RA 3765

TRUTH IN LENDING ACT

• PURPOSE
To protect the public from lack of
awareness of the true cost of credit by requiring
from the creditor the disclosure of full
information incident to a credit transaction.
DISCLOSURE REQUIREMENT
Creditors are required to furnish to each person to whom credit is extended,
prior to the consummation of the transaction, a clear statement in writing setting
forth, to the extent applicable and in accordance with rules and regulations prescribed
by the Board, the following information:
1. the cash price or delivered price of the property or service to be acquired;
2. the amounts, if any, to be credited as down payment and/or trade-in;
3. the difference between the amounts set forth under clauses (1) and (2);
4. the charges, individually itemized, which are paid or to be paid by such person in
connection with the transaction but which are not incident to the extension of
credit;
5. the total amount to be financed;
6. the finance charge expressed in terms of pesos and centavos; and
7. the percentage that the finance bears to the total amount to be financed
expressed as a simple annual rate on the outstanding unpaid balance of the
obligation.
Q:WHO ARE THE LENDERS REQUIRED TO
DISCLOSE?
A:
• Banks and other financial institutions;
• Any person in the business of extending loans,
or selling or renting property or services on a
time, credit, or installment basis, either as
principal or as agent
Q:WHAT ARE THE EFFECTS IF THE CREDITOR FAILS TO DISCLOSEP
A: The credit transaction remains valid and enforceable, but the debtor
are afforded the following remedies:
• File a civil case for recovery of damages in the amount of Php 100
or of twice the finance charged required by the creditor, whichever
is greater, but not to exceed P2,000
• Must be brought within one year from the date of the occurrence
of the violation, in any court of competent jurisdiction
• If non-disclosure is willful, file a criminal case. Penalty is fine not
less than P1,000 or more than P5,000 or imprisonment for not less
than 6 months, nor more than one year or both.
• The lender will have no right to collect such charge or increases
thereof, even if stipulated in the promissory note (Development
Bank of the Philippines vs Arcilla, 462 SCRA 599).
EXAMPLES OF VIOLATIONS OF TRUTH IN LENDING
ACT:
• Requiring debtors to sign credit documents and
promissory notes in blank, and then unilaterally
filling them up later on(Spouses Silon vs.
PNB)
• A promissory note which grants the creditor the
power to unilaterally fix the interest rate means
that the promissory note does not contain a clear
statement in writing of the finance charge(UCPB
vs Veloso)
PROBLEM:
Jungkook went to Dynamite Bank and applied for a loan. The
bank manager made him simultaneously sign credit documents and a
promissory note. On the disclosure statement included in the credit
documents, there was no mention of penalty charges, but on the
promissory note the penalty charges were detailed.
On the first month that the loan was due, Jungkook failed to
pay on time. BTS
Bank sent him a statement of account for the total amount
due, which includes interest and penalty charges. Jungkook contests
the penalty charges and avers that he is not liable thereto since it
wasn't included on the disclosure statement.
Is Jungkook correct?
RA 9160

ANTI-MONEY LAUNDERING
ACT
WHAT IS MONEY LAUNDERING?
• activities intended to disguise the origins of
the proceeds of the crime through processes
that transform illegal inputs into apparently
legitimate sources.
PURPOSE OF AMLA
• To protect and preserve the integrity and
confidentiality of bank accounts and to ensure
that the Philippines shall not be used as a
money laundering site for the proceeds of any
unlawful activity.
MONEY LAUNDERING DEFINED
• committed by any person who, knowing that any monetary instrument or property
represents, involves, or relates to the proceeds of any unlawful activity:
• Transacts said monetary instrument or property;
• converts, transfers, disposes of, moves, acquires, possesses or Uses(UP-MD-CAT)
said monetary instrument or property;
• Conceals or disguises the true nature, source, location, disposition, movement or
ownership of or rights with respect to said monetary instrument or property;
• Attempts or conspires to commit money laundering offenses referred to in
paragraphs (a), (b) or (c);
• Aids, abets, assists in or counsels the commission of the money laundering
offenses referred to in paragraphs (a), (b) or (c) above;
• Performs or fails to perform any act as a result of which he facilitates the offense
of money laundering referred to in paragraphs (a), (b) or (c) above.

Money laundering is also committed by any covered person who, knowing

that a covered or suspicious transaction is required under this Act to be reported to
the Anti-Money Laundering Council (AMLC), fails to do so.
WHAT ARE UNLAWFUL ACTIVITIES?
1. Kidnapping for ransom.
2. Drug offenses (violation of specific provisions of the
Comprehensive Dangerous Drugs Act of 2002).
3. Graft and corrupt practices.
4. Plunder.
5. Robbery and extortion.
6. Jueteng and masiao.
7. Piracy on the high seas.
8. Qualified theft.
9. Swindling.
10. Smuggling.
11. E-commerce violations.
12. Hijacking, destructive arson and murder, including those
perpetrated by terrorists against non-combatants and similar
(civilian) targets.
13. Securities fraud.
14. Similar offenses punishable under the penal laws of foreign
countries.
15. Frauds and Illegal Transactions under Articles 213-216 RPC.
16. Forgeries and Conterfeiting.
17. Forestry violations.
18. Fisheries violations.
19. Firearms violations.
20. Fencing.
21. Caves protection law.
22. Carnapping.
23. Child Abuse.
24. Child Porno.
25. Malversation.
26. Mining laws.
27. Migrant Workers and OFWs.
28. Terrorism.
29. Terrorism Financing.
30. Wildlife Protection.
31. Bribery and Corruption of Public Officers.
32. Human Trafficking.
33. Intellectual Property Law violations.
34. Voyeurism (Photo and Video).
COVERED PERSONS
• Report to the AMLC all covered and suspicious
transactions within five(5) working days from
occurrence thereof
SAFE HARBOR PROVISION
• No administrative, criminal or civil
proceedings, shall lie against any person for
having made a covered or suspicious
transaction report in the regular performance
of his duties in good faith, whether or not
such reporting results in any criminal
prosecution under this Act or any other law.
COVERED PERSONS natural or juridical, refer to:
1. banks, non-banks, quasi-banks, trust entities, foreign exchange dealers,
pawnshops, money changers, remittance and transfer companies and
other similar entities and all other persons and their subsidiaries and
affiliates supervised or regulated by the Bangko Sentral ng Pilipinas
(BSP);
2. insurance companies, pre-need companies and all other persons
supervised or regulated by the Insurance Commission (IC);
3. (i) securities dealers, brokers, salesmen, investment houses and other
similar persons managing securities or rendering services as investment
agent, advisor, or consultant, (ii) mutual funds, close-end investment
companies, common trust funds, and other similar persons, and (iii)
other entities administering or otherwise dealing in currency,
commodities or financial derivatives based thereon, valuable objects,
cash substitutes and other similar monetary instruments or property
supervised or regulated by the Securities and Exchange Commission
(SEC);
4. jewelry dealers in precious metals, who, as a business, trade in
precious metals, for transactions in excess of One million pesos
(P1,000,000.00);
5. jewelry dealers in precious stones, who, as a business, trade in
precious stones, for transactions in excess of One million pesos
(P1,000,000.00);
6. company service providers which, as a business, provide any of
the following services to third parties: (i) acting as a formation
agent of juridical persons; (il) acting as (or arranging for another
person to act as) a director or corporate secretary of a company, a
partner of a partnership, or a similar position in relation to other
juridical persons; (ii) providing a registered office, business
address or accommodation, correspondence or administrative
address for a company, a partnership or any other legal person or
arrangement; and (iv) acting as (or arranging for another person
to act as) a nominee shareholder for another person; and
7. persons who provide any of the following services:(i) managing of client money,
securities or other assets; (ii) management of bank, savings or securities
accounts; (ii) organization of contributions for the creation, operation or
management of companies; and (iv) creation, operation or management of
juridical persons or arrangements, and buying and selling business entities.

Notwithstanding the foregoing, the term 'covered persons' shall exclude lawyers and
accountants acting as independent legal professionals in relation to information
concerning their clients or where disclosure of information would compromise client
confidences or the attorney-client relationship: Provided, That these lawyers and
accountants are authorized to practice in the Philippines and shall continue to be
subject to the provisions of their respective codes of conduct and/or professional
responsibility or any of its amendments.

8. casinos, including internet and ship-based casinos, with respect to their casino
cash transactions related to their gaming operations.
COVERED TRANSACTION
• Transaction, in cash or other equivalent monetary
instrument, involving a total amount in excess of
P500,000 (threshold amount) within one banking
day.
• For casinos: a single casino transaction involving
an amount in excess of Five million pesos
(P5,000,000.00) or its equivalent in any other
currency.
SUSPICIOUS TRANSACTION
A transaction with a covered institution, regardless of the amount
involved, where any of the following circumstances exists:
1. No Underlying legal or trade obligation, purpose, or economic
justification.
2. Client is not properly Identified.
3. Amount involved not Commensurate with client's business or financial
capacity.
4. Transaction Structured in order to avoid being subject of reportorial
requirements.
5. Transaction which Deviates from client's profile and/or client's past
transactions with covered institutions.
6. Transaction related to an Unlawful activity, including those committed or
about to be committed.
7. Similar or analogous transactions.
PREVENTIVE MEASURES AND OBLIGATIONS OF COVERED
PERSONS
• CUSTOMER IDENTIFICATION
Covered institutions shall establish and record the true
identity of its clients based on official documents. They shall
maintain a system of verifying the true identity of their clients
and, in case of corporate clients, require a system of verifying
their legal existence and organizational structure, as well as
the authority and identification of all persons purporting to
act on their behalf.
For trustee, nominee and agency accounts: Verify and
record the true and full identity of the person(s) on whose
behalf a transaction is being conducted.
MINIMUM INFORMATION DOCUMENTS REQUIRED FOR
CORPORATE AND JURIDICAL ENTITIES
1. Articles of Incorporation/Partnership;
2. By-laws;
3. Official address or principal business address;
4. List of directors/partners;
5. List of principal stockholders owning at least two percent
(2%) of the capital stock;
6. Contact numbers;
7. Beneficial owners, if any; and
8. Verification of the authority and identification of the
person purporting to act on behalf of the client.
RECORD KEEPING
• All records of all transactions of covered institutions shall
be maintained and safely stored for five (5) years from the
dates of transactions. Said records and files shall contain
the full and true identity of the owners or holders of the
accounts involved in the covered transactions and all other
customer identification documents.
• If closed account-at least five (5) years from the dates when
they were closed.
• If a money laundering case was filed-file must be retained
until it is confirmed that the case has been finally resolved
or terminated by the court.
• Prohibition against Certain Accounts. -
Covered institutions shall maintain accounts only in the true and full
name of the account owner or holder. The provisions of existing laws to the
contrary notwithstanding, anonymous accounts, accounts under fictitious
names, and all other similar accounts shall be absolutely prohibited.

No new accounts shall be opened and created without face-to-face

contact and full compliance with the minimum documentary requirements
for individual customers

Peso and foreign currency non-checking numbered accounts shall be

allowed: Provided, That the true identity of the customers of all peso and
foreign currency non-checking numbered accounts are satisfactorily
established based on official and other reliable documents and records, and
that the information and documents required under the provisions of these
Rules are obtained and recorded by the covered institution.
AMLC POWERS
Inquire into deposits or investments
Q: When?
• upon order of any competent court based on an ex parte application in
cases of violations of this Act, when it has been established that there is
probable cause that the deposits or investments, including related
accounts involved, are related to an unlawful activity or a money
laundering offense.
• under the Anti-Terror Law:
• Any property or funds that are in any way related to financing of terrorism
as defined and penalized under RA 10168
• Violation of Sections 4,6,7,10,11 or 12 of the Anti-Terrorism Law
• Property or funds of any person or persons in relation to whom there is
probable cause to believe that such person or persons are committing or
attempting or conspiring to commit, or participating in or facilitating the
financing of terrorism
NO COURT ORDER SHALL BE REQUIRED IN:
1. Kidnapping for ransom.
2. Drug offenses (violation of specific provisions of
the Comprehensive Dangerous Drugs Act of
2002).
3. Hijacking, destructive arson and murder,
including those perpetrated by terrorists against
non-combatants and similar (civilian) targets.
4. Similar foreign offenses.
5. AML's authority under the Anti-Terror Law
Freeze Order
Q: When?
• Upon a verified ex parte petition by the AMLC
and after determination that probable cause
exists that any monetary instrument or property
is in any way related to an unlawful activity as
defined in Section 3(i) hereof, the Court of
Appeals may issue a freeze order which shall be
effective immediately, for a period of 20 days.
• Under the Anti-Terror Law
ASSET FORFEITURE
• AMLC may institute civil forfeiture proceedings and all other
remedial proceedings through the Office of the Solicitor General

Q: When?
When there is is a covered transaction or suspicious
transaction report made and the court has, in a petition filed for the
purpose, ordered the seizure of any monetary instrument or property,
in whole or in part, directly or indirectly, related to said report.

