1

TABLEOFCONTENTS
MESSAGEFROMTHEDIRECTORGENERAL ABOUTIPOPHL Vision,MissionandGoals Organization EXECUTIVESUMMARY REGULATORYGOALS DEVELOPMENTALGOALS ORGANIZATIONALGOALS FINANCIALREPORT NEXTSTEPS TABLESOFSTATISTICALDATAONIP

3 6 10 11 16 19 42 58 62 71 76

MESSAGEFROMTHEDIRECTORGENERAL
IPOPHLwasmynewhomein2010.Asthenewoccupantatthehelmofthe organization,thethrustoftheactivitieslastyearwasfocusedonbuildingthegains of my predecessors and in laying the groundwork for the organizations transformationofthefuture.Inotherwords,weareworkingonasturdyfoundation withwhichtobuildaworldclassIntellectualPropertyOfficeofthePhilippines. First building block was our new vision and mission. We rolled this out in April 2010, aimed at making the Philippines an intellectual property conscious country in a demystified, developmentoriented, and democratized IP system. Together with this vision is the organizations mission of making IPOPHL a knowledgedriven government organization that works towards economic, technological, and sociocultural development by communicating, enabling, and ensuringtheeffectiveuseoftheIntellectualPropertySysteminalllevelsofsociety forthecreation,protection,utilization,andenforcementofintellectualproperty.To realize this vision and mission, eight (8) goals were formulated that focused on regulatory,developmental,andorganizationaldevelopment. Second building block is on the improvement of the Intellectual Property Office Technical Infrastructure aimed at modernizing IPOPHLs information technology system. IPOPHL signed a Cooperation Agreement with the World IntellectualProperty Organization (WIPO) in the implementation of the Intellectual Property Automation System (IPAS). This system, once operational, will provide simplified, transparent, and consistent registration procedures as well as empower applicantstotracktheprogressoftheirapplications.Insodoing,IPOPHLwillbeable todelivertimelyandqualityregistrationservices,forqualityisourprimaryfocus. Thirdbuildingblockiscreatinginnovationandinventingthefuture.Through theyears,statisticsatIPOPHLshowthatlocalpatentfilingsareameaslyfivepercent (5%)oftheannualpatentfilings.Thus,IPOPHLembarkedonapioneeringworkof establishing a network of Innovation and Technology Support Offices (ITSOs) or patent libraries. The aim here is to make use of patent documents as a source of technologicalinformation.Withoutinformationaboutthestateoftheart,thereisa highriskthataproductwillbedevelopedasecondtimearound.Andthisbecomes an obstacle for technical and economic development and definitely a hindrance to innovation.IPOPHLsupportsinventions,creativity,andinnovationtowardeconomic growth. Fourth and a very important building block is our holistic approach to effective enforcement. We worked with rights holders and brand owners, with enforcement agencies and other key partners in IP. We experienced a growing mutualconfidence,foundarenewedsenseofpurpose,achievedameetingofminds onourobjectives,andtogetherworkedtoforgeaneffectiveenforcementstrategy. Weputgreatvalueonthesuggestionsandinputsofourpartnersandstakeholders

toward improving our services and at the same time in advancing awareness, knowledge,anduseoftheIPsystem. Thisisjustthebeginning.Muchstillneedstobedone,butwearereadyto face challenges for our grounding rests on solid rock. We are working hard to answertheneedandinvestinginabrightfutureforthecountryseconomicgrowth andimprovedcompetitiveness. Atty.RicardoR.Blancaflor DirectorGeneral

THEINTELLECTUALPROPERTYOFFICEOFTHE PHILIPPINES(IPOPHL)
Republic Act No. 8293, otherwise known as the Intellectual Property Code of the Philippines(IPCode)whichwassignedintolawonJune6,1997andtookeffecton January 1, 1998, created the IP Philippines. Recognizing the importance of an effectiveintellectualpropertysystem,theIPCodeinitsDeclarationofStatePolicy, statedthefollowing: Section 2. Declaration of State Policy. The State recognizes that an effective intellectual and industrial property system is vital to the development of domestic andcreativeactivity,facilitatestransferoftechnology,attractsforeigninvestments, andensuresmarketaccessforourproducts.Itshallprotectandsecuretheexclusive rights of scientists, inventors, artists and other gifted citizens to their intellectual propertyandcreations,particularlywhenbeneficialtothepeople,forsuchperiods asprovidedinthisAct. Theuseofintellectualpropertybearsasocialfunction.Tothisend,theStateshall promotethediffusionofknowledgeandinformationforthepromotionofnational developmentandprogressandthecommongood.ItisalsothepolicyoftheStateto streamline administrative procedures of registering patents, trademarks, and copyright,toliberalizetheregistrationonthetransferoftechnology,andtoenhance theenforcementofintellectualpropertyrightsinthePhilippines. ToimplementtheaboveStatepolicies,theIPOPHL: Examines applications for grant of letters of patent for inventions and registerutilitymodelsandindustrialdesign. Examines applications for the registration of marks (including internet domainnamesasmarks),geographicalindications,andintegratedcircuits. Registers technology transfer arrangements, settles disputes involving technology transfer payments, and develops and implements strategies to promoteandfacilitatetechnologytransfer. Promotes the use of patent information as a tool for technology development. Publishesregularlythepatents,marks,utilitymodels,andindustrialdesigns issuedandapproved,andthetechnologytransferarrangementsregistered. Administrativelyadjudicatescasesaffectingintellectualpropertyrights: ComplaintsforviolationoflawsinvolvingIntellectualpropertyrights Oppositionto/cancellationofregistrationmarks Cancellationofpatents,compulsorylicensing Coordinates with other government agencies and the private sector to strengthentheprotectionandenforcementofintellectualpropertyrightsin thecountry.
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PATENT

It is an exclusive right granted for a product, process or an improvement of a product or process,whichisnew,inventiveanduseful.Thisexclusiverightgivestheinventortheright toexcludeothersfrommaking,using,orsellingtheproductofhisinventionduringthelifeof thepatent. A patent has a term of protection of twenty (20) years providing an inventor significant commercial gain. In return, the patent owner must share the full description of the invention. This information is made available to the public in the form of the Intellectual Property Official Gazette and can be utilized as basis for future research and will in turn promoteinnovationanddevelopment. Patentableinventionsofferatechnicalsolutiontoaprobleminanyfieldofhumanactivity. However,theories,mathematicalmethods,methodsoftreatmentandartisticcreationsare NonPatentableinventions.

TRADEMARK

A trademark is a tool used that differentiates goods and services from each other. It is a very important marketing tool that makes the public identify goods and services. A trademarkcanbeoneword,agroupofwords,sign,symbol,logo,oracombinationofanyof these.Generally,atrademarkreferstobothtrademarkandservicemark,althoughaservice markisusedtoidentifythosemarksusedforservicesonly. Trademarkisaveryeffectivetoolthatmakesthepublicrememberthequalityofgoodsand services. Once a trademark becomes known, the public will keep on patronizing the products and services. Utilized properly, a trademark can become the most valuable business asset of an enterprise. In addition to making goods and services distinctive, the ownerofamarkmayearnrevenuesfromtheuseofthemarkbylicensingitsusebyanother orthoughfranchisingagreements.

UTILITYMODEL

AUtilityModelisaprotectionoption,whichisdesignedtoprotectinnovationsthatarenot sufficiently inventive to meet the inventive threshold required for standard patents application.Itmaybeanyusefulmachine,implement,tools,product,composition,process, improvement, or part of the same, that is of practical utility, novelty, and industrial applicability. A utility model is entitled to seven (7) years of protection from the date of filing,withnopossibilityofrenewal. Utilitymodelregistration isintended toaccommodatelocalindustries,smallbusinessesor entitiesbyprovidinganindustrialpropertyrightthatisrelativelyinexpensive,quick,easyto obtainandsuitedtoinnovationshavingshortcommerciallife.Utilitymodelregistrationisa useful tool in supporting the first to market place advantage. It promotes progress of technology and encourages innovation among small and medium businesses and the local industry.

 Itisinexpensiveandeasytoobtain,howeveritcan'tbeenforceduntilafterexaminationhas beencarriedoutandtheregistrationiscertified.Autilitymodelisexaminedtodetermineif itmeetstherequirementsembodiedintheexistingUtilityModellawanditsImplementing Rules and Regulations (IRR). It need not undergo substantive examination before it is certified.

INDUSTRIALDESIGN

An industrial design is the ornamental or aesthetic aspect of an article. The design may consistofthreedimensionalfeatures,suchastheshapeorsurfaceofanarticle,oroftwo dimensional features, such as patterns, lines, or color. Industrial designs are applied to a widevarietyofproductsofindustryandhandicraft:fromtechnicalandmedicalinstruments towatches,jewelry,andotherluxuryitems;fromhousewaresandelectricalappliancesto vehicles;fromtextiledesignstoleisuregoods.Tobeprotectedundermostnationallaws,an industrialdesignmustbenonfunctional.Thismeansthatanindustrialdesignisprimarilyof an aesthetic nature and any technical features of the article to which it is applied are not protected. Whenanindustrialdesignisprotected,theownerthepersonorentitythathasregistered the design is assured an exclusive right against unauthorized copying or imitation of the designbythirdparties.Thishelpstoensureafairreturnoninvestment.Aneffectivesystem ofprotectionalsobenefitsconsumersandthepublicatlarge,bypromotingfaircompetition and honest trade practices, encouraging creativity, and promoting more aesthetically attractiveproducts. Protectingindustrialdesignshelpseconomicdevelopment,byencouragingcreativityinthe industrial and manufacturing sectors, as well as in traditional arts and crafts. They contribute to the expansion of commercial activities and the export of national products. Industrialdesignscanberelativelysimpleandinexpensivetodevelopandprotect.Theyare reasonablyaccessibletosmallandmediumsizedenterprisesaswellastoindividualartists andcraftsmen,inbothindustrializedanddevelopingcountries.

COPYRIGHT

Copyrightisthelegalprotectionextendedtotheowneroftherightsinanoriginalwork. Original work refers to every production in the literary, scientific, and artistic domain. AmongtheliteraryandartisticworksenumeratedintheIPCodeincludesbooksandother writings,musicalworks,films,paintingsandotherworks,andcomputerprograms.Works are protected by the sole fact of their creation, irrespective of their mode or form of expression,aswellastheircontent,qualityandpurpose.Thus,itdoesnotmatterif,inthe eyes of some critics, a certain work has little artistic value. So long as it has been independently created and has a minimum of creativity, the same enjoys copyright protection.

IPOPHLSVISION,MISSION,ANDGOALS

Vision
An Intellectual Propertyconscious Philippines in a demystified, development oriented,anddemocratizedIPSystemby2020 (2020VISION:3DIP)

Mission
We are a knowledgedriven government organization that works towards economic, technological, and sociocultural development by communicating, enabling, and ensuring the effective use of the Intellectual Property System in all levels of society for the creation, protection, utilization, and enforcement of IntellectualProperty

StrategicGoals
RegulatoryGoals Deliverqualityandtimelypatents,trademarks,andotherregistrations Providespeedy,quality,andeffectivelegalremediesandbetheforumof choiceforIPdisputeresolution DevelopmentalGoals ProvideIPrelatedbusinessdevelopmentandtechnologytransferservices Institutionalizecopyrightsupportservices Increasethelevelofappreciationof,respectfor,andutilizationofIP Lead the advocacy for legal and policy infrastructures to address emergingnationalandglobaldemandsoftheIPsystem OrganizationalGoals Develop and maintain a highlymotivated, competent, and cohesive workforce committed to serve with professionalism, transparency, and integrity Provideaconduciveworkenvironmentthatsupportsprofessionalgrowth andpromotesworklifebalance

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THEORGANIZATIONOFIPOPHL
Director General IP Field Operations Unit (IPFOU) National Committee on IP Rights (NCIPR

Office of the Deputy Director General for Management Support Services

Office of the Deputy Director General for Operations, Legal, Policy, and International Relations

Financial Management & Administrative Service (FMAS)

Management Information Service (MIS

Bureau of Patents (BOP)

Bureau of Trademarks (BOT)

Documentation, Information & Technology Transfer Bureau (DITTB)

Bureau of Legal Affairs (BLA)

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ATTY.RICARDOR.BLANCAFLOR DIRECTORGENERAL

DEPUTYDIRECTORGENERAL

ATTY.ANDREWMICHAELS.ONG

ATTY.ALLANB.GEPTY
DEPUTYDIRECTORGENERAL

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THEBUREAUOFPATENTS

EPIFANIOREYM.EVASCO DIRECTORIV

LOLIBETHR.MEDRANO DIRECTORIII

THEBUREAUOFTRADEMARKS

ATTY.LENYB.RAZ DIRECTORIV

ATTY.MA.CORAZONDP.MARCIAL DIRECTORIII

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THEBUREAUOFLEGALAFFAIRS

ATTY.NATHANIELS.AREVALO DIRECTORIV

ATTY.EDWINDANILOADATING DIRECTORIII

THEDOCUMENTATION,INFORMATION,AND TECHNOLOGYTRANSFERBUREAU

CARMENG.PERALTA DIRECTORIV

EVELYNM.DAPLAS DIRECTORIII

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THEMANAGEMENTINFORMATIONSERVICE

VINALIZARUTHC.CABRERA DIRECTORIV

LOURDESF.ALABARCA DIRECTORIII

THEFINANCIALMANAGEMENTANDADMINISTRATIVESERVICE

FRISCOL.GUCE DIRECTORIV

ERICT.LANADO DIRECTORIII

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EXECUTIVESUMMARY
Inthefirstquarterof2010,IPOPHL,withanewmanagementatthehelmand the participation of the entire organization, refocused and redefined its vision, mission, and strategic goals so that the organization can be more attuned to the needs of its stakeholders. The strategic goals laid out the roadmap to achieve IPOPHLsvisionin2020. Operational results for the year were much better compared to 2009. Coming from mostly two (2) consecutive years of decline in patent and trademark activity,aconsequenceoftheglobalfinancialcrisisfeltbyalmosteveryIPOfficesin the world, filings bounced back in 2010. Filings in 2010 for invention patents rebounded to a 13% growth after consecutive years of decline and are 2% higher than2008results.Comingfromadecreaseofabout5%in2009,trademarkfilings for2010increasedby12%andis6%highercomparedto2008figures. Pendency age from filing to grant or registration of patents, utility models, andindustrialdesignscontinuedtoimprove.Theaveragependencyagefromfiling to grant of patents currently takes 4.8 years compared to 5 years in 2009, a 4% decrease.Forutilitymodel,thependencyageisnow5.5months,adecreaseof51% from 2009 figures. The pendency age for registration of industrial design is 6.64 monthsin2010,an8%increasefromthatof2009.Ontheotherhand,thependency agefortrademarksfromfilingtoregistrationisnow9.9monthscomparedto10.73 monthsin2009,a7%decrease. To further improve its service delivery through an efficient and globally competitive IP registration system, IPOPHL entered into a Cooperation Agreement with WIPO for the Development of an Intellectual Property Office Technical Infrastructure.Themajorcomponentoftheagreementistheimplementationofthe Intellectual Property Automation System (IPAS) in the IPOPHL. Through the IPAS, IPOPHL will be able to provide the public with more efficient and highly effective delivery of quality and timely services that follow best practices and international standards. StrengtheningIPenforcementwasoneofIPOPHLsmajorinitiativesin2010. Itcommitstoprovideaspeedy,qualityandeffectivelegalremediestoIPdisputes. In2009,ittookanaverageof3.62yearstorenderfinaldecisiononoppositionand cancellationcasesfiledwiththeBureauofLegalAffairs.In2010,thiswasbrought down to about 1.19 years, a decrease of about 67%. On the other hand, cases involving administrative complaints for violation of laws relating to intellectual propertyrightsnowtakeaboutoneyear,animprovementoverthe1.55yearsittook in 2009. IPOPHL also set up an arbitration mechanism and revived the mediation mechanismasalternativemeansfordisputeresolution. Since its creation in 2005, the National Committee on IP Rights (NCIPR), of which IPOPHL is a key member, has seized counterfeit and pirated goods totaling

