Slxn:I<:NTII CONGIU:SS OF TIlE REPUBLIC ) 
OJlTIII(PIIILII'PINI(S 
) 
First Re~lIlar Sessioll 
) 
'13 
DEC -9 P4 :42 
SI<:NATI~ 
S. B. No. ;2000 
RE('EIVEU_IJY:--f-
Int.-oduced hy Scnatm- Maria Lourdes Nancy S. Binay 
LXPL/\NATORY NOTE 
As a way of lileilitating technology transfer in the Philippines, the Intellectual Property Code 
("II' ('ode") provides mechanisms to encourage the transfer and dissemination oftechnology, 
prevent or control practices and conditions that may in particular cases constitute an abuse of 
intellectual property rights having an adverse effect on competition and trade. For this 
purpose, Section )15 of the Intellectual Property Code requires that all technology transfer 
arrangements shall comply with the provisions of the Code. 
In furtherance of the above objective, Section )17 prohibits the indusion of certain types of 
provisions deemed prima facie to have an adverse effect on C0111pctition and trade. In 
addition, Scction XX also provides j(lr mandatory provisions that should be included in 
voluntary license contracts. 
To en!ill'ce the above provisions, 
Section 92 provided the legal consequence of non-
compliance witir Sections 87-XX, as j(lilows: 
"Section 92. Non-Registration with the Documentation, Information and 
Technology Transkr Bureau. - Technology transfer arrangements that coni()]'Ill 
with tire provisions of Sections 86 and 87 need not be registered with the 
Doclimentation, 
Inf(lI'Illation 
and 
Technology 
Transfer 
Bureau. 
Non-
eonl(>rln!lllce with any of the provisions of Seetiolls P,7 and K8, however, shall 
automatically render the technology transfer arrangement unenforceable, unless 
said technology trallsfer arrangclllCnt is approved and registered with the 
Doeulllcntation, In!(>rlllation ancl Tcchnology Transkr I3ureau under the 
provisiolls of Section 9 I on exceptional cases." 
The term "UI)(.:u!()reeablc" appears to be legally incorrect and inconsistent with the principle 
that acts contrary to law arc void. It entertains the possibility that if the parties violate Section 
X7-X8, they arc given the opportunity to ratify the contract declared by operation of law to be 
illegal. The )lossibility ofratilieation renders nugatory, ifllOt severely weakens, efforts ofthc 
Intcllcctwril'roperty Onice to ensure compliance with Section 87-88. 
III view of the foregoing, the passage of this Bill is earnestly requested. 
NANCY S. B1NAY 
Sella tor 


· . 
SIX'I'I<:II:NTJI CONGRESS OF TIlE REl'UBLIC ) 
OF TilE I'IIILIl'I'INES 
) 
First Re!!.ular Sessiou 
) 
SlcNATE, 
'13 
DEC -9 P 4 :42 
S. H. No. 2000 
Introduced by Senator Maria Lourdes S. Binay 
AN ACT CLARIFYIN( i TllF I ,EC;AL EFFECT OF VIOl ATING THE PROHIBITED ACTS 
2 
AND MANDATORY PROVISIONS FOR TECIiNOLOGY TRANSPER AGREEMENTS, 
3 
AMFNDIN(; I:OR TIII~ SAIl) PlJRPOSE SECTION 92 OF REPUBLIC ACT 8293 OR TilE 
4 
I NTFI.l ,FeTl JAL PROPERTY CODE OF THE PHILIPPINES 
5 
() 
lie il ellacled "y Ihe Sellale al1d l10llse of Representalives otille Philippines in Congress 
7 
1/,\',\'(,III"led: 
x 
SI':CTION I. Scctioll 92 of Republic Act 8293 is hereby amended to read as J{)llows: 
l) 
10 
Sect inn 92. NOIl~Registmlion wilh the J)oeumentation, 
lnjcJrmation and 
I I 
'i'ecililologv '/hms/er liureau. ~ Technology transfer arrangements that conform 
12 
with the provisions of Sections 86 and 87 need not be registered with the 
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I)oclllllelitation, Inf(lrInatiol1 and Technology Transfer Bureau, 
14 
15 
Non~coll((lI'Inance with any or the provisions of Sections 87 and 88, however, 
I () 
shall automatically render the technology trans IeI' arrangement VOID AH 
17 
I N IT I 0, lllleJtiBn,mlble,unles,; naid technology-tt'llHsfef-tH'fangcmcnt in approvod 
I g 
andregmtered witlt-tlle--l*>etlmeitliHtBn,--lRfHHR[\tion ,:nd Technology Tnm&tet' 
19 
Bureau -lI".ler 
tke 
pnwisi+Hls~-Hf---geL4ion- -91-----HH-
e1[CeptioHal --0[\SO&o 
20 
TE< '1INOLO(iY TRANSFER ARRANGEMENT UNDER TIlE PROVISIONS 
21 
OF SFCTION 91 ON FXCI:,I'TIONAI. CASI-:S ARE NOT COVERED BY 
22 
TillS I'ARi\CiRAI'II. 
21 
24 
SECTION 2. SeflllmiJilil)1 Clallse. Should any part or provision of this Act be declared 
25 
unconstitutional or invalid, other parts or provisions hereof not otherwise affected thereby 
2() 
shall rcmain in fulll,)rce and efleet. 
27 
28 
SII:CTlON ], IUkctivily, This Act shall take dlCcllirtecn (15) days after its publication in at 
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least two (2) newspapers of general circulation, 
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3 I 
Approvcd,