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Philippines Corporation v. Pennswell, Inc., G.R. No. 172835, Dec. 13, 2007)

This document defines key terms related to intellectual property laws, including copyright, trademarks, patents, trade secrets, and technology transfer agreements. It discusses what types of creations and inventions can be protected by intellectual property laws and the requirements for patentability, including novelty, inventive step, and industrial applicability. The document also outlines who is entitled to intellectual property protections, such as inventors, employers of inventors, and the first person to file a patent application.

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0% found this document useful (0 votes)
229 views

Philippines Corporation v. Pennswell, Inc., G.R. No. 172835, Dec. 13, 2007)

This document defines key terms related to intellectual property laws, including copyright, trademarks, patents, trade secrets, and technology transfer agreements. It discusses what types of creations and inventions can be protected by intellectual property laws and the requirements for patentability, including novelty, inventive step, and industrial applicability. The document also outlines who is entitled to intellectual property protections, such as inventors, employers of inventors, and the first person to file a patent application.

Uploaded by

daydreamer5256
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 9

INTELLECTUAL PROPERTY LAWS

What are covered


property rights?

by

intellectual

What is undisclosed information?

1. Copyright and Related Rights;


2. Mark (trade, service and collective);
3. Geographic indications;
4. Industrial designs;
5. Patents;
6. Layout designs (Topographies) of
Integrated Circuits;
7. Protection of Undisclosed Information.
(Sec. 4.1, Intellectual Property Code [IPC])
What are the distinctions among
trademark, patent and copyright?
INTELLECTUAL
PROPERTIES
Trademark

Tradename

Copyright

Patentable
Inventions

What
is
a
arrangement?

DEFINITION
Any
visible
sign
capable
of
distinguishing
the
goods (trademark) or
services
(service
mark) of an enterprise
and shall include a
stamped or marked
container of goods.
The
name
or
designation identifying
or distinguishing an
enterprise.
Literary and artistic
works
which
are
original
intellectual
creations
in
the
literary and artistic
domain
protected
from the moment of
their creation.
Any technical solution
of a problem in any
field of human activity
which is new, involves
an inventive step and
is
industrially
applicable. (Kho v. CA,
G.R. No. 115758, Mar.
11, 2002).

technology

except computer software developed for


mass market. (Sec. 4.2, IPC)

transfer

Contracts or arrangements involving the


transfer of systematic knowledge for the
manufacture of a product, the application
of the process, or rendering a service
including management contracts, and
transfer, assignment or licensing of all
forms of intellectual property rights,
including licensing of computer software

It is an information which:
1. Is a secret in the sense that it is not,
as a body or in precise configuration
and assembly of components,
generally known among, or readily
accessible to persons within the
circles that normally deal with the
kind of information in question;
2. Has commercial value because it is a
secret;
3. Has been subjected to reasonable
steps under the circumstances, by
the person lawfully in control of the
information, to keep it a secret.
(Article 39, TRIPS Agreement)
What is the nature of undisclosed
information/trade secret?
Those trade secrets are of a privileged
nature. The protection of industrial
property encourages investments in new
ideas and inventions and stimulates
creative efforts for the satisfaction of
human needs. It speeds up transfer of
technology
and
industrialization,
and
thereby bring about social and economic
progress.
Verily, the protection of
industrial secrets is inextricably linked to
the advancement of our economy and
fosters healthy competition in trade. (Air
Philippines Corporation v. Pennswell, Inc.,
G.R. No. 172835, Dec. 13, 2007)
What is a patent?
A statutory grant which confers to an
inventor or his legal successor, in return for
the disclosure of the invention to the
public, the right for a limited period of time
to exclude others from making, using,
selling or importing the invention within the
territory of the country that grants the
patent.
What are the patentable inventions?
Any technical solution of a problem in any
field of human activity which is new,
involves an inventive step and is
industrially applicable. It may be, or may
relate to, a product, or process, or an
improvement of any of the foregoing. (Sec.
21)

What
are
patentability?

the

conditions

for

1. Novelty An invention shall not be


considered new if it forms part of a
prior art. (Sec. 23, IPC);
2. Involves an inventive step if, having
regard to prior art, it is not obvious to
a person skilled in the art at the time
of the filing date or priority date of
the application claiming the invention.
3. Industrially Applicable An invention
that can be produced and used in any
industry,
shall
be
industrially
applicable (Sec. 27, IPC).
What is prior art?
1.

