Lesson II: INTELLECTUAL PROPERTY

Imagine a world without inventions: there would be no electrical light, no

automobiles, telephones or Internet. Likewise, a world without intellectual creation
would mean no books, movies or entertainment. The history of human civilization and
progress is needed the history of invention and innovation, as these have profoundly
shaped and changed our world and the way we live.

TANGIBLE VS. INTANGIBLE

 Tangible Property – discernible by senses.

 Intangible Property – incapable of being perceived by the senses.

Intellectual property is a set of legal rights that results from intellectual activity
in the industrial, literary, scientific and artistic fields; they do not apply the physical
object but instead to the intellectual creation as such.
Intellectual property is governed by a special law, Republic Act 8293 (IP
Code). Under the IP code, the term intellectual property right consists of:
1. Copyright and Related Rights
2. Trademarks and Service Marks
3. Geographic Indications
4. Industrial Designs
5. Patents
6. Layout-Designs or Topographies of Integrated Circuits
7. Protection of Undisclosed Information

TRADEMARK
A trademark is a sign or symbol that distinguishes the goods or services of one
enterprise from another in commerce. It is a word, device, symbol used to indicate the
origin, quality and ownership of a product or service.
Purposes of Trademark
1. Indicate the source or origin of goods or services
2. Distinguish the goods or services from those offered by another
3. Assure that the goods are of a certain quality
4. Provide consumers with a tool in making decisions about the purchases of
goods.

Businesses use marks to indicate that the goods came from them and the goods
are of a certain quality.
 The decision of consumers to purchase one product
over another depends mostly on the marks carried by such
goods, hence, the importance of providing a legal
infrastructure for the protection of marks.

COPYRIGHT
Copyright consists of a bundle of rights granted to
authors and artists to protect expressive works against unauthorized reproduction or
distribution by third parties. It protects original works of authorship, including literary,
artistic and other works.
Copyright is based on the principle of idea/expression dichotomy, which means
that while the authors have the right to theirs original expression, the public is
encouraged to build upon ideas conveyed by a work.

PATENT
A set of rights granted to the inventor of a product or process that is new,
involves in inventive step and is capable of industrial application.
A grant from the government that permits the owner to exclude others from
making, using, or selling an invention.
A negative right since it affords the right to exclude others from making, using,
selling or importing a patented invention.

EXAMPLES OF INVENTIONS

 Door lock, by Linus Yale, 1844

 Sewing Machine, Isaac Singer, 1855

 Telephone, Alexander Graham Bell, 1876

 Electric Light, Thomas Edison, 1880

 Roll film camera, George Eastman, 1888

 Shaving Razor, King Gillette, 1904

 Airplane, Wilbur and Orville Wright

 The mobile phone was invented by Motorola in 1973

The current mobile phone that we are using now may

contain hundreds of patents for the internal antenna, the
screen, the keypad the battery, etc.

PREAMBLE TO FILIPPO’S PATENT READS:

“He refuses to make such machine available to the
public in order that the fruit of his genius and skill may not
be reaped by another without his will and consent; and that
if he enjoyed some prerogative concerning this, he would
disclose it to all”
  Why was there a need to demand state intervention before the inventor agreed
to release knowledge or information about his invention?
 Isn’t it that knowledge or information is a public good that is available to
everyone?

Non-rivalrous
- Information may be enjoyed by others at the same time.
- Consumption of a public good by one person does not leave less for any other
consumer.
- Consumption of the good by one individual does not reduce its availability for
consumption by others.
Non-excludable
- Information cannot be provided privately, as it would be difficult, if not entirely
impossible, to exclude others from enjoying a public good.
- Costs of excluding non-paying beneficiaries who consume the good are so high
that no profit-making firm would supply the good.

 The non-rivalrous and non-excludable characteristics of information give rise to

the problem of free riders.
 Free riders are those who exploit the information without contributing to its
creation.
 Once information is out, you cannot take it back.

What is the significance of IP as an intangible property?

 In today’s knowledge economy, intangibles represent 80% of the company’s
assets, while tangibles represent only 20%.
FAQ ON PATENTS

Q. What is a Patent?
- A patent is grant issued by the government through the Intellectual Property
Office of the Philippines (IP Philippines)
- It is an exclusive right granted for a product, process or an improvement of a
product or process which is new, inventive and useful.
- This exclusive right gives the inventor the right to exclude others from making,
selling or using the product of his invention during the life of the patent.
- In return the patent owner must share the full description of his invention.
- This information on the patent is available to the public through the IP
Philippines Official Gazette & Library.

What rights does a patent owner have?

