Red Bull maker seeks overturn of DOJ resolution

MANILA, Philippines - The firm behind Red Bull energy drink wants the Department of Justice (DoJ) to overturn a resolution ordering the filing of charges against the company’s officials citing that it did not violate the Intellectual Property Code.

T.C. Pharmaceutical Industries Co. Ltd. (TCPI) said in a statement yesterday it was surprised that a resolution was issued by DOJ undersecretary Jose Vicente Salazar ordering the Legaspi City prosecutor’s office to file charges against the company’s officials as well as those of Maryland Distributors, Inc. (MDI) for alleged violation of the Intellectual Property Code.

“We decry what we perceived to be an unjust and erroneous ruling issued by the DoJ relative to the resolution issued by undersecretary Jose Vicente Salazar finding the officers of MDI and TCPI liable for alleged violation of the country’s Intellectual Property Code and the Food, Drug and Cosmetic Act and directing the Legazpi City prosecutor to file the appropriate information,” the firm said.

It noted that the Task Force on Anti-Intellectual Property Piracy of the DOJ Manila ruled in March 2011 there is no crime of false designation or origin, false description or representation under Section 169 of the Intellectual Property Code.

The TCPI also said that even the Office of the Secretary of the DOJ ruled in its resolution dated May 24, 2010 there was no unfair competition to speak of as the Red Bull products are genuine as certified by no less than the manufacturer itself.

“How can we be remotely said to be in violation of the said law, when we are in truth and in fact, the owners of the intellectual property right, which in this case is the Red Bull brand,” TCPI also said.

The resolution was issued by the justice department following a petition filed by Energy Food and Drinks, Inc. (EFDI), a local firm appointed by TCPI in March 2003 to serve as exclusive distributor of Red Bull products in the country.

The petition was filed by EFDI after it found that Red Bull products, with MDI stickers on the part of the label that identified the former as exclusive distributor, are proliferating in the market.

The justice department’s resolution issued on June 21 reversed the decision of the prosecutor’s office earlier dismissing the complaint filed by EFDI.

The department said that as exclusive distributor, EFDI’s name must be placed on the label of Red Bull products.

The department noted that in the said case, labels of Red Bull products were found to have been tampered with.

The department said it also found conspiracy among officers of TCPI and MDI as they acted in unison in violating the property rights of EFDI.

TCPI said though it has previously terminated its contract with EFDI for just cause and appointed MDI to be the new exclusive distributor of the products.