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Gk No 114S08 November 19 1999

kI8nDAS I MIkUkI peLlLloner vs CCUk1 CI ALALS DIkLC1Ck CI


A1LN1S and the 8Ak8I2CN CCkCkA1ICN respondenLs
UNC
1he ConvenLlon of arls for Lhe roLecLlon of lndusLrlal roperLy ls a
mulLllaLeral LreaLy whlch Lhe hlllpplnes bound lLself Lo honor and
enforce ln Lhls counLry As Lo wheLher or noL Lhe LreaLy affords
proLecLlon Lo a forelgn corporaLlon agalnsL a hlllpplne appllcanL for Lhe
reglsLraLlon of a slmllar Lrademark ls Lhe prlnclpal lssue ln Lhls case
Cn !une 13 1970 one LollLa Lscobar Lhe predecessorlnlnLeresL of
peLlLloner rlbhdas ! Mlrpurl flled an appllcaLlon wlLh Lhe 8ureau of
aLenLs for Lhe reglsLraLlon of Lhe Lrademark 8arblzon for use ln
brassleres and ladles undergarmenLs Lscobar alleged LhaL she had been
manufacLurlng and selllng Lhese producLs under Lhe flrm name L 8M
Commerclal slnce March 3 1970
rlvaLe respondenL 8arblzon CorporaLlon a corporaLlon organlzed and
dolng buslness under Lhe laws of new ?ork uSA opposed Lhe
appllcaLlon lL clalmed LhaL
1he mark 8A88lZCn of respondenLappllcanL ls
confuslngly slmllar Lo Lhe Lrademark 8A88lZCn
whlch opposer owns and has noL abandoned
1haL opposer wlll be damaged by Lhe reglsLraLlon of
Lhe mark 8A88lZCn and lLs buslness repuLaLlon and
goodwlll wlll suffer greaL and lrreparable ln[ury
1haL Lhe respondenLappllcanLs use of Lhe sald
mark 8A88lZCn whlch resembles Lhe Lrademark
used and owned by opposer consLlLuLes an
unlawful approprlaLlon of a mark prevlously used ln
Lhe hlllpplnes and noL abandoned and Lherefore a
sLaLuLory vlolaLlon of SecLlon 4 (d) of 8epubllc AcL
no 166 as amended
1

1hls was dockeLed as lnLer arLes Case no 686 (lC no 686)
AfLer flllng of Lhe pleadlngs Lhe parLles submlLLed Lhe case for
declslon
Cn !une 18 1974 Lhe ulrecLor of aLenLs rendered [udgmenL dlsmlsslng
Lhe opposlLlon and glvlng due course Lo Lscobars appllcaLlon Lhus
WPL8LlC8L Lhe opposlLlon should be as lL ls
hereby ulSMlSSLu Accordlngly AppllcaLlon Serlal
no 19010 for Lhe reglsLraLlon of Lhe Lrademark
8A88lZCn of respondenL LollLa 8 Lscobar ls glven
due course
l1 lS SC C8uL8Lu
2

1hls declslon became flnal and on SepLember 11 1974 LollLa
Lscobar was lssued a cerLlflcaLe of reglsLraLlon for Lhe
Lrademark 8arblzon 1he Lrademark was for use ln
brassleres and ladys underwear garmenLs llke panLles
3

Lscobar laLer asslgned all her rlghLs and lnLeresL over Lhe Lrademark Lo
peLlLloner rlbhdas ! Mlrpurl who under hls flrm name Lhen Lhe
8onlLo LnLerprlses was Lhe sole and excluslve dlsLrlbuLor of Lscobars
8arblzon producLs
ln 1979 however Lscobar falled Lo flle wlLh Lhe 8ureau of aLenLs Lhe
AffldavlL of use of Lhe Lrademark requlred under SecLlon 12 of 8epubllc
AcL (8A) no 166 Lhe hlllpplne 1rademark Law uue Lo Lhls fallure Lhe
8ureau of aLenLs cancelled Lscobars cerLlflcaLe of reglsLraLlon
Cn May 27 1981 Lscobar reapplled for reglsLraLlon of Lhe cancelled
Lrademark Mlrpurl flled hls own appllcaLlon for reglsLraLlon of Lscobars
Lrademark Lscobar laLer asslgned her appllcaLlon Lo hereln peLlLloner
and Lhls appllcaLlon was opposed by prlvaLe respondenL 1he case was
dockeLed as lnLer arLes Case no 2049 (lC no 2049)
ln lLs opposlLlon prlvaLe respondenL alleged LhaL
(a) 1he Cpposer has adopLed Lhe Lrademark
8A88lZCn (word) someLlme ln !une 1933 and has
Lhen used lL on varlous klnds of wearlng apparel Cn
AugusL 14 1934 Cpposer obLalned from Lhe unlLed
SLaLes aLenL Cfflce a more recenL reglsLraLlon of
Lhe sald mark under CerLlflcaLe of 8eglsLraLlon no
316161 Cn March 1 1949 Cpposer obLalned from
Lhe unlLed SLaLes aLenL Cfflce a more recenL
reglsLraLlon for Lhe sald Lrademark under CerLlflcaLe
of 8eglsLraLlon no 307214 a copy of whlch ls
herewlLh aLLached as Annex A Sald CerLlflcaLe of
8eglsLraLlon covers Lhe followlng goods wearlng
apparel robes pa[amas llngerle nlghLgowns and
sllps
(b) SomeLlme ln March 1976 Cpposer furLher
adopLed Lhe Lrademark 8A88lZCn and 8ee deslgn
and used Lhe sald mark ln varlous klnds of wearlng
apparel Cn March 13 1977 Cpposer secured from
Lhe unlLed SLaLes aLenL Cfflce a reglsLraLlon of Lhe
sald mark under CerLlflcaLe of 8eglsLraLlon no
1061277 a copy of whlch ls hereln enclosed as
Annex 8 1he sald CerLlflcaLe of 8eglsLraLlon
covers Lhe followlng goods robes pa[amas
llngerle nlghLgowns and sllps
(c) SLlll furLher someLlme ln 1961 Cpposer
adopLed Lhe Lrademark 8A88lZCn and a
8epresenLaLlon of a Woman and LhereafLer used
Lhe sald Lrademark on varlous klnds of wearlng
apparel Cpposer obLalned from Lhe unlLed SLaLes
aLenL Cfflce reglsLraLlon of Lhe sald mark on Aprll
3 1983 under CerLlflcaLe of 8eglsLraLlon no
1233666 for Lhe followlng goods wearlng apparel
robes pa[amas nlghLgowns and llngerle A copy of
Lhe sald cerLlflcaLe of reglsLraLlon ls herewlLh
enclosed as Annex C
(d) All Lhe above reglsLraLlons are subslsLlng and ln
force and Cpposer has noL abandoned Lhe use of
Lhe sald Lrademarks ln facL Cpposer Lhrough a
whollyowned hlllpplne subsldlary Lhe hlllpplne
Llngerle CorporaLlon has been manufacLurlng Lhe
goods covered by sald reglsLraLlons and selllng
Lhem Lo varlous counLrles Lhereby earnlng valuable
forelgn exchange for Lhe counLry As a resulL of
respondenLappllcanLs mlsapproprlaLlon of
Cpposers 8A88lZCn Lrademark hlllpplne Llngerle
CorporaLlon ls prevenLed from selllng lLs goods ln
Lhe local markeL Lo Lhe damage and pre[udlce of
Cpposer and lLs whollyowned subsldlary
(e) 1he Cpposers goods bearlng Lhe Lrademark
8A88lZCn have been used ln many counLrles
lncludlng Lhe hlllpplnes for aL leasL 40 years and
has en[oyed lnLernaLlonal repuLaLlon and good wlll
for Lhelr quallLy 1o proLecL lLs reglsLraLlons ln
counLrles where Lhe goods covered by Lhe
reglsLraLlons are belng sold Cpposer has procured
Lhe reglsLraLlon of Lhe Lrademark 8A88lZCn ln Lhe
followlng counLrles AusLralla AusLrla Abu uhabl
ArgenLlna 8elglum 8ollvla 8ahraln Canada Chlle
Colombla uenmark Lcuador lrance WesL
Cermany Creece CuaLemala Pongkong
Ponduras lLaly !apan !ordan Lebanon Mexlco
Morocco anama new Zealand norway Sweden
SwlLzerland Syrla Ll Salvador SouLh Afrlca
Zambla LgypL and lran among oLhers
(f) 1o enhance lLs lnLernaLlonal repuLaLlon for
quallLy goods and Lo furLher promoLe goodwlll over
lLs name marks and producLs Cpposer has
exLenslvely adverLlsed lLs producLs Lrademarks and
name ln varlous publlcaLlons whlch are clrculaLed ln
Lhe unlLed SLaLes and many counLrles around Lhe
world lncludlng Lhe hlllpplnes
(g) 1he Lrademark 8A88lZCn was fraudulenLly
reglsLered ln Lhe hlllpplnes by one LollLa 8
Lscobar under 8eglsLraLlon no 21920 lssued on
SepLember 11 1974 ln vlolaLlon of ArLlcle 189 (3)
of Lhe 8evlsed enal Code and SecLlon 4 (d) of Lhe
1rademark Law Pereln respondenL appllcanL
acqulred by asslgnmenL Lhe rlghLs Lo Lhe sald
mark prevlously reglsLered by LollLa Lscobar hence
respondenLappllcanLs LlLle ls vlLlaLed by Lhe same
fraud and crlmlnal acL 8esldes CerLlflcaLe of
8eglsLraLlon no 21920 has been cancelled for
fallure of elLher LollLa Lscobar or hereln
respondenLappllcanL Lo seasonably flle Lhe
sLaLuLory affldavlL of use 8y applylng for a re
reglsLraLlon of Lhe mark 8A88lZCn sub[ecL of Lhls
opposlLlon respondenLappllcanL seeks Lo
perpeLuaLe Lhe fraud and crlmlnal acL commlLLed by
LollLa Lscobar
(h) Cpposers 8A88lZCn as well as lLs 8A88lZCn
and 8ee ueslgn and 8A88lZCn and 8epresenLaLlon
of a Woman Lrademarks quallfy as wellknown
Lrademarks enLlLled Lo proLecLlon under ArLlcle
6bls of Lhe ConvenLlon of arls for Lhe roLecLlon of
lndusLrlal roperLy and furLher ampllfled by Lhe
Memorandum of Lhe MlnlsLer of 1rade Lo Lhe
Ponorable ulrecLor of aLenLs daLed CcLober 23
1983 slc
4
LxecuLlve Crder no 913 daLed CcLober
7 1963 and Lhe Memorandum of Lhe MlnlsLer of
1rade and lndusLry Lo Lhe Ponorable ulrecLor of
aLenLs daLed CcLober 23 1983
(l) 1he Lrademark applled for by respondenL
appllcanL ls ldenLlcal Lo Cpposers 8A88lZCn
Lrademark and consLlLuLes Lhe domlnanL parL of
Cpposers Lwo oLher marks namely 8A88lZCn and
8ee deslgn and 8A88lZCn and a 8epresenLaLlon of
a Woman 1he conLlnued use by respondenL
appllcanL of Cpposers Lrademark 8A88lZCn on
goods belonglng Lo Class 23 consLlLuLes a clear case
of commerclal and crlmlnal plracy and lf allowed
reglsLraLlon wlll vlolaLe noL only Lhe 1rademark Law
buL also ArLlcle 189 of Lhe 8evlsed enal Code and
Lhe commlLmenL of Lhe hlllpplnes Lo an
lnLernaLlonal LreaLy
S

