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                                  REPUBLIC OF THE PHILIPPINES
                                  CONGRESS OF THE PHILIPPINES S. No. 1719
                                  Second Regular Session } H. No. 8098
                                  REPUBLIC ACT NO. 8293
                                  AN ACT PRESCRIBING THE INTELLECTUAL PROPERTY
                                  CODE AND ESTABLISHING THE INTELLECTUAL
                                  PROPERTY OFFICE, PROVIDING FOR ITS POWERS AND
                                  FUNCTIONS, AND FOR OTHER PURPOSES
                                  Be it enacted by the Senate and House of Representatives of the
                                  Philippines in Congress assembled:
                                  PART I
                                  THE INTELLECTUAL PROPERTY OFFICE
                                  SECTION 1. Title. – This Act shall be known as the
                                  "Intellectual Property Code of the Philippines."
                                  SEC. 2. Declaration of State Policy. – The State
                                  recognizes that an effective intellectual and industrial property
                                  system is vital to the development of domestic and creative activity,
                                  facilitates transfer of technology, attracts foreign investments,
                                  and ensures market access for our products. It 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 periods as
                                  provided in this Act.
                                  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.
                                  It is also the policy of the State to streamline administrative
                                  procedures of registering patents, trademarks and copyright, to
                                  liberalize the registration on the transfer of technology, and to
                                  enhance the enforcement of intellectual property rights in the
                                  Philippines. (n)
                                  551
                                  SEC. 3. International Conventions and Reciprocity. – Any
                                  person who is a national or who is domiciled or has a real and
                                  effective industrial establishment in a country which is a party
                                  to any convention, treaty or agreement relating to intellectual
                                  property rights or the repression of unfair competition, to which
                                  the Philippines is also a party, 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 by this Act. (n)
                                  SEC. 4. Definitions. – 4.1. The term "intellectual property
                                  rights" consists of:
                                  (a) Copyright and Related Rights;
                                  (b) Trademarks and Service Marks;
                                  (c) Geographic Indications;
                                  (d) Industrial Designs;
                                  (e) Patents;
                                  (f) Layout-Designs (Topographies) of Integrated Circuits;
                                  and
                                  (g) Protection of Undisclosed Information (n, TRIPS).
                                  4.2. The term "technology transfer arrangements" refers
                                  to contracts or agreements involving the transfer of systematic
                                  knowledge for the manufacture of a product, the application of a
                                  process, or rendering of a service including management contracts;
                                  and the transfer, assignment or licensing of all forms of intellectual
                                  property rights, including licensing of computer software except
                                  computer software developed for mass market.
                                  4.3. The term "Office" refers to the Intellectual Property
                                  Office created by this Act.
                                  4.4. The term "IPO Gazette" refers to the gazette published
                                  by the Office under this Act. (n)
                                  SEC. 5. Functions of the Intellectual Property Office (IPO).
                                  – 5.1. To administer and implement the State policies declared
                                  in this Act, there is hereby created the Intellectual Property Office
                                  (IPO) which shall have the following functions:
                                  (a) Examine applications for grant of letters patent for
                                  inventions and register utility models and industrial designs;
                                  (b) Examine applications for the registration of marks,
                                  geographic indication, integrated circuits;
                                  (c) Register technology transfer arrangements and settle
                                  disputes involving technology transfer payments covered by the
                                  provisions of Part II, Chapter IX on Voluntary Licensing and
                                  develop and implement strategies to promote and facilitate
                                  technology transfer;
                                  (d) Promote the use of patent information as a tool for
                                  technology development;
                                  (e) Publish regularly in its own publication the patents,
                                  marks, utility models and industrial designs, issued and approved,
                                  and the technology transfer arrangements registered;
                                  (f) Administratively adjudicate contested proceedings
                                  affecting intellectual property rights; and
                                  (g) Coordinate with other government agencies and the
                                  private sector efforts to formulate and implement plans and
                                  policies to strengthen the protection of intellectual property rights
                                  in the country.
                                  5.2. The Office shall have custody of all records, books,
                                  drawings, specifications, documents, and other papers and things
                                  relating to intellectual property rights applications filed with the
                                  Office. (n)
                                  SEC. 6. The Organizational Structure of the IPO. – 6.1.
                                  The Office shall be headed by a Director General who shall be
                                  assisted by two (2) Deputies Director General.
                                  6.2. The Office shall be divided into six (6) Bureaus, each
                                  of which shall be headed by a Director and assisted by an Assistant
                                  Director. These Bureaus are:
                                  (a) The Bureau of Patents;
                                  (b) The Bureau of Trademarks;
                                  (c) The Bureau of Legal Affairs;
                                  (d) The Documentation, Information and Technology
                                  Transfer Bureau;
                                  (e) The Management Information System and EDP Bureau;
                                  and
                                  (f) The Administrative, Financial and Personnel Services
                                  Bureau.
                                  6.3. The Director General, Deputies Director General,
                                  Directors and Assistant Directors shall be appointed by the
                                  President, and the other officers and employees of the Office by
                                  the Secretary of Trade and Industry, conformably with and under
                                  the Civil Service Law. (n)
                                  SEC. 7. The Director General and Deputies Director
                                  General. – 7.1. Functions. – The Director General shall exercise
                                  the following powers and functions:
                                  (a) Manage and direct all functions and activities of the
                                  Office, including the promulgation of rules and regulations to
                                  implement the objectives, policies, plans, programs and projects
                                  of the Office: Provided, That in the exercise of the authority to
                                  propose policies and standards in relation to the following: (1) the
                                  effective, efficient, and economical operations of the Office
                                  requiring statutory enactment; (2) coordination with other
                                  agencies of government in relation to the enforcement of
                                  intellectual property rights; (3) the recognition of attorneys,
                                  agents, or other persons representing applicants or other parties
                                  before the Office; and (4) the establishment of fees for the filing
                                  and processing of an application for a patent, utility model or
                                  industrial design or mark or a collective mark, geographic
                                  indication and other marks of ownership, and for all other services
                                  performed and materials furnished by the Office, the Director
                                  General shall be subject to the supervision of the Secretary of
                                  Trade and Industry;
                                  (b) Exercise exclusive appellate jurisdiction over all
                                  decisions rendered by the Director of Legal Affairs, the Director
                                  of Patents, the Director of Trademarks, and the Director of the
                                  Documentation, Information and Technology Transfer Bureau.
                                  The decisions of the Director General in the exercise of his appellate
                                  jurisdiction in respect of the decisions of the Director of Patents,
                                  and the Director of Trademarks shall be appealable to the Court
                                  of Appeals in accordance with the Rules of Court; and those in
                                  respect of the decisions of the Director of Documentation,
                                  Information and Technology Transfer Bureau shall be appealable
                                  to the Secretary of Trade and Industry; and
                                  (c) Exercise original jurisdiction to resolve disputes relating
                                  to the terms of a license involving the author's right to public
                                  performance or other communication of his work. The decisions
                                  of the Director General in these cases shall be appealable to the
                                  Secretary of Trade and Industry.
                                  7.2. Qualifications. – The Director General and the
                                  Deputies Director General must be natural born citizens of the
                                  Philippines, at least thirty-five (35) years of age on the day of
                                  their appointment, holders of a college degree, and of proven
                                  competence, integrity, probity and independence: Provided, That
                                  the Director General and at least one (1) Deputy Director General
                                  shall be members of the Philippine Bar who have engaged in the
                                  practice of law for at least ten (10) years: Provided, further,
                                  That in the selection of the Director General and the Deputies
                                  Director General, consideration shall be given to such
                                  qualifications as would result, as far as practicable, in the balanced
                                  representation in the Directorate General of the various fields of
                                  intellectual property.
                                  7.3. Term of Office. – The Director General and the
                                  Deputies Director General shall be appointed by the President for
                                  a term of five (5) years and shall be eligible for reappointment
                                  only once: Provided, That the first Director General shall have
                                  a first term of seven (7) years. Appointment to any vacancy shall
                                  be only for the unexpired term of the predecessor.
                                  7.4. The Office of the Director General. – The Office of the
                                  Director General shall consist of the Director General and the
                                  Deputies Director General, their immediate staff and such Offices
                                  and Services that the Director General will set up to support
                                  directly the Office of the Director General. (n)
                                  SEC. 8. The Bureau of Patents. – The Bureau of Patents
                                  shall have the following functions:
                                  8.1. Search and examination of patent applications and
                                  the grant of patents;
                                  8.2. Registration of utility models, industrial designs, and
                                  integrated circuits; and
                                  8.3. Conduct studies and researches in the field of patents
                                  in order to assist the Director General in formulating policies on
                                  the administration and examination of patents. (n)
                                  SEC. 9. The Bureau of Trademarks. – The Bureau of
                                  Trademarks shall have the following functions:
                                  9.1. Search and examination of the applications for the
                                  registration of marks, geographic indications and other marks of
                                  ownership and the issuance of the certificates of registration; and
                                  9.2. Conduct studies and researches in the field of
                                  trademarks in order to assist the Director General in formulating
                                  policies on the administration and examination of trademarks.
                                  (n)
                                  SEC. 10. The Bureau of Legal Affairs. – The Bureau of
                                  Legal Affairs shall have the following functions:
                                  10.1. Hear and decide opposition to the application for
                                  registration of marks; cancellation of trademarks; subject to the
                                  provisions of Section 64, cancellation of patents, utility models,
                                  and industrial designs; and petitions for compulsory licensing of
                                  patents;
                                  10.2. (a) Exercise original jurisdiction in administrative
                                  complaints for violations of laws involving intellectual property
                                  rights: Provided, That its jurisdiction is limited to complaints
                                  where the total damages claimed are not less than Two hundred
                                  thousand pesos (P200,000): Provided, further, That availment
                                  of the provisional remedies may be granted in accordance with
                                  the Rules of Court. The Director of Legal Affairs shall have the
                                  power to hold and punish for contempt all those who disregard
                                  orders or writs issued in the course of the proceedings. (n)
                                  (b) After formal investigation, the Director for Legal Affairs
                                  may impose one (1) or more of the following administrative
                                  penalties:
                                  (i) The issuance of a cease and desist order which shall
                                  specify the acts that the respondent shall cease and
                                  desist from and shall require him to submit a compliance
                                  report within a reasonable time which shall be fixed in
                                  the order;
                                  (ii) The acceptance of a voluntary assurance of compliance
                                  or discontinuance as may be imposed. Such voluntary
                                  assurance may include one (1) or more of the following:
                                  (1) An assurance to comply with the provisions of the
                                  intellectual property law violated;
                                  (2) An assurance to refrain from engaging in unlawful
                                  and unfair acts and practices subject of the formal
                                  investigation;
                                  (3) An assurance to recall, replace, repair, or refund
                                  the money value of defective goods distributed in
                                  commerce; and
                                  (4) An assurance to reimburse the complainant the
                                  expenses and costs incurred in prosecuting the case
                                  in the Bureau of Legal Affairs.
                                  The Director of Legal Affairs may also require the
                                  respondent to submit periodic compliance reports and file a bond
                                  to guarantee compliance of his undertaking;
                                  (iii) The condemnation or seizure of products which are
                                  subject of the offense. The goods seized hereunder shall
                                  be disposed of in such manner as may be deemed
                                  appropriate by the Director of Legal Affairs, such as by
                                  sale, donation to distressed local governments or to
                                  charitable or relief institutions, exportation, recycling
                                  into other goods, or any combination thereof, under such
                                  guidelines as he may provide;
                                  (iv) The forfeiture of paraphernalia and all real and
                                  personal properties which have been used in the
                                  commission of the offense;
                                  (v) The imposition of administrative fines in such amount
                                  as deemed reasonable by the Director of Legal Affairs,
                                  which shall in no case be less than Five thousand pesos
                                  (P5,000) nor more than One hundred fifty thousand pesos
                                  (P150,000). In addition, an additional fine of not more
                                  than One thousand pesos (P1,000) shall be imposed for
                                  each day of continuing violation;
                                  (vi) The cancellation of any permit, license, authority, or
                                  registration which may have been granted by the Office,
                                  or the suspension of the validity thereof for such period
                                  of time as the Director of Legal Affairs may deem
                                  reasonable which shall not exceed one (1) year;
                                  (vii) The withholding of any permit, license, authority, or
                                  registration which is being secured by the respondent
                                  from the Office;
                                  (viii) The assessment of damages;
                                  (ix) Censure; and
                                  (x) Other analogous penalties or sanctions. (Sec. 6, 7, 8,
                                  and 9, Executive Order No. 913 [1983]a)
                                  10.3. The Director General may by regulations establish
                                  the procedure to govern the implementation of this Section. (n)
                                  SEC. 11. The Documentation, Information and Technology
                                  Transfer Bureau. – The Documentation, Information and
                                  Technology Transfer Bureau shall have the following functions:
                                  11.1. Support the search and examination activities of
                                  the Office through the following activities:
                                  (a) Maintain and upkeep classification systems whether
                                  they be national or international such as the International Patent
                                  Classification (IPC) system;
                                  (b) Provide advisory services for the determination of
                                  search patterns;
                                  (c) Maintain search files and search rooms and reference
                                  libraries; and
                                  (d) Adapt and package industrial property information.
                                  11.2. Establish networks or intermediaries or regional
                                  representatives;
                                  11.3. Educate the public and build awareness on
                                  intellectual property through the conduct of seminars and lectures,
                                  and other similar activities;
                                  11.4. Establish working relations with research and
                                  development institutions as well as with local and international
                                  intellectual property professional groups and the like;
                                  11.5. Perform state-of-the-art searches;
                                  11.6. Promote the use of patent information as an
                                  effective tool to facilitate the development of technology in the
                                  country;
                                  11.7. Provide technical, advisory, and other services
                                  relating to the licensing and promotion of technology, and carry
                                  out an efficient and effective program for technology transfer;
                                  and
                                  11.8. Register technology transfer arrangements, and
                                  settle disputes involving technology transfer payments. (n)
                                  SEC. 12. The Management Information Services and EDP
                                  Bureau. – The Management Information Services and EDP
                                  Bureau shall:
                                  12.1. Conduct automation planning, research and
                                  development, testing of systems, contracts with firms,
                                  contracting, purchase and maintenance of equipment, design and
                                  maintenance of systems, user consultation, and the like; and
                                  12.2. Provide management information support and
                                  service to the Office. (n)
                                  SEC. 13. The Administrative, Financial and Human
                                  Resource Development Service Bureau. – 13.1. The Administrative
                                  Service shall: (a) Provide services relative to procurement and
                                  allocation of supplies and equipment, transportation, messengerial
                                  work, cashiering, payment of salaries and other Office's
                                  obligations, office maintenance, proper safety and security, and
                                  other utility services; and comply with government regulatory
                                  requirements in the areas of performance appraisal, compensation
                                  and benefits, employment records and reports;
                                  (b) Receive all applications filed with the Office and collect
                                  fees therefor; and
                                  (c) Publish patent applications and grants, trademark
                                  applications, and registration of marks, industrial designs, utility
                                  models, geographic indication, and lay-out-designs of integrated
                                  circuits registrations.
                                  13.2. The Patent and Trademark Administration
                                  Services shall perform the following functions among others:
                                  (a) Maintain registers of assignments, mergings, licenses,
                                  and bibliographic on patents and trademarks;
                                  (b) Collect maintenance fees, issue certified copies of
                                  documents in its custody and perform similar other activities;
                                  and
                                  (c) Hold in custody all the applications filed with the office,
                                  and all patent grants, certificate of registrations issued by the
                                  office, and the like.
                                  13.3. The Financial Service shall formulate and manage
                                  a financial program to ensure availability and proper utilization
                                  of funds; provide for an effective monitoring system of the financial
                                  operations of the Office; and
                                  13.4. The Human Resource Development Service shall
                                  design and implement human resource development plans and
                                  programs for the personnel of the Office; provide for present and
                                  future manpower needs of the organization; maintain high morale
                                  and favorable employee attitudes towards the organization through
                                  the continuing design and implementation of employee
                                  development programs. (n)
                                  SEC. 14. Use of Intellectual Property Rights Fees by the
                                  IPO. – 14.1. For a more effective and expeditious implementation
                                  of this Act, the Director General shall be authorized to retain,
                                  without need of a separate approval from any government agency,
                                  and subject only to the existing accounting and auditing rules
                                  and regulations, all the fees, fines, royalties and other charges,
                                  collected by the Office under this Act and the other laws that the
                                  Office will be mandated to administer, for use in its operations,
                                  like upgrading of its facilities, equipment outlay, human resource
                                  development, and the acquisition of the appropriate office space,
                                  among others, to improve the delivery of its services to the public.
                                  This amount, which shall be in addition to the Office's annual
                                  budget, shall be deposited and maintained in a separate account
                                  or fund, which may be used or disbursed directly by the Director
                                  General.
                                  14.2. After five (5) years from the coming into force of
                                  this Act, the Director General shall, subject to the approval of the
                                  Secretary of Trade and Industry, determine if the fees and charges
                                  mentioned in Subsection 14.1 hereof that the Office shall collect
                                  are sufficient to meet its budgetary requirements. If so, it shall
                                  retain all the fees and charges it shall collect under the same
                                  conditions indicated in said Subsection 14.1 but shall forthwith,
                                  cease to receive any funds from the annual budget of the National
                                  Government; if not, the provisions of said Subsection 14.1 shall
                                  continue to apply until such time when the Director General,
                                  subject to the approval of the Secretary of Trade and Industry,
                                  certifies that the above-stated fees and charges the Office shall
                                  collect are enough to fund its operations. (n)
                                  SEC. 15. Special Technical and Scientific Assistance. –
                                  The Director General is empowered to obtain the assistance
                                  of technical, scientific or other qualified officers and employees
                                  of other departments, bureaus, offices, agencies and
                                  instrumentalities of the Government, including corporations
                                  owned, controlled or operated by the Government, when deemed
                                  necessary in the consideration of any matter submitted to the
                                  Office relative to the enforcement of the provisions of this Act.
                                  (Sec. 3, R.A. No. 165a)
                                  SEC. 16. Seal of Office. – The Office shall have a seal, the
                                  form and design of which shall be approved by the Director General.
                                  (Sec. 4, R.A. No. 165a)
                                  SEC. 17. Publication of Laws and Regulations. – The
                                  Director General shall cause to be printed and make available for
                                  distribution, pamphlet copies of this Act, other pertinent laws,
                                  executive orders and information circulars relating to matters
                                  within the jurisdiction of the Office. (Sec. 5, R.A. No. 165a)
                                  SEC. 18. The IPO Gazette. – All matters required to be
                                  published under this Act shall be published in the Office's own
                                  publication to be known as the IPO Gazette. (n)
                                  SEC. 19. Disqualification of Officers and Employees of the
                                  Office. – All officers and employees of the Office shall not apply or
                                  act as an attorney or patent agent of an application for a grant of
                                  patent, for the registration of a utility model, industrial design or
                                  mark nor acquire, except by hereditary succession, any patent or
                                  utility model, design registration, or mark or any right, title or
                                  interest therein during their employment and for one (1) year
                                  thereafter. (Sec. 77, R.A. No. 165a)
                                  PART II
                                  THE LAW ON PATENTS
                                  CHAPTER I
                                  GENERAL PROVISIONS
                                  SEC. 20. Definition of Terms Used in Part II, The Law on
                                  Patents. – As used in Part II, the following terms shall have the
                                  following meanings:
                                  20.1. "Bureau" means the Bureau of Patents;
                                  20.2. "Director" means the Director of Patents;
                                  20.3. "Regulation" means the Rules of Practice in Patent
                                  Cases formulated by the Director of Patents and promulgated by
                                  the Director General;
                                  20.4. "Examiner" means the patent examiner;
                                  20.5. "Patent application" or "application" means an
                                  application for a patent for an invention except in Chapters XII
                                  and XIII, where "application" means an application for a utility
                                  model and an industrial design, respectively; and
                                  20.6. "Priority date" means the date of filing of the foreign
                                  application for the same invention referred to in Section 31 of this
                                  Act. (n)
                                  CHAPTER II
                                  PATENTABILITY
                                  SEC. 21. 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 shall be patentable.
                                  It may be, or may relate to, a product, or process, or an
                                  improvement of any of the foregoing. (Sec. 7, R.A. No. 165a)
                                  SEC. 22. Non-Patentable Inventions. – The following shall
                                  be excluded from patent protection:
                                  22.1. Discoveries, scientific theories and mathematical
                                  methods;
                                  22.2. Schemes, rules and methods of performing mental
                                  acts, playing games or doing business, and programs for
                                  computers;
                                  22.3. Methods for treatment of the human or animal
                                  body by surgery or therapy and diagnostic methods practiced on
                                  the human or animal body. This provision shall not apply to
                                  products and composition for use in any of these methods;
                                  22.4. Plant varieties or animal breeds or essentially
                                  biological process for the production of plants or animals. This
                                  provision shall not apply to micro-organisms and non-biological
                                  and microbiological processes.
