Intellectual Property Law (Philippines) PDF

INTELLECTUAL PROPERTY LAW of the filing date priority date of the application claiming the (R.A. NO. 8293 or the Intellectual Property Code of the invention. Philippines)...

INTELLECTUAL PROPERTY LAW of the filing date priority date of the application claiming the (R.A. NO. 8293 or the Intellectual Property Code of the invention. Philippines) (Industrial Applicability) It must be industrially applicable. An o The law on Patents, Utility Model and Industrial Design invention that can be produced and used in any industry shall be industrially applicable. Definition of Patent – it is a grant issued by the government through the Intellectual Property Office of the Philippines (IP o Non-Patentable Inventions Philippines). It is an exclusive right granted for a product, process or an improvement of a product or process which is Discoveries, scientific theories and mathematical methods. new, inventive and useful. This exclusive right gives the inventor the right to exclude others from making, using, or Schemes, rules and methods of performing mental acts, selling the product of his invention during the life of the playing games or doing business, and programs for patent. computers. Definition of Utility Model – It is a protection option, which is Methods for treatment of the human or animal body by designed to protect innovations that are not sufficiently surgery or therapy and diagnostic methods practiced on the inventive to meet the inventive threshold required for human or animal body. This provision shall not apply to standard patents application. It may be any useful machine, products and composition for use in any of these methods. implement, tools, products, composition, process, improvement or part of the same, that is of practical utility, Plant varieties or animal breeds or essentially biological novelty and industrial applicability. It is entitled to seven (7) process for the production of plants or animals. This provision years of protection from the date of filing, with no possibility shall not apply to microorganisms and non-biological and of renewal. microbiological processes. Provisions under this subsection shall not preclude Congress to consider the enactment of a Definition of Industrial Design – It is any composition of lines law providing sui generis protection of plant varieties and or colors or any three-dimensional form, whether or not animal breeds and a system of community intellectual rights associated with lines or colors; provided that such protection. composition or form gives a special appearance to and can serve as pattern for an industrial product or handicraft. It shall Aesthetic creations. be valid for five (5) years from the filing date of the application. It may be renewed for not more than two (2) Anything which is contrary to public order or morality. consecutive period of five (5) years each, by paying the renewal fee. ✓ First to File Rule – if two (2) or more persons have made the invention separately and independently of each other, Mode of creation of right – it must be registered with IPO to the right to the patent shall belong to the persons who be protected by law (Created by Registration with IPO). filed an application for such invention, or where two or more applications are filed for the same invention, to the Term of patent – A patent has a term of protection of twenty applicant who has the earliest filing date or, the earliest (20) years providing an inventor significant commercial gain. priority date. In return, the patent owner shares the full description of the invention. This information is made available to the public in ✓ Right of Priority – an application for patient filed by any the form of Intellectual Property Office Gazette and can be person who has previously applied for the same invention utilized as basis of future research and will in turn promote in another country which by treaty, convention, or laws innovation and development. affords similar privileges to Filipino citizens, shall be considered as filed of the date of filing the foreign Requisites of Patentable Inventions application. Provided, that: a, the local application expressly claims priority: b, it is filed within twelve (12) ✓ It must be a technical solution to a problem in any field of months from the date the earliest foreign application was human activity. It may be, or may be relative to, a product, filed: and c, a certified copy of the foreign application or process, or an improvement of any of the foregoing. together with an English translation is filed within six (6) months from the date of filing in the Philippines. ✓ (Novelty) It must be new. An invention shall not be considered new if it forms part of a prior art. ✓ Right to Patent – the right to a patent belongs to the inventor, his heirs or assigns. When two (2) or more Prior art shall consist of: persons have jointly made an invention, the right to a patent shall belong to them jointly. ✓ Everything which has been made available to the public anywhere in the world, before the filing date ✓ Inventions Created Pursuant to a Commission. The or the priority date of the application claiming the person who commissions the work shall own the patent, invention. unless otherwise provided in the contract. ✓ The whole contents of an application for a patent, In case the employee made the invention in the course utility model, or industrial design registration, of his employment contract, the patent shall belong to: published in accordance with this Act, filed or effective in the Philippines, with a filing or priority ✓ The employee, if the inventive activity is not a part date that is earlier than the filing or priority date of of his regular duties even if the employee uses the the application; Provided, that the application time, facilities and materials of the employer. which has validly claimed the filing date of an earlier application under Section 31 of this Act, ✓ The employer, if the invention is the result of the shall be prior art with effect as of the filing date of performance of his regularly-assigned duties, such earlier application: Provided further, that the unless there is an agreement, express or implied, applicant or the inventor identified din both to the contrary. applications are not one and the same. o Patent Infringement refers to the unauthorized making, using, (Inventive Step) It must involve an inventive step. An offering for sale or selling any patented invention or products of invention involves an inventive step if, having regard to prior the patented invention without consent from the patent holder. art, it is not obvious to a person skilled in the art at the time This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seek legal recourse. Page | 1  o Tests of Patent Infringement relevant sector of the public, rather than of the public at large, including knowledge in the Philippines which has been Literal Infringement – in using literal infringement as a test, obtained as a result of the promotion of the mark. resort must be had, in the first instance, to the words of the claim. If accused matter clearly falls within the claim, Is identical with, or confusingly similar to, or constitutes a infringement is made out and that is the end of it. To translation of a mark considered well-known in accordance determine whether the particular item falls within the literal with the preceding paragraph, which is registered in the meaning of the patent claims, the court must juxtapose the Philippines with respect