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Art XII, Section 6.

The use of property bears a social function, and all economic agents shall contribute to the
common good. Individuals and private groups, including corporations, cooperatives, and similar collective
organizations, shall have the right to own, establish, and operate economic enterprises, subject to the duty of the
State to promote distributive justice and to intervene when the common good so demands.

Art XII, Section 14. The sustained development of a reservoir of national talents consisting of Filipino scientists,
entrepreneurs, professionals, managers, high-level technical manpower and skilled workers and craftsmen in all
fields shall be promoted by the State. The State shall encourage appropriate technology and regulate its transfer for
the national benefit. The practice of all professions in the Philippines shall be limited to Filipino citizens, save in
cases prescribed by law.

ARTICLE XIV
EDUCATION, SCIENCE AND TECHNOLOGY, ARTS, CULTURE AND SPORTS

SCIENCE AND TECHNOLOGY

Section 10. Science and technology are essential for national development and progress. The State shall give
priority to research and development, invention, innovation, and their utilization; and to science and technology
education, training, and services. It shall support indigenous, appropriate, and self-reliant scientific and technological
capabilities, and their application to the country's productive systems and national life.

Section 11. The Congress may provide for incentives, including tax deductions, to encourage private participation in
programs of basic and applied scientific research. Scholarships, grants-in-aid, or other forms of incentives shall be
provided to deserving science students, researchers, scientists, inventors, technologists, and specially gifted
citizens.

Section 12. The State shall regulate the transfer and promote the adaptation of technology from all sources for the
national benefit. It shall encourage the widest participation of private groups, local governments, and community-
based organizations in the generation and utilization of science and technology.

Section 13. The State shall protect and secure the exclusive rights of scientists, inventors, artists, and other gifted
citizens to their intellectual property and creations, particularly when beneficial to the people, for such period as may
be provided by law.

ARTS AND CULTURE

Section 14. The State shall foster the preservation, enrichment, and dynamic evolution of a Filipino national culture
based on the principle of unity in diversity in a climate of free artistic and intellectual expression.

Section 15. Arts and letters shall enjoy the patronage of the State. The State shall conserve, promote, and
popularize the nation's historical and cultural heritage and resources, as well as artistic creations.

Section 16. All the country's artistic and historic wealth constitutes the cultural treasure of the nation and shall be
under the protection of the State which may regulate its disposition.

Section 17. The State shall recognize, respect, and protect the rights of indigenous cultural communities to
preserve and develop their cultures, traditions, and institutions. It shall consider these rights in the formulation of
national plans and policies.

Section 18.

1. The State shall ensure equal access to cultural opportunities through the educational system, public or
private cultural entities, scholarships, grants and other incentives, and community cultural centers, and other
public venues.
2. The State shall encourage and support researches and studies on the arts and culture.
SPORTS

Section 19.

1. The State shall promote physical education and encourage sports programs, league competitions, and
amateur sports, including training for international competitions, to foster self-discipline, teamwork, and
excellence for the development of a healthy and alert citizenry.
2. All educational institutions shall undertake regular sports activities throughout the country in cooperation with
athletic clubs and other sectors.

REPUBLIC ACT NO. 386

BOOK III
DIFFERENT MODES OF ACQUIRING OWNERSHIP

Preliminary Provision

Article 712. Ownership is acquired by occupation and by intellectual creation.

Ownership and other real rights over property are acquired and transmitted by law, by donation, by testate and
intestate succession, and in consequence of certain contracts, by tradition.

They may also be acquired by means of prescription. (609a)

TITLE II
Intellectual Creation

Article 721. By intellectual creation, the following persons acquire ownership:

(1) The author with regard to his literary, dramatic, historical, legal, philosophical, scientific or other work;

(2) The composer; as to his musical composition;

(3) The painter, sculptor, or other artist, with respect to the product of his art;

(4) The scientist or technologist or any other person with regard to his discovery or invention. (n)

Article 722. The author and the composer, mentioned in Nos. 1 and 2 of the preceding article, shall have the
ownership of their creations even before the publication of the same. Once their works are published, their rights are
governed by the Copyright laws.

The painter, sculptor or other artist shall have dominion over the product of his art even before it is copyrighted.

The scientist or technologist has the ownership of his discovery or invention even before it is patented. (n)

Article 723. Letters and other private communications in writing are owned by the person to whom they are
addressed and delivered, but they cannot be published or disseminated without the consent of the writer or his
heirs. However, the court may authorize their publication or dissemination if the public good or the interest of justice
so requires. (n)

Article 724. Special laws govern copyright and patent. (429a)

CHAPTER 3
Trade-marks and Trade-names

Article 520. A trade-mark or trade-name duly registered in the proper government bureau or office is owned by and
pertains to the person, corporation, or firm registering the same, subject to the provisions of special laws. (n)

Article 521. The goodwill of a business is property, and may be transferred together with the right to use the name
under which the business is conducted. (n)

