PART I
THE INTELLECTUAL
PROPERTY OFFICE
Section 1.Title.
- This Act shall be known as the "Intellectual Property Code of the
Philippines."
Sec. 2. Declaration
of State Policy. - The State
recognizes
that an effective intellectual and industrial property system is vital
to the development of domestic and creative activity, facilitates
transfer
of technology, attracts foreign investments, and ensures market access
for our products. It shall protect and secure the exclusive rights of
scientists,
inventors, artists and other gifted citizens to their intellectual
property
and creations, particularly when beneficial to the people, for such
periods
as provided in this Act.
The use of intellectual
property bears a social function. To this end, the State shall promote
the diffusion of knowledge and information for the promotion of
national
development and progress and the common good.
It is also the policy
of the State to streamline administrative procedures of registering
patents,
trademarks and copyright, to liberalize the registration on the
transfer
of technology, and to enhance the enforcement of intellectual property
rights in the Philippines. (n)
Sec. 3. International
Conventions and Reciprocity. - Any
person
who is a national or who is domiciled or has a real and effective
industrial
establishment in a country which is a party to any convention, treaty
or
agreement relating to intellectual property rights or the repression of
unfair competition, to which the Philippines is also a party, or
extends
reciprocal rights to nationals of the Philippines by law, shall be
entitled
to benefits to the extent necessary to give effect to any provision of
such convention, treaty or reciprocal law, in addition to the rights to
which any owner of an intellectual property right is otherwise entitled
by this Act. (n)
Sec. 4. Definitions.-
4.1. The term "intellectual
property rights" consists of:
[a] Copyright
and
Related Rights;
[b]
Trademarks and
Service Marks;
[c]
Geographic Indications;
[d]
Industrial Designs;
[e] Patents;
[f]
Layout-Designs
(Topographies) of Integrated Circuits; and
[g]
Protection of
Undisclosed Information (n) [TRIPS].
4.2. The
term
"technology
transfer arrangements" refers to contracts or agreements involving
the
transfer of systematic knowledge for the manufacture of a product, the
application of a
process, or rendering of a service including management contracts; and
the transfer,
assignment or licensing of all forms of intellectual property rights,
including
licensing of
computer software except computer software developed for mass market.
4.3. The term "Office"
refers to the Intellectual Property Office created by this Act.
4.4 The term "IPO
Gazette" refers to the gazette published by the Office under this
Act.
(n)
Sec. 5. Functions
of the Intellectual Property Office (IPO).
-
5.1. To
administer
and implement the State policies declared in this Act, there is hereby
created
the Intellectual Property Office (IPO) which shall have the following
functions:
[a]
Examine
applications for grant of letters patent for inventions and register
utility
models
and industrial designs;
[b]
Examine
applications for the registration of marks, geographic indication,
integrated
circuits;
[c]
Register
technology transfer arrangements and settle disputes involving
technology
transfer payments covered by the provisions of Part II, Chapter IX on
Voluntary
Licensing and develop and implement strategies to promote and
facilitate
technology
transfer;
[d]
Promote
the use of patent information as a tool for technology development;
[e]
Publish
regularly in its own publication the patents, marks, utility models and
industrial
designs, issued and approved, and the technology transfer arrangements
registered;
[f]
Administratively
adjudicate contested proceedings affecting intellectual property rights;
and
[g]
Coordinate
with other government agencies and the private sector efforts to
formulate
and implement plans and policies to strengthen the protection of
intellectual
property
rights in the country.
5.2. The Office
shall have custody of all records, books, drawings, specifications,
documents,
and
other papers and things relating to intellectual property rights
applications
filed with the Office.
(n)
Sec. 6. The Organizational
Structure of the IPO. - 6.1. The
Office
shall be headed by a Director General who shall be assisted by two (2)
Deputies Director General.
6.2. The Office
shall be divided into six (6) Bureaus, each of which shall be headed by
a Director
and assisted by an Assistant Director. These Bureaus are:
[a] The
Bureau
of Patents;
[b] The Bureau
of
Trademarks;
[c] The Bureau
of
Legal Affairs;
[d] The
Documentation,
Information and Technology Transfer Bureau;
[e] The
Management
Information System and EDP Bureau; and
[f] The
Administrative,
Financial and Personnel Services Bureau.