8eplylng Lo prlvaLe respondenLs opposlLlon peLlLloner ralsed
Lhe defense of s joJlcoto
Cn March 2 1982 Lscobar asslgned Lo peLlLloner Lhe use of Lhe buslness
name 8arblzon lnLernaLlonal eLlLloner reglsLered Lhe name wlLh Lhe
ueparLmenL of 1rade and lndusLry (u1l) for whlch a cerLlflcaLe of
reglsLraLlon was lssued ln 1987
lorLhwlLh prlvaLe respondenL flled before Lhe Cfflce of Legal Affalrs of
Lhe u1l a peLlLlon for cancellaLlon of peLlLloners buslness name
Cn november 26 1991 Lhe u1l Cfflce of Legal Affalrs cancelled
peLlLloners cerLlflcaLe of reglsLraLlon and declared prlvaLe respondenL
Lhe owner and prlor user of Lhe buslness name 8arblzon lnLernaLlonal
1hus
WPL8LlC8L Lhe peLlLlon ls hereby C8An1Lu and
peLlLloner ls declared Lhe owner and prlor user of
Lhe buslness name 8A88lZCn ln1L8nA1lCnAL
under CerLlflcaLe of 8eglsLraLlon no 8709000
daLed March 10 1987 and lssued ln Lhe name of
respondenL ls slc hereby ordered revoked and
cancelled


Meanwhlle ln lC no 2049 Lhe evldence of boLh parLles were recelved
by Lhe ulrecLor of aLenLs Cn !une 18 1992 Lhe ulrecLor rendered a
declslon declarlng prlvaLe respondenLs opposlLlon barred by s
joJlcoto and glvlng due course Lo peLlLloners appllcaLlon for
reglsLraLlon Lo wlL
WPL8LlC8L Lhe presenL CpposlLlon ln lnLer arLes
Case no 2049 ls hereby uLCLA8Lu 8A88Lu by s
joJlcoto and ls hereby ulSMlSSLu Accordlngly
AppllcaLlon Serlal no 43011 for Lrademark
8A88lZCn flled by rlbhdas ! Mlrpurl ls ClvLn uuL
CCu8SL
SC C8uL8Lu


rlvaLe respondenL quesLloned Lhls declslon before Lhe CourL of Appeals
ln CAC8 S no 28413 Cn Aprll 30 1993 Lhe CourL of Appeals
reversed Lhe ulrecLor of aLenLs flndlng LhaL lC no 686 was noL barred
by [udgmenL ln lC no 2049 and ordered LhaL Lhe case be remanded Lo
Lhe 8ureau of aLenLs for furLher proceedlngs lz
WPL8LlC8L Lhe appealed ueclslon no 9213
daLed !une 18 1992 of Lhe ulrecLor of aLenLs ln
lnLer arLes Case no 2049 ls hereby SL1 ASluL and
Lhe case ls hereby remanded Lo Lhe 8ureau of
aLenLs for furLher proceedlngs ln accordance wlLh
Lhls pronouncemenL no cosLs
8

ln a 8esoluLlon daLed March 16 1994 Lhe CourL of Appeals
denled reconslderaLlon of lLs declslon
9
Pence Lhls recourse
8efore us peLlLloner ralses Lhe followlng lssues
1 WPL1PL8 C8 nC1 1PL uLClSlCn Cl 1PL
ul8LC1C8 Cl A1Ln1S ln ln1L8 A81LS CASL nC
686 8LnuL8Lu Cn !unL 18 1974 AnnLx C
PL8LCl CCnS1l1u1Lu IuulcA1A ln SC lA8 AS
1PL CASL 8LlC8L 1PL ul8LC1C8 Cl A1Ln1S lS
CCnCL8nLu
2 WPL1PL8 C8 nC1 1PL ul8LC1C8 Cl A1Ln1S
CC88LC1L? ALlLu 1PL 8lnClLL Cl
IuulcA1A ln ulSMlSSlnC 8lvA1L 8LSCnuLn1
8A88lZCnS CCSl1lCn 1C L1l1lCnL8S
ALlCA1lCn lC8 8LClS18A1lCn lC8 1PL
18AuLMA8k 8A88lZCn WPlCP PAS SlnCL
8lLnLu 1C CL81lllCA1L Cl 8LClS18A1lCn nC
33920 Cn nCvLM8L8 16 1992
3 WPL1PL8 C8 nC1 1PL 8LCulSl1L 1PA1 A
!uuCMLn1 Cn 1PL ML8l1S 8LCul8Lu A
PLA8lnC WPL8L 8C1P A81lLS A8L SuCSLu
1C AuuuCL LvluLnCL Anu WPL1PL8 1PL !Cln1
Su8MlSSlCn Cl 1PL A81lLS 1C A CASL Cn 1PL
8ASlS Cl 1PLl8 8LSLC1lvL LLAulnCS Wl1PCu1
8LSLn1lnC 1LS1lMCnlAL C8 uCCuMLn1A8?
LvluLnCL lALLS Wl1Pln 1PL MLAnlnC Cl
!uuCMLn1 Cn 1PL ML8l1S AS CnL Cl 1PL
8LCulSl1LS 1C CCnS1l1u1L IuulcA1A
4 WPL1PL8 A uLClSlCn Cl 1PL uLA81MLn1 Cl
18AuL Anu lnuuS18? CAnCLLLlnC L1l1lCnL8S
ll8M nAML 8A88lZCn ln1L8nA1lCnAL Anu
WPlCP uLClSlCn lS S1lLL LnulnC
8LCCnSluL8A1lCn nLvL8 CllL8Lu ln LvluLnCL
8LlC8L 1PL ul8LC1C8 Cl A1Ln1S ln ln1L8
A81LS CASL nC 2049 PAS 1PL 8lCP1 1C uLCluL
SuCP CAnCLLLA1lCn nC1 Cn 1PL 8ASlS Cl 1PL
8uSlnLSS nAML LAW (AS lMLLMLn1Lu 8? 1PL
8u8LAu Cl uCMLS1lC 18AuL) 8u1 Cn 1PL 8ASlS
Cl 1PL A8lS CCnvLn1lCn Anu 1PL 18AuLMA8k
LAW (8A 166) WPlCP lS Wl1Pln 1PL C8lClnAL
Anu LxCLuSlvL !u8lSulC1lCn Cl 1PL ul8LC1C8
Cl A1Ln1S
10

