Philip Morris

7/18/2019 Philip Morris

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PHILIP MORRIS, INC. VS. FORTUNE TOBACCO CORPORATION (Equal Standing o Int!"nationalLa# and Muni$i%al La#&

P!tition o" "!'i!# und!" Rul! ) o t*! Rul!+ o Cou"t, petitioners Philip Morris, Inc., Benson &Hedges (Canada) Inc., and Fabriques de Tabac Reunies, .!. (now Philip Morris Products S.A.) +!! t*!"!'!"+al and +!tting a+id! o t*! ollo#ing i++uan$!+ o t*! Cou"t o A%%!al+ (CA& in CA-G.R. CVNo. 6661! PETITION DENIED

1. "ecision d#ted $#nu#r% &1, &''1 #ir*in+ #n e#rlier decision o the Re+ion#l ri#l Court o P#si+Cit%, r#nch 166, in its Ciil C#se No. /00/• "is*issed t*! $o-%laint o" t"ad!-a" in"ing!-!nt and da-ag!+ there#t co**enced %

the petitioners #+#inst respondent 2ortune o#cco Corpor#tion3 #nd&. Resolution d#ted M#% ', &''& den%in+ petitioners4 -otion o" "!$on+id!"ation.

FACTS OF THE CASE

P!tition!" P*ili% Mo""i+, In$., # corpor#tion (St#te o Vir+ini#, 5.S.A), is the "!gi+t!"!d o#n!"

o t*! t"ad!-a" /MAR0 VII1 o" $iga"!tt!+. (per Certiic#te o Re+istr#tion No. 10& issuedon April &6, 10 % the Philippine P#tents 7ice (PP7)

•

Si*il#rl%, petitioner B!n+on 2 H!dg!+ (Canada&, In$., # susidi#r% o Philip Morris, 8nc., is there+istered owner o the tr#de*#r9 /MAR0 TEN1 or ci+#rettes (PP7 Certiic#te o Re+istr#tionNo. 111/0)

• Fa3"iqu!+ d! Ta3a$ R!uni!+, S.A. (Swiss co*p#n%), #nother susidi#r% o Philip Morris, 8nc.,is the a++ign!! o t*! t"ad!-a" /LAR0,1 (r#de*#r9 Certiic#te o Re+istr#tion No. 1':)(ori+in#ll% re+istered in 16/ % ;i++et #nd M%ers o#cco Co*p#n%)

• R!+%ond!nt Fo"tun! To3a$$o Co"%o"ation, # co*p#n% or+#ni<ed in the Philippines,*#nu#ctures #nd sells ci+#rettes usin+ the tr#de*#r9 /MAR0.1

• Petitioners, on the cl#i* th#t #n in"ringe#en$ o" $heir respec$i%e $rade#ars h#d een co**itted,iled, on Au+ust 1, 1&, # Co-%laint o" In"ing!-!nt o T"ad!-a" and 4a-ag!+ #+#instrespondent 2ortune o#cco Corpor#tion, o the R!gional T"ial Cou"t o Pa+ig, r#nch 166.

T*! d!$i+ion und!" "!'i!# +u--a"i5!d #*at *a%%!n!d n!6t, a+ ollo#+o Pr#%er or the issu#nce o # %"!li-ina"7 in8un$tion, =petitioners> #lle+ed th#t the% #re orei+n

corpor#tions not doin+ usiness in the Philippines #nd #re suin+ on #n isol#ted tr#ns#ction.o Countries in which the% #re do*iciled +r#nt to corpor#te or ?uristic persons o the

Philippines the priile+e to rin+ #ction or inrin+e*ent, without need o # license to dousiness in those countries.

o =Petitioners> li9ewise *#niested =ein+ re+istered owners o the tr#de*#r9 @MAR V88B #nd@MAR NB

o re+istered the tr#de*#r9s in their respectie countries o ori+in % irtue o the lon+ #nd eDtensie us#+e o the s#*e, these tr#de*#r9s h#e

#lre#d% +#ined intern#tion#l #*e #nd #ccept#nce =respondent>, without #n% preious consent ro* #n% o the =petitioners>,

*#nu#ctured #nd sold ci+#rettes e#rin+ the identic#l #ndEor conusin+l% si*il#r

tr#de*#r9 @MARB h#e c#used #nd is li9el% to c#use conusion or *ist#9e, or would deceie

purch#sers #nd the pulic in +ener#l into u%in+ these products under thei*pression #nd *ist#9en elie th#t the% #re u%in+ =petitioners4> products.

o 8no9ed proisions o the Pa"i+ Con'!ntion o" t*! P"ot!$tion o Indu+t"ial and Int!ll!$tual

P"o%!"t7 (P#ris Conention)o Philippines is # si+n#tor%, =petitioners> pointed out th#t upon the reFuest o #n interested

p#rt%, # countr% o the 5nion *#% prohiit the use o # tr#de*#r9 which constitutes #reproduction, i*it#tion, or tr#nsl#tion o # *#r9 #lre#d% elon+in+ to # person entitled tothe eneits o the s#id Conention. 8n #ccord#nce #it* S!$tion 9:;A in "!lation toS!$tion 9< o R!%u3li$ A$t :==, #s #*ended, the% #re entitled to relie in the or* od#*#+es =#nd> the issu#nce o # writ o preli*in#r% in?unction which should e *#deper*#nent.

o =R!+%ond!nt> iled its Answer den%in+ =petitioners4> *#teri#l #lle+#tions #nd #erred =#*on+other thin+s> th#t /MAR01 i+ a $o--on #o"d, #*i$* $annot %a"ti$ula"l7 id!nti7 a %"odu$tto 3! t*! %"odu$t o t*! >%!tition!"+?

o Ater the ter*in#tion o the tri#l on the *erits tri#l court rendered its "ecision d#ted Noe*er ,1 di+-i++ing the co*pl#int #nd countercl#i* #ter *#9in+ # indin+ th#t the =respondent> didnot co**it tr#de*#r9 inrin+e*ent #+#inst the =petitioners>.

o T*! i++u! o #*!t*!" o" not t*!"! #a+ in"ing!-!nt o t*! >%!tition!"+@? t"ad!-a"+ 37 t*!

>"!+%ond!nt? #a+ li!#i+! an+#!"!d in t*! n!gati'!. 8t eDpounded th#t @in order or # n#*e,s%*ol or deice to constitute # tr#de*#r9, it *ust, either % itsel or % #ssoci#tion, point

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distinctl% to the ori+in or ownership o the #rticle to which it is #pplied #nd e o such n#ture #s toper*it #n eDclusie #ppropri#tion % one personB.

• M#int#inin+ to h#e the standing to sue in the local forum #nd th#t respondent h#s co**ittedtr#de*#r9 inrin+e*ent, petitioners #!nt on a%%!al to t*! CA. ( !ppella$e recourse doc9et CA-

G.R. CV No. 6661)o CA decision on $#nu#r% &1, &'' (while rulin+ or petitioners on the *#tter o their legal

capaci$' $o sue in $his coun$r' or tr#de*#r9 inrin+e*ent) ai"-!d t*! t"ial $ou"t@+d!$i+ion on t*! und!"l7ing i++u! o "!+%ond!nt@+ lia3ilit7 o" in"ing!-!nt.

• Motion o" "!$on+id!"ation d!ni!d 37 t*! CA (Resolution o M#% ', &'')

ISSUES

P!tition!"+ +!! %!tition o" "!'i!# (Cou"t o A%%!al+&

o (1) #*!t*!" o" not %!tition!"+, a+ P*ili%%in! "!gi+t"ant+ o t"ad!-a"+, a"! !ntitl!d

to !no"$! t"ad!-a" "ig*t+ in t*i+ $ount"7o (&) whether or not respondent h#s co**itted tr#de*#r9 inrin+e*ent #+#inst petitioners

% its use o the *#r9 @MARB or its ci+#rettes, hence li#le or d#*#+es.

• R!+%ond!nt issue the propriet% o the petition #s it #lle+edl% r#ises Fuestions o #ct.• he petition is eret o *erit.

• Petition r#ises oth Fuestions o #ct #nd l#wo qu!+tion o la# eDists when the dout or dierence #rises #s to wh#t the l#w is on #

cert#in st#te o #ctso qu!+tion o a$t when the dout or dierence #rises #s to the truth or #lsit% o #lle+ed

#cts Court is not the proper enue to consider #ctu#l issues #s it is not # trier o #cts 5nless the #ctu#l indin+s o the #ppell#te court #re *ist#9en, #surd,

specul#tie, conlictin+, t#inted with +r#e #use o discretion, or contr#r% to theindin+s culled % the court o ori+in, we will not distur the*

• P!tition!"+ contentions should e tre#ted #s purel% le+#l since the% #re #ss#ilin+ erroneousconclusions deduced ro* # set o undisputed #cts

• A /t"ad!-a"1 is #n% distinctie word, n#*e, s%*ol, e*le*, si+n, or deice, or #n%co*in#tion thereo #dopted #nd used % # *#nu#cturer or *erch#nt on his +oods to identi%#nd distin+uish the* ro* those *#nu#ctured, sold, or de#lt in % others.

o A tr#de*#r9 deseres protection.

PETITIONER

P!tition!"+ #ssert th#t, a+ $o"%o"at! national+ o -!-3!";$ount"i!+ o t*! Pa"i+ Union,

t*!7 $an +u! 3!o"! P*ili%%in! courts or inrin+e*ent o tr#de*#r9s, or or un#ir co*petition ,#it*out n!!d o o3taining "!gi+t"ation o" a li$!n+! to do 3u+in!++ in t*! P*ili%%in!+, and#it*out n!$!++it7 o a$tuall7 doing 3u+in!++ in t*! P*ili%%in!+.

o Ri+ht #nd *ech#nis* #re #ccorded %

S!$tion 9:;A o R!%u3li$ A$t (R.A.& No. :== or the T"ad!-a" La#, #s#*ended

A"ti$l! 9 o t*! Pa"i+ Con'!ntion o" t*! P"ot!$tion o Indu+t"ial P"o%!"t7 ,#9# Pa"i+ Con'!ntion.

• o$ doing business in $he Philippines does no$ #ean $ha$ cigare$$es bearing $heir $rade#ars are

no$ a%ailable and sold locall' . Citin+ Con'!"+! Ru33!" Co"%o"ation '. Uni'!"+al Ru33!"P"odu$t+, In$., such ##il#ilit% #nd s#le *#% e eected throu+h the ac$s o" i#por$ers anddis$ribu$ors.

