PHILIPPINES’ LEGAL FRAMEWORK
The Philippine legal system is predominantly a mixture of civil law and common law regimes. This was a direct result of the successive occupation of the country by Spain and the United States during the late 19th century and early 20th century, respectively. Adding to this civil law and common law hybrid is indigenous customary law, and a separate and distinct Muslim legal system for the Muslim minority. The present Constitution of the Philippines, ratified by the Filipino people in a plebiscite on February 2, 1987, is the supreme and fundamental law of the land. Under the 1987 Constitution, the Philippine government follows a tripartite structure, namely the legislative, executive and judiciary, all three of which are the primary sources of law. The bicameral legislature, consisting of the House of Representatives and Senate, is the source of statutory law. The executive, headed by the President of the Philippines, promulgates presidential issuances, and administrative rules and regulations. Meanwhile, the judiciary is the repository of case law or judicial decisions. The Philippine court system follows the following hierarchy. Civil and criminal actions are instituted before trial courts. Each trial court is presided by a judge. The decisions of trial courts are in turn reviewable by the Court of Appeals, consisting of 23 divisions distributed geographically across the country. Three justices sit in every division. At the top of the court hierarchy is the Supreme Court, consisting of 15 justices. Cases before the Supreme Court are heard either en banc or in division. At present, the Supreme Court has three divisions.
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Intellectual Property in the Philippines
The most common categories registered for IP rights in the Philippines are Patent, Trademark, and Copyright. Republic Act 8293, otherwise known as the Intellectual Property Code, provides the legal framework for intellectual property protection in the Philippines. It came into effect on January 1, 1998. In 1913, the Philippine legislature passed Act No. 2235 making United States’ patent laws applicable in the Philippines. Act No. 3134, entitled, “An Act to Protect Intellectual Property” was passed in 1924, making it the main intellectual property law in effect until after Philippine independence from the US in 1945. Act. No. 3134 was based on the U.S. Copyright Law of 1909. As a newly independent state, the Philippines enacted two laws strengthening the IP system in: Republic Act 165 and Republic Act 166, establishing a patent office and allowing for registration and protection of trade marks, trade names, and service marks respectively, in 1947. During the Marcos administration, Presidential Decree No. 49, which governed copyright works, was passed and superseded Act No. 3134.
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Patent in the Philippines
Patent matters are governed by the Intellectual Property Code of the Philippines (Republic Act No. 8293) (1997) and Republic Act No. 10372, entitled ‘An Act Amending Certain Provisions of Republic Act No. 8293, otherwise known as the ‘Intellectual Property Code of the Philippines’, and for other purposes’ (2013). There are two types of patent application filing in the Philippines including direct filing and PCT filing. A Patent is a grant given by the government to inventors/applicants in return for disclosing an Invention. It is a legal right to exclusively exploit the invention for the life of the patent. A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. To get a patent, technical information about the invention must be disclosed to the public in a patent application.The term of protection for a Patent is (20) years from the date of filing in the Philippines, with no possibility of renewal.
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Trademark in the Philippines
The legislation governing trademarks in the Philippines is Republic Act No. 8293, or the Intellectual Property Code of the Philippines. A trademark application may be filed either: by direct filing before the Intellectual Property Office of the Philippines (IPOPHL), a so-called national filing; or through the Madrid System by designating the Philippines. Assuming smooth registration and no objections/oppositions, the mark can be expected to be registered within two to three months from the filing date of the application. The issuance of the original certificate of registration (COR), however, may take longer. The COR is issued between three and six months from the date of registration on average. Trademark registration is valid for ten years from the registration date. A request for trademark renewal should be filed within six months prior to the expiration of the registration or within a six-month grace period after the expiration date provided that a surcharge is paid.
