AN ACT PRESCRIBIN T!E INTE""ECT#A" PR$PERT% C$&E AN& ESTAB"IS!IN T!E INTE""ECT#A" PR$PERT% $''ICE, PR$(I&IN '$R ITS P$)ERS AN& '#NCTI$NS, AN& '$R $T!ER P#RP$SES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:: PART I T!E INTE""ECT#A" PR$PERT% $''ICE Section 1. Title. - This Act shall be known as the "Intellectual Property Code of the Philippines." Section 2. Declaration of State Policy. - The State recognies that an effecti!e intellectual and industrial property syste" is !ital to the de!elop"ent of do"estic and creati!e acti!ity# facilitates transfer of technology# attracts foreign in!est"ents# and ensures "arket access for our products. It shall protect and secure the e$clusi!e rights of scientists# in!entors# artists and other gifted citiens to their intellectual property and creations# particularly when beneficial to the people# for such periods as pro!ided in this Act. The use of intellectual property bears a social function. To this end# the State shall pro"ote the diffusion of knowledge and infor"ation for the pro"otion of national de!elop"ent and progress and the co""on good. It is also the policy of the State to strea"line ad"inistrati!e procedures of registering patents# trade"arks and copyright# to liberalie the registration on the transfer of technology# and to enhance the enforce"ent of intellectual property rights in the Philippines. %n& Section 3. International Conventions and Reciprocity. - Any person who is a national or who is do"iciled or has a real and effecti!e industrial establish"ent in a country which is a party to any con!ention# treaty or agree"ent relating to intellectual property rights or the repression of unfair co"petition# to which the Philippines is also a party# or e$tends reciprocal rights to nationals of the Philippines by law# shall be entitled to benefits to the e$tent necessary to gi!e effect to any pro!ision of such con!ention# 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& Section *. Definitions. - '.(. The ter" "intellectual property rights" consists of: a& Copyright and )elated )ights* b& Trade"arks and Ser!ice +arks* c& ,eographic Indications* d& Industrial -esigns* e& Patents* f& .ayout--esigns %Topographies& of Integrated Circuits* and g& Protection of /ndisclosed Infor"ation %n# T)IPS&. '.0. The ter" "technology transfer arrange"ents" refers to contracts or agree"ents in!ol!ing the transfer of syste"atic knowledge for the "anufacture of a product# the application of a process# or rendering of a ser!ice including "anage"ent contracts* and the transfer# assign"ent or licensing of all for"s of intellectual property rights# including licensing of co"puter software e$cept co"puter software de!eloped for "ass "arket. '.1. The ter" "2ffice" refers to the Intellectual Property 2ffice created by this Act. '.'. The ter" "IP2 ,aette" refers to the gaette published by the 2ffice under this Act. %n& Section +. unctions of the Intellectual Property !ffice "IP!#. - 3.(. To ad"inister and i"ple"ent the State policies declared in this Act# there is hereby created the Intellectual Property 2ffice %IP2& which shall ha!e the following functions: a& 4$a"ine applications for grant of letters patent for in!entions and register utility "odels and industrial designs* b& 4$a"ine applications for the registration of "arks# geographic indication# integrated circuits* c& )egister technology transfer arrange"ents and settle disputes in!ol!ing technology transfer pay"ents co!ered by the pro!isions of Part II# Chapter I5 on 6oluntary .icensing and de!elop and i"ple"ent strategies to pro"ote and facilitate technology transfer* d& Pro"ote the use of patent infor"ation as a tool for technology de!elop"ent* e& Publish regularly in its own publication the patents# "arks# utility "odels and industrial designs# issued and appro!ed# and the technology transfer arrange"ents registered* f& Ad"inistrati!ely ad7udicate contested proceedings affecting intellectual property rights* and g& Coordinate with other go!ern"ent agencies and the pri!ate sector efforts to for"ulate and i"ple"ent plans and policies to strengthen the protection of intellectual property rights in the country. 3.0. The 2ffice shall ha!e custody of all records# books# drawings# specifications# docu"ents# and other papers and things relating to intellectual property rights applications filed with the 2ffice. %n& Section 6. The !rgani$ational Structure of the IP!. - 8.(. The 2ffice shall be headed by a -irector ,eneral who shall be assisted by two %0& -eputies -irector ,eneral. 8.0. The 2ffice shall be di!ided into si$ %8& 9ureaus# each of which shall be headed by a -irector and assisted by an Assistant -irector. These 9ureaus are: a& The 9ureau of Patents* b& The 9ureau of Trade"arks* c& The 9ureau of .egal Affairs* d& The -ocu"entation# Infor"ation and Technology Transfer 9ureau* e& The +anage"ent Infor"ation Syste" and 4-P 9ureau* and f& The Ad"inistrati!e# :inancial and Personnel Ser!ices 9ureau. 8.1. The -irector ,eneral# -eputies -irector ,eneral# -irectors and Assistant -irectors shall be appointed by the President# and the other officers and e"ployees of the 2ffice by the Secretary of Trade and Industry# confor"ably with and under the Ci!il Ser!ice .aw. %n& Section 7. The Director %eneral and Deputies Director %eneral. - ;.(. :unctions. - The -irector ,eneral shall e$ercise the following powers and functions: a& +anage and direct all functions and acti!ities of the 2ffice# including the pro"ulgation of rules and regulations to i"ple"ent the ob7ecti!es# policies# plans# progra"s and pro7ects of the 2ffice: Pro!ided# That in the e$ercise of the authority to propose policies and standards in relation to the following: %(& the effecti!e# efficient# and econo"ical operations of the 2ffice re<uiring statutory enact"ent* %0& coordination with other agencies of go!ern"ent in relation to the enforce"ent of intellectual property rights* %1& the recognition of attorneys# agents# or other persons representing applicants or other parties before the 2ffice* and %'& the establish"ent of fees for the filing and processing of an application for a patent# utility "odel or industrial design or "ark or a collecti!e "ark# geographic indication and other "arks of ownership# and for all other ser!ices perfor"ed and "aterials furnished by the 2ffice# the -irector ,eneral shall be sub7ect to the super!ision of the Secretary of Trade and Industry* b& 4$ercise e$clusi!e appellate 7urisdiction o!er all decisions rendered by the -irector of .egal Affairs# the -irector of Patents# the -irector of Trade"arks# and the -irector of the -ocu"entation# Infor"ation and Technology Transfer 9ureau. The decisions of the -irector ,eneral in the e$ercise of his appellate 7urisdiction in respect of the decisions of the -irector of Patents# and the -irector of Trade"arks shall be appealable to the Court of Appeals in accordance with the )ules of Court* and those in respect of the decisions of the -irector of -ocu"entation# Infor"ation and Technology Transfer 9ureau shall be appealable to the Secretary of Trade and Industry* and c& 4$ercise original 7urisdiction to resol!e disputes relating to the ter"s of a license in!ol!ing the author=s right to public perfor"ance or other co""unication of his work. The decisions of the -irector ,eneral in these cases shall be appealable to the Secretary of Trade and Industry. ;.0. >ualifications. - The -irector ,eneral and the -eputies -irector ,eneral "ust be natural born citiens of the Philippines# at least thirty-fi!e %13& years of age on the day of their appoint"ent# holders of a college degree# and of pro!en co"petence# integrity# probity and independence: Pro!ided# That the -irector ,eneral and at least one %(& -eputy -irector ,eneral shall be "e"bers of the Philippine 9ar who ha!e engaged in the practice of law for at least ten %(?& years: Pro!ided further# That in the selection of the -irector ,eneral and the -eputies -irector ,eneral# consideration shall be gi!en to such <ualifications as would result# as far as practicable# in the balanced representation in the -irectorate ,eneral of the !arious fields of intellectual property. ;.1. Ter" of 2ffice. - The -irector ,eneral and the -eputies -irector ,eneral shall be appointed by the President for a ter" of fi!e %3& years and shall be eligible for reappoint"ent only once: Pro!ided# That the first -irector ,eneral shall ha!e a first ter" of se!en %;& years. Appoint"ent to any !acancy shall be only for the une$pired ter" of the predecessor. ;.'. The 2ffice of the -irector ,eneral. - The 2ffice of the -irector ,eneral shall consist of the -irector ,eneral and the -eputies -irector ,eneral# their i""ediate staff and such 2ffices and Ser!ices that the -irector ,eneral will set up to support directly the 2ffice of the -irector ,eneral. %n& Section 8. The Bureau of Patents. - The 9ureau of Patents shall ha!e the following functions: @.(. Search and e$a"ination of patent applications and the grant of patents* @.0. )egistration of utility "odels# industrial designs# and integrated circuits* and @.1. Conduct studies and researches in the field of patents in order to assist the -irector ,eneral in for"ulating policies on the ad"inistration and e$a"ination of patents. %n& Section 9. The Bureau of Trademar&s. - The 9ureau of Trade"arks shall ha!e the following functions: A.(. Search and e$a"ination of the applications for the registration of "arks# geographic indications and other "arks of ownership and the issuance of the certificates of registration* and A.0. Conduct studies and researches in the field of trade"arks in order to assist the -irector ,eneral in for"ulating policies on the ad"inistration and e$a"ination of trade"arks. %n& Section 1,. The Bureau of 'egal (ffairs. - The 9ureau of .egal Affairs shall ha!e the following functions: (?.(. Bear and decide opposition to the application for registration of "arks* cancellation of trade"arks* sub7ect to the pro!isions of Section 8'# cancellation of patents# utility "odels# and industrial designs* and petitions for co"pulsory licensing of patents* (?.0. %a& 4$ercise original 7urisdiction in ad"inistrati!e co"plaints for !iolations of laws in!ol!ing intellectual property rights: Pro!ided# That its 7urisdiction is li"ited to co"plaints where the total da"ages clai"ed are not less than Two hundred thousand pesos %P0??#???&: Pro!ided further# That a!ail"ent of the pro!isional re"edies "ay be granted in accordance with the )ules of Court. The -irector of .egal Affairs shall ha!e the power to hold and punish for conte"pt all those who disregard orders or writs issued in the course of the proceedings. %n& %b& After for"al in!estigation# the -irector for .egal Affairs "ay i"pose one %(& or "ore of the following ad"inistrati!e penalties: %i& The issuance of a cease and desist order which shall specify the acts that the respondent shall cease and desist fro" and shall re<uire hi" to sub"it a co"pliance report within a reasonable ti"e which shall be fi$ed in the order* %ii& The acceptance of a !oluntary assurance of co"pliance or discontinuance as "ay be i"posed. Such !oluntary assurance "ay include one or "ore of the following: %(& An assurance to co"ply with the pro!isions of the intellectual property law !iolated* %0& An assurance to refrain fro" engaging in unlawful and unfair acts and practices sub7ect of the for"al in!estigation* %1& An assurance to recall# replace# repair# or refund the "oney !alue of defecti!e goods distributed in co""erce* and %'& An assurance to rei"burse the co"plainant the e$penses and costs incurred in prosecuting the case in the 9ureau of .egal Affairs. The -irector of .egal Affairs "ay also re<uire the respondent to sub"it periodic co"pliance reports and file a bond to guarantee co"pliance of his undertaking* %iii& The conde"nation or seiure of products which are sub7ect of the offense. The goods seied hereunder shall be disposed of in such "anner as "ay be dee"ed appropriate by the -irector of .egal Affairs# such as by sale# donation to distressed local go!ern"ents or to charitable or relief institutions# e$portation# recycling into other goods# or any co"bination thereof# under such guidelines as he "ay pro!ide* %i!& The forfeiture of paraphernalia and all real and personal properties which ha!e been used in the co""ission of the offense* %!& The i"position of ad"inistrati!e fines in such a"ount as dee"ed reasonable by the -irector of .egal Affairs# which shall in no case be less than :i!e thousand pesos %P3#???& nor "ore than 2ne hundred fifty thousand pesos %P(3?#???&. In addition# an additional fine of not "ore than 2ne thousand pesos %P(#???& shall be i"posed for each day of continuing !iolation* %!i& The cancellation of any per"it# license# authority# or registration which "ay ha!e been granted by the 2ffice# or the suspension of the !alidity thereof for such period of ti"e as the -irector of .egal Affairs "ay dee" reasonable which shall not e$ceed one %(& year* %!ii& The withholding of any per"it# license# authority# or registration which is being secured by the respondent fro" the 2ffice* %!iii& The assess"ent of da"ages* %i$& Censure* and %$& 2ther analogous penalties or sanctions. %Secs. 8# ;# @# and A# 4$ecuti!e 2rder Co. A(1 D(A@1Ea& (?.1. The -irector ,eneral "ay by )egulations establish the procedure to go!ern the i"ple"entation of this Section. %n& Section 11. The Documentation) Information and Technology Transfer Bureau. - The -ocu"entation# Infor"ation and Technology Transfer 9ureau shall ha!e the following functions: ((.(. Support the search and e$a"ination acti!ities of the 2ffice through the following acti!ities: %a& +aintain and upkeep classification syste"s whether they be national or international such as the International Patent Classification %IPC& syste"* %b& Pro!ide ad!isory ser!ices for the deter"ination of search patterns* %c& +aintain search files and search roo"s and reference libraries* and %d& Adapt and package industrial property infor"ation. ((.0. 4stablish networks or inter"ediaries or regional representati!es* ((.1. 4ducate the public and build awareness on intellectual property through the conduct of se"inars and lectures# and other si"ilar acti!ities* ((.'. 4stablish working relations with research and de!elop"ent institutions as well as with local and international intellectual property professional groups and the like* ((.3. Perfor" state-of-the-art searches* ((.8. Pro"ote the use of patent infor"ation as an effecti!e tool to facilitate the de!elop"ent of technology in the country* ((.;. Pro!ide technical# ad!isory# and other ser!ices relating to the licensing and pro"otion of technology# and carry out an efficient and effecti!e progra" for technology transfer* and ((.@. )egister technology transfer arrange"ents# and settle disputes in!ol!ing technology transfer pay"ents. %n& Section 12. The *anagement Information Services and +DP Bureau. - The +anage"ent Infor"ation Ser!ices and 4-P 9ureau shall: (0.(. Conduct auto"ation planning# research and de!elop"ent# testing of syste"s# contracts with fir"s# contracting# purchase and "aintenance of e<uip"ent# design and "aintenance of syste"s# user consultation# and the like* and (0.0. Pro!ide "anage"ent infor"ation support and ser!ice to the 2ffice. %n& Section 13. The (dministrative) inancial and Human Resource Development Service Bureau. - (1.(. The Ad"inistrati!e Ser!ice shall: %a& Pro!ide ser!ices relati!e to procure"ent and allocation of supplies and e<uip"ent# transportation# "essengerial work# cashiering# pay"ent of salaries and other 2ffice=s obligations# office "aintenance# proper safety and security# and other utility ser!ices* and co"ply with go!ern"ent regulatory re<uire"ents in the areas of perfor"ance appraisal# co"pensation and benefits# e"ploy"ent records and reports* %b& )ecei!e all applications filed with the 2ffice and collect fees therefor# and %c& Publish patent applications and grants# trade"ark applications# and registration of "arks# industrial designs# utility "odels# geographic indication# and lay-out-designs of integrated circuits registrations. (1.0. The Patent and Trade"ark Ad"inistration Ser!ices shall perfor" the following functions a"ong others: %a& +aintain registers of assign"ents# "ergings# licenses# and bibliographic on patents and trade"arks* %b& Collect "aintenance fees# issue certified copies of docu"ents in its custody and perfor" si"ilar other acti!ities* and %c& Bold in custody all the applications filed with the office# and all patent grants# certificate of registrations issued by the office# and the like. (1.1. The :inancial Ser!ice shall for"ulate and "anage a financial progra" to ensure a!ailability and proper utiliation of funds* pro!ide for an effecti!e "onitoring syste" of the financial operations of the 2ffice* and (1.'. The Bu"an )esource -e!elop"ent Ser!ice shall design and i"ple"ent hu"an resource de!elop"ent plans and progra"s for the personnel of the 2ffice* pro!ide for present and future "anpower needs of the organiation* "aintain high "orale and fa!orable e"ployee attitudes towards the organiation through the continuing design and i"ple"entation of e"ployee de!elop"ent progra"s. %n& Section 1*. ,se of Intellectual Property Rights ees by the IP!. - ('.(. :or a "ore effecti!e and e$peditious i"ple"entation of this Act# the -irector ,eneral shall be authoried to retain# without need of a separate appro!al fro" any go!ern"ent agency# and sub7ect only to the e$isting accounting and auditing rules and regulations# all the fees# fines# royalties and other charges# collected by the 2ffice under this Act and the other laws that the 2ffice will be "andated to ad"inister# for use in its operations# like upgrading of its facilities# e<uip"ent outlay# hu"an resource de!elop"ent# and the ac<uisition of the appropriate office space# a"ong others# to i"pro!e the deli!ery of its ser!ices to the public. This a"ount# which shall be in addition to the 2ffice=s annual budget# shall be deposited and "aintained in a separate account or fund# which "ay be used or disbursed directly by the -irector ,eneral. ('.0. After fi!e %3& years fro" the co"ing into force of this Act# the -irector ,eneral shall# sub7ect to the appro!al of the Secretary of Trade and Industry# deter"ine if the fees and charges "entioned in Subsection ('.( hereof that the 2ffice shall collect are sufficient to "eet its budgetary re<uire"ents. If so# it shall retain all the fees and charges it shall collect under the sa"e conditions indicated in said Subsection ('.( but shall forthwith# cease to recei!e any funds fro" the annual budget of the Cational ,o!ern"ent* if not# the pro!isions of said Subsection ('.( shall continue to apply until such ti"e when the -irector ,eneral# sub7ect to the appro!al of the Secretary of Trade and Industry# certifies that the abo!e-stated fees and charges the 2ffice shall collect are enough to fund its operations. %n& Section 1+. Special Technical and Scientific (ssistance. - The -irector ,eneral is e"powered to obtain the assistance of technical# scientific or other <ualified officers and e"ployees of other depart"ents# bureaus# offices# agencies and instru"entalities of the ,o!ern"ent# including corporations owned# controlled or operated by the ,o!ern"ent# when dee"ed necessary in the consideration of any "atter sub"itted to the 2ffice relati!e to the enforce"ent of the pro!isions of this Act. %Sec. 1# ).A. Co. (83a& Section 16. Seal of !ffice. - The 2ffice shall ha!e a seal# the for" and design of which shall be appro!ed by the -irector ,eneral. %Sec. '# ).A. Co. (83a& Section 17. Publication of 'a-s and Regulations. - The -irector ,eneral shall cause to be printed and "ake a!ailable for distribution# pa"phlet copies of this Act# other pertinent laws# e$ecuti!e orders and infor"ation circulars relating to "atters within the 7urisdiction of the 2ffice. %Sec. 3# ).A. Co. (83a& Section 18. The IP! %a$ette. - All "atters re<uired to be published under this Act shall be published in the 2ffice=s own publication to be known as the IP2 ,aette. %n& Section 19. Dis.ualification of !fficers and +mployees of the !ffice. - All officers and e"ployees of the 2ffice 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 "odel# industrial design or "ark nor ac<uire# e$cept by hereditary succession# any patent or utility "odel# design registration# or "ark or any right# title or interest therein during their e"ploy"ent and for one %(& year thereafter. %Sec. ;;# ).A. Co. (83a& PART II T!E "A) $N PATENTS C!APTER I ENERA" PR$(ISI$NS Section 2,. Definition of Terms ,sed in Part II) The 'a- on Patents. - As used in Part II# the following ter"s shall ha!e the following "eanings: 0?.(. "9ureau" "eans the 9ureau of Patents# 0?.0. "-irector" "eans the -irector of Patents* 0?.1. ")egulations" "eans the )ules of Practice in Patent Cases for"ulated by the -irector of Patents and pro"ulgated by the -irector ,eneral* 0?.'. "4$a"iner" "eans the patent e$a"iner* 0?.3. "Patent application" or "application" "eans an application for a patent for an in!ention e$cept in Chapters 5II and 5III# where "application" "eans an application for a utility "odel and an industrial design# respecti!ely* and 0?.8. "Priority date" "eans the date of filing of the foreign application for the sa"e in!ention referred to in Section 1( of this Act. %n& C!APTER II PATENTABI"IT% Section 21. Patentable Inventions. - Any technical solution of a proble" in any field of hu"an acti!ity which is new# in!ol!es an in!enti!e step and is industrially applicable shall be Patentable. It "ay be# or "ay relate to# a product# or process# or an i"pro!e"ent of any of the foregoing. %Sec. ;# ).A. Co. (83a& Section 22. /on0Patentable Inventions. - The following shall be e$cluded fro" patent protection: 00.(. -isco!eries# scientific theories and "athe"atical "ethods* 00.0. Sche"es# rules and "ethods of perfor"ing "ental acts# playing ga"es or doing business# and progra"s for co"puters* 00.1. +ethods for treat"ent of the hu"an or ani"al body by surgery or therapy and diagnostic "ethods practiced on the hu"an or ani"al body. This pro!ision shall not apply to products and co"position for use in any of these "ethods* 00.'. Plant !arieties or ani"al breeds or essentially biological process for the production of plants or ani"als. This pro!ision shall not apply to "icro-organis"s and non-biological and "icrobiological processes. Pro!isions under this subsection shall not preclude Congress to consider the enact"ent of a law pro!iding sui generis protection of plant !arieties and ani"al breeds and a syste" of co""unity intellectual rights protection: 00.3. Aesthetic creations* and 00.8. Anything which is contrary to public order or "orality. %Sec. @# ).A. Co. (83a& Section 23. /ovelty. . - An in!ention shall not be considered new if it for"s part of a prior art. %Sec. A# ).A. Co. (83a& Section 2*. Prior (rt. - Prior art shall consist of: 0'.(. 4!erything which has been "ade a!ailable to the public anywhere in the world# before the filing date or the priority date of the application clai"ing the in!ention* and 0'.0. The whole contents of an application for a patent# utility "odel# or industrial design registration# published in accordance with this Act# filed or effecti!e in the Philippines# with a filing or priority date that is earlier than the filing or priority date of the application: Pro!ided# That the application which has !alidly clai"ed the filing date of an earlier application under Section 1( of this Act# shall be prior art with effect as of the filing date of such earlier application: Pro!ided further# That the applicant or the in!entor identified in both applications are not one and the sa"e. %Sec. A# ).A. Co. (83a& Section 2+. /on0Pre1udicial Disclosure. . - 03.