Manuel S.

Enverga University Foundation

Lucena City, Philippines
------------------------------------------------------------
Granted Autonomous Status
CHED CEB Res. 076-2009

Expanded Tertiary Education Equivalency and Accreditation Program

(ETEEAP)

Engineering Laws, Contracts and Ethics

Assignment No. 2

Submitted by:
Rany Mark D. Lachica
Course: BSME

Submitted to:

Dr. Guillermo M. Rago Jr.

Codes of Ethics:

 The highest ethical obligation of engineers is to the ‘‘safety, health, and welfare of the
public.’’ Virtually every engineering code contains similar wording and makes it clear that
the obligation to the public takes priority over obligations to clients or employers.
 Engineers must also act for clients or employers as ‘‘faithful agents or trustees,’’ with the
implicit understanding that this obligation is subordinate to the obligation to the public.
 Engineers must practice only in their areas of competence.
 Engineers must act objectively, truthfully, and in a way that avoids deception and
misrepresentation, especially to the public. This includes avoiding bribes or other actions
that might compromise an engineer’s professional
integrity.
 Engineers are encouraged (not required) to participate in civic affairs, such as career
guidance for youth, and not only to promote or ‘‘work for the advancement of the safety,
health, and well-being of their community.’’
 Engineers are encouraged (not required) to adhere to the principles of sustainable
development in order to protect the environment for future generations. In an endnote,
sustainable development is defined as ‘‘meeting human needs... while conserving and
protecting environmental quality and the natural resource base essential for human
development.’’ Increasingly, codes are making reference to the concept of sustainable
development as well as the obligation to protect the environment.
 Finally, engineers have an obligation to other engineers and to the engineering
profession. The obligation to other engineers requires them to refrain from
such activities as untruthfully criticizing the work of other engineers and to give credit to
other engineers when appropriate. The obligation to the engineering profession requires
them to conduct their work (and their advertising) with dignity as well as according to
ethical standards.

I. Fundamental Canons
Engineers, in the fulfillment of their professional duties, shall:
1. Hold paramount the safety, health, and welfare of the public.
2. Perform services only in areas of their competence.
3. Issue public statements only in an objective and truthful manner.
4. Act for each employer or client as faithful agents or trustees.
5. Avoid deceptive acts.
6. Conduct themselves honorably, responsibly, ethically, and lawfully so as to
enhance the honor, reputation, and usefulness of the profession.

II. Rules of Practice

1. Engineers shall hold paramount the safety, health, and welfare of the public.
a. If engineers’ judgment is overruled under circumstances that endanger life or
property, they shall notify their employer or client and such other authority as may be
appropriate.

b. Engineers shall approve only those engineering documents that are in conformity
with applicable standards.
c. Engineers shall not reveal facts, data, or information without the prior con-
sent of the client or employer except as authorized or required by law or

this Code.
d. Engineers shall not permit the use of their name or associate in business
ventures with any person or firm that they believe is engaged in fraudulent
or dishonest enterprise.

e. Engineers shall not aid or abet the unlawful practice of engineering by a

person or firm.

f. Engineers having knowledge of any alleged violation of this Code shall

report thereon to appropriate professional bodies and, when relevant, also
to public authorities, and cooperate with the proper authorities in furnishing such
information or assistance as may be required.

2. Engineers shall perform services only in the areas of their competence.

a. Engineers shall undertake assignments only when qualified by education or
experience in the specific technical fields involved.

b. Engineers shall not affix their signatures to any plans or documents dealing
with subject matter in which they lack competence, nor to any plan or doc-
ument not prepared under their direction and control.

c. Engineers may accept assignments and assume responsibility for coordina-

tion of an entire project and sign and seal the engineering documents for the entire
project, provided that each technical segment is signed and sealed only by the qualified
engineers who prepared the segment.

3. Engineers shall issue public statements only in an objective and truthful

manner.
a. Engineers shall be objective and truthful in professional reports, statements,
or testimony. They shall include all relevant and pertinent information in such reports,
statements, or testimony, which should bear the date indicating when it was current.

b. Engineers may express publicly technical opinions that are founded upon
knowledge of the facts and competence in the subject matter.

c. Engineers shall issue no statements, criticisms, or arguments on technical

matters that are inspired or paid for by interested parties, unless they have
prefaced their comments by explicitly identifying the interested parties on whose behalf
they are speaking, and by revealing the existence of any interest the engineers may
have in the matters.

