FOURTEENTH CONGRESS OF THE 
) 
REpuBLrc OF THE PHILIPPINES 
S m n d  Regular Session 
SENATE 
I/ 
s. NO. 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
Explanatory Note 
In the advent of new technologies and inventions, the reinstitution of the Philippine Inventors 
Commission (PIC) is necessary to cater to the growing needs of Filipino inventors amidst rapid 
globali;.;.t.ion, The need for re-institiuting the PIC! is very relevant as the role of science and 
technology becomes more pronounced in economic development worldwide. 
Section 10 under Article X V  of the Cmstitutim provides that the State shall give priority to 
research md deiopepnt, inventim, imwatien, md &eir uti&&ion. $&weover, %6tim 11 of 
the same mandates that the State shall grant scholarships, grants-in-aid, or other forms of 
incentives to deserving science students, researchers, scientists, inventors, technologists, and 
especially gifted citizens. 
Thus, this bill seeks to re-establish the PIC as the lead agency in promoting research and 
development in the Philippines. This Act shail strengthen the mechanisms for providing the 
much needed support to Filipino inventnrs hy rationalizing programs for research and 
development, the manufacturing and marketing of inventive ideas, products, processes and such 
other areas of technology development. Further, PIC shall provide comprehensive support 
senices to Filipino inventors and shall likewise help protect o a  cwtrymen's inventions. 
In view of the foregoing, the early passage of this bill is earnestly sought 
' ~ N T ~ , N I O  
"SONNY" F. T ~ L A N E S  
IV 
Senator 
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FOURTEENTH CONGRESS OF THE 
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S m c  Reguhr Session 
REPUBLltC OF THE PHILIPPINES 
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9 MAY 18 ii9 :‘is 
SENATE 
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Introduced by Senator Antonio “Sonny” F. Trillanes IV 
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AN ACT 
RF,STORfIyG THE PHfLlPBLNE INVENTORS COMMISSION, DEFINING ITS 
POWERS, FUNCTIONS AND DUTIES, AND FOR OTHER PURPOSES THAT WILL 
ENCOIJRAGE 
THE 
GENERATION, 
DEVELOPMENT, 
MANUFACTTJRE, 
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Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
ussemb fed: 
SECTION 1. Titla- This Act shall be known as the “Inventors and Invention Incentives 
Act of 2 W .  
SEC. 2. Declaration of Policy- It is hereby declared a policy of the State to give priority 
to research and development, invention, innovation, and their utilization. The State shall also 
support indigmnous, appropriate, and sdf-reliant scientific and tehobgical capabilities, and 
their application to the country’s productive systems and national life. 
Further, the State shall regulate the transfer and promote the adaptation of technology from all 
sources for the national benefit. It shall emomage &e widest pslrticipation of private pups, 
local governments, and community-based 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 scientists, and inventors to 
their intellectual p~opaty and crmtim, @ic&ly 
when M c i d  to the people, for such 
period as may be provided by law. 
SEC. 3. Philippine Inventors Commission.- The Philippine Inventors Commission is 
hereby reftored as p v + M  for under Repnblic Act No. 3850, as mended. The Philippine 
Inventors Commission, hereinafter referred to as the Commission, shall be under the Office of 
the m i d e n t  of the Republic of the Fhilippina for the purpose of giving technical, financial, 
legal and marketing assistance to Filipino inventors and their inventions. 
SEC. 4. Functions and Responsibilities.- The Commission shall have the following 
hx*ions, p o w  and duties: 
1. To render technical assistance to inventors by examining their submitted invention to 
determine their patentability and by helping them p
r
v
 their pat- 
application, under certain 
terms and conditions; 
2. To grant financial aid to inventors to enable them to develop, perfect and produce their 
patented inventions or those which are pending patent, under certain terms and conditions; 
3. To mder legal assistance to inurntors by representing t
b
 
in filing their patent application 
here and/or abroad an in protecting their patent from infringement in patent cases, under certain 
terms and mnditiow, 
4. To facilitate financial assistance from local and international lending institutions on the 
development of inurntiom t& are b f & d  to om muntry- for long t m  loans to enable 
inventors to manufacture their inventions, with only their letters patent as collateral, the amount 
of loan to be granted depending upm the imporkmce and mzrket of their inventions as 
determined by the Commission; 
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5. To develop and establish import and export assistance program and help inventors find 
markets for their inventions here and abroad; 
6. To encourage Filipino inventors to promote their inventions in the Philippines in the field of 
agriculture, chemistry, commerce, communications, education, engineefing, fishery, forestry, 
medicine, national defense, pharmacy, physics, public safety and welfare, public works, 
transportation and other field of science, which shall be open to all Filipino inventors who may 
submit entries in one or more fields; 
7. To establish and maintain a public mearch laboratory and experimental station where 
authorized inventors and researchers may avail themselves of 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 
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 andor production and market of the assisted 
ideas, products and processes, the inventor or researcher shall give the commission at Ieast five 
(5) percent of the net income derived therefrom. Proceeds from all kinds of assistance rendered 
by the Commission shall accrue to its account and shall be used to carry out its objectives and 
mandate; 
8. To assist inventors, scientists and mearchers in joining international competitions including 
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market development abroad; 
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9. To publish and disseminate information about inventions, researches and science in general; 
and, 
10. To organize creative societies in schools, colleges and universities to promote and encourage 
creativeness among our youth. 