to goods or services which are not claims of the patent and the accused product within the similar to those with respect to which registration is applied overall context of the claims and specifications, to determine for: Provided, that use of the mark in relation to those goods whether there is exact identity of all material elements. or services would indicate a connection between those goods or services, and the owner of the registered mark: Provided Doctrine of equivalent infringement – It provides that further, that the interest of the owner of the registered mark infringement also takes place when a device appropriates a are likely to be damaged by such use. prior invention by incorporating its innovative concept and, although with some modification and changes, performs Is likely to mislead the public, particularly as to the nature, substantially the same function in substantially the same way quality, characteristics or geographical origin of the goods or to achieve substantially the same result. It requires service. satisfaction of the function-means-and-result test. Consists exclusively of signs that are generic for the goods or The Law on Trademarks, Service Marks and Trade Names services that they seek to identify. o Definition of Terms Consists exclusively of signs or of indications that have become customary or usual to designate the goods or services “Trademark” – it means any visible sign capable of in everyday language or in bona fide and established trade distinguishing the goods of an enterprise and shall include a practice. stamped or marked container of goods. Consists exclusively of signs or indications that may serve in “Service mark” – it means any visible sign capable of trade to designate the kind, quality, quantity, intended distinguishing services of an enterprise and shall include a purpose, value, geographical origin, time of production of the stamped or marked container of services. goods or rendering of the services, or other characteristics of the goods or services. “Collective mark” – means any visible sign designated as such in the application for registration and capable of distinguishing Consists of shapes that may be necessitated by technical the origin or any other common characteristic, including the factors or by the nature of the goods themselves or factors quality of goods or services of different enterprises which use that affect their intrinsic value. the sign under the control of the registered owner of the collective mark. Consists of color alone, unless defined by a given form. “Trade name” – means the name or designation identifying or Is contrary to public order or morality. distinguishing an enterprise. o Term of Trademark and Service Mark – It has a term of 10 years o Mode of creation of right – Trademark, service mark and but subject to unlimited times of renewal. Therefore, it has collective market must be registered with IPO to be protected by indefinite life. law while trade name need not be registered to be protected. (Created by Registration). o Trademark Infringement – Is the unauthorized use of a trademark or service mark on or in connection with goods/services in a o Non-registrable marks – A mark cannot be registered if it: manner that is likely to cause confusion, deception, or mistake about the source of the goods and/or services. Consists of immoral, deceptive or scandalous matter, or matter which may disparage or falsely suggest a connection o Tests of Trademark Infringement with persons, living or dead, institutions, beliefs, or national symbols, or bring them into contempt or disrepute. Dominancy Test – it focuses on the similarity of the main, prevalent or essential features of the competing trademarks Consists of the flag or coat of arms or other insignia of the that might cause confusion. Infringement takes place when Philippines or any of its political subdivisions, or of any foreign the competing trademark contains the essential features of nation, or any simulation thereof. another. Imitation or an effort to imitate is unnecessary. The question is whether the use of the marks is likely to cause Consists of a name, portrait or signature identifying a confusion or deceive purchasers. particular living individual except by his written consent, or the name, signature, or portrait of a deceased President of the Holistic Test – the focus is not only on the predominant words Philippines, during the life of his widow, if any, except by but also on the other features appearing on the labels. written consent of the widow. ✓ Trademark Infringement means any person who shall use, Is identical with a registered mark belonging to a different without the consent of the registrant, any reproduction, proprietor or a mark with an earlier filing or priority date, in counterfeit, copy or colorable imitation of any registered respect of: I, The same goods or services, or II, Closely related mark or trade-name in connection with the sale, offering goods or services, or III, if it nearly resembles such a mark as for sale, or advertising of any goods, business or services to be likely to deceive or cause confusion. on or in connection with which such use is likely to cause confusion or mistake or to deceive purchasers or others as Is identical with, or confusingly similar to, or constitutes a to the source or origin of such goods or services, or identify translation of a mark which is considered by the competent of such business; or reproduce, counterfeit, copy or authority of the Philippines to be well-known internationally colorably imitate any such mark or tradename and apply and in the Philippines, whether or not it is registered here, as such reproduction, counterfeit, copy, or colorable being already the mark of a person other than the applicant imitation to labels, signs, prints, packages, wrappers, for registration, and used for identical or similar goods or receptacles or advertisements intended to be used upon services: Provided, that in determining whether a mark is well- or in connection with such goods, business or services, known, account shall be taken of the knowledge of the This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seek legal recourse. Page | 2  shall be liable to a civil action by the registrant for any or calculating the term of protection, the term of protection all of the remedies herein provided. subsequent to the death of the author shall run from the date of his death or of publication, but such terms shall always be ✓ To establish trademark infringement, the following deemed to begin on the first day of January of the year elements must be proven: (1) The validity of plaintiffs following the event which gave rise to them (i.e., death, mark; (2) the plaintiffs ownership of the mark; and (3) the publication, making). use of the mark or its colorable imitation by the alleged infringer results in likelihood of confusion. o Two rights under Copyright ✓ Unfair competition has been defined as the passing off (or Economic rights which enable the creator to obtain palming off) or attempting to pass off upon the pubic of remuneration from the exploitation of his works by third the goods or business of one person as the goods or parties. business of another with the end and probable effect of deceiving the public. ✓ Reproduction ✓ The essential elements of unfair competition are (1) ✓ Transformation confusing similarity in the general appearance of the goods; and (2) intent to deceive the public and defraud a ✓ First public distribution competitor. ✓ Rental ✓ Jurisprudence