SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
Senate Bill No. 2300 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
'14 
JUL -7 
1\10 :07 
RESTORING THE PHILIPPINE INVENTORS COMMISSION, DEFINING ITS 
POWERS, FUNCTIONS AND DUTIES, FOR THE ENCOURAGEMENT OF THE 
GENERATION, 
DEVELOPMENT, 
MANUFACTURE, 
PROMOTION 
AND 
MARKETING 
OF 
THE 
PHILIPPINE 
INVENTIONS, 
AND 
FOR OTHER 
PURPOSES 
EXPLANATORY NOTE 
The ingenuity and innovativeness of Filipinos can never be underestimated and 
this was proven by the various awards and recognitions that our inventors, both 
young and old, have received in the international arena. 
Much more can be 
achieved by our scientific luminaries if only the government fully supports them in 
order to maximize their potentials and harness their contributions for our 
economic development. 
Republic Act 3850 was signed into law in 1964 in order to provide technical, 
financial and legal assistance to inventors in the Philippines and create the 
Philippine Inventors Commission. However, it was abolished in 1997 by virtue of 
Executive Order 128 when the government was being reorganized. 
The "Philippine Inventors and Invention Incentives Act of 2014" seeks to restore 
the Philippine Inventors Commission as provided for under Republic Act No. 
3850, as amended. It shall be under the Office of the President with the task of 
giving technical, financial, legal and marketing assistance to Filipino inventors 
and their inventions. Consequently, the functions and funds of the Technology 
Application and Promotion Institute (TAPI) and the Department of Science and 
Technology under Republic Act No. 7459 will be transferred to the Commission, 
including the balance of the Inventions Guarantee Fund (IGF) deposited with the 
Development Bank of the Philippines (DBP). 
To promote Filipino inventions, the Invention Economic Zone or "Invention City" 
which shall be the site of public research laboratory, experimental station and 
manufacturing plants or factories shall be established. 
Also, certain tax 
incentives, tax exemptions and registration fee exemptions shall be granted to 
inventors. This measure was previously filed by Sen. Manny Villar in the 15th 
Congress. The immediate passage of this bill is earnestly sought. 
Senator 


'. 
~l'nllh' 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
{19'h~i'- ~~f ttlk ~1'f'Crt2Jr\l 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 JIIl -7 A10 :07 
SENATE 
Senate Bill No. 
2300 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
RESTORING THE PHILIPPINE INVENTORS COMMISSION, DEFINING ITS 
POWERS, FUNCTIONS AND DUTIES, FOR THE ENCOURAGEMENT OF THE 
GENERATION, 
DEVELOPMENT, 
MANUFACTURE, 
PROMOTION 
AND 
MARKETING OF 
THE 
PHILIPPINE 
INVENTIONS, AND 
FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Philippine Inventors 
2 
and Invention Incentives Act of 2014," 
3 
4 
SEC. 2. Declaration of Policy - It is hereby declared a policy of the State to give 
5 
priority to research and development, invention, innovation, and their utilization. 
6 
The State shall also support indigenous, appropriate, and self-reliant scientific 
7 
and technological capabilities, and their application to the country's productive 
8 
systems and national life. 
9 
10 
The State shall regulate the transfer and promote the adaptation of technology 
11 
from all sources for the national benefit. It shall encourage the widest 
12 
participation of private groups, local governments, and community-based 
13 
organizations in the generation and utilization of science and technology. The 
14 
sustained development of a reservoir of national talents consisting of Filipino 
15 
scientists, entrepreneur, professionals, managers, high-level technical manpower 
16 , and skilled workers and craftsmen in all fields shall be promoted by the State. 
17 
18 
Further, the State shall protect and secure the exclusive rights of scientists, and 
19 
inventors to their intellectual property and creations, particularly when beneficial 
20 
to the people, for such period as may be provided by law. 
21 
22 
Furthermore, the State shall promote the preferential use of Filipino labor, 
23 
domestic materials and locally produced goods, and adopt measures that make 
24 
them competitive. 
25 
26 
27 
SEC. 3. Definition of Terms. - As used in this Act: 
28 
29 
(a) "Innovation (Utility Model)" shall mean any new model of implement or tool 
30 
of any industrial product or part of the same, which does not possess the 
1 


1 
quality of an invention, configuration, construction or composition. 
