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[REPUBLIC ACT NO.

10173]
AN ACT PROTECTING INDIVIDUAL PERSONAL INFORMATION IN INFORMATION
AND COMMUNICATIONS SYSTEMS IN THE GOVERNMENT AND THE PRIVATE
SECTOR, CREATING FOR THIS PURPOSE A NATIONAL PRIVACY COMMISSION, AND
FOR OTHER PURPOSES
Be it enacted, by the Senate and House of Representatives of the Philippines in Congress
assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. This Act shall be known as the Data Privacy Act of 2012.
SEC. 2. Declaration of Policy. It is the policy of the State to protect the fundamental human
right of privacy, of communication while ensuring free flow of information to promote
innovation and growth. The State recognizes the vital role of information and communications
technology in nation-building and its inherent obligation to ensure that personal information in
information and communications systems in the government and in the private sector are
secured and protected.
SEC. 3. Definition of Terms. Whenever used in this Act, the following terms shall have the
respective meanings hereafter set forth:
(a) Commission shall refer to the National Privacy Commission created by virtue of this Act.
(b) Consent of the data subject refers to any freely given, specific, informed indication of will,
whereby the data subject agrees to the collection and processing of personal information about
and/or relating to him or her. Consent shall be evidenced by written, electronic or recorded
means. It may also be given on behalf of the data subject by an agent specifically authorized by
the data subject to do so.
(c) Data subject refers to an individual whose personal information is processed.
(d) Direct marketing refers to communication by whatever means of any advertising or
marketing material which is directed to particular individuals.
(e) Filing system refers to any act of information relating to natural or juridical persons to the
extent that, although the information is not processed by equipment operating automatically in
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response to instructions given for that purpose, the set is structured, either by reference to
individuals or by reference to criteria relating to individuals, in such a way that specific
information relating to a particular person is readily accessible.
(f) Information and Communications System refers to a system for generating, sending,
receiving, storing or otherwise processing electronic data messages or electronic documents and
includes the computer system or other similar device by or which data is recorded, transmitted
or stored and any procedure related to the recording, transmission or storage of electronic data,
electronic message, or electronic document.
(g) Personal information refers to any information whether recorded in a material form or not,
from which the identity of an individual is apparent or can be reasonably and directly
ascertained by the entity holding the information, or when put together with other information
would directly and certainly identify an individual.
(h) Personal information controller refers to a person or organization who controls the
collection, holding, processing or use of personal information, including a person or
organization who instructs another person or organization to collect, hold, process, use, transfer
or disclose personal information on his or her behalf. The term excludes:
(1) A person or organization who performs such functions as instructed by another person or
organization; and
(2) An individual who collects, holds, processes or uses personal information in connection with
the individuals personal, family or household affairs.
(i) Personal information processor refers to any natural or juridical person qualified to act as
such under this Act to whom a personal information controller may outsource the processing of
personal data pertaining to a data subject.
(j) Processing refers to any operation or any set of operations performed upon personal
information including, but not limited to, the collection, recording, organization, storage,
updating or modification, retrieval, consultation, use, consolidation, blocking, erasure or
destruction of data.
(k) Privileged information refers to any and all forms of data which under the Rules of Court
and other pertinent laws constitute privileged communication.
(l) Sensitive personal information refers to personal information:
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(1) About an individuals race, ethnic origin, marital status, age, color, and religious,
philosophical or political affiliations;
(2) About an individuals health, education, genetic or sexual life of a person, or to any
proceeding for any offense committed or alleged to have been committed by such person, the
disposal of such proceedings, or the sentence of any court in such proceedings;
(3) Issued by government agencies peculiar to an individual which includes, but not limited to,
social security numbers, previous or cm-rent health records, licenses or its denials, suspension or
revocation, and tax returns; and
(4) Specifically established by an executive order or an act of Congress to be kept classified.
SEC. 4. Scope. This Act applies to the processing of all types of personal information and to
any natural and juridical person involved in personal information processing including those
personal information controllers and processors who, although not found or established in the
Philippines, use equipment that are located in the Philippines, or those who maintain an office,
branch or agency in the Philippines subject to the immediately succeeding
paragraph: Provided, That the requirements of Section 5 are complied with.
This Act does not apply to the following:
(a) Information about any individual who is or was an officer or employee of a government
institution that relates to the position or functions of the individual, including:
(1) The fact that the individual is or was an officer or employee of the government institution;
(2) The title, business address and office telephone number of the individual;
(3) The classification, salary range and responsibilities of the position held by the individual;
and
(4) The name of the individual on a document prepared by the individual in the course of
employment with the government;
(b) Information about an individual who is or was performing service under contract for a
government institution that relates to the services performed, including the terms of the contract,
and the name of the individual given in the course of the performance of those services;

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(c) Information relating to any discretionary benefit of a financial nature such as the granting of
a license or permit given by the government to an individual, including the name of the
individual and the exact nature of the benefit;
(d) Personal information processed for journalistic, artistic, literary or research purposes;
(e) Information necessary in order to carry out the functions of public authority which includes
the processing of personal data for the performance by the independent, central monetary
authority and law enforcement and regulatory agencies of their constitutionally and statutorily
mandated functions. Nothing in this Act shall be construed as to have amended or repealed
Republic Act No. 1405, otherwise known as the Secrecy of Bank Deposits Act; Republic Act
No. 6426, otherwise known as the Foreign Currency Deposit Act; and Republic Act No. 9510,
otherwise known as the Credit Information System Act (CISA);
(f) Information necessary for banks and other financial institutions under the jurisdiction of the
independent, central monetary authority or Bangko Sentral ng Pilipinas to comply with Republic
Act No. 9510, and Republic Act No. 9160, as amended, otherwise known as the Anti-Money
Laundering Act and other applicable laws; and
(g) Personal information originally collected from residents of foreign jurisdictions in
accordance with the laws of those foreign jurisdictions, including any applicable data privacy
laws, which is being processed in the Philippines.
SEC. 5. Protection Afforded to Journalists and Their Sources. Nothing in this Act shall be
construed as to have amended or repealed the provisions of Republic Act No. 53, which affords
the publishers, editors or duly accredited reporters of any newspaper, magazine or periodical of
general circulation protection from being compelled to reveal the source of any news report or
information appearing in said publication which was related in any confidence to such publisher,
editor, or reporter.
SEC. 6. Extraterritorial Application. This Act applies to an act done or practice engaged in and
outside of the Philippines by an entity if:
(a) The act, practice or processing relates to personal information about a Philippine citizen or a
resident;

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(b) The entity has a link with the Philippines, and the entity is processing personal information
in the Philippines or even if the processing is outside the Philippines as long as it is about
Philippine citizens or residents such as, but not limited to, the following:
(1) A contract is entered in the Philippines;
(2) A juridical entity unincorporated in the Philippines but has central management and control
in the country; and
(3) An entity that has a branch, agency, office or subsidiary in the Philippines and the parent or
affiliate of the Philippine entity has access to personal information; and
(c) The entity has other links in the Philippines such as, but not limited to:
(1) The entity carries on business in the Philippines; and
(2) The personal information was collected or held by an entity in the Philippines.
CHAPTER II
THE NATIONAL PRIVACY COMMISSION
SEC. 7. Functions of the National Privacy Commission. To administer and implement the
provisions of this Act, and to monitor and ensure compliance of the country with international
standards set for data protection, there is hereby created an independent body to be known as the
National Privacy Commission, winch shall have the following functions:
(a) Ensure compliance of personal information controllers with the provisions of this Act;
(b) Receive complaints, institute investigations, facilitate or enable settlement of complaints
through the use of alternative dispute resolution processes, adjudicate, award indemnity on
matters affecting any personal information, prepare reports on disposition of complaints and
resolution of any investigation it initiates, and, in cases it deems appropriate, publicize any such
report: Provided, That in resolving any complaint or investigation (except where amicable
settlement is reached by the parties), the Commission shall act as a collegial body. For this
purpose, the Commission may be given access to personal information that is subject of any
complaint and to collect the information necessary to perform its functions under this Act;
(c) Issue cease and desist orders, impose a temporary or permanent ban on the processing of
personal information, upon finding that the processing will be detrimental to national security
and public interest;
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(d) Compel or petition any entity, government agency or instrumentality to abide by its orders or
take action on a matter affecting data privacy;
(e) Monitor the compliance of other government agencies or instrumentalities on their security
and technical measures and recommend the necessary action in order to meet minimum
standards for protection of personal information pursuant to this Act;
(f) Coordinate with other government agencies and the private sector on efforts to formulate and
implement plans and policies to strengthen the protection of personal information in the country;
(g) Publish on a regular basis a guide to all laws relating to data protection;
(h) Publish a compilation of agency system of records and notices, including index and other
finding aids;
(i) Recommend to the Department of Justice (DOJ) the prosecution and imposition of penalties
specified in Sections 25 to 29 of this Act;
(j) Review, approve, reject or require modification of privacy codes voluntarily adhered to by
personal information controllers:Provided, That the privacy codes shall adhere to the underlying
data privacy principles embodied in this Act: Provided, further,That such privacy codes may
include private dispute resolution mechanisms for complaints against any participating personal
information controller. For this purpose, the Commission shall consult with relevant regulatory
agencies in the formulation and administration of privacy codes applying the standards set out in
this Act, with respect to the persons, entities, business activities and business sectors that said
regulatory bodies are authorized to principally regulate pursuant to the law: Provided,
finally. That the Commission may review such privacy codes and require changes thereto for
purposes of complying with this Act;
(k) Provide assistance on matters relating to privacy or data protection at the request of a
national or local agency, a private entity or any person;
(l) Comment on the implication on data privacy of proposed national or local statutes,
regulations or procedures, issue advisory opinions and interpret the provisions of this Act and
other data privacy laws;
(m) Propose legislation, amendments or modifications to Philippine laws on privacy or data
protection as may be necessary;
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(n) Ensure proper and effective coordination with data privacy regulators in other countries and
private accountability agents, participate in international and regional initiatives for data privacy
protection;
(o) Negotiate and contract with other data privacy authorities of other countries for cross-border
application and implementation of respective privacy laws;
(p) Assist Philippine companies doing business abroad to respond to foreign privacy or data
protection laws and regulations; and
(q) Generally perform such acts as may be necessary to facilitate cross-border enforcement of
data privacy protection.
SEC. 8. Confidentiality. The Commission shall ensure at all times the confidentiality of any
personal information that comes to its knowledge and possession.
SEC. 9. Organizational Structure of the Commission. The Commission shall be attached to the
Department of Information and Communications Technology (DICT) and shall be headed by a
Privacy Commissioner, who shall also act as Chairman of the Commission. The Privacy
Commissioner shall be assisted by two (2) Deputy Privacy Commissioners, one to be
responsible for Data Processing Systems and one to be responsible for Policies and Planning.
The Privacy Commissioner and the two (2) Deputy Privacy Commissioners shall be appointed
by the President of the Philippines for a term of three (3) years, and may be reappointed for
another term of three (3) years. Vacancies in the Commission shall be filled in the same manner
in which the original appointment was made.
The Privacy Commissioner must be at least thirty-five (35) years of age and of good moral
character, unquestionable integrity and known probity, and a recognized expert in the field of
information technology and data privacy. The Privacy Commissioner shall enjoy the benefits,
privileges and emoluments equivalent to the rank of Secretary.
The Deputy Privacy Commissioners must be recognized experts in the field of information and
communications technology and data privacy. They shall enjoy the benefits, privileges and
emoluments equivalent to the rank of Undersecretary.
The Privacy Commissioner, the Deputy Commissioners, or any person acting on their behalf or
under their direction, shall not be civilly liable for acts done in good faith in the performance of
their duties. However, he or she shall be liable for willful or negligent acts done by him or her
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which are contrary to law, morals, public policy and good customs even if he or she acted under
orders or instructions of superiors: Provided, That in case a lawsuit is filed against such official
on the subject of the performance of his or her duties, where such performance is lawful, he or
she shall be reimbursed by the Commission for reasonable costs of litigation.
SEC. 10. The Secretariat. The Commission is hereby authorized to establish a Secretariat.
Majority of the members of the Secretariat must have served for at least five (5) years in any
agency of the government that is involved in the processing of personal information including,
but not limited to, the following offices: Social Security System (SSS), Government Service
Insurance System (GSIS), Land Transportation Office (LTO), Bureau of Internal Revenue
(BIR), Philippine Health Insurance Corporation (PhilHealth), Commission on Elections
(COMELEC), Department of Foreign Affairs (DFA), Department of Justice (DOJ), and
Philippine Postal Corporation (Philpost).
CHAPTER III
PROCESSING OF PERSONAL INFORMATION
SEC. 11. General Data Privacy Principles. The processing of personal information shall be
allowed, subject to compliance with the requirements of this Act and other laws allowing
disclosure of information to the public and adherence to the principles of transparency,
legitimate purpose and proportionality.
Personal information must, be:
(a) Collected for specified and legitimate purposes determined and declared before, or as soon as
reasonably practicable after collection, and later processed in a way compatible with such
declared, specified and legitimate purposes only;
(b) Processed fairly and lawfully;
(c) Accurate, relevant and, where necessary for purposes for which it is to be used the
processing of personal information, kept up to date; inaccurate or incomplete data must be
rectified, supplemented, destroyed or their further processing restricted;
(d) Adequate and not excessive in relation to the purposes for which they are collected and
processed;

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(e) Retained only for as long as necessary for the fulfillment of the purposes for which the data
was obtained or for the establishment, exercise or defense of legal claims, or for legitimate
business purposes, or as provided by law; and
(f) Kept in a form which permits identification of data subjects for no longer than is necessary
for the purposes for which the data were collected and processed: Provided, That personal
information collected for other purposes may lie processed for historical, statistical or scientific
purposes, and in cases laid down in law may be stored for longer periods: Provided, further,That
adequate safeguards are guaranteed by said laws authorizing their processing.
The personal information controller must ensure implementation of personal information
processing principles set out herein.
SEC. 12. Criteria for Lawful Processing of Personal Information. The processing of personal
information shall be permitted only if not otherwise prohibited by law, and when at least one of
the following conditions exists:
(a) The data subject has given his or her consent;
(b) The processing of personal information is necessary and is related to the fulfillment of a
contract with the data subject or in order to take steps at the request of the data subject prior to
entering into a contract;
(c) The processing is necessary for compliance with a legal obligation to which the personal
information controller is subject;
(d) The processing is necessary to protect vitally important interests of the data subject,
including life and health;
(e) The processing is necessary in order to respond to national emergency, to comply with the
requirements of public order and safety, or to fulfill functions of public authority which
necessarily includes the processing of personal data for the fulfillment of its mandate; or
(f) The processing is necessary for the purposes of the legitimate interests pursued by the
personal information controller or by a third party or parties to whom the data is disclosed,
except where such interests are overridden by fundamental rights and freedoms of the data
subject which require protection under the Philippine Constitution.

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SEC. 13. Sensitive Personal Information and Privileged Information. The processing of
sensitive personal information and privileged information shall be prohibited, except in the
following cases:
(a) The data subject has given his or her consent, specific to the purpose prior to the processing,
or in the case of privileged information, all parties to the exchange have given their consent
prior to processing;
(b) The processing of the same is provided for by existing laws and regulations: Provided, That
such regulatory enactments guarantee the protection of the sensitive personal information and
the privileged information: Provided, further, That the consent of the data subjects are not
required by law or regulation permitting the processing of the sensitive personal information or
the privileged information;
(c) The processing is necessary to protect the life and health of the data subject or another
person, and the data subject is not legally or physically able to express his or her consent prior to
the processing;
(d) The processing is necessary to achieve the lawful and noncommercial objectives of public
organizations and their associations: Provided, That such processing is only confined and related
to the bona fide members of these organizations or their associations: Provided, further, That the
sensitive personal information are not transferred to third parties: Provided, finally,That consent
of the data subject was obtained prior to processing;
(e) The processing is necessary for purposes of medical treatment, is carried out by a medical
practitioner or a medical treatment institution, and an adequate level of protection of personal
information is ensured; or
(f) The processing concerns such personal information as is necessary for the protection of
lawful rights and interests of natural or legal persons in court proceedings, or the establishment,
exercise or defense of legal claims, or when provided to government or public authority.
SEC. 14. Subcontract of Personal Information. A personal information controller may
subcontract the processing of personal information: Provided, That the personal information
controller shall be responsible for ensuring that proper safeguards are in place to ensure the
confidentiality of the personal information processed, prevent its use for unauthorized purposes,
and generally, comply with the requirements of this Act and other laws for processing of
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personal information. The personal information processor shall comply with all the requirements
of this Act and other applicable laws.
SEC. 15. Extension of Privileged Communication. Personal information controllers may
invoke the principle of privileged communication over privileged information that they lawfully
control or process. Subject to existing laws and regulations, any evidence gathered on privileged
information is inadmissible.
CHAPTER IV
RIGHTS OF THE DATA SUBJECT
SEC. 16. Rights of the Data Subject. The data subject is entitled to:
(a) Be informed whether personal information pertaining to him or her shall be, are being or
have been processed;
(b) Be furnished the information indicated hereunder before the entry of his or her personal
information into the processing system of the personal information controller, or at the next
practical opportunity:
(1) Description of the personal information to be entered into the system;
(2) Purposes for which they are being or are to be processed;
(3) Scope and method of the personal information processing;
(4) The recipients or classes of recipients to whom they are or may be disclosed;
(5) Methods utilized for automated access, if the same is allowed by the data subject, and the
extent to which such access is authorized;
(6) The identity and contact details of the personal information controller or its representative;
(7) The period for which the information will be stored; and
(8) The existence of their rights, i.e., to access, correction, as well as the right to lodge a
complaint before the Commission.
Any information supplied or declaration made to the data subject on these matters shall not be
amended without prior notification of data subject: Provided, That the notification under
subsection (b) shall not apply should the personal information be needed pursuant to
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a subpoena or when the collection and processing are for obvious purposes, including when it is
necessary for the performance of or in relation to a contract or service or when necessary or
desirable in the context of an employer-employee relationship, between the collector and the
data subject, or when the information is being collected and processed as a result of legal
obligation;
(c) Reasonable access to, upon demand, the following:
(1) Contents of his or her personal information that were processed;
(2) Sources from which personal information were obtained;
(3) Names and addresses of recipients of the personal information;
(4) Manner by which such data were processed;
(5) Reasons for the disclosure of the personal information to recipients;
(6) Information on automated processes where the data will or likely to be made as the sole basis
for any decision significantly affecting or will affect the data subject;
(7) Date when his or her personal information concerning the data subject were last accessed
and modified; and
(8) The designation, or name or identity and address of the personal information controller;
(d) Dispute the inaccuracy or error in the personal information and have the personal
information controller correct it immediately and accordingly, unless the request is vexatious or
otherwise unreasonable. If the personal information have been corrected, the personal
information controller shall ensure the accessibility of both the new and the retracted
information and the simultaneous receipt of the new and the retracted information by recipients
thereof: Provided, That the third parties who have previously received such processed personal
information shall he informed of its inaccuracy and its rectification upon reasonable request of
the data subject;
(e) Suspend, withdraw or order the blocking, removal or destruction of his or her personal
information from the personal information controllers filing system upon discovery and
substantial proof that the personal information are incomplete, outdated, false, unlawfully
obtained, used for unauthorized purposes or are no longer necessary for the purposes for which
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they were collected. In this case, the personal information controller may notify third parties
who have previously received such processed personal information; and
(f) Be indemnified for any damages sustained due to such inaccurate, incomplete, outdated,
false, unlawfully obtained or unauthorized use of personal information.
SEC. 17. Transmissibility of Rights of the Data Subject. The lawful heirs and assigns of the
data subject may invoke the rights of the data subject for, which he or she is an heir or assignee
at any time after the death of the data subject or when the data subject is incapacitated or
incapable of exercising the rights as enumerated in the immediately preceding section.
SEC. 18. Right to Data Portability. The data subject shall have the right, where personal
information is processed by electronic means and in a structured and commonly used format, to
obtain from the personal information controller a copy of data undergoing processing in an
electronic or structured format, which is commonly used and allows for further use by the data
subject. The Commission may specify the electronic format referred to above, as well as the
technical standards, modalities and procedures for their transfer.
SEC. 19. Non-Applicability. The immediately preceding sections are not applicable if the
processed personal information are used only for the needs of scientific and statistical research
and, on the basis of such, no activities are carried out and no decisions are taken regarding the
data subject: Provided, That the personal information shall be held under strict confidentiality
and shall be used only for the declared purpose. Likewise, the immediately preceding sections
are not applicable to processing of personal information gathered for the purpose of
investigations in relation to any criminal, administrative or tax liabilities of a data subject.
CHAPTER V
SECURITY OF PERSONAL INFORMATION
SEC. 20. Security of Personal Information. (a) The personal information controller must
implement reasonable and appropriate organizational, physical and technical measures intended
for the protection of personal information against any accidental or unlawful destruction,
alteration and disclosure, as well as against any other unlawful processing.
(b) The personal information controller shall implement reasonable and appropriate measures to
protect personal information against natural dangers such as accidental loss or destruction, and
human dangers such as unlawful access, fraudulent misuse, unlawful destruction, alteration and
contamination.
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(c) The determination of the appropriate level of security under this section must take into
account the nature of the personal information to be protected, the risks represented by the
processing, the size of the organization and complexity of its operations, current data privacy
best practices and the cost of security implementation. Subject to guidelines as the Commission
may issue from time to time, the measures implemented must include:
(1) Safeguards to protect its computer network against accidental, unlawful or unauthorized
usage or interference with or hindering of their functioning or availability;
(2) A security policy with respect to the processing of personal information;
(3) A process for identifying and accessing reasonably foreseeable vulnerabilities in its computer
networks, and for taking preventive, corrective and mitigating action against security incidents
that can lead to a security breach; and
(4) Regular monitoring for security breaches and a process for taking preventive, corrective and
mitigating action against security incidents that can lead to a security breach.
(d) The personal information controller must further ensure that third parties processing personal
information on its behalf shall implement the security measures required by this provision.
(e) The employees, agents or representatives of a personal information controller who are
involved in the processing of personal information shall operate and hold personal information
under strict confidentiality if the personal information are not intended for public disclosure.
This obligation shall continue even after leaving the public service, transfer to another position
or upon termination of employment or contractual relations.
(f) The personal information controller shall promptly notify the Commission and affected data
subjects when sensitive personal information or other information that may, under the
circumstances, be used to enable identity fraud are reasonably believed to have been acquired by
an unauthorized person, and the personal information controller or the Commission believes (bat
such unauthorized acquisition is likely to give rise to a real risk of serious harm to any affected
data subject. The notification shall at least describe the nature of the breach, the sensitive
personal information possibly involved, and the measures taken by the entity to address the
breach. Notification may be delayed only to the extent necessary to determine the scope of the
breach, to prevent further disclosures, or to restore reasonable integrity to the information and
communications system.
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(1) In evaluating if notification is unwarranted, the Commission may take into account
compliance by the personal information controller with this section and existence of good faith
in the acquisition of personal information.
(2) The Commission may exempt a personal information controller from notification where, in
its reasonable judgment, such notification would not be in the public interest or in the interests
of the affected data subjects.
(3) The Commission may authorize postponement of notification where it may hinder the
progress of a criminal investigation related to a serious breach.
CHAPTER VI
ACCOUNTABILITY FOR TRANSFER OF PERSONAL INFORMATION
SEC. 21. Principle of Accountability. Each personal information controller is responsible for
personal information under its control or custody, including information that have been
transferred to a third party for processing, whether domestically or internationally, subject to
cross-border arrangement and cooperation.
(a) The personal information controller is accountable for complying with the requirements of
this Act and shall use contractual or other reasonable means to provide a comparable level of
protection while the information are being processed by a third party.
(b) The personal information controller shall designate an individual or individuals who are
accountable for the organizations compliance with this Act. The identity of the individual(s) so
designated shall be made known to any data subject upon request.
CHAPTER VII
SECURITY OF SENSITIVE PERSONAL
INFORMATION IN GOVERNMENT
SEC 22. Responsibility of Heads of Agencies. All sensitive personal information maintained
by the government, its agencies and instrumentalities shall be secured, as far as practicable, with
the use of the most appropriate standard recognized by the information and communications
technology industry, and as recommended by the Commission. The head of each government
agency or instrumentality shall be responsible for complying with the security requirements
mentioned herein while the Commission shall monitor the compliance and may recommend the
necessary action in order to satisfy the minimum standards.
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SEC. 23. Requirements Relating to Access by Agency Personnel to Sensitive Personal


Information. (a) On-site and Online Access Except as may be allowed through guidelines to
be issued by the Commission, no employee of the government shall have access to sensitive
personal information on government property or through online facilities unless the employee
has received a security clearance from the head of the source agency.
(b) Off-site Access Unless otherwise provided in guidelines to be issued by the Commission,
sensitive personal information maintained by an agency may not be transported or accessed
from a location off government property unless a request for such transportation or access is
submitted and approved by the head of the agency in accordance with the following guidelines:
(1) Deadline for Approval or Disapproval In the case of any request submitted to the head of
an agency, such head of the agency shall approve or disapprove the request within two (2)
business days after the date of submission of the request. In case there is no action by the head
of the agency, then such request is considered disapproved;
(2) Limitation to One thousand (1,000) Records If a request is approved, the head of the
agency shall limit the access to not more than one thousand (1,000) records at a time; and
(3) Encryption Any technology used to store, transport or access sensitive personal
information for purposes of off-site access approved under this subsection shall be secured by
the use of the most secure encryption standard recognized by the Commission.
The requirements of this subsection shall be implemented not later than six (6) months after the
date of the enactment of this Act.
SEC. 24. Applicability to Government Contractors. In entering into any contract that may
involve accessing or requiring sensitive personal information from one thousand (1,000) or more
individuals, an agency shall require a contractor and its employees to register their personal
information processing system with the Commission in accordance with this Act and to comply
with the other provisions of this Act including the immediately preceding section, in the same
manner as agencies and government employees comply with such requirements.
CHAPTER VIII
PENALTIES
SEC. 25. Unauthorized Processing of Personal Information and Sensitive Personal Information.
(a) The unauthorized processing of personal information shall be penalized by imprisonment
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ranging from one (1) year to three (3) years and a fine of not less than Five hundred thousand
pesos (Php500,000.00) but not more than Two million pesos (Php2,000,000.00) shall be
imposed on persons who process personal information without the consent of the data subject, or
without being authorized under this Act or any existing law.
(b) The unauthorized processing of personal sensitive information shall be penalized by
imprisonment ranging from three (3) years to six (6) years and a fine of not less than Five
hundred thousand pesos (Php500,000.00) but not more than Four million pesos
(Php4,000,000.00) shall be imposed on persons who process personal information without the
consent of the data subject, or without being authorized under this Act or any existing law.
SEC. 26. Accessing Personal Information and Sensitive Personal Information Due to
Negligence. (a) Accessing personal information due to negligence shall be penalized by
imprisonment ranging from one (1) year to three (3) years and a fine of not less than Five
hundred thousand pesos (Php500,000.00) but not more than Two million pesos
(Php2,000,000.00) shall be imposed on persons who, due to negligence, provided access to
personal information without being authorized under this Act or any existing law.
(b) Accessing sensitive personal information due to negligence shall be penalized by
imprisonment ranging from three (3) years to six (6) years and a fine of not less than Five
hundred thousand pesos (Php500,000.00) but not more than Four million pesos
(Php4,000,000.00) shall be imposed on persons who, due to negligence, provided access to
personal information without being authorized under this Act or any existing law.
SEC. 27. Improper Disposal of Personal Information and Sensitive Personal Information. (a)
The improper disposal of personal information shall be penalized by imprisonment ranging from
six (6) months to two (2) years and a fine of not less than One hundred thousand pesos
(Php100,000.00) but not more than Five hundred thousand pesos (Php500,000.00) shall be
imposed on persons who knowingly or negligently dispose, discard or abandon the personal
information of an individual in an area accessible to the public or has otherwise placed the
personal information of an individual in its container for trash collection.
b) The improper disposal of sensitive personal information shall be penalized by imprisonment
ranging from one (1) year to three (3) years and a fine of not less than One hundred thousand
pesos (Php100,000.00) but not more than One million pesos (Php1,000,000.00) shall be imposed
on persons who knowingly or negligently dispose, discard or abandon the personal information
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of an individual in an area accessible to the public or has otherwise placed the personal
information of an individual in its container for trash collection.
SEC. 28. Processing of Personal Information and Sensitive Personal Information for
Unauthorized Purposes. The processing of personal information for unauthorized purposes
shall be penalized by imprisonment ranging from one (1) year and six (6) months to five (5)
years and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more
than One million pesos (Php1,000,000.00) shall be imposed on persons processing personal
information for purposes not authorized by the data subject, or otherwise authorized under this
Act or under existing laws.
The processing of sensitive personal information for unauthorized purposes shall be penalized
by imprisonment ranging from two (2) years to seven (7) years and a fine of not less than Five
hundred thousand pesos (Php500,000.00) but not more than Two million pesos
(Php2,000,000.00) shall be imposed on persons processing sensitive personal information for
purposes not authorized by the data subject, or otherwise authorized under this Act or under
existing laws.
SEC. 29. Unauthorized Access or Intentional Breach. The penalty of imprisonment ranging
from one (1) year to three (3) years and a fine of not less than Five hundred thousand pesos
(Php500,000.00) but not more than Two million pesos (Php2,000,000.00) shall be imposed on
persons who knowingly and unlawfully, or violating data confidentiality and security data
systems, breaks in any way into any system where personal and sensitive personal information is
stored.
SEC. 30. Concealment of Security Breaches Involving Sensitive Personal Information. The
penalty of imprisonment of one (1) year and six (6) months to five (5) years and a fine of not
less than Five hundred thousand pesos (Php500,000.00) but not more than One million pesos
(Php1,000,000.00) shall be imposed on persons who, after having knowledge of a security
breach and of the obligation to notify the Commission pursuant to Section 20(f), intentionally or
by omission conceals the fact of such security breach.
SEC. 31. Malicious Disclosure. Any personal information controller or personal information
processor or any of its officials, employees or agents, who, with malice or in bad faith, discloses
unwarranted or false information relative to any personal information or personal sensitive
information obtained by him or her, shall be subject to imprisonment ranging from one (1) year
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and six (6) months to five (5) years and a fine of not less than Five hundred thousand pesos
(Php500,000.00) but not more than One million pesos (Php1,000,000.00).
SEC. 32. Unauthorized Disclosure. (a) Any personal information controller or personal
information processor or any of its officials, employees or agents, who discloses to a third party
personal information not covered by the immediately preceding section without the consent of
the data subject, shall he subject to imprisonment ranging from one (1) year to three (3) years
and a fine of not less than Five hundred thousand pesos (Php500,000.00) but not more than One
million pesos (Php1,000,000.00).
(b) Any personal information controller or personal information processor or any of its officials,
employees or agents, who discloses to a third party sensitive personal information not covered
by the immediately preceding section without the consent of the data subject, shall be subject to
imprisonment ranging from three (3) years to five (5) years and a fine of not less than Five
hundred thousand pesos (Php500,000.00) but not more than Two million pesos
(Php2,000,000.00).
SEC. 33. Combination or Series of Acts. Any combination or series of acts as defined in
Sections 25 to 32 shall make the person subject to imprisonment ranging from three (3) years to
six (6) years and a fine of not less than One million pesos (Php1,000,000.00) but not more than
Five million pesos (Php5,000,000.00).
SEC. 34. Extent of Liability. If the offender is a corporation, partnership or any juridical
person, the penalty shall be imposed upon the responsible officers, as the case may be, who
participated in, or by their gross negligence, allowed the commission of the crime. If the
offender is a juridical person, the court may suspend or revoke any of its rights under this Act. If
the offender is an alien, he or she shall, in addition to the penalties herein prescribed, be
deported without further proceedings after serving the penalties prescribed. If the offender is a
public official or employee and lie or she is found guilty of acts penalized under Sections 27 and
28 of this Act, he or she shall, in addition to the penalties prescribed herein, suffer perpetual or
temporary absolute disqualification from office, as the case may be.
SEC. 35. Large-Scale. The maximum penalty in the scale of penalties respectively provided
for the preceding offenses shall be imposed when the personal information of at least one
hundred (100) persons is harmed, affected or involved as the result of the above mentioned
actions.
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SEC. 36. Offense Committed by Public Officer. When the offender or the person responsible
for the offense is a public officer as defined in the Administrative Code of the Philippines in the
exercise of his or her duties, an accessory penalty consisting in the disqualification to occupy
public office for a term double the term of criminal penalty imposed shall he applied.
SEC. 37. Restitution. Restitution for any aggrieved party shall be governed by the provisions
of the New Civil Code.
CHAPTER IX
MISCELLANEOUS PROVISIONS
SEC. 38. Interpretation. Any doubt in the interpretation of any provision of this Act shall be
liberally interpreted in a manner mindful of the rights and interests of the individual about whom
personal information is processed.
SEC. 39. Implementing Rules and Regulations (IRR). Within ninety (90) days from the
effectivity of this Act, the Commission shall promulgate the rules and regulations to effectively
implement the provisions of this Act.
SEC. 40. Reports and Information. The Commission shall annually report to the President and
Congress on its activities in carrying out the provisions of this Act. The Commission shall
undertake whatever efforts it may determine to be necessary or appropriate to inform and
educate the public of data privacy, data protection and fair information rights and
responsibilities.
SEC. 41. Appropriations Clause. The Commission shall be provided with an initial
appropriation of Twenty million pesos (Php20,000,000.00) to be drawn from the national
government. Appropriations for the succeeding years shall be included in the General
Appropriations Act. It shall likewise receive Ten million pesos (Php10,000,000.00) per year for
five (5) years upon implementation of this Act drawn from the national government.
SEC. 42. Transitory Provision. Existing industries, businesses and offices affected by the
implementation of this Act shall be given one (1) year transitory period from the effectivity of
the IRR or such other period as may be determined by the Commission, to comply with the
requirements of this Act.
In case that the DICT has not yet been created by the time the law takes full force and effect, the
National Privacy Commission shall be attached to the Office of the President.
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SEC. 43. Separability Clause. If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain
valid and subsisting.
SEC. 44. Repealing Clause. The provision of Section 7 of Republic Act No. 9372, otherwise
known as the Human Security Act of 2007, is hereby amended. Except as otherwise expressly
provided in this Act, all other laws, decrees, executive orders, proclamations and administrative
regulations or parts thereof inconsistent herewith are hereby repealed or modified accordingly.
SEC. 45. Effectivity Clause. This Act shall take effect fifteen (15) days after its publication in
at least two (2) national newspapers of general circulation.

