1

INTRODUCTION
1.

GENERAL CONCEPTS.
1.01. Commercial law has been defined as that branch of
private law which regulates the juridical relations
arising from commercial acts and according to which
the questions or controversies which may arise
therefrom are resolved (Vivantes Institutiones, p. 3;
Espejo de Hinojasa, p. 61 cited in Tolentino, Commentaries
and Jurisprudence on the Commercial Laws of the
Philippines, 6th Ed., Vol. 1, p. 1).
a)

Traditionally, Commercial laws in the Philippines include laws governing the following: (1)
commercial documents such as negotiable instruments, warehouse receipts, letters of credit
and the like, (2) business organizations like corporations, single proprietorship and joint accounts, (3) commercial contracts like insurance
or mortgage, (4) banking regulations, (5) insolvency, (6) securities, (7) intellectual properties,
(8) public utilities and other activities or transactions involving commerce.

1.02. Commerce is the mass of acts of human life, which

tend to the satisfaction of necessities by means of
exchange or of the rendition of services, effected with
a purpose of gain and falling within the domain of
mercantile laws (ibid.).
2.

APPLICABLE LAWS.
2.01. Code of Commerce This law was extended to the
Philippines by Royal Decree of August 6, 1888. It
1

REVIEWER ON COMMERCIAL LAW

took effect on December 1, 1888. However, with the

passage of the New Civil Code, only the following are
still governed by the Code of Commerce:
a)

Merchants, Commercial Registries, Book of Merchants, General Provisions on Commercial Contracts (Arts. 1-63);

b)

Joint Accounts (Arts. 239-243);

c)

Transfer of Non-Negotiable Credits (Arts. 347348);

d)

Overland Transportation (Arts. 349-379);

e)

Letters of Credit (Arts. 567-572); and

f)

Maritime Commerce (Arts. 573-869).

2.02. New Civil Code The New Civil Code repealed the
provisions of the Code of Commerce on: (1) Sales, (2)
Partnership, (3) Agency, (4) Loan, (5) Guaranty, and
(6) Deposit. Hence, the New Civil Code provisions
now govern such contracts.
The New Civil Code is likewise the primary
governing law on Common Carriers.
2.03. Special Laws Commercial laws include but are not
limited to the following statutes:
a)

Corporation Code of the Philippines (Batas Pambansa Blg. 68);

b)

Negotiable Instruments Laws (Act No. 2031);

c)

Insurance Code of the Philippines (Presidential

Decree No. 1460 as amended);

d)

Financial Rehabilitation and Insolvency Act of

2010 (Republic Act No. 10142);

e)

Securities Regulation Code (Republic Act No.

8799);

f)

General Banking Law (Republic Act No. 8791);

g)

New Central Bank Act (Republic Act No. 7653);

INTRODUCTION

h)

Warehouse Receipts Law (Act No. 2137);

i)

Trust Receipts Law (Presidential Decree No. 115)

j)

Business Name Law (Act No. 3883);

k)

Chattel Mortgage Law (Act No. 1508);

l)

Public Service Law (Commonwealth Act No.

146);

m) Intellectual Property Code (Republic Act No.

8293).
3.

COMMERCIAL CONTRACTS.
3.01. Concept and Formalities. Contracts that are governed
by the Code of Commerce are called commercial
contracts.
a)

In the absence of any requirement under the

Code of Commerce or Special Law that certain
formalities are required, commercial contracts
are valid in whatever form they appear (Arts. 51
and 52, CC). Example: Joint Accounts.

b)

Contracts that are expressly required to be in

writing under the Code of Commerce are: (1)
Letters of Credit (Art. 267, CC), (2) Loans on Bottomry and Respondentia (Art. 720, CC), and (3)
Charter Parties (Art. 652, CC).

