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Are sound marks protected under Philippine law?

SAYAN GHOSH-UNSPLASH

Ta-dum” followed by a bold red letter “N.” Without hesitation, Netflix immediately comes to mind.

More than just vibrations in the air or random notes strung together, sounds are powerful tools that can be used to carry meaning and trigger memories. Some sounds are so unique that they become directly associated with a brand or product. In fact, certain sounds are so distinctive that they can serve as trademarks or unique source identifiers for the goods or services of an enterprise.

In 2017, Netflix, Inc. was issued a registration for its opening sound by the United States Patent and Trademark Office (USPTO) covering streaming services (Nice International Class 38) and entertainment services (Class 41). Its Certificate of Registration identifies it as a sensory mark and contains the following description: “The mark consists of a sound mark comprising a musical composition featuring two sixteenth note timpani strikes on D2 and D3, simultaneously with which are played three dotted half notes on D2, D4 and D5.”1

This is not the first time a sound was granted trademark protection. One can easily recognize the electric hum of a Star Wars lightsaber, the resonant chime of a MacBook booting up, and the booming lion’s roar before every MGM movie. There are countless examples — the Looney Tunes theme song, Yahoo’s yodel, the Pinkfong intro.

Like any other trademark, a sound mark must meet the requirement of distinctiveness in order to be registrable. The EU Trademark Regulations provide that sound marks must be “capable of distinguishing the goods or services of one undertaking from those of other undertakings.”2 The USPTO further provides that, for a sound mark to function as a source indicator, it must “assume a definite shape or arrangement” and “create in the hearer’s mind an association of the sound” with a good or service.3

In order to be distinctive, the sound must not be functional. The General Court of the European Union has had the opportunity to rule on the registrability of a sound of a can opening, followed by silence and a fizzing sound. The sound was denied registration as it was not distinctive, but a purely technical and functional element of all drinks. In other words, it was not resonant enough to distinguish it from comparable sounds in the field of drinks.4

Sound marks are currently recognized and protected in a few jurisdictions, including the USA, India, Australia, China, the UK, Canada, and Japan.5

Earlier this year, in an effort to institutionalize the protection of non-conventional marks, the Intellectual Property Office of the Philippines (IPOPHL) issued Memorandum Circular No. 2023-001 or the “Rules and Regulations on Trademarks, Service Marks, Trade Names and Marked or Stamped Containers of 2023” (Amended Rules). This amended the Revised Trademark Regulations of 2017.

Under the Amended Rules, the IPOPHL provided guidelines on the protection of non-conventional marks like color marks, position marks, motion marks, and hologram marks.

Despite the acceptance by the Philippines of more non-conventional marks, trademark protection is limited only to visual marks. This limitation stems from the IP Code (Republic Act No. 8293) which defines a “mark” as “any visible sign capable of distinguishing the goods (trademark) or services (service mark) of an enterprise…”6

Notably, there are other marks that are not visually perceptible but are capable of becoming unique identifiers of products and services of certain businesses. These include sound marks, taste marks, texture or feel marks, and olfactory marks.7

For the Philippines to afford protection to these non-visual marks, the enactment of legislation amending the IP Code is required.

There are at least three bills8 filed with the House of Representatives proposing to further amend the IP Code. These bills uniformly define a “mark” as “any sign or combination of signs,” without any qualification as to whether the sign is visible or not. As of today, the bills are pending before the House Committee on Trade and Industry.

In the meantime, while the law allowing the protection of sound marks and other non-visual marks are not “hear” yet, it cannot be denied that audio or sonic branding has become more common among businesses. A number of iconic sounds like SM’s “We got it all for you,” TV Patrol’s intro score, the sonic brand of Ortigas malls9, and LBC’s “Hari ng padala” function as unique identifiers of their respective goods and services. A law allowing the protection of sound marks would be helpful for business owners should there be attempts by opportunistic individuals to utilize the same sounds on their own goods and services.

1 Details of Registration No. 5194272 taken from https://uspto.report/TM/86959878.

2 Chapter II, Section 1, Article 4, Regulation (EU) 2017/1001 of the European Parliament and of the Council.

3 Section 1202.15 of the Trademark Manual of Examining Procedure (TMEP) directly accessed from https://tmep.uspto.gov/RDMS/TMEP/Oct2012#/Oct2012/TMEP-1200d1e2927.html.

