MALACAANG

Manila
PRESIDENTIAL DECREE No. 463 May 17, 1974
PROVING FOR A MODERNIZED SYSTEM OF ADMINISTRATION
AND DISPOSITION OF MINERAL LANDS AND TO PROMOTE AND
ENCOURAGE THE DEVELOPMENT AND EXPLOITATION
THEREOF
WHEREAS, mineral production is a major support of the national
economy, and therefore the intensified discovery, exploration,
development and wise utilization of the country's mineral resources are
urgently needed for national development.
WHEREAS, the existence of large undeveloped mineral areas and the
proliferation of small mining claims deter modern development of the
country's mineral resources and urgently require well-planned
exploration, development and systematic exploitation of mineral lands
to accelerate production and to bolster the national economy.
WHEREAS, effective and continuous mining operations require
considerable outlays of capital and resources, and make it imperative
that persons possessing the financial resources and technical skills for
modern exploratory and development techniques be encouraged to
undertake the exploration, development and exploitation of our mineral
resources;
WHEREAS, the foregoing objectives cannot be achieved within the
shortest possible time without removing the deficiencies and limitations
of existing laws and improving the same in order to provide for a
modernized administration and disposition of mineral lands and to
promote and encourage the development and exploitation thereof.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby issue this Decree revising Commonwealth Act No. 137
otherwise known as the Mining Act, as amended, as follows:
Chapter I
TITLE AND DEFINITIONS
Section 1. Short Title. This Decree shall be known and may be cited
as the "Mineral Resources Development Decree of 1974".
Section 2. Definition of Terms. As used in and for the purpose of this
Decree, the following terms, whether in the singular or plural, unless
the context indicates otherwise, shall have the following meanings:

(f) "Minerals" means all naturally occurring inorganic

substances in solid, liquid or any intermediate state including
coal. Soil which supports organic life, sand and gravel,
guano, petroleum, geothermal energy and natural gas are
included in this term but are governed by special laws.
(g) "Mineral Deposit" means a natural deposit or
accumulation of minerals.
(h) "Mineral Lands" are those lands in which minerals exist in
sufficient quantity and grade to justify the necessary
expenditures in extracting and utilizing such minerals.
(i) "Quarry Resources" means any common stone or other
common mineral substances as the Director may declare to
be quarry resources such as, but not restricted to, marl,
marble, granite, volcanic cinders, basalt, tuff and rock
phosphate, Provided they contain no metal or metals or
other valuable minerals in economically workable quantities.
(j) "Exploration" is the examination and investigation of lands
supposed to contain valuable minerals, by drilling, trenching,
shaft sinking, tunneling, test pitting and other means, for the
purpose of probing the presence of mineral deposits and the
extent thereof.
(k) "Development" refers to steps necessarily taken to reach
an orebody or mineral deposit so that it can be mined.
(l) "Exploitation" means the extraction and utilization of
mineral deposits.
(m) "Mining" or "to mine" means to extract, remove, utilize
minerals, and include operations necessary for that purpose.
(n) "Qualified person" a Filipino citizen, of legal age with
capacity to contract, or a corporation or partnership
registered with the Securities and Exchange Commission at
least 60% of the capital of which is owned by Filipino
citizens.
(o) "Lessee" may include a leaseholder, claim owner or
operator as the context of the provisions of this Decree may
indicate.
(p) "Regulations" means the rules and administrative orders
promulgated by the Secretary to implement the provisions of
this Decree, or issued by the Director as to such matters as
may be delegated to him by the Secretary.

(a) "State" means the Republic of the Philippines.

(b) "President" means the President of the Republic of the
Philippines.
(c) "Government" means the Government of the Republic of
the Philippines.
(d) "Secretary" means the Secretary of Natural Resources.
(e) "Director means the Director of Mines.

Chapter II
OWNERSHIP OF MINERAL LANDS AND MINERAL DEPOSITS
Section 3. State Ownership of Mineral Deposits. All mineral deposits in
public or private lands within the territorial limits of the Philippines
whether found in, on, or under the surface of dry lands, beds of creeks,
rivers, lakes, or other submerged lands within the territorial waters or
on the continental shelf or its analogue in an archipelago seaward from
the shores of the Philippines which are not under the jurisdiction of
other countries, belong to the State, inalienably and imprescriptively,
and the administration, disposition and exploitation thereof shall be
governed by this Decree and by rules and regulations promulgated
thereunder and other laws.

Section 4. Minerals Excluded from other Rights to Lands. The

ownership or the right to use public or private lands whether exposed
or submerged, for agricultural, logging, industrial, commercial,
residential, petroleum exploration and/or exploitation or purposes or
any purpose other than mining, does not include the ownership of, nor
the right to develop, exploit or utilize, the mineral deposits found in, on
or under the surface of such lands, except with respect to quarry
resources as provided for this Decree.
Section 5. Mineral Deposits Open to Location and Lease. Subject to
any existing rights or reservations, all valuable mineral deposits in
public land including timber or forest land as defined in Presidential
Decree No. 389, otherwise known as the Forestry Reform Code or in
private land not closed to mining location, and the land which they are
found, shall be free and open to prospecting, occupation, location and
lease.
Chapter III
MINERAL RESERVATIONS
Section 6. Establishment and Reversion of Mineral Reservations.
Upon the recommendation of the Secretary, based on the reports
submitted by the Director, the President may set aside and establish
an area of the public domain as a mineral reservation and prescribe
the terms and conditions for its disposition and operation, or may also
alter or modify the boundaries of any mineral reservation from time to
time or revert any mineral reservation to the public domain without
prejudice to any prior subsisting rights.
Section 7. Existing Claims in Reservation. Whenever lands are
reserved for purposes other than mining, the rights of the claim owners
or lessees or valid mining claims existing within the reservation at that
time of its establishment shall not be prejudiced or impaired.
Section 8. Exploration and Exploitation of Reserved Lands. When
lands within reservations, which have been established for purposes
other than mining, are found to be more valuable for their mineral
contents, they may, upon recommendation of the Secretary be
withdrawn from such reservation by the President and established as a
mineral reservation.
When practicable, prospecting and exploration of minerals in reserved
lands may be undertaken by the Bureau of Mines or by any proper
government agency. Said reservation shall be opened to mining by the
Government or its instrumentality or by any qualified person through
competitive bidding under such terms and conditions as may be
prescribed by the Secretary, or through contracts of service with any
party or parties, domestic or foreign, duly qualified as to organization,
finances, resources, experience and technical competence, subject in
any case to the approval of the President.
In the event that the proper government agencies cannot undertake
the prospecting and exploration of minerals in the reserved lands,
qualified persons or corporations may be permitted to undertake such
prospecting and exploration in accordance with the rules and
regulations promulgated by the Secretary. The right to exploit therein
shall be awarded by the President under such terms and conditions as
recommended by the Director and approved by the Secretary
Provided, That the persons or corporations who undertook prospecting
and exploration of said area shall be given priority.
Section 9. Reservation Closed to Mining Location. Mineral
reservations are closed to mining location; Provided, however, That the
Government may, prospect, develop and exploit such reservations,
through its agencies or instrumentalities or through an independent

contractor selected by negotiated contract or after a public bidding

which shall be conducted by the Secretary through the Director after
proper notice duly published, subject in any case to the approval of the
President.
Section 10. Offshore Areas Established as Mineral Reservation. All
submerged lands beneath the territorial waters and on the continental
shelf or its analogue in an archipelago, are hereby established as
mineral reservations subject to existing rights and the President may
declare these reservations, or parts thereof, open or closed to mining
location to be disposed of in the same manner as other mineral
reservations. Submerged lands are those under water during low tide
as determined by the Bureau of Coast and Geodetic Survey.
Chapter IV
LOCATION OF CLAIMS
Section 11. Locations in Public and Private Lands. Only qualified
persons may locate mining claims within public and private lands.
However, a prospector may locate for another person: Provided, That
he is first duly authorized by means of a public instrument registered
with the mining recorder concerned before undertaking such location
work.
Section 12. Entry to Public and Private Lands. A person who desires
to conduct prospecting or other mining operations within public lands
covered by concessions or rights other than mining shall first obtain the
written permission of the government official concerned before entering
such lands. In the case of private lands, the written permission of the
owner or possessor of the land must be obtained before entering such
lands. In either case, if said permission is denied, the Director, at the
request of the interested person may intercede with the owner or
possessor of the land. If the intercession fails, the interested person
may bring suit in the Court of First Instance of the province where the
land is situated. If the court finds the request justified, it shall issue an
order granting the permission after fixing the amount of compensation
and/or rental due the owner or possessor: Provided, That pending final
adjudication of such amount, the court shall upon recommendation of
the Director permit the interested person to enter, prospect and/or
undertake other mining operations on the disputed land upon posting
by such interested person of a bond with the court which the latter shall
consider adequate to answer for any damage to the owner or
possessor of the land resulting from such entry, prospecting or any
other mining operations.
Section 13. Areas Closed to Mining Location. No prospecting and
location shall be allowed:
(a) In military, mineral and other reservations, except by the
Government;
(b) In lands covered by valid and subsisting mining claims
located under previous mining laws;
(c) In lands covered by mining claims or leases acquired in
accordance with the provisions of this Decree; and
(d) Near or under buildings, cemeteries, bridges, highways,
waterways, railroads, reservoirs, dams, or any other public
or private works, unless otherwise authorized by the
Department of Public Works, Transportation and
Communications.