8efore rullng on Lhe lssues of Lhe case Lhere ls need for a brlef
background on Lhe funcLlon and hlsLorlcal developmenL of Lrademarks
and Lrademark law
A Lrademark ls deflned under 8A 166 Lhe 1rademark Law as
lncludlng any word name symbol emblem slgn or devlce or any
comblnaLlon Lhereof adopLed and used by a manufacLurer or merchanL
Lo ldenLlfy hls goods and dlsLlngulsh Lhem from Lhose manufacLured
sold or dealL ln by oLhers
11
1hls deflnlLlon has been slmpllfled ln 8A
no 8293 Lhe lnLellecLual roperLy Code of Lhe hlllpplnes whlch
deflnes a Lrademark as any vlslble slgn capable of dlsLlngulshlng
goods
12
ln hlllpplne [urlsprudence Lhe funcLlon of a Lrademark ls Lo
polnL ouL dlsLlncLly Lhe orlgln or ownershlp of Lhe goods Lo whlch lL ls
afflxed Lo secure Lo hlm who has been lnsLrumenLal ln brlnglng lnLo Lhe
markeL a superlor arLlcle of merchandlse Lhe frulL of hls lndusLry and
sklll Lo assure Lhe publlc LhaL Lhey are procurlng Lhe genulne arLlcle Lo
prevenL fraud and lmposlLlon and Lo proLecL Lhe manufacLurer agalnsL
subsLlLuLlon and sale of an lnferlor and dlfferenL arLlcle as hls producL
13

Modern auLhorlLles on Lrademark law vlew Lrademarks as performlng
Lhree dlsLlncL funcLlons (1) Lhey lndlcaLe orlgln or ownershlp of Lhe
arLlcles Lo whlch Lhey are aLLached (2) Lhey guaranLee LhaL Lhose
arLlcles come up Lo a cerLaln sLandard of quallLy and (3) Lhey adverLlse
Lhe arLlcles Lhey symbollze
14

Symbols have been used Lo ldenLlfy Lhe ownershlp or orlgln of arLlcles
for several cenLurles
1S
As early as 3000 8C marklngs on poLLery have
been found by archaeologlsLs Cave drawlngs ln souLhwesLern Lurope
show blson wlLh symbols on Lhelr flanks
1
Archaeologlcal dlscoverles of
anclenL Creek and 8oman lnscrlpLlons on sculpLural works palnLlngs
vases preclous sLones glassworks brlcks eLc reveal some feaLures
whlch are LhoughL Lo be marks or symbols 1hese marks were afflxed by
Lhe creaLor or maker of Lhe arLlcle or by publlc auLhorlLles as lndlcaLors
for Lhe paymenL of Lax for dlscloslng sLaLe monopoly or devlces for Lhe
seLLlemenL of accounLs beLween an enLrepreneur and hls workmen
1

ln Lhe Mlddle Ages Lhe use of many klnds of marks on a varleLy of goods
was commonplace llfLeenLh cenLury Lngland saw Lhe compulsory use of
ldenLlfylng marks ln cerLaln Lrades 1here were Lhe bakers mark on
bread boLLlemakers marks smlLhs marks Lanners marks waLermarks
on paper eLc
18
Lvery gulld had lLs own mark and every masLer
belonglng Lo lL had a speclal mark of hls own 1he marks were noL
Lrademarks buL pollce marks compulsorlly lmposed by Lhe soverelgn Lo
leL Lhe publlc know LhaL Lhe goods were noL forelgn goods smuggled
lnLo an area where Lhe gulld had a monopoly as well as Lo ald ln Lraclng
defecLlve work or poor crafLsmanshlp Lo Lhe arLlsan
19
lor a slmllar
reason merchanLs also used merchanLs marks MerchanLs dealL ln
goods acqulred from many sources and Lhe marks enabled Lhem Lo
ldenLlfy and reclalm Lhelr goods upon recovery afLer shlpwreck or
plracy
20

WlLh consLanL use Lhe mark acqulred popularlLy and became volunLarlly
adopLed lL was noL lnLended Lo creaLe or conLlnue monopoly buL Lo glve
Lhe cusLomer an lndex or guaranLee of quallLy
21
lL was ln Lhe laLe 18Lh
cenLury when Lhe lndusLrlal revoluLlon gave rlse Lo mass producLlon and
dlsLrlbuLlon of consumer goods LhaL Lhe mark became an lmporLanL
lnsLrumenLallLy of Lrade and commerce
22
8y Lhls Llme Lrademarks dld
noL merely ldenLlfy Lhe goods Lhey also lndlcaLed Lhe goods Lo be of
saLlsfacLory quallLy and Lhereby sLlmulaLed furLher purchases by Lhe
consumlng publlc
23
LvenLually Lhey came Lo symbollze Lhe goodwlll
and buslness repuLaLlon of Lhe owner of Lhe producL and became a
properLy rlghL proLecLed by law
24
1he common law developed Lhe
docLrlne of Lrademarks and Lradenames Lo prevenL a person from
palmlng off hls goods as anoLhers from geLLlng anoLhers buslness or
ln[urlng hls repuLaLlon by unfalr means and from defraudlng Lhe
publlc
2S
SubsequenLly Lngland and Lhe unlLed SLaLes enacLed naLlonal
leglslaLlon on Lrademarks as parL of Lhe law regulaLlng unfalr Lrade
2
lL
became Lhe rlghL of Lhe Lrademark owner Lo exclude oLhers from Lhe use
of hls mark or of a confuslngly slmllar mark where confuslon resulLed ln
dlverslon of Lrade or flnanclal ln[ury AL Lhe same Llme Lhe Lrademark
served as a warnlng agalnsL Lhe lmlLaLlon or faklng of producLs Lo
prevenL Lhe lmposlLlon of fraud upon Lhe publlc
2

1oday Lhe Lrademark ls noL merely a symbol of orlgln and goodwlll lL ls
ofLen Lhe mosL effecLlve agenL for Lhe acLual creaLlon and proLecLlon of
goodwlll lL lmprlnLs upon Lhe publlc mlnd an anonymous and
lmpersonal guaranLy of saLlsfacLlon creaLlng a deslre for furLher
saLlsfacLlon ln oLher words Lhe mark acLually sells Lhe goods
28
1he
mark has become Lhe sllenL salesman Lhe condulL Lhrough whlch
dlrecL conLacL beLween Lhe Lrademark owner and Lhe consumer ls
assured lL has lnvaded popular culLure ln ways never anLlclpaLed LhaL lL
has become a more convlnclng selllng polnL Lhan even Lhe quallLy of Lhe
arLlcle Lo whlch lL refers
29
ln Lhe lasL half cenLury Lhe unparalleled
growLh of lndusLry and Lhe rapld developmenL of communlcaLlons
Lechnology have enabled Lrademarks Lradenames and oLher dlsLlncLlve
slgns of a producL Lo peneLraLe reglons where Lhe owner does noL
acLually manufacLure or sell Lhe producL lLself Coodwlll ls no longer
conflned Lo Lhe LerrlLory of acLual markeL peneLraLlon lL exLends Lo
zones where Lhe marked arLlcle has been flxed ln Lhe publlc mlnd
Lhrough adverLlslng
30
WheLher ln Lhe prlnL broadcasL or elecLronlc
communlcaLlons medlum parLlcularly on Lhe lnLerneL
31
adverLlslng has
paved Lhe way for growLh and expanslon of Lhe producL by creaLlng and
earnlng a repuLaLlon LhaL crosses over borders vlrLually Lurnlng Lhe
whole world lnLo one vasL markeLplace
1hls ls Lhe lssc of Lhe presenL conLroversy eLlLloner brlngs
Lhls acLlon clalmlng LhaL 8arblzon producLs have been sold ln Lhe
hlllpplnes slnce 1970 eLlLloner developed Lhls markeL by worklng long
hours and spendlng conslderable sums of money on adverLlsemenLs and
promoLlon of Lhe Lrademark and lLs producLs now almosL LhlrLy years
laLer prlvaLe respondenL a forelgn corporaLlon swaggers lnLo Lhe
counLry llke a conquerlng hero usurps Lhe Lrademark and lnvades
peLlLloners markeL
32
!usLlce and falrness dlcLaLe LhaL prlvaLe
respondenL be prevenLed from approprlaLlng whaL ls noL lLs own
Legally aL Lhe same Llme prlvaLe respondenL ls barred from quesLlonlng
peLlLloners ownershlp of Lhe Lrademark because of s joJlcoto
33