(. The disclosure of infor"ation contained in the application during the twel!e %(0& "onths preceding the filing date or the priority date of the application shall not pre7udice the applicant on the ground of lack of no!elty if such disclosure was "ade by: %a& The in!entor* %b& A patent office and the infor"ation was contained %a& in another application filed by the in!entor and should not ha!e been disclosed by the office# or %b& in an application filed without the knowledge or consent of the in!entor by a third party which obtained the infor"ation directly or indirectly fro" the in!entor* or %c& A third party which obtained the infor"ation directly or indirectly fro" the in!entor. 03.0. :or the purposes of Subsection 03.(# "in!entor" also "eans any person who# at the filing date of application# had the right to the patent. %n& Section 26. Inventive Step. - An in!ention in!ol!es an in!enti!e step if# ha!ing regard to prior art# it is not ob!ious to a person skilled in the art at the ti"e of the filing date or priority date of the application clai"ing the in!ention. %n& Section 27. Industrial (pplicability. - An in!ention that can be produced and used in any industry shall be industrially applicable. %n& C!APTER III RI!T T$ A PATENT Section 28. Right to a Patent. - The right to a patent belongs to the in!entor# his heirs# or assigns. Fhen two %0& or "ore persons ha!e 7ointly "ade an in!ention# the right to a patent shall belong to the" 7ointly. %Sec. (?# ).A. Co. (83a& Section 29. irst to ile Rule. - If two %0& or "ore persons ha!e "ade the in!ention separately and independently of each other# the right to the patent shall belong to the person who filed an application for such in!ention# or where two or "ore applications are filed for the sa"e in!ention# to the applicant who has the earliest filing date or# the earliest priority date. %1rd sentence# Sec. (?# ).A. Co. (83a.& Section 3,. Inventions Created Pursuant to a Commission. - 1?.(. The person who co""issions the work shall own the patent# unless otherwise pro!ided in the contract. 1?.0. In case the e"ployee "ade the in!ention in the course of his e"ploy"ent contract# the patent shall belong to: %a& The e"ployee# if the in!enti!e acti!ity is not a part of his regular duties e!en if the e"ployee uses the ti"e# facilities and "aterials of the e"ployer. %b& The e"ployer# if the in!ention is the result of the perfor"ance of his regularly- assigned duties# unless there is an agree"ent# e$press or i"plied# to the contrary. %n& Section 31. Right of Priority. . - An application for patent filed by any person who has pre!iously applied for the sa"e in!ention in another country which by treaty# con!ention# or law affords si"ilar pri!ileges to :ilipino citiens# shall be considered as filed as of the date of filing the foreign application: Pro!ided# That: %a& the local application e$pressly clai"s priority* %b& it is filed within twel!e %(0& "onths fro" the date the earliest foreign application was filed* and %c& a certified copy of the foreign application together with an 4nglish translation is filed within si$ %8& "onths fro" the date of filing in the Philippines. %Sec. (3# ).A. Co. (83a& C!APTER I( PATENT APP"ICATI$N Section 32. The (pplication. - 10.(. The patent application shall be in :ilipino or 4nglish and shall contain the following: %a& A re<uest for the grant of a patent* %b& A description of the in!ention* %c& -rawings necessary for the understanding of the in!ention* %d& 2ne or "ore clai"s* and %e& An abstract. 10.0. Co patent "ay be granted unless the application identifies the in!entor. If the applicant is not the in!entor# the 2ffice "ay re<uire hi" to sub"it said authority. %Sec. (1# ).A. Co. (83a& Section 33. (ppointment of (gent or Representative. - An applicant who is not a resident of the Philippines "ust appoint and "aintain a resident agent or representati!e in the Philippines upon who" notice or process for 7udicial or ad"inistrati!e procedure relating to the application for patent or the patent "ay be ser!ed. %Sec. ((# ).A. Co. (83a& Section 3*. The Re.uest. - The re<uest shall contain a petition for the grant of the patent# the na"e and other data of the applicant# the in!entor and the agent and the title of the in!ention. %n& Section 3+. Disclosure and Description of the Invention. - 13.(. -isclosure. - The application shall disclose the in!ention in a "anner sufficiently clear and co"plete for it to be carried out by a person skilled in the art. Fhere the application concerns a "icrobiological process or the product thereof and in!ol!es the use of a "icro-organis" which cannot be sufficiently disclosed in the application in such a way as to enable the in!ention to be carried out by a person skilled in the art# and such "aterial is not a!ailable to the public# the application shall be supple"ented by a deposit of such "aterial with an international depository institution. 13.0. -escription. - The )egulations shall prescribe the contents of the description and the order of presentation. %Sec. ('# ).A. Co. (83a& Section 36. The Claims. - 18.(. The application shall contain one %(& or "ore clai"s which shall define the "atter for which protection is sought. 4ach clai" shall be clear and concise# and shall be supported by the description. 18.0. The )egulations shall prescribe the "anner of the presentation of clai"s. %n& Section 37. The (bstract. - The abstract shall consist of a concise su""ary of the disclosure of the in!ention as contained in the description# clai"s and drawings in preferably not "ore than one hundred fifty %(3?& words. It "ust be drafted in a way which allows the clear understanding of the technical proble"# the gist of the solution of that proble" through the in!ention# and the principal use or uses of the in!ention. The abstract shall "erely ser!e for technical infor"ation. %n& Section 38. ,nity of Invention. - 1@.(. The application shall relate to one in!ention only or to a group of in!entions for"ing a single general in!enti!e concept. 1@.0. If se!eral independent in!entions which do not for" a single general in!enti!e concept are clai"ed in one application# the -irector "ay re<uire that the application be restricted to a single in!ention. A later application filed for an in!ention di!ided out shall be considered as ha!ing been filed on the sa"e day as the first application: Pro!ided# That the later application is filed within four %'& "onths after the re<uire"ent to di!ide beco"es final or within such additional ti"e# not e$ceeding four %'& "onths# as "ay be granted: Pro!ided further# That each di!isional application shall not go beyond the disclosure in the initial application. 1@.1. The fact that a patent has been granted on an application that did not co"ply with the re<uire"ent of unity of in!ention shall not be a ground to cancel the patent. %Sec. (;# ).A. Co. (83a& Section 39. Information Concerning Corresponding oreign (pplication for Patents. - The applicant shall# at the re<uest of the -irector# furnish hi" with the date and nu"ber of any application for a patent filed by hi" abroad# hereafter referred to as the "foreign application#" relating to the sa"e or essentially the sa"e in!ention as that clai"ed in the application filed with the 2ffice and other docu"ents relating to the foreign application. %n& C!APTER ( PR$CE&#RE '$R RANT $' PATENT Section *,. iling Date Re.uirements. - '?.(. The filing date of a patent application shall be the date of receipt by the 2ffice of at least the following ele"ents: %a& An e$press or i"plicit indication that a Philippine patent is sought* %b& Infor"ation identifying the applicant* and %c& -escription of the in!ention and one %(& or "ore clai"s in :ilipino or 4nglish. '?.0. If any of these ele"ents is not sub"itted within the period set by the )egulations# the application shall be considered withdrawn. %n& Section *1. (ccording a iling Date. - The 2ffice shall e$a"ine whether the patent application satisfies the re<uire"ents for the grant of date of filing as pro!ided in Section '? hereof. If the date of filing cannot be accorded# the applicant shall be gi!en an opportunity to correct the deficiencies in accordance with the i"ple"enting )egulations. If the application does not contain all the ele"ents indicated in Section '?# the filing date should be that date when all the ele"ents are recei!ed. If the deficiencies are not re"edied within the prescribed ti"e li"it# the application shall be considered withdrawn. %n& Section *2. ormality +2amination. - '0.(. After the patent application has been accorded a filing date and the re<uired fees ha!e been paid on ti"e in accordance with the )egulations# the applicant shall co"ply with the for"al re<uire"ents specified by Section 10 and the )egulations within the prescribed period# otherwise the application shall be considered withdrawn. '0.0. The )egulations shall deter"ine the procedure for the re-e$a"ination and re!i!al of an application as well as the appeal to the -irector of Patents fro" any final action by the e$a"iner. %Sec. (8# ).A. Co. (83a& Section *3. Classification and Search. - An application that has co"plied with the for"al re<uire"ents shall be classified and a search conducted to deter"ine the prior art. %n& Section **. Publication of Patent (pplication. - ''.(. The patent application shall be published in the IP2 ,aette together with a search docu"ent established by or on behalf of the 2ffice citing any docu"ents that reflect prior art# after the e$piration of eighteen % (@& "onths fro" the filing date or priority date. ''.0. After publication of a patent application# any interested party "ay inspect the application docu"ents filed with the 2ffice. ''.1. The -irector ,eneral sub7ect to the appro!al of the Secretary of Trade and Industry# "ay prohibit or restrict the publication of an application# if in his opinion# to do so would be pre7udicial to the national security and interests of the )epublic of the Philippines. %n& Section *+. Confidentiality Before Publication. - A patent application# which has not yet been published# and all related docu"ents# shall not be "ade a!ailable for inspection without the consent of the applicant. %n& Section *6. Rights Conferred by a Patent (pplication (fter Publication. - The applicant shall ha!e all the rights of a patentee under Section ;8 against any person who# without his authoriation# e$ercised any of the rights conferred under Section ;( of this Act in relation to the in!ention clai"ed in the published patent application# as if a patent had been granted for that in!ention: Pro!ided# That the said person had: '8.(. Actual knowledge that the in!ention that he was using was the sub7ect "atter of a published application* or '8.0. )ecei!ed written notice that the in!ention that he was using was the sub7ect "atter of a published application being identified in the said notice by its serial nu"ber: Pro!ided# That the action "ay not be filed until after the grant of a patent on the published application and within four %'& years fro" the co""ission of the acts co"plained of. %n& Section *7. !bservation by Third Parties. - :ollowing the publication of the patent application# any person "ay present obser!ations in writing concerning the patentability of the in!ention. Such obser!ations shall be co""unicated to the applicant who "ay co""ent on the". The 2ffice shall acknowledge and put such obser!ations and co""ent in the file of the application to which it relates. %n& Section *8. Re.uest for Substantive +2amination. - '@.(. The application shall be dee"ed withdrawn unless within si$ %8& "onths fro" the date of publication under Section '(# a written re<uest to deter"ine whether a patent application "eets the re<uire"ents of Sections 0( to 0; and Sections 10 to 1A and the fees ha!e been paid on ti"e. '@.0. Fithdrawal of the re<uest for e$a"ination shall be irre!ocable and shall not authorie the refund of any fee. %n& Section *9. (mendment of (pplication. - An applicant "ay a"end the patent application during e$a"ination: Pro!ided# That such a"end"ent shall not include new "atter outside the scope of the disclosure contained in the application as filed. %n& Section +,. %rant of Patent. - 3?.(. If the application "eets the re<uire"ents of this Act# the 2ffice shall grant the patent: Pro!ided# That all the fees are paid on ti"e. 3?.0. If the re<uired fees for grant and printing are not paid in due ti"e# the application shall be dee"ed to be withdrawn. 3?.1. A patent shall take effect on the date of the publication of the grant of the patent in the IP2 ,aette. %Sec. (@# ).A. Co. (83a& Section +1. Refusal of the (pplication. - 3(.(. The final order of refusal of the e$a"iner to grant the patent shall be appealable to the -irector in accordance with this Act. 3(.0. The )egulations shall pro!ide for the procedure by which an appeal fro" the order of refusal fro" the -irector shall be undertaken. %n& Section +2. Publication ,pon %rant of Patent. - 30.(. The grant of the patent together with other related infor"ation shall be published in the IP2 ,aette within the ti"e prescribed by the )egulations. 30.0. Any interested party "ay inspect the co"plete description# clai"s# and drawings of the patent on file with the 2ffice. %Sec. (@# ).A. Co. (83a& Section +3. Contents of Patent. - The patent shall be issued in the na"e of the )epublic of the Philippines under the seal of the 2ffice and shall be signed by the -irector# and registered together with the description# clai"s# and drawings# if any# in books and records of the 2ffice. %Secs. (A and 0?# ).A. Co. (83a& Section +*. Term of Patent. - The ter" of a patent shall be twenty %0?& years fro" the filing date of the application. %Sec. 0(# ).A. Co. (83a& Section ++. (nnual ees. - 33.(. To "aintain the patent application or patent# an annual fee shall be paid upon the e$piration of four %'& years fro" the date the application was published pursuant to Section '' hereof# and on each subse<uent anni!ersary of such date. Pay"ent "ay be "ade within three %1& "onths before the due date. The obligation to pay the annual fees shall ter"inate should the application be withdrawn# refused# or cancelled. 33.0. If the annual fee is not paid# the patent application shall be dee"ed withdrawn or the patent considered as lapsed fro" the day following the e$piration of the period within which the annual fees were due. A notice that the application is dee"ed withdrawn or the lapse of a patent for non- pay"ent of any annual fee shall be published in the IP2 ,aette and the lapse shall be recorded in the )egister of the 2ffice. 33.1. A grace period of si$ %8& "onths shall be granted for the pay"ent of the annual fee# upon pay"ent of the prescribed surcharge for delayed pay"ent. %Sec. 00# ).A. Co. (83a& Section +6. Surrender of Patent. - 38.(. The owner of the patent# with the consent of all persons ha!ing grants or licenses or other right# title or interest in and to the patent and the in!ention co!ered thereby# which ha!e been recorded in the 2ffice# "ay surrender his patent or any clai" or clai"s for"ing part thereof to the 2ffice for cancellation. 38.0. A person "ay gi!e notice to the 2ffice of his opposition to the surrender of a patent under this section# and if he does so# the 9ureau shall notify the proprietor of the patent and deter"ine the <uestion. 38.1. If the 2ffice is satisfied that the patent "ay properly be surrendered# he "ay accept the offer and# as fro" the day when notice of his acceptance is published in the IP2 ,aette# the patent shall cease to ha!e effect# but no action for infringe"ent shall lie and no right co"pensation shall accrue for any use of the patented in!ention before that day for the ser!ices of the go!ern"ent. %Sec. 0'# ).A. Co. (83a& Section +7. Correction of *ista&es of the !ffice. - The -irector shall ha!e the power to correct# without fee# any "istake in a patent incurred through the fault of the 2ffice when clearly disclosed in the records thereof# to "ake the patent confor" to the records. %Sec. 03# ).A. Co. (83& Section +8. Correction of *ista&e in the (pplication. - 2n re<uest of any interested person and pay"ent of the prescribed fee# the -irector is authoried to correct any "istake in a patent of a for"al and clerical nature# not incurred through the fault of the 2ffice. %Sec. 08# ).A. Co. (83a& Section +9. Changes in Patents. - 3A.(. The owner of a patent shall ha!e the right to re<uest the 9ureau to "ake the changes in the patent in order to: %a& .i"it the e$tent of the protection conferred by it* %b& Correct ob!ious "istakes or to correct clerical errors* and %c& Correct "istakes or errors# other than those referred to in letter %b&# "ade in good faith: Pro!ided# That where the change would result in a broadening of the e$tent of protection conferred by the patent# no re<uest "ay be "ade after the e$piration of two %0& years fro" the grant of a patent and the change shall not affect the rights of any third party which has relied on the patent# as published. 3A.0. Co change in the patent shall be per"itted under this section# where the change would result in the disclosure contained in the patent going beyond the disclosure contained in the application filed. 3A.1. If# and to the e$tent to which the 2ffice changes the patent according to this section# it shall publish the sa"e. %n& Section 6,. orm and Publication of (mendment. - An a"end"ent or correction of a patent shall be acco"plished by a certificate of such a"end"ent or correction# authenticated by the seal of the 2ffice and signed by the -irector# which certificate shall be attached to the patent. Cotice of such a"end"ent or correction shall be published in the IP2 ,aette and copies of the patent kept or furnished by the 2ffice shall include a copy of the certificate of a"end"ent or correction. %Sec. 0;# ).A. Co. (83& C!APTER (I CANCE""ATI$N $' PATENTS AN& S#BSTIT#TI$N $' PATENTEE Section 61. Cancellation of Patents. - 8(.(. Any interested person "ay# upon pay"ent of the re<uired fee# petition to cancel the patent or any clai" thereof# or parts of the clai"# on any of the following grounds: %a& That what is clai"ed as the in!ention is not new or Patentable* %b& That the patent does not disclose the in!ention in a "anner sufficiently clear and co"plete for it to be carried out by any person skilled in the art* or %c& That the patent is contrary to public order or "orality. 8(.0. Fhere the grounds for cancellation relate to so"e of the clai"s or parts of the clai"# cancellation "ay be effected to such e$tent only. %Secs. 0@ and 0A# ).A. Co. (83a& Section 62. Re.uirement of the Petition. - The petition for cancellation shall be in writing# !erified by the petitioner or by any person in his behalf who knows the facts# specify the grounds upon which it is based# include a state"ent of the facts to be relied upon# and filed with the 2ffice. Copies of printed publications or of patents of other countries# and other supporting docu"ents "entioned in the petition shall be attached thereto# together with the translation thereof in 4nglish# if not in the 4nglish language. %Sec. 1?# ).A. Co. (83& Section 63. /otice of Hearing. - /pon filing of a petition for cancellation# the -irector of .egal Affairs shall forthwith ser!e notice of the filing thereof upon the patentee and all persons ha!ing grants or licenses# or any other right# title or interest in and to the patent and the in!ention co!ered thereby# as appears of record in the 2ffice# and of notice of the date of hearing thereon on such persons and the petitioner. Cotice of the filing of the petition shall be published in the IP2 ,aette. %Sec. 1(# ).A. Co. (83a& Section 6*. Committee of Three. - In cases in!ol!ing highly technical issues# on "otion of any party# the -irector of .egal Affairs "ay order that the petition be heard and decided by a co""ittee co"posed of the -irector of .egal Affairs as chair"an and two %0& "e"bers who ha!e the e$perience or e$pertise in the field of technology to which the patent sought to be cancelled relates. The decision of the co""ittee shall be appealable to the -irector ,eneral. %n& Section 6+. Cancellation of the Patent. - 83.(. If the Co""ittee finds that a case for cancellation has been pro!ed# it shall order the patent or any specified clai" or clai"s thereof cancelled. 83.0. If the Co""ittee finds that# taking into consideration the a"end"ent "ade by the patentee during the cancellation proceedings# the patent and the in!ention to which it relates "eet the re<uire"ent of this Act# it "ay decide to "aintain the patent as a"ended: Pro!ided# That the fee for printing of a new patent is paid within the ti"e li"it prescribed in the )egulations. 83.1. If the fee for the printing of a new patent is not paid in due ti"e# the patent should be re!oked. 83.'. If the patent is a"ended under Subsection 83.0 hereof# the 9ureau shall# at the sa"e ti"e as it publishes the "ention of the cancellation decision# publish the abstract# representati!e clai"s and drawings indicating clearly what the a"end"ents consist of. %n& Section 66. +ffect of Cancellation of Patent or Claim. - The rights conferred by the patent or any specified clai" or clai"s cancelled shall ter"inate. Cotice of the cancellation shall be published in the IP2 ,aette. /nless restrained by the -irector ,eneral# the decision or order to cancel by -irector of .egal Affairs shall be i""ediately e$ecutory e!en pending appeal. %Sec. 10# ).A. Co. (83a& C!APTER (II RE-E&IES $' A PERS$N )IT! A RI!T T$ A PATENT Section 67. Patent (pplication by Persons /ot Having the Right to a Patent. . - 8;.(. If a person referred to in Section 0A other than the applicant# is declared by final court order or decision as ha!ing the right to the patent# such person "ay# within three %1& "onths after the decision has beco"e final: %a& Prosecute the application as his own application in place of the applicant* %b& :ile a new patent application in respect of the sa"e in!ention* %c& )e<uest that the application be refused* or %d& Seek cancellation of the patent# if one has already been issued. 8;.0. The pro!isions of Subsection 1@.0 shall apply "utatis "utandis to a new application filed under Subsection 8;. (%b&. %n& Section 68. Remedies of the True and (ctual Inventor. - If a person# who was depri!ed of the patent without his consent or through fraud is declared by final court order or decision to be the true and actual in!entor# the court shall order for his substitution as patentee# or at the option of the true in!entor# cancel the patent# and award actual and other da"ages in his fa!or if warranted by the circu"stances. %Sec. 11# ).A. Co. (83a& Section 69. Publication of the Court !rder. - The court shall furnish the 2ffice a copy of the order or decision referred to in Sections 8; and 8@# which shall be published in the IP2 ,aette within three %1& "onths fro" the date such order or decision beca"e final and e$ecutory# and shall be recorded in the register of the 2ffice. %n& Section 7,. Time to ile (ction in Court. - The actions indicated in Sections 8; and 8@ shall be filed within one %(& year fro" the date of publication "ade in accordance with Sections '' and 3(# respecti!ely. %n& C!APTER (III RI!TS $' PATENTEES AN& IN'RINE-ENT $' PATENTS Section 71. Rights Conferred by Patent. - ;(.(. A patent shall confer on its owner the following e$clusi!e rights: %a& Fhere the sub7ect "atter of a patent is a product# to restrain# prohibit and pre!ent any unauthoried person or entity fro" "aking# using# offering for sale# selling or i"porting that product* %b& Fhere the sub7ect "atter of a patent is a process# to restrain# pre!ent or prohibit any unauthoried person or entity fro" using the process# and fro" "anufacturing# dealing in# using# selling or offering for sale# or i"porting any product obtained directly or indirectly fro" such process. ;(.0. Patent owners shall also ha!e the right to assign# or transfer by succession the patent# and to conclude licensing contracts for the sa"e. %Sec. 1;# ).A. Co. (83a& Section 72. 'imitations of Patent Rights. - The owner of a patent has no right to pre!ent third parties fro" perfor"ing# without his authoriation# the acts referred to in Section ;( hereof in the following circu"stances: ;0.