If the monetary instrument or property to be forfeited cannot

be located, the convicted may be ordered to pay the value of the
monetary instrument or property in lieu of forfeiture.
UPDATES ON AMLA
• RA 11521 which was signed into law on
January 29,2021, introduces amendments to
AMLA in a bid to prevent the country from
being included on the "gray list" or countries
with weak policies against dirty money by the
Financial Action Task Force.
SALIENT AMENDMENTS TO AMLA
• Included transactions in excess of P500,000 of all Philippine
offshore gaming operators (POGOs) within the purview of AMLA.
• Included real estate brokers and developers as "covered persons,"
but only for single cash transactions involving amounts in excess of
P7.5 million, effectively narrowing the burden of reportorial
requirements for high-risk transactions.
• Included tax crimes with a threshold in excess of P25 million and
violations of the Trade Management Act on the financing of the
proliferation of weapons of mass destruction as a predicate offense
to money laundering and set a threshold to excess of P25 million.
• Granted the Anti-Money Laundering Council (AMLC) the
following additional powers:
1. Authority to require, receive, and analyze covered or
suspicious transaction reports from covered persons.
2. Issue subpoenas and conduct search and seizures of
suspicious accounts.
3. Preserve, manage, or dispose assets pursuant to a
freeze order, preservation order, or judgment of forfeiture.
4. To implement targeted financial sanctions in relation
to the proliferation of weapons of mass destruction and their
financing.
• Adopted information security and confidentiality
proposals, safeguarding information processed
through AMLC and deterring the council's staff
from leaking or misusing information.
• The bicameral committee likewise agreed to
adopt the Senate proposals related to terror
financing, such.as AMLC's power to implement
targeted financial sanctions against individuals
involved in terror financing. (Source: Rappler)
RA 8293

INTELLECTUAL PROPERTY LAW

Intellectual property defined
• Intangible assets resulting from the creative work of an
individual or organization
• Creations of the mind, such as:
• Inventions
• Literary and artistic works;
• Symbols, names, images and designs used in
commerce.
The legal rights which result from intellectual
activities in the industrial, scientific, literary and artistic
fields.
Constitutional basis
• Article 14, Section 13, 1987 Constitution
"The State shall protect and secure the exclusive
rights of scientists, inventors, artists, and other
gifted citizens to their intellectual property and
creations, particularly when beneficial to the
people, for such period as may be provided by
law."
Coverage of intellectual property rights
1. Copyright and Related Rights;
2. Trademarks and Service Marks;
3. Geographic indications;
4. Industrial designs;
5. Patents;
6. Layout designs (Topographies) of Integrated
Circuits;
7. Protection of Undisclosed Information (TRIPS).
BASIC PATENT PRINCIPLES
1. TERRITORIALITY - patents are only valid in the country or
region in which they have been granted
2. FIRST-TO-FILE -applicant who files first will get the patent
3. DISCLOSURE -applicant shall disclose the invention in a
manner sufficiently clear and complete
- Quid pro quo principle - protection in exchange for
disclosure
4. CONDITIONAL - patents are granted only upon compliance
with the criteria of patentability
5. LIMITED RIGHTS
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. It
may be, or may relate to, a product, or process,
or an improvement of any of the foregoing.(Sec.
21, IPC)
Criteria for patentability
1. Novelty- An invention shall not be considered
new if it forms part of a prior art
2. 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. This means
an invention is not merely theoretical, but also
has a practical purpose.
PRIOR ART
• Everything which has been made available
to the public anywhere in the world, before
the filing date or the priority date of the
application claiming the invention; and
• The whole contents of an earlier published
Philippine application or application with
earlier priority date of a different inventor.
How much information from prior art is
sufficient?
• • "The defense of lack of novelty (i.e.
'anticipation') can only be established by a
single prior art reference which discloses each
and every element of the claimed invention.
Structural Rubber Products Co. v. Park Rubber
Co., 749 F.2d 707,715-16,223 U.S.P.Q. (BNA)
1264(Fed. Cir. 1984)
Rule: When a work has already been made available to the public, it shall be
non-patentable for absence of novelty.
• Exception: Doctrine of Non-Prejudicial Disclosure
the disclosure of information contained in the application during the
12-month period before the filing date or the priority date of the application
if such disclosure was made by:
1. The inventor;
2. A patent office and the information was contained:
a) In another application filed by the inventor and should have not have
been disclosed by the office, or
b) In an application filed without the knowledge or consent of the inventor
by a third party which obtained the information directly or indirectly
from the inventor;
3. A third party who obtained the information directly or indirectly from
the inventor (IPC, Sec. 25)
Test of Non-Obviousness
• If any person possessing ordinary skill in the art was able to
draw the inferences and he constructs that the supposed
inventor drew from prior art, then the latter did not really
invent it
• Person skilled in the art-Ordinary practitioner (fictional
person)
a. Has access and understanding of all the prior art
b. Aware of common general knowledge in the specific art
c. Observes developments in the related technical field
-could be a team; need not have inventive ability
Non-patentable inventions
1. Plant varieties or animal breeds or essentially biological process for the
production of plants or animals. This provision shall not apply to micro-
organisms and non-biological and microbiological processes;
2. Aesthetic creations;
3. Discoveries, scientific theories and mathematical methods;
4. Schemes, rules and methods of performing mental acts, playing games
or doing business, and programs for computers;
5. Anything which is contrary to public order or morality (IPC as amended
by R.A. 9502, Sec. 22);
6. Methods for treatment of the human or animal body; and
7. In the case of drugs and medicines, mere discovery of a new form or
new property of a known substance which does not result in the
enhancement of the efficacy of that substance
• IS THE COVID-19 VACCINE PATENTABLE?
OWNERSHIP OF PATENTS
• SECTION 28. Right to a Patent. - The right to a
patent belongs to the inventor, his heirs, or
assigns. When two (2) or more persons have
jointly made an invention, the right to a
patent shall belong to them jointly.
May patent rights be assigned or transferred?
• YES. For a valid assignment of patent rights,
the assignment must be in writing and must
be duly notarized. (IPC, Sec. 105)
FIRST-TO-FILE RULE
• If two (2) or more persons have made the
invention separately and independently of each
other, the right to the patent shall belong to the
person who filed an application for such
invention, or

• Where two or more applications are filed for the

same invention, to the applicant which has the
earliest filing date (IC, Sec. 29).
INVENTIONS CREATED PURSUANT TO A COMMISSION
• Pursuant to a commission: The person who commissions the work
shall own the patent, unless otherwise provided in the contract.

• Pursuant to employment: In case the employee made the

invention in the course of his employment contract, the patent shall
belong to:
a. 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;
b. The employer, if the inventive activity is the result of the
performance of his regularly-assigned duties, unless there is an
agreement, express or implied, to the contrary (IPC, Sec. 30).
Patent registration
The procedure for the grant of patent may be summarized as
follows:
• Filing of the application
• Accordance of the filing date
• Formality examination
• Classification and Search
• Publication of application
• Substantive examination
• Grant of Patent
• Publication upon grant
• Issuance of certificate
Patent application
SECTION 32. The Application. - 32.1. The patent
application shall be in Filipino or English and shall
contain the following:
• A request for the grant of a patent;
• A description of the invention;
• Drawings necessary for the understanding of the
invention;
• One or more claims; and
• An abstract.
Grounds for cancellation of patent
Any interested party may petition to cancel any patent
or any claim or parts of a claim any of the following grounds:
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 (IPC, Sec. 61.1);
4. Patent is found invalid in an action for infringement (IPC,
Sec. 82); and
5. The patent includes matters outside the scope of the
disclosure contained in the application. (IPC, Sec 21,
Regulations on Inter Partes Proceeding, Sec.1)
Patent Application by Persons Not Having the Right to a
Patent
Remedies of persons with a right to a patent
If a person other than the applicant is declared by final
court order or decision as having the right to a patent, he may
within 3 months after such decision has become final:
1. Prosecute the application as his own
2. File a new patent application
3. Request the application to be refused; or
4. Seek cancellation of the patent (IPC, Sec. 67.1).
Time to file action: within one (1) year from the date of
publication
Remedies of the True and Actual Inventor
• If a person, who was deprived of the patent without his
consent or through fraud is declared by final court
order or decision to be the true and actual inventor,
the court shall order for his substitution as patentee, or
at the option of the true inventor, cancel the patent,
and award actual and other damages in his favor if
warranted by the circumstances.

Time to file action: within one (1) year from the

date of publication
Rights conferred by patent
1. In case of Product - Right to restrain, prohibit and prevent
any unauthorized person or entity from making, using,
offering for sale, selling or importing(MUOSI) the product.
2. In case of Process - 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.
(IPC, Sec. 71)
3. Right to assign the patent, to transfer by succession, and
to conclude licensing contracts. (IPC, Sec. 71.2)
The rights conferred by a patent application take effect
after publication in the Official Gazette. (IPC, Sec 46)
LIMITATIONS OF PATENT RIGHTS
The owner of a patent has no right to prevent third parties from
making, using, offering for sale, selling or importing a patented product in the
following circumstances:
a. Using a patented product after it has been put on the market in
the Philippines by the owner of the product, or with his express consent.
• In case of drugs or medicines, the said limitation applies after a drug or
medicine has been introduced in the Philippines or anywhere else in the
world by the patent owner, or by any party authorized to use the
invention. This allows parallel importation for drugs and medicines.
• The right to import the drugs and medicines shall be available to any
government agency or any private third party (IPC, Sec. 72.1, as amended
by RA No. 9502)
 b. Where the act is done privately and on a non-
commercial scale or for a non-commercial purpose (IPC, Sec.
72.2).
c. Exclusively for experimental use of the invention for
scientific purposes or educational purposes. (IPC, Sec. 72.3).
d. In the case of drugs and medicines, where the act
includes testing, using, making or selling the invention
including any data related thereto, solely for purposes
reasonably related to the development and submission of
information and issuance of approvals by government
regulatory agencies required under any law of the Philippines
or of another country that regulates the manufacture,
construction, use or sale of any product.
OTHER LIMITATIONS
• Prior user
Person other than the applicant, who in good
faith, started using the invention in the Philippines,
or undertaken serious preparations to use the
same, before the filing date or priority date of the
application shall have the right to continue the use
thereof, but this right shall only be transferred or
assigned further with his enterprise or business
(IPC, Sec. 73).
• Q: X invented a device which, through the use of
noise, can recharge a cellphone battery. He
applied for and was granted a patent on his
device, effective within the Philippines. As it turns
out, a year before the grant of X's patent, Y, also
an inventor, invented a similar device which he
used in his cellphone business in Manila. But X
files an injunctive suit against Y to stop him from
using the device on the ground of patent
infringement. Will the suit prosper? (2011 Bar)
Other limitations: Use by government
74.1. A Government agency or third person authorized by the Government
may exploit the invention even without agreement of the patent owner
where:
a. The public interest, in particular, national security, nutrition, health or
the development of other sectors, as determined by the appropriate
agency of the government, so requires; or
b. A judicial or administrative body has determined that the manner of
exploitation, by the owner of the patent or his licensee is anti-
competitive; or
c. In the case of drugs and medicines, there is a national emergency or
other circumstance of extreme urgency requiring the use of the
invention; or
d. In the case of drugs and medicines, there is public non-commercial use
of the patent by the patentee, without satisfactory reason; or
e. In the case of drugs and medicines, the demand for the patented article
in the Philippines is not being met to an adequate extent and on
reasonable terms, as determined by the Secretary of the Department of
Health.
Doctrine of Exhaustion
• Also known as the doctrine of first sale, it
provides that the patent holder has control of
the first sale of his invention. He has the
opportunity to receive the full consideration
for his invention from his sale. Hence, he
exhausts his rights in the future control of his
invention.
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. (Sec. 76)
A patent maybe infringed either:
• Literally, or
• By equivalents
Literal infringement
• Literal infringement exists if an accused device
falls directly within the scope of properly
interpreted claims.
Doctrine of equivalents
• An infringement also occurs when a device
appropriates a prior invention by incorporating its
innovative concept and, despite some
modification and change, performs substantially
the same function in substantially the same way
to achieve substantially the same result.

