RFBT 04 26 IPL and Other Special Laws - Supplemental Notes

No. 125 Brgy.
San Sebastian
Lipa City, Batangas, Philippines
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Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com
Regulatory Framework for Business Transactions
Laws On Other Business Transactions (Intellectual Property Law, Data Privacy Law, Electronic
Commerce Act, and Other Special Concerns) – Supplemental Notes
Effectivity: January 1, 1998
Intellectual property:
1. Copyright and related rights
2. Trademark and service marks
3. Patents
4. Geographical indications
5. Layout designs (topographies) of integrated
circuits
6. Protection of undisclosed information
7. Industrial designs: any composition of lines or
colors 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
Technology transfer arrangements: contracts or

agreements involving the transfer of systematic
knowledge for the manufacture of a product, the
application of a process, rendering of a service including
management contracts; and the transfer, assignment of
licensing of all forms of intellectual property rights,
including licensing of computer software except
computer software developed for mass market
Copyright Patent Trademark

New, useful
Literary, Goods
Subject matter and industrially
scientific or manufactured
of the right applicable
artistic work or produced
inventions
Where right is National
IPO IPO
to be registered Library
Generally 50 20 years from 10 years from
Duration of years after the filing date issuance of
right death of the of the certificate of
author application registration
International Conventions and Reciprocity (Section 3 of

RA8293): Any person who is 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 intellectual
property rights or the repression of unfair competition, to
which the Philippines is also a party, or extends
reciprocal rights to nationals of the Philippines by law,
shall be entitled to benefits to the extent necessary to
give effect to any provision of such convention, treaty, or
reciprocal law, in addition to the rights to which any
owner of an intellectual property right is otherwise
entitled under the law.
1|P a g e RLACO/DS ALES/NV ALDER AMA

No. 125 Brgy. San Sebastian
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PATENTS
Patentable Inventions: any technical solution of a

problem in any field of human activity which is new,
involves an inventive step and is industrially applicable;
may be or may relate to, a product, a process, or an
improvement of any of the foregoing
Requisites:
1. A technical solution of a problem in any field of
human activity
2. It must be a novel invention
3. Industrially applicable (can be produced and
used in any industry)
Classes of patentable inventions:

1. Useful machine
2. Product
3. Process
4. Improvement of (1), (2) or (3)
5. Micro-organism
6. Non-biological and microbiological process
Non-patentable inventions:
1. Discoveries, scientific theories and mathematical
method
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 body or
animal body by surgery or therapy and
diagnostic methods practiced on the human or
animal body
4. Plant varieties or animal breeds of essentially
biological process for the production of plants or
animals
5. Aesthetic creations
6. Anything which is contrary to public order or
morality
7. In the case of drugs and medicines:
a. Mere discovery of a new form or new
property of a known substance which
does not result in the enhancement of
the known efficacy of that substance
b. Mere discovery of any new property or
new use for a known substance
c. Mere use of a known process unless
such known process results in a new
product that employs at least one new
reactant
Novelty (Section 23 of RA8293): An invention shall not

be considered new if it forms part of a prior art.
Prior Art:
1. 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; and
2. The whole contents of an application for a
patent, utility model, or industrial design
registration, published in accordance with law,
filed or effective in the Philippines, which a filing
or priority date that is earlier than the filing or
priority date of the application

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Non-prejudicial Disclosure: The disclosure of information

contained in the application during the 12 months
preceding the filing date or the priority date of the
application shall not prejudice the applicant on the
ground of novelty if such disclosure was made by:
1. The inventor;
2. A patent office and the information was
contained (a) in another application filed by the
inventor and should not have been disclosed by
the office, or (b) in an application filed without
the knowledge or consent of the inventor by a
third party which obtained the information
directly or indirectly from the inventor; or
3. The third party which obtained the information
directly or indirectly from the inventor.
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
Right to a patent: belongs to the inventor, his heirs or

assigns; when 2 or more persons have jointly made an
invention, said right shall belong to them jointly
First-to-File Rule: If two or more persons have made the

invention separately and independently of each other the
right to the patent shall belong to the person who first
filed an application for such invention.
Inventions created pursuant to a commission:
1. The person who commissions the work shall
own the patent, unless otherwise provided in the
contract.
2. In case the employee made the invention in the
course of his employment contract, the patent
shall belong to:
a. The employee, if the inventive activity is
not part of his regular duties even if the
employee uses the time, facilities and
materials of the employer
b. The employer, if the invention is a result
of the performance of his regularly-
assigned duties, unless there is an
agreement, express or implied, to the
contrary
Right of Priority: An application for patent filed by any

person who has previously applied for the same
invention in another country which by treaty, convention
or law affords similar privileges to Filipino citizens, shall
be considered as filed as of the date of filing the foreign
application: provided that:
1. A local application expressly claims priority
2. It is filed within 12 months from the date the
earliest foreign application was filed
3. A certified copy of the foreign application
together with an English translation is filed within
6 months from the date of filing in the Philippines
Priority Date: the date of filing of the foreign application

for the same invention

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Contents of Patent Application (in Filipino or English):

1. A request for the grant of a patent;
2. A description of the invention (sufficiently clear
and complete for it to be carried out by a person
skilled in the art);
3. Drawings necessary for the understanding of the
invention;
4. One or more claims (define the matter for which
protection is sought; clear and concise); and
5. An abstract (concise summary of the disclosure
of the invention as contained in the description,
claims, and drawings in preferably not more than
150 words)
Note: Inventor must always be identified. Any authorized
person may file an application for the inventor. Before
publication, no application may inspected without the
consent of the applicant.
Unity of Invention: An application shall relate to one

invention only or to a group of inventions forming a
single general inventive concept.
Note: Violation is not a ground to cancel the patent.
Publication of Patent Application:

1. The application shall be published in the IPO
Gazette together with a search document
(determining a prior art) after the expiration of 18
months from the filing date or priority date.
2. After publication, any interested party may
inspect the application documents.
3. The Director General, subject to the approval of
DTI Secretary, may prohibit or restrict the
publication of an application, if in his opinion, to
do so would be prejudicial to the national
security and interests of the Republic of the
Philippines.
4. After publication, the applicant shall have all the
rights of a patentee against any person who,
without authorization, exercised any of the rights
conferred under the law in relation to the
invention claimed in the published application,
as if a patent had been granted for that
invention, provided that said person had:
a. Actual knowledge that the invention that
he was using was the subject matter of
a published application; or
b. Received written notice that the
invention he was using was the subject
matter of a published application being
identified in the said notice by its serial
number. (Note: No action may be filed
however until the grant of a patent and
only within 4 years from commission of
the acts complained of.)
Substantive Examination: Within 6 months from date of

publication, a written request for examination must be
submitted and fees must be paid; otherwise, the
application shall be deemed withdrawn. Any withdrawal
of the request for examination shall be irrevocable and
shall not authorize the refund of any fee.
Grant of Patent:

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1. If the application meets the requirements, IPO

shall grant the patent, provided all fees are paid
on time.
2. If fees are not paid in due time, the application
shall be deemed to be withdrawn.
3. Effectivity: on the date of the publication of the
patent in the IPO Gazette.
4. In case of refusal, the final order shall be
appealable to the Director.
Grounds for cancellation of a patent:

1. What is claimed as the invention is not new or
patentable
2. 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
3. The patent is contrary to public order or morality
Committee of Three: composed of the Director of Legal

Affairs as chairman and 2 members who have the
experience or expertise in the field of technology to
which the patent sought to be cancelled relates, in cases
involving highly technical issues; decision shall be
appealable to the Director General
Effect of Cancellation of Patent:

1. Notice of cancellation shall be published in the
IPO Gazette.
2. Rights conferred shall terminate.
3. Unless restrained by the Director General, the
decision shall be immediately executory even
pending appeal.
Remedies of the true and actual inventor: If a person,

who was deprived of the patent without his consent or
through fraud is declared by final court order or decision
to be the true and actual inventor, the court shall order
for his substitution as patentee, or at the option of the
true inventor, cancel the patent and award actual and
other damages in his favor if warranted by the
circumstances.
Note: This may be availed within one year from the date
of publication
Rights conferred by a grant: A patent shall confer on its

owner the following exclusive rights:
1. Where the subject matter of a patent is a
product, to restrain, prohibit and prevent any
unauthorized person or entity from making,
using, offering for sale, selling or importing that
product.
2. Where the subject matter of a patent is a
process, to restrain, prevent or prohibit any
unauthorized person or entity from using the
process and from manufacturing, dealing in,
using, selling or offering for sale, or importing
any product obtained directly or indirectly from
such process
Patent owners shall also have the right to assign, or
transfer by succession the patent and to conclude
licensing contracts for the same.
Limitation of patent rights: The owner of a patent has no

right to prevent third parties from performing, without his

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authorization, the acts within his rights in the following

circumstances:
1. Using a patented product which has been put on
the market in the Philippines by the owner of the
product, or with express consent, in so far as
such use is performed after the product has
been so put on the said market
2. Where the act is done privately and on a non-
commercial scale or for a non-commercial
purpose, provided, that it does not significantly
prejudice the economic interests of the owner of
the patent
3. Where the act consists of making or using
exclusively for the purpose of experiments that
relate to the subject matter of the patented
invention
4. Where the act consists of the preparation for
individual cases, in a pharmacy or by a medical
professional in accordance with a medical
prescription or acts concerning the medicine so
prepared
5. Where the invention is used in any ship, vessel,
aircraft or land vehicle of any other country
entering the territory of the Philippines
temporarily or accidentally, provided, that such
invention is used exclusively for the needs of the
ship, vessel, aircraft or land vehicle and not
used for the manufacturing of anything to be
sold within the Philippines
Prior User: Any prior user, who, in good faith was using
the invention or has undertaken serious preparations to
use the invention in his enterprise or business, before
the filing date or priority date of the application on which
a patent is granted, shall have the right to continue the
use thereof as envisaged in such preparations within the
territory where the patent produces its effect. The right
of the prior user may only be transferred or assigned
together with his enterprise or business, or with that part
of his enterprise or business in which the use or
preparations for use have been made.
Use by the Government: A government agency or third

person authorized by the Government may exploit the
invention even without agreement of the patent owner
where:
1. The public interest, in particular, national
security, nutrition, health or the development of
other sectors, as determined by the appropriate
agency of the government, so requires
2. A judicial or administrative body has determined
that the manner of exploitation, by the owner of
the patent or his licensee, is anti-competitive
Patent Infringement: 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
Literal Infringement: if one makes, uses or sells an item
that contains all elements of the patent claim. This test
is satisfied in either of the following:
1. Exactness rule: the item that is being sold, made
or used conforms exactly to the patent claim of
another

