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Property Special Properties

MAD Notes

5. Atmospheric water; - when water evaporates in changes liquid into vapor which form
part of the atmosphere
Waters 6. Subterranean or ground waters; and
7. Seawater.

SUMMARY OF THE WATER CODE OF THE PHILIPPINES (PD NO. 1067) WATERS FOUND ON PRIVATE LANDS THAT BELONG TO THE STATE
(RLR-SS)
A decree instituting a Water Code, thereby revising and consolidating the laws governing 1. Continuous or intermittent waters rising on such lands;
the ownership, appropriation, utilization, exploitation, development, conservation and 2. Lakes and lagoons naturally occurring on such lands;
protection of water resources 3. Rain water falling on such lands;
4. Subterranean or ground waters; and
OBJECTIVES OF THE WATER CODE OF THE PHILIPPINES ( E D A A ) 5. Waters in swamps and marshes.
1. To establish the basic principles and framework relating to the appropriation,
control and conservation (ACC) of water resources and to achieve the optimum ARTICLE 6: The owner of the land where the water is found may use the same for
development and rational utilization of these resources; domestic purposes without securing a permit, provided that such use shall be registered,
2. To define the extent of the rights and obligations of water users and owners when required by the National Water Resources Council. I supposed that said council is no
including the protection and regulation of such rights; longer available.
3. To adopt a basic law regarding the ownership, appropriation, utilization, exploitation,
development, conservation and protection of water resources and rights to land related The Council, however, may regulate such use when there is (1) wastage, or (2) in times of
thereto; and ( A E O U D CP ) emergency.
4. To identify the administrative agencies which will enforce the Water Code.
ARTICLE 7: Subject to the provisions of the Water Code, any person who captures or
UNDERLYING PRINCIPLES OF THE WATER CODE OF THE PHILIPPINES collects water by means of cisterns, tanks or pools shall have exclusive control over
1. All waters belong to the State; such water and the right to dispose of the same.
2. All waters that belong to the State cannot be subject to acquisitive prescription;
3. The State may allow the use or development of waters by administrative APPROPRIATION OF WATERS as used in the Water Code, is the acquisition of rights
concession; over the use of waters or the taking or diverting of waters from a natural source in the
4. The utilization, exploitation, development, conservation and protection of water manner and for any purpose allowed by law.
resources shall be subject to the control and regulation of the government
through the Natural Water Resources Council; PURPOSES IN WHICH WATER MAY BE APPROPRIATED (DMIP-FLIRO)
it is now Natural Water Resources Board (NWRB) 1. Domestic is the utilization of water for drinking, washing, bathing, cooking or
5. Preference in the use and development of waters shall consider current usages other household needs, home gardens, and watering of lawns or domestic
and be responsive to the changing needs of the country. animals
2. Municipal is the utilization of water for supplying the water requirements of
WATERS as used in the Water Code, refers to water under the ground, water above the the community
ground, water in the atmosphere and the waters of the sea within the territorial 3. Irrigation is the utilization of water for producing agricultural crops
jurisdiction of the Philippines. 4. Power generation is the utilization of water for producing electrical or
mechanical power
WATERS THAT BELONG TO THE STATE (RSL - OA SS) 5. Fisheries is the utilization of water for the propagation and culture of fish as a
1. Rivers and their natural beds; commercial enterprise
2. Continuous or intermittent waters of springs and brooks running in their 6. Livestock raising is the utilization of water for large herds or flocks of animals
natural beds and the beds themselves; raised as a commercial enterprise
3. Natural lakes and lagoons; 7. Industrial is the utilization of water in factories, industrial plants and mines,
4. All other categories of surface waters such as water flowing over lands, water from including the use of water as an ingredient of a finished product
rainfall whether natural or artificial, and water from agricultural run-off, seepage and
drainage;
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8. Recreational and is the utilization of water for swimming pools, both houses, 4. The water supply needed for beneficial use;
boating, water skiing, golf courses and other similar facilities in resorts and other 5. Possible adverse effects;
places of recreation 6. Land-use economics; and
9. Other purposes 7. Other relevant factors.
- the sequence provided above (or the order of preference) shall be followed when Upon approval of an application, a water permit shall be issued and recorded.
priority in time of appropriation from a certain source of supply cannot be determined
ARTICLE 17: The right to the use of water is deemed acquired as of the date of filing of the
WATER RIGHT is the privilege granted by the government to appropriate and use water. application for a water permit in case of approved permits, or as of the date of actual use
in a case where no permit is required.
WATER PERMIT is the document evidencing the water right.
ARTICLE 18: All water permits granted shall be subject to conditions of beneficial use,
(GENERAL RULE) No person, including government instrumentalities or government- adequate standards of design and construction, and such other terms and conditions as
owned corporations, shall appropriate water without a water right, which shall be may be imposed by the Council.
evidenced by a document known as a water permit. xxx.

