THE INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES

(Republic Act No. 829 !

PART I THE INTELLECTUAL PROPERTY OFFICE

Sec. 1. Title

This Act shall be known as the Intellectual Property Code of the Philippines.
Sec. 2. Declaration of State Policy

The State recognizes that an effective intellectual and industrial property system is vital to the development of domestic and creative activity facilitates transfer of technology attracts foreign investments and ensures market access for our products. It shall protect and secure the e!clusive rights of scientists inventors artists and other gifted citizens to their intellectual property and creations particularly when beneficial to the people for such periods as provided in this Act. The use of intellectual property bears a social function. To this end the State shall promote the diffusion of knowledge and information for the promotion of national development and progress and the common good. It is also the policy of the State to streamline administrative procedures of registering patents trademarks and copyright to liberalize the registration on the transfer of technology and to enhance the enforcement of intellectual property rights in the Philippines. "n#
Sec. 3. International Conventions and Reciprocity

Any person who is a national or who is domiciled or has a real and effective industrial establishment in a country which is a party to any convention treaty or agreement relating to intellectual property rights or the repression of unfair competition to which the Philippines is also a party or e!tends reciprocal rights to nationals of the Philippines by law shall be entitled to benefits to the e!tent necessary to give effect to any provision of such convention treaty or reciprocal law in addition to the rights to which any owner of an intellectual property right is otherwise entitled by this Act. "n#
Sec. 4. Definitions 4.1.Thetermintellectualpropertyrightsconsistsof$

a# Copyright and %elated %ights& b# Trademarks and Service 'arks&

c# (eographic Indications& d# Industrial )esigns& e# Patents& f# *ayout+)esigns "Topographies# of Integrated Circuits& and g# Protection of ,ndisclosed Information "n T%IPS#. 4.2. The term -technology transfer arrangements- refers to contracts or agreements involving the transfer of systematic knowledge for the manufacture of a product the application of a process or rendering of a service including management contracts& and the transfer assignment or licensing of all forms of intellectual property rights including licensing of computer software e!cept computer software developed for mass market.
4.3. 4.4.

The term -.ffice- refers to the Intellectual Property .ffice created by this Act. The term -IP. (azette- refers to the gazette published by the .ffice under this

Act."n#
Sec. 5. Functions of t e Intellectual Property !ffice "IP!#

To administer and implement the State policies declared in this Act there is hereby created the Intellectual Property .ffice "IP.# which shall have the following functions$
5.1.

a# /!amine applications for grant of letters patent for inventions and register utility models and industrial designs& b# /!amine applications for the registration of marks geographic indication integrated circuits& c# %egister technology transfer arrangements and settle disputes involving technology transfer payments covered by the provisions of Part II Chapter I0 on 1oluntary *icensing and develop and implement strategies to promote and facilitate technology transfer& d# Promote the use of patent information as a tool for technology development& e# Publish regularly in its own publication the patents marks utility models and industrial designs issued and approved and the technology transfer arrangements registered& f# Administratively ad2udicate contested proceedings affecting intellectual property rights& and g# Coordinate with other government agencies and the private sector efforts to formulate and implement plans and policies to strengthen the protection of intellectual property rights in the country. The .ffice shall have custody of all records books drawings specifications documents and other papers and things relating to intellectual property rights applications filed with the .ffice. "n#
5.2. Sec. $. T e !r%ani&ational Structure of t e IP!

$.1. The .ffice shall be headed by a )irector (eneral who shall be assisted by two "3# )eputies )irector (eneral.

The .ffice shall be divided into si! "4# 5ureaus each of which shall be headed by a )irector and assisted by an Assistant )irector. These 5ureaus are$
$.2.

a# The 5ureau of Patents& b# The 5ureau of Trademarks& c# The 5ureau of *egal Affairs& d# The )ocumentation Information and Technology Transfer 5ureau& e# The 'anagement Information System and /)P 5ureau& and f# The Administrative 6inancial and Personnel Services 5ureau.
$.3. The )irector (eneral )eputies )irector (eneral )irectors and Assistant )irectors shall be appointed by the President and the other officers and employees of the .ffice by the Secretary of Trade and Industry conformably with and under the Civil Service *aw. "n#

Sec. '. T e Director (eneral and Deputy Director (enerals '.1. 6unctions. + The )irector (eneral shall e!ercise the following powers and functions$

a# 'anage and direct all functions and activities of the .ffice including the promulgation of rules and regulations to implement the ob2ectives policies plans programs and pro2ects of the .ffice$ Provided That in the e!ercise of the authority to propose policies and standards in relation to the following$ "7# the effective efficient and economical operations of the .ffice re8uiring statutory enactment& "3# coordination with other agencies of government in relation to the enforcement of intellectual property rights& "9# the recognition of attorneys agents or other persons representing applicants or other parties before the .ffice& and ":# the establishment of fees for the filing and processing of an application for a patent utility model or industrial design or mark or a collective mark geographic indication and other marks of ownership and for all other services performed and materials furnished by the .ffice the )irector (eneral shall be sub2ect to the supervision of the Secretary of Trade and Industry& b# /!ercise e!clusive appellate 2urisdiction over all decisions rendered by the )irector of *egal Affairs the )irector of Patents the )irector of Trademarks and the )irector of the )ocumentation Information and Technology Transfer 5ureau. The decisions of the )irector (eneral in the e!ercise of his appellate 2urisdiction in respect of the decisions of the )irector of Patents and the )irector of Trademarks shall be appealable to the Court of Appeals in accordance with the %ules of Court& and those in respect of the decisions of the )irector of )ocumentation Information and Technology Transfer 5ureau shall be appealable to the Secretary of Trade and Industry& and

c# /!ercise original 2urisdiction to resolve disputes relating to the terms of a license involving the author;s right to public performance or other communication of his work. The decisions of the )irector (eneral in these cases shall be appealable to the Secretary of Trade and Industry.
'.2. <ualifications + The )irector (eneral and the )eputies )irector (eneral must be natural born citizens of the Philippines at least thirty+five "9=# years of age on the day of their appointment holders of a college degree and of proven competence integrity probity and independence$ Provided That the )irector (eneral and at least one "7# )eputy )irector (eneral shall be members of the Philippine 5ar who have engaged in the practice of law for at least ten "7># years$ Provided further That in the selection of the )irector (eneral and the )eputies )irector (eneral consideration shall be given to such 8ualifications as would result as far as practicable in the balanced representation in the )irectorate (eneral of the various fields of intellectual property.

Term of .ffice. The )irector (eneral and the )eputies )irector (eneral shall be appointed by the President for a term of five "=# years and shall be eligible for reappointment only once$ Provided That the first )irector (eneral shall have a first term of seven "?# years. Appointment to any vacancy shall be only for the une!pired term of the predecessor.
'.3. '.4. The .ffice of the )irector (eneral. + The .ffice of the )irector (eneral shall consist of the )irector (eneral and the )eputies )irector (eneral their immediate staff and such .ffices and Services that the )irector (eneral will set up to support directly the .ffice of the )irector (eneral. "n#

Sec. ). T e *ureau of Patent

The 5ureau of Patents shall have the following functions$

).1. ).2.

Search and e!amination of patent applications and the grant of patents& %egistration of utility models industrial designs and integrated circuits& and

).2. Conduct studies and researches in the field of patents in order to assist the )irector (eneral in formulating policies on the administration and e!amination of patents. "n#

Sec. +. T e *ureau of Trade,ar-s

The 5ureau of Trademarks shall have the following functions$ Search and e!amination of the applications for the registration of marks geographic indications and other marks of ownership and the issuance of the certificates of registration& and
+.1.

+.2. Conduct studies and researches in the field of trademarks in order to assist the )irector (eneral in formulating policies on the administration and e!amination of trademarks."n#

Sec.1.. T e *ureau of /e%al 0ffairs

The 5ureau of *egal Affairs shall have the following functions$ @ear and decide opposition to the application for registration of marks& cancellation of trademarks& sub2ect to the provisions of Section 4: cancellation of patents utility models and industrial designs& and petitions for compulsory licensing of patents&
1..1. 1..2. "a# /!ercise original 2urisdiction in administrative complaints for violations of laws involving intellectual property rights$ Provided That its 2urisdiction is limited to complaints where the total damages claimed are not less than Two hundred thousand pesos "PhP 3>> >>>#$ Provided further That availment of the provisional remedies may be granted in accordance with the %ules of Court. The )irector of *egal Affairs shall have the power to hold and punish for contempt all those who disregard orders or writs issued in the course of the proceedings. "n#

"b# After formal investigation the )irector for *egal Affairs may impose one "7# or more of the following administrative penalties$ "i# The issuance of a cease and desist order which shall specify the acts that the respondent shall cease and desist from and shall re8uire him to submit a compliance report within a reasonable time which shall be fi!ed in the order& The acceptance of a voluntary assurance of compliance or discontinuance as may be imposed. Such voluntary assurance may include one or more of the following$ "l# An assurance to comply with the provisions of the intellectual property law violated& "3# An assurance to refrain from engaging in unlawful and unfair acts and practices sub2ect of the formal investigation& "9# An assurance to recall replace repair or refund the money value of defective goods distributed in commerce& and ":# An assurance to reimburse the complainant the e!penses and costs incurred in prosecuting the case in the 5ureau of *egal Affairs. The )irector of *egal Affairs may also re8uire the respondent to submit periodic compliance reports and file a bond to guarantee compliance of his undertaking "iii# The condemnation or seizure of products which are sub2ect of the offense.

"ii#

The goods seized hereunder shall be disposed of in such manner as may be deemed appropriate by the )irector of *egal Affairs such as by sale donation to distressed local governments or to charitable or relief institutions e!portation recycling into other goods or any combination thereof under such guidelines as he may provide& "iv# The forfeiture of paraphernalia and all real and personal properties which have been used in the commission of the offense& "v# The imposition of administrative fines in such amount as deemed reasonable by the )irector of *egal Affairs which shall in no case be less than 6ive thousand pesos "PhP = >>># nor more than .ne hundred fifty thousand pesos "PhP 7=> >>>#. In addition an additional fine of not more than .ne thousand pesos "PhP 7 >>># shall be imposed for each day of continuing violation& "vi# The cancellation of any permit license authority or registration which may have been granted by the .ffice or the suspension of the validity thereof for such period of time as the )irector of *egal Affairs may deem reasonable which shall not e!ceed one "7# year& "vii# The withholding of any permit license authority or registration which is being secured by the respondent from the .ffice& "viii# The assessment of damages& "i!# Censure& and& "!# .ther analogous penalties or sanctions. "Sec. 4 ? A and B /!ecutive .rder Co. B79 D7BA9Ea# The )irector (eneral may by %egulations establish the procedure to govern the implementation of this Section. "n#
1..3. Sec. 11. T e Docu,entation1 Infor,ation and Tec nolo%y Transfer *ureau

The )ocumentation Information and Technology Transfer 5ureau shall have the following functions$ Support the search and e!amination activities of the .ffice through the following activities$
11.1.

"a# 'aintain and upkeep classification systems whether they be national or international such as the International Patent Classification "IPC# system& "b# Provide advisory services for the determination of search patterns& "c# 'aintain search files and search rooms and reference libraries& and "d# Adapt and package industrial property information.
11.2. 11.3.

/stablish networks or intermediaries or regional representatives&

/ducate the public and build awareness on intellectual property through the conduct of seminars and lectures and other similar activities&
11.4. /stablish working relations with research and development institutions as well as with local and international intellectual property professional groups and the like&

11.5.

Perform state+of+the+art searches&

Promote the use of patent information as an effective tool to facilitate the development of technology in the country&
11.$. 11.'. Provide technical advisory and other services relating to the licensing and promotion of technology and carry out an efficient and effective program for technology transfer& and

%egister technology transfer arrangements and settle disputes involving technology transfer payments. "n#
11.). Sec. 12. T e 2ana%e,ent Infor,ation Services and 3DP *ureau

The 'anagement Information Services and /)P 5ureau shall$

12.1. Conduct automation planning research and development testing of systems contracts with firms contracting purchase and maintenance of e8uipment design and maintenance of systems user consultation and the like& and 12.2. Provide management information support and service to the .ffice. "n#

Sec. 13. T e 0d,inistrative1 Financial and 4u,an Resource Develop,ent Service *ureau 13.1.

The Administrative Service shall$

"a# Provide services relative to procurement and allocation of supplies and e8uipment transportation messengerial work cashiering payment of salaries and other .fficeFs obligations office maintenance proper safety and security and other utility services& and comply with government regulatory re8uirements in the areas of performance appraisal compensation and benefits employment records and reports& "b# %eceive all applications filed with the .ffice and collect fees therefore& and "c# Publish patent applications and grants trademark applications and registration of marks industrial designs utility models geographic indication and lay+out+designs of integrated circuits registrations. The Patent and Trademark Administration Services shall perform the following functions among others$
13.2.

"a# 'aintain registers of assignments mergings licenses and bibliographic on patents and trademarks& "b# Collect maintenance fees issue certified copies of documents in its custody and perform similar other activities& and

"c# @old in custody all the applications filed with the office and all patent grants certificate of registrations issued by the office and the like.
13.3. The 6inancial Service shall formulate and manage a financial program to ensure availability and proper utilization of funds& provide for an effective monitoring system of the financial operations of the .ffice& and

The @uman %esource )evelopment Service shall design and implement human resource development plans and programs for the personnel of the .ffice& provide for present and future manpower needs of the organization& maintain high morale and favorable employee attitudes towards the organization through the continuing design and implementation of employee development programs. "n#
13.4. Sec. 14. 5se of Intellectual Property Ri% ts Fees 6y t e IP!

6or a more effective and e!peditious implementation of this Act the )irector (eneral shall be authorized to retain without need of a separate approval from any government agency and sub2ect only to the e!isting accounting and auditing rules and regulations all the fees fines royalties and other charges collected by the .ffice under this Act and the other laws that the .ffice will be mandated to administer for use in its operations like upgrading of its facilities e8uipment outlay human resource development and the ac8uisition of the appropriate office space among others to improve the delivery of its services to the public. This amount which shall be in addition to the .fficeFs annual budget shall be deposited and maintained in a separate account or fund which may be used or disbursed directly by the )irector (eneral.
14.1.

After five "=# years from the coming into force of this Act the )irector (eneral shall sub2ect to the approval of the Secretary of Trade and Industry determine if the fees and charges mentioned in Subsection 7:.7 hereof that the .ffice shall collect are sufficient to meet its budgetary re8uirements. If so it shall retain all the fees and charges it shall collect under the same conditions indicated in said Subsection 7:.7 but shall forthwith cease to receive any funds from the annual budget of the Cational (overnment& if not the provisions of said Subsection 7:.7 shall continue to apply until such time when the )irector (eneral sub2ect to the approval of the Secretary of Trade and Industry certifies that the above+stated fees and charges the .ffice shall collect are enough to fund its operations. "n#.
14.2.

Sec. 15. Special Tec nical and Scientific 0ssistance

The )irector (eneral is empowered to obtain the assistance of technical scientific or other 8ualified officers and employees of other departments bureaus offices agencies and instrumentalities of the (overnment including corporations owned controlled or operated by the (overnment when deemed necessary in the consideration of any matter

submitted to the .ffice relative to the enforcement of the provisions of this Act. "Sec. 9 %.A. Co. 74=a#

Sec. 1$. Seal of !ffice

The .ffice shall have a seal the form and design of which shall be approved by the )irector (eneral. "Sec. : %.A. Co. 74=a#

Sec. 1'. Pu6lication of /a7s and Re%ulations

The )irector (eneral shall cause to be printed and make available for distribution pamphlet copies of this Act other pertinent laws e!ecutive orders and information circulars relating to matters within the 2urisdiction of the .ffice. "Sec. = %.A. Co. 74=a#

Sec. 1). T e IP! (a&ette

All matters re8uired to be published under this Act shall be published in the .fficeFs own publication to be known as the IP. (azette. "n#
Sec. 1+. Dis8ualification of !fficers and 3,ployees of t e !ffice

All officers and employees of the .ffice shall not apply or act as an attorney or patent agent of an application for a grant of patent for the registration of a utility model industrial design or mark nor ac8uire e!cept by hereditary succession any patent or utility model design registration or mark or any right title or interest therein during their employment and for one "7# year thereafter. "Sec. ?? %.A. Co. 74=a# PART II

LAWS ON PATENTS
Chapter I GENERAL PROVISIONS Sec. 20. )efinition of Terms ,sed in Part II The *aw on Patents. ++ As used in Part II the following terms shall have the following meanings$

3>.7. -5ureau- means the 5ureau of Patents& 3>.3. -)irector- means the )irector of Patents& 3>.9. -%egulations- means the %ules of Practice in Patent Cases formulated by the )irector of Patents and promulgated by the )irector (eneral& 3>.:. -/!aminer- means the patent e!aminer& 3>.=. -Patent application- or -application- means an application for a patent for an invention e!cept in Chapters 0II and 0III where application means an application for a utility model and an industrial design respectively& and 3>.4. -Priority date- means the date of filing of the foreign application for the same invention referred to in Section 97 of this Act. "n# Chapter II PATENTABILITY Sec. 21. Patentable Inventions Any technical solution of a problem in any field of human activity which is new involves an inventive step and is industrially applicable shall be patentable. It may be or may relate to a product or process or an improvement of any of the foregoing. "Sec. ? %.A. Co.74=a# Sec. 22. Con+Patentable Inventions The following shall be e!cluded from patent protection$ 33.7. )iscoveries scientific theories and mathematical methods& 33.3. Schemes rules and methods of performing mental acts playing games or doing business and programs for computers& 33.9 'ethods for treatment of the human or animal body by surgery or therapy and diagnostic methods practiced on the human or animal body. This provision shall not apply to products and composition for use in any of these methods& 33.:. Plant varieties or animal breeds or essentially biological process for the production of plants or animals. This provision shall not apply to micro+organisms and non+biological and microbiological processes. Provisions under this subsection shall not preclude Congress to consider the enactment of a law providing sui generis protection of plant varieties and animal breeds and a system of community intellectual rights protection$ 33.=. Aesthetic creations& and

33.4. Anything which is contrary to public order or morality. "Sec. A %.A. Co. 74=a# Sec. 23. Covelty An invention shall not be considered new if it forms part of a prior art. "Sec. B %.A. Co. 74=a# Sec. 24. Prior Art Prior art shall consist of$ 3:.7. /verything which has been made available to the public anywhere in the world before the filing date or the priority date of the application claiming the invention& and 3:.3. The whole contents of an application for a patent utility model or industrial design registration published in accordance with this Act filed or effective in the Philippines with a filing or priority date that is earlier than the filing or priority date of the application$ Provided That the application which has validly claimed the filing date of an earlier application under Section 97 of this Act shall be prior art with effect as of the filing date of such earlier application$ Provided further That the applicant or the inventor identified in both applications are not one and the same. "Sec. B %.A. Co. 74=a# Sec. 3=. Con+Pre2udicial )isclosure 3=.7. The disclosure of information contained in the application during the twelve "73# months preceding the filing date or the priority date of the application shall not pre2udice the applicant on the ground of lack of novelty if such disclosure was made by$ "a# The inventor& "b# A patent office and the information was contained "a# in another application filed by the inventor and should not have been disclosed by the office or "b# in an application filed without the knowledge or consent of the inventor by a third party which obtained the information directly or indirectly from the inventor& or "c# A third party which obtained the information directly or indirectly from the inventor. 3=.3. 6or the purposes of Subsection 3=.7 -inventor- also means any person who at the filing date of application had the right to the patent. "n# Sec. 26. Inventive Step An invention involves an inventive step if having regard to prior art it is not obvious to a person skilled in the art at the time of the filing date or priority date of the application claiming the invention. "n# Sec. 2 . Industrial Applicability

An invention that can be produced and used in any industry shall be industrially applicable. "n# Chapter III RIG!T TO A PATENT Sec. 2". %ight to a Patent The right to a patent belongs to the inventor his heirs or assigns. Ghen two "3# or more persons have 2ointly made an invention the right to a patent shall belong to them 2ointly. "Sec. 7> %.A. Co. 74=a# Sec. 2#. 6irst to 6ile %ule If two "3# or more persons have made the invention separately and independently of each other the right to the patent shall belong to the person who filed an application for such invention or where two or more applications are filed for the same invention to the applicant who has the earliest filing date or the earliest priority date. "9rd sentence Sec. 7> %.A. Co. 74=a.# Sec. 30. Inventions Created Pursuant to a Commission 9>.7. The person who commissions the work shall own the patent unless otherwise provided in the contract.

9>.3. In case the employee made the invention in the course of his employment contract the patent shall belong to$ "a# The employee if the inventive activity is not a part of his regular duties even if the employee uses the time facilities and materials of the employer. "b# The employer if the invention is the result of the performance of his regularly+assigned duties unless there is an agreement e!press or implied to the contrary. "n#

Sec. 31. %ight of Priority

An application for patent filed by any person who has previously applied for the same invention in another country which by treaty convention or law affords similar privileges to 6ilipino citizens shall be considered as filed as of the date of filing the foreign application$ Provided That$ "a# the local application e!pressly claims priority& "b# it is filed within twelve "73# months from the date the earliest foreign application was filed& and "c# a certified copy of the foreign application together with an /nglish translation is filed within si! "4# months from the date of filing in the Philippines. "Sec. 7= %.A. Co. 74=a#

Chapter IV PATENT APPLICATION Sec. 32. The Application 93.7. The patent application shall be in 6ilipino or /nglish and shall contain the following$ "a# "b# "c# "d# "e# A re8uest for the grant of a patent& A description of the invention& )rawings necessary for the understanding of the invention& .ne or more claims& and An abstract.

