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PART II THE LAW ON PATENTS CHAPTER I GENERAL PROVISIONS Section 20.

Definition of Terms Used in Part II, The Law on Patents . - As used in Part II, the following terms shall have the following meanings: 20.1. "Bureau" means the Bureau of Patents, 20.2. "Dire tor" means the Dire tor of Patents! 20.". "#egulations" means the #ules of Pra ti e in Patent $ases formulated %& the Dire tor of Patents and 'romulgated %& the Dire tor (eneral! 20.). "*+aminer" means the 'atent e+aminer! 20.,. "Patent a''li ation" or "a''li ation" means an a''li ation for a 'atent for an invention e+ e't in $ha'ters -II and -III, where "a''li ation" means an a''li ation for a utilit& model and an industrial design, res'e tivel&! and 20... "Priorit& date" means the date of filing of the foreign a''li ation for the same invention referred to in /e tion "1 of this A t. 0n1 CHAPTER II PATENTABILITY Section 21. Patentable Inventions. - An& te hni al solution of a 'ro%lem in an& field of human a tivit& whi h is new, involves an inventive ste' and is industriall& a''li a%le shall %e Patenta%le. It ma& %e, or ma& relate to, a 'rodu t, or 'ro ess, or an im'rovement of an& of the foregoing. 0/e . 2, #.A. 3o. 1.,a1 Section 22. Non-Patentable Inventions. - 4he following shall %e e+ luded from 'atent 'rote tion: 22.1. Dis overies, s ientifi theories and mathemati al methods! 22.2. / hemes, rules and methods of 'erforming mental a ts, 'la&ing games or doing %usiness, and 'rograms for om'uters! 22.". 5ethods for treatment of the human or animal %od& %& surger& or thera'& and diagnosti methods 'ra ti ed on the human or animal %od&. 4his 'rovision shall not a''l& to 'rodu ts and om'osition for use in an& of these methods! 22.). Plant varieties or animal %reeds or essentiall& %iologi al 'ro ess for the 'rodu tion of 'lants or animals. 4his 'rovision shall not a''l& to mi ro-organisms and non-%iologi al and mi ro%iologi al 'ro esses. Provisions under this su%se tion shall not 're lude $ongress to onsider the ena tment of a law 'roviding sui generis 'rote tion of 'lant varieties and animal %reeds and a s&stem of ommunit& intelle tual rights 'rote tion: 22.,. Aestheti reations! and

22... An&thing whi h is ontrar& to 'u%li order or moralit&. 0/e . 6, #.A. 3o. 1.,a1 Section 23. Novelty. . - An invention shall not %e onsidered new if it forms 'art of a 'rior art. 0/e . 7, #.A. 3o. 1.,a1 Section 24. Prior Art. - Prior art shall onsist of: 2).1. *ver&thing whi h has %een made availa%le to the 'u%li an&where in the world, %efore the filing date or the 'riorit& date of the a''li ation laiming the invention! and 2).2. 4he whole ontents of an a''li ation for a 'atent, utilit& model, or industrial design registration, 'u%lished in a ordan e with this A t, filed or effe tive in the Phili''ines, with a filing or 'riorit& date that is earlier than the filing or

'riorit& date of the a''li ation: Provided, 4hat the a''li ation whi h has validl& laimed the filing date of an earlier a''li ation under /e tion "1 of this A t, shall %e 'rior art with effe t as of the filing date of su h earlier a''li ation: Provided further, 4hat the a''li ant or the inventor identified in %oth a''li ations are not one and the same. 0/e . 7, #.A. 3o. 1.,a1 Section 25. Non-Prejudicial Disclosure. . - 2,.1. 4he dis losure of information ontained in the a''li ation during the twelve 0121 months 're eding the filing date or the 'riorit& date of the a''li ation shall not 're8udi e the a''li ant on the ground of la 9 of novelt& if su h dis losure was made %&: 0a1 4he inventor! 0%1 A 'atent offi e and the information was ontained 0a1 in another a''li ation filed %& the inventor and should not have %een dis losed %& the offi e, or 0%1 in an a''li ation filed without the 9nowledge or onsent of the inventor %& a third 'art& whi h o%tained the information dire tl& or indire tl& from the inventor! or 0 1 A third 'art& whi h o%tained the information dire tl& or indire tl& from the inventor. 2,.2. :or the 'ur'oses of /u%se tion 2,.1, "inventor" also means an& 'erson who, at the filing date of a''li ation, had the right to the 'atent. 0n1 Section 2 . Inventive te!. - An invention involves an inventive ste' if, having regard to 'rior art, it is not o%vious to a 'erson s9illed in the art at the time of the filing date or 'riorit& date of the a''li ation laiming the invention. 0n1 Section 2!. Industrial A!!licability. - An invention that an %e 'rodu ed and used in an& industr& shall %e industriall& a''li a%le. 0n1 CHAPTER III RIGHT TO A PATENT Section 2". "i#ht to a Patent. - 4he right to a 'atent %elongs to the inventor, his heirs, or assigns. ;hen two 021 or more 'ersons have 8ointl& made an invention, the right to a 'atent shall %elong to them 8ointl&. 0/e . 10, #.A. 3o. 1.,a1 Section 2#. $irst to $ile "ule. - If two 021 or more 'ersons have made the invention se'aratel& and inde'endentl& of ea h other, the right to the 'atent shall %elong to the 'erson who filed an a''li ation for su h invention, or where two or more a''li ations are filed for the same invention, to the a''li ant who has the earliest filing date or, the earliest 'riorit& date. 0"rd senten e, /e . 10, #.A. 3o. 1.,a.1 Section 30. Inventions %reated Pursuant to a %ommission. - "0.1. 4he 'erson who ommissions the wor9 shall own the 'atent, unless otherwise 'rovided in the ontra t. "0.2. In ase the em'lo&ee made the invention in the ourse of his em'lo&ment ontra t, the 'atent shall %elong to: 0a1 4he em'lo&ee, if the inventive a tivit& is not a 'art of his regular duties even if the em'lo&ee uses the time, fa ilities and materials of the em'lo&er. 0%1 4he em'lo&er, if the invention is the result of the 'erforman e of his regularl&-assigned duties, unless there is an agreement, e+'ress or im'lied, to the ontrar&. 0n1 Section 31. "i#ht of Priority. . - An a''li ation for 'atent filed %& an& 'erson who has 'reviousl& a''lied for the same invention in another ountr& whi h %& treat&, onvention, or law affords similar 'rivileges to :ili'ino iti<ens, shall %e onsidered as filed as of the date of filing the foreign a''li ation: Provided, 4hat: 0a1 the lo al a''li ation e+'ressl& laims 'riorit&! 0%1 it is filed within twelve 0121 months from the date the earliest foreign a''li ation was filed! and 0 1 a ertified o'& of the foreign a''li ation together with an *nglish translation is filed within si+ 0.1 months from the date of filing in the Phili''ines. 0/e . 1,, #.A. 3o. 1.,a1 CHAPTER IV PATENT APPLICATION