16

almost Php 20 billion. For 2010 alone, the combined operations of the NCIPR Member Agencies resulted in seizures of 5,091,704 pieces and 217 boxes of counterfeitandpiratedgoodswithanestimatedamountofPhp5.29billion.IPOPHL wasalsoapartytoseveralMemorandaofAgreementwithvariousIPorganizations andagenciestosupporttheprotection,promotion,andenforcementofIPrights. To contribute more to the Philippines technological development by promotinginnovation,IPOPHLenteredintoacooperationagreementwiththeWorld IntellectualProperty Organization (WIPO) on the establishment and support of the Innovation andTechnologySatelliteOffices(ITSOs). Theestablishmentof ITSOs or patent libraries will provide Filipinos access to global science and technology informationthatarelegallyavailablefordevelopinginnovations Numerous outreach and awareness activities on IP targeting the academe, SMEs, RDIs, businesses, and other nonIP organizations were conducted in 2010. IPOPHL also joined other government agencies in making use of technology and social networking websites to bring the government and IP closer to the public through an improved interactive website and the use of Facebook and Twitter. IPOPHLalsoopenedupits7thIPSatelliteOffice(IPSO)inIloiloinNovember2010. IPOPHL further strengthened its relationship with fellow ASEAN Member CountriesandcontributetothedevelopmentofASEANasaformidableblocinthe community of nations. The Philippines was appointed Chairman of the ASEAN Working Group on Intellectual Property Cooperation (AWGIPC) in 2010. As Chair, IPOPHL steered the group in preparing for its Strategic Action Plan 20112015 by organizingandleadingthe33rdAWGIPCMeetingheldinShangrilaHotelinCebuand the AWGIPC Strategic Planning Session held at the New World Hotel in Makati. It alsofacilitatedthesharingofknowledgeofpatentexpertsfromtheASEANIPOffices on the technical, procedural, and structural requirements for the effective ASPEC implementation through the Patent Directors Meeting under the ASEAN Patent ExaminationCooperationProgram(ASPEC). Aiming for organizational excellence, IPOPHLs Management Committee attended a Bridging Leadership Course in JuneJuly 2010. The course was an intensive leadership journey that aims to build ownership of IPOs social and economic outcomes among its management and the different stakeholders, resultinginmobilizingsupportforinnovativeandsustainableprograms.

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18

REGULATORYGOALS

Deliver quality and timely patents, trademarks, andotherregistrations

TRENDSINFILINGS,GRANTS,ANDREGISTRATIONS

TOTALTRADEMARKFILINGS Trademarkapplicationsfiledreboundedfroma5%declinein2009toa12% growthin2010.From15,011in2009,filingswentupto16,827.Thisisthehighest numberoffilingsreceivedbyIPOPHLsinceyear2000.Thefilingtrendfrom2005as showninFigure1showedthattherewasacontinuousincreaseinfilingsexceptin 2009wherewasa5%decreasecausedbytheglobaleconomiccrisis.

Figure1
TRENDINTRADEMARKFILINGS
2005 2006 14% 12% 2007 2008 2009 2010

20,000 15,000
5%

15% 10%
4% 5%

FILINGS

5% 0%

10,000 5,000 0

5%

5% 10%

TotalFilings

Growth

GROWTH

RESIDENTANDNONRESIDENTTRADEMARKFILINGS
Figure2

TRENDINRESIDENTANDNONRESIDENTTRADEMARKFILINGS
2005 2006 18% 15% 8% 3% 9% 9% 4% 4% 2% 0% 10% 2007 2008 2009 2010

12,000 10,000 FILINGS 8,000 6,000 4,000 2,000

20% 15% 5% 0% 5%
12%

10% 15%

0 NonResident Resident Growth(NR)

Growth(R)

GROWTH

10%

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Theeffectsoftheglobalfinancialcriseswerefeltmoreinnonresidentfilings. Figure2showsthatthereisacontinuedincreaseinnonresidenttrademarkfilings from2005exceptin2009whereitdeclinedby12%.Contrastthiswiththenumber ofresidentfilings,whichexhibitedcontinuedgrowthatanaverageofabout6%per year. In 2010, there was a 6% growth of nonresident filings from 2009 and a 9% growthinresidentfilings.Totalfiguresfor20052010showedthattrademarkfilings fromthoseoutsideofthePhilippinesaccountfor43%,whilethebalanceof57%is creditedtothoseresidinginthePhilippines. TRADEMARKFILINGSACCORDINGTOREGION
Figure3
TRADEMARKFILINGSINTHEREGIONS NCR 65%

Others 27%

XI 1%

III 2%

IVA 2%

VII 3%

Most of the resident filings came from the National Capital Region, which accountedfor65%ofthetotalfilingsfrom20052010.CentralVisayas(RegionVII), where the Cebu IP Satellite Office is located came in second while Calabarzon (Region IVA), Central Luzon (Region III), and Davao (Region XI) were the next top filers.

Figure4
TRADEMARKFILINGSINTHEREGIONS2010
XI 2% Others 3%

III 4% VII 4% IVA 4%

NCR 83%

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In2010alone,535trademarkapplicationswerefiledthroughtheIPSatellite Offices.NCRhadan86%shareoffilingsin2010asseeninFigure6whileRegions IVA(CALABARZON),VII,andIIIcameinnextwith4%shareseach. TRADEMARKFILINGSACCORDINGTOCOUNTRYOFORIGIN

Figure5

TOPFILERSBYCOUNTRYOFORIGIN
(*excludingthePhilippines)

OTHERS 34% KRKOREA REPUBLICOF 2% SGSINGAPORE 2% NLNETHERLANDS 3% GBUNITED CNCHINA KINGDOM 4% 3%

USUNITEDSTATES OFAMERICA 27%

FRFRANCE 4%

DEFEDERAL REPUBLICOF GERMANY 5%

JPJAPAN 8% CHSWITZERLAND 8%

TheUnitedStatesofAmerica(USA)continuedtobethetoptrademarkfiler for nonresident applications with a 27% share from 20052010. Japan and Switzerlandcameinnextwith8%shareeach.
Figure6

TOPFILERSBYCOUNTRYOFORIGIN2010
(*excludingthePhilippines) OTHERS 27% GBUNITED KINGDOM 3% NLNETHERLANDS 3% SGSINGAPORE 3% KRKOREA REPUBLICOF 4% FRFRANCE 4% DEFEDERAL CNCHINA REPUBLICOF 6% GERMANY 5% JPJAPAN 10% CHSWITZERLAND 7% USUNITEDSTATES OFAMERICA 28%

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 The USA had a 28% share of trademarks filed in the Philippines in 2010 followedbyJapanwith10%,Switzerland7%,andChina5%. TRADEMARKREGISTRATIONS Meanwhile, trademark registrations increased by 8% in 2010 with 12,028 registeredcomingfromconsecutiveyearsofdecline.Themostsubstantialincrease would be in 2007 where 17,592 registrations were recorded, the highest number since year 2000. Registrations continued to increase from 2005 declining only in 20082009.
Figure7
TRENDINTRADEMARKREGISTRATIONS
2005 2006 2007 2008 2009 2010

20,000
47%

15,000
26%

39%

10,000
8%

5,000
21% 19%

0 TotalRegistrations Growth

60% 50% 40% 30% 20% 10% 0% 10% 20% 30%

REGISTRATIONS

INVENTIONPATENTFILINGS Inventionfilingsincreasedyearlyfrom2005butdroppedin20082009.The dropinfilingsfortheyears2008and2009wascausedbytheglobaleconomiccrisis. However in 2010, as the global economy recovered, filings bounced back and registereda13%growth.
Figure8
TRENDININVENTIONPATENTFILINGS
2005 2006 2007 2008 2009 2010 13% 10% 10% 7%

3,600 3,500 3,400 3,300 3,200 3,100 3,000 2,900 2,800 2,700

15% 10% GROWTH 5% 0%

FILINGS

5% 10%

5% 10% 15%

TotalFilings

%Growth

GROWTH

22

RESIDENTANDNONRESIDENTINVENTIONPATENTFILINGS

Figure9
TRENDINRESIDENTANDNONRESIDENTINVENTIONPATENTFILINGS
2005 2006 2007 2008 2009 2010

3,500 3,000 2,500 FILINGS 2,000 1,500 1,000 500 0 NonResident Resident %Growth(NR)
9% 10% 6% 14% 7% 1% 5% 4% 9% 20% 3% 34%

40% 30% 10% 0% 10% 20% 30% %Growth(R) GROWTH 20%

Nonresidentscontinuetodominatethepatentactivityinthecountryasthey accountfor94%ofthefilingsinthePhilippines. Meanwhile, nonresident filings peaked in 2010 with a 14% growth after a twoyeardecline.Residentpatentfilingsalsoexperiencedadecreasestarting2008 andstillfailedtoincreasein2010. PCTFILINGS 78% and 86% of the applications received by IPOPHL in 2008 and 2009, respectively, were filed through the Patent Cooperation Treaty (PCT). PCT applicationsincreasedby26%in2010fromthe2,509applicationsreceivedin2009. 37%ofthesewerefilingsfromtheUSA.
Figure10
TRENDINPCTFILINGS
2005 2006 2007 2008 2009 2010 26%

3,500 3,000 FILINGS 2,500 2,000 1,500 1,000 500 0 Filings %Growth
4% 12% 11% 13% 11%

30% 20% 10% 0% 10% 20% GROWTH

23

Figure11

TopPCTFilers(NationalPhaseEntries)
Belgium 2% France 3% Sweden 3% Others 14% USA 37%

Australia 2%

UnitedKingdom 4% Netherlands 4% Switzerland 9% Germany 10%

Japan 12%

Figure12

TOPPCTFILERS2010
Belgium 2% OTHERS 13% USA 36%

RepublicofKorea 2% Sweden 3% UnitedKingdom 4% Netherlands 4% France 4%

Germany 8%

Switzerland 10%

Japan 14%

As with trademark filings, USA remains the top filer of invention patents through the PCT with a 37% share from 20052010. Japan and Germany followed with12%and10%ofthefilingscomingfromthesecountries,respectively. USA and Japan still took the lead in PCT filings in 2010 with 36% and 14% shares,respectively,followedbySwitzerland.

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INVENTIONPATENTGRANTS Patentgrantsfollowedanupdowntrendfrom2005to2010.Froma100% increase in 2009, grants decreased by 31% in 2010. This is partly due to the designation of some patent examiners to assist filers in the regions through the IPSOs.SomeexaminerswerealsoassignedtoworkontheIIPMSProject.
Figure13
TRENDININVENTIONPATENTGRANTS

2005

2006

2007

2008

2009

2010

2,000 GRANTS 1,500

49% 100%

150% 100% 50% 0%

27% 53% 31%

1,000 500 0

13%

50% 100%

UTILITYMODELFILINGS Utility model filings followed a decreasing trend from 20052007 but registered a big increase in 2008. It further increased in 2010 by 13% following a plateauyear.
Figure14
TRENDINUTILITYMODELFILINGS
2005 2006 2007 2008 2009 2010

TotalGrants

%Growth

700 600 FILINGS 500 400 300 200 100 0 TotalFilings %Growth
8% 21% 1% 0% 13% 28%

40% 30% 20% 10% 0% 10% 20% 30% GROWTH

GROWTH

25

RESIDENTANDNONRESIDENTUTILITYMODELFILINGS Residentfilingscontinuetoaccounttoabout94%oftotalutilitymodelfilings. Whileresidentfilingsgrewby3%in2010,nonresidentfilingssuffereda27%decline aftercontinuouslyincreasingfrom2005.

Figure15
TRENDINRESIDENTANDNONRESIDENTUTILITYMODELFILING
2005 2006 2007 45% 2008 2009 45% 2010

700 600 500 FILINGS 400 300 200 100 0 NonResident

2% 1% 19% 42%

4%

3% 2%

3%

50% 40% 30% 20% 10% 3% 0% 10% 20% 27% 30% 40%

UTILITYMODELREGISTRATIONS Utilitymodelregistrations,exceptfor2007wheretheeffectsofthebacklog reductionprogramwerefelt,continuetohoveratthe300to400levelrepresenting about60to70%offilings.

Figure16
TRENDINUTILITYMODELREGISTRATIONS
2005 2006 2007 2008 2009 2010

Resident

%Growth(NR)

%Growth(R)

1,000 800 GROWTH 600 400

12% 3% 41% 2% 19% 158%

200% REGISTRATIONS 150% 100% 50% 0% 50% 100% TotalRegistrations %Growth

200 0

GROWTH

26

INDUSTRIALDESIGNFILINGS Applications for industrial design experienced a decline in 20062007 but increasedin2008by41%.Comingfromabigdeclineof36%in2009,itrebounded toa9%growthin2010.

Figure17
TRENDININDUSTRIALDESIGNFILINGS
2005 2006 2007 2008 2009 2010

1,400 1,200 GROWTH 1,000 800 600 400 200 0 TotalFilings %Growth
24% 36% 10% 25% 9% 41%

60% 40% FILINGS GROWTH 20% 0% 20% 40% 60%

RESIDENTANDNONRESIDENTINDUSTRIALDESIGNFILINGS Resident filings for industrial design declined in 2010 by 13% after a continuousincreasefrom2007.Meanwhile,afterconsecutivedeclinesin20062007 andadeclineagainin2009,nonresidentindustrialdesignfilingsincreasedby30%in 2010.
Figure18
TRENDINRESIDENTANDNONRESIDENTINDUSTRIALDESIGNFILINGS
2005 2006 2007 2008 34% 12% 4% 3% 21% 45% 1% 11% 5% 13% 2009 2010

700 600 500 FILINGS 400 300 200 100 0 NonResident Resident
30%

40%
30%

20% 0% 20% 40% 60%

%Growth(NR)

%Growth(R)

27

INDUSTRIALDESIGNREGISTRATIONS Fromadecreaseof21%in2006,registrationsforindustrialdesignincreased by 123% in 2007. It again declined in 20082009 by as much as 57% and grew by 23%in2010.
Figure19
TRENDININDUSTRIALDESIGNREGISTRATIONS
2005 2006 2007 123% 2008 2009 2010

1,400 1,200 GROWTH 1,000 800 600 400 200 0 TotalRegistrations %Growth
21% 9% 57% 23% 103%

150% REGISTRATIONS 100% 50% 0% 50% 100%

AVERAGEPENDENCYAGE
TRADEMARKS Oneofthemeasuresofthetimelinessofpatentsandtrademarksisthetime ittakesforapplicationstobegranted/registeredfromthetimeitwasfiledandis referredtoastheaveragependencyage.Since2005,IPOPHLhasbeencontinuously streamliningitsprocessesandprocedurestoshortenpendencyage.Sincethen,the average pendency age for trademarks decreased remarkably. From 2005 to 2010, the average pendency age for trademark registration decreased by 78.9%. From 47.42monthsin2005,itisnow9.9months.
Figure20
AVERAGEPENDENCYAGEFROMFILINGTOREGISTRATION OFTRADEMARKS(INMONTHS) 50 40 30 20 10 0
2005 2006 2007 2008 2009 2010 19.04 10.75 10.73 9.99

47.42 37.6

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 First action pendency measures the time it takes to issue a registrability reportforatrademarkapplicationfromthetimeitisfiledinIPOPHL.Fromahigh of 19.95 months in 2005, the first action pendency decreased to as low as 2.48 monthsin2009.However,itincreasedin2010toanaverageof3.83months.

