Question & AnswerQ&A (Republic Act No. 7459)
Republic Act No. 7459 is titled the 'Inventors and Invention Incentives Act of the Philippines.'
The national policy prioritizes invention and its utilization in the country's productive systems and national life, providing incentives and protecting the exclusive rights of inventors, especially when the invention benefits the people and contributes to national development.
Invention refers to any patented machine, product, process including implements or tools, and other related gadgets of invention, utility model, and industrial design patents.
An inventor refers to the patentee, heir(s), or assignee(s) of an invention letters patent, utility model letters, or industrial design letters patent.
Presidential awards consist of cash rewards for patented inventions, utility models, industrial designs, and creative research ranging from P5,000 to P100,000 depending on the category and prize rank.
Inventors certified by the Filipino Inventors Society and confirmed by the Screening Committee are exempt from payment of license fees, permit fees, other business taxes in developing their inventions, and fees for registering their inventions.
Income derived from these technologies is exempted from all kinds of taxes for the first ten years from the date of first sale, including exemptions from license, permit fees, customs duties, and import charges.
The Fund assists potential or actual inventors in initial experiments, prototype development, and other inventor-related development activities using at least 12% of the Technology Application and Promotion Institute's annual operations fund and other sources.
The Institute assists technologies, inventors, and researchers in accessing laboratories and facilities of various RDI's and accredits and recognizes inventor organizations.
The Invention Guarantee Fund, deposited with the Development Bank of the Philippines, finances and guarantees loan assistance for patented Filipino inventions certified by the Filipino Inventors Society and Screening Committee to support commercialization and production.
Loans up to P200,000 may be granted without real estate collateral; loans above that require equity or acceptable collateral. Loans may be granted based on profitability, viability, dollar-earning capacity, and employment generation, and may be guaranteed by the IGF.
Government agencies must assist in preparing project feasibility studies, evaluations, and production plans to facilitate loans or financial assistance for inventions.
The Technology Application and Promotion Institute, in consultation with the Filipino Inventors Society and subject to the Secretary of the Department's approval, promulgates rules and regulations to carry out the Act.
The separability clause provides that the parts not affected by the declaration will continue to be in full force and effect.
RA 7459 took effect upon its publication in at least two national newspapers of general circulation.