Protecting brands in cyberspace and e-commerce transactions

Filipinos have largely shifted to e-commerce over the past five years, driven by the widespread adoption of contactless transactions following the pandemic.

- AMICUS CURIAE NINNA JOYCE P. DELANTAR

Philippine e-commerce has grown exponentially into a $25-billion industry, with the average Filipino spending P16,000 a year through e-commerce.While online shopping is now widely preferred due to its convenience and affordability, it also exposes consumers to instances of fraud — ranging from fake listings and counterfeit goods to fake seller accounts. As a result, the brand reputation of goods offered for sale may suffer, regardless of the manufacturer’s involvement in the transaction. In this regard, how can consumers and brands protect themselves against fraudulent internet transactions, and what role does the e-commerce platform play in regulating such fraud?

Under the Intellectual Property Code, the owner of a registered trademark may take action against, and recover damages from, a person who uses any reproduction or imitation of its mark in commerce which is likely to cause confusion or deception. Persons found guilty of such acts are also subject to criminal penalties. Thus, brands may seek redress against infringing online sellers for the latter's unauthorized use of their marks in e-commerce transactions. However, since the concept of secondary or contributory infringement does not apply to Philippine trademark law, brands cannot hold e-commerce platforms liable for hosting or facilitating the said transactions.