RA NO 165: June 20, 1947AN ACT CREATING A PATENT OFFICE, PRESCRIBING ITS POWERS AND DUTIES,REGUATING T!E ISSUANCE OF PATENTS, AND APPROPRIATING FUNDS T!EREFORC!APTER I " O#$%n&'%(&)n %n* O+e#%(&)nSe,(&)n 1- Patent Office- - There is hereby created a "Patent Office" under the executive supervision of the Department of Justice, where all records, books, drawins, specifications, and other papers and thins pertaininto patents shall be safely kept and preserved!Se,(&)n 2- Officers and employees of the Patent Office- - The Patent Office shall be under the direction of a Director who shall have an assistant to be known as "ssistant Director! The Director and "ssistant Director shallbe appointed by the President with the consent of the #ommission on "ppointments of the #onress of the Philippines, and shall hold office durin ood behavior! The Director shall receive a salary of seven thousand two hundred pesos a year, and the "ssistant Director a salary of six thousand pesos a year!To carry into effect the provisions of this "ct, there shall also be in said office such other officers and employeesas may be appointed by the $ecretary of Justice upon recommendation of the Director!The term "Office" used in this "ct means that Patent Office!The term "Director" used in this "ct refers to the Director of Patents or the "ssistant Director of Patents when actin as or performin the duties of the Director!Se,(&)n .- Special technical and scientific assistance- - The Director is empowered to obtain the assistance of technical, scientific or other %ualified officers or employees of other departments, bureaus, offices, aencies and instrumentalities of the &overnment, includin corporations owned, controlled or operated by the &overnment, when deemed necessary in the consideration of any matter submitted to the Office relative to the enforcement ofthe provisions of this "ct!Se,(&)n 4- Seal of Office- - The Office shall have a seal with which patents and other papers issued by it shall beauthenticated! The form and desin of the seal shall be approved by the President of the Philippines!Se,(&)n 5- Publication of laws and rules- - The Director shall print, or cause to be printed, and make available for distribution, pamphlet copies of the laws and of the rules and reulations of the Office, and may print circulars of information relatin to matters within the 'urisdiction of the Office!Se,(&)n 6- Publication of certain matters in the Official Gazette- - There shall be published in the Official &a(ette a suitable view of the drawin, if there be a drawin, and the claims of each patent issued) the rules and reulations duly promulated and the amendments thereto) an annual index of the names of investors and patentees and the title of the inventions covered by the patents issued durin each fiscal year) all notices and decisions re%uired under this "ct to be published) and such other information relatin to patents and other matters within the 'urisdiction of the Office, as may, in the discretion of the Director, be useful to the public!C!APTER II " In/en(&)n0 P%(en(%12eSe,(&)n 7- Inventions patentable- - "ny invention of a new and useful machine, manufactured product or substance, process, or an improvement of any of the foreoin, shall be patentable!Se,(&)n 3- Inventions not patentable- - "n invention shall not be patentable if it is contrary to public order or morals, or to public health or welfare, or if it constitutes a mere idea, scientific principle or abstract theorem not embodied in an invention as specified in section seven hereof, or any process not directed to the makin or improvin of a commercial product!1Se,(&)n 9- Invention not considered new or patentable- - "n invention shall not be considered new or capable of bein patented if it was known or used by others in the Philippines before the invention thereof by the inventor named in an application for patent for the invention) or if it was patented or described in any printed publication in the Philippines or any forein country more than one year before the application for a patent therefor) or if it had been in public use or on sale in the Philippines for more than one year before the applicationfor a patent therefor) or if it is the sub'ect matter of a validly issued patent in the Philippines ranted on an application filed before the filin of the application for patent therefor!C!APTER III " A++2&,%(&)n 4)# P%(en(Se,(&)n 10- Right to patent- - The riht to the patent belons to the true and actual inventor, his heirs, leal representatives or assins! *f two or more persons have an invention 'ointly, the riht to the patent belons to them 'ointly! *f two or more persons have made the invention separately and independently of each other, the riht to the patent shall belon to the person who is the first to file an application for such invention, unless the contrary is shown!Se,(&)n 11- Applications by non-residents- - "ny person filin an application for patent who is not a resident of the Philippines must appoint an aent or representative in the Philippines upon whom notice or process relatin to the application for patent may be served! *n the event of death, absence or inability of the aent or representative, a new aent or representative must be appointed and notice thereof must be filed in the Office! +pon failure to maintain an aent or representative of record in this Office, service on the Director shall be deemed sufficient!Se,(&)n 12- ho may apply for patent- - "n application for patent may be filed only by the inventor, his heirs, leal representatives or assins!Se,(&)n 1.- !he application- - The application for patent shall be in ,nlish or $panish, or in the national lanuae with its correspondin ,nlish translation, and sined by the applicant, and shall include a statement ivin the name, address, and citi(enship or nationality of the applicant and of the inventor, if the applicant is not the inventor, and-.a/ " specification).b/ Drawins, where the invention can be shown by drawins).c/ Power of attorney if the filin is throuh an attorney).d/ The assinment or a certified copy of the assinment of the invention for recordin, where the application is filed by one who derives his title from the inventor, or proof of title if the derivation is not by assinment).e/ " sworn statement by the inventor of his inventorship) or such sworn statement may be made by his heirs or leal representatives in case of death or incapacity of the inventor) however, such sworn statement will not be re%uired if a certified copy of a previously filed forein application containin thesame is filed).f/ The appointment of a resident aent or representative in cases comin under section eleven hereof) and./ The re%uired fee!Se,(&)n 14- !he specification- - The specification shall include-.a/ The title of the invention).b/ " brief statement of its nature and purpose)2.c/ " brief explanation of the drawins, where there are drawins).d/ " complete and detailed description of the invention in such full, clear, concise and exact terms as to enable any person skilled in the art or science to which the invention relates to make and practice theinvention) and.e/ " distinct and explicit claim or claims of the sub'ect matter which the applicant claims as new and seeks to have patented!Se,(&)n 15- Applications previously filed abroad- - "n application for patent for an invention filed in this country by any person who has previously reularly filed an application for a patent for the same invention in a forein country which, by treaty, convention, or law, affords similar privilees to citi(ens of the Philippines shallhave the same force and effect as the same applicant would have if filed in this country on the date on which the application for patent for the same invention was first filed in such forein country- Provided, That the application in this country is filed within twelve months from the earliest date on which any such forein application was filed, and a certified copy of the forein application toether with a translation thereof into ,nlish, if not in the ,nlish lanuae, is filed within six months from the date of filin in the Philippines, unless the Director for ood cause shown shall extend the time for filin such certified copy!C!APTER I5 " I00u%n,e )4 P%(en(Se,(&)n 16- "ormal e#amination of the application- - 0hen an application for patent has been filed the Director shall determine whether it complies with the formal re%uirements! *f the application is defective in this respect the applicant shall be notified on the specific defects and a time fixed, not less than four months, within which such defects may be remedied!