BUSINESS PROTECTION CLAUSE

Patentable Inventions
Sec 21. New, inventive, and industrially applicable technical solutions to problems in human
activity, including products, processes, or improvements, are patentable.

Non-Patentable Inventions
Sec 22.
22. 1 Discoveries, scientific theories, and mathematical methods, particularly in drugs
and medicines, involve the discovery of new forms or properties of a known substance without
enhancing its efficacy, or the use of a known process without a new reactant.

This clause applies to various forms of a known substance, including salts, esters,
ethers, polymorphs, metaebolites, pure forms, isomers, mixtures, complexes, and derivatives,
unless significantly different in efficacy properties.

22. 2 This refers to the rules and methods used in mental acts, gaming, business, and
computer programs.

22.3 This provision does not apply to products and compositions used in surgical,
therapy, or diagnostic methods for treating the human or animal body.

22.4 This provision protects plant varieties and animal breeds, but does not apply to
micro-organisms or non-biological processes. Congress can consider enacting a law for sui
generis protection.

22.5 This text focuses on the topic of aesthetic creations.

22.6 This refers to any act that goes against public order or morality.

Elements of Patentability
• The law prescribes the following elements of patentability:
1. Novelty
2. Inventive Step
3. Industrial Applicability

Novelty
The first classification includes publicly available items, which must be submitted before
the filing date or priority date of the invention application. The second classification includes
patent applications, utility models, or industrial design registrations published in the Philippines
with a filing or priority date earlier than the application's filing date.
Filing date
Republic Act No. 8293 follows the "first-to-file" rule, abandoning the "First-to-Invent"
System of Republic Act No.165. The term "filing date" should be understood as the date the
application was filed, not the day it was filed.

The requirements include an

- indication of a Philippine patent,
- information identifying the applicant, and
- a description of the invention and claims in Filipino or English.

If any of these elements are not submitted within the specified period, the application is
considered withdrawn. If the filing date cannot be accorded, the applicant has the opportunity
to correct the deficiencies in accordance with implementing regulations. If the application does
not contain all elements, the filling date should be the date when all elements are received. If
deficiencies are not remedied within the prescribed time limit, the application is considered
withdrawn.

Priority date
SEC. 31: The term "priority date" is crucial in patent law due to the first-to-file rule. It
refers to the date when an application for patent is filed by someone who has previously
applied for the same invention in another country that offers similar privileges to Filipino
citizens. This applies to applications filed in the Philippines, provided the local application
asserts priority, is filed within 12 months of the earliest foreign application, and a certified copy
of the foreign application is filed within six months. The right of priority is only applicable when
there are two or more conflicting patent applications on the same invention. Possession of a
right of priority does not grant property rights in the absence of an actual patent.

Non-Prejudicial Disclosure
The concept of novelty in patent law requires that a new invention is not yet known to
anyone other than the inventor. Once disclosed to the public, this requirement may be
compromised. However, certain disclosures can still prevent application rejection due to lack of
novelty. These disclosures must be made within 12 months of the filing date or priority date,
and the disclosure was made by the inventor, a patent office, or a third party who obtained
the information directly or indirectly from the inventor.

In response to concerns about the term "third party" in section 25.1, a Memorandum Circular
No. 4, Series of 2002 was issued, clarifying that the term "third party" in the phrase "third party
which obtained information directly or indirectly from the inventor" should be considered
prejudicial. A prejudicial disclosure has the same adverse effect on novelty as a non-prejudicial
disclosure. This clarification clarifies that the term "third party" should not be used in the
context of foreign patent offices, including the World Intellectual Property Organization (WIPO).
Graham factor
The US Supreme Court's Graham factors, outlined in Graham, et al. v. John Deere Co. of
Kansan City, et al., 383 U.S. 1 (1966), determine obviousness and non-obviousness in patent
cases. Obviousness is determined by examining the scope and content of prior art, the level of
ordinary skill in art, differences between the claimed invention and prior art, and objective
evidence of non-obviousness. Examples of non-obviousness factors include commercial success,
long-felt but unsolved needs, and the failure of others.

