Are clauses requiring a licensee to buy from a specific source allowed?
Clauses that force a licensee to acquire capital goods or raw materials from a specific source are prohibited. Such provisions are deemed to have an adverse effect on competition and trade. They are considered prima facie restricted unless specific exemptions apply. This prohibition is found in Section 87 Intellectual Property Code of the Philippines. “87.1. Those which impose upon the licensee the obligation to acquire from a specific source capital goods, intermediate products, raw materials, and other technologies…” January 3, 2026About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
