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WILSON ONG CHING KIAN CHUAN, petitioner, vs. HON.

BRANCH (hereafter Ceroilfood Shandong), based in Qingdao,


COURT OF APPEALS and LORENZO China. Further, Tan averred that he was the exclusive distributor in
TAN, respondents. the Philippines of the Pagoda and Lungkow vermicelli and was solely
DECISION authorized to use said trademark. He added that Ong merely copied
QUISUMBING, J.: the two-dragon design from Ceroilfood Shandong which had the
Certificates of Registration issued by different countries. He
This petition for review[1]seeks to annul the decision [2] dated concluded that Ongs Certificate of Copyright Registration was not
August 27, 1997 of the Court of Appeals which set aside the valid for lack of originality.
resolutions[3] dated October 13 and December 15, 1993 as well as the
order dated March 1, 1994 of the Regional Trial Court of Quezon City, On September 30, 1993, Ong countered Tans opposition to the
Branch 94.[4] issuance of the writ of preliminary injunction.

Petitioner Wilson Ong Ching Kian Chuan (Ong), On October 13, 1993, the court issued the writ in Ongs favor upon
imports vermicelli from China National Cereals Oils and Foodstuffs his filing of a P100,000.00 bond.[5]
Import and Export Corporation, based in Beijing, China, under the
firm name C.K.C. Trading. He repacks it in cellophane wrappers with Tan filed a motion to dissolve the writ of preliminary injunction,
a design of two-dragons and the TOWER trademark on the uppermost but the trial court denied it on December 15, 1993. [6] The motion for
portion. Ong acquired a Certificate of Copyright Registration from the reconsideration was also denied on March 1, 1994.
National Library on June 9, 1993 on the said design.
Tan elevated the case to the Court of Appeals via a special civil
Ong discovered that private respondent Lorenzo Tan repacked action for certiorari with a prayer for the issuance of a TRO and/or
his vermicelli he imports from the same company but based in writ of preliminary injunction. Ong filed an opposition to Tans prayer
Qingdao, China in a nearly identical wrapper. On September 16, 1993, for an issuance of TRO and/or writ of preliminary injunction on the
Ong filed against Tan a verified complaint for infringement of ground that the trial court did not commit a grave abuse of discretion
copyright with damages and prayer for temporary restraining order or in issuing the writ in his favor.
writ of preliminary injunction with the Regional Trial Court in Quezon
City. Ong alleged that he was the holder of a Certificate of Copyright After oral argument, the Court of Appeals rendered a decision on
Registration over the cellophane wrapper with the two-dragon design, August 8, 1994, setting aside the trial courts order. It decreed:
and that Tan used an identical wrapper in his business. In his prayer WHEREFORE, the petition is GIVEN DUE COURSE, and
for a preliminary injunction in addition to damages, he asked that Tan GRANTED. The order dated October 13, 1993 and related orders, as
be restrained from using the wrapper. He said he would post a bond to well as the writ of preliminary injunction issued by the respondent
guarantee the payment of damages resulting from the issuance of the court, are SET ASIDE as issued with grave abuse of discretion. No
writ of preliminary injunction. costs.

The trial court issued a temporary restraining order on the same SO ORDERED.[7]
date the complaint was filed. Tan filed an opposition to Ongs
application for a writ of preliminary injunction with counter- Ong filed a motion for reconsideration and on January 3, 1995,
application for the issuance of a similar writ against Ong. Tan alleged the Court of Appeals modified its August 8, 1994 order as follows:
that Ong was not entitled to an injunction. According to Tan, Ong did WHEREFORE the phrase the order dated October 13, 1993 and
not have a clear right over the use of the trademark Pagoda and related orders, as well as the writ of preliminary injunction issued by
Lungkow vermicelli as these were registered in the name of CHINA the respondent court, are SET ASIDE as issued with grave abuse of
NATIONAL CEREALS OIL AND FOODSTUFFS IMPORT AND discretion is hereby deleted in our resolution dated 08 August 1994.
EXPORT CORPORATION, SHANDONG CEREALS AND OILS In all other respects, said resolution must be maintained.
However, let a writ of preliminary injunction be issued enjoining the PETITIONER HAD AND WHICH RIGHT WAS INVADED
herein respondents and any and all persons acting for and in their BY THE PRIVATE RESPONDENT.
behalf from enforcing and/or implementing the Writ of Preliminary C. COURT OF APPEALS DECISION OF AUGUST 8, 1994
Injunction issued on October 15, 1993 pursuant to the Resolution AND ITS RESOLUTION OF JANUARY 3, 1995 RESULTS IN
dated October 13, 1993 of the PUBLIC RESPONDENT in Civil Case CONFUSION.
No. Q-93-17628 entitled WILSON ONG CHING KIAN CHUAN, ETC.
vs. LORENZO TAN, ETC. upon petitioners filing of a bond of II. BY INTERFERING WITH THE JUDICIAL DISCRETION
P200,000.00. OF THE TRIAL COURT.
A. RESPONDENT COURT OF APPEALS INTERFERENCE
The Branch Clerk of Court of the RTC, Branch 94, Quezon City is WITH THE DISCRETION OF TRIAL COURT
directed to elevate the records of Civil Case No. 293-17128 within TEN CONSTITUTES GRAVE ABUSE OF DISCRETION.
(10) DAYS from notice.
III. BY ISSUING A WRIT OF PRELIMINARY INJUNCTION
The parties are given THIRTY (30) DAYS from notice to file their IN FAVOR OF THE PRIVATE RESPONDENT AND
memorandum or any pertinent manifestation on the matter, after DISREGARDING THE WRIT OF PRELIMINARY
which the case shall be considered submitted for decision. INJUNCTION ISSUED BY THE TRIAL COURT WHOM
SO ORDERED.[8] (SIC), UNDER THE JANUARY 13, 1995 RESOLUTION
OF RESPONDENT COURT OF APPEALS, WAS
Pursuant to the Court of Appeals resolution on January 16, 1996, JUDICIALLY HELD NOT TO HAVE COMMITTED ANY
the parties submitted their memoranda. On August 27, 1997, the GRAVE ABUSE OF DISCRETION IN THE ISSUANCE OF
appellate court promulgated its decision, decreeing as follows: THE OCTOBER 13, 1993 AND RELATED ORDERS.
A. ISSUANCE OF WRIT OF PRELIMINARY INJUNCTION
WHEREFORE, the resolutions dated October 13, 1993 and December ADDRESSED TO THE SOUND DISCRETION OF THE
15, 1993 as well as the order dated March 1, 1994 - all in Civil Case No. TRIAL COURT.
Q-93-17628 are hereby SET ASIDE and our injunction heretofore
issued made permanent. IV. WHEN IT MADE ITS OWN FINDINGS AND
IT IS SO ORDERED.[9] CONCLUSIONS, PRE-EMPTING THE TRIAL COURT
AND PRE-JUDGING THE CASE, THUS LEAVING THE
On October 17, 1997, Ong filed the instant petition for review, TRIAL COURT WITH NOTHING TO RULE UPON.
claiming that the Court of Appeals committed grave and serious errors
tantamount to acting with grave abuse of discretion and/or acting A. COURT OF APPEALS PREJUDGED THE CASE
without or in excess of its jurisdiction: REMANDED TO THE TRIAL COURT

I. WHEN IT ISSUED A PERMANENT PRELIMINARY The issues for our determination are: Was the issuance of the writ
INJUNCTION IN FAVOR OF THE PRIVATE of preliminary injunction proper? Was there grave abuse of discretion
RESPONDENT WHEN THE LATTERS RIGHT TO SUCH committed by the Court of Appeals when it set aside the order of the
A RELIEF IS NOT CLEAR, DOUBTFUL AND HAS NO trial court, then issued a judgment touching on the merits?
LEGAL OR FACTUAL BASIS.
A. CERTIFICATE OF COPYRIGHT REGISTRATION Petitioner avers that the CA erred in issuing a preliminary
JUSTIFY ISSUANCE OF WRIT OF PRELIMINARY injunction in private respondents favor. He says, firstly, that he is
INJUNCTION UNDER P.D. NO. 49. more entitled to it. He states that as holder of the Certificate of
B. ISSUANCE OF PRELIMINARY INJUNCTION MUST BE Copyright Registration of the twin-dragon design, he has the
BASED ON CLEAR AND UNMISTAKABLE RIGHT WHICH protection of P.D. No. 49.[10] Said law allows an injunction in case of
infringement. Petitioner asserts that private respondent has no
registered copyright and merely relies on the trademark of his Ongs claim (that the Court of Appeals in deleting the aforequoted
principal abroad, which insofar as Philippine laws is concerned, phrase in the August 8, 1994 decision abandoned its earlier finding of
cannot prevail over the petitioners copyright. grave abuse of discretion on the part of the trial court), however, is
without logical basis. The appellate court merely restated in its own
Private respondent, for his part, avers that petitioner has no clear words the issue raised in the petition: from a) whether the RTC
right over the use of the copyrighted wrapper since the PAGODA committed grave abuse of discretion, to b) whether Tan was entitled to
trademark and label were first adopted and used and have been duly an injunctive relief. Then it clarified that the relief sought is a
registered by Ceroilfood Shandong not only in China but in nearly 20 prohibition against Ong and his agents from enforcing the writ of
countries and regions worldwide. Petitioner was not the original preliminary injunction. Properly understood, an order enjoining the
creator of the label, but merely copied the design of Ceroilfood enforcement of a writ of preliminary injunction issued by the RTC in
Shandong. Private respondent presented copies of the certificates of a certiorari proceeding under Rule 65 of the Rules of Court effectively
copyright registration in the name of Ceroilfood Shandong issued by sets aside the RTC order for being issued with grave abuse of
at least twenty countries and regions worldwide which although discretion.
unauthenticated are, according to him, sufficient to provide a
sampling of the evidence needed in the determination of the grant of To be entitled to an injunctive writ, petitioner must show, inter
preliminary injunction.[11] Private respondent alleges, that the alia, the existence of a clear and unmistakable right and an urgent and
trademark PAGODA BRAND was registered in China on October 31, paramount necessity for the writ to prevent serious damage. [18]From
1979[12] while the trademark LUNGKOW VERMICELLI WITH TWO- the above discussion, we find that petitioners right has not been
DRAGON DEVICE was registered on August 15, 1985.[13] clearly and unmistakably demonstrated. That right is what is in
dispute and has yet to be determined. In Developers Group of
To resolve this controversy, we have to return to basics. A person Companies, Inc. vs. Court of Appeals, 219 SCRA 715, 722-723 (1993),
to be entitled to a copyright must be the original creator of the we held that in the absence of proof of a legal right and
work. He must have created it by his own skill, labor and judgment the injury sustained by the plaintiff, an order of the trial court
without directly copying or evasively imitating the work of another. granting the issuance of an injunctive writ will be set aside, for having
[14]
 The grant of preliminary injunction in a case rests on the sound been issued with grave abuse of discretion. Conformably, there was no
discretion of the court with the caveat that it should be made with abuse of discretion by the Court of Appeals when it issued its own
extreme caution.[15] Its grant depends chiefly on the extent of doubt on order to restrain the enforcement of the preliminary injunction issued
the validity of the copyright, existence of infringement, and the by the trial court.
damages sustained by such infringement. [16] In our view, the copies of
the certificates of copyright registered in the name of Ceroilfood Finally, we note that the complaint initially filed with the RTC
Shandong sufficiently raise reasonable doubt. With such a doubt, the was for infringement of copyright. The trial courts resolution subject
preliminary injunction is unavailing. [17] In Medina vs. City Sheriff, of Tans petition under Rule 65 before the CA concerns the correctness
Manila, 276 SCRA 133, 139 (1997), where the complainants title was of the grant of the writ of preliminary injunction. The only issue
disputed, we held that injunction was not proper. brought before the CA involved the grave abuse of discretion allegedly
committed by the trial court in granting the writ of preliminary
Petitioner Ong argues that the Court of Appeals erred and injunction. The Court of Appeals in declaring that the wrapper of
contradicted itself in its January 3, 1995 Resolution, where it deleted petitioner is a copy of Ceroilfood Shandongs wrapper went beyond
the phrase the order dated October 13, 1993 and related orders, as that issue and touched on the merits of the infringement case, which
well as the writ of preliminary injunction issued by the respondent remains to be decided by the trial court. [19] In our view, it was
court, are SET ASIDE as issued with grave abuse of discretion in its premature for the Court of Appeals to declare that the design of
August 8, 1994 decision, and at the same time issued a writ of petitioners wrapper is a copy of the wrapper allegedly registered by
preliminary injunction in Tans favor.
Ceroilfood Shandong. That matter remains for decision after
appropriate proceedings at the trial court.

