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FOURTEENTH CONGRESS OF THE REPUSLIC) 
OF THE PHILIPPINES 
1 
Second Regular Sessiorl 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 2, Section 20 provides that: 
SEC. 20. The Slate recognizes the indispensable role of the private 
sector, encourages private enterprise, and provides incentives to 
needed investments. 
Throughout our history, the Philippines as a nation has been blessed by great minds. All 
over the world, countless Filipinos have won and have continually been recognized for their 
ingenuity. However, we currently do not have a solid program to recognize the achievement of 
our countrymen in research and developrnenl here in our country. Unfortunately, our inventors 
and innovators had to look elsewhere to gain recognition. This leads to our inventions being 
claimed by the foreign countries that recognized them. 
We need to establish a recognition program that will encourage our inventors and 
innovators to develop new products and technologies that can be produced and exported fiom 
our country. This would not only help our economy, but would once again give our local minds 
their due for their countless achievements in the field of research and development. 
This bill seeks to mandate the Department of Trade and Industry to establish a National 
Innovation Prizes Board who shall spearhead a program to solicit participation from various 
sectors of our country, encourage a competitive research and development drive and recognize 
and reward the best new inventions and innovations of our countrymen. 
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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S. No. 
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Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO ESTABLISH A PROGRAM TO AWARD INNOVATION PRIZES TO IiVDIVIDUALS 
AND ENTITIES FOR RESEARCHING AND DEVELOPING INNOVATIVE 
TECHNOLOGIES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Pinoy Innoventor Act of 
2008.” 
SECTION 2. Definitions. -The purposes of this Act the term - 
A. ADMINISTERING ENTITY - means an entity with which the Secretary enters 
into an agreement under Section 11. 
B. COMPETITION - means a competition for an innovation prize under the 
program described in Section 5. 
C. INNOVATION PRIZE - means a prize awarded to a participant who wins a 
competition. 
D. PARTICIPANT -means an individual or entity that participates in a competition. 
E. SECRETARY - means the Secretary of Trade and Industry. 
SECTION 3. National Innovation Prizes Board. - The Secretary shall establish in the 
Department of Trade and Industry a National Innovation Prizes Board (referred to in this Act as 
the ‘,‘Board”). The Board shall be composed of noted individuals, appointed by the Secretary, 
from both public and private sector whose qualification shall be determined by the Secretary to 
carry out the purposes of this Act. The term of each member shall be no more than three years. 
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SECTION 4. Purposes. - The purposes of the Board are as follows: 
A. To develop and administer the program described in Section 5. 
B. To select the research topics for competitions. 
C. To establish the rules of the competitions and the criteria for winning innovation 
prizes. 
D. To determine the amount of the innovation prize for each competition. 
E. To certify the winners of the competitions. 
F. To deteiinine the annual funding requirement for each competition. 
SECTION 5. Innovation Prizes Program. - The board shall carry out a program of 
competitions to award innovation prizes to eligible individuals and entities to advance the 
research, development, and commercial application of innovative technologies. 
SECTION 6. Eligible Individuals OY Entities. - An "'eligible individual or entity" is an 
individual, a university, or a small or large business that complies with the requirements of 
parawph (2). 
SECTION 7. Minimum Requirements for Eligibility. - An eligible individual or entity: 
A. shall have complied with such eligibility requirements for participation in a 
competition as the Board may establish; 
B. in the case of a private entity, shall be incorporated in and maintain a primary place of 
business in the Philippines; 
C. in the case of an individual, whether participating in the program singly or in a group, 
shall be a citizen of, 01 an alien lawfully admitted for permanent residence in, the 
Philippines; and 
D. maynothe- 
1. a government entity, such as a government funded research and development 
center or a government-owned, contractor-operated laboratory; 
2. an entity in which a member of the board has interest in; 
3. a relative of the member of the board within fourth degree of consanguinity; 
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4. a public official or employee acting within the scope of his office or 
employment; or 
5. a public official or employee of a national laboratory acting within the scope 
of his office or employment. 
SECTION 8. Development ofthe Program. -Not later than 120 days after the date of the 
enactment of this Act, the Secretary shall prepare and submit to the appropriate committees in 
the Senate and the House of Representatives a plan for implementing the program described in 
Section 5 that includes- 
A. a description of how the research topics for competitions and the criteria for awarding 
the innovation prizes will be determined; 
B. the terms and conditions of the competitions; 
C. the time frame for the award of innovation prizes; and 
D. a description of the plans of the Secretary to partner with nonprofit organizations or 
government agencies to sponsor competitions or to outsource administration of 
competitions to nonprofit organizations under Section 11. 
