CORPORATION 1.
WHAT IS A FOREIGN CORPORATION
Foreign Elements
 The corporation was incorporated in another
state (issue in its citizenship)
o It is a licensed to do business
o It is not licensed to do business
 The corporation is domiciled in a state but a
resident of another state (the issue is its
domicile and residence)
o A corporation can only have 1 domicile but it
can be a resident of a several states
o The domicile of a corporation is the state of
his incorporation
o The residence of a corporation is wherever it
is “engaged in the trade or business”
- A resident foreign corporation to be a foreign
corporation engaged in trade or business within
the Philippines while a non-resident foreign
corporation is a foreign corporation not engaged
in trade or business within the Philippines.”
(Section 1 (d)
QUICK NOTES:
1. Importance of Citizenship – engagement in
“nationalized business,” ownership of real
property in the Philippines
2. Importance of Domicile – for fixing the venue for
personal actions
o For purposes of VENUE, domicile and
residence are the same.
3. Importance of Residence – for taxation
purposes
Section 2, Rule 4 (VENUE)
Section 2. Venue of personal actions. — All other
actions may be commenced and tried where the
plaintiff or any of the principal plaintiffs resides, or
where the defendant or any of the principal
defendants resides, or in the case of a non-resident
defendant where he may be found, at the election of
the plaintiff.
 Is one formed, organized or existing under any
laws other than those of the Philippines AND
whose laws allow Filipino citizens to do
business in its own country or states.
2 requisites to do business in the Philippines:
o Reciprocity
o Secure a License
2. CLASSIFICATION OF FOREIGN CORPORATIONS
(1) For Tax Purposes:
a. Resident
b. Non-resident
(2) As to Citizenship:
a. Domestic
b. Foreign
NATIONALITY AND DOMICILE OF CORPORATION
1. CITIZENSHIP OF JURIDICAL ENTITY
 Definition of a DOMESTIC corporation
 All others are FOREIGN corporation
Section 2. Corporation defined. – A corporation is an
artificial being created by operation of law, having the
right of succession and the powers, attributes and
properties expressly authorized by law or incident to
its existence.
2. TESTS TO DETERMINE THE CITIZENSHIP OF
CORPORATIONS
 THE GRANDFATHER TEST – governs the strict
application of the ownership of a corporation,
namely, at least 60% thereof must be OWNED by
natural persons who are citizen of the
Philippines.
 THE CONTROL TEST – shares belonging to
corporations or partnerships at least 60%
capital stock of which is owned by Filipino
citizens shall be considered as of Philippine
nationality, but if the % of Filipino ownership is
less than 60%, only the number of shares
corresponding to such % shall be counted as of
Philippine nationality.
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3. DOMICILE OF JURIDICAL PERSON
Article 51. When the law creating or recognizing
them, or any other provision does not fix the domicile
of juridical persons, the same shall be understood to
be the place where their legal representation is
established or where they exercise their principal
functions.
Application for a license (The SEC)
4. PURPOSE OF LICENSE
 Corporation have no legal status beyond the
bounds of the state where they were created.
 They need a license to be allowed to do business
in another country
 This is necessary to subject the foreign
corporation to the jurisdiction of the Philippine
courts.
 Appointment of a resident agent is a requisite in
its application
5. APPLICABLE LAW IN INTERNAL AFFAIRS AND
INTRA-CORPORATE DISPUTES.
GR: Foreign Corporation lawfully doing business in
the Philippines are bound by the same laws
applicable to domestic corporation
XPN: Intra-corporate disputes is a controversy
 (a) which arises out of intra-corporate or
partnership between and among stockholders,
members, or associates; between any or all of
them and the corporation, partnership or
association of which they are stockholders,
members or associates; between such
corporations, partnership or association and
the state insofar as it involves their individual
franchise or right to exist.
DOING BUISNESS (Defined under Section 1, RA 5455
and Article 44 of the Omnibus Investment Code)
Section 1. xx… the phrase "doing business" shall
include soliciting orders, purchases, service
contracts, opening offices, whether called "liaison"
offices or branches; appointing representatives or
