WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOIP/N/1/PHL/C/3
IP/N/1/PHL/I/3
1 August 2001
(01-3808)
Council for Trade-Related Aspects of
Intellectual Property RightsOriginal:  English/
anglais/
inglés
MAIN DEDICATED INTELLECTUAL PROPERTY
LAWS AND REGULATIONS NOTIFIED UNDER
ARTICLE 63.2 OF THE AGREEMENT
PHILIPPINES
The present document reproduces the text1 of the IPO Rules and Regulations on Settlement of Disputes
(Involving Technology Transfer Payments and the Terms of a License Involving the Author's Right to PublicPerformance or Other Communication of his Work) of 2 October 1998, as notified by the Philippines under
Article 63.2 of the Agreement (see document IP/N/1/PHL/2).
Conseil des aspects des droits de propriété
intellectuelle qui touchent au commerce
PRINCIPALES LOIS ET RÉGLEMENTATIONS CONSACRÉES À LA
PROPRIÉTÉ INTELLECTUELLE NOTIFIÉES AU TITRE
DE L'ARTICLE 63:2 DE L'ACCORD
PHILIPPINES
Le présent document contient le texte1, daté du 2 octobre 1998, des Règles et Règlements de l'Office de
la propriété intellectuelle (IPO) sur le règlement des di fférends (relatifs aux paiements afférents aux transferts de
technologie ainsi qu'aux conditions attachées aux licences en relation avec le droit d'un auteur d'autoriser la
représentation ou l'exécution publiques ou autre transmi ssion publique de son œuvre), notifié par les Philippines
au titre de l'article 63:2 de l'Accord (voir le document IP/N/1/PHL/2).
Consejo de los Aspectos de los Derechos de Propiedad
Intelectual relacionados con el Comercio
PRINCIPALES LEYES Y REGLAMENTOS DEDICADOS A LA
PROPIEDAD INTELECTUAL NOTIFICADOS EN VIRTUD
DEL PÁRRAFO 2 DEL ARTÍCULO 63 DEL ACUERDO
FILIPINAS
En el presente documento se reproduce el texto1 de Normas y Reglamentos de la Oficina de la
Propiedad Intelectual sobre la solución de diferencias (relativas a los pagos por la transferencia de tecnología y a
las condiciones por las que se rigen las licencias aplicables al derecho de autor sobre la interpretación o
ejecución públicas y demás comunicaciones de su obra), de 2 de octubre de 1998, notificado por Filipinas envirtud del párrafo 2 del artículo 63 del Acuerdo (véase el documento IP/N/1/PHL/2).
                                                     
1 In English only./En anglais seulement./En inglés solamente.IP/N/1/PHL/C/3
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October 2, 1998    October 20, 1998
IPO RULES AND REGULATIONS ON SETTLEMENT OF DISPUTES
INVOLVING TECHNOLOGY TRANSFER PAYMENTS AND THE
TERMS OF A LICENSE INVOLVING THE AUTHOR'S RIGHT TO
PUBLIC PERFORMANCE OR OTHER COMMUNICATION OF HIS
WORK
Whereas , the State recognizes that an effective intellectual and industrial
property system is vital to the development of domestic creativity, facilitates transferof technology, attracts foreign investments and ensures market access for our
products;
Whereas , the State recognizes that the use of intellectual property bears a
social function and to this end, the State shall promote the diffusion of knowledge and
information for the promotion of national development and progress and the common
good;
Whereas , it is the policy of the State to enhance the enforcement of intellectual
property rights in the country; and, to protect and secure the exclusive rights of artists
and other gifted citizens to their intellectual property and creations, particularly when
beneficial to the people;
Now, therefore , pursuant to the provisions of Republic Act No. 8293,
otherwise known as the Intellectual Property Code of the Philippines, the following
rules and regulations on settlement of disputes involving technology transfer payments
and the terms of a license involving the author's right to public performance or other
communication of his work are hereby promulgated:
SECTION 1. Definition of Terms . — Unless otherwise specified, the
following terms shall have the meaning herein provided:
(a) "Author" means the natural person who has created the work;
(b) "Bureau" means the Documentation, Information and
Technology Transfer Bureau of the Intellectual Property Office;
(c) "Chief Mediator" means the Officer within the Bureau who
exercises immediate supervision over the Mediation Officer.The title or official designation of such officer may differ from
the words "Chief Mediator" depending on the structure of the
Office;IP/N/1/PHL/C/3
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(d) "Communication to the public" or "communicate to the public"
means the making of a work available to the public by wire or
wireless means in such a way that members of the public may
access these works from a place and time individually chosen
by them;
(e) "Computer software developed for mass market" shall mean
computer software, that:
(i) is produced, made and marketed for a broad range of
purposes and users including end-users and commercial
users;
(ii) is sold over the counter or via standard delivery
mechanisms;
(iii) involves payments that are not based on royalty;
(iv) generally provides for an indefinite term for the use of
the software; and
(v) does not need any customization by the supplier or
distributor.
