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INTELLECTUAL
PROPERTY-RELATED QUESTIONS
- Does the Philippines
protect IP?
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YES.
RA 8293 entitled Intellectual Property Code of the Philippines
codified: Philippine Laws on IP conformably with the WTO-TRIPS Agreement
created the : Intellectual Property Office (IPO)
repealed : old IP and IP-related laws:
RA 165 (Patents Law)
RA 166 (Trademarks Law)
PD 49 (Copyright/Related Rights Law)
PD 285 (Textbook reprinting Law)
Articles 188 and 189 of the Revised Penal Code (on unlawful competition/infringement)
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- Is the Philippines
a member of any IP or IP-related treaty?
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YES.
IP in general: |
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- WTO-TRIPS
(Agreement on Trade-Related Aspects of Intellectual Property Rights)
- WIPO (Convention
Establishing the World Intellectual Property Organization) <since
1980>
- Industrial
Property Rights (Patents, Trademarks, Industrial Designs, Utility
Models):
- Paris
Convention for the Protection of Industrial Property <since
1965>
- Budapest
Treaty on the International Recognition of the Deposit of
Microorganisms for Purposes of Patent Procedure <since
1981>
- Patent
Cooperation Treaty: <since 2001>
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Copyright
and Related Rights: |
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- TRIPS: Do the
TRIPS provisions apply in the Philippines?
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YES. RA
8293 codified all the laws on IP in accordance with TRIPS.
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- Which courts
have jurisdiction over IPR infringement cases?
Regional Trial Courts
numbering to about 27 courts have original jurisdiction to hear and
decide cases involving violations of intellectual property rights
regardless of the amount involved.
- Which persons
have standing to assert IPRs? How may they be represented? Are there
requirements for mandatory personal appearances before the court of
the right holder?
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Natural
and juridical persons who are owners or holders of intellectual
property rights, including their assigns and successors-in-interests
have standing to assert said rights. They may be represented either
by themselves or by counsel authorized to practice law in the Philippines.
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The
right holder must personally appear during the pre-trial conference,
but may be represented by counsel who must be authorized in writing,
either by a power of attorney in case of a natural person or a corporate
secretarys certificate in case of a juridical person, to compromise
or enter into stipulations and admissions.
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- What authority
do the judicial authorities have to order a party, at the request of
an opposing party, a party to a proceeding to produce evidence which
lies within its control?
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Judicial
authorities may order, at the request of an opposing party, the
issuance of subpoena ad testificandum requiring the other party
to appear and testify in court, and/or subpoena duces tecum requiring
the other party to produce and submit documentary evidence which
lies within his control. The court, however, may not so order where
the evidence is incriminator, confidential, privileged, immaterial
or irrelevant.
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- What means
exist to identify and protect confidential information brought forward
as evidence?
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Confidential
information introduced as evidence in the proceedings become part
of the records of the case and may be accessed by the public. Judicial
authorities, however, may prevent disinterested parties from prying
into court records if the purpose is merely to satisfy curiosity.
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- What are the
remedies that the judicial authorities can order and what criteria,
legislative or jurisprudential, regulate the use of such remedies?
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Judicial
authorities may order the following remedies in cases involving
violations of intellectual property rights:
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a) DAMAGES
In
patent infringement, the court may award damages not exceeding three
(3) times the amount of actual damages sustained. If damages cannot
be readily ascertained, the court may award damages equivalent to
a reasonable royalty.
In
trademark infringement, the court may award damages equivalent to
the reasonable profit, or the profit which defendant actually made
out of the infringement. If damages cannot be readily ascertained,
the court may award damages equivalent to a percentage of the gross
sales of the defendant. Damages may be doubled if there is actual
intent to mislead the public or defraud complainant.
In
copyright infringement, the court may award actual damages sustained
including the profits which the infringer could have made if not
for infringement, or such damages as may be just under the circumstances.
In
all the above-cited infringements, the court may also award attorneys
fees and other forms of damages such as moral, nominal, temperate,
liquidated and exemplary damages arising from the defendants
wrongful acts.
b) INJUNCTION
The
court may order an injunction restraining infringement of intellectual
property rights. Injunction may be granted if proven that the invasion
of the right is material, the right of the applicant is clear, and
there is an urgent necessity for the writ to prevent serious damage
to the applicant.