function-means- and-result test

REMEDIES OF THE OWNERS OF THE PATENT AGAINST
INFRINGERS
1. Civil action for infringement
2. Criminal action for infringement - If the infringement
is repeated; The criminal action prescribes in three (3)
years from the commission of the crime
3. Administrative remedy- Where the amount of
damages claimed is not less than
P200,000.00
4. Destruction of Infringing material-upon court order
DEFENSES IN ACTION FOR INFRINGEMENT
1. Invalidity of the patent (IPC, Sec. 81);
2. Any of the grounds for cancellation of patents:
• That what is claimed as the invention is not new or
patentable
• That 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
• That the patent is contrary to public order or morality
(IPC, Sec. 61).
3. Prescription
TRADEMARK
TRADEMARK
• Mark means 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
Requirements for a mark to be registered
• A visible sign and
• Capable of distinguishing one's goods and
services from another.
Visible sign
• Words
• Letters
• Numerals
• Figures/Pictures
• Shapes
• Colors
• Logos
• Three dimensional
• Objects
• Combinations
Not visible
• Scents
• Sounds
Distinctiveness of a mark
Trademarks are divided into five different categories, which
are ranked by distinctiveness.
• Fanciful trademarks are made-up words which are invented to be
used as a trademark name
• Arbitrary trademarks are words that have a real, common meaning
but they are completely unrelated to the product or service.
• Suggestive trademarks are named after a characteristic of the
product or service.
• Descriptive trademarks are a description of the product or service
• Generic trademarks cannot be protected as they are simply a
generic description of the product or service.
Marks which may be registered
• Any word, name, symbol, emblem, device,
figure, sign, phrase, or any combination
thereof except those enumerated under
Section 123, IPC.
Trademark vs. Trade name
TRADEMARK TRADENAME
Identifies or Identifies or
distinguishes the goods distinguishes the
or services business or enterprise
Registration is required Registration is not
required
Collective mark
• mark or trade-name used by the members of
a cooperative, an association or other
collective group or organization (e.g. Halal)
RIGHTS OVER A TRADEMARK CONFERRED
• The rights in a mark shall be acquired through
registration with the
IPO. (IPC, Sec. 122) The filing date of
application is the operative act to acquire
trademark rights.
• Prior use is no longer a condition precedent
for registration of trademark, service mark or
trade name.
ACQUISITION OF OWNERSHIP OF MARK
• The rights in a mark shall be acquired through
registration but the right to register a
trademark should be based on ownership.
• An exclusive distributor does not acquire any
proprietary interest in the principal's
trademark and cannot register it in his own
name unless it is has been validly assigned to
him
REGISTRATION
• Prior use is not a requirement but there must
be actual use after application
• Declaration of Actual Use - within three (3)
years from filing of the application
DURATION OR EFFECTIVITY OF TRADEMARK
REGISTRATION
• 10 years, subject to indefinite renewals of 10 years
each.
• The registrant is required to file a declaration of actual
use and evidence to that effect, or show valid reasons
based on the existence of obstacles to such use, within
one (1) year from the fifth anniversary of the date of
the registration of the mark. Otherwise, the mark shall
be removed from the Register by the IPO. (IPC, Secs.
145 and 146)
NON-REGISTRABLE MARKS
• Immoral, deceptive, or scandalous matters
• Matter which may disparage or falsely suggest
a connection with persons, etc.
• Contrary to public order or morality
• Flags/coat of arms of nations
- Names, portraits or signature of
living persons
Exception: with consent
• Names, portraits or signature of a deceased
President of the Philippines
Exception: with written consent of his/her
living widow
• Identical with a registered mark belonging to a
different proprietor or a mark with an earlier
filing or priority date, in respect of:
a. The same goods or services, or
b. Closely related goods or services, or
c. If it nearly resembles such a mark as to be
likely to deceive or cause confusion;
• *FIRST-TO-FILE RULE
• Misleading marks Sec. 123.1 (g)
• Generic terms [signs or of indications that have become
customary or usual to designate the goods or services in
• everyday language or in bona fide and established trade
practice] Sec. 123.1(h) and (i)
• Descriptive terms [signs or of indications that may serve in
trade to designate the kind, quality, quantity, intended
• purpose, value, geographical origin, time or production or
the goods or rendering of the services, or other
characteristics of the goods or services] Sec. 123.1(j)
• Color alone;
• Shapes dictated by technical factors
• Identical with an internationally well-known
mark, whether or not it is registered here,
used for identical or similar goods or services;
• Identical with an internationally well-known
mark which is registered in the Philippines
with respect to non-similar goods or services.
Provided, that the interests of the owner of
the registered mark are likely to be damaged
by such use;
RIGHTS OF A TRADEMARK OWNER
• Right to exclusive use of the mark in connection
with one's own goods or services resulting in
likelihood of confusion
• Right to prevent others from use of an identical
mark for the same, similar or related goods or
services. (Sec.147)
TERRITORIALITY PRINCIPLE: Trademark
registration abroad shall not be valid and binding
here in the Philippines
Exception: Well-known marks, bad faith
TRADEMARK INFRINGEMENT
• Use without consent of the trademark owner
of any reproduction, counterfeit, copy or
colorable limitation of any registered mark or
trade name. Such use is likely to cause
confusion or mistake or to deceive purchasers
or others as to the source or origin of such
goods or services, or Identity of such business.
TRADEMARK INFRINGEMENT
Elements:
1. Ownership of a trademark through registration
2. That the trademark is reproduced, counterfeited,
copied, or colorably imitated by another
3. No consent by the trademark owner or assignee
4. Use in connection with the sale, offering for sale, or
advertising of any such goods, business or services or
those related thereto
5. Likelihood of Confusion
COLORABLE IMITATION
• such a close or ingenious imitation as to be
calculated to deceive ordinary purchasers, or
such resemblance of the infringing mark to
the original as to deceive an ordinary
purchaser giving such attention as a purchaser
usually gives, and to cause him to purchase
the one supposing it to be the other
• Counterfeiting colorable imitation
Likelihood of confusion
Types of confusion
• Confusion of goods- As to the goods themselves
• Confusion of business- As to the source or origin
of such goods
– Wherein the goods of the parties are different but the
defendant's product can reasonably be assumed to
originate from the plaintiff thereby deceiving the
public into believing that there is some connection
between the plaintiff and defendant, which in fact,
does not exist.
Tests of confusion
• Dominancy test- focuses on the prevalent
features of the competing marks
• Totality test- determined on the basis of
visual, aural, connotative comparisons and
overall impressions engendered by the marks
in controversy as they are encountered in the
marketplace.
Other factors
Idem Sonans Rule - aural effects of the words and
letters contained in the marks are also considered in
determining the issue of confusing similarity
Examples:
• "Pycogenol" vs. "PCO-GENOL" (Prosource vs. Horphag)
• "Dermaline" vs. "Dermalin" (Dermaline Inc. vs. Myra
Pharmaceuticals)
• "Nanny" vs. "Nan" (Nestle S.A. vs. Dy Jr.)
Doctrine of secondary meaning
• This doctrine is to the effect that a word or
phrase originally incapable of exclusive
appropriation with reference to an article on the
market, because geographically or otherwise
descriptive, might nevertheless have been used
so long and so exclusively by one producer with
reference to his article that, in that trade and to
that branch of the purchasing public, the word or
phrase has come to mean that the article was his
product.
De la sale Montessori International of Malolos, Inc. v. De La
Salle Brothers Inc.
FACTS:
• Petitioner De La Salle Montessori International of Malolos,
Inc. was asked by respondents De La Salle Brothers, Inc., De
La Salle University, Inc., La Salle Academy, Inc., De La Salle-
Santiago Zobel School, Inc. (formerly De La Salle-South,
Inc.), and De La Salle Canlubang, Inc. (formerly De La Salle
University-Canlubang, Inc.) to change its corporate name.
Alleged misleading or confusingly similar.
Petitioner's Argument:
• Respondents cannot claim the exclusive use "De La Salle"
• because of the ruling in the Lyceum of the Philippines case.
ISSUES
• Whether there is confusing similarity in
corporate names?
• Whether the Lyceum of the Philippines case is
applicable?
RULING
• There is a confusing similarity between petitioner's and
respondents' corporate names. While these corporate
names are not identical, it is evident that the phrase
"De La Salle" is the dominant phrase used.
• Test is whether the similarity is such as to mislead a
person using ordinary care and discrimination
• Similarity in in the parties' names but also the business
they are engaged in
• Proof of actual confusion not needed, it is enough that
confusion is probable or likely to occur.
Unfair competition
• It is the passing off (or palming off) or
attempting to pass off upon the public of the
goods or business of one person as the goods
or business of another with the end and
probable effect of deceiving the public.
TRADEMARK INFRINGEMENT UNFAIR COMPETITION
Unauthorized use of a The passing off of one’s goods
trademark as those of another.
Fraudulent intent is Fraudulent intent is essential.
unnecessary
GR: Prior registration of the Registration is not necessary.
trademark is a prerequisite to
the action.
XPN: Well-known marks
Remedies and Jurisdiction
Administrative action - IPO-BLA, concurrent with
RTC-SCCs
• Civil Action, RTC-SCC concurrent with IPO-BLA
• Criminal Action, exclusive with RTC-SCC
– 2-5 years imprisonment
– P50,000-P200,000 in fine
COPYRIGHT
• A right over literary and artistic works which
are original intellectual creations in the
literary and artistic domain protected from the
moment of creation
Copyrightable works

• 1. Literary and Artistic Works

a. Books, pamphlets, articles and other writings
b. Lectures, sermons, addresses, dissertations prepared
for Oral delivery, whether or not reduced in writing or
other material form
c. Letters (shall belong to the writer)
d. Dramatic, choreographic works
e. Musical compositions
f. Works of Art
g. Periodicals and Newspapers
h. Works relative to Geography, topography,
architecture or science
i. Works of Applied art
j. Works of a Scientific or technical character
k. Photographic works
l. Audiovisual works and cinematographic
works
m. Pictorial illustrations and advertisements
n. Computer programs; and
o. Other literary, scholarly, scientific and artistic
works (IPC, Sec. 172.1).
2. Derivative Works
a. Dramatizations, translations, adaptations,
abridgements, 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 or arrangement of
their contents (IC, Sec. 173).
NON-COPYRIGHTABLE WORKS
1. Idea, procedure, system, method or operation, concept, principle,
discovery or mere data as such
2. News of the day and other items of press information
3. Any official text of a legislative, administrative or legal nature, as well as
any official translation thereof
4. Pleadings
5. Decisions of courts and tribunals - this refers to original decisions and
not to annotated decisions such as the SCRA or SCAD as these already
fall under the classification of derivative works, hence copyrightable
6. Any work of the government of the Philippines
7. TV programs, format of TV programs (Joaquin v. Drilon, G.R. No. 108946,
Jan. 28, 1999)
8. Systems of bookkeeping; and
9. Statutes.
ARE TELEPHONE DIRECTORIES COPYRIGHTABLE?
• NO. Directories are not copyrightable and therefore the use of
them does not constitute infringement. The Intellectual Property
Code mandates originality as a prerequisite for copyright
protection. This requirement necessitates independent creation
plus a modicum of creativity.
• A compilation is not copyrightable per se, but is copyrightable only
if its facts have been "selected, coordinated, or arranged in such a
way that the resulting work as a whole constitutes an original work
of authorship." Thus, the statute envisions that some ways of
selecting, coordinating, and arranging data are not sufficiently
original to trigger copyright protection. Even a compilation that is
copyrightable receives only limited protection, for the copyright
does not extend to facts contained in the compilation
Rights of copyright owners
1. Economic rights - The right to carry out, authorize or
prevent the following acts:
• Reproduction of the work or substantial portion thereof
• Carry-out derivative work (dramatization, translation,
adaptation, abridgement, arrangement or other
transformation of the work)
• First distribution of the original and each copy of the work
by sale or other forms of transfer of ownership
• Rental right
• Public display
• Public performance
• Other communications to the public.
2. Moral rights - For reasons of professionalism and propriety,
the author has the right:
a. To require that the authorship of the works be attributed
to him (attribution right/paternity right)
b. To make any alterations of his work prior to, or to
withhold it from publication
c. To preserve integrity of work, object to any distortion,
mutilation or other modification which would be
prejudicial to his honor or reputation; and
d. To restrain the use of his name with respect to any work
not of his own creation or in a distorted version of his
work(right against false attribution) (IPC, Sec. 193).
Duration of moral rights
• "During the lifetime of the author and in
perpetuity after his death" - Paternity
Right/Right of Attribution