(f) "Director General" means the head of the Intellectual Property
Office;
(g) "Director" means the Director of the Documentation,
Information and Technology Transfer Bureau;
(h) "Intellectual Property Rights" means:
1 Copyright and Related Rights;
2. Trademarks and Service Marks;
3. Geographic Indications;
4. Industrial Designs;
5. Patents;
6. Layout-Designs (Topographies) of Integrated Circuits;
and
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(i) "IP Code" means Republic Act No. 8293 otherwise known as
the Intellectual Property Code of the Philippines;
(j) "Mediation Officer" means the Officer within the Bureau
authorized to exercise the functions in these Regulations. The
title or official designation of such officer may differ from the
words "Mediation Officer" as the structure of the Office may be
set;
(k) "Office" means the Intellectual Property Office;(l) "IPO Gazette" means the Intellectual Property Office's own
publication where all matters required to be published under the
IP Code shall be published;
(m) "Public performance" means (1) in case of a work other than an
audiovisual work, the recitation, playing, dancing, acting or
otherwise performing the work, either directly or by means of
any device or process; (2) in the case of an audiovisual work,the showing of its images in sequence and the making of the
sounds accompanying it audible; and (3) in the case of a sound
recording, the act of making the recorded sounds audible at a
place or at places where persons outside the normal circle of a
family and that family's closest social acquaintances are or can
be present, irrespective of whether they are or can be present at
the same place and at the same time, or at different placesand/or at different times, and where the performance can be
perceived without the need for communication with the
meaning of "communication to the public" or "communicate to
the public".
(n) "Technology Transfer Arrangements" shall mean contracts or
agreements, including renewals thereof, involving the transfer
of systematic knowledge for the manufacture of a product, theapplication of a process, or rendering of a service including
management contracts; and the transfer, assignment or licensing
of all forms of intellectual property rights, including licensing
of computer software except computer software developed for
mass market.
The licensing of copyright is considered a technology transfer
arrangement only if it involves the transfer of systematic
knowledge.
(o) "Undisclosed Information" shall mean information which:IP/N/1/PHL/C/3
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(i) Is secret in the sense that it is not, as a body or in the
precise configuration and assembly of its components,
generally known among or readily accessible to persons
within the circles that normally deal with the kind of
information in question;
(ii) has commercial value because it is secret; and
(iii) has been subject to reasonable steps under the
circumstances to keep it secret, by the person lawfully incontrol of the information.
SECTION 2. Original Jurisdiction . — The Director General shall
exercise original jurisdiction to resolve disputes relating to the terms of a license
involving the author's right to public performance or other communication of his
work.
SECTION 3. Jurisdiction to Settle Disputes on Royalties . — The
Director shall exercise quasi-judicial jurisdiction in the settlement of disputes between
parties to a technology transfer arrangement arising from technology transfer
payments, including the fixing of appropriate amount or rate of royalty.
SECTION 4. Who may File a Complaint . — The aggrieved party or his
duly authorized representative may file a verified complaint with the Director upon
payment of the required filing fee. The verification portion of the complaint shallinclude a statement that to the best of his knowledge, the party commencing the action
has not filed any other administrative action or proceeding involving the same issue or
issues before any tribunal or agency nor such action or proceeding is pending in other
quasi-judicial bodies; provided, however, that if any such action is pending, the status
of the same must be stated and should knowledge thereof be acquired after the filing
of the complaint, the party concerned undertakes to notify the Office thereof within
five (5) days from such knowledge.
SECTION 5. Complaint Format . — The complaint shall be typewritten
with the title reflecting the names of all the parties concerned and shall state the
following:
(a) Name and address of the complainant and the name and address
of the respondent;
(b) Nature of the complaint and a concise statement of the ultimate
facts constituting the complaint; and
(c) The relief or reliefs prayed for.IP/N/1/PHL/C/3
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SECTION 6. Escrow . — Should any party elect to avail of the
provisions of the Civil Code of the Philippines on consignation with respect to the
royalty or any sum of money that may be involved in the dispute, the complainant
shall submit to the Bureau a certified copy of the Contract of Escrow.
SECTION 7. Mediation Process . — Within one (1) day from receipt of
the complaint, the Bureau shall docket the complaint and the Chief Mediator shall
assign and transmit the same to a Mediation Officer, with instructions to mediate thecase in accordance with these rules and regulations.
SECTION 8. Mediation Conference . — Within five (5) days from
receipt of an assignment, the Mediation Officer shall call the parties to a Mediation
Conference by sending each party a Notice of Settlement, under his own signature or
that of the Chief Mediator, stating the date and time of the conference. The Notice
intended for the Respondent shall be accompanied by a copy of the complaint and itsattachments.
