Project in Taxation

Intellectual Property Law (R.A. 8293)

And
Special Economic Zone Act (R.A. 7916)

Submitted by:
Agustin, Marjorie Anne Dominique C.
Clemente, Eliane D.
Luna, Jessa Mae
Majadas, Crystal Hannah A.
IRR4-TAX2

Submitted to:
Atty. Dante O. Dela Cruz

September 2016

Intellectual Property Law Questions:

1. Awagi, an employee of TechGeniuses Company was able to invent a garbage-eating
machine using the facilities of her employer, TechGeniuses Co. Can Awagi have the
garbage-eating machine patented under her name?
2. Luke, a Filipino mechanical engineer who is not connected with Komatsu Ltd., happens
to use Komatsu loaders. He made an invention that significantly improves the efficacy of
certain loaders. Komatsu learned about the new invention of Luke and it made an
application to patent it in Tokyo, Japan. After it got the patent in Tokyo, Komatsu filed a
patent in Manila, Philippines before Luke had any application for patenting the same
invention. Assuming there was no fraud and provided that the said invention is patentable
under the Patent Law in the Philippines, shall Komatsu Ltd. be granted with the patent
due to the first-to-file system?
3. San is the registered trademark owner of iCAN which he uses on his sale of insulated
tumblers that are being sold worldwide. Due to its popularity and high demand, Beda
came up with his own iCAN mark, which he then used for his iCAN popcorns. San
now sues Beda for trademark infringement. Was there an infringement?

4. After winning from a professional weightlifting event in Rio, the renowned Filipina
weightlifter Haidilyn arrived at the Ninoy Aquino International Airport met by thousands
of fans and hundreds of media photographers. The next day, a colored photograph of
Haidilyn wearing a dri-fit shirt embroidered with 2-inch Adidas logo appeared on
billboards along EDSA. Adidas is an international company that manufactures sports
apparel and owns the Adidas trademark, decided to cash -in on the universal popularity of

the weightlifting icon. When Haidilyn saw the advertisement, she hired a lawyer and sued
Adidas before the Philippine court. Was there an infringement committed?

5. Ms. Jessica May Pascual, a very creative and artistic individual who is considered as a
well-known artist, has the following works covered by copyright:
Literary Works:

BOOKS
-BOOK 1 with co-authorship
-BOOK2 without co-authorship
Photograph of a UNICORN

Derivative work:

She has her own arrangement of the musical piece a Christmas Festival

Consider the following scenarios:

a) BOOK1 has co authorship with Ms. Pascual, Mr. Sy and an anonymous author
b) BOOK2s author is only Ms. Pascual.
Who owns the copyright of the book if:
a.
b.

Ms. Pascual is an independent author?

Ms. Pascual is employed in a publishing company Penguinunu Publishing

House
c.
Ms. Pascual is paid to do the research and write about the topic published in the
book
BOOK2 is used as an Art textbook and is used by Professor X who:
a. Reproduced it to his class because it is expensive
b. Used the book for his research regarding Art styles and cited the information in the
book in his own research paper
Is there any violation with regard to Fair use of a copyrighted work?

6. Ms. Pascual sold her Photograph of a UNICORN to Mr. Joker who reproduced it and
made each copy reproduced framed and he hung it on the living room of his house in
Cavite, Nagtahan, and at Sydney Australia.
Is there infringement or is there any violation with regard to the fair usage of a
copyrighted work?

7. Malala Brooks is a famous performer and singer. Malala Brooks is under ABS-GMA
broadcasting company. She sang Im a Unicorn an original composition by her in a Tv
Show and that became a hit. ABS-GMA decided to produce an album with Malala
Brooks as the singer and it features that song.
Who owns the copyright on the song Im a Unicorn and what are the rights of Malala
Brooks and the Broadcasting Company?
8. Assuming the Bureau of Patents, Trademarks & Technology Transfer is to be abolished
and the following are present under the Bureau:
- unexpended funds and fees of P 1,000,000; Fines- P 200,000; Royalties- P 300,000;
Properties not used for any acquisitions- P 1,500,000,
-records of the Bureau of Patents, Trademarks & Technology Transfer,
What are to be transferred to the Office and how much would the unabsorbed personnel
receive considering the additional information below?
Additional information: There are no retirement benefits and there are absorbed
personnel of 18 and unabsorbed personnel of 7 with 25 years of service each. Their one
month basic salary is P 20,000.
9. On October 1, Mr. Dexter filed an application seeking registration on the Principal
Register for his trademark. He copied parts of the trademarks features from Ms.
Chicster's trademark. It is rejected by the examiner, thus amend the application to the
Supplementary Register. On Nov. 1, Ms. Chicster had her trademark registered with the

Principal Register. Neither Mr. Dexter nor Ms. Chicster was aware of both registration
made by them. To whose registration of trademark is valid?
Special Economic Zone Questions:

1. Are the transactions within or without the EcoZone area subject to the national and local
taxes?
2. In Zamboanga City Economic Zone (ZamboEcoZone) specifically at MAMASAPANO,
Maguindanao efforts to turn the town into a model community of long-term development
are being exerted. If the PEZA Administrator opted to ask for help from private
companies and if they succeeded on their partnership what would be the treatment
between the transactions from the EcoZone and the private companies?
3. Can the West Philippine Sea be considered as an EcoZone?
4. Can a foreign investor within the ECOZONE be granted a permanent residence status in
the Philippines?
5. In 2013, the City of Tacloban was devastated by the strongest tropical cyclone ever
recorded, Typhoon Haiyan killing 100 people and many more injured. Some houses and
infrastructures in Tacloban were completely destroyed. Communications and roads were
cut

off

and

the

airport

is

completely

ruined

by

storm

surges.

In 2014, is the City of Tacloban still identified as ECOZONE?

6. MedTEnt Corp. registered as an economic zone medical tourism enterprise in the
Philippines last January 2014. It had the following limited information on December
2015.
-Income solely from servicing foreign patients:
P 18,000,000.00
-Imported a medical equipment for its technical operations: P 5,000,000
-Local purchases (electric power and water bill):
P 950,000
How much corporate income tax and VAT are to be paid with respect to the information
above?