Inventive Step
26. 1 Section 26 of the patenting process requires an inventive step if the invention is
not immediately apparent to a skilled person in the art, allowing it to be patented.
26.2 In the case of drugs and medicines, there is no inventive step if the invention results
from the discovery of a new form or property of a known substance that does not enhance its
known efficacy, or from the discovery of a new property or use for a known substance, or from
the use of a known process unless it results in a new product using at least one new reactant.

A skilled person in an art is considered an ordinary practitioner with knowledge of

common general knowledge, relevant references, and arts relevant to the specific problem the
inventor was involved in. They are assumed to have the normal means and capacity for routine
work and experimentation at their disposal.

Industrial Applicable
Section 27 states that an invention must be industrially applicable, as it must have
practical application in any industry for it to be truly useful, as an invention that remains in the
sphere of theories and principles is useless.

RIGHT TO PATENT
Ownership patent
The right to a patent belongs to the inventor, his heirs, or assigns. Joint ownership of the
patent can occur when two or more persons jointly made an invention. This property can be
acquired through succession or assignment, and can also be subject to joint ownership when
multiple persons have jointly made the invention.

First to first rule

The first to file rule states that a patent right belongs to the person who filed an
application for the invention, or the applicant with the earliest filing date or priority date, if two
or more applications are filed for the same invention. This rule applies only if at least two
persons made the invention separately and independently, otherwise joint ownership may
exist.

Inventions created pursuant to a Commission or Employment

 Section 30 of the US Code states that the patent owner, unless otherwise specified in
the contract, owns the invention created by the commissioning party. If the employee created
the invention during their employment contract, the patent belongs to the employee if the
inventive activity is not part of their regular duties, or the employer if the invention is the result
of their regular duties, unless there is an agreement otherwise.

Rights to priority
The right of priority is granted to patent applications filed by individuals who have previously
applied for the same invention in another country that grants similar privileges to Filipino
citizens. This right is considered valid if the local application claims priority, is filed within 12
months of the earliest foreign application, and a certified copy of the foreign application with an
English translation is filed within six months of filing in the Philippines.

Rights conferred by a patent

Section 71 of the USP outlines the exclusive rights granted by a patent. These rights include the
right to prevent unauthorized individuals or entities from using, manufacturing, selling, or
importing a product or a process based on the subject matter of the patent. Additionally,
patent owners have the right to assign or transfer the patent, and to enter into licensing
contracts for the same. This ensures that the patent remains protected and protected from
unauthorized use.

PROCEDURE FOR THE GRANT OF PATENT

12. 1 Procedure Outline

- Filing of the application

- Accordance of the filing date
- Formality examination
- Classification ang Search
- Publication of the application
- Substantive examination
- Grant of the patent
- Publication upon grant
- Issuance of the certificate

12.2 Filing of the Application

The patent application must be in Filipino or English, containing a request for a patent, a
description of the invention, necessary drawings, one or more claims, and an abstract. The
application must identify the inventor, and if the applicant is not the inventor, the Office may
require submission of the authority. The request must include the name, data, inventor, agent,
and title of the invention. The application must disclose the invention in a clear and complete
manner, allowing it to be carried out by a skilled person. If the application concerns a
microbiological process or product involving the use of a microorganism, the application must
be supplemented by a deposit with an international depository institution. The application must
contain one or more claims that define the matter for which protection is sought, with each
claim being clear and concise. The abstract should be a concise summary of the disclosure,
ideally no more than 150 words, allowing a clear understanding of the technical problem,
solution, and principal use of the invention.

12.3 Prohibited Matter

The application must not contain any statement that contradicts public order or
morality, disparages the products or processes of any person or entity other than the applicant,
or is irrelevant or unnecessary under the circumstances. If an application contains prohibited
matter, the Bureau of Patents will omit it when publishing the application, indicating the place
and number of words or drawing omitted.

