of the prescribed fees.
Section 80. Repealing clause. - Acts Numbered Twenty-two hundred and thirty-five, Twenty-seven hundred and
ninety-three, as amended, and all other acts, or parts of acts, inconsistent herewith, are hereby repealed.
Section 81. Reservation of prior rights. - Any rights acquired under laws existing prior to the taking effect of
this Act are hereby respected and preserved.
Section 82. Appropriation. - The sum of seventy-five thousand pesos, or so much thereof as may be necessary,
is hereby appropriated out of any funds in the National Treasury not otherwise appropriated, for the initial
expenses of the Office, including organization expenses, salaries, supplies, equipment, and other sundry
expenses until June thirtieth, nineteen hundred and forty-eight.
Section 83. Effective date. - This Act shall take effect on its approval.
Approved: June 20, 1947

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RA 166 June 20, 1947


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
CHAPTER I - Powers, Duties and Functions of Patent Office
Section 1. Transfer of powers from Bureau of Commerce to Patent Office. - The powers, duties and functions
vested in, or performed and exercised by, the Bureau of Commerce in connection with the registration of trademarks, trade-names and other marks are hereby transferred to the Patent Office. The administration of this Act
shall devolve upon the Patent Office.
All books, records, documents and files of the Bureau of Commerce relating to trade-marks, trade-names and
other marks, and such personnel of the said Bureau as is now discharging the functions or performing the duties
of the Bureau of Commerce in connection with the registration of trade-marks, trade-names and other marks
together with the corresponding appropriation, are transferred to the Patent Office, and the Budget
Commissioner shall make immediate provision for such transfer.
CHAPTER II - Registration of Marks and Trade-Names
Section 2. What are registrable. - Trade-marks, trade-names and service-marks may be registered in accordance
with the provisions of this Act.
Section 3. Application by non-residents. - Any person filing an application for the registration of a mark or
trade-name, who is not a resident of the Philippines, must appoint an agent or representative in the Philippines
upon whom notice or process relating to the application or registration of the mark or trade-name may be served.
In the event of death, absence or inability of the agent or representative, a new agent or representative must be
appointed, and notice thereof must be filed in the Patent Office. Upon failure to maintain an agent or
representative of record in the Patent Office, service on the Director shall be deemed sufficient.
Section 4. Registration of trade-marks, trade-names and service-marks. - The owner of a trade-mark, tradename or service-mark used to distinguish his goods, business or services from the goods, business or services of
others shall have the right to register the same, unless it:
(a) Consists of or comprises immoral, deceptive or scandalous matter; or matter which may disparage
or falsely suggest a connection with persons, living or dead, institutions, beliefs, or national symbols,
or bring them into contempt or disrepute;
(b) Consists of or comprises the flag or coat of arms or other insignia of the Philippines or any of its
political subdivisions, or of any foreign nation, or any simulation thereof;
(c) Consists of or comprises a name, portrait, or signature identifying a particular living individual
except by his written consent, or the name, signature, or portrait of a deceased President of the
Philippines, during the life of his widow, if any, except by the written consent of the widow;
(d) Consists of or comprises a mark or trade-name which so resembles a mark or trade-name registered
in the Philippines or a mark or trade-name previously used in the Philippines by another and not
abandoned, as to be likely, when applied to or used in connection with the goods, business or services
of the applicant, to cause confusion or mistake or to deceive purchases; or

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(e) Consists of a mark or trade-name which, when applied to or used in connection with the goods,
business or services of the applicant is merely descriptive or deceptively misdescriptive of them, or
when applied to or used in connection with the goods, business or services of the applicant is primarily
geographically descriptive or deceptively misdescriptive of them, or is primarily merely a surname.
(f) Except as expressly excluded in paragraphs (a), (b), (c) and (d) of this section, nothing herein shall
prevent the registration of a mark or trade-name used by the applicant which has become distinctive of
the applicant's goods, business or services. The Director may accept as prima facie evidence that the
mark or trade-name has become distinctive, as applied to or used in connection with the applicant's
goods, business or services, proof of substantially exclusive and continuous use thereof as a mark or
trade-name by the applicant in connection with the sale of goods, business or services for the five years
next preceding the date of the filing of the application for its registration.
Section 5. Requirements of the application. - The application for the registration of a mark or trade-name shall
be in English or Spanish, or in the national language, with its corresponding English translation, and signed by
the applicant, and shall include:
(a) Sworn statement of the applicant's domicile and citizenship, the date of the applicant's first use of
the mark or trade-name, the date of the applicant's first use of the mark or trade-name in commerce or
business, the goods, business or services in connection with which the mark or trade-name is used and
the mode or manner in which the mark is used in connection with such goods, business or services, and
that the person making the application believes himself, or the firm, corporation or association on
whose behalf he makes the verification, to be the owner of the mark or trade-name sought to be
registered, that the mark or trade-name is in use in commerce or business, and that to the best of his
knowledge no person, firm, corporation or association has the right to use such mark or trade-name in
commerce or business either in the identical form thereof or in such near resemblance thereto as might
be calculated to deceive;
(b) Such number of specimens or facsimiles of the mark or trade-name as actually used as may be
required by the Director;
(c) Power of attorney, if the filing is through attorney;
(d) The appointment of an agent or representative, if the applicant is not domiciled in the Philippines;
and
(e) The required fee.
Section 6. Classification of goods and services. - The Director shall establish a classification of goods and
services, for the convenience of the Patent Office administration, but not to limit or extent the applicant's rights.
The applicant may register his mark or trade-name in one application for any of all the goods or services
included in one class, upon or in connection with which he is actually using the mark or trade-name. The
Director may issue a single certificate for one mark or trade-name registered in a plurality of classes upon
payment of a fee equaling the sum of the fees for each registration in each class.
Section 7. Examination and publication. - Upon the filing of an application for registration and the payment of
the required fee, the Director shall cause an examination of the application to be made, and, if on such
examination it shall appear that the applicant is entitled to registration, the Director, upon payment of the
required fee, shall cause the mark or trade-name to be published in the Official Gazette.
If the applicant is found not entitled to registration, the Director shall advise the applicant thereof and of the
reasons therefor. The applicant shall have a period of three months in which to reply or amend his application,
which shall then be re-examined. This procedure may be repeated until the Director finally refuses registration
or the applicant fails within the required period to reply or amend or appeal, whereupon the application shall be
deemed to have been abandoned, unless it can be shown to the satisfaction of the Director that the delay in

12

responding was unavoidable, in which event such time may be extended in the discretion of the Director. An
abandoned application may be revived as a pending application within three months from the date of
abandonment, upon good cause shown and the payment of the required fee.
Section 8. Opposition. - Any person who believes that he would be damaged by the registration of a mark or
trade-name may, upon payment of the required fee and within thirty days after the publication under the first
paragraph of section seven hereof, file with the Director as opposition to the application. Such opposition shall
be in writing and verified by the oppositor, or by any person on his behalf who knows the facts, and shall
specify the grounds on which it is based and include a statement of the facts relied upon. Copies of certificates
of registration of marks or trade-names registered in other countries or other supporting documents mentioned in
the opposition shall be filed therewith, together with the translation thereof into English, if not in the English
language. For good cause shown and upon payment of the required surcharge, the time for filing an opposition
may be extended for an additional thirty days by the Director, who shall notify the applicant of such extension.
Section 9. Notice and hearing. - Upon the filing of an opposition, the Director shall forthwith serve notice of
the filing on the applicant, and of the date of the hearing thereof upon the applicant and the oppositor and all
other persons having any right, title or interest in the mark or trade-name covered by the application, as appear
of record in the Patent Office.
Section 10. Issuance and publication of certificates. - When the period for filing the opposition has expired, or
when the Director shall have denied the opposition, the Director, upon payment of the required fee, shall issue
the certificate of registration. Upon issuance of a certificate of registration, notice thereof making reference to
the publication of the application shall be published in the Official Gazette.
Section 11. Issuance and contents of the certificate. - Certificates of registration shall be issued in the name of
the Republic of the Philippines under the seal of the Patent Office, and shall be signed by the Director, and a
record thereof together with a copy of the specimen or facsimile and the statement of the applicant, shall be kept
in books for that purpose. The certificate shall reproduce the specimen or facsimile of the mark or trade-name,
contain the statement of the applicant and state that the mark or trade-name is registered under this Act, the date
of the first use, the date of the first use in commerce or business, the particular goods or services for which it is
registered, the number and date of the registration, the term thereof, the date on which the application for
registration was received in the Patent Office, a statement of the requirement that in order to maintain the
registration, periodical affidavits of use within the specified times hereinafter in section twelve provided, shall
be filed, and such other data as the rules and regulations may from time to time prescribe.
Section 12. Duration. - Each certificate of registration shall remain in force for twenty years: Provided, That
registrations under the provisions of this Act shall be cancelled by the Director, unless within one year following
the fifth, tenth and fifteenth anniversaries of the date of issue of the certificate of registration, the registrant shall
file in the Patent Office an affidavit showing that the mark or trade-name is still in use or showing that its nonuse is due to special circumstances which excuse such non-use and is not due to any intention to abandon the
same, and pay the required fee.
The Director shall notify the registrant who files the above-prescribed affidavits of his acceptance or refusal
thereof and, if a refusal, the reasons therefor.
Section 13. Disclaimers before issue. - The Director shall require unregistrable matter to be disclaimed, but
such disclaimer shall not prejudice or affect the applicant's or owner's rights then existing or thereafter arising in
the disclaimed matter, nor shall such disclaimer prejudice or affect the applicant's or owner's rights of
registration on another application of later date if the disclaimed matter has become distinctive of the applicant's
or owner's goods, business or services.
Section 14. Voluntary surrender, cancellation, amendment and disclaimer after registration. - At any time,
upon application of the registrant and payment of the required fee, the Director may permit any registration to
be surrendered, cancelled, or for good cause shown to be amended, he may permit any registered mark or tradename to be disclaimed in whole or in part: Provided, That the registration when so amended shall still contain

13

registrable matter and the mark or trade-name as amended shall still be registrable as a whole, and that such
amendment or disclaimer does not involve such changes in the registration as to alter materially the character of
the mark or trade-name. The Director shall make appropriate entry upon the records of the Patent Office and
upon the certificate of registration or, if said certificate is lost or destroyed, upon a certified copy thereof. The
Director in his discretion and upon payment of the required fee, may issue a substitute certificate limited to the
term of the original certificate and incorporating such amendment or correction.
CHAPTER III - Renewals of Certificate of Registration
Section 15. Renewal. - Each certificate of registration may be renewed for periods of twenty years from the end
of the expiring period upon the filing of an application therefor and the payment of the required fee. Such
application for renewal shall include a sworn statement of the applicant's domicile and citizenship, the specific
goods, business or services in connection with which the mark or trade-name is still in use, the period of any
nonuse in reference to the specific goods, business or services covered by original or renewed certificates of
registration and any rights granted third parties for the use of the mark or trade-name, any additional goods,
business or services to which the mark or trade-name has been extended during the period of the original or
renewed certificates of registration, and any material variation in the manner of display of the mark or tradename from that shown in the original or renewed certificate of registration. The applicant shall file the
application within six months before the expiration of the period for which the certificate of registration was
issued or renewed, or it may be made within three months after such expiration for good cause shown and upon
payment of the required surcharge.
In the event the applicant for renewal be not domiciled in the Philippines, he shall be subject to and comply with
the provisions of paragraph (d), section five, Chapter II hereof.
Section 16. Effect of failure to renew registration. - Mere failure to renew any registration shall not affect the
right of the registrant to apply for and obtain a new registration under the provisions of this Act, nor shall such
failure entitle any other person to register a mark or trade-name unless he is entitled thereto in accordance with
the provisions of this Act.
CHAPTER IV - Cancellation of Registration
Section 17. Grounds for cancellation. - Any person, who believes that he is or will be damaged by the
registration of a mark or trade-name, may, upon the payment of the prescribed fee, apply to cancel said
registration upon any of the following grounds:
(a) That the registered mark or trade-name becomes the common descriptive name of an article or
substance on which the patent has expired;
(b) That it has been abandoned;
(c) That the registration was obtained fraudulently or contrary to the provisions of section four, Chapter
II hereof;
(d) That the registered mark or trade-name has been assigned, and is being used by, or with the
permission of, the assignee so as to misrepresent the source of the goods, business or services in
connection with which the mark or trade-name is used; or
(e) That cancellation is authorized by other provisions of this Act.
Section 18. Requirements of petition; notice and hearing. - Insofar as applicable, the petition herein shall be in
the same form as that provided in section eight, Chapter II hereof, and notice and hearing shall be as provided in
section nine, Chapter II hereof.

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Section 19. Cancellation of registration. - If the Director finds that a case for cancellation has been made out he
shall order the cancellation of the registration. The order shall not become effective until the period for appeal
has elapsed, or if appeal is taken, until the judgment on appeal becomes final. When the order or judgment
becomes final, any right conferred by such registration upon the registrant or any person in interest of record
shall terminate. Notice of cancellation shall be published in the Official Gazette.
CHAPTER V - Rights and Remedies
Section 20. Certificate of registration prima facie evidence of validity. - A certificate of registration of a mark
or trade-name shall be prima facie evidence of the validity of the registration, the registrant's ownership of the
mark or trade-name, and of the registrant's exclusive right to use the same in connection with the goods,
business or services specified in the certificate, subject to any conditions and limitations stated therein.
Section 21. Requirements of notice of registration of trade-mark. - The registrant of a trade-mark, heretofore
registered or registered under the provisions of this Act, shall give notice that his mark is registered by
displaying with the same as used the words "Registered in the Philippines Patent Office" or "Reg. Phil. Pat.
Off."; and in any suit for infringement under this Act by a registrant failing so to mark the goods bearing the
registered trade-mark, no damages shall be recovered under the provisions of this Act unless the defendant has
actual notice of the registration.
Section 22. Infringement, what constitutes. - Any person who shall use, without the consent of the registrant,
any reproduction, counterfeit, copy or colorable imitation of any registered mark or trade-name in connection
with the sale, offering for sale, or advertising of any goods, business or services on or in connection with which
such use is likely to cause confusion or mistake or to deceive purchasers or others as to the source or origin of
such goods or services, or identity of such business; or reproduce, counterfeit, copy or colorably imitate any
such mark or trade-name and apply such reproduction, counterfeit, copy, or colorable imitation to labels, signs,
prints, packages, wrappers, receptacles or advertisements intended to be used upon or in connection with such
goods, business or services, shall be liable to a civil action by the registrant for any or all of the remedies herein
provided.
Section 23. Actions, and damages and injunction for infringement. - Any person entitled to the exclusive use
of a registered mark or trade-name may recover damages in a civil action from any person who infringes his
rights, and the measure of the damages suffered shall be either the reasonable profit which the complaining
party would have made, had the defendant not infringed his said rights, or the profit which the defendant
actually made out of the infringement, or in the event such measure of damages cannot be readily ascertained
with reasonable certainty, then the court may award as damages a reasonable percentage based upon the amount
of gross sales of the defendant of the value of the services in connection with which the mark or trade-name was
used in the infringement of the rights of the complaining party. In cases where actual intent to mislead the public
or to defraud the complaining party shall be shown, in the discretion of the court, the damages may be doubled.
The complaining party, upon proper showing, may also be granted injunction.
Section 24. Power of court to order infringing material destroyed. - In any action arising under this Act, in
which a violation of any right of the registrant shall have been established, the court may order that all labels,
sign, prints, packages, wrappers, receptacles and advertisements in the possession of the defendant, bearing the
registered mark or trade-name or any reproduction, counterfeit, copy or colorable imitation thereof, and all
plates, molds, matrices and other means of making the same, shall be delivered up and destroyed.
Section 25. Authority to determine right to registration. - In any action involving a registered mark or tradename the court may determine the right to registration, order the cancellation of registrations, in whole or in
part, restore cancelled registration, and otherwise rectify the register with respect to the registration of any party
to the action. Judgments and orders shall be certified by the court to the Director, who shall make appropriate
entry upon the records of the Patent Office, and shall be controlled thereby.

15

Section 26. Action for false or fraudulent declaration. - Any person who shall procure registration in the Patent
Office of a mark or trade-name by a false or fraudulent declaration or representation, oral or in writing, or by
any false means, shall be liable in a civil action by any person injured thereby for any damages sustained in
consequence thereof.
Section 27. Jurisdiction of Court of First Instance. - All actions under this Chapter and Chapters VI and VII
hereof shall be brought before the proper Court of First Instance.
Section 28. Appeal. - Appeal may be taken from any judgment or final order of the Court of First Instance in the
same manner as in other actions.
CHAPTER VI - Unfair Competition
Section 29. Unfair competition, rights and remedies. - A person who has identified in the mind of the public
the goods he manufactures or deals in, his business or services from those of others, whether or not a mark or
trade-name is employed, has a property right in the goodwill of the said goods, business or services so
identified, which will be protected in the same manner as other property rights. Such a person shall have the
remedies provided in section twenty-three, Chapter V hereof.
Any person who shall employ deception or any other means contrary to good faith by which he shall pass off the
goods manufactured by him or in which he deals, or his business, or services for those of the one having
established such goodwill, or who shall commit any acts calculated to produce said result, shall be guilty of
unfair competition, and shall be subject to an action therefor.
In particular, and without in any way limiting the scope of unfair competition, the following shall be deemed
guilty of unfair competition:
(a) Any person, who in selling his goods shall give them the general appearance of goods of another
manufacturer or dealer, either as to the goods themselves or in the wrapping of the packages in which
they are contained, or the devices or words thereon, or in any other feature of their appearance, which
would be likely to influence purchasers to believe that the goods offered are those of a manufacturer or
dealer other than the actual manufacturer or dealer, or who otherwise clothes the goods with such
appearance as shall deceive the public and defraud another of his legitimate trade, or any subsequent
vendor of such goods or any agent of any vendor engaged in selling such goods with a like purpose;
(b) Any person who by any artifice, or device, or who employs any other means calculated to induce
the false belief that such person is offering the services of another who has identified such services in
the mind of the public;
(c) Any person who shall make any false statement in the course of trade or who shall commit any
other act contrary to good faith of a nature calculated to discredit the goods, business or services of
another.
CHAPTER VII - False Designation of Origin and False Description
Section 30. False designation of origin and false description forbidden. - Any person who shall affix, apply,
annex or use in connection with any goods or services, or any container or containers for goods, a false
designation of origin, or any false description or representation, including words or other symbols tending
falsely to describe or represent the same, and shall cause such goods or services to enter into commerce, and any
person who shall with knowledge of the falsity of such designation of origin or description or representation
cause or procure the same to enter into commerce, shall be liable to a civil action for damages and injunction
provided in section twenty-three, Chapter V hereof, by any person doing business in the locality falsely
indicated as that of origin or in the region in which said locality is situated, or by any person who believes that
he is or is likely to be damaged by the use of any such false description or representation.

16

CHAPTER VIII - Assignment and Transmission of Rights


Section 31. Rights assignable and form of assignment. - A registered mark or trade-name, or one for which
application to register has been filed shall be assignable with the goodwill of the business in which the mark or
trade-name is used, or with that part of the goodwill of the business connected with the use of and symbolized
by the mark or trade-name, and in any such assignment it shall not be necessary to include the goodwill of the
business connected with the use of and symbolized by any other mark or trade-name used in the business or by
the name or style under which the business is conducted. Upon payment of the required fee, the Director shall
record assignments in due form in books kept for that purpose.
The assignment must be in writing, acknowledged before a notary public or other officer authorized to
administer oaths or perform other notarial acts and certified under the hand and official seal of the notary or
other officer.
An assignment shall be void as against any subsequent purchaser for a valuable consideration without notice,
unless it is recorded in the Patent Office within three months after the date thereof or prior to such subsequent
purchase.
Section 32. Issuance of certificate of registration to assignee. - A certificate of registration of a mark or tradename may be issued to the assignee of the applicant, but the assignment must first be recorded in the Patent
Office. In case of change of ownership the Director shall, at the request of the owner and upon proper showing
and payment of the required fee, issue to such assignee a new certificate of registration of the said mark or tradename in the name of such assignee, and for the unexpired part of the original period.
CHAPTER IX - Review of Orders or Decisions of Director
Section 33. Appeal from action of Director. - Any party who has been denied registration of a mark or tradename, or to the renewal of the registration, or to any cancellation proceeding in the Patent Office, may appeal to
the Supreme Court from the final order or decision of the Director.
Section 34. Procedure on appeal. - Sections sixty-three to seventy-three, inclusive, Chapter VIII, of Republic
Act No. _____ entitled "An Act creating a Patent Office, prescribing its powers and duties, regulating the
issuance of patents, and appropriating funds therefor," shall be applicable to the appeals herein provided.
CHAPTER X - Importations Prohibited
Section 35. Goods bearing infringing marks or trade-names. - No article of imported merchandise which shall
copy or simulate the name of any domestic product, or manufacturer, or dealer, or of any manufacturer or dealer
located in any foreign country which, by treaty, convention or law affords similar privileges to citizens of the
Philippines, or which shall copy or simulate a mark or trade-name registered in accordance with the provisions
of this Act, or shall bear a mark or trade-name calculated to induce the public to believe that the article is
manufactured in the Philippines, or that it is manufactured in any foreign country or locality other than the
country or locality where it is in fact manufactured, shall be admitted to entry at any customhouse of the
Philippines. In order to aid the officers of the customs service in enforcing this prohibition, any person who is
entitled to the benefits of this Act, may require his name and residence, and the name of the locality in which his
goods are manufactured, a copy of the certificate of registration of his mark or trade-name to be recorded in
books which shall be kept for this purpose in the Bureau of Customs, under such regulations as the Collector of
Customs with the approval of the Secretary of Finance shall prescribe, and may furnish to the said Bureau
facsimiles of his name, the name of the locality in which his goods are manufactured, or of his registered mark
or trade-name, and thereupon the Collector of Customs shall cause one or more copies of the same to be
transmitted to each collector or other proper officer of the Bureau of Customs.
Section 36. Goods with false designation of origin and false description. - Any goods marked or labeled in
contravention of the provisions of section thirty, Chapter VII hereof, shall not be imported into the Philippines
or admitted to entry at any customhouse in the Philippines.

17

CHAPTER XI - Provisions in Reference to Foreign Industrial Property


Section 37. Rights of foreign registrants. - Persons who are nationals of, domiciled in, or have a bona fide or
effective business or commercial establishment in any foreign country, which is a party to any international
convention or treaty relating to marks or trade-names, or the repression of unfair competition to which the
Philippines may be a party, shall be entitled to the benefits and subject to the provisions of this Act to the extent
and under the conditions essential to give effect to any such convention and treaties so long as the Philippines
shall continue to be a party thereto, except as provided in the following paragraphs of this section.
No registration of a mark or trade-name in the Philippines by a person described in the preceding paragraph of
this section shall be granted until such mark or trade-name has been registered in the country of origin of the
applicant, unless the applicant alleges use in commerce.
For the purposes of this section, the country of origin of the applicant is the country in which he has bona fide
and effective industrial or commercial establishment, or if he has not such an establishment in the country in
which he is domiciled, or if he has not a domicile in any of the countries described in the first paragraph of this
section, the country of which he is a national.
An application for registration of a mark or trade-name under the provisions of this Act filed by a person
described in the first paragraph of this section who has previously duly filed an application for registration of the
same mark or trade-name in one of the countries described in said paragraph shall be accorded the same force
and effect as would be accorded to the same application if filed in the Philippines on the same date on which the
application was first filed in such foreign country: Provided, That (a) The application in the Philippines is filed within six months from the date on which the applicant
was first filed in the foreign country; and within three months from the date of filing or within such
time as the Director shall in his discretion grant, the applicant shall furnish a certified copy of the
application for or registration in the country of origin of the applicant, together with a translation
thereof into English, if not in the English language;
(b) The application conforms as nearly as practicable to the requirements of this Act, but use in
commerce need not be alleged;
(c) The rights acquired by third parties before the date of the filing of the first application in the foreign
country shall in no way be affected by a registration obtained on an application filed under this
paragraph; and
(d) Nothing in this paragraph shall entitle the owner of a registration granted under this section to sue
for acts committed prior to the date on which his mark or trade-name was registered in this country
unless the registration is based on use in commerce.
The registration of a mark under the provisions of this section shall be independent of the registration in the
country of origin and the duration, validity or transfer in the Philippines of such registration shall be governed
by the provisions of this Act.
Trade-names of persons described in the first paragraph of this section shall be protected without the obligation
of filing or registration whether or not they form parts of marks.
Any person designated in the first paragraph of this section as entitled to the benefits and subject to the
provisions of this Act shall be entitled to effective protection against unfair competition, and the remedies
provided herein for infringement of marks and trade-names shall be available so far as they may be appropriate
in repressing acts of unfair competition.
Citizens or residents of the Philippines shall have the same benefits as are granted by this section to persons
described in the first paragraph hereof.

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CHAPTER XII - Construction and Definitions


Section 38. Words and terms defined and construed. - In the construction of this Act, unless the contrary is
plainly apparent from the context The term "trade-name" includes individual names and surnames, firm names, trade-names, devices or words
used by manufacturers, industrialists, merchants, agriculturists, and others to identify their business, vocations
or occupations; the names or titles lawfully adopted and used by natural or juridical persons, unions, and any
manufacturing, industrial, commercial, agricultural or other organizations engaged in trade or commerce.
The term "trade-mark" includes any word, name, symbol, emblem, sign or device or any combination thereof
adopted and used by a manufacturer or merchant to identify his goods and distinguish them from those
manufactured, sold or dealt in by others.
The term "service-mark" means a mark used in the sale or advertising of services to identify the services of one
person and distinguish them from the services of others and includes without limitation the marks, names,
symbols, titles, designations, slogans, character names, and distinctive features of radio or other advertising.
The word "business" includes vocations or occupations.
The term "mark" includes any trade-mark or service-mark entitled to registration under this Act whether
registered or not.
The word "registrant" includes the owner of a registered mark or trade-name.
Section 39. Fees. - The following fees shall be paid:
For filing application for registration for each class included in the application, fifty pesos;
For filing application for revival of abandoned application for registration, twenty-five pesos;
For publication in the Official Gazette of allowance of application, fifty pesos;
For filing of opposition, fifty pesos;
For issuance and publication of certificate of registration, twenty-five pesos;
For filing each affidavit required by section twelve, Chapter II hereof, twenty-five pesos;
For filing disclaimer, amendment, surrender or cancellation after registration, twenty pesos;
For issuance of a substitute certificate of registration following correction of a registrant's mistake,
twenty-five pesos;
For issuance of a new certificate of registration following change of ownership of mark, twenty-five
pesos;
For filing petition for renewal of certificate of registration for each class, fifty pesos;
For filing petition for cancellation, fifty pesos;
For surcharge for any delayed payment or any delayed action of an applicant or registrant, twenty-five
pesos;

19

For notice of appeal from orders or decisions of Commissioner, twenty-five pesos;


For recording assignments for each mark or trade-name, ten pesos;
For issuance of a certificate regarding the registration or non-registration of each mark or trade-name,
ten pesos;
For issuance of an affirmative or negative certificate regarding the registration of any document in
connection, with a mark or trade-name, ten pesos;
For filing any other documents in connection with marks or trade-names not required by law to be
filed, ten pesos;
For certifying a copy to be a true and exact copy, one peso;
For copies of records, two pesos per photostat sheet; one peso per one hundred words of typewritten
copy; and
For services not otherwise specified, the Director shall, by regulation, provide the fees therefor.
Section 40. Collective marks and collective trade-names. - Collective marks and collective trade-names
belonging to cooperatives, associations or other collective groups or organization may also be registered under
the provisions of this Act, even though the said collectivities may not possess an industrial, commercial or
agricultural establishment. Foreign collectivities may not, however, procure such registration if the existence of
such collectivities is contrary to the laws of the country of origin.
Such collective marks and collective trade-names, when registered, shall be entitled to the protection provided
herein in the case of marks and trade-names, except when used so as to represent falsely that the owner or a user
makes or sells the goods on which the mark or trade-name is used, or so as to represent falsely the origin of the
goods or services.
The other provisions of this Act relating to marks and trade-names shall apply to collective marks and collective
trade-names, except that the part of paragraph (e), section four, Chapter II hereof, relating to geographically
descriptive marks or trade-names shall not be applicable in appropriate cases.
A "collective mark" or collective trade-name" is a mark or trade-name used by the members of a cooperative, an
association or other collective group or organization.
CHAPTER XIV - Miscellaneous Provisions
Section 41. Reservation in favor of prior registration. - Owners of marks or trade-names registered under the
provisions of the laws in force prior hereto, the registrations of which are still subsisting under the said laws are
hereby granted the right:
(a) Within one year after the taking effect of this Act to surrender their certificates of registration and
procure the issuance of new certificates, in which event they shall be entitled to the benefits and subject
to the provisions of this Act; or
(b) Within one year before the expiration of the period for which the certificates of registration was
issued or renewed, the registrant may renew the registration upon filing an application therefor, as
provided in section fifteen, Chapter III hereof. If said application is granted a renewal certificate shall
be issued by the Director in accordance with the provisions of this Act.

20

Section 42. Renewal of registrations which expired during the war. - The provisions of this Act to the contrary
notwithstanding, registrations under prior laws which expired after the eighth day of December, nineteen
hundred forty-one, and which the owners were not able to renew for causes arising out of the war, may be
renewed within one year after this Act takes effect, and non-use of the mark or trade-name may be shown to be
due to special circumstances. If the application for renewal is granted, a renewal certificate to commence from
the date of the expiration of the prior registration shall be issued by the Director in accordance with the
provisions of this Act.
Section 43. Pending applications. - All applications for registration pending on the effective date of this Act
may be amended, if practicable, to bring them under the provisions of this Act, without the payment of any
additional fee. The prosecution of such applications whether amended or not and the grant of registrations
thereon shall conform to the provisions of this Act.
Section 44. Repealing clause. - Act Numbered Six hundred and sixty-six of the Philippine Commission,
approved March six, nineteen hundred and three, and all laws amendatory thereto; Act Numbered Thirty
hundred and seventy of the Philippine Legislature, approved March sixteen, nineteen hundred and twenty-three;
Act Numbered Thirty-two hundred and two, approved December three, nineteen hundred and twenty-four, and
all other acts, or parts of acts inconsistent herewith, are hereby repealed.
Section 45. Effective date. - This Act shall take effect on its approval.
Approved: June 20, 1947

RA 422: AN ACT AUTHORIZING THE PRESIDENT OF THE PHILIPPINES TO REORGANIZE


WITHIN ONE YEAR THE DIFFERENT EXECUTIVE DEPARTMENTS, BUREAUS, OFFICES,
AGENCIES AND OTHER INSTRUMENTALITIES OF THE GOVERNMENT, INCLUDING THE
CORPORATIONS OWNED OR CONTROLLED BY IT
Section 1. Declaration of Policy. - It is declared to be the policy of Congress to promote simplicity, economy
and efficiency, and to improve the service in the transaction of the public business in the departments, bureaus,
agencies, boards, commissions, offices, and other instrumentalities of the Government, including all
corporations owned or controlled by the Government by:
1. Limiting expenditures to the lowest amount consistent with the efficient performance of essential
services, activities, and functions;
2. Eliminating duplication and overlapping of services, activities, and functions;
3. Consolidating services, activities and functions of a similar nature;1awphi1
4. Abolishing services, activities, and functions not necessary to the efficient conduct of the
Government; and
5. Defining and limiting executive functions, services and activities.
Section 2. For the purpose of carrying out the policy set forth in section one of this Act, the President of the
Philippines is hereby authorized to effect by executive order from time to time, for a period not exceeding one
year from the date of the approval of this Act, and within the limits of the total current appropriation, such
reforms and changes in the different executive departments, bureaus, offices, agencies and other
instrumentalities of the Government including the corporations owned or controlled by the government as he
may deem necessary, with the power to diminish, add to or abolish those existing and create new ones;
consolidate related undertakings; transfer functions, appropriations, equipment, property, records, and personnel
from one department, bureau, office, agency or instrumentality to another; to eliminate duplicated services or

21

authorize new ones not provided for; classify, combine, split or abolish positions; standardize salaries and do
whatever is necessary and desirable to effect economy and promote efficiency in the government service.
Section 3. Officers and employees whose positions are abolished or who may be separated from the service as a
consequence of the reorganization provided in this Act shall not lose their civil service eligibility for a period of
ten years from the date of their separation from the service, nor their right to any gratuity which the Congress
may provide. In case an office needs the services of additional personnel, preference in the appointment shall be
given to the officers or employees who may be separated from the service as a result of this reorganization and
in accordance with the recommendation of the Commissioner of Civil Service.
Section 4. Any action taken by the President pursuant to the provisions of this Act shall be immediately reported
to Congress and shall be valid and subsisting until Congress shall provide otherwise.
Section 5. This Act shall take effect upon its approval.
Approved: January 6, 195

REPUBLIC ACT NO. 623 - AN ACT TO REGULATE THE USE OF DULY STAMPED OR MARKED
BOTTLES, BOXES, CASKS, KEGS, BARRELS AND OTHER SIMILAR CONTAINERS

Section 1. Persons engaged or licensed to engaged in the manufacture, bottling or selling of soda water,
mineral or aerated waters, cider, milk, cream, or other lawful beverages in bottles, boxes, casks, kegs, or barrels,
and other similar containers, with their names or the names of their principals or products, or other marks of
ownership stamped or marked thereon, may register with the Philippine Patent Office a description of the names
or are used by them, under the same conditions, rules, and regulations, made applicable by law or regulation to
the
issuance
of
trademarks.
Sec. 2. It shall be unlawful for any person, without the written consent of the manufacturer, bottler or seller
who has successfully registered the marks of ownership in accordance with the provisions of the next preceding
section, to fill such bottles, boxes, kegs, barrels, or other similar containers so marked or stamped, for the
purpose of sale, or to sell, dispose of, buy, or traffic in, or wantonly destroy the same, whether filled or not, or to
use the same for drinking vessels or glasses or for any other purpose than that registered by the manufacturer,
bottler or seller. Any violation of this section shall be punished by a fine or not more than one hundred pesos or
imprisonment
of
not
more
than
thirty
days
or
both.
Sec. 3. The use by any person other than the registered manufacturer, bottler, or seller, without written
permission of the latter, of any such bottle, cask, barrel, keg, box or other similar container, or the possession
thereof by any junk dealer or dealer in casks, barrels, kegs, boxes, or other similar containers, the same being
duly marked or stamped and registered as herein provided, shall be prima facie evidence that such use, or
possession
is
unlawful.
Sec. 4. The criminal action provided in this Act shall is no way affect any civil action to which the registered
manufacturer,
bottler,
or
seller,
may
be
entitled
by
law
or
contract.
Sec. 5.

