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8/10/2019 Air Philippines Corporation vs. Pennswell, Inc.
Air Philippines Corporation vs. Pennswell, Inc. G.R. No. 172835. December 13, 2007. *
AIR P ILIPPINE! CORPORA"ION, #e$%$%o&er, vs.PENN!'ELL, INC.,re(#o&)e&$.
Intellectual Property Law; Trade Secrets; Words and Phrases; A trade secret isdefined as a plan or process, tool, mechanism or compound known only to its ownerand those of his employees to whom it is necessary to confide it, which definition alsoe tends to a secret formula or process not patented, !ut known only to certainindividuals usin" it in compoundin" some article of trade havin" a commercialvalue . A $r+)e (ecre$ %( )e %&e) +( + #-+& or #roce((, $oo-, mec +&%(m or com#o/&)&o & o&- $o %$( o &er +&) $ o(e o %( em#-o ee( $o om %$ %( &ece((+r $oco& %)e %$. " e )e %&%$%o& +-(o e $e&)( $o + (ecre$ orm/-+ or #roce(( &o$ #+$e&$e), b/$&o & o&- $o cer$+%& %&)% %)/+-( /(%& %$ %& com#o/&)%& (ome +r$%c-e o $r+)e+ %& + commerc%+- +-/e. A $r+)e (ecre$ m+ co&(%($ o +& orm/-+, #+$$er&,)e %ce, or com#%-+$%o& o %& orm+$%o& $ +$6 1 %( /(e) %& o&e9( b/(%&e((: +&) 2 % e($ e em#-o er +& o##or$/&%$ $o ob$+%& +& +) +&$+ e o er com#e$%$or( o )o &o$
#o((e(( $ e %& orm+$%o&. Ge&er+-- , + $r+)e (ecre$ %( + #roce(( or )e %ce %&$e&)e) orco&$%&/o/( /(e %& $ e o#er+$%o& o $ e b/(%&e((, or e +m#-e, + m+c %&e or orm/-+,
b/$ c+& be + #r%ce -%($ or c+$+-o /e or (#ec%+-%;e) c/($omer -%($. I$ %( %&)/b%$+b-e $ +$$r+)e (ecre$( co&($%$/$e #ro#r%e$+r r% $(. " e %& e&$or, )%(co erer, or #o((e((or o +$r+)e (ecre$ or (%m%-+r %&&o +$%o& +( r% $( $ ere%& %c m+ be $re+$e) +( #ro#er$ ,+&) or)%&+r%- +& %&</&c$%o& %-- be r+&$e) $o #re e&$ $ e )%(c-o(/re o $ e $r+)e(ecre$ b o&e o ob$+%&e) $ e %& orm+$%o& =%& co& %)e&ce> or $ ro/ +=co& %)e&$%+- re-+$%o&( %#.> Amer%c+& </r%(#r/)e&ce +( /$%-%;e) $ e o--o %& +c$or($o )e$erm%&e % +& %& orm+$%o& %( + $r+)e (ecre$, $o %$6 1 $ e e $e&$ $o %c $ e%& orm+$%o& %( &o & o/$(%)e o $ e em#-o er9( b/(%&e((: 2 $ e e $e&$ $o %c $ e%& orm+$%o& %( &o & b em#-o ee( +&) o$ er( %& o- e) %& $ e b/(%&e((: 3 $ ee $e&$ o me+(/re( $+ e& b $ e em#-o er $o /+r) $ e (ecrec o $ e %& orm+$%o&: 4
$ e +-/e o $ e %& orm+$%o& $o $ e em#-o er +&) $o com#e$%$or(: 5 $ e +mo/&$ oe or$ or mo&e e #e&)e) b $ e com#+& %& )e e-o#%& $ e %& orm+?
21! PREME CO R" REPOR"! ANNO"A"ED Air Philippines Corporation vs. Pennswell, Inc.
$%o&: +&) $ e e $e&$ $o %c $ e %& orm+$%o& co/-) be e+(%- or re+)%-ob$+%&e) $ ro/ +& %&)e#e&)e&$ (o/rce.
Same; Same; Any determination !y mana"ement as to the confidential nature oftechnolo"ies, processes, formulae, or other so#called trade secrets must have a
su!stantial factual !asis which can pass $udicial scrutiny; The parameters in thedetermination of trade secrets are such su!stantial factual !asis that can withstand
$udicial scrutiny . I& Cocoland %evelopment Corporation v. &ational La!or 'elations Commission , 25 !CRA 51 1 , $ e %((/e +( $ e -e +-%$ o +&em#-o ee9( $erm%&+$%o& o& $ e ro/&) o /&+/$ or%;e) )%(c-o(/re o $r+)e (ecre$(." e Co/r$ -+%) )o & $ e r/-e $ +$ +& )e$erm%&+$%o& b m+&+ eme&$ +( $o $ eco& %)e&$%+- &+$/re o $ec &o-o %e(, #roce((e(, orm/-+e or o$ er (o?c+--e) $r+)e(ecre$( m/($ + e + (/b($+&$%+- +c$/+- b+(%( %c c+& #+(( </)%c%+- (cr/$%& . " eCo/r$ re<ec$e) $ e em#-o er9( &+ e) co&$e&$%o& $ +$ %$( o & )e$erm%&+$%o& +( $o +$co&($%$/$e( + $r+)e (ecre$ ( o/-) be b%&)%& +&) co&c-/(% e /#o& $ e NLRC. A( +caveat , $ e Co/r$ (+%) $ +$ $o r/-e o$ er %(e o/-) be $o #erm%$ +& em#-o er $o -+be-+-mo($ +& $ %& + $r+)e (ecre$, +&) $ ereb cre+$e + e+#o& %$ %c e %$ m++rb%$r+r%- )%(m%(( +& em#-o ee o& $ e #re$e $ $ +$ $ e -+$$er (ome o )%(c-o(e) +$r+)e (ecre$, e e& % %& +c$ $ ere be &o&e +$ +-- $o (#e+ o . e&ce, %&Cocoland , $ e
#+r+me$er( %& $ e )e$erm%&+$%o& o $r+)e (ecre$( ere (e$ $o be (/c su!stantial factual !asis that can withstand $udicial scrutiny .
Actions; Pleadin"s and Practice; (odes of %iscovery; Production or Inspectionof %ocuments; The production or inspection of documents or thin"s as a mode ofdiscovery sanctioned !y the 'ules of Court may !e availed of !y any party upon a
showin" of "ood cause therefor !efore the court in which an action is pendin" . — 'e&o $+ e + -oo +$ !ec$%o& 1, R/-e 27 o $ e R/-e( o Co/r$, %c #erm%$( #+r$%e( $o%&(#ec$ )oc/me&$( or $ %& ( /#o& + ( o %& o oo) c+/(e be ore $ e co/r$ %& %c
+& +c$%o& %( #e&)%& . I$( e&$%re #ro %(%o& re+)(6 !EC"ION 1. (otion for productionor inspection order. #o& mo$%o& o +& #+r$ ( o %& oo) c+/(e $ ere ore, $ eco/r$ %& %c +& +c$%o& %( #e&)%& m+ + or)er +& #+r$ $o #ro)/ce +&) #erm%$ $ e%&(#ec$%o& +&) co# %& or # o$o r+# %& , b or o& be +- o $ e mo %& #+r$ , o +&)e(% &+$e) )oc/me&$(, #+#er(, boo (, +cco/&$(, -e$$er(, # o$o r+# (, ob<ec$( or$+& %b-e $ %& (, &o$ #r% %-e e), %c co&($%$/$e or co&$+%& e %)e&ce m+$er%+- $o +&
8/10/2019 Air Philippines Corporation vs. Pennswell, Inc.
)e(cr%be), +&) m/($ co&($%$/$e or co&$+%& e %)e&ce m+$er%+- $o +& m+$$er %& o- e) %&$ e +c$%o& +&) %c +re %& $ e #+r$ 9( #o((e((%o&, c/($o) or co&$ro-.
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218! PREME CO R" REPOR"! ANNO"A"ED Air Philippines Corporation vs. Pennswell, Inc.