SECTION 9. Awards. - The Board shall determine the amount of each innovation prize 
for each competition and may elect to award only a first place prize or to award first, second, and 
third place prizes. 
SECTION 10. Adverhsing. - The Board shall advertise each competition widely to 
encourage broad participation in each competition, including by individuals, universities, and 
large and small businesses (including businesses owned or controlled by socially and 
economically disadvantaged persons). The advertisements shall include, among other 
information, the subject of the competition, the duration of the competition, the eligibility 
requirements for participation in the Competition, the process for participants to register for the 
competition, the amount of the innovation prize, and the criteria for awarding the innovation 
prize. 
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SECTION 11. Administering Competitions. - The Board may enter into an agreement 
with a private, nonprofit organization to administer competitions. The duties of the administering 
entity under the agreement shall include- 
A. advertising competitions and the results o f  competitions; 
B. raising funds from private entities and individuals to pay for administrative costs of 
competitions and to contribute to cash innovation prizes; 
C. working with the Board to develop the criteria for selecting winners in competitions, 
based on goals provided by the Secretary; 
D. determining, in consultation with the Board, the appropriate amount of each 
innovation prize to be awarded; 
E. selecting judges for competitions using criteria developed in consultation with the 
Board; and 
F. preventing the unauthorized we or disclosure o f  the intellectual property, trade 
secrets, and confidential business information of participants. 
SECTION 12. Funding. - Innovation prizes awarded under the program described in 
subsection (a) shall consist of- 
A. funds authorized to be appropriated under section 20; and 
B. any hnds raised by the administering entity under Section 1 l(B). 
C. any other funds which may be accepted by the Secretary from other governnient 
agencies for innovation prizes. 
SECTION 13. Funds from Other Entities. - The Board is authorized to enter into 
agreements with other entities, including corporations, nonprofit organizations, and other 
government agencies, to offer joint innovation prizes if- 
A. the joint innovation prize supports the purposes of this Act; 
B. the entity offering additional funds agrees to deposit the funds into a designated 
escrow account; and 
C. the Board retains full authority over the competition and the awarding of the cash 
innovation prizes. 
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.. SECTION 14. prohibition on Special Consideration. - The Secretary may not give any 
special consideration to any private sector entity or individual in return for a donation to the 
administering entity to fund a competition. 
SECTION 15. Announcement of Prizes Contingent on Funding. - The Secretary may not 
advertise or publish any prize until all the funds necessary to pay the innovation prize have been 
appropriated or cominitted in writing. 
SECTION 16. Waiver of Liability. - The Secretary may require participants to waive 
claims against the government and the administering entity (except claims for willful 
misconduct) for any injury, death, damage, or loss of property, revenue, or profits arising from 
participation in a competition. 
The Secretary may not require a participant to waive claims against the administering 
entity arising out of the unauthorized use or disclosure by the administering entity of the 
intellectual property, trade secrets, or confidential business information of the participant. 
SECTION 17. Insurance. - The Secretary may require liability insurance or demonstrate 
financial responsibility, in amounts determined by the Secretary, for claims by- 
A. a third party for death, bodily injury, or property damage or loss resulting from an 
activity carried out in connection with participation in a competition; and 
B. the government for damage or loss to government property resulting from 
participation in a competition. 
SECTION 18, Intellectual Property. - The intellectual property of participants in the 
competitions shall be protected. The Board shall provide for assistance in securing the 
intellectual property rights for qualified participants. The Board shall also provide for a 
convenient way for participants to ascertain whether there are any preexisting intellectual 
property rights that conflict with theirs. 
SECTION 19. Report. - Not later than one year after the date of the enactment of this 
Act, and annually thereafter, the Secretary shall submit to the appropriate committees in the 
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Senate and the House of Representatives a report describing the activities of the program 
described in Section 5, including- 
A. a description of the methods used to select the research topics of competitions and the 
amounts of the innovation prizes; 
B. a discussion of the features of competitions that contribute to the success or lack of 
success of the competitions; 
C. the number of participants involved in the competitions; 
D. the amount of private funds contributed to the program and the sonrces of such funds; 
E. the effect of the program on public awareness of innovation; and 
F. the effect of the program on the public image of the Department of Trade and 
Industry. 
SECTION 20. Appropriations. - To carry out the provisions of this Act, such amount as 
hereby necessary is hereby authorized to be appropriated fiom the National Treasury. 
SECTION 21. Separability Clause. - If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
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SECTION 22. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or is inconsistent 
with the provision of this Act is hereby repealed, modified, or amended accordingly. 
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SECTION 23. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
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Approved, 
/apml12808 
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