• 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S, No. 
1196 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 2, Section 20 provides: 
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SEC. 20. The State recognizes the indispensable role of the private sector, 
encourages private enterprise, and provides incentives to needed investments. 
Throughout our history, the Philippines as a nation has been blessed by great minds. All 
over the world, countless Filipinos have won and have continually been recognized for their 
ingenuity. However, we currently do not have a solid program to recognize the achievement of 
our countrymen in research and development here in our country. Unfortunately, our inventors 
and innovators had to look elsewhere to gain recognition. This leads to our inventions being 
claimed by the foreign countries that recognized them. 
We need to establish a recognition program that will, encourage om inventors and-
innovators to develop new products and technologies that can be produced and exported from 
our country. This would not only help our economy, but would once again give our local minds 
their due for their countless achievements in the field of research and development. 
This bill seeks to mandate the Department of Trade and Industry to establish a National 
Innovation Prizes Board who shall spearhead a program to solicit participation from various 
sectors of our country, encourage a competitive research and development drive and recognize 
and reward the best new inventions and innovations of our countrymen.' 
• This bill was originally filed in the Fourteenth Congress, Second Regular Session. 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
13.AlIi -1 P 4:40 
SENATE 
S. No. 
1196 
Introduced by Senator Miriam Defensor Santiago 
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mAcr 
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TO ESTABLISH A PROGRAM TO AWARD INNOVATION PRIZES TO INDIVIDUALS 
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AND ENTITIES FOR RESEARCHING AND DEVELOPING INNOVATIVE 
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TECHNOLOGIES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - This Act shall be Imown as the "Pinoy Innovator Act." 
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SECTION 2. Definition of Terms. - The purposes of this Act the term: 
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A. 
ADMINISTERING ENTITY - means an entity with which the Secretary enters 
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into an agreement under Section II. 
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B. 
COMPETITION -
means a competition for an innovation prize under the 
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program described in Section 5. 
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C. 
INNOVATION PRIZE - means a prize awarded to a participant who wins a 
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competition. 
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D. 
PARTICIPANT - means an individual or entity that participates in a competition. 
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E. 
SECRETARY - means the Secretary of Trade and Industry. 
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SECTION 3. National Innovation Prizes Board. - The Secretary shall establish in the 
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Department of Trade and Industry a National Innovation Prizes Board (referred to in this Act as 
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the "Board"). The Board shall be composed of noted individuals, appointed by the Secretary, 
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from both public and private sector whose quaiffication shalf be determined by the Secretary to' 
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carry out the purposes of this Act. The term of each member shall be no more than three years. 
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SECTION 4. Purposes. - The purposes of the Board are as follows: 
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prizes; 
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A. 
B. 
C. 
D. 
E. 
F. 
To develop and administer the program described in Section 5; 
To select the research topics for competitions; 
To establish the rules of the competitions and the criteria for winning innovation 
To determine the amount of the innovation prize for each competition; 
To certifY the winners of the competitions; and 
To determine the annual funding requirement for each competition. 
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SECTION 5. Innovation Prizes Program. - The Board shall carry out a program of 
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competitions to award innovation prizes to eligible individuals and entities to advance the 
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research, development, and commercial application of innovative technologies. 
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SECTION 6. Eligible Individuals or Entities. - An "'eligible individual or entity" is an 
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individual, a university, or a small or large business that complies with the requirements of 
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paragraph (2). 
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SECTION 7. Minimum Requirementsfor Eligibility. - An eligible individual or entity: 
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A. 
shall have complied with such eligibility requirements for participation in a 
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competition as the Board may establish; 
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B. 
in the case of a private entity, shall be incorporated in and maintain a primary 
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place of business in the Philippines; 
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C. 
in the case of an individual, whether participating in the program singly or in a 
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group, shall be a citizen of, or an alien lawfully admitted for permanent residence in, the 
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Philippines; and 
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D. 
may not be-
1. a government entity, such as a government funded research and development 
center or a government-owned, contractor-operated laboratory; 
2. an entity in which a member ofthe board has interest in; 
3. a relative of the member of the board within fourth degree of consanguinity; 
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4. a public official or employee acting within the scope of his office or 
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employment; or 
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5. a public official or employee of a national laboratory acting within the scope 
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of his office or employment. 
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SECTION 8. Development o/the Program. - Not later than 120 days after the date of the 
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enactment of this Act, the Secretary shall prepare and submit to the appropriate committees in 
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the Senate and the House of Representatives a plan for implementing the program described in 
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Section 5 that includes-
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A. 
a description of how the research topics for competitions and the criteria for 
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awarding the innovation prizes will be determined; 
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B. 
C. 
D. 
the terms and conditions of the competitions; 
the time frame for the award of innovation prizes; and 
a description of the plans of the Secretary to partner with nonprofit organizations 
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or government agencies to sponsor competitions or to outsource administration of competitions 
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to nonprofit organizations under Section 11. 
