Red Bull maker appeals DOJ ruling

The Thai manufacturer of Red Bull energy drink has asked Justice Secretary Leila de Lima to overturn a resolution issued by her subordinate, who ruled in favor of a disgruntled former distributor in the Philippines.

T.C. Pharmaceutical Industries Co. Inc. (TCPI), manufacturer of Red Bull, and distributor Maryland Distributors Inc. (MDI) said they were shocked by the resolution issued by Justice Undersecretary Jose Vicente Salazar on June 21, ordering the Legazpi City prosecutor to file criminal charges against them for alleged unfair trade competition and conspiracy to commit fraud through misbranding.

TCPI and MDI argued that there was no unfair competition.  “How can a manufacturer be sued for unfair competition for its very own product when there are no competing products to begin with?” TCPI legal office manager Prasit Somnet asked.

TCPI said even the Office of the Secretary of the DOJ also ruled in its resolution dated May 24, 2010 that there was no unfair competition to speak of as these Red Bull products are genuine as certified by no less than the manufacturer itself, TCPI.

“We decry what we perceived to be an unjust and erroneous ruling,” TCPI and MDI said.

In his resolution, Salazar found the officers of TCPI and MDI liable for alleged violation of the country’s Intellectual Property Code and the Food, Drug and Cosmetic Act.

“How can we be remotely said to be in violation of the said law, when we are in truth and in fact, the owners of the intellectual property right, which in this case is the Red Bull brand?” TCPI said.

TCPI and MDI have filed their respective motions for reconsideration with the DOJ. TCPI said the resolution was issued while De Lima was on leave.

The case stemmed from a complaint filed by Energy Food and Drinks Inc. (EFDI), a disgruntled former distributor of Red Bull.

TCPI said it has terminated its contract with EFDI for just cause and appointed MDI as its authorized distributor in the Philippines.

TCPI said the resolution besmirches its reputation as among the largest private sector investors from Thailand that have made significant contributions to the Philippines, being the owner and manufacturer of the world-renowned energy drink Red Bull.

“Our good name and reputation is being threatened anew by a groundless criminal allegation that a former distributor lodged against us,” TCPI said in a letter to De Lima.

“With regard to our investments here, we are proud to say that we have attached great importance to business transparency, ethics as well as the practice of corporate social responsibility,” it said.