*f the applicant fails to re%uest reconsideration or to remedy the defects within the time fixed by the Director, or within such additional time, not exceedin four months, as may be ranted, the application shall be denied!Se,(&)n 17- $ultiple inventions in one application- - *f several independent inventions which are not so closelyrelated as to be proper in one application are claimed, the Director may re%uire the application to be restricted toa sinle invention in the same manner as notifications of defects in the application! " later application filed for an invention divided out shall be considered as havin been filed on the same day as the first application provided the later application is filed within four months after the re%uirement to divide becomes final, or withinsuch additional time, not exceedin four months, as may be ranted!Se,(&)n 13- Issuance of patent- - *f the oriinal or corrected application is in order, the Director shall issue the patent and shall, as soon as practicable, make the publication re%uired by section six, #hapter * hereof!Se,(&)n 19- %ow issued- - The patent shall be issued in the name of the 1epublic of the Philippines under the seal of the Office and shall be sined by the Director, and reistered toether with the specification and drawins, if any, in books and records of the Office to be kept for the purpose!Se,(&)n 20- &ontent of patent- - The patent shall contain the patent number, the title of the invention, the name and residence of the inventor and of the patentee if the patentee be other than the inventor, the date on which theapplication was filed, the date on which it is issued, and a rant to the patentee, his heirs or assins, of the exclusive riht to the invention throuhout the 1epublic of the Philippines for the term thereof! " copy of the specification and drawins shall be annexed to the patent and be a part thereof!C!APTER 5 " Te#6 )4 P%(en(Se,(&)n 21- !erm of patent- - The term of a patent shall bein on the date when the patent is issued as shown on the face thereof and shall expire seventeen years thereafter! 2owever, a patent shall cease to be in force and effect of the patentee fails to pay the prescribed annual fees within the prescribed times hereinafter provided or if the patent is cancelled in accordance with the provisions of this "ct!3Se,(&)n 22- Annual fees- - The first annual fee on a patent shall be due and payable on the expiration of four years from the date of issue! *n a similar manner, annual fees on subsistin patents shall be due and payable on the fifth and each subse%uent anniversary of the date of issue! *f any annual fee is not paid within the prescribed time, a notice of the non-payment shall be published in the Official &a(ette and the patentee shall have six months from the date of the publication to pay the fee toether with the surchare re%uired for the delayed payment! " notice of the lapsin of a patent for non-payment of any annual fee shall be published in the Official &a(ette!Se,(&)n 2.- Reinstatement of a lapsed patent- - 0ithin two years from the date on which the first unpaid annualfee was due, a patent which has lapsed for non-payment of any annual fee may be reinstated upon payment of all annual fees then due and the surchare for reinstatement, and upon proof satisfactory to the Director that such non-payment was due to fraud, accident, mistake or excusable nelience- Provided, however, That such reinstatement shall not pre'udice the rihts ac%uired by a third person while the patent was not in force!C!APTER 5I " Su##en*e#, C)##e,(&)n %n* A6en*6en(0 )4 P%(en(Se,(&)n 24- Surrender of patent- - "ny patentee, with the consent of all persons havin rants or licenses or other riht, 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 formin part thereof to the Director for cancellation!Se,(&)n 25- &orrection of mista'es of Office- - The Director shall have the power to correct without fee any mistake in a patent incurred throuh the fault of the Office when clearly disclosed by the records thereof, to make the patent conform to the records!Se,(&)n 26- &orrection of mista'e of application- - On payment of the prescribed fee the Director is authori(ed to correct any mistake in a patent of a formal or clerical nature, not incurred throuh the fault of the Office!Se,(&)n 27- "orm and publication of amendment- - "mendment or correction of a patent as provided in sections twenty-five and twenty-six hereof, shall be accomplished by a certificate of such amendment or correction authenticated by the seal of the Office and sined by the Director, which certificate shall be attached to the patent if the patent has been returned to the Director! 3otice of such amendment or correction shall be published in the Official &a(ette, and copies of the patent furnished by the Office shall include a copy of the certificate of the amendment or correction!C!APTER 5II " C%n,e22%(&)n )4 P%(en(0Se,(&)n 23- General grounds for cancellation- - "ny person may on payment of the re%uired fee petition the Director within three years from the date of publication of the issue of the patent in the Official &a(ette, to cancel the patent or any claim thereof, on any of the followin rounds-.a/ That the invention is not new or patentable in accordance with sections seven, eiht and nine, #hapter ** hereof).b/ That the specification does not comply with the re%uirement of section fourteen, #hapter *** hereof) or.c/ That the person to whom the patent was issued was not the true and actual inventor or did not derivehis rihts from the true and actual inventor!Se,(&)n 29- hen patent may be cancelled at any time- - " petition to cancel a patent on any of the rounds specified in the next precedin section may be filed at any time by the $olicitor &eneral!Se,(&)n .0- Re(uirements of the petition- - The petition for cancellation must be in writin and verified by the petitioner or by any person on his behalf who knows the facts, and shall specify the rounds upon which it is based, and include a statement of the facts to be relied upon! #opies of printed publications or of patents of othercountries, or other supportin documents mentioned in the petition shall be filed therewith, toether with the transaction thereof into ,nlish, if not in the ,nlish lanuae!4Se,(&)n .1- )otice and hearing- - +pon the filin of a petition for cancellation, the Director shall forthwith serve notice of the filin thereof upon the patentee and all persons havin rants or licenses, or any other riht, 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 hearin thereon on such persons and the petitioner! 3otice of the filin of the petition shall be published in the Official &a(ette!Se,(&)n .2- &ancellation of the patent- - *f the Director finds that a case for cancellation has been made out he shall order the patent or any specified claim or claims thereof cancelled! The order shall not become effective until the time for appeal has elapsed or, if appeal is taken, until the 'udment on appeal becomes final! 0hen theorder or 'udment becomes final, any rihts conferred upon the patentee by the patent or any specified claim or claims cancelled thereby shall terminate! 3otice of cancellation shall be published in the Official &a(ette!Se,(&)n ..- &ancellation for fraud on the inventor- - *n the case of the round specified in pararaph .c/, section twenty-eiht hereof, if the petition for cancellation is made by or on behalf of the true and actual inventor from whom the patentee fraudulently derived the invention and is successful on this round, a patent may be obtained by such inventor, if he does not have a patent, notwithstandin any knowlede or use or publication of the patent cancelled- Provided, That the true and actual inventor shall file an application for patent for such invention within six months after the order of cancellation has become final! The term of such patent, however, shall expire seventeen years from the date of issue of the patent cancelled!C!APTER 5III " C)6+u20)#7 &,en0&n$Se,(&)n .4- Grounds for compulsory license- - "ny person may apply to the Director for the rant of a license under a particular patent at any time after the expiration of three years from the date of the rant of the patent, under any of the followin circumstances-.a/ *f the patented invention is not bein worked within the Philippines on a commercial scale, althouhcapable of bein so worked, without satisfactory reason).b/ *f the demand for the patented article in the Philippines is not bein met to an ade%uate extent and on reasonable terms, without satisfactory reason).c/ *f by reason of the refusal of the patentee to rant a license or licenses on reasonable terms, or by reason of the conditions attached by the patentee to licenses or to the purchase, lease or use of the patented article or workin of the patented process or machine of production the establishment of any new trade or industry in the Philippines is prevented, or the trade of industry therein is unduly restrained) or.d/ *f the patented invention relates to food or medicine or is necessary for public health or public safety!The term "worked" or "workin" as used in this section means the manufacture and sale of a patented article, or the carryin on of a patented process or the use of a patented machine for production, in or by means of a definite and substantial establishment or orani(ation in the Philippines and on a scale which is ade%uate and reasonable under the circumstances!Se,(&)n .5- )otice and hearing- - +pon the filin of a petition under section thirty-four hereof, notice shall be iven in the same manner and form as that provided in section thirty-one, #hapter 4** hereof!Se,(&)n .6- Grant of license- - *f the Director finds that a case for the rant of a license under section thirty-fourhereof has been made out, he may order the rant of an appropriate license and in default of areement amon the parties as to the terms and conditions of the license he shall fix the terms and conditions of