Figure21
AVERAGETRADEMARKSFIRSTACTIONPENDENCY(INMONTHS) 25 20 15
11.94 19.95

10 5 0
2005 2006 2007 2008 2009 5.19 2.32 2.48 2010 5 4.84 4.76 2010 3.83

INVENTIONPATENTS IPOPHLs efforts to deliver timely patents have brought the average pendency age from filing to grant of invention patents from 5.21 years in 2005 to 4.84yearsin2010.
Figure22
AVERAGEPENDENCYAGEFROMFILINGTOGRANTOF INVENTIONPATENTS(INYEARS) 5.4 5.3 5.2 5.1 5 4.9 4.8 4.7 4.6 4.5 4.4
2005

5.33 5.21

5.31

2006

2007

2008

2009

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 UTILITYMODEL The average pendency age for registrations for utility model and industrial designwerereducedby83%and53.6%,respectively.
Figure23
AVERAGEPENDENCYAGEFROMFILINGTOREGISTRATIONOF UTILITYMODEL(INMONTHS) 35 30 25 20 15 10 5 0
2005 2006 2007 2008 2009 2010 16.52 10.99 11.29 5.50

32.6 28.25

INDUSTRIALDESIGN
Figure24
AVERAGEPENDENCYAGEFROMFILINGTOREGISTRATIONOF INDUSTRIALDESIGN(INMONTHS) 25 20 15 10
7.9 14.3 19.28

12.89 6.64

5 0
2005 2006 2007 2008 2009

6.11

2010

INTEGRATEDINTELLECTUALPROPERTYMANAGEMENTSYSTEM
Work on the Integrated Intellectual Property Management System (IIPMS) ProjectcommencedinMarch2009whentheFirstAdvisoryMissiononAutomation was conducted by the World Intellectual Property Organization (WIPO) in the Philippines. WIPO undertook the mission to conduct an initial assessment of the automation systems and IT infrastructure of the office as well as the skills of its IT personnel upon the request of IPOPHL. The mission also sought to make

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recommendations to improve and maximize the level of automation, including the feasibility of using WIPOs Intellectual Property Automation System (IPAS), WIPOs automated system designed for IP offices. The team also made a presentation on the IPAS strategy, architecture, technology, functionality, and productive development.IPASisasystemdevelopedoverseveralyearsandownedbyWIPO, which is given to Member States under a package of technical assistance for free. The technical assistance includes the use by IPOPHL of the software, including its upgrades,andtechnicalconsultancyforIPASimplementationandtheconductofthe subprojects required for the deployment of the system. It covers endtoend processing of IP (patents, trademarks, utility model, and industrial design) applicationsthroughouttheirlifecycle,includingprintingofcertificates,publication, and postregistration. It also allows users to track the applications/registrations at all stages of processing. It is webbased and has advanced search tools. IPAS is a veryflexiblesystemandcanbeeasilycustomizeddependingontherequirementsof aspecificIPoffice.Itisalsoconstantlyimprovedbasedonthebestpracticesofthe IPoffice. With the IIPMS, IPOPHL aims to be more efficient and highly effective and deliver quality and timely services that follow the best practices and international standards. It will also reduce the processing time of IP applications by 30%. The IIPMS will be IPOPHLs primary tool to administer the IP system, manage all IP applicationsfromreceptiontopostregistration,andprovidehighqualityservicesto itsstakeholdersandthepublicingeneral.Itwillbebasedonstreamlinedbusiness processes and will provide highly reliable information from updated and accurate databases. It has the following subprojects: business process reengineering and redesign of workflows of Patent (Invention), Utility Model, Industrial Design, and Trademarks; updating and cleanup of the patents and trademarks databases; and IPASimplementation. The IPOPHL has two (2) major systems for the automated processing of P applicationstheTrademarkElectronicApplicationManagementSystem(TEAMS), whichwasdevelopedinhouseandthePatentAdministrationComputerizedSystem (PACSYS) that was outsourced to Japan International Cooperation Agency (JICA). There are other smaller standalone systems that are linked to these two (2) major systems that have responded to the needs of the office over the last few years. However,IPOPHLfeltthattherewasaneedtoenhancetheseautomatedsystemsif IPOPHListomeetinternationalstandardsnecessaryforIPofficestoexchangedata efficiently, access and interface with various electronic systems needed to administertheIPsystem,meettheevolvingrequirementsofmodernIPoffices,and providebetterandtimelyservicestoitsstakeholders. Basedontheresultsoftheassessmentandtherecommendationsmadeby theWIPOteam,IPOPHLdecidedtoadoptIPASasitswayforwardtomodernizeitsIT systems. IPOPHL then formally requested technical assistance from WIPO for the implementationoftheIPASintheoffice.IPOPHLsubsequentlydiscussedthescope anddeliverablesofthesecondmissionwithWIPO.Thesecondmissionwouldcover anindepthassessmentoftheITsystemsoftheofficeinordertopreparetheproject

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plan and the workplans for the subproject plans on data cleanup and migration; systems design integration; and the other activities on IPAS implementation in IPOPHL. Thus, a second mission was conducted in March 2010 as a next step towardstheimplementationofIIPMS. In September 2010, IPOPHL entered into a Cooperation Agreement with WIPO for the Development of an Intellectual Property Office Technical Infrastructure. The major component of the agreement is the implementation of WIPOIPAS in the IPOPHL. In preparation, IPOPHL conducted initial studies on the IPASdatabaseandsystemarchitectureandalsothesystemsintegrationofexisting systemsofIPOPHLwithIPAS.TheIIPMSteamformulatedstrategiesfortheupdating ofthedatabasesofpatentsandtrademarks.Theteamisresponsibleforupdating utility model, industrial design, and invention records that are published for oppositionorregisteredbefore30May2010andtrademarkregistrationsbefore31 May2010.IPOPHLandathirdpartyserviceproviderhasupdated98.68%of45,151 industrial design records, 12.48% of 70,625 utility model records, and 25.11% of 85,520inventionrecords.

WIPODirectorGeneralFrancisGurryandIPOPHLDirectorGeneral RicardoBlancaflorsignacooperationagreementforthemodernization ofthetechnicalinfrastructureoftheIPPhilippinesthatwillenableitto haveoneofthemoreadvancedpatentandtrademarkautomated systemsintheregion.

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Provide speedy, quality, and effective legal remedies and be the forum of choice for IP disputeresolutions

STRENGTHENINGTHEENFORCEMENTOFIP

Protecting Intellectual Property Rights (IPR) is a major component of the Philippine strategy to develop local creativity and innovation, improve competitiveness, attract foreign investments, and generate jobs. Since 2005, the IPOPHL,incoordinationwithlawenforcementagenciesandprivatesectorpartners, has been spearheading the strengthening of the IPR regime in the country. While IPOPHLhasnoenforcementmandate,ittakestheleadinensuringenforcementof IPRbothinoperationsandprosecutionofIPRviolationsthroughaholisticapproach usingthefollowingstrategies: IPOPHLincoordinationwiththeBOCwillexercisevisitorialpowerson importeditemsthatarecounterfeit. IPOPHL in coordination with the OMB will exercise visitorial and inspectionpowersonopticalmediaproducts. PNPandNBIwillconducttestbuyonsuspectedcounterfeititemsas basisofprobablecausetoeffectenforcementofIPR. Applicationofsearchwarrants. CancellationofVisa(e.g.USVisa)ofIPRviolators. Cancellation of business name registration with the Department of TradeandIndustry(DTI). Cancellation of Mayors Permit in coordination with the Local GovernmentUnits(LGUs). Filing of cases for violation of Consumer Welfare Act against IPR violators. Revocation of registration with the Securities and Exchange Commission (SEC) of IPR violators who are corporations or partnerships. ApplicationofExecutiveOrderNo.913onthepowerofDTItoenforce tradeandindustrylaws. For the period 2005 to 2010, the combined enforcement operations of the IntellectualPropertyUnitBureauofCustoms(IPUBOC),AntiFraudandCommercial Crimes DivisionPhilippine National Police (AFCCDPNP), Intellectual Property Rights DivisionNationalBureauofInvestigation(IPRDNBI)andOpticalMediaBoard(OMB) under the NCIPR resulted in the confiscation of 31 replicating machines and 39,306,664 pieces, 31 containers and 39,034 boxes of counterfeit and pirated products amounting to P19,995,412,034.09. For the period January to December 2010, the NCIPR was able to confiscate 5,091,704 pieces and 217 boxes of pirated andcounterfeitgoodswithanestimatedamountofP5,295,596,875.50.

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 In celebration of the 12th anniversary oftheIPCodeinJune2010,IPOPHLlaunched the CounterfeitFree IPOPHL Program in its aimtostrengthenitsadvocacyagainsttheuse ofcounterfeitandpiratedproducts.Asafirst activity under said program, IPOPHLs new Director General led all officials and employees in signing the I Am an IP Advocate commitment wall in IPOPHL. To emphasize the significance of the efforts of the government in curbing piracy and counterfeiting in the country, IPOPHL led the NCIPR in the ceremonial destruction of counterfeitandpiratedgoodsheldon23June 2010 at the headquarters of the Philippine National Police in Camp Crame, Quezon City. DirectorGeneralRicardoR.Blancaflorholdson Theeventmarkedthe13thanniversaryofthe tothePNPsV150armoredpersonnelcarrieras itrolledoverfakediscsandCPUsinCamp passage of the Intellectual Property Code of CramelastJune23,2010 the Philippines (Republic Act No. 8293). Among the goods destroyed included pirated CDs and DVDs, fake routers, counterfeitLouisVuittonandCoachbags,photocopiedbooksandfakemedicines. Among those who witnessed the occasion were members of the Executive CommitteeofIPOPHLandrepresentativesoftheembassiesoftheUnitedStatesof AmericaandSwitzerland.

LEGISLATIVEREFORMSANDINITIATIVES

IPOPHLsupportedthepassageoftheAntiCamcordingActof2010(Republic Act 10088) approved on 13 May 2010. The law aims to curb illegal camcording activitiesinthecountry.Itprohibitsandpenalizestheunauthorizeduse,possession, and/or control of audiovisual recording devices for the unauthorized recording of cinematographic films and other audiovisual works and/or their soundtracks in an exhibitionfacility. RepublicActNo.9502(UniversallyAccessibleCheaperandQualityMedicines Act of 2008) was approved on 06 June 2008. The law amends specific sections of Republic Act No. 8293 (Intellectual Property Code), Republic Act No. 6675 (The GenericActof1988),andRepublicActNo.5921(ThePharmacyLaw).TheDOHDTI IPOBFADJointAdministrativeOrder200801,whichistheImplementingRulesand Regulations for Republic Act No. 9502, was signed on 04 November 2008. The IPOPHLs Bureau of Patents (BOP) is amending its Manual of Substantive Patent ExaminationProcedures(MSPEP)fordrugsandmedicines. Republic Act No. 10055 (Philippine Technology Transfer Act of 2009) took effect on 08 May 2010. It provides the framework and support system for the

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ownership, management, use, and commercialization of intellectual property generated from research and development funded by government and for other purposes.ThismakesresearchanddevelopmentinstitutionthedefaultownerofIPR arisingfromtheresultsofgovernmentfundedresearch.Inaddition,scientistswill now be allowed to create, manage, or serve as consultants to companies that can commercially exploit technology arising from government funded research. The Joint DOSTIPO Administrative Order No. 022010 provides for the Implementing Rules and Regulations of RA No. 10055. The IRR underlined the intent of the law whichislodgingownershipofIPrightstoresearchanddevelopmentinstitutionsby settingparametersoncopyrightownershipandrecoveryofIPownership. IPOPHLs legislative initiatives are aimed at strengthening the enforcement of IP rights. Two (2) House Bills, House Bill No. 47 (An Act Amending Certain Provisions of Republic Act No. 8293 Entitled, An Act Prescribing the Intellectual Property Code and Establishing the Intellectual Property Office, Providing for its Powers and Functions and for Other Purposes) and House Bill No. 267 (An Act Amending Certain Provisions of Republic Act No. 8293, Otherwise Known as the Intellectual Property Code of the Philippines, and for Other Purposes) both filed on July 2010 by Representatives Rufus B. Rodriguez and Juan Edgardo M. Angara, respectively, seeks to amend the Code through the integration of comprehensive, swift, efficient and adequate strategies designed to respond to the criminal onslaughtofInternetpiracy.Atthesametime,itseekstogiveasmuchconcernto the rights of performers, phonogram producers and broadcasters in the same breathasthoseaccordedauthorsofartisticandliterallyworks,byacknowledging the right of such phonogram producers, performers or broadcasters to control or becompensatedforthevariouswaysinwhichtheirworksareusedandenjoyedby others.Thismeasurealsoseekstorecognizerightstodistributionandrental,and rights to receive paymentsforcertainformsof broadcasting orcommunicationto thepublic.Thesetwo(2)billswereconsolidatedasapprovedbytheCommitteeon TradeandIndustryon23November2010andisnowHouseBill3841. Further, House Bill 3147 entitled An Act Amending Certain Provisions of RepublicActNo.8293EntitledAnActPrescribingtheIntellectualPropertyCodeand Establishing the Intellectual Property Office, Providing for Its Powers and Functions andForOtherPurposesfiledbyRepresentativeJoelRoyDuavitonOctober201and SenateBillNo.2553entitledAnActAmendingCertainProvisionsofRepublicActNo. 8293EntitledAnActPrescribingtheIntellectualPropertyCodeandEstablishingthe Intellectual Property Office, Providing for Its Powers and Functions and For Other PurposesfiledbySenatorManuelB.VillaronSeptember2010seektoaddressthe inadequacy of enforcement mechanisms to protect IPR by according visitorial powers and empowering the Director General of the IPOPHL to undertake enforcement functions supported by concerned agencies. Thus, IPOPHL would be moreadequatelyequippedtoprotectIPRandprovideimmediateassistancetoIPR owners.