Section 32. The A!!lication. - "2.1. 4he 'atent a''li ation shall %e in :ili'ino or *nglish and shall ontain the following: 0a1 A re=uest for the grant of a 'atent! 0%1 A des ri'tion of the invention! 0 1 Drawings ne essar& for the understanding of the invention! 0d1 >ne or more laims! and 0e1 An a%stra t. "2.2. 3o 'atent ma& %e granted unless the a''li ation identifies the inventor. If the a''li ant is not the inventor, the >ffi e ma& re=uire him to su%mit said authorit&. 0/e . 1", #.A. 3o. 1.,a1 Section 33. A!!ointment of A#ent or "e!resentative. - An a''li ant who is not a resident of the Phili''ines must a''oint and maintain a resident agent or re'resentative in the Phili''ines u'on whom noti e or 'ro ess for 8udi ial or administrative 'ro edure relating to the a''li ation for 'atent or the 'atent ma& %e served. 0/e . 11, #.A. 3o. 1.,a1 Section 34. The "e&uest. - 4he re=uest shall ontain a 'etition for the grant of the 'atent, the name and other data of the a''li ant, the inventor and the agent and the title of the invention. 0n1 Section 35. Disclosure and Descri!tion of the Invention. - ",.1. Dis losure. - 4he a''li ation shall dis lose the invention in a manner suffi ientl& lear and om'lete for it to %e arried out %& a 'erson s9illed in the art. ;here the a''li ation on erns a mi ro%iologi al 'ro ess or the 'rodu t thereof and involves the use of a mi ro-organism whi h annot %e suffi ientl& dis losed in the a''li ation in su h a wa& as to ena%le the invention to %e arried out %& a 'erson s9illed in the art, and su h material is not availa%le to the 'u%li , the a''li ation shall %e su''lemented %& a de'osit of su h material with an international de'ositor& institution. ",.2. Des ri'tion. - 4he #egulations shall 'res ri%e the ontents of the des ri'tion and the order of 'resentation. 0/e . 1), #.A. 3o. 1.,a1 Section 3 . The %laims. - "..1. 4he a''li ation shall ontain one 011 or more laims whi h shall define the matter for whi h 'rote tion is sought. *a h laim shall %e lear and on ise, and shall %e su''orted %& the des ri'tion. "..2. 4he #egulations shall 'res ri%e the manner of the 'resentation of laims. 0n1 Section 3!. The Abstract. - 4he a%stra t shall onsist of a on ise summar& of the dis losure of the invention as ontained in the des ri'tion, laims and drawings in 'refera%l& not more than one hundred fift& 01,01 words. It must %e drafted in a wa& whi h allows the lear understanding of the te hni al 'ro%lem, the gist of the solution of that 'ro%lem through the invention, and the 'rin i'al use or uses of the invention. 4he a%stra t shall merel& serve for te hni al information. 0n1 Section 3". Unity of Invention. - "6.1. 4he a''li ation shall relate to one invention onl& or to a grou' of inventions forming a single general inventive on e't. "6.2. If several inde'endent inventions whi h do not form a single general inventive on e't are laimed in one a''li ation, the Dire tor ma& re=uire that the a''li ation %e restri ted to a single invention. A later a''li ation filed for an invention divided out shall %e onsidered as having %een filed on the same da& as the first a''li ation: Provided, 4hat the later a''li ation is filed within four 0)1 months after the re=uirement to divide %e omes final or within su h additional time, not e+ eeding four 0)1 months, as ma& %e granted: Provided further, 4hat ea h divisional a''li ation shall not go %e&ond the dis losure in the initial a''li ation. "6.". 4he fa t that a 'atent has %een granted on an a''li ation that did not om'l& with the re=uirement of unit& of invention shall not %e a ground to an el the 'atent. 0/e . 12, #.A. 3o. 1.,a1 Section 3#. Information %oncernin# %orres!ondin# $orei#n A!!lication for Patents . - 4he a''li ant shall, at the re=uest of the Dire tor, furnish him with the date and num%er of an& a''li ation for a 'atent filed %& him a%road, hereafter referred to

as the "foreign a''li ation," relating to the same or essentiall& the same invention as that laimed in the a''li ation filed with the >ffi e and other do uments relating to the foreign a''li ation. 0n1 CHAPTER V PROCE$%RE &OR GRANT O& PATENT Section 40. $ilin# Date "e&uirements. - )0.1. 4he filing date of a 'atent a''li ation shall %e the date of re ei't %& the >ffi e of at least the following elements: 0a1 An e+'ress or im'li it indi ation that a Phili''ine 'atent is sought! 0%1 Information identif&ing the a''li ant! and 0 1 Des ri'tion of the invention and one 011 or more laims in :ili'ino or *nglish. )0.2. If an& of these elements is not su%mitted within the 'eriod set %& the #egulations, the a''li ation shall %e onsidered withdrawn. 0n1 Section 41. Accordin# a $ilin# Date. - 4he >ffi e shall e+amine whether the 'atent a''li ation satisfies the re=uirements for the grant of date of filing as 'rovided in /e tion )0 hereof. If the date of filing annot %e a orded, the a''li ant shall %e given an o''ortunit& to orre t the defi ien ies in a ordan e with the im'lementing #egulations. If the a''li ation does not ontain all the elements indi ated in /e tion )0, the filing date should %e that date when all the elements are re eived. If the defi ien ies are not remedied within the 'res ri%ed time limit, the a''li ation shall %e onsidered withdrawn. 0n1 Section 42. $ormality '(amination. - )2.1. After the 'atent a''li ation has %een a orded a filing date and the re=uired fees have %een 'aid on time in a ordan e with the #egulations, the a''li ant shall om'l& with the formal re=uirements s'e ified %& /e tion "2 and the #egulations within the 'res ri%ed 'eriod, otherwise the a''li ation shall %e onsidered withdrawn. )2.2. 4he #egulations shall determine the 'ro edure for the re-e+amination and revival of an a''li ation as well as the a''eal to the Dire tor of Patents from an& final a tion %& the e+aminer. 0/e . 1., #.A. 3o. 1.,a1 Section 43. %lassification and earch. - An a''li ation that has om'lied with the formal re=uirements shall %e lassified and a sear h ondu ted to determine the 'rior art. 0n1 Section 44. Publication of Patent A!!lication. - )).1. 4he 'atent a''li ation shall %e 'u%lished in the IP> (a<ette together with a sear h do ument esta%lished %& or on %ehalf of the >ffi e iting an& do uments that refle t 'rior art, after the e+'iration of eighteen 0 161 months from the filing date or 'riorit& date. )).2. After 'u%li ation of a 'atent a''li ation, an& interested 'art& ma& ins'e t the a''li ation do uments filed with the >ffi e. )).". 4he Dire tor (eneral su%8e t to the a''roval of the /e retar& of 4rade and Industr&, ma& 'rohi%it or restri t the 'u%li ation of an a''li ation, if in his o'inion, to do so would %e 're8udi ial to the national se urit& and interests of the #e'u%li of the Phili''ines. 0n1 Section 45. %onfidentiality )efore Publication. - A 'atent a''li ation, whi h has not &et %een 'u%lished, and all related do uments, shall not %e made availa%le for ins'e tion without the onsent of the a''li ant. 0n1 Section 4 . "i#hts %onferred by a Patent A!!lication After Publication . - 4he a''li ant shall have all the rights of a 'atentee under /e tion 2. against an& 'erson who, without his authori<ation, e+er ised an& of the rights onferred under /e tion 21 of this A t in relation to the invention laimed in the 'u%lished 'atent a''li ation, as if a 'atent had %een granted for that invention: Provided, 4hat the said 'erson had: )..1. A tual 9nowledge that the invention that he was using was the su%8e t matter of a 'u%lished a''li ation! or

)..2. #e eived written noti e that the invention that he was using was the su%8e t matter of a 'u%lished a''li ation %eing identified in the said noti e %& its serial num%er: Provided, 4hat the a tion ma& not %e filed until after the grant of a 'atent on the 'u%lished a''li ation and within four 0)1 &ears from the ommission of the a ts om'lained of. 0n1 Section 4!. *bservation by Third Parties. - :ollowing the 'u%li ation of the 'atent a''li ation, an& 'erson ma& 'resent o%servations in writing on erning the 'atenta%ilit& of the invention. /u h o%servations shall %e ommuni ated to the a''li ant who ma& omment on them. 4he >ffi e shall a 9nowledge and 'ut su h o%servations and omment in the file of the a''li ation to whi h it relates. 0n1 Section 4". "e&uest for ubstantive '(amination. - )6.1. 4he a''li ation shall %e deemed withdrawn unless within si+ 0.1 months from the date of 'u%li ation under /e tion )1, a written re=uest to determine whether a 'atent a''li ation meets the re=uirements of /e tions 21 to 22 and /e tions "2 to "7 and the fees have %een 'aid on time. )6.2. ;ithdrawal of the re=uest for e+amination shall %e irrevo a%le and shall not authori<e the refund of an& fee. 0n1 Section 4#. Amendment of A!!lication. - An a''li ant ma& amend the 'atent a''li ation during e+amination: Provided, 4hat su h amendment shall not in lude new matter outside the s o'e of the dis losure ontained in the a''li ation as filed. 0n1 Section 50. +rant of Patent. - ,0.1. If the a''li ation meets the re=uirements of this A t, the >ffi e shall grant the 'atent: Provided, 4hat all the fees are 'aid on time. ,0.2. If the re=uired fees for grant and 'rinting are not 'aid in due time, the a''li ation shall %e deemed to %e withdrawn. ,0.". A 'atent shall ta9e effe t on the date of the 'u%li ation of the grant of the 'atent in the IP> (a<ette. 0/e . 16, #.A. 3o. 1.,a1 Section 51. "efusal of the A!!lication. - ,1.1. 4he final order of refusal of the e+aminer to grant the 'atent shall %e a''eala%le to the Dire tor in a ordan e with this A t. ,1.2. 4he #egulations shall 'rovide for the 'ro edure %& whi h an a''eal from the order of refusal from the Dire tor shall %e underta9en. 0n1 Section 52. Publication U!on +rant of Patent. - ,2.1. 4he grant of the 'atent together with other related information shall %e 'u%lished in the IP> (a<ette within the time 'res ri%ed %& the #egulations. ,2.2. An& interested 'art& ma& ins'e t the om'lete des ri'tion, laims, and drawings of the 'atent on file with the >ffi e. 0/e . 16, #.A. 3o. 1.,a1 Section 53. %ontents of Patent. - 4he 'atent shall %e issued in the name of the #e'u%li of the Phili''ines under the seal of the >ffi e and shall %e signed %& the Dire tor, and registered together with the des ri'tion, laims, and drawings, if an&, in %oo9s and re ords of the >ffi e. 0/e s. 17 and 20, #.A. 3o. 1.,a1 Section 54. Term of Patent. - 4he term of a 'atent shall %e twent& 0201 &ears from the filing date of the a''li ation. 0/e . 21, #.A. 3o. 1.,a1 Section 55. Annual $ees. - ,,.1. 4o maintain the 'atent a''li ation or 'atent, an annual fee shall %e 'aid u'on the e+'iration of four 0)1 &ears from the date the a''li ation was 'u%lished 'ursuant to /e tion )) hereof, and on ea h su%se=uent anniversar& of su h date. Pa&ment ma& %e made within three 0"1 months %efore the due date. 4he o%ligation to 'a& the annual fees shall terminate should the a''li ation %e withdrawn, refused, or an elled. ,,.2. If the annual fee is not 'aid, the 'atent a''li ation shall %e deemed withdrawn or the 'atent onsidered as la'sed from the da& following the e+'iration of the 'eriod within whi h the annual fees were due. A noti e that the a''li ation is deemed withdrawn or the la'se of a 'atent for non-'a&ment of an& annual fee shall %e 'u%lished in the IP> (a<ette and the la'se shall %e re orded in the #egister of the >ffi e. ,,.". A gra e 'eriod of si+ 0.1 months shall %e granted for the 'a&ment of the annual fee, u'on 'a&ment of the 'res ri%ed sur harge for dela&ed 'a&ment. 0/e . 22, #.A. 3o. 1.,a1

