Acce 326 Sim Weeks 1-3

UNIVERSITY OF MINDANAO
College of Accounting Education

Program: BSA, BSIA, BSMA, BSAIS
Physically Distanced but Academically Engaged
Self-Instructional Manual (SIM) for

Self-Directed Learning (SDL)
Course/Subject: ACCE 326 – ADVANCED BUSINESS LAW AND

TAXATION
Name of Teacher: _____________________________
Name of Authors: ELLIS VICTOR B. COBARRUBIAS
ATTY. MARIEL ARIANE MONTON
THIS SIM/SDL MANUAL IS A DRAFT VERSION ONLY; NOT FOR

REPRODUCTION AND DISTRIBUTION OUTSIDE OF ITS INTENDED
USE. THIS IS INTENDED ONLY FOR THE USE OF THE STUDENTS
WHO ARE OFFICIALLY ENROLLED IN THE COURSE/SUBJECT.
EXPECT REVISIONS OF THE MANUAL.
THIS IS NOT FOR COMMERCIAL USE.
3F, Business & Engineering Building
Matina, Davao City
Phone No.: (082)305-0645 Local 137
TABLE OF CONTENTS
Page No.
Course Outline 3
Course Outline Policy 3
Course Information 8
Big Picture Weeks 1-3: Unit Learning Outcomes 9

Big Picture in Focus: Unit Learning Outcomes a 9
a. Metalanguage 9
b. Essential Knowledge 11
c. Self Help 17
d. Let’s Check 17
e. Let’s Analyze 19
f. In A Nutshell 20
g. Q&A List 21
h. Keywords Index 21
Big Picture in Focus: Unit Learning Outcomes b 22

a. Metalanguage 22
c. Self Help 28
d. Let’s Check 28
f. In A Nutshell 30
g. Q&A List 31
h. Keywords Index 32
Big Picture in Focus: Unit Learning Outcome c 32

a. Metalanguage 32
c. Self Help 34
d. Let’s Check 35
f. Q&A List 37
g. Keywords Index 37
Course Schedule 38
Online Course of Conduct 38
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Matina, Davao City
Phone No.: (082)305-0645 Local 137
Course Outline: ACCE 326 – Advanced Business Law and Taxation
Course Coordinators: Ellis Victor B. Cobarrubias

Atty. Mariel Ariane Monton
Email: ecobarrubias@umindanao.edu.ph
mmonton@umindanao.edu.ph
Student Consultation: Done through LMS or email
Mobile: 0998-8666701
Phone: (082) 3050646 loc. 137
Effectivity Date: May 25, 2020
Mode of Delivery: Blended (On-Line with face to face or virtual sessions)
Time Frame: 54 Hours
Student Workload: Expected Self-Directed Learning
Requisites: None
Credit: 3
Attendance Requirements: A minimum of 95% attendance is required at all
scheduled Virtual or face to face sessions.
Course Outline Policy
Areas of Concern Details

Contact and Non-contact Hours This 3-unit course self-instructional manual is designed
for blended learning mode of instructional delivery with
scheduled face to face or virtual sessions. The expected
number of hours will be 54 including the face to face or
virtual sessions. The face to face sessions shall include
the summative assessment tasks (exams) since this
course is crucial in the licensure examination for
accountants.
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Matina, Davao City
Phone No.: (082)305-0645 Local 137
Assessment Task Submission Submission of assessment tasks shall be on 3rd, 5th, 7th
and 9th week of the term. The assessment paper shall be
attached with a cover page indicating the title of the
assessment task (if the task is performance), the name
of the course coordinator, date of submission and name
of the student. The document should be emailed to the
course coordinator. It is also expected that you already
paid your tuition and other fees before the submission of
the assessment task.
If the assessment task is done in real time through the

features in the Blackboard Learning Management
System, the schedule shall be arranged ahead of time by
the course coordinator.
Since this course is included in the licensure

examination for accountants, you will be required to take
the Multiple-Choice Question exam inside the University.
This should be scheduled ahead of time by your course
coordinator. This is non-negotiable for all licensure-
based programs.
Turnitin Submission (if To ensure honesty and authenticity, all assessment

necessary) tasks are required to be submitted through Turnitin with
a maximum similarity index of 30% allowed. This means
that if your paper goes beyond 30%, the students will
either opt to redo her/his paper or explain in writing
addressed to the course coordinator the reasons for the
similarity. In addition, if the paper has reached more than
30% similarity index, the student may be called for a
disciplinary action in accordance with the University’s
OPM on Intellectual and Academic Honesty.
Please note that academic dishonesty such as cheating

and commissioning other students or people to complete
the task for you have severe punishments (reprimand,
warning, expulsion).
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Matina, Davao City
Phone No.: (082)305-0645 Local 137
Penalties for Late The score for an assessment item submitted after the
Assignments/Assessments designated time on the due date, without an approved
extension of time, will be reduced by 5% of the possible
maximum score for that assessment item for each day or
part day that the assessment item is late.
However, if the late submission of assessment paper has

a valid reason, a letter of explanation should be submitted
and approved by the course coordinator. If necessary,
you will also be required to present/attach evidences.
Return of Assignments/ Assessment tasks will be returned to you two (2) weeks
Assessments after the submission. This will be returned by email or via
Blackboard portal.
For group assessment tasks, the course coordinator will

require some or few of the students for online or virtual
sessions to ask clarificatory questions to validate the
originality of the assessment task submitted and to
ensure that all the group members are involved.
Assignment Resubmission You should request in writing addressed to the course
coordinator his/her intention to resubmit an assessment
task. The resubmission is premised on the student’s
failure to comply with the similarity index and other
reasonable grounds such as academic literacy standards
or other reasonable circumstances e.g. illness, accidents
financial constraints.
Re-marking of Assessment Papers You should request in writing addressed to the program
and Appeal coordinator your intention to appeal or contest the score
given to an assessment task. The letter should explicitly
explain the reasons/points to contest the grade. The
program coordinator shall communicate with the students
on the approval and disapproval of the request.
If disapproved by the course coordinator, you can

elevate your case to the program head or the dean with
the original letter of request. The final decision will come
from the dean of the college.
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Matina, Davao City
Phone No.: (082)305-0645 Local 137
Grading System All culled from BlackBoard sessions and traditional

contact
Course discussions/exercises – 30%
1st formative assessment – 10%
2nd formative assessment – 10%
3rd formative assessment – 10%
All culled from on-campus/onsite sessions (TBA):

Final exam – 40%
Submission of the final grades shall follow the usual

University system and procedures.
Preferred Referencing Style Harvard business format.
Student Communication You are required to create a umindanao email account

which is a requirement to access the BlackBoard portal.
Then, the course coordinator shall enroll the students to
have access to the materials and resources of the course.
All communication formats: chat, submission of
assessment tasks, requests etc. shall be through the
portal and other university recognized platforms.
You can also meet the course coordinator in person

through the scheduled face to face sessions to raise your
issues and concerns.
For students who have not created their student email,

please contact the course coordinator or program head.
Contact Details of the Dean Lord Eddie I. Aguilar, MBA, CPA

Email: aguilar_lordeddie@umindanao.edu.ph
Phone: 09496682557
Contact Details of the Assistant Mary Grace S. Sombilon, MSA, CPA
Dean and Program Assistant Dean
Heads Email:
sombilon_marygrace@umindanao.edu.ph
Phone: 082-3050647 local 102
Devzon U. Porras, MSA, CPA

Program Head – BSAT, BSAIS, BSIA
Email: dporras@umindanao.edu.ph
Phone: 082-3050647 local 102
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Matina, Davao City
Phone No.: (082)305-0645 Local 137
Jade D. Solaña, MBA, CPA

