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RULE I – GENERAL STATEMENT

Section 1. Purpose and Coverage. – This Implementing Rules and Regulations (IRR),  herein  after  called  “IRR,”  is  promulgated   pursuant  to  Section  12  of Republic  Act  No.  10557,  otherwise  known  as  the  “Philippine  Design Competitiveness  Act of 2013” for the purpose of prescribing the necessary rules and regulations for promoting and strengthening Filipino Design.

Section 2. Construction. – All doubts in the interpretation and implementation of these rules shall be liberally construed and resolved in favor of this Act.

Section 3. Statement of Policy. – It is the declared policy of the State to:

a)   Enhance  the competitive  and innovative  quality  of Philippine  products  and design Services;

b)   Create  market-responsive  design  services,  while  advocating  for  economic and environmental sustainability;

c)     Promote an economy and society driven by design and creativity responsive to our fast-changing times and reflective of the Filipino culture and identity;

d)  Advocate the protection of intellectual property rights to these ideas and innovations.

Section 4. Objectives. – The State shall promote and strengthen the Philippine design industry to achieve the following objectives:

a)   Create integrated, forward-thinking  and long-range direction and strategy for the design industry;

b)   Provide  long-term  guidance  to promote  national  awareness  on the use of design  as  a  strategic   tool  for  economic   competitiveness   and/or  social innovation;
 
c)    Integrate  design  into  other  industries  and  aspects  of  society  in  order  to create a demand for good design, and to extend its impact economically, socially, culturally and environmentally;

d)   Incorporate   design   as   a  priority   component   in  national   planning   and development; and

e)   Ultimately, encourage  and drive innovation so that the Philippines  may use as leverage our raw materials, natural resources and creativity to stay ahead of the curve.

Section  5. Definition  of Terms  – For the purposes  of this IRR, the following terms or words and phrases shall mean or be understood as follows:

a)   Advisory Board. Shall refer to the Design Advisory Council herein referred to as the DAC under Rule IV Section 5 which shall be created to assist the DCP in the formulation and implementation of policies, and these Rules.

b)   Design. Shall refer to a way of thinking and a problem-solving process that is user-centered, collaborative, multi-disciplinary and makes ideas tangible, whether in the form of products, services or experiences.

c)     Design  Network. Shall  refer  to a supportive  system  of  sharing  design- related information and services among individuals and groups.

d)   Design   Promotion.   Shall  refer  to  promoting   awareness   regarding   the benefits of design, drive up demand for design services and put design at the heart of economic growth.

e)   Design Research. Shall refer to the process of collecting, preserving and disseminating information by whatever means, for purposes of furthering the development  of design skills and knowledge, and advancing the theory and practice of design.

f)     Intellectual  Property  Rights.  Shall  refer  to  those  rights  recognized  and protected in Republic Act No. 8293 or the “Intellectual Property Code of the Philippines,” as amended.

g)   National  Design  Policy.  Shall  refer  to  the  State’s  strategy  in  promoting design as a driving force towards a sustainable economic growth and development and a catalyst for increasing the competitiveness of the country in the global market.

h)  Policy. Refers to a principle or rule as chosen by a government or other authoritative body to direct the affairs or society towards the realization of predetermined goals or objectives.

i)     Design  Development.  Shall  refer  to  the  creation  of  design  with  new  or different characteristics  that offer new or additional  benefits. It may involve the processes such as but not limited to the following:

1)   New Design Strategy Development
2)   Idea Generation
3)   Screening and Evaluation
4)   Business Analysis
5)   Development
6)   Testing
7)   Commercialization

j)     Public-private    partnership.    Shall   refer   to   the   partnership    between government  and private entities that shall assist the DCP in the formulation and implementation of policies herein referred to as the DAC and such other functions as stated in these Rules.

k)     Stakeholders   of  DCP.  Industry  associations,   manufacturers,   designers, design academe, design students, government offices and any other beneficiaries of the services of the DCP.

Section  6.  Renaming  and  Re-engineering  PDDCP.  –  The  Product Development  and Design Center of the Philippines  (PDDCP)  is hereby reengineered  and  renamed  into  the  Design  Center  of  the  Philippines,  herein referred  to as the DCP.  It shall  be attached  to the Department  of Trade  and Industry (DTI).

For  this  purpose,  the  DCP  shall  have  the  authority  to  organize  its  current structure, to achieve greater efficiency, and economy in its operations.