Section 5 . urrender of Patent. - ,..1. 4he owner of the 'atent, with the onsent of all 'ersons having grants or li enses or other right, title or interest in and to the 'atent and the invention overed there%&, whi h have %een re orded in the >ffi e, ma& surrender his 'atent or an& laim or laims forming 'art thereof to the >ffi e for an ellation. ,..2. A 'erson ma& give noti e to the >ffi e of his o''osition to the surrender of a 'atent under this se tion, and if he does so, the Bureau shall notif& the 'ro'rietor of the 'atent and determine the =uestion. ,..". If the >ffi e is satisfied that the 'atent ma& 'ro'erl& %e surrendered, he ma& a e't the offer and, as from the da& when noti e of his a e'tan e is 'u%lished in the IP> (a<ette, the 'atent shall ease to have effe t, %ut no a tion for infringement shall lie and no right om'ensation shall a rue for an& use of the 'atented invention %efore that da& for the servi es of the government. 0/e . 2), #.A. 3o. 1.,a1 Section 5!. %orrection of ,ista-es of the *ffice. - 4he Dire tor shall have the 'ower to orre t, without fee, an& mista9e in a 'atent in urred through the fault of the >ffi e when learl& dis losed in the re ords thereof, to ma9e the 'atent onform to the re ords. 0/e . 2,, #.A. 3o. 1.,1 Section 5". %orrection of ,ista-e in the A!!lication. - >n re=uest of an& interested 'erson and 'a&ment of the 'res ri%ed fee, the Dire tor is authori<ed to orre t an& mista9e in a 'atent of a formal and leri al nature, not in urred through the fault of the >ffi e. 0/e . 2., #.A. 3o. 1.,a1 Section 5#. %han#es in Patents. - ,7.1. 4he owner of a 'atent shall have the right to re=uest the Bureau to ma9e the hanges in the 'atent in order to: 0a1 ?imit the e+tent of the 'rote tion onferred %& it! 0%1 $orre t o%vious mista9es or to orre t leri al errors! and 0 1 $orre t mista9es or errors, other than those referred to in letter 0%1, made in good faith: Provided, 4hat where the hange would result in a %roadening of the e+tent of 'rote tion onferred %& the 'atent, no re=uest ma& %e made after the e+'iration of two 021 &ears from the grant of a 'atent and the hange shall not affe t the rights of an& third 'art& whi h has relied on the 'atent, as 'u%lished. ,7.2. 3o hange in the 'atent shall %e 'ermitted under this se tion, where the hange would result in the dis losure ontained in the 'atent going %e&ond the dis losure ontained in the a''li ation filed. ,7.". If, and to the e+tent to whi h the >ffi e hanges the 'atent a ording to this se tion, it shall 'u%lish the same. 0n1 Section 0. $orm and Publication of Amendment. - An amendment or orre tion of a 'atent shall %e a om'lished %& a ertifi ate of su h amendment or orre tion, authenti ated %& the seal of the >ffi e and signed %& the Dire tor, whi h ertifi ate shall %e atta hed to the 'atent. 3oti e of su h amendment or orre tion shall %e 'u%lished in the IP> (a<ette and o'ies of the 'atent 9e't or furnished %& the >ffi e shall in lude a o'& of the ertifi ate of amendment or orre tion. 0/e . 22, #.A. 3o. 1.,1 CHAPTER VI CANCELLATION O& PATENTS AN$ S%BSTIT%TION O& PATENTEE Section 1. %ancellation of Patents. - .1.1. An& interested 'erson ma&, u'on 'a&ment of the re=uired fee, 'etition to an el the 'atent or an& laim thereof, or 'arts of the laim, on an& of the following grounds: 0a1 4hat what is laimed as the invention is not new or Patenta%le! 0%1 4hat the 'atent does not dis lose the invention in a manner suffi ientl& lear and om'lete for it to %e arried out %& an& 'erson s9illed in the art! or 0 1 4hat the 'atent is ontrar& to 'u%li order or moralit&. .1.2. ;here the grounds for an ellation relate to some of the laims or 'arts of the laim, an ellation ma& %e effe ted to su h e+tent onl&. 0/e s. 26 and 27, #.A. 3o. 1.,a1

Section 2. "e&uirement of the Petition. - 4he 'etition for an ellation shall %e in writing, verified %& the 'etitioner or %& an& 'erson in his %ehalf who 9nows the fa ts, s'e if& the grounds u'on whi h it is %ased, in lude a statement of the fa ts to %e relied u'on, and filed with the >ffi e. $o'ies of 'rinted 'u%li ations or of 'atents of other ountries, and other su''orting do uments mentioned in the 'etition shall %e atta hed thereto, together with the translation thereof in *nglish, if not in the *nglish language. 0/e . "0, #.A. 3o. 1.,1 Section 3. Notice of .earin#. - @'on filing of a 'etition for an ellation, the Dire tor of ?egal Affairs shall forthwith serve noti e of the filing thereof u'on the 'atentee and all 'ersons having grants or li enses, or an& other right, title or interest in and to the 'atent and the invention overed there%&, as a''ears of re ord in the >ffi e, and of noti e of the date of hearing thereon on su h 'ersons and the 'etitioner. 3oti e of the filing of the 'etition shall %e 'u%lished in the IP> (a<ette. 0/e . "1, #.A. 3o. 1.,a1 Section 4. %ommittee of Three. - In ases involving highl& te hni al issues, on motion of an& 'art&, the Dire tor of ?egal Affairs ma& order that the 'etition %e heard and de ided %& a ommittee om'osed of the Dire tor of ?egal Affairs as hairman and two 021 mem%ers who have the e+'erien e or e+'ertise in the field of te hnolog& to whi h the 'atent sought to %e an elled relates. 4he de ision of the ommittee shall %e a''eala%le to the Dire tor (eneral. 0n1 Section 5. %ancellation of the Patent. - .,.1. If the $ommittee finds that a ase for an ellation has %een 'roved, it shall order the 'atent or an& s'e ified laim or laims thereof an elled. .,.2. If the $ommittee finds that, ta9ing into onsideration the amendment made %& the 'atentee during the an ellation 'ro eedings, the 'atent and the invention to whi h it relates meet the re=uirement of this A t, it ma& de ide to maintain the 'atent as amended: Provided, 4hat the fee for 'rinting of a new 'atent is 'aid within the time limit 'res ri%ed in the #egulations. .,.". If the fee for the 'rinting of a new 'atent is not 'aid in due time, the 'atent should %e revo9ed. .,.). If the 'atent is amended under /u%se tion .,.2 hereof, the Bureau shall, at the same time as it 'u%lishes the mention of the an ellation de ision, 'u%lish the a%stra t, re'resentative laims and drawings indi ating learl& what the amendments onsist of. 0n1 Section . 'ffect of %ancellation of Patent or %laim. - 4he rights onferred %& the 'atent or an& s'e ified laim or laims an elled shall terminate. 3oti e of the an ellation shall %e 'u%lished in the IP> (a<ette. @nless restrained %& the Dire tor (eneral, the de ision or order to an el %& Dire tor of ?egal Affairs shall %e immediatel& e+e utor& even 'ending a''eal. 0/e . "2, #.A. 3o. 1.,a1 CHAPTER VII RE'E$IES O& A PERSON WITH A RIGHT TO A PATENT Section !. Patent A!!lication by Persons Not .avin# the "i#ht to a Patent . . - .2.1. If a 'erson referred to in /e tion 27 other than the a''li ant, is de lared %& final ourt order or de ision as having the right to the 'atent, su h 'erson ma&, within three 0"1 months after the de ision has %e ome final: 0a1 Prose ute the a''li ation as his own a''li ation in 'la e of the a''li ant! 0%1 :ile a new 'atent a''li ation in res'e t of the same invention! 0 1 #e=uest that the a''li ation %e refused! or 0d1 /ee9 an ellation of the 'atent, if one has alread& %een issued. .2.2. 4he 'rovisions of /u%se tion "6.2 shall a''l& mutatis mutandis to a new a''li ation filed under /u%se tion .2. 10%1. 0n1 Section ". "emedies of the True and Actual Inventor. - If a 'erson, who was de'rived of the 'atent without his onsent or through fraud is de lared %& final ourt order or de ision to %e the true and a tual inventor, the ourt shall order for his su%stitution as 'atentee, or at the o'tion of the true inventor, an el the 'atent, and award a tual and other damages in his favor if warranted %& the ir umstan es. 0/e . "", #.A. 3o. 1.,a1

