Republic of the Philippines

CAVITE STATE UNIVERSITY

Bacoor City Campus

DEPARTMENT OF MANAGEMENT STUDIES

BS BUSINESS MANAGEMENT
BMGT 26: INTERNATIONAL TRADE AND AGREEMENTS
Module 7: Department of Trade and Industry
Preface
This module is designed to help Second year Business Management Students taking
up International Trade and Agreements subject thru online. The material is designed to be
read interactively or after downloading; while the embedded interactive exercises require
internet connectivity, each can also be downloaded for offline work. These exercises are
presented to help you test and apply what you are reading, challenge yourself, prepare
quizzes, and have a little fun along the way.

About the Author

MR. HIEZLL WYNN R. RIVERA, LL.B. – is an Instructor I
of Cavite State University – Bacoor Campus. He graduated
from San Beda University (formerly San Beda College –
Mendiola, Manila), with a degree of Bachelor of Science in
Legal Management. He took his Law Degree at Philippine
Christian University. He also garnered 2nd place in Senior
Career Testing in Logic and Abstract Reasoning with a
percentage of 98% during his college days in San Beda
University, way back 2011. He is a former member of
Philippine Christian University Law School Organization and
a former member of Philippine Christian University
Academics Committee. He is also teaching Obligation and
Contracts; and International Trade Law in CvSU – Bacoor
Campus.
Objectives:
After successfully completing this module, you should be able to understand the
framework, purpose and function of Department of Trade and Industry.

Pre-Test
Write Wynn if the statement is correct and Hiezll if incorrect.
1. The Department of Trade and Industry is the Legislative department of the Philippine
government tasked as the main economic catalyst that enables innovative,
competitive, job generating, inclusive business, and empowers consumers.
2. The Department of Trade and Industry (DTI) is a prime mover of consumer welfare.
3. The department is headed by a Manager.
4. The DTI can be abolished by the President.
5. The DTI is in charge of Philippine trade, both foreign and domestic.

Answer Key
1. Hiezll
2. Wynn
3. Hiezll
4. Wynn
5. Wynn

Registration Act No. 3883

Underlying intricacies and nuances of Business Name Registration Act No. 3883 (1931) is vital
to the overall business registration process. The abovementioned law substantially provides that
it is unlawful for any person to use or sign on any business document using a business name
without first registering the business name in the Bureau of Commerce (now Department of
Trade and Industry).The Department of Trade and Industry (DTI) is the Department primarily
concerned in the Business Registration process in the Philippines.

Act No. 3883 (1931) substantially provides that it is unlawful for any person to use or sign on
any business document using a business name without first registering the business name in
the Department of Trade and Industry (former Bureau of Commerce).The Department of Trade
and Industry (DTI) is the Department primarily concerned in the Business Registration process
in the Philippines. The first step of the registration process is Business Name Registration that
as the above law provides delegated to the DTI.

Legal Background

Intellectual Property Code of the Philippines defined “Business Name” or “Trade Name” as
name or designation identifying or distinguishing an enterprise. Sec. 38 of Republic Act No. 166
further provides that:

The term "trade-name" includes individual names and surnames, firm names, trade-
names, devices or words used by manufacturers, industrialists, merchants, agriculturists, and
others to identify their business, vocations or occupations; the names or titles lawfully adopted
and used by natural or juridical persons, unions, and any manufacturing, industrial, commercial,
 agricultural or other organizations engaged in trade or commerce .

A fundamental reason why we should get a business name or trade name before
operating a business is because it is the law and the law is meant to govern us into order.
Republic Act No. 3883 or the Business Name Law confers the primary responsibility to the
Department of Trade and Industry (DTI) to govern Business Name Registration in the
Philippines. Sec. 1 of the law provides that:

It shall be unlawful for any person to use or sign, on any written or printed receipt,
including receipt for tax on business, or on any written or printed contract not verified by a Notary
Public, or on any written or printed evidence of any agreement or business transactions, any
name used in connection with his business other than his true name, or keep conspicuously
exhibited in plain view in or at the place where his business is concluded, if he is engaged in a
business, any sign announcing a firm name or business name or style, without first registering
such other name, or such firm name, or business name, or style, in the Bureau of Commerce
(now Department of Trade and Industry) together with his true name and that of any other person
having a joint or common interest with him in such contract, agreement, business transaction, or
business. (As amended by Act No. 4147.)

The law on Business Name registration aims to organize business activity and prevent
conflict in business transactions due to confusion regarding trade names. Furthermore, the law
confers an intellectual property right to the owner and protects it. Sec 147.1 of the intellectual
Property Code of the Philippines provides that:

The owner of a registered mark shall have the exclusive right to prevent all third parties
not having the owner's consent from using in the course of trade identical or similar signs or
containers for goods or services which are identical or similar to those in respect of which the
trademark is registered where such use would result in a likelihood of confusion. In case of the
use of an identical sign for identical goods or services, a likelihood of confusion shall be
presumed.

