Amendments on trademark and unfair competition

Republic Act No. 172 is enacted to amend Act No. 3815 (Revised Penal Code) by revising Article 188 and Article 189.
The amended provisions continue to operate within the Revised Penal Code’s framework for criminal penalties tied to trademark substitution/alteration and unfair competition-related conduct.

Article 188 targets substitution, alteration, and fraudulent use or enabling of trade-marks, trade-names, or service marks.
Article 189 targets unfair competition designed to deceive or defraud, as well as false designation of origin, fraudulent registration, and false descriptions/representations tied to marks and ownership.
The provisions define and treat as punishable acts those that mislead the public about the true source, ownership, or identity of goods or services.
The provisions focus on deception of consumers and fraud directed at legitimate business interests and public reliance.

Article 188 defines a trade-name or trade-mark as a word or words, name, title, symbol, emblem, sign, or device, or any combination thereof used as an advertisement, sign, label, poster, or otherwise, to enable the public to distinguish the business of the person who owns and uses the trade-name or trade-mark.
Article 188 defines a service mark as a mark used in the sale or advertising of services to identify the services of one person and distinguish them from the services of others, including without limitation marks, names, symbols, titles, designations, slogans, character names, and distinctive features of radio or other advertising.
Article 188 treats these definitions as controlling for determining liability under its penalty and operative acts.

Article 188 imposes the penalty of prision correcional in its minimum period or a fine ranging from PHP 500 to PHP 2,000, or both, on the persons described in paragraphs 1 to 4.
Article 188 imposes liability on any person who substitutes the trade-name or trade-mark of another manufacturer or dealer—or a colorable imitation—for the trade-name or trade-mark of the real manufacturer or dealer upon any article of commerce and sells the same.
Article 188 imposes liability on any person who sells such articles of commerce or offers them for sale, knowing that the trade-name or trade-mark has been fraudulently used on such goods.
Article 188 imposes liability on any person who, in the sale or advertising of services, uses or substitutes the service mark of another person—or a colorable imitation thereof.
Article 188 imposes liability on any person who, knowing the purposes for which the trade-name, trade-mark, or service mark is to be used, prints, lithographs, or in any way reproduces the trade-name, trade-mark, or service mark—or a colorable imitation thereof—for another person to enable that other person to fraudulently use the mark on his own goods or in connection with the sale or advertising of his services.

Article 189 imposes the penalty provided in the next preceding article (Article 188) upon the persons described in paragraphs 1 to 3.
Article 189 penalizes any person who, in unfair competition and for the purpose of deceiving or defrauding another of his legitimate trade or the public in general, sells goods giving them the general appearance of goods of another manufacturer or dealer, including by matching features such as the goods themselves, the wrapping, the device or words, or any other feature likely to induce the public to believe the goods are those of a different manufacturer or dealer; it also covers giving other persons a chance or opportunity to do the same with like purpose.
Article 189 penalizes any person who affixes, applies, annexes, or uses in connection with any goods or services (or in connection with any container for goods) a false designation of origin or any false description or representation, and then sells such goods or services.
Article 189 penalizes any person who, by false or fraudulent representations or declarations (or by other fraudulent means), procures from the patent office or from any other office that may thereafter be established by law for purposes of registration the registration of a trade-name, trade-mark, or service mark—or procures entry respecting such mark—or procures registration of himself as owner of such trade-name, trade-mark, or service mark.

Section 3 provides that Republic Act No. 172 takes effect upon its approval (June 20, 1947).