The
injunction may be refused if the court finds that the complaint
is insufficient. It may also be dissolved if the defendant files
a counter bond and presents evidence that he would sustain great
damage. Plaintiff may be compensated for damages he may suffer if
the injunction is dissolved.
c)
DESTRUCTION OF INFRINGING GOODS
The
court may order that the infringing goods and materials be disposed
of outside the channels of commerce to avoid causing harm to the
right holder, or be destroyed without compensation.
d)
OTHER REMEDIES
In
trademark infringement, the court may impound sales invoices and
other documents evidencing sales.
In
copyright infringement, the court shall have the power to order
the seizure and impounding of any article which may serve as evidence
in court proceedings.
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- In what circumstances,
if any, do judicial authorities have authority to order the infringer
to inform the right holder of the identity of third persons involved
in the production and distribution of the goods or services found to
be infringing and of their channels of distribution?
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Courts
have the inherent power to compel obedience to their orders and
processes, and to control conduct of persons connected with a case.
In furtherance of justice, they may ask clarificatory questions
or require the infringer to give information as to the identity
of contributory infringers who shall be jointly and severally liable
with the infringer.
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- How can a defendant
who is wrongfully enjoined be indemnified? To what extent are public
authorities and/or officials liable in such situation and what remedial
measures are applicable to them?
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A
defendant wrongfully enjoined or restrained may recover damages
from the applicant who will execute a bond to the effect that he
will pay the defendant all the damages that the latter may sustain
by reason of the injunction or temporary restraining order if the
court should finally decide that applicant is not entitled thereto.
Public
authorities and/or officials are not liable for acts done in good
faith in the performance of their duties. But they may be held liable
for willful or negligent acts done in a manner contrary to law which
may subject them to criminal and administrative proceedings such
as graft cases before the Ombudsman, and/or suspension or disbarment
in the case of lawyers. The party wrongfully enjoined may also move
for the inhibition of the judge who rendered the order.
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- What are the
pertinent provisions on the length and cost of the proceedings?
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Length
The
Regional Trial Courts have been directed to give priority to cases
involving violations of intellectual property rights and are required
to dispose of said cases within sixty (60) days. The parties
choice of proceedings, complexity or novelty of the issues, volume
of evidence, and other attendant factors may shorten or lengthen
the proceedings.
Cost
Filing
fees are based on the amount of claims, the minimum amount which
is 0.5% of the amount of the claims. Other costs of litigation including
lawyers fees may vary depending on the agreement between the
party and the counsel.
Data
There
is no available statistical data on the actual length and cost of
proceedings.
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- Which administrative
bodies have jurisdiction over IPR infringement cases?
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The
Intellectual Property of the Philippines (IP Philippines) exercises
original jurisdiction over administrative cases involving violation
of intellectual property rights where damage claimed is not less
than Two Hundred Thousand Pesos (Php200,000.00). Its decisions are
appealable to the Court of Appeals and the Supreme Court. The Department
of Trade and Industry (DTI) has jurisdiction over complaints regarding
violations of intellectual property rights irrespective of the total
amount of damages claimed, or if no damages are claimed. Decisions
of the Secretary of Trade and Industry are appealable to the Office
of the President. A complainant before the IP Philippines must state
that he has no other similar pending administrative action in any
other tribunal, agency or quasi-judicial body.
The
IP Philippines exercises original jurisdiction to resolve disputes
regarding the terms of a license of an authors right to public
performance. The decision of the IP Office is appealable to the
Secretary of Trade
and Industry.
The Videogram
Regulatory Board (VRB) has jurisdiction over violations of law involving
videograms.
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- Which persons
have standing to assert IPRs? How may they be represented? Are there
requirements for mandatory personal appearances before the court by
the right holder?
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Natural
and juridical persons who are owners or holders of intellectual
property rights, including their heirs and successors-in-interests
have standing to assert said rights. They may be represented either
by themselves or by counsel authorized to practice law in the Philippines.
The
personal appearance of the parties are required only during the
pre-trial conference, but their presence may be dispensed with upon
showing of a valid cause or if their counsel or representative is
fully authorized through a power of attorney or corporate authorization.
