CHAPTER ONE: FORGERIES 

Section One. — Forging the seal of the Government of the Philippine Islands, 

the signature or stamp of the Chief Executive 

Crime  Elements  Important Points to Remember  Penalty 

     
COUNTERFEITING Acts Punished:   1. The President has custody and use of reclusion temporal 
THE GREAT SEAL 1. Forging the Great Seal the Great Seal and shall be affixed to or
OF THE of the Government of the placed upon all commissions signed by
GOVERNMENT OF Philippines   him and upon such other official
THE PHILIPPINE   documents and papers of the country as
ISLANDS, FORGING 2. Forging the signature may by law provided or as may be
THE SIGNATURE OR of the president   required by custom and usage in the
STAMP OF THE   discretion of the president. 
CHIEF EXECUTIVE  3. Forging the stamp of  
the president  2. The offense is not falsification of
Art. 161. The penalty public document but is the crime of
of reclusion forging the signature of the president.  
temporal shall be  
imposed upon any 3. The act punishable is counterfeiting
person who shall forge or making an imitation of the signature
the Great Seal of the of the Chief Executive on what is made
Government of the to appear as an official document of the
Philippine Islands or the Rep. of the Philippines.  
signature or stamp of the
Chief Executive. 

     
USING FORGED 1. That the Great Seal 1. The offender under this article should prision mayor 
SIGNATURE OR of the Republic was not be the forger. 
COUNTERFEIT counterfeited or the  
SEAL OR STAMP  signature or stamp of 2. In using forged signature or stamp of
the Chief Executive was the Chief Executive, or forged seal, the
Art. 162. The penalty forged by another participation of the offender is in effect
of prision mayor shall person   that of an accessory but the provision
be imposed upon any 2. The offender knew of provided for its own penalty as opposed to
person who shall the counterfeiting or the penalty for accessories which is two
knowingly make use forgery   degrees lower than that of the principal 
of the counterfeit seal  
or forged signature or 3. He used the
stamp mentioned in counterfeit seal or
the preceding article.  forged signature or
stamp 

 
 
 Section Two. — Counterfeiting Coins 

Crime  Elements  Important Points to Remember  Penalty 

MAKING AND      
IMPORTING AND 1. There be false or Coin – is a piece of metal stamped 1. Prisión correcciona
UTTERING FALSE counterfeited coins   with certain marks and made current l in its minimum and
COINS    at a certain value   medium periods and a
Art. 163. Any person 2. The offender   fine not to exceed
who makes, imports, either made, Counterfeiting – means the ₱400,000 - if the
or utters false coins, in imported or uttered imitation of a legal or genuine coin; counterfeited coins be
connivance with such coins   there must be an imitation of the any of the coinage of
counterfeiters, or   peculiar design of a genuine coin   the Philippines. 
importers, shall suffer:  3. That in case of     
   uttering such false Import – means to bring them into 2. Prisión correccional 
1. Prisión correcciona or counterfeited port   in its minimum period
l in its minimum and coins, he connived   and a fine not to exceed
medium periods and a with the Utter – means to pass counterfeited ₱200,000 - if the
fine not to exceed four counterfeiters or coins; includes their delivery or act counterfeited coin be
hundred thousand importers  of giving them away  currency of a foreign
pesos (₱400,000), if   country. 
the counterfeited coins Kinds of Coins the Counterfeiting
be any of the coinage of which is Punished:  
of the Philippines.  a. Silver coin of the Philippines or
   coin of the Central Bank of the
2. Prisión correcciona Philippines  
l in its minimum b. Coin of minor coinage of the
period and a fine not to Philippines or of the Central Bank of
exceed two hundred the Philippines  
thousand pesos c. Coin of the currency of a foreign
(₱200,000), if the country 
counterfeited coin be  
currency of a foreign Note: 
country.  1. A coin is false or counterfeited if it
is forged or if it is not authorized by
the government as legal tender,
regardless of its intrinsic value  
2. The Art. Penalize the making,
importing and uttering of false coins,
whether of the Philippines or a
foreign country because it is intended
to protect not only the coins legally
minted but also the public in
general.  
3. A counterfeited coin is uttered
when it is paid, when the offender is
caught counting the counterfeited
coins preparatory to the act of
delivering them, even though the
utterer may not obtain the gain
intended.  
4. Former coins withdrawn from
circulation may be counterfeited
under Article 163. 
 Crime Elements Important Points to Remember Penalty
     
MUTILATION OF Acts Punished:   Mutilation – means to take off part of prisión correccional in
COINS; 1. Mutilating coins of the metal either by filing it or its minimum period and
IMPORTATION AND the legal currency, substituting it for another metal of a fine not to exceed
UTTERANCE OF with further inferior quality; to diminish by ₱400,000 
MUTILATED COINS  requirement that there ingenuous means the metal in the
be intent to damage or coin. 
Art. 164. The penalty to defraud another    
of prisión correccional i   Legal Tender - coins/ bank notes that
n its minimum period 2. Importing or must be accepted if offered in
and a fine not to exceed uttering such mutilated payment of a debt, whether public or
four hundred thousand coins, with the further private. 
pesos (₱400,000) shall be requirement that there  
imposed upon any person must be connivance Note: 
who shall mutilate coins with the mutilator or 1. The coin must be of legal tender
of the legal currency of importer in case of in mutilation  
the Philippines or import uttering   
or utter mutilated current 2. Coins of foreign country not
coins, or in connivance included 
with mutilators or
importers. 

SELLING OF FALSE 1. Possession of coin, 1. Possession of or uttering false coin Penalty lower by one
OR MUTILATED counterfeited or does not require that the counterfeited degree than that
COIN, WITHOUT mutilated by another coin is legal tender   prescribed in said
CONNIVANCE   person, with intent to articles 
  utter the same, 2.Constructive possession (subjection
Art. 165. The person knowing that it is false of the thing to one’s control) and not
who knowingly, although or mutilated   only actual and physical possession is
without the connivance a. Possession   included.  
mentioned in the b. With intent to utter    
preceding articles, shall c. Knowledge   3. Accused must have knowledge of
possess false or mutilated   the fact that the coin is false  
coin with intent to utter 2. Actually uttering  
the same, or shall such false or mutilated 4. Punishable even if the offender was
actually utter such coin, coins, knowing the not in connivance with counterfeiter
shall suffer a penalty same to be false and or mutilator. 
lower by one degree than mutilated    
that prescribed in said a. Actually uttering   5. If the false or mutilated coins are
articles. b. Knowledge found in the possession of the
counterfeiters, or mutilators, or
importers, such possession does not
constitute a separate offense but is
identified with the counterfeiting or
mutilation or importation. 
 
6. If the coin being uttered or
possessed with intent to utter is a
mutilated coin, it must be a legal
tender coin because of Art. 164 in
relation to Art. 165.  
 Section Three. — Forging treasury or bank notes, obligations and securities; importing and uttering false or
forged notes, obligations and securities