Entitl!-!nt to %"ot!$tion !'!n in t*! a3+!n$! o a$tual u+! o t"ad!-a"+ in t*! $ount"7

o Philippines4 #dherence to the T"ad! R!lat!d A+%!$t+ o Int!ll!$tual P"o%!"t7 Rig*t+ o"

t*! TRIPS Ag"!!-!nto en#ct*ent o R.A. No. 9<, o" t*! Int!ll!$tual P"o%!"t7 Cod! (@8P CodeB)o #*e o # tr#de*#r9 *#% e #cFuired throu+h pro*otion or #dertisin+ with no eDplicit

reFuire*ent o #ctu#l use in loc#l tr#de or co**erce

• eore discussin+ petitioners4 cl#i*ed entitle*ent to enorce tr#de*#r9 ri+hts in the Philippines, it

-u+t 3! !-%*a+i5!d t*at t*!i" +tanding to +u! in P*ili%%in! $ou"t+ *ad 3!!n "!$ogni5!d,and "ig*tl7 +o, 37 t*! CA

o such right to sue does not necessarily mean protection of their registered marks

in the absence of actual use in the Philippines.

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hus cl#riied, wh#t %!tition!" s now h#rp #out is their !ntitl!-!nt to %"ot!$tion on t*! +t"!ngt* o"!gi+t"ation o t*!i" t"ad!-a"+ in t*! P*ili%%in!+.

HEL4DRATIO

As we ruled in G.R. No. 1&,1 !

:. RECIPROCIT REUIREMENT

• Re+istr#tion o # tr#de*#r9 +ies the re+istr#nt (petitioners) #d#nt#+es denied non-re+istr#nts or ordin#r% users (respondent)

o #lidit% o the re+istr#tiono ownership #nd the eDclusie ri+ht to use the re+istered *#r9s

• t*!7 -a7 not +u$$!++ull7 +u! on t*! 3a+i+ alon! o t*!i" "!+%!$ti'! $!"tii$at!+ o

"!gi+t"ation o t"ad!-a"+.o Petitioners! +till o"!ign $o"%o"ation+

o $ondition to a'ail-!nt o t*! "ig*t+ and %"i'il!g!+ their t"ad!-a"+ in this countr%! 7n top o Philippine re+istr#tion, t*!i" $ount"7 g"ant+ +u3+tantiall7 +i-ila"

"ig*t+ and %"i'il!g!+ to Fili%ino $iti5!n+ pursu#nt to Section &1-A&' o R.A.No. 166.

• 8n L!'iton Indu+t"i!+ '. Sal'ado" o Court! "!$i%"o$it7 "!qui"!-!nt is # condition sine Fu# non to ilin+ # suit % # orei+n

corpor#tion 5nless #lle+ed in the co*pl#int, would ?usti% dis*iss#l

o $o-%lainant i+ a national o a Pa"i+ Con'!ntion; ad*!"ing $ount"7, it+ all!gation

t*at it i+ +uing und!" +aid S!$tion 9:;A #ould +ui$!, 3!$au+! t*! "!$i%"o$alag"!!-!nt 3!t#!!n t*! t#o $ount"i!+ i+ !-3odi!d and +u%%li!d 37 t*! Pa"i+Con'!ntion

3!ing $on+id!"!d %a"t o P*ili%%in! -uni$i%al la#+, $an 3! ta!n 8udi$ial

noti$! o in in"ing!-!nt +uit+.

9. REGISTRATION VERSUS ACUAL USE

• -!-3!"+ o t*! Pa"i+ Union do!+ not auto-ati$all7 !ntitl! %!tition!"+ to t*! %"ot!$tion ot*!i" t"ad!-a"+ in t*i+ $ount"7 ABSENT ACTUAL USE OF THE MAR0S IN LOCALCOMMERCE AN4 TRA4E.

Philippines4 #dherence to the Pa"i+ Con'!ntion !!$ti'!l7 o3ligat!+ t*! $ount"7 to *ono"

and !no"$! it+ %"o'i+ion+( #s re+#rds the protection o industri#l propert% o orei+n n#tion#lsin this countr%)

o Howeer, an7 %"ot!$tion a$$o"d!d *a+ to 3! -ad! +u38!$t to t*! li-itation+ o

P*ili%%in! la#+.o Hence, despite A"ti$l! 9 o t*! Pa"i+ Con'!ntion which sust#nti#ll% proides th#t!

(1) n#tion#ls o *e*er-countries sh#ll h#e in this countr% ri+hts speci#ll%proided % the Conention #s #re consistent with Philippine l#ws, #nd en?o% thepriile+es th#t Philippine l#ws now +r#nt or *#% here#ter +r#nt to its n#tion#l

(&) while no do*icile reFuire*ent in the countr% where protection is cl#i*edsh#ll e reFuired o persons entitled to the eneits o the 5nion or theen?o%*ent o #n% industri#l propert% ri+hts

o"!ign national+ -u+t +till o3+!"'! and $o-%l7 #it* t*! $ondition+

i-%o+!d 37 P*ili%%in! la# on it+ national+.

• R.A. No. :== (#s #*ended, speciic#ll% Sections && #nd &-A&), -andat!+ a$tual u+! o t*!

-a"+ andDo" !-3l!-+ in lo$al $o--!"$! and t"ad! 3!o"! t*!7 -a7 3! "!gi+t!"!d ando#n!"+*i% t*!"!o a$qui"!d

o t*! %!tition!"+ $annot, t*!"!o"!, di+%!n+! #it* t*! !l!-!nt o a$tual u+!.

o heir ein+ n#tion#ls o *e*er-countries o the P#ris 5nion does not #lter the le+#lsitu#tion.

8n *er#ld G#r*ent M+. Corpor#tion . Court o Appe#ls, the Court reiter#ted its rulin+s inSterlin+ Products 8ntern#tion#l, 8nc. . 2#ren#ri9en #%er A9tien+esellsch#t, #ushi #ish#8set#n . 8nter*edi#te Appell#te Court, #nd Philip Morris . Court o Appe#ls #nd 2ortune o#ccoCorpor#tion on t*! i-%o"tan$! o ACTUAL COMMERCIAL USE OF A TRA4EMAR0 in t*!P*ili%%in!+ not#it*+tanding t*! Pa"i+ Con'!ntion

o he proisions o the :=) Pa"i+ Con'!ntion I relied upon % pri#te respondent #ndS!$. 9:;A o t*! T"ad!-a" La# were suicientl% eDpounded upon #nd Fu#liied in therecent c#se o P*ili% Mo""i+, In$., !t. al. '+. Cou"t o A%%!al+ !

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2ollowin+ uniers#l #cFuiescence #nd co*it%, our #unicipal la on $rade#ars re+#rdin+ the require#en$s o" ac$ual use in $he Philippines #us$ subordina$e anin$erna$ional agree#en$ in#s*uch #s the #pp#rent cl#sh is ein+ decided % #*unicip#l triun#l.Jith#l, the #ct th#t intern#tion#l l#w h#s een *#de p#rt o the l#w o the l#nddo!+ NOT 37 an7 -!an+ i-%l7 t*! %"i-a$7 o int!"national la# o'!"

national la# in t*! -uni$i%al +%*!"!.Und!" t*! 4OCTRINE OF INCORPORATION a+ a%%li!d in -o+t $ount"i!+,

"ul!+ o Int!"national La# a"! gi'!n a +tanding EUAL , not +u%!"io", tonational l!gi+lati'! !na$t-!nt+.

A orei+n corpor#tion) *#% h#e the capaci$' $o sue "or in"ringe#en$ I utwhether the% h#e #n e*clusi%e righ$ o%er $heir s'#bol #s to ?usti% issu#nce othe controersi#l writ will depend on a$tual u+! o t*!i" t"ad!-a"+ in t*!P*ili%%in!+ in line with Sections & #nd &-A o the s#*e l#w.8t is thus incon+ruous or petitioners to cl#i* th#t when # orei+n corpor#tion not

li$!n+!d to do 3u+in!++ in t*! P*ili%%in!+ iles # co*pl#int or inrin+e*ent,the entit% need not e #ctu#ll% usin+ its tr#de*#r9 in co**erce in thePhilippines.

Su$* a o"!ign $o"%o"ation -a7 *a'! t*! %!"+onalit7 to il! a +uit o"

in"ing!-!nt 3ut it -a7 not n!$!++a"il7 3! !ntitl!d to %"ot!$tion du! toa3+!n$! o a$tual u+! o t*! !-3l!- in t*! lo$al -a"!t.

R!gi+t"ation o tr#de*#r9 c#nnot e dee*ed conclusie #s to the a$tual u+! o such tr#de*#r9in loc#l co**erce.

o re+istr#tion does not coner upon the re+istr#nt #n a3+olut! "ig*t to the re+istered *#r9.o *erel% constitutes pri*# #cie eidence th#t the re+istr#nt is the owner o the re+istered

*#r9.o E'id!n$! o non;u+ag! o t*! -a" "!3ut+ t*! %"!+u-%tion o t"ad!-a"

o#n!"+*i%

• Je stress th#t "!gi+t"ation in the Philippines o tr#de*#r9s does not ipso "ac$o cone% #na3+olut! "ig*t o" !6$lu+i'! o#n!"+*i% thereo.

o S*ang"i;La Int!"national Hot!l Manag!-!nt, Ltd. '. 4!'!lo%-!nt G"ou% o

Co-%ani!+, In$. T"ad!-a" is # cre#tion o use A$tual u+! is # pre-reFuisite to eDclusie ownership R!gi+t"ation is onl% #n #d*inistr#tie conir*#tion o the eDistence o the ri+ht o

ownership o the *#r9• does not perect such ri+ht3 a$tual u+! thereo is the perectin+

in+redient.

• P!tition!"+@ reli#nce on Con'!"+! Ru33!" Co"%o"ation i+ quit! -i+%la$!d

o dierent #ctu#l *ilieuo orei+n owner o # Philippine tr#de*#r9, #leit not licensed to do, #nd not so en+#+ed in,

usiness in the Philippines, *#% #ctu#ll% e#rn reput#tion or +oodwill or its +oods in thecountr%.

o ut unli9e in the inst#nt c#se, !'id!n$! o a$tual +al!+ o Con'!"+! "u33!" +*o!+,

+u$* a+ +al!+ in'oi$!+, "!$!i%t+ and t*! t!+ti-on7 o a l!giti-at! t"ad!", w#spresented in Conerse.

• his Court #lso inds the IP Cod! and t*! TRIPS Ag"!!-!nt to 3! ina%%li$a3l!

o the inrin+e*ent co*pl#int iled in Au+ust 1& #nd tried under the #e+is o R.A. No.166, #s #*ended.

o he 8P Code ($#nu#r% 1, 1) no proision on "!t"oa$ti'it7 R8PS A+ree*ent("ece*er 16, 1/)

"!gi+t"ation o a t"ad!-a" una$$o-%ani!d 37 a$tual u+! t*!"!o in t*! $ount"7 #ccords there+istr#nt onl% t*! +tanding to +u! o" in"ing!-!nt in P*ili%%in! $ou"t+. Entitl!-!nt to%"ot!$tion o +u$* t"ad!-a" in t*! $ount"7 is entirel% # dierent *#tter.

