Philippines: Court issues judgment on confusion of business and unfair competition

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Philippines: Court issues judgment on confusion of business and unfair competition

An action for unfair competition in the Philippines has two essential elements as stated by the Supreme Court in a number of cases: (1) confusing similarity in the general appearance of the goods, and (2) intent to deceive the public and deceive a competitor. On the issue of confusion, two types have been noted. These are confusion of goods and confusion of business or source of origin. In the case of Asia Pacific Resources International Holdings, Ltd. v PAPERONE, INC. (G.R. Nos. 213365-66, December 10 2018), the Supreme Court found Paperone guilty of unfair competition.

Asia Pacific, a manufacturer and seller of pulp and premium wood free paper, is the owner of the trademark PAPER ONE applied for at the Intellectual Property Office (IPOPHL) in 1999 and registered in 2003. The respondent PAPERONE, on the other hand, is engaged in the business of paper conversion, manufacturing table napkins, notebooks and writing pads, and the corporation has existed since 2001. It averred that the Department of Trade and Industry and Securities and Exchange Commission had allowed it to use PAPERONE as its corporate name, and that it did not use PAPERONE as a trademark, but to identify itself only as the manufacturer of the product, as shown below:

ASIA PACIFIC RESOURCES

philippines-1-200.jpg

PAPERONE, INC.

philippines-2-100.jpg

The Supreme Court affirming the decision of the IPOPHL, and reversing the Court of Appeals noted that: (i) the goods of both parties are related as paper products, (ii) PAPER ONE as a trademark of Asia Pacific had been used even before its application in 1999, (iii) some of Paperone's stockholders had knowledge of the existence and use of the mark PAPER ONE and even wrote a letter expressing a desire to be the exclusive distributor of PAPER ONE multi-purpose copy paper, as the evidence showed. The court admitted that while there was a noticeable difference in how the trade name of the respondent PAPERONE was being used on its products in comparison with the trademark of Asia Pacific, "there could likely be confusion as to the origin of the products." Thus, a consumer might conclude that PAPER ONE products were manufactured by or were products of Paperone.

hechanova-editha.jpg
carbonell-grace-christy.jpg

Editha R

Hechanova

Grace Christy

G Carbonell


Hechanova & Co., Inc.Salustiana D. Ty Tower104 Paseo de Roxas AvenueMakati City 1229, PhilippinesTel: (63) 2 812-6561Fax: (63) 2 888-4290editharh@hechanova.com.ph 

www.hechanova.com.ph

more from across site and SHARED ros bottom lb

More from across our site

Sim & San, which secured the $16m victory for their client, previously led Communications Components Antenna to a $26m damages win in 2024
IP litigator Ruth Hoy has led the London office since 2022
Emotional Perception AI is seeking more than £200,000 after the UK Supreme Court backed its appeal
Lawyers at Pinsent Masons discuss why the advent of ‘AI-free’ might be a crucial moment for brands seeking to protect their identity
Newly independent King & Wood has established offices in North America, while Mallesons has entered a ‘new era’ with a 1,200-lawyer firm across Australia and Singapore
Ryan Dykal and John Wittenzellner of Boies Schiller Flexner tell Managing IP what’s driving the firm’s patent litigation expansion
News of Dolby suing Snap over AV1 and HEVC patents and SCOTUS offering guidance on the liability of internet service providers were also among the top talking points
Arrival of Caitlin Heard will bolster the soon-to-be-created Ashurst Perkins Coie’s IP presence in the capital
AI, cybersecurity and data practice group will provide clients with legal guidance around AI alongside a 'deep technical foundation’ in IP
Lawyers at Vondst and Biopatents say a ruling concerning the protected status of trade secrets could see the UPC flooded with requests to prevent access to confidential information
Gift this article