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 JUDICIALANDIPRDISPUTERESOLUTIONREMEDIES

TheproposedspecialrulesonIPlitigationarenowunderdeliberationunder a special committeeinthe SupremeCourtprior toits submissionto theCourten bancforapproval.Theinitialdraftwaspreparedbyajointtechnicalworkinggroup (TWG)comprisingofthePolicyUnitofIPOPHL,variousIPassociations(IPAP,IPPRO, IPAAandIPCoalition),othergovernmentagenciesinvolvedintheenforcementof IP such as OMB, DOJ and BOC as well as interested industry associations like FILSCAPandBSA.ItisanticipatedthatoncetheSupremeCourthasapprovedthe finaldraftofthespecialrules,aseriesoforientationandseminarswillbeorganized byIPOPHLandthePhilippineJudicialAcademytoacquaintthejudgesofthenew rules and to provide guidance on the implementation of the same. It is also expectedthatIPOPHLwillprovidethejudgeswithacontinuingseriesoftrainingon IP,whichitdidin2006and2009. Further,toincreasecourtcompetenceandtheirefficiencyinthedisposition ofIPcases,theproposedspecialrulesrecommendsthedesignationoftwentytwo (22) Regional Trial Courts, located mostly in urbanized areas throughout the country, as Special IP Courts having exclusive jurisdiction over IP cases within their respective territorial jurisdictions. Aside from the advantage of creating a systemwhereinresourcesfortrainingandcapacitybuildingofcourtpersonnelmay bemoreeconomicallydistributedamongalimitednumberofcourts,theproposal seeks foremost to expedite court procedures and reduce the backlog of IP cases. IncreasingvolumeofIPcasesconcentratedinselectedcourts,thejudgesinthese special courts will develop theexpertisein IPcases, thus,hasteninglitigationand raising the quality and consistency of decisions. Different stakeholders welcome thismove. Complementary to the creation of Special IP Courts, the proposed Rules likewise recommends that the special courts be authorized to issue criminal and civilwritsofsearchandseizurewhichareenforceablenationwide,evenoutsideof their respective territorial jurisdictions. Such authority would encourage more brandownerstopursuelegalremediestoenforceIPRinlightofsafeguardsagainst prejudicial disclosure or leakage of critical operational information. Aside from a more expedient resolution of warrant applications, judges from Special IP Courts wouldalsobemoreequippedtoestablishtherequirementsofprobablecausefor issuanceofawarrant,owingtotheirextensivetrainingandproficiencyinIP. Moreover,theproposedrulesalsorecommendsthatjudicialauthoritiesbe allowed, after hearing and conditioned upon the posting of a sufficient bond, to orderthatgoodsfoundinfringingbedisposedofoutsidethechannelsofcommerce after the filing of a complaint. Relevant evidence will be preserved under the requirement of retaining representative samples, together with photographs and inventories, which may be used as evidence in lieu of the actual items. The proposal seeks to alleviate the burden of IPR owners who must shoulder the exorbitant cost of storage, and addresses the problem of seized goods of a
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perishable nature, which will spoil during longterm storage. The remedy would likewisepreventthepilferageofwarehouses,whichmakespossiblethereleaseof dangerouscounterfeitgoodsintothemarket.

PUBLICPRIVATEPARTNERSHIPONIPR

Establishing and sustaining partnerships with public and private institutions are critical to the effective enforcement of IP rights. IPOPHL and IP Coalition signed on October 2005 a MOU agreeing to support each other and nurture a strategic partnership that will work to open the gateway to economicgrowthandprogressthrough genuine protection and promotion of NationalWorkshoponCounterfeiting,Piracy,and IPR. Considering the significance of BorderMeasuresconductedinpartnershipwiththe the collaborative agreement in the IPRBusinessPartnershiponSeptember2010 promotion, protection, and enforcement of IPR in the country, IPOPHL and IP Coalition reaffirmed this cooperation on August 2010, and agreed to develop projects within the next months. IPOPHL was also a party to a Memorandum of Agreement (MOA) on Cooperation of the Relevant Government Agencies of the Government of the Philippines with the Federation of the Swiss Watch Industry FH and Selective Trademark Union Limited (STU). Under the MOA, the parties agreed to promote multilateral cooperation and to develop mechanisms and channels aimed at sharingandexchangingrelevantinformationinordertopreventandsuppressthe importation, exportation, sale, wholesale, assembly, and manufacture of products thatinfringetheIPRofSwisswatchbrandsandothermembersoftheFederationof theSwissWatchIndustry(FH). Under IPOPHLs IPROTECT Program, the following seminars were organized by partner stakeholders to increase the skills and knowledge of law enforcement agenciesinIPRenforcement: ProductIdentificationSeminarEpson,Canon,andMotorola o The training was conducted on 23 March 2010 in partnership withEpson,Motorola&Canon,andwasattendedbythirtyfive (35)participantsfromtheNCIPR. Workshop on Effective Practices in the Regulation of Optical Media, DigitalPiracyandAntiPiracyEfforts o The workshop was in partnership with the Optical Media Board, United States Patent and Trademark Office Global IntellectualPropertyAcademy(USPTOGIPA)andtheEmbassy oftheUnitedStatesofAmericaManila.Itwasconductedon 15 July 2010 and was attended by seventyfour (74) participantsfromtheNCIPR.

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ProductIdentificationSeminarSwissWatches o Conducted on 17 August 2010 in partnership with the Federation of the Swiss Watch Industry FH (the Swiss watch industrysleadingtradeassociationcurrentlybringingtogether more than 500 members representing more than 90% of all Swiss watch manufacturers with a mission, among others, to protecttheinterestsoftheSwisswatchindustryonanational and international level) and the Embassy of Switzerland Philippines. Thirtyseven (37) participants from the NCIPR attendedtheactivity. NationalWorkshoponCounterfeiting,PiracyandBorderMeasures o ConductedinpartnershipwiththeIPRBusinessPartnership,a privateaggrupationofinternationalIPstakeholdersthatworks toreducetheeffectofcounterfeitingandpiracythroughactive and practical cooperation between IP rights owners and the Customs,Policeandotherfrontlinelawenforcementagencies andthroughtheimplementationoftheTRIPSAgreementand otherinternationalinstruments.

BECOMING THE FORUM OF CHOICE FOR LEGAL REMEDIES AND DISPUTERESOLUTIONS

One of the potent legal remedy in combating IP violation and piracy is the availmentbyIPRownersofinjunctivereliefincludingTemporaryRestrainingOrders (TRO)andPreliminaryInjunctions,aconcillaryactiontocomplaintsforIPviolation. In 2010, IPOPHLs Bureau of Legal Affairs (BLA) issued three (3) TROs/Preliminary Injunctions.RecognizingthereforethesignificantanddeterrenteffectofTROsand injunctiverelief,IPOPHLissuedOfficeOrderNo.186(EnhancingtheEnforcementof Intellectual Property Rights by Amending Certain Provisions of the Regulations on AdministrativeComplaintsforViolationofLawInvolvingIntellectualPropertyRights) in 2010 to amend the modified rules and regulations on administrative complaints whichtookeffectlast28March2001.TheamendmentstotheIPVRulestakeeffect inJanuary2011,strengtheningthegrantofprovisionalremedies/injunctiverelief.If the matter is of extreme urgency and the applicant for provisional remedies will suffer grave injustice and irreparable injury, the Hearing Officer, may issue, as approved by the Director with the concurrence of the Director General ex parte a TROeffectivefor72hoursfromissuancesubjecttothesubsequentgrantofregular TROeffectivefor30daysifevidencesowarrants.Italsoallowsthepresentationor submission of forensic evidence which may be admitted and given weight. Consultations with the stakeholders were conducted regarding these amendments/revisions. The amendments to the IPV rules were speeded up to bolsterIPOPHLsthrustinstrengtheningIPRenforcement,particularlyineliminating the counterfeit products in the streets through the power to issue injunctive relief (TROs, preliminary injunction), and modernizing IP litigation by expressly allowing theutilizationofforensic(andtechnologybased)evidence.
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 Meanwhile, the Rules and Regulations on Inter Partes proceedings (opposition to trademark application, petition for cancellation of registration, etc.) willbeupforrevisions.TherevisedInterPartesRuleswillundergoasecondround ofconsultationwithstakeholdersandwillbeimplementedbytheSecondQuarterof 2011. The revisions will further speed up the resolution of Inter Partes Cases and willcomplementtheimprovementsinregistrationprocessesoftheotherbureaus. In2010,IPOPHLhasdisposed142casescomprisedof137InterPartesCases (IPC) and 5 Intellectual Property Violation (IPV) Cases. This is a 54.63% decrease fromdisposalsin2009.However,itshouldbenotedthattherewerenodisposalsfor the periods of January until the 2nd week of March 2010 and from August to September 15, 2010 due to the retirement of the former BLA Director and the implementationofEONo.2,respectively,resultingtothedeclineinthenumberof casesdisposed.ThenewBLADirectorwasprohibitedfromissuingandpromulgating decisions and final orders as a precautionary measure until reappointment papers are issued by the Office of the President. At the end of 2010, 647 cases remain pendingconsistingof597IPCand50IPVcases.

Figure25
TRENDININTERPARTESCASEDISPOSAL20052010
2005 2006 2007 2008 2009 2010

350 300 250 200 150 100 50 0 IPC Growth

54% 41% 4% 3% 1% 96%

150% 100% 50% 0% 50% 100%

Figure26
TRENDINIPVCASEDISPOSAL20052010
2005 2006 2007 2008 2009 2010

30 25 20 15 10 5 0

280%

32% 4% 50%

8%

300% 250% 200% 150% 100% 50% 0% 64% 50% 100%

IPV

Growth

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The average turnaround time (TAT) from filing to disposal of IPC and IPV Caseswasreducedto1.19and1.01years,respectively,fromthe2009TATfigures.

Figure27
AVERAGETATOFIPCANDIPVCASEDISPOSAL 4 3.5 3 2.5 2 1.5 1 0.5 0

3.79 2.98 2.15 1.85 2.16 2.06 1.35

3.62 2.73

1.55

1.19 1.01

2005

2006

2007 IPC

2008 IPV

2009

2010

IPOPHL established the Mediation Office in January 2010 and convened a Mediation Steering Committee to provide the necessary legal and technical assistance in the crafting of the improved Rules of Procedure on the Mediation Proceedings.ApublicconsultationwasheldonJuly29,2010.On21October2010, IPOPHL issued Office Order No. 154 (Rules of Procedure for IPO Mediation Proceedings), which makes the referral to Mediation of the following cases filed from21October2010onwardsmandatory: 1. AdministrativecomplaintsforviolationofIntellectualPropertyRights (IPV)and/orUnfairCompetition; 2. Interpartescases(IPC); 3. Disputesinvolvingtechnologytransferpayments; 4. Disputesrelatingtothetermsofalicenseinvolvingtheauthorsrights topublicperformanceorothercommunicationofhiswork; 5. CasesappealedtotheOfficeoftheDirectorGeneralfromdecisionsof theBureauofLegalAffairs(BLA)andtheDocumentation,Information andTechnologyTransferBureau(DITTB);and 6. All other cases which may be referred to mediation during the settlementperioddeclaredbytheDirectorGeneral. The exception to the mandatory referral is in IPV cases where the complainant files an application for TRO and other injunctive relief, unless the parties agree to refer their case to mediation. Compromise agreements resulting frommediationshallhavetheeffectofdecisiononthemeritsonceapprovedbythe BLA Director. To provide administrative and technical support/coordination with Mediation Office, theBLA created a Task Force in chargeof providing inventory of mediatablecases,referraltoMediationOfficeofcasesandotherrelatedfunctions.
40

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DEVELOPMENTALGOALS

Provide IPrelated business development and technologytransferservices

IPOPHL set July 2010 as Patent Consciousness Month in celebration of the National Science and Technology Week. These celebrations emphasize the importantcontributionsofscience,technology,andinnovationtothecountry.One ofthehighlightsofthePatentConsciousnessMonthwasthelaunchoftheAlfredo M.YaoIntellectualPropertyAwardsthatwasconferredtoFilipinoIPRownerswho havecontributedormaybeabletocontributetothecountryseconomicgrowthand development.

ENABLING UNIVERSITIES AND RESEARCH AND DEVELOPMENT INSTITUTIONS(RDIs)TOCOMMERCIALIZETHEIRIPASSETS

With IPOPHLs partnership with Commission on Higher Education (CHED), state universities with research capability must adopt universitywide IP policies to guide their innovators through the IP Policy Program, thus, paving the way for innovation and technology commercialization. Both institutions issued a joint MemorandumCircularrequiringandmandatingallstateuniversitiesandcollegesas wellasprivatehighereducationinstitutionstoformulateanimplementanIPpolicy withintheircampuses.CampusbasedIPpolicieshavebecometheadvocacytoolsin school campuses around the country. IPOPHL conducted 11 IP Policy Workshops participated in by 36 universities and RDIs that aimed to provide them with knowledge on how their respective universities can create, institutionalize, and implementIPpolicies.Asaresult,24universitieswereabletodevelopIPpolicies. Two (2) of these universities (Xavier University and Laguna State Polytechnic University) were able to have their respective IP Policies signed by their Board of Regents(BOR)/BoardofTrustees(BOT)and22universitieswereabletodrafttheir respectiveIPpoliciesforsignature/approvaloftheirBOR/BOT.DITTBalsoprovided technical assistance to Higher Education Institutions (HEIs) and Research & Development Institutions (RDIs) by reviewing the contents of their IP Policies. In 2010, the following IP Policies were reviewed: Cebu State College of Science and technology, Product Development and design Center of the Philippines, Philippine Army,CebuInstituteofTechnology,XavierUniversity,andIfugaoStateUniversity. IPOPHL forged a partnership with the International Intellectual Property Institute (IIPI) on November 2010 to undertake a project to provide technical assistance to universities and research and development institutions to commercializepatentableandviableinventions.Theendresultoftheprojectisthe development of a protocol which will serve as a guide in commercializing the
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researchers inventions and the creation of a blueprint for the establishment of technology transfer offices or units that will manage technology commercialization ofacademicandresearchinstitutions.

THEPHILIPPINETECHNOLOGYTRANSFERACTOF2009

In August 2010, the Joint DOSTIPO Administrative Order No. 022010 was signed by DOST Secretary Mario G. Montejo and Director General Ricardo R. Blancaflor.TheAdministrativeOrdercoverstheImplementingRulesandRegulations ofRepublicAct10055orthePhilippineTechnologyTransferActof2009.TheActis consideredtheblueprintforanationallycoordinatedtechnologytransferframework of governmentfunded agencies (GFAs). It aims to promote and facilitate the transfer, dissemination, and effective use, management, and commercialization of IP, technology and knowledge resulting from research and development (R&D) fundedbythegovernmentforthebenefitofnationaleconomyandtaxpayers. Atotalof204applicationsfortechnologytransferagreementswerereceived in 2010 which consists of 38 applications for clearance for legal purposes, 34 requestsforexemptionsfromSections87and88oftheIPCode,4applicationsfor trademark license agreement recordal, 40 agreements for preliminary review, 1 requests for reconsideration, and 87 requests for amendments, clarifications, and issuanceofcertifiedtruecopiesofAgreement.Fromlastyearsfigure,therewasan 18% increase in TTA filings in 2010. Registered agreements in 2010, classified by industry sector, show that the top industries are: business/technical services industries, pharmaceutical industries, electronics/ electrical appliances and parts, computersoftware,andmachineryandequipment. With 180 actions issued, 52 certificates were issued and 128 notices were prepared consisting of notices of compliance, recordal of trademark, license agreement, preliminary review of license agreement, and amendments and clarificationsoncertainprovisionsoftheRulesandRegulations.

