TITLE IV In every drain or aqueduct, the water, bed, banks and
SOME SPECIAL PROPERTIES floodgates shall be considered as an integral part of
CHAPTER 1
Waters
SECTION 1
Ownership of Waters
Article 502. The following are of public dominion:
(1) Rivers and their natural beds;
(2) Continuous or intermittent waters of
springs and brooks running in their natural
beds and the beds themselves;
(3) Waters rising continuously or intermittently
on lands of public dominion;
(4) Lakes and lagoons formed by Nature on
public lands, and their beds;
(5) Rain waters running through ravines or
sand beds, which are also of public dominion;
(6) Subterranean waters on public lands;
(7) Waters found within the zone of operation
of public works, even if constructed by a
contractor;
(8) Waters rising continuously or intermittently
on lands belonging to private persons, to the
State, to a province, or to a city or a
municipality from the moment they leave such
lands;
(9) The waste waters of fountains, sewers and
public establishments. (407)
Public waters are for the use of the general public
(Bautista v. Alarcon, 3 Phil. 631), therefore, if a river runs
thru two municipalities, neither may monopolize its use,
or obstruct its use by another
A river, whether navigable or not, is of public dominion,
since the law makes no distinction
Article 503. The following are of private ownership:
(1) Continuous or intermittent waters rising on
lands of private ownership, while running
through the same;
(2) Lakes and lagoons, and their beds, formed
by Nature on such lands;
(3) Subterranean waters found on the same;
(4) Rain waters falling on said lands, as long
as they remain within the boundaries;
(5) The beds of flowing waters, continuous or
intermittent, formed by rain water, and those
of brooks, crossing lands which are not of
public dominion.
the land of building for which the waters are intended.
The owners of lands, through which or along the
boundaries of which the aqueduct passes, cannot
claim ownership over it, or any right to the use of its
bed or banks, unless the claim is based on titles of
ownership specifying the right or ownership claimed.
(408)
It would seem under Art. 503 that there are private
waters, and yet the Constitution provides that all “water
... belong to the State.” (Sec. 2, Art. XII, 1987
Constitution).
It is believed that to be constitutional, this should apply
only to existing water rights prior to the Constitution.
(See Sec. 2, Art. XII, 1987 Constitution; Memorandum of
the Code Commission).
SECTION 2
The Use of Public Waters
Article 504. The use of public waters is acquired:
(1) By administrative concession;
(2) By prescription for ten years.
The extent of the rights and obligations of the use
shall be that established, in the first case, by the
terms of the concession, and, in the second case, by
the manner and form in which the waters have been
used. (409a)
Rules that Govern the Use of Public Waters—
(a) If acquired by administrative concession — the terms
of the concession.
Secs. 14-17 of the Irrigation Law (Act 2152 as amended
by Act 3523) govern the procedure for obtaining an
administrative concession.
Fishery privileges--The laws that govern the award of
fishery privileges in municipal waters are the provisions
of Secs. 67 and 69 of Act 4003, as amended by
Commonwealth Acts 115 and 471.
(b) If acquired by prescription for 10 years — the
manner and form of using the waters
Order of Preference in Obtaining a Concession—
(a) The first to appropriate is given a better right to ask
for a concession.
(b) When the claimants appropriated at the same time,
preference is given in accordance with the use intended,
in this order: 1) domestic use (like drinking, cooking)
2) agricultural use or power development for
agricultural purposes
3) industrial uses
4) fishponds
5) mining uses or milling connected with mining
purposes. (See Sec. 3, Act 2152)
Article 505. Every concession for the use of waters is
understood to be without prejudice to third persons.
(410)