the license in the order!The order of the Director rantin a license under this #hapter, when final, shall operate as a deed rantin a license executed by the patentee and the other parties in interest!5C!APTER I8 " R&$9(0 )4 P%(en(ee0 %n* In4#&n$e6en( )4 P%(en(0Se,(&)n .7- Rights of patentees- - " patentee shall have the exclusive riht to make, use and sell the patented machine, article or product, and to use the patented process for the purpose of industry or commerce, throuhoutthe territory of the Philippines for the term of the patent) and such makin, usin, or sellin by any person without the authori(ation of the patentee constitutes infrinement of the patent!Se,(&)n .3- *#perimental use of invention- - The makin or usin of a patented invention when not conducted for profit and solely for the purpose of research or experiment, or for instruction, shall not constitute infrinement!Se,(&)n .9- !emporary presence in the country- - 3o patent shall prevent the use of any invention in any ship, vessel, aircraft, or land vehicle of any other country enterin the territory of the Philippines temporarily or accidentally, and such use shall not constitute infrinement of the patent, provided such invention is used exclusively for the needs of the ship, vessel, aircraft, or land vehicle and not used for the manufacture of anythin to be sold within or exported from the Philippines!Se,(&)n 40- Rights of third parties prior to application- - "ny person who has purchased or ac%uired of the inventor, his leal representatives, or assins, or who, with their knowlede and consent, constructs any newly invented device or other patentable article, prior to the filin of the application therefor, shall have the riht to use and sell the specific thin purchased, ac%uired or made, without liability therefor!Se,(&)n 41- +se of invention by the Government- - The &overnment of the Philippines may use any patented invention at any time for overnmental purposes, and the manufacture or use of the invention by or for the &overnment for such purposes shall not constitute infrinement of the patent, but the patentee shall be entitled to receive a reasonable compensation for the use of the invention!C!APTER 8 " A,(&)n0 %n* Re6e*&e0 4)# In4#&n$e6en(Se,(&)n 42- &ivil action for infringement- - "ny patentee, or anyone possessin any riht, title or interest in andto the patented invention, whose rihts have been infrined, may brin a civil action before the proper #ourt of 5irst *nstance, to recover from the infriner damaes sustained by reason of the infrinement and to secure an in'unction for the protection of his rihts!*f the damaes are inade%uate or cannot be readily ascertained with reasonable certainty, the court may award asdamaes a sum amountin to a reasonable royalty!The court may, accordin to the circumstances of the case, award damaes in a sum above the amount found as actual damaes sustained provided the award does not exceed three times the amount of such actual damaes!Se,(&)n 4.- ,imitation of action for damages- - 3o damaes can be recovered for acts of infrinement committed more than four years before the institution of the action for infrinement!Se,(&)n 44- -amages not recoverable for want of notice or mar'ing- - Damaes cannot be recovered for acts of infrinement committed before the infriner had actual notice of the patent, unless the patentee or those exploitin the invention on his behalf or under his authori(ation have iven notice to the public that the machine, device, articles or process is patented either by placin thereon the words "Philippines Patent" with thenumber of the patent, or when from the nature of the article this cannot reasonably be done, by placin such notice on the packae or container in which the device or article is supplied to the public, or is descriptive or advertisin matter used in connection with the patented machine, device, article or process!Se,(&)n 45- -efenses in action for infringement- - *n an action for infrinement 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 rounds on which a petition of cancellation can be brouht under section twenty-eiht, #hapter 4** hereof!6Se,(&)n 46- Patent found invalid to be cancelled- - *f the court shall find the patent or any claim thereof invalid,the Director shall, on certification of the final 'udment to the Office, issue an order cancellin the patent or the claims found invalid, and shall publish a notice thereof in the Official &a(ette!Se,(&)n 47- Assessors in infringement action- - Two or more assessors may be appointed by the court! The assessors shall be so %ualified by the necessary scientific and technical knowlede re%uired by the sub'ect matterin suit! ,ither party may, as a preliminary %uestion, challene the fitness of any assessor to sit in an action!,ach assessor shall receive a compensation in an amount to be fixed by the court and advanced by the complainin party, and thereafter to be taxed as costs in favor of the prevailin party!Se,(&)n 43- &riminal action for repetition of infringement- - *f infrinement is repeated by the infriner or by anyone in connivance with him after final 'udment of the court aainst the infriner, the parties liable shall, without pre'udice to further civil action, be punished by a fine not exceedin ten thousand pesos and imprisonment not exceedin five years, or both such fine and imprisonment in the discretion of the court, in a criminal action instituted for the purpose! The criminal action herein provided shall prescribed in two years!Se,(&)n 49- Appeal- - "ppeal may be taken from the 'udment of the court in the civil and criminal actions herein provided in the same manner as in other actions!C!APTER 8I " A00&$n6en( %n* T#%n06&00&)n )4 R&$9(0Se,(&)n 50- !ransmission of rights- - Patents and the inventions covered thereby shall be protected as and have the applicable rihts of other property! *nventions and any rihts, title or interest in and to patents and inventionscovered thereby may be assined, or transmitted by inheritance or be%uest!Se,(&)n 51- Assignment of inventions- - "n assinment may be on the entire riht, title or interest in and to the patent and the invention covered thereby, or of an undivided share of the entire patent and invention in which event the parties become 'oint owners thereof! "n assinment may be limited to a specified territory!Se,(&)n 52- "orm of assignment- - The assinment must be in writin, acknowleded before a notary public or other officer authori(ed to administer oaths or perform notarial acts and certified under the hand and official sealof the notary or other officer!Se,(&)n 5.- Recording- - The Director shall record assinment, licenses and other instruments relatin to any riht, title or interest in and to inventions, and patents or inventions covered thereby, which are presented in due form to the Office for reistration, in books and records kept for the purpose! The oriinal document toether with a sined duplicate thereof shall be filed, but if the oriinal is not available, an authenticated copy thereof in duplicate may be filed! +pon recordin, the Director shall retain the duplicate, and return the oriinal or the authenticated copy to the party filin with a notation of the fact of record! 3otice of the recordin shall be published in the Official &a(ette!$uch instruments shall be void as aainst any subse%uent purchaser or mortaee for a valuable consideration and without notice unless it is recorded in the Office within three months from the date thereof, or prior to the subse%uent purchase or mortae!Se,(&)n 54- Rights of .oint owners- - *f two or more persons 'ointly own a patent and the invention covered thereby either by the issuin of the patent to them 'ointly or by reason of the assinment of an undivided share in the patent and invention or by reason of the succession in title to such share, each of the 'oint owners, shall beentitled to personally make, use, or sell the invention for his own profit, sub'ect to any contract or areement, but neither of the owners shall be entitled to rant licenses or to assin his riht, title or interest or part thereof without the consent of the other owner or owners, or without proportionately dividin the proceeds with the other owner or owners!C!APTER 8II " De0&$n07Se,(&)n 55- Industrial designs- - "ny new and oriinal creation relatin to the features of shape, pattern, confiuration, ornamental, or artistic appearance of an article or industrial product may be protected as an industrial desin by the author in the same manner and sub'ect to the same provisions and re%uirements as relateto patents for inventions insofar as they are applicable, except as otherwise hereinafter provided!Se,(&)n 56- Si# months publication- - The period of one year specified in section nine, #hapter **, and section fifteen, #hapter ***, hereof, for inventions shall be six months in the case of desins!Se,(&)n 57- )otice of registration shall be published- - 3otice of the reistration of the desin shall be published in the Official &a(ette!Se,(&)n 53- !erm and e#tension thereof - - The term of the desin reistration shall be five years from the date of reistration!6efore the expiration of the five-year term upon payment of the re%uired fee, or within a further time thereafter not to exceed six months upon payment of the surchare, the owner of the reistration may apply for an extension for an additional five years! The application for extension must be accompanied by an affidavit showin that the desin is in commercial or industrial use in the Philippines or satisfactorily explainin non-use!