PUMA v IAC FACTS:
On February 8, 1984, the petitioner, a foreign corporation organized and existing under the laws of the United tates, brought a petition before the !hilippine !atent Office the cancellation of "ertificate of #egistration of the trade$ar% &U& !U!!'( and )O* )(+'"( issued to the priate respondent, a Filipino citizen- 'n support of its petition for cancellation, the petitioner alleged, inter alia, that it is the registrant of the internationally %nown trade$ar% &U& !U!!'( and the )(+'"( of a )og in the United tates and in other countries which are $e$bers of the !aris "onention for the !rotection of 'ndustrial !roperty, that the goods sold by the priate respondent, on the one hand, and by the petitioner, on the other hand, belong to the sa$e class such that the priate respondent.s use of the sa$e trade$ar% in the !hilippines /which is a $e$ber of said !aris "onention0 in connection with the goods he sells constitutes an act of unfair co$petition, as denied in the !aris "onention- ubseuently, the priate respondent $oed to dis$iss the petition on the ground of res 2udicata, aerring that in 193, or $ore than ten years before this petition was filed, the sa$e petitioner filed two petitions for cancellation, all of which inoled the trade$ar% &U& !U!!'( and )(+'"(, before the !hilippine !atent Office- 5he )irector of !atents had ruled in all three inter parties cases in faor of the priate respondent.s predecessor6in6interest- 5he "7 affir$ed these decisions- "onseuently, the )irector of !atents denied the petition for cancellation- On appeal, the "ourt of 7ppeals at first set aside the )irector.s decision, howeer, upon reconsideration the latter was reied-
ISSUE: HELD:
's the present petition for cancellation barred by res 2udicata
es- 5he "ourt has repeatedly held that for a 2udg$ent to be a bar to a subseuent case, the following reuisites $ust concur: /10 it $ust be a final 2udg$ent /;0 the court which rendered it had 2urisdiction oer the sub2ect $atter and the parties /0 it $ust be a 2udg$ent on the $erits and /40 there $ust be 'dentity between the two cases, as to parties, sub2ect $atter, and cause of action- "ontrary to the petitioner.s assertion, the 2udg$ent in the preious cases inoling respondent.s trade$ar% registration had long since beco$e final and executor- 5hat ec- 13 of #epublic 7ct 1<<, also %nown as the 5rade$ar% =aw, allows the cancellation of a registered trade$ar% is not a alid pre$ises for the petitioner.s proposition that a decision granting registration of a trade$ar% cannot be i$bued with the character of absolute finality as is reuired in res 2udicata- 7 2udg$ent or order is final, as to gie it the authority of res 2udicata, if it can no longer be $odified by the court issuing it or by an y other court- 'n the case at bar, the decision of the "ourt of 7ppeals affir$ing that of the )irector of !atents, in the cancellation cases filed in 193, was neer appealed to us-
THIRD DIVISION [G.R. No. 75067. February 26, 1988.] !"# SORTS$H!HF#%RI&'N R!DO(F D#SS('R, &.G., Petitioner , ). TH' INT'R"'DI#T' #'((#T' $O!RT a*+ "I(ORO "#N!F#$T!RING $OROR#TION,Respondents.
