Verify the letter first: does the claimant have a right, and how wide is it
Trademark rights are territorial and tied to classes of goods. Being well known elsewhere does not mean holding a right in the Philippines, and a right in one class does not reach yours automatically. Check the letter point by point. First, the registration: does it state a Philippine registration or application number, the name of the registrant, and the goods or services covered? Search that number in the public database of the Intellectual Property Office of the Philippines and read the status: registered, pending, refused or no longer in force. A mere application is a much weaker basis than a registration. Second, validity: is the registration within its term, and has the owner filed the required declarations of use? Failure to file on time can cause a registration to lapse; that system is explained in our guide to the Declaration of Actual Use.
Third, scope: is the registered mark identical to yours, similar, or only partly overlapping, and are the goods the same or related to what you sell? Fourth, the sender: is it the owner, the owner's lawyer, or a third party calling itself an authorised agent? You may ask for proof of authority. In recent years some parties have registered other people's brands in bulk and then sent letters demanding licence fees, and others have posed as rights holders to complain about competitors, so checking the sender is not excessive caution.
Write the result on one page: what right the claimant has, where the doubts lie, and how you have been using the sign. That page sets the direction for every later choice. If the registration is valid and squarely covers your goods, the discussion is about limiting loss. Room to contest exists only where real doubts appear. The basic rules of the system are in our complete guide to trademark registration in the Philippines.
The first days: do not ignore, do not concede, preserve, then decide whether to stop selling
Four tasks fill the first days: note the deadline, preserve evidence, impose internal silence, and assess whether to suspend sales. Take the deadline from the letter itself and put it in the calendar. If you truly cannot meet it, ask in writing for a reasonable extension and explain that you are verifying the claim; that request is itself a response. For preservation, gather the letter and how it was served, your purchase contracts and invoices, the supplier's authorisation, import documents, the earliest proof of your use of the sign such as packaging artwork, first orders, advertising and listing records, and your sales data. These serve both as defence material and as the basis for any later discussion of amounts.
Internal silence means that employees and customer service do not reply to the claimant on their own, do not comment on social media, and do not write messages such as we knew these were copies. All outside communication goes through one person or the lawyer. Nor should you hurry to destroy stock or alter listing records after the letter arrives. That will be read as guilt and destruction of evidence.
Whether to stop selling is the hardest call. A workable division is this. Where the registration is valid, the sign is identical, the goods are the same and you cannot prove a genuine source, suspend sales and delist. It is the quickest way to cap exposure, and suspension is not admission; the reply can state that sales are suspended without admitting infringement. Where the source is clearly genuine, or you believe the signs or goods are not similar, you may continue after a lawyer's assessment, knowing that every further day of sales enlarges the base for damages if you lose. When in doubt, stopping first and talking second is safer than selling while arguing.
Is it really infringement? Five common lines of defence
Infringement generally requires three things together: a valid right, your use in commerce of an identical or similar sign, and use on the same or related goods in a way likely to confuse. Remove any one and the claim weakens. Five lines of defence come up often. Whether any applies to your case is for a licensed lawyer to judge; what follows is a framework for that conversation. First, no similarity: the overall impression of the two signs differs in appearance, sound and meaning, or the goods differ in nature, channel and buyers so that nobody would be misled.
Second, genuine goods: what you sell was placed on the market by the owner or with the owner's consent and imported through lawful channels. The legal treatment here is not simple and depends on factors such as whether the goods were altered and whether packaging and warranty are the same, so a complete supply chain is needed to support it. Third, prior use in good faith: you were using the sign continuously in the Philippines before the claimant applied, and you can prove it. Fourth, descriptive or referential use: you used the word only to describe the nature, ingredients, purpose or compatible model of the product, not as your own brand. Fifth, a defect in the claimant's right: the registration was obtained in bad faith, has lapsed for failure to file a declaration of use, or has long been unused, in which case cancellation may be considered. The position of a brand owner whose mark was registered by someone else is described in our guide to six common IP traps.
Face the opposite case honestly as well. If the goods are copies sourced from an unauthorised channel, none of the above applies, and stopping and settling early is the least costly route. A defence is built on evidence. It is not a way to buy time.
How to reply and negotiate: four outcomes and what each costs
Reply within the deadline, in writing, after review by a lawyer, stating only verified facts and noting that nothing in the letter is an admission of any allegation. Four outcomes are common. One, full acceptance: you stop using the sign, delist and deal with the stock, in exchange for the claimant dropping the matter or accepting limited compensation. This suits cases where the evidence is plainly against you. The points to negotiate are whether a sell-off period is allowed, whether a written undertaking is required, and whether it is limited to this sign and these goods. Two, a licence: you wish to keep selling and the owner is willing to authorise it, so the discussion is about scope, term and fees. Confirm that the other side is truly the owner and has the power to license.
