FIFTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S.B. No. 2821 
'11 
I1~Y 17 P3 :23 
Introduced by SENATOR MANNY VILLAR 
EXPLANATORY NOTE 
The era of FreelOpen Source Software (FOSS) has come. 
Once considered the realm of geeks, computer experts and cyberspace activists, FOSS is 
now steadily gaining ground among a broad range of information and communications 
technology (leT) consumers - from home users and barangays, schools to large corporate 
enterprises and government agencies - who are looking for alternatives to the expensive, 
overbearing and restrictive products of proprietary software monopolies like Microsoft, Unix 
and Adobe, among others. 
Unlike proprietary software, FOSS is cheap (in fact, most FOSS are distributed gratis to the 
public by their own developers and can be freely distributed), flexible and development 
friendly (FOSS source codes are accessible to consumers who may study, modify and 
customize the software), interoperable (FOSS adheres to open standards and are meant 
to work across various platforms and protocols), and safe (the opening of the source codes 
and the use of open standards have allowed hundreds of thousands of users around the 
globe to serve as a virtual research and development team, providing patches and solutions 
to bugs and glitches in real time over the internet). 
Today, most widely-used proprietary softwares have equivalent FOSS which is cheaper, 
safer and more robust. This is why the use of FOSS is steadily gaining ground in many 
countries in Europe, North America, Latin America and Asia. 
FOSS give software users freedom - the freedom to run the program in any way one 
wishes, to study and modify its source codes, to make copies and distribute them as one 
wishes, and to redistribute the said program. 
An apparent benefit of FOSS is its low cost. Giant chip maker Intel reportedly saved $200 
million for switching their servers from proprietary UNIX software to open GNU/Linux 
software, while Amazon reported a US$17 million savings for migrating from Microsoft to 
GNU/Linux. 
Many organizations and several studies have shown that using FOSS in lieu of proprietary 
software results in significant savings of anywhere from 15% to 35% over a span of three 
years not only due to lower licensing costs but lower personnel and hardware costs. 
A study produced by the International Open Source Network (IOSN) and United Nations 
Development Program - Asia-Pacific Development Information Programme have identified 
the following strategic benefits of FOSS: (1) Developing local capacity industry; (2) reducing 
imports/conserving foreign exchange; (3) Enhancing national security; (4) Reducing 
copyright infringements; (5) Enabling localization. 
The study also identified economic benefits as: (1) Increasing competition; (2) Reducing 
total cost of ownership; (3) Enhancing security; (4) Achieving vendor independence. 


Add to this the social benefit of increasing access to information, promoting citizens' 
knowledge about software and software techniques, encouraging cooperation among the 
citizenry, and providing the public with democratic control over the software that it uses. 
In fact, the viability and advantages of FOSS has not been lost on us Filipinos. The 
Advanced Science and Technology Institute of the Department of Science and Technology 
(ASTI-DOST) has developed the Bayanihan Linux, a complete desktop solution for office 
and school use based on GNU/Linux, and Bayanihan Linux Server, an easy-to-use 
GNU/Linux server for government agencies, schools and SMEs. These Bayanihan Linux 
programs can do everything that proprietary operating systems can do, except drain one's 
pockets, mainly because they are distributed by their developers for free. 
Exist, a 100%-owned Filipino open-source software company was recently awarded the 
prestigious Red Herring award for the top 100 start-up technology companies. This is proof 
that given the opportunity and proper support, Filipino companies can be a major supplier in 
the growing global FOSS market. 
This bill, which mandates the use of FOSS, open standards and open formats in all 
government agencies, and which encourages the use and development of FOSS in the 
private and public sectors, will benefit the Philippines by: (1) Promoting the people's right to 
access public informations; (2) Lowering the overall cost of ICT in the public and private 
sectors by reducing the country's dependence on proprietary software and computer 
applications; (3) Making ICT more accessible to a greater number of users; (4) Unlocking 
the potential and encouraging the development of a self reliant, genuinely Filipino IT 
industry; and, (5) Providing greater security for highly sensitive government and private 
information systems. 
In view of the foregoing, passage of the bill is earnestly sought. 
MANNYVLLAR 


FIFTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S.B. No. 2B21 
Introduced by SENATOR MANNY VILLAR 
AN ACT 
PROMOTING THE DEVELOPMENT AND USE OF FREEIOPEN SOURCE SOFTWARE 
(FOSS) IN THE PHILIPPINES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Free/Open Source Software 
2 
(FOSS) Act of 2011". 