Article 506. The right to make use of public waters is
extinguished by the lapse of the concession and by
non-user for five years. (411a)
Non-user applies also when the use was first acquired
by prescription.
Non-user is total or partial abandonment. Partial
abandonment results in a lawful use only of that part
not yet abandoned. (See 56 Am. Jur. 761). Fortuitous
events excuse non-users. (Op. Atty. Gen. Mar. 9, 1922)
SECTION 3
The Use of Waters of Private Ownership
Article 507. The owner of a piece of land on which a
spring or brook rises, be it continuous or intermittent,
may use its waters while they run through the same,
but after the waters leave the land they shall become
public, and their use shall be governed by the Special
Law of Waters of August 3, 1866, and by the Irrigation
Law. (412a)
Riparian Rights—
(a) right to the natural flow of the waters
(b) right of access to and use of the waters
(c) right of accretion. (See 56 Am. Jur. 726)
Governing Laws—
(a) Spanish Law of Waters of Aug. 3, 1866
(b) Irrigation Law (Act 2152, as amended)
(c) Civil Code
Article 508. The private ownership of the beds of rain
waters does not give a right to make works or
constructions which may change their course to the
damage of third persons, or whose destruction, by the
force of floods, may cause such damage. (413)
Article 509. No one may enter private property to
search waters or make use of them without
permission from the owners, except as provided by
the Mining Law. (414a)
Article 510. The ownership which the proprietor of a
piece of land has over the waters rising thereon does
not prejudice the rights which the owners of lower
estates may have legally acquired to the use thereof.
(415)
Pollution of the waters is actionable, unless due to force
majeure. (56 Am. Jur. 826).
Article 511. Every owner of a piece of land has the
right to construct within his property, reservoirs for
rain waters, provided he causes no damage to the
public or to third persons. (416)
SECTION 4
Subterranean Waters
Article 512. Only the owner of a piece of land, or
another person with his permission, may make
explorations thereon for subterranean waters, except
as provided by the Mining Law.
Explorations for subterranean waters on lands of
public dominion may be made only with the
permission of the administrative authorities. (417a)
Classes of Subterranean Waters
(a) flowing water — more or less permanent; definite
course.
(b) percolating water — no definite course or channel,
like rain water seeping thru the soil. (67 C.J. 833)
Article 513. Waters artificially brought forth in
accordance with the Special Law of Waters of August
3, 1866, belong to the person who brought them up.
(418)
Permitting Another to Construct a Well on Your Land—
If you allow another to incur expenses by permitting
him to bore a well on your own land, you cannot later
on refuse permission for him to use the well without
reimbursing him therefor, otherwise fraud will be
encouraged. As a matter of fact, you can be considered
in estoppel. (See Mirasol v. Mun. of Tabaco, 43 Phil. 610)
Article 514. When the owner of waters artificially
brought to the surface abandons them to their natural
course, they shall become of public dominion. (419)
SECTION 5
General Provisions
Article 515. The owner of a piece of land on which
there are defensive works to check waters, or on
which, due to a change of their course, it may be
necessary to reconstruct such works, shall be obliged,
at his election, either to make the necessary repairs or
construction himself, or to permit them to be done,
without damage to him, by the owners of the lands
which suffer or are clearly exposed to suffer injury.
(420)
Article 516. The provisions of the preceding article
are applicable to the case in which it may be
necessary to clear a piece of land of matter, whose Suppose There Are Minerals on Private Lands?
accumulation or fall may obstruct the course of the These minerals are still owned by the State. (See
waters, to the damage or peril of third persons. (421) Sections 2 and 4, RA 7942).