• Coterminous with Economic Rights -Alteration

and Non-Publication Right; Right to
Preservation of Integrity; and Right against
False Attribution
Expiration Of Copyright
• Transfers to public domain
• Examples: Pride and Prejudice, The Lizzie
Bennet Diaries
Copyright infringement
Elements:
> Ownership of a valid copyright
– Proof of Ownership: Sec. 218 - Affidavit Evidence
> Exercise of any of the exclusive economic
rights in Section 177 without the consent of the
copyright owner
•UNLESS: FAIR USE
Fair use exception
• fair use for criticism, comment, news
reporting, teaching [C-C-N-T] including limited
[multiple] number of copies for classroom use,
scholarship, research and similar purposes
[CSR]. (Sec. 185)
• Factors to be considered in determining fair
use (Sec.185)
1. Purpose & character of the use
2. Nature of the copyrighted work
3. Amount & substantiality of the portion used
in relation to the copyrighted work as a
whole; &
4. Effect of the use upon the potential market
for or value of the copyrighted work.
Who are liable for infringement?
a. Directly commits an infringement;
b. Benefits from the infringing activity of another
person who commits an infringement if the
person benefiting has been given notice of the
infringing activity and has the right and ability to
control the activities of the other person;
c. With knowledge of infringing activity, induces,
causes or materially contributes to the infringing
conduct of another (IPC, Sec. 216, as amended
by R.A. No. 10372).
 COPYRIGHT INFRINGEMENT PLAGIARISM
The unauthorized use of The use of another’s
copyrighted material in a information, language, or
manner that violates one of the writing, when done without
copyright owner’s exclusive prior acknowledgment of the
rights, such as the right to original source.
reproduce or perform the
copyrighted work, or to make
derivative works that build
upon it.
Remedies in case of Copyright Infringement
1. Injunction
2. Damages, including legal costs and other expenses, as he
may have incurred due to the infringement as well as the
profits the infringer may have made due to such
infringement
3. Impounding during the pendency of the action sales
invoices and other documents evidencing sales
4. Destruction without any compensation all infringing
copies
5. Moral and Exemplary damages (IPC, Sec. 216.1); or
6. Seizure and impounding of any article, which may serve as
evidence in the court proceedings. (IPC, Sec. 216.2)
 Differences between Copyright, Trademark and
Patents
BASIS PATENT TRADEMARK COPYRIGHT
Intellectual Technical solution to a Any visible sign capable Literary and artistic
Rights problem in any field of of distinguishing the works.
human activity which is goods (trademark) or
new (novel invention) services (service mark)
and industrially of an enterprise must
applicable. be registered.
Term of 20 years from filing 10 years and renewable It depends on the
protection date of application upon expiration. type of work.
(generally 50 years)
 BASIS PATENT TRADEMARK COPYRIGHT
Office where Bureau of Patents, Bureau of Not required;
registered Intellectual Trademarks, option at the
Property office Intellectual National Library or
(IPO) Property office IPO
(IPO)
RA 10173

DATA PRIVACY LAW

Republic Act No. 10173
• August 15, 2012 the Data privacy Act was
passed.
• Took effect on September 9, 2016
• It is a comprehensive and strict privacy
legislation "to protect the fundamental human
right of privacy, of communication while
ensuring free flow of information to promote
innovation and growth." (Section 2)
Right to privacy
• Not expressly but impliedly provided in the
1987 Constitution
• While "right to privacy" is not stated as one of
the fundamental rights, it can be inferred from
several provisions of the Constitution.
Right to privacy
• The right to privacy is one of the most
threatened rights of man living in a mass
society.
• The threats emanate from various sources--
governments, journalists, employers, social
scientists, etc. (Ople vs. Torres, July 23, 1998)
Privacy of Communication
• The privacy of communication and
correspondence shall be inviolable except upon
lawful order of the court, or when public safety
or order requires otherwise, as prescribed by law.
• Any evidence obtained in violation of this or the
preceding section shall be inadmissible for any
purpose in any proceeding. (Section 3, Art. III,
Constitution)
Zulueta vs. Court of Appeals,
February 20, 1996
• •A person, by contracting marriage, does not
shed his/her integrity or his right to privacy as
an individual and the constitutional protection
is ever available to him or to her.
Republic Act No. 4200
• It shall be unlawful for any person, not being
authorized by all the parties to any private
communication or spoken word, to tap any
wire or cable, or by using any other device or
arrangement, to secretly overhear, intercept,
or record such communication.
Any person may be held liable:
• by imprisonment for not less than 6 months or
more than 6 years
• and with the accessory penalty of perpetual
absolute disqualification from public office if the
offender be a public official at the time of the
commission of the offense, and,
• if the offender is an alien he shall be subject to
deportation proceedings.
(Section 2, R. A. 4200)
Court Order - Sec. 8, RA 9372
• The written order of the authorizing division of
the Court of Appeals to track down, tap, listen to,
intercept, and record communications, messages,
conversations, discussions, or spoken or written
words of any person suspected of the crime of
terrorism or the crime of conspiracy to commit
terrorism shall only be granted by the authorizing
division of the Court of Appeals.
Surveillance of Suspects (Sec. 16, R.A. 11479)
• a law enforcement agent or a military
personnel may upon a written order of the
Court of Appeals secretly wiretap, overhear
and listen to all forms of communications of
suspected terrorists.
Data Privacy
• The right of an individual not to have private
information about himself disclosed,
and
• to live freely from surveillance and intrusion.
Scope: (Section 4) - This Act applies to:
• the processing of all types of personal
information and to
• any natural and juridical person involved in
personal information processing
Processing - Section 3(j)
• refers to any operation or any set of operations performed upon personal
information including, but not limited to the:
• collection,
• recording,
• organization,
• storage,
• updating or modification,
• retrieval,
• consultation,
• use,
• consolidation,
• blocking,
• erasure or destruction of data.
Data Breach via Zoom
• Teacher Mary conducted an online class via
zoom
• Thereafter she posted in her fb page the
pictures of her students
• One of her students was kidnapped because
the kidnappers got an idea where he lives due
to the fb posts of Teacher Mary.
Personal information - Section 3(g)
• refers to any information whether recorded in
a material form or not, from which the
identity of an individual is apparent or can be
reasonably and directly ascertained by the
entity holding the information, or when put
together with other information would
directly and certainly identify an individual.
Personal information controller - Section 3 (h)
refers to a person or organization who controls the
• collection,
• holding,
• processing or use of personal information,
• including a person or organization who instructs another person or
organization to
• collect,
• hold,
• process,
• use,
• transfer or disclose personal information on his or her behalf.
Privileged information - Section 3(k)
• refers to any and all forms of data which
under the Rules of Court and other pertinent
laws constitute privileged communication.
Penalties - Section 25
(b) The unauthorized processing of personal
sensitive information shall be penalized by
• imprisonment ranging from three (3) years to
six (6) years and
• a fine of not less than five hundred thousand
pesos (Php500,000.00) but not more than four
million pesos (Php4,000,000.00).
Data subject - Section 3(c)
• refers to an individual whose personal
information is processed.
Rights of the Data Subject - Section 16
• (a) Be informed whether personal information
pertaining to him or her shall be, are being or
have been processed;
e.g. recording of conversations
(b) Be furnished the information before the entry of his or her personal
information into the processing system of the personal information controller,
or at the next practical opportunity:
• (1) Description of the personal information to be entered into the system;
• (2) Purposes for which they are being or are to be processed;
• (3) Scope and method of the personal information processing;
• (4) The recipients or classes of recipients to whom they are or may be
disclosed;
• (5) Methods utilized for automated access, if the same is allowed by the
data subject, and the extent to which such access is authorized;
• (6) The identity and contact details of the personal information controller
or its representative;
• (7) The period for which the information will be stored; and
• (8) The existence of their rights, i.e., to access, correction, as well as the
right to lodge a complaint before the Commission.
(c) Dispute the inaccuracy or error in the personal information and
have the personal information controller correct it immediately and
accordingly, unless the request is vexatious or otherwise unreasonable.

(d) Suspend, withdraw or order the blocking, removal or destruction of

his or her personal information from the personal information
controller's filing system upon discovery and substantial proof that the
personal information are incomplete, outdated, false, unlawfully
obtained, used for unauthorized purposes or are no longer necessary
for the purposes for which they were collected.

(e) Be indemnified for any damages sustained due to such inaccurate,

incomplete, outdated, false, unlawfully obtained or unauthorized use
of personal information.
Responsibility of Heads of Agencies - Section 22
• All sensitive personal information maintained by the
government, its agencies and instrumentalities shall be
secured, as far as practicable, with the use of the most
appropriate standard recognized by the information and
communications technology industry, and as recommended
by the Commission.

• The head of each government agency or instrumentality

shall be responsible for complying with the security
requirements mentioned herein while the Commission
shall monitor the compliance and may recommend the
necessary action in order to satisfy the minimum standards.
Data Protection Officer
• You should assign a DPO if you are a natural or
juridical person or any other body in the
government or private sector engaged in the
processing of personal data of individuals
living within and outside the Philippines.
• An individual PIC or PIP shall be a de facto
DPO.
What should you look for in a DPO?
• DPO should have expertise in relevant privacy or
data protection policies and practices.
• He or she should have sufficient understanding of
the processing operations being carried out by
the PIC or PIP, including the latter's information
systems, data security and/or data protection
needs.
• Knowledge by the DPO of the sector or field of
the PIC or PIP, and the latter's internal structure,
policies, and processes is also useful.
Extent of Liability - Section 34

• If the offender is a corporation, partnership or any juridical person, the

penalty shall be imposed upon the responsible officers, as the case may
be, who participated in, or by their gross negligence, allowed the
commission of the crime.
• If the offender is a juridical person, the court may suspend or revoke any
of its rights under this Act.
• If the offender is an alien, he or she shall, in addition to the penalties
herein prescribed, be deported without further proceedings after serving
the penalties prescribed.
• If the offender is a public official or employee and lie or she is found guilty
of acts penalized under Sections 27 and 28 of this Act, he or she shall, in
addition to the penalties prescribed herein, suffer perpetual or temporary
absolute disqualification from office, as the case may be.
The National Privacy Commission
• The Commission shall be attached to the
Department of Information and
Communications Technology (DICT) and shall
be headed by a Privacy Commissioner, who
shall also act as Chairman of the Commission.
(Section 9)
• The Privacy Commissioner shall be assisted by two (2)
Deputy Privacy Commissioners, one to be responsible for
Data Processing Systems and one to be responsible for
Policies and Planning.

• The Privacy Commissioner and the two (2) Deputy Privacy

Commissioners shall be appointed by the President of the
Philippines for a term of three (3) years, and may be
reappointed for another term of three
• (3) years.