Same; Same; Same; Same; Same; Privile"ed Communication; Types of %is+ualification !y 'eason of Privile"ed Communication; There are other privile"edmatters that are not mentioned !y 'ule /0, amon" which are the followin"1 2a3editors may not !e compelled to disclose the source of pu!lished news, 2!3 voters maynot !e compelled to disclose for whom they voted, 2c3 trade secrets, 2d3 informationcontained in ta census returns, and 2d3 !ank deposits . !ec$%o& 24 o R/-e 130)r+ ( $ e $ #e( o )%( /+-% %c+$%o& b re+(o& o #r% %-e e) comm/&%c+$%o&, $o %$6 +comm/&%c+$%o& be$ ee& /(b+&) +&) % e: b comm/&%c+$%o& be$ ee& +$$or&e +&)c-%e&$: c comm/&%c+$%o& be$ ee& # (%c%+& +&) #+$%e&$: ) comm/&%c+$%o&
be$ ee& #r%e($ +&) #e&%$e&$: +&) e #/b-%c o %cer( +&) #/b-%c %&$ere($.There are,however, other privile"ed matters that are not mentioned !y 'ule /0. Amo& $ em+re $ e o--o %& 6 + e)%$or( m+ &o$ be com#e--e) $o )%(c-o(e $ e (o/rce o
#/b-%( e) &e (: b o$er( m+ &o$ be com#e--e) $o )%(c-o(e or om $ e o$e):c trade secrets : ) %& orm+$%o& co&$+%&e) %& $+ ce&(/( re$/r&(: +&) ) b+&)e#o(%$(. Intellectual Property Law; Trade Secrets; That trade secrets are of a
privile"ed nature is !eyond +ui!!le the protection that this $urisdiction affords totrade secrets is evident in our laws . " +$ $r+)e (ecre$( +re o + #r% %-e e) &+$/re %(
be o&) /%bb-e. " e #ro$ec$%o& $ +$ $ %( </r%()%c$%o& + or)( $o $r+)e (ecre$( %( e %)e&$%& o/r -+ (. " e I&$er%m R/-e( o Proce)/re o& Go er&me&$ Re +b%-%$+$%o&, e ec$% e15 December 2000, %c +##-%e( $o6 1 #e$%$%o&( or re +b%-%$+$%o& %-e) bcor#or+$%o&(, #+r$&er( %#(, +&) +((oc%+$%o&( #/r(/+&$ $o Pre(%)e&$%+- Decree No. 02?A, +( +me&)e): +&) 2 c+(e( or re +b%-%$+$%o& $r+&( erre) rom $ e !ec/r%$%e( +&)E c +& e Comm%((%o& $o $ e R"C( #/r(/+&$ $o Re#/b-%c Ac$ No. 87 , o$ er %(e&o & +( " e !ec/r%$%e( Re /-+$%o& Co)e, e #re((- #ro %)e( $ +$ $ e co/r$ m+
%((/e +& or)er $o protect trade secrets or other confidential research, development, orcommercial information be-o& %& $o $ e )eb$or. Moreo er, $ e !ec/r%$%e( Re /-+$%o&Co)e %( e #-%c%$ $ +$ $ e !ec/r%$%e( +&) E c +& e Comm%((%o& %(not re+uired orauthori4ed to re+uire the revelation of trade secrets or processes in any application,report or document filed with the Commission. " %( co& %)e&$%+-%$ %( m+)e
#+r+mo/&$ +( + -%m%$+$%o& $o $ e r% $ o +& member o $ e e&er+- #/b-%c, /#o&re /e($, $o + e +cce(( $o +-- %& orm+$%o& %-e) %$ $ e Comm%((%o&.
8/10/2019 Air Philippines Corporation vs. Pennswell, Inc.
220! PREME CO R" REPOR"! ANNO"A"ED Air Philippines Corporation vs. Pennswell, Inc.
credits, de!ts or o!li"ations which are primarily for personal, family, householdor a"ricultural purposes, which shall include, !ut not !e limited to, food, dru"s,cosmetics, and devices. I& $ e c+(e +$ b+r, #e$%$%o&er c+&&o$ re- o& !ec$%o& 77 oRe#/b-%c Ac$ 73 4, or $ e Co&(/mer Ac$ o $ e P %-%##%&e(, %& or)er $o com#e-re(#o&)e&$ $o re e+- $ e c em%c+- com#o&e&$( o %$( #ro)/c$(. ' %-e %$ %( $r/e $ +$ +--co&(/mer #ro)/c$( )ome($%c+-- (o-), e$ er m+&/ +c$/re) -oc+-- or %m#or$e),( +-- %&)%c+$e $ e%r e&er+- m+ e or +c$% e %& re)%e&$( %& $ e%r re(#ec$% e -+be-( o
#+c + %& , $ e -+ )oe( &o$ +##- $o re(#o&)e&$. Re(#o&)e&$9( (#ec%+-%;e)-/br%c+&$( &+me- , Co&$+c$ Gre+(e, Co&&ec$or Gre+(e, " % o $ro#%c Gre+(e, D%?E-ec$r%c !$re& $ Pro$ec$% e Co+$%& , Dr L/br%c+&$ +&) A&$%?!e%;e Com?#o/&) +re&o$ co&(/mer #ro)/c$(. =Co&(/mer #ro)/c$(,> +( %$ %( )e %&e) %& Ar$%c-e 4 , re er( $ooo)(, (er %ce( +&) cre)%$(, )eb$( or ob-% +$%o&( %c +re #r%m+r%- or #er(o&+-,+m%- , o/(e o-) or + r%c/-$/r+- #/r#o(e(, %c ( +-- %&c-/)e, b/$ &o$ be -%m%$e) $o,oo), )r/ (, co(me$%c(, +&) )e %ce(. " %( %( &o$ $ e &+$/re o re(#o&)e&$9( #ro)/c$(.I$( #ro)/c$( +re &o$ %&$e&)e) or #er(o&+-, +m%- , o/(e o-) or + r%c/-$/r+- #/r#o(e(.R+$ er, $ e +re or %&)/($r%+- /(e, (#ec% %c+-- or $ e /(e o +%rcr+ $ #ro#e--er( +&)e& %&e(.
Same; Same; Special Law on Counterfeit %ru"s 2'.A. &o. )0/3; The speciallu!ricants produced !y respondent are outside the scope of '.A. &o. )0/ they donot come within the purview of a dru" which, as defined therein, refers to anychemical compound or !iolo"ical su!stance, other than food, that is intended for usein the treatment, prevention or dia"nosis of disease in man and animals. Pe$%$%o&er9( +r /me&$ $ +$ Re#/b-%c Ac$ No. 8203, or $ e !#ec%+- L+ o& Co/&$er e%$Dr/ (, re /%re( $ e )%(c-o(/re o $ e +c$% e %& re)%e&$( o + )r/ %( +-(o o& +/-$ro/&). Re(#o&)e&$9( #ro)/c$( +re o/$(%)e $ e (co#e o $ e c%$e) -+ . " e )o &o$
come %$ %& $ e #/r %e o + )r/ %c , +( )e %&e) $ ere%&, re er( $o +& c em%c+-com#o/&) or b%o-o %c+- (/b($+&ce, o$ er $ +& oo), $ +$ %( %&$e&)e) or /(e %& $ e$re+$me&$, #re e&$%o& or )%+ &o(%( o )%(e+(e %& m+& or +&%m+-(. A +%&, (/c +re &o$$ e c +r+c$er%($%c( o re(#o&)e&$9( #ro)/c$(.
Same; Same; To ic Su!stances and <a4ardous and &uclear Wastes Control Actof 770 2'.A. &o. =7=73; Section ) of '.A. &o. =7=7 deems as confidential matters,which may not !e made pu!lic, those that would divul"e trade secrets, includin"
8/10/2019 Air Philippines Corporation vs. Pennswell, Inc.
production or sales fi"ures or methods, production or processes uni+ue to suchmanufac#
221
VOL. 540, DECEMBER 13, 2007
221 Air Philippines Corporation vs. Pennswell, Inc.
turer, processor or distri!utor, or would otherwise tend to affect adversely thecompetitive position of such manufacturer, processor or distri!utor the ri"ht toconfidentiality is reco"ni4ed !y said Act as primordial . 'e )o &o$ %&) mer%$ or+##-%c+b%-%$ %& #e$%$%o&er9( %& oc+$%o& o !ec$%o& 12 o $ e "o %c !/b($+&ce( ++;+r)o/( +&) N/c-e+r '+($e( Co&$ro- Ac$ o 1 0, %c r+&$( $ e #/b-%c +cce(($o recor)(, re#or$( or %& orm+$%o& co&cer&%& c em%c+- (/b($+&ce( +&) m% $/re(,%&c-/)%& (+ e$ )+$+ (/bm%$$e), +&) )+$+ o& em%((%o& or )%(c +r e %&$o $ ee& %ro&me&$. To reiterate, Section ) of said Act deems as confidential matters,which may not !e made pu!lic, those that would divul"e trade secrets, includin"
production or sales fi"ures or methods; production or processes uni+ue to suchmanufacturer, processor or distri!utor, or would otherwise tend to affect adverselythe competitive position of such manufacturer, processor or distri!utor. I$ %( $r/e $ +$/&)er $ e (+me Ac$, $ e De#+r$me&$ o E& %ro&me&$ +&) N+$/r+- Re(o/rce( m+re-e+(e %& orm+$%o&: o e er, $ e c-e+r %m#or$ o $ e -+ %( $ +$ (+%) +/$ or%$ %(-%m%$e) b $ e r% $ $o co& %)e&$%+-%$ o $ e m+&/ +c$/rer, #roce((or or )%($r%b/$or,%c %& orm+$%o& m+ be re-e+(e) o&- $o + me)%c+- re(e+rc or (c%e&$% %c %&($%$/$%o&ere $ e %& orm+$%o& %( &ee)e) or $ e #/r#o(e o me)%c+- )%+ &o(%( or $re+$me&$ o
+ #er(o& e #o(e) $o $ e c em%c+- (/b($+&ce or m% $/re. " e r% $ $o co& %)e&$%+-%$ %(reco &%;e) b (+%) Ac$ +( #r%mor)%+-. Pe$%$%o&er +( &o$ m+)e $ e (-% $e($ +$$em#$ $o( o $ +$ $ e(e c%rc/m($+&ce( +re + +%-%& %& $ e c+(e +$ b+r.