(EXCEPTION) Any person may appropriate or use natural bodies of water without securing ARTICLE 19: Water rights may be leased or transferred in whole or in part to another
a water permit for any of the following: person with prior approval of the Council, after due notice and hearing.
1. Appropriation of water by means of handcarried receptacles; and
2. Bathing or washing, watering or dipping of domestic or farm animals, and ARTICLE 20: The measure and limit of appropriation of water shall be beneficial use.
navigation of watercrafts or transportation of logs and other objects by
floatation. BENEFICIAL USE OF WATER is the utilization of water in the right amount during the
period that the water is needed for producing the benefits for which the water is
REGALIAN DOCTRINE is the doctrine recognized in our constitution whereby appropriated.
ownership of minerals and all forces of potential energy and other natural resources are
reserved for the State (see Article XII, Section 2, 1987 Constitution). ARTICLE 22: Between two or more appropriators of water from the same sources of
supply, priority in time of appropriation shall be given the better right, except that IN
OTHER PROVISIONS TIMES OF EMERGENCY the use of water for domestic and municipal purposes shall
ARTICLE 11: The State, for reasons of public policy, may declare waters not previously have a better right over all other uses; provided, that where water shortage is recurrent
appropriated, in whole or in part, exempt from appropriation for any or all purposes and, and the appropriator for municipal use has a lower priority in time of appropriation, then
thereupon, such waters may not be appropriated for those purposes. it shall be his duty to find an alternative source of supply in accordance with conditions
prescribed by the Council.
ARTICLE 12: Waters appropriated for a particular purpose may be applied for another
purpose only upon approval of the Council and on condition that the new use does not ARTICLE 23: Priorities may be altered on grounds of greater beneficial use, multi-purpose
unduly prejudice the rights of other permittees, or require an increase in the volume of use, and other similar grounds after due notice and hearing, subject to payment of
water. compensation in proper cases.

ARTICLE 15: Only citizens of the Philippines, of legal age, as well as juridical persons, who ARTICLE 24: A water right shall be exercised in such a manner that the rights of third
are duly qualified by law to exploit and develop water resources, may apply for water persons or of other appropriators are not prejudiced thereby.
permits.
ARTICLE 25: A holder of a water permit may demand the establishment of easements
ARTICLE 16: xxx. necessary for the construction and maintenance of the works and facilities needed for the
In determining whether to grant or deny an application, the Council shall consider the beneficial use of the waters to be appropriated, subject to the requirements of just
following: compensation and to the following conditions:
1. Protests filed, if any; 1. That he is the owner, lessee, mortgagee or one having real right over the land
2. Prior permits granted; upon which he proposes to use water; and
3. The availability of water;
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2. That the proposed easement is the most convenient and the least onerous to the ARTICLE 32: xxx.
servient estate. CONTROL AREA is an area of land where subterranean or ground water and surface water
Easements relating to the appropriation and use of waters may be modified by agreement are so interrelated that withdrawal and use in one similarly affects the other.
of the contracting parties provided the same is not contrary to law or prejudicial to third The boundary of a control area may be altered from time to time, as circumstances
persons. warrant.