• Vacancies in the Commission shall be filled in the same

manner in which the original appointment was made.
Functions (Section 7)
(a) Ensure compliance of personal information controllers with the
provisions of this Act;
(b) Receive complaints, institute investigations, facilitate or enable
settlement of complaints through the use of alternative dispute resolution
processes, adjudicate, award indemnity on matters affecting any personal
information, prepare reports on disposition of complaints and resolution of
any investigation it initiates, and, in cases it deems appropriate, publicize any
such report:
(c) Issue cease and desist orders, impose a temporary or permanent
ban on the processing of personal information, upon finding that the
processing will be detrimental to national security and public interest;
(d) Compel or petition any entity, government agency or
instrumentality to abide by its orders or take action on a matter affecting data
privacy;
 (e) Coordinate with other government
agencies and the private sector on efforts to
formulate and implement plans and policies to
strengthen the protection of personal
information in the country;
(f) Recommend to the Department of
Justice (DOJ) the prosecution and imposition of
penalties specified in Sections 25 to 29 of this
Act;
Confidentiality - Section 8
• The Commission shall ensure at all times the
confidentiality of any personal information
that comes to its knowledge and possession.
Republic Act No. 10175
(Cybercrime Prevention Act of 2012)
-September 12, 2012
• Cyber refers to a computer or a computer
network, the electronic medium in which
online communication takes place.
Penalty for Libel Under Section 6, RA No. 10175
• The penalty to be imposed shall be one (1)
degree higher than that provided for by the
Revised Penal Code, as amended, and special
laws, as the case maybe.

• Prision mayor (six years and one day to 12

years)
Vivares vs. St. Theresa's College, September 29,
2014
• The individual's desire for privacy is never
absolute, since participation in society is an
equally powerful desire. [(Alan Westin, Privacy
and Freedom (1967)]
• Therefore, a Facebook user who opts to make
use of a privacy tool to grant or deny access to
his or her post or profile detail should not be
denied the informational privacy right which
necessarily accompanies said choice.

• But such privacy may not be absolute.

RA 11032

EASE OF DOING BUSINESS ACT

PURPOSE
• Efficient turnaround of the delivery of
government services and the prevention of
graft and corruption in government.
• Reduce red tape
• Expedite business and nonbusiness related
transactions in government.
COVERAGE
• All government offices and agencies including
local government units (LGUs), government-
owned or controlled corporations and other
government instrumentalities, whether
located in the Philippines or abroad, that
provide services covering business and
nonbusiness related transactions.
REENGINEERING OF SYSTEMS AND PROCEDURES
• Streamlining of Government Services

• All offices and agencies which provide

government services are hereby mandated to
regularly undertake cost compliance analysis,
time and motion studies, undergo evaluation and
improvement of their transaction systems and
procedures and reengineer the same if deemed
necessary to reduce bureaucratic red tape and
processing time.
• Cost compliance analysis-analysis of the costs that are
incurred by businesses or other parties at whom regulation
may be targeted in undertaking actions necessary to
comply with the regulatory requirements, as well as the
costs to the government of regulatory administration and
enforcement

• Time and motion studies-a tool to track the progress of

customer interface, processing, queuing and waiting times,
and linked processes that are within and beyond the
control of the service office. It is an essential step in the
process mapping of services for the formulation and/or
updating of the Citizen's Charter.
WHOLE-OF-GOVERNMENT APPROACH IN
REENGINEERING
• Whole-of-Government Approach refers to the ability of
government agencies to work together to provide ease
of access and use by the citizens. Implementing the
whole-of-government approach implies a more
integrated approach to public service delivery, policy
making, interoperability of government processes,
strengthening vertical and horizontal linkages and
coordination among agencies, and clustering of basic
services into government, and designating points of
service in accordance with the life cycle of citizens and
businesses, respectively.
CITIZEN'S CHARTER
• an official document that communicates, in simple terms,
the service standards or pledge of an agency/service office
of the frontline services being provided to its citizens. It
describes the step-by-step procedure for availing a
particular service, the person responsible for each step, the
documents needed to be submitted and the fees to be
paid, if any.

• The Citizen's Charter of each agency has a dual purpose-it

shall be the basis for establishing accountability and for
recognizing good performance to grant rewards and
incentives.
CONTENTS OF CITIZEN'S CHARTER
a. A comprehensive and uniform checklist of
requirements for each type of application or request;
b. The procedure to obtain a particular service;
c. The person/s responsible for each step;
d. The maximum time to conclude the process;
e. The document/s to be presented by the applicant or
requesting party, if necessary;
f. The amount of fees, if necessary; and
g. The procedure for filing complaints.
RULES IN ACCESSING GOVERNMENSERVICES
Acceptance of Applications or Requests.
1. All officers or employees shall accept written applications,
requests, and/or documents being submitted by
applicants or requesting parties of the offices or agencies.
2. The receiving officer or employee shall perform a
preliminary assessment of the application or request
submitted with its supporting documents to ensure a
more expeditious action on the application or request.
The receiving officer or employee shall immediately
inform the applicant or requesting party of any
deficiency in the accompanying requirements, which shall
be limited to those enumerated in the Citizen's Charter.
3. The receiving officer or employee shall assign a
unique identification number to an application or
request, which shall be the identifying number for all
subsequent transactions between the government and
the applicant or requesting party regarding such specific
application or request.
4. The receiving officer or employee shall issue an
acknowledgement receipt containing the seal of the
agency, the name of the responsible officer or employee,
his/her unit and designation, and the date and time of
receipt of such application or request.
AUTOMATIC APPROVAL
• If a government office or agency fails to approve or disapprove an original
application or request for issuance of license, clearance, permit,
certification or authorization within the prescribed processing time, said
application or request shall be deemed approved provided that all
required documents have been submitted and all required fees and
charges have been paid. The acknowledgment receipt together with the
official receipt for payment of all required fees issued to the applicant or
requesting party shall be enough proof or has the same force and effect of
a license, clearance, permit, certification or authorization under this
automatic approval mechanism.

• If a government office or agency fails to act on an application or request

for renewal of a license, clearance, permit, certification or authorization
subject for renewal within the prescribed processing time, said license,
clearance, permit, certification or authorization shall automatically be
extended
DENIAL OF APPLICATION OR REQUEST FOR ACCESS
TO GOVERNMENT SERVICE
• Any denial of application or request for access to
government service shall be fully explained in
writing, stating the name of the person making
the denial and the grounds upon which such
denial is based. Any denial of application or
request is deemed to have been made with the
permission or clearance from the highest
authority having jurisdiction over the government
office or agency concerned.
PROCEDURES IN LOGAL GOVERNMENT UNITS
The LGUs are mandated to implement the following revised guidelines in the issuance
of business licenses, clearances, permits, certifications or authorizations:

(a) A single or unified business application form shall be used in processing new
applications for business permits and business renewals which consolidates all
the information of the applicant or requesting party by various local government
departments, such as, but not limited to, the local taxes and clearances, building
clearance, sanitary permit, zoning clearance, and other specific LGU
requirements, as the case may be, including the fire clearance from the Bureau
of Fire Protection (BFP).

The unified form shall be made available online using technology-neutral

platforms such as, but not limited to, the central business portal or the
city/municipality's website and various channels for dissemination. Hard copies of the
unified forms shall likewise be made available at all times in designated areas of the
concerned office and/or agency.
(b) A one-stop business facilitation service, hereinafter referred to as
the business one stop shop, (BOSS) for the city/municipality's business
permitting and licensing system to receive and process manual and/or
electronic submission of application for license, clearance, permit,
certification or authorization shall be established within the
cities/municipalities' Negosyo Center as provided for under Republic
Act No. 10644, otherwise known as the "Go Negosyo Act."

There shall be a queuing mechanism in the BOSS to better

manage the flow of applications among the LGUs' departments
receiving and processing applications. LGUs shall implement
collocation of the offices of the treasury, business permits and
licensing office, zoning office, including the BFP, and other relevant
city/municipality offices/departments, among others, engaged in
starting a business, dealing with construction permits.
(c) Cities/Municipalities are mandated to automate their
business permitting and licensing system or set up an
electronic BOSS within a period of three (3) years upon the
effectivity of this Act for a more efficient business registration
processes. Cities/Municipalities with electronic BOSS shall
develop electronic versions of licenses, clearances, permits,
certifications or authorizations with the same level of
authority, which may be printed by businesses in the
convenience of their offices. The DICT shall make available to
LGUs the software for the computerization of the business
permit and licensing system. The DICT, DTI, and DILG, shall
provide technical assistance in the planning and
implementation of a computerized or software-enabled
business permitting and licensing system.
(d) To lessen the transaction requirements, other local clearances such
as, but not limited to, sanitary permits, environmental and agricultural
clearances shall be issued together with the business permit.

(e) Business permits shall be valid for a period of one (1) year. The
city/municipality may have the option to renew business permits
within the first month of the year or on the anniversary date of the
issuance of the business permit.

(f) Barangay clearances and permits related to doing business shall be

applied, issued, and collected at the city/municipality in accordance
with the prescribed processing time of this Act: Provided, That the
share in the collections shall be remitted to the respective barangays.
ANTI-CORRUPTION POLICY
• Except for the preliminary assessment of the
business application and submitted
requirements, there will be a zero-contract
policy between business applicants and
government employees. Applicants will be
identified by case number and deal with
government offices anonymously.
ANTI-RED TAPE AUTHORITY
• The Anti-Red Tape Authority (ARTA) is
responsible for enforcing the Ease of Doing
Business Act in the Philippines. It is tasked to
enforce anti-red tape policies among
government officials and employees.
RA 8792

ELECTRONIC COMMERCE ACT OF

2000
Objectives of Electronic Commerce Act
RA 8792 aims to facilitate domestic and
international dealings, transactions, arrangements
agreements, contracts and exchanges and storage of
information through the utilization of electronic, optical
and similar medium, mode, instrumentality and
technology to recognize the authenticity and reliability of
electronic documents related to such activities and to
promote the universal use of electronic transaction in the
government and general public (Sec. 3 of RA 8792). In
view thereof, consumers and businessmen may transact
and consummate contracts through legal electronic
means provided in RA 8792.
Legal Recognition of Electronic Documents, and
Electronic Signatures
• In cases of documents and signatures in electric form,
the information shall not be denied legal effect, validity
or enforceability solely on the grounds that it is in the
data message purporting to give rise to such legal
effect, or that it is merely referred to in that electronic
data message (Sec. 6 of RA 8792). For evidentiary
purposes, an electronic document shall be the
functional equivalent of a written document under
existing laws (Sec. 7 of RA 8792).
 On the other hand, as to electronic signature
placed on the electronic document, it shall be
equivalent to the signature of a person on a written
document if that signature is proved by showing
that a prescribed procedure, not alterable by the
parties interested in the electronic document,
existed under which:
a. A method is used to identify the party sought to
be bound and to indicate said party’s access to the
electronic document necessary for his consent or
approval through the electronic signature;
b. Said method is reliable and appropriate for the
purpose for which the electronic document was
generated or communicated, in the light of all
circumstances, including any relevant agreement;
c. It is necessary for the party sought to be bound, in or
order to proceed further with the transaction, to have
executed or provided the electronic signature; and
d. The other party is authorized and enabled to verify
the electronic signature and to make the decision to
proceed with the transaction authenticated by the
same. (Sec. 7 of RA 8792)
 In furtherance of the support in favor of the
recognition of electronic signature, it shall be
presumed that electronic signature is the signature
of the person to whom it correlates and it was
affixed by that person with the intention of signing
or approving the electronic document unless the
person relying on the electronically signed
electronic document knows or has noticed of
defects in or unreliability of the signature or
reliance on the electronic signature is not
reasonable under the circumstances (Sec. 8 of RA
8792).
Communication of Electronic Data Messages or
Documents
• Under the Civil Code of the Philippines, all contracts
have three (3) essential elements, these are, consent of
the contracting parties, the object which is the subject
matter of the contract and cause of the obligation
which is established (Article 1318 of the Civil Code).
Consent is manifested by the meeting of the offer and
the acceptance upon the thing and the cause which are
to constitute the contract (1319 of the Civil Code).
 Under RA 8792, except when otherwise agreed by
the parties, an offer and its acceptance and such other
elements for the formation of contracts may be
expressed, demonstrated, and proved by means of
electronic data messages or electronic documents. No
contract shall be denied validity or enforceability on the
sole ground that it is in the form of an electronic data
message or electronic document, or that any or all of the
elements required under existing laws for the formation
of contracts is expressed, demonstrated and proved by
means of electronic data messages or electronic
documents (Sec. 16 (1) of RA 8792).
 With the passage of the foregoing, the
State emphasized the principle that contracts
shall be obligatory, in whatever form they may
have been entered into, provided all the
essential requisites for their validity are present
(Article 1356 of the Civil Code)
Consummation of the Transaction Through Electronic
Messages or Documents
• The electronic transactions made through networking
among banks, or linkages thereof with other entities or
networks, and vice versa, shall be deemed consummated
upon the actual dispensing of cash, or the debit of one
account, and the corresponding credit to another, whether
such transaction is initiated by the depositor, or by an
authorized collecting party. The obligation of one bank,
entity, or person similarly situated to another arising
therefrom shall be considered absolute, and shall not be
subjected to the process of preference of credits (Sec. 16
(2) of RA 8792).
E-Commerce in Carriage of Goods
Aside from personal consumer transactions, RA 8792 also
applies to contracts of carriage of goods. In the transport of the goods
to the buyer or recipient, RA 8792 provides:
a. Where the law requires that any action referred to contract of
carriage of goods be carried out in writing or by using a paper
document, that requirement is met if the action is carried out by
using one or more data messages or electronic documents.
b. The preceding paragraph applies whether the requirement therein
is in the form of an obligation or whether the law simply provides
consequences for failing either to carry out the action in writing or
to use a paper document.
c. If a right is to be granted to, or an obligation is to be
acquired by, one person and no person, and if the law
requires that, in order to effect this, the right or
obligation must be conveyed to that person by the
transfer, or use of, a paper document, that
requirement is met if the right or obligation is
conveyed by using one or more electronic data
messages or electronic documents unique;
d. For the purposes of paragraph (3), the standard of
reliability required shall be assessed in the light of the
purpose for which the right or obligation was
conveyed and in the light of all the circumstances,
including any relevant agreement.
e. Where one or more data messages are used to effect any
action in undertaking to deliver goods to a named person
or a person authorized to claim delivery or in granting,
acquiring, renouncing, surrendering, transferring or
negotiating rights in goods, no paper document used to
effect any such action is valid unless the use of electronic
data message or electronic document has been
terminated and replaced by the used of paper documents.
A paper document issued in these circumstances shall
contain a statement of such termination. The replacement
of the electronic data messages or electronic documents
by paper documents shall not affect the rights or
obligation of the parties involved.
f. If a rule of laws is compulsorily applicable to a
contract of carriage of goods which is in, or is
evidenced by, a paper document, that rule shall
not be inapplicable to such a contract of carriage
of goods which is evidenced by one or more
electronic data messages or electronic
documents by reason of the fact that the
contract is evidenced by such electronic data
messages or electronic documents instead of by
a paper document.
LABOR STANDARDS
• Labor Standards
refers to that part of labor law which
prescribes the minimum terms and conditions of
employment which the employer is required to
grant to its employees.
Coverage
• Employees in ALL establishments, whether operated for
profit or not, are covered by the law on labor standards.

