ROSARIO C. MAGUAN (formerly ROSARIO C. TAN), petitioner, vs. THE HONORA !E COURT O" A##EA!S $n% SUSANA !

UCHAN, respon%ents. Ambrosio Padilla Law Offices for petitioner. #ARAS, J.:p S&'mitte% on (e)em'er *, +*,, for O&r %e)ision is t-is petition for revie. on )ertior$ri of t-e t.o Resol&tions of t-e Co&rt of Appe$ls, t-e first %$te% /&ly 0, +*,0, settin1 $si%e its (e)ision of "e'r&$ry +0, +*,0 in CA2G.R. No. S#234,30, title% "SUSANA LUCHAN v. Hon. HON A!O" et al." .-erein it r&le% for t-e %ismiss$l of t-e petition for l$)5 of merit $n% $t t-e s$me time n&llifyin1 t-e .rit of prelimin$ry in6&n)tion it -$% previo&sly iss&e%7 $n% t-e se)on%, %$te% Novem'er 4, +*,0, %enyin1 t-e motion for re)onsi%er$tion of t-e first resol&tion $'ove2mentione%. #etitioner is %oin1 '&siness &n%er t-e firm n$me $n% style of S8AN MANU"ACTURING9 .-ile priv$te respon%ent is li5e.ise %oin1 '&siness &n%er t-e firm n$me $n% style of 9SUSANA !UCHAN #O8(ER #U"" MANU"ACTURING.9 It is &n%isp&te% t-$t petitioner is $ p$tent -ol%er of po.%er p&ff n$mely: +. UM24;< (e=ten%e% $n%>or rene.e% &n%er E=tension No. UM2+3* for $ perio% of ? ye$rs from O)to'er 0, +*,+) ;. UM24?3 (e=ten%e% $n%>or rene.e% &n%er E=tension No. UM++3 for $ perio% of ? ye$rs from /$n&$ry ;0, +*,;) <. UM ++@4, for $ perio% of ?ye$rs fromApril ?, +*,4.(#etition, Rollo, pp. 02,). In $ letter %$te% /&ly +3, +*,4 (Anne= 9(9, Rollo, p. @0), petitioner informe% priv$te respon%ent t-$t t-e po.%er p&ffs t-e l$tter is m$n&f$)t&rin1 $n% sellin1 to v$rio&s enterprises p$rti)&l$rly t-ose in t-e )osmeti)s in%&stry, resem'le I%enti)$l or s&'st$nti$lly I%enti)$l po.%er p&ffs of .-i)- t-e former is $ p$tent -ol%er &n%er Re1istr$tion Certifi)$tion Nos. E=tension UM2+3*, E=tension UM2++3 $n% Utility Mo%el No. ++@47 petitioner e=pl$ine% s&)- pro%&)tion $n% s$le )onstit&te infrin1ement of s$i% p$tents $n% t-erefore its imme%i$te %is)ontin&$n)e is %em$n%e%, ot-er.ise it .ill 'e )ompelle% to t$5e 6&%i)i$l $)tion. (Rollo, pp. ,2@). #riv$te respon%ent replie% st$tin1 t-$t -er pro%&)ts $re %ifferent $n% )o&ntere% t-$t petitionerAs p$tents $re voi% 'e)$&se t-e &tility mo%els $pplie% for .ere not ne. $n% p$tent$'le $n% t-e person to .-om t-e p$tents .ere iss&e% .$s not t-e tr&e $n% $)t&$l $&t-or nor .ere -er ri1-ts %erive% from s&)- $&t-or. (T$5en from $lle1$tions in t-e Ans.er, p$r. 4, Rollo, p. *<). An% on /&ly ;?, +*,4, priv$te respon%ent $ss$ile% t-e v$li%ity of t-e p$tents involve% $n% file% .itt-e #-ilippine #$tent Offi)e petitions for )$n)ell$tion of (+) Utility Mo%el !etter #$tent E=tension No. UM2+3* (Inter #$rtes C$se No. @<@, S&s$n$ !&)-$n v. Ros$rio C. T$n), (;) Utility Mo%el !etters #$tent No. UM2++@4 (Inter #$rtes C$se No. @<*, S&s$n$ !&)-$n v. Ros$rio C. T$n), (<) Utility Mo%el !etters #$tent E=tension No. UM2++3 (Inter #$rtes C$se No. @43, S&s$n$ !&)-$n v. Ros$rio C. T$n. (T$5en from $lle1$tions in t-e Ans.er, p$r. +3, Rollo, pp. *42*?). In vie. t-ereof, petitioner, on A&1&st ;4, +*,4, file% $ )ompl$int for %$m$1es .it- in6&n)tion $n% prelimin$ry in6&n)tion $1$inst priv$te respon%ent .it- t-e t-en Co&rt of "irst Inst$n)e of RiB$l, #$si1 r$n)-, %o)5ete% $s Civil C$se No. +**3@, for infrin1in1 t-e $fores$i% letters p$tent, $n% pr$ye%, $mon1 ot-ers, t-$t $ .rit of prelimin$ry in6&n)tion 'e imme%i$tely iss&e% (Compl$int, Rollo, p. *3).

In -er $ns.er, priv$te respon%ent $lle1e% t-$t t-e pro%&)ts s-e is m$n&f$)t&rin1 $n% offerin1 for s$le $re not I%enti)$l, or even only s&'st$nti$lly I%enti)$l to t-e pro%&)ts )overe% 'y petitionerAs p$tents $n%, 'y .$y of $ffirm$tive %efenses, f&rt-er $lle1e% t-$t petitionerAs p$tents in C&estion $re voi% on t-e follo.in1 1ro&n%s: (+) $t t-e time of filin1 of $ppli)$tion for t-e p$tents involve%, t-e &tility mo%els $pplie% for .ere not ne. $n% p$tent$'le &n%er Se). ?? of R.A. +0?, $s $men%e% 'y R.A. @047 $n% (;) t-e person to .-om t-e p$tents .ere iss&e% .$s not t-e tr&e $n% $)t&$l $&t-or of t-e &tility mo%els $pplie% for, $n% neit-er %i% s-e %erive -er ri1-ts from $ny tr&e $n% $)t&$l $&t-or of t-ese &tility mo%els. for t-e follo.in1 re$sons: ($) sin)e ye$rs prior to t-e filin1 of $ppli)$tions for t-e p$tents involve%, po.%er p&ffs of t-e 5in% $pplie% for .ere t-en $lre$%y e=istin1 $n% p&'li)ly 'ein1 sol% in t-e m$r5et7 'ot- in t-e #-ilippines $n% $'ro$%7 $n% (') $ppli)$ntAs )l$ims in -er $ppli)$tions, of 9)onstr&)tion9 or pro)ess of m$n&f$)t&rin1 t-e &tility mo%els $pplie% for, .it- respe)t to UM24;< $n% UM24?3, .ere '&t $ )ompli)$te% $n% impr$)ti)$l version of $n ol%, simple one .-i)- -$s 'een .ell 5no.n to t-e )osmeti)s in%&stry sin)e ye$rs previo&s to -er filin1 of $ppli)$tions, $n% .-i)- 'elon1e% to no one e=)ept to t-e 1ener$l p&'li)7 $n% .it- respe)t to UM++@47 -er )l$im in -er $ppli)$tion of $ &nit$ry po.%er p&ff, .$s '&t $n limit$tion of $ pro%&)t .ell 5no.n to t-e )osmeti)s in%&stry sin)e ye$rs previo&s to -er firin1 of $ppli)$tion, $n% .-i)- 'elon1e% to no one e=)ept to t-e 1ener$l p&'li)7 (Ans.er, Rollo, pp. *<2*4). On Septem'er +@, +*,4, t-e tri$l )o&rt iss&e% $n Or%er (Anne= 9D9, Rollo, p. +;?) 1r$ntin1 t-e prelimin$ry in6&n)tion pr$ye% for 'y petitioner. ConseC&ently, t-e )orrespon%in1 .rit .$s s&'seC&ently iss&e% (Anne= 9D2+9, Rollo, p. +<+) en6oinin1 t-e -erein priv$te respon%ent (t-en %efen%$nt) $n% $ll ot-er persons employe% 'y -er, -er $1ents, serv$nts $n% employees from %ire)tly or in%ire)tly m$n&f$)t&rin1, m$5in1 or )$&sin1 to 'e m$%e, sellin1 or )$&sin1 to 'e sol%, or &sin1 or )$&sin1 to 'e &se% in $))or%$n)e .it-, or em'o%yin1 t-e &tility mo%els of t-e #-ilippine #$tent Offi)e Utility Mo%el !etters #$tent Nos. 4;< (E=tension No. UM2+3*), No. 4?3 (E=tension No. UM2++3), $n% Utility Mo%el No. ++@4 or from infrin1ement &pon or viol$tin1 s$i% letters p$tent in $ny .$y .-$tsoever (Anne= 9 D2+ 9, Rollo, p. +<+). #riv$te respon%ent C&estione% t-e propriety of t-e tri$l )o&rtAs iss&$n)e of t-e 8rit of #relimin$ry In6&n)tion $r1&in1 t-$t sin)e t-ere is still $ pen%in1 )$n)ell$tion pro)ee%in1s 'efore t-e #-ilippine #$tent Offi)e )on)ernin1 petitionerAs p$tents, s&)- )$nnot 'e t-e '$sis for prelimin$ry in6&n)tion (Motion for Re)onsi%er$tion, Rollo, p. +<;). In $n Or%er %$te% Septem'er ++, +*,?, t-e tri$l )o&rt %enie% priv$te respon%entAs motion for re)onsi%er$tion (Anne= 9N9, Rollo, p. +4;). In )-$llen1in1 t-ese Or%ers priv$te respon%ent file% $ petition for )ertior$ri .it- t-e respon%ent )o&rt on Septem'er ;*, +*,? (Anne= 9(9, Rollo, pp. +4@2+,+) reiter$tin1 $mon1 ot-er t-in1s t-e inv$li%ity of petitionerAs p$tents $n% pr$ye% t-$t t-e tri$l )o&rt 'e restr$ine% from enfor)in1 or )ontin&in1 to enfor)e t-e follo.in1: (+) Or%er %$te% Septem'er +@, +*,4, 1r$ntin1 t-e prelimin$ry in6&n)tion7 (;) 8rit of prelimin$ry in6&n)tion %$te% Septem'er +@, +*,47 $n%

(<) Or%er %$te% Septem'er ++, +*,4 %enyin1 petitionerAs motion petition for re)onsi%er$tion. On O)to'er +?, +*,?, t-e 8rit of #relimin$ry In6&n)tion .$s iss&e% 'y t-e respon%ent Co&rt of Appe$ls $s follo.s: NO8, THERE"ORE, yo&, respon%ents, $n%>or $ny person>persons $)tin1 on yo&r ste$%, $re -ere'y EN/OINE( to RESTRAIN from enfor)in1 or )ontin&in1 to enfor)e, t-e pro)ee%in1s )ompl$ine% of in t-e petition to .it: +) Or%er %$te% Septem'er +@, +*,4, 1r$ntin1 t-e prelimin$ry in6&n)tion7 ;) 8rit of #relimin$ry In6&n)tion %$te% Septem'er +@, +*,47 $n% Or%er %$te% Septem'er ++, +*,?, %enyin1 petitionerAs motion for re)onsi%er$tion, $ll iss&e% in )onne)tion .it- Civil C$se No. +**3@, UNTI! "URTHER OR(ERS "ROM THIS COURT. (Anne= 9#9, Rollo, p. +.,<) On "e'r&$ry +0, +*,0, respon%ent )o&rt prom&l1$te% $ %e)ision t-e %ispositive portion of .-i)- re$%s: 8HERE"ORE, fin%in1 no merit in t-e -erein petition, t-e s$me is -ere'y %ismisse% $n% t-e prelimin$ry in6&n)tion previo&sly iss&e% 'y t-is Co&rt is -ere'y set $si%e, .it- )osts. SO OR(ERE(. (CA (e)ision, Rollo, p. +@*). ln s$i% %e)ision respon%ent )o&rt st$te% t-$t in %isposin1 of t-e petition it t$)5le% only t-e iss&e of .-et-er t-e )o&rt a #$o $)te% .it- 1r$ve $'&se of %is)retion in iss&in1 t-e )-$llen1e% or%ers. It m$%e )le$r t-e C&estion of .-et-er t-e p$tents -$ve 'een infrin1e% or not .$s not %etermine% )onsi%erin1 t-e )o&rt a #$o -$s yet to %e)i%e t-e )$se on t-e merits (%bid." p. +@0). "eelin1 $11rieve%, priv$te respon%ent move% to re)onsi%er t-e $fore2mentione% (e)ision '$se% on t-e follo.in1 1ro&n%s: I THAT THIS HONORA !E COURT ERRE( IN NOT A##RECIATING THE EEISTENCE O" A "AIR FUESTION O" INGA!I(ITH O" #RIGATE RES#ON(ENTAS #ATENTS. II THAT THIS HONORA !E COURT ERRE( IN NOT RE/ECTING THE THEORH O" RES#ON(ENT /U(GE THAT HE HAS NO /URIS(ICTION TO INGA!I(ATE THE #ATENTS U#ON GROUN( O" !ACD O" NOGE!TH O" THE #RO(UCTS #ATENTE(. (Motion for Re)onsi%er$tion, Rollo, p. +*3). Revie.in1 on re)onsi%er$tion, respon%ent )o&rt 1$ve .ei1-t to priv$te respon%entAs $lle1$tion t-$t t-e l$tterAs pro%&)ts $re not i%enti)$l or even only s&'st$nti$lly i%enti)$l to t-e pro%&)ts )overe% 'y petitionerAs p$tents. S$i% )o&rt noti)e% t-$t )ontr$ry to t-e lo.er )o&rts position t-$t t-e )o&rt a #$o-$% no 6&ris%i)tion to %etermine t-e C&estion of inv$li%ity of t-e p$tents, Se)tion 4? $n% 40 of t-e #$tent !$. $llo. t-e )o&rt to m$5e $ fin%in1 on t-e v$li%ity or inv$li%ity of p$tents $n% in t-e event t-ere e=ists $ f$ir C&estion of its inv$li%ity, t-e sit&$tion )$lls for $ %eni$l of t-e .rit of prelimin$ry in6&n)tion pen%in1 t-e ev$l&$tion of t-e evi%en)e presente% (Rollo, pp. ;+@2;;0). T-&s, fin%in1 t-e lo.er )o&rtAs position to -$ve 'een oppose% to #$tent !$., respon%ent )o&rt )onsi%ere% it $ 1r$ve $'&se of %is)retion .-en t-e )o&rt a #$o iss&e% t-e .rit 'ein1 C&estione% .it-o&t loo5in1 into t-e %efenses $lle1e% 'y -erein priv$te respon%ent. "&rt-er, it )onsi%ere% t-e reme%y of $ppe$l, &n%er t-e )ir)&mst$n)es, to 'e in$%eC&$te. T-&s, on /&ly 0, +*,0, respon%ent )o&rt m$%e $ )omplete t&rn$'o&t from its ori1in$l %e)ision $n% prom&l1$te% $ Resol&tion, t-e %ispositive portion of .-i)- re$%s:

8HERE"ORE, o&r %e)ision is -ere'y set $si%e. T-e .rit of )ertior$ri is or%ere% iss&e%. A))or%in1ly, t-e )-$llen1e% or%ers, E=-i'it H $n% H2+ $n% t-e or%er %enyin1 t-e motion for re)onsi%er$tion (Anne= 9D9, #etition), $re -ere'y set $si%e. T-e .rit of prelimin$ry in6&n)tion previo&sly or%ere% 'y t-is Co&rt $n% or%ere% lifte% 'y t-e (e)ision no. 'ein1 set $si%e is -ere'y reinst$te% $n% m$%e perm$nent. 8it-o&t prono&n)ement $s to )osts. SO OR(ERE(. (CA Resol&tion, Rollo, p. ;;0). In $ Resol&tion %$te% Novem'er 4, +*,0, respon%ent )o&rt, not pers&$%e% 'y t-e 1ro&n%s em'o%ie% in t-e motion for re)onsi%er$tion file% 'y -erein petitioner (Anne= 9G 9, Rollo, p. ;;,), %enie% t-e s$me for l$)5 of merit, t-ere'y m$int$inin1 t-e s$me st$n% it too5 in its /&ly 0, +*,0 Resol&tion (Rollo, p. ;@+). Hen)e, t-is petition. On (e)em'er <, +*,0, .it-o&t 1ivin1 %&e )o&rse to t-e petition, t-is Co&rt reC&ire% respon%ent to file -er Comment (Rollo, p. ;*3) .-i)- .$s file% on (e)em'er +0, +*,0 (Rollo, pp. ;*+2<+0). T-ere$fter, petitioner file% -er Reply (Rollo, p. <;<) $n% on M$y <3, +*,,, t-e petition .$s 1iven %&e )o&rse (Rollo, p. <4?). #etitioner file% -er 'rief on /&ly +4, +*,, (Rollo, p. <?+) .-ile priv$te respon%ent file% -er 'rief on A&1&st ;?, +*,, (Rollo, p. <?*). T-ere$fter, petitioner -$vin1 f$ile% to file reply 'rief, t-e Co&rt resolve% to %e)l$re t-e )$se s&'mitte% for %e)ision on (e)em'er *, +*,, (Rollo, p. <?*). T-e $ssi1nment of errors r$ise% 'y t-e petitioner in t-is )$se (Rollo, pp. +?2+0) m$y 'e re%&)e% to t-ree m$in iss&es: (+) 8-et-er or not in $n $)tion for infrin1ement t-e Co&rt a #$o -$% 6&ris%i)tion to %etermine t-e inv$li%ity of t-e p$tents $t iss&e .-i)- inv$li%ity .$s still pen%in1 )onsi%er$tion in t-e p$tent offi)e. (;) 8-et-er or not t-e Co&rt a #$o )ommitte% 1r$ve $'&se of %is)retion in t-e iss&$n)e of $ .rit of prelimin$ry in6&n)tion. (<) 8-et-er or not )ertior$ri is t-e proper reme%y. T-e first iss&e -$s 'een l$i% to rest in $ n&m'er of )$ses .-ere t-e Co&rt r&le% t-$t 98-en $ p$tent is so&1-t to 'e enfor)e%, t-e C&estions of invention, novelty or prior &se, $n% e$)- of t-em, $re open to 6&%i)i$l e=$min$tion.9 (G$r1$s v. ".M. H$pti)o I Co. 43 #-il. +** J+*+*K7 G$r1$s v. C-&$, ?, #-il. ,*32,*+ J+*<<K7 "r$n5 $n% Go-n v. Dos&y$n$ ?* #-il. ;3, J+*<<K). Un%er t-e present #$tent !$., t-ere is even less re$son to %o&'t t-$t t-e tri$l )o&rt -$s 6&ris%i)tion to %e)l$re t-e p$tents in C&estion inv$li%. A p$tentee s-$ll -$ve t-e e=)l&sive ri1-t to m$5e, &se $n% sell t-e p$tente% $rti)le or pro%&)t $n% t-e m$5in1, &sin1, or sellin1 'y $ny person .it-o&t t-e $&t-oriB$tion of t-e p$tentee )onstit&tes infrin1ement of t-e p$tent (Se). <,, R.A. +0?). Any p$tentee .-ose ri1-ts -$ve 'een infrin1e% &pon m$y 'rin1 $n $)tion 'efore t-e proper C"I no. (RTC) $n% to se)&re $n in6&n)tion for t-e prote)tion of -is ri1-ts (Se). 4;, R.A. +0?). (efenses in $n $)tion for infrin1ement $re provi%e% for in Se)tion 4? of t-e s$me l$. .-i)- in f$)t .ere $v$ile% of 'y priv$te respon%ent in t-is )$se. T-en, $s )orre)tly st$te% 'y respon%ent Co&rt of Appe$ls, t-is )on)l&sion is reinfor)e% 'y Se). 40 of t-e s$me l$. .-i)- provi%es t-$t if t-e Co&rt s-$ll fin% t-e p$tent or $ny )l$im t-ereof inv$li%, t-e (ire)tor s-$ll on )ertifi)$tion of t-e fin$l 6&%1ment ... iss&e $n or%er )$n)ellin1 t-e p$tent or t-e )l$ims fo&n% inv$li% $n% s-$ll p&'lis- $ noti)e t-ereof in t-e Offi)i$l G$Bette.9 Upon s&)- )ertifi)$tion, it is ministeri$l on t-e p$rt of t-e p$tent offi)e to e=e)&te t-e 6&%1ment. (Rollo, pp. ;;+2;;;).

II. T-e '&r%en of proof to s&'st$nti$te $ )-$r1e of infrin1ement is .it- t-e pl$intiff. &t .-ere t-e pl$intiff intro%&)es t-e p$tent in evi%en)e, $n% t-e s$me is in %&e form, t-ere is )re$te% $ prima faciepres&mption of its )orre)tness $n% v$li%ity. T-e %e)ision of t-e Commissioner (no. (ire)tor) of #$tent in 1r$ntin1 t-e p$tent is pres&me% to 'e )orre)t. T-e '&r%en of 1oin1 for.$r% .it- t-e evi%en)e ('&r%en of evi%en)e) t-en s-ifts to t-e %efen%$nt to over)ome 'y )ompetent evi%en)e t-is le1$l pres&mption. T-e C&estion t-en in t-e inst$nt )$se is .-et-er or not t-e evi%en)e intro%&)e% 'y priv$te respon%ent -erein is s&ffi)ient to over)ome s$i% pres&mption. After $ )$ref&l revie. of t-e evi%en)e )onsistin1 of 04 e=-i'its $n% or$l testimonies of five .itnesses presente% 'y priv$te respon%ents 'efore t-e Co&rt of "irst Inst$n)e 'efore t-e Or%er of prelimin$ry in6&n)tion .$s iss&e% $s .ell $s t-ose presente% 'y t-e petitioner, respon%ent Co&rt of Appe$ls .$s s$tisfie% t-$t t-ere is $ prima facie s-o.in1 of $ f$ir C&estion of inv$li%ity of petitionerAs p$tents on t-e 1ro&n% of l$)5 of novelty. As pointe% o&t 'y s$i% $ppell$te )o&rt s$i% evi%en)e $ppe$re% not to -$ve 'een )onsi%ere% $t $ll 'y t-e )o&rt a #$o for $lle1e% l$)5 of 6&ris%i)tion, on t-e mist$5en notion t-$t s&)- C&estion in .it-in t-e e=)l&sive 6&ris%i)tion of t-e p$tent offi)e. It -$s 'een repe$te%ly -el% t-$t $n invention m&st possess t-e essenti$l elements of novelty , ori1in$lity $n% pre)e%en)e $n% for t-e p$tentee to 'e entitle% to prote)tion, t-e invention m&st 'e ne. to t-e .orl%. A))or%in1ly, $ sin1le inst$n)e of p&'li) &se of t-e invention 'y $ p$tentee for more t-$n t.o ye$rs (no. for more t-$n one ye$r only &n%er Se). * of t-e #$tent !$.) 'efore t-e %$te of -is $ppli)$tion for -is p$tent, .ill 'e f$t$l to, t-e v$li%ity of t-e p$tent .-en iss&e%. ("r$n5, et $l. v. Dos&y$m$ G$r1$s v. ".M. H$pti)o I Co. $n% G$r1$s v. C-&$, et $l., s$pra). T-e l$. provi%es: SEC. *. %nvention not considered new or patentable. L An invention s-$ll not 'e )onsi%ere% ne. or )$p$'le of 'ein1 p$tente% if it .$s 5no.n or &se% 'y ot-ers in t-e #-ilippines 'efore t-e invention t-ereof 'y t-e inventor n$me% in $n $ppli)$tion for p$tent for t-e invention7 or if it .$s p$tente% or %es)ri'e% in $ny printe% p&'li)$tion in t-e #-ilippines or $ny forei1n )o&ntry more t-$n one ye$r 'efore t-e $ppli)$tion for $ p$tent t-erefor7 or if it -$% 'een in p&'li) &se or on s$le in t-e #-ilippines for more t-$n one ye$r 'efore t-e $ppli)$tion for $ p$tent t-erefor7 or if it is t-e s&'6e)t m$tter of $ v$li%ity iss&e% p$tent in t-e #-ilippines 1r$nte% on $n $ppli)$tion file% 'efore t-e filin1 of t-e $ppli)$tion for p$tent t-erefor. T-&s, more spe)ifi)$lly, &n%er Ameri)$n !$. from .-i)- o&r #$tent !$. .$s %erive% (G$r1$s v. ".M. H$pti)o I Co. s$pra) it is 1ener$lly -el% t-$t in p$tent )$ses $ prelimin$ry in6&n)tion .ill not iss&e for p$tent infrin1ement &nless t-e v$li%ity of t-e p$tent is )le$r $n% 'eyon% C&estion. T-e iss&$n)e of letters p$tent, st$n%in1 $lone, is not s&ffi)ient to s&pport s&)- %r$sti) relief (@ (ellerAs 8$l5er on #$tents p. 430). In )$ses of infrin1ement of p$tent no prelimin$ry in6&n)tion .ill 'e 1r$nte% &nless t-e p$tent is v$li% $n% infrin1e% 'eyon% C&estion $n% t-e re)or% )on)l&sively proves t-e %efense is s-$m. (%bid., p. 43;) In t-e s$me m$nner, &n%er o&r 6&rispr&%en)e, $s $ 1ener$l r&le 'e)$&se of t-e in6&rio&s )onseC&en)es $ .rit of in6&n)tion m$y 'rin1, t-e ri1-t to t-e relief %em$n%e% m&st 'e )le$r $n% &nmist$5$'le. (S$n15i v. Comele), ;+ SCRA +<*;7 (e)em'er ;0, +*0,) $n% t-e %issol&tion of t-e .rit is proper .-ere $ppli)$nt -$s %o&'tf&l title to t-e %isp&te% property. (R$mos v. C.A., *? SCRA <?*). III. It .ill 'e note% t-$t t-e v$li%ity of petitionerAs p$tents is in C&estion for .$nt of novelty. #riv$te respon%ent )onten%s t-$t po.%er p&ffs I%enti)$l in $ppe$r$n)e .it- t-$t )overe% 'y petitionerAs p$tents e=iste% $n% .ere p&'li)ly 5no.n $n% &se% $s e$rly $s +*0< lon1 'efore petitioner .$s iss&e% t-e p$tents in C&estion. (!ist of E=-i'its, Rollo, pp. +*42+**).