Crime Elements Important Points to Remember Penalty

 
FORGING TREASURY OR Acts Punishable:   Obligation or Security – all bonds, certificates of Penalties
BANK NOTES OR OTHER 1. Forging or indebtedness, national bank notes, coupons, treasury depend upon
DOCUMENTS PAYABLE TO falsification of notes, fractional notes, certificates of deposits, bills, the kind of
BEARER; IMPORTING, AND treasury or bank checks, drafts for money, and other representatives of forged treasure
UTTERING SUCH FALSE OR notes or other value under any act of Congress   or bank notes
FORGED NOTES AND documents payable to   or other
DOCUMENTS   bearer   Forging – committed by giving to a treasury or bank documents:
    note or any instrument payable to bearer or to order
Art. 166. The forging or falsification 2. Importation of the appearance of a true and genuine document; to 1. obligation or
of treasury or bank notes or such false or forged forge an instrument is to make false instrument security of the
certificates or other obligations and obligations or notes   intended to be passed for the genuine one   Philippines -
securities payable to bearer and the   Falsification – committed by erasing, substituting, reclusion
importation and uttering in 3. Uttering of such counterfeiting, or altering by any means, the figures, temporal in its
connivance with forgers or importers false or forged letters, words, or signs contained therein   minimum
of such false or forced obligation or obligations or notes   period and a
notes shall be punished as follows:  in connivance with Importation of False or Forged Obligations or fine not to
  the forgers or Notes – means to bring them into the Philippines, exceed
1. By reclusion temporal in its importers  which presupposes that the obligations or notes are ₱2,000,000
minimum period and a fine not to forged or falsified in a foreign country  
exceed two million pesos  
2. circulating
(₱2,000,000), if the document which The code punishes Uttering of False or Forged Obligations or Notes –
note issued by
has been falsified, counterfeited, or forging or means offering obligations or notes knowing them to
any banking
altered is an obligation or security of falsification of bank be false or forged, whether such offer is accepted or
association
the Philippines.  notes and of not, with a representation, by words or actions, that
duly authorized
       The words ‘obligation or security documents of credit they are genuine and with an intent to defraud  
by law to issue
of the Philippines’ shall mean all payable to bearer  
the same -
bonds, certificates of indebtedness, and issued by the Notes and other obligations and securities that
prisión mayor
national bank notes, coupons, State more severely may be forged or falsified under Article 166:  
in its maximum
Philippine notes, treasury notes, that counterfeiting a. Treasury or bank notes 
period and a
fractional notes, certificates of coins because —   b. Certificates  
fine not to
deposit, bills, checks, or drafts for 1) the first tends to c. Other obligations and securities, payable to bearer 
exceed
money, drawn by or upon authorized bring such documents  
₱1,000,000
officers of the Philippines, and other into discredit and the The instrument is payable to bearer when -  
representatives of value, of whatever offense produces a a. expressed to be payable 
denomination, which have been or lack of confidence on b. payable to a person named therein or bearer  3. document
may be issued under any act of the part of the holders c. payable to the order of a fictitious or non-existing issued by a
Congress.  of said document to person and such fact was known to the person foreign
  the prejudice of the making it payable  government -
2. By prisión mayor in its maximum interest of society and d. the name of the payee does not purport to be the arresto mayor
period and a fine not to exceed one of the State.  name of any person     in its medium
million pesos (₱1,000,000), if the e. the only or last endorsement is an endorsement in period and a
falsified or altered documents is a 2) it is easier to forge blank  fine not to
circulating note issued by any or falsify such   exceed
banking association duly authorized certificates, notes Note:  ₱1,000,000
by law to issue the same.  and documents of 1. A bank note, certificate or obligation and security
  credit than to make is payable to bearer when it can be negotiated by 4. circulating
3. By arresto mayor in its medium counterfeited coins mere delivery.  note or bill
period and a fine not to exceed one and the profit derived 2. Uttering of forged bill must be with connivance issued by a
million pesos (₱1,000,000), if the from therefrom is with forgers or importers of such false or forged foreign bank
falsified or counterfeited document greater and the obligations or notes to constitute a violation under duly authorized
was issued by a foreign government.  incentive for the Art. 166.  therefor -
  commission od such 3. The falsification of bank check is not forgery prisión mayor
4. By prisión mayor in its minimum crime more under Art. 166 but falsification of commercial in its minimum
period and a fine not to exceed four powerful.  documents.  period and a
hundred thousand pesos (₱400,000), 4. The falsification of a depository war damage check fine not to
when the forged or altered document for the purpose of cashing the same exceed
is a circulating note or bill issued by a constitutes estafa through falsification of an official ₱400,000
foreign bank duly authorized and commercial document.
therefor.  5. Money bills issued by the Central Bank are
national bank notes.
Crime Elements Important Points to Remember Penalty
COUNTERFEITING,
IMPORTING AND 1. There be an instrument 1. The counterfeiting under this art. involves an prisión
UTTERING payable to order or other instrument payable to order or other document of correccional
INSTRUMENTS NOT document of credit not credit not payable to bearer.    in its medium
PAYABLE TO BEARER 2. It includes such instruments or document of
payable to bearer   and maximum
  credit issued by a foreign government or bank
  periods and a
Art. 167. Any person who because the act punished includes importing
2. The offender either forged, fine not
shall forge, import or utter, in without specifying the country or government
connivance with the forgers imported or uttered such exceeding
issuing them. 
or importers, any instrument instrument   3. Connivance is not required in uttering if the ₱1,200,000.00
payable to order or other   utterer is the forger 
document of credit not 3. In case of uttering, he 4. The instrument is payable to order where it is
payable to bearer, shall suffer connived with the forger or drawn payable to the order of a specified person or
the penalties importer  to him or his order. It is negotiated by endorsement
of prisión correccional in its and delivery. 
medium and maximum 5. Forgery of currency is punished so as to
periods and a fine not maintain the integrity of the currency and
exceeding one million two thus ensure the credit standing of the government
hundred thousand pesos and prevent the imposition on the public and
(₱1,200,000).  the government of worthless notes or obligations. 

ILLEGAL POSSESSION 1. That any treasury or bank 1. To constitute as an offense under Art. 168, the penalty next
AND USE OF FALSE not or certificate or possession of false treasury or bank notes must lower in degree
TREASURY OR BANK other obligation and security be with intent to use the same – intent to possess than that
NOTES AND OTHER prescribed in
payable to bearer, or is not intent to use
INSTRUMENTS OF said articles:
any instrument payable to 2. Possession of false treasury or bank notes
CREDIT 
 
order or other document of alone is not a criminal offense.
Art. 168. Unless the act be credit not payable to bearer 3. Intent to use, although the falsified obligation
one of those coming under is forged or falsified by or notes was not accepted by the person to
the provisions of any of the another person  whom it was handed in the course of a
preceding articles, any person   transaction, is sufficient to consummate the
who shall knowingly use or 2. The offender knows that crime when the offender is in possession of false
have in his possession, with any of those or falsified obligations or notes.
intent to use any of the false instruments is forged or 4. Accused must have knowledge of forged
or falsified instruments falsified  character of the note
referred to in this section,   5. A person in possession of falsified document
shall suffer the penalty next 3. He performs any of these and who makes use of the same is presumed
lower in degree than that acts:  to be the material author of falsification
prescribed in said articles.  a. using any of such forged or 6. It is not an impossible crime when the act
falsified instruments  performed would have been a crime of illegal
b. possessing with intent to possession of false treasury notes
use any of such forged
or falsified instruments

Art. 169. How forgery is

committed. — The forgery Forgery is Committed: Forgery includes falsification and
referred to in this section may a. By giving to a treasury or counterfeiting:
be committed by any of the bank note or any instrument a) acts of counterfeiting or forging said
following means:  payable to bearer or to order instruments
  1. By giving to a treasury or mentioned therein, the b) acts of falsification
bank note or any instrument, appearance of a true and
payable to bearer or order genuine document
mentioned therein, the Note:
appearance of a true * Defacement, mutilation, tearing, burning or
b. By erasing, substituting, destroying of Central Bank notes and coins are
genuine document. 
 2. By erasing, substituting, counterfeiting, or altering by penalized under PD No. 247
counterfeiting or altering by any means the figures, letters, Penalty: fine of not more than ₱20,000.00 and/or
words, or sign contained
any means the figures, letters, therein imprisonment of not more than 5 years
words or signs contained
therein.

Section Four. — Falsification of legislative, public, commercial, and private documents,

and wireless, telegraph, and telephone message

Crime Elements Important Points to Remember Penalty

FALSIFICATION
OF LEGISLATIVE 1. That there be a bill, resolution or 1. Bill, resolution or ordinance must be prisión
DOCUMENTS ordinance enacted or approved or genuine correccional in
pending approval by either House of its maximum
Art. 170. The penalty the Legislature or any provincial board 2. The offender should be someone who has and a fine not
of prisión or municipal council no proper authority to make the alteration. to exceed
correccional in its ₱1,200,000.00
maximum and a fine 2. The offender alters the same 3. The act of falsification in legislative
not to exceed one document is limited to altering it which
million two hundred 3. He has no proper authority therefore changes its meaning
thousand pesos
(₱1,200,000) shall be 4. The alteration has changed the 4. Falsification under Art. 170 is committed
imposed upon any meaning of the document by altering a legislative document, which
person who, without presupposes that the bill, etc. altered must be
proper authority genuine – enacted or approved or pending
therefor alters any bill, approval by the Congress or any provincial
resolution, or board or municipal council.
ordinance enacted or
approved or pending
approval by either
House of Congress or
any provincial board
or municipal council.