                                  Provisions under this subsection shall not preclude
                                  Congress to consider the enactment of a law providing sui generis
                                  protection of plant varieties and animal breeds and a system of
                                  community intellectual rights protection;
                                  22.5. Aesthetic creations; and
                                  22.6. Anything which is contrary to public order or
                                  morality. (Sec. 8, R.A. No. 165a)
                                  SEC. 23. Novelty. – An invention shall not be considered
                                  new if it forms part of a prior art. (Sec. 9, R.A. No. 165a)
                                  SEC. 24. Prior Art. – Prior art shall consist of:
                                  24.1. 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
                                  24.2. The whole contents of an application for a patent,
                                  utility model, or industrial design registration, published in
                                  accordance with this Act, filed or effective in the Philippines,
                                  with a filing or priority date that is earlier than the filing or
                                  priority date of the application: Provided, That the application
                                  which has validly claimed the filing date of an earlier application
                                  under Section 31 of this Act, shall be prior art with effect as of the
                                  filing date of such earlier application: Provided, further, That
                                  the applicant or the inventor identified in both applications are
                                  not one and the same. (Sec. 9, R.A. No. 165a)
                                  SEC. 25. Non-Prejudicial Disclosure. – 25.1. The
                                  disclosure of information contained in the application during the
                                  twelve (12) months preceding the filing date or the priority date
                                  of the application shall not prejudice the applicant on the ground
                                  of lack of novelty if such disclosure was made by:
                                  (a) The inventor;
                                  (b) 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
                                  (c) A third party which obtained the information directly
                                  or indirectly from the inventor.
                                  25.2. For the purposes of Subsection 25.1, "inventor" also
                                  means any person who, at the filing date of application, had the
                                  right to the patent. (n)
                                  SEC. 26. Inventive Step. – An invention involves an
                                  inventive step if, having regard to prior art, it is not obvious to a
                                  person skilled in the art at the time of the filing date or priority
                                  date of the application claiming the invention. (n)
                                  SEC. 27. Industrial Applicability. – An invention that can
                                  be produced and used in any industry shall be industrially
                                  applicable. (n)
                                  CHAPTER III
                                  RIGHT TO A PATENT
                                  SEC. 28. Right to a Patent. – The right to a patent belongs
                                  to the inventor, his heirs, or assigns. When two (2) or more
                                  persons have jointly made an invention, the right to a patent
                                  shall belong to them jointly. (Sec. 10, R.A. No. 165a)
                                  SEC. 29. First to File Rule. – If two (2) or more persons
                                  have made the invention separately and independently of each
                                  other, the right to the patent shall belong to the person who filed
                                  an application for such invention, or where two (2) or more
                                  applications are filed for the same invention, to the applicant who
                                  has the earliest filing date or, the earliest priority date. (3rd
                                  sentence, Sec. 10, R.A. No. 165a)
                                  SEC. 30. Inventions Created Pursuant to a Commission.
                                  – 30.1. The person who commissions the work shall own the
                                  patent, unless otherwise provided in the contract.
                                  30.2. 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 a part of
                                  his regular duties even if the employee uses the time, facilities
                                  and materials of the employer; and
                                  (b) The employer, if the invention is the result of the
                                  performance of his regularly-assigned duties, unless there is an
                                  agreement, express or implied, to the contrary. (n)
                                  SEC. 31. 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:
                                  (a) the local application expressly claims priority; (b) it is filed
                                  within twelve (12) months from the date the earliest foreign
                                  application was filed; and (c) a certified copy of the foreign
                                  application together with an English translation is filed within
                                  six (6) months from the date of filing in the Philippines. (Sec. 15,
                                  R.A. No. 165a)
                                  CHAPTER IV
                                  PATENT APPLICATION
                                  SEC. 32. The Application. – 32.1. The patent application
                                  shall be in Filipino or English and shall contain the following:
                                  (a) A request for the grant of a patent;
                                  (b) A description of the invention;
                                  (c) Drawings necessary for the understanding of the
                                  invention;
                                  (d) One or more claims; and
                                  (e) An abstract.
                                  32.2. No patent may be granted unless the application
                                  identifies the inventor. If the applicant is not the inventor, the
                                  Office may require him to submit said authority. (Sec. 13, R. A.
                                  No. 165a)
                                  SEC. 33. Appointment of Agent or Representative. – An
                                  applicant who is not a resident of the Philippines must appoint
                                  and maintain a resident agent or representative in the Philippines
                                  upon whom notice or process for judicial or administrative
                                  procedure relating to the application for patent or the patent may
                                  be served. (Sec. 11, R.A. No. 165a)
                                  SEC. 34. The Request. – The request shall contain a
                                  petition for the grant of the patent, the name and other data of
                                  the applicant, the inventor and the agent and the title of the
                                  invention. (n)
                                  SEC. 35. Disclosure and description of the Invention. –
                                  35.1. Disclosure. – The application shall disclose the invention in
                                  a manner sufficiently clear and complete for it to be carried out
                                  by a person skilled in the art. Where the application concerns a
                                  microbiological process or the product thereof and involves the
                                  use of a micro-organism which cannot be sufficiently disclosed in
                                  the application in such a way as to enable the invention to be
                                  carried out by a person skilled in the art, and such material is
                                  not available to the public, the application shall be supplemented
                                  by a deposit of such material with an international depository
                                  institution.
                                  35.2. description. – The Regulations shall prescribe the
                                  contents of the description and the order of presentation. (Sec. 14,
                                  R.A. No. 165a)
                                  SEC. 36. The Claims. – 36.1. The application shall contain
                                  one (1) or more claims which shall define the matter for which
                                  protection is sought. Each claim shall be clear and concise, and
                                  shall be supported by the description.
                                  36.2. The Regulations shall prescribe the manner of the
                                  presentation of claims. (n)
                                  SEC. 37. The Abstract. – The abstract shall consist of a
                                  concise summary of the disclosure of the invention as contained
                                  in the description, claims and drawings in preferably not more
                                  than one hundred fifty (150) words. It must be drafted in a way
                                  which allows the clear understanding of the technical problem,
                                  the gist of the solution of that problem through the invention,
                                  and the principal use or uses of the invention. The abstract shall
                                  merely serve for technical information. (n)
                                  SEC. 38. Unity of Invention. – 38.1. The application shall
                                  relate to one (1) invention only or to a group of inventions forming
                                  a single general inventive concept.
                                  38.2. If several independent inventions which do not form
                                  a single general inventive concept are claimed in one application,
                                  the Director may require that the application be restricted to a
                                  single invention. A later application filed for an invention divided
                                  out shall be considered as having been filed on the same day as
                                  the first application: Provided, That the later application is filed
                                  within four (4) months after the requirement to divide becomes
                                  final, or within such additional time, not exceeding four (4)
                                  months, as may be granted: Provided, further, That each
                                  divisional application shall not go beyond the disclosure in the
                                  initial application.
                                  38.3. The fact that a patent has been granted on an
                                  application that did not comply with the requirement of unity of
                                  invention shall not be a ground to cancel the patent. (Sec. 17,
                                  R.A. No. 165a)
                                  SEC. 39. Information Concerning Corresponding Foreign
                                  Application for Patents. – The applicant shall, at the request of
                                  the Director, furnish him with the date and number of any
                                  application for a patent filed by him abroad, hereafter referred to
                                  as the "foreign application," relating to the same or essentially
                                  the same invention as that claimed in the application filed with
                                  the Office and other documents relating to the foreign application.
                                  (n)
                                  CHAPTER V
                                  PROCEDURE FOR GRANT OF PATENT
                                  SEC. 40. Filing Date Requirements. – 40.1. The filing date
                                  of a patent application shall be the date of receipt by the Office of
                                  at least the following elements:
                                  (a) An express or implicit indication that a Philippine patent
                                  is sought;
                                  (b) Information identifying the applicant; and
                                  (c) description of the invention and one (1) or more claims
                                  in Filipino or English.
                                  40.2. If any of these elements is not submitted within
                                  the period set by the Regulations, the application shall be
                                  considered withdrawn. (n)
                                  SEC. 41. According a Filing Date. – The Office shall
                                  examine whether the patent application satisfies the requirements
                                  for the grant of date of filing as provided in Section 40 hereof. If
                                  the date of filing cannot be accorded, the applicant shall be given
                                  an opportunity to correct the deficiencies in accordance with the
                                  implementing Regulations. If the application does not contain all
                                  the elements indicated in Section 40, the filing date should be
                                  that date when all the elements are received. If the deficiencies
                                  are not remedied within the prescribed time limit, the application
                                  shall be considered withdrawn. (n)
                                  SEC. 42. Formality Examination. – 42.1. After the patent
                                  application has been accorded a filing date and the required fees
                                  have been paid on time in accordance with the Regulations, the
                                  applicant shall comply with the formal requirements specified by
                                  Section 32 and the Regulations within the prescribed period,
                                  otherwise the application shall be considered withdrawn.
                                  42.2. The Regulations shall determine the procedure for
                                  the re-examination and revival of an application as well as the
                                  appeal to the Director of Patents from any final action by the
                                  examiner. (Sec. 16, R.A. No. 165a)
                                  SEC. 43. Classification and Search. – An application that
                                  has complied with the formal requirements shall be classified
                                  and a search conducted to determine the prior art. (n)
                                  SEC. 44. Publication of Patent Application. – 44.1. The
                                  patent application shall be published in the IPO Gazette together
                                  with a search document established by or on behalf of the Office
                                  citing any documents that reflect prior art, after the expiration of
                                  eighteen (18) months from the filing date or priority date.
                                  44.2. After publication of a patent application, any
                                  interested party may inspect the application documents filed with
                                  the Office.
                                  44.3. The Director General, subject to the approval of
                                  the Secretary of Trade and Industry, 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. (n)
                                  SEC. 45. Confidentiality Before Publication. – A patent
                                  application, which has not yet been published, and all related
                                  documents, shall not be made available for inspection without
                                  the consent of the applicant. (n)
                                  SEC. 46. Rights Conferred by a Patent Application After
                                  Publication. – The applicant shall have all the rights of a patentee
                                  under Section 76 against any person who, without his
                                  authorization, exercised any of the rights conferred under Section
                                  71 of this Act in relation to the invention claimed in the published
                                  patent application, as if a patent had been granted for that
                                  invention: Provided, That the said person had:
                                  46.1. Actual knowledge that the invention that he was
                                  using was the subject matter of a published application; or
                                  46.2. Received written notice that the invention that he
                                  was using was the subject matter of a published application being
                                  identified in the said notice by its serial number: Provided, That
                                  the action may not be filed until after the grant of a patent on the
                                  published application and within four (4) years from the
                                  commission of the acts complained of. (n)
                                  SEC. 47. Observation by Third Parties. – Following the
                                  publication of the patent application, any person may present
                                  observations in writing concerning the patentability of the
                                  invention. Such observations shall be communicated to the
                                  applicant who may comment on them. The Office shall
                                  acknowledge and put such observations and comment in the file
                                  of the application to which it relates. (n)
                                  SEC. 48. Request for Substantive Examination. – 48.1.
                                  The application shall be deemed withdrawn unless within six (6)
                                  months from the date of publication under Section 41, a written
                                  request to determine whether a patent application meets the
                                  requirements of Sections 21 to 27 and Sections 32 to 39 and the
                                  fees have been paid on time.
                                  48.2. Withdrawal of the request for examination shall
                                  be irrevocable and shall not authorize the refund of any fee. (n)
                                  SEC. 49. Amendment of Application. – An applicant may
                                  amend the patent application during examination: Provided,
                                  That such amendment shall not include new matter outside the
                                  scope of the disclosure contained in the application as filed. (n)
                                  SEC. 50. Grant of Patent. – 50.1. If the application meets
                                  the requirements of this Act, the Office shall grant the patent:
                                  Provided, That all the fees are paid on time.
                                  50.2. If the required fees for grant and printing are not
                                  paid in due time, the application shall be deemed to be withdrawn.
                                  50.3. A patent shall take effect on the date of the
                                  publication of the grant of the patent in the IPO Gazette. (Sec.
                                  18, R.A. No. 165a)
                                  SEC. 51. Refusal of the Application. – 51.1. The final order
                                  of refusal of the examiner to grant the patent shall be appealable
                                  to the Director in accordance with this Act.
                                  51.2. The Regulations shall provide for the procedure by
                                  which an appeal from the order of refusal from the Director shall
                                  be undertaken. (n)
                                  SEC. 52. Publication Upon Grant of Patent. – 52.1. The
                                  grant of the patent together with other related information shall
                                  be published in the IPO Gazette within the time prescribed by
                                  the Regulations.
                                  52.2. Any interested party may inspect the complete
                                  description, claims, and drawings of the patent on file with the
                                  Office. (Sec. 18, R.A. No. 165a)
                                  SEC. 53. Contents of Patent. – The patent shall be issued
                                  in the name of the Republic of the Philippines under the seal of
                                  the Office and shall be signed by the Director, and registered
                                  together with the description, claims, and drawings, if any, in
                                  books and records of the Office. (Secs. 19 and 20, R.A. No. 165a)
                                  SEC. 54. Term of Patent. – The term of a patent shall be
                                  twenty (20) years from the filing date of the application. (Sec. 21,
                                  R.A. No. 165a)
                                  SEC. 55. Annual Fees. – 55.1. To maintain the patent
                                  application or patent, an annual fee shall be paid upon the
                                  expiration of four (4) years from the date the application was
                                  published pursuant to Section 44 hereof, and on each subsequent
                                  anniversary of such date. Payment may be made within three
                                  (3) months before the due date. The obligation to pay the annual
                                  fees shall terminate should the application be withdrawn, refused,
                                  or cancelled.
                                  55.2. If the annual fee is not paid, the patent application
                                  shall be deemed withdrawn or the patent considered as lapsed
                                  from the day following the expiration of the period within which
                                  the annual fees were due. A notice that the application is deemed
                                  withdrawn or the lapse of a patent for non-payment of any annual
                                  fee shall be published in the IPO Gazette and the lapse shall be
                                  recorded in the Register of the Office.
                                  55.3. A grace period of six (6) months shall be granted
                                  for the payment of the annual fee, upon payment of the prescribed
                                  surcharge for delayed payment. (Sec. 22, R.A. No. 165a)
                                  SEC. 56. Surrender of Patent. – 56.1. The owner of the
                                  patent, with the consent of all persons having grants or licenses
                                  or other right, title or interest in and to the patent and the
                                  invention covered thereby, which have been recorded in the Office,
                                  may surrender his patent or any claim or claims forming part
                                  thereof to the Office for cancellation.
                                  56.2. A person may give notice to the Office of his
                                  opposition to the surrender of a patent under this section, and if
                                  he does so, the Bureau shall notify the proprietor of the patent
                                  and determine the question.
                                  56.3. If the Office is satisfied that the patent may
                                  properly be surrendered, he may accept the offer and, as from the
                                  day when notice of his acceptance is published in the IPO Gazette,
                                  the patent shall cease to have effect, but no action for infringement
                                  shall lie and no right compensation shall accrue for any use of
                                  the patented invention before that day for the services of the
                                  government. (Sec. 24, R.A. No. 165a)
                                  SEC. 57. Correction of Mistakes of the Office. – The
                                  Director shall have the power to correct, without fee, any mistake
                                  in a patent incurred through the fault of the Office when clearly
                                  disclosed in the records thereof, to make the patent conform to
                                  the records. (Sec. 25, R.A. No. 165)
                                  SEC. 58. Correction of Mistake in the Application. – On
                                  request of any interested person and payment of the prescribed
                                  fee, the Director is authorized to correct any mistake in a patent
                                  of a formal and clerical nature, not incurred through the fault of
                                  the Office. (Sec. 26, R.A. No. 165a)
                                  SEC. 59. Changes in Patents. – 59.1. The owner of a patent
                                  shall have the right to request the Bureau to make the changes
                                  in the patent in order to:
                                  (a) Limit the extent of the protection conferred by it;
                                  (b) Correct obvious mistakes or to correct clerical errors;
                                  and
                                  (c) Correct mistakes or errors, other than those referred
                                  to in letter (b), made in good faith: Provided, That where the
                                  change would result in a broadening of the extent of protection
                                  conferred by the patent, no request may be made after the
                                  expiration of two (2) years from the grant of a patent and the
                                  change shall not affect the rights of any third party which has
                                  relied on the patent, as published.
                                  59.2. No change in the patent shall be permitted under
                                  this section, where the change would result in the disclosure
                                  contained in the patent going beyond the disclosure contained in
                                  the application filed.
                                  59.3. If, and to the extent to which the Office changes
                                  the patent according to this section, it shall publish the same. (n)
                                  SEC. 60. Form and Publication of Amendment. – An
                                  amendment or correction of a patent shall be accomplished by a
                                  certificate of such amendment or correction, authenticated by
                                  the seal of the Office and signed by the Director, which certificate
                                  shall be attached to the patent. Notice of such amendment or
                                  correction shall be published in the IPO Gazette and copies of the
                                  patent kept or furnished by the Office shall include a copy of the
                                  certificate of amendment or correction. (Sec. 27, R.A. 165)
                                  CHAPTER VI
                                  CANCELLATION OF PATENTS AND
                                  SUBSTITUTION OF PATENTEE
                                  SEC. 61. Cancellation of Patents. – 61.1. Any interested
                                  person may, upon payment of the required fee, petition to cancel
                                  the patent or any claim thereof, or parts of the claim, on any of
                                  the following grounds:
                                  (a) That what is claimed as the invention is not new or
                                  patentable;
                                  (b) That the patent does not disclose the invention in a
                                  manner sufficiently clear and complete for it to be carried out by
                                  any person skilled in the art; or
                                  (c) That the patent is contrary to the public order or
                                  morality.
                                  61.2. Where the grounds for cancellation relate to some
                                  of the claims or parts of the claim, cancellation may be effected to
                                  such extent only. (Secs. 28 and 29, R.A. No. 165a)
                                  SEC. 62. Requirement of the Petition. – The petition for
                                  cancellation shall be in writing, verified by the petitioner or by
                                  any person in his behalf who knows the facts, specify the grounds
                                  upon which it is based, include a statement of the facts to be
                                  relied upon, and filed with the Office. Copies of printed
                                  publications or of patents of other countries, and other supporting
                                  documents mentioned in the petition shall be attached thereto,
                                  together with the translation thereof in English, if not in the
                                  English language. (Sec. 30, R.A. No. 165)
                                  SEC. 63. Notice of Hearing. – Upon filing of a petition for
                                  cancellation, the Director of Legal Affairs shall forthwith serve
                                  notice of the filing thereof upon the patentee and all persons having
                                  grants or licenses, or any other right, title or interest in and to
                                  the patent and the invention covered thereby, as appears of record
                                  in the Office, and of notice of the date of hearing thereon on such
                                  persons and the petitioner. Notice of the filing of the petition
                                  shall be published in the IPO Gazette. (Sec. 31, R.A. No. 165a)
                                  SEC. 64. Committee of Three. – In cases involving highly
                                  technical issues, on motion of any party, the Director of Legal
                                  Affairs may order that the petition be heard and decided by a
                                  committee composed of the Director of Legal Affairs as chairman
                                  and two (2) members who have the experience or expertise in the
                                  field of technology to which the patent sought to be cancelled
                                  relates. The decision of the committee shall be appealable to the
                                  Director General. (n)
                                  SEC. 65. Cancellation of the Patent. – 65.1. If the Committee
                                  finds that a case for cancellation has been proved, it shall order the
                                  patent or any specified claim or claims thereof cancelled.
                                  65.2. If the Committee finds that, taking into
                                  consideration the amendment made by the patentee during the
                                  cancellation proceedings, the patent and the invention to which
                                  it relates meet the requirement of this Act, it may decide to
                                  maintain the patent as amended: Provided, That the fee for
                                  printing of a new patent is paid within the time limit prescribed
                                  in the Regulations.
                                  65.3. If the fee for the printing of a new patent is not
                                  paid in due time, the patent should be revoked.
