t 
THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
. ,E. 
S. No. 
3 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
EXPLANATORY NOTE 
The Geneva-based General Agreement on Tariffs and Trade, or GATT, was established in 
1947 to promote the multilateral trading system through non-discriminatory trade liberalization, 
and through fair and effective rules and disciplines. The ultimate objective of GATT is to raise 
world incomes and standards of living through the expansion of international trade. 
GATT is the premier global institution that sponsors multilateral trade negotiating 
rounds, such as the Uruguay Round. These rounds generally achieve the progressive lowering of 
imports tariffs (or taxes on imports collected by Customs authorities), the reduction and even 
elimination of non-tariff barriers to trade (e.g. import quotas or prohibitions, technical 
regulations), and improvements in the rules and disciplines that govern multilateral trade. 
There are now some 120 Contracting Parties and Observers in the GATT, and together 
they account for about 90% of world trade. The Philippines acceded to the GATT in 1980 after 
the conclusion of the Tokyo Round, and has since then participated actively in the various work 
of the GATT, including the Uruguay Round. 
The Philippines sees value in the basic principles that the GATT upholds. These include 
the Most-Favored-Nation principle (MFN), or trade without discrimination; the binding of tariffs, 
or the commitment not to raise tariffs beyond a specified rate; National Treatment, or the 
commitment not to discriminate against imports inside the domestic market; and the undertaking 
to eliminate quantitative import restrictions. As a small trading nation, the Philippines needs 
GATT principles to promote its trading interests and to guard itself against unfair and often 
unilateral trade practices of its stronger and richer trading partners. 
The TRIPS Agreement defines, among others, the minimum intellectual property system 
for the Member, including standards concerning the availability, scope and use of intellectual 
property rights, enforcement of intellectual property rights, maintenance of intellectual property 
rights, dispute prevention and settlement, transitional arrangements, and institutional 
arrangements. 
The TRlPS Agreement standards concerning the availability, scope and the use of 
intellectual property rights covers the following intellectual property rights: 
1. 
Copyright and Related Rights; 
2. 
Trademarks; 
3. 
Geographical Indications; 
4. 
Industrial Designs; 
5. 
Patents; 
6. 
7. 
Protection of Undisclosed Information 
Layout-Designs (Topographies) of Integrated Circuits; and 
Layout-Design-is 
synonymous with topography and means the three-dimensional 
disposition, however expressed, of the elements, at least one of which is an active element, and 
of some or all of the interconnections of an integrated circuit, or such a three-dimensional 
disposition prepared for an integrated circuit intended for manufacture. 