WHEREFORE, the instant petition is PARTIALLY


GRANTED. The prayer for a writ of preliminary injunction to prohibit
Tan from using the cellophane wrapper with two-dragon device is
denied, but the finding of the respondent appellate court that Ongs
copyrighted wrapper is a copy of that of Ceroilfood Shandong is SET
ASIDE for being premature. The Regional Trial Court of Quezon City,
Branch 94, is directed to proceed with the trial to determine the
merits of Civil Case No. 33779 expeditiously. Let the records of this
case be REMANDED to said trial court promptly.

No pronouncement as to costs.

SO ORDERED.
VENANCIO SAMBAR, doing business under the name and premises. He also claimed he did not know the whereabouts of
style of CVS Garment Enterprises, petitioner, vs. Sambar, the alleged owner of CVSGE.
LEVI STRAUSS & CO., and LEVI STRAUSS (PHIL.),
INC., respondents. Thereafter, private respondents amended their complaint to
DECISION include CVSGIC. When private respondents learned the whereabouts
of Sambar and CVSGE, the case was revived.
QUISUMBING, J.:
Private respondents alleged in their complaint that Levi Strauss
This petition for review on certiorari prays for the reversal of the and Co. (LS&Co.), an internationally known clothing manufacturer,
decision dated January 30, 1998, of the Court of Appeals in CA-G.R. owns the arcuate design trademark which was registered under U.S.
CV No. 51553. That decision affirmed the decision in Civil Case No. Trademark Registration No. 404, 248 on November 16, 1943, and in
88-2220 of the Regional Trial Court, Branch 66, Makati City, making the Principal Register of trademarks with the Philippine Patent Office
permanent the writ of preliminary injunction, ordering CVS Garment under Certificate of Registration No. 20240 issued on October 8,
and Industrial Company (CVSGIC) and petitioner Venancio Sambar to 1973; that through a Trademark Technical Data and Technical
pay private respondents jointly and solidarily the sum of P50,000 as Assistance Agreement with Levi Strauss (Phil.) Inc. (LSPI) in 1972,
temperate and nominal damages, P10,000 as exemplary damages, LS&Co. granted LSPI a non-exclusive license to use the arcuate
and P25,000 as attorneys fees and litigation costs, and ordering the trademark in its manufacture and sale of Levis pants, jackets and
Director of the National Library to cancel Copyright Registration No. shirts in the Philippines; that in 1983, LS&Co. also appointed LSPI as
1-1998 in the name of Venancio Sambar. its agent and attorney-in-fact to protect its trademark in the
Philippines; and that sometime in 1987, CVSGIC and Venancio
The facts are as follows: Sambar, without the consent and authority of private respondents and
in infringement and unfair competition, sold and advertised, and
On September 28, 1987, private respondents, through a letter despite demands to cease and desist, continued to manufacture, sell
from their legal officer, demanded that CVS Garment Enterprises and advertise denim pants under the brand name Europress with back
(CVSGE) desist from using their stitched arcuate design on the pockets bearing a design similar to the arcuate trademark of private
Europress jeans which CVSGE advertised in the Manila Bulletin. respondents, thereby causing confusion on the buying public,
prejudicial to private respondents goodwill and property right.
Atty. Benjamin Gruba, counsel of CVSGE, replied that the arcuate
design on the back pockets of Europress jeans was different from the In its answer, CVSGIC admitted it manufactured, sold and
design on the back pockets of Levis jeans. He further asserted that his advertised and was still manufacturing and selling denim pants under
client had a copyright on the design it was using. the brand name of Europress, bearing a back pocket design of two
double arcs meeting in the middle. However, it denied that there was
Thereafter, private respondents filed a complaint against Sambar, infringement or unfair competition because the display rooms of
doing business under the name and style of CVSGE. Private department stores where Levis and Europress jeans were sold, were
respondents also impleaded the Director of the National distinctively segregated by billboards and other modes of
Library.Summons was sent to Sambar in his business address at 161-B advertisement. CVSGIC avers that the public would not be confused
Iriga corner Retiro, La Loma, Quezon City. on the ownership of such known trademark as Levis, Jag, Europress,
etc..Also, CVSGIC claimed that it had its own original arcuate design,
Atty. Gruba claimed that he erroneously received the original as evidenced by Copyright Registration No. 1-1998, which was very
summons as he mistook it as addressed to his client, CVSGIC. He different and distinct from Levis design. CVSGIC prayed for actual,
returned the summons and the pleadings and manifested in court that moral and exemplary damages by way of counterclaim.
CVSGE, which was formerly doing business in the premises, already Petitioner Venancio Sambar filed a separate answer. He denied he
stopped operation and CVSGIC took over CVSGEs occupation of the was connected with CVSGIC. He admitted that Copyright Registration
No. 1-1998 was issued to him, but he denied using it. He also said he Petitioner appealed to the Court of Appeals which on January 30,
did not authorize anyone to use the copyrighted design. He 1998 decided in favor of private respondents as follows:
counterclaimed for moral and exemplary damages and payment of
attorneys fees. WHEREFORE, the judgment appealed from is AFFIRMED in toto.

After hearing, the trial court issued a writ of preliminary SO ORDERED.[3]


injunction enjoining CVSGIC and petitioner from manufacturing,
advertising and selling pants with the arcuate design on their back In this instant petition, petitioner avers that the Court of Appeals
pockets.CVSGIC and petitioner did not appear during the October 13 erred in:
and 27, 1993 hearings, when they were to present I. ...RULING THAT THERE WAS AN INFRINGEMENT OF
evidence. Consequently, the trial court ruled that they waived their RESPONDENTS ARCUATE MARK.
right to present evidence. II. ...RULING THAT PETITIONER IS JOINTLY AND
SOLIDARILY LIABLE WITH CVS GARMENTS
On May 3, 1995, the trial court rendered its decision. The INDUSTRIAL CORPORATION FOR INFRINGEMENT OF
dispositive portion reads: RESPONDENTS ARCUATE MARK.
III. ...IN ORDERING, THERE BEING NO INFRINGEMENT
IN VIEW OF THE FOREGOING, judgment is hereby rendered: OR UNFAIR COMPETITION, THE AWARD OF
DAMAGES AND CANCELLATION OF COPYRIGHT
a) making the writ of preliminary injunction permanent; REGISTRATION NO. 1-1998 ISSUED IN THE NAME OF
b) ordering the defendants CVS Garment and Industrial Company and PETITIONER.[4]
Venancio Sambar to pay the plaintiffs jointly and solidarily the sum of Briefly, we are asked to resolve the following issues:
P50,000.00 as temperate and nominal damages, the sum of
P10,000.00 as exemplary damages, and the sum of P25,000.00 as 1. Did petitioner infringe on private respondents arcuate design?
attorneys fees and litigation expenses and to pay the costs. 2. Must we hold petitioner solidarily liable with CVS Garments
Industrial Corporation?
SO ORDERED.[1] 3. Are private respondents entitled to nominal, temperate and
exemplary damages and cancellation of petitioners copyright?
Private respondents moved for a reconsideration praying for the
cancellation of petitioners copyright registration. The trial court On the first issue, petitioner claims that he did not infringe on
granted reconsideration in its July 14, 1995 order, thus: private respondents arcuate design because there was no colorable
imitation which deceived or confused the public. He cites Emerald
IN VIEW OF THE FOREGOING, judgment is hereby rendered: Garment Manufacturing Corporation vs. Court of Appeals, G.R. No.
a) making the writ of preliminary injunction permanent; 100098, 251 SCRA 600 (1995), as authority. He disagreed with the
b) ordering the defendants CVS Garment and Industrial Company and Court of Appeals that there were confusing similarities between Levis
Venancio Sambar to pay the plaintiffs jointly and solidarily the sum of and Europress arcuate designs, despite the trial courts observation of
P50,000.00 as temperate and nominal damages, the sum of differences in them. Petitioner maintains that although the
P10,000.00 as exemplary damages, and the sum of P25,000.00 as backpocket designs had similarities, the public was not confused
attorneys fees and litigation expenses and to pay the costs; because Levis jeans had other marks not found in Europress
c) ordering the Director of the National Library to cancel the jeans. Further, he says Levis long history and popularity made its
Copyright Registration No. 1-1998 issued in the name of Venancio trademark easily identifiable by the public.
Sambar.[2] In its comment, private respondents aver that the Court of
Appeals did not err in ruling that there was infringement in this
case. The backpocket design of Europress jeans, a double arc
intersecting in the middle was the same as Levis mark, also a double he alleges an affirmative defense, which is not a denial of an essential
arc intersecting at the center. Although the trial court found ingredient in the plaintiffs cause of action, but is one which, if
differences in the two designs, these differences were not established, will be a good defense i.e., an avoidance of the claim,
noticeable. Further, private respondents said, infringement of which prima facie, the plaintiff already has because of the defendants
trademark did not require exact similarity. Colorable imitation own admissions in the pleadings.[9]
enough to cause confusion among the public, was sufficient for a
trademark to be infringed. Private respondents explained that in a Petitioners defense in this case was an affirmative defense. He did
market research they conducted with 600 respondents, the result not deny that private respondents owned the arcuate trademark nor
showed that the public was confused by Europress trademark vis the that CVSGIC used on its products a similar arcuate design. What he
Levis trademark. averred was that although he owned the copyright on the Europress
arcuate design, he did not allow CVSGIC to use it. He also said he was
We find that the first issue raised by petitioner is factual. The not connected with CVSGIC. These were not alleged by private
basic rule is that factual questions are beyond the province of this respondents in their pleadings, and petitioner therefore had the
Court in a petition for review. Although there are exceptions to this burden to prove these.
rule, this case is not one of them. [5] Hence, we find no reason to
disturb the findings of the Court of Appeals that Europress use of the Lastly, are private respondents entitled to nominal, temperate
arcuate design was an infringement of the Levis design. and exemplary damages and cancellation of petitioners copyright?

