Patent Infringement | Patents | INTELLECTUAL PROPERTY

Patent Infringement in Philippine Mercantile and Taxation Law

Introduction to Patent Infringement

Patent infringement in the Philippines is primarily governed by the Intellectual Property Code of the Philippines (Republic Act No. 8293), which outlines the rights of patent holders, the nature of patent infringement, and the remedies available. Patent infringement occurs when a third party, without permission or authorization from the patent holder, makes, uses, sells, offers for sale, or imports a patented invention within the Philippines. This infringement disrupts the patent holder’s exclusive rights to their invention, potentially leading to legal recourse.

Key Elements of Patent Infringement

1. Patent Holder's Exclusive Rights: The patent holder has the right to exclude others from:

   • Making the patented product,
   • Using the patented process,
   • Selling or offering for sale the patented invention,
   • Importing the patented product or any product made using the patented process.

2. Acts Constituting Infringement: Infringement can occur through direct or indirect means:

   • Direct Infringement: Occurs when an entity manufactures, uses, or sells the patented invention without permission.
   • Contributory Infringement: When a party knowingly provides components or materials used to infringe on the patent, especially if the components have no substantial non-infringing use.

3. Territorial Limitation: Patent rights are territorial, meaning the protection is enforceable within the Philippines. Importing infringing goods into the Philippines constitutes infringement, as it infringes on the patent holder's rights within the country.

4. Types of Infringing Products or Processes:

   • Literal Infringement: Direct and identical copying or usage of the patented claim.
   • Doctrine of Equivalents: Extends to cases where a product or process performs substantially the same function in substantially the same way to achieve substantially the same result as the patented invention.

Defenses Against Patent Infringement

Certain defenses are available for those accused of patent infringement:

1. Invalidity of Patent: An accused infringer may challenge the validity of the patent by arguing that it fails to meet patentability requirements (novelty, inventive step, industrial applicability).
2. Experimental Use Exception: Allows the use of patented inventions for experimental purposes related to scientific research without infringing on the patent.
3. Prior Use: If a party can prove they were using or exploiting the invention prior to the filing date, they may avoid infringement claims.
4. Non-Infringing Use: If the use falls outside the patented claims or does not utilize the patented process, it may not constitute infringement.

Remedies for Patent Infringement

1. Injunctive Relief: The court may issue an injunction to prevent the infringing party from continuing their infringing activities. This can include temporary restraining orders or permanent injunctions.
2. Damages: Patent holders may be entitled to monetary damages, which can include:
   • Actual Damages: Based on losses suffered by the patent holder due to infringement.
   • Reasonable Royalty: When actual damages are difficult to quantify, the court may award a reasonable royalty.
   • Punitive Damages: In cases of willful infringement, the court may award damages to deter future infringing behavior.
3. Seizure and Destruction of Infringing Goods: Courts can order the seizure and destruction of infringing products and materials used in the production of infringing goods.
4. Attorney's Fees and Costs: The infringer may be required to cover the patent holder’s legal fees, particularly if the infringement is proven to be willful.

Jurisdiction and Enforcement in the Philippines

1. Intellectual Property Office (IPO): The Intellectual Property Office of the Philippines (IPO) provides administrative recourse for patent holders, including mediation services and issuance of cease-and-desist orders.
2. Regional Trial Courts (RTC): In cases of patent infringement, the RTC holds jurisdiction, and decisions can be appealed to higher courts.
3. Border Enforcement: The IPO collaborates with the Bureau of Customs to prevent the importation of infringing products into the country.

Procedural Requirements for Patent Infringement Cases

To initiate a patent infringement case, the complainant must:

1. Prove Ownership: Present a valid and enforceable patent registered with the IPO.
2. Provide Evidence of Infringement: Detailed proof of the alleged infringing acts, including comparative analysis of the infringing product/process against the patent claims.
3. Notification: In some cases, particularly with contributory infringement, it may be necessary to notify the infringer of the patent and demand they cease their infringing activities.

Penalties and Fines

The penalties for patent infringement can include civil liabilities (damages and injunctions) as well as criminal penalties, especially in cases of willful or repeated infringement. Criminal sanctions may include imprisonment and fines based on the value of the infringement, although civil remedies are generally pursued.

Key Precedents and Interpretations

The Philippines aligns its patent laws with international treaties like the TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights), affecting how local courts interpret patent infringement cases. Recent jurisprudence in Philippine courts has highlighted several key aspects:

1. Interpretation of Claims: Courts prioritize the "claims" section of a patent when determining infringement, applying either literal interpretation or the doctrine of equivalents based on context.
2. Good Faith Defense: Some decisions have considered the infringer's good faith, though it does not necessarily absolve liability; it may impact the severity of damages.
3. Exhaustion Doctrine: Once a patented product is sold, the patent holder’s rights to control its subsequent resale or use are "exhausted."

Conclusion

In the Philippines, patent infringement law seeks to balance the rights of patent holders with the need for public access to technological advancements. Patent holders are provided comprehensive protection against unauthorized use, manufacturing, or selling of patented inventions, with avenues to enforce their rights administratively and judicially. However, defenses like experimental use and non-infringing uses limit these rights, ensuring innovation and access to technology are not unduly hindered. The remedies for patent infringement, including injunctive relief, damages, and destruction of infringing goods, are designed to provide robust protection while deterring infringement.