4. Engineers shall act for each employer or client as faithful agents or trustees.
a. Engineers shall disclose all known or potential conflicts of interest that
could influence or appear to influence their judgment or the quality of
their services.

b. Engineers shall not accept compensation, financial or otherwise, from more

than one party for services on the same project, or for services pertaining to
 the same project, unless the circumstances are fully disclosed and agreed to
by all interested parties.

c. Engineers shall not solicit or accept financial or other valuable consider-

ation, directly or indirectly, from outside agents in connection with the work for which
they are responsible.

d. Engineers in public service as members, advisors, or employees of a govern-

mental or quasi-governmental body or department shall not participate in decisions with
respect to services solicited or provided by them or their organizations in private or
public engineering practice.
e. Engineers shall not solicit or accept a contract from a governmental body on which a
principal or officer of their organization serves as a member.

5. Engineers shall avoid deceptive acts.

a. Engineers shall not falsify their qualifications or permit misrepresentation of their or
their associates’ qualifications. They shall not misrepresent or exaggerate their
responsibility in or for the subject matter of prior assignments. Brochures or other
presentations incident to the solicitation of employment shall not misrepresent pertinent
facts concerning employers, employees, associates, joint venturers, or past
accomplishments.

b. Engineers shall not offer, give, solicit, or receive, either directly or indi-
rectly, any contribution to influence the award of a contract by public authority, or which
may be reasonably construed by the public as having the effect or intent of influencing
the awarding of a contract. They shall not offer any gift or other valuable consideration in
order to secure work. They shall not pay a commission, percentage, or brokerage fee in
order to secure work, except to a bona fide employee or bona fide established
commercial or marketing agencies retained by them.

Code of Mechanical Engineering Ethics in the Philippines

Pursuant to Section 9 of Commonwealth Act No. 294, as amended, otherwise known as the
Mechanical Engineering Law, this Code of Mechanical Engineering Ethics is hereby adopted by
the Board of Mechanical Engineering as part of the Rules and Regulations governing the
practice of Mechanical Engineering.

GENERAL PRINCIPLES

Rule 1. The mechanical engineer shall, in the practice of his profession, be governed by the
Golden Rule, the ideals of service to man and his environment, and the indispensability of
unwavering public confidence in his professional competence, integrity and humanity.

Rule 2. The mechanical engineer shall maintain the proper pride for his profession, observe the
standards of professional practice, safeguard the dignity, welfare, and reputation of his
colleagues in the professions, and fulfill his duties and obligations as a citizen of the Republic of
the Philippines.
Rule 3. The mechanical engineer shall update and enhance constantly his professional
knowledge and skills through assiduous research and study, and meaningful participation in
continuing education programs and seminars conducted or authorized by the Philippine Society
of Mechanical Engineers or educational institutions supervised by the State.

Rule 4. The ethical principle governing the mechanical engineer applies equally to partnerships,
firms and entities organized and existing for the practice of mechanical engineering.

RELATIONS WITH THE STATE

Rule 5. The mechanical engineer shall honor and respect the supreme authority of the State,
the Rule of Law, the primacy of the general welfare, the fundamental rights of persons, and the
obligations and privileges of citizens recognized and guaranteed by the Constitution of the
Philippines.

Rule 6. He shall cooperate fully with the State in the pursuit of national development plans and
programs, the inviolability of national security, the promotion of peace, and the prevention
and/or prosecution of unjust, criminal or unlawful acts and omissions.

Rule 7. He shall be ready to render the services needed for the adequate and orderly
development of the resources of the country, and to offer his mechanical devices and inventions
essential or necessary for national defense.

Rule 8. In a national emergency, he shall offer his professional knowledge, skill and experience
in the service of the State.

RELATIONS WITH THE COMMUNITY

Rule 9. The mechanical engineer shall be well-informed of the latest technological progress in
his own line of work. He shall encourage and require the use, or application of standard
mechanical equipment, machinery, or processes for safety, economy and efficiency.