distributors who are domiciled in the Philippines or
who in any calendar year stay in the Philippines for a
period or periods totaling one hundred eighty days or
more; participating in the management, supervision
or control of any domestic business firm, entity or
corporation in the Philippines; and any other act or
acts that imply a continuity of commercial dealings or
arrangements, and contemplate to that extent the
performance of acts or works, or the exercise of
some of the functions normally incident to, and in
progressive prosecution of, commercial gain or of
the purpose and object of the business organization.
xxx.. the phrase "doing business" shall include
soliciting orders, purchases, service contracts,
opening offices, whether called "liaison" offices or
branches; appointing representatives or distributors
who are domiciled in the Philippines for a period or
periods totalling one hundred eighty (180) days or
more; participating in the management, supervision
or control of any domestic business firm, entity or
corporation in the Philippines, and any other act or
acts that imply a continuity of commercial dealings or
arrangements and contemplate to that extent the
performance of acts or works, or the exercise of
some of the functions normally incident to, and in
progressive prosecution of, commercial gain or of
the purpose and object of the business organization.
Corporation Code
Section 129. Law applicable. – Any foreign
corporation lawfully doing business in the
Philippines shall be bound by all laws, rules and
regulations applicable to domestic corporations of
the same class, except such only as provide for the
creation, formation, organization or dissolution of
corporations or those which fix the relations,
liabilities, responsibilities, or duties of stockholders,
members, or officers of corporations to each other or
to the corporation.
5.1. APPLICABLE LAW IN INTERNAL AFFAIRS
AND INTRA-CORPORATE DISPUTES
o Oscar Reyes vs RTC Et.Al.
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6. JURISDICTION OVER INTERNAL MATTERS
 Sec 29, Corp Code – the law of the country of
incorporation of the foreign corporation shall
govern internal disputes
 It does not however divest Philippine courts of
jurisdiction over internal matters.
 If filed in the Phil Courts, it will apply the
Doctrine of Forum Non Convenience,
Considering the Following:
o Nature of the suit
o Availability of records and witnesses in then
forum
o Interests of the parties and the public
o Amenability to or availability to court
processes
o Whether it is more convenient to file it in its
country of incorporation
7. MERGER OR CONSOLIDATION OF FOREIGN
CORPORATIONS
 May a foreign and domestic corp merge or
consolidate” YES, if allowed by PH and the
country of its incorporation
 File with the SEC the Article of Merger or
Consolidation
 File a petition for withdrawal of its license if the
absorbed corporation is foreign.
8. DOING BUSINESS WITHOUT A LICENSE (SEC 133,
CORP CODE)
 Are foreign corporation doing business without
a license absolutely prohibited from suing in
court?
 What is the status of the contract entered into by
such corporation?
9. WHAT CONSTITUTED “DOING BUSINESS”
 No general rule as to what constitute “doing” or
“engaging” or “transacting” business
 Each case must be decided on its own particular
circumstances
 It however, implies a continuity of commercial
dealings and intention to establish a continuous
business
 It does not depend on the number of frequency
of transactions
 Foreign corporations ordinarily conduct
business through agents in the Philippines.
10. SINGLE-ACT TRANSACTION RULE “NOT
CONSTITUTING DOING BUSINESS”
 Occasional
 Incidental
 Casual
11. WHEN SINGLE ACT CONSTITUTES DOING
BUSINESS
 The single transaction must not be merely
casual or incidental, but is of such character as
distinctly to indicate a purpose on the part of the
foreign corporation to do other business in the
country, and to make a base of corporations for
the conduct of a part of the corporation’s
ordinary business.
12. UNLICENSED CORPORATION CANNOT SUE:
EXCEPTION
Section 133. Doing business without a license. –
No foreign corporation transacting business in the
Philippines without a license, or its successors or
assigns, shall be permitted to maintain or intervene
in any action, suit or proceeding in any court or
administrative agency of the Philippines; but such
corporation may be sued or proceeded against
before Philippine courts or administrative tribunals
