Foreign investor appeals to government on piracy

Leading global investor Caterpillar Inc. of the US recently appealed to the Philippine government for help in dealing with local businessmen who have reportedly appropriated its internationally-famous brand resulting in business losses of close to $60 million.

The Illinois-based heavy equipment manufacturer is also a leading manufacturer of personal items, such as the popular Caterpillar line of shoes, shirts, belts, wallets and watches.

The company told the government that Caterpillar-branded personal items now flooding the Philippine market "are not manufactured nor distributed by the international brand owners."

Caterpillar expressed concern that local consumers "may have been made to believe that these items are the original US items since they are priced on the same level as the authentic Caterpillar products."

The US firm disclosed that investigations have shown that these products are manufactured in China and are reportedly branded by a local businessman with label copied from the copyrighted Caterpillar USA visual brand. The local businessmen is now facing several charges of product and brand counterfeiting before local courts.

"While this situation is grossly unfair to the Filipino consumers, it is also damaging to the reputation of the Philippines in the international market," Caterpillar pointed out.

The US firm said that while it has recognized the significant improvement in the Philippine economy, the firm as well as other global investors "are still afraid to expand our investment commitments because we cannot compete with local businessmen who illegally copy and use our product brands and designs."

In a way, these businessmen are jeopardizing the entry of more investments and the creation of more jobs in the Philippines, Caterpillar explained.

The US firm requested the Arroyo administration "to strongly call the attention of Philippine justice and law enforcement agencies to this menace."

It expressed the hope that "Philippine justice authorities and local courts would act with greater resolve, urgency and firmness on this matter."

The Philippines is currently included in the international watchlist of intellectual property rights violators. The United States Trade Representative said it is not satisfied with local enforcement of anti-piracy laws. The country’s piracy and copyright problems were said to have cost US companies losses of around $200 million in 2001.