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Challenges to Filipinovation

We stand on the brink of a technological revolution that will fundamentally alter the way we live,
work, and relate to one another. In its scale, scope, and complexity, the transformation will be
unlike anything humankind has experienced before. The world is at the dawn of the Fourth
Industrial Revolution, which represents a transition to a new set of systems, bringing together
digital, biological and physical technologies in new and powerful combinations.

The First Industrial Revolution used water and steam power to mechanize production. The
Second used electric power to create mass production. The Third used electronics and
information technology to automate production. Now a Fourth Industrial Revolution is building
on the Third, the digital revolution that has been occurring since the middle of the last century. It
is characterized by a fusion of technologies that is blurring the lines between the physical,
digital, and biological spheres.

Networked readiness is a key indicator of how countries are doing in the digital world.
Networked readiness shows how ready each country is to reap the benefits of that transition.
Present Challenges to Filipinovation
The Philippines ranked 71st out of 125 countries in the world that lacked readiness to adopt
domestic and international technologies due to the existing weakness in the countrys technology
transfer and innovations policies. It ranked 91st out of 125 countries in Global Report of World
Economic Forum.
A Technical Working Committee of the DOST studied the National Innovation in 2007 and
found problems in areas such as:

Weak Public-Private Collaboration R&D

Considering the comparatively limited government budget for S&T, public support remains
inadequate.

A 1998 study indicated that industries prefer to acquire technologies from sources other than
public RDIs. To be successful between suppliers (scientist and researchers) and adopters like
what developed countries already achieved through cooperative research initiatives.
Weak Technology Transfer System
There is insufficient harmony and convergence of technology transfer policies and activities
among stakeholders such as RDIs, government agencies, entrepreneurs and venture capitalists.

Weak support to S&T and lack of resources for technology


Considering the comparatively limited government budget for S&T, public support remains
inadequate. The Global Competitiveness Report for 2007-2008 revealed the poor state of RPs
innovation vis--vis other Asian countries and the rest of the world.

Limited number of R&D personnel

There are also inadequate R&D human resources that actually conduct research compared with
other countries.
Weak Intellectual Property (IP) Culture among Technology Generators
Intellectual Property - is the term used to describe intangible assets resulting from the creative
work of an indivldual or organization. IP also refers to creatlOns of the mind, such as inventions,
literary and artistIc works, and symbols, names, images and desIgns used in commerce.
Based on the experience of newly industrialized countries, it is critical to enforce a strict IPR
regime to protect IP assets arising from R&D projects funded fully or in part by government
agencies. In effect, a strict IPR regime leads to the commercialization of public funded R&D
results.
The Philippines generates very few homegrown patents (about on per million population)
compared to its Asian neighbors. The Intellectual Property Office Philippines reported a dip in
local patents granted with only 15 local patents granted from a total of 1653 granted in 2005 and
only 28 out of 1814 in 2007.
In the 2005-2009 period, the number of patent applications was approximately 3,000 to 3,500,
and the number of registrations was approximately 800 to 1,700. Note that for a majority of the
applications and registrations, foreign parties played a main role.
Most stories on research and development (R&D) projects undertaken in the Philippines start
well. Most dont end well. For a number of reasons, many Filipino scientist and researchers
distrust the governments ability to protect intellectual property rights (IPR) over their creative
works. Some have limited knowledge on the benefits of IPR, while others presume that securing
protection is not worth the time and cost. As a result, many fruits of public funded R&D went
unprotected and even exploited by technology prospectors to their commercial advantages
The Philippines generates very few homegrown patents (about on per million population)
compared to its Asian neighbors. The Intellectual Property Office Philippines reported a dip in
local patents granted with only 15 local patents granted from a total of 1653 granted in 2005 and
only 28 out of 1814 in 2007

Who protects what?


Most stories on research and development (R&D) projects undertaken in the Philippines start
well. Most dont end well. For a number of reasons, many Filipino scientist and researchers
distrust the governments ability to protect intellectual property rights (IPR) over their creative
works. Some have limited knowledge on the benefits of IPR, while others presume that securing
protection is not worth the time and cost. As a result, many fruits of public funded R&D went
unprotected and even exploited by technology prospectors to their commercial advantages.