On the second issue, petitioner claims that private respondents Petitioner insists that he had not infringed on the arcuate
did not show that he was connected with CVSGIC, nor did they prove trademark, hence, there was no basis for nominal and temperate
his specific acts of infringement to make him liable for damages. Also, an award of nominal damages precludes an award of
damages.Again, this is a factual matter and factual findings of the trial temperate damages. He cites Ventanilla vs. Centeno, G.R. No. L-
court, concurred in by the Court of Appeals, are final and binding on 14333, 1 SCRA 215 (1961) on this. Thus, he contends,
this Court.[6] Both the courts below found that petitioner had a assuming arguendo that there was infringement, the Court of Appeals
copyright over Europress arcuate design and that he consented to the still erred in awarding both nominal and temperate damages.
use of said design by CVSGIC. We are bound by this finding, especially
in the absence of a showing that it was tainted with arbitrariness or Petitioner likewise said that the grant of exemplary damages was
palpable error.[7] It must be stressed that it was immaterial whether or inconsistent with the trial courts finding that the design of Europress
not petitioner was connected with CVSGIC. What is relevant is that jeans was not similar to Levis design and that no pecuniary loss was
petitioner had a copyright over the design and that he allowed the use suffered by respondents to entitle them to such damages.
of the same by CVSGIC.
Lastly, petitioner maintains that as Europress arcuate design is
Petitioner also contends that the Court of Appeals erred when it not a copy of that of Levis, citing the trial courts findings that although
said that he had the burden to prove that he was not connected with there are similarities, there are also differences in the two designs,
CVSGIC and that he did not authorize anyone to use his copyrighted cancellation of his copyright was not justified.
design. According to petitioner, these are important elements of On this matter, private respondents assert that the lower courts
private respondents cause of action against him, hence, private found that there was infringement and Levis was entitled to damages
respondents had the ultimate burden of proof. based on Sections 22 and 23 of RA No. 166 otherwise known as the
Pertinent is Section 1, Rule 131 of the Rules of Court [8] which Trade Mark Law,[10] as amended, which was the law then
provides that the burden of proof is the duty of a party to prove the governing. Said sections define infringement and prescribe the
truth of his claim or defense, or any fact in issue by the amount of remedies therefor. Further, private respondents aver it was
evidence required by law. In civil cases, the burden of proof may be on misleading for petitioner to claim that the trial court ruled that private
either the plaintiff or the defendant. It is on the latter, if in his answer respondents did not suffer pecuniary loss, suggesting that the award
of damages was improper. According to the private respondents, the was infringement means they suffered losses for which they are
trial court did not make any such ruling. It simply stated that there entitled to moderate damages.[16] We find that the award
was no evidence that Levis had suffered decline in its sales because of of P50,000.00 as temperate damages fair and reasonable, considering
the use of the arcuate design by Europress jeans. They offer that while the circumstances herein as well as the global coverage and reputation
there may be no direct proof that they suffered a decline in sales, of private respondents Levi Strauss & Company and Levi Strauss
damages may still be measured based on a reasonable percentage of (Phil.), Inc.
the gross sales of the respondents, pursuant to Section 23 of the
Trademark law.[11] WHEREFORE, the decision dated January 30, 1998, of the
Court of Appeals, in CA-G.R. CV No. 51553 AFFIRMING the judgment
Finally, regarding the cancellation of petitioners copyright, of the Regional Trial Court of Makati, Branch 66, dated July 14, 1995,
private respondents deny that the trial court ruled that the arcuate is hereby MODIFIED so that nominal damages are deleted but the
design of Europress jeans was not the same as Levis arcuate design amount of P50,000 is hereby awarded only as TEMPERATE
jeans.On the contrary, the trial court expressly ruled that there was DAMAGES. In all other respects, said judgment is hereby AFFIRMED,
similarity. The cancellation of petitioners copyright was justified to wit:
because petitioners copyright can not prevail over respondents
registration in the Principal Register of Bureau of Patents, a) the writ of preliminary injunction is made permanent;
Trademarks, and Technology Transfer. According to private b) the defendants CVS Garment and Industrial Company and
respondents, the essence of copyright registration is originality and a Venancio Sambar are ordered also to pay the plaintiffs
copied design is inherently non-copyrightable. They insist that jointly and solidarily the sum of P10,000.00 as exemplary
registration does not confer originality upon a copycat version of a damages, and the sum of P25,000.00 as attorneys fees
prior design. and litigation expenses, and to pay the costs; and
c) the Director of the National Library is ordered to cancel
From the foregoing discussion, it is clear that the matters raised the Copyright Registration No. 1-1998 issued in the name
by petitioner in relation to the last issue are purely factual, except the of Venancio Sambar.
matter of nominal and temperate damages. Petitioner claims that
damages are not due private respondents and his copyright should not SO ORDERED.
be cancelled because he had not infringed on Levis trademark. Both
the trial court and the Court of Appeals found there was
infringement. Thus, the award of damages and cancellation of
petitioners copyright are appropriate.[12] Award of damages is clearly
provided in Section 23,[13] while cancellation of petitioners copyright
finds basis on the fact that the design was a mere copy of that of
private respondents trademark. To be entitled to copyright, the thing
being copyrighted must be original, created by the author through his
own skill, labor and judgment, without directly copying or evasively
imitating the work of another.[14]

However, we agree with petitioner that it was error for the Court
of Appeals to affirm the award of nominal damages combined with
temperate damages[15] by the Regional Trial Court of Makati. What
respondents are entitled to is an award for temperate damages, not
nominal damages. For although the exact amount of damage or loss
can not be determined with reasonable certainty, the fact that there
UNILEVER PHILIPPINES G.R. No. 119280 demonstrate the effect on fabrics of one
(PRC), INC., of P&GPs products, a liquid bleach called Ace.
 
  x x x x x x x x x
THE HONORABLE COURT  
OF APPEALS and PROCTER 1.7.           Since then, P&G has used the tac-tac key
AND GAMBLE PHILIPPINES, visual in the advertisement of its products. In
INC.,  fact, in 1986, in Italy, the tac-tac key visual was
  used in the television commercial for Ace
In this petition for review under Rule 45 of the Rules of Court, entitled Kite.
petitioner assails the February 24, 1995 decision [1] of the Court of  
Appeals (CA) in CA-G.R. SP No. 35242 entitled Unilever Philippines 1.8.           P&G has used the same distinctive tac-tac key
(PRC), Inc. v. Honorable Fernando V. Gorospe, Jr. and Procter and visual to local consumers in the Philippines.
Gamble Philippines, Inc. (P&GP) which affirmed the issuance by the  
court a quo of a writ of preliminary injunction against it. The writ x x x x x x x x x
enjoined petitioner from using and airing, until further orders of the  
court, certain television commercials for its laundry products claimed 1.10.       Substantially and materially imitating the
to be identical or similar to its double tug or tac-tac key visual.[2] aforesaid tac-tac key visual of P&GP and in
  blatant disregard of P&GPs intellectual property
Petitioner alleges that the writ of preliminary injunction was rights, Unilever on 24 July 1993 started airing a
issued by the trial court (and affirmed by the CA) without any 60 second television commercial TVC of its
evidence of private respondents clear and unmistakable right to the Breeze Powerwhite laundry product called
writ. Petitioner further contends that the preliminary injunction Porky. The said TVC included a stretching
issued against it already disposed of the main case without trial, thus visual presentation and sound effects almost
denying petitioner of any opportunity to present evidence on its [identical] or substantially similar
behalf. to P&GPs tac-tac key visual.
   
The antecedents show that on August 24, 1994, private respondent x x x x x x x x x
Procter and Gamble Phils., Inc. filed a complaint for injunction with  
damages and a prayer for temporary restraining order and/or writ of 1.14.       On July 15, 1994, P&GP aired in the
preliminary injunction against petitioner Unilever, alleging that: Philippines, the same Kite television
  advertisement it used in Italy in 1986, merely
1.5.           As early as 1982, a P&G subsidiary in Italy dubbing the Italian language with Filipino for
used a key visual in the advertisement of its the same produce Ace bleaching liquid
laundry detergent and bleaching products. This which P&GP now markets in the Philippines.
key visual known as the double-tug or tac-  
tac demonstration shows the fabric being held 1.15.       On August 1, 1994, Unilever filed a Complaint
by both hands and stretched sideways. with the Advertising Board of the Philippines to
  prevent P&GP from airing the Kite television
1.6.           The tac-tac was conceptualized for P&G by advertisement.[3]
the advertising agency Milano and Gray of Italy  
in 1982. The tac-tac was used in the same year On August 26, 1994, Judge Gorospe issued an order granting a
in an advertisement entitled All aperto to temporary restraining order and setting it for hearing on September 2,
1994 for Unilever to show cause why the writ of preliminary PUBLIC RESPONDENT IN ISSUING THE
injunction should not issue. During the hearing on September 2, 1994, VOID ORDER HAD DEPRIVED PETITIONER OF
P&GP received Unilevers answer with opposition to preliminary SUBSTANTIVE AND PROCEDURAL DUE PROCESS;
injunction. P&GP filed its reply to Unilevers opposition to a PUBLIC RESPONDENT HAD FORECLOSED
preliminary injunction on September 6, 1994. PETITIONERS RIGHT AND THE OPPORTUNITY TO
  CROSS-EXAMINE PROCTERS WITNESSES ABAD
During the hearing on September 9, 1994, AND HERBOSA.[4]
Judge Gorospe ordered petitioner to submit a sur-rejoinder. P&GP  
received Unilevers rejoinder to reply on September 13, 1994. The  
following day, on September 14, 1994, P&GP filed its sur-reply to On February 24, 1995, the CA rendered its decision finding
Unilevers rejoinder. that Judge Gorospe did not act with grave abuse of discretion in
  issuing the disputed order. The petition for certiorari was thus
On September 19, 1994, P&GP received a copy of the order dismissed for lack of merit.
dated September 16, 1994 ordering the issuance of a writ of  
preliminary injunction and fixing a bond of P100,000. On the same After a careful perusal of the records, we agree with the CA and
date, P&GP filed the required bond issued by Prudential Guarantee affirm its decision in toto:
and Assurance, Inc.  
  Petitioner does not deny that the questioned TV
On September 21, 1994, petitioner appealed to the CA advertisements are substantially similar
assigning the following errors allegedly committed by the court a to P&GPs double tug or tac-tac key visual. However, it
quo, to wit: submits that P&GP is not entitled to the relief
  demanded, which is to enjoin petitioner from airing
PUBLIC RESPONDENT HAD ACTED said TV advertisements, for the reason that petitioner
WITHOUT OR IN EXCESS OF JURISDICTION AND has Certificates of Copyright Registration for which
WITH GRAVE ABUSE OF DISCRETION advertisements while P&GP has none with respect to its
AMOUNTING TO LACK OF JURISDICTION IN double-tug or tac-tac key visual. In other words, it is
ISSUING THE WRIT OF PRELIMINARY petitioners contention that P&GP is not entitled to any
INJUNCTION IN VIOLATION OF THE RULES ON protection because it has not registered with the
EVIDENCE AND PROCEDURE, PARTICULARLY OF National Library the very TV commercials which it
SEC. 3 (a), RULE 58 OF THE REVISED RULES OF claims have been infringed by petitioner.
COURT AND OF THE PREVAILING  
JURISPRUDENCE. We disagree. Section 2 of PD 49 stipulates that
  the copyright for a work or intellectual creation subsists
PUBLIC RESPONDENT IN ISSUING THE from the moment of its creation. Accordingly, the
VOID ORDER DATED SEPTEMBER 16, 1994, HAD, creator acquires copyright for his work right upon its
IN EFFECT, ALREADY PREJUDGED THE MERITS creation. Contrary to petitioners contention, the
OF THE MAIN CASE. intellectual creators exercise and enjoyment of
  copyright for his work and the protection given by law
PUBLIC RESPONDENT HAD ISSUED THE to him is not contingent or dependent on any formality
VOID ORDER ACCORDING RELIEF TO A NON- or registration. Therefore, taking the material
PARTY IN CIVIL CASE NO. 94-2434 WITHOUT allegations of paragraphs 1.3 to 1.5 of P&GPsverified
JURISDICTION. Complaint in the context of PD 49, it cannot be
  seriously doubted that at least, for purposes of
determining whether preliminary injunction should 58, as amended by BP 224, and Paragraph A(8) of the
issue during the pendency of the case, P&GP is entitled Interim Rules). In fact, the court a quo set the incident
to the injunctive relief prayed for in its Complaint. for hearing on September 2, 1994, at which date
  petitioner was ordered to show cause why the writ
The second ground is likewise not well-taken. should not be issued. Petitioner filed an Opposition to
As adverted to earlier, the provisional remedy of the application for preliminary injunction. The same
preliminary injunction will not issue unless it is shown incident was again set for hearing on September 9,
in the verified complaint that plaintiff is probably 1994, during which the parties made some
entitled to the relief demanded, which consists in whole manifestations in support of their respective
or in part in restraining the commission or continuance positions. Subsequent to such hearing petitioner filed a
of the acts complained of.In view of such requirement, Reply to P&GPs Rejoinder to its Opposition. Under the
the court has to make a tentative determination if the foregoing circumstances, it is absurd to even suggest
right sought to be protected exists and whether the act that petitioner was not given its day in court in the
against which the writ is to be directed is violative of matter of the issuance of the preliminary injunctive
such right. Certainly, the courts determination as to the relief.
propriety of issuing the writ cannot be taken as a  
prejudgment of the merits of the case because it is x x x x x x x x x
tentative in nature and the writ may be dissolved  
during or after the trial if the court finds that plaintiff There was of course extreme urgency for the
was not entitled to it. court a quo to act on plaintiffs application for
  preliminary injunction. The airing of TV commercials is
x x x x x x x x x necessarily of limited duration only. Without such
  temporary relief, any permanent injunction against the
Obviously, the determination made by the court infringing TV advertisements of which P&GP may
a quo was only for purposes of preliminary injunction, possibly succeed in getting after the main case is finally
without passing upon the merits of the case, which adjudicated could be illusory if by then such
cannot be done until after a full-blown hearing is advertisements are no longer used or aired by
conducted. petitioner. It is therefore not difficult to perceive the
  possible irreparable damage which P&GP may suffer if
The third ground is patently unmeritorious. As respondent Judge did not act promptly on its
alleged in the Complaint P&GP is a subsidiary of application for preliminary injunction.[5]
Procter and Gamble Company (P&G) for which the  
double tug or tac-tac key visual was conceptualized or  
created. In that capacity, P&GP used the said TV Preliminary injunction is a provisional remedy
advertisement in the Philippines to promote its intended to provide protection to parties for the
products. As such subsidiary, P&GP is definitely within preservation of their rights or interests during
the protective mantle of the statute (Sec. 6, PD 49). the pendency of the principal action.[6] Thus, Section1,
  Rule 58 of the Rules of Court provides:
Finally, We find the procedure adopted by the  
court a quo to be in order. Section 1. Preliminary injunction defined;
  classes. A preliminary injunction is an order granted at
The record clearly shows that respondent Judge any stage of an action or proceeding prior to the
followed the (procedure provided for in Section 5, Rule judgment or final order, requiring a party or a court,
agency or a person to refrain from a particular act or
acts. It may also require the performance of a particular
act or acts, in which case it shall be known as a
preliminary mandatory injunction.
 
