Japan Home, a Philippine corporation, operated DAISO retail stores selling various types of housewares. On 30 April 2007, Japan Home registered the mark DAISO for goods and services in classes 21 and 35.
On 9 February 2009, Daiso, filed a cancellation action at the IPO’s Bureau of Legal Affairs (BLA) against Japan Home’s registration of the DAISO mark. Daiso argued that it is the prior user and owner of the mark since 1977, that it uses the mark as a trade name worldwide. Daiso said that Japan Home’s registration was fraudulent, intended to ride on the goodwill of Daiso. In response, Japan Home relied on the "first-to-file rule" and challenged the claim that the Japanese company's DAISO mark is well-known.