As )orre)tly o'serve% 'y respon%ent Co&rt of Appe$ls, 9sin)e s&ffi)ient proofs -$ve 'een intro%&)e% in evi%en)e s-o.in1 $ f$ir C&estion of t-e inv$li%ity of t-e p$tents iss&e% for s&)- mo%els, it is '&t ri1-t t-$t t-e evi%en)e 'e loo5e% into, ev$l&$te% $n% %etermine% on t-e merits so t-$t t-e m$tter of .-et-er t-e p$tents iss&e% .ere in f$)t v$li% or not m$y 'e resolve%.9 (Rollo, pp. ;@02;@,). All t-ese not.it-st$n%in1, t-e tri$l )o&rt nonet-eless iss&e% t-e .rit of prelimin$ry in6&n)tion .-i)- &n%er t-e )ir)&mst$n)es s-o&l% 'e %enie%. "or f$il&re to %etermine first t-e v$li%ity of t-e p$tents 'efore $fores$i% iss&$n)e of t-e .rit, t-e tri$l )o&rt f$ile% to s$tisfy t-e t.o reC&isites ne)ess$ry if $n in6&n)tion is to iss&e, n$mely: t-e e=isten)e of t-e ri1-t to 'e prote)te% $n% t-e viol$tion of s$i% ri1-t. ( &$y$n C$ttle Co., In). v. F&intill$n, +;@ SCRA ;,0). Un%er t-e $'ove est$'lis-e% prin)iples, it $ppe$rs o'vio&s t-$t t-e tri$l )o&rt )ommitte% $ 1r$ve $'&se of %is)retion .-i)- m$5es )ertior$ri t-e $ppropri$te reme%y. As fo&n% 'y respon%ent Co&rt of Appe$ls, t-e in6&n)tive or%er of t-e tri$l )o&rt is of so 1ener$l $ tenor t-$t petitioner m$y 'e tot$lly '$rre% from t-e s$le of $ny 5in% of po.%er p&ff. Un%er t-e )ir)&mst$n)es, respon%ent $ppell$te )o&rt is of t-e vie. t-$t or%in$ry $ppe$l is o'vio&sly in$%eC&$te. (Rollo, p. ;@@). A p$r$llel .$s %r$.n from $ %e)ision of t-e S&preme Co&rt in t-e )$se of Sanc&e' v. Hon. Co$rt of Appeals" 0* SCRA <;@ J+*,0K .-ere t-e "irst (ivision of t-e S&preme Co&rt r&le% t-$t 9T-e prero1$tive .rit of )ertior$ri m$y 'e $pplie% for 'y proper petition not.it-st$n%in1 t-e e=isten)e of t-e re1&l$r reme%y of $n $ppe$l in %&e )$&se .-en $mon1 ot-er re$sons, t-e 'ro$%er interests of 6&sti)e so reC&ire or $n or%in$ry $ppe$l is not $n $%eC&$te reme%y.9 #riv$te respon%ent m$int$ins t-e position t-$t t-e resol&tions so&1-t to 'e $ppe$le% from -$% lon1 'e)ome fin$l $n% e=e)&tory for f$il&re of Hon. Reyn$l%o #. Honr$%o, t-e tri$l )o&rt 6&%1e, to $ppe$l 'y )ertior$ri from t-e resol&tions of respon%ent Co&rt of Appe$ls. (Rollo, pp. ;*+2;*;). S&)- )ontention is &nten$'le. T-ere is no %isp&te t-$t petitioner -$s se$son$'ly petitione%. On t-e ot-er -$n%, it is element$ry t-$t t-e tri$l 6&%1e is $ mere nominal part( $s )le$rly provi%e% in Se)tion ?, R&le 0? of t-e Revise% R&les of Co&rt .-ere it s-$ll 'e t-e %&ty of s&)- person or persons intereste% in s&st$inin1 t-e pro)ee%in1s in )o&rt, 9to $ppe$r $n% %efen%, 'ot- in -is or t-eir o.n 'e-$lf $n% in 'e-$lf of t-e )o&rt or 6&%1e $ffe)te% 'y t-e pro)ee%in1s.9 Rel$tive t-ereto 9t-e 6&%1e .-ose or%er is &n%er $tt$)5 is merely $ nomin$l p$rty7 .-erefore, $ 6&%1e in -is offi)i$l )$p$)ity s-o&l% not 'e m$%e to $ppe$r $s $ p$rty see5in1 revers$l of $ %e)ision t-$t is &nf$vor$'le to t-e $)tion t$5en 'y -im.9 (Hon. Al)$si% v. S$mson, +3; #-il. ,<?2,<07 T$ron$ v. S$yo, 0, SCRA ?3@, ?;47 !im Se v. Ar1el, ,3 SCRA <,@). As to petitionerAs )l$im of pres)ription, priv$te respon%entAs )ontention t-$t s&)- refers to t-e filin1 of petitions for )$n)ell$tion in t-e #$tent Offi)e &n%er Se). ;@ of t-e #$tent !$. $n% not to $ %efense $1$inst $n $)tion for infrin1ement &n%er Se). 4? t-ereof .-i)- m$y 'e r$ise% $nytime, is evi%ent &n%er $fores$i% l$.. #REMISES CONSI(ERE(, t-e $ss$ile% resol&tions of t-e Co&rt of Appe$ls $re -ere'y A""IRME(. SO OR(ERE(.

G.R. No. *,<4< Septem'er +<, +**< #ASCUA! GO(INES, petitioner, vs. THE HONORA !E COURT O" A##EA!S, S#ECIA! "OURTH (IGISION $n% SG2AGRO ENTER#RISES, INC.,respon%ents. T-ro&1- t-is petition for revie. in certiorari of $ %e)ision of t-e Co&rt of Appe$ls $ffirmin1 t-e %e)ision of t-e tri$l )o&rt, petitioner #$s)&$l Go%ines see5s to reverse t-e $%verse %e)ision of t-e Co&rt a #$o t-$t -e .$s li$'le for infrin1ement of p$tent $n% &nf$ir )ompetition. T-e %ispositive portion of t-e $ss$ile% %e)ision is -ere'y C&ote% to .it: 8HERE"ORE, .it- t-e elimin$tion of t-e $.$r% for $ttorneyAs fees, t-e 6&%1ment $ppe$le% from is -ere'y A""IRME(, .it- )osts $1$inst $ppell$nt. + T-e p$tent involve% in t-is )$se is !etters #$tent No. UM2;;<0 iss&e% 'y t-e #-ilippine #$tent Offi)e to one M$1%$len$ S. Gill$r&B on /&ly +?, +*,0. It )overs $ &tility mo%el for $ -$n% tr$)tor or po.er tiller, t-e m$in )omponents of .-i)- $re t-e follo.in1: 9(+) $ v$)&&m$ti) -o&se flo$t7 (;) $ -$rro. .it- $%6&st$'le oper$tin1 -$n%le7 (<) $ p$ir of p$%%y .-eels7 (4) $ prote)tive .$ter )overin1 for t-e en1ine m$in %rive7 (?) $ tr$nsmission )$se7 (0) $n oper$tin1 -$n%le7 (,) $n en1ine fo&n%$tion on t-e top mi%portion of t-e v$)&&m$ti) -o&sin1 flo$t to .-i)- t-e m$in en1ine %rive is %et$)-e%ly inst$lle%7 (@) $ front$l fr$me e=tension $'ove t-e C&$rter L )ir)&l$rly s-$pe% .$ter )overin1 -ol% (sic) in pl$)e t-e tr$nsmission )$se7 (*) $ G2'elt )onne)tion to t-e en1ine m$in %rive .it- tr$nsmission 1e$r t-ro&1- t-e p&lley, $n% (+3) $n i%ler p&lley inst$lle% on t-e en1ine fo&n%$tion.9 ; T-e p$tente% -$n% tr$)tor .or5s in t-e follo.in1 m$nner: 9t-e en1ine %rives t-e tr$nsmission 1e$r t-r& t-e G2'elt, $ %riven p&lley $n% $ tr$nsmission s-$ft. T-e en1ine %rives t-e tr$nsmission 1e$r 'y tensionin1 of t-e G2'elt .-i)- is )ontrolle% 'y t-e i%ler p&lley. T-e G2'elt %rives t-e p&lley $tt$)-e% to t-e tr$nsmission 1e$r .-i)- in t&rn %rives t-e s-$ft .-ere t-e p$%%y .-eels $re $tt$)-e%. T-e oper$tor -$n%les t-e -$n% tr$)tor t-ro&1$ -$n%le .-i)- is in)line% &p.$r%ly $n% s&pporte% 'y $ p$ir of s&'st$n%in1 pipes $n% reinfor)e% 'y $ U2s-$pe% G.I. pipe $t t-e G2s-$pe% en%.9 < T-e $'ove mentione% p$tent .$s $)C&ire% 'y SG2A1ro In%&stries Enterprises, In)., -erein priv$te respon%ent, from M$1%$len$ Gill$r&B, its )-$irm$n $n% presi%ent, 'y virt&e of $ (ee% of Assi1nment e=e)&te% 'y t-e l$tter in its f$vor. On O)to'er <+, +*,*, SG2A1ro In%&stries )$&se% t-e p&'li)$tion of t-e p$tent in &lletin To%$y, $ ne.sp$per of 1ener$l )ir)&l$tion. In $))or%$n)e .it- t-e p$tent, priv$te respon%ent m$n&f$)t&re% $n% sol% t-e p$tente% po.er tillers .it- t-e p$tent imprinte% on t-em. In +*,*, SG2A1ro In%&stries s&ffere% $ %e)line of more t-$n ?3M in s$les in its Mol$ve, N$m'o$n1$ %el S&r 'r$n)-. Upon investi1$tion, it %is)overe% t-$t po.er tillers simil$r to t-ose p$tente% 'y priv$te respon%ent .ere 'ein1 m$n&f$)t&re% $n% sol% 'y petitioner -erein. ConseC&ently, priv$te respon%ent notifie% #$s)&$l Go%ines $'o&t t-e e=istin1 p$tent $n% %em$n%e% t-$t t-e l$tter stop sellin1 $n% m$n&f$)t&rin1 simil$r po.er tillers. Upon petitionerAs f$il&re to )omply .it- t-e %em$n%, SG2A1ro In%&stries file% 'efore t-e Re1ion$l Tri$l Co&rt $ )ompl$int for infrin1ement of p$tent $n% &nf$ir )ompetition. After tri$l, t-e )o&rt -el% #$s)&$l Go%ines li$'le for infrin1ement of p$tent $n% &nf$ir )ompetition. T-e %ispositive portion of t-e %e)ision re$%s $s follo.s: 8HERE"ORE, premises )onsi%ere%, /U(GMENT is -ere'y ren%ere% in f$vor of t-e pl$intiff SG2A1ro In%&stries Enterprises, In)., $n% $1$inst %efen%$nt #$s)&$l Go%ines:

+. (e)l$rin1 t-e .rit of prelimin$ry in6&n)tion iss&e% 'y t-is Co&rt $1$inst %efen%$nt $s perm$nent7 ;. Or%erin1 %efen%$nt #$s)&$l Go%ines to p$y pl$intiff t-e s&m of "ifty T-o&s$n% #esos (#?3,333.33) $s %$m$1es to its '&siness rep&t$tion $n% 1oo%.ill, pl&s t-e f&rt-er s&m of Ei1-ty T-o&s$n% #esos (#@3,333.33) for &nre$liBe% profits %&rin1 t-e perio% %efen%$nt .$s m$n&f$)t&rin1 $n% sellin1 )opie% or imit$tion flo$tin1 po.er tiller7 <. Or%erin1 t-e %efen%$nt to p$y t-e pl$intiff, t-e f&rt-er s&m of Ei1-t T-o&s$n% #esos (#@,333.33) $s reim'&rsement of $ttorneyAs fees $n% ot-er e=penses of liti1$tion7 $n% to p$y t-e )osts of t-e s&it. SO OR(ERE(. 4 T-e %e)ision .$s $ffirme% 'y t-e $ppell$te )o&rt. T-ere$fter, t-is petition .$s file%. #etitioner m$int$ins t-e %efenses .-i)- -e r$ise% 'efore t-e tri$l $n% $ppell$te )o&rts, to .it: t-$t -e .$s not en1$1e% in t-e m$n&f$)t&re $n% s$le of t-e po.er tillers $s -e m$%e t-em only &pon t-e spe)i$l or%er of -is )&stomers .-o 1$ve t-eir o.n spe)ifi)$tions7 -en)e, -e )o&l% not 'e li$'le for infrin1ement of p$tent $n% &nf$ir )ompetition7 $n% t-$t t-ose m$%e 'y -im .ere %ifferent from t-ose 'ein1 m$n&f$)t&re% $n% sol% 'y priv$te respon%ent. 8e fin% no merit in -is $r1&ments. T-e C&estion of .-et-er petitioner .$s m$n&f$)t&rin1 $n% sellin1 po.er tillers is $ C&estion of f$)t 'etter $%%resse% to t-e lo.er )o&rts. In %ismissin1 t-e first $r1&ment of petitioner -erein, t-e Co&rt of Appe$ls C&ote% t-e fin%in1s of t-e )o&rt, to .it: It is t-e )ontention of %efen%$nt t-$t -e %i% not m$n&f$)t&re or m$5e imit$tions or )opies of pl$intiffAs t&rtle po.er tiller $s .-$t -e merely %i% .$s to f$'ri)$te -is flo$tin1 po.er tiller &pon spe)ifi)$tions $n% %esi1ns of t-ose .-o or%ere% t-em. Ho.ever, t-is )ontention $ppe$rs &nten$'le in t-e li1-t of t-e follo.in1 )ir)&mst$n)es: +) -e $%mits in -is Ans.er t-$t -e -$s 'een m$n&f$)t&rin1 po.er tillers or -$n% tr$)tors, sellin1 $n% %istri'&tin1 t-em lon1 'efore pl$intiff st$rte% sellin1 its t&rtle po.er tiller in N$m'o$n1$ %el S&r $n% Mis$mis O))i%ent$l, me$nin1 t-$t %efen%$nt is prin)ip$lly $ m$n&f$)t&rer of po.er tillers, not &pon spe)ifi)$tion $n% %esi1n of '&yers, '&t &pon -is o.n spe)ifi)$tion $n% %esi1n7 ;) it .o&l% 'e &n'eliev$'le t-$t %efen%$nt .o&l% f$'ri)$te po.er tillers simil$r to t-e t&rtle po.er tillers of pl$intiff &pon spe)ifi)$tions of '&yers .it-o&t reC&irin1 $ 6o' or%er .-ere t-e spe)ifi)$tion $n% %esi1ns of t-ose or%ere% $re spe)ifie%. No %o)&ment .$s (sic) ever 'een presente% s-o.in1 s&)- 6o' or%ers, $n% it is r$t-er &n&s&$l for %efen%$nt to m$n&f$)t&re somet-in1 .it-o&t t-e spe)ifi)$tion $n% %esi1ns, )onsi%erin1 t-$t -e is $n en1ineer 'y profession $n% proprietor of t-e OB$mis En1ineerin1 s-op. On t-e ot-er -$n%, it is $lso -i1-ly &n&s&$l for '&yers to or%er t-e f$'ri)$tion of $ po.er tiller or -$n% tr$)tor $n% $llo. %efen%$nt to m$n&f$)t&re t-em merely '$se% on t-eir ver'$l instr&)tions. T-is is )ontr$ry to t-e &s&$l '&siness $n% m$n&f$)t&rin1 pr$)ti)e. T-is is not only time )ons&min1, '&t )ostly 'e)$&se it involves $ tri$l $n% error met-o%, repe$t 6o's $n% m$teri$l .$st$1e. (efen%$nt 6&%i)i$lly $%mitte% t.o (;) &nits of t-e t&rtle po.er tiller sol% 'y -im to #oli)$rpio eron%o. ? Of 1ener$l $))ept$n)e is t-e r&le im'e%%e% in o&r 6&rispr&%en)e t-$t 9. . . t-e 6&ris%i)tion of t-e S&preme Co&rt in )$ses 'ro&1-t to it from t-e Co&rt of Appe$ls in $ petition for certiorari &n%er R&le 4? of t-e R&les of Co&rt is limite% to t-e revie. of errors of l$., $n% t-$t s$i% $ppell$te )o&rtAs fin%in1s of f$)t $re )on)l&sive &pon t-is Co&rt.9 0