3 
4 
SECTION 2. Declaration of Policy. - In accordance with Section 24 of Article II of the 
5 
Constitution which declares that: "The State recognizes the vital role of communication and 
6 
information in nation building", and recognizing the wide discrepancy between the 
7 
technologies of developing countries and advanced countries; realizing the economic 
8 
limitations in the information and communication technology (lCT) of developing countries, 
9 
especially on the viability of purchasing and implementing expensive software solutions; 
10 
aware of the relatively slow diffusion of technology between the developed and developing 
11 
countries; it is hereby declared the policy of the State to: 
12 
13 
1. Ensure the self-reliance of the State in technology and technology capabilities, in 
14 
accordance with Article XIV, Sec. 10 of the Constitution, by ensuring that the State has 
15 
access to the source codes of its computers' software; 
16 
17 
2. Strengthen the public's access to information and government data, in accordance 
18 
with Article III, Section 7 of the Constitution, by mandating the use of open standards 
19 
and formats in government, hence ensuring the interoperability of data and government 
20 
communications; 
21 
22 
3. Promote the preferential use of domestic material and Filipino labor in information 
23 
communications technology, in accordance with Article XII, Sec. 12 of the Constitution; 
24 
25 
4. Adopt mechanisms to ensure fiscal diSCipline in the purchase of software without 
26 
compromising the State's security and the stability and robustness of the country's ICT 
27 
infrastructure, and; 
28 
29 
5. Develop Filipino professionals and scientists in the field of software technology and 
30 
ICT by promoting the use and purchase of freelopen source software, in accordance 
31 
with Article XII, Sec. 14 of the Constitution. 
32 
33 
34 
35 
36 
37 
SECTION 3. Definition of Terms. - For purposes of this Act, the following terms and 
38 
phrases are so defined: 
39 


1 
Source code -
The set of human readable instructions and statements written by the 
2 
programmer using a particular programming language, including the modules, components 
3 
of the executable program, and any interface definition files and scripts used to compile and 
4 
install a program. 
5 
6 
Interoperability - The ability of information systems to operate in conjunction with each 
7 
other encompassing protocols, hardware software, application, and data compatibility 
8 
layers. In particular, it is the ability of different types of computers, networks, operating 
9 
systems, and applications to work together effectively, without prior communication, in order 
10 
to exchange information in a useful and meaningful manner. 
11 
12 
Open standards - Those standards, protocols, specifications, and any other data formats 
13 
made available to the general public and are developed, approved and maintained via a 
14 
public, collaborative, transparent and consensus-driven process. 
In addition, open 
15 
standards must meet all of the following criteria: 
16 
17 
1. The adoption and development of the standard includes the consideration of and 
18 
response to inputs by interested parties, and occurs on the basis of an open decision-
19 
making procedure available to all; 
20 
21 
2. The standard has been published and the published document is available freely. It 
22 
must be permissible for all to copy, distribute and use it without any fee; 
23 
24 
3. The standard is affirmed by an international standards development organization 
25 
(SOO) or, in the absence of such affirmation, at least by a government-commissioned 
26 
SOO; 
27 
28 
4. The standard is vendor neutral and allows for sufficient development of a variety of 
29 
competing interoperable products or services, and; 
30 
31 
5. There are no constraints on the re-use of the standard. 
32 
33 
Open Format -
A published specification for storing digital data that is based on and 
34 
employs open standards, and which are implementable by both proprietary and free-open 
35 
source software. 
36 
37 
Free-Open Source Software (FOSS) - Any software computer program that meets all of 
38 
the following criteria: 
39 
40 
1. The source code of the software, including the source code for such other parts and 
41 
components needed to compile and install the software shall be readily available and 
42 
accessible; 
43 
44 
2. The license to use the program does not restrict nor require fees such as royalties 
45 
from anyone to redistribute, in any way, the program as part of an aggregate software 
46 
distribution or solution containing other programs from several other sources; 
47 
48 
3. The license must allow modifications and derived works which, as specified in 
49 
Paragraph 4.2 of this Section, must allow for redistribution without additional charges; 
50 
51 
4. The license to use must not discriminate against persons nor a specific group of 
52 
persons; 
53 
54 
5. The license of the program shall not be restricted to it being part of a particular 
55 
software distribution, hence, individual components of an aggregate solution can be 
56 
modified and redistributed in accordance to Paragraphs 4.2 and 4.3 of this section; 
57 
6. A software license must not restrict other software from being used as part or in 
58 
cooperation with the FOSS. Hence, the license of the open source software can be used 
59 
in conjunction with proprietary software, and; 


1 
2 
7. The license must be technology neutral. No foreseeable/deliberate restrictions should 
3 
be placed regarding the use of the software in any platform, or for any purpose. 