ARTICLE 27: Water users shall bear the diminution of any water supply due to natural ARTICLE 33: Water contained in open canals, aqueducts or reservoirs of private persons
causes or force majeure. may be used by any person for domestic purpose or for watering plants as long as the
water is withdrawn by manual methods without checking the stream or damaging the
ARTICLE 28: Water permits shall continue to be valid as long as water is beneficially used; canal, aqueduct or reservoir; provided, that this right may be restricted by the owner
however, it may be suspended on the grounds of should it result in loss or injury to him.
1. Non-compliance with approved plans and specifications or schedules of water
distribution; ARTICLE 35: Works for the storage, diversion, distribution and utilization of water
2. Use of water for a purpose other than that for which it was granted; resources shall contain adequate provision for the prevention and control of diseases that
3. Non-payment of water charges; may be induced or spread by such works when required by the Council.
4. Wastage;
5. Failure to keep records of water diversion, when required; and ARTICLE 36: When the reuse of waste water is feasible, it shall be limited as much as
6. Violation of any term or condition of any permit or possible, to such uses other than direct human consumption.
7. Violation of rules and regulations promulgated by the Council. No person or agency shall distribute such water for public consumption until it is
8. Temporary permits may be issued for the appropriation and use of water for demonstrated that such consumption will not adversely affect the health and safety of the
short periods under special circumstances. public.

ARTICLE 29: Water permits may be revoked after due notice and hearing on GROUNDS ARTICLE 39: Except in cases of emergency to save life or property, the construction or
of: repair of the following works shall be undertaken only after the plans and specifications
1. Non-use; therefor, as may be required by the Council, are approved by the proper government
2. Gross violation of the conditions imposed in the permit; agency:
3. Unauthorized sale of water; 1. Dams for the diversion or storage of water;
4. Willful failure or refusal to comply with rules and regulations or any lawful 2. Structures for the use of water power;
order; 3. Installation for the utilization of subterranean or ground water and
5. Pollution; 4. Other structures for utilization of water resources.
6. Public nuisance; or
7. Acts detrimental to public health and safety; ARTICLE 42: Unless otherwise ordered by the President of the Philippines and only in
8. When the appropriator is found to be disqualified under the law to exploit and times of national calamity or emergency, no person shall induce or restrain rainfall by any
develop natural resources of the Philippines; method such as cloud seedling without a permit from the proper government agency.
9. When, in the case of irrigation, the land is converted to non-agricultural
purposes; and ARTICLE 44: Drainage systems shall be so constructed that their outlets are rivers, lakes,
10. Other similar grounds. the sea, natural bodies of water or such other water course as may be approved by the
proper government agency.
ARTICLE 31: Preference in the development of water resources shall consider
1. security of the State, ARTICLE 47: When the use, conveyance or storage of waters results in damage to another,
2. multiple use, the person responsible for the damage shall pay compensation.
3. beneficial effects,
4. adverse effects and ARTICLE 48: When a water resources project interferes with the access of a landowner to
5. costs of development a portion of his property or with the conveyance of irrigation or drainage water, the person
or agency constructing the project shall bear the cost of construction and maintenance of

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the bridges, flumes and other structures necessary for maintaining access, irrigation, or No water permit shall be granted to an individual when his water requirement can be
drainage, in addition to paying compensation for land and incidental damages. supplied through an irrigation association.