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2. Addition rule: one makes, uses or sells an item

that has all the elements of the patent claim of
another plus other elements
Doctrine of Equivalents: An infringement also takes

place when a device appropriates a prior invention by
incorporating its innovative concept and, although with
some modification and change, performs substantially
the same function in substantially the same way to
achieve substantially the same result.
Civil action: to recover from the infringer such damages

(actual damages not exceeding 3 times of damages
sustained) sustained thereby, plus attorney’s fees and
other expenses of litigation, and to secure an injunction
for the protection of his rights
Criminal action: imprisonment for a period not less than

6 months but not more than 3 years and/or a fine of not
less than P100,000.00 but not more than P300,000.00.
Prescription: 3 years from the date of commission of the

crime (repetition of infringement)
Note: Under Section 79 of RA8293, no damages can be
recovered for acts of infringement committed more than
4 years before the institution of the action for
infringement.
Defenses in action for infringement: In addition to other

defenses available to him, he may show the invalidity of
the patent or any claim thereof on any of the grounds for
cancellation of a patent.
Voluntary Licensing: To encourage the transfer and

dissemination of technology, prevent or control practices
and conditions that may in particular cases constitute an
abuse of intellectual property rights having an adverse
effect on competition and trade, all technology transfer
arrangements shall comply with the provisions of the IP
Code.
Mandatory provisions:
1. That the laws of the Philippines shall govern the
interpretation of the same and in the event of
litigation, the venue shall be the proper court in
the place where the licensee has its principal
office;
2. Continued access to improvements in
techniques and processes related to the
technology shall be made available during the
period of the technology transfer arrangement;
3. In the event the technology transfer
arrangement shall provide for arbitration, the
Procedure of Arbitration of the Arbitration Law of
the Philippines or the Arbitration Rules of the
United Nations Commission on International
Trade Law (UNCITRAL) or the Rules of
Conciliation and Arbitration of the International
Chamber of Commerce (ICC) shall apply and
the venue of arbitration shall be the Philippines
or any neutral country; and

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4. The Philippine taxes on all payments relating to

the technology transfer arrangement shall be
borne by the licensor.
Compulsory Licensing: issuance of a license by the

Director General of the IPO to exploit a patented
invention without the permission of the patent holder,
either by manufacture or through parallel importation
Grounds:
1. National emergency or other circumstances of
extreme urgency
2. 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
3. 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
4. In case of public non-commercial use of the
patent by the patentee, without satisfactory
reason
5. If the patented invention is not being worked in
the Philippines on a commercial scale, although
capable of being worked, without satisfactory
reason, provided, that the importation of the
patented article shall constitute working or using
the patent
6. Where the demand for patented drugs and
medicines is not being met to an adequate
extent and on reasonable terms, as determined
by the Secretary of DOH
Assignment of inventions: An assignment may be of the

entire right, title or interest in and to the patent and the
invention covered thereby, or of an undivided share of
the entire patent and invention, in which event the
parties become joint owners thereof. An assignment
may be limited to a specified territory. It must be in
writing, acknowledged before a notary public or other
officer authorized to administer oath or perform notarial
acts, and certified under the hand and official seal of the
notary or such other officer.
TRADEMARKS
Mark: any visible sign capable of distinguishing the

goods (trademark) or services (service mark) of an
enterprise
Requirements:
1. Visible sign
2. Capable of distinguishing the goods of an
enterprise
Collective mark: 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
Trade name: name or designation identifying or

distinguishing an enterprise

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How acquired: The rights in a mark shall be acquired

through registration (from the filing date of application)
with the IPO.
Non-registrable marks:
1. Immoral, deceptive or scandalous matter or
matter which may disparage or falsely suggest a
connection with persons living or dead,
institutions, beliefs or national symbols or bring
them into contempt or disrepute
2. Consists of the flag or coat of arms or other
insignia of the Philippines or any of its political
subdivisions, or of any foreign nation, or any
simulation thereof
3. Consists of a name, portrait or signature
identifying a particular living individual except by
his written consent, or the name, signature or
portrait of a deceased President of the
Philippines, during the life of his widow, if any,
except by written consent of the widow
4. Identical with a registered mark belonging to a
different proprietor or a mark with an earlier filing
or priority date, in respect of:
a. The same goods or services
b. Closely related goods or services
c. If it nearly resembles such a mark as to
be likely to deceive or cause confusion
5. Identical with, or confusingly similar to, or
constitutes a translation if a mark which is
considered by the competent authority of the
Philippines to be well-known internationally and
in the Philippines, whether or not it is registered
here
6. Identical with, or confusingly similar to, or
constitutes a translation of a mark considered
well-known, which is registered in the
Philippines with respect to goods or services
which are not similar to those with respect to
which registration is applied for
7. Likely to mislead the public, particularly as to the
nature, quality, characteristics, or geographical
origin of the goods or services
8. Generic terms for goods or services
9. Descriptive marks
10. Customary sign in everyday language
11. Color by itself
12. Shapes
13. Contrary to public order or morality
Contents of Trademark Application: (in Filipino or

English)
1. A request for registration
2. Name and address of the applicant
3. Name of a State of which the applicant is a
national or where he has domicile, and the name
of a State in which the applicant has a real and
effective industrial or commercial establishment,
if any
4. If applicant is a juridical entity, the law under
which it is organized and existing
5. Appointment of an agent or representative, if the
applicant is not domiciled in the Philippines
6. If applicant claims priority of an earlier
application:

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a. The name of the State with whose

national office the earlier application
was filed,
b. The date of which the earlier application
was filed, and
c. Application number of the earlier
application, if available.
7. If applicant claims color as a distinctive feature
of the mark, a statement to that effect as well as
the name or names of the color or colors
claimed and an indication, in respect of each
color, of the principal parts of the mark which are
in that color
8. If the mark is a three-dimensional mark, a
statement to that effect
9. One or more reproductions of the mark
10. A transliteration or translation of the mark or of
some parts of the mark
11. The names of the goods or services for which
the registration is sought
12. A signature by, or other self-identification of, the
applicant or his representative
Note: One application may relate to several goods
and/or services, whether they belong to one class or to
several classes of the Nice Classification.
Prior Use: not required before registration, however,

there must be actual use after registration
Declaration of Actual Use: must be filed within 3 years

from the filing date of application; otherwise, application
shall be refused or the mark shall be removed from the
Register; after certificate of registration is issued,
declaration must be filed within one year from the 5th
anniversary of the date of registration
Division of Application: Any application referring to

several goods or services (initial application) may be
divided by the applicant into 2 or more applications
(divisional applications), by distributing among the latter
the goods or services referred to in the initial application.
Note: The divisional applications shall preserve the filing
date of the initial application or the benefit of the right of
priority.
Issuance and Publication of Certificate: When the period

for filing opposition has expired, or when the Director of
Legal Affairs shall have denied the opposition, the IPO
upon payment of the required fee, shall issue the
certificate of registration. Upon issuance of said
certificate, notice thereof making reference to the
publication of the application shall be published in the
IPO Gazette.
Certificate of Registration: prima facie evidence of the

validity of the registration, the registrant’s ownership of
the mark, and of the registrant’s exclusive right use the
same in connection with the goods or services and those
that are related thereto specified in the certificate; may
be renewed for periods of 10 years upon payment of
prescribed fee and filing of request
Tests:
10 | P a g e RLACO/DS ALES/NV ALDER AMA

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1. Dominancy Test: focuses on the similarity of the

prevalent features of the competing trademarks
which might cause confusion or deception, and
thus infringement; question: whether the use of
the marks involved is likely to cause confusion
or mistake in the mind of the public or deceive
purchasers
2. Holistic Test: requires that the entirety of the
marks in question be considered in resolving
confusing similarity
Well-known Mark: which is determined by competent

authority (competent courts or Bureau of Legal Affairs of
IPO) to be well-known internationally and in the
Philippines, whether or not it is registered in the
Philippines, as being already owned by someone taking
into account the knowledge of the relevant sector in the
Philippines which has been obtained as a result of the
promotion of the mark
Rights conferred by registration:

1. The owner of a registered mark shall have the
exclusive right to prevent all third parties not
having the owner’s consent from using in the
course of trade identical or similar signs or
containers for goods or services which are
identical or similar to those in respect of which
the trademark is registered where such use
would result in a likelihood of confusion.
2. The exclusive right of the owner of a well-known
mark which is registered in the Philippines, shall
extend to goods and services which are not
similar to those in respect of which the mark is
registered: provided, that the use of that mark in
relation to those goods or services would
indicate a connection between those goods or
services and the owner of the registered mark:
provided further, that the interests of the owner
of the registered mark are likely to be damaged
by such use.
Use by third parties: Registration of the mark shall not

confer on the registered owner the right to preclude third
parties from using bona fide their names, addresses,
pseudonyms, a geographical name or exact indications
concerning the kind, quality, quantity, destination, value,
place of origin or time of production or of supply, of their
goods or services: provided, that such use is confined to
the purposes of mere identification or information and
cannot mislead the public as to the source of the goods
or services.
Assignment of Application and Registration: allowed with

or without the transfer of the business using the mark;
no effect against third parties until recorded at the IPO
Cancellation of Registration: Any person who believes

that he is or will be damaged by the registration may file
with the Bureau of Legal Affairs:
1. Within 5 years from the date of registration;
2. At any time,
a. if the registered mark becomes the
generic name for the goods or services,
or a portion thereof, for which it is
registered, or

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b. has been abandoned, or

c. its registration was obtained fraudulently
or contrary to law, or
d. if the registered mark is being used by,
or with the permission of, the registrant
so as to misrepresent the source of
goods or services on or in connection
with which the mark is used, or
e. if the registered owner of the mark
without any legitimate reason fails to use
the mark within the Philippines, or to
cause it to be used in the Philippines by
virtue of a license during an
uninterrupted period of 3 years or longer
Non-use: may be excused if caused by circumstances

arising independently of the will of the trademark owner;
lack of funds shall not excuse non-use
Misuse: if it does not alter its distinctive character, it is

not a ground for cancellation
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 of a dominant feature
thereof in connection with the sale, offering for
sale, distribution, advertising of any goods or
services including other preparatory steps
necessary to carry out the sale of any goods or
services on or in connection with which such use
is likely to cause confusion, or to cause mistake,
or to deceive
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, wrappers, receptacles or
advertisements intended to be used in
commerce upon or in connection with the sale,
offering for sale, distribution, or advertising of
goods or services on or in connection with which
such use is likely to cause confusion, or to
cause mistake, or to deceive
Remedies:
1. Damages: reasonable profit (doubled if there is
actual intent to mislead or defraud)
2. Impoundment of sales invoices and other
documents evidencing sales
3. Injunction
4. Destruction of infringing material
5. Criminal action
Requirement of notice: In any suit for infringement, the
owner of the registered mark shall not be entitled to
recover profits or damages unless the acts have been
committed with knowledge that such imitation is likely to
cause confusion, or to cause mistake, or to deceive.
Such knowledge is presumed if the registrant gives
notice that his mark is registered by displaying with the
mark the words “Registered Mark” or ® or if the
defendant had otherwise actual notice of the registration.