FALSIFICATION 1. Offender is a public officer, 1. In falsification by making alteration or

BY PUBLIC employee or notary public intercalation or including in a copy a
OFFICER, different statement, there must be a genuine document that is
EMPLOYEE OR 2. He takes advantage of his official falsified; in other paragraphs, falsification may be committed
NOTARY OR position by simulating or fabricating a document
ECCLESIASTIC (a) He has duty to make or to prepare 2. If the offender was a public officer but did not take
MINISTER or otherwise intervene in the advantage of his official position, he shall be liable for
preparation of the document; or falsification under Art. 172
Art. 171. The penalty (b) He has the official custody of the
of prisión mayor and a document which he falsifies Document – any writing or instrument by which a right is
fine not to exceed one established or an obligation extinguished; and by which a fact
million pesos 3. That he falsifies a document by may be proven and affirmed.
(₱1,000,000) shall be committing any of the following acts: (a) It is not necessary that the document be real, it is enough
imposed upon any that it be given the appearance of a genuine document and it
public officer, (1.) counterfeiting or imitating or must be of apparent legal efficacy.
employee, or notary feigning any handwriting, signature or (b) Even if the document is originally a private document, if it
who, taking advantage rubric is in the official custody of the public officer or employee or if
of his of position shall i. that there be an intent to imitate, it is falsified by the public officer or employee, the crime
falsify a document by or an attempt to imitate committed should be punished under Art. 171.
committing any of the ii. that the two signatures or
following acts: handwritings, the genuine and the Paragraph 1
forged, bear some resemblance to each Counterfeiting – imitating any handwriting, signature or
1. Counterfeiting or other rubric
using any handwriting, Feigning – simulating a signature, handwriting or rubric out of
signature or rubric; (2) causing it to appear that persons one which does not in fact exist
have participated in any act or (a) The signature, handwriting or mark of another person must
2. Causing it to appear proceeding when they did not in fact so be signed or made by the offender, without authority to do so
that persons have participate (b) In feigning, there is no original signature, handwriting or
participated in any act i. the offender caused it to appear in rubric that does not exist.
or proceeding when a document that a person(s)
they did not in fact so participated in an act or proceeding
participate; ii. that such person(s) did not in fact
so participate in the act or proceeding
3. Attributing to (3) Attributing to person who have Paragraph 2
persons who have participated in an act or proceeding (a) When the “causing to appear that persons have participated
participated in an act statements other than those in fact in any act or proceeding when they did not in fact so
or proceeding made by them participate” is committed by a private individual, Article 172
statements other than i. that a person(s) participated in an should apply.
those in fact made by act or
them; proceeding Paragraph 3
ii. that such person(s) made (a) Counterfeiting in a document the intervention of another to
4. Making untruthful statements in that act or proceeding whom the offender ascribed statements different from what the
statements in a iii. that the offender, in making the other party had made to him and by perverting the truth in the
narration of facts; document, attributed to such person(s) narration of facts, through deceit, getting them to sign said
statements other than those in fact document, is a crime under par. (3) of Art. 171.
5. Altering true dates; made by such person(s)
Paragraph 4
6. Making any (4) Making untruthful statements in a Legal Obligation – there is a law requiring the disclosure of
alteration or narration of facts the truth of the facts narrated
intercalation in a i. that the offender makes in a (a) Perversion of truth must be made with the wrongful intent
genuine document document statements in a narration of of injuring a third person (document is a private instrument)
which changes its facts (b) Wrongful intent is not essential when the document
meaning; ii. that he has a legal obligation to falsified is a public document
disclose the truth of the facts narrated (c) The person making the narration of facts must be aware of
7. Issuing in an by him the falsity of the facts narrated by him
authenticated form a iii. that the facts narrated by the (d) There must be a narration of facts, not of conclusion of law
document purporting offender are absolutely false (e) Good faith is a defense
to be a copy of an (f) Falsification by omission is punishable
original document (5) Altering true dates (g) If the statement is not altogether false, there being some
when no such original colorable truth in such statements, the crime of falsification is
exists, or including in (6) Making any alteration or not deemed to have been committed.
such a copy a intercalation in a genuine (h) The fact that one’s consent to a contract was obtained by
statement contrary to, document which changes its meaning means of violence does not make the facts narrated therein
or different from, that i. that there be an alteration false
of the genuine (change) or intercalation (insertion) on
original; or a document Paragraph 5
ii. that it was made a genuine (a)The date(s) must be essential, the alteration of which in a
8. Intercalating any document document must affect either the veracity of the document or the
instrument or note iii. that the alteration or intercalation effects thereof to constitute a crime under Art. 171(5).
relative to the issuance has changed the meaning of the
thereof in a protocol, document Paragraph 6
registry, or official iv. that the change made the (a) Alteration in violation of the law is one which cause the
book. document speak something false instrument to speak a language different in legal effects from
that which it originally spoke.
The same penalty (7) Acts Punished: (b) Alteration which speaks the truth is not falsification but
shall be imposed upon i. purporting to be a copy of an merely correction
any ecclesiastical original when no such original exists
minister who shall ii. including in a copy of a statement Paragraph 7
commit any of the contrary to, or different from, that of (a) Such acts can only be made by a public officer or notary
offenses enumerated the genuine original public who takes advantage of his official position, since the
in the preceding authentication of a document can be made only by the
paragraphs of this (8) Intercalating any instrument or note custodian or the one who prepared and retained a copy of the
article, with respect to relative to the issuance thereof in a original document.
any record or protocol, registry or official book. (b) A private person who cooperates with a public officer in
document of such the falsification of a public document is guilty of the crime and
character that its 4. In case the offender is an incurs the same liability and penalty as the public officer
falsification may ecclesiastical minister, the act of (c) Intent to gain or prejudice to a third person is not necessary
affect the civil status falsification is committed with because it is the interest of the community which is intended to
of persons respect to any record or document of be guaranteed by the strictest faithfulness of the officials
such character that its falsification charged with the preparation and preservation of the acts in
may affect the civil status of persons which they intervene.
 Crime Elements Important Points to Remember Penalty