4 Ardagh Metal Beverage Holdings GmbH & Co. KG vs. European Union Intellectual Property Office (EUIPO), Case T-668/19, 07 July 2021.

5 https://thetrademarksearchcompany.com/sound-trademarks-registration-benefits-examples/

6 Section 121.1 of the Intellectual Property Code of the Philippines; Rule 101(m), IPOPHL Memorandum Circular No. 2023-001 dated Jan. 10, 2023.

7 https://www.wipo.int/edocs/mdocs/sct/en/sct_20/wipo_strad_inf_3.pdf

8 House Bill No. 799, House Bill No. 2672, House Bill No. 3838.

9 https://www.adobomagazine.com/campaign-spotlight/campaign-spotlight-that-sounds-about-right-a-sonic-brand-identity-for-ortigas-malls/

This article is for general informational and educational purposes only and not offered as, and does not constitute, legal advice or legal opinion.

 

Clarisse Paulina M. Valdecantos-Javelosa is an associate of the Intellectual Property Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

cmvaldecantos@accralaw.com

+632-8830-8000

Auto sales

VEHICLE SALES increased by 44.8% year on year in May amid strong market demand across all segments, industry data released on Tuesday showed. Read the full story.

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Skills-first hiring seen to address PHL employment challenges

JOB SEEKERS attend the mega job fair organized by the Public Employment Service Office at the Universidad de Manila (UDM) covered court. — PHILIPPINE STAR/EDD GUMBAN

UNEMPLOYMENT and job mismatch in the Philippines can be addressed by putting skills at the forefront of hiring strategies and changing the education approach, a human capital solutions company said.

A shift in mindset is needed to tackle the skills challenge in the workforce, Viventis Search Asia Executive Director Yu Mung Chin told BusinessWorld on the sidelines of the company’s conference on June 7.

“We used to focus heavily on the role-based type of career matching,” he said. “The transition of that will be very important; on an organizational level, you now need to look at skills rather than tenure.”

“You will see that, in the next 2 to 3 years, the approach will change. There is untapped talent that has relevant skills to fill up skills-based jobs, so the ability to unearth that becomes important,” he added.

He also said that micro, small, and medium enterprises (MSMEs) in the Philippines are in a better position to take on a skills-based approach than big companies, which are more weighed down by years of tradition.

In 2022, the Philippine Labor department pointed out how important MSMEs are in “driving growth, employment generation, and creating income opportunities for workers.”

Mr. Chin noted that the ability of a country to ensure gainful employment in a very proactive and forceful way — by promoting productive use of skills and talent — is very important.

He said that the key to addressing the skills challenge lies in three main aspects: attracting talent with the right skills for specific jobs, investing in talent development through reskilling and upskilling initiatives, and utilizing appropriate career technology to enable the acquisition and application of skills.

These three pillars play a crucial role in creating meaningful career opportunities for individuals in the workforce, Mr. Chin said.

Deloitte’s 2022 Analysis of Skills-Based Organization survey found that organizations that adopt a skills-based approach are 63% more likely to achieve results than those who have not.

Viventis Search Asia’s partnership with skills intelligence platform iMocha gives businesses across all industries access to skills-first practices.

iMocha’s skills intelligence cloud is equipped with job role listings in various departments and skills mapped for each role, plus skill profiles of all employees to help determine their next path or role.

“A skills intelligence cloud, which uses a multi-channel approach through AI to regularly update an employee’s skill profile, lets us move beyond just skills assessment,” said Amit Mishra, co-founder and chief executive officer of iMocha, at the conference.

The strategies and technologies aimed at talent attraction and management are now accessible to the Southeast Asian market. — Brontë H. Lacsamana

Golden Globe Awards sold, Hollywood Foreign Press group shut down

GOLDEN GLOBE AWARDS sold, Hollywood Foreign Press group shut down

LOS ANGELES — The Golden Globe Awards were sold on Monday to a new owner that will shut down the Hollywood Foreign Press Association (HFPA), the voting group that faced controversy over ethical lapses and a lack of diversity.