Rights of the patent owner:

- may decide who may or may not use the patented invention for the period in
which the invention is protected
- may give permission to, or license others to use the invention on agreed terms
- may sell the right to the patent to others
- may prevent others from making, using or selling the product of his invention
during the life of the patent
What is the term of a patent?
- the term of the patent protection is 20 years from the date of filing
 Why are Patents necessary?
- Provides incentives to individuals (recognition and material rewards)
- Assures the continuous enhancement of the quality of life
- Can be utilized for as basis for future research and will in turn promote further
creativity, innovation and development

RIGHT OF PRIORITY DATE

“A” Must be filed in Japan on

or before Feb. 7, 2011 to avail
Patent Application “A” was the effect of the filing date in
filed on Feb. 7, 2010 in the the PHILIPPINES
PHILIPPINES
PRIOR SALE in Japan
June 2010
What is the Patent Cooperation Treaty (PCT)?
- An agreement for International Cooperation
- An Alternate Route to the Paris Convention
- A “Filing System” NOT a “Granting System”
“B” files same application “C” files same application in
- Entered into force on January 1, 1978
in Japan MARCH 2010 Japan OCTOBER 2010
- 144 Contracting States as of June 2009 “A” filed in the Japan
DECEMBER 2010
- Philippines is 112th member
Benefits from PCT:
1. Facilities obtaining protection for inventions in any or all PCT contracting
States.
2. It provides for the filing of one patent application (the international
application), with effect in several States, instead of filing several separate
national and/or regional patent applications.
3. Gives applicant more time and a better basis for deciding whether and in what
countries to further pursue the patent application.
4. Means for evaluating chances of obtaining a patent.
5. Enables assessment of economic value of invention.

The PCT Procedure

 International Phase
 Filing
 International Search & Written Opinion
  International Publication
 International Preliminary Examination
 National Phase

PRIOR ART – Everything made available to the public by means of:

- Written Description
- Oral Description
- By Use

NON-PREJUDICIAL DISCLOSURE
Not Prejudicial to the filing of an Application:
1. Disclosure by the Inventor (Patent) or Maker (Utility Model) (must be filed
within one year from the time of disclosure)
2. Disclosure by the Designer (Industrial Design) (must be filed within six
months from the time of disclosure)
EINSTEIN PATENTS
- 45 Patents with Leo Szilard (1926 to 1933)
- Home Refrigeration Technology
- Explored practical applications for refrigeration cycles
- Patent rights sold to companies like Electrolux in Sweden
- He was a technical assistant at the Swiss Federal Patent Office on Bern
(examining patent applications)
How can I find the patent laws of various countries?
- Collection of Laws of Electronic Access (CLEA) provides easy access to
intellectual property legislation from different countries as well as to treaties
administered in WIPO
- List of URLs of regional and national of intellectual property offices

BASIC DIFFERENCES BETWEEN PATENT, UTILITY MODEL AND


CATEGORIES
Sub je c t Ma tte r o f Pro te c tio n
No ve lity
Inve ntive Ste p
Ind ustria l Ap p lic a b ility
Cla im
Orna me nta l Fe a ture s o f
sha p e , c o nfig ura tio n, fo rm,
o r a c o mb ina tio n the re o f
Te rm o f Pro te c tio n
PATENTABLE INVENTIONS
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.
INDUSTRIAL DESIGN
PATENT(INVENTION)
Ap p a ra tus (Pro d uc t) &
M e tho d (Pro c e ss)
Ye s
Ye s
Ye s
O nly o ne (1) g e ne ric c la im is
M o re tha n o ne (1) g e ne ric
c la im is a llo w e d a nd
d e p e nd e nt c la ims
No
Tw e nty (20) ye a rs fro m the
d a te o f filing w ith p a yme nt
o f a nnuitie s
UTILITY MODEL INDUSTRIAL DESIGN
Artic le o f ma nufa c ture
Ap p a ra tus (Pro d uc t) & (O v e ra ll a e sthe tic a nd
M e tho d (Pro c e ss) p le a sing a p p e ra nc e o f the
a rtic le o f ma nufa c ture .)
Ye s Ye s
No No
Ye s Ye s
a llo w e d . No limit o n the
O mnib us typ e o f c la im
numb e r o f d e p e nd e nt
c la ims.
No Ye s
Fiv e (5) ye a rs fro m the d a te
Se v e n (7) ye a rs fro m the
o f filing w ith 2 fiv e ye a r te rm
d a te o f filing w itho ut
re ne w a ls up o n p a yme nt o f
re ne w a l
fe e s