MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 1423
AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND EIGHT HUNDRED FIFTY, OTHERWISE KNOWN AS THE "PHILIPPINE INVENTORS INCENTIVE ACT"
WHEREAS, it is the policy of the Government to ensure that deserving investors are adequately encouraged and supported through appropriate incentives particularly in the production and marketing of useful inventions;
WHEREAS, Republic Act Numbered Three Thousand Eight Hundred Fifty, otherwise known as the "Philippine Investors Incentives Act" is no longer responsive to the needs of local investors.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines by virtue of the powers vested in me by the Constitution, do hereby order and decree, as part of the law of the land, the following amendments to Republic act Numbered Three Thousand Eight Hundred Fifty:
Section 1. A new section to be designated: Section 3 is hereby inserted after Section 2 of the same Act to read as follows:
"Sec. 3. Definition of Terms
"(a) "Invention" shall mean any new and useful machine manufactured product or...
Details
Amends
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Amended by
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Presidential Decrees
Amending Republic Act Numbered Three Thousand Eight Hundred Fifty, Otherwise Known as The "Philippine Inventors Incentive Act"
Presidential Decree No. 1423
Summary of Presidential Decree No. 1423
Definitions
- Invention: Any new and useful machine, manufactured product or substance, process or any improvement thereof that satisfies the requirement of novelty, utility and operativeness. (Section 3a)
- Innovation (Utility Model): Any new model of implement or tools of any industrial product or part of the same, which does not possess the quality of invention, but which is of practical utility by reason of its form, configuration, construction or composition. (Section 3b)
- Industrial Design: Any new original and ornamental design for an article of manufacture. (Section 3c)
Financial Aid for Inventors
- The Philippine Inventors Commission is authorized to grant financial aid to inventors, utility model makers or industrial designers, to enable them to develop, perfect and produce their inventions, utility models or industrial designs duly patented or those which are pending patent, up to pilot plant scale which would demonstrate their operability and industrial application, under certain terms and conditions. (Section 4b)
Invention Guarantee Fund
- An 'Invention Guarantee Fund' of six million pesos is created, with an initial amount of one million pesos appropriated from the Grants-In-Aid Fund of the National Science Development Board, and an additional five million pesos authorized to be appropriated from any unappropriated funds in the National Treasury. (Section 8)
- The fund shall be deposited with the Development Bank of the Philippines, which will administer and control the fund to be used to guarantee the unsecured portion of industrial loans for the exploitation and manufacture of any patented Filipino invention, utility model or industrial design. (Section 8)
- The Philippine Inventors Commissioner shall constitute a committee to identify technological research priorities to guide inventors' research work and enhance the economic viability and commercial applicability of their inventions. The committee's findings shall serve as a basis for the issuance of certifications required from the Philippine Inventors Commission for the guarantee facility. (Section 8)
- The guarantee facility shall be made available only upon certification by the Philippine Inventors Commission that the subject invention, utility model or industrial design, is among those determined by the Committee to be responsive to priorities and requirements of private industries and the national government. (Section 8)
Tax Exemptions for Local Inventions
- The manufacture of local inventions, utility models or industrial designs shall be exempted from taxes, license fees and permit fees, except customs duties and charges on imports, during the first five years from the date of the first sale, subject to certain conditions. (Section 12)
- The conditions are: (1) the manufacture is carried out by the inventor(s) as a small/medium scale industry with capitalization not exceeding four million pesos, (2) in case of a partnership or corporation, the majority interest belongs to the patentee(s), (3) the manufacturer shall keep separate books of accounts of the manufacture and sale of said inventions, and (4) the manufacturer is a Filipino citizen or an enterprise at least sixty percent of the capital of which is owned by such citizens. (Section 12)
Definitions
- Invention: Any new and useful machine, manufactured product or substance, process or any improvement thereof that satisfies the requirement of novelty, utility and operativeness. (Section 3a)
- Innovation (Utility Model): Any new model of implement or tools of any industrial product or part of the same, which does not possess the quality of invention, but which is of practical utility by reason of its form, configuration, construction or composition. (Section 3b)
- Industrial Design: Any new original and ornamental design for an article of manufacture. (Section 3c)
Financial Aid for Inventors
- The Philippine Inventors Commission is authorized to grant financial aid to inventors, utility model makers or industrial designers, to enable them to develop, perfect and produce their inventions, utility models or industrial designs duly patented or those which are pending patent, up to pilot plant scale which would demonstrate their operability and industrial application, under certain terms and conditions. (Section 4b)
Invention Guarantee Fund
- An 'Invention Guarantee Fund' of six million pesos is created, with an initial amount of one million pesos appropriated from the Grants-In-Aid Fund of the National Science Development Board, and an additional five million pesos authorized to be appropriated from any unappropriated funds in the National Treasury. (Section 8)
- The fund shall be deposited with the Development Bank of the Philippines, which will administer and control the fund to be used to guarantee the unsecured portion of industrial loans for the exploitation and manufacture of any patented Filipino invention, utility model or industrial design. (Section 8)
- The Philippine Inventors Commissioner shall constitute a committee to identify technological research priorities to guide inventors' research work and enhance the economic viability and commercial applicability of their inventions. The committee's findings shall serve as a basis for the issuance of certifications required from the Philippine Inventors Commission for the guarantee facility. (Section 8)
- The guarantee facility shall be made available only upon certification by the Philippine Inventors Commission that the subject invention, utility model or industrial design, is among those determined by the Committee to be responsive to priorities and requirements of private industries and the national government. (Section 8)
Tax Exemptions for Local Inventions
- The manufacture of local inventions, utility models or industrial designs shall be exempted from taxes, license fees and permit fees, except customs duties and charges on imports, during the first five years from the date of the first sale, subject to certain conditions. (Section 12)
- The conditions are: (1) the manufacture is carried out by the inventor(s) as a small/medium scale industry with capitalization not exceeding four million pesos, (2) in case of a partnership or corporation, the majority interest belongs to the patentee(s), (3) the manufacturer shall keep separate books of accounts of the manufacture and sale of said inventions, and (4) the manufacturer is a Filipino citizen or an enterprise at least sixty percent of the capital of which is owned by such citizens. (Section 12)