Eldridge Industries purchased the Golden Globe assets with Dick Clark Productions (DCP), which will continue to manage the awards telecast and focus on expanding the Globes’ viewership around the world, a press release said. DCP is co-owned by Eldridge and Penske Media. The sale comes after the HFPA struggled to repair its reputation after a Hollywood backlash over its ethics and lack of diversity, which led US television network NBC to drop the Golden Globes ceremony in 2022.

A Los Angeles Times investigation in 2021 revealed the organization had no Black journalists in its ranks. Some members were accused of making sexist and racist remarks and soliciting favors from celebrities and movie studios.

The HFPA responded by expanding and diversifying its membership and instituting new ethics policies. Eldridge Industries Chairman Todd Boehly aims to reshape the HFPA, a nonprofit organization of international entertainment reporters, into hired workers in a for-profit venture. All of the 310 current voters will be eligible to cast ballots for the next ceremony in January 2024, a spokesperson said.

“Today marks a significant milestone in the evolution of the Golden Globes,” Mr. Boehly said in a statement.

NBC aired the Globes again in 2023. No network has yet signed up to run the 2024 ceremony.

Financial terms of the deal, which was approved by California’s attorney general, were not disclosed. — Reuters

GCredit hits 2M customers

CIMB BANK Philippines, Inc. on Tuesday said it reached two million customers on its revolving credit line GCredit, which is available on GCash, in April.

With this, GCredit raised its credit limit in April to P50,000 from P30,000, and lowered the minimum amount due to 10% of customers’ principal balance from 15%, it said in a statement.

“CIMB has always been committed to providing financial solutions that are convenient, accessible and provide real value,” CIMB Chief Executive Officer Vijay Manoharan said. “GCredit is a testament to this mission.”

The partnership with GCash helps drive financial inclusion, he added, noting that the higher credit limit and lower minimum amount due makes GCredit more accessible to Filipinos.

These would also reduce financial stress and allow flexible terms that customers have come to associate with GCash, GCash President and CEO Martha Sazon said.

CIMB said GCredit could be activated without the need for income documents, and could be used for cashless payments in all GCash QR-accepting merchants, bill payments and online purchases in selected e-commerce merchants.

GCredit has been powered by CIMB since April 2021. The bank’s assets stood at P30.258 billion at the end of last year, according to data from the central bank. — Aaron Michael C. Sy

RELX to ‘work closely’ with DTI for stricter vape products sale

PHILIPPINE STAR/EDD GUMBAN

VAPE manufacturer RELX said it is collaborating with the Department of Trade and Industry (DTI) to tighten monitoring efforts on the sale of vape products in the Philippines.

“We will work closely with the DTI to identify and address any instances of non-compliance by vape product sellers,” RELX International External Affairs Head Patrick C. Drilon said in a statement on Tuesday.

Mr. Drilon said this after Trade Secretary Alfredo E. Pascual ordered the strict monitoring of sellers of vape products to ensure that the restrictions under Republic Act No. 11900, or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, are being observed.

The law sets guidelines and restrictions on the sale and distribution of vape products in the Philippines.

“RELX actively cooperates with government authorities to ensure the effective implementation of RA 11900. RELX fully supports government authorities in their efforts to enforce selling regulations and take necessary actions against any violations,” Mr. Drilon said.

Previously, the DTI announced that it had confiscated 13,784 vape products worth P4.25 million from noncompliant vape stores, while it issued notices of violation to 72 firms.

It said most of the violations were related to rules on product packaging requirements; sale of vaporized nicotine and non-nicotine products, their devices, or novel tobacco products; restrictions on product communication, advertisements, and sponsorships; and prohibition on the use of nicotine and non-nicotine products in public places.

Mr. Drilon said RELX supports efforts to stop the illicit trade of vapor products, adding that consumer safety is a “top priority” of the company.

“RA 11900 plays a crucial role in ensuring the safe sale of vape products in the country,” Mr. Drilon said.

“We laud and support the efforts of the DTI in monitoring and ensuring that all sellers of vape products comply with the stipulated rules and regulations,” he added. — Revin Mikhael D. Ochave

How PSEi member stocks performed — June 13, 2023

Here’s a quick glance at how PSEi stocks fared on Tuesday, June 13, 2023.


