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PRESIDENTIAL DECREE NO. 1423
PRESIDENTIAL DECREE NO. 1423 -
AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND EIGHT HUNDRED FIFTY,
OTHERWISE KNOWN AS THE "PHILIPPINE INVENTORS INCENTIVE ACT"
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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;chanroblesvirtualawlibrary
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:cralaw:red
Section 1. A new section to be designated: Section 3
is hereby inserted after Section 2 of the same Act to read as
follows: chanroblesvirtualawlibrary
"Sec. 3. Definition of Terms. —
"(a) "Invention" shall mean any new and useful
machine manufactured product or substance, process or any improvement
thereof that satisfies the requirement of novelty, utility and
operativeness.
"(b) "Innovation" (Utility Model) shall mean any new
model of implement or tools of any industrial product or part of the
same, which does not possess the quality or invention, but which is of
practical utility by reason of its form, configuration, construction or
composition.
"(c) "Industrial Design" shall mean any new original
and ornamental design for an article of manufacture.
Section 2. Section 3 of the Act is hereby renumbered
as Section 4 and paragraph (b) thereof is hereby amended to read as
follows: chanroblesvirtualawlibrary
"Sec. 4. (b) To grant financiald 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 3. Sections 4, 5 and 6 of the same Act are
hereby renumbered as Sections 5, 6 and 7 respectively, thereof.
Section 4. A new section to be designated as Section
8 is hereby inserted after Section 7 as renumbered to read as follows:cralaw:red
"Sec. 8. There is hereby created an 'Invention
Guarantee Fund' of six million pesos of which the initial amount of one
million is hereby appropriated from the Grants-In-Aid Fund of the
National Science Development Board, and the additional amount of five
million pesos is hereby authorized to be appropriated out of any
unappropriated funds in the National Treasury. The fund shall be
deposited with the Development Bank of the Philippines which would be
charged the responsibility of administering and controlling 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.
"The Philippine Investors Commissioner shall, within three months from
the effectivity of this decree, constitute a committee composed of
representatives from the Department of Industry, National Economic and
Development Authority, National Science Development Board, Department
of Trade, and Development Bank of the Philippines, that shall consult
private industry associations and appropriate government agencies in
identifying technological research priorities in order to guide
inventor's research work and enhance the economic viability and
commercial applicability of their inventions. The finding of the
Committee shall serve as a basis for the issuance of certifications
required from the Philippine Inventors Commission under the provisions
of the succeeding paragraph.
"In addition to the requirements which shall be prescribed by the
Development Bank of the Philippines, 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 that are determined by the Committee to be
responsive to priorities and requirements of private industries and the
national government.
Section 5. Sections 7, 8 and 9 of the same Act are
hereby renumbered as Sections 9, 10, 11 respectively, thereof. chanroblesvirtualawlibrary
Section 6. Section 10 of the same Act is hereby
renumbered as Section 12 thereof and amended to read as follows:cralaw:red
"Sec. 12. To promote and encourage the manufacture of
local inventions, utility models or industrial designs, their
manufacture 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 the rules and
regulations be promulgated by the Department of Finance: Provided, That
their manufacture is carried out by the investor's himself/themselves
as a small/medium scale industry with capitalization not exceeding four
million pesos: Provided, further, That in case of a partnership or a
corporation, the majority interest belongs to the patentee's
himself/themselves: Provided still further, That the manufacturer shall
keep separate books of accounts of the manufacture and sale of said
inventions: and Provided finally, That the manufacturer is a Filipino
citizen or an enterprise at least sixty percent of the capital of which
is owned by such citizens.
Section 7. Sections 11, 12, 13, 14 and 15 of the same
Act are hereby renumbered as Sections 13, 14, 15, 16 and 17,
respectively, thereof.
Section 8. This Decree shall take effect immediately.
Done in the City of Manila,
this 9th day of June in the year of Our Lord, nineteen hundred and
seventy-eight.
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