PHILIPPINE DISTRIBUTION CODE Chapter 4.

Distribution Planning
Chapter 5. Distribution Operations
The restructuring of the electric power industry in the Philippines as Chapter 6. Distribution Revenue Metering Requirements
envisioned in Republic Act No. 9136, also known as the “Electric Chapter 7. Distribution Code Transitory Provisions
Power Industry Reform Act of 2001,” will result in significant Chapter 8. Performance Standards for Distributors & Suppliers
changes in distribution system operations and management. The Act Chapter 1 of the PDC contains the general provisions that apply to all
allows end-use consumers belonging to the contestable market to the other Chapters of the Distribution Code. It specifies the
obtain power from independent suppliers who are licensed by the authority of ERC to promulgate and enforce the Distribution Code. It
ERC. Electricity consumers will have the option to purchase electric also contains articles on construction of references, definition of
energy from a variety of resources other than those selected by terms, and abbreviations used in the Distribution Code.
their local distributor. Chapter 2 of the PDC provides the guidelines for Distribution
Distributors must provide wheeling services to such customers. Management, the procedures for dispute resolution, the required
Distributors must also procure energy supplies to serve the Management Reports and the procedures for Distribution Code
remainder of their customers from the Wholesale Electricity Spot revision and enforcement.
Market or through bilateral contracts. Chapter 3 of the PDC specifies the minimum technical, design and
The Act mandated the creation of the Energy Regulatory operational criteria and the procedures to be complied with by any
Commission (ERC). Section 43(b) of the Act provides that the ERC User who is connected or seeking connection to a Distribution
promulgate and enforce a National Grid Code and a Distribution System. User data submission requirements are also included in this
Code which shall include, but not be limited to: (a) Performance Chapter.
Standards for TRANSCO O & M Concessionaire, distribution utilities Chapter 4 of the PDC specifies the technical and design criteria and
and suppliers, and (b) Financial Capability Standards for the procedures to be applied in planning the development or
generating companies, the TRANSCO, distribution utilities and reinforcement of a Distribution System. Articles on demand
suppliers. The Act also mandates the ERC to enforce compliance to forecasts, planning data, and required technical studies are likewise
the Grid Code, the Distribution Code, and the Market Rules, and to included in this Chapter.
impose fines and penalties for violations of their provisions.
Chapter 5 of the PDC establishes the rules and procedures to be
The Distribution Code defines the technical aspects of the working followed by all Users of the Distribution System to ensure that
relationship between the distributors and all the users of the reliable distribution services are achieved for all distribution
distribution system. Electric distributors must deliver electric energy customers. Articles on Operational procedures and arrangements,
to the electricity users at acceptable levels of service quality. On the Operational Liaison, Operational Reports, Demand Control,
other hand, the users of the distribution systems must comply with Emergency Operations, Safety Coordination, Testing and
certain rules and standards to avoid adverse effect on the Monitoring, System Test, Maintenance Procedures, and Equipment
distribution system. The reliability of the distribution system Numbering and Nomenclature are likewise included in this Chapter.
depends on the performance of the various components of the
distribution network. Thus, major components such as power Chapter 6 of the PDC specifies the technical and design criteria
substations, primary lines, distribution transformers, secondary lines associated with the measurement of electric energy as well as the
and service lines, must perform satisfactorily. procedures for providing metering data for billing and payment.

The policies, decisions and actions of the Distributor on matters Chapter 7 of the PDC specifies the rules and procedures pertaining
involving the operation, maintenance and development of the to compliance with the provisions of the Distribution Code during
distribution system will affect industry participants and the users of the transition period from the existing industry structure to the new
the distribution system. It is important, therefore, that all affected industry structure. The procedures for the grant of exemption from
parties have a voice in making policies and decisions involving the specific requirements of the Distribution Code are also addressed in
operation, maintenance and development of the distribution this Chapter.
system. The Distribution Code provides this mechanism through the Chapter 8 of the PDC specifies the standards to ensure the quality,
Distribution Management Committee that will relieve the ERC from reliability and efficiency of the Distribution System, as well as
the tedious task of monitoring day-to-day operations of the customer service standards for the protection of end-users in both
distribution system. captive and contestable markets. This Chapter also addresses safety
Combined with the Philippine Grid Code, the Distribution Code will standards for the protection of personnel in the power distribution
ensure that the total electric energy supply system of the Philippines environment.
operates efficiently to provide reliable and economic service to all Chapter 9 of the PGC specifies the standards to ensure the quality,
distribution customers. reliability and efficiency of the Transmission System, as well as
The Distribution Code is organized into eight (8) Chapters. These are: safety standards for the protection of personnel in the power
transmission environment.
Chapter 1. Distribution Code General Conditions
Chapter 2. Distribution Management
Chapter 3. Distribution Connection Requirements
CHAPTER IV
LABELING AND FAIR PACKAGING b) directions for use, if necessary;

