Protection of Trademarks
Protection of Trademarks
Protection of Trademarks
Section 10. The Bureau of Legal Affairs. - The Bureau of Legal Affairs shall have the (iii) The condemnation or seizure of products which are subject of the offense.
following functions: The goods seized hereunder shall be disposed of in such manner as may be
deemed appropriate by the Director of Legal Affairs, such as by sale, donation
10.1. Hear and decide opposition to the application for registration of marks; to distressed local governments or to charitable or relief institutions,
cancellation of trademarks; subject to the provisions of Section 64, cancellation of exportation, recycling into other goods, or any combination thereof, under such
patents, utility models, and industrial designs; and petitions for compulsory licensing of guidelines as he may provide;
patents;
(iv) The forfeiture of paraphernalia and all real and personal properties which
10.2. (a) Exercise original jurisdiction in administrative complaints for violations of laws have been used in the commission of the offense;
involving intellectual property rights: Provided, That its jurisdiction is limited to
complaints where the total damages claimed are not less than Two hundred thousand (v) The imposition of administrative fines in such amount as deemed
pesos (P200,000): Provided further, That availment of the provisional remedies may be reasonable by the Director of Legal Affairs, which shall in no case be less than
granted in accordance with the Rules of Court. The Director of Legal Affairs shall have Five thousand pesos (P5,000) nor more than One hundred fifty thousand
the power to hold and punish for contempt all those who disregard orders or writs pesos (P150,000). In addition, an additional fine of not more than One
issued in the course of the proceedings. (n) thousand pesos (P1,000) shall be imposed for each day of continuing
violation;
(b) After formal investigation, the Director for Legal Affairs may impose one (1)
or more of the following administrative penalties: (vi) The cancellation of any permit, license, authority, or registration which may
have been granted by the Office, or the suspension of the validity thereof for
(i) The issuance of a cease and desist order which shall specify the acts that such period of time as the Director of Legal Affairs may deem reasonable
the respondent shall cease and desist from and shall require him to submit a which shall not exceed one (1) year;
compliance report within a reasonable time which shall be fixed in the order;
(vii) The withholding of any permit, license, authority, or registration which is
(ii) The acceptance of a voluntary assurance of compliance or discontinuance being secured by the respondent from the Office;
as may be imposed. Such voluntary assurance may include one or more of the
following: (viii) The assessment of damages;
(1) An assurance to comply with the provisions of the intellectual property law (ix) Censure; and
violated;
(x) Other analogous penalties or sanctions. (Secs. 6, 7, 8, and 9, Executive
(2) An assurance to refrain from engaging in unlawful and unfair acts and Order No. 913 [1983]a)
practices subject of the formal investigation;
10.3. The Director General may by Regulations establish the procedure to govern the
(3) An assurance to recall, replace, repair, or refund the money value of implementation of this Section. (n)
defective goods distributed in commerce; and
Section 232. Appeals. - 232.1. Appeals from decisions of regular courts shall be
(4) An assurance to reimburse the complainant the expenses and costs governed by the Rules of Court. Unless restrained by a higher court, the judgment of
incurred in prosecuting the case in the Bureau of Legal Affairs. the trial court shall be executory even pending appeal under such terms and conditions
as the court may prescribe.
232.2. Unless expressly provided in this Act or other statutes, appeals from decisions the moment any of the acts stated in Subsection 155.1 or this subsection are
of administrative officials shall be provided in the Regulations. (n) committed regardless of whether there is actual sale of goods or services using
the infringing material. (Sec. 22, R.A. No 166a)
b) Prohibition of Importation
Section 166. Goods Bearing Infringing Marks or Trade Names. - No article of imported Section 156. Actions, and Damages and Injunction for Infringement. - 156.1. The
merchandise which shall copy or simulate the name of any domestic product, or owner of a registered mark may recover damages from any person who infringes
manufacturer, or dealer, or which shall copy or simulate a mark registered in his rights, and the measure of the damages suffered shall be either the
accordance with the provisions of this Act, or shall bear a mark or trade name reasonable profit which the complaining party would have made, had the
calculated to induce the public to believe that the article is manufactured in the defendant not infringed his rights, or the profit which the defendant actually
Philippines, or that it is manufactured in any foreign country or locality other than the made out of the infringement, or in the event such measure of damages cannot
country or locality where it is in fact manufactured, shall be admitted to entry at any be readily ascertained with reasonable certainty, then the court may award as
customhouse of the Philippines. In order to aid the officers of the customs service in damages a reasonable percentage based upon the amount of gross sales of the
enforcing this prohibition, any person who is entitled to the benefits of this Act, may defendant or the value of the services in connection with which the mark or trade
require that his name and residence, and the name of the locality in which his goods name was used in the infringement of the rights of the complaining party. (Sec.