FALSIFICATION Acts Punished and their Four Kinds of Documents prisión

BY PRIVATE Requisites: 1. Public Document – created, executed or issued by a public official correccional in
INDIVIDUAL 1. Falsification of public, in response to exigencies of public service, or in execution of which its medium and
AND USE OF official or commercial a public official intervened (any instrument authorized by a notary maximum periods
FALSIFIED document by a public or a competent public official with the solemnities required by and a fine of not
DOCUMENTS private individual law) more than
a) that the offender is a 2. Official Document – issued by a public official in exercise of the ₱1,000,000.00
Art. 172. The private individual or a public functions of his office
penalty of prisión officer or employee who did 3. Private Documents – deed or instrument executed by a private
correccional in its not take advantage of his person without the intervention of notary public or other person
medium and official position legally authorized, by which document some disposition or
maximum periods b) that he committed any agreement is proved, evidenced or set forth
and a fine of not of the acts of falsification 4. Commercial Documents – documents used by merchants or
more than One enumerated in Article 171 businessmen to promote or facilitate trade
million pesos c) that the falsification
(₱1,000,000) shall was committed in a public or Public Writing under Rules of Court
be imposed upon: official or commercial 1. written official acts or records of official acts of the sovereign
document authority, official bodies and tribunals and public officers, whether
1. Any private of the Philippines or of a foreign country
individual who shall 2. Falsification of private 2. documents acknowledge before a notary public except last will
commit any of the document by any person and testaments
falsifications a) that the offender 3. public records kept in the Philippines of private documents
enumerated in the committed any of the acts of required by law to be entered therein
next preceding falsification, enumerated in Note:
article in any public Article 171 [except those in (a) All other documents are private (Sec. 19, Rule 132)
or official document par (7)] (b) A private document may acquire the character of a public
or letter of exchange b) that the falsification document when it becomes part of an official record and is certified
or any other kind of was committed in any by a public officer duly authorized by law.
commercial private document
document; c) that the falsification Paragraph 1
caused damage to a third (a) Mere blank form of official document is not in itself a document
2. Any person who, party or at least the (b) Possessor of falsified document is presumed to be author of
to the damage of a falsification was committed falsification
third party, or with with intent to cause such (c) Damage or intent to cause damage is not necessary in par 1
the intent to cause damage (d) Good faith and lack of malice or criminal intent is a good defense
such damage, shall in falsification of public document
in any private 3. Use of falsified document (e) Falsification of public document may be done through reckless
document commit Introducing in Judicial imprudence.
any of the acts of Proceeding: (f) When the offender commits on a document any acts of
falsification a) that the offender knew falsification as a necessary means to commit another crime, like
enumerated in the that a document was falsified estafa, theft or malversation, the two crimes form a complex crime,
next preceding by another person only when the document falsified is a public, official or commercial.
article; and b) that the false document
is embraces in Article 171 or Paragraph 2
3. Any person who in any subdivision no 1 or 2 Mere falsification is not enough; requires:
shall knowingly or Article 172 1. offender must have counterfeited the false
introduce in c) that he introduced said document
evidence in any document in evidence in any 2. offender must have performed an independent
judicial proceeding judicial proceeding act which operates to prejudice a third person
or to the damage of Note:
another or who, Use in Any Other (a). The acts of falsification in par. (7) of Art. 171 cannot be
with the intent to Transaction: committed by a private individual since authentication of a document
cause such damage, a) that the offender knew can only be made by a public official who serves as the custodian.
shall use any of the that a document was falsified (b). Damage need not be material nor the offender necessary profited
false documents by another person or hope to profit by falsification
embraced in the b) that the false document (c) In falsification of a private document, there is no crime unless
next preceding is embraced in Article 171 or another fact, independent of falsifying the document, is proved –
article, or in any of in any of subdivision no. 1 or damage or intent to cause damage.
the foregoing 2 of Article 172
subdivisions of this c) that he used such Paragraph 3
article, shall be document (not in judicial User is deemed author of falsification if:
punished by the proceedings) (a) the use was so closely connected in time with falsification
penalty next lower d) that the use of the false (b) the user had the capacity of falsifying the document
in degree documents caused damage to Note:
another or at least it was 1. Damage is not necessary in crime of introducing in judicial
used with intent to cause proceedings; but the intent to cause damage, at least, is required in
such damage use of falsified document in proceeding not judicial.

Crime Elements Important Points to Penalty

Remember

FALSIFICATION Acts Punishable: 1. Private individual cannot 1. prision correccional in

OF WIRELESS, 1. Uttering fictitious wireless, be a principal by direct its medium and maximum
CABLE, telegraph or telephone message participation in falsification periods - utters fictitious
TELEGRAPH AND of any system of telegraphic dispatches wireless, telegraph or
TELEPHONE a) That the offender is an telephone message of any
MESSAGES, AND officer or employee of the 2. Private individual may system or falsifies the same
USE OF SAID government or of a private be held liable as principal
FALSIFIED corporation, engaged in the by inducement in 2. penalty next lower in
MESSAGES service of sending or receiving falsification of telegraph degree (arresto mayor)-
wireless, cable or telephone dispatches or telephone any person who use such
Art. 173. The penalty message messages falsified dispatch to the
of prision b) That the offender utters prejudice of a third party or
correccional in its fictitious wireless, cable, 3. If the private individual with the intent of cause
medium and telegraph or telephone message knowingly uses any such prejudice
maximum periods falsified wireless, cable or
shall be imposed upon telephone messages to the
officer or employee of 2. Falsifying wireless, telegraph prejudice of a third person,
the Government or of or telephone message of any or with intent to cause the
any private system same, it is not necessary
corporation or concern a) That the offender is an that he be connected with
engaged in the service officer or employee of the such corporation – Act. No.
of sending or government or of a private 1851, Sec. 4 punishes
receiving wireless, corporation, engaged in the private individuals who
cable or telephone service of sending or receiving forge or alter telegram
message who utters a wireless, cable or telephone
fictitious wireless, message
telegraph or telephone b) That the offender falsifies
message of any system wireless, cable, telegraph or
or falsifies the same. telephone message

Any person who

shall use such falsified 3. Using such falsified message
dispatch to the a) That the accused knew
prejudice of a third that wireless, cable, telegraph, or
party or with the intent telephone message was falsified
of cause such by any of the person specified in
prejudice, shall suffer the 1st paragraph of Article 173
the penalty next lower b) that the accused used such
in degree falsified dispatch
c) that the use of the falsified
dispatch resulted in the prejudice
of a 3rd party, or that the use
thereof was with intent to cause
such prejudice
 Section Five. — Falsification of medical certificates, certificates of merit or services and the like

Crime Elements Important Points to Remember Penalty

FALSE MEDICAL Persons Liable: Certificate – any writing by arresto mayor in its
CERTIFICATES, FALSE which maximum period to
CERTIFICATES OF 1. Physician or Surgeon – must testimony is given that a fact has prisión correccional in
MERITS OR SERVICE, ETC. refer to illness or injury of a or has not taken place its minimum period
person; called “False Medical and a fine not to
Art. 174. The penalties of Certificate by a Physician” Note: exceed ₱200,000.00
arresto mayor in its maximum 1. Falsification of certificate of
period to prisión correccional in 2. Public Officer – includes large cattle is now covered by
its minimum period and a fine merit, service, good conduct or Article 171 or 172 and not 174
not to exceed two hundred similar circumstances; called
thousand pesos (₱200,000) shall “False Certificate of Merit or 2. Falsification of certificate of
be imposed upon: Service by a Public Officer” good moral and certificate of
residence includes in this Article.
1. Any physician or surgeon
who, in connection with the
practice of his profession, shall 3. Private Individual – “False arresto mayor
issue a false certificate Medical Certificate by a Private
Individual” or “False Certificate
2. Any public officer who shall of Merit by a Private Individual”
issue a false certificate of merit
of service, good conduct or
similar circumstances.

The penalty of arresto mayor

shall be imposed upon any
private person who shall falsify
a certificate falling within the
classes mentioned in the two (2)
preceding subdivisions.

USING FALSE 1. that the physician or surgeon arresto menor

CERTIFICATES had issued a false medical
certificate, or a public officer
Art. 175. The penalty of arresto had issued a false certificate
menor shall be imposed upon of merit or service, good
any one who shall knowingly conduce or similar circumstance,
use any of the false certificates or a private person had falsified
mentioned in the next preceding any of said certificates
article
2. that the offender knew that the
certificate was false

3. that he used the same

 Section Six. — Manufacturing, importing and possession of instruments or implements intended for the
commission of falsification

Crime Elements Important Points to Remember Penalty

MANUFACTURING 1. Making or introducing in to the 1. Implements confiscated need not prisión correccional in
AND POSSESSION OF Philippines any stamps, dies, form a complete set for counterfeiting its medium and
INSTRUMENTS OR marks or other instruments or or falsification maximum periods and
IMPLEMENTS FOR implements for counterfeiting or a fine not to exceed
FALSIFICATION falsification 2. The possession prohibited is ₱1,000,000.00
possession in general – not only actual
Art. 176. The penalty of 2. Possessing with intent to use and physical possession but also
prisión correccional in its the instruments or constructive possession or the
medium and maximum implements for counterfeiting or subjection of the thing to one’s
periods and a fine not to falsification made in or control.
exceed one million pesos introduced into the Philippines by
(₱1,000,000) shall be another person
imposed upon any person
who shall make or
introduce into the
Philippines any stamps,
dies, marks, or other
instruments or implements
intended to be used in the
commission of the offenses
of counterfeiting or
falsification mentioned in
the preceding section of
this Chapter.