MIRPURI '+. CA G.R. No. ::), No'!-3!" :, :

Facts:

• 8n 10', sco#r iled #n #pplic#tion with the ure#u o P#tents or the re+istr#tion o thetr#de*#r9 @#ri<onB or use in horsiers #nd l#dies under+#r*ents (8PC No. 66).

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http://cofferette.blogspot.com/2009/01/mirpuri-vs-ca-gr-no-114508-november-19.html

http://cofferette.blogspot.com/2009/01/mirpuri-vs-ca-gr-no-114508-november-19.html



• Pri#te respondent reported #ri<on Corpor#tion, # corpor#tion or+#ni<ed #nd doin+ usinessunder the l#ws o New Kor9, 5SA, opposed the #pplic#tion.

8t w#s #lle+ed th#t its tr#de*#r9 is conusin+l% si*il#r with th#t o sco#r #nd th#t there+istr#tion o the s#id tr#de*#r9 will c#use d#*#+e to its usiness reput#tion #nd+oodwill. 8n 10/, the "irector o P#tents +#e due course to the #pplic#tion.

• sco#r l#ter #ssi+ned #ll his ri+hts #nd interest oer the tr#de*#r9 to petitioner.

• 8n 10, sco#r #iled to ile with the ure#u the #id#it o use o the tr#de*#r9 reFuired underthe Philippine r#de*#r9 ;#w.

"ue to this #ilure, the ure#u c#ncelled sco#r4s certiic#te o re+istr#tion. 8n 11,sco#r #nd petitioner sep#r#tel% iled this #pplic#tion or re+istr#tion o the s#*etr#de*#r9. (8PC &'/).

• Pri#te respondent opposed #+#in. his ti*e it #lle+ed (1) th#t the s#id tr#de*#r9 w#s re+istered with the 5S P#tent 7ice3

(&) th#t it is entitled to protection #s well-9nown *#r9 under Article 6 is o the P#risConention, 7 1 #nd the two Me*or#nd# o the Minister o r#de #nd 8ndustr% #nd() th#t its use on the s#*e cl#ss o +oods #*ounts to # iol#tion o the r#de*#r9 ;#w#nd Art. 1 o the RPC. Petitioner r#ised the deense o Res $udic#t#.

Issue:

• 7ne o the reFuisites o res ?udic#t# is identic#l c#uses o #ction. "o 8PC No. 66 #nd 8PC No.

&'/ inole the s#*e c#use o #ctionLeld:

• No. he issue o ownership o the tr#de*#r9 w#s not r#ised in 8PC 66. 8PC &'/ r#ised theissue o ownership, the irst re+istr#tion #nd use o the tr#de*#r9 in the 5S #nd other countries,#nd the intern#tion#l reco+nition o the tr#de*#r9 est#lished % eDtensie use #nd#dertise*ent o respondents products or oer /' %e#rs here #nd #ro#d. hese #re dierentro* the issues o conessin+ si*il#rit% #nd d#*#+e in 8PC 66. he issue o prior use *#% h#eeen r#ised in 8PC 66 ut this cl#i* w#s li*ited to prior use in the Philippines onl%. Prior use in8PC &'/ ste*s ro* the respondents cl#i*s ori+in#tor o the word #nd s%*ol @#ri<onB, #s theirst #nd re+istered user o the *#r9 #tt#ched to its products which h#e een sold #nd #dertisedwould #rise or # consider#le nu*er o %e#rs prior to petitioner4s irst #pplic#tion. 8ndeed, these#re sust#nti#l #lle+#tions th#t r#ised new issues #nd necess#ril% +#e respondents # new c#useo #ction.

Moreoer, the c#ncell#tion o petitioner4s certiic#te re+istr#tion or #ilure to ile the #id#it o use#rose #ter 8PC 66. his +#e respondent #nother c#use to oppose the second #pplic#tion.

8t is #lso to e noted th#t the oppositions in the irst #nd second c#ses #re #sed on dierentl#ws. C#uses o #ction which #re distinct #nd independent ro* e#ch other, #lthou+h out o thes#*e contr#ct, tr#ns#ction, or st#te o #cts, *#% e sued on sep#r#tel%, recoer% on one ein+no #r to suseFuent #ctions on others. he *ere #ct th#t the s#*e relie is sou+ht in thesuseFuent #ction will not render the ?ud+*ent in the prior #ction oper#tin+ #s res ?udic#t#, such#s where the #ctions #re #sed on dierent st#tutes.

Canon 0a3u+*ii 0ai+*a '. CA

FACTS

• NSR Ruer Corpor#tion iled #n #pplic#tion or re+istr#tion o the *#r9 CAN7N or s#nd#ls inthe ure#u o P#tents, r#de*#r9s, #nd echnolo+% r#nser (P).

• An opposition w#s iled % C#non #ushi9i #ish# (C), # orei+n corpor#tion dul% or+#ni<ed#nd eDistin+ under the l#ws o $#p#n. C #lle+ed th#t it will e d#*#+ed % the re+istr#tion o the tr#de*#r9 CAN7N in the n#*e o NSR Ruer Corpor#tion.

• he eidence presented % C consisted o its certiic#tes o re+istr#tion or the *#r9 CAN7Nin #rious countries coerin+ +oods elon+in+ to cl#ss & (p#ints, che*ic#l products, toner, #ndd%e stu).

• C #lso su*itted in eidence its Philippine r#de*#r9 Re+istr#tion No. , showin+ its

ownership oer the tr#de*#r9 CAN7N #lso under cl#ss &.• Howeer, the ure#u o P#tents, r#de*#r9s, #nd echnolo+% r#nser (P) dis*issed the

petition o C #nd +#e due course to NSR4s #pplic#tion or the re+istr#tion o the tr#de*#r9CAN7N.

• Accordin+ to P, the tr#de*#r9 @CAN7NB #s used % C or its p#ints, che*ic#l products,toner, #nd d%estu, c#n e used % NSR or its s#nd#ls ec#use the products o these two p#rties#re dissi*il#r.

• Hence, C iled this c#se #r+uin+ th#t!

5



#) it is entitled to eDclusie use o the *#r9 c#non ec#use it is its tr#de*#r9 #nd is used #lsoor ootwe#r.) to #llow NSR to re+ister c#non or ootwe#r is to preent C ro* usin+ c#non or #rious9inds o ootwe#r, when in #ct, C h#s e#rlier used s#id *#r9 or s#id +oods.c) it is #lso entitled to the ri+ht to eDclusiel% use c#non to preent conusion o usiness.

ISSUE

• J7N NSR R5R C7RP7RA87N MAK A;;7J" 7 5S H MAR @CAN7NB.

HEL4

• Kes.

• Jhen # tr#de*#r9 is used % # p#rt% or # product in which the other p#rt% does not de#l, the use

o the s#*e tr#de*#r9 on the l#tters product c#nnot e #lidl% o?ected to.

• he certiic#tes o re+istr#tion or the tr#de*#r9 CAN7N in other countries #nd in the Philippines

#s presented % C, cle#rl% showed th#t s#id certiic#tes o re+istr#tion coer +oods elon+in+to cl#ss & (p#ints, che*ic#l products, toner, d%estu). 7n this #sis, the P correctl% ruled

th#t since the certiic#te o re+istr#tion o petitioner or the tr#de*#r9 CAN7N coers cl#ss &

(p#ints, che*ic#l products, toner, d%estu), NSR c#n use the tr#de*#r9 CAN7N or its +oods

cl#ssiied #s cl#ss &: (s#nd#ls). Cle#rl%, there is # world o dierence etween the p#ints,

che*ic#l products, toner, #nd d%estu o C #nd the s#nd#ls o NSR.

• he certiic#te o re+istr#tion coners upon the tr#de*#r9 owner the eDclusie ri+ht to use its own

s%*ol onl' $o $hose goods speci"ied in $he cer$i"ica$e, su?ect to the conditions #nd li*it#tions

st#ted therein. hus, the eDclusie ri+ht o C in this c#se to use the tr#de*#r9 CAN7N is

li*ited onl% to the products coered % its certiic#te o re+istr#tion.

• As to the #r+u*ent o C th#t there could e conusion #s to the ori+in o the +oods, #s well #s

conusion o usiness, i NSR is #llowed to re+ister the *#r9 CAN7N, the SC ruled th#t in c#ses

o conusion o usiness or ori+in, the Fuestion th#t usu#ll% #rises is whether the respectie

+oods or serices o the senior user #nd the ?unior user #re so rel#ted #s to li9el% c#use

conusion o usiness or ori+in, #nd there% render the tr#de*#r9 or tr#den#*es conusin+l%

si*il#r.

• Goods #re rel#ted when the% elon+ to the s#*e cl#ss or h#e the s#*e descriptie properties3

when the% possess the s#*e ph%sic#l #ttriutes or essenti#l ch#r#cteristics with reerence to their

or*, co*position, teDture or Fu#lit%. he% *#% #lso e rel#ted ec#use the% sere the s#*e

purpose or #re sold in +rocer% stores.

• he p#ints, che*ic#l products, toner #nd d%estu o C th#t c#rr% the tr#de*#r9 CAN7N #re

unrel#ted to s#nd#ls, the product o NSR. he two cl#sses o products in this c#se low throu+h

dierent tr#de ch#nnels. he products o C #re sold throu+h speci#l che*ic#l stores or

distriutors while the products o NSR #re sold in +rocer% stores, s#ri-s#ri stores #nd dep#rt*ent

stores.

• hus, the eident disp#rit% o the products o the C #nd NSR renders unounded the

#pprehension o C th#t conusion o usiness or ori+in *i+ht occur i NSR is #llowed to use the

*#r9 CAN7N.

So$i!t! 4!+ P"oduit+ N!+tlJ, S.A. '+. Cou"t o A%%!al+

Fa$t+

6



7n $#nu#r% 1, 1/, pri#te respondent C2C Corpor#tion iled with the P #n #pplic#tion or the re+istr#tion o the tr#de*#r9 2;AV7R MASR or inst#nt coee

• Petitioner Societe "es Produits Nestle, S.A., # Swiss co*p#n% re+istered under Swiss l#ws #nd

do*iciled in Swit<erl#nd, iled #n uneriied Notice o 7pposition, cl#i*in+ th#t the tr#de*#r9 o

pri#te respondent4s product is conusin+l% si*il#r to its tr#de*#r9s or coee #nd coee

eDtr#cts, to wit! MASR R7AS #nd MASR ;N".

