Thursday, March 11, 2010

Mc vs Mak

Back in 1990, McDonald’s Corporation, through a local franchisee, filed an action for trademark infringement and unfair competition against Big Mak, a domestic corporation operating snack vans that sell, among others, hamburger sandwiches.

After 14 years, and a few reversals, McDonald’s was finally able to get a favorable judgment from the Supreme Court, finding Big Mak liable for trademark infringement and unfair competition. It reinstated the ruling of the RTC, which ordered Big Mak to pay a total of Php700,000 in damages and permanently enjoining Big Mak from using the trademark. That was back in 2004.

Now, Big Mak still has operations in the provinces near Metro Manila. It might have ceased operations in the Metro, but it is still operating and using under the disputed trademark. This is not to say that McDonald’s is not doing anything about it. It maintains one of the biggest law firms in the Philippines as counsel just to enforce the Supreme Court Decision obtained more than half a decade ago. Contempt charges have been filed in hopes of completely obliterating the chain Big Mak. But the fact remains that it still exists and operates.

Almost 20 years had passed since McDonald’s sought protection of its intellectual property. Although it had obtained a declaration of its rights, that is all the entire litigation had accomplished thus far: a mere recognition. McDonald’s has not been sleeping on its rights. In fact, it has been trying to enforce the judgment. But is this all that our laws can give as protection for holders of intellectual property rights? Is the protection the Philippines claims to provide intellectual property rights holders really just a toothless mechanism? In the Philippines, can there really be an effective protection of intellectual property rights?

Read the case: McDonald’s Corp. vs. L.C. Big Mak Burger, Inc. G.R. no. 143993 August 18, 2004


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