. 
2. 
Integrated circuit means a product, in its final form or an intermediate form, in which the 
elements, at least one of which is an active element, and some or all of the interconnections are 
integrally formed in and/or on a piece of material and which is intended to perform an electronic 
function. Layout-Designs of integrated circuits are not industrial designs in the sense of the laws 
providing for the registration of industrial designs because they do not determine the external 
appearance of integrated circuits. Moreover, layout-designs of integrated circuits are not 
normally patentable inventions because their creation does not require an inventive step, although 
it requires a great amount of work by an expert. 
The reasons for assuring protection of layout-designs of integrated circuits encompass not 
only a just reward for the creator but also the function of providing an incentive for creation, 
which in turn may be expected to encourage an adequate level of investment of human, financial 
and technological resowces in order to produce new technological solutions and original 
products for the benefit of the consuming public, the advancement of technological progress and 
the dissemination of that progress through the acquisition of foreign technology. Since “reverse 
engineering” is permitted under the Washington Treaty as well under the draft Law, enterprises 
in places where a product containing integrated circuits becomes available have the opportunity 
to evaluate and analyze, and thereby acquire a knowledge of the layout-design incorporated in 
such a product and the techniques by which the layout-design has been created. Similarly, 
voluntary licensing is encouraged by the availability of protection. If the creator of the 
technology can be reasonably sure that his creation will be protected, he is more ready to part 
with his creation by allowing its reproduction or other use against payment. In the said context, it 
should also be underlined that experience shows that transfer of technology is faster and more 
secure if the reproduction, incorporation, manufacture, etc. are done with the cooperation of the 
creator than if they are done without such cooperation through reverse engineering. 
In view of the foregoing, approval of this bill is highly recommended. 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
, .  
SENATE 
c 
% “  
S. No. 
*I 
. 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
AN 
ACT 
PROVIDING 
FOR 
THE 
PROTECTION 
OF LAYOUT-DESIGNS 
(TOPOGRAPHIES) OF INTEGRATED CIRCUITS, AMENDING FOR THE 
PURPOSE CERTAIN SECTIONS OF REPUBLIC ACT NO. 8293, OTHERWISE 
KNOWN AS THE INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. 
Sections 112, 113, 114, 116, 117, 118, 119 and 120 under Chapter XIII of 
Republic Act No. 8293 are hereby amended to read as follows: 
CHAPTER XIII 
INDUSTRIAL DESIGN AND LAYOUT-DESIGNS (TOPOGRAPHIES) OF 
INTEGRATED CIRCUITS 
“SEC. 112. Definition [(of Industrial Design)] OF TERMS: 
“(1) 
An industrial design is any composition of lines or colors or any three- 
dimensional form, whether or not associated with lines or colors: Provided, That such 
composition or form gives a special appearance to and can serve as pattern for an industrial 
product or handicraft; [(Section 55, Republic Act No. 165)] 
“(2) 
INTEGRATED CIRCUIT MEANS A PRODUCT, IN ITS FINAL FORM, 
OR AN INTEGRATED FORM, IN WHICH THE ELEMENTS, AT LEAST ONE OF 
WHICH IS AN ACTIVE ELEMENT, AND SOME OR ALL OF THE 
INTERCONNECTIONS ARE INTEGRALLY FORMED IN AND/OR ON A PIECE 
OF MATERIAL, AND WHICH IS INTENDED TO PERFORM AN ELECTRONIC 
FUNCTION; AND 


“(3) 
LAYOUT-DESIGN IS SYNONYMOUS WITH “TOPOGRAPHY” AND 
MEANS THE THREE-DIMENSIONAL DISPOSITION, HOWEVER EXPRESSED, 
OF THE ELEMENTS, AT LEAST ONE OF WHICH IS AN ACTIVE ELEMENT, 
AND OF SOME OR ALL OF THE INTERCONNECTIONS OF AN INTEGRATED 
CIRCUIT, OR SUCH A THREE-DIMENSIONAL DISPOSITION PREPARED FOR 
AN INTEGRATED CIRCUIT INTENDED FOR MANUFACTURE. 
“SEC. 1 13. Substantive Conditions for Protection. - 1 13.1. Only industrial designs that 
are new or [original] ORNAMENTAL shall benefit from protection under this Act. 
“1 13.2. Industrial designs dictated essentially by technical or functional considerations to 
obtain a technical result or those that are contrary to public order, health or morals shall not 
be protected. 
‘‘113.3 ONLY LAYOUT-DESIGNS OF INTEGRATED CIRCUITS THAT ARE 
ORIGINAL SHALL BENEFIT FROM PROTECTION UNDER THIS ACT. 
A 
LAYOUT-DESIGN SHALL BE CONSIDERED ORIGINAL IF IT IS THE RESULT 
OF ITS CREATOR’S OWN INTELLECTUAL EFFORT AND IS NOT 
COMMONPLACE 
AMONG 
CREATORS 
OF 
LAYOUT-DESIGNS 
AND 
MANUFACTURES OF INTEGRATED CIRCUITS AT THE TIME OF ITS 
CREATION. 
“113.4. A 
LAYOUT-DESIGN 
CONSISTING OF A COMBINATION OF 
ELEMENTS AND INTERCONNECTIONS THAT ARE COMMONPLACE SHALL 
BE PROTECTED ONLY IF THE COMBINATION, TAKEN AS A WHOLE, rs 
ORIGINAL. 
“SEC. 114. 
Contents of the Application. - 114.1. Every application for registration of 
an industrial design OR LAYOUT-DESIGN shall contain: 
“(a) 
“(b) 
Information identifying the applicant; 
A request for registration of the industrial design OR LAYOUT-DESIGN; 
“(c) 
INDUSTRIAL design OR LAYOUT-DESIGN shall be applied; 
An indication of the kind of article of manufacture or handicraft to which the 