6.3. The
Director
General, Deputies Director General, Directors and Assistant Directors
shall
be
appointed by the President, and the other officers and employees of the
Office by the
Secretary of Trade and Industry, conformably with and under the Civil
Service
Law. (n)
Sec. 7. The Director
General and Deputies Director General. -
7.1. Functions.
- The Director General shall exercise the following powers and
functions:
[a] Manage
and direct all functions and activities of the Office, including the
promulgation
of rules and regulations to implement the objectives, policies, plans,
programs and projects of the Office: Provided, That in the exercise of
the authority to propose policies and standards in relation to the
following:
(1) the effective, efficient, and economical operations of the Office
requiring
statutory enactment; (2) coordination with other agencies of government
in relation to the enforcement of intellectual property rights; (3) the
recognition of attorneys, agents, or other persons representing
applicants
or other parties before the Office; and (4) the establishment of fees
for
the filing and processing of an application for a patent, utility model
or industrial design or mark or a collective mark, geographic
indication
and other marks of ownership, and for all other services performed and
materials furnished by the Office, the Director General shall be
subject
to the supervision of the Secretary of Trade and Industry;
[b] Exercise
exclusive
appellate jurisdiction over all decisions rendered by the Director of
Legal
Affairs, the Director of Patents, the Director of Trademarks, and the
Director
of the Documentation, Information and Technology Transfer Bureau. The
decisions
of the Director General in the exercise of his appellate jurisdiction
in
respect of the decisions of the Director of Patents, and the Director
of
Trademarks shall be appealable to the Court of Appeals in accordance
with
the Rules of Court; and those in respect of the decisions of the
Director
of Documentation, Information and Technology Transfer Bureau shall be
appealable
to the Secretary of Trade and Industry; and
[c] Exercise
original
jurisdiction to resolve disputes relating to the terms of a license
involving
the author’s right to public performance or other communication of his
work. The decisions of the Director General in these cases shall be
appealable
to the Secretary of Trade and Industry.
7.2. Qualifications.-
The Director General and the Deputies Director General must be natural
born citizens of the Philippines, at least thirty-five (35) years of
age
on the day of their
appointment, holders of a college degree, and of proven competence,
integrity,
probity and
independence: Provided, That the Director General and at least one (1)
Deputy Director
General shall be members of the Philippine Bar who have engaged in the
practice of law for
at least ten (10) years: Provided further, That in the selection of the
Director General and the
Deputies Director General, consideration shall be given to such
qualifications
as would result,
as far as practicable, in the balanced representation in the
Directorate
General of the various
fields of intellectual property.
7.3. Term
of Office. - The Director General and
the Deputies Director General shall be appointed
by the President for a term of five (5) years and shall be eligible for
reappointment only once:
Provided, That the first Director General shall have a first
term
of seven (7) years.
Appointment to any vacancy shall be only for the unexpired term of the
predecessor.
7.4. The
Office of the Director General. - The
Office of the Director General shall consist of the
Director General and the Deputies Director General, their immediate
staff
and such Offices
and Services that the Director General will set up to support directly
the Office of the Director
General. (n)
Sec. 8. The Bureau
of Patents. - The Bureau of Patents
shall
have the following functions:
8.1
Search and examination of patent applications and the grant of patents;
8.2
Registration of utility models, industrial designs, and integrated
circuits;
and
8.3
Conduct studies and researches in the field of patents in order to
assist
the Director General
in formulating policies on the administration and examination of
patents.
(n)
Sec. 9. The Bureau
of Trademarks. - The Bureau of
Trademarks
shall have the following functions:
9.1
Search and examination of the applications for the registration of
marks,
geographic
indications and other marks of ownership and the issuance of the
certificates
of registration;
and
9.2
Conduct studies and researches in the field of trademarks in order to
assist
the Director
General in formulating policies on the administration and examination
of
trademarks. (n)
Sec. 10. The Bureau
of Legal Affairs. - The Bureau of
Legal
Affairs shall have the following functions:
10.1. Hear and
decide
opposition to the application for registration of marks; cancellation
of
trademarks; subject to the provisions of Section 64, cancellation of
patents,
utility models, and industrial designs; and petitions for compulsory
licensing
of patents;
10.2. (a) Exercise
original jurisdiction in administrative complaints for violations of
laws
involving intellectual property rights: Provided, That its
jurisdiction
is limited to complaints where the total damages claimed are not less
than
Two hundred thousand pesos (P200,000): Provided, further, That
availment
of the provisional remedies may be granted in accordance with the Rules
of Court. The Director of Legal Affairs shall have the power to hold
and
punish for contempt all those who disregard orders or writs issued in
the
course of the proceedings. (n)
(b) After formal
investigation, the Director for Legal Affairs may impose one (1) or
more
of the following administrative penalties:
(i) The issuance
of a cease and desist order which shall specify the acts that the
respondent
shall cease and desist from and shall require him to submit a
compliance
report within a reasonable time which shall be fixed in the order;
(ii) The
acceptance
of a voluntary assurance of compliance or discontinuance as may be
imposed.