93.3. Co patent may be granted unless the application identifies the inventor. If the applicant is not the inventor the .ffice may re8uire him to submit said authority. "Sec. 79 %.A. Co. 74=a# Sec. 33. Appointment of Agent or %epresentative An applicant who is not a resident of the Philippines must appoint and maintain a resident agent or representative in the Philippines upon whom notice or process for 2udicial or administrative procedure relating to the application for patent or the patent may be served. "Sec. 77 %.A. Co. 74=a# Sec. 34. The %e8uest The re8uest shall contain a petition for the grant of the patent the name and other data of the applicant the inventor and the agent and the title of the invention. "n# Sec. 3$. )isclosure and )escription of the Invention

9=.7. )isclosure. + The application shall disclose the invention in a manner sufficiently clear and complete for it to be carried out by a person skilled in the art. Ghere the application concerns a microbiological process or the product thereof and involves the use of a micro+organism which cannot be sufficiently disclosed in the application in such a way as to enable the invention to be carried out by a person skilled in the art and such material is not available to the public the application shall be supplemented by a deposit of such material with an international depository institution. 9=.3. )escription. + The %egulations shall prescribe the contents of the description and the order of presentation. "Sec. 7: %.A. Co. 74=a# SEC. 36. The Claims 94.7. The application shall contain one "7# or more claims which shall define the matter for which protection is sought. /ach claim shall be clear and concise and shall be supported by the description. 94.3. The %egulations shall prescribe the manner of the presentation of claims. "n# Sec. 3 . The Abstract The abstract shall consist of a concise summary of the disclosure of the invention as contained in the description claims and drawings in preferably not more than one hundred fifty "7=># words. It must be drafted in a way which allows the clear understanding of the technical problem the gist of the solution of that problem through the invention and the principal use or uses of the invention. The abstract shall merely serve for technical information. "n# Sec. 9A. ,nity of Invention 9A.7. The application shall relate to one invention only or to a group of inventions forming a single general inventive concept. 9A.3. If several independent inventions which do not form a single general inventive concept are claimed in one application the )irector may re8uire that the application be restricted to a single invention. A later application filed for an invention divided out shall be considered as having been filed on the same day as the first application$ Provided That the later application is filed within four ":# months after the re8uirement to divide becomes final or within such additional time not e!ceeding four ":# months as may be granted$ Provided further That each divisional application shall not go beyond the disclosure in the initial application.

9A.9. The fact that a patent has been granted on an application that did not comply with the re8uirement of unity of invention shall not be a ground to cancel the patent. "Sec. 7? %.A. Co. 74=a#

Sec. 3#. Information Concerning Corresponding 6oreign Application for Patents The applicant shall at the re8uest of the )irector furnish him with the date and number of any application for a patent filed by him abroad hereafter referred to as the -foreign application - relating to the same or essentially the same invention as that claimed in the application filed with the .ffice and other documents relating to the foreign application. "n#

Chapter V PROCE%&RE 'OR GRANT O' PATENT Sec. 40. 6iling )ate %e8uirements :>.7. The filing date of a patent application shall be the date of receipt by the .ffice of at least the following elements$ "a# An e!press or implicit indication that a Philippine patent is sought& "b# Information identifying the applicant& and "c# )escription of the invention and one "7# or more claims in 6ilipino or /nglish. :>.3. If any of these elements is not submitted within the period set by the %egulations the application shall be considered withdrawn. "n# Sec. 41. According a 6iling )ate The .ffice shall e!amine whether the patent application satisfies the re8uirements for the grant of date of filing as provided in Section :> hereof. If the date of filing cannot be accorded the applicant shall be given an opportunity to correct the deficiencies in accordance with the implementing %egulations. If the application does not contain all the elements indicated in Section :> the filing date should be that date when all the elements are received. If the deficiencies are not remedied within the prescribed time limit the application shall be considered withdrawn. "n# Sec. 42. 6ormality /!amination

:3.7. After the patent application has been accorded a filing date and the re8uired fees have been paid on time in accordance with the %egulations the applicant shall comply with the formal re8uirements specified by Section 93 and the %egulations within the prescribed period otherwise the application shall be considered withdrawn. :3.3. The %egulations shall determine the procedure for the re+e!amination and revival of an application as well as the appeal to the )irector of Patents from any final action by the e!aminer. "Sec. 74 %.A. Co. 74=a# Sec. 43. Classification and Search An application that has complied with the formal re8uirement shall be classified and a search conducted to determine the prior art. "n# Sec. 44. Publication of Patent Application ::.7. The patent application shall be published in the IP. (azette together with a search document established by or on behalf of the .ffice citing any documents that reflect prior art after the e!piration of eighteen "7A# months from the filing date or priority date. ::.3. After publication of a patent application any interested party may inspect the application documents filed with the .ffice. ::.9. The )irector (eneral sub2ect to the approval of the Secretary of Trade and Industry may prohibit or restrict the publication of an application if in his opinion to do so would be pre2udicial to the national security and interests of the %epublic of the Philippines. "n#

Sec. 4$. Confidentiality 5efore Publication A patent application which has not yet been published and all related documents shall not be made available for inspection without the consent of the applicant. "n# Sec. 46. %ights Conferred by a Patent Application After Publication The applicant shall have all the rights of a patentee under Section ?4 against any person who without his authorization e!ercised any of the rights conferred under Section ?7 of this Act in relation to the invention claimed in the published patent

application as if a patent had been granted for that invention$ Provided That the said person had$ :4.7. Actual knowledge that the invention that he was using was the sub2ect matter of a published application& or :4.3. %eceived written notice that the invention that he was using was the sub2ect matter of a published application being identified in the said notice by its serial number$ Provided That the action may not be filed until after the grant of a patent on the published application and within four ":# years from the commission of the acts complained of. "n# Sec. 4 . .bservation by Third Parties 6ollowing the publication of the patent application any person may present observations in writing concerning the patentability of the invention. Such observations shall be communicated to the applicant who may comment on them. The .ffice shall acknowledge and put such observations and comment in the file of the application to which it relates. "n# Sec. 4". %e8uest for Substantive /!amination :A.7. The application shall be deemed withdrawn unless within si! "4# months from the date of publication under Section :7 a written re8uest to determine whether a patent application meets the re8uirements of Sections 37 to 3? and Sections 93 to 9B and the fees have been paid on time. :A.3. Githdrawal of the re8uest for e!amination shall be irrevocable and shall not authorize the refund of any fee. "n#

Sec. 4#. Amendment of Application An applicant may amend the patent application during e!amination$ Provided That such amendment shall not include new matter outside the scope of the disclosure contained in the application as filed. "n# Sec. $0. (rant of Patent =>.7. If the application meets the re8uirements of this Act the .ffice shall grant the patent$ Provided That all the fees are paid on time.

=>.3. If the re8uired fees for grant and printing are not paid in due time the application shall be deemed to be withdrawn. =>.9. A patent shall take effect on the date of the publication of the grant of the patent in the IP. (azette. "Sec. 7A %.A. Co. 74=a# Sec. $1. %efusal of the Application =7.7. The final order of refusal of the e!aminer to grant the patent shall be appealable to the )irector in accordance with this Act. =7.3. The %egulations shall provide for the procedure by which an appeal from the order of refusal from the )irector shall be undertaken. "n# Sec. $2. Publication ,pon (rant of Patent =3.7. The grant of the patent together with other related information shall be published in the IP. (azette within the time prescribed by the %egulations. =3.3. Any interested party may inspect the complete description claims and drawings of the patent on file with the .ffice. "Sec. 7A %.A. Co. 74=a# Sec. $3. Contents of Patent The patent shall be issued in the name of the %epublic of the Philippines under the seal of the .ffice and shall be signed by the )irector and registered together with the description claims and drawings if any in books and records of the .ffice. "Secs. 7B and 3> %.A. Co. 74=a#

Sec. $4. Term of Patent The term of a patent shall be twenty "3># years from the filing date of the application. "Sec. 37 %.A. Co. 74=a# Sec. $$. Annual 6ees ==.7. To maintain the patent application or patent an annual fee shall be paid upon the e!piration of four ":# years from the date the application was published pursuant to Section :: hereof and on each subse8uent anniversary of such date. Payment may be

made within three "9# months before the due date. The obligation to pay the annual fees shall terminate should the application be withdrawn refused or cancelled. ==.3. If the annual fee is not paid the patent application shall be deemed withdrawn or the patent considered as lapsed from the day following the e!piration of the period within which the annual fees were due. A notice that the application is deemed withdrawn or the lapse of a patent for non+payment of any annual fee shall be published in the IP. (azette and the lapse shall be recorded in the %egister of the .ffice. ==.9. A grace period of si! "4# months shall be granted for the payment of the annual fee upon payment of the prescribed surcharge for delayed payment. "Sec. 33 %.A. Co. 74=a# Sec. $6. Surrender of Patent =4.7. The owner of the patent with the consent of all persons having grants or licenses or other right title or interest in and to the patent and the invention covered thereby which have been recorded in the .ffice may surrender his patent or any claim or claims forming part thereof to the .ffice for cancellation. =4.3 A person may give notice to the .ffice of his opposition to the surrender of a patent under this section and if he does so the 5ureau shall notify the proprietor of the patent and determine the 8uestion. =4.9. If the .ffice is satisfied that the patent may properly be surrendered he may accept the offer and as from the day when notice of his acceptance is published in the IP. (azette the patent shall cease to have effect but no action for infringement shall lie and no right compensation shall accrue for any use of the patented invention before that day for the services of the government. "Sec. 3: %.A. Co. 74=a#

Sec. $ . Correction of 'istakes of the .ffice The )irector shall have the power to correct without fee any mistake in a patent incurred through the fault of the .ffice when clearly disclosed in the records thereof to make the patent conform to the records. "Sec. 3= %.A. Co. 74=# Sec. $". Correction of 'istake in the Application .n re8uest of any interested person and payment of the prescribed fee the )irector is authorized to correct any mistake in a patent of a formal and clerical nature not incurred through the fault of the .ffice. "Sec. 34 %.A. Co. 74=a#

Sec. $#. Changes in Patents =B.7. The owner of a patent shall have the right to re8uest the 5ureau to make the changes in the patent in order to$ "a# *imit the e!tent of the protection conferred by it& "b# Correct obvious mistakes or to correct clerical errors& and "c# Correct mistakes or errors other than those referred to in letter "b# made in good faith$ Provided That where the change would result in a broadening of the e!tent of protection conferred by the patent no re8uest may be made after the e!piration of two "3# years from the grant of a patent and the change shall not affect the rights of any third party which has relied on the patent as published. =B.3. Co change in the patent shall be permitted under this section where the change would result in the disclosure contained in the patent going beyond the disclosure contained in the application filed. =B.9. If and to the e!tent to which the .ffice changes the patent according to this section it shall publish the same. "n# Sec. 60. 6orm and Publication of Amendment An amendment or correction of a patent shall be accomplished by a certificate of such amendment or correction authenticated by the seal of the .ffice and signed by the )irector which certificate shall be attached to the patent. Cotice of such amendment or correction shall be published in the IP. (azette and copies of the patent kept or furnished by the .ffice shall include a copy of the certificate of amendment or correction. "Sec. 3? %.A. Co. 74=# Chapter VI CANCELLATION O' PATENTS AN% S&BSTIT&TION O' PATENTEE Sec. 61. Cancellation of Patents 47.7. Any interested person may upon payment of the re8uired fee petition to cancel the patent or any claim thereof or parts of the claim on any of the following grounds$ "a# That what is claimed as the invention is not new or patentable& "b# That the patent does not disclose the invention in a manner sufficiently clear

and complete for it to be carried out by any person skilled in the art& or "c# That the patent is contrary to public order or morality. 47.3. Ghere the grounds for cancellation relate to some of the claims or parts of the claim cancellation may be effected to such e!tent only. "Secs. 3A and 3B %.A. Co. 74=a# Sec. 62. %e8uirement of the Petition The petition for cancellation shall be in writing verified by the petitioner or by any person in his behalf who knows the facts specify the grounds upon which it is based include a statement of the facts to be relied upon and filed with the .ffice. Copies of printed publications or of patents of other countries and other supporting documents mentioned in the petition shall be attached thereto together with the translation thereof in /nglish if not in /nglish language. "Sec. 9> %.A. Co. 74=# Sec. 63. Cotice of @earing ,pon filing of a petition for cancellation the )irector of *egal Affairs shall forthwith serve notice of the filing thereof upon the patentee and all persons having grants or licenses or any other right title or interest in and to the patent and the invention covered thereby as appears of record in the .ffice and of notice of the date of hearing thereon on such persons and the petitioner. Cotice of the filing of the petition shall be published in the IP. (azette. "Sec. 97 %.A. Co. 74=a# Sec. 64. Committee of Three In cases involving highly technical issues on motion of any party the )irector of *egal Affairs may order that the petition be heard and decided by a committee composed of the )irector of *egal Affairs as chairman and two "3# members who have the e!perience or e!pertise in the field of technology to which the patent sought to be cancelled relates. The decision of the committee shall be appealable to the )irector (eneral. "n# Sec. 6$. Cancellation of the Patent 4=.7. If the Committee finds that a case for cancellation has been proved it shall order the patent or any specified claim or claims thereof cancelled. 4=.3. If the Committee finds that taking into consideration the amendment made by the patentee during the cancellation proceedings the patent and the invention to which it relates meet the re8uirement of this Act it may decide to maintain the patent as amended$

Provided That the fee for printing of a new patent is paid within the time limit prescribed in the %egulations. 4=.9. If the fee for the printing of a new patent is not paid in due time the patent should be revoked. 4=.:. If the patent is amended under Subsection 4=.3 hereof the 5ureau shall at the same time as it publishes the mention of the cancellation decision publish the abstract representative claims and drawings indicating clearly what the amendments consist of. "n# Sec. 66. /ffect of Cancellation of Patent or Claim The rights conferred by the patent or any specified claim or claims cancelled shall terminate. Cotice of the cancellation shall be published in the IP. (azette. ,nless restrained by the )irector (eneral the decision or order to cancel by )irector of *egal Affairs shall be immediately e!ecutory even pending appeal. "Sec. 93 %.A. Co. 74=a#

Chapter VII RE(E%IES O' A PERSON WIT! A RIG!T TO A PATENT Sec. 6 . Patent Application by Persons Cot @aving the %ight to a Patent 4?.7. If a person referred to in Section 3B other than the applicant is declared by final court order or decision as having the right to the patent such person may within three "9# months after the decision has become final$ "a# Prosecute the application as his own application in place of the applicant& "b# 6ile a new patent application in respect of the same invention& "c# %e8uest that the application be refused& or "d# Seek cancellation of the patent if one has already been issued. 4?.3. The provisions of Subsection 9A.3 shall apply mutatis mutandis to a new application filed under Subsection 4?.7"b#. "n# Sec. 6". %emedies of the True and Actual Inventor If a person who was deprived of the patent without his consent or through fraud is declared by final court order or decision to be the true and actual inventor the court shall order for his substitution as patentee or at the option of the true inventor cancel the

patent and award actual and other damages in his favor if warranted by the circumstances. "Sec. 99 %.A. Co. 74=a# Sec. 6#. Publication of the Court .rder The court shall furnish the .ffice a copy of the order or decision referred to in Sections 4? and 4A which shall be published in the IP. (azette within three "9# months from the date such order or decision became final and e!ecutory and shall be recorded in the register of the .ffice. "n# Sec. 0. Time to 6ile Action in Court The actions indicated in Sections 4? and 4A shall be filed within one "7# year from the date of publication made in accordance with Sections :: and =7 respectively. "n#

Chapter VIII RIG!TS O' PATENTEES AN% IN'RINGE(ENT O' PATENTS Sec. 1. %ights Conferred by Patent ?7.7. A patent shall confer on its owner the following e!clusive rights$ "a# Ghere the sub2ect matter of a patent is a product to restrain prohibit and prevent any unauthorized person or entity from making using offering for sale selling or importing that product& "b# Ghere the sub2ect matter of a patent is a process to restrain prevent or prohibit any unauthorized person or entity from using the process and from manufacturing dealing in using selling or offering for sale or importing any product obtained directly or indirectly from such process. ?7.3. Patent owners shall also have the right to assign or transfer by succession the patent and to conclude licensing contracts for the same. "Sec. 9? %.A. Co. 74=a# Sec. 2. *imitations of Patent %ights The owner of a patent has no right to prevent third parties from performing without his authorization the acts referred to in Section ?7 hereof in the following circumstances$

?3.7 ,sing a patented product which has been put on the market in the Philippines by the owner of the product or with his e!press consent insofar as such use is performed after that product has been so put on the said market& ?3.3. Ghere the act is done privately and on a non+commercial scale or for a non+ commercial purpose$ Provided That it does not significantly pre2udice the economic interests of the owner of the patent& ?3.9. Ghere the act consists of making or using e!clusively for the purpose of e!periments that relate to the sub2ect matter of the patented invention& ?3.:. Ghere the act consists of the preparation for individual cases in a pharmacy or by a medical professional of a medicine in accordance with a medical prescription or acts concerning the medicine so prepared& ?3.=. Ghere the invention is used in any ship vessel aircraft or land vehicle of any other country entering the territory of the Philippines temporarily or accidentally$ Provided That such invention is used e!clusively for the needs of the ship vessel aircraft or land vehicle and not used for the manufacturing of anything to be sold within the Philippines. "Secs. 9A and 9B %.A. Co. 74=a# Sec. 3. Prior ,ser ?9.7. Cotwithstanding Section ?3 hereof any prior user who in good faith was using the invention or has undertaken serious preparations to use the invention in his enterprise or business before the filing date or priority date of the application on which a patent is granted shall have the right to continue the use thereof as envisaged in such preparations within the territory where the patent produces its effect.

?9.3. The right of the prior user may only be transferred or assigned together with his enterprise or business or with that part of his enterprise or business in which the use or preparations for use have been made. "Sec. :> %.A. Co. 74=a# Sec. 4. ,se of Invention by (overnment ?:.7. A (overnment agency or third person authorized by the (overnment may e!ploit the invention even without agreement of the patent owner where$ "a# the public interest in particular national security nutrition health or the development of other sectors as determined by the appropriate agency of the government so re8uires& or

"b# A 2udicial or administrative body has determined that the manner of e!ploitation by the owner of the patent or his licensee is anti+competitive. ?:.3. The use by the (overnment or third person authorized by the (overnment shall be sub2ect mutatis mutandis to the conditions set forth in Sections B= to B? and 7>> to 7>3. "Sec. :7 %.A. Co. 74=a# Sec. $. /!tent of Protection and Interpretation of Claims ?=.7. The e!tent of protection conferred by the patent shall be determined by the claims which are to be interpreted in the light of the description and drawings. ?=.3. 6or the purpose of determining the e!tent of protection conferred by the patent due account shall be taken of elements which are e8uivalent to the elements e!pressed in the claims so that a claim shall be considered to cover not only all the elements as e!pressed therein but also e8uivalents. "n# Sec. 6. Civil Action for Infringement ?4.7. The making using offering for sale selling or importing a patented product or a product obtained directly or indirectly from a patented process or the use of a patented process without the authorization of the patentee constitutes patent infringement. ?4.3. Any patentee or anyone possessing any right title or interest in and to the patented invention whose rights have been infringed may bring a civil action before a court of competent 2urisdiction to recover from the infringer such damages sustained thereby plus attorney;s fees and other e!penses of litigation and to secure an in2unction for the protection of his rights.

?4.9. If the damages are inade8uate or cannot be readily ascertained with reasonable certainty the court may award by way of damages a sum e8uivalent to reasonable royalty. ?4.:. The court may according to the circumstances of the case award damages in a sum above the amount found as actual damages sustained$ Provided That the award does not e!ceed three "9# times the amount of such actual damages. ?4.=. The court may in its discretion order that the infringing goods materials and implements predominantly used in the infringement be disposed of outside the channels of commerce or destroyed without compensation.

