Several business -----

Price fixing – businesses agreed to direct or

indirectly fixed purchase price or selling price
instead of letting supply and demand of the
goods and services.

Bid rigging – the business agreed to fixed prices

on an auction or manipulate bids where in they
could force buyers to select the higher price of
pre-selected bid instead of the fixed price.
Bis suppression – some bidders will not bid so
the one who submitted will win.

Cover bidding – there are several bidders but one

intentionally submits a losing bid (kulang sa
requirements, etc.)

Bid rotation – bidders agreed to take turns in

winning the bid.

Output limitation – the competitors/business

entities agreed to limit production to create
artificial shortage in the market.

Market sharing – businesses divide the market

and claim dominance according to territory,
customer demographic, sales volume or type,
creating local monopoly does deprived
consumers of choice.

One business only -----

Predatory pricing – a dominant firm deliberately

incurs losses in a short term by selling goods or
services below the cost of its production which
can eventually force its competitors out of
business.

Price discrimination – dominant form fixed its

prices or conditions for equivalent transaction.
(Same transaction but the price is different
compared to other competitors)

Exploitative behavior – a dominant firm charges

excessive or unfair prices or employs other unfair
trading conditions. It takes undue advantage as
against its competition.

Limiting productions, etc – dominant firm

restricts output to use the development of new
technology to the detriment of the consumers.
INTELLECTUAL
PROPERTY CODE
(REPUBLIC ACT NO. 8293)
 INTELLECTUAL
PROPERTY OFFICE
Functions of the IPO
 Examine applications for grants of letters
patent for inventions and register utility models
and industrial designs
 Examine applications for the registration of
marks, geographic indications, integrated circuits
 Register technology transfer arrangements and
settle disputes involving technology transfer
payments
 Promote the use of patent information as a tool
for technology development
 INTELLECTUAL
PROPERTY OFFICE
Functions of the IPO
 Publish regularly in its own publications
the patents, marks, utility models and industrial
designs, issued and approved, and the technology
transfer arrangements registered
 Administrative adjudicate contested
proceedings affecting intellectual property
rights; and
 Coordinate with other government agencies
and the private sector to strengthen the
protection of intellectual property rights in the
country
PATENTS
 PATENT
 A grant by the government of the right to stop others
from making, using, or selling an invention within its
jurisdiction for a limited period of time
 Granted to protect an article that is essentially better
in some way than what was made before, or for a
better way of making it
 A statutory grant which confers to an inventor or his
legal successor, in return for the disclosure of the
invention to the public, the right for a limited period
of time to exclude others from making, using, selling
or importing the invention within the territory of the
country that grants the patent
PURPOSES OF THE PATENT LAW

 Seeks to foster and reward invention

 Promotes disclosures of inventions to
stimulate further innovation and to permit the
public to practice the invention once the patent
expires
 Seeks to ensure that ideas in the public
domain remain there for the free use of the
public
PATENTABLE INVENTIONS
Section 21.

Any technical solution of a problem in any field of

human activity which is new, involves an inventive
step and is industrially applicable. It may be, or
may relate to, a product, or process, or an
improvement of any of the foregoing.
REQUISITES
1. Novelty - An invention shall not be considered
new if it forms part of a prior art

2. Involves an Inventive Step - if, having

regard to prior 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

3. Industrially applicable - An invention that

can be produced and used in any industry, shall
be industrially applicable
 WHEN SHALL THE PATENT TAKE
EFFECT?

A patent shall take effect

on the date of the publication
of the grant of the patent in the
IPO Gazette.
HOW LONG IS A PATENT VALID?
In the Philippines, invention patents are
valid for a term of twenty (20) years from the
filing date of the application.

