Legal basis and policy intent
- The State’s policy is to enhance enforcement of intellectual property rights in the country and to protect and secure exclusive rights of scientists, inventors, artists, and other gifted citizens in their intellectual property and creations.
- The Intellectual Property Code of the Philippines mandates the Intellectual Property Office (IPO) to administratively adjudicate contested proceedings affecting intellectual property rights under Section 5.1(f), Republic Act No. 8293.
- The Bureau of Legal Affairs (BLA) hears and decides opposition to mark registration, cancellation of trademarks, and other matters under Section 10, Republic Act No. 8293, including subject to Section 64 cancellation of patents, utility models and industrial designs, and petitions for compulsory licensing of patents, and original jurisdiction in administrative complaints for violations of intellectual property laws.
- The rules recognize that alternative dispute resolution, particularly mediation, facilitates and complements adjudication of IP disputes.
Scope and coverage of cases
- These mediation rules cover inter partes (IPC) cases in the BLA.
- These mediation rules cover Intellectual Property Rights Violations (IPV) cases in the BLA.
- Cases filed before the effectivity of these rules proceed under the applicable then-existing IPC/IPV rules and regulations, without prejudice to the parties submitting to mediation proceedings.
- For cases filed before effectivity that are past the pre-trial stage or governed by summary procedures but have not yet been submitted for decision, mediation may still be invoked by written manifestation, except when a party has been declared in default.
Submission to mediation
- The Notice of Pre-Trial issued to the parties must be accompanied by an Invitation to mediate signed by the BLA Director.
- The parties must manifest their agreement to submit the case to mediation within 15 days from receipt of the Notice.
- For cases filed before effectivity that are past pre-trial stage, or governed by summary procedures not yet submitted for decision, the parties may manifest in writing that they submit the case for mediation, except where a party has been declared in default.
Mediation conference procedure and participation
- Once the parties agree to mediate, the Hearing Officer must immediately issue an order setting the Mediation Conference date.
- The Mediation Conference date must be set not later than 10 days from the date of the order.
- The order must require the parties to submit to the Director in writing the name of the mediator of their choice at least 3 days before the Mediation Conference.
- The venue for the Mediation Conference is the IPO.
- The BLA Director may authorize another venue upon written request of either party if necessary to expedite mediation and if the other party agrees.
- Costs incurred in an alternative venue, including transportation, accommodation, and per diem, are borne equally by both parties.
- The parties themselves must be present during the Mediation Conference.
- A representative may appear if fully authorized in writing through a Special Power of Attorney to enter into a Compromise Agreement on behalf of a party.
- For juridical persons, the representative must present a Board Resolution or a Secretary’s Certificate designating the representative and authorizing full authority to enter into a Compromise Agreement.
- The mediator may hold sub-conferences and/or meetings after the Mediation Conference if necessary.
Mediator appointment and conduct
- The mediator may be mutually chosen by the parties from the list of accredited IPO mediators posted in the IPO website.
- If the names identified by the parties are not the same person, mediator selection is done through a raffle.
- Mediators from the BLA are disqualified from cases pending at the Bureau.
- The mediator is not bound by strict adherence to technicalities.
- The mediator must give every opportunity for the parties to present their respective positions with the objective of reaching an agreement or settlement.
Compromise agreement, approval, and effect
- The Compromise Agreement must be submitted to the mediator not later than 60 days from the date of the Mediation Conference.
- Within 2 days from receipt of the Compromise Agreement, the mediator must issue an order submitting the Compromise Agreement to the BLA Director for approval.
- An approved Compromise Agreement has the effect of a decision or judgment and must be enforced accordingly.
- The BLA Director shall disapprove the Compromise Agreement or require amendments if its terms are contrary to law and regulations, morals, public policy and/or interest.
- If amendments are required, the amended Compromise Agreement must be submitted within 5 days from receipt of the order, with a copy furnished the mediator.
- Mediation proceedings terminate upon either approval of the Compromise Agreement or declaration of failure of mediation.
- The entire mediation proceedings must not exceed 90 days from the date of the Mediation Conference.
Failure of mediation and consequences
- Mediation is deemed to have failed if the parties do not reach an agreement within 60 days from the date of the Mediation Conference.
- Mediation is also deemed to have failed if the Compromise Agreement is disapproved, or if there is non-submission or disapproval of an amended Compromise Agreement as required by the BLA Director.
- The mediator must issue a written order declaring failure of mediation and must furnish copies to the parties and the BLA Director.
- Upon receipt of the failure order, the BLA Director must immediately issue an order for the continuance of the proceedings in the BLA.
- A motion for reconsideration and an appeal from the declaration of failure of mediation are not allowed.
- An appeal or motion for reconsideration from the order for the continuance of proceedings in the BLA is not allowed.
Complementary rules, separability, and filing obligations
- These mediation rules apply as complementary rules governing IPC and IPV cases in the BLA.
- If any provision of the rules, or its application to any circumstance, is held invalid, the remainder of the rules remains effective.
- The Ms. Ma. Teresa Caliwan, BLA Acting Records Officer must file three (3) certified copies with the University of the Philippines Law Center and one (1) certified copy each with the Office of the President, the Senate of the Philippines, the House of Representatives, the Supreme Court of the Philippines, and the National Library.