CHAPTER ONE: FORGERIES 

Section One. — Forging the seal of the Government of the Philippine Islands, 

the signature or stamp of the Chief Executive 

Crime  Elements  Important Points to Remember  Penalty 

COUNTERFEITING
THE GREAT SEAL
OF THE
GOVERNMENT OF
THE PHILIPPINE
ISLANDS, FORGING
THE SIGNATURE OR
STAMP OF THE
CHIEF EXECUTIVE  3. Forging the stamp of
Art. 161. The penalty
of reclusion
temporal shall be
imposed upon any
person who shall forge
the Great Seal of the
Government of the
Philippine Islands or the
signature or stamp of the
Chief Executive. 
Acts Punished:   1. The President has custody and use of reclusion temporal 
1. Forging the Great Seal the Great Seal and shall be affixed to or
of the Government of the placed upon all commissions signed by
Philippines   him and upon such other official
  documents and papers of the country as
2. Forging the signature may by law provided or as may be
of the president   required by custom and usage in the
  discretion of the president. 
 
the president  2. The offense is not falsification of
public document but is the crime of
forging the signature of the president.  
 
3. The act punishable is counterfeiting
or making an imitation of the signature
of the Chief Executive on what is made
to appear as an official document of the
Rep. of the Philippines.  

     
USING FORGED 1. That the Great Seal 1. The offender under this article should prision mayor 
SIGNATURE OR of the Republic was not be the forger. 
COUNTERFEIT counterfeited or the  
SEAL OR STAMP  signature or stamp of 2. In using forged signature or stamp of
the Chief Executive was the Chief Executive, or forged seal, the
Art. 162. The penalty forged by another participation of the offender is in effect
of prision mayor shall person   that of an accessory but the provision
be imposed upon any 2. The offender knew of provided for its own penalty as opposed to
person who shall the counterfeiting or the penalty for accessories which is two
knowingly make use forgery   degrees lower than that of the principal 
of the counterfeit seal  
or forged signature or 3. He used the
stamp mentioned in counterfeit seal or
the preceding article.  forged signature or
stamp 

 
 
 Section Two. — Counterfeiting Coins 

Crime  Elements  Important Points to Remember  Penalty 

MAKING AND      
IMPORTING AND 1. There be false or Coin – is a piece of metal stamped 1. Prisión correcciona
UTTERING FALSE counterfeited coins   with certain marks and made current l in its minimum and
COINS    at a certain value   medium periods and a
Art. 163. Any person 2. The offender   fine not to exceed
who makes, imports, either made, Counterfeiting – means the ₱400,000 - if the
or utters false coins, in imported or uttered imitation of a legal or genuine coin; counterfeited coins be
connivance with such coins   there must be an imitation of the any of the coinage of
counterfeiters, or   peculiar design of a genuine coin   the Philippines. 
importers, shall suffer:  3. That in case of     
   uttering such false Import – means to bring them into 2. Prisión correccional 
1. Prisión correcciona or counterfeited port   in its minimum period
l in its minimum and coins, he connived   and a fine not to exceed
medium periods and a with the Utter – means to pass counterfeited ₱200,000 - if the
fine not to exceed four counterfeiters or coins; includes their delivery or act counterfeited coin be
hundred thousand importers  of giving them away  currency of a foreign
pesos (₱400,000), if   country. 
the counterfeited coins Kinds of Coins the Counterfeiting
be any of the coinage of which is Punished:  
of the Philippines.  a. Silver coin of the Philippines or
   coin of the Central Bank of the
2. Prisión correcciona Philippines  
l in its minimum b. Coin of minor coinage of the
period and a fine not to Philippines or of the Central Bank of
exceed two hundred the Philippines  
thousand pesos c. Coin of the currency of a foreign
(₱200,000), if the country 
counterfeited coin be  
currency of a foreign Note: 
country.  1. A coin is false or counterfeited if it
is forged or if it is not authorized by
the government as legal tender,
regardless of its intrinsic value  
2. The Art. Penalize the making,
importing and uttering of false coins,
whether of the Philippines or a
foreign country because it is intended
to protect not only the coins legally
minted but also the public in
general.  
3. A counterfeited coin is uttered
when it is paid, when the offender is
caught counting the counterfeited
coins preparatory to the act of
delivering them, even though the
utterer may not obtain the gain
intended.  
4. Former coins withdrawn from
circulation may be counterfeited
under Article 163. 
 Crime Elements Important Points to Remember Penalty
     
MUTILATION OF Acts Punished:   Mutilation – means to take off part of prisión correccional in
COINS; 1. Mutilating coins of the metal either by filing it or its minimum period and
IMPORTATION AND the legal currency, substituting it for another metal of a fine not to exceed
UTTERANCE OF with further inferior quality; to diminish by ₱400,000 
MUTILATED COINS  requirement that there ingenuous means the metal in the
be intent to damage or coin. 
Art. 164. The penalty to defraud another    
of prisión correccional i   Legal Tender - coins/ bank notes that
n its minimum period 2. Importing or must be accepted if offered in
and a fine not to exceed uttering such mutilated payment of a debt, whether public or
four hundred thousand coins, with the further private. 
pesos (₱400,000) shall be requirement that there  
imposed upon any person must be connivance Note: 
who shall mutilate coins with the mutilator or 1. The coin must be of legal tender
of the legal currency of importer in case of in mutilation  
the Philippines or import uttering   
or utter mutilated current 2. Coins of foreign country not
coins, or in connivance included 
with mutilators or
importers. 

SELLING OF FALSE 1. Possession of coin, 1. Possession of or uttering false coin Penalty lower by one
OR MUTILATED counterfeited or does not require that the counterfeited degree than that
COIN, WITHOUT mutilated by another coin is legal tender   prescribed in said
CONNIVANCE   person, with intent to articles 
  utter the same, 2.Constructive possession (subjection
Art. 165. The person knowing that it is false of the thing to one’s control) and not
who knowingly, although or mutilated   only actual and physical possession is
without the connivance a. Possession   included.  
mentioned in the b. With intent to utter    
preceding articles, shall c. Knowledge   3. Accused must have knowledge of
possess false or mutilated   the fact that the coin is false  
coin with intent to utter 2. Actually uttering  
the same, or shall such false or mutilated 4. Punishable even if the offender was
actually utter such coin, coins, knowing the not in connivance with counterfeiter
shall suffer a penalty same to be false and or mutilator. 
lower by one degree than mutilated    
that prescribed in said a. Actually uttering   5. If the false or mutilated coins are
articles. b. Knowledge found in the possession of the
counterfeiters, or mutilators, or
importers, such possession does not
constitute a separate offense but is
identified with the counterfeiting or
mutilation or importation. 
 
6. If the coin being uttered or
possessed with intent to utter is a
mutilated coin, it must be a legal
tender coin because of Art. 164 in
relation to Art. 165.  
 Section Three. — Forging treasury or bank notes, obligations and securities; importing and uttering false or
forged notes, obligations and securities

