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 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

IP STARS, Managing IP’s accreditation title, reveals its latest rankings for patent work, including which firms are moving up
Leaders at US law firms explain what attorneys can learn from AI cases involving Meta and Anthropic, and why the outcomes could guide litigation strategies
Attorneys reveal the trademark and copyright trends they’ve noticed within the first half of 2025
Senior leaders at TE Connectivity and Clarivate explain how they see the future of innovation
A new action filed by Nokia against Asus and a landmark ruling on counterfeits by South Africa’s Supreme Court were also among the top talking points
Counsel explain how they’re navigating patent prosecution matters and highlight key takeaways from Federal Circuit cases
A partner who joined Fenwick alongside two others explains what drew her to the firm and her hopes for growth in Boston
The England and Wales High Court has granted Kirkland & Ellis client Samsung interim declaratory relief in its ongoing FRAND dispute with ZTE
A UDRP decision that found in favour of a small business in a domain name dispute could encourage more businesses to take a stand in ‘David v Goliath’ cases
In Iconix v Dream Pairs, the Supreme Court said the Court of Appeal was wrong to interfere with an earlier ruling, prompting questions about the appeal court’s remit
Gift this article