The Secretary shall, upon recommendation of the Director,

prescribe in detail the regulations implementing the various
restrictions under this Section.
Section 14. Size of Mining Claim. For purposes of registration of a
mining claim under this Decree, the Philippine territory and its shelf are
hereby divided into meridional blocks or quadrangles of one-half
minute (1/2) of latitude and longtitude, each block or quadrangle
containing area of eighty-one (81) hectares, more or less.
A mining shall cover one such block although a lesser area may be
allowed if warranted by attendant circumstances, such as geographical
and other justifiable considerations as may be determined by the
Director: Provided, That in no case shall the locator be allowed to
register twice the area allowed for lease under Section 43 hereof.
Section 15. Declaration of Location of a Mining Claim. A qualified
person may locate a mining claim by filing with the Director or his
designated deputy, a declaration of location covering a meridional
block or fraction thereof constituting his mining in a form prescribed for
the purpose.
Section 16. Recording of Declaration of Location, Ministerial. Upon
payment of the required filing fee, recording of a duly accomplished
and notarized declaration of location for a mining claim shall be
ministerial on the part of the recorder concerned.
Section 17. Mining Register. The Director shall cause a mining register
to be kept in the Bureau of Mines, or in such other places as he may
designate, on which all instruments concerning mining rights, such as
acquisition, sub-lease, operating agreements, transfers, assignments,
abandonment, cancellation and others, are recorded and registered in
chronological order of receipt upon payment of the required fee. On
each instrument recorded and registered, shall be annotated the date
and time of filing, document number, page of register, register book
number, year series, the amount of fee paid, and the official receipt
number.
Section 18. System and Effect of Recording Mining Instruments. All
declarations of location, affidavits, authority, and other documents or
instruments regarding affecting the possession of mining area or any
right or title thereto, or interest or interest therein shall be recorded in
the order of their receipt by the Mining Recorder after payment of the
required fee, and from and after such recording, all documents or
instruments in writing shall constitute notice to all persons and to the
whole world of the contents of the same.
Section 19. Registration, Filing and Other Fees. The Director is
authorized to charge reasonable filing and other fees as he may
prescribe by regulation for services to be rendered by the Bureau of
Mines. The registration and filing fees shall accrue to the Mines
Special Fund, and other fees to the Fiduciary Fund.
Section 20. Right Acquired by Registration of the Declaration of
Location. The recording of a declaration of location for a mining claim
shall give the claim owner, his successor and assigns, the right to
occupy, explore and develop said claim from the date of the recording
thereof subject to the provisions of Section 12 hereof.
Section 21. Voluntary Abandonment of Mining Claim. A claim owner
may, at any time before a lease is granted, voluntarily abandon his
mining claim by filing for record with the Director or his deputy, an
affidavit of abandonment, and from the date of the recording of such
affidavit all the rights and interests in such claim shall be deemed to

have ceased: Provided, That the original locator or his successor or

assigns shall not be allowed to relocate directly or indirectly the same
claim.
Chapter V
MINING RECORDERS, DISTRICTS AND REGIONS
Section 22. Designation of Mining Recorders. The Director shall be
responsible for the proper recording of mining instruments and
documents and he is hereby authorized to designate such deputies in
the Bureau of Mines whom he considers qualified to perform the duties
of the mining recorder. Subject to the approval of the Secretary, the
Director shall be issue rules and regulations to insure proper recording
of mining instruments and documents.
Section 23. Mining Regions. The existing mining regions with offices in
Cebu, Baguio, Daet and Surigao shall be maintained. However, the
Secretary, upon recommendation of the Director, may establish other
mining regions as the need arises, the boundaries of the
corresponding provinces. When local conditions require, two or more
provinces may be included in the same mining region.
Chapter VI
ANNUAL WORK OBLIGATIONS
Section 24. Expenditure Required. A claim owner under this Decree
and under the Mining Act (Commonwealth Act No. 137) as amended,
shall perform annual work obligations on his mining claim, the value of
which shall not be less than the following amounts:
Before the lease contract is granted, per hectare per calendar year P
20.00
After the lease contract is granted, per hectare per calendar year
P100.00
A holder of a patentable claim shall before the grant of the patent
applied for, perform annual work obligations on his mining claim, the
value of which shall not be less than two hundred fifty pesos (P250.00)
per hectare per calendar year.
The annual work obligations for each mining claim shall start with the
calendar year immediately following the date of recording of such
mining claim, and in the case of patentable and other claims the
annual work obligations shall start with the calendar year following the
date of the approval of this Decree.
Section 25. Group Development. The claim owner or lessee may
concentrate all the annual work obligations on any one or more of
several contiguous or geologically related mining claims in one
province, if it can be shown to the Director that such concentration of
work will be most advantageous and beneficial in the development and
operation of said mining claims: Provided, That any expenditure in any
calendar year in excess of the minimum amount required for work
obligations per hectare may be carried forward and credited to the
work obligations of the group claims for the succeeding year or years:
Provided, further, That, if the expenditure incurred for any claim in less
than that required in any year, the difference shall be paid to the
Bureau of Mines which shall accrue to its Mines Special Fund.
Section 26. Legitimate Expenditure for Work Obligations. Expenses
for prospecting, exploration, and development work, including the cost
of labor, materials and equipment used, and the fees and charges paid
for geodetic, geological, geophysical, geochemical and other related

surveys and for laboratory and pilot plant testing shall be considered
legitimate expenditures for work obligations. The cost of buildings,
machinery, equipment, roadways or other works shall be considered
expenditures for work obligations if it is clearly shown that they are
essential to the exploration and development of, or will facilitate the
extraction of minerals and from, mining claims.
Section 27. Proof of Annual Work Obligations. The claim owner shall
submit proof of compliance with the annual work obligations by filing a
sworn statement with the Director with sixty (60) days from the end of
the year in which the work obligation is required, in form to be
prescribed by regulation. Failure of the claim owner to file such proof of
compliance for two (2) consecutive years shall cause the forfeiture of
all rights to his claim.
Chapter VII
LEASE SURVEY OF MINING CLAIMS

period: Provided, That the claim owner shall file a surety bond in an
amount to be fixed by the Director.
Notwithstanding the foregoing provisions of this section, the Director
may allow the extraction and removal of representative samples for
laboratory, scientific and test purposes, in such quantity as the Director
may determine.
Chapter XVIII
LEASE OF MINING CLAIMS
Section 34. Time Limit to Apply for Lease. Application for lease of
mining claims shall be filed with the Director within two (2) years from
the date of the recording thereof. Failure to file the said application
within this period automatically constitutes absolute abandonment of
the mining claims, and the land embraced therein shall be open to
location by qualified persons other than the original locator, his heirs,
successors and assigns.

Section 28. Lease Surveys. Application for the survey of mining claim
for lease purposes shall be filed with the Director within one (1) year
from the date of the recording thereof. The Director may reject such
application for cause or issue the corresponding order for survey.
Failure to file the said application within this period shall constitute
automatic abandonment of the mining claims and the lands embraced
therein shall thereupon be open to location by qualified persons other
than the original locator, his heirs successors or assigns.

Section 35. Application for Lease for Contiguous Claims. A single

application for lease may be filed and a single lease be granted
covering adjoining or contiguous mining claims belonging to the same
claim owner: Provided, That the total area under a single lease
application shall not exceed the maximum number of hectares that
may be held or leased in any one province by the applicant.

Section 29. Execution of Surveys. Survey of mining claims may be

performed by a duly licensed geodetic engineer; Provided, That no
goedetic engineer shall perform surveys of mining claims for lease,
patent or permit purposes without the prior authority of the Director.
Geodetic engineers shall comply with additional conditions including
the posting of a bond to answer for the faithful and diligent execution of
the survey. The Director, may issue such rules and regulations
governing the manner of execution and verification of surveys of
mining claims. All expenses of the survey shall be for the account of
the applicant.

Section 36. Application Form. All applications for mining lease shall be
in the prescribed form and under oath, it shall state, among others, the
full name, address, citizenship, civil status of the applicant, his place
and date of birth. If the applicant is a partner or corporation, the
application shall be accompanied by (1) certified copy of duly
registered articles of partnership or incorporation, (2) a certified copy of
the duly registered by-laws, (3) a statement under oath certifying to the
percentage of ownership of the partnership or corporation by Filipinos
and aliens, and (4) a certified list of the officers, directors and partners.
There should be attached to each application a report prepared by a
duly licensed geologist or mining engineer to the effect that the mining
claim shows adequate mineralization.

Section 30. Adjustment to Astronomical Meridian. In all surveys the

astronomical meridian shall be made within the limits of accuracy
prescribed by regulation. After the technical adjustments have been
made, the resulting bearings and distances between consecutive
corners as computed from the adjusted data shall be adopted and
recognized.
Section 31. Monumenting of Surveys. At the time of the survey, it shall
be the responsibility of the geodetic engineer to mark the corners of
mining claims with concrete monuments or with such other objects of
as permanent nature as may be prescribed by regulations.
Section 32. Period for Submittal of Lease Survey Returns. A geodetic
engineer ordered to survey mining claims shall submit the survey
returns to the Director within one (1) year after receipt of survey order.
Failure to submit the survey returns within said period is sufficient
cause for cancellation of the surveyor's surety bond and or cancellation
of the survey order. No extension of period within which to submit
survey returns shall be allowed unless for reasons of force majeure.
Section 33. Mines Temporary Permit. Pending the issuance of the
lease contract the claim owner may apply with the Director for a mines
temporary permit to extract and dispose of the minerals from his claim,
subject to the payment of taxes and royalties due and to the further
condition that the claim owner has complied with his other obligations
on the claim. This mines temporary permit may be issued by the
Director for a period of one (1) year, renewable once only for a like