on any valid cause of action recognized under
Philippine laws.
REASONS:
 To have them submit to the jurisdiction of the
Philippine courts
 If they do not submit to local laws, it is just fair
that they not be allowed to invoke the court’s
jurisdiction by suing in such court.
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SUMMARY
 License Foreign Corporation - it can sue and be
sued in the Ph.
 Unlicensed Foreign Corporation – it cannot sue
but it can be sued.
Exception:
o Although not licensed, it can sue if its rights
are violated in the Ph
o A party is estopped from challenging the
personality of a corp after having
acknowledgment the same by entering a
contract with it (estopped). The unlicensed
corp can then sue
o It it is sued, the corporation cannot invoke its
lack of license (estopped)
13. EFFECT OF LACK OF LICENSE ON CONTRACTS
 Sec 133 of the Corporation Code does not
declared the contract entered into by a foreign
corp doing business without a license, as null
and void.
 The contract is enforceable upon compliance
with the license requirements.
 Sec 144 penalizes the officer of a foreign corp
concerned for doing business without a license.
14. SECURING LICENSE CURES THE DEFECT AND
ENTITLES IT TO SUE
 Unless in the meantime, the action has
prescribed
15. …
16. FOREIGN CORPORATIONS NOT DOING BUSINESS
IN THE PHILIPPINES RAISING COUNTERCLAIMS.
 By filing a petition for prohibition (against a
wrongful assumption of jurisdiction), it is not
thereby suing, so that it need not comply first
with the license requirement.
TRABSBOUNDARY POLLUTION
FOREING ELEMENT
 The sources of the pollution is in one state, it
passes through another state but he effects are
felt in a third state.
 In this case, what the law should be applied?
APPROACHES TO TRANSBOUNDARY POLLUTION
1. Governmental Interest Analysis - a 3-tiered
approach that involves an examination of
whether there is a difference in the law of the
jurisdiction involved, whether there is a true
conflict of law, and if a true conflict exists, the
court will apply the law of the state whose
interest is more impaired.
2. Lex Loci Delicti - the law of the place of injury
governs the rights and liabilities of the parties.
3. Most Significant Relationship Approach - the
law of the state which has the most connection
shall be applied in the resolution of the conflict
TRADEMARK, PATENTS, AND COPYRIGHT
What is Intellectual Property?
Article 712. Ownership is acquired by occupation and
by intellectual creation.
Ownership and other real rights over property are
acquired and transmitted by law, by donation, by
testate and intestate succession, and in
consequence of certain contracts, by tradition.
They may also be acquired by means of prescription.
Foreign Element
 Infringement on a patent, trademark or
copyright is done outside of the state of
registration and the intellectual property laws
of the 2 countries involved are different.
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Registrability of patent – patented in one state but not
patentable in another – which applies?
Ex. Computer programs are patentable in the
US but not in the Ph (they are only copyrightable in the
Ph)
1. PHILIPPINE MEMBERSHIP IN THE PARIS
CONVENTION FOR THE PROTECTION OF
INDUSTRIAL PROPERTY
 Entered into force by the Philippines on
September 27, 1995
 By signing the treaty, member states have
agreed to afford protection to patents, utility
models, industrial design, trademark, service
mark, other IPs
 Foreign nationals thus have the same rights and
privilege as Filipino citizens (National
Treatment Principle)
Coverage of the Paris Convention
GATT – (General Agreement on Tariffs and Trade) the
WTO’s creation on January 1, 1995 marked the biggest
reform of international trades since the end t=of the
Second World War. Whereas the GATT mainly dealt
with trade in goods, the WTO and its agreement also
cover trade in service and intellectual property. The
birth of the WTO also created new procedures for the
settlement of disputes.
Paris Convention for the Protection of Industrial
Property
 The Paris Convention, adopted in 1883, applies
to industry property in the widest sense,
including patents, trademark, industrial
designs, utility models, service marks, trade
names, geographical modifications and the
repression of unfair competition. This
international agreement was the first major
step taken to help creators ensure that their
intellectual works were protected in other
countries.