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Rules in trade names or business names:

1. A name or designation may not be used as a
trade name if by its nature or the use to which
such name or designation may be put, it is
contrary to public order or morals and if, in
particular, it is liable to deceive trade circles or
the public as to the nature of the enterprise
identified by that name.
2. 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.
3. In particular, any subsequent use of the trade
name by a third party, whether as a trade name
or a mark or collective mark, or any such use of
a similar trade name or mark, likely to mislead
the public, shall be deemed unlawful.
4. Any change in the ownership of a trade name
shall be made with the transfer of the enterprise
or part thereof identified by that name.
Rules on collective marks:

1. An application for registration of a collective
mark shall designate the mark as a collective
mark and shall be accompanied by a copy of the
agreement, if any, governing the use of the
collective mark.
2. The registered owner of a collective mark shall
notify the Director of any changes made in
respect of the agreement.
3. The court shall cancel the registration of a
collective mark if the person requesting the
cancellation proves that only the registered
owner uses the mark, or that he uses or permits
its use in contravention of the agreements or
that he uses or permits its use in a manner liable
to deceive trade circles or the public as to the
origin or any other common characteristics of
the goods or services concerned.
4. The registration of a collective mark, or an
application therefor shall not be the subject of a
license contract.
Unfair competition:
1. Any person who shall employ deception or any
other means contrary to good faith by which he
shall pass the goods manufactured by him or in
which he deals, or his business, or services for
those of the one having established such
goodwill, or who shall commit any acts
calculated to produce said result.
2. Any person, who is selling his goods and gives
them the general appearance of goods of
another manufacturer or dealer, either as to the
goods themselves or in the wrapping of the
packages in which they are contained, or the
devices or words thereon, or in any other feature
of their appearance, which would be likely to
influence purchasers to believe that the goods
offered are those of a manufacturer or dealer,
other than the actual manufacturer or dealer,
who otherwise clothes the goods with such
appearance as shall deceive the public and
defraud another of his legitimate trade, or any
subsequent vendor of such goods or any agent

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of any vendor engaged in selling such goods

with a like purpose
3. Any person who by any artifice, or device or who
employs any other means calculated to induce
the false belief that such person is offering the
services of another who has identified such
services in the mind of the public
4. Any person who shall make any false statement
in the course of trade or who shall commit any
other act contrary to good faith of a nature
calculated to discredit the goods, business or
services of another
Criminal penalties: independent of the civil and

administrative sanctions imposed by law, imprisonment
from 2 years to 5 years and a fine ranging from
P50,000.00 to P200,000.00
COPYRIGHTS
Basic Principles:
1. Moment of creation: Works are protected by the
sole fact of their creation, irrespective of their
mode or form of expression, as well as of their
content, quality and purpose.
2. Unprotected subject matter: No protection shall
extend to any idea, procedure, system method
or operation, concept, principle, discovery or
mere data as such, even if they are expressed,
explained, illustrated or embodied in a work;
news of the day and other miscellaneous facts
having the character of mere items of press
information; or any official text of a legislative,
administrative or legal nature, as well as any
official translation thereof.
3. Copyright and material object: The copyright is
distinct from the property in the material object
subject to it. Consequently, the transfer or
assignment of the copyright shall not itself
constitute a transfer of the material object. Nor
shall a transfer or assignment of the sole copy or
of one or several copies of the work imply
transfer or assignment of the copyright.
Definition of Terms:
1. Author: the natural person who has created the
work
2. Collective work: created by 2 or more natural
persons at the initiative and under the direction
of another with the understanding that it will be
disclosed by the latter under his own name and
that contributing natural persons will not be
identified
3. Public lending: transfer of possession of the
original or a copy of a work or sound recording
for limited period, for non-profit purposes, by an
institution the services of which are available to
the public, such as public library or archive
4. Published works: works, which with the consent
of the authors, are made available to the public
5. Rental: transfer of possession of the original
copy or a copy of a work or sound recording for
a limited period of time, for profit-making
purposes
6. Work of applied art: an artistic creation with
utilitarian functions or incorporated in a useful

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article, whether made by hand or produced on

an industrial scale
Copyright: right over literary and artistic works, which are

original intellectual creations in the literary and artistic
domain protected from the moment of creation
Copyrightable works:
1. Literary and artistic works:
a. Books, pamphlets, articles and other
writings
b. Periodicals and newspapers
c. Lectures, sermons, addresses,
dissertations prepared for oral delivery,
whether or not reduced in writing or
other material form
d. Letters
e. Dramatic or dramatico-musical
compositions; choreographic works or
entertainment in dumb shows
f. Musical compositions, with or without
words
g. Works of drawing, painting, architecture,
sculpture, engraving, lithography or
other works or art; models or designs for
works of art
h. Original ornamental designs or models
for articles of manufacture, whether or
not registrable as an industrial design,
and other works of applied art
i. Illustrations, maps, plans, sketches,
charts and 3-dimensional works relative
to geography, topography, architecture
or science
j. Drawings or plastic works of a scientific
or technical character
k. Photographic works including works
produced by a process analogous to
photography; lantern slides
l. Audiovisual works and cinematographic
works and works produced by a process
analogous to cinematography or any
process for making audiovisual
recordings
m. Pictorial illustrations and advertisements
n. Computer programs
o. Other literary, scholarly, scientific and
artistic works
2. Derivative works:
a. Dramatizations, translations,
adaptations, abridgments, arrangements
and other alterations of literary or artistic
works
b. Collections of literary, scholarly or
artistic works and compilations of data
and other materials which are original by
reason of the selection or coordination
arrangement of their contents
Published Edition of Work: In addition to the right to

publish granted by the author, his heirs, or assigns, the
publisher shall have a copyright consisting merely of the
right of reproduction of the typographical arrangement of
the published edition of the work.
Non-copyrightable works:

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1. Any idea, procedure, system, method or

operation, concept, principle, discovery or mere
data as such, even if they are expressed,
explained, illustrated or embodied in a work
2. News of the day and other miscellaneous facts
having the character of mere items of press
information
3. Any official text of a legislative, administrative or
legal nature, as well as any official translation
thereof
4. Any work of the government of the Philippines
Rights of copyright owner:

1. Economic rights: exclusive right to carry out,
authorize or prevent:
a. Reproduction of the work or substantial
portion of the work
b. Dramatization, translation, adaptation,
abridgment, arrangement or other
transformation of the work
c. First public distribution of the original
copy of the work
d. Rental of the original or a copy of an
audiovisual or cinematographic work
e. Public display of the original or a copy of
the work
f. Public performance of the work
g. Other communication to the public of the
work
2. Moral rights (Term: 50 years after author’s
death; not assignable or subject to license)
a. Require that the authorship of the works
be attributed to him, in a prominent way
on the copies, and with the public use of
the work
b. Make any alterations of his work prior to
or to withhold it from publication
c. Object to any distortion, mutilation or
other modification of, or other
derogatory action in relation to, his work
which would be prejudicial to his honor
or reputation
d. Restrain the use of his name with
respect to any work not if his own
creation or in a distorted version of his
work
Note: An author may waive his moral rights by a
written instrument except when the waiver
permits another that would substantially tend to
injure the literary or artistic reputation of another
author or use the name of the author with
respect to a work he did not create. The person
or persons to be charged with the posthumous
enforcement of these rights shall be named in
writing to be filed with the National Library. In
default of such person or persons, it shall
devolve upon either the author’s heirs, and in
default of the heirs, the Director of the National
Library.
Publisher’s rights:
1. The right to publish granted by the author, his
heirs or assigns
2. The publisher shall have a copyright consisting
merely of the right of reproduction of the
typographical arrangement of the published
edition of the work

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3. If submitted to newspaper, magazine and the

like, the right to publish once materials sent by a
writer, a photographer, an artist to a periodical r
newspaper publisher, but such writer or artist
retains his copyright on the piece
Rules on ownership of copyright:

1. One creator: creator, his heirs or assigns owns
copyright
2. Joint creation: co-authors shall be the original
owners of the copyright and in the absence of
agreement their rights shall be governed by the
rules on co-ownership.
3. Commissioned work: the person commissioning
owns the work; ownership of copyright remains
with the creator, unless there is a stipulation to
the contrary
4. Audiovisual work: producer for purposes of
exhibition; for all other purposes, the producer,
the author of the scenario, the composer, the
film director, the photographic director and the
author of the work are the owners
5. Pseudonymous and anonymous works: unless
the author is indisputably known, the publisher
shall be presumed to be the representative of
the author
6. Employee’s work during course of employment:
employer, if the result of regular functions or
duties but the employee owns it if it is not part of
his duties
Limitations on Copyright: does not constitute

infringement:
1. The recitation or performance of a work, once it
has been lawfully made accessible to the public,
if done privately and free of charge or if made
strictly for a charitable or religious institution or
society;
2. The making of quotations from a published work
if they are compatible with fair use and only to
the extent justified for the purpose;
3. The reproduction or communication to the public
by mass media of articles on current political,
social, economic, scientific or religious topic,
lectures, addresses and other works of the same
nature, which are delivered in public if such use
is for information purposes and has not been
expressly reserved and the source is clearly
indicated;
4. The reproduction and communication to the
public of literary, scientific, or artistic works as
part of reports of current events by means of
photography, cinematography, or broadcasting
to the extent necessary for the purpose;
5. The inclusion of a work in a publication,
broadcast, or other communication to the public,
sound recording or film, if such inclusion is made
by way of illustration for teaching purposes and
is compatible with fair use, and source and
name of author are mentioned;
6. The recording made in schools, universities, or
educational institutions of a work included in a
broadcast for the use of such schools,
universities, or educational institutions (such
recording must be deleted within a reasonable
period after first broadcast);