LlLerally s joJlcoto means a maLLer ad[udged a Lhlng [udlclally acLed
upon or declded a Lhlng or maLLer seLLled by [udgmenL
34
ln s
joJlcoto Lhe [udgmenL ln Lhe flrsL acLlon ls consldered concluslve as Lo
every maLLer offered and recelved Lhereln as Lo any oLher admlsslble
maLLer whlch mlghL have been offered for LhaL purpose and all oLher
maLLers LhaL could have been ad[udged Lhereln
3S
s joJlcoto ls an
absoluLe bar Lo a subsequenL acLlon for Lhe same cause and lLs
requlslLes are (a) Lhe former [udgmenL or order musL be flnal (b) Lhe
[udgmenL or order musL be one on Lhe merlLs (c) lL musL have been
rendered by a courL havlng [urlsdlcLlon over Lhe sub[ecL maLLer and
parLles (d) Lhere musL be beLween Lhe flrsL and second acLlons ldenLlLy
of parLles of sub[ecL maLLer and of causes of acLlon
3

1he SollclLor Ceneral on behalf of respondenL ulrecLor of aLenLs has
[olned cause wlLh peLlLloner 8oLh clalm LhaL all Lhe four elemenLs of s
joJlcoto have been complled wlLh LhaL Lhe [udgmenL ln lC no 686 was
flnal and was rendered by Lhe ulrecLor of aLenLs who had [urlsdlcLlon
over Lhe sub[ecL maLLer and parLles LhaL Lhe [udgmenL ln lC no 686
was on Lhe merlLs and LhaL Lhe lack of a hearlng was lmmaLerlal
because subsLanLlal lssues were ralsed by Lhe parLles and passed upon
by Lhe ulrecLor of aLenLs
3

1he declslon ln lC no 686 reads as follows
xxx xxx xxx
nelLher parLy Look LesLlmony nor adduced
documenLary evldence 1hey submlLLed Lhe case for
declslon based on Lhe pleadlngs whlch LogeLher
wlLh Lhe perLlnenL records have all been carefully
consldered
Accordlngly Lhe only lssue for my dlsposlLlon ls
wheLher or noL Lhe hereln opposer would probably
be damaged by Lhe reglsLraLlon of Lhe Lrademark
8A88lZCn soughL by Lhe respondenLappllcanL on
Lhe ground LhaL lL so resembles Lhe Lrademark
8A88lZCn allegedly used and owned by Lhe former
Lo be llkely Lo cause confuslon mlsLake or Lo
decelve purchasers
Cn record Lhere can be no doubL LhaL respondenL
appllcanLs soughLLobereglsLered Lrademark
8A88lZCn ls slmllar ln facL obvlously ldenLlcal Lo
opposers alleged Lrademark 8A88lZCn ln spelllng
and pronunclaLlon 1he only appreclable buL very
negllglble dlfference lles ln Lhelr respecLlve
appearances or manner of presenLaLlon
8espondenLappllcanLs Lrademark ls ln bold leLLers
(seL agalnsL a black background) whlle LhaL of Lhe
opposer ls offered ln sLyllsh scrlpL leLLers
lL ls opposers asserLlon LhaL lLs Lrademark
8A88lZCn has been used ln Lrade or commerce ln
Lhe hlllpplnes prlor Lo Lhe daLe of appllcaLlon for
Lhe reglsLraLlon of Lhe ldenLlcal mark 8A88lZCn by
Lhe respondenLappllcanL Powever Lhe allegaLlon
of facLs ln opposers verlfled noLlce of opposlLlon ls
devold of such maLerlal lnformaLlon ln facL a
readlng of Lhe LexL of sald verlfled opposlLlon
reveals an apparenL lf noL dellberaLe omlsslon of
Lhe daLe (or year) when opposers alleged
Lrademark 8A88lZCn was flrsL used ln Lrade ln Lhe
hlllpplnes (see par no 1 p 2 verlfled noLlce of
CpposlLlon 8ec) 1hus lL cannoL here and now be
ascerLalned wheLher opposers alleged use of Lhe
Lrademark 8A88lZCn could be prlor Lo Lhe use of
Lhe ldenLlcal mark by Lhe hereln respondenL
appllcanL slnce Lhe opposer aLLempLed nelLher Lo
subsLanLlaLe lLs clalm of use ln local commerce wlLh
any proof or evldence lnsLead Lhe opposer
submlLLed Lhe case for declslon based merely on
Lhe pleadlngs
Cn Lhe oLher hand respondenLappllcanL asserLed
ln her amended appllcaLlon for reglsLraLlon LhaL she
flrsL used Lhe Lrademark 8A88lZCn for brasslere (or
brasselre) and ladles underwear garmenLs and
panLles as early as March 3 1970 8e LhaL as lL may
Lhere belng no LesLlmony Laken as Lo sald daLe of
flrsL use respondenLappllcanL wlll be llmlLed Lo Lhe
flllng daLe !une 13 1970 of her appllcaLlon as Lhe
daLe of flrsL use (8ule 173 8ules of racLlce ln
1rademark Cases)
lrom Lhe foregolng l conclude LhaL Lhe opposer has
noL made ouL a case of probable damage by Lhe
reglsLraLlon of Lhe respondenLappllcanLs mark
8A88lZCn
WPL8LlC8L Lhe opposlLlon should be as lL ls
hereby ulSMlSSLu Accordlngly AppllcaLlon Serlal
no 19010 for Lhe reglsLraLlon of Lhe Lrademark
8A88lZCn of respondenL LollLa 8 Lscobar ls glven
due course
38