I
‘
 
“(d) 
A representation of the article of manufacture or handicraft by way of drawings, 
photographs or [other] adequate graphic representation of the INDUSTRIAL design OR 
OF THE LAYOUT-DESIGN as applied to the article of manufacture or handicraft which 
clearly and filly discloses those feature for which [design] protection is claimed; and 
“(e) 
The name and address of the creator, or where the applicant is not the creator, a 
statement indicating the origin of the right to the industrial design OR LAYOUT-DESIGN 
registration. 
“1 14.2. The application may be accompanied by a specimen of the article embodying the 
industrial design OR LAYOUT-DESIGN and shall be subject to the payment of the 
prescribed fee. 
“SEC. 116. 
Examination. - 116.1. The Office shall accord as the filing date the date 
of receipt of the application containing indications allowing the identity of the applicant to 
be established and a representation of the article embodying the industrial design OR THE 
LAYOUT-DESIGN or a pictorial representation thereof. 
“1 16.2. If the application does not meet these requirements, the filing date should be that 
date when all the elements specified in Section [lo51 114 are filed or the mistakes 
corrected. Otherwise, if the requirements are not complied within the prescribed period, 
the application shall be considered withdrawn. 
“1 16.3, After the application has been accorded a filing date and the required fees paid on 
time, the applicant shall comply with the requirements of Section 114 within the prescribed 
period, otherwise the application shall be considered withdrawn. 
“1 16.4 The Office shall examine whether the industrial design OR LAYOUT-DESIGN 
complies with requirements of Section 112 (Definitions) and [Subsections 113.2 and 113.31 
SECTION 113 (Substantive Conditions for Protection). 
“SEC. 1 17. 
Registration. - 1 17.1. Where the Office finds that the conditions referred 
to in Section 113 are fulfilled, it shall order that registration be effected in the industrial 
design OR LAYOUT-DESIGN register and cause the issuance of an industrial design OR 
LAYOUT-DESIGN certificate of registration; otherwise, it shall refuse the application. 


“1 17.2. The form and contents of an industrial design OR LAYOUT-DESIGN certificate 
shall be established by the regulations: Provided, That the name and address of the creator 
shall be mentioned in every case. 
“117.3. Registration shall be published in the form and within the period fixed by the 
regulations. 
“1 17.4. The Office shall record in the register any change in the identity of the proprietor 
of the industrial design OR LAYOUT-DESIGN or his representative, if proof thereof is 
furnished to it. A fee shall be paid, with the request to record the change in the identity of 
the proprietor. If the fee is not paid, the request shall be deemed not to have been filed. In 
such case, the former proprietor and the former representative shall remain subject to the 
rights and obligations as provided in this Act. 
“1 17.5. Anyone may inspect the register and the files of registered industrial designs OR 
LAYOUT-DESIGNS including files of cancellation proceedings. 
“SEC. 118. 
The Term of Industrial Design OR LAYOUT-DESIGN Registration. - 
118.1. The registration of an industrial design shall be for a period of five (5) years from 
the filing date of the application. 
“1 18.2. The registration of an industrial design may be renewed for not more than two (2) 
consecutive periods of five (5) years each, by paying the renewal fee. 
“1 18.3. The renewal fee shall be paid within twelve (12) months preceding the expiration 
of the period of registration. However, a grace period of six (6) months shall be granted for 
payment of the fees after such expiration, upon payment of a surcharge. 
“118.4. The regulations shall fix the amount of renewal fee, the surcharge and other 
requirements regarding the recording of renewals of registration. 
“118.5. REGISTRATION OF A LAYOUT-DESIGN UNDER THIS LAW SHALL 
BE VALID FOR A PERIOD OF TEN (10) YEARS FROM THE DATE OF 
COMMENCEMENT OF PROTECTION WITHOUT RENEWAL. PROTECTION 
OF A LAYOUT-DESIGN UNDER THIS ACT SHALL COMMENCE: 