No action shall be brought under this Act against any person to whom the registered manufacturer,

22

bottler, or seller, has transferred by way of sale, any of the containers herein referred to, but the sale of the
beverage contained in the said containers shall not include the sale of the containers unless specifically so
provided.
Sec. 6.
"sisi",
Sec.

The provision of this Act shall not be interpreted as prohibiting the use of bottles as containers for
"bagoong",
"patis",
and
similar
native
products.
7.

This

Act

shall

take

effect

upon

its

approval.

Approved: June 5, 1951

RA 5434: AN ACT TO PROVIDE A UNIFORM PROCEDURE FOR APPEALS FROM THE COURT
OF AGRARIAN RELATIONS, THE SECRETARY OF LABOR UNDER SECTION 7 OF REPUBLIC
ACT NUMBERED SIX HUNDRED TWO, ALSO KNOWN AS "THE MINIMUM WAGE LAW", THE
DEPARTMENT OF LABOR UNDER SECTION 23 OF REPUBLIC ACT NUMBERED EIGHT
HUNDRED SEVENTY-FIVE, ALSO KNOWN AS "THE INDUSTRIAL PEACE ACT", THE LAND
REGISTRATION COMMISSION, THE SECURITIES AND EXCHANGE COMMISSION, THE
SOCIAL SECURITY COMMISSION, THE CIVIL AERONAUTICS BOARD, THE PATENT OFFICE,
AND THE AGRICULTURAL INVENTIONS BOARD, AND FOR OTHER PURPOSES.
Section 1. Appeals from specified agencies. Any provision of existing law or Rule of Court to the contrary
notwithstanding, parties aggrieved by a final ruling, award, order, decision, or judgment of the Court of Agrarian
Relations; the Secretary of Labor under Section 7 of Republic Act Numbered Six hundred and two, also known
as the "Minimum Wage Law"; the Department of Labor under Section 23 of Republic Act Numbered Eight
hundred seventy-five, also known as the "Industrial Peace Act"; the Land Registration Commission; the
Securities and Exchange Commission; the Social Security Commission; the Civil Aeronautics Board, the Patent
Office and the Agricultural Inventions Board, may appeal therefrom to the Court of Appeals, within the period
and in the manner herein provided, whether the appeal involves questions of fact, mixed questions of fact and
law, or questions of law, or all three kinds of questions. From final judgments or decisions of the Court of
Appeals, the aggrieved party may appeal by certiorari to the Supreme Court as provided in Rule 45 of the Rules
of Court.
Section 2. Appeals to Court of Appeals. Appeals to the Court of Appeals shall be filed within fifteen (15) days
from notice of the ruling, award, order, decision of judgment or from the date of its last publication, if
publication is required by law for its effectivity; or in case a motion for reconsideration is filed within that
period of fifteen (15) days, then within ten (10) days from notice or publication, when required by law, of the
resolution denying the motion for reconsideration. No more than one motion for reconsideration shall be

23

allowed any party. If no appeal is filed within the periods here fixed, the ruling, award, order, decision or
judgment shall become final and may be executed as provided by existing law.
Section 3. How appeals taken. Appeals shall be taken by filing a notice of appeal with the Court of Appeals and
with the court, officer, board, award, order, decision or judgment appealed from, serving a copy thereof on all
other interested parties. The notice of appeal shall state, under oath, the material dates to show that it was filed
within the period fixed in this Act.
Section 4. Docketing fee and deposits for costs. Upon filing of the notice of appeal, the appellant shall pay to the
Clerk of the Court of Appeals the docketing fee fixed in Rule 141, Section 2 (a) of the Rules of Court and
deposit the sum of fifty pesos (P50.00) for costs, or in case the appellant be a laborer, employee, agricultural
lessee, or tenant, a motion setting forth said fact under oath, and praying that he be exempted from payment of
docketing fee and the deposit for costs. Copy of the motion shall be served on all interested parties. Should the
court find said motion to be well founded it shall grant the same; but if the Court denies the motion, the
appellant shall pay the docketing fee and make the deposit for costs within fifteen (15) days from notice of the
denial. Failure to pay the docketing fee and make the deposit for costs within the period here fixed shall be a
ground to dismiss the appeal.
Section 5. Effect of appeal. Appeal shall not stay the award, order, ruling, decision or judgment unless the
officer or body rendering the same or the court, on motion, after hearing, and on such terms as it may deem just,
should provide otherwise. The propriety of a stay granted by the officer or body rendering the award, order,
ruling decision or judgment may be raised only by motion in the main case.
Section 6. Elevation of Record. Within five (5) days from the payment of the docket fee and deposit for costs,
the Clerk of the Court of Appeals shall notify the clerk of court, commission, board, or office concerned to
forward the record of the case. Within five (5) days from receipt of such notice, the latter shall comply by
forwarding the whole original record of the case or a certified true copy of the whole record to the Court of
Appeals. Failure to elevate the record within the period here fixed shall be dealt with as for contempt of Court.
Section 7. Appellate procedure; Briefs. Until the Supreme Court shall provide otherwise by Rule of Court,
appeals shall proceed as provided by Rules 46 to 55 of the Rules of Court, insofar as applicable, with the
following modifications;
(a) The appellant's brief shall be served and filed within thirty (30) days from the date that he is notified
that the record has been received by the Court of Appeals, within the period above fixed, and shall
contain, as an appendix, the ruling, order, award, decision or judgment appealed from; the appellee's
brief shall be served and filed within thirty (30) days from receipt of the appellant's brief; and the
appellant's reply brief, within fifteen (15) days from receipt of the appellee's brief.
(b) The Court of Appeals may extend the periods above fixed only for good cause; and the total
extension granted any party shall not, except in meritorious cases, be greater than the original period
above fixed.
(c) Where the appellant has been exempted from paying the docket fee or making the deposit for costs,
or when the appellee is an employee, laborer or tenant, he shall be allowed to file his briefs in
typewritten or mimeographed form.
Section 8. Repealing clause. Section twelve of Republic Act Numbered One thousand two hundred and sixtyseven as amended; Section seven of Republic Act Numbered Six hundred two, as amended; Section twentythree of Republic Act Numbered Eight hundred and seventy-five; Section thirty-six of Commonwealth Act
Numbered Eighty-three, as amended; Section five of Republic Act Numbered One thousand one hundred and
sixty-one, as amended, Section four of Republic Act Numbered One thousand one hundred fifty-one; Sections
forty-eight and forty-nine of Republic Act Numbered Seven hundred and seventy-six; Sections sixty-three,
sixty-four and sixty-five of Republic Act Numbered One hundred and sixty-five, as amended; Section two of
Republic Act Numbered One thousand two hundred and eighty-seven, Section thirty-three of Republic Act

24

Numbered One hundred sixty-six, and all other portions of said Acts, and all other laws, rules and regulations, or
Rules of Court, or parts thereof, that are inconsistent with the provisions of this Act, are hereby amended,
repealed or modified to conform herewith.
Section 9. Effectivity. This Act shall take effect upon its approval.
Approved: September 9, 1968
Administrative Order No. 94, s. 1967

AO NO 94: Signed on November 20, 1967


MALACAANG
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
ADMINISTRATIVE ORDER NO. 94
CREATING A COMMITTEE TO UPDATE THE PHILIPPINE PATENT SYSTEM
By virtue of the powers vested in me by law, I, FERDINAND E. MARCOS, President of the Philippines, do
hereby create a committee to update the Philippine patent system composed of the following:
The Secretary of Commerce and Industry
The Chairman, National Science Dev. Board
The Chairman, Philippines Patent Office
The Chairman, Philippine Inventors Comm.
The Director-General, Presidential Economic Staff
The Director, Office of the National Planning, National Economic Council

25

The Legal and Policy Research Office, Presidential Economic Staff, shall act as Secretariat.
The Committee shall have the following powers and functions:
1. Review the Philippine patent system and submit a comprehensive amendatory bill to upgrade our laws along
international trends for protection of industrial property;
2. Study and recommend means of coordinating the activities of the Philippines Patent Office and the Philippine
Inventors Commission in order to reduce the backlog in processing patent applications; and
3. Study and recommend means by which venture capital may be made available to inventors to finance the
manufacture of inventions.
The Committee is empowered to call upon any government office, agency or instrumentality for such assistance
as it may need for the accomplishment of its task.
Done in the City of Manila, this 20th day of November, in the year of Our Lord, nineteen hundred and sixtyseven.
(Sgd.) FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.) RAFAEL
Executive Secretary

M.

SALAS

Source: Malacaang Records Office


Office of the President of the Philippines. (1967). [Administrative Order Nos. : 1 199]. Manila: Malacaang Records
Office.

PRESIDENTIAL DECREE No. 721 June 2, 1975


FURTHER AMENDING PART IX OF THE INTEGRATED REORGANIZATION PLAN BY
RECONSTITUTING THE DEPARTMENT OF TRADE
WHEREAS, it is the declared policy of the government to strengthen the socio-economic development in the
field of commercial activities by vigorous export promotion to generate foreign exchange and by effective
domestic trade and marketing programs;
WHEREAS, with the creation of a separate Department of Tourism and a Department of Industry, the role and
scope of activities of the Department of Trade necessitate a redefinition; and
WHEREAS, there is an urgent need to realign government efforts toward export and trade promotion for greater
effectiveness.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers
vested in me by the constitution, do hereby adopt, approve and make as part of the law of the land the
amendment to the provisions of Part IX of the Integrated Reorganization Plan by reconstituting the Department
of Trade.
Accordingly, Part IX of the Integrated Reorganization Plan is hereby amended to read as follows:

26

Section 1. Department proper. The Department of Trade, hereinafter referred to in this Decree as the
Department, shall be responsible for the promotion, development, expansion, regulation and control of foreign
and domestic trade and in pursuance of this responsibility shall be empowered and authorized to issue such rules
and regulations and adopt such measures as to:
(a) consolidate and/or coordinate all functions and efforts in particular and development of foreign
trade in general;
(b) maintain reasonable allocation/distribution as between domestic and export market through export
retention, export allocation, export subsidy, pricing, export ban and other schemes and measures to
ensure price stability and supply availabilities of essential commodities in the local market;
(c) regulate the import of essential consumers and producers' items a view to enhancing availability at
fair and competitive prices to end-users; and
(d) promote and regulate domestic trade, marketing and distribution to ensure the rational, economic
and steady flow of commodities from producing and/or marketing centers to areas in short-supply
through the support of centralized buying operations, terminal markets and large scale and economical
distribution systems organized by the public or private sector.
Authority and responsibility for the Department is vested in the Secretary of Trade, hereinafter referred to as the
Secretary. He shall be assisted by only one Undersecretary.
The following are created in the Department Proper: (1) Planning Service; (2) Financial and Management
Service; (3) Administrative Service; and (4) Legal Service.
Section 2. Bureau of Domestic Trade. The Bureau of Domestic Trade shall, among others, consolidate functions
pertaining to local commerce and the protection of the consuming public.
There are created the following divisions in the Bureau of Domestic Trade:
(a) Trade Nationalization Division which shall implement the provisions of Republic Act Numbered
One Thousand Three Hundred Eighteen, Republic Act Numbered One Thousand One Hundred Eighty
and all such laws relating to the regulations of retail trade and other business in Filipino citizens;
(b) Domestic Trade Promotion Division which shall stimulate domestic commerce, establish trade
relationship among businessmen and encourage the organization of merchant groups among Filipinos
engaged in different lines of business;
(c) Brokers Division which shall administer the licensing of commercial brokers and real estate brokers
and appraisers, excluding brokers for stocks and securities;
(d) Consumer Protection Division which shall administer the registration of business names, private
merchants, and bulk sales documents; and enforce laws on monopolies and trade and practices in
restraint of trade, mislabeling and product misrepresentation, other unfair trade practices and consumer
protection in general, in this last regard for which it shall coordinate with the Food and Drug
Administration of the Department of Health; and
(e) Field Operations Divisions which shall extend the services and functions of the Bureau to the
different regions, provinces and district of the country.
Section 3. Bureau of Foreign Trade. The Bureau of Foreign Trade shall, among others, consolidate all functions
and efforts pertaining to the promotion of exports in particular and development of foreign trade in general.

27

The following divisions are created in the Bureau:


(a) Foreign Trade Promotion Division shall, among others, conduct researches and studies on the
promotion and expansion of Philippine exports. It shall also provide necessary information to interested
persons and businessmen on foreign trade development and prospects.
(b) Export Service Coordination Division which shall, among others, coordinate all activities and
functions of government agencies involved in the processing of export papers. It shall also update,
improve or simplify the administrative procedures involved in the processing of export papers.
(c) Foreign Trade Relations Division shall, among others, deal with Philippine commercial relations
with other countries. It shall gather information on other countries' economies and economic and
commercial policies and shall encourage Philippine participation in international trade fairs and
expositions.
All commercial attaches shall be appointed by, and placed under the control of the Secretary and under the
supervision of the Director of the Bureau of Foreign Trade, except when actually assigned to missions abroad, in
which case the provisions of Paragraph 3, Article IV, Part XVIII of the Integrated Reorganization Plan shall
prevail.
Section 4. Securities and Exchange Commission. The Securities and Exchange Commission shall, among
others, encourage the formation of partnership and corporate ventures with widely and publicly held equity, and
protect the investing public from deceptions and frauds in securities marketing.
The following divisions are retained in the Securities and Exchange Commission:
(a) Stock Brokers and Exchange Division which shall, among others, handle the regulation of activities
of securities, exchanges, brokers, dealers and their salesmen; and
(b) Examiners and Appraisers Division which shall, among others, handle the financial and accounting
phase of the visitorial functions of the Commission.
The Legal Enforcement Division is renamed Corporate Division. It shall, among others, handle the processing
of corporation papers and by-laws, articles of association and partnership agreements, the registration and
licensing of securities, and investigation of corporations.
The Securities and Exchange Commission shall be converted into a collegial body composed of a full-time
Chairman and two full-time members who shall serve for a term of six years for which the corresponding
positions are created. In the initial appointments of Chairman and members, one shall be appointed to service for
six years, one for four years, and one for two years. The positions of Commissioner and Deputy Commissioner
are hereby abolished: Provided, That the incumbent Commissioner shall continue to serve the Commission in
accordance with Paragraph 13, Article 1, Chapter 1, Part XXIII of the Integrated Reorganization Plan.
Section 5. Philippines Bureau of Products Standards. The Bureau of Standards is renamed Philippines Bureau
of Products Standards which shall, among others, be responsible for establishing standards for commodities,
inspection and certification of products for exports and local distribution, and inspection and certification of
products imported by the country.
Section 6. Philippines Patent office. The Philippines Patent Office shall, among others, be responsible for the
promotion of scientific research and inventions; and for the protection of owners of industrial property rights.
In addition to the General Organic Chemistry Division; Chemical Technology Division; Mechanical Division;
Electrical, Design and Utility Model Examining Division; and the Trademark Examining Division, the
following divisions are created.

28

(a) Legal Service Division which shall, among others, render legal advise to the Director of Patents and
to hear and decide inter-parte cases, oppositions, cancellations, interferences, public-use proceedings
and matters dealing with compulsory licensing.
(b) Research and Information Division which shall, among others, be responsible for the conduct or
researches on various subjects, act as custodian of all scientific and legal books of the Office and shall
perform library service functions, and product and disseminate information pertaining to office and
court decisions on patent and trademark case.
Section 7. Bureau of Fiber Inspection Service. The Bureau of Fiber Inspection Service is renamed Bureau of
Fiber Development and Inspection Service, which shall, among others, be responsible for the maintenance and
enforcement of a uniform standard classification of abaca and other Philippine fibers intended for export and for
domestic consumption.
Section 8. ECAFE UNIT. The ECAFE Unit is renamed ESCAP (Economic and Social Commission for Asia and
the Pacific) Unit. The ESCAP Unit of the Philippine Committee on ESCAP matters is retained in the
Department and its functions shall include, among others, to act as liaison agency for securing quick exchange
of information between the ESCAP Secretariat and the Philippine Government and the various governments in
the ESCAP region and to work for the implementation of resolution or studies approved or undertaken by the
Commission and ESCAP Secretariat, respectively.
Section 9. UNCTAD Unit. The UNCTAD Unit of the Philippine Committee on UNCTAD matters is maintained
in the Department and its functions, shall include, among others, to act as liaison agency in the various areas of
economic and trade development between the United Nations Conference on Trade and Development
(UNCTAD) and the Philippine Government in the various trade aspects of international economic cooperation
and to undertake the implementation of resolution and studies recommended and approved by the inter-agency
committee involved.
Section 10. Government-Owned or Controlled Corporations and Agencies attached to the Department of
Trade.The following agencies are attached to the Department: (a) Philippine Export Credit Insurance and
Guarantee Corporation; (b) Permanent Committee for the Implementation of the Philippine Indonesian
Agreement on Economic and Technical Cooperation; d) Design Center Philippines; (e) Metric System Board; (f)
Philippine Shipper's Council; (g) Cottage Industry Development Council (CIDC); (h) Cottage Industry
Development Enterprise (CIDE); (i) National Cottage Industries Development Authority (NACIDA); and (j)
Nacida Bank.
Section 11. Price Control Council. The Price Control Council is renamed Price Stabilization Council and placed
under the administrative supervision of the Department.
Section 12. Trade Assistance Centers. The putting up of trade assistance centers with an appropriation of four
million five hundred thousand pesos (P4,500,000) under the current Annual General Appropriation Decree is
hereby transferred from the Bureau of Domestic Trade to the Office of the Secretary. To carry out the purposes
of the trade assistance centers, the sum of two million two hundred fifty thousand pesos (P2,250,000) is hereby
appropriated for the remainder of Fiscal year nineteen hundred and seventy-five (1974-1975).
Section 13. Personnel. Except for such technical positions as the Secretary may recommend to and be approved
by the president, all positions in the Department shall be subject to the provisions of Civil Service Law and the
rules and regulations of the Wage and Position Classification Office (WAPCO).
Section 14. Repeal. Any and all existing statutes, decree, rules and regulations, or parts thereof inconsistent
herewith are repealed or modified accordingly.
Section 15. Effectivity. This Decree shall take effect immediately.
Done in the City of Manila, this 2nd day of June, in the year of Our Lord, nineteen hundred and seventy-five.

29

PRESIDENTIAL DECREE No. 1263


AMENDING PORTIONS OF REPUBLIC ACT NO. 165 OTHERWISE KNOWN AS THE PATENT
LAW
WHEREAS, certain provisions of Republic Act No. 165, otherwise known as the Patent Law, have become
obsolete and are inadequate to meet the demands of our primordial goal of industrial and overall national
economic development;
WHEREAS, this goal can, to a significant extent, be promoted through the licensing of patents;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers
vested in me by the Constitution, do hereby order and decree the following:

30

Section 1. Chapter VIII of republic Act Numbered 165 is hereby amended to read as follows:
"CHAPTER VIII Licensing
"ARTICLE ONE. Voluntary Licensing
"Sec. 33-A. Voluntary License Contracts. (1) All voluntary license contracts as well as renewals thereof
involving payment of royalty for the use of patents, transfer of technology, or furnishing of services respecting
patents of technology, or furnishing of services respecting patents shall, whenever entered into between
residents and non-residents, be submitted to the Technology Resource center for prior approval and registration.
"(2) The royalty to be granted in all license contracts involving manufacturing (including actual transfer of
technology services such as secret formulate, processes, technical know-how and the like) shall, whenever
entered into between an alien licensor and a Filipino licensee, not exceed five per cent (5%) of the net wholesale
price of the articles manufactured under the royalty agreement and shall be equally distributed to all the
patentees in cases where more than one patent similar to that contemplated in Section 34-C hereof are involved.
(3) The term "net wholesale price" means the gross amount billed for the patented product subject to royalty
less;
"(a) Trade, quality, or cash discounts, and broker's or agent's commission, if any, allowed or paid;
"(b) Credits or allowances, if any, given or made on account of rejection or return of the patented
product previously delivered; and
"(c) Any tax, excise or other government charge, included in such amount, on, or measured by, the
production, sale, use or delivery of the patented product.
"(4) Unless and until approved and registered in accordance with paragraph (1) of this section, the license
contract contemplated therein may not be the subject of an application filed with either the Board of Investment
or the Central Bank of the Philippines. Neither will it have an effect against third persons until such registration.
"Sec. 33-B. Rights of Licensor. (1) In the absence of any provision of the contrary in the license contract, the
grant of a license shall not prevent the licenses from granting further licenses to third persons nor from
exploiting the invention himself.
"(2) Without prejudice to the grant of a compulsory license in accordance with Section 34 hereof, the grant of an
exclusive license shall prevent the licensor form granting further licenses to third persons and, unless otherwise
expressly provided in the license contract, from exploiting the invention himself.
"Sec. 33-C. Rights of Licensee. (1) The license shall be entitled to exploit the invention during the whole
duration of the patent in the entire territory of the Philippines through any application of the invention, and in
respect of all acts referred to in sections 37 and 42.
"(2) Clauses of the following tenor contained in license contracts shall be null and void:
"(a) Those which impose upon the licensee the obligation to acquire from a specific source capital
goods, intermediate products, raw materials, and other technologies, or of permanently employing
personnel indicated by the licensor;
"(b) Those pursuant to which the licensor reserves the right to fix the sale or resale prices of the
products manufactured on the basis of the license;
"(c) Those that contain restrictions regarding the volume and structure of production;

31

"(d) Those that prohibit the use of competitive technologies;


"(e) Those that establish a full or partial purchase option in favor of the licensor;
"(f) Those that obligate the licensee to transfer to the licensor the inventions or improvements that may
be obtained through the use of the licensed technology;
"(g) Those that require payment of royalties to the owners of patents for patents which are not used;
"(h) Those that prohibit the licensee to export the licensed product; and
"(i) Other clauses with equivalent effects.
"ARTICLE TWO. Compulsory Licensing
"Sec. 34. Grounds for Compulsory Licensing. (1) Any person may apply to the Director for the grant of a
license under a particular patent at any time after the expiration of two years from the date of the grant of the
patent, under any of the following circumstances;
"(a) If the patented invention is not being worked within the Philippines on a commercial scale,
although capable of being so worked, without satisfactory reason;
"(b) If the demand for the patented article in the Philippines is not being met to an adequate extent and
on reasonable terms;
"(c) If, by reason of refusal of the patentee to grant a license or licenses on reasonable terms, or by
reason of the conditions attached by the patentee to article or working of the patented process or
machine for production, the establishment of any new trade or industry in the Philippines is prevented,
or the trade or industry therein is unduly restrained;
"(d) If the working of the invention within the country is being prevented or hindered by the
importation of the patented article; or
"(2) In any of the above cased, a compulsory license shall be granted to the petitioner provided that he has
proved his capability to work the patented product or to make use of the patented product in the manufacture of
a useful product, or to employ the patented process.
"(3) The term "worked" or "working" as used in this section means the manufacture and sale of the patented
article, of the patented machine, or the application of the patented process for production, in or by means of a
definite and substantial establishment or organization in the Philippines and on a scale which is reasonable and
adequate under the circumstances. Importation shall not constitute "working."
"Sec. 34-A. Products of Processes Vital to National Defense, Economy of Health. The National Economic
Development Authority may, by order, provide that for certain categories of such products or processes or for
certain categories of such products or processes, which are declared in such order to be of vital importance to
the country's defense or economy or to public health, compulsory license may be granted under the conditions
provided in the next preceding section the conditions provided in the next preceding section even before the
expiration of the period mentioned therein.
Sec. 34-B. Product, Substances or Processes Subject of Project Approved by the Board of Investments. (1) All
products or substances and/or processes involved in any industrial project approved by the Board of Investments
under the Investment Incentives Act shall be deemed products or substances and/or processes vital to the
national defense or economy or to public health. If the proponent of the project is neither a patentee not licensee
of any of the products, substances or processes involved therein, a compulsory license may, upon application by

32

the proponent or endorsement made by the Board of Investments, be issued in his favor by the Director of
Patents without need of complying with the provisions of Section 34 and 34-A.
"(2) In cases falling under the foregoing paragraph, the requirements of Sections 34-D and 34-E shall
be complied with, but no hearing shall be necessary except to determine the identity of the patent
owner of the products, substances or processes subject of the application or endorsement. If two or
more patents exist for the same product, substance or process, the license shall be granted under all
subsisting patents involved.
Sec. 34-C. Compulsory License Based Upon Interdependence of Patents. If an invention protected by a patent
within the country cannot be worked without infringing rights derived from a patent granted on a priority, a
compulsory license may, upon application and without necessity of complying with the requirements of Sections
34, be granted under the conditions specified in Section 35 to the registered owner of the latter patent, to the
extent necessary for the working of his invention and insofar as such invention forming the subject of the earlier
patent, or constitutes noteworthy technical progress in relation to it.
Sec. 34-D. Form and Contents of Petition. The petition for compulsory licensing must be in writing and verified
by the petitioner and accompanied by the required filing fee. It shall give the name and address of the petitioner
as well as those of the necessary party or parties respondent; and shall state the number and date of issue of the
patent in connection with which compulsory license is sought; the name of the patentee; the title of the
invention; the statutory ground of grounds upon which compulsory license is sought; the ultimate facts
constituting the petitioner's cause of action; and relief prayed for.
Sec. 34-E. Notice of Hearing. (1) Upon filing of a petition under Section 34, a notice shall be given in the same
manner and form as that provided in section 31, Chapter VII hereof. The resident agent or representative
appointed in accordance with the rules of practice before the Patent Office in patent cases shall be found to
accept service of notice of filing of the petition within the meaning of this section.
"(2) In every case, the notice shall be published in a newspaper of general circulation in the country
three times for three consecutive weeks.
"Sec. 35. Grant of License. (1) If the Director finds that a case for the grant is a license under Section 34 hereof
has been made out, he shall, within one hundred eighty days from the date the petition was filed, order the grant
of an appropriate license. The order shall state the terms and conditions of the license which he himself must fix
in default of an agreement on the matter manifested or submitted by the parties during the hearing.
"(2) A compulsory license sought under Section 34-B shall be issued within one hundred twenty days
from the filing of the proponent's application or receipt of the Board of Investment's endorsement.
"Sec. 35-A. Rights of Compulsory License. The compulsory license shall give the licensee the right of patentees
referred to in Section 37 and 42 hereof.
Sec. 35-B. Terms and Conditions of Compulsory License. (1) A compulsory license shall be non-exclusive, but
this shall be without prejudice to the licensee's right to oppose an application for a new such license.
"(2) The terms and conditions of a compulsory license, fixed in accordance with Section 35, may
contain obligations and restrictions both for the licensee and for the registered owner of the patent.
"(3) A compulsory license shall only be granted subject to the payment of adequate royalties
commensurate with the extent to which the invention is worked. However, royalty payments shall not
exceed five per cent (5%) of the net wholesale price (as defined in section 33-A) of the product,
substance, or process subject of the compulsory license is involved in an industrial project approved by
the Board of Investments, the royalty payable to the patentee or patentees shall not exceed three per
cent (3%) of the net wholesale price (as defined in Section 34-A) of the patented commodity
manufactured under the patented process; the same rate of royalty shall be paid whenever two or more

33

patents are involved, which royalty shall be distributed to the patentees in rates in rates proportional to
the extent of commercial use by the licensee giving preferential values to the holder of the oldest
subsisting product patent.
"Sec. 35-C. Transfer of Compulsory License. A compulsory license can only be transferred with the undertaking
which uses the patented invention. Any such transfer shall, on pain of invalidity, require the authorization of the
Director of Patents and its registration in accordance with Section 33-A.
"Sec. 35-D. Amendment and Cancellation. (1) Upon request of the registered owner of the patent or of the
licensee, the terms of the compulsory license may be amended by the Director of Patents when new facts justify
it, in particular when the registered owner of the patent grants contractual licenses on terms more favorable to
the contractual licensees.
"(2) At the request of the registered owner of the patent, the compulsory license may be canceled if the
licensee does not comply with the prescribed terms of the license.
"(3) The provisions of Sections 33-A and 35 shall apply with respect to amendments and cancellations
of compulsory licenses."
"ARTICLE THREE Common Provision
"Sec. 35-E. Licensee's Exemption form Liability. (1) Any one who works a patented product, substance and/or
process under a license granted under this Chapter shall be free from any liability for infringement, provided
that in the case of voluntary licensee no conclusion with the licensor is proven. This is without prejudice to the
right of the rightful owner of the patent to recover from the licensor whatever he may have received as royalties
under the license.
"(2) The existence of a conflict between two or more patents shall in no way affect the right of the
licensee under this Chapter to work the invention, and no injunction or other court process shall be
valid and enforced which interferes with this right. Any person violating this provision shall be
punished by a fine not less than Five Thousand Pesos but not exceeding Thirty Thousand Pesos but not
exceeding Thirty Thousand Pesos or by imprisonment of not less than one year but not exceeding five
years."
Section 2. Section 75 of the same Act is hereby amended to read as follows:
"Sec. 75. Fees. The following fees shall be paid for filing an application for patent which shall include the cost
of publication in the official Gazette, Four Hundred Pesos, if it is an invention patent and Two Hundred pesos, if
it is a utility model or design patent, upon filing each application and, if it is on invention patent, Twenty-Five
Pesos for each claim in excess of five claims presented on filing or at any other time.
For issuing each original invention patent, One Hundred Pesos.
For annual fees due at the beginning of the fifth and each succeeding year, Two Hundred Pesos each; for
surcharge for delayed payment of annual fee, Fifty Pesos; for reinstating a lapse patent, Two Hundred Pesos; for
filing a petition for cancellation, except when filed by the Solicitor General, One Hundred Pesos; for filing a
petition for compulsory license, Two Hundred Pesos; for copies of records of the Office, Two Pesos per hundred
words of typewritten copy;
"For each certification of copy of any record, Twenty Pesos;
"For recording assignment, and other documents relating to title and license, Twenty Pesos;

34

"For notice of appeal to the Court of Appeals from an order or decision of the Chief Patent Examiner, Fifty
Pesos;
For renewing a design or utility model patent, One Hundred Fifty Pesos;
"For surcharge of delayed renewal of a design or utility model patent, Forty Pesos; and
"For services not otherwise specified, the Director shall provide, by regulation, the fees therefor.
"The Director may by rule fix higher fees for nationals from the developed countries.
"The Philippine Investors Commission shall be exempt from paying the above fees but only with respect to
application filed by it in behalf of indigent inventors."
Section 3. The same Act is further amended by inserting between Sections eighty-two and eighty-three the
following new section:
"Sec. 82-A. The Director shall authorized to use and spend a portion not to exceed fifty per cent of the Office's
total income for the improvement of facilities and services as well as for equipment outlay, for implementation
of this Act including expenses for participation in the World Intellectual Property Organization and similar
organizations concerned with international cooperation in the expeditious processing of patent applications."
Section 4. This Decree shall become effective thirty days following its promulgation.
Done in the City of Manila, this 14th day of December, in the year of Our Lord, nineteen hundred and seventyseven.