Section 37. Qualification of Lease Applicant. In addition to the

qualifications required of a locator, an applicant for a mining lease shall
present proof of the availability of technical competence and financial
resources sufficient to develop the claim applied for. The regulations
shall prescribe in detail the additional qualifications herein required.
Section 38. Application Forms Part of Lease Contract. All statements
in the application and those submitted in support thereof shall be
considered as conditions of the lease. Any falsehood made in these
statements or omission which may alter, change or affect substantially
the facts set forth therein shall constitute sufficient cause for denial of
the application or the cancellation of the lease granted.
Section 39. Publication of Lease Application. If the Director finds the
application in order, he shall cause the publication of the notice of the
application once a week for two (2) consecutive weeks in two (2)
newspapers, one of general circulation published in Manila either in
Pilipino or English and another published in the municipality or
province where the mining claim situated, if there be such newspaper,
otherwise in the newspaper published in the nearest municipality or
province. The Director shall also cause posting of the said notice of the
bulletin board of the Bureau of Mines for two (2) consecutive weeks
and shall order the applicant to post for the same period the notice and
a copy of the approved plan of the mining claims on the bulletin boards
of the municipal building of the municipality, and the mines regional
office where the mining claim is located. Immediately after the

expiration of the period of publication, the applicant shall file with the
Director an affidavit attesting to the fact that the required notices and
approved plan have been posted at the required places and during the
specified period.
Section 40. Issuance of Mining Lease Contract. If no adverse claim is
filed within fifteen (15) days after the first date of publication, it shall be
conclusively presumed that no such adverse claim exists and
thereafter no objection from third parties to the grant of the lease shall
be heard, except protest pending at the time of publication, and the
Secretary shall approve and issue the corresponding mining lease
contract after the area has been verified as to its mineralization and the
due execution of the lease survey, which contract shall be for a period
not exceeding twenty-five (25) years, renewable under such terms and
conditions as may be provided by law for another period not exceeding
twenty-five (25) years. Upon the expiration of the lease, the operation
of the mine may be undertaken by the Government through one of its
agencies or through a qualified independent contractor. The contract
for the operation of a mine by an independent contractor shall be
awarded to the highest bidder in a public bidding held after due
publication of the notice thereof: Provided, That the lease shall have
the right to equal the highest bid upon reimbursement of all reasonable
expenses of the highest bidder.
Section 41. Withdrawn from Lease. The lessee may, at any time
during the life of the lease, apply, for the cancellation of the lease
contract due to force majeure or for the other causes which render
continued mining operations no longer profitable.
Section 42. Mining Lease on Private Land. A mining lease may be
granted on mining claims located on private lands: Provided, That the
applicant shall submit a written authority of the landowner. If the
landowner refuses or fails to enter into an agreement with the
applicant, the latter shall have the remedy provided for in Section 12 of
this Decree.
Section 43. Maximum Lease Area Allowed. The maximum area of
mining claims which may be leased shall be as follows:
(1) In any one province:
(a) To individuals, Five Hundred Hectares;
(b) To Mining Partnerships or Corporations, Five
Thousand Hectares;

claims covered by the lease, continued vertically downward; to

remove, process, and otherwise utilize the mineral deposits for his own
benefit; and to use the lands covered by the lease for the purpose or
purposes specified therein: Provided, however, That the Secretary
shall reverse the right to grant and use easements in, over, through, or
upon the said claims as may be needed by other claim owners or
lessees for right-of-way to enable them to have access to and/or
facilitate the operation of, their mining claims: Provided, further, That in
case of conflict of interest between claim owners for this purpose the
Director is hereby authorized to mediate; Provided, furthermore, That
in granting any lease under this Decree the Government reserves the
right to lease, or otherwise dispose of the surface of the lands
embraced within such lease which is not needed by the lessee in
extracting and removing the mineral deposits from his mining claims,
or in the beneficiation of the ores extracted therefrom: Provided, finally,
That a lessee may on his own or through the Government, enter into a
service contract with a qualified domestic or foreign contractor for the
exploration, development and exploitation of his claims and the
processing and marketing of the product thereof, subject to the rules
and regulations that shall be promulgated by the Director, with the
approval of the Secretary, and on the condition that if the service
contractor will provide the necessary financial and technical resources,
he may be paid from the proceeds of the operation not exceeding forty
per centum (40%) thereof. Service contracts shall be approved by the
Secretary upon recommendation of the Director.
Section 45. Laws and Regulations Considered Part of Lease Contract.
All mining lease contracts shall contain a provision that the lessee shall
comply with the provisions of this Decree and with all the rules and
regulations promulgated concerning the safe operation and sanitary
upkeep of the mines as well as pollution control laws and regulations.
Section 46. Termination of Lease Rights. Immediately after a mining
lease contract cancelled or otherwise terminated, the Director shall
cause the same to be entered in the mining register and a notice
thereof shall be posted on the bulletin board of the Bureau of Mines,
and the lands covered thereby shall thereupon be open to location and
lease by other qualified persons.
Section 47. Removal of Improvements. The lessee shall within one (1)
year from the abandonment, termination or cancellation of the lease,
remove all improvements on the mining premises, except roads and
bridges; otherwise said improvements shall become the property of the
Government.
Chapter IX
PROTEST, ADVERSE CLAIMS AND APPEALS

(2) In the entire Philippines:

(a) To individuals, One Thousand Hectares;
(b) To Mining Partnerships or Corporations, Ten
Thousand Hectares.
The foregoing provisions of this section notwithstanding, the Director
with the approval of the Secretary, may allow an applicant to lease a
larger area not exceeding 10,000 hectares in any one province,
depending upon the nature of the deposit, the kind of minerals, located
and other circumstances inherent in the operation of the mining claim
justifying the grant.
Section 44. Mining Lease Rights. A mining lease contract shall grant to
the lessee, his heirs, successors, and assigns the right to extract all
mineral deposits found on or underneath the surface of his mining

Section 48. Protest and Adverse Claims. Any protest or adverse claim
of any nature whatsoever involving the right to possession, lease,
exploration or exploitation of any mining claim in any part of the
Philippines shall be filed with the Bureau of Mines for investigation and
decision pursuant to the provisions of Presidential Decree No. 309 and
Letter of Instructions No. 119, as amended by Letter of Instruction No.
135. The protest or adverse claim shall be accompanied by all plans,
documents, and other data upon which the protest or adverse claim is
based.
In the case of an adverse claim against a lease application, filed under
Section 34 hereof, such adverse claim shall be filed within fifteen (15)
days after the first date publication of the notice of lease application if
such claim was not previously investigated and decided under
Presidential Decree No. 309. When an adverse is filed under this
paragraph, all proceedings, except the publication of the notice of
application for lease, the submittal of the affidavit in connection

therewith and the processing of applications for temporary permit, shall

be stayed until the controversy is settled or decided by the Director:
Provided, That the operations and production under a mines temporary
permit issued prior to the adverse claim shall be allowed to continue
subject to the provisions of Section 33 concerning the posting of
bonds.
Section 49. Priority Rights. In case of conflict of mining claims, priority
of recording shall determine the right to the area, notwithstanding any
defect in form or technically as provided for in Presidential Decree No.
99-A: Provided, That in case of discrepancy between the area
described in the declaration of location and the actual area occupied
on the ground, the former shall prevail, subject to any question as to
having complied with all the requirements of this Decree.
Section 50. Appeals. Any part not satisfied with the decision or order
of the Director may, within five (5) days from receipt thereof, appeal to
the Secretary. Decisions of the Secretary are likewise appealable
within five (5) days from receipts thereof by the affected party to the
President of the Philippines whose decision shall be final and
executory.
In all cases, the decision, or order of the Director and the Secretary
shall be immediately executory notwithstanding the appeal, unless the
President of the Philippines directs otherwise, and the prevailing party
has the right to immediately take possession, exploration and
exploitation of the mining claims: Provided, however, That the rules
and regulations embodied in Mines Administrative Order No. 50,
pertaining to the deposit in escrow of the prescribed percentage of the
proceeds of the gross sales of the mines produced, shall be complied
with for the protection of the interest of the party to whom the mining
claim are ultimately and finally awarded.

Any tax-exempt article acquired under this section shall not be sold,
transferred or otherwise disposed of within a period of five (5) years
from the time of such acquisition: Provided, That any such sale,
transfer or other disposal of such articles within the aforesaid period
shall be subject to the payment of all taxes and duties which shall have
been due at the time of such acquisition, together with all interests and
surcharges with amount shall constitute a lien on the articles sold.
All mining claims, improvements thereon and mineral products derived
therefrom shall likewise be exempt from the payment of all taxes,
except income tax, for the same period provided for in the first
paragraph of this section.
The exemption provided for in this section shall be subject to such
rules and regulations that shall be issued by the Director and approved
by the Secretary.
Section 54. Notice of Revenue Payments to Director. Within thirty (30)
days from the date of the payment of the rentals or royalties due on
any mining lease or minerals extracted therefrom, the lessee submit to
the Director copies of receipt of such payment, and the names of the
mining claims, lease number, and the names of persons, partnerships
or corporations for which such payment has been made. Failure to
submit copies of such receipt, information or document shall be
deemed as non-payment of same and may cause the cancellation of
the lease contract. The Director shall keep a record of receipt of such
information.
Section 55. Unpaid Rentals and Royalties. If a mining lease contract is
cancelled or otherwise terminated, the lessee shall be liable for all
unpaid rentals and royalties due up to the time of the termination or
cancellation of the lease.

Chapter X
FISCAL PROVISIONS

Chapter XI
AUXILIARY MINING RIGHTS

Section 51. Occupation Fees, Rentals, Royalties and Taxes. The claim
owner shall pay the occupation fees, rentals, royalties and taxes on his
mining claims and on the minerals extracted therefrom as provided for
in the National Internal Revenue Code, as amended: Provided, That
the failure to pay all taxes and fees due the government for two (2)
consecutive years shall cause the cancellation of the mining claim and
the reopening of the same for relocation by other parties.