Section 7. The Structure of the DCP.

a)   The DCP shall be headed by an Executive Director.

b)   The  DCP  shall  be  organized  in  accordance  with  the  new  mandates  and functions, as provided by law:

1.   Policy Making: National Design Policy

i.     Research and Dialogue
ii.     Formulation (NDP and 5-year plans)
iii.     Evaluation (Monitoring and measuring impact)

2.   Design Awareness & Culture.

i.     Design Promotion (Local and global, online and offline)
ii.     Design Integration (Intra and inter-industry)
iii.     Design Protection (Innovation and Technology Support Office)

3.   Design for Development.

i.     Design for Social Innovation (Design for Public Good)
ii.     Design for Government
iii.     Design for Sustainability

4.   Design and Innovation.

i.     Research and Development
ii.     Skills Development and Mentoring for Competitiveness
iii.     Brand of Design Excellence

5.   Design Education.

6.   International Relations.

Section 8. DCP Mandates. – The DCP is mandated to:

a)  Promote  design  as  a  creative  tool  for  improving  the  quality  and competitiveness  and branding of Filipino products in the global market; as a strategic tool of value creation for sustainable economic growth and development;  and as an innovative tool for enhancing the quality of human life.

b)   It is further mandated to:

1.   Develop and maintain a creative research and development program on product  design,  development  and  improvement  of  Philippine  products and   services,   including   those   created   by   the   small   and   medium enterprises (SMEs).

2.  Conduct continuing research on product and product packaging design trends, materials and processing technologies.

3.   Create,  develop,  promote  and  upgrade  the  design  of  all  Philippine products and services, including those created by the SMEs.

4.   Conduct seminars and workshops on product design and development.

5.   Set up design exhibitions.

6.   Publish design-related materials.

7.   Ensure protection of Filipino design ideas, products and other outputs of creative talents.

8.   Promote design education throughout  the country to meet the needs of
Philippine industries; and

9.   Promote Philippine design here and all over the world.

Section 9. Power and Functions of the DCP.

National Design Policy.

a)   Formulate the National Design Policy, herein referred to as the NDP, aligning it with the government’s economic agenda.

b)   Continuously  formulate  five (5)-year plans, that are in line with the general NDP, but reflective of the changing conditions in both the domestic and international   environments,   in  accordance   with  the  new  mandates   and functions, as provided by law.
 
c)     Coordinate, monitor and assess the implementation  of the NDP, and, when necessary, update the NDP in the light of changing market conditions in both the domestic and international environments.

To  monitor  the  efficiency   and  effectiveness   of  policies,  rules  or  other methods in policy statements or plans with the aid from design sectors and government agencies, the DCP shall:

1.   Undertake  a review of provisions  of the NDP and plans at a frequency prescribed by the Executive Director.

2.   Monitor environmental results expected from policy statements and plans to assess outcomes.

3.   Collect data and supplementary information from industry sectors.

4.   Combine council databases to include all useful existing information and feedback to policy and other plan provisions.

The  DCP  shall  be  responsible  in updating  the  NDP  with  regards  to both domestic and international market condition.

d)   Establish an evaluation system through which the results of the NDP (as well as singular projects and programs) could be assessed and improved.

NDP  evaluation  should  be  coordinated  and  prioritized  by  senior management. Critical review is the cornerstone of learning, improved performance and accountability. The guidelines for evaluation of NDP are as follows:

1.   Identify  and  describe   the  policy,  program   or  set  of  actions  to  be evaluated.

2.   Outline program objectives, targets and milestones.

3.   Describe  program  performance  to  date,  including  any  problems  and opportunities or improvement.

4.   Assess  the  impacts  and  achievements  of  the  program  (a  summative evaluation).

5.   Determine ways of improving the program (a formative evaluation).

e)   Collaborate internationally with similar design policy advisory bodies of other countries   and  gain  insights  and  investigate   on  how  successful   design practices in other countries can be transferred and adapted in the context of Filipino creative and knowledge-based  industries as well as transition to the conceptual-based economy.

f) Establish  dialogue with designers  to encourage  them to actively engage in the implementation of design policy.

g)   Provide a forum for design stakeholders  on current and emerging issues in the design profession.

Design Awareness.

h)   The DCP shall promote the design profession and the value of design.
 
i)     Build awareness of the importance of design to the public, through local and international exhibitions, conferences, competitions, publications, community and school activities and other design-related events.

j)     Promote awareness on the protection of intellectual property rights.

k)     Establish more public creative zones and environments in Metro Manila and other central hubs in different regions across the country.

Design Integration.

l)     Create networks and establish venues where all industries could interact in design dialogues and workshops, thereby promoting knowledge exchange, capability development and collaborative content creation.

m) Identify and encourage public and private collaborations regarding design, competitiveness,  governance  and  innovation  to  promote  networking, business and partnership opportunities.