?4.4. Anyone who actively induces the infringement of a patent or provides the infringer with a component of a patented product or of a product produced because of a patented process knowing it to be especially adopted for infringing the patented invention and not suitable for substantial non+infringing use shall be liable as a contributory infringer and shall be 2ointly and severally liable with the infringer. "Sec. :3 %.A. Co. 74=a# Sec. . Infringement Action by a 6oreign Cational

Any foreign national or 2uridical entity who meets the re8uirements of Section 9 and not engaged in business in the Philippines to which a patent has been granted or assigned under this Act may bring an action for infringement of patent whether or not it is licensed to do business in the Philippines under e!isting law. "Sec. :7+A %.A. Co. 74=a# Sec. ". Process Patents& 5urden of Proof If the sub2ect matter of a patent is a process for obtaining a product any identical product shall be presumed to have been obtained through the use of the patented process if the product is new or there is substantial likelihood that the identical product was made by the process and the owner of the patent has been unable despite reasonable efforts to determine the process actually used. In ordering the defendant to prove that the process to obtain the identical product is different from the patented process the court shall adopt measures to protect as far as practicable his manufacturing and business secrets. "n# Sec. #. *imitation of Action for )amages Co damages can be recovered for acts of infringement committed more than four ":# years before the institution of the action for infringement. "Sec. :9 %.A. Co. 74=#

Sec. "0. )amages& %e8uirement of Cotice )amages cannot be recovered for acts of infringement committed before the infringer had known& or had reasonable grounds to know of the patent. It is presumed that the infringer had known of the patent if on the patented product or on the container or package in which the article is supplied to the public or on the advertising material relating to the patented product or process are placed the words -Philippine Patent- with the number of the patent. "Sec. :: %.A. Co. 74=a# Sec. "1. )efenses in Action for Infringement

In an action for infringement the defendant in addition to other defenses available to him may show the invalidity of the patent or any claim thereof on any of the grounds on which a petition of cancellation can be brought under Section 47 hereof. "Sec. := %.A. Co. 74=# Sec. "2. Patent 6ound Invalid 'ay be Cancelled In an action for infringement if the court shall find the patent or any claim to be invalid it shall cancel the same and the )irector of *egal Affairs upon receipt of the final 2udgment of cancellation by the court shall record that fact in the register of the .ffice and shall publish a notice to that effect in the IP. (azette. "Sec. :4 %.A. Co. 74=a# Sec. "3. Assessor in Infringement Action A9.7. Two "3# or more assessors may be appointed by the court. The assessors shall be possessed of the necessary scientific and technical knowledge re8uired by the sub2ect matter in litigation. /ither party may challenge the fitness of any assessor proposed for appointment. A9.3. /ach assessor shall receive a compensation in an amount to be fi!ed by the court and advanced by the complaining party which shall be awarded as part of his costs should he prevail in the action. "Sec. :? %.A. Co. 74=a# Sec. "4. Criminal Action for %epetition of Infringement If infringement is repeated by the infringer or by anyone in connivance with him after finality of the 2udgment of the court against the infringer the offenders shall without pre2udice to the institution of a civil action for damages be criminally liable therefor and upon conviction shall suffer imprisonment for the period of not less than si! "4# months but not more than three "9# years andHor a fine of not less than .ne hundred thousand pesos "PhP 7>> >>># but not more than Three hundred thousand pesos "Php 9>> >>># at the discretion of the court. The criminal action herein provided shall prescribed in three "9# years from date of the commission of the crime. "Sec. :A %.A. Co. 74=a#

Chapter I) VOL&NTARY LICENSING

Sec. "$. 1oluntary *icense Contract To encourage the transfer and dissemination of technology prevent or control practices and conditions that may in particular cases constitute an abuse of intellectual property rights having an adverse effect on competition and trade all technology transfer arrangements shall comply with the provisions of this Chapter. "n# Sec. "6. Iurisdiction to Settle )isputes on %oyalties The )irector of the )ocumentation Information and Technology Transfer 5ureau shall e!ercise 8uasi+2udicial 2urisdiction in the settlement of disputes between parties to a technology transfer arrangement arising from technology transfer payments including the fi!ing of appropriate amount or rate of royalty. "n# Sec. " . Prohibited Clauses /!cept in cases under Section B7 the following provisions shall be deemed prima facie to have an adverse on competition and trade$ A?.7. Those which impose upon the licensee the obligation to ac8uire from a specific source capital goods intermediate products raw materials and other technologies or of permanently employing personnel indicated by the licensor& A?.3. Those pursuant to which the licensor reserves the right to fi! the sale or resale prices of the products manufactured on the basis of the license& A?.9. Those that contain restrictions regarding the volume and structure of production& A?.: Those that prohibit the use of competitive technologies in a non+e!clusive technology transfer agreement& A?.=. Those that establish a full or partial purchase option in favor of the licensor& A?.4. Those that obligate the licensee to transfer for free to the licensor the inventions or improvements that may be obtained through the use of the licensed technology& A?.?. Those that re8uire payment of royalties to the owners of patents for patents which are not used& A?.A. Those that prohibit the licensee to e!port the licensed product unless 2ustified for the protection of the legitimate interest of the licensor such as e!ports to countries where e!clusive licenses to manufacture andHor distribute the licensed product"s# have already been granted&

A?.B. Those which restrict the use of the technology supplied after the e!piration of the technology transfer arrangement e!cept in cases of early termination of the technology transfer arrangement due to reason"s# attributable to the licensee& A?.7>. Those which re8uire payments for patents and other industrial property rights after their e!piration termination arrangement& A?.77. Those which re8uire that the technology recipient shall not contest the validity of any of the patents of the technology supplier& A?.73. Those which restrict the research and development activities of the licensee designed to absorb and adapt the transferred technology to local conditions or to initiate research and development programs in connection with new products processes or e8uipment& A?.79. Those which prevent the licensee from adapting the imported technology to local conditions or introducing innovation to it as long as it does not impair the 8uality standards prescribed by the licensor& A?.7:. Those which e!empt the licensor for liability for non+fulfillment of his responsibilities under the technology transfer arrangement andHor liability arising from third party suits brought about by the use of the licensed product or the licensed technology& and A?.7=. .ther clauses with e8uivalent effects. "Sec. 99+C"3# %A 74=a# Sec. "". 'andatory Provisions The following provisions shall be included in voluntary license contracts$ AA.7. That the laws of the Philippines shall govern the interpretation of the same and in the event of litigation the venue shall be the proper court in the place where the licensee has its principal office& AA.3. Continued access to improvements in techni8ues and processes related to the technology shall be made available during the period of the technology transfer arrangement& AA.9. In the event the technology transfer arrangement shall provide for arbitration the Procedure of Arbitration of the Arbitration *aw of the Philippines or the Arbitration %ules of the ,nited Cations Commission on International Trade *aw ",CCIT%A*# or the %ules of Conciliation and Arbitration of the International Chamber of Commerce "ICC# shall apply and the venue of arbitration shall be the Philippines or any neutral country& and AA.:. The Philippine ta!es on all payments relating to the technology transfer arrangement shall be borne by the licensor. "n#

SEC. "#. %ights of *icensor In the absence of any provision to the contrary in the technology transfer arrangement the grant of a license shall not prevent the licensor from granting further licenses to third person nor from e!ploiting the sub2ect matter of the technology transfer arrangement himself. "Sec. 99+5 %.A. 74=a# SEC. #0. %ights of *icensee The licensee shall be entitled to e!ploit the sub2ect matter of the technology transfer arrangement during the whole term of the technology transfer arrangement. "Sec. 99+C "7# %.A. 74=a# SEC. #1. /!ceptional Cases In e!ceptional or meritorious cases where substantial benefits will accrue to the economy such as high technology content increase in foreign e!change earnings employment generation regional dispersal of industries andHor substitution with or use of local raw materials or in the case of 5oard of Investments registered companies with pioneer status e!emption from any of the above re8uirements may be allowed by the )ocumentation Information and Technology Transfer 5ureau after evaluation thereof on a case by case basis. "n# SEC. #2. Con+%egistration with the )ocumentation Information and Technology Transfer 5ureau Technology transfer arrangements that conform with the provisions of Sections A4 and A? need not be registered with the )ocumentation Information and Technology Transfer 5ureau. Con+conformance with any of the provisions of Sections A? and AA however shall automatically render the technology transfer arrangement unenforceable unless said technology transfer arrangement is approved and registered with the )ocumentation Information and Technology Transfer 5ureau under the provisions of Section B7 on e!ceptional cases. "n#

Chapter ) CO(P&LSORY LICENSING

SEC. #3. (rounds for Compulsory *icensing The )irector of *egal Affairs may grant a license to e!ploit a patented invention even without the agreement of the patent owner in favor of any person who has shown his capability to e!ploit the invention under any of the following circumstances$ B9.7. Cational emergency or other circumstances of e!treme urgency& B9.3. Ghere the public interest in particular national security nutrition health or the development of other vital sectors of the national economy as determined by the appropriate agency of the (overnment so re8uires& or B9.9. Ghere a 2udicial or administrative body has determined that the manner of e!ploitation by the owner of the patent or his licensee is anti+competitive& or B9.:. In case of public non+commercial use of the patent by the patentee without satisfactory reason& B9.=. If the patented invention is not being worked in the Philippines on a commercial scale although capable of being worked without satisfactory reason$ Provided That the importation of the patented article shall constitute working or using the patent. "Secs. 9: 9:+A 9:+5 %.A. Co. 74=a# SEC. #4. Period for 6iling a Petition for a Compulsory *icense B:.7. A compulsory license may not be applied for on the ground stated in Subsection B9.= before the e!piration of a period of four ":# years from the date of filing of the application or three "9# years from the date of the patent whichever period e!pires last. B:.3. A compulsory license which is applied for on any of the grounds stated in Subsections B9.3 B9.9 and B9.: and Section B? may be applied for at any time after the grant of the patent. "Sec. 9:"7# %.A. Co. 74=# SEC. #$. %e8uirement to .btain a *icense on %easonable Commercial Terms B=.7. The license will only be granted after the petitioner has made efforts to obtain authorization from the patent owner on reasonable commercial terms and conditions but such efforts have not been successful within a reasonable period of time. B=.3. The re8uirement under Subsection B=.7 shall not apply in the following cases$ "a# Ghere the petition for compulsory license seeks to remedy a practice determined after 2udicial or administrative process to be anti+competitive&

"b# In situations of national emergency or other circumstances of e!treme urgency& "c# In cases of public non+commercial use. B=.9. In situations of national emergency or other circumstances of e!treme urgency the right holder shall be notified as soon as reasonably practicable. B=.:. In the case of public non+commercial use where the government or contractor without making a patent search knows or has demonstrable grounds to know that a valid patent is or will be used by or for the government the right holder shall be informed promptly. "n# SEC. #6. Compulsory *icensing of Patents Involving Semi+Conductor Technology In the case of compulsory licensing of patents involving semi+conductor technology the license may only be granted in case of public non+commercial use or to remedy a practice determined after 2udicial or administrative process to be anti+competitive. "n# SEC. # . Compulsory *icense 5ased on Interdependence of Patents If the invention protected by a patent hereafter referred to as the -second patent within the country cannot be worked without infringing another patent hereafter referred to as the -first patent - granted on a prior application or benefiting from an earlier priority a compulsory license may be granted to the owner of the second patent to the e!tent necessary for the working of his invention sub2ect to the following conditions$ B?.7. The invention claimed in the second patent involves an important technical advance of considerable economic significance in relation to the first patent& B?.3. The owner of the first patent shall be entitled to a cross+license on reasonable terms to use the invention claimed in the second patent& B?.9. The use authorized in respect of the first patent shall be non+assignable e!cept with the assignment of the second patent& and B?.:. The terms and conditions of Sections B= B4 and BA to 7>> of this Act. "Sec. 9:+ C %.A. Co. 74=a# SEC. #". 6orm and Contents of Petition The petition for compulsory licensing must be in writing verified by the petitioner and accompanied by payment of the re8uired filing fee. It shall contain the name and address of the petitioner as well as those of the respondents the number and date of issue

of the patent in connection with which compulsory license is sought the name of the patentee the title of the invention the statutory grounds upon which compulsory license is sought the ultimate facts constituting the petitionerFs cause of action and the relief prayed for. "Sec. 9:+) %.A. Co. 74=# SEC. ##. Cotice of @earing BB.7. ,pon filing of a petition the )irector of *egal Affairs shall forthwith serve notice of the filing thereof upon the patent owner and all persons having grants or licenses or any other right title or interest in and to the patent and invention covered thereby as appears of record in the .ffice and of notice of the date of hearing thereon on such persons and petitioner. The resident agent or representative appointed in accordance with Section 99 hereof shall be bound to accept service of notice of the filing of the petition within the meaning of this Section. BB.3. In every case the notice shall be published by the said .ffice in a newspaper of general circulation once a week for three "9# consecutive weeks and once in the IP. (azette at applicant;s e!pense. "Sec. 9:+/ %.A. Co. 74=# SEC. 100. Terms and Conditions of Compulsory *icense The basic terms and conditions including the rate of royalties of a compulsory license shall be fi!ed by the )irector of *egal Affairs sub2ect to the following conditions$ 7>>.7. The scope and duration of such license shall be limited to the purpose for which it was authorized& 7>>.3. The license shall be non+e!clusive& 7>>.9. The license shall be non+assignable e!cept with that part of the enterprise or business with which the invention is being e!ploited& 7>>.:. ,se of the sub2ect matter of the license shall be devoted predominantly for the supply of the Philippine market$ Provided That this limitation shall not apply where the grant of the license is based on the ground that the patentee;s manner of e!ploiting the patent is determined by 2udicial or administrative process to be anti+competitive. 7>>.=. The license may be terminated upon proper showing that circumstances which led to its grant have ceased to e!ist and are unlikely to recur$ Provided That ade8uate protection shall be afforded to the legitimate interest of the licensee& and 7>>.4. The patentee shall be paid ade8uate remuneration taking into account the economic value of the grant or authorization e!cept that in cases where the license was granted to remedy a practice which was determined after 2udicial or administrative

process to be anti+competitive the need to correct the anti+competitive practice may be taken into account in fi!ing the amount of remuneration. "Sec. 9=+5 %.A. Co. 74=a# SEC. 101. Amendment Cancellation Surrender of Compulsory *icense 7>7.7. ,pon the re8uest of the patentee or the licensee the )irector of *egal Affairs may amend the decision granting the compulsory license upon proper showing of new facts or circumstances 2ustifying such amendment. 7>7.3. ,pon the re8uest of the patentee the said )irector may cancel the compulsory license$ "a# If the ground for the grant of the compulsory license no longer e!ists and is unlikely to recur& "b# if the licensee has neither begun to supply the domestic market nor made serious preparation therefor& "c# if the licensee has not complied with the prescribed terms of the license& 7>7.9. The licensee may surrender the license by a written declaration submitted to the .ffice. 7>7.:. The said )irector shall cause the amendment surrender or cancellation in the %egister notify the patentee andHor the licensee and cause notice thereof to be published in the IP. (azette. "Sec. 9=+) %.A. Co. 74=a# SEC. 102. *icensee;s /!emption from *iability Any person who works a patented product substance andHor process under a license granted under this Chapter shall be free from any liability for infringement$ Provided however That in the case of voluntary licensing no collusion with the licensor is proven. This is without pre2udice to the right of the rightful owner of the patent to recover from the licensor whatever he may have received as royalties under the license. "Sec. 9=+/ %.A. Co. 74=a#

Chapter )I ASSIGN(ENT AN% TRANS(ISSION O' RIG!TS SEC. 103. Transmission of %ights

7>9.7 Patents or applications for patents and invention to which they relate shall be protected in the same way as the rights of other property under the Civil Code. 7>9.3. Inventions and any right title or interest in and to patents and inventions covered thereby may be assigned or transmitted by inheritance or be8uest or may be the sub2ect of a license contract. "Sec. => %.A. Co. 74=a# Sec. 104. Assignment of Inventions An assignment may be of the entire right title or interest in and to the patent and the invention covered thereby or of an undivided share of the entire patent and invention in which event the parties become 2oint owners thereof. An assignment may be limited to a specified territory. "Sec. =7 %.A. Co. 74=# Sec. 10$. 6orm of Assignment The assignment must be in writing acknowledged before a notary public or other officer authorized to administer oath or perform notarial acts and certified under the hand and official seal of the notary or such other officer. "Sec. =3 %.A. Co. 74=# Sec. 106. %ecording 7>4.7. The .ffice shall record assignments licenses and other instruments relating to the transmission of any right title or interest in and to inventions and patents or application for patents or inventions to which they relate which are presented in due form to the .ffice for registration in books and records kept for the purpose. The original documents together with a signed duplicate thereof shall be filed and the contents thereof should be kept confidential. If the original is not available an authenticated copy thereof in duplicate may be filed. ,pon recording the .ffice shall retain the duplicate return the original or the authenticated copy to the party who filed the same and notice of the recording shall be published in the IP. (azette. 7>4.3. Such instruments shall be void as against any subse8uent purchaser or mortgagee for valuable consideration and without notice unless it is so recorded in the .ffice within three "9# months from the date of said instrument or prior to the subse8uent purchase or mortgage. "Sec. =9 %.A. Co. 74=a# Sec. 10 . %ights of Ioint .wners If two "3# or more persons 2ointly own a patent and the invention covered thereby either by the issuance of the patent in their 2oint favor or by reason of the assignment of an undivided share in the patent and invention or by reason of the succession in title to

such share each of the 2oint owners shall be entitled to personally make use sell or import the invention for his own profit$ Provided however That neither of the 2oint owners shall be entitled to grant licenses or to assign his right title or interest or part thereof without the consent of the other owner or owners or without proportionally dividing the proceeds with such other owner or owners. "Sec. =: %.A. Co. 74=#

Chapter )II REGISTRATION O' &TILITY (O%ELS Sec. 10". Applicability of Provisions %elating to Patents 7>A.7. Sub2ect to Section 7>B the provisions governing patents shall apply mutatis mutandis to the registration of utility models. 7>A.3. Ghere the right to a patent conflicts with the right to a utility model registration in the case referred to in Section 3B the said provision shall apply as if the word -patent- were replaced by the words -patent or utility model registration.- "Sec. == %.A. Co. 74=a# Sec. 10#. Special Provisions %elating to ,tility 'odels 7>B.7 "a# An invention 8ualifies for registration as a utility model if it is new and industrially applicable. "b# Section 37 -Patentable Inventions- shall apply e!cept the reference to inventive step as a condition of protection.

7>B.3. Sections :9 to :B shall not apply in the case of applications for registration of a utility model. 7>B.9. A utility model registration shall e!pire without any possibility of renewal at the end of the seventh year after the date of the filing of the application. 7>B.:. In proceedings under Sections 47 to 4: the utility model registration shall be canceled on the following grounds$ "a# That the claimed invention does not 8ualify for registration as a utility model and does not meet the re8uirements of registrability in particular having regard to Subsection 7>B.7 and Sections 33 39 3: and 3?&

"b# That the description and the claims do not comply with the prescribed re8uirements& "c# That any drawing which is necessary for the understanding of the invention has not been furnished& "d# That the owner of the utility model registration is not the inventor or his successor in title. "Secs. == =4 and =? %.A. Co. 74=a#

SEC. 110. Conversion of Patent Applications or Applications for ,tility 'odel %egistration 77>.7. At any time before the grant or refusal of a patent an applicant for a patent may upon payment of the prescribed fee convert his application into an application for registration of a utility model which shall be accorded the filing date of the initial application. An application may be converted only once. 77>.3. At any time before the grant or refusal of a utility model registration an applicant for a utility model registration may upon payment of the prescribed fee convert his application into a patent application which shall be accorded the filing date of the initial application. "Sec. =A %.A. Co. 74=a#

SEC. 111. Prohibition against 6iling of Parallel Applications An applicant may not file two "3# applications for the same sub2ect one for utility model registration and the other for the grant of a patent whether simultaneously or consecutively. "Sec. =B %.A. Co. 74=a#

Chapter )III IN%&STRIAL %ESIGN SEC. 112. )efinition of Industrial )esign An industrial design is any composition of lines or colors or any three+dimensional form whether or not associated with lines or colors& Provided That such composition or form gives a special appearance to and can serve as pattern for an industrial product or handicraft. "Sec. == %.A. Co. 74=a# Sec. 113. Substantive Conditions for Protection

779.7. .nly industrial designs that are new or original shall benefit from protection under this Act. 779.3. Industrial designs dictated essentially by technical or functional considerations to obtain a technical result or those that are contrary to public order health or morals shall not be protected. "n# SEC. 114. Contents of the Application 77:.7. /very application for registration of an industrial design shall contain$ "a# A re8uest for registration of the industrial design& "b# Information identifying the applicant& "c# An indication of the kind of article of manufacture or handicraft to which the design shall be applied& "d# A representation of the article of manufacture or handicraft by way of drawings photographs or other ade8uate graphic representation of the design as applied to the article of manufacture or handicraft which clearly and fully discloses those features for which design protection is claimed& and "e# The name and address of the creator or where the applicant is not the creator a statement indicating the origin of the right to the industrial design registration. 77:.3. The application may be accompanied by a specimen of the article embodying the industrial design and shall be sub2ect to the payment of the prescribed fee."n# SEC. 11$. Several Industrial )esigns in .ne Application Two "3# or more industrial designs may be the sub2ect of the same application$ Provided That they relate to the same sub+class of the International Classification or to the same set or composition of articles. "n# SEC. 116. /!amination 774.7. The .ffice shall accord as the filing date the date of receipt of the application containing indications allowing the identity of the applicant to be established and a representation of the article embodying the industrial design or a pictorial representation thereof. 774.3. If the application does not meet these re8uirements the filing date should be that date when all the elements specified in Section 7>= are filed or the mistakes corrected. .therwise if the re8uirements are not complied within the prescribed period the application shall be considered withdrawn.

774.9. After the application has been accorded a filing date and the re8uired fees paid on time the applicant shall comply with the re8uirements of Section 77: within the prescribed period otherwise the application shall be considered withdrawn. 774.:. The .ffice shall e!amine whether the industrial design complies with re8uirements of Section 773 and Subsections 779.3 and 779.9. "n# SEC. 11 . %egistration 77?.7. Ghere the .ffice finds that the conditions referred to in Section 779 are fulfilled it shall order that registration be effected in the industrial design register and cause the issuance of an industrial design certificate of registration& otherwise it shall refuse the application. 77?.3. The form and contents of an industrial design certificate shall be established by the %egulations$ Provided That the name and address of the creator shall be mentioned in every case. 77?.9. %egistration shall be published in the form and within the period fi!ed by the %egulations. 77?.:. The .ffice shall record in the register any change in the identity of the proprietor of the industrial design or his representative if proof thereof is furnished to it. A fee shall be paid with the re8uest to record the change in the identity of the proprietor. If the fee is not paid the re8uest shall be deemed not to have been filed. In such case the former proprietor and the former representative shall remain sub2ect to the rights and obligations as provided in this Act. 77?.=. Anyone may inspect the %egister and the files of registered industrial designs including the files of cancellation proceedings. "n#

SEC. 11". The Term of Industrial )esign %egistration 77A.7. The registration of an industrial design shall be for a period of five "=# years from the filing date of the application. 77A.3. The registration of an industrial design may be renewed for not more than two "3# consecutive periods of five "=# years each by paying the renewal fee. 77A.9. The renewal fee shall be paid within twelve "73# months preceding the e!piration of the period of registration. @owever a grace period of si! "4# months shall be granted for payment of the fees after such e!piration upon payment of a surcharge.