o Patents TRIPS Agreement

o Trademarks
 The agreement on trade-related aspects of
o Industrial designs
intellectual property rights is an international
o Utility models
legal agreement between all the member
o Service marks
nations of the World Trade Organization
o Trade names
 In this agreement, members of WTO gave
o Geographical indication, and
agreed to adhere to the standards of the
o The repression of unfair competition
following conventions:
o Trademark and tradenames play an
o Berne Convention – Protection of Literary
important role in commerce and industry
and Artistic Works
o Connected with economic development
o Rome Convention – Protection of
o Encourages investment
Performers, Producers of Phenograms
o Stimulates creative efforts
o Paris Convention (1967) – Intellectual
o Speed up transfer of technology
Property
o Ensures market access to our products.
RA 8293 (Intellectual Property Code)

 Took effect January 1, 1998

WTO – is the only global international organization
 Repealed the
dealing with the rules of trade between nations. At its
o Trademark law
heart, the WTO agreements, negotiated and singed by
o Patent law
the bulk of the world’s trading nations and ratified in
o Articles 188 and 189, RPC
their parliaments. The goal is to help producers of
o Decree of compulsory reprinting of foreign
goods and services, exports, and imports conduct
textbook
their business.
 It was passed as requirement of the WTO
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2. CASES
3. HOW OWNERSHIP OF TRADEMARKS AND TRADE
NAMES IS ACQUIRED
a. Section 122, RA 8293 - right to a trademark is
acquire through REGISTRATION
b. Section 2-A of RA 166, as amended by RA 638
– ownership of mark is acquired through
ACTUAL USE.
Therefore: there are two (2) ways to acquire
ownership of a mark:
a. By REGISTRATION without alleging or
claiming use
b. By ACTUAL USE of the mark with or without
registration
 Prior to RA 8293, it has been held that
registration is an admin act declratory of a pre-
existing rght of ownership by the actual use of
the mark.
 Registration does not perfect a TM or the TN
right
 Actual use perfect such right
The Rule:
a. Between 2 similar TM –the prior user prevails
b. Between 2 similar marks which are both
registered , the prior user prevails over the
non-user or later user.
124.2. The applicant or the registrant shall file a
declaration of actual use of the mark with evidence to
that effect, as prescribed by the Regulations within
three (3) years from the filing date of the application.
Otherwise, the application shall be refused or the
mark shall be removed from the Register by the
Director.
* Non-use shall not be excused except when he
cannot use the mark for reasons beyond his control
* Lack of funds is not a valid reason for non-use
On the requirement of use:
 A mark which is non-registerable may become
distinctive and capable of registration by
substantially exclusive and continuous use for
5 years before the date of application.
 Registration alone does not confer upon the
registrant the absolute right of the registered
mark. The requirement of actual use must be
complied with.
 Actual use without registration vs. registration
without actual use: former prevails
 The use must be in commerce in the Ph
 Foreign use must does not create trademark
right in the Ph
 Adoption (ads, price lists, etc) is not equivalent
to use
 Sale of goods bearing the mark in use
4. PRIOR USER RULE UNDER SECTION 2-A OF RA
166, AS AMENDED BY RA 638
 The agent (importer or distributor) of the owner
does not acquire ownership of the marks
 Sale by the TM of the goods does not carry with
it the sale of the TM
5. IMPORTANCE OF REGISTRATION
 Goodwill of the business property and may be
transferred
 Ownership acquired by registration is
temporary unless coupled with actual use
 Registration is a prima facie evidence of
ownership of the mark
6. LEGAL BASS OF THE RIGHTS IF FOREIGN
NATIONALS TO PROTECTION IN THE PH
a. Reciprocity – his country grants the same
protection to Filipino citizens (proof of the
foreign law must be presented)
b. Treaty, convention or agreement
Section 160. Right of Foreign Corporation to Sue in
Trademark or Service Mark Enforcement Action. -
Any foreign national or juridical person who meets
the requirements of Section 3 of this Act and does not
engage in business in the Philippines may bring a civil
or administrative action hereunder for opposition,
cancellation, infringement, unfair competition, or
false designation of origin and false description,
whether or not it is licensed to do business in the
Philippines under existing laws.
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7. …