Republic Act No. 8293


An act prescribing the intellectual property code and establishing the intellectual property office,
providing for its powers and functions for other purposes.

State Policy Declaration


The State recognizes that an effective intellectual and industrial property system is vital to the
development of domestic and creative activity, facilitates transfer of technology, attracts foreign
investments and ensures market access for our products. It shall protect and secure the inclusive
rights of scientists, inventors, artists and other gifted citizen to their intellectual property and
creations, particularly when beneficial to the people for such periods as provided in this Act.

Effects on International Conventions and on Principle of Reciprocity


Any person who is a national or who is domiciled or has a real and effective industrial
establishment in a country which is a party to any conventions, treaty or agreement relating to
intellectual property rights or the repression of unfair competitions, to which the Philippines is
also a party, or extends reciprocal rights to nationals of the Philippines by law, shall be entitle to
benefits to the extent necessary to give effect to any provision of such convention, treaty or
reciprocal law, in addition to the rights to which any owner of an intellectual property rights is
otherwise entitle by this Act.

Parts of the Law


The Intellectual Property Code of the Philippines is divided into five parts, to wit:
Part I The Intellectual Property Office
Part II The Law on Patents
Part III - The Law on Trademarks, Service Marks and Trade Name
Part IV The Law on Copyright
Part V Final Provisions

Intellectual Property Rights under the I.P. Code


The intellectual property rights under the Intellectual Property Code are as follows:
1. Copyrights and related rights;
2. Trademarks and service marks;
3. Geographic indications;
4. Industrial designs;
5. Patents;
6. Layout designs [topographies] of integrated circuits; and
7. Protection of undisclosed information.

Government Agencies
The agency of the government in charge of the implementations of the Intellectual Property Code
is the Intellectual Property Office which replaced the Bureau of Patents, Trademarks and
Technology Transfer. It is divided into six [6] Bureaus, namely:
1.) Bureau of Patents;
2.) Bureau of Trademerks;
3.) Bureau of Legal Affairs
4.) Documentation, Information and Technology Transfer Bureau
5.) Management Information System and EDP Bureau
6.) Administrative, Financial and Personnel Services Bureau

Functions of the Intellectual Property Office


The Intellectual Property Office is mandated under the law to:
1. Examine applications for the grant of letters patent for inventions and register utility
models and industrial designs;
2. Examine applications for the registration of marks, geographic indication and integrated
circuits;
3. Register technology transfer arrangements and settle disputes involving technology
transfer payments covered by the provisions of Part II, Chapter IX on Voluntary
Licensing and develop and implement strategies to promote and facilitate technology
transfer;
4. Promote the use of patent information as a tool for technology development
5. Publish regularly its own publication the patents, marks, utility models and industrial
designs, issued and approved and the technology transfer arrangements register;
6. Administratively adjudicate contested proceedings affecting intellectual property rights,
7. Coordinate with other government agencies and the private sector efforts to formulate
and implement plans and policies to strengthen the protection of intellectual property
rights in the country.

Significant Feature of the Law


1. A shift was made from the first-to-invent system under R.A 165 [old law] to first-to-
file system under the new law.
2. In the case of inventions, the period of the grant was increased from 17 years from grant
under the old law to 20 years from date of filing under the law.
3. In the case of utility models, the previous grant of 5 years plus renewals of 5 years each
under the old law was changed to 7 years without renewal under the new law.
4. In the case of industrial designs, the previous grant of 5 years plus renewals of 5 years
each was maintained.
5. Under the old law, there was no opposition proceedings and the examination is
mandatory, under the new law, the examination is made only upon request [possibly with
or without examination].
6. Under the old law, publication is made after the grant; under the new law, publication is
effected after 18 months from filing date or priority date.
7. Under the old law, the penalties for repetition of infringement are: Php 10,000 and/or 5
years of imprisonment and the offense prescribes in 2 years; under the present law, the
penalties range from Php 100, 00 to Php 300,000 and/or 6months to 3 years of
imprisonment and the offense prescribes in 3 years.

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