77A.:. The %egulations shall fi! the amount of renewal fee the surcharge and other re8uirements regarding the recording of renewals of registration.

SEC. 11#. Application of .ther Sections and Chapters 77B.7. The following provisions relating to patents shall apply mutatis mutandis to an industrial design registration$ Section 37 + Covelty& Section 3: + Prior art& Provided That the disclosure is contained in printed documents or in any tangible form& Section 3= + Con+pre2udicial )isclosure& Section 3? + Inventions Created Pursuant to a Commission& Section 3A + %ight to a Patent& Section 3B + 6irst to 6ile %ule& Section 97 + %ight of Priority$ Provided That the application for industrial design shall be filed within si! "4# months from the earliest filing date of the corresponding foreign application& Section 99 + Appointment of Agent or %epresentative& Section =7 + %efusal of the Application& Sections =4 to 4> + Surrender Correction of and Changes in Patent& Chapter 1II + %emedies of a Person with a %ight to Patent& Chapter 1III + %ights of Patentees and Infringement of Patents& and Chapter 0I + Assignment and Transmission of %ights.

77B.3. If the essential elements of an industrial design which is the sub2ect of an application have been obtained from the creation of another person without his consent protection under this Chapter cannot be invoked against the in2ured party."n#

SEC. 120. Cancellation of )esign %egistration 73>.7. At any time during the term of the industrial design registration any person upon payment of the re8uired fee may petition the )irector of *egal Affairs to cancel the industrial design on any of the following grounds$ "a# If the sub2ect matter of the industrial design is not registrable within the terms of Sections 773 and 779& "b# If the sub2ect matter is not new& or "c# If the sub2ect matter of the industrial design e!tends beyond the content of the application as originally filed.

73>.3. Ghere the grounds for cancellation relate to a part of the industrial design cancellation may be effected to such e!tent only. The restriction may be effected in the form of an alteration of the effected features of the design. "n# PART III

THE LAW ON TRADEMARKS, SERVICE MARKS AND TRADE NAMES

SEC. 121. Definitions As used in Part III, the following terms have the following meanings: 121.1. "Mark" means any visible sign a!able of distinguishing the goods "trademark# or servi es "servi e mark# of an enter!rise and shall in lude a stam!ed or marked ontainer of goods$ "%e . &', (.A. )o. 1**a# 121.2. "+olle tive mark" means any visible sign designated as su h in the a!!li ation for registration and a!able of distinguishing the origin or any other ommon hara teristi , in luding the ,uality of goods or servi es of different enter!rises whi h use the sign under the ontrol of the registered owner of the olle tive mark$ "%e . -., (.A. )o. 1**a# 121.&. "/rade name" means the name or designation identifying or distinguishing an enter!rise$ "%e . &', (.A. )o. 1**a# 121.-. "0ureau" means the 0ureau of /rademarks$ 121.1. "2ire tor" means the 2ire tor of /rademarks$ 121.*. "(egulations" means the (ules of Pra ti e in /rademarks and %ervi e Marks formulated by the 2ire tor of /rademarks and a!!roved by the 2ire tor 3eneral$ and 121.4. "56aminer" means the trademark e6aminer. "%e . &', (.A. )o. 1**a#

SEC. 122. How Marks are Acquired /he rights in a mark shall be a ,uired through registration made validly in a ordan e with the !rovisions of this law. "%e . 27A, (.A. )o. 1**a# SEC. 123. Registrabilit 12&.1. A mark annot be registered if it: "a# +onsists of immoral, de e!tive or s andalous matter, or matter whi h may dis!arage or falsely suggest a onne tion with !ersons, living or dead, institutions, beliefs, or national symbols, or bring them into ontem!t or disre!ute$

"b# +onsists of the flag or oat of arms or other insignia of the Phili!!ines or any of its !oliti al subdivisions, or of any foreign nation, or any simulation thereof$ " # +onsists of a name, !ortrait or signature identifying a !arti ular living individual e6 e!t by his written onsent, or the name, signature, or !ortrait of a de eased President of the Phili!!ines, during the life of his widow, if any, e6 e!t by written onsent of the widow$ "d# Is identi al with a registered mark belonging to a different !ro!rietor or a mark with an earlier filing or !riority date, in res!e t of: "i# /he same goods or servi es, or "ii# +losely related goods or servi es, or "iii# If it nearly resembles su h a mark as to be likely to de eive or onfusion$

ause

"e# Is identical with or confusingly similar to or constitutes a translation of a mark which is onsidered by the competent authority of the Philippines to be well+known internationally and in the Philippines whether or not it is registered here as being already the mark of a person other than the applicant for registration and used for identical or similar goods or services$ Provided That in determining whether a mark is well+known account shall be taken of the knowledge of the relevant sector of the public rather than of the public at large including knowledge in the Philippines which has been obtained as a result of the promotion of the mark&
"f# "f# Is identi al with, or onfusingly similar to, or onstitutes a translation of a mark onsidered well7known in a ordan e with the !re eding !aragra!h, whi h is registered in the Phili!!ines with res!e t to goods or servi es whi h are not similar to those with res!e t to whi h registration is a!!lied for: Provided, /hat use of the mark in relation to those goods or servi es would indi ate a onne tion between those goods or servi es, and the owner of the registered mark: Provided further, /hat the interests of the owner of the registered mark are likely to be damaged by su h use$ "g# Is likely to mislead the !ubli , !arti ularly as to the nature, ,uality, hara teristi s or geogra!hi al origin of the goods or servi es$ "h# +onsists e6 lusively of signs that are generi for the goods or servi es that they seek to identify$ "i# +onsists e6 lusively of signs or of indi ations that have be ome ustomary or usual to designate the goods or servi es in everyday language or in bona fide and established trade !ra ti e$ "8# +onsists e6 lusively of signs or of indi ations that may serve in trade to designate the kind, ,uality, ,uantity, intended !ur!ose, value, geogra!hi al origin, time or !rodu tion of the goods or rendering of the servi es, or other hara teristi s of the goods or servi es$ "k# +onsists of sha!es that may be ne essitated by te hni al fa tors or by the nature of the goods themselves or fa tors that affe t their intrinsi value$ "l# +onsists of olor alone, unless defined by a given form$ or "m# Is ontrary to !ubli order or morality. 12&.2. As regards signs or devi es mentioned in !aragra!hs "8#, "k#, and "l#, nothing shall !revent the registration of any su h sign or devi e whi h has be ome distin tive in relation to the goods for whi h registration is re,uested as a result of the use that have been made of it in ommer e in the Phili!!ines. /he 9ffi e may a e!t as !rima fa ie eviden e that the mark has be ome distin tive, as used in onne tion with the a!!li ant:s goods or servi es in ommer e, !roof of substantially e6 lusive and ontinuous use thereof by the a!!li ant in ommer e in the Phili!!ines for five "1# years before the date on whi h the laim of distin tiveness is made.

12&.&. /he nature of the goods to whi h the mark is a!!lied will not onstitute an obsta le to registration. "%e . -, (.A. )o. 1**a#

SEC. 12!. Require"ents of A##lication 12-.1. /he a!!li ation for the registration of the mark shall be in ;ili!ino or in 5nglish and shall ontain the following: "a# A re,uest for registration$ "b# /he name and address of the a!!li ant$ " # /he name of a %tate of whi h the a!!li ant is a national or where he has domi ile$ and the name of a %tate in whi h the a!!li ant has a real and effe tive industrial or ommer ial establishment, if any$ "d# <here the a!!li ant is a 8uridi al entity, the law under whi h it is organi=ed and e6isting$ "e# /he a!!ointment of an agent or re!resentative, if the a!!li ant is not domi iled in the Phili!!ines$ "f# <here the a!!li ant laims the !riority of an earlier a!!li ation, an indi ation of: "i# /he name of the %tate with whose national offi e the earlier a!!li ation was filed or it was filed with an offi e other than a national offi e, the name of that offi e, "ii# /he date on whi h the earlier a!!li ation was filed, and "iii# <here available, the a!!li ation number of the earlier a!!li ation$

"g# Ghere the applicant claims color as a distinctive feature of the mark a statement to that effect as well as the name or names of the color or colors claimed and an indication in respect of each color of the principal parts of the mark which are in that color&
"h# <here the mark is a three7dimensional mark, a statement to that effe t$ "i# 9ne or more re!rodu tions of the mark, as !res ribed in the (egulations$ "8# A transliteration or translation of the mark or of some !arts of the mark, as !res ribed in the (egulations$ "k# /he names of the goods or servi es for whi h the registration is sought, grou!ed a ording to the lasses of the )i e +lassifi ation, together with the number of the lass of the said +lassifi ation to whi h ea h grou! of goods or servi es belongs$ and "l# A signature by, or other self7identifi ation of, the a!!li ant or his re!resentative. 12-.2. /he a!!li ant or the registrant shall file a de laration of a tual use of the mark with eviden e to that effe t, as !res ribed by the (egulations within three "&# years from the filing date of the a!!li ation. 9therwise, the a!!li ation shall be refused or the mark shall be removed from the (egister by the 2ire tor. 12-.&. 9ne "1# a!!li ation may relate to several goods and>or servi es, whether they belong to one "1# lass or to several lasses of the )i e +lassifi ation. 12-.-. If during the e6amination of the a!!li ation, the 9ffi e finds fa tual basis to reasonably doubt the vera ity of any indi ation or element in the a!!li ation, it may re,uire the a!!li ant to submit suffi ient eviden e to remove the doubt. "%e . 1, (.A. )o. 1**a#

SEC. 12$. Re#resentation% Address for Ser&ice

If the a!!li ant is not domi iled or has no real and effe tive ommer ial establishment in the Phili!!ines, he shall designate by a written do ument filed in the offi e, the name and address of a Phili!!ine resident who may be served noti es or !ro ess in !ro eedings affe ting the mark. %u h noti es or servi es may be served u!on the !erson so designated by leaving a o!y thereof at the address s!e ified in the last designation filed. If the !erson so designated annot be found at the address given in the last designation, su h noti e or !ro ess may be served u!on the 2ire tor. "%e . &, (.A. )o. 1**a#

SEC. 12'. Disclai"ers /he 9ffi e may allow or re,uire the a!!li ant to dis laim an unregistrable om!onent of an otherwise registrable mark but su h dis laimer shall not !re8udi e or affe t the a!!li ant:s or owner:s rights then e6isting or thereafter arising in the dis laimed matter, nor su h shall dis laimer !re8udi e or affe t the a!!li ant:s or owner:s right on another a!!li ation of later date if the dis laimed matter be ame distin tive of the a!!li ant:s or owner:s goods, business or servi es. "%e . 1&, (.A. )o. 1**a#

SEC. 12(. )iling Date 124.1. (e,uirements. 7 /he filing date of an a!!li ation shall be the date on whi h the 9ffi e re eived the following indi ations and elements in 5nglish or ;ili!ino: "a# "b# " # "d# "e# An e6!ress or im!li it indi ation that the registration of a mark is sought$ /he identity of the a!!li ant$ Indi ations suffi ient to onta t the a!!li ant or his re!resentative, if any$ A re!rodu tion of the mark whose registration is sought$ and /he list of the goods or servi es for whi h the registration is sought.

124.2 )o filing date shall be a orded until the re,uired fee is !aid. "n#

SEC. 12*. Single Registration for +oods and,or Ser&ices <here goods and>or servi es belonging to several lasses of the )i e +lassifi ation have been in luded in one "1# a!!li ation, su h an a!!li ation shall result in one registration. "n#

SEC. 12-. Di&ision of A##lication Any a!!li ation referring to several goods or servi es, hereafter referred to as the "initial a!!li ation," may be divided by the a!!li ant into two "2# or more a!!li ations, hereafter referred to as the "divisional a!!li ations," by distributing among the latter the goods or servi es referred to in the initial a!!li ation. /he divisional a!!li ations shall !reserve the filing date of the initial a!!li ation or the benefit of the right of !riority. "n#

SEC. 13.. Signature and /t0er Means of Self12dentification 1&..1. <here a signature is re,uired, the 9ffi e shall a e!t: "a# A hand7written signature$ or

"b# /he use of other forms of signature, su h as a !rinted or stam!ed signature, or the use of a seal, instead of a hand7written signature: Provided, /hat where a seal is used, it should be a om!anied by an indi ation in letters of the name of the signatory. 1&..2. /he 9ffi e shall a e!t ommuni ations to it by tele o!ier, or by ele troni means sub8e t to the onditions or re,uirements that will be !res ribed by the (egulations. <hen ommuni ations are made by telefa simile, the re!rodu tion of the signature, or the re!rodu tion of the seal together with, where re,uired, the indi ation in letters of the name of the natural !erson whose seal is used, a!!ears. /he original ommuni ations must be re eived by the 9ffi e within thirty "&.# days from date of re ei!t of the telefa simile. 1&..&. )o attestation, notari=ation, authenti ation, legali=ation or other ertifi ation of any signature or other means of self7identifi ation referred to in the !re eding !aragra!hs, will be re,uired, e6 e!t, where the signature on erns the surrender of a registration. "n# Sec. 131. 3riorit Rig0t 1&1.1. An a!!li ation for registration of a mark filed in the Phili!!ines by a !erson referred to in %e tion &, and who !reviously duly filed an a!!li ation for registration of the same mark in one of those ountries, shall be onsidered as filed as of the day the a!!li ation was first filed in the foreign ountry. 1&1.2. )o registration of a mark in the Phili!!ines by a !erson des ribed in this se tion shall be granted until su h mark has been registered in the ountry of origin of the a!!li ant. 1&1.&. )othing in this se tion shall entitle the owner of a registration granted under this se tion to sue for a ts ommitted !rior to the date on whi h his mark was registered in this ountry: Provided, /hat, notwithstanding the foregoing, the owner of a well7known mark as defined in %e tion 12&.1"e# of this A t, that is not registered in the Phili!!ines, may, against an identi al or onfusingly similar mark, o!!ose its registration, or !etition the an ellation of its registration or sue for unfair om!etition, without !re8udi e to availing himself of other remedies !rovided for under the law. 1&1.-. In like manner and sub8e t to the same onditions and re,uirements, the right !rovided in this se tion may be based u!on a subse,uent regularly filed a!!li ation in the same foreign ountry: Provided, /hat any foreign a!!li ation filed !rior to su h subse,uent a!!li ation has been withdrawn, abandoned, or otherwise dis!osed of, without having been laid o!en to !ubli ins!e tion and without leaving any rights outstanding, and has not served, nor thereafter shall serve, as a basis for laiming a right of !riority. "%e . &4, (.A. )o. 1**a#

Sec. 132. A##lication 4u"ber and )iling Date 1&2.1. /he 9ffi e shall e6amine whether the a!!li ation satisfies the re,uirements for the grant of a filing date as !rovided in %e tion 124 and (egulations relating thereto. If the a!!li ation does not satisfy the filing re,uirements, the 9ffi e shall notify the a!!li ant who shall within a !eriod fi6ed by the (egulations om!lete or orre t the a!!li ation as re,uired, otherwise, the a!!li ation shall be onsidered withdrawn. 1&2.2 9n e an a!!li ation meets the filing re,uirements of %e tion 124, it shall be numbered in the se,uential order, and the a!!li ant shall be informed of the a!!li ation number and the filing date of the a!!li ation will be deemed to have been abandoned. "n#

Sec. 133. E5a"ination and 3ublication 1&&.1. 9n e the a!!li ation meets the filing re,uirements of %e tion 124, the 9ffi e shall e6amine whether the a!!li ation meets the re,uirements of %e tion 12- and the mark as defined in %e tion 121 is registrable under %e tion 12&. 1&&.2. <here the 9ffi e finds that the onditions referred to in %ubse tion 1&&.1 are fulfilled, it shall, u!on !ayment of the !res ribed fee. ;orthwith ause the a!!li ation, as filed, to be !ublished in the !res ribed manner. 1&&.&. If after the e6amination, the a!!li ant is not entitled to registration for any reason, the 9ffi e shall advise the a!!li ant thereof and the reasons therefor. /he a!!li ant shall have a !eriod of four "-# months in whi h to re!ly or amend his a!!li ation, whi h shall then be re7 e6amined. /he (egulations shall determine the !ro edure for the re7e6amination or revival of an a!!li ation as well as the a!!eal to the 2ire tor of /rademarks from any final a tion by the 56aminer. 1&&.-. An abandoned a!!li ation may be revived as a !ending a!!li ation within three "&# months from the date of abandonment, u!on good ause shown and the !ayment of the re,uired fee. 1&&.1. /he final de ision of refusal of the 2ire tor of /rademarks shall be a!!ealable to the 2ire tor 3eneral in a ordan e with the !ro edure fi6ed by the (egulations. "%e . 4, (.A. )o. 1**a# Sec. 13!. /##osition Any !erson who believes that he would be damaged by the registration of a mark may, u!on !ayment of the re,uired fee and within thirty "&.# days after the !ubli ation referred to in %ubse tion 1&&.2, file with the 9ffi e an o!!osition to the a!!li ation. %u h o!!osition shall be in writing and verified by the o!!ositor or by any !erson on his behalf who knows the fa ts, and shall s!e ify the grounds on whi h it is based and in lude a statement of the fa ts relied u!on. +o!ies of ertifi ates of registration of marks registered in other ountries or other su!!orting do uments mentioned in the o!!osition shall be filed therewith, together with the translation in 5nglish, if not in the 5nglish language. ;or good ause shown and u!on !ayment of the re,uired sur harge, the time for filing an o!!osition may be e6tended by the 2ire tor of ?egal Affairs, who shall notify the a!!li ant of su h e6tension. /he (egulations shall fi6 the ma6imum !eriod of time within whi h to file the o!!osition. "%e . ', (.A. )o. 1*1a#

Sec. 13$. 4otice and Hearing @!on the filing of an o!!osition, the 9ffi e shall serve noti e of the filing on the a!!li ant, and of the date of the hearing thereof u!on the a!!li ant and the o!!ositor and all other !ersons having any right, title or interest in the mark overed by the a!!li ation, as a!!ear of re ord in the 9ffi e. "%e . A (.A. )o. 1*1#

Sec. 13'. 2ssuance and 3ublication of Certificate <hen the !eriod for filing the o!!osition has e6!ired, or when the 2ire tor of ?egal Affairs shall have denied the o!!osition, the 9ffi e u!on !ayment of the re,uired fee, shall issue the ertifi ate of registration. @!on issuan e of a ertifi ate of registration, noti e thereof making referen e to the !ubli ation of the a!!li ation shall be !ublished in the IP9 3a=ette. "%e . 1., (.A. )o. 1*1#

Sec. 13(. Registration of Mark and 2ssuance of a Certificate to t0e /wner or 0is Assignee 1&4.1. /he 9ffi e shall maintain a (egister in whi h shall be registered marks, numbered in the order of their registration, and all transa tions in res!e t of ea h mark, re,uired to be re orded by virtue of this law. 1&4.2. /he registration of a mark shall in lude a re!rodu tion of the mark and shall mention: its number$ the name and address of the registered owner and, if the registered owner:s address is outside the ountry, his address for servi e within the ountry$ the dates of a!!li ation and registration$ if !riority is laimed, an indi ation of this fa t, and the number, date and ountry of the a!!li ation, basis of the !riority laims$ the list of goods or servi es in res!e t of whi h registration has been granted, with the indi ation of the orres!onding lass or lasses$ and su h other data as the (egulations may !res ribe from time to time.