A 
2 
certificate of registration is issued to a utility model; 
3 
4 
(b) "Industrial Design" is any composition of lines or colors or any three-
S 
dimensional form, whether or not associated with lines or colors; 
6 
Provided, That such composition or form gives a special appearance to 
7 
and can serve as a pattern for industry or handicraft (as defined in RA 
8 
8293 otherwise known as the Intellectual Property Code); 
9 
10 
(c) "Inter-Agency Committee" refers to the following government agencies: 
11 
Department of Science and Technology (DOST), Department of Trade 
12 
and Industry (DTI), National Economic and Development Authority 
13 
(NEDA), Development Bank of the Philippines (DBP), Department of 
14 
Agriculture (DA) that shall consult private agency associations and 
15 
appropriate government agencies in identifying technological research 
16 
priorities in order to guide inventors' research work and enhance the 
17 
economic viability and commercial applicability of their inventions; 
18 
19 
(d) "Filipino Inventors Society" pertains to a single umbrella organization to 
20 
represent the inventors sector, where associations of the Filipino inventors 
21 
may join; 
22 
23 
(e) "Mega Regions" refer to Northern Luzon, Central Luzon, Southern Luzon, 
24 
the Visayas and Mindanao. 
25 
26 
27 
SEC. 4. 
Philippine Inventors Commission. -
The Philippine Inventors 
28 
Commission is hereby restored as provided for under Republic Act No. 3850, as 
29 
amended. The Philippine Inventors Commission, hereinafter referred to as the 
30 
Commission, shall be under the Office of the President of the Republic of the 
31 
Philippines for the purpose of giving technical, financial, legal and marketing 
32 
assistance to Filipino inventors and their inventions. 
33 
34 
35 
SEC. 5. Functions, Duties and Responsibilities. - The Commission shall have 
36 
the following functions, powers and duties: 
37 
38 
(a) To accredit inventors and Filipino Inventors' associations or organizations; 
39 
40 
(b) To take responsibility of the Invention Development Assistance Fund 
41 
(IDAF) which is at least 12% of DOST-TAPI's operational fund; 
42 
43 
(c) To render technical assistance to inventors in the preparation of the 
44 
disclosure, description, abstract, claims, drawings and other documents 
45 
relating to the patent application, under certain terms and conditions; 
46 
47 
(d) To grant financial aid to inventors to enable them to develop, perfect and 
48 
produce their patented inventions or those which are pending patent, 
49 
under certain terms and conditions; 
50 
51 
(e) To render legal assistance to inventors by representing them in filing their 
52 
patent application here and! or abroad, in prosecuting said application until 
53 
grant or final action, and in protecting their patent from infringement in 
54 
patent cases, under certain terms and conditions; 
55 
2 


1 
(f) To facilitate financial assistance from local and intemational lending 
2 
institutions on the development of inventions that are beneficial to our 
3 
country for long term loans; 
4 
5 
(g) To enable inventors to manufacture their inventions, with only their letters 
6 
patent as collateral, the amount of loan to be granted will depend upon the 
7 
importance and commercial viability of their inventions as determined by 
8 
the Commission; 
9 
10 
(h) To develop and establish import and export assistance programs and help 
11 
inventors find markets for their inventions here and abroad; 
12 
13 
(i) To encourage Filipino inventors to promote their inventions by holding 
14 
periodic contests, conventions, citations and 
awards to patented 
15 
inventions, utility models, industrial designs, and creative research in the 
16 
Philippines and abroad in various fields including but not limited to the 
17 
following: agriculture, chemistry, commerce, communications, education, 
18 
environment, engineering, fishery, food, science and technology, forestry, 
19 
medicine, national defense, pharmacy, physics, public safety and welfare, 
20 
public works, transportation and other fields of science. 
This shall be 
21 
open to all Filipino inventors who may submit entries in one or more fields; 
22 
23 
U) To provide assistance to inventors, technologists and researchers in 
24 
availing laboratories and other facilities of the Research and Development 
25 
Institutes (RDI's), including regional offices and instrumentalities of the 
26 
Department of Science and Technology and other government agencies; 
27 
Provided, that the recipient of the assistance agrees to give the 
28 
Commission at least one tenth (1/10) of all royalties arising from the 
29 
technology or inventions depending on the extent of facility or services 
30 
utilize to help maintain the research laboratory. 