Program Head – BSA, BSMA
Email: jd_solana@umindanao.edu.ph
Phone: 082-3050647 local 102
Students with Special Needs Students with special needs shall communicate with the
course coordinator about the nature of his or her special
needs. Depending on the nature of the need, the course
coordinator with the approval of the program coordinator
may provide alternative assessment tasks or extension
of the deadline of submission of assessment tasks.
However, the alternative assessment tasks should still be
in the service of achieving the desired course learning
outcomes.
Online Tutorial Registration You are required to enroll in a specific tutorial time for this
course via the www.cte.edu.ph portal. Please note that
there is a deadline for enrollment to the tutorial.
Help Desk Contact Ronadora E. Deala
GSTC Head
Email: ronadora_deala@umindanao.edu.ph
Phone: 09212122846
Zerdszen P. Rañises
GSTC Facilitator
Email: gstcmain@umindanao.edu.ph
Phone: 09058924090 (TM); 09504665431 (TNT)
UM GSTC Main CAE

Facebook page:
https://www.facebook.com/UM-GSTC-Main-CAE-
111901303784349
Library Contact Brigida E. Bacani
LIC
Email: library@umindanao.edu.plh
Phone: 09513766681
UM Learning and Information Center-Davao City

Facebook page:
https://www.facebook.com/UM-Learning-and-
Information-Center-Davao-City-962331877193048
https://umindanao.wheelers.co/
For inquiries, you can email at

umlic.eresource@mail.com,
raphael_digal@umindanao.edu.ph or chat with us here
at http://library.umindanao.edu.ph
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Matina, Davao City
Phone No.: (082)305-0645 Local 137
Course Information – see/download course syllabus in the Black Board LMS
CC’s Voice: Hello future accountants! Welcome to this course ACCE 326: Advanced
Business Law and Taxation. I hope you will have fun learning them may
you internalize them because these topics are very relevant in our
profession. You are a few steps away in reaching your goal. Keep soaring
high.
CO This course is intended to give the students advanced knowledge in

business law and taxation. Specifically, students will get to understand the
laws that govern Philippine deposit, anti-money laundering, intellectual
property, data privacy and electronic commerce. Students will also gain
knowledge in preferential taxation and tariff and customs code.
Let us begin!
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Phone No.: (082)305-0645 Local 137
Big Picture
Week 1-3: Unit Learning Outcomes (ULO): At the end of the unit, you are expected to
a. Explain the organizational structure of the Intellectual Property Office, its bureaus and
legal requirements of patents, trademarks and legal affairs.
b. Describe the scope and functions of the National Privacy Commission and the legal
requirements of processing personal information, rights of data subject and security of
personal information.
c. Explain the legal recognition of electronic documents
Big Picture in Focus:

ULOa. Explain the organizational structure of the Intellectual Property
Office, its bureaus and legal requirements of patents, trademarks and
legal affairs.
Metalanguage
In this section, the most essential terms relevant to the study of the nature Intellectual Property
Laws (IPL) and to demonstrate ULOa will be operationally defined to establish a common frame
of refence as to how the texts work in IPL. You will encounter these terms as we go through the
study of IPL. Please refer to these definitions in case you will encounter difficulty in the in
understanding educational concepts.
1. Patentable Inventions. Refer to any technical solution of a problem in any field of human
activity, which is new, involves an inventive step and is industrially applicable. It may be,
or refer to, any product, process, or an improvement of any of the foregoing.
2. Trademark. any visible sign capable of distinguishing the goods (trademark) or services
(service mark) of an enterprise and shall include a stamped or marked container of goods.
3. Trade Name. The name or designation identifying or distinguishing an enterprise.
4. Copyright. Right granted by statute to the author or originator of literary, scholarly,
scientific, or artistic productions, including computer programs. A copyright gives him the
legal right to determine how the work is used and to obtain economic benefits from the
work. For example, the owner of a copyright for a book or a piece of software has the
exclusive rights to use, copy, distribute, and sell copies of the work, including later editions
or versions of the work. If another person improperly uses material covered by a copyright,
the copyright owner can obtain legal relief.
5. Geographic Indication. One which identifies a good as originating in the territory of a
TRIPS member, or a region or locality in that territory where a given quality, reputation or
other characteristic of a good is essentially attributable to its geographical origin
6. Industrial Design. 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
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Phone No.: (082)305-0645 Local 137
gives a special appearance to and can serve as pattern for an industrial product or
handicraft.
7. Layout Design (Topography). The three-dimensional disposition, however expressed,
of the elements, at least one of which is an active element, and of some or all the
interconnections of an integrated circuit, or such a three-dimensional disposition prepared
for an integrated circuit intended for manufacture.
8. Integrated Circuit. A product, in its final form, or an intermediate form, in which the
elements, at least one of which is an active element and some or all of the interconnections
are integrally formed and/or on a piece of material, and which is intended to perform an
electronic function.
9. Undisclosed Information. Information which is a secret in a sense that it is not, as a body
or in the precise configuration and assembly of components, generally known among or
readily accessible to persons within the circles that normally deal with the kind of
information in question; has a commercial value because it is secret; and has been subject
to reasonable steps under the circumstances, by the person lawfully in control of the
information, to keep it secret
10. Technology Transfer Arrangement. Refers to contract 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; the transfer of
intellectual property right, including licensing of computer software excepts computer
software developed for mass market.
11. Reciprocity Rule. 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.
12. Reverse Reciprocity of Foreign Laws. Any condition, restriction, limitation, diminution,
requirement, penalty or any similar burden imposed by the law of a foreign country on a
Philippine national seeking protection of intellectual property rights in that country, shall
reciprocally be enforceable upon nationals of said country, within Philippine jurisdiction.
13. National Treatment. It is a principle which states that each member of the WTO must
treat the nationals of every other member as favorably as its own with respect to
intellectual property,
14. Most-favored Nation Treatment. It requires that each member give other members‘
nationals the same treatment as its own, but that each member should not prefer any other
member‘s nationals or those of any non-member country, over the nationals of any
member.
15. Exhaustion of First Sale Doctrine. refers to doctrine that extinguish certain exclusive
rights of the holder of intellectual property with respect to a particular physical item
embodying the intellectual property after the item has first been sold under the holder‘s
authority.
16. Patentable Inventions. A patentable invention is 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.
17. Novelty. An invention shall not be considered new if it forms part of a prior art.
18. 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.
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Phone No.: (082)305-0645 Local 137
19. Industrial Applicability. An invention that can be produced and used in any industry shall
be industrially applicable.
20. Utility Model. It is any technical solution of a problem in any field of human activity which
is new and industrially applicable. Unlike an invention patent, a utility model need not be
inventive. The law merely requires that it be novel and industrially applicable.
21. Industrial design. It 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.
22. Patent Infringement. It is 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.
23. Contributory Infringer. One 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 and not
suitable for substantial non-infringing.
24. Doctrine of Patent Exhaustion. It espouses that the patentee who has already sold his
invention and has received all the royalty and consideration for the same will be deemed
to have released the invention from his monopoly.
25. Voluntary Licensing. Voluntary Licensing is the grant by the patent owner to a third
person of the right to exploit the patented invention.
26. Compulsory Licensing. Compulsory Licensing is the grant of the Director of Legal Affairs
of a license to exploit a patented invention, even without the agreement of the patent
owner, in favor of any person who has shown his capability to exploit the invention.
27. Marks. Any visible sign capable of distinguishing the goods (trademark) or services
28. Trade Name. The name or designation identifying or distinguishing an enterprise
29. Collective Marks. Any visible sign designated as such in the application for registration
and capable of distinguishing the origin or any other common characteristic, including the
quality of goods or services of different enterprises which use the sign under the control
of the registered owner of the collective mark
30. Doctrine of Fair Use. The fair use of copyrighted work for criticism, news reporting,
teaching (including multiple copies for classroom use), research and similar purposes is
not an infringement of copyright.
31. Infringement of Copyright and Related Rights. They are any violation of the rights
under the Intellectual Property Code and/or the applicable Intellectual Property Law,
including the act of any person who at the time when copyright subsists in a work has in
his possession an article which he known, or ought to know, to be an infringing copy of
the work f or the purpose of selling, letting for hire, or by way of trade offering or exposing
for sale, or hire, the article.
Essential Knowledge
INTELLECTUAL PROPERTY IN GENERAL
STATE POLICIES
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1. To 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.
2. To promote the diffusion of knowledge and information for the promotion of national
development and progress and the common good.
3. 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.
Intellectual Property Rights under the Intellectual Property Code

