Article 162p. 162

COMMERCIAL LAWS NEGOTIABLE INSTRUMENTS, CORPORATION, INSURANCE, TRANSPORTATION, BANKING

any product obtained directly or indirectly from such

process.

71.2.Patent owners shall also have the right to assign, or

transfer

by

succession

the patent, and to conclude

licensing contracts for the same. (Sec. 37, R.A. No. 165a)

SECTION 72. Limitations of Patent Rights . — The owner

of a patent has no right to prevent third parties from

performing, without his authorization, the acts referred to

in Section 71 hereof in the following circumstances:

72.1. Using a patented product which has been put on the

market in the Philippines by the owner of the product, or

with his express consent, insofar as such use is performed

after that product has been so put on the said market:

Provided, That, with regard to drugs and medicines, the

limitation on patent rights shall apply after a drug or

medicine has been introduced in the Philippines or

anywhere else in the world by the patent owner, or by any

party authorized to use the invention: Provided, further,

That

the

right

to import the drugs and medicines

contemplated in this section shall be available to any

government agency or any private third party;

72.2.

Where

the

act

is

done

privately

and

on

a

non-commercial scale or for a non-commercial purpose:

Provided, That it does not significantly prejudice the

economic interests of the owner of the patent;

72.3.

Where

the

act

consists

of

making

or

using

exclusively for experimental use of the invention for

scientific purposes or educational purposes and such

other

activities

directly

related

to such scientific or

educational experimental use;

72.4. In the case of drugs and medicines, where the act

includes testing, using, making or selling the invention

including any data related thereto, solely for purposes

reasonably related to the development and submission of

information and issuance of approvals by government

regulatory

agencies

required

under

any

law

of the

Philippines or of another country that regulates the

manufacture, construction, use or sale of any product:

Provided, That, in order to protect the data submitted by

the original patent holder from unfair commercial use

provided

in

Article

39.3

of

the

Agreement

on

Trade-Related Aspects of Intellectual Property Rights

(TRIPS Agreement), the Intellectual Property Office, in

consultation with the appropriate government agencies,

shall

issue

the

appropriate

rules

and

regulations

necessary therein not later than one hundred twenty

(120) days after the enactment of this law;

72.5.

Where

the act consists of the preparation for

individual

cases,

in

a

pharmacy

or

by

a

medical

professional, of a medicine in accordance with a medical

prescription

or

acts

concerning

the

medicine

so

prepared; and

72.6 Where the invention is used in any ship, vessel,

aircraft, or land vehicle of any other country entering the

territory of the Philippines temporarily or accidentally:

Provided, That such invention is used exclusively for the

needs of the ship, vessel, aircraft, or land vehicle and not

used for the manufacturing of anything to be sold within

the Philippines. (Secs. 38 and 39, R.A. No. 165a)

(as amended by RA No 9502)

SECTION 73. Prior User . — 73.1. Notwithstanding Section

72 hereof, any prior user, who, in good faith was using the

invention or has undertaken serious preparations to use

the invention in his enterprise or business, before the

filing date or priority date of the application on which a

patent is granted, shall have the right to continue the use

thereof as envisaged in such preparations within the

territory where the patent produces its effect.

73.2. The right of the prior user may only be transferred or

assigned together with his enterprise or business, or with

that part of his enterprise or business in which the use or

preparations for use have been made. (Sec. 40, R.A. No.

165a)

SECTION 74. Use of Invention by Government . — 74.1. A

Government agency or third person authorized by the

Government may exploit the invention even without

agreement of the patent owner where:

(a) The public interest, in particular, national security,

nutrition, health or the development of other sectors, as

determined

by

the

appropriate

agency

of

the

government, so requires; or

(b) A judicial or administrative body has determined that

the manner or exploitation, by the owner of the patent or

his licensee, is anti-competitive; or

(c) In the case of drugs and medicines, there is a national

emergency or other circumstance of extreme urgency

requiring the use of the invention; or

(d) In the case of drugs and medicines, there is public

non-commercial use of the patent by the patentee,

without satisfactory reason; or

(e) In the case of drugs and medicines, the demand for

the patented article in the Philippines is not being met to

an

adequate

extent

and

on

reasonable

terms,

as

determined

by

the Secretary of the Department of

Health.

74.2. Unless otherwise provided herein, the use by the

Government,

or

third

person

authorized

by

the

Government shall be subject, where applicable, to the

following provisions:

(a)

In

situations

of

national

emergency

or

other

circumstances of extreme urgency as provided under

Section 74.1(c), the right holder shall be notified as soon

as reasonably practicable;

(b) In the case of public non-commercial use of the

patent by the patentee, without satisfactory reason, as

provided under Section 74.1 (d), the right holder shall be

informed promptly: Provided, That, the Government or

third person authorized by the Government, without

making a patent search, knows or has demonstrable

ground to know that a valid patent is or will be used by or

for the Government;

(c)

If

the

demand

for

the

patented

article

in

the

Philippines is not being met to an adequate extent and

on reasonable terms as provided under Section 74.1 (e),

the right holder shall be informed promptly;

(d) The scope and duration of such use shall be limited to

the purpose for which it was authorized;

(e) Such use shall be non-exclusive;

(f) The right holder shall be paid adequate remuneration

in the circumstances of each case, taking into account

the economic value of the authorization; and

(g) The existence of a national emergency or other

circumstances of extreme urgency, referred to under

Section 74.1 (c), shall be subject to the determination of

the President of the Philippines for the purpose of

determining the need for such use or other exploitation,

which shall be immediately executory.

74.3. All cases arising from the implementation of this

provision shall be cognizable by courts with appropriate

jurisdiction provided by law.

No court, except the Supreme Court of the Philippines,

shall issue any temporary restraining order or preliminary

injunction or such other provisional remedies that will

prevent its immediate execution.

74.4. The Intellectual Property Office (IPO), in consultation

with the appropriate government agencies, shall issue

the appropriate implementing rules and regulations for

the

use

or

exploitation

of

patented

inventions

as

contemplated in this section within one hundred twenty

(120) days after the effectivity of this law.

(as amended by RA No 9502)

SECTION 75. Extent of Protection and Interpretation of

Claims . — 75.1. The extent of protection conferred by the

patent shall be determined by the claims, which are to be

interpreted in the light of the description and drawings.

75.2.

For the purpose of determining the extent of

protection conferred by the patent, due account shall be

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