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					 INTELLECTUAL PROPERTY
RIGHTS FOR SCIENTISTS AND
        ENGINEERS
                  31 May 2011
  University of San Carlos, Talamban Campus
                   Cebu City
Intellectual property is a set of legal
rights that results from intellectual
activity in the industrial, literary, scientific
and artistic fields.

They do not apply to the physical object
but instead to the intellectual creation as
such.


                                                   2
  Tangible vs. Intangible

Tangible property – discernible by
the senses.

Intangible property – incapable of
being discerned by the senses.
                                     3
Intellectual property right is an intangible right that is
separate from the physical object. It refers to the products
of human creativity, or property that is the result of human
thought.
By contrast, real property refers to land or real estate,
while personal property refers to items and things that can
be identified, such as money, cars, jewelry, etc.




                                                               4
Intellectual property is governed by the
Intellectual Property Code (Republic Act 8293).
Under the Intellectual Property Code, the term
intellectual property right consists of:

1. Copyright and Related Rights
2. Trademarks and Service Marks
3. Geographic Indications
4. Industrial Designs
5. Patents
6. Layout-Designs or Topographies of Integrated
   Circuits
7. Protection of Undisclosed Information
                                            5
                 TRADEMARK

A trademark is a sign or symbol that
distinguishes the goods or services of one
enterprise from another in commerce. It is a
word, device, symbol used to indicate the origin,
quality and ownership of a product or service.

Purposes of trademark: (1) indicate the source or
origin of goods or services; (2) distinguish the
goods or services from those offered by another;
(3) assure that the goods are of a certain quality;
(4) provide consumers with a tool in making
decisions about the purchase of goods.
                                                      6
Businesses use marks to indicate that the
goods came from them and that the goods are
of a certain quality.

The decision of consumers to purchase one
product over another depends mostly on the
marks carried by the goods.




                                              7
                      COPYRIGHT

Copyright consists of a bundle of rights granted to authors
and artists to protect expressive works against
unauthorized reproduction or distribution by third parties.
It protects original works of authorship, including literary,
artistic and other works.

Copyright is based on the principle of idea/expression
dichotomy, which means that while the authors have the
right to their original expression, the public is encouraged
to build upon ideas conveyed by a work.




                                                                8
                      PATENT

A set of rights granted to the inventor of a product or
process that is new, involves an inventive step and is
capable of industrial application.

A grant from the government that permits the owner to
exclude others from making, using, or selling an
invention.

A negative right since it affords the right to exclude
others from making, using, selling or importing a
patented invention.



                                                          9
Patents are granted by the Bureau of Patents of
the Intellectual Property Office for new, non-
obvious and useful inventions.
(Section 21, Republic Act 8293).




                                              10
Typical Patent Value Chain
Idea     →   Experimentation   and
Reduction to Practice → Patent
Application → Patent Prosecution →
Registration → Enforcement



                                 11
Procedures for the registration of a patent:

  1.   Filing of the application
  2.   Formality examination
 3.    Classification and search
 4.    Publication of the application
 5.    Substantive examination
 6.    Issuance of registration




                                               12
             Invention Motivation Theory
This theory proposes that if there were no patent protection, there
would be no invention.

Without the prospect of property right, inventors would be unable to
recover their research and development costs because third parties
could simply copy the invention and compete with the inventor in the
marketplace.

Few inventions would be made if there is no patent protection
because inventions, once made, could easily be appropriated by
competitors of inventors who have not shared in the costs of
invention.




                                                                  13
         Patent Principles

 Negative Right
 Territoriality
 Ownership
 Limited Term



                             14
A Patent Confers a Negative Right

A certificate of patent registration confers the
exclusive right to restrain, prohibit and prevent any
unauthorized person from making, using, offering for
sale, selling or importing that product.

A patent confers a negative right, or the legal faculty
to prevent others from doing certain acts relating to
the invention, rather than a positive right with regard
to his products or processes.


                                                      15
Example:

A pharmaceutical patent entitles the patent
holder to prevent or prohibit its competitor from
making, using, selling or importing the drug
covered by the patent.

The patent, however, is not the document that
permits the patent holder to actually market the
drug. For the purpose of selling the drug, the
patent holder would need the Certificate of
Product Registration (CPR) from the Food and
Drug Administration (FDA).
                                                16
                Rights Conferred by a Patent
   A patent confers on its owner the following rights:


(a) Where the subject matter of a patent is a product, to restrain,
    prohibit and prevent any unauthorized person or entity from (1)
    making, (2) using, (3) offering for sale, (4) selling or (5) importing
    that product;

(b) Where the subject matter of a patent is a process, to restrain,
   prevent or prohibit any unauthorized person or entity from using
   the process, and from manufacturing, dealing in, using, selling or
   offering for sale, or importing any product obtained directly or
   indirectly from such process.




                                                                         17
                        Definitions

Making means constructing or creating from part or other
substances.

Using means utilization of the product by a third party. This concept
may include a sales demonstration,

Offering for sale includes acts aimed at commercialization of a
product.

Selling covers transactions against payment of a price.

