Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Thirteent Congress
First Regular Session

HOUSE BILL NO. __ 183

Introduced by Honorable Gilbert C. Remulla

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 has also spurred employment opportunities to other related
industries. As stich, the business being generated by their presence within our
country's Special Economic Zones (SEZs) 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 countries.

Because of this, there is a necessity to increase the penalties provided by
the Revised 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 wrongdoing should not and would not be tolerated.

In view of the foregoing, passage of this bill is hereby requested.

GD -EMULLA



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

‘Thirteenth Congress
Firet Regular Session

83
HOUSE BILL NO.

Introduced by Honorable Gilbert C. Remulla

AN ACT PUNISHING THE PILFERAGE OR THEFT OF ANY MATERIAL,

PRODUCT, MERCHANDISE, ARTICLE, EQUIPMENT OR BY-PRODUCT

MANUFACTURED, PRODUCED, OWNED, OR BELONGING TO

INFORMATION TECHNOLOGY ENTERPRISES LOCATED IN SPECIAL
ECONOMIC ZONES.

Be it enacted by the Senate and the House of Representatives of the Republic of the
Philippines in. Congress assembled:

Section 1. Short Title, - This Act shall be referred to as the “Anti-
Pilferage of Information Technology Materials in Special Economic Zones Act’

Sec. 2. Definitions, — For purposes of this Act, the following definitions
shall apply to the following terms:

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


See. 3. 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.

Sec. 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.

Sec. 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 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, part or supplies taken, pilfered or stolen but
not more than three (3) times such value

Sec. 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 Revised Penal Code or any other law.

Sec. 7. Separability Clause. — Any portion or provision of this Act which
may be declared unconstitutional or invalid shall not have the effect of nullifying
other portions or provisions hereof.

Sec. 8. Repealing Clause, — All laws, ordinances, rules, regulations, and
other issuances or parts thereof contrary to or inconsistent with the provisions of
this Act are hereby repealed, modified or amended accordingly.

Sec. 9. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspapers of general circulation.

Approved,