Three, rebranding: the product itself is fine and only the name or packaging is similar, so you undertake to change them within a period and sell off existing stock. Four, a written rebuttal: you set out why you do not infringe, attach evidence, and remain open to discussion. After a rebuttal the claimant may go quiet or may escalate to an administrative complaint or a lawsuit, so assess with your lawyer the worst result you can bear before sending it.
Several limits apply in any negotiation. Do not admit anything by phone or chat. Read a proposed settlement clause by clause, especially the amount, penalties for future breach, any demand for details of your upstream supplier, and any restriction on similar signs in future. There is no standard amount; it is negotiated, and no figures are given here. Pay only after a written agreement is signed, and only to the owner's account named in it. An agreement stating that the matter is fully settled with no further claims is worth more than a lower price. If the claimant has instead opposed your own trademark application, that is a different procedure, covered in our guide to refusals and oppositions.
Goods already delisted, held by customs, or seized
Each situation has its own channel: a platform takedown is answered through the platform, a customs hold through customs procedure, and an enforcement seizure through legal process. The last two require a lawyer. Takedowns are the most common. When a rights holder files a complaint with an online marketplace, the platform usually removes the listing first and lets the seller respond. Within the period given, submit a counter-notice with purchase and authorisation documents, your reasons for non-infringement, or a settlement or licence already reached with the owner. An explanation without documents is rarely accepted. Repeated upheld complaints accumulate into penalties at store level, which is dealt with in our guide to a frozen Shopee or Lazada store.
A customs hold occurs at importation, either because the owner has recorded its rights with customs or because officers suspect infringement during examination. You will receive a notice and must explain and submit proof of lawful source within the stated period. Rely on the wording of the notice for the period and the procedure. Demurrage and storage charges build up meanwhile, so decide quickly whether to contest or abandon. Do not try to have the goods released through any informal route.
An enforcement seizure is the most serious: officers arrive at a warehouse or shop with a search warrant. On the spot, read the issuing court, the address, the person named and the items covered. Cooperate, do not obstruct or hide stock, obtain and sign for an inventory of what is taken, record everything, and call a lawyer immediately. If documents later arrive from a prosecutor or a court, begin with our guide to receiving a summons or subpoena in the Philippines. At this stage any sentence can become evidence. Do not explain on your own.
How to avoid the next letter, and how Yixing can help
Most infringement letters can be avoided before listing or importing, at the cost of one search and one document. Three habits. First, before using any brand name, logo or packaging design, run identical and similar searches in the public database of the Intellectual Property Office of the Philippines, covering not only your intended class but neighbouring ones. Second, when selling someone else's brand, obtain written authorisation or purchase documents traceable to the owner and file them with the product record. A supplier who says the goods are original but can show no paper should be treated as unauthorised. Third, apply early to register your own brand in the Philippines and file declarations of use on time. Otherwise you are unprotected, and someone else may register your mark and then turn it against you.
Build protection into contracts too. Purchase contracts should state that the supplier warrants the goods do not infringe third-party intellectual property and will bear resulting compensation and costs. Contracts with outsourced operators or designers should state that the names and artwork they deliver are non-infringing. Claims based on copyright or design differ from trademark claims; the basics are in our guide to copyright and patent protection in the Philippines.
Yixing International Travel Agency (SEC Registration No. CS202009551; Bureau of Immigration Accreditation No. CA-202624381-1) supports foreign-owned businesses in the Philippines through our compliance retainer service: preparing trademark searches and applications, reminders for declarations of use, building authorisation and purchase files for products, and, when an infringement letter arrives, organising evidence and connecting you with licensed intellectual property counsel. We are not a law firm, do not give opinions on whether infringement exists, and promise no negotiation or dispute outcome. For your specific case consult a licensed lawyer; this article is not legal advice.
Frequently Asked Questions
Can I ignore a trademark infringement letter?
How do I check whether the claimant really registered the mark in the Philippines?
I sell genuine products. Why am I accused of infringement?
Should I stop selling immediately?
The claimant demands a large sum. Must I pay it?
The claimant registered my own brand and is now accusing me. What can I do?
Customs is holding my shipment for alleged infringement. Can I just collect it?
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