Same; Same; Same; Trade secrets should receive "reater protection fromdiscovery, !ecause they derive economic value from !ein" "enerally unknown andnot readily ascertaina!le !y the pu!lic; The party seekin" disclosure of trade secrets
should show a compellin" reason for the courts to lift the veil of confidentiality which shields the other party6s trade secrets . " e #r% %-e e %( &o$ +b(o-/$e: $ e $r%+- co/r$m+ com#e- )%(c-o(/re ere %$ %( %&)%(#e&(+b-e or )o%& </($%ce. 'e )o &o$,o e er, %&) re+(o& $o e ce#$ re(#o&)e&$9( $r+)e (ecre$( rom $ e +##-%c+$%o& o $ er/-e o& #r% %-e e. " e re e-+$%o& o re(#o&)e&$9( $r+)e (ecre$( (er e( &o be$$er
#/r#o(e $o $ e )%(#o(%$%o& o $ e m+%& c+(e #e&)%& %$ $ e R"C, %c %( o& $ eco--ec$%o& o + (/m o mo&e . A( c+& be -e+&e) rom $ e +c$(, #e$%$%o&er rece% e)
8/10/2019 Air Philippines Corporation vs. Pennswell, Inc.
re(#o&)e&$9( oo)( %& $r+)e %& $ e &orm+- co/r(e o b/(%&e((. "o be (/re, $ ere +re)e e&(e( /&)er $ e -+ ( o co&$r+c$( +&) (+-e( + +%-+b-e $o #e$%$%o&er. O& $ e o$ er+&), $ e re+$er %&$ere($ o </($%ce
222
222! PREME CO R" REPOR"! ANNO"A"ED Air Philippines Corporation vs. Pennswell, Inc.
o/ $ $o + or re(#o&)e&$ +( $ e o-)er o $r+)e (ecre$(. I e ere $o e% $ eco& -%c$%& %&$ere($( be$ ee& $ e #+r$%e(, e r/-e %& + or o $ e re+$er %&$ere($ ore(#o&)e&$. Trade secrets should receive "reater protection from discovery, !ecausethey derive economic value from !ein" "enerally unknown and not readilyascertaina!le !y the pu!lic. "o $ e m%&) o $ %( Co/r$, #e$%$%o&er +( &o$ +b-e $o( o + com#e--%& re+(o& or /( $o -% $ $ e e%- o co& %)e&$%+-%$ %c ( %e-)(re(#o&)e&$9( $r+)e (ecre$(.PE"I"ION or re %e o& cer$%or+r% o $ e )ec%(%o& +&) re(o-/$%o& o $ eCo/r$ o A##e+-(.
" e +c$( +re ($+$e) %& $ e o#%&%o& o $ e Co/r$.The Le"al %epartment or #e$%$%o&er.
>ondevilla, 5asareno, ?oun", 'ondario @ Li!ro$o Law -ffices orre(#o&)e&$.
C ICO?NAHARIO, 5.1
Pe$%$%o&er A%r P %-%##%&e( Cor#or+$%o& (ee (,via $ e %&($+&$ Pe$%$%o& orRe %e /&)er R/-e 45 o $ e R/-e( o Co/r$, $ e &/--% %c+$%o& o $ e 1ebr/+r 200 Dec%(%o &1 +&) $ e 25 M+ 200 Re(o-/$%o& 2 o $ e Co/r$ oA##e+-( %& CA?G.R. !P No. 8 32 , %c + %rme) $ e Or)er 3 ) +$e) 30F/&e 2004 o $ e Re %o&+- "r%+- Co/r$ R"C , M+ +$% C%$ , Br+&c 4, %&C% %- C+(e No. 00?5 1.
Pe$%$%o&er A%r P %-%##%&e( Cor#or+$%o& %( + )ome($%c cor#or+$e& + e) %& $ e b/(%&e(( o +%r $r+&(#or$+$%o& (er %ce(. O& $ e o$ er +&),re(#o&)e&$ Pe&&( e--, I&c. +( or +&%;e) $o e& + e %& $ e b/(%&e(( om+&/ +c$/r%& +&) (e--%& %&)/($r%+- c em%c+-(, (o- e&$(, +&) (#ec%+--/br%c+&$(.
Accor)%& $o #e$%$%o&er, re(#o&)e&$9( #ro)/c$(, &+me- E ce--e&$ R/($Corro(%o&, Co&&ec$or Gre+(e, E-ec$r%c !$re& $ Pro$ec$% e Co+$%& , +&)A&$%?!e%;e Com#o/&), +re %)e&$%c+- %$ %$( A&$%? r%c$%o& -/%), Co&$+Gre+(e, " % o $ro#%c Gre+(e, +&) Dr L/br%c+&$, re(#ec$% e- . Pe$%$%o&er+((e er+$e) $ +$ +) re(#o&)e&$ bee& or$ r% $ +bo/$ $ e %)e&$%c+-c +r+c$er o $ e #ro)/c$(, %$ o/-) &o$ + e #/rc +(e) $ e %$em(com#-+%&e) o . Moreo er, #e$%$%o&er +--e e) $ +$ e& $ e #/r#or$e) r+/)+( )%(co ere), + co& ere&ce +( e-) be$ ee& #e$%$%o&er +&) re(#o&)e&$o& 13 F+&/+r 2000, ereb $ e #+r$%e( + ree) $ +$ re(#o&)e&$ o/-)re$/r& $o #e$%$%o&er $ e +mo/&$ %$ #re %o/(- #+%). o e er, #e$%$%o&er +((/r#r%(e) e& %$ rece% e) + -e$$er rom $ e re(#o&)e&$, )em+&)%&
#+ me&$ o $ e +mo/&$ o P44 ,8 4. 4, %c -+$er bec+me $ e (/b<ec$ ore(#o&)e&$9( Com#-+%&$ or Co--ec$%o& o + !/m o Mo&e + +%&($
#e$%$%o&er.D/r%& $ e #e&)e&c o $ e $r%+-, #e$%$%o&er %-e) + Mo$%o& $o Com#e-10
re(#o&)e&$ $o % e + )e$+%-e) -%($ o $ e %& re)%e&$( +&) c em%c+-com#o&e&$( o $ e o--o %& #ro)/c$(, $o %$6 + Co&$+c$ Gre+(e +&)Co&&ec$or Gre+(e: b " % o $ro#%c Gre+(e +&) D%?E-ec$r%c !$re& $
Pro$ec$% e Co+$%& : +&) c Dr L/br%c+&$ +&) A&$%?!e%;e Com#o/&).11 I$+##e+r( $ +$ #e$%$%o&er +) e+r-%er re /e($e) $ e P %-%##%&e I&($%$/$e o P/re+&) A##-%e) C em%($r PIPAC or $ e -+$$er $o co&)/c$ + com#+r%(o& ore(#o&)e&$9( oo)(.
@@@@@@@@@@@@@@@
10 Id ., +$ ##. 2 1?2 4.
11 Id ., +$ ##. 2 1?2 2.225
VOL. 540, DECEMBER 13, 2007225
Air Philippines Corporation vs. Pennswell, Inc.
O& 15 M+rc 2004, $ e R"C re&)ere) +& Or)er r+&$%& $ e #e$%$%o&er9(mo$%o&. I$ )%(#o(e), $ /(6
=" e Co/r$ )%rec$( ere%& re(#o&)e&$ Pe&&( e--, I&c. $o % e ere%& #e$%$%o&er A%rP %-%##%&e( Cor#or+$%o& , + )e$+%-e) -%($ o $ e %& re)%e&$( or c em%c+- com#o&e&$(o $ e o--o %& c em%c+- #ro)/c$(6
1. +.Co&$+c$ Gre+(e $o be com#+re) %$ Co&&ec$or Gre+(e:
2. b." % o $ro#%c Gre+(e $o be com#+re) %$ D%E-ec$r%c !$re& $ Pro$ec$% e
Co+$%& : +&)3. c.
Dr L/br%c+&$ $o be com#+re) %$ A&$%?!e%;e Com#o/&) .Re(#o&)e&$ Pe&&( e--, I&c. %( % e& % $ee& 15 )+ ( rom rece%#$ o $ %( Or)er
$o (/bm%$ $o #e$%$%o&er A%r P %-%##%&e( Cor#or+$%o& $ e c em%c+-com#o&e&$( o +--$ e +bo e?me&$%o&e) #ro)/c$( or c em%c+- com#+r%(o& +&+- (%(.>12
Re(#o&)e&$ (o/ $ reco&(%)er+$%o& o $ e ore o%& Or)er, co&$e&)%& $ +$%$ c+&&o$ be com#e--e) $o )%(c-o(e $ e c em%c+- com#o&e&$( (o/ $
bec+/(e $ e m+$$er %( co& %)e&$%+-. I$ +r /e) $ +$ +$ #e$%$%o&ere&)e+ ore) $o %& /%re /#o& co&($%$/$e) + $r+)e (ecre$ %c re(#o&)e&$c+&&o$ be orce) $o )% /- e. Re(#o&)e&$ m+%&$+%&e) $ +$ %$( #ro)/c$( +re(#ec%+-%;e) -/br%c+&$(, +&) % $ e%r com#o&e&$( ere re e+-e), %$( b/(%&e((com#e$%$or( m+ e+(%- %m%$+$e +&) m+r e$ $ e (+me $ #e( o #ro)/c$(, %&%o-+$%o& o %$( #ro#r%e$+r r% $( +&) $o %$( (er%o/( )+m+ e +&) #re</)%ce.
