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

Cookies Settings

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

Anita Polott, who is celebrating three decades at Morgan Lewis this year, reflects on career progression, stepping into unfamiliar territory, and leadership frameworks
Technical excellence remains essential, but many firms are discovering that packaging IP with complementary practice areas can unlock new clients and a stronger competitive position
As international interest in Southeast Asia grows, Sheng Rong Tng discusses how changing client demands and the firm’s multidisciplinary model are helping it compete for complex regional mandates
Todd Hopfinger, director in Sterne Kessler’s electronics practice group, says IP owners are contemplating how patent rights will be enforced as commercial activity expands beyond Earth
Christopher Stothers' arrival strengthens the firm's life sciences, technology and UPC offering as competition for top European litigators intensifies
Armstrong Teasdale’s Jim Heinen Jr discusses the challenge of balancing billables, business development and family life and explains why not all patent lawyers are science nerds
From cross-border jurisdiction to the end of the transitional period, Powell Gilbert’s Ioana Sabau and Bryce Matthewson predict the biggest talking points ahead
A wave of office launches and lateral hires reflects the draw of patent disputes, but booming AI, semiconductor and data centre markets are offering an even bigger IP opportunity
The hire of Frederick Nicolle as a partner continues Pinsent Masons' expansion while reducing Simmons’ patent prosecution offering in London to zero
The expansion into Granada forms part of a national ‘decentralisation’ strategy focused on providing proximity to research and tech businesses away from traditional hubs
Gift this article