To Print Cases
Transcript of To Print Cases
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Republic of the Philippines
SUPREME COURT
Manila
EN BANC
G.R. No. L-28744 April 29, 1971
ACOJE MINING CO., INC., petitioner-applicant,
vs.
THE IRECTOR O! PATENTS, respondent.
Manuel M. Antonio and Roman G. Pacia for petitioner.
Office of the Solicitor General Antonio P. Barredo, Assistant Solicitor
General Frine' C. Zaallero, Solicitor Antonio M. Martine! and Attorne"
Amado #. Mar$ue! for respondent.
!ERNANO, J.:
The issue before us is simple and uncomplicated. Ma petitioner Aco!e
Minin" Compan re"ister for the purpose of advertisin" its product, so
sauce, the trademar# $%T&', there bein" alread in e(istence one suchre"istered in favor of the Philippine Refinin" Compan for its product, edible
oil, it bein" further sho)n that the trademar# applied for is in smaller tpe,
colored differentl, set on a bac#"round )hich is dissimilar as to ield a
distinct appearance* The ans)er of the +irector of Patents )as in the
ne"ative. ence this appeal )hich )e sustain in the li"ht of the controllin"
norm as set forth in the American ire Cable Co. care. 1 The facts as set
forth in the appealed decision follo)/ 0%n 'eptember 12, 1345, Aco!e
Minin" Co., 6nc. a domestic corporation, filed an application for re"istration
of the trademar# $%T&', used on 'o 'auce, Class 27. &se in commerce in
the Philippines since 8une 1, 1345 is asserted. The Chief trademar# E(aminer
finall re!ected the application b reason of confusin" similarit )ith the
trademar# $%T&' re"istered in this %ffice under Certificate of Re"istration
No. 19274 issued in favor of Philippine Refinin" C%., 6nc., another domestic
corporation. The cited mar# is bein" used on edible oil, Class 27.0 2 The
matter )as then elevated to respondent +irector of Patents )ho, on 8anuar
:1, 134;, upheld the vie) of the Chief Trademar# E(aminer and re!ected the
application of Petitioner on the "round that )hile there is a difference
bet)een so sauce and edible oil and there )ere dissimilarities in the
trademar#s due to tpe of letters used as )ell as in the si it
)ould be sufficient, for purposes of the la), that the similarit bet)een the
t)o labels, is such that there is a possibilit or li#elihood of the purchaser of
the older brand mista#in" the ne)er brand for it.0 #
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Can it be said then that petitioner?s application )ould be li#el to cause
confusion or mista#e on the part of the buin" public* The ans)er should be
in the ne"ative. 6t does not def common sense to assert that a purchaser
)ould be co"ni
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under Class 27. Alle"ed date of first use of the trademar# b respondent )as
on @ebruar 1D, 1353.
After due publication of the application, petitioner filed an opposition, in
accordance )ith 'ection ; of Republic Act No. 144, other)ise #no)n as the
Trademar# $a), as amended. Basis of petitioner?s opposition )as 'ection
2d of said la), )hich provides as unre"istrable/
a mar# )hich consists of or comprises a mar# or tradename
)hich so resembles a mar# or tradename re"istered in the
Philippines or a mar# or tradename previousl used in the
Philippines b another and not abandoned, as to be li#el,
)hen applied to or used in connection )ith the "oods,
business services of the applicant, to cause confusion or
mista#e or to deceive purchasers.
The parties submitted the case for decision )ithout presentin" an evidence/thereafter the +irector of patents rendered a decision allo)in" re"istration of
the trademar# 0CAM6A0 in favor of N" 'am.
Petitioner moved for a reconsideration, but the same )as denied.
ence, this petition.
A rudimentar precept in trademar# protection is that 0the ri"ht to a
trademar# is a limited one, in the sense that others ma used the same mar#
on unrelated "oods.0 1 Thus, as pronounced b the &nited 'tates 'upremeCourt in the case of American Foundries (s. Roertson 2, 0the mere fact that
one person has adopted and used a trademar# on his "oods does not prevent
the adoption and use of the same trademar# b others on articles of a
different description.0
'uch restricted ri"ht over a trademar# is li#e)ise reflected in our Trademar#
la). &nder 'ection 2d of the la), re"istration of a trademar# )hich so
resembles another alread re"istered or in use should be denied, )here to
allo) such re"istration could li#el result in confusion, mista#e or deception
to the consumers. Conversel, )here no confusion is li#el to arise, as in this
case, re"istration of a similar or even 6dentical mar# ma be allo)ed.
The term 0CAM6A0 is descriptive of a )hole "enus of "arden plants )ith
fra"rant )hite flo)ers. 'ome people call the 0CAM6A0 the 0)hite "in"er
plant0 because of its tuberous roots, )hile children refer to it as the butterfl
flo)er because of its shape. Bein" a "eneric and common term, its
appropriation as a trademar#, albeit in a fanciful manner in that it bears no
relation to the product it 6dentifies, is valid. o)ever, the de"ree of
e(clusiveness accorded to each user is closel restricted. "
The records of this case disclose that the term 0CAM6A0 has been re"istered
as a trademar# not onl b petitioner but b t)o 9 other concerns, as
follo)s/
1. CAM6A Application No. 9;D Re"istration No. 'R-:9D+ate Re"istered Ma 94, 134D %)ner Everbri"ht
+evelopment Compan Business Address :1D M. . del
Pilar Frace Par#, Caloocan Cit Class 2 Thread and Garn
9. CAM6A and Representation Application No. 5:; +ate
@iled Au"ust 1D, 1325 +ate Re"istered - April 9D, 1324
%)ner @.E. Huelli", 6nc. Business Address 55 Rosario
't., Manila Class 2: Particular Food on )hich mar# is
used/ Te(tiles, Embroideries laces, etc.
A trademar# is desi"ned to 6dentif the user. But it should be so distinctive
and sufficientl ori"inal as to enable those )ho come into contact )ith it to
reco"ni
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derived from coined )ords such as 0Role(0, 0Ioda#0 or 0Iote(0. 6t has been
held that if a mar# is so commonplace that it cannot be readil distin"uished
from others, then it is apparent that it cannot 6dentif a particular business>
and he )ho first adopted it cannot be in!ured b an subse=uent
appropriation or imitation b others, and the public )ill not be deceived.0 #
The trademar# 0CAM6A0 is used b petitioner on a )ide ran"e of products/
lard, butter, coo#in" oil, abrasive deter"ents, polishin" materials and soap of
all #inds. Respondent desires to use the same on his product, ham. hile
ham and some of the products of petitioner are classified under Class 27
@oods and 6n"redients of @ood, this alone cannot serve as the decisive
factor in the resolution of )hether or not the are related "oods. Emphasis
should be on the similarit of the products involved and not on the arbitrar
classification or "eneral description of their properties or characteristics.
6n his decision, the +irector of Patents enumerated the factors that set
respondent?s product apart from the "oods of petitioner. e opined and e=uote/
6 have ta#en into account such factors as probable purchaser
attitude and habits, mar#etin" activities, retail outlets, and
commercial impression li#el to be conveed b the
trademar#s if used in con!unction )ith the respective "oods
of the parties. 6 believe that ham on one hand, and lard,
butter, oil, and soap on the other are products that )ould not
move in the same manner throu"h the same channels of
trade. The pertain to unrelated fields of manufacture, mi"ht be distributed and mar#eted under dissimilar conditions, and
are displaed separatel even thou"h the fre=uentl ma be
sold throu"h the same retail food establishments. %pposer?s
products are ordinar da-to-da household items )hereas
ham is not necessaril so. Thus, the "oods of the parties are
not of a character )hich purchasers )ould be li#el to
attribute to a common ori"in. p. 9:, Rollo.
The observation and conclusion of the +irector of Patents are correct. The
particular "oods of the parties are so unrelated that consumers )ould not in
an probabilit mista#e one as the source or ori"in of the product of the
other. 0am0 is not a dail food fare for the avera"e consumer. %ne
purchasin" ham )ould e(ercise a more cautious inspection of )hat he bus
on account of it price. 'eldom, if ever, is the purchase of said food product
dele"ated to household helps, e(cept perhaps to those )ho, li#e the coo#s,
are e(pected to #no) their business. Besides, there can be no li#elihood for
the consumer of respondent?s ham to confuse its source as anone but
respondent. The facsimile of the label attached b him on his product, his
business name 0'AM?' AM AN+ BAC%N @ACT%RG0 )ritten in bold
)hite letters a"ainst a reddish oran"e bac#"round $, is certain to catch the ee
of the class of consumers to )hich he caters.
6n addition, the "oods of petitioners are basicall derived from ve"etable oil
and animal fats, )hile the product of respondent is processed from pi"?s le"s.
A consumer )ould not reasonabl assume that, petitioner has so diversifiedits business as to include the product of respondent.
Mr. Runolf Callman, in 'ection ;D.:, %$. 6, p. 1191 of his boo#, &nfair
Competition and Trade Mar#s, declare/
hile confusion of "oods can onl be evident, )here the
liti"ants are actuall in competition, confusion of business
ma arise bet)een non-competitive interests as )ell. This is
true )hether or not the trademar#s are re"istered. 'ec. 14 of
the Trademar# Act, in referrin" to ?merchandise ofsubstantiall the same descriptive properties, embraces
competitive and non-competitive trademar# infrin"ement
ut it is not so etensi(e as to e applicale to cases /here
the pulic /ould not reasonal" epect the plaintiff to ma%e
or sell the same class of oods as those made or sold " the
defendant . Emphasis supplied.
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6n fine, e hold that the businesss of the parties are non-competitive and
their products so unrelated that the use of 6dentical trademar#s is not li#el to
"ive rise to confusion, much less cause dama"e to petitioner.
ERE@%RE, the instant petition is hereb dismissed and the decision of
the +irector of Patents in 6nter Partes Case No. 9:1 affirmed in toto. Costs
a"ainst petitioner.
'% %R+ERE+.
Barredo 0Chairman1, A$uino, Concepcion, &r., Guerrero, Aad Santos and
e Castro, &&., concur.
S+p(r(+ Opi)io)
E CASTRO, J., dissentin"/
6 vote to "rant the petition of the Philippine Refinin" Co. 6nc. As the
re"istered o)ner and prior user of the trademar#, 0CAM6A0 on a )ide
variet of products such as lard, butter, coo#in" oil, abrasive deter"ents,
polishin" materials and soap of all #inds, the respondent?s ham )hich comesunder the same classification of 0@ood and 6n"redients of @oods0 under
)hich petitioner has re"istered its trademar#, if "iven the same trademar#,
0CAM6A0 is li#el to confuse the public that the source of the ham is the
petitioner. if the respondent?s ham is of poor =ualit, petitioner?s business
ma thus be affected adversel as a result, )hile from the standpoint of the
purchasers, some measure of deception ma ta#e effect upon them. Thus, the
use of the same trademar# on the ham )ould li#el result in confusion as to
the source or ori"in thereof, to the dama"e or detriment of the petitioner. The
purpose of the la) )ill be served better b not allo)in" the re"istration of
the trademar# 0CAM6A0 for respondent?s ham, )ith such a limitless number
of other )ords respondent ma choose from, as trademar# for his product.
S+p(r(+ Opi)io)
E CASTRO, J., dissentin"/
6 vote to "rant the petition of the Philippine Refinin" Co. 6nc. As the
re"istered o)ner and prior user of the trademar#, 0CAM6A0 on a )ide
variet of products such as lard, butter, coo#in" oil, abrasive deter"ents,
polishin" materials and soap of all #inds, the respondent?s ham )hich comes
under the same classification of 0@ood and 6n"redients of @oods0 under
)hich petitioner has re"istered its trademar#, if "iven the same trademar#,
0CAM6A0 is li#el to confuse the public that the source of the ham is the
petitioner. if the respondent?s ham is of poor =ualit, petitioner?s business
ma thus be affected adversel as a result, )hile from the standpoint of the
purchasers, some measure of deception ma ta#e effect upon them. Thus, the
use of the same trademar# on the ham )ould li#el result in confusion as to
the source or ori"in thereof, to the dama"e or detriment of the petitioner. The purpose of the la) )ill be served better b not allo)in" the re"istration of
the trademar# 0CAM6A0 for respondent?s ham, )ith such a limitless number
of other )ords respondent ma choose from, as trademar# for his product.
!oo)o+
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Republic of the Philippines
SUPREME COURT
Manila
@6R'T +66'6%N
G.R. No. L-447'7 A%% "1, 1982
HIC/O/ MANU!ACTURING CO., INC., petitioner,
vs.
COURT O! APPEALS 00 ()* SANTOS LIM UN LIONG, respondents.
S"cip, Sala!ar, Feliciano, 2ernande! - Castillo #a/ Offices for petitioner.
)a3ada, Sanche!, )afiada - )anada #a/ Offices and Geore R. Arolario
for respondents.
TEEHAN/EE, J.:1äwphï1.ñët
The Court affirms on the stren"th of controllin" doctrine as reaffirmed in the
companion case of +sso Standard +astern 4nc. (s. Court of Appeals 1
promul"ated also on this date and the recent case of Philippine Refinin Co.,
4nc. (s. 5 Sam and irector of Parents 2 the appealed decision of the Court
of Appeals reversin" the patent director?s decision and instead dismissin"
petitioner?s petition to cancel private respondent?s re"istration of thetrademar# of 6CI%I for its Mari#ina shoes as a"ainst petitioner?s earlier
re"istration of the same trademar# for its other non-competin" products.
%n the basis of the applicable reasons and considerations e(tensivel set
forth in the above-cited controllin" precedents and the leadin" case of Aco6e
Minin Co., 4nc. (s. irector of Patents " on )hich the appellate court
anchored its decision at bar, said decision must stand affirmed, as follo)s/
78/ph97.3:t
An e(amination of the trademar# of petitioner-appellee and
that of re"istrant-appellant convinces us that there is a
difference in the desi"n and the colorin" of, as )ell as in the
)ords on the ribbons, the t)o trademar#s.
6n petitioner-appellee?s trademar# for hand#erchiefs E(hibit
?J?, the )ord ?6CI%I? is in red )ith )hite bac#"round in
the middle of t)o branches of laurel in li"ht "old. At the
lo)er part thereof is a ribbon on )hich are the )ords
?P%'6T6E$G @6NER? in li"ht "old. 6n the trademar# for
under)ear E(hibit ?R?, the )ord ?6CI%I? is also in red
)ith )hite bac#"round in the middle of t)o branches of
laurel in dar# "old )ith similar ribbons and the )ords
?P%'6T6E$G @6NER? in dar# "old. And in the trademar#
for briefs E(hibit ?'?, the )ord ?6CI%I? is in )hite but
)ith red bac#"round in the middle of t)o branches of laurel,
the leaves bein" in dar# "old )ith )hite ed"es, and )ithsimilar ribbon and )ords ?P%'6T6E$G @6NER? in dar#
"old. 6n contrast, in respondent-appellant?s trademar#
E(hibit ?8?, the )ord ?6CI%I? is in )hite )ith "old
bac#"round bet)een the t)o branches of laurel in red, )ith
the )ord ?'%E'? also in red belo) the )ord ?6CI%I?.9t
;
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6n the recent case of Aco6e Minin Co., 4nc. (s. irector of
Patents, :; 'CRA 2;D, 2;9-2;:, the 'upreme Court stated -
78/ph97.3:t
Can it be said then that petitioner?s
application )ould be li#el to cause
confusion or mista#e on the part of the
buin" public* The ans)er should be in the
ne"ative. 6t does not def common sense to
assert that a purchaser )ould be co"ni
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Ma%asiar, &., is on lea(e. *as$ue!, &., too% no part.
Republic of the Philippines
SUPREME COURT
Manila
@6R'T +66'6%N
G.R. No. L-29971 A%% "1, 1982
ESSO STANAR EASTERN, INC., petitioner,
vs.
THE HONORALE COURT O! APPEALS 00 ()* UNITE
CIGARETTE CORPORATION, respondents.
TEEHAN/EE, J.:1äwphï1.ñët
The Court affirms on the basis of controllin" doctrine the appealed decision
of the Court of Appeals reversin" that of the Court of @irst 6nstance of
Manila and dismissin" the complaint filed b herein petitioner a"ainst private
respondent for trade infrin"ement for usin" petitioner?s trademar# E''%,
since it clearl appears that the "oods on )hich the trademar# E''% is used
b respondent is non-competin" and entirel unrelated to the products of
petitioner so that there is no li#elihood of confusion or deception on the part
of the purchasin" public as to the ori"in or source of the "oods.
Petitioner Esso 'tandard Eastern, 6nc., 1 then a forei"n corporation dul
licensed to do business in the Philippines, is en"a"ed in the sale of petroleum
products )hich are 6dentified )ith its trademar# E''% )hich as successor
of the defunct 'tandard acuum %il Co. it re"istered as a business name )ith
the Bureaus of Commerce and 6nternal Revenue in April and Ma, 1349.
Private respondent in turn is a domestic corporation then en"a"ed in the
manufacture and sale of ci"arettes, after it ac=uired in November, 134: the
business, factor and patent ri"hts of its predecessor $a %riental Tobacco
Corporation, one of the ri"hts thus ac=uired havin" been the use of the
trademar# E''% on its ci"arettes, for )hich a permit had been dul "ranted
b the Bureau of 6nternal Revenue.
Barel had respondent as such successor started manufacturin" ci"arettes
)ith the trademar# E''%, )hen petitioner commenced a case for trademar#
infrin"ement in the Court of @irst 6nstance of Manila. The complaint alle"ed
that the petitioner had been for man ears en"a"ed in the sale of petroleum
products and its trademar# E''% had ac=uired a considerable "ood)ill to
such an e(tent that the buin" public had al)as ta#en the trademar# E''%
as e=uivalent to hi"h =ualit petroleum products. Petitioner asserted that the
continued use b private respondent of the same trademar# E''% on its
ci"arettes )as bein" carried out for the purpose of deceivin" the public as to
its =ualit and ori"in to the detriment and disadvanta"e of its o)n products.
6n its ans)er, respondent admitted that it used the trademar# E''% on its
o)n product of ci"arettes, )hich )as not 6dentical to those produced and
sold b petitioner and therefore did not in an )a infrin"e on or imitate
petitioner?s trademar#. Respondent contended that in order that there ma be
trademar# infrin"ement, it is indispensable that the mar# must be used b one
person in connection or competition )ith "oods of the same #ind as the
complainant?s.
The trial court, relin" on the old cases of An (s. )eodoro 2 and Arce -Sons, 4nc. (s. Selecta Biscuit Compan", " referrin" to related products,
decided in favor of petitioner and ruled that respondent )as "uilt of
infrin"ement of trademar#.
%n appeal, respondent Court of Appeals found that there )as no trademar#
infrin"ement and dismissed the complaint. Reconsideration of the decision
havin" been denied, petitioner appealed to this Court b )a of certiorari to
reverse the decision of the Court of Appeals and to reinstate the decision of
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the Court of @irst 6nstance of Manila. The Court finds no "round for "rantin"
the petition.
The la) defines infrin"ement as the use )ithout consent of the trademar#
o)ner of an 0reproduction, counterfeit, cop or colorable limitation of an
re"istered mar# or tradename in connection )ith the sale, offerin" for sale, or
advertisin" of an "oods, business or services on or in connection )ith )hich
such use is li#el to cause confusion or mista#e or to deceive purchasers or
others as to the source or ori"in of such "oods or services, or 6dentit of such
business> or reproduce, counterfeit, cop or colorabl imitate an such mar#
or tradename and appl such reproduction, counterfeit, cop or colorable
limitation to labels, si"ns, prints, pac#a"es, )rappers, receptacles or
advertisements intended to be used upon or in connection )ith such "oods,
business or services.0 4 6mplicit in this definition is the concept that the "oods
must be so related that there is a li#elihood either of confusion of "oods or
business. # But li#elihood of confusion is a relative concept> to be determined
onl accordin" to the particular, and sometimes peculiar, circumstances ofeach case. $ 6t is un=uestionabl true that, as stated in Courn (s. Puritan
Mills, 4nc. 7 06n trademar# cases, even more than in other liti"ation, precedent
must be studied in the li"ht of the facts of the particular case.
6t is undisputed that the "oods on )hich petitioner uses the trademar# E''%,
petroleum products, and the product of respondent, ci"arettes, are non-
competin". But as to )hether trademar# infrin"ement e(ists depends for the
most part upon )hether or not the "oods are so related that the public ma
be, or is actuall, deceived and misled that the came from the same ma#er
or manufacturer. @or non-competin" "oods ma be those )hich, thou"h theare not in actual competition, are so related to each other that it mi"ht
reasonabl be assumed that the ori"inate from one manufacturer. 5on>
competin "oods ma also be those )hich, bein" entirel unrelated , could
not reasonabl be assumed to have a common source. in the former case of
related "oods, confusion of business could arise out of the use of similar
mar#s> in the latter case of non-related "oods, it could not. 8 The vast
ma!orit of courts toda follo) the modern theor or concept of 0related
"oods0 9 )hich the Court has li#e)ise adopted and uniforml reco"ni
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B the same to#en, in the recent case of Philippine Refinin Co., 4nc. (s. 5
Sam and irector of Patents, 18 the Court upheld the patent director?s
re"istration of the same trademar# CAM6A for therein respondent?s product
of ham not)ithstandin" its alread bein" used b therein petitioner for a
)ide ran"e of products/ lard butter, coo#in" oil, abrasive deter"ents,
polishin" materials and soap of all #inds. The Court, after notin" that the
same CAM6A trademar# had been re"istered b t)o other companies,
Everbri"ht +evelopment Compan and @. E. Huelli", 6nc. for their respective
products of thread and arn for the former and te(tiles, embroideries and
laces for the latter ruled that 0)hile ham and some of the products of
petitioner are classified under Class 27 @oods and 6n"redients of @ood, this
alone cannot serve as the decisive factor in the resolution of )hether or not
the are related "oods. Emphasis should be on the similarit of the products
involved and not on the arbitrar classification or "eneral description of their
properties or characteristics.0 The Court, therefore, concluded that 06n fine,
e hold that the businesses of the parties are non-competitive and their
products so unrelated that the use of 6dentical trademar#s is not li#el to "iverise to confusion, much less cause dama"e to petitioner.0
6n the situation before us, the "oods are obviousl different from each other
)ith 0absolutel no iota of similitude0 19 as stressed in respondent court?s
!ud"ment. The are so forei"n to each other as to ma#e it unli#el that
purchasers )ould thin# that petitioner is the manufacturer of respondent?s
"oods.9t;
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of the three colors. 6t is to be pointed out that not even a shade of these colors
appears on the trademar# of the appellant?s ci"arette. The onl color that the
appellant uses in its trademar# is "reen.0 24
Even the lo)er court, )hich ruled initiall for petitioner, found that a
0noticeable difference bet)een the brand E''% bein" used b the defendants
and the trademar# E''% of the plaintiff is that the former has a rectan"ular
bac#"round, )hile in that of the plaintiff the )ord E''% is enclosed in an
oval bac#"round.0
6n point of fact and time, the Court?s dismissal of the petition at bar )as
presa"ed b its Resolution of Ma 91, 1373 dismissin" b minute resolution
the petition for revie) for lac# of merit in the 6dentical case of Shell
Compan" of the Philippines, #td (s. Court of Appeals 2#, )herein the Court
thereb affirmed the patent office?s re"istration of the trademar# 'E$$ as
used in the ci"arettes manufactured b therein respondent @ortune Tobacco
Corporation not)ithstandin" the therein petitioner 'hell Compan?sopposition thereto as the prior re"istrant of the same trademar# for its
"asoline and other petroleum trademar#s, on the stren"th of the controllin"
authorit of Aco6e Minin Co. (s. irector of Patents, Supra, and the same
rationale that 06n the Philippines, )here buers of appellee?s @ortune
Corp.?s ci"arettes, )hich are lo) cost articles, can be more numerous
compared to buers of the hi"her priced petroleum and chemical products of
appellant 'hell Co. and )here appellant 'hell is #no)n to be in the
business of sellin" petroleum and petroleum-based chemical products, and no
others, it is difficult to conceive of confusion in the minds of the buin"
public in the sense it can be thou"ht that appellant 'hell is the manufacturer
of appellee?s @ortune?s ci"arettes, or that appellee @ortune is the
manufacturer or processor of appellant?s 'hell?s petroleum and chemical
products.0 2$
ACC%R+6NF$G, the petition is dismissed and the decision of respondent
Court of Appeals is hereb affirmed.
Melencio>2errera, Plana, Relo(a and Gutierre!, &r., &&., concur.78/ph97.3:t
Ma%asiar, &., is on lea(e.
*as$ue!, &., too% no part.
Republic of the Philippines
SUPREME COURT
Manila
T6R+ +66'6%N
G.R. No. 12'9'' J%l& 2', 2'''
CANON /AUSHI/I /AISHA, petitioner,
vs.
COURT O! APPEALS ()* NSR RUER CORPORATION,
respondents.
GON3AGA-REES, J .5
Before us is a petition for revie) that see#s to set aside the +ecision 1 dated
@ebruar 91, 1335 of the Court of Appeals in CA-FR 'P No. :D9D:, entitled
0Canon Iabushi#i Iaisha vs. N'R Rubber Corporation0 and its Resolution
dated 8une 97, 1335 denin" the motion for reconsideration of herein
petitioner Canon Iabushi#i Iaisha petitioner.
%n 8anuar 15, 13;5, private respondent N'R Rubber Corporation private
respondent filed an application for re"istration of the mar# CAN%N for
sandals in the Bureau of Patents, Trademar#s, and Technolo" Transfer
BPTTT. A erified Notice of %pposition )as filed b petitioner, a forei"n
corporation dul or"ani
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Petitioner moved to declare private respondent in default for its failure to file
its ans)er )ithin the prescribed period. The BPTTT then declared private
respondent in default and allo)ed petitioner to present its evidence e>parte.
Based on the records, the evidence presented b petitioner consisted of its
certificates of re"istration for the mar# CAN%N in various countries
coverin" "oods belon"in" to class 9 paints, chemical products, toner, and
de stuff. Petitioner also submitted in evidence its Philippine Trademar#
Re"istration No. :3:3;, sho)in" its o)nership over the trademar# CAN%N
also under class 9.
%n November 1D, 1339, the BPTTT issued its decision dismissin" the
opposition of petitioner and "ivin" due course to private respondent?s
application for the re"istration of the trademar# CAN%N. %n @ebruar 14,
133:, petitioner appealed the decision of the BPTTT )ith public respondent
Court of Appeals that eventuall affirmed the decision of BPTTT. ence, this
petition for revie).
Petitioner anchors this instant petition on these "rounds/
A PET6T6%NER 6' ENT6T$E+ T% EC$&'6E &'E %@ TE
MARI CAN%N BECA&'E 6T 6' 6T' TRA+EMARI AN+ 6'
&'E+ A$'% @%R @%%TEAR.
B T% A$$% PR6ATE RE'P%N+ENT T% REF6'TER CAN%N
@%R @%%TEAR 6' T% PREENT PET6T6%NER @R%M &'6NF
CAN%N @%R AR6%&' I6N+' %@ @%%TEAR, EN 6N@ACT, PET6T6%NER A' EAR$6ER &'E+ 'A6+ MARI @%R
'A6+ F%%+'.
C PET6T6%NER 6' A$'% ENT6T$E+ T% TE R6FT T%
EC$&'6E$G &'E CAN%N T% PREENT C%N@&'6%N %@
B&'6NE''.
+ PET6T6%NER 6' A$'% ENT6T$E+ T% TE EC$&'6E &'E
%@ CAN%N BECA&'E 6T @%RM' PART %@ 6T' C%RP%RATE
NAME, PR%TECTE+ BG TE PAR6' C%NENT6%N.9
The BPTTT and the Court of Appeals share the opinion that the trademar#
0CAN%N0 as used b petitioner for its paints, chemical products, toner, and
destuff, can be used b private respondent for its sandals because the
products of these t)o parties are dissimilar. Petitioner protests the
appropriation of the mar# CAN%N b private respondent on the "round that
petitioner has used and continues to use the trademar# CAN%N on its )ide
ran"e of "oods )orld)ide. Alle"edl, the corporate name or tradename of
petitioner is also used as its trademar# on diverse "oods includin" foot)ear
and other related products li#e shoe polisher and polishin" a"ents. To lend
credence to its claim, petitioner points out that it has branched out in its
business based on the various "oods carrin" its trademar# CAN%N:,
includin" foot)ear )hich petitioner contends covers sandals, the "oods for
)hich private respondent sou"ht to re"ister the mar# CAN%N. @or petitioner,the fact alone that its trademar# CAN%N is carried b its other products li#e
foot)ear, shoe polisher and polishin" a"ents should have precluded the
BPTTT from "ivin" due course to the application of private respondent.
e find the ar"uments of petitioner to be unmeritorious. %rdinaril, the
o)nership of a trademar# or tradename is a propert ri"ht that the o)ner is
entitled to protect2 as mandated b the Trademar# $a).5 o)ever, )hen a
trademar# is used b a part for a product in )hich the other part does not
deal, the use of the same trademar# on the latter?s product cannot be validl
ob!ected to.4
A revie) of the records sho)s that )ith the order of the BPTTT declarin"
private respondent in default for failure to file its ans)er, petitioner had
ever opportunit to present e>parte all of its evidence to prove that its
certificates of re"istration for the trademar# CAN%N cover foot)ear. The
certificates of re"istration for the trademar# CAN%N in other countries and
in the Philippines as presented b petitioner, clearl sho)ed that said
certificates of re"istration cover "oods belon"in" to class 9 paints, chemical
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products, toner, destuff. %n this basis, the BPTTT correctl ruled that since
the certificate of re"istration of petitioner for the trademar# CAN%N covers
class 9 paints, chemical products, toner, destuff, private respondent can
use the trademar# CAN%N for its "oods classified as class 95 sandals.
Clearl, there is a )orld of difference bet)een the paints, chemical products,
toner, and destuff of petitioner and the sandals of private respondent.
Petitioner counters that not)ithstandin" the dissimilarit of the products of
the parties, the trademar# o)ner is entitled to protection )hen the use of b
the !unior user 0forestalls the normal e(pansion of his business0. 7 Petitioner?s
opposition to the re"istration of its trademar# CAN%N b private respondent
rests upon petitioner?s insistence that it )ould be precluded from usin" the
mar# CAN%N for various #inds of foot)ear, )hen in fact it has earlier used
said mar# for said "oods. 'tretchin" this ar"ument, petitioner claims that it is
possible that the public could presume that petitioner )ould also produce a
)ide variet of foot)ear considerin" the diversit of its products mar#eted
)orld)ide.
e do not a"ree. Even in this instant petition, e(cept for its bare assertions,
petitioner failed to attach evidence that )ould convince this Court that
petitioner has also embar#ed in the production of foot)ear products. e
=uote )ith approval the observation of the Court of Appeals that/
0The herein petitioner has not made #no)n that it intends to venture
into the business of producin" sandals. This is clearl sho)n in its
Trademar# Principal Re"ister E(hibit 0&0 )here the products of
the said petitioner had been clearl and specificall described as0Chemical products, destuffs, pi"ments, toner developin"
preparation, shoe polisher, polishin" a"ent0. 6t )ould be ta(in" one?s
credibilit to aver at this point that the production of sandals could
be considered as a possible 0natural or normal e(pansion0 of its
business operation0.;
6n Faere, 4ncorporated (s. 4ntermediate Appellate Court ,3 the +irector of
patents allo)ed the !unior user to use the trademar# of the senior user on the
"round that the briefs manufactured b the !unior user, the product for )hich
the trademar# BR&TE )as sou"ht to be re"istered, )as unrelated and non-
competin" )ith the products of the senior user consistin" of after shave
lotion, shavin" cream, deodorant, talcum po)der, and toilet soap. The senior
user vehementl ob!ected and claimed that it )as e(pandin" its trademar# to
briefs and ar"ued that permittin" the !unior user to re"ister the same
trademar# )ould allo) the latter to invade the senior user?s e(clusive
domain. 6n sustainin" the +irector of Patents, this Court said that since 0the
senior user has not ventured in the production of briefs, an item )hich is not
listed in its certificate of re"istration, the senior user, cannot and should not
be allo)ed to fei"n that the !unior user had invaded the senior user?s
e(clusive domain.01D e reiterated the principle that the certificate of
re"istration confers upon the trademar# o)ner the e(clusive ri"ht to use its
o)n smbol onl" to those oods specified in the certificate, sub!ect to the
conditions and limitations stated therein.11 Thus, the e(clusive ri"ht of
petitioner in this case to use the trademar# CAN%N is limited to the products
covered b its certificate of re"istration.
Petitioner further ar"ues that the alle"ed diversit of its products all over the
)orld ma#es it plausible that the public mi"ht be misled into thin#in" that
there is some supposed connection bet)een private respondent?s "oods and
petitioner. Petitioner is apprehensive that there could be confusion as to the
ori"in of the "oods, as )ell as confusion of business, if private respondent is
allo)ed to re"ister the mar# CAN%N. 6n such a case, petitioner )ould
alle"edl be immensel pre!udiced if private respondent )ould be permitted
to ta#e 0a free ride on, and reap the advanta"es of, the "ood)ill and
reputation of petitioner Canon0.19 6n support of the fore"oin" ar"uments, petitioner invo#es the rulin"s in Sta. Ana (s. Mali/at 1: , An (s. )eodoro12
and Con(erse Ruer Corporation (s. ?ni(ersal Ruer Products, 4nc.15.
The li#elihood of confusion of "oods or business is a relative concept, to be
determined onl accordin" to the particular, and sometimes peculiar,
circumstances of each case.14 6ndeed, in trademar# la) cases, even more than
in other liti"ation, precedent must be studied in the li"ht of the facts of the
particular case.17 Contrar to petitioner?s supposition, the facts of this case
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)ill sho) that the cases of Sta. Ana (s. Mali/at,, An (s. )eodoro and
Con(erse Ruer Corporation (s. ?ni(ersal Ruer Products, 4nc. are hardl
in point. The !ust cited cases involved "oods that )ere confusin"l similar, if
not identical, as in the case of Con(erse Ruer Corporation (s. ?ni(ersal
Ruer Products, 4nc. ere, the products involved are so unrelated that the
public )ill not be misled that there is the sli"htest ne(us bet)een petitioner
and the "oods of private respondent.
6n cases of confusion of business or ori"in, the =uestion that usuall arises is
)hether the respective "oods or services of the senior user and the !unior user
are so related as to li#el cause confusion of business or ori"in, and thereb
render the trademar# or tradenames confusin"l similar .1; Foods are related
)hen the belon" to the same class or have the same descriptive properties>
)hen the possess the same phsical attributes or essential characteristics
)ith reference to their form, composition, te(ture or =ualit.13 The ma also
be related because the serve the same purpose or are sold in "rocer stores.9D
Thus, in +sso Standard +astern, 4nc. (s. Court of Appeals, this Court ruled
that the petroleum products on )hich the petitioner therein used the
trademar# E''%, and the product of respondent, ci"arettes are 0so forei"n to
each other as to ma#e it unli#el that purchasers )ould thin# that petitioner is
the manufacturer of respondent?s "oods091. Moreover, the fact that the "oods
involved therein flo) throu"h different channels of trade hi"hli"hted their
dissimilarit, a factor e(plained in this )ise/
0The products of each part move alon" and are disposed throu"h
different channels of distribution. The petitioner?s products aredistributed principall throu"h "asoline service and lubrication
stations, automotive shops and hard)are stores. %n the other hand,
the respondent?s ci"arettes are sold in sari-sari stores, "rocer store,
and other small distributor outlets. Respondnet?s ci"arettes are even
peddled in the streets )hile petitioner?s ?"asul? burners are not.
@inall, there is a mar#ed distinction bet)een oil and tobacco, as
)ell as bet)een petroleum and ci"arettes. Evidentl, in #ind and
nature the products of respondent and of petitioner are poles
apart.099
&ndoubtedl, the paints, chemical products, toner and destuff of petitioner
that carr the trademar# CAN%N are unrelated to sandals, the product of
private respondent. e a"ree )ith the BPTTT, follo)in" the Esso doctrine,
)hen it noted that the t)o classes of products in this case flo) throu"h
different trade channels. The products of petitioner are sold throu"h special
chemical stores or distributors )hile the products of private respondent are
sold in "rocer stores, sari-sari stores and department stores.9: Thus, the
evident disparit of the products of the parties in the case at bar renders
unfounded the apprehension of petitioner that confusion of business or ori"in
mi"ht occur if private respondent is allo)ed to use the mar# CAN%N.
6n its bid to bar the re"istration of private respondent of the mar# CAN%N,
petitioner invo#es the protective mantle of the Paris Convention. Petitioner
asserts that it has the e(clusive ri"ht to the mar# CAN%N because it forms
part of its corporate name or tradename, protected b Article ; of the Paris
Convention, to )it/
0A tradename shall be protected in all the countries of the &nion
)ithout the obli"ation of filin" or re"istration, )hether or not it
forms part of a trademar#.0
Public respondents BPTTT and the Court of Appeals alle"edl committed an
oversi"ht )hen the re=uired petitioner to prove that its mar# is a )ell-
#no)n mar# at the time the application of private respondent )as filed.Petitioner =uestions the applicabilit of the "uidelines embodied in the
Memorandum of then Minister of Trade and 6ndustr Roberto %n"pin
%n"pin dated %ctober 95, 13;: )hich accordin" to petitioner implements
Article 4bis of the Paris Convention, the provision referrin" to the protection
of trademar#s. The memorandum reads/
0a the mar# must be internationall #no)n>
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b the sub!ect of the ri"ht must be a trademar#, not a patent or
copri"ht or anthin" else>
c the mar# must be for use in the same or similar class of "oods>
d the person claimin" must be the o)ner of the mar#.0
Accordin" to petitioner, it should not be re=uired to prove that its trademar#is )ell-#no)n and that the products are not similar as re=uired b the =uoted
memorandum. Petitioner emphasi the names or titles la)full
adopted and used b natural or !uridical persons, unions, and an
manufacturin", industrial, commercial, a"ricultural or other or"ani
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The Convention of Paris for the Protection of 6ndustrial Propert, other)ise
#no)n as the Paris Convention, of )hich both the Philippines and 8apan, the
countr of petitioner, are si"natories93, is a multilateral treat that see#s to
protect industrial propert consistin" of patents, utilit models, industrial
desi"ns, trademar#s, service mar#s, trade names and indications of source or
appellations of ori"in, and at the same time aims to repress unfair
competition.:D e a"ree )ith public respondents that the controllin" doctrine
)ith respect to the applicabilit of Article ; of the Paris Convention is that
established in @aushi @aisha 4setan (s. 4ntermediate Appellate Court.:1 As
pointed out b the BPTTT/
0Re"ardin" the applicabilit of Article ; of the Paris Convention, this
%ffice believes that there is no automatic protection afforded an
entit )hose tradename is alle"ed to have been infrin"ed throu"h the
use of that name as a trademar# b a local entit.
6n Iabushi#i Iaisha 6setan vs. The 6ntermediate Appellate Court, et.
al., F.R. No. 7529D, 15 November 1331, the onorable 'upreme
Court held that/
?The Paris Convention for the Protection of 6ndustrial
Propert does not automaticall e(clude all countries of the
)orld )hich have si"ned it from usin" a tradename )hich
happens to be used in one countr. To illustrate if a ta(icab
or bus compan in a to)n in the &nited Iin"dom or 6ndia
happens to use the tradename 0Rapid Transportation0, it does
not necessaril follo) that 0Rapid0 can no lon"er bere"istered in &"anda, @i!i, or the Philippines.
This office is not unmindful that in the Treat of Paris for the
Protection of 6ntellectual Propert re"ardin" )ell-#no)n mar#s and
possible application thereof in this case. Petitioner, as this office sees
it, is trin" to see# refu"e under its protective mantle, claimin" that
the sub!ect mar# is )ell #no)n in this countr at the time the then
application of N'R Rubber )as filed.
o)ever, the then Minister of Trade and 6ndustr, the on. Roberto
. %n"pin, issued a memorandum dated 95 %ctober 13;: to the
+irector of Patents, a set of "uidelines in the implementation of
Article 4bis sic of the Treat of Paris. These conditions are/
a the mar# must be internationall #no)n>
b the sub!ect of the ri"ht must be a trademar#, not a patentor copri"ht or anthin" else>
c the mar# must be for use in the same or similar #inds of
"oods> and
d the person claimin" must be the o)ner of the mar# The
Parties Convention Commentar on the Paris Convention.
Article b +r. Bo"sch, +irector Feneral of the orld
6ntellectual Propert %r"ani
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in the case of @aushi @aisha 4setan (s. 4ntermediate Appellate Court that
Article ; of the Paris Convention does not automaticall e(tend protection to
a tradename that is in dan"er of bein" infrin"ed in a countr that is also a
si"nator to said treat. This contention deserves scant consideration. 'uffice
it to sa that the !ust =uoted pronouncement in the case of @aushi @aisha
4setan (s. 4ntermediate Appellate Court, )as made independent of the factual
findin" that petitioner in said case had not conducted its business in this
countr.
6HERE!ORE, in vie) of the fore"oin", the instant petition for revie) on
certiorari is +EN6E+ for lac# of merit.
'% %R+ERE+.
Republic of the Philippines
'&PREME C%&RT
Manila
T6R+ +66'6%N
F.R. No. 135415 April 91, 9D12
BANI %@ C%MMERCE, Petitioner,
vs.
RA+6% P6$6PP6NE' NET%RI, 6NC., 6NTERC%NT6NENTA$
BR%A+CA'T6NF C%RP%RAT6%N, and BANAA BR%A+CA'T6NF
C%RP%RAT6%N, TR& B%AR+ %@ A+M6N6'TRAT%R, and 'ER6@@
B6ENEN6+% '. REGE', 8R., 'heriff, Re"ional Trial Court of Jue
sub!ect to inclusion of the follo)in" provision in the P A/
17
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The parties to the P A had considered other potential liabilities a"ainst
TRB, and to address these claims, the parties have a"reed to set up an escro)
fund amountin" to @ift Million Pesos P5D,DDD,DDD.DD in cash to be
invested in "overnment securities to ans)er for an such claim that shall be
!udiciall established, )hich fund shall be #ept for 15 ears in the trust
department of an other ban# acceptable to the B'P. An deviation therefrom
shall re=uire prior approval from the Monetar Board.
( ( ( (
@ollo)in" the above approval, on November 3, 9DD1 Bancommerce entered
into a P A A"reement )ith TRB and ac=uired its specified assets and
liabilities, e(cludin" liabilities arisin" from !udicial actions )hich )ere to be
covered b the B'P-mandated escro) of P5D million.
To compl )ith the B'P mandate, on +ecember 4, 9DD1 TRB placed P5D
million in escro) )ith Metropolitan Ban# and Trust Co. Metroban# to
ans)er for those claims and liabilities that )ere e(cluded from the P A
A"reement and remained )ith TRB. Accordin"l, the B'P finall approved
such a"reement on 8ul :, 9DD9.
'hortl after or on %ctober 1D, 9DD9, actin" in F.R. 1:;51D, Traders Roal
Ban# v. Radio Philippines Net)or# RPN, 6nc., this Court ordered TRB to
pa respondents RPN, 6ntercontinental Broadcastin" Corporation, and
Banaha) Broadcastin" Corporation collectivel, RPN, et al. actual
dama"es of P3,73D,714.;7 plus 19L le"al interest and some amounts. Based
on this decision, RPN, et al.filed a motion for e(ecution a"ainst TRB before
the Re"ional Trial Court RTC of Jue
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e are not prepared thou"h, unli#e the respondent 8ud"e, to declare the P'A
bet)een TRB and BANC%M as a farce or 0a mere tool to effectuate a mer"er
andKor consolidation0 of the parties to the P'A. There is !ust a dearth of
conclusive evidence to support such a findin", at least at this point.
Conse=uentl, the statement in the dispositive portion of the assailed Au"ust
15, 9DD5 %rder referrin" to a mer"erKconsolidation bet)een TRB and
BANC%M is deleted.4
( ( ( (
ERE@%RE, the herein consolidated Petitions are +EN6E+. The assailed
%rders dated Au"ust 15, 9DD5 and @ebruar 99, 9DD4 of the respondent
8ud"e, are A@@6RME+ )ith the M%+6@6CAT6%N that the pronouncement of
respondent 8ud"e in the Au"ust 15, 9DD5 %rder that the P'A bet)een TRB
and BANC%M is a farce or 0a mere tool to effectuate a mer"er andKor
consolidation bet)een TRB and BANC%M0 is +E$ETE+.
'% %R+ERE+.7
%n 8anuar ;, 9D1D RPN, et al. filed )ith the RTC a motion to cause the
issuance of an alias )rit of e(ecution a"ainst Bancommerce based on the CA
+ecision. The RTC "ranted; the motion on @ebruar 13, 9D1D on the premise
that the CA +ecision allo)ed it to e(ecute on the assets that Bancommerce
ac=uired from TRB under their P A A"reement.
%n March 1D, 9D1D Bancommerce sou"ht reconsideration of the RTC %rder
considerin" that the +ecember ;,9DD3 CA +ecision actuall declared that no
mer"er e(isted bet)een TRB and Bancommerce. But, since the RTC had
alread issued the alias )rit on March 3, 9D1D Bancommerce filed on March
14, 9D1D a motion to =uash the same, follo)ed b supplemental Motion3 on
April 93, 9D1D.
%n Au"ust 1;, 9D1D the RTC issued the assailed %rder1D denin"
Bancommerce pleas and, amon" others, directin" the release to the 'heriff of
BancommerceOs 0"arnished monies and shares of stoc# or their monetar
e=uivalent0 and for the sheriff to pa 95L of the amount 0to the respondentsO
counsel representin" his attorneOs fees and P9DD,DDD.DD representin" his
appearance fees and liti"ation e(penses0 and the balance to be paid to the
respondents after deductin" court dues.
A""rieved, Bancommerce immediatel elevated the RTC %rder to the CA via
a petition for certiorari under Rule 45 to assail the %rders dated @ebruar 13,
9D1D and Au"ust 1;, 9D1D. %n November 94, 9D1D the CA11 dismissed the
petition outri"ht for the supposed failure of Bancommerce to file a motion
for reconsideration of the assailed order. The CA denied BancommerceOs
motion for reconsideration on @ebruar 3, 9D11, promptin" it to come to this
Court.
The issues this case presents are/
1. hether or not the CA "ravel erred in holdin" that Bancommerce had no
valid e(cuse in failin" to file the re=uired motion for reconsideration of the
assailed RTC %rder before comin" to the CA> and
9. hether or not the CA "ravel erred in failin" to rule that the RTCOs %rder
of e(ecution a"ainst Bancommerce )as a nullit because the CA +ecision of
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+ecember ;, 9DD3 in CA-F.R. 'P 3195; held that TRB had not been mer"ed
into Bancommerce as to ma#e the latter liable for TRBOs !ud"ment debts.
+irect filin" of the petition for
certiorari b Bancommerce
'ection 1, Rule 45 of the Rules of Court provides that a petition for certiorari
ma onl be filed )hen there is no plain, speed, and ade=uate remed in the
course of la). 'ince a motion for reconsideration is "enerall re"arded as a
plain, speed, and ade=uate remed, the failure to first ta#e recourse to is
usuall re"arded as fatal omission.
But Bancommerce invo#ed certain reco"ni and d the issues raised )ere purel of la).
6n this case, the records ampl sho) that BancommerceOs action fell )ithin
the reco"ni
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Mer"er is a re-or"ani
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an plan or articles of mer"er or consolidation. More importantl, the 'EC
did not issue an certificate of mer"er or consolidation.
The dissentin" opinion of 8ustice Mendo
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The Bureau of 6nternal Revenue B6R treated the transaction bet)een the
t)o ban#s purel as a sale of specified assets and liabilities )hen it rendered
its opinion99 on the ta( conse=uences of the transaction "iven that there is a
difference in ta( treatment bet)een a sale and a mer"er or consolidation.
6ndubitabl, since the transaction bet)een TRB and Bancommerce )as
neither a mer"er nor a de facto mer"er but a mere 0sale of assets )ith
assumption of liabilities,0 the ne(t =uestion before the Court is )hether or
not the RTC could re"ard Bancommerce as RPN, et al.Os !ud"ment debtor.
6t is pointed out that under common la),9: if one corporation sells or
other)ise transfers all its assets to another corporation, the latter is not liable
for the debts and liabilities of the transferor if it has acted in "ood faith and
has paid ade=uate consideration for the assets, e(cept/ 1 )here the
purchaser e(pressl or impliedl a"rees to assume such debts> 9 )here the
transaction amounts to a consolidation or mer"er of the corporations> :
)here the purchasin" corporation is merel a continuation of the sellin"
corporation> and 2 )here the transaction is entered into fraudulentl in
order to escape liabilit for such debts.92
But, in the first place, common la) has no application in this !urisdiction
)here e(istin" statutes "overnin" the situation are in place. 'econdl, none
of the cited e(ceptions appl to this case.
1. Bancommerce a"reed to assume those liabilities of TRB that are specified
in their P A A"reement. That a"reement specificall e(cluded TRBOs
contin"ent liabilities that the latter mi"ht have arisin" from pendin"
liti"ations in court, includin" the claims of respondent RPN, et al.
The pertinent provision of the P A provides/
Article 66
C%N'6+ERAT6%N/ A''&MPT6%N %@ $6AB6$6T6E'
6n consideration of the sale of identified recorded assets and properties
covered b this A"reement, BANC%MMERCE shall assume identified
recorded TRBOs liabilities includin" boo#ed contin"ent liabilities as listed
and referred to in its Consolidated 'tatement of Condition as of Au"ust :1,
9DD1, in the total amount of PE'%'/ TEN B6$$6%N @%&R &N+RE+
%NE M6$$6%N @%&R &N+RE+ T6RTG '6 T%&'AN+
P1D,21D,2:4,DDD.DD, provided that the liabilities so assumed shall not
include/
( ( ( (
9. 6tems in liti"ation, both actual and prospective, a"ainst TRB )hich
include but not limited to the follo)in"/
9.1 Claims of su"ar planters for alle"ed under valuation of su"ar e(port
sales ( ( (>
9.9 Claims of the Republic of the Philippines for peso-denominated
certificates supposed to have been placed b the Marcos famil )ith TRB>
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9.: %ther liabilities not included in said Consolidated 'tatement of
Condition> and
9.2 $iabilities accruin" after the effectivit date of this A"reement that
)ere not incurred in the ordinar course of business.95 &nderscorin"
supplied
9. As alread pointed out above, the sale did not amount to mer"er or de
facto mer"er of Bancommerce and TRB since the elements re=uired of both
)ere not present.
:. The evidence in this case fails to sho) that Bancommerce )as a mere
continuation of TRB. TRB retained its separate and distinct identit after the purchase. Althou"h it subse=uentl chan"ed its name to Traders Roal
oldin"Os, 6nc. such chan"e did not result in its dissolution. 0The chan"in" of
the name of a corporation is no more than creation of a corporation than the
chan"in" of the name of a natural person is the be"ettin" of a natural person.
The act, in both cases, )ould seem to be )hat the lan"ua"e )hich )e use to
desi"nate it importsa chan"e of name and not a chan"e of bein".094 As
such, Bancommerce and TRB remained separate corporations.
2. To protect contin"ent claims, the B'P directed Bancommerce and TRB
to put up P5D million in escro) )ith another ban#. 6t )as the B'P, not
Bancommerce that fi(ed the amount of the escro). Conse=uentl, it cannot
be said that the latter ban# acted in bad faith )ith respect to the e(cluded
liabilities. The did not enter into the P A A"reement to enable TRB to
escape from its liabilit to creditors )ith pendin" court cases.
@urther, even )ithout the escro), TRB continued to be liable to its creditors
althou"h under its ne) name. Parentheticall, the P A A"reement sho)s
that Bancommerce ac=uired "reater amount of TRB liabilities than assets.
Article 66 of the P A A"reement sho)s that Bancommerce assumed total
liabilities of P1D,2D1,2:4,DDD.DD )hile it received total assets of onl
P1D,949,152,DDD.DD. This proves the arms len"th =ualit of the transaction.
The dissentin" opinion of 8ustice Mendo
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6t is thus clear that the phrase 0no) #no)n as Ban# of Commerce0 used in
the petition served onl to indicate that Bancommerce is no) the former
propert o)nerOs creditor that filed the petition for )rit of possession as a
result of the P A A"reement. 6t does not indicate a mer"er.
$astl, the dissentin" opinion of 8ustice Mendo
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5; referrin" to the aforementioned transaction bet)een TRB and
Bancommerce as a purchase and assumption a"reement.0:9
'ince there had been no mer"er, Bancommerce cannot be considered as
TRBOs successor-in-interest and a"ainst )hich the CourtOs +ecision of
%ctober 1D, 9DD9 in F.R. 1:;51D ma been forced. Bancommerce did not
hold the former TRBs assets in trust for it as to sub!ect them to "arnishment
for the satisfaction of the latterOs liabilities to RPN, et al. Bancommerce
bou"ht and ac=uired those assets and thus, became their absolute o)ner.
The CA +ecision in
CA-F.R. 'P 3195;
Accordin" to the dissentin" opinion of 8ustice Mendo
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ERE@%RE, the petition is FRANTE+. The assailed Resolution of
November 94, 9D1D and the Resolution of @ebruar 3, 9D11 of the Court of
Appeals both in CA-F.R. 'P 1147D2 are REER'E+ and 'ET A'6+E.
Accordin"l, the assailed %rders dated @ebruar 13, 9D1D and Au"ust 1;,
9D1D, the Alias rit of E(ecution dated March 3, 9D1D, all issued b the
Re"ional Trial Court and all orders, notices of "arnishmentKlev, or notices of
sale and an other action emanatin" from the %rders dated @ebruar 13, 9D1D
and Au"ust 1;, 9D1D in Civil Case J-;3-:5;D are ANN&$$E+ and 'ET
A'6+E. The Temporar Restrainin" %rder issued b this Court on April 1:,
9D11 is hereb made PERMANENT.
'% %R+ERE+.
Patents
Republic of the Philippines
SUPREME COURT
Manila
T6R+ +66'6%N
G.R. No. 188#2$ No++r 11, 2'1"
CENTUR CHINESE MEICINE CO., MING SENG CHINESE
RUGSTORE, :IANG JIAN CHINESE RUG STORE, TE/
SAN CHINESE RUG STORE, SIM SIM CHINESE RUG
STORE, AN SHIONG TA CHINESE RUG STORE ()*;or
6ILCENO TAN MENE3, SHUANG ING CHINESE
RUGSTORE, ()* ACLARAN CHINESE RUG STORE,
Petitioners,
vs.
PEOPLE O! THE PHILIPPINES ()* LING NA LAU,
Respondents.
+ E C 6 ' 6 % N
PERALTA, J.:
Before us is a petition for revie) on certiorari )hich see#s to reverse
and set aside the +ecision1 dated March :1, 9DD3 of the Court of
Appeals in CA-F.R. C No. ;;359 and the Resolution9 dated 8ul 9,
9DD3, )hich denied reconsideration thereof. The CA reversed the
%rder : dated 'eptember 95, 9DD4 of the Re"ional Trial Court RTC,
Branch 12:, Ma#ati Cit, =uashin" 'earch arrants Nos. D5-D:D, D5-
D::, D5-D:;, D5-D99, D5-D9:, D5-D95, D5-D29 and D5-D2:, and the
%rder 2 dated March 7, 9DD7 denin" reconsideration thereof.
The antecedent facts are as follo)s/
Respondent $in" Na $au, doin" business under the name and stle
orld)ide Pharmac,5 is the sole distributor and re"istered trademar#
o)ner of T%P FE$ T.F. +E6CE %@ A $EA@ papaa )hitenin"
soap as sho)n b Certificate of Re"istration 2-9DDD-DD3;;1 issued to
her b the 6ntellectual Propert %ffice 6P% for a period of ten ears
from Au"ust 92, 9DD:.4 %n November 7, 9DD5, her representative,
Pin" Na $au, Pin" )rote a letter 7 addressed to National Bureau of6nvesti"ation NB6 +irector Renaldo coco, throu"h Att. 8ose
8usto Gap and A"ent 8oseph F. @urin" A"ent @urin", re=uestin"
assistance for an investi"ation on several dru"stores )hich )ere
sellin" counterfeit )hitenin" papaa soaps bearin" the "eneral
appearance of their products.
27
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A"ent @urin" )as assi"ned to the case and he e(ecuted an affidavit;
statin" that/ he conducted his o)n investi"ation, and on November 3
and 1D, 9DD5, he, to"ether )ith 8unad Esmael Esmael, )ere able to
bu )hitenin" soaps bearin" the trademar# 0T%P-FE$0, 0T.F.0
0+E6CE %@ A $EA@0 )ith correspondin" receipts from a list of
dru"stores )hich included herein petitioners Centur Chinese
Medicine Co., Min 'en" Chinese +ru"store, ian" 8ian" Chinese+ru" 'tore, Te# 'an Chinese +ru" 'tore, 'im 'im Chinese +ru"
'tore, Ban 'hion" Ta +ru"store, 'huan" Gin" Chinese +ru"store,
and Baclaran Chinese +ru" 'tore> )hile conductin" the investi"ation
and test bus, he )as able to confirm Pin"?s complaint to be true as he
personall sa) commercial =uantities of )hitenin" soap bearin" the
said trademar#s bein" displaed and offered for sale at the said
dru"stores> he and Esmael too# the purchased items to the NB6, and
Pin", as the authori that Gu is not a
part- respondent in these cases and the pendenc of the civil case
filed b him is immaterial and irrelevant> and that Gu cannot be
considered the sole o)ner and distributor of 0T%P FE$ T.F.
+E6CE %@ A [email protected] The motion )as then submitted for resolution28
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in an %rder dated 8anuar :D, 9DD4. +urin" the pendenc of the case,
respondent, on April 9D, 9DD4, filed a 'ubmission15 in relation to the
Motion to Juash attachin" an %rder 14 dated March 91, 9DD4 of the
6P% in 6P Case No. 1D-9DD5-DDDD1 filed b respondent a"ainst Gu,
doin" business under the name and stle of MCA Manufacturin" and
eidi '. Cua, proprietor of 'outh %cean Chinese +ru" 'tores for
trademar# infrin"ement andKor unfair competition and dama"es )ith praer for preliminar in!unction. The %rder approved therein the
parties? 8oint Motion To Approve Compromise A"reement filed on
March ;, 9DD4. e =uote in its entiret the %rder as follo)s/
The Compromise A"reement bet)een the herein complainant and
respondents provides as follo)s/
1. Respondents ac#no)led"e the e(clusive ri"ht of
Complainant over the trademar# T%P FE$ T.F. +E6CE%@ A $EA@ for use on papaa )hitenin" soap as re"istered
under Re"istration No. 2-9DDD-DD3;;1 issued on Au"ust 92,
9DD:.
9. Respondents ac#no)led"e the appointment b Henna
Chemical 6ndustr Co., $td. of Complainant as the e(clusive
Philippine distributor of its products under the tradename and
trademar# T%P FE$ MCA MCA +E6CE A 'J&ARE
+E6CE C%N'6'T6NF %@ A 'TG$6HE+REPRE'ENTAT6%N %@ A $ETTER 0M0 6''&E+ 0 %ER
TE $ETTER 0CA0 as re"istered under Re"istration No. 2-
1334-1D3357 issued on November 17, 9DDD, as )ell as the
assi"nment b Henna Chemical 6ndustr Co., $td. to
Complainant of said mar# for use on papaa )hitenin" soap.
:. Respondents admit havin" used the tradename and
trademar# aforesaid but after havin" reali
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7. The Parties hereb a"ree to submit this Compromise
A"reement for Approval of this %ffice and pra for issuance of
a decision on the basis thereof.
@indin" the Compromise A"reement to have been dul e(ecuted and
si"ned b the parties andKor their representativesKcounsels and the
terms and conditions thereof to be in conformit )ith the la), morals,
"ood customs, public order and public polic, the same is hereb
APPR%E+. Accordin"l, the above-entitled case is +6'M6''E+ as
all issues raised concernin" herein parties have been rendered M%%T
AN+ ACA+EM6C.
'% %R+ERE+.17
%n 'eptember 95, 9DD4, the RTC issued its %rder 1; sustainin" the
Motion to Juash the 'earch arrants, the dispositive portion of )hich
reads as follo)s/
ERE@%RE, findin" that the issuance of the =uestioned search
)arrants )ere not supported b probable cause, the Motion to Juash is
FRANTE+. 'earch )arrants nos. D5-D:D, D5-D::, D5-D:;, D5-D99, D5-
D9:, D5-D95, D5-D29, D5-D2: are ordered lifted and recalled.
The NB6 %fficers )ho effected the search )arrants are hereb ordered
to return the sei
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Respondent then filed her appeal )ith the CA. After respondent filed
her appellant?s brief and petitioners their appellee?s brief, the case )as
submitted for decision.
%n March :1, 9DD3, the CA rendered its assailed +ecision, the
dispositive portion of )hich reads/
ERE@%RE, in vie) of the fore"oin" premises, !ud"ment is hereb
rendered b us FRANT6NF the appeal filed in this case and
'ETT6NF A'6+E the %rder dated March 7, 9DD7 issued b Branch
12: of the Re"ional Trial Court of the National Capital 8udicial Re"ion
stationed in Ma#ati Cit in the case involvin" 'earch arrants Nos.
D5-D:D, D5-D::, D5-D:;, D5-D99, D5-D9:, D5-D95, D5-D29, D5-D2:.9:
6n reversin" the RTC?s =uashal of the search )arrants, the CA found
that the search )arrants )ere applied for and issued for violations of
'ections 155 and 14;, in relation to 'ection 17D, of the 6ntellectual
Propert Code and that the applications for the search )arrants )ere in
anticipation of criminal actions )hich are to be instituted a"ainst
petitioners> thus, Rule 194 of the Rules of Criminal Procedure )as
applicable. 6t also ruled that the basis for the applications for issuance
of the search )arrants on "rounds of trademar#s infrin"ement and
unfair competition )as the trademar# T%P FE$ T.F. +E6CE %@
A $EA@> that respondent )as the re"istered o)ner of the said
trademar#, )hich "ave her the ri"ht to enforce and protect herintellectual propert ri"hts over it b see#in" assistance from the NB6.
The CA did not a"ree )ith the RTC that there e(isted a pre!udicial
=uestion, since Civil Case No. D5-52727 )as alread dismissed on
8une 1D, 9DD5, i.e., lon" before the search )arrants sub!ect of this
appeal )ere applied for> and that Gu?s motion for reconsideration )as
denied on 'eptember 15, 9DD5 )ith no appeal havin" been filed
thereon as evidenced b the Certificate of @inalit issued b the said
court.
Petitioners? motion for reconsideration )as denied b the CA in a
Resolution dated 8ul 9, 9DD3. ence, this petition filed b petitioners
raisin" the issue that/
A TE C%&RT %@ APPEA$' ERRE+ AN+ FRAE$G
AB&'E+ 6T' +6'CRET6%N 6N REER'6NF TE
@6N+6NF' %@ TE REF6%NA$ TR6A$ C%&RT AN+
E$+ TAT TE $ATTER APP$6E+ TE R&$E' %N'EARC AN+ 'E6H&RE 6N C66$ ACT6%N' @%R
6N@R6NFEMENT %@ 6NTE$$ECT&A$ PR%PERTG
R6FT'.92
B TE C%&RT %@ APPEA$' ERRE+ AN+ FRAE$G
AB&'E+ 6T' +6'CRET6%N EN 6T BA'E+ 6T'
R&$6NF %N TE ARF&MENT 6C A' BR%&FT
&P @%R TE @6R'T T6ME 6N RE'P%N+ENT $6NF NA
$A&?' APPE$$ANT?' [email protected]
Petitioners contend that the products sei
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RTC?s order to release the sei that one or t)o samples from each petitionerOs? dru"store
)ould have sufficed in case there is a need to present them in a
criminal prosecution, and that confiscation of thousands of these
products )as an over#ill.
Petitioners also ar"ue that the issue that the RTC erred in applin" the
rules on search and sei )hile 'ection 14;, in relation
to 'ection 17D, penali
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Thus, )e a"ree )ith the CA that A.M. No. D9-1-D4-'C, )hich
provides for the Rules on the 6ssuance of the 'earch and 'ei
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The RTC =uashed the search )arrants, sain" that 1 there e(ists a
pre!udicial =uestion pendin" before Branch 3: of the RTC of Jue and there )as also a case for trademar#
infrin"ement andKor unfair competition filed b respondent a"ainst Gu pendin" before the 6P%, doc#eted as 6P Case No. 1D-9DD5-DDDD1>
and 9 Gu?s representation that he is the sole distributor of the Top Fel
)hitenin" soap, as the latter even presented Re"istration No. 2-1334-
1D3357 issued b the 6P% to Henna Chemical 6ndustr as the
re"istered o)ner of the trademar# T%P FE$ MCA +E6CE MCA
for a term of 9D ears from November 17, 9DDD coverin" the same
product.
e do not a"ree. e affirm the CA?s reversal of the RTC %rder=uashin" the search )arrants.
The affidavits of NB6 A"ent @urin" and his )itnesses, Esmael and
$in", clearl sho)ed that the are see#in" protection for the trademar#
0T%P FE$ T.F. and +E6CE %@ A $EA@0 re"istered to respondent
under Certificate of Re"istration 2-9DDD-DD3;;1 issued b the 6P% on
Au"ust 92, 9DD:, and no other. hile petitioners claim that the product
the are distributin" )as o)ned b Gu )ith the trademar# T%P FE$
MCA and MCA +E6'E under Certificate of Re"istration 2-1334-1D3357, it )as different from the trademar# T%P FE$ T.F. and
+E6CE %@ A $EA@ sub!ect of the application. e a"ree )ith the
CA?s findin" in this )ise/
( ( ( 6t bears stressin" that the basis for the applications for issuances
of the search )arrants on "rounds of trademar# infrin"ement and
unfair competition is the trademar# T%P FE$ T.F. +E6CE %@ A
$EA@. Private complainant-appellant )as issued a Certificate of
Re"istration No. 2-9DDD-DD3;;1 of said trademar# on Au"ust 92, 9DD:
b the 6ntellectual Propert %ffice, and is thus considered the la)ful
holder of the said trademar#. Bein" the re"istrant and the holder of the
same, private complainant-appellant had the authorit to enforce and
protect her intellectual propert ri"hts over it. This prompted her to
re=uest for assistance from the a"ents of the NB6, )ho thereafterconducted a series of investi"ation, test bus and inspection re"ardin"
the alle"ed trademar# infrin"ement b herein respondents-appellees.
'ubse=uentl, Pin" Na $au, private complainant-appellantOs
representative, issued a certification )ith the findin" that the e(amined
"oods )ere counterfeit. This prompted the NB6 a"ents to appl for the
issuances of search )arrants a"ainst the respondents-appellees. 'aid
applications for the search )arrants )ere "ranted after b 8ud"e
$a"uilles after e(aminin" under oath the applicant A"ent @urin" of the
NB6 and his )itnesses Pin" Na $au and 8unad R. 6smael.
Based on the fore"oin", it is clear that the re=uisites for the issuance of
the search )arrants had been complied )ith and that there is probable
cause to believe that an offense had been committed and that the
ob!ects sou"ht in connection )ith the offense )ere in the places to be
searched. The offense pertains to the alle"ed violations committed b
respondents-appellees upon the intellectual propert ri"hts of herein
private complainant-appellant, as holder of the trademar# T%P FE$
T.F. +E6CE %@ A $EA@ under Certificate of Re"istration No. 2-9DDD-DD3;;1, issued on Au"ust 92, 9DD: b the 6ntellectual Propert
%ffice.:1
Notabl, at the time the applications for the issuance of the search
)arrants )ere filed on November 91, 9DD5, as the CA correctl found,
Civil Case No. J-D5-52727, )hich the RTC found to be )here a
pre!udicial =uestion )as raised, )as alread dismissed on 8une 1D,
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9DD5,:9 because of the pendenc of a case involvin" the same issues
and parties before the 6P%. Gu?s motion for reconsideration )as denied
in an %rder :: dated 'eptember 15, 9DD5. 6n fact, a Certificate of
@inalit:2 )as issued b the RTC on 8anuar 2, 9DD7.
Moreover, the 6P% case for trademar# infrin"ement and unfair
competition and dama"es )ith praer for preliminar in!unction filed
b respondent a"ainst Gu and eidi Cua, doc#eted as 6P Case No.
1D-9DD5-DDDD1, )ould not also be a basis for =uashin" the
)arrants.7a((phi7 6n fact, prior to the applications for the issuance of
the assailed search )arrants on November 91, 9DD5, the 6P% had
issued an %rder :5 dated %ctober 9D, 9DD5 "rantin" a )rit of
preliminar in!unction a"ainst Gu and Cua, the dispositive portion of
)hich reads/
ERE@%RE, the R6T %@ PRE$6M6NARG 6N8&NCT6%N ishereb issued a"ainst Respondent, Ben!amin Gu, doin" business under
the name and stle of MCA Manufacturin" and eidi '. Cua,
Proprietor of 'outh %cean Chinese +ru" 'tore, and their a"ents,
representatives, dealers and distributors and all persons actin" in their
behalf, to cease and desist usin" the trademar# 0T%P FE$ T.F.
+E6CE %@ A $EA@0 or an colorable imitation thereof on Papaa
)hitenin" soaps the manufacture, sell, andKor offer for sale, and
other)ise, from pac#in" their Papaa hitenin" 'oaps in bo(es )ith
the same "eneral appearance as those of complainant?s bo(es )ithin a period of N6NETG 3D +AG', effective upon the receipt of
respondent of the cop of the C%MP$6ANCE filed )ith this %ffice b
the Complainant statin" that it has posted a CA' B%N+ in the
amount of %NE &N+RE+ T%&'AN+ PE'%' Php1DD,DDD.DD
to"ether )ith the correspondin" %fficial Receipt Number and date
thereof. Conse=uentl, complainant is directed to inform this %ffice of
actual date of receipt b Respondent of the aforementioned
C%MP$6ANCE.:4
To inform the public of the issuance of the )rit of preliminar
in!unction, respondent?s counsel had the dispositive portion of the
%rder published in The Philippine 'tar ne)spaper on %ctober :D,
9DD5.:7 Thus, it )as clearl stated that Gu, doin" business under the
name and stle of MCA Manufacturin", his a"ents, representatives,
dealers and distributors and all persons actin" in his behalf, )ere to
cease and desist from usin" the trademar# 0T%P FE$ +E6CE %@
A $EA@0 or an colorable imitation thereof on Papaa hitenin"
soaps the manufacture, sell andKor offer for sale. Petitioners, )ho
admitted havin" derived their T%P FE$ products from Gu, are,
therefore, notified of such in!unction and )ere en!oined from sellin"
the same.
Not)ithstandin", at the time of the application of the search )arrants
on November 91, 9DD5, and )hile the in!unction )as in effect,
petitioners )ere still sellin" the alle"ed counterfeit products bearin"
the trademar# T%P FE$ T.F. +E6CE %@ A $EA@. There e(ists a
probable cause for violation of respondent?s intellectual propert
ri"hts, )hich entitles her as the re"istered o)ner of the trademar# T%P
FE$ and +E6CE %@ A $EA@ to be protected b the issuance of the
search )arrants.
More importantl, durin" the pendenc of petitioners? motion to =uash
in the RTC, respondent submitted the %rder dated March ;, 9DD4 of
the 6P% in 6P Case No. 1D-9DD5-DDDD1, )here the )rit of
preliminar in!unction )as earlier issued, approvin" the compromise
a"reement entered into b respondent )ith Gu and Cua )here it )as
stated, amon" others, that/
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1. Respondents ac#no)led"e the e(clusive ri"ht of
Complainant over the trademar# T%P FE$ T.F. +E6CE
%@ A $EA@ for use on papaa )hitenin" soap as re"istered
under Re"istration No. 2-9DDD-DD3;;1 issued on Au"ust 92,
9DD:.
9. Respondents ac#no)led"e the appointment b Henna
Chemical 6ndustr Co., $td. of Complainant as the e(clusive
Philippine distributor of its products under the tradename and
trademar# T%P FE$ MCA MCA +E6CE A 'J&ARE
+E6CE C%N'6'T6NF %@ A 'TG$6HE+
REPRE'ENTAT6%N %@ A $ETTER 0M0 %ER TE
$ETTER 0CA0 as re"istered under Re"istration No 2-1334-
1D3357 issued on November 17, 9DDD, as )ell as the
assi"nment b Henna Chemical 6ndustr Co., $td. to
Complainant of said mar# for use on papaa )hitenin" soap.
:. Respondents admit havin" used the tradename and
trademar# aforesaid, but after havin" reali
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)as re"istered to therein respondentsO names> that it )as the desi"n of
the plastic containerKcase that is alle"ed to have been utili
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)arrants themselves reveal that the same )ere applied for and issued
for violations of 0'ection 155 in relation to 'ection 17D of RA ;93:0
and violations of 0'ection 14; in relation to 'ection 17D of RA ;93:,0
and that a perusal of the records )ould sho) that there is no mention
of a civil action or anticipation thereof, upon )hich the search
)arrants are applied for.
Appellees herein petitioners cannot a"ree )ith the contention of the
appellant.7/phi7 Complainant NB6 A"ent 8oseph F. @urin", )ho
applied for the search )arrants, violated the ver rule on search and
sei
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default on their obli"ations to submit periodic li=uidations of theiroperational e(penses in relation to the revolvin" funds Banda"
provided them. Conse=uentl, Banda" terminated their respective '@A.
A""rieved, petitioners filed a complaint for constructive dismissal,
nonpament of )a"es, incentive pa, 1:th month pa and dama"esa"ainst Banda" )ith the National $abor Relations Commission
N$RC. Petitioners contend that, not)ithstandin" the e(ecution of the'@As, the remained to be Banda"Os emploees, the '@As bein" but a
circumvention of their status as re"ular emploees.
@or its part, Banda" pointed out that petitioners freel resi"ned from
their emploment and decided to avail themselves of the opportunitto be independent entrepreneurs under the franchise scheme that
Banda" had. Thus, no emploeremploee relationship e(isted
bet)een petitioners and Banda".
%n March 12, 9DD: the $abor Arbiter rendered a +ecision, dismissin"the complaint on the "round that no emploeremploee relationship
e(isted bet)een Banda" and petitioners. &pon petitionersO appeal tothe N$RC the latter affirmed on 8une :D, 9DD: the $abor ArbiterOs
+ecision. 6t also denied petitionersO motion for reconsideration.
&ndaunted, petitioners filed a petition for certiorari under Rule 45)ith the Court of Appeals CA ascribin" "rave abuse of discretion.
%n 8ul 93, 9DD5 the CA rendered a +ecision,1 dismissin" the petitionfor lac# of merit. 6t also denied their motion for reconsideration on
@ebruar 7, 9DD4.
I%+ o >+ C(+
The onl issue presented in this case is )hether or not petitioners
remained to be Banda"Os salesmen under the franchise scheme itentered into )ith them.
R%li) o >+ Co%r
@ranchisin" is a business method of e(pansion that allo)s an
individual or "roup of individuals to mar#et a product or a