• WHO ARE EXCLUDED?

1. Government employees;
2. Managerial employees; /
3. Other officers or members of a managerial staff;
4. Workers paid by results;
5. Non-agricultural field personnel; and
6. Domestic Helpers
NOTE:
– It is a condition sine qua non for the application of labor
laws that there is an employer-employee relationship

Four-fold test to determine the existence of employer-

employee relationship:
1. The selection and engagement of the employees;
2. The payment of wages;
3. The power of dismissal; and
4. The power to control the employees' conduct.
BASIC PAY
• Basic Salary means all the remuneration or earnings paid by
an employer to a worker for services rendered on normal
working days and hours but does not include cost-of-living
allowances, profit-sharing payments, premium payments,
13th month pay or other monetary benefits which are not
considered as part of or integrated into the regular salary of
the workers.

• The following are excluded from the computation of "basic

salary" : payments for sick, vacation and maternity leaves,
night differentials, regular holiday pay and premiums for
work done on rest days and special holidays.
Hours of Work- include (a) all time during which an
employee is required to be on duty or to be at a
prescribed workplace; and (b) all time during which
an employee is suffered or permitted to work

• Q:What is the total normal hours of work of an

employee daily?

• A: 8 hours
NO WORK, NO PAY PRINCIPLE
• The "no work, no pay" or "fair day's wage for fair day's
labor" means that if the worker does not work, he is
generally not entitled to any wage or pay.

• The exception is when it was the employer who unduly

prevented him from working despite his ableness,
willingness and readiness to work; or in cases where he
is illegally locked out or illegally suspended or illegally
dismissed, or otherwise illegally prevented from
working, in which event, he should be entitled to his
wage.
MEAL PERIODS
• Every employer is required to give his employees,
regardless of sex, not less than one (I) hour (or 60
minutes) time-off for regular meals.
• Meal break is not compensable hours worked
because the employee is free to do anything he
wants. However, if he is required to work while
eating, he should be compensated therefor.
OVERTIME WORK
• Service rendered in excess of and in addition
to eight (8) hours on ordinary working days,
which are the prescribed daily work period, is
overtime work.
OVERTIME PAY
EMERGENCY OVERTIME WORK
• GR: No employee may be compelled to render
overtime work against his will. The reason is
that this will constitute involuntary servitude.
Exceptions when employee may be compelled to render overtime work:
1. When the country is at war or when any other national or local emergency has
been declared by the National Assembly or the Chief Executive;
2. When overtime work is necessary to prevent loss of life or property or in case of
imminent danger to public safety due to actual or impending emergency in the
locality caused by serious accident, fire, floods, typhoons, earthquake, epidemic
or other disasters or calamities;
3. When there is urgent work to be performed on machines, installations or
equipment, or in order to avoid serious loss or damage to the employer or some
other causes of similar nature;
4. When the work is necessary to prevent loss or damage to perishable goods;
5. When the completion or continuation of work started before the 8th hour is
necessary to prevent serious obstruction or prejudice to the business or
operations of the employer; and
6. When overtime work is necessary to avail of favorable weather or environmental
conditions where performance or quality of work is dependent thereon.
CAN OVERTIME PAY BE WAIVED?
• No. The right to claim overtime pay is not
subject to a waiver.
Such right is governed by law and not merely
by the agreement of the parties.

• Overtime cannot be offset by undertime

because to allow offsetting would prejudice
the worker.
NIGHT SHIFT DIFFERENTIAL PAY
• Every employee shall be paid a night shift
differential of not less than 10% of his regular
wage for each hour worked performed
between ten o'clock in the evening and six
o'clock in the morning.
COMPUTATION OF NIGHT SHIFT DIFFERENTIAL PAY
1. Where night shift (10 p.m. to 6 a.m.) work is regular work.
• On an ordinary day: Plus 10% of the basic hourly rate or a total of I
10% of the basic hourly rate.
• On a rest day, special day or regular holiday: Plus 10% of the regular
hourly rate on a rest day, special day or regular holiday or a total of
1 10% of the regular hourly rate.

2. Where night shift (10 p.m. to 6 a.m.) work is overtime work.

• On an ordinary day: Plus 10% of the overtime hourly rate on an
ordinary day or a total of 1 10% of the overtime hourly rate on an
ordinary day.
• On a rest day or special day or regular holiday: Plus 10% of the
overtime hourly rate on a rest day or special day or regular holiday.
3. For overtime work in the night shift. Since overtime
work is not usually eight (8) hours, the compensation for
overtime night shift work is also computed on the basis of
the hourly rate.
• On an ordinary day. Plus 10% of 125% of basic hourly
rate or a total of 110% of 125% of basic hourly rate.
• On a rest day or special day or regular holiday. Plus
10% of 130% of regular hourly rate on said days or a
total of 1 10% of |30% of the applicable regular hourly
rate.
HOLIDAY PREMIUM
• Every worker shall be paid his regular daily wage during regular
holidays, except in retail and service establishments regularly
employing less than ten (10) workers.

• Holiday pay is a one-day pay given by law to an employee even if he

does not work on a regular holiday. This gift of a day's pay is limited
to each of the twelve regular (also called legal) holidays. It is not
demandable for any other kind of nonworking day. Since there are
twelve legal holidays in a year, there are only twelve occasions - no
more, no less - when holiday pay should be paid, except that there
are places where Muslim holidays also have to be observed.
 REGULAR HOLIDAYS
January 1 New Year’s Day
Movable Date Maundy Thursday
Movable Date Good Friday
April 9 Day of Valor
May 1 Labor Day
June 12 Independence Day
Last Monday of August National Heroes Day
November 30 Bonifacio Day
December 25 Christmas Day
December 30 Rizal Day
COMPUTATION OF HOLIDAY PREMIUM FOR REGULAR HOLIDAYS

a. If work is rendered on an employee's regular workday -

• If unworked - 100%,
• If worked – 1st 8 hours - 200%
• Work in excess of 8 hours - plus 30% of hourly rate on said day

b. If it is an employee's rest day -

• If unworked - 100%
• If worked - first 8 hours - plus 30% of 200%
• Work in excess of 8 hours - plus 30% of hourly rate on said day
 SPECIAL NON-WORKING HOLIDAY
Movable Date Chinese New Year
February 25 EDSA People Power Revolution
Anniversary
Movable Date Black Saturday
August 21 Ninoy Aquino Day
November 1 All Saint’s Day
December 8 Feast of the Immaculate Concepcion
COMPUTATION OF HOLIDAY PREMIUM FOR SPECIAL NON-WORKING
HOLIDAYS
a. If unworked -
• No pay, except if there is a company policy, practice, or collective
bargaining agreement (CBA) which grants payment of wages on
special days even if unworked.

b. If worked -
• First 8 hours { plus 30% of the daily rate of 100%
• Work in excess of 8 hours - plus 30% of hourly rate on said day

c. If falling on the employee's rest day and if worked -

• First 8 hours - plus 50% of the daily rate of 100%
• Work in excess of 8 hours - plus 30% of hourly rate on said day
EFFECTS OF ABSENCES ON THE COMPUTATION OF HOLIDAY PAY
1. Employees on leave of absence with pay - entitled to holiday pay when
they are on leave of absence with pay.
2. Employees on leave of absence without pay on the day immediately
preceding the regular holiday - may not be paid the required holiday pay
if they have not worked on such regular holiday.
3. Employees on leave while on SSS or employee's compensation benefits -
Employers should grant the same percentage of the holiday pay as the
benefit granted by competent authority in the form of employee's
compensation or social security payment, whichever is higher, if they are
not reporting for work while on such benefits.
4. When day preceding regular holiday is a non-working day or scheduled
rest day - should not be deemed to be on leave of absence on that day,
in which case, employees are entitled to the regular holiday pay if they
worked on the day immediately preceding the non-working day or rest
day.
13TH MONTH PAY(P.D. 851]
• COVERAGE: Only rank-and-file employees in
the private sector, regardless of their position,
designation, or employment status and
irrespective of the method by which their
wages are paid are entitled to 13th month
pay, provided that they have worked for at
least one(1)month during the calendar year.
Managerial employees are excluded.
Who are excluded from its coverage?
• The following employers are not covered by the I3th month pay
law:
1. The government and any of its political subdivisions, including
government-owned and controlled corporations, except those
corporations operating essentially as private subsidiaries of the
government.
2. Employers already paying their employees I3th month pay or
more in a calendar year or its equivalent at the time of the
issuance of the Revised Guidelines.
3. Employers of those who are paid on purely commission,
boundary, or task basis, and those who are paid a fixed amount
for performing a specific work, irrespective of the time consumed
in the performance thereof.
When should 13th month pay be paid?
• It must be paid not later than December 24 of
every year.

