CA indicts Kentex execs for trademark infringement

MANILA, Philippines — The Court of Appeals (CA) on Monday found probable cause to order the indictment of the executives of Kentex Manufacturing Corporation for trademark infringement.

The appellate court's Fifth Division granted the petition for review filed by Sao Paola Alpargatas SA (SPASA) on a complaint based on the sandals, allegedly imitations or copies of Brazilian-based brand "Havaianas" sandals they sell to the public.

SPASA filed a complaint for trademark infringement and damages before the Office of the City Prosecutor of Caloocan City against Ong King Guan and Mary Grace Ching, Kentex's general manager and corporate secretary, respectively.

SPASA argued that it is the registered owner of the mark "Havaianas," whose products are made available through Terry SA Inc., SPASA’s exclusive distributor in the Philippines.

The company argued that Kentex's "Havanas" sandals are imitations of the marks owned and registered under the name of SPASA.

The Caloocan City prosecutor's office decided against the complaint, prompting the company to elevating the case to the Court of Appeals.

The CA said in its ruling that then Justice Secretary Leila De Lima committed grave abuse of discretion in affirming the dismissal of the petitioner's complaint before the Caloocan City prosecutor's office.

"In the present case, we are convinced that there clearly exist facts sufficient to engender a well-founded belief that the offense of trademark infringement has been committed and that private respondents [Guan and Ching] are probably guilty thereof," the CA said in its Oct. 14, 2015 decision.

"The [OCP-Caloocan City] is ordered to file an Information charging [Guan and Ching], as owners/officers/employees of Kentex Manufacturing Corporation (Kentex) with trademark infringement under Section 155 of Republic Act No. 8293, as amended," it added.

The CA reversed and set aside the resolutions of the Department of Justice dated May 28, 2013 and Dec. 5, 2013 in the 10-page decision penned by Associate Justice Ramon Paul Hernando with concurring magistrates Associate Justices Jose Reyes and Stephen Cruz.

Apart from trademark infringement, Kentex also made headlines due to the fire of its factory in Valenzuela City that claimed 72 lives in May. It caused public outrage over the allegedly unsafe conditions of employees of the slippers factory.