Rule 10. Whenever he designs a mechanical equipment, machinery or process, or prepares the
layout of a project, he must apply an adequate factor of safety, and provide for the necessary
leeway for proper operating and maintenance conditions.

Rule 11. When he discovers faulty or unsafe devices, equipment, or machinery in any place,
work or plant, he shall without delay, give notice thereof to the proper authority, public or private,
for the immediate and effective correction, regardless of whether or not he is responsible for
said place, work or plant.

RELATIONS WITH LABOR

Rule 12. The mechanical engineer shall recognize labor as one of the major resources of our
country. He must acknowledge that a working man is not a mechanical robot but a human
being.
Rule 13. He shall be familiar with the State policies on Labor and Social Justice, as well as labor
and social legislation and shall observe faithfully these policies and laws in his dealings with
labor in general, and with his workmen in particular.

Rule 14. He shall strive to improve the skills of his workmen, pay them a fair living wage, and
instruct them on how to prevent accidents in their place of work.

RELATIONS WITH CLIENTS AND EMPLOYERS

Rule 15. The mechanical engineer shall observe punctuality in his appointments, perform
honestly and in good faith his contractual obligation and his duties and obligations to his client
or employer, and observe fair dealing in his relations with his clients and employers.

Rule 16. He shall treat with confidentiality any information obtained by him as to the business
affairs and technical methods or processes of a client or employer.

Rule 17. He shall inform his client or employer of his business connections, interests, or
affiliations which may influence his judgment, or impair the quality or character of his services.

Rule 18. The mechanical engineer is entitled to a just and fair compensation for his services. In
the computation of such compensation, the period of time consumed, his knowledge, skill,
experience, and reputation, and the depreciation of instruments and materials used, shall be
considered and accorded such weight as is just and reasonable.

Rule 19. He shall accept compensation, financial or otherwise, for his services from his client or
employer only. He may agree to, or receive compensation from any other source only with the
full knowledge and consent of all parties concerned.

Rule 20. The mechanical engineer shall be completely above suspicion or reproach in his
relation with his clients or employers, avoiding the remotest reference or relation to any secret
or questionable agreement on commissions or other financial considerations promised by or
received from any person or entity other than his client or employer.

RELATIONS WITH COLLEAGUES AND ASSOCIATES

Rule 21. To thane own self be true and thou cannot be false to any man - expresses the duty
which a mechanical engineer owes to himself and to others.

Rule 22. The mechanical engineer shall use only fair means to gain professional advancement.
In the pursuit thereof he shall not injure the work or employment opportunities of others or use
any improper or questionable method of soliciting employment or clientele.

Rule 23. He shall refrain from association with, or allowing the use of his name by, any person
or entity of questionable reputation.

Rule 24. He shall provide the opportunity and the means to improve and advance the
knowledge, skills, and experience of his colleagues and associates.
Rule 25. He shall define clearly the line of authority and scope of responsibility of his associates
and assistants. Orders, or the recall thereof, shall be issued through proper channels.

Rule 26. He shall be receptive to new ideas and suggestions from others, and ready to
recognize, encourage, and accredit the authors thereof. Suggestions from colleagues and
associates shall be given more careful attention.

Rule 27. He shall use tact and discretion in dealing with his colleagues and associates, but not
at the sacrifice of firmness. He shall work out difficult problems with courage and serenity.

Rule 28. Careful selection of understudies shall be a guiding principle, and preference shall be
given to those with adequate engineering education.

Rule 29. He shall not expect others to face danger that he himself will not face. He shall observe
at all times safety requirements for the protection of all concerned.

Rule 30. The mechanical engineer shall actively support the duly accredited association with the
end in view of enhancing the practice of the profession and discharging his public
responsibilities as professional.

PENAL PROVISIONS

Rule 31. Violation of any provision of this code, which causes damage or injury to another, shall
be punishable by a fine of not more than Two hundred Pesos (P200.00), or an imprisonment for
not more than (2)months, or both, at the discretion of the Court.

Rule 32. Violation of any provision of this Code shall likewise constitute unethical,
unprofessional and dishonorable conduct, and shall be dealt with under the provisions of Sec.
42 of the Mechanical Engineering Act, R.A. No. 8495.