“(A) 
ON THE DATE OF THE FIRST COMMERCIAL EXPLOITATION, 
ANYWHERE IN THE WOFUD, OF THE LAYOUT-DESIGN BY OR WITH THE 
CONSENT OF THE RIGHT HOLDER: PROUDED, THAT AN APPLICATION 
FOR REGISTRATION IS FILED WITH THE INTELLECTUAL PROPERTY 
OFFICE WITHIN TWO (2) YEARS FROM SUCH DATE OF FIRST 
COMMERCIAL EXPLOITATION; OR 
“(B)ON THE FILING DATE ACCORDED TO THE APPLICATION FOR THE 
REGISTRATION OF THE LAYOUT-DESIGN IF THE LAYOUT DESIGN HAS 
NOT BEEN PREVIOUSLY EXPLOITED COMMERCIALLY ANYWHERE IN 
THE WORLD. 
“SEC. 1 19. 
Application of Other Sections and Chapters. - 1 19.1. The following 
provisions relating to patents shall apply mutatis mutandis to an industrial design 
registration: 
“Section 21 
- Novelty; 
“Section24 
- Prior art: 
Provided, That the disclosure is contained in printed 
documents or in any tangible form; 
“Section 25 
- Non-prejudicial Disclosure; 
[Section 27 
- Inventions Created Pursuant to a Commission]; 
“Section 28 
- Right to a Patent; 
“Section 29 
- First to File Rule; 
“SECTION 30- INVENTIONS CREATED PURSUANT TO A COMMISSION; 
“Section 31 
- Right of Priority: Provided, That the application for industrial design 
shall be filed within six (6) months from the earliest filing date of the corresponding 
foreign application; 
“Section 33 
- Appointment of Agent or Representative; 
“Section 5 1 
- Refusal of the Application; 
“Sections 56 to 60 - 
“Chapter VII 
Surrender, Correction of and Changes in Patent; 
- Remedies of a Person with a Right to Patent; 


“Chapter VI11 - Rights of Patentees and Infringement of Patents; and 
“Chapter XI 
- Assignment and Transmission of Rights. 
“119.2. If the essential elements of an industrial design which is the subject of an 
application have been obtained from the creation of another person without his consent, 
protection under this Chapter cannot be invoked against the injured party. 
“119.3. THE FOLLOWING PROVISIONS RELATING TO PATENTS SHALL 
APPLY MUTATIS MUTANDIS TO A LAYOUT DESIGN OF INTEGRATED 
CIRCUITS REGISTRATION: 
“SECTION 28 - 
“SECTION 29 - 
“SECTION 30 - 
COMMISSION; 
“SECTION 33 - 
“SECTION 56 - 
“SECTION 57 - 
“SECTION 58 - 
“SECTION 59 - 
“SECTION 60 - 
‘(CHAPTER VI1 
PATENT; 
“CHAPTER VI11 
RIGHT TO A PATENT; 
FIRST TO FILE RULE; 
INVENTIONS 
CREATED 
PURSUANT 
TO 
A 
APPOINTMENT OF AGENT OR REPRESENTATIVE; 
SURRENDER OF PATENT; 
CORRECTION OF MISTAKES OF THE OFFICE; 
CORRECTION OF MISTAKES IN THE APPLICATION; 
CHANGES IN PATENTS; 
FORM AND PUBLICATION OF AMENDMENT; 
- 
REMEDIES OF A PERSON WITH A RIGHT TO 
- 
RIGHTS OF PATENTEES AND INFRINGEMENT 
OF PATENTS: 
PROVIDED, THAT THE LAYOUT-DESIGN RIGHTS AND 
LIMITATION OF LAYOUT-DESIGN RIGHTS PROVIDED HEREUNDER SHALL 
GOVERN; 
“CHAPTER X - 
COMPULSORY LICENSING; AND 
“CHAPTER XI 
- 
ASSIGNMENT AND TRANSMISSION OF RIGHTS. 