" e R"C + e cre)e&ce $o re(#o&)e&$9( re+(o&%& , +&) re er(e) %$(e- .I$ %((/e) +& Or)er )+$e) 30 F/&e 2004, %&)%& $ +$ $ e c em%c+-com#o&e&$( +re re(#o&)e&$9( $r+)e (ecre$( +&) +re #r% %-e e) %& c +r+c$er.
A priori , %$ r+$%o&+-%;e)6=" e !/#reme Co/r$ e-) %& $ e c+(e o Chave4 vs. Presidential Commission onood overnment , 2 !CRA 744, #. 7 4, $ +$ =$ e )r+ $er( o $ e Co&($%$/$%o& +-(o/&e /% oc+-- + %rme) $ +$ +(%)e
@@@@@@@@@@@@@@@
12 Id ., +$ #. 300.226
22! PREME CO R" REPOR"! ANNO"A"ED Air Philippines Corporation vs. Pennswell, Inc.
rom &+$%o&+- (ec/r%$ m+$$er( +&) %&$e--% e&ce %& orm+$%o&, $r+)e or %&)/($r%+- (ecre#/r(/+&$ $o $ e I&$e--ec$/+- Pro#er$ Co)e +&) o$ er re-+$e) -+ ( +( e-- +( b+& %&
$r+&(+c$%o&( #/r(/+&$ $o $ e !ecrec o B+& De#o(%$ Ac$ +re +-(o e em#$e) romcom#/-(or )%(c-o(/re.>
"r+)e (ecre$( m+ &o$ be $ e (/b<ec$ o com#/-(or )%(c-o(/re. B re+(o& o$ e%r co& %)e&$%+- +&) #r% %-e e) c +r+c$er, %& re)%e&$( or c em%c+- com#o&e&$( o$ e #ro)/c$( or)ere) b $ %( Co/r$ $o be )%(c-o(e) co&($%$/$e $r+)e (ecre$( -e($ ere%&re(#o&)e&$ o/-) e e&$/+-- be e #o(e) $o /& +rr+&$e) b/(%&e(( com#e$%$%o& %$o$ er( o m+ %m%$+$e +&) m+r e$ $ e (+me %&)( o #ro)/c$( %& %o-+$%o& ore(#o&)e&$9( #ro#r%e$+r r% $(. Be%& #r% %-e e), $ e )e$+%-e) -%($ o %& re)%e&$( orc em%c+- com#o&e&$( m+ &o$ be $ e (/b<ec$ o mo)e o )%(co er /&)er R/-e 27,!ec$%o& 1 o $ e R/-e( o Co /r$, %c e #re((- m+ e( #r% %-e e) %& orm+$%o& +&e ce#$%o& rom %$( co er+ e.>13 A--e %& r+ e +b/(e o )%(cre$%o& o& $ e #+r$ o $ e R"C, #e$%$%o&er %-e)+ Pe$%$%o& orCertiorari /&)er R/-e 5 o $ e R/-e( o Co/r$ %$ $ eCo/r$ o A##e+-(, %c )e&%e) $ e Pe$%$%o& +&) + %rme) $ e Or)er )+$e)30 F/&e 2004 o $ e R"C.
" e Co/r$ o A##e+-( r/-e) $ +$ $o com#e- re(#o&)e&$ $o re e+- %& )e$+%-$ e -%($ o %& re)%e&$( o %$( -/br%c+&$( %( $o )%(re +r) re(#o&)e&$9( r% $(o er %$( $r+)e (ecre$(. I$ +( c+$e or%c+- %& )ec-+r%& $ +$ $ e c em%c+-orm/-+$%o& o re?(#o&)e&$9( #ro)/c$( +&) $ e%r %& re)%e&$( +re embr+ce)%$ %& $ e me+&%& o =$r+)e (ecre$(.> I& )%(+--o %& $ e )%(c-o(/re, $ eCo/r$ o A##e+-( e #o/&)e), $ /(6
=" e !/#reme Co/r$ %& arcia v. Board of Investments 177 !CRA 374 1 8 e-)$ +$ $r+)e (ecre$( +&) co& %)e&$%+-, commerc%+- +&) %&+&c%+- %& orm+$%o& +re e em#rom #/b-%c (cr/$%& . " %( %( re%$er+$e) %&Chave4 v. Presidential Commission onood overnment 2 !CRA 744 1 8 ere $ e !/#reme Co/r$ e&/mer+$e) $ e%&)( o %& orm+$%o& +&) $r+&(+c$%o&( $ +$ +re reco &%;e) +(
@@@@@@@@@@@@@@@
13 Id ., +$ ##. 313?314.227
VOL. 540, DECEMBER 13, 2007227
Air Philippines Corporation vs. Pennswell, Inc.
re($r%c$%o&( o& or #r% %-e e( + +%&($ com#/-(or )%(c-o(/re. " ere, $ e !/#reme Co/r$e #-%c%$- ($+$e) $ +$6
=" e )r+ $er( o $ e Co&($%$/$%o& +-(o /&e /% oc+-- + %rme) $ +$, +(%)e rom&+$%o&+- (ec/r%$ m+$$er( +&) %&$e--% e&ce %& orm+$%o&,trade or industrial secrets
orm/-+(, m+r e$%& ($r+$e %e( +&) o$ er co& %)e&$%+- #ro r+m( +&) %& orm+$%o&+ +%&($ $ e #/b-%c. O$ er %(e, (/c %& orm+$%o& c+& be %--e +-- +&) /& +%r- /$%-%;e)
b b/(%&e(( com#e$%$or( o, $ ro/ $ e%r +cce(( $o re(#o&)e&$ Pe&&( e--9(
b/(%&e(( (ecre$(, m+ /(e $ e (+me or $ e%r o & #r% +$e +%& +&) $o $ e %rre#+r+b-e #re</)%ce o $ e -+$$er.
I& $ e c+(e be ore (, $ e +--e e) $r+)e (ecre$( + e + +c$/+- b+(%(, i.e ., %$
com#r%(e( o $ e %& re)%e&$( +&) orm/-+$%o& o re(#o&)e&$ Pe&&( e--9( -/br%c+&$ #ro)/c$( %c +re /& &o & $o $ e #/b-%c +&) #ec/-%+r o&- $o Pe&&( e--.
A-- $o-), 'e %&) &o r+ e +b/(e o )%(cre$%o& +mo/&$%& $o -+c or e ce(( o </r%()%c$%o& o& $ e #+r$ o #/b-%c re(#o&)e&$ F/) e %& %&)%& $ +$ $ e )e$+%-e) -%($ o
%& re)%e&$( or com#o(%$%o& o $ e228
228! PREME CO R" REPOR"! ANNO"A"ED Air Philippines Corporation vs. Pennswell, Inc.
Pe$%$%o&er9( Mo$%o& or Reco&(%)er+$%o& +( )e&%e). & %e-)%& , #e$%$%o& bro/ $ $ e %&($+&$ Pe$%$%o& be ore /(, o& $ e (o-e %((/e o 6' E" ER " E CO R" O APPEAL! R LED IN ACCORDANCE 'I"PREVAILING LA'! AND F RI!PR DENCE ' EN I" P ELD " ER LING O " E "RIAL CO R" " A" " E C EMICAL COMPONEN"! ORINGREDIEN"! O RE!PONDEN"9! PROD C"! ARE "RADE !ECRE"! ORIND !" R IAL !ECRE"! " A" ARE NO" ! BFEC" "O COMP L!OR DI!?CLO! RE. 15 Pe$%$%o&er (ee ( $o co& %&ce $ %( Co/r$ $ +$ %$ +( + r% $ $o ob$+%& $ ec em%c+- com#o(%$%o& +&) %& re)%e&$( o re(#o&)e&$9( #ro)/c$( $o co&)/c$+ com#+r+$% e +&+- (%( o %$( #ro)/c$(. Pe$%$%o&er +((+%-( $ e co&c-/(%o&re+c e) b $ e Co/r$ o A##e+-( $ +$ $ e m+$$er( +re $r+)e (ecre$( %c+re #ro$ec$e) b -+ +&) be o&) #/b-%c (cr/$%& . Re- %& o& !ec$%o& 1,R/-e 27 o $ e R/-e( o Co/r$, #e$%$%o&er +r /e( $ +$ $ e /(e o mo)e( o)%(co er o#er+$e( %$ )e(%r+b-e -e %b%-%$ /&)er $ e )%(cre$%o&+rco&$ro- o $ e $r%+- co/r$. /r$ ermore, #e$%$%o&er #o(%$( $ +$ %$( re /e($ %(&o$ )o&e %& b+) +%$ or %& +& m+&&er +( $o +&&o , emb+rr+((, or o##re((re(#o&)e&$.
