1

INTELLECTUAL PROPERTY LAW

ATTY. ANTHONY B. PERALTA

Class: Attendance is mandatory and I expect you to be prepared to contribute to every
class discussion. Absence from 25% of classes or more will bar a student from
taking the final exam. Expect to be called at random.

Evaluation: 40% of the grade is based on a 2-hour final exam. 30% of the grade is based on
participation in class and the remaining 30% is based on quizzes/short writing
assignments.

Course Code : INTPROP
Type of Course : Elective Course
Credit : 2 units
Total Hours : 28 hours
Term/Time/Room : Third Trimester 2012-2013

I. Course Description

The Philippine government has long adhered to the protection of intellectual property rights (IPR).
Consistent with the countrys commitment to honor international treaties, covenants and agreements, the
Philippines has continued to promulgate laws, regulations and administrative procedures on IPR related
matters aimed at ensuring respect for IPR. With the promulgation of the Intellectual Property Code
(Republic Act No. 8293), the Philippines complied with its international undertakings and provided better
protection for IPR.

This is a survey course covering the main areas of intellectual property law - patents, copyrights,
trademarks, and trade secrets. It introduces each subject and explores commonalities and differences
among different systems of intellectual property protection. It also gives an understanding of the
philosophy and application of IP Law.

II. Course objectives

The course seeks to impart to the student skills, knowledge, attitudes and values in IP Law. These
include:

1. Skills in the application of IP theory in order to be a competent lawyer, advocate, strategist and
administrator.
2. IP knowledge to appreciate conceptual and practical applications, government policy and
business transactions.
3. Attitudes to apply IP as a key to economic development in the Philippines.
4. Values on how to apply IP skills and knowledge positively to Philippine development.

III. Expected Outcome

At the end of the course, the student should:
1. Appreciate IP as an important tool for trade, economic and cultural development.
2. Appreciate the context in which IP, innovation and technology transfer operate.
3. Import appropriate attitudes and values as well as critical, creative, analytical and practical skills in
IP, and
4. Acquire the ability to handle matters regarding IP, innovation and technology transfer.

Class 1 Source and Nature of Intellectual Property Rights

INTRODUCTION

1. Information as a Commodity

2
What are the philosophical foundations for the protection of IP and how do they compare
with those for tangible property? Of what value is the public domain and what
information belongs there? What role should property and contract law play in
supporting the production and distribution of information in the marketplace?

PHILOSOPHICAL PERSPECTIVES

The Philosophy of Intellectual Property
John Hughes, 77 Georgetown Law Journal 287 (1988)

Natural Rights Perspective
John Locke, Two Treatises on Government
Third Edition, 1698

Personhood Perspective
Margaret Jane Radin, Property and Personhood
34 Stanford Law Review 957 (1982)


CONSTITUTION

Section 6 of Article
Section 14 of Article XII
Sections 10-18 of Article XIV

INTERNATIONAL CONVENTIONS

A. Berne Convention for the Protection of Literary and Artistic Works as revised in
Brussels (Brussel Act)

B. Paris Convention for the protection of Industrial Property Rights (Paris
Convention).

C. International Convention for the Protection of performers, Producers of
Phonograms and Broadcasting organizations (Rome Convention)

D. Convention Establishing the World Intellectual Property Organization

E. Agreement on Trade Related Aspects of Intellectual Property, Including trade in
Counterfeit Goods of the General Agreement on Tariffs and Trade. Articles 1-14,
40-73.
Taada v. Angara, 272 SCRA 18 (1997)

F. Patent Cooperation Treaty

Differences between copyright, trademarks and patent
Kho v. Court of Appeals, 379 SCRA 410 (2002)

Class 2 Quiz No. 1; Subject Matter; Authorship; Useful Articles

2. COPYRIGHT AND RELATED RIGHTS

2.1 Subject Matter
Section 241, Intellectual property Code (IPC)
Section 239.3, IPC
Section 236, IPC

2.2 Definition of Copyright
Section 177, IPC
3
Rule 2, Copyright Safeguards and Regulations
Rules 11-12, Copyright Safeguards and Regulations

2.3 Standard for Copyright Protection
Section 172.1, IPC
Section 172.2, IPC
Ching Kian Chuan v. CA, 363 SCRA 142 (2001)
Sambar v. Levi Strauss, 378 SCRA 364 (2002)