SECTION 9. Venue of the Mediation Conference . — The Mediation
Conference and any session thereof shall be held within the premises of the Office.
However, upon written request and payment of the required fee, the Director may
authorize that the Mediation Conference or any session thereof be held outside the
premises of the Office provided that the same is necessary and will enhance theproceedings and the other party, if the request was made by only one party, agrees
thereto. The parties shall not unreasonably withhold their consent to such request. The
total cost to hold the Mediation Conference or any session thereof outside the
premises of the Office, including air transportation, accommodation and per diem,
shall be borne by the party requesting; and, if the request was made by all parties, the
total cost shall be shared by them equally or in such other proportion as they may state
in their request.
SECTION 10. Mediation Period . — During the Mediation Period both
the complainant and the respondent shall be given the opportunity to present their
respective positions and to submit the necessary documents to support their
arguments. The Mediation Officer shall endeavor to settle the case within theMediation Period which consists of thirty (30) days counted from the first day of the
Mediation Conference.
SECTION 11. Compromise/Mediation Agreement . — If, during the
Mediation Period, the parties agree to settle the case amicably, the
Compromise/Mediation Agreement shall be reduced into writing. If the parties request
in writing, the Mediation Officer shall draft the Compromise/Mediation Agreementwithin ten (10) days from receipt of the request and payment of the required fee. The
Chief Mediator shall review the draft within ten (10) days from the submission by the
Mediation Officer. The parties shall have ten (10) days from receipt of the draft fromIP/N/1/PHL/C/3
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the Chief Mediator within which to review, finalize and execute the
Compromise/Mediation Agreement. The parties shall submit the executed
Compromise/Mediation Agreement to the Director through the Chief Mediator by
means of a Motion for Judgment Based on Compromise/Mediation Agreement. The
Director shall decide said motion within thirty (30) days from receipt thereof.
SECTION 12. Failure of the Mediation Conference . — If the case is not
settled within the Mediation Period, the Mediation Conference shall be declared as afailure unless the parties request in writing to extend the same.
SECTION 13. Decision in Disputes Involving Technology Transfer
Payments . — In case of failure to settle a dispute involving technology transfer
payments, the Mediation Officer shall, within ten (10) days after the termination of the
Mediation Conference, submit to the Chief Mediator a report and draft decision on the
case, taking into account the evidences and documents presented by the parties. TheChief Mediator shall review the draft and submit his final recommendation and draft
to the Director within twenty (20) days from termination of the Mediation Conference.
The Director shall decide the case within thirty-five (35) days after the termination of
the Mediation Conference.
SECTION 14. Decision in Disputes Relating to Author's Right to Public
Performance or Other Communication of his work . — Disputes relating to the terms
of a license involving the author's right to public performance or other communication
of his work shall follow the foregoing procedure except that, instead of deciding the
case, the Director shall submit his findings, conclusions, recommendations and draft
decision to the Director General who shall render the final decision in the dispute.
SECTION 15. Appeal to the Director General . — The decision or final
order of the Director shall become final and executory fifteen (15) days after receipt ofa copy thereof by the appellant unless within the said period, a motion for
reconsideration is filed with the Director or an appeal to the Director General has been
perfected by filing a notice of appeal and payment of the required fee.
Only one motion for reconsideration of the decision or order of the Director
shall be allowed.
SECTION 16. Appellant's Brief Required . — The appellant shall, within
one (1) month from the date of filing of the notice of appeal, file a brief of the
authorities and arguments on which he relies to maintain his appeal. On failure to file
the brief within the time allowed, the appeal shall stand dismissed.
SECTION 17. Director's Comment . — The Director shall submit his
comments on the appellant's brief within one (1) month from receipt of the order of
the Director General requiring him to comment.IP/N/1/PHL/C/3
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SECTION 18. Appeal to the Secretary of Trade and Industry . — The
decision of the Director General shall be final and executory fifteen (15) days after
receipt of a copy thereof by the appellant unless an appeal to the Secretary of the
Department of Trade and Industry is perfected by filing a notice of appeal and
payment of the required fee. No motion for reconsideration of the decision or order of
the Director General shall be allowed.
Final Provisions
SECTION 19. Implementation.  — The Director General shall publish in a
newspaper of general circulation the corresponding notice as soon as the Office is in a
position to accept and process complaints governed by and in accordance with these
Regulations.
SECTION 20. Separability . — If any provision in these Regulations or
application of such provision to any circumstance is held invalid, the remainder of
these Regulations shall not be affected thereby.
SECTION 21. Effectivity . — These rules and regulations shall take effect
fifteen (15) days after publication in a newspaper of general circulation.
Done this 2nd day of October 1998.
(Sgd.) EMMA C. FRANCISCO
Director General
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