Section 56. Mine's Timber Rights. Any provision of law to the contrary
notwithstanding, a claim owner shall have the right to cut trees or
timber within his mining claims, subject to the rules and regulations of
the Bureau of Forest Development, as may be necessary for the
exploration, development, exploitation, utilization or operation of his
mining claims: Provided, That if the land covered by such mining
claims are already covered by existing timber concessions, the amount
of timber needed and the manner of cutting and removal thereof shall
be determined by the Director, the claim owner and the timber
concessionaire: Provided, further, That in case no agreement can be
reached between the claim owner and the timber concessionaire, the
matter shall be submitted to the Secretary whose decision shall be
final.

Section 52. Power to Levy Taxes on Mines, Mining Operations and

Mineral Products. Any law to the contrary notwithstanding no province,
city, municipality, barrio or municipal district shall levy and collect taxes,
fees, rentals, royalties or charges of any kind whatsoever on mines,
mining claims, mineral products, or on any operation, process or
activity connected therewith.
Section 53. Tax Exemptions. Machineries, equipment, tools for
production, plants to convert mineral ores into saleable form, spare
parts, supplies, materials, accessories, explosives, chemicals and
transportation and communication facilities imported by any for the use
of new mines and old mines which resume operation, when certified as
such by the Secretary upon recommendation of the Director, are
exempt from the payment of customs duties and all taxes except
income tax for a period starting from exploration and ending five (5)
years from the first date of actual commercial production of saleable
mineral products: Provided, That such articles are not locally available
in reasonable quantity, quality and price and are necessary or
incidental in the proper operation of the mine.

The claim owner granted a timber right shall be obligated to perform

reforestation work within the mining claims in accordance with
regulations of the Bureau of Forest Development.
Section 57. Miner's Water Rights. A claim owner shall also have water
rights for the development or operation of his mining claims upon
application filed with the Director of the Bureau of Public Works in
accordance with the existing laws of water and the rules and
regulations promulgated thereunder: Provided, That water rights
already granted or vested through long use, recognized and
acknowledged by the local customs, laws and decisions of courts, shall
not thereby be impaired: Provided, further, That the Government
reserves the right to regulate water rights and the reasonable and
equitable distribution of water supply so as to prevent the monopoly of
the use thereof.

Section 58. Easement Rights. When mining claims are so situated that
for purposes of more convenient exploration, development,
exploitation, utilization and operation thereof by the claim owner or
lessee, it is necessary to build, construct or install on mining claims or
lands owned, occupied or leased by other person, roads, railroads,
mills, waste dumpsites, warehouses, and port facilities, tramways,
electric transportation thereto or therefrom, dams, and their normal
flood areas, ditches, canals, pipelines, flumes, cuts, shafts or tunnel to
drain or convey water, ore waste, or tailings therefrom, shafts or
tunnels for mining purposes, use or benefit, the hereby declared to be
for public purpose, use or benefit, the claim owner or lessee upon
payment of just compensation shall be entitled to the right to enter and
occupy the said mining claims or land.
Section 59. Eminent Domain. When the claim owner or an occupant or
owner of private lands refuses to grant to another claim owner or
lessee the right to build, construct or install any of the facilities
mentioned in the next preceding section, the claim owner or lessee
may prosecute an action for eminent domain under the Rules of Court
in the Court of First Instance of the province where the mining claims
involved are situated. In the determination of the just compensation
due the claim owner or owner or occupant of the land, the court shall
appoint at least one duly qualified mining engineer or geologist to be
recommended by the Director as one of the commissioners.
Chapter XII
MINES PERSONNEL, INSPECTION AND SAFETY
Section 60. Employment of Filipinos. Lessees under this Decree are
obligated to give preference to Philippine citizens in all types of mining
employment within the country, insofar as such citizens are qualified to
perform the corresponding work with reasonable efficiency and without
hazard to the safety of the operations; and are obligated likewise to
maintain effective programs of training and advancement
commensurate with the demonstrated abilities of such citizens to
perform satisfactorily the various types of operations involved. The
lessee, however, shall not be hindered from using employees of their
own selection, subject to the provisions of Commonwealth Act
Numbered Six Hundred Thirteen, as amended, for technical and
specialized work which, in their judgment and with the approval of the
Director, requires highly specialized training or long experience in
exploration, development or exploitation of the mining claim: Provided,
That in no case shall each employment exceed five (5) years:
Provided, further, That no foreigner shall be employed as mine
manager, vice-president for operations or equivalent managerial
position, in charge of mining, milling, quarrying or drilling operation
without passing the appropriate or pertinent government licensing
examination or unless in special cases permitted by the Director for a
period not exceeding one (1) year.
Section 61. Mine Labor. No person under sixteen (16) years of age
may employed in any phase of mining operations, and no person
under (18) years of age may be employed underground in a mine.
Section 62. Mine Supervision. All mining quarrying developing and
exploitation operations shall be directed and/or supervised by a person
or persons in accordance with the provisions of Section 25 of Republic
Act Numbered Forty-two Engineering Law of the Philippines."
Section 63. Mine Inspection. Only the Director or his duly authorized
representative, at reasonable hours of the day or night and in a
manner, which will not impede or obstruct work in progress, may
inquire into or inspect the activities of a lessee regarding safety
inspection of all installation, surface or underground, within the mining

claim or lease, mine safety, mineral conservation, problem of pollution

and compliance with the terms and conditions of the lease.
Section 64. Remedy for Dangerous Practices. If the Director or his
duly authorized representative finds any practice connected with
prospecting, mining or processing to be dangerous or defective or not
in accordance with the anti-pollution laws and regulations, he shall give
notice in writing thereof to the claim owner or to his agent in charge of
the operations and shall require the same to be remedied forthwith or
within such time as he may specify, and may in case of danger is
removed.
Section 65. Report of Accident. In case of any accident causing loss or
serious personal injuries, the person in charge of prospecting, mining,
quarrying or processing operations shall immediately report the same
to the Director by the fastest means of communications, and shall
promptly report in writing the facts of the accident to the mayor of the
municipality where the works are situated and to the nearest regional
office of the Bureau of Mines.
Chapter XIII
QUARRY RESOURCES
Section 66. Exploitation of Quarry Resources. Quarry resources may
be exploited only through permits on privately-owned lands through
licenses public lands.
Section 67. Preferential Right of Private Landowner. The owner of
private lands shall have the preferential right to exploit the quarry
resources found therein: Provided, That he shall not be required to
secure a permit to extract or remove quarry resources on his land for
his personal use.
Section 68. Applications for Quarry Rights. Applications for quarry
permits or licenses shall be filed with the Director or with the Mines
Regional Officer in the form and manner prescribed for the purpose
after paying the required filing fee as prescribed by the regulations.
The Director shall grant the permit or license after the applicant has
complied with all the requirements as prescribed by the regulations.
Section 69. Maximum Are of Quarry License. Notwithstanding the
provisions of Section 14 hereof, a quarry license shall cover any area
of not more than one hundred (100) hectares in any one province and
not more than one thousand (1000) hectares in the entire Philippines.
Section 70. Survey of Area Applied For. An applicant for a quarry
license shall cause the survey of the areas applied for within thirty (30)
days from the filing of the application. In the case of areas applied for
quarry permits, the survey thereof previously made and approved by
proper authorities may be considered as sufficient compliance with the
survey requirement provided herein. Failure on the part of an applicant
for a quarry license to have the areas surveyed within the said period
shall cause the rejection of the application.
Section 71. Rights of Permittee or Licensee. A holder of a valid quarry
permit or license shall have the right to extract, remove and dispose of
all the quarry resources found on or underneath the surface of the area
embraced in his permit or license, subject to existing laws, rules and
regulations promulgated thereunder, and the term and conditions of
said permit or license.
Section 72. Term of Permit or License. A quarry permit or license shall
be for a term of five (5) years counted from the date of its issuance.
Upon application filed before the expiry date thereof, and the permittee

or licensee having complied with the requirements, a permit or license

may be renewed for one or more terms but in no case to exceed
twenty-five (25) years. Pending the issuance of a quarry license, an
applicant therefor may be granted special permit to extract quarry
resources for test and experimental purposes at such quantity as the
Director may determine: Provide, That for commercial purposes
Section 33 shall apply.

Section 79. Fraudulent Conveyance of Mining Interest. Any person

who, with intent of gain, knowingly sells, transfers or conveys any false
mining claim or claims or any false right, title or interest in such mining
claims which were not actually located on the ground and do not exist
as such claims shall guilty of estafa and shall be punished, upon
conviction, in accordance with the provisions of the Revised Penal
Code.

Section 73. Quarry Fee and Royalty. A permittee or licensee shall pay
during the term of his permit or license a quarry fee fifty pesos
(P50.00) per hectare. The licensee or permittee shall also pay to the
Government a royalty of two per centum (2%) of the actual market
value of the gross output of the quarry resources extracted from the
area of his permit or license.

Section 80. Salting of Mineral Lands and Minerals. Any person, who
knowingly places or deposits, or becomes accessory to the placing or
depositing of, any mineral in any land for the purpose of "salting" or
misleading other persons as to the value of the mineral deposits in
such land, or who, knowingly co-mingles or causes to be co-mingled
samples of minerals with any other substances whatsoever which
increases the value or in any way changes the nature of said minerals
for the purpose of deceiving, cheating, or defrauding any person, shall
be punished, upon conviction, by imprisonment not exceeding a period
of five (52) years besides paying compensation for the damage which
have been caused thereby.