1. Copyright;
2. Related Rights of copyright;
3. Trademarks and Service Marks;
4. Geographic Indications;
5. Industrial Designs;
6. Patents;
7. Layout-Designs (Topographies) of Integrated Circuits;
8. Protection of Undisclosed Information
Differences between copyrights, trademarks and patent:
Patentable Inventions Trademark Copyright

Refer to any technical Any visible sign capable of It is a right granted by statute
solution of a problem in any distinguishing the goods to the author or originator of
field of human activity, which (trademark) or services literary, scholarly, scientific,
is new, involves an inventive (service mark) of an or artistic productions,
step and is industrially enterprise and shall include a including computer
applicable. stamped or marked container programs.
of goods.
Ex. Ex. Ex.
Electronic device (Original The McDonalds golden arch A Poem
Iphone)
WHAT IS THE PURPOSE OF THE TRIPS AGREEMENT?

The TRIPS Agreement is a minimum standards agreement, which allows Members to
provide more extensive protection of intellectual property if they so wish. Members are left free
to determine the appropriate method of implementing the provisions of the Agreement within their
own legal system and practice.
CONCEPT OF PATENT
STANDARDS OF INVENTIONS TO BE PATENTABLE:

A. Novelty - An invention shall not be considered new if it forms part of a prior art.
Prior art shall consist of:

i. Everything 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;
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ii. 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.
B. 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.
C. Industrial Applicability - An invention that can be produced and used in any industry
shall be industrially applicable.
Statutory Classes of Utility Models:
1. A useful machine;
2. An implement or tool;
3. A product or composition;
4. A method or process; or
5. An improvement of any of the foregoing.
Grounds for Cancellation of Utility Models:
1. That the claimed invention does not qualify for registration as a utility model and does
not meet the requirements of registrability;
2. That the description and the claims do not comply with the prescribed requirements;
3. That any drawing which is necessary for the understanding of the invention has not been
furnished;
4. That the owner of the utility model
Non-patentable Inventions:
1. Discoveries, scientific theories and mathematical methods;

2. Schemes, rules and methods of performing mental acts, playing games or doing
business, and programs for computers;
3. Methods for treatment of the human or animal body by surgery or therapy and diagnostic
methods practiced on the human or animal body
4. Plant varieties or animal breeds or essentially biological process for the production of
plants or animals.
5. Aesthetic creations
6. Anything which is contrary to public order or morality.
RULE ON OWNERSHIP OF A PATENT:
Who owns the Patent?
The right to patent belongs to the inventor, his heirs, or assigns. When two (2) or more persons
have jointly made an invention, the right to a patent shall belong to them jointly.
Exception: Inventions created pursuant to a commission.
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Ø The employer has the right to the patent if the invention is the result of the performance of
the employee‘s regularly assigned duties.
Ø In case of inventions created pursuant to a commission, the person who commissions the
work shall own the patent.
What is the First-to-file Rule?
If two (2) 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.
Grounds for Cancellation of Patent:
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.
Limitations on the Rights of Patentees:
a. Using a patented product which has been put on the market in the Philippines by the owner
of the product, or with his express consent;
b. Done privately and on a non-commercial scale or for a non- commercial purpose;
c. Where the act consists of making or using exclusively for experimental use of the invention
for scientific purposes or educational purpose;
d. In the case of drugs and medicines, where the act includes testing and using for the
development and submission of information and issuance of approvals by government
regulatory agencies required under any law; and
e. The act consists of the preparation for individual cases, in a pharmacy or by a medical
professional.
TEST OF PATENT INFRINGEMENT:
Ø Literal infringement - To determine whether the particular item falls within the literal
meaning of the patent claims, the court must juxtapose the claims of the patent and the
accused product within the overall context of the claims and specifications, to determine
whether there is exact identity of all material elements.
Ø Doctrine of equivalents - An infringement also occurs when a device appropriates a prior
invention by incorporating its innovative concept and, albeit with some modification and
change, performs substantially the same function in substantially the same way to achieve
substantially the same result.
KINDS OF LICENSING:
a. Voluntary Licensing – It is the grant by the patent owner to a third person of the right
to exploit the patented invention.
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b. Compulsory Licensing – It is the grant of the Director of Legal Affairs of a license to

exploit a patented invention, even without the agreement of the patent owner, in favor
of any person who has shown his capability to exploit the invention.
GROUNDS FOR COMPULSORY LICENSING:
a. National emergency or other circumstances of extreme urgency;

b. Where 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 Government, so requires;
c. Where a judicial or administrative body has determined that the manner of exploitation
by the owner of the patent or his licensee is anti-competitive;
d. In case of public non-commercial use of the patent by the patentee, without
satisfactory reason;
e. If the patented invention is not being worked in the Philippines on a commercial scale,
although capable of being worked, without satisfactory reason;
f. Where the demand for patented drugs and medicines is not being met to an adequate
extent; and
g. Manufacture and export of drugs and medicines to any country having insufficient or
no manufacturing capacity in the pharmaceutical sector to address public health
problems.
TRADEMARKS
TRADEMARK SERVICE MARK

Any visible sign which is adopted and used to Any visible sign capable of distinguishing the
identify the source of origin of goods, and services of an enterprise from the service of
which is capable of distinguishing them from other enterprises.
goods emanating from a competitor.
Acquisition of Ownership of Marks:
The rights to a mark shall be acquired through registration made validly in accordance with law.
A certificate of registration shall remain in force for 10 years and may be renewed for periods of
10 years at its expiration upon payment of the prescribed fee and upon filing of a request.
Acquisition of Ownership of Trade Name:
Notwithstanding any laws or regulations providing for any obligation to register trade names, such
names shall be protected, even prior to or without registration, against any unlawful act committed
by third parties. The ownership of a trade name is acquired through adoption and use.
TESTS TO DETERMINE CONFUSING SIMILARITY BETWEEN MARKS:
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1. Colorable Imitation – It denotes such a close or ingenious imitation as to be calculated

to deceive ordinary persons, or such a resemblance to the original as to deceive an
ordinary purchaser giving such attention as a purchaser usually gives, as to cause him to
purchase the one supposing it to be the other.
2. Dominancy Test - Infringement is determined by the test of ―dominancy rather than by
differences or variations the details of one trademark and of another.
3. Holistic Test - To determine whether a trademark has been infringed, we must consider
the mark as a whole and not as dissected. If the buyer is deceived, it is attributable to the
marks as a totality, not usually to any part of it.
“A well-known mark has the Right to be protected whether or not it is registered in the
Philippines.”
Trademark Infringement:
Any person who shall, without the consent of the owner of the registered mark:
1. Use in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered

mark or the same container or a dominant feature thereof in connection with the sale,
offering for sale, distribution, advertising of any goods or services which is likely to cause
confusion, or to cause mistake, or to deceive; or
2. Reproduce, counterfeit, copy or colorably imitate a registered mark or a dominant feature
thereof and apply such reproduction, counterfeit, copy or colorable imitation to labels,
signs, prints, packages to be used in commerce.
Unfair Competition - 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.
INFRINGEMENT OF TRADEMARK UNFAIR COMPETITION