Section #. Publication of the %ourt *rder. - 4he ourt shall furnish the >ffi e a o'& of the order or de ision referred to in /e tions .2 and .6, whi h shall %e 'u%lished in the IP> (a<ette within three 0"1 months from the date su h order or de ision %e ame final and e+e utor&, and shall %e re orded in the register of the >ffi e. 0n1 Section !0. Time to $ile Action in %ourt. - 4he a tions indi ated in /e tions .2 and .6 shall %e filed within one 011 &ear from the date of 'u%li ation made in a ordan e with /e tions )) and ,1, res'e tivel&. 0n1 CHAPTER VIII RIGHTS O& PATENTEES AN$ IN&RINGE'ENT O& PATENTS Section !1. "i#hts %onferred by Patent. - 21.1. A 'atent shall onfer on its owner the following e+ lusive rights: 0a1 ;here the su%8e t matter of a 'atent is a 'rodu t, to restrain, 'rohi%it and 'revent an& unauthori<ed 'erson or entit& from ma9ing, using, offering for sale, selling or im'orting that 'rodu t! 0%1 ;here the su%8e t matter of a 'atent is a 'ro ess, to restrain, 'revent or 'rohi%it an& unauthori<ed 'erson or entit& from using the 'ro ess, and from manufa turing, dealing in, using, selling or offering for sale, or im'orting an& 'rodu t o%tained dire tl& or indire tl& from su h 'ro ess. 21.2. Patent owners shall also have the right to assign, or transfer %& su ession the 'atent, and to on lude li ensing ontra ts for the same. 0/e . "2, #.A. 3o. 1.,a1 Section !2. Limitations of Patent "i#hts. - 4he owner of a 'atent has no right to 'revent third 'arties from 'erforming, without his authori<ation, the a ts referred to in /e tion 21 hereof in the following ir umstan es: 22.1. @sing a 'atented 'rodu t whi h has %een 'ut on the mar9et in the Phili''ines %& the owner of the 'rodu t, or with his e+'ress onsent, insofar as su h use is 'erformed after that 'rodu t has %een so 'ut on the said mar9et! 22.2. ;here the a t is done 'rivatel& and on a non- ommer ial s ale or for a non- ommer ial 'ur'ose: Provided, 4hat it does not signifi antl& 're8udi e the e onomi interests of the owner of the 'atent! 22.". ;here the a t onsists of ma9ing or using e+ lusivel& for the 'ur'ose of e+'eriments that relate to the su%8e t matter of the 'atented invention! 22.). ;here the a t onsists of the 're'aration for individual ases, in a 'harma & or %& a medi al 'rofessional, of a medi ine in a ordan e with a medi al 'res ri'tion or a ts on erning the medi ine so 're'ared! 22.,. ;here the invention is used in an& shi', vessel, air raft, or land vehi le of an& other ountr& entering the territor& of the Phili''ines tem'oraril& or a identall&: Provided, 4hat su h invention is used e+ lusivel& for the needs of the shi', vessel, air raft, or land vehi le and not used for the manufa turing of an&thing to %e sold within the Phili''ines. 0/e s. "6 and "7, #.A. 3o. 1.,a1 Section !3. Prior User. - 2".1. 3otwithstanding /e tion 22 hereof, an& 'rior user, who, in good faith was using the invention or has underta9en serious 're'arations to use the invention in his enter'rise or %usiness, %efore the filing date or 'riorit& date of the a''li ation on whi h a 'atent is granted, shall have the right to ontinue the use thereof as envisaged in su h 're'arations within the territor& where the 'atent 'rodu es its effe t. 2".2. 4he right of the 'rior user ma& onl& %e transferred or assigned together with his enter'rise or %usiness, or with that 'art of his enter'rise or %usiness in whi h the use or 're'arations for use have %een made. 0/e . )0, #.A. 3o. 1.,a1 Section !4. Use of Invention by +overnment. - 2).1. A (overnment agen & or third 'erson authori<ed %& the (overnment ma& e+'loit the invention even without agreement of the 'atent owner where: 0a1 4he 'u%li interest, in 'arti ular, national se urit&, nutrition, health or the develo'ment of other se tors, as determined %& the a''ro'riate agen & of the government, so re=uires! or 0%1 A 8udi ial or administrative %od& has determined that the manner of e+'loitation, %& the owner of the 'atent or his li ensee is anti- om'etitive.