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Industrial design in the Philippines
Industrial design matters are governed by the Intellectual Property Code of the Philippines (IP Code) or Republic Act 8293. In order to protect an industrial design, one must file an application with the Philippine Intellectual Property Office. Multiple design applications are permitted in the Philippines. A Philippine design application claiming conventional priority must be filed to the Philippine IP Office within six months from the priority date. Graphical user interfaces (GUIs) can be the subject of an industrial design application provided it meets the definition of a design, and complies with the registrability requirements. Design registration in the Philippines is valid for five years and may be renewed for two additional five-year periods. The renewal fee is to be paid within twelve months prior to the expiration of the protection period. Late payment is possible within a grace period of six months, upon payment of a surcharge. Section 172(h) of IP Code provides that original ornamental designs or models for articles of manufacture, whether or not registrable as an industrial design, and other works of applied art are protected by copyright.
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Copyright in the Philippines
The Philippines is a member of several international copyright treaties and conventions and offers copyright protection to foreign works in accordance with these treaties. Copyright matters in the Philippines are governed by Republic Act No. 8293, otherwise known as the Intellectual Property Code of the Philippines (“IP Code”). Works covered by the copyright law are (1) literary and artistic works and (2) derivative works. On the other hand, works not protected by the copyright law are (1) unprotected subject matter and (2) works of the government. Copyright protection lasts during the life of the author and for fifty (50) years after his death (Sec 213.1, IP Code). In case of works of joint authorship, the economic rights shall be protected during the life of the last surviving author and for fifty (50) years after his death (Sec 213.2 IP Code). In order to prove copyright infringement, one must show that he has a valid copyright in the work allegedly infringed and that the perpetrator infringed the victim’s copyright by copying protected elements of the latter’s work.
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IP enforcement in the Philippines
The IP owner may work with government agencies to conduct a raid action pursuant to a valid search warrant or a visit/inspection pursuant to some of the government agencies’ visitorial powers. Raid actions are usually conducted by the National Bureau of Investigation (Intellectual Property Rights Division) and the Philippine National Police (Criminal Investigation and Detection Group). The Optical Media Board and the Intellectual Property Enforcement Office can conduct inspections and issue warning letters through their visitorial powers. The course of action depends on the end goal of the IP owner. If the owner wants to seize a huge inventory of counterfeit items, it is best to conduct a raid action. If the aim is to deter continuing infringing acts done in a small scale, a visit/inspection by the Intellectual Property Enforcement Office or the Optical Media Board may suffice. Under Philippine law, copyright infringement, for example, is punishable by the following: Imprisonment of between 1 to 3 years and a fine of between 50,000 to 150,000 pesos for the first offense. Imprisonment of 3 years and 1 day to six years plus a fine of between 150,000 to 500,000 pesos for the second offense.
Eleven Facts About the Philippines You Might Not Know
1. The Philippines was named after a Spanish King
When Spanish explorer Ruy Lopez de Villalobos first came, he named the islands in honor of then Prince Felipe of Asturias as “Las Islas de Filipinas.”. Prince Felipe eventually became King Felipe II, and, during his reign, Spain reached their Golden Age. When the Americans came, they renamed is to “Philippines,” with “Philip” as the English equivalent for “Felipe.”
2. Philippines is the only Catholic country in Asia
Spain converted then Islamic tribes in the Philippines to Catholicism and was once the only Christian country in Asia prior to the rise of Christianity in South Korea.
3. Divorce remains illegal
With the Catholic Church’s grip on Philippine society, the country has a strong conservative stand on social issues like divorce and same-sex marriage. In fact, Philippines is the only country in the world that doesn’t allow divorce.
4. There are at least 120 languages and dialects
With more than 7,000 islands, Filipinos speak a lot of languages; up to 176 languages have been recorded, ranging from regional dialects to tribal languages. Though Filipino language is based in Tagalog, other widely spoken languages in the country includes Cebuano, Hiligaynon, Ilocano, and Kapampangan. Some words can have different meanings in other languages. For example, “langgam” is an ant in Tagalog, but it is a bird in Cebuano. Others translate to something vulgar in another regional language. For example, “sabot” means, “understand/comprehend” in Cebuano, but it means “pubic hair” in Hiligaynon. The same with the Cebuano word, “libog” (confused) is “lust” in Tagalog.