35

Office of the President


of the Philippines
Malacaang
EXECUTIVE ORDER NO. 133
REORGANIZING THE DEPARTMENT OF TRADE AND INDUSTRY,
ITS ATTACHED AGENCIES, AND FOR OTHER PURPOSES
WHEREAS, under Article II, Section 1, of the Provisional Constitution, as adopted in Proclamation No. 3 dated
March 25, 1986, the President shall give priority to measures to achieve the mandate of the people to completely
reorganize the government;
WHEREAS, Article XVIII, Section 16, of the 1987 Constitution recognizes that the reorganization of the
government shall be continued even after the ratification of the Constitution;
WHEREAS, under Article XVIII, Section 6, of the 1987 Constitution, the President shall continue to exercise
legislative powers until the first Congress is convened;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested
in me by the Constitution, do hereby order the following:
SECTION 1. Declaration of Policy. It shall be the national policy to pursue a private sector based growth
strategy, centered on a socially responsible program to deregulate business in a manner that shall encourage
private initiative and create a dynamically competitive economic environment, but assure equal opportunity to
all members of the business community, whether small or large, and whether rural or urban.
Government shall provide institutional services to the private sector, such as: investment and export promotion,
market information, product research and development, technological assistance, manpower training,
infrastructure support, fiscal incentives, and such other services that shall facilitate increased international trade,
improve national productivity and accelerate industrialization.
Pursuant to this policy, the State shall:
(a) Uphold the business enterprise as the basis of economic growth, expansion and change;
(b) Encourage and support private sector initiative, not compete with it;
(c) Encourage and support the establishment of and protect trade, industry and consumer protection
institutions that will harmonize and safeguard their members interests, free from pernicious restraints and
practices;
(d) Institutionalize advisory councils with compositions that are representative of those affected in the
concerned industry, for the purpose of private sector participation in trade and industry policy formulation,
program implementation and evaluation;
(e) Assist the private sector in creating just and viable socio-economic structures in trade and industry conducive
to greater productivity and higher incomes through cooperative systems of production, processing, marketing,
distribution and credit services where applicable, especially among small and medium-scale enterprises;
(f) Support the development of timely, affordable and appropriate financing schemes for its constituencies;

36

(g) Undertake a thorough study of all trade and industry related laws and regulations for streamlining,
simplification and reorganization towards increased entrepreneurial activity and improved industrial
productivity.
SEC. 2. Mandate. The Department of Trade and Industry, hereinafter referred to as Department shall be the
primary coordinative, promotive, facilitative and regulatory arm of government for the countrys trade, industry
and investment activities. It shall act as catalyst for intensified private sector activity in order to accelerate and
sustain economic growth through: (a) a comprehensive industrial growth strategy, (b) a progressive and socially
responsible liberalization and deregulation program, and (c) policies designed for the expansion and
diversification of trade, both domestic and foreign.
SEC. 3. Powers and Functions. To fulfill its mandate the Department is hereby authorized to perform the
following powers and functions:
(a) Plan, implement and coordinate activities of the government related to trade, industry and investments;
(b) Promote, initiate, or conduct Annual Trade and Industry Development Planning Conferences between
government and the private sector, to be held at the beginning of the third quarter of the budget year;
(c) Build up and maintain the currency of the trade and industry data base of the Departments information
system through a continuing and well coordinated program of data search and information processing;
(d) Develop and maintain an integrated computerized marketing information system for trade, industry and
investments with a domestic and international scope;
(e) Encourage and support the formation of Peoples Economic Councils at regional, provincial and municipal
levels as well as other trade, industry and consumer protection institutions or associations;
(f) Formulate and implement programs to strengthen industries adversely affected by the economic crisis,
particularly those that have a good probability of attaining financial viability;
(g) Formulate plans and programs that shall encourage projects which effect dispersal of industries to the rural
areas, promote manufactured goods for export, and develop small and medium scale industries;
(h) Upgrade and develop the manufacture of local capital goods and precision machinery components;
(i) Formulate and administer policies and guidelines for the investment priorities plan and the delivery of
investment incentives;
(j) Assist the investment one-stop action center in pursuing the latters objective of providing under one roof all
investment assistance services of the government, in accordance with established policies and guidelines;
(k) Coordinate efforts in formulating long term industry sectoral plans with the private sector;
(l) Formulate the appropriate mechanics to guide and manage the transfer of appropriate industrial technology in
the country;
(m) Formulate country and product export strategies which will guide the export promotion and development
thrusts of the government;
(n) Implement programs and activities geared towards the overseas promotion of Philippine exports in overseas
markets;

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(o) Take the primary role in negotiating and reviewing existing international trade agreements, particularly those
affecting commodity quotas limiting existing exports of Philippine products to determine programs for
renegotiations of more favorable terms;
(p) Promote domestic trade, marketing and distribution to ensure the rational, economical and steady flow of
commodities from producing and/or marketing centers to areas in short supply;
(q) Promote, develop, regulate and accredit repair and service enterprises in accordance with existing laws,
Executive Order No. 709 (1981) notwithstanding;
(r) Formulate and implement regulations for the protection of industrial property rights and in particular, patents
and trademarks;
(s) After due notice and hearing, establish orderly marketing arrangements for locally produced and imported
manufactured goods, and for raw materials used by manufacturing and construction;
(t) Administratively adjudicate and impose reasonable fines and penalties for violation of existing trade and
industry laws;
(u) Prepare, for consideration of the Monetary Board, proposed programs in the commercial banking sector for
directing commercial lending facilities towards priority areas of commercial and industrial development, as well
as coordinate government direct funding and financial guarantee programs to achieve trade and industry growth;
(v) Create, in cooperation and coordination with the Department of Labor and Employment, a center which will
provide assistance to the public relative to industrial relations;
(w) Issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of the
necessary information, papers and documents which it may deem necessary in the exercise of its powers and
functions;
(x) Prescribe and enforce compliance with such rules and regulations as may be necessary to implement the
intent and provisions of this Executive Order, which rules and regulations shall take effect immediately
following their publication in two newspapers of general circulation in the Philippines;
(y) Perform such other functions as may be necessary or incidental in carrying into effect the provisions of this
Executive Order and as may be provided by law.
SEC. 4. Secretary of Trade and Industry. The authority and responsibility for the exercise of the mandate of the
Department and for the discharge of its powers and functions are hereby vested in the Secretary of Trade and
Industry, hereinafter referred to as Secretary, who shall be appointed by the President.
There is hereby created in the Office of the Secretary, the Office of Special Concerns to attend to matters that
require special attention, whether involving a matter that crosses several functional areas, demands urgent
action, or otherwise necessitates, in the Secretarys opinion, attention by a special group. To enable the Secretary
to accomplish said authority and responsibility and exercise said supervision and control, he shall perform the
following functions:
(a) Advise the President of the Philippines on matters related to trade, investments, and industry, and on the
promulgation of Department orders, rules, regulations and other issuances related to trade, industry and
investments;
(b) Establish policies and standards for the effective, efficient, and economical operations of the Department in
accordance with the programs of government;

38

(c) Promulgate rules and regulations necessary to carry out Department objectives, policies, plans, programs,
and projects;
(d) Exercise supervision and control over all offices, functions and activities of the Department;
(e) Delegate authority for the performance of any administrative or substantive function to any Undersecretary
or other officials of rank at the Department;
(f) Considering the complexities involved in matters of trade and industry, ensure the clear delineation of the
functions of the personnel and constituent units of the Department, including agencies attached to it, so as to
prevent duplications or overlapping thereof;
(g) Perform such other functions as may be provided by law or appropriately assigned by the President.
SEC. 5. Undersecretaries. The Secretary shall be assisted by five (5) Undersecretaries, who shall all be
appointed by the President upon the recommendation of the Secretary, by performing the following functions
within the respective area of responsibilities:
(a) Advise the Secretary in the promulgation of Department orders, administrative orders, and other issuances;
(b) Exercise supervision over the offices, services, operating units and individuals under their authority and
responsibility;
(c) Formulate office rules and regulations, consistent with those of the Department policies, that will effectively
implement the activities of operating units under their authority and responsibility;
(d) Coordinate the functions and activities of the units under their authority with those of the other
Undersecretaries;
(e) Exercise delegated authority on substantive and administrative matters related to the functions and activities
of agencies under their office to the extent granted by the Secretary through administrative issuances;
(f) Perform other functions as may be provided by law or appropriately assigned by the Secretary.
SEC. 6. Assistant Secretaries. The Secretary shall also be assisted by five (5) Assistant Secretaries who shall be
appointed by the President upon the recommendation of the Secretary. The Secretary is hereby authorized to
delineate and assign the respective areas of functional responsibility of the Assistant Secretaries. Within his
functional area of responsibility, an Assistant Secretary shall assist the Secretary and the Undersecretaries in the
formulation, determination and implementation of laws, policies, plans, programs and projects on trade and
industry and shall oversee the day-to-day administration of the constituent units of the Department.
SEC. 7. Structural Organization. The Department shall consist of the Department Proper, National Service
Centers, Regional Offices and Line Corporate Agencies and Government Entities.
SEC. 8. Staff Bureaus and Services. The Bureaus and Service Units shall be responsible for research,
formulation of policy, development of standards, framing of rules and regulations, program formulation and
program monitoring, related to the concerns covered by the Departments mandate, powers, and functions.
Implementation of such policies, standards, rules and regulations, and programs shall be the responsibility of the
Departments Line Operating Units.
SEC. 9. Department Line Operating Units. The Department Line Operating Units shall be composed of the
following:

39

(a) Regional Offices. These are offices which shall be located in the National Capital Region and each of the
twelve (12) other administrative regions of the country. They shall be operated and maintained on a Departmentwide basis, acting as implementing arms in the regions under their jurisdiction, of the Departments policies,
programs, rules and regulations as well as those laws which the Department is mandated to enforce.
(b) National Service Centers. These are organic units of the Department, as well as government-owned and
controlled corporations under the administrative supervision of the Department which are deemed to be integral
parts of the Department structure notwithstanding their organizational form, and which perform extension or
assistance services to the private sector, the benefits of which transcend the boundaries of regional jurisdictions.
(c) Line Corporate Agencies and Government Entities. These are the government entities and the governmentowned or controlled corporations under the administrative supervision of the Department which are deemed to
be integral parts of the Department structure notwithstanding their organizational form, and which perform a
focal and implemental role in the Departments programs for the development of trade, industry and
investments.
SEC. 10. Department Proper. The Department Proper shall be composed of the following Offices, Bureaus, and
Services:
(a) Office of the Secretary: Office of Policy Research; Office of Operational Planning; Office of Legal Affairs;
Human Resource Development Service; General Administrative Service; Management Information Service;
Financial Management Service; Public Relations Office; Trade and Investment Information Center; and
National Industrial Manpower Training Council. The aforementioned Offices and Services within the Office of
the Secretary shall be supervised by the Undersecretary for Policy Planning and Support Services;
(b) Office of the Undersecretary for Industry and Investments: Board of Investments; Export Processing Zone
Authority; Bureau of Small and Medium Business Development; Bureau of Import Services; Iron and Steel
Authority; Construction Industry Authority of the Philippines;
(c) Office of the Undersecretary for Domestic Trade: Bureau of Patents, Trademarks, and Technology Transfer;
Bureau of Trade Regulation and Consumer Protection; Bureau of Domestic Trade Promotion; Bureau of Product
Standards; Videogram Regulatory Board;
(d) Office of the Undersecretary for International Trade: Bureau of Export Trade Promotion; Bureau of
International Trade Relations; Philippine International Trading Corporation; Garments and Textile Export
Board; International Coffee Organization Certifying Agency; Foreign Trade Service Corps; Center for
International Trade Expositions and Missions; Bonded Export Marketing Board; Philippine Shippers Council;
Philippine Trade Training Center; Product Development and Design Center of the Philippines;
(e) Office of the Undersecretary for Regional Operations: Office for Luzon Operations; Office for Visayas
Operations; Office for Mindanao Operations.
SEC. 11. Office of the Secretary. The Office of the Secretary shall consist of the Secretary, his immediate staff,
the Undersecretary for Policy Planning and Support Services, and the Offices and Services directly supportive
of the Office of the Secretary. The functions of the foregoing shall be:
(a) The Undersecretary for Policy Planning and Support Services shall supervise the Office of Policy Research,
the Office of Operational Planning, the Office of Legal Affairs, the Human Resource Development Service, the
General Administrative Service, the Management Information Service, the Financial Management Service and
the Public Relations Office;
(b) The Office of Policy Research shall coordinate and help formulate general trade and industry policies for the
Department; evaluate the effectiveness of trade and industry programs as such, and their implementation by the
Departments Line Operating Units; and research on trade and industry issues for policy analysis and
formulation;

40

(c) The Office of Operational Planning shall develop operating plans, programs and projects of the Department
as such: supervise the Annual Trade and Industry Development Planning Conferences between government and
the private sector; evaluate the cost-effectiveness of various projects and activities of the Department;
coordinate the updating of the Departments operating plans in response to relevant environment changes;
review the Departments performance against standards and targets previously established; and provide staff
services related to the development, monitoring, reporting and assessment of foreign assisted projects of the
Department;
(d) The Office of Legal Affairs shall provide the Secretary with legal advice on all policy, program, and
operational matters of the Department; serve as Counsel for the Department in cases in which it is a party;
handle administrative cases against Department personnel and submit recommendations pertaining thereto; and
review legislative proposals;
(e) The Human Resource Development Service shall design and implement human resource development plans
and programs for the personnel of the Department; provide for present and future manpower needs of the
organization; maintain high morale and favorable employee attitudes towards the organization through the
continuing design and implementation of employee development programs;
(f) The Financial Management Service shall formulate and manage a financial program to ensure availability
and proper utilization of funds; provide for an effective monitoring system of the financial operations of the
Department;
(g) The General Administrative Service shall provide services relative to procurement and allocation of supplies
and equipment, transportation, messengerial work, cashiering, payment of salaries and other Department
obligations, office maintenance, property safety and security, and other utility services; and comply with
government regulatory requirements in the areas of performance appraisal, compensation and benefits,
employment records and reports;
(h) The Management Information Service shall design and implement a comprehensive management
information system, both computerized and manual, for the Department; provide technical assistance to the
various information generating units within the Department; and establish data exchange linkages with public
and private agencies whenever feasible;
(i) The Public Relations Office shall perform the Departments public relations function; provide a two-way
flow of information between the Department and its constituencies; and coordinate the Secretarys regular press
conferences and the Departments relations with the mass media;
(j) The Trade and Investment Information Center shall, as the primary information arm of the Department,
design and operate a computerized system of collection, documentation, storage, retrieval, and timely
dissemination of comprehensive and relevant information on trade, industry, and investment for use by other
government agencies and the business sector; coordinate and monitor the information campaigns on the
Departments services, programs, and projects; develop a communications program to promote Philippine
investment opportunities and the countrys export products which shall be directed at foreign audiences; and
provide creative services to other units of the Department in support of their own information programs;
(k) The National Industrial Manpower Training Council shall act as the umbrella agency to coordinate and
operate the Cottage Industry Technology Centers, the Construction Manpower Development Foundation, and
the Construction Manpower Development Center and perform other functions such as initiating specialized
industrial training centers identifying supply-demand factors and industrial skills subject to the direction
formulated by the National Manpower and Youth Council.
SEC. 12. Office of the Undersecretary for Domestic Trade. The Office of the Undersecretary for Domestic Trade
shall include all the staff bureaus and services involved in policy formulation, standards development, programs
development, and program monitoring of the development, regulatory, and service delivery programs pertinent

41

to domestic trade and commerce being implemented by the Departments line operating units. The
Undersecretary for Domestic Trade shall supervise the following:
(a) Bureau of Trade Regulation and Consumer Protection. This Bureau shall review the products contained in
the critical imports list in accordance with established national standards or relevant international standards and
buyer-seller specifications; promulgate rules and regulations necessary for the countrys shift to the international
system of units; formulate and monitor the implementation of programs for the effective enforcement of laws,
correct interpretation and adoption of policies on monopolies and restraint of trade, mislabelling, product
misrepresentation and other unfair trade practices; monitor the registration of business names and the licensing
and accreditation of establishments and practitioners; protect and safeguard the interest of consumers and the
public, particularly the health and safety implications of intrinsic product features, product representation, and
the like; and establish the basis for evaluating consumer complaints and product utility failures.
(b) Bureau of Domestic Trade Promotion. This Bureau shall prepare and monitor the implementation of plans
and programs directed at the promotion and development of domestic trade, particularly in the area of efficiency,
fairness and balance in the distribution of essential products and services and in the strengthening of the
domestic base for export activities; conceptualize, monitor, and evaluate programs, plans and projects intended
to create awareness of domestic marketing opportunities for new projects, new technologies and investments.
(c) Bureau of Patents, Trademarks, and Technology Transfer. This Bureau shall examine applications for grant
of letters, patent for inventions, utility models and industrial designs, and the subsequent grant or refusal of the
same; register trademarks, tradenames, service marks and other marks of ownership; hear and adjudicate
contested proceedings affecting rights to patents and trademarks; receive, process for registration and evaluate
technology transfer arrangements as to their appropriateness and need for the technology or industrial property
rights, reasonableness of the technology payment, and for the prohibition of restrictive business clauses; and
publish regularly in its own publication the patents and trademarks issued and approved by it.
(d) Bureau of Product Standards. This Bureau shall study and/or research on the various reference materials to
be used as basis for the start of whatever analysis or evaluation is demanded by the products under examination
or investigation; establish standards for all products of the Philippines for which no standards have as yet been
fixed by law, executive order, rules and regulations and which products are not covered by the standardization
activities of other government agencies; participate actively in international activities on standardization, quality
control and metrology; ensure the manufacture, production, and distribution of quality products for the
protection of consumers; test and/or analyze standardized and unstandardized products for purposes of product
standard formulation and certification; extend technical assistance to producers to improve the quality of their
products; check length, mass and volume measuring instruments; and maintain consultative liaison with the
International Organization for Standardization, Pacific Area Standards Congress, and other international
standards organizations.
(e) Videogram Regulatory Board. This Board shall regulate videogram establishments; prevent unfair practices,
unfair competition, pirating of legitimately produced video products, and other deceptive, unfair and
unconscionable acts and practices to protect the viewing public and the general public.
SEC. 13. Office of the Undersecretary for International Trade. The Office of the Undersecretary for International
Trade shall include all the units involved in policy formulation, standards development, program development,
and program monitoring of the development, regulatory, and service delivery programs of the Department
pertinent to international trade and commerce being implemented by the Departments line operating units. The
Undersecretary for International Trade shall supervise the following:
(a) Bureau of International Trade Relations. This Bureau shall be the primary agent responsible for all matters
pertaining to foreign trade relations, whether bilateral, regional or multilateral, especially market access and
market access related matters; formulate positions and strategies for trade negotiations, consultations and
conferences as well as supervise trade negotiations, consultations and conferences; coordinate with other
Departments and agencies of the Philippine government with the view of assuring consistency in the
governments positions in trade negotiations and on other activities pertaining to foreign trade relations; consult

42

with industry groups and provide technical advice and information on the above matters and activities; identify
tariff and non-tariff barriers affecting products of export interest to the Philippines, and negotiate measures for
liberalizing them at bilateral, regional and multilateral fora; and evaluate and submit recommendations on
existing and proposed commercial policies of the Philippines;
(b) Bureau of Export Trade Promotion. This Bureau shall formulate and monitor programs, plans, and projects
pertinent to the development, promotion, and expansion of the foreign trade of the Philippines; formulate
country and product export strategies; conduct research on new product development and adaptation
opportunities in the export markets, as well as identify the domestic supply base for such products; prepare
situation reports on all export production; prepare and update country and regional market profiles; maintain an
integrated information system on all aspects of the products and commodities relevant to export marketing;
formulate, plan, supervise, coordinate and monitor the implementation of both private and official incoming and
outgoing missions, and review the results of such; promote and coordinate international subcontracting
arrangements between and among foreign and Philippine investors whereby production operations and facilities
may be located in the Philippines; formulate and monitor the implementation of policies and guidelines for the
registration and certification of bona fide exporters eligible for the various export incentive programs of the
Philippines; and review and identify appropriate measures to minimize or deregulate export-import procedures
and other foreign trade laws necessary to stimulate the international marketing of Philippine products;
(c) Foreign Trade Service Corps. This Corps shall assist Philippine businessmen, producers, and exporters with
marketing information, project development support, and liaison with foreign government agencies; develop
marketing and commercial intelligence for dissemination to Philippine businessmen through the Trade and
Investment Information Center; provide direct support to the Departments overseas promotional programs;
assist Philippine businessmen handle trade complaints against foreign firms and governments; support
Department units in import and export administration, monitoring of trade agreements, and investments
promotion; and be accountable for established foreign investment and export targets for their respective areas of
responsibility;
(d) Center for International Trade Expositions and Missions. This Center shall organize official participation in
foreign trade fairs, exhibitions, and expositions, in accordance with the trade promotion program of the
Department; prepare, review, and approve the exhibit plans and designs for official participation in foreign trade
fairs, expositions, and exhibitions and where necessary, contract professional consulting services such as display
designers and advertising; supervise the selection, collection, and shipment of display products and materials for
use in such official participation; implement Department policies and guidelines for servicing all incoming
missions and the conduct of all outgoing missions that are related to international trade fairs and exhibitions;
organize official outgoing missions related to international trade fairs and exhibitions; and assist privately
organized outgoing missions related to international trade fairs and exhibitions;
(e) Bonded Export Marketing Board. This Board shall promote the establishment of bonded manufacturing and
trading facilities for the re-export of those products where a clear net value added may be generated based on the
emerging comparative advantage of the Philippine export industry; study and analyze the international market
for specific products where the Philippines has or can develop a comparative advantage; recommend to the
Bureau of Customs the licensing of bonded manufacturing facilities and monitor all bonded manufacturing sites,
with the objective of ensuring operational efficiency; identify and designate sites where export bonded
manufacturing sites shall be located with a view of dispersal to the regions; and initiate studies on the
development and maintenance of the countrys competitive advantage in export products;
(f ) Philippine Shippers Council. This Council shall represent Philippine shippers in international liner
conferences and negotiate in their behalf, for more favorable freight and shipping rates; evaluate and issue
waivers to the use of Philippine flag carriers; and provide assistance and information to Philippine shippers,
specially exporters, in matters related to shipping;
(g) Philippine Trade Training Center. This Center shall develop training modules on export and import
techniques and procedures; raise the level of awareness of Philippine businessmen of export opportunities and
the availability of alternative sources of import products or diversified markets for exports; offer specialized

43

courses for specific industry group directed at overcoming barriers to overseas market penetration; and conduct
training programs in international trade practices, inspection techniques and exhibition mounting;
(h) Product Development and Design Center of the Philippines. This Center shall provide product identification,
research, and development services to the private sector; conduct seminars and workshops on product design
and development; set up design exhibitions; publish product design related materials; and conduct continuing
research on product and product packaging design trends and processing technologies.
SEC. 14. Office of the Undersecretary for Industry and Investments. The Office of the Undersecretary for
Industry and Investments shall supervise all agencies involved in the formulation and implementation of
programs and projects pertinent to the development of domestic industries and the promotion of investments in
activities or enterprises critical to the Departments trade and industry development program. Such agencies are
enumerated in Section 10 (b). The functions of the two (2) bureaus are described below; while the functions and
organizations of the other agencies are respectively described and treated in Sections 16 and 18 of this Executive
Order:
(a) Bureau of Small and Medium Business Development. This Bureau shall formulate and monitor development
programs for private institutions involved in assisting the trade and industry sector, delivery mechanisms and
linkages for marketing, financial and sub-contracting services, and development programs for livelihood and
micro, small and medium enterprises.
(b) Bureau of Import Services. This Bureau shall monitor import levels and prices, particularly liberalized items;
analyze and forecast import levels; analyze and publish import return statistics; perform annual review of the
substantive components of the Philippine Tariff System and submit recommendations thereon; perform such
other functions on import transactions as the President and/or the Central Bank of the Philippines shall delegate
or authorize; and ensure that the Departments views on goods under the jurisdiction of other Departments are
taken into consideration.
SEC. 15. Office of the Undersecretary for Regional Operations. The Office of the Undersecretary for Regional
Operations shall exercise supervision and control over the Departments Regional Offices, described in Section
9 (a) of this Executive Order. It shall be responsible for the field operations of the Department, ensuring the full
compliance with Department policies, rigorous implementation of Department rules and regulations, and the
proper implementation of Department plans and programs by the Regional Offices in their respective
administrative jurisdictions.
SEC. 16. Line Corporate Agencies and Government Entities. The following are the Line Corporate Agencies
and Government Entities, defined in Section 9 (c) of this Executive Order that will perform their specific
regulatory functions, particular developmental responsibilities, and specialized business activities in a manner
consonant with the Departments mandate, objectives, policies, plans, and programs:
(a) National Development Company. This Company shall promote investments in or establish enterprises for the
express purposes of encouraging the private sector to follow suit by proving the financial viability of such
enterprises; or of filling critical gaps in the input-output structure of Philippine commerce and industry when the
private sector is unwilling or unable to engage in such enterprises because of the magnitude of investments
required or the risk complexion of the undertaking.
(b) Garments and Textile Export Board. This Board, which shall be supervised by the Undersecretary for
International Trade, shall oversee the implementation of the garment and textile agreements between the
Philippines and other countries, particularly garments and textiles quotas; approve quota allocations and export
authorizations; issue export licenses and adopt appropriate measures to expedite their processing; provide the
necessary information and statistics relating to the administration of garments and textiles export quotas and the
flow of garments and textiles exports for monitoring purposes and for negotiations with other countries;
implement rules and regulations for the administration of all international textile agreements entered into
between the Philippines and importing countries; and fix and collect reasonable fees for the issuance of export

44

quotas, export authorizations, export licenses, and other related services, in accordance with the Department
policies, rules and regulations.
(c) International Coffee Organization Certifying Agency. This Agency, which shall be supervised by the
Undersecretary for International Trade, shall oversee the implementation of the coffee agreements between the
Philippines and other countries, particularly coffee quotas.
(d) Philippine International Trading Corporation. This Corporation, which shall be supervised by the
Undersecretary for International Trade, shall only engage in both export and import trading on new or nontraditional products and markets not normally pursued by the private business sector; provide a wide range of
export oriented auxiliary services to the private sector; arrange for or establish comprehensive systems and
physical facilities for handling the collection, processing, and distribution of cargoes and other commodities;
monitor or coordinate risk insurance services for existing institutions; promote or organize, whenever warranted,
production enterprises and industrial establishments and collaborate or associate in joint venture with any
person, association, company, or entity, whether domestic or foreign, in the fields of production, marketing,
procurement, and other related businesses; and provide technical, advisory, investigatory, consultancy, and
management services with respect to any and all of the functions, activities, and operations of the corporation.
(e) Board of Investments. This Board, which shall be supervised by the Undersecretary for Industry and
Investments shall be responsible for coordinating the formulation and implementation of short, medium and
long term industrial plans as well as promoting investments in the Philippines in accordance with national
policies and priorities; register, monitor, and grant investment incentives to individual enterprises; formulate
policies and guidelines aimed at creating an environment conducive to the expansion of existing investments or
attracting prospective investments in the Philippines: Provided, That the Board shall place primary emphasis on
its promotive functions.
(f) Export Processing Zone Authority. This Authority which shall be supervised by the Undersecretary for
Industry and Investments, shall develop and manage export processing zones, in consonance with Department
policies and programs.
SEC. 17. Regional Offices. The Department is hereby authorized to establish, operate and maintain a
Department-wide regional office in each of the countrys administrative regions. Each Regional Office shall be
headed by a Regional Director who shall be assisted by an Assistant Regional Director. A Regional Office shall
have, within its administrative region, the following functions:
(a) Implement pertinent laws, and the rules, regulations, policies, plans, programs and projects of the
Department;
(b) Provide efficient and effective service to the people;
(c) Coordinate with the regional offices of other departments, offices and agencies in the region;
(d) Coordinate with the local government units;
(e) Perform other functions as may be provided by law or appropriately assigned by the Secretary.
SEC. 18. Organizational Changes. The following organizational changes shall apply to the various agencies
enumerated hereunder:
(a) The Bureau of Industrial Development is hereby abolished and its powers and functions transferred to the
appropriate units of the Department.
(b) The Philippine Cement Industry Authority, the Commission for Heavy Engineering Industries, and the
Presidential Advisory Committee on the Copper Industry are hereby abolished. Their policy formulation and

45

planning functions are hereby transferred to the Board of Investments and their implementing functions are
transferred to the pertinent line operating units of the Department.
(c) The Construction Industry Authority of the Philippines and the Iron and Steel Authority are hereby retained
as attached agencies of the Department: Provided, That these Authorities shall review annually the capability
and trustworthiness of the entities accredited by it.
(d) The Construction Manpower Development Center and the Construction Manpower Development Foundation
are transferred to the National Industrial Manpower Training Council.
(e) The National Cottage Industries Development Authority is hereby reorganized into the Cottage Industry
Technology Center and its functions other than technology development and training, are hereby transferred to
the Bureau of Small and Medium Business Development and relevant line operating units of the Department.
(f) The Price Stabilization Council is hereby abolished, but its powers and functions may be exercised by the
Secretary of Trade and Industry in emergency situations as the Secretary deems appropriate.
(g) The Philippine Patents Office is hereby converted into the Bureau of Patents, Trademarks and Technology
Transfer.
(h) The Technology Transfer Board is hereby abolished and its powers and functions transferred to the Bureau
of Patents, Trademarks and Technology Transfer and the appropriate line operating units of the Department.
(i) The Bureau of Domestic Trade is hereby abolished and its appropriate powers and functions are hereby
transferred to the Bureau of Trade Regulation and Consumer Protection and the Bureau of Domestic Trade
Promotion, respectively.
(j) The Bureau of Foreign Trade is hereby abolished and its appropriate powers and functions are hereby
transferred to the Bureau of Export Trade Promotion and the Bureau of Import Services, respectively.
(k) The Bureau of Small and Medium Industries is hereby reorganized as the Bureau of Small and Medium
Business Development.
(l) The Trade and Industry Information Center is hereby reorganized as the Trade and Investment Information
Center.
(m) The Planning Service is hereby reorganized as the Office of Operational Planning.
(n) The Legal Service is hereby reorganized as the Office of Legal Affairs.
(o) The Administrative Service is hereby reorganized as the General Administrative Service.
(p) The Financial and Management Service is hereby reorganized as the Financial Management Service.
(q) The Product Standards Agency is hereby reorganized as the Bureau of Product Standards.
(r) The Public Relations Office, the Human Resource Development Service and the Management Information
Service are hereby created.
(s) The NDC-Nacida Raw Materials Corporation is hereby abolished, and its powers and functions transferred to
the appropriate units of the Department.
(t) The Metals Industry Research and Development Center is hereby transferred to the National Science and
Technology Authority: Provided, however, That the transfer shall be covered by a memorandum of agreement