12.4 Unity of Invention

The application should relate to one invention or a single general inventive concept. If
multiple independent inventions are claimed in one application, the Director may restrict the
application to a single invention. A later application for a divided invention is considered filed on
the same day as the first application, provided it is filed within four months after the
requirement to divide becomes final. Each divisional application must not go beyond the
disclosure in the initial application. A patent granted on an application that did not comply with
the unity of invention requirement cannot be canceled.

12.5 Accordance of Filing

See discussions under 9.3 Filing Date, supra.

12.6 Formality Examination

The formality examination of a Philippine patent application requires the applicant to
comply with certain requirements within a prescribed period. These requirements may include
priority documents, proof of authority, deed of assignment, payment of fees, signatures,
inventor identification, and formal drawings. If the formality examination reveals that the
drawings were filed after the application's filing date, the Bureau of Patent will notify the
applicant that the drawings and references to them will be deleted unless the applicant
requests a new filing date within two months. If the formality examination reveals that the
drawings were not filed, the Bureau of Patents will require the applicant to file them within two
months and inform them of the new filing date. If the drawings are not filed in due time, any
reference to them in the application will be deemed deleted.

12.7 Classification and Search

The patent examiner determines the novelty requirement of an application that meets
formal requirements. The Office uses the International Patent Classification for classification.
The Intellectual Property Search Report is created based on claims, descriptions, and drawings.
The report must mention available documents for assessing novelty and inventiveness of the
invention. It distinguishes between cited documents published before the priority claimed date,
between the priority claimed date and filing date, and on or after filing date. The search report
must classify the subject matter of the application according to the International Patent
Classification. The report may include documents cited in a search established in the
corresponding foreign application.
12.8 Publication of Patent Application
The patent application must be published in the IP0 Gazette, along with a search
document, after 18 months from the filing date or priority date. However, applicants can
request early publication if they submit a written waiver, establish a search report, and pay the
required fee. The application will not be published if it has been refused or withdrawn before
the termination of technical preparation for publication. The application must include
bibliographic data, a drawing, and an abstract. The Office will inform the applicant about the
publication date and the period for filing a substantive examination. After publication,
interested parties can inspect the application. The Director General, with the approval of the
secretary of trade and industry, may prohibit or restrict the publication if it would be
detrimental to the national security and interest of the Philippines.

12.9 Confidentiality Before Publication

A patent application and related documents must be kept confidential before
publication, requiring the applicant's consent. However, confidentiality in patent applications
under the Intellectual Property Code is not absolute, as a party may intervene after publication,
ensuring that the application remains confidential.

12. 10 Rights Conferred after Publication

Section 46 of the Patent Act grants patentees the rights conferred by a published patent
application after publication. The applicant has all the rights of a patentee under Section 76
against any person who exercised any rights conferred under Section 71 without their
authorization, provided they had actual knowledge that the invention was the subject matter of
a published application or received written notice that the invention was the subject matter of a
published application.

This provision is important as it confers certain rights to the application even before the actual
grant of approval. Section 76 is about remedies against patent infringement, but the remedy is
limited to civil action only, precluding any penal sanctions against the supposed infringer. The
persons liable under Section 46 must have either actual knowledge that the invention was a
subject matter of a published application or at least received written notice that the invention
was a subject matter of a published application subject to certain conditions.

Patentees or anyone possessing any right, title, or interest in and to the patented invention
whose rights have been infringed may bring a civil action before a court of competent
jurisdiction to recover from the infringer such damages sustained thereby, plus attorney's fees
and other expenses of litigation, and to secure an injunction for the protection of their rights. If
the damages are inadequate or cannot be readily ascertained with reasonable certainty, the
court may award damages equivalent to reasonable royalty.

