PRESENT law grants to a foreign corporation, whether licensed to do business in the country, the right to seek redress for unfair competition before Philippine courts. But the said law is not without qualifications. Its literal tenor indicates as a condition sine qua non the registration of the trademark of the suing foreign corporation with the Intellectual Property Office-Philippines, or at least, that it be an assignee of such registered trademark (Republic Act 8293, or the Intellectual Property Code of the Philippines). The said law further requires that the country, of which the plaintiff foreign corporation or juridical person is a citizen or a domiciliary, grants to Filipino corporations or juridical entities the same reciprocal treatment, either through treaty, convention or law. It is essentially a compact between the various member-countries—to accord in their own countries to citizens of the other contracting parties—the protective rights comparable to those accorded their own citizens by their domestic law.

The underlying principle is that foreign companies should be given the same treatment in each of the member-countries as that country makes available to its own citizens. In addition, this sought to create uniformity in certain respects by obligating each member-nation to assure to nationals of countries, an effective protection against unfair competition (Vanity Fair Mills Inc. versus T. Eaton Co.,234 F. 2d 633).

There are also legal remedies available to foreign nationals against invasion of their corporate rights. Under existing jurisprudence, a foreign registrant-company, which is entitled to the exclusive use of registered mark or trade name, may recover damages and seek injunction in a civil action for infringement against any person who infringes its rights (Section 155 and 156, Republic Act 8293). In determining the question of infringement, the amount of matter copied from the copyrighted work is an important consideration. To constitute infringement, it is not necessary that the whole or even a large portion of the work shall have been copied (Pacita I. Habana, et. al., versus Felicidad C. Robles, et al., respondents, G.R131522, July 19, 1999). In addition, a person who has identified in the mind of the public the goods he manufactures or deals in, his business or services from those of others—whether or not a registered mark is employed—has a property right in the goodwill of the said goods, business or services so identified, which will be protected in the same manner as other property rights (Section 168, ibid).

Under the law, any person who believes that he would be damaged by the registration of a mark may file an opposition and cancellation to the application and registration (Sec. 134, ibid). The foreign registrant can also petition for seizure of prohibited goods (Section 169.2, ibid).

It has been held that actions by a foreign corporation are governed by rules different from those filed against them. When a foreign corporation is sued, it may interpose a counterclaim which would defeat the complaint. If it is the one suing on an isolated contract or it is exempt from the license requirement, a local defendant can file a counterclaim against it, in which case the foreign corporation is a defendant in said counterclaim, in either of these, the foreign corporation is not maintaining a suit (Agpalo, comments on the Corporation Code of the Philippines, p. 479).

NEW Smart subsidiary, Connectivity Unlimited Resource Enterprise (CURE), wants to expand its network coverage in rural areas to serve the country’s agriculture sector.

UK company buys Atlas units’ stake in Palawan nickel mine

EUROPEAN Nickel Plc. is acquiring the interest of Investika Ltd. in Berong Nickel Corp. (BNC) and Toledo Mining Corp. (TMC) for $48 million.

EXPECTED to supply part of the base-load power requirement in Mindanao four years from now, Alcantara-led Conal Holdings Co. (CHC) said Tuesday that it will build a $450-million 200-megawatt (MW) coal–fired power station in southern Mindanao.

THE Securities and Exchange Commission (SEC) has approved the plan of Ayala Land Inc. (ALI) to issue up to 1 billion common shares to raise funds for expansion.

THE Filipino management team running the Rapu Rapu project since January 2006, has resigned after negotiations with South Korean-owned Philco Resources Ltd., the project’s new owners, fell through.

TRAVELLERS International Hotel Group, Inc., a subsidiary of listed Alliance Global Group Inc. (AGI), is inching closer to its plan to build a leisure development on the Manila Bay reclamation site.

PRESENT law grants to a foreign corporation, whether licensed to do business in the country, the right to seek redress for unfair competition before Philippine courts. But the said law is not without qualifications.