are manufactured, a copy of the certificate of registration of his mark or trade name, to 23, first par., R.A. No. 166a)
be recorded in books which shall be kept for this purpose in the Bureau of Customs,
under such regulations as the Collector of Customs with the approval of the Secretary 156.2. On application of the complainant, the court may impound during the
of Finance shall prescribe, and may furnish to the said Bureau facsimiles of his name, pendency of the action, sales invoices and other documents evidencing sales.
the name of the locality in which his goods are manufactured, or his registered mark or (n)
trade name, and thereupon the Collector of Customs shall cause one (1) or more
copies of the same to be transmitted to each collector or to other proper officer of the 156.3. In cases where actual intent to mislead the public or to defraud the
Bureau of Customs. (Sec. 35, R.A. No. 166) complainant is shown, in the discretion of the court, the damages may be
doubled. (Sec. 23, first par., R.A. No. 166)
1. Civil 156.4. The complainant, upon proper showing, may also be granted injunction.
a) Infringement (Sec. 23, second par., R.A. No. 166a)
Section 155. Remedies; Infringement. - Any person who shall, without the
consent of the owner of the registered mark: Section 157. Power of Court to Order Infringing Material Destroyed. - 157.1 In
any action arising under this Act, in which a violation of any right of the owner of
155.1. Use in commerce any reproduction, counterfeit, copy, or colorable the registered mark is established, the court may order that goods found to be
imitation of a registered mark or the same container or a dominant feature infringing be, without compensation of any sort, disposed of outside the channels
thereof in connection with the sale, offering for sale, distribution, advertising of of commerce in such a manner as to avoid any harm caused to the right holder,
any goods or services including other preparatory steps necessary to carry out or destroyed; and all labels, signs, prints, packages, wrappers, receptacles and
the sale of any goods or services on or in connection with which such use is advertisements in the possession of the defendant, bearing the registered mark
likely to cause confusion, or to cause mistake, or to deceive; or or trade name or any reproduction, counterfeit, copy or colorable imitation
thereof, all plates, molds, matrices and other means of making the same, shall
155.2. Reproduce, counterfeit, copy or colorably imitate a registered mark or a be delivered up and destroyed.
dominant feature thereof and apply such reproduction, counterfeit, copy or
colorable imitation to labels, signs, prints, packages, wrappers, receptacles or 157.2. In regard to counterfeit goods, the simple removal of the trademark
advertisements intended to be used in commerce upon or in connection with the affixed shall not be sufficient other than in exceptional cases which shall be
sale, offering for sale, distribution, or advertising of goods or services on or in determined by the Regulations, to permit the release of the goods into the
connection with which such use is likely to cause confusion, or to cause mistake, channels of commerce. (Sec. 24, R.A. No. 166a)
or to deceive, shall be liable in a civil action for infringement by the registrant for
the remedies hereinafter set forth: Provided, That the infringement takes place at
Section 158. Damages; Requirement of Notice. - In any suit for infringement, the Section 161. Authority to Determine Right to Registration. - In any action
owner of the registered mark shall not be entitled to recover profits or damages involving a registered mark, the court may determine the right to registration,
unless the acts have been committed with knowledge that such imitation is likely order the cancellation of a registration, in whole or in part, and otherwise rectify
to cause confusion, or to cause mistake, or to deceive. Such knowledge is the register with respect to the registration of any party to the action in the
presumed if the registrant gives notice that his mark is registered by displaying exercise of this. Judgment and orders shall be certified by the court to the
with the mark the words '"Registered Mark" or the letter R within a circle or if the Director, who shall make appropriate entry upon the records of the Bureau, and
shall be controlled thereby. (Sec. 25, R.A. No. 166a)
defendant had otherwise actual notice of the registration. (Sec. 21, R.A. No.