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7. The making of ephemeral recordings by a

broadcast organization by means of its own
facilities and for use in its own broadcast;
8. The use made of a work by or under the
direction or control of the Government, by the
National Library or by educational, scientific, or
professional institutions where such use is in the
public interest and is compatible with fair use;
9. The public performance or the communication to
the public of a work, in a place where no
admission fee is charged in respect of such
public performance or communication, by a club
or institution for charitable or educational
purpose only, whose aim is not profit making;
10. Public display of the original or a copy of the
work not made by means of a film, slide,
television image or otherwise on screen or by
means of any other device or process;
11. Any use made if a work for the purpose of any
judicial proceedings or for the giving of
professional advice by a legal practitioner.
Doctrine of Fair Use: Fair use of a copyrighted work for

criticism, comment, news reporting, teaching including
multiple copies for classroom use scholarship, research
and similar purposes is not an infringement of copyright.
Factors:
1. Purpose and the character of the use
2. Nature of the copyrighted work
3. Amount and substantiality of the portions used
4. Effect of the use upon the potential market of the
copyrighted work
Work of Architecture: includes the right to control the

erection of any building which reproduces the whole or a
substantial part of the work either in its original form or in
any form recognizably derived from the original;
excludes the right to control the reconstruction or
rehabilitation in the same style as the original of a
building to which that copyright relates
Rules on Reproduction: permitted

1. Published work: private reproduction in a single
copy made by a natural person exclusively for
research and private study, without the
authorization of the owner of copyright, except:
a. Work of architecture;
b. Entire book or a substantial part thereof,
or of a musical work in graphic form by
reprographic means;
c. Compilation of data and other materials;
d. Computer program; and
e. Where reproduction would unreasonably
conflict with a normal exploitation of the
work or would otherwise unreasonably
prejudice the legitimate interests of the
author.
2. By libraries: make a single copy of the work by
reprographic reproduction, without the
authorization of the author or copyright owner:
a. Where the work by reason of its fragile
character or rarity cannot be lent to user
in its original form;
b. Where the works are isolated articles in
composite works or brief portions of
other published works and the

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reproduction is necessary to supply

them, when this is considered
expedient, to persons requesting their
loan for purposes of research or study
instead of lending the volumes or
booklets which contain them; and
c. Where the making of such copy is in
order to preserve and, if necessary in
the event that it is lost, destroyed, or
rendered unusable, replace a copy, or to
replace, in the permanent collection of
another similar library or archive, a copy
which has been lost, destroyed, or
rendered unusable and copies are not
available with the publisher.
3. Computer program: reproduction in one back-up
copy or adaptation of a computer program,
without authorization of the author, or other
copyright owner
Importation for Personal Purposes: permitted without the

authorization of the author of or other copyright owner
1. When copies of the work are not available in the
Philippines, and:
a. Not more than one copy at one time is
imported for strictly individual use only;
or
b. The importation is by authority of and for
the use of the Philippine Government; or
c. The importation, consisting of not more
than 3 such copies or likenesses in any
one invoice, is not for sale but for use
only of any religious, charitable, or
educational society or institution duly
incorporated or registered, or is for the
encouragement of the fine arts, or for
any state school, college, university, or
free public library in the Philippines
2. When such copies form parts of libraries and
personal baggage belonging to persons or
families arriving from foreign countries and are
not intended for sale (should not exceed 3
copies)
Breach of Contract: An author cannot be compelled to

perform his contract to create a work or for the
publication of his work already in existence. However, he
may be held liable for damages for breach of such
contract.
Sale or Lease of Work: 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 5%.
Effectivity: during the lifetime of the author and for 50
years after his death
Exception: prints, etchings, engravings, works of applied
art, or works of similar kind wherein the author primarily
derives gain from the proceeds of reproductions
Works Term of Protection

Original, derivative, and During the life of the author and
posthumous works for 50 years after his death

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Works of joint authorship During the life of the last surviving

author and for 50 years after his
death
Anonymous or pseudonymous 50 years from the date on which
works the work was first lawfully
published
If author’s identity is revealed or is During the life of the author (or

no longer in doubt last surviving author) and for 50
years after his death
If not published
50 years from the making of the
work
Works of applied art 25 tears from the date of making
Photographic works 50 years from publication
If not published 50 years from making

Audio-visual works 50 years from publication
If not published 50 years from making

How to compute: The term of protection subsequent to the death of the
author shall run from the date of his death or of publication, but such
terms shall always be deemed to begin on the first day of January of
the year following the event which gave rise to them.
Example: If the author of a literary work dies on July 1, 2017, the 50
year-term shall begin to run on January 1, 2018. Hence, the protection
expires on December 31, 2067 and not June 30, 2067.
Performances not incorporated in 50 years from the end of the year
recordings in which the performance took
place
Sound or image and sound 50 years from the end of the year
recordings and for performances in which the recording took place
incorporated therein
Broadcasts 20 years from the date the
broadcast took place
Presumption of Authorship:
1. The natural person whose name is indicated on
a work in the usual manner as the author shall,
in the absence of proof to the contrary, be
presumed to be the author of the work.
(applicable where the pseudonym leaves no
doubt as to the identity of the author)
2. The person or body corporate whose name
appears on an audio-visual work in the usual
manner shall, in the absence of proof to the
contrary, be presumed to be the maker of said
work.
Ownership of Deposit and Instruments: All copies

deposited and instruments in writing filed with the
National Library and the Supreme Court Library in
accordance with RA8293 shall become the property of
the Government.
Copyright Infringement: when there is piracy or

substantial reproduction
Remedies:
1. Injunction to prevent infringement

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2. Action for damages which should be filed within

4 years
3. Criminal case
Criminal penalties:
1. Imprisonment of 1 to 3 years plus fine from
P50,000.00 to P100,000.00 for the first offense
2. Imprisonment of 3 years and 1 day to 6 years
plus fine from P150,000.00 to P500,000.00 for
the second offense
3. Imprisonment of 6 years and 1 day to 9 years
plus fine from P500,000.00 to P1,500,000.00 for
the third and subsequent offenses
4. In all cases, subsidiary imprisonment in cases of
insolvency

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DATA PRIVACY ACT (DPA or RA 10173)
Policy: It is the policy of the State to protect the fundamental

human right of privacy of communication while ensuring free
flow of information to promote innovation and growth. The State
recognizes the vital role of information and communications
technology in nation-building and its inherent obligation to
ensure that personal information in information and
communications systems in the government and in the private
sector are secured and protected.
Definition of Terms:
Consent of the data subject refers to any freely given, specific,

informed indication of will, whereby the data subject agrees to
the collection and processing of personal information about
and/or relating to him or her. Consent shall be evidenced by
written, electronic or recorded means. It may also be given on
behalf of the data subject by an agent specifically authorized by
the data subject to do so.
Data subject refers to an individual whose personal information

is processed.
Direct marketing refers to communication by whatever means

of any advertising or marketing material which is directed to
particular individuals.
Filing system refers to any act of information relating to natural

or juridical persons to the extent that, although the information is
not processed by equipment operating automatically in response
to instructions given for that purpose, the set is structured, either
by reference to individuals or by reference to criteria relating to
individuals, in such a way that specific information relating to a
particular person is readily accessible.
Information and Communications System refers to a system

for generating, sending, receiving, storing or otherwise
processing electronic data messages or electronic documents
and includes the computer system or other similar device by or
which data is recorded, transmitted or stored and any procedure
related to the recording, transmission or storage of electronic
data, electronic message, or electronic document.
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.
Personal information controller 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. The term excludes:
1. A person or organization who performs such functions as
instructed by another person or organization; and
2. An individual who collects, holds, processes or uses
personal information in connection with the individual’s
personal, family or household affairs.

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Personal information processor refers to any natural or

juridical person qualified to act as such under DPA to whom a
personal information controller may outsource the processing of
personal data pertaining to a data subject.
Processing refers to any operation or any set of operations

performed upon personal information including, but not limited
to, the collection, recording, organization, storage, updating or
modification, retrieval, consultation, use, consolidation, blocking,
erasure or destruction of data.
Privileged information refers to any and all forms of data which

under the Rules of Court and other pertinent laws constitute
privileged communication.
Sensitive personal information refers to personal information:

1. About an individual’s race, ethnic origin, marital status, age,
color, and religious, philosophical or political affiliations;
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.
Scope: DPA 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, except when DPA is not
applicable, subject to the requirements of extraterritorial
application.
When DPA not applicable:

1. 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:
a. The fact that the individual is or was an officer or
employee of the government institution;
b. The title, business address and office telephone number
of the individual;
c. The classification, salary range and responsibilities of
the position held by the individual; and
d. The name of the individual on a document prepared by
the individual in the course of employment with the
government;
2. 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;
3. 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;
4. Personal information processed for journalistic, artistic,
literary or research purposes;

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5. 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. (NOTE: This does not amend or repeal the
Secrecy of Bank Deposits Act, the Foreign Currency Deposit
Act, and the Credit Information System Act);
6. 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 RA 9510, and RA 9160, as amended, otherwise
known as the Anti-Money Laundering Act and other
applicable laws; and
7. 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.
Protection Afforded to Journalists and Their Sources: The

DPA did not amend or repeal the provisions of RA 53, which
affords the publishers, editors or duly accredited reporters of any
newspaper, magazine or periodical of general circulation
protection from being compelled to reveal the source of any
news report or information appearing in said publication which
was related in any confidence to such publisher, editor, or
reporter.
Extraterritorial Application: The DPA applies to an act done or

practice engaged in and outside of the Philippines by an entity
if:
1. The act, practice or processing relates to personal
information about a Philippine citizen or a resident;
2. 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:
a. A contract is entered in the Philippines;
b. A juridical entity unincorporated in the Philippines but
has central management and control in the country;
and
c. 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
3. The entity has other links in the Philippines such as, but not
limited to:
a. The entity carries on business in the Philippines; and
b. The personal information was collected or held by an
entity in the Philippines.
Functions of the National Privacy Commission:

1. Ensure compliance of personal information controllers with
the DPA;
2. Receive complaints, institute investigations, facilitate or
enable settlement of complaints through the use of
alternative dispute resolution processes, adjudicate, award
indemnity on matters affecting any personal information,
prepare reports on disposition of complaints and
resolution of any investigation it initiates, and, in cases it
deems appropriate, publicize any such
report: Provided, That in resolving any complaint or
investigation (except where amicable settlement is reached
by the parties), the Commission shall act as a collegial
body. For this purpose, the Commission may be given

