RFB Reviewer
RFB Reviewer
PROMULGATION)
Republic Act No. 8293, as amended,
“Intellectual Property Code of the Philippines”
January 1, 1998,
Republic Act No. 10372 (amendment)
• PROPERTY
Property—anything that is owned by a person
or entity. Property is divided into two types:
"Real Property"—which is any interest in land,
real estate, growing plants or the improvements
on it, and "personal property" (sometimes
called "personalty") which is everything else.
Modes of acquiring ownership
"Common property"—is ownership by more
✓ Occupation
than
✓ Law
one person of the same possession.
✓ Donation
"Community property"—is a form of joint
✓ Tradition
ownership between husband and wife
✓ Intellectual creation
recognized in several states.
✓ Prescription
"Separate property"—is property owned by one
✓ Succession
spouse only in a community property state, or a
married woman's sole ownership in some
• OWNERSHIP VS. POSSESSION
states.
▪ Ownership is strictly legal.
"Public property,"—refers to ownership by a
▪ Possession is factual.
governmental body such as the federal, state,
▪ The owner may not be in possession of
county or city governments or their agencies
the thing owned.
(e.g. school or redevelopment districts). The
▪ The possessor (person who actually
government, and, in particular, the courts are
occupies) may not be the owner.
obligated to protect property rights and to help
▪ In case of intellectual properties, the
clarify ownership.
“creators” are the owners of the
✓ (as to ownership) All things which are or
intellectual properties and their
may be the object of appropriation are
ownership rights are protected by laws
considered properties.
as patents, copyrights, trademarks etc.
✓ (as to rights) Beneficial rights to a thing is
Buyers of things based on intellectual
property.
properties have ownership rights only
Classifications of properties on the thing bought. The creators do
✓ Immovable (real)—Lands, buildings not lose ownership of the IP by selling
✓ Movable (personal)—Includes rights to their merchandise.
movables • RIGHTS
7 RIGHTS OF AN OWNER UNDER ROMAN LAW
• OWNERSHIP • Jus possidendi – The right to possess
Kinds of ownership • Jus utendi – The right to use
➢ Corporeal • Jus fruendi – The right to the fruits
➢ Incorporeal • Jus abutendi – The right to consume
• Jus disponendi – The right to dispose
The ownership of a material object is corporeal,
• Jus vindicandi – The right to recover
while the possession of a right is incorporeal
• Jus accessiones – The right to accessories
ownership. Corporeal ownership is the
possession of a house, a table, or a machine.
• INTELLECTUAL PROPERTY, DEFINED
Copyright, patent, and trademark ownership are
Intellectual property (IP) refers to creations of
all examples of incorporeal ownership.
the mind, such as inventions; literary and artistic
works; designs; and symbols, names and images
used in commerce.
IP is protected in law by, for example, patents,
copyright and trademarks, which enable people
to earn recognition or financial benefit from
what they invent or create. By striking the right
balance between the interests of innovators and
the wider public interest, the IP system aims to g) Protection of Undisclosed Information (n,
foster an environment in which creativity and TRIPS).
innovation can flourish. (WIPO)
4.2. The term "technology transfer arrangements" refers
to contracts or agreements involving the transfer of
• PURPOSE OF IP; DECLARATION OF STATE
systematic knowledge for the manufacture of a product,
POLICIES (SECTION 2, IP CODE)
the application of a process, or rendering of a service
Section 2. Declaration of State Policy. - The State including management contracts; and the transfer,
recognizes that an effective intellectual and industrial assignment or licensing of all forms of intellectual
property system is vital to the development of domestic property rights, including licensing of computer
and creative activity, facilitates transfer of technology, software except computer software developed for mass
attracts foreign investments, and ensures market access market.
for our products. It shall protect and secure the
4.3. The term "Office" refers to the Intellectual Property
exclusive rights of scientists, inventors, artists and other
Office created by this Act.