                                  65.4. If the patent is amended under Subsection 65.2
                                  hereof, the Bureau shall, at the same time as it publishes the
                                  mention of the cancellation decision, publish the abstract,
                                  representative claims and drawings indicating clearly what the
                                  amendments consist of. (n)
                                  SEC. 66. Effect of Cancellation of Patent or Claim. – The
                                  rights conferred by the patent or any specified claim or claims
                                  cancelled shall terminate. Notice of the cancellation shall be
                                  published in the IPO Gazette. Unless restrained by the Director
                                  General, the decision or order to cancel by Director of Legal Affairs
                                  shall be immediately executory even pending appeal. (Sec. 32,
                                  R.A. No. 165a)
                                  CHAPTER VII
                                  REMEDIES OF A PERSON WITH
                                  A RIGHT TO A PATENT
                                  SEC. 67. Patent Application by Persons Not Having the
                                  Right to a Patent. – 67.1. If a person referred to in Section 29
                                  other than the applicant is declared by final court order or decision
                                  as having the right to the patent, such person may, within three
                                  (3) months after the decision has become final:
                                  (a) Prosecute the application as his own application in place
                                  of the applicant;
                                  (b) File a new patent application in respect of the same
                                  invention;
                                  (c) Request that the application be refused; or
                                  (d) Seek cancellation of the patent, if one has already been
                                  issued.
                                  67.2. The provisions of Subsection 38.2 shall apply
                                  mutatis mutandis to a new application filed under Subsection
                                  67.1(b). (n)
                                  SEC. 68. 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. (Sec. 33, R.A. No. 165a)
                                  SEC. 69. Publication of the Court Order. – The court shall
                                  furnish the Office a copy of the order or decision referred to in
                                  Sections 67 and 68, which shall be published in the IPO Gazette
                                  within three (3) months from the date such order or decision
                                  became final and executory, and shall be recorded in the register
                                  of the Office. (n)
                                  SEC. 70. Time to File Action in Court. – The actions
                                  indicated in Sections 67 and 68 shall be filed within one (1) year
                                  from the date of publication made in accordance with Sections 44
                                  and 51, respectively. (n)
                                  CHAPTER VIII
                                  RIGHTS OF PATENTEES AND
                                  INFRINGEMENT OF PATENTS
                                  SEC. 71. Rights Conferred by Patent. – 71.1. A patent
                                  shall confer on its owner the following exclusive rights:
                                  (a) 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;
                                  (b) 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.
                                  71.2. Patent owners shall also have the right to assign,
                                  or transfer by succession the patent, and to conclude licensing
                                  contracts for the same. (Sec. 37, R.A. No. 165a)
                                  SEC. 72. Limitations of Patent Rights. – The owner of a
                                  patent has no right to prevent third parties from performing,
                                  without his authorization, the acts referred to in Section 71 hereof
                                  in the following circumstances:
                                  72.1. Using a patented product which has been put on
                                  the market in the Philippines by the owner of the product, or
                                  with his express consent, insofar as such use is performed after
                                  that product has been so put on the said market;
                                  72.2. Where the act is done privately and on a noncommercial
                                  scale or for a non-commercial purpose: Provided,
                                  That it does not significantly prejudice the economic interests of
                                  the owner of the patent;
                                  72.3. Where the act consists of making or using
                                  exclusively for the purpose of experiments that relate to the subject
                                  matter of the patented invention;
                                  72.4. Where the act consists of the preparation for
                                  individual cases, in a pharmacy or by a medical professional, of a
                                  medicine in accordance with a medical prescription or acts
                                  concerning the medicine so prepared;
                                  72.5. 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. Secs. 38 and 39, R.A.
                                  No. 165a)
                                  SEC. 73. Prior User. – 73.1. Notwithstanding Section 72
                                  hereof, 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.
                                  73.2. 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. (Sec. 40, R.A. No. 165a)
                                  SEC. 74. Use of Invention by Government. – 74.1. A
                                  Government agency or third person authorized by the Government
                                  may exploit the invention even without agreement of the patent
                                  owner where:
                                  (a) 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; or
                                  (b) A judicial or administrative body has determined that
                                  the manner of exploitation, by the owner of the patent or his
                                  licensee, is anti-competitive.
                                  74.2. The use by the Government, or third person
                                  authorized by the Government shall be subject, mutatis mutandis,
                                  to the conditions set forth in Sections 95 to 97 and 100 to 102.
                                  (Sec. 41, R.A. No. 165a)
                                  SEC. 75. Extent of Protection and Interpretation of
                                  Claims. – 75.1. The extent of protection conferred by the patent
                                  shall be determined by the claims, which are to be interpreted in
                                  the light of the description and drawings.
                                  75.2. For the purpose of determining the extent of
                                  protection conferred by the patent, due account shall be taken of
                                  elements which are equivalent to the elements expressed in the
                                  claims, so that a claim shall be considered to cover not only all
                                  the elements as expressed therein, but also equivalents. (n)
                                  SEC. 76. Civil Action for Infringement. – 76.1. 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 constitutes patent infringement.
                                  76.2. Any patentee, 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 his rights.
                                  76.3. If the damages are inadequate or cannot be readily
                                  ascertained with reasonable certainty, the court may award by
                                  way of damages a sum equivalent to reasonable royalty.
                                  76.4. The court may, according to the circumstances of
                                  the case, award damages in a sum above the amount found as
                                  actual damages sustained: Provided, That the award does not
                                  exceed three (3) times the amount of such actual damages.
                                  76.5. The court may, in its discretion, order that the
                                  infringing goods, materials and implements predominantly used
                                  in the infringement be disposed of outside the channels of
                                  commerce or destroyed, without compensation.
                                  76.6. Anyone who actively induces the infringement of a
                                  patent or provides the infringer with a component of a patented
                                  product or of a product produced because of a patented process
                                  knowing it to be especially adopted for infringing the patented
                                  invention and not suitable for substantial non-infringing use shall
                                  be liable as a contributory infringer and shall be jointly and
                                  severally liable with the infringer. (Sec. 42, R.A. No. 165a)
                                  SEC. 77. Infringement Action by a Foreign National. –
                                  Any foreign national or juridical entity who meets the requirements
                                  of Section 3 and not engaged in business in the Philippines, to
                                  which a patent has been granted or assigned under this Act, may
                                  bring an action for infringement of patent, whether or not it is
                                  licensed to do business in the Philippines under existing law.
                                  (Sec. 41-A, R.A. No. 165a)
                                  SEC. 78. Process Patents; Burden of Proof. – If the subject
                                  matter of a patent is a process for obtaining a product, any identical
                                  product shall be presumed to have been obtained through the use
                                  of the patented process if the product is new or there is substantial
                                  likelihood that the identical product was made by the process and
                                  the owner of the patent has been unable despite reasonable efforts,
                                  to determine the process actually used. In ordering the defendant
                                  to prove that the process to obtain the identical product is different
                                  from the patented process, the court shall adopt measures to
                                  protect, as far as practicable, his manufacturing and business
                                  secrets. (n)
                                  SEC. 79. Limitation of Action for Damages. – No damages
                                  can be recovered for acts of infringement committed more than
                                  four (4) years before the institution of the action for infringement.
                                  (Sec. 43, R.A. No. 165)
                                  SEC. 80. Damages; Requirement of Notice. – Damages
                                  cannot be recovered for acts of infringement committed before
                                  the infringer had known, or had reasonable grounds to know of
                                  the patent. It is presumed that the infringer had known of the
                                  patent if on the patented product, or on the container or package
                                  in which the article is supplied to the public, or on the advertising
                                  material relating to the patented product or process, are placed
                                  the words "Philippine Patent" with the number of the patent.
                                  (Sec. 44, R.A. No. 165a)
                                  SEC. 81. Defenses in Action for Infringement. – In an
                                  action for infringement, the defendant, in addition to other defenses
                                  available to him, may show the invalidity of the patent, or any
                                  claim thereof, on any of the grounds on which a petition of
                                  cancellation can be brought under Section 61 hereof. (Sec. 45,
                                  R.A. No. 165)
                                  SEC. 82. Patent Found Invalid May be Cancelled. – In an
                                  action for infringement, if the court shall find the patent or any
                                  claim to be invalid, it shall cancel the same, and the Director of
                                  Legal Affairs upon receipt of the final judgment of cancellation by
                                  the court, shall record that fact in the register of the Office and
                                  shall publish a notice to that effect in the IPO Gazette. (Sec. 46,
                                  R.A. No. 165a)
                                  SEC. 83. Assessor in Infringement Action. – 83.1. Two (2)
                                  or more assessors may be appointed by the court. The assessors
                                  shall be possessed of the necessary scientific and technical
                                  knowledge required by the subject matter in litigation. Either
                                  party may challenge the fitness of any assessor proposed for
                                  appointment.
                                  83.2. Each assessor shall receive a compensation in an
                                  amount to be fixed by the court and advanced by the complaining
                                  party, which shall be awarded as part of his costs should he prevail
                                  in the action. (Sec. 47, R.A. No. 165a)
                                  SEC. 84. Criminal Action for Repetition of Infringement.
                                  – If infringement is repeated by the infringer or by anyone in
                                  connivance with him after finality of the judgment of the court
                                  against the infringer, the offenders shall, without prejudice to
                                  the institution of a civil action for damages, be criminally liable
                                  therefor and, upon conviction, shall suffer imprisonment for the
                                  period of not less than six (6) months but not more than three (3)
                                  years and/or a fine of not less than One hundred thousand pesos
                                  (P100,000) but not more than Three hundred thousand pesos
                                  (P300,000), at the discretion of the court. The criminal action
                                  herein provided shall prescribe in three (3) years from the date of
                                  the commission of the crime. (Sec. 48, R.A. No. 165a)
                                  CHAPTER IX
                                  VOLUNTARY LICENSING
                                  SEC. 85. Voluntary License Contract. – 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 this Chapter. (n)
                                  SEC. 86. Jurisdiction to Settle Disputes on Royalties. –
                                  The Director of the Documentation, Information and Technology
                                  Transfer Bureau shall exercise quasi-judicial jurisdiction in the
                                  settlement of disputes between parties to a technology transfer
                                  arrangement arising from technology transfer payments,
                                  including the fixing of appropriate amount or rate of royalty. (n)
                                  SEC. 87. Prohibited Clauses. – Except in cases under
                                  Section 91, the following provisions shall be deemed prima facie
                                  to have an adverse effect on competition and trade:
                                  87.1. Those which impose upon the licensee the obligation
                                  to acquire from a specific source capital goods, intermediate
                                  products, raw materials, and other technologies, or of permanently
                                  employing personnel indicated by the licensor;
                                  87.2. Those pursuant to which the licensor reserves the
                                  right to fix the sale or resale prices of the products manufactured
                                  on the basis of the license;
                                  87.3. Those that contain restrictions regarding the
                                  volume and structure of production;
                                  87.4. Those that prohibit the use of competitive
                                  technologies in a non-exclusive technology transfer agreement;
                                  87.5. Those that establish a full or partial purchase
                                  option in favor of the licensor;
                                  87.6. Those that obligate the licensee to transfer for free
                                  to the licensor the inventions or improvements that may be
                                  obtained through the use of the licensed technology;
                                  87.7. Those that require payment of royalties to the
                                  owners of patents for patents which are not used;
                                  87.8. Those that prohibit the licensee to export the
                                  licensed product unless justified for the protection of the legitimate
                                  interest of the licensor such as exports to countries where exclusive
                                  licenses to manufacture and/or distribute the licensed product(s)
                                  have already been granted;
                                  87.9. Those which restrict the use of the technology
                                  supplied after the expiration of the technology transfer
                                  arrangement, except in cases of early termination of the
                                  technology transfer arrangement due to reason(s) attributable to
                                  the licensee;
                                  87.10. Those which require payments for patents and
                                  other industrial property rights after their expiration, termination
                                  arrangement;
                                  87.11. Those which require that the technology recipient
                                  shall not contest the validity of any of the patents of the technology
                                  supplier;
                                  87.12. Those which restrict the research and development
                                  activities of the licensee designed to absorb and adapt the
                                  transferred technology to local conditions or to initiate research
                                  and development programs in connection with new products,
                                  processes or equipment;
                                  87.13. Those which prevent the licensee from adapting
                                  the imported technology to local conditions, or introducing
                                  innovation to it, as long as it does not impair the quality standards
                                  prescribed by the licensor;
                                  87.14. Those which exempt the licensor for liability for
                                  non-fulfillment of his responsibilities under the technology transfer
                                  arrangement and/or liability arising from third party suits brought
                                  about by the use of the licensed product or the licensed technology;
                                  and
                                  87.15. Other clauses with equivalent effects. (Sec. 33-C
                                  (2), R.A. 165a)
                                  SEC. 88. Mandatory Provisions. – The following provisions
                                  shall be included in voluntary license contracts:
                                  88.1. 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;
                                  36
                                  88.2. Continued access to improvements in techniques
                                  and processes related to the technology shall be made available
                                  during the period of the technology transfer arrangement;
                                  88.3. 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
                                  88.4. The Philippine taxes on all payments relating to
                                  the technology transfer arrangement shall be borne by the licensor.
                                  (n)
                                  SEC. 89. Rights of Licensor. – In the absence of any
                                  provision to the contrary in the technology transfer arrangement,
                                  the grant of a license shall not prevent the licensor from granting
                                  further licenses to third person nor from exploiting the subject
                                  matter of the technology transfer arrangement himself. (Sec. 33-
                                  B, R.A. 165a)
                                  SEC. 90. Rights of Licensee. – The licensee shall be entitled
                                  to exploit the subject matter of the technology transfer
                                  arrangement during the whole term of the technology transfer
                                  arrangement. (Sec. 33-C (1), R.A. 165a)
                                  SEC. 91. Exceptional Cases. – In exceptional or meritorious
                                  cases where substantial benefits will accrue to the economy, such
                                  as high technology content, increase in foreign exchange earnings,
                                  employment generation, regional dispersal of industries and/or
                                  substitution with or use of local raw materials, or in the case of
                                  Board of Investments, registered companies with pioneer status,
                                  exemption from any of the above requirements may be allowed by
                                  the Documentation, Information and Technology Transfer Bureau
                                  after evaluation thereof on a case by case basis. (n)
                                  SEC. 92. Non-Registration with the Documentation,
                                  Information and Technology Transfer Bureau. – Technology
                                  transfer arrangements that conform with the provisions of Sections
                                  86 and 87 need not be registered with the Documentation,
                                  Information and Technology Transfer Bureau. Non-conformance
                                  with any of the provisions of Sections 87 and 88, however, shall
                                  automatically render the technology transfer arrangement
                                  unenforceable, unless said technology transfer arrangement is
                                  approved and registered with the Documentation, Information
                                  and Technology Transfer Bureau under the provisions of Section
                                  91 on exceptional cases. (n)
                                  CHAPTER X
                                  COMPULSORY LICENSING
                                  SEC. 93. Grounds for Compulsory Licensing. – The
                                  Director of Legal Affairs may grant a license to exploit a patented
                                  invention, even without the agreement of the patent owner, in
                                  favor of any person who has shown his capability to exploit the
                                  invention, under any of the following circumstances:
                                  93.1. National emergency or other circumstances of
                                  extreme urgency;
                                  93.2. 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; or
                                  93.3. 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; or
                                  93.4. In case of public non-commercial use of the patent
                                  by the patentee, without satisfactory reason;
                                  93.5. 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. (Secs. 34, 34-A, 34-B, R.A. No. 165a)
                                  SEC. 94. Period for Filing a Petition for a Compulsory
                                  License. – 94.1. A compulsory license may not be applied for on
                                  the ground stated in Subsection 93.5 before the expiration of a
                                  period of four (4) years from the date of filing of the application or
                                  three (3) years from the date of the patent whichever period expires
                                  last.
                                  94.2. A compulsory license which is applied for on any of
                                  the grounds stated in Subsections 93.2, 93.3, and 93.4 and Section
                                  97 may be applied for at any time after the grant of the patent.
                                  (Sec. 34(1), R.A. No. 165)
                                  SEC. 95. Requirement to Obtain a License on Reasonable
                                  Commercial Terms. – 95.1. The license will only be granted after
                                  the petitioner has made efforts to obtain authorization from the
                                  patent owner on reasonable commercial terms and conditions but
                                  such efforts have not been successful within a reasonable period
                                  of time.
                                  95.2. The requirement under Subsection 95.1 shall not
                                  apply in the following cases:
                                  (a) Where the petition for compulsory license seeks to
                                  remedy a practice determined after judicial or administrative
                                  process to be anti-competitive;
                                  (b) In situations of national emergency or other
                                  circumstances of extreme urgency; and
                                  (c) In cases of public non-commercial use.
                                  95.3. In situations of national emergency or other
                                  circumstances of extreme urgency, the right holder shall be notified
                                  as soon as reasonably practicable.
                                  95.4. In the case of public non-commercial use, where
                                  the government or contractor, without making a patent search,
                                  knows or has demonstrable grounds to know that a valid patent
                                  is or will be used by or for the government, the right holder shall
                                  be informed promptly. (n)
                                  SEC. 96. Compulsory Licensing of Patents Involving Semi-
                                  Conductor Technology. – In the case of compulsory licensing of
                                  patents involving semi-conductor technology, the license may only
                                  be granted in case of public non-commercial use or to remedy a
                                  practice determined after judicial or administrative process to be
                                  anti-competitive. (n)
                                  SEC. 97. Compulsory License Based on Interdependence
                                  of Patents. – If the invention protected by a patent, hereafter
                                  referred to as the "second patent," within the country cannot be
                                  worked without infringing another patent, hereafter referred to
                                  as the "first patent," granted on a prior application or benefiting
                                  from an earlier priority, a compulsory license may be granted to
                                  the owner of the second patent to the extent necessary for the
                                  working of his invention, subject to the following conditions:
                                  97.1. The invention claimed in the second patent involves
                                  an important technical advance of considerable economic
                                  significance in relation to the first patent;
                                  97.2. The owner of the first patent shall be entitled to a
                                  cross-license on reasonable terms to use the invention claimed in
                                  the second patent;
                                  97.3. The use authorized in respect of the first patent
                                  shall be non-assignable except with the assignment of the second
                                  patent; and
                                  97.4. The terms and conditions of Sections 95, 96 and 98
                                  to 100 of this Act. (Sec. 34-C, R.A. No. 165a)
                                  SEC. 98. Form and Contents of Petition. – The petition
                                  for compulsory licensing must be in writing, verified by the
                                  petitioner and accompanied by payment of the required filing fee.
                                  It shall contain the name and address of the petitioner as well as
                                  those of the respondents, the number and date of issue of the
                                  patent in connection with which compulsory license is sought,
                                  the name of the patentee, the title of the invention, the statutory
                                  grounds upon which compulsory license is sought, the ultimate
                                  facts constituting the petitioner's cause of action, and the relief
                                  prayed for. (Sec. 34-D, R.A. No. 165)
                                  SEC. 99. Notice of Hearing. – 99.1. Upon filing of a
                                  petition, the Director of Legal Affairs shall forthwith serve notice
                                  of the filing thereof upon the patent owner and all persons having
                                  grants or licenses, or any other right, title or interest in and to
                                  the patent and invention covered thereby as appears of record in
                                  the Office, and of notice of the date of hearing thereon, on such
                                  persons and petitioner. The resident agent or representative
                                  appointed in accordance with Section 33 hereof, shall be bound to
                                  accept service of notice of the filing of the petition within the
                                  meaning of this Section.
                                  99.2. In every case, the notice shall be published by the
                                  said Office in a newspaper of general circulation, once a week for
                                  three (3) consecutive weeks and once in the IPO Gazette at
                                  applicant's expense. (Sec. 34-E, R.A. No. 165)
                                  SEC. 100. Terms and Conditions of Compulsory License.
                                  – The basic terms and conditions including the rate of royalties of
                                  a compulsory license shall be fixed by the Director of Legal Affairs
                                  subject to the following conditions:
                                  100.1. The scope and duration of such license shall be
                                  limited to the purpose for which it was authorized;
                                  100.2. The license shall be non-exclusive;
                                  100.3. The license shall be non-assignable, except with
                                  that part of the enterprise or business with which the invention
                                  is being exploited;
                                  100.4. Use of the subject matter of the license shall be
                                  devoted predominantly for the supply of the Philippine market:
                                  Provided, That this limitation shall not apply where the grant of
                                  the license is based on the ground that the patentee's manner of
                                  exploiting the patent is determined by judicial or administrative
                                  process, to be anti-competitive.
                                  100.5. The license may be determined upon proper showing
                                  that circumstances which led to its grant have ceased to exist
                                  and are unlikely to recur: Provided, That adequate protection
                                  shall be afforded to the legitimate interest of the licensee; and
                                  100.6. The patentee shall be paid adequate remuneration
                                  taking into account the economic value of the grant or
                                  authorization, except that in cases where the license was granted
                                  to remedy a practice which was determined after judicial or
                                  administrative process, to be anti-competitive, the need to correct
                                  the anti-competitive practice may be taken into account in fixing
                                  the amount of remuneration. (Sec. 35-B, R.A.No. 165a)
                                  SEC. 101. Amendment, Cancellation, Surrender of
                                  Compulsory License. – 101.1. Upon the request of the patentee
                                  or the licensee, the Director of Legal Affairs may amend the
                                  decision granting the compulsory license, upon proper showing of
                                  new facts or circumstances justifying such amendment.
