Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 1616

INTRODUCED BY REP. MAXIMO JR. Y. DALOG

EXPLANATORY NOTE

Article XIV, Section 17 of the 1987 Constitution states:

The State shall recognize, respect, and protect the rights of indigenous
cultural communities to preserve and develop their cultures, traditions,
and institutions. It shall consider these rights in the formulation of
national plans and policies.

Pursuant to this mandate, Congress passed Republic Act No. 9371 otherwise
known as “The Indigenous Peoples Rights Act of 1997.” However, said law does not
have a specific provision for the protection of indigenous knowledge or creative
intellectual activity and their manifestations.

As a consequence, when counterfeit Cordillera-woven blankets, garments and
cloth from associated with the Indigenous Cultural Communities (ICCs) of some ethno-
linguistic groups in the Cordillera Administrative Region flooded the local markets in
2021, local weavers despite their protests were helpless with the absence of a law
protecting their community intellectual rights.

This bill thus seeks to prevent further abuses and exploitation and provide the
needed legal protection that is not afforded in the law to ICCs and Indigenous Peoples
as regards their indigenous knowledge or creative intellectual activity and their
manifestations.

Towards this end, the immediate consideration and approval of this proposed
measure is earnestly sought.

MAXIMO JR. Y. Di


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bit No. 1616

INTRODUCED BY REP. MAXIMO JR. Y. DALOG

AN ACT ESTABLISHING A SYSTEM PROTECTING THE COMMUNITY
INTELLECTUAL RIGHTS OF INDIGENOUS CULTURAL
COMMUNITIES/INDIGENOUS PEOPLES

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 "Community
Intellectual Rights of Indigenous Cultural Communities/indigenous Peoples
Protection Act".

SEC. 2. Declaration of Principles and Policy. \t shall be a declared
policy of the State to recognize, respect, protect, and safeguard the traditional
cultural heritage of indigenous cultural communities/indigenous peoples
(ICCs/IPs), both tangible and intangible; preserve and protect their culture,
traditions and institutions; and to recognize and support traditional knowledge
(TK), traditional arts and artisans for their contribution to their cultures, national
heritage, and social and economic development.

Towards this end, the state shall take measures to protect and guarantee
respect for the cultural integrity of ICCs/IPs, and their right to practice and
revitalize their own cultural traditions and customs. The state shall preserve,
protect, and develop the past, present, and future manifestations of their
cultures as well as the right to the restitution of cultural, intellectual, religious,
and spiritual property taken without their free, prior and informed consent (FPIC)
or in violation of their laws, traditions, and customs.

SEC. 3. Definition of Terms. For purposes of this Act, the following
terms shall be defined as follows:


a) “Commission” shall refer to the National Commission on Indigenous
Peoples (NCIP);

b) "Community Intellectual Rights" shall refer to the rights of indigenous
cultural communities/indigenous peoples (ICCs/IPs) to own, control,
develop, protect, and enjoy their indigenous knowledge or creative
intellectual activity and their manifestations, such as but not limited to:

1. archeological and historical sites, artifacts, ceremonies, oral traditions,
visual and performing arts and literature, as well as religious and
spiritual properties;

2. science, technologies, human and other genetic resources, including
derivatives of these resources, seeds, medicines, health practices,
vital medicinal plants, animals and minerals, resource management
systems, agricultural technologies, knowledge of the properties of
fauna and flora, scientific discoveries; and

3. language, script, histories, and teaching and learning systems;
which are distinctively associated with and integral to the cultural and
social identity of the ICCs/IPs or groups of ICCs/IPs generated,
preserved, and transmitted from one generation to another either orally
or by practice, and are constantly evolving, developing, and being
recreated within the community, and such other new indigenous
knowledge or creative intellectual activity which are identifiable and
adopted as community owned.

c)

“Cultural agencies" shall refer to the following national government
agencies with their specific areas of responsibility: National Commission
for Culture and the Arts (registry of cultural property); National Museum
of the Philippines (inventory); National Library of the Philippines (books);
National Historical Commission of the Philippines (Philippine history);
National Archives of the Philippines (documents); Cultural Center of the
Philippines (culture and arts); and Komisyon sa Wikang Filipino
(language);

d) "Derivative" shall refer to any naturally occurring biochemical compound
resulting from the genetic resources or metabolism of biological or
genetic resources even if it does not contain functional units of heredity;