EFFECTIVITY

Rule 33. This Code shall take effect after approval by the Professional Regulation Commission
and after fifteen (15) days following its publication in the Official Gazette.

Republic Act 8293: Protecting the Intellectual Property in the Philippines

Background

Intellectual property (IP) refers to any creation or product of the human mind or intellect. It can
be an invention, an original design, a practical application of a good idea, a mark of ownership
such as trademark, literary and artistic works, among other things. The term intellectual property
rights consists of (1) copyrights and related rights; (2) trademarks and service marks; (3)
geographic indications; (4) industrial designs; (5) patents; (6) layout-designs (topographies) of
integrated circuits; and (7) protection of undisclosed information (IPOPHL, 2013). 

Intellectual creations are deemed necessary for a successful business since IPs allow the
recognition and control over the commercialization of a creation or invention. An effective IP
system is vital to ensure the development of domestic and creative activity, to facilitate the
transfer of technology, to attract foreign investment and to ensure market access for products.

Coverage of the IP Code

The important provisions of the IP Code of the Philippines include among others (1) laws on
patents, (2) laws on trademarks, service marks and trade names, and (3) laws on copyright

The Law on Patents (Part II). The salient provisions under law of patents stipulate the
patentable inventions and the right to a patent. It also has provisions on patent application,
procedure for grant of patent, cancellation of patents and substitution of patentee, remedies of a
person with a right to a patent, rights of patentees and infringement of patents, voluntary
licensing, compulsory licensing, assignment and transmission of rights, registration of utility
models and industrial design, the qualifications in applying for and the granting and cancellation
of patents

The IP Code define patentable as any technical solution of a problem in any field of human
activity which is new, involves an inventive step and is industrially applicable. It may include or
relate to a product, a process, or an improvement of any of the foregoing. The right to a patent
belongs to the inventor, his heirs, or assigns. When two or more persons have jointly made an
invention, the right to patent shall belong to them jointly. The exclusive right gives the inventor
the right to exclude others from making, using, or selling the product of his invention during the
life of the patent.

An important feature under the Right to Patent is the “First to File Rule”. This policy gives right
to the patent to the person who had the earliest filing date, in case two or more applications are
filed for the same invention. This rule is critical since an inventor may lose his/her claim if he/she
does not file the patent at once. The term of patent shall be twenty (20) years from the filing
date of the application.

The Law on Trademarks, Service Marks and Trade Names (Part III). A trademark is a tool
used to differentiate goods and services from each other. Part III of the IP Code states that the
rights in a mark shall be acquired through registration made validly in accordance with the
provisions of this law[5].  The certificate of registration shall remain in force for ten (10) years
and may be renewed for periods of ten years at its expiration upon payment of the prescribed
fee and upon filing of a request.

The Law on Copyright (Part IV). Copyright is the legal protection extended to the owner of the
rights in an original work, which may refer to every production in the literary, scientific, and
artistic domain. Among the literary and artistic works enumerated in the IP Code are books, and
other writings, musical works, films, paintings and other works, and computer programs
(IPOPHL, 2013).

Most of the amendments in R.A. 8293 as stated in R.A. 10372 or the revised IP Code are on
provisions pertaining to the Law on Copyright. The powers of the Director General and Deputy
Director General were broadened to include enforcement functions supported by concerned
agencies such as the Philippine National Police (PNP), the National Bureau of Investigation
(NBI), the Bureau of Customs (BOC), the Optical Media Board (OMB), and the Local
Government Units (LGUs), among others. This is a strategic move to intensify the government’s
fight against pirated merchandise, protecting both the creators and the consumers. Another
section added, is on the Adoption of Intellectual Property Policies by schools and universities to
safeguard the intellectual creations of the learning institutions and its employees.

Repealed Laws. Republic Act 8293 repealed the following laws: R.A. No.165 or the Patent Law
(creating the patent office) and R.A. No. 166 or the Trademark Law (providing for the
registration and protection of trade-marks, trade-names and service-marks) which were signed
on June 20, 1947; Articles 188 (subsisting and altering trade-mark, trade-names, or service
marks) and 189 (unfair competition, fraudulent registration of trade-mark, trade-name or service
mark, fraudulent designation of origin, and false description) of the Revised Penal Code;
Presidential Decree (P.D.) No. 49, signed  November 14, 1972 (decree on the protection of
intellectual property); and P.D. No. 285, signed September 3, 1973 (authorizing the compulsory
licensing or reprinting of educational, scientific or cultural books and materials).