Injunction is resorted to only when there is a pressing
necessity to avoid injurious consequences which cannot be remedied
under any standard compensation. [7] As correctly ruled by the CA,
there was an extreme urgency to grant the preliminary injunction
prayed for by P&GP considering that TV commercials are aired for a
limited period of time only. In fact, this Court takes note of the fact
that the TV commercial in issue ― the Kite TV advertisement ― is no
longer aired today, more than 10 years after the injunction was
granted on September 16, 1994.
 The sole objective of a writ of preliminary injunction is to
preserve the status quo until the merits of the case can be heard fully.
[8]
 A writ of preliminary injunction is generally based solely on initial
and incomplete evidence.[9] Thus, it was impossible for the court a
quo to fully dispose of the case, as claimed by petitioner, without all
the evidence needed for the full resolution of the same. To date, the
main case still has to be resolved by the trial court.The issuance of a
preliminary injunction rests entirely on the discretion of the court and
is generally not interfered with except in cases of manifest abuse.
[10]
 There was no such abuse in the case at bar, especially because
petitioner was given all the opportunity to oppose the application for
injunction. The fact was, it failed to convince the court why the
injunction should not be issued. Thus, in Santos v. Court of Appeals,
[11]
 we held that no grave abuse of discretion can be attributed to a
judge or body issuing a writ of preliminary injunction where a party
has not been deprived of its day in court as it was heard and it
exhaustively presented all its arguments and defenses.
 
WHEREFORE, the petition is hereby DENIED.
 
Costs against petitioner.
 
SO ORDERED.
FRANCISCO G. JOAQUIN, JR., and BJ PRODUCTIONS, certain officers of RPN Channel 9, namely, William Esposo, Felipe
INC., petitioners, vs. FRANKLIN DRILON GABRIEL Medina, and Casey Francisco, in the Regional Trial Court of Quezon
ZOSA, WILLIAM ESPOSO, FELIPE MEDINA, JR., and City where it was docketed as Criminal Case No. 92-27854 and
CASEY FRANCISCO, respondents. assigned to Branch 104 thereof. However, private respondent Zosa
DECISION sought a review of the resolution of the Assistant City Prosecutor
MENDOZA, J.: before the Department of Justice.

This is a petition for certiorari. Petitioners seek to annul the On August 12, 1992, respondent Secretary of Justice Franklin M.
resolution of the Department of Justice, dated August 12, 1992, in Drilon reversed the Assistant City Prosecutors findings and directed
Criminal Case No. Q-92-27854, entitled Gabriel Zosa, et al. v. City him to move for the dismissal of the case against private
Prosecutor of Quezon City and Francisco Joaquin, Jr., and its respondents. [1]
resolution, dated December 3, 1992, denying petitioner Joaquins
motion for reconsideration. Petitioner Joaquin filed a motion for reconsideration, but his
motion was denied by respondent Secretary of Justice on December 3,
Petitioner BJ Productions, Inc. (BJPI) is the holder/grantee of 1992. Hence, this petition. Petitioners contend that:
Certificate of Copyright No. M922, dated January 28, 1971, of Rhoda
and Me, a dating game show aired from 1970 to 1977. 1. The public respondent gravely abused his discretion
amounting to lack of jurisdiction when he invoked non-
On June 28, 1973, petitioner BJPI submitted to the National presentation of the master tape as being fatal to the
Library an addendum to its certificate of copyright specifying the existence of probable cause to prove infringement, despite
shows format and style of presentation. the fact that private respondents never raised the same as
a controverted issue.
On July 14, 1991, while watching television, petitioner Francisco 2. The public respondent gravely abused his discretion
Joaquin, Jr., president of BJPI, saw on RPN Channel 9 an episode amounting to lack of jurisdiction when he arrogated unto
of Its a Date, which was produced by IXL Productions, Inc. (IXL). On himself the determination of what is copyrightable - an
July 18, 1991, he wrote a letter to private respondent Gabriel M. Zosa, issue which is exclusively within the jurisdiction of the
president and general manager of IXL, informing Zosa that BJPI had regional trial court to assess in a proper proceeding.
a copyright to Rhoda and Me and demanding that IXL discontinue
airing Its a Date. Both public and private respondents maintain that petitioners
failed to establish the existence of probable cause due to their failure
In a letter, dated July 19, 1991, private respondent Zosa to present the copyrighted master videotape of Rhoda and Me. They
apologized to petitioner Joaquin and requested a meeting to discuss a contend that petitioner BJPIs copyright covers only a specific episode
possible settlement. IXL, however, continued airing Its a Date, of Rhoda and Me and that the formats or concepts of dating game
prompting petitioner Joaquin to send a second letter on July 25, 1991 shows are not covered by copyright protection under P. D. No. 49.
in which he reiterated his demand and warned that, if IXL did not
comply, he would endorse the matter to his attorneys for proper legal Non-Assignment of Error

action.
Petitioners claim that their failure to submit the copyrighted
Meanwhile, private respondent Zosa sought to register IXLs master videotape of the television show Rhoda and Me was not raised
copyright to the first episode of Its a Date for which it was issued by in issue by private respondents during the preliminary investigation
the National Library a certificate of copyright on August 14, 1991. and, therefore, it was error for the Secretary of Justice to reverse the
Upon complaint of petitioners, an information for violation of investigating prosecutors finding of probable cause on this ground.
P.D. No. 49 was filed against private respondent Zosa together with
A preliminary investigation falls under the authority of the state preliminary investigation or to dismiss or move for dismissal
prosecutor who is given by law the power to direct and control of the complaint or information.
criminal actions.[2] He is, however, subject to the control of the
Secretary of Justice. Thus, Rule 112, 4 of the Revised Rules of Criminal In reviewing resolutions of prosecutors, the Secretary of Justice is
Procedure, provides: not precluded from considering errors, although unassigned, for the
purpose of determining whether there is probable cause for filing
SEC. 4. Duty of investigating fiscal. - If the investigating cases in court. He must make his own finding of probable cause and is
fiscal finds cause to hold the respondent for trial, he shall not confined to the issues raised by the parties during preliminary
prepare the resolution and corresponding information. He investigation. Moreover, his findings are not subject to review unless
shall certify under oath that he, or as shown by the record, an shown to have been made with grave abuse.
authorized officer, has personally examined the complainant
and his witnesses, that there is reasonable ground to believe Opinion of the Secretary of Justice

that a crime has been committed and that the accused is


probably guilty thereof, that the accused was informed of the Petitioners contend, however, that the determination of the
complaint and of the evidence submitted against him and that question whether the format or mechanics of a show is entitled to
he was given an opportunity to submit controverting copyright protection is for the court, and not the Secretary of Justice,
evidence. Otherwise, he shall recommend dismissal of the to make. They assail the following portion of the resolution of the
complaint. respondent Secretary of Justice:
[T]he essence of copyright infringement is the copying, in whole
In either case, he shall forward the records of the case to or in part, of copyrightable materials as defined and enumerated
the provincial or city fiscal or chief state prosecutor within five in Section 2 of PD. No. 49. Apart from the manner in which it is
(5) days from his resolution. The latter shall take appropriate actually expressed, however, the idea of a dating game show is,
action thereon within ten (10) days from receipt thereof, in the opinion of this Office, a non-copyrightable material. Ideas,
immediately informing the parties of said action. concepts, formats, or schemes in their abstract form clearly do
not fall within the class of works or materials susceptible of
No complaint or information may be filed or dismissed by copyright registration as provided in PD. No. 49.[3] (Emphasis
an investigating fiscal without the prior written authority or added.)
approval of the provincial or city fiscal or chief state
prosecutor. It is indeed true that the question whether the format or
mechanics of petitioners television show is entitled to copyright
Where the investigating assistant fiscal recommends the protection is a legal question for the court to make. This does not,
dismissal of the case but his findings are reversed by the however, preclude respondent Secretary of Justice from making a
provincial or city fiscal or chief state prosecutor on the ground preliminary determination of this question in resolving whether there
that a probable cause exists, the latter may, by himself, file the is probable cause for filing the case in court. In doing so in this case,
corresponding information against the respondent or direct he did not commit any grave error.
any other assistant fiscal or state prosecutor to do so, without
conducting another preliminary investigation. Petitioners claim that respondent Secretary of Justice gravely
abused his discretion in ruling that the master videotape should have
If upon petition by a proper party, the Secretary of Justice been presented in order to determine whether there was probable
reverses the resolution of the provincial or city fiscal or chief cause for copyright infringement. They contend
state prosecutor, he shall direct the fiscal concerned to file the that 20th Century Fox Film Corporation v. Court of Appeals,[4] on
corresponding information without conducting another which respondent Secretary of Justice relied in reversing the
resolution of the investigating prosecutor, is inapplicable to the case at
bar because in the present case, the parties presented sufficient copies. An objective and careful reading of the decision in said case
evidence which clearly establish linkages between the copyrighted could lead to no other conclusion than that said directive was hardly
show Rhoda and Meand the infringing TV show Its a Date.[5] intended to be a sweeping and inflexible requirement in all or similar
The case of 20th Century Fox Film Corporation involved raids copyright infringement cases. . . .[8]
conducted on various videotape outlets allegedly selling or renting out
pirated videotapes. The trial court found that the affidavits of NBI In the case at bar, during the preliminary investigation,
agents, given in support of the application for the search warrant, petitioners and private respondents presented written descriptions of
were insufficient without the master tape. Accordingly, the trial court the formats of their respective televisions shows, on the basis of which
lifted the search warrants it had previously issued against the the investigating prosecutor ruled:
defendants. On petition for review, this Court sustained the action of
the trial court and ruled:[6] As may [be] gleaned from the evidence on record, the substance of the
The presentation of the master tapes of the copyrighted films from television productions complainants RHODA AND ME and Zosas ITS
which the pirated films were allegedly copied, was necessary for the A DATE is that two matches are made between a male and a female,
validity of search warrants against those who have in their possession both single, and the two couples are treated to a night or two of dining
the pirated films. The petitioners argument to the effect that the and/or dancing at the expense of the show. The major concepts of
presentation of the master tapes at the time of application may not be both shows is the same. Any difference appear mere variations of the
necessary as these would be merely evidentiary in nature and not major concepts.
determinative of whether or not a probable cause exists to justify the That there is an infringement on the copyright of the show RHODA
issuance of the search warrants is not meritorious. The court cannot AND ME both in content and in the execution of the video
presume that duplicate or copied tapes were necessarily reproduced presentation are established because respondents ITS A DATE is
from master tapes that it owns. practically an exact copy of complainants RHODA AND ME because
The application for search warrants was directed against video tape of substantial similarities as follows, to wit:
outlets which allegedly were engaged in the unauthorized sale and
renting out of copyrighted films belonging to the petitioner pursuant RHODA AND ME ITS A DATE
to P.D. 49.
The essence of a copyright infringement is the similarity or at least Set I Set I
substantial similarity of the purported pirated works to the a. Unmarried participant a. same
copyrighted work. Hence, the applicant must present to the court the of one gender (searcher) appears on one side of a divider, while
copyrighted films to compare them with the purchased evidence of the three (3) unmarried participants of the other gender are on
video tapes allegedly pirated to determine whether the latter is an the other side of the divider. This arrangement is done to
unauthorized reproduction of the former. This linkage of the ensure that the searcher does not see the searchees.
copyrighted films to the pirated films must be established to satisfy b. Searcher asks a question b. same
the requirements of probable cause. Mere allegations as to the to be answered
existence of the copyrighted films cannot serve as basis for the by each
issuance of a search warrant. of the
This ruling was qualified in the later case of Columbia Pictures, Inc. v. searche
Court of Appeals[7] in which it was held: es. The
In fine, the supposed pronunciamento in said case regarding the purpos
necessity for the presentation of the master tapes of the copyrighted e is to
films for the validity of search warrants should at most be understood determi
to merely serve as a guidepost in determining the existence of ne who
probable cause in copyright infringement cases where there is doubt among 
as to the true nexus between the master tape and the pirated the
searche (A) Books, including composite and cyclopedic works, manuscripts,
es is the directories, and gazetteers;
most (B) Periodicals, including pamphlets and newspapers;
compat (C) Lectures, sermons, addresses, dissertations prepared for oral
ible delivery;
with (D) Letters;
the (E) Dramatic or dramatico-musical compositions; choreographic
searche works and entertainments in dumb shows, the acting form of which is
r. fixed in writing or otherwise;
c. Searcher speculates on the c. same (F) Musical compositions, with or without words;
match to the searchee. (G) Works of drawing, painting, architecture, sculpture, engraving,
d. Selection is made by the d. Selection is lithography, and other works of art; models or designs for works of
use of compute (sic) methods, based on the art;
or by the way questions are answer of the (H) Reproductions of a work of art;
answered, or similar methods. Searchees. (I) Original ornamental designs or models for articles of manufacture,
Set 2 Set 2 whether or not patentable, and other works of applied art;
Same as above with the genders same (J) Maps, plans, sketches, and charts;
of the (K) Drawings or plastic works of a scientific or technical character;
searc (L) Photographic works and works produced by a process analogous
her to photography; lantern slides;
and (M) Cinematographic works and works produced by a process
searc analogous to cinematography or any process for making audio-visual
hees recordings;
inter (N) Computer programs;
chan (O) Prints, pictorial illustrations advertising copies, labels, tags, and
ged. box wraps;
[9]
(P) Dramatizations, translations, adaptations, abridgements,
arrangements and other alterations of literary, musical or artistic
Petitioners assert that the format of Rhoda and Me is a product of works or of works of the Philippine government as herein defined,
ingenuity and skill and is thus entitled to copyright protection. It is which shall be protected as provided in Section 8 of this Decree.
their position that the presentation of a point-by-point comparison of (Q) Collections of literary, scholarly, or artistic works or of works
the formats of the two shows clearly demonstrates the nexus between referred to in Section 9 of this Decree which by reason of the selection
the shows and hence establishes the existence of probable cause for and arrangement of their contents constitute intellectual creations,
copyright infringement. Such being the case, they did not have to the same to be protected as such in accordance with Section 8 of this
produce the master tape. Decree.
(R) Other literary, scholarly, scientific and artistic works.
To begin with, the format of a show is not copyrightable. Section 2
of P.D. No. 49,[10] otherwise known as the DECREE ON This provision is substantially the same as 172 of the
INTELLECTUAL PROPERTY, enumerates the classes of work entitled INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES (R.A. No.
to copyright protection, to wit: 8293).[11] The format or mechanics of a television show is not included
in the list of protected works in 2 of P.D. No. 49. For this reason, the
Section 2. The rights granted by this Decree shall, from the moment of protection afforded by the law cannot be extended to cover them.
creation, subsist with respect to any of the following classes of works:
Copyright, in the strict sense of the term, is purely a statutory right. It petitioner BJPIs copyright, the investigating prosecutor should have
is a new or independent right granted by the statute, and not simply a the opportunity to compare the videotapes of the two shows.
pre-existing right regulated by the statute. Being a statutory grant, the
rights are only such as the statute confers, and may be obtained and Mere description by words of the general format of the two dating
enjoyed only with respect to the subjects and by the persons, and on game shows is insufficient; the presentation of the master videotape in
terms and conditions specified in the statute. [12] evidence was indispensable to the determination of the existence of
probable cause. As aptly observed by respondent Secretary of Justice:
Since . . . copyright in published works is purely a statutory creation, a
copyright may be obtained only for a work falling within the statutory A television show includes more than mere words can describe
enumeration or description.[13] because it involves a whole spectrum of visuals and effects, video
and audio, such that no similarity or dissimilarity may be found
Regardless of the historical viewpoint, it is authoritatively settled in by merely describing the general copyright/format of both dating
the United States that there is no copyright game shows.[16]
except that which is both created and secured by act of Congress . . . . WHEREFORE, the petition is hereby DISMISSED.
[14]