*n a similar manner an extension for a third five-year period may be obtained!Se,(&)n 59- $ar'ing- - The markin re%uired by section forty-four, #hapter 7, hereof, shall be "Philippines Desin 1eistration," or appropriate abbreviation, and the number of the reistration!Se,(&)n 60- Infringement- - *nfrinement of a desin reistration shall consist in unauthori(ed copyin of the reistered desin for the purpose of trade or industry in the article or product and in the makin, usin or sellin of the article or product copyin the reistered desin! *dentity or substantial identity with the reistered desin shall constitute evidence of copyin!C!APTER 8III " Re/&e: )4 O#*e#0 )# De,&0&)n0 )4 De,()#Se,(&)n 61- Appeal from the action of -irector- - The applicant for a patent or for the reistration of a desin, any party to a proceedin to cancel a patent or to obtain a compulsory license, and any party to any other proceedin in the Office may appeal to the $upreme #ourt from any final order or decision of the Director!Se,(&)n 62- Stay- - " petition for review of any order or decision of the Director re'ectin in whole or in part an application for a patent or reistration of a desin, shall not stay any order or decision of the Director in respect of any other applications then pendin for a patent or desin reistration) but the Director shall proceed to act onsuch other applications without reard to such petition unless the $upreme #ourt shall otherwise direct!Se,(&)n 6.- %ow appeal is perfected- - "n appeal from an order or decision of the Director shall be perfected byfilin with the Director a notice of appeal and the payment of the re%uired appeal fee and filin with the $upreme #ourt a petition for review, within thirty days from notice of the order or decision appealed from!Se,(&)n 64- &ontents and notice of petition- - The petition shall contain a summary statement of the issues involved and the reasons relied upon for allowance of a review! #opies of the petition shall be served upon the Director and all other parties in interest!Se,(&)n 65- -oc'eting fee and deposits for costs- - +pon filin the petition for review, the petitioner shall pay tothe clerk of the $upreme #ourt the docketin fee and shall deposit the sum of one hundred pesos for costs!Se,(&)n 66- *levation of copy of record- - +pon the filin of the petition, notice thereof shall be served by the clerk of the $upreme #ourt upon the Director, who, within thirty days thereafter, shall certify and forward to the $upreme #ourt a copy of the record as the same appears in this Office!Se,(&)n 67- Answer of respondent- - +pon receipt of the record, the clerk of the $upreme #ourt shall serve notice upon the Director and all other parties in interest, re%uirin them to answer within ten days from service! #opies of such answer shall served upon the petitioner!8Se,(&)n 63- Power of court- - The $upreme #ourt may, on petition filed within five days after the filin of the answer, allow the parties to adduce additional evidence material to the matter at issue, which shall constitute a supplementary record to be considered in connection with the record on appeal!Se,(&)n 69- Representation by Solicitor General- - *n all appeals from an order or decision of the Director the $olicitor &eneral shall appeal on behalf of the Director!Se,(&)n 70- /riefs on appeal- - +pon receipt of the answer to the petition or upon conclusion of the presentationof additional evidence, the clerk of the $upreme #ourt shall notify the parties, and the petitioner, within thirty days from such notice, shall file twenty copies of his brief upon the adverse parties and, within thirty days from such service, the adverse parties shall file twenty copies of their brief toether with proof of service of five copies thereof upon the petitioner!Se,(&)n 71- Inclusion in calendar- - +pon the filin of the respondent8s brief, or after the expiration of the time for its filin, the case shall be included in the reular calendar, unless the court advances the hearin for special cause shown!Se,(&)n 72- Oral argument0 its duration- - ,ach party is entitled to one hour for oral arument, extendible in thediscretion of the court!Se,(&)n 7.- Rules of &ourt applicable- - *n all other matters not herein provided, the applicable provisions of the 1ules of #ourt shall overn!C!APTER 8I5 " Pen%2(7 4)# F%20e ;%#:< .;! $tructural Orani(ation! TheDepartment shall consist of theDepartment Proper, 3ational $ervice#enters, 1eional Offices and Aine #orporate "encies and &overnment ,ntities!$,#! E! $taff 6ureaus and $ervices! The 6ureaus and $ervice +nits shall be responsible for research,formulation ofpolicy, developmentof standards, framin ofrules andreulations,proramformulationandprorammonitorin, relatedtotheconcernscoveredbytheDepartmentNsmandate, powers, andfunctions!*mplementation of such policies, standards, rules and reulations, and prorams shall be the responsibility of theDepartmentNs Aine Operatin +nits!$,#! !9! Lualifications! - The Director &eneral and the Deputies Director &eneral must be natural born citi(ens of the Philippines, at least thirty-five .BC/ years of ae on the day of their appointment, holders of a collee deree,and of proven competence, interity, probity and independence- Provided, That the Director &eneral and at leastone .;/ Deputy Director &eneral shall be members of the Philippine 6ar who have enaed in the practice of law for at least ten .;:/ years- Provided further, That in the selection of the Director &eneral and the Deputies Director &eneral, consideration shall be iven to such %ualifications as would result, as far as practicable, in the balanced representation in the Directorate &eneral of the various fields of intellectual property!>!B! Term of Office! - The Director &eneral and the Deputies Director &eneral shall be appointed by the President for a term of five .C/ years and shall be eliible for reappointment only once- Provided, That the first Director &eneral shall have a first term of seven .>/ years! "ppointment to any vacancy shall be only for the unexpired term of the predecessor!>!=! The Office of the Director &eneral! - The Office of the Director &eneral shall consist of the Director &eneral and the Deputies Director &eneral, their immediate staff and such Offices and $ervices that the Director&eneral will set up to support directly the Office of the Director &eneral! .n/Se,(&)n 3- -he $ureau of 0atents! - The 6ureau of Patents shall have the followin functions-E!;! $earch and examination of patent applications and the rant of patents)E!9! 1eistration of utility models, industrial desins, and interated circuits) andE!B! #onduct studies and researches in the field of patents in order to assist the Director &eneral in formulatin policies on the administration and examination of patents! .n/Se,(&)n 9- -he $ureau of -rademarks! - The 6ureau of Trademarks shall have the followin functions-! Provide technical, advisory, and other services relatin to the licensin and promotion of technoloy, and carry out an efficient and effective proram for technoloy transfer) and;;!E! 1eister technoloy transfer arranements, and settle disputes involvin technoloy transfer payments! .n/Se,(&)n 12- -he :anagement 2nformation &er!ices and D0 $ureau! - The ?anaement *nformation $ervices and ,DP 6ureau shall-;9!;! #onduct automation plannin, research and development, testin of systems, contracts with firms, contractin, purchase and maintenance of e%uipment, desin and maintenance of systems, user consultation, andthe like) and;9!9! Provide manaement information support and service to the Office! .n/Se,(&)n 1.- -he Administrati!e, .inancial and Human "esource De!elopment &er!ice $ureau! - ;B!;! The "dministrative $ervice shall- .a/ Provide services relative to procurement and allocation of supplies and 56e%uipment, transportation, messenerial work, cashierin, payment of salaries and other Office8s obliations, office maintenance, proper safety and security, and other utility services) and comply with overnment reulatory re%uirements in the areas of performance appraisal, compensation and benefits, employment records and reports).b/ 1eceive all applications filed with the Office and collect fees therefor, and.c/ Publish patent applications and rants, trademark applications, and reistration of marks, industrial desins, utility models, eoraphic indication, and lay-out-desins of interated circuits reistrations!;B!9! The Patent and Trademark "dministration $ervices shall perform the followin functions amon others-.a/ ?aintain reisters of assinments, merins, licenses, and biblioraphic on patents and trademarks).b/ #ollect maintenance fees, issue certified copies of documents in its custody and perform similar other activities) and.c/ 2old in custody all the applications filed with the office, and all patent rants, certificate of reistrations issued by the office, and the like!;B!B! The 5inancial $ervice shall formulate and manae a financial proram to ensure availability and proper utili(ation of funds) provide for an effective monitorin system of the financial operations of the Office) and;B!