Mercantile and Taxation Laws > Intellectual Property > Patents > Rights and Limitations of Patent Owners

I. Introduction to Patent Ownership Rights in the Philippines

In the Philippines, patent rights are governed by the Intellectual Property Code (IPC), codified in Republic Act No. 8293. The Philippine Intellectual Property Office (IPO) grants patents to inventors for novel, inventive, and industrially applicable inventions. A patent owner is granted exclusive rights over the patented invention, enabling them to prevent others from using, manufacturing, or selling the patented invention without permission. However, these rights come with certain limitations and are balanced by public interest considerations.

II. Rights of the Patent Owner

Exclusive Rights to Use and Exploit (Sec. 71, IPC)
- The patent owner holds the exclusive right to:
  - Prevent unauthorized persons from producing, using, offering for sale, selling, or importing the patented product.
  - For process patents, they can prevent unauthorized use of the process, as well as the importation, sale, or distribution of products obtained directly by the patented process.
- This exclusive right enables the patent owner to commercialize the invention and maintain a competitive advantage.
Right to License and Transfer (Sec. 103-105, IPC)
- The patent owner has the right to grant licenses to third parties, permitting them to use the patent in exchange for royalties or other payments.
- The patent owner may assign or transfer ownership of the patent to another entity, effectively transferring exclusive rights over the invention.
- Licensing can be voluntary, but it can also be subject to government-imposed compulsory licenses under certain circumstances (discussed under Limitations).
Right to Remedies for Infringement (Sec. 76-77, IPC)
- Patent owners may seek legal remedies for infringement, including injunctions, damages, or accounts of profits.
- The patent owner may also request the seizure or destruction of infringing goods, providing additional protection against unauthorized use.
Right to Importation
- Patent rights also cover imported products that embody the patented invention, enabling the patent owner to control not just local manufacturing and sales but also the entry of infringing imports into the country.
Right to Secrecy and Protection of Information
- During the application process, the applicant can request confidentiality regarding sensitive information related to the patent. This helps maintain the confidentiality of technical details until the patent is published.

III. Limitations on the Rights of the Patent Owner

Doctrine of Exhaustion
- Once a patented product is sold by or with the consent of the patent owner, the owner’s control over that specific product is “exhausted.” Subsequent resale or use of the product is not subject to the patent owner’s exclusive rights, limiting the owner's power over previously sold products.
Compulsory Licensing (Sec. 93-100, IPC)
- The Philippine government may issue a compulsory license if:
  - The invention is not available to the public at a reasonable cost.
  - The invention is needed for public health, national security, or other critical issues.
  - Anti-competitive practices are suspected.
- This measure ensures public access to essential technologies, especially in cases like pharmaceuticals or public utilities.
Parallel Importation
- Under specific conditions, a patented product legally sold in another jurisdiction may be imported into the Philippines without the patent owner’s consent. This concept aligns with the doctrine of international exhaustion, promoting access to affordable products and preventing monopolistic pricing.
Government Use (Sec. 74, IPC)
- The Philippine government has the right to use patented inventions without the patent owner’s consent for non-commercial, governmental purposes. This is especially applicable during emergencies or in the interest of public welfare.
- Compensation must be paid to the patent owner, but the government’s use bypasses typical patent rights for a limited scope and duration.
Research and Experimental Use Exception (Sec. 72.4, IPC)
- This exception permits the use of a patented invention for research and experimental purposes without infringing on the patent.
- Non-commercial use by researchers, educators, or scientists is permissible, provided it is intended for knowledge advancement and not for direct profit.
Bolar Provision (Sec. 72.3, IPC)
- The Bolar Provision permits third parties to use a patented invention, without infringement, for regulatory approval purposes. This is particularly relevant in the pharmaceutical industry, where companies may develop generic versions of a drug during the patent term to be ready for market release immediately after patent expiration.
Use of the Invention in Foreign Vessels or Aircrafts Temporarily in the Philippines (Sec. 72.1, IPC)
- Foreign vessels, aircraft, or vehicles entering Philippine jurisdiction temporarily may use patented inventions without permission if these inventions are utilized as part of their operations, provided such use is non-commercial and incidental.
Regulatory Approval Exception (Sec. 72.5, IPC)
- Inventions requiring regulatory approval, like pharmaceuticals or biotechnologies, may be used for the purpose of securing government clearance without constituting patent infringement.
Limitations Under Competition Law
- Philippine law restricts the use of patents to prevent anti-competitive practices. Abusive licensing, monopolistic practices, or price manipulation by the patent owner may subject them to legal action or mandatory licensing provisions.
- Competition law ensures that patent rights do not unduly stifle market competition or harm consumer welfare.

IV. Duration and Expiration of Patent Rights

Patent Term (Sec. 54, IPC)
- The standard duration of a patent in the Philippines is 20 years from the filing date. Upon expiration, the invention enters the public domain, and anyone can use, manufacture, or sell it without infringing on former patent rights.
Renewal and Maintenance Fees (Sec. 55, IPC)
- Patent owners are required to pay periodic maintenance fees to retain the enforceability of their patent. Failure to pay these fees may result in the lapse of the patent, placing the invention in the public domain before the 20-year term.
Revocation and Nullification of Patents (Sec. 61-66, IPC)
- A patent may be challenged on grounds of invalidity, such as lack of novelty, inventiveness, or industrial applicability. Courts or the IPO may revoke patents that do not meet statutory requirements, nullifying the patent owner’s rights.

V. Conclusion

Patent rights in the Philippines provide inventors with significant control and exclusivity over their inventions, promoting innovation and economic growth. However, these rights are not absolute. Limitations such as compulsory licensing, government use, parallel importation, and other statutory exceptions ensure a balance between protecting inventors and safeguarding public welfare. The Philippine IP framework thus aims to encourage innovation while providing mechanisms to prevent patent abuse and ensure public access to essential technologies.