T-e f$)t t-$t petitioner -erein m$n&f$)t&re% $n% sol% po.er tillers .it-o&t p$tenteeAs $&t-ority -$s 'een est$'lis-e% 'y t-e )o&rts %espite petitionerAs )l$ims to t-e )ontr$ry. T-e C&estion no. $rises: (i% petitionerAs pro%&)t infrin1e &pon t-e p$tent of priv$te respon%entO Tests -$ve 'een est$'lis-e% to %etermine infrin1ement. T-ese $re ($) liter$l infrin1ement7 $n% (') t-e %o)trine of eC&iv$lents. , In &sin1 liter$l infrin1ement $s $ test, 9. . . resort m&st 'e -$%, in t-e first inst$n)e, to t-e .or%s of t-e )l$im. If $))&se% m$tter )le$rly f$lls .it-in t-e )l$im, infrin1ement is m$%e o&t $n% t-$t is t-e en% of it.9 @ To %etermine .-et-er t-e p$rti)&l$r item f$lls .it-in t-e liter$l me$nin1 of t-e p$tent )l$ims, t-e )o&rt m&st 6&=t$pose t-e )l$ims of t-e p$tent $n% t-e $))&se% pro%&)t .it-in t-e over$ll )onte=t of t-e )l$ims $n% spe)ifi)$tions, to %etermine .-et-er t-ere is e=$)t i%entity of $ll m$teri$l elements. * T-e tri$l )o&rt m$%e t-e follo.in1 o'serv$tion: S$mples of t-e %efen%$ntAs flo$tin1 po.er tiller -$ve 'een pro%&)e% $n% inspe)te% 'y t-e )o&rt $n% )omp$re% .it- t-$t of t-e t&rtle po.er tiller of t-e pl$intiff (see E=-i'its H to H2;@). In $ppe$r$n)e $n% form, 'ot- t-e flo$tin1 po.er tillers of t-e %efen%$nt $n% t-e t&rtle po.er tiller of t-e pl$intiff $re virt&$lly t-e s$me. (efen%$nt $%mitte% to t-e Co&rt t-$t t.o (;) of t-e po.er inspe)te% on M$r)- +;, +*@4, .ere m$n&f$)t&re% $n% sol% 'y -im (see TSN, M$r)- +;, +*@4, p. ,). T-e t-ree po.er tillers .ere pl$)e% $lon1si%e .it- e$)ot-er. At t-e )enter .$s t-e t&rtle po.er tiller of pl$intiff, $n% on 'ot- si%es t-ereof .ere t-e flo$tin1 po.er tillers of %efen%$nt (E=-i'its H to H2;). 8itness Ro%ri1o too5 p-oto1r$p-s of t-e s$me po.er tillers (front, si%e, top $n% '$)5 vie.s for p&rposes of )omp$rison (see E=-i'its H24 to H2;@). Gie.e% from $ny perspe)tive or $n1le, t-e po.er tiller of t-e %efen%$nt is i%enti)$l $n% simil$r to t-$t of t-e t&rtle po.er tiller of pl$intiff in form, )onfi1&r$tion, %esi1n $n% $ppe$r$n)e. T-e p$rts or )omponents t-ereof $re virt&$lly t-e s$me. ot-$ve t-e )ir)&l$rly2s-$pe% v$)&&m$ti) -o&sin1 flo$t, $ p$%%y in front, $ prote)tive .$ter )overin1, $ tr$nsmission 'o= -o&sin1 t-e tr$nsmission 1e$rs, $ -$n%le .-i)- is G2s-$pe% $n% in)line% &p.$r%ly, $tt$)-e% to t-e si%e of t-e v$)&&m$ti) -o&sin1 flo$t $n% s&pporte% 'y t-e &pst$n%in1 G.I. pipes $n% $n en1ine '$se $t t-e top mi%portion of t-e v$)&&m$ti) -o&sin1 flo$t to .-i)- t-e en1ine %rive m$y 'e $tt$)-e%. In oper$tion, t-e flo$tin1 po.er tiller of t-e %efen%$nt oper$tes $lso in simil$r m$nner $s t-e t&rtle po.er tiller of pl$intiff. T-is .$s $%mitte% 'y t-e %efen%$nt -imself in )o&rt t-$t t-ey $re oper$tin1 on t-e s$me prin)iples. (TSN, A&1&st +*, +*@,, p. +<) +3 Moreover, it is $lso o'serve% t-$t petitioner $lso )$lle% -is po.er tiller $s $ flo$tin1 po.er tiller. T-e p$tent iss&e% 'y t-e #$tent Offi)e referre% to $ 9f$rm implement '&t more p$rti)&l$rly to $ t&rtle -$n% tr$)tor -$vin1 $ v$)&&m$ti) -o&sin1 flo$t on .-i)- t-e en1ine %rive is -el% in pl$)e, t-e oper$tin1 -$n%le, t-e -$rro. -o&sin1 .it- its oper$tin1 -$n%le $n% t-e p$%%y .-eel prote)tive )overin1.9 ++ It $ppe$rs from t-e fore1oin1 o'serv$tion of t-e tri$l )o&rt t-$t t-ese )l$ims of t-e p$tent $n% t-e fe$t&res of t-e p$tente% &tility mo%el .ere )opie% 'y petitioner. 8e $re )ompelle% to $rrive $t no ot-er )on)l&sion '&t t-$t t-ere .$s infrin1ement. #etitionerAs $r1&ment t-$t -is po.er tillers .ere %ifferent from priv$te respon%entAs is t-$t of $ %ro.nin1 m$n )l&t)-in1 $t str$.s. Re)o1niBin1 t-$t t-e lo1i)$l f$ll'$)5 position of one in t-e pl$)e of %efen%$nt is to $ver t-$t -is pro%&)t is %ifferent from t-e p$tente% one, )o&rts -$ve $%opte% t-e %o)trine of eC&iv$lents .-i)- re)o1niBes t-$t minor mo%ifi)$tions in $ p$tente% invention $re s&ffi)ient to p&t t-e item 'eyon% t-e s)ope of liter$l infrin1ement. +; T-&s, $))or%in1 to t-is %o)trine, 9($)n infrin1ement $lso o))&rs .-en $ %evi)e $ppropri$tes $ prior invention 'y in)orpor$tin1 its innov$tive )on)ept $n%, $l'eit .it- some mo%ifi)$tion $n% )-$n1e, performs s&'st$nti$lly t-e s$me f&n)tion in s&'st$nti$lly t-e s$me .$y to $)-ieve s&'st$nti$lly t-e s$me res&lt.9 +< T-e re$son for t-e %o)trine of eC&iv$lents is t-$t to permit t-e imit$tion of $ p$tente% invention .-i)- %oes not )opy $ny liter$l %et$il .o&l% 'e to )onvert t-e prote)tion of t-e p$tent 1r$nt into $ -ollo. $n% &seless t-in1. S&)- imit$tion .o&l% le$ve room for L in%ee% en)o&r$1e L t-e &ns)r&p&lo&s

)opyist to m$5e &nimport$nt $n% ins&'st$nti$l )-$n1es $n% s&'stit&tions in t-e p$tent .-i)-, t-o&1- $%%in1 not-in1, .o&l% 'e eno&1- to t$5e t-e )opie% m$tter o&tsi%e t-e )l$im, $n% -en)e o&tsi%e t-e re$)- of t-e l$.. +4 In t-is )$se, t-e tri$l )o&rt o'serve%: (efen%$ntAs .itness E%&$r%o C$Pete, employe% for ++ ye$rs $s .el%er of t-e OB$mis En1ineerin1, $n% t-erefore $)t&$lly involve% in t-e m$5in1 of t-e flo$tin1 po.er tillers of %efen%$nt trie% to e=pl$in t-e %ifferen)e 'et.een t-e flo$tin1 po.er tillers m$%e 'y t-e %efen%$nt. &t $ )$ref&l e=$min$tion 'et.een t-e t.o po.er tillers .ill s-o. t-$t t-ey .ill oper$te on t-e s$me f&n%$ment$l prin)iples. An%, $))or%in1 to est$'lis- 6&rispr&%en)e, in infrin1ement of p$tent, simil$rities or %ifferen)es $re to 'e %etermine%, not 'y t-e n$mes of t-in1s, '&t in t-e li1-t of .-$t elements %o, $n% s&'st$nti$l, r$t-er t-$n te)-ni)$l, i%entity in t-e test. More spe)ifi)$lly, it is ne)ess$ry $n% s&ffi)ient to )onstit&te eC&iv$len)y t-$t t-e s$me f&n)tion )$n 'e performe% in s&'st$nti$lly t-e s$me .$y or m$nner, or 'y t-e s$me or s&'st$nti$lly t-e s$me, prin)iple or mo%e of oper$tion7 '&t .-ere t-ese tests $re s$tisfie%, mere %ifferen)es of form or n$me $re imm$teri$l. . . . +? It $lso st$te%: To est$'lis- $n infrin1ement, it is not essenti$l to s-o. t-$t t-e %efen%$nt $%opte% t-e %evi)e or pro)ess in every p$rti)&l$r7 #roof of $n $%option of t-e s&'st$n)e of t-e t-in1 .ill 'e s&ffi)ient. 9In one sense,9 s$i% /&sti)e ro.n, 9it m$y 'e s$i% t-$t no %evi)e )$n 'e $%6&%1e% $n infrin1ement t-$t %oes not s&'st$nti$lly )orrespon% .it- t-e p$tent. &t $not-er )onstr&)tion, .-i)- .o&l% limit t-ese .or%s to e=$)t me)-$nism %es)ri'e% in t-e p$tent, .o&l% 'e so o'vio&sly &n6&st t-$t no )o&rt )o&l% 'e e=pe)te% to $%opt it. . . . T-e l$. .ill prote)t $ p$tentee $1$inst imit$tion of -is p$tent 'y ot-er forms $n% proportions. If t.o %evi)es %o t-e s$me .or5 in s&'st$nti$lly t-e s$me .$y, $n% $))omplis- s&'st$nti$lly t-e s$me res&lt, t-ey $re t-e s$me, even t-o&1- t-ey %iffer in n$me, form, or s-$pe. +0 8e prono&n)e petitioner li$'le for infrin1ement in $))or%$n)e .it- Se)tion <, of Rep&'li) A)t No. +0?, $s $men%e%, provi%in1, inter alia: Se). <,. i)&t of Patentees. L A p$tentee s-$ll -$ve t-e e=)l&sive ri1-t to m$5e, &se $n% sell t-e p$tente% m$)-ine, $rti)le or pro%&)t, $n% to &se t-e p$tente% pro)ess for t-e p&rpose of in%&stry or )ommer)e, t-ro&1-o&t t-e territory of t-e #-ilippines for t-e terms of t-e p$tent7 and s$c& ma*in)" $sin)" or sellin) b( an( person wit&o$t t&e a$t&ori'ation of t&e Patentee constit$tes infrin)ement of t&e patent. (Emp-$sis o&rs) As f$r $s t-e iss&e re1$r%in1 &nf$ir )ompetition is )on)erne%, s&ffi)e it to s$y t-$t Rep&'li) A)t No. +00, $s $men%e%, provi%es, inter alia: Se). ;*. Unfair competition" ri)&ts and remedies. L . . . === === === In p$rti)&l$r, $n% .it-o&t in $ny .$y limitin1 t-e s)ope of &nf$ir )ompetition, t-e follo.in1 s-$ll 'e %eeme% 1&ilty of &nf$ir )ompetition: ($) Any person, .-o in sellin1 -is 1oo%s s-$ll 1ive t-em t-e 1ener$l $ppe$r$n)e of 1oo%s of $not-er m$n&f$)t&rer or %e$ler, eit-er $s to t-e 1oo%s t-emselves or in t-e .r$ppin1 of t-e p$)5$1es in .-i)- t-ey $re )ont$ine%, or t-e %evi)es or .or%s t-ereon, or in $ny ot-er fe$t&re of t-eir $ppe$r$n)e, .-i)- .o&l% 'e li5ely to infl&en)e p&r)-$sers t-$t t-e 1oo%s offere% $re t-ose of $ m$n&f$)t&rer or %e$ler ot-er t-$n t-e $)t&$l m$n&f$)t&rer or %e$ler, or .-o ot-er.ise )lot-es t-e 1oo%s .it- s&)- $ppe$r$n)e $s s-$ll %e)eive t-e p&'li) $n% %efr$&% $not-er of -is le1itim$te tr$%e. . . . === === ===Consi%erin1 t-e fore1oin1, .e fin% no reversi'le error in t-e %e)ision of t-e Co&rt of Appe$ls $ffirmin1 .itmo%ifi)$tion t-e %e)ision of t-e tri$l )o&rt.8HERE"ORE, premises )onsi%ere%, t-e %e)ision of t-e Co&rt of Appe$ls is -ere'y A""IRME( $n% t-is petition (ENIE( for l$)5 of merit.+idin" ,elo and -it$)" JJ." conc$r..eliciano" J." is on leave.

