PHILIPPINES
PHILIPPINES
THE SUPREME COURT HAS ISSUED ITS NEW PROCEDURES COVERING IP CASES WHICH ALLOW FOR DESTRUCTION OF SEIZED GOODS IN CRIMINAL OR CIVIL ACTIONS EVEN WHILE THE CASES ARE PENDING.
of duties and taxes of foreign articles openly offered for sale or kept in storage, and if no such evidence can be produced, such articles may be seized and subjected to forfeiture proceedings”.
An example of the exercise of the BOC’s visitorial power of the BOC is Mission Order No. IG-050812-028, conducted by its Intelligence Group (IG) in May 2012, against warehouses in Pasay City suspected of storing counterfeit footwear. Te IG notified the IP holders’ agents who witnessed the seizure of fake Adidas, Bebe, Havaianas and Vans footwear with a value of about $625,000. Te seized articles were subjected to forfeiture proceedings, and are currently awaiting resolution of the Law Division.
Te BOC has cause for celebration these days. On January 29, 2013, through its Customs Intelligence and Investigation Service (CIIS), the IP Division of the BOC seized rolls of fake Louis Vuitton, Chanel and Mickey Mouse fabrics, and fake Ajinomoto seasoning mix valued at about $8 million, all coming from China and entering the Philippines via the port of Manila.
In 2012, the IP Division confiscated more than $35 million worth of counterfeit goods in the various major ports in the Philippines, making the BOC the second-highest apprehending unit in the National Committee on IP Rights. Last year also, the BOC got its first two smuggling convictions when a Manila regional trial court sentenced an importer and his broker to imprisonment for eight years and one day to nine years, plus a fine and costs; the other conviction was meted out by the Court of Tax Appeals. Te accused have appealed against their convictions. Inspired by this development, the BOC has quickly filed criminal actions against the importer and broker of the fake fabrics.
Conclusion
Te IP holder has the choice of several remedies to enforce its rights in the Philippines. Under the IP Code, an infringement and/or unfair
92 World Intellectual Property Review e-Digest 2013
www.worldipreview.com
competition action can be criminal, civil or administrative and may be filed with the special commercial courts or with the IP Office in the case of an administrative action. Raids can be conducted under a criminal or civil action. Provisional remedies such as a request for preliminary injunction are available in both the courts and at the IP Office. Tese actions are adversarial in nature and may take two to five years to complete, excluding appeals. Te Supreme Court has issued its new procedures covering IP cases which allow for destruction of seized goods in criminal or civil actions even while the cases are pending, which could reduce the warehousing expenses of the IP holder.
Still, many IP holders find litigation costs to be burdensome. An anti- counterfeiting programme which includes a combination of border control measures, and filing infringement and unfair competition actions, may be a more effective means of addressing the problem of counterfeiting.
Editha R. Hechanova is managing partner of Hechanova Bugay & Vilchez law offices and CEO of Hechanova & Co, Inc. She can be contacted at:
editharh@hechanova.com.ph
Editha R. Hechanova’s experience covers both contentious and non-contentious IP matters including border control, licensing, due diligence, trademark and patent prosecution, copyright, and patent and trademark litigation. Hechanova is an accredited court annexed mediator at the Court of Appeals and a mediator and arbitrator at the IP Office of the Philippines.
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