S-((#%!S
1. REMEDIAL LAW; CIVIL ACTIONS; LEGAL CAPACITY TO SUE; A FOREIGN CORPORATION NOT DOING BUSINESS IN THE PHILIPPINE CAN SUE IN PHILIPPINE COURT FOR INFRINGEMENT. — In the le!"n# $%e &' L Che("%e L$&%te) S.A. *. Fe+nn!e,) -1/ SCRA 002) 3e +4le!5 6B4t e*en %%4("n# the t+4th &' the 7+"*te +e%7&n!ent8% lle#t"&n tht the 7et"t"&ne+ '"le! t& lle#e ( te+"l '$t% "n "t% 7et"t"&n +elt"*e t& $7$"t9 t& %4e) the 7et"t"&ne+ (9 %t"ll ("nt"n the 7+e%ent %4"t #"n%t +e%7&n!ent He(n!%. A% e+l9 % 1/) th"% C&4+t 3%) n! "t %t"ll "%) &' the *"e3 tht '&+e"#n $&+7&+t"&n n&t !&"n# :4%"ne%% "n the Ph"l"77"ne% nee!% n& l"$en%e t& %4e :e'&+e Ph"l"77"ne $&4+t% '&+ "n'+"n#e(ent &' t+!e(+ n! 4n'"+ $&(7et"t"&n.6 In the $%e &' C&n*e+%e R4::e+ C&+7&+t"&n *. Un"*e+%l R4::e+ P+&!4$t%) In$. -1< SCRA 1=>2) 3e l"e3"%e +e?''"+(e! &4+ !he+en$e t& the P+"% C&n*ent"&n5 6The +4l"n# "n the '&+e$"te! $%e "% "n $&n%&nn$e 3"th the C&n*ent"&n &' the Un"&n &' P+"% '&+ the P+&te$t"&n &' In!4%t+"l P+&7e+t9 t& 3h"$h the Ph"l"77"ne% :e$(e 7+t9 &n Se7te(:e+ ) 1/=>. A+t"$le @ the+e&' 7+&*"!e% tht t+!e n(e $&+7&+t"&n n(e %hll :e 7+&te$te! "n ll the $&4nt+"e% &' the Un"&n 3"th&4t the &:l"#t"&n &' '"l"n# &+ +e#"%t+t"&n) 3hethe+ &+ n&t "t '&+(% 7+t &' the t+!e(+.8 . ID.; ID.; MOTION TO DISMISS; LIS PENDENS; PRINCIPLE NOT APPLICABLE TO I N ADMINISTRATIVE CASES. — I(7&+tnt "% the '$t tht '&+ l"% 7en!en% t& :e *l"! #+&4n! '&+ the !"%("%%l &' $%e) the &the+ $%e 7en!"n# :et3een the %(e 7+t"e% n! h*"n# the %(e $4%e (4%t :e $&4+t $t"&n. Un!e+ %e$t"&n 1-!2) R4le 1= -'&+(e+l9 R4le @2 &' the R4le% &' C&4+t) &ne &' the #+&4n!% '&+ the !"%("%%l &' n $t"&n "% tht the+e "% n&the+ $t"&n 7en!"n# :et3een the %(e 7+t"e% '&+ the %(e $4%e.8 N&te tht the R4le 4%e% the 7h+%e n&the+ $t"&n.8 Th"% 7h+%e %h&4l! :e $&n%t+4e! "n l"ne 3"th Se$t"&n 1 &' R4le ) 3h"$h !e'"ne% the 3& +! $t"&n th4% —6 A$t"&n (en% n &+!"n+9 %4"t "n $&4+t &' 4%t"$e) :9 3h"$h &ne 7+t9 7+&%e$4te% n&the+ '&+ the en'&+$e(ent &+ 7+&te$t"&n &' +"#ht) &+ the 7+e*ent"&n &+ +e!+e%% &' 3+&n#. E*e+9 &the+ +e(e!9 "% %7e$"l 7+&$ee!"n#.86 6It "%) the+e'&+e) *e+9 $le+ tht the B4+e4 &' Ln! "% n&t $&*e+e! 4n!e+ the '&+e(ent"&ne! 7+&*"%"&n% &' the R4le% &' C&4+t.6 Th4%) the C&4+t &' A77el% l"e3"%e e++e! "n h&l!"n# tht the +e4"%"te% &' l"% 7en!en% 3e+e 7+e%ent %& % t& 4%t"'9 the !"%("%%l & ' the $%e :el&3.