The court may also order that the infringing goods, materials, and implements predominantly
used in the infringement be disposed outside the channels of commerce or destroyed without
compensation. Anyone who actively induces the infringement of a patent or provides the
infringer with a component of a patented product or product produced because of a patented
process knowing it to be especially adopted for infringing the patented invention and not
suitable for substantial non-infringing use shall be liable as a contributory infringer and be
jointly and severally liable with the infringer.

12.11 Observation by Third Parties

Third parties can submit written observations regarding the patentability of an invention post-
publication, which will be communicated to the applicant, who can then comment on them. The
Office will acknowledge and include these observations and comments in the application's file.

12.12 Substantive Examination

The applicant must submit a written request for a substantive examination within six months of
publication, following the requirements outlined in Sections 21 to 27 and Sections 32 to 39. Fee
payment is an integral part of the examination process, and withdrawal of the request is
irrevocable and does not allow for refund of any fees.

12.13 Law Contest

An ex parte proceeding in the Bureau of Patents is a law contest between the applicant and
the Examiner, with the inventor seeking the least possible monopoly in return for disclosure
and the applicant or their attorney aiming for as much monopoly as possible. The Examiner,
represented by the Bureau, is not supposed to look after the interests of an applicant but must
ensure that no patent issues are made for subject matter that is not patentable, disclosed in
prior inventions, and accessible to the public at large. The court acts as the adverse party in this
process.

12.14 Case of "Tough Love"

The Examiner's preliminary adverse actions can significantly impact a patent's chances of
standing in court. A hard-fought application can lead to stronger amendments and a prima facie
standing in court. The Office's authority to pass on applications and its decisions regarding
granting an application is presumed to be correct by the courts. However, a rejection by the
Examiner should not be taken literally, as the Examiner may not be actually rejecting the
applicant's invention but rather rejecting the applicant's claims. Examiners may make a blanket
rejection on references to prior art to be helpful to the applicant, allowing them to explain away
references and make changes to avoid them. This approach is more effective than waiting until
the patent is granted and involved in litigation.

12.15 Amendment of Application

The patent application can be amended during examination, provided it doesn't include new
matter outside the scope of disclosure. Amendments can be made after final rejection or
action, allowing cancellation of claims or complying with form requirements. Amendments
presenting rejected claims in better form for appeal consideration may be admitted. If
amendments touch the merits of the application after rejection or appeal, they can be admitted
with good reasons and not earlier presented.

12. 16 Grant of Patent

The grant of a patent is the ultimate goal of a patent application, which is granted if the
application meets legal requirements and implementing rules, including timely fee payment. A
patent takes effect from the date of publication in the IPO Gazette.

12.17 Refusal of the application

The rules outline that if an application is refused or denial, the applicant can appeal the decision
to the Director of Bureau of Patents. The final decisions of the Patent Examiner, who has
jurisdiction over all applications, can be appealed within four months of the notice. If an
applicant wishes to discuss a specific technical or scientific matter pending final action, they can
request a conference with the Examiner, which the Examiner has the discretion to grant or reply
to in writing.

12.18 Publication of Grant if Patent

The patent grant and related information must be published in the IPO Gazette within the
prescribed time, and interested parties can inspect the complete descriptions, claims, and
drawings.

12.19 Issuance of the certificate of Letters Patent

The patent must be issued in the name of the Philippines, under the Office's seal, signed by the
Director, and registered with the description, claims, and drawings.

12. 20 Term of patent

A patent's term is 20 years from the application's filing date, but it can be revoked if annual fees
aren't paid or if the patent is cancelled. After expiration, the monopoly ceases and the subject
matter becomes part of the public domain.

12.21 Annual Fees

The first annual fee on a patent is due on the expiration of four years from the date the
application is published, and on each subsequent anniversary. Payment can be made within
three months before the due date. The obligation to pay the annual fees terminates if the
application is withdrawn, refused, or cancelled. The publication date is the date when the IPO
Gazette containing the application is released for circulation. If the annual fee is not paid within
the prescribed time, the application is deemed withdrawn or the patent is considered lapsed. A
grace period of six months is granted for payment of the annual fee, with a prescribed surcharge
for delayed payment.

