Hand tools firm faces trademark violation raps

MANILA, Philippines - Criminal charges were filed at the Department of Justice (DOJ) against a major distributor of hand tools in the country for allegedly selling fake products.

In a complaint, Herco Trading Inc. and its president, Wilfred Co, were accused of trademark infringement or violating Republic Act 8293 or the intellectual property law for supposedly distributing and selling counterfeit versions of hand hacksaw blades and claw hammers manufactured by Herco’s supplier, the Swedish company Kapman Aktiebolag (Kapman AB).

Complainant Jairius Abiera, who claims to be an intellectual property expert, said he is a “duly authorized attorney-in-fact” of Kapman AB empowered to take legal action against persons or businesses suspected of infringing the Swedish firm’s trademarks and intellectual property rights.

Kapman AB is a private limited liability company that is the registered owner of the “Bahco” trademark and the “Fish & Hook” device marks of hand hacksaw blades and claw hammers.

Abiera said the Swedish firm is also part of the Snap-on Group that is an innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users. Snap-on is a United States-based, 90-year-old umbrella corporation of 96 companies represented in 36 countries worldwide.

Securities and Exchange Commission records submitted by the complainant show that Herco accounts for at least 60 percent of all Bahco hand hacksaw blade sales in the Philippines, with total annual sales of about $6 million or nearly P300 million, he added.

Abiera alleged that Herco had been selling fake Bahco and Fish & Hook blades and hammers in the domestic market since mid-2009.

He said a test buy was conducted at Herco’s warehouse in Marilao, Bulacan last Mar. 26 after months of surveillance. He was joined by market researcher Renato Antonia and Chief Inspector Julius Caesar Mana of the Bulacan criminal investigation and detection team.

Abiera said also present during the search were Roberto Capuchino and Lennie Koa, the logistics officer and warehouseman, respectively, of Herco Trading; and Paulino Macaraeg, the barangay complaint action man of Barangay Sta. Rosa II in Marilao.

He said they were given a receipt bearing the heading of a certain SPI Marketing Inc. for the claw hammer and hacksaw blade they had bought at the Marilao warehouse for P250 and P32.50 apiece, respectively, but a check with the mayor’s office showed that “Herco Trading, Inc./Co Willy” was the registered owner of the warehouse.

Abiera said he confirmed that the products that they had bought were fake, prompting police to secure warrants to search the warehouse.

Among the items seized during the court-authorized search were: hot stamping and printing equipment bearing either the Fish & Hook labeling dye or markings; 11 fake claw hammers with Fish & Hook markings; 89 fake hacksaw blades with Bahco and Fish & Hook markings; and 238 empty carton boxes with Fish & Hook markings.

Abiera said Snap-On Singapore certifies that Bahco and Fish & Hook products are “imported into the Philippines as finished goods, already complete with all brandings.”

“Snap-on does not have any manufacturing operations in the Philippines. Neither does it have any branding or stamping of brand operations in the Philippines… These facts are known to Herco Trading Inc. as it is one of two of the biggest importers and distributors of Snap-on Singapore in the Philippines,” he said.