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NT ATIVES

RECEIVED
SEVENTEENTH CONGRESS OF THE REPUBLIC) 2.4 AUG 2016
OF THE PHILIPPINES ) pare_24
First Regular Session ) Tae: 3. |

BY:
HOUSE OF REPRESENTATIVES a iain
a ce

H.B.No._ 3 STRATION UNIT
INDEY SERVICE

Introduced by Representative Harry L. Roque Jr

AN ACT
PUNISHING THE PILFERAGE OR THEFT OF ANY MATERIAL,
MANUFACTURED, PRODUCED, OWNED OR BELONGING TO INFORMATION
TECHNOLOGY ENTERPRISES LOCATED IN SPECIAL ECONOMIC ZONES PRODUCT,
MERCHANDISE, ARTICLE, EQUIPMENT OR BY-PRODUCT

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 "Anti-Pilferage of Information

Technology Materials in Special Economic Zones Act.”

SECTION 2. Definition of Terms. -As used in this Act, the term:

(A) "Special Economic Zones (SEZs)" are selected areas with highly developed, or
which have the potential to be developed into agro-industrial, industrial, tourist’
recreational, commercial, banking, investment and financial centers. A SEZ may contain
any or all of the following: industrial estates, export processing zones, free trade zones,
tourist/recreational centers and information technology parks, as determined by the
Philippine Economic Zone Authority;

(B) "Information Technology (IT)" is the collective term for the various technologies
involved in processing and transmitting information which include computing,

multimedia, telecommunications, microelectronics, and their interdependencies. The term



countries. There is a necessity to increase the penalties provided by the Penal Code which
presently pertains to theft, whether simple or qualified. This bill seeks to assure IT industries that
we are very serious in protecting their economic rights while at the same time telling our
countrymen that this kind of wrongdoing should not and would not be tolerated,

This was a Senate counterpart bill to the one filed in the House of Representatives by

Representative Gilbert C. Remulla.!

(ml

HARRY L. ROQUE JR.

This bill was originally filed during the Fifteenth Congress, First Regular Session, and refiled by Senator
Miriam Defensor Santiago in the Sixteenth Congress, Third Regular Session.


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IT also refers to the convergence of various information-based, broadcast and mass media

communication technologies;

SECTIONS. Pilferage of IT Materials in SEZs. - It is hereby declared unlawful for any
person to take, pilfer or steal, with intent to gain, any material, product, merchandise, article,

equipment or by-product manufactured, produced, owned or belonging to IT enterprises located

in SEZs without their consent

SECTION 4. Presumption and Prima Facie Evidence. - The possession, control or
custody of any material, product, merchandise, article, equipment or by-product manufactured,
produced, owned or belonging to IT enterprises located in SEZs by any person who has no right
whatsoever to be in possession of such material, product, merchandise, article, equipment or by-
product shall be prima facie evidence of the following:

(A) They took, pilfered and stole such material, product, merchandise, article, equipment

or by-product as defined in Section 3 hereof: and

(B) Such material, product; merchandise, article, equipment or by-product is the fruit of

the offense defined in Section 3 hereof and it may therefore be confiscated from the

person in possession, control or custody thereof.

SECTION 5. Penalties.- (1) Any person guilty of committing the offense defined in
Section 3 hereof shall, upon conviction, be punished by the penalty of reclusion temporal and a
fine of not less than the value of the material, product, merchandise, article, equipment or by-
product taken, pilfered or stolen but not more than three (3) times such value.

(2) If the offense defined in Section 3 is committed by an officer, employee and/ or

laborer of an enterprise from which such material, product, merchandise, article, equipment or

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SEVENTEENTH CONGRESS OF THE REPUBLIC )
OF THE PHILIPPINES )
Firs tRegular Session )

HOUSE OF REPRESENTATIVES
H.B. No.

Introduced by Representative Harry L. Roque Jr.

AN ACT
PUNISHING THE PILFERAGE OR THEFT OF ANY MATERIAL,
MANUFACTURED, PRODUCED, OWNED OR BELONGING TO INFORMATION
TECHNOLOGY ENTERPRISES LOCATED IN SPECIAL ECONOMIC ZONES PRODUCT,
MERCHANDISE, ARTICLE, EQUIPMENT OR BY-PRODUCT

EXPLANATORY NOTE

‘The Information Technology (IT) industry in our country has been a breath of fresh air in
so far as our economy is concerned. Not only has the IT industry placed the Philippines in the
world map as one of the largest manufacturers of integrated, circuit chips and other similar
semiconductor products, but more importantly it has infused much needed capital into our ailing
economy.

These IT companies have given direct employment to thousands of our countrymen and
have also spurred employment opportunities to other related industries. As such, the business
being generated by their presence within the Special Economic Zones (SEZs) of our country
could not be measured solely by the number of people it has employed, Unfortunately,
individuals and/or syndicates have managed to dip their dirty hands into the IT industry's basket
‘Theft and pilferage of this industry's products have been on the increase due to two main
reasons; the relative ease in carrying away these products because of their miniature volume plus
the fact that these products are worth more than their weight in gold. Theft decreases our

competitiveness in the global arena, and consequently, we might lose these investments to other


by-product has been taken, pilfered or stolen, the penalty shall be reclusion perpetua and a fine
of not less than the value of the material, product, merchandise, article, equipment or by-product

taken, pilfered or stolen but not more than three times of such value.

SECTION 6. Liability under the Revised Penal Code and Other Laws. - Prosecution
under this Act shall be without prejudice to any liability for violation of any provision of the

Penal Code or any other law.

SECTION 7. 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,

SECTION 8. Repealing Clause. - Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent

with, the provisions of this Act is hereby repealed, modified, or amended accordingly.

SECTION 9. Effectivity Clause. ~This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,