Maguan vs. Court of Appeals

ROSARIO C. MAGUAN vs. COURT OF APPEALS G.R. L-45101, November 28, 1986, SECOND DIVISION, PARAS, J.
Petitioner Rosario C. Maguan is doing business under the firm name and style of SWAN MANUFACTURING" while private respondent Susana Luchan is likewise doing business under the firm name and style of "SUSANA LUCHAN POWDER PUFF MANUFACTURING." The petitioner informed private respondent that the powder puffs the latter is manufacturing and selling to various enterprises particularly those in the cosmetics industry, resemble identical or substantially identical powder puffs of which the former is a patent holder under Registration Certification Nos. Extension UM-109, Extension UM-110 and Utility Model No. 1184; petitioner explained such production and sale constitute infringement of said patents and therefore its immediate discontinuance is demanded, otherwise it will be compelled to take judicial action. Private respondent replied stating that her products are different and countered that petitioner's patents are void because the utility models applied for were not new and patentable and the person to whom the patents were issued was not the true and actual author nor were her rights derived from such author. Maguan filed a complaint for damages with injunction and preliminary injunction against Luchan with the then Court of First Instance of Rizal. The trial court issued an Order granting the preliminary injunction prayed for. Consequently, the corresponding writ was subsequently issued. It having denied the Motion for Reconsideration, the private respondent filed a petition for certiorari before the Court of Appeals. The Preliminary injunction issued by the trial court was affirmed by the CA but it later on dismissed the petition and set aside the preliminary injunction previously issued by the trial court. ISSUE: Whether Maguan has a right to file an action before the CFI for injunction due to infringement of her patent. HELD:
When a patent is sought to be enforced, the questions of invention, novelty or prior use, and each of them, are open to judicial examination.
Under the present Patent Law, there is even less reason to doubt that the trial court has jurisdiction to declare the patents in question invalid. A patentee shall have the exclusive right to make, use and sell the patented article or product and the making, using, or selling by any person without the authorization of the patentee constitutes infringement of the patent (Sec. 37, R.A. 165). Any patentee whose rights have been infringed upon may bring an action before the proper CFI now (RTC) and to secure an injunction for the protection of his rights (Sec. 42, R.A. 165). The burden of proof to substantiate a charge of infringement is with the plaintiff. But where the plaintiff introduces the patent in evidence, and the same is in due form, there is created a prima facie presumption of its correctness and validity. The decision of the Commissioner (now Director) of Patent in granting the patent is presumed to be correct. The burden of going forward with the evidence (burden of evidence) then shifts to the defendant to overcome by competent evidence this legal presumption. The question then in the instant case is whether or not the evidence introduced by private respondent herein is sufficient to overcome said presumption. Respondent Court of Appeals was satisfied that there is a prima facie showing of a fair question of invalidity of petitioner's patents on the ground of lack of novelty. As pointed out by said appellate court said evidence appeared not to have been considered at all by the court a quo for alleged lack of jurisdiction, on the mistaken notion that such question is within the exclusive jurisdiction of the patent office. It has been repeatedly held that an invention must possess the essential elements of novelty, originality and precedence and for the patentee to be entitled to protection, the invention must be new to the world. Accordingly, a single instance of public use of the invention by a patentee for more than two years (now for more than one year only under Sec. 9 of the Patent Law) before the date of his application for his patent, will be fatal to, the validity of the patent when issued.
SEC. 9. Invention not considered new or patentable. An invention shall not be considered new or capable of being patented if it was known or used by others in the Philippines before the invention thereof by the inventor named in an application for patent for the invention; or if it was patented or described in any printed publication in the Philippines or any foreign country more than one year before the application for a patent therefor; or if it had been in public use or on sale in the Philippines for more than one year before the application for a patent therefor; or if it is the
subject matter of a validity issued patent in the Philippines granted on an application filed before the filing of the application for patent therefor.
Thus, more specifically, under American Law from which our Patent Law was derived it is generally held that in patent cases a preliminary injunction will not issue for patent infringement unless the validity of the patent is clear and beyond question. The issuance of letters patent, standing alone, is not sufficient to support such drastic relief. In cases of infringement of patent no preliminary injunction will be granted unless the patent is valid and infringed beyond question and the record conclusively proves the defense is sham. For failure to determine first the validity of the patents before aforesaid issuance of the writ, the trial court failed to satisfy the two requisites necessary if an injunction is to issue, namely: the existence of the right to be protected and the violation of said right.

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ROSARIO C. MAGUAN vs. COURT OF APPEALS G.R. L-45101, November 28, 1986, SECOND DIVISION, PARAS, J.

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