Everything which has been made


available to the public anywhere in the
world, before the filing date or the
priority date of the application claiming
the invention;

2. The whole contents of a published


application, filed or effective in the
Philippines, with a filing or priority date
that is earlier than the filing or priority
date of the application.
Provided, that the application which
has validly claimed the filing date of an
earlier application under Section 31 of
the IPC, there shall be a prior art with
effect as of the filing date of such earlier
application: Provided further, that the
applicant or the inventor identified in
both applications are not one and the
same. (Sec. 24, IPC)
What is meant by made available to
the public and what are its effects?
To be made available to the public means
at least one member of the public has been
able to access knowledge of the invention
without any restriction on passing that
knowledge on to others.
XPN: Nonprejudicial disclosure the
disclosure of information contained in
the application during the 12month
period before the filing date or the
priority date of the application if such
disclosure was made by:
1. The inventor;
2. A patent office and
information was contained:

the

a. In another application filed


by the inventor and should
have not have been disclosed
by the office, or
b. In an application filed
without the knowledge or
consent of the inventor by a
third party which obtained
the information directly or
indirectly from the inventor;
3. A third party which obtained the
information directly or indirectly from
the inventor. (Sec. 25, IPC)
Who has the burden of proving want of
novelty of an invention?
The burden of proving want of novelty is on
him who avers it and the burden is a heavy
one which is met only by clear and
satisfactory proof which overcomes every
reasonable doubt. (Manzano v. CA, G.R.
No. 113388. Sept. 5, 1997)
What is inventive step?
GR: An invention involves an inventive
step if, having regard to prior art, it is
not obvious to a person skilled in the
art at the time of the filing date or
priority date of the application claiming
the invention. (Sec. 26, IPC)
XPN: In the case of drugs and medicines,
there is no inventive step if the
invention results from the mere
discovery of a new form or new
property of a known substance which
does not result in the enhancement of
the known efficacy of that substance.
(Sec. 26.2, as amended by R.A. 9502)
What is the test of nonobviousness?
If any person possessing ordinary skill in
the art was able to draw the inferences and
he constructs that the supposed inventor
drew from prior art, then the latter did not
really invent.
Who is considered a person of ordinary
skill?
A person who is presumed to:
1. Be an ordinary practitioner aware of
what
was
common
general
knowledge in the art at the relevant
date;
2. Have knowledge of all references
that are sufficiently related to one
another and to the pertinent art and

to have knowledge of all arts


reasonably pertinent to the particular
problems with which the inventor
was involved;
3. Have had at his disposal the normal
means and capacity for routine work
and experimentation. (Rules and
Regulations on Inventions, Rule
207)
What is utility model?
Utility model A name given to inventions
in the mechanical field .
When does an invention qualify as a
utility model?
If it is new and industrially applicable. A
model of implement or tools of any
industrial product even if not possessed of
the quality of invention but which is of
practical utility. (Sec. 109.1, IPC)
What is the term of a utility model?
7 years from date of filing of the
application (Sec. 109.3, IPC).
What are not patentable inventions?
1. Discoveries, scientific theories and
mathematical methods;
2. In the case of Drugs and medicines,
mere discovery of a new form or new
property of a known substance which
does not result in the enhancement of
the efficacy of that substance;
3. Schemes, rules and methods of
performing mental acts, playing games
or doing business, and programs for
computers;
4. Methods for treatment of the human or
Animal body;
5. Plant varieties or animal breeds or
essentially biological process for the
production of plants or animals. This
provision shall not apply to micro
organisms
and
nonbiological
and
microbiological processes;
6. Aesthetic creations;
7. Anything which is Contrary to public
order or morality. (Sec. 22, IPC as
amended by R.A. 9502)
Are computer programs patentable?
GR:
Computer
programs
are
not
patentable but are copyrightable.
XPN: They can be patentable if they are
part of a process (e.g. business
process with a step involving the use
of a computer program).
Who is entitled to a patent?
1.
Inventor, his heirs, or assigns;
2. Joint invention Jointly by
inventors. (Sec. 28, IPC);