What is the minimum amount of the I3th month

pay?
• The minimum 13th month pay should not be less
than one-twelfth (1/12) of the total basic salary
earned by an employee within a calendar year.
What is meant by "basic salary" or "basic wage"?
• "Basic salary" or "basic wage" contemplates work within
the normal eight (8) working hours in a day.
• This means that the basic salary of an employee for
purposes of computing the 13th month pay should include
all remunerations or earnings paid by the employer for
services rendered during normal working hours.
• For purposes of computing the 13th month pay, "basic
salary" should be interpreted to mean not the amount
actually received by an employee, but 1/12 of their
standard monthly wage multiplied by their length of service
within a given calendar year.
LEAVES
• Service Incentive Leave
– Every covered employee who has rendered at
least one (1) year of service is entitled to a yearly
service incentive leave of five (5) days with pay.
SERVICE INCENTIVE LEAVE
All employees are covered by the rule on service incentive leave except:
1. Government employees, whether employed by the National
Government or any of its political subdivisions, including those
employed in government-owned and/or controlled corporations with
original charters or created under special laws; .
2. Persons in the personal service of another;
3. Managerial employees, if they meet all of the following conditions:
– 3.1.Their primary duty is to manage the establishment in which they are
employed or of a department or subdivision thereof;
– 3.2. They customarily and regularly direct the work of two or more employees
therein; and
– 3.3. They have the authority to hire or fire other employees of lower rank; or
their suggestions and recommendations as to hiring, firing, and promotion, or
any other change of status of other employees are given particular weight.
4. Officers or members of a managerial staff, if they perform the following
duties and responsibilities:
• 4.1. Primarily perform work directly related to management policies of
their employer;
• 4.2. Customarily and regularly exercise discretion and independent
judgment;
• 4.3. (a) Regularly and directly assist a proprietor or managerial employee
in the management of the establishment or subdivision thereof in which
he or she is employed; or (b) execute, under general supervision, work
along specialized or technical lines requiring special training, experience,
or knowledge; or (c) execute, under general supervision, special
assignments and tasks; and
• 4.4. Do not devote more than twenty percent (20%) of their hours worked
in a workweek to activities which are not directly and closely related to
the performance of the work described in paragraphs 4.1, 4.2, and 4.3
above;
5. Field personnel and those whose time and
performance are unsupervised by the employer;2
including those who are engaged on task or contract
basis, purely commission basis, or those who are paid
a fixed amount for performing work irrespective of
the time consumed in the performance thereof;3
6. Those already enjoying this benefit;
7. Those enjoying vacation leave with pay of at least five
(5) days; and
8. Those employed in establishments regularly
employing less than ten (10) employees
ARE UNAVAILED SERVICE INCENTIVE LEAVES
COMMUTABLE TO CASH?
• Yes. The service incentive leave is commutable
to its money equivalent if not used or
exhausted at the end of the year.
MATERNITY LEAVE[RA 11210]
• COVERAGE:
– All covered females, regardless of civil status,
employment status, and the legitimacy of her
child, are entitled to maternity leave.
PERIOD OF MATERNITY LEAVE
• Paid leave benefit granted to a qualified female worker in both the PUBLIC
SECTOR and the PRIVATE SECTOR (which is covered by the SSS, including
those in the informal economy), for the duration of:

• 105 days- in case of live childbirth, regardless of the mode of delivery

– Plus additional 15 paid days of paid leave for female worker qualified as sold
parent
– There is an option to extend for an additional thirty (30) days without pay
– Available for every instance of live childbirth, regardless of frequency

• 60 days- for miscarriage and emergency termination of pregnancy

– Available for every instance of pregnancy, miscarriage or emergency
termination of pregnancy, regardless of frequency
• A female worker entitled to maternity leave
benefits may, at her option, allocate up to
seven (7) days of said benefits to the child's
father or alternate caregiver
PATERNITY LEAVE
• "Paternity leave" covers a married male employee allowing him not
to report for work for seven (7) CALENDAR days but continues to
earn the compensation therefor, on the condition that his spouse
has delivered a child or suffered miscarriage for purposes of
enabling him to effectively lend support to his wife in her period of
recovery and/or in the nursing of the newly-born child.
• "Delivery" includes childbirth or any miscarriage.
• "Spouse" refers to the lawful wife. For this purpose, "lawful wife"
refers to a woman who is legally married to the male employee
concerned.
• "Cohabiting" refers to the obligation of the husband and wife to live
together.
• Every married employee in the private and public sectors is
entitled to a paternity leave of seven (7) calendar days with
full pay for the first four (4) deliveries of the legitimate
spouse with whom he is cohabiting.

• Paternity leave benefits are granted to the qualified

employee after the delivery by his wife, without prejudice
to an employer allowing an employee to avail of the benefit
before or during the delivery, provided that the total
number of days should not exceed seven (7) calendar days
for each delivery.

• Unavailed paternity leave is not convertible to cash

SOLO PARENT LEAVERA 8972]
• This is the leave benefit granted to a male or female solo
parent to enable him/her to perform parental duties and
responsibilities where his/her physical presence is required.

How many days may be availed of as solo parent leave?

• The solo parent leave shall not be more than seven (7)
WORKING days every year to a solo parent who has
rendered service of at least one (1) year, to enable him/her
to perform parental duties and responsibilities where
his/her physical presence is required. This leave shall be
non-cumulative.
• It bears noting that this leave privilege is an
additional leave benefit which is separate and
distinct from any other leave benefits
provided under existing laws or agreements.
WHO IS A SOLO PARENT?
1. A woman who gives birth as a result of rape and other crimes against
chastity even without a final conviction of the offender: Provided, That
the mother keeps and raises the child;
2. Parent left solo or alone with the responsibility of parenthood due to
death of spouse;
3. Parent left solo or alone with the responsibility of parenthood while the
spouse is detained or is serving sentence for a criminal conviction for at
least one (1) year;
4. Parent left solo or alone with the responsibility of parenthood due to
physical and/or mental incapacity of spouse as certified by a public
medical practitioner;
5. Parent left solo or alone with the responsibility of parenthood due to
legal separation or de facto separation from spouse for at least one (I)
year, as long as he/she is entrusted with the custody of the children;
6. Parent left solo or alone with the responsibility of parenthood due
to declaration of nullity or annulment of marriage as decreed by a
court or by a church as long as he/she is entrusted with the
custody of the children;
7. Parent left solo or alone with the responsibility of parenthood due
to abandonment of spouse for at least one (1) year;
8. Unmarried mother/father who has preferred to keep and rear
her/his child/children instead of having others care for them or
give them up to a welfare institution;
9. Any other person who solely provides parental care and support
to a child or children;
10. Any family member who assumes the responsibility of head of
family as a result of the death, abandonment, disappearance or
prolonged absence of the parents or solo parent.
• A change in the status or circumstance of the
parent claiming benefits under the law, such that
he/she is no longer left alone with the
responsibility of parenthood, shall terminate
his/her eligibility for these benefits.

• In the event that the parental leave is not availed

of, said leave shall not be convertible to cash
unless specifically agreed upon previously.
RA No. 11199

SOCIAL SECURITY LAW

• The Social Security System (SSS) of the
Philippines is established to promote the
social welfare of the people as well as to
protect them against the hazards of disability,
sickness, maternity, old age, death and other
contingencies in life by helping them in their
financial needs.
Definition of Terms
• Employer – Any person, natural or juridical, domestic or foreign,
who carries on in the Philippines any trade, business, industry,
undertaking, or activity of any kind and uses the services of another
person who is under his orders as regards the employment, except
the government and any of its political subdivisions, branches or
instrumentalities, including corporations owned or controlled by
the Government: Provided, That a self-employed person shall be
both employee and employer at the same time.

• Employee – Any person who performs services for an employer in

which either or both mental or physical efforts are used and who
receives compensation for such services, where there is an
employer-employee relationship: Provided, That a self-employed
person shall be both employee and employer at the same time.
• Dependents – The dependents shall be the following:
(1) The legal spouse entitled by law to receive support
from the member;
(2) The legitimate, legitimated or legally adopted, and
illegitimate child who is unmarried, not gainfully
employed, and has not reached twenty-one (21) years of
age, or if over twenty-one (21) years of age, he is
congenitally or while still a minor has been permanently
incapacitated and incapable of self-support, physically or
mentally: and
(3) The parent who is receiving regular support from the
member.
• Beneficiaries – The dependent spouse until he or she remarries, the
dependent legitimate, legitimated or legally adopted, and illegitimate
children, who shall be the primary beneficiaries of the
member: Provided, That the dependent illegitimate children shall be
entitled to fifty percent (50%) of the share of the legitimate, legitimated or
legally adopted children: Provided, further, That in the absence of the
dependent legitimate, legitimated or legally adopted children of the
member, his/her dependent illegitimate children shall be entitled to one
hundred percent (100%) of the benefits. In their absence, the dependent
parents who shall be the secondary beneficiaries of the member. In the
absence of all the foregoing, any other person designated by the member
as his/her secondary beneficiary.

• Self-employed – Any person whose income is not derived from

employment, as defined under this Act, as well as those workers
enumerated in Section 9-A hereof.
Compulsory Coverage

The SS Law mandates that all employees including kasambahays or

domestic workers not over sixty (60) years of age shall be members of
the SSS. The law also mandates compulsory coverage of the Self-
Employed which provides that self-employed includes, but not limited
to, the following:
• All self-employed professionals;
• Partners and single proprietors of businesses;
• Actors and actresses, directors, scriptwriters and news
correspondents who do not fall within the definition of the term
“employee” in Section 8 (d) of this Act;
• Professional athletes, coaches, trainers and jockeys; and
• Individual farmers and fishermen.
• The New SS Law likewise made it compulsory for
Overseas Filipino Workers, sea-based or land-
based, to be members of the SSS as provided for
under Section 9-B of R.A. No. 11199.
• As members of the SSS, all of the
abovementioned are required to remit monthly
contributions to SSS in order for them to avail of
the benefits provided for by the SS Law.
Benefits Available under the SS Law
• The SSS provides its members the privilege to
avail of different benefits depending upon the
member’s needs and qualification. Under
the New SS Law of 2018, the SSS provides for
Maternity Leave Benefit, Retirement Benefit,
Death Benefit, Permanent Disability Benefit,
Funeral Benefit, Sickness Benefit, and the latest
addition in view of the enactment of the New SS
Law, the Unemployment Insurance or
Involuntary Separation Benefits.
Pension
• Members of the SSS shall be entitled to the payment of monthly
pension subject to the terms provided by law.