Such voluntary assurance may include one or more of the following:
(1) An
assurance
to comply with the provisions of the intellectual property law violated;
(2) An
assurance
to refrain from engaging in unlawful and unfair acts and practices
subject
of the formal investigation;
(3) An
assurance
to recall, replace, repair, or refund the money value of defective
goods
distributed in commerce; and
(4) An
assurance
to reimburse the complainant the expenses and costs incurred in
prosecuting
the case in the Bureau of Legal Affairs.
The Director
of
Legal Affairs may also require the respondent to submit periodic
compliance
reports and file a bond to guarantee compliance of his undertaking;
(iii) The
condemnation
or seizure of products which are subject of the offense. The goods
seized
hereunder shall be disposed of in such manner as may be deemed
appropriate
by the Director of Legal Affairs, such as by sale, donation to
distressed
local governments or to charitable or relief institutions, exportation,
recycling into other goods, or any combination thereof, under such
guidelines
as he may provide;
(iv) The
forfeiture
of paraphernalia and all real and personal properties which have been
used
in the commission of the offense;
(v) The
imposition
of administrative fines in such amount as deemed reasonable by the
Director
of Legal Affairs, which shall in no case be less than Five thousand
pesos
(P5,000) nor more than One hundred fifty thousand pesos (P150,000). In
addition, an additional fine of not more than One thousand pesos
(P1,000)
shall be imposed for each day of continuing violation;
(vi) The
cancellation
of any permit, license, authority, or registration which may have been
granted by the Office, or the suspension of the validity thereof for
such
period of time as the Director of Legal Affairs may deem reasonable
which
shall not exceed one (1) year;
(vii) The
withholding
of any permit, license, authority, or registration which is being
secured
by the respondent from the Office;
(viii) The
assessment
of damages;
(x) Other
analogous
penalties or sanctions. (Secs. 6, 7, 8, and 9,
Executive
Order No. 913 [1983]a)
10.3. The Director
General may by Regulations establish the procedure to govern the
implementation
of this Section. (n)
Sec. 11. The Documentation,
Information and Technology Transfer Bureau.
- The Documentation, Information and Technology Transfer Bureau shall
have
the following functions:
11.1. Support the
search and examination activities of the Office through the following
activities:
(a) Maintain and
upkeep classification systems whether they be national or international
such as the International Patent Classification (IPC) system;
(b) Provide
advisory
services for the determination of search patterns;
(c) Maintain
search
files and search rooms and reference libraries; and
(d) Adapt and
package
industrial property information.
11.2. Establish
networks or intermediaries or regional representatives;
11.3. Educate the
public and build awareness on intellectual property through the conduct
of seminars and lectures, and other similar activities;
11.4. Establish
working relations with research and development institutions as well as
with local and international intellectual property professional groups
and the like;
11.5 Perform
state-of-the-art
searches;
11.6 Promote the
use of patent information as an effective tool to facilitate the
development
of technology in the country;
11.7. Provide
technical,
advisory, and other services relating to the licensing and promotion of
technology, and carry out an efficient and effective program for
technology
transfer; and
11.8. Register
technology
transfer arrangements, and settle disputes involving technology
transfer
payments. (n)
Sec. 12. The Management
Information Services and EDP Bureau. -
The Management Information Services and EDP Bureau shall:
12.1. Conduct
automation
planning, research and development, testing of systems, contracts with
firms, contracting, purchase and maintenance of equipment, design and
maintenance
of systems, user consultation, and the like; and
12.2. Provide
management
information support and service to the Office. (n)
Sec. 13. The Administrative,
Financial and Human Resource Development Service Bureau. -
13.1. The
Administrative
Service shall:
(a) Provide
services
relative to procurement and allocation of supplies and equipment,
transportation,
messengerial work, cashiering, payment of salaries and other Office's
obligations,
office maintenance, proper safety and security, and other utility
services;
and comply with government regulatory requirements in the areas of
performance
appraisal, compensation and benefits, employment records and reports;
(b) Receive all
applications filed with the Office and collect fees therefor; and
(c) Publish
patent
applications and grants, trademark applications, and registration of
marks,
industrial designs, utility models, geographic indication, and lay-out
designs of integrated circuits registrations.
