What happens if a person unknowingly acquires an article with an unlawfully reproduced layout-design?
A person who unknowingly acquires an integrated circuit containing an unlawfully reproduced design is not initially liable for distribution. Section 119 Intellectual Property Code of the Philippines provides this protection for innocent acquirers without reasonable grounds for knowledge of the infringement. However, once they receive sufficient notice of the illegality, they may only dispose of the stock already on hand or ordered. In such cases, they must pay the right holder a reasonable royalty, typically at least 5% of net sales. “119.5. … (4) In respect of an integrated circuit where the person… did not know and had no reasonable ground to know… that it incorporated an unlawfully reproduced layout design… after… notice… that person… shall be liable to pay… at least 5% of net sales…” 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/.
