University of the Cordilleras College of Law Intellectual Property Law TRADEMARK

1. X, a foreign corporation registered in the United States "Folgers" as trademark of its coffee prod ct. ! prod ces instant chocolate in the "hilippines sing the trademark, ""olgers". #s ! lia$le for infringement% No. Y is not liable for infringe ent. Ne!ert"eless# "e ay be "el$ liable for unfair

co petition. %n$er &ection '() of t"e IP*# +In particular# an$ wit"out in any way li iting t"e scope of protection against unfair co petition# t"e following s"all be $ee e$ guilty of unfair co petition, -a. Any person# w"o is selling "is goo$s an$ gi!es t"e appearance of goo$s of anot"er t"e general

anufacturer or $ealer# eit"er as to t"e goo$s t"e sel!es or

in t"e wrapping of t"e pac/ages in w"ic" t"ey are containe$# or t"e $e!ices or wor$s t"ereon# or in any ot"er feature of t"eir appearance# w"ic" woul$ be li/ely to influence purc"asers to belie!e t"at t"e goo$s offere$ are t"ose of a anufacturer or $ealer# ot"er t"an t"e actual

anufacturer or $ealer# or w"o ot"erwise clot"es t"e goo$s wit" suc" appearance as s"all $ecei!e t"e public an$ $efrau$ anot"er of "is legiti ate tra$e# or any subse0uent !en$or of suc" goo$s or any agent of any !en$or engage$ in selling suc" goo$s wit" a li/e purpose1 -b. Any person w"o by any artifice# or $e!ice# or w"o e ploys any ot"er eans calculate$ to

in$uce t"e false belief t"at suc" person is offering t"e ser!ices of anot"er w"o "as i$entifie$

&ione 'larisse C. ( evara Section )

suc" ser!ices in t"e

in$ of t"e public1 or -c. Any person w"o s"all

a/e any false state ent

in t"e course of tra$e or w"o s"all co

it any ot"er act contrary to goo$ fait" of a nature

calculate$ to $iscre$it t"e goo$s# business or ser!ices of anot"er.2 T"e circu stances conte plate$ un$er &ection '() are present in t"is case because Y *orporation ga!e its pro$uct t"e appearance an$ wit" an intent to ar/ confusingly to t"at of 3 *orporation

a/e use an$ ta/e a$!antage o!er t"e goo$will of t"e latter.

*. #s X correct to say that it is $enefited $y the +ell,known -ark . le hence eligi$le to file s it% #s it correct for ! to have a defense that chocolate drinkers are different from coffee drinkers% T"e contention of 3 t"at "e is eligible to file a suit or case in t"e P"ilippines un$er t"e well4/nown ar/ rule is wit" erit. A pro!ision of t"e law clearly $e onstrates t"at t"e

owner of a well-known that is not registered in the Philippines , may against an identical or confusingly similar mark, oppose its registration, or petition the cancellation of its registration or sue for unfair competition, without prejudice to availing himself of other remedies provided for under the law -&ection '5'.. T"erefore# 3 is entitle$ to bring a suit as against Y un$er t"e well4/nown t"ey "a!e registere$. A $efense t"at c"ocolate $rin/ers are $ifferent fro coffee $rin/ers is not plausible. 6ot" ar/ rule for $ecei!ing t"e public as to t"e pro$ucts t"at

sectors fall un$er t"e sa e category per 7IP8 classification.

&ione 'larisse C. ( evara Section )

/. ! registered "0arako" as trademark of his chocolate. 1e later learned that X is registering "0arak" as trademark of an instant chocolate drink. #s ! eligi$le to file a s it nder the +ell,known -ark . le% X is registered in the Unites States. 0arako is pop lar in the "hilippines. No. 6ara/o is not eligible to file a suit un$er t"e 7ell4/nown Mar/ Rule. Note t"at tra$e ar/ laws are as a general rule territorial in nature. An e9ception t"ereto is w"en t"e applicability of t"e 7ell4/nown Mar/ Rule an$ Reciprocity co es into play. 7"at is conte plate$ in t"e 7ell4/nown Mar/ Rule is t"e protection of a ar/ w"ic" is

internationally /nown. In t"e case at "an$# 6ara/o is /nown only in t"e P"ilippines an$ not internationally.

2. X wants to esta$lish man fact ring plant in the "hilippines nder Folgers. +hat are the two primary re3 irements that a sister corporation in the "hilippines m st ndertake% &uppose foreign corporation 3 wis"es to establis" a P"ilippines# t"e following re0uire ents anufacturing plant in t"e

ust be co plie$ wit", -a. registration an$ reporting

a$e !ali$ly in accor$ance wit" t"e pro!isions of t"e law an$ -b. !oluntary licensing agree ent. T"ese re0uisites are pro!i$e$ for un$er &ection ':; of t"e IP* w"ic" rea$s, +Any license contract concerning t"e registration of a ar/# or an application t"erefor# s"all pro!i$e

for effecti!e control by t"e licensor of t"e 0uality of t"e goo$s or ser!ices of t"e licensee in connection wit" w"ic" t"e ar/ is use$. If t"e license contract $oes not pro!i$e for suc"

0uality control# or if suc" 0uality control is not effecti!ely carrie$ out# t"e license contract s"all not be !ali$. <urt"er ore# a license contract s"all be sub itte$ to t"e 8ffice w"ic" s"all

&ione 'larisse C. ( evara Section )

/eep its contents confi$ential but s"all recor$ it an$ publis" a reference t"ereto. A license contract s"all "a!e no effect against t"ir$ parties until suc" recor$ing is effecte$. T"e Regulations s"all fi9 t"e proce$ure for t"e recor$ing of t"e license contract.2

&ione 'larisse C. ( evara Section )