Any person who, with

the intention of using them,
shall have in his possession
any of the instruments or
implements mentioned in
the preceding paragraphs,
shall suffer the penalty
next lower in degree than
that provided therein.
CHAPTER TWO: OTHER FALSIFICATIONS

Sec. One. — Usurpation of authority, rank, title, and improper use of names, uniforms and insignia

Crime Elements Important Points to Remember Penalty

Two Ways of Committing the
USURPATION OF Crime: Usurper – one who introduces himself prision
AUTHORITY OR 1. By knowingly and falsely into an office that is vacant, or who, correccional in
OFFICIAL FUNCTIONS representing oneself to be an without color of title, ousts the its minimum and
officer, agent or representative incumbent and assumes to acts as an medium periods
Art. 177. Any person who of any department or agency of officer by exercising some of the
shall knowingly and falsely the Philippine Government or functions of the office.
represent himself to be an any foreign government
officer, agent or representative - In usurpation of authority, Note:
of any department or agency of the mere act of knowingly 1. There must be positive, express and
the Philippine Government or and falsely representing explicit representation – the offender
of any foreign government, or oneself to be an officer, etc. is should have represented himself to be
who, under pretense of official sufficient; it is not necessary an officer, agent or representative of
position, shall perform any act that he performs an act any department or agency of the
pertaining to any person in pertaining to a public officer government; or should have performed
authority or public officer of an act pertaining to a person in
the Philippine Government or 2. By performing any act authority or public officer
any foreign government, or any pertaining to any person in 3. The act performed, without the
agency thereof, without being authority or public officer of the offender being lawfully entitled to do
lawfully entitled to do so, shall Philippine Government or of a so, must pertain to the government, or
suffer the penalty of prision foreign government or any to any person in authority, or to any
correccional in its minimum agency thereof, under pretense public officer
and medium periods. of official position, and without 4. Usurpation of authority or official
being lawfully entitled to do so functions of any officer of any foreign
- In usurpation of official government is also punished under the
functions, it is essential that Article
the offender should have 5. False representation may be shown
performed an act pertaining by acts
to a person in authority or 6. Article 177 may be violated by a
public officer, in addition to public officer
other requirements

SIMILAR LAWS

REPUBLIC ACT No. 75 Section 1. Any person who shall falsely assume and take upon himself to act Fine of not more
An act to penalize acts which as a diplomatic, consular, or any other official of a foreign government duly than ₱5,000.00
would impair the proper accredited as such to the Government of the Republic of the Philippines with or imprisonment
observance by the republic and intent to defraud such foreign government or the Government of the of not more than
inhabitants of the Philippines Philippines, or any person, or in such pretended character shall demand or five years, or
of the immunities, right, and obtain, or attempt to obtain from person or from said foreign government or both,
privileges of duly accredited the Government of the Philippines, or from any officer thereof, any money,
foreign diplomatic and paper, document, or other thing, of value, shall be fined not more than five in addition to the
consular agents in the thousand pesos, or shall be imprisoned for not more than five years, or both, penalties that
Philippines in addition to the penalties that may be imposed under the Revised Penal may be imposed
Code. under the RPC

REPUBLIC ACT NO. 10 Section 1. Any person who, with or without pretense of official position, Imprisonment of
An act penalizing usurpation of shall perform any act pertaining to the Government, or to any person in not less than two
public authority authority or public officer, without being lawfully entitled to do so, shall be years nor more
punished with imprisonment for not less than two years nor more than ten than ten years
 years.

Crime Elements Important Points to Remember Penalty

USING FICTITIOUS Using Fictitious Name: Fictitious Name – any other name which a arresto mayor
NAME AND 1. The offender uses a name person publicly applies to himself without and a fine not to
CONCEALING TRUE other than his real name authority of law exceed
NAME 2. He uses that fictitious name ₱100,000.00 –
publicly Distinction Between Use of Fictitious Name publicly using a
Art. 178. The penalty of 3. The purpose of the offender and Concealing True Name: fictitious name
arresto mayor and a fine is to: 1. In use of fictitious name, the element of for the purpose
not to exceed one hundred
(a) conceal a crime publicity must be present; in concealing true of concealing a
thousand pesos (₱100,000)
(b) evade the execution of name, that element is not necessary crime, evading
shall be imposed upon any
person who shall publicly a judgment 2. The purpose of use of fictitious name is any the execution of
use a fictitious name for the (c) cause damage to public of those enumerated; in concealing true name, it a judgment or
purpose of concealing a interest is merely to conceal identity’ causing damage
crime, evading the
execution of a judgment or Concealing True Name: Note: arresto menor or
causing damage. 1. That the offender conceals 1. If the purpose is for causing damage, it must a fine not to
Any person who his true name and all other be damage to public interest; otherwise (private exceed
conceals his true name and circumstances interest) the rime is estafa ₱40,000.00 –
other personal 2. That the purpose is only to 3. Where a person takes the place of another concealment of
circumstances shall be conceal his identity who has been convicted by final judgment, true name and
punished by arresto menor he is guilty of using a fictitious name other personal
or a fine not to exceed forty punishable under this Article circumstances
thousand pesos (₱40,000). 4. The intent to publicly use the alias must be
manifest – that the user of the alias mut have
held himself be known under that other name
5. REPUBLIC ACT No. 6085 – laws regulating
the use of aliases

ILLEGAL USE OF 1. That the offender makes use 1. Wearing the uniform of an imaginary office is arresto mayor
UNIFORMS OR of insignia, uniform or dress not punishable
INSIGNIA
2. That the insignia, uniform 2. An exact imitation of a uniform or dress is
Art. 179. The penalty of or dress pertains to an office unnecessary, it is sufficient that there is a
arresto mayor shall be not held by the offender or to a colorful resemblance calculated to deceive the
imposed upon any person class of persons of which he is common run of people or those who ere not
who shall publicly and not a member thoroughly familiar with every detail or
improperly make use of
accessory thereof.
insignia, uniforms or dress
3. That said insignia, uniform
pertaining to an office not
held by such person or to a or dress is used publicly and Other Laws
class of persons of which improperly 1. RA No. 75 (Sec. 3) – punishes the use of
he is not a member. uniform, decoration or regalia of a foreign State
2. RA No. 493 – punishes the wearing of
insignia, badge or emblem of rank of the
members of the Armed Forces or the
Constabulary
3. EO No. 297 – punishes illegal manufacturing,
sales, distribution and use of PNP uniforms,
insignia and other accoutrements.
 Section Two. — False testimony

Crime Elements Important Points to Remember Penalty

False testimony against a 1. That there be a False Testimony – committed by a person Penalty for false
defendant criminal proceeding who, being under oath and required to testimony against the
testify as to the truth of a certain matter at defendant in a criminal
Art. 180. Any person who shall 2. That the offender a hearing before a competent authority, case depends upon
give false testimony against the testifies falsely under shall deny the truth or say something the sentence imposed on
defendant in any criminal case oath against the contrary to it the person against
shall suffer: defendant therein whom the false testimony
1. The penalty of reclusion Nature of Crime of False Testimony – was given
temporal, if the defendant in 3. That the offender particularly odious when committed in
said case shall have been who gives false judicial proceedings, as it constitutes an 1.) reclusion temporal –
sentenced to death; testimony knows that imposition upon the court and seriously defendant shall have been
2. The penalty of prisión it is false exposes it to a miscarriage of justice sentenced to death
mayor, if the defendant shall 2.) prisión mayor –
have been sentenced to 4. That the defendant Note: defendant shall have been
reclusion temporal or reclusion against whom the 1.Defendant must be sentenced at least to a sentenced to reclusion
perpetua; false testimony is correctional penalty, or a fine, or must be temporal or reclusion
3. The penalty of prisión given is either acquitted; otherwise the crime is not perpetua
correccional, if the defendant acquitted or committed. 3.) prisión correcciona
shall have been sentenced to convicted in a final 2. The four cases uniformly presuppose a and fine not to exceed
any other afflictive penalty; and judgment final judgement of conviction or acquittal ₱200,000.00 – defendant
4. The penalty of arresto in the basic case as a prerequisite to the shall have been sentenced
mayor, if the defendant shall actionability of the crime of false to any other afflictive
have been sentenced to a testimony against the defendant. penalty
correctional penalty or a fine, (False testimony is 3. Witness who gave false testimony is 4.) arresto mayor and fine
or shall have been acquitted. punished because of liable even if his testimony was not not to exceed
In cases provided in its tendency to favor considered by the court as the law intends ₱200,000.00 – defendant
subdivisions 3 and 4 of this or to prejudice the to punish the mere giving of false shall have been sentenced
article the offender shall further defendant) testimony. to a correctional penalty
a fine not to exceed two or a fine, or shall have
hundred thousand pesos been acquitted.
(₱200,000).