4 
5 
FOSS License - any license and/or end-user agreement that ensures free access and 
6 
redistribution of free/open source software, the licenses of which are generally approved by 
7 
an internationally recognized FOSS advocate body. 
8 
9 
Total Cost of Ownership (TCO) - covers all the costs involved in a technology or business 
10 
solution, including the initial investment cost and maintenance, support, replacement, 
11 
training and upgrade costs. 
12 
13 
Government - includes the three separate branches of government and all departments, 
14 
bureaus, offices and agencies operating under each separate branch of government, 
15 
including schools and government-owned and controlled corporations. 
16 
17 
SECTION 4. Legal Recognition of FOSS. - The government shall recognize the validity 
18 
and legitimacy of FOSS and FOSS licenses, subject to the provisions of existing laws, rules 
19 
and regulations. 
20 
21 
SECTION 5. Government Rules and Policies on the Use and Adoption of Open 
22 
Standards and FOSS in Government. 
23 
24 
1. Use of Open Standards -
The government shall use only ICT goods and 
25 
services that comply with open standards except under extraordinary circumstances 
26 
as defined in Section 5.5 of this Act; 
27 
28 
2. Use of Open Formats - All government communication and data intended for 
29 
public consumption shall be encoded in open standard data format; 
30 
31 
3. Use of FOSS - The government shall apply only FOSS or FOSS solutions in all 
32 
ICT projects and activities except under extraordinary circumstances as defined in 
33 
Section 5.5 of this Act; 
34 
35 
4. Use of RAND License for Open Standards - Open standards licensed under 
36 
"Reasonable and Non-Discriminatory" (RAND) terms, and hence are not free but are 
37 
available for a reasonable fee shall be used only under extraordinary circumstances 
38 
as defined in Section 5.5 of this Act; 
39 
40 
5. 
Extraordinary Circumstances -
The Commission on 
Information and 
41 
Communications Technology (CICT), through the Office of FOSS Migration created 
42 
under Section 15 shall determine, through public hearing, whether there exists 
43 
extraordinary circumstances that will exempt a government agency or project from 
44 
Sections 5.1 to 5.4 of this Act. Extraordinary circumstances exist when: 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
a) There is no reasonably available ICT goods or services supporting open 
standards and/or FOSS in the field, area or activity that the government 
intends to engage in, or; 
b) A particular government agency or office has an existing, widely-used and 
widely implemented proprietary ICT system and there are no reasonably 
available technology using open standards and/or FOSS that can be used 
with the said proprietary system. 
56 
6. Limitations on the Use of Proprietary Standards and Software in 
57 
Government - Should there exist extraordinary circumstances as enumerated in 
58 
Section 5.5 of this Act, the government may use proprietary standards and software 
59 
subject to the following conditions: 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
a) The state shall procure, purchase or acquire only ICT goods and services 
that are interoperable and scalable with open standards; 
b) The state shall procure, purchase or acquire available software that offers 
license most similar to FOSS as defined in Section 3 of this Act, and; 
c) Open standards and FOSS will be selected and given preference when 
existing systems are to be retired or need major enhancements. 
11 
SECTION 6. Adoption of FOSS Policy in Government Research and Development. -
12 
All software developed by government must be FOSS and open standards compliant except 
13 
in exigent circumstances where national security may be in peril, or in such other case 
14 
where the right to freedom to public information is reasonably controlled as provided for by 
15 
law. In case of exigent circumstances, government shall release under a FOSS license for 
16 
public consumption said software, system and ICT goods and services when it is to be 
17 
retired or replaced. 
18 
19 
SECTION 7. Provision Against Single Vendor Lock-in and Dependence. Under no 
20 
circumstances shall the government acquire ICT goods and services that are restricted for 
21 
use in a single vendor environment only. All prospective ICT investments of the government 
22 
shall comply with open standards. Existing ICT systems will be reviewed for open standards 
23 
compatibility and will be enhanced to achieve open standards compatibility when 
24 
appropriate. 
25 
26 
SECTION 8. Preference in Procurement of ICT Services and Goods. - In case there is 
27 
more than one company that offers FOSS and open standard compliant solutions to the 
28 
government with almost equal total cost of ownership, preference shall be given to the 
29 
Filipino-owned ICT Company. 