3.02. Perfection.
The general rule under the New Civil Code is
that contracts are perfected upon the meeting of minds
with respect to the object and the consideration.
a)

In perfection by correspondence, the applicable rule

is the Cognition Theory under which the contract is
perfected the moment the offeror learns about the
acceptance of his offer by the offeree (Art. 1409, NCC).
Thus, Cognition Theory should apply to all consensual
contracts that are governed by Commercial laws.

To my wife Felicitas, my children Macaria, Jocelyn, Jose, Jr.,

and Renato and their families
Jose R. Sundiang

To my wife Bea and my children Leona Isabelle, Lean Carlo

and Lauren Margaret
Timoteo B. Aquino

iii

iv

PREFACE TO THE FIFTH EDITION

The last revision of this work was made when the Fourth
Edition was reprinted in March 2010. While less than a year
is normally too short to release a new edition, the passage
of the Financial Rehabilitation and Insolvency Act of 2010
necessitated the revision of the present work. As a consequence
of the same law, discussions on rehabilitation of corporations
which were previously included in Part III are now included
in the discussions on rehabilitation, insolvency and liquidation
of all business organizations in Part V on Credit Transactions.
The authors likewise took the opportunity to include new and
important cases on other subjects as well as new rules like those
pertaining to business names.
This edition adheres to the basic aim of the previous
editions to present the core subjects of Commercial Law in
a simplied but comprehensive manner. The structure of the
book was purposely designed to help students review for the
Bar Examinations.
The authors extend their heartfelt gratitude to all those
who used this book in the past ten years. The authors hope that
this new edition will continue to be of help to students and Bar
Reviewees.
THE AUTHORS

vi

PREFACE
This book aims to provide law students with materials
for careful review of the fundamental principles, doctrines
and rules on the cluster of laws that encompasses Commercial
Law. Like similar books of its type, this book does not contain
extended discussion of the statutory provisions or jurisprudence.
It includes rules that are presented in outline form, concise
statements of doctrinal pronouncements of the Supreme Court,
summary of signicant cases, sample bar examination problems
and problems based on cases.
However, since the book embodies what should be a
students core knowledge of Commercial Law, it may be used
not only by students who are preparing for the bar examinations
but also as study guide of students who are taking Commercial
Law subjects in law school, especially Commercial Law Review.
The present edition incorporates new laws and jurisprudence. For instance, this work includes salient features of the Human Security Act of 2007, Civil Aviation Act of 2008 and the Universally Accessible Cheaper and Quality Medicine Act of 2008.
New topics like the laws on real estate mortgage, salvage, and
ship mortgage are now included. The authors re-arranged the
different parts of the book without deviating from the general
format of presentation of the materials. All laws and discussion
involving credit transactions are now part of Part V of this volume.
The authors, in the preparation of the present edition,
are still guided by their belief that there is no such thing as
exceedingly early preparation for the bar examinations. Indeed,
such preparation should properly start when the law student
embarks on his study of law. Every student should heed the
vii

caution given by Professor Henry Ballentine who declared that

students should not wait for the writing on the wall Thou art
to be weighed in the balance by bar examiners, Woe unto thee if thou
art found wanting.
THE AUTHORS

viii

CONTENTS

INTRODUCTION
1.

2.

3.

General Concepts.......................................................................
1.01. Commercial Law Dened. ..............................................
1.02. Commerce Dened. .........................................................
Applicable Laws ........................................................................
2.01. Code of Commerce ........................................................
2.02. New Civil Code .............................................................
2.03. Special Laws ...................................................................
Commercial Contract ................................................................
3.01. Concept and Formalities ..............................................
3.02. Perfection of Contracts..................................................

1
1
1
1
1
2
2
3
3
3

PART I
NEGOTIABLE INSTRUMENTS LAW
1.
2.

3.
4.

5.
6.

Denition of Negotiable Instrument ......................................

