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ReSA 813 Cor. R. Papa and S Loyola Sts Sampaloc,

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The Review School of Accountancy *735-9807 / 734-3989 resareview@hotmail.com/ (0910) 439-1320

Framework for Atty. R. Rosales • Atty. J. Domingo auciness Transactions (RFBT) Atty. N.
Valderrama

RFBT-IO: INTELLECTUAL PROPERTY CODE

F:ffecovlty: January I, 1998 Giagnostic methods practiced on the human or
Intellectual property: animai body
1. Copyright and related rights
2. Trademark and service marks
3. Patents
4. Geographical indications
5. Layout designs (topographies) . of integrated
circuits
6. Protection of undisclosed information
7. Industrial designs: any composition of lines or
colors any three-dimensional form, whether or
not associated with lines or colors, provided that
such composition or form gives a special
appearance to and can serve as pattern for an
industrial product or handicraft

Technology transfer arrangements: contracts or

agreements involving the transfer of systematic
knowledge for the manufacture of a product, the
application of a process, rendering of a service including
management contracts; and the transfer, assignment of
licensing of all forms of intellectual property rights,
including licensing of computer software except
computer software developed for mass market
Requisites:
I. A technical solution of a problem in any field of
human activity
2. It must be a novel invention
3. Industrially applicable (can be produced and
used in any industry)

Classes of patentable inventions:

1. Useful machine
2 Product
3. Process
4. Improvement of (I), (2) or (3)
5. Micro-organism
6. Non-biological and microbiological process
Non-patentable inventions:
l . Discoveries, scientific theories and mathematical
method
2. Schemes, rules and methods of performing
mental acts, playing games or doing
business and programs for computers
Methods for treatment of the human body or
animal body by surgery or therapy and
ReSA — The Review School of Accountancy
Co ri ht Patent Trademark

Literary, New,
Subject useful and
scientific Goods
matter industrially
or manufactured
of the applicable
artistic or produced
right inventions
work
Where
right is to National
IPO IPO
be re Library
istered
Generally 20 years 10 years
50 years from the from
Duration of after filing date issuance of
right death of of the a certificate of
lication re istration
the
author
biological process for the production of plants
or antmals
S. Aesthetic creations
6. Anything which is contrary to public order or
morality
7. In the case of drugs and medicines:
a. Mere discovery of a new form or new
property of a known substance which
does not result in the enhancement of
the known efficacy of that substance
b. Mere discovery of any new property or
new use for a known substance
c. Mere use of a known process unless
such known process results in a new
product that employs at least one new
reactant
4. Plant varieties or animal breeds of essentially
International Conventions and Reciprocity (Section 3 of Noveltv (Section 23 of RA8293): An invention shall not
RA8293): Any person who is national or who is domiciled be considered new if it forms part of a prior art.
or has a real and effective industrial establishment in a
Prior Art •
country which is a party to any convention, treaty, or
agreement relating intellectual property rights or the 1. Everything which has been made available to the
repression of unfair competition, to which the Philippines public anywhere in the world, before the filing
is also a party, or extends reciprocal rights to nationals of date or the priority date of the application
the Philippines by law, shall be entitled to benefits to the claiming the invention; and
extent necessary to give effect to any provision of such 2. The whole contents of an application for a patent,
convention, treaty, or reciprocal law, in addition to the utility model, or industrial design registration,
rights to which any owner of an intellectual property right published in accordance with law, flied or effective
is otherwise entitled under the law. in the Philippines, which a filing or priority date
that is earlier than the filing or priority date of the
application
Patentable Inventions: any technical solution of a
Non-prejudicial Disclosure: The disclosure of
problem in any field of human activity which is
information contained In the application during the 12
new, involves an inventive step and is industrially months preceding the filing date or the priority date of
applicable; may be or may relate to, a product, a the application shall not prejudice the applicant on the
process, or an Improvement of any of the ground of novelty if such disclosure was made by:
foregoing 1. The inventor;

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2. A patent office and the informal.on was 3. Drawings necessary for the understandirtg of
contained (a) in another application filed bv the' the invention;
inventor and should not have been disc:osed by 4. One or more claims (define the matter {or which
the office, or (b) in an application filed without protection is sought; clear and concise); and
the knowledge or of the inventor by a third 5. An abstract (concise summary of the disc.iosure
party wh;c.i? obtained the information directly of the invention as contained in the description,
or indirectly fro.•n the inventor; or claims, and drawings in preferably not more
3. The third party which obtained the :nformdtictl than ISO words)
directly or indirectly from the inventcr.

Inventive Step: if having regard to prior art, it not.

obvious to a person skilled in the art at the time oi the

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filing date or priority date of the application claimlng the
invention

Right to a patent: belongs to the inventor, his beers or

assigns; when 2 or more persons have '1010tIy rnacie an
invention, said right Shali belong to tnem jointly Note: Inventor must always be identified. Any
authorized person may file an application for the
First-to-File Rule: If two or more persons have made
inventor. Before publication, no application may
the invention separately and independently ot each
inspected without the consent of the applicant.
other the right to the patent shall belong to the person
who first filed an application for such invention. Unity of Invention: An application shall relate to one
Inventions created pursuant to a commission: invention only or to a group of inventions forming a
1. The person who commissions the work shail singie general inventive concept. Note: Violation is not
own the patent, unless otherwise. provided a ground to cancel the patent.
the contract.
Publication of Patent Application:
2. In case the employee rrtade the inverj.icn in I. The application shall be published in the IPO
Gazette together with a search document
the course of his employment ant-rac..t, the (determining a prior art) after the expiration of
patent shall belong to: 18 months from the filing date or priority date.
a. The employee, if the inventive is 2. After publication, any interested party may inspect
not part of his regular duties even if the the application documents.
employee uses the time, facilities 3 The Director General, subject to the approval of
and materials of the employer DTI Secretary, may prohibit or restnct the
b. The employer, if the invention is a result publication of an application, if in his opinion,
of the performance of his regularly- to do so would be prejudicial to the national
assigned duties, un!ess tilere is an security and interests of the Republic of the
agreement: express or implied, to the Philippines.
contrary 4. After publication, the applicant shall have all the
rights of a patentee against any person who,
Right of Priority: An application for patent fileci any person without authorization, exercised any of the.
who has previously apphed for the serne invention in another rights conferred under the law in relation to
country which by treaty, convention or law affords similar the invention claimed in the published
privileges to Filipino citizens, shall be considered as rued as of application, as if a patent had been granted for
the date of filing the foreign application: provided that: that invention, provided that said person had:
I . A local application expressly c!aims priority a. Actual knowledge that the invention
2. It is filed within 12 months from die. date tne that he was using was the subject
earliest foreign application was filed matter of a published application; or
3. A certified copy of the foreign appacation b. Received written notice that the
together with an English trans!ation is filed
within 6 months from the date of in '-he invention he was using was the subject
Philippines matter of a published application being
identified in the said notice by its serial
Priority Date: the date of filing of the foreign application number. (Note: No action may be filed
for the same invention however until the grant of a patent and
only within 4 years from commission of
Contents of Patent Application (in Filipino or English):
the acts complained of.)
1. A request for the grant of a patent;
2. A description of the invention clear and Substantive Examination: Within 6 months from date of
complete for it to be carried by person skilled in publication, a written request for examination must be
the art); submitted and fees must be paid; otherwise, the

