ChanRobles Virtual law Library
PHILIPPINE LAWS, STATUTES & CODES
A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
Search for
www.chanrobles.com
:
LETTER OF INSTRUCTIONS
PLEASE CLICK HERE FOR THE LATEST ➔ PHILIPPINE LAWS, STATUTES & CODES
|
|
|
|
|
LETTER OF INSTRUCTIONS NO. 678 |
Department of Trade
The Chairman
Board of Investments
The Governor
Central Bank of the Philippines
The Director-General
National Economic and Development Authority
The Executive Director
Technology Resource Center
WHEREAS, Presidential Decree No. 1263 amending portions of R.A. 165, otherwise known as the Patent Law, which was promulgated and became effective January 14, 1978 vested upon the Technology Resource Center the power to approve and register voluntary license contracts;
WHEREAS, P.D. No. 1263 is meant to amend the Patent Law and understandably refers to matters involving patents;
WHEREAS, there are at present studios currently being undertaken for a more wholistic approach in the field of transfer of technology;
WHEREAS, pending such overall approach, it seems essential to delineate the proper scope in the implementation of P.D. No. 1263;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and direct the following measures for the implementation of Presidential Decree No. 1263:
1.
The Technology Resource Center shall limit its evaluation of voluntary
licensing agreements to those license contracts, agreements, letters of
understanding, renewals thereof or any side letters, pertaining to the
remittance of royalty for the use of patents registered with the
Philippine Patent Office, including secret formulae, process, technical
know-how and the like pertaining to such patents, which are entered
into between residents and non-residents;
2. For the
purpose of P.D. No. 1263, the following definitions shall be adopted:
a.
"Transfer of Technology" shall refer to the actual inflow from foreign
sources of technical know-how, in the form of designs, formulae,
blueprints, etc., which are patented in the Philippine Patent Office,
including secret formulae, processes and the like pertaining to such
patents.
b. "Service
respecting patents" shall refer to technical, marketing, engineering
and such other forms of assistance rendered by a foreign firm in
connection with the Philippine patented technology it has licensed a
resident firm to utilize.
c. "Royalty"
shall refer to payments in the form of foreign currency which are
remitted abroad as compensation for the use of patents or related
technical know-how and/or services made available by a non-resident,
computation of which is based on the net wholesale price of the
articles manufactured or value of services rendered.
d. "Licensor"
shall refer to the foreign firm who is supplying the technology and/or
services which are covered by Philippine patents.
e. "Licensee"
shall refer to the resident firm who will avail of the patented
technology and/or services related to such patented technology.
f. "Residents"
shall refer to:
(i) Citizens
of the Philippines, who are not permanent residents of other countries.
(ii)
Associations, partnerships, or corporations including subsidiaries of
foreign firms organized under Philippine law.
(iii) Aliens
and branches duly licensed to engage in trade or business in the
Philippines.
g.
"Non-residents" shall refer to all persons, whether natural or
juridical, who do not fall under definition of "residents".
4. Any person whether natural or juridical, resident or non-resident, who is a party to a contract or the assignee thereof may file an application with the TRC for the approval and registration of such contract.
5. All existing voluntary licensing agreements involving patents, know-how and service relating to patents registered with the Central Bank of the Philippines and/or the Board of Investments shall remain valid and subsisting. Any renewals thereof which would relate to registered Philippine patent shall however be registered with the TRC.
6. TRC in processing, evaluation and registration of contracts shall not divulge any technological information concerning the process or products covered by the contracts. This provision shall not include information which is in the public domain pursuant to other laws or regulations.
7. Provisions of Central Bank Circular No. 393 pertaining to remittances of royalties on voluntary transfer of technology arrangements shall remain valid and subsisting. However, with reference to the new voluntary licensing agreements involving patents, said contracts shall previously be registered with TRC.
Done in the City of Manila, this 8th day of March, in the year of Our Lord, nineteen hundred and seventy-eight.
chanrobles virtual law library
Back to Main
Since 19.07.98.
