IPOPHL helps SMFB, GLRI sign first compromise agreement under Mediation Outside Litigation

October 7, 2024

San Miguel Food and Beverage, Inc. (SMFB) and Gold Label Resources, Inc. (GLRI) have signed a compromise agreement that covers 12 trademark disputes and concerns, marking the first successful settlement made under the Mediation Outside Litigation (MOL) services of the Intellectual Property Office of the Philippines (IPOPHL).

SMFB and GLRI signed the compromise agreement on September 30, 2024 at the IPOPHL Multipurpose Hall. The agreement involves 12 cases and concerns which consists of two under appeal, four as inter-partes cases and six lodged under the MOL. The MOL is a service of the Bureau of Legal Affairs (BLA) intended to provide an option for parties to settle their IP concerns even before a dispute arises. 

The dispute stemmed from SMFB’s concerns over GLRI’s use of the former’s registered trademark GOLD LABEL, alleging that their uses were similarly confusing. 

Under Section 123 of the Intellectual Property Code of 1997, a trademark is not registrable if it nearly resembles an existing registered mark, such that it is likely to deceive or cause confusion. In cases the allegedly confusing trademark obtains registration, a petition to cancel can be filed at IPOPHL’s BLA. 

However, instead of elevating the dispute for adjudication, parties agreed to first take the MOL and mediation tracks to expedite the resolution of their six pending cases.

Mediation for collaboration

Director General Rowel S. Barba lauded the BLA and the parties for finding an amicable solution through mediation, noting the benefits that extend beyond dispute resolution.

“It paves the way for healthier relationships, encourages open communication and ultimately contributes to a culture of collaboration. In a time when division seems all too prevalent, this achievement reminds us of our capacity to bridge divides and work together for a better future,” Barba said. 

Deputy Director General Nathaniel S. Arevalo echoed this sentiment and encouraged companies not to burn bridges with competitors who could emerge as potential partners. 

“In a highly competitive landscape, fostering alliances is essential for long-term success as this could lead to shared resources, innovative solutions and stronger market positions. Ultimately, building alliances can enhance resilience and growth in an increasingly interconnected business environment,” the BLA chief added.

BLA Officer-in-Charge Christine V. Pangilinan-Canlapan encouraged others to promote mediation as a first step in conflict resolution. 

“Together, as we honor the voices of all parties involved in creating solutions, we can advocate for trust and harmony to be the foundations of our society and future,” Pangilinan-Canlapan said. 

The MOL is a service offered by the BLA’s Alternative Dispute Resolution Services Division. At present, 

Agreements settled under the MOL are enforceable and legally binding. # # # (Janina Lim, Information Officer III)