• A eriied Notice o 7pposition w#s iled % Nestle Philippines, 8nc., # Philippine corpor#tion #nd #

licensee o Societe "es Produits Nestle S.A., #+#inst C2C4s #pplic#tion or re+istr#tion o the

tr#de*#r9 2;AV7R MASR.

o Nestle cl#i*ed th#t the use, i #n%, % C2C o the tr#de*#r9 2;AV7R MASR #nd its

re+istr#tion would li9el% c#use conusion in the tr#de3 or deceie purch#sers #nd would

#lsel% su++est to the purch#sin+ pulic # connection in the usiness o Nestle, #s the

do#inan$ ord present in the three () tr#de*#r9s is MASR3 or th#t the +oods o

C2C *i+ht e *ist#9en #s h#in+ ori+in#ted ro* the l#tter.

• 8n #nswer to the two oppositions, C2C #r+ued th#t its tr#de*#r9, 2;AV7R MASR, is notconusin+l% si*il#r with the or*er4s tr#de*#r9s, MASR R7AS #nd MASR ;N",

#lle+in+ th#t, eDcept or the word MASR (which c#nnot e eDclusiel% #ppropri#ted % #n%

person or ein+ # descriptie or +eneric n#*e), the other words th#t #re used respectiel% with

s#id word in the three tr#de*#r9s #re er% dierent ro* e#ch other O in *e#nin+, spellin+,

pronunci#tion, #nd sound.

he P denied C2C4s #pplic#tion or re+istr#tion.

he Court o Appe#ls reersed the P4s decision #nd ordered the "irector o P#tents to#pproe C2C4s #pplic#tion. Hence this petition eore the SC.

I++u!

Jhether or not the CA erred in reersin+ the decision o the P den%in+ C2C4s petition or re+istr#tion. ES

Ruling

Colo"a3l! i-itation d!not!+ +u$* a $lo+! o" ing!niou+ i-itation a+ to 3! $al$ulat!d to

d!$!i'! o"dina"7 %!"+on+, o" +u$* a "!+!-3lan$! to t*! o"iginal a+ to d!$!i'! an o"dina"7%u"$*a+!" gi'ing +u$* att!ntion a+ a %u"$*a+!" u+uall7 gi'!+, a+ to $au+! *i- to %u"$*a+!t*! on! +u%%o+ing it to 3! t*! ot*!". 8n deter*inin+ i color#le i*it#tion eDists, ?urisprudenceh#s deeloped two 9inds o tests - the "o*in#nc% est #nd the Holistic est.

o he test o do*in#nc% ocuses on the si*il#rit% o the pre#lent e#tures o the co*petin+tr#de*#r9s which *i+ht c#use conusion or deception #nd thus constitute inrin+e*ent.

o 7n the other side o the spectru*, the holistic test *#nd#tes th#t the entiret% o the*#r9s in Fuestion *ust e considered in deter*inin+ conusin+ si*il#rit%.

T*! Cou"t o A%%!al+ !""!d in a%%l7ing t*! totalit7 "ul! #s deined in the c#ses o Bris$ol

M'ers %. +irec$or o" Pa$en$s3 Mead ohnson & Co. %. - -an +or" $d .3 #nd !#erican C'ana#id Co. %. +irec$or o" Pa$en$s. he tot#lit% rule st#tes th#t the test is not si*pl% to t#9e their words#nd co*p#re the spellin+ #nd pronunci#tion o s#id words. In d!t!"-ining #*!t*!" t#ot"ad!-a"+ a"! $onu+ingl7 +i-ila", t*! t#o -a"+ in t*!i" !nti"!t7 a+ t*!7 a%%!a" in t*!"!+%!$ti'! la3!l+ -u+t 3! $on+id!"!d in "!lation to t*! good+ to #*i$* t*!7 a"! atta$*!dt*! di+$!"ning !7! o t*! o3+!"'!" -u+t o$u+ not onl7 on t*! %"!do-inant #o"d+ 3ut al+oon t*! ot*!" !atu"!+ a%%!a"ing on 3ot* la3!l+.

In t*! $a+! at 3a", ot*!" t*an t*! a$t t*at 3ot* N!+tl!@+ and CFC@+ %"odu$t+ a"!

in!6%!n+i'! and $o--on *ou+!*old it!-+, t*! +i-ila"it7 !nd+ t*!"!. Jh#t is ein+Fuestioned here is the use % C2C o the tr#de*#r9 MASR. 8n iew o the diicult% o #ppl%in+

?urisprudenti#l precedents to tr#de*#r9 c#ses due to the peculi#rit% o e#ch c#se, ?udici#l or#should not re#dil% #ppl% # cert#in test or st#nd#rd ?ust ec#use o see*in+ si*il#rities. As thisCourt h#s pointed #oe, there could e *ore tellin+ dierences th#n si*il#rities #s to *#9e #

?urisprudenti#l precedent in#pplic#le.• he Court o Appe#ls held th#t the test to e #pplied should e the tot#lit% or holistic test

re#sonin+, since wh#t is o p#r#*ount consider#tion is the ordin#r% purch#ser who is, in +ener#l,

undiscernin+l% r#sh in u%in+ the *ore co**on #nd less eDpensie household products li9e

7



coee, #nd is thereore less inclined to closel% eD#*ine speciic det#ils o si*il#rities #nd

dissi*il#rities etween co*petin+ products.

• his Court c#nnot #+ree with the #oe re#sonin+. 8 the ordin#r% purch#ser is undiscernin+l%

r#sh in u%in+ such co**on #nd ineDpensie household products #s inst#nt coee, #nd would

thereore e less inclined to closel% eD#*ine speciic det#ils o si*il#rities #nd dissi*il#rities

etween the two co*petin+ products, then it would e less li9el% or the ordin#r% purch#ser to

notice th#t C2C4s tr#de*#r9 2;AV7R MASR c#rries the colors or#n+e #nd *och# while th#t o

Nestle4s uses red #nd rown. T*! a%%li$ation o t*! totalit7 o" *oli+ti$ t!+t i+ i-%"o%!" since

the ordin#r% purch#ser would not e inclined to notice the speciic e#tures, si*il#rities or

dissi*il#rities, considerin+ th#t the product is #n ineDpensie #nd co**on household ite*.

Moreoer, the tot#lit% or holistic test is contr#r% to the ele*ent#r% postul#te o the l#w ontr#de*#r9s #nd un#ir co*petition th#t conusin+ si*il#rit% is to e deter*ined on the #sis o isu#l, #ur#l, connot#tie co*p#risons #nd oer#ll i*pressions en+endered % the *#r9s incontroers% #s the% #re encountered in the re#lities o the *#r9etpl#ce. he tot#lit% or holistic testonl% relies on isu#l co*p#rison etween two tr#de*#r9s where#s the do*in#nc% test relies notonl% on the isu#l ut #lso on the #ur#l #nd connot#tie co*p#risons #nd oer#ll i*pressionsetween the two tr#de*#r9s.

In addition, t*! #o"d KMASTERK i+ n!it*!" a g!n!"i$ no" a d!+$"i%ti'! t!"-. A+ +u$*, +aid

t!"- $annot 3! in'alidat!d a+ a t"ad!-a" and, t*!"!o"!, -a7 3! l!gall7 %"ot!$t!d. o G!n!"i$ ter*s #re those which constitute the co**on descriptie n#*e o #n #rticle or

sust#nce, or co*prise the +enus o which the p#rticul#r product is # species, or #reco**onl% used #s the n#*e or description o # 9ind o +oods, or i*pl% reerence toeer% *e*er o # +enus #nd the eDclusion o indiidu#tin+ ch#r#cters, or reer to the#sic n#ture o the w#res or serices proided r#ther th#n to the *ore idios%ncr#ticch#r#cteristics o # p#rticul#r product, #nd #re not le+#ll% protect#le.

o 7n the other h#nd, # ter* is d!+$"i%ti'! #nd thereore in#lid #s # tr#de*#r9 i, #sunderstood in its nor*#l #nd n#tur#l sense, it orthwith cone%s the ch#r#cteristics,unctions, Fu#lities or in+redients o # product to one who h#s neer seen it #nd does not9now wh#t it is, or i it orthwith cone%s #n i**edi#te ide# o the in+redients, Fu#litiesor ch#r#cteristics o the +oods, or i it cle#rl% denotes wh#t +oods or serices #reproided in such # w#% th#t the consu*er does not h#e to eDercise powers o perception or i*#+in#tion.

Rat*!", t*! t!"- KMASTERK i+ a +ugg!+ti'! t!"- 3"oug*t a3out 37 t*! ad'!"ti+ing +$*!-!

o N!+tl!. Su++estie ter*s #re those which, in the phr#seolo+% o one court, reFuirei*#+in#tion, thou+ht #nd perception to re#ch # conclusion #s to the n#ture o the +oods. Suchter*s, which sutl% connote so*ethin+ #out the product, #re eli+ile or protection in the#sence o second#r% *e#nin+. Jhile su++estie *#r9s #re c#p#le o sheddin+ so*e li+htupon cert#in ch#r#cteristics o the +oods or serices in dispute, the% neertheless inole #nele*ent o incon+ruit%, i+ur#tieness, or i*#+in#tie eort on the p#rt o the oserer.

he ter* MASR, thereore, h#s #cFuired # cert#in connot#tion to *e#n the coee productsMASR R7AS #nd MASR ;N" produced % Nestle. As such, the use % C2C o theter* MASR in the tr#de*#r9 or its coee product 2;AV7R MASR is li9el% to c#useconusion or *ist#9e or een to deceie the ordin#r% purch#sers.

P*il. R!ining Co. '. Ng Sa- and 4i"!$to" o Pat!nt+ G.R. No. L;9===, ul7 <, :9

Fa$t+ o t*! Ca+!

• he petitioner Philippine Reinin+ Co. irst used /Ca#ia/ #s tr#de*#r9 or its products in 1&&. 8n

1/, it c#used the re+istr#tion o the s#id tr#de*#r9 or its l#rd, utter, coo9in+ oil, deter+ents,

polishin+ *#teri#ls #nd so#p products. 8n 16', N+ S#* iled #n #pplic#tion or /Ca#ia/

or its

h#* product (Cl#ss /0), #lle+in+ its irst use in 1:. he petitioner opposed the s#id #pplic#tion

ut the P#tent 7ice #llowed the re+istr#tion o N+ S#*.

I++u!