also formulated the following true test of unfair competition: whether the acts of the defendant ✓ Public display have the intent of deceiving or are calculated to deceive the ordinary buyer making his purchases under the ✓ Public performance ordinary conditions of the particular trade to which the controversy relates. One of the essential requisites in an ✓ Other communication to the public of the work action to restrain unfair competition is proof of fraud; the intent to deceive, actual or probable must be shown Moral rights which make it possible for the creator to before the right to recover can exist. undertake measures to maintain and protect the personal connection between himself and the work. ✓ Note: There can be trademark infringement without unfair competition such as when the infringer discloses on the ✓ Right of attribution labels containing the mark that he manufactures the goods, thus presenting the public from being deceived ✓ Right of alteration that the goods originate from the trademark owner. In this case, no issue of confusion arises because the same ✓ Right of integrity (to object to any prejudicial manufactured products are sold; only the ownership of distortion) the trademarks is at issue. ✓ Right to restrain use of his name ✓ Distinction between trademark infringement and unfair competition. Ownership of copyright ✓ Infringement of Trademark is the unauthorized use of a ▪ Generally, the natural person who created the literary trademark, whereas unfair competition is the passing off and artistic work owns the copyright to the same. of one’s goods as those of another. ▪ For work created during or in the course of ✓ In infringement of trademark – fraudulent intent is employment (works for hire): unnecessary whereas in unfair competition fraudulent intent is essential. ✓ Employee - if the work is not part of his regular duties, even if he used the time, facilities, and ✓ In infringement of trademark, the prior registration of the materials of the employer. trademark is a prerequisite to the action, whereas in unfair competition registration is not necessary. ✓ Employer - if the work is the result of the performance of his regularly assigned duties, Law on Copyright unless there is an express or implied agreement to the contrary. o Definition of Copyright – it is the legal protection extended to the owner of the rights in an original work. ▪ For commissioned works: the person who commissioned the work owns the work o Definition of “Original Work” – it refers to every production but the copyright thereto remains with in the literary, scientific and artistic domain. Among the the creator, unless there is a written literary and artistic works enumerated in the IP Code includes agreement to the contrary. books and other writings, musical works, films, paintings and other works, and computer programs. ▪ For audiovisual works: The producer, the author of the scenario, the composer of o Model of creation of right – Works are protected by the sole the music, the film director, and the fact of their creation, irrespective of their mode or form of author of the work so adapted. expression, as well as their content, quality and purpose. Thus, it does not matter if, in the eyes of some critics, a certain work Infringement of Copyright – it consists infringing any right has little artistic value. So long as it has been independently secured or protected under the Code. It may also consist created and has a minimum creativity, the same enjoys in aiding or abetting such infringement. The law also copyright protection. (From the moment of Creation without provides for the liability of a person who at the time when a need for registration). copyright subsists in a work has in his possession an article which he knows, or ought to know, to be an infringing copy o Term of copyright – In general, the term of protection of of the work for the purpose of: copyright for original and derivative works is the life of the author plus fifty (50) years after his death. The Code specifies ✓ Selling or letting for hire, or by way of trade offering or the terms of protection for the different types of works. In exposing for sale or hire, the article; This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seek legal recourse. Page | 3  use, the factors to be considered shall include the ✓ Distributing the article for the purpose of trade, or for following: any other purpose to an extent that will prejudice the rights of the copyright owner in the work; or ✓ The purpose and characters of the use, including whether such use if of a ✓ Trade exhibit of the article in public. commercial nature or is for non-profit educational purposes. Works that can be protested by Copyrights ✓ The nature of the copyrighted work. (Copyrightable Works) ✓ The amount and substantiality of the portion ✓ Books, pamphlets, articles and other writings used in relation to the copyrighted work as a whole. ✓ Periodicals and newspapers ✓ The effect of the use upon the potential ✓ Lectures, sermons, addresses, dissertations prepared market for or value of the copyrighted work. for oral delivery, whether or not reduced in writing or other material form - - END - - ✓ Letters ✓ Dramatic or dramatic-musical compositions, choreographic works or entertainment in dumb shows ✓ Musical compositions, with or without words ✓ Works of drawing, painting, architecture, sculpture, engraving, lithography or other works of art; models or designs for works of art ✓ Original ornamental designs or models for articles of manufacture, whether or not registrable as an industrial design, and other works of applied art ✓ Illustrations, maps, plans, sketches, charts and three- dimensional works relative to geography, topography, architecture or science ✓ Drawings or plastic works of a scientific or technical character ✓ Photographic works including works produced by a process analogous to photography; lantern slides ✓ Audiovisuals works and cinematographic works and works produced by a process analogous to cinematography or any process for making audio- visual recordings ✓ Pictorial illustrations and advertisements ✓ Computer programs ✓ Other literary, scholarly, scientific and artistic works Works that are not protected by Copyrights (Non- copyrightable Works) ✓ Any idea, procedure, system, method or operation, concept, principle, discovery or mere data as such, even if they are expressed, explained, illustrated or embodied in a work; ✓ News of the day and other miscellaneous facts having the character of mere items of press information; or ✓ Any official text of a legislative, administrative or legal nature, as well as any official translation thereof. ▪ Doctrine of Fair Use – It is a privilege to use the copyrighted materials in a reasonable manner without the consent of the copyright owner or as copying the theme or ideas rather than their expression. It is an exception to the copyright owner’s monopoly of the use of the work to avoid stifling the very creativity which that law is designed to foster. In determining whether the use made of a work in any particular case is fair This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seek legal recourse. Page | 4  INTELLECTUAL PROPERTY CODE 1. Statement I: Copyright refers to literary or artistic works which are intellectual creations Statement II: Patent refers to technical solution of a problem which is new, involves an inventive step and is industrially applicable Statement III: Trademark refers to any sign to distinguish the goods or services of an enterprise a. Only