2.4 When does Copyright vest?
Santos v. McCullough Printing Co., 12 SCRA 321 (1964)
Filipino Society of Composers v. Benjamin Tan, 148 SCRA 461 (1987)
Sec. 2, PD 49
Article 5(2), Berne convention for the Protection of Literacy and Artistic Works
Section 172 and 172.2, IPC
Rule 7, Sections 2-4, Copyright Safeguards and Regulations

2.5 Scope of Copyright
Article 2, Berne convention for the Protection of Literacy and Artistic and Artistic Works
Sections 172, 172.2, 173.2, 174, IPC
Section 175, IPC
Section 176, IPC
Joaquin v. Drilon, 302 SCRA 225 (1999)
United Features Syndicate v. Munsingwear, 179 SCRA 260 (1989)
Feist Publications, Inc. v. Rural Tel. Service Co., 499 U.S. 340

2.6 Who owns Copyright?
Sec. 178 9and its subparagraphs), Sec. 179, Sec. 174, IPC
Article 722 and 723, Civil Code
Article 520 of the Civil Code

2.7 Duration of Copyright
Articles 7 and 7bis, Berne Convention for the Protection of Literary and Artistic Works
Sec. 213 (and its subparagraphs), Sec. 214, IPC

Class 3 Right to Make Copies; Infringement

2.8 Right to Make Copies
Sections 176 (and its subparagraphs), 171.11, 184, 185, 186, 187, 188, IPC
Sec 189, IPC
Sec. 190, IPC
Rule 14, Copyright Safeguards and Regulations
Filipino Society of Composers v. Benjamin Tan, 148 SCRA 461 (1987)
Philippine Education Co. v. Sotto, 52 Phil. 580
Ann Bartow, Educational Fair Use in Copyright: Reclaiming the Right to Photocopy
Freely, 60 University of Pittsburg Law Review, 149 (1998)
In The Matter of the Charges of Plagiarism, Etc., Against Associate Justice Mariano
C. Del Castillo, A.M. No. 10-7-17-SC. October 12, 2010.
In The Matter of The Charges of Plagiarism, Etc. Against Associate Justice Mariano
C. Del Castillo, A.M. No. 10-7-17 SC, February 8, 2011.

2.9 Transfer of Copyright
Sections 180 (and its subparagraphs), 181, 182, 183, IPC
Sections 4.2 in relation to Sections 87 and 88, IPC
Section 92, IPC
Section 237, IPC

2.10 Deposit of copyrightable materials
Sections 191-192, IPC
4
Sections 227-229, IPC
Rule 5, Copyright Safeguards and Regulations

2.11 Infringement
Definition
Remedies
Sections 221-224, IPC
Sec. 3, IPC
Sections 10.2, IPC
Sections 216-220, IPC
Sections 225-226, IPC
Sec. 231, IPC
Rule on Search and Seizure in Civil Actions for Infringement of Intellectual
Property Rights (A.M. No. 02-1-06-SC)
20
th
Century Fox v. CA, 164 SCRA 655 (1988)
Columbia Pictures, Inc. v. Court of Appeals, 237 SCRA 144 (1996)
People v. Ramos, 83 SCRA 1 (1978)
Serrano Laktaw v. Paglinawan, 44 Phil. 855
Habana v. Robles, 310 SCRA 511 (1999)
Joaquin v. Drilon, 302 SCRA 225 (1999)
Pearl & Dean v. Shoemart, 409 SCRA 231 (2003)

Class 4 Moral rights; Follow Up Rights; Neighboring Rights

2.12 Moral Rights
Article 6bis, Berne Convention for the protection of Literary and Artistic Works
Sections 193-199, IPC

2.13 Right to Proceeds in Subsequent Transfers (Droit De Suite or Follow Up Rights)
Sections 200-201, IPC

2.14 Neighboring Rights
Sec. 202, IPC
Sec. 212, IPC
a. Rights of Performers
Sections 203-207, IPC
Sec. 215, IPC

b. Rights of Procedures of Sound Recording
Sections 208-210, IPC
Sec. 215, IPC

c. Rights of Broadcasting Organizations
Sections 211, IPC
Sec. 215.2, IPC
ABS-CBN Broadcasting vs. Philippine Multi-Media System, G.R. Nos.
175769-70, January 19, 2009.