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[ Republic Act No. 10175 ]


AN ACT DEFINING CYBERCRIME, PROVIDING FOR THE PREVENTION,
INVESTIGATION, SUPPRESSION AND THE IMPOSITION OF PENALTIES THEREFOR
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
CHAPTER I
PRELIMINARY PROVISIONS
SECTION 1. Title. This Act shall be known as the Cybercrime Prevention Act of 2012.
SEC. 2. Declaration of Policy. The State recognizes the vital role of information and
communications industries such as content production, telecommunications, broadcasting
electronic commerce, and data processing, in the nations overall social and economic
development. The State also recognizes the importance of providing an environment conducive
to the development, acceleration, and rational application and exploitation of information and
communications technology (ICT) to attain free, easy, and intelligible access to exchange and/or
delivery of information; and the need to protect and safeguard the integrity of computer,
computer and communications systems, networks, and databases, and the confidentiality,
integrity, and availability of information and data stored therein, from all forms of misuse,
abuse, and illegal access by making punishable under the law such conduct or conducts. In this
light, the State shall adopt sufficient powers to effectively prevent and combat such offenses by
facilitating their detection, investigation, and prosecution at both the domestic and international
levels, and by providing arrangements for fast and reliable international cooperation.
SEC. 3. Definition of Terms. For purposes of this Act, the following terms are hereby defined
as follows:
(a) Access refers to the instruction, communication with, storing data in, retrieving data from, or
otherwise making use of any resources of a computer system or communication network.
(b) Alteration refers to the modification or change, in form or substance, of an existing computer
data or program.
(c) Communication refers to the transmission of information through ICT media, including
voice, video and other forms of data.
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(d) Computer refers to an electronic, magnetic, optical, electrochemical, or other data processing
or communications device, or grouping of such devices, capable of performing logical,
arithmetic, routing, or storage functions and which includes any storage facility or equipment or
communications facility or equipment directly related to or operating in conjunction with such
device. It covers any type of computer device including devices with data processing
capabilities like mobile phones, smart phones, computer networks and other devices connected
to the internet.
(e) Computer data refers to any representation of facts, information, or concepts in a form
suitable for processing in a computer system including a program suitable to cause a computer
system to perform a function and includes electronic documents and/or electronic data messages
whether stored in local computer systems or online.
(f) Computer program refers to a set of instructions executed by the computer to achieve
intended results.
(g) Computer system refers to any device or group of interconnected or related devices, one or
more of which, pursuant to a program, performs automated processing of data. It covers any
type of device with data processing capabilities including, but not limited to, computers and
mobile phones. The device consisting of hardware and software may include input, output and
storage components which may stand alone or be connected in a network or other similar
devices. It also includes computer data storage devices or media.
(h) Without right refers to either: (i) conduct undertaken without or in excess of authority; or (ii)
conduct not covered by established legal defenses, excuses, court orders, justifications, or
relevant principles under the law.
(i) Cyber refers to a computer or a computer network, the electronic medium in which online
communication takes place.
(j) Critical infrastructure refers to the computer systems, and/or networks, whether physical or
virtual, and/or the computer programs, computer data and/or traffic data so vital to this country
that the incapacity or destruction of or interference with such system and assets would have a
debilitating impact on security, national or economic security, national public health and safety,
or any combination of those matters.

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(k) Cybersecurity refers to the collection of tools, policies, risk management approaches,
actions, training, best practices, assurance and technologies that can be used to protect the cyber
environment and organization and users assets.
(l) Database refers to a representation of information, knowledge, facts, concepts, or instructions
which are being prepared, processed or stored or have been prepared, processed or stored in a
formalized manner and which are intended for use in a computer system.
(m) Interception refers to listening to, recording, monitoring or surveillance of the content of
communications, including procuring of the content of data, either directly, through access and
use of a computer system or indirectly, through the use of electronic eavesdropping or tapping
devices, at the same time that the communication is occurring.
(n) Service provider refers to:
(1) Any public or private entity that provides to users of its service the ability to communicate
by means of a computer system; and
(2) Any other entity that processes or stores computer data on behalf of such communication
service or users of such service.
(o) Subscribers information refers to any information contained in the form of computer data or
any other form that is held by a service provider, relating to subscribers of its services other than
traffic or content data and by which identity can be established:
(1) The type of communication service used, the technical provisions taken thereto and the
period of service;
(2) The subscribers identity, postal or geographic address, telephone and other access numbers,
any assigned network address, billing and payment information, available on the basis of the
service agreement or arrangement; and
(3) Any other available information on the site of the installation of communication equipment,
available on the basis of the service agreement or arrangement.
(p) Traffic data or non-content data refers to any computer data other than the content of the
communication including, but not limited to, the communications origin, destination, route,
time, date, size, duration, or type of underlying service.

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CHAPTER II
PUNISHABLE ACTS
SEC. 4. Cybercrime Offenses. The following acts constitute the offense of cybercrime
punishable under this Act:
(a) Offenses against the confidentiality, integrity and availability of computer data and systems:
(1) Illegal Access. The access to the whole or any part of a computer system without right.
(2) Illegal Interception. The interception made by technical means without right of any nonpublic transmission of computer data to, from, or within a computer system including
electromagnetic emissions from a computer system carrying such computer data.
(3) Data Interference. The intentional or reckless alteration, damaging, deletion or
deterioration of computer data, electronic document, or electronic data message, without right,
including the introduction or transmission of viruses.
(4) System Interference. The intentional alteration or reckless hindering or interference with
the functioning of a computer or computer network by inputting, transmitting, damaging,
deleting, deteriorating, altering or suppressing computer data or program, electronic document,
or electronic data message, without right or authority, including the introduction or transmission
of viruses.
(5) Misuse of Devices.
(i) The use, production, sale, procurement, importation, distribution, or otherwise making
available, without right, of:
(aa) A device, including a computer program, designed or adapted primarily for the purpose of
committing any of the offenses under this Act; or
(bb) A computer password, access code, or similar data by which the whole or any part of a
computer system is capable of being accessed with intent that it be used for the purpose of
committing any of the offenses under this Act.
(ii) The possession of an item referred to in paragraphs 5(i)(aa) or (bb) above with intent to use
said devices for the purpose of committing any of the offenses under this section.

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(6) Cyber-squatting. The acquisition of a domain name over the internet in bad faith to profit,
mislead, destroy reputation, and deprive others from registering the same, if such a domain
name is:
(i) Similar, identical, or confusingly similar to an existing trademark registered with the
appropriate government agency at the time of the domain name registration:
(ii) Identical or in any way similar with the name of a person other than the registrant, in case of
a personal name; and
(iii) Acquired without right or with intellectual property interests in it.
(b) Computer-related Offenses:
(1) Computer-related Forgery.
(i) The input, alteration, or deletion of any computer data without right resulting in inauthentic
data with the intent that it be considered or acted upon for legal purposes as if it were authentic,
regardless whether or not the data is directly readable and intelligible; or
(ii) The act of knowingly using computer data which is the product of computer-related forgery
as defined herein, for the purpose of perpetuating a fraudulent or dishonest design.
(2) Computer-related Fraud. The unauthorized input, alteration, or deletion of computer data
or program or interference in the functioning of a computer system, causing damage thereby
with fraudulent intent: Provided, That if no
damage has yet been caused, the penalty imposable shall be one (1) degree lower.
(3) Computer-related Identity Theft. The intentional acquisition, use, misuse, transfer,
possession, alteration or deletion of identifying information belonging to another, whether
natural or juridical, without right: Provided, That if no damage has yet been caused, the penalty
imposable shall be one (1) degree lower.
(c) Content-related Offenses:
(1) Cybersex. The willful engagement, maintenance, control, or operation, directly or
indirectly, of any lascivious exhibition of sexual organs or sexual activity, with the aid of a
computer system, for favor or consideration.

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(2) Child Pornography. The unlawful or prohibited acts defined and punishable by Republic
Act No. 9775 or the Anti-Child Pornography Act of 2009, committed through a computer
system: Provided, That the penalty to be imposed shall be (1) one degree higher than that
provided for in Republic Act No. 9775.
(3) Unsolicited Commercial Communications. The transmission of commercial electronic
communication with the use of computer system which seek to advertise, sell, or offer for sale
products and services are prohibited unless:
(i) There is prior affirmative consent from the recipient; or
(ii) The primary intent of the communication is for service and/or administrative announcements
from the sender to its existing users, subscribers or customers; or
(iii) The following conditions are present:
(aa) The commercial electronic communication contains a simple, valid, and reliable way for the
recipient to reject. receipt of further commercial electronic messages (opt-out) from the same
source;
(bb) The commercial electronic communication does not purposely disguise the source of the
electronic message; and
(cc) The commercial electronic communication does not purposely include misleading
information in any part of the message in order to induce the recipients to read the message.
(4) Libel. The unlawful or prohibited acts of libel as defined in Article 355 of the Revised
Penal Code, as amended, committed through a computer system or any other similar means
which may be devised in the future.
SEC. 5. Other Offenses. The following acts shall also constitute an offense:
(a) Aiding or Abetting in the Commission of Cybercrime. Any person who willfully abets or
aids in the commission of any of the offenses enumerated in this Act shall be held liable.
(b) Attempt in the Commission of Cybercrime. Any person who willfully attempts to commit
any of the offenses enumerated in this Act shall be held liable.
SEC. 6. All crimes defined and penalized by the Revised Penal Code, as amended, and special
laws, if committed by, through and with the use of information and communications
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technologies shall be covered by the relevant provisions of this Act: Provided, That the penalty
to be imposed shall be one (1) degree higher than that provided for by the Revised Penal Code,
as amended, and special laws, as the case may be.
SEC. 7. Liability under Other Laws. A prosecution under this Act shall be without prejudice
to any liability for violation of any provision of the Revised Penal Code, as amended, or special
laws.
CHAPTER III
PENALTIES
SEC. 8. Penalties. Any person found guilty of any of the punishable acts enumerated in
Sections 4(a) and 4(b) of this Act shall be punished with imprisonment of prision mayor or a
fine of at least Two hundred thousand pesos (PhP200,000.00) up to a maximum amount
commensurate to the damage incurred or both.
Any person found guilty of the punishable act under Section 4(a)(5) shall be punished with
imprisonment of prision mayor or a fine of not more than Five hundred thousand pesos
(PhP500,000.00) or both.
If punishable acts in Section 4(a) are committed against critical infrastructure, the penalty
of reclusion temporal or a fine of at least Five hundred thousand pesos (PhP500,000.00) up to
maximum amount commensurate to the damage incurred or both, shall be imposed.
Any person found guilty of any of the punishable acts enumerated in Section 4(c)(1) of this Act
shall be punished with imprisonment of prision mayor or a fine of at least Two hundred
thousand pesos (PhP200,000.00) but not exceeding One million pesos (PhP1,000,000.00) or
both.
Any person found guilty of any of the punishable acts enumerated in Section 4(c)(2) of this Act
shall be punished with the penalties as enumerated in Republic Act No. 9775 or the Anti-Child
Pornography Act of 2009: Provided, That the penalty to be imposed shall be one (1) degree
higher than that provided for in Republic Act No. 9775, if committed through a computer
system.
Any person found guilty of any of the punishable acts enumerated in Section 4(c)(3) shall be
punished with imprisonment of arresto mayor or a fine of at least Fifty thousand pesos
(PhP50,000.00) but not exceeding Two hundred fifty thousand pesos (PhP250,000.00) or both.
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Any person found guilty of any of the punishable acts enumerated in Section 5 shall be punished
with imprisonment one (1) degree lower than that of the prescribed penalty for the offense or a
fine of at least One hundred thousand pesos (PhP100,000.00) but not exceeding Five hundred
thousand pesos (PhP500,000.00) or both.
SEC. 9. Corporate Liability. When any of the punishable acts herein defined are knowingly
committed on behalf of or for the benefit of a juridical person, by a natural person acting either
individually or as part of an organ of the juridical person, who has a leading position within,
based on: (a) a power of representation of the juridical person provided the act committed falls
within the scope of such authority; (b) an authority to take decisions on behalf of the juridical
person: Provided, That the act committed falls within the scope of such authority; or (c) an
authority to exercise control within the juridical person, the juridical person shall be held liable
for a fine equivalent to at least double the fines imposable in Section 7 up to a maximum of Ten
million pesos (PhP10,000,000.00).
If the commission of any of the punishable acts herein defined was made possible due to the
lack of supervision or control by a natural person referred to and described in the preceding
paragraph, for the benefit of that juridical person by a natural person acting under its authority,
the juridical person shall be held liable for a fine equivalent to at least double the fines
imposable in Section 7 up to a maximum of Five million pesos (PhP5,000,000.00).
The liability imposed on the juridical person shall be without prejudice to the criminal liability
of the natural person who has committed the offense.
CHAPTER IV
ENFORCEMENT AND IMPLEMENTATION
SEC. 10. Law Enforcement Authorities. The National Bureau of Investigation (NBI) and the
Philippine National Police (PNP) shall be responsible for the efficient and effective law
enforcement of the provisions of this Act. The NBI and the PNP shall organize a cybercrime unit
or center manned by special investigators to exclusively handle cases involving violations of this
Act.
SEC. 11. Duties of Law Enforcement Authorities. To ensure that the technical nature of
cybercrime and its prevention is given focus and considering the procedures involved for
international cooperation, law enforcement authorities specifically the computer or technology
crime divisions or units responsible for the investigation of cybercrimes are required to submit
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timely and regular reports including pre-operation, post-operation and investigation results and
such other documents as may be required to the Department of Justice (DOJ) for review and
monitoring.
SEC. 12. Real-Time Collection of Traffic Data. Law enforcement authorities, with due cause,
shall be authorized to collect or record by technical or electronic means traffic data in real-time
associated with specified communications transmitted by means of a computer system.
Traffic data refer only to the communications origin, destination, route, time, date, size,
duration, or type of underlying service, but not content, nor identities.
All other data to be collected or seized or disclosed will require a court warrant.
Service providers are required to cooperate and assist law enforcement authorities in the
collection or recording of the above-stated information.
The court warrant required under this section shall only be issued or granted upon written
application and the examination under oath or affirmation of the applicant and the witnesses he
may produce and the showing: (1) that there are reasonable grounds to believe that any of the
crimes enumerated hereinabove has been committed, or is being committed, or is about to be
committed: (2) that there are reasonable grounds to believe that evidence that will be obtained is
essential to the conviction of any person for, or to the solution of, or to the prevention of, any
such crimes; and (3) that there are no other means readily available for obtaining such evidence.
SEC. 13. Preservation of Computer Data. The integrity of traffic data and subscriber
information relating to communication services provided by a service provider shall be
preserved for a minimum period of six (6) months from the date of the transaction. Content data
shall be similarly preserved for six (6) months from the date of receipt of the order from law
enforcement authorities requiring its preservation.
Law enforcement authorities may order a one-time extension for another six (6)
months: Provided, That once computer data preserved, transmitted or stored by a service
provider is used as evidence in a case, the mere furnishing to such service provider of the
transmittal document to the Office of the Prosecutor shall be deemed a notification to preserve
the computer data until the termination of the case.
The service provider ordered to preserve computer data shall keep confidential the order and its
compliance.
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SEC. 14. Disclosure of Computer Data. Law enforcement authorities, upon securing a court
warrant, shall issue an order requiring any person or service provider to disclose or submit
subscribers information, traffic data or relevant data in his/its possession or control within
seventy-two (72) hours from receipt of the order in relation to a valid complaint officially
docketed and assigned for investigation and the disclosure is necessary and relevant for the
purpose of investigation.
SEC. 15. Search, Seizure and Examination of Computer Data. Where a search and seizure
warrant is properly issued, the law enforcement authorities shall likewise have the following
powers and duties.
Within the time period specified in the warrant, to conduct interception, as defined in this Act,
and:
(a) To secure a computer system or a computer data storage medium;
(b) To make and retain a copy of those computer data secured;
(c) To maintain the integrity of the relevant stored computer data;
(d) To conduct forensic analysis or examination of the computer data storage medium; and
(e) To render inaccessible or remove those computer data in the accessed computer or computer
and communications network.
Pursuant thereof, the law enforcement authorities may order any person who has knowledge
about the functioning of the computer system and the measures to protect and preserve the
computer data therein to provide, as is reasonable, the necessary information, to enable the
undertaking of the search, seizure and examination.
Law enforcement authorities may request for an extension of time to complete the examination
of the computer data storage medium and to make a return thereon but in no case for a period
longer than thirty (30) days from date of approval by the court.
SEC. 16. Custody of Computer Data. All computer data, including content and traffic data,
examined under a proper warrant shall, within forty-eight (48) hours after the expiration of the
period fixed therein, be deposited with the court in a sealed package, and shall be accompanied
by an affidavit of the law enforcement authority executing it stating the dates and times covered
by the examination, and the law enforcement authority who may access the deposit, among
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other relevant data. The law enforcement authority shall also certify that no duplicates or copies
of the whole or any part thereof have been made, or if made, that all such duplicates or copies
are included in the package deposited with the court. The package so deposited shall not be
opened, or the recordings replayed, or used in evidence, or then contents revealed, except upon
order of the court, which shall not be granted except upon motion, with due notice and
opportunity to be heard to the person or persons whose conversation or communications have
been recorded.
SEC. 17. Destruction of Computer Data. Upon expiration of the periods as provided in
Sections 13 and 15, service providers and law enforcement authorities, as the case may be, shall
immediately and completely destroy the computer data subject of a preservation and
examination.
SEC. 18. Exclusionary Rule. Any evidence procured without a valid warrant or beyond the
authority of the same shall be inadmissible for any proceeding before any court or tribunal.
SEC. 19. Restricting or Blocking Access to Computer Data. When a computer data is prima
facie found to be in violation of the provisions of this Act, the DOJ shall issue an order to
restrict or block access to such computer data.
SEC. 20. Noncompliance. Failure to comply with the provisions of Chapter IV hereof
specifically the orders from law enforcement authorities shall be punished as a violation of
Presidential Decree No. 1829 with imprisonment of prision correctional in its maximum period
or a fine of One hundred thousand pesos (Php100,000.00) or both, for each and every
noncompliance with an order issued by law enforcement authorities.
CHAPTER V
JURISDICTION
SEC. 21. Jurisdiction. The Regional Trial Court shall have jurisdiction over any violation of
the provisions of this Act. including any violation committed by a Filipino national regardless of
the place of commission. Jurisdiction shall lie if any of the elements was committed within the
Philippines or committed with the use of any computer system wholly or partly situated in the
country, or when by such commission any damage is caused to a natural or juridical person who,
at the time the offense was committed, was in the Philippines.
There shall be designated special cybercrime courts manned by specially trained judges to
handle cybercrime cases.
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CHAPTER VI
INTERNATIONAL COOPERATION
Sec. 22. General Principles Relating to International Cooperation All relevant international
instruments on international cooperation in criminal matters, arrangements agreed on the basis
of uniform or reciprocal legislation, and domestic laws, to the widest extent possible for the
purposes of investigations or proceedings concerning criminal offenses related to computer
systems and data, or for the collection of evidence in electronic form of a criminal, offense shall
be given full force and effect.
CHAPTER VII
COMPETENT AUTHORITIES
SEC 23. Department of Justice (DOJ). There is hereby created an Office of Cybercrime
within the DOJ designated as the central authority in all matters related to international mutual
assistance and extradition.
SEC. 24. Cybercrime Investigation and Coordinating Center. There is hereby created, within
thirty (30) days from the effectivity of this Act, an inter-agency body to be known as the
Cybercrime Investigation and Coordinating Center (CICC), under the administrative supervision
of the Office of the President, for policy coordination among concerned agencies and for the
formulation and enforcement of the national cybersecurity plan.
SEC. 25. Composition. The CICC shall be headed by the Executive Director of the
Information and Communications Technology Office under the Department of Science and
Technology (ICTO-DOST) as Chairperson with the Director of the NBI as Vice Chairperson; the
Chief of the PNP; Head of the DOJ Office of Cybercrime; and one (1) representative from the
private sector and academe, as members. The CICC shall be manned by a secretariat of selected
existing personnel and representatives from the different participating agencies.
SEC. 26. Powers and Functions. The CICC shall have the following powers and functions:
(a) To formulate a national cybersecurity plan and extend immediate assistance for the
suppression of real-time commission of cybercrime offenses through a computer emergency
response team (CERT);
(b) To coordinate the preparation of appropriate and effective measures to prevent and suppress
cybercrime activities as provided for in this Act;
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(c) To monitor cybercrime cases being bandied by participating law enforcement and
prosecution agencies;
(d) To facilitate international cooperation on intelligence, investigations, training and capacity
building related to cybercrime prevention, suppression and prosecution;
(e) To coordinate the support and participation of the business sector, local government units and
nongovernment organizations in cybercrime prevention programs and other
related projects;
(f) To recommend the enactment of appropriate laws, issuances, measures and policies;
(g) To call upon any government agency to render assistance in the accomplishment of the
CICCs mandated tasks and functions; and
(h) To perform all other matters related to cybercrime prevention and suppression, including
capacity building and such other functions and duties as may be necessary for the proper
implementation of this Act.
CHAPTER VIII
FINAL PROVISIONS
SEC. 27. Appropriations. The amount of Fifty million pesos (PhP50,000,000.00) shall be
appropriated annually for the implementation of this Act.
SEC. 28. Implementing Rules and Regulations. The ICTO-DOST, the DOJ and the
Department of the Interior and Local Government (DILG) shall jointly formulate the necessary
rules and regulations within ninety (90) days from approval of this Act, for its effective
implementation.
SEC. 29. Separability Clause If any provision of this Act is held invalid, the other provisions
not affected shall remain in full force and effect.
SEC. 30. Repealing Clause. All laws, decrees or rules inconsistent with this Act are hereby
repealed or modified accordingly. Section 33(a) of Republic Act No. 8792 or the Electronic
Commerce Act is hereby modified accordingly.
SEC. 31. Effectivity. This Act shall take effect fifteen (15) days after the completion of its
publication in the Official Gazette or in at least two (2) newspapers of general circulation.
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REPUBLIC ACT NO. 8792 June 14, 2000

AN ACT PROVIDING AND USE OF ELECTRONIC COMMERCIAL AND NONCOMMERCIAL TRANSACTIONS, PENALTIES FOR UNLAWFUL USE THEREOF,
AND OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress


assembled:

PART I
SHORT TITLE AND DECLARATION OF POLICY

Section 1. Short Title- This Act shall be known and cited as the "Electronic Commerce Act."

Section 2. Declaration of Policy- The State recognizes the vital role of information and
communications technology (ICT) in nation-building; the need to create an information-friendly
environment which supports and ensures the availability, diversity and affordability of ICT
products and services; the primary responsibility of the private sector in contributing
investments and services in ICT; the need to develop, with appropriate training programs and
institutional policy changes, human resources for the information age, a labor force skilled in
the use of ICT and population capable of operating and utilizing electronic appliances and
computers; its obligation to facilitate the transfer and promotions of technology; to ensure
network security, connectivity and neutrality of technology for the national benefit; and the need
to marshal, organize and deploy national information infrastructures, comprising in both
communications network and strategic information services, including their interconnection to
the global information networks, with the necessary and appropriate legal, financial, diplomatic
and technical framework, systems and facilities.
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PART II
ELECTRONIC COMMERCE IN GENERAL

CHAPTER I
GENERAL PROVISIONS

Section 3. Objective- This Act aims to facilitate domestic and international dealings,
transactions, arrangements agreements, contracts and exchanges and storage of information
through the utilization of electronic, optical and similar medium, mode instrumentality and
technology to recognize the authenticity and reliability of electronic data messages or electronic
documents related to such activities and to promote the universal use of electronic transactions
in the government and by the general public.

Section 4. Sphere of Application- This Act shall apply to any kind of electronic document used
in the context of commercial and non-commercial activities to include domestic and
international dealings, transactions, arrangements, agreements contracts and exchanges and
storage of information.

Section 5. Definition of Terms- For the purposes of this Act, the following terms are defined, as
follows:

(a) "Addressee" refers to a person who is intended by the originator to receive the electronic
data message or electronic document, but does not include a person acting as an intermediary
with respect to that electronic data message or electronic data document."Computer" refers to
any device or apparatus singly or interconnected which, by electronic, electro-mechanical,
optical and/or magnetic impulse, or other means with the same function, can receive, record,
transmit, store, process, correlate, analyze, projects, retrieve, and/or produce information, data,
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text, graphics, figures, voice, video, symbols or other modes of expression or perform any one
or more of these functions.

(b) "Electronic data message" refers to information generated, sent, received or stored by
electronic, optical or similar means.

(c) "Information and Communications System" refers to a system for generating, sending,
receiving, storing, or otherwise processing electronic documents and includes the computer
system or other similar device by or in which data is recorded or stored and any procedures
related to the recording or storage of electronic document.

(d) "Electronic signature" refers to any distinctive mark, characteristic and/or sound in electronic
from, representing the identity of a person and attached to or logically associated with the
electronic data message or electronic document or any methodology or procedures employed or
adopted by a person and executed or adopted by such person with the intention of authenticating
or approving an electronic data message or electronic document.

(e) "Electronic document" refers to information or the representation of information, data,


figures, symbols or other modes of written expression, described or however represented, by
which a right is established or an obligation extinguished, or by which a fact may be prove and
affirmed, which is receive, recorded, transmitted, stored, processed, retrieved or produced
electronically.

(f) "Electronic key" refers to a secret code which secures and defends sensitive information that
crossover public channels into a form decipherable only with a matching electronic key.

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(g) "Intermediary" refers to a person who in behalf of another person and with respect to a
particular electronic document sends, receives and/or stores provides other services in respect of
that electronic data message or electronic document.

(h) "Originator" refers to a person by whom, or on whose behalf, the electronic document
purports to have been created, generated and/or sent. The term does not include a person acting
as an intermediary with respect to that electronic document.

(i) "Service provider" refers to a provider of-

I. Online services or network access or the operator of facilities therefor including entities
offering the transmission, routing, or providing of connections for online communications,
digital or otherwise, between or among points specified by a user,
of electronic documents of the user's choosing; or

II. The necessary technical means by which electronic documents of an originator may be stored
and made accessible to designated or undesignated third party.

Such service providers shall have no authority to modify or alter the content of the electronic
document received or to make any entry therein on behalf of the originator, addressee or any
third party unless specifically authorized to do so, and who shall retain the electronic document
in accordance with the specific request or as necessary for the purpose of performing the
services it was engaged to perform.

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CHAPTER II
LEGAL RECOGNITION OF ELECTRONIC DATA MESSAGES AND ELECTRONIC
DOCUMENTS

Section 6. Legal Recognition of Electronic Data Messages- Information shall not be denied
validity or enforceability solely on the ground that it is in the form of electronic data message
purporting to give rise to such legal effect, or that it is merely incorporated by reference in that
electronic data message.

Section 7. Legal Recognition of Electronic documents- Electronic documents shall have the
legal effect, validity or enforceability as any other document or legal writing, and-

(a) Where the law requires a document to be in writing, that requirement is met by an electronic
document if the said electronic document maintains its integrity and reliability and can be
authenticated so as to be usable for subsequent reference, in that

i. The electronic document has remained complete and unaltered, apart from the addition of any
endorsement and any authorized change, or any change which arises in the normal course of
communication, storage and display; and

ii. The electronic document is reliable in the light of the purpose for which it was generated and
in the light of all relevant circumstances.

(b) Paragraph (a) applies whether the requirement therein is in the from of an obligation or
whether the law simply provides consequences for the document not being presented or retained
in its original from.

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(c) Where the law requires that a document be presented or retained in its original form, that
requirement is met by an electronic document if-

i. There exists a reliable assurance as to the integrity of the document from the time when it was
first generated in its final from; and

ii. That document is capable of being displayed to the person to whom it is to be presented:
Provided, That no provision of this Act shall apply to vary any and all requirements of existing
laws on formalities required in the execution of documents for their validity.

For evidentiary purposes, an electronic document shall be the functional equivalent of a written
document under existing laws.

This Act does not modify any statutory any statutory rule relating to admissibility of electronic
data massages or electronic documents, except the rules relating to authentication and best
evidence.

Section 8. Legal Recognition of Electronic Signatures.- An electronic signature on the


electronic document shall be equivalent to the signature of a person on a written document if the
signature is an electronic signature and proved by showing that a prescribed procedure, not
alterable by the parties interested in the electronic document, existed under which-

(a) A method is used to identify the party sought to be bound and to indicate said party's access
to the electronic document necessary for his consent or approval through the electronic
signature;

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(b) Said method is reliable and appropriate for the purpose for which the electronic document
was generated or communicated, in the light of all circumstances, including any relevant
agreement;

(c) It is necessary for the party sought to be bound, in or order to proceed further with the
transaction to have executed or provided the electronic signature; and

(d) The other party is authorized and enable to verify the electronic signature and to make the
decision to proceed with the transaction authenticated by the same.

Section 9. Presumption Relating to Electronic Signatures-In any proceedings involving an


electronic signature, it shall be presumed that, (a) The electronic signature is the signature of the
person to whom it correlates; and
(b) The electronic signature was affixed by that person with the intention of signing or
approving the electronic document unless the person relying on the electronically designed
electronic document knows or has noticed of defects in or unreliability of the signature or
reliance on the electronic signature is not reasonable under the circumstances.

Section 10. Original Documents.-

(1) Where the law requires information to be presented or retained in its original form, that
requirement is met by an electronic data message or electronic document if;

(a) the integrity of the information from the time when it was first generated in its final form, as
an electronic document is shown by evidence aliunde or otherwise; and

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(b) where otherwise it is required that information be resented, that the information is capable of
being displayed to the person to whom it is to be presented.

(2) Paragraph (1) applies whether the requirement therein is in the form of an obligation or
whether the law simply provides consequences for the information not being presented or
retained in its original form.

(3) For the purpose of subparagraph (a) of paragraph (1):

(a) the criteria for assessing integrity shall be whether the information has remained complete
and unaltered, apart from the addition of any endorsement and any change which arises in the
normal course of communication, storage and display ; and

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(b) the standard of reliability required shall be assessed in the light of purposed for which the
information was generated and in the light of all the relevant circumstances.

Section 11. Authentication of Electronic Data Messages and Electronic Documents.- Until the
Supreme Court by appropriate rules shall have so provided, electronic documents, electronic data
messages and electronic signatures, shall be authenticated by demonstrating, substantiating and
validating a claimed identity of a user, device, or another entity is an information or
communication system, among other ways, as follows;

(a) The electronic signatures shall be authenticated by proof than a letter , character, number or
other symbol in electronic form representing the persons named in and attached to or logically
associated with an electronic data message, electronic document, or that the appropriate
methodology or security procedures, when applicable, were employed or adopted by such
person, with the intention of authenticating or approving in an electronic data message or
electronic document;

(b) The electronic data message or electronic document shall be authenticated by proof that an
appropriate security procedure, when applicable was adopted and employed for the purpose of
verifying the originator of an electronic data message or electronic document, or detecting error
or alteration in the communication, content or storage of an electronic document or electronic
data message from a specific point, which, using algorithms or codes, identifying words or
numbers, encryptions, answers back or acknowledgement procedures, or similar security
devices.