However, a patent shall cease to be in force

and effect if any prescribed annual fee is not paid
within the prescribed time or if the patent is
cancelled in accordance with the provisions of the
Intellectual Property Code.
 “The patent system thus embodies a carefully crafted
bargain for encouraging the creation and disclosure of new
useful and non-obvious advances in technology and design,
in return for the exclusive right to practice the invention for
a number of years. The inventor may keep his invention
secret and reap its fruits indefinitely. In consideration of its
disclosure and the consequent benefit to the community, the
patent is granted. An exclusive enjoyment is
guaranteed him for 17 years (20 years in the
Philippines), but upon the expiration of that period,
the knowledge of the invention inures to the people,
who are thus enabled to practice it and profit by its
use." Bonito Boats, Inc. vs. Thunder Craft Boats, Inc., 489
US 141 as cited in Pearl & Dean vs. Shoemart – G.R. No.
148222 (August 15, 2003)
 PATENTABLE NON-PATENTABLE
INVENTIONS INVENTIONS
 Discoveries, scientific
 Useful machine theories, mathematical
 Product (Articles of method
Manufacture)  Schemes, rules and
methods of performing
 Process/Methods mental acts, playing games
 Improvement of a
or doing business, and
programs for computer
useful machine,  Methods for the treatment
product, process of the human or animal
 Micro-organism
body
 Plant varieties or animal
 Non-biological and breeds
microbiological  Aesthetic creations
process  Anything which is contrary
to public order or morality
 WHO IS ENTITLED TO A PATENT?
 The right to a patent belongs to the inventor, his
heirs or assigns
 When two or more persons have jointly made an
invention, the right to a patent shall belong to them
jointly
 2 or more persons invented separately and
independently of each other – To the person who filed
an application
 2 or more applications are filed – the applicant who
has the earliest filing date or, the earliest priority
date
 FIRST TO FILE RULE

If two or more persons have made the

invention separately and independently of each
other, the right to a patent shall belong to the
person who first filed an application for such
invention
 WHO IS ENTITLED TO A PATENT?

 Inventions created pursuant to a commission – Person who

commissions the work, unless otherwise provided in the
contract
 Employee made the invention in the course of his
employment contract:
1. The employee, if the inventive activity is not a part of his
regular duties even if the employee uses the time, facilities
and materials of the employer.
2. The employer, if the invention is the result of the
performance of his regularly‐assigned duties, unless there
is an agreement, express or implied, to the contrary.
GROUNDS FOR CANCELLATION OF PATENT:

1. The invention is not new or patentable;

2. The patent does not disclose the invention in a
manner sufficiently clear and complete for it to
be carried out by any person skilled in the art;
or
3. Contrary to public order or morality
4. Patent is found invalid in an action for
infringement
RIGHTS CONFERRED BY A PATENT

1. Right to restrain, prohibit and prevent any

unauthorized person or entity from making,
using, offering for sale, selling or importing the
product.
2. Right to restrain prohibit and prevent any
unauthorized person or entity from
manufacturing, dealing in, using, offering for
sale, selling or importing any product obtained
directly or indirectly from such process
3. Right to assign the patent, to transfer by
succession, and to conclude licensing contracts.
 PATENT INFRINGEMENT
- The making, using, offering for sale, selling or
importing a patented product or a product obtained
directly or indirectly from a patented process, OR
- the use of a patented process, without the
authorization of the patentee

Tests:
1. Literal Infringement

2. Doctrine of Equivalents

3. Economic Interest Test

 LITERAL INFRINGEMENT
IF ONE MAKES, USES OR SELLS AN ITEM THAT
CONTAINS ALL THE ELEMENTS OF A PATENT CLAIM

EXACTNESS RULE ADDITION RULE

The item that is being One makes, uses, or

sold, made or used sells an item that has all
conforms exactly to the the elements of the
patent claim of another patent claim of another
plus other elements
 DOCTRINE OF EQUIVALENTS
An infringement also takes place when a
device appropriates a prior invention by
incorporating its innovative concept and,
although, with some modification and change,
performs substantially the same function in
substantially the same way to achieve
substantially the same result.
The principle or mode of operation must be
the same or substantially the same.
This requires the satisfactions of the
function-means-and-result test.
 ECONOMIC INTEREST TEST
when the process‐discoverer’s
economic interest are compromised,
i.e., when others can import the
products that result from the process,
such an act is said to be prohibited
TRADEMARK
TRADEMARK / SERVICE MARK
Any visible sign capable of distinguishing
the goods (trademark) or services (service mark) of
an enterprise and shall include a stamped or
marked container of goods.