The determination of 
31 
royalty shall be on the existing international standards. In case there is no 
32 
royalty arrangement in the commercialization and I or production and 
33 
market of the assisted ideas, products and processes, the inventor or 
34 
researcher shall give the commission at least five percent (5%) of the net 
35 
income derived therefrom. Proceeds from all kinds of assistance rendered 
36 
by the Commission shall accrue to its account and shall be used to 
37 . 
carryout its objectives and mandate; 
38 
39 
(k) To assist inventors, scientists, technologists and the researchers in joining 
40 
national and international invention competitions duly recognized by the 
41 
Commission, including market development here and abroad; 
42 
43 
(I) To exercise arbitration power, when necessary, organize an Arbitration 
44 
Board to help settle or arbitrate or encourage extra judicial settlement of 
45 
conflict problem and the like besetting between and among inventors 
46 
organization in order to foster unity, harmony and camaraderie among 
47 
themselves. An Arbitration Board shall be presided over the Commission 
48 
with at least three (3) members invited from disinterested organizations of 
49 
veritable and respectable reputation, and one from the Filipino Inventors 
50 
Society; 
51 
52 
(m)To publish and disseminate information about inventions, and other 
53 
related information; 
54 
55 
(n) To hold regular monthly dialogues for the exchange of ideas among 
56 
inventors; and, 
57 
3 


1 
(0) To help organize in coordination with other government agencies creative 
2 
societies in schools, colleges and universities to promote and encourage 
3 
inventiveness among our youth and citizenry. 
4 
5 
6 
SEC. 6. Organization. - The Commission shall be composed of a Chairperson 
7 
and five (5) commissioners representing the five (5) mega regions appointed by 
8 
the President of the Philippines. Each shall be a natural born Filipino citizen and 
9 
at least thirty-five (35) years of age, an inventor with at least one invention letter 
10 
patent, with no final conviction by a court of an offense involving moral turpitude, 
11 
a degree holder, preferably with M.S. or MBA and a member of the Filipino 
12 
Inventors' umbrella organization. They shall exercise collective decision-making 
13 
as the highest policymaking body of the Commission. 
The Board of 
14 
Commissioners shall promulgate and implement rules and regulations necessary 
15 
to perform the functions of the Commission to carry out the provisions of this Act. 
16 
17 
The Commission shall have the following standing departments: Intellectual 
18 
Property 
and 
Legal 
Department, 
Finance 
Department, 
Administrative 
19 
Department, Research and Development Department, Project Development and 
20 
Business Consultancy Department, Record and Information. The Commission, 
21 
with the approval of the President, may create additional units deemed 
22 . necessary by the Board of Commissioners. 
23 
24 
25 
SEC. 7. 
Inter-Agency Committee. -
The Commission shall, within three (3) 
26 
months of the effectivity of this law, constitute an Inter-Agency Committee whose 
27 
function is to guide the inventors' research work and enhance the economic 
28 
viability of their inventions. The findings of the Committee shall serve as the 
29 
basis for the issuance of certifications required from the Commission for 
30 
inventors to avail of the Invention Guarantee Fund. This is in addition to the 
31 
reqUirements prescribed by the Development Bank of the Philippines (DBP). 
32 
33 
SEC. 8. Invention Economic Zone. - The Commission, with the approval of the 
34 
President, may select a suitable location on any public land owned by the 
35 
National Government for the site of its public research laboratory, experimental 
36 
station and manufacturing plants I factories or branch thereof with housing 
37 
facilities for the inventors and researchers working therein to be known as 
38 
Invention City and I or Invention Economic Zone. Within three months from 
39 
receipt of the choice of the Commission duly approved, the Director of Lands 
40 
shall cause the chosen sites to be surveyed, delimited and transferred to the 
41 
Commission to be under its exclusive jurisdiction and control. 
42 
43 
44 
SEC. 9. Transfer of Functions and Funds to the Commission. - All functions, 
45 
duties and responsibilities referring to the promotion and development of 
46 
inventions conferred upon the Technology Application and Promotion Institute 
47 
and I or Department of Science and Technology under Republic Act No. 7459 
48 
are hereby transferred to the Commission which shall hereafter exercise those 
49 
functions. All real and personal properties, moneys, assets, bequests, devices 
50 
and the like accumulated in the exercise of those functions in implementing the 
51 
said Act shall also be transferred to the Commission; Provided, That the research 
52 
and development (R & D) fund under Section 7 of R.A. 7459, the Invention 
53 
Development Assistance Fund, shall be increased and provided under the 
54' General Appropriatiol1s Act in the initial amount of One Hundred Fifty Million 
55 
Pesos (Php 150,000,000:00). The TAPI shall identify equipment acquired from 
56 
the defunct PIDI and shall donate the same to the Commission, subject to 
57 
acceptable accounting rules and regulations. 