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application shall be deemed withdrawn. Any 2. Where the subject matter of a patent is a
withdrawal of Che request for examination shall be process, to restrain, prevent or prohibit any
irrevocable and shall not authorize the refund of any unauthorized person or entity from using the process
fee. and from manufacturing, dealing in, using, selling or
offering for sale, or importing any product obtained
G ratit of Patent: directly or indirectly from such process
If the application meets the requirements, IPO Patent owners shall also have the right to assign,
shall grant the patent, provided all fees are or transfer by succession the patent and to
paid on time. conclude licensing contracts for the same.
2. If fees are not paid in due time, the application Limitation of patent rights: The owner of a patent has
shall be deemed to be withdrawn. no right to prevent third parties from performing,
3. Effectivity: on the date of the publication without his authorization, the acts within his ri9hts in
of the patent in the IPO Gazette. the following circumstances:
4. In case of refusal, the final order shall be I . Using a patented product which has been put on
appealable to the Director. the market in the Philippines by the owner of
the product, or with express consent, in so far
Grounds for cancellation of a patent: as such use is performed after the product has
L iVhat is claimed as the invention IS not new or been so put on the said market
patentable 2. Where the act is done privately and on a
2 The patent does not disclose the invention in a noncommercial scale or for a non-cornmerclal
rnanner sufficiently clear and complete for it to purpose, provided, that it does not significantly
be carried out by any person skilled in the art prejudice the econömic interests of the owner
of the patent
3 i he patent is contrary to public order or
morality 3. Where the act consists of making or using
exclusively for the purpose of experiments that
Committee of Three: composed of the Director of Legal relate to the subject matter of the patented
Affairs as chairman and 2 members who have the invention
experience or expertise in the field of technology to 4. Where the act consists of the preparation for
which the patent sought to be cancelled relates, in individual cases, in a pharmacy or by a medical
professional in accordance with a medical
cases involving highly technical issues; decision prescription or acts concerning the medicine so
shall be appealable to the Director General prepared
5. Where the invention is used in any ship, vessel,
Effect of Cancellation of Patent: aircraft or land vehicle of any other country
1. Notice of cancellation shall be entering the territory Of the Philippines
published In IPO Gazette. temporarily or accidentally, provided, that such
invention is used exclusively for the needs of
the ship, vessel, aircraft. or land vehicle and
2. Rights conferred shall terminate. not used for the manufacturing of anything to
3. Unless restrained by the Director General, be sold within the Philippines
the decision shall be immediately executory
even pending appeal.
Remedies of the true and actual inventor: If a person, who

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was deprived of the patent without his consent or through
fraud is declared by final court order or to be the
true and actual inventor, the court order for his
substitution as patentee, or at option of the true
inventor, cancel the patent award actual and other Prior User: Any prior user, who, in good faith was the
damages in his favor If warranted by the circumstances. invent ion or has undertaken oertotJ% preparations to
the invention in hi" enterprise or business, before. the
Note. This may be availed within one year from the filing date or priority date of the application on which a
date of publication patent granted, shall have the right to continuc thc use
thereof as envisaged tn such preparations within the
Rights conferred by a grant: A patent shall confer territory where the patent produces its effect. The right
on its owner the following exclusive rights: of the prior user may only be transferred or assigned
I. Where the subject matter of a patent is a together with his enterprise or business, or with that part
product, to restrain, prohibit and prevent any Of his critcrprise or business in which the or preparations
unauthorized person or entity from rr,aking, for usc have been made.
using, offering for sale, selling or irnportit',?
that product. Use by the Government: A government agency or third
person authorized by the Government may exploit the

