La Chemise Lacoste vs. Fernandez GR 63796-97, 21 May 1984

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La Chemise Lacoste vs.

Fernandez
GR 63796-97, 21 May 1984
Facts:
La Chemise Lacoste is a French corporation and the actual owner of the trademarks
Lacoste, Chemise Lacoste, Crocodile Device and a composite mark consisting of
the word Lacoste and a representation of a crocodile/alligator, used on clothings and
other goods sold in many parts of the world and which has been marketed in the
Philippines since 1964. In 1975 and 1977, Hemandas Q. Co. was issued certificate of
registration for the trademark Chemise Lacoste and Q Crocodile Device both in the
supplemental and Principal Registry. In 1980, La Chemise Lacoste SA filed for the
registration of the Crocodile device and Lacoste. Games and Garments (Gobindram
Hemandas, assignee of Hemandas Q.Co.) opposed the registration of Lacoste. In
1983, La Chemise Lacoste filed with the NBI a letter-complaint alleging acts of unfair
competition committed by Hemandas and requesting the agencys assistance. By virtue
of search warrant, various goods and articles were seized from Hemandas but such
warrants were recalled.
Issue: Whether or not defendant was guilty of unfair competition
Held:
Yes. Inasmuch as the goodwill and reputation of La Chemise Lacoste products date
back even before 1964, Hemandas cannot be allowed to continue the trademark
Lacoste for the reason that he was the first registrant in the Supplemental Register of
a trademark used in international commerce. Registration in the Supplemental Register
cannot be given a posture as if the registration is in the Principal Register. It must be
noted that one may be declared an unfair competitor even if his competing trademark is
registered. La Chemise Lacoste is world renowned mark, and by virtue of the 20
November 1980 Memorandum of the Minister of Trade to the director of patents in
compliance with the Paris Convention for the protection of industrial property, effectively
cancels the registration of contrary claimants to the enumerated marks, which include
Lacoste.

U.S. vs. Vicente Manuel


G.R. No. L-1999, December 27, 1906
Facts:
Defendant was charged with unfair competition under Act No. 666. Private petitioner
A.S. Watson & Co. is a British corporation duly registered in the Philippine Islands and
engaged in the manufacture and sale of aerated waters such as soda, lemonade, ginger
ale and others.
In 1903, A.S. Watson and Co., Limited registered with the Bureau Patents a trademark
containing the words A.S. Watson and Company, Limited along with the figure of a
unicorn and dragon on either side of a Chinese pagoda, a long-time mark associate with
the company.
Accused Manuel sold soda water and bottles of aerated waters bearing the same form
and appearance with those used by private petitioner. The difference was that accused
posted different labels bearing his name and the quality of the beverage sold by Manuel
were distinctly of inferior quality than that sold by the company. The trial court convicted
Manuel of unfair competition and sentenced him to pay a fine and gold.
Issue: Whether or not defendant committed unfair competition.
Held:
Yes. The true test of unfair competition is whether certain goods have been intentionally
clothed with an appearance which is likely to deceive the ordinary purchases exercising
ordinary care, and not whether a certain limited class of purchasers with special
knowledge not possessed by the ordinary purchases could avoid mistake by the
exercise of this special knowledge. In this case, Manuel gave his goods the general
appearance of aerated waters manufactured by A.S. Watson and thus intended to
deceive the public and defraud A.S. Watson.

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