=! The 2uman 1esource Development $ervice shall desin and implement human resource development plans and prorams for the personnel of the Office) provide for present and future manpower needs of the orani(ation) maintain hih morale and favorable employee attitudes towards the orani(ation throuh the continuin desin and implementation of employee development prorams! .n/Se,(&)n 14- 3se of 2ntellectual 0ropert% "ights .ees 1% the 20(! - ;=!;! 5or a more effective and expeditious implementation of this "ct, the Director &eneral shall be authori(ed to retain, without need of a separate approval from any overnment aency, and sub'ect only to the existin accountin and auditin rules and reulations, all the fees, fines, royalties and other chares, collected by the Office under this "ct and the other laws that the Office will be mandated to administer, for use in its operations, like upradin of its facilities, e%uipment outlay, human resource development, and the ac%uisition of the appropriate office space, amon others, to improve the delivery of its services to the public! This amount, which shall be in addition to the Office8s annual budet, shall be deposited and maintained in a separate account or fund, which may be used or disbursed directly by the Director &eneral!;=!9! "fter five .C/ years from the comin into force of this "ct, the Director &eneral shall, sub'ect to the approval of the $ecretary of Trade and *ndustry, determine if the fees and chares mentioned in $ubsection ;=!; hereof that the Office shall collect are sufficient to meet its budetary re%uirements! *f so, it shall retain all the fees and chares it shall collect under the same conditions indicated in said $ubsection ;=!; but shall forthwith, cease to receive any funds from the annual budet of the 3ational &overnment) if not, the provisions of said $ubsection ;=!; shall continue to apply until such time when the Director &eneral, sub'ect to the approval of the$ecretary of Trade and *ndustry, certifies that the above-stated fees and chares the Office shall collect are enouh to fund its operations! .n/Se,(&)n 15- &pecial -echnical and &cientific Assistance! - The Director &eneral is empowered to obtain the assistance of technical, scientific or other %ualified officers and employees of other departments, bureaus, offices, aencies and instrumentalities of the &overnment, includin corporations owned, controlled or operated by the &overnment, when deemed necessary in the consideration of any matter submitted to the Office relative to the enforcement of the provisions of this "ct! .$ec! B, 1!"! 3o! ;DCa/Se,(&)n 16- &eal of (ffice! - The Office shall have a seal, the form and desin of which shall be approved by the Director &eneral! .$ec! =, 1!"! 3o! ;DCa/57Se,(&)n 17- 0u1lication of 9aws and "egulations! - The Director &eneral shall cause to be printed and make available for distribution, pamphlet copies of this "ct, other pertinent laws, executive orders and information circulars relatin to matters within the 'urisdiction of the Office! .$ec! C, 1!"! 3o! ;DCa/Se,(&)n 13- -he 20( 4a8ette! - "ll matters re%uired to be published under this "ct shall be published in the Office8s own publication to be known as the *PO &a(ette! .n/Se,(&)n 19- Dis;ualification of (fficers and mplo%ees of the (ffice! - "ll officers and employees of the Office shall not apply or act as an attorney or patent aent of an application for a rant of patent, for the reistration of a utility model, industrial desin or mark nor ac%uire, except by hereditary succession, any patent or utility model, desin reistration, or mark or any riht, title or interest therein durin their employment and for one .;/ year thereafter! .$ec! >>, 1!"! 3o! ;DCa/PART IIT!E AW ON PATENTSC!APTER IGENERA PRO5ISIONSSe,(&)n 20- Definition of -erms 3sed in 0art 22, -he 9aw on 0atents! - "s used in Part **, the followin terms shall have the followin meanins-9:!;! "6ureau" means the 6ureau of Patents,9:!9! "Director" means the Director of Patents)9:!B! "1eulations" means the 1ules of Practice in Patent #ases formulated by the Director of Patents and promulated by the Director &eneral)9:!=! ",xaminer" means the patent examiner)9:!C! "Patent application" or "application" means an application for a patent for an invention except in #hapters 7** and 7***, where "application" means an application for a utility model and an industrial desin, respectively) and9:!D! "Priority date" means the date of filin of the forein application for the same invention referred to in $ection B; of this "ct! .n/C!APTER IIPATENTABIIT?Se,(&)n 21- 0atenta1le 2n!entions! - "ny technical solution of a problem in any field of human activity which is new, involves an inventive step and is industrially applicable shall be Patentable! *t may be, or may relate to, a product, or process, or an improvement of any of the foreoin! .$ec! >, 1!"! 3o! ;DCa/Se,(&)n 22- )on50atenta1le 2n!entions! - The followin shall be excluded from patent protection-99!;! Discoveries, scientific theories and mathematical methods)99!9! $chemes, rules and methods of performin mental acts, playin ames or doin business, and prorams for computers)99!B! ?ethods for treatment of the human or animal body by surery or therapy and dianostic methods practiced on the human or animal body! This provision shall not apply to products and composition for use in any of these methods)5899!=! Plant varieties or animal breeds or essentially bioloical process for the production of plants or animals! This provision shall not apply to micro-oranisms and non-bioloical and microbioloical processes!Provisions under this subsection shall not preclude #onress to consider the enactment of a law providin sui eneris protection of plant varieties and animal breeds and a system of community intellectual rihts protection-99!C! "esthetic creations) and99!D! "nythin which is contrary to public order or morality! .$ec! E, 1!"! 3o! ;DCa/Se,(&)n 2.- )o!elt%! ! - "n invention shall not be considered new if it forms part of a prior art! .$ec! and $ections B9 to B< and the fees have been paidon time!=E!9! 0ithdrawal of the re%uest for examination shall be irrevocable and shall not authori(e the refund of any fee! .n/Se,(&)n 49- Amendment of Application! - "n applicant may amend the patent application durin examination- Provided, That such amendment shall not include new matter outside the scope of the disclosure contained in the application as filed! .n/Se,(&)n 50- 4rant of 0atent! - C:!;! *f the application meets the re%uirements of this "ct, the Office shall rant the patent- Provided, That all the fees are paid on time!62C:!9! *f the re%uired fees for rant and printin are not paid in due time, the application shall be deemed to be withdrawn!C:!B! " patent shall take effect on the date of the publication of the rant of the patent in the *PO &a(ette! .$ec! ;E, 1!"! 3o! ;DCa/Se,(&)n 51- "efusal of the Application! - C;!;! The final order of refusal of the examiner to rant the patent shall be appealable to the Director in accordance with this "ct!C;!9! The 1eulations shall provide for the procedure by which an appeal from the order of refusal from the Director shall be undertaken! .n/Se,(&)n 52- 0u1lication 3pon 4rant of 0atent! - C9!;! The rant of the patent toether with other related information shall be published in the *PO &a(ette within the time prescribed by the 1eulations!C9!9! "ny interested party may inspect the complete description, claims, and drawins of the patent on file with the Office! .$ec! ;E, 1!"! 3o! ;DCa/Se,(&)n 5.- Contents of 0atent! - The patent shall be issued in the name of the 1epublic of the Philippines under the seal of the Office and shall be sined by the Director, and reistered toether with the description, claims, and drawins, if any, in books and records of the Office! .$ecs! ;< and 9:, 1!"! 3o! ;DCa/Se,(&)n 54- -erm of 0atent! - The term of a patent shall be twenty .9:/ years from the filin date of the application! .$ec! 9;, 1!"! 3o! ;DCa/Se,(&)n 55- Annual .ees! - CC!;! To maintain the patent application or patent, an annual fee shall be paid upon the expiration of four .=/ years from the date the application was published pursuant to $ection == hereof, and on each subse%uent anniversary of such date! Payment may be made within three .B/ months before the due date! The obliation to pay the annual fees shall terminate should the application be withdrawn, refused, or cancelled!CC!9! *f the annual fee is not paid, the patent application shall be deemed withdrawn or the patent considered as lapsed from the day followin the expiration of the period within which the annual fees were due! " notice that the application is deemed withdrawn or the lapse of a patent for non-payment of any annual fee shall be published in the *PO &a(ette and the lapse shall be recorded in the 1eister of the Office!CC!B! " race period of six .D/ months shall be ranted for the payment of the annual fee, upon payment of the prescribed surchare for delayed payment! .$ec! 99, 1!"! 