SUPPORTINGINNOVATIONANDTECHNOLOGY

IPOPHL also entered into a cooperation agreement with the World IntellectualProperty Organization (WIPO) on the establishment and support of the InnovationandTechnologySupportOffices(ITSOs).UndertheMOA,IPOHLandthe host institutions have agreed to strengthen the institutional capacity of host institutions to conduct patent research, patent drafting, and to increase access of host institutions to patent information. Thus, a twoday Basics on Patent Information Search for the Academe and Business Organizations was held on November 1718, 2010 at the Hotel Elizabeth, Cebu City. Decision makers, representatives from partner institutions, i.e. universities, business chambers, technologyincubators,andrepresentativesfromgovernmentagencieswereamong the participants of said capacity building activity. Experts from international

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organizations such as WIPOSingapore and the International Intellectual Property Institute (IIPI) shared their expertise and experiences on patent information and technologycommercializationduringtheseminar. This pioneering project of the IPOHL with the assistance of the World Intellectual Property Organization (WIPO) purports to support innovation activities bystrengtheninglocalinstitutionalcapacitytoaccesspatentinformationandtheuse of the patent system. With ITSOs services, it is projected that duplication in researchworkwillbeavoidedandfundsallocatedtoresearchanddevelopmentwill be efficiently utilized. Businesses, at the same time, are able to benefit from the project by identifying existing patented technologies that they could license to increaseproductivityandefficiency.TheITSOswillprovidethefollowing: assistanceinsearchingtechnicalinformationusingfreeand/orcommercial patent databases, as well as scientific and technical journal (nonpatent) databases; trainings in searching patent databases for local users, aside from providingtechnologyandcompetitormonitoring; searchforbusinesspartnersandessentialknowhow; marketandcompetitoranalyses; generalinformationonIPvaluation,IPlawsandIPstrategies(information onfilingofpatents,trademarks,etc.);and basic advice on licensing, business plans, IP aspects of product commercializationandraisingfunds(e.g.,governmentfunding). Insteadoftrainingindividualsinpatentskillsandtechnologytransferknow how, which was done in the past 10 years, IPOPHL will now focus on building institutionsthathavehighpotentialforusingtheIPsystemandpromotingittoits constituents.Thus,IPOPHLwillfocusonorganizinganetworkofpatentlibrariesin schools,universities,technologyhubs,businesschambersandthelikesandfunction as a franchiser to providestrategicand collaborative management of the libraries. For this purpose, intensive training on patent skills and technology transfer knowhow will have to be provided in partnership with WIPO. The project will comprise of two components one for private MOASigningbetweenIPOPHL,UniversityofSantoTomas(UST),andtheAyala Foundation,Inc.(AFI)onNovember15,2010ontheestablishmentofITSOs institutions while

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another for public institutions. The differentiation is made in light of the differing priorities, restrictions, and preferences between private and public entities. The initial pilot sites for the component of private institutions will be Manila and Cebu comprising 15 libraries. The project will be implemented in two phases. The first phasewillfocusontrainingbasicskills(fundamentalsonIP,patentinformationand drafting)whilethesecondphasewillfocusonskillsrelatingtotechnologylicensing. The component for public institutions is yet to be designed in collaboration with DOST.

IPOPHL formalized its partnerships with various universities and institutions that have agreed to host the ITSO or patent libraries in two separate signing ceremonies. In Metro Manila, the University of Santo Tomas (UST), and the Ayala Foundation, Inc. (AFI) signed agreements with IPOPHL on the establishment of patentlibrariesheldonNovember2010attheIPOPHLOffice.InCebuCity,four(4) universities,namely:theUniversityofSanCarlos(USC),theUniversityofSanJose Recoletos (USJR), the Cebu Institute of Technology University (CITU), and the University of Cebu (UC), including one business organization, the Cebu Furniture Industries Foundation (CFIF), signed the Memorandum of Agreement (MOA) on November 17, 2010. The establishment of ITSOs or patent libraries will provide Filipinos access to global science and technology information that are legally availablefordevelopinginnovations. Aside from MOAs/MOUs signed with various IP organizations, IPOPHL also signedaDeclarationofCommitmentwiththePhilippineChamberofCommerceand Industry (PCCI) in October 2010 to boost competitiveness of small and medium enterprises(SMEs)throughtheeffectiveuseofthepatentsystem.Acoregroupof IP advocates/specialists shall also be formed within the various local chambers of PCCI in the archipelago to assist SMEs in the creation, registration, and commercializationofIPassetsincludingtheintegrationofIPManagementinSMEs businessstrategy/plan.

PATENTINFORMATIONMANAGEMENTPROGRAM

In line with IPOPHLs goal to aggressively promote the importance of effectivelyutilizingthePhilippinepatentsystem,andDOSTsobjectiveofenhancing the quality of science and technology researches to better serve the Filipinos and Philippineindustries,theneedtoexaminethelocaltrendinpatentingactivitiesboth intermsofprofileoffilersandtechnologicalfieldswasfelt.Inpartnershipwiththe Department of Science & Technology (DOST), IPOPHL conducted a study aimed at measuring the innovative and technological capabilities of the country and identifyingthegapswhererelevantinterventionscanbeinitiatedtobringaboutan IPandtechnologydriveneconomy. A compilation of data involving granted local invention patents, registered utilitymodelsandregisteredindustrialdesignsfrom19982008wasdone.Thestudy showed that for the past 10 years (19982008), only 279 invention patents were

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grantedtoFilipinos,3403utilitymodelsand3780industrialdesignswereregistered. TheresultofthestudyidentifiedthetechnologieswhereFilipinosarefilingpatents, aswellasthetechnologicalfieldswherethecountryneedstofocuson.Thestudy alsoidentifiedthekeyplayersinthePhilippineIPsystem. Moreover, a total of 4,849 patent documents were reviewed and reclassified according to the latest editions of the International Patent Classification (IPC) and Locarno Classification. The reclassification covered patents, utility models, and industrialdesigns.Some6,233fulltextpatentdocumentsofinventionsbyFilipinos inPDFformatwerecollatedandorganizedforthepreparationofebookpatentsas the next step in 2011. In Cebu, the initial Ebook compilation was distributed to universitiesandcolleges,inventorsandSMEs. IPOPHL also provides commercial patent searches to the public. A total of 172 patent search requests were received in 2010 comprising of equivalent, compoundperse,andcomprehensivepatentsearches,37%ofwhichwerepaidfor services.Atotalof177actualpatentsearcheswereconducted.An84%increasein thenumberofsearchrequestswasnoted,althoughtherewasadecreaseof31%in paidforsearchservicescomparedwith2009figures.IPOPHLalsoregularlyconducts PatentSearchandDocumentationSeminarWorkshopsforthepublic.For2010,four (4) workshops were done for professors, students, and researchers from the UniversityofSantoTomas(UST)andUniversityofthePhilippinesinLosBaos(UPLB) aswellasresearchersfromthegovernmentandpharmaceuticalfirms.

BRINGINGIPCLOSERTOSTAKEHOLDERSINTHEREGIONS

Followingtheestablishmentofsix(6)IPSatelliteOffices(IPSOs)in2008and 2009, IPOPHL launched its seventh satellite office in the province of Iloilo on November 2010. Director GeneralRicardo R. Blancaflor, Department of Trade and Industry (DTI) Regional Director Dominic P. Abad, and DTI Provincial Director Wilhelm M. Malones graced the event. Representatives from the Department of ScienceandTechnology,theacademe,businesssectorandotherstakeholderswere also in attendance. The launching of IPSOs in strategic areas in the country makes IP services accessibletoIPstakeholders in the regions. It is a strategy to harness the creativity and innovative skills of IP generators like small and medium enterprises (SMEs), the academe, inventors, and artists, among others. A IPSOLaunchinginIloilolastNovember2010 strong IPinspired culture of

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innovation and creativity brings forth business success which in turn leads to countryside and national development, indicators that raises the barometer of the countrysglobalcompetitiveness.

The accomplishments of the IPSOs are the result of programs and projects undertaken directly by IPOPHL and those that are done jointly with IPOPHLs partners,numberingabout42.TheIPSOshavereceived535trademarkapplications, 35 invention applications, 155 utility model applications, and 47 industrial design applicationsin2010.Fromthesefilings,67patentandtrademarkapplicationswere generated solely from email campaigns while 108 patent filings were generated from 33 State Universities and Colleges (SUCs) and Higher Education Institutions (HEIs)whoattendedthePatentDraftingSeminarsconductedbyIPOPHL. Region VII (Central Visayas), where the Cebu IP Satellite Office is located, contributedthemostnumberoftrademarkapplicationswith119filingsfollowedby RegionXI(Davao)with70filings.Intermsofpatentfilings,RegionVIIagaintopped the list with 45 patents with the National Capital Region (NCR) coming in close secondwith44patentfilings. In addition to the IP filings that were generated, another tangible output fromtheIPFiledOperationsUnit(IPFOU)istheEmbedmentofIPEducationinthe Curriculum of HEIs in the Caraga Region. This was made possible through the collaboration of IPOPHL with the Intellectual Property Advocates of Caraga. With this initiative, IP education will be embedded in courses like engineering laws, business, and information technology in all HEIs in Caraga strating in the first semesterofSY20112012.IPOPHLassistedinidentifyingthetopicsforinclusionin theIPmoduleandprovidedthemwithrelevantcoursematerials. IPOPHL worked closely with the Research and Development Center of Bicol University in establishing their Intellectual Property Rights Unit that will assist the universitys faculty, scientists, and researchers in drafting their patent, trademark, and copyright applications. IPOPHL also conducted a retooling of the DTI frontline personnel resulting in the filing of trademark applications. IPOPHLs strong collaboration with its national and regional institutional partners led to the integrationofIPactivitiesintheplans,programs,andeventsofthelatter. Priorto2008,therewerevariousattemptsbytheWesternVisayasCollegeof Science and Technology (WVCST) to apply for a patent or utility model of the products developed by their faculty and students researchers. Unsuccessful attempts prompted them to invite the Department of Science and Technology (DOST)throughDr.GeorgeM.ColoradoandthelateEngr.LowelM.Gradotogive thefacultyresearchersassistanceonthismatter.Athreedayseminarworkshopon concepts of invention, overview of patent application and drafting patent was conducted followed by a series of seminarworkshops attended by select faculty conductedinvariousvenues.Attendeestotheseseminarworkshops echoedtheir learningtothefacultyinthecollege.

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Atpresent,thecollegehasatotalof6grantedUtilityModelsregistration,8 Utility Model pending applications, and 2 Patent pending applications which are already on the formality stage. These applications has been generated and filed through the concerted effort of IPOPHL Satellite Office (IPSO) and the college. Moreover, their faculty and student researchers excelled fairly in various research contests sponsored by various organizations in regional and national levels. Recently, one of their student researchers placed 3rd in the creative research category on the recently concluded National Inventors Contest and Exhibits (NICE) held on November 2010 at Cebu City. The college was also recognized as the pioneering institution on IP protection in the region. Through the Office of the Director of Research Services Division, member institutions of the Philippine AssociationofStateUniversitiesandColleges(PASUC)inRegionVIandtheWestern VisayasConsortiumonIndustryandEnergyResearchanddevelopment(WVCIERD), Inc. embraced the concept of IP protection through changing the paradigm of conductingresearchanddevelopmentactivities. Aside from the initial training conducted by DOSTTAPI, IPOPHL was instrumental in the series of seminarworkshops the college has participated in. These series of seminarworkshops was dubbed with honing the IP policy of the college, changing the research paradigm, and influencing faculty researchers and research professors. At present, the college is working to be the Innovation Technology Support Office (ITSO) in Region VI. It is hoped that this will lead to realizetheardentdreamofmakingregionVItheIPhubintheVisayasIslandsandbe ofservicetotheinventorsandresearchersintheregion. IPOPHLIPSATELLITE OFFICES INTELLECTUAL PROPERTY *TUGUEGARAO P H I L I P P I N E S INTELLECTUAL PROPERTY BAGUIO P H I L I P P I N E S INTELLECTUAL PROPERTY ANGELES P H I L I P P I N E S INTELLECTUAL PROPERTY LEGASPI P H I L I P P I N E S INTELLECTUAL PROPERTY *TACLOBAN P H I L I P P I N E S INTELLECTUAL PROPERTY ILOILO P H I L I P P I N E S INTELLECTUAL PROPERTY CEBU P H I L I P P I N E S INTELLECTUAL PROPERTY *CAGAYAN P H I L I P P I N E S DEORO INTELLECTUAL PROPERTY DAVAO P H I L I P P I N E S INTELLECTUAL PROPERTY GENSAN P H I L I P P I N E S *TOBELAUNCHED

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Institutionalizecopyrightsupportservices
IPOPHLcreatedanadhocCopyrightSupportServicesUnitin2008toprovide assistance to the creative industries, performers, artists, etc. In 2010, IPOPHL collaboratedwiththeNationalCommissionforCultureandtheArts(NCCA)onthe conduct of three (3) basic copyright seminars entitled Punto de Vista. These seminars identified several common themes that will help shape the direction of future IP work in the arts sector: that there is a need for IPOPHL to continue initiativesthatwouldeducaterelevantstakeholdersoncopyrightandthecollective managementofcopyright,includingworkshopswithstudentartistsandartistsinthe regions;thereisaneedforconsultationswithstakeholdersindraftingguidelinesand policies;andthereisaneedforcopyrightmanagementorganizationswhowilllook aftertheinterestsoftheartists.Moreover,13copyrightlectureswereconductedby IPOPHLforcopyrightownersandusersofcopyrightedworks. In May 2010, a Memorandum of Understanding was signed formally establishingtheAntiBookPiracyCoalition(ABC).TheABCisapartnershipbetween theprivateandgovernmentsectordedicatedtocombatingallformsofbookpiracy inthecountry.ThepartiesincludetheNationalBookDevelopmentBoard(NBDB), Optical Media Board (OMB), Philippine National Police (PNP), National Bureau of Investigation(NBI),BookDevelopmentAssociationofthePhilippines(BDAP),andthe Filipinas Copyright Licensing Society, Inc. (FILCOLS). IPOPHL also assisted in the establishmentoftheFilipinoVisualArtsandDesignRightsOrganization(FILVADRO).

RepresentativesfromFILCOLS,PNP,OMB,NBDB,NBI,andBDAPwith DirectorGeneralRicardoR.BlancaflorandDeputyDirectorGeneralAllan B.GeptyduringtheMOUSigningestablishingtheAntiBookPiracy Coalition(ABC)

Atpresent,thereisnocopyrightbureauinIPOandcopyrightconcernsare dealt with on an ad hoc basis. Senate Bill No. 2487 (An Act Amending Certain Provisions of Republic Act No. 8293 Entitled An Act Prescribing the Intellectual Property Code and Establishing the Intellectual Property Office, Providing for its

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PowersandFunctionsandforOtherPurposes)wasfiledinSeptember2010seeksto create a Bureau of Copyright to focus on the literary and artistic works and its derivativeswiththeendinviewofensuringthatanydisputethatmayariserelated tothesamemaybeswiftlyaddressed.Further,inviewofthechangingtimes,i.e. the evolution of contracts, leap in the electronic age and information technology, theIPCodeislikewiseamendedtoadjusttothesechanges. So far, numerous activities involving various areas of copyright law were conducted in the past years, including a study sponsored by WIPO involving copyrights in the Philippines but there is yet no comprehensive roadmap for the copyright system that deals with and considers the different copyrightrelated or copyrightbasedindustries.Againonesizedoesnotfitsall,thusthereisaneedto carefully map the Aligned with the policy of using IP as a tool for national development, the copyright system should likewise be designed to bring about economicandsocioculturaldevelopment.Thus,thereisaneedtocreateastrategic roadmap and direction for the copyright system. For this purpose, a national strategyisneededtobecraftedwiththeinvolvementofdifferentstakeholdersfrom varioussectorsandindustrieswherecopyrightisrelevant. IPOPHLandWIPO,incooperationwiththeCulturalCenterofthePhilippines (CCP), the Filipinas Copyright Licensing Society (FILCOLS), and the National Book DevelopmentBoard(NBDB)organizedandconductedaWorkshoponManagement of Intellectual Property in the Book Publishing Industry in January 2010. The workshop was designed to provide practical knowledge for stakeholders of the publishingindustrytobenefitfromtheirintellectualpropertyaseconomicassets. International and local speakers presented business models and shared their practicesconcerningroyaltiesandotherpaymentsaswellaspresentcurrenttrends inonlinepublishinganddistribution.Aforumonemergingtrendsinthebusiness rounded up the 2day workshop. Further, a WIPO Expert Mission on Collective Management Organizations was held on August 2010 to consult with the existing CMOs in the Philippines and conduct a detailed examination of the current copyright and related rights protection system and the operation of the existing CMOsinthecountry.Themissionexaminedavailableoptionsandrecommended specificmeasurestoimprovethecollectivemanagementsystemssoastomakeit effective and to ensure that it meets the needs and specific requirements of the Philippines. IPOPHL also entered in a Memorandum of Understanding with the IntellectualPropertyAssociationofthePhilippines(IPAP)toundertakeastudyon theFairUseundertheCopyrightLawonOctober2010.

