Introduction of Key Definitions (Section 3)
- "Invention": Any new and useful machine, product, substance, process, or improvement meeting novelty, utility, and operativeness standards.
- "Innovation" (Utility Model): New models of implements or industrial products not qualifying as inventions but useful due to form, configuration, construction, or composition.
- "Industrial Design": New, original, ornamental designs for manufactured articles.
Financial Aid to Inventors and Designers (Section 4(b))
- Grants financial aid to inventors, utility model makers, and industrial designers.
- Aid is for development, perfection, and production of inventions or models, including those with pending patents.
- Support extends to production up to pilot plant scale to demonstrate operability and industrial application.
- Provided under certain terms and conditions.
Renumbering of Sections
- Original Section 3 becomes Section 4.
- Sections 4, 5, and 6 are renumbered as Sections 5, 6, and 7 respectively.
- Sections 7, 8, and 9 are renumbered as Sections 9, 10, and 11.
- Sections 10 is renumbered as Section 12.
- Sections 11 to 15 are renumbered as Sections 13 to 17.
Creation of the Invention Guarantee Fund (Section 8)
- A fund of six million pesos is established.
- Initial appropriation of 1 million pesos from the National Science Development Board’s Grants-In-Aid Fund.
- Additional 5 million pesos authorized from unappropriated national funds.
- Fund administered by the Development Bank of the Philippines (DBP).
- Used to guarantee unsecured portions of industrial loans for manufacturing patented Filipino inventions, utility models, or industrial designs.
Formation of a Committee to Identify Technological Priorities
- The Philippine Inventors Commission will form a committee within three months.
- Members come from: Department of Industry, NEDA, National Science Development Board, Department of Trade, DBP.
- Committee to consult private industries and government agencies.
- Its findings guide inventors’ research, enhancing economic viability and commercial application.
- Certification by the Philippine Inventors Commission required to access guarantee facility.
Conditions for Guarantee Facility Access
- Subject inventions, utility models, or designs must align with industrial and national priorities identified by the committee.
- Additional requirements as prescribed by the Development Bank of the Philippines.
Tax Incentives for Manufacture of Local Inventions (Section 12)
- Exemption from taxes, license fees, and permit fees (excluding customs duties on imports) for the first five years from first sale.
- Applies only if manufacture is by the inventor(s) themselves as small or medium-scale enterprise (capitalization up to 4 million pesos).
- If manufactured by a partnership or corporation, majority interest must be owned by the inventor(s).
- Manufacturers must maintain separate books of account for such manufacture and sale.
- Must be Filipino citizens or enterprises with at least 60% Filipino ownership.
Immediate Effectivity
- The amendments take effect immediately upon issuance.
Additional Provisions
- The decree contains formal enactment language.
- Signed by the President and his Executive Assistant indicating official promulgation.