Statement I is true c. Only Statement III is true b. Only Statement II is true d. All statements are true 2. It refers to an intellectual property which gives an exclusive right to the inventor over his new, inventive and useful product, process or an improvement of a product or process a. Copyright c. Franchise b. Trademark d. Patent 3. How is a patent as an intellectual property or right created or protected by law? a. By invention by the inventor c. By notarization of the invention b. By registration with Intellectual Property Office d. By experimenting over the invention 4. What is the legal term of a patent that gives its owner the exclusive right to use the covered invention? a. 20 years c. 15 years b. 10 years d. 25 years 5. Which of the following is not a requisite of a patentable invention? a. It must involve a technical solution to a problem in any field of human activity b. It must be new or novel d. It must be industrially applicable c. It must involve inventive step e. It must be made by a scientist 6. Statement I: Any technical solution of a problem in any field of human activity which is new, involves an inventive step and is industrially applicable shall be patentable Statement II: Patentable invention may be, or may relate to, a product, or process, or an improvement of any of the foregoing a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 7. Statement I: An invention shall not be considered new if it forms part of a prior art Statement II: An invention involves an inventive step if, having regard to prior art, it is not obvious to a person skilled in the art at the time of the filing date or priority date of the application claiming the invention a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 8. Statement I: The right to a patent belongs to the inventor only Statement II: When two or more persons have jointly made an invention, the right to a patent shall belong to them jointly a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 9. Statement I: The person who commissions the work shall own the patent, unless otherwise provided in the contract Statement II: An application for patent by any person who has previously applied for the same invention in another country which by treaty, convention, or law affords similar privileges to Filipino citizens, shall be considered as filed as of the date of filing the foreign application a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 10. In case the employee made the invention in the course of his employment contract, the patent shall belong to: Statement I: The employee, if the inventive activity is part of his regular duties even if the employee uses the time, facilities and materials of the employer Statement II: The employer, if the invention is the result of the performance of his regularly-assigned duties, unless there is an agreement, express or implied, to the contrary a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seekPage legal | 5 recourse.  11. Statement I: No patent may be granted unless the application identifies the inventor Statement II: An applicant who is not a resident of the Philippines must appoint and maintain a resident agent or representative in the Philippines a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 12. Statement I: After publication of a patent application, any interested p[arty may inspect the application documents filed with the Intellectual Property Office Statement II: Following the publication of the patent application, any person may present observations in writing concerning the patentability of the invention. Such observations shall be communicated to the applicant who may comment on them a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 13. The making, using, offering for sale, selling or importing a patented product or a product obtained directly or indirectly from a patented process, or the use of a patented process without the authorization of the patentee constitutes a. Patent infringement c. Copyright infringement b. Trademark infringement d. Double sale 14. This test of patent infringement means that a resort must be had, in the first instance, to the words of the claim a. Literal infringement test c. Dominancy test b. Doctrine of equivalents infringement test d. Holistic test 15. This test of patent infringement means that infringement also takes place when a device appropriates a prior invention by incorporating its innovative concept and, although with some modification and change, performs substantially the same function in substantially the same way to achieve substantially the same result a. Literal infringement test c. Dominancy test b. Doctrine of equivalents infringement test d. Holistic test 16. Any interested person may petition to cancel the patent or any claim thereof, or parts of the claim, on any of the following grounds a. That the patent is invalid b. That what is claimed as the invention is not new or patentable c. That the patent does not disclose the invention in a manner sufficiently clear and complete for it to be carried out by any person skill in the art d. All of the above 17. If two or more persons have made the invention separately and independently of each other, the right to the patent shall belong to the person who filed an application for such invention, or where two or more applications are filed for the same invention, to the applicant who has the earliest filing date or, the earliest priority date a. First-to-File Rule c. Third-to-File Rule b. Second-to-File Rule d. Fourth-to-File Rule 18. An application for patent filed by any person who has previously applied for the same invention in another country which by treaty, convention or law affords similar privileges to Filipino citizens, shall be considered as filed as of the date of filing the foreign application a. Right of Priority c. Reciprocity Rule b. First-to-File Rule d. Reverse Reciprocity Rule 19. This defense may be set up by a respondent in an action for patent infringement when the respondent is any prior user, who, in good faith was using the invention or has undertaken serious preparations to use the invention in his enterprise or business, before the filing date or priority date of the application on which a patent is granted a. Doctrine of fair use c. Doctrine of good faith b. Doctrine of prior use d. Doctrine of bad faith 20. Statement I: In an action for infringement, the defendant, in addition to other defenses available to him, may show the invalidity of the patent, or nay claim thereof This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seekPage legal | 6 recourse.  