Franchising 2025

PHILIPPINES Trends and Developments Contributed by: Patricia A O Bunye, Anica Angela G Gomez, Angel Rae N Balbin and Bianca Marie J Angela M Rañola, Cruz Marcelo & Tenefrancia

The Philippine franchising industry has entered its “Golden Age”, with a multi-billion valuation and tremendous growth trajectory in 2025. While it has secured the top spot as a franchising hub in Southeast Asia, the Philippine franchising industry is still expect - ed to experience upward growth with the continuous influx of local and foreign brands looking to establish their footprint in the Philippines and worldwide. In recognition of the franchising industry’s contribution to overall economic growth, reforms in Philippine intel - lectual property law reinforce the ways through which new and existing franchises can continue to thrive in the Philippines. To this end, recent legal developments have enhanced enforcement mechanisms to ensure the protection of the intellectual property and goodwill established by franchise businesses over the years. Register of Well-Known Marks Primarily to safeguard the rights of well-known fran - chise brands, the Philippine Intellectual Property Office (IPO) has issued Memorandum Circular No 2025-009 , or the Rules and Regulations for the Declaration and Creation of the Register of Well-Known Marks (the “Regulations”), which took effect on 28 April 2025. In 2007, the Philippine Supreme Court issued a land - mark decision declaring “IN-N-OUT” as a well-known mark – the first mark to receive this formal declaration in the Philippines. Eighteen years later, the Regula - tions have streamlined the process for obtaining a declaration of well-known status by establishing a Register of Well-Known Marks (the “Register”), an ex parte system through which trade mark owners can obtain a declaration that its marks are well-known without having to participate in adversarial litigation. The Register is especially valuable considering that it is not uncommon for owners of well-known marks to become aware of infringing or confusingly similar applications or registrations only upon encountering them as citations in the course of their own filings, by which time the appropriate recourse involves costly and time-consuming proceedings. Most of the time, these opposition, cancellation or intellectual property violation filings are resolved without even addressing the well-known status of the mark concerned. Now,

the declaration may be issued simply on the basis of the applicant’s evidence. Application process and criteria To apply, trade mark owners must submit a notarised application for the declaration of a well-known mark, together with evidence that the mark is well-known or falls under the criteria below, and other information on the mark required by the IPO. All submissions need only be filed via email. The criteria for determining whether a mark is well- known are as follows (with the first four being manda - tory criteria that must be proven): • the duration, extent and geographical area of any use of the mark; • the market share in the Philippines and other coun - tries; • the degree of inherent or acquired distinction of the mark; • the quality, image or reputation acquired by the mark; • the extent to which the mark has been registered worldwide; • the exclusivity of registration attained by the mark worldwide; • the extent to which the mark has been used world - wide; • the exclusivity of use attained by the mark world - wide; • the commercial value attributed to the mark world - wide; • the record of successful protection of the rights over the mark; • the outcome of litigations dealing with the issue of whether the mark is well-known, if any; and • the presence or absence of identical or similar marks validly registered for or used on identical or similar goods or services, and owned by persons other than the person claiming that their mark is a well-known mark. Should the applicant’s evidence be sufficient, the examiner shall recommend the mark’s approval to the Director of Trademarks, and a decision on the declara - tion of the mark as well-known shall be issued, which shall then be published in the E-Gazette. The Director

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