Seventeenth Congress
Third Regular Session

HOUSE BILL No, 8610

Introduced by Representative Rodante D. Marcoleta

EXPLANATORY NOTE

This bill seeks to expand the coverage of, and impose stiffer penalties for,
the crime of revelation of secrets punished underArticles 291 and 292 of Act No.
3815, as amended, otherwise known as the “Revised Penal Code.”

At present, there are special laws which provide penalties for unauthorized
disclosure of privileged communication or confidential information. Articles 291
and 292 of the Revised Penal Code provide for the penalties for unauthorized
disclosure of industrial trade secrets. However, because of the moderate penalty
imposed for the crime of revelation of secrets, an offender may not be deterred to
divulge trade secrets or compromise confidential information in exchange for
monetary considerations much larger than the fine imposed under existing law.

The concept of confidentiality refers to a duty of an individual to refrain
from sharing confidential information with others, except with the express
consent of the other party or when ordered by a competent court. There are
existing laws and policies which provide exceptional circumstances in which a
professional, such as a doctor or a lawyer, may disclose information about a
patient or client.

However, there are situations wherein laws on trade or operational secrets
may be deemed confidential by the use of a contract or agreement commonly
known as confidentiality agreement or “non-disclosure agreement.” Parties to a
confidentiality agreement are bound by law to strictly follow the provisions of
the contract. If a party breaches the agreement, the party may be subject to
monetary penalties. The amount of such monetary penalties would depend on the
damage caused by the breach. In some cases, a breach of the non-disclosure
agreement could also result in termination from employment or in other
consequences as may have been agreed in the non-disclosure agreement.


This bill therefore expands the coverage for the crime of revelation of
secrets or sensitive information by imposing penalties not only upon the erring
manager or employee but also upon any director, partner, officer or worker who
might have learned the confidential business, financial and technical information
or secrets of his partner, principal or employer, and reveal the same to another
person either for profit or for personal gain or advantage. Likewise, under the
proposed measure, stiffer penalties for committing these crimes are imposed upon
the aforementioned parties.

In view of the foregoing, approval of this bill is earnestly sought.

=e,
RODA! D. MARCOLETA



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Seventeenth Congress
Third Regular Session

HOUSE BILL No. _8610

Introduced by Representative Rodante D. Marcoleta

AN ACT
EXPANDING THE COVERAGE OF, AND IMPOSING STIFFER
PENALTIES FOR, THE CRIME OF REVELATION OF SECRETS,
AMENDING FOR THE PURPOSE ARTICLES 291 AND 292 OF ACT NO.
3815, AS AMENDED, OTHERWISE KNOWN AS THE “REVISED PENAL
CODE”

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

SECTION 1. Article 291 of Act No. 3815, as amended, is hereby further
amended to read as follows:

“ART. 291. Revealing Secrets with Abuse of Office. — The
penalty of [atreste-mayer] PRISION CORRECCIONAL and a
fine of not [exeeeding] LESS THAN One hundred thousand pesos
(P100,000.00) BUT NOT MORE THAN SIX HUNDRED
THOUSAND PESOS (P600,000.00), OR BOTH, AT THE
DISCRETION OF THE COURT, shall be imposed upon any
DIRECTOR, manager, PARTNER, OFFICER,

CONTRACTING PARTY, employee or [servant] WORKER


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who, in such capacity, shall learn the CONFIDENTIAL
BUSINESS, — FINANCIAL, TECHNICAL AND/OR
CLASSIFIED INFORMATION OR secrets of his PARTNER,
principal or [master] EMPLOYER and shall reveal such secrets

AND INFORMATION.”

SEC. 2. Article 292 of the same Act is hereby amended to read as follows:

PIL 3 7a Ph Revelation of _ COMMERCIAL,
INSTITUTIONAL, MANUFACTURING, Industrial
INFORMATION OR TRADE Secrets. — The penalty of [prision
eorreecional] PRISION MAYOR in its minimum and medium
periods and a fine not [exeeeding] LESS THAN One hundred
thousand pesos (P100,000.00) BUT NOT MORE THAN SIX
HUNDRED THOUSAND PESOS (P600,000.00), OR BOTH,
shall be imposed upon the person in charge, FINANCIAL
OFFICER, AGENT, OR employee [er—werkmen] of any
COMMERCIAL, manufacturing, [or] industrial,
INSTITUTIONAL OR TRADE establishment who, to the
prejudice of the owner, PRINCIPAL, OR SHAREHOLDERS
thereof, shall reveal the CONFIDENTIAL FINANCIAL,
TECHNICAL, COMMERCIAL, OR TRADE secrets AND
INFORMATION of the industry of the latter.” THE SAID

PENALTY SHALL ALSO APPLY TO INCIDENTS OR


SITUATIONS WHERE CONTRACTING PARTIES SHALL

DIVULGE CONFIDENTIAL AND/OR _ SENSITIVE

OPERATIONAL INFORMATION FURNISHED BY ONE

PARTY TO THE OTHER ON ACCOUNT OR PURSUIT OF

THEIR CONTRACT, THE NATURE OF WHICH IS BOUND

BY NON-DISCLOSURE AGREEMENT.”

SEC. 3. All laws, presidential decrees, executive orders, rules and
regulations, or parts thereof which are inconsistent with any of the provisions of
this Act are hereby repealed or amended accordingly.

SEC. 4. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,