• Dependents’ Pension. - Where monthly pension is payable on

account of death, permanent total disability or retirement,
dependents’ pension equivalent to ten percent (10%) of the
monthly pension or Two hundred fifty pesos (₱250.00), whichever
is higher, shall also be paid for each dependent child conceived on
or before the date of the contingency but not exceeding five (5),
beginning with the youngest and without
substitution: Provided, That where there are legitimate and
illegitimate children, the former shall be preferred
The Maternity Leave Benefit under Section 14-A of R.A. No.
11199, allows a female member to be paid a daily maternity benefit
equivalent to one hundred percent (100%) of her average daily salary
credit subject to the following conditions:
a. That the employee shall have notified her employer of her
pregnancy and the probable date of her childbirth, which notice
shall be transmitted to SSS in accordance with the rules and
regulations it may provide;
b. The full payment shall be advanced by the employer within thirty
(30) days from the filing of the maternity leave application;
c. That the payment of daily maternity benefits shall be a bar to the
recovery of sickness benefits provided by this Act for the same
period for which daily maternity benefits have been received;
d. That the maternity benefits provided under this section shall be
paid only for the first four (4) deliveries or miscarriages;
e. That the SSS shall immediately reimburse the employer of one
hundred percent (100%) of the amount of the maternity benefits
advanced to the employee by the employer upon receipt of
satisfactory proof of such payment and legality thereof; and
f. That if an employee member should give birth or suffer
miscarriage without the required contributions having been
remitted for her by her employer to the SSS, or without the latter
having been previously notified by the employer of the time of
the pregnancy, the employer shall pay to the SSS damages
equivalent to the benefits which said employee member would
otherwise have been entitled to.
• In connection with R.A. No. 11210 or the 105-
day Expanded Maternity Leave Law, the SSS
female member shall be granted one hundred
five (105) days maternity leave with full pay,
and an option to extend for another thirty (30)
days without pay.
• The Retirement Benefit under Section 12-B
of R.A. No. 11199, is given to a member who:
(1) has reached the age of sixty (60) years old,
and is already separated from work or has
ceased to be self-employed; or
(2) has reached the age of sixty five (65) years
provided he/she has complied with the required
monthly contributions.
• The Death Benefit under Section 13 of R.A. No.
11199 allows the primary beneficiaries of the
deceased member to be entitled to monthly
pension provided the latter has paid the
required monthly contributions to be qualified
thereof.
• The Permanent Disability Benefit under Section
13-A of R.A. No. 11199 provides that those who
have permanent disabilities shall be entitled to
monthly pension. The sum equivalent to the
monthly pension is still subject to the conditions
and qualifications provided by the said law.
Further, the law provides different monthly
pension for permanent total disability, which is
defined by Section 13-A (d), and permanent
partial disability.
• The Funeral Benefit under Section 13-B of R.A.
No. 11199 provides for a funeral grant
equivalent to Twelve Thousand Pesos
(P12,000.00) to be paid, in cash or in kind, to
help defray the cost of funeral expense upon
the death of a member, including permanently
totally disabled member or retiree.
• The Sickness Benefit under Section 14 of R.A.
No. 11199 provides daily sickness benefit
equivalent to ninety percent (90%) of his
average daily salary credit, to members who
are confined for more than three (3) days in a
hospital or elsewhere with the approval of the
SSS. However, to avail of this benefit, the
member must have complied with the
conditions and qualifications provided by the
said law.
• The Unemployment Insurance or Involuntary
Separation Benefits under Section 14-B of R.A.
No. 11199 provides that an employee who is
involuntarily unemployed or separated from
work can avail of this benefit. However, this
benefit shall only be availed once every three
(3) years.
Exemption from Tax, Legal Process and Lien. -
– All laws to the contrary notwithstanding, the SSS and all its
assets and properties, all contributions collected and all accruals
thereto and income or investment earnings therefrom as well as
all supplies, equipment, papers or documents shall be exempt
from any tax, assessment, fee, charge, or customs or import
duty; and all benefit payments made by the SSS shall likewise
be exempt from all kinds of taxes, fees or charges, and shall not
be liable to attachments, garnishments, levy or seizure by or
under any legal or equitable process whatsoever, either before
or after receipt by the person or persons entitled thereto,
except to pay any debt of the member to the SSS. No tax
measure of whatever nature enacted shall apply to the SSS,
unless it expressly revokes the declared policy of the State in
Section 2 hereof granting tax-exemption to the SSS. Any tax
assessment imposed against the SSS shall be null and void.
Employee’s Contributions. - Beginning on the last day of the
calendar month when an employee’s compulsory coverage
takes effect and every month thereafter during his
employment, the employer shall deduct and withhold from
such employee’s monthly salary, wage, compensation or
earnings, the employee’s contribution in an amount
corresponding to his salary, wage, compensation or earnings
during the month in accordance with the monthly salary
credits, the schedule and the rate of contributions as may be
determined and fixed by the Commission, subject to the
provisions of Section 4(a)(9) of this Act.
– The monthly salary credits, the schedule and the rate of
contributions shall also apply to self-employed, voluntary, and
other members.
Employer’s Contributions. -
• (a) Beginning on the last day of the month when an employee’s
compulsory coverage takes effect and every month thereafter
during his employment, his employer shall pay, with respect to such
covered employee, the employer’s contribution in accordance with
the schedule provided in this Act. Notwithstanding any contract to
the contrary, an employer shall not deduct, directly or indirectly,
from the compensation of his employees covered by the SSS or
otherwise recover from them the employer’s contributions with
respect to such employees.
• (b) The remittance of such contributions by the employer shall be
supported by a quarterly collection list to be submitted to the SSS
at the end of each calendar quarter indicating the correct ID
number of the employer, the correct names and the SSS numbers of
the employees and the total contributions paid for their account
during the quarter.
Contributions of the Self-Employed Member. - The contributions to the
SSS of the self-employed member shall be determined in accordance
with the schedule provided in this Act: Provided, That the monthly
earnings declared by the self-employed member at the time of his
registration with the SSS shall be considered as his monthly
compensation and he shall pay both the employer and the employee
contributions: Provided, further, That the contributions of self-
employed persons earning One thousand pesos (₱1,000.00) monthly
or below may be reduced by the Commission.
• The monthly earnings declared by the self-employed member at
the time of his registration shall remain the basis of his monthly
salary credit, unless he makes another declaration of his monthly
earnings, in which case such latest declaration becomes the new
basis of his monthly salary credit.
Remittance of Contributions -
• (a) The contribution imposed in the preceding section shall be
remitted to the SSS within the first ten (10) days of each calendar
month following the month for which they are applicable or within
such time as the Commission may prescribe. Every employer
required to deduct and to remit such contributions shall be liable
for their payment and if any contribution is not paid to the SSS as
herein prescribed, the delinquent employer shall pay besides the
contribution a penalty thereon of two percent (2%) per month from
the date the contribution falls due until paid. If deemed expedient
and advisable by the Commission, the collection and remittance of
contributions shall be made quarterly or semi-annually in advance,
the contributions payable by the employees to be advanced by
their respective employers: Provided, That upon separation of an
employee, any contribution so paid in advance but not due shall be
credited or refunded to his employer.
• (b) The contributions payable under this Act in cases where
an employer refuses or neglects to pay the same shall be
collected by the SSS in the same manner as taxes are made
collectible under the National Internal Revenue Code, as
amended. Failure or refusal of the employer to pay or remit
the contributions herein prescribed shall not prejudice the
right of the covered employee to the benefits of the
coverage.

• The right to institute the necessary action against the

employer may be commenced within twenty (20) years
from the time the delinquency is known or the assessment
is made by the SSS, or from the time the benefit accrues, as
the ease may be.
(c) Should any person, natural or juridical, defaults in any
payment of contributions, the Commission may also collect
the same in either of the following ways:

• (1) By an action in court, which shall hear and dispose of

the case in preference to any other civil action; or

• (2) By issuing a warrant to the Sheriff of any province or city

commanding him to levy upon and sell any real and
personal property of the debtor. The Sheriffs sale by virtue
of said warrant shall be governed by the same procedure
prescribed for executions against property upon judgments
by a court of record.
(d) The last complete record of monthly contributions
paid by the employer or the average of the monthly
contributions paid during the past three (3) years as of
the date of filing of the action for collection shall be
presumed to be the monthly contributions payable by
and due from the employer to the SSS for each of the
unpaid month, unless contradicted and overcome by
other evidence: Provided, That the SSS shall not be
barred from determining and collecting the true and
correct contributions due the SSS even after full payment
pursuant to this paragraph, nor shall the employer be
relieved of his liability under Section Twenty-eight of this
Act.
• Remittance of Contributions of Self-Employed
Member. - Self-employed members shall remit
their monthly contributions quarterly on such
dates and schedules as the Commission may
specify through rules and
regulations: Provided, That no retroactive
payment of contributions shall be allowed,
except as provided in this Section.
Method of Collection and Payment.
• The SSS shall require a complete and proper
collection and payment of contributions and
proper identification of the employer and the
employee. Payment may be made in cash,
checks, stamps, coupons, tickets, or other
reasonable devices that the Commission may
adopt.
Employment Records and Reports. -
• (a) Each employer shall immediately report to the SSS the names,
ages, civil status, occupations, salaries and dependents of all his
employees who are subject to compulsory coverage
• (b) Should the employer misrepresent the true date of employment
of the employee member or remit to the SSS contributions which
are less than those required in this Act or fail to remit any
contribution due prior to the date of contingency, resulting in a
reduction of benefits, such employer shall pay to the SSS damages
equivalent to the difference between the amount of benefit to
which the employee member or his beneficiary is entitled had the
proper contributions been remitted to the SSS and the amount
payable on the basis of contributions actually remitted.
• (c) The records and reports duly accomplished
and submitted to the SSS by the employer or the
member, as the case may be, shall be kept
confidential by the SSS except in compliance with
a subpoena duces tecum issued by the courts.
• (d) Every employer shall keep true and accurate
work records for such period and containing such
information as the Commission may prescribe, in
addition to an "Annual Register of New and
Separated Employees"
• (e) Each employer shall require, as a condition
to employment, the presentation of a
registration number secured by the
prospective employee from the SSS in
accordance with such procedure as the SSS
may adopt
Report and. Registration of the Self-Employed
Member.
• Each covered self-employed member shall,
within thirty (30) days from the first day he
started the practice of his profession or
business operations, register and report to the
SSS his name, age, civil status, and occupation,
average monthly net income and his
dependents.
Violations and its corresponding Penalties
• Section 28 of the New SS Law of
2018 provides for the following violations and
its corresponding penalties:
VIOLATION PENALTY/IES
Whoever, for the purpose of causing any Suffer penalties provided under Article
payment to be made under this Act, or 172 of the Revised Penal Code.
under an agreement thereunder, where
none is authorized to be paid, shall make
or cause to be made false statement or
representation as to any compensation
paid or received or whoever makes or
causes to be made any false statement of
a material fact in any claim for any benefit
payable under this Act, or application for
loan with SSS, or whoever makes or
causes to be made any false statement,
representation, affidavit or document in
connection with such claim or
loan (Section 28 (a)).
VIOLATION PENALTY/IES
Whoever shall obtain or receive any Fine of not less than Five Thousand Pesos
money or check under this Act or any (P5,000.00) nor more than Twenty
agreement thereunder, without being Thousand Pesos (P20,000.00) AND
entitled thereto with intent to defraud imprisonment for not less than six (6) years
any member, employer, or and one (1) day nor more than twelve (12)
the SSS (Section 28 (b)). years.
VIOLATION PENALTY/IES
Whoever buys, sells, offers for sale, uses, Fine of not less than Five Thousand Pesos
transfers or takes or gives in exchange, or (P5,000.00) nor more than Twenty
pledges or gives in pledge, except as Thousand Pesos (P20,000.00) or
authorized in this Act or in regulations imprisonment for not less than six (6)
made pursuant thereto, any stamp, years and one (1) day nor more than
coupon, ticket, book or other device, twelve (12) years, or both, at the
prescribed pursuant to Section Twenty discretion of the court
Three hereof by the Commission for the
collection or payment of contributions
required herein (Section 28 (c)).
VIOLATION PENALTY/IES
Whoever, with intent to defraud, alters, Fine of not less than Five Thousand Pesos
forges, makes or counterfeits any stamp, (P5,000.00) nor more than Twenty
coupon, ticket, book or other device Thousand Pesos (P20,000.00) or
prescribed by the Commission for the imprisonment for not less than six (6)
collection or payment of any contribution years and one (1) day nor more than
required herein, or uses, sells, lends, or twelve (12) years, or both, at the
has in his possession any such altered, discretion of the court.
forged, or counterfeited materials, or
makes, uses, sells, or has in his possession
any such altered, forged, material in
imitation of the material used in the
manufacture of such stamp, coupon,
ticket, book or other device (Section 28
(d)).
VIOLATION PENALTY/IES
Whoever fails or refuses to comply with Fine of not less than Five Thousand Pesos
the provisions of this Act or with the rules (P5,000.00) nor more than Twenty
and regulations promulgated by the Thousand Pesos (P20,000.00) OR
Commission (Section 28 (e)). imprisonment for not less than six (6)
years and one (1) day nor more than
twelve (12) years.
VIOLATION PENALTY/IES
Violation consists in failure or refusal to Fine of not less than Five Thousand Pesos
register employees or himself, in case of (P5,000.00) nor more than Twenty
the covered self-employed or to deduct Thousand Pesos (P20,000.00) AND
contributions from the employees’ imprisonment for not less than six (6)
compensation and remit the same to the years and one (1) day nor more than
SSS (Section 28 (e)) twelve (12) years.
VIOLATION PENALTY/IES
If the act or omission penalized under this Its managing head, directors or partners
Act be committed by an association, shall be liable for the penalties provided
partnership, corporation or any other in this Act for the offense.
institution (Section 28 (f)).
VIOLATION PENALTY/IES
Any employee of the SSS who receives or Suffer penalties provided under Article
keeps funds or property belonging, 217 of the Revised Penal Code.
payable or deliverable to the SSS and
shall appropriate the same, or shall take
or misappropriate, or shall consent, or
through abandonment or negligence,
shall permit any other person to take such
property or funds, wholly or partially, or
shall otherwise be guilty of
misappropriation of such funds or
property (Section 28 (g)).
VIOLATION PENALTY/IES
Any employer who, after deducting the Suffer penalties provided under Article
monthly contributions or loan 315 of the Revised Penal Code
amortizations from his employee’s
compensation, fails to remit the said
deduction to the SSS within thirty (30)
days from the date they become due,
shall be presumed to have
misappropriated such contributions or
loan amortizations (Section 28 (h)).