P10-M fake coffee products seized

A team composed of National Bureau of Investigation (NBI) and Philippine National Police (PNP) personnel conducted a raid yesterday afternoon that yielded fake Nescafe products worth approximately P10 million from a warehouse in Valenzuela City.

NBI-National Capital Region (NCR) regional director Ruel Lasala said the PNP-NBI team allegedly found fake Nescafe Classic Coffee and Coffeemate products, raw coffee granules and wrappers and packaging materials in quantities large enough to fill a two 40-foot container vans.

Charges of violation of Section 168, in relation to Section 170 of Republic Act No. 8293 or the Intellectual Property Code of the Philippines were lodged against Filipino-Chinese nationals Clifford Charlie Hong, president of Hoit Realty Corp., the lessee of the warehouse, and Charlie Chua, a representative of Bayview Marketing.

The warehouse, known as Building A, is located at 239 HHB Industrial Compound on Angeles St. in Paso de Blas, Valenzuela City.

On March 29, the Presidential Anti-Organized Crime Commission (PAOCC) and National Anti-Environmental Crime Task Force (NAECTAF) conducted a search of the warehouse and found illegal logs. It was then that they also found the fake Nescafe products, however, they had no search warrant for the fake coffee and creamer products, so the NBI applied for a search warrant from Executive Judge Reynaldo Ros, Branch 33 of the Manila City Regional Trial Court (MCRTC).

"We believe there are several groups, mostly Filipino-Chinese, in the country who make a profit out of manufacturing and distributing fake Nestle products," Lasala said. "In December 2006, the NBI-NCR conducted an operation that seized an estimated P40 million worth of fake coffee."

The manufacturing plant raided in December last year was actually a residence in Quezon City. The storage facility, on the other hand, is located in Caloocan City.

The NBI-NCR chief, however, said they are not sure if the warehouses in Quezon City and Valenzuela City are connected to each other in any way.

Meanwhile, the PNP’s Criminal Investigation and Detection Group (CIDG) said it confiscated some P84 million worth of counterfeit Louis Vuitton and Lacoste items in back-to-back raids in the cities of Manila and Taguig last month.

During the raids, the CIDG confiscated P80 million worth of Louis Vuitton knockoffs from 17 stalls in Harrison Plaza in Manila on March 26 and P4 million worth of fake Lacoste items from seven stalls at the Market, Market! shopping mall in Taguig on March 29.

"We are very concerned that there is a significant number of pirated goods openly sold inside large shopping malls," Senior Superintendent Noel delos Reyes said.

The Intellectual Property Office of the Philippines (IP Philippines) is the lead coordinating agency of the National Committee for Intellectual Property Rights (NCIPR).

Since its creation in 2005, the NCIPR has confiscates over P3.3 billion worth of pirated goods.

"Upholding intellectual property rights is not the only responsibility of the agencies under the committee," IP Philippines director-general Adrian Cristobal Jr. said. "It is the responsibility of everyone because it is a public interest. Fake goods undermine legitimate businesses, dampens creativity and innovation and may even threaten the lives of consumers in the case of counterfeit medicines and cosmetics."

President Arroyo ordered NCIPR-member agencies last year to ensure the enforcement of contracts of lease prohibiting shopping mall tenants from engaging in illegal activities, such as selling pirated goods. Mall owners face criminal, civil or administrative liability if it is proven that pirated goods are sold in their premises.

Charges were filed against the owners and employees of stalls where the fake products were seized. Those arrested in the Market, Market! raid were identified as Pacita Romero, Marife Barcenal, Jane Solano, Catherine Clarito, Lydia Toc and Ma. Teresita Palanas.

Investigators are still trying to locate Seigfried Abrera, the alleged organizer of the tiangge (flea market) in Harrison Plaza, for questioning. They have also questioned the two shopping malls’ officials regarding these illegal operations in their premises. – With Theo Agcaoili and Elisa Osorio