TRADE NAME
The name or designation identifying or
distinguishing an enterprise
COLLECTIVE MARK
Any visible sign designated as such in the
application for registration and capable of
distinguishing the origin or any other common
characteristic, including the quality of goods or services
of different enterprises which use the sign under the
control of the registered owner of a collective mark
BASIC REQUISITES

1. There must be a visible sign

2. Capable of distinguishing the goods of an
enterprise
FUNCTIONS:

1. To indicate the origin of the goods to which

they are attached
2. To guarantee the standard of quality of the
goods; and
3. To advertise the goods
HOW ARE MARKS ACQUIRED?

The rights in a mark shall be acquired through

registration made validly in accordance with law
MARKS THAT CANNOT BE REGISTERED
1. Immoral, deceptive, or scandalous matter, or matter
which may 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
3. Consists of a name, portrait or signature identifying
a particular living individual except by his written
consent, or the name, signature, or portrait of a
deceased President of the Philippines, during the life
of his widow, if any except by written consent of the
widow
MARKS THAT CANNOT BE REGISTERED
4. Identical with a registered mark belonging to a
different proprietor or a mark with an earlier
filing or priority date
5. Generic terms for goods or services
6. Descriptive marks including characteristics of
goods like quality or quantity
7. Customary sign in everyday language
8. Color by itself
9. Shapes
 COLORABLE IMITATION
Refers to such similarity in form, content,
words, sound, meaning, special arrangement, or
general appearance of the trademark or tradename
with that of the other mark or tradename their
over-all presentation or in their essential,
substantive and distinctive parts as would likely
mislead or confuse persons in the ordinary course
of purchasing the genuine article.
 DOCTRINE OF SECONDARY MEANING
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

There must be exclusive and continuous use

for a period of at least 5 years.
RIGHTS CONFERRED:
1. The right to the exclusive use of the mark for
one’s own goods or services
2. The right to prevent others from the use of
the same mark for identical goods or services in
the course of trace
3. The right to the exclusive use of one’s already
registered mark even for goods or services into
which one’s venture expands, if used by others
for dissimilar products is likely to damage the
business interests of the first venturer
DURATION

Ten (10) years subject to indefinite renewal

for periods of ten years each
 THE RIGHTS IN A MARK SHALL BE ACQUIRED THROUGH
REGISTRATION WITH THE INTELLECTUAL PROPERTY OFFICE
(FILING DATE OF APPLICATION)

REGISTRATION ACTUAL USE

 Necessary before one  Prior use in the

can file an action for Philippines is not
infringement required before
registration
 There must be actual
use after registration
 Registration is not
necessary for filing a
case for unfair
competition
 INFRINGEMENT
1. The trademark being infringed is registered in the
Intellectual Property office; however, in
infringement of trade name, the same need not be
registered
2. Reproduced, counterfeited, copied or
colorably imitated by the infringer
3. Used in connected with the sale, offering for sale
or advertising of any goods, business or
services or applied to labels, signs, prints,
packages, wrappers, receptacles or
advertisements intended to be used upon or in
connection with such goods, business or services
4. Likely to cause confusion or mistake or to
deceive purchasers or others
5. Without the consent of the trademark or trade
name owner or assignee thereof
 TYPES OF CONFUSION
CONFUSION OF
CONFUSION OF GOODS
BUSINESS

When an otherwise Wherein the goods of the

prudent purchaser is parties are different but
the defendant’s products
induced to purchase one
can reasonably (although
product in the belief mistaken) be assumed to
that he is purchasing originate from the
another, in which case plaintiff, thus deceiving
defendant’s goods are the public into believing
then bought as the that there is some
plaintiff’s and its poor connection between the
quality reflects badly on plaintiff and the
the plaintiff’s reputation defendant which, in fact,
does not exist
TESTS IN DETERMINING SIMILARITY AND LIKELIHOOD OF CONFUSION IN
TRADEMARK RESEMBLANCE