RO ERTO !. (E! ROSARIO, petitioner" vs. COURT O" A##EA!S AN( /ANITO COR#ORATION, respondents. Ro'erto %el Ros$rio petitions t-is Co&rt to revie. t-e %e)ision of t-e Co&rt of Appe$ls .-i)- set $si%e t-e or%er of t-e Re1ion$l Tri$l Co&rt of M$5$ti 1r$ntin1 $ .rit of prelimin$ry in6&n)tion in -is f$vor. T-e $nte)e%ents: On +@ /$n&$ry +**< petitioner file% $ )ompl$int for p$tent infrin1ement $1$inst priv$te respon%ent /$nito Corpor$tion.J;K Ro'erto !. %el Ros$rio $lle1e% t-$t -e .$s $ p$tentee of $n $&%io eC&ipment $n% improve% $&%io eC&ipment )ommonly 5no.n $s t-e sin12$lon1 system or *arao*e &n%er !etters #$tent No. UM2?;0* %$te% ; /&ne +*@< $s .ell $s !etters #$tent No. UM20;<, %$te% +4 Novem'er +*@0 iss&e% 'y t-e (ire)tor of #$tents. T-e effe)tivity of 'ot- !etters #$tents .$s for five (?) ye$rs $n% .$s e=ten%e% for $not-er five (?) ye$rs st$rtin1 ; /&ne +*@@ $n% +4 Novem'er +**+, respe)tively. He %es)ri'e% -is sin12$lon1 system $s $ -$n%y m&lti2 p&rpose )omp$)t m$)-ine .-i)- in)orpor$tes $n $mplifier spe$5er, one or t.o t$pe me)-$nisms, option$l t&ner or r$%io $n% mi)rop-one mi=er .it- fe$t&res to en-$n)e oneQs voi)e, s&)- $s t-e e)-o or rever' to stim&l$te $n oper$ -$ll or $ st&%io so&n%, .it- t-e .-ole system en)lose% in one )$'inet )$sin1. In t-e e$rly p$rt of +**3 petitioner le$rne% t-$t priv$te respon%ent .$s m$n&f$)t&rin1 $ sin12$lon1 system 'e$rin1 t-e tr$%em$r5 mi(ata or mi(ata *arao*e s&'st$nti$lly simil$r if not i%enti)$l to t-e sin12$lon1 system )overe% 'y t-e p$tents iss&e% in -is f$vor. T-&s -e so&1-t from t-e tri$l )o&rt t-e iss&$n)e of $ .rit of prelimin$ry in6&n)tion to en6oin priv$te respon%ent, its offi)ers $n% every'o%y else.-ere $)tin1 on its 'e-$lf, from &sin1, sellin1 $n% $%vertisin1 t-e mi(ata or mi(ata *arao*e 'r$n%, t-e in6&n)tion to 'e m$%e perm$nent $fter tri$l, $n% pr$yin1 for %$m$1es, $ttorneyQs fees $n% )osts of s&it. On / "e'r&$ry +**< t-e tri$l )o&rt tempor$rily restr$ine% priv$te respon%ent from m$n&f$)t&rin1, &sin1 $n%>or sellin1 $n% $%vertisin1 t-e mi(ata sin12$lon1 system or $ny sin12$lon1 system s&'st$nti$lly i%enti)$l to t-e sin12$lon1 system p$tente% 'y petitioner &ntil f&rt-er or%ers. On ;4 "e'r&$ry +**< t-e tri$l )o&rt iss&e% $ .rit of prelimin$ry in6&n)tion &pon $ 'on% on t-e '$sis of its fin%in1 t-$t petitioner .$s $ -ol%er of $ &tility mo%el p$tent for $ sin12$lon1 system $n% t-$t .it-o&t -is $pprov$l $n% )onsent priv$te respon%ent .$s $%mitte%ly m$n&f$)t&rin1 $n% sellin1 its o.n sin12$lon1 system &n%er t-e 'r$n% n$me mi(ata .-i)- .$s s&'st$nti$lly simil$r to t-e p$tente% &tility mo%elJ<K of petitioner. #riv$te respon%ent $ss$ile% t-e or%er of ;4 "e'r&$ry +**< %ire)tin1 t-e iss&$n)e of t-e .rit 'y .$y of $ petition for )ertior$ri .it- pr$yer for t-e iss&$n)e of $ .rit of prelimin$ry in6&n)tion $n% $ tempor$ry restr$inin1 or%er 'efore respon%ent Co&rt of Appe$ls. On +? Novem'er +**< respon%ent $ppell$te )o&rt 1r$nte% t-e .rit $n% set $si%e t-e C&estione% or%er of t-e tri$l )o&rt. It e=presse% t-e vie. t-$t t-ere .$s no infrin1ement of t-e p$tents of petitioner 'y t-e f$)t $lone t-$t priv$te respon%ent -$% m$n&f$)t&re% t-e mi(ata *arao*e or $&%io system, $n% t-$t t-e 5$r$o5e system .$s $ &nivers$l pro%&)t m$n&f$)t&re%, $%vertise% $n% m$r5ete% in most )o&ntries of t-e .orl% lon1 'efore t-e p$tents .ere iss&e% to petitioner. T-e motion to re)onsi%er t-e 1r$nt of t-e .rit .$s %enie%7J4K-en)e, t-e inst$nt petition for revie.. T-is petition $lle1es t-$t: ($) it .$s improper for t-e Co&rt of Appe$ls to )onsi%er C&estions of f$)t in $ )ertior$ri pro)ee%in17 (') t-e Co&rt of Appe$ls erre% in t$5in1 6&%i)i$l noti)e of priv$te respon%entQs self2servin1 present$tion of f$)ts7 ()) t-e Co&rt of Appe$ls erre% in %isre1$r%in1 t-e fin%in1s of f$)t of t-e tri$l )o&rt7 $n%, (%) t-ere .$s no '$sis for t-e Co&rt of Appe$ls to 1r$nt $ .rit of prelimin$ry in6&n)tion in f$vor of priv$te respon%ent. J?K #etitioner $r1&es t-$t in $ )ertior$ri pro)ee%in1, C&estions of f$)t $re not 1ener$lly permitte% t-e inC&iry 'ein1 limite% essenti$lly to .-et-er t-e tri'&n$l -$s $)te% .it-o&t or in e=)ess of 6&ris%i)tion or .it- 1r$ve $'&se of %is)retion7 t-$t respon%ent )o&rt s-o&l% not -$ve %ist&r'e% '&t respe)te% inste$% t-e f$)t&$l fin%in1s of t-e tri$l )o&rt7 t-$t t-e mov$nt -$s $ )le$r le1$l ri1-t to 'e prote)te% $n% t-$t t-ere is $ viol$tion of s&)- ri1-t 'y priv$te respon%ent. T-&s, petitioner -erein )l$ims, -e -$s s$tisfie% t-e le1$l reC&isites to 6&stify t-e or%er of t-e tri$l )o&rt %ire)tin1 t-e iss&$n)e of
J+K

t-e .rit of in6&n)tion. On t-e ot-er -$n%, in t-e $'sen)e of $ p$tent to 6&stify t-e m$n&f$)t&re $n% s$le 'y priv$te respon%ent of sin12$lon1 systems, it is not entitle% to t-e in6&n)tive relief 1r$nte% 'y respon%ent $ppell$te )o&rt. T-e )r&= of t-e )ontroversy 'efore &s -in1es on .-et-er respon%ent Co&rt of Appe$ls erre% in fin%in1 t-e tri$l )o&rt to -$ve )ommitte% 1r$ve $'&se of %is)retion in en6oinin1 priv$te respon%ent from m$n&f$)t&rin1, sellin1 $n% $%vertisin1 t-e mi(ata *arao*e 'r$n% sin12$lon1 system for 'ein1 s&'st$nti$lly simil$r if not i%enti)$l to t-e $&%io eC&ipment )overe% 'y letters p$tent iss&e% to petitioner. In6&n)tion is $ preserv$tive reme%y for t-e prote)tion of s&'st$ntive ri1-ts or interests. It is not $ )$&se of $)tion in itself '&t merely $ provision$l reme%y, $n $%6&n)t to $ m$in s&it. T-e )ontrollin1 re$son for t-e e=isten)e of t-e 6&%i)i$l po.er to iss&e t-e .rit is t-$t t-e )o&rt m$y t-ere'y prevent $ t-re$tene% or )ontin&o&s irreme%i$'le in6&ry to some of t-e p$rties 'efore t-eir )l$ims )$n 'e t-oro&1-ly investi1$te% $n% $%vise%ly $%6&%i)$te%. It is to 'e resorte% to only .-en t-ere is $ pressin1 ne)essity to $voi% in6&rio&s )onseC&en)es .-i)- )$nnot 'e reme%ie% &n%er $ny st$n%$r% of )ompens$tion. T-e $ppli)$tion of t-e .rit rests &pon $n $lle1e% e=isten)e of $n emer1en)y or of $ spe)i$l re$son for s&)- $n or%er 'efore t-e )$se )$n 'e re1&l$rly -e$r%, $n% t-e essenti$l )on%itions for 1r$ntin1 s&)- tempor$ry in6&n)tive relief $re t-$t t-e )ompl$int $lle1es f$)ts .-i)- $ppe$r to 'e s&ffi)ient to )onstit&te $ )$&se of $)tion for in6&n)tion $n% t-$t on t-e entire s-o.in1 from 'ot- si%es, it $ppe$rs, in vie. of $ll t-e )ir)&mst$n)es, t-$t t-e in6&n)tion is re$son$'ly ne)ess$ry to prote)t t-e le1$l ri1-ts of pl$intiff pen%in1 t-e liti1$tion.J0K A prelimin$ry in6&n)tion m$y 'e 1r$nte% $t $ny time $fter t-e )ommen)ement of t-e $)tion $n% 'efore 6&%1ment .-en it is est$'lis-e% t-$t t-e %efen%$nt is %oin1, t-re$tens, or is $'o&t to %o, or is pro)&rin1 or s&fferin1 to 'e %one, some $)t pro'$'ly in viol$tion of t-e pl$intiffQs ri1-ts. T-&s, t-ere $re only t.o reC&isites to 'e s$tisfie% if $n in6&n)tion is to iss&e, n$mely, t-e e=isten)e of t-e ri1-t to 'e prote)te%, $n% t-$t t-e f$)ts $1$inst .-i)- t-e in6&n)tion is to 'e %ire)te% $re viol$tive of s$i% ri1-t.J,K "or t-e .rit to iss&e t-e interest of petitioner in t-e )ontroversy or t-e ri1-t -e see5s to 'e prote)te% m&st 'e $ present ri1-t, $ le1$l ri1-t .-i)- m&st 'e s-o.n to 'e )le$r $n% positive. In t-is re1$r% Se). // of R.A. +0? $s $men%e%, 5no.n $s 0&e Patent Law" provi%es R Se). ??. (esi1n p$tents $n% p$tents for &tility models. 2 ($) Any ne., ori1in$l, $n% orn$ment$l %esi1n for $n $rti)le of m$n&f$)t&re $n% (') ne. mo%el or implements or tools or of $ny In%&stri$l pro%&)t or of p$rt of t-e s$me, .-i)- %oes not possess t-e C&$lity of invention '&t .-i)- is of pr$)ti)$l &tility 'y re$son of its form, )onfi1&r$tion, )onstr&)tion or )omposition, m$y 'e prote)te% 'y t-e $&t-or t-ereof, t-e former 'y $ p$tent for $ %esi1n $n% t-e l$tter 'y $ p$tent for $ &tility mo%el, in t-e s$me m$nner $n% s&'6e)t to t-e s$me provisions $n% reC&irements $s rel$te to p$tents for inventions insof$r $s t-ey $re $ppli)$'le, e=)ept $s ot-er.ise -erein provi%e = = = A%mitte%ly, petitioner is $ -ol%er of !etters #$tent No. UM2?0;* %$te% ; /&ne +*@? iss&e% for $ term of five 1/2 ye$rs from t-e 1r$nt of $ Utility Mo%el -erein %es)ri'e% R T-e )onstr&)tion of $n $&%io eC&ipment )omprisin1 $ s&'st$nti$lly )&'i)$l )$sin1 -$vin1 $ .in%o. $t its re$r $n% &pper )orner fitte% .it- $ sli1-tly in)line% )ontrol p$nel, s$i% )&'i)$l ()$sin1) -$vin1 $ verti)$l p$rtition .$ll t-erein %efinin1 $ re$r )omp$rtment $n% $ front )omp$rtment, $n% s$i% front )omp$rtment servin1 $s $ spe$5er '$ffle7 $ tr$nsistoriBe% $mplifier )ir)&it -$vin1 $n e)-o se)tion $n% .rit-e% in $t le$st t-e printe% )ir)&it 'o$r%s pl$)e% insi%e s$i% re$r )omp$rtment of s$i% )$sin1 $n% $tt$)-e% to s$i% verti)$l p$rtition .$ll, s$i% tr$nsistoriBe% $mplifier )ir)&it )$p$'le of 'ein1 oper$te% from o&tsi%e, t-ro&1- v$rio&s )ontrols mo&nte% on s$i% )ontrol p$nel of s&)- )$sin17 $ lo&% spe$5er fitte% insi%e s$i% front )omp$rtment of s$i% )$sin1 $n% )onne)te% to t-e o&tp&t of t-e m$in $&%io $mplifier se)tion of s$i% tr$nsistoriBe% $mplifier )ir)&it $n% $ t$pe pl$yer mo&nte% on t-e top .$ll of s$i% )$sin1 $n% s$i% t$pe pl$yer 'ein1 )onne)te% in )onvention$l m$nner to s$i% tr$nsistoriBe% $mplifier )ir)&it.J@K