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access to personal information that is subject of any

complaint and to collect the information necessary to
perform its functions under the DPA;
3. Issue cease and desist orders, impose a temporary or
permanent ban on the processing of personal information,
upon finding that the processing will be detrimental to
national security and public interest;
4. Compel or petition any entity, government agency or
instrumentality to abide by its orders or take action on a
matter affecting data privacy;
5. Monitor the compliance of other government agencies or
instrumentalities on their security and technical measures
and recommend the necessary action in order to meet
minimum standards for protection of personal information
pursuant to the DPA;
6. Coordinate with other government agencies and the private
sector on efforts to formulate and implement plans and
policies to strengthen the protection of personal information
in the country;
7. Publish on a regular basis a guide to all laws relating to data
protection;
8. Publish a compilation of agency system of records and
notices, including index and other finding aids;
9. Recommend to the Department of Justice (DOJ) the
prosecution and imposition of penalties specified in
Sections 25 to 29 of the DPA;
10. Review, approve, reject or require modification of privacy
codes voluntarily adhered to by personal information
controllers: Provided, That the privacy codes shall adhere to
the underlying data privacy principles embodied in
DPA: Provided, further, That such privacy codes may include
private dispute resolution mechanisms for complaints
against any participating personal information controller. For
this purpose, the Commission shall consult with relevant
regulatory agencies in the formulation and administration of
privacy codes applying the standards set out in the DPA,
with respect to the persons, entities, business activities and
business sectors that said regulatory bodies are authorized
to principally regulate pursuant to the law: Provided,
finally. That the Commission may review such privacy codes
and require changes thereto for purposes of complying with
the DPA;
11. Provide assistance on matters relating to privacy or data
protection at the request of a national or local agency, a
private entity or any person;
12. Comment on the implication on data privacy of proposed
national or local statutes, regulations or procedures, issue
advisory opinions and interpret the provisions of the DPA
and other data privacy laws;
13. Propose legislation, amendments or modifications to
Philippine laws on privacy or data protection as may be
necessary;
14. Ensure proper and effective coordination with data privacy
regulators in other countries and private accountability
agents, participate in international and regional initiatives for
data privacy protection;
15. Negotiate and contract with other data privacy authorities of
other countries for cross-border application and
implementation of respective privacy laws;
16. Assist Philippine companies doing business abroad to
respond to foreign privacy or data protection laws and
regulations; and
17. Generally perform such acts as may be necessary to
facilitate cross-border enforcement of data privacy
protection.

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Confidentiality: The Commission shall ensure at all times the

confidentiality of any personal information that comes to its
knowledge and possession.
Organizational Structure of the Commission:

- Attached to the Department of Information and
Communications Technology (DICT)
- Headed by a Privacy Commissioner, who shall also act as
Chairman of the Commission, assisted by two (2) Deputy
Privacy Commissioners, one to be responsible for Data
Processing Systems and one to be responsible for
Policies and Planning
- The Privacy Commissioner and the two (2) Deputy Privacy
Commissioners shall be appointed by the President of the
Philippines for a term of three (3) years, and may be
reappointed for another term of three (3) years. Vacancies
in the Commission shall be filled in the same manner in
which the original appointment was made.
- The Privacy Commissioner must be at least thirty-five (35)
years of age and of good moral character,
unquestionable integrity and known probity, and a
recognized expert in the field of information technology and
data privacy.
- The Privacy Commissioner shall enjoy the benefits,
privileges and emoluments equivalent to the rank of
Secretary.
- The Deputy Privacy Commissioners must be recognized
experts in the field of information and communications
technology and data privacy. They shall enjoy the benefits,
privileges and emoluments equivalent to the rank of
Undersecretary.
- The Privacy Commissioner, the Deputy Commissioners, or
any person acting on their behalf or under their direction,
shall not be civilly liable for acts done in good faith in the
performance of their duties. However, he or she shall be
liable for willful or negligent acts done by him or her which
are contrary to law, morals, public policy and good customs
even if he or she acted under orders or instructions of
superiors: Provided, That in case a lawsuit is filed against
such official on the subject of the performance of his or her
duties, where such performance is lawful, he or she shall be
reimbursed by the Commission for reasonable costs of
litigation.
The Secretariat: The Commission is hereby authorized to

establish a Secretariat. Majority of the members of the
Secretariat must have served for at least five (5) years in any
agency of the government that is involved in the processing of
personal information including, but not limited to, the following
offices: Social Security System (SSS), Government Service
Insurance System (GSIS), Land Transportation Office (LTO),
Bureau of Internal Revenue (BIR), Philippine Health Insurance
Corporation (PhilHealth), Commission on Elections (COMELEC),
Department of Foreign Affairs (DFA), Department of Justice
(DOJ), and Philippine Postal Corporation (Philpost).
General Data Privacy Principles: The processing of personal

information shall be allowed, subject to compliance with the
requirements of the DPA and other laws allowing disclosure of
information to the public and adherence to the principles of
transparency, legitimate purpose and proportionality.
Personal information must, be:

1. Collected for specified and legitimate purposes
determined and declared before, or as soon as reasonably

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practicable after collection, and later processed in a way

compatible with such declared, specified and legitimate
purposes only;
2. Processed fairly and lawfully;
3. Accurate, relevant and, where necessary for purposes for
which it is to be used the processing of personal information,
kept up to date; inaccurate or incomplete data must be
rectified, supplemented, destroyed or their further processing
restricted;
4. Adequate and not excessive in relation to the purposes for
which they are collected and processed;
5. Retained only for as long as necessary for the fulfillment of
the purposes for which the data was obtained or for the
establishment, exercise or defense of legal claims, or for
legitimate business purposes, or as provided by law; and
6. Kept in a form which permits identification of data subjects
for no longer than is necessary for the purposes for which
the data were collected and processed: Provided, That
personal information collected for other purposes may lie
processed for historical, statistical or scientific purposes, and
in cases laid down in law may be stored for longer
periods: Provided, further, That adequate safeguards are
guaranteed by said laws authorizing their processing.
The personal information controller must ensure

implementation of personal information processing principles set
out herein.
Criteria for Lawful Processing of Personal Information: The

processing of personal information shall be permitted only if not
otherwise prohibited by law, and when at least one of the
following conditions exists:
1. The data subject has given his or her consent;
2. The processing of personal information is necessary and is
related to the fulfillment of a contract with the data subject or
in order to take steps at the request of the data subject prior
to entering into a contract;
3. The processing is necessary for compliance with a legal
obligation to which the personal information controller is
subject;
4. The processing is necessary to protect vitally important
interests of the data subject, including life and health;
5. The processing is necessary in order to respond to
national emergency, to comply with the requirements of
public order and safety, or to fulfill functions of public
authority which necessarily includes the processing of
personal data for the fulfillment of its mandate; or
6. The processing is necessary for the purposes of the
legitimate interests pursued by the personal information
controller or by a third party or parties to whom the data is
disclosed, except where such interests are overridden by
fundamental rights and freedoms of the data subject which
require protection under the Philippine Constitution.
Sensitive Personal Information and Privileged Information:

The processing of sensitive personal information and privileged
information shall be prohibited, except in the following cases:
1. The data subject has given his or her consent, specific to
the purpose prior to the processing, or in the case of
privileged information, all parties to the exchange have given
their consent prior to processing;
2. The processing of the same is provided for by existing laws
and regulations: Provided, That such regulatory
enactments guarantee the protection of the sensitive
personal information and the privileged
information: Provided, further, That the consent of the data

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subjects are not required by law or regulation permitting the

processing of the sensitive personal information or the
privileged information;
3. The processing is necessary to protect the life and health
of the data subject or another person, and the data subject is
not legally or physically able to express his or her consent
prior to the processing;
4. The processing is necessary to achieve the lawful and
noncommercial objectives of public organizations and their
associations: Provided, That such processing is only
confined and related to the bona fide members of these
organizations or their associations: Provided, further, That
the sensitive personal information are not transferred to third
parties: Provided, finally, That consent of the data subject
was obtained prior to processing;
5. The processing is necessary for purposes of medical
treatment, is carried out by a medical practitioner or a
medical treatment institution, and an adequate level of
protection of personal information is ensured; or
6. The processing concerns such personal information as is
necessary for the protection of lawful rights and
interests of natural or legal persons in court proceedings, or
the establishment, exercise or defense of legal claims, or
when provided to government or public authority.
Subcontract of Personal Information: A personal information

controller may subcontract the processing of personal
information: Provided, That the personal information controller
shall be responsible for ensuring that proper safeguards are in
place to ensure the confidentiality of the personal information
processed, prevent its use for unauthorized purposes, and
generally, comply with the requirements of the DPA and other
laws for processing of personal information. The personal
information processor shall comply with all the requirements of
the DPA and other applicable laws.
Extension of Privileged Communication: Personal

information controllers may invoke the principle of
privileged communication over privileged information that
they lawfully control or process. Subject to existing laws and
regulations, any evidence gathered on privileged information is
inadmissible.
Rights of the Data Subject: The data subject is entitled to:

1. Be informed whether personal information pertaining to him
or her shall be, are being or have been processed;
2. Be furnished the information indicated hereunder before the
entry of his or her personal information into the processing
system of the personal information controller, or at the next
practical opportunity:
a. Description of the personal information to be entered
into the system;
b. Purposes for which they are being or are to be
processed;
c. Scope and method of the personal information
processing;
d. The recipients or classes of recipients to whom they are
or may be disclosed;
e. Methods utilized for automated access, if the same is
allowed by the data subject, and the extent to which
such access is authorized;
f. The identity and contact details of the personal
information controller or its representative;
g. The period for which the information will be stored; and

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h. The existence of their rights, i.e., to access, correction,

as well as the right to lodge a complaint before the
Commission.
Any information supplied or declaration made to the data
subject on these matters shall not be amended without prior
notification of data subject: Provided, That the notification
under subsection (2) shall not apply should the personal
information be needed pursuant to a subpoena or when
the collection and processing are for obvious purposes,
including when it is necessary for the performance of or in
relation to a contract or service or when necessary or
desirable in the context of an employer-employee
relationship, between the collector and the data subject, or
when the information is being collected and processed as a
result of legal obligation;
3. Reasonable access to, upon demand, the following:
a. Contents of his or her personal information that were
processed;
b. Sources from which personal information were
obtained;
c. Names and addresses of recipients of the personal
information;
d. Manner by which such data were processed;
e. Reasons for the disclosure of the personal information
to recipients;
f. 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;
g. Date when his or her personal information concerning
the data subject were last accessed and modified; and
h. The designation, or name or identity and address of the
personal information controller;
4. 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. If the personal
information have been corrected, the personal information
controller shall ensure the accessibility of both the new and
the retracted information and the simultaneous receipt of the
new and the retracted information by recipients
thereof: Provided, That the third parties who have previously
received such processed personal information shall he
informed of its inaccuracy and its rectification upon
reasonable request of the data subject;
5. 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. In this case, the
personal information controller may notify third parties who
have previously received such processed personal
information; and
6. Be indemnified for any damages sustained due to such
inaccurate, incomplete, outdated, false, unlawfully obtained
or unauthorized use of personal information.
Transmissibility of Rights of the Data Subject: The lawful

heirs and assigns of the data subject may invoke the rights of
the data subject for, which he or she is an heir or assignee at
any time after the death of the data subject or when the data
subject is incapacitated or incapable of exercising the rights of
the data subject.