2).2. 4he use %& the (overnment, or third 'erson authori<ed %& the (overnment shall %e su%8e t, mutatis mutandis, to the onditions set forth in /e tions 7, to 72 and 100 to 102. 0/e . )1, #.A. 3o. 1.,a1 Section !5. '(tent of Protection and Inter!retation of %laims. - 2,.1. 4he e+tent of 'rote tion onferred %& the 'atent shall %e determined %& the laims, whi h are to %e inter'reted in the light of the des ri'tion and drawings. 2,.2. :or the 'ur'ose of determining the e+tent of 'rote tion onferred %& the 'atent, due a ount shall %e ta9en of elements whi h are e=uivalent to the elements e+'ressed in the laims, so that a laim shall %e onsidered to over not onl& all the elements as e+'ressed therein, %ut also e=uivalents. 0n1 Section ! . %ivil Action for Infrin#ement. - 2..1. 4he ma9ing, using, offering for sale, selling, or im'orting a 'atented 'rodu t or a 'rodu t o%tained dire tl& or indire tl& from a 'atented 'ro ess, or the use of a 'atented 'ro ess without the authori<ation of the 'atentee onstitutes 'atent infringement. 2..2. An& 'atentee, or an&one 'ossessing an& right, title or interest in and to the 'atented invention, whose rights have %een infringed, ma& %ring a ivil a tion %efore a ourt of om'etent 8urisdi tion, to re over from the infringer su h damages sustained there%&, 'lus attorne&As fees and other e+'enses of litigation, and to se ure an in8un tion for the 'rote tion of his rights. 2..". If the damages are inade=uate or annot %e readil& as ertained with reasona%le ertaint&, the ourt ma& award %& wa& of damages a sum e=uivalent to reasona%le ro&alt&. 2..). 4he ourt ma&, a ording to the ir umstan es of the ase, award damages in a sum a%ove the amount found as a tual damages sustained: Provided, 4hat the award does not e+ eed three 0"1 times the amount of su h a tual damages. 2..,. 4he ourt ma&, in its dis retion, order that the infringing goods, materials and im'lements 'redominantl& used in the infringement %e dis'osed of outside the hannels of ommer e or destro&ed, without om'ensation. 2.... An&one who a tivel& indu es the infringement of a 'atent or 'rovides the infringer with a om'onent of a 'atented 'rodu t or of a 'rodu t 'rodu ed %e ause of a 'atented 'ro ess 9nowing it to %e es'e iall& ado'ted for infringing the 'atented invention and not suita%le for su%stantial non-infringing use shall %e lia%le as a ontri%utor& infringer and shall %e 8ointl& and severall& lia%le with the infringer. 0/e . )2, #.A. 3o. 1.,a1 Section !!. Infrin#ement Action by a $orei#n National. - An& foreign national or 8uridi al entit& who meets the re=uirements of /e tion " and not engaged in %usiness in the Phili''ines, to whi h a 'atent has %een granted or assigned under this A t, ma& %ring an a tion for infringement of 'atent, whether or not it is li ensed to do %usiness in the Phili''ines under e+isting law. 0/e . )1-A, #.A. 3o. 1.,a1 Section !". Process Patents/ )urden of Proof . - If the su%8e t matter of a 'atent is a 'ro ess for o%taining a 'rodu t, an& identi al 'rodu t shall %e 'resumed to have %een o%tained through the use of the 'atented 'ro ess if the 'rodu t is new or there is su%stantial li9elihood that the identi al 'rodu t was made %& the 'ro ess and the owner of the 'atent has %een una%le des'ite reasona%le efforts, to determine the 'ro ess a tuall& used. In ordering the defendant to 'rove that the 'ro ess to o%tain the identi al 'rodu t is different from the 'atented 'ro ess, the ourt shall ado't measures to 'rote t, as far as 'ra ti a%le, his manufa turing and %usiness se rets. 0n1 Section !#. Limitation of Action for Dama#es. - 3o damages an %e re overed for a ts of infringement ommitted more than four 0)1 &ears %efore the institution of the a tion for infringement. 0/e . )", #.A. 3o. 1.,1 Section "0. Dama#es, "e&uirement of Notice. - Damages annot %e re overed for a ts of infringement ommitted %efore the infringer had 9nown, or had reasona%le grounds to 9now of the 'atent. It is 'resumed that the infringer had 9nown of the 'atent if on the 'atented 'rodu t, or on the ontainer or 'a 9age in whi h the arti le is su''lied to the 'u%li , or on the advertising material relating to the 'atented 'rodu t or 'ro ess, are 'la ed the words "Phili''ine Patent" with the num%er of the 'atent. 0/e . )), #.A. 3o. 1.,a1

Section "1. Defenses in Action for Infrin#ement. - In an a tion for infringement, the defendant, in addition to other defenses availa%le to him, ma& show the invalidit& of the 'atent, or an& laim thereof, on an& of the grounds on whi h a 'etition of an ellation an %e %rought under /e tion .1 hereof. 0/e . ),, #.A. 3o. 1.,1 Section "2. Patent $ound Invalid ,ay be %ancelled. - In an a tion for infringement, if the ourt shall find the 'atent or an& laim to %e invalid, it shall an el the same, and the Dire tor of ?egal Affairs u'on re ei't of the final 8udgment of an ellation %& the ourt, shall re ord that fa t in the register of the >ffi e and shall 'u%lish a noti e to that effe t in the IP> (a<ette. 0/e . )., #.A. 3o. 1.,a1 Section "3. Assessor in Infrin#ement Action. - 6".1. 4wo 021 or more assessors ma& %e a''ointed %& the ourt. 4he assessors shall %e 'ossessed of the ne essar& s ientifi and te hni al 9nowledge re=uired %& the su%8e t matter in litigation. *ither 'art& ma& hallenge the fitness of an& assessor 'ro'osed for a''ointment. 6".2. *a h assessor shall re eive a om'ensation in an amount to %e fi+ed %& the ourt and advan ed %& the om'laining 'art&, whi h shall %e awarded as 'art of his osts should he 'revail in the a tion. 0/e . )2, #.A. 3o. 1.,a1 Section "4. %riminal Action for "e!etition of Infrin#ement. - If infringement is re'eated %& the infringer or %& an&one in onnivan e with him after finalit& of the 8udgment of the ourt against the infringer, the offenders shall, without 're8udi e to the institution of a ivil a tion for damages, %e riminall& lia%le therefor and, u'on onvi tion, shall suffer im'risonment for the 'eriod of not less than si+ 0.1 months %ut not more than three 0"1 &ears andBor a fine of not less than >ne hundred thousand 'esos 0P100,0001 %ut not more than 4hree hundred thousand 'esos 0P"00,0001, at the dis retion of the ourt. 4he riminal a tion herein 'rovided shall 'res ri%e in three 0"1 &ears from date of the ommission of the rime. 0/e . )6, #.A. 3o. 1.,a1 CHAPTER I( VOL%NTARY LICENSING Section "5. 0oluntary License %ontract. - 4o en ourage the transfer and dissemination of te hnolog&, 'revent or ontrol 'ra ti es and onditions that ma& in 'arti ular ases onstitute an a%use of intelle tual 'ro'ert& rights having an adverse effe t on om'etition and trade, all te hnolog& transfer arrangements shall om'l& with the 'rovisions of this $ha'ter. 0n1 Section " . 1urisdiction to ettle Dis!utes on "oyalties. - 4he Dire tor of the Do umentation, Information and 4e hnolog& 4ransfer Bureau shall e+er ise =uasi-8udi ial 8urisdi tion in the settlement of dis'utes %etween 'arties to a te hnolog& transfer arrangement arising from te hnolog& transfer 'a&ments, in luding the fi+ing of a''ro'riate amount or rate of ro&alt&. 0n1 Section "!. Prohibited %lauses. - *+ e't in ases under /e tion 71, the following 'rovisions shall %e deemed 'rima fa ie to have an adverse effe t on om'etition and trade: 62.1. 4hose whi h im'ose u'on the li ensee the o%ligation to a =uire from a s'e ifi sour e a'ital goods, intermediate 'rodu ts, raw materials, and other te hnologies, or of 'ermanentl& em'lo&ing 'ersonnel indi ated %& the li ensor! 62.2. 4hose 'ursuant to whi h the li ensor reserves the right to fi+ the sale or resale 'ri es of the 'rodu ts manufa tured on the %asis of the li ense! 62.". 4hose that ontain restri tions regarding the volume and stru ture of 'rodu tion! 62.). 4hose that 'rohi%it the use of om'etitive te hnologies in a non-e+ lusive te hnolog& transfer agreement! 62.,. 4hose that esta%lish a full or 'artial 'ur hase o'tion in favor of the li ensor! 62... 4hose that o%ligate the li ensee to transfer for free to the li ensor the inventions or im'rovements that ma& %e o%tained through the use of the li ensed te hnolog&! 62.2. 4hose that re=uire 'a&ment of ro&alties to the owners of 'atents for 'atents whi h are not used!