SO ORDERED.
P.D. No. 49, 2, in enumerating what are subject to copyright,
refers to finished works and not to concepts. The copyright does not
extend to an idea, procedure, process, system, method of operation,
concept, principle, or discovery, regardless of the form in which it is
described, explained, illustrated, or embodied in such work.[15] Thus,
the new INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES
provides:

Sec. 175. Unprotected Subject Matter. - Notwithstanding the


provisions of Sections 172 and 173, no protection shall extend, under
this law, to any idea, procedure, system, method or operation,
concept, principle, discovery or mere data as such, even if they are
expressed, explained, illustrated or embodied in a work; news of the
day and other miscellaneous facts having the character of mere items
of press information; or any official text of a legislative, administrative
or legal nature, as well as any official translation thereof.

What then is the subject matter of petitioners copyright? This


Court is of the opinion that petitioner BJPIs copyright covers audio-
visual recordings of each episode of Rhoda and Me, as falling within
the class of works mentioned in P.D. 49, 2(M), to wit:

Cinematographic works and works produced by a process analogous


to cinematography or any process for making audio-visual recordings;
The copyright does not extend to the general concept or format of its
dating game show. Accordingly, by the very nature of the subject of
UNITED FEATURE SYNDICATE, INC., petitioner,  b) On October 18, 1984 — as shown in
vs. the stamp mark of the Philippine Patent
MUNSINGWEAR CREATION MANUFACTURING Office (p. 80, Original Record) or on the
COMPANY, respondent. 15th and last day either for appealing or
Quasha, Asperilla, Ancheta, Pena and Nolasco for petitioner. for moving for reconsideration,
Jaime G. Manzano for private respondent. petitioner-appellant filed a motion for
reconsideration.
PARAS, J.: Sadly and unexplainably for a veteran law office, said
This is a petition for review on certiorari filed by United Feature motion did not contain or incorporate a notice of
Syndicate Inc., seeking to set aside the Resolution of the Seventh hearing.
Division of the Court of Appeals * dated September 16, 1986 c) Possibly realizing the fatal defect in its
dismissing the appeal of petitioner-appellant for having been filed out motion for reconsideration, petitioner-
of time and denying its Motion for Reconsideration for lack of merit in appellant subsequently filed a motion to
its Resolution dated October 14, 1986. set for hearing its motion for
The Resolution dismissing the appeal, reads as follows: reconsideration. This was done,
however, only on October 31, 1984 (p.
We agree with the Philippine Patent Office and 162, Original Record).
respondent appellee that the decision of the The motion for reconsideration filed on the last day,
aforementioned office dated October 2, 1984 had fatally failing as it did to contain a notice of hearing,
already become final and executory at the time the said pleading did not interrupt the period for
Notice of Appeal was filed. appealing, for the motion was nothing but a piece of
Our reasons for this conclusions are borne out by the scrap paper (Agricultural and Industrial Marketing,
following facts: Inc. v. Court of Appeals, 118 SCRA [1982]
a) On October 2, 1984, the decision 492; Republic Planters Bank v. Intermediate
sought to be appealed was rendered by Appellate Court, 13 SCRA [1984] 631).
the Philippine Patent Office and a copy
thereof was received by counsel for This deadly and moral deficiency in the motion for
petitioner-appellant on October 3, 1984 reconsideration, therefore, resulted in the decision of
— not October 9, 1984 as stated in the the Philippine Patent Office being final and executory
Notice of Appeal. There can be no doubt on October 19, 1984, the day after the motion for
about the decision having been received reconsideration was filed, said motion having been
by petitioner-appellant's counsel filed on the 15th and last day for appealing.
on October 3, 1984 for this is clearly
written in the Notice of Decision (p. 61, WHEREFORE, the motion of respondent appellee is
Original Record), and in point of fact the hereby granted and the appeal dismissed.
date of receipt cannot be October 9, SO ORDERED. (Rollo 42-43)
1984, as declared in the Notice of Appeal
(p. 1, Rollo), because in the motion for This case arose from petition filed by petitioner for the cancellation of
reconsideration subsequently filed by the registration of trademark CHARLIE BROWN (Registration No.
petitioner-appellant it was stated that a SR. 4224) in the name of respondent MUNSINGWEAR in Inter Partes
copy of the decision was received Case No. 1350 entitled "United Feature Syndicate, Inc. v.
on October 4, 1984 (p. 80, Original Munsingwear Creation Mfg. Co.", with the Philippine Patent Office
Record). alleging that petitioner is damaged by the registration of the
trademark CHARLIE BROWN of T-Shirts under Class 25 with the ITS APPEAL ON STRICT TECHNICAL RULES OF
Registration No. SR-4224 dated September 12, 1979 in the name of PROCEDURE AS ENUNCIATED IN RULE 15 OF THE
Munsingwear Creation Manufacturing Co., Inc., on the following RULES OF COURT INSTEAD OF RELYING ON THE
grounds: (1) that respondent was not entitled to the registration of the POLICY OF THE PHILIPPINE PATENT OFFICE AS
mark CHARLIE BROWN, & DEVICE at the time of application for STRESSED IN RULE 169, AS AMENDED, OF THE
registration; (2) that CHARLIE BROWN is a character creation or a RULES OF PRACTICE IN TRADEMARK CASES.
pictorial illustration, the copyright to which is exclusively owned II
worldwide by the petitioner; (3) that as the owner of the pictorial WHETHER THE RESPONDENT COURT OF APPEALS
illustration CHARLIE BROWN, petitioner has since 1950 and COMMITTED GRAVE ABUSE OF DISCRETION
continuously up to the present, used and reproduced the same to the AMOUNTING TO EXCESS OF JURISDICTION WHEN
exclusion of others; (4) that the respondent-registrant has no bona BY DISMISSING THE APPEAL TO IT FROM THE
fide use of the trademark in commerce in the Philippines prior to its DECISION OF THE DIRECTOR OF PATENTS, IT
application for registration. (Petition, p. 2, Rollo, p. 8) KNOWINGLY DISREGARDED ITS OWN DECISION
On October 2, 1984 the Director of the Philippine Patent Office IN AC-GR. SP. NO. 0342, WHICH WAS AFFIRMED
rendered a decision in this case holding that a copyright registration BY THIS HONORABLE SUPREME COURT TO THE
like that of the name and likeness of CHARLIE BROWN may not EFFECT THAT A COPYRIGHTED CHARACTER MAY
provide a cause of action for the cancellation of a trademark NOT BE APPROPRIATED AS A TRADEMARK BY
registration, (Petition, p. 4; Rollo, p. 10 ) ANOTHER UNDER PRESIDENTIAL DECREE NO. 49.
Petitioner filed a motion for reconsideration of the decision rendered III
by the Philippine Patent Office which was denied by the Director of WHETHER, ASSUMING ARGUENDO, BUT ONLY
said office on the ground that the Decision No. 84-83 was already final ASSUMING, THAT THE DECISION OF THE
and executory (Petition, Rollo, pp. 11-12). DIRECTOR OF PATENTS IN THE CASE AT BAR HAD
ALREADY BECOME FINAL WHEN IT WAS
From this decision, petitioner-appellant appealed to the Court of APPEALED TO THE COURT OF APPEALS, THE
Appeals and respondent court in its resolution dated September 16, LATTER, BY REASON OF THE SUPERVENING
1986 denied the appeal. While the Motion for Reconsideration was FACTS AFTER THE DECISION APPEALED FROM
filed on time, that is, on the last day within which to appeal, still it is a WAS RENDERED, SHOULD HAVE HARMONIZED
mere scrap of paper because there was no, date, of hearing stated THE DECISION WITH LAW, THE DEMANDS OF
therein. JUSTICE AND EQUITY.