0. ID.; PROVISIONAL REMEDIES; PRELIMINARY INUNCTION; ISSUANCE THEREOF IN I NFRINGEMENT CASES) UPHELD. — A% +e#+!% the 7+&7+"et9 &' the "%%4n$e &' the 3+"t &' 7+el"("n+9 "n4n$t"&n) the +e$&+!% %h&3 tht he+e"n 7+"*te +e%7&n!ent 3% #"*en the &77&+t4n"t9 t& 7+e%ent "t% $&4nte+?e*"!en$e #"n%t the "%%4n$e the+e&' :4t "t "ntent"&nll9 +e'4%e! t& !& %& t& :e $&n%"%tent 3"th "t% the&+9 tht the $"*"l $%e %h&4l! :e !"%("%%e! "n the '"+%t 7l$e. C&n%"!e+"n# the '$t tht 6PUMA6 "% n "nte+nt"&nll9 n&3n :+n! n(e) "t "% 7e+t"nent t& +e"te+te the !"+e$t"*e t& l&3e+ $&4+t%) 3h"$h e4ll9 77l"e% t& !("n"%t+t"*e #en$"e%. 4!#e% ll &*e+ the $&4nt+9 +e 3ell !*"%e! t& +e(e(:e+ tht $&4+t 7+&$e%%e% %h&4l! n&t :e 4%e! % "n%t+4(ent% t&) 4n3"tt"n#l9 &+ & the+3"%e) "! $&4nte+'e"te+% n! "ntelle$t4l 7"+te%) t"e the hn!% &' the l3 % "t %ee% t& 7+&te$t the F"l"7"n& $&n%4("n# 74:l"$ n! '+4%t+te ee$4t"*e n! !("n"%t+t"*e "(7le(entt"&n &' %&le(n $&(( "t(ent% 74+%4nt t& "nte+nt"&nl $&n*ent"&n% n! t+et"e%.6 -L Che("%e L$&%te) S.A. *. Fe+nn!e,) %47+2
D'$ISION
G!TI'RR', /R., J.
Th"% "% 7et"t"&n '&+ +e*"e3 :9 39 &'
&' certiorari
the C&4+t &' A77el%8 !e$"%"&n 3h"$h +e*e+%e! the
&+!e+ &' the Re#"&nl T+"l C&4+t n! !"%("%%e! the $"*"l $%e '"le! :9 the 7et"t"&ne+ &n the #+&4n!% &' l"t"% 7en!ent" n! l$ &' le#l $7$"t9 t& %4e. On 4l9 >) 1/@>) the 7et"t"&ne+) '&+e"#n $&+7&+t"&n !4l9 &+# n",e! n! e"%t"n# 4n!e+ the l3% &' the Fe!e+l Re74:l"$ &' Ge+(n9 n! the (n4'$t4+e+ n! 7+&!4$e+ &' 6PUMA PRODUCTS)6 ' "le! $&(7l"nt '&+ "n'+"n#e(ent &' 7tent &+ t+!e(+ 3"th 7+9e+ '&+ the "%%4n$e &' 3+"t &' 7+el"("n+9 "n4n$t"&n #"n%t the 7+"*te +e%7&n!ent :e'&+e the Re#"&nl T+"l C&4+t &' Mt". P+"&+ t& the '"l"n# &' the %"! $"*"l %4"t) th+ee $%e% 3e+e 7en!"n# :e'&+e the Ph"l"77"ne Ptent O''"$e) n(el95
#$5$hn+&:le%.$&( .7h
6Inte+ P+te% C%e N&. 1>/ ent"tle! PUMA SPORTSCHUHFABRIEN *. MIL?ORO MANUFACTURING CORPORATION) +e%7&n!ent?77l"$nt)8 3h"$h "% n &77&%"t"&n t& the +e#"%t+t"&n &' 7et"t"&ne+8% t+!e(+ PUMA n! DEVICE8 "n the PRINCIPAL REGISTER; 6Inte+ P+te% C%e N&. 1=> %"("l+l9 ent"tle!) PUMA SPORTSCHUHFABRIEN RUDOLF DASSLER) G.)
) Petitioner
*e+%4% MIL?ORO MANUFACTURING CORPORATION) +e%7&n!ent?+e#"%t+nt)8 3h"$h "%
$%e '&+ the $n$ellt"&n &' the t+!e(+ +e#"%t+t"&n &' the 7et"t"&ne+; n! 6Inte+ P+te% C%e N&. 1/<> l%& :et3een the %(e 7 +t"e% th"% t"(e the 7et"t"&ne+ 7+9"n# '& + the $n$ellt"&n &' 7+"*te +e%7&n!ent8% Ce+t"'"$te &' Re#"%t+t"&n N&. =@> -77. >) R&ll&26 -77. >1?>) R&ll&2.