1he declslon ln lC no 686 was a [udgmenL on Lhe merlLs and lL was
error for Lhe CourL of Appeals Lo rule LhaL lL was noL A [udgmenL ls on
Lhe merlLs when lL deLermlnes Lhe rlghLs and llablllLles of Lhe parLles
based on Lhe dlsclosed facLs lrrespecLlve of formal Lechnlcal or dllaLory
ob[ecLlons
39
lL ls noL necessary LhaL a Lrlal should have been conducLed
lf Lhe courLs [udgmenL ls general and noL based on any Lechnlcal defecL
or ob[ecLlon and Lhe parLles had a full legal opporLunlLy Lo be heard on
Lhelr respecLlve clalms and conLenLlons lL ls on Lhe merlLs alLhough
Lhere was no acLual hearlng or argumenLs on Lhe facLs of Lhe case
40
ln
Lhe case aL bar Lhe ulrecLor of aLenLs dld noL dlsmlss prlvaLe
respondenLs opposlLlon on a sheer LechnlcallLy AlLhough no hearlng
was conducLed boLh parLles flled Lhelr respecLlve pleadlngs and were
glven opporLunlLy Lo presenL evldence 1hey however walved Lhelr
rlghL Lo do so and submlLLed Lhe case for declslon based on Lhelr
pleadlngs 1he lack of evldence dld noL deLer Lhe ulrecLor of aLenLs
from rullng on Lhe case parLlcularly on Lhe lssue of prlor use whlch goes
lnLo Lhe very subsLance of Lhe rellef soughL by Lhe parLles Slnce prlvaLe
respondenL falled Lo prove prlor use of lLs Lrademark Lscobars clalm of
flrsL use was upheld
1he [udgmenL ln lC no 686 belng on Lhe merlLs peLlLloner and Lhe
SollclLor Ceneral allege LhaL lC no 686 and lC no 2049 also comply
wlLh Lhe fourLh requlslLe of s joJlcoto l Lhey lnvolve Lhe same
parLles and Lhe same sub[ecL maLLer and have ldenLlcal causes of acLlon
undlspuLedly lC no 686 and lC no 2049 lnvolve Lhe same parLles
and Lhe same sub[ecL maLLer eLlLloner hereln ls Lhe asslgnee of
Lscobar whlle prlvaLe respondenL ls Lhe same Amerlcan corporaLlon ln
Lhe flrsL case 1he sub[ecL maLLer of boLh cases ls Lhe Lrademark
8arblzon rlvaLe respondenL counLerargues however LhaL Lhe Lwo
cases do noL have ldenLlcal causes of acLlon new causes of acLlon were
allegedly lnLroduced ln lC no 2049 such as Lhe prlor use and
reglsLraLlon of Lhe Lrademark ln Lhe unlLed SLaLes and oLher counLrles
worldwlde prlor use ln Lhe hlllpplnes and Lhe fraudulenL reglsLraLlon
of Lhe mark ln vlolaLlon of ArLlcle 189 of Lhe 8evlsed enal Code rlvaLe
respondenL also clLed proLecLlon of Lhe Lrademark under Lhe ConvenLlon
of arls for Lhe roLecLlon of lndusLrlal roperLy speclflcally ArLlcle
6bls Lhereof and Lhe lmplemenLaLlon of ArLlcle 6bls by Lwo Memoranda
daLed november 20 1980 and CcLober 23 1983 of Lhe MlnlsLer of 1rade
and lndusLry Lo Lhe ulrecLor of aLenLs as well as LxecuLlve Crder (LC)
no 913
1he ConvenLlon of arls for Lhe roLecLlon of lndusLrlal roperLy
oLherwlse known as Lhe arls ConvenLlon ls a mulLllaLeral LreaLy LhaL
seeks Lo proLecL lndusLrlal properLy conslsLlng of paLenLs uLlllLy models
lndusLrlal deslgns Lrademarks servlce marks Lrade names and
lndlcaLlons of source or appellaLlons of orlgln and aL Lhe same Llme alms
Lo repress unfalr compeLlLlon
41
1he ConvenLlon ls essenLlally a compacL
among varlous counLrles whlch as members of Lhe unlon have pledged
Lo accord Lo clLlzens of Lhe oLher member counLrles Lrademark and
oLher rlghLs comparable Lo Lhose accorded Lhelr own clLlzens by Lhelr
domesLlc laws for an effecLlve proLecLlon agalnsL unfalr
compeLlLlon
42
ln shorL forelgn naLlonals are Lo be glven Lhe same
LreaLmenL ln each of Lhe member counLrles as LhaL counLry makes
avallable Lo lLs own clLlzens
43
naLlonals of Lhe varlous member naLlons
are Lhus assured of a cerLaln mlnlmum of lnLernaLlonal proLecLlon of
Lhelr lndusLrlal properLy
44

1he ConvenLlon was flrsL slgned by eleven counLrles ln arls on March
20 1883
4S
lL underwenL several revlslons aL 8russels ln 1900 aL
WashlngLon ln 1911 aL 1he Pague ln 1923 aL London ln 1934 aL Llsbon
ln 1938
4
and aL SLockholm ln 1967 8oLh Lhe hlllpplnes and Lhe unlLed
SLaLes of Amerlca hereln prlvaLe respondenLs counLry are slgnaLorles
Lo Lhe ConvenLlon 1he unlLed SLaLes acceded on May 30 1887 whlle
Lhe hlllpplnes Lhrough lLs SenaLe concurred on May 10 1963
4
1he
hlllpplnes adheslon became effecLlve on SepLember 27 1963
48
and
from Lhls daLe Lhe counLry obllgaLed lLself Lo honor and enforce Lhe
provlslons of Lhe ConvenLlon
49

ln Lhe case aL bar prlvaLe respondenL anchors lLs cause of acLlon on Lhe
flrsL paragraph of ArLlcle 6bls of Lhe arls ConvenLlon whlch reads as
follows
ArLlcle 6bls
(1) 1he counLrles of Lhe unlon underLake elLher
admlnlsLraLlvely lf Lhelr leglslaLlon so permlLs or aL Lhe
requesL of an lnLeresLed parLy Lo refuse or Lo cancel Lhe
reglsLraLlon and Lo prohlblL Lhe use of a Lrademark whlch
consLlLuLes a reproducLlon an lmlLaLlon or a LranslaLlon
llable Lo creaLe confuslon of a mark consldered by Lhe
compeLenL auLhorlLy of Lhe counLry of reglsLraLlon or use Lo
be wellknown ln LhaL counLry as belng already Lhe mark of a
person enLlLled Lo Lhe beneflLs of Lhls ConvenLlon and used
for ldenLlcal or slmllar goods 1hese provlslons shall also apply
when Lhe essenLlal parL of Lhe mark consLlLuLes a
reproducLlon of any such wellknown mark or an lmlLaLlon
llable Lo creaLe confuslon LherewlLh
(2) A perlod of aL leasL flve years from Lhe daLe of reglsLraLlon
shall be allowed for seeklng Lhe cancellaLlon of such a mark
1he counLrles of Lhe unlon may provlde for a perlod wlLhln
whlch Lhe prohlblLlon of use musL be soughL
(3) no Llme llmlL shall be flxed for seeklng Lhe cancellaLlon or
Lhe prohlblLlon of Lhe use of marks reglsLered or used ln bad
falLh
S0

1hls ArLlcle governs proLecLlon of toJos
under Lhe flrsL paragraph each counLry of Lhe unlon bound
lLself Lo underLake Lo refuse or cancel Lhe reglsLraLlon and
prohlblL Lhe use of a Lrademark whlch ls a reproducLlon
lmlLaLlon or LranslaLlon or any essenLlal parL of whlch
Lrademark consLlLuLes a reproducLlon llable Lo creaLe
confuslon of a mark consldered by Lhe compeLenL auLhorlLy
of Lhe counLry where proLecLlon ls soughL Lo be wellknown
ln Lhe counLry as belng already Lhe mark of a person enLlLled
Lo Lhe beneflLs of Lhe ConvenLlon and used for ldenLlcal or
slmllar goods
ArL 6bls was flrsL lnLroduced aL 1he Pague ln 1923 and amended ln
Llsbon ln 1932
S1
lL ls a selfexecuLlng provlslon and does noL requlre
leglslaLlve enacLmenL Lo glve lL effecL ln Lhe member counLry
S2
lL may
be applled dlrecLly by Lhe Lrlbunals and offlclals of each member counLry
by Lhe mere publlcaLlon or proclamaLlon of Lhe ConvenLlon afLer lLs
raLlflcaLlon accordlng Lo Lhe publlc law of each sLaLe and Lhe order for lLs
execuLlon
S3

1he essenLlal requlremenL under ArLlcle 6bls ls LhaL Lhe Lrademark Lo be
proLecLed musL be wellknown ln Lhe counLry where proLecLlon ls
soughL 1he power Lo deLermlne wheLher a Lrademark ls wellknown lles
ln Lhe compeLenL auLhorlLy of Lhe counLry of reglsLraLlon or use 1hls
compeLenL auLhorlLy would be elLher Lhe reglsLerlng auLhorlLy lf lL has
Lhe power Lo declde Lhls or Lhe courLs of Lhe counLry ln quesLlon lf Lhe
lssue comes before a courL
S4

ursuanL Lo ArLlcle 6bls on november 20 1980 Lhen MlnlsLer Luls
vlllafuerLe of Lhe MlnlsLry of 1rade lssued a Memorandum Lo Lhe
ulrecLor of aLenLs 1he MlnlsLer ordered Lhe ulrecLor LhaL
ursuanL Lo Lhe arls ConvenLlon for Lhe roLecLlon of
lndusLrlal roperLy Lo whlch Lhe hlllpplnes ls a slgnaLory you
are hereby dlrecLed Lo re[ecL all pendlng appllcaLlons for
hlllpplne reglsLraLlon of slgnaLure and oLher worldfamous
Lrademarks by appllcanLs oLher Lhan lLs orlglnal owners or
users
1he confllcLlng clalms over lnLernaLlonally known Lrademarks
lnvolve such name brands as LacosLe !ordache vanderbllL
Sasson llla lerre Cardln Cuccl ChrlsLlan ulor Cscar de la
8enLa Calvln kleln Clvenchy 8alph Lauren Ceoffrey 8eene
Lanvln and 1ed Lapldus
lL ls furLher dlrecLed LhaL ln cases where warranLed
hlllpplne reglsLranLs of such Lrademarks should be asked Lo
surrender Lhelr cerLlflcaLes of reglsLraLlon lf any Lo avold
sulLs for damages and oLher legal acLlon by Lhe Lrademarks
forelgn or local owners or orlglnal users
?ou are also requlred Lo submlL Lo Lhe underslgned a progress
reporL on Lhe maLLer
lor lmmedlaLe compllance
SS