Article 522. Trade-marks and trade-names are governed by special laws. (n)

379 SCRA 410 Mercantile Law Intellectual Property Law on Copyright Proper Subjects of Copyright
Elidad Kho is the owner of KEC Cosmetics Laboratory and she was also the holder of copyrights over Chin Chun
Su and its Oval Facial Cream Container/Case. She also bought the patent rights over the Chin Chun Su &
Device and Chin Chun Su for medicated cream from one Quintin Cheng, who was the assignee of Shun Yi Factory
a Taiwanese factory actually manufacturing Chin Chun Su products.
Kho filed a petition for injunction against Summerville General Merchandising and Company to enjoin the latter
from advertising and selling Chin Chun Su products, in similar containers as that of Kho, for this is misleading the
public and causing Kho to lose income; the petition is also to enjoin Summerville from infringing upon Khos
copyrights.
Summerville in their defense alleged that they are the exclusive and authorized importer, re-packer and
distributor of Chin Chun Su products; that Shun Yi even authorized Summerville to register its trade name Chin
Chun Su Medicated Cream with the Philippine Patent Office; that Quintin Cheng, from whom Kho acquired her
patent rights, had been terminated (her services) by Shun Yi.
ISSUE: Whether or not Kho has the exclusive right to use the trade name and its container.
HELD: No. Kho has no right to support her claim for the exclusive use of the subject trade name and its container.
The name and container of a beauty cream product are proper subjects of a trademark (not copyright like what
she registered for) inasmuch as the same falls squarely within its definition. In order to be entitled to exclusively
use the same in the sale of the beauty cream product, the user must sufficiently prove that she registered or used
it before anybody else did. Khos copyright and patent registration of the name and container would not
guarantee her the right to the exclusive use of the same for the reason that they are not appropriate subjects of
the said intellectual rights. Consequently, a preliminary injunction order cannot be issued for the reason that the
petitioner has not proven that she has a clear right over the said name and container to the exclusion of others,
not having proven that she has registered a trademark thereto or used the same before anyone did.

Elidad C. Kho vs. Court of Appeals, Summerville General


Merchandising Company and Ang Tiam Chay (G.R. No. 115758,
March 19, 2002, 379 SCRA 410)
FACTS:
Petitioners allegations are that they are doing business under the name and style of KEC Cosmetics Laboratory,
registered owner of Chin Chun Su and oval facial cream container/case, and alleges that she also has patent rights on
Chin Chun Su and Device and Chin Chun Su Medicated Cream after purchasing the same from Quintin Cheng, the
registered owner thereof in the supplemental register of the Philippine Patent Office and that Summerville advertised and
sold petitioners cream products under the brand name Chin Chun Su, in similar containers that petitioner uses, thereby
misleading the public, and resulting in the decline in the petitioners business sales and income; and, that the respondents
should be enjoined from allegedly infringing on the copyrights and patents of the petitioner.

The respondents, on the other hand, alleged as their defense that (1) Summerville is the exclusive and authorized
importer, re-packer and distributor of Chin Chun Su products manufactured by Shun Yi factory of Taiwan, (2) that the said
Taiwanese manufacturing company authorized Summerville to register its trade name Chin Chun Cu Medicated Cream
with the Philippine Patent office and Other appropriate governmental agencies; (3) that KEC Cosmetics Laboratory of the
petitioner obtained the copyrights through misrepresentation and falsification; and, (4) that the authority of Quintin Cheng,
assignee of the patent registration certificate, to distribute and market Chin Chun Su products in the Philippines had
already terminated by the said Taiwanese manufacturing company.

ISSUE:
Whether or not Kho has the sole right using the package of Chin Chun Su products

RULING:
Petitioner has no right to support her claim for the exclusive use of the subject trade name and its container. The name
and container of a beauty cream product are proper subjects of a trademark in as much as the same falls squarely within
its definition. In order to be entitled to exclusively use the same in the sale of the beauty cream product, the user
must sufficiently prove that she registered or used it before anybody else did. The petitioners copyright and
patent registration of the name and container would not guarantee her the right to exclusive use of the same for
the reason that they are not appropriate subjects of the said intellectual rights. Consequently, a preliminary
injunction order cannot be issued for the reason that the petitioner has not proven that she has a clear right over the said
name and container to the exclusion of others, not having proven that she has registered a trademark thereto or used the
same before anyone did.

NOTE:
Trademark, copyright, and patents are different intellectual property rights that cannot be interchanged with one
another. A trademark is any visible sign capable of distinguishing the goods (trademark) or services (service mark) of an
enterprise and shall include a stamped or marked container goods. In relation thereto, a trade name means the name or
designation identifying or distinguishing an enterprise. Meanwhile, the scope of copyright is confined to literary and
artistic works which are original intellectual creations in the literary and artistic domain protected from the moment of their
creation. Patentable inventions, on the other hand, refer to any technical solution of a problem in any field of human
activity which is new, involves an inventive step and is industrial applicable.