ARTICLE 50: Lower estates are obliged to receive the waters which naturally and without ARTICLE 75: No person shall, without prior permission from the National Pollution
the intervention of man flow from the higher estates, as well as the stone or earth which Control Commission, build any works that may produce dangerous or noxious substances
they carry with them. or perform any act which may result in the introduction of sewage, industrial waste, or
The owner of the lower estate can not construct works which will impede this natural flow, any pollutant into any source of water supply.
unless he provides an alternative method of drainage; neither can the owner of the higher Water pollution is the impairment of the quality of water beyond a certain standard. This
estate make works which will increase this natural flow. standard may vary according to the use of the water and shall be set by the National
Pollution Control Commission.
ARTICLE 52: The establishment, extent, form, and conditions of easements of water not
expressly determined by the provisions of this Code shall be governed by the provisions ARTICLE 76: The establishment of cemeteries and waste disposal areas that may affect
of the Civil Code. the source of a water supply or a reservoir for domestic or municipal use shall be subject
to the rules and regulations promulgated by the Department of Health.
ARTICLE 54: In declared flood control areas, rules and regulations may be promulgated
to prohibit or control activities that may damage or cause deterioration of lakes and dikes, ARTICLE 79: The administration and enforcement of the provisions of this Code, including
obstruct the flow of water, change the natural flow of the river, increase flood losses or the granting of permits and the imposition of penalties for administrative violation
aggravate flood problems. thereof, are hereby vested in the Council, and except in regard to those functions which
under the Code are specifically conferred upon other agencies of the government, the
ARTICLE 57: Any person may erect levees or revetment to protect his property from flood, Council is hereby empowered to make all decisions and determinations provided for in
encroachment by the river or change in the course of the river, provided that such this Code.
construction does not cause damage to the property of another.
ARTICLE 82: xxx.
ARTICLE 64: xxx. xxx.
No person shall drill a well without prior permission from the Council. Rules and regulations prescribed by any government agency that pertain to the utilization,
exploitation, development, control, conservation, or protection of water resources shall, if
ARTICLE 67: Any watershed or any area of land adjacent to any surface water or overlying the Council so requires, be subject to its approval.
any ground water may be declared by the Department of Natural Resources as protected
area. ARTICLE 84: The Council and other agencies authorized to enforce this Code are
Rules and regulations may be promulgated by such Department to prohibit or control such empowered to enter upon private lands, with previous notice to the owner, for the
activities by the owners or occupants thereof within the protected area which may damage purpose of conducting surveys and hydrologic investigations, and to perform such other
or cause the deterioration of the surface or ground water or interfere with the acts as are necessary in carrying out their functions including the power to exercise the
investigation, use, control, protection, management or administration of such waters. right of eminent domain.

ARTICLE 68: It shall be the duty of any person in control of a well to prevent the water ARTICLE 87: The Council or its duly authorized representative, in the exercise of its power
from flowing on the surface of the land, or into any surface water, or any porous stratum to investigate and decide cases brought to its cognizance, shall have the power to
underneath the surface without being beneficially used. administer oaths, compel the attendance of witnesses by subpoena and the production of
relevant documents by subpoena duces tecum.
ARTICLE 69: It shall be the duty of any person in control of a well containing water with Non-compliance or violation of such orders or subpoena and subpoena duces tecum shall
minerals or other substances injurious to man, animals, agriculture, and vegetation to be punished in the same manner as indirect contempt of an inferior court upon application
prevent such waters from flowing on the surface of the land or into any surface water or by the aggrieved party with the proper Court of First Instance (now Regional Trial Court)
into any other aquifer or porous stream. in accordance with the provisions of the Rules of Court.

