Philippines: IPOPHL posts proposed guidelines on compulsory licences

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

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 SHARED ros bottom lb

More from across our site

Latham & Watkins bolstered its IP litigation bench in California with the addition of Kieran Kieckhefer, as partner demand for trial-ready expertise shows no sign of slowing
With the launch of a new patent eligibility AI tool, Sterne Kessler is leading a growing movement of law firms taking AI development into their own hands
UPC cases are (very) gradually becoming more distributed across other local divisions outside Germany, which can only be good news for the pan-European forum
Clarification concerning jurisdictional reach and latest stats released by the court were also among the top talking points in recent weeks
Although unanimous decision by the top court clarifies several aspects of the honest concurrent use defence, practitioners say ambiguities remain
Tristan Sherliker says he hopes to solve an access to justice issue by making the automated court bundle tool free to use
The team, comprising two partners and one senior consultant, plans to offer “highly differentiated” services to clients
HGF’s new ownership model frees it from the hiring constraints of traditional partnerships, its CEO told Managing IP
New timeline for 2026 aims to provide clearer guidance to firms and practitioners on the full jurisdictional market view
Attorneys contemplate whether clients using AI for legal guidance is beneficial to attorney-client relationships or more of a nuisance
Gift this article