LAWS, CONTRACTS AND ETHICS:

Definition of Terms:

Authorship - state of being an author or source; someone who contributes to the final product
Bonds financial security notes issued by businesses or corporations as a means of borrowing
long-term fund
Code of Ethics guide for actions of a professional in relation to his emloyer, fellow professional
and the public he serves
Collateral borrowers pledge of specific property to a lender, to secure repayment of debt
Company legal entity made up of an association of persons, for carrying on a commercial or
industrial enterprise.
Conflict of Interest situation in which a person/organization is involved in multiple interests
(usually financial), one of which could possible corrupt the motivation or decision of the said
individual/organization
Conglomerate combination of two or more corporations engaged in entirely different businesses
that full under one corporate group (parent company with multiple subsidiaries)
Consulting - process of providing expert/professional advice in a particular field
Contract meeting of minds between two persons, whereby one binds himself/herself with respect
to the other to give someting or to render service
Consent agreement of the will of one contracting party with that of another upon the object and
terms of the contract.
Cooperative - an autonomous association fo people voluntarily united to meet their common
economic, social and culturual needs and aspirations through a jointly owned and democratically
controlled business
Copyright legal right that grants the creator of an original work exclusive rights for its use and
distribution
Corporation a company or group of people authorized by law to act as a single entity; group of
people organized for the purpose of business and industrial transactions which is incorporated
under Philippine Law.
Drugs include all medicines and preparations recognized by the National Formulary for internal or
external use
False Marking any activity using a false designation of origin, or false description, with the intent
to deceive the public
Foods - all articles which are used for food, drink, confectionery or condiment
Holding Company - a company that owns stocks of other companies.
Infringement act of making, using, selling by any person a patented invention without
authorization
Inventorship state of being an inventor who contributed during the inventive step of product development;
someone who has contributed by the use of imagination

Investment Priorities Plan - plan prepared by the Board of Investment which contains analysis,
synthesis and projections of data from public and private sectors, regarding activities in various
sectors.
Joint-stock Company a company where different stocks can be bought and owned by
shareholders; ownership of company is proportional to the amount of shares owned.
Lease contract containing terms for renting property

Measured Capacity estimated additional production volume which the Board of Investments
(BOI) determines to be desirable in each pioneer area of investment in order to supply the needs of
the economy at reasonable prices, taking into account the export potential of the area
Mortgage a contract wherein the debtors property is given as a security for his/her debt
Obligation a juridical necessity to give/do, or not to do/give
Offer - first step in contract formation; contains items and conditions may give rise to a contract
Partnership a firm owned and controlled by two or more persons who are bound to a partnership
agreement
Patent a time-limited exclusive right given to an inventor over his invention, which serves to
protect the individual from competition from parties who had no part in developing the said
invention.
Pioneer Enterprise a registered business engaged in the manufacture, processing or production
of goods, products or raw materials that have not been produced in the Philippines on a commercial
scale.
Preferred Area of Investment economic activities that the Board shall have declared as such:
includes agriculture/fisheries, creative industries, ship building, mass housing, energy, research and
development, etc.
Registered Enterprise corporation organized and existing under Philippine Law, of which at least
60% of the capital stock outstanding and entitled to vote, is owned and held by Filipino nationals,
and at least 60% members of the board of directors are Filipino nationals, and is duly registered
with the BOI.
Sole proprietorship simplest type of business organization wherein firm is controlled by a single
person
Specification act of making specifics through supplying particular details; statement of
requirements; tool for obtaining equipment, goods, or services in accordance with an engineers
requirements
Trademark any word/symbol/name/emblem/sign/device adopted and used by a manufacturer or
merchant to identify his goods and distinguish them from those manufactured or sold by others;
analogous to service mark
Tradename includes names, devices or words used by manufacturers, industrialists and
merchants to identify their business; official legal name of a business entity
Technology Transfer Agreement contracts/agreements involving the transfer of systematic
knowledge for the manufacture of a product, application of a process, or rendering of a service
including management contracts; and the tranfer, assignment or licensing of all forms of intellectual
property rights, including licensing of computer software, except computer software developed for
mass market.
Techonological Assistance Contracts - contracts for the transfer, by license of otherwise, of
patents, processes, formulas or other technological rights of foreign origin; and for foreign asistance
concerning technical and factory management, design, planning, construction, and other related
matters.
Usufruct - a real right that unites two property interests of usus and fructus; Usus is the right to
use or enjoy a thing possessed, and Fructus is the right to derive profit from a thing possessed