ARTICLE 71: To promote better water conservation and usage for irrigation purposes, the ARTICLE 88: The Council shall have original jurisdiction over all disputes relating to
merger of irrigation associations and the appropriation of waters by associations instead appropriation, utilization, exploitation, development, control, conservation and protection
of by individuals shall be encouraged. of waters within the meaning and context of the provisions of this Code.
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The decisions of the Council on water rights controversies shall be immediately executory Definition of Minerals
and the enforcement thereof may be suspended only when a bond, in an amount fixed by
the Council to answer for damages occasioned by the suspension or stay of execution, shall All inorganic subsances found in nature, whether in solid, liquid, gaseous, or any
have been filed by the appealing party, unless the suspension is by virtue of an order of a intermediate state, wit the EXCEPTION of soil which supports the organic life,
competent court. and of ordinary earth, gravel, sand and stone which are used for building or
All disputes shall be decided within sixty (60) days after the parties submit the same for construction purposes.
decision or resolution.
The Council shall have the power to issue writs of execution and enforce its decisions with Definition of Mineral Lands
the assistance of local or national police agencies.>
Those in which mineral exist in sufficient quantity or quality to justify the
ARTICLE 89: The decisions of the Council on water rights controversies may be appealed necessary expenditures to be incurred in extracting and utilizing such minerals
to the Court of First Instance (now Regional Trial Court) of the province where the subject
matter of the controversy is situated within fifteen (15) days from the date the party Governing laws
appealing receives a copy of the decision, on any of the following GROUNDS:
1. Basic law
1. Grave abuse of discretion;
2. Question of law; and Governed by special laws
3. Questions of fact and law. The present basic law is the Mineral Resources Development Decree of 1974 (PD
463) which governs mining claims and the grant of exploitation rights thereon.
ARTICLE 96: No vested or acquired right to the use of water can arise from acts or 2. Constitutional Provisions
omissions which are against the law or which infringe upon the rights of others.
Article XII, Section 2.
ARTICLE 97: Acts and contracts under the regime of old laws, if they are valid in
accordance therewith, shall be respected, subject to the limitations established in this All lands of the public domain, waters, minerals, coal, petroleum, and other
Code. mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora
Any modification or extension of these acts and contracts after the promulgation of this and fauna, and other natural resources are owned by the State. With the exception
Code, shall be subject to the provisions hereof. of agricultural lands, all other natural resources shall not be alienated. The
exploration, development, and utilization of natural resources shall be under the full
ARTICLE 98: Interim rules and regulations promulgated by the Council shall continue to
control and supervision of the State.
have binding force and effect, when not in conflict with the provisions of this Code.

(This law superseded provisions of the civil code relating to water rights.) The State may directly undertake such activities, or it may enter into co-production,
joint venture, or production-sharing agreements with Filipino citizens, or
corporations or associations at least sixty per centum of whose capital is owned by
such citizens. Such agreements may be for a period not exceeding twenty-five years,
renewable for not more than twenty-five years, and under such terms and conditions
as may be provided by law. In cases of water rights for irrigation, water supply
Minerals fisheries, or industrial uses other than the development of water power, beneficial
use may be the measure and limit of the grant.
Art. 519. Mining claims and rights and other matters concerning minerals and
The State shall protect the nations marine wealth in its archipelagic waters,
mineral lands are governed by special laws.
territorial sea, and exclusive economic zone, and reserve its use and enjoyment
exclusively to Filipino citizens.

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The Congress may, by law, allow small-scale utilization of natural resources by identify his goods and distinguish them from those manufactured, sold or
Filipino citizens, as well as cooperative fish farming, with priority to subsistence dealt by others.
fishermen and fishworkers in rivers, lakes, bays, and lagoons.
What is tradename?
The President may enter into agreements with foreign-owned corporations
Name or symbol of store, business or occupation. It means the designation
involving either technical or financial assistance for large-scale exploration,
identifying or distinguishing an enterprise.
development, and utilization of minerals, petroleum, and other mineral oils
according to the general terms and conditions provided by law, based on real What is a service mark?
contributions to the economic growth and general welfare of the country. In such
agreements, the State shall promote the development and use of local scientific It means a mark that is used in sale or advertising of services to identify
and technical resources. services of one person and distinguish them from the services of others.

