ROYALTIES: RIGHTS OF THE HEIRS

UNDER EXISTING PHILIPPINE LAWS

Arellano University School of Law

Dexter L. Ledesma
Legal Researcher
5YP1 Set c

Presented to:
Atty. Ricardo Ribo
Legal Research Professor

I. Introduction
Under the 1987 Constitution, the State recognizes that an effective intellectual and industrial property
system is vital to the development of domestic and creative activity, facilitates transfer of technology,
attracts foreign investments, and ensures market access for our products. It shall protect and secure the
exclusive rights of scientists, inventors, artist and other gifted citizens to their intellectual property and
creations, particularly when beneficial to the people. It is also the policy of the State to streamline
administrative procedures of registering patents, trademark and copyright, to liberalize the registration
of the transfer of technology, and to enhance the enforcement of intellectual property rights in the
Philippines.
When a person creates a book, song, play, or painting, the work is considered intellectual property.
Similarly, when an inventor receives a patent on his invention, the inventor has intellectual property
rights in the thing created. Typically, authors, songwriters, composers, playwrights, and inventors do
not have the financial ability to fully exploit the commercial use of their creations. They must turn to
businesses that specialize in the marketing of intellectual property. When a business obtains the right to
market the creation, the creator usually receives compensation in the form of a royalty.
Philippine copyright law is enshrined in the Intellectual Property Code of the Philippines, officially
known as Republic Act No. 8293. The law is partly based in United States copyright law and the
principles of the Berne Convention for the Protection of Literary and Artistic Works. Unlike many
other copyright laws, Philippine copyright laws also protect patents, trademarks, and other forms of
intellectual property. The law is enforced through a body established by the law: the Intellectual
Property Office, or IPO, and its various branches. Copyright implementation is done with the
coordination of the IPO and the Copyright Division of the National Library of the Philippines.

II. Definition of Terms

Royalty is a payment made to an author or inventor for each copy of a work or article sold under a
copyright ot patent. (Black's Law Dictionary)
Intellectual Property Rights consists of copyright and related rights, trademark and service marks,
geographic indications, industrial designs, patents, layout designs and protection of undisclosed
information.

III. Issues
a.) Can royalties enjoyed by a book author be inherited by his compulsory heirs?
b.) What is the effect of an agreement between the author and the publishing firm, whereby the latter
shall share in the former's rights under existing copyright laws.

IV. Relevant Laws

Republic Act No. 8293 An Act Prescribing the Intellectual Property Code and Establishing the
Intellectual Property Office, Providing for its Powers and Functions, and for other Purposes.

IV. Discussion
Royalties enjoyed by a book author can be inherited by his compulsory heirs. Section 102 of Chapter
XI, Republic Act No. 8293 provides that: Patents or applications for patents and invention to which
they relate, shall be protected in the same way as the rights of other property under the Civil Code.
Inventions and any right, title or interest in and to patents and inventions covered thereby, may be
assigned or transmitted by inheritance or bequest or may be the subject of a license contract. Under the
Philippine law, compulsory heirs is entitled to a transmission of rights.
As to effect of an agreement between the author and the publishing firm, Intellectual Property Code of
the Philippines (RA No. 8293), Section 184 (e) provides that the following should not constitute

infringement of copyright: Public display of the original or a copy of the work not made by means of a
film, slide, television, image or otherwise on screen or by means of any other device or process:
Provided, That either the work has been published, or, that original or the copy displayed has been sold,
given away or otherwise transferred to another person by the author or his successor in title. Publishing
firm shall share in the author's rights under existing copyright laws. Prior to any publication, the
publishing firm shall ensure that no infringement of copyright has been committed. The author or its
successor-in-interest shall be given its corresponding royalties. The copyrights of the author shall be
protected.