Flashcards Studio

Facts: A registered trademark for apparel, VIGORWEAR, is owned by NovaGale, Inc. and registered in the Philippines on June 15, 2012 (Class 25). For three consecutive years (2019–2021) there was no use of VIGORWEAR in commerce in the Philippines, and no Declaration of Use was filed. In 2022, a competitor, Trendline Apparel Co., files a petition for cancellation of NovaGale’s registration on the ground of non-use for three consecutive years. NovaGale contends that it has used the mark in commerce in the Philippines through its Philippine-licensed partner, ManilaThread, Inc., which packaged and labeled shipments bearing the VIGORWEAR mark for sale in the Philippines in 2020; it also asserts that its online store and social-media promotions targeted at Filipino consumers reach the Philippines and constitute use. (a) Identify the primary doctrine governing cancellation in this context and the controlling rule. (b) Apply the doctrine to the facts and decide whether the registration should be cancelled, explaining what constitutes “use in commerce” in the Philippines and whether use by a licensee or online advertising counts. (c) If cancellation is granted, what options does NovaGale have to regain rights or re-register the mark in the future, and what risks would it face?