SEC. 5. Organization.- The Commission shall be composed of Board of Commissioners 
organized under a Chairperson to be assisted by four (4) unless otherwise renewed. Each shall be 
a Filipino citizen and at least twentyfive (25) years of age. They shall exercise collective 
decision-making as the highest policymaking body of the Commission. The Board of 
Commissioners shall promulgate and impiemat rules and regulations necessary to perforin the 
functions of the Commission to carry out the provisions of this Act. 
The Commission shall have the following standing departments: Intellectual property and Legal 
Department, Finance Department, Administrative Department, Research and Development 
Department, Project Development and Business Consultancy Department, Record and 
Information Department. The Commission, with the approval of the President, may create 
additional units deemed necessary by the Board of Commissioners. 
SEC. 6. Invention Zone- The Commission, with the approval of the President, may 
select a suitable location on any public land owned by the National Government for the site of its 
public research laboratory, experimental station and manufacturing plants/ factories or branch 
thereof with housing facilities for the inventors and mearchers working therein to be known as 
Invention City and/or Invention Economic Zone. Within three (3) months from receipt of the 
choice of the Commission duly approved, the Director of Lands shall cause the chosen site to be 
surveyed, delimited and transferred to the Commission to be under its exclusive jurisdiction and 
control. 
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SEC. 7. Consolidation of RA. No. 7459.- All functions, duties and responsibilities 
referring to the promotion and development of inventions confkmd upon the Technology 
Application and Promotion Institute and/or Department of Science and Technology under 
Republic Act No. 7459 are hereby transferred to the Commission which shall hereafter exercise 
those functions. All real and personal properties, moneys, assets, bequests, devices and the like 
accumulated in the exercise of those functions in implementing the said Acts shall also be 
transferred to the Commission; Provided that the research and development (R & D) funder 
under Section 7 of R.A. No. 7459, the Invention Development Assistance Fund, shall be 
increased and provided under the General Appropriation Act in the initial amount of five 
hundred million pesos (Php500,000,W.00) pursuing the global average of two (2) percent of the 
gross national product (GNP) allocated for research and development activities. 
SEC, 8. Tux Exemption. - To promote, encourage and accelerate the manufacture and 
sale of home grown m&or adopted inventions or technologies, the invzntors and their invention 
shall be exempted from all kinds of taxes effective from the date of the tax exemption approval, 
such as the following: 
1. Exemption from the payment of direct and indirect taxes, customs duties, excise taxes, import 
value added taxes, and other charges on import ofmachinery/equipment, parts and materials and 
other components which shall be actually directly and exclusively used for the manufacture and 
market of the invention/technology; 
2. Exemption from the payment of income and value-added taxes on the income derived from 
the commercialization and market of their inventions and technobgies; 
3. Exemption from the payment of fees, and such other fees required for the renewal of the 
patent fees, and such other fees required for the renewal of patent certificate by the Intellectual 
Property Office, exemption from the machinery and equipment used for the development, 
manufacture and sale of their invention and technology; and all of these tax exemption pnvileges 
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shall be extended to their legal heir, or assigneekensee: Provided furlher, that any business 
entity, organization and the likv of w&i& the inwntur is an owner or stuckholder of nut less than 
fifty (50) percent of the total capital shall be extended the same tax exemption privilege. 
SEC. 9. Penalties for Violations.- All donations and grants to the Commission shall be 
tax-exempt and deductible in full from the donor’s income tax r&ms when evidenced by a 
certificate duly issued by the Commission. Any person who evades or defeats, or attempts to 
evade or defeat in any manner any tax imposed by law by availing himself of the provisions of 
this section through fraud or misrepresentation shall be punished by a fine of nut more than fifty 
thousand pesos (Php50,000.00) or imprisonment of not exweding one (1) ycar or both, in the 
discretion of the court. In case the violator is a corporation or association, the President or 
General Manager thereof shall be criminally liable, without prejudice to the criminal 
responsibility of the member, officer or employee thereof committing such violation. 
SEC. 10. Constitution of the Board- The Board of Commissioners shall be constituted 
by the President Within three (3) months from the approval of this Act to formulate the 
implementing rules and regulations and organize the Commission. 
SEC. 11. Appropriations.- There is hereby appropriated the sum of one hundred fifty 
million pesos (Php150,000,000.00) to fund the initial year of the Commission’s operation. 
Further, it is hereby authorized to be appropriated annually such sums as may be necessary to 
carry out the provisions and objectives of this Act to bc included under the general 
appropriations for the Office of the President: Provided, that these sums not to be less than the 
original appropriations of the one hundred fifty million pesos (Phpl50,000,OOO.00). 
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SEC. 12. Repealiw Clause Any laws, decrees, ordinances or rules and regulations 
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repealed. 
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which are iiicmisistent with or @OntraTy to. the yrovisio~ of this hct is- hereby aineililed or 
SEC. 13. Separability Clause. - If any provision of this Act is held invalid or 
wiconstitutiond, t k  other pruvi-siom nmt dfectwi he~by-simlt ~niain 
vdid a i d  subsisting. 
SIC€. 14. Ej-Fec&i@. This k t  shall take e€€kct Gfieen (15) days aReP its complete 
publication in at least two (2) national newspapers o f  general circulation. 
Approved, 
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