1hree years laLer on CcLober 23 1983 Lhen MlnlsLer 8oberLo Cngpln
lssued anoLher Memorandum Lo Lhe ulrecLor of aLenLs lz
ursuanL Lo LxecuLlve Crder no 913 daLed 7 CcLober 1983
whlch sLrengLhens Lhe rulemaklng and ad[udlcaLory powers
of Lhe MlnlsLer of 1rade and lndusLry and provldes lt olo
LhaL such rulemaklng and ad[udlcaLory powers should be
revlLallzed ln order LhaL Lhe MlnlsLer of 1rade and lndusLry can
apply more swlfL and effecLlve soluLlons and remedles Lo
old and new problems such as lnfrlngemenL of
lnLernaLlonallyknown Lradenames and Lrademarks and ln
vlew of Lhe declslon of Lhe lnLermedlaLe AppellaLe CourL ln
Lhe case of LA CPLMlSL LACCS1L SA versus 8AM
SAuWPAnl ACC8 S nC 13339 (17) !une 1983
S
whlch
afflrms Lhe valldlLy of Lhe MLMC8AnuuM of Lhen MlnlsLer
Luls 8 vlllafuerLe daLed 20 november 1980 conflrmlng our
obllgaLlons under Lhe A8lS CCnvLn1lCn lC8 1PL
8C1LC1lCn Cl lnuuS18lAL 8CL81? Lo whlch Lhe 8epubllc
of Lhe hlllpplnes ls a slgnaLory you are hereby dlrecLed Lo
lmplemenL measures necessary Lo effecL compllance wlLh our
obllgaLlons under sald ConvenLlon ln general and
spclflco t b o cltt oJ
ctl 6bls
S
tbf as follows
1 WheLher Lhe Lrademark under conslderaLlon ls
wellknown ln Lhe hlllpplnes or ls a mark already
belonglng Lo a person enLlLled Lo Lhe beneflLs of Lhe
CCnvLn1lCn Lhls should be esLabllshed pursuanL
Lo hlllpplne aLenL Cfflce procedures ln lt
potsand pot cases accordlng Lo any of Lhe
followlng crlLerla or any comblnaLlon Lhereof
(a) a declaraLlon by Lhe MlnlsLer of 1rade
and lndusLry LhaL Lhe Lrademark belng
consldered ls already wellknown ln Lhe
hlllpplnes such LhaL permlsslon for lLs
use by oLher Lhan lLs orlglnal owner wlll
consLlLuLe a reproducLlon lmlLaLlon
LranslaLlon or oLher lnfrlngemenL
(b) LhaL Lhe Lrademark ls used ln
commerce lnLernaLlonally supporLed by
proof LhaL goods bearlng Lhe Lrademark
are sold on an lnLernaLlonal scale
adverLlsemenLs Lhe esLabllshmenL of
facLorles sales offlces dlsLrlbuLorshlps
and Lhe llke ln dlfferenL counLrles
lncludlng volume or oLher measure of
lnLernaLlonal Lrade and commerce
(c) LhaL Lhe Lrademark ls duly reglsLered
ln Lhe lndusLrlal properLy offlce(s) of
anoLher counLry or counLrles Laklng lnLo
conslderaLlon Lhe daLe of such
reglsLraLlon
(d) LhaL Lhe Lrademark has long been
esLabllshed and obLalned goodwlll and
lnLernaLlonal consumer recognlLlon as
belonglng Lo one owner or source
(e) LhaL Lhe Lrademark acLually belongs
Lo a parLy clalmlng ownershlp and has
Lhe rlghL Lo reglsLraLlon under Lhe
provlslons of Lhe aforesLaLed A8lS
CCnvLn1lCn
2 1he word Lrademark as used ln Lhls
MLMC8AnuuM shall lnclude Lradenames servlce
marks logos slgns emblems lnslgnla or oLher
slmllar devlces used for ldenLlflcaLlon and
recognlLlon by consumers
3 1he hlllpplne aLenL Cfflce shall refuse all
appllcaLlons for or cancel Lhe reglsLraLlon of
Lrademarks whlch consLlLuLe a reproducLlon
LranslaLlon or lmlLaLlon of a Lrademark owned by a
person naLural or corporaLe who ls a clLlzen of a
counLry slgnaLory Lo Lhe A8lS CCnvLn1lCn lC8
1PL 8C1LC1lCn Cl lnuuS18lAL 8CL81?
4 1he hlllpplne aLenL Cfflce shall glve due course
Lo Lhe CpposlLlon ln cases already or hereafLer flled
agalnsL Lhe reglsLraLlon of Lrademarks enLlLled Lo
proLecLlon of SecLlon 6bls of sald A8lS
CCnvLn1lCn as ouLllned above by remandlng
appllcaLlons flled by one noL enLlLled Lo such
proLecLlon for flnal dlsallowance by Lhe
LxamlnaLlon ulvlslon
3 All pendlng appllcaLlons for hlllpplne
reglsLraLlon of slgnaLure and oLher worldfamous
Lrademarks flled by appllcanLs oLher Lhan Lhelr
orlglnal owners or users shall be re[ecLed forLhwlLh
Where such appllcanLs have already obLalned
reglsLraLlon conLrary Lo Lhe abovemenLloned A8lS
CCnvLn1lCn and/or hlllpplne Law Lhey shall be
dlrecLed Lo surrender Lhelr CerLlflcaLes of
8eglsLraLlon Lo Lhe hlllpplne aLenL Cfflce for
lmmedlaLe cancellaLlon proceedlngs
xxx xxx xxx
S8

ln Lhe vlllafuerLe Memorandum Lhe MlnlsLer of 1rade lnsLrucLed Lhe
ulrecLor of aLenLs Lo re[ecL all pendlng appllcaLlons for hlllpplne
reglsLraLlon of slgnaLure and oLher worldfamous Lrademarks by
appllcanLs oLher Lhan Lhelr orlglnal owners or users 1he MlnlsLer
enumeraLed several lnLernaLlonallyknown Lrademarks and ordered Lhe
ulrecLor of aLenLs Lo requlre hlllpplne reglsLranLs of such marks Lo
surrender Lhelr cerLlflcaLes of reglsLraLlon
ln Lhe Cngpln Memorandum Lhe MlnlsLer of 1rade and lndusLry dld noL
enumeraLe wellknown Lrademarks buL lald down guldellnes for Lhe
ulrecLor of aLenLs Lo observe ln deLermlnlng wheLher a Lrademark ls
enLlLled Lo proLecLlon as a wellknown mark ln Lhe hlllpplnes under
ArLlcle 6bls of Lhe arls ConvenLlon 1hls was Lo be esLabllshed Lhrough
hlllpplne aLenL Cfflce procedures ln lt pots and pot cases
pursuanL Lo Lhe crlLerla enumeraLed Lhereln 1he hlllpplne aLenL
Cfflce was ordered Lo refuse appllcaLlons for or cancel Lhe reglsLraLlon
of Lrademarks whlch consLlLuLe a reproducLlon LranslaLlon or lmlLaLlon
of a Lrademark owned by a person who ls a clLlzen of a member of Lhe
unlon All pendlng appllcaLlons for reglsLraLlon of worldfamous
Lrademarks by persons oLher Lhan Lhelr orlglnal owners were Lo be
re[ecLed forLhwlLh 1he Cngpln Memorandum was lssued pursuanL Lo
LxecuLlve Crder no 913 daLed CcLober 7 1983 of Lhen resldenL
Marcos whlch sLrengLhened Lhe rulemaklng and ad[udlcaLory powers of
Lhe MlnlsLer of 1rade and lndusLry for Lhe effecLlve proLecLlon of
consumers and Lhe appllcaLlon of swlfL soluLlons Lo problems ln Lrade
and lndusLry
S9

8oLh Lhe vlllafuerLe and Cngpln Memoranda were susLalned by Lhe
Supreme CourL ln Lhe 1984 landmark case ofo cbls ocst A
loJz
0
1hls courL ruled Lhereln LhaL under Lhe provlslons of ArLlcle
6bls of Lhe arls ConvenLlon Lhe MlnlsLer of 1rade and lndusLry was Lhe
compeLenL auLhorlLy Lo deLermlne wheLher a Lrademark ls wellknown
ln Lhls counLry
1

1he vlllafuerLe Memorandum was lssued ln 1980 l flfLeen (13) years
afLer Lhe adopLlon of Lhe arls ConvenLlon ln 1963 ln Lhe case aL bar
Lhe flrsL lt pots case lC no 686 was flled ln 1970 bf Lhe
vlllafuerLe Memorandum buL flve (3) years oft Lhe effecLlvlLy of Lhe
arls ConvenLlon ArLlcle 6bls was already ln effecL flve years before Lhe
flrsL case was lnsLlLuLed rlvaLe respondenL however dld noL clLe Lhe
proLecLlon of ArLlcle 6bls nelLher dld lL menLlon Lhe arls ConvenLlon aL
all lL was only ln 1981 when lC no 2049 was lnsLlLuLed LhaL Lhe arls
ConvenLlon and Lhe vlllafuerLe Memorandum and durlng Lhe pendency
of Lhe case Lhe 1983 Cngpln Memorandum were lnvoked by prlvaLe
respondenL
1he SollclLor Ceneral argues LhaL Lhe lssue of wheLher Lhe proLecLlon of
ArLlcle 6bls of Lhe ConvenLlon and Lhe Lwo Memoranda ls barred by s
joJlcoto has already been answered ln wl
wJlJ lc cot f
Appos
2
ln Lhls case peLlLloner Wolverlne a forelgn corporaLlon flled
wlLh Lhe hlllpplne aLenL Cfflce a peLlLlon for cancellaLlon of Lhe
reglsLraLlon cerLlflcaLe of prlvaLe respondenL a llllplno clLlzen for Lhe
Lrademark Push upples and uog uevlce eLlLloner alleged LhaL lL
was Lhe reglsLranL of Lhe lnLernaLlonallyknown Lrademark ln Lhe unlLed
SLaLes and oLher counLrles and clLed proLecLlon under Lhe arls
ConvenLlon and Lhe Cngpln Memorandum 1he peLlLlon was dlsmlssed
by Lhe aLenL Cfflce on Lhe ground of s joJlcoto lL was found LhaL ln
1973 peLlLloners predecessorlnlnLeresL flled Lwo peLlLlons for
cancellaLlon of Lhe same Lrademark agalnsL respondenLs predecessor
lnlnLeresL 1he aLenL Cfflce dlsmlssed Lhe peLlLlons ordered Lhe
cancellaLlon of reglsLraLlon of peLlLloners Lrademark and gave due
course Lo respondenLs appllcaLlon for reglsLraLlon 1hls declslon was
susLalned by Lhe CourL of Appeals whlch declslon was noL elevaLed Lo us
and became flnal and
execuLory
3

Wolverlne clalmed LhaL whlle lLs prevlous peLlLlons were flled under 8A
no 166 Lhe 1rademark Law lLs subsequenL peLlLlon was based on a
new cause of acLlon l Lhe Cngpln Memorandum and LC no 913
lssued ln 1983 afLer flnallLy of Lhe prevlous declslon We held LhaL Lhe
sald Memorandum and LC dld noL granL a new cause of acLlon because
lL dld noL amend Lhe 1rademark Law nor dld lL lndlcaLe a new
pollcy wlLh respecL Lo Lhe reglsLraLlon ln Lhe hlllpplnes of worldfamous
Lrademarks
4
1hls concluslon was based on Lhe flndlng LhaL
Wolverlnes Lwo prevlous peLlLlons and subsequenL peLlLlon dealL wlLh
Lhe same lssue of ownershlp of Lhe Lrademark
S
ln oLher words slnce
Lhe flrsL and second cases lnvolved Lhe same lssue of ownershlp Lhen
Lhe flrsL case was a bar Lo Lhe second case
ln Lhe lnsLanL case Lhe lssue of ownershlp of Lhe Lrademark 8arblzon
was noL ralsed ln lC no 686 rlvaLe respondenLs opposlLlon Lhereln
was merely anchored on
(a) confuslng slmllarlLy of lLs Lrademark wlLh LhaL of
Lscobars
(b) LhaL Lhe reglsLraLlon of Lscobars slmllar Lrademark wlll
cause damage Lo prlvaLe respondenLs buslness repuLaLlon
and goodwlll and
(c) LhaL Lscobars use of Lhe Lrademark amounLs Lo an
unlawful approprlaLlon of a mark prevlously used ln Lhe
hlllpplnes whlch acL ls penallzed under SecLlon 4 (d) of Lhe
1rademark Law
ln lC no 2049 prlvaLe respondenLs opposlLlon seL forLh
several lssues summarlzed as follows
(a) as early as 1933 lL adopLed Lhe word
8A88lZCn as Lrademark on lLs producLs such as
robes pa[amas llngerle nlghLgowns and sllps
(b) LhaL Lhe Lrademark 8A88lZCn was reglsLered
wlLh Lhe unlLed SLaLes aLenL Cfflce ln 1934 and
1949 and LhaL varlaLlons of Lhe same
Lrademark l 8A88lZCn wlLh 8ee deslgn and
8A88lZCn wlLh Lhe represenLaLlon of a woman
were also reglsLered wlLh Lhe uS aLenL Cfflce ln
1961 and 1976
(c) LhaL Lhese marks have been ln use ln Lhe
hlllpplnes and ln many counLrles all over Lhe world
for over forLy years 8arblzon producLs have been
adverLlsed ln lnLernaLlonal publlcaLlons and Lhe
marks reglsLered ln 36 counLrles worldwlde
(d) Lscobars reglsLraLlon of Lhe slmllar Lrademark
8A88lZCn ln 1974 was based on fraud and Lhls
fraudulenL reglsLraLlon was cancelled ln 1979
sLrlpplng Lscobar of whaLsoever rlghL she had Lo
Lhe sald mark
(e) rlvaLe respondenLs Lrademark ls enLlLled Lo
proLecLlon as a wellknown mark under ArLlcle
6bls of Lhe arls ConvenLlon LxecuLlve Crder no
913 and Lhe Lwo Memoranda daLed november 20
1980 and CcLober 23 1983 of Lhe MlnlsLer of 1rade
and lndusLry Lo Lhe ulrecLor of aLenLs
(f) Lscobars Lrademark ls ldenLlcal Lo prlvaLe
respondenLs and lLs use on Lhe same class of goods
as Lhe laLLers amounLs Lo a vlolaLlon of Lhe
1rademark Law and ArLlcle 189 of Lhe 8evlsed enal
Code
lC no 2049 ralsed Lhe lssue of ownershlp of Lhe Lrademark Lhe flrsL
reglsLraLlon and use of Lhe Lrademark ln Lhe unlLed SLaLes and oLher
counLrles and Lhe lnLernaLlonal recognlLlon and repuLaLlon of Lhe
Lrademark esLabllshed by exLenslve use and adverLlsemenL of prlvaLe
respondenLs producLs for over forLy years here and abroad 1hese are
dlfferenL from Lhe lssues of confuslng slmllarlLy and damage ln lC no
686 1he lssue of prlor os may have been ralsed ln lC no 686 buL Lhls
clalm was llmlLed Lo prlor use ln Lhe hlllpplnes only rlor use ln lC no
2049 sLems from prlvaLe respondenLs clalm as lqlot of Lhe word
and symbol 8arblzon

as Lhe flrsL and reglsLered user of Lhe mark


aLLached Lo lLs producLs whlch have been sold and adverLlsed worldwlde
for a conslderable number of years prlor Lo peLlLloners flrsL appllcaLlon
for reglsLraLlon of her Lrademark ln Lhe hlllpplnes lndeed Lhese are
subsLanLlal allegaLlons LhaL ralsed new lssues and necessarlly gave
prlvaLe respondenL a new cause of acLlon s joJlcoto does noL apply Lo
rlghLs clalms or demands alLhough growlng ouL of Lhe same sub[ecL
maLLer whlch consLlLuLe separaLe or dlsLlncL causes of acLlon and were
noL puL ln lssue ln Lhe former acLlon