                                  101.2. Upon the request of the patentee, the said Director
                                  may cancel the compulsory license:
                                  (a) If the ground for the grant of the compulsory license no
                                  longer exists and is unlikely to recur;
                                  (b) If the licensee has neither begun to supply the domestic
                                  market nor made serious preparation therefor;
                                  (c) If the licensee has not complied with the prescribed
                                  terms of the license.
                                  101.3. The licensee may surrender the license by a written
                                  declaration submitted to the Office.
                                  101.4. The said Director shall cause the amendment,
                                  surrender, or cancellation in the Register, notify the patentee,
                                  and/or the licensee, and cause notice thereof to be published in
                                  the IPO Gazette. (Sec. 35-D, R.A. No. 165a)
                                  SEC. 102. Licensee's Exemption from Liability. – Any
                                  person who works a patented product, substance and/or process
                                  under a license granted under this Chapter, shall be free from
                                  any liability for infringement: Provided, however, That in the
                                  case of voluntary licensing, no collusion with the licensor is proven.
                                  This is without prejudice to the right of the rightful owner of the
                                  patent to recover from the licensor whatever he may have received
                                  as royalties under the license. (Sec. 35-E, R.A. No. 165a)
                                  CHAPTER XI
                                  ASSIGNMENT AND TRANSMISSION OF RIGHTS
                                  SEC. 103. Transmission of Rights. – 103.1. Patents or
                                  applications for patents and invention to which they relate, shall
                                  be protected in the same way as the rights of other property under
                                  the Civil Code.
                                  103.2. Inventions and any right, title or interest in and
                                  to patents and inventions covered thereby, may be assigned or
                                  transmitted by inheritance or bequest or may be the subject of a
                                  license contract. (Sec. 50, R.A. No. 165a)
                                  SEC. 104. 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. (Sec. 51, R.A. No. 165)
                                  SEC. 105. Form of Assignment. – The assignment 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. (Sec. 52, R.A. No. 165)
                                  SEC. 106. Recording. – 106.1. The Office shall record
                                  assignments, licenses and other instruments relating to the
                                  transmission of any right, title or interest in and to inventions,
                                  and patents or application for patents or inventions to which they
                                  relate, which are presented in due form to the Office for
                                  registration, in books and records kept for the purpose. The
                                  original documents together with a signed duplicate thereof shall
                                  be filed, and the contents thereof should be kept confidential. If
                                  the original is not available, an authenticated copy thereof in
                                  duplicate may be filed. Upon recording, the Office shall retain
                                  the duplicate, return the original or the authenticated copy to the
                                  party who filed the same and notice of the recording shall be
                                  published in the IPO Gazette.
                                  106.2. Such instruments shall be void as against any
                                  subsequent purchaser or mortgagee for valuable consideration
                                  and without notice, unless, it is so recorded in the Office, within
                                  three (3) months from the date of said instrument, or prior to the
                                  subsequent purchase or mortgage. (Sec. 53, R.A. No. 165a)
                                  SEC. 107. Rights of Joint Owners. – If two (2) or more
                                  persons jointly own a patent and the invention covered thereby,
                                  either by the issuance of the patent in their joint favor or by
                                  reason of the assignment of an undivided share in the patent and
                                  invention or by reason of the succession in title to such share,
                                  each of the joint owners shall be entitled to personally make, use,
                                  sell, or import the invention for his own profit: Provided, however,
                                  That neither of the joint owners shall be entitled to grant licenses
                                  or to assign his right, title or interest or part thereof without the
                                  consent of the other owner or owners, or without proportionally
                                  dividing the proceeds with such other owner or owners. (Sec. 54,
                                  R.A. No. 165)
                                  CHAPTER XII
                                  REGISTRATION OF UTILITY MODELS
                                  SEC. 108. Applicability of Provisions Relating to Patents.
                                  – 108.1. Subject to Section 109, the provisions governing patents
                                  shall apply, mutatis mutandis, to the registration of utility models.
                                  108.2. Where the right to a patent conflicts with the
                                  right to a utility model registration in the case referred to in
                                  Section 29, the said provision shall apply as if the word "patent"
                                  were replaced by the words "patent or utility model registration."
                                  (Sec. 55, R.A. No. 165a)
                                  SEC. 109. Special Provisions Relating to Utility Models.
                                  – 109.1. (a) An invention qualifies for registration as a utility
                                  model if it is new and industrially applicable.
                                  (b) Section 21, "Patentable Inventions," shall apply except
                                  the reference to inventive step as a condition of protection.
                                  109.2. Sections 43 to 49 shall not apply in the case of
                                  applications for registration of a utility model.
                                  109.3. A utility model registration shall expire, without
                                  any possibility of renewal, at the end of the seventh year after the
                                  date of the filing of the application.
                                  109.4. In proceedings under Sections 61 to 64, the utility
                                  model registration shall be cancelled on the following grounds:
                                  (a) That the claimed invention does not qualify for
                                  registration as a utility model and does not meet the requirements
                                  of registrability, in particular having regard to Subsection 109.1
                                  and Sections 22, 23, 24 and 27;
                                  (b) That the description and the claims do not comply with
                                  the prescribed requirements;
                                  (c) That any drawing which is necessary for the
                                  understanding of the invention has not been furnished;
                                  (d) That the owner of the utility model registration is not
                                  the inventor or his successor in title. (Secs. 55, 56, and 57, R.A.
                                  No. 165a)
                                  SEC. 110. Conversion of Patent Applications or
                                  Applications for Utility Model Registration. – 110.1. At any time
                                  before the grant or refusal of a patent, an applicant for a patent
                                  may, upon payment of the prescribed fee, convert his application
                                  into an application for registration of a utility model, which shall
                                  be accorded the filing date of the initial application. An application
                                  may be converted only once.
                                  110.2. At any time before the grant or refusal of a utility
                                  model registration, an applicant for a utility model registration
                                  may, upon payment of the prescribed fee, convert his application
                                  into a patent application, which shall be accorded the filing date
                                  of the initial application. (Sec. 58, R.A. No. 165a)
                                  SEC. 111. Prohibition against Filing of Parallel
                                  Applications. – An applicant may not file two (2) applications for
                                  the same subject, one for utility model registration and the other
                                  for the grant of a patent whether simultaneously or consecutively.
                                  (Sec. 59, R.A. No. 165a)
                                  CHAPTER XIII
                                  INDUSTRIAL DESIGN
                                  SEC. 112. Definition of Industrial Design. – An industrial
                                  design is any composition of lines or colors or any threedimensional
                                  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. (Sec. 55, R.A. No. 165a)
                                  SEC. 113. Substantive Conditions for Protection. – 113.1.
                                  Only industrial designs that are new or original shall benefit
                                  from protection under this Act.
                                  113.2. Industrial designs dictated essentially by technical
                                  or functional considerations to obtain a technical result or those
                                  that are contrary to public order, health or morals shall not be
                                  protected. (n)
                                  SEC. 114. Contents of the Application. – 114.1. Every
                                  application for registration of an industrial design shall contain:
                                  (a) A request for registration of the industrial design;
                                  (b) Information identifying the applicant;
                                  (c) An indication of the kind of article of manufacture or
                                  handicraft to which the design shall be applied;
                                  (d) A representation of the article of manufacture or
                                  handicraft by way of drawings, photographs or other adequate
                                  graphic representation of the design as applied to the article of
                                  manufacture or handicraft which clearly and fully discloses those
                                  features for which design protection is claimed; and
                                  (e) The name and address of the creator, or where the
                                  applicant is not the creator, a statement indicating the origin of
                                  the right to the industrial design registration.
                                  114.2. The application may be accompanied by a specimen
                                  of the article embodying the industrial design and shall be subject
                                  to the payment of the prescribed fee. (n)
                                  SEC. 115. Several Industrial Designs in One Application.
                                  – Two (2) or more industrial designs may be the subject of the
                                  same application: Provided, That they relate to the same subclass
                                  of the International Classification or to the same set or
                                  composition of articles. (n)
                                  SEC. 116. Examination. – 116.1. The Office shall accord
                                  as the filing date the date of receipt of the application containing
                                  indications allowing the identity of the applicant to be established
                                  and a representation of the article embodying the industrial design
                                  or a pictorial representation thereof.
                                  116.2. If the application does not meet these requirements
                                  the filing date should be that date when all the elements specified
                                  in Section 105 are filed or the mistakes corrected. Otherwise, if
                                  the requirements are not complied within the prescribed period,
                                  the application shall be considered withdrawn.
                                  116.3. After the application has been accorded a filing date
                                  and the required fees paid on time, the applicant shall comply
                                  with the requirements of Section 114 within the prescribed period,
                                  otherwise the application shall be considered withdrawn.
                                  116.4. The Office shall examine whether the industrial
                                  design complies with requirements of Section 112 and Subsections
                                  113.2 and 113.3. (n)
                                  SEC. 117. Registration. – 117.1. Where the Office finds
                                  that the conditions referred to in Section 113 are fulfilled, it shall
                                  order that registration be effected in the industrial design register
                                  and cause the issuance of an industrial design certificate of
                                  registration, otherwise, it shall refuse the application.
                                  117.2. The form and contents of an industrial design
                                  certificate shall be established by the Regulations: Provided,
                                  That the name and address of the creator shall be mentioned in
                                  every case.
                                  117.3 Registration shall be published in the form and
                                  within the period fixed by the Regulations.
                                  117.4. The Office shall record in the register any change
                                  in the identity of the proprietor of the industrial design or his
                                  representative, if proof thereof is furnished to it. A fee shall be
                                  paid, with the request to record the change in the identity of the
                                  proprietor. If the fee is not paid, the request shall be deemed not
                                  to have been filed. In such case, the former proprietor and the
                                  former representative shall remain subject to the rights and
                                  obligations as provided in this Act.
                                  117.5. Anyone may inspect the Register and the files of
                                  registered industrial designs including the files of cancellation
                                  proceedings. (n)
                                  SEC. 118. The Term of Industrial Design Registration. –
                                  118.1. The registration of an industrial design shall be for a period
                                  of five (5) years from the filing date of the application.
                                  118.2. The registration of an industrial design may be
                                  renewed for not more than two (2) consecutive periods of five (5)
                                  years each, by paying the renewal fee.
                                  118.3. The renewal fee shall be paid within twelve (12)
                                  months preceding the expiration of the period of registration.
                                  However, a grace period of six (6) months shall be granted for
                                  payment of the fees after such expiration, upon payment of a
                                  surcharge.
                                  118.4. The Regulations shall fix the amount of renewal
                                  fee, the surcharge and other requirements regarding the recording
                                  of renewals of registration.
                                  SEC. 119. Application of Other Sections and Chapters. –
                                  119.1. The following provisions relating to patents shall apply
                                  mutatis mutandis to an industrial design registration:
                                  Section 21- Novelty;
                                  Section 24- Prior art: Provided, That the disclosure is
                                  contained in printed documents or in any tangible form;
                                  Section 25- Non-prejudicial Disclosure;
                                  Section 27- Inventions Created Pursuant to a Commission;
                                  Section 28- Right to a Patent;
                                  Section 29- First to File Rule;
                                  Section 31- Right of Priority: Provided, That the
                                  application for industrial design shall be filed within
                                  six (6) months from the earliest filing date of the
                                  corresponding foreign application;
                                  Section 33- Appointment of Agent or Representative;
                                  Section 51- Refusal of the Application;
                                  Sections 56 to 60- Surrender, Correction of and Changes
                                  in Patent;
                                  Chapter VII- Remedies of a Person with a Right to Patent;
                                  Chapter VIII- Rights of Patentees and Infringement of
                                  Patents; and
                                  Chapter XI- Assignment and Transmission of Rights.
                                  119.2. If the essential elements of an industrial design
                                  which is the subject of an application have been obtained from
                                  the creation of another person without his consent, protection
                                  under this Chapter cannot be invoked against the injured party.
                                  (n)
                                  SEC. 120. Cancellation of Design Registration. – 120.1.
                                  At any time during the term of the industrial design registration,
                                  any person upon payment of the required fee, may petition the
                                  Director of Legal Affairs to cancel the industrial design on any of
                                  the following grounds:
                                  (a) If the subject matter of the industrial design is not
                                  registrable within the terms of Sections 112 and 113;
                                  (b) If the subject matter is not new; or
                                  (c) If the subject matter of the industrial design extends
                                  beyond the content of the application as originally filed.
                                  120.2. Where the grounds for cancellation relate to a part
                                  of the industrial design, cancellation may be effected to such extent
                                  only. The restriction may be effected in the form of an alteration
                                  of the effected features of the design. (n)
                                  PART III
                                  THE LAW ON TRADEMARKS, SERVICE MARKS
                                  AND TRADE NAMES
                                  SEC. 121. Definitions. – As used in Part III, the following
                                  terms have the following meanings:
                                  121.1. "Mark" means any visible sign capable of
                                  distinguishing the goods (trademark) or services (service mark)
                                  of an enterprise and shall include a stamped or marked container
                                  of goods; (Sec. 38, R.A. No. 166a)
                                  121.2. "Collective mark" means 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; (Sec. 40, R.A. No. 166a)
                                  121.3. "Trade name" means the name or designation
                                  identifying or distinguishing an enterprise; (Sec. 38, R.A. No.
                                  166a)
                                  121.4. "Bureau" means the Bureau of Trademarks;
                                  121.5. "Director" means the Director of Trademarks;
                                  121.6. "Regulations" mean the Rules of Practice in
                                  Trademarks and Service Marks formulated by the Director of
                                  Trademarks and approved by the Director General; and
                                  121.7. "Examiner" means the trademark examiner. (Sec.
                                  38, R.A. No. 166a)
                                  SEC. 122. How Marks are Acquired. – The rights in a
                                  mark shall be acquired through registration made validly in
                                  accordance with the provisions of this law. (Sec. 2-A, R.A. No.
                                  166a)
                                  SEC. 123. Registrability. – 123.1. A mark cannot be
                                  registered if it:
                                  (a) Consists of 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;
                                  (b) 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;
                                  (c) 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;
                                  (d) Is identical with a registered mark belonging to a
                                  different proprietor or a mark with an earlier filing or priority
                                  date, in respect of:
                                  (i) The same goods or services, or
                                  (ii) Closely related goods or services, or
                                  (iii)If it nearly resembles such a mark as to be likely to
                                  deceive or cause confusion;
                                  (e) Is identical with, or confusingly similar to, or constitutes
                                  a translation of 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, as being
                                  already the mark of a person other than the applicant for
                                  registration, and used for identical or similar goods or services:
                                  Provided, That in determining whether a mark is well-known,
                                  account shall be taken of the knowledge of the relevant sector of
                                  the public, rather than of the public at large, including knowledge
                                  in the Philippines which has been obtained as a result of the
                                  promotion of the mark;
                                  (f) Is identical with, or confusingly similar to, or constitutes
                                  a translation of a mark considered well-known in accordance with
                                  the preceding paragraph, 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: Provided, That
                                  use of the 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;
                                  (g) Is likely to mislead the public, particularly as to the
                                  nature, quality, characteristics or geographical origin of the goods
                                  or services;
                                  (h) Consists exclusively of signs that are generic for the
                                  goods or services that they seek to identify;
                                  (i) Consists exclusively of signs or of indications that have
                                  become customary or usual to designate the goods or services in
                                  everyday language or in bona fide and established trade practice;
                                  (j) Consists exclusively of signs or of indications that may
                                  serve in trade to designate the kind, quality, quantity, intended
                                  purpose, value, geographical origin, time or production of the goods
                                  or rendering of the services, or other characteristics of the goods
                                  or services;
                                  (k) Consists of shapes that may be necessitated by technical
                                  factors or by the nature of the goods themselves or factors that
                                  affect their intrinsic value;
                                  (l) Consists of color alone, unless defined by a given form;
                                  or
                                  (m) Is contrary to public order or morality.
                                  123.2. As regards signs or devices mentioned in
                                  paragraphs (j), (k), and (l), nothing shall prevent the registration
                                  of any such sign or device which has become distinctive in relation
                                  to the goods for which registration is requested as a result of the
                                  use that have been made of it in commerce in the Philippines.
                                  The Office may accept as prima facie evidence that the mark has
                                  become distinctive, as used in connection with the applicant's
                                  goods or services in commerce, proof of substantially exclusive
                                  and continuous use thereof by the applicant in commerce in the
                                  Philippines for five (5) years before the date on which the claim of
                                  distinctiveness is made.
                                  123.3. The nature of the goods to which the mark is applied
                                  will not constitute an obstacle to registration. (Sec. 4, R.A. No.
                                  166a)
                                  SEC. 124. Requirements of Application. – 124.1. The
                                  application for the registration of the mark shall be in Filipino or
                                  in English and shall contain the following:
                                  (a) A request for registration;
                                  (b) The name and address of the applicant;
                                  (c) The 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;
                                  (d) Where the applicant is a juridical entity, the law under
                                  which it is organized and existing;
                                  (e) The appointment of an agent or representative, if the
                                  applicant is not domiciled in the Philippines;
                                  (f) Where the applicant claims the priority of an earlier
                                  application, an indication of:
                                  i) The name of the State with whose national office the
                                  earlier application was filed or if filed with an office other
                                  than a national office, the name of that office,
                                  ii) The date on which the earlier application was filed, and
                                  iii) Where available, the application number of the earlier
                                  application;
                                  (g) Where the 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;
                                  (h) Where the mark is a three-dimensional mark, a
                                  statement to that effect;
                                  (i) One or more reproductions of the mark, as prescribed
                                  in the Regulations;
                                  (j) A transliteration or translation of the mark or of some
                                  parts of the mark, as prescribed in the Regulations;
                                  (k) The names of the goods or services for which the
                                  registration is sought, grouped according to the classes of the
                                  Nice Classification, together with the number of the class of the
                                  said Classification to which each group of goods or services belongs;
                                  and
                                  (l) A signature by, or other self-identification of, the
                                  applicant or his representative.
                                  124.2. The applicant or the registrant shall file a
                                  declaration of actual use of the mark with evidence to that effect,
                                  as prescribed by the Regulations within three (3) years from the
                                  filing date of the application. Otherwise, the application shall be
                                  refused or the mark shall be removed from the Register by the
                                  Director.
                                  124.3. One (1) application may relate to several goods and/
                                  or services, whether they belong to one (1) class or to several
                                  classes of the Nice Classification.
                                  124.4. If during the examination of the application, the
                                  Office finds factual basis to reasonably doubt the veracity of any
                                  indication or element in the application, it may require the
                                  applicant to submit sufficient evidence to remove the doubt. (Sec.
                                  5, R.A. No. 166a)
                                  SEC. 125. Representation; Address for Service. – If the
                                  applicant is not domiciled or has no real and effective commercial
                                  establishment in the Philippines, he shall designate by a written
                                  document filed in the Office, the name and address of a Philippine
                                  resident who may be served notices or process in proceedings
                                  affecting the mark. Such notices or services may be served upon
                                  the person so designated by leaving a copy thereof at the address
                                  specified in the last designation filed. If the person so designated
                                  cannot be found at the address given in the last designation, such
                                  notice or process may be served upon the Director. (Sec. 3, R.A.
                                  No. 166a)
                                  SEC. 126. Disclaimers. – The Office may allow or require
                                  the applicant to disclaim an unregistrable component of an
                                  otherwise registrable mark but such disclaimer shall not prejudice
                                  or affect the applicant's or owner's rights then existing or thereafter
                                  arising in the disclaimed matter, nor such shall disclaimer
                                  prejudice or affect the applicant's or owner's right on another
                                  application of later date if the disclaimed matter became distinctive
                                  of the applicant's or owner's goods, business or services. (Sec. 13,
                                  R.A. No. 166a)
                                  SEC. 127. Filing Date. – 127.1. Requirements. – The
                                  filing date of an application shall be the date on which the Office
                                  received the following indications and elements in English or
                                  Filipino:
                                  (a) An express or implicit indication that the registration
                                  of a mark is sought;
                                  (b) The identity of the applicant;
                                  (c) Indications sufficient to contact the applicant or his
                                  representative, if any;
                                  (d) A reproduction of the mark whose registration is sought;
                                  and
                                  (e) The list of the goods or services for which the registration
                                  is sought.
                                  127.2. No filing date shall be accorded until the required
                                  fee is paid. (n)
                                  SEC. 128. Single Registration for Goods and/or Services.