the

3. 2 or more persons invented separately


and independently of each other To
the person who filed an application;
4. 2 or more applications are filed the
applicant who has the earliest filing
date or, the earliest priority date. First
to file rule. (Sec. 29, IPC)
5. Inventions created pursuant to a
commission Person who commissions
the work, unless otherwise provided in
the contract. (Sec. 30.1, IPC);
6. Employee made the invention in the
course of his employment contract:
a. The employee, if the inventive
activity is not a part of his regular
duties even if the employee uses
the time, facilities and materials of
the employer;
b. The employer, if the invention is the
result of the performance of his
regularlyassigned duties, unless
there is an agreement, express or
implied, to the contrary. (Sec. 30.2,
IPC)
What is the first to file rule?
1. 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
such invention, or
2. Where two or more applications are
filed for the same invention, to the
applicant which has the earliest filing
date. (Sec. 29, IPC)
What is priority date?
An application for patent filed by any
person who has previously applied for the
same invention in another country which
by treaty, convention, or law affords similar
privileges to Filipino citizens, shall be
considered as filed as of the date of filing
the foreign application. (Sec. 31, IPC)
What are the conditions in availing of
priority date?
1. The local application expressly claims
priority;
2. It is filed within 12 months from the
date the earliest foreign application was
filed; and
3. A certified copy of the foreign application
together with an English translation is
filed within 6 months from the date of
filing in the Philippines. (Sec. 31, IPC).
When shall the patent take effect?
A patent shall take effect on the date of the
publication of the grant of the patent in the
IPO Gazette. (Sec. 50.3, IPC)

What is the duration of a patent, utility


model and industrial design?
1. Patent 20 years from date of filing of
application without renewal. (Sec. 54,
IPC);
2. Utility Model 7 years from the filing
date of the application without renewal.
(Sec. 109.3, IPC)
3. Industrial Design 5 years from the
filing date of the application, renewable
for not more than two (2) consecutive
periods of five (5) years each. (Sec.
118.2, IPC)
What
are
the
tests
in
patent
infringement?
1. Literal infringement Test Resort
must be had, in the first instance, to
words of the claim. If the accused
matter clearly falls within the claim,
infringement is committed.
Minor
modifications are sufficient to put the
item
beyond
literal
infringement.
(Godines v. CA, G.R. No. L 97343,
Sept. 13, 1993)
2. Doctrine of Equivalents There is
infringement
where
a
device
appropriates a prior invention by
incorporating its innovative concept and,
although with some modification and
change, performs substantially the same
function in substantially the same way to
achieve substantially the same result.
(Ibid.)
Does the use of a patented process by
a
third
person
constitute
an
infringement
when
the
alleged
infringer has substituted, in lieu of
some unessential part of the patented
process, a well known mechanical
equivalent.?
Yes, under the doctrine of mechanical
equivalents, the patentee is protected from
colorable invasions of his patent under the
guise of substitution of some part of his
invention by some well known mechanical
equivalent. It is an infringement of the
patent, if the substitute performs the same
function and was well known at the date of
the patent as a proper substitute for the
omitted ingredient. (Gsell v. YapJue, G.R.
No. L4720, Jan. 19, 1909)
What is meant by equivalent device?
It is such as a mechanic of ordinary skill in
construction of similar machinery, having
the forms, specifications and machine
before him, could substitute in the place of
the mechanism described without the
exercise of the inventive faculty.