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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. The Commission may specify the electronic
format referred to above, as well as the technical standards,
modalities and procedures for their transfer.
Non-Applicability:
1) The rules on rights, its transmissibility, and portability are not
applicable if the processed personal information are used
only for the needs of scientific and statistical research
and, on the basis of such, no activities are carried out and no
decisions are taken regarding the data
subject: Provided, That the personal information shall be
held under strict confidentiality and shall be used only for
the declared purpose.
2) The rules on rights, its transmissibility, and portability are not
applicable to processing of personal information gathered for
the purpose of investigations in relation to any criminal,
administrative or tax liabilities of a data subject.
Security of Personal Information:

(a) The personal information controller must implement
reasonable and appropriate organizational, physical and
technical measures intended for the protection of personal
information against any accidental or unlawful
destruction, alteration and disclosure, as well as against
any other unlawful processing.
(b) The personal information controller shall implement
reasonable and appropriate measures to protect personal
information against natural dangers such as accidental
loss or destruction, and human dangers such as
unlawful access, fraudulent misuse, unlawful
destruction, alteration and contamination.
(c) The determination of the appropriate level of security under
this section must take into account the nature of the
personal information to be protected, the risks
represented by the processing, the size of the
organization and complexity of its operations, current
data privacy best practices and the cost of security
implementation. Subject to guidelines as the Commission
may issue from time to time, the measures implemented
must include:
(1) Safeguards to protect its computer network against
accidental, unlawful or unauthorized usage or
interference with or hindering of their functioning or
availability;
(2) A security policy with respect to the processing of
personal information;
(3) A process for identifying and accessing reasonably
foreseeable vulnerabilities in its computer networks, and
for taking preventive, corrective and mitigating action
against security incidents that can lead to a security
breach; and
(4) Regular monitoring for security breaches and a
process for taking preventive, corrective and mitigating
action against security incidents that can lead to a
security breach.
(d) The personal information controller must further ensure that
third parties processing personal information on its behalf
shall implement the security measures required by the
DPA.

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(e) The employees, agents or representatives of a personal

information controller who are involved in the processing of
personal information shall operate and hold personal
information under strict confidentiality if the personal
information are not intended for public disclosure. This
obligation shall continue even after leaving the public
service, transfer to another position or upon termination of
employment or contractual relations.
(f) The personal information controller shall promptly notify the
Commission and affected data subjects when sensitive
personal information or other information that may, under the
circumstances, be used to enable identity fraud are
reasonably believed to have been acquired by an
unauthorized person, and the personal information controller
or the Commission believes that such unauthorized
acquisition is likely to give rise to a real risk of serious harm
to any affected data subject. The notification shall at least
describe the nature of the breach, the sensitive personal
information possibly involved, and the measures taken
by the entity to address the breach. Notification may be
delayed only to the extent necessary to determine the
scope of the breach, to prevent further disclosures, or to
restore reasonable integrity to the information and
communications system.
1) In evaluating if notification is unwarranted, the
Commission may take into account compliance by the
personal information controller and existence of
good faith in the acquisition of personal information.
2) The Commission may exempt a personal information
controller from notification where, in its reasonable
judgment, such notification would not be in the public
interest or in the interests of the affected data
subjects.
3) The Commission may authorize postponement of
notification where it may hinder the progress of a
criminal investigation related to a serious breach.
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.
(a) The personal information controller is accountable for
complying with the requirements of the DPA and shall use
contractual or other reasonable means to provide a
comparable level of protection while the information are
being processed by a third party.
(b) The personal information controller shall designate an
individual or individuals who are accountable for the
organization’s compliance with the DPA. The identity of the
individual(s) so designated shall be made known to any data
subject upon request.
Responsibility of Heads of Agencies: All sensitive personal

information maintained by the government, its agencies and
instrumentalities shall be secured, as far as practicable, with the
use of the most appropriate standard recognized by the
information and communications technology industry, and as
recommended by the Commission. The head of each
government agency or instrumentality shall be responsible for
complying with the security requirements mentioned herein while
the Commission shall monitor the compliance and may
recommend the necessary action in order to satisfy the minimum
standards.

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Requirements Relating to Access by Agency Personnel to

Sensitive Personal Information:
(a) On-site and Online Access – Except as may be allowed
through guidelines to be issued by the Commission, no
employee of the government shall have access to sensitive
personal information on government property or through
online facilities unless the employee has received a security
clearance from the head of the source agency.
(b) Off-site Access – Unless otherwise provided in guidelines to
be issued by the Commission, sensitive personal information
maintained by an agency may not be transported or
accessed from a location off government property unless a
request for such transportation or access is submitted
and approved by the head of the agency in accordance with
the following guidelines:
1) Deadline for Approval or Disapproval – In the case of
any request submitted to the head of an agency, such
head of the agency shall approve or disapprove the
request within two (2) business days after the date of
submission of the request. In case there is no action by
the head of the agency, then such request is considered
disapproved;
2) Limitation to One thousand (1,000) Records – If a
request is approved, the head of the agency shall limit
the access to not more than one thousand (1,000)
records at a time; and
3) Encryption – Any technology used to store, transport or
access sensitive personal information for purposes of
off-site access approved under this subsection shall be
secured by the use of the most secure encryption
standard recognized by the Commission.
The requirements of this subsection shall be implemented not
later than six (6) months after the date of the enactment of the
DPA.
Applicability to Government Contractors: In entering into any

contract that may involve accessing or requiring sensitive
personal information from one thousand (1,000) or more
individuals, an agency shall require a contractor and its
employees to register their personal information processing
system with the Commission in accordance with the DPA and to
comply with the other provisions of the DPA, in the same manner
as agencies and government employees comply with such
requirements.
Extent of Liability:
1) If the offender is a corporation, partnership or any juridical
person, the penalty shall be imposed upon the responsible
officers, as the case may be, who participated in, or by their
gross negligence, allowed the commission of the crime.
2) If the offender is a juridical person, the court may suspend
or revoke any of its rights under the DPA.
3) If the offender is an alien, he or she shall, in addition to the
penalties herein prescribed, be deported without further
proceedings after serving the penalties prescribed.
4) If the offender is a public official or employee and he or she
is found guilty of acts penalized under Sections 27 and 28 of
the DPA, he or she shall, in addition to the penalties
prescribed herein, suffer perpetual or temporary absolute
disqualification from office, as the case may be.
Large-Scale: The maximum penalty in the scale of penalties

respectively provided for the preceding offenses shall be
imposed when the personal information of at least one hundred
(100) persons is harmed, affected or involved as the result of
the punishable actions.

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Offense Committed by Public Officer: When the offender or

the person responsible for the offense is a public officer as
defined in the Administrative Code of the Philippines in the
exercise of his or her duties, an accessory penalty consisting in
the disqualification to occupy public office for a term double
the term of criminal penalty imposed shall he applied.
Restitution: Restitution for any aggrieved party shall be

governed by the provisions of the New Civil Code.
ELECTRONIC COMMERCE ACT

(ECA or RA 8792)
Legal Recognition of Electronic 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.
Legal Recognition of Electronic Documents:

Electronic documents shall have the legal effect,
validity or enforceability as any other document or
legal writing, and –
a) Where the law requires a document to be in

writing, that requirement is met by an electronic
document if the said electronic document maintains
its integrity and reliability and can be authenticated
so as to be usable for subsequent reference, in that
–
i. The electronic document has remained
complete and unaltered, apart from the
addition of any endorsement and any authorized
change, or any change which arises in the
normal course of communication, storage and
display; and
ii. The electronic document is reliable in light of
the purpose for which it was generated and in
the light of all relevant circumstances.
b) Paragraph (a) applies whether the requirement
therein is in the form of an obligation or whether
the law simply provides consequences for the
document not being presented or retained in its
original from.
c) Where the law requires that a document be
presented or retained in its original form, that
requirement is met by an electronic document if
–
i. There exists a reliable assurance as to the
integrity of the document from the time when it
was first generated in its final form; and
ii. That document is capable of being displayed
to the person to whom it is to be presented:
Provided, That no provision of the ECA shall
apply to vary any and all requirements of

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existing laws on formalities required in the

execution of documents for their validity.
For evidentiary purposes, an electronic document

shall be the functional equivalent of a written
document under existing laws.
The ECA does not modify any statutory rule relating to

admissibility of electronic data massages or electronic
documents, except the rules relating to authentication
and best evidence.
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, existed under
which -
a) A method is used to identify the party sought to be
bound and to indicate said party's access to the
electronic document necessary for his consent or
approval through the electronic signature;
b) Said method is reliable and appropriate for the
purpose for which the electronic document was
generated or communicated, in the light of all
circumstances, including any relevant agreement;
c) It is necessary for the party sought to be bound, in or
order to proceed further with the transaction, to have
executed or provided the electronic signature; and
d) The other party is authorized and enabled to verify
the electronic signature and to make the decision to
proceed with the transaction authenticated by the
same.
Presumption Relating to Electronic Signatures: In

any proceedings involving an electronic signature, it
shall be presumed that -
a) The electronic signature is the signature of the
person to whom it correlates; and
b) The electronic signature was affixed by that
person with the intention of signing or approving
the electronic document unless the person relying
on the electronically signed electronic document
knows or has noticed of defects in or unreliability of
the signature or reliance on the electronic signature
is not reasonable under the circumstances.
Original Documents:
1) Where the law requires information to be presented
or retained in its original form, that requirement is
met by an electronic data message or electronic
document if;
a) 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; and
b) where it is required that information be
presented, that the information is capable of
being displayed to the person to whom it is to
be presented.
2) Paragraph (1) applies whether the requirement

therein is in the form of an obligation or whether the
law simply provides consequences for the