A1$in, on +4 Novem'er +*@0 petitioner .$s 1r$nte% !etters #$tent No. UM20;<, for $ term of five (?) ye$rs from t-e 1r$nt of $ Utility Mo%el %es)ri'e% $s R In $n $&%io eC&ipment )onsistin1 of $ first )&'i)$l )$sin1 -$vin1 $n openin1 $t its re$r $n% &pper re$r portion $n% $ p$rtition t-erein formin1 $ re$r )omp$rtment $n% $ front )omp$rtment servin1 $s $ lo&% spe$5er '$ffle, $ )ontrol p$nel forme% 'y verti)$l $n% -oriBont$l se)tions, $ tr$nsistoriBe% $mplifier )ir)&it .ire% in $t le$st t.o printe% )ir)&it 'o$r%s $tt$)-e% $t t-e '$)5 of s$i% )ontrol p$nel, $ first lo&% spe$5er fitte% insi%e s$i% first )omp$rtment of s&)- first )$sin1 $n% )onne)te% to t-e o&tp&t of s$i% tr$nsistoriBe% $mplifier )ir)&it7 t-e improvement .-erein s$i% )ontrol p$nel 'ein1 remov$'ly fitte% to s$i% first )&'i)$l )$sin1 $n% f&rt-er )omprises $ set of t$pe re)or%er $n% t$pe pl$yer mo&nte% on t-e verti)$l se)tion of s$i% )ontrol p$nel $n% s$i% re)or%er $n% pl$yer $re li5e.ise )onne)te% to s$i% tr$nsistoriBe% $mplifier )ir)&it7 $ se)on% )&'i)$l )$sin1 -$vin1 $n openin1 $t its re$r, s$i% se)on% )&'i)$l )$sin1 -$vin1 ('ein1 O) provi%e% .it$ verti)$l p$rtition t-erein %efinin1 $ re$r )omp$rtment $n% $ front )omp$rtment, s$i% re$r )omp$rtment 'ein1 provi%e% .it- $ %oor $n% en)losin1 t-erein $ set of t$pe r$)5s $n% s$i% front )omp$rtment servin1 $s lo&% spe$5er '$ffle, s$i% se)on% )&'i)$l )$sin1 'ein1 $%$pte% to s$i% first )&'i)$l )$sin1 so t-$t s$i% first $n% se)on% )$sin1s $re se)&re% to1et-er in )omp$)t $n% port$'le form7 $n% $ se)on% lo&% spe$5er fitte% insi%e s$i% front )omp$rtment of s$i% )$sin1 $n% )onne)te% to t-e o&tp&t of s$i% $mplifier )ir)&it.J*K T-e terms of 'ot- !etters #$tents .ere e=ten%e% for $not-er five (?) ye$rs e$)-, t-e first 'e1innin1 ; /&ne +*@@ $n% t-e se)on%, +4 Novem'er +**+. T-e #$tent !$. e=pressly $)5no.le%1es t-$t $ny ne. mo%el of implements or tools of $ny in%&stri$l pro%&)t even if not possesse% of t-e C&$lity of invention '&t .-i)- is of pr$)ti)$l &tility is entitle% to $ p$tent for &tility mo%el. J+3K Here, t-ere is no %isp&te t-$t t-e letters p$tent iss&e% to petitioner $re for &tility mo%els of $&%io eC&ipment. In iss&in1, reiss&in1 or .it--ol%in1 p$tents $n% e=tensions t-ereof, t-e (ire)tor of #$tents %etermines .-et-er t-e p$tent is ne. $n% .-et-er t-e m$)-ine or %evi)e is t-e proper s&'6e)t of p$tent. In p$ssin1 on $n $ppli)$tion, t-e (ire)tor %e)i%es not only C&estions of l$. '&t $lso C&estions of f$)t, i.e. .-et-er t-ere -$s 'een $ prior p&'li) &se or s$le of t-e $rti)le so&1-t to 'e p$tente%. J++K 8-ere petitioner intro%&)es t-e p$tent in evi%en)e, if it is in %&e form, it $ffor%s $ prima facie pres&mption of its )orre)tness $n% v$li%ity. T-e %e)ision of t-e (ire)tor of #$tents in 1r$ntin1 t-e p$tent is $l.$ys pres&me% to 'e )orre)t, $n% t-e '&r%en t-en s-ifts to respon%ent to over)ome t-is pres&mption 'y )ompetent evi%en)e.J+;K Un%er Se). ?? of T-e #$tent !$. $ &tility mo%el s-$ll not 'e )onsi%ere% Sne.T if 'efore t-e $ppli)$tion for $ p$tent it -$s 'een p&'li)ly 5no.n or p&'li)ly &se% in t-is )o&ntry or -$s 'een %es)ri'e% in $ printe% p&'li)$tion or p&'li)$tions )ir)&l$te% .it-in t-e )o&ntry, or if it is s&'st$nti$lly simil$r to $ny ot-er &tility mo%el so 5no.n, &se% or %es)ri'e% .it-in t-e )o&ntry. Respon%ent )orpor$tion f$ile% to present 'efore t-e tri$l )o&rt )ompetent evi%en)e t-$t t-e &tility mo%els )overe% 'y t-e !etters #$tents iss&e% to petitioner .ere not ne.. T-is is evi%ent from t-e testimony of /$nito C&$, #resi%ent of respon%ent /$nito Corpor$tion, %&rin1 t-e -e$rin1 on t-e iss&$n)e of t-e in6&n)tion, to .it 2 F. Mr. C&$, yo& testifie% t-$t t-ere $re (si)) so m$ny ot-er )omp$nies .-i)- $lre$%y -$ve (si)) t-e sin12 $lon1 system even 'efore t-e p$tent $ppli)$tion of Mr. %el Ros$rio $n% $s $ m$tter of f$)t yo& mentione% S$nyo, Sony $n% S-$rp, is t-$t ri1-tO A. M&si)m$te $n% As$-i. F. No. %o yo& re)$ll t-$t yo&r l$.yer file% .it- t-is Honor$'le Co&rt $n Ur1ent Motion to !ift Tempor$ry Restr$inin1 Or%er of t-is Honor$'le Co&rt. I $m s&re yo& .ere t-e one .-o provi%e% -im .it- t-e inform$tion $'o&t t-e m$ny ot-er )omp$nies sellin1 t-e sin12$lon1 system, is t-$t ri1-tO T-ese +@ .-i)- yo& en&mer$te% -ere. A. More t-$n t-$t 'e)$&se = = =

F. No. yo& .ill $1ree .it- me t-$t in yo&r st$tement S-$rp yo& p&t t-e %$te $s +*@? $1ree%O A. No. F. Ho& me$n yo&r l$.yer .$s .ron1 .-en -e p&t t-e .or% S-$rp +*@?O A. M$y'e I informe% -im $lre$%y. === === ===

3. Ho& me$n yo&r l$.yer .$s .ron1 in $lle1in1 to t-is Co&rt t-$t S-$rp m$n&f$)t&re% $n% sol% (in) +*@? $s fo&n% in t-e Ur1ent MotionO A. Sin)e it is &r1ent it is more or less. 3. T-e s$me $lso .it- S$nyo +*@? .-i)- yo& p&t, more or lessO A. S$nyo is .ron1. F. It is not +*@?O A. S$nyo is +*,* I t-in5. F. So t-is is $lso .ron1. #$n$soni) +*@0 is $lso .ron1O A. #$n$soni) I t-in5. F. So yo& %onQt t-in5 t-is is $lso )orre)t. A. T-e %$teO F. So yo& %onQt t-in5 $lso t-$t t-is $lle1$tion -ere t-$t t-ey m$n&f$)t&re% in +*@0 is )orre)tO A. 8ron1. E$rlier. F. N$tion$l 'y #re)ision Ele)troni) +*@0 t-is is $lso .ron1O A. I t-in5 e$rlier. F. So t-$t me$ns $ll yo&r $lle1$tions -ere from ; to / $re .ron1O OD. y #-ilipps #-ilippines +*@0, t-is is $lso )orre)t or .ron1O A. More or less. 8e s$i% more or less. F. N$5$'&ts-i 'y As$-i Ele)troni)s t-$t is $lso .ron1O A. No, t-$t is +*,*. F. Ele)tone 'y (ICO +*@* is t-is )orre)t or .ron1O A. Corre)t. More or less. F. S5ylers +*@? is t-$t )orre)t or .ron1O A. It is more or less 'e)$&se it is &r1ent. 8e %onQt -$ve time to e=$)t t-e %$te. F. M&si)m$te of G.A. H&p$n1)o +*@+ t-is is more or lessO Ho& $re not $lso s&reO A. *?M s&re.

F. No. yo& $re s&re +*@+. A. T-is one 'e)$&se = = = F. Mr. 8itness so yo& $re no. tryin1 to tell t-is Honor$'le Co&rt t-$t $ll yo&r $lle1$tions -ere of t-e %$tes in t-is Ur1ent Motion e=)ept for M&si)m$te .-i)- yo& $re only *?M s&re t-ey $re $ll .ron1 or t-ey $re $lso more or less or not s&re, is t-$t ri1-tO A. More or less. F. No. %o yo& -$ve $ny proof, $ny $%vertisement, $nyt-in1 in .ritin1 t-$t .o&l% s-o. t-$t $ll t-ese instr&ments $re in t-e m$r5et, %o yo& -$ve itO A. No, I %onQt -$ve it 'e)$&se = = = F. No. I $m s$tisfie% .it- yo&r $ns.er. No. Mr. 8itness, yo& %onQt $lso -$ve $ proof t-$t A5$i instr&ment t-$t yo& s$i% .$s $lso in t-e m$r5et 'efore +*@;O Ho& %onQt -$ve $ny .ritten proof. $ny $%vertisementO A. I -$ve t-e pro%&)t. F. &t yo& -$ve not 'ro&1-t t-e pro%&)t in (si)) t-is Honor$'le Co&rt, ri1-tO

0&ird. Un%er Utility Mo%el No. ?;0*, $ tr$nsistoriBe% $mplifier )ir)&it .it- $n e)-o se)tion .ire% in $t le$st ; printe% )ir)&it 'o$r%s is pl$)e% insi%e t-e re$r )omp$rtment of t-e )$sin1 $n% $tt$)-e% to t-e verti)$l p$rtition .$ll, t-e printe% )ir)&it 'o$r% -$vin1 + $mplifier $n% + e)-o, .-ile in t-e mi(ata eC&ipment t-e $mplifier is m$inly IC (Inte1r$te% Cir)&it) 2 po.ere% .it- @ printe% )ir)&it 'o$r%s $lmost $ll of .-i)- $re IC )ontrolle%, .it- + $mplifier .it- po.er s&pply, + m$in t&ner, + eC&$liBer (<2'$n%), + IC )ontrolle% vol&me )ontrol, + e)-o IC, + t$pe pre$m, + instr&ment $n% + .ireless mi)rop-one. .o$rt&. Un%er Utility Mo%el ?;0*, 4 printe% )ir)&its $re pl$)e% insi%e t-e )omp$rtment of its )$sin1 $tt$)-e% to t-e verti)$l p$rtition .$ll, .-ile in t-e mi(ata" t-e , printe% )ir)&it 'o$r%s (#C ) $re $tt$)-e% to t-e front p$nel $n% + $tt$)-e% to t-e -oriBont$l %ivi%er. .ift&. Un%er Utility Mo%el ?;0*, t-ere $re v$rio&s )ontrols mo&nte% on t-e )ontrol p$nel of t-e )$sin1, .-ile in mi(ata" t-e v$rio&s )ontrols $re $ll sep$r$te% from t-e printe% )ir)&it 'o$r%s $n% t-e v$rio&s )ontrols $re $ll $tt$)-e% t-ereto. Si4t&. Un%er Utility Mo%el ?;0*, $ lo&% spe$5er fitte% insi%e t-e front )omp$rtment of t-e )$sin1 is )onne)te% to t-e o&tp&t of t-e m$in $&%io $mplifier se)tion of t-e tr$nsistoriBe% $mplifier )ir)&it, .-ile in mi(ata" t-ere is no ot-er .$y '&t to &se ; lo&% spe$5ers )onne)te% to t-e $mplifier. Sevent&. Un%er Utility Mo%el ?;0*, $ t$pe pl$yer is mo&nte% on t-e top .$ll of t-e )$sin1, .-ile in mi(ata" ; t$pe pl$yers $re &se% mo&nte% si%e 'y si%e $t t-e front. It is element$ry t-$t $ p$tent m$y 'e infrin1e% .-ere t-e essenti$l or s&'st$nti$l fe$t&res of t-e p$tente% invention $re t$5en or $ppropri$te%, or t-e %evi)e, m$)-ine or ot-er s&'6e)t m$tter $lle1e% to infrin1e is s&'st$nti$lly i%enti)$l .it- t-e p$tente% invention. In or%er to infrin1e $ p$tent, $ m$)-ine or %evi)e m&st perform t-e s$me f&n)tion, or $))omplis- t-e s$me res&lt 'y i%enti)$l or s&'st$nti$lly i%enti)$l me$ns $n% t-e prin)iple or mo%e of oper$tion m&st 'e s&'st$nti$lly t-e s$me.J+0K It m$y 'e note% t-$t respon%ent )orpor$tion f$ile% to present 'efore t-e tri$l )o&rt $ )le$r, )ompetent $n% reli$'le )omp$rison 'et.een its o.n mo%el $n% t-$t of petitioner, $n% %isre1$r%e% )ompletely petitionerQs Utility Mo%el No. 0;<, .-i)- improve% on -is first p$tente% mo%el. Not.it-st$n%in1 t-e %ifferen)es )ite% 'y respon%ent )orpor$tion, it %i% not ref&te $n% %isprove t-e $lle1$tions of petitioner 'efore t-e tri$l )o&rt t-$t: ($) 'ot- $re &se% 'y $ sin1er to sin1 $n% $mplify -is voi)e7 (') 'ot- $re &se% to sin1 .it- $ min&s2one or m&ltiple= t$pes, or t-$t 'ot- $re &se% to pl$y min&s2one or st$n%$r% )$ssette t$pes for sin1in1 or for listenin1 to7 ()) 'ot- $re &se% to sin1 .it- $ min&s2one t$pe $n% m&ltiple= t$pe $n% to re)or% t-e sin1in1 $n% t-e $))omp$niment7 (%) 'ot- $re &se% to sin1 .it- live $))omp$niment $n% to re)or% t-e s$me7 (e) 'ot- $re &se% to en-$n)e t-e voi)e of t-e sin1er &sin1 e)-o effe)t, tre'le, '$ss $n% ot-er )ontrols7 (1) 'ot- $re eC&ippe% .it- )$ssette t$pe %e)5s .-i)- $re inst$lle% .it- one 'ein1 &se% for pl$y'$)5 $n% t-e ot-er, for re)or%in1 t-e sin1er $n% t-e $))omp$niment, $n% 'ot- m$y $lso 'e &se% to re)or% $ spe$5erQs voi)e or instr&ment$l pl$yin1, li5e t-e 1&it$r $n% ot-er instr&ments7 (-) 'ot- $re en)$se% in $ 'o=2li5e )$'inets7 $n%, (i) 'ot- )$n 'e &se% .itone or more mi)rop-ones.J+,K Cle$rly, t-erefore, 'ot- petitionerQs $n% respon%entQs mo%els involve s&'st$nti$lly t-e s$me mo%es of oper$tion $n% pro%&)e s&'st$nti$lly t-e s$me if not i%enti)$l res&lts .-en &se%. In vie. t-ereof, .e fin% t-$t petitioner -$% est$'lis-e% 'efore t-e tri$l )o&rt prima facie proof of viol$tion of -is ri1-ts $s p$tentee to 6&stify t-e iss&$n)e of $ .rit of prelimin$ry in6&n)tion in -is f$vor %&rin1 t-e pen%en)y of t-e m$in s&it for %$m$1es res&ltin1 from t-e $lle1e% infrin1ement.
8HERE"ORE, t-e (e)ision of t-e Co&rt of Appe$ls %$te% +? Novem'er +**< is REGERSE( $n% SET ASI(E $n% t-e Or%er of t-e tri$l )o&rt %$te% ;4 "e'r&$ry +**< 1r$ntin1 petitioner t-e .rit of in6&n)tion is REINSTATE(. T-e tri$l )o&rt is %ire)te% to )ontin&e .it- t-e pro)ee%in1s on t-e m$in $)tion pen%in1 'efore it in or%er to resolve .it- %isp$t)- t-e iss&es t-erein presente%.SO OR(ERE(.Padilla 1C&airman2" -it$)" 5ap$nan" $n% Hermosisima" Jr." JJ." )on)&r.