On 4l9 01) 1/@>) the t+"l $&4+t "%%4e! te( 7&++9 +e%t+"n"n# &+!e+) +e%t+"n"n# the 7+"*te +e%7&n!ent n! the D"+e$t&+ &' Ptent% '+&( 4%"n# the t+!e(+ 6PUMA6 &+ n9 +e7+&!4$t"&n) $&4nte+'e"t $&79 &+ $&l&+:le "("tt"&n the+e&') n! t& 3"th!+3 '+&( the (+et ll 7+&!4$t% :e+"n# the %(e t+!e(+. On A4#4%t /) 1/@>) the 7+"*te +e%7&n!ent '"le! (&t"&n t& !"%("%% &n the #+&4n!% tht the 7et"t"&ne+%8 $&(7l"nt %tte% n& $4%e &' $t"&n) 7et"t"&ne+ h% n& le#l 7e+%&nl"t9 t& %4e) n! l"t"% 7en!ent". On A4#4%t 1/) 1/@>) the t+"l $&4+t !en"e! the (&t"&n t& !"%("%% n! t the %(e t"(e #+nte! the 7et"t"&ne+8% 77l"$t"&n '&+ 3+"t &' "n4n$t"&n. The 7+"*te +e%7&n!ent% 77ele! t& the C&4+t &' A77el%. On 4ne 0) 1/@=) the C&4+t &' A77el% +e*e+%e! the &+!e+ &' the t+"l $&4+t n! &+!e+e! the +e%7&n!ent 4!#e t& !"%("%% the $"*"l $%e '"le! :9 the 7et"t"&ne+. In +e*e+%"n# the &+!e+ &' the t+"l $&4+t) the C&4+t &' A77el% +4le! tht the +e4"%"te% &' l"% 7en!en% % #+&4n! '&+ the (&t"&n t& !"%("%% h*e :een (et. It %"!5
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6O:*"&4%l9) the 7+t"e% +e "!ent"$l. The9 +e the %(e 7+&t#&n"%t%. A% t& the %e$&n! +e4"%"te) 3h"$h "% "!ent"t9 &' +"#ht% n! +el"e'% 7+9e! '&+) :&th %"!e% ("nt"n tht the9 +e the +"#ht'4l &3ne+% &' the t+!e(+ PUMA8 '&+ %&$% n! :elt%) %4$h tht :&th 7+t"e% %ee the $n$ellt"&n &' the t+!e(+ &' the &the+ -%ee 7+9e+ "n 7 +"*te +e%7&n!ent8% $&(7l"nt) 77. >>>) R&ll&) Anne 6A6 t& the Pet"t"&n2. Ine*"t:l9) "n e"the+ the l&3e+ $&4+t &+ "n the Ptent O''"$e) the+e "% nee! t& +e%&l*e the "%%4e % t& 3h& "% the +"#ht'4l &3ne+ &' the TRADEMAR PUMA8 '&+ %&$% n! :elt%. A'te+ ll) the +"#ht t& +e#"%te+ t+!e(+ (4%t :e :%e! &n &3ne+%h"7 the+e&' -O7e+t&+% I n$. *. D"+e$t&+ &' Ptent%) L? 1/1J) J$t) /) 1/=>) 1> SCRA 1<2. J3ne+%h"7 &' the t+!e(+ "% n e%%ent"l +e4"%"te t& :e 7+&*e! :9 the 77l"$nt e"the+ "n $n$ellt"&n $%e &+ "n %4"t '&+ "n'+"n#e(ent &' t+!e(+. The +el"e' 7+9e! '&+ :9 the 7+t"e% "n Inte+ P+te% C%e% N&%. 1>/) 1=> n! 1/<> n! C"*"l C%e N&. 111@/ :e'&+e +e%7&n!ent $&4+t %ee ' &+ the $n$ellt"&n &' 4%4+7e+8% t+!e(+) n! the + "#ht &' the le#l &3ne+ t& h*e e$l4%"*e 4%e &' %"! t +!e(+. F+&( the t&tl"t9 &' the &:t"n"n# $"+$4(%tn$e%) the +"#ht% &' the +e%7e$t"*e 7+t"e% +e ! e7en!ent 47&n the +e%&l4t"&n &' %"n#le "%%4e) tht "%) the +"#ht'4l &3ne+%h"7 &' the t+!e(+ "n 4e%t"&n. The %e$&n! +e4"%"te nee!e! t& 4%t"'9 (&t"&n t& !"