Increase the level of appreciation of, respect for, andutilizationofIP

Aggressive promotion on IP ensued targeting the academe, SMEs, RDIs, businesses, and other nonIP organizations. They were educated in the basics of

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intellectual property through 64 Basic IP Orientation Seminars, 22 L.E.A.P. IP Seminars(LearnbeEmpoweredAdoptandProfitfromIP),and23PatentDrafting Seminars. IPOPHL also joined other government agencies in making use of technologyandsocialnetworkingwebsitestobringthegovernmentandIPcloserto the public. It introduced a new and more interactive website and activated its FacebookandTwitterpageswhereupdatesonIPandannouncementsonIPevents are provided to the public. IPOPHL also participated in 13 major trade fairs and exhibitstobringIPclosertoSMEs,artistsandinventors. IncelebrationoftheWorldBookandCopyrightDay,IPOPHLpartneredwith theNationalBookDevelopmentBoard(NBDB)andorganizedaBinondoLiteraryand Food Wok in April 2010. Officials of the NBDB, members of the IPOPHL Executive Committee, members of the media, and writers took a tour of Binondo, the PhilippinesChinatown,toappreciateitsheritage,arts,andculture.Also,IPOPHL,in partnership with WIPO, organized a Regional Workshop on Copyright DocumentationSystemsonApril2010.Theworkshopbroughttogetherparticipants from countries in the AsiaPacific region to discuss and increase awareness on copyrightregistrationanddepositsystemsintheAsiaPacificregion,toprovideways of securing and identifying contents in the digital environment, and to acquaint participantsonhowcopyrightworksarepreservedinthedigitalenvironment. As part of IPOPHLs tradition, the Intellectual Property Rights Week is commemorated with a monthlong celebration during October. For 2010, IPOPHL opened its doors to entrepreneurs to display and sell their products inside the IPOPHLgrounds.SMEsandbusinessesfromthefollowingindustriesparticipatedin the activity: food, garment, beauty and fashion, and books and other published materials. A Special Franchising Seminar 101 was also conducted as part of the event. Memoranda of Understanding (MOU) between IPOPHL and various IP organizations were forged in October 2010 for the conduct of Studies/Research Projects in 2011 on relevant and emerging issues on intellectual property. Specifically,thefollowingstudieswillbeconducted: StudyonGeographicalIndicationstobeconductedbyIPAP; StudyonCertificationMarksbyIPCoalition; StudiesonNonTraditionalMarksandLicensingbyLESP;and StudiesonNovelty,BolarException,andMechanismsforLoweringthe PricesofMedicinesinotherCountriesbyIPPRO. Superbrands, the only international Award giving body on marketing/branding in the Philippines, entered into a partnership with IPOPHL specifically the Bureau of Trademarks to deliver the second Superbrands Academy lastJuly2010.AccordingtotheChiefExecutiveOfficerofSuperbrands,itwillnowbe a requirement for brands to be registered with IPOPHL before becoming a Superbrands.

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 BasicOrientationSeminars Provinces TuguegaraoCity GeneralSantosCity Benguet ButuanCity CebuCity Cagayan Academe/Universities UniversityofSouthernMindanao BenguetStateUniversity AklanStateUniversity MarianoMarcosStateUniversity IfugaoStateUniversity QuirinoStateUniversity AbraStateInstituteofScience&Technology BicolUniversity CatanduanesStateColleges CentralLuzonStateUniversity DavaodelNorteColleges AteneodeDavaoUniversity DLSUSt.BenildeSchoolofDesignandArts PUPLopezQuezon UPIECEP MiriamCollege PhilippineScienceCentrum(PSC) TUPManila CollegeofEngineeringPolytechnicUniversityof thePhilippines Agencies/Organizations LaUnionFoundation DTIBohol DOSTRegion2 DTIRegion12 AssociationofNegrosProducers HARRDEC(HighlandAgriculture&Research& DevelopmentConsortium)BSU DOSTCagayanValley DTIKoronadal DTICamarinesSur DTIRIITuguegaraoCity DTIIloiloCity SPAMAST B.R.A.I.N.SInstitutefortheHighlyTalented (Bright) BureauofCustoms(BOC) FilipinoInventorsSociety(FIS) DOSTPEZAOpenTechnologyBusinessIncubator DOST

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DTIArgaoCebu ProvincialCooperative,Livelihood& EntrepreneurialDevelopmentOffice Others Cebunext"The2010FurnitureExhibition NorthernLuzonClusterInventionContest& Exhibition VisayasIslandInventionContest&Exhibition 6thNorthernLuzonClusterScience& TechnologyFair PatentDraftingSeminars Provinces ButuanCity TuguegaraoCity Academe/Universities CebuTechnologicalUniversity BicolUniversity NuevaVizcayaStateUniversity AbraStateInstituteofScience&Technology NotreDameofMarbelUniversity DonMarianoMarcosMemorialStateUniversity UniversityofAntique IfugaoStateUniversity BenguetStateUniversity UniversityofSouthernMindanao WesternVisayasCollegeofScience& Technology Agenices/Organizations HARRDEC(HighlandAgriculture&Research& DevelopmentConsortium)BSU L.E.A.P.IPSeminars TheWorldofPatents:AnIntroductiontoInventionPatents EarnfromYourInnovationsandNovelDesigns:AnIntroductiontoUtilityModels andDesignPatents DistinguishingYourBusinessThroughTrademarks:AnIntroductiontoTrademarks LiteraryandArtisticWorks:YourValuableCreationsAnIntroductiontoCopyright MajorTradeFairsandExhibits 43rdAnnualConventionoftheAssociationofPhilippineMedicalColleges Foundation,Inc.(APMC)Exhibit 1stTechnoPartneringForum 9thPhilippineFoodExpo ManilaNow201014thPhilippineInternationalFurnitureShow CebuNextCebuInternationalFurnitureandFurnishingExhibition WomensNegosyoSummit ManilaF.A.M.E.InternationalShow 7thInternationalFoodExhibition NegosyoSeminarNEGOSEM Em:POWERBusinessConvergenceExhibit NationalInventionContestandExhibits(NICE)2010
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Lead the advocacy for legal and policy infrastructures to address emerging national and globaldemandsoftheIPsystem
TherearevariousdevelopmentpartnersthatIPOdealswithtobenefitfrom variouscollaborativeandjointendeavorsinvolvingdifferentareasoftheIPsystem from patents, patent information, copyright, trademarks, designs and other IP related areas. These may be on a bilateral, regional, or multilateral capacity and eachhaveitsownworkplanscomprisingofactivities,events,andprojects. In particular, IPOPHL deals with WIPOs various bureaus and divisions (like Asia Pacific Bureau, Creative Industries Division, Infrastructure Modernization Division, Global IP Infrastructures, etc.), the European Patent Office (EPO), United States Patents and Trademarks Office (USPTO) and Japan Patent Office (JPO) bilaterallyaswellasinconjunctionwithotherASEANmemberssuchasinthecaseof ECAPIIIandotherAWGIPCrelatedprojectslikethoserelatingtotheAANZFTA.

ASEANWORKINGGROUPONINTELLECTUALPROPERTYCOOPERATION

ThePhilippinesisamemberoftheAWGIPC,abodyestablishedpursuantto the ASEAN Framework Agreement on Intellectual Property Cooperation signed by ASEAN Member Countries in 1995. The Philippines took over from Malaysia the ChairoftheAWGIPCin2009.AsChairoftheAWGIPC,thePhilippinessteeredthe groupinpreparingforitsStrategicActionPlan20112015throughthe33rdAWGIPC Meeting and AWGIPC Strategic Planning Session. IPO facilitated the sharing of knowledgeofpatentexpertsfromtheASEANIPOfficesonthetechnical,procedural, and structural requirements for the effective ASPEC implementation through the Patent Directors Meeting under the ASEAN Patent Examination Cooperation Program (ASPEC). IPOPHL provided further assistance to the AWGIPC by conceptualizing programs and projects and prepared recommendations for the ASEANIPRActionPlan20112015.

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RepresentativesofASEANWorkingGrouponIPCooperation(AWGIPC)during theAWGIPCStrategicPlanningSessioninAugust2010attheNewWorld HotelinMakatiCity

ASEANSIPOMEMORANDUMOFUNDERSTANDING

IPOPHL is also a party to the cooperative agreement between the ASEAN countriesandChinathroughitsIPOfficethroughtheASEANSIPOMOU.TheMOU seeks to strengthen the strategic partnership and cooperation on intellectual property between ASEAN and China. The ASEAN Trade Ministers and the SIPO Commissionersignediton21December2009inThailand.TheMOUwillbeeffective for5years,andwillbeautomaticallyrenewedforsuccessive5yearperiodsunless terminatedbyoneoftheparties.IPOfficialsfromASEANandChinadiscussedfuture cooperation activities to be implemented under the MOU, with a special focus on thefollowingareas: establishmentofamechanismforaperiodicMeetingofHeadsofIPOffices; coordination on issues related to the protection of intellectual property rights; developments in the field of IP including best practices relating to examination,qualityassurance,examinerstraining,andotherrelatedissues; development of IP automation and databases; and major issues relating to the international IP systems that are under deliberation at WIPO and other internationalfora

INTERNATIONALIPAGENDA

IPOPHL is also preparing for the accession to Madrid Protocol and Hague Agreement. The IPOPHL will partner with WIPO and the Department of Foreign Affairs(DFA)inaccedingtotheseagreements.Aseriesofpublicconsultationsand
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public awareness actions will be undertaken with different stakeholders to ensure the acceptability of accession and in order to maximize the benefits from the implementation of the agreements. IPOPHL shall also prepare for the additional workorchangesinworkprocessesinordertoaccommodatethenewfilingoptions fortrademarkanddesignregistration. Protectingtraditionalknowledge,traditionalculturalexpressions,andgenetic resources (TK TCE GR F) as part of the countrys intellectual creation and national heritage is a priority. Owing to the fact that the Philippines is a megadiverse environment with numerous indigenous cultures and traditions, the country has becomeapowerfulresourceforpotentialIPswithscientistsandresearchers,both local and foreign, scouting for useful knowledge and materials to develop into solutions and products capable of obtaining great commercial value. Clearly, it is crucialforIPOtoworkwithotherGovernmentagenciestoprotectandpreventthe misappropriation and unfettered exploitation of its TK TCE GR F with little or no benefit to the Philippines. And with the neighboring countries already working towardsidentifying,documenting,andclaimingtheirTKTCEGRF,itisratherurgent thatthePhilippineslikewisecommenceitsinitiativesonthesame.

IMPLEMENTINGRULESANDREGULATIONSONPATENTS

Aftermorethantenyearsofimplementation,theexistingIRRforpatentsis subjectedtoextensivereviewandgeneraloverhaulinordertorectifyerrors,clarify vague provisions and, more importantly, to find ways to streamline procedures, in anticipationoftheautomationproject,IIPMS,whichrequiresthereengineeringof work processes based on past experiences, lessons learned through the years and best practices. Numerous internal meetings were conducted with the patent examiners to discuss the proposed draft revisions. Consultative meetings with externalstakeholders(whichcomprisethepatentagents,lawyers,andowners)were alsoconductedtoobtainfeedbackontheproposeddraftandgetadditionalinputs onmatterstobeincorporatedintotherules.Also,althoughtheimplementingrules ofRA9502havebeenissued;littleguidanceisprovidedtothepatentexaminersin examiningthepatentapplicationofdrugsandmedicinesunderthenewlaw.Thus, guidelinesarebeingdraftedintothemanualofpatentexaminersforsaidpurpose. Sofar,severalmeetingsanddiscussionshavetakenplaceamongpatentexaminers intheBureauofPatentonthesubjectmatter.Apartialdraftofthemanualciting severalsourcesandjurisprudence,amongothers,hasalsoprepared.

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ORGANIZATIONALGOALS

Develop and maintain a highly motivated, competent, and cohesive workforce committed to serve with professionalism, transparency, and integrity
In its objective of increasing the skills of its patent examiners, IPOPHL conducted a weekly training on substantive examination for utility model and industrialdesignexaminersduetotheincreaseinPCTapplicationsreceivedandthe limited number of examiners in the mechanical, electrical, and civil engineering fields. IPOPHL also welcomed the Korea Internet Volunteers (KIV) from the Korea Agency for Digital Opportunity and Promotion (KADOP) for the conduct of the KIV Programs KoreaPhilippines Culture Exchange on JulyAugust 2010. The program aimedtoprovidesupportfordomesticandinternationalrelationsthroughavariety ofprogramstobridgetheglobaldigitaldivide;andtofacilitateaculturalexchange between the Philippines and South Korea. The visit included seminars on South Koreas food and culture and training on JAVA Programming for IT personnel and otherinterestedemployees. IPOPHLs Management Committee attended Bridging Leadership Courses in JuneJuly 2010. The course is an intensive leadership journey that aimed to build ownershipofIPOs socialandeconomicoutcomesamongitsmanagementandthe differentstakeholders,resultinginmobilizingsupportforinnovativeandsustainable programs. A total of 15 Executive Committee membersand25ManagementCommittee(Division Heads/OICs) members attended this program. The 2ndsessionofthisprogramwasconductedwiththe participationofIPOPHLsstakeholders.Asaresult, IPOPHL came up with quick wins that would improve more its service delivery and cater to its clients. In addition to this, IPOPHL also sent a total of 168 employees to local and foreignsponsored seminars and trainings to increase their knowledge inIPandenhancetheiradministrativeandtechnical skills (i.e. IT, records management, planning and AvolunteerfromtheKADOPgiving alectureonJAVAProgramming monitoring, etc.). IPOPHL also sent its Human lastAugust2010aspartofthe Resource Development personnel and some key KoreaPhilippinesCultureExchange personnel to attend a 2day intensive training on Program

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theconductofaTrainingNeedsAnalysis(TNA).Amajoroutputofthisprogramis fortheHRDDandotherkeymemberstoeffectivelyimplementaTNAprocessthat willgathernecessarydataandextractinformationtoproperlyidentifytrainingand developmental programs that fit each official and employee in the Office. The programwasfurtheraimedto: UnderstandtheTNAframeworkanditsaccompanyingconceptsandtools acquire the knowledge, skills, tools, and competencies necessary for facilitatingtheTNAprocess; Appreciate the importance of conducting a training and organizational needsanalysisthatmakepossibleprogramswhichwillcontributetothe developmentofIPOshumanresources; Systematically analyze training and organizational needs of IPO and formulate appropriate methods and instruments that will generate the requiredinformation;and BeabletoapplylearninggainedandconfidentlyconductTNAforvarious individualswithintheorganization.