Crime Elements Important Points to Remember Penalty

 
FORGING TREASURY OR Acts Punishable:   Obligation or Security – all bonds, certificates of Penalties
BANK NOTES OR OTHER 1. Forging or indebtedness, national bank notes, coupons, treasury depend upon
DOCUMENTS PAYABLE TO falsification of notes, fractional notes, certificates of deposits, bills, the kind of
BEARER; IMPORTING, AND treasury or bank checks, drafts for money, and other representatives of forged treasure
UTTERING SUCH FALSE OR notes or other value under any act of Congress   or bank notes
FORGED NOTES AND documents payable to   or other
DOCUMENTS   bearer   Forging – committed by giving to a treasury or bank documents:
    note or any instrument payable to bearer or to order
Art. 166. The forging or falsification 2. Importation of the appearance of a true and genuine document; to 1. obligation or
of treasury or bank notes or such false or forged forge an instrument is to make false instrument security of the
certificates or other obligations and obligations or notes   intended to be passed for the genuine one   Philippines -
securities payable to bearer and the   Falsification – committed by erasing, substituting, reclusion
importation and uttering in 3. Uttering of such counterfeiting, or altering by any means, the figures, temporal in its
connivance with forgers or importers false or forged letters, words, or signs contained therein   minimum
of such false or forced obligation or obligations or notes   period and a
notes shall be punished as follows:  in connivance with Importation of False or Forged Obligations or fine not to
  the forgers or Notes – means to bring them into the Philippines, exceed
1. By reclusion temporal in its importers  which presupposes that the obligations or notes are ₱2,000,000
minimum period and a fine not to forged or falsified in a foreign country  
exceed two million pesos  
2. circulating
(₱2,000,000), if the document which The code punishes Uttering of False or Forged Obligations or Notes –
note issued by
has been falsified, counterfeited, or forging or means offering obligations or notes knowing them to
any banking
altered is an obligation or security of falsification of bank be false or forged, whether such offer is accepted or
association
the Philippines.  notes and of not, with a representation, by words or actions, that
duly authorized
       The words ‘obligation or security documents of credit they are genuine and with an intent to defraud  
by law to issue
of the Philippines’ shall mean all payable to bearer  
the same -
bonds, certificates of indebtedness, and issued by the Notes and other obligations and securities that
prisión mayor
national bank notes, coupons, State more severely may be forged or falsified under Article 166:  
in its maximum
Philippine notes, treasury notes, that counterfeiting a. Treasury or bank notes 
period and a
fractional notes, certificates of coins because —   b. Certificates  
fine not to
deposit, bills, checks, or drafts for 1) the first tends to c. Other obligations and securities, payable to bearer 
exceed
money, drawn by or upon authorized bring such documents  
₱1,000,000
officers of the Philippines, and other into discredit and the The instrument is payable to bearer when -  
representatives of value, of whatever offense produces a a. expressed to be payable 
denomination, which have been or lack of confidence on b. payable to a person named therein or bearer  3. document
may be issued under any act of the part of the holders c. payable to the order of a fictitious or non-existing issued by a
Congress.  of said document to person and such fact was known to the person foreign
  the prejudice of the making it payable  government -
2. By prisión mayor in its maximum interest of society and d. the name of the payee does not purport to be the arresto mayor
period and a fine not to exceed one of the State.  name of any person     in its medium
million pesos (₱1,000,000), if the e. the only or last endorsement is an endorsement in period and a
falsified or altered documents is a 2) it is easier to forge blank  fine not to
circulating note issued by any or falsify such   exceed
banking association duly authorized certificates, notes Note:  ₱1,000,000
by law to issue the same.  and documents of 1. A bank note, certificate or obligation and security
  credit than to make is payable to bearer when it can be negotiated by 4. circulating
3. By arresto mayor in its medium counterfeited coins mere delivery.  note or bill
period and a fine not to exceed one and the profit derived 2. Uttering of forged bill must be with connivance issued by a
million pesos (₱1,000,000), if the from therefrom is with forgers or importers of such false or forged foreign bank
falsified or counterfeited document greater and the obligations or notes to constitute a violation under duly authorized
was issued by a foreign government.  incentive for the Art. 166.  therefor -
  commission od such 3. The falsification of bank check is not forgery prisión mayor
4. By prisión mayor in its minimum crime more under Art. 166 but falsification of commercial in its minimum
period and a fine not to exceed four powerful.  documents.  period and a
hundred thousand pesos (₱400,000), 4. The falsification of a depository war damage check fine not to
when the forged or altered document for the purpose of cashing the same exceed
is a circulating note or bill issued by a
foreign bank duly authorized
therefor.  5. Money bills issued by the Central Bank are
Crime
COUNTERFEITING,
IMPORTING AND
UTTERING
INSTRUMENTS NOT
PAYABLE TO BEARER
 
Art. 167. Any person who
shall forge, import or utter, in
connivance with the forgers
or importers, any instrument
payable to order or other
document of credit not
payable to bearer, shall suffer
the penalties
of prisión correccional in its
medium and maximum
periods and a fine not
exceeding one million two
hundred thousand pesos
(₱1,200,000).  the government of worthless notes or obligations.
ILLEGAL POSSESSION
AND USE OF FALSE
TREASURY OR BANK
NOTES AND OTHER
INSTRUMENTS OF
CREDIT 
Art. 168. Unless the act be
one of those coming under
the provisions of any of the
preceding articles, any person
who shall knowingly use or
have in his possession, with
intent to use any of the false
or falsified instruments
referred to in this section,
shall suffer the penalty next
lower in degree than that
prescribed in said articles.  a. using any of such forged or
Art. 169. How forgery is
committed. — The forgery
referred to in this section may
be committed by any of the
following means:  payable to bearer or to order
  1. By giving to a treasury or
bank note or any instrument,
payable to bearer or order
mentioned therein, the
appearance of a true
genuine document. 
 2. By erasing, substituting,
counterfeiting or altering by
constitutes estafa through falsification of an official ₱400,000
and commercial document.
national bank notes.
Elements Important Points to Remember Penalty
1. There be an instrument 1. The counterfeiting under this art. involves an prisión
payable to order or other instrument payable to order or other document of correccional
document of credit not credit not payable to bearer.    in its medium
2. It includes such instruments or document of
payable to bearer   and maximum
credit issued by a foreign government or bank
  periods and a
because the act punished includes importing
2. The offender either forged, fine not
without specifying the country or government
imported or uttered such exceeding
issuing them. 
instrument   3. Connivance is not required in uttering if the ₱1,200,000.00
  utterer is the forger 
3. In case of uttering, he 4. The instrument is payable to order where it is
connived with the forger or drawn payable to the order of a specified person or
importer  to him or his order. It is negotiated by endorsement
and delivery. 
5. Forgery of currency is punished so as to
maintain the integrity of the currency and
thus ensure the credit standing of the government
and prevent the imposition on the public and
 
1. That any treasury or bank 1. To constitute as an offense under Art. 168, the penalty next
not or certificate or possession of false treasury or bank notes must lower in degree
other obligation and security be with intent to use the same – intent to possess than that
prescribed in
payable to bearer, or is not intent to use
said articles:
any instrument payable to 2. Possession of false treasury or bank notes
order or other document of alone is not a criminal offense.
credit not payable to bearer 3. Intent to use, although the falsified obligation
is forged or falsified by or notes was not accepted by the person to
another person  whom it was handed in the course of a
  transaction, is sufficient to consummate the
2. The offender knows that crime when the offender is in possession of false
any of those or falsified obligations or notes.
instruments is forged or 4. Accused must have knowledge of forged
falsified  character of the note
  5. A person in possession of falsified document
3. He performs any of these and who makes use of the same is presumed
acts:  to be the material author of falsification
6. It is not an impossible crime when the act
falsified instruments  performed would have been a crime of illegal
b. possessing with intent to possession of false treasury notes
use any of such forged
or falsified instruments
Forgery is Committed: Forgery includes falsification and
a. By giving to a treasury or counterfeiting:
bank note or any instrument a) acts of counterfeiting or forging said
instruments
mentioned therein, the b) acts of falsification
appearance of a true and
genuine document
Note:
* Defacement, mutilation, tearing, burning or
b. By erasing, substituting, destroying of Central Bank notes and coins are
counterfeiting, or altering by penalized under PD No. 247
any means the figures, letters, Penalty: fine of not more than ₱20,000.00 and/or
words, or sign contained
any means the figures, letters, therein imprisonment of not more than 5 years
words or signs contained
therein.

Section Four. — Falsification of legislative, public, commercial, and private documents,

and wireless, telegraph, and telephone message

Crime Elements Important Points to Remember Penalty

FALSIFICATION
OF LEGISLATIVE 1. That there be a bill, resolution or 1. Bill, resolution or ordinance must be prisión
DOCUMENTS ordinance enacted or approved or genuine correccional in
pending approval by either House of its maximum
Art. 170. The penalty the Legislature or any provincial board 2. The offender should be someone who has and a fine not
of prisión or municipal council no proper authority to make the alteration. to exceed
correccional in its ₱1,200,000.00
maximum and a fine 2. The offender alters the same 3. The act of falsification in legislative
not to exceed one document is limited to altering it which
million two hundred 3. He has no proper authority therefore changes its meaning
thousand pesos
(₱1,200,000) shall be 4. The alteration has changed the 4. Falsification under Art. 170 is committed
imposed upon any meaning of the document by altering a legislative document, which
person who, without presupposes that the bill, etc. altered must be
proper authority genuine – enacted or approved or pending
therefor alters any bill, approval by the Congress or any provincial
resolution, or board or municipal council.
ordinance enacted or
approved or pending
approval by either
House of Congress or
any provincial board
or municipal council.