A. No.J+<K As m$y 'e 1le$ne% -erein, t-e ri1-ts of petitioner $s $ p$tentee -$ve 'een s&ffi)iently est$'lis-e%, )ontr$ry to t-e fin%in1s $n% )on)l&sions of respon%ent Co&rt of Appe$ls. ConseC&ently, &n%er Se). <, of T-e #$tent l$., petitioner $s $ p$tentee s-$ll -$ve t-e e=)l&sive ri1-t to m$5e, &se $n% sell t-e p$tente% m$)-ine, $rti)le or pro%&)t for t-e p&rpose of in%&stry or )ommer)e, t-ro&1-o&t t-e territory of t-e #-ilippines for t-e term of t-e p$tent, $n% s&)- m$5in1, &sin1 or sellin1 'y $ny person .it-o&t $&t-oriB$tion of t-e p$tentee )onstit&tes infrin1ement of -is p$tent. #etitioner est$'lis-e% 'efore t-e tri$l )o&rt t-$t respon%ent /$nito Corpor$tion .$s m$n&f$)t&rin1 $ simil$r sin12 $lon1 system 'e$rin1 t-e tr$%em$r5 mi(ata .-i)- infrin1e% -is p$tente% mo%els. He $lso $lle1e% t-$t 'ot- -is o.n p$tente% $&%io eC&ipment $n% respon%entQs sin12$lon1 system .ere )onstr&)te% in $ )$sin1 .it- $ )ontrol p$nel, t-e )$sin1 -$vin1 $ verti)$l p$rtition .$ll %efinin1 t-e re$r )omp$rtment from t-e front )omp$rtment, .it- t-e front )omp$rtment )onsistin1 of $ lo&% spe$5er '$ffle, 'ot- )ont$inin1 $ tr$nsistoriBe% $mplifier )ir)&it )$p$'le of 'ein1 oper$te% from o&tsi%e t-ro&1- v$rio&s )ontrols mo&nte% on t-e )ontrol p$nel, $n% t-$t 'ot- -$% lo&% spe$5ers fitte% insi%e t-e front )omp$rtment of t-e )$sin1 $n% )onne)te% to t-e o&tp&t of t-e m$in $&%io $mplifier se)tion 'ot- -$vin1 $ t$pe re)or%er $n% $ t$pe pl$yer mo&nte% on t-e )ontrol p$nel .it- t-e t$pe re)or%er $n% t$pe pl$yer 'ein1 'ot)onne)te% to t-e tr$nsistoriBe% $mplifier )ir)&it.J+4K Respon%ent /$nito Corpor$tion %enie% t-$t t-ere .$s $ny viol$tion of petitionerQs p$tent ri1-ts, $n% )ite% t-e %ifferen)es 'et.een its mi(ata e#$ipment $n% petitionerQs $&%io eC&ipment. &t, it m&st 'e emp-$siBe%, respon%ent only )onfine% its )omp$rison to t-e first mo%el, Utility Mo%el No. ?;0*, $n% )ompletely %isre1$r%e% Utility Mo%el No. 0;<, .-i)- improve% on t-e first. As %es)ri'e% 'y respon%ent )orpor$tion, J+?K t-ese %ifferen)es $re R .irst. Un%er Utility Mo%el ?;0*, t-e &nit is $ s&'st$nti$lly )&'i)$l )$sin1 .it- $ .in%o. $t its re$r $n% &pper )orner fitte% .it- sli1-tly in)line% )ontrol p$nel, .-ile t-e mi(ataeC&ipment is $ s&'st$nti$lly re)t$n1&l$r )$sin1 .itp$nel verti)$lly positione%. Second. Un%er Utility Mo%el ?;0*, t-e )&'i)$l )$sin1 -$s $ verti)$l p$rtition .$ll %efinin1 $ re$r )omp$rtment $n% $ front )omp$rtment servin1 $s $ spe$5er '$ffle, .-ile t-e mi(ata eC&ipment -$s no re$r )omp$rtment $n% front )omp$rtment in its re)t$n1&l$r )$sin17 it -$s only $ front )omp$rtment -oriBont$lly %ivi%e% into < )omp$rtments li5e $ <2 storey '&il%in1, t-e +st )omp$rtment 'ein1 $ 5it, t-e ;n% $lso t-e spe$5er, $n% t-e <r% $re 5its.

ANGE!ITA MANNANO, petitioner" vs. COURT O" A##EA!S, $n% ME!ECIA MA(O!ARIA, $s Assi1nor to NE8 UNITE( "OUN(RH MANU"ACTURING COR#ORATION, respondents. E!!OSI!!O, J.: T-e prim$ry p&rpose of t-e p$tent system is not t-e re.$r% of t-e in%ivi%&$l '&t t-e $%v$n)ement of t-e $rts $n% s)ien)es. T-e f&n)tion of $ p$tent is to $%% to t-e s&m of &sef&l 5no.le%1e $n% one of t-e p&rposes of t-e p$tent system is to en)o&r$1e %issemin$tion of inform$tion )on)ernin1 %is)overies $n% inventions. T-is is $ m$tter .-i)- is properly .it-in t-e )ompeten)e of t-e #$tent Offi)e t-e offi)i$l $)tion of .-i)- -$s t-e pres&mption of )orre)tness $n% m$y not 'e interfere% .it- in t-e $'sen)e of ne. evi%en)e )$rryin1 t-oro&1- )onvi)tion t-$t t-e Offi)e -$s erre%. Sin)e t-e #$tent Offi)e is $n e=pert 'o%y preeminently C&$lifie% to %etermine C&estions of p$tent$'ility, its fin%in1s m&st 'e $))epte% if t-ey $re )onsistent .it- t-e evi%en)e, .it- %o&'ts $s to p$tent$'ility resolve% in f$vor of t-e #$tent Offi)e.J+K #etitioner An1elit$ M$nB$no file% .it- t-e #-ilippine #$tent Offi)e on +* "e'r&$ry +*@; $n $)tion for t-e )$n)ell$tion of !etters #$tent No. UM2403* for $ 1$s '&rner re1istere% in t-e n$me of respon%ent Mele)i$ M$%ol$ri$ .-o s&'seC&ently $ssi1ne% t-e letters p$tent to Ne. Unite% "o&n%ry $n% M$n&f$)t&rin1 Corpor$tion (UNITE( "OUN(RH, for 'revity). #etitioner $lle1e% t-$t ($) t-e &tility mo%el )overe% 'y t-e letters p$tent, in t-is )$se, $n !#G 1$s '&rner, .$s not inventive, ne. or &sef&l7 (') t-e spe)ifi)$tion of t-e letters p$tent %i% not )omply .it- t-e reC&irements of Se). +4, RA No. +0?, $s $men%e%7 ()) respon%ent Mele)i$ M$%ol$ri$ .$s not t-e ori1in$l, tr&e $n% $)t&$l inventor nor %i% s-e %erive -er ri1-ts from t-e ori1in$l, tr&e $n% $)t&$l inventor of t-e &tility mo%el )overe% 'y t-e letters p$tent7 $n%, (%) t-e letters p$tent .$s se)&re% 'y me$ns of fr$&% or misrepresent$tion. In s&pport of -er petition for )$n)ell$tion petitioner f&rt-er $lle1e% t-$t ($) t-e &tility mo%el )overe% 'y t-e letters p$tent of respon%ent -$% 'een 5no.n or &se% 'y ot-ers in t-e #-ilippines for more t-$n one (+) ye$r 'efore s-e file% -er $ppli)$tion for letters p$tent on * (e)em'er +*,*7 (') t-e pro%&)ts .-i)- .ere pro%&)e% in $))or%$n)e .it- t-e &tility mo%el )overe% 'y t-e letters p$tent -$% 'een in p&'li) &se or on s$le in t-e #-ilippines for more t-$n one (+) ye$r 'efore t-e $ppli)$tion for p$tent t-erefor .$s file%. #etitioner presente% t-e follo.in1 %o)&ments .-i)- s-e )orrespon%in1ly m$r5e% $s e=-i'its: ($) $ffi%$vit of petitioner $lle1in1 t-e e=isten)e of prior $rt, m$r5e% E=-. SA7T (') $ 'ro)-&re %istri'&te% 'y M$nil$ G$s Corpor$tion %is)losin1 $ pi)tori$l represent$tion of R$nsome &rner m$%e 'y R$nsome Tor)- $n% &rner Comp$ny, USA, m$r5e% E=-. S(7T $n%, ()) $ 'ro)-&re %istri'&te% 'y Esso G$s&l or Esso St$n%$r% E$stern, In)., of t-e #-ilippines s-o.in1 $ pi)t&re of $not-er simil$r '&rner .it- top elev$tion vie. $n% $not-er perspe)tive vie. of t-e s$me '&rner, m$r5e% E=-. SE.T Testifyin1 for -erself petitioner n$rr$te% t-$t -er -&s'$n% On1 &n T&$ .or5e% $s $ -elper in t-e UNITE( "OUN(RH .-ere respon%ent Mele)i$ M$%ol$ri$ &se% to 'e $ffili$te% .it- from +*0? to +*,37 t-$t On1 -elpe% in t-e )$stin1 of $n !#G '&rner .-i)- .$s t-e s$me &tility mo%el of $ '&rner for .-i)- !etters #$tent No. UM2403* .$s iss&e%, $n% t-$t $fter -er -&s'$n%Qs sep$r$tion from t-e s-op s-e or1$niBe% es)o Met$l M$n&f$)t&rin1 ( ESCO META!, for 'revity) for t-e )$stin1 of !#G '&rners one of .-i)- -$% t-e )onfi1&r$tion, form $n% )omponent p$rts simil$r to t-ose 'ein1 m$n&f$)t&re% 'y UNITE( "OUN(RH. #etitioner presente% in evi%en)e $n $lle1e% mo%el of $n !#G '&rner m$r5e% E=-. SDT $n% )overe% 'y t-e !etters #$tent of respon%ent, $n% testifie% t-$t it .$s 1iven to -er in /$n&$ry +*@; 'y one of -er )&stomers .-o $lle1e%ly $)C&ire% it from UNITE( "OUN(RH. #etitioner $lso presente% in evi%en)e -er o.n mo%el of $n !#G '&rner )$lle% SR$nsomeT '&rner m$r5e% E=-. S!,T .-i)- .$s $lle1e%ly m$n&f$)t&re% in +*,4 or +*,? $n% sol% 'y -er in t-e )o&rse of -er '&siness oper$tion in t-e n$me of ESCO META!. #etitioner )l$ime% t-$t t-is SR$nsomeT '&rner (E=-. S!T) -$% t-e s$me )onfi1&r$tion $n% me)-$nism $s t-$t of t-e mo%el .-i)- .$s p$tente% in f$vor of priv$te respon%ent Mele)i$ M$%ol$ri$. Also presente% 'y petitioner .$s $ '&rner )&p of $n importe% SR$nsomeT '&rner m$r5e% E=- SMT .-i)- .$s $lle1e%ly e=istin1 even 'efore t-e p$tent $ppli)$tion of priv$te respon%ent.

#etitioner presente% t.o (;) ot-er .itnesses, n$mely, -er -&s'$n% On1 &n T&$ $n% "i%el "r$n)is)o. On1 testifie% t-$t -e .or5e% $s $ -elper in t-e UNITE( "OUN(RH from +*0? to +*,3 .-ere -e -elpe% in t-e )$stin1 of !#G '&rners .it- t-e s$me form, )onfi1&r$tion $n% me)-$nism $s t-$t of t-e mo%el )overe% 'y t-e !etters #$tent iss&e% to priv$te respon%ent. "r$n)is)o testifie% t-$t -e -$% 'een employe% .it- t-e M$nil$ G$s Corpor$tion from +*<3 to +*4+ $n% from +*?; &p to +*0* .-ere -e retire% $s s&pervisor $n% t-$t M$nil$ G$s Corpor$tion importe% SR$nsomeT '&rners .$y '$)5 in +*0? .-i)- .ere $%vertise% t-ro&1- 'ro)-&res to promote t-eir s$le. #riv$te respon%ent, on t-e ot-er -$n%, presente% only one .itness, Rol$n%o M$%ol$ri$, .-o testifie%, $mon1 ot-ers, t-$t -e .$s t-e Gener$l S&pervisor of t-e UNITE( "OUN(RH in t-e fo&n%ry, m$)-ine $n% '&ffin1 se)tion7 t-$t in -is e$rly ye$rs .it- t-e )omp$ny, UNITE( "OUN(RH .$s en1$1e% in t-e m$n&f$)t&re of %ifferent 5in%s of 1$s stoves $s .ell $s '&rners '$se% on s5et)-es $n% spe)ifi)$tions f&rnis-e% 'y )&stomers7 t-$t t-e )omp$ny m$n&f$)t&re% e$rly mo%els of sin1le2pie)e types of '&rners .-ere t-e mo&t- $n% t-ro$t .ere not %et$)-$'le7 t-$t in t-e l$tter p$rt of +*,@ respon%ent Mele)i$ M$%ol$ri$ )onfi%e% in -im t-$t )ompl$ints .ere 'ein1 'ro&1-t to -er $ttention )on)ernin1 t-e e$rly mo%els 'ein1 m$n&f$)t&re%7 t-$t -e .$s t-en instr&)te% 'y priv$te respon%ent to )$st sever$l e=periment$l mo%els '$se% on revise% s5et)-es $n% spe)ifi)$tions7 t-$t priv$te respon%ent $1$in m$%e some innov$tions7 t-$t $fter $ fe. mont-s, priv$te respon%ent %is)overe% t-e sol&tion to $ll t-e %efe)ts of t-e e$rlier mo%els $n%, '$se% on -er l$test s5et)-es $n% spe)ifi)$tions, -e .$s $'le to )$st sever$l mo%els in)orpor$tin1 t-e $%%itions to t-e innov$tions intro%&)e% in t-e mo%els. G$rio&s tests .ere )on%&)te% on t-e l$test mo%el in t-e presen)e $n% &n%er t-e s&pervision of Mele)i$ M$%ol$ri$ $n% t-ey o't$ine% perfe)t res&lts. Rol$n%o M$%ol$ri$ testifie% t-$t priv$te respon%ent %e)i%e% to file -er $ppli)$tion for &tility mo%el p$tent in (e)em'er +*,*. On , /&ly +*@0 t-e (ire)tor of #$tents Ces$r C. S$n%ie1o iss&e% (e)ision No. @02?0 %enyin1 t-e petition for )$n)ell$tion $n% -ol%in1 t-$t t-e evi%en)e of petitioner .$s not $'le to est$'lis- )onvin)in1ly t-$t t-e p$tente% &tility mo%el of priv$te respon%ent .$s $nti)ip$te%. Not one of t-e v$rio&s pi)tori$l represent$tions of '&siness )le$rly $n% )onvin)in1ly s-o.e% t-$t t-e %evi)es presente% 'y petitioner .$s i%enti)$l or s&'st$nti$lly i%enti)$l .it- t-e &tility mo%el of t-e respon%ent. T-e %e)ision $lso st$te% t-$t even $ss&min1 t-$t t-e 'ro)-&res %epi)te% )le$rly e$)- $n% every element of t-e p$tente% 1$s '&rner %evi)e so t-$t t-e prior $rt $n% p$tente% %evi)e 'e)$me i%enti)$l $lt-o&1- in tr&tt-ey .ere not, t-ey )o&l% not serve $s $nti)ip$tory '$rs for t-e re$son t-$t t-ey .ere &n%$te%. T-e %$tes .-en t-ey .ere %istri'&te% to t-e p&'li) .ere not in%i)$te% $n%, t-erefore, .ere &seless prior $rt referen)es. T-e re)or%s $n% evi%en)e $lso %o not s&pport t-e petitionerQs )ontention t-$t !etters #$tent No. UM2403* .$s o't$ine% 'y me$ns of fr$&% $n%>or misrepresent$tion. No evi%en)e .-$tsoever .$s presente% 'y petitioner to s-o. t-$t t-e t-en $ppli)$nt Mele)i$ M$%ol$ri$ .it--el% .it- intent to %e)eive m$teri$l f$)ts .-i)-, if %is)lose%, .o&l% -$ve res&lte% in t-e ref&s$l 'y t-e #-ilippine #$tent Offi)e to iss&e t-e !etters #$tent &n%er inC&iry. #etitioner elev$te% t-e %e)ision of t-e (ire)tor of #$tents to t-e Co&rt of Appe$ls .-i)- on +? O)to'er +**< $ffirme% t-e %e)ision of t-e (ire)tor of #$tents. Hen)e, t-is petition for revie. on certiorari $lle1in1 t-$t t-e Co&rt of Appe$ls erre% ($) in relyin1 on im$1in$ry %ifferen)es .-i)- in $)t&$lity %i% not e=ist 'et.een t-e mo%el of priv$te respon%ent )overe% 'y !etters #$tent No. UM2403* $n% t-e previo&sly 5no.n mo%el of Esso St$n%$r% E$stern, In)., $n% M$nil$ G$s Corpor$tion, m$5in1 s&)- im$1in$ry %ifferen)es 1ro&n%e% entirely on spe)&l$tion, s&rmises $n% )on6e)t&res7 (') in ren%erin1 6&%1ment '$se% on mis$ppre-ension of f$)ts7 ()) in relyin1 m$inly on t-e testimony of priv$te respon%entQs sole .itness Rol$n%o M$%ol$ri$7 $n%, (%) in not )$n)elin1 !etters #$tent No. UM2403* in t-e n$me of priv$te respon%ent. #etitioner s&'mits t-$t t-e %ifferen)es )ite% 'y t-e Co&rt of Appe$ls 'et.een t-e &tility mo%el of priv$te respon%ent $n% t-e mo%els of M$nil$ G$s Corpor$tion $n% Esso St$n%$r% E$stern, In)., $re more im$1in$ry t-$n re$l. S-e $lle1es t-$t '$se% on E=-s. SE,T SE2+,T S"T $n% S"2+T or t-e 'ro)-&res of M$nil$ G$s Corpor$tion $n% Esso St$n%$r% E$stern, In)., presente% 'y petitioner, t-e )&p2s-$pe% '&rner mo&t- $n% t-re$%e% -ole on t-e si%e $re s-o.n to 'e simil$r to t-e &tility mo%el of priv$te respon%ent. T-e e=-i'its $lso s-o. $ %et$)-$'le '&rner mo&t- -$vin1 $ pl&r$lity of &p.$r%ly e=istin1 &n%&l$tions $%opte% to $)t $s 1$s p$ss$1e .-en t-e )over is $tt$)-e% to t-e top of s$i% )&p2s-$pe% mo&t- $ll of .-i)- $re t-e s$me $s t-ose in t-e p$tente% mo%el. #etitioner $lso %enies $s s&'st$nti$l