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- What authority
do the administrative authorities have to order, at the request of an
opposing party, a party to a proceeding to produce evidence which lies
within its control?
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Administrative
authorities may issue subpoena ad testificandum to compel attendance
of parties and witnesses. Administrative officers of the IP Philippines
and DTI have the authority to issue subpoena duces tecum for the
production of any books, papers, documents, correspondence and other
records which are material to the case. By leave of the hearing
officer, a party may take the deposition of any person under written
interrogatories.
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- What means
exist to identify and protect confidential information brought forward
as evidence?
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The
IP Code guarantees the confidentiality of records. The Director
of the Bureau of Legal Affairs and other employees are strictly
and absolutely forbidden to discuss the case or any phase thereof
with either counsel in the absence of the other or with any person
not having any interest or legal standing before the Bureau. However,
this rule must be understood in the light of the constitutional
provision recognizing citizens right to information. Thus,
the public has the right to access official records, documents,
and papers pertaining to official acts, transactions or decisions.
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- What are the
remedies that the administrative authorities can order and what criteria,
legislative or jurisprudential regulate the use of such remedies?
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Administrative
authorities may order the following remedies in cases involving
violation of
intellectual property rights:
a)
ATTACHMENT
The
IP Philippines may grant preliminary attachment if there is sufficient
cause for the adverse partys property to be attached as a
security for the satisfaction of the judgment.
b)
INJUNCTION
The
IP Philippines may grant a preliminary injunction to restrain an
action or require the performance of an action if there is an attempted
injustice or violation of the rights of the applicant. A final injunction
may be granted to have the acts complained of permanently enjoined.
c)
PRELIMINARY ORDER
The
Adjudication Officer of the DTI may issue a preliminary order, to
require a person to refrain from, or perform, a particular act.
d)
PREVENTIVE MEASURES
In
order to prevent the disposition or tampering of evidence, the Secretary
of DTI may order the seizure of goods or paraphernalia and the padlocking
of the building or warehouse where infringed goods are stored. He
may also order the prevention of the departure from the country
of the respondent and the vessel or aircraft used in the commission
of the offense.
e)
OTHER REMEDIES
The
Videogram Regulatory Board may impose a fine of not less than Six
Thousand Pesos (Php6,000.00) but not more than One Hundred Thousand
Pesos (Php100,000.00) and a non-monetary penalty consisting of closure,
revocation of license or permit and confiscation of videograms involved
in the violation.
The
Director of the Bureau of Legal Affairs of the IP Philippines and
the Secretary of the DTI may impose any of the following administrative
penalties for violations of intellectual property rights:
- Cease and
desist order
- Acceptance
of voluntary compliance or discontinuance
- Condemnation
or seizure of products subject of the offense
- Forfeiture
of paraphernalia, real or personal properties
- Administrative
fines
- Cancellation
of permits, licenses or registration granted
- Withholding
of any permit, license or registration being secured
- Damages
- Censure
- Other analogous
penalties and sanctions
The
Director of Legal Affairs shall have the power to hold and punish
for contempt all those who disregard orders or writs issued in the
course of the proceedings.
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- In what circumstances,
if any, do administrative authorities have authority to order the infringer
to inform the right holder of the identity of third persons involved
in the production and distribution of the goods or services found to
be infringing and of their channels of distribution?
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Hearing officers of administrative agencies may in the course of
the proceedings propound clarificatory questions to witnesses during
the perpetuation of their testimonies. As such, they are not prohibited
to inquire into the identity of persons involved in the production
and distribution of infringing goods.
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- How can a defendant
who is wrongfully enjoined be indemnified? To what extent are public
authorities and/or officials liable in such situation and what remedial
measures are applicable to them?
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Administrative
rules of the IP Philippines and DTI require an applicant for an
injunction to file a bond to answer for damages that a person enjoined
may sustain by reason of the injunction. Public officers are not
liable for acts done in good faith in the performance of their duties.
However, they shall be criminally liable under the anti-graft laws
for causing undue injury to parties through manifest partiality,
bad faith and gross inexcusable negligence. If the hearing officer
is an attorney, disbarment or suspension proceedings may be instituted
against him.