REPUBLIC ACT 9297: Chemical Engineering Law of 2004

I. Title, Statement of Policy, Definition of Terms and Scope of Practice

1. Definition of Terms:
Certificate of Recognition issued by the Board in recognition for advance studies and
researches and accomplishments in chemical engineering
Chemical Engineering rendering or offering of professional chemical engineering service
for a fee, salary, reward or compensation
CPE - Continuing Professional Education
Industrial Plant any plant involving any unit processes or unit operations, including pollution
abatement/control processes/operations
Unit Process - chemical change involved in the manufacture of industrial consumer products,
or treatment of industrial wastes
Unit operation physical operation by which a desired step in an industrial process is
conducted or controlled; includes: solid/fluid storage, heat transfer, evaporation, distillation,
absorption, drying, humidification, extraction, dispersion, mixing, separation, filtration,
screening and leaching.
2. Professional Chemical Engineering Subjects: ChE Thermodynamics, ChE calculations,
Momentum, Heat and Mass Transfer, Industrial Processes, Industrial Waste Management and
Control, Process Equipment and Plant Design, Biochemical Engineering
3. Scope of Practice: Consultation, Investigation, Estimation, Planning, Preparation of Feasibility
Studies, Design, Specification, Supervision of Installation, Operation, Research and Development
4. Main Proponents: Aquilino Pimentel (Senate), Raul del Mar (Congress); approved by President
Gloria Macapagal-Arroyo on May 13, 2004 and took effect on May 29, 2004.
5. Other Important Personalities:
a. Teofilo S. Pilando: PRC Chairman
b. Engr. Felix Espino: RN: 00001 in the Roster of Chemical Engineers
c. Jose Espinosa: First PIChE President

II. Creation of the Professional Regulatory Board for Chemical Engineers

-

The Board of Chemical Engineering is under the administrative control and supervision of
the Professional Regulation Comission (PRC)
Consists of a Chairman and two members to be appointed by the Philippine President from
among those recommended by the PIChE.
Qualifications: (a) natural born Filipino citizen; (b) holder of a bachelors degree in ChE; (c)
A registered chemical engineer in active practice for at least 10 years; (4) a member of
PIChE; (d) no interests in any university, college, school, etc.
Duties of the Board: (a) supervise and regulate the practice of the profession; (b) evaluate
qualifications of applicants; (c) prescribe subjects in the licensure examination and construct
test questions; (d) prosecute violators of the chemical engineering law
Term of Office: three years, with reappointment

III. Licensure Examination and Registration

-

Scope of Examination: Physical & Chemical Principles (Day 1), Chemical Engineering
Principles (Day 2), General Engineering, Ethics and Contracts (Day 3)
Rating: A general average of no less than 70% is required (Day 1: 30%, Day 2: 40%, Day 3:
30%); A rating of no less than 50% in any examination subject

IV.Practice of Chemical Engineering

1. Only individuals properly licensed and registered may practice chemical engineering. Firms,
partnerships, corporations or associations may not be licensed or registereed as such.
2. Registration:
- Certificate of Registration (lifetime)
- Professional Identification Card (every 3 years)
3. Foreign ChE Practitioners: Special permits can be issued by the board to foreign practitioners
4. Prohibitions: (a) Practice chemical engineering without a valid certificate of registration or when
such has been suspended/revoked; (b) Attempt to use certificate or seal of another person as his
own, i.e. impersonating any registered chemical engineer; (c) furnish the Board any falsified
information or document to secure a certificate of registration

V. General Provision
-

Penal Clause: Violators shall be sentenced to a fine of 10,000-1,000,000 pesos or

imprisonment period of 6 months to 5 years at the courts discretion
Enforcement Asistance Clause: The PRC will assist the Board in the implementation of
the law; lawyers of the Commission shall serve as prosecutors against illegal practitioners
and violators.

CODE OF ETHICS FOR THE PRACTICE OF CHEMICAL ENGINEERING

A. Fundamental Guiding Principles
-

Shall be guided by highest standards of honor and integrity; act with fairness impartiality and
equity
Shall consider the environment, safety, health, and welfare of the public as paramount
importance
Shall commit to perform professional services only in areas of ones competence
Shall uphold the dignity of the profession and protect it from mispresentation and dishonor
Shall avoid association with any enterprise/individual of questionable reputation
Shall not knowingly engage in work against the law or ethical standards
Shall endeavor at all times to give credit where it is due
Shall practice confidentiality whenever required and respect pricavy of others
Shall acknowledge our own mistake when proven wrong and refrain from distorting facts to
justify mistake
Shall cooperate with other engineers and professionals
Shall treat students with fairness and respect, and follow practices, rules, and regulations
pertaining to student-teacher relations as specificed by schools policy

B. Relation with Peers

-

Shall exchange general information and experience, encourage ethical knowledge

dissemination, contribute to the work of APOs and chemical engineering schools, and
cooperate to enhance effectiveness of the chemical engineering profession
Shall conduct a review/audit of the work of another chemical engineer for the sam
client/employer only after the said client/employer shall have informed him/her
Shall accept to review journal articles, scientific publications and similar matters only with the
written request of the journal editor or publisher
Shall not engage in the significant use of ideas or written work of another chemical engineer
without giving due credit
Shall note attempt to attract another chemical engineer from another employer by false
pretences

C. Relation with other Professionals

-

Shall promote own interest with dignity and integrity as professionals

Shall respect mandates of other professions
Shall avoid making degrading statements regarding other professions