“119.4. RIGHTS CONFERRED TO THE OWNER OF ALL LAYOUT-DESIGN 
REGISTRATION. - THE OWNER OF A LAYOUT-DESIGN REGISTRATION 
SHALL ENJOY THE FOLLOWING RIGHTS: 
“(1) TO REPRODUCE, WHETHER BY INCORPORATION IN AN INTEGRATED 
CIRCUIT OR OTHERWISE, THE REGISTERED LAYOUT-DESIGN IN ITS 
ENTIRETY OR ANY PART THEREOF, EXCEPT THE ACT OF REPRODUCING 
ANY PART THAT DOES NOT COMPLY WITH THE REQUIREMENT OF 
ORIGINALITY; AND 
“(2) TO SELL OR OTHERWISE DISTRIBUTE FOR COMMERCIAL PURPOSES 
THE REGISTERED LAYOUT-DESIGN, AN ARTICLE OR AN INTEGRATED 
CIRCUIT 
IN 
WHICH 
THE 
REGISTERED 
LAYOUT-DESIGN 
IS 
INCORPORATED. 
‘‘119.5. LIMITATIONS OF LAYOUT RIGHTS. - THE OWNER OF A LAYOUT- 
DESIGN 
HAS 
NO 
RIGHT 
TO 
PREVENT 
THIRD 
PARTIES 
FROM 
REPRODUCING, 
SELLING 
OR 
OTHERWISE 
DISTRIBUTING 
FOR 
COMMERCIAL PURPOSES THE REGISTERED LAYOUT-DESIGN IN THE 
FOLLOWING CIRCUMSTANCES: 
“(1) REPRODUCTION OF THE REGISTERED LAYOUT DESIGN FOR PRIVATE 
PURPOSES OR FOR THE SOLE PURPOSE OF EVALUATION, ANALYSIS, 
RESEARCH OR TEACHING; 
“(2) WHERE THE ACT IS PERFORMED IN RESPECT OF A LAYOUT-DESIGN 
CREATED ON THE BASIS OF SUCH ANALYSIS OR EVALUATION AND 
WHICH IS ITSELF ORIGINAL IN THE MEANING AS PROVIDED HEREIN; 
“(3)WHERE THE ACT IS PERFORMED IN RESPECT OF A REGISTERED 
LAYOUT-DESIGN, OR IN RESPECT OF AN INTEGRATED CIRCUIT IN 
WHICH SUCH A LAYOUT-DESIGN IS INCORPORATED, THAT HAS BEEN 
PUT ON THE MARKET BY OR WITH THE CONSENT OF THE RIGHT 
HOLDER, 