Unauthorized use of a trademark Passing off of one‘s goods as those of another
Fraudulent intent is not necessary Fraudulent intent is essential
prior registration of the trademark is a registration is not necessary
prerequisite to the action
CONCEPT OF COPYRIGHT
Ø Principle of Automatic Protection: Copyright is vested from the very moment of

creation. The enjoyment and exercise of copyright, including moral rights, shall not be
the subject of any formality;
Ø Protection extends only to the expression of an idea, not the idea itself.
Ø The copyright is distinct from the property in the material object subject to it.
Ø Copyright is a statutory right, thus, the rights are limited to what the statute confers.
COPYRIGHTABLE WORKS EXAMPLES

Original Literary and Artistic Works Books, pamphlets, articles and other
writings, periodicals and newspapers,
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lectures, sermons, addresses,

dissertations.
Derivative Works Dramatizations, translations, adaptations,
abridgments, arrangements, and other
alterations of literary or artistic works;
RIGHTS OF COPYRIGHT OWNER
Ø Copyright or Economic Rights - Shall consist of the exclusive right to carry out,
authorize or prevent the acts of Reproduction of the work or substantial portion of the work.
Ø Moral Rights - The author of a work shall To require that the authorship of the works be
attributed to him
Ø Rights to Proceeds in Subsequent Transfers (Droit de Suite or Follow Up Rights) - In
every sale or lease of an original work of painting or sculpture or of the original manuscript
of a writer or composer, subsequent to the first disposition thereof by the author, the author
or his heirs shall have an inalienable right to participate in the gross proceeds of the sale
or lease to the extent of five percent (5%).
Ø Neighboring Rights – Includes performer’s rights.
LIMITATIONS ON COPYRIGHT
Doctrine of Fair Use
The fair use of copyrighted work for criticism, news reporting, teaching (including multiple copies
for classroom use), research and similar purposes is not an infringement of copyright. A privilege,
in persons other than the owner of the copyright, to use the copyrighted material in a reasonable
manner without his consent, notwithstanding the monopoly granted to the owner by the copyright.
It is meant to balance the monopolies enjoyed by the copyright owner with the interests of the
public and of society.
Self-Help: You can also refer to the sources below to help you
further understand the lesson:
*Intellectual Property Office of the Philippines Official Website:
https://www.ipophil.gov.ph/intellectual-property-code-implementing-rules-and-regulations/
*Official Gazette. (1997, June 6). Republic Act No. 8424: Republic Act No. 8293 An Act
Prescribing The Intellectual Property Code and Establishing The Intellectual Property Office,
Providing For Its Powers And Functions, And For Other Purposes, retrieved on January 12, 2021
from https://www.officialgazette.gov.ph/1997/06/06/republic-act-no-8293/
Let’s Check
Activity 1. Now that you know the most essential terms in the study of Intellectual Property Law
, let us try to check your understanding of these terms. In the space provided, write the term/s
being asked in the following statements:
_____________1. An invention shall not be considered new if it forms part of a prior art.
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_____________2. It is any technical solution of a problem in any field of human activity which is
new, involves an inventive step and is industrially applicable.
_____________3. It is 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.
_____________4. Voluntary Licensing is the grant by the patent owner to a third person of the
right to exploit the patented invention.
_____________5. Any visible sign capable of distinguishing the goods (trademark) or services
_____________6. The name or designation identifying or distinguishing an enterprise.
_____________7. Right granted by statute to the author or originator of literary, scholarly,

scientific, or artistic productions, including computer programs.
_____________8. The three-dimensional disposition, however expressed, of the elements, at

least one of which is an active element, and of some or all the interconnections of an integrated
circuit, or such a three-dimensional disposition prepared for an integrated circuit intended for
manufacture.
_____________9. 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.
_____________10. It is any technical solution of a problem in any field of human activity which
is new and industrially applicable.
_____________11. It is the grant of the Director of Legal Affairs of a license to exploit a patented
invention, even without the agreement of the patent owner, in favor of any person who has shown
his capability to exploit the invention.
_____________12. The fair use of copyrighted work for criticism, news reporting, teaching
(including multiple copies for classroom use), research and similar purposes is not an
infringement of copyright.
_____________13. It is a principle which states that each member of the WTO must treat the
nationals of every other member as favorably as its own with respect to intellectual property,
_____________14. An invention that can be produced and used in any industry shall be
industrially applicable.
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_____________15. It espouses that the patentee who has already sold his invention and has
received all the royalty and consideration for the same will be deemed to have released the
invention from his monopoly.
Let’s Analyze
Activity 1. Answer the following questions and explain thoroughly your answers in each given
situation based on your understanding of the Intellectual Property Law:
1. BR and CT are noted artists whose paintings are highly prized by collectors. Dr. DL
commissioned them to paint a mural at the main lobby of his new hospital for children.
Both agreed to collaborate on the project for a total fee of two million pesos to be equally
divided between them. It was also agreed that Dr. DL had to provide all the materials for
the painting and pay for the wages of technicians and laborers needed for the work on the
project.
Assume that the project is completed and both BR and CT are fully paid the amount of
P2M as artists' fee by DL. Under the law on intellectual property, who will own the mural?
Who will own the copyright in the mural? Why? Explain.
2. Cesar works in a car manufacturing company owned by Joab. Cesar is quite innovative
and loves to tinker with things. With the materials and parts of the car, he was able to
invent a gas-saving device that will enable cars to consume less gas. Francis, a co-worker
saw how Cesar created the device and likewise came up with a similar gadget, also using
scrap materials and spare parts of the company. Thereafter, Francis an application for
registration of his device with the Bureau of Patents. 18 months later, Cesar filed his
application for the registration of the device with the Bureau of Patents
1. Is the gas-saving device patentable?

2. Assuming that it is patentable, who is entitled to the patent? What if any is the remedy
of the losing party.
3. Supposing Joab got wind of the inventions of his employees and also laid a claim to
the patents. Asserting that Cesar and Francis where using materials and company
time in making the devices will his claim prevail over those of his employees?
3. Supposing Albert Einstein were alive today and he filed with the Intellectual Property Office
an application for patent of his theory of relativity expressed in the formula E=mc2. The
IPO disapproved Einstein application on the ground that his theory if relativity is not
patentable. Is the IPO action correct?
4. While vacationing in Boracay, Valentino surreptitiously took photographs of his girlfriend

Monaliza in her skimpy bikini. Two weeks later, her photographs appeared in the Internet
and in a national celebrity magazine. Monaliza found out that Valentino had sold the
photographs to the magazine, adding insult to injury, uploaded them to his personal blog
on the Internet. Monaliza filed a complaint against Valentino damages based on, among
other grounds, violation of her intellectual property rights. Does she have any cause of
action?
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5. Valentino’s friend Francesco stole the photographs and duplicated them and sold them to
a magazine publication. Valentino sued Francisco for infringement and damages. Does
Valentino have any cause of action? Explain.
In a Nutshell
Activity 1. After learning the principles and concepts of Intellectual Property Law, kindly provide
your conclusion in no more than 100 words for each of these subtopics. Do not copy your
statements from other resources. Use your own words based on what you have understood in
the topics.
A. Copyright Infringement
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
B. Concept of Trademarks
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
C. Patentable Inventions
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
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______________________________________________________________________________
______________________________________________________________________________
Q&A List
Do you have any question for clarification?
Questions/Issues Answers
1.
2.
3.
4.
5.
Keywords Index
This section lists down the keywords that will help you recall the discussions.
Patentable Inventions Trademark Trade Name Copyright