Section 74. Cancellation of Quarry Permit or License. A permit or

license for quarry resources may be cancelled by the Director for
violations of the provisions of this Decree and of all applicable
regulations: Provided, That before the cancellation of such license or
permit the holder thereof shall be given an opportunity to be heard in
an investigation to be conducted for the purpose.
Chapter XIV
PENAL PROVISIONS
Section 75. False Statements. Any person who, knowingly presents or
causes to be presented any false application, declaration, or evidence
to the Government or publishes, or causes to be published any
prospectus or other information containing any false statement relating
to mines, mining operations, mining claims or lease, shall be guilty or
perjury if such statement is made under oath, and shall be punished
upon conviction in accordance with the provisions of the Revised Penal
Code. If such false statement is not made under oath, he shall be
punished, upon conviction, by a fine not exceeding one thousand
pesos (P1,000.00).
Section 76. Intentional Overlapping. Any person who shall locate an
area as a mining claim and/or overlap any mining claim knowing fully
well that the area is already, covered by another locator's valid and
existing registered claim, shall be guilty of falsification of public
document punishable under the Revised Penal Code.
Section 77. Destruction of Claim Monuments, Marks, etc. Any person
who willfully and maliciously defaces, removes, or disturbs, any stake,
post, monument, boundary line or any other mark lawfully placed on
mining claims, or destroys, injuries or defaces any rules or notices
required to be posted under this Decree, shall be punished upon
conviction, by a fine not exceeding five hundred pesos (P500.00),
besides paying compensation for the expenses incurred in replacing
the defaced altered, removed, or disturbed, stakes, posts, monuments,
boundary lines, notices, or any other mark.
Section 78. Theft of Minerals. Any person who, without a mining lease
or a temporary permit to mine, shall extract, remove, and/or dispose of
minerals for commercial purposes belonging to the Government or
from a mining claim or claims leased, held, or owned by other persons,
without the written permission contemplated in Section 12, shall be
deemed to have stolen the ores or the products thereof from the mines
or mills. He shall, upon conviction, be imprisoned from six months to
six years or pay a fine from one hundred pesos to ten thousand pesos,
or both, in the discretion of the court, besides paying compensation for
the minerals extracted and disposed of, the royalty and the damage
caused thereby.

Section 81. Pollution from Mine Wastes and Mill Tailings. Any person
who willfully cause or permits sludge or tailings and other mine and mill
wastes to accumulate in, or flow from his mining claims so as to cause
danger, injury, or obstruction to any public road, rivers, or streams or
other public property shall be punished, upon conviction, by a fine not
exceeding five thousand pesos (P5,000.00) or imprisonment not
exceeding six (6) years, or both in the discretion of the court besides
paying compensation for the damage caused thereby.
Section 82. Interference with Mine Water Rights. Any person who
willfully takes water from a mine, mill, dam, reservior, or from any other
form of deposit, or prevents the water from entering said mine, mill,
dam, reservoir, or in any way interferes with the full enjoyment of water
rights previously granted and lawfully held by another person shall be
punished, upon conviction, by a fine exceeding five hundred pesos
(P500.00) or imprisonment not exceeding six (6) months or both, at the
discretion of the court.
Section 83. Destruction of Mining Claim Structures. Any person who
willfully destroys or damages structure in or on mining claims or on mill
sites shall be punished, upon conviction, by imprisonment not to
exceed five (5) years besides paying compensation for the damages
which may have been caused thereby.
Section 84. Mines Arson. Any person who willfully sets fire to any
mineral stockpile, mine, or workings, fittings, or a mine shall be guilty of
arson and shall be punished, upon conviction, in accordance with the
provisions of the Revised Penal Code, besides paying compensation
for the damage caused thereby.
Section 85. Willfull Damage to a Mine. Any person who willfully
damages a mine unlawfully causes water to run into a mine, or
obstructs any shaft or passage to a mine, or renders useless,
damages, or destroys any machines, appliance, apparatus, rope,
chain, tackle or any other thing which is used in a mine, shall be
punished, upon conviction, by imprisonment not exceeding a period of
five (5) years besides paying compensation for the damages caused
thereby.
Section 86. Illegal Obstruction to Government Officials. Any person
who willfully obstructs, harasses, and/or threatens the Director or any
of his subordinates or representatives, in the performance of their
duties pursuant to this Decree shall be punished, upon conviction, by a
fine not exceeding one thousand pesos (P1,000.00), or by

imprisonment of not more than one (1) year, or both, at the discretion
of the court.

work obligations, special, taxes or royalties shall apply only to mining

leases granted subsequent to the effectivity of any such increase.

Section 87. Illegal Obstruction to Lessee, or Permittee. Any person

who, without justifiable cause, prevents or obstructs the holder of a
mining claim, any lessee, licensee or permittee under this Decree from
undertaking prospecting, or development and exploitation operations in
any mining claim shall be punished by a fine of not more than one
thousand pesos (P1,000.00) or by imprisonment of not more than one
(1) year or both, at the discretion of the court.

Section 93. Fixed Causes of Cancellation. The causes of cancellation

provided in this Decree shall be considered as inherent in all mining
leases or other rights hereunder, and no new cause or modification of
such causes shall apply to any lease or right existing at the time such
new or modified causes are made effective.

Section 88. Delay in the Payment of Tax or Rental or Royalty. Where

the amount of tax, rental or royalty provided for by this Decree or by
the terms and conditions of the lease contract or permit or license
granted under this Decree is not paid on due date, there shall be
collected as part of the amount due, a surcharge of three per centum,
(3%) thereof per month from the due date until paid, such surcharges
to accrue to the Mines Special Fund.
Section 89. Offenses by Corporation. Whenever any of the offenses
mentioned in this chapter is committed by a corporation, partnership or
association, the President and each of the Director or managers of
said corporation, partnership or association or its agent or
representative in the Philippines in case of a foreign corporation or
association who shall have directed or induced the commission of the
said offense shall be criminally liable as principal thereof.
Chapter XV
GENERAL PROVISIONS
Section 90. Executive Officer. The Secretary, through the Director,
shall be the Executive Officer charged with carrying out of the
provisions of this Decree. Except as herein provided the Secretary,
upon recommendation of the Director, shall issue the rules, regulations
and orders necessary to carry out the provisions and purposes of this
Decree.
Section 91. Conservation Measures. All lessees under this Decree
shall take appropriate measures and undertake researches in
accordance with the most modern practices to maximize recovery and
wise utilization of minerals and stop or prevent wastes in mining and
milling operations. Rules and regulations may be issued which shall
require mine operators to utilize in their exploration, development,
exploitation and utilization, the latest and most improved methods and
devices to prevent wastes, or from causing pollution or otherwise
damaging streams, surface or underground water supply, and valuable
mineral deposits.
During the productive operation of any mine or leased minerals lands,
the operator or lessee shall take necessary measures to provide for
the growth and development of any industry suitable for the area, other
than mining in order that when the mine is exhausted or becomes no
longer profitable for mining purposes the people residing therein or
those who used to work for the mine will have a substitute industry or
business activity to provide their means of livelihood. Furthermore, the
mine or leased area shall be placed in a condition suitable for
habitation or agriculture, and free from danger of cave-ins, slides, and
other risks brought about by the mining operations.
Section 92. Fixed Taxes and Work Obligations. Work obligations,
special taxes and royalties which are fixed by the provisions of this
Decree are considered as inherent in all mining leases granted
hereunder, and shall remain at the rates and levels in force at the time
such leases were issued. Any increase in the amount or rate of such

Section 94. Mine Evaluation. The appraisal or reappraisal valuation or

re-evaluation of any mine, mining claim or claims with or without
improvements thereon, whether patented, leased or otherwise, for the
purpose of raising capital for the formation or organization of a
partnership or corporation or for determining the present net value of
the mines, shall be made by the Director or his duly authorized
representative. No mine, mining claim or claims with or without
improvements thereon, whether patented, leased or otherwise, shall be
accepted as or basis of any asset in any formation or organization of a
partnership or corporation without the value thereof having been first
appraised or determined by the Director as herein provided.
Section 95. Drilling and Exploration by the Bureau of Mines on
Registered Mining Claims. In accordance with the mineral policy of the
Government, the Bureau of Mines shall give priority to the exploration,
development and exploitation of critical and/or valuable commercial
minerals needed to meet urgent national demands and economic
development, and for this purpose, the Bureau of Mines may conduct
exploration and drilling work not only in public lands and government
reservations, but also within claims located and recorded by private
parties and using for such purpose its funds, personnel and equipment.
In the latter case, in the event that commercial deposits are proven by
such exploration and drilling work, such private parties shall reimburse
the Bureau of Mines of all the expenses it incurred in exploring and
drilling said mining claims, or part thereof, based on a schedule of
reimbursement approved by the Secretary upon recommendation of
the Director. The lease which may be granted covering the area so
explored and drilled shall contain stipulations as to the term of the
payment five (5) years from the date of the lease, and with surcharges
not exceeding twelve per centum (12%) per centum on the total
expenses incurred by the Bureau of Mines.
The declaration of location from to be used in locating and recording
mining claims, shall contain a proviso recognizing the authority of the
Director of his representative to enter the mining claims located and
recorded by private parties, and may conduct such exploration work
within the area when in his opinion it is to the best interest of the
country that the Bureau of Mines undertake such work.
Section 96. Minerals Not Included in Land Grants. Land grant to
provinces, districts or municipalities to aid in the construction of roads,
or for other public purposes, shall not include mineral therein.
Section 97. Assignment of Mining Rights. A mining lease contract or
any interest therein shall not be transferred, assigned, or subleased
without the prior approval of the Secretary: Provided, That such
transfer, assignment or sublease may be made only to a qualified
person possessing the resources and capability to continue the mining
operations of the lessee and that the assignor has complied with all the
obligations of the lease: Provided, further, That such transfer or
assignment shall be duly registered with the office of the mining
recorder concerned.
Section 98. Maps of Mine Workings Required. Lessees undertaking
underground operation shall prepare and maintain a map or maps of

