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The rationale of the law is stated in Section 2. Declaration of State Policy which
says that “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 exclusive 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.”
What are the acts and corresponding punishments stipulated in this law?
PUNISHABLE ACTS :
Infringement. – Any person who shall, without the consent of the owner of the
registered mark:
Any person who shall employ deception or any other means contrary to good
faith by which he shall pass off the goods manufactured by him or in which he
deals, or his business, or services for those of the one having established
such goodwill, or who shall commit any acts calculated to produce said result,
shall be guilty of unfair competition, and shall be subject to an action therefor.
In particular, and without in any way limiting the scope of protection against
unfair competition, the following shall be deemed guilty of unfair competition:
(a) Any person, who is selling his goods and gives them the general appearance
of goods of another manufacturer or dealer, either as to the goods
themselves or in the wrapping of the packages in which they are contained, or
the devices or words thereon, or in any other feature of their appearance,
which would be likely to influence purchasers to believe that the goods
offered are those of a manufacturer or dealer, other than the actual
manufacturer or dealer, or who otherwise clothes the goods with such
appearance as shall deceive the public and defraud another of his legitimate
trade, or any subsequent vendor of such goods or any agent of any vendor
engaged in selling such goods with a like purpose;
(b) Any person who by any artifice, or device, or who employs any other means
calculated to induce the false belief that such person is offering the services
of another who has identified such services in the mind of the public; or
(c) Any person who shall make any false statement in the course of trade or who
shall commit any other act contrary to good faith of a nature calculated to
discredit the goods, business or services of another.
The remedies provided by Sections 156, 157 and 161 shall apply mutatis
mutandis. (Sec. 29, R.A. No. 166a)
False Designations of Origin; False Description or Representation. – 169.1.
Any person who, on or in connection with any goods or services, or any
container for goods, uses in commerce any word, term, name, symbol, or
device, or any combination thereof, or any false designation of origin, false
or misleading description of fact, or false or misleading representation of
fact, which:
Criminal Penalties. — 217.1. Any person infringing any right secured by provisions
of Part IV of this Act or aiding or abetting such infringement shall be guilty of a crime
punishable by:
Imprisonment of one (1) year to three (3) years plus a fine ranging from Fifty
thousand pesos (P50,000) to One hundred fifty thousand pesos (P150,000) for the
first offense.
Imprisonment of three (3) years and one (1) day to six (6) years plus a fine ranging
from One hundred fifty thousand pesos (P150,000) to Five hundred thousand pesos
(P500,000) for the second offense.
Imprisonment of six (6) years and one (1) day to nine (9) years plus a fine ranging
from five hundred thousand pesos (P500,000) to One million five hundred thousand
pesos (P1,500,000) for the third and subsequent offenses.
In all cases, subsidiary imprisonment in cases of insolvency.
217.2. In determining the number of years of imprisonment and the amount of fine,
the court shall consider the value of the infringing materials that the defendant has
produced or manufactured and the damage that the copyright owner has suffered by
reason of the infringement.
Any person who at the time when copyright subsists in a work has in his possession
an article which he knows, or ought to know, to be an infringing copy of the work for
the purpose of: (SECTION 217.3)
Selling, letting for hire, or by way of trade offering or exposing for sale, or hire, the
article;
Distributing the article for purpose of trade, or for any other purpose (FREE
DISTRIBUTION) to an extent that will prejudice the rights of the copyright owner in
the work; or
Trade exhibit of the article in public, shall be guilty of an offense and shall be liable
on conviction to imprisonment and fine as above mentioned. (Sec. 29, P.D. No. 49a)