Philippines: IPOPHL posts proposed guidelines on compulsory licences

Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Philippines: IPOPHL posts proposed guidelines on compulsory licences

Sponsored by

hechanova-400px.png
compulsory-licence-min-final.jpg

The TRIPS Agreement, to which the Philippines is a signatory, enables governments of member countries with no capacity to manufacture medicines to import/export cheaper pharmaceutical products via a compulsory licence. These are medicines for which they would otherwise have paid a higher price because of existing patents.

On January 8 2020, the Intellectual Property Office of the Philippines (IPOPHL) posted the proposed guidelines on the use of special compulsory licences (SCL) and compulsory licences (CL) by way of a Joint Administrative Order (JAO) with the Department of Health (DOH) for comment by the public on or before January 21 2020. This is in line with the government's target of sustainable development goals (SDG). Under the Intellectual Property Code of the Philippines (IP Code), a CL is a licence issued by the director general of the IPOPHL to exploit a patented invention without the permission of the patent holder. SCL refers to the permission granted to import and/or export patented drugs and medicines.

The JAO allows the DOH to import generic versions of the patented products under any of the following circumstances: (i) national emergency or other circumstances of extreme urgency; (ii) where the public interest so requires, in particular, nutrition or health as determined by the DOH; (iii) where a judicial or administrative body has determined that the manner of exploitation of the patent is anti-competitive; (iv) in case of public non-commercial use of the patent by the patentee without satisfactory reason; (v) if the patented invention is not being worked in the Philippines on a commercial scale, although capable of being worked, without satisfactory reason; or (vi) when the demand for patented drugs and medicines is not being met to an adequate extent and on reasonable terms.

The JAO provides for payment of reasonable remuneration to the patent holder, but sets the ceiling for the royalty payment at 5% of the price of generics. The royalty rate shall be in accordance with the guidelines of the United Nations Development Program (UNDP).

The patent holder shall be given the opportunity to comment on the petition for the issuance of a SCL/CL, and the proceedings shall be before the IPOPHL. The parties shall be encouraged to avail of any mode of alternative dispute resolution. Should the patentee fail to file its comment within the required period, the director general of the IPOPHL shall issue the SCL/CL which shall be immediately executory and only the Supreme Court can issue a temporary restraining order (TRO) or preliminary injunction or other provisional remedies.

To avoid the commercialisation of the approved generic product, it shall be distinguished by a different special packaging and/or special colouring/shaping, and the issued Certificate of Product Registration (CPR) shall include the statement "FOR DOH PROGRAM ONLY." The process of securing the SCL/CL from filing of the petition should take only 90 days.


Hechanova & Co., Inc.

Salustiana D. Ty Tower

104 Paseo de Roxas Avenue

Makati City 1229, Philippines

Tel: (63) 2 812-6561

Fax: (63) 2 888-4290

editharh@hechanova.com.ph 

www.hechanova.com.p
h

more from across site and ros bottom lb

More from across our site

The team, led by partners Dominic Farnsworth and Leigh Smith, also includes two trademark attorneys
Kathy Van der Herten and Don Swartwout of CAS discuss the benefits and challenges of using emerging technologies to help with IP searches
Demand for specialists is increasing as IP plays an ever-bigger role in deals and financial transactions
A UK government consultation on AI and copyright, a patent blow for Lenovo and a trademark row over cider were among the big talking points this week
Our most popular stories of the year included a rundown of the 50 most influential people in IP, our in-house ones to watch, and UPC news
Awards
It is time to submit nominations for the sixth annual Life Sciences Awards EMEA
Keejeong Kim, who returned to Yulchon after a four-year gap, said he was intrigued by the opportunity to work on neighbouring areas of law to IP
The IP consulting firm hopes to expand its services and outreach with the support of investors VSS Capital Partners and Century Equity Partners
This update includes a ruling from the Court of Appeal, a judgment of the Paris Local Division, news of upcoming hearings, and predictions for 2025
US counsel review the key copyright and trademark trends of 2024, including generative AI disputes and SCOTUS cases
Gift this article