European firms to explore invest opportunities in Phl

Manila, Philippines -  European manufacturers of mass consumer goods will be encouraged to explore investment opportunities in the Philippines because of the country’s accession to the Madrid Protocol, a centralized trademark registration system that allows automatic registration in 86 countries through a single registration in any of the member states.

The Philippines is the 85th country to accede to the system and the first this year. On May 29, Colombia acceded to the protocol.

The Philippines deposited the instrument of accession with the World Intellectual Property Organization (WIPO) on April 25, 2012; the instrument of Accession was signed by President Aquino on March 27, 2012.

Ricardo Blancaflor, director general of the Intellectual Property Office of the Philippines (IPOPHL) said hundreds of new local brands are expected to join the system once it begins accepting applications by July 25, 2012.

The system will significantly reduce the cost and effort of registering a trademark. Because of its wider coverage, it will also serve as a protection in cases of trademark litigation as well as a means of avoiding accidental infringement of trademarks.

Under the current system, it costs between $3,000 to $7,000 to register a trademark in other countries. Blancaflor said that under the Madrid system, registrants would only have to pay 20 percent of what is usually spent to register a trademark.

Blancaflor said there are currently over 1, 500 Filipino brands that currently have overseas operations. These brands underwent the usual procedure for registration of trademarks.

The IPOPHL has released the implementing rules and regulations for the system also known as the Philippine Madrid Regulations which can be found on its website.

IPOPHL deputy director General Michael Ong explained that even if the registration is centralized for 86 countries, the implementation of trademark laws would be individual to each state party to the Madrid system.

The European Commission yesterday held a forum on the benefits of the protocol to the Philippines at the IPOPHL head office in Taguig City.

EU Ambassador to the Philippines Guy Ledoux said that by joining the protocol, the Philippines sends a strong signal to the business community that it is improving its business climate.

“The move will assist Filipino companies going global, who can now readily extend protection of their marks to other countries party to the Madrid Protocol. This makes international trademark protection more accessible, not only to larger Filipino corporations, but also to small and medium enterprises,” he said.

Ledoux also said that foreign companies would now be more encouraged to invest in the Philippines because the process is now simpler and cheaper.

In an interview at the sidelines of the forum, Giullo Martellini, a trademark lawyer working on the EU-Philippines Trade-Related Assistance Project, said the country, because of its emerging middle class, is becoming a potential investment destination for European manufacturers of mass consumer goods.