FALSE TESTIMONY 1. That there be a Nature of the Crime – false testimony 1. arresto mayor in its
FAVORABLE TO THE criminal proceeding favorable to the defendant is equally maximum period of
DEFENDANT repugnant to the orderly administration of prisión correccional in its
2. That the offender justice minimum period and a
Art. 181. Any person who shall testifies falsely under fine not to exceed
give false testimony in favor of oath against the 1. False testimony by negative statement is ₱200,000.00 – falsely
the defendant in a criminal defendant therein in favor of defendant testifying in a criminal
case, shall suffer the penalties 2. The conviction or acquittal is not case in favor of the
of arresto mayor in its 3. That the offender necessary. It is sufficient that the defendant defendant
maximum period of prisión who gives false in the principal case is prosecuted for a
correccional in its minimum testimony knows that felony punishable by afflictive or other 2. arresto mayor in any
period and a fine not to exceed it is false penalty. other case – prosecution is
two hundred thousand pesos 3. The false testimony favorable to the for a felony punishable by
(₱200,000), if the prosecution defendant need not benefit the defendant. an afflictive penalty
is for a felony punishable by an It is sufficient that it was given with the
afflictive penalty, and the intent to favor the defendant.
penalty of arresto mayor in any 4. The gravity of the crime for which the
other case. defendant was prosecuted in the case
 where the false testimony was given
should be shown in order to determine the
proper penalty to be imposed on the false
witness.
5. Rectification made spontaneously after
realizing the mistake is not false testimony

Crime Elements Important Points to Remember Penalty

FALSE TESTIMONY 1. That the testimony Civil Action - an ordinary suit in court of justice by which Penalty depends on
IN CIVIL CASES must be given in a one party prosecutes another for the enforcement or amount of the
civil case protection of a right, or the prevention or redress of wrong Controversy
Art. 182.  Any person
found guilty of false 2. That the testimony Note: 1. prisión
testimony in a civil case must relate to the 1. Article 182 is not applicable when the false testimony is correccional in its
shall suffer the penalty of issues presented in given in special proceedings – every remedy is a special minimum period and
prisión correccional in its said case proceeding. a fine not to exceed
minimum period and a fine ₱1,200,000.00 – the
not to exceed one million
3. That the testimony 2. The falsity of the testimony must first be established – amount in
two hundred thousand
must be false whether or not the testimonies of respondents in the civil controversy shall
pesos (₱1,200,000), if the
amount in controversy shall case are false is prejudicial question – the civil case is so exceed
exceed one million pesos 4. That the false intimately connected with the subject crime that it is ₱1,000,000.00
(₱1,000,000), and the testimony must be determinative of the guilt or innocence of the respondents
penalty of arresto mayor in given by the in the criminal case. Hence, pending the determination of 2. arresto mayor in
its maximum period to defendant the falsity of the subject testimonies of the respondents in its maximum period
prisión correccional in its knowing the same to the civil case, the criminal action for false testimony must to prisión
minimum period and a fine be false perforce be suspended. correccional in its
not to exceed two hundred minimum period and
thousand pesos (₱200,000), 5. That the testimony a fine not to
if the amount in must be malicious ₱200,000.00 – if the
controversy shall not and given with an amount in
exceed said amount or intent to affect the controversy shall not
cannot be estimated. issues presented in exceed
said case ₱1,000,000.00 or
cannot be estimated

FALSE TESTIMONY 1. That the accused Perjury – an offense which covers false oaths other than arresto mayor in its
IN OTHER CASES made a statement those taken in the course of judicial proceedings (an actual maximum period to
AND PERJURY IN under oath or trial where a judgement of conviction or acquittal is prision correccional
SOLEMN executed an affidavit rendered) in its minimum
AFFIRMATION upon a material period
matter Subornation of Perjury – committed by a person who
Art. 183. The penalty of knowingly and willfully procures another to swear falsely
arresto mayor in its 2. That the statement and the witness suborned does testify under circumstances
maximum period to or affidavit was made rendering him guilty
prision correccional in its before a
minimum period shall be competent officer, Oath – any form of attestation by which a person signifies
imposed upon any person, authorized to receive that he is bound in conscience to perform an act faithfully
who knowingly makes and and truthfully
untruthful statements and administer oath
not being included in the Affidavit – sworn statement in writing; a declaration in
provisions of the next 3. That in the writing, made upon oath before an authorized magistrate or
preceding articles, shall statement or affidavit, officer
testify under oath, or the accused made a
make an affidavit, upon willful and deliberate Material Matter – it is the main fact which is the subject
any material matter before assertion of a of the inquiry or any circumstance which tends to prove
a competent person falsehood that fact, or any fact or circumstance which tends to
authorized to administer corroborate or strengthen the testimony relative to the
an oath in cases in which 4 That the sworn subject of inquiry, or which legitimately affects the credit
the law so requires. statement or affidavit of any witness who testifies
Any person who, in case containing the falsity
of a solemn affirmation is required Competent Person Authorized to Administer Oath – a
made in lieu of an oath, (authorized) by law person who has a right to inquire into the questions
shall commit any of the presented him upon matters under his jurisdiction
falsehoods mentioned in Two ways of
this and the three Committing Perjury Note:
preceding articles of this 1. By falsely 1. False statement under oath and a false affidavit may be
section, shall suffer the testifying under oath made the basis of the charge of perjury.
respective penalties
provided therein. 2. By making a false
affidavit

2. There must be competent proof of materiality:

(a) Material – when it is directed to prove a fact in issue
(b) Relevant – when it tends in any reasonable degree to
establish the probability or improbability of a fact in issue
(c) Pertinent – when it concerns collateral matters which
make more or less probable the proposition at issue.

3. The true test of materiality is whether a false statement

can influence the tribunal and not on the probability of its
influence on the result of the trial.

4. If the false testimony given by the witness is not

important, essential or material to the principal matter
under investigation, it cannot properly be held that perjury
is committed.

3. The assertion of falsehood must be willful and deliberate

(knowingly making untruthful statements)

4. Even if there is no law, requiring the statement to be

made under oath, it is sufficient that the oath had been
administered with a view of carrying into effect a legal
purpose intended.

5. Two contradictory sworn statements are not sufficient to

convict of perjury. The prosecution must prove which of
the two statements is false and must show that statement to
be false by other evidence other than the contradictory
statement.

OFFERING FALSE 1. That the offender Offer of Evidence – begins the moment a witness is called Respective penalties
TESTIMONY IN offered in evidence a to the witness stand and interrogated by counsel (the provided in this
EVIDENCE false witness or false witness must testify) section
testimony
Art. 184. Any person who 1. Art. 184 requires that a false witness or testimony
shall knowingly offer in 2. That he knew the consummate the offense – that the witness or the testimony
evidence a false witness witness or the must be offered in evidence.
or testimony in any testimony was false
judicial or official 2. Art. 184 contemplates a case where a person, without
proceeding, shall be 3. That the offer was inducing another, but knowing him to be a false witness,
punished as guilty of false made in a judicial or presented him and the latter testified falsely in a judicial or
testimony and shall suffer official proceeding official proceeding.
the respective penalties
provided in this section. 3. Even if there was conspiracy between false witness and
party who presented him, the witness having desisted
before he could testify on any material matter, he is NOT
liable, because desistance during the attempted stage of
execution is an absolutory cause which exempts him from
criminal liability

4. The accused shall be punished as guilty of false

testimony and shall suffer the respective penalties provided
for false testimony and perjury.
CHAPTER THREE: FRAUDS
Section One. — Machinations, monopolies and combinations
Crime Elements Important Points to Remember Penalty