The supreme court may adopt such other authentication procedures, including the use of
electronic notarization systems as necessary and advisable, as well as the certificate of
authentication on printed or hard copies of the electronic documents or electronic data messages
by electronic notaries, service providers and other duly recognized or appointed certification
authorities.

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The person seeking to introduce an electronic data message or electronic document in any legal
proceeding has the burden of proving its authenticity by evidence capable of supporting a finding
that the electronic data message or electronic document is what the person claims it on be.

In the absence of evidence to the contrary, the integrity of the information and communication
system in which an electronic data message or electronic document is recorded or stored may be
established in any legal proceeding

a.) By evidence that at all material times the information and communication system or other
similar device was operating in a manner that did not affect the integrity of the electronic data
message or electronic document, and there are no other reasonable grounds to doubt the integrity
of the information and communication system,

b.) By showing that the electronic data message or electronic document was recorded or stored
by a party to the proceedings who is adverse in interest to the party using it; or

c.) By showing that the electronic data message or electronic document was recorded or stored in
the usual and ordinary course of business by a person who is not a party to the proceedings and
who did not act under the control of the party using the record.

Section 12. Admissibility and Evidential Weight of Electronic Data Message or electronic
document. In any legal proceedings, nothing in the application of the rules on evidence shall
deny the admissibility of an electronic data message or electronic document in evidence

(a) On the sole ground that it is in electronic form; or

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(b) On the ground that it is not in the standard written form, and the electronic data message or
electronic document meeting, and complying with the requirements under Sections 6 or7 hereof
shall be the best evidence of the agreement and transaction contained therein.

In assessing the evidential weight of an electronic data message or electronic document, the
reliability of the manner in which it was generated, stored or communicated, the reliability of the
manner in which its originator was identified, and other relevant factor shall be given due regard.

Section 13, Retention of Electronic Data Message or Electronic Document. Notwithstanding


any provision of law, rule or regulation to the contrary

(a) The requirement in any provision of law that certain documents be retained in their original
form is satisfied by retaining them in the form of an electronic data message or electronic
document which

(i) Remains accessible so as to be usable for subsequent reference;

(ii) Is retained in the format in which it was generated, sent or received, or in a format which can
be demonstrated to accurately represent the electronic data message or electronic document
generated, sent or received;

(iii) Enables the identification of its originator and addressee, as well as the detemination of the
date and the time it was sent or received.

(b) The requirement referred to in paragraph (a) is satisfied by using the services of a third party,
provided that the conditions set fourth in subparagraph s (I), (ii) and (iii) of paragraph (a) are
met.
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Section 14. Proof by Affidavit, - The matters referred to in Section 12, on admissibility and
Section 9, on the presumption of integrity, may be presumed to have been established by an
affidavit given to the best of the deponent's knowledge subject to the rights of parties in interest
as defined in the following section.

Section 15. Cross Examination.

(1) A deponent of an affidavit referred to in Section 14 that has been introduced in evidence may
be cross-examined as of right by a party who has introduced the affidavit or has caused the
affidavit to be introduced.

(2) Any party to the proceedings has the right to cross-examine a person referred to in section 11,
Paragraph 4, sub paragraph c.

CHAPTER III.
COMMUNICATION OF ELECTRONIC DATA MESSAGES OR ELECTRONIC
DOCUMENTS

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Section 16. Formation of Validity of Electronic Contracts.

(1) Except as otherwise agreed by the parties, an offer, the acceptance of an offer and such other
elements required under existing laws for the formation of contracts may be expressed in,
demonstrated and proved by means of electronic data messages or electronic documents and no
contract shall be denied validity or enforceability on the sole ground that it is in the form of an
electronic data message or electronic document, or that any or all of the elements required under
existing laws for the formation of contracts is expressed, demonstrated and proved by means of
electronic data messages or electronic documents.

(2) Electronic transactions made through networking among banks, or linkages thereof with
other entities or networks, and vice versa, shall be deemed consummated upon the actual
dispensing of cash or the debit of one account and the corresponding credit to another, whether
such transaction is initiated by the depositor or by an authorized collecting party: provided, That
the obligation of one bank, entity, or person similarly situated to another arising therefrom shall
considered absolute and shall not be subjected to the process of preference of credits.

Section 17. Recognition by Parties of Electronic Data Message or Electronic document. As


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

Section 18. Attribution of Electronic Data Message.

(1) An electronic data message or electronic document is that of the originator if it was set by the
originator himself.

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(2) As between the originator and the addressee, an electronic data message or electronic
document is deemed to be that of the originator if it was sent:

(a) by a person who had the authority to act on behalf of the originator with respect to that
electronic data message or electronic document; or

(b) by an information system programmed by, or on behalf of the originator to operate


automatically.

(3) As between the originator and the addressee, an addressee is entitled to regard an electronic
data message or electronic document as being that of the originator, and to act on that
assumption, if:

(a) in order to ascertain whether the electronic data message or electronic document was that of
the originator, the addressee properly applied a procedure previously agreed to by the originator
for that purpose; or

(b) the electronic data message or electronic document as received by the addressee resulted
from the actions of a person whose relationship with the originator or with any agent of the
originator enabled that person to again access to a method used by the originator to identify
electronic data message or electronic documents as his own.

(4) Paragraph (3) does not apply:

(a) as of the time when the addressee has both received notice from the originator that the
electronic data message or electronic document is not that of the originator, and has reasonable
time to act accordingly; or
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(b) in a case within paragraph (3) sub-paragraph (b), at any time when the addressee knew or
should have known, had it exercised reasonable care of used any agreed procedure, that the
electronic data message or electronic document was not that of the originator.

(5) Where an electronic data message or electronic document is that of the originator or is
deemed to be that of the originator, or the addressee is entitled to act on that assumption, then, as
between the originator and the addressee, the addressee is entitled to regard the electronic data
message or electronic document as received as being what the originator intended to send, and to
act on that assumption. The addressee is not so entitled when it knew or should have known, had
it exercised treasonable care or used any agreed procedure, that the transmission resulted in any
error in the electronic data message or electronic document as received.

(6) The addressee is entitled to regard each electronic data message or electronic document
received as a separate electronic data message o r electronic document and to act on that
assumption, except to the extent that it duplicates another electronic data
message or electronic document and the addressee knew or should have known, had it exercised
reasonable care or used any agreed procedure, that the electronic data message or electronic
document was a duplicate.

Section 19. Error on Electronic Data Message or Electronic Document. The addressee is
entitled to regard the electronic data message or electronic document received as that which the
originator intended to send, and to act on that assumption, unless the addressee knew or should
have known, had the addressee exercised reasonable care or used the appropriate procedure

(a) That the transmission resulted in any error there in or in the electronic data message or
electronic document enters the designated information system, or

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(b) That electronic data message or electronic document is sent to an information system which
is not so designated by the addressee for the purposes.

Section 20. Agreement on Acknowledgement of Receipt of Electronic Data Message or


Electronic Document. The following rules shall apply where, on or before sending an
electronic data message or electronic document, the originator and the addressee have agreed, or
in that electronic document or electronic data message, the originator has requested, that receipt
of the electronic document or electronic data message be acknowledge:

a.) Where the originator has not agreed with the addressee that the acknowledgement be given in
particular method, an acknowledgement may be given by or through any communication by the
addressee, automated or otherwise, or any conduct of the addressee, sufficient to indicate to the
originator that the electronic data message or electronic document has been received.

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b.) Where the originator has stated that the effect or significance of the electronic data message e
or electronic document is conditional on receipt of the acknowledgement thereof, the electronic
data message or electronic document is treated as though it has never been sent, until the
acknowledgement is received.

c.) Where the originator has not stated that the effect or significance of the electronic data
message or electronic document is conditional on receipt of the acknowledgement, and the
acknowledgement has not been received by the originator within the time specified or agreed or,
if no time has been specified or agreed, within the reasonable time, the originator may give
notice to the addressee stating that no acknowledgement has been received and specifying a
reasonable time by which the acknowledgement must be received; and if the acknowledgement
is not received within the time specified an subparagraph (c), the originator may, upon notice to
the addressee, treat the electronic data message or electronic document as though it had never
been sent, or exercise any other rights it may have.

Section 21. Time of Dispatch of Electronic Data Messages or Electronic Documents. Unless
otherwise agreed between the originator and the addressee, the dispatch of an electronic data
message or electronic document occurs when it enters an information system outside the control
of the originator or of the person who sent the electronic data message or electronic document
on behalf of the originator.

Section 22. Time of Receipt of Electronic Data Messages or Electronic Documents. Unless
otherwise agreed between the originator and the addressee, the time of receipt of an electronic
data message or electronic document is as follows:

a.) If the addressee has designated an information system for the purpose of receiving electronic
data messages or electronic documents, receipt occurs at the time when the electronic data
message or electronic document enters the designated information system: Provide, however,
That if the originator and the addressee are both participants in the designated information

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system, receipt occurs at the time when the electronic data message or electronic document is
retrieved by the addressee;

b.) If the electronic data message or electronic document is sent to an information system of the
addressee that is not the designated information system, receipt occurs at the time when the
electronic data message or electronic document is retrieved by the addressee;

c.) If the addressee has not designated an information system, receipt occurs when the electronic
data message or electronic document enters an information system of the addressee.

These rules apply not with standing that the place where the information system is located may
be different from the place where the electronic data message or electronic document is deemed
to be received.

Section 23. Place of Dispatch and Receipt of Electronic Data Messages or Electronic
Documents.- Unless otherwise agreed between the originator and the addressee, an electronic
data message or electronic document is deemed to be dispatched at the place where the
originator has its place of business and received at the place where the addressee has its place of
business. This rule shall apply even if the originator or addressee had used a laptop other
portable device to transmit or received his electronic data message or electronic document. This
rules shall also apply to determine the tax situs of such transaction.

For the purpose hereof

a. If the originator or addressee has more than one place of business is that which has the closet
relationship to the underlying transaction or, where there is no underlying transaction, the
principal place of business.

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b. If the originator or the addressee does not have a place of business, reference is to be made to
its habitual residence; or

c. The "usual place of residence" in relation to a body corporate, means the place where it is
incorporated or otherwise legally constituted.

Section 24. Choice of Security Methods. Subject to applicable laws and /or rules and
guidelines promulgated by the Department of Trade and Industry with other appropriate
government agencies, parties to any electronic transaction shall be free to determine the type of
level of electronic data message or electronic document security needed, and to select and use or
implement appropriate technological methods that suit their need.

PART III
ELECTRONIC COMMERCE IN CARRIAGE OF GOODS

Section 25. Actions Related to Contracts of Carriage of Goods. without derogating from the
provisions of Part Two of this Act, this Chapter applies to any action in connection with, or in
pursuance of, a contract of carriage of goods, including but not limited to:

(a) (i) furnishing the marks, number, quantity or weight of goods; (ii) stating or declaring the
nature or value of goods; (iii) issuing a receipt for goods;
(iv) confirming that goods have been loaded;

(b) (i) notifying a person of terms and conditions of the contract; (ii) giving instructions to a
carrier;
(c) (i) claiming delivery of goods;

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(ii) authorizing release of goods;

(iii) giving notice of loss of, or damage to goods;

(d) giving any other notice or statement in connection with the performance of the contract; (e)
undertaking to deliver goods to a named person or a person authorized to claim delivery;

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(f) granting, acquiring, renouncing, surrendering, transferring or negotiating rights in goods; (g)
acquiring or transferring rights and obligations under the contract.
Section 26. Transport Documents. (1) Subject to paragraph (3), where the law requires that
any action referred to in Section 25 be carried out in writing or by using a paper document, that
requirement is met if the action is carried out by using one or more electronic data messages or
electronic documents.

(a) Paragraph (1) applies whether the requirement there in is in the form of an obligation or
whether the law simply provides consequences for failing either to carry out the action in
writing or to use a paper document.

(b) If a right is to be granted to, or an obligation is to be acquired by, one person and no person,
and if the law requires that, in order to effect this, the right or obligation must be conveyed to
that person by the transfer, or use of, a paper document, that requirement is met if the right or
obligation is conveyed by using one or more electronic data messages or electronic documents:
Provided, that a reliable method is used to render such electronic data messages or electronic
documents unique.

(c) For the purposes of paragraph (3), the standard of reliability required shall be assessed in the
light of the purpose for which the right or obligation was conveyed and in the light of all the
circumstances, including any relevant agreement.

(d) Where one or more electronic data messages or electronic documents are used to effect any
action in subparagraph (f) and (g) of Section 25, no paper document used to effect any such
action is valid unless the use of electronic data message or electronic document has been
terminated and replaced by the used of paper documents. A paper document issued in these
circumstances shall contain a statement of such termination. The re[placement of the electronic
data messages or electronic documents by paper documents shall not affect the rights or
obligation of the parties involved.
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(e) If a rule of laws is compulsorily applicable to a contract of carriage of goods which is in, or
is evidenced by, a paper document, that rule shall not be inapplicable to such a contract of
carriage of goods which is evidenced by one or more electronic data messages or electronic
documents by reason of the fact that the contract is evidenced by such electronic data message
or electronic documents instead of by a paper document.

PART IV
ELECTRONIC TRANSACTIONS IN GOVERNMENT

Section 27. Government Use of Electronic Data Messages, Electronic Documents and
Electronic Signature. Not with standing any law to the contrary, within two (2) years from the
date of the effectivity of this Act, all departments, bureaus, offices and agencies of the
government, as well as all government-owned and controlled corporations, that pursuant to law
require or accept the filling of documents, require that documents be created, or retained and/or
submitted, issue permits, licences or certificates of registration or approval, or provide for the
method and manner of payment or settlement of fees and other obligations to the government,
shall

(a) accept the creation, filing or retention of such documents in the form of electronic data
messages or electronic documents; (b) issue permits, licences, or approval in the form of
electronic data messages or electronic documents;
(c) require and/or accept payments, and issue receipt acknowledging such payments, through
systems using electronic data messages or electronic documents; or

(d) transact the government business and/or perform governmental factions using electronic data
messages or electronic documents, and for the purpose, are authorized to adopt and promulgate,
after appropriate public hearing and with due publications in newspapers of general circulation,
the appropriate rules, regulations, or guidelines, to, among others, specify
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1) the manner and format in which such electronic data messages or electronic documents shall
be filed, created, retained or issued;

2) where and when such electronic data messages or electronic documents have to signed, the
use of an electronic signature, the type of electronic signature required;

3) the format of an electronic data message or electronic document and the manner the
electronic signature shall be affixed to the electronic data messages or electronic documents;

4) the control processes and procedures appropriate to ensure adequate integrity, security and
confidentiality of electronic data messages or electronic documents or records of payments;

5) other attributes required to electronic data messages or electronic documents; and

6) the full or limited use of the documents and papers for compliance with the government
requirements: provided, That
this Act shall be itself mandate any department of the government, organ of state or statutory
corporation to accept or issue any document in the form of electronic data messages or
electronic documents upon the adoption, promulgation and publication of the appropriate rules,
regulations or guidelines.

Section 28. RPWEB Promote the Use of Electronic Documents or Electronic Data Messages in
Government and to the General Public.- Within two (2) years from the effectivity of this Act,
There shall be installed an electronic online network in accordance with Administrative Order
332 and House of Representatives Resolution 890, otherwise known as RPWEB, to implement
Part IV of this Act to facilitate the open, speedy and efficient electronic online transmission,
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conveyance and use of electronic data messages or electronic documents amongst all
government departments, agencies, bureaus, offices down to the division level and to the
regional and provincial offices as practicable as possible, government owned and controlled
corporations, local government units, other public instrumentalities, universities, colleges and
other schools, and universal access to the general public.

The RPWEB network shall serve as initial platform of the government information
infrastructure (GII) to facilitate the electronic online transmission and conveyance of
government services to evolve and improve by better technologies or kinds and electronic online
wide area networks utilizing, but not limited to, fiber optic, satellite, wireless and other
broadband telecommunication mediums or modes.

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To facilitate the rapid development of the GII, the Department of Transportation and
Communications, National Telecommunications Commissions and the National Computer
Center are hereby directed to aggressively promote and implement a policy environment and
regulatory framework
that shall lead to the substantial reduction of costs of including, but not ; limited to, lease lines,
land, satellite and dial-up telephone access, cheap broadband and wireless accessibility by
government departments, agencies, bureaus, offices, government owned and controlled
corporations, local government units, other public instrumentalities and the general public, to
include the establishment of a government website portal and a domestic internal exchange
system to facilitate strategic access to government and amongst agencies thereof and the general
public and for the
speedier flow of locally generated internal traffic within the Philippines.

The physical infrastructure of cable and wireless system for cable TV and broadcast excluding
programming content and the management thereof shall be considered as within the activity of
telecommunications for the purpose of electronic commerce and to maximize the convergence of
ICT in the installation of the GII.

Section 29. Authority of the Department of Trade and Industry and Participating Entities. The
Department of Trade and Industry (DTI) shall direct supervise the promotion and development
of electronic commerce in the country with relevant government agencies, without prejudice to
the provision of Republic Act 7653 (Charter of Bangko Sentral ng Pilipinas) and Republic Act
No. 337, (General Banking Act) as amended.

Among others, the DTI is empowered to promulgate rules and regulations, as well as provide
quality standards or issue certifications, as the case may be, and perform such other function as
may be necessary for the Implementation of this Act in the area of electronic commerce to
include, but not limit to, the installation of an online public information and quality and price
monitoring system for goods and services aimed in protecting the interests of the consuming
public availing of the advantages of this Act.
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PART V
FINAL PROVISIONS

Section 30. Extent of Liability of a Service Provider. Except as otherwise provided in this
Section, no person or party shall be subject to any civil or criminal liability in respect of the
electronic data message or electronic document for which the person or party acting as a service
provider as defined in Section 5, merely provides access if such liability is founded on

(a) The obligations and liabilities of the parties under the electronic data message or electronic
document;

(b) The Making, publication, dissemination or distribution of such material or any statement
made in such material, including possible infringement of any right subsisting in or in relation to
such material. Provided, That

i. The service provider does not have actual knowledge, or is not aware of the facts or
circumstances from which it is apparent, that the making, publication, dissemination or
distribution of each material is unlawful or infringes any rights subsisting in or in relation to such
material;

ii The service provider does not knowingly receive a financial benefit directly attributable to the
unlawful or infringing activity;
and

iii. The service provider does not directly commit any infringement or other unlawful act and
does not endues cause another person or party to commit any infringement or other unlawful act
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and/or does not benefit financially from the infringing activity or unlawful act or another person
or party; Provider, further, That nothing in this Section shall affect

(a) Any obligation founded on contract;

(b) The obligation of a service provider as such under a licensing or other regulatory regime
established under written law; (c) Any obligation imposed under any written law;
(d) The civil liability of any party to the extent that such liability forms the basis for injunctive
relief issued by a court under any law requiring that the service provider take or refrain from
action necessary to remove, block or deny access to any material, or to preserve evidence of a
violation of law.

Section 31. Lawful Access. Access to an electronic file, or an electronic signature of an


electronic data message or electronic document shall only be authorized and enforced in favor of
the individual or entity having a legal right to the possession or the use of plaintext, electronic
signature or file or solely for the authorized purposes. The electronic key for identity or integrity
shall not be made available to any person or party without
the consent of the individual or entity in lawful possession of that electronic key;

Section 32. Obligation of Confidentiality. Except for the purposes authorized under this Act,
any person who obtained access to any electronic key, electronic data message or electronic
document, book, register, correspondence, information, or other material pursuant to any powers
conferred under this Act, shall not convey to or share the same with any other person.

Section 33. Penalties. - The following Acts, shall be penalized by fine and/or imprisonment, as
follows:

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(a) Hacking or crackling with refers to unauthorized access into or interference in a computer
system/server or information and communication system; or any access in order to corrupt, alter,
steal, or destroy using a computer or other similar information and communication devices,
without the knowledge and consent of the owner of the computer or information and
communications system, including the introduction of computer viruses and the like, resulting in
the corruption, destruction, alteration, theft or loss of electronic data messages or electronic
documents shall be punished by a minimum fine of One Hundred Thousand pesos (P
100,000.00) and a maximum commensurate to the damage incurred and a mandatory
imprisonment of six (6) months to three (3) years;

(b) Piracy or the unauthorized copying, reproduction, dissemination, or distribution, importation,


use, removal, alteration, substitution, modification, storage, uploading, downloading,
communication, making available to the public, or broadcasting of protected material, electronic
signature or copyrighted works including legally protected sound recording or phonograms or
information material on protected works, through the use of telecommunication networks, such
as, but not limited to, the internet, in a manner that infringes intellectual property rights shall be
punished by a minimum fine of One Hundred Thousand pesos (P 100,000.00) and a maximum
commensurate to the damage incurred and a mandatory imprisonment of six (6) months to three
(3) years;

(c) Violations of the Consumer Act of Republic Act No. 7394 and other relevant to pertinent
laws through transaction covered by or using electronic data messages or electronic documents,
shall be penalized with the same penalties as provided in those laws;

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(d) Other violations of the provisions of this Act, shall be penalized with a maximum penalty of
One million pesos (P1,000,000.00) or six (6) years imprisonment.

Section 34. Implementing Rules and Regulations. The DTI, Department of Budget and
Management and the Bangko Sentral ng Pilipinas are hereby empowered to enforced the
provisions of this Act and issue implementing rules and regulations necessary, in coordination
with the Department of Transportation and Communications, National Computer Center,
National information Technology Council, Commission on Audit, other concerned agencies and
the private sector, to implement this Act within sixty (60) days after its approval.

Failure to Issue rules and regulations shall not in any manner affect the executory nature of the
provisions of this Act.

Section 35. Oversight Committee. There shall be Congressional Oversight Committee


composed of the Committees and Trade and Industry/Commerce, Science and Technology,
Finance and Appropriations of both the Senate and House of Representatives, which shall meet
at least every quarter of the first two years and every semester for the third year after the
approval of this Act to oversee its implementation. The DTI, DBM, Bangko Sentral ng Pilipinas,
and other government agencies as may be determined by the Congressional Committee shall
provide a quarterly performance report of their actions taking in the implementation of this Act
for the first three (3) years.

Section 36. Appropriations. - The amount necessary to carry out the provisions of Sections 27
and 28 of this Act shall be charged against any available funds and/or savings under the General
Appropriations Act of 2000 in the first year of effectivity of this Act. Thereafter, the funds
needed for the continued implementation shall be included in the annual General Appropriations
Act.
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Section 37. Statutory Interpretation. Unless otherwise expressly provided for, the
interpretation of this Act shall give due regard to its international origin and the need to promote
uniformity in its application and the observance of good faith in international trade relations. The
generally accepted principles of international law and convention and electronic commerce shall
likewise be considered.

Section 38. Variation of Agreement. As between parties involved in generating, sending,


receiving, storing or otherwise processing electronic data message or electronic document, any
provisions of this Act may be varied by agreement between and among them.

Section 39. Reciprocity. All benefits, privileges, advantages or statutory rules established
under this Act, including those involving practice of profession, shall be enjoyed only by parties
whose country origin grants the same benefits and privileges or advantages to Filipino citizens.

Section 40. Separability Clause. The provisions of this Act are hereby declared separable and
in the event of any such provision is declared unconstitutional the other provisions to remain in
the force and effect.

Section 41. Repealing Clause. All other laws, decrees, rules and regulations or parts thereof
which are inconsistent with the provisions of this
Act are hereby repealed, amended or modified accordingly.

Section 42. Effectivity. This Act shall take effect immediately after its publication in the
Official Gazette or in at least two (2) newspapers of general circulation.
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INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES


[Republic Act No. 8293]
AN ACT PRESCRIBING THE INTELLECTUAL PROPERTY CODE
AND ESTABLISHING THE INTELLECTUAL PROPERTY OFFICE,
PROVIDING FOR ITS POWERS AND FUNCTIONS, AND FOR OTHER
PURPOSES.chanrobles virtual law library

PART I
THE INTELLECTUAL PROPERTY OFFICE
Section 1.Title. - This Act shall be known as the "Intellectual Property Code of the Philippines."
Sec. 2. Declaration of State Policy. - The State recognizes that an effective intellectual and industrial
property system is vital to the development of domestic and creative activity, facilitates transfer of
technology, attracts foreign investments, and ensures market access for our products. It shall protect
and secure the exclusive rights of scientists, inventors, artists and other gifted citizens to their
intellectual property and creations, particularly when beneficial to the people, for such periods as
provided in this Act.
The use of intellectual property bears a social function. To this end, the State shall promote the
diffusion of knowledge and information for the promotion of national development and progress and
the common good.
It is also the policy of the State to streamline administrative procedures of registering patents,
trademarks and copyright, to liberalize the registration on the transfer of technology, and to enhance
the enforcement of intellectual property rights in the Philippines. (n)
Sec. 3. International Conventions and Reciprocity. - Any person who is a national or who is
domiciled or has a real and effective industrial establishment in a country which is a party to any
convention, treaty or agreement relating to intellectual property rights or the repression of unfair
competition, to which the Philippines is also a party, or extends reciprocal rights to nationals of the
Philippines by law, shall be entitled to benefits to the extent necessary to give effect to any provision
of such convention, treaty or reciprocal law, in addition to the rights to which any owner of an
intellectual property right is otherwise entitled by this Act. (n)
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Sec. 4. Definitions.4.1. The term "intellectual property rights" consists of:


[a] Copyright and Related Rights;
[b] Trademarks and Service Marks;
[c] Geographic Indications;
[d] Industrial Designs;
[e] Patents;
[f] Layout-Designs (Topographies) of Integrated Circuits; and
[g] Protection of Undisclosed Information (n) [TRIPS].
4.2. The term "technology transfer arrangements" refers to contracts or agreements involving the
transfer of systematic knowledge for the manufacture of a product, the application of a process, or
rendering of a service including management contracts; and the transfer, assignment or licensing of
all forms of intellectual property rights, including licensing of computer software except computer
software developed for mass market.
4.3. The term "Office" refers to the Intellectual Property Office created by this Act.
4.4 The term "IPO Gazette" refers to the gazette published by the Office under this Act. (n)
Sec. 5. Functions of the Intellectual Property Office (IPO). 5.1. To administer and implement the State policies declared in this Act, there is hereby created the
Intellectual Property Office (IPO) which shall have the following functions:
[a] Examine applications for grant of letters patent for inventions and register utility models and
industrial designs;
[b] Examine applications for the registration of marks, geographic indication, integrated circuits;
[c] Register technology transfer arrangements and settle disputes involving technology transfer
payments covered by the provisions of Part II, Chapter IX on Voluntary Licensing and develop and
implement strategies to promote and facilitate technology transfer;
[d] Promote the use of patent information as a tool for technology development;
[e] Publish regularly in its own publication the patents, marks, utility models and industrial designs,
issued and approved, and the technology transfer arrangements registered;
[f] Administratively adjudicate contested proceedings affecting intellectual property rights; and
[g] Coordinate with other government agencies and the private sector efforts to formulate and
implement plans and policies to strengthen the protection of intellectual property rights in the
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country.
5.2. The Office shall have custody of all records, books, drawings, specifications, documents, and
other papers and things relating to intellectual property rights applications filed with the Office. (n)
Sec. 6. The Organizational Structure of the IPO. - 6.1. The Office shall be headed by a Director
General who shall be assisted by two (2) Deputies Director General.
6.2. The Office shall be divided into six (6) Bureaus, each of which shall be headed by a Director
and

assisted

by

an

Assistant

Director.

