US firm set to file counterfeiting raps

US-based Caterpillar, Inc. is set to file 17 additional charges against a local businessman for violations of certain provisions of the Philippines’ Intellectual Property Rights (IPR) Code. The raps come in the wake of recent raids conducted by the National Capital Region Police Office (NCRPO) of retail outlets selling suspected counterfeit Caterpillar- and CAT- branded products.

The Department of Justice (DOJ) had earlier already caused the filing of some 37 similar cases of violations of the IPR code provisions pertaining to unfair competition of internationally-famous trademarks against local businessman Manolo Samson before various courts in Metro Manila. Some 10 other criminal complaints for the same violations against the local businessman are already being heard. The cases stemmed from complaints by the US firm that Samson had allegedly copied its product and brand designs and is allegedly selling these items in the local market as "licensed Caterpillar merchandise."

Samson had appealed the indictments to the DOJ for dismissal of the raps. Justice Secretary Hernando Perez, however, denied the appeal.

Caterpillar had earlier warned local buyers that its authentic licensed product line consisting of heavy-duty shoes, clothes and leather goods are not sold in the Philippines, except in select duty-free shops.

The additional 17 cases stem from recent raids on outlets selling suspected counterfeit Caterpillar and CAT-branded products by elements of the NCRPO.

Caterpillar cited the move by the Justice Secretary Hernando Perez and Chief State Prosecutor Jovencito Zuno to junk an appeal filed by Samson before the DOJ. The US firm said Perez and Zuno’s decision to pursue the cases "is a vital sign that the Philippine government respects international covenants on intellectual property rights (IPR)."

The Philippines is currently among some 15 countries in the priority watchlist of notorious IPR violators. While inclusion in the list entails no trade sanction, it requires the United States Trade Representative to closely monitor the country’s compliance with international IPR laws.

Leading IPR lawyer Gilbert Reyes of the Poblador, Bautista and Reyes Law Offices earlier said many international investors "have become wary about introducing their products in the country or setting up production in the Philippines."

This appears to be due to the high risk that their products and brands will be illegally copied and sold in the local market.

"In many instances, the Philippines is bypassed altogether because the local market is already flooded with counterfeits even prior to the actual introduction of these products by the international investors to the local market," Reyes said.