PHILIPPINES Law and Practice Contributed by: Katrina Doble, Danielle Francesca San Pedro, Maria Patricia Cruz and Kyle Gino Salazar, Villaraza & Angangco
Exemplary or punitive damages may be claimed where the infringement was committed in a fraud - ulent or wilful manner. A claim for exemplary dam - ages must be supported by convincing evidence of the acts constituting the fraud involved in the infringement. Where actual intent to mislead the public or to defraud the complainant is shown, the court may double the damages awarded. The measure of the damages suffered will be either: • the reasonable profits the complaining party would have made had the defendant not infringed its rights; or • the profits the defendant actually made out of the infringement. If such measure of damages cannot be readily determined with reasonable certainty, the court may award damages as a reasonable percent - age based on: • the defendant’s gross sales; or • the value of the services in connection with which the mark was used. Copyright In a copyright infringement case, the copyright owner may be awarded: • actual damages, including legal costs and other expenses incurred due to the infringe - ment; and • profits made by the infringer as a result of the infringement. To prove profits, the plaintiff need only show sales, while the defendant must prove the costs they claim. Damages may be doubled if the defendant:
• circumvents technological protection meas - ures; or • removes or alters electronic rights manage - ment information without authority, or distrib- utes works with such information removed, knowing it was done unlawfully. Before the final judgment, the copyright owner may choose to recover statutory damages of not less than PHP50,000 instead of actual dam - ages and profits. When awarding statutory dam - ages, the court will consider factors such as the severity of the infringement, the defendant’s bad faith and the need for deterrence. If the infringer was unaware or had no reason to believe their actions were infringing, the court may reduce the statutory damages to a maximum of PHP10,000. 10.3 Attorneys’ Fees and Costs The losing party will bear the costs. If the defendant prevails, attorneys’ fees and litigation expenses, aside from judicial costs, generally cannot be recovered unless specifically agreed upon. Regardless, these may be awarded in the following situations: • when exemplary damages are granted; • if the defendant’s actions forced the plaintiff to litigate with third parties or incur expenses to protect their interests; • in criminal cases of malicious prosecution against the plaintiff; • in cases where a civil action against the plain - tiff is clearly baseless; • when the defendant acts in gross bad faith by refusing to settle a valid and demandable claim; • in cases involving legal support claims; • for the recovery of wages for household help - ers, labourers and skilled workers; • in actions for indemnity under workers’ com - pensation or employer liability laws;
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