e) “Derivative work" shall refer to the infusion or incorporation of variations
on a community intellectual right that would result in a derivative work or
craft, which is one that is primarily a new work, but incorporates
preexisting works or previously published material. A derivative work
must be different enough from the original to be regarded as a “new
work,” or must contain a substantial amount of new material. Making
minor changes or additions of little substance to a pre-existing work will
not qualify the work as a new version;


f) "Genetic material” shall refer to any material of plant, animal, microbial
or other origin containing functional units of heredity;

g) "Genetic resources" shall refer to genetic material of actual or potential
value;

h

“Misappropriation” shall refer to any access or use of community
intellectual rights of the indigenous peoples or indigenous cultural
communities without their free, prior and informed consent or approval
and involvement and, where applicable, without mutual agreed terms, for
whatever purpose, be it commercial, research, academic, and technology
transfer, in violation of customary law and established practices
governing the access or use of such community intellectual rights;

i) "Misuse" shall refer to any act wherein the user had secured prior
consent from the ICCs/IPs for the use of the community intellectual rights,
however, the same is used in a manner violative of customary laws and
established practices, or those contrary to or beyond what was agreed
upon;

j) “Registry” shall refer to the registry of community intellectual rights to be
established and managed by the Commission;

k) “Royalty” shall refer to the fair and equitable sharing of benefits as
provided in the mutually agreed terms (MAT) in the memorandum of
agreement (MOA) after the conduct of the FPIC process or to the
payment to the owner of the registered cultural property for the right to
use their property;

|) “Traditional Knowledge” shall refer to knowledge originating from
ICCs/IPs that may be dynamic and evolving and is the result of
intellectual activity, experiences, spiritual means, or insights in or from a
traditional context, which may be connected to land and environment,
including know-how, skills, innovations, practices, teaching or learning;
and

m) "Traditional Cultural Expressions" shall refer to any form in which
traditional culture practices and knowledge are expressed by ICCs/IPs,
in or from a traditional context, and may be dynamic and evolving and
comprise verbal forms, musical forms, expressions by movement,
tangible or intangible forms of expression, or combinations thereof;

SEC. 4. Coverage of Protection. The ICCs/IPs shall have full
ownership, control, and protection from misappropriation, misuse, and false


designation of origin of the community intellectual rights of ICCs/IPs, and they
shall have the right to the restitution of cultural, intellectual, religious, and
spiritual property taken without their free, prior and informed consent or in
violation of their laws, traditions, and customs. The protection of the community
intellectual rights of the ICCs/IPs shall also cover their economic and moral
interests to be enumerated in the implementing rules and regulations of this Act.

SEC. 5. Implementing Body. The National Commission on Indigenous
Peoples (NCIP) shall implement the provisions of this Act.

SEC. 6. Promotion of Community Intellectual Rights. The
Commission shall undertake activities to promote intellectual rights of ICCs/IPs,
including building the capacity of ICCs/IPs to enhance the protection and
management of their rights.

SEC. 7. Registry. The Commission shall establish and maintain a
registry in which IKSPs shall be registered for the purpose of this Act and which
shall be recorded in the order of their registration.

The registration of community intellectual rights shall be filed before the
nearest NCIP Office. The application for registration shall contain the pertinent
information necessary for examination of the community intellectual rights
which shall include, but not limited to, the following information:

a) Identity of ICCs/IPs community intellectual right holder;

b) Location;

c) Detailed description of the community intellectual right registered;

d) Disclosure of agreements/partnerships with private or public
individuals/entities for the use of their community intellectual rights, if any.

Enrollment of community intellectual rights in the Registry shall be prima
facie evidence of community intellectual rights of the ICCs/IPs.

The State recognizes the existence of community intellectual rights of
ICCs/IPs without need of prior approval from any licensing agency or other
undertaking, including registration.

SEC. 8. Coordination by the NCIP with the NCCA and IPOPHL on the
Registry of Community Intellectual Rights, Cultural Property, and
Intellectual Property Rights. The Commission, together with the National
Commission for Culture and the Arts and the IPOPHL shall establish a system
of coordination that will be consistent with the policy of this Act, including the
streamlining of the procedures for the registration of community intellectual
rights. They may jointly or individually promulgate the appropriate mechanisms
to ensure the effective implementation of the policies and objectives of this Act,
and they shall undertake activities geared toward building the capacity of


ICCs/IPs to enhance the protection and management of their community
intellectual property rights.

SEC. 9. Period of Ownership. The community intellectual rights of
ICCs/IPs shall continue indefinitely to be their exclusive intellectual right and
shall not expire and shall not become part of the public domain.

SEC. 10. Original Rights of Ownership. Though the State recognizes
the dynamic evolution of community intellectual rights, the ICCs/IPs shall retain
these intellectual rights as well as derivative works.