What are the remedies of the owner of


the patent against infringers?
1. Civil action for infringement The
owner may bring a civil action with the
appropriate Regional Trial Court to
recover from infringer the damages
sustained by the former, plus attorneys
fees and other litigation expenses, and to
secure an injunction for the protection of
his rights.
2. Criminal action for infringement If
the infringement is repeated, the
infringer shall be criminally liable and
upon
conviction,
shall
suffer
imprisonment of not less than six (6)
months but not more than three (3)
years and/or a fine not less than
P100,000.00
but
not
more
than
P300,000.00;
3. Administrative remedy Where the
amount of damages claimed is not less
than P200,000.00, the patentee may
choose to file an administrative action
against the infringer with the Bureau of
Legal Affairs (BLA). The BLA can issue
injunctions, direct infringer to pay
patentee damages, but unlike regular
courts, the BLA may not issue search and
seizure warrants or warrants of arrest.
What are the limitations to the
civil/criminal action?
1. No damages can be recovered for acts of
infringement committed more than four
(4) years before the filing of the action
for infringement. (Sec. 79, IPC);
2. The criminal action prescribes in three
(3) years from the commission of the
crime. (Sec. 84, IPC)
Who
can
file
an
action
for
infringement?
1. The patentee or his successorsin
interest may file an action for
infringement.
(Creser
Precision
Systems, Inc. v. CA, G.R. No. 118708,
Feb. 2, 1998)
2. Any foreign national or juridical entity
who meets the requirements of Sec. 3
and not engaged in business in the
Philippines, to which a patent has been
granted or assigned, whether or not it is
licensed
to
do
business
in
the
Philippines. (Sec. 77, IPC)
What is a trademark and how does it
differ from a trade name?
Any visible sign capable of distinguishing
the goods (trademark) or services (service
mark) of an enterprise.
A trade name is a name or designation
identifying
or
distinguishing
an
enterprise.

TRADEMARK
Goods
or
services offered
by a proprietor
or enterprise are
designated
by
trademark
(goods)
or
service
marks
(services)
Refers
to
the
goods.
Acquired only by
registration.

TRADE NAME
A natural or artificial
person
who
does
business and produces
or performs the goods
or services designated
by
trademark
or
service mark.
Refers to business and
its goodwill.
Need not be registered.

What is a collective mark?


A "collective mark" or collective trade
name" is a mark or tradename used by
the members of a cooperative, an
association or other collective group or
organization. (Sec. 40, R.A. 166)
What is the doctrine of secondary
meaning?
This doctrine is to the effect that a word or
phrase originally incapable of exclusive
appropriation with reference to an article
on the market, because it is geographical
or otherwise descriptive, may nevertheless
be used exclusively by one producer with
reference to his article so long as in that
trade and to that branch of the purchasing
public, the word or phrase has come to
mean that the article was his product. (G.
and C. Merriam Co. v. Saalfield, 198 F.
369, 373, cited in Ang v. Teodoro, G.R. No.
L48226, Dec. 14, 1942)
Is there an infringement of trademark
when two similar goods use the same
words, PALE PILSEN?
No, because pale pilsen are generic
words descriptive of the color (pale) and of
a type of beer (pilsen), which is a light
bohemian beer with strong hops flavor that
originated in the City of Pilsen in
Czechoslovakia. Pilsen is a primarily
geographically descriptive word, hence,
non registrable and not appropriable by
any beer manufacturer (Asia Brewery, Inc.
v. CA, G.R. No. 103543, July 5, 1993).
How are trade names acquired?
Trade names or business names are
acquired through adoption and use.
Registration is not required. (Sec. 165,
IPC)
What marks may not be registered?
1. Consists of immoral, deceptive or
scandalous matter or falsely suggest a