30 
31 
SECTION 9. Promotion of FOSS and Open Standards in Educational Institutions. 
32 
33 
1. The government, through the Commission on Higher Education (CHED), 
34 
Department of Education (DepEd), the National Computer Center (NCC), the 
35 
Department of Science and Technology (DOST) and other appropriate agencies 
36 
shall promote FOSS by providing laboratories, organizing competitions, and 
37 
encouraging research, thesis and dissertations on FOSS development and the 
38 
development of open standards; 
39 
40 
2. Within eight (8) months after this Act takes effect, DepEd, DOST, CHED and the 
41 
Technical Education and Skills Development Authority (TESDA) shall spearhead the 
42 
formulation and implementation of a curriculum for training students and teachers on 
43 
the use and development of FOSS in all levels of education. They will also formulate 
44 
in cooperation with the CICT and other appropriate agencies, a basic government 
45 
retraining and certification program for existing IT professionals to test their 
46 
proficiencies and skills in implementing FOSS solutions. 
47 
48 
3. Higher educational institutions that offer professional certification programs on the 
49 
use and implementation of proprietary software and solutions will be encouraged to 
50 
offer similar certification programs for FOSS and open standard solutions. 
51 
52 
SECTION 10. Promotion of FOSS and Open Standards in the Private Sector. - The 
53 
government shall provide various types of non-fiscal incentives and support to private sector 
54 
entities involved in the use, promotion and development of FOSS and open standards. 
55 
56 
SECTION 11. Amending Section 22 of RA 8293, otherwise known as the "Intellectual 
57 
Property Code of the Philippines". 
58 


1 
Sec. 22 of RA 8293 otherwise known as the Intellectual Property Code of the 
2 
Philippines is hereby amended to read as follows: 
3 
4 
---xxx---
5 
6 
Section 22. Non-Patentable Inventions. The following shall be excluded from patent 
7 
protection: 
8 
9 
22.1. Discoveries, scientific theories and mathematical methods; 
10 
11 
22.2. Schemes, rules and methods of performing mental acts, playing games or 
12 
doing business, and programs for computers; 
13 
14 
22.3. Methods for the treatment of the human or animal body by surgery or therapy 
15 
and diagnostic methods practiced on the human or animal body. This provision 
16 
shall not apply to products and composition for use in any of these methods; 
17 
18 
22.4. Plant varieties or animal breeds or essentially biological process for the 
19 
production of plants or animals. This provision shall not apply to 
20 
microorganisms and non biological and microbiological processes. 
21 
22 
Provisions under this subsection shall not preclude Congress to consider the 
23 
enactment of a law providing sui generis protection of plant varieties and 
24 
animal breeds and a system of community intellectual rights protection: 
25 
26 
22.5. Aesthetic creations; [and] 
27 
28 
22.6. COMPUTER PROGRAMS, TECHNIQUES AND METHODS IN COMPUTING 
29 
AND ARRANGING DATA FOR USE IN DIGITAL FORMAT, INCLUDING 
30 
ALGORITHMS; 
31 
32 
22.7. PROTOCOLS, SPECIFICATIONS, METHODS OF ARRANGING DATA THAT 
33 
ARE KNOWN TO FORM PART OF OPEN STANDARDS OR ARE INTEGRAL 
34 
TO IMPLEMENTATION OF OPEN STANDARDS, AND; 
35 
36 
22.8. Anything which is contrary to public order or morality. 
37 
38 
SECTION 12. Penalties. - Any act or omission on the part of any public official(s) and/or 
39 
individuals, juridical or otherwise, acting in conspiracy with public officials violating 
40 
provisions of this Act shall be penalized in accordance with pertinent provision(s) of RA 
41 
3019, otherwise known as the "Anti-Graft and Corrupt Practices Act as Amended', "The 
42 
Civil Service Law as Amended" or both whichever is applicable. 
43 
44 
SECTION 13. Implementation. - The Commission on Information and Communications 
45 
Technology (CICT) shall be the main government agency tasked to oversee the 
46 
implementation of this Act. Within six (6) months after this Act takes effect, the CICT shall: 
47 
48 
1. Submit to the Office of the President and to Congress an audit of all existing 
49 
government ICT systems, and its recommendations as to system migration and 
50 
changes needed to fulfil the objectives of this Act; 
51 
52 
2. Come up with implementing rules and regulations for this Act which shall include 
53 
as minimum the following: 
54 
55 
56 
57 
58 
59 
a) Within three years, 90% of government IT professionals, and 65% of the 
country's IT professionals must be proficient in the implementation of FOSS 
systems, and; 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
b) Within five years, 75% of all existing government systems shall be open 
standards compliant, and all government communication and research data 
intended for public consumption and access shall be in open standard data 
format; 
c) Within five years, 75% of all existing government systems shall employ FOSS. 