                                  – Where goods and/or services belonging to several classes of the
                                  Nice Classification have been included in one (1) application, such
                                  an application shall result in one registration. (n)
                                  SEC. 129. Division of Application. – Any application
                                  referring to several goods or services, hereafter referred to as the
                                  "initial application," may be divided by the applicant into two (2)
                                  or more applications, hereafter referred to as the "divisional
                                  applications," by distributing among the latter the goods or
                                  services referred to in the initial application. The divisional
                                  applications shall preserve the filing date of the initial application
                                  or the benefit of the right of priority. (n)
                                  SEC. 130. Signature and Other Means of Self-
                                  Identification. – 130.1. Where a signature is required, the Office
                                  shall accept:
                                  (a) A hand-written signature; or
                                  (b) The use of other forms of signature, such as a printed
                                  or stamped signature, or the use of a seal, instead of a handwritten
                                  signature: Provided, That where a seal is used, it should
                                  be accompanied by an indication in letters of the name of the
                                  signatory.
                                  130.2. The Office shall accept communications to it by
                                  telecopier, or by electronic means subject to the conditions or
                                  requirements that will be prescribed by the Regulations. When
                                  communications are made by telefacsimile, the reproduction of
                                  the signature, or the reproduction of the seal together with, where
                                  required, the indication in letters of the name of the natural person
                                  whose seal is used, appears. The original communications must
                                  be received by the Office within thirty (30) days from date of
                                  receipt of the telefacsimile.
                                  130.3. No attestation, notarization, authentication,
                                  legalization or other certification of any signature or other means
                                  of self-identification referred to in the preceding paragraphs, will
                                  be required, except, where the signature concerns the surrender
                                  of a registration. (n)
                                  SEC. 131. Priority Right. – 131.1. An application for
                                  registration of a mark filed in the Philippines by a person referred
                                  to in Section 3, and who previously duly filed an application for
                                  registration of the same mark in one of those countries, shall be
                                  considered as filed as of the day the application was first filed in
                                  the foreign country.
                                  131.2. No registration of a mark in the Philippines by a
                                  person described in this section shall be granted until such mark
                                  has been registered in the country of origin of the applicant.
                                  131.3. Nothing in this section shall entitle the owner of a
                                  registration granted under this section to sue for acts committed
                                  prior to the date on which his mark was registered in this country:
                                  Provided, That, notwithstanding the foregoing, the owner of a wellknown
                                  mark as defined in Section 123.1(e) of this Act, that is not
                                  registered in the Philippines, may, against an identical or confusingly
                                  similar mark, oppose its registration, or petition the cancellation of
                                  its registration or sue for unfair competition, without prejudice to
                                  availing himself of other remedies provided for under the law.
                                  131.4. In like manner and subject to the same conditions
                                  and requirements, the right provided in this section may be based
                                  upon a subsequent regularly filed application in the same foreign
                                  country: Provided, That any foreign application filed prior to
                                  such subsequent application has been withdrawn, abandoned, or
                                  otherwise disposed of, without having been laid open to public
                                  inspection and without leaving any rights outstanding, and has
                                  not served, nor thereafter shall serve, as a basis for claiming a
                                  right of priority. (Sec. 37, R.A. No. 166a)
                                  SEC. 132. Application Number and Filing Date. – 132.1.
                                  The Office shall examine whether the application satisfies the
                                  requirements for the grant of a filing date as provided in Section
                                  127 and Regulations relating thereto. If the application does not
                                  satisfy the filing requirements, the Office shall notify the applicant
                                  who shall within a period fixed by the Regulations complete or
                                  correct the application as required, otherwise, the application shall
                                  be considered withdrawn.
                                  132.2. Once an application meets the filing requirements
                                  of Section 127, it shall be numbered in the sequential order, and
                                  the applicant shall be informed of the application number and
                                  the filing date of the application will be deemed to have been
                                  abandoned. (n)
                                  SEC. 133. Examination and Publication. – 133.1. Once
                                  the application meets the filing requirements of Section 127, the
                                  Office shall examine whether the application meets the
                                  requirements of Section 124 and the mark as defined in Section
                                  121 is registrable under Section 123.
                                  133.2. Where the Office finds that the conditions referred
                                  to in Subsection 133.1 are fulfilled, it shall, upon payment of the
                                  prescribed fee, forthwith cause the application, as filed, to be
                                  published in the prescribed manner.
                                  133.3. If after the examination, the applicant is not
                                  entitled to registration for any reason, the Office shall advise the
                                  applicant thereof and the reasons therefor. The applicant shall
                                  have a period of four (4) months in which to reply or amend his
                                  application, which shall then be re-examined. The Regulations
                                  shall determine the procedure for the re-examination or revival
                                  of an application as well as the appeal to the Director of
                                  Trademarks from any final action by the Examiner.
                                  133.4. An abandoned application may be revived as a
                                  pending application within three (3) months from the date of
                                  abandonment, upon good cause shown and the payment of the
                                  required fee.
                                  133.5. The final decision of refusal of the Director of
                                  Trademarks shall be appealable to the Director General in
                                  accordance with the procedure fixed by the Regulations. (Sec. 7,
                                  R.A. No. 166a)
                                  SEC. 134. Opposition. – Any person who believes that he
                                  would be damaged by the registration of a mark may, upon
                                  payment of the required fee and within thirty (30) days after the
                                  publication referred to in Subsection 133.2, file with the Office an
                                  opposition to the application. Such opposition shall be in writing
                                  and verified by the oppositor or by any person on his behalf who
                                  knows the facts, and shall specify the grounds on which it is
                                  based and include a statement of the facts relied upon. Copies of
                                  certificates of registration of marks registered in other countries
                                  or other supporting documents mentioned in the opposition shall
                                  be filed therewith, together with the translation in English, if not
                                  in the English language. For good cause shown and upon payment
                                  of the required surcharge, the time for filing an opposition may
                                  be extended by the Director of Legal Affairs, who shall notify the
                                  applicant of such extension. The Regulations shall fix the
                                  maximum period of time within which to file the opposition. (Sec.
                                  8, R.A. No. 165a)
                                  SEC. 135. Notice and Hearing. – Upon the filing of an
                                  opposition, the Office shall serve notice of the filing on the
                                  applicant, and of the date of the hearing thereof upon the applicant
                                  and the oppositor and all other persons having any right, title or
                                  interest in the mark covered by the application, as appear of record
                                  in the Office. (Sec. 9, R.A. No. 165)
                                  SEC. 136. Issuance and Publication of Certificate. – When
                                  the period for filing the opposition has expired, or when the Director
                                  of Legal Affairs shall have denied the opposition, the Office upon
                                  payment of the required fee, shall issue the certificate of
                                  registration. Upon issuance of a certificate of registration, notice
                                  thereof making reference to the publication of the application shall
                                  be published in the IPO Gazette. (Sec. 10, R.A. No. 165)
                                  SEC. 137. Registration of Mark and Issuance of a
                                  Certificate to the Owner or his Assignee. – 137.1. The Office shall
                                  maintain a Register in which shall be registered marks, numbered
                                  in the order of their registration, and all transactions in respect
                                  of each mark, required to be recorded by virtue of this law.
                                  137.2. The registration of a mark shall include a
                                  reproduction of the mark and shall mention: its number; the
                                  name and address of the registered owner and, if the registered
                                  owner's address is outside the country, his address for service
                                  within the country; the dates of application and registration; if
                                  priority is claimed, an indication of this fact, and the number,
                                  date and country of the application, basis of the priority claims;
                                  the list of goods or services in respect of which registration has
                                  been granted, with the indication of the corresponding class or
                                  classes; and such other data as the Regulations may prescribe
                                  from time to time.
                                  137.3. A certificate of registration of a mark may be issued
                                  to the assignee of the applicant: Provided, That the assignment
                                  is recorded in the Office. In case of a change of ownership, the
                                  Office shall at the written request signed by the owner, or his
                                  representative, or by the new owner, or his representative and
                                  upon a proper showing and the payment of the prescribed fee,
                                  issue to such assignee a new certificate of registration of the said
                                  mark in the name of such assignee, and for the unexpired part of
                                  the original period.
                                  137.4. The Office shall record any change of address, or
                                  address for service, which shall be notified to it by the registered
                                  owner.
                                  137.5. In the absence of any provision to the contrary in
                                  this Act, communications to be made to the registered owner by
                                  virtue of this Act shall be sent to him at his last recorded address
                                  and, at the same, at his last recorded address for service. (Sec.
                                  19, R.A. No. 166a)
                                  SEC. 138. Certificates of Registration. – A certificate of
                                  registration of a mark shall be prima facie evidence of the validity
                                  of the registration, the registrant's ownership of the mark, and of
                                  the registrant's exclusive right to use the same in connection
                                  with the goods or services and those that are related thereto
                                  specified in the certificate. (Sec. 20, R.A. No. 165)
                                  SEC. 139. Publication of Registered Marks; Inspection of
                                  Register. – 139.1. The Office shall publish, in the form and within
                                  the period fixed by the Regulations, the marks registered, in the
                                  order of their registration, reproducing all the particulars referred
                                  to in Subsection 137.2.
                                  139.2. Marks registered at the Office may be inspected
                                  free of charge and any person may obtain copies thereof at his
                                  own expense. This provision shall also be applicable to transactions
                                  recorded in respect of any registered mark. (n)
                                  SEC. 140. Cancellation upon Application by Registrant;
                                  Amendment or Disclaimer of Registration. – Upon application of
                                  the registrant, the Office may permit any registration to be
                                  surrendered for cancellation, and upon cancellation the appropriate
                                  entry shall be made in the records of the Office. Upon application
                                  of the registrant and payment of the prescribed fee, the Office for
                                  good cause may permit any registration to be amended or to be
                                  disclaimed in part: Provided, That the amendment or disclaimer
                                  does not alter materially the character of the mark. Appropriate
                                  entry shall be made in the records of the Office upon the certificate
                                  of registration or, if said certificate is lost or destroyed, upon a
                                  certified copy thereof. (Sec. 14, R.A. No. 166)
                                  SEC. 141. Sealed and Certified Copies as Evidence. –
                                  Copies of any records, books, papers, or drawings belonging to
                                  the Office relating to marks, and copies of registrations, when
                                  authenticated by the seal of the Office and certified by the Director
                                  of the Administrative, Financial and Human Resource
                                  Development Service Bureau or in his name by an employee of
                                  the Office duly authorized by said Director, shall be evidence in
                                  all cases wherein the originals would be evidence; and any person
                                  who applies and pays the prescribed fee shall secure such copies.
                                  (n)
                                  SEC. 142. Correction of Mistakes Made by the Office. –
                                  Whenever a material mistake in a registration incurred through
                                  the fault of the Office is clearly disclosed by the records of the
                                  Office, a certificate stating the fact and nature of such mistake
                                  shall be issued without charge, recorded and a printed copy thereof
                                  shall be attached to each printed copy of the registration. Such
                                  corrected registration shall thereafter have the same effect as the
                                  original certificate; or in the discretion of the Director of the
                                  Administrative, Financial and Human Resource Development
                                  Service Bureau a new certificate of registration may be issued
                                  without charge. All certificates of correction heretofore issued in
                                  accordance with the Regulations and the registration to which
                                  they are attached shall have the same force and effect as if such
                                  certificates and their issuance had been authorized by this Act.
                                  (n)
                                  SEC. 143. Correction of Mistakes Made by Applicant. –
                                  Whenever a mistake is made in a registration and such mistake
                                  occurred in good faith through the fault of the applicant, the Office
                                  may issue a certificate upon the payment of the prescribed fee:
                                  Provided, That the correction does not involve any change in the
                                  registration that requires republication of the mark. (n)
                                  SEC. 144. Classification of Goods and Services. – 144.1.
                                  Each registration, and any publication of the Office which concerns
                                  an application or registration effected by the Office shall indicate
                                  the goods or services by their names, grouped according to the
                                  classes of the Nice Classification, and each group shall be preceded
                                  by the number of the class of that Classification to which that
                                  group of goods or services belongs, presented in the order of the
                                  classes of the said Classification.
                                  144.2. Goods or services may not be considered as being
                                  similar or dissimilar to each other on the ground that, in any
                                  registration or publication by the Office, they appear in different
                                  classes of the Nice Classification. (Sec. 6, R.A. No. 166a)
                                  SEC. 145. Duration. – A certificate of registration shall
                                  remain in force for ten (10) years: Provided, That the registrant
                                  shall file a declaration of actual use and evidence to that effect, or
                                  shall show valid reasons based on the existence of obstacles to
                                  such use, as prescribed by the Regulations, within one (1) year
                                  from the fifth anniversary of the date of the registration of the
                                  mark. Otherwise, the mark shall be removed from the Register
                                  by the Office. (Sec. 12, R.A. No. 166a)
                                  SEC. 146. Renewal. – 146.1. A certificate of registration
                                  may be renewed for periods of ten (10) years at its expiration
                                  upon payment of the prescribed fee and upon filing of a request.
                                  The request shall contain the following indications:
                                  (a) An indication that renewal is sought;
                                  (b) The name and address of the registrant or his successorin-
                                  interest, hereafter referred to as the "right holder";
                                  (c) The registration number of the registration concerned;
                                  (d) The filing date of the application which resulted in the
                                  registration concerned to be renewed;
                                  (e) Where the right holder has a representative, the name
                                  and address of that representative;
                                  (f) The names of the recorded goods or services for which
                                  the renewal is requested or the names of the recorded goods or
                                  services for which the renewal is not requested, grouped according
                                  to the classes of the Nice Classification to which that group of
                                  goods or services belongs and presented in the order of the classes
                                  of the said Classification; and
                                  (g) A signature by the right holder or his representative.
                                  146.2. Such request shall be in Filipino or English and
                                  may be made at any time within six (6) months before the
                                  expiration of the period for which the registration was issued or
                                  renewed, or it may be made within six (6) months after such
                                  expiration on payment of the additional fee herein prescribed.
                                  146.3. If the Office refuses to renew the registration, it
                                  shall notify the registrant of his refusal and the reasons therefor.
                                  146.4. An applicant for renewal not domiciled in the
                                  Philippines shall be subject to and comply with the requirements
                                  of this Act. (Sec. 15, R.A. No. 166a)
                                  SEC. 147. Rights Conferred. – 147.1. 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. In case of the use of an identical sign for identical
                                  goods or services, a likelihood of confusion shall be presumed.
                                  147.2. The exclusive right of the owner of a well-known
                                  mark defined in Subsection 123.1(e) 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 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. (n)
                                  SEC. 148. Use of Indications by Third Parties for Purposes
                                  Other than those for which the Mark is Used. – 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. (n)
                                  SEC. 149. Assignment and Transfer of Application and
                                  Registration. – 149.1. An application for registration of a mark,
                                  or its registration, may be assigned or transferred with or without
                                  the transfer of the business using the mark. (n)
                                  149.2. Such assignment or transfer shall, however, be
                                  null and void if it is liable to mislead the public, particularly as
                                  regards the nature, source, manufacturing process,
                                  characteristics, or suitability for their purpose, of the goods or
                                  services to which the mark is applied.
                                  149.3. The assignment of the application for registration
                                  of a mark, or of its registration, shall be in writing and require
                                  the signatures of the contracting parties. Transfers by mergers
                                  or other forms of succession may be made by any document
                                  supporting such transfer.
                                  149.4. Assignments and transfers of registrations of
                                  marks shall be recorded at the Office on payment of the prescribed
                                  fee; assignment and transfers of applications for registration shall,
                                  on payment of the same fee, be provisionally recorded, and the
                                  mark, when registered, shall be in the name of the assignee or
                                  transferee.
                                  149.5. Assignments and transfers shall have no effect
                                  against third parties until they are recorded at the Office. (Sec.
                                  31, R.A. No. 166a)
                                  SEC. 150. License Contracts. – 150.1. Any license
                                  contract concerning the registration of a mark, or an application
                                  therefor, shall provide for effective control by the licensor of the
                                  quality of the goods or services of the licensee in connection with
                                  which the mark is used. If the license contract does not provide
                                  for such quality control, or if such quality control is not effectively
                                  carried out, the license contract shall not be valid.
                                  150.2. A license contract shall be submitted to the Office
                                  which shall keep its contents confidential but shall record it and
                                  publish a reference thereto. A license contract shall have no
                                  effect against third parties until such recording is effected. The
                                  Regulations shall fix the procedure for the recording of the license
                                  contract. (n)
                                  SEC. 151. Cancellation. – 151.1. A petition to cancel a
                                  registration of a mark under this Act may be filed with the Bureau
                                  of Legal Affairs by any person who believes that he is or will be
                                  damaged by the registration of a mark under this Act as follows:
                                  (a) Within five (5) years from the date of the registration
                                  of the mark under this Act.
                                  (b) At any time, if the registered mark becomes the generic
                                  name for the goods or services, or a portion thereof, for which it is
                                  registered, or has been abandoned, or its registration was obtained
                                  fraudulently or contrary to the provisions of this Act, or if the
                                  registered mark is being used by, or with the permission of, the
                                  registrant so as to misrepresent the source of the goods or services
                                  on or in connection with which the mark is used. If the registered
                                  mark becomes the generic name for less than all of the goods or
                                  services for which it is registered, a petition to cancel the
                                  registration for only those goods or services may be filed. A
                                  registered mark shall not be deemed to be the generic name of
                                  goods or services solely because such mark is also used as a name
                                  of or to identify a unique product or service. The primary
                                  significance of the registered mark to the relevant public rather
                                  than purchaser motivation shall be the test for determining
                                  whether the registered mark has become the generic name of
                                  goods or services on or in connection with which it has been used.
                                  (n)
                                  (c) At any time, if the registered owner of the mark without
                                  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 three (3) years or longer.
                                  151.2. Notwithstanding the foregoing provisions, the court
                                  or the administrative agency vested with jurisdiction to hear and
                                  adjudicate any action to enforce the rights to a registered mark
                                  shall likewise exercise jurisdiction to determine whether the
                                  registration of said mark may be cancelled in accordance with
                                  this Act. The filing of a suit to enforce the registered mark with
                                  the proper court or agency shall exclude any other court or agency
                                  from assuming jurisdiction over a subsequently filed petition to
                                  cancel the same mark. On the other hand, the earlier filing of
                                  petition to cancel the mark with the Bureau of Legal Affairs shall
                                  not constitute a prejudicial question that must be resolved before
                                  an action to enforce the rights to same registered mark may be
                                  decided. (Sec. 17, R.A. No. 166a)
                                  SEC. 152. Non-use of a Mark When Excused. – 152.1.
                                  Non-use of a mark may be excused if caused by circumstances
                                  arising independently of the will of the trademark owner. Lack
                                  of funds shall not excuse non-use of a mark.
                                  152.2. The use of the mark in a form different from the
                                  form in which it is registered, which does not alter its distinctive
                                  character, shall not be ground for cancellation or removal of the
                                  mark and shall not diminish the protection granted to the mark.
                                  152.3. The use of a mark in connection with one (1) or
                                  more of the goods or services belonging to the class in respect of
                                  which the mark is registered shall prevent its cancellation or
                                  removal in respect of all other goods or services of the same class.
                                  152.4. The use of a mark by a company related with the
                                  registrant or applicant shall inure to the latter's benefit, and
                                  such use shall not affect the validity of such mark or of its
                                  registration: Provided, That such mark is not used in such
                                  manner as to deceive the public. If use of a mark by a person is
                                  controlled by the registrant or applicant with respect to the nature
                                  and quality of the goods or services, such use shall inure to the
                                  benefit of the registrant or applicant. (n)
                                  SEC. 153. Requirements of Petition; Notice and Hearing.
                                  – Insofar as applicable, the petition for cancellation shall be in
                                  the same form as that provided in Section 134 hereof, and notice
                                  and hearing shall be as provided in Section 135 hereof.
                                  SEC. 154. Cancellation of Registration. – If the Bureau
                                  of Legal Affairs finds that a case for cancellation has been made
                                  out, it shall order the cancellation of the registration. When the
                                  order or judgment becomes final, any right conferred by such
                                  registration upon the registrant or any person in interest of record
                                  shall terminate. Notice of cancellation shall be published in the
                                  IPO Gazette. (Sec. 19, R.A. No. 166a)
                                  SEC. 155. Remedies; Infringement. – Any person who
                                  shall, without the consent of the owner of the registered mark:
                                  155.1. Use in commerce any reproduction, counterfeit,
                                  copy, or colorable imitation of a registered mark or the same
                                  container or a dominant feature thereof in connection with the
                                  sale, offering for sale, distribution, advertising of any goods or
                                  services 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; or
                                  155.2. 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, shall be liable in a
                                  civil action for infringement by the registrant for the remedies
                                  hereinafter set forth: Provided, That the infringement takes
                                  place at the moment any of the acts stated in Subsection 155.1 or
                                  this subsection are committed regardless of whether there is actual
                                  sale of goods or services using the infringing material. (Sec. 22,
                                  R.A. No. 166a)
                                  SEC. 156. Actions, and Damages and Injunction for
                                  Infringement. – 156.1. The owner of a registered mark may recover
                                  damages from any person who infringes his rights, and the
                                  measure of the damages suffered shall be either the reasonable
                                  profit which the complaining party would have made, had the
                                  defendant not infringed his rights, or the profit which the defendant
                                  actually made out of the infringement, or in the event such
                                  measure of damages cannot be readily ascertained with reasonable
                                  certainty, then the court may award as damages a reasonable
                                  percentage based upon the amount of gross sales of the defendant
                                  or the value of the services in connection with which the mark or
                                  trade name was used in the infringement of the rights of the
                                  complaining party. (Sec. 23, first par., R.A. No. 166a)
                                  156.2. On application of the complainant, the court may
                                  impound during the pendency of the action, sales invoices and
                                  other documents evidencing sales. (n)
                                  156.3. In cases where actual intent to mislead the public
                                  or to defraud the complainant is shown, in the discretion of the
                                  court, the damages may be doubled. (Sec. 23, first par., R.A. No.
