CASE DIGEST: Philippine Nut Industry vs. Standards Brands

PHILIPPINE NUT INDUSTRY, INC. vs. STANDARD BRANDS INCORPORATED and TIBURCIO S. EVALLE as Director of Patents

G.R. No. L-23035 July 31, 1975

Facts:

Philippine Nut Industry Inc., a domestic corporation, obtained from the Patent Office on August 10, 1961, a certificate covering the trademark "PHILIPPINE PLANTERS CORDIAL PEANUTS," the label used on its product of salted peanuts.

On May 14, 1962, Standard Brands, a foreign corporation, filed a case with the Director of Patent, asking for the cancellation of Philippine Nut's certificate of registration on the ground that "the registrant was not entitled to register the mark at the time of its application for registration thereof" for the reason that it (Standard Brands) is the owner of the trademark "PLANTERS COCKTAIL PEANUTS" covered by Certificate of Registration No. SR-172, issued by the Patent Office on July 28, 1958.

Thereafter, the Philippine Nut filed its answer invoking the special defense that its registered label is not confusingly similar to that of Standard Brands as the latter alleges.

Respondent Director of Patents gave due course to Standard Brand's petition, ordering the cancellation of Philippine Nut's Certificate of Registration.

Upon denial of the motion for reconsideration, the Philippine Nut petitioned for a review, seeking the reversal of the Director of Patents’ decision.

Issue:

Whether or not the trademark "PHILIPPINE PLANTERS CORDIAL PEANUTS" used by Philippine Nut on its label for salted peanuts with the same coloring scheme and the same lay-out of words, confusingly similar to the trademark "PLANTERS COCKTAIL PEANUTS" used by Standard Brands on its product.

Ruling:

Yes. As to appearance and general impression of the two trademarks, the Supreme Court said it found a very confusing similarity.

The word PLANTERS printed across the upper portion of the label in bold letters easily attracts and catches the eye of the ordinary consumer and it is that word and none other that sticks in his mind when he thinks of salted peanuts.

The Supreme Court also held that although it is true that no producer or manufacturer may have a monopoly of any color scheme or form of words in a label, but when a competitor adopts a distinctive or dominant mark or feature of another's trademark and with it makes use of the same color ensemble, employs similar words written in a style, type and size of lettering almost identical with those found in the other trademark, the intent to pass to the public his product as that of the other is quite obvious. It deceives the public.

Hence, the decision of respondent Director of Patents was affirmed.