Philippine stocks climb before US inflation data

BW FILE PHOTO

PHILIPPINE SHARES barely moved on Tuesday as investors await US inflation data for April that could dictate the US Federal Reserve’s monetary policy move.

The benchmark Philippine Stock Exchange index (PSEi) inched up by 0.002% or 0.11 point to close at 6,507.26. The broader all-share index slid by 0.25% or 8.93 points to 3,467.25.

“The index ended the day flat but with increased value turnover as investor sentiment was at an equilibrium between bargain hunters and cautious traders ahead of US May inflation data,” Juan Paolo E. Colet, managing director at China Bank Capital Corp., said in a Viber message.

“The market would want to see continued deceleration in US inflation figures, which could give the Fed leeway to forego any rate hikes in the near term,” he added.

Many investors were waiting for US inflation data, “which would likely determine market sentiment,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.

The June Federal Open Market Committee meeting will happen this week and it is expected to come out with a statement on Wednesday.

“Back at home, the key economic releases for this shortened week are the March foreign direct investments on June 13 and April cash remittances on June 15,” he added.

The US Fed raised it benchmark overnight interest rates by 25 basis points (bps) at its policy meeting last month. It has raised fund rates by 500 bps since March 2022 to 5%-5.25%. Its next policy meeting is set for June 13-14.

Back home, majority of sectoral indices fell on Tuesday.  Services went up by 0.13% or 2.11 points to 1,543.87, while holding firms rose by 0.12% or 7.93 points to 6,483.17.

Meanwhile, industrials fell by 0.62% or 57.79 points to 9,209.04; mining and oil slid by 0.45% or 46.42 points to 10,064.59; financials declined by 0.26% or 4.82 points to 1,841.59; and property fell by 0.005% or 0.14 points to 2,626.84.

Value turnover inched down to P5.51 billion, with 517.1 million shares changing hands.

Decliners outnumbered advancers 127 versus 68, while 43 stocks were unchanged.

Net foreign selling increased to P217.41 million from P202.11 million on Friday. — AHH

Peso rises on Fed bets, easing US inflation

BW FILE PHOTO

THE PESO strengthened against the dollar on Tuesday as the market looked to the US Federal Reserve’s next policy move amid an expected easing in inflation.

It closed at P55.95 a dollar, up by 10 centavos from Friday’s P56.05 finish, data from the Bankers Association of the Philippines’ website showed.

The currency opened at P56.09 a dollar. It weakened to as much as P56.13 and strengthened to as much as P55.93 a dollar.

Dollars traded dipped to $834.75 million from $979.2 million on Friday.

“The peso appreciated due to expectations of a likely weaker US consumer inflation report for May 2023,” a trader said in an e-mail.

It was expected to ease to 4.1% from 4.9% in April, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

The peso also appreciated after the dollar fell against other currencies ahead of a possible pause in the Fed’s tightening cycle that could be matched locally, he said.

The dollar edged broadly lower on Tuesday but traded in a narrow range, as investors remained cautious ahead of key US inflation data due later in the day just as the Federal Reserve kicks off its two-day monetary policy meeting, Reuters reported.

The US dollar index fell by 0.17% to 103.40, languishing near Monday’s trough of 103.24, its lowest since May 23.

The US central bank raised borrowing costs by 25 basis points (bps) last month, bringing the Fed fund rate to 5-5.25%. It has increased borrowing costs by 500 bps since March 2022.

The Federal Open Market Committee will review policy on June 13-14.

Mr. Ricafort said the US consumer price index (CPI) is expected to ease to 4.1% in May from the 4.9% in April.

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) paused its aggressive monetary tightening last month and signaled it would hold its key rate at its next two to three meetings.

The BSP has raised policy rates by 425 bps since May 2022. The Monetary Board will review policy on June 22. 

The peso was also supported by lower global crude oil prices recently, Mr. Ricafort added.

Oil prices traded up on Tuesday on bargain hunting, recovering some ground from the previous day’s plunge, but gains were limited as investors remained cautious ahead of key policy decisions by the US Federal Reserve and other central banks.