Statement II: In an action for infringement, if the court shall find the patent or any claim to be invalid, it shall cancel the same a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 21. It is any distinctive word, name, symbol, emblem, sign, or device, or any combination thereof, adopted, and used by a manufacturer or merchant on his goods to identify and distinguish them from those manufactured, sold or dealt by others a. Patent c. Copyright b. Trademark d. Tradename 22. The function of trademark is a. To point out distinctly the origin or ownership of the goods to which it is affixed b. To secure to him, who has been instrumental in bringing into the market a superior article of the merchandise, the fruit of his industry and skill c. To protect the manufacturer against substitution and sale of an inferior and different article as his product d. All of the above 23. Modern authorities on trademark law view trademarks as performing three distinct functions a. The indicate origin or ownership of the articles to which they are attached b. They guarantee that those articles come up to a certain standard of quality c. They advertise the articles they symbolize d. All of the above 24. How is the right over a trademark, service mark or collective mark created or protected by law? a. By its usage of owner b. By its registration with Intellectual Property Office c. By its publication in a newspaper of general circulation d. By notarization of the mark 25. Which of following marks may be registered before Intellectual Property Office for protection? a. Marks consisting exclusively of signs that are generic for the goods or services that they seek to identify b. Marks consisting of color along c. Marks consisting of shapes only d. Marks consisting of combination of color, shapes and drawing 26. Which of the following marks may be registered before Intellectual Property Office for protection? a. Marks consisting of immoral, deceptive or scandalous matter, or matter which may disparage or falsely suggest a connection with persons, living or dead, institutions, beliefs, or national symbols, or bring them into contempt or disrepute b. Marks which are unlikely to mislead the public, particularly as to the nature, quality, characteristics or geographical origin of the goods or service c. Marks consisting of the flag or coat of arms or other insignia of the Philippines or any of its political subdivisions, or of any foreign nation, or any simulation thereof d. Marks identical to a registered mark belonging to a different proprietor or a mark with an earlier filing or priority date 27. What is the term and life of a trademark? a. It has a term of 10 years which is subject to unlimited times of renewal, thus, it has indefinite life b. It has a term of 5 years which is subject to unlimited times of renewal, thus, it has definite life c. It has a term of 20 years which is subject to unlimited times of renewal, thus, it has indefinite life d. It has a term of 15 years which is subject to unlimited times of renewal, thus, it has definite life 28. A mark cannot be registered if it a. Consists of immoral, deceptive, or scandalous matter, or matter which may disparage or falsely suggest a connection with persons, living or dead, institutions, beliefs, or national symbols, or bring them into contempt or disrepute b. Consists of the flag or coat of arms or other insignia of the Philippines or any of its political subdivisions, or any foreign nation or any simulation thereof This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seekPage legal | 7 recourse.  c. Consists of a name, portrait or signature identifying a particular living individual except by his written consent, or the name, signature or portrait of a deceased President of the Philippines, during the life of his widow, if any, except by written consent of the widow d. All of the above 29. Statement I: The Dominancy test focuses on the similarity of the prevalent or dominant features of the competing trademarks that might cause confusion, mistake or deception in the mind of the purchasing public Statement II: The Holistic or Totality test necessitates a consideration of the entirety of the marks as applied to the products, including labels and packaging, in determining confusing similarity a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 30. Any person who shall, without the consent of the owner of the registered mark, use in commerce or any reproduction, counterfeit, copy, or colorable imitation of a registered mark or the same container or a dominant feature thereof in connection with the sale, offering for sale, distribution, advertising of any goods or services including other preparatory steps necessary to carry out the sale of any goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive a. Infringement of trademark c. Patenting of trademark b. Copyrighting of trademark d. Unfair competition of trademark 31. To establish trademark infringement, the following elements must be shown a. The validity of the mark b. The plaintiff’s ownership of the mark c. The use of the mark or its colorable imitation by the alleged infringer results in “likelihood of confusion” d. All of the above 32. Statement I: A mere distributor and not the owner cannot assert any protection from trademark infringement as it had no right in the first place to the registration of the disputed trademarks Statement II: The crucial issue in any trademark infringement case is the likelihood of confusion, mistake or deceit as to the identity, source or origin of the goods or identity of the business as a consequence of using a certain mark a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 33. In determining the likelihood of confusion, the following must be considered a. The resemblance between the trademarks b. The similarity of the goods which the trademarks are attached c. The likely effect on the purchaser d. All of the above 34. Statement I: Infringement of trademark is the unauthorized use of a trademark Statement II: Unfair competition is the passing off of one’s goods as those of another a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 35. Statement I: In infringement of trademark, fraudulent intent is unnecessary Statement II: In unfair competition, fraudulent intent is essential a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 36. Statement I: In infringement of trademark, the prior registration of the trademark is a prerequisite to the action Statement II: In unfair competition, registration is not necessary a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 37. Statement I: A certificate of registration shall remain in force for 10 years Statement II: A certificate of registration may be renewed for periods of 10 years at its expiration a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seekPage legal | 8 recourse.  38. Statement I: The owner of a registered mark may recover damages from any person who infringes his rights Statement II: The measure of the damages suffered shall be either the reasonable profit which the complaining party would have made, had the defendant not infringed his rights, or the profit which the defendant actually made out of the infringement a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 39. Statement I: A registered mark shall have no effect against any person who, in good faith, before the filing date or the priority date, was using the mark for the purposes of his business or enterprise Statement II: Where an infringer who is engaged solely in the business of printing the mark or other infringing materials for others is an innocent infringer, the owner of the right infringed shall be entitled as against such infringer only to an injunction against future printing a. Only Statement I is true c. Both are false b. Only Statement II is true d. Both are false c. Both are true 40. Is an intangible incorporeal rights to certain literary, scholarly, scientific and artistic productions granted by status to the author or creator of the work, and giving him, his heirs and assigns economic rights? a. Copyright c. Patent b. Trademark d. Unfair competition 41. It refers to every production in the literary, scientific and artistic domain such as books and other writings, musical works, films, paintings and other works, and computer programs a. Original work c. Counterfeited work b. Imitated work d. Copied work 42. As a general rule, what is the term of copyright? a. The term of protection of copyright for original