Article 517. All the owners who participate in the CHAPTER 3

benefits arising from the works referred to in the two Trade-marks and Trade-names
preceding articles, shall be obliged to contribute to the
expenses of construction in proportion to their
Article 520. A trade-mark or trade-name duly
respective interests. Those who by their fault may
registered in the proper government bureau or office
have caused the damage shall be liable for the
is owned by and pertains to the person, corporation,
expenses. (422)
or firm registering the same, subject to the provisions
of special laws. (n)
Article 518. All matters not expressly determined by
the provisions of this Chapter shall be governed by
the Special Law of Waters of August 3, 1866, and by
Distinctions Re Trademark, Trade Name and Service
the Irrigation Law. (425a) Mark—

Resume of Laws Governing Waters Trademark — name or symbol of goods made or

(a) Civil Code of the Philippines. manufactured.
(b) Spanish Law of Waters of Aug. 3, 1866. (This was
extended to the Philippines on Sep. 24, 1871). Trade name — name or symbol of store, business, or
[NOTE: The Spanish Law of Waters of June 13, 1879 was occupation
never in force in the Philippines. (See Montano v. Insular
Gov’t., 12 Phil. 572).]. Service mark — name or symbol of service rendered.
(c) The Irrigation Act (Act 2152), as amended.
(d) The Water Power Act. (Act 4062). Necessity of Registration at the Patent Office—
(e) Sec. 2, Art. XII, 1987 Constitution.
A certificate of registration of a trademark is prima facie
[See Water Code of the Philippines PD 1067] evidence of the validity of such registration, but the
same may be rebutted. (People v. Lim Hoa, L-10612,
CHAPTER 2 May 30, 1958)
Minerals
Note: Incidentally, the contention that once the
Article 519. Mining claims and rights and other publication of the application is approved by the
matters concerning minerals and mineral lands are Director of Patents, it becomes the latter’s ministerial
governed by special laws. (427a) duty to issue the corresponding certificate of
registration is UNTENABLE. It is the decision of the
Definition of ‘Minerals’— Director given after the public is given the opportunity
Inorganic elements or substances found in nature to contest the application that finally terminates the
whether in a gaseous, liquid, or solidified stage. proceedings, and in which the registration is finally
Excluded are the soil, ordinary earth, sand, stone and approved or disapproved.
gravel. (See Sec. 7, Com. Act No. 137)
Duration of the Marks—
Definition of ‘Mineral Lands’—
Those where there are minerals sufficient in quality and
A certificate of registration shall remain in force for ten
quantity to justify expenses for their extraction. (See
(10) years: Provided, That the registrant shall file a
Sec. 8, Com. Act No. 137).
declaration of actual use and evidence to that effect, or
shall show valid reasons based on the existence of
Laws Governing Minerals—
obstacles to such use, as prescribed by the Regulations,
1) The Phil. Constitution Art. XIII, Sec. 1 of the 1935
within one (1) year from the fifth anniversary of the
Constitution (now Art. XII, Sec. 2, 1987 Constitution),
date of the registration of the mark. Otherwise, the
which provides that the mineral resources of the
mark shall be removed from the Register by the
country shall not be alienated; that all minerals belong
Intellectual Property Office. (Sec. 145, RA 8293)
to the state, whether they are contained in public or
private land; and that no license, concession or lease for
Marks or Names That Cannot Be Registered—
the exploitation, and development shall be granted for a
period exceeding 25 years, renewable for another 25
(a) Immoral, deceptive, scandalous, or disparaging
years.
matter. (Sec. 123[a], RA 8293)
2) Commonwealth Act 137. (The Mining Law — enacted
Nov. 7, 1936).
3) Act 2719. (The Coal Act). (b) Those which falsely suggest a connection with
4) Republic Act 387. (The Petroleum Act of 1949). persons (living or dead), institutions, beliefs, or national
5) Act 2932. (Oil and Gas). symbols.
6) The Mining Act of 1995 or RA 7942.
(c) The national flag, coat of arms, or insignia of the
Philippines, its political subdivisions or any foreign
nation (or simulation thereof). (Sec. 123[b], id.).
(d) The name, portrait, or signature of a living individual
(unless he consents in writing); or of a deceased
Philippine President (while the widow is alive, unless
she gives her written consent). (Sec. 123[c], id.)
(d) when the name has become a generic or common
descriptive name. (Sec. 151, RA 8293).
[NOTE: In cancellation proceedings, the Director of
Patents is NOT bound by the findings of facts by the
court in a criminal case for unfair competition for the
issues are different. (Go San v. Director of Patents, et al.,
L-10563, Feb. 23, 1961).]

(e) That which resembles a trademark or trade name as
would cause deceptive confusion. Indeed, registration
must be refused in cases where there is a likelihood of
confusion, mistake, or deception, even though the
goods should fall into different categories. (Chua Che v.
Phil. Patent Office, L-18337, Jan. 30, 1965).
Unfair Competition—
There is unfair competition when there is infringement
by passing off one’s goods as those made by another
contrary to good faith.
Imitation or similarity such that average customers may
be deceived, should be considered the test of
infringement.
Doctrine of ‘Equivalents’—
It provides that an 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. (Smith Kline Beckman
Corp. v. CA, 409 SCRA 33 [2003])
Article 521. The goodwill of a business is property,
and may be transferred together with the right to use
the name under which the business is conducted. (n)
‘Goodwill’ Defined—
It is the advantage acquired by any product or fi rm
because of general encouragement and patronage of
the public. Its elements are: place, name, and
reputation. (See 24 Am. Jur. 803, 807)
While goodwill is considered property (Art. 521); it is
not an independent property which is separable from
the fi rm or business which owns it.
Article 522. Trade-marks and trade-names are
governed by special laws. (n)
Applicability of Special Laws Refer to RA 8293, otherwise
known as the Intellectual Property Code of the
Philippines, approved June 6, 1997, and effective Jan. 1,
1998. (See Amigo Manufacturing, Inc. v. Cluett Peabody
Co., Inc., GR 139300, Mar. 14, 2001).

Remedies in Case of Infringement—

(a) Injunction. (Sec. 23, RA 8293).

(b) Seizure and destruction of all necessary

paraphernalia. (Sec. 157, RA 8293).

(c) Damages, which consist of:

1) reasonable profit the complainant would have made

(had there been no infringement); or

2) actual profit which infringer made (or if this cannot

be easily determined, a reasonable percentage of gross
sales of infringer).

Grounds for the Cancellation of the Registration—

(a) there has been abandonment;

(b) or the registration had been made fraudulently or

illegally;

(c) when the registered name is used to misrepresent

the source of the goods;