Requisites of Negotiability .....................................................
2.01. Negotiation Dened ......................................................
2.02. How Negotiability is Determined ..............................
Governing Law ..........................................................................
Functions of Negotiable Instruments .....................................
4.01. Enumeration of Functions ............................................
4.02. What is Legal Tender ....................................................
4.03. Coins as Legal Tender ...................................................
Distinctive Features of Negotiable Instruments ...................
Kinds of Negotiable Instruments ............................................
6.01. Bill of Exchange .............................................................
6.02. Promissory Note ............................................................
6.03. Kinds of Bill of Exchange .............................................
6.04. Kinds of Promissory Note ............................................
6.05. Bill of Exchange treated as Promissory Note ............
6.06. Distinctions .....................................................................
ix

5
5
6
6
6
7
7
7
8
8
8
8
8
9
9
10
10

7.
8.

9.

10.
11.
12.
13.

14.

15.

16.
17.
18.

6.07. Negotiability of Certain Documents ...........................

Persons/Parties Involved .........................................................
Distinctions .................................................................................
8.01. Negotiable and Non-Negotiable Instruments ...........
8.02. Negotiability and Assignability ..................................
Requisites of Negotiability .......................................................
9.01. In Writing signed by Maker or Drawer. .....................
9.02. Unconditional Promise or Order ................................
9.03. Sum Certain in Money ..................................................
9.04. When Payable ...............................................................
9.05. Payable to Order or Bearer ...........................................
9.06. Identication of Drawee ...............................................
Omissions and Additional Provisions ..................................
Transfer and Negotiation..........................................................
Holders .......................................................................................
Real and Personal Defenses .....................................................
13.01. Distinctions ....................................................................
13.02. Forgery ............................................................................
13.03. Complete and Incomplete Instruments......................
13.04. Insertion of Wrong Date ...............................................
13.05. Material Alteration ........................................................
13.06. Fraud ..............................................................................
13.07. Failure of, Absence of, or Illicit
Consideration..........................................................
13.08. Minority or Incapacity .................................................
13.09. Prescription ....................................................................
Secondary and Primary Liability ............................................
14.01. Liability of Maker, Drawer, and Acceptor .................
14.02. Warranties of Qualied and General Indorser ..........
14.03. Accommodation Party ..................................................
How to Enforce Liability ..........................................................
15.01. Enforcement of Primary Liability................................
15.02. Enforcement of Secondary Liability ...........................
15.03. Presentment for Payment .............................................
15.04. Presentment for Acceptance.........................................
15.05. Acceptance .....................................................................
15.06. Notice of Dishonor ........................................................
15.07. Protest .............................................................................
15.08. Acceptance for Honor ...................................................
15.09. Payment for Honor........................................................
Bills-in-Set ...................................................................................
Discharge ....................................................................................
Checks .........................................................................................
x

11
12
13
13
13
14
14
15
18
19
21
24
24
27
32
39
40
40
45
48
49
49
50
51
52
53
53
54
55
57
57
57
59
61
62
64
67
68
69
70
71
72

PART II
INSURANCE CODE
1.
2.
3.
4.

5.
6.

7.

8.
9.
10.
11.

12.

13.
14.
15.
16.
17.
18.
19.

Denitions ..............................................................................
Characteristics of Insurance Contract....................................
Elements of Insurance ..............................................................
Perfection of Insurance Contract .............................................
4.01. Cover Notes ................................................................
4.02. The Policy (Contents, Cancellation,
Kinds, Rider) ......................................................
Types of Insurance Contracts ...................................................
Parties .........................................................................................
6.01. Insurer ..............................................................................
6.02. Insured .............................................................................
6.03. Beneciary ........................................................................
Insurable Interest ......................................................................
7.01. Basic Concepts ...............................................................
7.02. Property and Life Insurance Distinguished ..............
7.03. Mortgagor and Mortgagee ..........................................
7.04. Insurable Interest Retained by Mortgagor ................
7.05. Assignor and Beneciary ............................................
7.06. Expectancy ......................................................................
7.07. Effect of Change of Interest. ........................................
Risks Insured Against ...............................................................
Premium .....................................................................................
Transfer of Policy .......................................................................
Devices for Ascertaining and Controlling
the Risk and Loss .............................................................
11.01. Primary Concerns .........................................................
11.02. Devices Dened ............................................................
11.03. Concealment ...............................................................
11.04. Representation................................................................
11.05. Warranty..........................................................................
11.06. Warranty and Representation Distinguished ............
11.07. Other Insurance Clause ..............................................
Incontestability Clause .............................................................
Double Insurance and Reinsurance ........................................
Loss and Claims Settlement .....................................................
Prescription ................................................................................
Right of Subrogation .................................................................
Marine Insurance .....................................................................
Fire Insurance ...........................................................................
Casualty Insurance ....................................................................
xi