DOMINANCY TEST HOLISTIC TEST

 Focuses on the  The entirety if the marks

similarity of the in question be considered
prevalent features of in resolving confusing
the competing similarity
trademarks which  Comparison of words is not
might cause confusion the only determining
or deception factor
 Focus not only on the
 Contains the main, predominant words but
essential or dominant also no the other features
features of another, appearing on both labels in
and confusion or order that he may draw
deception is likely to his conclusion whether one
result is confusingly similar to
the other
 UNFAIR COMPETITION
Employing deception or any other means
contrary to good faith by which a person passes off
his goods or business or services for those of one
who has already established goodwill thereto

Essential Elements:
1. Confusing similarity in the general appearance of
the goods; and
2. Fraud or intent to deceive the public and defraud a
competitor
 INFRINGEMENT OF
UNFAIR COMPETITION
TRADEMARK

1. Unauthorized use of 1. Involves passing off of

trademark one’s goods as those of
another and giving
2. Not necessary to
one’s goods the
establish fraudulent appearance of another
intent
2. Necessary to establish
3. Registration of fraudulent intent
trademark is 3. Prior registration is
necessary not necessary
4. Less broad than 4. Broader as it includes
unfair competition cases that are covered
not only by the IPC
but also by the Civil
Code
COPYRIGHT
COPYRIGHT

- The right granted by a statute to the proprietor of an

intellectual production to its exclusive use and
enjoyment to the extent specified in the statute
- Right over literary and artistic works which are
original intellectual creations in the literary and artistic
domain protected from the moment of creation
 PERSONS WHO ACQUIRE OWNERSHIP BY
INTELLECTUAL CREATION

1. The author with regard to his literary,

dramatic, historical, legal, philosophical,
scientific or other work;
2. The composer, as to his musical composition
3. The painter, sculptor, or other artist, with
respect to the product of his art
4. The scientist or technologist or any other
person with regard to his discovery or invention
WHEN RIGHTS OVER COPYRIGHTS ARE
CONFERRED?

- From the moment of creation

- The work is deemed created if something original
is expressed in a fixed manner
WHO OWNS THE COPYRIGHT?
a. One creator – creator, his heirs or assigns
b. Joint creation – co-authors shall be the original
owners of the copyright and in the absence of
agreement; their rights shall be governed by the
rules on co-ownership
c. Commissioned work – the person commissioning
owns the work; ownership of copyright remains with
the creator, unless there is a written stipulation to
the contrary
d. Audio-visual work – producer for purposes of
exhibition; for all other purposes, the producer, the
author of the scenario, the composer, the film
director, the photographic director and the author of
the work are the owners
WHO OWNS THE COPYRIGHT?
e. Pseudonymous and anonymous works –
unless the author is undisputably known, the
publisher shall be presumed to be the
representative of the author
f. Employee’s work during course of
employment – Employer, if the result of
regular functions or duties but the employee
owns it if it is not part of his duties
 DURATION OF COPYRIGHT
1. Literary Artistic Works and Derivative
Works - during the lifetime of the creator and
for 50 years after his death
2. Joined Creation – economic rights shall be
protected during the life of the last surviving
author and for 50 years after the death of the
last surviving author
3. Anonymous or a pseudonymous work –
until the end of 50 years following the date of
their first publication, commences from January
1 following the date of publication
4. Work of applied art – 25 years from the date
of making
 DURATION OF COPYRIGHT
e. Photographic works – 50 years from the
publication of the work, or from making if
unpublished (Same term given to audio-visual
works produced by photography or analogous
processes)
f. Broadcast – 20 years from the date of
broadcast
 COPYRIGHTABLE OBJECTS
LITERARY and ARTISTIC WORKS
 Books, pamphlets, articles and other writings

 Periodicals and newspapers

 Lectures, sermons, addresses, dissertations

prepared for oral delivery, whether or not
reduced in writing or other material form
 Letters

 Dramatic or dramatico-musical compositions;

choreographic works or entertainment in shows
 Musical compositions, with or without words