Conclusion

With the continuous improvement in technology, our thoughts and imaginations before are now
real and continuously changing. The IP Code is put in place to protect the creative minds of the
Filipinos who have endless innovative works. Further amending the IP Code is a significant
stride in the government’s fight against piracy. The IP Code does not only protect the outputs of
the creators, but also safeguards the general public from pirated merchandise, which may be
cheaper but may have harmful effects. The success of IP Code implementation does not only
rest on IPOPHL but also on the inventors and creators.  They should be watchful against illegal
copying and reproduction and at the same time responsible with their duties as inventors and
creators (e.g. payment of fees) in order to protect their intellectual property.

CASE STUDY 1
“SIGNING AND SEALING PLANS”
Engineer Asuncion is the chief engineer in a large engineering firm and affixes his seal to some
of the plans not prepared by registered engineers working under his general direction who do
not affix their seals to the plans. At times Engineer Asuncion also seals plans prepared by a
non-registered, graduate engineer working under his general supervision.
Because the size of the organization and the large number of projects being designed at any
one time, Engineer Asuncion finds it impossible to give a detailed review or check of the
designed. He believes he is ethically and legally correct in not doing so because of his
confidence in the ability of those he has hired and who are working under his general direction
and supervision.
By general direction and supervision, Engineer Asuncion means that he is involved in helping to
establish the concept, the design requirements, and review elements of the design or projects
status as a design progresses. Engineer Asuncion is consulted about technical question and
answers and direction in these matters.

CASE STUDY 2
ALPHA ELECTRONICS
Engr. Samonte was Alpha Electronics’ project leader on a new contract to produce
manufactured weaponry devices for companies doing business with NATO
government agencies in the mid 1980s,. The devices were advanced technology
land mines with electronic controls that could be triggered with capacitor circuits to
go off only at specified times, with electronic controls that could be triggered with
capacity circuits to go off only at specified times, rather than years later when
children might be playing in old minefields. NATO provided all the technical
specifications and Alpha Electronics fulfilled the contract without problems.
However, Engr. Samonte was concerned that one new end user of this device could
negate the safety aspects of the trigger and make the land mines more dangerous
than any others on the market.
After THE NATO contract was completed, Engr. Samonte was dismayed to learn that
Alpha Electronics had signed another contract with an Eastern European firm that
had a reputation of stealing a patented devices and also of doing business with
terrorist organizations, Engr. Samonte halted the production of the devices. He then
sought advice from some of his colleagues and contacted the US State
department’s Office of Munitions Controls. In retrospect, he wishes he had also
contacted the Department of Commerce’s Bureau of Export Administration, as well
as the Defense Department. He ruefully acknowledges that the issue would have
been brought to a close much more quickly.
The contract that Engr. Samonte unilaterally voided by his action was for nearly $2
million over 15 years. Engr. Samonte noted that no further hiring or equipment
would have been needed, so the contract promised to be highly profitable. There
was a $15,000 penalty for breaking the contract.
On the basis of global corporate citizenship, it was clear that Alpha Electronics could
legally produce the devices for the NATO countries but not for the Eastern European
company. The cold war was in full swing at that time.
On the basis of local corporate citizenship, it was clear that Alpha electronics had to
consider the expected impact on local communities. In particular, there was no
guarantee regarding to whom the Eastern European company would be selling the
devices and how they would end up being used.
Engr. Samonte took matters into his own hands without any foreknowledge of how
his decision would be viewed by his company’s upper management, board of
directors, or fellow workers, many of whom were also company stockholders.
Happily, Engr. Samonte was never punished for his unilateral action of halting
production. He recently retired from Alpha Electronics as a corporate-level vice
president. He was especially gratified by the number of Alpha Employees who were
veterans of world war II, the Korean War, and the Vietnam War who thanked him for
his action.
Engr. Samonte strongly believed his action was the right thing to do, both for his company and
for the public welfare. What ideas typically covered in an engineering ethics course might
support that conviction.