These

Bureaus

are:

[a] The Bureau of Patents;


[b] The Bureau of Trademarks;
[c] The Bureau of Legal Affairs;
[d] The Documentation, Information and Technology Transfer Bureau;
[e] The Management Information System and EDP Bureau; and
[f] The Administrative, Financial and Personnel Services Bureau.
6.3. The Director General, Deputies Director General, Directors and Assistant Directors shall be
appointed by the President, and the other officers and employees of the Office by the Secretary of
Trade and Industry, conformably with and under the Civil Service Law. (n)
Sec. 7. The Director General and Deputies Director General. 7.1. Functions. - The Director General shall exercise the following powers and functions:
[a] Manage and direct all functions and activities of the Office, including the promulgation of rules
and regulations to implement the objectives, policies, plans, programs and projects of the Office:
Provided, That in the exercise of the authority to propose policies and standards in relation to the
following: (1) the effective, efficient, and economical operations of the Office requiring statutory
enactment; (2) coordination with other agencies of government in relation to the enforcement of
intellectual property rights; (3) the recognition of attorneys, agents, or other persons representing
applicants or other parties before the Office; and (4) the establishment of fees for the filing and
processing of an application for a patent, utility model or industrial design or mark or a collective
mark, geographic indication and other marks of ownership, and for all other services performed and
materials furnished by the Office, the Director General shall be subject to the supervision of the
Secretary of Trade and Industry;
[b] Exercise exclusive appellate jurisdiction over all decisions rendered by the Director of Legal
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Affairs, the Director of Patents, the Director of Trademarks, and the Director of the Documentation,
Information and Technology Transfer Bureau. The decisions of the Director General in the exercise
of his appellate jurisdiction in respect of the decisions of the Director of Patents, and the Director of
Trademarks shall be appealable to the Court of Appeals in accordance with the Rules of Court; and
those in respect of the decisions of the Director of Documentation, Information and Technology
Transfer Bureau shall be appealable to the Secretary of Trade and Industry; and
[c] Exercise original jurisdiction to resolve disputes relating to the terms of a license involving the
authors right to public performance or other communication of his work. The decisions of the
Director General in these cases shall be appealable to the Secretary of Trade and Industry.
7.2. Qualifications.- The Director General and the Deputies Director General must be natural born
citizens of the Philippines, at least thirty-five (35) years of age on the day of their appointment,
holders of a college degree, and of proven competence, integrity, probity and independence:
Provided, That the Director General and at least one (1) Deputy Director General shall be members
of the Philippine Bar who have engaged in the practice of law for at least ten (10) years: Provided
further, That in the selection of the Director General and the Deputies Director General,
consideration shall be given to such qualifications as would result, as far as practicable, in the
balanced representation in the Directorate General of the various fields of intellectual property.
7.3. Term of Office. - The Director General and the Deputies Director General shall be appointed by
the President for a term of five (5) years and shall be eligible for reappointment only
once: Provided, That the first Director General shall have a first term of seven (7) years.
Appointment to any vacancy shall be only for the unexpired term of the predecessor.
7.4. The Office of the Director General. - The Office of the Director General shall consist of the
Director General and the Deputies Director General, their immediate staff and such Offices and
Services that the Director General will set up to support directly the Office of the Director
General. (n)
Sec. 8. The Bureau of Patents. - The Bureau of Patents shall have the following functions:
8.1 Search and examination of patent applications and the grant of patents;
8.2 Registration of utility models, industrial designs, and integrated circuits; and
8.3 Conduct studies and researches in the field of patents in order to assist the Director General in
formulating policies on the administration and examination of patents. (n)
Sec. 9. The Bureau of Trademarks. - The Bureau of Trademarks shall have the following functions:
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9.1 Search and examination of the applications for the registration of marks, geographic indications
and other marks of ownership and the issuance of the certificates of registration; and
9.2 Conduct studies and researches in the field of trademarks in order to assist the Director General
in formulating policies on the administration and examination of trademarks. (n)
Sec. 10. The Bureau of Legal Affairs. - The Bureau of Legal Affairs shall have the following
functions:
10.1. Hear and decide opposition to the application for registration of marks; cancellation of
trademarks; subject to the provisions of Section 64, cancellation of patents, utility models, and
industrial designs; and petitions for compulsory licensing of patents;
10.2. (a) Exercise original jurisdiction in administrative complaints for violations of laws involving
intellectual property rights: Provided, That its jurisdiction is limited to complaints where the total
damages claimed are not less than Two hundred thousand pesos (P200,000): Provided, further, That
availment of the provisional remedies may be granted in accordance with the Rules of Court. The
Director of Legal Affairs shall have the power to hold and punish for contempt all those who
disregard orders or writs issued in the course of the proceedings.(n)
(b) After formal investigation, the Director for Legal Affairs may impose one (1) or more of the
following

administrative

penalties:

(i) The issuance of a cease and desist order which shall specify the acts that the respondent shall
cease and desist from and shall require him to submit a compliance report within a reasonable time
which shall be fixed in the order;
(ii) The acceptance of a voluntary assurance of compliance or discontinuance as may be imposed.
Such voluntary assurance may include one or more of the following:
(1) An assurance to comply with the provisions of the intellectual property law violated;
(2) An assurance to refrain from engaging in unlawful and unfair acts and practices subject of the
formal investigation;
(3) An assurance to recall, replace, repair, or refund the money value of defective goods distributed
in commerce; and
(4) An assurance to reimburse the complainant the expenses and costs incurred in prosecuting the
case in the Bureau of Legal Affairs.
The Director of Legal Affairs may also require the respondent to submit periodic compliance reports
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and file a bond to guarantee compliance of his undertaking;


(iii) The condemnation or seizure of products which are subject of the offense. The goods seized
hereunder shall be disposed of in such manner as may be deemed appropriate by the Director of
Legal Affairs, such as by sale, donation to distressed local governments or to charitable or relief
institutions, exportation, recycling into other goods, or any combination thereof, under such
guidelines as he may provide;
(iv) The forfeiture of paraphernalia and all real and personal properties which have been used in the
commission of the offense;
(v) The imposition of administrative fines in such amount as deemed reasonable by the Director of
Legal Affairs, which shall in no case be less than Five thousand pesos (P5,000) nor more than One
hundred fifty thousand pesos (P150,000). In addition, an additional fine of not more than One
thousand pesos (P1,000) shall be imposed for each day of continuing violation;
(vi) The cancellation of any permit, license, authority, or registration which may have been granted
by the Office, or the suspension of the validity thereof for such period of time as the Director of
Legal Affairs may deem reasonable which shall not exceed one (1) year;
(vii) The withholding of any permit, license, authority, or registration which is being secured by the
respondent from the Office;
(viii) The assessment of damages;
(ix) Censure; and
(x) Other analogous penalties or sanctions. (Secs. 6, 7, 8, and 9, Executive Order No. 913 [1983]a)
10.3. The Director General may by Regulations establish the procedure to govern the
implementation of this Section. (n)
Sec. 11. The Documentation, Information and Technology Transfer Bureau. - The Documentation,
Information and Technology Transfer Bureau shall have the following functions:
11.1. Support the search and examination activities of the Office through the following activities:
(a) Maintain and upkeep classification systems whether they be national or international such as the
International Patent Classification (IPC) system;
(b) Provide advisory services for the determination of search patterns;
(c) Maintain search files and search rooms and reference libraries; and
(d) Adapt and package industrial property information.
11.2. Establish networks or intermediaries or regional representatives;
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11.3. Educate the public and build awareness on intellectual property through the conduct of
seminars and lectures, and other similar activities;
11.4. Establish working relations with research and development institutions as well as with local
and international intellectual property professional groups and the like;
11.5 Perform state-of-the-art searches;
11.6 Promote the use of patent information as an effective tool to facilitate the development of
technology in the country;
11.7. Provide technical, advisory, and other services relating to the licensing and promotion of
technology, and carry out an efficient and effective program for technology transfer; and
11.8. Register technology transfer arrangements, and settle disputes involving technology transfer
payments. (n)
Sec. 12. The Management Information Services and EDP Bureau. - The Management Information
Services and EDP Bureau shall:
12.1. Conduct automation planning, research and development, testing of systems, contracts with
firms, contracting, purchase and maintenance of equipment, design and maintenance of systems, user
consultation, and the like; and
12.2. Provide management information support and service to the Office. (n)
Sec. 13. The Administrative, Financial and Human Resource Development Service Bureau. 13.1. The Administrative Service shall:
(a) Provide services relative to procurement and allocation of supplies and equipment, transportation,
messengerial work, cashiering, payment of salaries and other Office's obligations, office
maintenance, proper safety and security, and other utility services; and comply with government
regulatory requirements in the areas of performance appraisal, compensation and benefits,
employment records and reports;
(b) Receive all applications filed with the Office and collect fees therefor; and
(c) Publish patent applications and grants, trademark applications, and registration of marks,
industrial designs, utility models, geographic indication, and lay-out designs of integrated circuits
registrations.
13.2. The Patent and Trademark Administration Services shall perform the following functions
among others:
(a) Maintain registers of assignments, mergings, licenses, and bibliographic on patents and
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trademarks;
(b) Collect maintenance fees, issue certified copies of documents in its custody and perform similar
other activities; and
(c) Hold in custody all the applications filed with the office, and all patent grants, certificate of
registrations issued by the office, and the like.
13.3. The Financial Service shall formulate and manage a financial program to ensure availability
and proper utilization of funds; provide for an effective monitoring system of the financial
operations of the Office; and
13.4. The Human Resource Development Service shall design and implement human resource
development plans and programs for the personnel of the Office; provide for present and future
manpower needs of the organization; maintain high morale and favorable employee attitudes
towards the organization through the continuing design and implementation of employee
development programs. (n)
Sec. 14. Use of Intellectual Property Rights Fees by the IPO. 14.1. For a more effective and expeditious implementation of this Act, the Director General shall be
authorized to retain, without need of a separate approval from any government agency, and subject
only to the existing accounting and auditing rules and regulations, all the fees, fines, royalties and
other charges, collected by the Office under this Act and the other laws that the Office will be
mandated to administer, for use in its operations, like upgrading of its facilities, equipment outlay,
human resource development, and the acquisition of the appropriate office space, among others, to
improve the delivery of its services to the public. This amount, which shall be in addition to the
Office's annual budget, shall be deposited and maintained in a separate account or fund, which may
be used or disbursed directly by the Director General.
14.2. After five (5) years from the coming into force of this Act, the Director General shall, subject
to the approval of the Secretary of Trade and Industry, determine if the fees and charges mentioned
in Subsection 14.1 hereof that the Office shall collect are sufficient to meet its budgetary
requirements. If so, it shall retain all the fees and charges it shall collect under the same conditions
indicated in said Subsection 14.1 but shall forthwith, cease to receive any funds from the annual
budget of the National Government; if not, the provisions of said Subsection 14.1 shall continue to
apply until such time when the Director General, subject to the approval of the Secretary of Trade
and Industry, certifies that the above-stated fees and charges the Office shall collect are enough to
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fund its operations. (n)


Sec. 15. Special Technical and Scientific Assistance. - The Director General is empowered to obtain
the assistance of technical, scientific or other qualified officers and employees of other departments,
bureaus, offices, agencies and instrumentalities of the Government, including corporations owned,
controlled or operated by the Government, when deemed necessary in the consideration of any
matter submitted to the Office relative to the enforcement of the provisions of this Act. (Sec. 3, R. A.
No. 165a)
Sec. 16. Seal of Office. - The Office shall have a seal, the form and design of which shall be
approved by the Director General. (Sec. 4, R. A. No. 165a)
Sec. 17. Publication of Laws and Regulations. - The Director General shall cause to be printed and
make available for distribution, pamphlet copies of this Act, other pertinent laws, executive orders
and information circulars relating to matters within the jurisdiction of the Office. (Sec. 5, R. A. No.
165a)
Sec. 18. The IPO Gazette. - All matters required to be published under this Act shall be published in
the Office's own publication to be known as the IPO Gazette. (n)
Sec. 19. Disqualification of Officers and Employees of the Office. - All officers and employees of the
Office shall not apply or act as an attorney or patent agent of an application for a grant of patent, for
the registration of a utility model, industrial design or mark nor acquire, except by hereditary
succession, any patent or utility model, design registration, or mark or any right, title or interest
therein during their employment and for one (1) year thereafter. (Sec. 77, R. A. No. 165a)

PART II
THE LAW ON PATENTS
Chapter I
GENERAL PROVISIONS
Sec. 20. Definition of Terms Used in Part II, The Law on Patents. -- As used in Part II, the following
terms shall have the following meanings:
20.1. Bureau means the Bureau of Patents;
20.2. Director means the Director of Patents;
20.3. Regulations means the Rules of Practice in Patent Cases formulated by the Director of Patents
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and promulgated by the Director General;


20.4. Examiner means the patent examiner;
20.5. Patent application or application means an application for a patent for an invention except in
Chapters XII and XIII, where application means an application for a utility model and an industrial
design, respectively; and
20.6. Priority date means the date of filing of the foreign application for the same invention referred
to in Section 31 of this Act. (n)
Chapter II
PATENTABILITY
Sec. 21. Patentable Inventions. - Any technical solution of a problem in any field of human activity
which is new, involves an inventive step and is industrially applicable shall be patentable. It may be,
or may relate to, a product, or process, or an improvement of any of the foregoing. (Sec. 7, R. A. No.
165a)
Sec. 22. Non-Patentable Inventions. - The following shall be excluded from patent protection:
22.1. Discoveries, scientific theories and mathematical methods;
22.2. Schemes, rules and methods of performing mental acts, playing games or doing business, and
programs for computers;
22.3 Methods for treatment of the human or animal body by surgery or therapy and diagnostic
methods practiced on the human or animal body. This provision shall not apply to products and
composition for use in any of these methods;
22.4. Plant varieties or animal breeds or essentially biological process for the production of plants or
animals. This provision shall not apply to micro-organisms and non-biological and microbiological
processes.
Provisions under this subsection shall not preclude Congress to consider the enactment of a law
providing sui generis protection of plant varieties and animal breeds and a system of community
intellectual rights protection:
22.5. Aesthetic creations; and
22.6. Anything which is contrary to public order or morality. (Sec. 8, R. A. No. 165a)
Sec. 23. Novelty. - An invention shall not be considered new if it forms part of a prior art. (Sec. 9, R.
A. No. 165a)
Sec. 24. Prior Art. - Prior art shall consist of:
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24.1. Everything which has been made available to the public anywhere in the world, before the
filing date or the priority date of the application claiming the invention; and
24.2. The whole contents of an application for a patent, utility model, or industrial design
registration, published in accordance with this Act, filed or effective in the Philippines, with a filing
or priority date that is earlier than the filing or priority date of the application: Provided, That the
application which has validly claimed the filing date of an earlier application under Section 31 of
this Act, shall be prior art with effect as of the filing date of such earlier application: Provided
further, That the applicant or the inventor identified in both applications are not one and the
same. (Sec. 9, R. A. No. 165a)
Sec. 25. Non-Prejudicial Disclosure. 25.1. The disclosure of information contained in the application during the twelve (12) months
preceding the filing date or the priority date of the application shall not prejudice the applicant on the
ground of lack of novelty if such disclosure was made by:
(a) The inventor;
(b) A patent office and the information was contained (a) in another application filed by the inventor
and should not have been disclosed by the office, or (b) in an application filed without the
knowledge or consent of the inventor by a third party which obtained the information directly or
indirectly from the inventor; or
(c) A third party which obtained the information directly or indirectly from the inventor.
25.2. For the purposes of Subsection 25.1, "inventor" also means any person who, at the filing date
of application, had the right to the patent. (n)
Sec. 26. Inventive Step. - An invention involves an inventive step if, having regard to prior art, it is
not obvious to a person skilled in the art at the time of the filing date or priority date of the
application claiming the invention. (n)
Sec. 27. Industrial Applicability. - An invention that can be produced and used in any industry shall
be

industrially

applicable. (n)

Chapter III
RIGHT TO A PATENT
Sec. 28. Right to a Patent. - The right to a patent belongs to the inventor, his heirs, or assigns. When
two (2) or more persons have jointly made an invention, the right to a patent shall belong to them
75 | P a g e

jointly. (Sec. 10, R. A. No. 165a)


Sec. 29. First to File Rule. - If two (2) or more persons have made the invention separately and
independently of each other, the right to the patent shall belong to the person who filed an
application for such invention, or where two or more applications are filed for the same invention, to
the applicant who has the earliest filing date or, the earliest priority date. (3rd Sentence, Sec. 10, R.
A. No. 165a.)
Sec. 30. Inventions Created Pursuant to a Commission. 30.1. The person who commissions the work shall own the patent, unless otherwise provided in the
contract.
30.2. In case the employee made the invention in the course of his employment contract, the patent
shall belong to:
(a) The employee, if the inventive activity is not a part of his regular duties even if the employee
uses the time, facilities and materials of the employer.
(b) The employer, if the invention is the result of the performance of his regularly-assigned duties,
unless there is an agreement, express or implied, to the contrary. (n)
Sec. 31. Right of Priority. - An application for patent filed by any person who has previously applied
for the same invention in another country which by treaty, convention, or law affords similar
privileges to Filipino citizens, shall be considered as filed as of the date of filing the foreign
application: Provided, That: (a) the local application expressly claims priority; (b) it is filed within
twelve (12) months from the date the earliest foreign application was filed; and (c) a certified copy
of the foreign application together with an English translation is filed within six (6) months from the
date

of

filing

in

the

Philippines. (Sec.

15,

R.

A.

No.

Chapter IV
PATENT APPLICATION
Sec. 32. The Application. 32.1. The patent application shall be in Filipino or English and shall contain the following:
(a) A request for the grant of a patent;
(b) A description of the invention;
(c) Drawings necessary for the understanding of the invention;
(d) One or more claims; and
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165a)

(e) An abstract.
32.2. No patent may be granted unless the application identifies the inventor. If the applicant is not
the inventor, the Office may require him to submit said authority. (Sec. 13, R. A. No. 165a)
Sec. 33. Appointment of Agent or Representative. - An applicant who is not a resident of the
Philippines must appoint and maintain a resident agent or representative in the Philippines upon
whom notice or process for judicial or administrative procedure relating to the application for patent
or the patent may be served. (Sec. 11, R. A. No. 165a)
Sec. 34. The Request. - The request shall contain a petition for the grant of the patent, the name and
other data of the applicant, the inventor and the agent and the title of the invention. (n)
Sec. 35. Disclosure and Description of the Invention. 35.1. Disclosure. - The application shall disclose the invention in a manner sufficiently clear and
complete for it to be carried out by a person skilled in the art. Where the application concerns a
microbiological process or the product thereof and involves the use of a micro-organism which
cannot be sufficiently disclosed in the application in such a way as to enable the invention to be
carried out by a person skilled in the art, and such material is not available to the public, the
application shall be supplemented by a deposit of such material with an international depository
institution.
35.2. Description. - The Regulations shall prescribe the contents of the description and the order of
presentation. (Sec. 14, R. A. No. 165a)
Sec. 36. The Claims. 36.1. The application shall contain one (1) or more claims which shall define the matter for which
protection is sought. Each claim shall be clear and concise, and shall be supported by the description.
36.2. The Regulations shall prescribe the manner of the presentation of claims.(n)
Sec. 37. The Abstract. - The abstract shall consist of a concise summary of the disclosure of the
invention as contained in the description, claims and drawings in preferably not more than one
hundred fifty (150) words. It must be drafted in a way which allows the clear understanding of the
technical problem, the gist of the solution of that problem through the invention, and the principal
use or uses of the invention. The abstract shall merely serve for technical information.(n)
Sec. 38. Unity of Invention. 38.1. The application shall relate to one invention only or to a group of inventions forming a single
general inventive concept.
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38.2. If several independent inventions which do not form a single general inventive concept are
claimed in one application, the Director may require that the application be restricted to a single
invention. A later application filed for an invention divided out shall be considered as having been
filed on the same day as the first application: Provided, That the later application is filed within four
(4) months after the requirement to divide becomes final, or within such additional time, not
exceeding four (4) months, as may be granted: Provided further, That each divisional application
shall not go beyond the disclosure in the initial application.
38.3. The fact that a patent has been granted on an application that did not comply with the
requirement of unity of invention shall not be a ground to cancel the patent. (Sec. 17, R. A. No.
165a)
Sec. 39. Information Concerning Corresponding Foreign Application for Patents.- The applicant
shall, at the request of the Director, furnish him with the date and number of any application for a
patent filed by him abroad, hereafter referred to as the "foreign application," relating to the same or
essentially the same invention as that claimed in the application filed with the Office and other
documents

relating

to

the

foreign

application. (n)

Chapter V
PROCEDURE FOR GRANT OF PATENT
Sec. 40. Filing Date Requirements. 40.1. The filing date of a patent application shall be the date of receipt by the Office of at least the
following elements:
(a) An express or implicit indication that a Philippine patent is sought;
(b) Information identifying the applicant; and
(c) Description of the invention and one (1) or more claims in Filipino or English.
40.2. If any of these elements is not submitted within the period set by the Regulations, the
application shall be considered withdrawn. (n)
Sec. 41. According a Filing Date. - The Office shall examine whether the patent application satisfies
the requirements for the grant of date of filing as provided in Section 40 hereof. If the date of filing
cannot be accorded, the applicant shall be given an opportunity to correct the deficiencies in
accordance with the implementing Regulations. If the application does not contain all the elements
indicated in Section 40, the filing date should be that date when all the elements are received. If the
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deficiencies are not remedied within the prescribed time limit, the application shall be considered
withdrawn. (n)
Sec. 42. Formality Examination. 42.1. After the patent application has been accorded a filing date and the required fees have been
paid on time in accordance with the Regulations, the applicant shall comply with the formal
requirements specified by Section 32 and the Regulations within the prescribed period, otherwise the
application shall be considered withdrawn.
42.2. The Regulations shall determine the procedure for the re-examination and revival of an
application as well as the appeal to the Director of Patents from any final action by the
examiner. (Sec. 16, R. A. No. 165a)
Sec. 43. Classification and Search. - An application that has complied with the formal requirement
shall be classified and a search conducted to determine the prior art. (n)
Sec. 44. Publication of Patent Application. 44.1. The patent application shall be published in the IPO Gazette together with a search document
established by or on behalf of the Office citing any documents that reflect prior art, after the
expiration of eighteen (18) months from the filing date or priority date.
44.2. After publication of a patent application, any interested party may inspect the application
documents filed with the Office.
44.3. The Director General, subject to the approval of the Secretary of Trade and Industry, may
prohibit or restrict the publication of an application, if in his opinion, to do so would be prejudicial to
the national security and interests of the Republic of the Philippines. (n)
Sec. 45. Confidentiality Before Publication. - A patent application, which has not yet been published,
and all related documents, shall not be made available for inspection without the consent of the
applicant. (n)
Sec. 46. Rights Conferred by a Patent Application After Publication. - The applicant shall have all
the rights of a patentee under Section 76 against any person who, without his authorization,
exercised any of the rights conferred under Section 71 of this Act in relation to the invention claimed
in the published patent application, as if a patent had been granted for that invention: Provided, That
the said person had:
46.1. Actual knowledge that the invention that he was using was the subject matter of a published
application; or
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46.2. Received written notice that the invention that he was using was the subject matter of a
published application being identified in the said notice by its serial number: Provided, That the
action may not be filed until after the grant of a patent on the published application and within four
(4) years from the commission of the acts complained of. (n)
Sec. 47. Observation by Third Parties. - Following the publication of the patent application, any
person may present observations in writing concerning the patentability of the invention. Such
observations shall be communicated to the applicant who may comment on them. The Office shall
acknowledge and put such observations and comment in the file of the application to which it
relates.(n)
Sec. 48. Request for Substantive Examination. 48.1. The application shall be deemed withdrawn unless within six (6) months from the date of
publication under Section 41, a written request to determine whether a patent application meets the
requirements of Sections 21 to 27 and Sections 32 to 39 and the fees have been paid on time.
48.2. Withdrawal of the request for examination shall be irrevocable and shall not authorize the
refund of any fee. (n)
SEC. 49. Amendment of Application. - An applicant may amend the patent application during
examination: Provided, That such amendment shall not include new matter outside the scope of the
disclosure contained in the application as filed. (n)
Sec. 50. Grant of Patent. 50.1. If the application meets the requirements of this Act, the Office shall grant the
patent: Provided, That all the fees are paid on time.
50.2. If the required fees for grant and printing are not paid in due time, the application shall be
deemed to be withdrawn.
50.3. A patent shall take effect on the date of the publication of the grant of the patent in the IPO
Gazette. (Sec. 18, R. A. No. 165a)
Sec. 51. Refusal of the Application. 51.1. The final order of refusal of the examiner to grant the patent shall be appealable to the Director
in accordance with this Act.
51.2. The Regulations shall provide for the procedure by which an appeal from the order of refusal
from the Director shall be undertaken. (n)
Sec. 52. Publication Upon Grant of Patent. 80 | P a g e

52.1. The grant of the patent together with other related information shall be published in the IPO
Gazette within the time prescribed by the Regulations.
52.2. Any interested party may inspect the complete description, claims, and drawings of the patent
on file with the Office. (Sec. 18, R. A. No. 165a)
Sec. 53. Contents of Patent. - The patent shall be issued in the name of the Republic of the
Philippines under the seal of the Office and shall be signed by the Director, and registered together
with the description, claims, and drawings, if any, in books and records of the Office. (Secs. 19 and
20, R. A. No. 165a)
Sec. 54. Term of Patent. - The term of a patent shall be twenty (20) years from the filing date of the
application. (Sec. 21, R. A. No. 165a)
Sec. 55. Annual Fees. 55.1. To maintain the patent application or patent, an annual fee shall be paid upon the expiration of
four (4) years from the date the application was published pursuant to Section 44 hereof, and on each
subsequent anniversary of such date. Payment may be made within three (3) months before the due
date. The obligation to pay the annual fees shall terminate should the application be withdrawn,
refused, or cancelled.
55.2. If the annual fee is not paid, the patent application shall be deemed withdrawn or the patent
considered as lapsed from the day following the expiration of the period within which the annual
fees were due. A notice that the application is deemed withdrawn or the lapse of a patent for nonpayment of any annual fee shall be published in the IPO Gazette and the lapse shall be recorded in
the Register of the Office.
55.3. A grace period of six (6) months shall be granted for the payment of the annual fee, upon
payment of the prescribed surcharge for delayed payment.(Sec. 22, R. A. No. 165a)
Sec. 56. Surrender of Patent. 56.1. The owner of the patent, with the consent of all persons having grants or licenses or other right,
title or interest in and to the patent and the invention covered thereby, which have been recorded in
the Office, may surrender his patent or any claim or claims forming part thereof to the Office for
cancellation.
56.2 A person may give notice to the Office of his opposition to the surrender of a patent under this
section, and if he does so, the Bureau shall notify the proprietor of the patent and determine the
question.
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56.3. If the Office is satisfied that the patent may properly be surrendered, he may accept the offer
and, as from the day when notice of his acceptance is published in the IPO Gazette, the patent shall
cease to have effect, but no action for infringement shall lie and no right compensation shall accrue
for any use of the patented invention before that day for the services of the government. (Sec. 24, R.
A. No. 165a)
Sec. 57. Correction of Mistakes of the Office. - The Director shall have the power to correct, without
fee, any mistake in a patent incurred through the fault of the Office when clearly disclosed in the
records thereof, to make the patent conform to the records. (Sec. 25, R. A. No. 165)
Sec. 58. Correction of Mistake in the Application. - On request of any interested person and payment
of the prescribed fee, the Director is authorized to correct any mistake in a patent of a formal and
clerical nature, not incurred through the fault of the Office. (Sec. 26, R. A. No. 165a)
Sec. 59. Changes in Patents. 59.1. The owner of a patent shall have the right to request the Bureau to make the changes in the
patent in order to:
(a) Limit the extent of the protection conferred by it;
(b) Correct obvious mistakes or to correct clerical errors; and
(c) Correct mistakes or errors, other than those referred to in letter (b), made in good
faith: Provided, That where the change would result in a broadening of the extent of protection
conferred by the patent, no request may be made after the expiration of two (2) years from the grant
of a patent and the change shall not affect the rights of any third party which has relied on the patent,
as published.
59.2. No change in the patent shall be permitted under this section, where the change would result in
the disclosure contained in the patent going beyond the disclosure contained in the application filed.
59.3. If, and to the extent to which the Office changes the patent according to this section, it shall
publish the same. (n)
Sec. 60. Form and Publication of Amendment. - An amendment or correction of a patent shall be
accomplished by a certificate of such amendment or correction, authenticated by the seal of the
Office and signed by the Director, which certificate shall be attached to the patent. Notice of such
amendment or correction shall be published in the IPO Gazette and copies of the patent kept or
furnished by the Office shall include a copy of the certificate of amendment or correction. (Sec. 27,
R. A. No. 165)
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Chapter VI
CANCELLATION OF PATENTS
AND SUBSTITUTION OF PATENTEE
Sec. 61. Cancellation of Patents. 61.1. Any interested person may, upon payment of the required fee, petition to cancel the patent or
any claim thereof, or parts of the claim, on any of the following grounds:
(a) That what is claimed as the invention is not new or patentable;
(b) That the patent does not disclose the invention in a manner sufficiently clear and complete for it
to be carried out by any person skilled in the art; or
(c) That the patent is contrary to public order or morality.
61.2. Where the grounds for cancellation relate to some of the claims or parts of the claim,
cancellation may be effected to such extent only. (Secs. 28 and 29, R. A. No. 165a)
Sec. 62. Requirement of the Petition. - The petition for cancellation shall be in writing, verified by
the petitioner or by any person in his behalf who knows the facts, specify the grounds upon which it
is based, include a statement of the facts to be relied upon, and filed with the Office. Copies of
printed publications or of patents of other countries, and other supporting documents mentioned in
the petition shall be attached thereto, together with the translation thereof in English, if not in
English language. (Sec. 30, R. A. No. 165)
Sec. 63. Notice of Hearing. - Upon filing of a petition for cancellation, the Director of Legal Affairs
shall forthwith serve notice of the filing thereof upon the patentee and all persons having grants or
licenses, or any other right, title or interest in and to the patent and the invention covered thereby, as
appears of record in the Office, and of notice of the date of hearing thereon on such persons and the
petitioner. Notice of the filing of the petition shall be published in the IPO Gazette. (Sec. 31, R. A.
No. 165a)
Sec. 64. Committee of Three. - In cases involving highly technical issues, on motion of any party, the
Director of Legal Affairs may order that the petition be heard and decided by a committee composed
of the Director of Legal Affairs as chairman and two (2) members who have the experience or
expertise in the field of technology to which the patent sought to be cancelled relates. The decision
of the committee shall be appealable to the Director General. (n)
Sec. 65. Cancellation of the Patent. 65.1. If the Committee finds that a case for cancellation has been proved, it shall order the patent or
83 | P a g e

any specified claim or claims thereof cancelled.


65.2. If the Committee finds that, taking into consideration the amendment made by the patentee
during the cancellation proceedings, the patent and the invention to which it relates meet the
requirement of this Act, it may decide to maintain the patent as amended: Provided, That the fee for
printing of a new patent is paid within the time limit prescribed in the Regulations.
65.3. If the fee for the printing of a new patent is not paid in due time, the patent should be revoked.
65.4. If the patent is amended under Subsection 65.2 hereof, the Bureau shall, at the same time as it
publishes the mention of the cancellation decision, publish the abstract, representative claims and
drawings indicating clearly what the amendments consist of. (n)
Sec. 66. Effect of Cancellation of Patent or Claim. - The rights conferred by the patent or any
specified claim or claims cancelled shall terminate. Notice of the cancellation shall be published in
the IPO Gazette. Unless restrained by the Director General, the decision or order to cancel by
Director of Legal Affairs shall be immediately executory even pending appeal. (Sec. 32, R. A. No.
165a)
Chapter VII
REMEDIES OF A PERSON WITH A RIGHT TO A PATENT
Sec. 67. Patent Application by Persons Not Having the Right to a Patent. 67.1. If a person referred to in Section 29 other than the applicant, is declared by final court order or
decision as having the right to the patent, such person may, within three (3) months after the decision
has become final:
(a) Prosecute the application as his own application in place of the applicant;
(b) File a new patent application in respect of the same invention;
(c) Request that the application be refused; or
(d) Seek cancellation of the patent, if one has already been issued.
67.2. The provisions of Subsection 38.2 shall apply mutatis mutandis to a new application filed
under Subsection 67.1(b). (n)
Sec. 68. Remedies of the True and Actual Inventor. - If a person, who was deprived of the patent
without his consent or through fraud is declared by final court order or decision to be the true and
actual inventor, the court shall order for his substitution as patentee, or at the option of the true
inventor, cancel the patent, and award actual and other damages in his favor if warranted by the
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circumstances. (Sec. 33, R. A. No. 165a)


Sec. 69. Publication of the Court Order. - The court shall furnish the Office a copy of the order or
decision referred to in Sections 67 and 68, which shall be published in the IPO Gazette within three
(3) months from the date such order or decision became final and executory, and shall be recorded in
the register of the Office. (n)
Sec. 70. Time to File Action in Court. - The actions indicated in Sections 67 and 68 shall be filed
within one (1) year from the date of publication made in accordance with Sections 44 and 51,
respectively. (n)
Chapter VIII
RIGHTS OF PATENTEES AND INFRINGEMENT OF PATENTS
Sec. 71. Rights Conferred by Patent. 71.1. A patent shall confer on its owner the following exclusive rights:
(a) Where the subject matter of a patent is a product, to restrain, prohibit and prevent any
unauthorized person or entity from making, using, offering for sale, selling or importing that
product;
(b) Where the subject matter of a patent is a process, to restrain, prevent or prohibit any unauthorized
person or entity from using the process, and from manufacturing, dealing in, using, selling or
offering for sale, or importing any product obtained directly or indirectly from such process.
71.2. Patent owners shall also have the right to assign, or transfer by succession the patent, and to
conclude licensing contracts for the same. (Sec. 37, R. A. No. 165a)
Sec. 72. Limitations of Patent Rights. - The owner of a patent has no right to prevent third parties
from performing, without his authorization, the acts referred to in Section 71 hereof in the following
circumstances:
72.1 Using a patented product which has been put on the market in the Philippines by the owner of
the product, or with his express consent, insofar as such use is performed after that product has been
so put on the said market;
72.2. Where the act is done privately and on a non-commercial scale or for a non-commercial
purpose: Provided, That it does not significantly prejudice the economic interests of the owner of the
patent;
72.3. Where the act consists of making or using exclusively for the purpose of experiments that
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relate to the subject matter of the patented invention;