Geographic Indication Industrial Design Layout Design Integrated Circuit
Undisclosed Technology Reciprocity Reverse Reciprocity
Information Transfer Rule
Arrangement
National Treatment Most-favored Exhaustion of Patentable Inventions
Nation Treatment First Sale
Novelty Inventive Step Industrial Utility Model
Applicability
Industrial design Patent Contributory Doctrine of Patent
Infringement Infringer Exhaustion
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Big Picture in Focus: ULOb. Describe the scope and functions of the
National Privacy Commission and the legal requirements of
processing personal information, rights of data subject and security
of personal information.
Metalanguage
The most essential terms below are operationally defined for you to have a better understanding
of this section in the course.
1. Right to Privacy. The right to be let alone - the most comprehensive of rights and the
right most valued by civilized men.
2. Right to Information Privacy. The individual’s ability to control the flow of information
concerning or describing him, which however must be overbalanced by legitimate public
concerns. To deprive an individual of his power to control or determine whom to share
information of his personal details would deny him of his right to his own personhood.
3. National Privacy Commission. The Regulatory Body task “to administer and implement
the provisions of the Data Privacy Act and to monitor and ensure compliance of the country
with international standards set for data protection.
4. Extraterritorial Application. The Data Privacy Act applies to an act done or practice
engaged in and outside of the Philippines.
5. Personal Information. Refers to any information whether recorded in a material form or
not, from which the identity of an individual is apparent or can be reasonably and directly
ascertained by the entity holding the information, or when put together with other
information would directly and certainly identify an individual.
6. Privilege Information. Refers to any and all forms of data which under the Rules of Court
and other pertinent laws constitute privileged communication.
7. Personal Information Controller (PIC). Refers to a person or organization who controls
the collection, holding, processing or use of personal information, including a person or
organization who instructs another person or organization to collect, hold, process, use,
transfer or disclose personal information on his or her behalf.
8. Personal Information Processor (PIP). Refers to any natural or juridical person qualified
to act as such under this Act to whom a personal information controller may outsource the
processing of personal data pertaining to a data subject.
9. Principle of Accountability. Each personal information controller is responsible for
personal information under its control or custody, including information that have been
transferred to a third party for processing, whether domestically or internationally, subject
to cross-border arrangement and cooperation.
10. Data Subject. Refers to an individual whose personal information is processed.
11. Right to Rectification or Correction. Dispute the inaccuracy or error in the personal
information and have the personal information controller correct it immediately and
accordingly, unless the request is vexatious or otherwise unreasonable.
12. Right to Erasure or Blocking. Suspend, withdraw or order the blocking, removal or
destruction of his or her personal information from the personal information controller’s
filing system upon discovery and substantial proof that the personal information are
incomplete, outdated, false, unlawfully obtained, used for unauthorized purposes or are
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no longer necessary for the purposes for which they were collected. In this case, the
personal information controller may notify third parties who have previously received such
processed personal information;
Essential Knowledge
CONCEPT AND NATURE OF DATA PRIVACY ACT
State Policy on Data Privacy:

➢ “It is the policy of the State to protect the fundamental human right of privacy, of
communication while ensuring the free flow of information to promote innovation and growth.”
Rights covered by the Data Privacy Act:
RIGHT TO PRIVACY RIGHT TO INFORMATION PRIVACY

The right to be let alone - the most The individual’s ability to control the flow of
comprehensive of rights and the right most information concerning or describing him,
valued by civilized men. which however must be overbalanced by
legitimate public concerns.
The Extraterritoriality Application:
The Data Privacy Act applies to an act done or practice engaged in and outside of the Philippines
by an entity if:
(a) The act, practice or processing relates to personal information about a

Philippine citizen or a resident;
(b) The entity has a link with the Philippines, and the entity is processing personal
information in the Philippines or even if the processing is outside the Philippines
as long as it is about Philippine citizens or residents such as, but not limited to,
the following:
(1) A contract is entered in the Philippines;
(2) A juridical entity unincorporated in the Philippines but has central

management and control in the country; and
(3) An entity that has a branch, agency, office or subsidiary in the Philippines and
the parent or affiliate of the Philippine entity has access to personal information;
and
(c) The entity has other links in the Philippines such as, but not limited to:
(1) The entity carries on business in the Philippines; and
(2) The personal information was collected or held by an entity in the Philippines.
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Personal vs. Sensitive Personal Information
PERSONAL INFORMATION SENSITIVE PERSONAL INFORMATION

Refers to any information whether Refers to personal information:
recorded in a material form or not, from
which the identity of an individual is (1) About an individual’s race, ethnic
apparent or can be reasonably and origin, marital status, age, color, and
directly ascertained by the entity holding religious, philosophical or political
the information, or when put together affiliations;
with other information would directly and
certainly identify an individual. (2) About an individual’s health, education,
genetic or sexual life of a person, or to any
proceeding for any offense committed or
alleged to have been committed by such
person, the disposal of such proceedings,
or the sentence of any court in such
proceedings;
(3) Issued by government agencies

peculiar to an individual which includes,
but not limited to, social security numbers,
previous or current health records,
licenses or its denials, suspension or
revocation, and tax returns; and
(4) Specifically established by an executive

order or an act of Congress to be kept
classified.
Example: Example:
• Name • Date of Birth

• Home Address • Marital Status
• Business Address • Color, Race or Ethnic Origin
• Email Address • Religion (Religious beliefs or
• Telephone Number – Work affiliations)
• Telephone Number – Home • Education
• Photo
• Biometrics
• Political Association
• Philosophical Beliefs/Orientation
• Health
• Sexual life/preference/practice
• Offence committed or alleged to
have been committed, the disposal
of such proceedings, or the
sentence of any court in such
proceedings
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• Issued by government agencies

peculiar to an individual
• Unique identifiers
• Previous or current health records
• Licenses or its denials, suspension
or revocation • Tax returns
Privilege Information - Refers to any and all forms of data which under the Rules of Court and
other pertinent laws constitute privileged communication.
Scope of the Data Privacy Act - applies to the processing of all types of personal information
and to any natural and juridical person involved in personal information processing including those
personal information controllers and processors who, although not found or established in the
Philippines, use equipment that are located in the Philippines, or those who maintain an office,
branch or agency in the Philippines.
Personal Information Controller (PIC) versus Personal Information Processor (PIP)
PERSONAL INFORMATION PERSONAL INFORMATION