Brent crude futures climbed 77 cents or 1.1% to $72.61 a barrel by 0640 GMT. US West Texas Intermediate (WTI) crude was at $67.68 a barrel, up 56 cents or 0.8%.

Both benchmarks fell around $3 a barrel on Monday after analysts highlighted rising global supplies and concerns about demand growth just ahead of key inflation data and a two-day Fed monetary policy meeting concluding on Wednesday.

For Wednesday, the trader said the peso could strengthen further on expectations of a subdued US producer inflation report.

Both the trader and Mr. Ricafort sees the peso trading from P55.85 to P56.05 a dollar. – Aaron Michael C. Sy

Food stamp pilot run gets the nod; lactating mothers among priorities

A MOTHER holds her newborn after giving birth at a temporary field hospital set up in the island province of Dinagat in the aftermath of Typhoon Odette (international name: Rai) in December 2021. — DINAGAT ISLAND PIO

PRESIDENT Ferdinand “Bongbong” R. Marcos, Jr. wants lactating mothers and single parents to be among the beneficiaries of the social protection agency’s food stamp program, which he has approved for a pilot run with funding from multilateral and foreign government aid agencies.

“The President approved the run of the pilot, which is fully funded through grants,” Social Welfare Secretary Rexlon T. Gatchalian told a news briefing on Tuesday after a Cabinet meeting with Mr. Marcos Jr.

He said the grants will come from the Asian Development Bank (ADB), Japan International Cooperation Agency, and the French Development Agency.

“So, that will be $3 million all in all.”

Mr. Gatchalian said the government is still eyeing to expand the pilot run.

“The ABD is still working on another trust fund so that we can expand the pilot,” he said. “But other than that, it’s all green light, go na for the pilot which will take place shortly.”

Under the program, the social welfare department will release electronic cards with food credits worth P3,000. The cards can be used by beneficiaries to buy a “select list” of food commodities from accredited sellers.

Last month, Mr. Gatchalian said the food stamp program will be tested in July in sites with different geopolitical characteristics, including an area in the Bangsamoro region in southern Philippines. It will also be tested in remote provinces, in an urban poor setting, in a calamity-stricken area, and in a rural poor area, he said at that time.

At the Tuesday Cabinet meeting, the president specifically asked the Department of Social Welfare and Development (DSWD) to ensure that pregnant and lactating mothers and single parents will benefit from the program, Mr. Gatchalian said.

“Aside from the target beneficiaries of bottom one million households, the President wanted to make sure that single parents, and pregnant and lactating women will be included to address the first 1,000 days advocacy,” the DSWD chief said in mixed English and Filipino.

He said the first 1,000 days from pregnancy until lactation is a “crucial period” as it could cause irreversible effects on a child’s health, noting that studies showed that stunting already happens by the time some children reach daycare.

Mr. Gatchalian said there are already existing government programs that focus on the first 1,000 days of a child. “But what the President wants is for us to synchronize these programs.”

He cited the World Bank-backed Philippine Multi Sectoral Nutrition Program, which was launched more than two months ago. The four-year program is financed by a $178.1-million or about P9.7-billion loan approved by the World Bank last year.

“The problem of stunting is very important and very crucial to address if we are to invest in human capital,” Mr. Gatchalian said.

One in every five Filipino children aged 0 to 23 months old and 28.7% of children below 5 years old are stunted, Health Secretary Teodoro J. Herbosa said at the same briefing.

“That’s high.”

For its part, the Department of Health will ensure that the food stamp program is “changing the people that are severely malnourished… until they’re no longer malnourished.”

Mr. Herbosa said the Department of Interior and Local Government will also help in executing the program at the local level.

Mr. Herbosa also said it’s important for the government to implement unified programs that target the first 1000 days of a child because “brain development starts in the womb and then it continues with mandatory breastfeeding.”

“The focus of the past has been the school age. You fully develop an adult brain by the time we go to school. So even if I do the feeding, the damage has happened,” he said.

A Social Weather Stations (SWS) poll in May showed that half of Filipino families or 14 million households described themselves as poor in the first quarter of 2023 — a steady figure from the December poll.