A $r+)e (ecre$ %( )e %&e) +( + #-+& or #roce((, $oo-, mec +&%(m orcom#o/&) &o & o&- $o %$( o &er +&) $ o(e o %( em#-o ee( $o om %$%( &ece((+r $o co& %)e %$.1 " e )e %&%$%o& +-(o e $e&)( $o + (ecre$ orm/-+
2. 2$ e e $e&$ $o %c $ e %& orm+$%o& %( &o & b em#-o ee( +&)
o$ er( %& o- e) %& $ e b/(%&e((:3. 3
$ e e $e&$ o me+(/re( $+ e& b $ e em#-o er $o /+r) $ e (ecrec o$ e %& orm+$%o&:
4. 4$ e +-/e o $ e %& orm+$%o& $o $ e em#-o er +&) $o com#e$%$or(:
5. 5$ e +mo/&$ o e or$ or mo&e e #e&)e) b $ e com#+& %&
)e e-o#%& $ e %& orm+$%o&: +&).
$ e e $e&$ $o %c $ e %& orm+$%o& co/-) be e+(%- or re+)%-ob$+%&e) $ ro/ +& %&)e#e&)e&$ (o/rce.22
I& Cocol an d %evelopment Corporation v. &ational La!or 'elationsCommissi on,23 $ e %((/e +( $ e -e +-%$ o +& em#-o ee9( $erm%&+$%o& o&$ e ro/&) o /&+/$ or%;e) )%(c-o(/re o $r+)e (ecre$(. " e Co/r$ -+%))o & $ e r/-e $ +$ +& )e$erm%&+$%o& b m+&+ eme&$ +( $o $ e co& %)e&$%+-&+$/re o $ec &o-o %e(, #roce((e(, orm/-+e or o$ er (o?c+--e) $r+)e (ecre$(m/($ + e + (/b($+&$%+- +c$/+- b+(%( %c c+& #+(( </)%c%+- (cr/$%& . " eCo/r$ re<ec$e) $ e em#-o er9( &+ e) co&$e&$%o& $ +$ %$( o & )e$erm%&+$%o&
+( $o +$ co&($%$/$e( + $r+)e (ecre$ ( o/-) be b%&)%& +&) co&c-/(% e /#o&$ e NLRC. A( + caveat , $ e Co/r$ (+%) $ +$ $o r/-e o$ er %(e o/-) be $o
m+ +rb%$r+r%- )%(m%(( +& em#-o ee o& $ e #re$e $ $ +$ $ e -+$$er (ome o)%(c-o(e) + $r+)e (ecre$, e e& % %& +c$ $ ere be &o&e +$ +-- $o (#e+ o .24 e&ce, %& Cocoland , $ e #+r+me$er( %& $ e )e$erm%&+$%o& o $r+)e (ecre$(ere (e$ $o be (/c substantial factual basis that can withstand judicial
scrutiny ." e c em%c+- com#o(%$%o&, orm/-+$%o&, +&) %& re)%e&$( o
re(#o&)e&$9( (#ec%+- -/br%c+&$( +re $r+)e (ecre$( %$ %& $ e co&$em#-+$%o&o $ e -+ . Re(#o&)e&$ +( e($+b-%( e) $o e& + e %& $ e b/(%&e(( oe&er+- m+&/ +c$/r%& +&) (e--%& o , +&) $o )e+- %&, )%($r%b/$e, (e-- oro$ er %(e )%(#o(e o oo)(, +re(, merc +&)%(e, #ro)/c$(, %&c-/)%& b/$&o$ -%m%$e) $o %&)/($r%+- c em%c+-(, (o- e&$(, -/br%c+&$(, +c%)(, +- +-%e(,(+-$(, #+%&$(, o%-(, +r&%( e(, co-or(, #% me&$( +&) (%m%-+r #re#+r+$%o&(,
+mo& o$ er(. I$ %( /&m%($+ +b-e $o o/r m%&)( $ +$ $ e m+&/ +c$/re +&) #ro)/c$%o& o re(#o&)e&$9( #ro)/c$( #rocee) rom + orm/-+$%o& o +(ecre$ -%($ o %& re)%e&$(. I& $ e cre+$%o& o %$( -/br%c+&$(, re(#o&)e&$e #e&)e) e or$(, ( %--(, re(e+rc , +&) re(o/rce(. ' +$ %$ +) +c %e e) b%r$/e o %$( %& e($me&$( m+ &o$ be re($e) rom re(#o&)e&$ o& $ e mere
#re$e $ $ +$ %$ %( &ece((+r or #e$%$%o&er9( )e e&(e + +%&($ + co--ec$%o& or +(/m o mo&e . B +&) -+r e, $ e +-/e o $ e %& orm+$%o& $o re(#o&)e&$ %(cr ($+- c-e+r. " e %& re)%e&$( co&($%$/$e $ e er +br%c o re(#o&)e&$9(
#ro)/c$%o& +&) b/(%&e((. No )o/b$, $ e %& orm+$%o& %( +-(o +-/+b-e $ore(#o&)e&$9( com#e$%$or(. "o com#e- %$( )%(c-o(/re %( $o cr%##-ere(#o&)e&$9( b/(%&e((, +&) $o #-+ce %$ +$ +& /&)/e )%(+) +&$+ e. I $ ec em%c+- com#o(%$%o& o re(#o&)e&$9( -/br%c+&$( +re o#e&e) $o #/b-%c(cr/$%& , %$ %-- ($+&) $o -o(e $ e b+c bo&e o& %c %$( b/(%&e(( %(o/&)e). " %( o/-) re(/-$ %& &o$ %& -e(( $ +& $ e #rob+b-e )em%(e ore(#o&)e&$9( b/(%&e((. Re(#o&)e&$9( #ro#r%e$+r %&$ere($ o er $ e%& re)%e&$( %c %$ +) )e e-o#e) +&) e #e&)e) mo&e +&) e or$ o& %(
%&co&$ro er$%b-e. O/r co&c-/(%o& %( $ +$ $ e )e$+%-e) %& re)%e&$( (o/ $ $o be re e+-e) + e + commerc%+- @@@@@@@@@@@@@@@
+-/e $o re(#o&)e&$. No$ o&- )o e +c &o -e) e $ e +c$ $ +$ $ e%& orm+$%o& r+&$( %$ + com#e$%$% e +) +&$+ e: e +-(o %&) $ +$ $ ere %(c-e+r- + -+r%& %&$e&$ o& $ e #+r$ o re(#o&)e&$ $o ee# $ e %& orm+$%o&co& %)e&$%+- +&) &o$ + +%-+b-e $o $ e #r %& #/b-%c.
'e &o $+ e + -oo +$ !ec$%o& 1, R/-e 27 o $ e R/-e( o Co/r$, %c #erm%$( #+r$%e( $o %&(#ec$ )oc/me&$( or $ %& ( /#o& + ( o %& o oo)c+/(e be ore $ e co/r$ %& %c +& +c$%o& %( #e&)%& . I$( e&$%re #ro %(%o&re+)(6=!EC"ION 1. (otion for production or inspection order. #o& mo$%o& o +& #+r$( o %& oo) c+/(e $ ere ore, $ e co/r$ %& %c +& +c$%o& %( #e&)%& m+ + or)er+& #+r$ $o #ro)/ce +&) #erm%$ $ e %&(#ec$%o& +&) co# %& or # o$o r+# %& , b oro& be +- o $ e mo %& #+r$ , o +& )e(% &+$e) )oc/me&$(, #+#er(, boo (, +cco/&$(,
#o((e((%o&, c/($o) or co&$ro-: or b or)er +& #+r$ $o #erm%$ e&$r /#o& )e(% &+$e)-+&) or o$ er #ro#er$ %& %( #o((e((%o& or co&$ro- or $ e #/r#o(e o %&(#ec$%& ,me+(/r%& , (/r e %& , or # o$o r+# %& $ e #ro#er$ or +& )e(% &+$e) re-e +&$ob<ec$ or o#er+$%o& $ ereo&. " e or)er ( +-- (#ec% $ e $%me, #-+ce +&) m+&&er om+ %& $ e %&(#ec$%o& +&) $+ %& co#%e( +&) # o$o r+# (, +&) m+ #re(cr%be (/c$erm( +&) co&)%$%o&( +( +re </($.>
A more $ +& c/r(or -+&ce +$ $ e +bo e $e $ o/-) ( o $ +$ $ e #ro)/c$%o& or %&(#ec$%o& o )oc/me&$( or $ %& ( +( + mo)e o )%(co er(+&c$%o&e) b $ e R/-e( o Co/r$ m+ be + +%-e) o b +& #+r$ /#o& +( o %& o oo) c+/(e $ ere or be ore $ e co/r$ %& %c +& +c$%o& %(
#e&)%& . " e co/r$ m+ or)er +& #+r$ 6 + $o #ro)/ce +&) #erm%$ $ e%&(#ec$%o& +&) co# %& or # o$o r+# %& o +& )e(% &+$e) )oc/me&$(,
#+#er(, boo (, +cco/&$(, -e$$er(, # o$o r+# (, ob<ec$( or $+& %b-e $ %& (,%c +re not privileged :25 %c co&($%$/$e or co&?