12.22 Surrender of Patent

The patent owner can surrender their patent or any claims to the Office for cancellation with
the consent of all persons with rights or interest in the patent and the invention. If a person
opposes the surrender, the Bureau will inform the proprietor and determine the issue. If the
Office determines the patent can be surrendered, the proprietor can accept the offer. The
patent ceases to have effect after acceptance, but no infringement action or compensation will
occur for government services.

12.23 Correction of Mistakes

The Director of Patent can correct any mistake in a patent, whether it's due to the Office's fault
or not, without fee, upon written petition from the patentee or assignee of record and tender of
the issued patent copy. Additionally, the Director can correct any mistake in a formal and
clerical patent, not due to the Office's fault.

12.24 Changes in Patents

The owner of a patent can request changes to limit its protection, correct obvious or clerical
errors, and correct errors made in good faith. However, requests must be made after two years
from the patent's grant and cannot affect third-party rights. Changes must not extend the
disclosure in the patent beyond the application filed. This section states that no change in the
patent can affect the rights of third parties relying on the patent.

12.25 Form and Publication of Amendments

A patent amendment or correction must be confirmed by a certificate, authenticated by the
Office seal and signed by the Director, attached to the patent. Notice of such amendment or
correction will be published in the IPO Gazette, and copies of the patent must include the
certificate.

CANCELLATION OF PATENT
13.1 Grounds
Patent registrations can be cancelled by interested parties upon payment of the required fee.
The grounds for cancellation include the invention being not new or patentable, the patent not
providing sufficient clear and complete disclosure, or the patent being contrary to public order
or morality. Cancellation can only be extreme if the grounds relate to some claims or parts of
claims.

13.2 Petition for Cancellation

The petition for cancellation must be written, verified by the petitioner or someone familiar
with the facts, specifying the grounds, including a statement of the facts to be relied upon, and
filed with the Office. Copies of printed publications or patents from other countries and
supporting documents must be attached.

13.3 Jurisdiction and Notice of Hearing

The Director of Legal Affairs has jurisdiction to hear a petition for cancellation. The Director of
Lens Affairs serves notice of the petition to the petitioner and all persons with rights or interests
in the patent and invention. The petition is published in the IP0 Gazette. In cases involving
highly technical issues, the Director of Legal Affairs may order a Committee to hear and decide
the petition, consisting of the Director of Legal Affairs as chairman and two experts in the
relevant technology field. The Committee's decision is appealable to the Director General.

13.4 Cancellation of the Patent

The Committee can cancel a patent or specific claims if a case for cancellation has been proven.
If the amendment made by the patentee during the cancellation proceedings meets the law's
requirements, the Committee may maintain the patent as amended, provided the printing fee is
paid within the time limit prescribed in the implementing rules and regulations. If the fee is not
paid, the patent should be revoked. If the patent is amended under Subsection 65.2, the Bureau
must publish the abstract, representative claims, and drawings.

13.5 Effect of Cancellation of Patent or Claim

The rights conferred by a patent or any specified claim that is cancelled will terminate, and the
Director of Legal Affairs' decision to cancel the patent or claim is immediate, unless the Director
General restricts this decision.

REMEDIES OF PERSONS DEPRIVED OF PATENT OWNERSHIP

14.1 Person Declared by Final Court Order as Having Right to the Patent
If a person declared by a final court order as having the right to a patent, they can execute the
application as their own, file a new patent application, request refusal, or seek cancellation of
the patent if one has already been issued within three months after the decision has become
final.

14.2 True and Actual Inventor

If a person who was deprived of a patent without consent or fraud is declared the true and
actual inventor, the court will order their substitution as patentee, cancel the patent, and award
damages in their favor if necessary.

