2010 Mercantile Law, Q6

a. What contractual stipulations are required in all technology transfer agreements? (2%)
b. Enumerate three (3) stipulations that are prohibited in technology transfer agreements. (3%)
c. Can an article of commerce serve as a trademark and at the same time enjoy patent and copyright protection? Explain and give an example. (2%)

Quick check

Which mandatory clause must be included in all technology transfer agreements under Section 88 of R.A. 8293?

Which clause is classified as a prohibited restrictive business practice in technology transfer agreements under Section 87 of R.A. 8293?

Can an article of commerce simultaneously be protected by a trademark, copyright, and industrial design patent under Philippine IP law?

Under Section 88 of R.A. 8293, which tax liability rule applies to technology transfer agreements executed in the Philippines?

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Which primary statute governs technology transfer agreements and intellectual property rights in the Philippines?

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1. Mandatory TTA Provisions
Under Section 88 of the Intellectual Property Code (Republic Act Number 8293), technology transfer agreements must contain mandatory provisions. These include making Philippine law the governing law with venue of litigation in the Philippines, granting the licensee continued access to improvements, adopting accepted arbitration rules, and requiring the licensor to pay all Philippine taxes on payments under the agreement.

2. Prohibited TTA Clauses
Under Section 87 of the Intellectual Property Code (Republic Act Number 8293), technology transfer agreements are prohibited from containing restrictive business clauses. Prohibited stipulations include those that fix sale prices, limit production volumes, restrict the use of competing technologies, or obligate the licensee to permanently transfer improvements back to the licensor.

3. Overlapping IP Rights
Under Republic Act Number 8293, an article of commerce can simultaneously enjoy multiple intellectual property protections. A uniquely shaped commercial container can serve as a registered trademark identifying source origin, enjoy copyright protection for its original artistic design, and secure an industrial design patent for its novel aesthetic shape.

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