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to abandon the same. In addition to this initial period of validity, certificates of registration may be renewed for periods of 20 years.

Philippine law permits owners of registered trade-marks, service marks, and trade names to assign the same, but the assignment must be in writing and acknowledged before a notary public. It must also be reported to the Patent Office within 3 months after its date or it will be void against any subsequent purchaser for valuable consideration. Upon request, the Director of the Patent Office may issue to the assignee a new certificate of registration in his name for the unexpired part of the original period of validity of the mark or

name.

Briefly stated, the infringement of a trade-mark or trade name includes the use, counterfeiting, copying, or reproduction by any person without the consent of the registrant of any registered mark or trade name in connection with the sale, offering for sale, or advertising of any goods, business, or services such as is likely to cause confusion or mistake or to deceive purchasers or others as to the sources of origin of such goods or services or the identity of such business.

Owners of registered marks and names are also protected from infringement from foreign sources by provisions of Philippine law prohibiting the importation into the Philippines of any article (a) copying or simulating the name of a domestic product or manufacturer or dealer or of any manufacturer or dealer in any foreign country which by treaty, convention, or law affords similar privileges to citizens of the Philippines; (b) copying or simulating a mark or trade name registered in the Philippines; or (c) bearing a mark or trade name calculated to induce the public to believe that the article is manufactured in the Philippines or that it is manufactured in any foreign country or locality other than the country or locality in which it is in fact manufactured. Likewise, the importation of goods with false designation of origin or with false description is also prohibited.

The foregoing and additional provisions of Philippine law concerning or closely related to trade-mark infringement are contained in this book in greater detail in the following section describing fair trade laws.

Damages for infringement of the rights of a registrant may be recovered in a civil suit in an amount measured either by the reasonable profit the registrant could have made were it not for the infringement or by the actual profit made by the infringer from the infringement. If the measure of damages cannot be readily ascertained with reasonable certainty, the amount of damages may be calculated to be a reasonable percentage of the amount of gross sales or the value of the services realized by the infringer. Double damages may be awarded in cases where actual intent to mislead the public or to defraud the registrant is established. No damages may be recovered upon an

infringement, however, if the registrant failed to give notice that his mark was registered by displaying with the same the words "Registered in the Philippine Patent Office" or "Reg. Phil. Pat. Off." unless the infringer had actual notice of the registration.

Restrictions on the rights of trade-mark, tradename, or service-mark owners in the Philippines are provided in legislation setting forth the procedure for the cancellation of certificates of registration. The law on this subject provides that a cancellation may be applied for by any person who has been damaged by the registration of the mark or trade name on any of the following grounds: 1. That the registered mark or trade name becomes the common descriptive name of an article or substance on which the patent has expired; 2. That it has been abandoned;

3. That the registration was obtained fraudulently or contrary to provisions of the law;

4. That the registered mark or trade name has been assigned and the assignee is using it to misrepresent the source of the goods, business, or services in connection with which the mark or trade name is used; or

5. That cancellation is authorized by other provisions of Republic Act No. 166.

As in the case of the patent law, the Director of Patents enforces the trade-mark law, and practice before the Director is limited to those persons who are recognized by the Patent Office. Decisions of the Director of Patents affecting trade-marks are appealable to the Supreme Court of the Philippines.

The basic law affecting trade-mark registration in the Philippines is contained in Republic Act No. 166, as amended by Republic Act No. 865.

ANTITRUST AND FAIR TRADE LAWS

Antitrust Laws

Monopolies and combinations in restraint of trade have been prohibited in the Philippines since December 1, 1925, the effective date of the Act of the Philippine Legislature No. 3247. Section 4 of this law provides that any person who shall be injured in his business as a result of the monopoly or combination in restraint of trade may recover from the perpetrators thereof threefold the damages sustained by him and the costs of suit, including a reasonable attorney's fee.

The present penal provisions to be applied against monopolies and combinations in restraint of trade are contained in article 186 of the Revised Penal Code wherein it is prescribed that a penalty of imprisonment for a period of from 6 months. and 1 day to 2 years and 4 months, or a fine ranging from 200 to 6,000 pesos, or both, shall be imposed

upon:

1. Any person who shall enter into any contract or agreement or shall take part in any conspiracy or combination in the form of a trust or otherwise, in restraint of trade or commerce or to prevent by artificial means free competition in the market.