Design for Development.

n)   Conduct design-led approaches  and competitions  for the design industry to help government solve socio-economic and environmental challenges.

o)         Actively push for the use of design and innovation in government offices and departments,  with the objective of coming up with programs and processes that will enable the government to simplify and streamline systems, so it can deliver its services more effectively and efficiently.

p)   Maintain a standard of sustainable design in all projects that are undertaken by the DCP.

q)   Employ  design  as a fundamental  tool for communicating  a strong national identity of the country.

Design and Innovation.

r)     Create  a  skill  development,   mentoring,   support   system   for  individuals, corporations,  partnerships  or associations  particularly  SMEs,  who  want  to benefit from the strategic use of good design in business administration, commerce, trade and other enterprises.

s)     Undertake research and development  on the different design strengths and assets of the Philippines (i.e. manipulation and development of raw materials that  are  indigenous  to  the  country)  so  we  can  be  able  to  come  up  with globally relevant yet uniquely Filipino innovations.


Section  10.  Creation  of  the  Design  Advisory  Council.  –  There  shall  be created a Design Advisory Council, herein referred to as the DAC, which shall be a public-private  partnership  that will serve as an Advisory  Council to the DCP.
 
The DAC shall advise the DCP in the formulation and implementation  of policies that  will  enhance  the  quality  and  competitiveness  of  Philippine  products  and services and shall support the Philippine government in its efforts to enhance the level of innovation and creativity in Philippine industries.

Section  11. Powers  and Functions  of the Design Advisory  Council.  – The DAC shall advocate and promote the strategic role of design in strengthening sustainability of Philippine socioeconomic growth and competitiveness. It shall exercise the following powers and functions:

a)   Provide advice and insights imperative in pursuing the mandate of the DCP by  effectively  representing  the  collective  views  of both  public  and  private sectors.

b)  Advocate  for  full  consideration  of  design’s  contribution  to  program effectiveness and innovations in government policy decisions.

c)    Review and promote policies where design is a key component.

d)   Act as a liaison among the professional design, manufacturing SMEs, design education and government design stakeholders.

e)  Provide advice and guidance to design educational institutions on the development and standardization of curricula aligned to the objectives of the National Design Policy, ensuring the propagation of high quality education in design in all regions across the country.

Section  12. Power  to Issue  Advisory  Opinions  and  Recommendations.  – The DAC shall have the power to issue advisory opinions and recommendations on  guidelines  or  policies  for  consideration  of  DCP,  for  the  effective implementation of RA 10557.

Section 13. Composition  of the Design Advisory  Council. – The DAC shall be composed of fifteen (15) members, nine (9) of whom shall come from the government sector while the remaining six (6) shall come from the private sector.

The nine (9) representatives  from the government  sector shall be the heads of the following  agencies,  or their official designated  representatives  or alternates who  shall  be  at  least  second  ranking  permanent  officials  of  their  respective agencies, and who shall be ex-officio members of the DAC, namely:

a)   Secretary of the Department of Trade and Industry (DTI);
b)   Chairman of the National Commission for Culture and the Arts (NCCA);
c)    Secretary of the Department of Tourism (DOT);
d)   Secretary of the Department of Education (DepED);
e)   Chairperson of the Commission on Higher Education (CHED);
f)    Secretary of the Department of Science and Technology (DOST);
g)   Executive  Director of the Design Center of the Philippines  (DCP) as an ex officio member;
h)   Executive  Director  of  the  Center  for  International  Trade  Expositions  and
Missions (CITEM); and
i)     Director General of the Intellectual Property Office (IPO).

The other six (6) remaining members of the DAC shall come from organized associations involved in the design and creative industries, academic community engaged  in design courses and representatives  of the private sector including, but not limited to, visual communications, architecture, industrial design, interior design, information design, new media and technology, fashion design, environmental design, packaging, and similar areas.

The   Council   shall   be   co-chaired   by   the   Secretary   of   the   DTI   and   the representative  from the private sector who shall be appointed  by the President from among the private sector appointees.

The presence of eight (8) members shall constitute a quorum, and all decisions of the Council shall require the concurrence of the majority of such quorum. The members of the DAC shall receive per diems for every meeting attended at rates allowed under existing rules and regulations. The DAC may meet not more than twice  a month.  However,  the Chairman  may  call a special  meeting  when  the need arises.

The National Economic Development Authority (NEDA) shall be consulted on the development  of  design  policies  to  ensure  alignment  with  the  Government’s economic  agenda.  In  the  same  manner,  the  Professional  Regulations Commission (PRC) shall be consulted in formulating policies relating to the professional practice of creative and design professionals.