4 


1 
The TAPI shall transfer to the Commission the balance of the Inventions 
2 
Guarantee Fund (IGF) deposited with the DBP. The Commission shall establish 
3 
rules for the availment of the IGF including all the pending loans funded under 
4 
IGF. Uncompleted inventors projects funded under the IDAF shall be transferred 
5 
to the Commission, subject to accounting rules and regulations. 
6 
7 
8 
SEC. 10. 
Tax Exemptions and Incentives. -
To promote, encourage and 
9 
accelerate the development, manufacture and commercialization of Filipino 
10 
inventions or technologies, any income derived from these technologies or 
11 
inventions, shall be exempted from all kinds of taxes for a period of ten (10) 
12 
years effective from the date of the tax exemption approval, subject to the rules 
13 
and regulations of the Department of Finance; Provided, That this tax exemption 
14 
privilege shall be extended to the legal heir or assignee upon the death of the 
15 
inventor. 
16 
17 
The Inventor shall also be entitled to the following tax incentives and tax 
18 
exemptions: 
19 
20 
(a) Exemption from the payment of customs duties and value added tax on 
21 
import of machinery! equipment, parts and 
materials and 
other 
22 
components which shall be actually, directly and exclusively used for the 
23 
manufacture of the patented inventions and registry utility models. The 
24 
Commission, in coordination with the Department of Finance, Bureau of 
25 
Internal Revenue, and the Bureau of Customs, shall determine the ceiling 
26 
on tax incentives and import duty privileges; 
27 
28 
(b) Exemption from the payment of license fees, permit fees and other 
29 
business taxes from the machinery and equipment used for the 
30 
development, manufacture and sale of their patented inventions, as an 
31 
exemption to the taxing power of the local government units. 
32 
33 
34 
SEC. 11. 
Free Patent Registration. -
Inventors shall be exempted from the 
35 
payment of any registration fees for their inventions, utility models and industrial 
36 
designs required by the Intellectual Property Philippines (IPP). The IPP and the 
37 
Commission shall establish the rules and requirements for the implementation of 
38 
the provision of this section to avoid violation of existing International 
39 
Agreements and! or rules. 
40 
41 
42 
SEC. 12. All donations and grants to the Commission shall be tax-exempt and 
43 
deductible in full from the donor's gross income tax returns when evidenced by a 
44 
certificate duly issued by the Commission. Any person who evades or defeats, 
45 
or attempts to evade or defeat in any manner any tax imposed by law by availing 
46 
himself of the provisions of this section through fraud or misrepresentation shall 
47 
be punished by a fine of not more than Fifty Thousand pesos (Php 50,000.00) or 
48 
imprisonment of not exceeding one (1) year or both, in the discretion of the court. 
49 
In case the violator is a corporation or association, the president or general 
50 
manager thereof shall be criminally liable, without prejudice to the criminal 
51 
responsibility of the member, officer or employee thereof committing such 
52 
violation. 
53 
54 
55 
SEC. 13. The Board of Commissioners shall be constituted by the President 
56 
within three (3) months from the approval of this Act to formulate the 
57 
implementing rules and regulations, and organize the Commission. 
5 


1 
SEC. 14. 
Appropriations. -
There is hereby appropriated the sum of One 
2 
Hundred Fifty Million pesos (Php 150,000,000.00) to fund the initial year of the 
3 
Commission's operation. Thereafter, the amount necessary to effectively carry 
4 
out the provisions of this Act shall be included in the Annual General 
5 
Appropriations Act. 
6 
7 
8 
SEC. 15. Separability Clause. - If any provision of this Act shall at any time be 
9 
found to be unconstitutional or invalid, the remainder thereof not affected by such 
10 
declaration shall remain in full force and effect. 
11 
12 
13 
SEC. 16. Repealing Clause. - All laws, decrees, rules or regulations inconsistent 
14 
with the provisions of this Act are hereby repealed or modified accordingly. 
15 
16 
17 
SEC. 17. Effectivity Clause. - This Act shall take effect after fifteen (15) days 
18 
following its complete publication in two (2) newspapers of general circulation. 
19 
20 
21 
22 
23 
24 
Approved, 
6