Question & AnswerQ&A (Republic Act No. 3850)
Republic Act No. 3850 shall be known and cited as the "Philippine Inventors Incentives Act."
The primary purpose of the Philippine Inventors Commission is to give technical, financial, and legal assistance to inventors in the Philippines.
The Philippine Inventors Commission operates under the supervision of the National Science Development Board.
Key functions include giving technical assistance, granting financial aid, rendering legal assistance, recommending long-term loans, helping find markets for inventions, awarding the President Awards for Inventions, establishing public research laboratories, encouraging inventiveness, publishing information, organizing monthly inventor sessions, assisting in international competitions, and organizing creative societies in schools.
The inventor must sign a contract agreeing to give the Commission at least 10% of all royalties arising from patents developed, perfected, or protected through the Commission's service or financing.
They are appointed by the President of the Philippines with the consent of the Commission on Appointments. Each must be a Filipino citizen, at least 25 years old, and an inventor with at least one invention or utility model patent issued by the Philippine Patent Office.
Any person who fraudulently avails of these benefits shall be punished by a fine not exceeding one year imprisonment or both, at the court's discretion. In the case of a corporation, the president or general manager shall be criminally liable, without prejudice to other responsible officers.
Local inventions are exempt from all kinds of taxes, licenses, and permits during the first five years from the date of the grant of the letters of patent, provided that capitalization does not exceed fifty thousand pesos and the manufacture is carried out by the inventor as a home industry.
The Commissioner, with approval from the National Science Development Board, shall promulgate necessary rules and any assistance rendered must comply with the royalty agreement, ensuring the Commission's sustainability and the inventor's ownership of the patent.
The Act establishes annual sizeable cash awards and medals known as the "President Awards for Inventions" in various fields. These awards encourage inventors to patent their inventions and promote creativity and science consciousness among Filipinos.