75
76
78
81
83
84
87
88
88
89
90
92
92
97
99
102
104
105
105
106
107
109
110
110
110
111
116
116
117
118
120
122
126
130
131
132
144
146

20.
21.
22.
23.
24.

Compulsory Motor Vehicle Liability Insurance ....................

Suretyship ...................................................................................
Life Insurance .............................................................................
Variable Contract ......................................................................
Powers of the Insurance Commisioner ..................................

148
154
154
155
155

PART III
BUSINESS ORGANIZATIONS
A.

BASIC TYPES OF BUSINESS ORGANIZATIONS ...............

1. Individuals and Sole Proprietorship .............................
1.01. Business Name Law .............................................
1.02. Merchants under Code of Commerce ...............
2. Partnerships ......................................................................
3. Joint-Accounts (Cuentas en Participacion) ......................
4. Business Trust ..................................................................
5. Joint Venture .....................................................................
6. Cooperatives .....................................................................

159
159
159
161
165
165
166
166
167

B. CORPORATION CODE OF THE PHILIPPINES ......................

1. Corporation Dened .......................................................
1.01. Enumeration of Attributes ..................................
2. Discussion of Attributes .................................................
2.01. Articial Being/Separate Personality ...............
2.02. Created by Operation of Law ............................
2.03. Right of Succession ..............................................
2.04. Powers, Attributes and Properties ....................
3. Classications and Distinctions .....................................
4. Advantages and Disadvantages of Corporate Form ..
5. Components of a Corporation .......................................
6. Formation ..........................................................................
6.01. Articles of Incorporation .....................................
6.02. Amendment of Articles of Incorporation .........
6.03. Suspension and Cancellation of Certicate ....
7. By-Laws ............................................................................
8. Powers of a Corporation .................................................
8.01. Kinds .....................................................................
8.02. Express Powers ....................................................
8.03. Ultra Vires Acts ....................................................
8.04. Exercise of Powers by Board, Ofcers
and Stockholders ........................................
8.05. Acquisition of its own Shares ............................
8.06. Dividends .............................................................

167
167
167
168
168
178
180
180
180
186
187
191
191
195
196
196
198
198
199
200

xii

202
207
207

8.07.
8.08.

Sale of All or Substantially All Properties ........

Increase or Decrease of Authorized
Capital ...........................................................
Directors and Ofcers ....................................................
Trust Fund Doctrine .......................................................
Stockholders and Shares ................................................
11.01. Subscription Contracts .......................................
11.02. Shares of Stocks ...................................................
Certicate of Stock ..........................................................
Transfer of Shares ............................................................
Rights and Obligations of Stockholders ......................
14.01. Enumeration .........................................................
14.02. Suits by Stockholders/Members .......................
14.03. Pre-emptive Right ................................................
14.04. Right to Vote .........................................................
14.05. Appraisal Right ....................................................
Collection of Unpaid Subscription ................................
Books of the Corporation ................................................
Merger vs. Consolidation ..............................................
Non-Use of Corporate Charter .....................................
Dissolution ........................................................................
Liquidation .......................................................................
Foreign Corporations ......................................................
Close Corporations ..........................................................
Non-Stock Corporations .................................................
Religious Corporations ...................................................