8. RIGHTS UNDER THE PARIS CONVENTION
 The underlying principle is that foreign
nationals should be given the same treatment in
each member countries as the country gives to
its citizens.
9. RIGHTS OF FOREIGN NATIONALS TO REGISTER
TRADEMARKS IN THE PH
 A foreign national may register his TM in the IPO
 Ph law governs the requirements
 Intent to use, not actual use, is enough
 If the TM is registered OR there is a pending
application abroad, he may claim right of
priority to the mark on the date of its filing
abroad.
10. RIGHT OF PRIORITY IF FOREIGN APPLICANTS
 Right of Priority is one granted to an applicant
who has previously filed an application in any of
the member countries of considering his
application filed in the Philippines as if it were
filed on the date the first application was filed in
the country of origin, subject to certain
conditions.
11. WHEN APPLICATION MAY BE REFUSED
Section 123. Registrability. - 123.1. A mark cannot be
registered if it:
(a) Consists of immoral, deceptive or scandalous
matter,
(b) Consists of the flag or coat of arms or other
insignia
(c) Consists of a name, portrait or signature
identifying a particular living individual
(d) Is identical with a registered mark
(e) Is identical with, or confusingly similar to, or
constitutes a translation of a mark which is
considered by the competent authority of the
Philippines to be well-known internationally and
in the Philippines
(f) Is identical with, or confusingly similar to, or
constitutes a translation of a mark
(g) Is likely to mislead the public
(h) Consists exclusively of signs that are generic for
the goods or services that they seek to identify;
(i) Consists exclusively of signs or of indications
that have become customary or usual to
designate the goods or services in everyday
language or in bona fide and established trade
practice;
(j) Consists exclusively of signs or of indications
that may serve in trade to designate the kind,
quality, quantity, intended purpose, value,
geographical origin, time or production of the
goods or rendering of the services, or other
characteristics of the goods or services
(k) Consists of shapes that may be necessitated by
technical factors or by the nature of the goods
themselves or factors that affect their intrinsic
value;
(l) Consists of color alone, unless defined by a given
form; or
(m) Is contrary to public order or morality.
12. REGISTRATION IS INDEPENDENT OF OTHERS;
TERRITORIALITY
Ex. The registration of a mark in the US shall not
afford protection against the use of the same in
the Ph, by another, UNLESS the registrant or
owner hhas either previously registered the
mark in the Ph OR actually used it in commerce in
this country, in which case, the protection
afforded the TM owner is based on Ph registration
or in prior use of the marl in this country.
13. FOREIGN REGISTRATION’S RIGHT TO ASSIGN
TRADEMARK,
 May be assigned to anyone he chooses
 To be valid against third parties, it must conform
with the requirements of the Ph law;
o Assignment may be with or without the
transfer of the business using the mark
o In writing
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 o Recorded in the IPO
o Shall not mislead the public
14. RIGHT TO PROTECT COLLECTIVE MARKS
COLLECTIVE MARK – any visible sign designated
as such in the application for registration and
capable of distinguishing the origin or any other
common characteristics of different enterprise
which use the sign under the contract of the
registered owner of the collective marks
 The application shall designate the mark as
collective mark and shall be accompanied by
the copy of the agreement, If any, governing the
use of the mark .
15. RIGHT TO PROTECT SERVICEMARKS
 Is any visible sign capable of distinguishing the
service of an enterprise
 No registration is required. In lieu of
registration, SM must be used in commerce in
the Ph. (Ex. YouTube)
16. SOURCES OF RIGHTS AND LEGAL REMEDIES
 The law of TM rests upon the principle of
territoriality or the nationality. TM protection
has its source in, and is subject to the limitations
of, Ph law.
 Hence, the tight of foreign nationals proceeds
only from his prior use in commerce in the Ph
OR from registration in IPO.
 The protection afforded by registration is
broader than that accorded by prior use for
certain legal remedies, which requires
registration for certain legal remedies.
17. LEGAL REMEDIES OF FOREIGN NATIONALS FOR
INVASION OF THEIR RIGHTS
 Action for damages and injunction based on
infringement, unfair competition, false
designation and false description.
 Petition to oppose registration, to cancel
registration and for seizure of prohibited goods.