connection with persons, institutions,


beliefs, or national symbols
2. Consists of the flag or coat of arms or
other insignia of the Philippines or any of
its political subdivisions, or of any
foreign nation
3. Consists of a name, portrait or signature
identifying a particular living individual
except by his written consent, or the
name, signature, or portrait of a
deceased President of the Philippines,
during the life of his widow except by
written consent of the widow
4. Identical with a registered mark
belonging to a different proprietor or a
mark with an earlier filing or priority
date, in respect of:
1. The same goods or services, or
2. Closely related goods or services, or
3. If it nearly resembles such a mark as to
be likely to deceive or cause confusion;
4. Is identical with an internationally well
known mark, whether or not it is
registered here, used for identical or
similar goods or services;
5. Is identical with an internationally well
known mark which is registered in the
Philippines with respect to nonsimilar
goods or services. Provided, that the
interests of the owner of the registered
mark are likely to be damaged by such
use;
6. Is likely to mislead the public as to the
nature,
quality,
characteristics
or
geographical origin of the goods or
services
7. Consists exclusively of signs that are
generic for the goods or services that
they seek to identify;
8. Consists exclusively of signs that have
become
customary
or
usual
to
designate the goods or services in
everyday language and established
trade practice;
9. Consists exclusively 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;
11. 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;
12. Consists of color alone, unless defined
by a given form; or
13. Is contrary to public order or morality.
(Sec. 123)
Is the prior use of the mark still a
requirement for registration?
No. Actual prior use in commerce in the
Philippines has been abolished as a

condition for the registration


trademark. (RA 8293)

of

What are the tests in determining


whether
there
is
a
trademark
infringement?
1. Dominancy test Focuses on the
similarity of the prevalent features of the
competing marks. If the competing
trademark contains the main or essential
or dominant features of another, and
confusion is likely to result, infringement
takes place. (Asia Brewery v. CA, G.R. No.
103543, 5 July 1993)
2. Totality or holistic test Confusing
similarity is to be determined on the basis
of visual, aural, connotative comparisons
and overall impressions engendered by the
marks in controversy as they are
encountered in the marketplace.
Note: The dominancy test only
relies
on
visual
comparisons
between two trademarks whereas
the totality or holistic test relies not
only on the visual but also on the
aural and connotative comparisons
and overall impressions between
the two trademarks. (Societe Des
Produits Nestl, S.A. v. CA, G.R. No.
112012, Apr. 4, 2001)
What is the duration of a certificate of
trademark registration?
10 years, renewable for a period of another
10 years.
Each request for renewal must
be made within 6 months before or after
the expiration of the registration.
What are the rights of a registered
mark owner?
1. Protection against reproduction, or
imitation or unauthorized use of the
mark (infringement of mark)
2. To stop entry of imported merchandise
into the country containing a mark
identical or similar to the registered
mark 3. To transfer or license out the
mark.
What is the effect of use of Indications
by third parties for purposes other
than those for which the mark is used?
Registration of the mark shall not confer on
the registered owner the right to preclude
third parties from using bona fide their
names,
addresses,
pseudonyms,
a
geographical name, or exact indications
concerning the kind, quality, quantity,
destination, value, place of origin, or time
of production or of supply, of their goods or
services.

What
are
the
elements
to
be
established
in
trademark
infringement?
1. The validity of the mark
2. The plaintiffs ownership of the mark
3. The use of the mark or its colorable
imitation by the alleged infringer results
in likelihood of confusion. (McDonalds
Corporation v. L.C. Big Mak Burger,
Inc., G.R. No. 143993, Aug 18, 2004)
What is meant by noncompeting
goods?
Those which, though they are not in actual
competition, are so related to each other
that it might reasonably be assumed that
they originate from one manufacturer. Non
competing goods may also be those which,
being
entirely
unrelated,
could
not
reasonably be assumed to have a common
source. In the case of related goods,
confusion of business could arise out of the
use of similar marks; in the latter case of
nonrelated goods, it could not. The vast
majority of courts today follow the modern
theory or concept of "related goods" which
the court has likewise adopted and
uniformly recognized and applied. (Esso
Standard Eastern, Inc. v. CA, G.R. No. L
29971, Aug. 31, 1982)
Is there infringement even if the
goods are noncompeting?
GR: No.
XPN: If it prevents the natural expansion
of his business and, second, by having his
business reputation confused with and put
at the mercy of the second user. (Ang v.
Teodoro, G.R. No. L48226, Dec. 14, 1942)
What distinguishes infringement of
trademark from unfair competition?
INFRINGEMENT
OF TRADEMARK
Unauthorized use
of a trademark.
Fraudulent intent
is unnecessary.
Prior registration
of the trademark
is a prerequisite
to the action