1&4.&. A ertifi ate of registration of a mark may be issued to the assignee of the a!!li ant: Provided, /hat the assignment is re orded in the 9ffi e. In ase of a hange of ownershi!, the 9ffi e shall at the written re,uest signed by the owner, or his re!resentative, or by the new owner, or his re!resentative and u!on a !ro!er showing and the !ayment of the !res ribed fee, issue to su h assignee a new ertifi ate of registration of the said mark in the name of su h assignee, and for the une6!ired !art of the original !eriod. 1&4.-. /he 9ffi e shall re ord any hange of address, or address for servi e, whi h shall be notified to it by the registered owner. 1&4.1. In the absen e of any !rovision to the ontrary in this A t, ommuni ations to be made to the registered owner by virtue of this A t shall be sent to him at his last re orded address and, at the same, at his last re orded address for servi e. "%e . 1A, (.A. )o. 1**a# Sec. 13*. Certificates of Registration A ertifi ate of registration of a mark shall be !rima fa ie eviden e of the validity of the registration, the registrant:s ownershi! of the mark, and of the registrant:s e6 lusive right to use the same in onne tion with the goods or servi es and those that are related thereto s!e ified in the ertifi ate. "%e . 2., (.A. )o. 1*1#

Sec. 13-. 3ublication of Registered Marks% 2ns#ection of Register 1&A.1. /he 9ffi e shall !ublish, in the form and within the !eriod fi6ed by the (egulations, the mark registered, in the order of their registration, re!rodu ing all the !arti ulars referred to in %ubse tion 1&4.2. 1&A.2. Marks registered at the 9ffi e may be ins!e ted free of harge and any !erson may obtain o!ies thereof at his own e6!ense. /his !rovision shall also be a!!li able to transa tions re orded in res!e t of any registered mark. "n#

Sec. 1!.. Cancellation u#on A##lication b Registration

Registrant% A"end"ent or Disclai"er of

@!on a!!li ation of the registrant, the 9ffi e may !ermit any registration to be surrendered for an ellation, and u!on an ellation the a!!ro!riate entry shall be made in the re ords of the 9ffi e. @!on a!!li ation of the registrant and !ayment of the !res ribed fee, the 9ffi e for good ause may !ermit any registration to be amended or to be dis laimed in !art: Provided, /hat the amendment or dis laimer does not alter materially the hara ter of the mark. A!!ro!riate entry shall be made in the re ords of the 9ffi e u!on the ertifi ate of registration or, if said ertifi ates is lost or destroyed, u!on a ertified o!y thereof. "%e . 1-, (.A. )o. 1**#

Sec. 1!1. Sealed and Certified Co#ies as E&idence +o!ies of any re ords, books, !a!ers, or drawings belonging to the 9ffi e relating to marks, and o!ies of registrations, when authenti ated by the seal of the 9ffi e and ertified by the 2ire tor of the Administrative, ;inan ial and Buman (esour e 2evelo!ment %ervi e 0ureau or in his name by an em!loyee of the 9ffi e duly authori=ed by said 2ire tor, shall be eviden e in all ases wherein the originals would be eviden e$ and any !erson who a!!lies and !ays the !res ribed fee shall se ure su h o!ies. "n#

Sec. 1!2. Correction of Mistakes Made b t0e /ffice <henever a material mistake in a registration in urred through the fault of the 9ffi e is learly dis losed by the re ords of the 9ffi e, a ertifi ate stating the fa t and nature of su h mistake shall be issued without harge, re orded and a !rinted o!y thereof shall be atta hed to ea h !rinted o!y of the registration. %u h orre ted registration shall thereafter have the same effe t as the original ertifi ate$ or in the dis retion of the 2ire tor of the Administrative, ;inan ial and Buman (esour e 2evelo!ment %ervi e 0ureau a new ertifi ate of registration may be issued without harge. All ertifi ates of orre tion heretofore issued in a ordan e with the (egulations and the registration to whi h they are atta hed shall have the same for e and effe t as if su h ertifi ates and their issuan e had been authori=ed by this A t. "n#

Sec. 1!3. Correction of Mistakes Made b A##licant <henever a mistake is made in a registration and su h mistake o urred in good faith through the fault of the a!!li ant, the 9ffi e may issue a ertifi ate u!on the !ayment of the !res ribed fee: Provided, /hat the orre tion does not involve any hange in the registration that re,uires re!ubli ation of the mark. "n#

Sec. 1!!. Classification of +oods and Ser&ices 1--.1. 5a h registration, and any !ubli ation of the 9ffi e whi h on erns an a!!li ation or registration effe ted by the 9ffi e shall indi ate the goods or servi es by their names, grou!ed a ording to the lasses of the )i e +lassifi ation, and ea h grou! shall be !re eded by the number of the lass of that +lassifi ation to whi h that grou! of goods or servi es belongs, !resented in the order of the lasses of the said +lassifi ation. 1--.2. 3oods or servi es may not be onsidered as being similar or dissimilar to ea h other on the ground that, in any registration or !ubli ation by the 9ffi e, they a!!ear in different lasses of the )i e +lassifi ation. "%e . *, (.A. )o. 1**a#

Sec. 1!$. Duration A ertifi ate of registration shall remain in for e for ten "1.# years: Provided, /hat the registrant shall file a de laration of a tual use and eviden e to that effe t, or shall show valid reasons based on the e6isten e of obsta les to su h use, as !res ribed by the (egulations, within one "1# year from the fifth anniversary of the date of the registration of the mark. 9therwise, the mark shall be removed from the (egister by the 9ffi e. "%e . 12, (.A. )o. 1**a#

Sec. 1!'. Renewal 1-*.1. A ertifi ate of registration may be renewed for !eriods of ten "1.# years at its e6!iration u!on !ayment of the !res ribed fee and u!on filing of a re,uest. /he re,uest shall ontain the following indi ations: "a# An indi ation that renewal is sought$ "b# /he name and address of the registrant or his su essor7in7interest, hereafter referred to as the "right holder"$ " # /he registration number of the registration on erned$ "d# /he filing date of the a!!li ation whi h resulted in the registration on erned to be renewed$ "e# <here the right holder has a re!resentative, the name and address of that re!resentative$ "f# /he names of the re orded goods or servi es for whi h the renewal is re,uested or the names of the re orded goods or servi es for whi h the renewal is not re,uested, grou!ed a ording to the lasses of the )i e +lassifi ation to whi h that grou! of goods or servi es belongs and !resented in the order of the lasses of the said +lassifi ation$ and "g# A signature by the right holder or his re!resentative. 1-*.2. %u h re,uest shall be in ;ili!ino or 5nglish and may be made at any time within si6 "*# months before the e6!iration of the !eriod for whi h the registration was issued or renewed, or it may be made within si6 "*# months after su h e6!iration on !ayment of the additional fee herein !res ribed. 1-*.&. If the 9ffi e refuses to renew the registration, it shall notify the registrant of his refusal and the reasons therefor. 1-*.-. An a!!li ant for renewal not domi iled in the Phili!!ines shall be sub8e t to and om!ly with the re,uirements of this A t. "%e . 11, (.A. )o. 1**a#

Sec. 1!(. Rig0ts Conferred 1-4.1. /he owner of a registered mark shall have the e6 lusive right to !revent all third !arties not having the owner:s onsent from using in the ourse of trade identi al or similar signs or ontainers for goods or servi es whi h are identi al or similar to those in res!e t of whi h the trademark is registered where su h use would result in a likelihood of onfusion. In ase of the use, of an identi al sign for identi al goods or servi es, a likelihood of onfusion shall be !resumed. 1-4.2. /he e6 lusive right of the owner of a well7known mark defined in %ubse tion 12&.1"e# whi h is registered in the Phili!!ines, shall e6tend to goods and servi es whi h are not similar to those in res!e t of whi h the mark is registered: Provided, /hat use of that mark in relation to those goods or servi es would indi ate a onne tion between those goods or servi es and the

owner of the registered mark: Provided further, /hat the interests of the owner of the registered mark are likely to be damaged by su h use. "n#

Sec. 1!*. 6se of 2ndications b 70ird 3arties for 3ur#oses /t0er t0an t0ose for w0ic0 t0e Mark is 6sed (egistration of the mark shall not onfer on the registered owner the right to !re lude third !arties from using bona fide their names, addresses, !seudonyms, a geogra!hi al name, or e6a t indi ations on erning the kind, ,uality, ,uantity, destination, value, !la e of origin, or time of !rodu tion or of su!!ly, of their goods or servi es: Provided, /hat su h use is onfined to the !ur!oses of mere identifi ation or information and annot mislead the !ubli as to the sour e of the goods or servi es. "n#

Sec. 1!-. Assign"ent and 7ransfer of A##lication and Registration 1-A.1. An a!!li ation for registration of a mark, or its registration, may be assigned or transferred with or without the transfer of the business using the mark. "n# 1-A.2. %u h assignment or transfer shall, however, be null and void if it is liable to mislead the !ubli , !arti ularly as regards the nature, sour e, manufa turing !ro ess, hara teristi s, or suitability for their !ur!ose, of the goods or servi es to whi h the mark is a!!lied. 1-A.&. /he assignment of the a!!li ation for registration of a mark, or of its registration, shall be in writing and re,uire the signatures of the ontra ting !arties. /ransfers by mergers or other forms of su ession may be made by any do ument su!!orting su h transfer. 1-A.-. Assignments and transfers of registration of marks shall be re orded at the 9ffi e on !ayment of the !res ribed fee$ assignment and transfers of a!!li ations for registration shall, on !ayment of the same fee, be !rovisionally re orded, and the mark, when registered, shall be in the name of the assignee or transferee. 1-A.1. Assignments and transfers shall have no effe t against third !arties until they are re orded at the 9ffi e. "%e . &1, (.A. )o. 1**a#

Sec. 1$.. 8icense Contracts 11..1. Any li ense ontra t on erning the registration of a mark, or an a!!li ation therefor, shall !rovide for effe tive ontrol by the li ensor of the ,uality of the goods or servi es of the li ensee in onne tion with whi h the mark is used. If the li ense ontra t does not !rovide for su h ,uality ontrol, or if su h ,uality ontrol is not effe tively arried out, the li ense ontra t shall not be valid. 11..2. A li ense ontra t shall be submitted to the 9ffi e whi h shall kee! its ontents onfidential but shall re ord it and !ublish a referen e thereto. A li ense ontra t shall have no effe t against third !arties until su h re ording is effe ted. /he (egulations shall fi6 the !ro edure for the re ording of the li ense ontra t. "n#

Sec. 1$1. Cancellation

111.1. A !etition to an el a registration of a mark under this A t may be filed with the 0ureau of ?egal Affairs by any !erson who believes that he is or will be damaged by the registration of a mark under this A t as follows: "a# <ithin five "1# years from the date of the registration of the mark under this A t. "b# At any time, if the registered mark be omes the generi name for the goods or servi es, or a !ortion thereof, for whi h it is registered, or has been abandoned, or its registration was obtained fraudulently or ontrary to the !rovisions of this A t, or if the registered mark is being used by, or with the !ermission of, the registrant so as to misre!resent the sour e of the goods or servi es on or in onne tion with whi h the mark is used. If the registered mark be omes the generi name for less than all of the goods or servi es for whi h it is registered, a !etition to an el the registration for only those goods or servi es may be filed. A registered mark shall not be deemed to be the generi name of goods or servi es solely be ause su h mark is also used as a name of or to identify a uni,ue !rodu t or servi e. /he !rimary signifi an e of the registered mark to the relevant !ubli rather than !ur haser motivation shall be the test for determining whether the registered mark has be ome the generi name of goods or servi es on or in onne tion with whi h it has been used. "n# " # At any time, if the registered owner of the mark without legitimate reason fails to use the mark within the Phili!!ines, or to ause it to be used in the Phili!!ines by virtue of a li ense during an uninterru!ted !eriod of three "&# years or longer. 111.2. )otwithstanding the foregoing !rovisions, the ourt or the administrative agen y vested with 8urisdi tion to hear and ad8udi ate any a tion to enfor e the rights to a registered mark shall likewise e6er ise 8urisdi tion to determine whether the registration of said mark may be an elled in a ordan e with this A t. /he filing of a suit to enfor e the registered mark with the !ro!er ourt or agen y shall e6 lude any other ourt or agen y from assuming 8urisdi tion over a subse,uently filed !etition to an el the same mark. 9n the other hand, the earlier filing of !etition to an el the mark with the 0ureau of ?egal Affairs shall not onstitute a !re8udi ial ,uestion that must be resolved before an a tion to enfor e the rights to same registered mark may be de ided. "%e . 14, (.A. )o. 1**a#

Sec. 1$2. 4one1use of a Mark 90en E5cused 112.1. )on7use of a mark may be e6 used if aused by ir umstan es arising inde!endently of the will of the trademark owner. ?a k of funds shall not e6 use non7use of a mark. 112.2. /he use of the mark in a form different from the form in whi h it is registered, whi h does not alter its distin tive hara ter, shall not be ground for an ellation or removal of the mark and shall not diminish the !rote tion granted to the mark. 112.&. /he use of a mark in onne tion with one or more of the goods or servi es belonging to the lass in res!e t of whi h the mark is registered shall !revent its an ellation or removal in res!e t of all other goods or servi es of the same lass. 112.-. /he use of a mark by a om!any related with the registrant or a!!li ant shall inure to the latter:s benefit, and su h use shall not affe t the validity of su h mark or of its registration: Provided, /hat su h mark is not used in su h manner as to de eive the !ubli . If use of a mark by a !erson is ontrolled by the registrant or a!!li ant with res!e t to the nature and ,uality of the goods or servi es, su h use shall inure to the benefit of the registrant or a!!li ant. "n#

Sec. 1$3. Require"ents of 3etition% 4otice and Hearing

Insofar as a!!li able, the !etition for an ellation shall be in the same form as that !rovided in %e tion 1&- hereof, and noti e and hearing shall be as !rovided in %e tion 1&1 hereof.

Sec. 1$!. Cancellation of Registration If the 0ureau of ?egal Affairs finds that a ase for an ellation has been made out, it shall order the an ellation of the registration. <hen the order or 8udgment be omes final, any right onferred by su h registration u!on the registrant or any !erson in interest of re ord shall terminate. )oti e of an ellation shall be !ublished in the IP9 3a=ette. "%e . 1A. (.A. )o. 1**a#

Sec. 1$$. Re"edies% 2nfringe"ent Any !erson who shall, without the onsent of the owner of the registered mark: 111.1. @se in ommer e any re!rodu tion, ounterfeit, o!y, or olorable imitation of a registered mark or the same ontainer or a dominant feature thereof in onne tion with the sale, offering for sale, distribution, advertising of any goods or servi es in luding other !re!aratory ste!s ne essary to arry out the sale of any goods or servi es on or in onne tion with whi h su h use is likely to ause onfusion, or to ause mistake, or to de eive$ or 111.2. (e!rodu e, ounterfeit, o!y or olorably imitate a registered mark or a dominant feature thereof and a!!ly su h re!rodu tion, ounterfeit, o!y or olorable imitation to labels, signs, !rints, !a kages, wra!!ers, re e!ta les or advertisements intended to be used in ommer e u!on or in onne tion with the sale, offering for sale, distribution, or advertising of goods or servi es on or in onne tion with whi h su h use is likely to ause onfusion, or to ause mistake, or to de eive, shall be liable in a ivil a tion for infringement by the registrant for the remedies hereinafter set forth: Provided, /hat the infringement takes !la e at the moment any of the a ts stated in %ubse tion 111.1 or this subse tion are ommitted regardless of whether there is a tual sale of goods or servi es using the infringing material. "%e . 22, (.A. )o 1**a#

Sec. 1$'. Actions: and Da"ages and 2n;unction for 2nfringe"ent 11*.1. /he owner of a registered mark may re over damages from any !erson who infringes his rights, and the measure of the damages suffered shall be either the reasonable !rofit whi h the om!laining !arty would have made, had the defendant not infringed his rights, or the !rofit whi h the defendant a tually made out of the infringement, or in the event su h measure of damages annot be readily as ertained with reasonable ertainty, then the ourt may award as damages a reasonable !er entage based u!on the amount of gross sales of the defendant or the value of the servi es in onne tion with whi h the mark or trade name was used in the infringement of the rights of the om!laining !arty. "%e . 2&, first !ar., (.A. )o. 1**a# 11*.2. 9n a!!li ation of the om!lainant, the ourt may im!ound during the !enden y of the a tion, sales invoi es and other do uments eviden ing sales. "n# 11*.&. In ases where a tual intent to mislead the !ubli or to defraud the om!lainant is shown, in the dis retion of the ourt, the damages may be doubled. "%e . 2&, first !ar., (.A. )o. 1**# 11*.-. /he om!lainant, u!on !ro!er showing, may also be granted in8un tion. "%e . 2&, se ond !ar., (.A. )o. 1**a#

Sec. 1$(. 3ower of Court to /rder 2nfringing Material Destro ed 114.1. In any a tion arising under this A t, in whi h a violation of any right of the owner of the registered mark is established, the ourt may order that goods found to be infringing be, without om!ensation of any sort, dis!osed of outside the hannels of ommer e in su h a manner as to avoid any harm aused to the right holder, or destroyed$ and all labels, signs, !rints, !a kages, wra!!ers, re e!ta les and advertisements in the !ossession of the defendant, bearing the registered mark or trade name or any re!rodu tion, ounterfeit, o!y or olorable imitation thereof, all !lates, molds, matri es and other means of making the same, shall be delivered u! and destroyed. 114.2. In regard to ounterfeit goods, the sim!le removal of the trademark affi6ed shall not be suffi ient other than in e6 e!tional ases whi h shall be determined by the (egulations, to !ermit the release of the goods into the hannels of ommer e. "%e . 2-, (.A. )o. 1**a#.

Sec. 1$*. Da"ages% Require"ent of 4otice In any suit for infringement, the owner of the registered mark shall not be entitled to re over !rofits or damages unless the a ts have been ommitted with knowledge that su h imitation is likely to ause onfusion, or to ause mistake, or to de eive. %u h knowledge is !resumed if the registrant gives noti e that his mark is registered by dis!laying with the mark the words "(egistered Mark" or the letter ( within a ir le or if the defendant had otherwise a tual noti e of the registration. "%e . 21, (.A. )o. 1**a#

SEC. 1$-. 8i"itations to Actions for 2nfringe"ent )otwithstanding any other !rovision of this A t, the remedies given to the owner of a right infringed under this A t shall be limited as follows: 11A.1 )otwithstanding the !rovisions of %e tion 111 hereof, a registered mark shall have no effe t against any !erson who, in good faith, before the filing date or the !riority date, was using the mark for the !ur!oses of his business or enter!rise: Provided, /hat his right may only be transferred or assigned together with his enter!rise or business or with that !art of his enter!rise or business in whi h the mark is used. 11A.2 <here an infringer who is engaged solely in the business of !rinting the mark or other infringing materials for others is an inno ent infringer, the owner of the right infringed shall be entitled as against su h infringer only to an in8un tion against future !rinting. 11A.&. <here the infringement om!lained of is ontained in or is !art of !aid advertisement in a news!a!er, maga=ine, or other similar !eriodi al or in an ele troni ommuni ation, the remedies of the owner of the right infringed as against the !ublisher or distributor of su h news!a!er, maga=ine, or other similar !eriodi al or ele troni ommuni ation shall be limited to an in8un tion against the !resentation of su h advertising matter in future issues of su h news!a!ers, maga=ines, or other similar !eriodi als or in future transmissions of su h ele troni ommuni ations. /he limitations of this sub!aragra!h shall a!!ly only to inno ent infringers: Provided, /hat su h in8un tive relief shall not be available to the owner of the right infringed with res!e t to an issue of a news!a!er, maga=ine, or other similar !eriodi al or an ele troni ommuni ation ontaining infringing matter where restraining the dissemination of su h infringing matter in any !arti ular issue of su h !eriodi al or in an ele troni ommuni ation would delay

the delivery of su h issue or transmission of su h ele troni ommuni ation is ustomarily ondu ted in a ordan e with the sound business !ra ti e, and not due to any method or devi e ado!ted to evade this se tion or to !revent or delay the issuan e of an in8un tion or restraining order with res!e t to su h infringing matter. "n#

Sec. 1'.. Rig0t of )oreign Cor#oration to Sue in 7rade"ark or Ser&ice Mark Enforce"ent Action Any foreign national or 8uridi al !erson who meets the re,uirements of %e tion & of this A t and does not engage in business in the Phili!!ines may bring a ivil or administrative a tion hereunder for o!!osition, an ellation, infringement, unfair om!etition, or false designation of origin and false des ri!tion, whether or not it is li ensed to do business in the Phili!!ines under e6isting laws. "%e . 217A, (.A. )o. 1**a#

Sec. 1'1. Aut0orit to Deter"ine Rig0t to Registration In any a tion involving a registered mark, the ourt may determine the right to registration, order the an ellation of a registration, in whole or in !art, and otherwise re tify the register with res!e t to the registration of any !arty to the a tion in the e6er ise of this. Cudgment and orders shall be ertified by the ourt to the 2ire tor, who shall make a!!ro!riate entry u!on the re ords of the 0ureau, and shall be ontrolled thereby. "%e . 21, (.A. )o. 1**a#

Sec. 1'2. Action for )alse or )raudulent Declaration Any !erson who shall !ro ure registration in the 9ffi e of a mark by a false or fraudulent de laration or re!resentation, whether oral or in writing, or by any false means, shall be liable in a ivil a tion by any !erson in8ured thereby for any damages sustained in onse,uen e thereof. "%e . 2*, (.A. )o. 1**#

Sec. 1'3. <urisdiction of Court All a tions under %e tions 11., 111, 1*-, and 1** to 1*A shall be brought before the !ro!er ourts with a!!ro!riate 8urisdi tion under e6isting laws. "%e . 24, (.A. )o. 1**#

Sec. 1'!. 4otice of )iling Suit +i&en to t0e Director It shall be the duty of the lerks of su h ourts within one "1# month after the filing of any a tion, suit, or !ro eeding involving a mark registered under the !rovisions of this A t, to notify the 2ire tor in writing setting forth: the names and addresses of the litigants and designating the number of the registration or registrations and within one "1# month after the 8udgment is entered or an a!!eal is taken, the lerk of ourt shall give noti e thereof to the 9ffi e, and the latter shall endorse the same u!on the filewra!!er of the said registration or registrations and in or!orate the same as a !art of the ontents of said filewra!!er. "n#

Sec. 1'$. 7rade 4a"es or =usiness 4a"es

1*1.1. A name or designation may not be used as a trade name if by its nature or the use to whi h su h name or designation may be !ut, it is ontrary to !ubli order or morals and if, in !arti ular, it is liable to de eive trade ir les or the !ubli as to the nature of the enter!rise identified by that name. 1*1.2. "a# )otwithstanding any laws or regulations !roviding for any obligation to register trade names, su h names shall be !rote ted, even !rior to or without registration, against any unlawful a t ommitted by third !arties. "b# In !arti ular, any subse,uent use of the trade name by a third !arty, whether as a trade name or a mark or olle tive mark, or any su h use of a similar trade name or mark, likely to mislead the !ubli , shall be deemed unlawful. 1*1.&. /he remedies !rovided for in %e tions 11& to 11* and %e tions 1** and 1*4 shall a!!ly mutatis mutandis. 1*1.-. Any hange in the ownershi! of a trade name shall be made with the transfer of the enter!rise or !art thereof identified by that name. /he !rovisions of %ubse tions 1-A.2 to 1-A.shall a!!ly mutatis mutandis.

