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RULES AND REGULATIONS ON
ADMINISTRATIVE COMPLAINTS FOR VIOLATION OF LAWS
INVOLVING INTELLECTUAL PROPERTY RIGHTS
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MODIFIED RULES AND REGULATIONS ON
ADMINISTRATIVE COMPLAINTS FOR VIOLATION OF LAWS
INVOLVING INTELLECTUAL PROPERTY RIGHTS
[March 28, 2001]
 
RULE 5 
PRELIMINARY INJUNCTION


Section 1.  Preliminary injunction defined; who may grant.  (a)  A preliminary injunction is an order granted at any stage of an action or proceeding prior to the judgment or final order, requiring a party to an administrative case or any third person to refrain from a particular act or acts.  It may also require the performance of a particular act or acts, in which case it shall be known as a preliminary mandatory injunction.   

(b) A preliminary injunction may be granted by the Hearing Officer who is handling or hearing the case but no such power can be exercised as against concurrent court or other Office which have already acquired jurisdiction over the subject matter.   


Section 2.  Grounds for issuance of preliminary injunction.  A preliminary injunction may be granted when it is established:   

(a) That the applicant is entitled to the relief demanded, and the whole or part of such relief consists in restraining the commission or continuance of the act or acts complained of, or in requiring the performance of an act or acts, either for a limited period or perpetually;   

(b) That the commission, continuance or non-performance of the act or acts complained of during the litigation would probably work injustice to the applicant; or   

(c) That a party or any person is doing, threatening, or is attempting to do, or is procuring or suffering to be done, some act or acts probably in violation of the rights of the applicant respecting the subject of the action or proceeding and tending to render the judgment ineffectual.   


Section 3.  Verified application and bond for preliminary injunction or temporary restraining order.  A preliminary or temporary restraining order may be granted only when:   

(a) The application in the action or proceeding is verified and shows facts entitling the applicant to the relief demanded;   

(b) Unless exempted by the Bureau, the applicant files with the Bureau a bond executed to the party or person enjoined in an amount to be fixed by the Hearing Officer, to the effect that the applicant will pay to such party or person all damages which he may sustain by reason of the injunction or temporary restraining order if the Hearing Officer should finally decide that the applicant was not entitled thereto.  Upon approval of the requisite bond, a writ of preliminary injunction shall be issued;   

(c) When an application for a writ of preliminary injunction or a temporary restraining order is included in a complaint or any initiatory pleading, the case shall be raffled only after notice to and in the presence of the adverse party or the person to be enjoined.  In any event, such notice shall be preceded, or contemporaneously accompanied by service of summons, together with a copy of the complaint or initiatory pleading and the applicant’s affidavit and bond upon the adverse party in the Philippines. However, where the summons could not be served personally or by substituted service despite diligent efforts, or the adverse party is a resident of the Philippines temporarily absent therefrom or is a nonresident thereof, the requirement of prior or contemporaneous service of summons shall not apply.   

(d) The application for a temporary restraining order shall thereafter be acted upon only after all the parties are heard in a summary hearing which shall be conducted within twenty-four (24) hours after the sheriff’s return of service and/or the records are received by the Hearing Officer to whom the case was raffled and to whom the records shall be transmitted immediately.   


Section 4.  Preliminary injunction not granted without notice;  exception.  No preliminary injunction shall be granted without hearing and prior notice to the party or person sought to be enjoined.  Should the petition be granted after compliance with the requirement of due process, the Hearing Officer shall issue an  Order enjoining the party against whom it is issued from further committing acts detrimental or injurious to the applicant effective for such period of time as may be determined by the Hearing Officer with the concurrence of the Director without prejudice to the filing of counterbonds as provided in subsequent sections.   


Section 5.  Grounds for objection to, or for motion of dissolution of, injunction or restraining order.  The application for injunction or restraining order may be denied, upon showing of its insufficiency.  The injunction or restraining order may also be denied, or if granted, may be dissolved, on other grounds upon affidavits of the party or person enjoined, which may be opposed by the applicant also by affidavits.  It may further be denied, or, if granted, may be dissolved, if it appears after hearing that although the applicant is entitled to the injunction or restraining order, the issuance or continuance thereof, as the case may be, would cause irreparable damage to the party or person enjoined while the applicant can be fully compensated for such damages as he may suffer, and the former files a bond in an amount fixed by the Hearing Officer conditioned that he will pay all damages which the applicant may suffer by the denial or the dissolution of the injunction or restraining order.  If it appears that the extent of the preliminary injunction or restraining order granted is too great, it may be modified.   


Section 6.  Service of copies of bonds; effect of disapproval of same.  The party filing a bond in accordance with the provisions of this Rule shall forthwith serve a copy of such bond on the other party, who may except to the sufficiency of the bond, or of the surety or sureties thereon.  If the applicant’s bond is found to be insufficient in amount, or if the surety or sureties thereon fail to justify, and a bond sufficient in amount with sufficient sureties approved after justification is not filed forthwith, the injunction shall be dissolved.  If the bond of the adverse party is found to be insufficient in amount, or the surety or sureties thereon fail to justify a bond sufficient in amount with sufficient sureties approved after justification is not filed forthwith, the injunction shall be granted or restored, as the case may be.   


Section 7.  When final injunction granted.  If after the trial of the action it appears that the applicant is entitled to have the act or acts complained of permanently enjoined, the Hearing Officer shall grant a final injunction perpetually restraining the party or person enjoined from the commission or continuance of the act or acts or confirming the preliminary mandatory injunction.   

 
    

 

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