166a)
Section 162. Action for False or Fraudulent Declaration. - Any person who shall
Section 159. Limitations to Actions for Infringement. - Notwithstanding any other procure registration in the Office of a mark by a false or fraudulent declaration or
representation, whether oral or in writing, or by any false means, shall be liable
provision of this Act, the remedies given to the owner of a right infringed under
in a civil action by any person injured thereby for any damages sustained in
this Act shall be limited as follows: consequence thereof (Sec. 26, R.A. No. 166)
A.M. No. 02-1-06-SC January 30, 2002 Section 5. Examination of applicant; record; confidentiality of proceedings. - The
application shall be acted upon within twenty-four (24) hours from its filing; The judge
RULE ON SEARCH AND SEIZURE IN CIVIL ACTIONS FOR INFRINGEMENT OF must, before issuing the writ, examine in the form of searching questions and answers,
INTELLECTUAL PROPERTY RIGHTS in writing and under oath or affirmation, the applicant and the witnesses he may
produce on facts personally known to them. The examination of the applicant and his
witnesses shall be recorded. Their sworn statements and their affidavits shall form part
Section 1. Coverage. - This Rule shall govern the provisional seizure and impounding
of the record of the case.
of documents and articles in pending and intended civil actions for the purpose of
preventing infringement and preserving relevant evidence in regard to alleged
infringement under Republic Act No. 8293, otherwise known as the Intellectual property The hearing on the application for the writ shall be held in the chambers of the judge.
Code of the Philippines, Article 50 of the Agreement on Trade Related Aspects of Court personnel shall maintain the confidentiality of the application
intellectual Property Rights, otherwise known as TRIPS and other related laws and proceeding.lawphi1.net
international conventions.
The court may require the applicant to give other information necessary for the
Section 2. The writ of search and seizure. - Where any delay is likely to cause identification of the articles and documents to be searched, inspected, copied or seized
irreparable harm to the intellectual property right holder or where there is demonstrable and the premises to be searched. Where feasible, it may direct the applicant to submit
risk of evidence being destroyed, the intellectual property right holder or his duly copies and photographs of the documents or articles to be seized and impounded.
authorized representative in a pending civil action for infringement or who intends to
commence such an action may apply ex parte for the issuance of a writ of search and Section 6. Grounds for the issuance of the order. - Before the Order can be issued, the
seizure directing the alleged infringing defendant or expected adverse party to admit evidence proffered by the applicant and personally evaluated by the judge must show
into his premises the persons named in the order and to allow the search, inspection, that:
copying, photographing, audio and audiovisual recording or seizure of any document
and article specified in the order. (a) the applicant is the right holder or his duly authorized representative;
Section 3. Where application filed. - The application shall be filed with any of the (b) there is probable cause to believe that the applicant's right is being
Regional Trial Courts of the judicial region designated to try violations of intellectual infringed or that such infringement is imminent and there is a prima facie case
property rights stationed at the place where the alleged violation occurred or is to for final relief against the alleged infringing defendant or expected adverse
occur, or me place to be searched, at the election of the applicant. Provided, however, party;
that where the complaint for infringement has a1ready been filed, the application shall
be made in the court where the case is rending.
(c) damage, potential or actual, likely to be caused to the applicant is
irreparable;
Section 4. Verified application and affidavits. - The applicant shall file a verified
application alleging the ground upon which it is based and the specific description and
location of the documents and articles to be searched, inspected, copied or seized and (d) there is demonstrable risk of evidence that the alleged infringing defendant
their value. It shall also state the names of the applicant, his representative, witnesses or expected adverse party may destroy, hide or remove the documents or
and counsel who will attend the search in the event that the application is granted. The articles before any application inter partes can be made; and
application shall be supported by affidavits of witnesses who personally know the facts
and by authenticated or certified documents. (e) the documents and articles to be seized constitute evidence of the alleged
infringing defendant's or expected adverse party's infringing activity or that
The application shall contain a certification against forum shopping as prescribed by they infringe upon the intellectual property right of the applicant or that they
Section 5, Rule 7 of the 1997 Rules of Civil Procedure. are used or intended to be used as means of infringing the applicant's
intellectual property right.