46

defining the relationship of the Department and the Center and the manner by which equipment and resources
shall be accessed, and that the investment and trade promotion aspects pertaining to the metals industry are
recognized to be the functions of the Department in cooperation with the National Science and Technology
Authority.
(u) The Philippine Textile Research Institute is hereby transferred to the National Science and Technology
Authority: Provided,however, That the transfer shall be covered by a memorandum of agreement defining the
relationship of the Department and the Institute and the manner by which equipment and resources are
accessed: Provided, further, That the investment and trade promotion aspects pertaining to the textile industry
are recognized to be the functions of the Department in cooperation with the National Science and Technology
Authority.
(v) The Philippine Trade Exhibition Center is hereby merged with the Center for International Trade Expositions
and Missions, with the latter as the surviving entity.
(w) The Trade Policy Office is hereby reorganized as the Bureau of International Trade Relations.
(x) The Videogram Regulatory Board is hereby attached to the Department.
(y) The Design Center of the Philippines is hereby reorganized into the Product Development and Design Center
of the Philippines.
SEC. 19. Transitory Provisions. In accomplishing the acts of reorganization herein prescribed, the following
transitory provisions shall be complied with, unless otherwise provided elsewhere in this Executive Order.
(a) The transfer of functions which results in the abolition of the government unit that has exercised them shall
include the appropriations, funds, records, equipment, facilities, other assets and personnel as may be necessary
to the proper discharge of the transferred functions. The abolished units remaining appropriations and funds, if
any, shall revert to the General Fund and its remaining assets, if any, shall be allocated to such appropriate units
as the Secretary shall determine or shall otherwise be disposed of in accordance with the Government Auditing
Code and other pertinent laws, rules and regulations. Its liabilities, if any, shall likewise be treated in accordance
with the Government Auditing Code and other pertinent laws, rules and regulations. Its personnel, shall, in a
hold-over capacity, continue to perform their duties and responsibilities and receive the corresponding salaries
and benefits: Provided, That the personnel, whose positions are not included in the Departments new position
structure and staffing pattern approved and prescribed by the Secretary under Section 21 hereof or who are not
reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided for under
the second paragraph of the same Section 21.
(b) The transfer of functions which does not result in the abolition of the government unit that has exercised
them shall include the appropriations, funds, records, equipment, facilities, other assets and personnel as may be
necessary to the proper discharge of the transferred functions. The liabilities, if any, that may have been incurred
in connection with the discharge of the transferred functions, shall be treated in accordance with the
Government Auditing Code and other pertinent laws, rules and regulations. Its personnel shall, in a hold-over
capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries
and benefits: Provided, That the personnel, whose position is not included in the Departments new position
structure and staffing pattern approved and prescribed by the Secretary under Section 21 hereof or who has not
been reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided for
under the second paragraph of the same Section 21.
(c) In case of merger or consolidation of government units, the new or surviving unit shall exercise the functions
(subject to the reorganization herein prescribed and the laws, rules and regulations, pertinent to the exercise of
such functions) and shall acquire the appropriations, funds, records, equipment, facilities, other assets, liabilities
if any, and personnel of (1) the units that compose the merged unit or ( 2 ) the absorbed unit, as the case may be.
Its personnel shall, in a hold-over capacity, continue to perform their respective duties and responsibilities and
receive the corresponding salaries and benefits: Provided, That any personnel, whose position is not included in

47

the Departments new position structure and staffing pattern approved and prescribed by the Secretary under
Section 21 hereof or who is not reappointed, shall be deemed separated from the service and shall be entitled to
the benefits provided under the second paragraph of the same Section 21.
(d) The transfer of a government unit shall include the functions, appropriations, funds, records, equipment
facilities, if any, of the transferred unit as well as the personnel thereof, as may be necessary, who shall, in a
hold-over capacity, continue to perform their respective duties and responsibilities and receive the
corresponding salaries and benefits: Provided, That the personnel of the transferred unit whose positions are not
included in the new position structure and staffing pattern approved and prescribed by the Secretary or who are
not reappointed shall be deemed separated from the service and shall be entitled to the benefits provided under
the second paragraph of Section 21 hereof.
(e) In case of termination of a function which does not result in the abolition of the government unit which has
performed such function, the appropriations and funds intended to finance the discharge of such function shall
revert to the General Fund, while the records, equipment, facilities, choses in action, rights and other assets used
in connection with the discharge of such function shall be allocated to the appropriate units as the Secretary
shall determine or shall otherwise be disposed in accordance with the Government Auditing Code and other
pertinent laws, rules and regulations. The personnel who have performed such functions, whose positions are
not included in the new position structure and staffing pattern approved and prescribed by the Secretary under
Section 21 hereof or who have not been reappointed, shall be deemed separated from the service and shall be
entitled to the benefits provided under the second paragraph of the same Section 21.
(f) In case of the abolition of a government unit which does not result in the transfer of its functions to another
unit, the appropriations and funds of the abolished unit shall revert to the General Fund, while the records,
equipment, facilities, choses in action, rights, and other assets thereof shall be allocated to such appropriate units
as the Secretary shall determine. The liabilities of the abolished unit shall be treated in accordance with the
Government Auditing Code and other pertinent laws, rules and regulations, while the personnel thereof, whose
position is not included in the Departments new position structure and staffing pattern approved and prescribed
by the Secretary under Section 21 hereof or who has not been reappointed, shall be deemed separated from the
service and shall be entitled to the benefits provided under the second paragraph of the same Section 21.
SEC. 20. Funding. Funds needed to carry out the provisions of this Executive Order shall be taken from funds
available in the Department.
SEC. 21. New Structure and Pattern. Upon approval of this Executive Order, the officers and employees of the
Department and agencies attached to it, shall, in a hold-over capacity, continue to perform their respective duties
and responsibilities and receive the corresponding salaries and benefits.
The new position structures and staffing pattern of the Department and agencies attached to it, shall be approved
and prescribed by the Secretary within one hundred twenty (120) days from the approval of this Executive
Order and the authorized positions created thereunder shall be filled with regular appointments by him or by the
President, as the case may be. Those incumbents whose positions are not included therein or who are not
reappointed shall be deemed separated from the service. Those separated from the service shall receive the
retirement benefits to which they may be entitled under existing laws, rules and regulations. Otherwise, they
shall be paid the equivalent of one-month basic salary for every year of service, or the equivalent nearest
fraction thereof favorable to them on the basis of highest salary received, but in no case shall such payment
exceed the equivalent of twelve (12) months salary.
SEC. 22. Periodic Performance Evaluation. The Secretary is hereby required to formulate and enforce a system
of measuring and evaluating periodically and objectively the performance of the Department and submit the
same annually to the President.
SEC. 23. Notice or Consent Requirement. If any reorganizational change herein authorized is of such substance
or materiality as to prejudice third persons with right recognized by law or contract such as notice to or consent
of creditors is required to be made or obtained pursuant to any agreement entered into with any of such

48

creditors, such notice or consent requirement shall be complied with prior to the implementation of such
reorganizational change.
SEC. 24. Prohibition Against Change. No change in the reorganization herein prescribed shall be valid except
upon prior approval of the President for the purpose of promoting efficiency and effectiveness in the delivery of
public services.
SEC. 25. Implementing Authority of the Secretary. The Secretary shall issue such rules, regulations and other
issuances as may be necessary to ensure the effective implementation of the provisions of this Executive Order.
SEC. 26. Separability. Any portion or provision of this Executive Order that may be declared unconstitutional
shall not have the effect of nullifying other portions or provisions hereof as long as such remaining portions or
provisions can still subsist and be given effect in their entirety.
SEC. 27. Repealing Clause. All laws, ordinances, rules, regulations, other issuances or parts thereof, which are
inconsistent with this Executive Order, are hereby repealed or modified accordingly.
SEC. 28. Effectivity. This Executive Order shall take effect immediately upon its approval.
APPROVED in the City of Manila, Philippines, this 27th day of February, in the Year of Our Lord, Nineteen
Hundred and Eighty-Seven.
(Sgd.) CORAZON C. AQUINO
By the President:
(Sgd.) JOKER P. ARROYO
Executive Secretary

MALACAANG
MANILA

49

EXECUTIVE ORDER NO. 60


CREATING THE INTER-AGENCY COMMITTEE
ON INTELLECTUAL PROPERTY RIGHTS
WHEREAS, Intellectual Property Rights patents, trademarks and copyrights have gained universal
importance because of the important role technology plays in influencing international economics and trade;
WHEREAS, government policies related to Intellectual Property Rights would have far-reaching economic
implications on our trade relations with our trading partners;
WHEREAS, the recognition and adequate protection of the rights of inventors, authors, and trademarks owners
should enhance the economic environment needed to attract foreign investments;
WHEREAS, it is the policy of the Government to protect intellectual properties against infringements, piracy
and counterfeiting;
WHEREAS, there is a pressing need to have close coordination among government agencies responsible for the
protection of intellectual property rights;
WHEREAS, there is a pressing need to come up with concerted efforts in the policy formulation of the
Government in order to effectively combat piracy and counterfeiting of intellectual property rights;
WHEREAS, the Government is now currently in the process of evaluating its present laws on intellectual
property rights in consonance with its multilateral and bilateral commitments;
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the Philippines, by virtue of the
powers vested in me by law, do hereby order:
Section 1. Organization. There is hereby created an Inter-Agency Committee on Intellectual Property Rights
(hereinafter called the Committee) under the Office of the President.
Section 2. Composition. The Committee shall be composed of the Secretary of Trade and Industry, as
Chairman, the Secretary of Justice and Secretary of Finance as Vice-Chairman, and the following as Members:
the Chief Presidential Legal Counsel, the Director of the National Bureau of Investigation, the Chief of the
Philippine National Police, the Commissioner of the Bureau of Customs, the Chairman of the Videogram
Regulatory Board, the Commissioner of the National Telecommunications Commission, the Chief of the
Copyright Office of the National Library, the Director of the Bureau of Patents, Trademarks and Technology
Transfer, the Director of the Bureau of Trade Regulations and Consumer Protection, and one representative each
from two major non-government organizations involved in the protection and promotion of intellectual property
rights to be determined by the Committee.
Section 3. Powers and Functions. The Committee shall have the following powers and functions:
a. Recommend policies and coordinate the policy making process in the Executive Branch of the Government
vis-a-vis protection and enforcement of intellectual property rights;
b. Coordinate with the different agencies of the Executive, Legislative and Judicial Branches of the Government
in order to effectively address the problem areas arising from infringement and counterfeiting of intellectual
property rights;
c. Enlist the assistance of any branch, department, bureau, office, agency or instrumentality of the Government,
including government-owned and controlled corporations, in the anti-piracy and counterfeiting drive, which
may include the use of its personnel, facilities and resources for a more resolute prevention, detection and

50

investigation of violations of laws enumerated in paragraph (d) hereof, and prosecution of criminal and
administrative cases;
d. Cause and direct the immediate investigation and speedy prosecution of cases involving violations of
copyright, trademarks, patents and other intellectual property related laws or such intellectual property theftrelated cases that is referred to the Committee;
e. Recommend the transfer of a case involving violations of the laws or statutes detailed in paragraph (d) hereon
from any law enforcement agency or prosecution office, as the Committee may deem proper and necessary, in
the interest of efficient and expeditious dispensation of criminal justice, and monitor for speedy resolution such
cases under investigation or prosecution as the case may be, by the appropriate operating or implementing
agency herein provided;
f. Refer, as the Committee may deem proper and for the same reasons stated in the preceding paragraph, to the
appropriate law enforcement agency or prosecution office, the investigation or prosecution, as the case may be,
of any of the cases adverted to in paragraph (d) hereof;
g. Monitor the progress of on-going investigation and prosecution of cases taken cognizance of by the
Committee;
h. Prepare and implement a fast-track anti-piracy and counterfeiting plan of action and adopt appropriate
strategies and measures to ensure an effective and efficient anti-piracy and counterfeiting program, and public
adherence to and compliance with all domestic and international laws for the protection of intellectual property
rights;
i. Coordinate with the appropriate government agencies and non-governmental organizations an information
dissemination campaign on intellectual property rights and the measures that have to be adopted to address the
issues.
j. Recommend appropriate intellectual property rights issuances and legislation to the President and Congress;
k. Consider the granting of monetary rewards and incentives to informants who are willing to give vital
information to build up cases for the prosecution of criminal offenders as provided under existing laws; and
l. Perform such other functions necessary in the pursuance of its objectives.
Section 4. Technical and Administrative Staff. The Committee shall organize its Secretariat under the Office
of the Secretary of Trade and Industry to be headed by an Executive Officer designated by the Chairman.
Section 5. Funding. The Committee shall, upon the recommendation of the Chairman, be provided with an
initial budget to be determined and approved by the President. Appropriations for the succeeding years shall be
incorporated in the budget proposals under the Office of the President.
Section 6. Operating Guidelines. The Committee shall adopt such operating guidelines as may be necessary to
implement this Executive Order.
Section 7. Effectivity. This Executive Order shall take effect immediately.
DONE in the City of Manila, this 26th day of February in the year of Our Lord, Nineteen Hundred and NinetyThree.
(Sgd.) FIDEL V. RAMOS

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By the President:
(Sgd.) ANTONIO T. CARPIO
Chief Presidential Legal Counsel

Republic Act No. 8293

June 6, 1997

AN ACT PRESCRIBING THE INTELLECTUAL PROPERTY CODE AND ESTABLISHING THE


INTELLECTUAL PROPERTY OFFICE, PROVIDING FOR ITS POWERS AND FUNCTIONS, AND
FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
PART I
THE INTELLECTUAL PROPERTY OFFICE
Section 1. Title. - This Act shall be known as the "Intellectual Property Code of the Philippines."
Section 2. Declaration of State Policy. - 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. (n)
Section 3. International Conventions and 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. (n)
Section 4. Definitions. - 4.1. The term "intellectual property rights" consists of:
a) Copyright and Related Rights;
b) Trademarks and Service Marks;
c) Geographic Indications;
d) Industrial Designs;
e) Patents;
f) Layout-Designs (Topographies) of Integrated Circuits; and
g) Protection of Undisclosed Information (n, TRIPS).

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4.2. The term "technology transfer arrangements" refers to contracts or agreements involving the transfer of
systematic knowledge for the manufacture of a product, the application of a process, or rendering of a service
including management contracts; and the transfer, assignment or licensing of all forms of intellectual property
rights, including licensing of computer software except computer software developed for mass market.
4.3. The term "Office" refers to the Intellectual Property Office created by this Act.
4.4. The term "IPO Gazette" refers to the gazette published by the Office under this Act. (n)
Section 5. Functions of the Intellectual Property Office (IPO). - 5.1. To administer and implement the State
policies declared in this Act, there is hereby created the Intellectual Property Office (IPO) which shall have the
following functions:
a) Examine applications for grant of letters patent for inventions and register utility models and
industrial designs;
b) Examine applications for the registration of marks, geographic indication, integrated circuits;
c) 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;
d) Promote the use of patent information as a tool for technology development;
e) Publish regularly in its own publication the patents, marks, utility models and industrial designs,
issued and approved, and the technology transfer arrangements registered;
f) Administratively adjudicate contested proceedings affecting intellectual property rights; and
g) 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.
5.2. The Office shall have custody of all records, books, drawings, specifications, documents, and other papers
and things relating to intellectual property rights applications filed with the Office. (n)
Section 6. The Organizational Structure of the IPO. - 6.1. The Office shall be headed by a Director General who
shall be assisted by two (2) Deputies Director General.
6.2. The Office shall be divided into six (6) Bureaus, each of which shall be headed by a Director and assisted
by an Assistant Director. These Bureaus are:
a) The Bureau of Patents;
b) The Bureau of Trademarks;
c) The Bureau of Legal Affairs;
d) The Documentation, Information and Technology Transfer Bureau;
e) The Management Information System and EDP Bureau; and
f) The Administrative, Financial and Personnel Services Bureau.
6.3. The Director General, Deputies Director General, Directors and Assistant Directors shall be appointed by
the President, and the other officers and employees of the Office by the Secretary of Trade and Industry,
conformably with and under the Civil Service Law. (n)

53

Section 7. The Director General and Deputies Director General. - 7.1. Functions. - The Director General shall
exercise the following powers and functions:
a) Manage and direct all functions and activities of the Office, including the promulgation of rules and
regulations to implement the objectives, policies, plans, programs and projects of the Office: Provided,
That in the exercise of the authority to propose policies and standards in relation to the following: (1)
the effective, efficient, and economical operations of the Office requiring statutory enactment; (2)
coordination with other agencies of government in relation to the enforcement of intellectual property
rights; (3) the recognition of attorneys, agents, or other persons representing applicants or other parties
before the Office; and (4) the establishment of fees for the filing and processing of an application for a
patent, utility model or industrial design or mark or a collective mark, geographic indication and other
marks of ownership, and for all other services performed and materials furnished by the Office, the
Director General shall be subject to the supervision of the Secretary of Trade and Industry;
b) Exercise exclusive appellate jurisdiction over all decisions rendered by the Director of Legal Affairs,
the Director of Patents, the Director of Trademarks, and the Director of the Documentation,
Information and Technology Transfer Bureau. The decisions of the Director General in the exercise of
his appellate jurisdiction in respect of the decisions of the Director of Patents, and the Director of
Trademarks shall be appealable to the Court of Appeals in accordance with the Rules of Court; and
those in respect of the decisions of the Director of Documentation, Information and Technology
Transfer Bureau shall be appealable to the Secretary of Trade and Industry; and
c) Exercise original jurisdiction to resolve disputes relating to the terms of a license involving the
author's right to public performance or other communication of his work. The decisions of the Director
General in these cases shall be appealable to the Secretary of Trade and Industry.
7.2. Qualifications. - The Director General and the Deputies Director General must be natural born citizens of
the Philippines, at least thirty-five (35) years of age on the day of their appointment, holders of a college degree,
and of proven competence, integrity, probity and independence: Provided, That the Director General and at least
one (1) Deputy Director General shall be members of the Philippine Bar who have engaged in the practice of
law for at least ten (10) years: Provided further, That in the selection of the Director General and the Deputies
Director General, consideration shall be given to such qualifications as would result, as far as practicable, in the
balanced representation in the Directorate General of the various fields of intellectual property.
7.3. Term of Office. - The Director General and the Deputies Director General shall be appointed by the
President for a term of five (5) years and shall be eligible for reappointment only once: Provided, That the first
Director General shall have a first term of seven (7) years. Appointment to any vacancy shall be only for the
unexpired term of the predecessor.
7.4. The Office of the Director General. - The Office of the Director General shall consist of the Director
General and the Deputies Director General, their immediate staff and such Offices and Services that the Director
General will set up to support directly the Office of the Director General. (n)
Section 8. The Bureau of Patents. - The Bureau of Patents shall have the following functions:
8.1. Search and examination of patent applications and the grant of patents;
8.2. Registration of utility models, industrial designs, and integrated circuits; and
8.3. Conduct studies and researches in the field of patents in order to assist the Director General in formulating
policies on the administration and examination of patents. (n)
Section 9. The Bureau of Trademarks. - The Bureau of Trademarks shall have the following functions:
9.1. Search and examination of the applications for the registration of marks, geographic indications and other
marks of ownership and the issuance of the certificates of registration; and

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9.2. Conduct studies and researches in the field of trademarks in order to assist the Director General in
formulating policies on the administration and examination of trademarks. (n)
Section 10. The Bureau of Legal Affairs. - The Bureau of Legal Affairs shall have the following functions:
10.1. Hear and decide opposition to the application for registration of marks; cancellation of trademarks; subject
to the provisions of Section 64, cancellation of patents, utility models, and industrial designs; and petitions for
compulsory licensing of patents;
10.2. (a) Exercise original jurisdiction in administrative complaints for violations of laws involving intellectual
property rights: Provided, That its jurisdiction is limited to complaints where the total damages claimed are not
less than Two hundred thousand pesos (P200,000): Provided further, That availment of the provisional remedies
may be granted in accordance with the Rules of Court. The Director of Legal Affairs shall have the power to
hold and punish for contempt all those who disregard orders or writs issued in the course of the proceedings. (n)
(b) After formal investigation, the Director for Legal Affairs may impose one (1) or more of the
following administrative penalties:
(i) The issuance of a cease and desist order which shall specify the acts that the respondent
shall cease and desist from and shall require him to submit a compliance report within a
reasonable time which shall be fixed in the order;
(ii) The acceptance of a voluntary assurance of compliance or discontinuance as may be
imposed. Such voluntary assurance may include one or more of the following:
(1) An assurance to comply with the provisions of the intellectual property law
violated;
(2) An assurance to refrain from engaging in unlawful and unfair acts and practices
subject of the formal investigation;
(3) An assurance to recall, replace, repair, or refund the money value of defective
goods distributed in commerce; and
(4) An assurance to reimburse the complainant the expenses and costs incurred in
prosecuting the case in the Bureau of Legal Affairs.
The Director of Legal Affairs may also require the respondent to submit periodic compliance
reports and file a bond to guarantee compliance of his undertaking;
(iii) The condemnation or seizure of products which are subject of the offense. The goods
seized hereunder shall be disposed of in such manner as may be deemed appropriate by the
Director of Legal Affairs, such as by sale, donation to distressed local governments or to
charitable or relief institutions, exportation, recycling into other goods, or any combination
thereof, under such guidelines as he may provide;
(iv) The forfeiture of paraphernalia and all real and personal properties which have been used
in the commission of the offense;
(v) The imposition of administrative fines in such amount as deemed reasonable by the
Director of Legal Affairs, which shall in no case be less than Five thousand pesos (P5,000) nor
more than One hundred fifty thousand pesos (P150,000). In addition, an additional fine of not
more than One thousand pesos (P1,000) shall be imposed for each day of continuing violation;
(vi) The cancellation of any permit, license, authority, or registration which may have been
granted by the Office, or the suspension of the validity thereof for such period of time as the
Director of Legal Affairs may deem reasonable which shall not exceed one (1) year;

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(vii) The withholding of any permit, license, authority, or registration which is being secured
by the respondent from the Office;
(viii) The assessment of damages;
(ix) Censure; and
(x) Other analogous penalties or sanctions. (Secs. 6, 7, 8, and 9, Executive Order No. 913
[1983]a)
10.3. The Director General may by Regulations establish the procedure to govern the implementation of this
Section. (n)
Section 11. The Documentation, Information and Technology Transfer Bureau. - The Documentation,
Information and Technology Transfer Bureau shall have the following functions:
11.1. Support the search and examination activities of the Office through the following activities:
(a) Maintain and upkeep classification systems whether they be national or international such as the
International Patent Classification (IPC) system;
(b) Provide advisory services for the determination of search patterns;
(c) Maintain search files and search rooms and reference libraries; and
(d) Adapt and package industrial property information.
11.2. Establish networks or intermediaries or regional representatives;
11.3. Educate the public and build awareness on intellectual property through the conduct of seminars and
lectures, and other similar activities;
11.4. Establish working relations with research and development institutions as well as with local and
international intellectual property professional groups and the like;
11.5. Perform state-of-the-art searches;
11.6. Promote the use of patent information as an effective tool to facilitate the development of technology in
the country;
11.7. Provide technical, advisory, and other services relating to the licensing and promotion of technology, and
carry out an efficient and effective program for technology transfer; and
11.8. Register technology transfer arrangements, and settle disputes involving technology transfer payments. (n)
Section 12. The Management Information Services and EDP Bureau. - The Management Information Services
and EDP Bureau shall:
12.1. Conduct automation planning, research and development, testing of systems, contracts with firms,
contracting, purchase and maintenance of equipment, design and maintenance of systems, user consultation, and
the like; and
12.2. Provide management information support and service to the Office. (n)
Section 13. The Administrative, Financial and Human Resource Development Service Bureau. - 13.1. The
Administrative Service shall: (a) Provide services relative to procurement and allocation of supplies and

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equipment, transportation, messengerial work, cashiering, payment of salaries and other Office's obligations,
office maintenance, proper safety and security, and other utility services; and comply with government
regulatory requirements in the areas of performance appraisal, compensation and benefits, employment records
and reports;
(b) Receive all applications filed with the Office and collect fees therefor, and
(c) Publish patent applications and grants, trademark applications, and registration of marks, industrial
designs, utility models, geographic indication, and lay-out-designs of integrated circuits registrations.
13.2. The Patent and Trademark Administration Services shall perform the following functions among others:
(a) Maintain registers of assignments, mergings, licenses, and bibliographic on patents and trademarks;
(b) Collect maintenance fees, issue certified copies of documents in its custody and perform similar
other activities; and
(c) Hold in custody all the applications filed with the office, and all patent grants, certificate of
registrations issued by the office, and the like.
13.3. The Financial Service shall formulate and manage a financial program to ensure availability and proper
utilization of funds; provide for an effective monitoring system of the financial operations of the Office; and
13.4. The Human Resource Development Service shall design and implement human resource development
plans and programs for the personnel of the Office; provide for present and future manpower needs of the
organization; maintain high morale and favorable employee attitudes towards the organization through the
continuing design and implementation of employee development programs. (n)
Section 14. Use of Intellectual Property Rights Fees by the IPO. - 14.1. For a more effective and expeditious
implementation of this Act, the Director General shall be authorized to retain, without need of a separate
approval from any government agency, and subject only to the existing accounting and auditing rules and
regulations, all the fees, fines, royalties and other charges, collected by the Office under this Act and the other
laws that the Office will be mandated to administer, for use in its operations, like upgrading of its facilities,
equipment outlay, human resource development, and the acquisition of the appropriate office space, among
others, to improve the delivery of its services to the public. This amount, which shall be in addition to the
Office's annual budget, shall be deposited and maintained in a separate account or fund, which may be used or
disbursed directly by the Director General.
14.2. After five (5) years from the coming into force of this Act, the Director General shall, subject to the
approval of the Secretary of Trade and Industry, determine if the fees and charges mentioned in Subsection 14.1
hereof that the Office shall collect are sufficient to meet its budgetary requirements. If so, it shall retain all the
fees and charges it shall collect under the same conditions indicated in said Subsection 14.1 but shall forthwith,
cease to receive any funds from the annual budget of the National Government; if not, the provisions of said
Subsection 14.1 shall continue to apply until such time when the Director General, subject to the approval of the
Secretary of Trade and Industry, certifies that the above-stated fees and charges the Office shall collect are
enough to fund its operations. (n)
Section 15. Special Technical and Scientific Assistance. - The Director General is empowered to obtain the
assistance of technical, scientific or other qualified officers and employees of other departments, bureaus,
offices, agencies and instrumentalities of the Government, including corporations owned, controlled or operated
by the Government, when deemed necessary in the consideration of any matter submitted to the Office relative
to the enforcement of the provisions of this Act. (Sec. 3, R.A. No. 165a)
Section 16. Seal of Office. - The Office shall have a seal, the form and design of which shall be approved by the
Director General. (Sec. 4, R.A. No. 165a)

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Section 17. Publication of Laws and Regulations. - The Director General shall cause to be printed and make
available for distribution, pamphlet copies of this Act, other pertinent laws, executive orders and information
circulars relating to matters within the jurisdiction of the Office. (Sec. 5, R.A. No. 165a)
Section 18. The IPO Gazette. - All matters required to be published under this Act shall be published in the
Office's own publication to be known as the IPO Gazette. (n)
Section 19. Disqualification of Officers and Employees of the Office. - All officers and employees of the Office
shall not apply or act as an attorney or patent agent of an application for a grant of patent, for the registration of
a utility model, industrial design or mark nor acquire, except by hereditary succession, any patent or utility
model, design registration, or mark or any right, title or interest therein during their employment and for one (1)
year thereafter. (Sec. 77, R.A. No. 165a)
PART II
THE LAW ON PATENTS
CHAPTER I
GENERAL PROVISIONS
Section 20. Definition of Terms Used in Part II, The Law on Patents. - As used in Part II, the following terms
shall have the following meanings:
20.1. "Bureau" means the Bureau of Patents,
20.2. "Director" means the Director of Patents;
20.3. "Regulations" means the Rules of Practice in Patent Cases formulated by the Director of Patents
and promulgated by the Director General;
20.4. "Examiner" means the patent examiner;
20.5. "Patent application" or "application" means an application for a patent for an invention except in
Chapters XII and XIII, where "application" means an application for a utility model and an industrial
design, respectively; and
20.6. "Priority date" means the date of filing of the foreign application for the same invention referred
to in Section 31 of this Act. (n)
CHAPTER II
PATENTABILITY
Section 21. Patentable Inventions. - Any technical solution of a problem in any field of human activity which is
new, involves an inventive step and is industrially applicable shall be Patentable. It may be, or may relate to, a
product, or process, or an improvement of any of the foregoing. (Sec. 7, R.A. No. 165a)
Section 22. Non-Patentable Inventions. - The following shall be excluded from patent protection:
22.1. Discoveries, scientific theories and mathematical methods;
22.2. Schemes, rules and methods of performing mental acts, playing games or doing business, and programs
for computers;
22.3. Methods for treatment of the human or animal body by surgery or therapy and diagnostic methods
practiced on the human or animal body. This provision shall not apply to products and composition for use in
any of these methods;

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22.4. Plant varieties or animal breeds or essentially biological process for the production of plants or animals.
This provision shall not apply to micro-organisms and non-biological and microbiological processes.
Provisions under this subsection shall not preclude Congress to consider the enactment of a law providing sui
generis protection of plant varieties and animal breeds and a system of community intellectual rights protection:
22.5. Aesthetic creations; and
22.6. Anything which is contrary to public order or morality. (Sec. 8, R.A. No. 165a)
Section 23. Novelty. . - An invention shall not be considered new if it forms part of a prior art. (Sec. 9, R.A. No.
165a)
Section 24. Prior Art. - Prior art shall consist of:
24.1. Everything which has been made available to the public anywhere in the world, before the filing date or
the priority date of the application claiming the invention; and
24.2. The whole contents of an application for a patent, utility model, or industrial design registration, published
in accordance with this Act, filed or effective in the Philippines, with a filing or priority date that is earlier than
the filing or priority date of the application: Provided, That the application which has validly claimed the filing
date of an earlier application under Section 31 of this Act, shall be prior art with effect as of the filing date of
such earlier application: Provided further, That the applicant or the inventor identified in both applications are
not one and the same. (Sec. 9, R.A. No. 165a)
Section 25. Non-Prejudicial Disclosure. . - 25.1. The disclosure of information contained in the application
during the twelve (12) months preceding the filing date or the priority date of the application shall not prejudice
the applicant on the ground of lack of novelty if such disclosure was made by:
(a) The inventor;
(b) A patent office and the information was contained (a) in another application filed by the inventor
and should not have been disclosed by the office, or (b) in an application filed without the knowledge
or consent of the inventor by a third party which obtained the information directly or indirectly from
the inventor; or
(c) A third party which obtained the information directly or indirectly from the inventor.
25.2. For the purposes of Subsection 25.1, "inventor" also means any person who, at the filing date of
application, had the right to the patent. (n)
Section 26. Inventive Step. - An invention involves an inventive step if, having regard to prior art, it is not
obvious to a person skilled in the art at the time of the filing date or priority date of the application claiming the
invention. (n)
Section 27. Industrial Applicability. - An invention that can be produced and used in any industry shall be
industrially applicable. (n)
CHAPTER III
RIGHT TO A PATENT
Section 28. Right to a Patent. - The right to a patent belongs to the inventor, his heirs, or assigns. When two (2)
or more persons have jointly made an invention, the right to a patent shall belong to them jointly. (Sec. 10, R.A.
No. 165a)

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Section 29. First to File Rule. - If two (2) or more persons have made the invention separately and
independently of each other, the right to the patent shall belong to the person who filed an application for such
invention, or where two or more applications are filed for the same invention, to the applicant who has the
earliest filing date or, the earliest priority date. (3rd sentence, Sec. 10, R.A. No. 165a.)
Section 30. Inventions Created Pursuant to a Commission. - 30.1. The person who commissions the work shall
own the patent, unless otherwise provided in the contract.
30.2. In case the employee made the invention in the course of his employment contract, the patent shall belong
to:
(a) The employee, if the inventive activity is not a part of his regular duties even if the employee uses
the time, facilities and materials of the employer.
(b) The employer, if the invention is the result of the performance of his regularly-assigned duties,
unless there is an agreement, express or implied, to the contrary. (n)
Section 31. Right of Priority. . - An application for patent filed by any person who has previously applied for the
same invention in another country which by treaty, convention, or law affords similar privileges to Filipino
citizens, shall be considered as filed as of the date of filing the foreign application: Provided, That: (a) the local
application expressly claims priority; (b) it is filed within twelve (12) months from the date the earliest foreign
application was filed; and (c) a certified copy of the foreign application together with an English translation is
filed within six (6) months from the date of filing in the Philippines. (Sec. 15, R.A. No. 165a)
CHAPTER IV
PATENT APPLICATION
Section 32. The Application. - 32.1. The patent application shall be in Filipino or English and shall contain the
following:
(a) A request for the grant of a patent;
(b) A description of the invention;
(c) Drawings necessary for the understanding of the invention;
(d) One or more claims; and
(e) An abstract.
32.2. No patent may be granted unless the application identifies the inventor. If the applicant is not the inventor,
the Office may require him to submit said authority. (Sec. 13, R.A. No. 165a)
Section 33. Appointment of Agent or Representative. - An applicant who is not a resident of the Philippines must
appoint and maintain a resident agent or representative in the Philippines upon whom notice or process for
judicial or administrative procedure relating to the application for patent or the patent may be served. (Sec. 11,
R.A. No. 165a)
Section 34. The Request. - The request shall contain a petition for the grant of the patent, the name and other
data of the applicant, the inventor and the agent and the title of the invention. (n)
Section 35. Disclosure and Description of the Invention. - 35.1. Disclosure. - The application shall disclose the
invention in a manner sufficiently clear and complete for it to be carried out by a person skilled in the art. Where
the application concerns a microbiological process or the product thereof and involves the use of a microorganism which cannot be sufficiently disclosed in the application in such a way as to enable the invention to be
carried out by a person skilled in the art, and such material is not available to the public, the application shall be
supplemented by a deposit of such material with an international depository institution.

