Filipino brands urged to protect designs as Carry Om-SM dispute puts IP rights in focus

Intellectual property rights agency says registering designs is an investment, not an expense, as Philippines ranks 52nd in global innovation index.

A small Filipino brand can spend years building a product, only to find itself fighting over who owns the design. That is precisely why the Intellectual Property Office of the Philippines (IPOPHL) is urging entrepreneurs to treat intellectual property as part of the cost of doing business.

The advice comes as the agency weighs in on the dispute between bag brand Carry Om and SM Retail, after founders Viktoria Salazar and Dhanvan Saulo accused the retail giant of selling bags that resembled their designs under a different label.

The couple said customers alerted them to the bags being sold at SM Mall of Asia, SM Megamall and SM Makati. They also said the alleged copying came after Carry Om declined an invitation to become “a part of the SM ecosystem.”

IPOPHL Director General Teodoro Pascua said the dispute could have been easier to resolve if Carry Om had formally documented its design ownership.

“This is what we’ve been telling our MSMEs. Intellectual property (IP) is not an expense. It is an investment. Nagsisimula ka pa lang, IP mo na yan. Either trademark, design,” Pascua said.

He estimated that registering a design could have cost only around ₱5,000 to ₱10,000 per design. Without registration, proving ownership and defending a claim can become far more difficult and potentially require legal expenses.

“They say it’s expensive, but now that you are violated, which is more expensive?” Pascua said.

Pascua stressed that Carry Om still has other legal avenues despite the lack of formal registration.

The dispute comes as the Philippines continues to build its innovation credentials. The country slipped to 52nd out of 139 economies in the 2026 Global Innovation Index, from 50th last year, but remained in the upper half of the rankings.

The Philippines ranked 49th in innovation outputs and posted gains in creative outputs, industrial designs and patents. It also ranked fourth globally in high-tech exports and 15th in creative goods exports.

The country is producing ideas, products and brands worth protecting. Small businesses need to make sure they can prove ownership before a dispute forces them to spend heavily defending it.

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