8s the product o N+ S#* (H#*) #nd those o the petitioner so rel#ted th#t the use o the

tr#de*#r9 C#*i# on s#id +oods would result to conusion #s to their ori+inL

HEL4

8



• N7. he usinesses o the p#rties #re non-co*petitie #nd the products #re so unrel#ted th#t the

use o the s#*e tr#de*#r9 will not +ie rise to conusion nor c#use d#*#+e to the petitioner. he

ri+ht to # tr#de*#r9 is # li*ited one, hence, others *#% use the s#*e *#r9 on unrel#ted +oods i

no conusion would #rise.

• A tr#de*#r9 is desi+ned to identi% the user, hence, it should e so distinctie #nd suicientl%

ori+in#l so #s to en#le those who see it to reco+ni<e inst#ntl% its source or ori+in. A tr#de*#r9

*ust e #ir*#tie #nd deinite, si+niic#nt #nd distinctie #nd c#p#le o indic#tin+ ori+in.

• /Ca#ia/ #s # tr#de*#r9 is #r ro* ein+ distinctie, 8t in itsel does not identi% the petitioner #s

the *#nu#cturer o producer o the +oods upon which s#id *#r9 is used. 8 # *#r9 is so

co**onpl#ce, it is #pp#rent th#t it c#nt identi% # p#rticul#r usiness #nd he who #dopted it irst

c#nnot e in?ured % #n% suseFuent #ppropri#tion or i*it#tion % others #nd the pulic will not

e deceied.

• Mere cl#ssiic#tion o the +oods c#nnot sere #s the decisie #ctor in the resolution o whether or

not the +oods # rel#ted. *ph#sis should e on the si*il#rit% o products inoled #nd not on

#ritr#r% cl#ssiic#tion o +ener#l description o their properties or ch#r#cteristics.

ARCE SONS AN4 COMPAN s. SELECTA BISCUIT COMPAN, INC., ET AL.,

Fa$t+

• R#*on Arce, predecessor-in-interest o herein petitioner, st#rted # *il9 usiness in 1 usin+the n#*e @S;CAB #s tr#de-n#*e #s well #s tr#de-*#r9. He sold his *il9 products in ottlescoered with c#ps on which the words @S;CA 2RSH M8;B were inscried. 2or the sp#n o *ore th#n &' %e#rs, his usiness eDp#nded #nd sold, in #ddition to his *il9 product, ice cre#*,s#ndwiches #nd other ood products. His products were p#c9#+ed in # speci#l cont#iners withthe word BS;CAB written in the p#c9#+in+. Seer#l new products were eentu#ll% #dded tohis line o products such #s iscuits, #9er% ite*s, #nd #ssorted c#9es #nd p#stries. he word

@S;CAB w#s een written on the si+no#rds o his usiness est#lish*ents #nd upon theehicles th#t were used or the delier% o his products. hen his usiness w#s #cFuired %petitioner Arce Sons #nd Co. which eentu#ll% put # irst cl#ss rest#ur#nt #side ro* the*#nu#cture o the #ore*entioned ood products.

• Herein respondent on the other h#nd, w#s or+#ni<ed #nd re+istered #s corpor#tion under then#*e #nd st%le o Select# iscuits Co., 8nc. he n#*e Select# w#s chosen % the Chineseor+#ni<ers o the corpor#tion #s # tr#nsl#tion o # Chinese word @Chin+ Su#n.B 8ts usinessst#rted #s # iscuit #ctor% #nd its products such #s iscuits #nd cr#c9ers were speci#ll% wr#ppedin celloph#ne pouches #nd pl#ce inside # tin c#n. Such products o the respondent were soldthrou+hout the Philippines. he respondent iled # petition with the Philippine P#tent 7ice or the re+istr#tion o the word @S;CAB #s tr#de*#r9 to e use in its #9er% products. hepetition w#s reerred to #n eD#*iner or e#lu#tion who ound out th#t the tr#de*#r9 sou+ht to e

re+istered rese*les the word @S;CAB used % the petitioner so th#t its use % therespondent will c#use conusion #s to the ori+in o their respectie +oods. So the eD#*iner reco**ended or the dis#ppro#l o the #pplic#tion. Howeer, P#tent 7ice onl% ordered thepulic#tion o the #pplic#tion.

• 8n due ti*e, petitioner iled #n opposition to the re+istr#tion on the +round th#t the *#r9@S;CAB h#s een continuousl% used % it ro* the ti*e o its or+#ni<#tion #nd een prior thereto % R#*on Arce, thus the s#id *#r9 h#s #lre#d% eco*e identiied with its n#*e #ndusiness. Petitioner #lso contend th#t the use o S;CA % the respondents #s tr#de*#r9constitutes #s #n un#ir co*petition with its products thus resultin+ in conusion in tr#de #nd th#tthe product o the respondent *i+ht e *ist#9en % the pulic #s its products.

• he "irector o P#tents rendered # decision dis*issin+ petitioner4s opposition st#tin+ th#t the

re+istr#tion o the tr#de-*#r9 S;CA in #our o the respondent will not c#use conusion or *ist#9e nor will deceie the purch#sers #s to c#use d#*#+e to petitioner. Hence, this presentpetition or reiew.

I++u!

• Jhether or not the use o the tr#de-*#r9 @S;CAB % the respondent will result conusion tothe pre?udice o Arce Sons #nd Co.

H!ld

9



• Kes. r#de*#r9 is # distinctie *#r9 o #uthenticit% throu+h which the *erch#ndise o # p#rticul#r producer or *#nu#cturer *#% e distin+uished ro* th#t o others, #nd its sole unction is todesi+n#te distinctiel% the ori+in o the products to which it is #tt#ched. Veril%, the word@S;CAB h#s een chosen % petitioner #nd h#s een inscried on #ll its products to sere notonl% #s # si+n or s%*ol th#t *#% indic#te th#t the% #re *#nu#ctured #nd sold % it ut #s #*#r9 o #uthenticit% th#t *#% distin+uish the* ro* the products sold #nd *#nu#ctured % other

*erch#nts or usiness*en. he word S;CA, it is true, *#% e #n ordin#r% or co**on wordin the sense th#t *#% e used or e*plo%ed % #n% one in pro*otin+ his usiness or enterprise,ut once #dopted or coined in connection with ones usiness #s #n e*le*, si+n or deice toch#r#cteri<e its products, or #s # #d+e o #uthenticit%, it *#% #cFuire # second#r% *e#nin+ #s toe eDclusiel% #ssoci#ted with its products #nd usiness. 8n this sense, its used % #nother *#%le#d to conusion in tr#de #nd c#use d#*#+e to its usiness. And this is the situ#tion o petitioner when it used the word S;CA #s # tr#de-*#r9. 8n this sense, the l#w +ies its protection #nd+u#r#ntees its used to the eDclusion o #ll others. hus, the "irector o P#tent co**itted #n error in dis*issin+ the opposition o the petitioner #nd in holdin+ th#t the re+istr#tion o the tr#de*#r9@S;CAB in #our o respondent will not c#use d#*#+e to petitioner.

• "ecision o the "irector o P#tent oice is reersed.

CONVERSE RUBBER CORPORATION, s.UNIVERSAL RUBBER PRO4UCTS, INC. and TIBURCIO

S. EVALLE, 4IRECTOR OF PATENTS,

FACTS

• Respondent 5niers#l Ruer Products, 8nc.=RespondentEApplic#nt> iled #n #pplic#tion with the

Philippine P#tent oice or re+istr#tion o the tr#de*#r9 5N8VRSA; C7NVRS AN""V8C used on ruer shoes #nd ruer slippers.

• Conerse Ruer Corpor#tion =PetitionerE7pposer> iled its opposition to the #pplic#tion or

re+istr#tion on +rounds th#t the tr#de*#r9 sou+ht to e re+istered is conusin+l% si*il#r to the

word C7NVRS which is p#rt o petitioners corpor#te n#*e C7NVRS R5R

C7RP7RA87N to #n eDtent th#t s#id products *#% e *ist#9en % the unw#r% pulic to e

*#nu#ctured % the petitioner3 the re+istr#tion o respondents tr#de*#r9 will c#use +re#t #nd

irrep#r#le in?ur% to the usiness reput#tion #nd +oodwill o petitioner in the Philippines.

• ri#l ensued. Petitioner #t the tri#l, presented # pri#te *erch#nt =Mrs. P#cFuin+> who testiied

th#t she h#d een sellin+ C7NVRS ruer shoes in the loc#l *#r9et since 1:6 #nd th#t s#leso petitioners ruer shoes in her stores #er#+ed twele to twent% p#irs # *onth purch#sed

*ostl% % #s9et#ll pl#%ers o loc#l pri#te educ#tion#l institutions. h#t she issued inoices or

the ruer shoes were descried #s Conerse Chuc9 #%lor, Conerse All St#r, All St#r

Conerse Chuc9 #%lor, or Conerse Shoes Chuc9 #%lor. She #lso #ir*ed th#t she h#d no

usiness connection with the petitioner.

• he "irector o P#tents dis*issed the opposition o the petitioner #nd +#e due course to

respondents #pplic#tion. 8t concluded th#t the opposer #iled to present proo th#t the sin+le word

C7NVRS in its corpor#te n#*e h#s eco*e so 8dentiied with the corpor#tion th#t wheneer

used, it desi+n#tes to the *ind o the pulic th#t p#rticul#r corpor#tion. he proos herein #re

s#les *#de % # sin+le witness who h#d neer de#lt with the petitioner . . . the entr% o 7pposers=petitioners> +oods in the Philippines were not onl% eected in # er% insi+niic#nt Fu#ntit% ut

without the opposer =petitioner> h#in+ # direct or indirect h#nd in the tr#ns#ction so #s to e

*#de the #sis or tr#de*#r9 pre- eDe*ption. 8t urther concluded th#t the petitioner is not

licensed to do usiness in the countr% #nd is #ctu#ll% not doin+ usiness on its own in the

Philippines, it h#s no n#*e to protect in the oru* #nd thus, it is utile or it to est#lish th#t

C7NVRS #s p#rt o its corpor#te n#*e identiies its ruer shoes. h#t # orei+n corpor#tion

10



h#s # ri+ht to *#int#in #n #ction in the oru* een i it is not licensed to do usiness #nd is not

#ctu#ll% doin+ usiness on its own therein h#s een enunci#ted *#n% ti*es % this Court.

• Petitioner4s *otion or reconsider#tion h#in+ een denied % the respondent "irector o P#tents,

petitioner instituted the inst#nt petition or reiew.

ISSUE

• Jhether or not the respondents p#rti#l #ppropri#tion o petitioners corpor#te n#*e is o such

ch#r#cter th#t it is c#lcul#ted to deceie or conuse the pulic to the in?ur% o the petitioner to

which the n#*e elon+s.

