Powers, Functions, and Duties of the Commission
- Technical assistance: patentability examination and patent application preparation
- Financial aid: funding to develop, perfect, and produce inventions pending or secured patents
- Legal assistance: representation in filing patents locally and abroad; protection against patent infringement
- Recommendation for government loans using letters patent as collateral to manufacture inventions
- Market assistance: help inventors find domestic and international markets
- Incentives: Annual cash awards and medals known as "President Awards for Inventions" in various scientific and commercial fields
- Research facilities: Establish and maintain a public research laboratory with mandatory royalty sharing to maintain facilities
- Promotion of creativity: annual "Creative Research Contest" to encourage submission of useful ideas or gadgets
- Dissemination: publish inventions and scientific information
- Networking: hold regular meetings for idea exchange among inventors
- International promotion: assist inventors in joining international competitions
- Youth involvement: organize creative societies in academic institutions
Transfer of Functions
- Transfer of invention promotion and development functions from the National Science Development Board to the Commission
Composition and Appointment
- The Commission headed by a Commissioner and an Assistant Commissioner, appointed by the President with consent
- Qualifications: Filipino citizens, at least 25 years old, holders of at least one patent issued by the Philippine Patent Office
- Terms: Lifetime tenure during good behavior, removable only for cause
- Salaries fixed for the Commissioner (₱12,000) and Assistant Commissioner (₱10,000)
Rulemaking and Contractual Obligations
- Rulemaking authority subject to National Science Development Board approval
- Any assistance (technical, financial, legal, or use of research facilities) given with contract obligation for the inventor to pay the Commission 10% royalties from patents resulting from the Commission's services
- Royalties fund the Commission's activities
- Ownership of inventions and patents remains with the inventor subject to royalty provisions
Research Laboratory Site and Facilities
- Commissioner may select up to 24 hectares of public land for research laboratory and housing
- Land survey, delimitation, and transfer to the Commission to follow within three months
Organizational Structure
- Divisions include Patent Examining, Research, Legal, Evaluation and Financing, Administrative, and others as approved
- Division heads must be Filipino inventors with patents (except Legal Division head)
- Compensation for division heads fixed at ₱8,400 annually
- Appointment of technical and administrative staff made by the National Science Development Board chairman upon Commissioner's recommendation
- Temporary appointments allowed for unfilled inventor-qualified positions with additional compensation
Tax Incentives for Donations
- Donations and grants to the Commission are tax-exempt and deductible from income tax
- Fraudulent claims subject to penalties including fines and imprisonment
- Corporate officers held liable for violations
Tax and License Exemptions for Local Inventions
- Five-year exemption from taxes, licenses, and permits for local inventions manufactured as a home industry with capitalization not exceeding ₱50,000
Appropriations and Funding
- Initial appropriation of ₱500,000 from the National Treasury upon establishment
- Annual appropriations required, not less than ₱500,000
- Minimum 50% of funds dedicated to financial aid for developing and producing patents
- Minimum 10% of balance allocated for awards and promotion of inventiveness
Legal Provisions
- Severability clause: invalidity of any part does not affect the remainder
- Repeal of inconsistent laws, rules, or orders
- Effectivity: Act takes effect upon approval