Provide a conducive work environment that supports professional growth and promotes worklifebalance

IPOPHLcreatedaTravelandAssistanceUnit(TAU)toassistemployeessent to international trainings on the preparation of travel documents and provide orientation on the important details they need to know about the sponsor organizationandthecountrytheywillbevisiting.Inordertohirethebestqualified applicants that embodies the values of an IPOPHL employee, the office Merit SelectionandPromotionPlan(MSPP)wasreviewedandnecessarilyrevisedtomeet the demands of employees and address gaps in its implementing guidelines and procedures. A total of 14 employees were promoted and hired in the first half of 2010.Byyearend,51plantillapositionsremainedvacantoutofthe 282plantilla positionsapprovedbytheDepartmentofBudgetandManagement(DBM)underthe Rationalization Plan [excluding the 17 CoTerminus with the Incumbent (CTI) positions].Further,six(6)vacantthirdlevelpositionswerefilledin2010. The Program on Awards and Incentives for Excellence (PRAISE) Committee launched the IPO PRAISE Awards on December 2010. Award categories were identified along with their respective criteria and qualifications. Awarding is scheduledforY2011.48loyaltyAwardeeswerealsorecognizedat2separateevents heldinJuneandDecember2010.

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IPOPHL also regrouped the members of its Chorale as its representative in the DTI Chorale Competition held in December 2010 where the IPOPHL Chorale bagged the 1st runnerup position. The chorale is oneoftheofficesholistic life enriching projects to ensurethatitsemployees enjoy a more balanced worklife and to enrich their knowledge and experience of the arts IPOPHLsChoraleGroupsingingChristmasHymnsduringtheDTI andculture. ChoraleCompetitiononDecember2010atthePTTC.

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FINANCIALREPORT

The following presents the Intellectual Property Office of the Philippines financialperformanceforCY2010.

SOURCESOFFUNDS

Starting CY 2006, IP Philippines had ceased receiving subsidy or funds from theGeneralAppropriationsoftheGovernment.Thebudgetaryrequirementsforthe implementation of the Offices programs, projects, and activities are sourced from theagencysrevenuecollectionsasauthorizedbylaw. Therequiredfundsaresourcedfromthecollectionsofpatents&trademarks related fees, legal fees, documentation, information, technology transfer fees, and miscellaneous income. In addition to the above sources of funds, the interest incomefromtheInvestmentofIPOPHLsReserveFundsisanothersourceofincome tosupportdifferentactivitiesoftheagency.Thechartbelowshowstherelationship of the sources of funds based on the collection for CY2010. The bulk of the collections come from the Patents & Trademarks, which provide us 57% and 33%, respectively.Theinterestincomealsocontributesaconsiderableamountofabout 7%ofthetotalOfficesIncome/Collectionsfortheyear.

Figure28
SOURCESOFFUNDS(inmillions)
Patents&other relatedfees,214.95, 58% Mediationfees,0.09 ,0% Miscellaneous Income,0.97,0% DITTBResearch& Trainingfees,1.53, 0% IPSOPatent&TM fees,1.58,0% Legal&otherrelated fees,6.69,2% InterestIncome, 27.38,7% Trademarks&other relatedfees,124.00, 33%

SourceofFunds PatentsandOtherRelatedFees TrademarksRelatedFees LegalFeesandOtherRelatedFees IPSOPatents&TrademarksFees DITTB/TrainingFees MiscellaneousFees CY2010 214.95 124.01 6.69 1.60 1.50 0.97 CY2009 186.90 113.49 6.45 0.83 2.51 1.02

Inc/(Dec)in % 15.01% 9.27% 3.72% 92.77% 40.24% 6.73%

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MediationFees TotalIncomefromOperation Add:InterestIncome TotalIncome

0.09 349.81 27.38 377.19

311.20 30.47 341.69

7.44% 10.14% 7.25%

ThetableaboveshowsthecomparativerevenuecollectionsfortheCY2010 &2009.Thetotalincomefromoperationfor2010amountedtoPhp349.81M,upby 7.44% compared to the previous year. However, the interest income for 2010 decreasedby10.14%duetothelowmarketinterestratesofgovernmentsecurities. Thesignificantfactorsinthegrowthanddeclineofrevenueareasfollows: Patents totalnumberofapplicationsreceivedforCY2010was4,852or12% higherthanCY2009,applicationswerebrokendownpercategoryas follows: Invention3,391applications UtilityModel614applications IndustrialDesign847applications collections of annuities for CY 2010 was higher by 13.10% than the collectionsforCY2009 Trademarks total number of applications received for CY 2010 was 16,827 as comparedto15,011forCY2009,therewasanincreaseof12% total number of registered trademarks for CY 2010 & 2009 were 12,028&11,181respectivelyupby8% totalnumberofrenewalsforCY2010decreasedby3.91% The two main sources of IPOPHLs revenue are the Patent and Trademark Fees, which contribute 57% and 33%, respectively for the CY 2010. Below is the detaileddiscussionofthePatentandTrademarkRevenue.

Patent

Theincome/collectionsfrompatentoperationsconsistofannuities(oldlaw RA8293&newlawRA165)andapplicationfeesforfiling,search,andexamination. The chart illustrates that the collections on AnnuitiesRA 8293 & RA165 are the major sources of patents income, which shows 38% & 29% accordingly. This is followed by the collections on Filing feesInvention which contributes 28% of the totalPatentRevenue.

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Figure29

PatentRevenueperFeeType CY2010(inmillions)
FILINGFEES UM/ID,3.46,2% ANNUITY8293, 82.55,37% INVENTION/UM/ID RELATEDFEES,5.60 ,3%

ANNUITYRA165, 61.92,29%

FILINGFEES INVENTION,61.44, 29%

ComparativePatentRevenueforCY2010&2009

PatentincomeforCY2010ishigherby15.01%orPhp28.05Mascomparedto the previous year. As shown in the chart below, all patent revenue per fee type increases. The Collections of annuities under RA 8293 & RA 165 contribute an increaseof6.86%&22.66%,accordinglyoratotalofPhp11.43M.Anotherreason for the huge increase of patent income can be attributed to the increase in the collectionoffilingfeesinventionof19.95%orPhp10.22M.

Figure30
ComparativePatentRevenueCY2010&2009(inMillions)
90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 FILINGFEES INV/UM/ID FILINGFEES ANNUITYRA ANNUITYRA UM/ID RELATEDFEES INVENTION 165 8293 2010 2009 82.55 61.44 51.22 61.92 50.48 77.25

3.46 2.73

5.60 5.22

ApplicationsReceived

ApplicationsreceivedforCY2010is4,852or12%higherthanCY2009.The chartandtablebelowshowthedetailsofpatentsapplicationreceived.

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Figure31
ApplicationsReceived perCategoryCY2010
INDUSTRIALDESIGN 17%

UTILITYMODEL 13%

INVENTION 70%

ApplicationsReceivedfor2010visvis2009

The table shows the applications received for invention, industrial design, and utility model both foreign and local filings. Except for the filings of local inventionandindustrialdesign,allapplicationsreceivedincreases.

Typeof Patents Invention Industrial Design Utility Model Total Total Increase Foreign 251 415 35 701 CY2010 Local PCT Total Foreign 167 2973 3391 226 432 579 1178 847 320 48 594 CY2009 Local PCT 172 2599 458 Total 2997 804 544 4345 %ofInc(Dec) Foreign Local PCT 11.06% 2% 14.35% 29.68% 27.08% 18.01% 6% 17% 5% 11.66%

614 2973 4852

496 1126 2599 12%

Trademark

TrademarkCollectionsaresourcedfromfilingfees,publicationfees,issuance fees,declarationofactualuse,maintenancefeesunderRA166,andotherTMrelated fees. The chart shows that filing fees, DAU, Issuance Related Fees and Publication Related Fees are the source of major income by which they contribute 32%, 21%, 17%&11%,respectively.

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Figure32

TrademarkRevenueperFeeType CY2010(inMillions)
OtherTMRelated Fees,2.10,2% Postregistration relatedfees,2.85, 2% FilingFees 32

Renewal,3.10,3% ExaminationRelated Fees,7.58,6% RA166,7.95,6%

DAU,25.89,21%

PublicationRelated Fees,13.66,11%

IssuanceRelatedFees, 20.91,17%

ComparativeTrademarkRevenueforCY2010&2009

Trademarks Revenue for CY 2010 increases by 9.27% or Php10.52M compared to the previous year. The increase of revenue can be attributed to the collectionsofExaminationRelatedFees,DAU,andFilingFees,withariseof55.66%, 41.15%&12.82%,respectively,ascomparedtoCY2009.However,asshowninthe chart there are other types of fees which decline, such as Renewal, RA 166, and IssuanceRelatedFees. Below are the graphs and table, which show the detailed Trademark Income/Collections for CY2010 visvis CY2009, and the detailed number of new applicationsreceivedbothforeignandlocal.

Figure33
ComparativeTrademarkRevenue CY2010&2009(inMillions)

40.00

30.00

20.00

10.00

FilingFees 2010 2009 39.98 35.43 Issuance Publication RelatedFees RelatedFees 20.91 21.80 13.66 12.67 DAU 25.89 18.34 RA166 7.95 10.64 Examination RelatedFees 7.58 4.87 Renewal 3.10 5.07

Post OtherTM registration RelatedFees relatedfees 2.10 2.37 2.85 2.30

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ApplicationsReceived

TrademarkstotalapplicationreceivedforCY2010is16,827upby12%.

Figure34

ApplicationsReceived CY2010

Foreign 46%

Local 54%

ApplicationsReceivedfor2010visvis2009
Type Foreign Local Total 2010 7076 9751 16827 2009 6135 8874 15011 Inc(Dec) Volume 941 877 1816 % 15% 10% 12%

Theabovetableshowstheapplicationsreceivedfrombothforeignandlocal filings.Fiftyfourpercent(54%)ofthetotalapplicationsreceivedinCY2010comes fromlocalfilingsandforeignfilingscontributetheremainingfortysixpercent(46%).

UTILIZATIONOFFUNDS

TotalexpensesincurredintheimplementationofprogramsandprojectsofIP PhilippinesforCY2010totaledtoPhp230.57million.IPPhilippinesexpendituresare classified into three. The Personal Services (PS), the Maintenance and Other OperatingExpenses(MOOE),andCapitalOutlay(CO).

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Figure35

UtilizationofFunds CY2010(inMillions)
MOOE,108.52, 34% CapitalOutlay, 2.32,1%

Personal Services, 206.58,65%

Thegraphshowstherelationshipamongtheexpendituresperclassification. The huge part is the utilization for Personal Services amounting to Php206.58M, followedbyMOOE,Php108.52MandCapitalOutlay,Php2.32M.

PersonalServices

The personal services include salaries, other personnel benefits, terminal leave benefits, PERA & other allowances, RATA, 13th Month Pay, Statutory Obligations, and Overtime Pay. PERA & other allowances consist of the personnel economic relief allowance, BAC honorarium, clothing allowance, etc. RATA is the representation & transportation allowance of directors/asst. directors, and division chiefs/officer in charge. Statutory Obligations are government share for Pagibig, Philhealth, GSIS, and ECC contribution. Other personnel benefits include monetizationofleavecredits,grantofloyaltyaward,andCNAbenefits.
Figure36
PersonalServices CY2010(inMillions)
StatutoryObligations, 11.37,6% TerminalLeave Benefits,0.83,0% 13thMonthPay,8.41 ,4%

RATA,3.92,2% OvertimePay,0.96, 0%

PERA&Other allowances,6.92,3%

Salaries,82.97,40%

OtherPersonnel Benefits,91.20,45%

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MaintenanceandOtherOperatingExpense

MaintenanceandOtherOperatingExpenses(MOOE),includesbutnotlimited to rent, supplies, traveling expenses, training expenses, utilities, and other professional services. Below is the graph that shows the relationship among the MOOEexpenditures.

Figure37

MOOECY2010(inMillions)

Repairsand Maintenance,1.82, 2% OtherExpenditures, 8.39,8%

Communication Expenses,2.68,2%

Traveling,2.32,2% SuppliesandMaterials ,5.75,5% Utilities,10.13,9% TrainingExpenses, 4.04,4%

RentalExpense,43.78 ,41% ProfessionalFees, 29.61,27%

CapitalOutlay

Capital Outlay also known as CAPEX or capital expenditures. This refers to purchase of property plant and equipment. For the CY 2010, IP Philippines only spendPhp2.3millioninCAPEX,becausethereisnohugepurchaseofequipmentdue totheplannedtransferofofficebuilding.

Figure38

CapitalOutlay CY2010
ITEquipment& Software, 1,772,228.31, 77% Books,56,592.26 ,2% OfficeEquipment, 356,281.00,15% Furnitureand Fixtures, 3,789.60,0%

OtherAssets, 135,650.00,6%

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NEXTSTEPS

IPOPHLsROADMAPFOR2011
For2011,IPOPHLidentifiedthedeliverablesforeachoftheeight(8)strategicgoals, the attainment of which would contribute to the realization of an Intellectual Propertyconscious Philippines in a demystified, developmentoriented, and democratizedIPsystemby2020.

REGULATORYGOALS StrategicGoal1: Deliver quality and timely patents, trademarks, and other registrations A developmentoriented and globally competitive IP registration system which raises the bar of trademark, design, UM and patent examination & administrationprocessestosatisfyunmetenduserexpectations Patent registration process is streamlined and clarified with the amended implementingrulesandregulations(IRR)ofpatentregistrationprovisionsof theIPCode Significant improvement in the consistency of patent examiners decisions thatisconsistentwithandalignedtodeclaredIPOPHLpatentpolicies Designregistrationsaregenerallygrantedin5daysandatthesamecostas copyrightnotifications/registrations(DESIGNIN5DAYS) Utility Model registrations are generally granted in 2 months (UM IN 2 MONTHS) Effective management of knowledge workers in the Bureau of Patents in preparationfortheimplementationofIIPMS A rationalized patent examination organization is in place to expand the bureauscapacitytomeetglobalpatentexaminationneeds Speedydisposition ofapplicationspendingappealofexaminersdecision or withthirdpartyobservations Patent examination skills are enhanced through a continuous learning mechanismforpatentexaminers Significant improvement in the quality and consistency of trademark examinersdecisionsthatisconsistentwithandalignedtodeclaredIPOPHL trademarkpolicies Furtherreductionofturnaroundtime(timeoffilingtoregistration,withthe exceptionofOppositions) EffectivemanagementofknowledgeworkersintheBureauofTrademarksin preparationfortheimplementationoftheIIPMS An efficient and transparent IP registration system using internationally acceptedITsystemsspeciallydesignedforIPoffices MoreclientfriendlyelectronicandwebbasedIPregistrationrelatedservices areintroducedandpilottested

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An integrated IP administration and search system that is efficient and transparent,operatinginasecureandhighlyreliableICTinfrastructure IP information will be conveniently accessible by the public through an IP eData Bank or an electronic centralized depositary containing various IP databases(TMregistry,UM/IDregistry,Inventionsregistry,IPCasesregistry) IPOPHLsonsitecustomerserviceisenhancedbyaSinglePointofContactfor ClientServiceinIPOPHL(SPOCCSI) IPOPHLs ability to respond to stakeholders and clients needs is heightened byaneffectiveandinstitutionalizedfeedbackmechanism

StrategicGoal2:

Providespeedy,quality,andeffectivelegalremediesandbe theforumofchoiceforIPdisputeresolution