In terms of employment, think tank Ibon Foundation said that by hours worked, the number of people employed full time fell by 568,000 between Dec. 22 and March 23. Those in part-time work increased by 15,000.

It said that by class of workers, employment in private establishments fell by 475,000 to 23.1 million in March.

With no formal wage and salary work in enterprises so scarce, 21.1 million Filipinos were struggling with the low or no pay from self-employment and informal work, Ibon said. — Kyle Aristophere T. Atienza

50 police officers face criminal raps over P6.7-B drug cover-up

PHIIPPINE STAR/ EDD GUMBAN

THE NATIONAL Police Commission (Napolcom) and the Philippine National Police have filed criminal complaints against 50 cops linked to the P6.7 billion worth of drugs seized in Manila last year, according to the Department of the Interior and Local Government.

At a livestreamed press conference, Interior Secretary Benjamin C. Abalos, Jr., who chairs the Napolcom, said the complaints were based on security camera footage of police officers allegedly attempting to steal 42 of the 990 kilograms of crystal methamphetamine, known in the Philippines as shabu.

“The Napolcom and the (police) Special Investigation Task Group have gone through everything — the testimonies, the evidence, and many things were seen here,” Mr. Abalos Jr. said in mixed English and Filipino.

The complaints were filed before the Office of the Ombudsman on June 9. It involves malversation of public property, violating the Anti-Graft and Corrupt Practices Act and the Dangerous Drugs Act.

The officers will also face administrative cases such as grave misconduct and neglect of duty, which could lead to their dismissal and forfeiture of benefits, he added.

Mr. Abalos said filing the cases was part of his agency’s efforts to weed out erring cops and restore the police force’s image.

Last month, national police chief General Benjamin C. Acorda, Jr. said cops arrested 24,197 suspects in more than 18,000 anti-illegal drug raids this year.

Law enforcers had seized this year around $110 million or about P6.16 billion worth of illegal drugs as of May 27.

Mr. Acorda Jr. told a news briefing on May 29 that the agency would continue investigating cops to ensure they remain clean.

“We will continue vetting and investigating the backgrounds of our drug enforcement officers to make sure that none of them turn to the wrong path,” he said in mixed English and Filipino.

That same month, Mr. Abalos said a five-man advisory panel had recommended the filing of criminal and administrative charges against four senior police officers over their alleged ties to the illegal drug trade.

He earlier called on all colonels and generals to resign after a probe found many top police officers were involved in illegal drugs. Almost a thousand senior police officers had submitted their courtesy resignations, Mr. Abalos told a news briefing on May 8. — John Victor D. Ordoñez

Taguig asks SC to look into Makati mayor’s claims on land row

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TAGUIG City Mayor Laarni L. Cayetano has asked the Supreme Court (SC) to look into alleged false claims made by Makati Mayor Marlen Abigail Binay-Campos about the two cities’ three-decade territorial dispute over the Fort Bonifacio military reservation and adjacent villages.

In a motion filed on Tuesday, Ms. Cayetano sought a show-cause order to require the Makati mayor to explain why she supposedly claimed in a media interview that Makati City received an order from the High Court on oral arguments for the case.

Ms. Binay did not immediately reply to a Viber message seeking comment.

“Respondent City of Taguig is committed to defending the integrity and honor of the honorable court and judicial processes and does not believe in these claims,” according to the motion.

Court spokesperson Brian Keith Hosaka earlier said he did not have information about the supposed oral arguments on the case.

In April, the tribunal ruled with finality on the case as it upheld Taguig City’s ownership of the 729-hectare Bonifacio Global City Complex and several villages.

It previously ruled in Taguig’s favor in a December 2021 decision.

A trial court in 1994 stopped the Makati City government from exercising jurisdiction over parcels of land that made up Fort Bonifacio, including the so-called Inner Fort that comprises the villages of Pembo, Comembo, Cembo, South Cembo, West Rembo, East Rembo and Pitogo.

The Philippine Army headquarters, Navy installation, Marines’ headquarters, Consular area, Joint US Military Assistance Group area, Heritage Park, Libingan ng mga Bayani, AFP Officers Village and six villages are in these areas. — John Victor D. Ordoñez