MACHINATIONS IN 1. By soliciting any gift or Bid Manipulation (Big Rigging or Collusive prision correccional
PUBLIC AUCTIONS promise as a consideration Tendering) – occurs when business, that would in its minimum
for refraining from taking otherwise be expected to compete, secretly period and a fine
Art. 185. Any person part in any public auction conspire to raise prices or lower the quality of ranging from 10% to
who shall solicit any gift (a) That there be a public goods or services for purchases who wish to 50% of the value of
or promise as a auction acquire products or services through a bidding the thing auctioned
consideration for (b) That the accused solicited
refraining from taking any gift or promise from any Reason for the Provision – execution sales
part in any public of the bidders should be opened to free and full competition
auction, and any person (c) That such gift or promise in order to secure the maximum benefit for the
who shall attempt to was the consideration for his debtors
cause bidders to stay refraining from taking part in
away from an auction by that public auction Common Bid Manipulation Practices
threats, gifts, promises, (d) That the accused had the 1. Bid Cover – occurs when individuals or
or any other artifice, intent to cause the reduction firms agree to submit bids that involve at least
with intent to cause the of the price of the thing one of the following:
reduction of the price of auctioned (a) a competitor agrees to submit a bid that is
the thing auctioned, shall higher than the bid of the designated winner
suffer the penalty of 2. By attempting to cause (b) a competitor submits a bid that is known
prision correccional in bidders to stay away from an to be too high to be accepted
its minimum period and auction by threats, gifts, (c) a competitor submits a bid that contains
a fine ranging from 10 to promises or any other artifice special terms that are known to be unacceptable
50 per centum of the (a) That there be a public to the purchase
value of the thing auction 2. Bid Suppression – involves agreements
auctioned. (b) That the accused among competitors in which one or more
attempted to cause the companies agree to refrain from bidding or to
bidders to stay away from the withdraw a previously submitted bid so that the
public auction (c) That is was designated winner’s bid will be accepted
done by threats, gifts, 3. Bid Rotation – conspiring firms continue to
promises or any other artifice bid but they agree to take turns being the
(d) That the accused had the winning bidder.
intent to cause the reduction 4. Market Allocation – competitors carve up
of the price of the thing the market and agree not to compete for certain
auctioned customers or in certain geographic areas.

Note:
1. Crime is consummated by mere solicitation
of gift or promise as consideration for not
bidding.
2. “Other artifice” includes the use of trickery
3. An attempt to cause prospective bidders to
stay away from an auction by means of threats,
gifts, etc, with the intent that the thing
auctioned should command a lesser price, is
sufficient to constitute an offense
4. The threat need not be effective nor the offer
or gift accepted for the crime to arise
5. The Philippine Competition Act prohibits
fixing pries at an auction or in any form of
bidding – an agreement between or among
 competitors fixing prices at an auction or in any
form of bidding, including cover bidding, bid
suppression, bid rotation and market allocation
and other analogous practices of bid
manipulation are per se prohibited.

Crime Elements Important Points to Remember Penalty

MONOPOLIES AND COMBINATIONS Acts Punished as Monopolies: 1. The theory in penalizing prision
IN RESTRAINT OF TRADE 1. Combination to prevent free monopolies and combinations in correccional in
competition in the market restraint of trade is that competition, its minimum
Art. 186. The penalty of prision – by entering into any contract not combination, should be the law period or a fine
correccional in its minimum period or a fine or agreement or taking part in any of trade ranging from
ranging from 200 to 6,000 pesos, or both, conspiracy or combination in the ₱200.00 to
shall be imposed upon: form of a trust or otherwise, in 2. Any property possessed under any ₱6,000.00, or
restraint of trade or commerce or to contract or combination both
1. Any person who shall enter into any prevent by artificial means free
contract or agreement or shall take part in contemplated in this article, shall be
competition in the market
any conspiracy or combination in the form of forfeited to the Government
a trust or otherwise, in restraint of trade or prision mayor in
2. Monopoly to restrain free
commerce or to prevent by artificial means 3. The law intends to punish the its maximum
competition in the market by:
free competition in the market; mere conspiracy or combination at and medium
(a) monopolizing any
2. Any person who shall monopolize any which it is aimed periods – if the
merchandise or object of trade or
merchandise or object of trade or commerce, offense affects
commerce
or shall combine with any other person or 4. If the offense affects any food any food
(b) combining with any other
persons to monopolize and merchandise or substance, motor fuel or lubricants or substance, motor
person(s) to monopolize said
object in order to alter the price thereof by fuel or
merchandise or object in order to other article of prime necessity, it is
spreading false rumors or making use of any lubricants, or
alter the prices thereof by sufficient for the imposition of the
other article to restrain free competition in other articles of
spreading false rumors or making higher penalty that the initial steps prime necessity
the market; use of any other artifice to restrain have been taken toward carrying out
3. Any person who, being a manufacturer, free competition in the market the purposes of combination
producer, or processor of any merchandise or
object of commerce or an importer of any 3. Manufacturer, producer, or 5. When the offense is committed by
merchandise or object of commerce from any processor or importer combining, a corporation or association, the
foreign country, either as principal or agent, conspiring or agreeing with any
wholesaler or retailer, shall combine,
president and directors or managers
person to make transactions
conspire or agree in any manner with any are liable as principals thereof;
prejudicial to lawful commerce or
person likewise engaged in the manufacture, to increase the market price of
– but the president and directors
production, processing, assembling or merchandise or managers are only liable if they:
importation of such merchandise or object of (a) Person Liable – manufacturer, (a) knowingly permitted
commerce or with any other persons not so producer, processor, or importer of (b) failed to prevent the commission
similarly engaged for the purpose of making any merchandise or object of of such offense
transactions prejudicial to lawful commerce, commerce
or of increasing the market price in any part (b) Crime Committed by –
of the Philippines, of any such merchandise combining, conspiring, or agreeing [Article 186 has been repealed by
or object of commerce manufactured, with any person Rep. Act No. 10667 or the Philippine
produced, processed, assembled in or (c) Purpose – to make transactions Competition Act (July 2,2014)]
imported into the Philippines, or of any prejudicial to lawful commerce, or Note: Violations of Art. 186 prior to
article in the manufacture of which such to increase the market price of any effectivity of PCA may continue to
manufactured, produced, or imported merchandise or object of be prosecuted unless the same has
merchandise or object of commerce is used. commerce manufactured, been barred by prescription, etc.
If the offense mentioned in this article produced, processed, assembled or
affects any food substance, motor fuel or imported into the Philippines
lubricants, or other articles of prime
necessity, the penalty shall be that of prision
mayor in its maximum and medium periods
it being sufficient for the imposition thereof
that the initial steps have been taken toward
carrying out the purposes of the combination.
Any property possessed under any
contract or by any combination mentioned in
the preceding paragraphs, and being the
subject thereof, shall be forfeited to the
Government of the Philippines.

Whenever any of the offenses

described above is committed by a
corporation or association, the president and
each one of its agents or representatives in
the Philippines in case of a foreign
corporation or association, who shall have
knowingly permitted or failed to prevent the
commission of such offense, shall be held
liable as principals thereof.

Section Two. — Frauds in commerce and industry

Crime Elements Important Points to Remember Penalty

IMPORTATION AND 1. That the offender imports, sells, or 1. Articles of merchandise involved: gold, prisión
DISPOSITION OF disposes of any of those articles or silver, other precious metals, or their alloys. correccional or a
FALSELY MARKED merchandise fine ranging from
ARTICLES OR 2. Selling the misbranded articles is not ₱40,000.00 to
MERCHANDISE MADE 2. The stamps, brands, or marks of necessary, but there must be evidence showing ₱200,000.00, or
OF GOLD, SILVER, OR those articles of merchandise fail to that the articles were imported (e.g. possession both
OTHER PRECIOUS indicate the actual fineness or quality thereof after importing)
METALS OR THEIR of said metals or alloys
ALLOYS 3. Article 187 does not apply to manufacturer of
3. The offender knows that stamps, misbranded articles made of gold, silver, etc.
Art. 187. The penalty of brands, or marks fail to indicate the
prisión correccional or a actual fineness or quality of the metals 4. The manufacturer who alters the quality
fine ranging from forty or alloys or fineness of anything pertaining to his art
thousand pesos (₱40,000) to
two hundred thousand pesos
or business is liable for estafa.
(₱200,000), or both, shall be
imposed upon any person
who shall knowingly import
or sell or dispose of any
article or merchandise made
of gold, silver, or other
precious metals, or their
alloys, with stamps, brands,
or marks which fail to
indicate the actual fineness
or quality of said metals or
alloys.
Any stamp, brand
label, or mark shall be
deemed to fail to indicate the
actual fineness of the article
on which it is engraved,
printed, stamped, labeled or
attached, when the test of the
article shows that the quality
or fineness thereof is less by
more than one-half karat, if
made of gold, and less by
more than four one-
thousandth, if made of silver,
than what is shown by said
stamp, brand, label or mark.
But in case of watch cases
and flatware made of gold,
the actual fineness of such
gold shall not be less than
more than three one-
thousandth than the fineness
indicated by said stamp,
brand, label, or mark.
 Crime Elements Important Points to Remember Penalty