Establishing an effective multidoor conflict resolution structure and justice systemforIPOPHL Moreeffectivelegalremediesareprovidedthroughstreamlinedprocedures andrevisedrulesforInterPartesCase(IPC) Casebacklogiseradicatedthrougheffectivedisposalofagingcases InnovationsforachievinggreatertransparencyinIPlitigationisexplored CompetencyofIPOPHLlawyersisraisedthroughcontinuouslegaleducation SignificantimprovementinthequalityandconsistencyofBLAdecisionsthat isconsistentwithandalignedtodeclaredIPOPHLpolicies The case flow of IPC cases in IPOPHL is better managed with a tighter case monitoringsystem Execution of IPOPHL judgments and orders are implemented with the assistanceofLawenforcementsagencies Making all decisions of IP cases, whether in IPOPHL or the courts, publicly accessiblefostersgreatertransparencyandconsistency Integrityofcaserecordsandevidenceisgreatlyimprovedbyaninstitutional records&evidencestoragemanagementsystem DEVELOPMENTALGOALS StrategicGoal3: Provide IPrelated business development and technology transferservices Establishingnewdeliverymechanismsandstakeholderplatformstoincrease the use of the IP system by sectors that have never been served before by IPOPHL Local IPs are supported by IPOPHL through various business development andcommercializationassistanceprograms InstitutionalresultsarederivedfromoperationofIPSOs Use of trademark to create value for OTOP businesses is increased through partnershipwithDTIRODG Institutionswithhighincidenceof,orpotentialfor,technologicalinnovation areequippedwithInnovationandTechnologySupportOffices(orITSOPatent Libraries) which are linked as a network with other technology information centers

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Technology and innovation support policies and strategies of IPOPHL are enhancedbyaninstitutionalizedpatentinformationunit TheinstitutionalcapacityofIPOPHLisenhancedbyinternationalpartnerships andbilateralcooperationwithvariousinstitutionsorgovernmentagencies The service delivery mechanisms of IPOPHL are enhanced by domestic partnershipswithvariousinstitutionsorgovernmentagencies

StrategicGoal4: Institutionalizecopyrightsupportservices Establishingnewdeliverymechanismsandstakeholderplatformstoincrease the use of the IP system by sectors that have never been served before by IPOPHL A copyright registry system is in place that will effectively serve queries on registeredcopyrights

StrategicGoal5:

Increase the level of appreciation of, respect for, and utilizationofIP

InstitutionalizedinvolvementofIPOPHLinkeynationalprogramsand initiativesthatwillbringabouteconomic,technological,andsociocultural development EmpoweringMSMEsthroughincreasedawarenessanduseoftheIPsystem HeightenedawarenessonIPamonglocalgovernmentofficialsthrough collaborationsandIPenforcementundertakings Successfulconsumeralizationoftheconceptofintellectualpropertyasa businessandeconomictool,startingfromMetroManilaand1majorcityin Luzon,VisayasandMindanao HeightenedpublicawarenessonIPOPHLactivitiesandinitiativesthrough publicrelations,socialmediaandotherchannels AnappropriatebrandimageortradedressforIPOPHLisdeveloped throughconsistentpracticeandusage AllmembersofIPOPHLorganizationarewellinformedofprograms,events andinitiativesthrougheffectiveinternalcommunications InternetsocialnetworksareeffectivelyusedtopromotetheuseoftheIP systemandservicesofIPOPHL

StrategicGoal6:

Lead the advocacy for legal and policy infrastructures to address emerging national and global demands of the IP system

Strengthening the legal and policy support units of IPOPHL through institutionalizedmechanismsandstructures Proposed legislations to enhance the IP system and strengthen IPOPHL in fulfillingitsmandatearesuccessfullyintroduced AmoreaccessibleandaffordableIPregistrationsystemismadeavailableto Filipinos by acceding to treaties that allow the Philippines to participate in globalIPinfrastructures

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A 3D IP policy framework and implementation strategy for IPOPHL is formalizedandadoptedinordertoguideallIPOPHLactionsanddecisions Increased role of IPOPHL as a member of the ASEAN Working Group on IntellectualPropertyCooperation(AWGIPC)withtheendinviewofaligning Philippine domestic initiatives with international IP discussions and cooperation ORGANIZATIONALGOALS StrategicGoal7: Develop and maintain a highly motivated, competent, and cohesiveworkforcecommittedtoservewithprofessionalism, transparency,andintegrity The general welfare of IPOPHL employees in terms of professional growth andworklifebalanceissecured. Increased usage of the IT systems among IPOPHL employees results from a continuingITliteracyprogram An HR Integrated System, which includes an Attendance and Leave MonitoringintegratedwithPayrollSystem,isinplace Anorganizationwidehumanresourcetrainingandcompetencydevelopment structureisinplacetomakeIPOPHLaninnovativeandlearningorganization StrategicGoal8: Provide a conducive work environment that supports professionalgrowthandpromotesworklifebalance Creating an enduser centric and marketoriented balanced scorecard for IPOPHLthrougheffectiveinstitutionalplanning,performancemonitoringand benchmarking AmodernizedIPOPHLofficecomparabletothebestintheASEANRegion. Programs and initiatives of IPOPHL are supported by appropriate ITbased resourcesandsolutions AnITbasedInformationCenter,aconglomerationoftheIPOPHLCallCenter, KnowledgeCenter,andEnforcementCenter,isestablished The ICT Strategic Direction Statement and broad parameters are defined to ensurethatMISoperationalplansandactionsarealignedwiththeprograms andinitiativesofIPOPHL UsersandadministratorsofIPOPHLsICTfacilitiesareguidedbyICTpolicies to ensure that ICT assets are used and maintained effectively in a secure environment IPOPHL is able to respond to accidents, disasters, emergencies or threats withoutanystoppageinitscriticalbusinessoperations Organizational goals are supported by broadbased constituents within IPOPHL The office environment at IPOPHL headquarters is significantly enhanced withthesuccessfultransferofitsoperationstothenewofficebuilding ThesafetyandsecurityofIPOPHLemployeesareassuredthroughcompliance withoccupational,health,andsafetyworkenvironmentrequirements

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Integrity of records and administrative work are greatly improved by an institutionalofficewiderecordsmanagementsystem Operational and transaction costs are lowered with an enhanced Property ProcurementInventoryManagementSystem(PPIMS) IPOPHLmanagementissupportedbyastrategicHR Organizational efficiency and effectiveness is achieved through increased accountabilitytopredeterminedworkdeliverablessupportingthe8strategic goalsofIPOPHL IPOPHL employees enjoy a more balanced worklife through holistic life enrichingprograms

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ANNEXES

TABLESOFSTATISTICALDATA 1.RESIDENTANDNONRESIDENTFILINGSANDGRANTS/REGISTRATIONS Resident applications refer to those filed by an applicant, who is a resident of the Philippines, at the Intellectual Property Office of the Philippines. Nonresident applications refer to those filed by applicants, who are not residents of the Philippines,attheIntellectualPropertyOfficeofthePhilippines. A.TRADEMARKFILINGS
YEAR 2005 2006 2007 2008 2009 2010 NONRESIDENT 5,680 6,175 6,402 6,987 6,135 7,076 RESIDENT 7,048 8,317 8,676 8,870 8,874 9,751 NOTSPECIFIED 1 2 0 1 2 0 TOTAL 12,729 14,494 15,078 15,858 15,011 16,827

*Note:Thechangeindatafromthosepublishedinthe20082009IPOPHLPerformanceReportis
duetotheTMdatabaseupdatingproject.

B.TRADEMARKREGISTRATIONS
YEAR 2005 2006 2007 2008 2009 2010 NONRESIDENT 6,816 7,634 10,177 7,285 5,800 6,141 RESIDENT 3,208 5,027 7,414 6,582 5,380 5,887 NOTSPECIFIED 0 2 1 1 1 0 TOTAL 10,024 12,663 17,592 13,868 11,181 12,028

*Note:Thechangeindatafromthosepublishedinthe20082009IPOPHLPerformanceReportis
duetotheTMdatabaseupdatingproject.

C.INVENTIONPATENTFILINGS
YEAR 2005 2006 2007 2008 2009 2010 NONRESIDENT 2,762 3,038 3,248 3,097 2,825 3,224 RESIDENT 210 223 225 216 172 167 TOTAL 2,972 3,261 3,473 3,313 2,997 3,391

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D.INVENTIONPATENTGRANTS
YEAR 2005 2006 2007 2008 2009 2010 NONRESIDENT 1,638 1,191 1,785 797 1,657 1,140 RESIDENT 4 5 2 41 22 13 TOTAL 1,642 1,196 1,787 838 1,679 1,153

E.UTILITYMODELFILINGS
YEAR 2005 2006 2007 2008 2009 2010 NONRESIDENT 27 22 32 33 48 35 RESIDENT 519 519 395 512 496 579 TOTAL 546 541 427 545 544 614

F.UTILITYMODELREGISTRATIONS
YEAR 2005 2006 2007 2008 2009 2010 NONRESIDENT 14 18 58 52 51 49 RESIDENT 296 282 715 405 317 326 TOTAL 310 300 773 457 368 375

G.INDUSTRIALDESIGNFILINGS
YEAR 2005 2006 2007 2008 2009 2010 NONRESIDENT 619 486 434 581 320 415 RESIDENT 646 475 431 640 458 432 TOTAL 1,265 961 865 1,221 778 847

H.INDUSTRIALDESIGNREGISTRATIONS
YEAR 2005 NONRESIDENT 332 RESIDENT 426 TOTAL 758

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2006 2007 2008 2009 2010

306 865 721 213 318

293 468 493 309 324

599 1,333 1,214 522 642

2.CASESFILEDANDDISPOSED A.INTERPARTESANDIPVIOLATIONCASEFILINGS
YEAR 2005 2006 2007 2008 2009 2010 IPC 140 200 359 371 296 333 IPV 30 22 14 13 14 17 TOTAL 170 222 373 384 310 350

B.INTERPARTESANDIPVIOLATIONCASEDISPOSALS
YEAR 2005 2006 2007 2008 2009 2010 IPC 145 284 295 303 299 137 IPV 19 25 26 13 14 5 TOTAL 164 309 321 316 313 123

3.TRADEMARKFILINGSBYREGION
REGION I II III IV V VI VII VIII IX X XI XII XIII IVA IVB 2005 17 7 119 156 3 39 171 23 3 10 52 18 2 48 1 2006 13 19 142 123 17 27 199 11 13 13 93 7 4 158 5 2007 14 9 160 62 19 49 201 15 9 11 76 27 8 211 4 2008 17 20 154 52 21 87 243 11 21 16 58 14 0 193 15 2009 10 12 162 54 17 65 210 2 10 17 115 19 6 126 15 2010 16 17 285 15 24 93 298 12 10 20 134 16 1 303 5
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ARMM CAR NCR Not Specified

1 7 4,890 1,481

0 10 5,872 1,593

0 7 6,224 1,570

0 15 5,795 2,142

3 17 4,753 3,263

0 11 5,966 2,525

4.TRADEMARKFILINGSTHROUGHTHEIPSATELLITEOFFICES
REGION I II III IV V VI VII VIII IX X XI XII XIII IVA IVB ARMM CAR NCR NotSpecified TOTAL 2008 0 0 2 0 0 2 7 0 0 0 3 0 0 0 0 0 0 4 24 42 2009 4 2 27 0 5 12 92 1 1 3 60 6 1 0 0 0 7 46 152 419 2010 3 8 52 3 12 8 117 3 0 2 70 9 1 1 0 0 7 54 185 535

5.INVENTION,UTILITYMODEL,ANDINDUSTRIALDESIGNFILINGSTHROUGHTHEIP SATELLITEOFFICES
REGION I II III IV V VI VII VIII IX X XI XII 2009 INV UM ID 0 3 0 0 0 0 0 0 5 0 0 0 0 3 3 9 9 1 1 5 4 0 2 0 0 0 0 0 3 6 10 10 1 0 13 0 INV 0 1 1 0 1 1 4 0 1 1 3 4 2010 UM 19 4 2 0 3 28 19 0 1 4 5 2 ID 1 6 1 0 1 0 21 0 0 0 0 1

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XIII IVA IVB ARMM CAR NCR TOTAL

4 0 0 0 1 1 26

3 0 0 0 0 12 63

1 0 0 0 0 3 24

0 0 3 0 9 6 35

5 0 0 7 31 24 103

0 1 0 1 0 14 47

6.PATENTFILINGSFROMUNIVERSITIESTHROUGHTHEIPSOs
UNIVERSITY St.LouisUniversity(BaguioCity) IfugaoStateUniversity(Lamut&Tinoc,Ifugao) BenguetStateUniversity(La,Trinidad,Benguet) ApayaoStateCollege(Luna,Apayao) KalingaApayaoStateCollege(TabukCity,Kalinga) AbraStateInstituteofScienceandTechnology(Langangilang,Abra) MarianoMarcosStateUniversity(BatacCity,IlocosNorte) UniversityofNorthernPhilippines(ViganCity) DonMarianoMarcosMemorialStateUniversity(Bacnotan,LaUnion) PangasinanStateUniversity(Bayambang,Pangasinan) IsabelaStateUniversity(Iligan,Isabela) NuevaViscayastateuniversity(Bayombong,NuevaVizcaya) CentralLuzonStateUniversity(Muoz,NuevaEcija) WesternPhils.University(PuertoPricesaCity,Palawan) BicolUniversity(Legazpi,Albay) WesternVisayasCollegeofScienceandTechnology(Lapaz,IloiloCity) IloiloStateCollegeofFisheries(IloiloCity) UniversityofAntique(Sibalom,Tibiao&Hamtic,Antique) UniversityofSt.LaSalle(BacolodCity) ColegioSanAgustin(BacolodCity) NorthernNegrosStateCollegeofScienceandTechnology(SagayCity, NegrosOccidental) TechnologicalUniversityofthePhilippines(TalisayCity,Negros Occidental) CarlosHiladoMemorialStateCollege(TalisayCity,NegrosOccidental) CebuTechnologicalUniversity(CebuCity&Barili,Cebu) MindanaoStateUniversity(Naawan,MisamisOriental) SouthernPhilippinesAgriBusinessandMarineandAquaticSchoolof Technology(DigosCity&Malita,DavaodelSur) CotabatoCityStatePolytechnicCollege(CotabatoCity) UniversityofSouthernMindanao(Kidapawan&Kabacan,NorthCotabato) FatherSaturninoUriosUniversity(ButuanCity) CaragaStateUniversity(CabadbaranCity,AgusandelNorte) SultanKudaratStateUniversity(Tacurong,SultanKudarat) TOTAL PATENTS FILED 3 7 6 4 4 4 2 1 14 1 1 6 2 3 2 2 3 7 1 1 1 1 1 16 1 2 1 3 1 3 4 108

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IPOPHLANNUALREPORT2010TEAM HEAD: MR.ERICT.LANADO,DIRECTORIII TEAMLEADER: MS.SHERRYLU.YUKI,PLANNINGOFFICERIII CONTRIBUTORS: ATTY.NATHANIELS.AREVALO,DIRECTORIV ENGR.ROSAM.FERNANDEZ,IPRSPECIALISTIV MS.REMEDIOSN.GARCIA,IPRSPECIALISTIII ATTY.CHESTERARTUROD.CINCO,ATTORNEYIV MR.RIZALINOF.GALACIOJR.,INFORMATIONTECHNOLOGYOFFICERI MS.MA.VICTORIAN.SUAREZ,BUDGETOFFICERIII MR.EDGARALLANC.YORRO,ADMINISTRATIVEOFFICERV DESIGNAND MR.ALJENR.CHU,INFORMATIONSYSTEMSANALYSTI LAYOUT: PHOTOGRAPHY: MR.ALJENR.CHU,INFORMATIONSYSTEMSANALYSTI MS.GLADYSB.UPO,INFORMATIONSYSTEMSANALYSTI MS.SHERYLC.TAON,ADMINISTRATIVEOFFICERIV MR.RODELS.ESPIRITU,IPRSPECIALISTII MR.JEFFERSONN.ACIERTO,IPRSPECIALISTII

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