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invention even without agreement of the patent owner invalidity of the patent or any claim thereof on any
where: of the grounds for cancellation of a patent.
I . The public interest, in particular, national Voluntary Licensing: To encourage the tranEier anc
security, nutrition, health or the dissemination of technology, prevent or coatroi
development of other sectors, as determined practices and conditions that in oartiCU!d,- cases
by the appropriate agency of the constitute an abuse of intellectual property
government, so having an adverse effect on competit•ior, end a!)
requires technology transfer arrangements shall comply With
2. A judicial or administrative body has the provisions of the IP Code.
determined that the manner of exploitation, Mandatory provisions:
by the owner of the patent or his licensee, is 1. That the laws of the Philippines shall govern
anticompetitive the interpretation of the same and in the
Patent Infringement: the making, using, offering for sale, event of litigation, the venue shall be the
selling or importing a patented product or a product proper court In the place where the licensee
obtained directly or indirectly from a patented process, or has •.ts principa! office;
the use of a patented process without the authorization 2. Continued access to improvements techniques
of the patentee and processes re!ated the technology shall be
made availab.•e during Zhe period of the
Literal Infringement: if one makes, uses or sells an technology transfer arrangement;
item that contains all elements of the patent claim. 3. In the event the technology transfer
This test is satisfied in either of the following: arrangement shall provide for arbitration, the
I . Exactness rule: the item that is being sold, Procedure of Arbitration of the Arbitration Law of
made or used conforms exactly to the patent the Philippines or the Arbitration Rules of the
claim of another United Nations Commission on International
Trade Law (UNCITRAL) or the Rules o!
2. Addition rule: one makes, uses or sells an item
that has all the elements of the patent claim Conciliation and Arbitration of the
of another plus other elements Internat,onal Chamber of Commerce (ICC)
shal; apv.i y and the venue of arbitration shall
Doctrine of Equivalents: An infringement also takes be t.he or any neutral country; and
place when a device appropriates a prior invention 4. The Philippine taxes on all payments relafing to
by incorporating its innovative concept and, the technology transfer arrangement shall be
although with some modification and change, borne by the licensor.
performs substantially the same function in Compulsory Licensing: issuance of a "cense by the
substantially the same way to achieve substantially Director General of the IPO to exploit a p3ter:ted
the same result. invention without the permission of the patent
Civil action: to recover from the infringer such holder, either by manufacture or through parallei
damages (actual damages not exceeding 3 times of irnportatlon Grounds.
damages sustained) sustained thereby, plus I . National emergency or other circun•staoces of
extreme urgency
attorney's fees and other expenses of litigation, and
2. Where the public interest, in particuiar, national
to secure an injunction for the protection of his security nutrition, healta or the development of
rights other vital sectors of the national economy as
determinec by the appropriate agency of the
Criminal action: imprisonment for a period not less Government, so requires
than 6 months but not more than 3 years and/or a 3. Where a judicial or administrative •oody has
fine of not less than P 100,000.00 but not more than determined that the manner of expicitat10)2 by
P300,OOO.OO. the owner of the patent or his is anticompetitive
4. In case of public non-commercial use ef the
Prescription: 3 years from the date of commission of the patent by the patentee, without satisfactory
crime (repetition of infringement) reason
Note: Under Section 79 Of RA8293, no damages can be
5. If the patented invention is not being worked in
recovered for acts of infringement committed more than
the Philippines on a commercial scale, although
4 years before the institution of the action for
capable of being worked, without satisfactory
tnfnngement.
reason, provided, that the importation of the
Defenses in action for infringement: In addition to patented article sha.q constitute working or
using the pateht
other defenses available to him, he may show the

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6. Where the demand for patented (iruqs and 3. Consists of a name, portrait or signature
medicines is not being met to an adequate identifying a particular living individual
extent and on reasonable terms, as except by his written consent, or the name,
ceteqnined by the Secretary of DOH signature or portrait of a deceased
President of the Philippines, during the life
Assignment of inventions: An assignment may be of the
entire right, title or interest in and to the patent and the of his widow, if any, except by written
invention covered thereby, or of an unchvidcd share of the consent of the widow
entire patent and invention, in which event the parties 4 Identical with a registered mark belonging to
become joint owners thereof An assignment may be limited a different proprietor or a mark with an
to a specified territcrv. it must be in writing, acknowledged
before notary public or other officer authorized to oat•h or
earlier filing or priority date, in respect of:
perform notarial acts, and certified under the hand and The same goods or servtces
official seal of the notary or such other officer. b. Closely related goods or services
c. If it nearly resembles such a mark as
to be likely to deceive or cause

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confusion
5. identical with, or confusingly similar to, or
constitutes a translation if a mark which is
considered by the competent authority of the
Philippines to be well-known internationally
and in the Philippines, whether or not it is
registered here
Mark: any visible sign capable of distinguishing the 6. Identical with, or confusingly similar to, or
goods (trademark) or services (service mark) of an
enterprise constitutes a translation of a mark
Requirements: considered well-known, which is registered
I. Visible sign in the
2. Capable of distinguishing the goods of an Philippines with respect to goods or
enterprise services whtch are not similar to those with
respect to which registration is applied for
Collective mark: any visible sign designated as such 7. Likely to mislead the public, particularly as
in the application for registration and capable of to the nature, quality, characteristics,
distinguishing the origin or any other common geographical origin of the goods or services
characteristic, including the quality of goods or 8. Generic terms for goods or services
services of different enterprises which use the sign 9. Descriptive marks
under the control of the registered owner of the 1 0. Customary sign in everyday language
collective mark 1 1. Color by itsetf
12. Shapes
Trade name: name or destgnation identifying or
Contrary to public order or morality
distinguishing an enterprise
Contents of Trademark Application: (in Filipino or
How acquired: The rights in a mark shall be
English';
acquired through registration (from the filing date
of appiication) with the IPO.
Non-registrable marks:
1. Immoral, deceptive or scandalous matter or
matter which may disparage or falsely
suggest a connection with persons living or
dead, institutions, beliefs or national
symbols or bring them into contempt or
disrepute
2. Consists of the flag or coat of arms or other
insignia of the Philippines or any of Its political
subdivisions, or of any foreign nation, or any
simulation thereof