RULING

• JHR27R, the decision o the "irector o P#tents is here% set #side #nd # new one entered

den%in+ Respondent 5niers#l Ruer Products, 8nc.s #pplic#tion or re+istr#tion o the

tr#de*#r9 5N8VRSA; C7NVRS AN" "V8C on its ruer shoes #nd slippers.

HEL4

• A corpor#tion is entitled to the c#ncell#tion o # *#r9 th#t is conusin+l% si*il#r to its corpor#te

n#*e. Appropri#tion % #nother o the do*in#nt p#rt o # corpor#te n#*e is #n inrin+e*ent.

• Jhen there is no re#son#le eDpl#n#tion or the deend#nts choice o such # *#r9 thou+h the

ield or his selection w#s so ro#d, the inerence is ineit#le th#t it w#s chosen delier#tel% to

deceie.

• he dete*in#tie #ctor in #scert#inin+ whether or not *#r9s #re conusin+l% si*il#r, or the

purposes o the l#w is th#t the si*il#rit% etween the two l#els is such th#t there is # possiilit%

or li9elihood o the purch#ser o the older r#nd *ist#9in+ the new r#nd or it.

•

en i not licensed to do usiness in the countr% or not doin+ usiness here, it does not *e#n

th#t its +oods #re not ein+ sold here or th#t it h#s not e#rned # reput#tion or +oodwill #s re+#rds

its products. Jhile Conerse Ruer Corpor#tion is not licensed to do usiness in the countr%

#nd is not #ctu#ll% doin+ usiness here, it does not *e#n th#t its +oods #re not ein+ sold here or

th#t it h#s not e#rned # reput#tion or +oodwill #s re+#rds its products.

• CO;PURCHASER MEANING ! Jhen the l#w spe#9s co-purch#ser, the reerence is to ordin#r%

#er#+e purch#ser. "oes not necess#ril% pert#ins to deception o eDperts, de#lers, or other

persons speci#ll% #*ili#r with the tr#de*#r9 or +oods inole.

•

CONVERSE i+ a do-inant #o"d t*at id!ntii!+ CONVERSE RUBBER CORPRORATION.

he Court #sis in such decision th#t respondent h#s no ri+ht to #ppropri#te the wordC7NVRS or use on its products which #re si*il#r to those ein+ produced % petitioner!

1. T *! #o"d KCONVERSEK *a+ g"o#n to 3! Id!ntii!d #it* %!tition!"+ %"odu$t+ and a$qui"!d

+!$ond -!aning #it*in t*! $ont!6t o t"ad!-a" and t"ad!na-! la#+. he Court used the

testi*on% o petitioners witness, who is # le+iti*#te tr#der #s well #s the inoices eidencin+

s#les o petitioners products in the Philippines, +ie credence to petitioners cl#i* th#t it h#s

e#rned # usiness reput#tion #nd +oodwill in this countr%.

11



&. T*! -o+t $on'in$ing %"oo o u+! o a -a" in $o--!"$! i+ t!+ti-on7 o +u$* #itn!++!+

#s custo*ers, or the orders o u%ers durin+ # cert#in period. Petitioners witness, h#in+

#ir*ed her l#c9 o usiness connections with petitioner, h#s testiied #s such custo*er,

supportin+ stron+l% petitioners *oe or tr#de*#r9 pre-e*ption.

. Sal!+ In'oi$!+ 3!+t %"oo o a$tual +al!+ and a$tual u+! o %!tition!"@+ t"ad!-a".

2urther*ore, s#id s#les inoices proide the est proo th#t there were #ctu#l s#les o petitioners

products in the countr% #nd th#t there w#s #ctu#l use or # protr#cted period o petitioners

tr#de*#r9 or p#rt thereo throu+h these s#les.

/.

A$tual +al! o good+ in t*! lo$al -a"!t !+ta3li+*!+ t"ad!-a" u+! #*i$* +!"'!+ a+ t*!

3a+i+ o" an7 a$tion ai-!d at t"ad!-a" %"!; !6!-%tion . An% s#le *#de % # le+iti*#te

tr#der ro* his store is # co**erci#l #ct est#lishin+ tr#de*#r9 ri+hts since such s#les #re *#de

in due course o usiness to the +ener#l pulic, not onl% to li*ited indiidu#ls. 8t is # *#tter o

pulic 9nowled+e th#t #ll r#nds o +oods ilter into the *#r9et, indiscri*in#tel% sold % ?oers

de#lers #nd *erch#nts not necess#ril% with the 9nowled+e or consent o the *#nu#cturer.

:. T*! u+! o t*! #o"d CONVERSE #ould $onu+! t*! %u"$*a+!"@+ %!"$!%tion on t*!%"odu$t@+ o"igin.he ris9 o d#*#+e is not li*ited to # possile conusion o +oods ut #lso

includes conusion o reput#tion i the pulic could re#son#l% #ssu*e th#t the +oods o the

p#rties ori+in#ted ro* the s#*e source. en i the *#r9s #re dissi*il#r ro* those o the

petitioner, there would e still conusion not on the purch#sers perception o the +oods ut on the

ori+ins thereo. % #ppropri#tin+ the word C7NVRS, respondents products #re li9el% to e

*ist#9en #s h#in+ een produced % petitioner. he tr#de*#r9 o respondent 5N8VRSA;

C7NVRS #nd "V8C is i*printed in # circul#r *#nner on the side o its ruer shoes. 8n the

s#*e *#nner, the tr#de*#r9 o petitioner which re#ds C7NVRS CH5C AK;7R is

i*printed on # circul#r #se #tt#ched to the side o its ruer shoes. en i not #n the det#ils ?ust

*entioned were identic#l, with the +ener#l #ppe#r#nce #lone o the two products, #n% ordin#r%, or

een perh#ps een =sic> # not too perceptie #nd discri*in#tin+ custo*er could e deceied ...

6. T*! un!6%lain!d u+! o t*! do-inant #o"d o %!tition!"@+ $o"%o"at! na-! l!nd+ it+!l o%!n

to t*! +u+%i$ion o "audul!nt -oti'! to t"ad! u%on %!tition!"+ "!%utation. he Court once

ruled th#t here w#s #n A"M8SS87N o #pplic#nt 5N8VRSA; C7NVRS AN" "V8C o

petitioners eDistence since 1/6

(ound in the S8P5;A87N 72 2ACS) #s # dul% or+#ni<ed

orei+n corpor#tion en+#+ed in the *#nu#cture o ruer shoe in its stipul#tion o #ct etr#%s its

9nowled+e o the reput#tion #nd usiness o petitioner een eore it #pplied or re+istr#tion o

the tr#de*#r9 in Fuestion

• PETITIONER@S STAN4ING TO SUE Article o the Conention o the 5nion o P#ris or theProtection o 8ndustri#l Propert% to which the Philippines ec#*e # p#rt% on Septe*er &0, 16:

proides th#t # tr#de n#*e =corpor#te n#*e> sh#ll e protected in #ll the countries o the 5nion

without the oli+#tion o ilin+ or re+istr#tion, whether or not it or*s p#rt o the tr#de*#r9. his is

to #ccord # n#tion#l o # *e*er n#tion eDtensie protection #+#inst inrin+e*ent #nd other

t%pes o un#ir co*petition

• he *#nd#te o the Conention w#s #dopted under in Sec. 0 o RA No. 166 (r#de*#r9 ;#w).

Sec. 0. Ri+hts o 2orei+n Re+istr#nts-Persons who #re n#tion#ls o, do*iciled or h#e # on#

ide or eectie usiness or co**erci#l est#lish*ent in #n% orei+n countr%, which is # p#rt% to

#n intern#tion#l conention or tre#t% rel#tin+ to *#r9s or tr#den#*es on the repression o un#ir

co*petition to which the Philippines *#% e # p#rt%, sh#ll e entitled to the eneits #nd su?ectto the proisions o this Act . . . ...

• Tradena#es o" persons described in $he "irs$ paragraph o" $his sec$ion shall be pro$ec$ed i$hou$

$he obliga$ion o" "iling or regis$ra$ion he$her or no$ $he' "or# par$s o" #ars.

12



PUMA SPORTSCHUHFABRI0EN RU4OLF 4ASSLER, 0.G., s THE INTERME4IATE APPELLATE

COURT and MIL;ORO MANUFACTURING CORPORATION,

Fa$t+

• Petitioner Pu*# Sportschuh#ri9en, # orei+n corpor#tion dul% or+#ni<ed under the eDistin+ l#wso Ger*#n%, is # *#nu#cturer #nd producer o Pu*# products. 8t iled # co*pl#int or inrin+e*ent o p#tent or tr#de*#r9 #+#inst Mil-7ro M#nu#cturin+ Corpor#tion, which is #re+istr#nt o the tr#de*#r9 @Pu*# #nd "eice,B with # pr#%er or issu#nce o writ o preli*in#r%in?unction. he tri#l court +r#nted petitioner4s pr#%er #nd orderin+ Mil-7ro to restr#in ro* usin+the tr#de*#r9 P5MA #nd to withdr#w ro* the *#r9et #ll products e#rin+ the s#*e tr#de*#r9.7n #ppe#l, the CA reersed the order o the tri#l court on the +round th#t petitioner h#s no le+#lc#p#cit% to sue. Hence, this present petition or reiew. oth p#rties in this c#se *#int#in th#tthe% #re the ri+htul owners o the tr#de*#r9 P5MA or soc9s #nd elts such th#t oth p#rtiessee9 the c#ncell#tion o the tr#de*#r9 o the other.

I++u!

• Jhether or not petitioner h#s le+#l c#p#cit% to sue in this ?urisdiction.

H!ld

• he Court holds th#t the petitioner h#d the le+#l c#p#cit% to ile #n #ction in this ?urisdiction. Ase#rl% #s 1&0, the Court w#s, #nd it still is, o the iew th#t orei+n corpor#tion not doin+ usinessin the Philippines needs no license to sue eore Philippine courts or inrin+e*ent o tr#de*#r9#nd un#ir co*petition. A orei+n corpor#tion which h#s neer done #n% usiness in thePhilippines #nd which is unlicensed #nd unre+istered to do usiness here, ut is widel% #nd#or#l% 9nown in the Philippines throu+h the use therein o its products e#rin+ its corpor#te#nd tr#de n#*e, h#s # le+#l ri+ht to *#int#in #n #ction in the Philippines to restr#in the residents#nd inh#it#nts thereo ro* or+#ni<in+ # corpor#tion therein e#rin+ the s#*e n#*e #s theorei+n corpor#tion, when it #ppe#rs th#t the% h#e person#l 9nowled+e o the eDistence o such# orei+n corpor#tion, #nd it is #pp#rent th#t the purpose o the proposed do*estic corpor#tion is

to de#l #nd tr#de in the s#*e +oods #s those o the orei+n corpor#tion.

