A recent decision of the Court of Appeals (CA) has sent some shock waves among IP lawyers in the Philippines. On June 4 2001, In-N-Out Burger Inc, a US corporation, filed an administrative complaint for unfair competition with damages before the Intellectual Property Office of the Philippines (IPPhil) against Sehwani Inc, owner of the Philippine registered trade mark In N Out, and its licensee Benita's Frites. On December 22 2003, the Bureau of Legal Affairs (BLA), the adjudicating body of IPPhil, issued a decision, which declared In-N-Out an internationally well-known mark owned by In-N-Out Burger. It cancelled the registration of Sehwani for the identical trade mark but held that there was no unfair competition. The Court agreed that Sehwani had used the mark in good faith and so denied the claim for damages. Both parties appealed the decision to the Director General of IPPhil, who modified the decision of the BLA by declaring the existence of unfair competition, and awarding damages of P1.2 million ($24,000) to In-N-Out Burger Inc.