Article 74. Declaration of Policy. – The State shall enforce c) warning of toxicity;
compulsory labeling, and fair packaging to enable the consumer to
obtain accurate information as to the nature, quality and quantity of d) wattage, voltage or amperes; or
the contents of consumer products and to facilitate his comparison
of the value of such products. e) process of manufacture used if necessary.

Article 75. Implementing Agency. – The Department of Trade and Any word, statement or other information required by or under
Industry shall enforce the provisions of this Chapter and its authority of the preceding paragraph shall appear on the label or
implementing rules and regulations: Provided, That with respect to labeling with such conspicuousness as compared with other words,
food, drugs, cosmetics, devices and hazardous substances, it shall be statements, designs or devices therein, and in such terms as to
enforced by the concerned department. render it likely to be read and understood by the ordinary individual
under customary conditions of purchase or use.
Article 76. Prohibited Acts on Labeling and Packaging. – It shall be
unlawful for any person, either as principal or agent, engaged in the The above requirements shall form an integral part of the label
labeling or packaging of any consumer product, to display or without danger of being erased or detached under ordinary handling
distribute or to cause to be displayed or distributed in commerce of the product.
any consumer product whose package or label does not conform to
the provisions of this Chapter. Article 78. Philippine Product Standard Mark. – The label may
contain the Philippine Product Standard Mark if it is certified to have
The prohibition in this Chapter shall not apply to persons engaged in passed the consumer product standard prescribed by the concerned
the business of wholesale or retail distributors of consumer products department.
except to the extent that such persons:
Article 79. Authority of the Concerned Department to Provide for
a) are engaged in the packaging or labeling of such products; Additional Labeling and Packaging Requirements. – Whenever the
concerned department determines that regulations containing
b) prescribe or specify by any means the manner in which requirements other than those prescribed in Article 77 hereof are
such products are packaged or labeled; or necessary to prevent the deception of the consumer or to facilitate
value comparisons as to any consumer product, it may issue such
c) having knowledge, refuse to disclose the source of the rules and regulations to:
mislabeled or mispackaged products.
a) establish and define standards for characterization of the
Article 77. Minimum Labeling Requirements for Consumer Products. size of a package enclosing any consumer product which may be
– All consumer products domestically sold whether manufactured used to supplement the label statement of net quality, of contents
locally or imported shall indicate the following in their respective of packages containing such products but this clause shall not be
labels of packaging: construed as authorizing any limitation on the size, shape, weight,
dimensions, or number of packages which may be used to enclose
a) its correct and registered trade name or brand name; any product;

b) its duly registered trademark; b) regulate the placement upon any package containing any
product or upon any label affixed to such product of any printed
c) its duly registered business name; matter stating or representing by implication that such product is
offered for retail at a price lower than the ordinary and customary
d) the address of the manufacturer, importer, repacker of the retail price or that a price advantage is accorded to purchases
consumer product in the Philippines; thereof by reason of the size of the package or the quantity of its
contents;
e) its general make or active ingredients;
c) prevent the nonfunctional slack-fill of packages containing
f) the net quality of contents, in terms of weight, measure or consumer products.
numerical count rounded of to at least the nearest tenths in the
metric system; For purposes of paragraph (c) of this Article, a package shall be
deemed to be nonfunctionally slack-filled if it is filled to substantially
g) country of manufacture, if imported; and less than its capacity for reasons other than (1) protection of the
contents of such package, (2) the requirements of machines used for
h) if a consumer product is manufactured, refilled or enclosing the contents in such package, or (3) inherent
repacked under license from a principal, the label shall so state the characteristics of package materials or construction being used.
fact.
Article 80. Special Packaging of Consumer Products for the
The following may be required by the concerned department in Protection of Children. – The concerned department may establish
accordance with the rules and regulations they will promulgate standards for the special packaging of any consumer product if it
under authority of this Act: finds that:

a) whether it is flammable or inflammable;

a) the degree or nature of the hazard to children in the
availability of such product, by reason of its packaging, is such that a) if its labeling or advertising is false or misleading in any
special packaging is required to protect children from serious way;
personal injury or serious illness resulting from handling and use of
such product; and b) if it is offered for sale under the name of another food;

b) the special packaging to be required by such standard is c) if it is an imitation of another food, unless its label bears in
technically feasible, practicable and appropriate for such product. In type of uniform size and prominence, the word "imitation" and,
establishing a standard under this Article, the concerned immediately thereafter, the name of the food imitated;
department shall consider:
d) its containers is so made, formed, or filled as to be
1) the reasonableness of such standard; misleading;

