A.

IP in General
 The New Civil Code
o Article 712
 Ownership is acquired by occupation and by intellectual creation.
 Ownership and other real rights over property are acquired and transmitted by law, by
donation, by estate and intestate succession, and in consequence of certain contracts, by
tradition.
 They may also be acquired by means of prescription
o Article 721
 By intellectual creation, the following persons acquire ownership:
1. The author with regard to his literary, dramatic, historical, legal, philosophical,
scientific or other work;
2. The composer; as to his musical composition;
3. The painter, sculptor, or other artist, with respect to the product of his art;
4. The scientist or technologist or any other person with regard to his discovery or
invention. (n)
o Art. 722
 The author and the composer, mentioned in Nos. 1 and 2 of the preceding article, shall
have the ownership of their creations even before the publication of the same. Once their
works are published, their rights are governed by the Copyright laws.
 The painter, sculptor or other artist shall have dominion over the product of his art even
before it is copyrighted.
 The scientist or technologist has the ownership of his discovery or invention even before
it is patented. (n)
o Art. 723
 Letters and other private communications in writing are owned by the person to whom
they are addressed and delivered, but they cannot be published or disseminated without
the consent of the writer or his heirs. However, the court may authorize their publication
or dissemination if the public good or the interest of justice so requires. (n)
o Art. 724
 Special laws govern copyright and patent

 Understanding Copyrights and Related Rights

o Intellectual Property
 Refers broadly to the creations of the human mind.
 IP rights protect the interests of innovators and creators by giving them rights over their
creations.
o The Convention Establishing the World Intellectual Property Organization (1967) does not seek to
define IP, but lists the following as protected by IP rights:
1. Literary, artistic and scientific works;
2. Performances of performing artists, phonograms and broadcasts;
3. Inventions in all fields of human endeavors;
4. Scientific discoveries;
5. Industrial design;
6. Trademarks, service marks, and commercial names, and designation;
7. Protection against unfair competition; and
8. All other rights resulting from intellectual activity in the industrial, scientific, literary, or
artistic fields
o The importance of protecting IP was first recognized in:
1. Paris Convention for the Protection of Industrial Property (1883) (Paris Convention) and
2. Berne Convention for the Protection of Literary and Artistic Works (1886) (Berne
Convention).
 Both treaties are administered by the World Intellectual Property Organization (WIPO).
o Countries generally have laws to protect IP for two main reasons:
  To give statutory expression to the rights of creators and innovators in their creations and
innovations, balanced against the public interest in accessing creations and innovations;
 To promote creativity and innovation, so contributing to economic and social
development.
o Two branches of Intellectual Property
1. Industrial Property
a) Patents for inventions,
b) Industrial designs
 Aesthetic creations related to the appearance of industrial products),
c) Trademarks,
d) Service marks,
e) Layout designs of integrated circuits,
f) Commercial names and designations,
g) Geographical indications and protection against unfair competition.
2. Copyright
a) Literary and artistic creations,
 Books, music, paintings and sculptures,
b) Films and technology-based works
 Computer programs and electronic databases.
o In certain languages, copyright is referred to as authors’ rights.
o Copyright
 Refers to the act of copying an original work which, in respect of literary and
artistic creations, may be done only by the author or with the author’s
permission.
o Authors’ rights
 Refers to the creator of an artistic work, its author. Authors have certain
specific rights in their creations that only they can exercise, often referred to
as moral rights, such as the right to prevent distorted reproductions of the
work.
o Other rights, such as the right to make copies, can be exercised by third parties with
the author’s permission.
 Protection for inventions gives a monopoly right to exploit an idea, such protection is
short in duration – usually about 20 years.
 The fact that the invention is protected must also be made known to the public.
 Copyright law and the associated concept of related or neighboring rights protects only
the form of expression of ideas, not the ideas themselves. The works protected by
copyright are creative with regard to the choice and arrangement of the medium of
expression.
 Copyright protects the owner of the exclusive property rights against those who copy or
otherwise take and use the particular form in which the original work was expressed.
 It is possible for authors and creators to create, have rights in and exploit a work very
similar to the creation of another author or creator without infringing copyright, as long as
the work of another author or creator was not copied.
o Inventions
 May be defined in a non-legal sense as new solutions to technical problems. These new
solutions are ideas, and are protected as such.
 Protection of inventions under patent law does not require the invention to be
represented in a physical form. The protection accorded to inventors is, therefore,
protection against any use of the invention without the permission of the owner.
 Even an inventor who independently creates something that has already been invented,
without copying or being aware of the first inventor’s work, must obtain permission in
order to exploit the later invention.
o Literary and artistic works
 Includes every original work of authorship, irrespective of its literary or artistic merit.
  The ideas in the work do not need to be original, but the form of expression must be an
original creation by the author.
o Rights protected by Copyright
1. Economic rights
 Allow right owners to derive financial reward from the use of their works by others
a. Reproduction of the work in various forms, such as printed publications or sound
recordings;
b. distribution of copies of the work;
c. public performance of the work;
d. broadcasting or other communication of the work to the public;
e. translation of the work into other languages; and
f. adaptation of the work,such as turning a novel into a screenplay.
2. Moral rights
 Allow authors and creators to take certain actions to preserve and protect their
link with their work.
o Right to control the act of reproduction – be it the reproduction of books by a publisher or the
manufacture by a record producer of compact discs containing recorded performances of musical
works – is the legal basis for many forms of exploitation of protected works.