Subsequently, petitioner-appellant filed a motion for reconsideration The petitioner is impressed with merit.
which public respondent denied for lack of merit( Annex "B", Rollo p.
45).. Petitioner's contention that the purpose of a notice of hearing to the
Hence this petition for review on certiorari. adverse party is to afford him an opportunity to resist the motion,
more particularly the motion for reconsideration filed by its company
In the resolution of April 6, 1987, the petition was given due course. is well taken. Said purpose was served when Munsingwear filed its
In its petition (Rollo, p. 10) and in its memorandum (Rollo, p. 97), opposition thereto on November 20, 1984 and cured the technical
petitioner-appellant raised the following legal issues: defect of lack of notice of hearing complained of (Rollo, p. 52).
I Otherwise stated such shortcomings of petitioner as to compliance
WHETHER THE RESPONDENT COURT OF APPEALS with procedural requirements in taking its appeal cannot be deemed
ACTED IN EXCESS OF JURISDICTION AND/OR sufficient to deprive it of a chance to secure a review by this court in
COMMITTED GRAVE ABUSE OF DISCRETION order to obtain substantial justice; more so where liverality accorded
WHEN IT BASED ITS RESOLUTION IN DISMISSING to the petitioner becomes compelling because of the ostensible merit
of petitioner's case (Olango v. Court of First Instance of Misamis are cited in G.R. No. 76595, Pacific Asia Overseas Shipping
Oriental, 121 SCRA 338 [1983]). Corporation v. NLRC, et al., May 6, 1988.
Moreover, in Siguenza v. Court of Appeals, (137 SCRA 570 [1985])
the Court stressed that the right to appeal should not be lightly Procedural technicality should not prevail over substantive rights of a
disregarded by a stringent application of rules of procedure especially party to appeal (NEA v. CA, 126 SCRA 394).
where the appeal is on its face meritorious and the interest of Moreover, a judgment of the Court of Appeals that become final by
substantial justice would be served by permitting the appeal. reason of the mistake of the herein petitioner's lawyer may still be
reviewed on appeal by the Supreme Court particularly where the
As enunciated in the case of Castro v. Court of Appeals (123 SCRA Supreme Court already gave due course to the petition for review
782, [1983]) the importance and real purpose of the remedy of appeal (Ernesto v. Court of Appeals, 116 SCRA 755 [1982]).
was stressed as follows:
An appeal is an essential part of oar judicial Where strong considerations of substantial justice are manifest in the
system. We have advised the courts to proceed with petition, this Court may relax the stringent application of technical
caution so as not to deprive a party of the right to rules in the exercise of equity jurisdiction. In addition to the basic
appeal. (National Waterworks and Sewerage Authority merits of the main case, such petition usually embodies justifying
v. Municipality of Libmanan, 97 SCRA 138) and circumstances which warrant our heeding the petitioner's cry for
instructed that every party-litigant should beafforded justice, inspite of the earlier negligence of counsel (Serrano v. Court of
the amplest opportunity for the proper and just Appeals et al., 139 SCRA 179 [1985]).
disposition of his cause, freed from the constraints of
technicalities. (A-One Feeds, Inc. v. Court of Appeals, In a number of cases, this Court in the exercise of equity jurisdiction
100 SCRA 590). decided to disregard technicalities in order to resolve the case on its
The rules of procedure are not to be applied in a very merits based on the evidence (St. Peter Memorial Park, Inc. et al. v.
rigid and technical sense. The rules of procedure are Cleofas, 121 SCRA 287, [1983]; Helmuth, Jr. v. People of the
used only to help secure not override substantial Philippines, 112 SCRA 573 [1983]).
justice. (Gregorio v. Court of Appeals, 72 SCRA 120),
therefore, we ruled in Republic v. Court of Appeals (83 This case was brought before this Court for the resolution of the
SCRA 453) that a six day delay in the perfection of the dismissal of the appeal filed by petitioner-appellant from the decision
appeal does not warrant its dismissal. And again of the Director of the Philippines Patent Office for being filed out of
in Ramos v. Bagaso, 96 SCRA 395, this Court held time. The normal action to take thereafter, would be to remand this
that the delay of four (4) days in filing a notice of case to the Court of Appeals for further proceedings. However, in line
appeal and a motion for extension of time to file a with jurisprudence, such time consuming procedure may be properly
record on appeal can be excused on the basis of equity. dispensed with to resolve the issue (Quisumbing v. Court of Appeals,
122 SCRA 709 [1983]) where there is enough basis to end the basic
It was further emphasized that we allowed the filing of an appeal in controversy between the parties here and now. In the case at bar
some cases where a stringent application of the rules would have dispensing with such procedural steps would not anyway affect
denied it, or when to do so would serve the demands of substantial substantially the merits of their respective claims as held in Velasco v.
justice and in the exercise of our equity jurisdiction (Serrano v. Court Court of Appeals, (95 SCRA 621 [1980] cited in Ortigas & Co. Ltd. v.
of Appeals, 139 SCRA 179 [1085].) Ruiz, 148 SCRA [1987] hence the need for this Court to broaden its
inquiry in this case land decide the same on the merits rather than
In the case at bar, the petitioner's delay in filing their record on merely resolve the procedural question raised (Dorado v. Court of
appeal should not be strictly construed as to deprive them of the right Appeals, 153 SCRA 420 [1987]; De Lima v. Laguna Tayabas Co., 160
to appeal especially since on its face the appeal appears to be SCRA 70 [1988]).
impressed with merit. (Emphasis supplied). All aforementioned cases
Petitioner contends that it will be damaged by the registration of the Therefore, since the name "CHARLIE BROWN" and its pictorial
trademark CHARLIE BROWN & DEVICE in favor of private representation were covered by a copyright registration way back in
respondent and that it has a better right to CHARLIE BROWN & 1950 the same are entitled to protection under PD No. 49.
DEVICE since the likeness of CHARLIE BROWN appeared in Aside from its copyright registration, petitioner is also the owner of
periodicals having worldwide distribution and covered by copyright several trademark registrations and application for the name and
registration in its name which antedates the certificate of registration likeness of "CHARLIE BROWN" which is the duly registered
of respondent issued only on September 12, 1979. (Petition, Rollo, p. trademark and copyright of petitioner United Feature Syndicate Inc.
21). as early as 1957 and additionally also as TV SPECIALS featuring the
Petitioner further stresses that Decision No. 84-83 (TM) promulgated "PEANUTS" characters "CHARLIE BROWN" (Memorandum, Rollo p.
by the Philippine Patent Office on October 2, 1984 which held that 97 [211]).
"the name likeness of CHARLIE BROWN may not provide a cause of An examination of the records show that the only appreciable defense
action for the cancellation of a trademark registration," was based in of respondent-registrant is embodied in its answer, which reads:
the conclusion made in the case of "Children's Television Workshop v.
touch of Class" earlier decided by the Director of Patent Office on May It uses, the trademark "CHARLIE BROWN" &
10, 1984. However, when the latter case was appealed to the then "DEVICE" on children's wear such as T-shirts,
Intermediate Appellate Court, docketed as A.C. G.R. SP No. 03432, undershirts, sweaters, brief and sandos, in class 25;
the appellate court reversed the decision of the Director holding said whereas "CHARLIE BROWN" is used only by
appealed decision as illegal and contrary to law. this reversal was petitioner as character, in a pictorial illustration used
affirmed by this Court on August 7, 1985 in G.R. No. 71210 by denying in a comic strip appearing in newspapers and
the petition of respondent Touch of Class. magazines. It has no trademark significance and
therefore respondent-registrant's use of "CHARLIE
The Court of Appeals in reversing the Director of Patent's decision in BROWN" & "DEVICE" is not in conflict with the
Touch of Class, Inc. succintly said: petitioner's use of "CHARLIE BROWN" (Rollo, p. 97
[21]).
The Patents Office ruled that a trademark, unlike a
label, cannot be copyrighted. The "Cookie Monster" is It is undeniable from the records that petitioner is the actual owner of
not, however, a trademark. It is a character in a TV said trademark due to its prior registration with the Patent's Office.
series entitled "Sesame Street." It was respondent Finally, in La Chemise Lacoste S.A. v. Hon. Oscar Fernandez &
which appropriated the "Cookie Monster" as a Gobindram Hemandas Sujanani v. Hon. Roberto V. Ongpin, et
trademark, after it has been copyrighted. We hold that al. 129 SCRA 373 [1984]), the Court declared.
the exclusive right secured by PD 49 to the petitioner
precludes the appropriation of the "Cookie Monster" by In upholding the right of the petitioner to maintain the
the respondent. present suit before our courts for unfair competition or
Pertinently, Section 2 of Presidential Decree No. 49, otherwise known infringement of trademarks of a foreign corporation,
as the "Decree on Intellectual Property", provides: we are moreover recognizing our duties and the rights
Section 2. The rights granted by this Decree shall, from of foregoing states under the Paris Convention for the
the moment of creation, subsist with respect to any of Protection of Industrial Property to which the
the following classes of works: Philippines and (France) U.S. are parties. We are
xxx xxx xxx simply interpreting a solemn international
(O) Prints, pictorial illustrations, advertising copies, commitment of the Philippines embodied in a
labels, tags and box wraps. ... multilateral treaty to which we are a party and which
we entered into because it is in our national interest to
do so.
PREMISES CONSIDERED, the Resolutions of the Court of Appeals
dated September 16, 1985 and October 14, 1986 dismissing
petitioner's appeal are hereby SET ASIDE and Certificate of
Registration no. SR-424 issued to private respondent dated
September 12, 1979 is hereby CANCELLED.
SO ORDERED.
JESSIE G. CHING, petitioner, vs. WILLIAM M. SALINAS, b.) Undetermined quantity of Leaf spring eye bushing for
SR., WILLIAM M. SALINAS, JR., JOSEPHINE L. automobile that are made up of polyvinyl chloride
SALINAS, JENNIFER Y. SALINAS, ALONTO plastic;
SOLAIMAN SALLE, JOHN ERIC I. SALINAS, NOEL M. c.) Undetermined quantity of Vehicle bearing cushion that is
YABUT (Board of Directors and Officers of made up of polyvinyl chloride plastic;
WILAWARE PRODUCT d.) Undetermined quantity of Dies and jigs, patterns and
CORPORATION), respondents. flasks used in the manufacture/fabrication of items a to
DECISION d;
CALLEJO, SR., J.: e.) Evidences of sale which include delivery receipts, invoices
and official receipts.[6]
This petition for review on certiorari assails the Decision[1] and
Resolution[2] of the Court of Appeals (CA) in CA-G.R. SP No. 70411 The RTC granted the application and issued Search Warrant Nos.
affirming the January 3, 2002 and February 14, 2002 Orders [3] of the 01-2401 and 01-2402 for the seizure of the aforecited articles. [7] In the
Regional Trial Court (RTC) of Manila, Branch 1, which quashed and inventory submitted by the NBI agent, it appears that the following
set aside Search Warrant Nos. 01-2401 and 01-2402 granted in favor articles/items were seized based on the search warrants:
of petitioner Jessie G. Ching. Leaf Spring eye bushing