2) available scientific, medical and engineering data e) if in package form unless it bears a label conforming to the
concerning special packaging and concerning accidental, ingestions, requirements of this Act: Provided, That reasonable variation on the
illnesses and injuries caused by consumer product; requirements of labeling shall be permitted and exemptions as to
small packages shall be established by the regulations prescribed by
3) the manufacturing practices of industries affected by this the concerned department of health;
Article; and
f) if any word, statement or other information required by or
4) the nature and use of consumer products. under authority of this Act to appear on the principal display panel
of the label or labeling is not prominently placed thereon with such
Article 81. Price Tag Requirement. – It shall be unlawful to offer any conspicuousness as compared with other words, statements,
consumer product for retail sale to the public without an designs or devices in the labeling and in such terms as to render it
appropriate price tag, label or marking publicly displayed to indicate likely to be read and understood by the ordinary individual under
the price of each article and said products shall not be sold at a price customary conditions of purchase and use;
higher than that stated therein and without discrimination to all
buyers: Provided, That lumber sold, displayed or offered for sale to g) if it purports to be or is represented as a food for which a
the public shall be tagged or labeled by indicating thereon the price definition or standard of identity has been prescribed unless:
and the corresponding official name of the wood: Provided, further,
That if consumer products for sale are too small or the nature of 1) it conforms to such definition and standard; and
which makes it impractical to place a price tag thereon price list
placed at the nearest point where the products are displayed 2) its labels bears the name of the food specified in the
indicating the retail price of the same may suffice. definition or standards, and insofar as may be required by such
regulations, the common names of optional ingredients other than
Article 82. Manner of Placing Price Tags. – Price tags, labels or spices, flavoring and coloring, present in such food;
markings must be written clearly, indicating the price of the
consumer product per unit in pesos and centavos. h) if it purports to be or represented as:

Article 83. Regulations for Price Tag Placement. – The concerned 1) a food for which a standard of quality has been prescribed
department shall prescribe rules and regulations for the visible by regulations as provided in this Act and its quality fall below such
placement of price tags for specific consumer products and services. standard, unless its label bears in such manner and form as such
There shall be no erasures or alterations of any sort of price tags, regulations specify, a statement that it falls below such standard; or
labels or markings.
2) a food for which a standard or standards or fill of
Article 84. Additional Labeling Requirements for Food. – The container have been prescribed by regulations as provided by this
following additional labeling requirements shall be imposed by the Act and it falls below the standard of fill of container applicable
concerned department for food: thereto, unless its label bears, in such manner and form as such
regulations specify, a statement that it falls below such standard;
a) expiry or expiration date, where applicable;
i) if it is not subject to the provisions of paragraph (g) of this
b) whether the consumer product is semi-processed, fully Article unless its label bears:
processed, ready-to-cook, ready-to-eat, prepared food or just plain
mixture; 1) the common or usual name of the food, if there be any;
and
c) nutritive value, if any;
2) in case it is manufactured or processed from two or more
d) whether the ingredients use are natural or synthetic, as ingredients, the common or usual name of such ingredient; except
the case may be; the spices, flavorings and colorings other than those sold as such,
may be designated as spices, flavorings and colorings without
e) such other labeling requirements as the concerned naming each: Provided, That to the extent that compliance with the
department may deem necessary and reasonable. requirement of clause (2) of this paragraph is impracticable or
results in deception or unfair competition, exemptions shall be
Article 85. Mislabeled Food. – A food shall also be deemed established by regulations promulgated by the concerned
mislabeled: department of health;
 and exemptions as to small packages shall be established by
j) if it purports to be or is represented for special dietary regulations prescribed by the concerned department.
uses, unless its label bears such information concerning its vitamin
or mineral or other dietary properties as the concerned department c) if any word, statement or other information required by or
determines to be, or by regulations prescribed as necessary in order under authority of this Act to appear on the principal display panel
fully to inform purchasers as its value for such uses; of the label or labeling is not prominently placed thereon with such
conspicuousness as compared with other words, statements,
k) if it bears or contains any artificial flavoring, artificial designs or devices in the labeling and in such terms as to render it
coloring, or chemical preservative, unless it bears labeling, stating likely to be read and understood by the ordinary individual under
that fact: Provided, That to the extent that compliance with the customary conditions of purchase and use;
requirements of this paragraph is impracticable, exemptions shall be
established by regulations promulgated by the concerned d) if it is for use by man and contains any quantity of the
department. The provisions of this paragraph or paragraphs (g) and narcotic or hypnotic substance alpha-eucaine, barbituric acid, beta-
(i) with respect to the artificial coloring shall not apply in the case of eucaine, bromal, cannabis, carbromal, chloral, coca, cocaine,
butter, cheese or ice cream. codeine, heroin, marijuana, morphine, opium, paraldehyde, peyote
or sulfonmethane, or any chemical derivative of such substance,
Article 86. Labeling of Drugs. – The Generics Act shall apply in the which derivative has been designated by the concerned department
labeling of drugs. after investigation, and by regulations as habit forming; unless its
label bears the name and quantity or proportion of such substance
Article 87. Additional Labeling Requirements for Cosmetics. – The or derivative and in juxtaposition therewith the statement
following additional requirements may be required for cosmetics: "Warning-May be habit forming";

