One of the most heated brand battles between San Miguel Food and Beverage Inc. (SMFB) and noodle and food maker Gold Label Resources Inc. (GLRI) have agreed on a compromise over 12 trademark disputes, the Intellectual Property of the Philippines announced on Monday.

The settlement marked the first successful settlement made under the Mediation Outside Litigation (MOL) scheme of the IPOPHL.

On 30 September, SMFB and GLRI signed the compromise agreement.

The MOL is a service of the Bureau of Legal Affairs (BLA) intended to provide an option for parties to settle their IP concerns even before a case is filed.

According to the IPOPHL, the dispute stemmed from SMFB’s concerns over GLRI’s use of the name “Gold Label” which is carried by the San Miguel Corp. unit.

SMFB alleged that GLRI’s use of the brand name was confusing.

Under Section 123 of the Intellectual Property Code of 1997, a trademark is not registrable if it nearly resembles an existing registered mark, such that it is likely to deceive or cause confusion.

In cases where the allegedly confusing trademark obtains registration, a petition to cancel can be filed at IPOPHL’s BLA.

Nevertheless, instead of elevating the dispute for adjudication, the parties agreed to first take the MOL and mediation routes to expedite the resolution of their six pending cases.

Mediation for collaboration

With this, Director General Rowel Barba lauded the BLA and the parties for finding an amicable solution through mediation, noting the benefits that extend beyond dispute resolution.

“It paves the way for healthier relationships, encourages open communication and ultimately contributes to a culture of collaboration. In a time when division seems all too prevalent, this achievement reminds us of our capacity to bridge divides and work together for a better future,” Barba said.

Deputy Director General Nathaniel Arevalo echoed this sentiment and encouraged companies not to burn bridges with competitors who could emerge as potential partners.

“In a highly competitive landscape, fostering alliances is essential for long-term success as this could lead to shared resources, innovative solutions and stronger market positions. Ultimately, building alliances can enhance resilience and growth in an increasingly interconnected business environment,” the BLA chief added.

SMFB is publicly listed as one of the country’s largest food and beverage companies and currently operates in three business segments: beer and non-alcoholic beverages, spirits and food.

On the other hand, GLRI is a fully Filipino-owned and managed company that is one of the leading players in the trading, manufacturing and distribution of affordable, high-quality noodles and food products in the Philippines.