SEC. 11. Royalties. The concerned ICCs/IPs are entitled to royalties and
other benefits as may be negotiated by the parties. When the community
intellectual rights are used commercially, the royalty payment due the
concerned ICCs/IPs shall, in no case, be less than five percent (5%) of the gross
proceeds of the sale.

SEC. 12. Free, Prior and Informed Consent (FPIC). The use of
\CCs/IPs community intellectual rights shall be governed by the provisions of
Republic Act No. 8371 or the Indigenous Peoples Rights Act of 1997, its
Implementing Rules and Regulations, and guidelines on Free, Prior and
Informed Consent.

SEC. 13. Role of Government Agencies and Local Government
Units. All government agencies, government-owned and controlled
corporations, public educational institutions, local government units (LGUs) and
other entities shall endeavor to promote ICCs/IPs community intellectual rights.
They shall endeavor to develop, produce and publish information education
campaign materials on community intellectual rights, the importance of
registration, and the prohibited acts under this Act.

For this purpose, all national government agencies and LGUs shall
allocate funds for the implementation of programs, projects and activities that
will recognize, respect, promote and protect the rights of the ICCs/IPs, including
the protection and promotion of their community intellectual rights pursuant to
IPRA and this Act.

SEC. 14. Prohibited Acts. Under this Act, the following are prohibited:

a

Misappropriation — any access, infringement, copying, or use of
community intellectual rights of the indigenous cultural
communities/indigenous peoples without their free, prior and informed
consent or approval and involvement and, where applicable, without
mutual agreed terms, for whatever purpose, be it commercial, research,
academic, and technology transfer.


b) Misuse — any act wherein the user had secured prior consent from the
ICCs/IPs for the use of the community intellectual rights, however, the
same is used in a manner violative of national laws or customary laws
known to the user, and established practices, or those contrary to or
beyond what was agreed upon during the FPIC process.

¢)

False Designations of Origin — any act which will likely cause confusion
or mistake, or cause deception as to the affiliation, connection, or
association of such ICCs/IPs IKSPs, including, but not limited, to the
following:

1. false designation of an origin, false or misleading description of fact,
or false or misleading representation of fact; and

2. Misrepresentation of the nature, characteristics, qualities, or
geographic origin of an ICCs/IPs' IKSP.

SEC. 15. Limitations on Community Intellectual Rights.
Notwithstanding the protection given to the community intellectual right of
ICCs/IPs, the following shall not be prohibited:

a) Government use in cases of national emergencies, national security,
health, or the development of vital sectors in the national economy as
determined by the National Economic and Development Authority
(NEDA); and

b) Acts necessary to address the needs of non-commercial use, including
teaching and research for educational purposes, personal or private use,
criticism or review, reporting of current events, use in the course of legal
proceedings, the making of recordings and reproductions of traditional
knowledge or cultural expressions for inclusion in an archive or inventory
exclusively for the purposes of safeguarding knowledge or cultural
heritage, and incidental uses.

Provided, that the relevant community's customary laws, protocols, and
practices will be considered and the relevant community shall be acknowledged
as the source of the traditional knowledge or cultural expressions: Provided,
further, That researches affecting the ICCs/IPs, their IKSPs, including their
community intellectual right and their ancestral domains of which the ICCs/IPs
themselves are the primary source of data, shall require consultations with the
relevant ICCs/IPs, including undertaking acts to obtain the free, prior and
informed consent: Provided, finally, That these acts do not conflict with the
interests of, or are not derogatory to, the |CCs/IPs and do not unduly prejudice
the implementation of the rights of ICCs/IPs.

SEC. 16. Penalties.


A. For Administrative Penalties. - After the conduct of a formal
investigation and following due process, the Commission, may impose
‘one (1) or more of the following administrative penalties:

a) Issuance of a cease-and-desist order which shall specify the acts that
the respondent shall cease and desist from and shall require him to
submit a compliance report within a reasonable time which shall be
fixed in the Order;

b) The acceptance of a voluntary undertaking of compliance or
discontinuance as may be imposed.

c) The condemnation or seizure of products which are subject of the
offense. The goods seized hereunder shall be disposed of in such
manner as may be deemed appropriate by the Commission;

d) The forfeiture of paraphernalia and all real and personal properties
which have been used in the commission of the offense,

e) The imposition of administrative fines in such amount deemed
reasonable by the Commission,

f) The cancellation of any permit, license, authority, or registration which
may have been granted by the Commission, or the suspension of the
validity thereof for such period of time as the Commission may deem
reasonable;

g) The withholding of any permit, license, authority or registration which
is being secured by the respondent from the Commission;

h) The assessment and award of damages;

i) Censure;

j) Other analogous penalties or sanctions.