                                  166a)
                                  156.4. The complainant, upon proper showing, may also
                                  be granted injunction. (Sec. 23, second par., R.A. No. 166a)
                                  SEC. 157. Power of Court to Order Infringing Material
                                  Destroyed. – 157.1. In any action arising under this Act, in
                                  which a violation of any right of the owner of the registered mark
                                  is established, the court may order that goods found to be
                                  infringing be, without compensation of any sort, disposed of outside
                                  the channels of commerce in such a manner as to avoid any harm
                                  caused to the right holder, or destroyed; and all labels, signs,
                                  prints, packages, wrappers, receptacles and advertisements in
                                  the possession of the defendant, bearing the registered mark or
                                  trade name or any reproduction, counterfeit, copy or colorable
                                  imitation thereof, all plates, molds, matrices and other means of
                                  making the same, shall be delivered up and destroyed.
                                  157.2. In regard to counterfeit goods, the simple removal
                                  of the trademark affixed shall not be sufficient other than in
                                  exceptional cases which shall be determined by the Regulations,
                                  to permit the release of the goods into the channels of commerce.
                                  (Sec. 24, R.A. No. 166a)
                                  SEC. 158. Damages; 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 the
                                  letter R within a circle or if the defendant had otherwise actual
                                  notice of the registration. (Sec. 21, R.A. No. 166a)
                                  SEC. 159. Limitations to Actions for Infringement. –
                                  Notwithstanding any other provision of this Act, the remedies
                                  given to the owner of a right infringed under this Act shall be
                                  limited as follows:
                                  159.1. Notwithstanding the provisions of Section 155
                                  hereof, a registered mark shall have no effect against any person
                                  who, in good faith, before the filing date or the priority date, was
                                  using the mark for the purposes of his business or enterprise:
                                  Provided, That his right may only be transferred or assigned
                                  together with his enterprise or business or with that part of his
                                  enterprise or business in which the mark is used.
                                  159.2. Where an infringer who is engaged solely in the
                                  business of printing the mark or other infringing materials for
                                  others is an innocent infringer, the owner of the right infringed
                                  shall be entitled as against such infringer only to an injunction
                                  against future printing.
                                  159.3. Where the infringement complained of is contained
                                  in or is part of paid advertisement in a newspaper, magazine, or
                                  other similar periodical or in an electronic communication, the
                                  remedies of the owner of the right infringed as against the
                                  publisher or distributor of such newspaper, magazine, or other
                                  similar periodical or electronic communication shall be limited to
                                  an injunction against the presentation of such advertising matter
                                  in future issues of such newspapers, magazines, or other similar
                                  periodicals or in future transmissions of such electronic
                                  communications. The limitations of this subparagraph shall apply
                                  only to innocent infringers: Provided, That such injunctive relief
                                  shall not be available to the owner of the right infringed with
                                  respect to an issue of a newspaper, magazine, or other similar
                                  periodical or an electronic communication containing infringing
                                  matter where restraining the dissemination of such infringing
                                  matter in any particular issue of such periodical or in an electronic
                                  communication would delay the delivery of such issue or
                                  transmission of such electronic communication is customarily
                                  conducted in accordance with the sound business practice, and
                                  not due to any method or device adopted to evade this section or to
                                  prevent or delay the issuance of an injunction or restraining order
                                  with respect to such infringing matter. (n)
                                  SEC. 160. Right of Foreign Corporation to Sue in
                                  Trademark or Service Mark Enforcement Action. – Any foreign
                                  national or juridical person who meets the requirements of Section
                                  3 of this Act and does not engage in business in the Philippines
                                  may bring a civil or administrative action hereunder for
                                  opposition, cancellation, infringement, unfair competition, or false
                                  designation of origin and false description, whether or not it is
                                  licensed to do business in the Philippines under existing laws.
                                  (Sec. 21-A, R.A. No. 166a)
                                  SEC. 161. Authority to Determine Right to Registration.
                                  – In any action involving a registered mark, the court may
                                  determine the right to registration, order the cancellation of a
                                  registration, in whole or in part, and otherwise rectify the register
                                  with respect to the registration of any party to the action in the
                                  exercise of this. Judgment and orders shall be certified by the
                                  court to the Director, who shall make appropriate entry upon the
                                  records of the Bureau, and shall be controlled thereby. (Sec. 25,
                                  R.A. No. 166a)
                                  SEC. 162. Action for False or Fraudulent Declaration. –
                                  Any person who shall procure registration in the Office of a mark
                                  by a false or fraudulent declaration or representation, whether
                                  oral or in writing, or by any false means, shall be liable in a civil
                                  action by any person injured thereby for any damages sustained
                                  in consequence thereof. (Sec. 26, R.A. No. 166)
                                  SEC. 163. Jurisdiction of Court. – All actions under
                                  Sections 150, 155, 164, and 166 to 169 shall be brought before the
                                  proper courts with appropriate jurisdiction under existing laws.
                                  (Sec. 27, R.A. No. 166)
                                  SEC. 164. Notice of Filing Suit Given to the Director. –
                                  It shall be the duty of the clerks of such courts within one (1)
                                  month after the filing of any action, suit, or proceeding involving
                                  a mark registered under the provisions of this Act, to notify the
                                  Director in writing setting forth: the names and addresses of the
                                  litigants and designating the number of the registration or
                                  registrations and within one (1) month after the judgment is
                                  entered or an appeal is taken, the clerk of court shall give notice
                                  thereof to the Office, and the latter shall endorse the same upon
                                  the filewrapper of the said registration or registrations and
                                  incorporate the same as a part of the contents of said filewrapper.
                                  (n)
                                  SEC. 165. Trade Names or Business Names. – 165.1. 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.
                                  165.2. (a) 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.
                                  (b) 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.
                                  165.3. The remedies provided for in Sections 153 to 156
                                  and Sections 166 and 167 shall apply mutatis mutandis.
                                  165.4. 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. The provisions of Subsections 149.2 to
                                  149.4 shall apply mutatis mutandis.
                                  SEC. 166. Goods Bearing Infringing Marks or Trade
                                  Names. – No article of imported merchandise which shall copy or
                                  simulate the name of any domestic product, or manufacturer, or
                                  dealer, or which shall copy or simulate a mark registered in
                                  accordance with the provisions of this Act, or shall bear a mark
                                  or trade name calculated to induce the public to believe that the
                                  article is manufactured in the Philippines, or that it is
                                  manufactured in any foreign country or locality other than the
                                  country or locality where it is in fact manufactured, shall be
                                  admitted to entry at any customhouse of the Philippines. In
                                  order to aid the officers of the customs service in enforcing this
                                  prohibition, any person who is entitled to the benefits of this Act,
                                  may require that his name and residence, and the name of the
                                  locality in which his goods are manufactured, a copy of the
                                  certificate of registration of his mark or trade name, to be recorded
                                  in books which shall be kept for this purpose in the Bureau of
                                  Customs, under such regulations as the Collector of Customs
                                  with the approval of the Secretary of Finance shall prescribe, and
                                  may furnish to the said Bureau facsimiles of his name, the name
                                  of the locality in which his goods are manufactured, or his
                                  registered mark or trade name, and thereupon the Collector of
                                  Customs shall cause one (1) or more copies of the same to be
                                  transmitted to each collector or to other proper officer of the Bureau
                                  of Customs. (Sec. 35, R.A. No. 166)
                                  SEC. 167. Collective Marks. – 167.1. Subject to
                                  Subsections 167.2 and 167.3, Sections 122 to 164 and 166 shall
                                  apply to collective marks, except that references therein to "mark"
                                  shall be read as "collective mark."
                                  167.2. (a) 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.
                                  (b) The registered owner of a collective mark shall notify
                                  the Director of any changes made in respect of the agreement
                                  referred to in paragraph (a).
                                  167.3. In addition to the grounds provided in Section 149,
                                  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 referred to in Subsection 166.2
                                  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.
                                  167.4. The registration of a collective mark, or an
                                  application therefor shall not be the subject of a license contract.
                                  (Sec. 40, R.A. No. 166a)
                                  SEC. 168. Unfair Competition, Rights, Regulation and
                                  Remedies. – 168.1. A person who has identified in the mind of
                                  the public the goods he manufactures or deals in, his business or
                                  services from those of others, whether or not a registered mark is
                                  employed, has a property right in the goodwill of the said goods,
                                  business or services so identified, which will be protected in the
                                  same manner as other property rights.
                                  168.2. Any person who shall employ deception or any other
                                  means contrary to good faith by which he shall pass off the goods
                                  manufactured by him or in which he deals, or his business, or
                                  services for those of the one having established such goodwill, or
                                  who shall commit any acts calculated to produce said result, shall
                                  be guilty of unfair competition, and shall be subject to an action
                                  therefor.
                                  168.3. In particular, and without in any way limiting the
                                  scope of protection against unfair competition, the following shall
                                  be deemed guilty of unfair competition:
                                  (a) 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, or 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 of any vendor engaged in selling such goods with a like
                                  purpose;
                                  (b) 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; or
                                  (c) 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.
                                  168.4. The remedies provided by Sections 156, 157 and
                                  161 shall apply mutatis mutandis. (Sec. 29, R.A. No. 166a)
                                  SEC. 169. False Designations of Origin; False description
                                  or Representation. – 169.1. Any person who, on or in connection
                                  with any goods or services, or any container for goods, uses in
                                  commerce any word, term, name, symbol, or device, or any
                                  combination thereof, or any false designation of origin, false or
                                  misleading description of fact, or false or misleading representation
                                  of fact, which:
                                  (a) Is likely to cause confusion, or to cause mistake, or to
                                  deceive as to the affiliation, connection, or association of such
                                  person with another person, or as to the origin, sponsorship, or
                                  approval of his or her goods, services, or commercial activities by
                                  another person; or
                                  (b) In commercial advertising or promotion, misrepresents
                                  the nature, characteristics, qualities, or geographic origin of his
                                  or her or another person's goods, services, or commercial activities,
                                  shall be liable to a civil action for damages and injunction provided
                                  in Sections 156 and 157 of this Act by any person who believes
                                  that he or she is or is likely to be damaged by such act.
                                  169.2. Any goods marked or labelled in contravention of
                                  the provisions of this Section shall not be imported into the
                                  Philippines or admitted entry at any customhouse of the
                                  Philippines. The owner, importer, or consignee of goods refused
                                  entry at any custom house under this section may have any
                                  recourse under the customs revenue laws or may have the remedy
                                  given by this Act in cases involving goods refused entry or seized.
                                  (Sec. 30, R.A. No. 166a)
                                  SEC. 170. Penalties. – Independent of the civil and
                                  administrative sanctions imposed by law, a criminal penalty of
                                  imprisonment from two (2) years to five (5) years and a fine ranging
                                  from Fifty thousand pesos (P50,000) to Two hundred thousand
                                  pesos (P200,000), shall be imposed on any person who is found
                                  guilty of committing any of the acts mentioned in Section 155,
                                  Section 168 and Subsection 169.1. (Arts. 188 and 189, Revised
                                  Penal Code)
                                  PART IV
                                  THE LAW ON COPYRIGHT
                                  CHAPTER I
                                  PRELIMINARY PROVISIONS
                                  SEC. 171. Definitions. – For the purpose of this Act, the
                                  following terms have the following meaning:
                                  171.1. "Author" is the natural person who has created
                                  the work;
                                  171.2. A "collective work" is a work which has been created
                                  by two (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;
                                  171.3. "Communication to the public" or "communicate
                                  to the public" means the making of a work available to the public
                                  by wire or wireless means in such a way that members of the
                                  public may access these works from a place and time individually
                                  chosen by them;
                                  171.4. A "computer" is an electronic or similar device
                                  having information-processing capabilities, and a "computer
                                  program" is a set of instructions expressed in words, codes, schemes
                                  or in any other form, which is capable when incorporated in a
                                  medium that the computer can read, of causing the computer to
                                  perform or achieve a particular task or result;
                                  171.5. "Public lending" is the transfer of possession of the
                                  original or a copy of a work or sound recording for a limited period,
                                  for non-profit purposes, by an institution, the services of which
                                  are available to the public, such as public library or archive;
                                  171.6. "Public performance," in the case of a work other
                                  than an audiovisual work, is the recitation, playing, dancing,
                                  acting or otherwise performing the work, either directly or by
                                  means of any device or process; in the case of an audiovisual
                                  work, the showing of its images in sequence and the making of
                                  the sounds accompanying it audible; and, in the case of a sound
                                  recording, making the recorded sounds audible at a place or at
                                  places where persons outside the normal circle of a family and
                                  that family's closest social acquaintances are or can be present,
                                  irrespective of whether they are or can be present at the same
                                  place and at the same time, or at different places and/or at different
                                  times, and where the performance can be perceived without the
                                  need for communication within the meaning of Subsection 171.3;
                                  171.7. "Published works" mean works, which with the
                                  consent of the authors, are made available to the public by wire
                                  or wireless means in such a way that members of the public may
                                  access these works from a place and time individually chosen by
                                  them: Provided, That availability of such copies has been such,
                                  as to satisfy the reasonable requirements of the public, having
                                  regard to the nature of the work;
                                  171.8. "Rental" is the transfer of the possession of the
                                  original or a copy of a work or a sound recording for a limited
                                  period of time, for profit-making purposes;
                                  171.9. "Reproduction" is the making of one (1) or more
                                  copies of a work or a sound recording in any manner or form (Sec.
                                  41 (E), P.D. No. 49a);
                                  171.10. A "work of applied art" is an artistic creation with
                                  utilitarian functions or incorporated in a useful article, whether
                                  made by hand or produced on an industrial scale;
                                  171.11. A "work of the Government of the Philippines" is a
                                  work created by an officer or employee of the Philippine
                                  Government or any of its subdivisions and instrumentalities,
                                  including government-owned or -controlled corporations as a part
                                  of his regularly prescribed official duties.
                                  CHAPTER II
                                  ORIGINAL WORKS
                                  SEC. 172. Literary and Artistic Works. – 172.1. Literary
                                  and artistic works, hereinafter referred to as "works," are original
                                  intellectual creations in the literary and artistic domain protected
                                  from the moment of their creation and shall include in particular:
                                  (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 of 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 threedimensional
                                  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; and
                                  (o) Other literary, scholarly, scientific and artistic works.
                                  172.2. 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. (Sec. 2, P.D. No. 49a)
                                  CHAPTER III
                                  DERIVATIVE WORKS
                                  SEC. 173. Derivative Works. – 173.1. The following
                                  derivative works shall also be protected by copyright:
                                  (a) Dramatizations, translations, adaptations, abridgments,
                                  arrangements, and other alterations of literary or artistic works;
                                  and
                                  (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 or arrangement of their
                                  contents. (Sec. 2, (P) and (Q), P.D. No. 49)
                                  173.2. The works referred to in paragraphs (a) and (b) of
                                  Subsection 173.1 shall be protected as new works: Provided,
                                  however, That such new work shall not affect the force of any
                                  subsisting copyright upon the original works employed or any
                                  part thereof, or be construed to imply any right to such use of the
                                  original works, or to secure or extend copyright in such original
                                  works. (Sec. 8, P.D. 49; Art. 10, TRIPS)
                                  SEC. 174. 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. (n)
                                  CHAPTER IV
                                  WORKS NOT PROTECTED
                                  SEC. 175. Unprotected Subject Matter. – Notwithstanding
                                  the provisions of Sections 172 and 173, no protection shall extend,
                                  under this law, 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. (n)
                                  SEC. 176. Works of the Government. – 176.1. No copyright
                                  shall subsist in any work of the Government of the Philippines.
                                  However, prior approval of the government agency or office wherein
                                  the work is created shall be necessary for exploitation of such
                                  work for profit. Such agency or office may, among other things,
                                  impose as a condition the payment of royalties. No prior approval
                                  or conditions shall be required for the use for any purpose of
                                  statutes, rules and regulations, and speeches, lectures, sermons,
                                  addresses, and dissertations, pronounced, read or rendered in
                                  courts of justice, before administrative agencies, in deliberative
                                  assemblies and in meetings of public character. (Sec. 9, first par.,
                                  P.D. No. 49)
                                  176.2. The author of speeches, lectures, sermons,
                                  addresses, and dissertations mentioned in the preceding
                                  paragraphs shall have the exclusive right of making a collection
                                  of his works. (n)
                                  176.3. Notwithstanding the foregoing provisions, the
                                  Government is not precluded from receiving and holding
                                  copyrights transferred to it by assignment, bequest or otherwise;
                                  nor shall publication or republication by the Government in a
                                  public document of any work in which copyright is subsisting be
                                  taken to cause any abridgment or annulment of the copyright or
                                  to authorize any use or appropriation of such work without the
                                  consent of the copyright owner. (Sec. 9, third par., P.D. No. 49)
                                  CHAPTER V
                                  COPYRIGHT OR ECONOMIC RIGHTS
                                  SEC. 177. Copyright or Economic Rights. – Subject to
                                  the provisions of Chapter VIII, copyright or economic rights shall
                                  consist of the exclusive right to carry out, authorize or prevent
                                  the following acts:
                                  177.1. Reproduction of the work or substantial portion of
                                  the work;
                                  177.2. Dramatization, translation, adaptation,
                                  abridgment, arrangement or other transformation of the work;
                                  177.3. The first public distribution of the original and each
                                  copy of the work by sale or other forms of transfer of ownership;
                                  177.4. Rental of the original or a copy of an audiovisual or
                                  cinematographic work, a work embodied in a sound recording, a
                                  computer program, a compilation of data and other materials or
                                  a musical work in graphic form, irrespective of the ownership of
                                  the original or the copy which is the subject of the rental; (n)
                                  177.5. Public display of the original or a copy of the work;
                                  177.6. Public performance of the work; and
                                  177.7. Other communication to the public of the work.
                                  (Sec. 5, P.D. No. 49a)
                                  CHAPTER VI
                                  OWNERSHIP OF COPYRIGHT
                                  SEC. 178. Rules on Copyright Ownership. – Copyright
                                  ownership shall be governed by the following rules:
                                  178.1. Subject to the provisions of this section, in the case
                                  of original literary and artistic works, copyright shall belong to
                                  the author of the work;
                                  178.2. In the case of works of joint authorship, the coauthors
                                  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. If, however, a work of joint authorship consists
                                  of parts that can be used separately and the author of each part
                                  can be identified, the author of each part shall be the original
                                  owner of the copyright in the part that he has created;
                                  178.3. In the case of work created by an author during
                                  and in the course of his employment, the copyright shall belong
                                  to:
                                  (a) The employee, if the creation of the object of copyright
                                  is not a part of his regular duties even if the employee uses the
                                  time, facilities and materials of the employer.
                                  (b) The employer, if the work is the result of the
                                  performance of his regularly-assigned duties, unless there is an
                                  agreement, expressed or implied, to the contrary.
                                  178.4. In the case of a work commissioned by a person
                                  other than an employer of the author and who pays for it and the
                                  work is made in pursuance of the commission, the person who so
                                  commissioned the work shall have ownership of the work, but
                                  the copyright thereto shall remain with the creator, unless there
                                  is a written stipulation to the contrary;
                                  178.5. In the case of audiovisual work, the copyright shall
                                  belong to the producer, the author of the scenario, the composer
                                  of the music, the film director, and the author of the work so
                                  adapted. However, subject to contrary or other stipulations among
                                  the creators, the producer shall exercise the copyright to an extent
                                  required for the exhibition of the work in any manner, except for
                                  the right to collect performing license fees for the performance of
                                  musical compositions, with or without words, which are
                                  incorporated into the work; and
                                  178.6. In respect of letters, the copyright shall belong to
                                  the writer subject to the provisions of Article 723 of the Civil
                                  Code. (Sec. 6, P.D. No. 49a)
                                  SEC. 179. Anonymous and Pseudonymous Works. – For
                                  purposes of this Act, the publishers shall be deemed to represent
                                  the authors of articles and other writings published without the
                                  names of the authors or under pseudonyms, unless the contrary
                                  appears, or the pseudonyms or adopted name leaves no doubt as
                                  to the author's identity, or if the author of the anonymous works
                                  discloses his identity. (Sec. 7, P.D. 49)
                                  CHAPTER VII
                                  TRANSFER OR ASSIGNMENT OF COPYRIGHT
                                  SEC. 180. Rights of Assignee. – 180.1. The copyright may
                                  be assigned in whole or in part. Within the scope of the
                                  assignment, the assignee is entitled to all the rights and remedies
                                  which the assignor had with respect to the copyright.