62.6. 4hose that 'rohi%it the li ensee to e+'ort the li ensed 'rodu t unless 8ustified for the 'rote tion of the legitimate interest of the li ensor su h as e+'orts to ountries where e+ lusive li enses to manufa ture andBor distri%ute the li ensed 'rodu t0s1 have alread& %een granted! 62.7. 4hose whi h restri t the use of the te hnolog& su''lied after the e+'iration of the te hnolog& transfer arrangement, e+ e't in ases of earl& termination of the te hnolog& transfer arrangement due to reason0s1 attri%uta%le to the li ensee! 62.10. 4hose whi h re=uire 'a&ments for 'atents and other industrial 'ro'ert& rights after their e+'iration, termination arrangement! 62.11. 4hose whi h re=uire that the te hnolog& re i'ient shall not ontest the validit& of an& of the 'atents of the te hnolog& su''lier! 62.12. 4hose whi h restri t the resear h and develo'ment a tivities of the li ensee designed to a%sor% and ada't the transferred te hnolog& to lo al onditions or to initiate resear h and develo'ment 'rograms in onne tion with new 'rodu ts, 'ro esses or e=ui'ment! 62.1". 4hose whi h 'revent the li ensee from ada'ting the im'orted te hnolog& to lo al onditions, or introdu ing innovation to it, as long as it does not im'air the =ualit& standards 'res ri%ed %& the li ensor! 62.1). 4hose whi h e+em't the li ensor for lia%ilit& for non-fulfilment of his res'onsi%ilities under the te hnolog& transfer arrangement andBor lia%ilit& arising from third 'art& suits %rought a%out %& the use of the li ensed 'rodu t or the li ensed te hnolog&! and 62.1,. >ther lauses with e=uivalent effe ts. 0/e . ""-$ 021, #.A 1.,a1 Section "". ,andatory Provisions. - 4he following 'rovisions shall %e in luded in voluntar& li ense ontra ts: 66.1. 4hat the laws of the Phili''ines shall govern the inter'retation of the same and in the event of litigation, the venue shall %e the 'ro'er ourt in the 'la e where the li ensee has its 'rin i'al offi e! 66.2. $ontinued a ess to im'rovements in te hni=ues and 'ro esses related to the te hnolog& shall %e made availa%le during the 'eriod of the te hnolog& transfer arrangement! 66.". In the event the te hnolog& transfer arrangement shall 'rovide for ar%itration, the Pro edure of Ar%itration of the Ar%itration ?aw of the Phili''ines or the Ar%itration #ules of the @nited 3ations $ommission on International 4rade ?aw 0@3$I4#A?1 or the #ules of $on iliation and Ar%itration of the International $ham%er of $ommer e 0I$$1 shall a''l& and the venue of ar%itration shall %e the Phili''ines or an& neutral ountr&! and 66.). 4he Phili''ine ta+es on all 'a&ments relating to the te hnolog& transfer arrangement shall %e %orne %& the li ensor. 0n1 Section "#. "i#hts of Licensor. - In the a%sen e of an& 'rovision to the ontrar& in the te hnolog& transfer arrangement, the grant of a li ense shall not 'revent the li ensor from granting further li enses to third 'erson nor from e+'loiting the su%8e t matter of the te hnolog& transfer arrangement himself. 0/e . ""-B, #.A. 1.,a1 Section #0. "i#hts of Licensee. - 4he li ensee shall %e entitled to e+'loit the su%8e t matter of the te hnolog& transfer arrangement during the whole term of the te hnolog& transfer arrangement. 0/e . ""-$ 011, #.A. 1.,a1 Section #1. '(ce!tional %ases. - In e+ e'tional or meritorious ases where su%stantial %enefits will a rue to the e onom&, su h as high te hnolog& ontent, in rease in foreign e+ hange earnings, em'lo&ment generation, regional dis'ersal of industries andBor su%stitution with or use of lo al raw materials, or in the ase of Board of Investments, registered om'anies with 'ioneer status, e+em'tion from an& of the a%ove re=uirements ma& %e allowed %& the Do umentation, Information and 4e hnolog& 4ransfer Bureau after evaluation thereof on a ase %& ase %asis. 0n1 Section #2. Non-"e#istration with the Documentation, Information and Technolo#y Transfer )ureau . - 4e hnolog& transfer arrangements that onform with the 'rovisions of /e tions 6. and 62 need not %e registered with the Do umentation, Information and 4e hnolog& 4ransfer Bureau. 3on- onforman e with an& of the 'rovisions of /e tions 62 and 66,

however, shall automati all& render the te hnolog& transfer arrangement unenfor ea%le, unless said te hnolog& transfer arrangement is a''roved and registered with the Do umentation, Information and 4e hnolog& 4ransfer Bureau under the 'rovisions of /e tion 71 on e+ e'tional ases. 0n1 CHAPTER ( CO'P%LSORY LICENSING Section #3. +rounds for %om!ulsory Licensin#. - 4he Dire tor of ?egal Affairs ma& grant a li ense to e+'loit a 'atented invention, even without the agreement of the 'atent owner, in favor of an& 'erson who has shown his a'a%ilit& to e+'loit the invention, under an& of the following ir umstan es: 7".1. 3ational emergen & or other ir umstan es of e+treme urgen &! 7".2. ;here the 'u%li interest, in 'arti ular, national se urit&, nutrition, health or the develo'ment of other vital se tors of the national e onom& as determined %& the a''ro'riate agen & of the (overnment, so re=uires! or 7".". ;here a 8udi ial or administrative %od& has determined that the manner of e+'loitation %& the owner of the 'atent or his li ensee is anti- om'etitive! or 7".). In ase of 'u%li non- ommer ial use of the 'atent %& the 'atentee, without satisfa tor& reason! 7".,. If the 'atented invention is not %eing wor9ed in the Phili''ines on a ommer ial s ale, although a'a%le of %eing wor9ed, without satisfa tor& reason: Provided, 4hat the im'ortation of the 'atented arti le shall onstitute wor9ing or using the 'atent. 0/e s. "), ")-A, ")-B, #.A. 3o. 1.,a1 Section #4. Period for $ilin# a Petition for a %om!ulsory License . - 7).1. A om'ulsor& li ense ma& not %e a''lied for on the ground stated in /u%se tion 7"., %efore the e+'iration of a 'eriod of four 0)1 &ears from the date of filing of the a''li ation or three 0"1 &ears from the date of the 'atent whi hever 'eriod e+'ires last. 7).2. A om'ulsor& li ense whi h is a''lied for on an& of the grounds stated in /u%se tions 7".2, 7".", and 7".) and /e tion 72 ma& %e a''lied for at an& time after the grant of the 'atent. 0/e . ")011, #.A. 3o. 1.,1 Section #5. "e&uirement to *btain a License on "easonable %ommercial Terms . - 7,.1. 4he li ense will onl& %e granted after the 'etitioner has made efforts to o%tain authori<ation from the 'atent owner on reasona%le ommer ial terms and onditions %ut su h efforts have not %een su essful within a reasona%le 'eriod of time. 7,.2. 4he re=uirement under /u%se tion 7,.1 shall not a''l& in the following ases: 0a1 ;here the 'etition for om'ulsor& li ense see9s to remed& a 'ra ti e determined after 8udi ial or administrative 'ro ess to %e anti- om'etitive! 0%1 In situations of national emergen & or other ir umstan es of e+treme urgen &! 0 1 In ases of 'u%li non- ommer ial use. 7,.". In situations of national emergen & or other ir umstan es of e+treme urgen &, the right holder shall %e notified as soon as reasona%l& 'ra ti a%le. 7,.). In the ase of 'u%li non- ommer ial use, where the government or ontra tor, without ma9ing a 'atent sear h, 9nows or has demonstra%le grounds to 9now that a valid 'atent is or will %e used %& or for the government, the right holder shall %e informed 'rom'tl&. 0n1 Section # . %om!ulsory Licensin# of Patents Involvin# emi-%onductor Technolo#y . - In the ase of om'ulsor& li ensing of 'atents involving semi- ondu tor te hnolog&, the li ense ma& onl& %e granted in ase of 'u%li non- ommer ial use or to remed& a 'ra ti e determined after 8udi ial or administrative 'ro ess to %e anti- om'etitive. 0n1 Section #!. %om!ulsory License )ased on Interde!endence of Patents . - If the invention 'rote ted %& a 'atent, hereafter referred to as the "se ond 'atent," within the ountr& annot %e wor9ed without infringing another 'atent, hereafter referred to as the "first 'atent," granted on a 'rior a''li ation or %enefiting from an earlier 'riorit&, a om'ulsor& li ense