5. Filipinos smile for many reasons
Hospitality is one of the characteristics of the locals that draws its visitors. It easy for Filipinos to smile,but it doesn’t mean they are glad all the time. In fact, Filipinos also smile when they feel embarrassed or when they think you are dumb. So you might need to decipher the different kinds of Filipino smiles.
6. The People of the Philippines are some of the Most Polite in the World
Filipinos are warm, fun-loving people with a great sense of humour! This paired along with a good culture and respect for all the elders makes it one of the happiest countries in the world. In the Philippines, you can see every visitor being greeted as ma’am or sir and the children addressing them as “kuyas” and “ates”, for elder brother and sister respectively. This politeness and respect span over a wide range of situations, where even when asked for help, it would be surprising to find one single Filipino saying a direct harsh “no” to any request you make. They have separate lines for the elderly, pregnant women, or the disabled for various facilities such as the taxi stations, banks, and others. These guidelines are obeyed by all the citizens hence ensuring peace and harmony in the country.
7. Christmas in the Philippines Starts in September
The people of the Philippines celebrate Christmas not just as a day but as a holiday season that starts from the month as early as September! Christmas is the longest holiday in the Philippines and the people love to start shopping and decorations in September. The shopping bazaars and sites are crowded with people. An important practice from various of their religious customs is their night mass that happens for 9 straight days leading up to Christmas eve! So, if you are a fan of the Christmas holiday and are planning to travel to the Philippines, Christmas would be the best time.
8. Filipinos have a passion for boxing
Whenever world-famous Filipino fighter Manny Pacquiao has a televised fight, it seems like a national holiday throughout the country due to the absence of cars on the road and even people in the mall. This is because Filipinos are glued to the television set, excitedly anticipating the win of Manny Pacquiao. The Philippine National Police has even reported that there is a drop in crime in Metro Manila each time Manny Pacquiao has a fight!
9. The Philippines are home to one of the longest subterranean rivers in the world
Before the discovery of a 10 km underground river in Mexico, Palawan’s Puerto Princesa Subterranean River was recognized as the longest subterranean river in the whole world. These astonishing geography fact continues drawing millions of tourists who come to marvel at the natural wonders of the subterranean river to Puerto Princesa each year.
10. 13 is an unlucky number
A great number of Filipinos think that the number 13 is a bad omen. As a result, they believe that 13 people should not sit at a table and the main entrance of a house shouldn’t fall on a number that is divisible by three. They also believe that it is bad to travel on Holy Thursday or Good Friday, as this increases the likelihood of accidents. It’s one of the most unusual facts about Filipinos, but many still believe these!
11. The Philippines boasts the world’s longest underground river
Located 75km north of Puerto Princesa, lies the longest underground river in the entire world. In 2011, the Puerto Princesa Subterranean River was christened as one of the New7Wonders of Nature by UNESCO, cementing its status as a natural marvel. The Underground River Cave measures in at more than 24 km long and the part with the underground section of the Cabayugan River spans 8.2km. Travellers can visit Puerto Princesa River as part of a tour or independently.
Bud & Prairie helps your business navigate the Philippines’ laws and regulations. Our solutions manage and process your issues, as well as enhance your potentialities. Partnering with Bud & Prairie means a quick, cost-effective, and compliant way to grow at the Filipino market.