Ma"'!6 '+. P!t"a Ha#%ia

FACTS

• Petr# H#wpi# Co., # p#rtnership dul% or+#ni<ed under the l#ws o the Philippines #nd doin+usiness #t :/ M. de S#ntos (otic# "iisori#), M#nil# (herein#ter reerred to #s the #pplic#nt),on 7ctoer 1/, 1: iled # petition or the re+istr#tion o the tr#de*#r9 ;87NPAS used on*edic#ted pl#ster, with the Philippine P#tent 7ice, #ssertin+ its continuous use in thePhilippines since $une , 1:.

• he M#reD Co**erci#l Co., 8nc., # corpor#tion #lso dul% or+#ni<ed under the l#ws o the

Philippines (herein#ter reerred to #s the oppositor), on $ul% &/, 1: iled #n opposition thereto,#lle+in+ th#t the re+istr#tion o such tr#de*#r9 would iol#te its ri+ht to #nd interest in thetr#de*#r9 SA;7NPAS used on #nother *edic#ted pl#ster, which is re+istered in its n#*e under Certiic#te o Re+istr#tion :/6, issued % the "irector o P#tents on Septe*er &, 1:6, #ndth#t oth tr#de*#r9s when used on *edic#ted pl#ster would *isle#d the pulic #s the% #reconusin+l% si*il#r.

• Ater due he#rin+, the "irector o P#tents in his decision o Au+ust 1, 161 dis*issed theopposition #nd +#e due course to the petition, st#tin+ in p#rt th#t conusion, *ist#9e, ordeception #*on+ the purch#sers will not li9el% #nd re#son#l% occur when oth tr#de*#r9s #re#pplied to *edic#ted pl#ster.

• he oppositor *oed to h#e the decision reconsidered. his *otion w#s denied in # resolutiono Noe*er &0, 161. he oppositor then interposed the present #ppe#l.

ISSUE• 8s the #pplic#nt the owner o the tr#de*#r9 ;87NPASL

• (&) 8s the tr#de*#r9 ;87NPAS conusin+l% si*il#r to the tr#de *#r9 SA;7NPASL

HEL4

• "irector o P#tents ound, on the stren+th o eDhiits : #nd 6 or the #pplic#nt, th#t the l#tter h#ss#tis#ctoril% shown its ownership o the tr#de*#r9 sou+ht to e re+istered. Dhiit : is # letterd#ted $une &', 1:, sent % 7SAA 78 A8SHA, ;". to the #pplic#nt which tends to

13



show th#t the or*er, or # 1 consider#tion, h#s #ssi+ned, ceded, #nd cone%ed #ll its ri+hts,interests #nd +oodwill in the tr#den#*e ;87NPAS Medic#ted Pl#ster . . . in #or o the l#tter.

• A c#reul scrutin% o eDh. : will ree#l, howeer, th#t the sender o the letter, 7SAA 78A8SHA, ;"., #nd which #ppe#rs to e the seller, is *erel% # represent#tie o the*#nu#cturer AS5NAR7 PHARMAC58CA; 8N"5SRK C7. here is no proo th#t #s suchrepresent#tie, the or*er h#s een #uthori<ed % the l#tter to sell the tr#de*#r9 in Fuestion.

Moreoer, eDh. : on its #ce #ppe#rs to h#e een si+ned onl% % so*eone whose position in theco*p#n%s Sundries "ept. is not descried3 the si+n#ture is not le+ile.• 8t is een contr#dicted % eDh. 6. Jhile eDh. : shows th#t 7SAA 78 A8SHA,;". is #

represent#tie o AS5NAR7 PHARMAC58CA; 8N"5SRK C7.3 eDh.6 #sserts th#t theor*er is not # represent#tie o the l#tter, ut th#t it is the owner o the tr#de*#r9 ;87NPAS(p#r. &, eDh. 6). At #ll eents, neither #er*ent c#n e #ccorded the wei+ht o #n #ssi+n*ent oownership o the tr#de*#r9 in Fuestion under the r#deM#r9 ;#w. Dh. : is not #c9nowled+ed.Dh. 6 does not e#r the #c9nowled+*ent conte*pl#ted % the #ores#id l#w p#rticul#rl% % thel#st p#r#+r#ph o section 0 #nd p#r#+r#ph & o section 1 o R. A. 166, #s #*ended.

• he #ssi+n*ent *ust e in writin+, #c9nowled+ed eore # not#r% pulic or other oicer#uthori<ed to #d*inister o#ths or peror* other not#ri#l #cts #nd certiied under the h#nd #ndoici#l se#l o the not#r% or other oicer. (Sec. 1, p#r. &)8n this c#se, #lthou+h # sheet o p#peris #tt#ched to eDh. 6, on which is t%pewritten # certiic#tion th#t the si+n#tures o the presidents o

the two n#*ed co*p#nies (reerrin+ to the si+n#tures in eDh. 6) h#e een dul% written %the*seles, this sheet is un*#r9ed, unp#+ed, unsi+ned, und#ted #nd unse#led. Je h#ethu*ed the record in Fuest o #n% deinitie eidence th#t it is # correct tr#nsl#tion o the$#p#nese ch#r#cters ound on #nother un*#r9ed #nd unp#+ed sheet, #nd h#e ound none.

• 8t is our considered iew th#t the tr#de *#r9 SA;7NPAS #nd ;87NPAS #re conusin+l% si*il#r in sound. oth these words h#e the s#*e suiD, PAS, which is used to denote # pl#ster th#t#dheres to the od% with cur#tie power

• Jhen the two words #re pronounced, the sound eects #re conusin+l% si*il#r. And where +oods#re #dertised oer the r#dio, si*il#rit% in sound is o speci#l si+niic#nce.

• he i*port#nce o this rule is e*ph#si<ed % the incre#se o r#dio #dertisin+ in which we #redepried o the help o our e%es #nd *ust depend entirel% on the e#r.

• 8n the c#se #t #r, SA;7NPAS #nd ;87NPAS, when spo9en, sound er% *uch #li9e.

• Si*il#rit% o sound is suicient +round or this Court to rule th#t the two *#r9s #re conusin+l%

si*il#r when #pplied to *erch#ndise o the s#*e descriptie properties

E-!"ald Ga"-!nt '. CA

Fa$t+

• H" ;ee Co., # orei+n corpor#tion, see9s the c#ncell#tion o # p#tent in #or o *er#ld

G#r*ent M#nu#cturin+ (do*iciled in the Phil) or the tr#de*#r9 @St%listic Mr. ;ee,B which

#ccordin+ to H" ;ee Co. closel% rese*led its own tr#de*#r9 @;eeB #nd thus would c#use

conusion, *ist#9e #nd deception to the purch#sin+ pulic.

• he "irector o P#tents +r#nted the c#ncell#tion on the +round th#t petitioner4s tr#de*#r9 w#s

conusin+l% si*il#r to pri#te respondent4s *#r9 ec#use @it is the word Q;ee4 which dr#ws the

#ttention o the u%er #nd le#ds hi* to conclude th#t the +oods ori+in#ted ro* the s#*e

*#nu#cturer.

• 8t is undeni#l% the do*in#nt e#ture o the *#r9.

• he CA #ir*ed.

I++u!

• Jhether the tr#de*#r9 @St%listic Mr. ;eeB tends to *isle#d or conuse the pulic #nd constitutes

#n inrin+e*ent o the tr#de*#r9 @;ee.B

H!ld

14



• NO, ec#use l#c9 o #deFu#te proo o #ctu#l use o its tr#de*#r9 in the Philippines prior to

*er#lds use o its own *#r9 #nd or #ilure to est#lish conusin+ si*il#rit% etween s#id

tr#de*#r9s, H" ;ee Co4s #ction or inrin+e*ent *ust necess#ril% #il.

• *er#ld4s @St%listic Mr. ;eeB is not conusin+l% si*il#r to pri#te respondent4s @;B tr#de*#r9.

Color#le i*it#tion "7S N7 APP;K ec#use!

1. Petitioner4s tr#de*#r9 is the whole @SK;8S8C MR. ;.B Althou+h on its l#el the word

@;B is pro*inent, the tr#de*#r9 should e considered #s # whole #nd not piece*e#l. he

dissi*il#rities etween the two *#r9s eco*e conspicuous, notice#le #nd sust#nti#l

enou+h to *#tter especi#ll% in the li+ht o the ollowin+ #ri#les th#t *ust e #ctored in,

#*on+ others!

#. Dpensie #nd #lu#le ite*s #re nor*#ll% ou+ht onl% #ter delier#te,

co*p#r#tie #nd #n#l%tic#l inesti+#tion3 #nd

. he #er#+e 2ilipino consu*er +ener#ll% u%s his ?e#ns % r#nd.

&. @;B is pri*#ril% # surn#*e. Pri#te respondent c#nnot, thereore, #cFuire eDclusie

ownership oer #nd sin+ul#r use o s#id ter*.

. Ater # *eticulous stud% o the records, the SC oseres th#t the "irector o P#tents #nd

the Court o Appe#ls relied *#inl% on the re+istr#tion certiic#tes #s proo o use % H" ;ee

Co o the tr#de*#r9 @;B which #re not suicient

St!"ling P"odu$t+ V+. Fa"3!na3"i!n Ba7!" GR L;:=, < A%"il := En Ban$, San$*!5 (&.

Fa$t+

• he #%er Cross in circle @tr#de*#r9 w#s re+istered in Ger*#n% in 1'/ to 2#ren#ri9en or*.

2riedr. #%er (22), successor to the ori+in#l 2riedr. #u%er et. Co*p., #nd predecessor to

2#ren#ri9en #%er #9tien+essel cr#t (2&). he @#%er, #nd @#%er Cross in circleB

tr#de*#r9s were #cFuired % sterlin+ "ru+ 8nc. when it #cFuired 224s susidi#r% #%er Co. o

New Kor9 #s # result o the seFuestr#tion o its #ssets % the 5S Alien Propert% Custodi#n durin+

Jorld J#r 8. #%er products h#e een 9nown in Philippines % the close o the 1th centur%.

Sterlin+ "ru+s, 8nc., howeer, owns the tr#de*#r9s @#%erB in rel#tion to *edicine. 2A

#tte*pted to re+ister its che*ic#l products with the @#%er Cross in circleB tr#de*#r9s. Sterlin+

Products 8ntern#tion#l #nd 2A see9 to eDclude e#ch other ro* use o the tr#de*#r9s in the

Philippines. he tri#l court sust#ined SP84s ri+ht to use the #%er tr#de*#r9 or *edicines #nddirected 2A to #dd distinctie word(s) in their *#r9 to indic#te their products co*e ro*

Ger*#n%.B oth #ppe#led.