CONTROLLER (PIC) PROCESSOR (PIP)
Refers to a person or organization who Refers to any natural or juridical
controls the collection, holding, person qualified to act as such under this
processing or use of personal information, Act to whom a personal information
including a person or organization who controller may outsource the
instructs another person or organization processing of personal data pertaining to
to collect, hold, process, use, transfer or a data subject.
disclose personal information on his or
her behalf.
Examples of PICs processing personal Examples of PIPs Mail Service Providers,
data needed for their day to day activities Outsource Companies for purposes as
- Mercury Drugs through their Suki Card, needed by the Principal Company, IT
SM through SM Advantage Card, Jollibee Service Provider etc.
Group through Happy Plus Card, All
Banks, All Insurance Companies, Travel
Agencies, Hospitals, and All Government
entities.
Processing Exempt from the Coverage of the Data Privacy Act
This Act does not apply to the following:
(a) Information about any individual who is or was an officer or employee of a

government institution that relates to the position or functions of the individual,
including:
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(1) The fact that the individual is or was an officer or employee of the
government institution;
(2) The title, business address and office telephone number of the individual;
(3) The classification, salary range and responsibilities of the position held by
the individual; and
(4) The name of the individual on a document prepared by the individual in the
course of employment with the government;
(b) Information about an individual who is or was performing service under contract for
a government institution that relates to the services performed, including the terms of the
contract, and the name of the individual given in the course of the performance of those
services;
(c) Information relating to any discretionary benefit of a financial nature such as the
granting of a license or permit given by the government to an individual, including the
name of the individual and the exact nature of the benefit;
(d) Personal information processed for journalistic, artistic, literary or research

purposes;
(e) Information necessary in order to carry out the functions of public authority which
includes the processing of personal data for the performance by the independent, central
monetary authority and law enforcement and regulatory agencies of their constitutionally
and statutorily mandated functions.
(f) Information necessary for banks and other financial institutions under the jurisdiction
of the independent, central monetary authority or Bangko Sentral ng Pilipinas to comply
with Republic Act No. 9510, and Republic Act No. 9160, as amended, otherwise known
as the Anti-Money Laundering Act and other applicable laws; and
(g) Personal information originally collected from residents of foreign jurisdictions in

accordance with the laws of those foreign jurisdictions, including any applicable data
privacy laws, which is being processed in the Philippines.
Processing of Personal Information shall be allowed subject to the following principles:
1. Transparency - The data subject must be aware of the nature, purpose and extent
of the processing of his or her personal data. Including the risks and safeguards
involved the identity of personal information controller, his or her rights as a data
subject, and how these can be exercised. Any information and communication relating
to the processing of personal data should be easy to access and understand, using
2. Legitimate Purpose - Processing of information shall be compatible with a declared
and specified purpose which must not be contrary to law, morals or public policy.
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3. Proportionality - The processing of information shall be adequate, relevant, suitable,

necessary and not excessive in relation to a declared and specified purpose. Personal
data shall be processed only if the purpose of the processing could not reasonably be
fulfilled by other means.
Rights of Data Subject
The data subject is entitled to the following:
1. Right to Information - Be informed whether personal information pertaining to him

or her shall be, are being or have been processed;
2. Right to Access - Reasonable access to, upon demand, the following:
• Contents of his or her personal information that were processed;

• Sources from which personal information were obtained;
• Names and addresses of recipients of the personal information;
• Manner by which such data were processed;
• Reasons for the disclosure of the personal information to recipients;
• Information on automated processes where the data will or likely to be made
as the sole basis for any decision significantly affecting or will affect the data
subject;
• Date when his or her personal information concerning the data subject were
last accessed and modified; and
• The designation, or name or identity and address of the personal information
controller.
3. Right to Rectification or Correction - Dispute the inaccuracy or error in the personal

information and have the personal information controller correct it immediately and
accordingly, unless the request is vexatious or otherwise unreasonable.
4. Right to Erasure or Blocking - Suspend, withdraw or order the blocking, removal or
destruction of his or her personal information from the personal information
controller’s filing system upon discovery and substantial proof that the personal
information are incomplete, outdated, false, unlawfully obtained, used for
unauthorized purposes or are no longer necessary for the purposes for which they
were collected.
5. Right to Damages - Be indemnified for any damages sustained due to such
inaccurate, incomplete, outdated, false, unlawfully obtained or unauthorized use of
personal information.
6. Right to Data Portability - The data subject shall have the right, where personal
information is processed by electronic means and in a structured and commonly used
format, to obtain from the personal information controller a copy of data undergoing
processing in an electronic or structured format, which is commonly used and allows
for further use by the data subject
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*Official Gazette. (2012, August 15). Republic Act No. 10173: An Act Protecting Individual
Personal Information In Information And Communications Systems In The Government
And The Private Sector, Creating For This Purpose A National Privacy Commission, And
For Other Purposes. Retrieved January 16, 2021, from
https://www.officialgazette.gov.ph/2012/08/15/republic-act-no-10173/
Let’s Check
Activity 1. Choose the letter of the correct answer.
1. The right to be let alone - the most comprehensive of rights and the right most valued by
civilized men.
a. Right to Privacy
b. Right to Access
c. Right to Information
d. Right to Personal Information
2. Refers to any information whether recorded in a material form or not, from which the
identity of an individual is apparent or can be reasonably and directly ascertained by the
entity holding the information, or when put together with other information would directly
and certainly identify an individual.
a. Sensitive Information
b. Personal Information
c. Privilege Information
d. Insider Information
3. The following are examples of Personal Information Processor, except:
a. Mail Service Providers

b. Government Entities
c. Outsource Companies
d. IT Service Provider
4. The following are examples of Personal Information Controller, except:
a. SM Advantage Card
b. Government Entities
c. Mercury Suki Card
d. IT Service Provider
5. The individual’s ability to control the flow of information concerning or describing him,
which however must be overbalanced by legitimate public concerns.
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a. Right to Privacy
b. Right to Access
c. Right to Information
d. Right to Personal Information
Activity 2. You have a list of information below. Identify whether such information is a Personal
Information or Sensitive Personal Information. Write PI if the item is a personal information, and
Right SPI if the same is Sensitive Personal Information:
Item No. Information Kind of Information
1 Yahoo Account
2 Date of Birth
3 Post Graduate Degree
4 Location of Business
5 LGBT Membership
6 Medical Certificate
7 Vocational Course
8 Alias
9 Roman Catholic
10 Family Portrait
Let’s Analyze
Activity 1. Enumerate at least three (3) rights under the Data Privacy Act of 2012, explain the
concept of such rights and provide 2 examples of each right.
1. ______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
2. ______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
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3. ______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Activity 2. Kindly prepare a VENN DIAGRAM that will illustrate the similarities and differences of
Personal Information and Sensitive Personal Information. Give at least three (3) similarities and
differences among the two and present your comparison in a bullet form.
In a Nutshell
Activity 1. The Data Privacy Act applies to an act done or practice engaged in and outside
of the Philippines by an entity if:
(a) The act, practice or processing relates to personal information about a

Philippine citizen or a resident;
Your Turn
1. ______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
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______________________________________________________________________
______________________________________________________________________
2. ______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
3. ______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
4. ______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Q&A List
1.
2.
3.
4.
5.
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Keywords Index
Right to Privacy Personal Information Principle of Data Subject

