Infringement: Penalties and Remedies

Penalties

1.) Infringement of Copyright

a.) First offense: 1-3 years imprisonment and a fine of Php50,000 to 150,000

b.) Second offense: 3 years and 1 day to 6 years and a fine of Php150,000 to 500,000

c.) Third and subsequent offenses: 6 years and 1 day to 9 years and a fine of Php500,000 to 1,500,000

d.) Subsidiary imprisonment in all cases if the accused is insolvent

This will also apply to any person who possesses an article which he knows, or ought to know, is an infringing copy of the original work if the possession of the article in question is for any of the following:

a.) Sale, letting for hire, or by way of trade offering/exposing it for sale or hire

b.) Distributing the article for purpose of trade or any other purpose to the extent that it will prejudice the rights of the copyright holder

c.) Trade exhibit of the article in public

In determining the length of the prison term and fine, the court must consider the value of the infringing materials and the damage the copyright owner suffered because of the infringement.

2.) Infringement of Trademarks/Trade Names

Imprisonment of 2 to 5 years and a fine of Php50,000 to 200,000. This also applies to unfair competition and false descriptions of origin or representation. The lawful owner can also pursue civil and administrative actions.

3.) Infringement of Patents

Criminal liability for patent infringement will appear only if there is a repetition of infringement. Imprisonment is 6 months to 3 years and a fine of Php100,000 to 300,000. The period of prescription is 3 years.

In every case, the lawful owner of the trademark/trade name, copyright or patent can pursue a civil action to recover damages the moment the infringer undertakes any of the acts of infringement to cause confusion, mistake or deception.