215
215
224
228
228
230
236
236
239
239
241
242
242
244
245
248
249
252
253
256
256
260
262
265

C. SECURITIES REGULATIONS CODE (SRC) .............................

1. Powers and Function of SEC ..........................................
1.01 Transferred Jurisdiction to RTC ........................
2. Securities Dened ...........................................................
3. Denition of Terms .........................................................
4. How Public is Protected .................................................
5. Rules on Registration of Securities ................................
6. Exempt Securities.............................................................
7. Exempt Transactions........................................................
8. Grounds for Revocation of Registration .......................
9. Manipulation of Security Prices.....................................
10. Put, Call and Straddle .....................................................
11. Unlawful Sale and Purchase of Securities ....................
12. Insider ................................................................................
13. Tender Offer ......................................................................
14. Margin Trading ................................................................
15. Violations of SRC .............................................................

267
267
269
270
270
273
274
275
276
279
280
282
282
283
285
288
289

9.
10.
11.

12.
13.
14.

15.
16.
17.
18.
19.
20.
21.
22.
23.
24.

xiii

213

PART IV
BANKING LAWS
1.

Banks Dened...................................................................
1.01. Nature of Business ...............................................
1.02. Authority to Incorporate and Operate ..............
Classication of Banks ...................................................
Functions of Banks ...........................................................
Deposit Function ..............................................................
4.01. Deposit Governed by Law on
Simple Loan.................................................
4.02. Depositors .............................................................
4.03. Kinds of Deposit ..................................................
4.04. Other Accounts ....................................................
4.05. Secrecy of Bank Deposits ...................................
4.06. Garnishment of Deposits ....................................
4.07. Deposit Insurance with PDIC ............................
4.08. Unclaimed Balances Law ...................................
Loan Function of Banks ..................................................
5.01. Basic Rules/Restrictions .....................................
5.02. DOSRI Accounts ..................................................
5.03. Collaterals .............................................................
Prohibited Acts of Borrowers .........................................
Ownership of Banks ........................................................
7.01. Foreign Ownership ..............................................
7.02. Filipino Stockholdings ........................................
7.03. Family Groups ......................................................
Directors and Ofcers .....................................................
Liquidity and Security Regulations ..............................
Ownership of Real Property...........................................
Loan to Banks ...................................................................
Conservatorship ...............................................................
Receivership and Liquidation ........................................
Trust Operations...............................................................
The Bangko Sentral ng Pilipinas ....................................

290
291
292
292
294
295

RELATED LAWS .......................................................................

1. Anti-Money Laundering Act .........................................
2. Truth in Lending Act ......................................................
3. Consumer Act ..................................................................
4. Human Security Act of 2007 ...........................................

327
327
332
335
337

2.
3.
4.

5.

6.
7.

8.
9.
10.
11.
12.
13.
14.
15.
A.

xiv

295
296
296
298
298
302
303
305
306
306
307
309
311
311
311
312
313
313
315
316
317
317
318
322
323

PART V
CREDIT TRANSACTIONS
A.

WAREHOUSE RECEIPTS LAW ..............................................

1. Denitions .........................................................................
2. Functions of Documents of Title ....................................
3. Negotiability of Warehouse Receipts ............................
4. Formalities .......................................................................
5. Negotiation of Warehouse Receipts ..............................
6. Effects of Negotiation ......................................................
7. Persons Who May Negotiate .........................................
8. Warranties ........................................................................
9. Non-Negotiable Receipts ................................................
10. Defense for Non-Delivery or Misdelivery ...................
11. Warehousemans Lien .....................................................
12. Adverse Claimant ...........................................................
13. Attachment or Levy .........................................................

341
341
342
342
342
344
345
348
349
350
351
354
355
355

B.
C.

GENERAL BONDED WAREHOUSE LAW ...........................