FALSIFICATION 1. Offender is a public officer, 1. In falsification by making alteration or

BY PUBLIC employee or notary public intercalation or including in a copy a
OFFICER, different statement, there must be a genuine document that is
EMPLOYEE OR 2. He takes advantage of his official falsified; in other paragraphs, falsification may be committed
NOTARY OR position by simulating or fabricating a document
ECCLESIASTIC (a) He has duty to make or to prepare 2. If the offender was a public officer but did not take
MINISTER or otherwise intervene in the advantage of his official position, he shall be liable for
preparation of the document; or falsification under Art. 172
Art. 171. The penalty (b) He has the official custody of the
of prisión mayor and a document which he falsifies Document – any writing or instrument by which a right is
fine not to exceed one established or an obligation extinguished; and by which a fact
million pesos 3. That he falsifies a document by may be proven and affirmed.
(₱1,000,000) shall be committing any of the following acts: (a) It is not necessary that the document be real, it is enough
imposed upon any that it be given the appearance of a genuine document and it
public officer, (1.) counterfeiting or imitating or must be of apparent legal efficacy.
employee, or notary feigning any handwriting, signature or (b) Even if the document is originally a private document, if it
who, taking advantage rubric is in the official custody of the public officer or employee or if
of his of position shall i. that there be an intent to imitate, it is falsified by the public officer or employee, the crime
falsify a document by or an attempt to imitate committed should be punished under Art. 171.
committing any of the ii. that the two signatures or
following acts: handwritings, the genuine and the Paragraph 1
forged, bear some resemblance to each Counterfeiting – imitating any handwriting, signature or
1. Counterfeiting or other rubric
using any handwriting, Feigning – simulating a signature, handwriting or rubric out of
signature or rubric; (2) causing it to appear that persons one which does not in fact exist
have participated in any act or (a) The signature, handwriting or mark of another person must
2. Causing it to appear proceeding when they did not in fact so be signed or made by the offender, without authority to do so
that persons have participate (b) In feigning, there is no original signature, handwriting or
participated in any act i. the offender caused it to appear in rubric that does not exist.
or proceeding when a document that a person(s)
they did not in fact so participated in an act or proceeding
participate; ii. that such person(s) did not in fact
so participate in the act or proceeding
3. Attributing to (3) Attributing to person who have Paragraph 2
persons who have participated in an act or proceeding (a) When the “causing to appear that persons have participated
participated in an act statements other than those in fact in any act or proceeding when they did not in fact so
or proceeding made by them participate” is committed by a private individual, Article 172
statements other than i. that a person(s) participated in an should apply.
those in fact made by act or
them; proceeding Paragraph 3
ii. that such person(s) made (a) Counterfeiting in a document the intervention of another to
4. Making untruthful statements in that act or proceeding whom the offender ascribed statements different from what the
statements in a iii. that the offender, in making the other party had made to him and by perverting the truth in the
narration of facts; document, attributed to such person(s) narration of facts, through deceit, getting them to sign said
statements other than those in fact document, is a crime under par. (3) of Art. 171.
5. Altering true dates; made by such person(s)
Paragraph 4
6. Making any (4) Making untruthful statements in a Legal Obligation – there is a law requiring the disclosure of
alteration or narration of facts the truth of the facts narrated
intercalation in a i. that the offender makes in a (a) Perversion of truth must be made with the wrongful intent
genuine document document statements in a narration of of injuring a third person (document is a private instrument)
which changes its facts (b) Wrongful intent is not essential when the document
meaning; ii. that he has a legal obligation to falsified is a public document
disclose the truth of the facts narrated (c) The person making the narration of facts must be aware of
7. Issuing in an by him the falsity of the facts narrated by him
authenticated form a iii. that the facts narrated by the (d) There must be a narration of facts, not of conclusion of law
document purporting offender are absolutely false (e) Good faith is a defense
to be a copy of an (f) Falsification by omission is punishable
original document (5) Altering true dates (g) If the statement is not altogether false, there being some
when no such original colorable truth in such statements, the crime of falsification is
exists, or including in (6) Making any alteration or not deemed to have been committed.
such a copy a intercalation in a genuine (h) The fact that one’s consent to a contract was obtained by
statement contrary to, document which changes its meaning means of violence does not make the facts narrated therein
or different from, that i. that there be an alteration false
of the genuine (change) or intercalation (insertion) on
original; or a document Paragraph 5
ii. that it was made a genuine (a)The date(s) must be essential, the alteration of which in a
8. Intercalating any document document must affect either the veracity of the document or the
instrument or note iii. that the alteration or intercalation effects thereof to constitute a crime under Art. 171(5).
relative to the issuance has changed the meaning of the
thereof in a protocol, document Paragraph 6
registry, or official iv. that the change made the (a) Alteration in violation of the law is one which cause the
book. document speak something false instrument to speak a language different in legal effects from
that which it originally spoke.
The same penalty (7) Acts Punished: (b) Alteration which speaks the truth is not falsification but
shall be imposed upon i. purporting to be a copy of an merely correction
any ecclesiastical original when no such original exists
minister who shall ii. including in a copy of a statement Paragraph 7
commit any of the contrary to, or different from, that of (a) Such acts can only be made by a public officer or notary
offenses enumerated the genuine original public who takes advantage of his official position, since the
in the preceding authentication of a document can be made only by the
paragraphs of this (8) Intercalating any instrument or note custodian or the one who prepared and retained a copy of the
article, with respect to relative to the issuance thereof in a original document.
any record or protocol, registry or official book. (b) A private person who cooperates with a public officer in
document of such the falsification of a public document is guilty of the crime and
character that its 4. In case the offender is an incurs the same liability and penalty as the public officer
falsification may ecclesiastical minister, the act of (c) Intent to gain or prejudice to a third person is not necessary
affect the civil status falsification is committed with because it is the interest of the community which is intended to
of persons respect to any record or document of be guaranteed by the strictest faithfulness of the officials
such character that its falsification charged with the preparation and preservation of the acts in
may affect the civil status of persons which they intervene.
 Crime Elements
FALSIFICATION Acts Punished and their
BY PRIVATE Requisites:
INDIVIDUAL 1. Falsification of public,
AND USE OF official or commercial
FALSIFIED document by a
DOCUMENTS private individual
a) that the offender is a
Art. 172. The private individual or a public
penalty of prisión officer or employee who did
correccional in its not take advantage of his
medium and official position
maximum periods b) that he committed any
and a fine of not of the acts of falsification
more than One enumerated in Article 171
million pesos c) that the falsification
(₱1,000,000) shall was committed in a public or
be imposed upon: official or commercial
document
1. Any private
individual who shall 2. Falsification of private
commit any of the document by any person
falsifications a) that the offender
enumerated in the committed any of the acts of
next preceding falsification, enumerated in
article in any public Article 171 [except those in
or official document par (7)]
or letter of exchange b) that the falsification
or any other kind of was committed in any
commercial private document
document; c) that the falsification
caused damage to a third
2. Any person who, party or at least the
to the damage of a falsification was committed
third party, or with with intent to cause such
the intent to cause damage
such damage, shall
in any private 3. Use of falsified document
document commit Introducing in Judicial
any of the acts of Proceeding:
falsification a) that the offender knew
enumerated in the that a document was falsified
next preceding by another person
article; and b) that the false document
is embraces in Article 171 or
3. Any person who in any subdivision no 1 or 2
shall knowingly or Article 172
introduce in c) that he introduced said
evidence in any document in evidence in any
judicial proceeding judicial proceeding
or to the damage of
another or who, Use in Any Other
with the intent to Transaction:
cause such damage, a) that the offender knew
shall use any of the that a document was falsified
false documents by another person
embraced in the b) that the false document
next preceding is embraced in Article 171 or
article, or in any of in any of subdivision no. 1 or
the foregoing 2 of Article 172
subdivisions of this c) that he used such
article, shall be document (not in judicial
punished by the proceedings)
Important Points to Remember Penalty
Four Kinds of Documents prisión
1. Public Document – created, executed or issued by a public official correccional in
in response to exigencies of public service, or in execution of which its medium and
a public official intervened (any instrument authorized by a notary maximum periods
public or a competent public official with the solemnities required by and a fine of not
law) more than
2. Official Document – issued by a public official in exercise of the ₱1,000,000.00
functions of his office
3. Private Documents – deed or instrument executed by a private
person without the intervention of notary public or other person
legally authorized, by which document some disposition or
agreement is proved, evidenced or set forth
4. Commercial Documents – documents used by merchants or
businessmen to promote or facilitate trade
Public Writing under Rules of Court
1. written official acts or records of official acts of the sovereign
authority, official bodies and tribunals and public officers, whether
of the Philippines or of a foreign country
2. documents acknowledge before a notary public except last will
and testaments
3. public records kept in the Philippines of private documents
required by law to be entered therein
Note:
(a) All other documents are private (Sec. 19, Rule 132)
(b) A private document may acquire the character of a public
document when it becomes part of an official record and is certified
by a public officer duly authorized by law.
Paragraph 1
(a) Mere blank form of official document is not in itself a document
(b) Possessor of falsified document is presumed to be author of
falsification
(c) Damage or intent to cause damage is not necessary in par 1
(d) Good faith and lack of malice or criminal intent is a good defense
in falsification of public document
(e) Falsification of public document may be done through reckless
imprudence.
(f) When the offender commits on a document any acts of
falsification as a necessary means to commit another crime, like
estafa, theft or malversation, the two crimes form a complex crime,
only when the document falsified is a public, official or commercial.
Paragraph 2
Mere falsification is not enough; requires:
1. offender must have counterfeited the false
document
2. offender must have performed an independent
act which operates to prejudice a third person
Note:
(a). The acts of falsification in par. (7) of Art. 171 cannot be
committed by a private individual since authentication of a document
can only be made by a public official who serves as the custodian.
(b). Damage need not be material nor the offender necessary profited
or hope to profit by falsification
(c) In falsification of a private document, there is no crime unless
another fact, independent of falsifying the document, is proved –
damage or intent to cause damage.
Paragraph 3
User is deemed author of falsification if:
(a) the use was so closely connected in time with falsification
penalty next lower d) that the use of the false
in degree documents caused damage to
another or at least it was
used with intent to cause
such damage
(b) the user had the capacity of falsifying the document
Note:
1. Damage is not necessary in crime of introducing in judicial
proceedings; but the intent to cause damage, at least, is required in
use of falsified document in proceeding not judicial.