and derivative works is the life of the author plus (50) years after his death b. The term of protection of copyright for original and derivative works is the life of the author plus (20) years after his death c. The term of protection of copyright for original and derivative works is the life of the author plus (10) years after his death d. The term of protection of copyright for original and derivative works is the life of the author plus (30) years after his death 43. The following derivative works shall also be protected by copyright: Statement I: Dramatizations, translations, adaptations, abridgments, arrangements, and other alterations of literary or artistic works; and Statement II: Collections of literary, scholarly or artistic works, and compilations of data and other materials which are original by reason of the selection or coordination or arrangement of their contents a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 44. Statement I: The natural person whose name is indicated on a work is the usual manner as the author shall, in the absence of proof to the contrary, be presumed to be the author of the work Statement II: The person or body, corporate whose name appears on an audio-visual work in the usual manner shall, in the absence of proof to the contrary, be presumed to be the maker of said work a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 45. Copyright or economic rights shall consist of the exclusive right to carry out, authorize, or prevent the following acts, except a. Reproduction of the work or substantial portion of the work b. Dramatization, translation, adaptation, abridgment, arrangement, or other transformation of the work c. Public display of the original or a copy of the work d. None of the above 46. Statement I: Copyright, in the strict sense of the term is purely a statutory right. Being a mere statutory grant, the rights are limited to what the statute confers Statement II: Copyright can cover only the works failing within the statutory enumeration or description a. Only Statement I is true c. Both are true This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seekPage legal | 9 recourse.  b. Only Statement II is true d. Both are false 47. Statement I: A person to be entitled to a copyright must be the original creator of the work Statement II: The original creator of a work must have created it by his own skill, labor and judgment without directly copying or evasively imitating the work of another a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 48. Statement I: To be entitled to copyright, the thing being copyrighted must be original, created by the author through his own judgment without directly copying or evasively imitating the work of another Statement II: The format or mechanics of a TV show is not copyrightable as copyright does not extend to ideas, procedures, processes, systems, methods of operation, concepts, principles or discoveries regardless of the form in which they are described, explained, illustrated or embodied a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 49. After the ____________ sale of the lawfully made copy of the copyrighted work, anyone who is the owner of that copy can sell or dispose of that copy in any way without any liability for copyright infringement a. First c. Third b. Second d. Fourth 50. It is committed by any person who shall use original literary or artistic works, or derivative works without the copyright owner’s consent in such a manner as to violate the specified economic rights a. Copyright infringement c. Patent infringement b. Trademark infringement d. Unfair Competition infringement 51. The fair use of a copyrighted work for criticism, comment, news reporting, teaching including multiple copies for classroom use, scholarship, research and similar purposes is not infringement of copyright a. Doctrine of Equal Use c. Doctrine of Just Use b. Doctrine of Fair Use d. Doctrine of Objective Use 52. An infringement occurs when a device appropriates a prior invention by incorporating its innovative concept and, albeit with some modification and change, performs substantially the same function in substantially the same way to achieve substantially the same result a. Doctrine of Equivalents c. Doctrine of Appropriation b. Doctrine of Incorporation d. Doctrine of Modification 53. In copyright, the factors to consider in determining fair use are the following a. The purpose and character of the use, including whether such use is of a commercial nature or is for non- profit educational purposes b. The amount of substantiality of the portion used in relation to the copyrighted work as a whole c. The effect of the use upon the potential market for or value of the copyrighted work d. All of the above 54. Statement I: Infringement consists in the doing by any person, without the consent of the owner of the copyright, of anything the sole right to do which is conferred by the statute on the owner of the copyright Statement II: For there to be substantial reproduction of a book, it does not necessarily require that the entire copyrighted work, or even a large portion of it, be copied. If so much is taken that the value of the original work is substantially diminished, there is an infringement of copyright a. Only Statement I is true c. Both are true b. Only Statement II is true d. Both are false 55. Any person infringing a right under the law on copyright shall be liable a. To an injunction restraining such infringement b. To pay to the copyright proprietor or his assigns or heirs such actual damages, including legal costs and other expenses, as he may have incurred due to the infringement as well as the profits the infringer may have made due to such infringement c. To deliver under oath, for impounding during the pendency of the action, upon such terms and conditions as the court may prescribe, sales invoices, and other documents evidencing sales, implements for making them d. All of the above Page This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seek legal| recourse. 10  BANK SECRECY LAWS exceptions in Republic Act No. 1405 and in other laws as enumerated below: [An act prohibiting disclosure of or inquiry into deposits with any banking institution (Republic Act No. 1405) a.k.a. Bank Secrecy Law on Exceptions under the Law on Secrecy of Bank deposits Domestic Bank Deposit] o Section 2 of Republic Act No. 1405 provides that bank Absolute Confidentiality of Domestic Bank Deposits and deposits and government bond investments may be Investments in Government Bonds examined, inquired and looked into the following instances: o All deposits of whatever nature in banks or banking institutions in the Philippines and investments in ✓ Upon written permission or consent in writing by the government bonds are absolutely confidential in nature depositor. For consent to be valid, it should be made (Sec. 2, Rep. Act No. 405). knowingly, voluntarily and with sufficient awareness of the relevant circumstances and likely ✓ Deposits refer to money or funds placed with a bank consequences. that can be withdrawn on the depositor’s order or demand, such as deposit accounts in the form of ✓ In case of impeachment of the President, Vice- savings, current and time deposits. President, members of the Supreme court, members of the Constitutional Commission (Commission on ✓ Deposits are characterized as being in the nature of a Election, Civil Service Commission and Commission simple loan. The placing of deposits in a bank creates on Audit) and the Ombudsman for culpable a