Section 7. When writ may issue. - If the judge is satisfied with the proof of facts upon Section 11. To whom writ shall be served. - The writ shall be served on the alleged
which the application is based, he shall issue the writ requiring the search, inspection infringing defendant or expected adverse party in the place to be searched.
or copying of the subject documents or articles or commanding the sheriff to take them
into his custody subject to the control of the court. The enforcement of the writ shall be If the alleged infringing defendant or expected adverse party cannot be found in the
supervised by an independent Commissioner to be appointed by the court. premises, the writ shall be served on his agent or representative. In the absence of an
agent or representative, it shall be served on the person in charge or in control of the
Section 8. Contents of the writ. - The writ shall contain the following: premises, or residing or working therein who is of sufficient age and discretion. If such
person is absent, the sheriff or proper officer shall post the papers on the premises and
(a) an order to the alleged infringing defendant, expected adverse party or to proceed with the enforcement of the writ.
the person who appears to be in charge or in control of the premises or
residing or working therein to permit the persons named in the writ to enter Section 12. Commissioner, duties, qualifications and fees. - The enforcement of the
into the premises for the purpose of searching, inspecting, copying, or writ shall be supervised by the independent Commissioner appointed by the court. In
removing from the premises and transferring to the custody of the sheriff and the performance of his duty, the Commissioner shall:
subject to the control of the court the subject documents and articles;
(a) give impartial advise to the alleged infringing defendant, expected adverse
(b) an order to the alleged infringing defendant, expected adverse party or to party or to the person in charge of the premises to be searched as to the
the person in charge or in control of the premises to disclose to the sheriff meaning and coverage of the writ;
serving the writ the location of the documents and articles subject of the writ;
(b) attempt to achieve agreement on a suitable search procedure;
(c) the period when the writ shall be enforced which in no case shall be more
than ten (10) days from the date of issuance by the court; (c) assess what documents or articles come within the terms of the writ;
(d) the names of the applicant or his agent or representative and the (d) ensure the accuracy of the list of documents and articles searched,
Commissioner who shall supervise the enforcement of the writ; and inspected, copied or seized by the sheriff;
(e) other terms and conditions that will insure the proper execution of the writ (e) prepare his own report on the search and seizure and verify and sign the
with due regard to the rights of the alleged infringing defendant or expected return prepared by the sheriff; and
adverse party.
(f) generally, assist in the proper execution of the writ.
It shall also contain a warning that violation of any of the terms and conditions of the
writ shall constitute contempt of court.
The Commissioner shall be a member of the Philippine Bar and of proven competence,
integrity and probity. He shall receive such reasonable compensation as may be
Section 9. Bond and its conditions. - The applicant shall be required to post a cash determined by the court which can be charged as cost of suit.
bond, surety bond or other equivalent security executed in favor of the defendant or
expected adverse party in a reasonable amount to be fixed by me court in its order
Section 13. Search to be conducted in the presence of defendant, his representative,
granting me issuance of a writ of search and seizure. The bond shall be conditioned on
the undertaking of the applicant that he will pay all the costs which may be adjudged to person in charge of the premises or witnesses. - The premises may not be searched
defendant or expected adverse party and all damages which me latter may sustain by except in the presence of the alleged infringing defendant, expected adverse party or
reason of me issuance of the writ. his representative or the person in charge or in control of the premises or residing or
working m therein who shall be given the opportunity to read the writ before its
enforcement and seek its interpretation from the Commissioner. In the absence of the
Section 10. When writ shall be served. - The writ shall be served only on weekdays latter, two persons of sufficient age and discretion residing in the same locality shall be
and from 8 o'clock in the morning to 5 o'clock in the afternoon. However, the court may allowed to witness the search or in the absence of the latter, two persons of sufficient
direct that the writ be served on any day and any time for compelling reasons stated in age and discretion residing in the nearest locality.
the application and duly proved.