To be qualified as compliant to this Act, one machine is counted as employing 
FOSS when at the minimum, its operating system, and the computing programs 
used to fulfill the purpose of the machine (e.g., office suite programs for 
machines intended for office use, or counting programs for counting machines) 
are FOSS. 
d) The effective advocacy, training and development of a FOSS community in the 
country that will help in the development of FOSS programs and in the advocacy 
of FOSS. 
17 
SECTION 14. Amending EO 269, Promulgating Additional Mandate to the CICT. - To 
18 
successfully implement proVisions of this Act, the mandate of CICT shall now include the 
19 
following: 
20 
21 
1. Catalogue, compile and publish all existing international open standards 
22 
applicable to the Philippines; 
23 
24 
2. Pending applicable international open standards for the Philippines, the CICT 
25 
shall spearhead the development of open standards for the country in the process 
26 
ensuring the participation of Philippine ICT professional organizations, non-
27 
government organizations and other stakeholders in the creation of such; 
28 
29 
3. Ensure the compliance of all government agencies to this Act, and; 
30 
31 
4. Encourage private entities to adopt systems and solutions compliant with open 
32 
standards. 
33 
34 
SECTION 15. Creating the Office on FOSS Migration. - There shall be created an office 
35 
on FOSS migration to be headed by a known FOSS advocate with at least ten years of 
36 
experience in the field of ICT and FOSS. Such office shall be an attached agency of the 
37 
CICT with its head receiving compensation, benefits, privileges and other emoluments 
38 
equivalent to a Commissioner of the CICT. 
39 
40 
The new office thus created shall have the following mandate, duties, powers and 
41 
responsibilities: 
42 
43 
1. Ensure the efficient, prompt and successful migration of all government ICT goods 
44 
and services to FOSS as mandated in this Act and its IRR; 
45 
46 
2. Determine, upon request of a government agency, if there exists extraordinary 
47 
circumstances enumerated in Section 5.5 of this Act that will exempt a particular 
48 
project or ICT implementation from Sections 5.1 to 5.4 of this Act; 
49 
50 
3. Review and ensure the compliance of all government agencies to pertinent 
51 
provisions of this Act; 
52 
53 
4. Train and develop human capital for FOSS in the Philippines; 
54 
55 
5. Coordinate with the DOST, National Computer Center (NCC) and other 
56 
government 
agencies, 
State 
Universities 
and 
Colleges, 
for 
modification, 
57 
customization and development of FOSS for government use; 
58 


1 
6. Aid in the prosecution of public officials and individuals, juridical or otherwise, 
2 
acting in conspiracy with government officials in refusing to implement provisions of 
3 
this Act; 
4 
5 
7. Create its own sub-offices, hire staff including programmers for modification, 
6 
improvement and development of existing FOSS, and seek the services of 
7 
consultants to aid in its mandate and successful implementation of this Act, and; 
8 
9 
8. Disburse funds thereof for its operations. 
10 
11 
SECTION 16. Appropriations. - The sum of twenty million pesos (P20,OOO,OOO.OO) shall 
12 
be allocated for the CICT for the implementation of its new additional mandate, and another 
13 
fifty million pesos (P50,OOO,OOO.OO) for the creation and operations of the Office of FOSS 
14 
Migration for the first year this bill is enacted into law. Appropriations for the implementation 
15 
of this Act for the succeeding years shall be included in the General Appropriations Act. 
16 
17 
SECTION 17. Repealing Clause -
Section 22 of RA 8293 otherwise known as the 
18 
"Intellectual Property Code of the Philippines" is hereby amended in accordance to Section 
19 
11 of this Act. All other laws, presidential decrees, executive orders, and rules and 
20 
regulations, or parts thereof inconsistent with the provisions of this Act are hereby repealed, 
21 
modified or amended accordingly. 
22 
23 
SECTION 18. Separability Clause -
If any section or provIsion of this Act is held 
24 
unconstitutional or invalid, the validity of other sections herein shall not be affected thereby. 
25 
26 
SECTION 19. Effectivity - this Act shall take effect fifteen (15) days after its publication in 
27 
the Official Gazette or in at least two (2) newspapers of general circulation. 
28 
29 
30 
Approved,