L-78325 January 25, 1990 whereas unfair competition is the
passing off of one's goods as those of DEL MONTE CORPORATION and PHILIPPINE PACKING another. CORPORATION, petitioners, vs. (2) In infringement of trademark COURT OF APPEALS and SUNSHINE SAUCE fraudulent intent is unnecessary MANUFACTURING INDUSTRIES, respondents. whereas in unfair competition fraudulent intent is essential. Bito, Misa & Lozada for petitioners. Reynaldo F. Singson for private respondent. (3) In infringement of trademark the prior registration of the trademark is a CRUZ, J.: prerequisite to the action, whereas in unfair competition registration is not Petitioner Del Monte Corporation is a foreign company necessary. 8 organized under the laws of the United States and not engaged in business in the Philippines. Both the Philippines It has been correctly held that side-by-side comparison is and the United States are signatories to the Convention of not the final test of similarity. 10 Such comparison requires a Paris, which grants to the nationals of the parties rights and careful scrutiny to determine in what points the labels of the advantages which their own nationals enjoy for the products differ, as was done by the trial judge. The ordinary repression of acts of infringement and unfair competition. buyer does not usually make such scrutiny nor does he usually have the time to do so. The average shopper is Petitioner Philippine Packing Corporation (Philpack) is a usually in a hurry and does not inspect every product on the domestic corporation duly organized under the laws of the shelf as if he were browsing in a library. Where the Philippines. On April 1969, Del Monte granted Philpack the housewife has to return home as soon as possible to her right to manufacture, distribute and sell in the Philippines baby or the working woman has to make quick purchases various agricultural products, including catsup, under the during her off hours, she is apt to be confused by similar Del Monte trademark and logo. labels even if they do have minute differences. The male shopper is worse as he usually does not bother about such On October 1965, Del Monte authorized Philpack to register distinctions. with the Philippine Patent Office the Del Monte catsup bottle configuration, for which it was granted Certificate of We also note that the respondent court failed to take into Trademark Registration by the Philippine Patent Office consideration several factors which should have affected its under the Supplemental Register. On November 1972, Del conclusion, to wit: age, training and education of the usual Monte also obtained two registration certificates for its purchaser, the nature and cost of the article, whether the trademark "DEL MONTE" and its logo. article is bought for immediate consumption and also the conditions under which it is usually purchased . 21Among Respondent Sunshine Sauce Manufacturing Industries was these, what essentially determines the attitude of the issued a Certificate of Registration by the Bureau of purchaser, specifically his inclination to be cautious, is the Domestic Trade to engage in the manufacture, packing, cost of the goods. To be sure, a person who buys a box of distribution and sale of various kinds of sauce, identified by candies will not exercise as much care as one who buys an the logo Sunshine Fruit Catsup. expensive watch. As a general rule, an ordinary buyer does not exercise as much prudence in buying an article for This logo was registered in the Supplemental Register on which he pays a few centavos as he does in purchasing a September 1983. more valuable thing. 22 Expensive and valuable items are normally bought only after deliberate, comparative and The product itself was contained in various kinds of bottles, analytical investigation. But mass products, low priced including the Del Monte bottle, which the private respondent articles in wide use, and matters of everyday purchase bought from the junk shops for recycling. requiring frequent replacement are bought by the casual consumer without great care. 23 In this latter category is Having received reports that the private respondent was catsup. using its exclusively designed bottles and a logo confusingly similar to Del Monte's, Philpack warned it to At that, even if the labels were analyzed together it is not desist from doing so on pain of legal action. Thereafter, difficult to see that the Sunshine label is a colorable claiming that the demand had been ignored, Philpack and imitation of the Del Monte trademark. The predominant Del Monte filed a complaint against the private respondent colors used in the Del Monte label are green and red- for infringement of trademark and unfair competition. orange, the same with Sunshine. The word "catsup" in both bottles is printed in white and the style of the print/letter is In its answer, Sunshine alleged that it had long ceased to the same. Although the logo of Sunshine is not a tomato, use the Del Monte bottle and that its logo was substantially the figure nevertheless approximates that of a tomato. different from the Del Monte logo and would not confuse the buying public to the detriment of the petitioners. It can be inferred from the foregoing that although Del Monte has actual use of the bottle's configuration, the After trial, the Regional Trial Court of Makati dismissed the petitioners cannot claim exclusive use thereof because it complaint. has not been registered in the Principal Register. However, we find that Sunshine, despite the many choices available This decision was affirmed in toto by the respondent court. to it and notwithstanding that the caution "Del Monte Corporation, Not to be Refilled" was embossed on the bottle, still opted to use the petitioners' bottle to market a product which Philpack also produces. This clearly shows RULING the private respondent's bad faith and its intention to capitalize on the latter's reputation and goodwill and pass To arrive at a proper resolution of this case, it is off its own product as that of Del Monte. important to bear in mind the following distinctions between infringement of trademark and unfair As Sunshine's label is an infringement of the Del Monte's competition. trademark, law and equity call for the cancellation of the private respondent's registration and withdrawal of all its (1) Infringement of trademark is the products bearing the questioned label from the market. With unauthorized use of a trademark, regard to the use of Del Monte's bottle, the same constitutes unfair competition; hence, the respondent should be permanently enjoined from the use of such bottles.
The court must rule, however, that the damage prayed for cannot be granted because the petitioner has not presented evidence to prove the amount thereof.
Accordingly, the Court can only award to the petitioners, as
it hereby does award, nominal damages in the amount of Pl,000.00.
G.R. No. 112012 April 4, 2001 Societe Des Produits Nestle, S.A. and Nestle Philippines, INC., Petitioners, COURT OF APPEALS and CFC CORPORATION., Respondents. Ynares-Santiago, J.