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

News of EasyGroup failing in its trademark infringement claim against ‘Easihire’ and Amgen winning a key appeal at the UPC were also among the top talking points
Submit your nominations to this year's WIBL EMEA Awards by February 16 2026
Edward Russavage and Maria Crusey at Wolf Greenfield say that OpenAI MDL could broaden discovery and reshape how clients navigate AI copyright disputes
The UPC has increased some fees by as much as 32%, but firms and their clients had been getting a good deal so far
Meryl Koh, equity director and litigator at Drew & Napier in Singapore, discusses an uptick in cross-border litigation and why collaboration across practice areas is becoming crucial
The firm says new role will be at the forefront of how it delivers value and will help bridge the gap between lawyers, clients and tech
Qantm IP’s CEO and AI programme lead discuss the business’s investment and M&A plans, and reveal their tech ambitions
Controversial plans were scrapped by the Commission earlier this year after the Parliament had previously backed them
Lawyers at Spoor & Fisher provide an overview of how South Africa is navigating copyright and consent requirements to improve access to works for blind and visually impaired people
Gillian Tan explains how she balances TM portfolio management with fast-moving deals, and why ‘CCP’ is a good acronym to live by
Gift this article