18. INFRINGEMENT OF TRADEMARKS, DEFINED.
 Those goods involved must be so related that
there is likelihood of confusion of goods or
confusion or business or origin.
Section 155. Remedies; Infringement. - Any person
who shall, without the consent of the owner of the
registered mark:
155.1. Use in commerce any reproduction, counterfeit,
copy, or colorable imitation of a registered mark or
the same container or a dominant feature thereof in
connection with the sale, offering for sale,
distribution, advertising of any goods or services
including other preparatory steps necessary to carry
out the sale of any goods or services on or in
connection with which such use is likely to cause
confusion, or to cause mistake, or to deceive; or
155.2. Reproduce, counterfeit, copy or colorably
imitate a registered mark or a dominant feature
thereof and apply such reproduction, counterfeit,
copy or colorable imitation to labels, signs, prints,
packages, wrappers, receptacles or advertisements
intended to be used in commerce upon or in
connection with the sale, offering for sale,
distribution, or advertising of goods or services on or
in connection with which such use is likely to cause
confusion, or to cause mistake, or to deceive, shall be
liable in a civil action for infringement by the
registrant for the remedies hereinafter set forth:
Provided, That the infringement takes place at the
moment any of the acts stated in Subsection 155.1 or
this subsection are committed regardless of
whether there is actual sale of goods or services
using the infringing material.
19. INFRINGEMENT VS UNFAIR COMPETITION
 Both have the common conception that one
person shall not be permitted to misrepresent
that his goods or business are the goods or the
business of another.
 Unfair competition is broader an d more
inclusive
 Infringement is more limited
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  Infringement applies to violation of TM or TN
while unfair competition includes wrongful acts
of competition not involving any violation of any
TM right.
20.
..
21.
INFRINGEMENT OF TRADE NAME
 TM is to GOODS
 TN is to BUSINESS
o Any individual name or surname
o Firm name
o Device or word to identify their business
o It refers to the business and its goodwill
 Infringement of TM requires that the marks be
registered
 Infringement in TN does not require
registration.
22. INFRINGEMENT OF NAME AND MARK OF
OWNERSHIP STAMPED ON CONTAINERS.
RA 623
AN ACT TO REGULATE THE USE OF DULY STAMPED
OR MARKED BOTTLES, BOXES, CASKS, KEGS,
BARRELS AND OTHER SIMILAR CONTAINERS
Sec. 2. It shall be unlawful for any person, without
the written consent of the manufacturer, bottler or
seller who has successfully registered the marks of
ownership in accordance with the provisions of the
next preceding section, to fill such bottles, boxes,
kegs, barrels, or other similar containers so marked
or stamped, for the purpose of sale, or to sell, dispose
of, buy, or traffic in, or wantonly destroy the same,
whether filled or not, or to use the same for drinking
vessels or glasses or for any other purpose than that
registered by the manufacturer, bottler or seller. Any
violation of this section shall be punished by a fine or
not more than one hundred pesos or imprisonment of
not more than thirty days or both.
Sec. 3. The use by any person other than the
registered manufacturer, bottler, or seller, without
written permission of the latter, of any such bottle,
cask, barrel, keg, box or other similar container, or
the possession thereof WITHOUT WRITTEN
PERMISSION of the manufacture, by any junk dealer
or dealer in casks, barrels, kegs, boxes, or other
similar containers, the same being duly marked or
stamped and registered as herein provided, shall be
prima facie evidence that such use, or possession is
unlawful.
Sec. 5. No action shall be brought under this Act
against any person to whom the registered
manufacturer, bottler, or seller, has transferred by
way of sale, any of the containers herein referred to,
but the sale of the beverage contained in the said
containers shall not include the sale of the
containers unless specifically so provided.
Sec. 6. The provision of this Act shall not be
interpreted as prohibiting the use of bottles as
containers for "sisi", "bagoong", "patis", and similar
native products.
23. UNFAIR COMPETITION
Competition, to be unfair must:
a. Involve an injury to a competitor or trade rival
and
b. Involve acts which are characterized as
“contrary to good conscience” or “shocking to
judicial sensibilities” or otherwise unlawful.
 It is the act of passing off or attempting to pass
off upon the public the goods, business or