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SECTION 9. Awards. - The Board shall determine the amount of each innovation prize 
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for each competition and may elect to award only a first place prize or to award first, second, and 
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third place prizes. 
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SECTION 10. Advertising. - The Board shall advertise each competition widely to 
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encourage broad participation in each competition, including by individuals, universities,. and· 
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large and small businesses (including businesses owned or controlled by socially and 
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economically disadvantaged persons). The advertisements shall include, among other 
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information, the subject of the competition, the duration of the competition, the eligibility 
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requirements for participation in the competition, the process for participants to register for the 
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competition, the amount of the innovation prize, and the criteria for awarding the innovation 
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prize. 
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SECTION II. Administering Competitions. - The Board may enter into an agreement 
with a private, nonprofit organization to administer competitions. The duties of the administering 
entity under the agreement shall include--
A. 
advertising competitions and the results of competitions; 
B. 
raising funds from private entities and individuals to pay for administrative costs 
of competitions and to contribute to cash innovation prizes; 
C. 
working with the Board to develop the criteria for selecting winners III 
competitions, based on goals provided by the Secretary; 
D. 
determining, in consultation with the Board, the appropriate amount of each 
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innovation prize to be awarded; 
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E. 
selecting judges for competitions using criteria developed in consultation with the 
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Board; and 
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F. 
preventing the unauthorized use or disclosure of the intellectual property, trade 
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secrets, and confidential business information of participants. 
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SECTION 12. Funding. - Innovation prizes awarded under the program described in 
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subsection (a) shall consist of-
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A. 
B. 
C. 
funds authorized to be appropriated under section 20; and 
any funds raised by the administering entity under Section II (B). 
any other funds which may be accepted by the Secretary from other government 
agencies for innovation prizes. 
SECTION 13. Funds from Other Entities. - The Board is authorized to enter into 
agreements with other entities, including corporations, nonprofit organizations, and other 
government agencies, to offer j oint innovation prizes if-
A. 
the joint innovation prize supports the purposes of this Act; 
B. 
the entity offering additional funds agrees to deposit the funds into a designated 
escrow account; and 
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C. 
the Board retains full 'authority over the competition and the awarding of the cash' 
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innovation prizes. 
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SECTION 14. Prohibition on Special Consideration. - The Secretary may not give any 
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special consideration to any private sector entity or individual in return for a donation to the 
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administering entity to fund a competition. 
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SECTION IS. Announcement of Prizes Contingent on Funding. - The Secretary may not 
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advertise or publish any prize until all the funds necessary to pay the innovation prize have been 
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appropriated or committed in writing. 
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SECTION 16. Waiver of Liability. - The Secretary may require participants to waive 
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claims against the government and the administering entity (except claims for willful 
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misconduct) for any injury, death, damage, or loss of property, revenue, or profits arising from 
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participation in a competition. 
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The Secretary may not require a participant to waive claims against the administering 
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entity arising out of the unauthorized use or disclosure by the administering entity of the 
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intellectual property, trade secrets, or confidential business information of the participant. 
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SECTION 17. Insurance, - The Secretary may require liability insurance or,demonstrate. 
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financial responsibility, in amounts determined by the Secretary, for claims by-
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A. 
a third party for death, bodily injury, or property damage or loss resulting from an 
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activity carried out in connection with participation in a competition; and 
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B. 
the government for damage or loss to government property resulting from 
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participation in a competition. 
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SECTION 18. Intellectual Property. - The intellectual property of participants in the 
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competitions shall be protected. The Board shall provide for assistance in securing the 
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intellectual property rights for qualified participants. The Board shall also provide for a 
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convenient way for participants to ascertain whether there are any preexisting intellectual 
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property rights that conflict with theirs, 
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SECTION 19, Report. - Not later than one year after the date of the enactment of this 
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Act, and annually thereafter, the Secretary shall submit to the appropriate committees in the 
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Senate and the House of Representatives a report describing the activities of the program 
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described in Section 5, including-
A. 
a description of the methods used to select the research topics of competitions and 
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the amounts of the innovation prizes; 
B. 
a discussion of the features of competitions that contribute to the success or lack 
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of success of the competitions; 
C, 
the number of participants involved in the competitions; 
D, 
the amount of private funds contributed to the program and the sources of such 
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funds; 
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E, 
the effect of the program on public awareness of innovation; and 
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F, 
the effect of the program on the public image of the Department of Trade and 
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Industry. 
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SECTION 20, Appropriations. - To carry out the provisions of this Act, such amount as 
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necessary is hereby authorized to be appropriated from the National Treasury, 
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SECTION 21. Separability Clause. - If any provision or part hereof is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting. 
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SECTION 22, Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule or regulation contrary to or is inconsistent 
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with the provision of this Act is hereby repealed, modified, or amended accordingly. 
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SECTION 23. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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