 Works of drawing, painting, architecture,

sculpture, engraving, lithography or other works
of art; models or designs for works of art
 COPYRIGHTABLE OBJECTS
LITERARY and ARTISTIC WORKS
 Illustrations, maps, plans, sketches, charts, and 3D
works relative to geography, topography, architecture
or science
 Drawings or plastic works of a scientific or technical
character
 Photographic works including works produced by a
process analogous to photography
 Audiovisual works and cinematographic works and
works produced by a process analogous to
cinematography or any process for making audio-
visual recordings
 Pictorial illustrations and advertisements
 Computer programs; and
 Other literary, scholarly, scientific and artistic works
 COPYRIGHTABLE OBJECTS

DERIVATIVE WORKS
 Dramatizations, translations, adaptations,
abridgments, arrangements and other alterations
of literary or artistic works; and
 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
 UNPROTECTED WORKS
1. 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 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 AUTHORS
ECONOMIC RIGHTS MORAL RIGHTS

Exclusive right to carry out, 1. Require that authorship

authorize or prevent the following: be attributed to him, in a
1. Reproduction of the work or prominent way, and with
substantial portion the public use of the
2. Dramatization, translation, work
adaptation
2. Make any alterations of
3. First public distribution of his work
the original
4. Rental of the original or a 3. Object to any distortion,
copy of audiovisual or mutilation or other
cinematographic work modification or other
5. Public display of the original derogatory action
or a copy of the work 4. Restrain the use of his
6. Public performance of the name with respect to any
work work not of his own
7. Other communication to the creation or in a distorted
public version of his work
 FAIR USE
 It is a privilege to use the copyrighted material in
a reasonable manner without the consent of the
copyright owner or as copying the theme or ideas
rather than their expression.

It is an exception to the copyright owner’s

monopoly of the use of the work to avoid stifling
“the very creativity which that law designed to
foster”
 FAIR USE
Fair use of a copyrighted work for criticism,
comment, news reporting, teaching including
multiple copies for classroom use, scholarship,
research and similar purposes is not an
infringement of copyright

Factors to consider whether use is fair or not:

1. Purpose and character of the use
2. Nature of the copyrighted work
3. Amount and substantiality of the portions used
4. Effect of the use upon the potential market of the
copyrighted work
 INFRINGEMENT

- When there is a piracy or substantial

reproduction
- If so much is taken that the value of the original
work is substantially diminished or the labors of
the original author are substantially and to an
injurious extent appropriated by another
(Habana vs. Robles – G.R. No. 131522 July 19,
1999)
 ACTS THAT DO NOT INFRINGE
COPYRIGHTS
 Recitation or performance of a work: made
accessible to the public, privately done, free of
charge and strictly for charitable or religious
institution
 Making quotations from a published work:
compatible with fair use, extent justified by the
purpose, source and name of the author
 Reproduction or communication to the public by
mass media on current political, social, economic,
scientific, or religious topic for information
purposes, not expressly reserved and source is
already indicated
 Reproduction and communication to the public of
literary, scientific or artistic works as part of
reports of current events
 ACTS THAT DO NOT INFRINGE
COPYRIGHTS
 Inclusion of work in a publication, broadcast, or
other communication to the public if made by
way of illustration for teaching purposes
compatible with fair use and source and name of
author must be mentioned
 Recording made in schools, universities or
educational institutions
 Use made of a work by or under the direction and
control of the government for public interest
compatible with fair use
 Public performance or the communication to the
public of a work in a place where not admission
fee is charged for charitable or educational
purpose only and the aim is not profit-making
 ACTS THAT DO NOT INFRINGE
COPYRIGHTS
 Public display of the original or a copy of the
work not made by means of a film, slide,
television image or otherwise
 Any use made of a work for the purpose of any
judicial proceedings; or for the giving of
professional advice by a legal practitioner
Trademark Any visible sign capable of
distinguishing the goods (trademark) or services
(service mark) of an enterprise and shall include a
stamped or marked container of goods.
Tradename The name or designation
identifying or distinguishing an enterprise.
Copyright Literary and artistic works which are
original intellectual creations in the literary and
artistic domain protected from the moment of their
creation.
Patentable Inventions Any technical solution of
a problem in any field of human activity which is
new, involves an inventive step and is industrially
applicable.