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

Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

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

Leaders at the newly merged firm Jones Maxwell Smith & Davis reveal their plan to take on bigger firms while attracting more clients and talent
Charles Achkar, who will bring a team of two with him, said he was excited about joining ‘one of the few strong IP boutiques’
Andy Lee, head of IP at Brandsmiths and winner of the Soft IP Practitioner of the Year award, tells us why 2024 was a seminal year and why clients value brave advice
The deal to acquire MIP's parent company is expected to complete by the end of May 2025
Jinwon Chun discusses the need for vigilance, his love for iced coffee, and preparing for INTA
Karl Barnfather’s new patent practice will focus on protecting and enforcing tech innovations in the electronics, AI, and software industries
Partner Ranjini Acharya explains how her Federal Circuit debut resulted in her convincing the court to rule that machine learning technology was not patent-eligible
Paul Hastings and Smart & Biggar also won multiple awards, while Baker McKenzie picked up a significant prize
Burford Capital study finds that in-house lawyers have become more likely to monetise patents, but that their IP portfolios are still underutilised
Robert Reading and Faidon Zisis at Clarivate unpick some of the data surrounding music-related trademarks
Gift this article