LETTERS OF CREDIT ...............................................................
1. Denition ..........................................................................
2. Governing Laws ...............................................................
3. Parties ...............................................................................
4. Independent Contracts....................................................
4.01. Independence Principle ......................................
4.02. Banks Deal with Documents Only ....................
4.03. Fraud Exception ..................................................
5. Kinds ..................................................................................

356
357
357
357
358
359
359
360
360
360

D.
E.
F.

TRUST RECEIPTS LAW ...........................................................

BULK SALES LAW....................................................................
MORTGAGE ..............................................................................
1. Common Requisites.........................................................
2. Real Estate Mortgage .......................................................
3. Chattel Mortgage .............................................................

361
367
368
368
369
374

G.
H.

RECTO LAW ..............................................................................

FINANCIAL REHABILITATION AND INSOLVENCY
ACT OF 2010 ...................................................................
1. Policies and Denitions ..................................................
2. Excluded Debtors .............................................................
3. Rehabilitation ...................................................................
4. Out-of-Court Rehabilitation ...........................................

378

xv

379
379
384
384
391

5.
6.
7.
8.
9.

Suspension of Payment ...................................................

Liquidation of Individual Debtor ..................................
Liquidation Process .........................................................
Distribution of Assets (Concurrence and Preference
of Credits) ................................................................
Cross-Boarder Insolvency ...............................................

392
396
398
400
405

PART VI
TRANSPORTATION AND PUBLIC UTILITIES
A.

B.

GENERAL CONCEPTS ............................................................

1. Concept of Common Carriers ........................................
1.01. Test .........................................................................
1.02. Common Carriers and Private
Carriers Distinguished .................................
2. Governing Laws ...............................................................
3. Extraordinary Diligence and Presumption
of Negligence ..........................................................
4. Defenses of Common Carriers .......................................
5. Duration of Liability .......................................................
6. Liability for Acts of Employees and Passengers .........
7. Limiting Stipulations .......................................................
7.01. Stipulation Reducing Degree Diligence............
7.02. Valid Stipulations .................................................
7.03. Invalid Stipulations .............................................
7.04. Carriage of Goods by Sea Act (COGSA)...........
7.05. Purposes ................................................................
8. Registered Owner Rule and Kabit System ...................
9. Concurrent Causes of Action .........................................
10. Passengers Baggages .....................................................
11. Successive Carriers ..........................................................

415
416
420
424
425
425
425
426
426
427
428
429
431
431

MARITIME LAW .......................................................................

12. General Concepts ...........................................................
12.01. Maritime Law Dened......................................
12.02. Vessel Dened ...................................................
13. Limited Liability Rule .....................................................
14. Maritime Protest...............................................................
15. Collision ...........................................................................
16. Arrival Under Stress ........................................................
17. Persons Involved in Maritime Commerce ..................
17.01. Ship Agents ...........................................................

432
432
432
432
433
435
435
437
437
437

xvi

407
407
407
410
414

18.
19.
20.
21.
22.
23.

24.

C.

D.

17.02. Captains and Masters ..........................................

17.03. Ofcers and Crew ................................................
17.04. Supercargoes ........................................................
17.05. Desertion ..............................................................
General and Particular Average ....................................
Charter Party ....................................................................
Bill of Lading ...................................................................
Loans on Bottomry and Respondentia .........................
Procedure and Prescriptive Period for Claims ...........
Ship Mortgage Decree ....................................................
23.01. Who may Constitute Mortgage .........................
23.02. Formal Requirements ..........................................
23.03. Arrest and Foreclosure ........................................
23.04. Concurrence and Preference of Credits ............
23.05. Maritime Lien .......................................................
Salvage Law ......................................................................
24.01. Denition of Salvage ..........................................
24.02. Requirements for Compensation .......................
24.03. Amount of Reward or Compensation ..............
24.04. Persons Entitled to Reward ................................

