Philippine Law On Patents, Trademarks And Copyright : Background Reading Material On Intellectual Property, Philippine National Supplement

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(h) Restriction On Research & Development There are basically three (3) types of restrictive business clauses which prohibit the licensee to initiate R&D activities or activities geared towards the development of technical skills. These clauses are considered counter-productive to the country's overall objective of uplifting local technological capability and aie thus not accept- able.
(i) Clauses which restrict the research and development activi- ties of the technology recipient designed to a
...bsorb and adapt the trans- 206 READING MATERIAL ON INTELLECTUAL PROPERTY, PHIL. NAT'L. SUPPLEMENT felted technology to local conditions or to initiate R&D programs in connection with new products, processes or equipment aie not al- lowed.
(ii) Provisions which prevent the technology recipient from adapting the imported technology to local conditions, or introducing innovations to it, as long as it does not impair the quality standards prescribed by the technology supplier are likewise not allowed as they again restrict the growth of local technological capability.


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