Section 14. Manner of search and seizure; duties of the sheriff. - Upon service of the (b) by Copying its contents in a suitable device or disk provided by the
writ in accordance with section 11 hereof, sheriff, under the supervision of the applicant; or
Commissioner, shall search for the documents and articles specified in the writ, and
take them in his custody subject to the control of the court. (c) by printing out the Contents of the disk or device with a the use of a printer.
If the subject articles are not capable of manual delivery, the sheriff shall attach to them When the computer disks or storage devices cannot be readily removed from the
a tag or label stating the fact of seizure and warning all persons from tampering with computer to which they are fitted, the sheriff may take the subject computer from the
them. custody of the alleged infringing defendant, expected adverse party or person in
charge or in control of the premises or residing or working therein.
The sheriff shall, in the presence of the applicant or his representative, and under the
supervision of the Commissioner, prepare a detailed list of the seized documents and Section 17. Sheriff's return. - The sheriff who executed the writ shall, within three (3)
articles. He shall give an accurate copy of the same to the alleged infringing defendant, days from its enforcement, make a verified return to the court which issued the writ.
expected adverse party, his agent or representative, to the person in charge or in The return shall contain a full statement of the proceedings under the writ and a
control of the premises or residing or working therein in whose presence the search complete inventory of the documents and articles searched, inspected or copied or
and seizure were made. In the absence of the person in charge or in control of the seized and impounded, with copies served on the applicant, the defendant or expected
premises or residing or working therein, the sheriff must, in the presence of at least two adverse party and the Commissioner.
witnesses of sufficient age and discretion residing in the same locality, leave a copy of
the receipt in the place in which he found the seized property. Where no witnesses are
If not all of the documents and articles enumerated in the order and writ were seized,
available in the same locality, the copy of the receipt shall be left by the sheriff in the
the sheriff shall so report to the court and state is the reasons therefor. All objections of
presence of two witnesses residing in the nearest locality. The applicant or his
representative and the Commissioner shall also be given a copy of the receipt. the defendant, expected adverse party or person in charge of the premises on the
manner and regularity of the service of the writ shall be included by the sheriff in his
return.
After the sheriff has taken possession of the documents and articles, he shall deliver
them to a bonded warehouse or government warehouse for safekeeping. The applicant
Section 18. Discharge of writ by the defendant or expected adverse party. - Without
or his representative shall be allowed access to said materials for the purpose of
examining them. waiting for return to be filed by the sheriff, the defendant, expected adverse party or the
party whose property has been searched, inspected, copied or seized may file a
motion with the court which issued the writ for its discharge with prayer for the return of
The applicant shall be responsible for the necessary expenses incurred ill the seizure the documents and articles seized.
and safekeeping of the documents and articles in a bonded warehouse or government
warehouse.
The writ may be discharged on any of the following grounds:
Section 15. Use of reasonable force to effect writ. - The sheriff, if refused admittance
(a) that the writ was improperly or irregularly issued, or excessively enforced;
to the premises after giving notice of his purpose and authority or in absence of the
alleged infringing defendant or expected adverse party, his agent or representative, or
person in charge or in control of the premises or residing or working therein who is of (b) that the bond is insufficient;
sufficient age and discretion, may use reasonable force to gain entry to the premises or
any part of the building or anything therein, to enforce the writ or to liberate himself or (c) that tile safeguards provided in the writ have been violated by the applicant
any person lawfully aiding him when unlawfully detained therein. or the sheriff; or
Section 16. Seizure of computer disks other storage devices. - The seizure of a (d) that the documents and articles seized are not infringing copies or means
computer disk or any storage device may be executed in any of the following manner: for making the materials alleged to infringe the intellectual property right of the
applicant.
(a) by the physical taking thereof;
The writ may be discharged in a summary hearing by the court after notice to the
applicant, the sheriff and the Commissioner.