(. /sing a patented product which has been put on the "arket in the Philippines by the owner of the product# or with his e$press consent# insofar as such use is perfor"ed after that product has been so put on the said "arket* ;0.0. Fhere the act is done pri!ately and on a non-co""ercial scale or for a non-co""ercial purpose: Pro!ided# That it does not significantly pre7udice the econo"ic interests of the owner of the patent* ;0.1. Fhere the act consists of "aking or using e$clusi!ely for the purpose of e$peri"ents that relate to the sub7ect "atter of the patented in!ention* ;0.'. Fhere the act consists of the preparation for indi!idual cases# in a phar"acy or by a "edical professional# of a "edicine in accordance with a "edical prescription or acts concerning the "edicine so prepared* ;0.3. Fhere the in!ention is used in any ship# !essel# aircraft# or land !ehicle of any other country entering the territory of the Philippines te"porarily or accidentally: Pro!ided# That such in!ention is used e$clusi!ely for the needs of the ship# !essel# aircraft# or land !ehicle and not used for the "anufacturing of anything to be sold within the Philippines. %Secs. 1@ and 1A# ).A. Co. (83a& Section 73. Prior ,ser. - ;1.(. Cotwithstanding Section ;0 hereof# any prior user# who# in good faith was using the in!ention or has undertaken serious preparations to use the in!ention in his enterprise or business# before the filing date or priority date of the application on which a patent is granted# shall ha!e the right to continue the use thereof as en!isaged in such preparations within the territory where the patent produces its effect. ;1.0. The right of the prior user "ay 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 ha!e been "ade. %Sec. '?# ).A. Co. (83a& Section 7*. ,se of Invention by %overnment. - ;'.(. A ,o!ern"ent agency or third person authoried by the ,o!ern"ent "ay e$ploit the in!ention e!en without agree"ent of the patent owner where: %a& The public interest# in particular# national security# nutrition# health or the de!elop"ent of other sectors# as deter"ined by the appropriate agency of the go!ern"ent# so re<uires* or %b& A 7udicial or ad"inistrati!e body has deter"ined that the "anner of e$ploitation# by the owner of the patent or his licensee is anti-co"petiti!e. ;'.0. The use by the ,o!ern"ent# or third person authoried by the ,o!ern"ent shall be sub7ect# "utatis "utandis# to the conditions set forth in Sections A3 to A; and (?? to (?0. %Sec. '(# ).A. Co. (83a& Section 7+. +2tent of Protection and Interpretation of Claims. - ;3.(. The e$tent of protection conferred by the patent shall be deter"ined by the clai"s# which are to be interpreted in the light of the description and drawings. ;3.0. :or the purpose of deter"ining the e$tent of protection conferred by the patent# due account shall be taken of ele"ents which are e<ui!alent to the ele"ents e$pressed in the clai"s# so that a clai" shall be considered to co!er not only all the ele"ents as e$pressed therein# but also e<ui!alents. %n& Section 76. Civil (ction for Infringement. - ;8.(. The "aking# using# offering for sale# selling# or i"porting a patented product or a product obtained directly or indirectly fro" a patented process# or the use of a patented process without the authoriation of the patentee constitutes patent infringe"ent. ;8.0. Any patentee# or anyone possessing any right# title or interest in and to the patented in!ention# whose rights ha!e been infringed# "ay bring a ci!il action before a court of co"petent 7urisdiction# to reco!er fro" the infringer such da"ages sustained thereby# plus attorney=s fees and other e$penses of litigation# and to secure an in7unction for the protection of his rights. ;8.1. If the da"ages are inade<uate or cannot be readily ascertained with reasonable certainty# the court "ay award by way of da"ages a su" e<ui!alent to reasonable royalty. ;8.'. The court "ay# according to the circu"stances of the case# award da"ages in a su" abo!e the a"ount found as actual da"ages sustained: Pro!ided# That the award does not e$ceed three %1& ti"es the a"ount of such actual da"ages. ;8.3. The court "ay# in its discretion# order that the infringing goods# "aterials and i"ple"ents predo"inantly used in the infringe"ent be disposed of outside the channels of co""erce or destroyed# without co"pensation. ;8.8. Anyone who acti!ely induces the infringe"ent of a patent or pro!ides the infringer with a co"ponent of a patented product or of a product produced because of a patented process knowing it to be especially adopted for infringing the patented in!ention and not suitable for substantial non- infringing use shall be liable as a contributory infringer and shall be 7ointly and se!erally liable with the infringer. %Sec. '0# ).A. Co. (83a& Section 77. Infringement (ction by a oreign /ational. - Any foreign national or 7uridical entity who "eets the re<uire"ents of Section 1 and not engaged in business in the Philippines# to which a patent has been granted or assigned under this Act# "ay bring an action for infringe"ent of patent# whether or not it is licensed to do business in the Philippines under e$isting law. %Sec. '(-A# ).A. Co. (83a& Section 78. Process Patents3 Burden of Proof . - If the sub7ect "atter of a patent is a process for obtaining a product# any identical product shall be presu"ed to ha!e been obtained through the use of the patented process if the product is new or there is substantial likelihood that the identical product was "ade by the process and the owner of the patent has been unable despite reasonable efforts# to deter"ine the process actually used. In ordering the defendant to pro!e that the process to obtain the identical product is different fro" the patented process# the court shall adopt "easures to protect# as far as practicable# his "anufacturing and business secrets. %n& Section 79. 'imitation of (ction for Damages. - Co da"ages can be reco!ered for acts of infringe"ent co""itted "ore than four %'& years before the institution of the action for infringe"ent. %Sec. '1# ).A. Co. (83& Section 8,. Damages) Re.uirement of /otice. - -a"ages cannot be reco!ered for acts of infringe"ent co""itted before the infringer had known# or had reasonable grounds to know of the patent. It is presu"ed 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 ad!ertising "aterial relating to the patented product or process# are placed the words "Philippine Patent" with the nu"ber of the patent. %Sec. ''# ).A. Co. (83a& Section 81. Defenses in (ction for Infringement. - In an action for infringe"ent# the defendant# in addition to other defenses a!ailable to hi"# "ay show the in!alidity of the patent# or any clai" thereof# on any of the grounds on which a petition of cancellation can be brought under Section 8( hereof. %Sec. '3# ).A. Co. (83& Section 82. Patent ound Invalid *ay be Cancelled. - In an action for infringe"ent# if the court shall find the patent or any clai" to be in!alid# it shall cancel the sa"e# and the -irector of .egal Affairs upon receipt of the final 7udg"ent of cancellation by the court# shall record that fact in the register of the 2ffice and shall publish a notice to that effect in the IP2 ,aette. %Sec. '8# ).A. Co. (83a& Section 83. (ssessor in Infringement (ction. - @1.(. Two %0& or "ore assessors "ay be appointed by the court. The assessors shall be possessed of the necessary scientific and technical knowledge re<uired by the sub7ect "atter in litigation. 4ither party "ay challenge the fitness of any assessor proposed for appoint"ent. @1.0. 4ach assessor shall recei!e a co"pensation in an a"ount to be fi$ed by the court and ad!anced by the co"plaining party# which shall be awarded as part of his costs should he pre!ail in the action. %Sec. ';# ).A. Co. (83a& Section 8*. Criminal (ction for Repetition of Infringement. - If infringe"ent is repeated by the infringer or by anyone in conni!ance with hi" after finality of the 7udg"ent of the court against the infringer# the offenders shall# without pre7udice to the institution of a ci!il action for da"ages# be cri"inally liable therefor and# upon con!iction# shall suffer i"prison"ent for the period of not less than si$ %8& "onths but not "ore than three %1& years andGor a fine of not less than 2ne hundred thousand pesos %P(??#???& but not "ore than Three hundred thousand pesos %P1??#???&# at the discretion of the court. The cri"inal action herein pro!ided shall prescribe in three %1& years fro" date of the co""ission of the cri"e. %Sec. '@# ).A. Co. (83a& C!APTER I. ($"#NTAR% "ICENSIN Section 8+. 4oluntary 'icense Contract. - To encourage the transfer and disse"ination of technology# pre!ent or control practices and conditions that "ay in particular cases constitute an abuse of intellectual property rights ha!ing an ad!erse effect on co"petition and trade# all technology transfer arrange"ents shall co"ply with the pro!isions of this Chapter. %n& Section 86. 5urisdiction to Settle Disputes on Royalties. - The -irector of the -ocu"entation# Infor"ation and Technology Transfer 9ureau shall e$ercise <uasi-7udicial 7urisdiction in the settle"ent of disputes between parties to a technology transfer arrange"ent arising fro" technology transfer pay"ents# including the fi$ing of appropriate a"ount or rate of royalty. %n& Section 87. Prohibited Clauses. - 4$cept in cases under Section A(# the following pro!isions shall be dee"ed pri"a facie to ha!e an ad!erse effect on co"petition and trade: @;.(. Those which i"pose upon the licensee the obligation to ac<uire fro" a specific source capital goods# inter"ediate products# raw "aterials# and other technologies# or of per"anently e"ploying personnel indicated by the licensor* @;.0. Those pursuant to which the licensor reser!es the right to fi$ the sale or resale prices of the products "anufactured on the basis of the license* @;.1. Those that contain restrictions regarding the !olu"e and structure of production* @;.'. Those that prohibit the use of co"petiti!e technologies in a non-e$clusi!e technology transfer agree"ent* @;.3. Those that establish a full or partial purchase option in fa!or of the licensor* @;.8. Those that obligate the licensee to transfer for free to the licensor the in!entions or i"pro!e"ents that "ay be obtained through the use of the licensed technology* @;.;. Those that re<uire pay"ent of royalties to the owners of patents for patents which are not used* @;.@. Those that prohibit the licensee to e$port the licensed product unless 7ustified for the protection of the legiti"ate interest of the licensor such as e$ports to countries where e$clusi!e licenses to "anufacture andGor distribute the licensed product%s& ha!e already been granted* @;.A. Those which restrict the use of the technology supplied after the e$piration of the technology transfer arrange"ent# e$cept in cases of early ter"ination of the technology transfer arrange"ent due to reason%s& attributable to the licensee* @;.(?. Those which re<uire pay"ents for patents and other industrial property rights after their e$piration# ter"ination arrange"ent* @;.((. Those which re<uire that the technology recipient shall not contest the !alidity of any of the patents of the technology supplier* @;.(0. Those which restrict the research and de!elop"ent acti!ities of the licensee designed to absorb and adapt the transferred technology to local conditions or to initiate research and de!elop"ent progra"s in connection with new products# processes or e<uip"ent* @;.(1. Those which pre!ent the licensee fro" adapting the i"ported technology to local conditions# or introducing inno!ation to it# as long as it does not i"pair the <uality standards prescribed by the licensor* @;.('. Those which e$e"pt the licensor for liability for non-fulfil"ent of his responsibilities under the technology transfer arrange"ent andGor liability arising fro" third party suits brought about by the use of the licensed product or the licensed technology* and @;.(3. 2ther clauses with e<ui!alent effects. %Sec. 11-C %0&# ).A (83a& Section 88. *andatory Provisions. - The following pro!isions shall be included in !oluntary license contracts: @@.(. That the laws of the Philippines shall go!ern the interpretation of the sa"e and in the e!ent of litigation# the !enue shall be the proper court in the place where the licensee has its principal office* @@.0. Continued access to i"pro!e"ents in techni<ues and processes related to the technology shall be "ade a!ailable during the period of the technology transfer arrange"ent* @@.1. In the e!ent the technology transfer arrange"ent shall pro!ide for arbitration# the Procedure of Arbitration of the Arbitration .aw of the Philippines or the Arbitration )ules of the /nited Cations Co""ission on International Trade .aw %/CCIT)A.& or the )ules of Conciliation and Arbitration of the International Cha"ber of Co""erce %ICC& shall apply and the !enue of arbitration shall be the Philippines or any neutral country* and @@.'. The Philippine ta$es on all pay"ents relating to the technology transfer arrange"ent shall be borne by the licensor. %n& Section 89. Rights of 'icensor. - In the absence of any pro!ision to the contrary in the technology transfer arrange"ent# the grant of a license shall not pre!ent the licensor fro" granting further licenses to third person nor fro" e$ploiting the sub7ect "atter of the technology transfer arrange"ent hi"self. %Sec. 11-9# ).A. (83a& Section 9,. Rights of 'icensee. - The licensee shall be entitled to e$ploit the sub7ect "atter of the technology transfer arrange"ent during the whole ter" of the technology transfer arrange"ent. %Sec. 11-C %(&# ).A. (83a& Section 91. +2ceptional Cases. - In e$ceptional or "eritorious cases where substantial benefits will accrue to the econo"y# such as high technology content# increase in foreign e$change earnings# e"ploy"ent generation# regional dispersal of industries andGor substitution with or use of local raw "aterials# or in the case of 9oard of In!est"ents# registered co"panies with pioneer status# e$e"ption fro" any of the abo!e re<uire"ents "ay be allowed by the -ocu"entation# Infor"ation and Technology Transfer 9ureau after e!aluation thereof on a case by case basis. %n& Section 92. /on0Registration -ith the Documentation) Information and Technology Transfer Bureau. - Technology transfer arrange"ents that confor" with the pro!isions of Sections @8 and @; need not be registered with the -ocu"entation# Infor"ation and Technology Transfer 9ureau. Con- confor"ance with any of the pro!isions of Sections @; and @@# howe!er# shall auto"atically render the technology transfer arrange"ent unenforceable# unless said technology transfer arrange"ent is appro!ed and registered with the -ocu"entation# Infor"ation and Technology Transfer 9ureau under the pro!isions of Section A( on e$ceptional cases. %n& C!APTER . C$-P#"S$R% "ICENSIN Section 93. %rounds for Compulsory 'icensing. - The -irector of .egal Affairs "ay grant a license to e$ploit a patented in!ention# e!en without the agree"ent of the patent owner# in fa!or of any person who has shown his capability to e$ploit the in!ention# under any of the following circu"stances: A1.(. Cational e"ergency or other circu"stances of e$tre"e urgency* A1.0. Fhere the public interest# in particular# national security# nutrition# health or the de!elop"ent of other !ital sectors of the national econo"y as deter"ined by the appropriate agency of the ,o!ern"ent# so re<uires* or A1.1. Fhere a 7udicial or ad"inistrati!e body has deter"ined that the "anner of e$ploitation by the owner of the patent or his licensee is anti-co"petiti!e* or A1.'. In case of public non-co""ercial use of the patent by the patentee# without satisfactory reason* A1.3. If the patented in!ention is not being worked in the Philippines on a co""ercial scale# although capable of being worked# without satisfactory reason: Pro!ided# That the i"portation of the patented article shall constitute working or using the patent. %Secs. 1'# 1'-A# 1'-9# ).A. Co. (83a& Section 9*. Period for iling a Petition for a Compulsory 'icense. - A'.(. A co"pulsory license "ay not be applied for on the ground stated in Subsection A1.3 before the e$piration of a period of four %'& years fro" the date of filing of the application or three %1& years fro" the date of the patent whiche!er period e$pires last. A'.0. A co"pulsory license which is applied for on any of the grounds stated in Subsections A1.0# A1.1# and A1.' and Section A; "ay be applied for at any ti"e after the grant of the patent. %Sec. 1'%(&# ).A. Co. (83& Section 9+. Re.uirement to !btain a 'icense on Reasonable Commercial Terms. - A3.(. The license will only be granted after the petitioner has "ade efforts to obtain authoriation fro" the patent owner on reasonable co""ercial ter"s and conditions but such efforts ha!e not been successful within a reasonable period of ti"e. A3.0. The re<uire"ent under Subsection A3.( shall not apply in the following cases: %a& Fhere the petition for co"pulsory license seeks to re"edy a practice deter"ined after 7udicial or ad"inistrati!e process to be anti-co"petiti!e* %b& In situations of national e"ergency or other circu"stances of e$tre"e urgency* %c& In cases of public non-co""ercial use. A3.1. In situations of national e"ergency or other circu"stances of e$tre"e urgency# the right holder shall be notified as soon as reasonably practicable. A3.'. In the case of public non-co""ercial use# where the go!ern"ent or contractor# without "aking a patent search# knows or has de"onstrable grounds to know that a !alid patent is or will be used by or for the go!ern"ent# the right holder shall be infor"ed pro"ptly. %n& Section 96. Compulsory 'icensing of Patents Involving Semi0Conductor Technology. - In the case of co"pulsory licensing of patents in!ol!ing se"i-conductor technology# the license "ay only be granted in case of public non-co""ercial use or to re"edy a practice deter"ined after 7udicial or ad"inistrati!e process to be anti-co"petiti!e. %n& Section 97. Compulsory 'icense Based on Interdependence of Patents. - If the in!ention protected by a patent# hereafter referred to as the "second patent#" within the country cannot be worked without infringing another patent# hereafter referred to as the "first patent#" granted on a prior application or benefiting fro" an earlier priority# a co"pulsory license "ay be granted to the owner of the second patent to the e$tent necessary for the working of his in!ention# sub7ect to the following conditions: A;.(. The in!ention clai"ed in the second patent in!ol!es an i"portant technical ad!ance of considerable econo"ic significance in relation to the first patent* A;.0. The owner of the first patent shall be entitled to a cross-license on reasonable ter"s to use the in!ention clai"ed in the second patent* A;.1. The use authoried in respect of the first patent shall be non-assignable e$cept with the assign"ent of the second patent* and A;.'. The ter"s and conditions of Sections A3# A8 and A@ to (?? of this Act. %Sec. 1'-C# ).A. Co. (83a& Section 98. orm and Contents of Petition. - The petition for co"pulsory licensing "ust be in writing# !erified by the petitioner and acco"panied by pay"ent of the re<uired filing fee. It shall contain the na"e and address of the petitioner as well as those of the respondents# the nu"ber and date of issue of the patent in connection with which co"pulsory license is sought# the na"e of the patentee# the title of the in!ention# the statutory grounds upon which co"pulsory license is sought# the ulti"ate facts constituting the petitioner=s cause of action# and the relief prayed for. %Sec. 1'--# ).A. Co. (83& Section 99. /otice of Hearing. - AA.(. /pon filing of a petition# the -irector of .egal Affairs shall forthwith ser!e notice of the filing thereof upon the patent owner and all persons ha!ing grants or licenses# or any other right# title or interest in and to the patent and in!ention co!ered thereby as appears of record in the 2ffice# and of notice of the date of hearing thereon# on such persons and petitioner. The resident agent or representati!e appointed in accordance with Section 11 hereof# shall be bound to accept ser!ice of notice of the filing of the petition within the "eaning of this Section. AA.0. In e!ery case# the notice shall be published by the said 2ffice in a newspaper of general circulation# once a week for three %1& consecuti!e weeks and once in the IP2 ,aette at applicant=s e$pense. %Sec. 1'-4# ).A. Co. (83& Section 1,,. Terms and Conditions of Compulsory 'icense. - The basic ter"s and conditions including the rate of royalties of a co"pulsory license shall be fi$ed by the -irector of .egal Affairs sub7ect to the following conditions: (??.(. The scope and duration of such license shall be li"ited to the purpose for which it was authoried* (??.0. The license shall be non-e$clusi!e* (??.1. The license shall be non-assignable# e$cept with that part of the enterprise or business with which the in!ention is being e$ploited* (??.'. /se of the sub7ect "atter of the license shall be de!oted predo"inantly for the supply of the Philippine "arket: Pro!ided# That this li"itation shall not apply where the grant of the license is based on the ground that the patentee=s "anner of e$ploiting the patent is deter"ined by 7udicial or ad"inistrati!e process# to be anti-co"petiti!e. (??.3. The license "ay be ter"inated upon proper showing that circu"stances which led to its grant ha!e ceased to e$ist and are unlikely to recur: Pro!ided# That ade<uate protection shall be afforded to the legiti"ate interest of the licensee* and (??.8. The patentee shall be paid ade<uate re"uneration taking into account the econo"ic !alue of the grant or authoriation# e$cept that in cases where the license was granted to re"edy a practice which was deter"ined after 7udicial or ad"inistrati!e process# to be anti-co"petiti!e# the need to correct the anti-co"petiti!e practice "ay be taken into account in fi$ing the a"ount of re"uneration. %Sec. 13-9# ).A. Co. (83a& Section 1,1. (mendment) Cancellation) Surrender of Compulsory 'icense. - (?(.(. /pon the re<uest of the patentee or the licensee# the -irector of .egal Affairs "ay a"end the decision granting the co"pulsory license# upon proper showing of new facts or circu"stances 7ustifying such a"end"ent. (?(.0. /pon the re<uest of the patentee# the said -irector "ay cancel the co"pulsory license: %a& If the ground for the grant of the co"pulsory license no longer e$ists and is unlikely to recur* %b& If the licensee has neither begun to supply the do"estic "arket nor "ade serious preparation therefor* %c& If the licensee has not co"plied with the prescribed ter"s of the license* (?(.1. The licensee "ay surrender the license by a written declaration sub"itted to the 2ffice. (?(.'. The said -irector shall cause the a"end"ent# surrender# or cancellation in the )egister# notify the patentee# andGor the licensee# and cause notice thereof to be published in the IP2 ,aette. %Sec. 13--# ).A. Co. (83a& Section 1,2. 'icensee6s +2emption from 'iability. - Any person who works a patented product# substance andGor process under a license granted under this Chapter# shall be free fro" any liability for infringe"ent: Pro!ided howe!er# That in the case of !oluntary licensing# no collusion with the licensor is pro!en. This is without pre7udice to the right of the rightful owner of the patent to reco!er fro" the licensor whate!er he "ay ha!e recei!ed as royalties under the license. %Sec. 13-4# ).A. Co. (83a& C!APTER .I ASSIN-ENT AN& TRANS-ISSI$N $' RI!TS Section 1,3. Transmission of Rights. - (?1.(. Patents or applications for patents and in!ention to which they relate# shall be protected in the sa"e way as the rights of other property under the Ci!il Code. (?1.0. In!entions and any right# title or interest in and to patents and in!entions co!ered thereby# "ay be assigned or trans"itted by inheritance or be<uest or "ay be the sub7ect of a license contract. %Sec. 3?