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- What are the
pertinent provisions on the length and cost of the proceedings?
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Length
The
actual length of the proceedings are dependent on the complexities
of the issues raised and the course of action that the litigants
are inclined to pursue.
INTELLECTUAL
PROPERTY OFFICE OF THE PHILIPPINES
A.
Inter Partes Proceedings
After
the summons is sent, the respondent is required to answer the petition
within fifteen (15) days. Upon joinder of the issues, a pre-trial
conference shall be set within two (2) months from receipt of the
answer or other pleadings. During the hearing of the case, the petitioner
and respondent shall submit sworn statements of the witnesses and
other documentary evidence. Thereafter, they may present rebuttal
and sur-rebuttal evidence. The parties shall be required to submit
their memoranda within one (1) month from receipt of the order of
admissibility of exhibits. Within one (1) month from the date the
case is submitted for decision, the hearing officer shall submit
his report, findings and draft decision to the Director for approval.
B. Administrative
Complaints
The
respondent is required to answer the complaint within ten (10) days
from receipt of the summons. Upon joinder of the issues, the notice
of the pre-trial shall be delivered within two (2) days from receipt
of the answer or other pleading. During the trial of the case, the
complainant and respondent are each given thirty (30) days to present
evidence, and another thirty (30) days for rebuttal and sur-rebuttal
evidence. The hearing and reception of evidence, in the case of
provisional remedies, shall be terminated in thirty (30) days. All
cases or any incident thereof shall be decided or resolved within
thirty (30) days from submission for decision or resolution by the
hearing officer.
DEPARTMENT OF
TRADE AND INDUSTRY
The
Secretary of the Department of Trade and Industry may provide for
compulsory arbitration, conciliation and mediation systems. If there
is a determination of a prima facie case, the Head of Office may
direct that the complaint pass through mediation or elevate the
complaint to the chief hearing officer. In mediation proceedings,
the mediation officer has fifteen (15) days within which to mediate
the case. If the case is set for formal hearing, the hearing officer
within five (5) days from receipt of the Answer, shall send a Notice
of Pre-Formal Hearing. During formal hearing, the complainant and
respondent shall present statements of witnesses and other documentary
evidence. Thereafter, they may present rebuttal and sur-rebuttal
evidence. At the parties request and at the hearing officers
discretion, the parties may file their Memoranda within ten (10)
days. The case is decided thirty (30) days from the time the formal
hearing is terminated.
Cost
The
cost of proceedings in the IP Philippines is based on a fee structure
issued by the IP Philippines on June 8, 2000. The filing fee for
a complaint is Eight Thousand Pesos (Php8,000.00) with an additional
fee of 1/10 of 1% of the damages claimed in excess of Five Hundred
Thousand Pesos (Php500,000.00). Other costs of litigation including
lawyers fees may vary depending on the agreement between a
party and counsel.
Data
There
are no available statistical data on the actual length of the proceedings.
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- What types of
provisional measures do judicial authorities may order, and what is
the legal basis for such authority?
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The
provisional measures that judicial authorities may grant to a complaining
party are as follows:
1. PRELIMINARY
ATTACHMENT
At
the commencement of the action or at anytime before entry of judgment,
a plaintiff or any proper party may have the property of the adverse
party attached as security for the satisfaction of any judgment
that may be recovered.
Attachment
is considered an advance execution of judgment to prevent ineffective
victory.
2. PRELIMINARY
INJUNCTION
This
is an order granted at any stage of an action or proceeding prior
to the judgment or final order, requiring a party or a court, agency
or a person to refrain from a particular act or acts. It may also
require the performance of a particular act or acts, in which case
it shall be known as preliminary mandatory injunction.
3. IMPOUNDING
AND DESTRUCTION
On
the application of the complainant, the court may impound during
the pendency of the action, sales invoices and other documents evidencing
sales.
Infringing goods
are likewise subject to destruction without any compensation while
the case is pending.
4. SEIZURE AND
IMPOUNDING
The
court is empowered to order the seizure and impounding of any article
which may serve as evidence in the court proceeding.
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- In what circumstances
may such measures be ordered inaudita altera parte?