The DCP shall act as the Secretariat of the Council.

Section 14. Selection Process and Term of Appointment  for Private Sector Representatives.   The   six  (6)  members   from   the  private   sector   shall   be appointed  by  the  President  from  the  nominees  submitted  by  organizations  of various design and creative industries, who shall be pre-qualified and selected by the DCP and recommended by the Secretary of the DTI.

The following procedure shall be observed in the selection processes:

a)   Organizations from various design and creative industries will nominate their representatives to the DAC;

b)   Nomination letters shall be submitted to the DCP addressed to its Executive
Director;

c)    DCP shall pre-qualify the nominees based on the following selection criteria:

1.   Impeccable integrity and high motivation to serve the country;
2.   Industry expertise,  taking into account the professional  design practice, local and international experience and recognitions;
3.   In-depth knowledge on design, business and technology.

d)   After  the  pre-qualification  process,  DCP  shall  submit  the  list  of  qualified nominees to the DTI Secretary who shall further qualify and select from the selection criteria;

e)   The DTI Secretary shall recommend and submit the final list of nominees to the President;

f)     The  President  shall  select  and  appoint  six  (6)  nominees  from  the  list recommended by the DTI Secretary, based also on the above-mentioned selection  criteria,  who  shall  become  the  official  representatives  from  the Private Sector. The President shall also appoint one (1) representative  from the selected six (6) representatives  from the Private Sector who shall serve as Co-Chair of the DAC.

Private sector representatives  shall be appointed by the President for a term of three (3) years. The appointment of the next succeeding private sector representatives  of the Council shall come from nominees from other design and creative industries to ensure participation of all stakeholders.

In any event that any member of the Council fails to complete his/her term, the successor  shall also be appointed  by the President  but only for the unexpired portion of term, and shall come from the list earlier recommended by the DTI Secretary.

Section 15. Collegiality. – The DAC is a collegial body where the Chairman and its members are entitled to one (1) vote each.

Section  16.  Delegation  of  Authority.  –  Action  on  routinary  administrative matters may be delegated to any member of the DAC or to any ranking official of the Secretariat under such guidelines as the DAC may determine.

Section 17. Other Inherent, Necessary, Implied or Incidental Powers. – The DAC shall perform  and exercise  such other functions  and exercise  such other powers as may be inherent, necessary, implied or incidental to the functions assigned, and powers granted, to it under RA 10557 for the purpose of carrying out the declared policy of the RA 10557.

Section  18. Alternates.  – The ex-officio  members  of the DAC may designate their respective alternates and whose acts shall be considered as acts of the principal member.

Section 19. Per Diems and other expenses.  – The amount of Two thousand Pesos  (Php2,000.00)  shall  be  granted  to  members  of  the  DAC  per  meeting actually   attended,   subject   to   the   application   of   pertinent   laws,   rule   and regulations.


Section  20. Power and Functions  of the Executive  Director  of the DCP. – The DCP  shall have  an Executive  Director  who shall execute,  administer  and implement the policies, plans and measures approved by the DAC and perform such other functions as may be necessary to carry out specific responsibilities in connection with said plans and measures.
 
A quarterly report of the accomplishments  of the DCP shall be submitted by the Executive Director to the DAC. The DAC shall submit an annual report to the President  of the Philippines  not later than one (1) month after the end of each year.


Section 21. The National Design Policy – The NDP shall serve as the State’s strategy in promoting design as a driving force towards a sustainable economic growth and development and a catalyst for increasing the competitiveness  of the country  in the global  market.  The NDP shall be created  to meet the following goals:

a)   Global Competitiveness.

1.   Elevate   Philippine   designs   and  innovation   toward   global   standards through collaboration with international design entities.
2.   Enhance  the  competitive  and  innovative  quality  of Philippine  products and design services, making it more responsive to social needs while advocating for economic and environmental sustainability.
3.   Create  a  distinctive  and  recognizable  identity  for  Philippine  products through global positioning and branding of Philippine designs.
4.  Build the competitiveness and capabilities of Filipino designers through continuous trainings, seminars and workshops, and collaborations with Philippine manufacturers; Implement programs for design graduates and on-the-job trainees to upgrade their competencies in addressing design issues.
5.   Provide  opportunities  for  Filipino  designers  to  showcase  their  talent locally and internationally.

b)   Institutionalization  and Promotion of Design Culture Nationwide.