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I . A request for registration of the required fee, shall issue the certificate of registration.
2. Name and address of the applicant Upon issuance of said certificate, notice thereof making
3. Name of a State of which the applicant is a reference to the publication of the application shall be
national or where he has domicile. and the published tn the IPO Gazette.
name of a State in which the applicant has a real Certificate of Registration: prima facie evidence of the
and effective industrial or commercial validity of the registration, the registrant's ownership of
establishment, if any the mark, and of the registrant's exclusive right use the
4. If applicant is a juridical entity, the law under same in connection with the goods or services and
which it is organized and existing those that are related thereto specified in the
5. Appointment of an agent or representative, if certificate; may be renewed for periods of 10 years upon
the applicant is not domiciled In the Philippines payment of prescribed fee and filing of request
6. If applicant claims priority of an earlier
application: Tests :
a. The name of the State witli whose 1. Dominancy Test: focuses on the similarity of the
national office the earner application prevalent features of the competing trademarks
was filed, which might cause confusion or deception, and
b. The date of which the earlier application thus infringement; question: whether the use of
was filed, and the marks involved is likely to cause confusion or
mistake in the mind of the public or deceive
c. Application number of the earlier purchasers
application, if available. 2. Holistic Test: requires that the entirety of the
7. If applicant claims color as a distinctive feature marks in question be considered in resolving
of the mark, a statement to that effect as well as confusing similarity
the name or names of the color or colors
claimed and an indication, in respect of each Well-known Mark: which is determined by competent
color, of the principal parts of the mark which authority (competent courts or Bureau of Legal Affairs of
are in that color IPO) to be well-known internationally and in the
8. If the mark is a three-dimensional mark, a Philippines, whether or not it is registered in the
statement to that effect Philippines, as being already owned by someone taking
into account the knowledge of the relevant sector in the
9. One or more reproductions of the mark
Philippines which has been obtained as a result of the
10. A transliteration or translation of the mark or of promotion of the mark
some parts of the mark
Il. The names of the goods or services for which the Rights conferred by registration:
registration is sought l. The owner of a registered mark shall have the
12. A signature by, or other self-identification of, exclusive right to prevent all third parties not
the applicant or his representative Note: One having the owner's consent from using in the
application may relate to severa! goods and/or services, course of trade identical or similar signs or
whether they belong to one class or tc several classes of containers for goods or services which are
the Nice Classification. identical or similar to those in respect of which
Prior Use: not required before registration, however, the trademark is registered where such use
there must be actual use after registration would result in a likelihood of confusion.
2. The exclusive right of the owner of a wellknown
Declaration of Actual Use: must be filed within 3 years mark which is registered in the Philippines, shall
from the filing date of application; otherwise, extend to goods and services which are not similar
application shall be refused or the mark be removed to those in respect of which the mark is registered:
from the Register; after certificate of registration is provided, that the use of that mark in relation to
issued, declaration must be filed within one year from those goods or services would indicate a
the 5 th anniversary of the date of registration connection between those goods or services and
the owner of the registered mark: provided
Division of Application: Any application referr:ng to further, that the interests of the owner of the
several goods or services (initial application) may be registered mark are likely to be damaged by such
divided by the applicant into 2 or more applications use.
(divisional applications), by distributing among the latter
the goods or services referred to in the Initial Use by third parties: Registration of the mark shall not
application. confer on the registered owner the right to preclude
Note: The divisional applications shall preserve the filing third parties from using bona fide their names,
date of the initial application or the benefit of the right addresses, pseudonyms, a geographical name or exact
of priority. indications concerrung the kind, quality, quantity,
destination, value, place of origin or time of production
Issuance and Publication of Certificate: When the period for or of supply, of their goods or services: provided, that
filing opposition has expired, or when the Director of Legal such use is confined to the purposes of mere
Affairs shall have oenicd the opposition, the IPO upon payment

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identification or information and cannot mislead the Remedies:
public as to the source of the goods or services. 1. Damages: reasonable profit (doubled if there is
actual intent to mislead or defraud)
Assignment of Application and Registration: allowed with
or without the transfer of the business using the mark; 2. Impoundment of sales invoices and
no effect against third parties until recorded at the IPO documents evidencing sales
3. Injunction
Cancellation of Registration: Any person who believes 4. Destruction of infringing material
that he is or will be damaged by the registration may file 5. Criminal action
With the Bureau of Legal Affairs:
Requirement of notice: In any sutt for Infr;ngement, the
1. Within 5 years from the date of registration;
owner of the registered mark shall not be entitled to
2. At any time, recover profits or damages unless the acts have been
a. if the registered mark becornes the committed with knowledge that such IS likely to
generic name for the goods or services, cause confusion, or to cause mistake, or to deceive. Such
or a portion thereof, for which it a'S knowledge is presurned if the registrant gives notice that
registered, or his mark is registered by with the mark the words
"Registered Mark" or fä) or it the defendant had
b. has been abandoned, or
otherwise actual notice of the registration.
c. its registration was fraudulently or
contrary to i3W, oc Rules in trade names or business names:
d. if the registered mark is being used {v/ , I. A name or designation may not be used as a trade
or with the permiss i.on of, the registrant name if by Its nature or the use to which such
so as to misrepresent the source of name or designation may be put, it is contrary to
goods or services on or in connection public order or morals and if, in particular, it is
with which the mart• is liable to deceive trade circles or the public as to
used, or the nature of the enterprise identified by that
name.
e. if the registered owner oi the •nark
without any legitimate rcason fails use 2. Notwithstanding any laws or regulations
the mark w:thin the Philippines, cr to providing for any obligation to register trade
cause it to be used in by virtue of r:arnes, such names shall be protected, even
a license dwnrtg an uninterrupted period prior to or without registration, against any
af Or longer unlawful act committed by third parties.
3. In particular, any subsequent use of the trade
name by a third party, whether as a trade name
Non-use : may be excused if caused by or a mark or collective mark, or any such use of a
arising independently of the will of the tradernark owner; similar trade name or mark, likely to rnis;ead
lack of funds shall not excuse non-use the public, shall be deemed unlawful.
4. Any change in the ownership of a trade name
Misuse: if it does not alter its distinctive character, it not
shall be made with the transfer of the
a ground for cancellation
enterprise or part thereof identified by that
Trademark Infringement: Any person who shaii, without name.
the consent of the owner of the reg;stered mark:
Rules on coiiective marks:
I . Use in commerce any reproduction, counterfeit, copy 1. An application for registration of a collective
or colorable imitation o:' a registered mark or the mark shall designate the mark as a collective
same container of a dominant feature thereof in rnark and shall be accompanied by a copy of the
connection with the sale, offering for sale, agreement, if any, governing the use of the
advertising of any goods or services collective mark.
including other preparatory steps necessery to carry
2. The registered owner of a collective mark shall
out the sale of any goods or services on or in
notify the Director of any changes made in
connection with which such use is cause
respect of the agreement.
confusion, or to cause mistake, or to deceive
3 The court shall cancel the registration of a collective
2. Reproduce, counterfeit, copy or imitate a mark if the person requesting the cancellation
registered mark or a dorninant feature thereof proves that only the registered
and apply such reproduction, counterfeit, copy or . owner uses the mark, or that he uses or permits
colorable imitation to labels, signs, prints, its use in contravention of the agreements or
packages, wrappers, receptacles or that he uses or permits its use in a manner liable
advertisements intended to ?'.e used in to deceive trade circles or
commerce upon or in connection the sale, the public as to the origin or any other common
offering for sa!e, distribution, or advertising of characteristics of the goods or services
goods or services cn or connection with which concerned.
such use is to cause confusion, or to cuse
mistake, or to deceive