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information not being presented or retained in its

original form.
3) For the purpose of subparagraph (a) of paragraph

(1):
a) the criteria for assessing integrity shall be

whether the information has remained complete
and unaltered, apart from the addition of any
endorsement and any change which arises in
the normal course of communication, storage
and display; and
b) the standard of reliability required shall be
assessed in the light of purpose for which the
information was generated and in the light of all
the relevant circumstances.
Authentication of Electronic Data Messages and

Electronic Documents: Until the Supreme Court by
appropriate rules shall have so provided, electronic
documents, electronic data messages and electronic
signatures, shall be authenticated by demonstrating,
substantiating and validating a claimed identity of a
user, device, or another entity is an information or
communication system, among other ways, as follows:
a) The electronic signature shall be authenticated by
proof that a letter, character, number or other symbol
in electronic form representing the persons named in
and attached to or logically associated with an
electronic data message, electronic document, or
that the appropriate methodology or security
procedures, when applicable, were employed or
adopted by such person, with the intention of
authenticating or approving in an electronic data
message or electronic document;
b) The electronic data message or 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.
Admissibility and Evidential Weight of Electronic

Data Message or Electronic Document: In any legal
proceedings, nothing in the application of the rules on
evidence shall deny the admissibility of an electronic
data message or electronic document in evidence -
a) On the sole ground that it is in electronic form; or
b) On the ground that it is not in the standard written
form, and the electronic data message or electronic
document meeting, and complying with the
requirements under Sections 6 or 7 of the ECA shall
be the best evidence of the agreement and
transaction contained therein.
In assessing the evidential weight of an electronic data
message or electronic document, the reliability of the
manner in which it was generated, stored or
communicated, the reliability of the manner in which its
originator was identified, and other relevant factors shall
be given due regard.

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Retention of Electronic Data Message or Electronic

Document: Notwithstanding any provision of law, rule or
regulation to the contrary –
a) The requirement in any provision of law that certain
documents be retained in their original form is
satisfied by retaining them in the form of an
electronic data message or electronic document
which –
i. Remains accessible so as to be usable for
subsequent reference;
ii. Is retained in the format in which it was
generated, sent or received, or in a format which
can be demonstrated to accurately represent the
generated, sent or received;
iii. Enables the identification of its originator and
addressee, as well as the determination of the
date and the time it was sent or received.
b) The requirement referred to in paragraph (a) is
satisfied by using the services of a third party,
provided that the conditions set forth in
subparagraph s (i), (ii) and (iii) of paragraph (a) are
met.
Proof by Affidavit: The matters referred to on

admissibility and on the presumption of integrity, may be
presumed to have been established by an affidavit
given to the best of the deponent's knowledge subject
to the rights of parties in interest.
Cross – Examination:
1) A deponent of an affidavit that has been introduced
in evidence may be cross-examined as of right by a
party to the proceedings who is adverse in interest to
the party who has introduced the affidavit or has
caused the affidavit to be introduced.
2) Any party to the proceedings has the right to cross-
examine a person who is not party but recorded or
stored the electronic data message and/or electronic
document in the usual and ordinary course of
business.
Formation of Validity of Electronic Contracts:

1) Except as otherwise agreed by the parties, an offer,
the acceptance of an offer and such other
elements required under existing laws for the
formation of contracts may be expressed in,
demonstrated and proved by means of electronic
data messages or electronic documents and no
contract shall be denied validity or enforceability on
the sole ground that it is in the form of an electronic
data message or electronic document, or that any or
all of the elements required under existing laws for
the formation of contracts is expressed,
demonstrated and proved by means of electronic
data messages or electronic documents.
2) Electronic transactions made through networking
among banks, or linkages thereof with other entities
or networks, and vice versa, shall be deemed
consummated upon the actual dispensing of
cash or the debit of one account and the
corresponding credit to another, whether such
transaction is initiated by the depositor or by an
authorized collecting party: Provided, that the
obligation of one bank, entity, or person similarly
situated to another arising therefrom shall be

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considered absolute and shall not be subjected to

the process of preference of credits.
Recognition by Parties of Electronic Data Message

or Electronic Document: As between the originator
and the addressee of an electronic data message or
electronic document, a declaration of will or other
statement shall not be denied legal effect, validity or
enforceability solely on the ground that it is in the form of
an electronic data message.
Attribution of Electronic Data Message:

1) An electronic data message or electronic document
is that of the originator if it was sent by the originator
himself.
2) As between the originator and the addressee, an
electronic data message or electronic document is
deemed to be that of the originator if it was sent:
a) by a person who had the authority to act on
behalf of the originator with respect to that
electronic data message or electronic document;
or
b) by an information system programmed by, or on
behalf of the originator to operate automatically.
3) As between the originator and the addressee, an
addressee is entitled to regard an electronic data
message or electronic document as being that of the
originator, and to act on that assumption, if:
a) in order to ascertain whether the electronic data
message or electronic document was that of the
originator, the addressee properly applied a
procedure previously agreed to by the originator
for that purpose; or
b) the electronic data message or electronic
document as received by the addressee resulted
from the actions of a person whose relationship
with the originator or with any agent of the
originator enabled that person to gain access to
a method used by the originator to identify
electronic data messages as his own.
4) Paragraph (3) does not apply:
a) as of the time when the addressee has both
received notice from the originator that the
is not that of the originator, and has reasonable
time to act accordingly; or
b) in a case within paragraph (3) sub-paragraph
(b), at any time when the addressee knew or
should have known, had it exercised reasonable
care of used any agreed procedure, that the
was not that of the originator.
5) Where an electronic data message or electronic
document is that of the originator or is deemed to be
that of the originator, or the addressee is entitled to
act on that assumption, then, as between the
originator and the addressee, the addressee is
entitled to regard the electronic data message or
electronic document as received as being what the
originator intended to send, and to act on that
assumption. The addressee is not so entitled when it
knew or should have known, had it exercised
treasonable care or used any agreed procedure, that
the transmission resulted in any error in the
electronic data message or electronic document as
received.

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6) The addressee is entitled to regard each electronic

data message or electronic document received as a
separate electronic data message or electronic
document and to act on that assumption, except to
the extent that it duplicates another electronic data
message or electronic document and the addressee
knew or should have known, had it exercised
reasonable care or used any agreed procedure, that
the electronic data message or electronic document
was a duplicate.
Error on Electronic Data Message or Electronic

Document: The addressee is entitled to regard the
received as that which the originator intended to send,
and to act on that assumption, unless the addressee
knew or should have known, had the addressee
exercised reasonable care or used the appropriate
procedure –
a) That the transmission resulted in any error therein or
in the electronic document when the electronic data
message or electronic document enters the
designated information system, or
b) That electronic data message or electronic
document is sent to an information system which is
not so designated by the addressee for the
purposes.
Agreement on Acknowledgement of Receipt of

Electronic Data Messages or Electronic Documents:
The following rules shall apply where, on or before
sending an electronic data message or electronic
document, the originator and the addressee have
agreed, or in that electronic document or electronic data
message, the originator has requested, that receipt of
the electronic document or electronic data message be
acknowledged:
a) Where the originator has not agreed with the
addressee that the acknowledgement be given in a
particular form or by a particular method, an
acknowledgement 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 acknowledgement thereof, the electronic
data message or electronic document is treated
as though it has never been sent, until the
acknowledgement 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
acknowledgement, and the acknowledgement has
not been received by the originator within the time
specified or agreed or, if no time has been specified
or agreed, within the reasonable time, the originator
may give notice to the addressee stating that no
acknowledgement has been received and specifying
a reasonable time by which the acknowledgement
must be received; and if the acknowledgement is not
received within the time specified in subparagraph
(c), the originator may, upon notice to the
addressee, treat the electronic document or

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electronic data as though it had never been sent, or

exercise any other rights it may have.
Time of Dispatch of Electronic Data Messages or

Electronic Documents: Unless otherwise agreed
between the originator and the addressee, the dispatch
of an electronic data message or electronic document
occurs when it enters an information system outside the
control of the originator or of the person who sent the
electronic data message or electronic document on
behalf of the originator.
Time of Receipt of Electronic Data Messages or

Electronic Documents: Unless otherwise agreed
between the originator and the addressee, the time of
receipt of an electronic data message or electronic
document is as follows:
a) If the addressee has designated an information
system for the purpose of receiving electronic data
message or electronic document, receipt occurs at
the time when the electronic data message or
electronic document enters the designated
information system: Provide, however, that if the
originator and the addressee are both participants
in the designated information system, receipt
occurs at the time when the electronic data message
or electronic document is retrieved by the
addressee;
b) If the electronic data message or electronic
document is sent to an information system of the
addressee that is not the designated information
system, receipt occurs at the time when the
is retrieved by the addressee;
c) If the addressee has not designated an information
system, receipt occurs when the electronic data
message or electronic document enters an
information system of the addressee.
These rules apply notwithstanding that the place where
the information system is located may be different from
the place where the electronic data message or
electronic document is deemed to be received.
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. This rule shall apply even if the originator or
addressee had used a laptop or other portable device to
transmit or received his electronic data message or
electronic document. This rule shall also apply to
determine the tax situs of such transaction.
For the purpose hereof -
a) If the originator or addressee has more than one
place of business, the place of business is that
which has the closest relationship to the
underlying transaction or, where there is no
underlying transaction, the principal place of
business.
b) If the originator or the addressee does not have a
place of business, reference is to be made to its
habitual residence; or

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c) The "usual place of residence" in relation to a

body corporate, means the place where it is
incorporated or otherwise legally constituted.
Choice of Security Methods: Subject to applicable

laws and /or rules and guidelines promulgated by the
Department of Trade and Industry with other appropriate
government agencies, parties to any electronic
transaction shall be free to determine the type of level
of electronic data message and electronic document
security needed, and to select and use or implement
appropriate technological methods that suit their need.
Transport Documents:
1) Where the law requires that any action referred to
contract of carriage of goods be carried out in writing
or by using a paper document, that requirement is
met if the action is carried out by using one or
more electronic data messages or electronic
documents.
2) Paragraph (1) applies whether the requirement there
in is in the form of an obligation or whether the
law simply provides consequences for failing
either to carry out the action in writing or to use a
paper document.
3) If a right is to be granted to, or an obligation is to be
acquired by, one person and no person, and if the
law requires that, in order to effect this, the right or
obligation must be conveyed to that person by the
transfer, or use of, a paper document, that
requirement is met if the right or obligation is
conveyed by using one or more electronic data
messages or electronic documents;
4) For the purposes of paragraph (3), the standard of
reliability required shall be assessed in light of the
purpose for which the right or obligation was
conveyed and in the light of all the circumstances,
including any relevant agreement.
5) Where one or more data messages are used to
effect any action in subparagraphs (f) and (g) of
Section 25, no paper document used to effect any
such action is valid unless the use of electronic
data message or electronic document has been
terminated and replaced by the use of paper
documents. A paper document issued in these
circumstances shall contain a statement of such
termination. The replacement of the electronic data
messages or electronic documents by paper
documents shall not affect the rights or obligation of
the parties involved.
6) If a rule of laws is compulsorily applicable to a
contract of carriage of goods which is in, or is
evidenced by, a paper document, that rule shall not
be inapplicable to such a contract of carriage of
goods which is evidenced by one or more electronic
data messages or electronic documents by reason
of the fact that the contract is evidenced by such
electronic data messages or electronic documents
instead of by a paper document.
Government Use of Electronic Data Messages,