convenient scale showing their workings which shall be updated and

made available to the Director or his representative upon demand.
Chapter XVI
TRANSITORY AND FINAL PROVISIONS
Section 99. Non-impairment of Vested or Acquired Substantive Rights.
Changes made and new provisions and rules laid down by this Decree
which may prejudice or impair vested or acquired rights in accordance
with order mining laws previously in force shall have no retroactive
effect. Provided, That the provisions of this Decree which are
procedural in nature shall prevail.
Section 100. Old Valid Mining Rights May Come Under This Decree.
Holders of valid and subsisting mining locations and other rights under
other laws, irrespective of the areas covered, may avail of the rights
and privileges granted under this Decree by making the necessary
application therefor and approval thereof by the Director within a period
of two (2) years from the date of approval of this Decree.
Section 101. Recognition and Survey of Old Subsisting Mining Claims.
All mining grants patents, locations, leases and permits subsisting at
the time of the approval of this Decree shall be recognized if registered
pursuant to Section 100 hereof: Provided, That Spanish Royal Grants
and unpatented mining claims located and registered under the Act of
the United States Congress of July 1, 1902, as amended, otherwise
known as the "Philippine Bill", as shall be surveyed within one (1) year
from the approval of this Decree: Provided, further, That no such
mining rights shall be recognized if there is failure to comply with the
fundamental requirements of the respective grants: And provided,
finally, That such grants, patents, locations, leases or permits as may
be recognized by the Director after proper investigation shall comply
with the applicable provisions of this Decree, more particularly with the
annual work obligations, submittal of reports, fiscal provisions and
other obligations.
Section 102. Conditional Mining Acts and Contracts. Acts and
contracts made or executed with a condition or period under previous
mining laws, if valid in accordance therewith, shall continue as such,
but the revocation or modification of these acts and contracts after the
effectivity of this Decree shall be subject to the provisions hereof.
Section 103. Right of Applicant to Areas Abandoned. The lessee under
this Decree has the preferential right to apply for the inclusion of any
and all areas within the perimeter of his claim which are covered by
abandoned or expired right granted under other mining laws.
Section 104. Separability Clause. If any section or provision of this
Decree is held or declared unconstitutional or invalid by a competent
court, the other sections or provisions hereof shall continue to be in
force as if the sections or provisions so annulled or voided had never
been incorporated in this Decree.
Section 105. Repealing Clause. All laws, decrees, rules and
regulations, or part thereof in conflict or inconsistent with any of the
provisions of this Decree are hereby repealed or modified accordingly.
Section 106. Effectivity Date. This Decree shall take effect
immediately.
Done in the City of Manila, this 17th day of May, in the year of Our
Lord, nineteen hundred and seventy-four.

Republic Act No. 166

June 20, 1947

AN ACT TO PROVIDE FOR THE REGISTRATION AND

PROTECTION OF TRADE-MARKS, TRADE-NAMES AND SERVICEMARKS, DEFINING UNFAIR COMPETITION AND FALSE MARKING
AND PROVIDING REMEDIES AGAINST THE SAME, AND FOR
OTHER PURPOSES
CHAPTER I - Powers, Duties and Functions of Patent Office
Section 1. Transfer of powers from Bureau of Commerce to
Patent Office. - The powers, duties and functions vested in, or
performed and exercised by, the Bureau of Commerce in connection
with the registration of trade-marks, trade-names and other marks are
hereby transferred to the Patent Office. The administration of this Act
shall devolve upon the Patent Office.
All books, records, documents and files of the Bureau of Commerce
relating to trade-marks, trade-names and other marks, and such
personnel of the said Bureau as is now discharging the functions or
performing the duties of the Bureau of Commerce in connection with
the registration of trade-marks, trade-names and other marks together
with the corresponding appropriation, are transferred to the Patent
Office, and the Budget Commissioner shall make immediate provision
for such transfer.
CHAPTER II - Registration of Marks and Trade-Names
Section 2. What are registrable. - Trade-marks, trade-names and
service-marks may be registered in accordance with the provisions of
this Act.
Section 3. Application by non-residents. - Any person filing an
application for the registration of a mark or trade-name, who is not a
resident of the Philippines, must appoint an agent or representative in
the Philippines upon whom notice or process relating to the application
or registration of the mark or trade-name may be served. In the event
of death, absence or inability of the agent or representative, a new
agent or representative must be appointed, and notice thereof must be
filed in the Patent Office. Upon failure to maintain an agent or
representative of record in the Patent Office, service on the Director
shall be deemed sufficient.
Section 4. Registration of trade-marks, trade-names and servicemarks. - The owner of a trade-mark, trade-name or service-mark used
to distinguish his goods, business or services from the goods, business
or services of others shall have the right to register the same, unless it:
(a) Consists of or comprises 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 or comprises 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 or comprises 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 the written consent of the widow;

(d) Consists of or comprises a mark or trade-name which so

resembles a mark or trade-name registered in the
Philippines or a mark or trade-name previously used in the
Philippines by another and not abandoned, as to be likely,
when applied to or used in connection with the goods,
business or services of the applicant, to cause confusion or
mistake or to deceive purchases; or
(e) Consists of a mark or trade-name which, when applied to
or used in connection with the goods, business or services of
the applicant is merely descriptive or deceptively
misdescriptive of them, or when applied to or used in
connection with the goods, business or services of the
applicant is primarily geographically descriptive or
deceptively misdescriptive of them, or is primarily merely a
surname.
(f) Except as expressly excluded in paragraphs (a), (b), (c)
and (d) of this section, nothing herein shall prevent the
registration of a mark or trade-name used by the applicant
which has become distinctive of the applicant's goods,
business or services. The Director may accept as prima facie
evidence that the mark or trade-name has become
distinctive, as applied to or used in connection with the
applicant's goods, business or services, proof of
substantially exclusive and continuous use thereof as a mark
or trade-name by the applicant in connection with the sale of
goods, business or services for the five years next preceding
the date of the filing of the application for its registration.
Section 5. Requirements of the application. - The application for the
registration of a mark or trade-name shall be in English or Spanish, or
in the national language, with its corresponding English translation,
and signed by the applicant, and shall include:
(a) Sworn statement of the applicant's domicile and
citizenship, the date of the applicant's first use of the mark or
trade-name, the date of the applicant's first use of the mark
or trade-name in commerce or business, the goods,
business or services in connection with which the mark or
trade-name is used and the mode or manner in which the
mark is used in connection with such goods, business or
services, and that the person making the application
believes himself, or the firm, corporation or association on
whose behalf he makes the verification, to be the owner of
the mark or trade-name sought to be registered, that the
mark or trade-name is in use in commerce or business, and
that to the best of his knowledge no person, firm, corporation
or association has the right to use such mark or trade-name
in commerce or business either in the identical form thereof
or in such near resemblance thereto as might be calculated
to deceive;
(b) Such number of specimens or facsimiles of the mark or
trade-name as actually used as may be required by the
Director;
(c) Power of attorney, if the filing is through attorney;
(d) The appointment of an agent or representative, if the
applicant is not domiciled in the Philippines; and
(e) The required fee.

Section 6. Classification of goods and services. - The Director shall

establish a classification of goods and services, for the convenience of
the Patent Office administration, but not to limit or extent the
applicant's rights. The applicant may register his mark or trade-name in
one application for any of all the goods or services included in one
class, upon or in connection with which he is actually using the mark or
trade-name. The Director may issue a single certificate for one mark or
trade-name registered in a plurality of classes upon payment of a fee
equaling the sum of the fees for each registration in each class.
Section 7. Examination and publication. - Upon the filing of an
application for registration and the payment of the required fee, the
Director shall cause an examination of the application to be made, and,
if on such examination it shall appear that the applicant is entitled to
registration, the Director, upon payment of the required fee, shall cause
the mark or trade-name to be published in the Official Gazette.
If the applicant is found not entitled to registration, the Director shall
advise the applicant thereof and of the reasons therefor. The applicant
shall have a period of three months in which to reply or amend his
application, which shall then be re-examined. This procedure may be
repeated until the Director finally refuses registration or the applicant
fails within the required period to reply or amend or appeal, whereupon
the application shall be deemed to have been abandoned, unless it
can be shown to the satisfaction of the Director that the delay in
responding was unavoidable, in which event such time may be
extended in the discretion of the Director. An abandoned application
may be revived as a pending application within three months from the
date of abandonment, upon good cause shown and the payment of the
required fee.
Section 8. Opposition. - Any person who believes that he would be
damaged by the registration of a mark or trade-name may, upon
payment of the required fee and within thirty days after the publication
under the first paragraph of section seven hereof, file with the Director
as 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 or trade-names registered in other countries or other
supporting documents mentioned in the opposition shall be filed
therewith, together with the translation thereof into 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
for an additional thirty days by the Director, who shall notify the
applicant of such extension.
Section 9. Notice and hearing. - Upon the filing of an opposition, the
Director shall forthwith 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 or
trade-name covered by the application, as appear of record in the
Patent Office.
Section 10. Issuance and publication of certificates. - When the
period for filing the opposition has expired, or when the Director shall
have denied the opposition, the Director, 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 Official Gazette.
Section 11. Issuance and contents of the certificate. - Certificates
of registration shall be issued in the name of the Republic of the
Philippines under the seal of the Patent Office, and shall be signed by
the Director, and a record thereof together with a copy of the specimen

