2014 Mercantile Law, Q16

In intellectual property cases, fraudulent intent is not an element of the cause of action except in cases involving: (1%)
(A) trademark infringement
(B) copyright infringement
(C) patent infringement
(D) unfair competition

Quick check

In which intellectual property action is fraudulent intent an indispensable element of the cause of action under Republic Act Number 8293?

Is proof of fraudulent intent required to establish a cause of action for trademark infringement under Philippine law?

What constitutes the core gravamen of an action for unfair competition under Section 168 of RA 8293?

Can a business entity be held liable for trademark infringement even if it acted in good faith without intent to deceive?

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Which primary statute governs trademark infringement, unfair competition, patents, and copyrights in the Philippines?

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1. Fraudulent Intent Requirement
Under Section 168 of the Intellectual Property Code of the Philippines (Republic Act Number 8293) and established jurisprudence, fraudulent intent is an essential element in an action for unfair competition. Unfair competition consists of passing off one's goods or services as those of another, deceiving the general public, or defrauding a commercial competitor. Unlike trademark or copyright infringement actions where liability attaches upon unauthorized use regardless of good or bad faith, unfair competition requires proof of intent to deceive or pass off.

2. Trademark Infringement Distinctions
Under Section 155 of Republic Act Number 8293, trademark infringement is the unauthorized use of a registered mark or a colorable imitation thereof in connection with the sale, offering for sale, or advertising of goods or services. Trademark infringement is a statutory cause of action based on the violation of a registered property right. Good faith or lack of fraudulent intent is not a defense in an infringement action, as the law protects the registered mark owner against likelihood of confusion regardless of the infringer's state of mind.

3. Passing Off Doctrine
The essence of unfair competition under Philippine law is the passing off of one's products or business as those of a competitor who has established goodwill. Passing off occurs when a person dresses up their goods or uses deceptive means to induce the purchasing public into believing that their goods originate from another manufacturer or entity. Because passing off relies on deception and unfair commercial trickery, fraudulent intent to deceive the public is the indispensable legal gravamen of unfair competition suits.

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