ma& %e granted to the owner of the se ond 'atent to the e+tent ne essar& for the wor9ing of his invention, su%8e t to the following onditions: 72.1. 4he invention laimed in the se ond 'atent involves an im'ortant te hni al advan e of onsidera%le e onomi signifi an e in relation to the first 'atent! 72.2. 4he owner of the first 'atent shall %e entitled to a ross-li ense on reasona%le terms to use the invention laimed in the se ond 'atent! 72.". 4he use authori<ed in res'e t of the first 'atent shall %e non-assigna%le e+ e't with the assignment of the se ond 'atent! and 72.). 4he terms and onditions of /e tions 7,, 7. and 76 to 100 of this A t. 0/e . ")-$, #.A. 3o. 1.,a1 Section #". $orm and %ontents of Petition. - 4he 'etition for om'ulsor& li ensing must %e in writing, verified %& the 'etitioner and a om'anied %& 'a&ment of the re=uired filing fee. It shall ontain the name and address of the 'etitioner as well as those of the res'ondents, the num%er and date of issue of the 'atent in onne tion with whi h om'ulsor& li ense is sought, the name of the 'atentee, the title of the invention, the statutor& grounds u'on whi h om'ulsor& li ense is sought, the ultimate fa ts onstituting the 'etitionerAs ause of a tion, and the relief 'ra&ed for. 0/e . ")-D, #.A. 3o. 1.,1 Section ##. Notice of .earin#. - 77.1. @'on filing of a 'etition, the Dire tor of ?egal Affairs shall forthwith serve noti e of the filing thereof u'on the 'atent owner and all 'ersons having grants or li enses, or an& other right, title or interest in and to the 'atent and invention overed there%& as a''ears of re ord in the >ffi e, and of noti e of the date of hearing thereon, on su h 'ersons and 'etitioner. 4he resident agent or re'resentative a''ointed in a ordan e with /e tion "" hereof, shall %e %ound to a e't servi e of noti e of the filing of the 'etition within the meaning of this /e tion. 77.2. In ever& ase, the noti e shall %e 'u%lished %& the said >ffi e in a news'a'er of general ir ulation, on e a wee9 for three 0"1 onse utive wee9s and on e in the IP> (a<ette at a''li antAs e+'ense. 0/e . ")-*, #.A. 3o. 1.,1 Section 100. Terms and %onditions of %om!ulsory License. - 4he %asi terms and onditions in luding the rate of ro&alties of a om'ulsor& li ense shall %e fi+ed %& the Dire tor of ?egal Affairs su%8e t to the following onditions: 100.1. 4he s o'e and duration of su h li ense shall %e limited to the 'ur'ose for whi h it was authori<ed! 100.2. 4he li ense shall %e non-e+ lusive! 100.". 4he li ense shall %e non-assigna%le, e+ e't with that 'art of the enter'rise or %usiness with whi h the invention is %eing e+'loited! 100.). @se of the su%8e t matter of the li ense shall %e devoted 'redominantl& for the su''l& of the Phili''ine mar9et: Provided, 4hat this limitation shall not a''l& where the grant of the li ense is %ased on the ground that the 'atenteeAs manner of e+'loiting the 'atent is determined %& 8udi ial or administrative 'ro ess, to %e anti- om'etitive. 100.,. 4he li ense ma& %e terminated u'on 'ro'er showing that ir umstan es whi h led to its grant have eased to e+ist and are unli9el& to re ur: Provided, 4hat ade=uate 'rote tion shall %e afforded to the legitimate interest of the li ensee! and 100... 4he 'atentee shall %e 'aid ade=uate remuneration ta9ing into a ount the e onomi value of the grant or authori<ation, e+ e't that in ases where the li ense was granted to remed& a 'ra ti e whi h was determined after 8udi ial or administrative 'ro ess, to %e anti- om'etitive, the need to orre t the anti- om'etitive 'ra ti e ma& %e ta9en into a ount in fi+ing the amount of remuneration. 0/e . ",-B, #.A. 3o. 1.,a1 Section 101. Amendment, %ancellation, urrender of %om!ulsory License . - 101.1. @'on the re=uest of the 'atentee or the li ensee, the Dire tor of ?egal Affairs ma& amend the de ision granting the om'ulsor& li ense, u'on 'ro'er showing of new fa ts or ir umstan es 8ustif&ing su h amendment. 101.2. @'on the re=uest of the 'atentee, the said Dire tor ma& an el the om'ulsor& li ense:

0a1 If the ground for the grant of the om'ulsor& li ense no longer e+ists and is unli9el& to re ur! 0%1 If the li ensee has neither %egun to su''l& the domesti mar9et nor made serious 're'aration therefor! 0 1 If the li ensee has not om'lied with the 'res ri%ed terms of the li ense! 101.". 4he li ensee ma& surrender the li ense %& a written de laration su%mitted to the >ffi e. 101.). 4he said Dire tor shall ause the amendment, surrender, or an ellation in the #egister, notif& the 'atentee, andBor the li ensee, and ause noti e thereof to %e 'u%lished in the IP> (a<ette. 0/e . ",-D, #.A. 3o. 1.,a1 Section 102. Licensee2s '(em!tion from Liability. - An& 'erson who wor9s a 'atented 'rodu t, su%stan e andBor 'ro ess under a li ense granted under this $ha'ter, shall %e free from an& lia%ilit& for infringement: Provided however, 4hat in the ase of voluntar& li ensing, no ollusion with the li ensor is 'roven. 4his is without 're8udi e to the right of the rightful owner of the 'atent to re over from the li ensor whatever he ma& have re eived as ro&alties under the li ense. 0/e . ",*, #.A. 3o. 1.,a1 CHAPTER (I ASSIGN'ENT AN$ TRANS'ISSION O& RIGHTS Section 103. Transmission of "i#hts. - 10".1. Patents or a''li ations for 'atents and invention to whi h the& relate, shall %e 'rote ted in the same wa& as the rights of other 'ro'ert& under the $ivil $ode. 10".2. Inventions and an& right, title or interest in and to 'atents and inventions overed there%&, ma& %e assigned or transmitted %& inheritan e or %e=uest or ma& %e the su%8e t of a li ense ontra t. 0/e . ,0, #.A. 3o. 1.,a1 Section 104. Assi#nment of Inventions. - An assignment ma& %e of the entire right, title or interest in and to the 'atent and the invention overed there%&, or of an undivided share of the entire 'atent and invention, in whi h event the 'arties %e ome 8oint owners thereof. An assignment ma& %e limited to a s'e ified territor&. 0/e . ,1, #.A. 3o. 1.,1 Section 105. $orm of Assi#nment. - 4he assignment must %e in writing, a 9nowledged %efore a notar& 'u%li or other offi er authori<ed to administer oath or 'erform notarial a ts, and ertified under the hand and offi ial seal of the notar& or su h other offi er. 0/e . ,2, #.A. 3o. 1.,1 Section 10 . "ecordin#. - 10..1. 4he >ffi e shall re ord assignments, li enses and other instruments relating to the transmission of an& right, title or interest in and to inventions, and 'atents or a''li ation for 'atents or inventions to whi h the& relate, whi h are 'resented in due form to the >ffi e for registration, in %oo9s and re ords 9e't for the 'ur'ose. 4he original do uments together with a signed du'li ate thereof shall %e filed, and the ontents thereof should %e 9e't onfidential. If the original is not availa%le, an authenti ated o'& thereof in du'li ate ma& %e filed. @'on re ording, the >ffi e shall retain the du'li ate, return the original or the authenti ated o'& to the 'art& who filed the same and noti e of the re ording shall %e 'u%lished in the IP> (a<ette. 10..2. /u h instruments shall %e void as against an& su%se=uent 'ur haser or mortgagee for valua%le onsideration and without noti e, unless, it is so re orded in the >ffi e, within three 0"1 months from the date of said instrument, or 'rior to the su%se=uent 'ur hase or mortgage. 0/e . ,", #.A. 3o. 1.,a1 Section 10!. "i#hts of 1oint *wners. - If two 021 or more 'ersons 8ointl& own a 'atent and the invention overed there%&, either %& the issuan e of the 'atent in their 8oint favor or %& reason of the assignment of an undivided share in the 'atent and invention or %& reason of the su ession in title to su h share, ea h of the 8oint owners shall %e entitled to 'ersonall& ma9e, use, sell, or im'ort the invention for his own 'rofit: Provided, however, 4hat neither of the 8oint owners shall %e entitled to grant li enses or to assign his right, title or interest or 'art thereof without the onsent of the other owner or owners, or without 'ro'ortionall& dividing the 'ro eeds with su h other owner or owners. 0/e . ,), #.A. 3o. 1.,1 CHAPTER (II REGISTRATION O& %TILITY 'O$ELS Section 10". A!!licability of Provisions "elatin# to Patents. - 106.1. /u%8e t to /e tion 107, the 'rovisions governing 'atents shall a''l&, mutatis mutandis, to the registration of utilit& models.

106.2. ;here the right to a 'atent onfli ts with the right to a utilit& model registration in the ase referred to in /e tion 27, the said 'rovision shall a''l& as if the word "'atent" were re'la ed %& the words "'atent or utilit& model registration". 0/e . ,,, #.A. 3o. 1.,a1 Section 10#. !ecial Provisions "elatin# to Utility ,odels. - 107.1. 0a1 An invention =ualifies for registration as a utilit& model if it is new and industriall& a''li a%le. 0%1 /e tion 21, "Patenta%le Inventions", shall a''l& e+ e't the referen e to inventive ste' as a ondition of 'rote tion. 107.2. /e tions )" to )7 shall not a''l& in the ase of a''li ations for registration of a utilit& model. 107.". A utilit& model registration shall e+'ire, without an& 'ossi%ilit& of renewal, at the end of the seventh &ear after the date of the filing of the a''li ation. 107.). In 'ro eedings under /e tions .1 to .), the utilit& model registration shall %e an eled on the following grounds: 0a1 4hat the laimed invention does not =ualif& for registration as a utilit& model and does not meet the re=uirements of registra%ilit&, in 'arti ular having regard to /u%se tion 107.1 and /e tions 22, 2", 2) and 22! 0%1 4hat the des ri'tion and the laims do not om'l& with the 'res ri%ed re=uirements! 0 1 4hat an& drawing whi h is ne essar& for the understanding of the invention has not %een furnished! 0d1 4hat the owner of the utilit& model registration is not the inventor or his su 3o. 1.,a1 essor in title. 0/e s. ,,, ,., and ,2, #.A.