14.3 Publication of the Court Order

The court must provide the Office with a copy of the court order or decision, which must be
published in the IPO Gazette within three months of its final and executory date.

14.4 Time to File Action in Court

Sections 67 and 68 require actions to be filed within one year of publication in accordance with
Sections 44 and 51, respectively.

REMEDIES AGAINST INFRINGEMENT

15.1 Rights Conferred by Patent

The rights granted by a patent depend on whether the subject matter is a product or a process.
If a product is owned, the patent owner has the exclusive right to prevent unauthorized use,
manufacture, or import of the product. If a process is owned, the patent owner has the
exclusive right to control the use of the process and its products, even those obtained indirectly.
Regardless of the subject matter, patent owners can assign, transfer, or conclude licensing
contracts for the product or process.

15.2 Civil Action for Infringement

Patent infringement occurs when a patented product or process is made, used, offered for sale,
sold, or imported without the patentee's authorization. However, Republic Act No. 9502, also
known as the "Universally Accessible Cheaper and Quality Medicines Act of 2008," does not
apply to cases covered by Sections 72.1 and 72,4 (Limitations of Patent Rights), Section 74 (Use
of Invention by Government), Section 93.6 (Compulsory Licensing), and Section 93-A
(Procedures on Issuance of a Special Compulsory License under the TRIPS Agreement) of the
Intellectual Property Code. A patentee or anyone with rights to the patented invention can
bring a civil action to recover damages, attorney's fees, and other litigation expenses. If
damages are inadequate or cannot be reasonably ascertained, the court may award damages
equivalent to reasonable royalty. The court may also order the infringing goods, materials, and
implements to be disposed of outside commerce channels or destroyed without compensation.

15.3 Infringement Action by a Foreign National

Foreign nationals or juridical entities who meet the requirements of Section 3 and are not
engaged in business in the Philippines can bring an action for patent infringement, regardless
of their existing business license. Section 3 states that any person domiciled or having a real
and effective industrial establishment in a country that is a party to any international
convention, treaty, or agreement related to intellectual property rights or unfair competition, or
extends reciprocal rights to nationals of the Philippines, is entitled to benefits to the extent
necessary to enforce such provisions.

15.4 Presumptions in Patent Infringement Actions

A patent owner can presume that an identical product was obtained through the use of a
patented process if the product is new or there is a substantial likelihood that the identical
product was made by the process. The court must protect the patent owner's manufacturing
and business secrets when ordering the defendant to prove the process is different from the
patented process. Damages cannot be recovered for infringement committed before the
infringer had known or had reasonable grounds to know of the patent. This provision creates a
presumption that the infringer knew the existence of the patent, providing valuable assistance
to the patent owner in their action against the person being sued for infringement.

15.5 Prescription in Action for Infringement

The text states that damages cannot be recovered for infringement acts committed more than
four years prior to the initiation of the infringement action.

15.6 Defenses in action for Infringement

In an infringement action, the defendant can argue the patent's invalidity or claim on grounds
for a cancellation petition under Section 61 (Sec. 81), along with other defenses.
15.7 Criminal Action for Infringement
If an infringement is repeated after a court's judgment, offenders are criminally liable and may
face imprisonment for six months to three years or a fine of 100,000 pesos to 300,000 pesos.
This action is prescribed within three years of the crime's commission. Criminal liability only
applies when the infringement is repeated, and the court has the discretion to determine the
punishment.
Module 2

LIMITATION OF PATENT RIGHTS

Patent owners have limitations, including the right to prevent third parties from
performing without their authorization, as per Section 72 of R.A. 8293, as amended by R.A.
9502, or the Universally Accessible Cheaper and Quality Medicines Act of 2008.

Section 72 of the Philippine Patent Law states that the owner of a patent cannot prevent third
parties from performing certain acts without their authorization, except in certain
circumstances. For example, if a patented product is used in the Philippines, the owner or their
express consent is required. However, the limitation on patent rights applies to drugs and
medicines once they have been introduced in the Philippines or anywhere else. The right to
import these drugs and medicines is available to any government agency or private third party.