I++u!

• Jhether SP84s ownership o the tr#de*#r9s eDtends to products not rel#ted to *edicine.

H!ld

• No. SP84s certiic#tes o re+istr#tion #s to the #%er tr#de*#r9s re+istered in the Philippines coer

*edicines onl%. Nothin+ in the certiic#tes include che*ic#ls or insecticides. SP8 thus *#% not

cl#i* @irst useB o the tr#de*#r9s prior to the re+istr#tions thereo on #n% product other th#n

*edicines. 2or i otherwise held, # situ#tion *#% #rise where% #n #pplic#nt *#% e te*pted to

re+ister # tr#de*#r9 on #n% #nd #ll +oods which his *ind *#% conceie een i he h#d neer

intended to use the tr#de*#r9 or the s#id +oods. 7*nius re+istr#tion is not conte*pl#ted %

the r#de*#r9 ;#w. he net result o the decision is th#t SP8 *#% hold on its #%er tr#de*#r9 or

*edicines #nd 2A *#% continue usin+ the s#*e tr#de*#r9s or insecticide #nd other che*ic#ls,

not *edicine. he or*ul# #shioned % the lower court #oids the *ischie o conusion o ori+in,

15



#nd does not isit 2A with repro#tion #nd conde*n#tion. A st#te*ent th#t its product c#*e

ro* Ger*#n% #n%how is ut # st#te*ent o #ct.

BERRIS AGRICULTURAL CO., INC. '+. NORV ABA4ANG, G.R. No. :<, O$to3!" :<, 9:

Fa$t+

• A%#d#n+ iled # tr#de*#r9 #pplic#tion with the 8P7 or the *#r9 NS "-1' P;5S or use inconnection with 2un+icide (Cl#ss :) with #ctie in+redient ' M#nco<e. erris A+ricultur#l Co.,8nc. (erris), iled with the 8P7 ure#u o ;e+#l A#irs (8P7-;A) # Veriied Notice o7pposition #+#inst the *#r9 under #pplic#tion #lle+edl% ec#use NS "-1' P;5S is si*il#r#ndEor conusin+l% si*il#r to its re+istered tr#de*#r9 "-1' ' JP, #lso used or 2un+icide(Cl#ss :) with #ctie in+redient ' M#nco<e.

• "irector strellit# eltr#n-Ael#rdo o the 8P7-;A decided in #or o erris. Howeer, A%#d#n+#ppe#led to the CA which reersed the decision.

I++u!+

1. JEN there eDists no conusin+ si*il#rit% etween the *#r9s

&. JEN the c#ncell#tion o Petitioner4s dul% re+istered #nd #lidl% eDistin+ tr#de*#r9 in the #senceo # properl% iled Petition or C#ncell#tion eore the 8ntellectu#l Propert% 7ice is not in #ccordwith the 8ntellectu#l Propert% Code #nd #pplic#le "ecisions o the Supre*e Court.

H!ld

Fi"+t I++u!

he deter*in#tion o priorit% o use o # *#r9 is # Fuestion o #ct. Adoption o the *#r9 #lonedoes not suice. 7ne *#% *#9e #dertise*ents, issue circul#rs, distriute price lists on cert#in+oods, ut these #lone will not inure to the cl#i* o ownership o the *#r9 until the +oods e#rin+

the *#r9 #re sold to the pulic in the *#r9et. Accordin+l%, receipts, s#les inoices, #ndtesti*onies o witnesses #s custo*ers, or orders o u%ers, est proe the #ctu#l use o # *#r9in tr#de #nd co**erce durin+ # cert#in period o ti*e.

8n the inst#nt c#se, oth p#rties h#e su*itted proo to support their cl#i* o ownership o theirrespectie tr#de*#r9s. erris presented the ollowin+ eidence! (1) its tr#de*#r9 #pplic#tiond#ted Noe*er &, &''& with Applic#tion No. /-&''&-''1'&0&3 (&) its 8P7 certiic#te ore+istr#tion d#ted 7ctoer &:, &''/ #nd $ul% , &''/ #s the d#te o re+istr#tion3 () # photocop%o its p#c9#+in+ e#rin+ the *#r9 "-1' ' JP3 (/) photocopies o its s#les inoices #nd oici#lreceipts3 #nd (:) its not#ri<ed "A5 d#ted April &, &'', st#tin+ th#t the *#r9 w#s irst used on$une &', &''&, #nd indic#tin+ th#t, #s proo o #ctu#l use, copies o oici#l receipts or s#lesinoices o +oods usin+ the *#r9 were #tt#ched #s AnneD .

A%#d#n+4s proos consisted o the ollowin+! (1) # photocop% o the p#c9#+in+ or his *#r9etedun+icide e#rin+ *#r9 NS "-1' P;5S3 (&) A%#d#n+4s Aid#it d#ted 2eru#r% 1/,&''6, st#tin+ #*on+ others th#t the *#r9 NS "-1' P;5S w#s his own cre#tion deried ro*! N

O or Nor%, his n#*e3 S O or Soled#d, his wie4s n#*e3 " O the irst letter or "ece*er, his irth*onth3 1' O or 7ctoer, the 1'th *onth o the %e#r, the *onth o his usiness n#*e re+istr#tion3#nd P;5S O to connote superior Fu#lit%3 th#t when he #pplied or re+istr#tion, there w#s nood%#ppl%in+ or # *#r9 si*il#r to NS "-1' P;5S () Certiic#tion d#ted "ece*er 1, &'': issued% the 2PA, st#tin+ th#t NS "-1' P;5S is owned #nd distriuted % NS Northern 7r+#nic

16



2ertili<er, re+istered with the 2PA since M#% &6, &'', #nd h#d een in the *#r9et since $ul% ',&''3

erris is the prior user o the *#r9. erris w#s #le to est#lish th#t it w#s usin+ its *#r9 "-1' 'JP since $une &', &''&, een eore it iled or its re+istr#tion with the 8P7 on Noe*er &,&''&, #s shown % its "A5 which w#s under o#th #nd not#ri<ed, e#rin+ the st#*p o the ure#u

o r#de*#r9s o the 8P7 on April &:, &'', #nd the "A5, ein+ # not#ri<ed docu*ent, especi#ll%when receied in due course % the 8P7, is eidence o the #cts it st#ted #nd h#s thepresu*ption o re+ul#rit%, entitled to ull #ith #nd credit upon its #ce. he "A5 is supported %the Certiic#tion d#ted April &1, &''6 issued % the ure#u o r#de*#r9s th#t erris4 *#r9 is still#lid #nd eDistin+.

Accordin+ to Section 1&.1(d) o R.A. No. &, # *#r9 c#nnot e re+istered i it is identic#l with# re+istered *#r9 elon+in+ to # dierent proprietor with #n e#rlier ilin+ or priorit% d#te, withrespect to! (1) the s#*e +oods or serices3 (&) closel% rel#ted +oods or serices3 or () ne#rrese*l#nce o such *#r9 #s to li9el% deceie or c#use conusion.

Co*p#rin+ erris4 *#r9 "-1' ' JP with A%#d#n+4s *#r9 NS "-1' P;5S, #s #ppe#rin+ ontheir respectie p#c9#+es, one c#nnot ut notice th#t oth h#e # co**on co*ponent which is

"-1'. 7n erris4 p#c9#+e, the "-1' is written with # i++er ont th#n the ' JP. Ad*ittedl%,the "-1' is the do*in#nt e#ture o the *#r9. he "-1', ein+ #t the e+innin+ o the *#r9, iswh#t is *ost re*e*ered o it. Althou+h, it #ppe#rs in erris4 certiic#te o re+istr#tion in thes#*e ont si<e #s the ' JP, its do*in#nc% in the "-1' ' JP *#r9 st#nds since thedierence in the or* does not #lter its distinctie ch#r#cter.

Appl%in+ the "o*in#nc% est, it c#nnot e +#ins#id th#t A%#d#n+4s NS "-1' P;5S is si*il#r toerris4 "-1' ' JP, th#t conusion or *ist#9e is *ore li9el% to occur. 5ndeni#l%, oth *#r9spert#in to the s#*e t%pe o +oods O un+icide with ' M#nco<e #s #n #ctie in+redient #ndused or the s#*e +roup o ruits, crops, e+et#les, #nd orn#*ent#l pl#nts, usin+ the s#*edos#+e #nd *#nner o #pplic#tion. he% #lso elon+ to the s#*e cl#ssiic#tion o +oods underR.A. No. &. oth depictions o "-1', #s ound in oth *#r9s, #re si*il#r in si<e, such th#tthis portion is wh#t c#tches the e%e o the purch#ser. 5ndeni#l%, the li9elihood o conusion ispresent.

his li9elihood o conusion #nd *ist#9e is *#de *ore *#niest when the Holistic est is #pplied,t#9in+ into consider#tion the p#c9#+in+, or oth use the s#*e t%pe o *#teri#l (oil t%pe) #ndh#e identic#l color sche*es (red, +reen, #nd white)3 #nd the *#r9s #re oth predo*in#ntl% redin color, with the s#*e phr#se R7A" SPCR5M 25NG8C8" written underne#th.

Considerin+ these stri9in+ si*il#rities, predo*in#ntl% the "-1', the u%ers o oth products,*#inl% #r*ers, *#% e *isled into thin9in+ th#t NS "-1' P;5S could e #n up+r#dedor*ul#tion o the "-1' ' JP.

A+ to t*! S!$ond I++u!

8P7, % re#son o their speci#l 9nowled+e #nd eDpertise oer *#tters #llin+ under their ?urisdiction, #re in # etter position to p#ss ?ud+*ent on *#tters re+#rdin+ intellectu#lpropert%. hus, their indin+s o #ct in th#t re+#rd #re +ener#ll% #ccorded +re#t respect, i notin#lit% % the courts, #s lon+ #s the% #re supported % sust#nti#l eidence, een i sucheidence *i+ht not e oerwhel*in+ or een preponder#nt. 8t is not the t#s9 o the #ppell#tecourt to wei+h once *ore the eidence su*itted eore the #d*inistr#tie od% #nd to sustituteits own ?ud+*ent or th#t o the #d*inistr#tie #+enc% in respect to suicienc% o eidence.

8n#s*uch #s the ownership o the *#r9 @"-1' ' JPB ittin+l% elon+s to erris, #nd ec#use thes#*e should not h#e een c#ncelled % the CA, we consider it proper not to el#or #n%*orethe issue o whether c#ncell#tion o # re+istered *#r9 *#% e done #sent # petition orc#ncell#tion.

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Philip Morris

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