72.4. Where the act consists of the preparation for individual cases, in a pharmacy or by a medical
professional, of a medicine in accordance with a medical prescription or acts concerning the
medicine so prepared;
72.5. Where the invention is used in any ship, vessel, aircraft, or land vehicle of any other country
entering the territory of the Philippines temporarily or accidentally: Provided, That such invention is
used exclusively for the needs of the ship, vessel, aircraft, or land vehicle and not used for the
manufacturing of anything to be sold within the Philippines. (Secs. 38 and 39, R. A. No. 165a)
Sec. 73. Prior User. 73.1. Notwithstanding Section 72 hereof, any prior user, who, in good faith was using the invention
or has undertaken serious preparations to use the invention in his enterprise or business, before the
filing date or priority date of the application on which a patent is granted, shall have the right to
continue the use thereof as envisaged in such preparations within the territory where the patent
produces its effect.
73.2. The right of the prior user may only be transferred or assigned together with his enterprise or
business, or with that part of his enterprise or business in which the use or preparations for use have
been made. (Sec. 40, R. A. No. 165a)
Sec. 74. Use of Invention by Government. 74.1. A Government agency or third person authorized by the Government may exploit the invention
even without agreement of the patent owner where:
(a) the public interest, in particular, national security, nutrition, health or the development of other
sectors, as determined by the appropriate agency of the government, so requires; or
(b) A judicial or administrative body has determined that the manner of exploitation, by the owner of
the patent or his licensee, is anti-competitive.
74.2. The use by the Government, or third person authorized by the Government shall be subject,
mutatis mutandis, to the conditions set forth in Sections 95 to 97 and 100 to 102. (Sec. 41, R. A. No.
165a)
Sec. 75. Extent of Protection and Interpretation of Claims. 75.1. The extent of protection conferred by the patent shall be determined by the claims, which are to
be interpreted in the light of the description and drawings.
75.2. For the purpose of determining the extent of protection conferred by the patent, due account
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shall be taken of elements which are equivalent to the elements expressed in the claims, so that a
claim shall be considered to cover not only all the elements as expressed therein, but also
equivalents. (n)
Sec. 76. Civil Action for Infringement. 76.1. The making, using, offering for sale, selling, or importing a patented product or a product
obtained directly or indirectly from a patented process, or the use of a patented process without the
authorization of the patentee constitutes patent infringement.
76.2. Any patentee, or anyone possessing any right, title or interest in and to the patented invention,
whose rights have been infringed, may bring a civil action before a court of competent jurisdiction,
to recover from the infringer such damages sustained thereby, plus attorneys fees and other
expenses of litigation, and to secure an injunction for the protection of his rights.
76.3. If the damages are inadequate or cannot be readily ascertained with reasonable certainty, the
court may award by way of damages a sum equivalent to reasonable royalty.
76.4. The court may, according to the circumstances of the case, award damages in a sum above the
amount found as actual damages sustained:Provided, That the award does not exceed three (3) times
the amount of such actual damages.
76.5. The court may, in its discretion, order that the infringing goods, materials and implements
predominantly used in the infringement be disposed of outside the channels of commerce or
destroyed, without compensation.
76.6. Anyone who actively induces the infringement of a patent or provides the infringer with a
component of a patented product or of a product produced because of a patented process knowing it
to be especially adopted for infringing the patented invention and not suitable for substantial noninfringing use shall be liable as a contributory infringer and shall be jointly and severally liable with
the infringer. (Sec. 42, R. A. No. 165a)
Sec. 77. Infringement Action by a Foreign National. - Any foreign national or juridical entity who
meets the requirements of Section 3 and not engaged in business in the Philippines, to which a patent
has been granted or assigned under this Act, may bring an action for infringement of patent, whether
or not it is licensed to do business in the Philippines under existing law. (Sec. 41-A, R. A. No. 165a)
Sec. 78. Process Patents; Burden of Proof. - If the subject matter of a patent is a process for
obtaining a product, any identical product shall be presumed to have been obtained through the use
of the patented process if the product is new or there is substantial likelihood that the identical
87 | P a g e

product was made by the process and the owner of the patent has been unable despite reasonable
efforts, to determine the process actually used. In ordering the defendant to prove that the process to
obtain the identical product is different from the patented process, the court shall adopt measures to
protect, as far as practicable, his manufacturing and business secrets. (n)
Sec. 79. Limitation of Action for Damages. - No damages can be recovered for acts of infringement
committed more than four (4) years before the institution of the action for infringement. (Sec. 43, R.
A. No. 165)
Sec. 80. Damages; Requirement of Notice. - Damages cannot be recovered for acts of infringement
committed before the infringer had known; or had reasonable grounds to know of the patent. It is
presumed that the infringer had known of the patent if on the patented product, or on the container or
package in which the article is supplied to the public, or on the advertising material relating to the
patented product or process, are placed the words "Philippine Patent" with the number of the
patent. (Sec. 44, R. A. No. 165a)
Sec. 81. Defenses in Action for Infringement. - In an action for infringement, the defendant, in
addition to other defenses available to him, may show the invalidity of the patent, or any claim
thereof, on any of the grounds on which a petition of cancellation can be brought under Section 61
hereof. (Sec. 45, R. A. No. 165)
Sec. 82. Patent Found Invalid May be Cancelled. - In an action for infringement, if the court shall
find the patent or any claim to be invalid, it shall cancel the same, and the Director of Legal Affairs
upon receipt of the final judgment of cancellation by the court, shall record that fact in the register of
the Office and shall publish a notice to that effect in the IPO Gazette. (Sec. 46, R. A. No. 165a)
Sec. 83. Assessor in Infringement Action. 83.1. Two (2) or more assessors may be appointed by the court. The assessors shall be possessed of
the necessary scientific and technical knowledge required by the subject matter in litigation. Either
party may challenge the fitness of any assessor proposed for appointment.
83.2. Each assessor shall receive a compensation in an amount to be fixed by the court and advanced
by the complaining party, which shall be awarded as part of his costs should he prevail in the
action. (Sec. 47, R. A. No. 165a)
Sec. 84. Criminal Action for Repetition of Infringement. - If infringement is repeated by the infringer
or by anyone in connivance with him after finality of the judgment of the court against the infringer,
the offenders shall, without prejudice to the institution of a civil action for damages, be criminally
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liable therefor and, upon conviction, shall suffer imprisonment for the period of not less than six (6)
months but not more than three (3) years and/or a fine of not less than One hundred thousand pesos
(P100,000) but not more than Three hundred thousand pesos (P300,000), at the discretion of the
court. The criminal action herein provided shall prescribed in three (3) years from date of the
commission of the crime. (Sec. 48, R. A. No. 165a)
Chapter IX
Voluntary Licensing
Sec. 85. Voluntary License Contract. - To encourage the transfer and dissemination of technology,
prevent or control practices and conditions that may in particular cases constitute an abuse of
intellectual property rights having an adverse effect on competition and trade, all technology transfer
arrangements shall comply with the provisions of this Chapter. (n)
Sec. 86. Jurisdiction to Settle Disputes on Royalties. - The Director of the Documentation,
Information and Technology Transfer Bureau shall exercise quasi-judicial jurisdiction in the
settlement of disputes between parties to a technology transfer arrangement arising from technology
transfer payments, including the fixing of appropriate amount or rate of royalty. (n)
Sec. 87. Prohibited Clauses. - Except in cases under Section 91, the following provisions shall be
deemed prima facie to have an adverse on competition and trade:
87.1. Those which impose upon the licensee the obligation to acquire from a specific source capital
goods, intermediate products, raw materials, and other technologies, or of permanently employing
personnel indicated by the licensor;
87.2. Those pursuant to which the licensor reserves the right to fix the sale or resale prices of the
products manufactured on the basis of the license;
87.3. Those that contain restrictions regarding the volume and structure of production;
87.4 Those that prohibit the use of competitive technologies in a non-exclusive technology transfer
agreement;
87.5. Those that establish a full or partial purchase option in favor of the licensor;
87.6. Those that obligate the licensee to transfer for free to the licensor the inventions or
improvements that may be obtained through the use of the licensed technology;
87.7. Those that require payment of royalties to the owners of patents for patents which are not used;
87.8. Those that prohibit the licensee to export the licensed product unless justified for the protection
of the legitimate interest of the licensor such as exports to countries where exclusive licenses to
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manufacture and/or distribute the licensed product(s) have already been granted;
87.9. Those which restrict the use of the technology supplied after the expiration of the technology
transfer arrangement, except in cases of early termination of the technology transfer arrangement due
to reason(s) attributable to the licensee;
87.10. Those which require payments for patents and other industrial property rights after their
expiration, termination arrangement;
87.11. Those which require that the technology recipient shall not contest the validity of any of the
patents of the technology supplier;
87.12. Those which restrict the research and development activities of the licensee designed to
absorb and adapt the transferred technology to local conditions or to initiate research and
development programs in connection with new products, processes or equipment;
87.13. Those which prevent the licensee from adapting the imported technology to local conditions,
or introducing innovation to it, as long as it does not impair the quality standards prescribed by the
licensor;
87.14. Those which exempt the licensor for liability for non-fulfillment of his responsibilities under
the technology transfer arrangement and/or liability arising from third party suits brought about by
the use of the licensed product or the licensed technology; and
87.15. Other clauses with equivalent effects. (Sec. 33-C[2], R. A. 165a)
Sec. 88. Mandatory Provisions. - The following provisions shall be included in voluntary license
contracts:
88.1. That the laws of the Philippines shall govern the interpretation of the same and in the event of
litigation, the venue shall be the proper court in the place where the licensee has its principal office;
88.2. Continued access to improvements in techniques and processes related to the technology shall
be made available during the period of the technology transfer arrangement;
88.3. In the event the technology transfer arrangement shall provide for arbitration, the Procedure of
Arbitration of the Arbitration Law of the Philippines or the Arbitration Rules of the United Nations
Commission on International Trade Law (UNCITRAL) or the Rules of Conciliation and Arbitration
of the International Chamber of Commerce (ICC) shall apply and the venue of arbitration shall be
the Philippines or any neutral country; and
88.4. The Philippine taxes on all payments relating to the technology transfer arrangement shall be
borne by the licensor. (n)
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Sec. 89. Rights of Licensor. - In the absence of any provision to the contrary in the technology
transfer arrangement, the grant of a license shall not prevent the licensor from granting further
licenses to third person nor from exploiting the subject matter of the technology transfer arrangement
himself. (Sec. 33-B, R. A. 165a)
Sec. 90. Rights of Licensee. - The licensee shall be entitled to exploit the subject matter of the
technology transfer arrangement during the whole term of the technology transfer arrangement. (Sec.
33-C (1), R. A. 165a)
Sec. 91. Exceptional Cases. - In exceptional or meritorious cases where substantial benefits will
accrue to the economy, such as high technology content, increase in foreign exchange earnings,
employment generation, regional dispersal of industries and/or substitution with or use of local raw
materials, or in the case of Board of Investments, registered companies with pioneer status,
exemption from any of the above requirements may be allowed by the Documentation, Information
and Technology Transfer Bureau after evaluation thereof on a case by case basis. (n)
Sec. 92. Non-Registration with the Documentation, Information and Technology Transfer Bureau. Technology transfer arrangements that conform with the provisions of Sections 86 and 87 need not
be registered with the Documentation, Information and Technology Transfer Bureau. Nonconformance with any of the provisions of Sections 87 and 88, however, shall automatically render
the technology transfer arrangement unenforceable, unless said technology transfer arrangement is
approved and registered with the Documentation, Information and Technology Transfer Bureau
under the provisions of Section 91 on exceptional cases. (n)
Chapter X
COMPULSORY LICENSING
Sec. 93. Grounds for Compulsory Licensing. - The Director of Legal Affairs may grant a license to
exploit a patented invention, even without the agreement of the patent owner, in favor of any person
who has shown his capability to exploit the invention, under any of the following circumstances:
93.1. National emergency or other circumstances of extreme urgency;
93.2. Where the public interest, in particular, national security, nutrition, health or the development
of other vital sectors of the national economy as determined by the appropriate agency of the
Government, so requires; or
93.3. Where a judicial or administrative body has determined that the manner of exploitation by the
owner of the patent or his licensee is anti-competitive; or
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93.4. In case of public non-commercial use of the patent by the patentee, without satisfactory reason;
93.5. If the patented invention is not being worked in the Philippines on a commercial scale,
although capable of being worked, without satisfactory reason: Provided, That the importation of the
patented article shall constitute working or using the patent. (Secs. 34, 34-A, and 34-B, R. A. No.
165a)
Sec. 94. Period for Filing a Petition for a Compulsory License. 94.1. A compulsory license may not be applied for on the ground stated in Subsection 93.5 before the
expiration of a period of four (4) years from the date of filing of the application or three (3) years
from the date of the patent whichever period expires last.
94.2. A compulsory license which is applied for on any of the grounds stated in Subsections 93.2,
93.3, and 93.4 and Section 97 may be applied for at any time after the grant of the patent. (Sec.
34[1], R. A. No. 165)
Sec. 95. Requirement to Obtain a License on Reasonable Commercial Terms. 95.1. The license will only be granted after the petitioner has made efforts to obtain authorization
from the patent owner on reasonable commercial terms and conditions but such efforts have not been
successful within a reasonable period of time.
95.2. The requirement under Subsection 95.1 shall not apply in the following cases:
(a) Where the petition for compulsory license seeks to remedy a practice determined after judicial or
administrative process to be anti-competitive;
(b) In situations of national emergency or other circumstances of extreme urgency;
(c) In cases of public non-commercial use.
95.3. In situations of national emergency or other circumstances of extreme urgency, the right holder
shall be notified as soon as reasonably practicable.
95.4. In the case of public non-commercial use, where the government or contractor, without making
a patent search, knows or has demonstrable grounds to know that a valid patent is or will be used by
or for the government, the right holder shall be informed promptly. (n)
Sec. 96. Compulsory Licensing of Patents Involving Semi-Conductor Technology. - In the case of
compulsory licensing of patents involving semi-conductor technology, the license may only be
granted in case of public non-commercial use or to remedy a practice determined after judicial or
administrative process to be anti-competitive. (n)
Sec. 97. Compulsory License Based on Interdependence of Patents. - If the invention protected by a
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patent, hereafter referred to as the "second patent," within the country cannot be worked without
infringing another patent, hereafter referred to as the "first patent," granted on a prior application or
benefiting from an earlier priority, a compulsory license may be granted to the owner of the second
patent to the extent necessary for the working of his invention, subject to the following conditions:
97.1. The invention claimed in the second patent involves an important technical advance of
considerable economic significance in relation to the first patent;
97.2. The owner of the first patent shall be entitled to a cross-license on reasonable terms to use the
invention claimed in the second patent;
97.3. The use authorized in respect of the first patent shall be non-assignable except with the
assignment of the second patent; and
97.4. The terms and conditions of Sections 95, 96 and 98 to 100 of this Act.(Sec. 34-C, R. A. No.
165a)
Sec. 98. Form and Contents of Petition. - The petition for compulsory licensing must be in writing,
verified by the petitioner and accompanied by payment of the required filing fee. It shall contain the
name and address of the petitioner as well as those of the respondents, the number and date of issue
of the patent in connection with which compulsory license is sought, the name of the patentee, the
title of the invention, the statutory grounds upon which compulsory license is sought, the ultimate
facts constituting the petitioner's cause of action, and the relief prayed for. (Sec. 34-D, R. A. No.
165)
Sec. 99. Notice of Hearing. 99.1. Upon filing of a petition, the Director of Legal Affairs shall forthwith serve notice of the filing
thereof upon the patent owner and all persons having grants or licenses, or any other right, title or
interest in and to the patent and invention covered thereby as appears of record in the Office, and of
notice of the date of hearing thereon, on such persons and petitioner. The resident agent or
representative appointed in accordance with Section 33 hereof, shall be bound to accept service of
notice of the filing of the petition within the meaning of this Section.
99.2. In every case, the notice shall be published by the said Office in a newspaper of general
circulation, once a week for three (3) consecutive weeks and once in the IPO Gazette at applicants
expense. (Sec. 34-E, R. A. No. 165)
Sec. 100. Terms and Conditions of Compulsory License. - The basic terms and conditions including
the rate of royalties of a compulsory license shall be fixed by the Director of Legal Affairs subject to
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the following conditions:


100.1. The scope and duration of such license shall be limited to the purpose for which it was
authorized;
100.2. The license shall be non-exclusive;
100.3. The license shall be non-assignable, except with that part of the enterprise or business with
which the invention is being exploited;
100.4. Use of the subject matter of the license shall be devoted predominantly for the supply of the
Philippine market: Provided, That this limitation shall not apply where the grant of the license is
based on the ground that the patentees manner of exploiting the patent is determined by judicial or
administrative process, to be anti-competitive.
100.5. The license may be terminated upon proper showing that circumstances which led to its grant
have ceased to exist and are unlikely to recur: Provided, That adequate protection shall be afforded
to the legitimate interest of the licensee; and
100.6. The patentee shall be paid adequate remuneration taking into account the economic value of
the grant or authorization, except that in cases where the license was granted to remedy a practice
which was determined after judicial or administrative process, to be anti-competitive, the need to
correct the anti-competitive practice may be taken into account in fixing the amount of
remuneration. (Sec. 35-B, R. A. No. 165a)
Sec. 101. Amendment, Cancellation, Surrender of Compulsory License.
101.1. Upon the request of the patentee or the licensee, the Director of Legal Affairs may amend the
decision granting the compulsory license, upon proper showing of new facts or circumstances
justifying such amendment.
101.2. Upon the request of the patentee, the said Director may cancel the compulsory license:
(a) If the ground for the grant of the compulsory license no longer exists and is unlikely to recur;
(b) If the licensee has neither begun to supply the domestic market nor made serious preparation
therefor;
(c) If the licensee has not complied with the prescribed terms of the license;
101.3. The licensee may surrender the license by a written declaration submitted to the Office.
101.4. The said Director shall cause the amendment, surrender, or cancellation in the Register, notify
the patentee, and/or the licensee, and cause notice thereof to be published in the IPO Gazette. (Sec.
35-D, R. A. No. 165a)
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Sec. 102. Licensees Exemption from Liability. - Any person who works a patented product,
substance and/or process under a license granted under this Chapter, shall be free from any liability
for infringement: Provided however,That in the case of voluntary licensing, no collusion with the
licensor is proven. This is without prejudice to the right of the rightful owner of the patent to recover
from the licensor whatever he may have received as royalties under the license. (Sec. 35-E, R. A.
No.

165a)
Chapter XI
ASSIGNMENT AND TRANSMISSION OF RIGHTS

Sec. 103. Transmission of Rights. 103.1 Patents or applications for patents and invention to which they relate, shall be protected in the
same way as the rights of other property under the Civil Code.
103.2. Inventions and any right, title or interest in and to patents and inventions covered thereby,
may be assigned or transmitted by inheritance or bequest or may be the subject of a license
contract. (Sec. 50, R. A. No. 165a)
Sec. 104. Assignment of Inventions. - An assignment may be of the entire right, title or interest in and
to the patent and the invention covered thereby, or of an undivided share of the entire patent and
invention, in which event the parties become joint owners thereof. An assignment may be limited to
a specified territory. (Sec. 51, R. A. No. 165)
Sec. 105. Form of Assignment. - The assignment must be in writing, acknowledged before a notary
public or other officer authorized to administer oath or perform notarial acts, and certified under the
hand and official seal of the notary or such other officer. (Sec. 52, R. A. No. 165)
Sec. 106. Recording. 106.1. The Office shall record assignments, licenses and other instruments relating to the
transmission of any right, title or interest in and to inventions, and patents or application for patents
or inventions to which they relate, which are presented in due form to the Office for registration, in
books and records kept for the purpose. The original documents together with a signed duplicate
thereof shall be filed, and the contents thereof should be kept confidential. If the original is not
available, an authenticated copy thereof in duplicate may be filed. Upon recording, the Office shall
retain the duplicate, return the original or the authenticated copy to the party who filed the same and
notice of the recording shall be published in the IPO Gazette.
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106.2. Such instruments shall be void as against any subsequent purchaser or mortgagee for valuable
consideration and without notice, unless, it is so recorded in the Office, within three (3) months from
the date of said instrument, or prior to the subsequent purchase or mortgage. (Sec. 53, R. A. No.
165a)
Sec. 107. Rights of Joint Owners. - If two (2) or more persons jointly own a patent and the invention
covered thereby, either by the issuance of the patent in their joint favor or by reason of the
assignment of an undivided share in the patent and invention or by reason of the succession in title to
such share, each of the joint owners shall be entitled to personally make, use, sell, or import the
invention for his own profit: Provided, however, That neither of the joint owners shall be entitled to
grant licenses or to assign his right, title or interest or part thereof without the consent of the other
owner or owners, or without proportionally dividing the proceeds with such other owner or
owners. (Sec.

54,

R.

A.

No.

165)

Chapter XII
REGISTRATION OF UTILITY MODELS
Sec. 108. Applicability of Provisions Relating to Patents. 108.1. Subject to Section 109, the provisions governing patents shall apply, mutatis mutandis, to the
registration of utility models.
108.2. Where the right to a patent conflicts with the right to a utility model registration in the case
referred to in Section 29, the said provision shall apply as if the word patent were replaced by the
words "patent or utility model registration." (Sec. 55, R. A. No. 165a)
Sec. 109. Special Provisions Relating to Utility Models. 109.1 (a) An invention qualifies for registration as a utility model if it is new and industrially
applicable.
(b) Section 21, "Patentable Inventions", shall apply except the reference to inventive step as a
condition of protection.
109.2. Sections 43 to 49 shall not apply in the case of applications for registration of a utility model.
109.3. A utility model registration shall expire, without any possibility of renewal, at the end of the
seventh year after the date of the filing of the application.
109.4. In proceedings under Sections 61 to 64, the utility model registration shall be canceled on the
following grounds:
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(a) That the claimed invention does not qualify for registration as a utility model and does not meet
the requirements of registrability, in particular having regard to Subsection 109.1 and Sections 22,
23, 24 and 27;
(b) That the description and the claims do not comply with the prescribed requirements;
(c) That any drawing which is necessary for the understanding of the invention has not been
furnished;
(d) That the owner of the utility model registration is not the inventor or his successor in title. (Secs.
55, 56, and 57, R. A. No. 165a)
Sec. 110. Conversion of Patent Applications or Applications for Utility Model Registration. 110.1. At any time before the grant or refusal of a patent, an applicant for a patent may, upon
payment of the prescribed fee, convert his application into an application for registration of a utility
model, which shall be accorded the filing date of the initial application. An application may be
converted only once.
110.2. At any time before the grant or refusal of a utility model registration, an applicant for a utility
model registration may, upon payment of the prescribed fee, convert his application into a patent
application, which shall be accorded the filing date of the initial application. (Sec. 58, R. A. No.
165a)
Sec. 111. Prohibition against Filing of Parallel Applications. - An applicant may not file two (2)_
applications for the same subject, one for utility model registration and the other for the grant of a
patent whether simultaneously or consecutively. (Sec. 59, R. A. No. 165a)
Chapter XIII
Industrial Design and Layout Designs (Topographies) of Integrated Circuits
(Note: This entire Chapter was amended by Republic Act No. 9150 which was approved on August
06, 2001)
Sec. 112. Definition of Terms:
1. An Industrial Design is any composition of lines or colors or any three-dimensional form, whether
or not associated with lines or colors: Provided, That such composition or form gives a special
appearance to and can serve as pattern for an industrial product or handicraft;
2. Integrated Circuit means a product, in its final form, or an intermediate form, in which the
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elements, at least one of which is an active element and some or all of the interconnections are
integrally formed in and/or on a piece of material, and which is intended to perform an electronic
function; and
3. Layout-Design is synonymous with 'Topography' and means the three-dimensional disposition,
however expressed, of the elements, at least one of which is an active element, and of some or all of
the interconnections of an integrated circuit, or such a three-dimensional disposition prepared for an
integrated circuit intended for manufacture. chanrobles virtual law library
Sec. 113. Substantive Conditions/or Protection.- 113.1. Only industrial designs that are new or
ornamental shall benefit from protection under this Act.
113.2. Industrial designs dictated essentially by technical or functional considerations to obtain
a technical result or those that are contrary to public order, health or morals shall not be
protected.
113.3. Only layout -designs of integrated circuits that are original shall benefit from protection
under this Act. A layout-design shall be considered original if it is the result of its creator's
own intellectual effort and is not commonplace among creators of layout-designs and
manufacturers of integrated circuits at the time of its creation.
113.4. A layout-design consisting of a combination of elements and interconnections that are
commonplace shall be protected only if the combination, taken as a whole, is original.
Sec. 114. Contents of the Application. - 114.1. Every application for registration of an industrial
design or layout-design shall contain:
(a) A request for registration of the industrial design or layout-design;
(b) Information identifying the applicant;
(c) An indication of the kind of article of manufacture or handicraft to which the industrial design or
layout-design shall be applied;
(d) A representation of the article of manufacture or handicraft by way of drawings, photographs or
adequate graphic representation of the industrial design or of the layout-design as applied to the
article of manufacture or handicraft which clearly and fully discloses those features for which
protection is claimed; and chanrobles virtual law library
(e) The name and address of the creator, or where the applicant is not the creator, a statement
indicating the origin of the right to the industrial design or layout-design registration.
114.2. The application may be accompanied by a specimen of the article embodying the industrial
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design or layout-design and shall be subject to the payment of the prescribed fee.
Sec. 116. Examination. - 116.1. The Office shall accord as the filing date the date of receipt of the
application containing indications allowing the identity of the applicant to be established and a
representation of the article embodying the industrial design or the layout -design or a pictorial
representation thereof.
116.2. If the application does not meet these requirements, the filing date should be that date when
all the elements specified in Sec. 114 are filed or the mistakes corrected. Otherwise, if the
requirements are not complied within the prescribed period, the application shall be considered
withdrawn.
116.3. After the application has been accorded a filing date and the required fees paid on time, the
applicant shall comply with the requirements of Sec. 114 within the prescribed period, otherwise the
application shall be considered withdrawn.
116.4. The Office shall examine whether the industrial design or layout-design complies with
requirements of Sec. 112 (Definitions) and Sec. 113 (Substantive Conditions for Protection).
Sec. 117, Registration. - 117.1. Where the Office finds that the conditions referred to in Sec. 113 are
fulfilled, it shall order that registration be effected in the industrial design or layout-design register
and cause the issuance of an industrial design or layout-design certificate of registration; otherwise,
it shall refuse the application.
117.2. The form and contents of an industrial design or layout-design certificate shall be established
by the Registrations: Provided, That the name and address of the creator shall be mentioned in every
case.
117.3. Registration shall be published in the form and within the period fixed by the Regulations.
117.4. The Office shall record in the register any change in the identity of the proprietor of the
industrial design or layout design or his representative, if proof thereof is furnished to it. A fee shall
be paid, with the request to record the change in the identity of the proprietor, if the fee is not paid,
the request shall be deemed not to have been filed. In such case, the former proprietor and the former
representative shall remain subject to the rights and obligations as provided in this Act.
117.5. Anyone may inspect the Register and the files of registered industrial designs or layoutdesigns including files of cancellation proceedings. chanrobles virtual law library
Sec. 118. The Term of Industrial Design or Layout-Design Registration. - 118.1. The registration of
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an industrial design shall be for a period of five (5) years from the filing date of the application.
118.2. The registration of an industrial design may be renewed for not more than two (2)
consecutive periods of five (5) years each, by paying the renewal fee.
118.3. The renewal fee shall be paid within twelve (12) months preceding the expiration of the
period of registration. However, a grace period of six (6) months shall be granted for payment of the
fees after such expiration, upon payment of a surcharge.
118.4. The Regulations shall fix the amount of renewal fee, the surcharge and other requirements
regarding the recording of renewals of registration.
118.5. Registration of a layout-design shall be valid for a period often (10) years, without renewal,
and such validity to be counted from the date of commencement of the protection accorded to the
layout-design. The protection of a layout-design under this Act shall commence:
a) on the date of the first commercial exploitation, anywhere in the world, of the layout-design by or
with the consent of the right holder: Provided, That an application for registration is filed with the
Intellectual Property Office within two (2) years from such date of first commercial exploitation; or
b) on the filing date accorded to the application for the registration of the layout-design if the layoutdesign has not been previously exploited commercially anywhere in the world.
Sec. 119. Application of Other Sections and Chapters. - 119.1. The following provisions relating to
patents shall apply mutatis mutandis to an industrial design registration.
SECTION 21. - Novelty;
SECTION 24 - Prior art: Provided, That the disclosure is contained in printed documents or in any
tangible form;
SECTION 25 - Non prejudicial Disclosure;
SECTION 28 - Right to a Patent;
SECTION 29 - First to File Rule;
SECTION 30 - Inventions Created Pursuant to a Commission;
SECTION 31 - Right of Priority: Provided, That the application for industrial design shall be filed
within six (6) months from the earliest filing date of the corresponding foreign application;
SECTION 33 - Appointment of Agent or Representative;
SECTION 51 - Refusal of the Application; chanrobles virtual law library
SECTION 56 to 60 - Surrender, Correction of and Changes in Patent;
CHAPTER VII - Remedies of a Person with a Right to Patent;
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CHAPTER VIII - Rights of Patentees and Infringement of Patents; and


CHAPTER XI - Assignment and Transmission of Rights
119.2. If the essential elements of an industrial design which is the subject of an application have
been obtained from the creation of another person without his consent, protection under this Chapter
cannot be invoked against the injured party.
119.3. The following provisions relating to patents shall apply mutatis mutandisto a layout -design of
integrated circuits registration:
SECTION 28 - Right to a Patent;
SECTION 29 - First to File Rule;
SECTION 30 - Inventions Created Pursuant to a Commission;
SECTION 33 - Appointment of Agent or Representative;
SECTION 56 - Surrender of Patent;
SECTION 57 - Correction of Mistakes of the Office;
SECTION 58 - Correction of Mistakes in the Application;
SECTION 59 - Changes in Patents;
SECTION 60 - Form and Publication of Amendment;
CHAPTER VII - Remedies of a Person with a Right to Patent;
CHAPTER VIII - Rights of Patentees and Infringement of Patents: Provided, That the layout-design
rights and limitation of layout-design rights provided hereunder shall govern:
CHAPTER X - Compulsory Licensing; chanrobles virtual law library
CHAPTER XI - Assignment and Transmission of Rights
119.4. Rights Conferred to the Owner of a Layout-Design Registration. - The owner of a layoutdesign registration shall enjoy the following rights:
(1) to reproduce, whether by incorporation in an integrated circuit or otherwise, the registered
layout-design in its entirety or any part thereof, except the act of reproducing any part that does not
comply with the requirement of originality; and
(2) to sell or otherwise distribute for commercial purposes the registered layout design, an article or
an integrated circuit in which the registered layout-design is incorporated.
119.5. Limitations of Layout Rights. - The owner of a layout design has no right to prevent third
parties from reproducing, selling or otherwise distributing for commercial purposes the registered
layout-design in the following circumstances:
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(1) Reproduction of the registered layout-design for private purposes or for the sole purpose of
evaluation, analysis, research or teaching;
(2) Where the act is performed in respect of a layout-design created on the basis of such analysis or
evaluation and which is itself original in the meaning as provided herein;
(3) Where the act is performed in respect of a registered lay-out-design, or in respect of an integrated
circuit in which such a layout-design is incorporated, that has been put on the market by or with the
consent of the right holder;
(4) In respect of an integrated circuit where the person performing or ordering such an act did not
know and had no reasonable ground to know when acquiring the integrated circuit or the article
incorporating such an integrated circuit, that it incorporated an unlawfully reproduced layoutdesign: Provided, however, That after the time that such person has received sufficient notice that the
layout-design was unlawfully reproduced, that person may perform any of the said acts only with
respect to the stock on hand or ordered before such time and shall be liable to pay to the right holder
a sum equivalent to at least 5% of net sales or such other reasonable royalty as would be payable
under a freely negotiated license in respect of such layout-design; or chanrobles virtual law library
(5) Where the act is performed in respect of an identical layout-design which is original and has been
created independently by a third party.
Sec. 120. Cancellation of Design Registration. - 120.1. At any time during the term of the industrial
design registration, any person upon payment of the required fee, may petition the Director of Legal
Affairs to cancel the industrial design on any of the following grounds:
(a) If the subject matter of the industrial design is not registerable within the terms of Sections 112
and 113;
(b) If the subject matter is not new; or
(c) If the subject matter of the industrial design extends beyond the content of the application as
originally filed.
120.2. Where the grounds for cancellation relate to a part of the industrial design, cancellation may
be effected to such extent only. The restriction may be effected in the form of an alteration of the
effected features of the design.
120.3. Grounds for Cancellation of Layout-Design of Integrated Circuits.- Any interested person
may petition that the registration of a layout-design be canceled on the ground that:
(i) the layout-design is not protectable under this Act;
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(ii) the right holder is not entitled to protection under this Act; or
(iii) where the application for registration of the layout-design, was not filed within two (2) years
from its first commercial exploitation anywhere in the world.
Where the grounds for cancellation are established with respect only to a part of the layout-design,
only the corresponding part of the registration shall be canceled.

Any canceled layout-design registration or part thereof, shall be regarded as null and void from the
beginning and may be expunged from the records of the Intellectual Property Office. Reference to all
canceled

layout-design

registration

shall

be

published

in

the

IPO

Gazette.