Importing covers the introduction of the patented product into the
country where protection is conferred, even if done for non-
commercial purposes or free of cost.


                                                                    18
    Exceptions and Limitations to Patent Rights

Where the act is done privately and on a non
commercial scale or for a non-commercial purpose.

Where the act consists of making or using exclusively
for experimental use of the invention for scientific
purposes or educational purposes and such other
activities directly related to such scientific or
experimental educational use;




                                                    19
                  Territoriality

 The grant of patent in the Philippines would only
  have an effect in the Philippines and not
  anywhere else.
 An implication of this rule is that there could be
  no global patent that may be enforced worldwide.
 Patents may only be enforced in the jurisdiction
  that issued the patent.



                                                       20
                  Term Limit

You can only protect and enforce your invention
for the duration of the term of the patent, which
shall be twenty (20) years from the filing date of
application in case of invention patents, seven (7)
years in case of utility models, and three five (5)
year-terms for industrial designs or a total of
fifteen (15) years


                                                  21
               Ownership of Patents

 For inventions created pursuant to a commission, the
 person who commissioned the work shall own the patent,
 unless otherwise provided in the contract.

 In case the employee made the invention in the course of
 his employment contract, the patent shall belong to: (a)
 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) employer, if
 the invention is the result of the performance of his
 regularly-assigned duties, unless there is an agreement,
 express or implied, to the contrary.

                                                     22
    Remedies to Enforce Patent Rights

In the Philippines, there is no pre-grant opposition to
a patent application. But there is rule that allows third
parties to file a third party observation to a pending
patent application.




                                                        23
     Cancellation of Invention Patents
 A remedy that allows any person to seek the
cancellation of an issued invention patent on the
following grounds:

(a) invention is not new or patentable;
(b) 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
(c) the patent is contrary to public order or morality.


                                                  24
                Formal Requirements

 The petition for cancellation shall be in writing,
 verified by the petitioner or by any person in his
 behalf who knows the facts, specify the grounds
 upon which it is based, include a statement of the
 facts to be relied upon, and filed with the Office.
 Copies of printed publications or of patents of other
 countries, and other supporting documents
 mentioned in the petition shall be attached thereto,
 together with the translation thereof in English, if not
 in the English language.

                                                        25
     Cancellation of Utility Model Patent
The utility model registration shall be canceled on the
following grounds:

(a) utility model is not patentable, or is not new or
industrially applicable;
(b) description and the claims do not comply with the
prescribed requirements;
(c) any drawing which is necessary for the understanding
of the invention has not been furnished;
(d) owner of the utility model registration is not the
inventor or his successor in title.

                                                       26
   Cancellation of Design Registration


The industrial registration shall be cancelled on any
of the following grounds:

(a) industrial design is not original ;

(b) industrial design is not new; or

(c) industrial design extends beyond the content of
the application as originally filed
                                                    27
          Patent Infringement

 Refers to 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.



                                         28
Remedies for Patent Infringement

   Administrative Action
        Civil Action
      Criminal Action




                                   29
       Civil Action for Infringement
 Any patentee, or anyone possessing any right, title or
  interest in and to the patented invention, whose
  rights have been infringed, may bring a civil action
  before a court of competent jurisdiction, to recover
  from the infringer such damages sustained thereby,
  plus attorney's fees and other expenses of litigation,
  and to secure an injunction for the protection of his
  rights.
 The court may order that the infringing goods,
  materials and implements predominantly used in the
  infringement be disposed of outside the channels of
  commerce or destroyed, without compensation.
                                                       30
 Administrative Action for Infringement

 Similar to a civil action but is filed before the Bureau
 of Legal Affairs of the Intellectual Property Office
 (BLA-IPOPHL).

 The BLA-IPOPHL may issue a cease and desist
 order, condemnation or seizure of products, payment
 of damages, forfeiture of paraphernalia used in the
 commission of the offense



                                                         31
    Criminal Action for Repetition of Infringement

 If infringement is repeated by the infringer or by
  anyone in connivance with him after finality of the
  judgment of the court against the infringer, the
  offenders shall, without prejudice to the institution of
  a civil action for damages, be criminally liable.
 Upon conviction, the infringer shall suffer
  imprisonment for the period of not less than six (6)
  months but not more than three (3) years and/or a
  fine of not less than One hundred thousand pesos
  (P100,000) but not more than Three hundred
  thousand pesos (P300,000), at the discretion of the
  court.
                                                         32
      Alternatives to Litigation

     Cease and Desist Letter


 Licensing and/or Cross Licensing




                                     33
    Other Modes of Dispute Resolution

Mediation - a process where the parties to a pending
case are directed by the court to submit their dispute
to a neutral third party (the Mediator), who works with
them to reach a settlement of their controversy.

Arbitration - means a voluntary dispute resolution
process in which one or more arbitrators, appointed
in accordance with the agreement of the parties
resolve a dispute by rendering an award.


                                                      34
Enforcement of Patents in Other Countries

Enforcement of patent in other
countries requires filing of an
application in each and every country
where product is intended to be
manufactured and/or sold.



                                            35
Thank you.




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