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SEIZURE AND
IMPOUNDING
Whenever
a party wants to prevent grave or irreparable damage or destruction
of infringing evidence, the court is empowered to order the seizure
and impounding of any article which may serve as evidence in the
court proceedings.
PRELIMINARY
ATTACHMENT
The
only requisites for the issuance of the writ of preliminary attachment
are the affidavit and bond of the applicant. No notice to the adverse
party or hearing of the application is required as the time which
the hearing would entail could be enough to enable the defendant
to abscond or dispose of his property before the writ of preliminary
attachment issues.
PRELIMINARY
INJUNCTION
A
temporary restraining order can be issued ex parte if the matter
is of such extreme urgency that grave injustice and irreparable
injury will arise unless it is issued immediately.
The
requisites which can be issued before an injunction are: (1) existence
of a right to be protected; and (2) the act against which injunction
is to be directed is a violation of such right.
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- What are the
main procedures for the initiation, ordering and maintenance in force
of provisional measures, in particular, relevant time limits and safeguards
to protect the legitimate interests of the defendant?
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PRELIMINARY
ATTACHMENT
Any
party, not only the plaintiff, can avail himself of preliminary
attachment by filing a verified petition with the proper court.
A defendant on his counterclaim, a co-party on his cross claim,
and a third party plaintiff on his third party claim may move for
the issuance of the writ.
Attachment
basically involves three stages: first, the court issues the order
granting the application; second, the writ issues pursuant to the
order granting the same; and third, the writ is implemented. For
the first two stages, it is not necessary that jurisdiction over
the person of the defendant should first be obtained. However, once
the implementation commences, the court must have acquired jurisdiction
over the defendant, otherwise it has no power and authority to act
in any manner against or bind the defendant.
PRELIMINARY
INJUNCTION
Any
aggrieved party may apply for preliminary injunction by filing a
verified complaint with the proper court showing the grounds relied
upon and filing of the required bond.
TEMPORARY
RESTRAINING ORDER (TRO)
The
court may issue ex-parte a temporary restraining order to be effective
for a period of seventy-two (72) hours from notice to the party
or person sought to be enjoined on matters of extreme urgency that
may result in a grave injustice and irreparable damage to applicant.
Within that period the court must conduct a hearing to determine
the propriety of the injunction. Ordinarily, a preliminary injunction
has a lifetime of twenty (20) days, which cannot be issued in the
absence of a hearing. The twenty-day (20) period is inclusive of
the seventy two hours (72) temporary restraining order. However,
if issued by the Court of Appeals, the temporary restraining order
shall be effective for sixty (60) days from issuance of notice to
the party or person sought to be enjoined. A restraining order issued
by the Supreme Court shall be effective until further orders.
PROCEDURES COMMON
TO THE ABOVE REMEDIES
Both
preliminary attachment and preliminary injunction are initiated
by filing a verified petition with the proper court and posting
of bond. The petitioner must show facts entitling him to the relief
demanded.
In
both cases, the bond posted by the applicant serves as the security
for the adverse party and answers for the damages and costs, which
may be adjudged to the adverse party arising from and by reason
of the attachment.
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- What are the
pertinent provisions on the length and cost of the proceedings?
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Length
All
cases or matters filed must be decided or resolved within twenty
four (24) months from date of submission for the Supreme Court,
and unless reduced by the Supreme Court, twelve (12) months for
all lower collegiate courts, and three (3) months for all other
lower courts.
The
above periods for decision are mandatory in nature and apply to
all cases including preliminary attachment and preliminary injunction
and pursuant to the constitutional right that all persons shall
have the right to speedy disposition of their cases before all judicial,
quasi-judicial or administrative bodies.
However,
during the course of the trial, different factors may affect the
duration of the proceedings including but not limited to the complexity
of the issues and other circumstances affecting the case.
Cost
The
cost of the proceedings which includes the filing fees, research
fees and other miscellaneous fees varies depending on the damages
claimed.
As
to Attorneys fees, the same is left to the mutual agreement
of the client and lawyer, and is usually based on the prevailing
standard of the legal profession.
Data
Data
on actual duration of proceedings and their cost are not readily
available. However, prompt disposition of cases is assured considering
the mandatory provision of the Constitution.
