"VERDE" Non-Use, an Unrecorded Assignment, and a License

The petitioner must establish that the mark has not been used in the Philippines for an uninterrupted period of at least three years, or whatever period the applicable provision requires, and that the petitioner is a person who believes it is or will be damaged. Non-use must be genuine; token use, use only in advertising without commercial sales, or use on unrelated goods does not count. The petitioner will likely rely on IPOPHL records and the absence of invoices in the registrant's name. The registrant then has the opportunity to rebut with evidence of actual commercial use during the period. The burden does not simply remain with the petitioner once a prima facie case of non-use is made; the registrant must come forward with credible use evidence. The registrant should organize evidence by date, product, volume, and channel, and should explain any gaps. A few isolated sales may be dismissed as token use, so the quality and continuity of the evidence matter.

Authorized use by a licensee generally counts as use by the registrant, because the licensee is using the mark under the registrant's control. An assignment transfers ownership, and the assignee's use should also count once the assignment is effective between the parties. The fact that the assignment and license were unrecorded is not automatically fatal to the use claim, but it weakens the registrant's position against third parties. Recordal is required for the assignment or license to be effective against third parties, and it makes the chain of title clear to the Bureau and to courts. Verde Holdings should record the assignment immediately and record the license, or at least submit the unrecorded documents with an explanation and a request to record. It should also prepare affidavits from ClearFlow and from distributors, and match invoices to delivery receipts and advertisements. The registrant should not rely only on the license document; it must show actual sales in the Philippines during the relevant period.

Verde Holdings should first fix the record: record the 2021 assignment, record the license, and ensure that the registered owner and the renewal filings will be consistent. It should also check whether a declaration of actual use or other post-registration filing was missed, because a defective record can invite cancellation or complicate renewal. If the competitor's cancellation petition is baseless, Verde Holdings may defend and seek dismissal; if the competitor is using a confusingly similar mark, it may consider an infringement or unfair-competition action. It should preserve evidence of continuous use and avoid gaps. The client should also consider whether the mark is at risk of becoming generic through widespread use of "verde" for water, and whether the license needs quality-control provisions. Finally, because the registration is due for renewal in 2028, counsel should docket the renewal and any accompanying use requirements well in advance.