Question

A. Patents: Ownership of a Patent

Consider the following scenario:

XYZ Corporation, a pharmaceutical company based in the Philippines, filed a patent application for a new drug formulation that treats a specific type of cancer. The patent was granted by the Intellectual Property Office (IPO) and XYZ Corporation is now the registered owner of the patent.

One year after being granted the patent, XYZ Corporation entered into a joint venture agreement with ABC Pharmaceuticals, a foreign pharmaceutical company, to further develop and commercialize the patented drug. Under the agreement, ABC Pharmaceuticals will provide funding for research and development, while XYZ Corporation will handle the manufacturing and distribution of the drug.

However, after several years of successful collaboration, a dispute arose between XYZ Corporation and ABC Pharmaceuticals regarding the ownership rights to the patent. ABC Pharmaceuticals claims that they should have joint ownership of the patent since they provided funding for its development. XYZ Corporation, on the other hand, insists that they are the sole owners of the patent.

Determine the rights and ownership of XYZ Corporation and ABC Pharmaceuticals over the patented drug formulation. Discuss the relevant provisions of the Philippine Patent Act (Sections 28-30) and any applicable legal principles or precedents that may apply in resolving the dispute.