a) expiry or expiration date; e) its labeling does not bear:

b) whether or not it may be an irritant; 1) adequate directions for use; and

c) precautions or contra-indications; and 2) such adequate warning against use in those pathological
conditions or by children where its use may be dangerous to health,
d) such other labeling requirements as the concerned or against unsafe dosage or methods or duration of administration
department may deem necessary and reasonable. or application, in such manner and form, as are necessary for the
protection of users: Provided, That where any requirement of clause
Article 88. Special Labeling Requirements for Cosmetics. – A (1) of this paragraph, as applied to any drug or device, is not
cosmetic shall be deemed mislabeled: necessary for the protection of the public health, the concerned
department may promulgate regulations exempting such drug or
a) if its labeling or advertising is false or misleading in any device from such requirement;
way;
f) if it purports to be a drug the name of which is recognized
b) if in package form unless it bears a label conforming to the in an official compendium, unless it is packaged and labeled as
requirements of labeling provided for in this Act or under existing prescribed therein: Provided, That the method of packing may be
regulations: Provided, That reasonable variations shall be permitted, modified with the consent of the concerned department;
and exemptions as to small packages shall be established by
regulations prescribed by the concerned department; g) if it has been found by the concerned department to be a
drug liable to deterioration, unless it is packaged in such form and
c) if any word, statement or other information required by or manner, and its label bears a statement of such precautions, as the
under authority of this Act to appear on the label or labeling is not concerned department, shall by regulations, require as necessary for
prominently placed thereon with such conspicuousness, as the protection of the public health;
compared with other words, statements, designs or devices in the
labeling, and in such terms as to render it likely to be read and h) 1) if it is a drug and its container is so made, formed or
understood by the ordinary individual under customary conditions filled as to be misleading; or
of purchase and use;
2) if it is an imitation of another drug; or
d) if its container is so made, formed or filled as to be
misleading; or 3) if it is dangerous to health when used in the dosage, or
with the frequency of duration prescribed, recommended or
e) if its label does not state the common or usual name of its suggested in the labeling thereof;
ingredients.
j) if it is, purports to be or is represented as a drug
Article 89. Mislabeled Drugs and Devices. – A drug or device shall be composed wholly or partly of insulin or of any kind of penicillin,
deemed to be mislabeled: streptomycin, chlortetracycline, chloramphenicol, bacitracin, or any
other antibiotic drug, or any derivative thereof, unless:
a) if its labeling is false or misleading in any way;
1) it is from a batch with respect to which a certificate of
b) if its in package form unless it bears a label conforming to release has been issued pursuant to regulations of the concerned
the requirements of this Act or the regulations promulgated department; and
therefor: Provided, that reasonable variations shall be permitted
2) such certificate of release is in effect with respect to such statements may be in English language or its equivalent in Filipino;
drug: Provided, That this paragraph shall not apply to any drug or and
class of drugs exempted by regulations promulgated under
Authority of this Act. 2) on which any statement required under clause 1) of this
paragraph is located prominently in bright red and orange color with
Article 90. Regulation-making Exemptions. – The concerned a black symbol in contrast typography, layout or color with the other
department may promulgate regulations exempting from any printed matters on the label.
labeling requirements of this Act food, cosmetics, drugs or devices
which are, in accordance with the practice of trade, to be processed, Article 92. Exemptions. – If the concerned department finds that for
labeled or repacked in substantial quantities at establishments other good or sufficient reasons, full compliance with the labeling
than those where originally processed, labeled or packed on requirements otherwise applicable under this Act is impracticable or
condition that such food, cosmetics, drugs or devices are not is not necessary for the adequate protection of public health and
adulterated or mislabeled under the provisions of this Act and other safety, it shall promulgate regulations exempting such substances
applicable laws upon approval from such processing, labeling and from these requirements to the extent it deems consistent with the
repacking establishments. objective of adequately safeguarding public health and safety, and
any hazardous substance which does not bear a label in accordance
Article 91. Mislabeled Hazardous Substances. – Hazardous with such regulations shall be deemed mislabeled hazardous
substances shall be deemed mislabeled when: substance.