13.2. The Patent
and Trademark Administration Services shall perform the following
functions
among others:
(a) Maintain
registers
of assignments, mergings, licenses, and bibliographic on patents and
trademarks;
(b) Collect
maintenance
fees, issue certified copies of documents in its custody and perform
similar
other activities; and
(c) Hold in
custody
all the applications filed with the office, and all patent grants,
certificate
of registrations issued by the office, and the like.
13.3. The
Financial
Service shall formulate and manage a financial program to ensure
availability
and proper utilization of funds; provide for an effective monitoring
system
of the financial operations of the Office; and
13.4. The Human
Resource Development Service shall design and implement human resource
development plans and programs for the personnel of the Office; provide
for present and future manpower needs of the organization; maintain
high
morale and favorable employee attitudes towards the organization
through
the continuing design and implementation of employee development
programs.
(n)
Sec. 14. Use of Intellectual
Property Rights Fees by the IPO. -
14.1. For a more
effective and expeditious implementation of this Act, the Director
General
shall be authorized to retain, without need of a separate approval from
any government agency, and subject only to the existing accounting and
auditing rules and regulations, all the fees, fines, royalties and
other
charges, collected by the Office under this Act and the other laws that
the Office will be mandated to administer, for use in its operations,
like
upgrading of its facilities, equipment outlay, human resource
development,
and the acquisition of the appropriate office space, among others, to
improve
the delivery of its services to the public. This amount, which shall be
in addition to the Office's annual budget, shall be deposited and
maintained
in a separate account or fund, which may be used or disbursed directly
by the Director General.
14.2. After five
(5) years from the coming into force of this Act, the Director General
shall, subject to the approval of the Secretary of Trade and Industry,
determine if the fees and charges mentioned in Subsection 14.1 hereof
that
the Office shall collect are sufficient to meet its budgetary
requirements.
If so, it shall retain all the fees and charges it shall collect under
the same conditions indicated in said Subsection 14.1 but shall
forthwith,
cease to receive any funds from the annual budget of the National
Government;
if not, the provisions of said Subsection 14.1 shall continue to apply
until such time when the Director General, subject to the approval of
the
Secretary of Trade and Industry, certifies that the above-stated fees
and
charges the Office shall collect are enough to fund its operations. (n)
Sec. 15. Special
Technical and Scientific Assistance. -
The Director General is empowered to obtain the assistance of
technical,
scientific or other qualified officers and employees of other
departments,
bureaus, offices, agencies and instrumentalities of the Government,
including
corporations owned, controlled or operated by the Government, when
deemed
necessary in the consideration of any matter submitted to the Office
relative
to the enforcement of the provisions of this Act. (Sec.
3,
R. A. No. 165a)
Sec. 16. Seal
of Office. - The Office shall have a
seal,
the form and design of which shall be approved by the Director General.
(Sec.
4, R. A. No. 165a)
Sec. 17. Publication
of Laws and Regulations. - The
Director
General shall cause to be printed and make available for distribution,
pamphlet copies of this Act, other pertinent laws, executive orders and
information circulars relating to matters within the jurisdiction of
the
Office. (Sec. 5, R. A. No. 165a)
Sec. 18. The IPO
Gazette. - All matters required to be
published under this Act shall be published in the Office's own
publication
to be known as the IPO Gazette. (n)
Sec. 19. Disqualification
of Officers and Employees of the Office.
- All officers and employees of the Office shall not apply or act as an
attorney or patent agent of an application for a grant of patent, for
the
registration of a utility model, industrial design or mark nor acquire,
except by hereditary succession, any patent or utility model, design
registration,
or mark or any right, title or interest therein during their employment
and for one (1) year thereafter. (Sec. 77, R. A. No.
165a) |