What are the Intellectual Properties?

Intellectual properties are intellectual creations of individuals or an expression of one’s creativeness or idea, either as an art or an invention that provides scientific solutions to problems. They are protected under the 1987 Philippines Constitution which provides “The State shall protect and secure the exclusive rights of scientists, inventors, artists, and other gifted citizens to their intellectual property and creations, particularly when beneficial to the people, for such period as may be provided by law” (Sec. 13, Art. XIV).

Under the Intellectual Property Code of the Philippines or the Republic Act No. 8293, the prevailing laws for Intellectual Property Rights (IPC), the following are granted intellectual property rights:

• Copyright and Related Rights
• Trademarks and Trade Services
• Geographic Indications
• Industrial Designs
• Patents
• Layout-Designs (Topographies) of Integrated Circuits
• Protection of Undisclosed Information (Section 4)

What is a Trademark?

The Intellectual Property Code (IPC) defines trademark as any visible sign capable of distinguishing the goods (trademark) or services (service mark) of an enterprise and shall include a stamped or marked container of goods.” It is a distinctive mark of authenticity through which a merchandise of a particular producer or manufacturer may be distinguished from that of others. It gives a unique identification to one’s goods or services.

Who May Create or Own Trademarks?

Generally, as trademarks are considered as intellectual creations, only a natural person can create trademarks. But despite this, juridical persons or entities may register and own a trademark under its own legal personality.

A natural person can assign or transfer the trademark to another person, natural or juridical entity, provided that such assignment or transfer be in writing.

Are Trademarks Required to be Registered before It Can be Used in the Public Market?

Intellectual properties are granted rights from the moment of its creation, and can be used or displayed in commerce without registration. However, registering trademarks has its benefits.

Under the first-to-file rule of Intellectual Property Code (IPC), the first one to register a trademark is granted an exclusive rights against those unscrupulous or unauthorized use. This means that even a small enterprise can be protected against a big entity in a trademark prosecution, provided that the former was able to secure registration of the trademark in question ahead of the latter.

What are the Remedies If the Trademark is Used Without Authorization from the Registered Owner?

The registered owner can file for trademark infringement against those who are using the trademark without proper authorization or consent from said registered owner, plus seizure and destruction of the infringing materials.

On the other hand, if the mark is employed in any goods or services (whether the mark is registered or not) can file for unfair competition, provided that there is passing off of goods, thereby creating an impression in the public’s mind that the goods comes from the source.

What are the Benefits of Registering a Trademark?

According to the Intellectual Property Office of the Philippines (IPOPHL), a registration gives the owner the exclusive rights to prevent others from using or exploiting the mark in any way. Additionally, the IPOPHL enumerated the following trademark benefits:

• Source-Identifier. People immediately associate goods or services with a name or a symbol of the business. This is not uncommon in the world of business. A symbol or a name would usually familiarize the person of the goods the business sells or the services they render, this is called branding. Having a registered or a trademark, would entitle ownership over the name or the mark which represents the brand.
• Differentiator. A registered trademark legally identifies a business, people will then start to discern the quality of their products and services as distinguished from other business. At the outset, s and trademarks are what sets your business apart and makes your branding unique from others. Consumers are generally attracted to the mark when purchasing certain goods, as such a mark gives an initial hint that a product comes from the manufacturer or seller that they trust.
• Quality Indicator. Trademarks standardize the people’s perception of your goods and services. Products and services with exceptional quality usually become word of mouth of their customers or clients. In that sense, businesses with s and trademarks are usually particular of goods and services they produce to keep up with their established reputation.
• Advertising Device. Normally, when brands establish their s and trademarks, people presume that all the goods and services they will produce are of quality. Thus businesses with s could easily advertise their goods and services through the use of their name or symbol. A known trademark can simply stamp their mark and people would already know which brand it is associated with. 
• Income Generator. The owners of a registered trademarks have the right to sell or lease your trademark, with that they can capitalize their trademark and add more to their income through licensing or franchising.
• Legal Ownership thus Legal Rights. Upon registration of the trademark the Intellectual Property Code provides that such registration confers exclusive right to prevent all properties not having the registered owner’s consent from using in the course of trade identical or similar for goods or services from that of the owner. Where an identical sign for identical goods or services if used in the course of business, a likelihood of confusion shall be presumed. Registration being a nationwide notice is a protection of the registered owner from infringement and/or unfair competition. 
• Priority in Rights. The Intellectual Property Code (IPC) provides that the first proprietor or creator of a trademark is granted prior protection and rights against those later in registration.
• Adds Value to the Brand. Studies show that a registered trademark of a company’s product or services is usually associated with high quality goods, thus people will come to trust your business more as opposed to those unregistered trademarks. This also builds customer loyalty. Moreover, the legality that registration brings into the brand gives customers a sense of security that what they are buying is from a legitimate business, this gives clients and customers a sense of security.

Need further information and assistance regarding Trademark Registration? Talk to our team at Duran & Duran-Schulze Law to know more about the requirements and process. Call us today at (+632) 8478 5826 or +63 917 194 0482, or send an email to info@duranschulze.com for more information.