Class 5 Quiz No. 2; Registrability of Trademarks; Procedure

3. LAW ON TRADEMARKS, TRADENAMES AND SERVICE MARKS

3.1.1 Definition of Trademarks
Section 121.1, IPC
Distelleria Washington v. CA, 263 SCRA 303

3.1.2 Functions of Trademarks
Ang v. Teodoro, 74 Phil 50
Etepha v. Director of Patents, 16 SCRA 495
5
Mirpuri v. Court of Appeals, 318 SCRA 516 (1999)

3.1.3 How are Marks Acquired?
Section 122, IPC
Contrast this with Sec. 2-A of Republic Act No. 166 and cases decided under RA 166:
Unno Commercial Enterprises v. General Milling Corp., 120 SCRA 904
Kabushi Kaisha Isetan v. IAC, 203 SCRA 583
Philip Morris v. CA, 224 SCRA 576
Philip Morris v. Fortune Tobacco, GR No. 158589, 27 June 2006
Shangrila v. DCCI, GR No. 159938, 31 March 2006
Shangrila v DCCI, Gr No. 159938, 22 January 2007

3.1.4 Standard for Registrability

3.1.5 What Marks May Be Registered?
Sec 123 (and its sub-paragraph), IPC
Etepha v. Director of Patents, 16 SCRA 495
Baxter v. Zuasua, 5 Phil 160
Compania Gral de Tabacco v. Alhambra Cigar, 33 Phil 485
Ang v. Teodoro, 74 Phil 50
Arce Sons v. Selecta Biscuits, 1 SCRA 253
Kabushi Kaisha Isetan v. IAC, 203 SCRA 583
Asia Brewery v. CA, 224 SCRA 437 (1993)
Emerald Garment Manufacturing v. CA, 251 SCRA 600

3.1.6 Application for Registration
Application
Sec. 123, IPC
Sections 124 (and its sub-paragraphs), 125, 126, 128, 130 (and its sub-
paragraphs), IPC
Sec. 124.2, IPC
Sec. 131 (and its sub-paragraphs), IPC
(Claim of Priority Date)
Sec. 239.2, IPC

Assignment of Application Number and Filing Date
Sec. 127, IPC
Sec. 132.2, IPC

Examination
Sec. 133 (and its sub-paragraphs), IPC
Sec. 126, IPC
Sec. 129, IPC

Publication
Sec. 133.2, IPC

Opposition
Sections 134 and 135, IPC
Bata Industries v. CA, 114 SCRA 318
Mirpuri v. Court of Appeals, 318 SCRA 516 (1999)

Issuance and Publication of Certificate
Sections 136 and 137, IPC
Sec. 138, IPC
Sec. 139, IPC
Sec. 144 (and its sub-paragraphs), IPC
Sec. 4.2, IPC

6
Duration of Certificate
Sec. 145, IPC

Voluntary Cancellation of Certificate
Sec. 140, IPC

Correction of Mistakes
Sections 142 and 143, IPC

Renewal
Sec. 146 (and Its sub-paragraphs), IPC

Class 6 Rights Conferred; Remedies: Administrative Action; IPV Violations

3.1.7 Rights Conferred
Sec. 147 (and Its sub-paragraphs), IPC as amended by RA No. 9502 (Universally
Accessible Cheaper and Quality Medicines Act of 2008)
Sec 148, IPC
Section 4.2 in relation to Sections 87 and 88, 92, IPC
Sec. 149 (and its sub-paragraphs), IPC
Sec. 150 (and its sub-paragraphs), IPC
Sec. 231, IPC

Is there infringement even if the goods are non-competing?
And Tibay v. Teodoro, 84 Phil 50
Chua Che v. Philippine Patent Office, 13 SCRA 67 (1965).
Sta. Ana v. Maliwat, 24 SCRA 108
Philippine Refining Company v. Ng Sam, 115 SCRA 472
Esso Standard Eastern, Inc. v. CA, 116 SCRA 387
Faberge v. IAC, 215 SCRA 316
Canon Kabushiki v. CA, 116 336 SCRA 266 (2000)
Pearl & Dean v. Shoemart, 409 SCRA 231 (2003)
246 Corporation v. Daway, 416 SCRA 315 (2003)
Societe Des Produits Nestle v. CA, 356 SCRA 207 (2001)
Levi Strauss v. Clinton Apparelle, GR No. 138900, 20 September 2005