UNFAIR
COMPETITION
The passing off of
ones goods as those
of another.
Fraudulent intent is
essential.
Registration is not
necessary. (Del
Monte Corp. v. CA,
G.R. No. 78325,
Jan. 23, 1990)

What is the right protected under


unfair competition?
A person who has identified in the mind of
the public the goods he manufactures or
deals in, his business or services from

those of others, whether or not a


registered mark is employed, has a
property right in the goodwill of the said
goods, business or services so identified,
which will be protected in the same manner
as other property rights. (Sec. 168.1, IPC)
What is a trade name or business
name?
Any individual name or surname, firm
name,
device
nor
word
used
by
manufacturers, industrialists, merchants,
and others to identify their businesses,
vocations or occupants (Converse rubber
Corp. vs. Universal Rubber Products, GR
No. L27425, L30505, April 28, 1980).
What is copyright?
A right over literary and artistic works
which are original intellectual creations in
the literary and artistic domain protected
from the moment of creation. (Sec. 171.1,
IPC)
What
are
the
elements
of
copyrightability?
1. Originality Must have been created by
the authors own skill, labor, and
judgment without directly copying or
evasively imitating the work of another.
(Ching Kian Chuan v. CA, G.R. No.
130360, Aug. 15, 2001)
2. Expression Must be embodied in a
medium sufficiently permanent or
stable to permit it to be perceived,
reproduced or communicated for a
period more than a transitory duration.
What are the elements of originality?
1. It is independently created by the
author, and
2. It possesses some minimal degree of
creativity
When does copyright vest?
Works are protected from the time of their
creation, irrespective of their mode or form
of expression, as well as of their content,
quality and purpose.
What are copyrightable works?
1. Literary and Artistic Works
2. Derivative Works
a.
Dramatizations,
translations,
adaptations,
abridgements,
arrangements, and other alterations
of literary or artistic works;
b. Collections of literary, scholarly, or
artistic works and compilations of
data and other materials which are
original by reason of the selection or
coordination or arrangement of their
contents. (Sec. 173)

Note: Derivative Works shall be


protected as new works, provided
that such new work shall not affect
the force of any subsisting copyright
upon the original works employed or
any part thereof, or be construed to
imply any right to such use of the
original works, or to secure or
extend copyright in such original
works. (Sec. 173.2, IPC)
P&D was granted a copyright on the
technical drawings of light boxes as
"advertising
display
units".
SMI,
however, manufactured similar or
identical to the light box illustrated in
the technical drawings copyrighted by
P&D for leasing out to different
advertisers. Was this an infringement
of P&Ds copyright over the technical
drawings?
No, P&Ds copyright protection extended
only to the technical drawings and not to
the light box itself. The light box was not a
literary or artistic piece which could be
copyrighted under the copyright law. If SMI
reprinted P&Ds technical drawings for sale
to the public without license from P&D,
then no doubt they would have been guilty
of copyright infringement. Only the
expression of an idea is protected by
copyright, not the idea itself. If what P&D
sought was exclusivity over the light boxes,
it should have instead procured a patent
over the light boxes itself. (Pearl and Dean
Inc. v. Shoe Mart Inc., GR No. 148222,
Aug. 15, 2003)
Who owns copyright?
1. Author Original literary and artistic
works. (Sec. 178.1, IPC)
2. Coauthors Works of joint authorship;
in the absence of agreement, their rights
shall be governed by the rules on co
ownership.
Note: If work of joint authorship
consists of parts that can be used
separately, then the author of each
part shall be the original owner of
the copyright in the part that he
has created. (Sec. 178.2, IPC)
3. In the course of employment, the
copyright shall belong to:
a. The employee, if not a part of his
regular
duties
even
if
the
employee uses the time, facilities
and materials of the employer.
(Sec. 178.3, IPC)
b. The employer, if the work is the
result of the performance of his

