The proliferation of counterfeit goods—from luxury handbags and electronic gadgets to hazardous fake pharmaceuticals—poses a significant threat to brand owners, consumers, and the national economy. In the Philippines, the legal framework governing these violations is primarily anchored in Republic Act No. 8293, otherwise known as the Intellectual Property Code of the Philippines (IP Code).

This article outlines the specific legal remedies available to rights holders and the severe penalties imposed on those who deal in "knock-offs."

I. The Basis of Liability: Trademark Infringement and Unfair Competition

Before pursuing remedies, it is essential to distinguish between the two primary causes of action used against sellers of counterfeit products:

Trademark Infringement (Section 155): Occurs when a person uses a colorable imitation of a registered mark in connection with the sale or advertising of goods, such that it is likely to cause confusion or mistake. Registration with the Intellectual Property Office (IPOPHL) is a prerequisite for an infringement suit.
Unfair Competition (Section 168): Unlike infringement, this does not require a registered mark. It applies when a person passes off their goods as those of another through "deceptive artifice" or any means likely to induce the belief that the goods are those of a manufacturer other than the actual one.

II. Legal Remedies for Rights Holders

Rights holders in the Philippines have three main avenues for redress: Administrative, Civil, and Criminal.

1. Administrative Remedies

Handled by the Bureau of Legal Affairs (BLA) of the IPOPHL, this is often the fastest route for stopping counterfeiters.

Cease and Desist Orders: Ordering the perpetrator to stop selling the goods.
Contempt Citations: For failure to follow IPOPHL orders.
Administrative Fines: Ranging from ₱5,000 to ₱150,000, plus additional daily fines for continuing violations.
Cancellation of Permits: Recommendation to local government units to revoke the business permits of the offending establishment.

2. Civil Remedies

The goal of a civil suit (filed in Regional Trial Courts) is recovery and restitution.

Injunction: A court order to permanently stop the defendant from selling the counterfeit items.
Damages: The plaintiff can recover the profits earned by the seller or the damages the plaintiff suffered, whichever is higher. If intent to deceive is proven, the court may double the damages (Section 156.3).
Destruction of Goods: The court may order that all counterfeit goods, as well as the materials and implements used to create them (such as molds or stamps), be destroyed without compensation.

3. Criminal Remedies

Selling counterfeit goods is a public crime. This involves filing a complaint with the Prosecutor’s Office, leading to a trial that can result in imprisonment.

Search Warrants: Rights holders often coordinate with the National Bureau of Investigation (NBI) or the Philippine National Police (PNP) to conduct raids and seize evidence.

III. Penalties under the IP Code

The penalties for Trademark Infringement, Unfair Competition, and False Designation of Origin are uniform and severe to act as a deterrent.

Violation Type	Minimum Penalty	Maximum Penalty
Imprisonment	2 Years	5 Years
Fine	₱50,000	₱200,000

Note: These penalties apply to each count of the violation. In cases where the offender is a corporation, the officers responsible for the violation (e.g., President, Manager) will be held personally liable for the imprisonment aspect.

IV. Specialized Enforcement: The Role of the BOC

Beyond the IP Code, the Bureau of Customs (BOC) plays a critical role through Administrative Order No. 02-2020. Rights holders can record their trademarks with the BOC. Once recorded, the BOC has the authority to:

Seize and Detain suspected counterfeit goods at the border.
Issue Alerts to prevent the entry of "look-alike" shipments.
Forfeit and Destroy smuggled counterfeit items.

V. Defenses Commonly Raised

Defendants in counterfeit cases often attempt to argue:

Good Faith: Claiming they did not know the products were fake (though this is generally not a defense against an injunction).
Genericism: Claiming the trademark has become a common name for the product.
Prior Use: Arguing they used the mark before the plaintiff registered it (requires substantial proof).

Summary of Legal Actions

Step 1: Market monitoring and evidence gathering (test buys).
Step 2: Verification of trademark registration or "well-known" status.
Step 3: Choice of forum (Administrative for speed, Civil for money, Criminal for punishment).
Step 4: Execution of search warrants or enforcement of orders.