De Lima clears Red Bull maker, distributor in piracy raps

MANILA, Philippines - Justice Secretary Leila de Lima has cleared officers of the Bangkok-based manufacturer of Red Bull, a popular energy drink, and its local distributor on charges of violation of the country’s intellectual property and food regulatory laws.

De Lima granted the motion for reconsideration filed by T.C. Pharmaceutical Industries Company Ltd. (TCPI) and its authorized importer and distributor Maryland Distributors Inc. (MDI) and reversed the resolution of the Department of Justice last June.

De Lima’s ruling cleared Bangkok-based TCPI officers Pavana Langthara, Suthirat Yoovidhya, Supreeya Yoovidhya, Nucharee Yoovidhya, and Visuit

Chiemkitchavarote; and MDI officers Gino Baltao, Gina Tolentino, Ramoncito Abad, Benjamin Ros, and Nelson Escobar.

In a seven-page resolution promulgated last Dec. 5, the DOJ chief said there was no probable cause to indict TCPI for violation of Republic Act 8293 (Intellectual Property Code) and RA 3720 (Food, Drug and Cosmetic Act) as alleged by complainant Energy Food and Drinks Inc. (EFDI), the former distributor of Red Bull in the country.

As a result, the DOJ will withdraw the case filed against respondents before the Legazpi City regional trial court by EFDI, which complained that there was a proliferation of Red Bull products with “MDI” stickers superimposed on the portion of the label that identified EFDI as the product’s exclusive distributor.

The new DOJ ruling also effectively allows TCPI to choose its authorized importer and distributor in the Philippines. The Red Bull manufacturer is one of the largest companies and foreign investors in the Southeast Asian region.

Foreign investors are monitoring the progress of the case, because it would have a significant impact on the relations of global manufacturers and their distributors in the Philippines.

De Lima said the facts of the case do not show that TCPI passed off Red Bull products it manufactures for those products EFDI deals with or distributes. 

De Lima said the stickers on the label of the Red Bull products distributed by MDI inform the public of the source of the products and which firm actually distributes them in the Philippines.

“It must be stressed that the goods in question are Red Bull products which come from one and the same manufacturer, TCPI,” she said.