2. Any person who shall monopolize any merchandise or object of trade or commerce, or shall combine with any other person or persons to monopolize said merchandise or object in order to alter the prices thereof by spreading false rumors or making use of any other artifice to restrain free competition in the market.

3. Any person who, being an importer of any merchandise or object of commerce from any foreign country or from the United States, shall combine in any manner with other persons for the purpose of making transactions prejudicial to lawful commerce, or of increasing the market price in any part of the Philippine Islands of any article or articles imported or intended to be imported into said islands, or of any article in the manufacture of which an imported article is used.

Any property possessed under such contract or combination shall be forfeited to the Government. When the offense is committed by a corporation or association, the president and each one of the directors or managers of the organization, or (in the case of a foreign corporation or association) its agent or representative in the Philippines, who shall have knowingly permitted or failed to prevent the commission of the offense, shall be held liable as principals.

Fair Trade Laws

In the Philippines, fair trade legislation has been closely associated with the rights accruing to owners of trade-marks, trade names, and servicemarks. Consequently, Republic Act No. 166, which provides for the registration of such property, declared the following persons to be guilty of unfair competition:

"(a) Any person, who in selling his goods shall give them the general appearance of goods of another manufacturer or dealer, either as to the goods themselves or in the wrapping of the packages in which they are contained, or the devices or words thereon, or in any other feature of their appearance, which would be likely to influence purchasers to believe that the goods offered are those of a manufacturer or dealer other than the actual manufacturer or dealer, or who otherwise clothes the goods with such appearance as shall deceive the public and defraud another of his legitimate trade, or any subsequent vendor of such goods or any agent of any vendor engaged in selling such goods with a like purpose;

"(b) Any person who by any artifice, or device, or who employs any other means calculated to induce the false belief that such person is offering the services of another who has identified such services in the mind of the public; or

"(c) Any person who shall make any false statement in the course of trade or who shall commit any other act contrary to good faith of a nature calculated to discredit the goods, business or services of another.”

The specific punishment for persons committing offenses involving unfair competition or other offenses relating to trade-marks, trade names, or service marks is contained in articles 188 and 189 of the Revised Penal Code. As currently in force, these provisions read as follows:

"Article 188. Substituting and altering trademarks, trade names, or service marks. The penalty of prision correccional in its minimum period (from six months and one day to two years and four months) or a fine ranging from 500 to 2,000 pesos, or both, shall be imposed upon:

"1. Any person who shall substitute the trade. name or trademark of some other manufacturer or dealer or a colorable imitation thereof, for the trade name or trade-mark of the real manufacturer or dealer upon any article of commerce and shall sell the same;

"2. Any person who shall sell such articles of commerce or offer the same for sale, knowing that the trade name or trade-mark has been fraudulently used on such goods as described in the preceding subdivision;

"3. Any person who in the sale or advertising of his services shall use or substitute the service mark of some other person, or a colorable imitation of such mark; or

"4. Any person who, knowing the purposes for which the trade name, trade-mark, or service mark of a person is to be used, prints, lithographs, or in any way reproduces such trade name, trademark, or service mark, or a colorable imitation thereof, for another person, to enable that other person to fraudulently use such trade name, trademark, or service mark on his own goods or in connection with the sale or advertising of his services.

"Article 189. Unfair competition, fraudulent registration of trade name, trade-mark, or service mark, fraudulent designation of origin, and false description. The penalty provided in the next preceding article shall be imposed upon:

"1. Any person who, in unfair competition and for the purpose of deceiving or defrauding another of his legitimate trade or the public in general, shall sell his goods giving them the general appearance of goods of another manufacturer or dealer, either as to the goods themselves, or in the wrapping of the packages in which they are contained, or the device or words thereon, or in any other feature of their appearance which would be likely to induce the public to believe that the goods offered are those of a manufacturer or dealer other than the actual manufacturer or dealer, or shall give other persons a chance or opportunity to do the same with a like purpose.

"2. Any person who shall affix, apply, annex, or use in connection with any goods or services, or

any container or containers for goods, a false designation of origin, or any false description or representation, and shall sell such goods or services.