 Understanding Industrial Property

 IP Code
o Section 4 - Definitions. –
 4.1. The term "intellectual property rights" consists of:
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; and
7. Protection of Undisclosed Information (n, TRIPS).
 4.2. The term "technology transfer arrangements" refers to contracts or agreements
involving the transfer of systematic knowledge for the manufacture of a product, the
application of a process, or rendering of a service including management contracts; and
the transfer, assignment or licensing of all forms of intellectual property rights, including
licensing of computer software except computer software developed for mass market.
 4.3. The term "Office" refers to the Intellectual Property Office created by this Act.
 4.4. The term "IPO Gazette" refers to the gazette published by the Office under this Act.

 ELIDAD C. KHO, doing business under the name and style of KEC COSMETICS LABORATORY,
petitioner, vs. HON. COURT OF APPEALS, SUMMERVILLE GENERAL MERCHANDISING and
COMPANY, and ANG TIAM CRAY,
Facts:
o Petitioner alleged:
 That she is doing business under the name and style of KEC Cosmetics Laboratory, is
the registered owner of the copyrights Chin Chun Su and Oval Facial Cream
Container/Cas.
 That she also has patent rights on Chin Chun Su & Device and Chin Chun Su for
medicated cream after purchasing the same from Quintin Cheng, the registered owner
thereof in the Supplemental Register of the Philippine Patent Office.
 That Summerville advertised and sold petitioner’s cream products under the brand name
Chin Chun Su, in similar containers that petitioner uses, thereby misleading the public,
and resulting in the decline in the petitioner’s business sales and income; and, that the
 respondents should be enjoined from allegedly infringing on the copyrights and patents of
the petitioner.
o Respondents allege:
 That Summerville is the exclusive and authorized importer, re-packer and distributor of
Chin Chun Su products manufactured by Shun Yi Factory of Taiwan;
 That the said Taiwanese manufacturing company authorized Summerville to register its
trade name Chin Chun Su Medicated Cream with the Philippine Patent Office and other
appropriate governmental agencies;
 That KEC Cosmetics Laboratory of the petitioner obtained the copyrights through
misrepresentation and falsification; and, that the authority of Quintin Cheng, assignee of
the patent registration certificate, to distribute and market Chin Chun Su products in the
Philippines had already been terminated by the said Taiwanese Manufacturing Company.
Issue:
o WON KHO is protected under the law.
Held:
o NO. Trademark, copyright and patents are different intellectual property rights that cannot be
interchanged with one another.
o A trademark is 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.
o In relation thereto, a trade name means the name or designation identifying or distinguishing an
enterprise.
o Meanwhile, the scope of a copyright is confined to literary and artistic works which are original
intellectual creations in the literary and artistic domain protected from the moment of their
creation.
o Patentable inventions, on the other hand, refer to any technical solution of a problem in any field
of human activity which is new, involves an inventive step and is industrially applicable.
o Petitioner has no right to support her claim for the exclusive use of the subject trade name and its
container. The name and container of a beauty cream product are proper subjects of a trademark
inasmuch as the same falls squarely within its definition.
o In order to be entitled to exclusively use the same in the sale of the beauty cream product, the
user must sufficiently prove that she registered or used it before anybody else did.
o The petitioner’s copyright and patent registration of the name and container would not guarantee
her the right to the exclusive use of the same for the reason that they are not appropriate subjects
of the said intellectual