%("%% :%e! &n l"% 7en!en% "% 7+e%ent. 6A% t& the th"+! +e4"%"te) the !e$"%"&n% n! &+!e+% &' !("n"%t+t"*e #en$"e% +en!e+e! 74+%4nt t& the"+ 4%"?4!"$"l 4th&+"t9 h*e 47&n the"+ '"nl"t9 the $h+$te+ &' +e% 4!"$t -B+"ll"nte% *. C%t+&) // Ph"l. 2. The +4le 3h"$h '&+:"!% the +e?&7en"n# &' (tte+ &n$e 4!"$"ll9 !ete+("ne! :9 $&(7etent 4th&+"t9 77l"e% % 3ell t& 4!"$"l $t% &' 74:l"$ ee$4t"*e n! !("n"%t+t"*e &''"$e+% n! :&+!% $t"n# 3"th"n the"+ 4+"%!"$t"&n % t& the 4!#(ent% &' C&4+t% h*"n# #ene+l 4!"$"l 7&3e+% -B+"ll"nte% *. C%t+&) %47+2. It (9 :e +e$lle! tht the +e%&l4t"&n n! !ete+("nt"&n &' the "%%4e &n &3ne+%h"7 +e :&th 3"th"n the 4+"%!"$t"&n &' the D"+e$t&+ &' Ptent% n! the Re#"&nl T+"l C&4+t -Se$. >) R.A. 1==2. It 3&4l! th4% :e $&n'4%"n# '&+ t3& -2 !"''e+ent '&+4(% t& he+ the %(e $%e n!
+e%&l*e ("n n! !ete+("nt"*e "%%4e 3"th :&th '&+4(% +"%"n# the 7&%%":"l"t9 &' ++"*"n# t !"''e+ent $&n$l4%"&n%. In the $&n%t+4$t"&n &' l3% n! %tt4te% +e#+!"n# 4+"%!"$t"&n) &ne (4%t "nte+7+et the( "n $&(7le(ent+9 (nne+ '&+ "t "% 7+e%4(e! tht the le#"%lt4+e !&e% n&t "nten! n9 :%4+!"t9 "n the l3% "t (e% -Stt4t&+9 C&n%t+4$t"&n) M+t"n) 7. 1002. Th"% "% 7+e$"%el9 the +e%&n 3h9 :&th !e$"%"&n% &' the D"+e$t&+ &' Ptent% n! Re#"&nl T+"l C&4+t +e 77el:le t& the Inte+(e!"te A77ellte C&4+t -Se$. /) BP 1/2) % :&th +e $&?e4l "n +n +e#+!"n# the $%e% tht (9 'll 3"th"n the"+ 4+"%!"$t"&n. 6The +e$&+! +e*el% tht &n M+$h 01) 1/@=) the Ph"l"77"ne Ptent O''"$e +en!e+e! !e$"%"&n "n Inte+ P+te% C%e% N&%. 1>/ n! 1=> 3he+e:9 "t $&n$l4!e! tht 7et"t"&ne+ "% the 7+"&+ n! $t4l !&7t&+ &' the t+!e(+ PUMA n! DEVICE8 4%e! &n %7&+t% %&$% n! :el t%) n! tht MIL?ORO CORPORATION "% the +"#ht'4l &3ne+ the+e&'. . . .6 -77. =?) CA — !e$"%"&n) 77. >1?>) R&ll&2. W"th +e#+! t& the 7et"t"&ne+8% le#l $7$"t9 t& %4e) the C&4+t &' A77el% l"e3"%e hel! tht "t h! n& %4$h $7$"t9 :e$4%e "t '"le! t& lle#e +e$"7+&$"t9 "n "t% $&(7l"nt5
#$5$hn+&:le%.$&( .7h