Crime Elements Important Points to Penalty

Remember

FALSIFICATION Acts Punishable: 1. Private individual cannot 1. prision correccional in

OF WIRELESS, 1. Uttering fictitious wireless, be a principal by direct its medium and maximum
CABLE, telegraph or telephone message participation in falsification periods - utters fictitious
TELEGRAPH AND of any system of telegraphic dispatches wireless, telegraph or
TELEPHONE a) That the offender is an telephone message of any
MESSAGES, AND officer or employee of the 2. Private individual may system or falsifies the same
USE OF SAID government or of a private be held liable as principal
FALSIFIED corporation, engaged in the by inducement in 2. penalty next lower in
MESSAGES service of sending or receiving falsification of telegraph degree (arresto mayor)-
wireless, cable or telephone dispatches or telephone any person who use such
Art. 173. The penalty message messages falsified dispatch to the
of prision b) That the offender utters prejudice of a third party or
correccional in its fictitious wireless, cable, 3. If the private individual with the intent of cause
medium and telegraph or telephone message knowingly uses any such prejudice
maximum periods falsified wireless, cable or
shall be imposed upon telephone messages to the
officer or employee of 2. Falsifying wireless, telegraph prejudice of a third person,
the Government or of or telephone message of any or with intent to cause the
any private system same, it is not necessary
corporation or concern a) That the offender is an that he be connected with
engaged in the service officer or employee of the such corporation – Act. No.
of sending or government or of a private 1851, Sec. 4 punishes
receiving wireless, corporation, engaged in the private individuals who
cable or telephone service of sending or receiving forge or alter telegram
message who utters a wireless, cable or telephone
fictitious wireless, message
telegraph or telephone b) That the offender falsifies
message of any system wireless, cable, telegraph or
or falsifies the same. telephone message

Any person who

shall use such falsified 3. Using such falsified message
dispatch to the a) That the accused knew
prejudice of a third that wireless, cable, telegraph, or
party or with the intent telephone message was falsified
of cause such by any of the person specified in
prejudice, shall suffer the 1st paragraph of Article 173
the penalty next lower b) that the accused used such
in degree falsified dispatch
c) that the use of the falsified
dispatch resulted in the prejudice
of a 3rd party, or that the use
thereof was with intent to cause
such prejudice
 Section Five. — Falsification of medical certificates, certificates of merit or services and the like

Crime Elements Important Points to Remember Penalty

FALSE MEDICAL
CERTIFICATES, FALSE
CERTIFICATES OF
MERITS OR SERVICE, ETC.
Art. 174. The penalties of
arresto mayor in its maximum
period to prisión correccional in
its minimum period and a fine
not to exceed two hundred
thousand pesos (₱200,000) shall
be imposed upon:
1. Any physician or surgeon
who, in connection with the
practice of his profession, shall
issue a false certificate
2. Any public officer who shall
issue a false certificate of merit
of service, good conduct or
similar circumstances.
Persons Liable:
1. Physician or Surgeon – must
refer to illness or injury of a
person; called “False Medical
Certificate by a Physician”
2. Public Officer – includes
merit, service, good conduct or
similar circumstances; called
“False Certificate of Merit or
Service by a Public Officer”
3. Private Individual – “False
Medical Certificate by a Private
Individual” or “False Certificate
of Merit by a Private Individual”
Certificate – any writing by arresto mayor in its
which maximum period to
testimony is given that a fact has prisión correccional in
or has not taken place its minimum period
and a fine not to
Note: exceed ₱200,000.00
1. Falsification of certificate of
large cattle is now covered by
Article 171 or 172 and not 174
2. Falsification of certificate of
good moral and certificate of
residence includes in this Article.
arresto mayor

The penalty of arresto mayor

shall be imposed upon any
private person who shall falsify
a certificate falling within the
classes mentioned in the two (2)
preceding subdivisions.

USING FALSE 1. that the physician or surgeon arresto menor

CERTIFICATES
Art. 175. The penalty of arresto
menor shall be imposed upon
any one who shall knowingly
use any of the false certificates
mentioned in the next preceding
article
had issued a false medical
certificate, or a public officer
had issued a false certificate
of merit or service, good
conduce or similar circumstance,
or a private person had falsified
any of said certificates
2. that the offender knew that the
certificate was false

3. that he used the same

 Section Six. — Manufacturing, importing and possession of instruments or implements intended for the
commission of falsification

Crime Elements Important Points to Remember Penalty

MANUFACTURING 1. Making or introducing in to the 1. Implements confiscated need not prisión correccional in
AND POSSESSION OF Philippines any stamps, dies, form a complete set for counterfeiting its medium and
INSTRUMENTS OR marks or other instruments or or falsification maximum periods and
IMPLEMENTS FOR implements for counterfeiting or a fine not to exceed
FALSIFICATION falsification 2. The possession prohibited is ₱1,000,000.00
possession in general – not only actual
Art. 176. The penalty of 2. Possessing with intent to use and physical possession but also
prisión correccional in its the instruments or constructive possession or the
medium and maximum implements for counterfeiting or subjection of the thing to one’s
periods and a fine not to falsification made in or control.
exceed one million pesos introduced into the Philippines by
(₱1,000,000) shall be another person
imposed upon any person
who shall make or
introduce into the
Philippines any stamps,
dies, marks, or other
instruments or implements
intended to be used in the
commission of the offenses
of counterfeiting or
falsification mentioned in
the preceding section of
this Chapter.

