Petitioner: CONRAD AND COMPANY, INC.

Respondents: CA, FITRITE INC., and VICTORIA BISCUITS CO., INC.

FACTS
1. FITRITE, INC. and VICTORIA BISCUIT CO., INC., both domestic corporations, are engaged in manufacturing, selling and distributing biscuits and cookies bearing the
trademark "SUNSHINE" in the Philippines.
2. CONRAD AND COMPANY is also engaged in importing, selling and distributing biscuits and cookies in the Philippines.
3. In April 1982, FITRITE filed in the Bureau of Patents, Trademarks and Technology Transfer (BPTTT) applications for registration of the trademark "SUNSHINE," both in the
Supplemental and Principal Registers, to be used on biscuits and cookies. Since March 31, 1981 FITRITE had exclusively used this trademark in the concept of owner on
its biscuits and cookies.
o On May 20, 1983, Supplemental Register was Approved
o On March 22, 1990, Principal Register was Approved
4. On May 20, 1990, FITRITE discovered that CONRAD had been importing, selling and distributing biscuits bearing its trademark in Philippines. Being acts of infringement
and unfair competition, FITRITE filed an action for injunction with damages.
5. CONRAD filed a motion to dismiss on the grounds of the doctrine of primary jurisdiction and failure to state the cause of action.
6. Trial Court granted the motion to dismiss. Held that CONRAD having been granted distributorship by Sunshine Biscuits USA over Philippine territory it follows that the
resolution of the issue with respect to the ownership of Sunshine Biscuits which is the basis of FITRITE’s claim is lodged under the exclusive jurisdiction of the BPTTT.
7. Court of Appeals reversed the decision of the Trial Court. It held that No evidence had been introduced to show that “SUNHINE” trademark has been registered in the
USA. Hence, unless and until FITRITE’s certificate as registrant of the said trademark cancelled by BPTTT, the trademark belongs to FITRITE.
8. CA also ordered the trial court to proceed with the case for "injunction with damages" filed by FITRITE notwithstanding the pendency of an administrative case for the
cancellation.

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