creditor-debtor relationship between the depositor vi8olation of the Constitution, treason, bribery, graft and the bank. As such, the bank, being the debtor, and corruption, other high crimes or betrayal of has the obligation to pay a certain sum of money to public trust. (Art. XI, Sec. 2, 1987 Philippine the depositor, being the creditor. Constitution). ✓ Investments in Government bonds refer to ✓ Upon order of a competent court in cases of bribery investment in bonds issued by the Government of the or dereliction of duty of public officials. Philippines, its political subdivisions and instrumentalities. Government bonds are debt ✓ In case where the money deposited or invested is the securities which are unconditional obligations of the subject matter of the litigation. The money deposited State, and backed by its full taxing power. should be the very thing in dispute. ✓ Government bonds include treasury bills, treasury Exceptions under Other Laws. Bank Deposits and Investments notes, retails treasury bonds, dollar linked peso nots, may be examined, inquired or looked into as provided under and other risk-free bonds. other laws in the following instances: ✓ The General Banking Law prohibits bank directors, o The Ombudsman has the power to issue subpoena and officer, employees or agents from disclosing to any subpoena duces tecum, take testimony in any unauthorized person, without order of a competent investigation or inquiry, as well as examine and access court, any information relative to funds or properties bank accounts and records. belonging to private individuals, corporations, or any other entity in the custody of the bank. (Sec. 55 [b], o The power of the Ombudsman to subpoena deposit Rep. Act No. 8791) The Thrift Banks Act and the Rural information of a government official may be exercised Banks Act likewise prohibit any bank officer, when the following conditions concur: (1) there must be a employee or agent from disclosing any information case pending before a court of competent jurisdiction; (2) on such funds or properties. (Sec. 21 [a], Rep. Act the account must be clearly identified; (3) the inspection No. 7906 & Sec. 26 [a], Rep. Act No. 7353) must be limited to the subject matter of the pending case, Prohibited Acts and Persons Liable. and (4) the bank personnel and the account holder must be notified to be present during the inspection. The following are criminally liable under this law: o Bank deposits of a public official, his spouse and o Any person or government official who, or any unmarried children may be taken into consideration in the government bureau or office that, examines, inquires or enforcement of Section 8 of the Anti-Graft and Corrupt looks into a bank deposit or government bond investment Practices Act (Re. Act No. 3019). in any of the instances not allowed in Section 2; o Directors, officers, stockholders and related interests who o Any official or employee of a banking institution who contract a loan or any form of financial accommodation makes disclosure concerning Bank deposits to another in with their bank or related bank are required to execute a any instance not allowed by law (Sec. 3, Rep. Act No. written waiver of secrecy of deposits pursuant to the New 1405); and Central Bank Act. (Sec. 26, Rep. Act No. 7653) o Any person who commits a violation of any of the o The Commissioner of Internal Revenue is authorized to provisions of the law (Sec. 5, Rep. Act No. 1405). inquire into bank deposit accounts in relation to: (1) an application for compromise of tax liability of a o Any bank official, director, employee or agent who determination of a decedent’s gross estate under The discloses information relative to funds or properties in the National Internal Revenue Code (Rep. Act No. 8424, as custody of the bank may also be held liable under the amended by Rep. Act. No. 10021); and (2) a request for tax applicable provisions of the General Banking Law, Thrifts information of specific taxpayers made by a foreign tax Banks Act and Rural Banks Act. authority pursuant to a tax treaty under the Exchange of Information on Tax Matters Act of 2009 (Rep. Act No. Instances when Confidentiality of Domestic Bank Deposits is 8424, as amended by Rep. Act No. 10021). Not Absolute o The Anti-Money Laundering Council may be authorized to o Bank deposits and investments in government bonds may examine and inquire into bank deposits or investments be examined, inquired or looked into under limited with banks or nonbank financial institutions – (1) with court order, when there is probable cause that the Page This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seek legal| recourse. 11  deposits or investments are related to an unlawful activity or a money laundering offense (Sec. 3 [i] and 4 of Rep. Act o Disclosure by a bank officer or employee upon order of the No. 9160); and (2) without need of court order, when court in connection with a deposit in a closed bank that probable cause exists that a particular deposit or was in the perpetration of anomalies. investment with any banking institution is related to certain predicate crimes, such as kidnapping for ransom, Penalties for Violation of Republic Act No. 1405 will subject violation. the offender, upon conviction, to the following penalties: o The Bangko Sentral is authorized to – (1) inquire into or ✓ Imprisonment of not more than five years; examine bank deposits or investments in the course of a ✓ Fine of not more than P20,000; or periodic or special examination to ensure compliance with ✓ Both imprisonment and fine. the Anti-Money Laundering Law, in accordance with the rule of examination of the Bangko Sentral (Sec. 11, Rep. Foreign Currency Deposit Act of the Philippines (Republic Act Act No. 9160, as amended), and (2) conduct annual testing No. 6426) a.k.a Foreign Currency Deposit Secrecy Law which is limited to the determination of the existence and true identity of the owners of numbered accounts (Sec. 9, ▪ Absolute Confidentiality of Foreign Currency Deposits Rep. Act No. 9160, as amended). o All foreign currency deposits are absolutely confidential and cannot be examined, inquired, or o The Philippine Deposit Insurance Commission and the looked into by any person, government official, bureau Bangko Sentral may inquire into bank deposits when there or office, whether judicial or administrative or is a finding of unsafe or unsound banking practices. (Sec. legislative, or any other private or public entity. 