3o! ;DCa/Se,(&)n 56- &urrender of 0atent! - CD!;! The owner of the patent, with the consent of all persons havin rants orlicenses or other riht, 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 formin part thereof to the Office for cancellation!CD!9! " person may ive notice to the Office of his opposition to the surrender of a patent under this section, andif he does so, the 6ureau shall notify the proprietor of the patent and determine the %uestion!CD!B! *f 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 *PO &a(ette, the patent shall cease to have effect, but no action for infrinement shall lie and no riht compensation shall accrue for any use of the patented invention before that day for the services of the overnment! .$ec! 9=, 1!"! 3o! ;DCa/Se,(&)n 57- Correction of :istakes of the (ffice! - The Director shall have the power to correct, without fee, anymistake in a patent incurred throuh the fault of the Office when clearly disclosed in the records thereof, to make the patent conform to the records! .$ec! 9C, 1!"! 3o! ;DC/63Se,(&)n 53- Correction of :istake in the Application! - On re%uest of any interested person and payment of the prescribed fee, the Director is authori(ed to correct any mistake in a patent of a formal and clerical nature, not incurred throuh the fault of the Office! .$ec! 9D, 1!"! 3o! ;DCa/Se,(&)n 59- Changes in 0atents! - C!;! *f a person referred to in $ection 9< other than the applicant, is declared by final court order or decision as havin the riht to the patent, such person may, within three .B/ months after the decision has become final-.a/ Prosecute the application as his own application in place of the applicant).b/ 5ile a new patent application in respect of the same invention).c/ 1e%uest that the application be refused) or.d/ $eek cancellation of the patent, if one has already been issued!D>!9! The provisions of $ubsection BE!9 shall apply mutatis mutandis to a new application filed under $ubsection D>! ;.b/! .n/Se,(&)n 63- "emedies of the -rue and Actual 2n!entor! - *f a person, who was deprived of the patent without his consent or throuh fraud is declared by final court order or decision to be the true and actual inventor, the court shall order for his substitution as patentee, or at the option of the true inventor, cancel the patent, and award actual and other damaes in his favor if warranted by the circumstances! .$ec! BB, 1!"! 3o! ;DCa/Se,(&)n 69- 0u1lication of the Court (rder! - The court shall furnish the Office a copy of the order or decision referred to in $ections D> and DE, which shall be published in the *PO &a(ette within three .B/ months from the date such order or decision became final and executory, and shall be recorded in the reister of the Office! .n/Se,(&)n 70- -ime to .ile Action in Court! - The actions indicated in $ections D> and DE shall be filed within one .;/ year from the date of publication made in accordance with $ections == and C;, respectively! .n/C!APTER 5IIIRIG!TS OF PATENTEES AND INFRINGE;ENT OF PATENTS65Se,(&)n 71- "ights Conferred 1% 0atent! - >;!;! " patent shall confer on its owner the followin exclusive rihts-.a/ 0here the sub'ect matter of a patent is a product, to restrain, prohibit and prevent any unauthori(ed person or entity from makin, usin, offerin for sale, sellin or importin that product).b/ 0here the sub'ect matter of a patent is a process, to restrain, prevent or prohibit any unauthori(ed person or entity from usin the process, and from manufacturin, dealin in, usin, sellin or offerin for sale, or importin any product obtained directly or indirectly from such process!>;!9! Patent owners shall also have the riht to assin, or transfer by succession the patent, and to conclude licensin contracts for the same! .$ec! B>, 1!"! 3o! ;DCa/Se,(&)n 72- 9imitations of 0atent "ights! - The owner of a patent has no riht to prevent third parties from performin, without his authori(ation, the acts referred to in $ection >; hereof in the followin circumstances->9!;! +sin a patented product which has been put on the market in the Philippines by the owner of the product, or with his express consent, insofar as such use is performed after that product has been so put on the said market)>9!9! 0here the act is done privately and on a non-commercial scale or for a non-commercial purpose- Provided, That it does not sinificantly pre'udice the economic interests of the owner of the patent)>9!B! 0here the act consists of makin or usin exclusively for the purpose of experiments that relate to the sub'ect matter of the patented invention)>9!=! 0here the act consists of the preparation for individual cases, in a pharmacy or by a medical professional, of a medicine in accordance with a medical prescription or acts concernin the medicine so prepared)>9!C! 0here the invention is used in any ship, vessel, aircraft, or land vehicle of any other country enterin the territory of the Philippines temporarily or accidentally- Provided, That such invention is used exclusively for theneeds of the ship, vessel, aircraft, or land vehicle and not used for the manufacturin of anythin to be sold within the Philippines! .$ecs! BE and B=!;! " &overnment aency or third person authori(ed by the &overnment may exploit the invention even without areement 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 aency of the overnment, so re%uires) or.b/ " 'udicial or administrative body has determined that the manner of exploitation, by the owner of the patent or his licensee is anti-competitive!>=!9! The use by the &overnment, or third person authori(ed by the &overnment shall be sub'ect, mutatis mutandis, to the conditions set forth in $ections D!B! *f the damaes are inade%uate or cannot be readily ascertained with reasonable certainty, the court may award by way of damaes a sum e%uivalent to reasonable royalty!>D!=! The court may, accordin to the circumstances of the case, award damaes in a sum above the amount found as actual damaes sustained- Provided, That the award does not exceed three .B/ times the amount of suchactual damaes!>D!C! The court may, in its discretion, order that the infrinin oods, materials and implements predominantly used in the infrinement be disposed of outside the channels of commerce or destroyed, without compensation!>D!D! "nyone who actively induces the infrinement of a patent or provides the infriner with a component of a patented product or of a product produced because of a patented process knowin it to be especially adopted for infrinin the patented invention and not suitable for substantial non-infrinin use shall be liable as a contributory infriner and shall be 'ointly and severally liable with the infriner! .$ec! =9, 1!"! 3o! ;DCa/Se,(&)n 77- 2nfringement Action 1% a .oreign )ational! - "ny forein national or 'uridical entity who meets the re%uirements of $ection B and not enaed in business in the Philippines, to which a patent has been ranted or assined under this "ct, may brin an action for infrinement of patent, whether or not it is licensed to do business in the Philippines under existin law! .$ec! =;-", 1!"! 3o! ;DCa/Se,(&)n 73- 0rocess 0atents# $urden of 0roof ! - *f the sub'ect matter of a patent is a process for obtainin a product, any identical product shall be presumed to have been obtained throuh the use of the patented process if the product is new or there is substantial likelihood that the identical product was made by the process and the owner of the patent has been unable despite reasonable efforts, to determine the process actually used! *n orderin the defendant to prove that the process to obtain the identical product is different from the patented process, the court shall adopt measures to protect, as far as practicable, his manufacturin and business secrets! .n/Se,(&)n 79- 9imitation of Action for Damages! - 3o damaes can be recovered for acts of infrinement committed more than four .=/ years before the institution of the action for infrinement! .$ec! =B, 1!"! 3o! ;DC/Se,(&)n 30- Damages, "e;uirement of )otice! - Damaes cannot be recovered for acts of infrinement committed before the infriner had known, or had reasonable rounds to know of the patent! *t is presumed that the infriner had known of the patent if on the patented product, or on the container or packae in which the article is supplied to the public, or on the advertisin material relatin to the patented product or process, are placed the words "Philippine Patent" with the number of the patent! .$ec! ==, 1!"! 3o! ;DCa/Se,(&)n 31- Defenses in Action for 2nfringement! - *n an action for infrinement, 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 rounds on which a petition of cancellation can be brouht under $ection D; hereof! .$ec! =C, 1!"! 3o! ;DC/Se,(&)n 32- 0atent .ound 2n!alid :a% 1e Cancelled! - *n an action for infrinement, if the court shall find the patent or any claim to be invalid, it shall cancel the same, and the Director of Aeal "ffairs upon receipt of the final 'udment of cancellation by the court, shall record that fact in the reister of the Office and shall publish a notice to that effect in the *PO &a(ette! .$ec! =D, 1!"! 3o! ;DCa/67Se,(&)n 3.- Assessor in 2nfringement Action! - EB!;! Two .9/ or more assessors may be appointed by the court! The assessors shall be possessed of the necessary scientific and technical knowlede re%uired by the sub'ect matter in litiation! ,ither party may challene the fitness of any assessor proposed for appointment!EB!9! ,ach assessor shall receive a compensation in an amount to be fixed by the court and advanced by the complainin party, which shall be awarded as part of his costs should he prevail in the action! .