or facsimile and the statement of the applicant, shall be kept in books

for that purpose. The certificate shall reproduce the specimen or
facsimile of the mark or trade-name, contain the statement of the
applicant and state that the mark or trade-name is registered under this
Act, the date of the first use, the date of the first use in commerce or
business, the particular goods or services for which it is registered, the
number and date of the registration, the term thereof, the date on
which the application for registration was received in the Patent Office,
a statement of the requirement that in order to maintain the
registration, periodical affidavits of use within the specified times
hereinafter in section twelve provided, shall be filed, and such other
data as the rules and regulations may from time to time prescribe.
Section 12. Duration. - Each certificate of registration shall remain in
force for twenty years: Provided, That registrations under the
provisions of this Act shall be cancelled by the Director, unless within
one year following the fifth, tenth and fifteenth anniversaries of the date
of issue of the certificate of registration, the registrant shall file in the
Patent Office an affidavit showing that the mark or trade-name is still in
use or showing that its non-use is due to special circumstances which
excuse such non-use and is not due to any intention to abandon the
same, and pay the required fee.
The Director shall notify the registrant who files the above-prescribed
affidavits of his acceptance or refusal thereof and, if a refusal, the
reasons therefor.
Section 13. Disclaimers before issue. - The Director shall require
unregistrable matter to be disclaimed, 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 shall such disclaimer
prejudice or affect the applicant's or owner's rights of registration on
another application of later date if the disclaimed matter has become
distinctive of the applicant's or owner's goods, business or services.
Section 14. Voluntary surrender, cancellation, amendment and
disclaimer after registration. - At any time, upon application of the
registrant and payment of the required fee, the Director may permit any
registration to be surrendered, cancelled, or for good cause shown to
be amended, he may permit any registered mark or trade-name to be
disclaimed in whole or in part: Provided, That the registration when so
amended shall still contain registrable matter and the mark or tradename as amended shall still be registrable as a whole, and that such
amendment or disclaimer does not involve such changes in the
registration as to alter materially the character of the mark or tradename. The Director shall make appropriate entry upon the records of
the Patent Office and upon the certificate of registration or, if said
certificate is lost or destroyed, upon a certified copy thereof. The
Director in his discretion and upon payment of the required fee, may
issue a substitute certificate limited to the term of the original certificate
and incorporating such amendment or correction.
CHAPTER III - Renewals of Certificate of Registration
Section 15. Renewal. - Each certificate of registration may be
renewed for periods of twenty years from the end of the expiring period
upon the filing of an application therefor and the payment of the
required fee. Such application for renewal shall include a sworn
statement of the applicant's domicile and citizenship, the specific
goods, business or services in connection with which the mark or
trade-name is still in use, the period of any nonuse in reference to the
specific goods, business or services covered by original or renewed
certificates of registration and any rights granted third parties for the
use of the mark or trade-name, any additional goods, business or
services to which the mark or trade-name has been extended during

the period of the original or renewed certificates of registration, and

any material variation in the manner of display of the mark or tradename from that shown in the original or renewed certificate of
registration. The applicant shall file the application within six months
before the expiration of the period for which the certificate of
registration was issued or renewed, or it may be made within three
months after such expiration for good cause shown and upon payment
of the required surcharge.
In the event the applicant for renewal be not domiciled in the
Philippines, he shall be subject to and comply with the provisions of
paragraph (d), section five, Chapter II hereof.
Section 16. Effect of failure to renew registration. - Mere failure to
renew any registration shall not affect the right of the registrant to apply
for and obtain a new registration under the provisions of this Act, nor
shall such failure entitle any other person to register a mark or tradename unless he is entitled thereto in accordance with the provisions of
this Act.
CHAPTER IV - Cancellation of Registration
Section 17. Grounds for cancellation. - Any person, who believes
that he is or will be damaged by the registration of a mark or tradename, may, upon the payment of the prescribed fee, apply to cancel
said registration upon any of the following grounds:
(a) That the registered mark or trade-name becomes the
common descriptive name of an article or substance on
which the patent has expired;
(b) That it has been abandoned;
(c) That the registration was obtained fraudulently or
contrary to the provisions of section four, Chapter II hereof;
(d) That the registered mark or trade-name has been
assigned, and is being used by, or with the permission of,
the assignee so as to misrepresent the source of the goods,
business or services in connection with which the mark or
trade-name is used; or
(e) That cancellation is authorized by other provisions of this
Act.
Section 18. Requirements of petition; notice and hearing. - Insofar
as applicable, the petition herein shall be in the same form as that
provided in section eight, Chapter II hereof, and notice and hearing
shall be as provided in section nine, Chapter II hereof.
Section 19. Cancellation of registration. - If the Director finds that a
case for cancellation has been made out he shall order the
cancellation of the registration. The order shall not become effective
until the period for appeal has elapsed, or if appeal is taken, until the
judgment on appeal becomes final. 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 Official Gazette.
CHAPTER V - Rights and Remedies
Section 20. Certificate of registration prima facie evidence of
validity. - A certificate of registration of a mark or trade-name shall be

prima facie evidence of the validity of the registration, the registrant's

ownership of the mark or trade-name, and of the registrant's exclusive
right to use the same in connection with the goods, business or
services specified in the certificate, subject to any conditions and
limitations stated therein.
Section 21. Requirements of notice of registration of trade-mark. The registrant of a trade-mark, heretofore registered or registered
under the provisions of this Act, shall give notice that his mark is
registered by displaying with the same as used the words "Registered
in the Philippines Patent Office" or "Reg. Phil. Pat. Off."; and in any suit
for infringement under this Act by a registrant failing so to mark the
goods bearing the registered trade-mark, no damages shall be
recovered under the provisions of this Act unless the defendant has
actual notice of the registration.
Section 22. Infringement, what constitutes. - Any person who shall
use, without the consent of the registrant, any reproduction,
counterfeit, copy or colorable imitation of any registered mark or tradename in connection with the sale, offering for sale, or advertising of
any goods, business or services on or in connection with which such
use is likely to cause confusion or mistake or to deceive purchasers or
others as to the source or origin of such goods or services, or identity
of such business; or reproduce, counterfeit, copy or colorably imitate
any such mark or trade-name and apply such reproduction, counterfeit,
copy, or colorable imitation to labels, signs, prints, packages,
wrappers, receptacles or advertisements intended to be used upon or
in connection with such goods, business or services, shall be liable to
a civil action by the registrant for any or all of the remedies herein
provided.
Section 23. Actions, and damages and injunction for
infringement. - Any person entitled to the exclusive use of a registered
mark or trade-name may recover damages in a civil action 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 said 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 of 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. In cases where actual intent to mislead
the public or to defraud the complaining party shall be shown, in the
discretion of the court, the damages may be doubled.
The complaining party, upon proper showing, may also be granted
injunction.
Section 24. Power of court to order infringing material
destroyed. - In any action arising under this Act, in which a violation of
any right of the registrant shall have been established, the court may
order that all labels, sign, 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, and all plates, molds, matrices and other
means of making the same, shall be delivered up and destroyed.
Section 25. Authority to determine right to registration. - In any
action involving a registered mark or trade-name the court may
determine the right to registration, order the cancellation of
registrations, in whole or in part, restore cancelled registration, and
otherwise rectify the register with respect to the registration of any
party to the action. Judgments and orders shall be certified by the court

to the Director, who shall make appropriate entry upon the records of
the Patent Office, and shall be controlled thereby.
Section 26. Action for false or fraudulent declaration. - Any person
who shall procure registration in the Patent Office of a mark or tradename by a false or fraudulent declaration or representation, 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.
Section 27. Jurisdiction of Court of First Instance. - All actions
under this Chapter and Chapters VI and VII hereof shall be brought
before the proper Court of First Instance.
Section 28. Appeal. - Appeal may be taken from any judgment or final
order of the Court of First Instance in the same manner as in other
actions.
CHAPTER VI - Unfair Competition
Section 29. Unfair competition, rights and remedies. - 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 mark or trade-name 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. Such a
person shall have the remedies provided in section twenty-three,
Chapter V hereof.
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.
In particular, and without in any way limiting the scope of unfair
competition, the following shall be deemed guilty of unfair competition:
(a) Any person, who in selling his goods shall give 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;
(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.
CHAPTER VII - False Designation of Origin and False Description

Section 30. False designation of origin and false description

forbidden. - Any person who shall affix, apply, annex or use in
connection with any goods or services, or any container or containers
for goods, a false designation of origin, or any false description or
representation, including words or other symbols tending falsely to
describe or represent the same, and shall cause such goods or
services to enter into commerce, and any person who shall with
knowledge of the falsity of such designation of origin or description or
representation cause or procure the same to enter into commerce,
shall be liable to a civil action for damages and injunction provided in
section twenty-three, Chapter V hereof, by any person doing business
in the locality falsely indicated as that of origin or in the region in which
said locality is situated, or by any person who believes that he is or is
likely to be damaged by the use of any such false description or
representation.
CHAPTER VIII - Assignment and Transmission of Rights
Section 31. Rights assignable and form of assignment. - A
registered mark or trade-name, or one for which application to register
has been filed shall be assignable with the goodwill of the business in
which the mark or trade-name is used, or with that part of the goodwill
of the business connected with the use of and symbolized by the mark
or trade-name, and in any such assignment it shall not be necessary to
include the goodwill of the business connected with the use of and
symbolized by any other mark or trade-name used in the business or
by the name or style under which the business is conducted. Upon
payment of the required fee, the Director shall record assignments in
due form in books kept for that purpose.
The assignment must be in writing, acknowledged before a notary
public or other officer authorized to administer oaths or perform other
notarial acts and certified under the hand and official seal of the notary
or other officer.
An assignment shall be void as against any subsequent purchaser for
a valuable consideration without notice, unless it is recorded in the
Patent Office within three months after the date thereof or prior to such
subsequent purchase.
Section 32. Issuance of certificate of registration to assignee. - A
certificate of registration of a mark or trade-name may be issued to the
assignee of the applicant, but the assignment must first be recorded in
the Patent Office. In case of change of ownership the Director shall, at
the request of the owner and upon proper showing and payment of the
required fee, issue to such assignee a new certificate of registration of
the said mark or trade-name in the name of such assignee, and for the
unexpired part of the original period.
CHAPTER IX - Review of Orders or Decisions of Director
Section 33. Appeal from action of Director. - Any party who has
been denied registration of a mark or trade-name, or to the renewal of
the registration, or to any cancellation proceeding in the Patent Office,
may appeal to the Supreme Court from the final order or decision of
the Director.
Section 34. Procedure on appeal. - Sections sixty-three to seventythree, inclusive, Chapter VIII, of Republic Act No. _____ entitled "An
Act creating a Patent Office, prescribing its powers and duties,
regulating the issuance of patents, and appropriating funds therefor,"
shall be applicable to the appeals herein provided.
CHAPTER X - Importations Prohibited