B. For criminal penalties. -Independent of the civil and administrative
sanctions imposed by law, any person found guilty in a criminal action for
violating any provisions of this Act, shall be imprisoned for not less than
nine (9) months but not more than nine (9) years or a fine of not less than
One hundred thousand pesos (P100,000) nor more than Five hundred
thousand pesos (P500,000), or both such fine and imprisonment upon
the discretion of the court.

C. If a person is found to have committed any of the prohibited acts and is
found to be in good faith, or one who is considered as an innocent
infringer, the community intellectual rights holders shall be entitled as
against such infringer to an injunction against future use, payment of
reasonable damages, and/or such other sanctions provided in this Act.

SEC. 17. Administrative Adjudication of Cases in Violation of This
Act. The Commission, in addition to the jurisdiction and enforcement powers
given to it under Republic Act No. 8371 or the Indigenous Peoples Rights Act
of 1997, shall have the following functions and powers to adjudicate
administrative cases in violation of this Act:


a) Exercise original jurisdiction over complaints for violations of the
community intellectual rights of the ICCs/IPs;

b) Issue a cease-and-desist order which shall specify the acts that the
respondent shall cease and desist from and shall require the
respondent to submit a compliance report within a reasonable time
which shall be fixed in the order;

c) Issue such other provisional remedies as provided under the Rules of
Court;

d) After a formal investigation and following due process, issue
appropriate sanctions and penalties for the violation of community
intellectual rights.

The Commission shall promulgate the rules and procedures to govern
the adjudication of violations of community intellectual rights of |CCs/IPs.

The final decision or order of the Commission shall be immediately
executory even pending appeal. The process of appeal in the Commission in
the adjudication of administrative complaints involving CIRs shall be provided
in the rules of procedure.

SEC. 18. Criminal Action for community intellectual rights violation.
If the prohibited acts are repeated by the violator or by anyone in connivance
with him, the offenders shall, without prejudice to the institution of a civil and
administrative action for damages, be criminally liable therefor. However, if the
act committed is done with malice, the element of repetition is not required to
institute the criminal action.

The criminal action shall be filed with the proper court. The offense shall
prescribe in five (5) years from date of the commission thereof.

SEC. 19. Correction of Mistakes of the Commission. The Commission
shall have the power to correct, without fee, any mistake in the entry of data
during the community intellectual rights processing of registration incurred
through the fault of the Commission when clearly disclosed in the records
thereof, to make the community intellectual rights application and registration
conform to the records.

SEC. 20. Correction of Mistake in the Application. On request of any
interested person and payment of the prescribed fee, the Commission is
authorized to correct any mistake in the community intellectual rights application
of a formal and clerical nature, not incurred through the fault of the Commission.

SEC. 21. Creation of Offices and Plantilla Positions. The Commission
shall create offices and corresponding plantilla positions necessary for the
implementation of the provisions of this Act.


SEC. 22. Appropriations. For the initial implementation of this Act, the
amount of fifty million pesos (Php 50,000,000.00) is hereby appropriated and
shall be sourced from the President's Contingent Fund. Funds for the
‘succeeding years shall be included in the General Appropriations Act.

SEC. 23. Implementing Rules and Regulations (IRR). The
Commission, in consultation with other cultural agencies, IPO-PHIL, the
Palawan Council on Sustainable Development, the Department of Environment
and Natural Resources, the Department of Agriculture, the Philippine Institute
of Traditional and Alternative Health Care (PITAHC), civil society organizations,
and other relevant government agencies, shall promulgate the IRR of this Act,
including, but not limited to CIR belonging to several ICCs/IPs, mechanisms for
the registry, positive and defensive protection of CIR, treatment of derivative
works, validation, dispute settlement/resolution, and rules of procedure, within
one hundred and twenty (120) days after the effectivity of this Act

SEC. 24. Repealing clause. The provisions of existing laws, to the extent
that they are inconsistent with this Act, are hereby repealed or amended
accordingly.

SEC. 25. Separability clause. If, for any reason, any part or provision of
this Act is declared invalid or unconstitutional, the parts or provisions not
affected thereby shall remain in full force and effect.

SEC. 26. Effectivity clause. This Act shall take effect fifteen (15) days

following its publication in the Official Gazette or in two (2) newspapers of
general circulation, whichever comes first.

Approved,