gifted citizens to their intellectual property and
creations, particularly when beneficial to the people, for 4.4. The term "IPO Gazette" refers to the gazette
such periods as provided in this Act. The use of published by the Office under this Act. (n)
intellectual property bears a social function. To this end,
• PHILIPPINE POLICY ON “RECIPROCITY”
the State shall promote the diffusion of knowledge and
(SECTION 3, IP CODE)
information for the promotion of national development
and progress and the common good. It is also the policy Section 3. International Conventions and Reciprocity. -
of the State to streamline administrative procedures of Any person who is a national or who is domiciled or has
registering patents, trademarks and copyright, to a real and effective industrial establishment in a country
liberalize the registration on the transfer of technology, which is a party to any convention, treaty or agreement
and to enhance the enforcement of intellectual relating to intellectual property rights or the repression
property rights in the Philippines. (n) of unfair competition, to which the Philippines is also a
party, or extends reciprocal rights to nationals of the
• INTELLECTUAL PROPERTY VS INTELLECTUAL
Philippines by law, shall be entitled to benefits to the
PROPERTY RIGHTS
extent necessary to give effect to any provision of such
▪ Intellectual property (IP) refers to
convention, treaty or reciprocal law, in addition to the
‘Creations of the Mind’, such as works of
rights to which any owner of an intellectual property
art, designs, logos, inventions, Computer
right is otherwise entitled by this Act. (n)
programs, database, literary works,
recordings, brands etc. • MODES OF ACQUIRING OWNERSHIP
▪ Intellectual Property Rights are generally ✓ OCCUPATION
granted or protected under the law to ✓ LAW
create a sustainable eco-system which ✓ DONATION
promotes innovation and such rights are ✓ TRADITION
given to owners of IP or creators over the ✓ INTELLECTUAL CREATION
creations of their mind, which would also ✓ PRESCRIPTION
act as a catalyst for further creation of IP ✓ SUCCESSION
that would also act as a catalyst for further
creation of IP that would ultimately benefit • CATEGORIES OF IP, DEFINED
the economy. It is an exclusive right over the ▪ COPYRIGHT
use of his/her creation for a certain period ▪ MARKS
of time and some depending on payment ▪ PATENTS
for maintaining the IP right, after which they
fall in the public domain to be used for
further creative endeavors. Hence, owners • TANGIBLE ASSETS
or creators get benefits as well as control • INTANGIBLE ASSETS
over the exploitation of their creation. Ownership: Tangible property and Intangible
Section 4. Definitions. - 4.1. The term "intellectual property
property rights" consists of: In today’s world, business succeeds and flourish
when both tangible assets and intangible assets
a) Copyright and Related Rights; play a substantial role.
b) Trademarks and Service Marks; - Tangible assets are also known as Physical
c) Geographic Indications; assets which includes capital, equipment,
d) Industrial Designs; securities, machinery, infrastructure like
e) Patents; land and building and other commercial
f) Layout-Designs (Topographies) of Integrated assets.
Circuits; and
- Intangible assets which include ideas, specifically mentions that software and
knowledge, creative innovations, designs, databases are protected by copyright, subject to
patents, copyrights, brand equity and hence originality requirement (Art 10).
collectively it forms intellectual capital of
the company. Article 10 of the Agreement stipulates:
Computer programs, whether in source or object code,
Article 414. All things which are or may be the object of
shall be protected as literary works under the Berne
appropriation are considered either:
Convention (1971).
1. Immovable or real property; or Compilations of data or other material, whether in
2. Movable or personal property. (333) machine readable or other form, which by reason of the
selection or arrangement of their contents constitute
• TRIPS (GENERAL IDEAS ONLY) intellectual creations shall be protected as such. Such
protection, which shall not extend to the data or
Agreement on Trade-Related Aspects of Intellectual
material itself, shall be without prejudice to any
Property Rights (TRIPS Agreement)
copyright subsisting in the data or material itself.
TRIPS requires member states to provide strong
protection for intellectual property rights.
• CREATIVE COMMONS
For example, under TRIPS:
• Copyright terms must extend at least 50 years,
unless based on the life of the author. (Art. 12
and 14)
• Copyright must be granted automatically, and
not based upon any "formality", such as
registrations, as specified in the Berne
Convention. (Art. 9)
• Computer programs must be regarded as
"literary works" under copyright law and receive
the same terms of protection.
• National exceptions to copyright (such as "fair
use" in the United States) are constrained by
the Berne three-step test.
• Patents must be granted for "inventions" in all
"fields of technology" provided they meet all
other patentability requirements (although
exceptions for certain public interests are
allowed (Art. 27.2 and 27.3)[9]) and must be
enforceable for at least 20 years (Art 33).
• Exceptions to exclusive rights must be limited,
provided that a normal exploitation of the work
(Art. 13) and normal exploitation of the patent
(Art 30) is not in conflict.
• No unreasonable prejudice to the legitimate
interests of the right holders of computer
programs and patents is allowed.