"3. Any person who, by means of false or fraudulent representations or declarations, orally or in writing, or by other fraudulent means shall procure from the patent office or from any other office which may hereafter be established by law for the purposes, the registration of a trade name, trade-mark, or service mark, or of himself as the owner of such trade name, trade-mark, or service mark, or an entry respecting a trade name, trademark, or service mark."

An additional penal provision of Philippine law affecting persons committing offenses involving unfair competition is contained in article 187 of

the Revised Penal Code, which penalizes by imprisonment of from 6 months and 1 day to 6 years, or fine ranging from 200 to 1,000 pesos, or both, persons guilty of the importation or sale of any article or merchandise made of gold, silver, or other precious metal, or their alloys, with stamps, brands, or marks which fail to indicate the actual fineness or quality of the metal or alloy.

Fraudulent indication of actual fineness or quality is determined when testing of the article shows a deficiency from the fineness or quality thereon engraved, printed, stamped, labeled, or attached, as follows: More than one-half karat, if made of gold; more than four one-thousandths, if made of silver; more than three one-thousandths, for gold watchcases and gold flatware.

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APPENDIX A

Principal Industrial Groups

In terms of the amount of foreign and domestic capital which the Philippines may be expected to absorb, manufacturing industries appear to offer prospective foreign investors the widest variety of possibilities of any segment of the country's economy. This appendix, which primarily summarizes current information regarding Philippine manufactures,1 is included to add details to the overall industry picture as given in chapter VII.

In addition to official and semiofficial sources, press reports were heavily used in compiling this appendix. It should be recognized that the information is uneven, more complete for some industries than for others. In many instances companies are cited, particularly with respect to recent developments. These statements are based primarily upon press items; they have not been checked with the named companies, but are believed to be generally correct.

FOODSTUFFS AND BEVERAGES

The principal branches of the foodstuffs industry in the Philippines are the processing of sugar and coconuts and the canning of pineapples, all predominantly for export markets. Aside from these manufactures, there are numerous processing and packaging plants which operate on a limited scale. These include rice mills, of which there are more than 8,000 scattered throughout the country, and abattoirs, which to a large extent are essentially farm operations. In addition there are plants for roasting and packing coffee; dairies and bakeries; small candy factories; and plants for making noodles and macaroni and processing other food products. The production of beverages is of considerable importance, output in 1953 having been valued at about 134 million pesos.

Sugar Processing

This is one of the basic Philippine industries. Production of centrifugal sugar in recent years has been about 1.1 million short tons (see table I), produced in 28 centrals chiefly on Luzon and Negros. Brown sugars (muscovado and panocha) are produced throughout the country. The output of these native sugars has averaged from 35,000 to 40,000 tons in recent years, a level below that of the prewar period; decreased domestic demand for these products and the greater availability of centrifugal and refined sugar probably account for the smaller production.

No refined sugar was produced in the first postwar year, 1946. According to the Philippine Sugar Quota Office and Philippine Sugar Association, output of refined sugar was as follows in subsequent years:

1 For further details respecting 10 important industries— textile, pulp and paper, iron and steel, fuels, clay and ceramic products, canning, rubber and rubber products, glass, chemicals and chemical products and leather tanning-see Industrial Philippines, A Cross Section, Philippine Council for United States Aid, 1953.

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Virtually all of the refined sugar is consumed domestically although there have been small exports. Production in 1951 was divided between the Victorias Milling Co., a privately owned refinery located in Negros Occidental, and the Government-owned Insular Sugar Refining Co., located in the suburbs of Manila. The former accounted for about two-thirds and the latter for one-third.

Most of the centrifugal sugar is exported. The United States, which guarantees a quota of 952,000 short tons under the trade agreement with the Philippines and the United States Sugar Act, is the major market. The sugar quota was not filled in postwar years through 1953 although production, after a period of rehabilitation from wartime destruction, has reached prewar levels. Exports to the United States did, however, reach the quota in 1954. The capital invested in the Philippine sugar industry has been variously estimated. A recent estimate of the Philippine Government placed investment in the centrals at about 178 million pesos of which about 42 percent was Filipino capital, 32 percent American capital, and 26 percent Spanish capital.

Molasses, a byproduct of sugar milling, is produced in quantities sufficient for export. Production for 1954 is estimated at about 330,000 metric tons of which about 220,000 tons were expected to be exported. In 1951 and 1952 exports amounted to 126,000 and 196,000 tons, respectively.

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