Overview of Intellectual

Property and Intellectual

Property Rights

Atty. Adrian S. Cristobal Jr.

Director General
Intellectual Property Office of the Philippines
(IP Philippines)
“ There is no doubt that
creativity is the most
important human resource of
all. Without creativity there
would be no progress, and
we would forever be
repeating the same
patterns.”

– Edward de Bono
Intellectual Property
describes ideas, inventions,
technologies, artworks, music
and literature, that are
intangible when first created,
but become valuable in tangible
form as products

- Dr. Kamil Idris

I. Importance of IP in the
Economy
 Total worldwide revenues for patent
licensing increased from U.S. $15 billion to
U.S. $110 billion between 1990-2000
(Source: Kamil Idris IP: A Power Tool for
Economic Growth)

 IT industry alone employs more than nine

(9) million people, raises more than U.S.
$700 billion in taxes per year, and grew by
26% between 1996-2000, creating 2.6
million new jobs and contributing US$6
trillion to economies worldwide.
(Source: Business Software Alliance)
 IP in the U.S today is valued at US $5
trillion to US $5.5 trillion – equivalent to
about 45% of the U.S. GDP and greater
than the GDP of other countries
(Robert J. Shapiro and Kevin Hasset, The
Economic Value of Intellectual Propert, 2005)

 Revenues from the U.S. biotechnology

industry increased from U.S. $8.billion in
1992 to U.S. $39.2 billion in 2003, and the
industry employed 198,300 as of
December 2003
(Source: Biotechnology Industry Organization)
 European Union: copyright industry
contributed more than 1,200B Euro to the
economy, produced value added of 450B
Euro, employed more than 5.2 million

 Coca Cola’s estimated brand value is $

67 Billion.Total brand valuation of 52
US companies in top 100 corporations
nearly $ 722 Billion

 Disney borrowed $ 400 million using its

copyright assets and $480 million using its
trademarks
“ In recent decades, the fraction of the
total output of the US economy that is
essentially conceptual rather than
physical has been rising. The trend has,
of necessity, shifted the emphasis in
asset valuation from physical property
to intellectual property and to the legal
rights inherent in intellectual property.”
(Chairman Alan Greenspan,
US Federal Reserve, 27 Feb 2004)
Correlation between IPR and Trade
 Positive two way relationship – data

show that trade in patents grew

almost as fast as trade in goods
between 1988 and 1996 ( IMF)
Correlation between IPR and national
competitiveness
 20 countries perceived with strong IP

systems - the top 27 in growth

competitiveness index
 20 countries perceived weak IP

systems ranked among the bottom

36 countries
(WEF,Global Competitiveness
Report,2004-05)
II. Forms of IP
 PATENTS

NOVELTY INVENTIVE STEP

INDUSTRIAL APPLICABILITY
UTILITY MODELS
INDUSTRIAL DESIGNS
LAYOUT DESIGN OF
INTEGRATED
CIRCUIT
TRADEMARKS
COPYRIGHT
COPYRIGHT
COPYRIGHT
 TRADE SECRETS/
SECRET FORMULATION
 III. Importance and
Potential of IP in the Philippines
 OUR INTANGIBLE WEALTH

• 68% increase in Trademark

applications ( 1998-2005)
• 51% increase in Patent
Applications for the same period
• Semiconductor and Electronics
 2004 – US$ 27B - 70% of our exports
 860 companies – 28% Filipino, 72% foreign
• ICT industry
 Outsourcing in global market est. US$140B
 BPO – US$350M offshore outsource software
services
• Software Industry
 More than 300 firms
 2004 – exported US$ 186M
 10000 IT professionals
• Creative sector (art,music, press and
literature, performance, design, etc)
 Contributes 4.85% of GDP
• Traditional Knowledge and Genetic
Resources
 9,253 plant species; 1309 animal species
 Sources of medicines (ex. Erythtomycin,
Philippine sea snail)
• Geographic Indications
 Local community and indigenous products
 STATE POLICIES
• The State shall protect and secure the
exclusive rights of scientists,
inventors, artists and other gifted
citizens to their intellectual
property and creations, particularly
when beneficial to the people, for
such period as may be provided by law.
(Art. XIV, Sec.3, Philippine Constitution)
Intellectual Property Code (R.A 8293)
Section 2. The State recognizes that an
effective intellectual and industrial policy
system is vital to the development of
domestic and creative activity, facilitates
transfer of technology, attracts foreign
investments and ensures market access
for products. It shall protect and secure the
exclusive rights of scientists, inventors,
artists and other gifted citizens to their
intellectual property and creations…
Intellectual Property Code (cont’d)
The use of intellectual property bears a social
function. To this end, the State shall promote
the diffusion of knowledge and
information for the promotion of national
development and progress and the
common good.
 OTHER LAWS

 Protection of Layout Designs of

Integrated Circuits (R.A 9150)
 Plant Varieties Act (R.A 9168 )

 Optical Media Act (9239)

MEDIUM TERM PHILIPPINE
DEVELOPMENT PLAN (2004-2010)
“Developing the country’s knowledge base
provides leverage to improve local access to
global sources of knowledge. The country’s
innovation system will be improved to meet the
challenges of globalization. Intellectual
property rights will be protected in a manner
that will both stimulate technological innovation
and encourage technology diffusion throughout
the economy. Scientific research in areas
strategic to national development, such as ICT,
biotechnology, materials science, and
manufacturing technologies will be pursued
based on the inputs and priorities of the private
sector, academe, and civil society.”
MEDIUM TERM PHILIPPINE
DEVELOPMENT PLAN (2004-2010)
“the development of information and
communications technology (ICT) will be
hastened with the end in view of making
the country a knowledge and software
development center and an e-service hub
of Asia. The administration is committed to
building the physical infrastructure that will
ensure wider, faster, reliable, and
affordable access to ICT resources and to
the Internet. Interconnectivity is a must.
Legal and judicial reforms will be pursued
to address problems related to intellectual
property rights and in support of e-
commerce”
MEDIUM TERM PHILIPPINE
DEVELOPMENT PLAN (2004-2010)
Strategies in Enhancing the policy and
legal environment:
“Strengthen the Intellectual Property
Office and embark on capacity building
programs for local enforcement agencies,
public prosecutors and judiciary in
Intellectual Property Protection (IPP), how it
is applied and enforced in the global
economy”
Constraints/Challenges
• Low awareness and understanding of the value
of intangible wealth or IP and the IP system
across all sectors. (Gradual change as local
enterprises are affected)
• IP not yet mainstreamed in socio-economic
policies and programs of different government
agencies (Also gradually changing, SMEs, S&T)
• Historically, emphasis of IPR has been on its
legal rights, not economic advantage.
 IP Philippines: What We Do
 Patent Grants
 Utility Model Registration
 Industrial Design Registration
 Trademark Registration
 Technology Transfer Licenses
 Administrative Adjudication for IPV/IPC
 Inter-agency coordination for enforcement
 Information and Education
 Copyright Support Services
 PHILIPPINES IP POLICY STRATEGY
• “Taking stock” of our IP Assets or
Intangible Wealth
(arts,design,TK,genetic resources,
agricultural research, etc)
• IP Education and Advocacy
• Institutional Capacity Building
• Commercialization of Inventions
• Social dimension (public health)
“ Ideas and innovations have become
the most important resource
replacing land, energy and raw
materials”
– The Economist
Thank you.
http://ipophil.gov.ph