In situations where there is a conflict the law further provides a remedy and resolution.
But first it needs to identify grounds of infringement. R.A. No. 8293 Sec. 155 provides that:

Any person who shall, without the consent of the owner of the registered mark:

155.1. Use in commerce any reproduction, counterfeit, copy, or colorable imitation of a

registered mark or the same container or a dominant feature thereof in connection with the sale,
offering for sale, distribution, advertising of any goods or services including other preparatory
steps necessary to carry out the sale of any goods or services on or in connection with which
such use is likely to cause confusion, or to cause mistake, or to deceive; or

155.2. Reproduce, counterfeit, copy or colorably imitate a registered mark or a dominant

feature thereof and apply such reproduction, counterfeit, copy or colorable imitation to labels,
signs, prints, packages, wrappers, receptacles or advertisements intended to be used in
commerce upon or in connection with the sale, offering for sale, distribution, or advertising of
goods or services on or in connection with which such use is likely to cause confusion, or to
cause mistake, or to deceive, shall be liable in a civil action for infringement by the registrant for
the remedies hereinafter set forth: Provided, That the infringement takes place at the moment
any of the acts stated in Subsection 155.1 or this subsection are committed regardless of
whether there is actual sale of goods or services using the infringing material. (Sec. 22, R.A. No
166a)

If an actual breach is made, R.A. No. 8293 otherwise known as the Intellectual Property Right of
the Philippines further provides in Sec. 156:

156.1. The owner of a registered mark may recover damages from any person who
infringes his rights, and the measure of the damages suffered shall be either the reasonable profit
 which the complaining party would have made, had the defendant not infringed his rights, or the
profit which the defendant actually made out of the infringement, or in the event such measure of
damages cannot be readily ascertained with reasonable certainty, then the court may award as
damages a reasonable percentage based upon the amount of gross sales of the defendant or the
value of the services in connection with which the mark or trade name was used in the
infringement of the rights of the complaining party. (Sec. 23, first par., R.A. No. 166a)

156.2. On application of the complainant, the court may impound during the pendency of
the action, sales invoices and other documents evidencing sales.

156.3. In cases where actual intent to mislead the public or to defraud the complainant is
shown, in the discretion of the court, the damages may be doubled. (Sec. 23, first par., R.A. No.
166)

156.4. The complainant, upon proper showing, may also be granted injunction. (Sec. 23,
second par., R.A. No. 166a)

Looking at these documents for legal basis we can now establish an argument of how important
Business Name Registration. The law protects and tries to eliminate impediments to a good
business environment. In the discussions to follow we will look into the actual process of
Business Name registration and the Implementing Rules and Regulations (IRR) adopted by the
DTI.

Department of Trade and Industry

The Department of Trade and Industry is the executive

department of the Philippine government tasked as the main
economic catalyst that enables innovative, competitive, job
generating, inclusive business, and empowers consumers. It
acts as catalyst for intensified private sector activity in order
to
Accelerate and sustain economic growth through
comprehensive industrial growth strategy, progressive and
socially responsible trade liberalization and deregulation
programs and policymaking designed for the expansion and
diversification of Philippine trade – both domestic and foreign.

The Department of Trade and Industry (DTI) is a prime mover of consumer welfare. It is
committed to protecting the rights and interests of the consumers and is also committed to
developing policies and programs aimed at sustaining the growth and development of the
Philippine economy. Besides overseeing the effective implementation and enforcement of
trade regulation and fair trade laws, the DTI provides protection to consumers through
consumer education and information dissemination programs.

Department Order No. 19-18, s. 2019, laid out the organizational structure of the Department
into the following functional groups: Competitiveness and Innovation Group (CIG); Consumer
Protection Group (CPG); Industry Development and Trade Policy Group (IDTPG);
Management Services Group (MSG); Regional Operations Group (ROG); and the Trade
Promotions Group (TPG).
Its hierarchical organization include 27 foreign trade service posts, 17 regional offices
(including Negros Island Region), 87 provincial/city/area offices, 12 bureaus, 4 attached
agencies, 7 attached corporations, and 8 services offices.

The department is headed by a Secretary (equivalent to Minister) and assisted by

Undersecretaries (equivalent to Deputy Minister) which take charge of certain sub-
department each, and Assistant Secretaries which serve as specialized assistants of the
Secretary.

Post- test
Write false if the statement is correct and give the correct answer if the statement is incorrect.
1. Department Order No. 19-18, s. 2019, laid out the organizational structure of the DTI.
2. The DTI is headed by a Manager.
3. Undersecretaries is equivalent to Deputy Minister
4. The Department of Trade and Industry is the Legislative department of the Philippine
government tasked as the main economic catalyst that enables innovative, competitive,
job generating, inclusive business, and empowers consumers. 5. Its hierarchical
organization includes 27 foreign trade service posts.

Answer key
1. False
2. Secretary
3. False
4. Executive
5. False