# ).A. Co. (83a& Section 1,*. (ssignment of Inventions. - An assign"ent "ay be of the entire right# title or interest in and to the patent and the in!ention co!ered thereby# or of an undi!ided share of the entire patent and in!ention# in which e!ent the parties beco"e 7oint owners thereof. An assign"ent "ay be li"ited to a specified territory. %Sec. 3(# ).A. Co. (83& Section 1,+. orm of (ssignment. - The assign"ent "ust be in writing# acknowledged before a notary public or other officer authoried to ad"inister oath or perfor" notarial acts# and certified under the hand and official seal of the notary or such other officer. %Sec. 30# ).A. Co. (83& Section 1,6. Recording. - (?8.(. The 2ffice shall record assign"ents# licenses and other instru"ents relating to the trans"ission of any right# title or interest in and to in!entions# and patents or application for patents or in!entions to which they relate# which are presented in due for" to the 2ffice for registration# in books and records kept for the purpose. The original docu"ents together with a signed duplicate thereof shall be filed# and the contents thereof should be kept confidential. If the original is not a!ailable# an authenticated copy thereof in duplicate "ay be filed. /pon recording# the 2ffice shall retain the duplicate# return the original or the authenticated copy to the party who filed the sa"e and notice of the recording shall be published in the IP2 ,aette. (?8.0. Such instru"ents shall be !oid as against any subse<uent purchaser or "ortgagee for !aluable consideration and without notice# unless# it is so recorded in the 2ffice# within three %1& "onths fro" the date of said instru"ent# or prior to the subse<uent purchase or "ortgage. %Sec. 31# ).A. Co. (83a& Section 1,7. Rights of 5oint !-ners. - If two %0& or "ore persons 7ointly own a patent and the in!ention co!ered thereby# either by the issuance of the patent in their 7oint fa!or or by reason of the assign"ent of an undi!ided share in the patent and in!ention or by reason of the succession in title to such share# each of the 7oint owners shall be entitled to personally "ake# use# sell# or i"port the in!ention for his own profit: Pro!ided# howe!er# That neither of the 7oint 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 di!iding the proceeds with such other owner or owners. %Sec. 3'# ).A. Co. (83& C!APTER .II REISTRATI$N $' #TI"IT% -$&E"S Section 1,8. (pplicability of Provisions Relating to Patents. - (?@.(. Sub7ect to Section (?A# the pro!isions go!erning patents shall apply# "utatis "utandis# to the registration of utility "odels. (?@.0. Fhere the right to a patent conflicts with the right to a utility "odel registration in the case referred to in Section 0A# the said pro!ision shall apply as if the word "patent" were replaced by the words "patent or utility "odel registration". %Sec. 33# ).A. Co. (83a& Section 1,9. Special Provisions Relating to ,tility *odels. - (?A.(. %a& An in!ention <ualifies for registration as a utility "odel if it is new and industrially applicable. %b& Section 0(# "Patentable In!entions"# shall apply e$cept the reference to in!enti!e step as a condition of protection. (?A.0. Sections '1 to 'A shall not apply in the case of applications for registration of a utility "odel. (?A.1. A utility "odel registration shall e$pire# without any possibility of renewal# at the end of the se!enth year after the date of the filing of the application. (?A.'. In proceedings under Sections 8( to 8'# the utility "odel registration shall be canceled on the following grounds: %a& That the clai"ed in!ention does not <ualify for registration as a utility "odel and does not "eet the re<uire"ents of registrability# in particular ha!ing regard to Subsection (?A.( and Sections 00# 01# 0' and 0;* %b& That the description and the clai"s do not co"ply with the prescribed re<uire"ents* %c& That any drawing which is necessary for the understanding of the in!ention has not been furnished* %d& That the owner of the utility "odel registration is not the in!entor or his successor in title. %Secs. 33# 38# and 3;# ).A. Co. (83a& Section 11,. Conversion of Patent (pplications or (pplications for ,tility *odel Registration. - ((?.(. At any ti"e before the grant or refusal of a patent# an applicant for a patent "ay# upon pay"ent of the prescribed fee# con!ert his application into an application for registration of a utility "odel# which shall be accorded the filing date of the initial application. An application "ay be con!erted only once. ((?.0. At any ti"e before the grant or refusal of a utility "odel registration# an applicant for a utility "odel registration "ay# upon pay"ent of the prescribed fee# con!ert his application into a patent application# which shall be accorded the filing date of the initial application. %Sec. 3@# ).A. Co. (83a& Section 111. Prohibition against iling of Parallel (pplications. - An applicant "ay not file two %0& applications for the sa"e sub7ect# one for utility "odel registration and the other for the grant of a patent whether si"ultaneously or consecuti!ely. %Sec. 3A# ).A. Co. (83a& C!APTER .III IN&#STRIA" &ESIN Section 112. Definition of Industrial Design. - An industrial design is any co"position of lines or colors or any three-di"ensional for"# whether or not associated-with lines or colors: Pro!ided# That such co"position or for" gi!es a special appearance to and can ser!e as pattern for an industrial product or handicraft. %Sec. 33# ).A. Co. (83a& Section 113. Substantive Conditions for Protection. - ((1.(. 2nly industrial designs that are new or original shall benefit fro" protection under this Act. ((1.0. Industrial designs dictated essentially by technical or functional considerations to obtain a technical result or those that are contrary to public order# health or "orals shall not be protected. %n& Section 11*. Contents of the (pplication. - (('.(. 4!ery application for registration of an industrial design shall contain: %a& A re<uest for registration of the industrial design* %b& Infor"ation identifying the applicant* %c& An indication of the kind of article of "anufacture or handicraft to which the design shall be applied* %d& A representation of the article of "anufacture or handicraft by way of drawings# photographs or other ade<uate graphic representation of the design as applied to the article of "anufacture or handicraft which clearly and fully discloses those features for which design protection is clai"ed* and %e& The na"e and address of the creator# or where the applicant is not the creator# a state"ent indicating the origin of the right to the industrial design registration. (('.0. The application "ay be acco"panied by a speci"en of the article e"bodying the industrial design and shall be sub7ect to the pay"ent of the prescribed fee.%n& Section 11+. Several Industrial Designs in !ne (pplication. - Two %0& or "ore industrial designs "ay be the sub7ect of the sa"e application: Pro!ided# That they relate to the sa"e sub-class of the International Classification or to the sa"e set or co"position of articles. %n& Section 116. +2amination. - ((8.(. The 2ffice 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 e"bodying the industrial design or a pictorial representation thereof. ((8.0. If the application does not "eet these re<uire"ents the filing date should be that date when all the ele"ents specified in Section (?3 are filed or the "istakes corrected. 2therwise if the re<uire"ents are not co"plied within the prescribed period# the application shall be considered withdrawn. ((8.1. After the application has been accorded a filing date and the re<uired fees paid on ti"e# the applicant shall co"ply with the re<uire"ents of Section ((' within the prescribed period# otherwise the application shall be considered withdrawn. ((8.'. The 2ffice shall e$a"ine whether the industrial design co"plies with re<uire"ents of Section ((0 and Subsections ((1.0 and ((1.1. %n& Section 117. Registration. - ((;.(. Fhere the 2ffice finds that the conditions referred to in Section ((1 are fulfilled# it shall order that registration be effected in the industrial design register and cause the issuance of an industrial design certificate of registration# otherwise# it shall refuse the application. ((;.0. The for" and contents of an industrial design certificate shall be established by the )egulations: Pro!ided# That the na"e and address of the creator shall be "entioned in e!ery case. ((;.1. )egistration shall be published in the for" and within the period fi$ed by the )egulations. ((;.'. The 2ffice shall record in the register any change in the identity of the proprietor of the industrial design or his representati!e# if proof thereof is furnished to it. A fee shall be paid# with the re<uest to record the change in the identity of the proprietor. If the fee is not paid# the re<uest shall be dee"ed not to ha!e been filed. In such case# the for"er proprietor and the for"er representati!e shall re"ain sub7ect to the rights and obligations as pro!ided in this Act. ((;.3. Anyone "ay inspect the )egister and the files of registered industrial designs including the files of cancellation proceedings. %n& Section 118. The Term of Industrial Design Registration. - ((@.( The registration of an industrial design shall be for a period of fi!e %3& years fro" the filing date of the application. ((@.0. The registration of an industrial design "ay be renewed for not "ore than two %0& consecuti!e periods of fi!e %3& years each# by paying the renewal fee. ((@.1. The renewal fee shall be paid within twel!e %(0& "onths preceding the e$piration of the period of registration. Bowe!er# a grace period of si$ %8& "onths shall be granted for pay"ent of the fees after such e$piration# upon pay"ent of a surcharge ((@.'. The )egulations shall fi$ the a"ount of renewal fee# the surcharge and other re<uire"ents regarding the recording of renewals of registration. Section 119. (pplication of !ther Sections and Chapters. - ((A.(. The following pro!isions relating to patents shall apply "utatis "utandis to an industrial design registration: Section 0( - Co!elty: Section 0' - Prior art: Pro!ided# That the disclosure is contained in printed docu"ents or in any tangible for"* Section 03 - Con-pre7udicial -isclosure* Section 0; - In!entions Created Pursuant to a Co""ission* Section 0@ - )ight to a Patent* Section 0A - :irst to :ile )ule* Section 1( - )ight of Priority: Pro!ided# That the application for industrial design shall be filed within si$ %8& "onths fro" the earliest filing date of the corresponding foreign application* Section 11 - Appoint"ent of Agent or )epresentati!e* Section 3( - )efusal of the Application* Sections 38 to 8? - Surrender# Correction of and Changes in Patent* CBAPT4) 6II - )e"edies of a Person with a )ight to Patent* CBAPT4) 6III - )ights of Patentees and Infringe"ent of Patents* and CBAPT4) 5I - Assign"ent and Trans"ission of )ights. ((A.0. If the essential ele"ents of an industrial design which is the sub7ect of an application ha!e been obtained fro" the creation of another person without his consent# protection under this Chapter cannot be in!oked against the in7ured party. %n& Section 12,. Cancellation of Design Registration. - (0?.(. At any ti"e during the ter" of the industrial design registration# any person upon pay"ent of the re<uired fee# "ay petition the -irector of .egal Affairs to cancel the industrial design on any of the following grounds: %a& If the sub7ect "atter of the industrial design is not registrable within the ter"s of Sections ((0 and ((1* %b& If the sub7ect "atter is not new* or %c& If the sub7ect "atter of the industrial design e$tends beyond the content of the application as originally filed. (0?.0. Fhere the grounds for cancellation relate to a part of the industrial design# cancellation "ay be effected to such e$tent only. The restriction "ay be effected in the for" of an alteration of the effected features of the design. %n& PART III T!E "A) $N TRA&E-AR/S, SER(ICE -AR/S AN& TRA&E NA-ES Section 121. Definitions. - As used in Part III# the following ter"s ha!e the following "eanings: (0(.(. "+ark" "eans any !isible sign capable of distinguishing the goods %trade"ark& or ser!ices %ser!ice "ark& of an enterprise and shall include a sta"ped or "arked container of goods* %Sec. 1@# ).A. Co. (88a& (0(.0. "Collecti!e "ark" "eans any !isible sign designated as such in the application for registration and capable of distinguishing the origin or any other co""on characteristic# including the <uality of goods or ser!ices of different enterprises which use the sign under the control of the registered owner of the collecti!e "ark* %Sec. '?# ).A. Co. (88a& (0(.1. "Trade na"e" "eans the na"e or designation identifying or distinguishing an enterprise* %Sec. 1@# ).A. Co. (88a& (0(.'. "9ureau" "eans the 9ureau of Trade"arks* (0(.3. "-irector" "eans the -irector of Trade"arks* (0(.8. ")egulations" "eans the )ules of Practice in Trade"arks and Ser!ice +arks for"ulated by the -irector of Trade"arks and appro!ed by the -irector ,eneral* and (0(.;. "4$a"iner" "eans the trade"ark e$a"iner. %Sec. 1@# ).A. Co. (88a& Section 122. Ho- *ar&s are (c.uired. - The rights in a "ark shall be ac<uired through registration "ade !alidly in accordance with the pro!isions of this law. %Sec. 0-A# ) A. Co. (88a& Section 123. Registrability. - (01.(. A "ark cannot be registered if it: %a& Consists of i""oral# decepti!e or scandalous "atter# or "atter which "ay disparage or falsely suggest a connection with persons# li!ing or dead# institutions# beliefs# or national sy"bols# or bring the" into conte"pt or disrepute* %b& Consists of the flag or coat of ar"s or other insignia of the Philippines or any of its political subdi!isions# or of any foreign nation# or any si"ulation thereof* %c& Consists of a na"e# portrait or signature identifying a particular li!ing indi!idual e$cept by his written consent# or the na"e# signature# or portrait of a deceased President of the Philippines# during the life of his widow# if any# e$cept by written consent of the widow* %d& Is identical with a registered "ark belonging to a different proprietor or a "ark with an earlier filing or priority date# in respect of: %i& The sa"e goods or ser!ices# or %ii& Closely related goods or ser!ices# or %iii& If it nearly rese"bles such a "ark as to be likely to decei!e or cause confusion* %e& Is identical with# or confusingly si"ilar to# or constitutes a translation of a "ark which is considered by the co"petent authority of the Philippines to be well-known internationally and in the Philippines# whether or not it is registered here# as being already the "ark of a person other than the applicant for registration# and used for identical or si"ilar goods or ser!ices: Pro!ided# That in deter"ining whether a "ark is well-known# account shall be taken of the knowledge of the rele!ant sector of the public# rather than of the public at large# including knowledge in the Philippines which has been obtained as a result of the pro"otion of the "ark* %f& Is identical with# or confusingly si"ilar to# or constitutes a translation of a "ark considered well-known in accordance with the preceding paragraph# which is registered in the Philippines with respect to goods or ser!ices which are not si"ilar to those with respect to which registration is applied for: Pro!ided# That use of the "ark in relation to those goods or ser!ices would indicate a connection between those goods or ser!ices# and the owner of the registered "ark: Pro!ided further# That the interests of the owner of the registered "ark are likely to be da"aged by such use* %g& Is likely to "islead the public# particularly as to the nature# <uality# characteristics or geographical origin of the goods or ser!ices* %h& Consists e$clusi!ely of signs that are generic for the goods or ser!ices that they seek to identify* %i& Consists e$clusi!ely of signs or of indications that ha!e beco"e custo"ary or usual to designate the goods or ser!ices in e!eryday language or in bona fide and established trade practice* %7& Consists e$clusi!ely of signs or of indications that "ay ser!e in trade to designate the kind# <uality# <uantity# intended purpose# !alue# geographical origin# ti"e or production of the goods or rendering of the ser!ices# or other characteristics of the goods or ser!ices* %k& Consists of shapes that "ay be necessitated by technical factors or by the nature of the goods the"sel!es or factors that affect their intrinsic !alue* %l& Consists of color alone# unless defined by a gi!en for"* or %"& Is contrary to public order or "orality. (01.0. As regards signs or de!ices "entioned in paragraphs %7&# %k&# and %l&# nothing shall pre!ent the registration of any such sign or de!ice which has beco"e distincti!e in relation to the goods for which registration is re<uested as a result of the use that ha!e been "ade of it in co""erce in the Philippines. The 2ffice "ay accept as pri"a facie e!idence that the "ark has beco"e distincti!e# as used in connection with the applicant=s goods or ser!ices in co""erce# proof of substantially e$clusi!e and continuous use thereof by the applicant in co""erce in the Philippines for fi!e %3& years before the date on which the clai" of distincti!eness is "ade. (01.1. The nature of the goods to which the "ark is applied will not constitute an obstacle to registration. %Sec. '# ).A. Co. (88a& Section 12*. Re.uirements of (pplication. - (0'.(. The application for the registration of the "ark shall be in :ilipino or in 4nglish and shall contain the following: %a& A re<uest for registration* %b& The na"e and address of the applicant* %c& The na"e of a State of which the applicant is a national or where he has do"icile* and the na"e of a State in which the applicant has a real and effecti!e industrial or co""ercial establish"ent# if any* %d& Fhere the applicant is a 7uridical entity# the law under which it is organied and e$isting* %e& The appoint"ent of an agent or representati!e# if the applicant is not do"iciled in the Philippines* %f& Fhere the applicant clai"s the priority of an earlier application# an indication of: i& The na"e of the State with whose national office the earlier application was filed or if filed with an office other than a national office# the na"e of that office# ii& The date on which the earlier application was filed# and iii& Fhere a!ailable# the application nu"ber of the earlier application* %g& Fhere the applicant clai"s color as a distincti!e feature of the "ark# a state"ent to that effect as well as the na"e or na"es of the color or colors clai"ed and an indication# in respect of each color# of the principal parts of the "ark which are in that color* %h& Fhere the "ark is a three-di"ensional "ark# a state"ent to that effect* %i& 2ne or "ore reproductions of the "ark# as prescribed in the )egulations* %7& A transliteration or translation of the "ark or of so"e parts of the "ark# as prescribed in the )egulations* %k& The na"es of the goods or ser!ices for which the registration is sought# grouped according to the classes of the Cice Classification# together with the nu"ber of the class of the said Classification to which each group of goods or ser!ices belongs* and %l& A signature by# or other self-identification of# the applicant or his representati!e. (0'.0. The applicant or the registrant shall file a declaration of actual use of the "ark with e!idence to that effect# as prescribed by the )egulations within three %1& years fro" the filing date of the application. 2therwise# the application shall be refused or the "ark shall be re"o!ed fro" the )egister by the -irector. (0'.1. 2ne %(& application "ay relate to se!eral goods andGor ser!ices# whether they belong to one %(& class or to se!eral classes of the Cice Classification. (0'.'. If during the e$a"ination of the application# the 2ffice finds factual basis to reasonably doubt the !eracity of any indication or ele"ent in the application# it "ay re<uire the applicant to sub"it sufficient e!idence to re"o!e the doubt. %Sec. 3# ).A. Co. (88a& Section 12+. Representation3 (ddress for Service. - If the applicant is not do"iciled or has no real and effecti!e co""ercial establish"ent in the Philippines# he shall designate by a written docu"ent filed in the 2ffice# the na"e and address of a Philippine resident who "ay be ser!ed notices or process in proceedings affecting the "ark. Such notices or ser!ices "ay be ser!ed upon the person so designated by lea!ing a copy thereof at the address specified in the last designation filed. If the person so designated cannot be found at the address gi!en in the last designation# such notice or process "ay be ser!ed upon the -irector. %Sec. 1# ).A. Co. (88a& Section 126. Disclaimers. - The 2ffice "ay allow or re<uire the applicant to disclai" an unregistrable co"ponent of an otherwise registrable "ark but such disclai"er shall not pre7udice or affect the applicant=s or owner=s rights then e$isting or thereafter arising in the disclai"ed "atter# nor such shall disclai"er pre7udice or affect the applicant=s or owner=s right on another application of later date if the disclai"ed "atter beca"e distincti!e of the applicant=s or owner=s goods# business or ser!ices. %Sec. (1# ).A. Co. (88a& Section 127. iling Date. - (0;.(. )e<uire"ents. - The filing date of an application shall be the date on which the 2ffice recei!ed the following indications and ele"ents in 4nglish or :ilipino: %a& An e$press or i"plicit indication that the registration of a "ark is sought* %b& The identity of the applicant* %c& Indications sufficient to contact the applicant or his representati!e# if any* %d& A reproduction of the "ark whose registration is sought* and %e& The list of the goods or ser!ices for which the registration is sought. (0;.0. Co filing date shall be accorded until the re<uired fee is paid. %n& Section 128. Single Registration for %oods and7or Services. - Fhere goods andGor ser!ices belonging to se!eral classes of the Cice Classification ha!e been included in one %(& application# such an application shall result in one registration. %n& Section 129. Division of (pplication. - Any application referring to se!eral goods or ser!ices# hereafter referred to as the "initial application#" "ay be di!ided by the applicant into two %0& or "ore applications# hereafter referred to as the "di!isional applications#" by distributing a"ong the latter the goods or ser!ices referred to in the initial application. The di!isional applications shall preser!e the filing date of the initial application or the benefit of the right of priority. %n& Section 13,. Signature and !ther *eans of Self0Identification. - (1?.(. Fhere a signature is re<uired# the 2ffice shall accept: %a& A hand-written signature* or %b& The use of other for"s of signature# such as a printed or sta"ped signature# or the use of a seal instead of a hand-written signature: Pro!ided# That where a seal is used# it should be acco"panied by an indication in letters of the na"e of the signatory. (1?.0. The 2ffice shall accept co""unications to it by telecopier# or by electronic "eans sub7ect to the conditions or re<uire"ents that will be prescribed by the )egulations. Fhen co""unications are "ade by telefacsi"ile# the reproduction of the signature# or the reproduction of the seal together with# where re<uired# the indication in letters of the na"e of the natural person whose seal is used# appears. The original co""unications "ust be recei!ed by the 2ffice within thirty %1?& days fro" date of receipt of the telefacsi"ile. (1?.1. Co attestation# notariation# authentication# legaliation or other certification of any signature or other "eans of self-identification referred to in the preceding paragraphs# will be re<uired# e$cept# where the signature concerns the surrender of a registration. %n& Section 131. Priority Right. - (1(.