Mark
The President shall notify the Congress of every contract entered into in accordance
with this provision, within thirty days from its execution. Means any visible sign capable of distinguishing the goods or services and shall
include a stamped or marked container of goods
Suppose There Are Minerals on Private Lands? Trademark and trade name distinguished
These minerals are still owned by the State. This is true even if the land has the Trademark generally consists of the sign, emblem, label, mark, or device by
Torrens Title. This is because the ownership of mines, from their very nature, which the goods produced or marketed by a person are distinguished or
should not depend upon the ownership of the soil. distinguishable from those produced or marketed by another and must be
affixed to the goods.
Salient Features of the Mining Act
On the other hand, a trade name is descriptive of the manufacturer of dealer
According to its declared policy, it shall be the responsibility of the State to himself as much as his own name is, and frequently includes the name of the
promote and enhance national growth. place where the business is located.
Involves the individuality of the manufacturer or dealer for purposes of
trade protection, avoiding confusion and securing advantages of a good
business reputation.
It is more applied to goodwill in business and need not be affixed to the
goods sold.
Trademarks and Trade Names TRADE NAME >>>> refers to BUSINESS AND ITS GOODWILL

TRADE MARK >>>> refers to GOODS


Art. 520. A trade-mark or trade-name duly registered in the proper government
bureau or office is owned by and pertains to the person, corporation, or firm Other Notes:
registering the same, subject to the provisions of special laws. (n)
A word or phrase may nonetheless be not merely a trade name but also a trade
mark within the meaning of the law when it is inscribed on all the products of a
manufacturer to serve not only as a sign or symbol
What is trademark? (WEN SS DC ) The ownership of trade mark or trade name is a property right which the owner
is entitled to protect since there is damage to him form confusion of reputation
It includes any word, name, symbol, emblem or sign or device or any
or goodwill in the mind of the public as from confusion of goods.
combination thereof adopted and used by a manufacturer or merchant to

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Article 8 of the Convention of the Union of Property to which the Philippines d. When the name has become a generic or common descriptive name.
became a party on Sep. 27, 1965, provides that a trade name [corporation
name] shall be protected in all the countries of the union without the Does membership in the Paris Union automatically entitle to the protection of their
obligation of filing or registration, whether or not it forms part of the trademark. trademarks in the Philippines?
The object of the convention is to accord a national of a member nation extensive
No, absent actual use of the marks in local commerce and trade.
protection against infringement and other types of unfair competition. The
mandate of the Paris Convention is implemented in Section 37 of RA 166,
otherwise known as the Trademark Law which provides that persons who are
nationals of, domiciled in, or have a bona fi de or effective business or commercial Art. 521. The goodwill of a business is property, and may be transferred together
establishment in any foreign country, which is a party to an international with the right to use the name under which the business is conducted. (n)
convention or treaty relating to marks or tradenames on the repression of unfair
competition to which the Philippines may be a party, shall be entitled to the
benefits and subject to the provisions of RA 166. What is Goodwill?
What is the test of determining existing of confusing similiarity in corporate name? It is the advantage acquired by any product or firm because of general
encouragement and patronage of the public.
The test is whether the similarity is such as to mislead a person using ordinary
Its elements are (PNR)
care and discrimination.
a. Place
It suffices that confusion is probably likely to occur.
b. Name
Necessity of Registration at the Patent Office c. Reputation

A certificate of registration of a trademark is prima facie evidence of the validity Goodwill as property
of such registration, but the same may be rebutted
While goodwill is considered property; it is not an independent property which
Duration of the Marks is separable from the firm or business which owns it.

10 years provided that the registrant shall file a declaration of actual use and
evidence to that effect, or shall show valid reasons based on the existence of
Art. 522. Trade-marks and trade-names are governed by special laws. (n)
obstacles to such use, as prescribed by the Regulations, within one (1) year from
the fifth anniversary of the date of the registration of the mark. Otherwise, the
mark shall be removed from the Register by the Intellectual Property Office.

Doctrine of Equivalents

It provides that an infringement also takes place when a device appropriates a


prior invention by incorporating its innovative concept and, although with some
modification and change, performs substantially the same function in
substantially the same way to achieve substantially the same result.

Grounds for the Cancellation of the Registration

a. There has been abandonment


b. Fraudulently or illegally made
c. Used to misrepresent the source of the goods

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