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    Even engines can be
    faked, Honda has found
     
    By Roderick L. Abad
    Reporter
     

    IF you can’t lick them, crack them.

    Honda Philippines Inc. (HPI), in coordination with its principal Honda Motor Co. Ltd. (HMC), destroyed on Wednesday 22 fake Honda general-purpose engines at the De La Salle University, Bacolod premises, in place of a motion to withdraw seized articles for destruction it filed before the Regional Trial Court of Bacolod City in June.

    “Honda Philippines is not only concerned with protecting its intellectual property rights but is more concerned with the safety of the public who would be in danger of using inferior products,” Tetsuro Matsumoto, assistant to the president of HPI, told the BusinessMirror in an e-mail interview.

    For his hard-line stance against counterfeiting as an invasion of ones’ IP rights, HPI assistant vice president for legal lawyer Brigido Valmadrid  said, “Honda will continue to create new and better products out of its own ingenuity and innovative talents and reaffirm its commitment to protect the interest of consumers against fake products.”

    He also commended the government’s stepped-up fight against pirates and infringers as “a big positive step in protecting these rights. The strong cooperative efforts between the IP owners and the law-enforcement agencies will definitely frustrate the malpractices of unscrupulous businessmen who ride on the popularity of well-known brands.”

    During the destruction activity granted by Judge Roberto Chiongson of Bacolod RTC, Branch 50, all the fake Honda general-purpose engines were drilled and pounded into pieces to make sure that nothing can be salvaged for reuse. 

    The destroyed 22 fake Honda engines were the items seized by National Bureau of Investigation (NBI) agents in a simultaneous raid they conducted two years ago at the three dealership establishments owned by Jose Zulueta—the New Ultra Parts Inc., Fieldmaster Agro & Industrial Sales Inc. and Super Ace Marketing Inc.

    The destroyed items, comprised of the GX 390 and  GX 160, among other models, were sourced by the offender from a local dealer, who’s importing the face engines from China, said Editha R. Hechanova, lead counsel of HMC.

    In May 2006, Hechanova, on behalf of HMC and HPI, executed and filed three separate affidavit-complaints with the Department of Justice (DOJ) against the owner of the erring enterprises.

    Meanwhile, pending the preliminary investigation of the three legal suits she filed against the infringer, the respondent amicably settled the dispute with the Japan-headquartered motor company by executing an undertaking, which the latter and its Philippine subsidiary accepted.

    Under the compromise agreement, the offender will cease and desist from peddling products breaching the Honda trademark, whether directly or indirectly; forever refrain from dealing in products similar to any and all models of Honda products; not infringe the IP rights of HMC and HPI, and not to conduct any activity that will be interpreted as unfair competition; and cause publication of a public apology in two newspapers of general circulation.

    “This [the case] is Honda’s way of stopping these counterfeiters from their illegal operations that give them a bad name,” said Hechanova, one of the managing partners of Hechanova Bugay & Vilchez law firm.

    Honda has been the market leader since the local introduction of its general-purpose engines in 1991.

    Known for its superior quality, these powerful products captured 39.38 percent of the market in 2006, or an increase of 9.37 percent from the recorded share of 30.01 percent in 2000, according to sales reports for the years 2000 to 2007 by the Agricultural Machinery Manufacturers and Distributors Association Inc.

    The Honda general-purpose engines, which are manufactured either in Japan or Thailand, are compact in size and used for marine purpose (motor of  banca), agriculture (sprayers, blowers, micromill), transportation (motorized  trisikad) and cons-truction.

    As to their identification, Hechanova said that genuine Honda general- purpose engines are easy to distinguish from the counterfeit ones with the former’s distinctive color combination of red, black and white.

    Moreover, she pointed out that the motor company only uses “Honda” as its trademark, with no alterations from other brand names like “Honda Technology,” as used by the violating Bacolod-based Honda dealer.    

    While the “copycat” engines are obviously cheap by one-half of the original price of genuine Honda engines at P10,000 to P12,000, quality-wise, however, the HMC legal counsel warned that “fake Honda engines are corroded and defective.”

    When asked about the effect of counterfeiting of Honda general-purpose engines on the business of the motor giant in the Philippines, Hechanova referred to the affidavit of complaint filed by the company against another counterfeiter of similar case stating that the motor firm “has been unable to meet our sales target from the time the China copies have been introduced to and proliferated in the market.”

    The sworn statement further says that Honda estimates that its net loss is about P250,000 monthly, or P3 million annually, from fake versions of Honda general-purpose engines.

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