(. An application for registration of a "ark filed in the Philippines by a person referred to in Section 1# and who pre!iously duly filed an application for registration of the sa"e "ark in one of those countries# shall be considered as filed as of the day the application was first filed in the foreign country. (1(.0. Co registration of a "ark in the Philippines by a person described in this section shall be granted until such "ark has been registered in the country of origin of the applicant. (1(.1. Cothing in this section shall entitle the owner of a registration granted under this section to sue for acts co""itted prior to the date on which his "ark was registered in this country: Pro!ided# That# notwithstanding the foregoing# the owner of a well-known "ark as defined in Section (01.(%e& of this Act# that is not registered in the Philippines# "ay# against an identical or confusingly si"ilar "ark# oppose its registration# or petition the cancellation of its registration or sue for unfair co"petition# without pre7udice to a!ailing hi"self of other re"edies pro!ided for under the law. (1(.'. In like "anner and sub7ect to the sa"e conditions and re<uire"ents# the right pro!ided in this section "ay be based upon a subse<uent regularly filed application in the sa"e foreign country: Pro!ided# That any foreign application filed prior to such subse<uent application has been withdrawn# abandoned# or otherwise disposed of# without ha!ing been laid open to public inspection and without lea!ing any rights outstanding# and has not ser!ed# nor thereafter shall ser!e# as a basis for clai"ing a right of priority. %Sec. 1;# ).A. Co. (88a& Section 132. (pplication /umber and iling Date. - (10.(. The 2ffice shall e$a"ine whether the application satisfies the re<uire"ents for the grant of a filing date as pro!ided in Section (0; and )egulations relating thereto. If the application does not satisfy the filing re<uire"ents# the 2ffice shall notify the applicant who shall within a period fi$ed by the )egulations co"plete or correct the application as re<uired# otherwise# the application shall be considered withdrawn. (10.0 2nce an application "eets the filing re<uire"ents of Section (0;# it shall be nu"bered in the se<uential order# and the applicant shall be infor"ed of the application nu"ber and the filing date of the application will be dee"ed to ha!e been abandoned. %n& Section 133. +2amination and Publication. - (11.(. 2nce the application "eets the filing re<uire"ents of Section (0;# the 2ffice shall e$a"ine whether the application "eets the re<uire"ents of Section (0' and the "ark as defined in Section (0( is registrable under Section (01. (11.0. Fhere the 2ffice finds that the conditions referred to in Subsection (11.( are fulfilled# it shall upon pay"ent of the prescribed fee# forthwith cause the application# as filed# to be published in the prescribed "anner. (11.1. If after the e$a"ination# the applicant is not entitled to registration for any reason# the 2ffice shall ad!ise the applicant thereof and the reasons therefor. The applicant shall ha!e a period of four %'& "onths in which to reply or a"end his application# which shall then be re-e$a"ined. The )egulations shall deter"ine the procedure for the re-e$a"ination or re!i!al of an application as well as the appeal to the -irector of Trade"arks fro" any final action by the 4$a"iner. (11.'. An abandoned application "ay be re!i!ed as a pending application within three %1& "onths fro" the date of abandon"ent# upon good cause shown and the pay"ent of the re<uired fee. (11.3. The final decision of refusal of the -irector of Trade"arks shall be appealable to the -irector ,eneral in accordance with the procedure fi$ed by the )egulations. %Sec. ;# ).A. Co. (88a& Section 13*. !pposition. - Any person who belie!es that he would be da"aged by the registration of a "ark "ay# upon pay"ent of the re<uired fee and within thirty %1?& days after the publication referred to in Subsection (11.0# file with the 2ffice an opposition to the application. Such opposition shall be in writing and !erified 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 state"ent of the facts relied upon. Copies of certificates of registration of "arks registered in other countries or other supporting docu"ents "entioned in the opposition shall be filed therewith# together with the translation in 4nglish# if not in the 4nglish language. :or good cause shown and upon pay"ent of the re<uired surcharge# the ti"e for filing an opposition "ay be e$tended by the -irector of .egal Affairs# who shall notify the applicant of such e$tension. The )egulations shall fi$ the "a$i"u" period of ti"e within which to file the opposition. %Sec. @# ).A. Co. (83a& Section 13+. /otice and Hearing. - /pon the filing of an opposition# the 2ffice shall ser!e notice of the filing on the applicant# and of the date of the hearing thereof upon the applicant and the oppositor and all other persons ha!ing any right# title or interest in the "ark co!ered by the application# as appear of record in the 2ffice. %Sec. A# ).A. Co. (83& Section 136. Issuance and Publication of Certificate. - Fhen the period for filing the opposition has e$pired# or when the -irector of .egal Affairs shall ha!e denied the opposition# the 2ffice upon pay"ent of the re<uired fee# shall issue the certificate of registration. /pon issuance of a certificate of registration# notice thereof "aking reference to the publication of the application shall be published in the IP2 ,aette. %Sec. (?# ).A. Co. (83& Section 137. Registration of *ar& and Issuance of a Certificate to the !-ner or his (ssignee. - (1;.(. The 2ffice shall "aintain a )egister in which shall be registered "arks# nu"bered in the order of their registration# and all transactions in respect of each "ark# re<uired to be recorded by !irtue of this law. (1;.0. The registration of a "ark shall include a reproduction of the "ark and shall "ention: its nu"ber* the na"e and address of the registered owner and# if the registered owner=s address is outside the country# his address for ser!ice within the country* the dates of application and registration* if priority is clai"ed# an indication of this fact# and the nu"ber# date and country of the application# basis of the priority clai"s* the list of goods or ser!ices in respect of which registration has been granted# with the indication of the corresponding class or classes* and such other data as the )egulations "ay prescribe fro" ti"e to ti"e. (1;.1. A certificate of registration of a "ark "ay be issued to the assignee of the applicant: Pro!ided# That the assign"ent is recorded in the 2ffice. In case of a change of ownership# the 2ffice shall at the written re<uest signed by the owner# or his representati!e# or by the new owner# or his representati!e and upon a proper showing and the pay"ent of the prescribed fee# issue to such assignee a new certificate of registration of the said "ark in the na"e of such assignee# and for the une$pired part of the original period. (1;.'. The 2ffice shall record any change of address# or address for ser!ice# which shall be notified to it by the registered owner. (1;.3. In the absence of any pro!ision to the contrary in this Act# co""unications to be "ade to the registered owner by !irtue of this Act shall be sent to hi" at his last recorded address and# at the sa"e# at his last recorded address for ser!ice. %Sec. (A# ).A. Co. (88a& Section 138. Certificates of Registration. - A certificate of registration of a "ark shall be pri"a facie e!idence of the !alidity of the registration# the registrant=s ownership of the "ark# and of the registrant=s e$clusi!e right to use the sa"e in connection with the goods or ser!ices and those that are related thereto specified in the certificate. %Sec. 0?# ).A. Co. (83& Section 139. Publication of Registered *ar&s3 Inspection of Register. - (1A.(. The 2ffice shall publish# in the for" and within the period fi$ed by the )egulations# the "arks registered# in the order of their registration# reproducing all the particulars referred to in Subsection (1;.0. (1A.0. +arks registered at the 2ffice "ay be inspected free of charge and any person "ay obtain copies thereof at his own e$pense. This pro!ision shall also be applicable to transactions recorded in respect of any registered "ark. %n& Section 1*,. Cancellation upon (pplication by Registrant3 (mendment or Disclaimer of Registration. - /pon application of the registrant# the 2ffice "ay per"it any registration to be surrendered for cancellation# and upon cancellation the appropriate entry shall be "ade in the records of the 2ffice. /pon application of the registrant and pay"ent of the prescribed fee# the 2ffice for good cause "ay per"it any registration to be a"ended or to be disclai"ed in part: Pro!ided# That the a"end"ent or disclai"er does not alter "aterially the character of the "ark. Appropriate entry shall be "ade in the records of the 2ffice upon the certificate of registration or# if said certificate is lost or destroyed# upon a certified copy thereof %Sec. ('# ).A. Co. (88& Section 1*1. Sealed and Certified Copies as +vidence. - Copies of any records# books# papers# or drawings belonging to the 2ffice relating to "arks# and copies of registrations# when authenticated by the seal of the 2ffice and certified by the -irector of the Ad"inistrati!e# :inancial and Bu"an )esource -e!elop"ent Ser!ice 9ureau or in his na"e by an e"ployee of the 2ffice duly authoried by said -irector# shall be e!idence in all cases wherein the originals would be e!idence* and any person who applies and pays the prescribed fee shall secure such copies. %n& Section 1*2. Correction of *ista&es *ade by the !ffice. - Fhene!er a "aterial "istake in a registration incurred through the fault of the 2ffice is clearly disclosed by the records of the 2ffice# a certificate stating the fact and nature of such "istake 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 ha!e the sa"e effect as the original certificate* or in the discretion of the -irector of the Ad"inistrati!e# :inancial and Bu"an )esource -e!elop"ent Ser!ice 9ureau a new certificate of registration "ay be issued without charge. All certificates of correction heretofore issued in accordance with the )egulations and the registration to which they are attached shall ha!e the sa"e force and effect as if such certificates and their issuance had been authoried by this Act. %n& Section 1*3. Correction of *ista&es *ade by (pplicant. - Fhene!er a "istake is "ade in a registration and such "istake occurred in good faith through the fault of the applicant# the 2ffice "ay issue a certificate upon the pay"ent of the prescribed fee: Pro!ided# That the correction does not in!ol!e any change in the registration that re<uires republication of the "ark. %n& Section 1**. Classification of %oods and Services. - (''.(. 4ach registration# and any publication of the 2ffice which concerns an application or registration effected by the 2ffice shall indicate the goods or ser!ices by their na"es# grouped according to the classes of the Cice Classification# and each group shall be preceded by the nu"ber of the class of that Classification to which that group of goods or ser!ices belongs# presented in the order of the classes of the said Classification. (''.0. ,oods or ser!ices "ay not be considered as being si"ilar or dissi"ilar to each other on the ground that# in any registration or publication by the 2ffice# they appear in different classes of the Cice Classification. %Sec. 8# ).A. Co. (88a& Section 1*+. Duration. - A certificate of registration shall re"ain in force for ten %(?& years: Pro!ided# That the registrant shall file a declaration of actual use and e!idence to that effect# or shall show !alid reasons based on the e$istence of obstacles to such use# as prescribed by the )egulations# within one %(& year fro" the fifth anni!ersary of the date of the registration of the "ark. 2therwise# the "ark shall be re"o!ed fro" the )egister by the 2ffice. %Sec. (0# ).A. Co. (88a& Section 1*6. Rene-al. - ('8.(. A certificate of registration "ay be renewed for periods of ten %(?& years at its e$piration upon pay"ent of the prescribed fee and upon filing of a re<uest. The re<uest shall contain the following indications: %a& An indication that renewal is sought* %b& The na"e and address of the registrant or his successor-in-interest# hereafter referred to as the "right holder"* %c& The registration nu"ber of the registration concerned* %d& The filing date of the application which resulted in the registration concerned to be renewed* %e& Fhere the right holder has a representati!e# the na"e and address of that representati!e* %f& The na"es of the recorded goods or ser!ices for which the renewal is re<uested or the na"es of the recorded goods or ser!ices for which the renewal is not re<uested# grouped according to the classes of the Cice Classification to which that group of goods or ser!ices belongs and presented in the order of the classes of the said Classification* and %g& A signature by the right holder or his representati!e. ('8.0. Such re<uest shall be in :ilipino or 4nglish and "ay be "ade at any ti"e within si$ %8& "onths before the e$piration of the period for which the registration was issued or renewed# or it "ay be "ade within si$ %8& "onths after such e$piration on pay"ent of the additional fee herein prescribed. ('8.1. If the 2ffice refuses to renew the registration# it shall notify the registrant of his refusal and the reasons therefor. ('8.'. An applicant for renewal not do"iciled in the Philippines shall be sub7ect to and co"ply with the re<uire"ents of this Act. %Sec. (3# ).A. Co. (88a& Section 1*7. Rights Conferred. - (';.(. The owner of a registered "ark shall ha!e the e$clusi!e right to pre!ent all third parties not ha!ing the owner=s consent fro" using in the course of trade identical or si"ilar signs or containers for goods or ser!ices which are identical or si"ilar to those in respect of which the trade"ark 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 ser!ices# a likelihood of confusion shall be presu"ed. (';.0. The e$clusi!e right of the owner of a well-known "ark defined in Subsection (01.(%e& which is registered in the Philippines# shall e$tend to goods and ser!ices which are not si"ilar to those in respect of which the "ark is registered: Pro!ided# That use of that "ark in relation to those goods or ser!ices would indicate a connection between those goods or ser!ices and the owner of the registered "ark: Pro!ided further# That the interests of the owner of the registered "ark are likely to be da"aged by such use. %n& Section 1*8. ,se of Indications by Third Parties for Purposes !ther than those for -hich the *ar& is ,sed. - )egistration of the "ark shall not confer on the registered owner the right to preclude third parties fro" using bona fide their na"es# addresses# pseudony"s# a geographical na"e# or e$act indications concerning the kind# <uality# <uantity# destination# !alue# place of origin# or ti"e of production or of supply# of their goods or ser!ices: Pro!ided# That such use is confined to the purposes of "ere identification or infor"ation and cannot "islead the public as to the source of the goods or ser!ices. %n& Section 1*9. (ssignment and Transfer of (pplication and Registration. - ('A.(. An application for registration of a "ark# or its registration# "ay be assigned or transferred with or without the transfer of the business using the "ark. %n& ('A.0. Such assign"ent or transfer shall# howe!er# be null and !oid if it is liable to "islead the public# particularly as regards the nature# source# "anufacturing process# characteristics# or suitability for their purpose# of the goods or ser!ices to which the "ark is applied. ('A.1. The assign"ent of the application for registration of a "ark# or of its registration# shall be in writing and re<uire the signatures of the contracting parties. Transfers by "ergers or other for"s of succession "ay be "ade by any docu"ent supporting such transfer. ('A.'. Assign"ents and transfers of registrations of "arks shall be recorded at the 2ffice on pay"ent of the prescribed fee* assign"ent and transfers of applications for registration shall# on pay"ent of the sa"e fee# be pro!isionally recorded# and the "ark# when registered# shall be in the na"e of the assignee or transferee. ('A.3. Assign"ents and transfers shall ha!e no effect against third parties until they are recorded at the 2ffice. %Sec. 1(# ).A. Co. (88a& Section 1+,. 'icense Contracts. - (3?.(. Any license contract concerning the registration of a "ark# or an application therefor# shall pro!ide for effecti!e control by the licensor of the <uality of the goods or ser!ices of the licensee in connection with which the "ark is used. If the license contract does not pro!ide for such <uality control# or if such <uality control is not effecti!ely carried out# the license contract shall not be !alid. (3?.0. A license contract shall be sub"itted to the 2ffice which shall keep its contents confidential but shall record it and publish a reference thereto. A license contract shall ha!e no effect against third parties until such recording is effected. The )egulations shall fi$ the procedure for the recording of the license contract. %n& Section 1+1. Cancellation. - (3(.(. A petition to cancel a registration of a "ark under this Act "ay be filed with the 9ureau of .egal Affairs by any person who belie!es that he is or will be da"aged by the registration of a "ark under this Act as follows: %a& Fithin fi!e %3& years fro" the date of the registration of the "ark under this Act. %b& At any ti"e# if the registered "ark beco"es the generic na"e for the goods or ser!ices# or a portion thereof# for which it is registered# or has been abandoned# or its registration was obtained fraudulently or contrary to the pro!isions of this Act# or if the registered "ark is being used by# or with the per"ission of# the registrant so as to "isrepresent the source of the goods or ser!ices on or in connection with which the "ark is used. If the registered "ark beco"es the generic na"e for less than all of the goods or ser!ices for which it is registered# a petition to cancel the registration for only those goods or ser!ices "ay be filed. A registered "ark shall not be dee"ed to be the generic na"e of goods or ser!ices solely because such "ark is also used as a na"e of or to identify a uni<ue product or ser!ice. The pri"ary significance of the registered "ark to the rele!ant public rather than purchaser "oti!ation shall be the test for deter"ining whether the registered "ark has beco"e the generic na"e of goods or ser!ices on or in connection with which it has been used. %n& %c& At any ti"e# if the registered owner of the "ark without legiti"ate reason fails to use the "ark within the Philippines# or to cause it to be used in the Philippines by !irtue of a license during an uninterrupted period of three %1& years or longer. (3(.0. Cotwithstanding the foregoing pro!isions# the court or the ad"inistrati!e agency !ested with 7urisdiction to hear and ad7udicate any action to enforce the rights to a registered "ark shall likewise e$ercise 7urisdiction to deter"ine whether the registration of said "ark "ay be cancelled in accordance with this Act. The filing of a suit to enforce the registered "ark with the proper court or agency shall e$clude any other court or agency fro" assu"ing 7urisdiction o!er a subse<uently filed petition to cancel the sa"e "ark. 2n the other hand# the earlier filing of petition to cancel the "ark with the 9ureau of .egal Affairs shall not constitute a pre7udicial <uestion that "ust be resol!ed before an action to enforce the rights to sa"e registered "ark "ay be decided. %Sec. (;# ).A. Co. (88a& Section 1+2. /on0use of a *ar& 8hen +2cused. - (30.(. Con-use of a "ark "ay be e$cused if caused by circu"stances arising independently of the will of the trade"ark owner. .ack of funds shall not e$cuse non-use of a "ark. (30.0. The use of the "ark in a for" different fro" the for" in which it is registered# which does not alter its distincti!e character# shall not be ground for cancellation or re"o!al of the "ark and shall not di"inish the protection granted to the "ark. (30.1. The use of a "ark in connection with one or "ore of the goods or ser!ices belonging to the class in respect of which the "ark is registered shall pre!ent its cancellation or re"o!al in respect of all other goods or ser!ices of the sa"e class. (30.'. The use of a "ark by a co"pany related with the registrant or applicant shall inure to the latter=s benefit# and such use shall not affect the !alidity of such "ark or of its registration: Pro!ided# That such "ark is not used in such "anner as to decei!e the public. If use of a "ark by a person is controlled by the registrant or applicant with respect to the nature and <uality of the goods or ser!ices# such use shall inure to the benefit of the registrant or applicant. %n& Section 1+3. Re.uirements of Petition3 /otice and Hearing. - Insofar as applicable# the petition for cancellation shall be in the sa"e for" as that pro!ided in Section (1' hereof# and notice and hearing shall be as pro!ided in Section (13 hereof. Section 1+*. Cancellation of Registration. - If the 9ureau of .egal Affairs finds that a case for cancellation has been "ade out# it shall order the cancellation of the registration. Fhen the order or 7udg"ent beco"es final# any right conferred by such registration upon the registrant or any person in interest of record shall ter"inate. Cotice of cancellation shall be published in the IP2 ,aette. %Sec. (A# ).A. Co. (88a& Section 1++. Remedies3 Infringement. - Any person who shall# without the consent of the owner of the registered "ark: (33.(. /se in co""erce any reproduction# counterfeit# copy# or colorable i"itation of a registered "ark or the sa"e container or a do"inant feature thereof in connection with the sale# offering for sale# distribution# ad!ertising of any goods or ser!ices including other preparatory steps necessary to carry out the sale of any goods or ser!ices on or in connection with which such use is likely to cause confusion# or to cause "istake# or to decei!e* or (33.0. )eproduce# counterfeit# copy or colorably i"itate a registered "ark or a do"inant feature thereof and apply such reproduction# counterfeit# copy or colorable i"itation to labels# signs# prints# packages# wrappers# receptacles or ad!ertise"ents intended to be used in co""erce upon or in connection with the sale# offering for sale# distribution# or ad!ertising of goods or ser!ices on or in connection with which such use is likely to cause confusion# or to cause "istake# or to decei!e# shall be liable in a ci!il action for infringe"ent by the registrant for the re"edies hereinafter set forth: Pro!ided# That the infringe"ent takes place at the "o"ent any of the acts stated in Subsection (33.( or this subsection are co""itted regardless of whether there is actual sale of goods or ser!ices using the infringing "aterial. %Sec. 00# ).A. Co (88a& Section 1+6. (ctions) and Damages and In1unction for Infringement. - (38.(. The owner of a registered "ark "ay reco!er da"ages fro" any person who infringes his rights# and the "easure of the da"ages suffered shall be either the reasonable profit which the co"plaining party would ha!e "ade# had the defendant not infringed his rights# or the profit which the defendant actually "ade out of the infringe"ent# or in the e!ent such "easure of da"ages cannot be readily ascertained with reasonable certainty# then the court "ay award as da"ages a reasonable percentage based upon the a"ount of gross sales of the defendant or the !alue of the ser!ices in connection with which the "ark or trade na"e was used in the infringe"ent of the rights of the co"plaining party. %Sec. 01# first par.# ).A. Co. (88a& (38.0. 2n application of the co"plainant# the court "ay i"pound during the pendency of the action# sales in!oices and other docu"ents e!idencing sales. %n& (38.1. In cases where actual intent to "islead the public or to defraud the co"plainant is shown# in the discretion of the court# the da"ages "ay be doubled. %Sec. 01# first par.# ).A. Co. (88& (38.'. The co"plainant# upon proper showing# "ay also be granted in7unction. %Sec. 01# second par.