                                  180.2. The copyright is not deemed assigned inter vivos
                                  in whole or in part unless there is a written indication of such
                                  intention.
                                  180.3. The submission of a literary, photographic or
                                  artistic work to a newspaper, magazine or periodical for publication
                                  shall constitute only a license to make a single publication unless
                                  a greater right is expressly granted. If two (2) or more persons
                                  jointly own a copyright or any part thereof, neither of the owners
                                  shall be entitled to grant licenses without the prior written consent
                                  of the other owner or owners. (Sec. 15, P.D. No. 49a)
                                  SEC. 181. 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. (Sec.
                                  16, P.D. No. 49)
                                  SEC. 182. Filing of Assignment or License. – An
                                  assignment or exclusive license may be filed in duplicate with
                                  the National Library upon payment of the prescribed fee for
                                  registration in books and records kept for the purpose. Upon
                                  recording, a copy of the instrument shall be returned to the sender
                                  with a notation of the fact of record. Notice of the record shall be
                                  published in the IPO Gazette. (Sec. 19, P.D. No. 49a)
                                  SEC. 183. Designation of Society. – The copyright owners
                                  or their heirs may designate a society of artists, writers or
                                  composers to enforce their economic rights and moral rights on
                                  their behalf. (Sec. 32, P.D. No. 49a)
                                  CHAPTER VIII
                                  LIMITATIONS ON COPYRIGHT
                                  SEC. 184. Limitations on Copyright. – 184.1.
                                  Notwithstanding the provisions of Chapter V, the following acts
                                  shall not constitute infringement of copyright:
                                  (a) 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; (Sec. 10(1), P.D. No. 49)
                                  (b) The making of quotations from a published work if they
                                  are compatible with fair use and only to the extent justified for
                                  the purpose, including quotations from newspaper articles and
                                  periodicals in the form of press summaries: Provided, That the
                                  source and the name of the author, if appearing on the work, are
                                  mentioned; (Sec. 11, third par., P.D. No. 49)
                                  (c) 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:
                                  Provided, That the source is clearly indicated; (Sec. 11, P.D. No.
                                  49)
                                  (d) 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; (Sec. 12, P.D. No. 49)
                                  (e) 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: Provided, That the source and
                                  of the name of the author, if appearing in the work, are mentioned;
                                  (f) 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:
                                  Provided, That such recording must be deleted within a reasonable
                                  period after they were first broadcast: Provided, further, That
                                  such recording may not be made from audiovisual works which
                                  are part of the general cinema repertoire of feature films except
                                  for brief excerpts of the work;
                                  (g) The making of ephemeral recordings by a broadcasting
                                  organization by means of its own facilities and for use in its own
                                  broadcast;
                                  (h) 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;
                                  (i) 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, subject to such other limitations as
                                  may be provided in the Regulations; (n)
                                  (j) 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: Provided,
                                  That either the work has been published, or, that the original or
                                  the copy displayed has been sold, given away or otherwise
                                  transferred to another person by the author or his successor in
                                  title; and
                                  (k) Any use made of a work for the purpose of any judicial
                                  proceedings or for the giving of professional advice by a legal
                                  practitioner.
                                  184.2. The provisions of this section shall be interpreted
                                  in such a way as to allow the work to be used in a manner which
                                  does not conflict with the normal exploitation of the work and
                                  does not unreasonably prejudice the right holder's legitimate
                                  interests.
                                  SEC. 185. Fair Use of a Copyrighted Work. – 185.1. The
                                  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. Decompilation, which is understood here to be the
                                  reproduction of the code and translation of the forms of the
                                  computer program to achieve the inter-operability of an
                                  independently created computer program with other programs
                                  may also constitute fair use. In determining whether the use
                                  made of a work in any particular case is fair use, the factors to be
                                  considered shall include:
                                  (a) The purpose and character of the use, including whether
                                  such use is of a commercial nature or is for non-profit educational
                                  purposes;
                                  (b) The nature of the copyrighted work;
                                  (c) The amount and substantiality of the portion used in
                                  relation to the copyrighted work as a whole; and
                                  (d) The effect of the use upon the potential market for or
                                  value of the copyrighted work.
                                  185.2. The fact that a work is unpublished shall not by
                                  itself bar a finding of fair use if such finding is made upon
                                  consideration of all the above factors.
                                  SEC. 186. Work of Architecture. – Copyright in a work of
                                  architecture shall include 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: Provided, That the copyright in any such
                                  work shall not include the right to control the reconstruction or
                                  rehabilitation in the same style as the original of a building to
                                  which that copyright relates. (n)
                                  SEC. 187. Reproduction of Published Work. – 187.1.
                                  Notwithstanding the provision of Section 177, and subject to the
                                  provisions of Subsection 187.2, the private reproduction of a
                                  published work in a single copy, where the reproduction is made
                                  by a natural person exclusively for research and private study,
                                  shall be permitted, without the authorization of the owner of
                                  copyright in the work.
                                  187.2. The permission granted under Subsection 187.1
                                  shall not extend to the reproduction of:
                                  (a) A work of architecture in the form of building or other
                                  construction;
                                  (b) An entire book, or a substantial part thereof, or of a
                                  musical work in graphic form by reprographic means;
                                  (c) A compilation of data and other materials;
                                  (d) A computer program except as provided in Section 189;
                                  and
                                  (e) Any work in cases where reproduction would
                                  unreasonably conflict with a normal exploitation of the work or
                                  would otherwise unreasonably prejudice the legitimate interests
                                  of the author. (n)
                                  SEC. 188. Reprographic Reproduction by Libraries. –
                                  188.1. Notwithstanding the provisions of Subsection 177.6, any
                                  library or archive whose activities are not for profit may, without
                                  the authorization of the author of copyright owner, make a single
                                  copy of the work by reprographic reproduction:
                                  (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 contained in
                                  composite works or brief portions of other published works and
                                  the 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 a 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.
                                  188.2. Notwithstanding the above provisions, it shall not
                                  be permissible to produce a volume of a work published in several
                                  volumes or to produce missing tomes or pages of magazines or
                                  similar works, unless the volume, tome or part is out of stock:
                                  Provided, That every library which, by law, is entitled to receive
                                  copies of a printed work, shall be entitled, when special reasons
                                  so require, to reproduce a copy of a published work which is
                                  considered necessary for the collection of the library but which is
                                  out of stock. (Sec. 13, P.D. 49a)
                                  SEC. 189. Reproduction of Computer Program. – 189.1.
                                  Notwithstanding the provisions of Section 177, the reproduction
                                  in one (1) back-up copy or adaptation of a computer program shall
                                  be permitted, without the authorization of the author of, or other
                                  owner of copyright in, a computer program, by the lawful owner
                                  of that computer program: Provided, That the copy or adaptation
                                  is necessary for:
                                  (a) The use of the computer program in conjunction with a
                                  computer for the purpose, and to the extent, for which the computer
                                  program has been obtained; and
                                  (b) Archival purposes, and, for the replacement of the
                                  lawfully owned copy of the computer program in the event that
                                  the lawfully obtained copy of the computer program is lost,
                                  destroyed or rendered unusable.
                                  189.2. No copy or adaptation mentioned in this Section
                                  shall be used for any purpose other than the ones determined in
                                  this Section, and any such copy or adaptation shall be destroyed
                                  in the event that continued possession of the copy of the computer
                                  program ceases to be lawful.
                                  189.3. This provision shall be without prejudice to the
                                  application of Section 185 whenever appropriate. (n)
                                  SEC. 190. Importation for Personal Purposes. – 190.1.
                                  Notwithstanding the provision of Subsection 177.6, but subject
                                  to the limitation under the Subsection 185.2, the importation of a
                                  copy of a work by an individual for his personal purposes shall be
                                  permitted without the authorization of the author of, or other
                                  owner of copyright in, the work under the following circumstances:
                                  (a) When copies of the work are not available in the
                                  Philippines and:
                                  (i) Not more than one (1) copy at one time is imported for
                                  strictly individual use only; or
                                  (ii) The importation is by authority of and for the use of the
                                  Philippine Government; or
                                  (iii)The importation, consisting of not more than three (3)
                                  such copies or likenesses in any one invoice, is not for
                                  sale but for the 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.
                                  (b) 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: Provided, That such
                                  copies do not exceed three (3).
                                  190.2. Copies imported as allowed by this Section may
                                  not lawfully be used in any way to violate the rights of owner the
                                  copyright or annul or limit the protection secured by this Act,
                                  and such unlawful use shall be deemed an infringement and shall
                                  be punishable as such without prejudice to the proprietor's right
                                  of action.
                                  190.3. Subject to the approval of the Secretary of Finance,
                                  the Commissioner of Customs is hereby empowered to make rules
                                  and regulations for preventing the importation of articles, the
                                  importation of which is prohibited under this Section and under
                                  treaties and conventions to which the Philippines may be a party
                                  and for seizing and condemning and disposing of the same in case
                                  they are discovered after they have been imported. (Sec. 30, P.D.
                                  No. 49)
                                  CHAPTER IX
                                  DEPOSIT AND NOTICE
                                  SEC. 191. Registration and Deposit with National
                                  Library and the Supreme Court Library. – After the first public
                                  dissemination of performance by authority of the copyright owner
                                  of a work falling under Subsections 172.1, 172.2 and 172.3 of this
                                  Act, there shall, for the purpose of completing the records of the
                                  National Library and the Supreme Court Library, within three
                                  (3) weeks, be registered and deposited with it, by personal delivery
                                  or by registered mail, two (2) complete copies or reproductions of
                                  the work in such form as the directors of said libraries may
                                  prescribe. A certificate of deposit shall be issued for which the
                                  prescribed fee shall be collected and the copyright owner shall be
                                  exempt from making additional deposit of the works with the
                                  National Library and the Supreme Court Library under other
                                  laws. If, within three (3) weeks after receipt by the copyright
                                  owner of a written demand from the directors for such deposit,
                                  the required copies or reproductions are not delivered and the fee
                                  is not paid, the copyright owner shall be liable to pay a fine
                                  equivalent to the required fee per month of delay and to pay to the
                                  National Library and the Supreme Court Library the amount of
                                  the retail price of the best edition of the work. Only the above
                                  mentioned classes of work shall be accepted for deposit by the
                                  National Library and the Supreme Court Library. (Sec. 26, P.D.
                                  No. 49a)
                                  SEC. 192. Notice of Copyright. – Each copy of a work
                                  published or offered for sale may contain a notice bearing the
                                  name of the copyright owner, and the year of its first publication,
                                  and, in copies produced after the creator's death, the year of such
                                  death. (Sec. 27, P.D. No. 49a)
                                  CHAPTER X
                                  MORAL RIGHTS
                                  SEC. 193. Scope of Moral Rights. – The author of a work
                                  shall, independently of the economic rights in Section 177 or the
                                  grant of an assignment or license with respect to such right,
                                  have the right:
                                  193.1. To require that the authorship of the works be
                                  attributed to him, in particular, the right that his name, as far
                                  as practicable, be indicated in a prominent way on the copies,
                                  and in connection with the public use of his work;
                                  193.2. To make any alterations of his work prior to, or to
                                  withhold it from publication;
                                  193.3. To 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; and
                                  193.4. To restrain the use of his name with respect to
                                  any work not of his own creation or in a distorted version of his
                                  work. (Sec. 34, P.D. No. 49)
                                  SEC. 194. 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. (Sec. 35, P.D.
                                  No. 49)
                                  SEC. 195. Waiver of Moral Rights. – An author may waive
                                  his rights mentioned in Section 193 by a written instrument, but
                                  no such waiver shall be valid where its effects is to permit another:
                                  195.1. To use the name of the author, or the title of his
                                  work, or otherwise to make use of his reputation with respect to
                                  any version or adaptation of his work which, because of alterations
                                  therein, would substantially tend to injure the literary or artistic
                                  reputation of another author; or
                                  195.2. To use the name of the author with respect to a
                                  work he did not create. (Sec. 36, P.D. No. 49)
                                  SEC. 196. Contribution to Collective Work. – When an
                                  author contributes to a collective work, his right to have his
                                  contribution attributed to him is deemed waived unless he
                                  expressly reserves it. (Sec. 37, P.D. No. 49)
                                  SEC. 197. Editing, Arranging and Adaptation of Work. –
                                  In the absence of a contrary stipulation at the time an author
                                  licenses or permits another to use his work, the necessary editing,
                                  arranging or adaptation of such work, for publication, broadcast,
                                  use in a motion picture, dramatization, or mechanical or electrical
                                  reproduction in accordance with the reasonable and customary
                                  standards or requirements of the medium in which the work is to
                                  be used, shall not be deemed to contravene the author's rights
                                  secured by this chapter. Nor shall complete destruction of a work
                                  unconditionally transferred by the author be deemed to violate
                                  such rights. (Sec. 38, P.D. No. 49)
                                  SEC. 198. Term of Moral Rights. – 198.1. The rights of
                                  an author under this chapter shall last during the lifetime of the
                                  author and for fifty (50) years after his death and shall not be
                                  assignable or subject to license. 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, such enforcement shall devolve upon either
                                  the author's heirs, and in default of the heirs, the Director of the
                                  National Library.
                                  198.2. For purposes of this Section, "Person" shall mean
                                  any individual, partnership, corporation, association, or society.
                                  The Director of the National Library may prescribe reasonable
                                  fees to be charged for his services in the application of provisions
                                  of this Section. (Sec. 39, P.D. No. 49)
                                  SEC. 199. Enforcement Remedies. – Violation of any of
                                  the rights conferred by this Chapter shall entitle those charged
                                  with their enforcement to the same rights and remedies available
                                  to a copyright owner. In addition, damages which may be availed
                                  of under the Civil Code may also be recovered. Any damage
                                  recovered after the creator's death shall be held in trust for and
                                  remitted to his heirs, and in default of the heirs, shall belong to
                                  the government. (Sec. 40, P.D. No. 49)
                                  CHAPTER XI
                                  RIGHTS TO PROCEEDS IN SUBSEQUENT TRANSFERS
                                  SEC. 200. 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 five percent (5%). This right
                                  shall exist during the lifetime of the author and for fifty (50)
                                  years after his death. (Sec. 31, P.D. No. 49)
                                  SEC. 201. Works Not Covered. – The provisions of this
                                  Chapter shall not apply to prints, etchings, engravings, works of
                                  applied art, or works of similar kind wherein the author primarily
                                  derives gain from the proceeds of reproductions. (Sec. 33, P.D.
                                  No. 49)
                                  CHAPTER XII
                                  RIGHTS OF PERFORMERS, PRODUCERS OF
                                  SOUNDS RECORDINGS AND
                                  BROADCASTING ORGANIZATIONS
                                  SEC. 202. Definitions. – For the purpose of this Act, the
                                  following terms shall have the following meanings:
                                  202.1. "Performers" are actors, singers, musicians,
                                  dancers, and other persons who act, sing, declaim, play in,
                                  interpret, or otherwise perform literary and artistic work;
                                  202.2. "Sound recording" means the fixation of the sounds
                                  of a performance or of other sounds, or representation of sound,
                                  other than in the form of a fixation incorporated in a
                                  cinematographic or other audiovisual work;
                                  202.3. An "audiovisual work or fixation" is a work that
                                  consists of a series of related images which impart the impression
                                  of motion, with or without accompanying sounds, susceptible of
                                  being made visible and, where accompanied by sounds, susceptible
                                  of being made audible;
                                  202.4. "Fixation" means the embodiment of sounds, or of
                                  the representations thereof, from which they can be perceived,
                                  reproduced or communicated through a device;
                                  202.5. "Producer of a sound recording" means the person,
                                  or the legal entity, who or which takes the initiative and has the
                                  responsibility for the first fixation of the sounds of a performance
                                  or other sounds, or the representation of sounds;
                                  202.6. "Publication of a fixed performance or a sound
                                  recording" means the offering of copies of the fixed performance
                                  or the sound recording to the public, with the consent of the right
                                  holder: Provided, That copies are offered to the public in
                                  reasonable quality;
                                  202.7. "Broadcasting" means the transmission by wireless
                                  means for the public reception of sounds or of images or of
                                  representations thereof; such transmission by satellite is also
                                  "broadcasting" where the means for decrypting are provided to
                                  the public by the broadcasting organization or with its consent;
                                  202.8. "Broadcasting organization" shall include a natural
                                  person or a juridical entity duly authorized to engage in
                                  broadcasting; and
                                  202.9. "Communication to the public of a performance or
                                  a sound recording" means the transmission to the public, by any
                                  medium, otherwise than by broadcasting, of sounds of a
                                  performance or the representations of sounds fixed in a sound
                                  recording. For purposes of Section 209, "communication to the
                                  public" includes making the sounds or representations of sounds
                                  fixed in a sound recording audible to the public.
                                  SEC. 203. Scope of Performers' Rights. – Subject to the
                                  provisions of Section 212, performers shall enjoy the following
                                  exclusive rights:
                                  203.1. As regards their performances, the right of
                                  authorizing:
                                  (a) The broadcasting and other communication to the public
                                  of their performance; and
                                  (b) The fixation of their unfixed performance.
                                  203.2. The right of authorizing the direct or indirect
                                  reproduction of their performances fixed in sound recordings, in
                                  any manner or form;
                                  203.3. Subject to the provisions of Section 206, the right
                                  of authorizing the first public distribution of the original and
                                  copies of their performance fixed in the sound recording through
                                  sale or rental or other forms of transfer of ownership;
                                  203.4. The right of authorizing the commercial rental to
                                  the public of the original and copies of their performances fixed in
                                  sound recordings, even after distribution of them by, or pursuant
                                  to the authorization by the performer; and
                                  203.5. The right of authorizing the making available to
                                  the public of their performances fixed in sound recordings, by
                                  wire or wireless means, in such a way that members of the public
                                  may access them from a place and time individually chosen by
                                  them. (Sec. 42, P.D. No. 49a)
                                  SEC. 204. Moral Rights of Performers. – 204.1.
                                  Independently of a performer's economic rights, the performer,
                                  shall, as regards his live aural performances or performances
                                  fixed in sound recordings, have the right to claim to be identified
                                  as the performer of his performances, except where the omission
                                  is dictated by the manner of the use of the performance, and to
                                  object to any distortion, mutilation or other modification of his
                                  performances that would be prejudicial to his reputation.
                                  204.2. The rights granted to a performer in accordance
                                  with Subsection 203.1 shall be maintained and exercised fifty
                                  (50) years after his death, by his heirs, and in default of heirs, the
                                  Government, where protection is claimed. (Sec. 43, P.D. No. 49)
                                  SEC. 205. Limitation on Right. – 205.1. Subject to the
                                  provisions of Section 206, once the performer has authorized the
                                  broadcasting or fixation of his performance, the provisions of
                                  Sections 203 shall have no further application.
                                  205.2. The provisions of Section 184 and Section 185 shall
                                  apply mutatis mutandis to performers. (n)
                                  SEC. 206. Additional Remuneration for Subsequent
                                  Communications or Broadcasts. – Unless otherwise provided in
                                  the contract, in every communication to the public or broadcast
                                  of a performance subsequent to the first communication or
                                  broadcast thereof by the broadcasting organization, the performer
                                  shall be entitled to an additional remuneration equivalent to at
                                  least five percent (5%) of the original compensation he or she
                                  received for the first communication or broadcast. (n)
                                  SEC. 207. Contract Terms. – Nothing in this Chapter
                                  shall be construed to deprive performers of the right to agree by
                                  contracts on terms and conditions more favorable for them in
                                  respect of any use of their performance. (n)
                                  CHAPTER XIII
                                  PRODUCERS OF SOUND RECORDINGS
                                  SEC. 208. Scope of Right. – Subject to the provisions of
                                  Section 212, producers of sound recordings shall enjoy the following
                                  exclusive rights:
                                  208.1. The right to authorize the direct or indirect
                                  reproduction of their sound recordings, in any manner or form;
                                  the placing of these reproductions in the market and the right of
                                  rental or lending;
                                  208.2. The right to authorize the first public distribution
                                  of the original and copies of their sound recordings through sale
                                  or rental or other forms of transferring ownership; and
                                  208.3. The right to authorize the commercial rental to
                                  the public of the original and copies of their sound recordings,
                                  even after distribution by them by or pursuant to authorization
                                  by the producer. (Sec. 46, P.D. No. 49a)
                                  SEC. 209. Communication to the Public. – If a sound
                                  recording published for commercial purposes, or a reproduction
                                  of such sound recording, is used directly for broadcasting or for
                                  other communication to the public, or is publicly performed with
                                  the intention of making and enhancing profit, a single equitable
                                  remuneration for the performer or performers, and the producer
                                  of the sound recording shall be paid by the user to both the
                                  performers and the producer, who, in the absence of any agreement
                                  shall share equally. (Sec. 47, P.D. No. 49a)
                                  SEC. 210. Limitation of Right. – Sections 184 and 185
                                  shall apply mutatis mutandis to the producer of sound recordings.