If the court finds that the bond is insufficient, it shall order a. new bond to be filed by the The damages provided for in this section shall be independent from the damages
applicant within a reasonable time. The discharge of the writ based on the insufficiency claimed by the defendant in his counterclaim.
of the bond may only be made if the applicant fails to post the new bond within the
period fixed by the court. Section 22. Judgment. - If it appears after trial that the seized documents and articles
are found to infringe the intellectual property right of the applicant or that they
Section 19. Proceedings on return. - Five (5) days after issuance of the writ, the constitute the means for the production of infringing goods, the court shall order their
issuing judge shall ascertain if the writ has not been served or the return has been destruction or donation to charitable, educational or religious institutions with the
made by the sheriff. If the writ was not served or no return was made, it shall summon prohibition against bringing the same into the channels of commerce. In the latter case,
the sheriff and the applicant to whom the writ was issued and require them to explain infringing trademarks or trade names found on labels, tags and other portions of the
why the writ was not served or why no return has been filed as the case may be. If the infringing materials shall be removed or defaced before the donation. In no case shall
return has been made, the judge shall, after notice to the applicant, the alleged the infringing materials be returned to the defendant.
infringing defendant or expected adverse party, the sheriff and the Commissioner,
ascertain whether the provisions of this Rule and applicable laws have been complied If the court finds no infringement, the seized materials shall be immediately returned to
with. the defendant.
Section 20. Failure to file complaint. - The writ shall also. Upon motion of the expected Section 23. Direct filing, provisional docketing and deposit of prescribed filing fee. -
adverse party, be set aside and the seized documents and articles returned to the The Regional Trial Courts specially designated to try violations of intellectual property
expected adverse party if no case is filed with the appropriate court or authority within rights shall keep a distinct and separate logbook for writs of search and seizure. The
thirty-one (31) calendar days from the date of issuance of the writ. application for a writ of search and seizure filed directly with the said courts shall be
given a provisional docket number. The prescribed filing fee shall be deposited with the
Section 21. Claim for damages. - Where the writ is discharged on any of die grounds branch clerk of court and properly receipted for and transmitted to the Clerk of Court
provided in this Rule, or where it is found after trial that there has been no infringement within twenty-four (24) hours from issuance of the order granting or denying the
or threat of infringement of an intellectual property right, the court. Upon motion of the application for said writ. If a formal complaint is filed thereafter, the Clerk of Court may
alleged infringing defendant or expected adverse party and after due hearing, shall make a. reassessment of the filing fee.
order the applicant to compensate the defendant or expected adverse party upon the
cash bond, surety bond or other equivalent security for any injury or damage the latter Section 24. Separate logbook. - In every court, there shall be a logbook under the
suffered by the issuance and enforcement of the writ. Should the damages exceed the custody of the Clerk of Court wherein shall be docketed and entered within twenty-four
amount of the bond, the applicant shall be liable for the payment of the excess. (24) hours after the issuance or denial of the writ of search and seizure, the filing of
such application and other particulars thereof. All the subsequent proceedings
When a complaint is already filed in court, the motion shall be filed with the same court concerning the writ of search and seizure shall be faithfully recorded in the separate
during the trial or before appeal is perfected or before judgment becomes executory, logbook.
with due notice to the applicant, setting forth the facts showing the defendant's right to
damage's and the amount thereof. The award of damages shall be included in the Section 25. Effect of violation. - A violation of any of the terms and conditions of the
judgment in the main case. order and the writ of search and seizure or any provision of this Rule shall constitute
contempt of court.
Where no complaint is filed against the expected adverse party, the motion shall be
filed with the court which issued the writ. In such a case, the court shall set the motion Section 26. Writ not a bar to other measures. - The availment of the writ of search and
for summary hearing and immediately determine the expected adverse party's right to seizure under this Rule shall not prevent the applicant from resorting to other
damages. provisional measures or remedies provided in existing laws and procedural rules.
A judgment in favor of the applicant in its principal claim, should not necessarily bar the Section 27. Effectivity. - This Rule shall take effect on February 15, 2002 after its
alleged infringing defendant from recovering damages where he suffered losses by publication in two (2) newspapers of general circulation not later than January 30,
reason of the wrongful issuance or enforcement of the writ. 2002.