a) having been intended or packaged in a form suitable for Article 93. Grounds for Seizure and Condemnation of Mislabeled
use in households, especially for children, the packaging or labeling Hazardous Substances. –
of which is in violation of the special packaging regulations issued by
the concerned department; a) Any mislabeled hazardous substance when introduced into
commerce or while held for sale shall be liable to be proceeded
b) such substance fails to bear a label; against and condemned upon order of the concerned department in
accordance with existing procedure for seizure and condemnation of
1) which states conspicuously: articles in commerce: Provided, That this Article shall not apply to a
hazardous substance intended for export to any foreign country if:
(i) the name and the place of business of the manufacturer,
packer, distributor or seller; 1) it is in a package labeled in accordance with the
specifications of the foreign purchaser;
(ii) the common or usual name or the chemical name, if there
be no common or usual name, of the hazardous substance or of 2) it is labeled in accordance with the laws of the foreign
each component which contributes substantially to the harmfulness country;
of the substance, unless the concerned department by regulation
permits or requires the use of the recognized generic name; 3) it is labeled on the outside of the shipping package to
show that it is intended for export; and
(iii) the signal word "danger" on substances which are
extremely flammable, corrosive or highly toxic; 4) it is so exported,

(iv) the signal word "warning" or "caution" with a bright red or b) any hazardous substance condemned under this Article
orange color with a black symbol on all other hazardous substances; shall after entry of order of condemnation be disposed of by
destruction or sale as the concerned department may direct, and
(v) a clear statement as to the possible injury it may cause if the proceeds thereof, if sold, less the legal cost and charges, shall be
used improperly; paid into the treasury of the Philippines; but such hazardous
substance shall not be sold under any order which is contrary to the
(vi) precautionary measures describing the action to be provisions of this Act; Provided, That, after entry of the order and
followed or avoided; upon the payment of the costs of such proceedings and the
execution of a good and sufficient bond conditioned that such
(vii) instructions when necessary or appropriate for first-aid hazardous substance shall not be sold or disposed of contrary to the
treatment; provisions of this Act, the concerned department may direct that
such hazardous substance be delivered to or retained by the owner
(viii) the word" poison" for any hazardous substance which is thereof for destruction or for alteration to comply with the
defined as highly toxic; provisions of this Act under the supervision of an officer or
employee duly designated by the concerned department. The
(ix) instructions for handling and storage of packages which expenses for such supervision shall be paid by the person obtaining
require special care in handling and storage; and release of the hazardous substance under bond.

(x) the statement "keep out of the reach of children", or its c) all expenses in connection with the destruction provided
practical equivalent, if the article is not intended for use by children for in paragraphs (a) and (b) of this Article and all expenses in
and is not a banned hazardous substance, with adequate directions connection with the storage and labor with respect to such
for the protection of children from the hazard involved. The hazardous substance shall be paid by the owner or consignee, and
aforementioned signal words, affirmative statements, description of default in such payment shall constitute a lien against any
precautionary measures, necessary instructions or other words or importation by such owner or consignee.
Article 94. Labeling Requirements of Cigarettes. – All cigarettes for 22.5. Aesthetic creations; and
sale or distribution within the country shall be contained in a
package which shall bear the following statement or its equivalent in 22.6. Anything which is contrary to public order or morality. (Sec. 8,
Filipino: "Warning" Cigarette Smoking is Dangerous to Your Health". R.A. No. 165a)
Such statement shall be located in conspicuous place on every
cigarette package and shall appear in conspicuous and legible type in Section 23. Novelty. . - An invention shall not be considered new if it
contrast by typography, layout or color with other printed matter on forms part of a prior art. (Sec. 9, R.A. No. 165a)
the package. Any advertisement of cigarette shall contain the name
warning as indicated in the label. Section 24. Prior Art. - Prior art shall consist of:

Article 95. Penalties. – 24.1. Everything which has been made available to the public
anywhere in the world, before the filing date or the priority date of
a) Any person who shall violate the provisions of Title III, Chapter IV the application claiming the invention; and
of this Act, or its implementing rules and regulations, except Articles
81 to 83 of the same Chapter, shall be subject to a fine of not less 24.2. The whole contents of an application for a patent, utility
than Five hundred pesos (P500.00) but not more than Twenty model, or industrial design registration, published in accordance
thousand pesos (P20,000.00) or imprisonment of not less than three with this Act, filed or effective in the Philippines, with a filing or
(3) months but not more than two (2) years or both, at the priority date that is earlier than the filing or priority date of the
discretion of the court: Provided, That, if the consumer product is application: Provided, That the application which has validly claimed
one which is not a food, cosmetic, drug, device or hazardous the filing date of an earlier application under Section 31 of this Act,
substance, the penalty shall be a fine of not less than Two hundred shall be prior art with effect as of the filing date of such earlier
pesos (P200.00) but not more than Five thousand pesos (P5,000.00) application: Provided further, That the applicant or the inventor
or imprisonment of not less than one (1) month but not more than identified in both applications are not one and the same. (Sec. 9,
one (1) year or both, at the discretion of the court. R.A. No. 165a)

b) Any person who violates the provisions of Article 81 to 83 Section 25. Non-Prejudicial Disclosure. . - 25.1. The disclosure of
for the first time shall be subject to a fine of not less than Two information contained in the application during the twelve (12)
hundred pesos (P200.00) but not more than Five thousand pesos months preceding the filing date or the priority date of the
(P5,000.00) or by imprisonment of not less than one (1) month but application shall not prejudice the applicant on the ground of lack of
not more than six (6) months or both, at the discretion of the court. novelty if such disclosure was made by:
A second conviction under this paragraph shall also carry with it the
penalty of revocation of business permit and license. (a) The inventor;

CHAPTER II (b) A patent office and the information was contained (a) in
PATENTABILITY another application filed by the inventor and should not have been
disclosed by the office, or (b) in an application filed without the
Section 21. Patentable Inventions. - Any technical solution of a knowledge or consent of the inventor by a third party which
problem in any field of human activity which is new, involves an obtained the information directly or indirectly from the inventor; or
inventive step and is industrially applicable shall be Patentable. It
may be, or may relate to, a product, or process, or an improvement (c) A third party which obtained the information directly or
of any of the foregoing. (Sec. 7, R.A. No. 165a) indirectly from the inventor.

Section 22. Non-Patentable Inventions. - The following shall be 25.2. For the purposes of Subsection 25.1, "inventor" also means
excluded from patent protection: any person who, at the filing date of application, had the right to the
patent. (n)
22.1. Discoveries, scientific theories and mathematical methods;
Section 26. Inventive Step. - An invention involves an inventive step
22.2. Schemes, rules and methods of performing mental acts, if, having regard to prior art, it is not obvious to a person skilled in
playing games or doing business, and programs for computers; the art at the time of the filing date or priority date of the
application claiming the invention. (n)
22.3. Methods for treatment of the human or animal body by
surgery or therapy and diagnostic methods practiced on the human Section 27. Industrial Applicability. - An invention that can be
or animal body. This provision shall not apply to products and produced and used in any industry shall be industrially applicable.
composition for use in any of these methods; (n)

22.4. Plant varieties or animal breeds or essentially biological CHAPTER III

process for the production of plants or animals. This provision shall RIGHT TO A PATENT
not apply to micro-organisms and non-biological and microbiological
processes. Section 28. Right to a Patent. - The right to a patent belongs to the
inventor, his heirs, or assigns. When two (2) or more persons have
Provisions under this subsection shall not preclude Congress to jointly made an invention, the right to a patent shall belong to them
consider the enactment of a law providing sui generis protection of jointly. (Sec. 10, R.A. No. 165a)
plant varieties and animal breeds and a system of community
intellectual rights protection: Section 29. First to File Rule. - If two (2) or more persons have made
the invention separately and independently of each other, the right
to the patent shall belong to the person who filed an application for sufficiently clear and complete for it to be carried out by a person
such invention, or where two or more applications are filed for the skilled in the art. Where the application concerns a microbiological
same invention, to the applicant who has the earliest filing date or, process or the product thereof and involves the use of a micro-
the earliest priority date. (3rd sentence, Sec. 10, R.A. No. 165a.) organism which cannot be sufficiently disclosed in the application in
such a way as to enable the invention to be carried out by a person
Section 30. Inventions Created Pursuant to a Commission. - 30.1. skilled in the art, and such material is not available to the public, the
The person who commissions the work shall own the patent, unless application shall be supplemented by a deposit of such material with
otherwise provided in the contract. an international depository institution.