PART III
THE LAW ON TRADEMARKS, SERVICE MARKS
AND TRADE NAMES
Sec. 121. Definitions. - As used in Part III, the following terms have the following meanings:
121.1. "Mark" means any visible sign capable of distinguishing the goods (trademark) or services
(service mark) of an enterprise and shall include a stamped or marked container of goods; (Sec. 38,
R. A. No. 166a)
121.2. "Collective mark" means any visible sign designated as such in the application for registration
and capable of distinguishing the origin or any other common characteristic, including the quality of
goods or services of different enterprises which use the sign under the control of the registered
owner of the collective mark; (Sec. 40, R. A. No. 166a)
121.3. "Trade name" means the name or designation identifying or distinguishing an
enterprise; (Sec. 38, R. A. No. 166a)
121.4. "Bureau" means the Bureau of Trademarks;
121.5. "Director" means the Director of Trademarks;
121.6. "Regulations" means the Rules of Practice in Trademarks and Service Marks formulated by
the Director of Trademarks and approved by the Director General; and
121.7. "Examiner" means the trademark examiner. (Sec. 38, R. A. No. 166a)
Sec. 122. How Marks are Acquired. - The rights in a mark shall be acquired through registration
made validly in accordance with the provisions of this law.(Sec. 2-A, R. A. No. 166a)
Sec. 123. Registrability. 103 | P a g e

123.1. A mark cannot be registered if it:


(a) Consists of immoral, deceptive or scandalous matter, or matter which may disparage or falsely
suggest a connection with persons, living or dead, institutions, beliefs, or national symbols, or bring
them into contempt or disrepute;
(b) Consists of the flag or coat of arms or other insignia of the Philippines or any of its political
subdivisions, or of any foreign nation, or any simulation thereof;
(c) Consists of a name, portrait or signature identifying a particular living individual except by his
written consent, or the name, signature, or portrait of a deceased President of the Philippines, during
the life of his widow, if any, except by written consent of the widow;
(d) Is identical with a registered mark belonging to a different proprietor or a mark with an earlier
filing or priority date, in respect of:
(i) The same goods or services, or
(ii) Closely related goods or services, or
(iii) If it nearly resembles such a mark as to be likely to deceive or cause confusion;
(e) Is identical with, or confusingly similar to, or constitutes a translation of a mark which is
considered by the competent authority of the Philippines to be well-known internationally and in the
Philippines, whether or not it is registered here, as being already the mark of a person other than the
applicant for registration, and used for identical or similar goods or services: Provided, That in
determining whether a mark is well-known, account shall be taken of the knowledge of the relevant
sector of the public, rather than of the public at large, including knowledge in the Philippines which
has been obtained as a result of the promotion of the mark;
(f) Is identical with, or confusingly similar to, or constitutes a translation of a mark considered wellknown in accordance with the preceding paragraph, which is registered in the Philippines with
respect to goods or services which are not similar to those with respect to which registration is
applied for: Provided, That use of the mark in relation to those goods or services would indicate a
connection between those goods or services, and the owner of the registered mark: Provided
further, That the interests of the owner of the registered mark are likely to be damaged by such use;
(g) Is likely to mislead the public, particularly as to the nature, quality, characteristics or
geographical origin of the goods or services;
(h) Consists exclusively of signs that are generic for the goods or services that they seek to identify;
(i) Consists exclusively of signs or of indications that have become customary or usual to designate
104 | P a g e

the goods or services in everyday language or in bona fide and established trade practice;
(j) Consists exclusively of signs or of indications that may serve in trade to designate the kind,
quality, quantity, intended purpose, value, geographical origin, time or production of the goods or
rendering of the services, or other characteristics of the goods or services;
(k) Consists of shapes that may be necessitated by technical factors or by the nature of the goods
themselves or factors that affect their intrinsic value;
(l) Consists of color alone, unless defined by a given form; or
(m) Is contrary to public order or morality.
123.2. As regards signs or devices mentioned in paragraphs (j), (k), and (l), nothing shall prevent the
registration of any such sign or device which has become distinctive in relation to the goods for
which registration is requested as a result of the use that have been made of it in commerce in the
Philippines. The Office may accept as prima facie evidence that the mark has become distinctive, as
used in connection with the applicants goods or services in commerce, proof of substantially
exclusive and continuous use thereof by the applicant in commerce in the Philippines for five (5)
years before the date on which the claim of distinctiveness is made.
123.3. The nature of the goods to which the mark is applied will not constitute an obstacle to
registration. (Sec. 4, R. A. No. 166a)
Sec. 124. Requirements of Application. 124.1. The application for the registration of the mark shall be in Filipino or in English and shall
contain the following:
(a) A request for registration;
(b) The name and address of the applicant;
(c) The name of a State of which the applicant is a national or where he has domicile; and the name
of a State in which the applicant has a real and effective industrial or commercial establishment, if
any;
(d) Where the applicant is a juridical entity, the law under which it is organized and existing;
(e) The appointment of an agent or representative, if the applicant is not domiciled in the Philippines;
(f) Where the applicant claims the priority of an earlier application, an indication of:
(i) The name of the State with whose national office the earlier application was filed or it filed with
an office other than a national office, the name of that office,
(ii) The date on which the earlier application was filed, and
105 | P a g e

(iii) Where available, the application number of the earlier application;


(g) Where the applicant claims color as a distinctive feature of the mark, a statement to that effect as
well as the name or names of the color or colors claimed and an indication, in respect of each color,
of the principal parts of the mark which are in that color;
(h) Where the mark is a three-dimensional mark, a statement to that effect;
(i) One or more reproductions of the mark, as prescribed in the Regulations;
(j) A transliteration or translation of the mark or of some parts of the mark, as prescribed in the
Regulations;
(k) The names of the goods or services for which the registration is sought, grouped according to the
classes of the Nice Classification, together with the number of the class of the said Classification to
which each group of goods or services belongs; and
(l) A signature by, or other self-identification of, the applicant or his representative.
124.2. The applicant or the registrant shall file a declaration of actual use of the mark with evidence
to that effect, as prescribed by the Regulations within three (3) years from the filing date of the
application. Otherwise, the application shall be refused or the mark shall be removed from the
Register by the Director.
124.3. One (1) application may relate to several goods and/or services, whether they belong to one
(1) class or to several classes of the Nice Classification.
124.4. If during the examination of the application, the Office finds factual basis to reasonably doubt
the veracity of any indication or element in the application, it may require the applicant to submit
sufficient evidence to remove the doubt.(Sec. 5, R. A. No. 166a)
Sec. 125. Representation; Address for Service. - If the applicant is not domiciled or has no real and
effective commercial establishment in the Philippines, he shall designate by a written document filed
in the office, the name and address of a Philippine resident who may be served notices or process in
proceedings affecting the mark. Such notices or services may be served upon the person so
designated by leaving a copy thereof at the address specified in the last designation filed. If the
person so designated cannot be found at the address given in the last designation, such notice or
process may be served upon the Director. (Sec. 3, R. A. No. 166a)
Sec. 126. Disclaimers.- The Office may allow or require the applicant to disclaim an unregistrable
component of an otherwise registrable mark but such disclaimer shall not prejudice or affect the
applicants or owners rights then existing or thereafter arising in the disclaimed matter, nor such
106 | P a g e

shall disclaimer prejudice or affect the applicants or owners right on another application of later
date if the disclaimed matter became distinctive of the applicants or owners goods, business or
services. (Sec. 13, R. A. No. 166a)
Sec. 127. Filing Date. 127.1. Requirements. - The filing date of an application shall be the date on which the Office
received the following indications and elements in English or Filipino:
(a) An express or implicit indication that the registration of a mark is sought;
(b) The identity of the applicant;
(c) Indications sufficient to contact the applicant or his representative, if any;
(d) A reproduction of the mark whose registration is sought; and
(e) The list of the goods or services for which the registration is sought.
127.2 No filing date shall be accorded until the required fee is paid. (n)
Sec. 128. Single Registration for Goods and/or Services. - Where goods and/or services belonging to
several classes of the Nice Classification have been included in one (1) application, such an
application shall result in one registration. (n)
Sec. 129. Division of Application. - Any application referring to several goods or services, hereafter
referred to as the "initial application," may be divided by the applicant into two (2) or more
applications, hereafter referred to as the"divisional applications," by distributing among the latter the
goods or services referred to in the initial application. The divisional applications shall preserve the
filing date of the initial application or the benefit of the right of priority. (n)
Sec. 130. Signature and Other Means of Self-Identification. 130.1. Where a signature is required, the Office shall accept:
(a) A hand-written signature; or
(b) The use of other forms of signature, such as a printed or stamped signature, or the use of a seal,
instead of a hand-written signature: Provided, That where a seal is used, it should be accompanied by
an indication in letters of the name of the signatory.
130.2. The Office shall accept communications to it by telecopier, or by electronic means subject to
the conditions or requirements that will be prescribed by the Regulations. When communications are
made by telefacsimile, the reproduction of the signature, or the reproduction of the seal together
with, where required, the indication in letters of the name of the natural person whose seal is used,
appears. The original communications must be received by the Office within thirty (30) days from
107 | P a g e

date of receipt of the telefacsimile.


130.3. No attestation, notarization, authentication, legalization or other certification of any signature
or other means of self-identification referred to in the preceding paragraphs, will be required, except,
where the signature concerns the surrender of a registration. (n)
Sec. 131. Priority Right. 131.1. An application for registration of a mark filed in the Philippines by a person referred to in
Section 3, and who previously duly filed an application for registration of the same mark in one of
those countries, shall be considered as filed as of the day the application was first filed in the foreign
country.
131.2. No registration of a mark in the Philippines by a person described in this section shall be
granted until such mark has been registered in the country of origin of the applicant.
131.3. Nothing in this section shall entitle the owner of a registration granted under this section to
sue for acts committed prior to the date on which his mark was registered in this country: Provided,
That, notwithstanding the foregoing, the owner of a well-known mark as defined in Section 123.1(e)
of this Act, that is not registered in the Philippines, may, against an identical or confusingly similar
mark, oppose its registration, or petition the cancellation of its registration or sue for unfair
competition, without prejudice to availing himself of other remedies provided for under the law.
131.4. In like manner and subject to the same conditions and requirements, the right provided in this
section may be based upon a subsequent regularly filed application in the same foreign country:
Provided, That any foreign application filed prior to such subsequent application has been
withdrawn, abandoned, or otherwise disposed of, without having been laid open to public inspection
and without leaving any rights outstanding, and has not served, nor thereafter shall serve, as a basis
for claiming a right of priority. (Sec. 37, R. A. No. 166a)
Sec. 132. Application Number and Filing Date.132.1. The Office shall examine whether the application satisfies the requirements for the grant of a
filing date as provided in Section 127 and Regulations relating thereto. If the application does not
satisfy the filing requirements, the Office shall notify the applicant who shall within a period fixed
by the Regulations complete or correct the application as required, otherwise, the application shall be
considered withdrawn.
132.2 Once an application meets the filing requirements of Section 127, it shall be numbered in the
sequential order, and the applicant shall be informed of the application number and the filing date of
108 | P a g e

the application will be deemed to have been abandoned. (n)


Sec. 133. Examination and Publication. 133.1. Once the application meets the filing requirements of Section 127, the Office shall examine
whether the application meets the requirements of Section 124 and the mark as defined in Section
121 is registrable under Section 123.
133.2. Where the Office finds that the conditions referred to in Subsection 133.1 are fulfilled, it
shall, upon payment of the prescribed fee. Forthwith cause the application, as filed, to be published
in the prescribed manner.
133.3. If after the examination, the applicant is not entitled to registration for any reason, the Office
shall advise the applicant thereof and the reasons therefor. The applicant shall have a period of four
(4) months in which to reply or amend his application, which shall then be re-examined. The
Regulations shall determine the procedure for the re-examination or revival of an application as well
as the appeal to the Director of Trademarks from any final action by the Examiner.
133.4. An abandoned application may be revived as a pending application within three (3) months
from the date of abandonment, upon good cause shown and the payment of the required fee.
133.5. The final decision of refusal of the Director of Trademarks shall be appealable to the Director
General in accordance with the procedure fixed by the Regulations. (Sec. 7, R. A. No. 166a)
Sec. 134. Opposition. - Any person who believes that he would be damaged by the registration of a
mark may, upon payment of the required fee and within thirty (30) days after the publication referred
to in Subsection 133.2, file with the Office an opposition to the application. Such opposition shall be
in writing and verified by the oppositor or by any person on his behalf who knows the facts, and
shall specify the grounds on which it is based and include a statement of the facts relied upon.
Copies of certificates of registration of marks registered in other countries or other supporting
documents mentioned in the opposition shall be filed therewith, together with the translation in
English, if not in the English language. For good cause shown and upon payment of the required
surcharge, the time for filing an opposition may be extended by the Director of Legal Affairs, who
shall notify the applicant of such extension. The Regulations shall fix the maximum period of time
within which to file the opposition. (Sec. 8, R. A. No. 165a)
Sec. 135. Notice and Hearing. - Upon the filing of an opposition, the Office shall serve notice of the
filing on the applicant, and of the date of the hearing thereof upon the applicant and the oppositor
and all other persons having any right, title or interest in the mark covered by the application, as
109 | P a g e

appear of record in the Office. (Sec. 9 R. A. No. 165)


Sec. 136. Issuance and Publication of Certificate. - When the period for filing the opposition has
expired, or when the Director of Legal Affairs shall have denied the opposition, the Office upon
payment of the required fee, shall issue the certificate of registration. Upon issuance of a certificate
of registration, notice thereof making reference to the publication of the application shall be
published in the IPO Gazette. (Sec. 10, R. A. No. 165)
Sec. 137. Registration of Mark and Issuance of a Certificate to the Owner or his Assignee. 137.1. The Office shall maintain a Register in which shall be registered marks, numbered in the
order of their registration, and all transactions in respect of each mark, required to be recorded by
virtue of this law.
137.2. The registration of a mark shall include a reproduction of the mark and shall mention: its
number; the name and address of the registered owner and, if the registered owners address is
outside the country, his address for service within the country; the dates of application and
registration; if priority is claimed, an indication of this fact, and the number, date and country of the
application, basis of the priority claims; the list of goods or services in respect of which registration
has been granted, with the indication of the corresponding class or classes; and such other data as the
Regulations may prescribe from time to time.
137.3. A certificate of registration of a mark may be issued to the assignee of the
applicant: Provided, That the assignment is recorded in the Office. In case of a change of ownership,
the Office shall at the written request signed by the owner, or his representative, or by the new
owner, or his representative and upon a proper showing and the payment of the prescribed fee, issue
to such assignee a new certificate of registration of the said mark in the name of such assignee, and
for the unexpired part of the original period.
137.4. The Office shall record any change of address, or address for service, which shall be notified
to it by the registered owner.
137.5. In the absence of any provision to the contrary in this Act, communications to be made to the
registered owner by virtue of this Act shall be sent to him at his last recorded address and, at the
same, at his last recorded address for service. (Sec. 19, R. A. No. 166a)
Sec. 138. Certificates of Registration. - A certificate of registration of a mark shall be prima facie
evidence of the validity of the registration, the registrants ownership of the mark, and of the
registrants exclusive right to use the same in connection with the goods or services and those that
110 | P a g e

are related thereto specified in the certificate. (Sec. 20, R. A. No. 165)
Sec. 139. Publication of Registered Marks; Inspection of Register. 139.1. The Office shall publish, in the form and within the period fixed by the Regulations, the mark
registered, in the order of their registration, reproducing all the particulars referred to in Subsection
137.2.
139.2. Marks registered at the Office may be inspected free of charge and any person may obtain
copies thereof at his own expense. This provision shall also be applicable to transactions recorded in
respect of any registered mark. (n)
Sec. 140. Cancellation upon Application by Registrant; Amendment or Disclaimer of Registration. Upon application of the registrant, the Office may permit any registration to be surrendered for
cancellation, and upon cancellation the appropriate entry shall be made in the records of the Office.
Upon application of the registrant and payment of the prescribed fee, the Office for good cause may
permit any registration to be amended or to be disclaimed in part: Provided, That the amendment or
disclaimer does not alter materially the character of the mark. Appropriate entry shall be made in the
records of the Office upon the certificate of registration or, if said certificates is lost or destroyed,
upon a certified copy thereof. (Sec. 14, R. A. No. 166)
Sec. 141. Sealed and Certified Copies as Evidence. - Copies of any records, books, papers, or
drawings belonging to the Office relating to marks, and copies of registrations, when authenticated
by the seal of the Office and certified by the Director of the Administrative, Financial and Human
Resource Development Service Bureau or in his name by an employee of the Office duly authorized
by said Director, shall be evidence in all cases wherein the originals would be evidence; and any
person who applies and pays the prescribed fee shall secure such copies. (n)
Sec. 142. Correction of Mistakes Made by the Office. - Whenever a material mistake in a registration
incurred through the fault of the Office is clearly disclosed by the records of the Office, a certificate
stating the fact and nature of such mistake shall be issued without charge, recorded and a printed
copy thereof shall be attached to each printed copy of the registration. Such corrected registration
shall thereafter have the same effect as the original certificate; or in the discretion of the Director of
the Administrative, Financial and Human Resource Development Service Bureau a new certificate of
registration may be issued without charge. All certificates of correction heretofore issued in
accordance with the Regulations and the registration to which they are attached shall have the same
force and effect as if such certificates and their issuance had been authorized by this Act. (n)
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Sec. 143. Correction of Mistakes Made by Applicant. - Whenever a mistake is made in a registration
and such mistake occurred in good faith through the fault of the applicant, the Office may issue a
certificate upon the payment of the prescribed fee: Provided, That the correction does not involve
any change in the registration that requires republication of the mark. (n)
Sec. 144. Classification of Goods and Services. 144.1. Each registration, and any publication of the Office which concerns an application or
registration effected by the Office shall indicate the goods or services by their names, grouped
according to the classes of the Nice Classification, and each group shall be preceded by the number
of the class of that Classification to which that group of goods or services belongs, presented in the
order of the classes of the said Classification.
144.2. Goods or services may not be considered as being similar or dissimilar to each other on the
ground that, in any registration or publication by the Office, they appear in different classes of the
Nice Classification. (Sec. 6, R. A. No. 166a)
Sec. 145. Duration.- A certificate of registration shall remain in force for ten (10)
years: Provided, That the registrant shall file a declaration of actual use and evidence to that effect,
or shall show valid reasons based on the existence of obstacles to such use, as prescribed by the
Regulations, within one (1) year from the fifth anniversary of the date of the registration of the mark.
Otherwise, the mark shall be removed from the Register by the Office. (Sec. 12, R. A. No. 166a)
Sec. 146. Renewal. 146.1. A certificate of registration may be renewed for periods of ten (10) years at its expiration upon
payment of the prescribed fee and upon filing of a request. The request shall contain the following
indications:
(a) An indication that renewal is sought;
(b) The name and address of the registrant or his successor-in-interest, hereafter referred to as
the "right holder";
(c) The registration number of the registration concerned;
(d) The filing date of the application which resulted in the registration concerned to be renewed;
(e) Where the right holder has a representative, the name and address of that representative;
(f) The names of the recorded goods or services for which the renewal is requested or the names of
the recorded goods or services for which the renewal is not requested, grouped according to the
classes of the Nice Classification to which that group of goods or services belongs and presented in
112 | P a g e

the order of the classes of the said Classification; and


(g) A signature by the right holder or his representative.
146.2. Such request shall be in Filipino or English and may be made at any time within six (6)
months before the expiration of the period for which the registration was issued or renewed, or it
may be made within six (6) months after such expiration on payment of the additional fee herein
prescribed.
146.3. If the Office refuses to renew the registration, it shall notify the registrant of his refusal and
the reasons therefor.
146.4. An applicant for renewal not domiciled in the Philippines shall be subject to and comply with
the requirements of this Act. (Sec. 15, R. A. No. 166a)
Sec. 147. Rights Conferred. 147.1. The owner of a registered mark shall have the exclusive right to prevent all third parties not
having the owners consent from using in the course of trade identical or similar signs or containers
for goods or services which are identical or similar to those in respect of which the trademark is
registered where such use would result in a likelihood of confusion. In case of the use, of an identical
sign for identical goods or services, a likelihood of confusion shall be presumed.
147.2. The exclusive right of the owner of a well-known mark defined in Subsection 123.1(e) which
is registered in the Philippines, shall extend to goods and services which are not similar to those in
respect of which the mark is registered: Provided, That use of that mark in relation to those goods or
services would indicate a connection between those goods or services and the owner of the
registered mark: Provided, further, That the interests of the owner of the registered mark are likely to
be damaged by such use. (n)
Sec. 148. Use of Indications by Third Parties for Purposes Other than those for which the Mark is
Used. - Registration of the mark shall not confer on the registered owner the right to preclude third
parties from using bona fide their names, addresses, pseudonyms, a geographical name, or exact
indications concerning the kind, quality, quantity, destination, value, place of origin, or time of
production or of supply, of their goods or services: Provided, That such use is confined to the
purposes of mere identification or information and cannot mislead the public as to the source of the
goods or services. (n)
Sec. 149. Assignment and Transfer of Application and Registration. 149.1. An application for registration of a mark, or its registration, may be assigned or transferred
113 | P a g e

with or without the transfer of the business using the mark. (n)
149.2. Such assignment or transfer shall, however, be null and void if it is liable to mislead the
public, particularly as regards the nature, source, manufacturing process, characteristics, or
suitability for their purpose, of the goods or services to which the mark is applied.
149.3. The assignment of the application for registration of a mark, or of its registration, shall be in
writing and require the signatures of the contracting parties. Transfers by mergers or other forms of
succession may be made by any document supporting such transfer.
149.4. Assignments and transfers of registration of marks shall be recorded at the Office on payment
of the prescribed fee; assignment and transfers of applications for registration shall, on payment of
the same fee, be provisionally recorded, and the mark, when registered, shall be in the name of the
assignee or transferee.
149.5. Assignments and transfers shall have no effect against third parties until they are recorded at
the Office. (Sec. 31, R. A. No. 166a)
Sec. 150. License Contracts. 150.1. Any license contract concerning the registration of a mark, or an application therefor, shall
provide for effective control by the licensor of the quality of the goods or services of the licensee in
connection with which the mark is used. If the license contract does not provide for such quality
control, or if such quality control is not effectively carried out, the license contract shall not be valid.
150.2. A license contract shall be submitted to the Office which shall keep its contents confidential
but shall record it and publish a reference thereto. A license contract shall have no effect against third
parties until such recording is effected. The Regulations shall fix the procedure for the recording of
the license contract. (n)
Sec. 151. Cancellation. 151.1. A petition to cancel a registration of a mark under this Act may be filed with the Bureau of
Legal Affairs by any person who believes that he is or will be damaged by the registration of a mark
under this Act as follows:
(a) Within five (5) years from the date of the registration of the mark under this Act.
(b) At any time, if the registered mark becomes the generic name for the goods or services, or a
portion thereof, for which it is registered, or has been abandoned, or its registration was obtained
fraudulently or contrary to the provisions of this Act, or if the registered mark is being used by, or
with the permission of, the registrant so as to misrepresent the source of the goods or services on or
114 | P a g e

in connection with which the mark is used. If the registered mark becomes the generic name for less
than all of the goods or services for which it is registered, a petition to cancel the registration for
only those goods or services may be filed. A registered mark shall not be deemed to be the generic
name of goods or services solely because such mark is also used as a name of or to identify a unique
product or service. The primary significance of the registered mark to the relevant public rather than
purchaser motivation shall be the test for determining whether the registered mark has become the
generic name of goods or services on or in connection with which it has been used. (n)
(c) At any time, if the registered owner of the mark without legitimate reason fails to use the mark
within the Philippines, or to cause it to be used in the Philippines by virtue of a license during an
uninterrupted period of three (3) years or longer.
151.2. Notwithstanding the foregoing provisions, the court or the administrative agency vested with
jurisdiction to hear and adjudicate any action to enforce the rights to a registered mark shall likewise
exercise jurisdiction to determine whether the registration of said mark may be cancelled in
accordance with this Act. The filing of a suit to enforce the registered mark with the proper court or
agency shall exclude any other court or agency from assuming jurisdiction over a subsequently filed
petition to cancel the same mark. On the other hand, the earlier filing of petition to cancel the mark
with the Bureau of Legal Affairs shall not constitute a prejudicial question that must be resolved
before an action to enforce the rights to same registered mark may be decided. (Sec. 17, R. A. No.
166a)
Sec. 152. Non-use of a Mark When Excused. 152.1. Non-use of a mark may be excused if caused by circumstances arising independently of the
will of the trademark owner. Lack of funds shall not excuse non-use of a mark.
152.2. The use of the mark in a form different from the form in which it is registered, which does not
alter its distinctive character, shall not be ground for cancellation or removal of the mark and shall
not diminish the protection granted to the mark.
152.3. The use of a mark in connection with one or more of the goods or services belonging to the
class in respect of which the mark is registered shall prevent its cancellation or removal in respect of
all other goods or services of the same class.
152.4. The use of a mark by a company related with the registrant or applicant shall inure to the
latters benefit, and such use shall not affect the validity of such mark or of its registration: Provided,
That such mark is not used in such manner as to deceive the public. If use of a mark by a person is
115 | P a g e

controlled by the registrant or applicant with respect to the nature and quality of the goods or
services, such use shall inure to the benefit of the registrant or applicant. (n)
Sec. 153. Requirements of Petition; Notice and Hearing. - Insofar as applicable, the petition for
cancellation shall be in the same form as that provided in Section 134 hereof, and notice and hearing
shall be as provided in Section 135 hereof.
Sec. 154. Cancellation of Registration. - If the Bureau of Legal Affairs finds that a case for
cancellation has been made out, it shall order the cancellation of the registration. When the order or
judgment becomes final, any right conferred by such registration upon the registrant or any person in
interest of record shall terminate. Notice of cancellation shall be published in the IPO Gazette. (Sec.
19. R. A. No. 166a)
Sec. 155. Remedies; Infringement. - Any person who shall, without the consent of the owner of the
registered mark:
155.1. Use in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered
mark or the same container or a dominant feature thereof in connection with the sale, offering for
sale, distribution, advertising of any goods or services including other preparatory steps necessary to
carry out the sale of any goods or services on or in connection with which such use is likely to cause
confusion, or to cause mistake, or to deceive; or
155.2. Reproduce, counterfeit, copy or colorably imitate a registered mark or a dominant feature
thereof and apply such reproduction, counterfeit, copy or colorable imitation to labels, signs, prints,
packages, wrappers, receptacles or advertisements intended to be used in commerce upon or in
connection with the sale, offering for sale, distribution, or advertising of goods or services on or in
connection with which such use is likely to cause confusion, or to cause mistake, or to deceive, shall
be liable in a civil action for infringement by the registrant for the remedies hereinafter set forth:
Provided, That the infringement takes place at the moment any of the acts stated in Subsection
155.1 or this subsection are committed regardless of whether there is actual sale of goods or services
using the infringing material. (Sec. 22, R. A. No 166a)
Sec. 156. Actions, and Damages and Injunction for Infringement. 156.1. The owner of a registered mark may recover damages from any person who infringes his
rights, and the measure of the damages suffered shall be either the reasonable profit which the
complaining party would have made, had the defendant not infringed his rights, or the profit which
the defendant actually made out of the infringement, or in the event such measure of damages cannot
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be readily ascertained with reasonable certainty, then the court may award as damages a reasonable
percentage based upon the amount of gross sales of the defendant or the value of the services in
connection with which the mark or trade name was used in the infringement of the rights of the
complaining party.(Sec. 23, First Par., R. A. No. 166a)
156.2. On application of the complainant, the court may impound during the pendency of the action,
sales invoices and other documents evidencing sales. (n)
156.3. In cases where actual intent to mislead the public or to defraud the complainant is shown, in
the discretion of the court, the damages may be doubled. (Sec. 23, First Par., R. A. No. 166)
156.4. The complainant, upon proper showing, may also be granted injunction.(Sec. 23, Second Par.,
R. A. No. 166a)
Sec. 157. Power of Court to Order Infringing Material Destroyed. 157.1. In any action arising under this Act, in which a violation of any right of the owner of the
registered mark is established, the court may order that goods found to be infringing be, without
compensation of any sort, disposed of outside the channels of commerce in such a manner as to
avoid any harm caused to the right holder, or destroyed; and all labels, signs, prints, packages,
wrappers, receptacles and advertisements in the possession of the defendant, bearing the registered
mark or trade name or any reproduction, counterfeit, copy or colorable imitation thereof, all plates,
molds, matrices and other means of making the same, shall be delivered up and destroyed.
157.2. In regard to counterfeit goods, the simple removal of the trademark affixed shall not be
sufficient other than in exceptional cases which shall be determined by the Regulations, to permit the
release of the goods into the channels of commerce. (Sec. 24, R. A. No. 166a).
Sec. 158. Damages; Requirement of Notice. - In any suit for infringement, the owner of the
registered mark shall not be entitled to recover profits or damages unless the acts have been
committed with knowledge that such imitation is likely to cause confusion, or to cause mistake, or to
deceive. Such knowledge is presumed if the registrant gives notice that his mark is registered by
displaying with the mark the words "Registered Mark" or the letter R within a circle or if the
defendant had otherwise actual notice of the registration. (Sec. 21, R. A. No. 166a)
Sec. 159. Limitations to Actions for Infringement. - Notwithstanding any other provision of this Act,
the remedies given to the owner of a right infringed under this Act shall be limited as follows:
159.1 Notwithstanding the provisions of Section 155 hereof, a registered mark shall have no effect
against any person who, in good faith, before the filing date or the priority date, was using the mark
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for the purposes of his business or enterprise: Provided, That his right may only be transferred or
assigned together with his enterprise or business or with that part of his enterprise or business in
which the mark is used.
159.2 Where an infringer who is engaged solely in the business of printing the mark or other
infringing materials for others is an innocent infringer, the owner of the right infringed shall be
entitled as against such infringer only to an injunction against future printing.
159.3. Where the infringement complained of is contained in or is part of paid advertisement in a
newspaper, magazine, or other similar periodical or in an electronic communication, the remedies of
the owner of the right infringed as against the publisher or distributor of such newspaper, magazine,
or other similar periodical or electronic communication shall be limited to an injunction against the
presentation of such advertising matter in future issues of such newspapers, magazines, or other
similar periodicals or in future transmissions of such electronic communications. The limitations of
this subparagraph shall apply only to innocent infringers: Provided, That such injunctive relief shall
not be available to the owner of the right infringed with respect to an issue of a newspaper,
magazine, or other similar periodical or an electronic communication containing infringing matter
where restraining the dissemination of such infringing matter in any particular issue of such
periodical or in an electronic communication would delay the delivery of such issue or transmission
of such electronic communication is customarily conducted in accordance with the sound business
practice, and not due to any method or device adopted to evade this section or to prevent or delay the
issuance of an injunction or restraining order with respect to such infringing matter. (n)
Sec. 160. Right of Foreign Corporation to Sue in Trademark or Service Mark Enforcement Action.Any foreign national or juridical person who meets the requirements of Section 3 of this Act and
does not engage in business in the Philippines may bring a civil or administrative action hereunder
for opposition, cancellation, infringement, unfair competition, or false designation of origin and false
description, whether or not it is licensed to do business in the Philippines under existing laws. (Sec.
21-A, R. A. No. 166a)
Sec. 161. Authority to Determine Right to Registration. - In any action involving a registered mark,
the court may determine the right to registration, order the cancellation of a registration, in whole or
in part, and otherwise rectify the register with respect to the registration of any party to the action in
the exercise of this. Judgment and orders shall be certified by the court to the Director, who shall
make appropriate entry upon the records of the Bureau, and shall be controlled thereby. (Sec. 25, R.
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A. No. 166a)
Sec. 162. Action for False or Fraudulent Declaration. - Any person who shall procure registration in
the Office of a mark by a false or fraudulent declaration or representation, whether oral or in writing,
or by any false means, shall be liable in a civil action by any person injured thereby for any damages
sustained in consequence thereof. (Sec. 26, R. A. No. 166)
Sec. 163. Jurisdiction of Court. - All actions under Sections 150, 155, 164, and 166 to 169 shall be
brought before the proper courts with appropriate jurisdiction under existing laws. (Sec. 27, R. A.
No. 166)
Sec. 164. Notice of Filing Suit Given to the Director. - It shall be the duty of the clerks of such courts
within one (1) month after the filing of any action, suit, or proceeding involving a mark registered
under the provisions of this Act, to notify the Director in writing setting forth: the names and
addresses of the litigants and designating the number of the registration or registrations and within
one (1) month after the judgment is entered or an appeal is taken, the clerk of court shall give notice
thereof to the Office, and the latter shall endorse the same upon the filewrapper of the said
registration or registrations and incorporate the same as a part of the contents of said filewrapper. (n)
Sec. 165. Trade Names or Business Names. 165.1. A name or designation may not be used as a trade name if by its nature or the use to which
such name or designation may be put, it is contrary to public order or morals and if, in particular, it is
liable to deceive trade circles or the public as to the nature of the enterprise identified by that name.
165.2. (a) Notwithstanding any laws or regulations providing for any obligation to register trade
names, such names shall be protected, even prior to or without registration, against any unlawful act
committed by third parties.
(b) In particular, any subsequent use of the trade name by a third party, whether as a trade name or a
mark or collective mark, or any such use of a similar trade name or mark, likely to mislead the
public, shall be deemed unlawful.
165.3. The remedies provided for in Sections 153 to 156 and Sections 166 and 167 shall
apply mutatis mutandis.
165.4. Any change in the ownership of a trade name shall be made with the transfer of the enterprise
or part thereof identified by that name. The provisions of Subsections 149.2 to 149.4 shall apply
mutatis mutandis.
Sec. 166. Goods Bearing Infringing Marks or Trade Names. - No article of imported merchandise
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which shall copy or simulate the name of any domestic product, or manufacturer, or dealer, or which
shall copy or simulate a mark registered in accordance with the provisions of this Act, or shall bear a
mark or trade name calculated to induce the public to believe that the article is manufactured in the
Philippines, or that it is manufactured in any foreign country or locality other than the country or
locality where it is in fact manufactured, shall be admitted to entry at any customhouse of the
Philippines. In order to aid the officers of the customs service in enforcing this prohibition, any
person who is entitled to the benefits of this Act, may require that his name and residence, and the
name of the locality in which his goods are manufactured, a copy of the certificate of registration of
his mark or trade name, to be recorded in books which shall be kept for this purpose in the Bureau of
Customs, under such regulations as the Collector of Customs with the approval of the Secretary of
Finance shall prescribe, and may furnish to the said Bureau facsimiles of his name, the name of the
locality in which his goods are manufactured, or his registered mark or trade name, and thereupon
the Collector of Customs shall cause one (1) or more copies of the same to be transmitted to each
collector or to other proper officer of the Bureau of Customs. (Sec. 35, R. A. No. 166)
Sec. 167. Collective Marks. 167.1. Subject to Subsections 167.2 and 167.3, Sections 122 to 164 and 166 shall apply to collective
marks, except that references therein to "mark" shall be read as "collective mark."
167.2 (a) An application for registration of a collective mark shall designate the mark as a collective
mark and shall be accompanied by a copy of the agreement, if any, governing the use of the
collective mark.
(b) The registered owner of a collective mark shall notify the Director of any changes made in
respect of the agreement referred to in paragraph (a).
167.3. In addition to the grounds provided in Section 149, the Court shall cancel the registration of a
collective mark if the person requesting the cancellation proves that only the registered owner uses
the mark, or that he uses or permits its use in contravention of the agreements referred to in
Subsection 166.2 or that he uses or permits its use in a manner liable to deceive trade circles or the
public as to the origin or any other common characteristics of the goods or services concerned.
167.4. The registration of a collective mark, or an application therefor shall not be the subject of a
license contract. (Sec. 40, R. A. No. 166a)
Sec. 168. Unfair Competition, Rights, Regulation and Remedies. 168.1. A person who has identified in the mind of the public the goods he manufactures or deals in,
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his business or services from those of others, whether or not a registered mark is employed, has a
property right in the goodwill of the said goods, business or services so identified, which will be
protected in the same manner as other property rights.
168.2. Any person who shall employ deception or any other means contrary to good faith by which
he shall pass off the goods manufactured by him or in which he deals, or his business, or services for
those of the one having established such goodwill, or who shall commit any acts calculated to
produce said result, shall be guilty of unfair competition, and shall be subject to an action therefor.
168.3. In particular, and without in any way limiting the scope of protection against unfair
competition, the following shall be deemed guilty of unfair competition:
(a) Any person, who is selling his goods and gives them the general appearance of goods of another
manufacturer or dealer, either as to the goods themselves or in the wrapping of the packages in
which they are contained, or the devices or words thereon, or in any other feature of their
appearance, which would be likely to influence purchasers to believe that the goods offered are those
of a manufacturer or dealer, other than the actual manufacturer or dealer, or who otherwise clothes
the goods with such appearance as shall deceive the public and defraud another of his legitimate
trade, or any subsequent vendor of such goods or any agent of any vendor engaged in selling such
goods with a like purpose;
(b) Any person who by any artifice, or device, or who employs any other means calculated to induce
the false belief that such person is offering the services of another who has identified such services in
the mind of the public; or
(c) Any person who shall make any false statement in the course of trade or who shall commit any
other act contrary to good faith of a nature calculated to discredit the goods, business or services of
another.
168.4. The remedies provided by Sections 156, 157 and 161 shall apply mutatis mutandis. (Sec. 29,
R. A. No. 166a)
Sec. 169. False Designations of Origin; False Description or Representation. 169.1. Any person who, on or in connection with any goods or services, or any container for goods,
uses in commerce any word, term, name, symbol, or device, or any combination thereof, or any false
designation of origin, false or misleading description of fact, or false or misleading representation of
fact, which:
(a) is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or
121 | P a g e