8espondenL corporaLlon also lnLroduced ln Lhe second case a facL LhaL
dld noL exlsL aL Lhe Llme Lhe flrsL case was flled and LermlnaLed 1he
cancellaLlon of peLlLloners cerLlflcaLe of reglsLraLlon for fallure Lo flle Lhe
affldavlL of use arose only afLer lC no 686 lL dld noL and could noL
have occurred ln Lhe flrsL case and Lhls gave respondenL anoLher cause
Lo oppose Lhe second appllcaLlon s joJlcoto exLends only Lo facLs and
condlLlons as Lhey exlsLed aL Lhe Llme [udgmenL was rendered and Lo Lhe
legal rlghLs and relaLlons of Lhe parLles flxed by Lhe facLs so
deLermlned
8
When new facLs or condlLlons lnLervene before Lhe
second sulL furnlshlng a new basls for Lhe clalms and defenses of Lhe
parLles Lhe lssues are no longer Lhe same and Lhe former [udgmenL
cannoL be pleaded as a bar Lo Lhe subsequenL acLlon
9

lL ls also noLed LhaL Lhe opposlLlons ln Lhe flrsL and second cases are
based on dlfferenL laws 1he opposlLlon ln lC no 686 was based on
speclflc provlslons of Lhe 1rademark Law l SecLlon 4 (d)
0
on
confuslng slmllarlLy of Lrademarks and SecLlon 8
1
on Lhe requlslLe
damage Lo flle an opposlLlon Lo a peLlLlon for reglsLraLlon 1he
opposlLlon ln lC no 2049 lnvoked Lhe arls ConvenLlon parLlcularly
ArLlcle 6bls Lhereof LC no 913 and Lhe Lwo Memoranda of Lhe
MlnlsLer of 1rade and lndusLry 1hls opposlLlon also lnvoked ArLlcle 189
of Lhe 8evlsed enal Code whlch ls a sLaLuLe LoLally dlfferenL from Lhe
1rademark Law
2
Causes of acLlon whlch are dlsLlncL and lndependenL
from each oLher alLhough arlslng ouL of Lhe same conLracL LransacLlon
or sLaLe of facLs may be sued on separaLely recovery on one belng no
bar Lo subsequenL acLlons on oLhers
3
1he mere facL LhaL Lhe same
rellef ls soughL ln Lhe subsequenL acLlon wlll noL render Lhe [udgmenL ln
Lhe prlor acLlon operaLlve as s joJlcoto such as where Lhe Lwo acLlons
are based on dlfferenL sLaLuLes
4
s joJlcoto Lherefore does noL apply
Lo Lhe lnsLanL case and respondenL CourL of Appeals dld noL err ln so
rullng
lnLellecLual and lndusLrlal properLy rlghLs cases are noL slmple properLy
cases 1rademarks deal wlLh Lhe psychologlcal funcLlon of symbols and
Lhe effecL of Lhese symbols on Lhe publlc aL large
S
1rademarks play a
slgnlflcanL role ln communlcaLlon commerce and Lrade and serve
valuable and lnLerrelaLed buslness funcLlons boLh naLlonally and
lnLernaLlonally lor Lhls reason all agreemenLs concernlng lndusLrlal
properLy llke Lhose on Lrademarks and Lradenames are lnLlmaLely
connecLed wlLh economlc developmenL

lndusLrlal properLy
encourages lnvesLmenLs ln new ldeas and lnvenLlons and sLlmulaLes
creaLlve efforLs for Lhe saLlsfacLlon of human needs 1hey speed up
Lransfer of Lechnology and lndusLrlallzaLlon and Lhereby brlng abouL
soclal and economlc progress

1hese advanLages have been


acknowledged by Lhe hlllpplne governmenL lLself 1he lnLellecLual
roperLy Code of Lhe hlllpplnes declares LhaL an effecLlve lnLellecLual
and lndusLrlal properLy sysLem ls vlLal Lo Lhe developmenL of domesLlc
and creaLlve acLlvlLy faclllLaLes Lransfer of Lechnology lL aLLracLs forelgn
lnvesLmenLs and ensures markeL access for our producLs
8
1he
lnLellecLual roperLy Code Look effecL on !anuary 1 1998 and by lLs
express provlslon
9
repealed Lhe 1rademark Law
80
Lhe aLenL
Law
81
ArLlcles 188 and 189 of Lhe 8evlsed enal Code Lhe uecree on
lnLellecLual roperLy
82
and Lhe uecree on Compulsory 8eprlnLlng of
lorelgn 1exLbooks
83
1he Code was enacLed Lo sLrengLhen Lhe
lnLellecLual and lndusLrlal properLy sysLem ln Lhe hlllpplnes as
mandaLed by Lhe counLrys accesslon Lo Lhe AgreemenL LsLabllshlng Lhe
World 1rade CrganlzaLlon (W1C)
84

1he W1C ls a common lnsLlLuLlonal framework for Lhe conducL of Lrade
relaLlons among lLs members ln maLLers relaLed Lo Lhe mulLllaLeral and
plurllaLeral Lrade agreemenLs annexed Lo Lhe W1C AgreemenL
8S
1he
W1C framework ensures a slngle underLaklng approach Lo Lhe
admlnlsLraLlon and operaLlon of all agreemenLs and arrangemenLs
aLLached Lo Lhe W1C AgreemenL Among Lhose annexed ls Lhe
AgreemenL on 1rade8elaLed AspecLs of lnLellecLual roperLy 8lghLs or
18ls
8
Members Lo Lhls AgreemenL deslre Lo reduce dlsLorLlons and
lmpedlmenLs Lo lnLernaLlonal Lrade Laklng lnLo accounL Lhe need Lo
promoLe effecLlve and adequaLe proLecLlon of lnLellecLual properLy
rlghLs and Lo ensure LhaL measures and procedures Lo enforce
lnLellecLual properLy rlghLs do noL Lhemselves become barrlers Lo
leglLlmaLe Lrade 1o fulflll Lhese ob[ecLlves Lhe members have agreed
Lo adhere Lo mlnlmum sLandards of proLecLlon seL by several
ConvenLlons
8
1hese ConvenLlons are Lhe 8erne ConvenLlon for Lhe
roLecLlon of LlLerary and ArLlsLlc Works (1971) Lhe 8ome ConvenLlon or
Lhe lnLernaLlonal ConvenLlon for Lhe roLecLlon of erformers
roducers of honograms and 8roadcasLlng CrganlsaLlons Lhe 1reaLy on
lnLellecLual roperLy ln 8especL of lnLegraLed ClrculLs oJ tb lols
ctl (1967) as revlsed ln SLockholm on !uly 14 1967
88

A ma[or proporLlon of lnLernaLlonal Lrade depends on Lhe proLecLlon of
lnLellecLual properLy rlghLs
89
Slnce Lhe laLe 1970s Lhe unauLhorlzed
counLerfelLlng of lndusLrlal properLy and Lrademarked producLs has had
a conslderable adverse lmpacL on domesLlc and lnLernaLlonal Lrade
revenues
90
1he 18ls AgreemenL seeks Lo granL adequaLe proLecLlon of
lnLellecLual properLy rlghLs by creaLlng a favorable economlc
envlronmenL Lo encourage Lhe lnflow of forelgn lnvesLmenLs and
sLrengLhenlng Lhe mulLllaLeral Lradlng sysLem Lo brlng abouL economlc
culLural and Lechnologlcal lndependence
91

1he hlllpplnes and Lhe unlLed SLaLes of Amerlca have acceded Lo Lhe
W1C AgreemenL 1hls AgreemenL has revoluLlonlzed lnLernaLlonal
buslness and economlc relaLlons among sLaLes and has propelled Lhe
world Lowards Lrade llberallzaLlon and economlc
globallzaLlon
92
roLecLlonlsm and lsolaLlonlsm belong Lo Lhe pasL 1rade
ls no longer conflned Lo a bllaLeral sysLem 1here ls now a new era of
global economlc cooperaLlon reflecLlng Lhe wldespread deslre Lo
operaLe ln a falrer and more open mulLllaLeral Lradlng
sysLem
93
Conformably Lhe SLaLe musL reafflrm lLs commlLmenL Lo Lhe
global communlLy and Lake parL ln evolvlng a new lnLernaLlonal
economlc order aL Lhe dawn of Lhe new mlllenlum
ln vlLW WPL8LCl Lhe peLlLlon ls denled and Lhe ueclslon and
8esoluLlon of Lhe CourL of Appeals ln CAC8 S no 28413 are afflrmed
SC C8uL8Lu