Discusses the legal requirements/options for joint venture/licensing in this market.
Last Published: 7/18/2019

Foreign businesses are allowed to operate in the Philippines through joint ventures with local enterprises. The Philippine Government (GPH) does not require the submission of licensing/technology transfer arrangements for approval and registration by the Intellectual Property Office. Voluntary submission is strongly encouraged to ensure compliance with Sections 87 and 88 of the Intellectual Property Code, since non-conformance with Section 87 on Prohibited Clauses and Section 88 on Mandatory Provisions automatically renders the arrangement unenforceable. The Intellectual Property Office may allow exemption from conformance with Section 87 and 88 after an evaluation under the provisions of Section 91 on Exceptional Cases.

The Intellectual Property Code of the Philippines defines technology transfer arrangements as contracts or agreements involving the transfer of systematic knowledge for the manufacture of a product; the application of a process or rendering of a service including management contracts; and the transfer, assignment, or licensing of all forms of intellectual property rights, including licensing of computer software (except computer software developed for the mass market).  Distributorship agreements will be included in the coverage if this includes the licensing of trademarks.
 

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