8, Rep. Act No. 3591, as amended). o Foreign currency deposits are also exempt from o The Court of Appeals, designate as a special court, may attachment, garnishment, or any other order or process issue an order authorizing law enforcement officers to of any court, legislative body, government agency or examine and gather information on the deposits, any administrative body whatsoever. (Sec. 8, Rep. Act. placements trust accounts, assets and records in a bank or No. 6426). financial institution in connection with anti-terrorism case (Rep. Act No. 9372). o Foreign currency deposits refer to funds in foreign currencies which are accepted and held by authorized o The Commission on Audit is authorized to examine and banks in the regular course of business with the audit government deposits pertaining to the revenue and obligation to return an equivalent amount to the owner receipts of, and expenditures or uses of funds and thereof, with or without interest. properties, owned or held in trust by, or pertaining to, the Government or any of its subdivisions, agencies or o Prohibited Acts and Persons Liable. The following are instrumentalities, including government-owned and liable under this law: controlled corporations with original charters. (See Art. IX- D, 1987 Constitution and Pres. Dec. No. 1445). ✓ Any person or government official who, or any government bureau or office that, examines, o The Presidential Commission on Good Government, in inquires or looks into a foreign currency deposit the conduct of its investigations to recover ill-gotten without the written permission of the depositor wealth accumulated by Former President Ferdinand E. (Sec. 8, Rep. Act No. 6426); Marcos, his immediately family relatives, subordinates and close associates may issue subpoenas requiring the ✓ Any official or employee of a banking institution attendance and testimony of witnesses and/or the who makes a disclosure concerning foreign production of books, papers, contracts, records, currency deposits to another, in any instances not statement of accounts and other documents. (Sec. 3 , allowed by law (See Sec. 10, Rep. Act No. 6426); Exec. Order No. 1 ). ✓ Anyone who shall attach, garnish, or subject the Exceptions under Jurisprudence or Decision by Supreme Court foreign currency deposit to any other order or process of any court, legislative body, government o Plunder is analogous to bribery. The exception in the law agency or any other administrative body (Sec. 8, that is applicable in bribery also applies to plunder. The Rep. Act No. 6426); and overt or criminal acts as described in Section 1 (d) of Republic Act No. 7080 would make the similarity between ✓ Any person who commits a willful violation of any plunder and bribery even more pronounced since bribery of the provisions of Republic Act. No. 6425 or is essentially included among these criminal acts. regulation issued by the Monetary Board pursuant to the said law (Sec. 10, Rep. Act No. 6426). o Cases of unexplained wealth are similar to eases of bribery or dereliction of duty and no reason is seen why Instances when confidentiality of Foreign Currency Deposits is these two classes of cases cannot be excepted from the Not Absolute rule making bank deposits confidential. ▪ Foreign currency deposits may be examined, inquired or Authorized Disclosure by authorized and responsible bank looked into under the limited exceptions in Republic Act No. officials are allowed in the following instances: 6426 and in other laws. o Reporting of unclaimed balances to the Treasurer of the o Exception under The Foreign Currency Deposit Act. Philippines (Secs. 1 & 2, Act No. 3936); ✓ Foreign currency deposits may be examined, o Turn-over to the Commissioner of Internal Revenue of the inquired or looked into when there is written amount in bank accounts as may be sufficient to satisfy the permission of the depositor. (Only one exception writ of garnishment issued to collect delinquent taxes under R.A. 6426). (Secs. 205 & 208, Rep. Act No. 8424); and o Exceptions under Other Laws o Submission of report, and turn-over to, the court officer or executing sheriff of garnished amounts pursuant to a writ ✓ Directors, officers, stockholders and related of garnishment in satisfaction of a judgment. interest who construct a loan or any form of Page This document is strictly private and confidential and should not be shared or distributed to a third party. Any violation gives Pinnacle the right to seek legal| recourse. 12  financial accommodation with their bank or o Exceptions under Jurisprudence on Ground of Equity related bank are required to execute a written waiver of secrecy of deposits pursuant to The New ✓ Account of a Non-resident Alien. The garnishment Central Bank Act. (Sec. 26, Rep. Act No. 7653). of a foreign currency deposit account of a non- resident alien found guilty of raping a minor was ✓ The Commissioner of Internal Revenue is allowed on the basis of equity. (). authorized to inquire into bank deposit accounts in relation to: (1) an application for compromise of ✓ Account of a Co-payee of check who filed a suit for tax liability or a determination of a decedent’s recovery of sum of money was considered, in a pro gross estate under The National Internal Revenue hac vice ruling by the Supreme Court, as a Code (Rep. Act No. 8424, as amended by Rep. Act depositor in view of the distinctive circumstances No. 10021); and (2) a request for tax information of the case. for specific taxpayers made by a foreign tax authority pursuant to a tax treaty under The Penalties of Violation of Republic Act No. 6426: Exchange of Information on Tax Matters Act of 2009 (Rep. Act No. 8424, as amended by Rep. Act ✓ Imprisonment of not less than one (1) year but not No. 10021). more than five (5) years; or ✓ Fine of not less than Five Thousand Pesos ✓ The Anti-Money Laundering Council may be (P5,000.00) but not more than Twenty-Five authorized to examine and inquire into bank Thousand Pesos (P25,000.00); or deposits or investments with banking or non-bank ✓ Both imprisonment and fine. financial institutions – (1) with court order, when there is probable cause that the deposits or The following sanctions may also be imposed against a bank or investments are related to an unlawful activity or a any bank director and officer for violation of the provisions of money laundering offense (Secs. 3 (i) and 4 of Rep. Republic Act No. 6426 and Bangko Sentral regulation issued Act No. 9160); and (2) without need of court order, pursuant to said law: when probable cause exists that a particular deposit or investment with any banking institution ✓ Revocation of the authority of the bank to accept is related to certain predicate crimes, such as new foreign currency deposits; and kidnapping for ransom, violation of the ✓ Administrative sanctions provided under Section Comprehensive Dangerous Drugs Act, hijacking 37 of the New Central Bank Act (Rep. Act No. and other violations under Republic Act No. 6235, 7653), as may be applicable. destructive arson and murder (Sec. 11 of Republic Act No. 9160). ✓ The Bangko Sentral is authorized to – (1) inquire into or examine bank deposits and investments in the course of a periodic or special examination to ensure compliance with The Anti-Money Laundering Act, in accordance with the rules of examination of the Bangko Sentral (Sec. 11, Rep. Act No. 9160, as amended); and (2) conduct annual testing which is limited to the determination of the existence and true identity of the owners of numbered accounts (Sec. 9, Rep. Act No. 9160, as amended). ✓ The Philippine Deposit Insurance Commission and the Bangko Sentral may inquire into bank deposits when there is a finding of unsafe or unsound banking practices. (Sec. 8, Rep. Act No. 3591, as amended). ✓ The Commission on Audit is authorized to examine and audit government deposits pertaining to the revenue and receipts of, and expenditures or uses of funds and properties, owned or held in trust by, or pertaining to, the Government or any of its subdivisions, agencies or instrumentalities, including government-owned and controlled corporations with original charters. (See Art. IX-D, 1987 Constitution and Pres. Dec. No. 1445). ✓ The Presidential Commission on Good Government, in the conduct of its investigations to recover ill-gotten wealth accumulated by former President Ferdinand E. Marcos, his immediate family, relatives, subordinates and close associates, may issue subpoenas requiring the attendance and testimony of witnesses and/or the production of books, papers, contracts, records, statement of accounts and other documents. (Sec. 3 , Exec. Or