What are Intellectual Properties?
These 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 (Republic Act No. 8293), the prevailing laws for Intellectual Property Rights (IPC), the following are granted intellectual property rights: (a) Copyright and Related Rights, (b) Trademarks and Trade Services, (c) Geographic Indications, (d) Industrial Designs, (e) Patents; (f) Layout-Designs (Topographies) of Integrated Circuits, and (g) Protection of Undisclosed Information. (Sec. 4)
Let us focus more on Trademarks and its benefits.
What is a Trademark?
The IPC defines a mark 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 they 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 IPC, the first one to have his/her/its trademark are granted priority in 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 in cases where 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 having and registering a Trademark?
According to the IPOPhl, registration gives the owner the exclusive rights to prevent others from using or exploiting the mark in any way. IPO Phil also enumerated the trademark benefits. They are as follows:
- 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
Registered s and trademarks 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
Owners of s and 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.
In addition to that mentioned by the IPOHL, the following are inherent rights upon registration of the name or the mark.
- 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
As mentioned earlier, the 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 on legal matters? Talk to our Legal team at Duran & Duran-Schulze Law to know more about the requirements and process. Call us today at (+632) 8478 5826 or send an email to info@duranschulze.com for more information.