Dear Attorney,
I would like to seek your legal advice regarding a situation where another entity or individual is infringing on my established business operations and possibly entering into competition in a way that feels unlawful. Could you provide guidance on how this might be addressed legally? I would appreciate any advice on potential steps to protect my business interests.
Thank you.
Insights
In the Philippines, business trespassing is not explicitly defined under a single statute. However, certain actions that disrupt or infringe upon a business may fall under unfair competition, a concept enshrined in the Intellectual Property Code of the Philippines (Republic Act No. 8293). The law aims to protect the goodwill of businesses from unscrupulous entities that seek to profit by creating confusion or taking undue advantage of an established business' reputation.
Unfair Competition Under Philippine Law
Unfair competition involves any deceitful practice used to mislead consumers, such as imitating a business's brand, trademarks, or trade dress in a manner that causes confusion. Article 189 of the Revised Penal Code also imposes penalties for anyone who knowingly commits acts of unfair competition. Common forms of unfair competition include passing off one’s goods or services as another's, or replicating the branding elements of a competitor to capture a share of the market dishonestly.
Civil and Criminal Remedies
Victims of unfair competition can file civil or criminal cases against offenders. Civil remedies under the Intellectual Property Code include seeking injunctions to stop further infringing actions, claiming damages, and even requesting the destruction of infringing goods. Criminal liabilities may result in imprisonment or fines.
Restrictive Covenants and Non-Compete Clauses
Additionally, businesses can protect themselves through restrictive covenants such as non-compete clauses in employment contracts or business agreements. Although non-compete clauses are enforceable under Philippine law, they must be reasonable in scope and duration to ensure that they do not unreasonably limit the other party’s right to earn a living.
Conclusion
Businesses must remain vigilant in safeguarding their market position. Consulting legal counsel early on to explore avenues like filing a case for unfair competition, securing appropriate contractual protections, or addressing acts that may constitute business interference is key to protecting one’s enterprise in the Philippines.