6A% t& 7+"*te +e%7&n!ent8% h*"n# n& le#l 7e+%&nl"t9 t& %4e) the +e$&+! !"%$l&%e% tht 7+ "*te +e%7&n!ent 3% %4"n# 4n!e+ Se$. 1?A &' Re74:l"$ A $t N&. 1==) % (en!e! -7. >J) Anne 6A6) Pet"t"&n2. Th"% "% the e$e7t"&n t& the #ene+l +4le tht '&+e"#n $&+7&+t"&n !&"n# :4%"ne%% "n the Ph"l"77"ne% (4%t %e$4+e l"$en%e t& !& : 4%"ne%% :e'&+e %"! '&+e"#n $&+7&+t"&n $&4l! ("n t"n $&4+t &+ !("n"%t+t"*e %4"t -Se$. 100) C&+7&+t"&n C&!e) "n +elt"&n t& Se$. 1?A) RA =0@) % (en!e!2. H&3e*e+) the+e +e %&(e $&n!"t"&n% 3h"$h (4%t :e (et :e'&+e tht e$e7t"&n $&4l! :e (!e t& 77l9) n(el95 -2 the t+!e(+ &' the %4"n# $&+7&+t"&n (4%t :e +e#"%te+e! "n the Ph"l"77"ne%) &+ tht "t :e the %%"#nee the+e&'5 n! -:2 tht the+e e"%t% +e$"7+&$l t+et(ent t& Ph"l"77 "ne C&+7&+t"&n% e"the+ :9 l3 &+ $&n*ent"&n :9 the $&4nt+9 &' &+"#"n &' the '&+e"#n $&+7&+t"&n -Se$. 1?A) T+!e(+ L32. Pet"t"&ne+ +e$n",e% tht 7+"*te +e%7&n!ent "% the h&l!e+ &' %e*e+l $e+t"'"$te% &' +e#"%t+t"&n) &the+3"%e) the '&+(e+ 3&4l! n& t h*e "n%t"t4te! $n$ellt"&n 7+&$ee!"n#% "n the Ptent8% O''"$e. Pet"t"&ne+ $t4ll9 ,e+&e% &n the %e$&n! +e4"%"te 7+&*"!e! :9 Se$t"&n 1?A &' the T+!e(+ L3 3h"$h "% the 7+"*te +e%7&n!ent8% '"l4+e t& lle#e +e$"7+&$"t9 "n the $&(7l"nt. . . .6
$+l3*"+t413l":++9
C"t"n# the $%e &' Le*"t&n I n!4%t+"e% *. Sl*!&+ -11< SCRA <J2) "t '4+the+ +4le!5
#$5$hn+&:le%.$&( .7h
6F"l4+e t& lle#e +e$"7+&$"t9) "t :e"n# n e%%ent"l '$t 4n!e+ the t+!e(+ l3 +e#+!"n# "t% $7$"t9 t& %4e :e'&+e the Ph"l"77"ne $&4+t%) "% 'tl t& the '&+e"#n $&+7&+t"&n%8 $4%e. The C&n$4++"n# O7"n"&n &' Ch"e' 4%t"$e A4"n& &n the %(e $%e "% (&+e e(7ht"$ 3hen he %"!5
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6 Re%7&n!ent Le*"t&n Mn4'$t4+"n# C&. In$.) lle#e! "n 7+. &' "t% $&(7l"nt '&+ 4n'"+ $&(7et"t"&n tht "t% $t"&n "% :e"n# '"le! 4n!e+ the 7+&*"%"&n% &' Se$t"&n 1?A &' Re74:l"$ A$t N&. 1==) % (en!e!.8 Re%7&n!ent "% :&4n! :9 the lle#t"&n "n "t% $&(7l"nt. It $nn&t %4e 4n!e+ Se$t"&n 1?A :e$4%e "t h% n&t $&(7l"e! 3"th the +e4"+e(ent% he+e&' tht -12 "t% t+!e(+ Le*"t&n8 h% :een +e#"%te+e! 3"th the Ptent O''"$e n! -2 tht "t %h&4l! %h&3 tht the Stte &' Ne3 Y&+ #+nt% t& Ph"l"77"ne C&+7&+t"&n% the 7+"*"le#e t& :+"n# n $t"&n '&+ 4n'"+ $&(7et"t"&n "n tht %tte. Re%7&n!ent Le*"t&n h% t& $&(7l9 3"th th&%e +e4"+e(ent% :e'&+e "t $n :e ll&3e! t& ("nt"n n $t"&n '&+
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