regularlyassigned duties, unless


there is an agreement, express or
implied, to the contrary. (ibid.)
4. The person who commissioned the work
shall own the work but the copyright
thereto shall remain with the creator
In
cases
of
work
pursuant
to
commission, unless there is a written
stipulation to the contrary. (Sec. 178.4,
IPC)
5.GR: Producer, the author of the
scenario, the composer of the music,
the film director, and the author of the
work so adapted audiovisual work.
XPN: The producers shall exercise the
copyright to an extent required for the
exhibition of the work in any manner.
(Sec. 178.5, IPC)
6. Writer in respect of letters subject to
the provisions of Article 723, Civil Code.
(Sec. 178.6, IPC)
7.GR:
Publishers

deemed
representatives of the author in case of
anonymous and pseudonymous works.
XPN: When the contrary appears or
where the pseudonym or adopted name
leaves no doubt as to the authors
identity; or author discloses his identity.
8.
In case of collective works
contributor is deemed to have waived
his right unless he expressly reserves
it. (Sec. 196, IPC)
BR and CT are noted artists whose
paintings
are
highly
prized
by
collectors. Dr. DL commissioned them
to paint a mural at the main lobby of
his new hospital for children. Both
agreed to collaborate on the project
for a total fee of two million pesos to
be equally divided between them. It
was also agreed that Dr. DL had to
provide all the materials for the
painting and pay for the wages of
technicians and laborers needed for
the work on the project. Assume that
the project is completed and both BR
and CT are fully paid the amount of
P2M as artists' fee by DL. Under the
law on intellectual property, who will
own the mural? Who will own the
copyright
in
the
mural?
Why?
Explain.
Under Sec. 178.4 of the Intellectual
Property Code, in case of commissioned
work, the creator (in the absence of a
written stipulation to the contrary) owns
the copyright, but the work itself belongs
to the person who commissioned the
creation. Accordingly, the mural belongs to
DL. However, BR and CT own the copyright,

since there is no stipulation to the contrary.


(1995 Bar Question)
What are the other limitations on
copyright?
1. The fair use of a copyrighted work for
criticism, comment, news reporting,
teaching including multiple copies for
classroom use, scholarship, research,
and similar purposes is not an
infringement of copyright. (Sec. 185,
IPC)
Note: Decompilation, which is the
reproduction of the code and
translation of the forms of the
computer program to achieve the
interoperability of an independently
created computer program with
other
programs,
may
also
constitute fair use (e.g. the
software program for Windows 7
will be disassembled by a skilled
programmer in order to understand
much of the structure and operation
of the program).
What is the difference between
copyright
infringement
and
plagiarism?
COPYRIGHT
INFRINGEMENT
The unauthorized
use of copyrighted
material
in
a
manner
that
violates one of the
copyright owners
exclusive
rights,
such as the right
to reproduce or
perform
the
copyrighted work,
or
to
make
derivative
works
that build upon it.
Copyright
infringement is a
very broad term
that describes a
variety of acts. It
may be duplication
of
a
work,
rewriting a piece,
performing
a
written work or
doing
anything
that is normally
considered to be
the exclusive right
of the copyright

PLAGIARISM
The
use
of
anothers
information,
language,
or
writing, when done
without
proper
acknowledgment of
the original source.

Plagiarism
is
specific as it refers
only
to
using
someone
elses
work
without
proper
acknowledgement.

holder.
There
is
no
copyright
infringement
on
public documents.

Public
documents
can be plagiarized
so long as it is not
acknowledged.

1. UP Law Bar Operations Commission


2013. Mercantile Law, 2013. Siklab
2013.
2. Sundiang, SR. and Aquino, Reviewer
on Commercial Law 2013 Edition
3. UST Golden Notes Mercantile Law
Reviewer

Sources:

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