# ).A. Co. (88a& Section 1+7. Po-er of Court to !rder Infringing *aterial Destroyed. - (3;.( In any action arising under this Act# in which a !iolation of any right of the owner of the registered "ark is established# the court "ay order that goods found to be infringing be# without co"pensation of any sort# disposed of outside the channels of co""erce in such a "anner as to a!oid any har" caused to the right holder# or destroyed* and all labels# signs# prints# packages# wrappers# receptacles and ad!ertise"ents in the possession of the defendant# bearing the registered "ark or trade na"e or any reproduction# counterfeit# copy or colorable i"itation thereof# all plates# "olds# "atrices and other "eans of "aking the sa"e# shall be deli!ered up and destroyed. (3;.0. In regard to counterfeit goods# the si"ple re"o!al of the trade"ark affi$ed shall not be sufficient other than in e$ceptional cases which shall be deter"ined by the )egulations# to per"it the release of the goods into the channels of co""erce. %Sec. 0'# ).A. Co. (88a& Section 1+8. Damages3 Re.uirement of /otice. - In any suit for infringe"ent# the owner of the registered "ark shall not be entitled to reco!er profits or da"ages unless the acts ha!e been co""itted with knowledge that such i"itation is likely to cause confusion# or to cause "istake# or to decei!e. Such knowledge is presu"ed if the registrant gi!es notice that his "ark is registered by displaying with the "ark the words =")egistered +ark" or the letter ) within a circle or if the defendant had otherwise actual notice of the registration. %Sec. 0(# ).A. Co. (88a& Section 1+9. 'imitations to (ctions for Infringement. - Cotwithstanding any other pro!ision of this Act# the re"edies gi!en to the owner of a right infringed under this Act shall be li"ited as follows: (3A.(. Cotwithstanding the pro!isions of Section (33 hereof# a registered "ark shall ha!e no effect against any person who# in good faith# before the filing date or the priority date# was using the "ark for the purposes of his business or enterprise: Pro!ided# That his right "ay only be transferred or assigned together with his enterprise or business or with that part of his enterprise or business in which the "ark is used. (3A.0. Fhere an infringer who is engaged solely in the business of printing the "ark or other infringing "aterials for others is an innocent infringer# the owner of the right infringed shall be entitled as against such infringer only to an in7unction against future printing. (3A.1. Fhere the infringe"ent co"plained of is contained in or is part of paid ad!ertise"ent in a newspaper# "againe# or other si"ilar periodical or in an electronic co""unication# the re"edies of the owner of the right infringed as against the publisher or distributor of such newspaper# "againe# or other si"ilar periodical or electronic co""unication shall be li"ited to an in7unction against the presentation of such ad!ertising "atter in future issues of such newspapers# "againes# or other si"ilar periodicals or in future trans"issions of such electronic co""unications. The li"itations of this subparagraph shall apply only to innocent infringers: Pro!ided# That such in7uncti!e relief shall not be a!ailable to the owner of the right infringed with respect to an issue of a newspaper# "againe# or other si"ilar periodical or an electronic co""unication containing infringing "atter where restraining the disse"ination of such infringing "atter in any particular issue of such periodical or in an electronic co""unication would delay the deli!ery of such issue or trans"ission of such electronic co""unication is custo"arily conducted in accordance with the sound business practice# and not due to any "ethod or de!ice adopted to e!ade this section or to pre!ent or delay the issuance of an in7unction or restraining order with respect to such infringing "atter. %n& Section 16,. Right of oreign Corporation to Sue in Trademar& or Service *ar& +nforcement (ction. - Any foreign national or 7uridical person who "eets the re<uire"ents of Section 1 of this Act and does not engage in business in the Philippines "ay bring a ci!il or ad"inistrati!e action hereunder for opposition# cancellation# infringe"ent# unfair co"petition# or false designation of origin and false description# whether or not it is licensed to do business in the Philippines under e$isting laws. %Sec. 0(-A# ).A. Co. (88a& Section 161. (uthority to Determine Right to Registration. - In any action in!ol!ing a registered "ark# the court "ay deter"ine the right to registration# order the cancellation of a registration# in whole or in part# and otherwise rectify the register with respect to the registration of any party to the action in the e$ercise of this. Hudg"ent and orders shall be certified by the court to the -irector# who shall "ake appropriate entry upon the records of the 9ureau# and shall be controlled thereby. %Sec. 03# ).A. Co. (88a& Section 162. (ction for alse or raudulent Declaration. - Any person who shall procure registration in the 2ffice of a "ark by a false or fraudulent declaration or representation# whether oral or in writing# or by any false "eans# shall be liable in a ci!il action by any person in7ured thereby for any da"ages sustained in conse<uence thereof %Sec. 08# ).A. Co. (88& Section 163. 5urisdiction of Court. - All actions under Sections (3?# (33# (8'# and (88 to (8A shall be brought before the proper courts with appropriate 7urisdiction under e$isting laws. %Sec. 0;# ).A. Co. (88& Section 16*. /otice of iling Suit %iven to the Director. - It shall be the duty of the clerks of such courts within one %(& "onth after the filing of any action# suit# or proceeding in!ol!ing a "ark registered under the pro!isions of this Act# to notify the -irector in writing setting forth: the na"es and addresses of the litigants and designating the nu"ber of the registration or registrations and within one %(& "onth after the 7udg"ent is entered or an appeal is taken# the clerk of court shall gi!e notice thereof to the 2ffice# and the latter shall endorse the sa"e upon the filewrapper of the said registration or registrations and incorporate the sa"e as a part of the contents of said filewrapper. %n& Section 16+. Trade /ames or Business /ames. - (83.(. A na"e or designation "ay not be used as a trade na"e if by its nature or the use to which such na"e or designation "ay be put# it is contrary to public order or "orals and if# in particular# it is liable to decei!e trade circles or the public as to the nature of the enterprise identified by that na"e. (83.0.%a& Cotwithstanding any laws or regulations pro!iding for any obligation to register trade na"es# such na"es shall be protected# e!en prior to or without registration# against any unlawful act co""itted by third parties. %b& In particular# any subse<uent use of the trade na"e by a third party# whether as a trade na"e or a "ark or collecti!e "ark# or any such use of a si"ilar trade na"e or "ark# likely to "islead the public# shall be dee"ed unlawful. (83.1. The re"edies pro!ided for in Sections (31 to (38 and Sections (88 and (8; shall apply "utatis "utandis. (83.'. Any change in the ownership of a trade na"e shall be "ade with the transfer of the enterprise or part thereof identified by that na"e. The pro!isions of Subsections ('A.0 to ('A.' shall apply "utatis "utandis. Section 166. %oods Bearing Infringing *ar&s or Trade /ames. - Co article of i"ported "erchandise which shall copy or si"ulate the na"e of any do"estic product# or "anufacturer# or dealer# or which shall copy or si"ulate a "ark registered in accordance with the pro!isions of this Act# or shall bear a "ark or trade na"e calculated to induce the public to belie!e that the article is "anufactured in the Philippines# or that it is "anufactured in any foreign country or locality other than the country or locality where it is in fact "anufactured# shall be ad"itted to entry at any custo"house of the Philippines. In order to aid the officers of the custo"s ser!ice in enforcing this prohibition# any person who is entitled to the benefits of this Act# "ay re<uire that his na"e and residence# and the na"e of the locality in which his goods are "anufactured# a copy of the certificate of registration of his "ark or trade na"e# to be recorded in books which shall be kept for this purpose in the 9ureau of Custo"s# under such regulations as the Collector of Custo"s with the appro!al of the Secretary of :inance shall prescribe# and "ay furnish to the said 9ureau facsi"iles of his na"e# the na"e of the locality in which his goods are "anufactured# or his registered "ark or trade na"e# and thereupon the Collector of Custo"s shall cause one %(& or "ore copies of the sa"e to be trans"itted to each collector or to other proper officer of the 9ureau of Custo"s. %Sec. 13# ).A. Co. (88& Section 167. Collective *ar&s. - (8;.(. Sub7ect to Subsections (8;.0 and (8;.1# Sections (00 to (8' and (88 shall apply to collecti!e "arks# e$cept that references therein to ""ark" shall be read as "collecti!e "ark". (8;.0.%a& An application for registration of a collecti!e "ark shall designate the "ark as a collecti!e "ark and shall be acco"panied by a copy of the agree"ent# if any# go!erning the use of the collecti!e "ark. %b& The registered owner of a collecti!e "ark shall notify the -irector of any changes "ade in respect of the agree"ent referred to in paragraph %a&. (8;.1. In addition to the grounds pro!ided in Section ('A# the Court shall cancel the registration of a collecti!e "ark if the person re<uesting the cancellation pro!es that only the registered owner uses the "ark# or that he uses or per"its its use in contra!ention of the agree"ents referred to in Subsection (88.0 or that he uses or per"its its use in a "anner liable to decei!e trade circles or the public as to the origin or any other co""on characteristics of the goods or ser!ices concerned. (8;.'. The registration of a collecti!e "ark# or an application therefor shall not be the sub7ect of a license contract. %Sec. '?# ).A. Co. (88a& Section 168. ,nfair Competition) Rights) Regulation and Remedies. - (8@.(. A person who has identified in the "ind of the public the goods he "anufactures or deals in# his business or ser!ices fro" those of others# whether or not a registered "ark is e"ployed# has a property right in the goodwill of the said goods# business or ser!ices so identified# which will be protected in the sa"e "anner as other property rights. (8@.0. Any person who shall e"ploy deception or any other "eans contrary to good faith by which he shall pass off the goods "anufactured by hi" or in which he deals# or his business# or ser!ices for those of the one ha!ing established such goodwill# or who shall co""it any acts calculated to produce said result# shall be guilty of unfair co"petition# and shall be sub7ect to an action therefor. (8@.1. In particular# and without in any way li"iting the scope of protection against unfair co"petition# the following shall be dee"ed guilty of unfair co"petition: %a& Any person# who is selling his goods and gi!es the" the general appearance of goods of another "anufacturer or dealer# either as to the goods the"sel!es or in the wrapping of the packages in which they are contained# or the de!ices or words thereon# or in any other feature of their appearance# which would be likely to influence purchasers to belie!e that the goods offered are those of a "anufacturer or dealer# other than the actual "anufacturer or dealer# or who otherwise clothes the goods with such appearance as shall decei!e the public and defraud another of his legiti"ate trade# or any subse<uent !endor of such goods or any agent of any !endor engaged in selling such goods with a like purpose* %b& Any person who by any artifice# or de!ice# or who e"ploys any other "eans calculated to induce the false belief that such person is offering the ser!ices of another who has identified such ser!ices in the "ind of the public* or %c& Any person who shall "ake any false state"ent in the course of trade or who shall co""it any other act contrary to good faith of a nature calculated to discredit the goods# business or ser!ices of another. (8@.'. The re"edies pro!ided by Sections (38# (3; and (8( shall apply "utatis "utandis. %Sec. 0A# ).A. Co. (88a& Section 169. alse Designations of !rigin3 alse Description or Representation. - (8A.(. Any person who# on or in connection with any goods or ser!ices# or any container for goods# uses in co""erce any word# ter"# na"e# sy"bol# or de!ice# or any co"bination thereof# or any false designation of origin# false or "isleading description of fact# or false or "isleading representation of fact# which: %a& Is likely to cause confusion# or to cause "istake# or to decei!e as to the affiliation# connection# or association of such person with another person# or as to the origin# sponsorship# or appro!al of his or her goods# ser!ices# or co""ercial acti!ities by another person* or %b& In co""ercial ad!ertising or pro"otion# "isrepresents the nature# characteristics# <ualities# or geographic origin of his or her or another person=s goods# ser!ices# or co""ercial acti!ities# shall be liable to a ci!il action for da"ages and in7unction pro!ided in Sections (38 and (3; of this Act by any person who belie!es that he or she is or is likely to be da"aged by such act. (8A.0. Any goods "arked or labelled in contra!ention of the pro!isions of this Section shall not be i"ported into the Philippines or ad"itted entry at any custo"house of the Philippines. The owner# i"porter# or consignee of goods refused entry at any custo"house under this section "ay ha!e any recourse under the custo"s re!enue laws or "ay ha!e the re"edy gi!en by this Act in cases in!ol!ing goods refused entry or seied. %Sec. 1?# ).A. Co. (88a& Section 17,. Penalties. - Independent of the ci!il and ad"inistrati!e sanctions i"posed by law# a cri"inal penalty of i"prison"ent fro" two %0& years to fi!e %3& years and a fine ranging fro" :ifty thousand pesos %P3?#???& to Two hundred thousand pesos%P0??#???&# shall be i"posed on any person who is found guilty of co""itting any of the acts "entioned in Section (33# Section (8@ and Subsection (8A.(. %Arts. (@@ and (@A# )e!ised Penal Code& PART I( T!E "A) $N C$P%RI!T C!APTER I PRE"I-INAR% PR$(ISI$NS Section 171. Definitions. - :or the purpose of this Act# the following ter"s ha!e the following "eaning: (;(.(. "Author" is the natural person who has created the work* (;(.0. A "collecti!e work" is a work which has been created by two %0& or "ore natural persons at the initiati!e and under the direction of another with the understanding that it will be disclosed by the latter under his own na"e and that contributing natural persons will not be identified* (;(.1. "Co""unication to the public" or "co""unicate to the public" "eans the "aking of a work a!ailable to the public by wire or wireless "eans in such a way that "e"bers of the public "ay access these works fro" a place and ti"e indi!idually chosen by the"* (;(.'. A "co"puter" is an electronic or si"ilar de!ice ha!ing infor"ation-processing capabilities# and a "co"puter progra"" is a set of instructions e$pressed in words# codes# sche"es or in any other for"# which is capable when incorporated in a "ediu" that the co"puter can read# of causing the co"puter to perfor" or achie!e a particular task or result* (;(.3. "Public lending" is the transfer of possession of the original or a copy of a work or sound recording for a li"ited period# for non-profit purposes# by an institution the ser!ices of which are a!ailable to the public# such as public library or archi!e* (;(.8. "Public perfor"ance"# in the case of a work other than an audio!isual work# is the recitation# playing# dancing# acting or otherwise perfor"ing the work# either directly or by "eans of any de!ice or process* in the case of an audio!isual work# the showing of its i"ages in se<uence and the "aking of the sounds acco"panying it audible* and# in the case of a sound recording# "aking the recorded sounds audible at a place or at places where persons outside the nor"al circle of a fa"ily and that fa"ily=s closest social ac<uaintances are or can be present# irrespecti!e of whether they are or can be present at the sa"e place and at the sa"e ti"e# or at different places andGor at different ti"es# and where the perfor"ance can be percei!ed without the need for co""unication within the "eaning of Subsection (;(.1* (;(.;. "Published works" "eans works# which# with the consent of the authors# are "ade a!ailable to the public by wire or wireless "eans in such a way that "e"bers of the public "ay access these works fro" a place and ti"e indi!idually chosen by the": Pro!ided# That a!ailability of such copies has been such# as to satisfy the reasonable re<uire"ents of the public# ha!ing regard to the nature of the work* (;(.@. ")ental" is the transfer of the possession of the original or a copy of a work or a sound recording for a li"ited period of ti"e# for profit-"aking purposes* (;(.A. ")eproduction" is the "aking of one %(& or "ore copies of a work or a sound recording in any "anner or for" %Sec. '( %4&# P.-. Co. 'A a&* (;(.(?. A "work of applied art" is an artistic creation with utilitarian functions or incorporated in a useful article# whether "ade by hand or produced on an industrial scale* (;(.((. A "work of the ,o!ern"ent of the Philippines" is a work created by an officer or e"ployee of the Philippine ,o!ern"ent or any of its subdi!isions and instru"entalities# including go!ern"ent- owned or controlled corporations as a part of his regularly prescribed official duties. C!APTER II $RIINA" )$R/S Section 172. 'iterary and (rtistic 8or&s. - (;0.(. .iterary and artistic works# hereinafter referred to as "works"# are original intellectual creations in the literary and artistic do"ain protected fro" the "o"ent of their creation and shall include in particular: %a& 9ooks# pa"phlets# articles and other writings* %b& Periodicals and newspapers* %c& .ectures# ser"ons# addresses# dissertations prepared for oral deli!ery# whether or not reduced in writing or other "aterial for"* %d& .etters* %e& -ra"atic or dra"atico-"usical co"positions* choreographic works or entertain"ent in du"b shows* %f& +usical co"positions# with or without words* %g& Forks of drawing# painting# architecture# sculpture# engra!ing# lithography or other works of art* "odels or designs for works of art* %h& 2riginal orna"ental designs or "odels for articles of "anufacture# whether or not registrable as an industrial design# and other works of applied art* %i& Illustrations# "aps# plans# sketches# charts and three-di"ensional works relati!e to geography# topography# architecture or science* %7& -rawings or plastic works of a scientific or technical character* %k& Photographic works including works produced by a process analogous to photography* lantern slides* %l& Audio!isual works and cine"atographic works and works produced by a process analogous to cine"atography or any process for "aking audio-!isual recordings* %"& Pictorial illustrations and ad!ertise"ents* %n& Co"puter progra"s* and %o& 2ther literary# scholarly# scientific and artistic works. (;0.0. Forks are protected by the sole fact of their creation# irrespecti!e of their "ode or for" of e$pression# as well as of their content# <uality and purpose. %Sec. 0# P.-. Co. 'Aa& C!APTER III &ERI(ATI(E )$R/S Section 173. Derivative 8or&s. - (;1.(. The following deri!ati!e works shall also be protected by copyright: %a& -ra"atiations# translations# adaptations# abridg"ents# arrange"ents# and other alterations of literary or artistic works* and %b& Collections of literary# scholarly or artistic works# and co"pilations of data and other "aterials which are original by reason of the selection or coordination or arrange"ent of their contents. %Sec. 0# DPE and D>E# P.-. Co. 'A& (;1.0. The works referred to in paragraphs %a& and %b& of Subsection (;1.( shall be protected as new works: Pro!ided howe!er# That such new work shall not affect the force of any subsisting copyright upon the original works e"ployed or any part thereof# or be construed to i"ply any right to such use of the original works# or to secure or e$tend copyright in such original works. %Sec. @# P.-. 'A* Art. (?# T)IPS& Section 17*. Published +dition of 8or&. - In addition to the right to publish granted by the author# his heirs# or assigns# the publisher shall ha!e a copyright consisting "erely of the right of reproduction of the typographical arrange"ent of the published edition of the work. %n& C!APTER I( )$R/S N$T PR$TECTE& Section 17+. ,nprotected Sub1ect *atter. - Cotwithstanding the pro!isions of Sections (;0 and (;1# no protection shall e$tend# under this law# to any idea# procedure# syste"# "ethod or operation# concept# principle# disco!ery or "ere data as such# e!en if they are e$pressed# e$plained# illustrated or e"bodied in a work* news of the day and other "iscellaneous facts ha!ing the character of "ere ite"s of press infor"ation* or any official te$t of a legislati!e# ad"inistrati!e or legal nature# as well as any official translation thereof %n& Section 176. 8or&s of the %overnment. - (;8.(. Co copyright shall subsist in any work of the ,o!ern"ent of the Philippines. Bowe!er# prior appro!al of the go!ern"ent agency or office wherein the work is created shall be necessary for e$ploitation of such work for profit. Such agency or office "ay# a"ong other things# i"pose as a condition the pay"ent of royalties. Co prior appro!al or conditions shall be re<uired for the use of any purpose of statutes# rules and regulations# and speeches# lectures# ser"ons# addresses# and dissertations# pronounced# read or rendered in courts of 7ustice# before ad"inistrati!e agencies# in deliberati!e asse"blies and in "eetings of public character. %Sec. A# first par.# P.-. Co. 'A& (;8.0. The author of speeches# lectures# ser"ons# addresses# and dissertations "entioned in the preceding paragraphs shall ha!e the e$clusi!e right of "aking a collection of his works. %n& (;8.1. Cotwithstanding the foregoing pro!isions# the ,o!ern"ent is not precluded fro" recei!ing and holding copyrights transferred to it by assign"ent# be<uest or otherwise* nor shall publication or republication by the ,o!ern"ent in a public docu"ent of any work in which copyright is subsisting be taken to cause any abridg"ent or annul"ent of the copyright or to authorie any use or appropriation of such work without the consent of the copyright owner. %Sec. A# third par.# P.-. Co. 'A& C!APTER ( C$P%RI!T $R EC$N$-IC RI!TS Section 177. Copyright or +conomic Rights. - Sub7ect to the pro!isions of Chapter 6III# copyright or econo"ic rights shall consist of the e$clusi!e right to carry out# authorie or pre!ent the following acts: (;;.(. )eproduction of the work or substantial portion of the work* (;;.0. -ra"atiation# translation# adaptation# abridg"ent# arrange"ent or other transfor"ation of the work* (;;.1. The first public distribution of the original and each copy of the work by sale or other for"s of transfer of ownership* (;;.'. )ental of the original or a copy of an audio!isual or cine"atographic work# a work e"bodied in a sound recording# a co"puter progra"# a co"pilation of data and other "aterials or a "usical work in graphic for"# irrespecti!e of the ownership of the original or the copy which is the sub7ect of the rental* %n& (;;.3. Public display of the original or a copy of the work* (;;.8. Public perfor"ance of the work* and (;;.;. 2ther co""unication to the public of the work. %Sec. 3# P. -. Co. 'Aa& C!APTER (I $)NERS!IP $' C$P%RI!T Section 178. Rules on Copyright !-nership. - Copyright ownership shall be go!erned by the following rules: (;@.