30.2. In case the employee made the invention in the course of his 35.2. Description. - The Regulations shall prescribe the contents of
employment contract, the patent shall belong to: the description and the order of presentation. (Sec. 14, R.A. No.
165a)
(a) The employee, if the inventive activity is not a part of his
regular duties even if the employee uses the time, facilities and Section 36. The Claims. - 36.1. The application shall contain one (1)
materials of the employer. or more claims which shall define the matter for which protection is
sought. Each claim shall be clear and concise, and shall be supported
(b) The employer, if the invention is the result of the by the description.
performance of his regularly-assigned duties, unless there is an
agreement, express or implied, to the contrary. (n) 36.2. The Regulations shall prescribe the manner of the presentation
of claims. (n)
Section 31. Right of Priority. . - An application for patent filed by any
person who has previously applied for the same invention in another Section 37. The Abstract. - The abstract shall consist of a concise
country which by treaty, convention, or law affords similar privileges summary of the disclosure of the invention as contained in the
to Filipino citizens, shall be considered as filed as of the date of filing description, claims and drawings in preferably not more than one
the foreign application: Provided, That: (a) the local application hundred fifty (150) words. It must be drafted in a way which allows
expressly claims priority; (b) it is filed within twelve (12) months the clear understanding of the technical problem, the gist of the
from the date the earliest foreign application was filed; and (c) a solution of that problem through the invention, and the principal
certified copy of the foreign application together with an English use or uses of the invention. The abstract shall merely serve for
translation is filed within six (6) months from the date of filing in the technical information. (n)
Philippines. (Sec. 15, R.A. No. 165a)
Section 38. Unity of Invention. - 38.1. The application shall relate to
CHAPTER IV one invention only or to a group of inventions forming a single
PATENT APPLICATION general inventive concept.

Section 32. The Application. - 32.1. The patent application shall be in 38.2. If several independent inventions which do not form a single
Filipino or English and shall contain the following: general inventive concept are claimed in one application, the
Director may require that the application be restricted to a single
(a) A request for the grant of a patent; invention. A later application filed for an invention divided out shall
be considered as having been filed on the same day as the first
(b) A description of the invention; application: Provided, That the later application is filed within four
(4) months after the requirement to divide becomes final or within
(c) Drawings necessary for the understanding of the such additional time, not exceeding four (4) months, as may be
invention; granted: Provided further, That each divisional application shall not
go beyond the disclosure in the initial application.
(d) One or more claims; and
38.3. The fact that a patent has been granted on an application that
(e) An abstract. did not comply with the requirement of unity of invention shall not
be a ground to cancel the patent. (Sec. 17, R.A. No. 165a)
32.2. No patent may be granted unless the application identifies the
inventor. If the applicant is not the inventor, the Office may require Section 39. Information Concerning Corresponding Foreign
him to submit said authority. (Sec. 13, R.A. No. 165a) Application for Patents. - The applicant shall, at the request of the
Director, furnish him with the date and number of any application
Section 33. Appointment of Agent or Representative. - An applicant for a patent filed by him abroad, hereafter referred to as the
who is not a resident of the Philippines must appoint and maintain a "foreign application," relating to the same or essentially the same
resident agent or representative in the Philippines upon whom invention as that claimed in the application filed with the Office and
notice or process for judicial or administrative procedure relating to other documents relating to the foreign application. (n)
the application for patent or the patent may be served. (Sec. 11, R.A.
No. 165a)

Section 34. The Request. - The request shall contain a petition for
the grant of the patent, the name and other data of the applicant,
the inventor and the agent and the title of the invention. (n)

Section 35. Disclosure and Description of the Invention. - 35.1.

Disclosure. - The application shall disclose the invention in a manner
CHAPTER XIII
INDUSTRIAL DESIGN 121.5. "Director" means the Director of Trademarks;

Section 112. Definition of Industrial Design. - An industrial design is 121.6. "Regulations" means the Rules of Practice in Trademarks
any composition of lines or colors or any three-dimensional form, and Service Marks formulated by the Director of Trademarks and
whether or not associated-with lines or colors: Provided, That such approved by the Director General; and
composition or form gives a special appearance to and can serve as
pattern for an industrial product or handicraft. (Sec. 55, R.A. No. 121.7. "Examiner" means the trademark examiner. (Sec. 38, R.A.
165a) No. 166a)

