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B74 Philip Morris Inc. v. Court of Appeals, GR 91332, 16 July 1993, Third Division, Melo (J) - BAUTISTA PDF

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B74

Philip Morris, Inc., Benson & Hedges (Canada), Inc., and Fabriques of Tabac Reunies, S.A.,
vs. The Court of Appeals and Fortune Tobacco Corporation
G.R. No. 91332, Melo, July 16, 1993
Digested by: Bautista, Lenard

Facts:

Philip Morris, Incorporated is a corporation organized under the laws of the State of
Virginia, USA. The two other plaintiff foreign corporations are wholly-owned subsidiaries
of Philip Morris, Inc. As registered owners "MARK VII", "MARK TEN", and "LARK" per
certificates of registration issued by the Philippine Patent Office, plaintiffs-petitioners
asserted that defendant Fortune Tobacco Corporation has no right to manufacture and sell
cigarettes bearing the allegedly identical or confusingly similar trademark "MARK" in
contravention of Section 22 of the Trademark Law.

Private respondent Fortune Tobacco Corporation admitted petitioners' certificates of


registration with the Philippine Patent Office. The respondent alleged that it has been
authorized by the Bureau of Internal Revenue to manufacture and sell cigarettes bearing
the trademark "MARK", and that "MARK" is a common word which cannot be exclusively
appropriated. Also, the respondent pointed out that lots of workers employed will be laid
off as a consequence of an injunction, and that the government will stand to lose P120M
of specific taxes from January to July 1989.

Issue: Whether or not irreparable injury should be preceded by actual use of their
registered trademarks in commerce in the Philippines

Held: Yes. A fundamental principle of Philippine Trademark Law is that actual use in
commerce in the Philippines is a pre-requisite to the acquisition of ownership over a
trademark or a tradename. In fact, a prior registrant cannot claim exclusive use of the
trademark unless it uses it in commerce.

In view of the explicit representation of petitioners in the complaint that they are not
engaged in business in the Philippines, it inevitably follows that no conceivable damage
can be suffered by them not to mention the foremost consideration heretofore discussed
on the absence of their "right" to be protected.

The critical facts in an infringement case are not presented. Petitioners therefore, may not
be permitted to presume a given state of facts on their so called right to the trademarks
which could be subjected to irreparable injury and in the process, suggest the fact of
infringement. Such a ploy would practically place the cart ahead of the horse.

Dispositive Portion

The petition is hereby DISMISSED and the Resolutions of the Court of Appeals dated
September 14, 1989 and November 29, 1989 are hereby AFFIRMED.

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