@@@@@@@@@@@@@@@
25 =Pr% %-e e) comm/&%c+$%o&(> +re comm/&%c+$%o&( %c occ/r %& + co&$e $ o -e +- or
o$ er reco &%;e) #ro e((%o&+- co& %)e&$%+-%$ . " e +c$ $ +$ + cer$+%& comm/&%c+$%o& %(
$+%& e %)e&ce m+$er%+- $o +& m+$$er %& o- e) %& $ e +c$%o&: +&) %c +re%& %( #o((e((%o&, c/($o) or co&$ro-: or b $o #erm%$ e&$r /#o& )e(% &+$e)-+&) or o$ er #ro#er$ %& %( #o((e((%o& or co&$ro- or $ e #/r#o(e o%&(#ec$%& , me+(/r%& , (/r e %& , or # o$o r+# %& $ e #ro#er$ or +&
#+$%e&$: ) comm/&%c+$%o& be$ ee& #r%e($ +&) #e&%$e&$: +&) e #/b-%co %cer( +&) #/b-%c %&$ere($.T here are however other privilegedmatters that are not mentioned by !ule "#$. Amo& $ em +re $ eo--o %& 6 + e)%$or( m+ &o$ be com#e--e) $o )%(c-o(e $ e (o/rce o
#/b-%( e) &e (: b o$er( m+ &o$ be com#e--e) $o )%(c-o(e or om$ e o$e): c trade secre ts : ) %& orm+$%o& co&$+%&e) %& $+ ce&(/(re$/r&(: +&) ) b+& )e#o(%$(. 30
@@@@@@@@@@@@@@@
1. +
" e /(b+&) or $ e % e, )/r%& or + $er $ e m+rr%+ e c+&&o$ be e +m%&e) %$ o/$
$ e co&(e&$ o $ e o$ er +( $o +& comm/&%c+$%o& rece% e) %& co& %)e&ce b o&e rom
$ e o$ er )/r%& $ e m+rr%+ e e ce#$ %& + c% %- c+(e b o&e + +%&($ $ e o$ er, or %& +
cr%m%&+- c+(e or + cr%me comm%$$e) b o&e + +%&($ $ e o$ er or $ e -+$$er9( )%rec$)e(ce&)+&$( or +(ce&)+&$(:
2. b
A& +$$or&e c+&&o$, %$ o/$ $ e co&(e&$ o %( c-%e&$, be e +m%&e) +( $o +&
comm/&%c+$%o& m+)e b $ e c-%e&$ $o %m, or %( +) %ce % e& $ ereo& %& $ e co/r(e
o , or %$ + %e $o, #ro e((%o&+- em#-o me&$, &or c+& +& +$$or&e 9( (ecre$+r ,
($e&o r+# er, or c-er be e +m%&e), %$ o/$ $ e co&(e&$ o $ e c-%e&$ +&) %(
em#-o er, co&cer&%& +& +c$ $ e &o -e) e o %c +( bee& +c /%re) %& (/c
c+#+c%$ :3. c
A #er(o& +/$ or%;e) $o #r+c$%ce me)%c%&e, (/r er or ob($e$r%c( c+&&o$ %& + c% %- c+(e,
%$ o/$ $ e co&(e&$ o $ e #+$%e&$, be e +m%&e) +( $o +& +) %ce or $re+$me&$ % e&
b %m or +& %& orm+$%o& %c e m+ + e +c /%re) %& +$$e&)%& (/c #+$%e&$ %& +
235 Air Philippines Corporation vs. Pennswell, Inc.
'e, $ /(, r/-e + +%&($ $ e #e$%$%o&er. 'e + %rm $ e r/-%& o $ e Co/r$ oA##e+-( %c /# e-) $ e %&)%& o $ e R"C $ +$ $ ere %( (/b($+&$%+- b+(%(or re(#o&)e&$ $o (ee #ro$ec$%o& o $ e -+ or %$( #ro#r%e$+r r% $( o er$ e )e$+%-e) c em%c+- com#o(%$%o& o %$( #ro)/c$(.
" +$ $r+)e (ecre$( +re o + #r% %-e e) &+$/re %( be o&) /%bb-e. " e #ro$ec$%o& $ +$ $ %( </r%()%c$%o& + or)( $o $r+)e (ecre$( %( e %)e&$ %& o/r-+ (. " e I&$er%m R/-e( o Proce)/re o& Go er&me&$ Re +b%-%$+$%o&,e ec$% e 15 December 2000, %c +##-%e( $o6 1 #e$%$%o&( orre +b%-%$+$%o& %-e) b cor#or+$%o&(, #+r$&er( %#(, +&) +((oc%+$%o&( #/r(/+&$$o Pre(%)e&$%+- Decree No. 02?A,31 +( +me&)e): +&) 2 c+(e( orre +b%-%$+$%o& $r+&( erre) rom $ e !ec/r%$%e( +&) E c +& e Comm%((%o& $o$ e R"C( #/r(/+&$ $o Re#/b-%c Ac$ No. 87 , o$ er %(e &o & +( " e!ec/r%$%e( Re /-+$%o& Co)e, e #re((- #ro %)e( $ +$ $ e co/r$ m+ %((/e +&or)er $o protect trade secrets or other confidential researchdevelopment or commercial information be-o& %& $o $ e )eb$or. 32 Moreo er, $ e !ec/r%$%e( Re /-+$%o& Co)e %( e #-%c%$ $ +$ $ e !ec/r%$%e(+&) E c +& e Comm%((%o& %(not re%uired or authori&ed to re%uire therevelation of trade secrets or processes in any application report ordocument filed with the 'ommission .33 " %( co& %)e&$%+-%$ %( m+)e
#+r+mo/&$ +( + -%m%$+$%o& $o $ e r% $ o +& member o $ e e&er+- #/b-%c,/#o& re /e($, $o + e +cce(( $o +-- %& orm+$%o& %-e) %$ $ eComm%((%o&.34
@@@@@@@@@@ @@@ @@
31 !EC Reor +&%;+$%o& Ac$.
32 !ec$%o& 4, R/-e 3 o $ e I&$er%m R/-e( o Proce)/re o& Go er&me&$ Re +b%-%$+$%o&.
33 !ec$%o& .2 o $ e !ec/r%$%e( Re /-+$%o& Co)e o 2000 #ro %)e( $ +$, = .2. No$ %&
%& $ %( Co)e ( +-- be co&($r/e) $o re /%re, or $o +/$ or%;e $ e Comm%((%o& $o re /%re, $ e
re e+-%& o $r+)e (ecre$( or #roce((e( %& +& +##-%c+$%o&, re#or$, or )oc/me&$ %-e) %$ $ e
34 !EC. . 'evelation of Information >iled with the Commission . .1. A--
%& orm+$%o& %-e) %$ $ e Comm%((%o& %& com#-%?236
23! PREME CO R" REPOR"! ANNO"A"ED Air Philippines Corporation vs. Pennswell, Inc.
/r$ ermore, $ e Re %(e) Pe&+- Co)e e&)o ( + c-o+ o #ro$ec$%o& $o$r+)e (ecre$( /&)er $ e o--o %& +r$%c-e(6=Ar$. 2 1. 'evealin" secrets with a!use of office. " e #e&+-$ o arresto mayor +&)+ %&e &o$ e cee)%& 500 #e(o( ( +-- be %m#o(e) /#o& +& m+&+ er, em#-o ee or(er +&$ o, %& (/c c+#+c%$ , shall learn the secrets of his principal or master and
shall reveal such secrets. Ar$. 2 2. 'evelation of industrial secrets. " e #e&+-$ o prision correccional %&
%$( m%&%m/m +&) me)%/m #er%o)( +&) + %&e &o$ e cee)%& 500 #e(o( ( +-- be%m#o(e) upon the person in char"e, employee or workman of any manufacturin" orindustrial esta!lishment who, to the pre$udice of the owner thereof, shall reveal the
secrets of the industry of the latter. >!%m%-+r- , Re#/b-%c Ac$ No. 8424, o$ er %(e &o & +( $ e N+$%o&+-I&$er&+- Re e&/e Co)e o 1 7, +( + re($r%c$% e #ro %(%o& o& $r+)e (ecre$(,
#e&+-%;%& $ e re e-+$%o& $ ereo b %&$er&+- re e&/e o %cer( or em#-o ee(,$o %$6=!EC"ION 278. Procurin" Hnlawful %ivul"ence of Trade Secrets . A& #er(o&o c+/(e( or #roc/re( +& o %cer or em#-o ee o $ e B/re+/ o I&$er&+- Re e&/e to
divul"e any confidential information re"ardin" the !usiness, income or inheritance ofany ta payer, knowled"e of which was ac+uired !y him in the dischar"e of hisofficial duties , +&) %c %$ %( /&-+ /- or %m $o re e+-, +&) +& #er(o& o
#/b-%( e( or #r%&$( %& +& m+&&er +$e er, &o$ #ro %)e) b -+ , +& %&come, #ro %$,-o(( or e #e&)%$/re +##e+r%& %& +& %&come $+ re$/r&, ( +-- be #/&%( e) b + %&e o&o$ more $ +& $ o $ o/(+&) #e(o( P2,000 , or (/ er %m#r%(o&me&$ o &o$ -e(( $ +&(% mo&$ ( &or more $ +& % e 5 e+r(, or bo$ .>
Re#/b-%c Ac$ No. , or $ e "o %c !/b($+&ce( +&) +;+r)o/( +&) N/c-e+r '+($e( Co&$ro- Ac$ o 1 0, e&+c$e) $o %m#-eme&$ $ e #o-%c o$ e ($+$e $o re /-+$e, re($r%c$ or #ro?