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- What are the
types of provisional measures do administrative authorities may order,
as well as the legal basis for such authority?
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The
IP Philippines may issue preliminary orders for violations of intellectual
property rights.
Upon
verified application of the complainant, the Bureau of Legal Affairs
(BLA) may issue preliminary injunction to require a person to refrain
from a particular act or to perform a particular act, if the BLA
is satisfied that the commission or continuance of the act complained
of would probably work injustice to the complainant.
Furthermore,
upon showing of its sufficiency, an order of attachment may be issued
to have the property of the adverse party attached as security for
the satisfaction of any judgment that may be recovered.
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- In what circumstances
may such measures be ordered inaudita altera parte?
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Preliminary
orders may be granted with or without prior notice and hearing on
the application for its issuance. In instances where these orders
may be granted without prior hearing, it shall appear from facts
shown by affidavit of the applicant that sufficient cause warranting
the urgent issuance of these orders exists and that there is no
other sufficient security for the claim sought to be enforced by
the action.
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- What are the
main procedures for the initiation, ordering and maintenance in force
of provisional measures, in particular, relevant time limits and safeguards
to protect the legitimate interests of the defendant?
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In administrative actions, the procedures are the following:
- The application
for provisional remedies may be filed at any time after the commencement
of the administrative action or at any time before entry of judgment;
- Upon motion
with notice and hearing or may be issued ex parte; and
- The ground
is established for the issuance thereof.
The
party applying for the issuance of these orders must give a bond
to answer for all costs and damages resulting from the grant of
these provisional remedies, if the BLA shall finally adjudge that
the applicant is not entitled thereto.
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- What are the
pertinent provisions on the length and cost of the proceedings?
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Length
Successive
and continuous daily hearing for the reception of evidence in the
granting of provisional remedies is required. The hearings or reception
of evidence thereof shall be terminated within thirty (30) days
from submission of the last motion.
In
the proceedings for the granting of temporary restraining order
by the IP Philippines, a summary hearing is required within twenty-four
(24) hours after the Sheriffs return of service and/or receipt
of records by the Bureau of Legal Affairs (BLA).
Costs
The
movant or applicant is required to post a bond. The adverse party
on the other hand may post a counter bond in an amount equal to
the bond fixed by the BLA.
In
applying for provisional remedies, a fee of Two Thousand Pesos (Php2,000.00)
shall be collected by the IP Philippines in the filing of motions
for attachment or injunction.
Data
Data
on actual duration of proceedings and their cost are not readily
available. However, prompt disposition of cases is assured considering
the mandatory provision of the Constitution.
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- What are the
special requirements related to border measures?
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Customs
authorities may suspend the release of goods which are imported
in violation of the law. Suspension of release also applies to goods
which involve infringement of intellectual property rights other
than counterfeit trademark or pirated copyright goods as defined
in the TRIPS Agreement, (footnote to Article 51) such as goods infringing
patent rights, and goods bearing false designation of origin, false
or misleading description, or false or misleading representation.
Imports excluded from suspension of release are copyright works
not exceeding one (1) copy for an individual, or three (3) copies
for persons or family arriving from foreign countries. Goods put
on the market in another country by or with the consent of the rights
holder and goods destined for exports are not included in the list
of goods that may be seized.
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- What are the
main elements of the procedures relating to the suspension of the release
of goods by customs authorities, in particular, the competent authorities
(Article 51), the requirements for application (Article 52) and various
requirements related to the duration of suspension (Article 55). How
have Articles 53 (security or equivalent assurance), 56 (indemnification
of the importer and of owner of the goods) and 57 (right of inspection
and information) been implemented?
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Article
51: Suspension of Release by Customs Authorities
A patent holder, trademark or copyright owner, his assign, or his
duly authorized agent or representative, desiring to prevent or
prohibit the entry or importation of any cargo or shipment that
may infringe upon his property rights shall file a written request
to the Commissioner of Customs.