services of one as and for the gods, business or
services of another.
24. GOODWILL IS WHAT THE LAW PROTECTS
AGAINST UNFAIR COMPETITION
 One who has built up goodwill and reputation
for this goods, business or services in entitled
to all the benefits therefrom.
25. INJURY BROUGHT BY UC; DIVERSION OF TRADE
AND LOSS OF SALES.
GR: There must be diversion of trade and loss of sales
for UC to prosper.
XPN: If the injury is to the goodwill of the business
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26. SALE IS NOT AN INDISPENSABLE ELEMENT OF
UC
GR: the defendant must have passed off and sold the
goods of another as his own for him to be liable for UC
 But intent to sell as enough to hold him liable,
which is implied from the number of goods he
has made and the nature of the machinery he
has installed for the purpose.
27. PROTECTION OF WELL-KNOWN TRADEMARKS
(DOMINANCY TEST AND HOLISTIC TEST)
 TM which are well-known internationally and
locally are protected even if they are not
registered in the Ph
 Ex. Adidas, Nike, etc.
In determining whether a TM is well-known,
account shall be taken of the knowledge of the
relevant sector of the public, rather than the public at
large including knowledge in the Ph which has been
obtained as a result of the promotion of the mark.
DOMINANCY TEST – focuses on the similarity of the
prevalent features of the competing trademark
which might cause confusion and deception .
HOLISTIC TEST – the entirety of the marks in question
must be considered in determining confusing
similarity.
PATENTS
28. RIGHT OF FOREIGNERS WITH RESPECT TO
PATENTS AND COPYRIGHT.
Section 71. Rights Conferred by Patent. - 71.1. A patent
shall confer on its owner the following exclusive
rights:
(a) Where the subject matter of a patent is a product,
to restrain, prohibit and prevent any
unauthorized person or entity from making,
using, offering for sale, selling or importing that
product;
(b) Where the subject matter of a patent is a process,
to restrain, prevent or prohibit any unauthorized
person or entity from using the process, and from
manufacturing, dealing in, using, selling or
offering for sale, or importing any product
obtained directly or indirectly from such process.
29. COMPULSORY LICENSING
 The grant of the patent is conditioned that he
would work out his patent, otherwise, upon
specification by a party, compulsory licensing
maybe granted to a petitioner.
Section 93. Grounds for Compulsory Licensing. - The
Director of Legal Affairs may grant a license to
exploit a patented invention, even without the
agreement of the patent owner, in favor of any person
who has shown his capability to exploit the invention,
under any of the following circumstances:
93.1. National emergency or other circumstances of
extreme urgency;
93.2. Where the public interest, in particular, national
security, nutrition, health or the development of
other vital sectors of the national economy as
determined by the appropriate agency of the
Government, so requires; or
93.3. Where a judicial or administrative body has
determined that the manner of exploitation by the
owner of the patent or his licensee is anti-
competitive; or
93.4. In case of public non-commercial use of the
patent by the patentee, without satisfactory reason;
93.5. If the patented invention is not being worked in
the Philippines on a commercial scale, although
capable of being worked, without satisfactory
reason: Provided, That the importation of the
patented article shall constitute working or using the
patent.
JESBRUSARAM
 COPYRIGHT

30. DEFINITION OF COPYRIGHT

 Is the right granted by statute to the author or

originator of literary, scholarly, scientific, or
artistic productions, including computer
programs.
 A copyright gives him the legal right to
determine how the work is used and to obtain
the economic benefits from the work.

31. TERMS OF PROTECTION

 The terms of protection is during the life of the

author AND for 50 years after his death.

32. REMEDY FOR INFRINGEMENT

 Author is entitled to the remedy against

infringement (damages, injunction and/or
criminal prosecution)

33. BERNE CONVENTION

 The agreement ids for the protection of the

rights of authors in their literary and artistic
works.

34. RECIPROCITY AND INTERNATIONAL

CONVENTIONS.

REVERSE RECIPROCITY –

Section 231. Reverse Reciprocity of Foreign Laws. -

Any condition, restriction, limitation, diminution,
requirement, penalty or any similar burden imposed
by the law of a foreign country on a Philippine national
seeking protection of intellectual property rights in
that country, shall reciprocally be enforceable upon
nationals of said country, within Philippine
jurisdiction.

JESBRUSARAM