Any person who, with

the intention of using them,
shall have in his possession
any of the instruments or
implements mentioned in
the preceding paragraphs,
shall suffer the penalty
next lower in degree than
that provided therein.
CHAPTER TWO: OTHER FALSIFICATIONS

Sec. One. — Usurpation of authority, rank, title, and improper use of names, uniforms and insignia

Crime Elements Important Points to Remember Penalty

USURPATION OF
AUTHORITY OR
OFFICIAL FUNCTIONS
Art. 177. Any person who
shall knowingly and falsely
represent himself to be an
officer, agent or representative
of any department or agency of
the Philippine Government or
of any foreign government, or
who, under pretense of official
position, shall perform any act
pertaining to any person in
authority or public officer of
the Philippine Government or
any foreign government, or any
agency thereof, without being
lawfully entitled to do so, shall
suffer the penalty of prision
correccional in its minimum
and medium periods.
Two Ways of Committing the
Crime:
1. By knowingly and falsely
representing oneself to be an
officer, agent or representative
of any department or agency of
the Philippine Government or
any foreign government
- In usurpation of authority,
the mere act of knowingly
and falsely representing
oneself to be an officer, etc. is
sufficient; it is not necessary
that he performs an act
pertaining to a public officer
2. By performing any act
pertaining to any person in
authority or public officer of the
Philippine Government or of a
foreign government or any
agency thereof, under pretense
of official position, and without
being lawfully entitled to do so
- In usurpation of official
functions, it is essential that
the offender should have
performed an act pertaining
to a person in authority or
public officer, in addition to
other requirements
Usurper – one who introduces himself prision
into an office that is vacant, or who, correccional in
without color of title, ousts the its minimum and
incumbent and assumes to acts as an medium periods
officer by exercising some of the
functions of the office.
Note:
1. There must be positive, express and
explicit representation – the offender
should have represented himself to be
an officer, agent or representative of
any department or agency of the
government; or should have performed
an act pertaining to a person in
authority or public officer
3. The act performed, without the
offender being lawfully entitled to do
so, must pertain to the government, or
to any person in authority, or to any
public officer
4. Usurpation of authority or official
functions of any officer of any foreign
government is also punished under the
Article
5. False representation may be shown
by acts
6. Article 177 may be violated by a
public officer

SIMILAR LAWS

REPUBLIC ACT No. 75
An act to penalize acts which
would impair the proper
observance by the republic and
inhabitants of the Philippines
of the immunities, right, and
privileges of duly accredited
foreign diplomatic and
consular agents in the
Philippines
Section 1. Any person who shall falsely assume and take upon himself to act Fine of not more
as a diplomatic, consular, or any other official of a foreign government duly than ₱5,000.00
accredited as such to the Government of the Republic of the Philippines with or imprisonment
intent to defraud such foreign government or the Government of the of not more than
Philippines, or any person, or in such pretended character shall demand or five years, or
obtain, or attempt to obtain from person or from said foreign government or both,
the Government of the Philippines, or from any officer thereof, any money,
paper, document, or other thing, of value, shall be fined not more than five in addition to the
thousand pesos, or shall be imprisoned for not more than five years, or both, penalties that
in addition to the penalties that may be imposed under the Revised Penal may be imposed
Code. under the RPC

REPUBLIC ACT NO. 10 Section 1. Any person who, with or without pretense of official position, Imprisonment of
An act penalizing usurpation of shall perform any act pertaining to the Government, or to any person in not less than two
public authority authority or public officer, without being lawfully entitled to do so, shall be years nor more
punished with imprisonment for not less than two years nor more than ten than ten years

Crime
USING FICTITIOUS
NAME AND
CONCEALING TRUE
NAME
Art. 178. The penalty of
arresto mayor and a fine
not to exceed one hundred
thousand pesos (₱100,000)
shall be imposed upon any
person who shall publicly
use a fictitious name for the
purpose of concealing a
crime, evading the
execution of a judgment or
causing damage.
Any person who
conceals his true name and
other personal
circumstances shall be
punished by arresto menor
or a fine not to exceed forty
thousand pesos (₱40,000).
ILLEGAL USE OF
UNIFORMS OR
INSIGNIA
Art. 179. The penalty of
arresto mayor shall be
imposed upon any person
who shall publicly and
improperly make use of
insignia, uniforms or dress
pertaining to an office not
held by such person or to a
class of persons of which
he is not a member.
years.
Elements
Using Fictitious Name:
1. The offender uses a name
other than his real name
2. He uses that fictitious name
publicly
3. The purpose of the offender
is to:
(a) conceal a crime
(b) evade the execution of
a judgment
(c) cause damage to public
interest
Concealing True Name:
1. That the offender conceals
his true name and all other
circumstances
2. That the purpose is only to
conceal his identity
1. That the offender makes use
of insignia, uniform or dress
2. That the insignia, uniform
or dress pertains to an office
not held by the offender or to a
class of persons of which he is
not a member
3. That said insignia, uniform
or dress is used publicly and
improperly
Important Points to Remember Penalty
Fictitious Name – any other name which a arresto mayor
person publicly applies to himself without and a fine not to
authority of law exceed
₱100,000.00 –
Distinction Between Use of Fictitious Name publicly using a
and Concealing True Name: fictitious name
1. In use of fictitious name, the element of for the purpose
publicity must be present; in concealing true of concealing a
name, that element is not necessary crime, evading
2. The purpose of use of fictitious name is any the execution of
of those enumerated; in concealing true name, it a judgment or
is merely to conceal identity’ causing damage
Note: arresto menor or
1. If the purpose is for causing damage, it must a fine not to
be damage to public interest; otherwise (private exceed
interest) the rime is estafa ₱40,000.00 –
3. Where a person takes the place of another concealment of
who has been convicted by final judgment, true name and
he is guilty of using a fictitious name other personal
punishable under this Article circumstances
4. The intent to publicly use the alias must be
manifest – that the user of the alias mut have
held himself be known under that other name
5. REPUBLIC ACT No. 6085 – laws regulating
the use of aliases
1. Wearing the uniform of an imaginary office is arresto mayor
not punishable
2. An exact imitation of a uniform or dress is
unnecessary, it is sufficient that there is a
colorful resemblance calculated to deceive the
common run of people or those who ere not
thoroughly familiar with every detail or
accessory thereof.
Other Laws
1. RA No. 75 (Sec. 3) – punishes the use of
uniform, decoration or regalia of a foreign State
2. RA No. 493 – punishes the wearing of
insignia, badge or emblem of rank of the
members of the Armed Forces or the
Constabulary
3. EO No. 297 – punishes illegal manufacturing,
sales, distribution and use of PNP uniforms,
insignia and other accoutrements.

Crime
False testimony against a
defendant
Art. 180. Any person who shall
give false testimony against the
defendant in any criminal case
shall suffer:
1. The penalty of reclusion
temporal, if the defendant in
said case shall have been
sentenced to death;
2. The penalty of prisión
mayor, if the defendant shall
have been sentenced to
reclusion temporal or reclusion
perpetua;
3. The penalty of prisión
correccional, if the defendant
shall have been sentenced to
any other afflictive penalty; and
4. The penalty of arresto
mayor, if the defendant shall
have been sentenced to a
correctional penalty or a fine,
or shall have been acquitted.
In cases provided in
subdivisions 3 and 4 of this
article the offender shall further
a fine not to exceed two
hundred thousand pesos
(₱200,000).
FALSE TESTIMONY
FAVORABLE TO THE
DEFENDANT
Art. 181. Any person who shall
give false testimony in favor of
the defendant in a criminal
case, shall suffer the penalties
of arresto mayor in its
maximum period of prisión
correccional in its minimum
period and a fine not to exceed
two hundred thousand pesos
(₱200,000), if the prosecution
is for a felony punishable by an
afflictive penalty, and the
penalty of arresto mayor in any
other case.
Section Two. — False testimony
Elements Important Points to Remember Penalty
1. That there be a False Testimony – committed by a person Penalty for false
criminal proceeding who, being under oath and required to testimony against the
testify as to the truth of a certain matter at defendant in a criminal
2. That the offender a hearing before a competent authority, case depends upon
testifies falsely under shall deny the truth or say something the sentence imposed on
oath against the contrary to it the person against
defendant therein whom the false testimony
Nature of Crime of False Testimony – was given
3. That the offender particularly odious when committed in
who gives false judicial proceedings, as it constitutes an 1.) reclusion temporal –
testimony knows that imposition upon the court and seriously defendant shall have been
it is false exposes it to a miscarriage of justice sentenced to death
2.) prisión mayor –
4. That the defendant Note: defendant shall have been
against whom the 1.Defendant must be sentenced at least to a sentenced to reclusion
false testimony is correctional penalty, or a fine, or must be temporal or reclusion
given is either acquitted; otherwise the crime is not perpetua
acquitted or committed. 3.) prisión correcciona
convicted in a final 2. The four cases uniformly presuppose a and fine not to exceed
judgment final judgement of conviction or acquittal ₱200,000.00 – defendant
in the basic case as a prerequisite to the shall have been sentenced
actionability of the crime of false to any other afflictive
testimony against the defendant. penalty
(False testimony is 3. Witness who gave false testimony is 4.) arresto mayor and fine
punished because of liable even if his testimony was not not to exceed
its tendency to favor considered by the court as the law intends ₱200,000.00 – defendant
or to prejudice the to punish the mere giving of false shall have been sentenced
defendant) testimony. to a correctional penalty
or a fine, or shall have
been acquitted.
1. That there be a Nature of the Crime – false testimony 1. arresto mayor in its
criminal proceeding favorable to the defendant is equally maximum period of
repugnant to the orderly administration of prisión correccional in its
2. That the offender justice minimum period and a
testifies falsely under fine not to exceed
oath against the 1. False testimony by negative statement is ₱200,000.00 – falsely
defendant therein in favor of defendant testifying in a criminal
2. The conviction or acquittal is not case in favor of the
3. That the offender necessary. It is sufficient that the defendant defendant
who gives false in the principal case is prosecuted for a
testimony knows that felony punishable by afflictive or other 2. arresto mayor in any
it is false penalty. other case – prosecution is
3. The false testimony favorable to the for a felony punishable by
defendant need not benefit the defendant. an afflictive penalty
It is sufficient that it was given with the
intent to favor the defendant.
4. The gravity of the crime for which the
defendant was prosecuted in the case