• Legitimate interests of third parties have to be
taken into account by patent rights (Art 30).
• In each state, intellectual property laws may not
offer any benefits to local citizens which are not
available to citizens of other TRIPS signatories
under the principle of national treatment (with
certain limited exceptions, Art. 3 and 5).[10]
TRIPS also has a most favored nation clause.
• The TRIPS Agreement incorporates by reference
the provisions on copyright from the Berne
Convention for the Protection of Literary and
Artistic Works (Art 9), with the exception of
moral rights. It also incorporated by reference
the substantive provisions of the Paris
Convention for the Protection of Industrial
Property (Art 2.1). The TRIPS Agreement
• COPYRIGHT
ORIGINAL WORKS
Section 172. Literary and Artistic Works. - 172.1.
Literary and artistic works, hereinafter referred to as
"works", are original intellectual creations in the literary
and artistic domain protected from the moment of their
creation and shall include in particular:
(a) Books, pamphlets, articles and other writings;
(b) Periodicals and newspapers;
(c) Lectures, sermons, addresses, dissertations prepared
for oral delivery, whether or not reduced in writing or
other material form;
(d) Letters;
(e) Dramatic or dramatico-musical compositions;
choreographic works or entertainment in dumb shows;
(f) Musical compositions, with or without words;
(g) Works of drawing, painting, architecture, sculpture,
engraving, lithography or other works of art; models or
designs for works of art;
(h) Original ornamental designs or models for articles of
manufacture, whether or not registrable as an industrial
design, and other works of applied art;
(i) Illustrations, maps, plans, sketches, charts and three-
dimensional works relative to geography, topography,
architecture or science;
(j) Drawings or plastic works of a scientific or technical
character;
(k) Photographic works including works produced by a WORKS NOT PROTECTED (by copyright)
process analogous to photography; lantern slides; CHAPTER IV
(l) Audiovisual works and cinematographic works and WORKS NOT PROTECTED
works produced by a process analogous to Section 175. Unprotected Subject Matter. -
cinematography or any process for making audio-visual Notwithstanding the provisions of Sections 172 and 173,
recordings; no protection shall extend, under this law, to any idea,
(m) Pictorial illustrations and advertisements; procedure, system, method or operation, concept,
(n) Computer programs; and principle, discovery or mere data as such, even if they
(o) Other literary, scholarly, scientific and artistic works. are expressed, explained, illustrated or embodied in a
work; news of the day and other miscellaneous facts
172.2. Works are protected by the sole fact of their having the character of mere items of press information;
creation, irrespective of their mode or form of or any official text of a legislative, administrative or legal
expression, as well as of their content, quality and nature, as well as any official translation thereof (n)
purpose. (Sec. 2, P.D. No. 49a) Section 176. Works of the Government. - 176.1. No
copyright shall subsist in any work of the Government of
DERIVATIVE WORKS the Philippines. However, prior approval of the
Section 173. Derivative Works. - 173.1. The following government agency or office wherein the work is
derivative works shall also be protected by copyright: created shall be necessary for exploitation of such work
(a) Dramatizations, translations, adaptations, for profit. Such agency or office may, among other
abridgments, arrangements, and other things, impose as a condition the payment of royalties.