Section 35. 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 of any
manufacturer or dealer located in any foreign country which, by treaty,
convention or law affords similar privileges to citizens of the
Philippines, or which shall copy or simulate a mark or trade-name
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 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 of his registered mark or trade-name, and
thereupon the Collector of Customs shall cause one or more copies of
the same to be transmitted to each collector or other proper officer of
the Bureau of Customs.
Section 36. Goods with false designation of origin and false
description. - Any goods marked or labeled in contravention of the
provisions of section thirty, Chapter VII hereof, shall not be imported
into the Philippines or admitted to entry at any customhouse in the
Philippines.
CHAPTER XI - Provisions in Reference to Foreign Industrial
Property

(a) The application in the Philippines is filed within six

months from the date on which the applicant was first filed in
the foreign country; and within three months from the date of
filing or within such time as the Director shall in his discretion
grant, the applicant shall furnish a certified copy of the
application for or registration in the country of origin of the
applicant, together with a translation thereof into English, if
not in the English language;
(b) The application conforms as nearly as practicable to the
requirements of this Act, but use in commerce need not be
alleged;
(c) The rights acquired by third parties before the date of the
filing of the first application in the foreign country shall in no
way be affected by a registration obtained on an application
filed under this paragraph; and
(d) Nothing in this paragraph shall entitle the owner of a
registration granted under this section to sue for acts
committed prior to the date on which his mark or trade-name
was registered in this country unless the registration is
based on use in commerce.
The registration of a mark under the provisions of this section shall be
independent of the registration in the country of origin and the duration,
validity or transfer in the Philippines of such registration shall be
governed by the provisions of this Act.
Trade-names of persons described in the first paragraph of this section
shall be protected without the obligation of filing or registration whether
or not they form parts of marks.

Section 37. Rights of foreign registrants. - Persons who are

nationals of, domiciled in, or have a bona fide or effective business or
commercial establishment in any foreign country, which is a party to
any international convention or treaty relating to marks or trade-names,
or the repression of unfair competition to which the Philippines may be
a party, shall be entitled to the benefits and subject to the provisions of
this Act to the extent and under the conditions essential to give effect
to any such convention and treaties so long as the Philippines shall
continue to be a party thereto, except as provided in the following
paragraphs of this section.

Any person designated in the first paragraph of this section as entitled

to the benefits and subject to the provisions of this Act shall be entitled
to effective protection against unfair competition, and the remedies
provided herein for infringement of marks and trade-names shall be
available so far as they may be appropriate in repressing acts of unfair
competition.

No registration of a mark or trade-name in the Philippines by a person

described in the preceding paragraph of this section shall be granted
until such mark or trade-name has been registered in the country of
origin of the applicant, unless the applicant alleges use in commerce.

CHAPTER XII - Construction and Definitions

For the purposes of this section, the country of origin of the applicant is
the country in which he has bona fide and effective industrial or
commercial establishment, or if he has not such an establishment in
the country in which he is domiciled, or if he has not a domicile in any
of the countries described in the first paragraph of this section, the
country of which he is a national.
An application for registration of a mark or trade-name under the
provisions of this Act filed by a person described in the first paragraph
of this section who has previously duly filed an application for
registration of the same mark or trade-name in one of the countries
described in said paragraph shall be accorded the same force and
effect as would be accorded to the same application if filed in the
Philippines on the same date on which the application was first filed in
such foreign country: Provided, That -

Citizens or residents of the Philippines shall have the same benefits as

are granted by this section to persons described in the first paragraph
hereof.

Section 38. Words and terms defined and construed. - In the

construction of this Act, unless the contrary is plainly apparent from the
context The term "trade-name" includes individual names and surnames, firm
names, trade-names, devices or words used by manufacturers,
industrialists, merchants, agriculturists, and others to identify their
business, vocations or occupations; the names or titles lawfully
adopted and used by natural or juridical persons, unions, and any
manufacturing, industrial, commercial, agricultural or other
organizations engaged in trade or commerce.
The term "trade-mark" includes any word, name, symbol, emblem, sign
or device or any combination thereof adopted and used by a
manufacturer or merchant to identify his goods and distinguish them
from those manufactured, sold or dealt in by others.

The term "service-mark" means a mark used in the sale or advertising

of services to identify the services of one person and distinguish them
from the services of others and includes without limitation the marks,
names, symbols, titles, designations, slogans, character names, and
distinctive features of radio or other advertising.

For issuance of an affirmative or negative certificate

regarding the registration of any document in connection,
with a mark or trade-name, ten pesos;
For filing any other documents in connection with marks or
trade-names not required by law to be filed, ten pesos;

The word "business" includes vocations or occupations.

For certifying a copy to be a true and exact copy, one peso;
The term "mark" includes any trade-mark or service-mark entitled to
registration under this Act whether registered or not.
The word "registrant" includes the owner of a registered mark or tradename.

For copies of records, two pesos per photostat sheet; one

peso per one hundred words of typewritten copy; and
For services not otherwise specified, the Director shall, by
regulation, provide the fees therefor.

Section 39. Fees. - The following fees shall be paid:

For filing application for registration for each class included
in the application, fifty pesos;
For filing application for revival of abandoned application for
registration, twenty-five pesos;
For publication in the Official Gazette of allowance of
application, fifty pesos;
For filing of opposition, fifty pesos;
For issuance and publication of certificate of registration,
twenty-five pesos;
For filing each affidavit required by section twelve, Chapter II
hereof, twenty-five pesos;

Section 40. Collective marks and collective trade-names. Collective marks and collective trade-names belonging to
cooperatives, associations or other collective groups or organization
may also be registered under the provisions of this Act, even though
the said collectivities may not possess an industrial, commercial or
agricultural establishment. Foreign collectivities may not, however,
procure such registration if the existence of such collectivities is
contrary to the laws of the country of origin.
Such collective marks and collective trade-names, when registered,
shall be entitled to the protection provided herein in the case of marks
and trade-names, except when used so as to represent falsely that the
owner or a user makes or sells the goods on which the mark or tradename is used, or so as to represent falsely the origin of the goods or
services.

For filing disclaimer, amendment, surrender or cancellation

after registration, twenty pesos;

The other provisions of this Act relating to marks and trade-names

shall apply to collective marks and collective trade-names, except that
the part of paragraph (e), section four, Chapter II hereof, relating to
geographically descriptive marks or trade-names shall not be
applicable in appropriate cases.

For issuance of a substitute certificate of registration

following correction of a registrant's mistake, twenty-five
pesos;

A "collective mark" or collective trade-name" is a mark or trade-name

used by the members of a cooperative, an association or other
collective group or organization.

For issuance of a new certificate of registration following

change of ownership of mark, twenty-five pesos;
For filing petition for renewal of certificate of registration for
each class, fifty pesos;
For filing petition for cancellation, fifty pesos;
For surcharge for any delayed payment or any delayed
action of an applicant or registrant, twenty-five pesos;
For notice of appeal from orders or decisions of
Commissioner, twenty-five pesos;
For recording assignments for each mark or trade-name, ten
pesos;
For issuance of a certificate regarding the registration or
non-registration of each mark or trade-name, ten pesos;

CHAPTER XIV - Miscellaneous Provisions

Section 41. Reservation in favor of prior registration. - Owners of
marks or trade-names registered under the provisions of the laws in
force prior hereto, the registrations of which are still subsisting under
the said laws are hereby granted the right:
(a) Within one year after the taking effect of this Act to
surrender their certificates of registration and procure the
issuance of new certificates, in which event they shall be
entitled to the benefits and subject to the provisions of this
Act; or
(b) Within one year before the expiration of the period for
which the certificates of registration was issued or renewed,
the registrant may renew the registration upon filing an
application therefor, as provided in section fifteen, Chapter III
hereof. If said application is granted a renewal certificate
shall be issued by the Director in accordance with the
provisions of this Act.

Section 42. Renewal of registrations which expired during the

war. - The provisions of this Act to the contrary notwithstanding,
registrations under prior laws which expired after the eighth day of
December, nineteen hundred forty-one, and which the owners were not
able to renew for causes arising out of the war, may be renewed within
one year after this Act takes effect, and non-use of the mark or tradename may be shown to be due to special circumstances. If the
application for renewal is granted, a renewal certificate to commence
from the date of the expiration of the prior registration shall be issued
by the Director in accordance with the provisions of this Act.

Section 44. Repealing clause. - Act Numbered Six hundred and sixtysix of the Philippine Commission, approved March six, nineteen
hundred and three, and all laws amendatory thereto; Act Numbered
Thirty hundred and seventy of the Philippine Legislature, approved
March sixteen, nineteen hundred and twenty-three; Act Numbered
Thirty-two hundred and two, approved December three, nineteen
hundred and twenty-four, and all other acts, or parts of acts
inconsistent herewith, are hereby repealed.

Section 43. Pending applications. - All applications for registration

pending on the effective date of this Act may be amended, if
practicable, to bring them under the provisions of this Act, without the
payment of any additional fee. The prosecution of such applications
whether amended or not and the grant of registrations thereon shall
conform to the provisions of this Act.

Approved: June 20, 1947

Section 45. Effective date. - This Act shall take effect on its approval.