Wednesday, June 21, 2017

Case Digest: Asia Brewery vs. Court of Appeals

Asia Brewery vs. CA
GR 103543, 5 July 1993

FACTS:

San Miguel Corporation (SMC) filed a complaint against Asia Brewery Inc. (ABI) for infringement of trademark and unfair competition on account of the latter's BEER PALE PILSEN or BEER NA BEER product which has been competing with SMC's SAN MIGUEL PALE PILSEN for a share of the local beer market. 

RULING:
The Court ruled that petitioner ABI was guilty of neither infringement nor unfair comepetition. The Court reasoned that neither the sound, spelling or appearance of Beer Pale Pilsen be said to be confusingly similar to San Miguel Pale Pilsen. The dominant feature of SMC’s trademark is “San Miguel Pale Pilsen” while ABI’s is “Beer Pale Pilsen”. The word “Beer” does not appear in SMC’s product, nor the words “San Miguel” appear in ABI’s product. The difference outweigh the similarity, which the court believed could not possibly create confusion in consumers. The words “Beer”, “pale” and “pilsen” are generic and/or descriptive words, which could not be exclusively attributable to one company(Sec4(e), IPR).


The Court also ruled that ABI did not sell its products, passing them off as though they were from respondent company. There was no showing that ABI’s Beer Pale Pilsen was sold so as to deceive its consumers as to its origin. Therefore, ABI could not be guilty of unfair competition.

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