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35.2. Description. - The Regulations shall prescribe the contents of the description and the order of presentation.
(Sec. 14, R.A. No. 165a)
Section 36. The Claims. - 36.1. The application shall contain one (1) or more claims which shall define the
matter for which protection is sought. Each claim shall be clear and concise, and shall be supported by the
description.
36.2. The Regulations shall prescribe the manner of the presentation of claims. (n)
Section 37. The Abstract. - The abstract shall consist of a concise summary of the disclosure of the invention as
contained in the description, claims and drawings in preferably not more than one hundred fifty (150) words. It
must be drafted in a way which allows the clear understanding of the technical problem, the gist of the solution
of that problem through the invention, and the principal use or uses of the invention. The abstract shall merely
serve for technical information. (n)
Section 38. Unity of Invention. - 38.1. The application shall relate to one invention only or to a group of
inventions forming a single general inventive concept.
38.2. If several independent inventions which do not form a single general inventive concept are claimed in one
application, the Director may require that the application be restricted to a single invention. A later application
filed for an invention divided out shall be considered as having been filed on the same day as the first
application: Provided, That the later application is filed within four (4) months after the requirement to divide
becomes final or within such additional time, not exceeding four (4) months, as may be granted: Provided
further, That each divisional application shall not go beyond the disclosure in the initial application.
38.3. The fact that a patent has been granted on an application that did not comply with the requirement of unity
of invention shall not be a ground to cancel the patent. (Sec. 17, R.A. No. 165a)
Section 39. Information Concerning Corresponding Foreign Application for Patents. - The applicant shall, at
the request of the Director, furnish him with the date and number of any application for a patent filed by him
abroad, hereafter referred to as the "foreign application," relating to the same or essentially the same invention
as that claimed in the application filed with the Office and other documents relating to the foreign application.
(n)
CHAPTER V
PROCEDURE FOR GRANT OF PATENT
Section 40. Filing Date Requirements. - 40.1. The filing date of a patent application shall be the date of receipt
by the Office of at least the following elements:
(a) An express or implicit indication that a Philippine patent is sought;
(b) Information identifying the applicant; and
(c) Description of the invention and one (1) or more claims in Filipino or English.
40.2. If any of these elements is not submitted within the period set by the Regulations, the application shall be
considered withdrawn. (n)
Section 41. According a Filing Date. - The Office shall examine whether the patent application satisfies the
requirements for the grant of date of filing as provided in Section 40 hereof. If the date of filing cannot be
accorded, the applicant shall be given an opportunity to correct the deficiencies in accordance with the
implementing Regulations. If the application does not contain all the elements indicated in Section 40, the filing
date should be that date when all the elements are received. If the deficiencies are not remedied within the
prescribed time limit, the application shall be considered withdrawn. (n)

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Section 42. Formality Examination. - 42.1. After the patent application has been accorded a filing date and the
required fees have been paid on time in accordance with the Regulations, the applicant shall comply with the
formal requirements specified by Section 32 and the Regulations within the prescribed period, otherwise the
application shall be considered withdrawn.
42.2. The Regulations shall determine the procedure for the re-examination and revival of an application as well
as the appeal to the Director of Patents from any final action by the examiner. (Sec. 16, R.A. No. 165a)
Section 43. Classification and Search. - An application that has complied with the formal requirements shall be
classified and a search conducted to determine the prior art. (n)
Section 44. Publication of Patent Application. - 44.1. The patent application shall be published in the IPO
Gazette together with a search document established by or on behalf of the Office citing any documents that
reflect prior art, after the expiration of eighteen ( 18) months from the filing date or priority date.
44.2. After publication of a patent application, any interested party may inspect the application documents filed
with the Office.
44.3. The Director General subject to the approval of the Secretary of Trade and Industry, may prohibit or
restrict the publication of an application, if in his opinion, to do so would be prejudicial to the national security
and interests of the Republic of the Philippines. (n)
Section 45. Confidentiality Before Publication. - A patent application, which has not yet been published, and all
related documents, shall not be made available for inspection without the consent of the applicant. (n)
Section 46. Rights Conferred by a Patent Application After Publication. - The applicant shall have all the rights
of a patentee under Section 76 against any person who, without his authorization, exercised any of the rights
conferred under Section 71 of this Act in relation to the invention claimed in the published patent application, as
if a patent had been granted for that invention: Provided, That the said person had:
46.1. Actual knowledge that the invention that he was using was the subject matter of a published application; or
46.2. Received written notice that the invention that he was using was the subject matter of a published
application being identified in the said notice by its serial number: Provided, That the action may not be filed
until after the grant of a patent on the published application and within four (4) years from the commission of
the acts complained of. (n)
Section 47. Observation by Third Parties. - Following the publication of the patent application, any person may
present observations in writing concerning the patentability of the invention. Such observations shall be
communicated to the applicant who may comment on them. The Office shall acknowledge and put such
observations and comment in the file of the application to which it relates. (n)
Section 48. Request for Substantive Examination. - 48.1. The application shall be deemed withdrawn unless
within six (6) months from the date of publication under Section 41, a written request to determine whether a
patent application meets the requirements of Sections 21 to 27 and Sections 32 to 39 and the fees have been paid
on time.
48.2. Withdrawal of the request for examination shall be irrevocable and shall not authorize the refund of any
fee. (n)
Section 49. Amendment of Application. - An applicant may amend the patent application during examination:
Provided, That such amendment shall not include new matter outside the scope of the disclosure contained in
the application as filed. (n)
Section 50. Grant of Patent. - 50.1. If the application meets the requirements of this Act, the Office shall grant
the patent: Provided, That all the fees are paid on time.

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50.2. If the required fees for grant and printing are not paid in due time, the application shall be deemed to be
withdrawn.
50.3. A patent shall take effect on the date of the publication of the grant of the patent in the IPO Gazette. (Sec.
18, R.A. No. 165a)
Section 51. Refusal of the Application. - 51.1. The final order of refusal of the examiner to grant the patent shall
be appealable to the Director in accordance with this Act.
51.2. The Regulations shall provide for the procedure by which an appeal from the order of refusal from the
Director shall be undertaken. (n)
Section 52. Publication Upon Grant of Patent. - 52.1. The grant of the patent together with other related
information shall be published in the IPO Gazette within the time prescribed by the Regulations.
52.2. Any interested party may inspect the complete description, claims, and drawings of the patent on file with
the Office. (Sec. 18, R.A. No. 165a)
Section 53. Contents of Patent. - The patent shall be issued in the name of the Republic of the Philippines under
the seal of the Office and shall be signed by the Director, and registered together with the description, claims,
and drawings, if any, in books and records of the Office. (Secs. 19 and 20, R.A. No. 165a)
Section 54. Term of Patent. - The term of a patent shall be twenty (20) years from the filing date of the
application. (Sec. 21, R.A. No. 165a)
Section 55. Annual Fees. - 55.1. To maintain the patent application or patent, an annual fee shall be paid upon
the expiration of four (4) years from the date the application was published pursuant to Section 44 hereof, and
on each subsequent anniversary of such date. Payment may be made within three (3) months before the due
date. The obligation to pay the annual fees shall terminate should the application be withdrawn, refused, or
cancelled.
55.2. If the annual fee is not paid, the patent application shall be deemed withdrawn or the patent considered as
lapsed from the day following the expiration of the period within which the annual fees were due. A notice that
the application is deemed withdrawn or the lapse of a patent for non-payment of any annual fee shall be
published in the IPO Gazette and the lapse shall be recorded in the Register of the Office.
55.3. A grace period of six (6) months shall be granted for the payment of the annual fee, upon payment of the
prescribed surcharge for delayed payment. (Sec. 22, R.A. No. 165a)
Section 56. Surrender of Patent. - 56.1. The owner of the patent, with the consent of all persons having grants or
licenses or other right, title or interest in and to the patent and the invention covered thereby, which have been
recorded in the Office, may surrender his patent or any claim or claims forming part thereof to the Office for
cancellation.
56.2. A person may give notice to the Office of his opposition to the surrender of a patent under this section, and
if he does so, the Bureau shall notify the proprietor of the patent and determine the question.
56.3. If the Office is satisfied that the patent may properly be surrendered, he may accept the offer and, as from
the day when notice of his acceptance is published in the IPO Gazette, the patent shall cease to have effect, but
no action for infringement shall lie and no right compensation shall accrue for any use of the patented invention
before that day for the services of the government. (Sec. 24, R.A. No. 165a)
Section 57. Correction of Mistakes of the Office. - The Director shall have the power to correct, without fee, any
mistake in a patent incurred through the fault of the Office when clearly disclosed in the records thereof, to
make the patent conform to the records. (Sec. 25, R.A. No. 165)

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Section 58. Correction of Mistake in the Application. - On request of any interested person and payment of the
prescribed fee, the Director is authorized to correct any mistake in a patent of a formal and clerical nature, not
incurred through the fault of the Office. (Sec. 26, R.A. No. 165a)
Section 59. Changes in Patents. - 59.1. The owner of a patent shall have the right to request the Bureau to make
the changes in the patent in order to:
(a) Limit the extent of the protection conferred by it;
(b) Correct obvious mistakes or to correct clerical errors; and
(c) Correct mistakes or errors, other than those referred to in letter (b), made in good faith: Provided,
That where the change would result in a broadening of the extent of protection conferred by the patent,
no request may be made after the expiration of two (2) years from the grant of a patent and the change
shall not affect the rights of any third party which has relied on the patent, as published.
59.2. No change in the patent shall be permitted under this section, where the change would result in the
disclosure contained in the patent going beyond the disclosure contained in the application filed.
59.3. If, and to the extent to which the Office changes the patent according to this section, it shall publish the
same. (n)
Section 60. Form and Publication of Amendment. - An amendment or correction of a patent shall be
accomplished by a certificate of such amendment or correction, authenticated by the seal of the Office and
signed by the Director, which certificate shall be attached to the patent. Notice of such amendment or correction
shall be published in the IPO Gazette and copies of the patent kept or furnished by the Office shall include a
copy of the certificate of amendment or correction. (Sec. 27, R.A. No. 165)
CHAPTER VI
CANCELLATION OF PATENTS AND SUBSTITUTION OF PATENTEE
Section 61. Cancellation of Patents. - 61.1. Any interested person may, upon payment of the required fee,
petition to cancel the patent or any claim thereof, or parts of the claim, on any of the following grounds:
(a) That what is claimed as the invention is not new or Patentable;
(b) That the patent does not disclose the invention in a manner sufficiently clear and complete for it to
be carried out by any person skilled in the art; or
(c) That the patent is contrary to public order or morality.
61.2. Where the grounds for cancellation relate to some of the claims or parts of the claim, cancellation may be
effected to such extent only. (Secs. 28 and 29, R.A. No. 165a)
Section 62. Requirement of the Petition. - The petition for cancellation shall be in writing, verified by the
petitioner or by any person in his behalf who knows the facts, specify the grounds upon which it is based,
include a statement of the facts to be relied upon, and filed with the Office. Copies of printed publications or of
patents of other countries, and other supporting documents mentioned in the petition shall be attached thereto,
together with the translation thereof in English, if not in the English language. (Sec. 30, R.A. No. 165)
Section 63. Notice of Hearing. - Upon filing of a petition for cancellation, the Director of Legal Affairs shall
forthwith serve notice of the filing thereof upon the patentee and all persons having grants or licenses, or any
other right, title or interest in and to the patent and the invention covered thereby, as appears of record in the
Office, and of notice of the date of hearing thereon on such persons and the petitioner. Notice of the filing of the
petition shall be published in the IPO Gazette. (Sec. 31, R.A. No. 165a)

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Section 64. Committee of Three. - In cases involving highly technical issues, on motion of any party, the
Director of Legal Affairs may order that the petition be heard and decided by a committee composed of the
Director of Legal Affairs as chairman and two (2) members who have the experience or expertise in the field of
technology to which the patent sought to be cancelled relates. The decision of the committee shall be appealable
to the Director General. (n)
Section 65. Cancellation of the Patent. - 65.1. If the Committee finds that a case for cancellation has been
proved, it shall order the patent or any specified claim or claims thereof cancelled.
65.2. If the Committee finds that, taking into consideration the amendment made by the patentee during the
cancellation proceedings, the patent and the invention to which it relates meet the requirement of this Act, it may
decide to maintain the patent as amended: Provided, That the fee for printing of a new patent is paid within the
time limit prescribed in the Regulations.
65.3. If the fee for the printing of a new patent is not paid in due time, the patent should be revoked.
65.4. If the patent is amended under Subsection 65.2 hereof, the Bureau shall, at the same time as it publishes
the mention of the cancellation decision, publish the abstract, representative claims and drawings indicating
clearly what the amendments consist of. (n)
Section 66. Effect of Cancellation of Patent or Claim. - The rights conferred by the patent or any specified claim
or claims cancelled shall terminate. Notice of the cancellation shall be published in the IPO Gazette. Unless
restrained by the Director General, the decision or order to cancel by Director of Legal Affairs shall be
immediately executory even pending appeal. (Sec. 32, R.A. No. 165a)
CHAPTER VII
REMEDIES OF A PERSON WITH A RIGHT TO A PATENT
Section 67. Patent Application by Persons Not Having the Right to a Patent. . - 67.1. If a person referred to in
Section 29 other than the applicant, is declared by final court order or decision as having the right to the patent,
such person may, within three (3) months after the decision has become final:
(a) Prosecute the application as his own application in place of the applicant;
(b) File a new patent application in respect of the same invention;
(c) Request that the application be refused; or
(d) Seek cancellation of the patent, if one has already been issued.
67.2. The provisions of Subsection 38.2 shall apply mutatis mutandis to a new application filed under
Subsection 67. 1(b). (n)
Section 68. Remedies of the True and Actual Inventor. - If a person, who was deprived of the patent without his
consent or through fraud is declared by final court order or decision to be the true and actual inventor, the court
shall order for his substitution as patentee, or at the option of the true inventor, cancel the patent, and award
actual and other damages in his favor if warranted by the circumstances. (Sec. 33, R.A. No. 165a)
Section 69. Publication of the Court Order. - The court shall furnish the Office a copy of the order or decision
referred to in Sections 67 and 68, which shall be published in the IPO Gazette within three (3) months from the
date such order or decision became final and executory, and shall be recorded in the register of the Office. (n)
Section 70. Time to File Action in Court. - The actions indicated in Sections 67 and 68 shall be filed within one
(1) year from the date of publication made in accordance with Sections 44 and 51, respectively. (n)
CHAPTER VIII
RIGHTS OF PATENTEES AND INFRINGEMENT OF PATENTS

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Section 71. Rights Conferred by Patent. - 71.1. A patent shall confer on its owner the following exclusive rights:
(a) Where the subject matter of a patent is a product, to restrain, prohibit and prevent any unauthorized
person or entity from making, using, offering for sale, selling or importing that product;
(b) Where the subject matter of a patent is a process, to restrain, prevent or prohibit any unauthorized
person or entity from using the process, and from manufacturing, dealing in, using, selling or offering
for sale, or importing any product obtained directly or indirectly from such process.
71.2. Patent owners shall also have the right to assign, or transfer by succession the patent, and to conclude
licensing contracts for the same. (Sec. 37, R.A. No. 165a)
Section 72. Limitations of Patent Rights. - The owner of a patent has no right to prevent third parties from
performing, without his authorization, the acts referred to in Section 71 hereof in the following circumstances:
72.1. Using a patented product which has been put on the market in the Philippines by the owner of the product,
or with his express consent, insofar as such use is performed after that product has been so put on the said
market;
72.2. Where the act is done privately and on a non-commercial scale or for a non-commercial purpose:
Provided, That it does not significantly prejudice the economic interests of the owner of the patent;
72.3. Where the act consists of making or using exclusively for the purpose of experiments that relate to the
subject matter of the patented invention;
72.4. Where the act consists of the preparation for individual cases, in a pharmacy or by a medical professional,
of a medicine in accordance with a medical prescription or acts concerning the medicine so prepared;
72.5. Where the invention is used in any ship, vessel, aircraft, or land vehicle of any other country entering the
territory of the Philippines temporarily or accidentally: Provided, That such invention is used exclusively for the
needs of the ship, vessel, aircraft, or land vehicle and not used for the manufacturing of anything to be sold
within the Philippines. (Secs. 38 and 39, R.A. No. 165a)
Section 73. Prior User. - 73.1. Notwithstanding Section 72 hereof, any prior user, who, in good faith was using
the invention or has undertaken serious preparations to use the invention in his enterprise or business, before the
filing date or priority date of the application on which a patent is granted, shall have the right to continue the use
thereof as envisaged in such preparations within the territory where the patent produces its effect.
73.2. The right of the prior user may only be transferred or assigned together with his enterprise or business, or
with that part of his enterprise or business in which the use or preparations for use have been made. (Sec. 40,
R.A. No. 165a)
Section 74. Use of Invention by Government. - 74.1. A Government agency or third person authorized by the
Government may exploit the invention even without agreement of the patent owner where:
(a) The public interest, in particular, national security, nutrition, health or the development of other
sectors, as determined by the appropriate agency of the government, so requires; or
(b) A judicial or administrative body has determined that the manner of exploitation, by the owner of
the patent or his licensee is anti-competitive.
74.2. The use by the Government, or third person authorized by the Government shall be subject, mutatis
mutandis, to the conditions set forth in Sections 95 to 97 and 100 to 102. (Sec. 41, R.A. No. 165a)
Section 75. Extent of Protection and Interpretation of Claims. - 75.1. The extent of protection conferred by the
patent shall be determined by the claims, which are to be interpreted in the light of the description and drawings.

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75.2. For the purpose of determining the extent of protection conferred by the patent, due account shall be taken
of elements which are equivalent to the elements expressed in the claims, so that a claim shall be considered to
cover not only all the elements as expressed therein, but also equivalents. (n)
Section 76. Civil Action for Infringement. - 76.1. The making, using, offering for sale, selling, or importing a
patented product or a product obtained directly or indirectly from a patented process, or the use of a patented
process without the authorization of the patentee constitutes patent infringement.
76.2. Any patentee, or anyone possessing any right, title or interest in and to the patented invention, whose
rights have been infringed, may bring a civil action before a court of competent jurisdiction, to recover from the
infringer such damages sustained thereby, plus attorney's fees and other expenses of litigation, and to secure an
injunction for the protection of his rights.
76.3. If the damages are inadequate or cannot be readily ascertained with reasonable certainty, the court may
award by way of damages a sum equivalent to reasonable royalty.
76.4. The court may, according to the circumstances of the case, award damages in a sum above the amount
found as actual damages sustained: Provided, That the award does not exceed three (3) times the amount of such
actual damages.
76.5. The court may, in its discretion, order that the infringing goods, materials and implements predominantly
used in the infringement be disposed of outside the channels of commerce or destroyed, without compensation.
76.6. Anyone who actively induces the infringement of a patent or provides the infringer with a component of a
patented product or of a product produced because of a patented process knowing it to be especially adopted for
infringing the patented invention and not suitable for substantial non-infringing use shall be liable as a
contributory infringer and shall be jointly and severally liable with the infringer. (Sec. 42, R.A. No. 165a)
Section 77. Infringement Action by a Foreign National. - Any foreign national or juridical entity who meets the
requirements of Section 3 and not engaged in business in the Philippines, to which a patent has been granted or
assigned under this Act, may bring an action for infringement of patent, whether or not it is licensed to do
business in the Philippines under existing law. (Sec. 41-A, R.A. No. 165a)
Section 78. Process Patents; Burden of Proof . - If the subject matter of a patent is a process for obtaining a
product, any identical product shall be presumed to have been obtained through the use of the patented process
if the product is new or there is substantial likelihood that the identical product was made by the process and the
owner of the patent has been unable despite reasonable efforts, to determine the process actually used. In
ordering the defendant to prove that the process to obtain the identical product is different from the patented
process, the court shall adopt measures to protect, as far as practicable, his manufacturing and business secrets.
(n)
Section 79. Limitation of Action for Damages. - No damages can be recovered for acts of infringement
committed more than four (4) years before the institution of the action for infringement. (Sec. 43, R.A. No. 165)
Section 80. Damages, Requirement of Notice. - Damages cannot be recovered for acts of infringement
committed before the infringer had known, or had reasonable grounds to know of the patent. It is presumed that
the infringer had known of the patent if on the patented product, or on the container or package in which the
article is supplied to the public, or on the advertising material relating to the patented product or process, are
placed the words "Philippine Patent" with the number of the patent. (Sec. 44, R.A. No. 165a)
Section 81. Defenses in Action for Infringement. - In an action for infringement, the defendant, in addition to
other defenses available to him, may show the invalidity of the patent, or any claim thereof, on any of the
grounds on which a petition of cancellation can be brought under Section 61 hereof. (Sec. 45, R.A. No. 165)
Section 82. Patent Found Invalid May be Cancelled. - In an action for infringement, if the court shall find the
patent or any claim to be invalid, it shall cancel the same, and the Director of Legal Affairs upon receipt of the
final judgment of cancellation by the court, shall record that fact in the register of the Office and shall publish a
notice to that effect in the IPO Gazette. (Sec. 46, R.A. No. 165a)

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Section 83. Assessor in Infringement Action. - 83.1. Two (2) or more assessors may be appointed by the court.
The assessors shall be possessed of the necessary scientific and technical knowledge required by the subject
matter in litigation. Either party may challenge the fitness of any assessor proposed for appointment.
83.2. Each assessor shall receive a compensation in an amount to be fixed by the court and advanced by the
complaining party, which shall be awarded as part of his costs should he prevail in the action. (Sec. 47, R.A. No.
165a)
Section 84. Criminal Action for Repetition of Infringement. - If infringement is repeated by the infringer or by
anyone in connivance with him after finality of the judgment of the court against the infringer, the offenders
shall, without prejudice to the institution of a civil action for damages, be criminally liable therefor and, upon
conviction, shall suffer imprisonment for the period of not less than six (6) months but not more than three (3)
years and/or a fine of not less than One hundred thousand pesos (P100,000) but not more than Three hundred
thousand pesos (P300,000), at the discretion of the court. The criminal action herein provided shall prescribe in
three (3) years from date of the commission of the crime. (Sec. 48, R.A. No. 165a)
CHAPTER IX
VOLUNTARY LICENSING
Section 85. Voluntary License Contract. - To encourage the transfer and dissemination of technology, prevent or
control practices and conditions that may in particular cases constitute an abuse of intellectual property rights
having an adverse effect on competition and trade, all technology transfer arrangements shall comply with the
provisions of this Chapter. (n)
Section 86. Jurisdiction to Settle Disputes on Royalties. - The Director of the Documentation, Information and
Technology Transfer Bureau shall exercise quasi-judicial jurisdiction in the settlement of disputes between
parties to a technology transfer arrangement arising from technology transfer payments, including the fixing of
appropriate amount or rate of royalty. (n)
Section 87. Prohibited Clauses. - Except in cases under Section 91, the following provisions shall be deemed
prima facie to have an adverse effect on competition and trade:
87.1. Those which impose upon the licensee the obligation to acquire from a specific source capital goods,
intermediate products, raw materials, and other technologies, or of permanently employing personnel indicated
by the licensor;
87.2. Those pursuant to which the licensor reserves the right to fix the sale or resale prices of the products
manufactured on the basis of the license;
87.3. Those that contain restrictions regarding the volume and structure of production;
87.4. Those that prohibit the use of competitive technologies in a non-exclusive technology transfer agreement;
87.5. Those that establish a full or partial purchase option in favor of the licensor;
87.6. Those that obligate the licensee to transfer for free to the licensor the inventions or improvements that may
be obtained through the use of the licensed technology;
87.7. Those that require payment of royalties to the owners of patents for patents which are not used;
87.8. Those that prohibit the licensee to export the licensed product unless justified for the protection of the
legitimate interest of the licensor such as exports to countries where exclusive licenses to manufacture and/or
distribute the licensed product(s) have already been granted;
87.9. Those which restrict the use of the technology supplied after the expiration of the technology transfer
arrangement, except in cases of early termination of the technology transfer arrangement due to reason(s)
attributable to the licensee;

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87.10. Those which require payments for patents and other industrial property rights after their expiration,
termination arrangement;
87.11. Those which require that the technology recipient shall not contest the validity of any of the patents of the
technology supplier;
87.12. Those which restrict the research and development activities of the licensee designed to absorb and adapt
the transferred technology to local conditions or to initiate research and development programs in connection
with new products, processes or equipment;
87.13. Those which prevent the licensee from adapting the imported technology to local conditions, or
introducing innovation to it, as long as it does not impair the quality standards prescribed by the licensor;
87.14. Those which exempt the licensor for liability for non-fulfilment of his responsibilities under the
technology transfer arrangement and/or liability arising from third party suits brought about by the use of the
licensed product or the licensed technology; and
87.15. Other clauses with equivalent effects. (Sec. 33-C (2), R.A 165a)
Section 88. Mandatory Provisions. - The following provisions shall be included in voluntary license contracts:
88.1. That the laws of the Philippines shall govern the interpretation of the same and in the event of litigation,
the venue shall be the proper court in the place where the licensee has its principal office;
88.2. Continued access to improvements in techniques and processes related to the technology shall be made
available during the period of the technology transfer arrangement;
88.3. In the event the technology transfer arrangement shall provide for arbitration, the Procedure of Arbitration
of the Arbitration Law of the Philippines or the Arbitration Rules of the United Nations Commission on
International Trade Law (UNCITRAL) or the Rules of Conciliation and Arbitration of the International
Chamber of Commerce (ICC) shall apply and the venue of arbitration shall be the Philippines or any neutral
country; and
88.4. The Philippine taxes on all payments relating to the technology transfer arrangement shall be borne by the
licensor. (n)
Section 89. Rights of Licensor. - In the absence of any provision to the contrary in the technology transfer
arrangement, the grant of a license shall not prevent the licensor from granting further licenses to third person
nor from exploiting the subject matter of the technology transfer arrangement himself. (Sec. 33-B, R.A. 165a)
Section 90. Rights of Licensee. - The licensee shall be entitled to exploit the subject matter of the technology
transfer arrangement during the whole term of the technology transfer arrangement. (Sec. 33-C (1), R.A. 165a)
Section 91. Exceptional Cases. - In exceptional or meritorious cases where substantial benefits will accrue to
the economy, such as high technology content, increase in foreign exchange earnings, employment generation,
regional dispersal of industries and/or substitution with or use of local raw materials, or in the case of Board of
Investments, registered companies with pioneer status, exemption from any of the above requirements may be
allowed by the Documentation, Information and Technology Transfer Bureau after evaluation thereof on a case
by case basis. (n)
Section 92. Non-Registration with the Documentation, Information and Technology Transfer Bureau. Technology transfer arrangements that conform with the provisions of Sections 86 and 87 need not be registered
with the Documentation, Information and Technology Transfer Bureau. Non-conformance with any of the
provisions of Sections 87 and 88, however, shall automatically render the technology transfer arrangement
unenforceable, unless said technology transfer arrangement is approved and registered with the Documentation,
Information and Technology Transfer Bureau under the provisions of Section 91 on exceptional cases. (n)

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CHAPTER X
COMPULSORY LICENSING
Section 93. Grounds for Compulsory Licensing. - The Director of Legal Affairs may grant a license to exploit a
patented invention, even without the agreement of the patent owner, in favor of any person who has shown his
capability to exploit the invention, under any of the following circumstances:
93.1. National emergency or other circumstances of extreme urgency;
93.2. Where the public interest, in particular, national security, nutrition, health or the development of other vital
sectors of the national economy as determined by the appropriate agency of the Government, so requires; or
93.3. Where a judicial or administrative body has determined that the manner of exploitation by the owner of the
patent or his licensee is anti-competitive; or
93.4. In case of public non-commercial use of the patent by the patentee, without satisfactory reason;
93.5. If the patented invention is not being worked in the Philippines on a commercial scale, although capable of
being worked, without satisfactory reason: Provided, That the importation of the patented article shall constitute
working or using the patent. (Secs. 34, 34-A, 34-B, R.A. No. 165a)
Section 94. Period for Filing a Petition for a Compulsory License. - 94.1. A compulsory license may not be
applied for on the ground stated in Subsection 93.5 before the expiration of a period of four (4) years from the
date of filing of the application or three (3) years from the date of the patent whichever period expires last.
94.2. A compulsory license which is applied for on any of the grounds stated in Subsections 93.2, 93.3, and 93.4
and Section 97 may be applied for at any time after the grant of the patent. (Sec. 34(1), R.A. No. 165)
Section 95. Requirement to Obtain a License on Reasonable Commercial Terms. - 95.1. The license will only be
granted after the petitioner has made efforts to obtain authorization from the patent owner on reasonable
commercial terms and conditions but such efforts have not been successful within a reasonable period of time.
95.2. The requirement under Subsection 95.1 shall not apply in the following cases:
(a) Where the petition for compulsory license seeks to remedy a practice determined after judicial or
administrative process to be anti-competitive;
(b) In situations of national emergency or other circumstances of extreme urgency;
(c) In cases of public non-commercial use.
95.3. In situations of national emergency or other circumstances of extreme urgency, the right holder shall be
notified as soon as reasonably practicable.
95.4. In the case of public non-commercial use, where the government or contractor, without making a patent
search, knows or has demonstrable grounds to know that a valid patent is or will be used by or for the
government, the right holder shall be informed promptly. (n)
Section 96. Compulsory Licensing of Patents Involving Semi-Conductor Technology. - In the case of
compulsory licensing of patents involving semi-conductor technology, the license may only be granted in case
of public non-commercial use or to remedy a practice determined after judicial or administrative process to be
anti-competitive. (n)
Section 97. Compulsory License Based on Interdependence of Patents. - If the invention protected by a patent,
hereafter referred to as the "second patent," within the country cannot be worked without infringing another
patent, hereafter referred to as the "first patent," granted on a prior application or benefiting from an earlier

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priority, a compulsory license may be granted to the owner of the second patent to the extent necessary for the
working of his invention, subject to the following conditions:
97.1. The invention claimed in the second patent involves an important technical advance of considerable
economic significance in relation to the first patent;
97.2. The owner of the first patent shall be entitled to a cross-license on reasonable terms to use the invention
claimed in the second patent;
97.3. The use authorized in respect of the first patent shall be non-assignable except with the assignment of the
second patent; and
97.4. The terms and conditions of Sections 95, 96 and 98 to 100 of this Act. (Sec. 34-C, R.A. No. 165a)
Section 98. Form and Contents of Petition. - The petition for compulsory licensing must be in writing, verified
by the petitioner and accompanied by payment of the required filing fee. It shall contain the name and address of
the petitioner as well as those of the respondents, the number and date of issue of the patent in connection with
which compulsory license is sought, the name of the patentee, the title of the invention, the statutory grounds
upon which compulsory license is sought, the ultimate facts constituting the petitioner's cause of action, and the
relief prayed for. (Sec. 34-D, R.A. No. 165)
Section 99. Notice of Hearing. - 99.1. Upon filing of a petition, the Director of Legal Affairs shall forthwith
serve notice of the filing thereof upon the patent owner and all persons having grants or licenses, or any other
right, title or interest in and to the patent and invention covered thereby as appears of record in the Office, and of
notice of the date of hearing thereon, on such persons and petitioner. The resident agent or representative
appointed in accordance with Section 33 hereof, shall be bound to accept service of notice of the filing of the
petition within the meaning of this Section.
99.2. In every case, the notice shall be published by the said Office in a newspaper of general circulation, once a
week for three (3) consecutive weeks and once in the IPO Gazette at applicant's expense. (Sec. 34-E, R.A. No.
165)
Section 100. Terms and Conditions of Compulsory License. - The basic terms and conditions including the rate
of royalties of a compulsory license shall be fixed by the Director of Legal Affairs subject to the following
conditions:
100.1. The scope and duration of such license shall be limited to the purpose for which it was authorized;
100.2. The license shall be non-exclusive;
100.3. The license shall be non-assignable, except with that part of the enterprise or business with which the
invention is being exploited;
100.4. Use of the subject matter of the license shall be devoted predominantly for the supply of the Philippine
market: Provided, That this limitation shall not apply where the grant of the license is based on the ground that
the patentee's manner of exploiting the patent is determined by judicial or administrative process, to be anticompetitive.
100.5. The license may be terminated upon proper showing that circumstances which led to its grant have
ceased to exist and are unlikely to recur: Provided, That adequate protection shall be afforded to the legitimate
interest of the licensee; and
100.6. The patentee shall be paid adequate remuneration taking into account the economic value of the grant or
authorization, except that in cases where the license was granted to remedy a practice which was determined
after judicial or administrative process, to be anti-competitive, the need to correct the anti-competitive practice
may be taken into account in fixing the amount of remuneration. (Sec. 35-B, R.A. No. 165a)