Jessie G. Ching is the owner and general manager of Jeshicris a) Plastic Polypropylene
Manufacturing Co., the maker and manufacturer of a Utility Model, - C190 27 }
described as Leaf Spring Eye Bushing for Automobile made up of - C240 rear 40 }
plastic. - C240 front 41 } BAG 1
b) Polyvinyl Chloride Plastic
On September 4, 2001, Ching and Joseph Yu were issued by the - C190 13 }
National Library Certificates of Copyright Registration and Deposit of c) Vehicle bearing cushion
the said work described therein as Leaf Spring Eye Bushing for - center bearing cushion 11 }
Automobile.[4] Budder for C190 mold 8 }
Diesel Mold
On September 20, 2001, Ching requested the National Bureau of a) Mold for spring eye bushing rear 1 set
Investigation (NBI) for police/investigative assistance for the b) Mold for spring eye bushing front 1 set
apprehension and prosecution of illegal manufacturers, producers c) Mold for spring eye bushing for C190 1 set
and/or distributors of the works.[5] d) Mold for C240 rear 1 piece of the
set
After due investigation, the NBI filed applications for search e) Mold for spring eye bushing for L300 2 sets
warrants in the RTC of Manila against William Salinas, Sr. and the f) Mold for leaf spring eye bushing C190
officers and members of the Board of Directors of Wilaware Product with metal 1 set
Corporation. It was alleged that the respondents therein reproduced g) Mold for vehicle bearing cushion 1 set[8]
and distributed the said models penalized under Sections 177.1 and
177.3 of Republic Act (R.A.) No. 8293. The applications sought the The respondents filed a motion to quash the search warrants on
seizure of the following: the following grounds:
2. The copyright registrations were issued in violation of the
a.) Undetermined quantity of Leaf spring eye bushing for Intellectual Property Code on the ground that:
automobile that are made up of plastic polypropylene; a) the subject matter of the registrations are not artistic
or literary;
b) the subject matter of the registrations are spare parts On September 26, 2003, the CA rendered judgment dismissing
of automobiles meaning there (sic) are original the petition on its finding that the RTC did not commit any grave
parts that they are designed to replace. Hence, they abuse of its discretion in issuing the assailed order, to wit:
are not original.[9] It is settled that preliminarily, there must be a finding that a specific
offense must have been committed to justify the issuance of a search
The respondents averred that the works covered by the warrant. In a number of cases decided by the Supreme Court, the
certificates issued by the National Library are not artistic in nature; same is explicitly provided, thus:
they are considered automotive spare parts and pertain to technology.
They aver that the models are not original, and as such are the proper The probable cause must be in connection with one specific offense,
subject of a patent, not copyright.[10] and the judge must, before issuing the warrant, personally examine in
the form of searching questions and answers, in writing and under
In opposing the motion, the petitioner averred that the court oath, the complainant and any witness he may produce, on facts
which issued the search warrants was not the proper forum in which personally known to them and attach to the record their sworn
to articulate the issue of the validity of the copyrights issued to him. statements together with any affidavit submitted.
Citing the ruling of the Court in Malaloan v. Court of Appeals,[11] the
petitioner stated that a search warrant is merely a judicial process In the determination of probable cause, the court must necessarily
designed by the Rules of Court in anticipation of a criminal case. Until resolve whether or not an offense exists to justify the issuance or
his copyright was nullified in a proper proceeding, he enjoys rights of quashal of the search warrant.
a registered owner/holder thereof.
In the instant case, the petitioner is praying for the reinstatement of
On January 3, 2002, the trial court issued an Order  granting
[12]
the search warrants issued, but subsequently quashed, for the offense
the motion, and quashed the search warrant on its finding that there of Violation of Class Designation of Copyrightable Works under
was no probable cause for its issuance. The court ruled that the work Section 177.1 in relation to Section 177.3 of Republic Act 8293, when
covered by the certificates issued to the petitioner pertained to the objects subject of the same, are patently not copyrightable.
solutions to technical problems, not literary and artistic as provided in
Article 172 of the Intellectual Property Code. It is worthy to state that the works protected under the Law on
Copyright are: literary or artistic works (Sec. 172) and derivative
His motion for reconsideration of the order having been denied works (Sec. 173). The Leaf Spring Eye Bushing and Vehicle Bearing
by the trial courts Order of February 14, 2002, the petitioner filed a Cushion fall on neither classification. Accordingly, if, in the first place,
petition for certiorari in the CA, contending that the RTC had no the item subject of the petition is not entitled to be protected by the
jurisdiction to delve into and resolve the validity of the copyright law on copyright, how can there be any violation? [14]
certificates issued to him by the National Library. He insisted that his
works are covered by Sections 172.1 and 172.2 of the Intellectual The petitioners motion for reconsideration of the said decision
Property Code. The petitioner averred that the copyright certificates suffered the same fate. The petitioner forthwith filed the present
are prima facie evidence of its validity, citing the ruling of the United petition for review on certiorari, contending that the revocation of his
States Court of Appeals in Wildlife Express Corporation v. Carol copyright certificates should be raised in a direct action and not in a
Wright Sales, Inc.[13] The petitioner asserted that the respondents search warrant proceeding.
failed to adduce evidence to support their motion to quash the search The petitioner posits that even assuming ex argumenti that the
warrants. The petitioner noted that respondent William Salinas, Jr. trial court may resolve the validity of his copyright in a proceeding to
was not being honest, as he was able to secure a similar copyright quash a search warrant for allegedly infringing items, the RTC
registration of a similar product from the National Library on January committed a grave abuse of its discretion when it declared that his
14, 2002. works are not copyrightable in the first place. He claims that R.A. No.
8293, otherwise known as the Intellectual Property Code of the
Philippines, which took effect on January 1, 1998, provides in no it is enough that there exists a reasonable suspicion of the commission
uncertain terms that copyright protection automatically attaches to a of the offense.
work by the sole fact of its creation, irrespective of its mode or form of
expression, as well as of its content, quality or purpose. [15] The law The petitioner contends that he has in his favor the benefit of the
gives a non-inclusive definition of work as referring to original presumption that his copyright is valid; hence, the burden of
intellectual creations in the literary and artistic domain protected overturning this presumption is on the alleged infringers, the
from the moment of their creation; and includes original ornamental respondents herein. But this burden cannot be carried in a hearing on
designs or models for articles of manufacture, whether or not a proceeding to quash the search warrants, as the issue therein is
registrable as an industrial design and other works of applied art whether there was probable cause for the issuance of the search
under Section 172.1(h) of R.A. No. 8293. warrant. The petitioner concludes that the issue of probable cause
should be resolved without invalidating his copyright.
As such, the petitioner insists, notwithstanding the classification
of the works as either literary and/or artistic, the said law, likewise, In their comment on the petition, the respondents aver that the
encompasses works which may have a bearing on the utility aspect to work of the petitioner is essentially a technical solution to the problem
which the petitioners utility designs were classified. Moreover, of wear and tear in automobiles, the substitution of materials, i.e.,
according to the petitioner, what the Copyright Law protects is the from rubber to plastic matter of polyvinyl chloride, an oil resistant soft
authors intellectual creation, regardless of whether it is one with texture plastic material strong enough to endure pressure brought
utilitarian functions or incorporated in a useful article produced on an about by the vibration of the counter bearing and thus brings
industrial scale. bushings. Such work, the respondents assert, is the subject of
copyright under Section 172.1 of R.A. No. 8293. The respondents posit
The petitioner also maintains that the law does not provide that that a technical solution in any field of human activity which is novel
the intended use or use in industry of an article eligible for patent bars may be the subject of a patent, and not of a copyright. They insist that
or invalidates its registration under the Law on Copyright. The test of the certificates issued by the National Library are only certifications
protection for the aesthetic is not beauty and utility, but art for the that, at a point in time, a certain work was deposited in the said office.
copyright and invention of original and ornamental design for design Furthermore, the registration of copyrights does not provide for
patents.[16] In like manner, the fact that his utility designs or models automatic protection. Citing Section 218.2(b) of R.A. No. 8293, the
for articles of manufacture have been expressed in the field of respondents aver that no copyright is said to exist if a party
automotive parts, or based on something already in the public domain categorically questions its existence and legality. Moreover, under
does not automatically remove them from the protection of the Law Section 2, Rule 7 of the Implementing Rules of R.A. No. 8293, the
on Copyright.[17] registration and deposit of work is not conclusive as to copyright
outlay or the time of copyright or the right of the copyright owner. The
The petitioner faults the CA for ignoring Section 218 of R.A. No. respondents maintain that a copyright exists only when the work is
8293 which gives the same presumption to an affidavit executed by an covered by the protection of R.A. No. 8293.
author who claims copyright ownership of his work.
The petition has no merit.
The petitioner adds that a finding of probable cause to justify the
issuance of a search warrant means merely a reasonable suspicion of The RTC had jurisdiction to delve into and resolve the issue
the commission of the offense. It is not equivalent to absolute whether the petitioners utility models are copyrightable and, if so,
certainty or a finding of actual and positive cause. [18] He assists that whether he is the owner of a copyright over the said models. It bears
the determination of probable cause does not concern the issue of stressing that upon the filing of the application for search warrant, the
whether or not the alleged work is copyrightable. He maintains that to RTC was duty-bound to determine whether probable cause existed, in
justify a finding of probable cause in the issuance of a search warrant, accordance with Section 4, Rule 126 of the Rules of Criminal
Procedure:
existence and the validity of his copyright because in the absence of
SEC. 4. Requisite for issuing search warrant. A search warrant shall copyright protection, even original creation may be freely copied. [25]
not issue but upon probable cause in connection with one specific
offense to be determined personally by the judge after examination By requesting the NBI to investigate and, if feasible, file an
under oath or affirmation of the complainant and the witnesses he application for a search warrant for infringement under R.A. No. 8293
may produce, and, particularly, describing the place to be searched against the respondents, the petitioner thereby authorized the RTC (in
and the things to be seized. resolving the application), to delve into and determine the validity of
the copyright which he claimed he had over the utility models. The
In Solid Triangle Sales Corporation v. The Sheriff of RTC QC , Br. petitioner cannot seek relief from the RTC based on his claim that he
93,[19] the Court held that in the determination of probable cause, the was the copyright owner over the utility models and, at the same time,
court must necessarily resolve whether or not an offense exists to repudiate the courts jurisdiction to ascertain the validity of his claim
justify the issuance of a search warrant or the quashal of one already without running afoul to the doctrine of estoppel.
issued by the court. Indeed, probable cause is deemed to exist only
where facts and circumstances exist which could lead a reasonably To discharge his burden, the applicant may present the certificate
cautious and prudent man to believe that an offense has been of registration covering the work or, in its absence, other evidence.
committed or is being committed. Besides, in Section 3, Rule 126 of [26]
 A copyright certificate provides prima facieevidence of originality
the Rules of Criminal Procedure, a search warrant may be issued for which is one element of copyright validity. It constitutes prima
the search and seizure of personal property (a) subject of the offense; facie evidence of both validity and ownership[27] and the validity of the
(b) stolen or embezzled and other proceeds or fruits of the offense; or facts stated in the certificate.[28] The presumption of validity to a
(c) used or intended to be used as the means of committing an offense. certificate of copyright registration merely orders the burden of proof.
The applicant should not ordinarily be forced, in the first instance, to
The RTC is mandated under the Constitution and Rules of prove all the multiple facts that underline the validity of the copyright
Criminal Procedure to determine probable cause. The court cannot unless the respondent, effectively challenging them, shifts the burden
abdicate its constitutional obligation by refusing to determine whether of doing so to the applicant. [29] Indeed, Section 218.2 of R.A. No. 8293
an offense has been committed.[20] The absence of probable cause will provides:
cause the outright nullification of the search warrant. [21]
218.2. In an action under this Chapter:
For the RTC to determine whether the crime for infringement
under R.A. No. 8293 as alleged in an application is committed, the (a) Copyright shall be presumed to subsist in the work or other subject
petitioner-applicant was burdened to prove that (a) respondents matter to which the action relates if the defendant does not put in
Jessie Ching and Joseph Yu were the owners of copyrighted material; issue the question whether copyright subsists in the work or other
and (b) the copyrighted material was being copied and distributed by subject matter; and
the respondents. Thus, the ownership of a valid copyright is essential. (b) Where the subsistence of the copyright is established, the plaintiff
[22]
shall be presumed to be the owner of the copyright if he claims to be
the owner of the copyright and the defendant does not put in issue the
Ownership of copyrighted material is shown by proof of question of his ownership.
originality and copyrightability. By originality is meant that the A certificate of registration creates no rebuttable presumption of
material was not copied, and evidences at least minimal creativity; copyright validity where other evidence in the record casts doubt on
that it was independently created by the author and that it possesses the question. In such a case, validity will not be presumed.[30]
at least same minimal degree of creativity. [23] Copying is shown by
proof of access to copyrighted material and substantial similarity To discharge his burden of probable cause for the issuance of a
between the two works.[24] The applicant must thus demonstrate the search warrant for violation of R.A. No. 8293, the petitioner-applicant
submitted to the RTC Certificate of Copyright Registration Nos. 2001-
197 and 2001-204 dated September 3, 2001 and September 4, 2001,
respectively, issued by the National Library covering work identified As gleaned from the description of the models and their
as Leaf Spring Eye Bushing for Automobile and Vehicle Bearing objectives, these articles are useful articles which are defined as one
Cushion both classified under Section 172.1(h) of R.A. No. 8293, to having an intrinsic utilitarian function that is not merely to portray
wit: the appearance of the article or to convey information. Indeed, while
works of applied art, original intellectual, literary and artistic works
SEC. 172. Literary and Artistic Works. 172.1. Literary and artistic are copyrightable, useful articles and works of industrial design are
works, hereinafter referred to as works, are original intellectual not.[35] A useful article may be copyrightable only if and only to the
creations in the literary and artistic domain protected from the extent that such design incorporates pictorial, graphic, or sculptural
moment of their creation and shall include in particular: features that can be identified separately from, and are capable of
... existing independently of the utilitarian aspects of the article.
(h) Original ornamental designs or models for articles of manufacture,
whether or not registrable as an industrial design, and other works of We agree with the contention of the petitioner (citing Section
applied art. 171.10 of R.A. No. 8293), that the authors intellectual creation,
regardless of whether it is a creation with utilitarian functions or
Related to the provision is Section 171.10, which provides that a incorporated in a useful article produced on an industrial scale, is
work of applied art is an artistic creation with utilitarian functions or protected by copyright law. However, the law refers to a work of
incorporated in a useful article, whether made by hand or produced applied art which is an artistic creation. It bears stressing that there is
on an industrial scale. no copyright protection for works of applied art or industrial design
which have aesthetic or artistic features that cannot be identified
But, as gleaned from the specifications appended to the separately from the utilitarian aspects of the article. [36] Functional
application for a copyright certificate filed by the petitioner, the said components of useful articles, no matter how artistically designed,
Leaf Spring Eye Bushing for Automobile is merely a utility model have generally been denied copyright protection unless they are
described as comprising a generally cylindrical body having a co-axial separable from the useful article.[37]
bore that is centrally located and provided with a perpendicular flange
on one of its ends and a cylindrical metal jacket surrounding the In this case, the petitioners models are not works of applied art,
peripheral walls of said body, with the bushing made of plastic that is nor artistic works. They are utility models, useful articles, albeit with
either polyvinyl chloride or polypropylene. [31] Likewise, the Vehicle no artistic design or value. Thus, the petitioner described the utility
Bearing Cushion is illustrated as a bearing cushion comprising a model as follows:
generally semi-circular body having a central hole to secure a LEAF SPRING EYE BUSHING FOR AUTOMOBILE
conventional bearing and a plurality of ridges provided therefore, with
said cushion bearing being made of the same plastic materials. Known bushings inserted to leaf-spring eye to hold leaf-springs of
[32]
 Plainly, these are not literary or artistic works. They are not automobile are made of hard rubber. These rubber bushings after a
intellectual creations in the literary and artistic domain, or works of time, upon subjecting them to so much or intermittent pressure would
applied art. They are certainly not ornamental designs or one having eventually wore (sic) out that would cause the wobbling of the leaf
decorative quality or value. spring.
It bears stressing that the focus of copyright is the usefulness of The primary object of this utility model, therefore, is to provide a leaf-
the artistic design, and not its marketability. The central inquiry is spring eye bushing for automobile that is made up of plastic.
whether the article is a work of art. [33] Works for applied art include all
original pictorials, graphics, and sculptural works that are intended to Another object of this utility model is to provide a leaf-spring eye
be or have been embodied in useful article regardless of factors such bushing for automobiles made of polyvinyl chloride, an oil resistant
as mass production, commercial exploitation, and the potential soft texture plastic or polypropylene, a hard plastic, yet both causes
availability of design patent protection.[34]
cushion to the leaf spring, yet strong enough to endure pressure thereto, and, in effect, would lengthen the life and replacement
brought about by the up and down movement of said leaf spring. therefor.