                                  (Sec. 48, P.D. No. 49a)
                                  CHAPTER XIV
                                  BROADCASTING ORGANIZATIONS
                                  SEC. 211. Scope of Right. – Subject to the provisions of
                                  Section 212, broadcasting organizations shall enjoy the exclusive
                                  right to carry out, authorize or prevent any of the following acts:
                                  211.1. The rebroadcasting of their broadcasts;
                                  211.2. The recording in any manner, including the making
                                  of films or the use of video tape, of their broadcasts for the purpose
                                  of communication to the public of television broadcasts of the
                                  same; and
                                  211.3. The use of such records for fresh transmissions or
                                  for fresh recording. (Sec. 52, P.D. No. 49)
                                  CHAPTER XV
                                  LIMITATIONS ON PROTECTION
                                  SEC. 212. Limitations on Rights. – Sections 203, 208 and
                                  209 shall not apply where the acts referred to in those Sections
                                  are related to:
                                  212.1. The use by a natural person exclusively for his
                                  own personal purposes;
                                  212.2. Using short excerpts for reporting current events;
                                  212.3. Use solely for the purpose of teaching or for scientific
                                  research; and
                                  212.4. Fair use of the broadcast subject to the conditions
                                  under Section 185. (Sec. 44, P.D. No. 49a)
                                  CHAPTER XVI
                                  TERM OF PROTECTION
                                  SEC. 213. Term of Protection. – 213.1. Subject to the
                                  provisions of Subsections 213.2 to 213.5, the copyright in works
                                  under Sections 172 and 173 shall be protected during the life of
                                  the author and for fifty (50) years after his death. This rule also
                                  applies to posthumous works. (Sec. 21, first sentence, P.D. No.
                                  49a)
                                  213.2. In case of works of joint authorship, the economic
                                  rights shall be protected during the life of the last surviving author
                                  and for fifty (50) years after his death. (Sec. 21, second sentence,
                                  P.D. No. 49)
                                  213.3. In case of anonymous or pseudonymous works, the
                                  copyright shall be protected for fifty (50) years from the date on
                                  which the work was first lawfully published: Provided, That
                                  where, before the expiration of the said period, the author's identity
                                  is revealed or is no longer in doubt, the provisions of Subsections
                                  213.1 and 213.2 shall apply, as the case maybe: Provided, further,
                                  That such works if not published before shall be protected for
                                  fifty (50) years counted from the making of the work. (Sec. 23,
                                  P.D. No. 49)
                                  213.4. In case of works of applied art, the protection shall
                                  be for a period of twenty-five (25) years from the date of making.
                                  (Sec. 24(B), P.D. No. 49a)
                                  213.5. In case of photographic works, the protection shall
                                  be for fifty (50) years from publication of the work and, if
                                  unpublished, fifty (50) years from the making. (Sec. 24(C), P.D.
                                  49a)
                                  213.6. In case of audio-visual works including those
                                  produced by process analogous to photography or any process for
                                  making audio-visual recordings, the term shall be fifty (50) years
                                  from the date of publication and, if unpublished, from the date of
                                  making. (Sec. 24(C), P.D. No. 49a)
                                  SEC. 214. Calculation of Term. – The term of protection
                                  subsequent to the death of the author provided in the preceding
                                  Section 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.
                                  (Sec. 25, P.D. No. 49)
                                  SEC. 215. Term of Protection for Performers, Producers
                                  and Broadcasting Organizations. – 215.1. The rights granted to
                                  performers and producers of sound recordings under this law shall
                                  expire:
                                  (a) For performances not incorporated in recordings, fifty
                                  (50) years from the end of the year in which the performance took
                                  place; and
                                  (b) For sound or image and sound recordings and for
                                  performances incorporated therein, fifty (50) years from the end
                                  of the year in which the recording took place.
                                  215.2. In case of broadcasts, the term shall be twenty
                                  (20) years from the date the broadcast took place. The extended
                                  term shall be applied only to old works with subsisting protection
                                  under the prior law. (Sec. 55, P.D. No. 49a)
                                  CHAPTER XVII
                                  INFRINGEMENT
                                  SEC. 216. Remedies for Infringement. – 216.1. Any
                                  person infringing a right protected under this law shall be liable:
                                  (a) To an injunction restraining such infringement. The
                                  court may also order the defendant to desist from an infringement,
                                  among others, to prevent the entry into the channels of commerce
                                  of imported goods that involve an infringement, immediately after
                                  customs clearance of such goods.
                                  (b) Pay to the copyright proprietor or his assigns or heirs
                                  such actual damages, including legal costs and other expenses,
                                  as he may have incurred due to the infringement as well as the
                                  profits the infringer may have made due to such infringement,
                                  and in proving profits the plaintiff shall be required to prove sales
                                  only and the defendant shall be required to prove every element
                                  of cost which he claims, or, in lieu of actual damages and profits,
                                  such damages which to the court shall appear to be just and shall
                                  not be regarded as penalty.
                                  (c) Deliver under oath, for impounding during the pendency
                                  of the action, upon such terms and conditions as the court may
                                  prescribe, sales invoices and other documents evidencing sales,
                                  all articles and their packaging alleged to infringe a copyright
                                  and implements for making them.
                                  (d) Deliver under oath for destruction without any
                                  compensation all infringing copies or devices, as well as all plates,
                                  molds, or other means for making such infringing copies as the
                                  court may order.
                                  (e) Such other terms and conditions, including the payment
                                  of moral and exemplary damages, which the court may deem
                                  proper, wise and equitable and the destruction of infringing copies
                                  of the work even in the event of acquittal in a criminal case.
                                  216.2. In an infringement action, the court shall also have
                                  the power to order the seizure and impounding of any article
                                  which may serve as evidence in the court proceedings. (Sec. 28,
                                  P.D. No. 49a)
                                  SEC. 217. Criminal Penalties. – 217.1. Any person
                                  infringing any right secured by provisions of Part IV of this Act
                                  or aiding or abetting such infringement shall be guilty of a crime
                                  punishable by:
                                  (a) Imprisonment of one (1) year to three (3) years plus a
                                  fine ranging from Fifty thousand pesos (P50,000) to One hundred
                                  fifty thousand pesos (P150,000) for the first offense.
                                  (b) Imprisonment of three (3) years and one (1) day to six
                                  (6) years plus a fine ranging from One hundred fifty thousand
                                  pesos (P150,000) to Five hundred thousand pesos (P500,000) for
                                  the second offense.
                                  (c) Imprisonment of six (6) years and one (1) day to nine
                                  (9) years plus a fine ranging from Five hundred thousand pesos
                                  (P500,000) to One million five hundred thousand pesos (P1,500,000)
                                  for the third and subsequent offenses.
                                  (d) In all cases, subsidiary imprisonment in cases of
                                  insolvency.
                                  217.2. In determining the number of years of
                                  imprisonment and the amount of fine, the court shall consider
                                  the value of the infringing materials that the defendant has
                                  produced or manufactured and the damage that the copyright
                                  owner has suffered by reason of the infringement.
                                  217.3. Any person who at the time when copyright
                                  subsists in a work has in his possession an article which he knows,
                                  or ought to know, to be an infringing copy of the work for the
                                  purpose of:
                                  (a) Selling, letting for hire, or by way of trade offering or
                                  exposing for sale, or hire, the article;
                                  (b) Distributing the article for purpose of trade, or for any
                                  other purpose to an extent that will prejudice the rights of the
                                  copyright owner in the work; or
                                  (c) Trade exhibit of the article in public, shall be guilty of
                                  an offense and shall be liable on conviction to imprisonment and
                                  fine as above mentioned. (Sec. 29, P.D. No. 49a)
                                  SEC. 218. Affidavit Evidence. – 218.1. In an action under
                                  this Chapter, an affidavit made before a notary public by or on
                                  behalf of the owner of the copyright in any work or other subject
                                  matter and stating that:
                                  (a) At the time specified therein, copyright subsisted in
                                  the work or other subject matter;
                                  (b) He or the person named therein is the owner of the
                                  copyright; and
                                  (c) The copy of the work or other subject matter annexed
                                  thereto is a true copy thereof, shall be admitted in evidence in
                                  any proceedings for an offense under this Chapter and shall be
                                  prima facie proof of the matters therein stated until the contrary
                                  is proved, and the court before which such affidavit is produced
                                  shall assume that the affidavit was made by or on behalf of the
                                  owner of the copyright.
                                  218.2. In an action under this Chapter:
                                  (a) Copyright shall be presumed to subsist in the work or
                                  other subject matter to which the action relates if the defendant
                                  does not put in issue the question whether copyright subsists in
                                  the work or other subject matter;
                                  (b) Where the subsistence of the copyright is established,
                                  the plaintiff shall be presumed to be the owner of the copyright if
                                  he claims to be the owner of the copyright and the defendant does
                                  not put in issue the question of his ownership; and
                                  (c) Where the defendant, without good faith, puts in issue
                                  the questions of whether copyright subsists in a work or other
                                  subject matter to which the action relates, or the ownership of
                                  copyright in such work or subject matter, thereby occasioning
                                  unnecessary costs or delay in the proceedings, the court may
                                  direct that any costs to the defendant in respect of the action
                                  shall not be allowed by him and that any costs occasioned by the
                                  defendant to other parties shall be paid by him to such other
                                  parties. (n)
                                  SEC. 219. Presumption of Authorship. – 219.1. 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. This provision shall be
                                  applicable even if the name is a pseudonym, where the pseudonym
                                  leaves no doubt as to the identity of the author.
                                  219.2. 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. (n)
                                  SEC. 220. International Registration of Works. – A
                                  statement concerning a work, recorded in an international register
                                  in accordance with an international treaty to which the Philippines
                                  is or may become a party, shall be construed as true until the
                                  contrary is proved except:
                                  220.1. Where the statement cannot be valid under this
                                  Act or any other law concerning intellectual property.
                                  220.2. Where the statement is contradicted by another
                                  statement recorded in the international register. (n)
                                  CHAPTER XVIII
                                  SCOPE OF APPLICATION
                                  SEC. 221. Points of Attachment for Works under Sections
                                  172 and 173. – 221.1. The protection afforded by this Act to
                                  copyrightable works under Sections 172 and 173 shall apply to:
                                  (a) Works of authors who are nationals of, or have their
                                  habitual residence in, the Philippines;
                                  (b) Audio-visual works the producer of which has his
                                  headquarters or habitual residence in the Philippines;
                                  (c) Works of architecture erected in the Philippines or other
                                  artistic works incorporated in a building or other structure located
                                  in the Philippines;
                                  (d) Works first published in the Philippines; and
                                  (e) Works first published in another country but also
                                  published in the Philippines within thirty (30) days, irrespective
                                  of the nationality or residence of the authors.
                                  221.2. The provisions of this Act shall also apply to works
                                  that are to be protected by virtue of and in accordance with any
                                  international convention or other international agreement to
                                  which the Philippines is a party. (n)
                                  SEC. 222. Points of Attachment for Performers. – The
                                  provisions of this Act on the protection of performers shall apply
                                  to:
                                  222.1. Performers who are nationals of the Philippines;
                                  222.2. Performers who are not nationals of the Philippines
                                  but whose performances:
                                  (a) Take place in the Philippines; or
                                  (b) Are incorporated in sound recordings that are protected
                                  under this Act; or
                                  (c) Which has not been fixed in sound recording but are
                                  carried by broadcast qualifying for protection under this Act. (n)
                                  SEC. 223. Points of Attachment for Sound Recordings.
                                  – The provisions of this Act on the protection of sound recordings
                                  shall apply to:
                                  223.1. Sound recordings the producers of which are
                                  nationals of the Philippines; and
                                  223.2. Sound recordings that were first published in the
                                  Philippines. (n)
                                  SEC. 224. Points of Attachment for Broadcasts. – 224.1.
                                  The provisions of this Act on the protection of broadcasts shall
                                  apply to:
                                  (a) Broadcasts of broadcasting organizations the
                                  headquarters of which are situated in the Philippines; and
                                  (b) Broadcasts transmitted from transmitters situated in
                                  the Philippines.
                                  224.2. The provisions of this Act shall also apply to
                                  performers who, and to producers of sound recordings and
                                  broadcasting organizations which, are to be protected by virtue of
                                  and in accordance with any international convention or other
                                  international agreement to which the Philippines is a party. (n)
                                  CHAPTER XIX
                                  INSTITUTION OF ACTIONS
                                  SEC. 225. Jurisdiction. – Without prejudice to the
                                  provisions of Subsection 7.1(c), actions under this Act shall be
                                  cognizable by the courts with appropriate jurisdiction under
                                  existing law. (Sec. 57, P.D. No. 49a)
                                  SEC. 226. Damages. – No damages may be recovered
                                  under this Act after four (4) years from the time the cause of
                                  action arose. (Sec. 58, P.D. No. 49)
                                  CHAPTER XX
                                  MISCELLANEOUS PROVISIONS
                                  SEC. 227. 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 the
                                  provisions of this Act shall become the property of the Government.
                                  (Sec. 60, P.D. No. 49)
                                  SEC. 228. Public Records. – The section or division of the
                                  National Library and the Supreme Court Library charged with
                                  receiving copies and instruments deposited and with keeping
                                  records required under this Act and everything in it shall be
                                  opened to public inspection. The Director of the National Library
                                  is empowered to issue such safeguards and regulations as may be
                                  necessary to implement this Section and other provisions of this
                                  Act. (Sec. 61, P.D. No. 49)
                                  SEC. 229. Copyright Division; Fees. – The Copyright
                                  Section of the National Library shall be classified as a Division
                                  upon the effectivity of this Act. The National Library shall have
                                  the power to collect, for the discharge of its services under this
                                  Act, such fees as may be promulgated by it from time to time
                                  subject to the approval of the Department Head. (Sec. 62, P.D.
                                  49a)
                                  PART V
                                  FINAL PROVISIONS
                                  SEC. 230. Equitable Principles to Govern Proceedings. –
                                  In all inter partes proceedings in the Office under this Act, the
                                  equitable principles of laches, estoppel, and acquiescence where
                                  applicable, may be considered and applied. (Sec. 9-A, R.A. No.
                                  165)
                                  SEC. 231. Reverse Reciprocity of Foreign Laws. – Any
                                  condition, restriction, limitation, diminution, requirement, penalty
                                  or any similar burden imposed by the law of a foreign country on
                                  a Philippine national seeking protection of intellectual property
                                  rights in that country, shall reciprocally be enforceable upon
                                  nationals of said country, within Philippine jurisdiction. (n)
                                  SEC. 232. Appeals. – 232.1. Appeals from decisions of
                                  regular courts shall be governed by the Rules of Court. Unless
                                  restrained by a higher court, the judgment of the trial court shall
                                  be executory even pending appeal under such terms and conditions
                                  as the court may prescribe.
                                  232.2. Unless expressly provided in this Act or other
                                  statutes, appeals from decisions of administrative officials shall
                                  be provided in the Regulations. (n)
                                  SEC. 233. Organization of the Office; Exemption from the
                                  Salary Standardization Law and the Attrition Law. – 233.1.
                                  The Office shall be organized within one (1) year after the approval
                                  of this Act. It shall not be subject to the provisions of Republic
                                  Act No. 7430.
                                  233.2. The Office shall institute its own compensation
                                  structure: Provided, That the Office shall make its own system
                                  conform as closely as possible with the principles provided for
                                  under Republic Act No. 6758. (n)
                                  SEC. 234. Abolition of the Bureau of Patents,
                                  Trademarks, and Technology Transfer. – The Bureau of Patents,
                                  Trademarks, and Technology Transfer under the Department of
                                  Trade and Industry is hereby abolished. All unexpended funds
                                  and fees, fines, royalties and other charges collected for the
                                  calendar year, properties, equipment and records of the Bureau
                                  of Patents, Trademarks and Technology Transfer, and such
                                  personnel as may be necessary are hereby transferred to the Office.
                                  Personnel not absorbed or transferred to the Office shall enjoy
                                  the retirement benefits granted under existing law, otherwise,
                                  they shall be paid the equivalent of one (1) month basic salary for
                                  every year of service, or the equivalent nearest fractions thereof
                                  favorable to them on the basis of the highest salary received. (n)
                                  SEC. 235. Applications Pending on Effective Date of Act.
                                  – 235.1. All applications for patents pending in the Bureau of
                                  Patents, Trademarks and Technology Transfer shall be proceeded
                                  with and patents thereon granted in accordance with the Acts
                                  under which said applications were filed, and said Acts are hereby
                                  continued to be enforced, to this extent and for this purpose only,
                                  notwithstanding the foregoing general repeal thereof: Provided,
                                  That applications for utility models or industrial designs pending
                                  at the effective date of this Act, shall be proceeded with in
                                  accordance with the provisions of this Act, unless the applicants
                                  elect to prosecute said applications in accordance with the Acts
                                  under which they were filed.
                                  235.2. All applications for registration of marks or trade
                                  names pending in the Bureau of Patents, Trademarks and
                                  Technology Transfer at the effective date of this Act may be
                                  amended, if practicable to bring them under the provisions of
                                  this Act. The prosecution of such applications so amended and
                                  the grant of registrations thereon shall be proceeded with in
                                  accordance with the provisions of this Act. If such amendments
                                  are not made, the prosecution of said applications shall be
                                  proceeded with and registrations thereon granted in accordance
                                  with the Acts under which said applications were filed, and said
                                  Acts are hereby continued in force to this extent for this purpose
                                  only, notwithstanding the foregoing general repeal thereof. (n)
                                  SEC. 236. Preservation of Existing Rights. –Nothing
                                  herein shall adversely affect the rights on the enforcement of
                                  rights in patents, utility models, industrial designs, marks and
                                  works, acquired in good faith prior to the effective date of this
                                  Act. (n)
                                  SEC. 237. Notification on Berne Appendix. – The
                                  Philippines shall by proper compliance with the requirements
                                  set forth under the Appendix of the Berne Convention (Paris Act,
                                  1971) avail itself of the special provisions regarding developing
                                  countries, including provisions for licenses grantable by competent
                                  authority under the Appendix. (n)
                                  SEC. 238. Appropriations. – The funds needed to carry
                                  out the provisions of this Act shall be charged to the appropriations
                                  of the Bureau of Patents, Trademarks, and Technology Transfer
                                  under the current General Appropriations Act and the fees, fines,
                                  royalties and other charges collected by the Bureau for the calendar
                                  year pursuant to Sections 14.1 and 234 of this Act. Thereafter
                                  such sums as may be necessary for its continued implementations
                                  shall be included in the annual General Appropriations Act. (n)
                                  SEC. 239. Repeals. – 239.1. All Acts and parts of Acts
                                  inconsistent herewith, more particularly Republic Act No. 165,
                                  as amended; Republic Act No. 166, as amended; and Articles 188
                                  and 189 of the Revised Penal Code; Presidential Decree No. 49,
                                  including Presidential Decree No. 285, as amended, are hereby
                                  repealed.
                                  239.2 Marks registered under Republic Act No. 166 shall
                                  remain in force but shall be deemed to have been granted under
                                  this Act and shall be due for renewal within the period provided
                                  for under this Act and, upon renewal, shall be reclassified in
                                  accordance with the International Classification. Trade names
                                  and marks registered in the Supplemental Register under Republic
                                  Act No. 166 shall remain in force but shall no longer be subject to
                                  renewal.
                                  239.3. The provisions of this Act shall apply to works in
                                  which copyright protection obtained prior to the effectivity of this
                                  Act is subsisting: Provided, That the application of this Act
                                  shall not result in the diminution of such protection. (n)
                                  SEC. 240. Separability. – If any provision of this Act or
                                  the application of such provision to any circumstances is held
                                  invalid, the remainder of the Act shall not be affected thereby. (n)
                                  SEC. 241. Effectivity. – This Act shall take effect on 1
                                  January 1998. (n)
                                  Approved, June 6, 1997.


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