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4. The registration of a collective mark, or an administrative or legai nature, as well as any
application therefor shall not be the subject of a official translation thereof.
license contract. 3. Copyright and material object: The copyright is
distinct from the property in the material object
unfair competition:
subject to it. Consequently, the transfer or
I. Any person who shall employ deception or any assignment of the copyright shall not itself
other means contrary to good faith by which he constitute a transfer of the material object. Nor
snail pass the goods manufactured by him or in shall a transfer or assignment of the sole copy or
which he deals, or his business, or services for of one or several copies of the work imply
those of the one having established such transfer or assignment of the copyright,
goodwill, or who shall commit any acts
calculated to produce said result. Definition of Terms:
2. Anv person, who is selling his goods and gives I. Author: the natural person who has created the
them the general appearance of goods of work
another manufacturer or dealer, either as to the 2. Collective work: created by 2 or more natural
goods themselves or In the wrapptng of the persons at the initiative and under the direction
packages in which they are contained, or the of another with the understand:ng that it will be
devices . or words thereon, or in any other disclosed by the latter under his own name and
feature of their appearance, which would be that contributing natural persons will not be
likely to influence purchasers to believe that the identified
goods offered are those of a manufacturer or 3. Public lending: transfer of possession of the
dealer, other than the actual manufacturer or original or a copy of a work or sound recording
dealer, who otherwise clothes the goods with for limited period, for non-profit purposes, by an
such appearance as shall deceive the pul)lic and institution the services of which are
defraud another of his legitimate trade, or any available to the public, such as public library or
subsequent vendor of such goods or any agent of archive
any vendor engaged in selling such goods with a
like purpose 4. Published works: works, which with the
3. Any person who by any artifice, or device or who consent of the authors, are made available to
employs any other means calculated to induce the public
the false belief that such person is offering the 5. Rental: transfer of possession of the original copy
services of another who has Identified such or a copy of a work or sound recording for a
services tn the mind of the public limited period of time, for profit-making purposes
4. Any person who shall make any false statement 6. Work of applied art: an artistic creation with
in the course of trade or who shall commit any utilitarian functions or incor porated in a useful
other act contrary to good faith of a nature article, whether made by hand or produced on
calculated to discredit the goods, business or an industrial scale
services of another
Copyright: right over literary and artistic works, which are
Criminal penalties: independent of the civil and original intellectual creations in the literary and artistic
domain protected from the moment of creation
administrative sanctions imposed by law,
imprisonment from 2 years to 5 years and a fine Copyrightable works:
ranging from P50,OOO.OO to P200,OOO.OO I. Literary and artistic works:
a. Books, pamphlets, articles and other
writings
Basic Principles: b. Periodicals and newspapers
1 . Moment of creation: Works are protected by the c. Lectures, sermons, addresses,
sole fact of their creation, irrespective of their dissertations prepared for oral delivery,
mode or form of expression, as well as of their whether or not reduced in writing or
content, quality and purpose. other material form
2. Unprotected subject matter: No protection shall d. Letters
extend to any idea, procedure, system method or
operation, concept, principle, discovery or mere
e. Dramatic or dramatico-musical
data as such, even if they are expressed, compositions; choreographic works or
explained, illustrated or embodied in a work; entertainment in dumb shows
news of the day and other miscellaneous facts f. Musical compositions, with or without
having the character of mere items of press words
information; or any official text of a legislative, g. Works of drawing, painting,
architecture, sculpture, engraving,

RFBT - 10 Page 9 of 10
ReSA — The Review School of Accountancy
lithography or other works or 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
Illustrations, maps, plans, sketches,
charts and 3-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 process analogous to
photography; lantern slides
Audiovisual works and cinematographic
works and works produced by a process
analogous to cinematography or any
process for making audiovisual
recordings
m. Pictorial illustrations and
advertisements
n. Computer programs
o. Other literary, scholarly, scientific and
artistic works
2. Derivative works:
a. Dramatizations, translations,
adaptations, abridgments, arrangements
and other alterations of literary or
artistic works
b. Collections of literary, scholarly or
artistic works and compilations of data
and other materials which are original
by reason of the selection or
coordination arrangement of their
contents

Published Edition of Work: In addition to the right to

publish granted by the author, his heirs, or assigns, the
publisher shall have a copyright consisting merely of the
right of reproduction of the typographical arrangement of
the published edition of the work.
Non-copyrightable works:
I. Any idea, procedure, system, method or operation,
concept, principle, discovery or mere data as
such, even if they are expressed, explained,
illustrated or embodied in a work
2. News of the day and other miscellaneous facts
having the character of mere items of press
information
3. Any official text of a legislative,
administrative or legal nature, as well as any
official translation thereof
4. Any work of the government of the Philippines
Rights of copyright owner:
I. Economic rights: exclusive right to, carry out,
authorize or prevent:

RFBT 10 Page 10 of 10
ReSA — The Review School of Accountancy
a. Reproduction of the work or substantial a writer, a photographer, an artist to a
portion of the work periodical r newspaper publisher, but such
b. Dramatization, translation, auavtation, writer or artist retains his copyright on the
abridgment, arrangement or Of-her piece
transformation of the work
Rules on ownershiÖ of copyright:
c. First public distribution of the copy I. One creator: creator, his heirs or assigns owns
of the work
copyright
d. Rental of the original or copy of ar
audiovisual or cinematographic work 2. Joint creation: co-authors shall be the
e. Public display of the origtnai or com.' of owners of the copyright and in the absence of
the work agreement their rights shall he governed the
f. Public performance of the work rules on co-ownership.
g. Other communication to the public of the 3. Commissioned work. the person commissioning
work owns the work; ownership of copyright remains
With the creator, unless there is a stipulation to
2. Moral rights (Term: 50 years after the contrary
authors death; not assignable or st.lbject to 4. Audiovisual work: producer for purposes of
license) exhibition; for all other purposes, the producer,
a. Require that the authorship oi the works the author of the scenario, the composer, the
be attributed to him, in prominent way film director, the photographic director and the
on the comes, and '.v,rin the public use or author of the work are the owners
the k 5. Pseudonymous and anonymous works: unless
b. Make any alterations of his prior to or to the author is indisputably known, the
withhoid it fron•l pubiication publisher Shali be presumed to be the
C. Object to any distortion, mu%iation other representative of the author
modification of, or other derogatory
6. Employee's work during course of
action in relation to, his work which
would be prejudicial to hrs honor or ernployment: employer, if the result of
reputation regular functions or duties but the employee
d. Restrain the use of his name with respect owns it if it is not part of his duties
to any work not if his owl' creation or in a
distorted version ot his work Limitations on Copyright: does not constitute
infringement:
Note : An author may waive his mot-a! rights by a
I. The recitation or performance of a work, once
written instrument except when the waiver
permits another that would substantially tend to It has been lawfully made accessible to the
injure the literary or artistic reputation of another public, if done privately and free of charge or if
author or use the narne of the author with made strictly for a charitable or religious
respect to a work he did not create. The person or institution or society;
persons to be charged With the posthumous
2. The making of quotations from a published
enforcement Of these rights '*ha!} be named in
work if they are compatible with fair use and
writing to be filed with the National Library. In
only to the extent justified for the purpose;
default of such per3-•n or persons, it shall
devolve upon either the author's heirs, and in 3. The reproduction or communication to the
default ot the hen-s, the Director of the National public by mass media of articles on current
Library. pofitical, social, economic, scientific or
Publisher's rights: religious topic, lectures, addresses and
I. The right to publish granted by the author, his other works of the same nature, which are
heirs or assigns delivered in public if such use is for
2. The publisher shall have a copyright consisting information purposes and has not been
merely of the right of reproduction of the expressly reserved and the source is clearly
typographical arrangement of the published indicated;
edition of the work
4. The reproduction and communication to the
3. If submitted to newspaper, magazine and the public of literary, scientific, or artistic works as
like, the right to publish once materials sent part of reports of current events by means of

RFBT - 10 Page 11 10
ReSA — The Review School of Accountancy
photography, cinematography, or broadcasting the original of a building to which that copyright
to the extent necessary for the purpose; relates
5. The inclusion of a work in a publication,
broadcast, or other communication to the Rules on Reproduction: permitted
public, sound recording or film, if such inclusion I. Published work: private reproduction in a single
is made by way of illustration for teaching copy made by a natural person exclusively for
purposes and is compatible with fair use, and research and private study, without the
source and name of author are mentioned; authorization of the owner of copyright,
except:
6. The recording made in schools, universities, or
educationai institutions of a work included in a a. Work of architecture;
broadcast for the use of such schools, b. Entire book or a substantial part
universities, or educational institutions (such thereof, or of a musical work in
recording must be deleted within a reasonable graphic form by reprographic means;
period after first broadcast); c. Compilation of data and other
7. The making of ephemeral recordings by a materials;
broadcast organization by means of its own
facilities and for use In its own broadcast;
d. Computer program; and
8. The use made of a work by or under the e. Where reproduction wouié.
unreasonably conflict with a normal
direction or control of the Government, by the
exploitation of the work or would
National Library or by educational, scientific, or
otherwise unreasonably prejudice the
professional institutions where such use is in the legitimate interests of the author.
public interest and is compatible with fair use;
2. By libraries: make a single copy of the work by
9. The public performance or the communication reprographic reproduction, without the
to the public of a work, in a place where no authorization of the author or copyright owner:
admission fee is charged in respect of such
a. Where the work by reason of its fragile
public performance or communication, by a
character or rarity cannot be lent to
club or institution for charitable or educational
user In its original form;
purpose only, whose aim is not profit making;
b. Where the works are isolated articles in
10. Public display of the original or a copy of the composite works or brief portions of
work not made by means of a film, slide, other published works and the
television Image or otherwise on screen or reproduction is necessary to supply
them, when this considered
by means of any other device or process; expedient, tö persons requesting their
I I. Any use made if a work for the purpose of any loan for purposes of research or study
judicial proceedings or for the giving of instead of lending the volumes booklets
professional advice by a legal practitioner. which contain them; and
Doctrine of Fair Use: Fair use of a copyrighted work c. Where the maxing of such copy is in

multiple copies for classroom use scholarship,

research
for criticism, .comment, news reporting, teaching order to preserve and, if necessaty in
Including the event that it is lost, destroyed, or
rendered unusable, replace a copy, to
and similar purposes is not an infringement of copyright.
replace, in the permanent collection of
Factors: another similar library or archive, a
1. Purpose and the character of the use copy which has been lost, aestroyed,
2. Nature of the copyrighted work or rendered unusable and copies are
3. Amount and substantiality of the portions not available with the publisher.
used 3. Computer program: reproduction in one hackup
4. Effect of the use upon the potential market uf copy or adaptation of a computer program,
the copyrighted work without authorization of the author, or other
copyright owner
Work of Architecture: includes the right to control the
erection of any building which reproduces the whole Importation for Personal Purposes: permitted without
or a substantial part of the work either in its original the authorization of the author of or other copyright
form or tn any form recognizably derived from the owner
original; excludes the right to control the I. When copies of the work arc not available in the
reconstruction or rehabilitation in the same style as Philippines, and:

RFBT - 10 Page 12 of 10
 ReSA — The Review School of Accountancy
a. Not more than one copy at onc time IS Original, derivative, and During the life of the
imported for strictly individual use only; posthumous works author and for 50 years
or
after his death
b. The importation is by authority of and Works of joint authorship During the life of the
for the use of the Philippine
Government; or last surviving author
c. The importation, consisting of not more and for 50 ears after
than 3 such copies or likenesses in any his death
one invoice, is not for sale but for Anonymous or 50 years from the date
use only of any religious, charitable, or on
educational society or institution duly
incorporated or registered, or is for the pseudonymous works which the work was
encouragement of the fine arts, or for first lawfully
any state school, college, university, or published
free public library in the Philippines If author's identity is During the life of the
2. When such copies form parts of libraries and
revealed or is no longer in author (or last
pergonal baggage belonging to persons or
families arriving from foreign countries and are surviving
not intended for sale (should not exceed 3 doubt author) and for 50
copies) years after his
If not published death
B! each of Contract: An author cannot be compelled to
perform his contract to create a work or for the 50 years from the making
publication of his work already in existence. However, he of the work
may be held liable for damages for breach of such
contract. Works of applied art 25 tears from the date
of making
Sale or Lease of Work: In every sale or lease of an original Photographic works 50 years from publication
work of painting or sculpture or of the original
If not published 50 years from making
manuscript of a writer or composer, subsequent .to the
first disposition thereof by the author, the author or his Audio-visual works 50 years from publication
heirs shall have an inalienable right to participate in the If not published 50 years from making
gross proceeds of the sale or lease to the extent of 5%.
Effectivity; during the lifetime of the author and for 50 How to compute: The term of protection subsequent to
years after his death the death of the author shall run from the ciöte of his
Exception: prints, etchings, engravings, works of app!ied death or of publication, but such terros, always be
art, or works of similar kind wherein the author primarily deemed to begin on the first day of January of the year
derives gain from the proceeds of reproductions following the event which gave rise to them
Example: If the author of a literary work dies on 20'
Works Term of Protection 'y 1 2017M the 50_ycar-tcrm shall begin to run on
oi
January I, 2018. Hence, the protection expires
December 31 2067 and not June 30 2067
Performances not 50 years from the end of incorporated in
recordings the year which the took riace
Sound or image and 50 years frorn the: enc-i of sound recordings and
for the year in which tine performances recording took place
incorporated therein
Broadcasts 20 years from the date the broadcast took l.h\ace

Presumption of Authorship:
I. The natural person whose name is indicateci co a work in the
usual manner as the author snail, in the absence of proof to the
contrary, bc presumed to be the author of the WOIk. (applicable
where the pseudonym ieaves no doubt as to the identity of the
author)

RFBT - 10 Page 13 10
ReSA — The Review School of Accountancy
2. The person or body corporate whose name appears on an
audio-visual work the usual manner shall, in the absence Of
proof to the contrary, be presumed to be the maker of said,
work.

Ownership of Deposit and Instruments: AO ccr,ies deposited and

instruments in writing flied with the. National Library and the
Supreme Court Library in accordance with RA8293 shall become the
property of the Government.

Copyright Infringement: when there is piracy or substantial reproduction

Remedies:
1. Injunction to prevent infringement
2. Action for damages which should be filed within

4 years
3. Criminal case
Criminal penalties:
i. Imprisonment of 1 to 3 years plus fine from P50,OOO.OO to
PIOO,OOO.OO for the first offense 2. Imprisonment of 3 years and
1 day to 6 years plus fine from PISO,OOO.OO to P500,OOC.OO for
the second offense
3. Imprisonment of 6 years and 1 day to 9 years plus fine from
P500,OOO.OO to for the third and subsequent offenses
4. In all cases, subsidiäry imprisonment cases of insolvency

RFBT - 10 Page 14 of 10
 5thFloorCMFFlBuilding
ReSA 813 Cor. R Papa and S Loyola Sts. Sampaloc,
Manila
The Review School of Accountancy *735-9807 1 734-3989 resareview@hotmai! / (0910) 439-1320com

Regulatory Framework for Atty. R. Rosales • Atty. J. Domingo Business Transactions (RFBT) Atty. N.
Valderrama

RFBT - IOQ: INTELLECTUAL PROPERTY

1. It refers to a work which has been created by 2 or more natural persons at the initiative and under the
direction of another with the understanding that it will be disclosed by the latter under his own name and
that contributing natura; persons will not be identified.
A. Collective work C. Work of applied art
B. Joint work D. product
2. It refers to an artistic creation with utilitarian functions or incorporated in a useful article, whether made by
hand or produced on an industriai scale.
A. Work of applied art C. Collective work B. Joint work D. Jcint product
3. When do rights over copyrights conferred?
A. From the moment of creation
B. Upon publication
C. Upon registration with IPO
D. Upon registration with National Library
4. In case of joint creation, who owns the copyright?
A. Co-authors C. State
B. Main author C'. The heirs and assigns
5. In case of commissioned work, who owns the copyright?
A. Creator, unless there is a contrary agreement
B. Creator, notwithstanding a contrary agreement
C. Person commissioning the work D. Employer
6. For purposes of exhibition, who owns the copyright over an audio-visual work?
A. Producer C. Author
B. Composer D. Director
7. In case of pseudonymous and anonymous and the author is indisputably unknown, who shall be presumed
to be the representative of the author'
A. Publisher C. Heirs and' assigns
B. Distributor D. Employer
8. In case of employee's work during the course of employment and it results from the regular functions or
duties, who owns the copyright?
A. Employer C. Publisher
B. Employee D. Heirs and assigns
9. In case of employee's work during the course of employment and it does not result from the regular
functions or duties, who owns the copyright?
A. Employee C. Publisher
B. Employer D. Hairs and assigns
10. The duration of copyright for joint creation is during the life of the }ast surviving author and for 50 years
after the death of the surviving author.
A. Last C. Second
B. First D. Heirs of the last
11. The duration of copyright for an anonymous or a pseudonymous work is until the end of 50 years following
the date of its first:
A. Publication C. Registration B. Creation D. Distribution
 12. The 50-year duration of copyright for anonymous or pseudonymous works commences from:
A. January I following the date of publication C. January 1 following the date of registration B. January
I following the date of distribution D. The moment of creation
13. The duration of copyright for published photographic works is:
A. 50 years from the publication of the work C. 50 years from the creation of the work
B. 25 years from the publication of the work D. 25 years from the creation of the work
14. How many times can a periodical or newspaper publisher publish a material sent by a writer, a
photographer, or an artist?
A. Only once C. Thrice
B. Twice D. I-Jnlimited
15. When a material is sent by a writer or an artist to a periodical or newspaper publisher, who owns the
copyright over the material?
A. Still the writer or the artist C. The publisher
B. The writer/artist and the publisher, jointly D. No more copyright due to publication
RebA — Trte xevtew
16. Recordings made in schoo!ö, universites, or educational institutions Of a work included in a broadcast for
the use of such institut!ons do not constitute copyright infringement if said recordings are deieted w'.t;.un•
A. A reasonable period C. 15 days from date of recording
B. 5 days from date of reccrci;nq D. 30 days from date of recording
17. How many back-up copy/ies of a computer program can be made without committing copyright
infringement?