Section 20, RA 166 as compared to Sec. 138, IPC
Issue of Parallel Importation:
Yu v. CA, 217 SCRA 328

Remedies
Sec. 3, IPC
Sec. 160, IPC
Sec. 231, IPC
Leviton Industries v. Salvador, 114 SCRA 420
Puma v. IAC, 158 SCRA 233
La Chemise Lacoste v. Fernandez, 129 SCRA 373

Administrative Action
a) Cancellation of Proceedings
Sec. 151 (and its sub-paragraphs), IPC
Sec. 152 (and its sub-paragraphs), IPC
Sections 153 and 154, IPC
Sec. 230, IPC
Sec. 232.2, IPC
Romero v. Maiden Form, 10 SCRA 556
Philippine Nut Industry v. Standard Brands Inc., 65 SCRA 575
Anchor Trading co. v. Director of Patents, 99 Phil. 1040
Clorox Company v. Director of Patents, 20 SCRA 965 (1967)
7
Wolverine Worldwide, Inc. v. CA, 169 SCRA 627 (1989)
Shangri-La v. CA, 359 SCRA 273 (1999)
Superior Commercial Enterprises vs. Kennan Enterprises Ltd., GR No.
169974, April 20, 2010

b) Intellectual Property Rights Violations
Sec. 10(2) (and its sub-paragraphs), IPC
Sec. 232, IPC
Sec. 232.2, IPC

Prohibition of Importation
Sec. 166, IPC

Class 7 Civil Action; Criminal Action; Tradenames; Collective Marks

Civil Action
a) Infringement
Secs. 155-164, IPC
Sec. 232, IPC
Rules on Search and Seizure in civil Actions for Infringement of Intellectual
Property Rights (A.M. No. 02-1-06-SC)
Etepha A.G. v. Director of Patents, 16 SCRA 495 (1966)
Esso Standard Eastern, Inc. v. CA, 116 SCRA 338
Fruit of the Loom v. CA, 133 SCRA 405 (1984)
Del Monte Corp. v. CA, 181 SCRA 410
Asia Brewery v. CA, 224 SCRA 437
Conrad v. CA, 246 SCRA 691
Emerald Garment Manufacturing v. CA, 251 SCRA 600
Amigo v. Cluett Peabody, 354 SCRA 434 (2001)
Societe Des Produits Nestle v. CA, 356 SCRA 207 (2001)
Mighty Corporation v. E.J. Gallo Winery, 434 SCRA 473 (2007)
McDonalds Corp. v. L.C. Big Mak, 437 SCRA 10 (2004)
McDonalds Corp. v. Macjoy Fastfood Corp., 514 SCRA 95 (2007)

b) Unfair Competition
Sec. 168, IPC
Sec. 232, IPC
Difference between infringement and Unfair Competition
Del Monte Corporation v. CA, 181 SCRA 410
Pro Line Sports Center v. CA, 281 SCRA 162
Universal Rubber Products v. CA, 130 SCRA 162
Converse Rubber Corp. v. Jacinto Rubber and Plastic Co., 97 SCRA 158
Asia Brewery v. CA, 224 SCRA 437 (1993)
Solid Triangle v. Sheriff, 370 SCRA 491 (2001)
Sony Computer v. Supergreen, Inc., GR No. 161823, 22 March 2007
Sehwani, Inc. and Benitas Frites, Inc. vs. IN-N-OUT Burger, Inc., 536
SCRA 255 (2007)
Coca Cola v. Gomez, GR No. 154491, November 14, 2008
Superior Commercial Enterprises v. Kunnan Enterprises Ltd., GR No.
169974.
April 20, 2010

c) Action for False or Fraudulent Declaration
Sec. 162, IPC
Sec. 163, IPC
Sec. 164, IPC
Sec. 232, IPC

d) Action for False Designation of Origin
8
Sec. 169 (and its sub-paragraphs), IP code
Sec. 232, IPC