SUBSISTING AND ALTERING Acts Punishable: Trade Name – name or designation identifying prision
TRADE-MARK, TRADE-NAMES, 1. By substituting or distinguishing an enterprise correccional in its
OR SERVICE MARKS the trade name or minimum period or
trademark of some a fine ranging from
Trade Name Distinguished from Trademark
other manufacturer 50 to 2,000 pesos,
Art. 188. The penalty of prision 1. Trade name is used in trade to designate a or both
or dealer, or a
correccional in its minimum period or colorable imitation
particular business of certain individuals
a fine ranging from 50 to 2,000 pesos, thereof, for the trade considered as an entity; trademark is used to
or both, shall be imposed upon: name or trademark indicate the origin or ownership of the goods to
1. Any person who shall substitute the of the real which it is affixed
trade name or trade-mark of some manufacturer or
other manufacturer or dealer or a dealer upon any 2. Trade name, unlike trademarks, are not
colorable imitation thereof, for the article of commerce necessarily attached or affixed to the goods of
trademark of the real manufacturer or and selling the same the owner
dealer upon any article of commerce
2. By selling or by
and shall sell the same; offering for sale Note:
2. Any person who shall sell such such articles of 1. The trade name, etc. used by the offender
articles of commerce or offer the same commerce, knowing need not be identical with the infringed trade
for sale, knowing that the trade-name that the trade name name, etc of the offended party; a colorable
or trade- mark has been fraudulently or trademark has imitation is sufficient
used in such goods as described in the been fraudulently
preceding subdivision; used 2. There must not be differences which are
3. Any person who, in the sale or glaring and striking to the eye
3. By using or
advertising of his services, shall use or substituting the
substitute the service mark of some service mark or 3. Mark – any visible sign capable of
other person, or a colorable imitation some other person, distinguishing the foods (trademark) or
of such mark; or or a colorable service (service mark) of an enterprise and
4. Any person who, knowing the imitation of such shall include a stamped or marked container
purpose for which the trade-name, mark, in the sale or
trade-mark, or service mark of a advertising of his 4. The trademark’s function is to indicate the
person is to be used, prints, services origin or ownership of the goods to which it
lithographs, or in any way reproduces is fixed
4. By printing,
such trade-name, trade-mark, or lithographing, or
service mark, or a colorable imitation reproducing trade 5. The objects of trademark are to point out
thereof, for another person, to enable name, trademark, or distinctly the origin or ownership of the
that other person to fraudulently use service mark of one article to which it is affixed, to secure to
such trade-name, trade-mark, or person, or a him, who has been instrumental in brining
service mark on his own goods or in colorable imitation into market a superior article of
connection with the sale or advertising thereof, to enable merchandise, the fruit of his industry and
of his services. another person to skill, and to prevent fraud and imposition
fraudulently use the
A trade-name or trade-mark as 6. It is not necessary that the goods of the
same, knowing the
herein used is a word or words, name, fraudulent purpose prior user and the late user of the trademark
title, symbol, emblem, sign or device, for which it is to be are of the same categories
or any combination thereof used as an used
advertisement, sign, label, poster, or 7. The trade name or trademark must be
otherwise, for the purpose of enabling Registered
the public to distinguish the business
of the person who owns and uses said 8. Trademark must not be merely descriptive or
trade-name or trade-mark. Generic
A service mark as herein used is a
mark used in the sale or advertising of 9. The exclusive right to an originally valid
services to identify the services of one trademark or trade name is lost, if for some
person and distinguish them from the reason it loses its distinctiveness or has become
services of others and includes “publici juris”
without limitation the marks, names,
symbols, titles, designations, slogans,
character names, and distinctive
features of radio or other advertising.

Crime Elements Important Points to Remember Penalty

UNFAIR COMPETITION, Acts Punished: 1. Mere offer for sale completes the Penalty
FRAUDULENT 1. By selling his goods, giving them commission of the crime provided for
REGISTRATION OF the general appearance of the goods in the next
TRADE-MARK, TRADE- of another manufacturer or dealer 2. Evidence of actual fraudulent intent preceding
NAME OR SERVICE MARK, (Unfair Competition) is not necessary article
FRAUDULENT a. That the offender gives his
DESIGNATION OF ORIGIN, goods the general appearance of the 3. The basis for penalizing unfair
AND FALSE DESCRIPTION goods of another manufacturer or competition is that no one shall, by
dealer imitating or any unfair device, induce
Art. 189. The penalty provided b. That the general appearance is the public to believe that the goods he
in the next proceeding article shown in the (a) goods themselves, offers for sale are the goods of another,
shall be imposed upon: or in the (b) wrapping of their and thereby appropriate to himself the
1. Any person who, in unfair packages, or in the (c) device or value of the reputation which the other
competition and for the purposes words therein, or (d) any other has acquired for the products or
of deceiving or defrauding feature of their appearance merchandise manufactured or sold by
another of his legitimate trade or c. That the offender offers to him
the public in general, shall sell sell(s) those goods or gives other
his goods giving them the persons a chance or opportunity to 4. The true test of unfair competition is
general appearance of goods of do the same with a like purpose whether certain goods have clothed
another manufacturer or dealer, d. That there is actual intent to with an appearance which is likely to
either as to the goods deceive public or defraud a deceive
themselves, or in the wrapping competitor ordinary purchaser exercising ordinary
of the packages in which they care, and not whether a certain limited
are contained or the device or 2. By (a) affixing to his goods or class of purchaser with special
words thereon or in any other using in connection with his knowledge not possessed by the
features of their appearance services a false designation of ordinary purchaser could avoid mistake
which would be likely to induce origin, or any false description or by the exercise of this special
the public to believe that the representation, and (b) by selling knowledge
goods offered are those of a such goods and services
manufacturer or dealer other 5. Master is liable for acts of servant
than the actual manufacturer or 3. By procuring fraudulently from
dealer or shall give other persons the patent office the 6. Infringement of Trademark or
a chance or opportunity to do the registration of trade name, Tradename distinguished from Unfair
same with a like purpose. trademark, or service mark Competition
a. UC is broader and more inclusive
2. Any person who shall affix, Smuggling or Illegal Importation: b. In UC, the offended party has
apply, annex or use in - requisites: identified in the mind of the public the
connection with any goods or 1. that the merchandise must have goods he manufactures or deals in from
services or any container or been fraudulently or those of others; while in infringement,
containers for goods a false knowingly imported contrary to law the
designation of origin or any false offended party has identified a peculiar
description or representation and 2. that the defendant, if he is not the symbol/mark with his goods and
shall sell such goods or services. importer himself, must have thereby
received, concealed, bought, sold or has acquired a property right in such
3. Any person who by means of in any manner facilitated the symbol/mark
false or fraudulent representation transportation, concealment or sale c. In UC, the offender gives his
or declarations orally or in of the merchandise goods the general appearance of the
writing or by other fraudulent goods of
means shall procure from the 3. that the defendant must be shown another manufacturer / dealer and sells
patent office or from any other to have knowledge that the the same; while in infringement, the
office which may hereafter be merchandise had been illegally offender uses the trademark or
established by law for the imported containers is regulated tradename of another manufacturer or
purposes the registration of a dealer and sells his goods on which the
trade-name, trade-mark or trademark is affixed
service mark or of himself as the
owner of such trade-name, trade- 7. The use of duly stamped or marked
mark or service mark or an entry
respecting a trade-name, trade-
mark or service mark.