IS. It refers to use of a copyt:ghted tor criticism, comment, news reporting, teaching including multiple
copies for classroom use, scholarship, research, and similar purposes which is not an infringement
of copyright.
A. Fair Use C. Use in Good Faith
3. Good Use D. justified Use
19. The importation of a copy •of a by en individual for his personal purposes shall be permitted without the
authorization o/ the of, or ether owner of copyright if the copies form part of libraries and personal
baggage belongtng to persons or families arriving from foreign countries and are not intended for sale,
provided thlt such copies do not exceed copies.

20. It is committed when there ts ptracy or substantial reproduction.

A. Copyright Infringement C. Patent Infringement B. Trademark Infringement D. Unfair
Competition
21. What are the remedies available ir. case the:e is copyright infringement?
A. Injunction, action for damages. ami case
3. Injunct!er only
C. Action for damages oaiy
D. Criminal case only
22. An action for damages In case of copyr!g.at rnust be filed within years.
23. The basic requirements of a tradern3rk are:
A. Visibility and distinctiveness C. Originality and distinctiveness
B. Visibility and D Visibility, distinctiveness and originality
24. How are rights in a mark reauu-
eU?
A. Registration with IPO C. Prior use
B. Actual use D. Reservation with IPO
25. The registrant shall file a declaraüun of actuai use of the mark with evidence to that effect within years
from the fi!ing date of the application othenvise it may be cancelled.

26. The certificate of registration of mark shall be evidence of the validity of the registration, the
registrant's ownership of the mark, end the reystrant's exclusive right to use the same.

of
 A. Prima facie C. Conclustve
B. Disputable D. Iota of
27. First Statement: A registrant s right over a mark may be questioned by a person who has a better right
including persons with known marks.
Second Statement: Registraeor. of a mark not important to keep the goodwill that identifies In the
mind of the public the goods he manufactures or deals in.
A. Both statements are true. C. Only second statement IS true.
B. Only first statement is true. D. None of the statements is true.
28. It provides that a generic or descriptive mark may later acquire the characteristic of distinctiveness and
can later be registered if it acquires a meaning which is different from its ordinary connotation.
A. Doctrine of Secondary Meanina C. Doctrine of Tertiary Meaning B. Doctrine of Primary Meaning D.
Doctrine of Second Meaning
29. How many renewal can be made on a traci•emark registration?
A. Indefinite C. 10 of 5 years each
B. 10 of 10 years each D. 5 of 10 years each
30. It is when an other."ise pruaent purchaser IS Induced to purchase one product in the belief that he is
purchasing another, in which case the defendant's goods are then bought as the plaintiff's and its poor
quality reflects badly on the plaintiff's reputation
A. Confusion of goods C. Merger of goods
B. Confusion of bustness D. Merger of business
31. It focuses on the similarity oi the prevalent features of the competing trademarks which might cause
confusion or deception, and ti•.us infringement.
A. Dominancy Test C. Ali Events Test
B. Holistic Test D. Comparative Test

32. These refer to contested cases betore the IPO.

A. Inter Partes Cases C. Multi-party Cases

B. Related Cases D. Multiple Cases

RFBT - IOQ Page 2 3

ReSA The Review School of Accountancy
33. It provides that a mark cannot be registered if it is identical with, or confusingly similar to, or
constitutes a translation of a mark considered well-known which is registered in the Philippines
with respect to goods or services ßhich are not similar to those with respect to which
registration IS applied for, provicied that use of the mark in relation to those goods or services
would indicate a connection between those goods or services, and the owner of the registered
mark, provided further, that the interests of the owner of the registered mark are likely to be
damaged by such use.
A. Theory of Dilution C. Theory of Similarity
B. Theory of Confuston D. Theory of Connection
34. It refers to having regard to pno;• art, it is not obvious to a person skilled in the art at the time
of the filing date or priority date of the application claiming the invention.
A. Inventive step C. Novelty
B. Industrial applicability D. Originality
35. Who is presumed to be an ordinary practitioner aware of what was common general
knowledge in the art at the relevant date?
A. Person skilled in the art C. Consultant
B. Expert D. Researcher
36. if two or more persons have made the invention separately and independently of each other the right
to the patent shall belong to the person who:
A. First filed an application for such invention
 B. First started with the invention
C. First finished the invention
D. Has the greatest use for the public
37. It refers to importation of drugs and medicines by a government agency or by any private third
party.
A. Parallel importation C. Technical smuggling
B. Illegal smuggling D. Complex importation
38. There is infringement of patent under this test if one makes, uses, or sells an item that contains all the
elements of the patent c;aim.
A. Literal Infringement C. Exactness Rule
B. Doctrine of Equivalents D. Addition Rule
39. First Statement: Compulsory license should be granted to any person who has shown his
capability to exploit the invention.
Second Statement: The compu!sciY will only be granted after the petitioner has made efforts to
obtain authorization from the patent owner on reasonable commercial terms and conditions but
such efforts have not been successful within a reasonable period of time. A. Both statements are
true. C. Only the second statement is true.
B. Only the first staternent is true. D. None of the statements is true.
40. This concept comes into play when two or more inventions are claimed in a single application but are of
such a nature that a single patent may not be issued for them
A. Concept of divisional applicat i ons C. Concept of complex applications
B. Concept of multiple applications D. Concept of complicated applications

ANSWER KEY

RFBT - IOQ Page 3 of 3

of