Accountability
Right to Information Privilege Information Right to Rectification Right to Erasure or
Privacy or Correction Blocking
National Privacy Personal Information Extraterritorial Personal Information
Commission Controller Application Processor
Big Picture in Focus: ULOc. Explain the legal recognition of

electronic documents.
Metalanguage
Below are the essential terms that you are going to encounter in the pursuit of ULOc. Again, you
are advised to frequently refer to these definitions to help you understand the succeeding topics.
1. Addressee. Refers to a person who is intended by the originator to receive the electronic
data message or electronic document. The term does not include a person acting as an
intermediary with respect to that electronic data message or electronic document.
2. Computer. Refers to any device or apparatus which, by electronic, electro-mechanical or
magnetic impulse, or by other means, is capable of receiving, recording, transmitting,
storing, processing, retrieving, or producing information, data, figures, symbols or other
modes of written expression according to mathematical and logical rules or of performing
any one or more of those functions.
3. Electronic Data message. Refers to information generated, sent, received or stored by
electronic, optical or similar means.
4. Information and communication system. Refers to a system intended for and capable
of generating, sending, receiving, storing or otherwise processing electronic data
messages or electronic documents and includes the computer system or other similar
device by or in which data is recorded or stored and any procedures related to the
recording or storage of electronic data message or electronic document.
5. Electronic signature. Refers to any distinctive mark, characteristic and/or sound in
electronic form, representing the identity of a person and attached to or logically
associated with the electronic data message or electronic document or any methodology
or procedures employed or adopted by a person and executed or adopted by such person
with the intention of authenticating or approving an electronic data message or electronic
document.
6. Electronic document. Refers to information or the representation of information, data,
figures, symbols or other modes of written expression, described or however represented,
by which a right is established or an obligation extinguished, or by which a fact may be
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proved and affirmed, which is received, recorded, transmitted, stored, processed,

retrieved or produced electronically.
7. Electronic key. Refers to a secret code which secures and defends sensitive information
that crosses over public channels into a form decipherable only with a matching electronic
key.
8. Intermediary. Refers to a person who in behalf of another person and with respect to a
particular electronic document sends, receives and/or stores or provides other services in
respect to that electronic document.
9. Originator. Refers to a person by whom, or on whose behalf, the electronic document
purports to have been created, generated and/or sent. The term does not include a person
acting as an intermediary with respect to that electronic document.
10. Service provider. Refers to a provider of:
a. On-line services or network access, or the operator of facilities thereof, including

entities offering the transmission, routing, or providing of connections for online
communications, digital or otherwise, between or among points specified by a user, of
electronic documents of the user’s choosing; or
b. The necessary technical means by which electronic documents of an originator may
be stored and made accessible to a designated or undesignated third party;
c. Such service providers shall have no authority to modify or alter the content of the
electronic data message or electronic document received or to make any entry therein
on behalf of the originator, addressee or any third party unless specifically authorized
to do so, and who shall retain the electronic document in accordance with the specific
request or as necessary for the purpose of performing the services it was engaged to
perform.
Essential Knowledge
CONCEPT OF ELECTRONIC COMMERCE ACT OF 2000
Legal recognition of Electronic Writing Or Document And Data Messages:
1. Legal Recognition of Data Messages - Information shall not be denied legal effect,
validity or enforceability solely on the grounds that it is in the data message purporting to
give rise to such legal effect, or that it is merely referred to in that electronic data message.
2. Legal Recognition of Electronic Documents - if the said electronic document maintains
its integrity and reliability and can be authenticated so as to be usable for subsequent
reference.
3. Legal Recognition of Electronic Signatures - An electronic signature on the electronic
document shall be equivalent to the signature of a person on a written document if that
signature is proved by showing that a prescribed procedure, not alterable by the parties
interested in the electronic document.
Electronic Documents shall be considered to be Original Document if the integrity of the

information from the time when it was first generated in its final form, as an electronic data
message or electronic document is shown by evidence aliunde or otherwise.
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Authentication of Electronic Data Messages and Electronic Documents:
Ø The electronic data message and electronic document shall be authenticated by proof
that an appropriate security procedure, when applicable was adopted and employed for
the purpose of verifying the originator of an electronic data message and/or electronic
document, or detecting error or alteration in the communication, content or storage of an
electronic document or electronic data message from a specific point, which, using
algorithm or codes, identifying words or numbers, encryptions, answers back or
acknowledgement procedures, or similar security devices.
Ø The person seeking to introduce an electronic data message and electronic document in
any legal proceeding has the burden of proving its authenticity by evidence capable of
supporting a finding that the electronic data message and electronic document is what
the person claims it to be.
Rules on the Agreement on Acknowledgment of Receipt of Electronic Data Messages or

Electronic Documents:
a. Where the originator has not agreed with the addressee that the acknowledgment be given
in a particular form or by a particular method, an acknowledgment may be given by or
through any communication by the addressee, automated or otherwise, or any conduct of
the addressee, sufficient to indicate to the originator that the electronic data message or
electronic document has been received.
b. Where the originator has stated that the effect or significance of the electronic data
message or electronic document is conditional on receipt of the acknowledgment thereof,
the electronic data message or electronic document is treated as though it has never been
sent, until the acknowledgment is received.
c. Where the originator has not stated that the effect or significance of the electronic data
message or electronic document is conditional on receipt of the acknowledgment, and the
acknowledgment has not been received by the originator within the time specified
Place of Dispatch and Receipt of Electronic Data Messages or Electronic Documents -

Unless otherwise agreed between the originator and the addressee, an electronic data message
or electronic document is deemed to be dispatched at the place where the originator has its place
of business and received at the place where the addressee has its place of business.
Lawful Access - Access to an electronic file, or an electronic signature of an electronic data

message or electronic document shall only be authorized and enforced in favor of the individual
or entity having a legal right to the possession or the use of the plaintext, electronic signature or
file and solely for the authorized purposes. The electronic key for identity or integrity shall not be
made available to any person or party without the consent of the individual or entity in lawful
possession of that electronic key.
*Official Gazette. (2000, June 14). Republic Act No. 8792: An Act Providing For The Recognition
and Use of Electronic Commercial And Non-Commercial Transactions, Penalties For Unlawful
34
Matina, Davao City
Phone No.: (082)305-0645 Local 137
Use Thereof, and Other Purposes. Retrieved May 11, 2020, From
https://www.officialgazette.gov.ph/2000/06/14/republic-act-no-8792-s-2000/
Let’s Check
Activity 1. Indicate whether the following statements are true or false. If the statement is correct,
write TRUE. If the statement is incorrect, write FALSE and the word/s that make/s the statement
incorrect.
__________1. Access to electronic documents shall be lawful even if there is no authority from
the addressee.
__________2. The place of dispatch and receipt of Electronic Documents shall be at the place
where the originator has its place of business and received regardless of the agreement of the
originator and the addressee.
__________3. Electronic Documents shall be considered to be Original Document if the integrity

of the information from the time when it was first generated in its final form, as an electronic data
message or electronic document is shown by evidence aliunde or otherwise.
__________4. An Intermediary is a person by whom, or on whose behalf, the electronic document

purports to have been created, generated and/or sent. The term does not include a person acting
as an intermediary with respect to that electronic document.
__________5. An Originator is a person who in behalf of another person and with respect to a
particular electronic document sends, receives and/or stores or provides other services in respect
to that electronic document.
__________6. The Addressee is a person who is intended by the originator to receive the
electronic data message or electronic document. The term does not include a person acting as
an intermediary with respect to that electronic data message or electronic document.
__________7. An Electronic signature refers to any distinctive mark, characteristic and/or sound
in electronic form, representing the identity of a person and attached to or logically associated
with the electronic data message or electronic document or any methodology or procedures
employed or adopted by a person and executed or adopted by such person with the intention of
authenticating or approving an electronic data message or electronic document.
__________8. Information and communication system refers to information generated, sent,