72.2 The act can be done privately and non-commercially, provided it doesn't
significantly harm the patent owner's economic interests.

72.3 allows for exclusive use of an invention for scientific or educational purposes,
including related activities.

72.4 The Intellectual Property Office in the Philippines, in consultation with government
agencies, will issue rules and regulations for drugs and medicines that involve testing, using,
making, or selling the invention, including any related data, for purposes related to the
development and submission of information and issuance of approvals by government
regulatory agencies required under any law of the Philippines or another country regulating the
manufacture, construction, use, or sale of any product. The rules and regulations must be
issued within 120 days after the law's enactment.

72.5 states that a pharmacy or medical professional prepares a medicine according to a

medical prescription for individual cases, or acts concerning the prepared medicine.

72.6 The invention can be used in any ship, vessel, aircraft, or land vehicle from another
country entering the Philippines temporarily or accidentally, provided it is exclusively used for
the needs of the ship, vessel, aircraft, or land vehicle and not for manufacturing anything to be
sold within the Philippines.
Prior User
Section 73 states that a prior user who in good faith used or prepared to use the
invention in their enterprise or business before the filing date or priority date of the patent
application has the right to continue using it as planned within the territory where the patent
produces its effect.

The patent owner can only transfer or assign this right to the prior user if it is
transferred or assigned alongside their enterprise or business, or with the part of their
enterprise or business where use or preparations have been made.

Use by the Government

The government is generally required to respect patents as they are considered
property and protected under the Constitution, which guarantees no one can be deprived of
life, liberty, or property without due process of law.

Section 74 of the Philippine Code allows a government agency or third person

authorized by the government to exploit an invention without the patent owner's consent, if
the public interest, such as national security, nutrition, health, or other sectors, requires it. The
judicial or administrative body may also determine that the exploitation method is anti-
competitive. In the case of drugs and medicines, there may be a national emergency or extreme
urgency requiring the use of the invention. Public non-commercial use of the patent by the
patentee without satisfactory reason is also allowed. The demand for the patented article in the
Philippines is not being met to an adequate extent and on reasonable terms, as determined by
the Secretary of the Department of Health.

74.2 The use of a patent by the government or authorized third party is subject to
certain provisions, including notification in cases of national emergency or extreme urgency,
prompt notification in cases of public non-commercial use without satisfactory reason, and
prompt notification if the government or third party knows or has demonstrable ground to
know that a valid patent is or will be used by or for the government. If the demand for the
patented article in the Philippines is not being met to an adequate extent and on reasonable
terms, the right holder must be informed promptly. The scope and duration of such use must be
limited to the purpose for which it was authorized, and the use must be non-exclusive. The right
holder must be paid adequate remuneration in each case, considering the economic value of
the authorization. The existence of a national emergency or other circumstances of extreme
urgency is subject to the determination of the President of the Philippines for the need for such
use or exploitation.
Topic 3
GROUNDS FOR CANCELATION OF PATENT RIGHTS

Cancellation of Patent
The Intellectual Property office allows interested parties to cancel patent registrations
upon payment of a fee. The grounds for cancellation include the invention being not new or
patentable, the patent not providing clear and complete disclosure, or the patent being
contrary to public order or morality. Cancellation can only be done to certain parts of the claim,
unless the grounds for cancellation relate to the entire claim.

Effects of Cancellation of Patent or claim

The rights conferred by a patent or any specified claims that are cancelled will be
terminated immediately, unless the Director of Legal Affairs orders otherwise, and the notice of
cancellation will be published in the IPO Gazette.

Remedies of True and Actual Inventor

Section 68 of the patent law states that if a person who was deprived of a patent
without consent or fraud is declared the true and actual inventor, the court will order their
substitution as the patent holder or, at the true inventor's option, cancel the patent and award
damages in their favor.