Article
52: Application
Any right holder initiating the above measure must file a written
request to the Commissioner of Customs attaching thereto duly authenticated
copies of patent, trademark or copyright registration and facsimiles
of his name, name of the locality in which his goods are manufactured,
or of his registered mark or trademark. He shall also furnish the
Commissioner with the following information:
- Name and
address of the patent holder, trademark, or copyright owner;
- Name of the
locality in which his goods or products are manufactured;
- Name and
address of the agent or representative;
- Sufficiently
detailed description of the goods, products or services of the
patent holder, trademark or copyright owners to make them readily
recognizable by the Customs authorities
Upon
receipt of the written request, the Commissioner of Customs shall
direct the Legal Service to record the patent, trademark or copyright
certificate and the foregoing information in the books kept for
such purpose.
After
proper evaluation and due recording in the registry, the Commissioner
of Customs shall then issue a Memorandum Circular addressed to all
Collectors of Customs, Customs Examiners/Appraisers and Hearing
Officers of the Law Division, informing them of the request, directing
them to strictly monitor and enforce the prohibition and attaching
to such circular a copy of the request, the patent, trademark or
copyright certificates of registration, the facsimiles and all the
pertinent information thereto.
Upon
receipt of the Memorandum Circular, all Collectors of Customs, Customs
Examiners/Appraisers and Hearing officers, on their part, shall
maintain and keep their own file of all such requests that will
provide basis for monitoring and prohibiting the entry or importation
of any incoming cargo or shipment that may infringe upon the property
rights of the patent, trademark or copyright owners, and for notifying
such owners or their authorized agent or representative to witness
the examination of the said cargo or shipment.
In
the performance of their duties, the Customs Examiners/Appraisers
shall conduct an actual examination of the suspected cargo or shipment
and shall immediately submit a recommendation to the Collector of
Customs for the issuance of Warrant of Seizure and Detention against
such cargo or shipment if there is prima facie case of infringement.
During the seizure proceeding of such goods, the patent holder,
trademark or copyright owners or their duly authorized agents shall
be notified so that they may participate as intervenor and present
evidence to prove infringement on its patent, trademark or copyright.
Article
53: Security or Equivalent Assurance
The
applicable implementing rules and regulations do not require the
rights owner to provide a security or equivalent assurance when
applying for suspension of release. Abuse of this measure is prevented
by the strict requirements in the availment of said remedy.
On the other hand, the owner or importer as a general rule may secure
the release of seized goods upon filing of a cash bond, unless there
is a prima facie evidence of fraud in the importation. However,
articles the importation of which is prohibited by law shall not
be released under any circumstances whatsoever.
Article
55: Duration of Suspension
The
decision of the Collector of Customs to suspend the release of goods
is considered valid until termination of the proceedings. His decision
is considered affirmed if no action has been taken thereon by the
Commissioner of Customs within thirty (30) days from the suspension
order. The decision of the Commissioner is appealable to the Secretary
of Finance, whose inaction within thirty (30) days shall render
said decision final and executory.
In
any seizure proceeding, the release of imported articles shall not
be allowed unless the decision of the Collector has been affirmed
in writing by the Commissioner of Customs.
Article
56 : Indemnification of the Importer and of the Owner of the Goods
The
importer or the owner of the goods may file an application for damages
on account of improper, irregular or excessive attachment. The indemnification
for damages shall comprehend not only the value of the loss suffered,
but also that of the profits which the importer or the owner of
the goods failed to obtain. Damages may also be covered for injury
to the business standing or commercial credit. Moreover, he can
invoke his right to speedy disposition of his case under the Constitution
of the Republic of the Philippines.
Article
57 : Right of Inspection and Information
The intellectual property right holder or his agent or representative
shall be notified to witness the examination of the cargo or shipment.
He may participate as intervenor and may present evidence to prove
infringement.
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- What are the
pertinent provisions on the length and cost of the proceedings? How
long is the validity of decisions by the competent authorities for the
suspension of the release of goods into free circulation?
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Actual duration of proceedings and the cost vary
depending on the peculiarities of each case and the remedies taken
by the parties. Meanwhile, the decision of the Collector of Customs
to suspend the release of goods is considered valid until termination
of the proceedings. The decision of the Customs Collector is considered
affirmed if no action has been taken thereon by the Commissioner
of Customs within thirty (30) days from the suspension order of
the Collector. The Commissioners decision is appealable to
the Secretary of Finance whose decision shall be deemed final and
executory if not acted within thirty (30) days.