@@@@@@@@@@@@@@@
8/10/2019 Air Philippines Corporation vs. Pennswell, Inc.
+&ce %$ $ e re /%reme&$( o $ %( Co)e ( +-- be m+)e + +%-+b-e $o +& member o $ e
e&er+- #/b-%c, /#o& re /e($, %& $ e #rem%(e( +&) )/r%& re /-+r o %ce o/r( o $ e
Comm%((%o&, e ce#$ +( (e$ or$ %& $ %( !ec$%o&.237
VOL. 540, DECEMBER 13, 2007
237 Air Philippines Corporation vs. Pennswell, Inc.
%b%$ $ e %m#or$+$%o&, m+&/ +c$/re, #roce((%& , (+-e, )%($r%b/$%o&, /(e +&))%(#o(+- o c em%c+- (/b($+&ce( +&) m% $/re( $ +$ #re(e&$ /&re+(o&+b-er%( +&) or %&</r $o e+-$ or $ e e& %ro&me&$, +-(o co&$+%&( + #ro %(%o&that limits the right of the public to have access to records reports orinformation concerning chemical substances and mi(tures includingsafety data submitted and data on emission or discharge into theenvironment if the matter is confidential such that it would divulgetrade secrets production or sales figures) or methods production orprocesses uni%ue to such manufacturer processor or distributor) orwould otherwise tend to affect adversely th e competitive position ofsuch manufacturer processor or distributor. 35
35 !ec$%o& 12. Pu!lic Access to 'ecords, 'eports or &otification . " e #/b-%c ( +--
+ e +cce(( $o recor)(, re#or$(, or %& orm+$%o& co&cer&%& c em%c+- (/b($+&ce( +&) m% $/re(
%&c-/)%& (+ e$ )+$+ (/bm%$$e), )+$+ o& em%((%o& or )%(c +r e %&$o $ e e& %ro&me&$, +&)
(/c )oc/me&$( ( +-- be + +%-+b-e or %&(#ec$%o& or re#ro)/c$%o& )/r%& &orm+- b/(%&e((
o/r( e ce#$ $ +$ $ e De#+r$me&$ o E& %ro&me&$ +&) N+$/r+- Re(o/rce( m+ co&(%)er +
recor), re#or$ or %& orm+$%o& or #+r$%c/-+r #or$%o&( $ ereo co& %)e&$%+- +&) m+ &o$ be
m+)e #/b-%c e& (/c o/-) )% /- e $r+)e (ecre$(, #ro)/c$%o& or (+-e( % /re( or me$ o)(,
#ro)/c$%o& or #roce((e( /&% /e $o (/c m+&/ +c$/rer, #roce((or or )%($r%b/$or, or o/-)o$ er %(e $e&) $o + ec$ +) er(e- $ e com#e$%$% e #o(%$%o& o (/c m+&/ +c$/rer, #roce((or
or )%($r%b/$or. " e De#+r$me&$ o E& %ro&me&$ +&) N+$/r+- Re(o/rce(, o e er, m+
re-e+(e %& orm+$%o& (/b<ec$ $o c-+%m o co& %)e&$%+-%$ $o + me)%c+- re(e+rc or (c%e&$%
%&($%$/$%o& ere $ e %& orm+$%o& %( &ee)e) or $ e #/r#o(e o me)%c+- )%+ &o(%( or
$re+$me&$ o + #er(o& e #o(e) $o $ e c em%c+- (/b($+&ce or m% $/re.
3 (irpuri v. Court of Appeals , 37 P %-. 28: 318 !CRA 51 1 .
embo)%e) %& $ e Co&($%$/$%o&.40 'e (+%) $ +$ $ e )r+ $er( o $ eCo&($%$/$%o& +-(o /&e /% oc+-- + %rme) $ +$, +(%)e rom &+$%o&+- (ec/r%$m+$$er( +&) %&$e--% e&ce %& orm+$%o&, $r+)e or %&)/($r%+- (ecre$( #/r(/+&$$o $ e I&$e--ec$/+- Pro#er$ Co)e +&) o $ er re-+$e) -+ ( +( e-- +( b+& %&$r+&(+c$%o&( #/r(/+&$ $o $ e !ecrec o B+& De#o(%$( Ac$ , +re +-(oe em#$e) rom com#/-(or )%(c-o(/re. 41
!% &% %c+&$- , o/r c+(e( o& -+bor +re re#-e$e %$ e +m#-e( o + #ro$ec$%o&%($ ($+&ce $o +r)( $ e $r+)e (ecre$( o em#-o er(. or %&($+&ce,$ %( Co/r$ /# e-) $ e +-%)%$ o $ e #o-%c o + # +rm+ce/$%c+- com#+&
$o be re+) +&) /&)er($oo) b $ e or)%&+r %&)% %)/+- /&)er c/($om+r co&)%$%o&( o
#/rc +(e or /(e.
" e +bo e re /%reme&$( ( +-- orm +& %&$e r+- #+r$ o $ e -+be- %$ o/$ )+& er o be%&
er+(e) or )e$+c e) /&)er or)%&+r +&)-%& o $ e #ro)/c$.241
VOL. 540, DECEMBER 13, 2007241
Air Philippines Corporation vs. Pennswell, Inc.
)ome($%c+-- (o-), e$ er m+&/ +c$/re) -oc+-- or %m#or$e), ( +--%&)%c+$e $ e%r e&er+- m+ e or +c$% e %& re)%e&$( %& $ e%r re(#ec$% e -+be-(o #+c + %& , $ e -+ )oe( &o$ +##- $o re(#o&)e&$. Re(#o&)e&$9((#ec%+-%;e) -/br%c+&$( &+me- , Co&$+c$ Gre+(e, Co&&ec$or Gre+(e," % o $ro#%c Gre+(e, D%E-ec$r%c !$re& $ Pro$ec$% e Co+$%& , DrL/br%c+&$ +&) A&$%?!e%;e Com#o/&) +re &o$ co&(/mer #ro)/c$(.=Co&(/mer #ro)/c$(,> +( %$ %( )e %&e) %& Ar$%c-e 4 ,44 re er( $o oo)(,(er %ce( +&) cre)%$(, )eb$( or ob-% +$%o&( %c +re #r%m+r%- or #er(o&+-,+m%- , o/(e o-) or + r%c/-$/r+- #/r#o(e(, %c ( +-- %&c-/)e, b/$ &o$ be-%m%$e) $o, oo), )r/ (, co(me$%c(, +&) )e %ce(. " %( %( &o$ $ e &+$/re ore(#o&)e&$9( #ro)/c$(. I$( #ro)/c$( +re &o$ %&$e&)e) or #er(o&+-, +m%- ,o/(e o-) or + r%c/-$/r+- #/r#o(e(. R+$ er, $ e +re or %&)/($r%+- /(e,(#ec% %c+-- or $ e /(e o +%rcr+ $ #ro#e--er( +&) e& %&e(.
Pe$%$%o&er9( +r /me&$ $ +$ Re#/b-%c Ac$ No. 8203, or $ e !#ec%+- L+o& Co/&$er e%$ Dr/ (, re /%re( $ e )%(c-o(/re o $ e +c$% e %& re)%e&$( o +)r/ %( +-(o o& +/-$ ro/&). 45 Re(#o&)e&$9( #ro)/c$( +re o/$(%)e $ e(co#e o $ e c%$e) -+ . " e ) o &o$ come %$ %& $ e #/r %e o + )r/ 4
%c , +( @@@@@@@@@@@@@@@
44 AR"ICLE 4. %efinition of Terms . or #/r#o(e( o $ %( Ac$, $ e $erm6
45 Pe$%$%o&er c%$e( $ e )e %&%$%o& o + co/&$er e%$ )r/ me)%c%&e %& Re#/b-%c Ac$ 8203
$ e !#ec%+- L+ o& Co/&$er e%$ Dr/ ( $o b/$$re(( %$( +r /me&$, (#ec% %c+-- !ec$%o& 3 b 4
$ ereo , $o %$6
+ )r/ %c co&$+%&( &o +mo/&$ o , or + )% ere&$ +c$% e %& re)%e&$, or -e(( $ +& e% $
#erce&$ 80 o $ e +c$% e %& re)%e&$ %$ #/r#or$( $o #o((e((, +( )%($%& /%( e) rom +&
+)/-$er+$e) )r/ %&c-/)%& re)/c$%o& or -o(( or e %c+c )/e $o e #%r+$%o&.
4 !EC"ION 3. %efinition of Terms or #/r#o(e( o $ %( Ac$, $ e $erm(6242
242! PREME CO R" REPOR"! ANNO"A"ED Air Philippines Corporation vs. Pennswell, Inc.
)e %&e) $ ere%&, re er( $o +& c em%c+- com#o/&) or b%o-o %c+- (/b($+&ce,o$ er $ +& oo), $ +$ %( %&$e&)e) or /(e %& $ e $re+$me&$, #re e&$%o& or)%+ &o(%( o )%(e+(e %& m+& or +&%m+-(. A +%&, (/c +re &o$ $ ec +r+c$er%($%c( o re(#o&)e&$9( #ro)/c$(.