Criminal Action
Sec. 170, IPC
Sy v. Court of Appeals, 113 SCRA 334
Samson v. Judge Daway, GR Nos. 160054-55, July 21, 2004
William C. Yao, Sr. vs. The People of the Philippines, GR No. 168306. June 19,
2007

3.1.8 TRADENAMES
1. Definition
Sec. 121.3, IPC
Converse Rubber Corporation v. Universal Rubber Products, 117 SCRA 154

2. What may not be used as a Tradename?
Sec. 165.1, IPC

3. Rights of the Tradename owner
Secs. 165.2, IPC
Sec. 165.3, IPC
Sec. 165.4, IPC
Philips Export v. CA, 206 SCRA 457
Armco Steel Corporation v. SEC, 156 SCRA 822
Western Equipments & Supply Co. v. Reyes, 51 Phil 115

3.1.9 COLLECTIVE MARKS
1. Definition
Sec. 121.2, IPC

2. Section 167 (and its sub-paragraphs), IPC

Class 8 Quiz No. 3; Patent History, Patentability


4. LAW ON PATENTS

4.1 Legislative History
4.1.1 Republic Act No. 165
4.1.2 Republic Act No. 8293 (IPC)
Sec. 239.1, IPC
Sec. 235.1, IPC
Sec. 236.1, IPC
4.1.3 RA No. 9502 (Universally Accessible Cheaper and Quality Medicines Act of 2008)
(Amended IPC)

4.2 Definition

4.3 Purpose
Manzano v. CA, 278 SCRA 688
Pearl & Dean v. Shoemart, 409 SCRA 231 (2003)

4.4 What are patentable?

4.4.1 Inventions
Section 21, IPC


Standards:
9
a. Novelty
Sections 23-25, IPC
Maguan v. CA, 146 SCRA 107
Vargas v. F.M. Yaptico & Co., 40 Phil 195
Vargas v. Chua, 57 Phil 206
Frank v. Kosuyama, 59 Phil 206

b. Inventiveness
Section 26, IPC, as amended by RA No. 9502
(Universally Accessible Cheaper and Quality Medicines Act of 2008)
Aguas v. de Leon, 111 SCRA 238
Manzano v. CA, 278 SCRA 688

c. Industrial Application
Section 27, IPC

4.4.2 Utility Model
Sections 109.1, IPC

4.4.3 Industrial Designs
Sections 112, 113, 119.1, IPC


4.5 What are not patentable?
Section 22, IPC, as amended by RA No. 9502 (Universally Accessible Cheaper and
Quality Medicines Act of 2008)
Secs. 8-9, RA 165
Sec. 74, RA 165
Article 27, Agreement on Trade-Related Aspects of Intellectual Property (TRIPS)
Diamond v. Chakrabarty, 447 U.S. 303, 100 S. Ct. 2204
Plant Variety Protection Act, Republic Act No. 9168
Sections 32 and 34 of the IPRA Law (RA 8371)

4.6 Ownership of Patent
Section 28, IPC
Section 29, IPC
Section 30, IPC
Sections 67-70. IPC
Section 236, IPC

Class 9 Patent Application; Procedure for Grant of a Patent

4.7 Regular Application for Patent
4.7.1 Who may apply?
Sections 28-30, IPC
Section 68, IPC
Section 3, IPC
Section 231, IPC
Section 235, IPC

4.7.2 Application
Section 32-37, IPC
Section 38, IPC
Section 39, IPC
Section 8, IPC
Sections 108, 109.2, IPC (Utility Models)
Section 114-115, IPC (Industrial Design)

4.7.3 Priority Date
10
Section 31, IPC
Boothe v. Director of Patents, 95 SCRA 446

4.7.4 Filing Date
Sections 40-41, IPC
Section 116, IPC (Industrial Design)

4.7.5 Formality Examination
Section 42, IPC

4.7.6 Classification and Search
Section 43, IPC

4.7.7 Confidentiality before Publication
Section 45, IPC

4.7.8 Publication of Patent Application
Section 44, IPC

4.7.9 Rights Conferred by a Patent Application
After Publication
Section 46, IPC

4.7.10 Observation by Third Parties
Section 47, IPC

4.7.11 Request for Substantive Examination
Section 48, IPC
Schuartz v. CA, 335 SCRA 493 (2000)

4.7.12 Amendment
Section 49, IPC

4.7.13 Conversion
Sections 110 and 111, IPC

4.8 Philippine Rules on PCT Applications (Pursuant to Patent Cooperation Treaty ratified by
the Senate on 5 February 2001, PCT took effect for the Philippines on 17 August 2001)

