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Ipophl Es2012 PDF
Ipophl Es2012 PDF
A. Introduction
IPOPHL was mandated to perform the following major functions: (a) examine
applications for grant of letters patent for inventions and register utility models and
industrial designs; (b) examine applications for the registration of marks, geographic
indication, integrated circuits; (c) register technology arrangements and settle disputes
involving technology transfer covered by the provisions of Republic Act No. 8293 on
Voluntary Licensing and develop/implement strategies to promote and facilitate
technology transfer; (d) promote the use of patent information as a tool for technology
development; (e) publish regularly in its own publication the patents, marks, utility
models and industrial designs; issued and approved, and the technology transfer
arrangements registered; (f) administratively adjudicate contested proceedings affecting
intellectual property rights; and (g) coordinate with other government agencies and the
private sector efforts to formulate and implement plans and policies to strengthen the
protection of intellectual property rights in the country.
B. Financial Highlights
IPOPHL stopped receiving funds sourced from the General Appropriations of the
Government since CY 2006. Funds for its operations were then sourced from its income
collections.
The IPOPHL derived its income from registration fees on patents for inventions,
trademarks, technology transfers, and the interest income on short-term investments
placed in government depository banks. As authorized under RA No. 8293, the IPOPHL
deposited the fees collected in a separate account or fund, from which disbursements for
its operations were sourced.
The IPOPHL also disbursed the total amount of P9,793,533.38 out of the P10
million funds received from the DTI Central Office in CY 2010 for the implementation of
the operations of the National Committee on Intellectual Property Rights (NCIPR).
C. Operational Highlights
For the year under audit, IPOPHL reported the following significant
accomplishments which were verified on a sampling basis shown on the next page.
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Increase
Performance Indicator CY 2012 CY 2011 %
(Decrease)
Patent
Received 2,994 3,196 (202)
Applications 1.73%
Granted 1,115 1,135 (20)
Trademarks
Received 19,453 18,611 842
Applications 2.76%
Registered 14,632 13,486 1,146
Utility Model
Received 715 674 41
Applications 0.41%
Granted 422 395 27
Industrial Design
Received 1,225 1,112 113
Applications 26.81%
Granted 1,061 665 396
IP Cases
Received 278 556 (278)
Filed/ Disposed 62.41%
Disposed 295 243 52
• IPOPHL now boasts of being the only IP Office in Asia with two Alternative
Dispute Resolution Mechanisms – Mediation and Arbitration;
• Leading the advocacy for IP policy and legislative agenda, another IPOPHL
achievement in 2012 is the Philippines’ accession to the Madrid Protocol. The
Madrid Protocol is an international filing system that facilitates the
registration of marks in several countries through a single application filed
with the IPOPHL.
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• Entered into an agreement with several agencies and organizations for the
effective enforcement of IP as a move to combat counterfeiting and piracy.
D. Scope of Audit
The audit covered the accounts and operations of the IPOPHL for CY 2012 and
aimed to (a) determine whether the financial statements present fairly the financial
position and results of operations; (b) ascertain the extent of compliance with pertinent
laws, rules and regulations; (c) identify agency improvement opportunities to enhance
operational processes/procedures; and (d) determine the extent of implementation of prior
year’s audit recommendations.
E. Auditor’s Report
The Auditor rendered a qualified opinion on the fairness of the presentation of the
financial statements of the IPOPHL due to the various deficiencies noted in audit as
follows:
2. The P566,146.43other supplies issued for CY 2012 were not recorded in the
books due to the non-submission of the Report of Supplies and Materials
Issued (RSMI) by the Supply Section to the Accounting Division as required
under Section 62 of the Manual on the NGAS, Volume II which resulted in
overstatement and understatement of the balance of Other Supplies Inventory
account and the total of Office Supplies Expenses account, respectively, by
that amount as of year-end.(Observation No. 3)
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of applicants who made such payments for subsequent recording in the
books.
• (a) Supply Officer prepare monthly the RSMI and submit to the
Accountant for recording; (b) Accountant, upon receipt and verification of
the RSMI, record promptly all issuances; and (c) Supply Officer and the
Accountant, on a regular periodic basis, (i) reconcile their books on
inventory accounts; and (ii) adjust their records accordingly.
• Supply Officer complete the physical inventory report of all PPE accounts
and render a report thereon, copy furnished the Accountant to support the
reported book balances of property.
1. The reliability of the statistics reported in the Annual Report on the number of
applications received and the income collected from trademarks and patents
for CY 2012 was doubtful due to discrepancy of the data in the reports
generated by Management Decision Support System (MDSS), e-NGAS, and
the Planning Section which were used in the preparation of the Annual
Report. (Observation No. 1)
4. The official website of the IPOPHL has no Transparency Seal and therefore
does not contain the required information needed to enhance transparency and
enforce accountability thus, violating the Transparency Seal Provision under
Section 93 of RA No. 10155, the General Appropriations Act for FY 2012.
(Observation No. 5)
5. IPOPHL did not allocate at least 1% of its budget for programs and projects
for Senior Citizens and Differently-Abled Persons contrary to Section 29 of
the General Provisions of RA No. 10155 hence, no activities for the said
Program were planned or undertaken during the year.(Observation No. 6)
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would address the concerns of the senior citizens and differently-abled
persons.
Of the ten audit recommendations contained in the 2011 Annual Audit Report,
two were fully implemented; seven were partially implemented while one was not
implemented at year-end the details of which are shown in Part III of this report. The
recommendations, which were not implemented and partially implemented, are reiterated
in Part II of this report since these affect the presentation of the assets in the financial
statements.
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