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Section 101. Amendment, Cancellation, Surrender of Compulsory License. - 101.1. Upon the request of the
patentee or the licensee, the Director of Legal Affairs may amend the decision granting the compulsory license,
upon proper showing of new facts or circumstances justifying such amendment.
101.2. Upon the request of the patentee, the said Director may cancel the compulsory license:
(a) If the ground for the grant of the compulsory license no longer exists and is unlikely to recur;
(b) If the licensee has neither begun to supply the domestic market nor made serious preparation
therefor;
(c) If the licensee has not complied with the prescribed terms of the license;
101.3. The licensee may surrender the license by a written declaration submitted to the Office.
101.4. The said Director shall cause the amendment, surrender, or cancellation in the Register, notify the
patentee, and/or the licensee, and cause notice thereof to be published in the IPO Gazette. (Sec. 35-D, R.A. No.
165a)
Section 102. Licensee's Exemption from Liability. - Any person who works a patented product, substance and/or
process under a license granted under this Chapter, shall be free from any liability for infringement: Provided
however, That in the case of voluntary licensing, no collusion with the licensor is proven. This is without
prejudice to the right of the rightful owner of the patent to recover from the licensor whatever he may have
received as royalties under the license. (Sec. 35-E, R.A. No. 165a)
CHAPTER XI
ASSIGNMENT AND TRANSMISSION OF RIGHTS
Section 103. Transmission of Rights. - 103.1. Patents or applications for patents and invention to which they
relate, shall be protected in the same way as the rights of other property under the Civil Code.
103.2. Inventions and any right, title or interest in and to patents and inventions covered thereby, may be
assigned or transmitted by inheritance or bequest or may be the subject of a license contract. (Sec. 50, R.A. No.
165a)
Section 104. Assignment of Inventions. - An assignment may be of the entire right, title or interest in and to the
patent and the invention covered thereby, or of an undivided share of the entire patent and invention, in which
event the parties become joint owners thereof. An assignment may be limited to a specified territory. (Sec. 51,
R.A. No. 165)
Section 105. Form of Assignment. - The assignment must be in writing, acknowledged before a notary public or
other officer authorized to administer oath or perform notarial acts, and certified under the hand and official seal
of the notary or such other officer. (Sec. 52, R.A. No. 165)
Section 106. Recording. - 106.1. The Office shall record assignments, licenses and other instruments relating to
the transmission of any right, title or interest in and to inventions, and patents or application for patents or
inventions to which they relate, which are presented in due form to the Office for registration, in books and
records kept for the purpose. The original documents together with a signed duplicate thereof shall be filed, and
the contents thereof should be kept confidential. If the original is not available, an authenticated copy thereof in
duplicate may be filed. Upon recording, the Office shall retain the duplicate, return the original or the
authenticated copy to the party who filed the same and notice of the recording shall be published in the IPO
Gazette.
106.2. Such instruments shall be void as against any subsequent purchaser or mortgagee for valuable
consideration and without notice, unless, it is so recorded in the Office, within three (3) months from the date of
said instrument, or prior to the subsequent purchase or mortgage. (Sec. 53, R.A. No. 165a)

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Section 107. Rights of Joint Owners. - If two (2) or more persons jointly own a patent and the invention covered
thereby, either by the issuance of the patent in their joint favor or by reason of the assignment of an undivided
share in the patent and invention or by reason of the succession in title to such share, each of the joint owners
shall be entitled to personally make, use, sell, or import the invention for his own profit: Provided, however,
That neither of the joint owners shall be entitled to grant licenses or to assign his right, title or interest or part
thereof without the consent of the other owner or owners, or without proportionally dividing the proceeds with
such other owner or owners. (Sec. 54, R.A. No. 165)
CHAPTER XII
REGISTRATION OF UTILITY MODELS
Section 108. Applicability of Provisions Relating to Patents. - 108.1. Subject to Section 109, the provisions
governing patents shall apply, mutatis mutandis, to the registration of utility models.
108.2. Where the right to a patent conflicts with the right to a utility model registration in the case referred to in
Section 29, the said provision shall apply as if the word "patent" were replaced by the words "patent or utility
model registration". (Sec. 55, R.A. No. 165a)
Section 109. Special Provisions Relating to Utility Models. - 109.1. (a) An invention qualifies for registration as
a utility model if it is new and industrially applicable.
(b) Section 21, "Patentable Inventions", shall apply except the reference to inventive step as a condition
of protection.
109.2. Sections 43 to 49 shall not apply in the case of applications for registration of a utility model.
109.3. A utility model registration shall expire, without any possibility of renewal, at the end of the seventh year
after the date of the filing of the application.
109.4. In proceedings under Sections 61 to 64, the utility model registration shall be canceled on the following
grounds:
(a) That the claimed invention does not qualify for registration as a utility model and does not meet the
requirements of registrability, in particular having regard to Subsection 109.1 and Sections 22, 23, 24
and 27;
(b) That the description and the claims do not comply with the prescribed requirements;
(c) That any drawing which is necessary for the understanding of the invention has not been furnished;
(d) That the owner of the utility model registration is not the inventor or his successor in title. (Secs. 55,
56, and 57, R.A. No. 165a)
Section 110. Conversion of Patent Applications or Applications for Utility Model Registration. - 110.1. At any
time before the grant or refusal of a patent, an applicant for a patent may, upon payment of the prescribed fee,
convert his application into an application for registration of a utility model, which shall be accorded the filing
date of the initial application. An application may be converted only once.
110.2. At any time before the grant or refusal of a utility model registration, an applicant for a utility model
registration may, upon payment of the prescribed fee, convert his application into a patent application, which
shall be accorded the filing date of the initial application. (Sec. 58, R.A. No. 165a)
Section 111. Prohibition against Filing of Parallel Applications. - An applicant may not file two (2) applications
for the same subject, one for utility model registration and the other for the grant of a patent whether
simultaneously or consecutively. (Sec. 59, R.A. No. 165a)

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CHAPTER XIII
INDUSTRIAL DESIGN
Section 112. Definition of Industrial Design. - An industrial design is any composition of lines or colors or any
three-dimensional form, whether or not associated-with lines or colors: Provided, That such composition or
form gives a special appearance to and can serve as pattern for an industrial product or handicraft. (Sec. 55, R.A.
No. 165a)
Section 113. Substantive Conditions for Protection. - 113.1. Only industrial designs that are new or original
shall benefit from protection under this Act.
113.2. Industrial designs dictated essentially by technical or functional considerations to obtain a technical result
or those that are contrary to public order, health or morals shall not be protected. (n)
Section 114. Contents of the Application. - 114.1. Every application for registration of an industrial design shall
contain:
(a) A request for registration of the industrial design;
(b) Information identifying the applicant;
(c) An indication of the kind of article of manufacture or handicraft to which the design shall be
applied;
(d) A representation of the article of manufacture or handicraft by way of drawings, photographs or
other adequate graphic representation of the design as applied to the article of manufacture or
handicraft which clearly and fully discloses those features for which design protection is claimed; and
(e) The name and address of the creator, or where the applicant is not the creator, a statement indicating
the origin of the right to the industrial design registration.
114.2. The application may be accompanied by a specimen of the article embodying the industrial design and
shall be subject to the payment of the prescribed fee.(n)
Section 115. Several Industrial Designs in One Application. - Two (2) or more industrial designs may be the
subject of the same application: Provided, That they relate to the same sub-class of the International
Classification or to the same set or composition of articles. (n)
Section 116. Examination. - 116.1. The Office shall accord as the filing date the date of receipt of the
application containing indications allowing the identity of the applicant to be established and a representation of
the article embodying the industrial design or a pictorial representation thereof.
116.2. If the application does not meet these requirements the filing date should be that date when all the
elements specified in Section 105 are filed or the mistakes corrected. Otherwise if the requirements are not
complied within the prescribed period, the application shall be considered withdrawn.
116.3. After the application has been accorded a filing date and the required fees paid on time, the applicant
shall comply with the requirements of Section 114 within the prescribed period, otherwise the application shall
be considered withdrawn.
116.4. The Office shall examine whether the industrial design complies with requirements of Section 112 and
Subsections 113.2 and 113.3. (n)
Section 117. Registration. - 117.1. Where the Office finds that the conditions referred to in Section 113 are
fulfilled, it shall order that registration be effected in the industrial design register and cause the issuance of an
industrial design certificate of registration, otherwise, it shall refuse the application.

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117.2. The form and contents of an industrial design certificate shall be established by the Regulations:
Provided, That the name and address of the creator shall be mentioned in every case.
117.3. Registration shall be published in the form and within the period fixed by the Regulations.
117.4. The Office shall record in the register any change in the identity of the proprietor of the industrial design
or his representative, if proof thereof is furnished to it. A fee shall be paid, with the request to record the change
in the identity of the proprietor. If the fee is not paid, the request shall be deemed not to have been filed. In such
case, the former proprietor and the former representative shall remain subject to the rights and obligations as
provided in this Act.
117.5. Anyone may inspect the Register and the files of registered industrial designs including the files of
cancellation proceedings. (n)
Section 118. The Term of Industrial Design Registration. - 118.1 The registration of an industrial design shall be
for a period of five (5) years from the filing date of the application.
118.2. The registration of an industrial design may be renewed for not more than two (2) consecutive periods of
five (5) years each, by paying the renewal fee.
118.3. The renewal fee shall be paid within twelve (12) months preceding the expiration of the period of
registration. However, a grace period of six (6) months shall be granted for payment of the fees after such
expiration, upon payment of a surcharge
118.4. The Regulations shall fix the amount of renewal fee, the surcharge and other requirements regarding the
recording of renewals of registration.
Section 119. Application of Other Sections and Chapters. - 119.1. The following provisions relating to patents
shall apply mutatis mutandis to an industrial design registration:
Section 21

- Novelty:

Section 24

Section 25

- Non-prejudicial Disclosure;

Section 27

- Inventions Created Pursuant to a Commission;

Section 28

- Right to a Patent;

Section 29

- First to File Rule;

Section 31

Prior art: Provided, That the disclosure is contained in printed documents or in any
tangible form;

Right of Priority: Provided, That the application for industrial design shall be filed within
six (6) months from the earliest filing date of the corresponding foreign application;

Section 33

- Appointment of Agent or Representative;

Section 51

- Refusal of the Application;

Sections 56 to
- Surrender, Correction of and Changes in Patent;
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CHAPTER
VII

- Remedies of a Person with a Right to Patent;

CHAPTER
VIII

- Rights of Patentees and Infringement of Patents; and

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CHAPTER
XI

- Assignment and Transmission of Rights.

119.2. If the essential elements of an industrial design which is the subject of an application have been obtained
from the creation of another person without his consent, protection under this Chapter cannot be invoked against
the injured party. (n)
Section 120. Cancellation of Design Registration. - 120.1. At any time during the term of the industrial design
registration, any person upon payment of the required fee, may petition the Director of Legal Affairs to cancel
the industrial design on any of the following grounds:
(a) If the subject matter of the industrial design is not registrable within the terms of Sections 112 and
113;
(b) If the subject matter is not new; or
(c) If the subject matter of the industrial design extends beyond the content of the application as
originally filed.
120.2. Where the grounds for cancellation relate to a part of the industrial design, cancellation may be effected
to such extent only. The restriction may be effected in the form of an alteration of the effected features of the
design. (n)
PART III
THE LAW ON TRADEMARKS, SERVICE MARKS AND TRADE NAMES
Section 121. Definitions. - As used in Part III, the following terms have the following meanings:
121.1. "Mark" means any visible sign capable of distinguishing the goods (trademark) or services (service mark)
of an enterprise and shall include a stamped or marked container of goods; (Sec. 38, R.A. No. 166a)
121.2. "Collective mark" means any visible sign designated as such in the application for registration and
capable of distinguishing the origin or any other common characteristic, including the quality of goods or
services of different enterprises which use the sign under the control of the registered owner of the collective
mark; (Sec. 40, R.A. No. 166a)
121.3. "Trade name" means the name or designation identifying or distinguishing an enterprise; (Sec. 38, R.A.
No. 166a)
121.4. "Bureau" means the Bureau of Trademarks;
121.5. "Director" means the Director of Trademarks;
121.6. "Regulations" means the Rules of Practice in Trademarks and Service Marks formulated by the Director
of Trademarks and approved by the Director General; and
121.7. "Examiner" means the trademark examiner. (Sec. 38, R.A. No. 166a)
Section 122. How Marks are Acquired. - The rights in a mark shall be acquired through registration made
validly in accordance with the provisions of this law. (Sec. 2-A, R A. No. 166a)
Section 123. Registrability. - 123.1. A mark cannot be registered if it:

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(a) Consists of immoral, deceptive or scandalous matter, or matter which may disparage or falsely
suggest a connection with persons, living or dead, institutions, beliefs, or national symbols, or bring
them into contempt or disrepute;
(b) Consists of the flag or coat of arms or other insignia of the Philippines or any of its political
subdivisions, or of any foreign nation, or any simulation thereof;
(c) Consists of a name, portrait or signature identifying a particular living individual except by his
written consent, or the name, signature, or portrait of a deceased President of the Philippines, during
the life of his widow, if any, except by written consent of the widow;
(d) Is identical with a registered mark belonging to a different proprietor or a mark with an earlier filing
or priority date, in respect of:
(i) The same goods or services, or
(ii) Closely related goods or services, or
(iii) If it nearly resembles such a mark as to be likely to deceive or cause confusion;
(e) Is identical with, or confusingly similar to, or constitutes a translation of a mark which is considered
by the competent authority of the Philippines to be well-known internationally and in the Philippines,
whether or not it is registered here, as being already the mark of a person other than the applicant for
registration, and used for identical or similar goods or services: Provided, That in determining whether
a mark is well-known, account shall be taken of the knowledge of the relevant sector of the public,
rather than of the public at large, including knowledge in the Philippines which has been obtained as a
result of the promotion of the mark;
(f) Is identical with, or confusingly similar to, or constitutes a translation of a mark considered wellknown in accordance with the preceding paragraph, which is registered in the Philippines with respect
to goods or services which are not similar to those with respect to which registration is applied for:
Provided, That use of the mark in relation to those goods or services would indicate a connection
between those goods or services, and the owner of the registered mark: Provided further, That the
interests of the owner of the registered mark are likely to be damaged by such use;
(g) Is likely to mislead the public, particularly as to the nature, quality, characteristics or geographical
origin of the goods or services;
(h) Consists exclusively of signs that are generic for the goods or services that they seek to identify;
(i) Consists exclusively of signs or of indications that have become customary or usual to designate the
goods or services in everyday language or in bona fide and established trade practice;
(j) Consists exclusively of signs or of indications that may serve in trade to designate the kind, quality,
quantity, intended purpose, value, geographical origin, time or production of the goods or rendering of
the services, or other characteristics of the goods or services;
(k) Consists of shapes that may be necessitated by technical factors or by the nature of the goods
themselves or factors that affect their intrinsic value;
(l) Consists of color alone, unless defined by a given form; or
(m) Is contrary to public order or morality.
123.2. As regards signs or devices mentioned in paragraphs (j), (k), and (l), nothing shall prevent the registration
of any such sign or device which has become distinctive in relation to the goods for which registration is
requested as a result of the use that have been made of it in commerce in the Philippines. The Office may accept

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as prima facie evidence that the mark has become distinctive, as used in connection with the applicant's goods or
services in commerce, proof of substantially exclusive and continuous use thereof by the applicant in commerce
in the Philippines for five (5) years before the date on which the claim of distinctiveness is made.
123.3. The nature of the goods to which the mark is applied will not constitute an obstacle to registration. (Sec.
4, R.A. No. 166a)
Section 124. Requirements of Application. - 124.1. The application for the registration of the mark shall be in
Filipino or in English and shall contain the following:
(a) A request for registration;
(b) The name and address of the applicant;
(c) The name of a State of which the applicant is a national or where he has domicile; and the name of a
State in which the applicant has a real and effective industrial or commercial establishment, if any;
(d) Where the applicant is a juridical entity, the law under which it is organized and existing;
(e) The appointment of an agent or representative, if the applicant is not domiciled in the Philippines;
(f) Where the applicant claims the priority of an earlier application, an indication of:
i) The name of the State with whose national office the earlier application was filed or if filed
with an office other than a national office, the name of that office,
ii) The date on which the earlier application was filed, and
iii) Where available, the application number of the earlier application;
(g) Where the applicant claims color as a distinctive feature of the mark, a statement to that effect as
well as the name or names of the color or colors claimed and an indication, in respect of each color, of
the principal parts of the mark which are in that color;
(h) Where the mark is a three-dimensional mark, a statement to that effect;
(i) One or more reproductions of the mark, as prescribed in the Regulations;
(j) A transliteration or translation of the mark or of some parts of the mark, as prescribed in the
Regulations;
(k) The names of the goods or services for which the registration is sought, grouped according to the
classes of the Nice Classification, together with the number of the class of the said Classification to
which each group of goods or services belongs; and
(l) A signature by, or other self-identification of, the applicant or his representative.
124.2. The applicant or the registrant shall file a declaration of actual use of the mark with evidence to that
effect, as prescribed by the Regulations within three (3) years from the filing date of the application. Otherwise,
the application shall be refused or the mark shall be removed from the Register by the Director.
124.3. One (1) application may relate to several goods and/or services, whether they belong to one (1) class or to
several classes of the Nice Classification.

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124.4. If during the examination of the application, the Office finds factual basis to reasonably doubt the
veracity of any indication or element in the application, it may require the applicant to submit sufficient
evidence to remove the doubt. (Sec. 5, R.A. No. 166a)
Section 125. Representation; Address for Service. - If the applicant is not domiciled or has no real and effective
commercial establishment in the Philippines, he shall designate by a written document filed in the Office, the
name and address of a Philippine resident who may be served notices or process in proceedings affecting the
mark. Such notices or services may be served upon the person so designated by leaving a copy thereof at the
address specified in the last designation filed. If the person so designated cannot be found at the address given in
the last designation, such notice or process may be served upon the Director. (Sec. 3, R.A. No. 166a)
Section 126. Disclaimers. - The Office may allow or require the applicant to disclaim an unregistrable
component of an otherwise registrable mark but such disclaimer shall not prejudice or affect the applicant's or
owner's rights then existing or thereafter arising in the disclaimed matter, nor such shall disclaimer prejudice or
affect the applicant's or owner's right on another application of later date if the disclaimed matter became
distinctive of the applicant's or owner's goods, business or services. (Sec. 13, R.A. No. 166a)
Section 127. Filing Date. - 127.1. Requirements. - The filing date of an application shall be the date on which
the Office received the following indications and elements in English or Filipino:
(a) An express or implicit indication that the registration of a mark is sought;
(b) The identity of the applicant;
(c) Indications sufficient to contact the applicant or his representative, if any;
(d) A reproduction of the mark whose registration is sought; and
(e) The list of the goods or services for which the registration is sought.
127.2. No filing date shall be accorded until the required fee is paid. (n)
Section 128. Single Registration for Goods and/or Services. - Where goods and/or services belonging to several
classes of the Nice Classification have been included in one (1) application, such an application shall result in
one registration. (n)
Section 129. Division of Application. - Any application referring to several goods or services, hereafter referred
to as the "initial application," may be divided by the applicant into two (2) or more applications, hereafter
referred to as the "divisional applications," by distributing among the latter the goods or services referred to in
the initial application. The divisional applications shall preserve the filing date of the initial application or the
benefit of the right of priority. (n)
Section 130. Signature and Other Means of Self-Identification. - 130.1. Where a signature is required, the Office
shall accept:
(a) A hand-written signature; or
(b) The use of other forms of signature, such as a printed or stamped signature, or the use of a seal
instead of a hand-written signature: Provided, That where a seal is used, it should be accompanied by
an indication in letters of the name of the signatory.
130.2. The Office shall accept communications to it by telecopier, or by electronic means subject to the
conditions or requirements that will be prescribed by the Regulations. When communications are made by
telefacsimile, the reproduction of the signature, or the reproduction of the seal together with, where required, the
indication in letters of the name of the natural person whose seal is used, appears. The original communications
must be received by the Office within thirty (30) days from date of receipt of the telefacsimile.

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130.3. No attestation, notarization, authentication, legalization or other certification of any signature or other
means of self-identification referred to in the preceding paragraphs, will be required, except, where the signature
concerns the surrender of a registration. (n)
Section 131. Priority Right. - 131.1. An application for registration of a mark filed in the Philippines by a person
referred to in Section 3, and who previously duly filed an application for registration of the same mark in one of
those countries, shall be considered as filed as of the day the application was first filed in the foreign country.
131.2. No registration of a mark in the Philippines by a person described in this section shall be granted until
such mark has been registered in the country of origin of the applicant.
131.3. Nothing in this section shall entitle the owner of a registration granted under this section to sue for acts
committed prior to the date on which his mark was registered in this country: Provided, That, notwithstanding
the foregoing, the owner of a well-known mark as defined in Section 123.1(e) of this Act, that is not registered
in the Philippines, may, against an identical or confusingly similar mark, oppose its registration, or petition the
cancellation of its registration or sue for unfair competition, without prejudice to availing himself of other
remedies provided for under the law.
131.4. In like manner and subject to the same conditions and requirements, the right provided in this section
may be based upon a subsequent regularly filed application in the same foreign country: Provided, That any
foreign application filed prior to such subsequent application has been withdrawn, abandoned, or otherwise
disposed of, without having been laid open to public inspection and without leaving any rights outstanding, and
has not served, nor thereafter shall serve, as a basis for claiming a right of priority. (Sec. 37, R.A. No. 166a)
Section 132. Application Number and Filing Date. - 132.1. The Office shall examine whether the application
satisfies the requirements for the grant of a filing date as provided in Section 127 and Regulations relating
thereto. If the application does not satisfy the filing requirements, the Office shall notify the applicant who shall
within a period fixed by the Regulations complete or correct the application as required, otherwise, the
application shall be considered withdrawn.
132.2 Once an application meets the filing requirements of Section 127, it shall be numbered in the sequential
order, and the applicant shall be informed of the application number and the filing date of the application will be
deemed to have been abandoned. (n)
Section 133. Examination and Publication. - 133.1. Once the application meets the filing requirements of
Section 127, the Office shall examine whether the application meets the requirements of Section 124 and the
mark as defined in Section 121 is registrable under Section 123.
133.2. Where the Office finds that the conditions referred to in Subsection 133.1 are fulfilled, it shall upon
payment of the prescribed fee, forthwith cause the application, as filed, to be published in the prescribed manner.
133.3. If after the examination, the applicant is not entitled to registration for any reason, the Office shall advise
the applicant thereof and the reasons therefor. The applicant shall have a period of four (4) months in which to
reply or amend his application, which shall then be re-examined. The Regulations shall determine the procedure
for the re-examination or revival of an application as well as the appeal to the Director of Trademarks from any
final action by the Examiner.
133.4. An abandoned application may be revived as a pending application within three (3) months from the date
of abandonment, upon good cause shown and the payment of the required fee.
133.5. The final decision of refusal of the Director of Trademarks shall be appealable to the Director General in
accordance with the procedure fixed by the Regulations. (Sec. 7, R.A. No. 166a)
Section 134. Opposition. - Any person who believes that he would be damaged by the registration of a mark
may, upon payment of the required fee and within thirty (30) days after the publication referred to in Subsection
133.2, file with the Office an opposition to the application. Such opposition shall be in writing and verified by
the oppositor or by any person on his behalf who knows the facts, and shall specify the grounds on which it is
based and include a statement of the facts relied upon. Copies of certificates of registration of marks registered

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in other countries or other supporting documents mentioned in the opposition shall be filed therewith, together
with the translation in English, if not in the English language. For good cause shown and upon payment of the
required surcharge, the time for filing an opposition may be extended by the Director of Legal Affairs, who shall
notify the applicant of such extension. The Regulations shall fix the maximum period of time within which to
file the opposition. (Sec. 8, R.A. No. 165a)
Section 135. Notice and Hearing. - Upon the filing of an opposition, the Office shall serve notice of the filing
on the applicant, and of the date of the hearing thereof upon the applicant and the oppositor and all other persons
having any right, title or interest in the mark covered by the application, as appear of record in the Office. (Sec.
9, R.A. No. 165)
Section 136. Issuance and Publication of Certificate. - When the period for filing the opposition has expired, or
when the Director of Legal Affairs shall have denied the opposition, the Office upon payment of the required
fee, shall issue the certificate of registration. Upon issuance of a certificate of registration, notice thereof making
reference to the publication of the application shall be published in the IPO Gazette. (Sec. 10, R.A. No. 165)
Section 137. Registration of Mark and Issuance of a Certificate to the Owner or his Assignee. - 137.1. The
Office shall maintain a Register in which shall be registered marks, numbered in the order of their registration,
and all transactions in respect of each mark, required to be recorded by virtue of this law.
137.2. The registration of a mark shall include a reproduction of the mark and shall mention: its number; the
name and address of the registered owner and, if the registered owner's address is outside the country, his
address for service within the country; the dates of application and registration; if priority is claimed, an
indication of this fact, and the number, date and country of the application, basis of the priority claims; the list of
goods or services in respect of which registration has been granted, with the indication of the corresponding
class or classes; and such other data as the Regulations may prescribe from time to time.
137.3. A certificate of registration of a mark may be issued to the assignee of the applicant: Provided, That the
assignment is recorded in the Office. In case of a change of ownership, the Office shall at the written request
signed by the owner, or his representative, or by the new owner, or his representative and upon a proper showing
and the payment of the prescribed fee, issue to such assignee a new certificate of registration of the said mark in
the name of such assignee, and for the unexpired part of the original period.
137.4. The Office shall record any change of address, or address for service, which shall be notified to it by the
registered owner.
137.5. In the absence of any provision to the contrary in this Act, communications to be made to the registered
owner by virtue of this Act shall be sent to him at his last recorded address and, at the same, at his last recorded
address for service. (Sec. 19, R.A. No. 166a)
Section 138. Certificates of Registration. - A certificate of registration of a mark shall be prima facie evidence
of the validity of the registration, the registrant's ownership of the mark, and of the registrant's exclusive right to
use the same in connection with the goods or services and those that are related thereto specified in the
certificate. (Sec. 20, R.A. No. 165)
Section 139. Publication of Registered Marks; Inspection of Register. - 139.1. The Office shall publish, in the
form and within the period fixed by the Regulations, the marks registered, in the order of their registration,
reproducing all the particulars referred to in Subsection 137.2.
139.2. Marks registered at the Office may be inspected free of charge and any person may obtain copies thereof
at his own expense. This provision shall also be applicable to transactions recorded in respect of any registered
mark. (n)
Section 140. Cancellation upon Application by Registrant; Amendment or Disclaimer of Registration. - Upon
application of the registrant, the Office may permit any registration to be surrendered for cancellation, and upon
cancellation the appropriate entry shall be made in the records of the Office. Upon application of the registrant
and payment of the prescribed fee, the Office for good cause may permit any registration to be amended or to be
disclaimed in part: Provided, That the amendment or disclaimer does not alter materially the character of the

81

mark. Appropriate entry shall be made in the records of the Office upon the certificate of registration or, if said
certificate is lost or destroyed, upon a certified copy thereof (Sec. 14, R.A. No. 166)
Section 141. Sealed and Certified Copies as Evidence. - Copies of any records, books, papers, or drawings
belonging to the Office relating to marks, and copies of registrations, when authenticated by the seal of the
Office and certified by the Director of the Administrative, Financial and Human Resource Development Service
Bureau or in his name by an employee of the Office duly authorized by said Director, shall be evidence in all
cases wherein the originals would be evidence; and any person who applies and pays the prescribed fee shall
secure such copies. (n)
Section 142. Correction of Mistakes Made by the Office. - Whenever a material mistake in a registration
incurred through the fault of the Office is clearly disclosed by the records of the Office, a certificate stating the
fact and nature of such mistake shall be issued without charge, recorded and a printed copy thereof shall be
attached to each printed copy of the registration. Such corrected registration shall thereafter have the same effect
as the original certificate; or in the discretion of the Director of the Administrative, Financial and Human
Resource Development Service Bureau a new certificate of registration may be issued without charge. All
certificates of correction heretofore issued in accordance with the Regulations and the registration to which they
are attached shall have the same force and effect as if such certificates and their issuance had been authorized by
this Act. (n)
Section 143. Correction of Mistakes Made by Applicant. - Whenever a mistake is made in a registration and
such mistake occurred in good faith through the fault of the applicant, the Office may issue a certificate upon the
payment of the prescribed fee: Provided, That the correction does not involve any change in the registration that
requires republication of the mark. (n)
Section 144. Classification of Goods and Services. - 144.1. Each registration, and any publication of the Office
which concerns an application or registration effected by the Office shall indicate the goods or services by their
names, grouped according to the classes of the Nice Classification, and each group shall be preceded by the
number of the class of that Classification to which that group of goods or services belongs, presented in the
order of the classes of the said Classification.
144.2. Goods or services may not be considered as being similar or dissimilar to each other on the ground that,
in any registration or publication by the Office, they appear in different classes of the Nice Classification. (Sec.
6, R.A. No. 166a)
Section 145. Duration. - A certificate of registration shall remain in force for ten (10) years: Provided, That the
registrant shall file a declaration of actual use and evidence to that effect, or shall show valid reasons based on
the existence of obstacles to such use, as prescribed by the Regulations, within one (1) year from the fifth
anniversary of the date of the registration of the mark. Otherwise, the mark shall be removed from the Register
by the Office. (Sec. 12, R.A. No. 166a)
Section 146. Renewal. - 146.1. A certificate of registration may be renewed for periods of ten (10) years at its
expiration upon payment of the prescribed fee and upon filing of a request. The request shall contain the
following indications:
(a) An indication that renewal is sought;
(b) The name and address of the registrant or his successor-in-interest, hereafter referred to as the "right
holder";
(c) The registration number of the registration concerned;
(d) The filing date of the application which resulted in the registration concerned to be renewed;
(e) Where the right holder has a representative, the name and address of that representative;

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(f) The names of the recorded goods or services for which the renewal is requested or the names of the
recorded goods or services for which the renewal is not requested, grouped according to the classes of
the Nice Classification to which that group of goods or services belongs and presented in the order of
the classes of the said Classification; and
(g) A signature by the right holder or his representative.
146.2. Such request shall be in Filipino or English and may be made at any time within six (6) months before
the expiration of the period for which the registration was issued or renewed, or it may be made within six (6)
months after such expiration on payment of the additional fee herein prescribed.
146.3. If the Office refuses to renew the registration, it shall notify the registrant of his refusal and the reasons
therefor.
146.4. An applicant for renewal not domiciled in the Philippines shall be subject to and comply with the
requirements of this Act. (Sec. 15, R.A. No. 166a)
Section 147. Rights Conferred. - 147.1. The owner of a registered mark shall have the exclusive right to prevent
all third parties not having the owner's consent from using in the course of trade identical or similar signs or
containers for goods or services which are identical or similar to those in respect of which the trademark is
registered where such use would result in a likelihood of confusion. In case of the use of an identical sign for
identical goods or services, a likelihood of confusion shall be presumed.
147.2. The exclusive right of the owner of a well-known mark defined in Subsection 123.1(e) which is
registered in the Philippines, shall extend to goods and services which are not similar to those in respect of
which the mark is registered: Provided, That use of that mark in relation to those goods or services would
indicate a connection between those goods or services and the owner of the registered mark: Provided further,
That the interests of the owner of the registered mark are likely to be damaged by such use. (n)
Section 148. Use of Indications by Third Parties for Purposes Other than those for which the Mark is Used. Registration of the mark shall not confer on the registered owner the right to preclude third parties from using
bona fide their names, addresses, pseudonyms, a geographical name, or exact indications concerning the kind,
quality, quantity, destination, value, place of origin, or time of production or of supply, of their goods or
services: Provided, That such use is confined to the purposes of mere identification or information and cannot
mislead the public as to the source of the goods or services. (n)
Section 149. Assignment and Transfer of Application and Registration. - 149.1. An application for registration
of a mark, or its registration, may be assigned or transferred with or without the transfer of the business using
the mark. (n)
149.2. Such assignment or transfer shall, however, be null and void if it is liable to mislead the public,
particularly as regards the nature, source, manufacturing process, characteristics, or suitability for their purpose,
of the goods or services to which the mark is applied.
149.3. The assignment of the application for registration of a mark, or of its registration, shall be in writing and
require the signatures of the contracting parties. Transfers by mergers or other forms of succession may be made
by any document supporting such transfer.
149.4. Assignments and transfers of registrations of marks shall be recorded at the Office on payment of the
prescribed fee; assignment and transfers of applications for registration shall, on payment of the same fee, be
provisionally recorded, and the mark, when registered, shall be in the name of the assignee or transferee.
149.5. Assignments and transfers shall have no effect against third parties until they are recorded at the Office.
(Sec. 31, R.A. No. 166a)
Section 150. License Contracts. - 150.1. Any license contract concerning the registration of a mark, or an
application therefor, shall provide for effective control by the licensor of the quality of the goods or services of