received or stored by electronic, optical or similar means.
__________9. Electronic Data message refers to a system intended for and capable of
generating, sending, receiving, storing or otherwise processing electronic data messages or
electronic documents and includes the computer system or other similar device by or in which
data is recorded or stored and any procedures related to the recording or storage of electronic
data message or electronic document.
35
Matina, Davao City
Phone No.: (082)305-0645 Local 137
__________10. Electronic key refers to a secret code which secures and defends sensitive
information that crosses over public channels into a form decipherable only with a matching
electronic key.
Let’s Analyze
Activity 1. Answer the following questions and answer with legal basis.
PROBLEM 1:
Yvan was a slot machine operator supervisor in a casino operated by the Philippine
Amusement and Gaming Corporation (PAGCOR). On the basis of an intelligence report, he was
found, in connivance with some slot machine customers, to have padded the credit meter
readings of slot machines in the casino where he was employed. After being served with notice
and opportunity to contest the findings, he was found guilty of the charges and ordered dismissed
by PAGCOR. After receiving his copy of the order for dismissal, he claimed to have sent to the
Board of PAGCOR his motion for reconsideration through facsimile transmission. After a
considerable time, when his motion for reconsideration was unacted upon, he filed an action with
the Civil Service Commission (CSC) for illegal dismissal. PAGCOR claimed that his action has
prescribed because it was filed more than 15 days after his dismissal became final. Yvan claimed
that there was no final decision yet because the Board of PAGCOR has not yet acted on his
motion for reconsideration. He presented a copy of his facsimile transmission addressed to the
Board of PAGCOR seeking reconsideration of his dismissal, and the fact that there has been no
action taken. He claimed that based on the Electronic Commerce Act of 2000, his facsimile
transmission should be considered like any genuine and authentic paper pleading. PAGCOR
denied having received it and was able to prove that the telephone number of PAGCOR used in
the facsimile transmission was wrong. CSC denied his complaint on account of prescription. He
appealed CSC's dismissal in court.
(a) Was CSC correct in dismissing the case?

(b) Can Yvan's bank be ordered by the court to disclose if there were unreasonable
increases in his bank deposit when the alleged acts were committed?
36
Matina, Davao City
Phone No.: (082)305-0645 Local 137
Q&A List
1.
2.
3.
4.
5.
Keywords Index
Addressee Computer Electronic Data Information and

message communication
system
Electronic signature Electronic document Electronic key Intermediary
Originator Service provider
37
Matina, Davao City
Phone No.: (082)305-0645 Local 137
Course Schedule
This section calendars all the activities and exercises, including readings and lectures, as well as
time for making assignments and doing other requirements.
Activity Date Where to Submit

Orientation BlackBoard LMS
Big Picture A: Let’s Check Activities BlackBoard LMS
Big Picture A: Let’s Analyze Activities BlackBoard LMS
Big Picture A: In A Nutshell BlackBoard LMS
Big Picture B: Q&A List Any day BlackBoard LMS – Forum

Big Picture B: Let’s Check Activities BlackBoard LMS
Big Picture B: Let’s Analyze Activities BlackBoard LMS
Big Picture B: In A Nutshell BlackBoard LMS
Big Picture B: Q&A List Any day BlackBoard LMS – Forum

Big Picture C: Let’s Check Activities BlackBoard LMS
Big Picture C: Let’s Analyze Activities BlackBoard LMS
Big Picture C: Q&A List Any day BlackBoard LMS - Forum
1st Formative Assessment January 29, 2021 BlackBoard LMS
Online Code of Conduct

1. Students are expected to abide by and honor code of conduct, and thus everyone and all are
exhorted to exercise self-management and self-regulation.
2. All students are guided by professional conduct as learners in attending On-Line Blended
Delivery (OBD) course. Any breach and violation shall be dealt with properly under existing
guidelines, specifically in Section 7 (Student Discipline) in the Student Handbook.
3. Professional conduct refers to the embodiment and exercise of the University’s Core Values,
specifically in the adherence to intellectual honesty and integrity; academic excellence by
giving due diligence in virtual class participation in all lectures and activities, as well as fidelity
in doing and submitting performance tasks and assignments; personal discipline in complying
with all deadlines; and observance of data privacy.
4. Plagiarism is a serious intellectual crime and shall be dealt with accordingly. The University
shall institute monitoring mechanisms online to detect and penalize plagiarism.
5. Students shall independently and honestly take examinations and do assignments, unless
collaboration is clearly required or permitted. Students shall not resort to dishonesty to
improve the result of their assessments (e.g. examinations, assignments).
6. Students shall not allow anyone else to access their personal LMS account. Students shall
not post or share their answers, assignment or examinations to others to further academic
fraudulence online.
7. By enrolling in OBD course, students agree and abide by all the provisions of the Online Code
of Conduct, as well as all the requirements and protocols in handling online courses.
38
Matina, Davao City
Phone No.: (082)305-0645 Local 137
Course prepared by:
ELLIS VICTOR B. COBARRUBIAS

Author
ATTY. MARIEL ARIANE MONTON

Author
Course reviewed by:
DEVZON U. PORRAS, MSA, CPA JADE D. SOLAÑA, MBA, CPA

Program Head – BSAIS/BSIA Program Head – BSA, BSMA
MARY GRACE S. SOMBILON

AD
Approved by:
LORD EDDIE I. AGUILAR, MBA, CPA

Dean
39

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UNIVERSITY OF MINDANAO

College of Accounting Education

Physically Distanced but Academically Engaged

Self-Instructional Manual (SIM) for

Course/Subject: ACCE 326 – ADVANCED BUSINESS LAW AND

THIS SIM/SDL MANUAL IS A DRAFT VERSION ONLY; NOT FOR

Big Picture Weeks 1-3: Unit Learning Outcomes 9

Big Picture in Focus: Unit Learning Outcomes b 22

Big Picture in Focus: Unit Learning Outcome c 32

Online Course of Conduct 38

Course Outline: ACCE 326 – Advanced Business Law and Taxation

Course Coordinators: Ellis Victor B. Cobarrubias

Course Outline Policy

Areas of Concern Details

If the assessment task is done in real time through the

Since this course is included in the licensure

Turnitin Submission (if To ensure honesty and authenticity, all assessment

Please note that academic dishonesty such as cheating

However, if the late submission of assessment paper has

For group assessment tasks, the course coordinator will

If disapproved by the course coordinator, you can

Grading System All culled from BlackBoard sessions and traditional

All culled from on-campus/onsite sessions (TBA):

Submission of the final grades shall follow the usual

Preferred Referencing Style Harvard business format.

Student Communication You are required to create a umindanao email account

You can also meet the course coordinator in person

For students who have not created their student email,

Contact Details of the Dean Lord Eddie I. Aguilar, MBA, CPA

Devzon U. Porras, MSA, CPA

Jade D. Solaña, MBA, CPA

UM GSTC Main CAE

UM Learning and Information Center-Davao City

For inquiries, you can email at

Course Information – see/download course syllabus in the Black Board LMS

CO This course is intended to give the students advanced knowledge in

Big Picture in Focus:

INTELLECTUAL PROPERTY IN GENERAL

Intellectual Property Rights under the Intellectual Property Code

Differences between copyrights, trademarks and patent:

Patentable Inventions Trademark Copyright

WHAT IS THE PURPOSE OF THE TRIPS AGREEMENT?

STANDARDS OF INVENTIONS TO BE PATENTABLE:

Prior art shall consist of:

Statutory Classes of Utility Models:

Grounds for Cancellation of Utility Models:

1. Discoveries, scientific theories and mathematical methods;

RULE ON OWNERSHIP OF A PATENT:

Who owns the Patent?

Exception: Inventions created pursuant to a commission.

What is the First-to-file Rule?

Grounds for Cancellation of Patent:

a. That what is claimed as the invention is not new or patentable;

Limitations on the Rights of Patentees:

TEST OF PATENT INFRINGEMENT:

b. Compulsory Licensing – It is the grant of the Director of Legal Affairs of a license to

GROUNDS FOR COMPULSORY LICENSING:

a. National emergency or other circumstances of extreme urgency;

TRADEMARK SERVICE MARK

Acquisition of Ownership of Marks:

Acquisition of Ownership of Trade Name:

TESTS TO DETERMINE CONFUSING SIMILARITY BETWEEN MARKS:

1. Colorable Imitation – It denotes such a close or ingenious imitation as to be calculated

1. Use in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered