12. tanduay distillers. inc., vs genebra san miguel, inc., g. r. nr. 164324 august 14, 2009

7/21/2019 12. Tanduay Distillers. Inc., Vs Genebra San Miguel, Inc., g. r. Nr. 164324 August 14, 2009

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FIRST DIVISION

TANDUAY DISTILLERS, INC.,Petitioner,

- versus -

GINEBRA SAN MIGUEL, INC.,

RESPONDENT.

G.R. NO. 164!4

PRESENT:

PUNO, C.J., CHAIRPERSON,

CARPIO,

CORONA,

LEONARDO-DE CASTRO,

AND

BERSAMIN, JJ.

PROMULGATED:

AUGUST 14, !""#

X - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - X

D E C I S I O N

CARPIO, J.$

T%e C&'e

TANDUAY DISTILLERS, INC. (TANDUAY) ILED THIS PETITION OR

RE!IE" ON CERTIORARI#$% ASSAILING THE COURT O APPEALS

DECISION DATED & 'ANUARY *#% AS "ELL AS THE RESOLUTION

DATED 'ULY *#+% IN CA-G.R. SP NO. & DENYING THE MOTION

OR RECONSIDERATION. IN THE ASSAILED DECISION, THE COURT O

APPEALS (CA) AIRMED THE REGIONAL TRIAL COURTSORDERS#*%DATED + SEPTEMBER + AND $ OCTOBER + "HICH

RESPECTI!ELY GRANTED GINEBRA SAN MIGUEL, INC.S (SAN MIGUEL)

PRAYER OR THE ISSUANCE O A TEMPORARY RESTRAINING ORDER

(TRO) AND "RIT O PRELIMINARY IN'UNCTION. THE REGIONAL TRIAL

COURT O MANDALUYONG CITY, BRANCH $* (TRIAL COURT),

EN'OINED TANDUAY ROM COMMITTING THE ACTS COMPLAINED O,

http://sc.judiciary.gov.ph/jurisprudence/2009/august2009/164324.htm#_ftn1










AND, SPECIICALLY, TO CEASE AND DESIST ROM MANUACTURING,

DISTRIBUTING, SELLING, OERING OR SALE, AD!ERTISING, OR

OTHER"ISE USING IN COMMERCE THE MAR/ GINEBRA, AND

MANUACTURING, PRODUCING, DISTRIBUTING, OR OTHER"ISE

DEALING IN GIN PRODUCTS "HICH HA!E THE GENERAL

APPEARANCE O, AND "HICH ARE CONUSINGLY SIMILAR "ITH, SAN

MIGUELS MAR/S, BOTTLE DESIGN, AND LABEL OR ITS GIN

PRODUCTS.#%

T(E FACTS

T012u03, 0 45r65r07851 5r9018e2 012 e;8s7819 u12er P<8=86681e =0>s, <0s ?ee1

e1909e2 81 7<e =8@u5r ?us81ess s814e $*. I1 , T012u03 2eve=56e2 0 1e> 981 6r52u47 28s7819u8s<e2 ?3 87s s>ee7 se==, s557< 70s7e, 012 05r20?=e 6r84e.

T012u03 4=08s 7<07 87 e1909e2 7<e serv84es 5 01 02ver78s819 8r 75 2eve=56 0

?r012 10e 012 0 =0?e= 5r 87s 1e> 981 6r52u47. T<e ?r012 10e eve17u0==3 4<5se1

>0s G81e?r0 /068701 >87< 7<e re6rese1707851 5 0 rev5=u78510r3 Kapitan 51

<5rse?04 0s 7<e 2581017 e07ure 5 87s =0?e=. T012u03 65817s 5u7 7<07 7<e =0?e=

2es891 5 G81e?r0 /068701 81 7ers 5 45=5r s4<ee, s8e 012 0rr019ee17 5 7e;7,

012 57<er =0?e= e07ures >ere 6re48se=3 se=e47e2 75 28s7819u8s< 87 r5 7<e =e02819

981 ?r012 81 7<e P<8=86681e 0re7, G81e?r0 S01 M89ue=. T012u03 0=s5 s707es 7<07

7<e G81e?r0 /068701 ?577=e uses 0 rese0=0?=e 7>8s7 406 75 28s7819u8s< 87 r5

G81e?r0 S01 M89ue= 012 57<er =540= 981 6r52u47s >87< ?577=es ><84< use 7<e 4r5>1

406 5r tansan.#%

ATER ILING THE TRADEMAR/ APPLICATION OR GINEBRA

/APITAN "ITH THE INTELLECTUAL PROPERTY OICE (IPO) AND

ATER SECURING THE APPRO!AL O THE PERMIT TO MANUACTURE

AND SELL GINEBRA /APITAN ROM THE BUREAU O INTERNAL

RE!ENUE, TANDUAY BEGAN SELLING GINEBRA /APITAN IN

NORTHERN AND SOUTHERN LUON AREAS IN MAY +. IN 'UNE +,GINEBRA /APITAN "AS ALSO LAUNCHED IN METRO MANILA. #%

ON $+ AUGUST +, TANDUAY RECEI!ED A LETTER ROM SAN

MIGUELS COUNSEL. THE LETTER INORMED TANDUAY TO

IMMEDIATELY CEASE AND DESIST ROM USING THE MAR/ GINEBRA









AND ROM COMMITTING ACTS THAT !IOLATE SAN MIGUELS

INTELLECTUAL PROPERTY RIGHTS.#%

ON $ AUGUST +, SAN MIGUEL ILED A COMPLAINT OR

TRADEMAR/ INRINGEMENT, UNAIR COMPETITION AND DAMAGES,

"ITH APPLICATIONS OR ISSUANCE O TRO AND "RIT O

PRELIMINARY IN'UNCTION AGAINST TANDUAY BEORE THE

REGIONAL TRIAL COURT O MANDALUYONG. THE CASE "AS

RALED TO BRANCH $* AND DOC/ETED AS IP CASE NO. MC-+-$

AND CI!IL CASE NO. MC-+-+.#&%

ON AND & AUGUST AND * SEPTEMBER +, THE TRIAL COURT

CONDUCTED HEARINGS ON THE TRO. SAN MIGUEL SUBMITTED I!E

AIDA!ITS, BUT ONLY ONE AIANT, MERCEDES ABAD, "AS

PRESENTED OR CROSS-EXAMINATION BECAUSE THE TRIAL COURT

RULED THAT SUCH EXAMINATION "OULD BE INCONSISTENT "ITHTHE SUMMARY NATURE O A TRO HEARING. #$% SAN MIGUEL

SUBMITTED THE OLLO"ING PIECES O E!IDENCE:#$$%

$. A820v87 5 Mer4e2es A?02, Pres82e17 012 M0109819 D8re475r 5

7<e rese0r4< 8r NO Tre12s, I14. (NO Tre12s), 75 6rese17, 0519

57<ers, 0re7 surve3 resu=7s ><84< 6r5ve 7<07 981 2r81ers 0ss54807e

7<e 7er G81e?r0 >87< S01 M89ue=, 012 7<07 7<e 451su819 6u?=84 8s

?e819 8s=e2 7<07 G81e?r0 /068701 8s 0 6r52u47 5 S01 M89ue=F

. MAR/ET SUR!EY RESULTS CONDUCTED BY NO TRENDS TODETERMINE THE BRAND ASSOCIATIONS O THE MAR/ GINEBRA AND

TO PRO!E THAT THE CONSUMING PUBLIC IS CONUSED AS TO THE

MANUACTURER O GINEBRA /APITANF

+. AIDA!IT O RAMON CRU, SAN MIGUELS GROUP PRODUCT

MANAGER, TO PRO!E, AMONG OTHERS, THE PRIOR RIGHT O SAN

MIGUEL TO THE MAR/ GINEBRA AS SHO"N IN !ARIOUS

APPLICATIONS OR, AND REGISTRATIONS O, TRADEMAR/S THAT

CONTAIN THE MAR/ GINEBRA. HIS AIDA!IT INCLUDED

DOCUMENTS SHO"ING THAT THE MAR/ GINEBRA HAS BEEN USEDON SAN MIGUELS GIN PRODUCTS SINCE $+*F

*. AIDA!ITS O LEOPOLDO GUANON, 'R., SAN MIGUELS TRADE

AND PROMO MERCHANDISING HEAD OR NORTH LUON AREA, AND

'UDERIC/ CRESCINI, SAN MIGUELS DISTRICT SALES SUPER!ISOR OR

SOUTH LUON-EAST AREA, TO PRO!E, AMONG OTHERS, THAT

TANDUAYS SALESMEN OR DISTRIBUTORS MISREPRESENT GINEBRA











/APITAN AS SAN MIGUELS PRODUCT AND THAT NUMEROUS

RETAILERS O SAN MIGUELS GIN PRODUCTS ARE CONUSED AS TO

THE MANUACTURER O GINEBRA /APITANF AND

. AIDA!IT O 'OSE REGINALD PASCUAL, SAN MIGUELS DISTRICT

SALES SUPER!ISOR OR THE NORTH-GREATER MANILA AREA, TO

PRO!E, AMONG OTHERS, THAT GIN DRIN/ERS CONUSE SAN MIGUEL

TO BE THE MANUACTURER O GINEBRA /APITAN DUE TO THE USE

O THE DOMINANT EATURE GINEBRA.

T012u03 8=e2 0 M57851 75 S7r8e Ou7 He0rs03 A820v87s 012 Ev82e14e, ><84<

57851 >0s 2e18e2 ?3 7<e 7r80= 45ur7. T012u03 6rese17e2 >871esses ><5 08re2

7<e8r 0820v87s 81 56e1 45ur7, 0s 5==5>s:#$%

$. RAMONCITO BUGIA, GENERAL SER!ICES MANAGER O

TANDUAY. ATTACHED TO HIS AIDA!IT "ERE !ARIOUS

CERTIICATES O REGISTRATION O TRADEMAR/S

CONTAINING THE "ORD GINEBRA OBTAINED BY TANDUAY

AND OTHER LIUOR COMPANIES, TO PRO!E THAT THE

"ORD GINEBRA IS REUIRED TO BE DISCLAIMED BY THE

IPO. THE AIDA!IT ALSO ATTESTED THAT THERE ARE

OTHER LIUOR COMPANIES USING THE "ORD GINEBRA AS

PART O THEIR TRADEMAR/S OR GIN PRODUCTS ASIDE

ROM SAN MIGUEL AND TANDUAY.

. HERBERT ROSALES, !ICE PRESIDENT O '. SALCEDO ANDASSOCIATES, INC., THE AD!ERTISING AND PROMOTIONS COMPANY

HIRED BY TANDUAY TO DESIGN THE LABEL O GINEBRA /APITAN.

HIS AIDA!IT ATTESTED THAT THE LABEL "AS DESIGNED TO MA/E

IT LOO/ ABSOLUTELY DIERENT ROM THE GINEBRA SAN MIGUEL

LABEL.

ON + SEPTEMBER +, THE TRIAL COURT ISSUED A TRO

PROHIBITING TANDUAY ROM MANUACTURING, SELLING AND

AD!ERTISING GINEBRA /APITAN.

#$+%

THE DISPOSITI!E PORTIONREADS IN PART:

"HEREORE, 7<e 066=8407851 5r 7e65r0r3 res7r081819 5r2er 8s <ere?3

GRANTED 012 02e ee478ve 8e2807e=3. P=08178 8s 28re47e2 75 65s7 0 ?512 5

ONE MILLION PESOS (P<6 $,,.) >87<81 8ve () 203s r5 8ssu014e<ere5, 57<er>8se, 7<8s res7r081819 5r2er s<0== =5se 87s e84043. A445r2819=3,

2ee12017 T012u03 D8s78==ers, I14., 012 0== 6ers51s 012 09e17s 047819 5r 012 81







?e<0= 0re e1581e2 75 4e0se 012 2es8s7 r5 01u047ur819, 28s7r8?u7819, se==819,

5er819 5r s0=e 0125r 02ver78s819 5r 57<er>8se us819 81 45er4e 7<e 0r

GINEBRA /APITAN ><84< e6=53s, 7<ere51, 5r 81 7<e >r066819s, su12r3 87es,40r751s 012 60409es 7<ere5, 7<e 0r GINEBRA 0s >e== 0s r5 us819 7<e ?577=e

2es891 012 =0?e=s 5r 87s 981 6r52u47s 2ur819 7<e ee478v873 5 7<8s 7e65r0r3

res7r081819 5r2er u1=ess 0 4517r0r3 5r2er 8s 8ssue2 ?3 7<8s C5ur7.#$*%

O1 + O475?er +, T012u03 8=e2 0 6e787851 5r 4er785r0r8 >87< 7<e CA. #$% Des687e

T012u03s Ur9e17 M57851 75 Deer I1u147851 He0r819, 7<e 7r80= 45ur7 451781ue2 75

4512u47 <e0r819s 51 , &, $+ 012 $* O475?er + 5r T012u03 75 s<5> 40use ><3

15 >r87 5 6re=8810r3 81u147851 s<5u=2 ?e 8ssue2. #$% O1 $ O475?er +, 7<e 7r80=

45ur7 9r017e2 S01 M89ue=s 066=8407851 5r 7<e 8ssu014e 5 0 >r87 5 6re=8810r3

81u147851.#$% T<e 28s65s878ve 65r7851 5 7<e Or2er re02s:

"HEREORE, 7<e 6=08178s 066=8407851 5r 0 >r87 5 6re=8810r3

81u147851 8s GRANTED. U651 6=08178s 8=819 5 01 81u1478ve ?512

e;e4u7e2 75 7<e 2ee12017 81 7<e 05u17 5 P,,.

(T"ENTY MILLION) PESOS, =e7 0 "r87 5 Pre=8810r3 I1u147851

8ssue e1581819 7<e 2ee12017, 87s e6=53ees, 09e17s, re6rese17078ves,

2e0=ers, re708=ers 5r 0ss891s, 012 013 0== 6ers51s 047819 51 87s ?e<0=,

r5 45877819 7<e 047s 456=081e2 5, 012, s6e48840==3, 75 4e0se

012 2es8s7 r5 01u047ur819, 28s7r8?u7819, se==819, 5er819 5r s0=e,

02ver78s819, 5r 57<er>8se us819 81 45er4e 7<e 0r GINEBRA, 01201u047ur819, 6r52u4819, 28s7r8?u7819 5r 57<er>8se 2e0=819 81 981

6r52u47s ><84< <0ve 7<e 9e1er0= 066e0r014e 5, 012 ><84< 0re

451us819=3 s88=0r >87<, 6=08178s 0rs, ?577=e 2es891 012 =0?e= 5r

87s 981 6r52u47s.

SO ORDERED.#$%

O1 O475?er +, T012u03 8=e2 0 su66=ee170= 6e787851 81 7<e CA 0ss08=819 7<e

81u147851 5r2er. O1 $ N5ve?er +, 7<e CA 8ssue2 0 TRO e1581819 7<e 7r80=45ur7 r5 86=ee17819 87s 81u147851 5r2er 012 r5 ur7<er 6r54ee2819 >87< 7<e

40se.#$&% O1 + De4e?er +, 7<e CA 8ssue2 0 res5=u7851 28re47819 7<e 60r78es 75

066e0r 5r 0 <e0r819 51 '01u0r3 * 75 2e7er81e 7<e 1ee2 5r 7<e 8ssu014e 5 0

>r87 5 6re=8810r3 81u147851.#%

















ON & 'ANUARY *, THE CA RENDERED A DECISION DISMISSING

TANDUAYS PETITION AND SUPPLEMENTAL PETITION. ON 'ANUARY

*, TANDUAY MO!ED OR RECONSIDERATION "HICH "AS DENIED

IN A RESOLUTION DATED 'ULY *.#$%

AGGRIE!ED BY THE DECISION DISMISSING THE PETITION AND

SUPPLEMENTAL PETITION AND BY THE RESOLUTION DENYING THE

MOTION OR RECONSIDERATION, TANDUAY ELE!ATED THE CASE

BEORE THIS COURT.

T(E TRIAL COURTS ORDERS

I1 7<e Or2er 207e2 + Se67e?er +, 7<e 7r80= 45ur7 s707e2 7<07 2ur819 7<e

<e0r819s 4512u47e2 51 012 & Au9us7 012 51 * 012 $$ Se67e?er +, 7<e

5==5>819 047s <0ve ?ee1 es70?=8s<e2:

1. S01 M89ue= <0s re98s7ere2 7<e 7r02e0r G81e?r0

S01 M89ue=F

2. THERE IS A CLOSE RESEMBLANCE BET"EEN

GINEBRA SAN MIGUEL AND GINEBRA /APITANF

3. THE CLOSE SIMILARITY BET"EEN GINEBRA SANMIGUEL AND GINEBRA /APITAN MAY GI!E RISE TO

CONUSION O GOODS SINCE SAN MIGUEL AND

TANDUAY ARE COMPETITORS IN THE BUSINESS O

MANUACTURING AND SELLING LIUORSF AND

GINEBRA, "HICH IS A "ELL-/NO"N TRADEMAR/, "AS ADOPTED BY

TANDUAY TO BENEIT ROM THE REPUTATION AND AD!ERTISEMENT

O THE ORIGINATOR O THE MAR/ GINEBRA SAN MIGUEL, AND TO

CON!EY TO THE PUBLIC THE IMPRESSION O SOME SUPPOSED

CONNECTION BET"EEN THE MANUACTURER O THE GIN PRODUCTSOLD UNDER THE NAME GINEBRA SAN MIGUEL AND THE NE" GIN

PRODUCT GINEBRA /APITAN.#%

B0se2 51 7<ese 047s, 7<e 7r80= 45ur7 4514=u2e2 7<07 S01 M89ue= <02 2e51s7r07e2 0

4=e0r, 65s878ve, 012 e;8s7819 r89<7 75 ?e 6r57e47e2 ?3 0 TRO. O7<er>8se, S01 M89ue=







>5u=2 suer 8rre60r0?=e 81ur3 8 81r819ee17 >5u=2 157 ?e e1581e2. He14e, 7<e

7r80= 45ur7 9r017e2 7<e 066=8407851 5r 0 TRO 012 se7 7<e <e0r819 5r 6re=8810r3

81u147851.#+%

IN THE ORDER DATED $ OCTOBER +, THE TRIAL COURT GRANTEDTHE APPLICATION OR A "RIT O PRELIMINARY IN'UNCTION. THE

TRIAL COURT RULED THAT "HILE A CORPORATION ACUIRES A

TRADE NAME OR ITS PRODUCT BY CHOICE, IT SHOULD NOT SELECT

A NAME THAT IS CONUSINGLY SIMILAR TO ANY OTHER NAME

ALREADY PROTECTED BY LA" OR IS PATENTLY DECEPTI!E,

CONUSING, OR CONTRARY TO EXISTING LA".#*%

THE TRIAL COURT POINTED OUT THAT SAN MIGUEL AND ITS

PREDECESSORS HA!E CONTINUOUSLY USED GINEBRA AS THE

DOMINANT EATURE O ITS GIN PRODUCTS SINCE $+*. ON THE

OTHER HAND, TANDUAY ILED ITS TRADEMAR/ APPLICATION ORGINEBRA /APITAN ONLY ON 'ANUARY +. THE TRIAL COURT

DECLARED THAT SAN MIGUEL IS THE PRIOR USER AND REGISTRANT

O GINEBRA "HICH HAS BECOME CLOSELY ASSOCIATED TO ALL O

SAN MIGUELS GIN PRODUCTS, THEREBY GAINING POPULARITY AND

GOOD"ILL ROM SUCH NAME.#%

THE TRIAL COURT NOTED THAT "HILE THE SUB'ECT TRADEMAR/S

ARE NOT IDENTICAL, IT IS OB!IOUSLY CLEAR THAT THE "ORD

GINEBRA IS THE DOMINANT EATURE IN THE TRADEMAR/S. THETRIAL COURT STATED THAT THERE IS A STRONG INDICATION THAT

CONUSION IS LI/ELY TO OCCUR SINCE ONE "OULD INE!ITABLY BE

LED TO CONCLUDE THAT BOTH PRODUCTS ARE AILIATED "ITH

SAN MIGUEL DUE TO THE DISTINCTI!E MAR/ GINEBRA "HICH IS

READILY IDENTIIED "ITH SAN MIGUEL. THE TRIAL COURT

CONCLUDED THAT ORDINARY PURCHASERS "OULD NOT EXAMINE

THE LETTERINGS OR EATURES PRINTED ON THE LABEL BUT "OULD

SIMPLY BE GUIDED BY THE PRESENCE O THE DOMINANT MAR/

GINEBRA. ANY DIERENCE "OULD PALE IN SIGNIICANCE IN THE

ACE O E!IDENT SIMILARITIES IN THE DOMINANT EATURES ANDO!ERALL APPEARANCE O THE PRODUCTS. THE TRIAL COURT

EMPHASIED THAT THE DETERMINATI!E ACTOR "AS "HETHER THE

USE O SUCH MAR/ "OULD LI/ELY CAUSE CONUSION ON THE PART

O THE BUYING PUBLIC, AND NOT "HETHER IT "OULD ACTUALLY

CAUSE CONUSION ON THE PART O THE PURCHASERS. THUS,

TANDUAYS CHOICE O GINEBRA AS PART O THE TRADEMAR/ O









GINEBRA /APITAN TENDED TO SHO" TANDUAYS INTENTION TO RIDE

ON THE POPULARITY AND ESTABLISHED GOOD"ILL O GINEBRA SAN

MIGUEL.#%

THE TRIAL COURT HELD THAT TO CONSTITUTE TRADEMAR/

INRINGEMENT, IT "AS NOT NECESSARY THAT E!ERY "ORD SHOULD

BE APPROPRIATEDF IT "AS SUICIENT THAT ENOUGH BE TA/EN TO

DECEI!E THE PUBLIC IN THE PURCHASE O A PROTECTED ARTICLE. #%

THE TRIAL COURT CONCEDED TO TANDUAYS ASSERTION THAT THE

TERM GINEBRA IS A GENERIC "ORDF HENCE, IT IS NON-REGISTRABLE

BECAUSE GENERIC "ORDS ARE BY LA" REE OR ALL TO USE.

HO"E!ER, THE TRIAL COURT RELIED ON THE PRINCIPLE THAT E!EN

I A "ORD IS INCAPABLE O APPROPRIATION AS A TRADEMAR/, THE

"ORD MAY STILL ACUIRE A PROPRIETARY CONNOTATION THROUGHLONG AND EXCLUSI!E USE BY A BUSINESS ENTITY "ITH REERENCE

TO ITS PRODUCTS. THE PURCHASING PUBLIC "OULD ASSOCIATE THE

"ORD TO THE PRODUCTS O A BUSINESS ENTITY. THE "ORD THUS

ASSOCIATED "OULD BE ENTITLED TO PROTECTION AGAINST

INRINGEMENT AND UNAIR COMPETITION. THE TRIAL COURT HELD

THAT THIS PRINCIPLE COULD BE MADE TO APPLY TO THIS CASE

BECAUSE SAN MIGUEL HAS SHO"N THAT IT HAS ESTABLISHED

GOOD"ILL O CONSIDERABLE !ALUE, SUCH THAT ITS GIN PRODUCTS

HA!E ACUIRED A "ELL-/NO"N REPUTATION AS 'UST GINEBRA. IN

ESSENCE, THE "ORD GINEBRA HAS BECOME A POPULAR BY-"ORDAMONG THE CONSUMERS AND THEY HAD CLOSELY ASSOCIATED IT

"ITH SAN MIGUEL.#%

ON THE OTHER HAND, THE TRIAL COURT HELD THAT TANDUAY

AILED TO SUBSTANTIATE ITS CLAIM AGAINST THE ISSUANCE O THE

IN'UNCTI!E RELIE.#&%

T(E RULING OF T(E COURT OF APPEALS

I1 res5=v819 7<e 6e787851 012 su66=ee170= 6e787851, 7<e CA s707e2 7<07 87 8s451s7r081e2 75 =887 87se= 75 7<e 2e7er8107851 5 ><e7<er 7<e TRO 012 7<e >r87 5

6re=8810r3 81u147851 >ere 8ssue2 ?3 7<e 7r80= 45ur7 >87< 9r0ve 0?use 5 28s4re7851

05u17819 75 =04 5 ur8s2847851.#+%

TO "ARRANT THE ISSUANCE O A TRO, THE CA RULED THAT THE

AIDA!ITS O SAN MIGUELS "ITNESSES AND THE ACT THAT THE













REGISTERED TRADEMAR/ GINEBRA SAN MIGUEL EXISTS ARE

ENOUGH TO MA/E A INDING THAT SAN MIGUEL HAS A CLEAR AND

UNMISTA/ABLE RIGHT TO PRE!ENT IRREPARABLE IN'URY BECAUSE

GIN DRIN/ERS CONUSE SAN MIGUEL TO BE THE MANUACTURER O

GINEBRA /APITAN.#+$%

THE CA ENUMERATED THE REUISITES OR AN IN'UNCTION: ($)

THERE MUST BE A RIGHT IN ESSE OR THE EXISTENCE O A RIGHT TO

BE PROTECTED AND () THE ACT AGAINST "HICH THE IN'UNCTION IS

TO BE DIRECTED IS A !IOLATION O SUCH RIGHT. THE CA STATED

THAT THE TRADEMAR/S GINEBRA SAN MIGUEL AND GINEBRA

/APITAN ARE NOT IDENTICAL, BUT IT IS CLEAR THAT THE "ORD

GINEBRA IS THE DOMINANT EATURE IN BOTH TRADEMAR/S. THERE

"AS A STRONG INDICATION THAT CONUSION "AS LI/ELY TO

OCCUR. ONE "OULD BE LED TO CONCLUDE THAT BOTH PRODUCTS

ARE AILIATED "ITH SAN MIGUEL BECAUSE THE DISTINCTI!EMAR/ GINEBRA IS IDENTIIED "ITH SAN MIGUEL. IT IS THE MAR/

"HICH DRA"S THE ATTENTION O THE BUYER AND LEADS HIM TO

CONCLUDE THAT THE GOODS ORIGINATED ROM THE SAME

MANUACTURER.#+%

THE CA OBSER!ED THAT THE GIN PRODUCTS O GINEBRA SAN

MIGUEL AND GINEBRA /APITAN POSSESS THE SAME PHYSICAL

ATTRIBUTES "ITH REERENCE TO THEIR ORM, COMPOSITION,

TEXTURE, OR UALITY. THE CA UPHELD THE TRIAL COURTS RULING

THAT SAN MIGUEL HAS SUICIENTLY ESTABLISHED ITS RIGHT TO

PRIOR USE AND REGISTRATION O THE MAR/ GINEBRA AS A

DOMINANT EATURE O ITS TRADEMAR/. GINEBRA HAS BEEN

IDENTIIED "ITH SAN MIGUELS GOODS, THEREBY, IT ACUIRED A

RIGHT IN SUCH MAR/, AND I ANOTHER INRINGED THE

TRADEMAR/, SAN MIGUEL COULD IN!O/E ITS PROPERTY RIGHT.#++%

T%e I'')e

T<e 4e17r0= @ues7851 5r res5=u7851 8s ><e7<er S01 M89ue= 8s e1787=e2 75 7<e >r87 5

6re=8810r3 81u147851 9r017e2 ?3 7<e 7r80= 45ur7 0s 08re2 ?3 7<e CA. 5r 7<8s

re0s51, >e s<0== 2e0= 51=3 >87< 7<e @ues7851e2 >r87 012 157 >87< 7<e er87s 5 7<e

40se 6e12819 ?e5re 7<e 7r80= 45ur7.









T%e R)*in+ o t%e Co)rt

Clear and Unmistakable Right

SECTION $, RULE O THE RULES O COURT DEINES A

PRELIMINARY IN'UNCTION AS AN ORDER GRANTED AT ANY STAGE O

A PROCEEDING PRIOR TO THE 'UDGMENT OR INAL ORDER,

REUIRING A PARTY OR A COURT, AGENCY, OR A PERSON TO RERAIN

ROM A PARTICULAR ACT OR ACTS.

A PRELIMINARY IN'UNCTION IS A PRO!ISIONAL REMEDY OR THE

PROTECTION O SUBSTANTI!E RIGHTS AND INTERESTS. IT IS NOT A

CAUSE O ACTION IN ITSEL BUT MERELY AN AD'UNCT TO THE MAIN

CASE. ITS OB'ECTI!E IS TO PRE!ENT A THREATENED OR

CONTINUOUS IRREPARABLE IN'URY TO SOME O THE PARTIES

BEORE THEIR CLAIMS CAN BE THOROUGHLY IN!ESTIGATED AND

AD!ISEDLY AD'UDICATED. IT IS RESORTED TO ONLY "HEN THERE IS

A PRESSING NEED TO A!OID IN'URIOUS CONSEUENCES "HICH

CANNOT BE REMEDIED UNDER ANY STANDARD COMPENSATION. #+*%

Se47851 +, Ru=e 5 7<e Ru=es 5 C5ur7 6r5v82es:

SECTION +. GROUNDS FOR ISSUANCE OF A WRIT OF PRELIMINARY INJUNCTION .A PRELIMINARY IN'UNCTION MAY BE GRANTED "HEN

IT IS ESTABLISHED:

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Prejudging the Merits of the Case

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"E BELIE!E THAT THE ISSUED "RIT O PRELIMINARY IN'UNCTION,

I ALLO"ED, DISPOSES O THE CASE ON THE MERITS AS IT

EECTI!ELY EN'OINS THE USE O THE "ORD GINEBRA "ITHOUT

THE BENEIT O A ULL-BLO"N TRIAL. IN RI4AS 4. SECURITIES AND

E5C6ANGE COMMISSION ,#% "E RULED THAT COURTS SHOULD A!OID

ISSUING A "RIT O PRELIMINARY IN'UNCTION "HICH "OULD IN

EECT DISPOSE O THE MAIN CASE "ITHOUT TRIAL. THE ISSUANCE

O THE "RIT O PRELIMINARY IN'UNCTION HAD THE EECT O

GRANTING THE MAIN PRAYER O THE COMPLAINT SUCH THAT THERE

IS PRACTICALLY NOTHING LET OR THE TRIAL COURT TO TRY

EXCEPT THE PLAINTIS CLAIM OR DAMAGES.

Irreparable Injury

http://127.0.0.1:7860/source/2003/feb2003/118249.htm














TANDUAY POINTS OUT THAT THE SUPPOSED DAMAGES THAT SAN

MIGUEL "ILL SUER AS A RESULT O TANDUAYS INRINGEMENT OR

UNAIR COMPETITION CANNOT BE CONSIDERED IRREPARABLE

BECAUSE THE DAMAGES ARE SUSCEPTIBLE O MATHEMATICAL

COMPUTATION. TANDUAY IN!O/ES SECTION $.$ O THE IP

CODE#$% AS THE BASIS OR THE COMPUTATION O DAMAGES. #%

SAN MIGUEL A!ERS THAT IT STANDS TO SUER IRREPARABLE

IN'URY I THE MANUACTURE AND SALE O TANDUAYS GINEBRA

/APITAN ARE NOT EN'OINED. SAN MIGUEL CLAIMS THAT THE ROUGH

ESTIMATE O THE DAMAGES#+% IT "OULD INCUR IS SIMPLY A GUIDE

OR THE TRIAL COURT IN COMPUTING THE APPROPRIATE DOC/ET

EES. SAN MIGUEL ASSERTS THAT THE ULL EXTENT O THE

DAMAGE IT "OULD SUER IS DIICULT TO MEASURE "ITH ANYREASONABLE ACCURACY BECAUSE IT HAS IN!ESTED HUNDREDS O

MILLIONS O!ER A PERIOD O $ YEARS TO ESTABLISH GOOD"ILL

AND REPUTATION NO" BEING EN'OYED BY THE GINEBRA SAN

MIGUEL MAR/.#*% SAN MIGUEL REUTES TANDUAYS CLAIM THAT THE

IN'URY "HICH SAN MIGUEL STANDS TO SUER CAN BE MEASURED

"ITH REASONABLE ACCURACY AS THE LEGAL ORMULA TO

DETERMINE SUCH IN'URY IS PRO!IDED IN SECTION $.$ O THE IP

CODE. SAN MIGUEL REASONS THAT I TANDUAYS CLAIM IS UPHELD,

THEN THERE "OULD NE!ER BE A PROPER OCCASION TO ISSUE A

"RIT O PRELIMINARY IN'UNCTION IN RELATION TO COMPLAINTSOR INRINGEMENT AND UNAIR COMPETITION, AS THE IN'URY

"HICH THE O"NER O THE MAR/ SUERS, OR STANDS TO SUER,

"ILL AL"AYS BE SUSCEPTIBLE O MATHEMATICAL COMPUTATION. #%

IN LE4I STRAUSS ' CO. 4. CLINTON APPARELLE, INC.,#% THIS COURT

UPHELD THE APPELLATE COURTS RULING THAT THE DAMAGES LE!I

STRAUSS K CO. HAD SUERED OR CONTINUES TO SUER MAY BE

COMPENSATED IN TERMS O MONETARY CONSIDERATION. THIS

COURT, UOTING GO4ERNMENT SER4ICE INSURANCE SYSTEM 4. FLORENDO,#% HELD:

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su87s, 012 ><ere 047s 0re 157 s<5>1 75 ?r819 7<e 40se >87<81 7<ese 451287851s, 7<e

re=8e 5 81u147851 s<5u=2 ?e reuse2.

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8rre60r0?=e 012 814060?=e 5 6e4u180r3 es7807851, S01 M89ue=s 4=08 401157 ?e 7<e

?0s8s 5r 0 v0=82 >r87 5 6re=8810r3 81u147851.

-(EREFORE, "E GRANT THE PETITION. "E SET ASIDE THE

DECISION O THE COURT O APPEALS DATED & 'ANUARY * AND

THE RESOLUTION DATED 'ULY * IN CA-G.R. SP NO. &. "E

DECLARE VOID THE ORDER DATED $ OCTOBER + AND THE

CORRESPONDING "RIT O PRELIMINARY IN'UNCTION ISSUED BY

BRANCH $* O THE REGIONAL TRIAL COURT O MANDALUYONG

CITY IN IP CASE NO. MC-+-$ AND CI!IL CASE NO. MC-+-+.

THE REGIONAL TRIAL COURT O MANDALUYONG CITY, BRANCH $*,

IS DIRECTED TO CONTINUE EXPEDITIOUSLY "ITH THE TRIAL TO

RESOL!E THE MERITS O THE CASE.

SO ORDERED.

ANTONIO T. CARPIO

Ass54807e 'us784e



-E CONCUR :

REYNATO S. PUNO

C<8e 'us784e

C<08r6ers51

RENATO C. CORONA TERESITA . LEONARDO/DE CASTRO

Ass54807e 'us784e Ass54807e 'us784e

LUCAS P. BERSAMIN

Ass54807e 'us784e

CERTIFICATION

Pursuant to Section 13, Article VIII of the Constitution, I certify that theconclusions in the above Decision had been reached in consultation beforethe case was assigned to the writer of the opinion of the Courts Division



REYNATO S. PUNO

C<8e 'us784e

#$% U12er Ru=e * 5 7<e Ru=es 5 C5ur7.#% PENNED BY ASSOCIATE 'USTICE ANDRES B. REYES, 'R. "ITH ASSOCIATE 'USTICES

BUENA!ENTURA '. GUERRERO

AND ROSMARI D. CARANDANG, CONCURRING.#+% PENNED BY ASSOCIATE 'USTICE ANDRES B. REYES, 'R. "ITH ASSOCIATE 'USTICES

BUENA!ENTURA '. GUERRERO

AND ROSMARI D. CARANDANG, CONCURRING.#*% PENNED BY 'UDGE ED"IN D. SORONGON.#% ROLLO, !OL. I, P. *$.#%

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Se47851 $+. R%ist"a#i(it. - $+.$. A 0r 401157 ?e re98s7ere2 8 87:

; ; ;(H) CONSISTS EXCLUSI!ELY O SIGNS THAT ARE GENERIC OR THE GOODS OR SER!ICES

THAT THEY SEE/ TO IDENTIYF

http://sc.judiciary.gov.ph/jurisprudence/2009/august2009/164324.htm#_ftnref1














































































X X X#+%AN ACT PRESCRIBING THE INTELLECTUAL PROPERTY CODE AND ESTABLISHING THE

INTELLECTUAL PROPERTY OICE, PRO!IDING OR ITS PO"ERS AND UNCTIONS, AND

OR OTHER PURPOSES. APPRO!ED ON 'UNE $&& AND TOO/ EECT ON $ 'ANUARY $&&.#+&%

SECTION $+. REGISTRA*ILITY. - $+.$. A MAR/ CANNOT BE REGISTERED I IT:

; ; ;

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5 9r5ss s0=es 5 7<e 2ee12017.#% ROLLO, !OL. II, PP. $*-$.#+% R((, !5=. I, 6. +.

SAN MIGUELS PRAYER IN THE COMPLAINT ILED "ITH THE TRIAL COURT INCLUDES:

X X X

. ORDERING THE DEENDANT TO PAY PLAINTI:
























































I) DAMAGES IN EITHER THE AMOUNT EUAL TO DOUBLE ALL PROITS MADE OUT O THE SALE

AND DISTRIBUTION O GINEBRA /APITAN ANDOR O DEENDANTS OTHER GIN

PRODUCTS BEARING THE MAR/ GINEBRA, THE REASONABLE PROIT "HICH PLAINTI

"OULD HA!E MADE HAD DEENDANT NOT !IOLATED ITS INTELLECTUAL PROPERTYRIGHTS, OR A REASONABLE PERCENTAGE DETERMINED BY THIS HONORABLE COURT

BASED UPON THE GROSS SALES O DEENDANS INRINGING ANDOR UNAIRLY

COMPETING PRODUCTS, AS "ELL AS OTHER PECUNIARY LOSS, ESTIMATED TO BE AT

LEAST P,,..II) EXEMPLARY DAMAGES IN AN AMOUNT NOT LESS THAN P,,.

III) ATTORNEYS EES AND EXPENSES O LITIGATION IN AN AMOUNT NOT LESS THAN P$,,.F

AND

I!) COSTS O SUITS.#*% ROLLO, !OL. II, PP. $*&-$*&$.#% ID. AT $*&*.#%Su6r0 157e $ 07 -.#% G.R. N5. *+, & Se67e?er $&&, $ SCRA , .









12. tanduay distillers. inc., vs genebra san miguel, inc., g. r. nr. 164324 august 14, 2009

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