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

News of Health Hoglund joining Sisvel and the Delhi High Court staying a $2.2 million decree in favour of Philips were also among the top talking points
The firm is continuing its aggressive IP hiring streak with the addition of partner Matthew Rizzolo
Pantech counsel Shogo Matsunaga speaks exclusively to Managing IP about how his team proved Google’s unwillingness, and ultimately secured a landmark SEP settlement
New partners, including the firm’s first female head of a department, are eyeing a deeper focus on client understanding
Chunguang Hu of China PAT explains why his ‘insider’ experience as a patent examiner benefits clients and why he wants to debunk the myth that IP has limited value in China
Essenese Obhan shares his expansion plans and vision of creating a ‘one-stop shop’ for clients after Indian firms Obhan & Associates and Mason & Associates joined forces
From AI and the UPC to troublesome trademarks in China, experts name the IP trends likely to dominate 2026
Colm Murphy says he is keen to help clients navigate cross-border IP challenges in Europe
With 2025 behind us, US practitioners sit down with Managing IP to discuss the major IP moments from the year and what to expect in 2026
Large-scale transatlantic mergers will give US entities a strong foothold at the UPC, and could spark further fragmentation of European patent practices
Gift this article