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- Are competent
authorities required to act upon their own initiative and, if so, in
what circumstances? Are there any special provisions applicable to ex
officio action?
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The
Bureau of Customs, on the basis of an alert list or upon written
request by the intellectual property rights holder, shall place
under alert orders shipment known or suspected to be infringing
intellectual property rights.
However,
the Bureau of Customs may still stop the entry of the infringing
goods even if there is no alert list or requests because counterfeit
shipment falls within the term prohibited importation.
In
the case of pirated videograms that passed border controls into
commercial circulation, the state through the Videogram Regulatory
Board has the power to cancel the permit of persons engaged in videogram
business when there is violation of the law. Under its regulatory
and supervisory powers, it has the authority to inspect business
premises on its own initiative.
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- What are the
remedies that the authorities can order and what criteria regulate the
use of such remedies?
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In
the performance of their duties, the Customs Examiners/Appraisers
shall conduct an actual examination of the suspected cargo or shipment
and shall immediately submit a recommendation to the Collector of
Customs for the issuance of Warrant of Seizure and Detention against
such cargo or shipment if there is prima facie case of infringement.
The Bureau of Customs has the power to conduct random checks on
all imports to determine whether the goods match the description
in the shipping documentation and are not otherwise infringing.
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- Which courts
have jurisdiction over criminal acts of infringement of IPRs?
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Regional Trial Courts have original jurisdiction to hear and decide
cases involving violations of intellectual property rights regardless
of the amount involved. Twenty-seven of these courts are specially
designated to hear such cases.
The decisions of the Regional Trial Court may be brought on appeal
or on certiorari to the Court of Appeals, and to the Supreme Court.
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- In respect of
which infringement of which intellectual property rights are criminal
procedures and penalties available?
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Criminal
actions and penalties are available in the following violation of
intellectual property rights:
- Infringement
of Patent, Utility Models and Industrial Designs
- Infringement
of Copyright and Related Rights
- Infringement
of Trademarks, Service Marks and Geographical Indications
- Unfair competition
- False Designations
of Origin / False Description of Representation
- Reproduction
of cinematographic art
- Piracy
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- Which public
authorities are responsible for initiating criminal proceedings? Are
they required to do this on their initiative and/or in response to complaints?
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Any
peace officer or other public officer charged with the enforcement
of the law violated may file a criminal complaint in response to
complaints or request for investigation.
Thus,
law enforcement agencies such as the Philippine National Police
(PNP), the National Bureau of Investigation (NBI), Department of
Justice (DOJ) and the Videogram Regulatory Board may institute criminal
proceedings or may file criminal complaint which shall be prosecuted
under the direction and control of the prosecutor.
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- Do private persons
have standing to initiate criminal proceedings and, if so, who?
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Rights
holder, heirs or assigns, as the offended parties, may file or institute
action for
infringement.
The
offended party is authorized to prosecute a criminal action subject
to the direction and control of
the public prosecutor.
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- What are the
pertinent provisions on the length and cost of the proceedings?
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Length
All
cases or matters filed with the courts must be decided or resolved
within twenty-four (24) months from date of submission for the Supreme
Court, twelve (12) months for all lower collegiate courts, and three
(3) months for all other lower courts. Furthermore, the Philippine
Constitution under the Bill of Rights affirms the right of the people
to a just and speedy disposition of their cases.
The
Supreme Court has ordered the Regional Trial Courts to give priority
to violations of intellectual property rights cases in their trial
calendars. The proceeding shall undergo mandatory continuous trial
and shall be terminated within sixty (60) days from commencement
of trial. Judgment thereon shall be rendered within thirty (30)
days from submission for decision unless a shorter period is provided
by law or otherwise directed by the court.
Cost
There
is no filing fee in the institution of criminal actions. However,
in cases where the amount of damages, other than actual, is alleged
in the complaint or information, the corresponding filing fees shall
be paid by the offended party upon filing thereof in court for trial.
A
party may maintain litigation through their private lawyers the
compensation of which would depend on the agreements reached to.
The private prosecutor, however, shall be under the control and
supervision of the public prosecutor.
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