One of the biggest distributors of hand tools in the US has been charged before the Department of Justice (DOJ) for alleged violation of Intellectual Property Rights (IPR) for selling counterfeit products of its own Sweden-based supplier.

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Charged for violation of Republic Act 8293 was Wilfred Co, president of Herco Trading Inc. The complaint was filed by the Sweden-based firm Kapman Aktiebolag (Kapman AB), through its attorney-in-fact Jairius Abiera.

Abiera said that Kapman AB is the registered owner of the "Bahco" trademark and the "Fish & Hook" device marks of hand hacksaw blades and claw hammers.

In a seven-page complaint affidavit, he claimed that in 2009 he received information that fake Bahco and Fish & Hook products were being sold by Herco, which, incidentally, is also one of the authorized importers and distributors.

Herco Trading, he added, also accounts for at least 60 percent of all sales in the Philippines, with total annual sales of about $6 million or nearly P300 million, he added.

After conducting several months of investigation and surveillance of Herco's various offices and warehouses, Abiera said he was convinced that Herco was indeed engaged in illicit sales activity.

On March 26, the complainant said that a test buy made through the help of police at Herco's warehouse in Marilao, Bulacan which proved that the firm was indeed selling fake products.

On April 19, the Bulacan police, armed with a search warrant, raided the warehouse and seized more fake products, including a stamping machine.
The complainant said it was obvious that the seized machines were being used in the illicit activity as all products bearing the Bahco and/or Fish & Hook device marks are imported into the Philippines as finished goods, complete with all brandings.

"The acts of respondent/Herco Trading Inc. severely affected complainant's business and its goodwill built over the years," the complaint said, adding that "it translates to a loss of business of around $4.4 million in just one year's time."

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