Jollibee, a Philippines-based fast food chain, took action against Richard Chua, a businessman who was selling slippers and sandals with a logo similar to the Jollibee logo. In June 2004 a regional trial court found that the Jollibee trade mark was well known and sentenced Chua to two years in prison.

In November last year the Court of Appeals agreed and extended the sentence to between two and five years, stating: "As Jollibee's trade marks are undoubtedly 'well-known marks' it is glaringly apparent that the use of these marks on the footwear products of appellant is obviously for no other reason than to ride on the popularity that Jollibee enjoys."

Chua filed a motion for reconsideration, arguing that there was no infringement as the goods he was selling were different from Jollibee's fast-food products and that he did not represent himself as the owner of the company selling the footwear.

On June 23 the same judges reversed their November judgment, saying: "We find the likelihood of deception or confusion on the part of the consuming public remote."

"They are two contradictory decisions," said Peter Calimag, an associate of Baker & McKenzie in Manila. Calimag described the first Court of Appeals decision as well written and said he was "surprised" by the fact that the same three judges have now reversed it.

In an emailed statement, a spokesperson for Jollibee told Managing IP that the company "respects the decision of the Courts of Appeals", but did not confirm whether Jollibee was planning to appeal, stating only that the company was "exploring its options".

Alampay Gatchalian Mawis & Alampay Law Offices acted for Jollibee in the case.