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the licensee in connection with which the mark is used. If the license contract does not provide for such quality
control, or if such quality control is not effectively carried out, the license contract shall not be valid.
150.2. A license contract shall be submitted to the Office which shall keep its contents confidential but shall
record it and publish a reference thereto. A license contract shall have no effect against third parties until such
recording is effected. The Regulations shall fix the procedure for the recording of the license contract. (n)
Section 151. Cancellation. - 151.1. A petition to cancel a registration of a mark under this Act may be filed with
the Bureau of Legal Affairs by any person who believes that he is or will be damaged by the registration of a
mark under this Act as follows:
(a) Within five (5) years from the date of the registration of the mark under this Act.
(b) At any time, if the registered mark becomes the generic name for the goods or services, or a portion
thereof, for which it is registered, or has been abandoned, or its registration was obtained fraudulently
or contrary to the provisions of this Act, or if the registered mark is being used by, or with the
permission of, the registrant so as to misrepresent the source of the goods or services on or in
connection with which the mark is used. If the registered mark becomes the generic name for less than
all of the goods or services for which it is registered, a petition to cancel the registration for only those
goods or services may be filed. A registered mark shall not be deemed to be the generic name of goods
or services solely because such mark is also used as a name of or to identify a unique product or
service. The primary significance of the registered mark to the relevant public rather than purchaser
motivation shall be the test for determining whether the registered mark has become the generic name
of goods or services on or in connection with which it has been used. (n)
(c) At any time, if the registered owner of the mark without legitimate reason fails to use the mark
within the Philippines, or to cause it to be used in the Philippines by virtue of a license during an
uninterrupted period of three (3) years or longer.
151.2. Notwithstanding the foregoing provisions, the court or the administrative agency vested with jurisdiction
to hear and adjudicate any action to enforce the rights to a registered mark shall likewise exercise jurisdiction to
determine whether the registration of said mark may be cancelled in accordance with this Act. The filing of a
suit to enforce the registered mark with the proper court or agency shall exclude any other court or agency from
assuming jurisdiction over a subsequently filed petition to cancel the same mark. On the other hand, the earlier
filing of petition to cancel the mark with the Bureau of Legal Affairs shall not constitute a prejudicial question
that must be resolved before an action to enforce the rights to same registered mark may be decided. (Sec. 17,
R.A. No. 166a)
Section 152. Non-use of a Mark When Excused. - 152.1. Non-use of a mark may be excused if caused by
circumstances arising independently of the will of the trademark owner. Lack of funds shall not excuse non-use
of a mark.
152.2. The use of the mark in a form different from the form in which it is registered, which does not alter its
distinctive character, shall not be ground for cancellation or removal of the mark and shall not diminish the
protection granted to the mark.
152.3. The use of a mark in connection with one or more of the goods or services belonging to the class in
respect of which the mark is registered shall prevent its cancellation or removal in respect of all other goods or
services of the same class.
152.4. The use of a mark by a company related with the registrant or applicant shall inure to the latter's benefit,
and such use shall not affect the validity of such mark or of its registration: Provided, That such mark is not used
in such manner as to deceive the public. If use of a mark by a person is controlled by the registrant or applicant
with respect to the nature and quality of the goods or services, such use shall inure to the benefit of the registrant
or applicant. (n)

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Section 153. Requirements of Petition; Notice and Hearing. - Insofar as applicable, the petition for cancellation
shall be in the same form as that provided in Section 134 hereof, and notice and hearing shall be as provided in
Section 135 hereof.
Section 154. Cancellation of Registration. - If the Bureau of Legal Affairs finds that a case for cancellation has
been made out, it shall order the cancellation of the registration. When the order or judgment becomes final, any
right conferred by such registration upon the registrant or any person in interest of record shall terminate. Notice
of cancellation shall be published in the IPO Gazette. (Sec. 19, R.A. No. 166a)
Section 155. Remedies; Infringement. - Any person who shall, without the consent of the owner of the registered
mark:
155.1. Use in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered mark or the
same container or a dominant feature thereof in connection with the sale, offering for sale, distribution,
advertising of any goods or services including other preparatory steps necessary to carry out the sale of any
goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to
deceive; or
155.2. Reproduce, counterfeit, copy or colorably imitate a registered mark or a dominant feature thereof and
apply such reproduction, counterfeit, copy or colorable imitation to labels, signs, prints, packages, wrappers,
receptacles or advertisements intended to be used in commerce upon or in connection with the sale, offering for
sale, distribution, or advertising of goods or services on or in connection with which such use is likely to cause
confusion, or to cause mistake, or to deceive, shall be liable in a civil action for infringement by the registrant
for the remedies hereinafter set forth: Provided, That the infringement takes place at the moment any of the acts
stated in Subsection 155.1 or this subsection are committed regardless of whether there is actual sale of goods or
services using the infringing material. (Sec. 22, R.A. No 166a)
Section 156. Actions, and Damages and Injunction for Infringement. - 156.1. The owner of a registered mark
may recover damages from any person who infringes his rights, and the measure of the damages suffered shall
be either the reasonable profit which the complaining party would have made, had the defendant not infringed
his rights, or the profit which the defendant actually made out of the infringement, or in the event such measure
of damages cannot be readily ascertained with reasonable certainty, then the court may award as damages a
reasonable percentage based upon the amount of gross sales of the defendant or the value of the services in
connection with which the mark or trade name was used in the infringement of the rights of the complaining
party. (Sec. 23, first par., R.A. No. 166a)
156.2. On application of the complainant, the court may impound during the pendency of the action, sales
invoices and other documents evidencing sales. (n)
156.3. In cases where actual intent to mislead the public or to defraud the complainant is shown, in the
discretion of the court, the damages may be doubled. (Sec. 23, first par., R.A. No. 166)
156.4. The complainant, upon proper showing, may also be granted injunction. (Sec. 23, second par., R.A. No.
166a)
Section 157. Power of Court to Order Infringing Material Destroyed. - 157.1 In any action arising under this
Act, in which a violation of any right of the owner of the registered mark is established, the court may order that
goods found to be infringing be, without compensation of any sort, disposed of outside the channels of
commerce in such a manner as to avoid any harm caused to the right holder, or destroyed; and all labels, signs,
prints, packages, wrappers, receptacles and advertisements in the possession of the defendant, bearing the
registered mark or trade name or any reproduction, counterfeit, copy or colorable imitation thereof, all plates,
molds, matrices and other means of making the same, shall be delivered up and destroyed.
157.2. In regard to counterfeit goods, the simple removal of the trademark affixed shall not be sufficient other
than in exceptional cases which shall be determined by the Regulations, to permit the release of the goods into
the channels of commerce. (Sec. 24, R.A. No. 166a)

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Section 158. Damages; Requirement of Notice. - In any suit for infringement, the owner of the registered mark
shall not be entitled to recover profits or damages unless the acts have been committed with knowledge that
such imitation is likely to cause confusion, or to cause mistake, or to deceive. Such knowledge is presumed if
the registrant gives notice that his mark is registered by displaying with the mark the words '"Registered Mark"
or the letter R within a circle or if the defendant had otherwise actual notice of the registration. (Sec. 21, R.A.
No. 166a)
Section 159. Limitations to Actions for Infringement. - Notwithstanding any other provision of this Act, the
remedies given to the owner of a right infringed under this Act shall be limited as follows:
159.1. Notwithstanding the provisions of Section 155 hereof, a registered mark shall have no effect against any
person who, in good faith, before the filing date or the priority date, was using the mark for the purposes of his
business or enterprise: Provided, That his right may only be transferred or assigned together with his enterprise
or business or with that part of his enterprise or business in which the mark is used.
159.2. Where an infringer who is engaged solely in the business of printing the mark or other infringing
materials for others is an innocent infringer, the owner of the right infringed shall be entitled as against such
infringer only to an injunction against future printing.
159.3. Where the infringement complained of is contained in or is part of paid advertisement in a newspaper,
magazine, or other similar periodical or in an electronic communication, the remedies of the owner of the right
infringed as against the publisher or distributor of such newspaper, magazine, or other similar periodical or
electronic communication shall be limited to an injunction against the presentation of such advertising matter in
future issues of such newspapers, magazines, or other similar periodicals or in future transmissions of such
electronic communications. The limitations of this subparagraph shall apply only to innocent infringers:
Provided, That such injunctive relief shall not be available to the owner of the right infringed with respect to an
issue of a newspaper, magazine, or other similar periodical or an electronic communication containing
infringing matter where restraining the dissemination of such infringing matter in any particular issue of such
periodical or in an electronic communication would delay the delivery of such issue or transmission of such
electronic communication is customarily conducted in accordance with the sound business practice, and not due
to any method or device adopted to evade this section or to prevent or delay the issuance of an injunction or
restraining order with respect to such infringing matter. (n)
Section 160. Right of Foreign Corporation to Sue in Trademark or Service Mark Enforcement Action. - Any
foreign national or juridical person who meets the requirements of Section 3 of this Act and does not engage in
business in the Philippines may bring a civil or administrative action hereunder for opposition, cancellation,
infringement, unfair competition, or false designation of origin and false description, whether or not it is
licensed to do business in the Philippines under existing laws. (Sec. 21-A, R.A. No. 166a)
Section 161. Authority to Determine Right to Registration. - In any action involving a registered mark, the court
may determine the right to registration, order the cancellation of a registration, in whole or in part, and otherwise
rectify the register with respect to the registration of any party to the action in the exercise of this. Judgment and
orders shall be certified by the court to the Director, who shall make appropriate entry upon the records of the
Bureau, and shall be controlled thereby. (Sec. 25, R.A. No. 166a)
Section 162. Action for False or Fraudulent Declaration. - Any person who shall procure registration in the
Office of a mark by a false or fraudulent declaration or representation, whether oral or in writing, or by any false
means, shall be liable in a civil action by any person injured thereby for any damages sustained in consequence
thereof (Sec. 26, R.A. No. 166)
Section 163. Jurisdiction of Court. - All actions under Sections 150, 155, 164, and 166 to 169 shall be brought
before the proper courts with appropriate jurisdiction under existing laws. (Sec. 27, R.A. No. 166)
Section 164. Notice of Filing Suit Given to the Director. - It shall be the duty of the clerks of such courts within
one (1) month after the filing of any action, suit, or proceeding involving a mark registered under the provisions
of this Act, to notify the Director in writing setting forth: the names and addresses of the litigants and
designating the number of the registration or registrations and within one (1) month after the judgment is entered
or an appeal is taken, the clerk of court shall give notice thereof to the Office, and the latter shall endorse the

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same upon the filewrapper of the said registration or registrations and incorporate the same as a part of the
contents of said filewrapper. (n)
Section 165. Trade Names or Business Names. - 165.1. A name or designation may not be used as a trade name
if by its nature or the use to which such name or designation may be put, it is contrary to public order or morals
and if, in particular, it is liable to deceive trade circles or the public as to the nature of the enterprise identified
by that name.
165.2.(a) Notwithstanding any laws or regulations providing for any obligation to register trade names, such
names shall be protected, even prior to or without registration, against any unlawful act committed by third
parties.
(b) In particular, any subsequent use of the trade name by a third party, whether as a trade name or a
mark or collective mark, or any such use of a similar trade name or mark, likely to mislead the public,
shall be deemed unlawful.
165.3. The remedies provided for in Sections 153 to 156 and Sections 166 and 167 shall apply mutatis mutandis.
165.4. Any change in the ownership of a trade name shall be made with the transfer of the enterprise or part
thereof identified by that name. The provisions of Subsections 149.2 to 149.4 shall apply mutatis mutandis.
Section 166. Goods Bearing Infringing Marks or Trade Names. - No article of imported merchandise which
shall copy or simulate the name of any domestic product, or manufacturer, or dealer, or which shall copy or
simulate a mark registered in accordance with the provisions of this Act, or shall bear a mark or trade name
calculated to induce the public to believe that the article is manufactured in the Philippines, or that it is
manufactured in any foreign country or locality other than the country or locality where it is in fact
manufactured, shall be admitted to entry at any customhouse of the Philippines. In order to aid the officers of the
customs service in enforcing this prohibition, any person who is entitled to the benefits of this Act, may require
that his name and residence, and the name of the locality in which his goods are manufactured, a copy of the
certificate of registration of his mark or trade name, to be recorded in books which shall be kept for this purpose
in the Bureau of Customs, under such regulations as the Collector of Customs with the approval of the Secretary
of Finance shall prescribe, and may furnish to the said Bureau facsimiles of his name, the name of the locality in
which his goods are manufactured, or his registered mark or trade name, and thereupon the Collector of
Customs shall cause one (1) or more copies of the same to be transmitted to each collector or to other proper
officer of the Bureau of Customs. (Sec. 35, R.A. No. 166)
Section 167. Collective Marks. - 167.1. Subject to Subsections 167.2 and 167.3, Sections 122 to 164 and 166
shall apply to collective marks, except that references therein to "mark" shall be read as "collective mark".
167.2.(a) An application for registration of a collective mark shall designate the mark as a collective mark and
shall be accompanied by a copy of the agreement, if any, governing the use of the collective mark.
(b) The registered owner of a collective mark shall notify the Director of any changes made in respect
of the agreement referred to in paragraph (a).
167.3. In addition to the grounds provided in Section 149, the Court shall cancel the registration of a collective
mark if the person requesting the cancellation proves that only the registered owner uses the mark, or that he
uses or permits its use in contravention of the agreements referred to in Subsection 166.2 or that he uses or
permits its use in a manner liable to deceive trade circles or the public as to the origin or any other common
characteristics of the goods or services concerned.
167.4. The registration of a collective mark, or an application therefor shall not be the subject of a license
contract. (Sec. 40, R.A. No. 166a)
Section 168. Unfair Competition, Rights, Regulation and Remedies. - 168.1. A person who has identified in the
mind of the public the goods he manufactures or deals in, his business or services from those of others, whether
or not a registered mark is employed, has a property right in the goodwill of the said goods, business or services
so identified, which will be protected in the same manner as other property rights.

87

168.2. Any person who shall employ deception or any other means contrary to good faith by which he shall pass
off the goods manufactured by him or in which he deals, or his business, or services for those of the one having
established such goodwill, or who shall commit any acts calculated to produce said result, shall be guilty of
unfair competition, and shall be subject to an action therefor.
168.3. In particular, and without in any way limiting the scope of protection against unfair competition, the
following shall be deemed guilty of unfair competition:
(a) Any person, who is selling his goods and gives them the general appearance of goods of another
manufacturer or dealer, either as to the goods themselves or in the wrapping of the packages in which
they are contained, or the devices or words thereon, or in any other feature of their appearance, which
would be likely to influence purchasers to believe that the goods offered are those of a manufacturer or
dealer, other than the actual manufacturer or dealer, or who otherwise clothes the goods with such
appearance as shall deceive the public and defraud another of his legitimate trade, or any subsequent
vendor of such goods or any agent of any vendor engaged in selling such goods with a like purpose;
(b) Any person who by any artifice, or device, or who employs any other means calculated to induce
the false belief that such person is offering the services of another who has identified such services in
the mind of the public; or
(c) Any person who shall make any false statement in the course of trade or who shall commit any
other act contrary to good faith of a nature calculated to discredit the goods, business or services of
another.
168.4. The remedies provided by Sections 156, 157 and 161 shall apply mutatis mutandis. (Sec. 29, R.A. No.
166a)
Section 169. False Designations of Origin; False Description or Representation. - 169.1. Any person who, on
or in connection with any goods or services, or any container for goods, uses in commerce any word, term,
name, symbol, or device, or any combination thereof, or any false designation of origin, false or misleading
description of fact, or false or misleading representation of fact, which:
(a) Is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or
association of such person with another person, or as to the origin, sponsorship, or approval of his or
her goods, services, or commercial activities by another person; or
(b) In commercial advertising or promotion, misrepresents the nature, characteristics, qualities, or
geographic origin of his or her or another person's goods, services, or commercial activities, shall be
liable to a civil action for damages and injunction provided in Sections 156 and 157 of this Act by any
person who believes that he or she is or is likely to be damaged by such act.
169.2. Any goods marked or labelled in contravention of the provisions of this Section shall not be imported into
the Philippines or admitted entry at any customhouse of the Philippines. The owner, importer, or consignee of
goods refused entry at any customhouse under this section may have any recourse under the customs revenue
laws or may have the remedy given by this Act in cases involving goods refused entry or seized. (Sec. 30, R.A.
No. 166a)
Section 170. Penalties. - Independent of the civil and administrative sanctions imposed by law, a criminal
penalty of imprisonment from two (2) years to five (5) years and a fine ranging from Fifty thousand pesos
(P50,000) to Two hundred thousand pesos(P200,000), shall be imposed on any person who is found guilty of
committing any of the acts mentioned in Section 155, Section 168 and Subsection 169.1. (Arts. 188 and 189,
Revised Penal Code)
PART IV
THE LAW ON COPYRIGHT
CHAPTER I
PRELIMINARY PROVISIONS

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Section 171. Definitions. - For the purpose of this Act, the following terms have the following meaning:
171.1. "Author" is the natural person who has created the work;
171.2. A "collective work" is a work which has been created by two (2) or more natural persons at the initiative
and under the direction of another with the understanding that it will be disclosed by the latter under his own
name and that contributing natural persons will not be identified;
171.3. "Communication to the public" or "communicate to the public" means the making of a work available to
the public by wire or wireless means in such a way that members of the public may access these works from a
place and time individually chosen by them;
171.4. A "computer" is an electronic or similar device having information-processing capabilities, and a
"computer program" is a set of instructions expressed in words, codes, schemes or in any other form, which is
capable when incorporated in a medium that the computer can read, of causing the computer to perform or
achieve a particular task or result;
171.5. "Public lending" is the transfer of possession of the original or a copy of a work or sound recording for a
limited period, for non-profit purposes, by an institution the services of which are available to the public, such
as public library or archive;
171.6. "Public performance", in the case of a work other than an audiovisual work, is the recitation, playing,
dancing, acting or otherwise performing the work, either directly or by means of any device or process; in the
case of an audiovisual work, the showing of its images in sequence and the making of the sounds accompanying
it audible; and, in the case of a sound recording, making the recorded sounds audible at a place or at places
where persons outside the normal circle of a family and that family's closest social acquaintances are or can be
present, irrespective of whether they are or can be present at the same place and at the same time, or at different
places and/or at different times, and where the performance can be perceived without the need for
communication within the meaning of Subsection 171.3;
171.7. "Published works" means works, which, with the consent of the authors, are made available to the public
by wire or wireless means in such a way that members of the public may access these works from a place and
time individually chosen by them: Provided, That availability of such copies has been such, as to satisfy the
reasonable requirements of the public, having regard to the nature of the work;
171.8. "Rental" is the transfer of the possession of the original or a copy of a work or a sound recording for a
limited period of time, for profit-making purposes;
171.9. "Reproduction" is the making of one (1) or more copies of a work or a sound recording in any manner or
form (Sec. 41 (E), P.D. No. 49 a);
171.10. A "work of applied art" is an artistic creation with utilitarian functions or incorporated in a useful article,
whether made by hand or produced on an industrial scale;
171.11. A "work of the Government of the Philippines" is a work created by an officer or employee of the
Philippine Government or any of its subdivisions and instrumentalities, including government-owned or
controlled corporations as a part of his regularly prescribed official duties.
CHAPTER II
ORIGINAL WORKS
Section 172. Literary and Artistic Works. - 172.1. Literary and artistic works, hereinafter referred to as "works",
are original intellectual creations in the literary and artistic domain protected from the moment of their creation
and shall include in particular:
(a) Books, pamphlets, articles and other writings;

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(b) Periodicals and newspapers;


(c) Lectures, sermons, addresses, dissertations prepared for oral delivery, whether or not reduced in
writing or other material form;
(d) Letters;
(e) Dramatic or dramatico-musical compositions; choreographic works or entertainment in dumb
shows;
(f) Musical compositions, with or without words;
(g) Works of drawing, painting, architecture, sculpture, engraving, lithography or other works of art;
models or designs for works of art;
(h) Original ornamental designs or models for articles of manufacture, whether or not registrable as an
industrial design, and other works of applied art;
(i) Illustrations, maps, plans, sketches, charts and three-dimensional works relative to geography,
topography, architecture or science;
(j) Drawings or plastic works of a scientific or technical character;
(k) Photographic works including works produced by a process analogous to photography; lantern
slides;
(l) Audiovisual works and cinematographic works and works produced by a process analogous to
cinematography or any process for making audio-visual recordings;
(m) Pictorial illustrations and advertisements;
(n) Computer programs; and
(o) Other literary, scholarly, scientific and artistic works.
172.2. Works are protected by the sole fact of their creation, irrespective of their mode or form of expression, as
well as of their content, quality and purpose. (Sec. 2, P.D. No. 49a)
CHAPTER III
DERIVATIVE WORKS
Section 173. Derivative Works. - 173.1. The following derivative works shall also be protected by copyright:
(a) Dramatizations, translations, adaptations, abridgments, arrangements, and other alterations of
literary or artistic works; and
(b) Collections of literary, scholarly or artistic works, and compilations of data and other materials
which are original by reason of the selection or coordination or arrangement of their contents. (Sec. 2,
[P] and [Q], P.D. No. 49)
173.2. The works referred to in paragraphs (a) and (b) of Subsection 173.1 shall be protected as new works:
Provided however, That such new work shall not affect the force of any subsisting copyright upon the original
works employed or any part thereof, or be construed to imply any right to such use of the original works, or to
secure or extend copyright in such original works. (Sec. 8, P.D. 49; Art. 10, TRIPS)

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Section 174. Published Edition of Work. - In addition to the right to publish granted by the author, his heirs, or
assigns, the publisher shall have a copyright consisting merely of the right of reproduction of the typographical
arrangement of the published edition of the work. (n)
CHAPTER IV
WORKS NOT PROTECTED
Section 175. Unprotected Subject Matter. - Notwithstanding the provisions of Sections 172 and 173, no
protection shall extend, under this law, to any idea, procedure, system, method or operation, concept, principle,
discovery or mere data as such, even if they are expressed, explained, illustrated or embodied in a work; news of
the day and other miscellaneous facts having the character of mere items of press information; or any official
text of a legislative, administrative or legal nature, as well as any official translation thereof (n)
Section 176. Works of the Government. - 176.1. No copyright shall subsist in any work of the Government of
the Philippines. However, prior approval of the government agency or office wherein the work is created shall
be necessary for exploitation of such work for profit. Such agency or office may, among other things, impose as
a condition the payment of royalties. No prior approval or conditions shall be required for the use of any
purpose of statutes, rules and regulations, and speeches, lectures, sermons, addresses, and dissertations,
pronounced, read or rendered in courts of justice, before administrative agencies, in deliberative assemblies and
in meetings of public character. (Sec. 9, first par., P.D. No. 49)
176.2. The author of speeches, lectures, sermons, addresses, and dissertations mentioned in the preceding
paragraphs shall have the exclusive right of making a collection of his works. (n)
176.3. Notwithstanding the foregoing provisions, the Government is not precluded from receiving and holding
copyrights transferred to it by assignment, bequest or otherwise; nor shall publication or republication by the
Government in a public document of any work in which copyright is subsisting be taken to cause any
abridgment or annulment of the copyright or to authorize any use or appropriation of such work without the
consent of the copyright owner. (Sec. 9, third par., P.D. No. 49)
CHAPTER V
COPYRIGHT OR ECONOMIC RIGHTS
Section 177. Copyright or Economic Rights. - Subject to the provisions of Chapter VIII, copyright or economic
rights shall consist of the exclusive right to carry out, authorize or prevent the following acts:
177.1. Reproduction of the work or substantial portion of the work;
177.2. Dramatization, translation, adaptation, abridgment, arrangement or other transformation of the work;
177.3. The first public distribution of the original and each copy of the work by sale or other forms of transfer of
ownership;
177.4. Rental of the original or a copy of an audiovisual or cinematographic work, a work embodied in a sound
recording, a computer program, a compilation of data and other materials or a musical work in graphic form,
irrespective of the ownership of the original or the copy which is the subject of the rental; (n)
177.5. Public display of the original or a copy of the work;
177.6. Public performance of the work; and
177.7. Other communication to the public of the work. (Sec. 5, P. D. No. 49a)
CHAPTER VI
OWNERSHIP OF COPYRIGHT
Section 178. Rules on Copyright Ownership. - Copyright ownership shall be governed by the following rules:

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178.1 Subject to the provisions of this section, in the case of original literary and artistic works, copyright shall
belong to the author of the work;
178.2. In the case of works of joint authorship, the co-authors shall be the original owners of the copyright and
in the absence of agreement, their rights shall be governed by the rules on co-ownership. If, however, a work of
joint authorship consists of parts that can be used separately and the author of each part can be identified, the
author of each part shall be the original owner of the copyright in the part that he has created;
178.3. In the case of work created by an author during and in the course of his employment, the copyright shall
belong to:
(a) The employee, if the creation of the object of copyright is not a part of his regular duties even if the
employee uses the time, facilities and materials of the employer.
(b) The employer, if the work is the result of the performance of his regularly-assigned duties, unless
there is an agreement, express or implied, to the contrary.
178.4. In the case of a work commissioned by a person other than an employer of the author and who pays for it
and the work is made in pursuance of the commission, the person who so commissioned the work shall have
ownership of the work, but the copyright thereto shall remain with the creator, unless there is a written
stipulation to the contrary;
178.5. In the case of audiovisual work, the copyright shall belong to the producer, the author of the scenario, the
composer of the music, the film director, and the author of the work so adapted. However, subject to contrary or
other stipulations among the creators, the producer shall exercise the copyright to an extent required for the
exhibition of the work in any manner, except for the right to collect performing license fees for the performance
of musical compositions, with or without words, which are incorporated into the work; and
178.6. In respect of letters, the copyright shall belong to the writer subject to the provisions of Article 723 of the
Civil Code. (Sec. 6, P.D. No. 49a)
Section 179. Anonymous and Pseudonymous Works. - For purposes of this Act, the publishers shall be deemed
to represent the authors of articles and other writings published without the names of the authors or under
pseudonyms, unless the contrary appears, or the pseudonyms or adopted name leaves no doubt as to the author's
identity, or if the author of the anonymous works discloses his identity. (Sec. 7, P.D. 49)
CHAPTER VII
TRANSFER OR ASSIGNMENT OF COPYRIGHT
Section 180. Rights of Assignee. - 180.1. The copyright may be assigned in whole or in part. Within the scope of
the assignment, the assignee is entitled to all the rights and remedies which the assignor had with respect to the
copyright.
180.2. The copyright is not deemed assigned inter vivos in whole or in part unless there is a written indication of
such intention.
180.3. The submission of a literary, photographic or artistic work to a newspaper, magazine or periodical for
publication shall constitute only a license to make a single publication unless a greater right is expressly granted.
If two (2) or more persons jointly own a copyright or any part thereof, neither of the owners shall be entitled to
grant licenses without the prior written consent of the other owner or owners. (Sec. 15, P.D. No. 49a)
Section 181. Copyright and Material Object. - The copyright is distinct from the property in the material object
subject to it. Consequently, the transfer or assignment of the copyright shall not itself constitute a transfer of the
material object. Nor shall a transfer or assignment of the sole copy or of one or several copies of the work imply
transfer or assignment of the copyright. (Sec. 16, P.D. No. 49)

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Section 182. Filing of Assignment or License. - An assignment or exclusive license may be filed in duplicate
with the National Library upon payment of the prescribed fee for registration in books and records kept for the
purpose. Upon recording, a copy of the instrument shall be returned to the sender with a notation of the fact of
record. Notice of the record shall be published in the IPO Gazette. (Sec. 19, P.D. No. 49a)
Section 183. Designation of Society. - The copyright owners or their heirs may designate a society of artists,
writers or composers to enforce their economic rights and moral rights on their behalf. (Sec. 32, P.D. No. 49a)
CHAPTER VIII
LIMITATIONS ON COPYRIGHT
Section 184. Limitations on Copyright. - 184.1. Notwithstanding the provisions of Chapter V, the following acts
shall not constitute infringement of copyright:
(a) The recitation or performance of a work, once it has been lawfully made accessible to the public, if
done privately and free of charge or if made strictly for a charitable or religious institution or society;
(Sec. 10(1), P.D. No. 49)
(b) The making of quotations from a published work if they are compatible with fair use and only to the
extent justified for the purpose, including quotations from newspaper articles and periodicals in the
form of press summaries: Provided, That the source and the name of the author, if appearing on the
work, are mentioned; (Sec. 11, third par., P.D. No. 49)
(c) The reproduction or communication to the public by mass media of articles on current political,
social, economic, scientific or religious topic, lectures, addresses and other works of the same nature,
which are delivered in public if such use is for information purposes and has not been expressly
reserved: Provided, That the source is clearly indicated; (Sec. 11, P.D. No. 49)
(d) The reproduction and communication to the public of literary, scientific or artistic works as part of
reports of current events by means of photography, cinematography or broadcasting to the extent
necessary for the purpose; (Sec. 12, P.D. No. 49)
(e) The inclusion of a work in a publication, broadcast, or other communication to the public, sound
recording or film, if such inclusion is made by way of illustration for teaching purposes and is
compatible with fair use: Provided, That the source and of the name of the author, if appearing in the
work, are mentioned;
(f) The recording made in schools, universities, or educational institutions of a work included in a
broadcast for the use of such schools, universities or educational institutions: Provided, That such
recording must be deleted within a reasonable period after they were first broadcast: Provided, further,
That such recording may not be made from audiovisual works which are part of the general cinema
repertoire of feature films except for brief excerpts of the work;
(g) The making of ephemeral recordings by a broadcasting organization by means of its own facilities
and for use in its own broadcast;
(h) The use made of a work by or under the direction or control of the Government, by the National
Library or by educational, scientific or professional institutions where such use is in the public interest
and is compatible with fair use;
(i) The public performance or the communication to the public of a work, in a place where no
admission fee is charged in respect of such public performance or communication, by a club or
institution for charitable or educational purpose only, whose aim is not profit making, subject to such
other limitations as may be provided in the Regulations; (n)
(j) Public display of the original or a copy of the work not made by means of a film, slide, television
image or otherwise on screen or by means of any other device or process: Provided, That either the

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work has been published, or, that the original or the copy displayed has been sold, given away or
otherwise transferred to another person by the author or his successor in title; and
(k) Any use made of a work for the purpose of any judicial proceedings or for the giving of
professional advice by a legal practitioner.
184.2. The provisions of this section shall be interpreted in such a way as to allow the work to be used in a
manner which does not conflict with the normal exploitation of the work and does not unreasonably prejudice
the right holder's legitimate interests.
Section 185. Fair Use of a Copyrighted Work. - 185.1. The fair use of a copyrighted work for criticism,
comment, news reporting, teaching including multiple copies for classroom use, scholarship, research, and
similar purposes is not an infringement of copyright. Decompilation, which is understood here to be the
reproduction of the code and translation of the forms of the computer program to achieve the inter-operability of
an independently created computer program with other programs may also constitute fair use. In determining
whether the use made of a work in any particular case is fair use, the factors to be considered shall include:
(a) The purpose and character of the use, including whether such use is of a commercial nature or is for
non-profit educational purposes;
(b) The nature of the copyrighted work;
(c) The amount and substantiality of the portion used in relation to the copyrighted work as a whole;
and
(d) The effect of the use upon the potential market for or value of the copyrighted work.
185.2. The fact that a work is unpublished shall not by itself bar a finding of fair use if such finding is made
upon consideration of all the above factors.
Section 186. Work of Architecture. - Copyright in a work of architecture shall include the right to control the
erection of any building which reproduces the whole or a substantial part of the work either in its original form
or in any form recognizably derived from the original: Provided, That the copyright in any such work shall not
include the right to control the reconstruction or rehabilitation in the same style as the original of a building to
which that copyright relates. (n)
Section 187. Reproduction of Published Work. - 187.1. Notwithstanding the provision of Section 177, and
subject to the provisions of Subsection 187.2, the private reproduction of a published work in a single copy,
where the reproduction is made by a natural person exclusively for research and private study, shall be
permitted, without the authorization of the owner of copyright in the work.
187.2. The permission granted under Subsection 187.1 shall not extend to the reproduction of:
(a) A work of architecture in the form of building or other construction;
(b) An entire book, or a substantial part thereof, or of a musical work in graphic form by reprographic
means;
(c) A compilation of data and other materials;
(d) A computer program except as provided in Section 189; and
(e) Any work in cases where reproduction would unreasonably conflict with a normal exploitation of
the work or would otherwise unreasonably prejudice the legitimate interests of the author. (n)

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Section 188. Reprographic Reproduction by Libraries. - 188.1. Notwithstanding the provisions of Subsection
177.6, any library or archive whose activities are not for profit may, without the authorization of the author of
copyright owner, make a single copy of the work by reprographic reproduction:
(a) Where the work by reason of its fragile character or rarity cannot be lent to user in its original form;
(b) Where the works are isolated articles contained in composite works or brief portions of other
published works and the reproduction is necessary to supply them, when this is considered expedient,
to persons requesting their loan for purposes of research or study instead of lending the volumes or
booklets which contain them; and
(c) Where the making of such a copy is in order to preserve and, if necessary in the event that it is lost,
destroyed or rendered unusable, replace a copy, or to replace, in the permanent collection of another
similar library or archive, a copy which has been lost, destroyed or rendered unusable and copies are
not available with the publisher.
188.2. Notwithstanding the above provisions, it shall not be permissible to produce a volume of a work
published in several volumes or to produce missing tomes or pages of magazines or similar works, unless the
volume, tome or part is out of stock: Provided, That every library which, by law, is entitled to receive copies of a
printed work, shall be entitled, when special reasons so require, to reproduce a copy of a published work which
is considered necessary for the collection of the library but which is out of stock. (Sec. 13, P.D. 49a)
Section 189. Reproduction of Computer Program. - 189.1. Notwithstanding the provisions of Section 177, the
reproduction in one (1) back-up copy or adaptation of a computer program shall be permitted, without the
authorization of the author of, or other owner of copyright in, a computer program, by the lawful owner of that
computer program: Provided, That the copy or adaptation is necessary for:
(a) The use of the computer program in conjunction with a computer for the purpose, and to the extent,
for which the computer program has been obtained; and
(b) Archival purposes, and, for the replacement of the lawfully owned copy of the computer program in
the event that the lawfully obtained copy of the computer program is lost, destroyed or rendered
unusable.
189.2. No copy or adaptation mentioned in this Section shall be used for any purpose other than the ones
determined in this Section, and any such copy or adaptation shall be destroyed in the event that continued
possession of the copy of the computer program ceases to be lawful.
189.3. This provision shall be without prejudice to the application of Section 185 whenever appropriate. (n)
Section 190. Importation for Personal Purposes. - 190.1. Notwithstanding the provision of Subsection 177.6,
but subject to the limitation under the Subsection 185.2, the importation of a copy of a work by an individual for
his personal purposes shall be permitted without the authorization of the author of, or other owner of copyright
in, the work under the following circumstances:
(a) When copies of the work are not available in the Philippines and:
(i) Not more than one (1) copy at one time is imported for strictly individual use only; or
(ii) The importation is by authority of and for the use of the Philippine Government; or
(iii) The importation, consisting of not more than three (3) such copies or likenesses in any
one invoice, is not for sale but for the use only of any religious, charitable, or educational
society or institution duly incorporated or registered, or is for the encouragement of the fine
arts, or for any state school, college, university, or free public library in the Philippines.