$ec! =>, 1!"! 3o!;DCa/Se,(&)n 34- Criminal Action for "epetition of 2nfringement! - *f infrinement is repeated by the infriner or by anyone in connivance with him after finality of the 'udment of the court aainst the infriner, the offenders shall, without pre'udice to the institution of a civil action for damaes, be criminally liable therefor and, upon conviction, shall suffer imprisonment for the period of not less than six .D/ months but not more than three .B/ years andIor a fine of not less than One hundred thousand pesos .P;::,:::/ but not more than Three hundred thousand pesos .PB::,:::/, at the discretion of the court! The criminal action herein provided shall prescribe in three .B/ years from date of the commission of the crime! .$ec! =E, 1!"! 3o! ;DCa/C!APTER I85OUNTAR? ICENSINGSe,(&)n 35- =oluntar% 9icense Contract! - To encourae the transfer and dissemination of technoloy, prevent orcontrol practices and conditions that may in particular cases constitute an abuse of intellectual property rihts havin an adverse effect on competition and trade, all technoloy transfer arranements shall comply with the provisions of this #hapter! .n/Se,(&)n 36- Jurisdiction to &ettle Disputes on "o%alties! - The Director of the Documentation, *nformation and Technoloy Transfer 6ureau shall exercise %uasi-'udicial 'urisdiction in the settlement of disputes between parties to a technoloy transfer arranement arisin from technoloy transfer payments, includin the fixin of appropriate amount or rate of royalty! .n/Se,(&)n 37- 0rohi1ited Clauses! - ,xcept in cases under $ection !;! Those which impose upon the licensee the obliation to ac%uire from a specific source capital oods, intermediate products, raw materials, and other technoloies, or of permanently employin personnel indicated by the licensor)E>!9! Those pursuant to which the licensor reserves the riht to fix the sale or resale prices of the products manufactured on the basis of the license)E>!B! Those that contain restrictions reardin the volume and structure of production)E>!=! Those that prohibit the use of competitive technoloies in a non-exclusive technoloy transfer areement)E>!C! Those that establish a full or partial purchase option in favor of the licensor)E>!D! Those that obliate the licensee to transfer for free to the licensor the inventions or improvements that maybe obtained throuh the use of the licensed technoloy)E>!>! Those that re%uire payment of royalties to the owners of patents for patents which are not used)E>!E! Those that prohibit the licensee to export the licensed product unless 'ustified for the protection of the leitimate interest of the licensor such as exports to countries where exclusive licenses to manufacture andIor distribute the licensed product.s/ have already been ranted)E>!!;:! Those which re%uire payments for patents and other industrial property rihts after their expiration, termination arranement)E>!;;! Those which re%uire that the technoloy recipient shall not contest the validity of any of the patents of thetechnoloy supplier)E>!;9! Those which restrict the research and development activities of the licensee desined to absorb and adapt the transferred technoloy to local conditions or to initiate research and development prorams in connection with new products, processes or e%uipment)E>!;B! Those which prevent the licensee from adaptin the imported technoloy to local conditions, or introducin innovation to it, as lon as it does not impair the %uality standards prescribed by the licensor)E>!;=! Those which exempt the licensor for liability for non-fulfilment of his responsibilities under the technoloy transfer arranement andIor liability arisin from third party suits brouht about by the use of the licensed product or the licensed technoloy) andE>!;C! Other clauses with e%uivalent effects! .$ec! BB-# .9/, 1!" ;DCa/Se,(&)n 33- :andator% 0ro!isions! - The followin provisions shall be included in voluntary license contracts-EE!;! That the laws of the Philippines shall overn the interpretation of the same and in the event of litiation, the venue shall be the proper court in the place where the licensee has its principal office)EE!9! #ontinued access to improvements in techni%ues and processes related to the technoloy shall be made available durin the period of the technoloy transfer arranement)EE!B! *n the event the technoloy transfer arranement shall provide for arbitration, the Procedure of "rbitration of the "rbitration Aaw of the Philippines or the "rbitration 1ules of the +nited 3ations #ommission on *nternational Trade Aaw .+3#*T1"A/ or the 1ules of #onciliation and "rbitration of the *nternational #hamber of #ommerce .*##/ shall apply and the venue of arbitration shall be the Philippines or any neutral country) andEE!=! The Philippine taxes on all payments relatin to the technoloy transfer arranement shall be borne by the licensor! .n/Se,(&)n 39- "ights of 9icensor! - *n the absence of any provision to the contrary in the technoloy transfer arranement, the rant of a license shall not prevent the licensor from rantin further licenses to third person nor from exploitin the sub'ect matter of the technoloy transfer arranement himself! .$ec! BB-6, 1!"! ;DCa/Se,(&)n 90- "ights of 9icensee! - The licensee shall be entitled to exploit the sub'ect matter of the technoloy transfer arranement durin the whole term of the technoloy transfer arranement! .$ec! BB-# .;/, 1!"! ;DCa/Se,(&)n 91- /ceptional Cases! - *n exceptional or meritorious cases where substantial benefits will accrue to the economy, such as hih technoloy content, increase in forein exchane earnins, employment eneration, reional dispersal of industries andIor substitution with or use of local raw materials, or in the case of 6oard of *nvestments, reistered companies with pioneer status, exemption from any of the above re%uirements may be allowed by the Documentation, *nformation and Technoloy Transfer 6ureau after evaluation thereof on a case by case basis! .n/Se,(&)n 92- )on5"egistration with the Documentation, 2nformation and -echnolog% -ransfer $ureau! - Technoloy transfer arranements that conform with the provisions of $ections ED and E> need not be reisteredwith the Documentation, *nformation and Technoloy Transfer 6ureau! 3on-conformance with any of the provisions of $ections E> and EE, however, shall automatically render the technoloy transfer arranement unenforceable, unless said technoloy transfer arranement is approved and reistered with the Documentation, *nformation and Technoloy Transfer 6ureau under the provisions of $ection ).b/ That the description and the claims do not comply with the prescribed re%uirements).c/ That any drawin which is necessary for the understandin of the invention has not been furnished).d/ That the owner of the utility model reistration is not the inventor or his successor in title! .$ecs! CC,CD, and C>, 1!"! 3o! ;DCa/Se,(&)n 110- Con!ersion of 0atent Applications or Applications for 3tilit% :odel "egistration! - ;;:!;! "t any time before the rant or refusal of a patent, an applicant for a patent may, upon payment of the prescribed fee, convert his application into an application for reistration of a utility model, which shall be accorded the filin date of the initial application! "n application may be converted only once!;;:!9! "t any time before the rant or refusal of a utility model reistration, an applicant for a utility model reistration may, upon payment of the prescribed fee, convert his application into a patent application, which shall be accorded the filin date of the initial application! .$ec! CE, 1!"! 3o! ;DCa/Se,(&)n 111- 0rohi1ition against .iling of 0arallel Applications! - "n applicant may not file two .9/ applicationsfor the same sub'ect, one for utility model reistration and the other for the rant of a patent whether simultaneously or consecutively! .$ec! C - *nventions #reated Pursuant to a #ommission)$ection 9E - 1iht to a Patent)$ection 9< - 5irst to 5ile 1ule)$ection B;-1iht of Priority- Provided, That the application for industrial desin shall be filed within six .D/ months from the earliest filin date of the correspondin forein application)$ection BB - "ppointment of "ent or 1epresentative)$ection C; - 1efusal of the "pplication)$ections CD toD:- $urrender, #orrection of and #hanes in Patent)#2"PT,1 4**- 1emedies of a Person with a 1iht to Patent)#2"PT,1 4***- 1ihts of Patentees and *nfrinement of Patents) and75#2"PT,1 7*- "ssinment and Transmission of 1ihts!;;!; *n any action arisin under this "ct, in which a violation of any riht of the owner of the reistered mark is established, the court may order thatoods found to be infrinin be, without compensation of any sort, disposed of outside the channels of commerce in such a manner as to avoid any harm caused to the riht holder, or destroyed) and all labels, sins, prints, packaes, wrappers, receptacles and advertisements in the possession of the defendant, bearin the reistered mark or trade name or any reproduction, counterfeit, copy or colorable imitation thereof, all plates, molds, matrices and other means of makin the same, shall be delivered up and destroyed!;C>!9! *n reard to counterfeit oods, the simple removal of the trademark affixed shall not be sufficient other than in exceptional cases which shall be determined by the 1eulations, to permit the release of the oods into the channels of commerce! .