PART
2 REGISTRATION
OF EXEMPT TECHNOLOGY TRANSFER ARRANGEMENTS
Rule 4. Application
for exemption. A sworn application for exemption from any of
the Prohibited Clauses and/or Mandatory Provisions of the IP Code may
be
filed with the Director stating the exemption/s being requested,
the justification for the exemption/s, and that the agreement is
not subject of any judicial, administrative or other proceeding.
The application
must be accompanied by a copy of the agreement, payment of the
appropriate
fee/s, and other documents that may be required by the Bureau to
support
and establish the merits of the request.
The applicant
may submit either a draft or a duly executed and notarized
agreement.
Rule 5. Who
may
file. Any party to a technology transfer arrangement or his
duly
authorized representative may file an application for exemption with
the
Director.
Rule 6. When
to file. The application shall be filed in accordance with
the
following schedule:
(a)
New Agreements
- within thirty (30) days
from
the date of execution or
effectivity,
whichever is earlier;
(b)
Renewal
Agreements - anytime prior to the expiration of
the term of the existing technology
transfer agreement; and
(c)
Amendatory
Agreements - within thirty (30) days from
the date of effectivity of such amendment or
modification.
Rule 7. Filing
date. The date on which the applicant complies with the
requirements of the Bureau is the Filing Date which shall be duly
recorded in the Filing Date Entry Book. The Bureau shall issue to
the applicant a Notice of Filing Date which is also
the
date when evaluation of the request
shall
commence.
Rule 8.
Notice of additional requirements. Should
the Bureau find that the documents submitted are incomplete
or insufficient, the Bureau shall issue a
notice
to the applicant, within six (6)
days
from the Filing Date, requiring the
applicant
to submit the additional documents.
Failure
of the applicant to comply with
any
of the requirements within a period
of fifteen (15) days from the date
of receipt of the notice shall be
construed
as an abandonment of the application
without
prejudice to refiling as a new application. Should the
applicant
require additional time to comply with
the
requirements, a final extension of
fifteen
(15) days will be granted upon
payment
of the required fee.
Rule 9. Scope
of evaluation. Requests for exemption shall be evaluated based on
the
adverse effects of the terms and conditions of the technology
transfer
arrangement on competition and trade. Exemption from
the Prohibited Clauses and Mandatory Provisions of the IP Code will be
granted in exceptional or meritorious cases where
substantial
benefits will accrue to the economy, such as:
(a)
high technology
content;
(b)
increase
in foreign exchange earnings;
(c)
employment
generation;
(d)
regional
dispersal of industries;
(e)
substitution
with or use of local raw
materials;
(f)
pioneer status
registration with the Board of Investments.
Rule 10.
Acceptable
worldwide industry standards and practices. As part of the
evaluation
procedure for requests for exemptions, the Bureau shall take into
account
acceptable worldwide industry standards and practices for licensing
technology
in the relevant sectors.
Rule
11. Recognition of valid intellectual property rights. In
the assessment of requests for exemptions involving clauses which
restrict
the use of the technology supplied after the expiration of the
technology
transfer arrangement under Section 87.9 of the IP Code, the Bureau
shall
take into consideration the protection of valid patent, copyright,
trademark,
trade secret or other intellectual property rights subsisting even
after
the termination or expiration of the technology transfer
arrangement.
Rule 12.
Payment
of taxes. In the evaluation of requests for exemption
involving
provisions which do not require the licensor to pay Philippine taxes on
all payments relating to the technology transfer arrangement under
section
88.4 of the IP Code [Rule 3 (4) of these Regulations], the Bureau shall
take into consideration current laws, rules and regulations issued by
the
Bureau of Internal Revenue regarding the liability for payment of
such taxes.
Rule
13. Decision. The Bureau shall decide whether or
not
to grant the application within thirty-five (35) days from the Filing
Date.
Rule 14.
Issuance
of certificate. The Bureau shall issue
the
Certificate of Registration within two
(2)
days from approval of the application.
If a
draft agreement was submitted for evaluation,
the
Certificate of Registration shall be issued two (2) days
after
the submission of the duly executed
agreement provided it shall not contain
any
amendment or any modification not authorized by
the
Bureau.
Rule 15.
Certificate
registry book. After the
issuance
of the Certificate of Registration,
the
title of the technology transfer
arrangement
and parties thereto, its registration
number
and the date of registration shall
be entered in the Certificate Registry
Book.
Rule 16.
Cancellation of registration. Automatic
cancellation
of registration shall be made upon
receipt
of a duplicate original or certified copy
of
the registered technology transfer arrangement
containing
amendments or modifications that violate the
Prohibited
Clauses and Mandatory Provisions of the IP Code without approval of the
Bureau.
The Bureau may
also cancel the registration of the
technology transfer arrangement if, after evaluation,
the Bureau has established that the justification for the grant of an
exemption
submitted by the applicant does not exist or has ceased to exist.
Such action will be made only after the parties in whose names the
Certificate
of Registration was issued are given an opportunity to be heard.
In both cases, the
parties shall be required to surrender the Certificate of
Registration
provided that the surrender of the Certificate shall not be a
pre-requisite
to the cancellation of the registration.
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