WARSAW CONVENTION AND CIVIL

AVIATION LAWS ............................................................
25. Warsaw Convention ........................................................
25.01. Transportation by Air Dened ...........................
25.02. Damage or Injury for Which Carrier
is Liable ..........................................................
25.03. Limit of Liability of Carrier ................................
25.04. Tort Liability .........................................................
25.05. Jurisdiction/Venue ..............................................
26. Civil Aviation ...................................................................
26.01. Denitions .............................................................
26.02. Inspection of Aircraft ...........................................
26.03. Nationality and Ownership of Aircraft ............
PUBLIC SERVICE ACT.............................................................
27. Public Service Act ............................................................
27.01. Agencies that Replaced the Public
Service Commission .....................................
27.02. Conditions for Issuance of Certicate
of Public Convenience
and Necessity (CPCN) .................................
27.03. Certicate of Public Convenience (CPC)
as Property ....................................................
xvii

437
438
439
439
439
444
444
445
446
448
448
449
450
450
451
452
452
452
452
453
453
453
454
454
454
455
456
456
457
458
460
461
461
461

462
462

27.04. CPC and CPCN Distinguished ..........................

27.05. Prior Operator Rule .............................................
27.06. Grounds for Revocation of Certicate ..............
27.07. Notice and Hearing .............................................
27.08. Franchise Dened ................................................
27.09. Public Utility Dened..........................................
27.10. Rate Regulation ....................................................
27.11. Foreign Equity ......................................................
27.12 Non-Exclusivity of Franchise ..............................

462
462
463
463
464
465
466
468
469

PART VII
INTELLECTUAL PROPERTY CODE
1.
2.
3.

4.
5.

6.

State Policies ....................................................................

Kinds of Intellectual Property ........................................
International Law Related Provisions...........................
3.01. Reciprocity ............................................................
3.02. National Treatment ..............................................
3.03. Most-Favoured-Nation Treatment.....................
Intellectual Property Ofce ............................................
Copyright ..........................................................................
5.01. Denitions .............................................................
5.02. Civil Code Provisions ..........................................
5.03. When Rights are Conferred ................................
5.04. Who Owns the Copyright...................................
5.05. Duration of Copyright.........................................
5.06. Copyrightable Objects .........................................
5.07. Unprotected Works ..............................................
5.08. Rights of Authors .................................................
5.09. Publishers Rights ................................................
5.10. Acts that Do Not Infringe Copyright ................
5.11. Fair Use..................................................................
5.12. Importation for Personal Purposes ...................
5.13. Infringement .........................................................
Trademarks .......................................................................
6.01. Functions ...............................................................
6.02. Acquisition of Marks ...........................................
6.03. Marks that Cannot be Registered ......................
6.04. Limitations ............................................................
6.05. Internationally Well-Known Marks ..................
6.06. Rights Conferred ..................................................
6.07. Duration ...............................................................
xviii

470
471
473
473
473
473
474
475
475
475
476
476
477
478
479
481
482
482
484
484
485
488
488
488
490
491
492
492
493

7.

8.

6.08. Infringement .........................................................

493
6.09. Protection of Tradename .....................................
499
6.10. Unfair Competition..............................................
499
6.11. Inter-Partes Cases.................................................
500
Patents ...............................................................................
504
7.01. Denitions, Requisites and Purposes ...............
504
7.02. Classes of Patentable Inventions .......................
506
7.03. Non-Patentable Inventions .................................
506
7.04. Person Entitled to Right ......................................
507
7.05. Limitations of Patent Rights ...............................
507
7.06. Prejudicial Disclosure ..........................................
509
7.07. Non-Prejudicial Disclosure .................................
509
7.08. Term of a Patent ...................................................
509
7.09. Infringement .........................................................
509
7.10. Compulsory Licensing ........................................
511
7.11. Concept of Divisional Applications ..................
513
Trade Secrets .....................................................................
515
8.01. Applicable Laws...................................................
516
8.02. Factors.......................................................................... 516

xix