D. Relation with Employer/Client

-

Shall act in professional matters for employer/client as faithful agents, and avoid conflict of
interest
Shall make known to employer/client other professional obligations, financial interest and
others which might restrict/interfere with meeting their expectations
Shall not accept outside employment detrimental to ones regular work
Shall not accept compensation, from another employer, in the same line of busineses or has
conflict of interest with current employer without the consent of all parties
Shall not take advantage of government position, nor engage in activities that would be
unfair to concerned parties
Shall bring up to employer any dangerous defect in equipment/structure or dangerous
operating conditions
Shall advise employer of the risk before undertaking any work if the work requested poses
certain doubts regarding ability to obtain successful results
Shall present consequences that will arise if professional judgement is overruled
Shall not hesitate to advise employer to engage services of other experts on problems on
which ones knowledge/experience is inadequate
Shall be conservative in all estimates
Shall charge fees as such rates that are reasonable enough to warrant adequate and quality
service
Shall not use unfair/improper means in obtaining professional work
Shall not use resources of employer for outside private practice without employers consent
Shall enter into an agreement regarding ownership of any data, plans, patents, designs and
other intellectual properties:
(a) Information used only obtainable from employer/client: Intellectual property of
employer/client
(b) Ones knowledge or information which is public property: Intellectual property of
chemical engineer (employer can use information when the engineer is retained)
(c) Results accomplished outside the field for which the chemical engineer is employed:
Intellectual property of chemical engineer
(d) Special data obtained from employer is to be held confidential; publication of such data
is highly improper

E. Relation with the Public

-

Shall always make oneself ready and willing to render professional service, even without
compensation, in cases of accidents
Shall express an engineering opnion based on an adequate knowledge on the facts of the
issue.
Shall express professional opnion only when adequately informed of the related facts
shall not participate in decision making involving services solicited by him/her in
private/public engineering practice due to conflict of interest (for government officials)
shall not accept a contract from a government body in which an officer of ones organization
is directly involved with
shall not issue statements, criticism or arguments on matters of public concern which are
inspired by private interest
shall not indulge in self-laudatory advertisement, nor make misleading statements in media
or any public forum.
Shall strive to serve the public interest

F. Continuing Education

Shall strive to continue professional development by participating in continuing education

provided by APOs
Shall endeavor to acquire knowledge of the latest development in the area of chemical
engineering relevant to the services rendered to clients/employers

REPUBLIC ACT 8293: Intellectual Property Code

1. Intellectual Properties include the following
a. Patent
- Title granted to protect an invention from competition
- First-to-File Rule: if two or more persons have made the same invention separately, the
patent will belong to the applicant with the earliest filing date or priority date
b. Industrial Design
- Any composition of lines or colors or any 3D form which can serve as a pattern for an
industrial product or handicraft
c. Trademarks and Service Marks
d. Copyrights
e. Geographical Indicators
- Indicators that identify a good as orginating in the territory of a country or a region
f. Layout Design
g. Undisclosed Information
- Natural and legal persons may prevent information lawfully within their control from being
disclosed to, acquired by, or used by others without their consent in a mannercontrary to
honest commercial practices so long as such information has commercial value
h. Plant Varieties
2. Intellectual Property Office (IPO)
- Under the Office of the President
- Involved in the implementation of the Philippine Intellectual Property Code
3. Terms of Protection
- Patent (17-20 years), Industrial Design (5 years), Trademark (10 years), Copyrights (50
years thereafter)

Related Laws and Resolutions:

RA 9297
RA 318
RA 165
RA 8293
RA 166
RA 2067
RA 1655
RA 5186
RA 8981
PD 223
RA 9275
RA 8749
RA 9003
RA 6969
RA 7924
Commonwealth Act

Chemical Engineering Law of 2004

Old Chemical Engineering Law
Patent Law of the Philippines
Intellectual Property Code of the Philippines
Trademarks and Tradenames
Science Act of 1958
Food and Drugs Act
Investment Incentives Act
PRC Modernization Act of 2000
Creation of the Professional Regulation Commission
Clean Water Act
Clean Air Act
Ecological Solid Waste Management Act
Toxic Substances and Hazardous and Nuclear Wastes
Act
Creation of the MMDA
An act to punish dumping waste into rivers

PD 1181
PD 1160
PD 1396
PD 825
PD 600
PD 1586
PD 1067
PD 281
PD 602
PD 856
PD 984
PD 1152
Montreal Protocol
Kyoto Protocol
Stockholm Convention
Basel Convention
Hague Agreement
Madrid Protocol

Decree Providing for the prevention, control and

abatement of air pollution from motor vehicles
Empowers Barangay Officials to arrest violators of
environmental laws
Human Settlement Ministry
Penalty for improper garbage disposal
Control of Marine Pollution
Environmental Impact Assessment Law
Water Code of the Philippines
Creation of the Pasig River Development Council
Establishment oil pollution operations center
Sanitation Code of the Philippines
Pollution Control Law
Philippine Environmental Code
Ozone Depletion International Treaty
Global Warming International Treaty
International Treaty on Persistent Organic Pollutants
International Treaty on Transboundary Movement of
Hazardous Waste
International Registration of Industrial Designs
International Registration of Marks