association of such person with another person, or as to the origin, sponsorship, or approval of his or
her goods, services, or commercial activities by another person; or
(b) in commercial advertising or promotion, misrepresents the nature, characteristics, qualities, or
geographic origin of his or her or another persons goods, services, or commercial activities, shall be
liable to a civil action for damages and injunction provided in Sections 156 and 157 of this Act by
any person who believes that he or she is or likely to be damaged by such act.
169.2. Any goods marked or labeled in contravention of the provisions of this Section shall not be
imported into the Philippines or admitted entry at any customhouse of the Philippines. The owner,
importer, or consignee of goods refused entry at any customhouse under this section may have any
recourse under the customs revenue laws or may have the remedy given by this Act in cases
involving goods refused entry or seized. (Sec. 30, R. A. No. 166a)
Sec. 170. Penalties. - Independent of the civil and administrative sanctions imposed by law, a
criminal penalty of imprisonment from two (2) years to five (5) years and a fine ranging from Fifty
thousand pesos (P50,000) to Two hundred thousand pesos (P200,000), shall be imposed on any
person who is found guilty of committing any of the acts mentioned in Section 155, Section 168 and
Subsection 169.1. (Arts. 188 and 189, Revised Penal Code)
PART IV
THE LAW ON COPYRIGHT
Chapter I
PRELIMINARY PROVISIONS
Sec. 171. Definitions. - For the purpose of this Act, the following terms have the following meaning:
171.1. "Author" is the natural person who has created the work;
171.2. A "collective work" is a work which has been created by two (2) or more natural persons at
the initiative and under the direction of another with the understanding that it will be disclosed by
the latter under his own name and that contributing natural persons will not be identified;
171.3. "Communication to the public" or "communicate to the public" means the making of a work
available to the public by wire or wireless means in such a way that members of the public may
access these works from a place and time individually chosen by them;
171.4. A "computer" is an electronic or similar device having information-processing capabilities,
122 | P a g e

and a "computer program" is a set of instructions expressed in words, codes, schemes or in any
other form, which is capable when incorporated in a medium that the computer can read, or causing
the computer to perform or achieve a particular task or result;
171.5. "Public lending" is the transfer of possession of the original or a copy of a work or sound
recording for a limited period, for non-profit purposes, by an institution the services of which are
available to the public, such as public library or archive;
171.6. "Public performance," in the case of a work other than an audiovisual work, is the recitation,
playing, dancing, acting or otherwise performing the work, either directly or by means of any device
or process; in the case of an audiovisual work, the showing of its images in sequence and the
making of the sounds accompanying it audible; and, in the case of a sound recording, making the
recorded sounds audible at a place or at places where persons outside the normal circle of a family
and that familys closest social acquaintances are or can be present, irrespective of whether they are
or can be present at the same place and at the same time, or at different places and/or at different
times, and where the performance can be perceived without the need for communication within the
meaning of Subsection 171.3;
171.7. "Published works" means works, which, with the consent of the authors, are made available
to the public by wire or wireless means in such a way that members of the public may access these
works from a place and time individually chosen by them: Provided, That availability of such copies
has been such, as to satisfy the reasonable requirements of the public, having regard to the nature of
the work;
171.8. "Rental" is the transfer of the possession of the original or a copy of a work or a sound
recording for a limited period of time, for profit-making purposes;
171.9. "Reproduction" is the making of one (1) or more copies of a work or a sound recording in any
manner or form (Sec. 41 [E], P.D. No. 49a);
171.10. A "work of applied art" is an artistic creation with utilitarian functions or incorporated in a
useful article, whether made by hand or produced on an industrial scale;
171.11. A "work of the Government of the Philippines" is a work created by an officer or employee
of the Philippine Government or any of its subdivisions and instrumentalities, including
government-owned or controlled corporations as part of his regularly prescribed official duties.
CHAPTER II
ORIGINAL WORKS
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Sec. 172. Literary and Artistic Works. 172.1 Literary and artistic works, hereinafter referred to as "works", are original intellectual
creations in the literary and artistic domain protected from the moment of their creation and shall
include in particular:
(a) Books, pamphlets, articles and other writings;
(b) Periodicals and newspapers;
(c) Lectures, sermons, addresses, dissertations prepared for oral delivery, whether or not reduced in
writing or other material form;
(d) Letters;
(e) Dramatic or dramatico-musical compositions; choreographic works or entertainment in dumb
shows;
(f) Musical compositions, with or without words;
(g) Works of drawing, painting, architecture, sculpture, engraving, lithography or other works of
art; models or designs for works of art;
(h) Original ornamental designs or models for articles of manufacture, whether or not registrable as
an industrial design, and other works of applied art;
(i) Illustrations, maps, plans, sketches, charts and three-dimensional works relative to geography,
topography, architecture or science;
(j) Drawings or plastic works of a scientific or technical character;
(k) Photographic works including works produced by a process analogous to photography; lantern
slides;
(l) Audiovisual works and cinematographic works and works produced by a process analogous to
cinematography or any process for making audio-visual recordings;
(m) Pictorial illustrations and advertisements;
(n) Computer programs; and
(o) Other literary, scholarly, scientific and artistic works.
172.2. Works are protected by the sole fact of their creation, irrespective of their mode or form of
expression, as well as of their content, quality and purpose. (Sec. 2, P. D. No. 49a)
Chapter III
DERIVATIVE WORKS
Sec. 173. Derivative Works. 124 | P a g e

173.1. The following derivative works shall also be protected by copyright:


(a) Dramatizations, translations, adaptations, abridgments, arrangements, and other alterations of
literary or artistic works; and
(b) Collections of literary, scholarly or artistic works, and compilations of data and other materials
which are original by reason of the selection or coordination or arrangement of their contents. (Sec.
2, [P] and [Q], P. D. No. 49)
173.2. The works referred to in paragraphs (a) and (b) of Subsection 173.1 shall be protected as a
new works: Provided however, That such new work shall not affect the force of any subsisting
copyright upon the original works employed or any part thereof, or be construed to imply any right
to such use of the original works, or to secure or extend copyright in such original works. (Sec. 8, P.
D. 49; Art. 10, TRIPS)
Sec. 174. Published Edition of Work. - In addition to the right to publish granted by the author, his
heirs or assigns, the publisher shall have a copy right consisting merely of the right of reproduction
of the typographical arrangement of the published edition of the work. (n)
Chapter IV
WORKS NOT PROTECTED
Sec. 175. Unprotected Subject Matter. - Notwithstanding the provisions of Sections 172 and 173, no
protection shall extend, under this law, to any idea, procedure, system method or operation, concept,
principle, discovery or mere data as such, even if they are expressed, explained, illustrated or
embodied in a work; news of the day and other miscellaneous facts having the character of mere
items of press information; or any official text of a legislative, administrative or legal nature, as well
as any official translation thereof. (n)
Sec. 176. Works of the Government. 176.1. No copyright shall subsist in any work of the Government of the Philippines. However, prior
approval of the government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things, impose as a
condition the payment of royalties. No prior approval or conditions shall be required for the use of
any purpose of statutes, rules and regulations, and speeches, lectures, sermons, addresses, and
dissertations, pronounced, read or rendered in courts of justice, before administrative agencies, in
deliberative assemblies and in meetings of public character. (Sec. 9, First Par., P. D. No. 49)
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176.2. The Author of speeches, lectures, sermons, addresses, and dissertations mentioned in the
preceding paragraphs shall have the exclusive right of making a collection of his works. (n)
176.3. Notwithstanding the foregoing provisions, the Government is not precluded from receiving
and holding copyrights transferred to it by assignment, bequest or otherwise; nor shall publication
or republication by the government in a public document of any work in which copy right is
subsisting be taken to cause any abridgment or annulment of the copyright or to authorize any use
or appropriation of such work without the consent of the copyright owners. (Sec. 9, Third Par., P. D.
No. 49)
CHAPTER V
COPYRIGHT OR ECONOMIC RIGHTS
Sec. 177. Copy or Economic Rights. - Subject to the provisions of Chapter VIII, copyright or
economic rights shall consist of the exclusive right to carry out, authorize or prevent the following
acts:
177.1. Reproduction of the work or substantial portion of the work;
177.2 Dramatization, translation, adaptation, abridgment, arrangement or other transformation of
the work;
177.3. The first public distribution of the original and each copy of the work by sale or other forms
of transfer of ownership;
177.4. Rental of the original or a copy of an audiovisual or cinematographic work, a work embodied
in a sound recording, a computer program, a compilation of data and other materials or a musical
work in graphic form, irrespective of the ownership of the original or the copy which is the subject
of the rental; (n)
177.5. Public display of the original or a copy of the work;
177.6. Public performance of the work; and
177.7. Other communication to the public of the work (Sec. 5, P. D. No. 49a)
CHAPTER VI
OWNERSHIP OF COPYRIGHT
Sec. 178. Rules on Copyright Ownership. - Copyright ownership shall be governed by the
following rules:
178.1. Subject to the provisions of this section, in the case of original literary and artistic works,
copyright shall belong to the author of the work;
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178.2. In the case of works of joint authorship, the co-authors shall be the original owners of the
copyright and in the absence of agreement, their rights shall be governed by the rules on coownership. If, however, a work of joint authorship consists of parts that can be used separately and
the author of each part can be identified, the author of each part shall be the original owner of the
copyright in the part that he has created;
178.3. In the case of work created by an author during and in the course of his employment, the
copyright shall belong to:
(a) The employee, if the creation of the object of copyright is not a part of his regular duties even if
the employee uses the time, facilities and materials of the employer.
(b) The employer, if the work is the result of the performance of his regularly-assigned duties, unless
there is an agreement, express or implied, to the contrary.
178.4. In the case of a work-commissioned by a person other than an employer of the author and
who pays for it and the work is made in pursuance of the commission, the person who so
commissioned the work shall have ownership of work, but the copyright thereto shall remain with
the creator, unless there is a written stipulation to the contrary;
178.5. In the case of audiovisual work, the copyright shall belong to the producer, the author of the
scenario, the composer of the music, the film director, and the author of the work so adapted.
However, subject to contrary or other stipulations among the creators, the producers shall exercise
the copyright to an extent required for the exhibition of the work in any manner, except for the right
to collect performing license fees for the performance of musical compositions, with or without
words, which are incorporated into the work; and
178.6. In respect of letters, the copyright shall belong to the writer subject to the provisions of
Article 723 of the Civil Code. (Sec. 6, P. D. No. 49a)
Sec. 179. Anonymous and Pseudonymous Works. - For purposes of this Act, the publishers shall be
deemed to represent the authors of articles and other writings published without the names of the
authors or under pseudonyms, unless the contrary appears, or the pseudonyms or adopted name
leaves no doubts as to the authors identity, or if the author of the anonymous works discloses his
identity. (Sec.

7,

P.

CHAPTER VII
127 | P a g e

D.

49)

TRANSFER OR ASSIGNMENT OF COPYRIGHT


Sec. 180. Rights of Assignee. 180.1. The copyright may be assigned in whole or in part. Within the scope of the assignment, the
assignee is entitled to all the rights and remedies which the assignor had with respect to the
copyright.
180.2. The copyright is not deemed assigned inter vivos in whole or in part unless there is a written
indication of such intention.
180.3. The submission of a literary, photographic or artistic work to a newspaper, magazine or
periodical for publication shall constitute only a license to make a single publication unless a
greater right is expressly granted. If two (2) or more persons jointly own a copyright or any part
thereof, neither of the owners shall be entitled to grant licenses without the prior written consent of
the other owner or owners. (Sec. 15, P. D. No. 49a)
Sec. 181. Copyright and Material Object. - The copyright is distinct from the property in the
material object subject to it. Consequently, the transfer or assignment of the copyright shall not itself
constitute a transfer of the material object. Nor shall a transfer or assignment of the sole copy or of
one or several copies of the work imply transfer or assignment of the copyright. (Sec. 16, P. D. No.
49)
Sec. 182. Filing of Assignment of License. - An assignment or exclusive license may be filed in
duplicate with the National Library upon payment of the prescribed fee for registration in books and
records kept for the purpose. Upon recording, a copy of the instrument shall be, returned to the
sender with a notation of the fact of record. Notice of the record shall be published in the IPO
Gazette. (Sec. 19, P. D. No. 49a)
Sec. 183. Designation of Society. - The copyright owners or their heirs may designate a society of
artists, writers or composers to enforce their economic rights and moral rights on their behalf. (Sec.
32, P. D. No. 49a)
CHAPTER VIII
LIMITATIONS ON COPYRIGHT
Sec. 184. Limitations on Copyright. 184.1. Notwithstanding the provisions of Chapter V, the following acts shall not constitute
infringement of copyright:
(a) the recitation or performance of a work, once it has been lawfully made accessible to the public,
128 | P a g e

if done privately and free of charge or if made strictly for a charitable or religious institution or
society; (Sec. 10(1), P. D. No. 49)
(b) The making of quotations from a published work if they are compatible with fair use and only to
the extent justified for the purpose, including quotations from newspaper articles and periodicals in
the form of press summaries:Provided, That the source and the name of the author, if appearing on
the work, are mentioned; (Sec. 11, Third Par., P. D. No. 49)
(c) The reproduction or communication to the public by mass media of articles on current political,
social, economic, scientific or religious topic, lectures, addresses and other works of the same
nature, which are delivered in public if such use is for information purposes and has not been
expressly reserved:Provided, That the source is clearly indicated; (Sec. 11, P. D. No. 49)
(d) The reproduction and communication to the public of literary, scientific or artistic works as part
of reports of current events by means of photography, cinematography or broadcasting to the extent
necessary for the purpose; (Sec. 12, P. D. No. 49)
(e) The inclusion of a work in a publication, broadcast, or other communication to the public, sound
recording or film, if such inclusion is made by way of illustration for teaching purposes and is
compatible with fair use: Provided, That the source and of the name of the author, if appearing in
the work, are mentioned;
(f) The recording made in schools, universities, or educational institutions of a work included in a
broadcast for the use of such schools, universities or educational institutions: Provided, That such
recording must be deleted within a reasonable period after they were first broadcast: Provided,
further, That such recording may not be made from audiovisual works which are part of the general
cinema repertoire of feature films except for brief excerpts of the work;
(g) The making of ephemeral recordings by a broadcasting organization by means of its own
facilities and for use in its own broadcast;
(h) The use made of a work by or under the direction or control of the Government, by the National
Library or by educational, scientific or professional institutions where such use is in the public
interest and is compatible with fair use;
(i) The public performance or the communication to the public of a work, in a place where no
admission fee is charged in respect of such public performance or communication, by a club or
institution for charitable or educational purpose only, whose aim is not profit making, subject to
such other limitations as may be provided in the Regulations; (n)
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(j) Public display of the original or a copy of the work not made by means of a film, slide, television
image or otherwise on screen or by means of any other device or process: Provided, That either the
work has been published, or, that original or the copy displayed has been sold, given away or
otherwise transferred to another person by the author or his successor in title; and
(k) Any use made of a work for the purpose of any judicial proceedings or for the giving of
professional advice by a legal practitioner.
184.2. The provisions of this section shall be interpreted in such a way as to allow the work to be
used in a manner which does not conflict with the normal exploitation of the work and does not
unreasonably prejudice the right holder's legitimate interest.
Sec. 185. Fair Use of a Copyrighted Work. 185.1. The fair use of a copyrighted work for criticism, comment, news reporting, teaching including
multiple copies for classroom use, scholarship, research, and similar purposes is not an
infringement of copyright. Decompilation, which is understood here to be the reproduction of the
code and translation of the forms of the computer program to achieve the inter-operability of an
independently created computer program with other programs may also constitute fair use. In
determining whether the use made of a work in any particular case is fair use, the factors to be
considered shall include:
(a) The purpose and character of the use, including whether such use is of a commercial nature or is
for non-profit education purposes;
(b) The nature of the copyrighted work;
(c) The amount and substantiality of the portion used in relation to the copyrighted work as a whole;
and
(d) The effect of the use upon the potential market for or value of the copyrighted work.
185.2 The fact that a work is unpublished shall not by itself bar a finding of fair use if such finding is
made upon consideration of all the above factors.
Sec. 186. Work of Architecture. - Copyright in a work of architecture shall include the right to control
the erection of any building which reproduces the whole or a substantial part of the work either in its
original form or in any form recognizably derived from the original; Provided, That the copyright in
any such work shall not include the right to control the reconstruction or rehabilitation in the same
style as the original of a building to which the copyright relates. (n)
Sec. 187. Reproduction of Published Work. 130 | P a g e

187.1. Notwithstanding the provision of Section 177, and subject to the provisions of Subsection
187.2, the private reproduction of a published work in a single copy, where the reproduction is made
by a natural person exclusively for research and private study, shall be permitted, without the
authorization of the owner of copyright in the work.
187.2. The permission granted under Subsection 187.1 shall not extend to the reproduction of:
(a) A work of architecture in form of building or other construction;
(b) An entire book, or a substantial past thereof, or of a musical work in which graphics form by
reprographic means;
(c) A compilation of data and other materials;
(d) A computer program except as provided in Section 189; and
(e) Any work in cases where reproduction would unreasonably conflict with a normal exploitation of
the work or would otherwise unreasonably prejudice the legitimate interests of the author. (n)
Sec. 188. Reprographic Reproduction by Libraries. 188.1. Notwithstanding the provisions of Subsection 177.6, any library or archive whose activities
are not for profit may, without the authorization of the author of copyright owner, make a single
copy of the work by reprographic reproduction:
(a) Where the work by reason of its fragile character or rarity cannot be lent to user in its original
form;
(b) Where the works are isolated articles contained in composite works or brief portions of other
published works and the reproduction is necessary to supply them; when this is considered
expedient, to person requesting their loan for purposes of research or study instead of lending the
volumes or booklets which contain them; and
(c) Where the making of such a copy is in order to preserve and, if necessary in the event that it is
lost, destroyed or rendered unusable, replace a copy, or to replace, in the permanent collection of
another similar library or archive, a copy which has been lost, destroyed or rendered unusable and
copies are not available with the publisher.
188.2. Notwithstanding the above provisions, it shall not be permissible to produce a volume of a
work published in several volumes or to produce missing tomes or pages of magazines or similar
works, unless the volume, tome or part is out of stock; Provided, That every library which, by law, is
entitled to receive copies of a printed work, shall be entitled, when special reasons so require, to
reproduce a copy of a published work which is considered necessary for the collection of the library
131 | P a g e

but which is out of stock. (Sec. 13, P. D. 49a)


Sec. 189. Reproduction of Computer Program. 189.1. Notwithstanding the provisions of Section 177, the reproduction in one (1) back-up copy or
adaptation of a computer program shall be permitted, without the authorization of the author of, or
other owner of copyright in, a computer program, by the lawful owner of that computer
program: Provided, That the copy or adaptation is necessary for:
(a) The use of the computer program in conjunction with a computer for the purpose, and to the
extent, for which the computer program has been obtained; and
(b) Archival purposes, and, for the replacement of the lawfully owned copy of the computer program
in the event that the lawfully obtained copy of the computer program is lost, destroyed or rendered
unusable.
189.2. No copy or adaptation mentioned in this Section shall be used for any purpose other than the
ones determined in this Section, and any such copy or adaptation shall be destroyed in the event that
continued possession of the copy of the computer program ceases to be lawful.
189.3. This provision shall be without prejudice to the application of Section 185 whenever
appropriate. (n)
Sec. 190. Importation for Personal Purposes. 190.1. Notwithstanding the provision of Subsection 177.6, but subject to the limitation under the
Subsection 185.2, the importation of a copy of a work by an individual for his personal purposes
shall be permitted without the authorization of the author of, or other owner of copyright in, the
work under the following circumstances:
(a) When copies of the work are not available in the Philippines and:
(i) Not more than one (1) copy at one time is imported for strictly individual use only; or (ii) The
importation is by authority of and for the use of the Philippine Government; or
(iii) The importation, consisting of not more than three (3) such copies or likenesses in any one
invoice, is not for sale but for the use only of any religious, charitable, or educational society or
institution duly incorporated or registered, or is for the encouragement of the fine arts, or for any
state school, college, university, or free public library in the Philippines.
(b) When such copies form parts of libraries and personal baggage belonging to persons or families
arriving from foreign countries and are not intended for sale: Provided, That such copies do not
exceed three (3).
132 | P a g e

190.2. Copies imported as allowed by this Section may not lawfully be used in any way to violate the
rights of owner the copyright or annul or limit the protection secured by this Act, and such unlawful
use shall be deemed an infringement and shall be punishable as such without prejudice to the
proprietors right of action.
190.3. Subject to the approval of the Secretary of Finance, the Commissioner of Customs is hereby
empowered to make rules and regulations for preventing the importation of articles the importation
of which is prohibited under this Section and under treaties and conventions to which the
Philippines may be a party and for seizing and condemning and disposing of the same in case they
are discovered after they have been imported. (Sec. 30, P. D. No. 49)
CHAPTER IX
DEPOSIT AND NOTICE
Sec. 191. Registration and Deposit with National Library and the Supreme Court Library.- After the
first public dissemination of performance by authority of the copyright owner of a work falling
under Subsections 172.1, 172.2 and 172.3 of this Act, there shall, for the purpose of completing the
records of the National Library and the Supreme Court Library, within three (3) weeks, be registered
and deposited with it, by personal delivery or by registered mail, two (2) complete copies or
reproductions of the work in such form as the directors of said libraries may prescribe. A certificate
of deposit shall be issued for which the prescribed fee shall be collected and the copyright owner
shall be exempt from making additional deposit of the works with the National Library and the
Supreme Court Library under other laws. If, within three (3) weeks after receipt by the copyright
owner of a written demand from the directors for such deposit, the required copies or reproductions
are not delivered and the fee is not paid, the copyright owner shall be liable to pay a fine equivalent
to the required fee per month of delay and to pay to the National Library and the Supreme Court
Library the amount of the retail price of the best edition of the work. Only the above mentioned
classes of work shall be accepted for deposit by the National Library and the Supreme Court
Library. (Sec. 26, P. D. No. 49a)
Sec. 192. Notice of Copyright. - Each copy of a work published or offered for sale may contain a
notice bearing the name of the copyright owner, and the year of its first publication, and, in copies
produced after the creators death, the year of such death. (Sec. 27, P. D. No. 49a)
Chapter X
MORAL RIGHTS
133 | P a g e

Sec. 193. Scope of Moral Rights. - The author of a work shall, independently of the economic rights
in Section 177 or the grant of an assignment or license with respect to such right, have the right:
193.1. To require that the authorship of the works be attributed to him, in particular, the right that
his name, as far as practicable, be indicated in a prominent way on the copies, and in connection
with the public use of his work;
193.2. To make any alterations of his work prior to, or to withhold it from publication;
193.3. To object to any distortion, mutilation or other modification of, or other derogatory action in
relation to, his work which would be prejudicial to his honor or reputation; and
193.4. To restrain the use of his name with respect to any work not of his own creation or in a
distorted version of his work. (Sec. 34, P. D. No. 49)
Sec. 194. Breach of Contract. - An author cannot be compelled to perform his contract to create a
work or for the publication of his work already in existence. However, he may be held liable for
damages for breach of such contract. (Sec. 35, P. D. No. 49)
Sec. 195. Waiver of Moral Rights. - An author may waive his rights mentioned in Section 193 by a
written instrument, but no such waiver shall be valid where its effects is to permit another:
195.1. To use the name of the author, or the title of his work, or otherwise to make use of his
reputation with respect to any version or adaptation of his work which, because of alterations
therein, would substantially tend to injure the literary or artistic reputation of another author; or
195.2. To use the name of the author with respect to a work he did not create.(Sec. 36, P. D. No. 49)
Sec. 196. Contribution to Collective Work. - When an author contributes to a collective work, his
right to have his contribution attributed to him is deemed waived unless he expressly reserves
it. (Sec. 37. P. D. No. 49)
Sec. 197. Editing, Arranging and Adaptation of Work. - In the absence of a contrary stipulation at the
time an author licenses or permits another to use his work, the necessary editing, arranging or
adaptation of such work, for publication, broadcast, use in a motion picture, dramatization, or
mechanical or electrical reproduction in accordance with the reasonable and customary standards or
requirements of the medium in which the work is to be used, shall not be deemed to contravene the
author's rights secured by this chapter. Nor shall complete destruction of a work unconditionally
transferred by the author be deemed to violate such rights. (Sec. 38, P. D. No. 49)
Sec. 198. Term of Moral Rights. 198.1. The rights of an author under this chapter shall last during the lifetime of the author and for
134 | P a g e

fifty (50) years after his death and shall not be assignable or subject to license. The person or
persons to be charged with the posthumous enforcement of these rights shall be named in writing to
be filed with the National Library. In default of such person or persons, such enforcement shall
devolve upon either the author's heirs, and in default of the heirs, the Director of the National
Library.
198.2. For purposes of this Section, "Person" shall mean any individual, partnership, corporation,
association, or society. The Director of the National Library may prescribe reasonable fees to be
charged for his services in the application of provisions of this Section. (Sec. 39, P. D. No. 49)
Sec. 199. Enforcement Remedies. - Violation of any of the rights conferred by this Chapter shall
entitle those charged with their enforcement to the same rights and remedies available to a copyright
owner. In addition, damages which may be availed of under the Civil Code may also be recovered.
Any damage recovered after the creator's death shall be held in trust for and remitted to his heirs, and
in default of the heirs, shall belong to the government. (Sec. 40, P. D. No. 49)
Chapter XI
RIGHTS TO PROCEEDS IN SUBSEQUENT TRANSFERS
Sec. 200. Sale or Lease of Work. - In every sale or lease of an original work of painting or sculpture
or of the original manuscript of a writer or composer, subsequent to the first disposition thereof by
the author, the author or his heirs shall have an inalienable right to participate in the gross proceeds
of the sale or lease to the extent of five percent (5%). This right shall exist during the lifetime of the
author and for fifty (50) years after his death. (Sec. 31, P. D. No. 49)
Sec. 201. Works Not Covered. - The provisions of this Chapter shall not apply to prints, etchings,
engravings, works of applied art, or works of similar kind wherein the author primarily derives gain
from

the

proceeds

of

reproductions.(Sec.

33,

P.

D.

No.

49)

Chapter XII
RIGHTS OF PERFORMERS, PRODUCERS OF SOUNDS
RECORDINGS AND BROADCASTING ORGANIZATIONS
Sec. 202. Definitions.- For the purpose of this Act, the following terms shall have the following
meanings:
202.1. "Performers" are actors, singers, musicians, dancers, and other persons who act, sing,
135 | P a g e

declaim, play in, interpret, or otherwise perform literary and artistic work;
202.2. "Sound recording" means the fixation of the sounds of a performance or of other sounds, or
representation of sound, other than in the form of a fixation incorporated in a cinematographic or
other audiovisual work;
202.3. An "audiovisual work or fixation" is a work that consists of a series of related images which
impart the impression of motion, with or without accompanying sounds, susceptible of being made
visible and, where accompanied by sounds, susceptible of being made audible;
202.4. "Fixation" means the embodiment of sounds, or of the representations thereof, from which
they can be perceived, reproduced or communicated through a device;
202.5. "Producer of a sound recording" means the person, or the legal entity, who or which takes the
initiative and has the responsibility for the first fixation of the sounds of a performance or other
sounds, or the representation of sounds;
202.6. "Publication of a fixed performance or a sound recording" means the offering of copies of the
fixed performance or the sound recording to the public, with the consent of the right
holder: Provided, That copies are offered to the public in reasonable quality;
202.7. "Broadcasting" means the transmission by wireless means for the public reception of sounds
or

of

images

or

of

representations

thereof;

such

transmission

by

satellite

is

also "broadcasting" where the means for decrypting are provided to the public by the broadcasting
organization or with its consent;
202.8. "Broadcasting organization" shall include a natural person or a juridical entity duly
authorized to engage in broadcasting; and
202.9. "Communication to the public of a performance or a sound recording"means the transmission
to the public, by any medium, otherwise than by broadcasting, of sounds of a performance or the
representations of sounds fixed in a sound recording. For purposes of Section 209, "communication
to the public" includes making the sounds or representations of sounds fixed in a sound recording
audible to the public.
Sec. 203. Scope of Performers' Rights. - Subject to the provisions of Section 212, performers shall
enjoy the following exclusive rights:
203.1. As regards their performances, the right of authorizing:
(a) The broadcasting and other communication to the public of their performance; and
(b) The fixation of their unfixed performance.
136 | P a g e

203.2. The right of authorizing the direct or indirect reproduction of their performances fixed in
sound recordings, in any manner or form;
203.3. Subject to the provisions of Section 206, the right of authorizing the first public distribution of
the original and copies of their performance fixed in the sound recording through sale or rental or
other forms of transfer of ownership;
203.4. The right of authorizing the commercial rental to the public of the original and copies of their
performances fixed in sound recordings, even after distribution of them by, or pursuant to the
authorization by the performer; and
203.5. The right of authorizing the making available to the public of their performances fixed in
sound recordings, by wire or wireless means, in such a way that members of the public may access
them from a place and time individually chosen by them. (Sec. 42, P. D. No. 49a)
Sec. 204. Moral Rights of Performers. 204.1. Independently of a performer's economic rights, the performer, shall, as regards his live aural
performances or performances fixed in sound recordings, have the right to claim to be identified as
the performer of his performances, except where the omission is dictated by the manner of the use of
the performance, and to object to any distortion, mutilation or other modification of his
performances that would be prejudicial to his reputation.
204.2. The rights granted to a performer in accordance with Subsection 203.1 shall be maintained
and exercised fifty (50) years after his death, by his heirs, and in default of heirs, the government,
where protection is claimed. (Sec. 43, P. D. no. 49)
Sec. 205. Limitation on Right.205.1. Subject to the provisions of Section 206, once the performer has authorized the broadcasting
or fixation of his performance, the provisions of Sections 203 shall have no further application.
205.2. The provisions of Section 184 and Section 185 shall apply mutatis mutandis to
performers. (n)
Sec. 206. Additional Remuneration for Subsequent Communications or Broadcasts. - Unless
otherwise provided in the contract, in every communication to the public or broadcast of a
performance subsequent to the first communication or broadcast thereof by the broadcasting
organization, the performer shall be entitled to an additional remuneration equivalent to at least five
percent (5%) of the original compensation he or she received for the first communication or
broadcast. (n)
137 | P a g e

Sec. 207. Contract Terms. - Nothing in this Chapter shall be construed to deprive performers of the
right to agree by contracts on terms and conditions more favorable for them in respect of any use of
their performance. (n)
Chapter XIII
PRODUCERS OF SOUND RECORDINGS
Sec. 208. Scope of Right. - Subject to the provisions of Section 212, producers of sound recordings
shall enjoy the following exclusive rights:
208.1. The right to authorize the direct or indirect reproduction of their sound recordings, in any
manner or form; the placing of these reproductions in the market and the right of rental or lending;
208.2. The right to authorize the first public distribution of the original and copies of their sound
recordings through sale or rental or other forms of transferring ownership; and
208.3. The right to authorize the commercial rental to the public of the original and copies of their
sound recordings, even after distribution by them by or pursuant to authorization by the
producer. (Sec. 46, P. D. No. 49a)
Sec. 209. Communication to the Public. - If a sound recording published for commercial purposes,
or a reproduction of such sound recording, is used directly for broadcasting or for other
communication to the public, or is publicly performed with the intention of making and enhancing
profit, a single equitable remuneration for the performer or performers, and the producer of the
sound recording shall be paid by the user to both the performers and the producer, who, in the
absence of any agreement shall share equally. (Sec. 47, P. D. No. 49a)
Sec. 210. Limitation of Right. - Sections 184 and 185 shall apply mutatis mutandis to the producer of
sound

recordings. (Sec.