1.   Encourage  the creation of original designs in Philippine-made  products and  services  by  blending  native  and  heritage-based  aesthetics, indigenous arts, crafts and materials and current global design trends.
2.   Promote the understanding  and appreciation  of the diversity and extent of Philippine  cultural  heritage  to develop  a Filipino-focused  attitude  in design innovation.
3.   Enhance   the   quality   of  the   Philippine   products   and   services   and productivity of the Philippine manufacturers through design.
4.  Create design awareness among manufacturers and service providers, particularly the SMEs, on the competitiveness brought about by original designs.
5.  Conduct programs that will challenge designers, design students and ordinary citizens to actively engage in solving and mitigating socio- economic and environmental problems through design-led approaches.
6.   Establish   networks   and   resources   for   knowledge   exchange   and capability  development   leveraging  on  automation,   computerized   and web-based services.
7.   Encourage the collaboration  and partnerships among local stakeholders of the design industry such as industry associations, management of the SMEs, Filipino designers, the academe, government agencies and other private organizations.

c) Creation of an Environment to Cultivate a Constant Demand for Good Design.

1.   Ensure  the  balance  of  supply  (designers)  and  demand  (private  and public   organizations,   whether   local   or   international)   of  the   design industry.
2.   Promote  an appreciation  for good design  not only among  citizens,  but also within business organizations and government institutions.
3.   Create   linkages   with   the   business   sector,   the   educational   sector, government institutions and the public in general to encourage them to employ and invest in good design.

d)   Design Protection

1.   Promote  Philippine  designs  through  registration  of Intellectual  Property
Rights and through Technology Licensing Offices.
2.  Encourage and facilitate a culture of creating and protecting intellectual property in the area of design.

e)   Design Education and Professional Development.

1.   Elevate  design  education  and  design  research  in  the  Philippines  to global standards of excellence.
2.   Interact with government education sectors in reviewing the curriculum of design.
3.   Invest an appropriate infrastructure and technology to support design.
4.   Establish an active collaboration among industry, professional designers and the academe towards the development of the design profession.
5.   Inculcate  among  the youth the value of good design  in enhancing  the quality of human life by including design appreciation in the curriculum.

f)    Institutionalization  of Design as an Effective Problem-Solving Tool.

1.   Conceptualize  effective  and  sustainable  design-related  approaches  to drive economic growth and development.
2. Seek design solutions for issues related to social innovation and environmental sustainability and protection.
3.   Expand awareness on the benefits of the strategic use of good design in business  and government  administration,  trade and commerce,  as well as in the SMEs.
4.   Encourage   the  government   to  invest   on  activities   geared   towards increasing the competitiveness of the Philippine design and creative industries.

Section 22. Design Industries Linkages with the Educational System. – To ensure a continuous supply of creative talents and to stimulate design creativity and innovation among students at all levels of education, the education sectors such  as  the  DepEd,  the  CHED  and  the  TESDA,  in  consultation   with  and assistance   of  the  DCP,  shall  formulate   measures   to  establish   a  stronger
 
Connection between arts, culture, education and training, and to harness the Design. potentials of the youth.

For this purpose, the DAC shall develop and submit to the education sectors Fundamental  Principles  that will upgrade  the Design programs  and subjects  in school  into  a  high  status  and  rigorous  discipline  that  it  is  in  the  profession sectors.

Considering the importance of science and technology in the design process, the DOST, as member of the DAC, shall play a primary role in the development  of such Fundamental Principles.


Section 23. Appropriations. – The amount necessary to carry out the initial implementation  of this Act shall be charged  against the current year’s appropriations  of the DCP. Thereafter, such amount or appropriation  as may be necessary  for the continued  implementation  of this Act shall be included in the annual General Appropriations Act.

Section 24. Amendment. – As the need arises, this IRR may be recommended for amendment by the Executive Director.

Section  25. Authority  to Issue,  Clarify  and Amend  the Rules  and Regulations  Implementing  R.A.  10557.  –  The  DTI  Secretary  is  authorized under  this  IRR  whenever  necessary  to  promulgate  as  well  as  clarify  and/or amend these Rules.

Section 26. Repealing Clause. – Executive Order No. 133, s. 1987 is hereby amended accordingly. All other laws, decrees, executive orders, rules and regulations, or parts thereof which are inconsistent with this Act, are hereby repealed, amended or modified accordingly.

Section 27. Separability Clause. – If any provision of this IRR is declared unconstitutional,  the other provisions which are not affected thereby shall remain in force and effect.

Section 28. Effectivity. – This IRR shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) national papers of general circulation in the country.

Done in the City of Makati, this 05 day of October, in the year of our Lord, Two
Thousand and Fifteen.

RECOMMENDED  BY:

(SGD) MYRNA M. SUNICO	(SGD) PONCIANO C. MANALO, JR.
Executive Director Design Center of the Philippines	Undersecretary Trade and Investment Promotion Group