Section 110. %onversion of Patent A!!lications or A!!lications for Utility ,odel "e#istration . - 110.1. At an& time %efore the grant or refusal of a 'atent, an a''li ant for a 'atent ma&, u'on 'a&ment of the 'res ri%ed fee, onvert his a''li ation into an a''li ation for registration of a utilit& model, whi h shall %e a orded the filing date of the initial a''li ation. An a''li ation ma& %e onverted onl& on e. 110.2. At an& time %efore the grant or refusal of a utilit& model registration, an a''li ant for a utilit& model registration ma&, u'on 'a&ment of the 'res ri%ed fee, onvert his a''li ation into a 'atent a''li ation, whi h shall %e a orded the filing date of the initial a''li ation. 0/e . ,6, #.A. 3o. 1.,a1 Section 111. Prohibition a#ainst $ilin# of Parallel A!!lications. - An a''li ant ma& not file two 021 a''li ations for the same su%8e t, one for utilit& model registration and the other for the grant of a 'atent whether simultaneousl& or onse utivel&. 0/e . ,7, #.A. 3o. 1.,a1 CHAPTER (III IN$%STRIAL $ESIGN Section 112. Definition of Industrial Desi#n. - An industrial design is an& om'osition of lines or olors or an& threedimensional form, whether or not asso iated-with lines or olors: Provided, 4hat su h om'osition or form gives a s'e ial a''earan e to and an serve as 'attern for an industrial 'rodu t or handi raft. 0/e . ,,, #.A. 3o. 1.,a1 Section 113. ubstantive %onditions for Protection. - 11".1. >nl& industrial designs that are new or original shall %enefit from 'rote tion under this A t. 11".2. Industrial designs di tated essentiall& %& te hni al or fun tional onsiderations to o%tain a te hni al result or those that are ontrar& to 'u%li order, health or morals shall not %e 'rote ted. 0n1 Section 114. %ontents of the A!!lication. - 11).1. *ver& a''li ation for registration of an industrial design shall ontain: 0a1 A re=uest for registration of the industrial design! 0%1 Information identif&ing the a''li ant! 0 1 An indi ation of the 9ind of arti le of manufa ture or handi raft to whi h the design shall %e a''lied!

0d1 A re'resentation of the arti le of manufa ture or handi raft %& wa& of drawings, 'hotogra'hs or other ade=uate gra'hi re'resentation of the design as a''lied to the arti le of manufa ture or handi raft whi h learl& and full& dis loses those features for whi h design 'rote tion is laimed! and 0e1 4he name and address of the reator, or where the a''li ant is not the reator, a statement indi ating the origin of the right to the industrial design registration. 11).2. 4he a''li ation ma& %e a om'anied %& a s'e imen of the arti le em%od&ing the industrial design and shall %e su%8e t to the 'a&ment of the 'res ri%ed fee.0n1 Section 115. everal Industrial Desi#ns in *ne A!!lication. - 4wo 021 or more industrial designs ma& %e the su%8e t of the same a''li ation: Provided, 4hat the& relate to the same su%- lass of the International $lassifi ation or to the same set or om'osition of arti les. 0n1 Section 11 . '(amination. - 11..1. 4he >ffi e shall a ord as the filing date the date of re ei't of the a''li ation ontaining indi ations allowing the identit& of the a''li ant to %e esta%lished and a re'resentation of the arti le em%od&ing the industrial design or a 'i torial re'resentation thereof. 11..2. If the a''li ation does not meet these re=uirements the filing date should %e that date when all the elements s'e ified in /e tion 10, are filed or the mista9es orre ted. >therwise if the re=uirements are not om'lied within the 'res ri%ed 'eriod, the a''li ation shall %e onsidered withdrawn. 11..". After the a''li ation has %een a orded a filing date and the re=uired fees 'aid on time, the a''li ant shall om'l& with the re=uirements of /e tion 11) within the 'res ri%ed 'eriod, otherwise the a''li ation shall %e onsidered withdrawn. 11..). 4he >ffi e shall e+amine whether the industrial design om'lies with re=uirements of /e tion 112 and /u%se tions 11".2 and 11".". 0n1 Section 11!. "e#istration. - 112.1. ;here the >ffi e finds that the onditions referred to in /e tion 11" are fulfilled, it shall order that registration %e effe ted in the industrial design register and ause the issuan e of an industrial design ertifi ate of registration, otherwise, it shall refuse the a''li ation. 112.2. 4he form and ontents of an industrial design ertifi ate shall %e esta%lished %& the #egulations: Provided, 4hat the name and address of the reator shall %e mentioned in ever& ase. 112.". #egistration shall %e 'u%lished in the form and within the 'eriod fi+ed %& the #egulations. 112.). 4he >ffi e shall re ord in the register an& hange in the identit& of the 'ro'rietor of the industrial design or his re'resentative, if 'roof thereof is furnished to it. A fee shall %e 'aid, with the re=uest to re ord the hange in the identit& of the 'ro'rietor. If the fee is not 'aid, the re=uest shall %e deemed not to have %een filed. In su h ase, the former 'ro'rietor and the former re'resentative shall remain su%8e t to the rights and o%ligations as 'rovided in this A t. 112.,. An&one ma& ins'e t the #egister and the files of registered industrial designs in luding the files of an ellation 'ro eedings. 0n1 Section 11". The Term of Industrial Desi#n "e#istration. - 116.1 4he registration of an industrial design shall %e for a 'eriod of five 0,1 &ears from the filing date of the a''li ation. 116.2. 4he registration of an industrial design ma& %e renewed for not more than two 021 onse utive 'eriods of five 0,1 &ears ea h, %& 'a&ing the renewal fee. 116.". 4he renewal fee shall %e 'aid within twelve 0121 months 're eding the e+'iration of the 'eriod of registration. Cowever, a gra e 'eriod of si+ 0.1 months shall %e granted for 'a&ment of the fees after su h e+'iration, u'on 'a&ment of a sur harge 116.). 4he #egulations shall fi+ the amount of renewal fee, the sur harge and other re=uirements regarding the re ording of renewals of registration.

Section 11#. A!!lication of *ther ections and %ha!ters. - 117.1. 4he following 'rovisions relating to 'atents shall a''l& mutatis mutandis to an industrial design registration: /e tion 21 - 3ovelt&: Prior art: Provided, 4hat the dis losure is ontained in 'rinted do uments or in an& tangi%le form!

/e tion 2)

/e tion 2, /e tion 22 /e tion 26 /e tion 27 /e tion "1

- 3on-'re8udi ial Dis losure! - Inventions $reated Pursuant to a $ommission! - #ight to a Patent! - :irst to :ile #ule! #ight of Priorit&: Provided, 4hat the a''li ation for industrial design shall %e filed - within si+ 0.1 months from the earliest filing date of the orres'onding foreign a''li ation! - A''ointment of Agent or #e'resentative! - #efusal of the A''li ation!

/e tion "" /e tion ,1 /e tions ,. to .0 $CAP4*# DII $CAP4*# DIII

- /urrender, $orre tion of and $hanges in Patent!

- #emedies of a Person with a #ight to Patent!

- #ights of Patentees and Infringement of Patents! and

$CAP4*# -I - Assignment and 4ransmission of #ights.

117.2. If the essential elements of an industrial design whi h is the su%8e t of an a''li ation have %een o%tained from the reation of another 'erson without his onsent, 'rote tion under this $ha'ter annot %e invo9ed against the in8ured 'art&. 0n1 Section 120. %ancellation of Desi#n "e#istration. - 120.1. At an& time during the term of the industrial design registration, an& 'erson u'on 'a&ment of the re=uired fee, ma& 'etition the Dire tor of ?egal Affairs to an el the industrial design on an& of the following grounds: 0a1 If the su%8e t matter of the industrial design is not registra%le within the terms of /e tions 112 and 11"! 0%1 If the su%8e t matter is not new! or

0 1 If the su%8e t matter of the industrial design e+tends %e&ond the ontent of the a''li ation as originall& filed. 120.2. ;here the grounds for an ellation relate to a 'art of the industrial design, an ellation ma& %e effe ted to su h e+tent onl&. 4he restri tion ma& %e effe ted in the form of an alteration of the effe ted features of the design. 0n1