( Sub7ect to the pro!isions of this section# in the case of original literary and artistic works# copyright shall belong to the author of the work* (;@.0. In the case of works of 7oint authorship# the co-authors shall be the original owners of the copyright and in the absence of agree"ent# their rights shall be go!erned by the rules on co- ownership. If# howe!er# a work of 7oint 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* (;@.1. In the case of work created by an author during and in the course of his e"ploy"ent# the copyright shall belong to: %a& The e"ployee# if the creation of the ob7ect of copyright is not a part of his regular duties e!en if the e"ployee uses the ti"e# facilities and "aterials of the e"ployer. %b& The e"ployer# if the work is the result of the perfor"ance of his regularly-assigned duties# unless there is an agree"ent# e$press or i"plied# to the contrary. (;@.'. In the case of a work co""issioned by a person other than an e"ployer of the author and who pays for it and the work is "ade in pursuance of the co""ission# the person who so co""issioned the work shall ha!e ownership of the work# but the copyright thereto shall re"ain with the creator# unless there is a written stipulation to the contrary* (;@.3. In the case of audio!isual work# the copyright shall belong to the producer# the author of the scenario# the co"poser of the "usic# the fil" director# and the author of the work so adapted. Bowe!er# sub7ect to contrary or other stipulations a"ong the creators# the producer shall e$ercise the copyright to an e$tent re<uired for the e$hibition of the work in any "anner# e$cept for the right to collect perfor"ing license fees for the perfor"ance of "usical co"positions# with or without words# which are incorporated into the work* and (;@.8. In respect of letters# the copyright shall belong to the writer sub7ect to the pro!isions of Article ;01 of the Ci!il Code. %Sec. 8# P.-. Co. 'Aa& Section 179. (nonymous and Pseudonymous 8or&s. - :or purposes of this Act# the publishers shall be dee"ed to represent the authors of articles and other writings published without the na"es of the authors or under pseudony"s# unless the contrary appears# or the pseudony"s or adopted na"e lea!es no doubt as to the author=s identity# or if the author of the anony"ous works discloses his identity. %Sec. ;# P.-. 'A& C!APTER (II TRANS'ER $R ASSIN-ENT $' C$P%RI!T Section 18,. Rights of (ssignee. - (@?.(. The copyright "ay be assigned in whole or in part. Fithin the scope of the assign"ent# the assignee is entitled to all the rights and re"edies which the assignor had with respect to the copyright. (@?.0. The copyright is not dee"ed assigned inter !i!os in whole or in part unless there is a written indication of such intention. (@?.1. The sub"ission of a literary# photographic or artistic work to a newspaper# "againe or periodical for publication shall constitute only a license to "ake a single publication unless a greater right is e$pressly granted. If two %0& or "ore persons 7ointly own a copyright or any part thereof# neither of the owners shall be entitled to grant licenses without the prior written consent of the other owner or owners. %Sec. (3# P.-. Co. 'Aa& Section 181. Copyright and *aterial !b1ect. - The copyright is distinct fro" the property in the "aterial ob7ect sub7ect to it. Conse<uently# the transfer or assign"ent of the copyright shall not itself constitute a transfer of the "aterial ob7ect. Cor shall a transfer or assign"ent of the sole copy or of one or se!eral copies of the work i"ply transfer or assign"ent of the copyright. %Sec. (8# P.-. Co. 'A& Section 182. iling of (ssignment or 'icense. - An assign"ent or e$clusi!e license "ay be filed in duplicate with the Cational .ibrary upon pay"ent of the prescribed fee for registration in books and records kept for the purpose. /pon recording# a copy of the instru"ent shall be returned to the sender with a notation of the fact of record. Cotice of the record shall be published in the IP2 ,aette. %Sec. (A# P.-. Co. 'Aa& Section 183. Designation of Society. - The copyright owners or their heirs "ay designate a society of artists# writers or co"posers to enforce their econo"ic rights and "oral rights on their behalf. %Sec. 10# P.-. Co. 'Aa& C!APTER (III "I-ITATI$NS $N C$P%RI!T Section 18*. 'imitations on Copyright. - (@'.(. Cotwithstanding the pro!isions of Chapter 6# the following acts shall not constitute infringe"ent of copyright: %a& The recitation or perfor"ance of a work# once it has been lawfully "ade accessible to the public# if done pri!ately and free of charge or if "ade strictly for a charitable or religious institution or society* %Sec. (?%(&# P.-. Co. 'A& %b& The "aking of <uotations fro" a published work if they are co"patible with fair use and only to the e$tent 7ustified for the purpose# including <uotations fro" newspaper articles and periodicals in the for" of press su""aries: Pro!ided# That the source and the na"e of the author# if appearing on the work# are "entioned* %Sec. ((# third par.# P.-. Co. 'A& %c& The reproduction or co""unication to the public by "ass "edia of articles on current political# social# econo"ic# scientific or religious topic# lectures# addresses and other works of the sa"e nature# which are deli!ered in public if such use is for infor"ation purposes and has not been e$pressly reser!ed: Pro!ided# That the source is clearly indicated* %Sec. ((# P.-. Co. 'A& %d& The reproduction and co""unication to the public of literary# scientific or artistic works as part of reports of current e!ents by "eans of photography# cine"atography or broadcasting to the e$tent necessary for the purpose* %Sec. (0# P.-. Co. 'A& %e& The inclusion of a work in a publication# broadcast# or other co""unication to the public# sound recording or fil"# if such inclusion is "ade by way of illustration for teaching purposes and is co"patible with fair use: Pro!ided# That the source and of the na"e of the author# if appearing in the work# are "entioned* %f& The recording "ade in schools# uni!ersities# or educational institutions of a work included in a broadcast for the use of such schools# uni!ersities or educational institutions: Pro!ided# That such recording "ust be deleted within a reasonable period after they were first broadcast: Pro!ided# further# That such recording "ay not be "ade fro" audio!isual works which are part of the general cine"a repertoire of feature fil"s e$cept for brief e$cerpts of the work* %g& The "aking of ephe"eral recordings by a broadcasting organiation by "eans of its own facilities and for use in its own broadcast* %h& The use "ade of a work by or under the direction or control of the ,o!ern"ent# by the Cational .ibrary or by educational# scientific or professional institutions where such use is in the public interest and is co"patible with fair use* %i& The public perfor"ance or the co""unication to the public of a work# in a place where no ad"ission fee is charged in respect of such public perfor"ance or co""unication# by a club or institution for charitable or educational purpose only# whose ai" is not profit "aking# sub7ect to such other li"itations as "ay be pro!ided in the )egulations* %n& %7& Public display of the original or a copy of the work not "ade by "eans of a fil"# slide# tele!ision i"age or otherwise on screen or by "eans of any other de!ice or process: Pro!ided# That either the work has been published# or# that the original or the copy displayed has been sold# gi!en away or otherwise transferred to another person by the author or his successor in title* and %k& Any use "ade of a work for the purpose of any 7udicial proceedings or for the gi!ing of professional ad!ice by a legal practitioner. (@'.0. The pro!isions of this section shall be interpreted in such a way as to allow the work to be used in a "anner which does not conflict with the nor"al e$ploitation of the work and does not unreasonably pre7udice the right holder=s legiti"ate interests. Section 18+. air ,se of a Copyrighted 8or&. - (@3.(. The fair use of a copyrighted work for criticis"# co""ent# news reporting# teaching including "ultiple copies for classroo" use# scholarship# research# and si"ilar purposes is not an infringe"ent of copyright. -eco"pilation# which is understood here to be the reproduction of the code and translation of the for"s of the co"puter progra" to achie!e the inter-operability of an independently created co"puter progra" with other progra"s "ay also constitute fair use. In deter"ining whether the use "ade 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 co""ercial nature or is for non-profit educational purposes* %b& The nature of the copyrighted work* %c& The a"ount 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 "arket for or !alue of the copyrighted work. (@3.0. The fact that a work is unpublished shall not by itself bar a finding of fair use if such finding is "ade upon consideration of all the abo!e factors. Section 186. 8or& of (rchitecture. - 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 for" or in any for" recogniably deri!ed fro" the original: Pro!ided# That the copyright in any such work shall not include the right to control the reconstruction or rehabilitation in the sa"e style as the original of a building to which that copyright relates. %n& Section 187. Reproduction of Published 8or&. - (@;.(. Cotwithstanding the pro!ision of Section (;;# and sub7ect to the pro!isions of Subsection (@;.0# the pri!ate reproduction of a published work in a single copy# where the reproduction is "ade by a natural person e$clusi!ely for research and pri!ate study# shall be per"itted# without the authoriation of the owner of copyright in the work. (@;.0. The per"ission granted under Subsection (@;.( shall not e$tend to the reproduction of: %a& A work of architecture in the for" of building or other construction* %b& An entire book# or a substantial part thereof# or of a "usical work in graphic for" by reprographic "eans* %c& A co"pilation of data and other "aterials* %d& A co"puter progra" e$cept as pro!ided in Section (@A* and %e& Any work in cases where reproduction would unreasonably conflict with a nor"al e$ploitation of the work or would otherwise unreasonably pre7udice the legiti"ate interests of the author. %n& Section 188. Reprographic Reproduction by 'ibraries. - (@@.(. Cotwithstanding the pro!isions of Subsection (;;.8# any library or archi!e whose acti!ities are not for profit "ay# without the authoriation of the author of copyright owner# "ake a single copy of the work by reprographic reproduction: %a& Fhere the work by reason of its fragile character or rarity cannot be lent to user in its original for"* %b& Fhere the works are isolated articles contained in co"posite works or brief portions of other published works and the reproduction is necessary to supply the"# when this is considered e$pedient# to persons re<uesting their loan for purposes of research or study instead of lending the !olu"es or booklets which contain the"* and %c& Fhere the "aking of such a copy is in order to preser!e and# if necessary in the e!ent that it is lost# destroyed or rendered unusable# replace a copy# or to replace# in the per"anent collection of another si"ilar library or archi!e# a copy which has been lost# destroyed or rendered unusable and copies are not a!ailable with the publisher. (@@.0. Cotwithstanding the abo!e pro!isions# it shall not be per"issible to produce a !olu"e of a work published in se!eral !olu"es or to produce "issing to"es or pages of "againes or si"ilar works# unless the !olu"e# to"e or part is out of stock: Pro!ided# That e!ery library which# by law# is entitled to recei!e copies of a printed work# shall be entitled# when special reasons so re<uire# to reproduce a copy of a published work which is considered necessary for the collection of the library but which is out of stock. %Sec. (1# P.-. 'Aa& Section 189. Reproduction of Computer Program. - (@A.(. Cotwithstanding the pro!isions of Section (;;# the reproduction in one %(& back-up copy or adaptation of a co"puter progra" shall be per"itted# without the authoriation of the author of# or other owner of copyright in# a co"puter progra"# by the lawful owner of that co"puter progra": Pro!ided# That the copy or adaptation is necessary for: %a& The use of the co"puter progra" in con7unction with a co"puter for the purpose# and to the e$tent# for which the co"puter progra" has been obtained* and %b& Archi!al purposes# and# for the replace"ent of the lawfully owned copy of the co"puter progra" in the e!ent that the lawfully obtained copy of the co"puter progra" is lost# destroyed or rendered unusable. (@A.0. Co copy or adaptation "entioned in this Section shall be used for any purpose other than the ones deter"ined in this Section# and any such copy or adaptation shall be destroyed in the e!ent that continued possession of the copy of the co"puter progra" ceases to be lawful. (@A.1. This pro!ision shall be without pre7udice to the application of Section (@3 whene!er appropriate. %n& Section 19,. Importation for Personal Purposes. - (A?.(. Cotwithstanding the pro!ision of Subsection (;;.8# but sub7ect to the li"itation under the Subsection (@3.0# the i"portation of a copy of a work by an indi!idual for his personal purposes shall be per"itted without the authoriation of the author of# or other owner of copyright in# the work under the following circu"stances: %a& Fhen copies of the work are not a!ailable in the Philippines and: %i& Cot "ore than one %(& copy at one ti"e is i"ported for strictly indi!idual use only* or %ii& The i"portation is by authority of and for the use of the Philippine ,o!ern"ent* or %iii& The i"portation# consisting of not "ore than three %1& such copies or likenesses in any one in!oice# 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 encourage"ent of the fine arts# or for any state school# college# uni!ersity# or free public library in the Philippines. %b& Fhen such copies for" parts of libraries and personal baggage belonging to persons or fa"ilies arri!ing fro" foreign countries and are not intended for sale: Pro!ided# That such copies do not e$ceed three %1&. (A?.0. Copies i"ported as allowed by this Section "ay not lawfully be used in any way to !iolate the rights of owner the copyright or annul or li"it the protection secured by this Act# and such unlawful use shall be dee"ed an infringe"ent and shall be punishable as such without pre7udice to the proprietor=s right of action. (A?.1. Sub7ect to the appro!al of the Secretary of :inance# the Co""issioner of Custo"s is hereby e"powered to "ake rules and regulations for pre!enting the i"portation of articles the i"portation of which is prohibited under this Section and under treaties and con!entions to which the Philippines "ay be a party and for seiing and conde"ning and disposing of the sa"e in case they are disco!ered after they ha!e been i"ported. %Sec. 1?# P.-. Co. 'A& C!APTER I. &EP$SIT AN& N$TICE Section 191. Registration and Deposit -ith /ational 'ibrary and the Supreme Court 'ibrary. - After the first public disse"ination of perfor"ance by authority of the copyright owner of a work falling under Subsections (;0.(# (;0.0 and (;0.1 of this Act# there shall# for the purpose of co"pleting the records of the Cational .ibrary and the Supre"e Court .ibrary# within three %1& weeks# be registered and deposited with it# by personal deli!ery or by registered "ail two %0& co"plete copies or reproductions of the work in such for" as the directors of said libraries "ay prescribe. A certificate of deposit shall be issued for which the prescribed fee shall be collected and the copyright owner shall be e$e"pt fro" "aking additional deposit of the works with the Cational .ibrary and the Supre"e Court .ibrary under other laws. If# within three %1& weeks after receipt by the copyright owner of a written de"and fro" the directors for such deposit# the re<uired copies or reproductions are not deli!ered and the fee is not paid# the copyright owner shall be liable to pay a fine e<ui!alent to the re<uired fee per "onth of delay and to pay to the Cational .ibrary and the Supre"e Court .ibrary the a"ount of the retail price of the best edition of the work. 2nly the abo!e "entioned classes of work shall be accepted for deposit by the Cational .ibrary and the Supre"e Court .ibrary. %Sec. 08# P.-. Co. 'Aa& Section 192. /otice of Copyright. - 4ach copy of a work published or offered for sale "ay contain a notice bearing the na"e of the copyright owner# and the year of its first publication# and# in copies produced after the creator=s death# the year of such death. %Sec. 0;# P.-. Co. 'Aa& C!APTER . -$RA" RI!TS Section 193. Scope of *oral Rights. - The author of a work shall# independently of the econo"ic rights in Section (;; or the grant of an assign"ent or license with respect to such right# ha!e the right: (A1.(. To re<uire that the authorship of the works be attributed to hi"# in particular# the right that his na"e# as far as practicable# be indicated in a pro"inent way on the copies# and in connection with the public use of his work* (A1.0. To "ake any alterations of his work prior to# or to withhold it fro" publication* (A1.1. To ob7ect to any distortion# "utilation or other "odification of# or other derogatory action in relation to# his work which would be pre7udicial to his honor or reputation* and (A1.'. To restrain the use of his na"e with respect to any work not of his own creation or in a distorted !ersion of his work. %Sec. 1'# P.-. Co. 'A& Section 19*. Breach of Contract. - An author cannot be co"pelled to perfor" his contract to create a work or for the publication of his work already in e$istence. Bowe!er# he "ay be held liable for da"ages for breach of such contract. %Sec. 13# P.-. Co. 'A& Section 19+. 8aiver of *oral Rights. - An author "ay wai!e his rights "entioned in Section (A1 by a written instru"ent# but no such wai!er shall be !alid where its effects is to per"it another: (A3.(. To use the na"e of the author# or the title of his work# or otherwise to "ake use of his reputation with respect to any !ersion or adaptation of his work which# because of alterations therein# would substantially tend to in7ure the literary or artistic reputation of another author* or (A3.0. To use the na"e of the author with respect to a work he did not create. %Sec. 18# P.-. Co. 'A& Section 196. Contribution to Collective 8or&. - Fhen an author contributes to a collecti!e work# his right to ha!e his contribution attributed to hi" is dee"ed wai!ed unless he e$pressly reser!es it. %Sec. 1;# P.-. Co. 'A& Section 197. +diting) (rranging and (daptation of 8or&. - In the absence of a contrary stipulation at the ti"e an author licenses or per"its another to use his work# the necessary editing# arranging or adaptation of such work# for publication# broadcast# use in a "otion picture# dra"atiation# or "echanical or electrical reproduction in accordance with the reasonable and custo"ary standards or re<uire"ents of the "ediu" in which the work is to be used# shall not be dee"ed to contra!ene the author=s rights secured by this chapter. Cor shall co"plete destruction of a work unconditionally transferred by the author be dee"ed to !iolate such rights. %Sec. 1@# P.-. Co. 'A& Section 198. Term of *oral Rights. - (A@.(. The rights of an author under this chapter shall last during the lifeti"e of the author and for fifty %3?& years after his death and shall not be assignable or sub7ect to license. The person or persons to be charged with the posthu"ous enforce"ent of these rights shall be na"ed in writing to be filed with the Cational .ibrary. In default of such person or persons# such enforce"ent shall de!ol!e upon either the author=s heirs# and in default of the heirs# the -irector of the Cational .ibrary. (A@.0. :or purposes of this Section# "Person" shall "ean any indi!idual# partnership# corporation# association# or society. The -irector of the Cational .ibrary "ay prescribe reasonable fees to be charged for his ser!ices in the application of pro!isions of this Section. %Sec. 1A# P.-. Co. 'A& Section 199. +nforcement Remedies. - 6iolation of any of the rights conferred by this Chapter shall entitle those charged with their enforce"ent to the sa"e rights and re"edies a!ailable to a copyright owner. In addition# da"ages which "ay be a!ailed of under the Ci!il Code "ay also be reco!ered. Any da"age reco!ered after the creator=s death shall be held in trust for and re"itted to his heirs# and in default of the heirs# shall belong to the go!ern"ent. %Sec. '?# P - Co. 'A& C!APTER .I RI!TS T$ PR$CEE&S IN S#BSE0#ENT TRANS'ERS Section 2,,. Sale or 'ease of 8or&. - In e!ery sale or lease of an original work of painting or sculpture or of the original "anuscript of a writer or co"poser# subse<uent to the first disposition thereof by the author# the author or his heirs shall ha!e an inalienable right to participate in the gross proceeds of the sale or lease to the e$tent of fi!e percent %3I&. This right shall e$ist during the lifeti"e of the author and for fifty %3?& years after his death. %Sec. 1(# P.-. Co. 'A& Section 2,1. 8or&s /ot Covered. - The pro!isions of this Chapter shall not apply to prints# etchings# engra!ings# works of applied art# or works of si"ilar kind wherein the author pri"arily deri!es gain fro" the proceeds of reproductions. %Sec. 11# P.-. Co. 'A& C!APTER .II RI!TS $' PER'$R-ERS, PR$&#CERS $' S$#N&S REC$R&INS AN& BR$A&CASTIN $RANI1ATI$NS Section 2,2. Definitions. - :or the purpose of this Act# the following ter"s shall ha!e the following "eanings: 0?0.(. "Perfor"ers" are actors# singers# "usicians# dancers# and other persons who act# sing# declai"# play in# interpret# or otherwise perfor" literary and artistic work* 0?0.0. "Sound recording" "eans the fi$ation of the sounds of a perfor"ance or of other sounds# or representation of sound# other than in the for" of a fi$ation incorporated in a cine"atographic or other audio!isual work* 0?0.1. An "audio!isual work or fi$ation" is a work that consists of a series of related i"ages which i"part the i"pression of "otion# with or without acco"panying sounds# susceptible of being "ade !isible and# where acco"panied by sounds# susceptible of being "ade audible* 0?0.'. ":i$ation" "eans the e"bodi"ent of sounds# or of the representations thereof# fro" which they can be percei!ed# reproduced or co""unicated through a de!ice* 0?0. 3. "Producer of a sound recording" "eans the person# or the legal entity# who or which takes the initiati!e and has the responsibility for the first fi$ation of the sounds of a perfor"ance or other sounds# or the representation of sounds* 0?0.8. "Publication of a fi$ed perfor"ance or a sound recording" "eans the offering of copies of the fi$ed perfor"ance or the sound recording to the public# with the consent of the right holder: Pro!ided# That copies are offered to the public in reasonable <uality* 0?0.;. "9roadcasting" "eans the trans"ission by wireless "eans for the public reception of sounds or of i"ages or of representations thereof* such trans"ission by satellite is also "broadcasting" where the "eans for decrypting are pro!ided to the public by the broadcasting organiation or with its consent* 0?0.@. "9roadcasting organiation" shall include a natural person or a 7uridical entity duly authoried to engage in broadcasting* and 0?0.A "Co""unication to the public of a perfor"ance or a sound recording" "eans the trans"ission to the public# by any "ediu"# otherwise than by broadcasting# of sounds of a perfor"ance or the representations of sounds fi$ed in a sound recording. :or purposes of Section 0?A# "co""unication to the public" includes "aking the sounds or representations of sounds fi$ed in a sound recording audible to the public. Section 2,3. Scope of Performers6 Rights. - Sub7ect to the pro!isions of Section 0(0# perfor"ers shall en7oy the following e$clusi!e rights: 0?1.(. As regards their perfor"ances# the right of authoriing: %a& The broadcasting and other co""unication to the public of their perfor"ance* and %b& The fi$ation of their unfi$ed perfor"ance. 0?1.0. The right of authoriing the direct or indirect reproduction of their perfor"ances fi$ed in sound recordings# in any "anner or for"* 0?1.1. Sub7ect to the pro!isions of Section 0?8# the right of authoriing the first public distribution of the original and copies of their perfor"ance fi$ed in the sound recording through sale or rental or other for"s of transfer of ownership* 0?1.'