Electronic Documents and Electronic Signatures:
Notwithstanding any law to the contrary, within two (2)
years from the date of the effectivity of the ECA, all
departments, bureaus, offices and agencies of the
government, as well as all government-owned and -
controlled corporations, that pursuant to law require or

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accept the filing of documents, require that

documents be created, or retained and/or submitted,
issue permits, licenses or certificates of registration
or approval, or provide for the method and manner
of payment or settlement of fees and other
obligations to the government, shall -
a) accept the creation, filing or retention of such
documents in the form of electronic data messages
or electronic documents;
b) issue permits, licenses, or approval in the form of
electronic data messages or electronic documents;
c) require and/or accept payments, and issue receipts
acknowledging such payments, through systems
using electronic data messages or electronic
documents; or
d) transact the government business and/or perform
governmental functions using electronic data
messages or electronic documents, and for the
purpose, are authorized to adopt and promulgate,
after appropriate public hearing and with due
publication in newspapers of general circulation, the
appropriate rules, regulations, or guidelines, to,
among others, specify –
1) the manner and format in which such electronic
data messages or electronic documents shall be
filed, created, retained or issued;
2) where and when such electronic data
messages or electronic documents have to
signed, the use of an electronic signature, the
type of electronic signature required;
3) the format of an electronic data message or
electronic document and the manner the
electronic signature shall be affixed to the
electronic data message or electronic document;
4) the control processes and procedures as
appropriate to ensure adequate integrity,
security and confidentiality of electronic data
messages or electronic documents or records of
payments;
5) other attributes required to electronic data
messages or electronic documents or payments;
and
6) the full or limited use of the documents and
papers for compliance with the government
requirements: Provided, that the ECA shall be
itself mandate any department of the
government, organ of state or statutory
corporation to accept or issue any document in
the form of electronic data messages or
electronic documents upon the adoption,
promulgation and publication of the appropriate
rules, regulations or guidelines.
EASE OF DOING BUSINESS AND EFFICIENT

GOVERNMENT SERVICE DELIVERY ACT (RA 11032)
Objectives:
1. To improve the country’s competitiveness and
ease of doing business;
2. To further improve and speed up the delivery of
government services by simplifying the issuance
of permits and licenses;
3. To promote transparency and cut red tape in the
government for a more conducive business
environment.

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Benefits:
1. For the citizens: Transacting with government should
be hassle-free. The law prescribes processing time.
If documents are complete and in order, it should be
easier and faster to get a passport, driver’s license,
birth certificate, NBI clearance etc.
2. For the business sector: Whether starting a business
or running a business, the issuance of business
permits and licenses must be simple, speedy, and
streamlined in all government agencies.
3. For public employees and officials: Public service is
a public trust. Government personnel are expected
to deliver timely and efficient government service
and must be held accountable. They must
demonstrate integrity at all times.
Prescribed Processing Time: All government

agencies, national or local, government-owned-and-
controlled corporations (GOCCs), government
instrumentalities located in the Philippines or abroad
shall comply with prescribed processing time as follows:
- Simple transactions: 3 working days
- Complex transactions: 7 working days
- Highly technical transactions: 20 working days
Streamlined Procedures for the Issuance of Local

Business Licenses, Clearances, Permits, or
Authorizations:
- Unified business application form
- Automation of business permits and licenses
(LGUs)
- Establishment of Business One Stop Shop (BOSS)
- Barangay clearances and permits are now issued
at the city or municipality
Streamlined Procedures for Securing Fire

Clearances and Certificates:
- Bureau of Fire Protection (BFP) officials and
employees are not allowed to sell, offer, or
recommend specific brands of fire extinguishers and
other fire safety equipment
- Issuance of fire safety evaluation clearance (FSEC),
fire safety inspection clearance (FSIC), and
certification of fire incident (CFI) now streamlined
- BFP shall now be co-located in the BOSS or area
designated by the city/municipality
Automatic Approval: In case an agency fails to

approve or disapprove an original application within the
prescribed processing time, the said application shall be
deemed approved.
Citizen’s Charter: All government agencies shall set up

current and updated Citizen’s Charter to indicate in
detail the:
- Checklist of requirements for each type of
application or request
- Person/s responsible for each step
- Amount of fees
- Procedure to obtain a particular service
- Maximum time to complete the process
- Procedure for filing complaints

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Zero Contact Policy: No contact in any manner with

any requesting party concerning an application or
request except during submission of documents.
Central Business Portal: DICT to establish central

business portal to receive and capture application data
on business-related transactions, and provide links to
online registration of national government agencies
Philippine Business Databank: This shall provide

NGAs/LGUs access to data and information to verify the
validity and existence of business entities. Applicants
need not submit the same documentary
requirements previously submitted.
Interconnectivity Infrastructure Development:

Processing and approval of licenses, clearances,
permits or authorizations for the installation and
operation of telecommunication, broadcast towers,
facilities, equipment, and service shall be expedited.
Creation of the Anti-Red Tape Authority: The Anti-

Red Tape Authority shall:
- Implement and oversee national policy on anti-red
tape and ease of doing business and implement
reforms to improve competitiveness ranking
- Monitor compliance of agencies and issue notices
to erring and non-compliant government employees
and officials
- Initiate investigation motu propio, or upon receipt
of a complaint, or file cases for violations
- Review proposed major regulations of government
agencies, upon submitted regulatory impact
assessments
Creation of the EODB/ART Advisory Council: The

Ease of Doing Business/Anti-Red Tape Advisory Council
shall be a 7-person policy and advisory body composed
of:
1. DTI Secretary (Chair)
2. ARTA Director-General (Vice Chair)
3. DOF Secretary
4. DICT Secretary
5. DILG Secretary
6. Two (2) representatives from the private sector
(appointed by the President for a term of 3
years)
Penalties:
- Two-strike policy for government officials and
employees found in violation of EODB/EDGSA
- First Offense: Administrative liability with six (6)
months suspension, except for fixing or collusion
with fixers where the Revised Penal Code shall
apply
- Second Offense: Administrative and criminal
liabilities
o Dismissal from service
o Perpetual disqualification from holding public
office
o Forfeiture of retirement benefits
o Imprisonment of one (1) year to six (6) years
o Fine of not less than P500,000 but not more
than P2,000,000

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- Any person who commits any such act as but not

limited to bribery, extortion, or malicious
solicitation of favor shall be criminally liable and
shall be punished under the Revised Penal Code
and other special laws.
Source: Department of Trade and Industry-

Competitiveness Bureau (DTI-CB) – The temporary
Secretariat of the Anti-Red Tape Authority

RFBT 04 26 IPL and Other Special Laws - Supplemental Notes

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RFBT 04 26 IPL and Other Special Laws - Supplemental Notes

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No. 125 Brgy.

Regulatory Framework for Business Transactions

Effectivity: January 1, 1998

Technology transfer arrangements: contracts or

Copyright Patent Trademark

International Conventions and Reciprocity (Section 3 of

1|P a g e RLACO/DS ALES/NV ALDER AMA

Patentable Inventions: any technical solution of a

Classes of patentable inventions:

Novelty (Section 23 of RA8293): An invention shall not

2|P a g e RLACO/DS ALES/NV ALDER AMA

Non-prejudicial Disclosure: The disclosure of information

Inventive Step: if having regard to prior art, it is not

Right to a patent: belongs to the inventor, his heirs or

First-to-File Rule: If two or more persons have made the

Right of Priority: An application for patent filed by any

Priority Date: the date of filing of the foreign application

3|P a g e RLACO/DS ALES/NV ALDER AMA

Contents of Patent Application (in Filipino or English):

Unity of Invention: An application shall relate to one

Publication of Patent Application:

Substantive Examination: Within 6 months from date of

4|P a g e RLACO/DS ALES/NV ALDER AMA

1. If the application meets the requirements, IPO

Grounds for cancellation of a patent:

Committee of Three: composed of the Director of Legal

Effect of Cancellation of Patent:

Remedies of the true and actual inventor: If a person,

Rights conferred by a grant: A patent shall confer on its

Limitation of patent rights: The owner of a patent has no

5|P a g e RLACO/DS ALES/NV ALDER AMA

authorization, the acts within his rights in the following

Use by the Government: A government agency or third

Patent Infringement: the making, using, offering for sale,

6|P a g e RLACO/DS ALES/NV ALDER AMA

2. Addition rule: one makes, uses or sells an item

Doctrine of Equivalents: An infringement also takes

Civil action: to recover from the infringer such damages

Criminal action: imprisonment for a period not less than

Prescription: 3 years from the date of commission of the

Defenses in action for infringement: In addition to other

Voluntary Licensing: To encourage the transfer and

7|P a g e RLACO/DS ALES/NV ALDER AMA

4. The Philippine taxes on all payments relating to

Compulsory Licensing: issuance of a license by the

Assignment of inventions: An assignment may be of the

Mark: any visible sign capable of distinguishing the

Collective mark: any visible sign designated as such in

Trade name: name or designation identifying or

8|P a g e RLACO/DS ALES/NV ALDER AMA

How acquired: The rights in a mark shall be acquired

Contents of Trademark Application: (in Filipino or

9|P a g e RLACO/DS ALES/NV ALDER AMA

a. The name of the State with whose

Prior Use: not required before registration, however,

Declaration of Actual Use: must be filed within 3 years

Division of Application: Any application referring to

Issuance and Publication of Certificate: When the period

Certificate of Registration: prima facie evidence of the

10 | P a g e RLACO/DS ALES/NV ALDER AMA

1. Dominancy Test: focuses on the similarity of the

Well-known Mark: which is determined by competent