“(4)IN RESPECT OF AN INTEGRATED CIRCUIT WHERE THE PERSON 
PERFORMING OR ORDERING SUCH AN ACT DID NOT KNOW AND HAD NO 
REASONABLE GROUND TO KNOW WHEN ACQUIRING THE INTEGRATED 
CIRCUIT OR THE ARTICLE INCORPORATING SUCH AN INTEGRATED 
CIRCUIT, THAT IT INCORPORATED AN UNLAWFULLY REPRODUCED 
LAYOUT-DESIGN: PROVIDED, HOWEVBR, THAT AFTER THE TIME THAT 
SUCH PERSON HAS RECEIVED SUFFICIENT NOTICE THAT THE LAYOUT- 
DESIGN WAS UNLAWFULLY REPRODUCED, THAT PERSON MAY PERFORM 
ANY OF THE SAID ACTS ONLY WITH RESPECT TO THE STOCK ON HAND 
OR ORDERED BEFORE SUCH TIME AND SHALL BE LIABLE TO PAY TO 
THE RIGHT HOLDER A SUM EQUIVALENT TO AT LEAST FIVE PERCENT 
(5%) OF NET SALES OR SUCH OTHER REASONABLE ROYALTY AS WOULD 
BE PAYABLE UNDER A FREELY NEGOTIATED LICENSE IN RESPECT OF 
SUCH LAYOUT-DESIGN; OR 
“(5)WHERE THE ACT IS PERFORMED IN RESPECT OF AN IDENTICAL 
LAYOUT-DESIGN WHICH IS ORIGINAL AND HAS BEEN CREATED 
INDEPENDENTLY BY A THIRD PARTY. 
“SEC. 120. 
Cancellation of Design Registration. - 120.1. At any time during the term 
of the industrial design registration, any person upon payment of the required fee, may 
petition the Director of Legal Affairs to cancel the industrial design on any of the following 
grounds : 
“(a) 
If the subject matter of the industrial design is not registerable within the terms of 
Sections 112 and 113; 
“(b) 
“(c) 
application as originally filed. 
If the subject matter is not new; or 
If the subject matter of the industrial design extends beyond the content of the 


. 
‘‘120.2, Where the grounds for cancellation relate to a part of the industrial design, 
cancellation may be effected to such extent only. The restriction may be effected in the 
form of an alteration of the effected features of the designs. 
“120.3. GROUNDS 
FOR 
CANCELLATION OF LAYOUT 
DESIGN 
OF 
INTEGRATED CIRCUITS. - ANY INTERESTED PERSON MAY PETITION 
THAT THE REGISTRATION OF A LAYOUT-DESIGN BE CANCELLED ON 
THE GROUNDS THAT: 
“(I) 
THE LAYOUT-DESIGN IS NOT PROTECTABLE UNDER THIS ACT; 
“(11) 
THIS ACT; OR 
THE RIGHT HOLDER IS NOT ENTITLED TO PROTECTION UNDER 
“(III) 
WHERE THE APPLICATION FOR REGISTRATION OF THE LAYOUT- 
DESIGN, WAS NOT FILED WITHIN TWO (2) YEARS FROM ITS FIRST 
COMMERCIAL EXPLOITATION ANYWHERE IN THE WORLD. 
“WHERE THE GROUNDS FOR CANCELLATION ARE ESTABLISHED WITH 
RESPECT ONLY TO A PART OF THE LAYOUT-DESIGN, ONLY THE 
CORRESPONDING PART OF THE REGISTRATION SHALL BE CANCELLED. 
“ANY CANCELLED LAYOUT-DESIGN REGISTRATION OR PART THEREOF, 
SHALL BE REGARDED AS NULL AND VOID FROM THE BEGINNING AND 
MAY BE EXPUNGED FROM THE RECORDS OF THE INTELLECTUAL 
PROPERTY OFFICE. REFERENCE TO ALL CANCELLED LAYOUT-DESIGN 
REGISTRATION SHALL BE PUBLISHED IN THE rpo GAZETTE.” 
SEC. 2. Implementing Rules and Regulations. - The Intellectual Property Office may issue 
regulations prescribing details for the implementation of this law. The regulations may, in 
particular, provide for the payment of fees in connection with applications for the 
registration of layout-designs of integrated circuits and matters related thereto, including 
administrative instructions relating to the procedures and other functions of the responsible 
unit duly designated by the Director General. 


SEC. 3. Applicability. - The provisions of this Act shall apply to layout-designs of 
integrated circuits that were commercially exploited anywhere in the world from and after 
January 1998 provided they meet the conditions for protection under this Act. 
SEC. 4. Repealing Clause. - All acts and parts of acts inconsistent herewith are hereby 
repealed or amended accordingly. 
SEC. 5. Separability Clause. - If any provision of this Act or the application of such 
provision to any circumstance is held invalid, the remainder of this Act shall not be 
affected thereby. 
SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its publication in 
two (2) newspapers of general circulation. 
Approved,