Sec. 1''. +oods =earing 2nfringing Marks or 7rade 4a"es )o arti le of im!orted mer handise whi h shall o!y or simulate the name of any domesti !rodu t, or manufa turer, or dealer, or whi h shall o!y or simulate a mark registered in a ordan e with the !rovisions of this A t, or shall bear a mark or trade name al ulated to indu e the !ubli to believe that the arti le is manufa tured in the Phili!!ines, or that it is manufa tured in any foreign ountry or lo ality other than the ountry or lo ality where it is in fa t manufa tured, shall be admitted to entry at any ustomhouse of the Phili!!ines. In order to aid the offi ers of the ustoms servi e in enfor ing this !rohibition, any !erson who is entitled to the benefits of this A t, may re,uire that his name and residen e, and the name of the lo ality in whi h his goods are manufa tured, a o!y of the ertifi ate of registration of his mark or trade name, to be re orded in books whi h shall be ke!t for this !ur!ose in the 0ureau of +ustoms, under su h regulations as the +olle tor of +ustoms with the a!!roval of the %e retary of ;inan e shall !res ribe, and may furnish to the said 0ureau fa similes of his name, the name of the lo ality in whi h his goods are manufa tured, or his registered mark or trade name, and thereu!on the +olle tor of +ustoms shall ause one "1# or more o!ies of the same to be transmitted to ea h olle tor or to other !ro!er offi er of the 0ureau of +ustoms. "%e . &1, (.A. )o. 1**#

Sec. 1'(. Collecti&e Marks 1*4.1. %ub8e t to %ubse tions 1*4.2 and 1*4.&, %e tions 122 to 1*- and 1** shall a!!ly to olle tive marks, e6 e!t that referen es therein to "mark" shall be read as " olle tive mark." 1*4.2 "a# An a!!li ation for registration of a olle tive mark shall designate the mark as a olle tive mark and shall be a om!anied by a o!y of the agreement, if any, governing the use of the olle tive mark. "b# /he registered owner of a olle tive mark shall notify the 2ire tor of any hanges made in res!e t of the agreement referred to in !aragra!h "a#. 1*4.&. In addition to the grounds !rovided in %e tion 1-A, the +ourt shall an el the registration of a olle tive mark if the !erson re,uesting the an ellation !roves that only the

registered owner uses the mark, or that he uses or !ermits its use in ontravention of the agreements referred to in %ubse tion 1**.2 or that he uses or !ermits its use in a manner liable to de eive trade ir les or the !ubli as to the origin or any other ommon hara teristi s of the goods or servi es on erned. 1*4.-. /he registration of a olle tive mark, or an a!!li ation therefor shall not be the sub8e t of a li ense ontra t. "%e . -., (.A. )o. 1**a#

SEC. 1'*. 6nfair Co"#etition: Rig0ts: Regulation and Re"edies 1*'.1. A !erson who has identified in the mind of the !ubli the goods he manufa tures or deals in, his business or servi es from those of others, whether or not a registered mark is em!loyed, has a !ro!erty right in the goodwill of the said goods, business or servi es so identified, whi h will be !rote ted in the same manner as other !ro!erty rights. 1*'.2. Any !erson who shall em!loy de e!tion or any other means ontrary to good faith by whi h he shall !ass off the goods manufa tured by him or in whi h he deals, or his business, or servi es for those of the one having established su h goodwill, or who shall ommit any a ts al ulated to !rodu e said result, shall be guilty of unfair om!etition, and shall be sub8e t to an a tion therefor. 1*'.&. In !arti ular, and without in any way limiting the s o!e of !rote tion against unfair om!etition, the following shall be deemed guilty of unfair om!etition: "a# Any !erson, who is selling his goods and gives them the general a!!earan e of goods of another manufa turer or dealer, either as to the goods themselves or in the wra!!ing of the !a kages in whi h they are ontained, or the devi es or words thereon, or in any other feature of their a!!earan e, whi h would be likely to influen e !ur hasers to believe that the goods offered are those of a manufa turer or dealer, other than the a tual manufa turer or dealer, or who otherwise lothes the goods with su h a!!earan e as shall de eive the !ubli and defraud another of his legitimate trade, or any subse,uent vendor of su h goods or any agent of any vendor engaged in selling su h goods with a like !ur!ose$ Any !erson who by any artifi e, or devi e, or who em!loys any other means al ulated to indu e the false belief that su h !erson is offering the servi es of another who has identified su h servi es in the mind of the !ubli $ or Any !erson who shall make any false statement in the ourse of trade or who shall ommit any other a t ontrary to good faith of a nature al ulated to dis redit the goods, business or servi es of another.

"b# " #

1*'.-. /he remedies !rovided by %e tions 11*, 114 and 1*1 shall a!!ly mutatis mutandis. "%e . 2A, (.A. )o. 1**a#

SEC. 1'-. )alse Designations of /rigin% )alse Descri#tion or Re#resentation 1*A.1. Any !erson who, on or in onne tion with any goods or servi es, or any ontainer for goods, uses in ommer e any word, term, name, symbol, or devi e, or any ombination thereof, or any false designation of origin, false or misleading des ri!tion of fa t, or false or misleading re!resentation of fa t, whi h:

"a# Is likely to ause onfusion, or to ause mistake, or to de eive as to the affiliation, onne tion, or asso iation of su h !erson with another !erson, or as to the origin, s!onsorshi!, or a!!roval of his or her goods, servi es, or ommer ial a tivities by another !erson$ or "b# In ommer ial advertising or !romotion, misre!resents the nature, hara teristi s, ,ualities, or geogra!hi origin of his or her or another !erson:s goods, servi es, or ommer ial a tivities, shall be liable to a ivil a tion for damages and in8un tion !rovided in %e tions 11* and 114 of this A t by any !erson who believes that he or she is or likely to be damaged by su h a t. 1*A.2. Any goods marked or labeled in ontravention of the !rovisions of this %e tion shall not be im!orted into the Phili!!ines or admitted entry at any ustomhouse of the Phili!!ines. /he owner, im!orter, or onsignee of goods refused entry at any ustomhouse under this se tion may have any re ourse under the ustoms revenue laws or may have the remedy given by this A t in ases involving goods refused entry or sei=ed. "%e . &., (.A. )o. 1**a#

SEC. 1(.. 3enalties Inde!endent of the ivil and administrative san tions im!osed by law, a riminal !enalty of im!risonment from two "2# years to five "1# years and a fine ranging from ;ifty thousand !esos "P1.,...# to /wo hundred thousand !esos "P2..,...#, shall be im!osed on any !erson who is found guilty of ommitting any of the a ts mentioned in %e tion 111, %e tion 1*' and %ubse tion 1*A.1. "Arts. 1'' and 1'A, (evised Penal +ode#

PART IV

THE LAW ON COPYRIGHT

CHAPTER I

PRELIMINARY PROVISIONS
SEC. 1(1. Definitions ;or the !ur!ose of this A t, the following terms have the following meaning: 141.1. "Author" is the natural !erson who has reated the work$ 141.2. A " olle tive work" is a work whi h has been reated by two "2# or more natural !ersons at the initiative and under the dire tion of another with the understanding that it will be dis losed by the latter under his own name and that ontributing natural !ersons will not be identified$ 141.&. "+ommuni ation to the !ubli " or " ommuni ate to the !ubli " means the making of a work available to the !ubli by wire or wireless means in su h a way that members of the !ubli may a ess these works from a !la e and time individually hosen by them$ 141.-. A " om!uter" is an ele troni or similar devi e having information7!ro essing a!abilities, and a " om!uter !rogram" is a set of instru tions e6!ressed in words, odes, s hemes or in any other form, whi h is a!able when in or!orated in a medium that the om!uter an read, or ausing the om!uter to !erform or a hieve a !arti ular task or result$

141.1. "Publi lending" is the transfer of !ossession of the original or a o!y of a work or sound re ording for a limited !eriod, for non7!rofit !ur!oses, by an institution the servi es of whi h are available to the !ubli , su h as !ubli library or ar hive$ 141.*. "Publi !erforman e," in the ase of a work other than an audiovisual work, is the re itation, !laying, dan ing, a ting or otherwise !erforming the work, either dire tly or by means of any devi e or !ro ess$ in the ase of an audiovisual work, the showing of its images in se,uen e and the making of the sounds a om!anying it audible$ and, in the ase of a sound re ording, making the re orded sounds audible at a !la e or at !la es where !ersons outside the normal ir le of a family and that family:s losest so ial a ,uaintan es are or an be !resent, irres!e tive of whether they are or an be !resent at the same !la e and at the same time, or at different !la es and>or at different times, and where the !erforman e an be !er eived without the need for ommuni ation within the meaning of %ubse tion 141.&$ 141.4. "Published works" means works, whi h, with the onsent of the authors, are made available to the !ubli by wire or wireless means in su h a way that members of the !ubli may a ess these works from a !la e and time individually hosen by them: Provided, /hat availability of su h o!ies has been su h, as to satisfy the reasonable re,uirements of the !ubli , having regard to the nature of the work$ 141.'. "(ental" is the transfer of the !ossession of the original or a o!y of a work or a sound re ording for a limited !eriod of time, for !rofit7making !ur!oses$ 141.A. "(e!rodu tion" is the making of one "1# or more o!ies of a work or a sound re ording in any manner or form "%e . -1 D5E, P.2. )o. -Aa#$ 141.1.. A "work of a!!lied art" is an artisti reation with utilitarian fun tions or in or!orated in a useful arti le, whether made by hand or !rodu ed on an industrial s ale$ 141.11. A "work of the 3overnment of the Phili!!ines" is a work reated by an offi er or em!loyee of the Phili!!ine 3overnment or any of its subdivisions and instrumentalities, in luding government7owned or ontrolled or!orations as !art of his regularly !res ribed offi ial duties.

CHAPTER II

ORIGINAL WORKS
SEC. 1(2. 8iterar and Artistic 9orks 142.1 ?iterary and artisti works, hereinafter referred to as "works", are original intelle tual reations in the literary and artisti domain !rote ted from the moment of their reation and shall in lude in !arti ular "a# 0ooks, !am!hlets, arti les and other writings$ "b# Periodi als and news!a!ers$ " # ?e tures, sermons, addresses, dissertations !re!ared for oral delivery, whether or not redu ed in writing or other material form$ "d# ?etters$ "e# 2ramati or dramati o7musi al om!ositions$ horeogra!hi works or entertainment in dumb shows$ "f# Musi al om!ositions, with or without words$ "g# <orks of drawing, !ainting, ar hite ture, s ul!ture, engraving, lithogra!hy or other works of art$ models or designs for works of art$

"h# 9riginal ornamental designs or models for arti les of manufa ture, whether or not registrable as an industrial design, and other works of a!!lied art$ "i# Illustrations, ma!s, !lans, sket hes, harts and three7dimensional works relative to geogra!hy, to!ogra!hy, ar hite ture or s ien e$ "8# 2rawings or !lasti works of a s ientifi or te hni al hara ter$ "k# Photogra!hi works in luding works !rodu ed by a !ro ess analogous to !hotogra!hy$ lantern slides$ "l# Audiovisual works and inematogra!hi works and works !rodu ed by a !ro ess analogous to inematogra!hy or any !ro ess for making audio7visual re ordings$ "m# Pi torial illustrations and advertisements$ "n# +om!uter !rograms$ and "o# 9ther literary, s holarly, s ientifi and artisti works.

142.2. <orks are !rote ted by the sole fa t of their reation, irres!e tive of their mode or form of e6!ression, as well as of their ontent, ,uality and !ur!ose. "%e . 2, P.2. )o. -Aa#
Chapter III

DERIVATIVE WORKS
SEC. 1(3. Deri&ati&e 9orks 14&.1. /he following derivative works shall also be !rote ted by o!yright: "a# "b# 2ramati=ations, translations, ada!tations, abridgments, arrangements, and other alterations of literary or artisti works$ and +olle tions of literary, s holarly or artisti works, and om!ilations of data and other materials whi h are original by reason of the sele tion or oordination or arrangement of their ontents. "%e . 2, DPE and DFE, P.2. )o. -A#

14&.2. /he works referred to in !aragra!hs "a# and "b# of %ubse tion 14&.1 shall be !rote ted as a new works: Provided however, /hat su h new work shall not affe t the for e of any subsisting o!yright u!on the original works em!loyed or any !art thereof, or be onstrued to im!ly any right to su h use of the original works, or to se ure or e6tend o!yright in su h original works. "%e . ', P.2. -A$ Art. 1., /(IP%# SEC. 1(!. 3ublis0ed Edition of 9ork In addition to the right to !ublish granted by the author, his heirs or assigns, the !ublisher shall have a o!y right onsisting merely of the right of re!rodu tion of the ty!ogra!hi al arrangement of the !ublished edition of the work. "n#.

CHAPTER IV

WORKS NOT PROTECTED

SEC. 1($. 6n#rotected Sub;ect Matter )otwithstanding the !rovisions of %e tion 142 and 14&, no !rote tion shall e6tend, under this law, to any idea, !ro edure, system method or o!eration, on e!t, !rin i!le, dis overy or mere

data as su h, even if they are e6!ressed, e6!lained, illustrated or embodied in a work$ news of the day and other mis ellaneous fa ts having the hara ter of mere items of !ress information$ or any offi ial te6t of a legislative, administrative or legal nature, as well as any offi ial translation thereof. "n# SEC. 1('. 9orks of t0e +o&ern"ent 14*.1. )o o!yright shall subsist in any work of the 3overnment of the Phili!!ines. Bowever, !rior a!!roval of the government agen y or offi e wherein the work is reated shall be ne essary for e6!loitation of su h work for !rofit. %u h agen y or offi e may, among other things, im!ose as a ondition the !ayment of royalties. )o !rior a!!roval or onditions shall be re,uired for the use of any !ur!ose of statutes, rules and regulations, and s!ee hes, le tures, sermons, addresses, and dissertations, !ronoun ed, read or rendered in ourts of 8usti e, before administrative agen ies, in deliberative assemblies and in meetings of !ubli hara ter. "%e . A, first !ar., P.2. )o. -A# 14*.2. /he Author of s!ee hes, le tures, sermons, addresses, and dissertations mentioned in the !re eding !aragra!hs shall have the e6 lusive right of making a olle tion of his works. "n# 14*.&. )otwithstanding the foregoing !rovisions, the 3overnment is not !re luded from re eiving and holding o!yrights transferred to it by assignment, be,uest or otherwise$ nor shall !ubli ation or re!ubli ation by the government in a !ubli do ument of any work in whi h o!y right is subsisting be taken to ause any abridgment or annulment of the o!yright or to authori=e any use or a!!ro!riation of su h work without the onsent of the o!yright owners. "%e . A, third !ar., P.2. )o. -A#

CHAPTER V

COPYRIGHT OR ECONOMIC RIGHTS

SEC. 1((. Co# or Econo"ic Rig0ts %ub8e t to the !rovisions of +ha!ter GIII, o!yright or e onomi rights shall onsist of the e6 lusive right to arry out, authori=e or !revent the following a ts: 144.1. (e!rodu tion of the work or substantial !ortion of the work$ 144.2 2ramati=ation, translation, ada!tation, abridgment, arrangement or other transformation of the work$ 144.&. /he first !ubli distribution of the original and ea h o!y of the work by sale or other forms of transfer of ownershi!$ 144.-. (ental of the original or a o!y of an audiovisual or inematogra!hi work, a work embodied in a sound re ording, a om!uter !rogram, a om!ilation of data and other materials or a musi al work in gra!hi form, irres!e tive of the ownershi! of the original or the o!y whi h is the sub8e t of the rental$ "n# 144.1. Publi dis!lay of the original or a o!y of the work$ 144.*. Publi !erforman e of the work$ and

144.4. 9ther ommuni ation to the !ubli of the work "%e . 1, P.2. )o. -Aa#

CHAPTER VI

OWNERSHIP OF COPYRIGHT
SEC. 1(*. Rules on Co# rig0t /wners0i# +o!yright ownershi! shall be governed by the following rules: 14'.1. %ub8e t to the !rovisions of this se tion, in the ase of original literary and artisti works, o!yright shall belong to the author of the work$ 14'.2. In the ase of works of 8oint authorshi!, the o7authors shall be the original owners of the o!yright and in the absen e of agreement, their rights shall be governed by the rules on o7 ownershi!. If, however, a work of 8oint authorshi! onsists of !arts that an be used se!arately and the author of ea h !art an be identified, the author of ea h !art shall be the original owner of the o!yright in the !art that he has reated$ 14'.&. In the ase of work reated by an author during and in the ourse of his em!loyment, the o!yright shall belong to: "a# /he em!loyee, if the reation of the ob8e t of o!yright is not a !art of his regular duties even if the em!loyee uses the time, fa ilities and materials of the em!loyer. "b# /he em!loyer, if the work is the result of the !erforman e of his regularly7assigned duties, unless there is an agreement, e6!ress or im!lied, to the ontrary. 14'.-. In the ase of a work7 ommissioned by a !erson other than an em!loyer of the author and who !ays for it and the work is made in !ursuan e of the ommission, the !erson who so ommissioned the work shall have ownershi! of work, but the o!yright thereto shall remain with the reator, unless there is a written sti!ulation to the ontrary$ 14'.1. In the ase of audiovisual work, the o!yright shall belong to the !rodu er, the author of the s enario, the om!oser of the musi , the film dire tor, and the author of the work so ada!ted. Bowever, sub8e t to ontrary or other sti!ulations among the reators, the !rodu ers shall e6er ise the o!yright to an e6tent re,uired for the e6hibition of the work in any manner, e6 e!t for the right to olle t !erforming li ense fees for the !erforman e of musi al om!ositions, with or without words, whi h are in or!orated into the work$ and 14'.*. In res!e t of letters, the o!yright shall belong to the writer sub8e t to the !rovisions of Arti le 42& of the +ivil +ode. "%e . *, P.2. )o. -Aa# SEC. 1(-. Anon "ous and 3seudon "ous 9orks ;or !ur!oses of this A t, the !ublishers shall be deemed to re!resent the authors of arti les and other writings !ublished without the names of the authors or under !seudonyms, unless the ontrary a!!ears, or the !seudonyms or ado!ted name leaves no doubts as to the author:s identity, or if the author of the anonymous works dis loses his identity. "%e . 4, P.2. -A#

CHAPTER VII

TRANSFER OR ASSIGNMENT OF COPYRIGHT

SEC. 1*.. Rig0ts of Assignee 1'..1. /he o!yright may be assigned in whole or in !art. <ithin the s o!e of the assignment, the assignee is entitled to all the rights and remedies whi h the assignor had with res!e t to the o!yright. 1'..2. /he o!yright is not deemed assigned inter vivos in whole or in !art unless there is a written indi ation of su h intention. 1'..&. /he submission of a literary, !hotogra!hi or artisti work to a news!a!er, maga=ine or !eriodi al for !ubli ation shall onstitute only a li ense to make a single !ubli ation unless a greater right is e6!ressly granted. If two "2# or more !ersons 8ointly own a o!yright or any !art thereof, neither of the owners shall be entitled to grant li enses without the !rior written onsent of the other owner or owners. "%e . 11, P.2. )o. -Aa# SEC. 1*1. Co# rig0t and Material /b;ect /he o!yright is distin t from the !ro!erty in the material ob8e t sub8e t to it. +onse,uently, the transfer or assignment of the o!yright shall not itself onstitute a transfer of the material ob8e t. )or shall a transfer or assignment of the sole o!y or of one or several o!ies of the work im!ly transfer or assignment of the o!yright. "%e . 1*, P.2. )o. -A#

SEC. 1*2. )iling of Assign"ent of 8icense An assignment or e6 lusive li ense may be filed in du!li ate with the )ational ?ibrary u!on !ayment of the !res ribed fee for registration in books and re ords ke!t for the !ur!ose. @!on re ording, a o!y of the instrument shall be, returned to the sender with a notation of the fa t of re ord. )oti e of the re ord shall be !ublished in the IP9 3a=ette. "%e . 1A, P.2. )o. -Aa# SEC 1*3. Designation of Societ /he o!yright owners or their heirs may designate a so iety of artists, writers or om!osers to enfor e their e onomi rights and moral rights on their behalf. "%e . &2, P.2. )o. -Aa#

CHAPTER VIII

LIMITATIONS ON COPYRIGHT
SEC. 1*!. 8i"itations on Co# rig0t 1'-.1. )otwithstanding the !rovisions of +ha!ter G, the following a ts shall not onstitute infringement of o!yright:

"a# the re itation or !erforman e of a work, on e it has been lawfully made a essible to the !ubli , if done !rivately and free of harge or if made stri tly for a haritable or religious institution or so iety$ "%e . 1."1#, P.2. )o.-A# "b# /he making of ,uotations from a !ublished work if they are om!atible with fair use and only to the e6tent 8ustified for the !ur!ose, in luding ,uotations from news!a!er arti les and !eriodi als in the form of !ress summaries: Provided, /hat the sour e and the name of the author, if a!!earing on the work, are mentioned$ "%e . 11, third !ar., P.2. )o. -A# " # /he re!rodu tion or ommuni ation to the !ubli by mass media of arti les on urrent !oliti al, so ial, e onomi , s ientifi or religious to!i , le tures, addresses and other works of the same nature, whi h are delivered in !ubli if su h use is for information !ur!oses and has not been e6!ressly reserved: Provided, /hat the sour e is learly indi ated$ "%e . 11, P.2. )o. -A# "d# /he re!rodu tion and ommuni ation to the !ubli of literary, s ientifi or artisti works as !art of re!orts of urrent events by means of !hotogra!hy, inematogra!hy or broad asting to the e6tent ne essary for the !ur!ose$ "%e . 12, P.2. )o. -A# "e# /he in lusion of a work in a !ubli ation, broad ast, or other ommuni ation to the !ubli , sound re ording or film, if su h in lusion is made by way of illustration for tea hing !ur!oses and is om!atible with fair use: Provided, /hat the sour e and of the name of the author, if a!!earing in the work, are mentioned$ "f# /he re ording made in s hools, universities, or edu ational institutions of a work in luded in a broad ast for the use of su h s hools, universities or edu ational institutions: Provided, /hat su h re ording must be deleted within a reasonable !eriod after they were first broad ast: Provided, further, /hat su h re ording may not be made from audiovisual works whi h are !art of the general inema re!ertoire of feature films e6 e!t for brief e6 er!ts of the work$ "g# /he making of e!hemeral re ordings by a broad asting organi=ation by means of its own fa ilities and for use in its own broad ast$ "h# /he use made of a work by or under the dire tion or ontrol of the 3overnment, by the )ational ?ibrary or by edu ational, s ientifi or !rofessional institutions where su h use is in the !ubli interest and is om!atible with fair use$ "i# /he !ubli !erforman e or the ommuni ation to the !ubli of a work, in a !la e where no admission fee is harged in res!e t of su h !ubli !erforman e or ommuni ation, by a lub or institution for haritable or edu ational !ur!ose only, whose aim is not !rofit making, sub8e t to su h other limitations as may be !rovided in the (egulations$ "n# "8# Publi dis!lay of the original or a o!y of the work not made by means of a film, slide, television image or otherwise on s reen or by means of any other devi e or !ro ess: Provided, /hat either the work has been !ublished, or, that original or the o!y dis!layed has been sold, given away or otherwise transferred to another !erson by the author or his su essor in title$ and "k# Any use made of a work for the !ur!ose of any 8udi ial !ro eedings or for the giving of !rofessional advi e by a legal !ra titioner. 1'-.2. /he !rovisions of this se tion shall be inter!reted in su h a way as to allow the work to be used in a manner whi h does not onfli t with the normal e6!loitation of the work and does not unreasonably !re8udi e the right holderHs legitimate interest. SEC. 1*$. )air 6se of a Co# rig0ted 9ork 1'1.1. /he fair use of a o!yrighted work for riti ism, omment, news re!orting, tea hing in luding multi!le o!ies for lassroom use, s holarshi!, resear h, and similar !ur!oses is not an infringement of o!yright. 2e om!ilation, whi h is understood here to be the re!rodu tion of the ode and translation of the forms of the om!uter !rogram to a hieve the inter7o!erability of an inde!endently reated om!uter !rogram with other !rograms may also onstitute fair use. In

determining whether the use made of a work in any !arti ular ase is fair use, the fa tors to be onsidered shall in lude: "a# /he !ur!ose and hara ter of the use, in luding whether su h use is of a ommer ial nature or is for non7!rofit edu ation !ur!oses$ "b# /he nature of the o!yrighted work$ " # /he amount and substantiality of the !ortion used in relation to the o!yrighted work as a whole$ and "d# /he effe t of the use u!on the !otential market for or value of the o!yrighted work. 1'1.2 /he fa t that a work is un!ublished shall not by itself bar a finding of fair use if su h finding is made u!on onsideration of all the above fa tors. SEC. 1*'. 9ork of Arc0itecture +o!yright in a work of ar hite ture shall in lude the right to ontrol the ere tion of any building whi h re!rodu es the whole or a substantial !art of the work either in its original form or in any form re ogni=ably derived from the original$ Provided, /hat the o!yright in any su h work shall not in lude the right to ontrol the re onstru tion or rehabilitation in the same style as the original of a building to whi h the o!yright relates. "n# SEC. 1*(. Re#roduction of 3ublis0ed 9ork 1'4.1. )otwithstanding the !rovision of %e tion 144, and sub8e t to the !rovisions of %ubse tion 1'4.2, the !rivate re!rodu tion of a !ublished work in a single o!y, where the re!rodu tion is made by a natural !erson e6 lusively for resear h and !rivate study, shall be !ermitted, without the authori=ation of the owner of o!yright in the work. 1'4.2. /he !ermission granted under %ubse tion 1'4.1 shall not e6tend to the re!rodu tion of: "a# A work of ar hite ture in form of building or other onstru tion$ "b# An entire book, or a substantial !ast thereof, or of a musi al work in whi h gra!hi s form by re!rogra!hi means$ " # A om!ilation of data and other materials$ "d# A om!uter !rogram e6 e!t as !rovided in %e tion 1'A$ and "e# Any work in ases where re!rodu tion would unreasonably onfli t with a normal e6!loitation of the work or would otherwise unreasonably !re8udi e the legitimate interests of the author."n# SEC. 1**. Re#rogra#0ic Re#roduction b 8ibraries 1''.1. )otwithstanding the !rovisions of %ubse tion 144.*, any library or ar hive whose a tivities are not for !rofit may, without the authori=ation of the author of o!yright owner, make a single o!y of the work by re!rogra!hi re!rodu tion: "a# <here the work by reason of its fragile hara ter or rarity annot be lent to user in its original form$ "b# <here the works are isolated arti les ontained in om!osite works or brief !ortions of other !ublished works and the re!rodu tion is ne essary to su!!ly them$ when this is onsidered e6!edient, to !erson re,uesting their loan for !ur!oses of resear h or study instead of lending the volumes or booklets whi h ontain them$ and " # <here the making of su h a o!y is in order to !reserve and, if ne essary in the event that it is lost, destroyed or rendered unusable, re!la e a o!y, or to re!la e, in the !ermanent olle tion of another similar library or ar hive, a o!y whi h has been lost, destroyed or rendered unusable and o!ies are not available with the !ublisher.

1''.2. )otwithstanding the above !rovisions, it shall not be !ermissible to !rodu e a volume of a work !ublished in several volumes or to !rodu e missing tomes or !ages of maga=ines or similar works, unless the volume, tome or !art is out of sto k$ Provided, /hat every library whi h, by law, is entitled to re eive o!ies of a !rinted work, shall be entitled, when s!e ial reasons so re,uire, to re!rodu e a o!y of a !ublished work whi h is onsidered ne essary for the olle tion of the library but whi h is out of sto k. "%e . 1&, P.2. -Aa# SEC. 1*-. Re#roduction of Co"#uter 3rogra" 1'A.1. )otwithstanding the !rovisions of %e tion 144, the re!rodu tion in one "1# ba k7u! o!y or ada!tation of a om!uter !rogram shall be !ermitted, without the authori=ation of the author of, or other owner of o!yright in, a om!uter !rogram, by the lawful owner of that om!uter !rogram: Provided, /hat the o!y or ada!tation is ne essary for: "a# /he use of the om!uter !rogram in on8un tion with a om!uter for the !ur!ose, and to the e6tent, for whi h the om!uter !rogram has been obtained$ and "b# Ar hival !ur!oses, and, for the re!la ement of the lawfully owned o!y of the om!uter !rogram in the event that the lawfully obtained o!y of the om!uter !rogram is lost, destroyed or rendered unusable. 1'A.2. )o o!y or ada!tation mentioned in this %e tion shall be used for any !ur!ose other than the ones determined in this %e tion, and any su h o!y or ada!tation shall be destroyed in the event that ontinued !ossession of the o!y of the om!uter !rogram eases to be lawful. 1'A.&. /his !rovision shall be without !re8udi e to the a!!li ation of %e tion 1'1 whenever a!!ro!riate. "n# SEC. 1-.. 2"#ortation for 3ersonal 3ur#oses 1A..1. )otwithstanding the !rovision of %ubse tion 144.*, but sub8e t to the limitation under the %ubse tion 1'1.2, the im!ortation of a o!y of a work by an individual for his !ersonal !ur!oses shall be !ermitted without the authori=ation of the author of, or other owner of o!yright in, the work under the following ir umstan es: "a# <hen o!ies of the work are not available in the Phili!!ines and: )ot more than one "1# o!y at one time is im!orted for stri tly individual use only$ or "ii# /he im!ortation is by authority of and for the use of the Phili!!ine 3overnment$ or "iii# /he im!ortation, onsisting of not more than three "&# su h o!ies or likenesses in any one invoi e, is not for sale but for the use only of any religious, haritable, or edu ational so iety or institution duly in or!orated or registered, or is for the en ouragement of the fine arts, or for any state s hool, ollege, university, or free !ubli library in the Phili!!ines. "b# <hen su h o!ies form !arts of libraries and !ersonal baggage belonging to !ersons or families arriving from foreign ountries and are not intended for sale: Provided, /hat su h o!ies do not e6 eed three "&#. 1A..2. +o!ies im!orted as allowed by this %e tion may not lawfully be used in any way to violate the rights of owner the o!yright or annul or limit the !rote tion se ured by this A t, and su h unlawful use shall be deemed an infringement and shall be !unishable as su h without !re8udi e to the !ro!rietor:s right of a tion. "i#

1A..&. %ub8e t to the a!!roval of the %e retary of ;inan e, the +ommissioner of +ustoms is hereby em!owered to make rules and regulations for !reventing the im!ortation of arti les the im!ortation of whi h is !rohibited under this %e tion and under treaties and onventions to whi h the Phili!!ines may be a !arty and for sei=ing and ondemning and dis!osing of the same in ase they are dis overed after they have been im!orted. "%e . &., P.2. )o. -A#

CHAPTER IX

DEPOSIT AND NOTICE

SEC. 1-1. Registration and De#osit wit0 4ational 8ibrar and t0e Su#re"e Court 8ibrar After the first !ubli dissemination of !erforman e by authority of the o!yright owner of a work falling under %ubse tions 142.1, 142.2 and 142.& of this A t, there shall, for the !ur!ose of om!leting the re ords of the )ational ?ibrary and the %u!reme +ourt ?ibrary, within three "&# weeks, be registered and de!osited with it, by !ersonal delivery or by registered mail, two "2# om!lete o!ies or re!rodu tions of the work in su h form as the dire tors of said libraries may !res ribe. A ertifi ate of de!osit shall be issued for whi h the !res ribed fee shall be olle ted and within three "&# weeks after re ei!t by the o!yright owner of a written demand o!yright owner shall be e6em!t from making additional de!osit of the works with the )ational ?ibrary and the %u!reme +ourt ?ibrary under other laws. If, within three "&# weeks after re ei!t by the o!yright owner of a written demand from the dire tors for su h de!osit, the re,uired o!ies or re!rodu tions are not delivered and the fee is not !aid, the o!yright owner shall be liable to !ay a fine e,uivalent to the re,uired fee !er month of delay and to !ay to the )ational ?ibrary and the %u!reme +ourt ?ibrary the amount of the retail !ri e of the best edition of the work. 9nly the above mentioned lasses of work shall be a e!ted for de!osit by the )ational ?ibrary and the %u!reme +ourt ?ibrary. "%e . 2*, P.2. )o. -Aa#

SEC. 1-2. 4otice of Co# rig0t 5a h o!y of a work !ublished or offered for sale may ontain a noti e bearing the name of the o!yright owner, and the year of its first !ubli ation, and, in o!ies !rodu ed after the reator:s death, the year of su h death. "%e . 24, P.2. )o. -Aa#

CHAPTER X

MORAL RIGHTS
SEC. 1-3. Sco#e of Moral Rig0ts /he author of a work shall, inde!endently of the e onomi rights in %e tion 144 or the grant of an assignment or li ense with res!e t to su h right, have the right: 1A&.1. /o re,uire that the authorshi! of the works be attributed to him, in !arti ular, the right that his name, as far as !ra ti able, be indi ated in a !rominent way on the o!ies, and in onne tion with the !ubli use of his work$ 1A&.2. /o make any alterations of his work !rior to, or to withhold it from !ubli ation$

1A&.&. /o ob8e t to any distortion, mutilation or other modifi ation of, or other derogatory a tion in relation to, his work whi h would be !re8udi ial to his honor or re!utation$ and 1A&.-. /o restrain the use of his name with res!e t to any work not of his own reation or in a distorted version of his work. "%e . &-, P.2. )o. -A# SEC. 1-!. =reac0 of Contract An author annot be om!elled to !erform his ontra t to reate a work or for the !ubli ation of his work already in e6isten e. Bowever, he may be held liable for damages for brea h of su h ontra t. "%e . &1, P.2. )o. -A# SEC. 1-$. 9ai&er of Moral Rig0ts An author may waive his rights mentioned in %e tion 1A& by a written instrument, but no su h waiver shall be valid where its effe ts is to !ermit another: 1A1.1. /o use the name of the author, or the title of his work, or otherwise to make use of his re!utation with res!e t to any version or ada!tation of his work whi h, be ause of alterations therein, would substantially tend to in8ure the literary or artisti re!utation of another author$ or 1A1.2. /o use the name of the author with res!e t to a work he did not reate. "%e . &*, P.2. )o. -A# SEC. 1-'. Contribution to Collecti&e 9ork <hen an author ontributes to a olle tive work, his right to have his ontribution attributed to him is deemed waived unless he e6!ressly reserves it. "%e . &4. P.2. )o. -A# SEC. 1-(. Editing: Arranging and Ada#tation of 9ork In the absen e of a ontrary sti!ulation at the time an author li enses or !ermits another to use his work, the ne essary editing, arranging or ada!tation of su h work, for !ubli ation, broad ast, use in a motion !i ture, dramati=ation, or me hani al or ele tri al re!rodu tion in a ordan e with the reasonable and ustomary standards or re,uirements of the medium in whi h the work is to be used, shall not be deemed to ontravene the authorHs rights se ured by this ha!ter. )or shall om!lete destru tion of a work un onditionally tranferred by the author be deemed to violate su h rights. "%e . &', P.2. )o. -A#

SEC. 1-*. 7er" of Moral Rig0ts 1A'.1. /he rights of an author under this ha!ter shall last during the lifetime of the author and for fifty "1.# years after his death and shall not be assignable or sub8e t to li ense. /he !erson or !ersons to be harged with the !osthumous enfor ement of these rights shall be named in writing to be filed with the )ational ?ibrary. In default of su h !erson or !ersons, su h enfor ement shall devolve u!on either the authorHs heirs, and in default of the heirs, the 2ire tor of the )ational ?ibrary. 1A'.2. ;or !ur!oses of this %e tion, "Person" shall mean any individual, !artnershi!, or!oration, asso iation, or so iety. /he 2ire tor of the )ational ?ibrary may !res ribe reasonable fees to be harged for his servi es in the a!!li ation of !rovisions of this %e tion. "%e . &A, P.2. )o. -A#

SEC. 1--. Enforce"ent Re"edies Giolation of any of the rights onferred by this +ha!ter shall entitle those harged with their enfor ement to the same rights and remedies available to a o!yright owner. In addition, damages whi h may be availed of under the +ivil +ode may also be re overed. Any damage re overed after the reatorHs death shall be held in trust for and remitted to his heirs, and in default of the heirs, shall belong to the government. "%e . -., P.2. )o. -A#

CHAPTER XI

RIGHTS TO PROCEEDS IN SUBSE UENT TRANSFERS

SEC. 2... Sale or 8ease of 9ork In every sale or lease of an original work of !ainting or s ul!ture or of the original manus ri!t of a writer or om!oser, subse,uent to the first dis!osition thereof by the author, the author or his heirs shall have an inalienable right to !arti i!ate in the gross !ro eeds of the sale or lease to the e6tent of five !er ent "1I#. /his right shall e6ist during the lifetime of the author and for fifty "1.# years after his death. "%e . &1, P.2. )o. -A#

SEC. 2.1. 9orks 4ot Co&ered /he !rovisions of this +ha!ter shall not a!!ly to !rints, et hings, engravings, works of a!!lied art, or works of similar kind wherein the author !rimarily derives gain from the !ro eeds of re!rodu tions. "%e . &&, P.2. )o. -A#

CHAPTER XII

RIGHTS OF PERFORMERS, PRODUCERS OF SOUND RECORDINGS AND BROADCASTING ORGANI!ATIONS

SEC. 2.2. Definitions ;or the !ur!ose of this A t, the following terms shall have the following meanings: 2.2.1. "Performers" are a tors, singers, musi ians, dan ers, and other !ersons who a t, sing, de laim, !lay in, inter!ret, or otherwise !erform literary and artisti work$ 2.2.2. "%ound re ording" means the fi6ation of the sounds of a !erforman e or of other sounds, or re!resentation of sound, other than in the form of a fi6ation in or!orated in a inematogra!hi or other audiovisual work$ 2.2.&. An "audiovisual work or fi6ation" is a work that onsists of a series of related images whi h im!art the im!ression of motion, with or without a om!anying sounds, sus e!tible of being made visible and, where a om!anied by sounds, sus e!tible of being made audible$

2.2.-. ";i6ation" means the embodiment of sounds, or of the re!resentations thereof, from whi h they an be !er eived, re!rodu ed or ommuni ated through a devi e$ 2.2.1. "Produ er of a sound re ording" means the !erson, or the legal entity, who or whi h takes the initiative and has the res!onsibility for the first fi6ation of the sounds of a !erforman e or other sounds, or the re!resentation of sounds$ 2.2.*. "Publi ation of a fi6ed !erforman e or a sound re ording" means the offering of o!ies of the fi6ed !erforman e or the sound re ording to the !ubli , with the onsent of the right holder: Provided, /hat o!ies are offered to the !ubli in reasonable ,uality$ 2.2.4. "0road asting" means the transmission by wireless means for the !ubli re e!tion of sounds or of images or of re!resentations thereof$ su h transmission by satellite is also "broad asting" where the means for de ry!ting are !rovided to the !ubli by the broad asting organi=ation or with its onsent$ 2.2.'. "0road asting organi=ation" shall in lude a natural !erson or a 8uridi al entity duly authori=ed to engage in broad asting$ and 2.2.A. "+ommuni ation to the !ubli of a !erforman e or a sound re ording" means the transmission to the !ubli , by any medium, otherwise than by broad asting, of sounds of a !erforman e or the re!resentations of sounds fi6ed in a sound re ording. ;or !ur!oses of %e tion 2.A, " ommuni ation to the !ubli " in ludes making the sounds or re!resentations of sounds fi6ed in a sound re ording audible to the !ubli . SEC. 2.3. Sco#e of 3erfor"ers> Rig0ts %ub8e t to the !rovisions of %e tion 212, !erformers shall en8oy the following e6 lusive rights: 2.&.1. As regards their !erforman es, the right of authori=ing: "a# /he broad asting and other ommuni ation to the !ubli of their !erforman e$ and "b# /he fi6ation of their unfi6ed !erforman e. 2.&.2. /he right of authori=ing the dire t or indire t re!rodu tion of their !erforman es fi6ed in sound re ordings, in any manner or form$ 2.&.&. %ub8e t to the !rovisions of %e tion 2.*, the right of authori=ing the first !ubli distribution of the original and o!ies of their !erforman e fi6ed in the sound re ording through sale or rental or other forms of transfer of ownershi!$ 2.&.-. /he right of authori=ing the ommer ial rental to the !ubli of the original and o!ies of their !erforman es fi6ed in sound re ordings, even after distribution of them by, or !ursuant to the authori=ation by the !erformer$ and 2.&.1. /he right of authori=ing the making available to the !ubli of their !erforman es fi6ed in sound re ordings, by wire or wireless means, in su h a way that members of the !ubli may a ess them from a !la e and time individually hosen by them. "%e . -2, P.2. )o. -Aa#

SEC. 2.!. Moral Rig0ts of 3erfor"ers 2.-.1. Inde!endently of a !erformerHs e onomi rights, the !erformer, shall, as regards his live aural !erforman es or !erforman es fi6ed in sound re ordings, have the right to laim to be

identified as the !erformer of his !erforman es, e6 e!t where the omission is di tated by the manner of the use of the !erforman e, and to ob8e t to any distortion, mutilation or other modifi ation of his !erforman es that would be !re8udi ial to his re!utation. 2.-.2. /he rights granted to a !erformer in a ordan e with %ubse tion 2.&.1 shall be maintained and e6er ised fifty "1.# years after his death, by his heirs, and in default of heirs, the government, where !rote tion is laimed. "%e . -&, P.2. no. -A#

SEC. 2.$. 8i"itation on Rig0t 2.1.1. %ub8e t to the !rovisions of %e tion 2.*, on e the !erformer has authori=ed the broad asting or fi6ation of his !erforman e, the !rovisions of %e tions 2.& shall have no further a!!li ation. 2.1.2. /he !rovisions of %e tion 1'- and %e tion 1'1 shall a!!ly mutatis mutandis to !erformers. "n#

SEC. 2.'. Additional Re"uneration for Subsequent Co""unications or =roadcasts @nless otherwise !rovided in the ontra t, in every ommuni ation to the !ubli or broad ast of a !erforman e subse,uent to the first ommuni ation or broad ast thereof by the broad asting organi=ation, the !erformer shall be entitled to an additional remuneration e,uivalent to at least five !er ent "1I# of the original om!ensation he or she re eived for the first ommuni ation or broad ast. "n#

SEC. 2.(. Contract 7er"s )othing in this +ha!ter shall be onstrued to de!rive !erformers of the right to agree by ontra ts on terms and onditions more favorable for them in res!e t of any use of their !erforman e. "n#

CHAPTER XIII

PRODUCERS OF SOUND RECORDINGS

SEC. 2.*. Sco#e of Rig0t %ub8e t to the !rovisions of %e tion 212, !rodu ers of sound re ordings shall en8oy the following e6 lusive rights: 2.'.1. /he right to authori=e the dire t or indire t re!rodu tion of their sound re ordings, in any manner or form$ the !la ing of these re!rodu tions in the market and the right of rental or lending$ 2.'.2. /he right to authori=e the first !ubli distribution of the original and o!ies of their sound re ordings through sale or rental or other forms of transferring ownershi!$ and 2.'.&. /he right to authori=e the ommer ial rental to the !ubli of the original and o!ies of their sound re ordings, even after distribution by them by or !ursuant to authori=ation by the !rodu er. "%e . -*, P.2. )o. -Aa#