Crime
FALSE TESTIMONY
IN CIVIL CASES
Art. 182.  Any person
found guilty of false
testimony in a civil case
shall suffer the penalty of
prisión correccional in its
minimum period and a fine
not to exceed one million
two hundred thousand
pesos (₱1,200,000), if the
amount in controversy shall
exceed one million pesos
(₱1,000,000), and the
penalty of arresto mayor in
its maximum period to
prisión correccional in its
minimum period and a fine
not to exceed two hundred
thousand pesos (₱200,000),
if the amount in
controversy shall not
exceed said amount or
cannot be estimated.
FALSE TESTIMONY
IN OTHER CASES
AND PERJURY IN
SOLEMN
AFFIRMATION
Art. 183. The penalty of
arresto mayor in its
maximum period to
prision correccional in its
minimum period shall be
imposed upon any person,
who knowingly makes
untruthful statements and
not being included in the
provisions of the next
preceding articles, shall
testify under oath, or
make an affidavit, upon
any material matter before
a competent person
authorized to administer
an oath in cases in which
the law so requires.
Any person who, in case
of a solemn affirmation
made in lieu of an oath,
where the false testimony was given
should be shown in order to determine the
proper penalty to be imposed on the false
witness.
5. Rectification made spontaneously after
realizing the mistake is not false testimony
Elements Important Points to Remember Penalty
1. That the testimony Civil Action - an ordinary suit in court of justice by which Penalty depends on
must be given in a one party prosecutes another for the enforcement or amount of the
civil case protection of a right, or the prevention or redress of wrong Controversy
2. That the testimony Note: 1. prisión
must relate to the 1. Article 182 is not applicable when the false testimony is correccional in its
issues presented in given in special proceedings – every remedy is a special minimum period and
said case proceeding. a fine not to exceed
₱1,200,000.00 – the
3. That the testimony 2. The falsity of the testimony must first be established – amount in
must be false whether or not the testimonies of respondents in the civil controversy shall
case are false is prejudicial question – the civil case is so exceed
4. That the false intimately connected with the subject crime that it is ₱1,000,000.00
testimony must be determinative of the guilt or innocence of the respondents
given by the in the criminal case. Hence, pending the determination of 2. arresto mayor in
defendant the falsity of the subject testimonies of the respondents in its maximum period
knowing the same to the civil case, the criminal action for false testimony must to prisión
be false perforce be suspended. correccional in its
minimum period and
5. That the testimony a fine not to
must be malicious ₱200,000.00 – if the
and given with an amount in
intent to affect the controversy shall not
issues presented in exceed
said case ₱1,000,000.00 or
cannot be estimated
1. That the accused Perjury – an offense which covers false oaths other than arresto mayor in its
made a statement those taken in the course of judicial proceedings (an actual maximum period to
under oath or trial where a judgement of conviction or acquittal is prision correccional
executed an affidavit rendered) in its minimum
upon a material period
matter Subornation of Perjury – committed by a person who
knowingly and willfully procures another to swear falsely
2. That the statement and the witness suborned does testify under circumstances
or affidavit was made rendering him guilty
before a
competent officer, Oath – any form of attestation by which a person signifies
authorized to receive that he is bound in conscience to perform an act faithfully
and and truthfully
administer oath
Affidavit – sworn statement in writing; a declaration in
3. That in the writing, made upon oath before an authorized magistrate or
statement or affidavit, officer
the accused made a
willful and deliberate Material Matter – it is the main fact which is the subject
assertion of a of the inquiry or any circumstance which tends to prove
falsehood that fact, or any fact or circumstance which tends to
corroborate or strengthen the testimony relative to the
4 That the sworn subject of inquiry, or which legitimately affects the credit
statement or affidavit of any witness who testifies
containing the falsity
is required Competent Person Authorized to Administer Oath – a
(authorized) by law person who has a right to inquire into the questions
shall commit any of the
falsehoods mentioned in
this and the three
preceding articles of this
section, shall suffer the
respective penalties
provided therein.
OFFERING FALSE
TESTIMONY IN
EVIDENCE
Art. 184. Any person who
shall knowingly offer in
evidence a false witness
or testimony in any
judicial or official
proceeding, shall be
punished as guilty of false
testimony and shall suffer
the respective penalties
provided in this section.
presented him upon matters under his jurisdiction
Two ways of
Committing Perjury Note:
1. By falsely 1. False statement under oath and a false affidavit may be
testifying under oath made the basis of the charge of perjury.
2. By making a false
affidavit
2. There must be competent proof of materiality:
(a) Material – when it is directed to prove a fact in issue
(b) Relevant – when it tends in any reasonable degree to
establish the probability or improbability of a fact in issue
(c) Pertinent – when it concerns collateral matters which
make more or less probable the proposition at issue.
3. The true test of materiality is whether a false statement
can influence the tribunal and not on the probability of its
influence on the result of the trial.
4. If the false testimony given by the witness is not
important, essential or material to the principal matter
under investigation, it cannot properly be held that perjury
is committed.
3. The assertion of falsehood must be willful and deliberate
(knowingly making untruthful statements)
4. Even if there is no law, requiring the statement to be
made under oath, it is sufficient that the oath had been
administered with a view of carrying into effect a legal
purpose intended.
5. Two contradictory sworn statements are not sufficient to
convict of perjury. The prosecution must prove which of
the two statements is false and must show that statement to
be false by other evidence other than the contradictory
statement.
1. That the offender Offer of Evidence – begins the moment a witness is called Respective penalties
offered in evidence a to the witness stand and interrogated by counsel (the provided in this
false witness or false witness must testify) section
testimony
1. Art. 184 requires that a false witness or testimony
2. That he knew the consummate the offense – that the witness or the testimony
witness or the must be offered in evidence.
testimony was false
2. Art. 184 contemplates a case where a person, without
3. That the offer was inducing another, but knowing him to be a false witness,
made in a judicial or presented him and the latter testified falsely in a judicial or
official proceeding official proceeding.
3. Even if there was conspiracy between false witness and
party who presented him, the witness having desisted
before he could testify on any material matter, he is NOT
liable, because desistance during the attempted stage of
execution is an absolutory cause which exempts him from
criminal liability
4. The accused shall be punished as guilty of false
testimony and shall suffer the respective penalties provided
for false testimony and perjury.
CHAPTER THREE: FRAUDS
Section One. — Machinations, monopolies and combinations
Crime Elements
MACHINATIONS IN 1. By soliciting any gift or
PUBLIC AUCTIONS promise as a consideration
for refraining from taking
Art. 185. Any person part in any public auction
who shall solicit any gift (a) That there be a public
or promise as a auction
consideration for (b) That the accused solicited
refraining from taking any gift or promise from any
part in any public of the bidders
auction, and any person (c) That such gift or promise
who shall attempt to was the consideration for his
cause bidders to stay refraining from taking part in
away from an auction by that public auction
threats, gifts, promises, (d) That the accused had the
or any other artifice, intent to cause the reduction
with intent to cause the of the price of the thing
reduction of the price of auctioned
the thing auctioned, shall
suffer the penalty of 2. By attempting to cause
prision correccional in bidders to stay away from an
its minimum period and auction by threats, gifts,
a fine ranging from 10 to promises or any other artifice
50 per centum of the (a) That there be a public
value of the thing auction
auctioned. (b) That the accused
attempted to cause the
bidders to stay away from the
public auction (c) That is was
done by threats, gifts,
promises or any other artifice
(d) That the accused had the
intent to cause the reduction
of the price of the thing
auctioned
Important Points to Remember Penalty
Bid Manipulation (Big Rigging or Collusive prision correccional
Tendering) – occurs when business, that would in its minimum
otherwise be expected to compete, secretly period and a fine
conspire to raise prices or lower the quality of ranging from 10% to
goods or services for purchases who wish to 50% of the value of
acquire products or services through a bidding the thing auctioned
Reason for the Provision – execution sales
should be opened to free and full competition
in order to secure the maximum benefit for the
debtors
Common Bid Manipulation Practices
1. Bid Cover – occurs when individuals or
firms agree to submit bids that involve at least
one of the following:
(a) a competitor agrees to submit a bid that is
higher than the bid of the designated winner
(b) a competitor submits a bid that is known
to be too high to be accepted
(c) a competitor submits a bid that contains
special terms that are known to be unacceptable
to the purchase
2. Bid Suppression – involves agreements
among competitors in which one or more
companies agree to refrain from bidding or to
withdraw a previously submitted bid so that the
designated winner’s bid will be accepted
3. Bid Rotation – conspiring firms continue to
bid but they agree to take turns being the
winning bidder.
4. Market Allocation – competitors carve up
the market and agree not to compete for certain
customers or in certain geographic areas.
Note:
1. Crime is consummated by mere solicitation
of gift or promise as consideration for not
bidding.
2. “Other artifice” includes the use of trickery
3. An attempt to cause prospective bidders to
stay away from an auction by means of threats,
gifts, etc, with the intent that the thing
auctioned should command a lesser price, is
sufficient to constitute an offense
4. The threat need not be effective nor the offer
or gift accepted for the crime to arise
5. The Philippine Competition Act prohibits
fixing pries at an auction or in any form of
bidding – an agreement between or among