Section 113. Substantive Conditions for Protection. - 113.1. Only Section 122. How Marks are Acquired. - The rights in a mark shall be
industrial designs that are new or original shall benefit from acquired through registration made validly in accordance with the
protection under this Act. provisions of this law. (Sec. 2-A, R A. No. 166a)

113.2. Industrial designs dictated essentially by technical or Section 123. Registrability. - 123.1. A mark cannot be registered if it:
functional considerations to obtain a technical result or those that
are contrary to public order, health or morals shall not be protected. (a) Consists of immoral, deceptive or scandalous matter, or
(n) matter which may disparage or falsely suggest a connection with
persons, living or dead, institutions, beliefs, or national symbols, or
Section 114. Contents of the Application. - 114.1. Every application bring them into contempt or disrepute;
for registration of an industrial design shall contain:
(b) Consists of the flag or coat of arms or other insignia of the
(a) A request for registration of the industrial design; Philippines or any of its political subdivisions, or of any foreign
nation, or any simulation thereof;
(b) Information identifying the applicant;
(c) Consists of a name, portrait or signature identifying a
(c) An indication of the kind of article of manufacture or particular living individual except by his written consent, or the
handicraft to which the design shall be applied; name, signature, or portrait of a deceased President of the
Philippines, during the life of his widow, if any, except by written
(d) A representation of the article of manufacture or consent of the widow;
handicraft by way of drawings, photographs or other adequate
graphic representation of the design as applied to the article of (d) Is identical with a registered mark belonging to a different
manufacture or handicraft which clearly and fully discloses those proprietor or a mark with an earlier filing or priority date, in respect
features for which design protection is claimed; and of:

(e) The name and address of the creator, or where the (i) The same goods or services, or
applicant is not the creator, a statement indicating the origin of the
right to the industrial design registration. (ii) Closely related goods or services, or

114.2. The application may be accompanied by a specimen of the (iii) If it nearly resembles such a mark as to be likely to deceive
article embodying the industrial design and shall be subject to the or cause confusion;
payment of the prescribed fee.(n)
(e) Is identical with, or confusingly similar to, or constitutes a
PART III translation of a mark which is considered by the competent
THE LAW ON TRADEMARKS, SERVICE MARKS AND TRADE NAMES authority of the Philippines to be well-known internationally and in
the Philippines, whether or not it is registered here, as being already
Section 121. Definitions. - As used in Part III, the following terms the mark of a person other than the applicant for registration, and
have the following meanings: used for identical or similar goods or services: Provided, That in
determining whether a mark is well-known, account shall be taken
121.1. "Mark" means any visible sign capable of distinguishing of the knowledge of the relevant sector of the public, rather than of
the goods (trademark) or services (service mark) of an enterprise the public at large, including knowledge in the Philippines which has
and shall include a stamped or marked container of goods; (Sec. 38, been obtained as a result of the promotion of the mark;
R.A. No. 166a)
(f) Is identical with, or confusingly similar to, or constitutes a
121.2. "Collective mark" means any visible sign designated as translation of a mark considered well-known in accordance with the
such in the application for registration and capable of distinguishing preceding paragraph, which is registered in the Philippines with
the origin or any other common characteristic, including the quality respect to goods or services which are not similar to those with
of goods or services of different enterprises which use the sign respect to which registration is applied for: Provided, That use of the
under the control of the registered owner of the collective mark; mark in relation to those goods or services would indicate a
(Sec. 40, R.A. No. 166a) connection between those goods or services, and the owner of the
registered mark: Provided further, That the interests of the owner of
121.3. "Trade name" means the name or designation identifying the registered mark are likely to be damaged by such use;
or distinguishing an enterprise; (Sec. 38, R.A. No. 166a)

121.4. "Bureau" means the Bureau of Trademarks;

(g) Is likely to mislead the public, particularly as to the nature,
quality, characteristics or geographical origin of the goods or
services;

(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.

123.2. As regards signs or devices mentioned in paragraphs (j),

(k), and (l), nothing shall prevent the registration of any such sign or
device which has become distinctive in relation to the goods for
which registration is requested as a result of the use that have been
made of it in commerce in the Philippines. The Office may accept as
prima facie evidence that the mark has become distinctive, as used
in connection with the applicant's goods or services in commerce,
proof of substantially exclusive and continuous use thereof by the
applicant in commerce in the Philippines for five (5) years before the
date on which the claim of distinctiveness is made.

123.3. The nature of the goods to which the mark is applied will
not constitute an obstacle to registration. (Sec. 4, R.A. No. 166a)