SIXTEENTH CONGRESS OF THE 
.REPU.BLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
Intr()duced by Senator LOREN LEGARDA 
EXPLANATORY NOTE 
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This bill seeks to re-establish .the Philippindnventors Commission that will 
serve as the lead agency that Will promote research and. development, provide 
comprehensive support services to-Filipino inventors and protect their inventions. 
Article XIV, Section 10 of the Constitution provides that the State shall give 
priority to research and development, invention, iTInovation, and their utilization 
and to support indigenous, appropriate, and self-reliant scientific and technological 
capabilities, and their application to the country's productive systems and national 
life. Currently, the Technology Application and Promotion- Institute (TAPI) under 
the Department of Science and Technology (DOST) is taking the lead· in 
implementing Republic Act No. 7459/ the law providing incentives to Filipino 
inventors and inventions. RA. No. 7459 only expanded the function of TAPI but had 
difficulties providing the necessary support mechanism that will have a significant 
impact on the sector. 
The'intent of the Constitutional provision to harness local inventions for 
national progress would be advanced further if there would be an agency with the 
appropriate' 'and sufficient mandate, powers and resources to formulate and 
implement programs' that have far-reaching impact. on, the plight of Filipino 
inventors. RA. No. 3850 had created such an agency, the Inventors Commission . 
. However, said Commission wase£fectively abolished by way of Executive Order 
.No. 128. At present, the need for re-instituting an agency suc~ as the Inventors 
Commission becomes ever relevant as the role of science qnd technology is more 
pronounced in. economic development in the Philippines and elsewhere. 
This bill will strengthen the mechanisms for providing the much needed 
support to Filipino inventors by rationitlizing programs for research and 
development, manufacture and market of our inventive ideas, products, processes 
and such other areas of technology development. 
In view of the foregoing, the immediate passage of this bill is sought. 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B.No.~82 
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'13 
JUL -9 119 :;>9 
)2 
RECElVU.\ BY:-~ffr--
Introduced by Senator LOREN LEGARDA 
AN ACT 
CREATING A PHILIPPINE INVENTORS COMMISSION, DEFINING ITS 
POWERS, FUNCTIONS AND DUTIES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines In 
Congress assembled: 
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SECTION 1. Title. -This Act shall be known as the "Inventors and Invention 
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Incentives Acts of 2013." 
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SECTION 2. Declaration o/Policy. -It is hereby declared a policy of the State 
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to give priority to research and development, invention, innovation, and their 
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utilization. The State shall also support indigenous, appropriate, and self-reliant 
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scientific and technological capabilities, and their application to the country's 
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productive systems. 
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Further, the State shall regulate the transfer and promote the adaptation of 
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technology from all sources for the national benefit. It shall encourage the widest 
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participation of private groups, local governments, and conununity-based 
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organizations in the generation and utilization of science and technology. 
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Furthermore, the State shall protect and secure the exclusive rights of 
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scientists, and investors to their intellectual property and creations, particularly 
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when beneficial to the people. 
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SECTION 3. Philippine Inventors Commission. -The Philippine Inventors 
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Conunission is hereby re-established as provided for under Republic Act No. 3850, 
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as amended. The Philippine Inventors Conunission, hereinafter referred to as the 
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Conunission, shall be under the Office of the President of the Republic of the 
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Philippines for the purpose of giving technical, financial, legal and marketing 
assistance to Filipino inventors and their inventions. 
SECTION 4. Functions and Responsibilities. -The Commission shall have 
the following functions, power and duties: 
a) To render technical assistance to inventors by examining their submitted 
inventions to determine their patentability and by helping them prepare their 
patent application, under certain terms and conditions; 
b) To grant financial aid to inventors to enable them to develop, perfect and 
produce their patented inventions or those that are pending patent, under 
certain terms and conditions; 
c) To render legal assistance to inventors by representing them in filling their 
patent application here and/ or abroad and in protecting their patent from 
infringement in patent cases, under certain terms and conditions; 
d) To facilitate access to financial assistance from local and international lending 
institutions for long term loans to enable inventors to manufacture their 
inventions, with only their letters patent as collateral, the amount of loan to 
be granted depending upon the importance and market of their inventions as 
determined by the Commission; 
e) To develop and establish import and export assistance program and help 
inventors find markets for their inventions here and abroad; 
f) To encourage Filipino inventors to promote their inventions by holding 
periodic citations and awards to patented inventions in the Philippines in the 
field of . agriculture, chemistry, commerce, communications, education, 
engineering, fishery, forestry, medicine, national defense, pharmacy, physics, 
public safety and welfare, public works, transportation and other fields of 
science; 
g) To establish and maintain a public research laboratory and experimental 
station where authorized inventors and researchers may avail themselves of 
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its facilities and services for carrying out or perfecting their approved 
inventions and researches: Provided, that the inventor or researcher shall agree 
to give the Commission at least one tenth of all royalties arising from the 
commercialization and market of their ideas, products and processes for the 
use of its facilities to help maintain the public research laboratory and 
experimental station: Provided, further, that the laboratory facilities and 
services of the Department of Science and Technology and other government 
agencies, offices and instrumentalities shall be made available to inventors or 
researchers who may need the same, as recommended by the Commission 
against which the reasonable expenses incurred in such laboratories shall be 
chargeable; 
The determination of royalty shall be based on the existing international 
standards. In case there is no royalty arrangement in the commercialization 
and! or production and market of the assisted ideas, products and processes, 
the inventor or researcher shall give the commission at least five (5) percent of 
the net income derived therefrom. Proceeds from all kinds of assistance 
rendered by the COTIUllission shall accrue to its account and shall be used to 
carry out its objectives and mandate. 