Crime
MONOPOLIES AND COMBINATIONS
IN RESTRAINT OF TRADE
Art. 186. The penalty of prision
correccional in its minimum period or a fine
ranging from 200 to 6,000 pesos, or both,
shall be imposed upon:
1. Any person who shall enter into any
contract or agreement or shall take part in
any conspiracy or combination in the form of
a trust or otherwise, in restraint of trade or
commerce or to prevent by artificial means
free competition in the market;
2. Any person who shall monopolize any
merchandise or object of trade or commerce,
or shall combine with any other person or
persons to monopolize and merchandise or
object in order to alter the price thereof by
spreading false rumors or making use of any
other article to restrain free competition in
the market;
3. Any person who, being a manufacturer,
producer, or processor of any merchandise or
object of commerce or an importer of any
merchandise or object of commerce from any
foreign country, either as principal or agent,
wholesaler or retailer, shall combine,
conspire or agree in any manner with any
person likewise engaged in the manufacture,
production, processing, assembling or
importation of such merchandise or object of
commerce or with any other persons not so
similarly engaged for the purpose of making
transactions prejudicial to lawful commerce,
or of increasing the market price in any part
of the Philippines, of any such merchandise
or object of commerce manufactured,
produced, processed, assembled in or
imported into the Philippines, or of any
article in the manufacture of which such
manufactured, produced, or imported
merchandise or object of commerce is used.
If the offense mentioned in this article
affects any food substance, motor fuel or
lubricants, or other articles of prime
necessity, the penalty shall be that of prision
mayor in its maximum and medium periods
it being sufficient for the imposition thereof
that the initial steps have been taken toward
carrying out the purposes of the combination.
Any property possessed under any
contract or by any combination mentioned in
the preceding paragraphs, and being the
subject thereof, shall be forfeited to the
Government of the Philippines.
Whenever any of the offenses
competitors fixing prices at an auction or in any
form of bidding, including cover bidding, bid
suppression, bid rotation and market allocation
and other analogous practices of bid
manipulation are per se prohibited.
Elements
Acts Punished as Monopolies:
1. Combination to prevent free
competition in the market
– by entering into any contract
or agreement or taking part in any
conspiracy or combination in the
form of a trust or otherwise, in
restraint of trade or commerce or to
prevent by artificial means free
competition in the market
2. Monopoly to restrain free
competition in the market by:
(a) monopolizing any
merchandise or object of trade or
commerce
(b) combining with any other
person(s) to monopolize said
merchandise or object in order to
alter the prices thereof by
spreading false rumors or making
use of any other artifice to restrain
free competition in the market
3. Manufacturer, producer, or
processor or importer combining,
conspiring or agreeing with any
person to make transactions
prejudicial to lawful commerce or
to increase the market price of
merchandise
(a) Person Liable – manufacturer,
producer, processor, or importer of
any merchandise or object of
commerce
(b) Crime Committed by –
combining, conspiring, or agreeing
with any person
(c) Purpose – to make transactions
prejudicial to lawful commerce, or
to increase the market price of any
merchandise or object of
commerce manufactured,
produced, processed, assembled or
imported into the Philippines
Important Points to Remember Penalty
1. The theory in penalizing prision
monopolies and combinations in correccional in
restraint of trade is that competition, its minimum
not combination, should be the law period or a fine
of trade ranging from
₱200.00 to
2. Any property possessed under any ₱6,000.00, or
contract or combination both
contemplated in this article, shall be
forfeited to the Government
prision mayor in
3. The law intends to punish the its maximum
mere conspiracy or combination at and medium
which it is aimed periods – if the
offense affects
4. If the offense affects any food any food
substance, motor fuel or lubricants or substance, motor
fuel or
other article of prime necessity, it is
lubricants, or
sufficient for the imposition of the
other articles of
higher penalty that the initial steps prime necessity
have been taken toward carrying out
the purposes of combination
5. When the offense is committed by
a corporation or association, the
president and directors or managers
are liable as principals thereof;
– but the president and directors
or managers are only liable if they:
(a) knowingly permitted
(b) failed to prevent the commission
of such offense
[Article 186 has been repealed by
Rep. Act No. 10667 or the Philippine
Competition Act (July 2,2014)]
Note: Violations of Art. 186 prior to
effectivity of PCA may continue to
be prosecuted unless the same has
been barred by prescription, etc.
described above is committed by a
corporation or association, the president and
each one of its agents or representatives in
the Philippines in case of a foreign
corporation or association, who shall have
knowingly permitted or failed to prevent the
commission of such offense, shall be held
liable as principals thereof.

Section Two. — Frauds in commerce and industry

Crime Elements Important Points to Remember Penalty

IMPORTATION AND 1. That the offender imports, sells, or 1. Articles of merchandise involved: gold, prisión
DISPOSITION OF disposes of any of those articles or silver, other precious metals, or their alloys. correccional or a
FALSELY MARKED merchandise fine ranging from
ARTICLES OR 2. Selling the misbranded articles is not ₱40,000.00 to
MERCHANDISE MADE 2. The stamps, brands, or marks of necessary, but there must be evidence showing ₱200,000.00, or
OF GOLD, SILVER, OR those articles of merchandise fail to that the articles were imported (e.g. possession both
OTHER PRECIOUS indicate the actual fineness or quality thereof after importing)
METALS OR THEIR of said metals or alloys
ALLOYS 3. Article 187 does not apply to manufacturer of
3. The offender knows that stamps, misbranded articles made of gold, silver, etc.
Art. 187. The penalty of brands, or marks fail to indicate the
prisión correccional or a actual fineness or quality of the metals 4. The manufacturer who alters the quality
fine ranging from forty or alloys or fineness of anything pertaining to his art
thousand pesos (₱40,000) to
two hundred thousand pesos
or business is liable for estafa.
(₱200,000), or both, shall be
imposed upon any person
who shall knowingly import
or sell or dispose of any
article or merchandise made
of gold, silver, or other
precious metals, or their
alloys, with stamps, brands,
or marks which fail to
indicate the actual fineness
or quality of said metals or
alloys.
Any stamp, brand
label, or mark shall be
deemed to fail to indicate the
actual fineness of the article
on which it is engraved,
printed, stamped, labeled or
attached, when the test of the
article shows that the quality
or fineness thereof is less by
more than one-half karat, if
made of gold, and less by
more than four one-
thousandth, if made of silver,
than what is shown by said
stamp, brand, label or mark.
But in case of watch cases
and flatware made of gold,
the actual fineness of such
gold shall not be less than
more than three one-
thousandth than the fineness
indicated by said stamp,
brand, label, or mark.
 Crime Elements Important Points to Remember Penalty