$ec! 9=, 1!"! 3o! ;DDa/85Se,(&)n 153- Damages# "e;uirement of )otice! - *n any suit for infrinement, the owner of the reistered mark shall not be entitled to recover profits or damaes unless the acts have been committed with knowlede that such imitation is likely to cause confusion, or to cause mistake, or to deceive! $uch knowlede is presumed if the reistrant ives notice that his mark is reistered by displayin with the mark the words 8"1eistered ?ark" or the letter 1 within a circle or if the defendant had otherwise actual notice of the reistration! .$ec! 9;, 1!"! 3o! ;DDa/Se,(&)n 159- 9imitations to Actions for 2nfringement! - 3otwithstandin any other provision of this "ct, the remedies iven to the owner of a riht infrined under this "ct shall be limited as follows-;C!B! *n addition to the rounds provided in $ection ;=!=! The reistration of a collective mark, or an application therefor shall not be the sub'ect of a license contract! .$ec! =:, 1!"! 3o! ;DDa/Se,(&)n 163- 3nfair Competition, "ights, "egulation and "emedies! - ;DE!;! " person who has identified in the mind of the public the oods he manufactures or deals in, his business or services from those of others, whether or not a reistered mark is employed, has a property riht in the oodwill of the said oods, business or services so identified, which will be protected in the same manner as other property rihts!87;DE!9! "ny person who shall employ deception or any other means contrary to ood faith by which he shall passoff the oods manufactured by him or in which he deals, or his business, or services for those of the one havin established such oodwill, or who shall commit any acts calculated to produce said result, shall be uilty of unfair competition, and shall be sub'ect to an action therefor!;DE!B! *n particular, and without in any way limitin the scope of protection aainst unfair competition, the followin shall be deemed uilty of unfair competition-.a/ "ny person, who is sellin his oods and ives them the eneral appearance of oods of another manufacturer or dealer, either as to the oods themselves or in the wrappin of the packaes 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 oods offered are those of a manufacturer or dealer, other than the actual manufacturer or dealer, or who otherwise clothes the oods with such appearance as shall deceive the public and defraud another of his leitimate trade, or any subse%uent vendor of such oods or any aent of any vendor enaed in sellin such oods with a like purpose).b/ "ny person who by any artifice, or device, or who employs any other means calculated to induce the false belief that such person is offerin the services of another who has identified such services in the mind of the public) or.c/ "ny person who shall make any false statement in the course of trade or who shall commit any other act contrary to ood faith of a nature calculated to discredit the oods, business or services of another!;DE!=! The remedies provided by $ections ;CD, ;C> and ;D; shall apply mutatis mutandis! .$ec! 9;!9! " "collective work" is a work which has been created by two .9/ or more natural persons at the initiative and under the direction of another with the understandin that it will be disclosed by the latter under his own name and that contributin natural persons will not be identified);>;!B! "#ommunication to the public" or "communicate to the public" means the makin 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);>;!=! " "computer" is an electronic or similar device havin information-processin capabilities, and a "computer proram" is a set of instructions expressed in words, codes, schemes or in any other form, which is capable when incorporated in a medium that the computer can read, of causin the computer to perform or achieve a particular task or result);>;!C! "Public lendin" is the transfer of possession of the oriinal or a copy of a work or sound recordin 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);>;!D! "Public performance", in the case of a work other than an audiovisual work, is the recitation, playin, dancin, actin or otherwise performin the work, either directly or by means of any device or process) in the case of an audiovisual work, the showin of its imaes in se%uence and the makin of the sounds accompanyinit audible) and, in the case of a sound recordin, makin the recorded sounds audible at a place or at places where persons outside the normal circle of a family and that family8s closest social ac%uaintances 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 andIor at different times, and where the performance can be perceived without the need for communication within the meanin of $ubsection ;>;!B);>;!>! "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 re%uirements of the public, havin reard to the nature of the work);>;!E! "1ental" is the transfer of the possession of the oriinal or a copy of a work or a sound recordin for a limited period of time, for profit-makin purposes);>;!;!;:! " "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);>;!;;! " "work of the &overnment of the Philippines" is a work created by an officer or employee of the Philippine &overnment or any of its subdivisions and instrumentalities, includin overnment-owned or controlled corporations as a part of his reularly prescribed official duties!C!APTER IIORIGINA WOR=SSe,(&)n 172- 9iterar% and Artistic @orks! - ;>9!;! Aiterary and artistic works, hereinafter referred to as "works", are oriinal intellectual creations in the literary and artistic domain protected from the moment of their creation and shall include in particular-.a/ 6ooks, pamphlets, articles and other writins)89.b/ Periodicals and newspapers).c/ Aectures, sermons, addresses, dissertations prepared for oral delivery, whether or not reduced in writin or other material form).d/ Aetters).e/ Dramatic or dramatico-musical compositions) choreoraphic works or entertainment in dumb shows).f/ ?usical compositions, with or without words)./ 0orks of drawin, paintin, architecture, sculpture, enravin, lithoraphy or other works of art) models or desins for works of art).h/ Oriinal ornamental desins or models for articles of manufacture, whether or not reistrable as an industrial desin, and other works of applied art).i/ *llustrations, maps, plans, sketches, charts and three-dimensional works relative to eoraphy, toporaphy, architecture or science).'/ Drawins or plastic works of a scientific or technical character).k/ Photoraphic works includin works produced by a process analoous to photoraphy) lantern slides).l/ "udiovisual works and cinematoraphic works and works produced by a process analoous to cinematoraphy or any process for makin audio-visual recordins).m/ Pictorial illustrations and advertisements).n/ #omputer prorams) and.o/ Other literary, scholarly, scientific and artistic works!;>9!9! 0orks are protected by the sole fact of their creation, irrespective of their mode or form of expression, as well as of their content, %uality and purpose! .$ec! 9, P!D! 3o! =B!;! The followin derivative works shall also be protected by copyriht-.a/ Dramati(ations, translations, adaptations, abridments, arranements, and other alterations of literary or artistic works) and.b/ #ollections of literary, scholarly or artistic works, and compilations of data and other materials which are oriinal by reason of the selection or coordination or arranement of their contents! .$ec! 9, RPS and RLS, P!D! 3o! =B!9! The works referred to in pararaphs .a/ and .b/ of $ubsection ;>B!; shall be protected as new works- Provided however, That such new work shall not affect the force of any subsistin copyriht upon the oriinal works employed or any part thereof, or be construed to imply any riht to such use of the oriinal works, or to secure or extend copyriht in such oriinal works! .$ec! E, P!D! =>!C! Public display of the oriinal or a copy of the work);>>!D! Public performance of the work) and;>>!>! Other communication to the public of the work! .$ec! C, P! D! 3o! =9B of the #ivil #ode! .$ec! D, P!D! 3o! =9!;, ;>9!9 and ;>9!B of this "ct, there shall, for the purpose of completin the records of the 3ational Aibrary and the $upreme #ourt Aibrary, within three .B/ weeks, be reistered and deposited with it, by personal delivery or by reistered mail two .9/ complete copies or reproductions of the work in such form as the directors of said libraries may prescribe! " certificate of deposit shall be issued for which the prescribed fee shall be collected and the copyriht owner shall be exempt from makin additional deposit of the works with the 3ational Aibrary and the $upreme #ourt Aibrary under other laws! *f, within three .B/ weeks after receipt by the copyriht owner of a written demand from the directors for such deposit, the re%uired copies or reproductions are not delivered and the fee is not paid, the copyriht owner shall be liable to pay a fine e%uivalent to the re%uired fee per month of delay and to pay to the 3ational Aibrary and the $upreme #ourt Aibrary 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 3ationalAibrary and the $upreme #ourt Aibrary! .$ec! 9D, P!D! 3o! =, P!D! 3o! =