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h) To assist inventors, scientists and researchers in joining international 
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competitions including market development abroad; 
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i) To publish and disseminate information about inventions, research and 
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science in general; and 
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j) To organize creative societies in schools, colleges and universities to promote 
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and encourage creativity among our youth. 
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SECTION 5. Organization. -The Commission shall be composed of a Board 
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of Commissioners organized under a Chairperson to be assisted by four (4) 
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Commissioners appointed by the President. They shall hold office for seven (7) years 
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unless otherwise renewed. Each shall be a Filipino citizen and at least twenty-five 
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(25) years of age. They shall exercise collective decision making as the highest 
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policymaking body of the Commission. The Board of Commissioners shall 


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promulgate and implement rules and regulations necessary to perform the functions 
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of the Commission to carry out the provisions of this Act. 
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The Commission shall have the following standing departments: Intellectual 
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Property and Legal Department, Administrative Department, Research and 
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Development Department, Project Development and Business Consultancy 
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Department, Record and Information Department. The Commission, with the 
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approval of the President, may create additional units deemed necessary by the 
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Board of Commissioners. 
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SECTION 6. Invention Zone. -The Commission, with the approval of the 
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President, may select a suitable location on any public land owned by the National 
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Government for the site of its public research laboratory, experimental station and 
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manufacturing plants/factories or branch thereof with housing facilities for the 
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inventors and researchers working therein to be known as Invention City and/or 
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Invention Economic Zone. Within three (3) months from receipt of the choice of the 
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Commission duly approved, the Director of Lands shall cause the chosen site to be 
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surveyed, delimited and transferred to the Commission to be placed under its 
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exclusive jurisdiction and control. 
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SECTION 7. Consolidation of R.A. 7459. -
All functions, duties and 
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responsibilities referring to the promotion and development of inventions conferred 
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upon the Technology Application and Promotion Institute and/ or Department of 
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Science and Technology under Republic Act No. 7459 are hereby transferred to the 
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Commission which shall hereafter exercise those functions. All real and personal 
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properties, moneys, assets, bequests, devices and the like accumulated in the 
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exercise of those functions in implementing the said Acts shall als.o be transferred to 
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the Commission: Provided, that the research and development (R&D) fund under 
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Section 7 of R.A. No. 7459, the Invention Development Assistance Fund, shall be 
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increased and provided under the General Appropriation Act in the initial amount 
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of Five Hundred Million Pesos (P500,OOO,OOO.OO) pursuing the global average of 2% 
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of the gross national product (GNP) allocated for research and development 
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activities. 
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SECTION 8. Exemption from Taxes and Fees. - To promote, encourage and 
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accelerate the manufacture and sale of home grown and/ or adopted inventions or 
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technologies, the inventors and their inventions shall be exempted from all kinds of 
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taxes effective from the date of the tax exemption approval, such as the following: 
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(a) 
Exemption from the payment of direct and indirect taxes, customs 
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duties exercise taxes, import value added taxes, and other charges on import of 
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machinery/equipment, parts and materials and other components which shall be 
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actually, 
directly 
and 
exclusively 
used 
for 
the 
manufacturer 
of 
the 
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invention/technology; 
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(b) 
Exemption from the payment of fees, and such other fees required for 
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the renewal of the patent fees, and such other fees required for the renewal of patent 
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certificate by the Intellectual Property Office, exemption from the payment of license 
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and business permit fees, inspection fees, and realty taxes on machinery and 
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equipment used 
for 
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development, 
manufacture and 
sale 
of their 
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invention/technology; all of which tax exemption privileges shall be extended to 
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their legal heir, or assignee/licensee. 
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SECTION 9. Exemption from Donor's Tax. - All donations and grants to the 
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Commission shall be tax-exempt and deductible in full from the donor's income tax 
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returns when evidenced by a certificate duly issued the Commission. Any person 
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who evades or defeats, or attempts to evade of defeat in any manner any tax 
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imposed by law by availing himself of the provisions of this section through fraud 
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or misrepresentation shall be punished by a fine not more than Fifty Thousand 
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Pesos (P50,OOO.OO) or imprisonment not exceeding one (1) year or both, in the 
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discretion of the court. In case the violator is a corporation or association, the 
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president or general manager thereof shall be criminally liable, without prejudice to 
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the criminal responsibility of the member, officer or employee thereof committing 
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such violation. 
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SECTION 10. Constitution of Board of Commissioners. - The Board of 
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Commissioners shall be constituted by the President within three months from the 
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approval of this Act to formulate the implementing rules and regulations and 
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organize the Commission. 
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SECTION 11. Appropriations. -There is hereby appropriated the sum of One 
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Hundred Fifty Million Pesos (P150,OOO,OOO.OO) to fund the initial year of the 


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Commission's operation. Further, it is hereby authorized to be appropriated 
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annually such sums as may be necessary to carry out the provisions and objectives 
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of this Act to be included under the general appropriations for the Office of the 
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President: Provided, that these sums shall not be less than the original appropriation 
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of one hundred fifty million pesos. 
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SECTION 12. Repealing Clause. -. All laws, decrees, orders, rules and 
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regulations or portions thereof inconsistent with the provisions of this Act are 
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hereby repealed, amended or modified accordingly. 
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SECTION 13. Separability Clause. - Should any part or provision of this Act 
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be declared unconstitutional or invalid, other parts or provisions hereof not 
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otherwise affected thereby shall remain in full force and effect. 
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SECTION 14. Effectivity. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
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Approved,