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(b) When such copies form parts of libraries and personal baggage belonging to persons or families
arriving from foreign countries and are not intended for sale: Provided, That such copies do not exceed
three (3).
190.2. Copies imported as allowed by this Section may not lawfully be used in any way to violate the rights of
owner the copyright or annul or limit the protection secured by this Act, and such unlawful use shall be deemed
an infringement and shall be punishable as such without prejudice to the proprietor's right of action.
190.3. Subject to the approval of the Secretary of Finance, the Commissioner of Customs is hereby empowered
to make rules and regulations for preventing the importation of articles the importation of which is prohibited
under this Section and under treaties and conventions to which the Philippines may be a party and for seizing
and condemning and disposing of the same in case they are discovered after they have been imported. (Sec. 30,
P.D. No. 49)
CHAPTER IX
DEPOSIT AND NOTICE
Section 191. Registration and Deposit with National Library and the Supreme Court Library. - After the first
public dissemination of performance by authority of the copyright owner of a work falling under Subsections
172.1, 172.2 and 172.3 of this Act, 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. A certificate of deposit shall be issued for which the prescribed fee shall be collected
and the copyright owner shall be exempt from making additional deposit of the works with the National Library
and the Supreme Court Library under other laws. If, within three (3) weeks after receipt by the copyright owner
of a written demand from the directors for such deposit, the required copies or reproductions are not delivered
and the fee is not paid, the copyright owner shall be liable to pay a fine equivalent to the required fee per month
of delay and to pay to the National Library and the Supreme Court Library the amount of the retail price of the
best edition of the work. Only the above mentioned classes of work shall be accepted for deposit by the National
Library and the Supreme Court Library. (Sec. 26, P.D. No. 49a)
Section 192. Notice of Copyright. - Each copy of a work published or offered for sale may contain a notice
bearing the name of the copyright owner, and the year of its first publication, and, in copies produced after the
creator's death, the year of such death. (Sec. 27, P.D. No. 49a)
CHAPTER X
MORAL RIGHTS
Section 193. Scope of Moral Rights. - The author of a work shall, independently of the economic rights in
Section 177 or the grant of an assignment or license with respect to such right, have the right:
193.1. To require that the authorship of the works be attributed to him, in particular, the right that his name, as
far as practicable, be indicated in a prominent way on the copies, and in connection with the public use of his
work;
193.2. To make any alterations of his work prior to, or to withhold it from publication;
193.3. To object to any distortion, mutilation or other modification of, or other derogatory action in relation to,
his work which would be prejudicial to his honor or reputation; and
193.4. To restrain the use of his name with respect to any work not of his own creation or in a distorted version
of his work. (Sec. 34, P.D. No. 49)
Section 194. Breach of Contract. - An author cannot be compelled to perform his contract to create a work or
for the publication of his work already in existence. However, he may be held liable for damages for breach of
such contract. (Sec. 35, P.D. No. 49)

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Section 195. Waiver of Moral Rights. - An author may waive his rights mentioned in Section 193 by a written
instrument, but no such waiver shall be valid where its effects is to permit another:
195.1. To use the name of the author, or the title of his work, or otherwise to make use of his reputation with
respect to any version or adaptation of his work which, because of alterations therein, would substantially tend
to injure the literary or artistic reputation of another author; or
195.2. To use the name of the author with respect to a work he did not create. (Sec. 36, P.D. No. 49)
Section 196. Contribution to Collective Work. - When an author contributes to a collective work, his right to
have his contribution attributed to him is deemed waived unless he expressly reserves it. (Sec. 37, P.D. No. 49)
Section 197. Editing, Arranging and Adaptation of Work. - In the absence of a contrary stipulation at the time an
author licenses or permits another to use his work, the necessary editing, arranging or adaptation of such work,
for publication, broadcast, use in a motion picture, dramatization, or mechanical or electrical reproduction in
accordance with the reasonable and customary standards or requirements of the medium in which the work is to
be used, shall not be deemed to contravene the author's rights secured by this chapter. Nor shall complete
destruction of a work unconditionally transferred by the author be deemed to violate such rights. (Sec. 38, P.D.
No. 49)
Section 198. Term of Moral Rights. - 198.1. The rights of an author under this chapter shall last during the
lifetime of the author and for fifty (50) years after his death and shall not be assignable or subject to license. The
person or persons to be charged with the posthumous enforcement of these rights shall be named in writing to be
filed with the National Library. In default of such person or persons, such enforcement shall devolve upon either
the author's heirs, and in default of the heirs, the Director of the National Library.
198.2. For purposes of this Section, "Person" shall mean any individual, partnership, corporation, association, or
society. The Director of the National Library may prescribe reasonable fees to be charged for his services in the
application of provisions of this Section. (Sec. 39, P.D. No. 49)
Section 199. Enforcement Remedies. - Violation of any of the rights conferred by this Chapter shall entitle those
charged with their enforcement to the same rights and remedies available to a copyright owner. In addition,
damages which may be availed of under the Civil Code may also be recovered. Any damage recovered after the
creator's death shall be held in trust for and remitted to his heirs, and in default of the heirs, shall belong to the
government. (Sec. 40, P D No. 49)
CHAPTER XI
RIGHTS TO PROCEEDS IN SUBSEQUENT TRANSFERS
Section 200. Sale or Lease of Work. - In every sale or lease of an original work of painting or sculpture or of the
original manuscript of a writer or composer, subsequent to the first disposition thereof by the author, the author
or his heirs shall have an inalienable right to participate in the gross proceeds of the sale or lease to the extent of
five percent (5%). This right shall exist during the lifetime of the author and for fifty (50) years after his death.
(Sec. 31, P.D. No. 49)
Section 201. Works Not Covered. - The provisions of this Chapter shall not apply to prints, etchings, engravings,
works of applied art, or works of similar kind wherein the author primarily derives gain from the proceeds of
reproductions. (Sec. 33, P.D. No. 49)
CHAPTER XII
RIGHTS OF PERFORMERS, PRODUCERS OF SOUNDS RECORDINGS AND BROADCASTING
ORGANIZATIONS
Section 202. Definitions. - For the purpose of this Act, the following terms shall have the following meanings:
202.1. "Performers" are actors, singers, musicians, dancers, and other persons who act, sing, declaim, play in,
interpret, or otherwise perform literary and artistic work;

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202.2. "Sound recording" means the fixation of the sounds of a performance or of other sounds, or
representation of sound, other than in the form of a fixation incorporated in a cinematographic or other
audiovisual work;
202.3. An "audiovisual work or fixation" is a work that consists of a series of related images which impart the
impression of motion, with or without accompanying sounds, susceptible of being made visible and, where
accompanied by sounds, susceptible of being made audible;
202.4. "Fixation" means the embodiment of sounds, or of the representations thereof, from which they can be
perceived, reproduced or communicated through a device;
202. 5. "Producer of a sound recording" means the person, or the legal entity, who or which takes the initiative
and has the responsibility for the first fixation of the sounds of a performance or other sounds, or the
representation of sounds;
202.6. "Publication of a fixed performance or a sound recording" means the offering of copies of the fixed
performance or the sound recording to the public, with the consent of the right holder: Provided, That copies are
offered to the public in reasonable quality;
202.7. "Broadcasting" means the transmission by wireless means for the public reception of sounds or of images
or of representations thereof; such transmission by satellite is also "broadcasting" where the means for
decrypting are provided to the public by the broadcasting organization or with its consent;
202.8. "Broadcasting organization" shall include a natural person or a juridical entity duly authorized to engage
in broadcasting; and
202.9 "Communication to the public of a performance or a sound recording" means the transmission to the
public, by any medium, otherwise than by broadcasting, of sounds of a performance or the representations of
sounds fixed in a sound recording. For purposes of Section 209, "communication to the public" includes making
the sounds or representations of sounds fixed in a sound recording audible to the public.
Section 203. Scope of Performers' Rights. - Subject to the provisions of Section 212, performers shall enjoy the
following exclusive rights:
203.1. As regards their performances, the right of authorizing:
(a) The broadcasting and other communication to the public of their performance; and
(b) The fixation of their unfixed performance.
203.2. The right of authorizing the direct or indirect reproduction of their performances fixed in sound
recordings, in any manner or form;
203.3. Subject to the provisions of Section 206, the right of authorizing the first public distribution of the
original and copies of their performance fixed in the sound recording through sale or rental or other forms of
transfer of ownership;
203.4. The right of authorizing the commercial rental to the public of the original and copies of their
performances fixed in sound recordings, even after distribution of them by, or pursuant to the authorization by
the performer; and
203.5. The right of authorizing the making available to the public of their performances fixed in sound
recordings, by wire or wireless means, in such a way that members of the public may access them from a place
and time individually chosen by them. (Sec. 42, P.D. No. 49a)
Section 204. Moral Rights of Performers. - 204.1. Independently of a performer's economic rights, the
performer, shall, as regards his live aural performances or performances fixed in sound recordings, have the

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right to claim to be identified as the performer of his performances, except where the omission is dictated by the
manner of the use of the performance, and to object to any distortion, mutilation or other modification of his
performances that would be prejudicial to his reputation.
204.2. The rights granted to a performer in accordance with Subsection 203.1 shall be maintained and exercised
fifty (50) years after his death, by his heirs, and in default of heirs, the government, where protection is claimed.
(Sec. 43, P.D. No. 49)
Section 205. Limitation on Right. - 205.1. Subject to the provisions of Section 206, once the performer has
authorized the broadcasting or fixation of his performance, the provisions of Sections 203 shall have no further
application.
205.2. The provisions of Section 184 and Section 185 shall apply mutatis mutandis to performers. (n)
Section 206. Additional Remuneration for Subsequent Communications or Broadcasts. - Unless otherwise
provided in the contract, in every communication to the public or broadcast of a performance subsequent to the
first communication or broadcast thereof by the broadcasting organization, the performer shall be entitled to an
additional remuneration equivalent to at least five percent (5%) of the original compensation he or she received
for the first communication or broadcast. (n)
Section 207. Contract Terms. - Nothing in this Chapter shall be construed to deprive performers of the right to
agree by contracts on terms and conditions more favorable for them in respect of any use of their performance.
(n)
CHAPTER XIII
PRODUCERS OF SOUND RECORDINGS
Section 208. Scope of Right. - Subject to the provisions of Section 212, producers of sound recordings shall
enjoy the following exclusive rights:
208.1. The right to authorize the direct or indirect reproduction of their sound recordings, in any manner or
form; the placing of these reproductions in the market and the right of rental or lending;
208.2. The right to authorize the first public distribution of the original and copies of their sound recordings
through sale or rental or other forms of transferring ownership; and
208.3. The right to authorize the commercial rental to the public of the original and copies of their sound
recordings, even after distribution by them by or pursuant to authorization by the producer. (Sec. 46, P.D. No.
49a)
Section 209. Communication to the Public. - If a sound recording published for commercial purposes, or a
reproduction of such sound recording, is used directly for broadcasting or for other communication to the public,
or is publicly performed with the intention of making and enhancing profit, a single equitable remuneration for
the performer or performers, and the producer of the sound recording shall be paid by the user to both the
performers and the producer, who, in the absence of any agreement shall share equally. (Sec. 47, P.D. No. 49a)
Section 210. Limitation of Right. - Sections 184 and 185 shall apply mutatis mutandis to the producer of sound
recordings. (Sec. 48, P.D. No. 49a)
CHAPTER XIV
BROADCASTING ORGANIZATIONS
Section 211. Scope of Right. - Subject to the provisions of Section 212, broadcasting organizations shall enjoy
the exclusive right to carry out, authorize or prevent any of the following acts:
211.1. The rebroadcasting of their broadcasts;

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211.2. The recording in any manner, including the making of films or the use of video tape, of their broadcasts
for the purpose of communication to the public of television broadcasts of the same; and
211.3. The use of such records for fresh transmissions or for fresh recording. (Sec. 52, P.D. No. 49)
CHAPTER XV
LIMITATIONS ON PROTECTION
Section 212. Limitations on Rights. - Sections 203, 208 and 209 shall not apply where the acts referred to in
those Sections are related to:
212.1. The use by a natural person exclusively for his own personal purposes;
212.2. Using short excerpts for reporting current events;
212.3. Use solely for the purpose of teaching or for scientific research; and
212.4. Fair use of the broadcast subject to the conditions under Section 185. (Sec. 44, P.D. No. 49a)
CHAPTER XVI
TERM OF PROTECTION
Section 213. Term of Protection. - 213.1. Subject to the provisions of Subsections 213.2 to 213.5, the copyright
in works under Sections 172 and 173 shall be protected during the life of the author and for fifty (50) years after
his death. This rule also applies to posthumous works. (Sec. 21, first sentence, P.D. No. 49a)
213.2. In case of works of joint authorship, the economic rights shall be protected during the life of the last
surviving author and for fifty (50) years after his death. (Sec. 21, second sentence, P.D. No. 49)
213.3. In case of anonymous or pseudonymous works, the copyright shall be protected for fifty (50) years from
the date on which the work was first lawfully published: Provided, That where, before the expiration of the said
period, the author's identity is revealed or is no longer in doubt, the provisions of Subsections 213.1. and 213.2
shall apply, as the case may be: Provided, further, That such works if not published before shall be protected for
fifty (50) years counted from the making of the work. (Sec. 23, P.D. No. 49)
213.4. In case of works of applied art the protection shall be for a period of twenty-five (25) years from the date
of making. (Sec. 24(B), P.D. No. 49a)
213.5. In case of photographic works, the protection shall be for fifty (50) years from publication of the work
and, if unpublished, fifty (50) years from the making. (Sec. 24(C), P.D. 49a)
213.6. In case of audio-visual works including those produced by process analogous to photography or any
process for making audio-visual recordings, the term shall be fifty (50) years from date of publication and, if
unpublished, from the date of making. (Sec. 24(C), P.D. No. 49a)
Section 214. Calculation of Term. - The term of protection subsequent to the death of the author provided in the
preceding Section shall run from the date of his death or of publication, but such terms shall always be deemed
to begin on the first day of January of the year following the event which gave rise to them. (Sec. 25, P.D. No.
49)
Section 215. Term of Protection for Performers, Producers and Broadcasting Organizations. - 215.1. The rights
granted to performers and producers of sound recordings under this law shall expire:
(a) For performances not incorporated in recordings, fifty (50) years from the end of the year in which
the performance took place; and

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(b) For sound or image and sound recordings and for performances incorporated therein, fifty (50)
years from the end of the year in which the recording took place.
215.2. In case of broadcasts, the term shall be twenty (20) years from the date the broadcast took place. The
extended term shall be applied only to old works with subsisting protection under the prior law. (Sec. 55, P.D.
No. 49a)
CHAPTER XVII
INFRINGEMENT
Section 216. Remedies for Infringement. - 216.1. Any person infringing a right protected under this law shall be
liable:
(a) To an injunction restraining such infringement. The court may also order the defendant to desist
from an infringement, among others, to prevent the entry into the channels of commerce of imported
goods that involve an infringement, immediately after customs clearance of such goods.
(b) Pay to the copyright proprietor or his assigns or heirs such actual damages, including legal costs
and other expenses, as he may have incurred due to the infringement as well as the profits the infringer
may have made due to such infringement, and in proving profits the plaintiff shall be required to prove
sales only and the defendant shall be required to prove every element of cost which he claims, or, in
lieu of actual damages and profits, such damages which to the court shall appear to be just and shall not
be regarded as penalty.
(c) Deliver under oath, for impounding during the pendency of the action, upon such terms and
conditions as the court may prescribe, sales invoices and other documents evidencing sales, all articles
and their packaging alleged to infringe a copyright and implements for making them.
(d) Deliver under oath for destruction without any compensation all infringing copies or devices, as
well as all plates, molds, or other means for making such infringing copies as the court may order.
(e) Such other terms and conditions, including the payment of moral and exemplary damages, which
the court may deem proper, wise and equitable and the destruction of infringing copies of the work
even in the event of acquittal in a criminal case.
216.2. In an infringement action, the court shall also have the power to order the seizure and impounding of any
article which may serve as evidence in the court proceedings. (Sec. 28, P.D. No. 49a)
Section 217. Criminal Penalties. - 217.1. Any person infringing any right secured by provisions of Part IV of
this Act or aiding or abetting such infringement shall be guilty of a crime punishable by:
(a) Imprisonment of one (1) year to three (3) years plus a fine ranging from Fifty thousand pesos
(P50,000) to One hundred fifty thousand pesos (P150,000) for the first offense.
(b) Imprisonment of three (3) years and one (1) day to six (6) years plus a fine ranging from One
hundred fifty thousand pesos (P150,000) to Five hundred thousand pesos (P500,000) for the second
offense.
(c) Imprisonment of six (6) years and one (1) day to nine (9) years plus a fine ranging from five
hundred thousand pesos (P500,000) to One million five hundred thousand pesos (P1,500,000) for the
third and subsequent offenses.
(d) In all cases, subsidiary imprisonment in cases of insolvency.
217.2. In determining the number of years of imprisonment and the amount of fine, the court shall consider the
value of the infringing materials that the defendant has produced or manufactured and the damage that the
copyright owner has suffered by reason of the infringement.

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217.3. Any person who at the time when copyright subsists in a work has in his possession an article which he
knows, or ought to know, to be an infringing copy of the work for the purpose of:
(a) Selling, letting for hire, or by way of trade offering or exposing for sale, or hire, the article;
(b) Distributing the article for purpose of trade, or for any other purpose to an extent that will prejudice
the rights of the copyright owner in the work; or
(c) Trade exhibit of the article in public, shall be guilty of an offense and shall be liable on conviction
to imprisonment and fine as above mentioned. (Sec. 29, P.D. No. 49a)
Section 218. Affidavit Evidence. - 218.1. In an action under this Chapter, an affidavit made before a notary
public by or on behalf of the owner of the copyright in any work or other subject matter and stating that:
(a) At the time specified therein, copyright subsisted in the work or other subject matter;
(b) He or the person named therein is the owner of the copyright; and
(c) The copy of the work or other subject matter annexed thereto is a true copy thereof, shall be
admitted in evidence in any proceedings for an offense under this Chapter and shall be prima facie
proof of the matters therein stated until the contrary is proved, and the court before which such affidavit
is produced shall assume that the affidavit was made by or on behalf of the owner of the copyright.
218.2. In an action under this Chapter:
(a) Copyright shall be presumed to subsist in the work or other subject matter to which the action
relates if the defendant does not put in issue the question whether copyright subsists in the work or
other subject matter; and
(b) Where the subsistence of the copyright is established, the plaintiff shall be presumed to be the
owner of the copyright if he claims to be the owner of the copyright and the defendant does not put in
issue the question of his ownership.
(c) Where the defendant, without good faith, puts in issue the questions of whether copyright subsists
in a work or other subject matter to which the action relates, or the ownership of copyright in such
work or subject matter, thereby occasioning unnecessary costs or delay in the proceedings, the court
may direct that any costs to the defendant in respect of the action shall not be allowed by him and that
any costs occasioned by the defendant to other parties shall be paid by him to such other parties. (n)
Section 219. Presumption of Authorship. - 219.1. The natural person whose name is indicated on a work in the
usual manner as the author shall, in the absence of proof to the contrary, be presumed to be the author of the
work. This provision shall be applicable even if the name is a pseudonym, where the pseudonym leaves no
doubt as to the identity of the author.
219.2. The person or body corporate whose name appears on a audio-visual work in the usual manner shall, in
the absence of proof to the contrary, be presumed to be the maker of said work. (n)
Section 220. International Registration of Works. - A statement concerning a work, recorded in an international
register in accordance with an international treaty to which the Philippines is or may become a party, shall be
construed as true until the contrary is proved except:
220.1. Where the statement cannot be valid under this Act or any other law concerning intellectual property.
220.2. Where the statement is contradicted by another statement recorded in the international register. (n)

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CHAPTER XVIII
SCOPE OF APPLICATION
Section 221. Points of Attachment for Works under Sections 172 and 173. - 221.1. The protection afforded by
this Act to copyrightable works under Sections 172 and 173 shall apply to:
(a) Works of authors who are nationals of, or have their habitual residence in, the Philippines;
(b) Audio-visual works the producer of which has his headquarters or habitual residence in the
Philippines;
(c) Works of architecture erected in the Philippines or other artistic works incorporated in a building or
other structure located in the Philippines;
(d) Works first published in the Philippines; and
(e) Works first published in another country but also published in the Philippines within thirty days,
irrespective of the nationality or residence of the authors.
221.2. The provisions of this Act shall also apply to works that are to be protected by virtue of and in accordance
with any international convention or other international agreement to which the Philippines is a party. (n)
Section 222. Points of Attachment for Performers. - The provisions of this Act on the protection of performers
shall apply to:
222.1. Performers who are nationals of the Philippines;
222.2. Performers who are not nationals of the Philippines but whose performances:
(a) Take place in the Philippines; or
(b) Are incorporated in sound recordings that are protected under this Act; or
(c) Which has not been fixed in sound recording but are carried by broadcast qualifying for protection
under this Act. (n)
Section 223. Points of Attachment for Sound Recordings. - The provisions of this Act on the protection of sound
recordings shall apply to:
223.1. Sound recordings the producers of which are nationals of the Philippines; and
223.2. Sound recordings that were first published in the Philippines. (n)
Section 224. Points of Attachment for Broadcasts. - 224.1. The provisions of this Act on the protection of
broadcasts shall apply to:
(a) Broadcasts of broadcasting organizations the headquarters of which are situated in the Philippines;
and
(b) Broadcasts transmitted from transmitters situated in the Philippines.
224.2. The provisions of this Act shall also apply to performers who, and to producers of sound recordings and
broadcasting organizations which, are to be protected by virtue of and in accordance with any international
convention or other international agreement to which the Philippines is a party. (n)

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CHAPTER XIX
INSTITUTION OF ACTIONS
Section 225. Jurisdiction. - Without prejudice to the provisions of Subsection 7.1(c), actions under this Act shall
be cognizable by the courts with appropriate jurisdiction under existing law. (Sec. 57, P.D. No. 49a)
Section 226. Damages. - No damages may be recovered under this Act after four (4) years from the time the
cause of action arose. (Sec. 58, P.D. No. 49)
CHAPTER XX
MISCELLANEOUS PROVISIONS
Section 227. Ownership of Deposit and Instruments. - All copies deposited and instruments in writing filed with
the National Library and the Supreme Court Library in accordance with the provisions of this Act shall become
the property of the Government. (Sec. 60, P.D. No. 49)
Section 228. Public Records. - The section or division of the National Library and the Supreme Court Library
charged with receiving copies and instruments deposited and with keeping records required under this Act and
everything in it shall be opened to public inspection. The Director of the National Library is empowered to issue
such safeguards and regulations as may be necessary to implement this Section and other provisions of this Act.
(Sec. 61, P.D. No. 49)
Section 229. Copyright Division; Fees. - The Copyright Section of the National Library shall be classified as a
Division upon the effectivity of this Act. The National Library shall have the power to collect, for the discharge
of its services under this Act, such fees as may be promulgated by it from time to time subject to the approval of
the Department Head. (Sec. 62, P.D. 49a)
PART V
FINAL PROVISIONS
Section 230. Equitable Principles to Govern Proceedings. - In all inter partes proceedings in the Office under
this Act, the equitable principles of laches, estoppel, and acquiescence where applicable, may be considered and
applied. (Sec. 9-A, R.A. No. 165)
Section 231. Reverse Reciprocity of Foreign Laws. - Any condition, restriction, limitation, diminution,
requirement, penalty or any similar burden imposed by the law of a foreign country on a Philippine national
seeking protection of intellectual property rights in that country, shall reciprocally be enforceable upon nationals
of said country, within Philippine jurisdiction. (n)
Section 232. Appeals. - 232.1. Appeals from decisions of regular courts shall be governed by the Rules of Court.
Unless restrained by a higher court, the judgment of the trial court shall be executory even pending appeal under
such terms and conditions as the court may prescribe.
232.2. Unless expressly provided in this Act or other statutes, appeals from decisions of administrative officials
shall be provided in the Regulations. (n)
Section 233. Organization of the Office; Exemption from the Salary Standardization Law and the Attrition Law.
- 233.1. The Office shall be organized within one (1) year after the approval of this Act. It shall not be subject to
the provisions of Republic Act No. 7430.
233.2. The Office shall institute its own compensation structure: Provided, That the Office shall make its own
system conform as closely as possible with the principles provided for under Republic Act No. 6758. (n)
Section 234. Abolition of the Bureau of Patents, Trademarks, and Technology Transfer. - The Bureau of Patents,
Trademarks, and Technology Transfer under the Department of Trade and Industry is hereby abolished. All
unexpended funds and fees, fines, royalties and other charges collected for the calendar year, properties,
equipment and records of the Bureau of Patents, Trademarks and Technology Transfer, and such personnel as

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may be necessary are hereby transferred to the Office. Personnel not absorbed or transferred to the Office shall
enjoy the retirement benefits granted under existing law, otherwise, they shall be paid the equivalent of one
month basic salary for every year of service, or the equivalent nearest fractions thereof favorable to them on the
basis of the highest salary received.(n)
Section 235. Applications Pending on Effective Date of Act. - 235.1. All applications for patents pending in the
Bureau of Patents, Trademarks and Technology Transfer shall be proceeded with and patents thereon granted in
accordance with the Acts under which said applications were filed, and said Acts are hereby continued to be
enforced, to this extent and for this purpose only, notwithstanding the foregoing general repeal thereof:
Provided, That applications for utility models or industrial designs pending at the effective date of this Act, shall
be proceeded with in accordance with the provisions of this Act, unless the applicants elect to prosecute said
applications in accordance with the Acts under which they were filed.
235.2. All applications for registration of marks or trade names pending in the Bureau of Patents, Trademarks
and Technology Transfer at the effective date of this Act may be amended, if practicable to bring them under the
provisions of this Act. The prosecution of such applications so amended and the grant of registrations thereon
shall be proceeded with in accordance with the provisions of this Act. If such amendments are not made, the
prosecution of said applications shall be proceeded with and registrations thereon granted in accordance with the
Acts under which said applications were filed, and said Acts are hereby continued in force to this extent for this
purpose only, notwithstanding the foregoing general repeal thereof (n)
Section 236. Preservation of Existing Rights. - Nothing herein shall adversely affect the rights on the
enforcement of rights in patents, utility models, industrial designs, marks and works, acquired in good faith prior
to the effective date of this Act. (n)
Section 237. Notification on Berne Appendix. - The Philippines shall by proper compliance with the
requirements set forth under the Appendix of the Berne Convention (Paris Act, 1971) avail itself of the special
provisions regarding developing countries, including provisions for licenses grantable by competent authority
under the Appendix. (n)
Section 238. Appropriations. - The funds needed to carry out the provisions of this Act shall be charged to the
appropriations of the Bureau of Patents, Trademarks, and Technology Transfer under the current General
Appropriations Act and the fees, fines, royalties and other charges collected by the Bureau for the calendar year
pursuant to Sections 14.1 and 234 of this Act. Thereafter such sums as may be necessary for its continued
implementations shall be included in the annual General Appropriations Act. (n)
Section 239. Repeals. - 239.1. All Acts and parts of Acts inconsistent herewith, more particularly Republic Act
No. 165, as amended; Republic Act No. 166, as amended; and Articles 188 and 189 of the Revised Penal Code;
Presidential Decree No. 49, including Presidential Decree No. 285, as amended, are hereby repealed.
239.2. Marks registered under Republic Act No. 166 shall remain in force but shall be deemed to have been
granted under this Act and shall be due for renewal within the period provided for under this Act and, upon
renewal shall be reclassified in accordance with the International Classification. Trade names and marks
registered in the Supplemental Register under Republic Act No. 166 shall remain in force but shall no longer be
subject to renewal.
239.3. The provisions of this Act shall apply to works in which copyright protection obtained prior to the
effectivity of this Act is subsisting: Provided, That the application of this Act shall not result in the diminution of
such protection. (n)
Section 240. Separability. - If any provision of this Act or the application of such provision to any
circumstances is held invalid, the remainder of the Act shall not be affected thereby. (n)
Section 241. Effectivity. - This Act shall take effect on 1 January 1998. (n)
Approved: June 6, 1997

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