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The Philippines employment and human resources
Employment law in the Philippines is governed by the Labor Code of the Philippines. There are five types of employment in the Philippines, mostly determined by the nature of activities that employees perform: Regular/Permanent Employment, Casual Employment, Term/Fixed-Term Employment, Project Employment and Seasonal Employment. The employer is required to establish the terms and conditions of the employment contract, which is subject to limitations under the Labor Code. Local employers can engage foreigners to perform work for them in the Philippines. There is no general limit to the number of foreigners an employer may hire but such employer must prove through a certification called Alien Employment Permit (AEP) that there is no person in the Philippines who is competent, able, and willing to perform the services that foreigners are called to perform. Meanwhile, as a general rule, Philippine citizens can only apply for overseas employment through a licensed Private Employment Agency (PEA) – a recruitment agency duly authorized by the Philippine government to perform recruitment and overseas placement activities in the Philippines.
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📝 Contract Formation and Enforcement in the Philippines
Contracts are perfected by consent of the contracting parties under the Civil Code of the Philippines. The Civil Code defines a contract as “a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service.” For there to be a valid contract, these three elements must be present: consent, object, and cause. The element of consent is satisfied once the parties agree on the terms of the contract. In practice, it is a situation where one party makes an offer and the other party accepts it. For their enforceability, the following contracts must appear in a public document, that is, a document executed or acknowledged before a notary public: i) acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; ii) cession, repudiation or renunciation of hereditary rights or those of conjugal partnership of gains; iii) the power to administer property or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person; and, iv) the cession of actions or rights proceeding from an act appearing in a public document.
📅 The Philippines public holidays
Date | Description |
January 1 | New Year’s Day |
April 6 | Maundy Thursday |
April 7 | Good Friday |
18 Feb | Isra Mi’raj |
April 10 | Day of Valor (Araw ng Kagitingan) |
May 1 | Labor Day |
June 12 | Independence Day |
August 28 | National Heroes Day |
November 27 | Bonifacio Day |
December 25 | Lebaran Holiday |
December 30 | Rizal Day |
🏦 Construction and Projects in the Philippines
1. Marawi Rehabilitation and Development – $122m
The project involves rehabilitation and development of the Marawi Transcentral Road in Mindanao, the Philippines. It is part of the program comprising the construction, rehabilitation, and improvement of 176.6km of roads, linking of the Bangsamoro Autonomous Region in Muslim Mindanao to the trade centers of Mindanao.
2. San Fernando Mixed-Use Complex – $119m
The project involves the construction of a mixed-use complex on 2.8ha of land in Telabastagan, San Fernando, the Philippines. The main aim of the project is to cater to the growing demand for residential and commercial facilities in the region.
3. Baras Solar Power Plant 115 MW – $100m
The project involves the construction of an 115MW solar power plant in Baras, Rizal, the Philippines. The aim of the project is to meet the growing demand for power in the region.
4. Masters Tower Cebu Mixed-Use Development – $83m
The project involves the construction of a 192m, 50-story mixed-use complex on 0.28ha of land in Cebu, the Philippines. The project aims to provide better office, retail, and hospitality facilities in the region.
5. Mandtra Residences – $64m
The Mandtra Residences involves the construction of three towers comprising 1,879 units on 1.2 ha of land in Cebu, the Philippines. The project aims to provide better residential facilities in the region.
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Bud & Prairie offers a full complement of services in all areas of IP law and other legal practices, including without limitation patents; trademarks; copyrights; industrial designs; IP litigation; anti-counterfeiting and enforcement; and licensing, due diligence, and contract review. Our strong technique fields include bio-chemistry, biotechnology, pharmaceutical, superconductor devices and systems, civil engineering, electrical engineering, mechanical engineering, electronics, computer software, telecommunications, information technology, communications, media, construction.
Bud & Prairie boasts a team of highly-qualified lawyers, licensed patent and trademark agents, engineers, paralegals, technical staff and legal professionals whose knowledge, experience, and acumen are second to none. Most of our attorneys and consultants own advanced degrees from both domestic and foreign institutions. We have the depth of experience of our partners with a perfect combination of knowledge, foresight and creativity, making us possible to analyse and solve issues faced by clients from various industries and providing them with all-round or holistic solutions that are not only legally sound, but also commercially sensitive.
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