. The right of authoriing the co""ercial rental to the public of the original and copies of their perfor"ances fi$ed in sound recordings# e!en after distribution of the" by# or pursuant to the authoriation by the perfor"er* and 0?1.3. The right of authoriing the "aking a!ailable to the public of their perfor"ances fi$ed in sound recordings# by wire or wireless "eans# in such a way that "e"bers of the public "ay access the" fro" a place and ti"e indi!idually chosen by the". %Sec. '0# P.-. Co. 'Aa& Section 2,*. *oral Rights of Performers. - 0?'.(. Independently of a perfor"er=s econo"ic rights# the perfor"er# shall# as regards his li!e aural perfor"ances or perfor"ances fi$ed in sound recordings# ha!e the right to clai" to be identified as the perfor"er of his perfor"ances# e$cept where the o"ission is dictated by the "anner of the use of the perfor"ance# and to ob7ect to any distortion# "utilation or other "odification of his perfor"ances that would be pre7udicial to his reputation. 0?'.0. The rights granted to a perfor"er in accordance with Subsection 0?1.( shall be "aintained and e$ercised fifty %3?& years after his death# by his heirs# and in default of heirs# the go!ern"ent# where protection is clai"ed. %Sec. '1# P.-. Co. 'A& Section 2,+. 'imitation on Right. - 0?3.(. Sub7ect to the pro!isions of Section 0?8# once the perfor"er has authoried the broadcasting or fi$ation of his perfor"ance# the pro!isions of Sections 0?1 shall ha!e no further application. 0?3.0. The pro!isions of Section (@' and Section (@3 shall apply "utatis "utandis to perfor"ers. %n& Section 2,6. (dditional Remuneration for Subse.uent Communications or Broadcasts. - /nless otherwise pro!ided in the contract# in e!ery co""unication to the public or broadcast of a perfor"ance subse<uent to the first co""unication or broadcast thereof by the broadcasting organiation# the perfor"er shall be entitled to an additional re"uneration e<ui!alent to at least fi!e percent %3I& of the original co"pensation he or she recei!ed for the first co""unication or broadcast. %n& Section 2,7. Contract Terms. - Cothing in this Chapter shall be construed to depri!e perfor"ers of the right to agree by contracts on ter"s and conditions "ore fa!orable for the" in respect of any use of their perfor"ance. %n& C!APTER .III PR$&#CERS $' S$#N& REC$R&INS Section 2,8. Scope of Right. - Sub7ect to the pro!isions of Section 0(0# producers of sound recordings shall en7oy the following e$clusi!e rights: 0?@.(. The right to authorie the direct or indirect reproduction of their sound recordings# in any "anner or for"* the placing of these reproductions in the "arket and the right of rental or lending* 0?@.0. The right to authorie the first public distribution of the original and copies of their sound recordings through sale or rental or other for"s of transferring ownership* and 0?@.1. The right to authorie the co""ercial rental to the public of the original and copies of their sound recordings# e!en after distribution by the" by or pursuant to authoriation by the producer. %Sec. '8# P.-. Co. 'Aa& Section 2,9. Communication to the Public. - If a sound recording published for co""ercial purposes# or a reproduction of such sound recording# is used directly for broadcasting or for other co""unication to the public# or is publicly perfor"ed with the intention of "aking and enhancing profit# a single e<uitable re"uneration for the perfor"er or perfor"ers# and the producer of the sound recording shall be paid by the user to both the perfor"ers and the producer# who# in the absence of any agree"ent shall share e<ually. %Sec. ';# P.-. Co. 'Aa& Section 21,. 'imitation of Right. - Sections (@' and (@3 shall apply "utatis "utandis to the producer of sound recordings. %Sec. '@# P.-. Co. 'Aa& C!APTER .I( BR$A&CASTIN $RANI1ATI$NS Section 211. Scope of Right. - Sub7ect to the pro!isions of Section 0(0# broadcasting organiations shall en7oy the e$clusi!e right to carry out# authorie or pre!ent any of the following acts: 0((.(. The rebroadcasting of their broadcasts* 0((.0. The recording in any "anner# including the "aking of fil"s or the use of !ideo tape# of their broadcasts for the purpose of co""unication to the public of tele!ision broadcasts of the sa"e* and 0((.1. The use of such records for fresh trans"issions or for fresh recording. %Sec. 30# P.-. Co. 'A& C!APTER .( "I-ITATI$NS $N PR$TECTI$N Section 212. 'imitations on Rights. - Sections 0?1# 0?@ and 0?A shall not apply where the acts referred to in those Sections are related to: 0(0.(. The use by a natural person e$clusi!ely for his own personal purposes* 0(0.0. /sing short e$cerpts for reporting current e!ents* 0(0.1. /se solely for the purpose of teaching or for scientific research* and 0(0.'. :air use of the broadcast sub7ect to the conditions under Section (@3. %Sec. ''# P.-. Co. 'Aa& C!APTER .(I TER- $' PR$TECTI$N Section 213. Term of Protection. - 0(1.(. Sub7ect to the pro!isions of Subsections 0(1.0 to 0(1.3# the copyright in works under Sections (;0 and (;1 shall be protected during the life of the author and for fifty %3?& years after his death. This rule also applies to posthu"ous works. %Sec. 0(# first sentence# P.-. Co. 'Aa& 0(1.0. In case of works of 7oint authorship# the econo"ic rights shall be protected during the life of the last sur!i!ing author and for fifty %3?& years after his death. %Sec. 0(# second sentence# P.-. Co. 'A& 0(1.1. In case of anony"ous or pseudony"ous works# the copyright shall be protected for fifty %3?& years fro" the date on which the work was first lawfully published: Pro!ided# That where# before the e$piration of the said period# the author=s identity is re!ealed or is no longer in doubt# the pro!isions of Subsections 0(1.(. and 0(1.0 shall apply# as the case "ay be: Pro!ided# further# That such works if not published before shall be protected for fifty %3?& years counted fro" the "aking of the work. %Sec. 01# P.-. Co. 'A& 0(1.'. In case of works of applied art the protection shall be for a period of twenty-fi!e %03& years fro" the date of "aking. %Sec. 0'%9&# P.-. Co. 'Aa& 0(1.3. In case of photographic works# the protection shall be for fifty %3?& years fro" publication of the work and# if unpublished# fifty %3?& years fro" the "aking. %Sec. 0'%C&# P.-. 'Aa& 0(1.8. In case of audio-!isual works including those produced by process analogous to photography or any process for "aking audio-!isual recordings# the ter" shall be fifty %3?& years fro" date of publication and# if unpublished# fro" the date of "aking. %Sec. 0'%C&# P.-. Co. 'Aa& Section 21*. Calculation of Term. - The ter" of protection subse<uent to the death of the author pro!ided in the preceding Section shall run fro" the date of his death or of publication# but such ter"s shall always be dee"ed to begin on the first day of Hanuary of the year following the e!ent which ga!e rise to the". %Sec. 03# P.-. Co. 'A& Section 21+. Term of Protection for Performers) Producers and Broadcasting !rgani$ations. - 0(3.(. The rights granted to perfor"ers and producers of sound recordings under this law shall e$pire: %a& :or perfor"ances not incorporated in recordings# fifty %3?& years fro" the end of the year in which the perfor"ance took place* and %b& :or sound or i"age and sound recordings and for perfor"ances incorporated therein# fifty %3?& years fro" the end of the year in which the recording took place. 0(3.0. In case of broadcasts# the ter" shall be twenty %0?& years fro" the date the broadcast took place. The e$tended ter" shall be applied only to old works with subsisting protection under the prior law. %Sec. 33# P.-. Co. 'Aa& C!APTER .(II IN'RINE-ENT Section 216. Remedies for Infringement. - 0(8.(. Any person infringing a right protected under this law shall be liable: %a& To an in7unction restraining such infringe"ent. The court "ay also order the defendant to desist fro" an infringe"ent# a"ong others# to pre!ent the entry into the channels of co""erce of i"ported goods that in!ol!e an infringe"ent# i""ediately after custo"s clearance of such goods. %b& Pay to the copyright proprietor or his assigns or heirs such actual da"ages# including legal costs and other e$penses# as he "ay ha!e incurred due to the infringe"ent as well as the profits the infringer "ay ha!e "ade due to such infringe"ent# and in pro!ing profits the plaintiff shall be re<uired to pro!e sales only and the defendant shall be re<uired to pro!e e!ery ele"ent of cost which he clai"s# or# in lieu of actual da"ages and profits# such da"ages which to the court shall appear to be 7ust and shall not be regarded as penalty. %c& -eli!er under oath# for i"pounding during the pendency of the action# upon such ter"s and conditions as the court "ay prescribe# sales in!oices and other docu"ents e!idencing sales# all articles and their packaging alleged to infringe a copyright and i"ple"ents for "aking the". %d& -eli!er under oath for destruction without any co"pensation all infringing copies or de!ices# as well as all plates# "olds# or other "eans for "aking such infringing copies as the court "ay order. %e& Such other ter"s and conditions# including the pay"ent of "oral and e$e"plary da"ages# which the court "ay dee" proper# wise and e<uitable and the destruction of infringing copies of the work e!en in the e!ent of ac<uittal in a cri"inal case. 0(8.0. In an infringe"ent action# the court shall also ha!e the power to order the seiure and i"pounding of any article which "ay ser!e as e!idence in the court proceedings. %Sec. 0@# P.-. Co. 'Aa& Section 217. Criminal Penalties. - 0(;.(. Any person infringing any right secured by pro!isions of Part I6 of this Act or aiding or abetting such infringe"ent shall be guilty of a cri"e punishable by: %a& I"prison"ent of one %(& year to three %1& years plus a fine ranging fro" :ifty thousand pesos %P3?#???& to 2ne hundred fifty thousand pesos %P(3?#???& for the first offense. %b& I"prison"ent of three %1& years and one %(& day to si$ %8& years plus a fine ranging fro" 2ne hundred fifty thousand pesos %P(3?#???& to :i!e hundred thousand pesos %P3??#???& for the second offense. %c& I"prison"ent of si$ %8& years and one %(& day to nine %A& years plus a fine ranging fro" fi!e hundred thousand pesos %P3??#???& to 2ne "illion fi!e hundred thousand pesos %P(#3??#???& for the third and subse<uent offenses. %d& In all cases# subsidiary i"prison"ent in cases of insol!ency. 0(;.0. In deter"ining the nu"ber of years of i"prison"ent and the a"ount of fine# the court shall consider the !alue of the infringing "aterials that the defendant has produced or "anufactured and the da"age that the copyright owner has suffered by reason of the infringe"ent. 0(;.1. Any person who at the ti"e 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 e$posing for sale# or hire# the article* %b& -istributing the article for purpose of trade# or for any other purpose to an e$tent that will pre7udice the rights of the copyright owner in the work* or %c& Trade e$hibit of the article in public# shall be guilty of an offense and shall be liable on con!iction to i"prison"ent and fine as abo!e "entioned. %Sec. 0A# P.-. Co. 'Aa& Section 218. (ffidavit +vidence. - 0(@.(. In an action under this Chapter# an affida!it "ade before a notary public by or on behalf of the owner of the copyright in any work or other sub7ect "atter and stating that: %a& At the ti"e specified therein# copyright subsisted in the work or other sub7ect "atter* %b& Be or the person na"ed therein is the owner of the copyright* and %c& The copy of the work or other sub7ect "atter anne$ed thereto is a true copy thereof# shall be ad"itted in e!idence in any proceedings for an offense under this Chapter and shall be pri"a facie proof of the "atters therein stated until the contrary is pro!ed# and the court before which such affida!it is produced shall assu"e that the affida!it was "ade by or on behalf of the owner of the copyright. 0(@.0. In an action under this Chapter: %a& Copyright shall be presu"ed to subsist in the work or other sub7ect "atter to which the action relates if the defendant does not put in issue the <uestion whether copyright subsists in the work or other sub7ect "atter* and %b& Fhere the subsistence of the copyright is established# the plaintiff shall be presu"ed to be the owner of the copyright if he clai"s to be the owner of the copyright and the defendant does not put in issue the <uestion of his ownership. %c& Fhere the defendant# without good faith# puts in issue the <uestions of whether copyright subsists in a work or other sub7ect "atter to which the action relates# or the ownership of copyright in such work or sub7ect "atter# thereby occasioning unnecessary costs or delay in the proceedings# the court "ay direct that any costs to the defendant in respect of the action shall not be allowed by hi" and that any costs occasioned by the defendant to other parties shall be paid by hi" to such other parties. %n& Section 219. Presumption of (uthorship. - 0(A.(. The natural person whose na"e is indicated on a work in the usual "anner as the author shall# in the absence of proof to the contrary# be presu"ed to be the author of the work. This pro!ision shall be applicable e!en if the na"e is a pseudony"# where the pseudony" lea!es no doubt as to the identity of the author. 0(A.0. The person or body corporate whose na"e appears on a audio-!isual work in the usual "anner shall# in the absence of proof to the contrary# be presu"ed to be the "aker of said work. %n& Section 22,. International Registration of 8or&s. - A state"ent concerning a work# recorded in an international register in accordance with an international treaty to which the Philippines is or "ay beco"e a party# shall be construed as true until the contrary is pro!ed e$cept: 00?.(. Fhere the state"ent cannot be !alid under this Act or any other law concerning intellectual property. 00?.0. Fhere the state"ent is contradicted by another state"ent recorded in the international register. %n& C!APTER .(III SC$PE $' APP"ICATI$N Section 221. Points of (ttachment for 8or&s under Sections 9:; and 9:<. - 00(.(. The protection afforded by this Act to copyrightable works under Sections (;0 and (;1 shall apply to: %a& Forks of authors who are nationals of# or ha!e their habitual residence in# the Philippines* %b& Audio-!isual works the producer of which has his head<uarters or habitual residence in the Philippines* %c& Forks of architecture erected in the Philippines or other artistic works incorporated in a building or other structure located in the Philippines* %d& Forks first published in the Philippines* and %e& Forks first published in another country but also published in the Philippines within thirty days# irrespecti!e of the nationality or residence of the authors. 00(.0. The pro!isions of this Act shall also apply to works that are to be protected by !irtue of and in accordance with any international con!ention or other international agree"ent to which the Philippines is a party. %n& Section 222. Points of (ttachment for Performers. - The pro!isions of this Act on the protection of perfor"ers shall apply to: 000.(. Perfor"ers who are nationals of the Philippines* 000.0. Perfor"ers who are not nationals of the Philippines but whose perfor"ances: %a& Take place in the Philippines* or %b& Are incorporated in sound recordings that are protected under this Act* or %c& Fhich has not been fi$ed in sound recording but are carried by broadcast <ualifying for protection under this Act. %n& Section 223. Points of (ttachment for Sound Recordings. - The pro!isions of this Act on the protection of sound recordings shall apply to: 001.(. Sound recordings the producers of which are nationals of the Philippines* and 001.0. Sound recordings that were first published in the Philippines. %n& Section 22*. Points of (ttachment for Broadcasts. - 00'.(. The pro!isions of this Act on the protection of broadcasts shall apply to: %a& 9roadcasts of broadcasting organiations the head<uarters of which are situated in the Philippines* and %b& 9roadcasts trans"itted fro" trans"itters situated in the Philippines. 00'.0. The pro!isions of this Act shall also apply to perfor"ers who# and to producers of sound recordings and broadcasting organiations which# are to be protected by !irtue of and in accordance with any international con!ention or other international agree"ent to which the Philippines is a party. %n& C!APTER .I. INSTIT#TI$N $' ACTI$NS Section 22+. 5urisdiction. - Fithout pre7udice to the pro!isions of Subsection ;.(%c&# actions under this Act shall be cogniable by the courts with appropriate 7urisdiction under e$isting law. %Sec. 3;# P.-. Co. 'Aa& Section 226. Damages. - Co da"ages "ay be reco!ered under this Act after four %'& years fro" the ti"e the cause of action arose. %Sec. 3@# P.-. Co. 'A& C!APTER .. -ISCE""ANE$#S PR$(ISI$NS Section 227. !-nership of Deposit and Instruments. - All copies deposited and instru"ents in writing filed with the Cational .ibrary and the Supre"e Court .ibrary in accordance with the pro!isions of this Act shall beco"e the property of the ,o!ern"ent. %Sec. 8?# P.-. Co. 'A& Section 228. Public Records. - The section or di!ision of the Cational .ibrary and the Supre"e Court .ibrary charged with recei!ing copies and instru"ents deposited and with keeping records re<uired under this Act and e!erything in it shall be opened to public inspection. The -irector of the Cational .ibrary is e"powered to issue such safeguards and regulations as "ay be necessary to i"ple"ent this Section and other pro!isions of this Act. %Sec. 8(# P.-. Co. 'A& Section 229. Copyright Division3 ees. - The Copyright Section of the Cational .ibrary shall be classified as a -i!ision upon the effecti!ity of this Act. The Cational .ibrary shall ha!e the power to collect# for the discharge of its ser!ices under this Act# such fees as "ay be pro"ulgated by it fro" ti"e to ti"e sub7ect to the appro!al of the -epart"ent Bead. %Sec. 80# P.-. 'Aa& PART ( 'INA" PR$(ISI$NS Section 23,. +.uitable Principles to %overn Proceedings. - In all inter partes proceedings in the 2ffice under this Act# the e<uitable principles of laches# estoppel# and ac<uiescence where applicable# "ay be considered and applied. %Sec. A-A# ).A. Co. (83& Section 231. Reverse Reciprocity of oreign 'a-s. - Any condition# restriction# li"itation# di"inution# re<uire"ent# penalty or any si"ilar burden i"posed 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 7urisdiction. %n& Section 232. (ppeals. - 010.(. Appeals fro" decisions of regular courts shall be go!erned by the )ules of Court. /nless restrained by a higher court# the 7udg"ent of the trial court shall be e$ecutory e!en pending appeal under such ter"s and conditions as the court "ay prescribe. 010.0. /nless e$pressly pro!ided in this Act or other statutes# appeals fro" decisions of ad"inistrati!e officials shall be pro!ided in the )egulations. %n& Section 233. !rgani$ation of the !ffice3 +2emption from the Salary Standardi$ation 'a- and the (ttrition 'a-. - 011.(. The 2ffice shall be organied within one %(& year after the appro!al of this Act. It shall not be sub7ect to the pro!isions of )epublic Act Co. ;'1?. 011.0. The 2ffice shall institute its own co"pensation structure: Pro!ided# That the 2ffice shall "ake its own syste" confor" as closely as possible with the principles pro!ided for under )epublic Act Co. 8;3@. %n& Section 23*. (bolition of the Bureau of Patents) Trademar&s) and Technology Transfer. - The 9ureau of Patents# Trade"arks# and Technology Transfer under the -epart"ent of Trade and Industry is hereby abolished. All une$pended funds and fees# fines# royalties and other charges collected for the calendar year# properties# e<uip"ent and records of the 9ureau of Patents# Trade"arks and Technology Transfer# and such personnel as "ay be necessary are hereby transferred to the 2ffice. Personnel not absorbed or transferred to the 2ffice shall en7oy the retire"ent benefits granted under e$isting law# otherwise# they shall be paid the e<ui!alent of one "onth basic salary for e!ery year of ser!ice# or the e<ui!alent nearest fractions thereof fa!orable to the" on the basis of the highest salary recei!ed.%n& Section 23+. (pplications Pending on +ffective Date of (ct. - 013.(. All applications for patents pending in the 9ureau of Patents# Trade"arks 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 e$tent and for this purpose only# notwithstanding the foregoing general repeal thereof: Pro!ided# That applications for utility "odels or industrial designs pending at the effecti!e date of this Act# shall be proceeded with in accordance with the pro!isions of this Act# unless the applicants elect to prosecute said applications in accordance with the Acts under which they were filed. 013.0. All applications for registration of "arks or trade na"es pending in the 9ureau of Patents# Trade"arks and Technology Transfer at the effecti!e date of this Act "ay be a"ended# if practicable to bring the" under the pro!isions of this Act. The prosecution of such applications so a"ended and the grant of registrations thereon shall be proceeded with in accordance with the pro!isions of this Act. If such a"end"ents are not "ade# the prosecution of said applications shall be proceeded with and registrations thereon granted in accordance with the Acts under which said applications were filed# and said Acts are hereby continued in force to this e$tent for this purpose only# notwithstanding the foregoing general repeal thereof %n& Section 236. Preservation of +2isting Rights. - Cothing herein shall ad!ersely affect the rights on the enforce"ent of rights in patents# utility "odels# industrial designs# "arks and works# ac<uired in good faith prior to the effecti!e date of this Act. %n& Section 237. /otification on Berne (ppendi2. - The Philippines shall by proper co"pliance with the re<uire"ents set forth under the Appendi$ of the 9erne Con!ention %Paris Act# (A;(& a!ail itself of the special pro!isions regarding de!eloping countries# including pro!isions for licenses grantable by co"petent authority under the Appendi$. %n& Section 238. (ppropriations. - The funds needed to carry out the pro!isions of this Act shall be charged to the appropriations of the 9ureau of Patents# Trade"arks# and Technology Transfer under the current ,eneral Appropriations Act and the fees# fines# royalties and other charges collected by the 9ureau for the calendar year pursuant to Sections ('.( and 01' of this Act. Thereafter such su"s as "ay be necessary for its continued i"ple"entations shall be included in the annual ,eneral Appropriations Act. %n& Section 239. Repeals. - 01A.(. All Acts and parts of Acts inconsistent herewith# "ore particularly )epublic Act Co. (83# as a"ended* )epublic Act Co. (88# as a"ended* and Articles (@@ and (@A of the )e!ised Penal Code* Presidential -ecree Co. 'A# including Presidential -ecree Co. 0@3# as a"ended# are hereby repealed. 01A.0. +arks registered under )epublic Act Co. (88 shall re"ain in force but shall be dee"ed to ha!e been granted under this Act and shall be due for renewal within the period pro!ided for under this Act and# upon renewal shall be reclassified in accordance with the International Classification. Trade na"es and "arks registered in the Supple"ental )egister under )epublic Act Co. (88 shall re"ain in force but shall no longer be sub7ect to renewal. 01A.1. The pro!isions of this Act shall apply to works in which copyright protection obtained prior to the effecti!ity of this Act is subsisting: Pro!ided# That the application of this Act shall not result in the di"inution of such protection. %n& Section 2*,. Separability. - If any pro!ision of this Act or the application of such pro!ision to any circu"stances is held in!alid# the re"ainder of the Act shall not be affected thereby. %n& Section 2*1. +ffectivity. - This Act shall take effect on ( Hanuary (AA@. %n& Appro!ed: June 6, 1997