' +$ %( c-e+r rom $ e +c$/+- %&)%& ( o $ e R"C +&) $ e Co/r$ oA##e+-( %( $ +$ $ e c em%c+- orm/-+$%o& o re(#o&)e&$9( #ro)/c$( %( &o$&o & $o $ e e&er+- #/b-%c +&) %( /&% /e o&- $o %$. Bo$ co/r$( /&% orm-r/-e) $ +$ $ e(e %& re)%e&$( +re &o$ %$ %& $ e &o -e) e o $ e #/b-%c.!%&ce
@@@@@@@@@@@@@@@
+ Dr/ ( ( +-- re er $o +& c em%c+- com#o/&) or b%o-o %c+- (/b($+&ce, o$ er $ +& oo),
%&$e&)e) or /(e %& $ e $re+$me&$, #re e&$%o& or )%+ &o(%( o )%(e+(e %& m+& or +&%m+-(
%&c-/)%& b/$ &o$ -%m%$e) $o6
1. 1
+& +r$%c-e reco &%;e) %& $ e o %c%+- &%$e) !$+$e( P +rm+co#oe%+ N+$%o&+-
orm/-+r !P?N , o %c%+- omeo#+$ %c P +rm+co#oe%+ o $ e &%$e) !$+$e(,P %-%##%&e( N+$%o&+- Dr/ orm/-+r , Br%$%( P +rm+co#oe%+, +& N+$%o&+-
Com#e&)%/m or +& (/##-eme&$ $o +& o $ em:
2. 2
+& +r$%c-e %&$e&)e) or /(e %& $ e )%+ &o(%(, c/re m%$% +$%o&, $re+$me&$, or #re e&$%o
o )%(e+(e %& m+& or +&%m+-(:
8/10/2019 Air Philippines Corporation vs. Pennswell, Inc.
+& +r$%c-e o$ er $ +& oo) %&$e&)e) $o + ec$ $ e ($r/c$/re or +& /&c$%o& o $ e bo)
o m+& or +&%m+-(:
4. 4
+& +r$%c-e %&$e&)e) or /(e +( + com#o&e&$ o +& +r$%c-e( (#ec% %e) %& c-+/(e( 1 ,
2 , 3 &o$ %&c-/)%& )e %ce( or $ e%r com#o&e&$(, #+r$(, or +cce((or%e(: +&)
5. 5
erb+- +&) or $r+)%$%o&+- )r/ ( %c +re +r$%c-e( o #-+&$ or +&%m+- or% %& /(e) %&
o- me)%c%&e %c +re6
. +
reco &%;e) %& $ e P %-%##%&e N+$%o&+- Dr/ orm/-+r : b %&$e&)e) or /(e %& $ e
$re+$me&$ or c/re or m%$% +$%o& o )%(e+(e ( m#$om(, %&</r or bo) )e ec$ %& m+&:
c o$ er $ +& oo), %&$e&)e) $o + ec$ $ e ($r/c$/re or +& /&c$%o& o $ e bo) o
m+&: ) %& %&%( e) or re+) ?$o?/(e )o(+ e orm: +&) e %&$e&)e) or /(e +( +
com#o&e&$ o +& o $ e +r$%c-e( (#ec% %e) %& c-+/(e( + , b , c +&) ) .243
VOL. 540, DECEMBER 13, 2007243
Air Philippines Corporation vs. Pennswell, Inc.
(/c +c$/+- %&)%& ( +re e&er+-- &o$ re %e +b-e b $ %( Co/r$, %$ %( &o$)/$ ?bo/&) $o +&+- ;e +&) e% +-- o er + +%& $ e e %)e&ce +-re+)co&(%)ere) %& $ e #rocee)%& ( be-o .47 'e &ee) &o$ )e- e %&$o $ e +c$/+-
b+(e( o (/c %&)%& ( +( /e($%o&( o +c$ +re be o&) $ e #+-e o R/-e 45o $ e R/-e( o Co/r$. +c$/+- %&)%& ( o $ e $r%+- co/r$ e& + %rme) b$ e Co/r$ o A##e+-(, +re b%&)%& +&) co&c-/(% e o& $ e !/#reme Co/r$. 48
'e )o &o$ %&) mer%$ or +##-%c+b%-%$ %& #e$%$%o&er9( %& oc+$%o&!ec$%o&124 o $ e "o %c !/b($+&ce( +&) +;+r)o/( +&) N/c-e+r '+($e(Co&$ro- Ac$ o 1 0, %c r+&$( $ e #/b-%c +cce(( $o recor)(, re#or$( or%& orm+$%o& co&cer&%& c em%c+- (/b($+&ce( +&) m% $/re(, %&c-/)%&(+ e$ )+$+ (/bm%$$e), +&) )+$+ o& em%((%o& or )%(c +r e %&$o $ e
e& %ro&me&$. T o reiterate *ection "+ 50 of said Act deems as @@@@@@@@@@@@@@@
47 Ce!allos v. Intestate Dstate of the Late Dmi"dio (ercado , G.R. No. 15585 , 28 M+
2004, 430 !CRA 323, 331.
48 >ilinvest Land, Inc. v. Court of Appeals , G.R. No. 138 80, 20 !e#$ember 2005, 470
4 !ec$%o& 12. Pu!lic Access to 'ecords, 'eports or &otification . " e #/b-%c ( +--
+ e +cce(( $o recor)(, re#or$( or %& orm+$%o& co&cer&%& c em%c+- (/b($+&ce( +&) m% $/re(
%&c-/)%& (+ e$ )+$+ (/bm%$$e), )+$+ o& em%((%o& or )%(c +r e %&$o $ e e& %ro&me&$, +&)
(/c )oc/me&$( ( +-- be + +%-+b-e or %&(#ec$%o& or re#ro)/c$%o& )/r%& &orm+- b/(%&e((
o/r( e ce#$ $ +$ $ e De#+r$me&$ o E& %ro&me&$ +&) N+$/r+- Re(o/rce( m+ co&(%)er +
recor), re#or$ or %& orm+$%o& or #+r$%c/-+r #or$%o&( $ ereo co& %)e&$%+- +&) m+ &o$ be
m+)e #/b-%c e& (/c o/-) )% /- e $r+)e (ecre$(, #ro)/c$%o& or (+-e( % /re( or me$ o)(,
#ro)/c$%o& or #roce((e( /&% /e $o (/c m+&/ +c$/rer, #roce((or or )%($r%b/$or, or o/-)
o$ er %(e $e&) $o + ec$ +) er(e- $ e com#e$%$% e #o(%$%o& o (/c m+&/ +c$/rer, #roce((or
or )%($r%b/$or. " e De#+r$me&$ o E& %ro&me&$ +&) N+$/r+- Re(o/rce(, o e er, m+
re-e+(e %& orm+$%o& (/b<ec$ $o c-+%m o co& %)e&$%+-%$ $o + me)%c+- re(e+rc or (c%e&$%
%&($%$/$%o& ere $ e %& orm+$%o& %( &ee)e) or $ e #/r#o(e o me)%c+- )%+ &o(%( or
$re+$me&$ o + #er(o& e #o(e) $o $ e c em%c+- (/b($+&ce or m% $/re. Re#/b-%c Ac$ No.
.50 Re#/b-%c Ac$ No. .
244
244! PREME CO R" REPOR"! ANNO"A"ED Air Philippines Corporation vs. Pennswell, Inc.
confidential matters which may not be made public those that woulddivulge trade secrets including production or sales figures ormethods) production or processes uni%ue to such manufacturerprocessor or distributor or would otherwise tend to affect adverselythe competitive position of such manufacturer processor ordistributor. I$ %( $r/e $ +$ /&)er $ e (+me Ac$, $ e De#+r$me&$ oE& %ro&me&$ +&) N+$/r+- Re(o/rce( m+ re-e+(e %& orm+$%o&: o e er,$ e c-e+r %m#or$ o $ e -+ %( $ +$ (+%) +/$ or%$ %( -%m%$e) b $ e r% $ $oco& %)e&$%+-%$ o $ e m+&/ +c$/rer, #roce((or or )%($r%b/$or, %c%& orm+$%o& m+ be re-e+(e) o&- $o + me)%c+- re(e+rc or (c%e&$% %c%&($%$/$%o& ere $ e %& orm+$%o& %( &ee)e) or $ e #/r#o(e o me)%c+-
)%+ &o(%( or $re+$me&$ o + #er(o& e #o(e) $o $ e c em%c+- (/b($+&ce orm% $/re. " e r% $ $o co& %)e&$%+-%$ %( reco &%;e) b (+%) Ac$ +(
#r%mor)%+-. Pe$%$%o&er +( &o$ m+)e $ e (-% $e($ +$$em#$ $o ( o $ +$ $ e(ec%rc/m($+&ce( +re + +%-%& %& $ e c+(e +$ b+r.
I&)ee), $ e #r% %-e e %( &o$ +b(o-/$e: $ e $r%+- co/r$ m+ com#e-)%(c-o(/re ere %$ %( %&)%(#e&(+b-e or )o%& </($%ce.51 'e )o &o$,o e er, %&) re+(o& $o e ce#$ re(#o&)e&$9( $r+)e (ecr e$( rom $ e
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