Yet, an object of this utility model is to provide a leaf-spring eye Figure 3, on the other hand, shows the walls 16 of the co-axial bore 12
bushing for automobiles that has a much longer life span than the of said bushing 10 is insertably provided with a steel tube 17 to
rubber bushings. reinforce the inner portion thereof. This steel tube 17 accommodates
Still an object of this utility model is to provide a leaf-spring eye or engages with the leaf-spring bolt (not shown) connecting the leaf
bushing for automobiles that has a very simple construction and can spring and the automobiles chassis.
be made using simple and ordinary molding equipment.
Figures 4 and 5 show another embodiment wherein the leaf eye
A further object of this utility model is to provide a leaf-spring eye bushing 10 is elongated and cylindrical as to its construction. Said
bushing for automobile that is supplied with a metal jacket to another embodiment is also made of polypropylene or polyvinyl
reinforce the plastic eye bushing when in engaged with the steel chloride plastic material. The steel tube 17 and metal jacket 14 may
material of the leaf spring. also be applied to this embodiment as an option thereof.[38]

These and other objects and advantages will come to view and be VEHICLE BEARING CUSHION
understood upon a reading of the detailed description when taken in
conjunction with the accompanying drawings. Known bearing cushions inserted to bearing housings for vehicle
Figure 1 is an exploded perspective of a leaf-spring eye bushing propeller shafts are made of hard rubber. These rubber bushings after
according to the present utility model; a time, upon subjecting them to so much or intermittent pressure
Figure 2 is a sectional view taken along line 2-2 of Fig. 1; would eventually be worn out that would cause the wobbling of the
Figure 3 is a longitudinal sectional view of another embodiment of center bearing.
this utility model; The primary object of this utility model therefore is to provide a
Figure 4 is a perspective view of a third embodiment; and vehicle-bearing cushion that is made up of plastic.
Figure 5 is a sectional view thereof.
Referring now to the several views of the drawings wherein like Another object of this utility model is to provide a vehicle bearing
reference numerals designated same parts throughout, there is shown cushion made of polyvinyl chloride, an oil resistant soft texture plastic
a utility model for a leaf-spring eye bushing for automobile generally material which causes cushion to the propellers center bearing, yet
designated as reference numeral 10. strong enough to endure pressure brought about by the vibration of
Said leaf-spring eye bushing 10 comprises a generally cylindrical body the center bearing.
11 having a co-axial bore 12 centrally provided thereof. Yet, an object of this utility model is to provide a vehicle-bearing
As shown in Figs. 1 and 2, said leaf-spring eye bushing 10 is provided cushion that has a much longer life span than rubber bushings.
with a perpendicular flange 13 on one of its ends and a cylindrical
metal jacket 14 surrounding the peripheral walls 15 of said body 11. Still an object of this utility model is to provide a vehicle bearing
When said leaf-spring bushing 10 is installed, the metal jacket 14 acts cushion that has a very simple construction and can be made using
with the leaf-spring eye (not shown), which is also made of steel or simple and ordinary molding equipment.
cast steel. In effect, the bushing 10 will not be directly in contact with
steel, but rather the metal jacket, making the life of the bushing 10 These and other objects and advantages will come to view and be
longer than those without the metal jacket. understood upon a reading of the detailed description when taken in
conjunction with the accompanying drawings.
In Figure 2, the bushing 10 as shown is made of plastic, preferably
polyvinyl chloride, an oil resistant soft texture plastic or a hard Figure 1 is a perspective view of the present utility model for a vehicle-
polypropylene plastic, both are capable to endure the pressure applied bearing cushion; and
Neither are we to regard the Leaf Spring Eye Bushing and Vehicle
Figure 2 is a sectional view thereof. Bearing Cushion as included in the catch-all phrase other literary,
scholarly, scientific and artistic works in Section 172.1(a) of R.A. No.
Referring now to the several views of the drawing, wherein like 8293. Applying the principle of ejusdem generis which states that
reference numeral designate same parts throughout, there is shown a where a statute describes things of a particular class or kind
utility model for a vehicle-bearing cushion generally designated as accompanied by words of a generic character, the generic word will
reference numeral 10. usually be limited to things of a similar nature with those particularly
enumerated, unless there be something in the context of the state
Said bearing cushion 10 comprises of a generally semi-circular body which would repel such inference,[46] the Leaf Spring Eye Bushing and
11, having central hole 12 to house a conventional bearing (not Vehicle Bearing Cushion are not copyrightable, being not of the same
shown). As shown in Figure 1, said body 11 is provided with a plurality kind and nature as the works enumerated in Section 172 of R.A. No.
of ridges 13 which serves reinforcing means thereof. 8293.

The subject bearing cushion 10 is made of polyvinyl chloride, a soft No copyright granted by law can be said to arise in favor of the
texture oil and chemical resistant plastic material which is strong, petitioner despite the issuance of the certificates of copyright
durable and capable of enduring severe pressure from the center registration and the deposit of the Leaf Spring Eye Bushing and
bearing brought about by the rotating movement of the propeller shaft Vehicle Bearing Cushion. Indeed, in Joaquin, Jr. v.
of the vehicle.[39] Drilon[47] and Pearl & Dean (Phil.), Incorporated v. Shoemart,
Incorporated,[48] the Court ruled that:
A utility model is a technical solution to a problem in any field of
human activity which is new and industrially applicable. It may be, or Copyright, in the strict sense of the term, is purely a statutory right. It
may relate to, a product, or process, or an improvement of any of the is a new or independent right granted by the statute, and not simply a
aforesaid.[40] Essentially, a utility model refers to an invention in the pre-existing right regulated by it. Being a statutory grant, the rights
mechanical field. This is the reason why its object is sometimes are only such as the statute confers, and may be obtained and enjoyed
described as a device or useful object.[41] A utility model varies from an only with respect to the subjects and by the persons, and on terms and
invention, for which a patent for invention is, likewise, available, on at conditions specified in the statute. Accordingly, it can cover only the
least three aspects: first, the requisite of inventive step [42] in a patent works falling within the statutory enumeration or description.
for invention is not required; second, the maximum term of protection
is only seven years[43] compared to a patent which is twenty years, That the works of the petitioner may be the proper subject of a
[44]
 both reckoned from the date of the application; and third, the patent does not entitle him to the issuance of a search warrant for
provisions on utility model dispense with its substantive violation of copyright laws. In Kho v. Court of Appeals[49] and Pearl &
examination[45] and prefer for a less complicated system. Dean (Phil.), Incorporated v. Shoemart, Incorporated,[50] the Court
Being plain automotive spare parts that must conform to the ruled that these copyright and patent rights are completely distinct
original structural design of the components they seek to replace, the and separate from one another, and the protection afforded by one
Leaf Spring Eye Bushing and Vehicle Bearing Cushion are not cannot be used interchangeably to cover items or works
ornamental. They lack the decorative quality or value that must that exclusively pertain to the others. The Court expounded further,
characterize authentic works of applied art. They are not even artistic thus:
creations with incidental utilitarian functions or works incorporated
in a useful article. In actuality, the personal properties described in Trademark, copyright and patents are different intellectual property
the search warrants are mechanical works, the principal function of rights that cannot be interchanged with one another. A trademark is
which is utility sansany aesthetic embellishment. any visible sign capable of distinguishing the goods (trademark) or
services (service mark) of an enterprise and shall include a stamped or
marked container of goods. In relation thereto, a trade name means
the name or designation identifying or distinguishing an enterprise. [I]f the sole intrinsic function of an article is its utility, the fact that the
Meanwhile, the scope of a copyright is confined to literary and artistic work is unique and attractively shaped will not qualify it as a work of
works which are original intellectual creations in the literary and art.
artistic domain protected from the moment of their creation.
Patentable inventions, on the other hand, refer to any technical In this case, the bushing and cushion are not works of art. They
solution of a problem in any field of human activity which is new, are, as the petitioner himself admitted, utility models which may be
involves an inventive step and is industrially applicable. the subject of a patent.

The petitioner cannot find solace in the ruling of the United IN LIGHT OF ALL THE FOREGOING, the instant petition is
States Supreme Court in Mazer v. Stein[51] to buttress his petition. In hereby DENIED for lack of merit. The assailed Decision and
that case, the artifacts involved in that case were statuettes of dancing Resolution of the Court of Appeals in CA-G.R. SP No. 70411 are
male and female figures made of semi-vitreous china. The controversy AFFIRMED. Search Warrant Nos. 01-2401 and 01-2402 issued on
therein centered on the fact that although copyrighted as works of art, October 15, 2001 are ANNULLED AND SET ASIDE. Costs against the
the statuettes were intended for use and used as bases for table lamps, petitioner.
with electric wiring, sockets and lampshades attached. The issue
raised was whether the statuettes were copyright protected in the SO ORDERED.
United States, considering that the copyright applicant intended
primarily to use them as lamp bases to be made and sold in quantity,
and carried such intentions into effect. At that time, the Copyright
Office interpreted the 1909 Copyright Act to cover works of artistic
craftsmanship insofar as their form, but not the utilitarian aspects,
were concerned. After reviewing the history and intent of the US
Congress on its copyright legislation and the interpretation of the
copyright office, the US Supreme Court declared that the statuettes
were held copyrightable works of art or models or designs for works of
art. The High Court ruled that:
Works of art (Class G) (a) In General. This class includes works of
artistic craftsmanship, in so far as their form but not their mechanical
or utilitarian aspects are concerned, such as artistic jewelry, enamels,
glassware, and tapestries, as well as all works belonging to the fine
arts, such as paintings, drawings and sculpture.
So we have a contemporaneous and long-continued construction of
the statutes by the agency charged to administer them that would
allow the registration of such a statuette as is in question here. [52]

The High Court went on to state that [t]he dichotomy of


protection for the aesthetic is not beauty and utility but art for the
copyright and the invention of original and ornamental design for
design patents. Significantly, the copyright office promulgated a rule
to implement Mazer to wit:

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