DOJ Opinion No. 066, s. 1996

DOJ OPINION NO. 066 , s. 1996 July 5, 1996 Secretary William G. Padolina Department of Science and Technology Taguig, Metro Manila Sir : This refers to your request for opinion relating to the proper interpretation of the phrase "Filipino Inventors Society" as used in Republic Act No. 7459 (The Investors and Invention Incentives Act of the Philippines). It appears that various investors group sought your intercession for this Department to render an opinion on the "redefinition" of the phrase "Filipino Investors Society" as provided in R.A. No. 7459; that the Technology Application and Promotion Institute (TAPI), the lead agency in the implementation of the law, has interpreted the phrase as referring to the Filipino Investors Society, Inc., (FIS, Inc.), an association of Filipino investors; and that not all inventors, however, are members thereof, but belong to other organizations some of which have been formed lately. You state that R.A. No. 7459 requires a certification from the Filipino Investors Society (FIS) before an inventor can avail of the law's benefits, such as tax incentives and duty exemptions, among others. Accordingly, inventors who are not members of the FIS, Inc. would like to raise for review the following: "a. The phrase 'Filipino Investors Society' as contained in the law in the DOST Implementing Guidelines (MC-001 dated 12 April 1994) is a generic term for all accredited inventor's organization. Attached is a copy of RA 7459 and DOST-MC-001 for your reference; b. All terms as provided in RA 7459 are clearly defined except for the term 'FIS'; c. Non-inclusion of the word 'Inc.' in RA 7459 and DOST Implementing Guidelines, respectively; d. Article IV Sec. 8-b of 7459 indicated TAPI's expanded function of accrediting and recognizing various inventors organization throughout their activities. Various inventor groups interpreted this section in the following manner: "Once accredited, an inventor group is already entitled to avail of RA 7459 benefits. Thus, any accredited organization can issue a certification as to the inventions' authenticity and commerciability which is one requirement as provided for by BIR Regulations No. 19-93 (copy attached) for an inventor to avail of tax incentives and exemptions". In the provisions of R.A. No. 7459 (Sec. 4 Art. II; Sec. 5, Art. III; Sec. 10, Art. IV) Sec. 12, Art. VI, I note that the phrase "Filipino Inventors Society" is always preceded by the word "the". In a number of cases, it was held that the word "the" is an article which particularizes the subject spoken of (U.S. vs. Hudson, 65 F 68, 71; People vs. Enlow, 310 P 2d 539, 546, citing cases). Thus, in Brooks vs. Zabba, 450 P 2d 653, it was said: "It is a rule of law well established that the definite article 'the' particularizes the subject which it precedes. It is a word of limitation as opposed to the indefinite or generalizing force of 'a' or 'an'." (at p. 655). The law, however, did not define the term "Filipino Inventors Society" to specifically identify the entity referred to. Further, I note that Section 8 of Article IV vests the TAPI with the expanded function to "[A]ccredit and recognize inventor organizations throughout their activities". Thus, while the law allows the TAPI to accredit and recognize more than one inventor organization, the law also envisions a single "Filipino Inventors Society" to represent the inventor sector and to perform certain tasks under the law. In this regard, the definition of the term "Filipino Inventors Society" should take into consideration the constitutional guarantee of the freedom of association (Sec. 8, Art. III, 1987 Constitution). Particularly, the term should not be construed as to curtail the freedom of association. There may be such curtailment if functions and privileges provided by law, are arbitrarily vested upon a single organization or association to the exclusion of the others without established and adequate standards or criteria which are consistent with or germane to the purposes of the law. In view of the foregoing, it is my opinion that the TAPI which is tasked to promulgate the rules and regulations necessary to carry out the purposes of the Act should in consultation with the Filipino Inventors Society and subject to the approval of the Secretary of the DOST (Sec. 12 Art. VI RA 7459), formulate the adequate standards or criteria to determine a single "umbrella" organization which shall be accredited and recognized by the TAPI as the "Filipino Inventors Society". You are advised to consult with the concerned inventors association or organization prior to the adoption of the standards or criteria, subject to the approval of the DOST. cdasia Very truly yours, (SGD.) TEOFISTO T. GUINGONA, JR. Secretary