48,

P.

D.

No.

49a)

Chapter XIV
BROADCASTING ORGANIZATIONS
Sec. 211. Scope of Right. - Subject to the provisions of Section 212, broadcasting organizations
shall enjoy the exclusive right to carry out, authorize or prevent any of the following acts:
211.1. The rebroadcasting of their broadcasts;
211.2. The recording in any manner, including the making of films or the use of video tape, of their
broadcasts for the purpose of communication to the public of television broadcasts of the same; and
211.3. The use of such records for fresh transmissions or for fresh recording.(Sec. 52, P. D. No. 49)
138 | P a g e

Chapter XV
LIMITATIONS ON PROTECTION
Sec. 212. Limitations on Rights. - Sections 203, 208 and 209 shall not apply where the acts referred
to in those Sections are related to:
212.1. The use by a natural person exclusively for his own personal purposes;
212.2. Using short excerpts for reporting current events;
212.3. Use solely for the purpose of teaching or for scientific research; and
212.4. Fair use of the broadcast subject to the conditions under section 185.(Sec. 44, P. D. No. 49a)
Chapter XVI
TERM OF PROTECTION
Sec. 213. Term of Protection. - 213.1. Subject to the provisions of Subsections 213.2 to 213.5, the
copyright in works under Sections 172 and 173 shall be protected during the life of the author and
for fifty (50 years after his death. This rule also applies to posthumous works. (Sec. 21, First
Sentence, P. D. No. 49a)
213.2. In case of works of joint authorship, the economic rights shall be protected during the life of
the last surviving author and for fifty (50) years after his death. (Sec. 21, Second Sentence, P.D. No.
49)
213.3. In case of anonymous or pseudonymous works, the copyright shall be protected for fifty (50)
years from the date on which the work was first lawfully published: Provided, That where, before the
expiration of the said period, the author's identity is revealed or is no longer in doubt, the provisions
of Subsections 213.1 and 213.2 shall apply, as the case may be: Provided, further, That such works if
not published before shall be protected for fifty (50) years counted from the making of the
work. (Sec. 23, P. D. No. 49)
213.4. In case of works of applied art the protection shall be for a period of twenty-five (25) years
from the date of making. (Sec. 24(B), P. D. No. 49a)
213.5. In case of photographic works, the protection shall be for fifty (50) years from publication of
the work and, if unpublished, fifty (50) years from the making. (Sec. 24(C), P. D. 49a)
213.6. In case of audio-visual works including those produced by process analogous to photography
or any process for making audio-visual recordings, the term shall be fifty (50) years from date of
139 | P a g e

publication and, if unpublished, from the date of making. (Sec. 24(C), P. D. No. 49a)
Sec. 214. Calculation of Term. - The term of protection subsequent to the death of the author
provided in the preceding Section shall run from the date of his death or of publication, but such
terms shall always be deemed to begin on the first day of January of the year following the event
which gave rise to them. (Sec. 25, P. D. No. 49)
Sec. 215. Term of Protection for Performers, Producers and Broadcasting Organizations.215.1. The rights granted to performers and producers of sound recordings under this law shall
expire:
(a) For performances not incorporated in recordings, fifty (50) years from the end of the year in
which the performance took place; and
(b) For sound or image and sound recordings and for performances incorporated therein, fifty (50)
years from the end of the year in which the recording took place.
215.2. In case of broadcasts, the term shall be twenty (20) years from the date the broadcast took
place. The extended term shall be applied only to old works with subsisting protection under the
prior law. (Sec. 55, P. D. No. 49a)
Chapter XVII
INFRINGEMENT
Sec. 216. Remedies for Infringement. 216.1. Any person infringing a right protected under this law shall be liable:
(a) To an injunction restraining such infringement. The court may also order the defendant to desist
from an infringement, among others, to prevent the entry into the channels of commerce of imported
goods that involve an infringement, immediately after customs clearance of such goods.
(b) Pay to the copyright proprietor or his assigns or heirs such actual damages, including legal
costs and other expenses, as he may have incurred due to the infringement as well as the profits the
infringer may have made due to such infringement, and in proving profits the plaintiff shall be
required to prove sales only and the defendant shall be required to prove every element of cost which
he claims, or, in lieu of actual damages and profits, such damages which to the court shall appear to
be just and shall not be regarded as penalty.
(c) Deliver under oath, for impounding during the pendency of the action, upon such terms and
conditions as the court may prescribe, sales invoices and other documents evidencing sales, all
articles and their packaging alleged to infringe a copyright and implements for making them.
140 | P a g e

(d) Deliver under oath for destruction without any compensation all infringing copies or devices, as
well as all plates, molds, or other means for making such infringing copies as the court may order.
(e) Such other terms and conditions, including the payment of moral and exemplary damages, which
the court may deem proper, wise and equitable and the destruction of infringing copies of the work
even in the event of acquittal in a criminal case.
216. 2. In an infringement action, the court shall also have the power to order the seizure and
impounding of any article which may serve as evidence in the court proceedings. (Sec. 28, P. D. No.
49a)
Sec. 217. Criminal Penalties. 217.1. Any person infringing any right secured by provisions of Part IV of this Act or aiding or
abetting such infringement shall be guilty of a crime punishable by:
(a) Imprisonment of one (1) year to three (3) years plus a fine ranging from Fifty thousand pesos
(P50,000) to One hundred fifty thousand pesos (P150,000) for the first offense.
(b) Imprisonment of three (3) years and one (1) day to six (6) years plus a fine ranging from One
hundred fifty thousand pesos (P150,000) to Five hundred thousand pesos (P500,000) for the second
offense.
(c) Imprisonment of six (6) years and one (1) day to nine (9) years plus a fine ranging from Five
hundred thousand pesos (P500,000) to One million five hundred thousand pesos (P1,500,000) for
the third and subsequent offenses.
(d) In all cases, subsidiary imprisonment in cases of insolvency.
217.2. In determining the number of years of imprisonment and the amount of fine, the court shall
consider the value of the infringing materials that the defendant has produced or manufactured and
the damage that the copyright owner has suffered by reason of the infringement.
217.3. Any person who at the time when copyright subsists in a work has in his possession an article
which he knows, or ought to know, to be an infringing copy of the work for the purpose of:
(a) Selling, letting for hire, or by way of trade offering or exposing for sale, or hire, the article;
(b) Distributing the article for purpose of trade, or for any other purpose to an extent that will
prejudice the rights of the copyright owner in the work; or
(c) Trade exhibit of the article in public, shall be guilty of an offense and shall be liable on
conviction to imprisonment and fine as above mentioned. (Sec. 29, P. D. No. 49a)
Sec. 218. Affidavit Evidence. 141 | P a g e

218.1. In an action under this Chapter, an affidavit made before a notary public by or on behalf of
the owner of the copyright in any work or other subject matter and stating that:
(a) At the time specified therein, copyright subsisted in the work or other subject matter;
(b) He or the person named therein is the owner of the copyright; and
(c) The copy of the work or other subject matter annexed thereto is a true copy thereof, shall be
admitted in evidence in any proceedings for an offense under this Chapter and shall be prima facie
proof of the matters therein stated until the contrary is proved, and the court before which such
affidavit is produced shall assume that the affidavit was made by or on behalf of the owner of the
copyright.
218.2. In an action under this Chapter.
(a) Copyright shall be presumed to subsist in the work or other subject matter to which the action
relates if the defendant does not put in issue the question whether copyright subsists in the work or
other subject matter; and
(b) Where the subsistence of the copyright is established, the plaintiff shall be presumed to be the
owner of the copyright if he claims to be the owner of the copyright and the defendant does not put
in issue the question of his ownership.
(c) Where the defendant, without good faith, puts in issue the questions of whether copyright subsists
in a work or other subject matter to which the action relates, or the ownership of copyright in such
work or subject matter, thereby occasioning unnecessary costs or delay in the proceedings, the court
may direct that any costs to the defendant in respect of the action shall not be allowed by him and
that any costs occasioned by the defendant to other parties shall be paid by him to such other
parties. (n)
Sec. 219. Presumption of Authorship. 219.1. The natural person whose name is indicated on a work in the usual manner as the author
shall, in the absence of proof to the contrary, be presumed to be the author of the work. This
provision shall be applicable even if the name is a pseudonym, where the pseudonym leaves no
doubt as to the identity of the author.
219.2. The person or body, corporate whose name appears on an audio-visual work in the usual
manner shall, in the absence of proof to the contrary, be presumed to be the maker of said work. (n)
Sec. 220. International Registration of Works. - A statement concerning a work, recorded in an
international register in accordance with an international treaty to which the Philippines is or may
142 | P a g e

become a party, shall be construed as true until the contrary is proved except:
220.1. Where the statement cannot be valid under this Act or any other law concerning intellectual
property.
220.2. Where the statement is contradicted by another statement recorded in the international
register. (n)
Chapter XVIII
SCOPE OF APPLICATION
Sec. 221. Points of Attachment for Works under Sections 172 and 173. 221.1. The protection afforded by this Act to copyrightable works under Sections 172 and 173 shall
apply to:
(a) Works of authors who are nationals of, or have their habitual residence in the Philippines;
(b) Audio-visual works the producer of which has his headquarters or habitual residence in the
Philippines;
(c) Works of architecture erected in the Philippines or other artistic works incorporated in a
building or other structure located in the Philippines;
(d) Works first published in the Philippines; and
(e) Works first published in another country but also published in the Philippines within thirty days,
irrespective of the nationality or residence of the authors.
221.2. The provisions of this Act shall also apply to works that are to be protected by virtue of and in
accordance with any international convention or other international agreement to which the
Philippines is a party. (n)
Sec. 222. Points of Attachment for Performers. - The provisions of this Act on the protection of
performers shall apply to:
222.1. Performers who are nationals of the Philippines;
222.2. Performers who are not nationals of the Philippines but whose performances:
(a) Take place in the Philippines; or
(b) Are incorporated in sound recordings that are protected under this Act; or
(c) Which has not been fixed in sound recording but are carried by broadcast qualifying for
protection under this Act. (n)
Sec. 223. Points of Attachment for Sound Recordings. - The provisions of this Act on the protection
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of sound recordings shall apply to:


223.1. sound recordings the producers of which are nationals of the Philippines; and
223.2. Sound recordings that were first published in the Philippines. (n)
Sec. 224. Points of Attachment for Broadcasts. 224.1. The provisions of this Act on the protection of broadcasts shall apply to:
(a) Broadcasts of broadcasting organizations the headquarters of which are situated in the
Philippines; and
(b) Broadcasts transmitted from transmitters situated in the Philippines.
224.2. The provisions of this Act shall also apply to performers who, and to producers of sound
recordings and broadcasting organizations which, are to be protected by virtue of and in accordance
with any international convention or other international agreement to which the Philippines is a
party. (n)
Chapter XIX
INSTITUTION OF ACTIONS
Sec. 225. Jurisdiction. - Without prejudice to the provisions of Subsection 7.1(c), actions under this
Act shall be cognizable by the courts with appropriate jurisdiction under existing law. (Sec. 57, P. D.
No. 49a)
Sec. 226. Damages. - No damages may be recovered under this Act after four (4) years from the time
the cause of action arose. (Sec. 58, P. D. No. 49)
Chapter XX
MISCELLANEOUS PROVISIONS
Sec. 227. Ownership of Deposit and Instruments. - All copies deposited and instruments in writing
filed with the National Library and the Supreme Court Library in accordance with the provisions of
this Act shall become the property of the Government. (Sec. 60, P. D. No. 49)
Sec. 228. Public Records. - The section or division of the National Library and the Supreme Court
Library charged with receiving copies and instruments deposited and with keeping records required
under this Act and everything in it shall be opened to public inspection. The Director of the National
Library is empowered to issue such safeguards and regulations as may be necessary to implement
this Section and other provisions of this Act. (Sec. 61, P. D. No. 49)
Sec. 229. Copyright Division Fees. - The Copyright Section of the National Library shall be
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classified as a Division upon the effectivity of this Act. The National Library shall have the power to
collect, for the discharge of its services under this Act, such fees as may be promulgated by it from
time to time subject to the approval of the Department Head. (Sec. 62, P. D. 49a)
PART V
Final Provisions
Sec. 230. Equitable Principles to Govern Proceedings. - In all inter partes proceedings in the Office
under this Act, the equitable principles of laches, estoppel, and acquiescence where applicable, may
be considered and applied.(Sec. 9-A, R. A. No. 165)
Sec. 231. Reverse Reciprocity of Foreign Laws. - Any condition, restriction, limitation, diminution,
requirement, penalty or any similar burden imposed by the law of a foreign country on a Philippine
national seeking protection of intellectual property rights in that country, shall reciprocally be
enforceable upon nationals of said country, within Philippine jurisdiction. (n)
Sec. 232. Appeals. 232.1 Appeals from decisions of regular courts shall be governed by the Rules of Court. Unless
restrained by a higher court, the judgment of the trial court shall be executory even pending appeal
under such terms and conditions as the court may prescribe.
232.2. Unless expressly provided in this Act or other statutes, appeals from decisions of
administrative officials shall be provided in the Regulations. (n)
Sec. 233. Organization of the Office; Exemption from the Salary Standardization Law and the
Attrition Law. 233.1. The Office shall be organized within one (1) year after the approval of this Act. It shall not be
subject to the provisions of Republic Act. No. 7430.
233.2. The Office shall institute its own compensation structure: Provided, That the Office shall
make its own system conform as closely as possible with the principles provided for under Republic
Act No. 6758. (n)
Sec. 234. Abolition of the Bureau of Patents, Trademarks, and Technology Transfer. - The Bureau of
Patents, Trademarks, and Technology Transfer under the Department of Trade and Industry is hereby
abolished. All unexpended funds and fees, fines, royalties and other charges collected for the
calendar year, properties, equipment and records of the Bureau of Patents, Trademarks and
Technology Transfer, and such personnel as may be necessary are hereby transferred to the Office.
Personnel not absorbed or transferred to the Office shall enjoy the retirement benefits granted under
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existing law, otherwise, they shall be paid the equivalent of one month basic salary for every year of
service, or the equivalent nearest fractions thereof favorable to them on the basis of the highest
salary received. (n)
Sec. 235. Applications Pending on Effective Date of Act. 235.1. All applications for patents pending in the Bureau of Patents, Trademarks and Technology
Transfer shall be proceeded with and patents thereon granted in accordance with the Acts under
which said applications were filed, and said Acts are hereby continued to be enforced, to this extent
and for this purpose only, notwithstanding the foregoing general repeal thereof: Provided, That
applications for utility models or industrial designs pending at the effective date of this Act, shall be
proceeded with in accordance with the provisions of this Act, unless the applicants elect to prosecute
said applications in accordance with the Acts under which they were filed.
235.2. All applications for registration of marks or trade names pending in the Bureau of Patents,
Trademarks and Technology Transfer at the effective date of this Act may be amended, if practicable
to bring them under the provisions of this Act. The prosecution of such applications so amended and
the grant of registrations thereon shall be proceeded with in accordance with the provisions of this
Act. If such amendments are not made, the prosecution of said applications shall be proceeded with
and registrations thereon granted in accordance with the Acts under which said applications were
filed, and said Acts hereby continued in force to this extent for this purpose only, notwithstanding the
foregoing general repeal thereof. (n)
Sec. 236. Preservation of Existing Rights. - Nothing herein shall adversely affect the rights on the
enforcement of rights in patents, utility models, industrial designs, marks and works, acquired in
good faith prior to the effective date of this Act. (n)
Sec. 237. Notification on Berne Appendix. - The Philippines shall by proper compliance with the
requirements set forth under the Appendix of the Berne Convention (Paris Act, 1971) avail itself of
the special provisions regarding developing countries, including provisions for licenses grantable by
competent authority under the Appendix. (n)
Sec. 238. Appropriations. - The funds needed to carry out the provisions of this Act shall be charged
to the appropriations of the Bureau of Patents, Trademarks, and Technology Transfer under the
current General Appropriations Act and the fees, fines, royalties and other charges collected by the
Bureau for the calendar year pursuant to Sections 14.1 and 234 of this Act. Thereafter such sums as
may be necessary for its continued implementations shall be included in the annual General
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Appropriations Act. (n)


Sec. 239. Repeals. 239.1. All Acts and parts of Acts inconsistent herewith, more particularly Republic Act No. 165, as
amended; Republic Act no. 166, as amended; and Articles 188 and 189 of the Revised Penal Code;
Presidential Decree No. 49, including Presidential Decree No. 285, as amended, are hereby repealed.
239.2. Marks registered under Republic Act No. 166 shall remain in force but shall be deemed to
have been granted under this Act and shall be due for renewal within the period provided for under
this Act and, upon renewal, shall be reclassified in accordance with the International Classification.
Trade names and marks registered in the Supplemental Register under Republic Act No. 166 shall
remain in force but shall no longer be subject to renewal.
239.3. The provisions of this Act shall apply to works in which copyright protection obtained prior to
the effectivity of this Act is subsisting: Provided, That the application of this Act shall not result in
the diminution of such protection. (n)
Sec. 240. Separability. - If any provision of this Act or the application of such provision to any
circumstances is held invalid, the remainder of the Act shall not be affected thereby. (n)
Sec. 241. Effectivity. - This Act shall take effect on 1 January 1998. (n)
This Act, which is a consolidation of S. No. 1719 and H. No. 8098, was finally passed by the Senate
and the House of Representatives on June 4, 1997 and June 5, 1997, respectively.

[REPUBLIC ACT NO. 9150]


AN ACT PROVIDING FOR THE PROTECTION OF LAYOUT-DESIGNS
(TOPOGRAPHIES) OF INTEGRATED CIRCUITS, AMENDING FOR THE PURPOSE
CERTAIN SECTIONS OF REPUBLIC ACT NO. 8293, OTHERWISE KNOWN AS THE

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INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES AND FOR OTHER


PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
SECTION. 1. Sections 112, 113, 114, 116, 117, 118, 119 and 120 under Chapter XIII of
R.A. No. 8293 are hereby amended to read as follows:
CHAPTER XIII
INDUSTRIAL DESIGN AND LAYOUT-DESIGNS (TOPOGRAPHIES) OF INTEGRATED
CIRCUITS
SEC. 12. Definition of Terms:
1. An Industrial Design is any composition of lines or colors or any three-dimensional
form, whether or not associated with lines or colors:Provided, That such composition or
form gives a special appearance to and can serve as pattern for an industrial product or
handicraft;
2. Integrated Circuit means a product, in its final form, or an intermediate form, in which
the elements, at least one of which is an active element, and some or all of the
interconnections are integrally formed in and/or on a piece of material, and which is
intended to perform an electronic function; and
3. Layout-Design is synonymous with Topography and means the three-dimensional
disposition, however expressed, of the elements, at least one of which is an active
element, and of some or all of the interconnections of an integrated circuit, or such a
three-dimensional disposition prepared for an integrated circuit intended for
manufacture.
SEC. 113. Substantive Conditions for Protection. 113.1. Only industrial designs that
are new or ornamental shall benefit from protection under this Act.
113.2. Industrial designs dictated essentially by technical or functional considerations to
obtain a technical result or those that are contrary to public order, health or morals shall
not be protected.
113.3. Only layout-designs of integrated circuits that are original shall benefit from
protection under this Act. A layout-design shall be considered original if it is the result of
its creators own intellectual effort and is not commonplace among creators of layoutdesigns and manufacturers of integrated circuits at the time of its creation.

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113.4. A layout-design consisting of a combination of elements and interconnections


that are commonplace shall be protected only if the combination, taken as a whole, is
original.
SEC. 114. Contents of the Application. 114.1. Every application for registration of an
industrial design or layout-design shall contain:
(a) A request for registration of the industrial design or layout-design;
(b) Information identifying the applicant;
(c) An indication of the kind of article of manufacture or handicraft to which the
industrial design or layout-design shall be applied;
(d) A representation of the article of manufacture or handicraft by way of drawings,
photographs or adequate graphic representation of the industrial design or of the layoutdesign as applied to the article of manufacture or handicraft which clearly and fully
discloses those features for which protection is claimed; and
(e) The name and address of the creator, or where the applicant is not the creator, a
statement indicating the origin of the right to the industrial design or layout-design
registration.
114.2. The application may be accompanied by a specimen of the article embodying
the industrial design or layout-design and shall be subject to the payment of the
prescribed fee.
SEC. 116. Examination. 116.1. The Office shall accord as the filing date the date of
receipt of the application containing indications allowing the identity of the applicant to
be established and a representation of the article embodying the industrial design or the
layout-design or a pictorial representation thereof.
116.2. If the application does not meet these requirements, the filing date should be
that date when all the elements specified in Sec. 114 are filed or the mistakes corrected.
Otherwise, if the requirements are not complied within the prescribed period, the
application shall be considered withdrawn.
116.3. After the application has been accorded a filing date and the required fees paid
on time, the applicant shall comply with the requirements of Sec. 114 within the
prescribed period, otherwise the application shall be considered withdrawn.
116.4. The Office shall examine whether the industrial design or layout-design complies
with requirements of Sec. 112 (Definitions) and Sec. 113 (Substantive Conditions for
Protection).

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SEC. 117. Registration. 117.1 Where the Office finds that the conditions referred to
in Sec. 113 are fulfilled, it shall order that registration be effected in the industrial design
or layout-design register and cause the issuance of an industrial design or layout-design
certificate of registration; otherwise, it shall refuse the application.
117.2. The form and contents of an industrial design or layout-design certificate shall be
established by the Regulations: Provided, That the name and address of the creator
shall be mentioned in every case.
117.3. Registration shall be published in the form and within the period fixed by the
Regulations.
117.4. The Office shall record in the register any change in the identity of the proprietor
of the industrial design or layout-design or his representative, if proof thereof is
furnished to it. A fee shall be paid, with the request to record the change in the identity
of the proprietor. If the fee is not paid, the request shall be deemed not to have been
filed. In such case, the former proprietor and the former representative shall remain
subject to the rights and obligations as provided in this Act.
117.5. Anyone may inspect the Register and the files of registered industrial designs or
layout-designs including files of cancellation proceedings.
SEC. 118. The Term of Industrial Design or Layout-Design Registration. 118.1. The
registration of an industrial design shall be for a period of five (5) years from the filing
date of the application.
118.2. The registration of an industrial design may be renewed for not more than two
(2) consecutive periods of five (5) years each, by paying the renewal fee.
118.3. The renewal fee shall be paid within twelve (12) months preceding the expiration
of the period of registration. However, a grace period of six (6) months shall be granted
for payment of the fees after such expiration, upon payment of a surcharge.
118.4. The Regulations shall fix the amount of renewal fee, the surcharge and other
requirements regarding the recording of renewals of registration.
118.5. Registration of a layout-design shall be valid for a period of ten (10) years,
without renewal, and such validity to be counted from the date of commencement of the
protection accorded to the layout-design. The protection of a layout-design under this
Act shall commence:
a) on the date of the first commercial exploitation, anywhere in the world, of the layoutdesign by or with the consent of the right holder:Provided, That an application for
registration is filed with the Intellectual Property Office within two (2) years from such
date of first commercial exploitation; or

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b) on the filing date accorded to the application for the registration of the layout-design
if the layout-design has not been previously exploited commercially anywhere in the
world.
SEC. 119. Application of Other Sections and Chapters. 119.1. The following
provisions relating to patents shall apply mutatis mutandis to an industrial design
registration:
SEC. 21 Novelty;
SEC. 24 Prior art: Provided, That the disclosure is contained in printed documents
or in any tangible form;
SEC. 25 Non-prejudicial Disclosure,
SEC. 28 Right to a Patent;
SEC. 29 First to File Rule;
SEC. 30 Inventions Created Pursuant to a Commission;
SEC. 31 Right of Priority: Provided, That the application for industrial design shall be
filed within six (6) months from the earliest filing date of the corresponding foreign
application;
SEC. 33 Appointment of Agent or Representative;
SEC. 51 Refusal of the Application;
SEC.S 56 to 60 Surrender, Correction of and Changes in Patent;
CHAPTER VII Remedies of a Person with a Right to Patent;
CHAPTER VIII Rights of Patentees and Infringement of Patents; and
CHAPTER XI Assignment and Transmission of Rights.
119.2. If the essential elements of an industrial design which is the subject of an
application have been obtained from the creation of another person without his consent,
protection under this Chapter cannot be invoked against the injured party.
119.3. The following provisions relating to patents shall apply mutatis mutandis to a
layout-design of integrated circuits registration:
SEC. 28 Right to a Patent;

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SEC. 29 First to File Rule;


SEC. 30 Inventions Created Pursuant to a Commission;
SEC. 33 Appointment of Agent or Representative;
SEC. 56 Surrender of Patent;
SEC. 57 Correction of Mistakes of the Office;
SEC. 58 Correction of Mistakes in the Application;
SEC. 59 Changes in Patents;
SEC. 60 Form and Publication of Amendment;
CHAPTER VII Remedies of a Person with a Right to Patent;
CHAPTER VIII Rights of Patentees and Infringement of Patents: Provided, That the
layout-design rights and limitation of layout-design rights provided hereunder shall
govern;
CHAPTER X Compulsory Licensing;
CHAPTER XI Assignment and Transmission of Rights.
119.4. Rights Conferred to the Owner of a Layout-Design Registration. The owner of
a layout-design registration shall enjoy the following rights:
(1) to reproduce, whether by incorporation in an integrated circuit or otherwise, the
registered layout-design in its entirety or any part thereof, except the act of reproducing
any part that does not comply with the requirement of originality; and
(2) to sell or otherwise distribute for commercial purposes the registered layout-design,
an article or an integrated circuit in which the registered layout-design is incorporated.
119.5. Limitations of Layout Rights. The owner of a layout design has no right to
prevent third parties from reproducing, selling or otherwise distributing for commercial
purposes the registered layout-design in the following circumstances:
(1) Reproduction of the registered layout-design for private purposes or for the sole
purpose of evaluation, analysis, research or teaching;
(2) Where the act is performed in respect of a layout-design created on the basis of
such analysis or evaluation and which is itself original in the meaning as provided
herein;
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(3) Where the act is performed in respect of a registered layout-design, or in respect of


an integrated circuit in which such a layout-design is incorporated, that has been put on
the market by or with the consent of the right holder;
(4) In respect of an integrated circuit where the person performing or ordering such an
act did not know and had no reasonable ground to know when acquiring the integrated
circuit or the article incorporating such an integrated circuit, that it incorporated an
unlawfully reproduced layout-design: Provided, however, That after the time that such
person has received sufficient notice that the layout-design was unlawfully reproduced,
that person may perform any of the said acts only with respect to the stock on hand or
ordered before such time and shall be liable to pay to the right holder a sum equivalent
to at least 5% of net sales or such other reasonable royalty as would be payable under
a freely negotiated license in respect of such layout-design; or
(5) Where the act is performed in respect of an identical layout design which is original
and has been created independently by a third party.
SEC. 120. Cancellation of Design Registration. 120.1. At any time during the term of
the industrial design registration, any person upon payment of the required fee, may
petition the Director of Legal Affairs to cancel the industrial design on any of the
following grounds:
(a) If the subject matter of the industrial design is not registerable within the terms of
Sections 112 and 113;
(b) If the subject matter is not new; or
(c) If the subject matter of the industrial design extends beyond the content of the
application as originally filed.
120.2. Where the grounds for cancellation relate to a part of the industrial design,
cancellation may be effected to such extent only. The restriction may be effected in the
form of an alteration of the effected features of the design.
120.3. Grounds for Cancellation of Layout-Design of Integrated Circuits. Any
interested person may petition that the registration of a layout-design be cancelled on
the ground that:
(i) the layout-design is not protectable under this Act;
(ii) the right holder is not entitled to protection under this Act; or
(iii) where the application for registration of the layout-design, was not filed within two
(2) years from its first commercial exploitation anywhere in the world.

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Where the grounds for cancellation are established with respect only to a part of the
layout-design, only the corresponding part of the registration shall be cancelled.
Any cancelled layout-design registration or part thereof, shall be regarded as null and
void from the beginning and may be expunged from the records of the Intellectual
Property Office. Reference to all cancelled layout-design registration shall be published
in the IPO Gazette.
SEC. 2. Implementing Rules and Regulations. The Intellectual Property Office may
issue Regulations prescribing details for the implementation of this law. The Regulations
may, in particular, provide for the payment of fees in connection with applications for the
registration of layout-designs of integrated circuits and matters related thereto, including
Administrative Instructions relating to the procedures and other functions of the
responsible unit duly designated by the Director General.
SEC. 3. Applicability. The provisions of this Act shall apply to layout-designs of
integrated circuits that were commercially exploited anywhere in the world from and
after January 1998 provided they meet the conditions for protection under this Act.
SEC. 4. Repealing Clause. All acts and parts of acts inconsistent herewith are hereby
repealed or amended accordingly.
SEC. 5. Separability Clause. If any provision of this Act or the application of such
provision to any circumstance is held invalid, the remainder of this Act shall not be
affected thereby.
SEC. 6. Effectivity. This Act shall take effect fifteen (15) days after its publication in
two (2) newspapers of general circulation.

RA 10173

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https://www.google.com.ph/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&uact=8&ved=0ahUKEwi47vag7f3LAhX
FJ6YKHQHFCKoQFggsMAM&url=http%3A%2F%2Fwww.gov.ph
%2F2012%2F08%2F15%2Frepublic-act-no10173%2F&usg=AFQjCNGMJN5NMpvZeCn_wUK9azLNdRh39w
RA 10175
https://www.google.com.ph/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0ahUKEwi28KKE8P3LAh
WDGpQKHQqnDv4QFggjMAI&url=http%3A%2F%2Fwww.gov.ph
%2F2012%2F09%2F12%2Frepublic-act-no10175%2F&usg=AFQjCNHKbzDjiugfNV7bJaUKZLKmTETPxQ&sig2=ABy2FtUW3wBb8od
hS5REAA
RA 8792
http://www.wipo.int/wipolex/en/text.jsp?file_id=225417
RA 8293
http://www.wipo.int/wipolex/en/text.jsp?file_id=129343
RA 9150
https://www.google.com.ph/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwiY9cO77_3LAhWFFJQKHS0DAv
0QFgghMAE&url=http%3A%2F%2Fwww.gov.ph%2F2001%2F08%2F06%2Frepublic-act-no9150%2F&usg=AFQjCNGETWJ8PWztWAhrlKgZWUgbE2AVkQ&sig2=eZk2Rrel1_p3X6YzaNgkg&cad=rja

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