4.9 Issuance or Refusal of Patents
Section 50, IPC
Section 51, IPC
Section 53, IPC
Sections 117 and 119, IPC (Industrial Design)
Pearl & Dean v. Shoemart, 409 SCRA 231 (2003)

4.10 Publication upon grant of Patents
Section 52, IPC

4.11 Term of Patent
Section 54, IPC (Invention Patent)
Section 109.3, IPC (Utility Model)
Section 118, IPC (Industrial Design)

4.12 Annual Fees
Section 55, IPC

4.13 Surrender, Correction and Amendment
Section 56, IPC
11
Sections 57-60, IPC

Class 10 Cancellation; Rights of Patentee; Licensing

4.14 Cancellation
1. Grounds
Section 61, IPC
Section 82, IPC
Section 109.4, IPC (Utility Model)
Section 120, IPC (Industrial Design)

2. Proceedings
Sections 62-66, IPC
Section 230, IPC

4.15 Rights of Patentee
1. Section 71, IPC
Parke Davis & Co. v. Doctors Pharmaceuticals, 124 SCRA 115
Limitations on the Rights of a Patentee:
Sec. 72, IPC as amended by RA No. 9502
(Universally Accessible Cheaper and Quality Medicines Act of 2008)
Secs. 73-74, IPC
Sec. 231, IPC
The Issue of Parallel Importation
Section 71, IPC
Article 6 of the TRIPS Agreement: The Doctrine of Exhaustion

2. Action for Infringement (Literal and Equivalent)
Vargas v. F.M. Yaptico, supra
Frank v. Benito, 51 Phil. 712
Frank v. Kosuyama, 59 Phil. 206
G. Sell v. Yap Jue, 12 Phil. 519
Maguan v. CA, 146 SCRA 107
Godines v. CA, 226 SCRA 338
Del Rosario v. CA, 255 SCRA 152
Smith Kline v. CA, 409 SCRA 33 (2003)

a. Civil Action for Infringement
Section 76, IPC, as amended by RA No. 9502
(Universally Accessible Cheaper and Quality Medicines Act of 2008)
Section 75, IPC

b. Criminal Action for Repetition of Infringement
Section 84, IPC

c. Administrative
Section 10.2, IPC

d. Who can file?
Section 77, IPC
Creser Precision System, Inc. v. CA, 286 SCRA 13

e Presumptions
Section 78, IPC

f. Damages
Secs. 79-80, IPC

g. Defenses in Action for Infringement
12
Section 81, IPC

h. Patent found invalid may be cancelled
Section 82, IPC

i. Assessors
Section 83, IPC

3. Licensing
a. Voluntary
Sections 83, IPC

b. Compulsory
Sections 93-95, IPC, as amended by RA No. 9502
(Universally Accessible Cheaper and Quality Medicines Act of 2008)
Sections 96-102, IPC
Price v. United Laboratories, 166 SCRA 133 (1988)
Smith Kline v. CA, 276 SCRA 224 (1997)
Smith Kline v. CA, 368 SCRA 9

4. Right to Transfer and Assign
Section 4.2, IPC
Sections 103-107, IPC
Sections 85-92, IPC
Albana v. Director of Patents, 93 Phil. 113

Class 11 Quiz No. 4; Patent Drafting

4.16 Patent Drafting Basics
4.17 Patent Application Exercise

Class 12 Other Intellectual Property

5.1 Trade Secrets
5.2 Geographical Indicators
5.3 Plant Varieties
5.4 Trademarks and the Internet

1. Domain Names
2. Cybersquatting and Domain Name Dispute Resolution

Research in Motion v. Georges Elias, Case No. D2009-0218, WIPO Arbitration and
Mediation Center (http://www.wipo.int/amc/en/domains/decisions/html/2009/d2009-
0218.html)

3. Meta-Tags and Cyberstuffing


Class 13

6.1 Special Rules for IP Courts
6.2 Catch Up and Review Outline

Class 14 Final Exams