PHILIPPINES Law and Practice Contributed by: Susan D. Villanueva, Patricia A. O. Bunye, Rowanie A. Nakan and Ritz Angelica R. Alejandro, Cruz Marcelo & Tenefrancia
8.3 Responsibility for Paying the Costs of Litigation Court fees, expenses, and attorney’s fees are generally borne by each party involved. How- ever, the court, in its discretion, may order the losing party to reimburse the prevailing party’s attorney’s fees and litigation expenses under specific circumstances: • when the court deems the case to be frivo- lous or without merit; • if the losing party acted in bad faith, fraudu- lently, or with gross negligence; or • when the court grants exemplary damages, in cases involving the recovery of sums of money or damages. 9. Alternative Dispute Resolution 9.1 Type of Actions for Intellectual Property ADR is a common mechanism for settling IP disputes. IP rights cases filed in courts include mandatory CAM and, in certain instances, JDR. Under Article 2042 of the Civil Code, the same persons who may enter a compromise may also submit their controversies to one or more arbi- trators for decision. For cases filed before the IPOPHL, parties are required to undergo mandatory mediation. Dur- ing the ADR conference, parties are briefed on the mediation process, including the option to use the WIPO option for mediation or to submit the dispute to arbitration. The IPOPHL likewise offers mediation outside litigation to encourage parties to settle their IP dispute even before filing a case.
optional for the parties to attach a draft decision to their memoranda. 7.2 Type of Review An appeal before the Director General of the IPOPHL, and the Court of Appeals, may cover questions of laws or facts, or both. An appeal before the Supreme Court is generally limited to questions of law.
8. Costs 8.1 Costs Before Filing a Lawsuit
Before filing a patent infringement case, the interested party typically incurs several costs, such as: • hiring private investigators or other profes- sionals to gather evidence of infringement through market surveillance, sample purchas- es, and documentation; • the costs involved in drafting and sending formal warning letters (also known as cease- and-desist letters) to the alleged infringer to notify them of the infringement and seek voluntary compliance; and • expenses for preparing legal documents, filing the complaint, and other initial legal pro- cesses; these costs may also cover consulta- tions with a patent attorney for advice and strategy, retaining experts to provide testi-
mony, and other preparatory steps. 8.2 Calculation of Court Fees
The initiation of a patent infringement law- suit requires the payment of filing fees, which are computed based on the value of damages claimed.
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