THE owner of an international pencil brand is set to file a lawsuit against local retailers in Cebu for trademark infringement.
Last June 7, the National Bureau of Investigation (NBI) Central Visayas with search warrants issued by the Regional Trial Court, seized fake Mongol pencils from two retail trading stores in Cebu City.
Mongol is manufactured and supplied to the Philippines by US-based Berol Corp. Star 360 Philippines officially distributes the pencil in the country.
Lawyer Eduardo Escaño of the Escaño Sarmiento & Partners Law Offices in Manila, Berol’s Philippine legal counsel, said they are preparing criminal charges and are expected to file these next week.
Escaño said they are seeking P500,000 in damages and P250,000 in attorney’s fees from each of the complaints filed.
He said the sale and distribution of fake Mongol pencils infringe on the trademark of Berol.
“Under the Intellectual Property Code of the Philippines, the act of offering and selling counterfeit merchandise and imitations is a clear violation of Berol’s economic and property rights over Mongol,” Escaño said.
Escaño said officials are ready to conduct a nationwide investigation on the issue.
He said the raid early this month was a follow up to actions taken last year when fake Mongol pencils were found to have been sold by four establishments.
Escaño said illegal operators move into Cebu because the province is a potential distribution hub for Visayas and Mindanao.
Berol is a wholly owned subsidiary of parent company Newell Rubbermaid Co. Escaño said the latter is an S&P 500 company listed in the New York Stock Exchange.
He said counterfeiting of their brand translated into a 30 percent to 35 percent loss for the company in 2012.
He said counterfeit Mongol pencils are usually mixed with authentic items and are identified by its sub-standard qualities such as fragile lead, crumbly eraser and colors that chip off.
He said these pencils are still sold at the suggested retail price, which is P5 apiece for genuine Mongol pencils.