alterations of literary or artistic works; and No prior approval or conditions shall be required for the
(b) Collections of literary, scholarly or artistic works, and use of any purpose of statutes, rules and regulations,
compilations of data and other materials which are and speeches, lectures, sermons, addresses, and
original by reason of the selection or coordination or dissertations, pronounced, read or rendered in courts of
arrangement of their contents. (Sec. 2, [P] and [Q], P.D. justice, before administrative agencies, in deliberative
No. 49) assemblies and in meetings of public character. (Sec. 9,
173.2. The works referred to in paragraphs (a) and (b) of first par., P.D. No. 49)
Subsection 173.1 shall be protected as new works: 176.2. The author of speeches, lectures, sermons,
Provided however, That such new work shall not affect addresses, and dissertations mentioned in the
the force of any subsisting copyright upon the original preceding paragraphs shall have the exclusive right of
works employed or any part thereof, or be construed to making a collection of his works. (n)
imply any right to such use of the original works, or to 176.3. Notwithstanding the foregoing provisions, the
secure or extend copyright in such original works. (Sec. Government is not precluded from receiving and
8, P.D. 49; Art. 10, TRIPS) holding copyrights transferred to it by assignment,
bequest or otherwise; nor shall publication or
Section 174. Published Edition of Work. - In addition to republication by the Government in a public document
the right to publish granted by the author, his heirs, or of any work in which copyright is subsisting be taken to
assigns, the publisher shall have a copyright consisting cause any abridgment or annulment of the copyright or
merely of the right of reproduction of the typographical to authorize any use or appropriation of such work
arrangement of the published edition of the work. (n) without the consent of the copyright owner. (Sec. 9,
third par., P.D. No. 49)
• WORKS NOT PROTECTED BY COPYRIGHT
Non-copyrightable •RIGHTS ASSOCIATED WITH COPYRIGHT
Certain works are not eligible for copyright (ECONOMIC AND MORAL RIGHTS; BERNE
protection under Philippine law, primarily because they CONVENTION)
lack originality, are too factual, or are intended for ECONOMIC AND MORAL RIGHTS OF AUTHORS
public use without restriction. These include: ✓ Economic Rights: These include the rights to
- Ideas, Procedures, and Systems: Abstract reproduce the work, distribute copies, perform
ideas, methods, procedures, processes, or display the work publicly, and make
systems, discoveries, or concepts are not derivative works. These are often transferable
protected. and assignable, and they can be licensed to
- Official Government Works: This includes others.
statutes, regulations, court decisions, ✓ Moral Rights: Authors retain moral rights to
speeches delivered in public hearings, and claim authorship, make modifications, prevent
other public documents. any derogatory action against the work, and
- Public Domain: Works that have entered the control its future uses in a way that might harm
public domain due to the expiration of their honor or reputation. Moral rights are non-
copyright or because the copyright owner transferable and last during the author’s lifetime
has waived rights. and up to fifty (50) years post-mortem.
COPYRIGHT OR ECONOMIC RIGHTS • COPYRIGHT INFRINGEMENT
CHAPTER V INFRINGEMENT
COPYRIGHT OR ECONOMIC RIGHTS ▪ Copyright infringement occurs when a
Section 177. Copyright or Economic Rights. - Subject to copyrighted work is reproduced, distributed,
the provisions of Chapter VIII, copyright or economic performed, publicly displayed, or made into a
rights shall consist of the exclusive right to carry out, derivative work without the permission of the
authorize or prevent the following acts: copyright owner. (RA 8293)
177.1. Reproduction of the work or substantial portion Civil Liabilities:
of the work; - Injunction: The copyright owner can seek an
177.2. Dramatization, translation, adaptation, injunction to prevent further infringement.
abridgment, arrangement or other transformation of - Damages: The infringer can be held liable for
the work; actual damages, including lost profits, or
177.3. The first public distribution of the original and statutory damages as prescribed by law.
each copy of the work by sale or other forms of transfer - Account of Profits: The copyright owner may
of ownership; claim any profits made by the infringer as a
177.4. Rental of the original or a copy of an audiovisual result of the infringement.
or cinematographic work, a work embodied in a sound Criminal Liabilities:
recording, a computer program, a compilation of data - Imprisonment and Fines: Infringement of
and other materials or a musical work in graphic form, copyright can lead to imprisonment of one to
irrespective of the ownership of the original or the copy three years and fines ranging from fifty
which is the subject of the rental; (n) thousand pesos (PHP 50,000) to one hundred
177.5. Public display of the original or a copy of the fifty thousand pesos (PHP 150,000), depending
work; on the severity and nature of the infringement.
177.6. Public performance of the work; and - Enhanced Penalties: Repeat offenders or those
177.7. Other communication to the public of the work. infringing on works with commercial value may
(Sec. 5, P. D. No. 49a) face harsher penalties.
Administrative Penalties:
MORAL RIGHTS - The Intellectual Property Office (IPO) of the
CHAPTER X Philippines may impose administrative
MORAL RIGHTS sanctions, including fines and the issuance of
Section 193. Scope of Moral Rights. - The author of a cease and desist orders.