SUBSISTING AND ALTERING Acts Punishable: Trade Name – name or designation identifying prision
TRADE-MARK, TRADE-NAMES, 1. By substituting or distinguishing an enterprise correccional in its
OR SERVICE MARKS the trade name or minimum period or
trademark of some a fine ranging from
Trade Name Distinguished from Trademark
other manufacturer 50 to 2,000 pesos,
Art. 188. The penalty of prision 1. Trade name is used in trade to designate a or both
or dealer, or a
correccional in its minimum period or colorable imitation
particular business of certain individuals
a fine ranging from 50 to 2,000 pesos, thereof, for the trade considered as an entity; trademark is used to
or both, shall be imposed upon: name or trademark indicate the origin or ownership of the goods to
1. Any person who shall substitute the of the real which it is affixed
trade name or trade-mark of some manufacturer or
other manufacturer or dealer or a dealer upon any 2. Trade name, unlike trademarks, are not
colorable imitation thereof, for the article of commerce necessarily attached or affixed to the goods of
trademark of the real manufacturer or and selling the same the owner
dealer upon any article of commerce
2. By selling or by
and shall sell the same; offering for sale Note:
2. Any person who shall sell such such articles of 1. The trade name, etc. used by the offender
articles of commerce or offer the same commerce, knowing need not be identical with the infringed trade
for sale, knowing that the trade-name that the trade name name, etc of the offended party; a colorable
or trade- mark has been fraudulently or trademark has imitation is sufficient
used in such goods as described in the been fraudulently
preceding subdivision; used 2. There must not be differences which are
3. Any person who, in the sale or glaring and striking to the eye
3. By using or
advertising of his services, shall use or substituting the
substitute the service mark of some service mark or 3. Mark – any visible sign capable of
other person, or a colorable imitation some other person, distinguishing the foods (trademark) or
of such mark; or or a colorable service (service mark) of an enterprise and
4. Any person who, knowing the imitation of such shall include a stamped or marked container
purpose for which the trade-name, mark, in the sale or
trade-mark, or service mark of a advertising of his 4. The trademark’s function is to indicate the
person is to be used, prints, services origin or ownership of the goods to which it
lithographs, or in any way reproduces is fixed
4. By printing,
such trade-name, trade-mark, or lithographing, or
service mark, or a colorable imitation reproducing trade 5. The objects of trademark are to point out
thereof, for another person, to enable name, trademark, or distinctly the origin or ownership of the
that other person to fraudulently use service mark of one article to which it is affixed, to secure to
such trade-name, trade-mark, or person, or a him, who has been instrumental in brining
service mark on his own goods or in colorable imitation into market a superior article of
connection with the sale or advertising thereof, to enable merchandise, the fruit of his industry and
of his services. another person to skill, and to prevent fraud and imposition
fraudulently use the
A trade-name or trade-mark as 6. It is not necessary that the goods of the
same, knowing the
herein used is a word or words, name, fraudulent purpose prior user and the late user of the trademark
title, symbol, emblem, sign or device, for which it is to be are of the same categories
or any combination thereof used as an used
advertisement, sign, label, poster, or 7. The trade name or trademark must be
otherwise, for the purpose of enabling Registered
the public to distinguish the business
of the person who owns and uses said 8. Trademark must not be merely descriptive or
trade-name or trade-mark. Generic
A service mark as herein used is a
mark used in the sale or advertising of 9. The exclusive right to an originally valid
services to identify the services of one trademark or trade name is lost, if for some
person and distinguish them from the reason it loses its distinctiveness or has become
services of others and includes “publici juris”
without limitation the marks, names,
symbols, titles, designations, slogans,
character names, and distinctive
features of radio or other advertising.
Crime
UNFAIR COMPETITION,
FRAUDULENT
REGISTRATION OF
TRADE-MARK, TRADE-
NAME OR SERVICE MARK,
FRAUDULENT
DESIGNATION OF ORIGIN,
AND FALSE DESCRIPTION
Art. 189. The penalty provided
in the next proceeding article
shall be imposed upon:
1. Any person who, in unfair
competition and for the purposes
of deceiving or defrauding
another of his legitimate trade or
the public in general, shall sell
his goods giving 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 device or
words thereon or in any other
features of their appearance
which would be likely to induce
the public to believe that the
goods offered are those of a
manufacturer or dealer other
than the actual manufacturer or
dealer or shall give other persons
a chance or opportunity to do the
same with a like purpose.
2. Any person who shall affix,
apply, annex or use in
connection with any goods or
services or any container or
containers for goods a false
designation of origin or any false
description or representation and
shall sell such goods or services.
3. Any person who by means of
false or fraudulent representation
or declarations orally or in
writing or by other fraudulent
means shall procure from the
patent office or from any other
office which may hereafter be
established by law for the
purposes the registration of a
Elements
Acts Punished:
1. By selling his goods, giving them
the general appearance of the goods
of another manufacturer or dealer
(Unfair Competition)
a. That the offender gives his
goods the general appearance of the
goods of another manufacturer or
dealer
b. That the general appearance is
shown in the (a) goods themselves,
or in the (b) wrapping of their
packages, or in the (c) device or
words therein, or (d) any other
feature of their appearance
c. That the offender offers to
sell(s) those goods or gives other
persons a chance or opportunity to
do the same with a like purpose
d. That there is actual intent to
deceive public or defraud a
competitor
2. By (a) affixing to his goods or
using in connection with his
services a false designation of
origin, or any false description or
representation, and (b) by selling
such goods and services
3. By procuring fraudulently from
the patent office the
registration of trade name,
trademark, or service mark
Smuggling or Illegal Importation:
- requisites:
1. that the merchandise must have
been fraudulently or
knowingly imported contrary to law
2. that the defendant, if he is not the
importer himself, must have
received, concealed, bought, sold or
in any manner facilitated the
transportation, concealment or sale
of the merchandise
3. that the defendant must be shown
to have knowledge that the
merchandise had been illegally
imported containers is regulated
Important Points to Remember Penalty
1. Mere offer for sale completes the Penalty
commission of the crime provided for
in the next
2. Evidence of actual fraudulent intent preceding
is not necessary article
3. The basis for penalizing unfair
competition is that no one shall, by
imitating or any unfair device, induce
the public to believe that the goods he
offers for sale are the goods of another,
and thereby appropriate to himself the
value of the reputation which the other
has acquired for the products or
merchandise manufactured or sold by
him
4. The true test of unfair competition is
whether certain goods have clothed
with an appearance which is likely to
deceive
ordinary purchaser exercising ordinary
care, and not whether a certain limited
class of purchaser with special
knowledge not possessed by the
ordinary purchaser could avoid mistake
by the exercise of this special
knowledge
5. Master is liable for acts of servant
6. Infringement of Trademark or
Tradename distinguished from Unfair
Competition
a. UC is broader and more inclusive
b. In UC, the offended party has
identified in the mind of the public the
goods he manufactures or deals in from
those of others; while in infringement,
the
offended party has identified a peculiar
symbol/mark with his goods and
thereby
has acquired a property right in such
symbol/mark
c. In UC, the offender gives his
goods the general appearance of the
goods of
another manufacturer / dealer and sells
the same; while in infringement, the
offender uses the trademark or
tradename of another manufacturer or
dealer and sells his goods on which the
trade-name, trade-mark or trademark is affixed
service mark or of himself as the
owner of such trade-name, trade- 7. The use of duly stamped or marked
mark or service mark or an entry
respecting a trade-name, trade-
mark or service mark.