 JESSIE G. CHING, vs. WILLIAM M. SALINAS, SR., ET AL

Facts:
o Petitioner is a maker and manufacturer of a utility model, Leaf Spring Eye Bushing for
Automobile, for which he holds certificates of copyright registration.
o Petitioner request the NBI to apprehend and prosecute illegal manufacturers of his work led to the
issuance of search warrants against respondent Salinas, alleged to be reproducing and
distributing said models in violation of the IP Code.
o Respondent moved to quash the warrants on the ground that petitioner’s work is not artistic in
nature and is a proper subject of a patent, not copyright.
o Petitioner insists that the IP Code protects a work from the moment of its creation regardless of
its nature or purpose.
o The trial court quashed the warrants.
o CA affirmed the trial court’s decision.
Issue:
o Whether or not petitioner’s model is an artistic work subject to copyright protection.
o Whether or not petitioner is entitled to copyright protection on the basis of the certificates of
registration issued to it.
Held:
 o NO. As gleaned from the specifications appended to the application for a copyright certificate filed
by the petitioner, the said Leaf Spring Eye Bushing for Automobile and Vehicle Bearing Cushion
are merely utility models.
o As gleaned from the description of the models and their objectives, these articles are useful
articles which are defined as one having an intrinsic utilitarian function that is not merely to
portray the appearance of the article or to convey information.
o Plainly, these are not literary or artistic works. They are not intellectual creations in the literary
and artistic domain, or works of applied art. They are certainly not ornamental designs or one
having decorative quality or value.
o Indeed, while works of applied art, original intellectual, literary and artistic works are
copyrightable, useful articles and works of industrial design are not.
o A useful article may be copyrightable only if and only to the extent that such design incorporates
pictorial, graphic, or sculptural features that can be identified separately from, and are capable of
existing independently of the utilitarian aspects of the article.
o In this case, the bushing and cushion are not works of art. They are, as the petitioner himself
admitted, utility models which may be the subject of a patent.

o NO. No copyright granted by law can be said to arise in favor of the petitioner despite the
issuance of the certificates of copyright registration and the deposit of the Leaf Spring Eye
Bushing and Vehicle Bearing Cushion. Indeed, in Joaquin, Jr. v. Drilon and Pearl & Dean (Phil.),
Incorporated v. Shoemart, Incorporated, the Court ruled that:
 Copyright, in the strict sense of the term, is purely a statutory right. It is a new or
independent right granted by the statute, and not simply a pre-existing right regulated by
it.
 Being a statutory grant, the rights are only such as the statute confers, and may be
obtained and enjoyed only with respect to the subjects and by the persons, and on terms
and conditions specified in the statute.
 Accordingly, it can cover only the works falling within the statutory enumeration or
description.
o Ownership of copyrighted material is shown by proof of originality and copyrightability.
o To discharge his burden, the applicant may present the certificate of registration covering the
work or, in its absence, other evidence.
o A copyright certificate provides prima facie evidence of originality which is one element of
copyright validity. It constitutes prima facie evidence of both validity and ownership and the
validity of the facts stated in the certificate.

 PH Constitution
o Article XII, Section 14
 The sustained development of a reservoir of national talents consisting of Filipino
scientists, entrepreneurs, professionals, managers, high-level technical manpower and
skilled workers and craftsmen in all fields shall be promoted by the State. The State shall
encourage appropriate technology and regulate its transfer for the national benefit.
o Article XIV, Section 10
 Science and technology are essential for national development and progress. The State
shall give priority to research and development, invention, innovation, and their utilization;
and to science and technology education, training, and services. It shall support
indigenous, appropriate, and self-reliant scientific and technological capabilities, and their
application to the country’s productive systems and national life.
o Article XIV, Section 13
 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.
o Article XIV, Section 15
  Arts and letters shall enjoy the patronage of the State. The State shall conserve,
promote, and popularize the nation’s historical and cultural heritage and resources, as
well as artistic creations
o Article XIV, Section 16
 All the country’s artistic and historic wealth constitutes the cultural treasure of the nation
and shall be under the protection of the State which may regulate its disposition
 IP Code
o Section 2. Declaration of State Policy. –
 The State recognizes that an effective intellectual and industrial property system is vital to
the development of domestic and creative activity, facilitates transfer of technology,
attracts foreign investments, and ensures market access for our products. It 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 periods as provided in this Act.
 The use of intellectual property bears a social function. To this end, the State shall
promote the diffusion of knowledge and information for the promotion of national
development and progress and the common good.
 It is also the policy of the State to streamline administrative procedures of registering
patents, trademarks and copyright, to liberalize the registration on the transfer of
technology, and to enhance the enforcement of intellectual property rights in the
Philippines. (n)

 RA 10055
 Rodriguez N F, TODAY’S CHALLENGE: PROTECTING COPYRIGHT IN THE INTERNET, 57 Ateneo L
J 1117 (2013)