work shall, independently of the economic rights in
Section 177 or the grant of an assignment or license • REMEDIES AVAILABLE TO COPYRIGHT OWNERS
with respect to such right, have the right: AGAINST INFRINGEMENT
193.1. To require that the authorship of the works be
Remedies for Infringement
attributed to him, in particular, the right that his name,
CHAPTER XVII
as far as practicable, be indicated in a prominent way on
INFRINGEMENT
the copies, and in connection with the public use of his
Section 216. Remedies for Infringement. - 216.1. Any
work;
person infringing a right protected under this law shall
193.2. To make any alterations of his work prior to, or to
be liable:
withhold it from publication;
(a) To an injunction restraining such infringement. The
193.3. To object to any distortion, mutilation or other
court may also order the defendant to desist from an
modification of, or other derogatory action in relation
infringement, among others, to prevent the entry into
to, his work which would be prejudicial to his honor or
the channels of commerce of imported goods that
reputation; and
involve an infringement, immediately after customs
193.4. To restrain the use of his name with respect to
clearance of such goods.
any work not of his own creation or in a distorted
(b) Pay to the copyright proprietor or his assigns or heirs
version of his work. (Sec. 34, P.D. No. 49)
such actual damages, including legal costs and other
Section 194. Breach of Contract. - An author cannot be
expenses, as he may have incurred due to the
compelled to perform his contract to create a work or
infringement as well as the profits the infringer may
for the publication of his work already in existence.
have made due to such infringement, and in proving
However, he may be held liable for damages for breach
profits the plaintiff shall be required to prove sales only
of such contract. (Sec. 35, P.D. No. 49)
and the defendant shall be required to prove every
element of cost which he claims, or, in lieu of actual
• TERM OF COPYRIGHT (YEARS OF PROTECTION)
damages and profits, such damages which to the court
shall appear to be just and shall not be regarded as
penalty.
(c) Deliver under oath, for impounding during the
pendency of the action, upon such terms and conditions
as the court may prescribe, sales invoices and other
documents evidencing sales, all articles and their
packaging alleged to infringe a copyright and
implements for making them.
(d) Deliver under oath for destruction without any
compensation all infringing copies or devices, as well as
all plates, molds, or other means for making such
infringing copies as the court may order.
(e) Such other terms and conditions, including the
payment of moral and exemplary damages, which the
court may deem proper, wise and equitable and the
destruction of infringing copies of the work even in the
event of acquittal in a criminal case.
216.2. In an infringement action, the court shall also
have the power to order the seizure and impounding of
any article which may serve as evidence in the court
proceedings. (Sec. 28, P.D. No. 49a)
• BERNE CONVENTION FOR THE PROTECTION OF
THE LITERARY AND ARTISTIC WORKS
Enforcement of copyright
• Judicial Actions: Copyright owners can file a The Berne Convention, adopted in 1886, deals
complaint in court to seek judicial remedies with the protection of works and the rights of their
such as injunctions, damages, and the seizure of authors. It provides creators such as authors, musicians,
infringing materials. poets, painters etc. with the means to control how their
• Customs Enforcement: The Bureau of Customs works are used, by whom, and on what terms. It is
can detain and seize imported goods suspected based on three basic principles and contains a series of
of infringing on copyright. provisions determining the minimum protection to be
• Digital Millennium Copyright Act (DMCA): The granted, as well as special provisions available to
DMCA provisions applicable in the Philippines developing countries that want to make use of them.
provide a mechanism for copyright owners to (WIPO)
request the removal of infringing content
online. (Safe Harbor; United State The three basic principles are the following:
• (a) Works originating in one of the Contracting
• CREATIVE COMMONS States (that is, works the author of which is a
Creative Commons (CC) license national of such a State or works first published
A Creative Commons (CC) license is one of in such a State) must be given the same
several public copyright licenses that enable the free protection in each of the other Contracting
distribution of an otherwise copyrighted "work". A CC States as the latter grants to the works of its
license is used when an author wants to give other own nationals (principle of "national
people the right to share, use, and build upon a work treatment") [1].
that the author has created. CC provides an author • (b) Protection must not be conditional upon
flexibility (for example, they might choose to allow only compliance with any formality (principle of
non-commercial uses of a given work) and protects the "automatic" protection) [2].
people who use or redistribute an author's work from • (c) Protection is independent of the existence of
concerns of copyright infringement as long as they protection in the country of origin of the work
abide by the conditions that are specified in the license (principle of "independence" of protection). If,
by which the author distributes the work. however, a Contracting State provides for a
longer term of protection than the minimum
prescribed by the Convention and the work
ceases to be protected in the country of origin,
protection may be denied once protection in
the country of origin ceases [3].
• INFRINGEMENT, NATURE OF
• CIVIL
• CRIMINAL
• ADMINISTRATIVE
• ENFORCEMENT OF COPYRIGHT
Enforcement of copyright