SEC. 2.-. Co""unication to t0e 3ublic If a sound re ording !ublished for ommer ial !ur!oses, or a re!rodu tion of su h sound re ording, is used dire tly for broad asting or for other ommuni ation to the !ubli , or is !ubli ly !erformed with the intention of making and enhan ing !rofit, a single e,uitable remuneration for the !erformer or !erformers, and the !rodu er of the sound re ording shall be !aid by the user to both the !erformers and the !rodu er, who, in the absen e of any agreement shall share e,ually. "%e . -4, P.2. )o. -Aa# SEC. 21.. 8i"itation of Rig0t %e tions 1'- and 1'1 shall a!!ly mutatis mutandis to the !rodu er of sound re ordings. "%e . -', P.2. )o. -Aa#

CHAPTER XIV =R/ADCAS724+ /R+A42?A72/4S SEC. 211. Sco#e of Rig0t %ub8e t to the !rovisions of %e tion 212, broad asting organi=ations shall en8oy the e6 lusive right to arry out, authori=e or !revent any of the following a ts: 211.1. /he rebroad asting of their broad asts$ 211.2. /he re ording in any manner, in luding the making of films or the use of video ta!e, of their broad asts for the !ur!ose of ommuni ation to the !ubli of television broad asts of the same$ and 211.&. /he use of su h re ords for fresh transmissions or for fresh re ording. "%e . 12, P.2. )o. -A#

CHAPTER XV

LIMITATIONS ON PROTECTION
Sec. 212. 8i"itations on Rig0ts %e tions 2.&, 2.' and 2.A shall not a!!ly where the a ts referred to in those %e tions are related to: 212.1. /he use by a natural !erson e6 lusively for his own !ersonal !ur!oses$ 212.2. @sing short e6 er!ts for re!orting urrent events$ 212.&. @se solely for the !ur!ose of tea hing or for s ientifi resear h$ and 212.-. ;air use of the broad ast sub8e t to the onditions under se tion 1'1. "%e . --, P.2. no. -Aa#

CHAPTER XVI

TERM OF PROTECTION
SEC. 213. 7er" of 3rotection 21&.1. %ub8e t to the !rovisions of %ubse tions 21&.2 to 21&.1, the o!yright in works under %e tions 142 and 14& shall be !rote ted during the life of the author and for fifty "1. years after his death. /his rule also a!!lies to !osthumous works. "%e . 21, first senten e, P.2. )o. -Aa# 21&.2. In ase of works of 8oint authorshi!, the e onomi rights shall be !rote ted during the life of the last surviving author and for fifty "1.# years after his death. "%e . 21, se ond senten e, P.2. no. -A# 21&.&. In ase of anonymous or !seudonymous works, the o!yright shall be !rote ted for fifty "1.# years from the date on whi h the work was first lawfully !ublished: Provided, /hat where, before the e6!iration of the said !eriod, the authorHs identity is revealed or is no longer in doubt, the !rovisions of %ubse tions 21&.1 and 21&.2 shall a!!ly, as the ase may be: Provided, further, /hat su h works if not !ublished before shall be !rote ted for fifty "1.# years ounted from the making of the work. "%e . 2&, P.2. )o. -A# 21&.-. In ase of works of a!!lied art the !rote tion shall be for a !eriod of twenty7five "21# years from the date of making. "%e . 2-"0#, P.2. )o. -Aa# 21&.1. In ase of !hotogra!hi works, the !rote tion shall be for fifty "1.# years from !ubli ation of the work and, if un!ublished, fifty "1.# years from the making. "%e . 2-"+#, P.2. -Aa# 21&.*. In ase of audio7visual works in luding those !rodu ed by !ro ess analogous to !hotogra!hy or any !ro ess for making audio7visual re ordings, the term shall be fifty "1.# years from date of !ubli ation and, if un!ublished, from the date of making. "%e . 2-"+#, P.2. )o. -Aa#

SEC. 21!. Calculation of 7er" /he term of !rote tion subse,uent to the death of the author !rovided in the !re eding %e tion shall run from the date of his death or of !ubli ation, but su h terms shall always be deemed to begin on the first day of Canuary of the year following the event whi h gave rise to them. "%e . 21, P.2. )o. -A# SEC. 21$. 7er" of 3rotection for 3erfor"ers: 3roducers and =roadcasting /rgani@ations 211.1. /he rights granted to !erformers and !rodu ers of sound re ordings under this law shall e6!ire: "a# ;or !erforman es not in or!orated in re ordings, fifty "1.# years from the end of the year in whi h the !erforman e took !la e$ and "b# ;or sound or image and sound re ordings and for !erforman es in or!orated therein, fifty "1.# years from the end of the year in whi h the re ording took !la e.

211.2. In ase of broad asts, the term shall be twenty "2.# years from the date the broad ast took !la e. /he e6tended term shall be a!!lied only to old works with subsisting !rote tion under the !rior law. "%e . 11, P.2. )o. -Aa#

CHAPTER XVII

INFRINGEMENT
SEC. 21'. Re"edies for 2nfringe"ent 21*.1. Any !erson infringing a right !rote ted under this law shall be liable: "a# /o an in8un tion restraining su h infringement. /he ourt may also order the defendant to desist from an infringement, among others, to !revent the entry into the hannels of ommer e of im!orted goods that involve an infringement, immediately after ustoms learan e of su h goods. "b# Pay to the o!yright !ro!rietor or his assigns or heirs su h a tual damages, in luding legal osts and other e6!enses, as he may have in urred due to the infringement as well as the !rofits the infringer may have made due to su h infringement, and in !roving !rofits the !laintiff shall be re,uired to !rove sales only and the defendant shall be re,uired to !rove every element of ost whi h he laims, or, in lieu of a tual damages and !rofits, su h damages whi h to the ourt shall a!!ear to be 8ust and shall not be regarded as !enalty. " # 2eliver under oath, for im!ounding during the !enden y of the a tion, u!on su h terms and onditions as the ourt may !res ribe, sales invoi es and other do uments eviden ing sales, all arti les and their !a kaging alleged to infringe a o!yright and im!lements for making them. "d# 2eliver under oath for destru tion without any om!ensation all infringing o!ies or devi es, as well as all !lates, molds, or other means for making su h infringing o!ies as the ourt may order. "e# %u h other terms and onditions, in luding the !ayment of moral and e6em!lary damages, whi h the ourt may deem !ro!er, wise and e,uitable and the destru tion of infringing o!ies of the work even in the event of a ,uittal in a riminal ase. 21*. 2. In an infringement a tion, the ourt shall also have the !ower to order the sei=ure and im!ounding of any arti le whi h may serve as eviden e in the ourt !ro eedings. "%e . 2', P.2. )o. -Aa# SEC. 21(. Cri"inal 3enalties 214.1. Any !erson infringing any right se ured by !rovisions of Part IG of this A t or aiding or abetting su h infringement shall be guilty of a rime !unishable by: "a# Im!risonment of one "1# year to three "&# years !lus a fine ranging from ;ifty thousand !esos "P1.,...# to 9ne hundred fifty thousand !esos "P11.,...# for the first offense. "b# Im!risonment of three "&# years and one "1# day to si6 "*# years !lus a fine ranging from 9ne hundred fifty thousand !esos "P11.,...# to ;ive hundred thousand !esos "P1..,...# for the se ond offense. " # Im!risonment of si6 "*# years and one "1# day to nine "A# years !lus a fine ranging from ;ive hundred thousand !esos "P1..,...# to 9ne million five hundred thousand !esos "P1,1..,...# for the third and subse,uent offenses. "d# In all ases, subsidiary im!risonment in ases of insolven y.

214.2. In determining the number of years of im!risonment and the amount of fine, the ourt shall onsider the value of the infringing materials that the defendant has !rodu ed or manufa tured and the damage that the o!yright owner has suffered by reason of the infringement. 214.&. Any !erson who at the time when o!yright subsists in a work has in his !ossession an arti le whi h he knows, or ought to know, to be an infringing o!y of the work for the !ur!ose of: "a# %elling, letting for hire, or by way of trade offering or e6!osing for sale, or hire, the arti le$ "b# 2istributing the arti le for !ur!ose of trade, or for any other !ur!ose to an e6tent that will !re8udi e the rights of the o!yright owner in the work$ or " # /rade e6hibit of the arti le in !ubli , shall be guilty of an offense and shall be liable on onvi tion to im!risonment and fine as above mentioned. "%e . 2A, P.2. )o. -Aa# SEC. 21*. Affida&it E&idence

21'.1. In an a tion under this +ha!ter, an affidavit made before a notary !ubli by or on behalf of the owner of the o!yright in any work or other sub8e t matter and stating that: "a# At the time s!e ified therein, o!yright subsisted in the work or other sub8e t matter& "b# Be or the !erson named therein is the owner of the o!yright$ and "c# The o!y of the work or other sub8e t matter anne6ed thereto is a true o!y thereof, shall be admitted in eviden e in any !ro eedings for an offense under this +ha!ter and shall be !rima fa ie !roof of the matters therein stated until the ontrary is !roved, and the ourt before whi h su h affidavit is !rodu ed shall assume that the affidavit was made by or on behalf of the owner of the o!yright.
21'.2. In an a tion under this +ha!ter. "a# +o!yright shall be !resumed to subsist in the work or other sub8e t matter to whi h the a tion relates if the defendant does not !ut in issue the ,uestion whether o!yright subsists in the work or other sub8e t matter$ and "b# <here the subsisten e of the o!yright is established, the !laintiff shall be !resumed to be the owner of the o!yright if he laims to be the owner of the o!yright and the defendant does not !ut in issue the ,uestion of his ownershi!. " # <here the defendant, without good faith, !uts in issue the ,uestions of whether o!yright subsists in a work or other sub8e t matter to whi h the a tion relates, or the ownershi! of o!yright in su h work or sub8e t matter, thereby o asioning unne essary osts or delay in the !ro eedings, the ourt may dire t that any osts to the defendant in res!e t of the a tion shall not be allowed by him and that any osts o asioned by the defendant to other !arties shall be !aid by him to su h other !arties. "n# SEC. 21-. 3resu"#tion of Aut0ors0i# 21A.1. /he natural !erson whose name is indi ated on a work in the usual manner as the author shall, in the absen e of !roof to the ontrary, be !resumed to be the author of the work. /his !rovision shall be a!!li able even if the name is a !seudonym, where the !seudonym leaves no doubt as to the identity of the author.

21A.2. /he !erson or body, or!orate whose name a!!ears on an audio7visual work in the usual manner shall, in the absen e of !roof to the ontrary, be !resumed to be the maker of said work. "n# SEC. 22.. 2nternational Registration of 9orks A statement on erning a work, re orded in an international register in a ordan e with an international treaty to whi h the Phili!!ines is or may be ome a !arty, shall be onstrued as true until the ontrary is !roved e6 e!t: 22..1. <here the statement annot be valid under this A t or any other law on erning intelle tual !ro!erty. 22..2. <here the statement is international register. "n# ontradi ted by another statement re orded in the

CHAPTER XVIII

SCOPE OF APPLICATION
SEC. 221. 3oints of Attac0"ent for 9orks under Sections 1(2 and 1(3 221.1. /he !rote tion afforded by this A t to o!yrightable works under %e tions 142 and 14& shall a!!ly to: "a# <orks of authors who are nationals of, or have their habitual residen e in the Phili!!ines$ "b# Audio7visual works the !rodu er of whi h has his head,uarters or habitual residen e in the Phili!!ines$ " # <orks of ar hite ture ere ted in the Phili!!ines or other artisti works in or!orated in a building or other stru ture lo ated in the Phili!!ines$ "d# <orks first !ublished in the Phili!!ines$ and "e# <orks first !ublished in another ountry but also !ublished in the Phili!!ines within thirty days, irres!e tive of the nationality or residen e of the authors. 221.2. /he !rovisions of this A t shall also a!!ly to works that are to be !rote ted by virtue of and in a ordan e with any international onvention or other international agreement to whi h the Phili!!ines is a !arty. "n# SEC. 222. 3oints of Attac0"ent for 3erfor"ers /he !rovisions of this A t on the !rote tion of !erformers shall a!!ly to:

222.1. Performers who are nationals of the Phili!!ines$ 222.2. Performers who are not nationals of the Phili!!ines but whose !erforman es: "a# /ake !la e in the Phili!!ines$ or "b# Are in or!orated in sound re ordings that are !rote ted under this A t$ or " # <hi h has not been fi6ed in sound re ording but are arried by broad ast ,ualifying for !rote tion under this A t. "n#

SEC. 223. 3oints of Attac0"ent for Sound Recordings /he !rovisions of this A t on the !rote tion of sound re ordings shall a!!ly to: 22&.1. sound re ordings the !rodu ers of whi h are nationals of the Phili!!ines$ and 22&.2. %ound re ordings that were first !ublished in the Phili!!ines. "n# SEC. 22!. 3oints of Attac0"ent for =roadcasts 22-.1. /he !rovisions of this A t on the !rote tion of broad asts shall a!!ly to: "a# 0road asts of broad asting organi=ations the head,uarters of whi h are situated in the Phili!!ines$ and "b# 0road asts transmitted from transmitters situated in the Phili!!ines. 22-.2. /he !rovisions of this A t shall also a!!ly to !erformers who, and to !rodu ers of sound re ordings and broad asting organi=ations whi h, are to be !rote ted by virtue of and in a ordan e with any international onvention or other international agreement to whi h the Phili!!ines is a !arty. "n#

CHAPTER XIX

INSTITUTION OF ACTIONS
SEC. 22$. <urisdiction <ithout !re8udi e to the !rovisions of %ubse tion 4.1" #, a tions under this A t shall be ogni=able by the ourts with a!!ro!riate 8urisdi tion under e6isting law. "%e . 14, P.2. )o.-Aa# SEC. 22'. Da"ages )o damages may be re overed under this A t after four "-# years from the time the ause of a tion arose. "%e . 1', P.2. )o. -A# SEC. 22(. /wners0i# of De#osit and 2nstru"ents All o!ies de!osited and instruments in writing filed with the )ational ?ibrary and the %u!reme +ourt ?ibrary in a ordan e with the !rovisions of this A t shall be ome the !ro!erty of the 3overment. "%e . *., P.2. )o. -A#

CHAPTER XX

MISCELLANEOUS PROVISIONS
SEC. 22(. /wners0i# of De#osit and 2nstru"ents

All o!ies de!osited and instruments in writing filed with the )ational ?ibrary and the %u!reme +ourt ?ibrary in a ordan e with the !rovisions of this A t shall be ome the !ro!erty of the 3overnment. "%e . *.,P.2. )o. -A# SEC. 22*. 3ublic Records /he se tion or division of the )ational ?ibrary and the %u!reme +ourt ?ibrary harged with re eiving o!ies and instruments de!osited and with kee!ing re ords re,uired under this A t and everything in it shall be o!ened to !ubli ins!e tion. /he 2ire tor of the )ational ?ibrary is em!owered to issue su h safeguards and regulations as may be ne essary to im!lement this %e tion and other !rovisions of this A t. "%e . *1, P.2. )o. -A# SEC. 22-. Co# rig0t Di&ision )ees /he +o!yright %e tion of the )ational ?ibrary shall be lassified as a 2ivision u!on the effe tivity of this A t. /he )ational ?ibrary shall have the !ower to olle t, for the dis harge of its servi es under this A t, su h fees as may be !romulgated by it from time to time sub8e t to the a!!roval of the 2e!artment Bead. "%e . *2, P.2. -Aa#

PART V

FINAL PROVISIONS
SEC. 23.. Equitable 3rinci#les to +o&ern 3roceedings In all inter !artes !ro eedings in the 9ffi e under this A t, the e,uitable !rin i!les of la hes, esto!!el, and a ,uies en e where a!!li able, may be onsidered and a!!lied. "%e . A7A, (.A. )o. 1*1#

SEC. 231. Re&erse Reci#rocit of )oreign 8aws Any ondition, restri tion, limitation, diminution, re,uirement, !enalty or any similar burden im!osed by the law of a foreign ountry on a Phili!!ine national seeking !rote tion of intelle tual !ro!erty rights in that ountry, shall re i!ro ally be enfor eable u!on nationals of said ountry, within Phili!!ine 8urisdi tion. "n#

SEC. 232. A##eals 232.1. A!!eals from de isions of regular ourts shall be governed by the (ules of +ourt. @nless restrained by a higher ourt, the 8udgment of the trial ourt shall be e6e utory even !ending a!!eal under su h terms and onditions as the ourt may !res ribe. 232.2. @nless e6!ressly !rovided in this A t or other statutes, a!!eals from de isions of administrative offi ials shall be !rovided in the (egulations. "n#

SEC. 233. /rgani@ation of t0e /ffice% E5e"#tion fro" t0e Salar Standardi@ation 8aw and t0e Attrition 8aw 233.1. /he 9ffi e shall be organi=ed within one "1# year after the a!!roval of this A t. It shall not be sub8e t to the !rovisions of (e!ubli A t. )o. 4-&.. 233.2. /he 9ffi e shall institute its own om!ensation stru ture: Provided, /hat the 9ffi e shall make its own system to onform as losely as !ossible with the !rin i!les !rovided for under (e!ubli A t )o. *41'. "n#

SEC. 23!. Abolition of t0e =ureau of 3atents: 7rade"arks: and 7ec0nolog 7ransfer /he 0ureau of Patents, /rademarks, and /e hnology /ransfer under the 2e!artment of /rade and Industry is hereby abolished. All une6!ended funds and fees, fines, royalties and other harges olle ted for the alendar year, !ro!erties, e,ui!ment and re ords of the 0ureau of Patents, /rademarks and /e hnology /ransfer, and su h !ersonnel as may be ne essary are hereby transferred to the 9ffi e. Personnel not absorbed or transferred to the 9ffi e shall en8oy the retirement benefits granted under e6isting law, otherwise, they shall be !aid the e,uivalent of one month basi salary for every year of servi e, or the e,uivalent nearest fra tions thereof favorable to them on the basis of the highest salary re eived. "n#

SEC. 23$. A##lications 3ending on Effecti&e Date of Act 23$.1. All a!!li ations for !atents !ending in the 0ureau of Patents, /rademarks and /e hnology /ransfer shall be !ro eeded with and !atents thereon granted in a ordan e with the A ts under whi h said a!!li ations were filed, and said A ts are hereby ontinued to be enfor ed, to this e6tent and for this !ur!ose only, notwithstanding the foregoing general re!eal thereof: Provided, /hat a!!li ations for utility models or industrial designs !ending at the effe tive date of this A t, shall be !ro eeded with in a ordan e with the !rovisions of this A t, unless the a!!li ants ele t to !rose ute said a!!li ations in a ordan e with the A ts under whi h they were filed. 23$.2. All a!!li ations for registration of marks or trade names !ending in the 0ureau of Patents, /rademarks and /e hnology /ransfer at the effe tive date of this A t may be amended, if !ra ti able to bring them under the !rovisions of this A t. /he !rose ution of su h a!!li ations so amended and the grant of registrations thereon shall be !ro eeded with in a ordan e with the !rovisions of this A t. If su h amendments are not made, the !rose ution of said a!!li ations shall be !ro eeded with and registrations thereon granted in a ordan e with the A ts under whi h said a!!li ations were filed, and said A ts hereby ontinued in for e to this e6tent for this !ur!ose only, notwithstanding the foregoing general re!eal thereof. "n#

SEC. 23'. 3reser&ation of E5isting Rig0ts )othing herein shall adversely affe t the rights on the enfor ement of rights in !atents, utility models, industrial designs, marks and works, a ,uired in good faith !rior to the effe tive date of this A t. "n#

SEC. 23(. 4otification on =erne A##endi5

/he Phili!!ines shall by !ro!er om!lian e with the re,uirements set forth under the A!!endi6 of the 0erne +onvention "Paris A t, 1A41# avail itself of the s!e ial !rovisions regarding develo!ing ountries, in luding !rovisions for li enses grantable by om!etent authority under the A!!endi6. "n#

SEC. 23*. A##ro#riations /he funds needed to arry out the !rovisions of this A t shall be harged to the a!!ro!riations of the 0ureau of Patents, /rademarks, and /e hnology /ransfer under the urrent 3eneral A!!ro!riations A t and the fees, fines, royalties and other harges olle ted by the 0ureau for the alendar year !ursuant to %e tions 1-.1 and 2&- of this A t. /hereafter su h sums as may be ne essary for its ontinued im!lementations shall be in luded in the annual 3eneral A!!ro!riations A t. "n#

SEC. 23-. Re#eals 23-.1. All A ts and !arts of A ts in onsistent herewith, more !arti ularly (e!ubli A t )o. 1*1, as amended$ (e!ubli A t no. 1**, as amended$ and Arti les 1'' and 1'A of the (evised Penal +ode$ Presidential 2e ree )o. -A, in luding Presidential 2e ree )o. 2'1, as amended, are hereby re!ealed. 23-.2. Marks registered under (e!ubli A t )o. 1** shall remain in for e but shall be deemed to have been granted under this A t and shall be due for renewal within the !eriod !rovided for under this A t and, u!on renewal, shall be re lassified in a ordan e with the International +lassifi ation. /rade names and marks registered in the %u!!lemental (egister under (e!ubli A t )o. 1** shall remain in for e but shall no longer be sub8e t to renewal. 23-.3. /he !rovisions of this A t shall a!!ly to works in whi h o!yright !rote tion obtained !rior to the effe tivity of this A t is subsisting: Provided, /hat the a!!li ation of this A t shall not result in the diminution of su h !rote tion. "n#

SEC. 2!.. Se#arabilit If any !rovision of this A t or the a!!li ation of su h !rovision to any ir umstan es is held invalid, the remainder of the A t shall not be affe ted thereby. "n#

SEC. 2!1. Effecti&it /his A t shall take effe t on 1 Canuary 1AA'. "n#