B. Copyright: What works are protected? What works are not?

 IP Code
o CHAPTER II ORIGINAL WORKS
o Section 172. Literary and Artistic Works. –
 172.1. Literary and artistic works, hereinafter referred to as "works", are original
intellectual creations in the literary and artistic domain protected from the moment of their
creation and shall include in particular:
1. Books, pamphlets, articles and other writings;
2. Periodicals and newspapers;
3. Lectures, sermons, addresses, dissertations prepared for oral delivery, whether
or not reduced in writing or other material form;
4. Letters;
5. Dramatic or dramatico-musical compositions; choreographic works or
entertainment in dumb shows;
6. Musical compositions, with or without words;
7. Works of drawing, painting, architecture, sculpture, engraving, lithography or
other works of art; models or designs for works of art;
8. Original ornamental designs or models for articles of manufacture, whether or not
registrable as an industrial design, and other works of applied art;
9. Illustrations, maps, plans, sketches, charts and three-dimensional works relative
to geography, topography, architecture or science;
10. Drawings or plastic works of a scientific or technical character;
11. Photographic works including works produced by a process analogous to
photography; lantern slides;
12. Audiovisual works and cinematographic works and works produced by a process
analogous to cinematography or any process for making audio-visual recordings;
13. Pictorial illustrations and advertisements;
14. Computer programs; and
 15. Other literary, scholarly, scientific and artistic works.
 172.2.Works are protected by the sole fact of their creation, irrespective of their mode or
form of expression, as well as of their content, quality and purpose. (Sec. 2, P.D. No.
49a)
o CHAPTER III DERIVATIVE WORKS
o Section 173. Derivative Works. –
 173.1. The following derivative works shall also be protected by copyright:
1. Dramatizations, translations, adaptations, abridgments, arrangements, and other
alterations of literary or artistic works; and
2. 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. (Sec. 2, [P] and [Q], P.D. No. 49)
 173.2.The works referred to in paragraphs (a) and (b) of Subsection 173.1 shall be
protected as new works: Provided however, That such new work shall not affect the force
of any subsisting copyright upon the original works employed or any part thereof, or be
construed to imply any right to such use of the original works, or to secure or extend
copyright in such original works. (Sec. 8, P.D. 49; Art. 10, TRIPS)
o Section 174. Published Edition of Work. –
 In addition to the right to publish granted by the author, his heirs, or assigns, the
publisher shall have a copyright consisting merely of the right of reproduction of the
typographical arrangement of the published edition of the work. (n)
o CHAPTER IV WORKS NOT PROTECTED
o Section 175. Unprotected Subject Matter. –
 Notwithstanding the provisions of Sections 172 and 173, no protection shall extend,
under this law, to any idea, procedure, system, method or operation, concept, principle,
discovery or mere data as such, even if they are expressed, explained, illustrated or
embodied in a work; news of the day and other miscellaneous facts having the character
of mere items of press information; or any official text of a legislative, administrative or
legal nature, as well as any official translation thereof (n)
o Section 176. Works of the Government. –
 176.1. No copyright shall subsist in any work of the Government of the Philippines.
However, prior approval of the government agency or office wherein the work is created
shall be necessary for exploitation of such work for profit. Such agency or office may,
among other things, impose as a condition the payment of royalties. No prior approval or
conditions shall be required for the use of any purpose of statutes, rules and regulations,
and speeches, lectures, sermons, addresses, and dissertations, pronounced, read or
rendered in courts of justice, before administrative agencies, in deliberative assemblies
and in meetings of public character. (Sec. 9, first par., P.D. No. 49)
 176.2.The author of speeches, lectures, sermons, addresses, and dissertations
mentioned in the preceding paragraphs shall have the exclusive right of making a
collection of his works. (n)
 176.3.Notwithstanding the foregoing provisions, the Government is not precluded from
receiving and holding copyrights transferred to it by assignment, bequest or otherwise;
nor shall publication or republication by the Government in a public document of any work
in which copyright is subsisting be taken to cause any abridgment or annulment of the
copyright or to authorize any use or appropriation of such work without the consent of the
copyright owner. (Sec. 9, third par., P.D. No. 49)

 FRANCISCO G. JOAQUIN, JR., and BJ PRODUCTIONS, INC. vs.HONORABLE FRANKLIN DRILON,

GABRIEL ZOSA, WILLIAM ESPOSO, FELIPE MEDINA, JR., and CASEY FRANCISCO

 FILIPINO SOCIETY OF COMPOSERS, AUTHORS AND PUBLISHERS, INC., vs. BENJAMIN TAN