%ifferen)e t-e s-ort )ylin%ri)$l t&'e of t-e '&rner mo&t- $ppe$rin1 in t-e 'ro)-&res of t-e '&rners 'ein1 sol% 'y M$nil$ G$s Corpor$tion $n% t-e lon1 )ylin%ere% t&'e of priv$te respon%entQs mo%el of t-e 1$s '&rner. #etitioner $r1&es t-$t t-e $)t&$l %emonstr$tion m$%e %&rin1 t-e -e$rin1 %is)lose% t-e simil$rities in form, oper$tion $n% me)-$nism $n% p$rts 'et.een t-e &tility mo%el of priv$te respon%ent $n% t-ose %epi)te% in t-e 'ro)-&res. T-e fin%in1s of t-e #$tent Offi)e $n% t-e Co&rt of Appe$ls t-$t t-e 'ro)-&res of M$nil$ G$s Corpor$tion $n% Esso St$n%$r% E$stern, In)., $re &n%$te% )$nnot over)ome t-e f$)t of t-eir )ir)&l$tion 'efore priv$te respon%ent file% -er $ppli)$tion for &tility mo%el p$tent. #etitioner t-&s $s5s t-is Co&rt to t$5e 6&%i)i$l noti)e of t-e f$)t t-$t Esso St$n%$r% E$stern, In)., %is$ppe$re% 'efore +*,* $n% re$ppe$re% only %&rin1 t-e M$rti$l !$. ye$rs $s #etrop-il Corpor$tion. #etitioner $lso emp-$siBes t-$t t-e 'ro)-&res in%i)$te% t-e telep-one n&m'er of M$nil$ G$s Corpor$tion $s ?2,*2@+ .-i)- is $ five (?) n&m'ere% telep-one n&m'er e=istin1 'efore +*,? 'e)$&se telep-ones in Metro M$nil$ st$rte% to -$ve si= (0) n&m'ers only $fter t-$t ye$r. #etitioner f&rt-er )onten%s t-$t t-e &tility mo%el of priv$te respon%ent is $'sol&tely simil$r to t-e !#G '&rner 'ein1 sol% 'y petitioner in +*,? $n% +*,0, $n% $lso to t-e SR$nsomeT '&rner %epi)te% in t-e ol% 'ro)-&res of M$nil$ G$s Corpor$tion $n% Esso St$n%$r% E$stern, In)., f$'ri)$te% 'y R$nsome Tor)- $n% &rner Comp$ny of O$5l$n%, C$liforni$, USA, espe)i$lly .-en )onsi%ere% t-ro&1- $)t&$l p-ysi)$l e=$min$tion, $ssem'ly $n% %is$ssem'ly of t-e mo%els of petitioner $n% priv$te respon%ent. #etitioner f$&lts t-e Co&rt of Appe$ls for %isre1$r%in1 t-e testimonies of On1 &n T&$ $n% "i%el "r$n)is)o for t-eir f$il&re to pro%&)e %o)&ments on t-e $lle1e% import$tion 'y M$nil$ G$s Corpor$tion of SR$nsomeT '&rners in +*0? .-i)- -$% t-e s$me )onfi1&r$tion, form $n% me)-$nism $s t-$t of t-e priv$te respon%entQs p$tente% mo%el. "in$lly, it is $r1&e% t-$t t-e testimony of priv$te respon%entQs lone .itness Rol$n%o M$%ol$ri$ s-o&l% not -$ve 'een 1iven .ei1-t 'y t-e #$tent Offi)e $n% t-e Co&rt of Appe$ls 'e)$&se it )ont$ine% mere $fter2t-o&1-ts $n% pretensions. 8e )$nnot s&st$in petitioner. Se)tion , of RA No. +0?, $s $men%e%, .-i)- is t-e l$. on p$tents, e=pressly provi%es 2 Se). ,. %nventions patentable. Any invention of $ ne. $n% &sef&l m$)-ine, m$n&f$)t&re% pro%&)t or s&'st$n)e, pro)ess or $n improvement of $ny of t-e fore1oin1, s-$ll 'e p$tent$'le. "&rt-er, Se). ?? of t-e s$me l$. provi%es 2 Se). ??. !esi)n patents and patents for $tilit( models. 2 ($) Any ne., ori1in$l $n% orn$ment$l %esi1n for $n $rti)le of m$n&f$)t&re $n% (') $ny ne. mo%el of implements or tools or of $ny in%&stri$l pro%&)t or of p$rt of t-e s$me, .-i)%oes not possess t-e C&$lity of invention, '&t .-i)- is of pr$)ti)$l &tility 'y re$son of its form, )onfi1&r$tion, )onstr&)tion or )omposition, m$y 'e prote)te% 'y t-e $&t-or t-ereof, t-e former 'y $ p$tent for $ %esi1n $n% t-e l$tter 'y $ p$tent for $ &tility mo%el, in t-e s$me m$nner $n% s&'6e)t to t-e s$me provisions $n% reC&irements $s rel$te to p$tents for inventions insof$r $s t-ey $re $ppli)$'le e=)ept $s ot-er.ise -erein provi%e%. T-e element of novelty is $n essenti$l reC&isite of t-e p$tent$'ility of $n invention or %is)overy. If $ %evi)e or pro)ess -$s 'een 5no.n or &se% 'y ot-ers prior to its invention or %is)overy 'y t-e $ppli)$nt, $n $ppli)$tion for $ p$tent t-erefor s-o&l% 'e %enie%7 $n% if t-e $ppli)$tion -$s 'een 1r$nte%, t-e )o&rt, in $ 6&%i)i$l pro)ee%in1 in .-i)- t-e v$li%ity of t-e p$tent is %r$.n in C&estion, .ill -ol% it voi% $n% ineffe)tive. J;K It -$s 'een repe$te%ly -el% t-$t $n invention m&st possess t-e essenti$l elements of novelty, ori1in$lity $n% pre)e%en)e, $n% for t-e p$tentee to 'e entitle% to t-e prote)tion t-e invention m&st 'e ne. to t-e .orl%.J<K In iss&in1 !etters #$tent No. UM2403* to Mele)i$ M$%ol$ri$ for $n S!#G &rnerT on ;; /&ly +*@+, t-e #-ilippine #$tent Offi)e fo&n% -er invention novel $n% p$tent$'le. T-e iss&$n)e of s&)- p$tent )re$tes $ pres&mption .-i)-

yiel%s only to )le$r $n% )o1ent evi%en)e t-$t t-e p$tentee .$s t-e ori1in$l $n% first inventor. T-e '&r%en of provin1 .$nt of novelty is on -im .-o $vers it $n% t-e '&r%en is $ -e$vy one .-i)- is met only 'y )le$r $n% s$tisf$)tory proof .-i)- over)omes every re$son$'le %o&'t.J4K Hen)e, $ &tility mo%el s-$ll not 'e )onsi%ere% Sne.T if 'efore t-e $ppli)$tion for $ p$tent it -$s 'een p&'li)ly 5no.n or p&'li)ly &se% in t-is )o&ntry or -$s 'een %es)ri'e% in $ printe% p&'li)$tion or p&'li)$tions )ir)&l$te% .it-in t-e )o&ntry, or if it is s&'st$nti$lly simil$r to $ny ot-er &tility mo%el so 5no.n, &se% or %es)ri'e% .it-in t-e )o&ntry.J?K As fo&n% 'y t-e (ire)tor of #$tents, t-e st$n%$r% of evi%en)e s&ffi)ient to over)ome t-e pres&mption of le1$lity of t-e iss&$n)e of UM2403* to respon%ent M$%ol$ri$ .$s not le1$lly met 'y petitioner in -er $)tion for t-e )$n)ell$tion of t-e p$tent. T-&s t-e (ire)tor of #$tents e=pl$ine% -is re$sons for t-e %eni$l of t-e petition to )$n)el priv$te respon%entQs p$tent 2 S)r&tiny of E=-s. S(T $n% SET re$%ily reve$ls t-$t t-e &tility mo%el (!#G &rner) is not $nti)ip$te%. Not one of t-e v$rio&s pi)tori$l represent$tions of '&rners )le$rly $n% )onvin)in1ly s-o. t-$t t-e %evi)e presente% t-erein is i%enti)$l or s&'st$nti$lly i%enti)$l in )onstr&)tion .it- t-e $fores$i% &tility mo%el. It is relev$nt $n% m$teri$l to st$te t-$t in %eterminin1 .-et-er novelty or ne.ness is ne1$tive% 'y $ny prior $rt, only one item of t-e prior $rt m$y 'e &se% $t $ time. "or $nti)ip$tion to o))&r, t-e prior $rt m&st s-o. t-$t e$)- element is fo&n% eit-er e=pressly or %es)ri'e% or &n%er prin)iples of in-eren)y in $ sin1le prior $rt referen)e or t-$t t-e )l$ime% invention .$s pro'$'ly 5no.n in $ sin1le prior $rt %evi)e or pr$)ti)e. (5alman v. 5imberl( Clar*" ;+@ US#F ,@+, ,@*) Even $ss&min1 )ratia ar)$endi t-$t t-e $fores$i% 'ro)-&res %o %epi)t )le$rly on $ll fo&rs e$)- $n% every element of t-e p$tente% 1$s '&rner %evi)e so t-$t t-e prior $rt $n% t-e s$i% p$tente% %evi)e 'e)ome i%enti)$l, $lt-o&1- in tr&tt-ey $re not, t-ey )$nnot serve $s $nti)ip$tory '$rs for t-e re$son t-$t t-ey $re &n%$te%. T-e %$tes .-en t-ey .ere %istri'&te% to t-e p&'li) .ere not in%i)$te% $n%, t-erefore, t-ey $re &seless prior $rt referen)es. ===="&rt-ermore, $n% more si1nifi)$ntly, t-e mo%el m$r5e% E=-. SDT %oes not s-o. .-et-er or not it .$s m$n&f$)t&re% $n%>or )$st 'efore t-e $ppli)$tion for t-e iss&$n)e of p$tent for t-e !#G '&rner .$s file% 'y Mele)i$ M$%ol$ri$. 8it- respe)t to E=-. S!,T petitioner )l$ime% it to 'e -er o.n mo%el of !#G '&rner $lle1e%ly m$n&f$)t&re% sometime in +*,4 or +*,? $n% sol% 'y -er in t-e )o&rse of -er '&siness oper$tion in t-e n$me of es)o Met$l M$n&f$)t&rin1, .-i)'&rner .$s %enomin$te% $s SR$nsomeT '&rner ==== &t $ )$ref&l e=$min$tion of E=-. S!T .o&l% s-o. t-$t it %oes not 'e$r t-e .or% SR$nsomeT .-i)- is t-e '&rner referre% to $s t-e pro%&)t 'ein1 sol% 'y t-e #etitioner. T-is is not t-e .$y to prove t-$t E=-. S!T $nti)ip$tes !etters #$tent No. UM2403* t-ro&1- E=-s. SCT $n% S(.T Anot-er f$)tor .or5in1 $1$inst t-e #etitionerQs )l$ims is t-$t $n e=$min$tion of E=-. S!T .o&l% %is)lose t-$t t-ere is no in%i)$tion of t-e time or %$te it .$s m$n&f$)t&re%. T-is Offi)e, t-&s -$s no .$y of %eterminin1 .-et-er E=-. S!T .$s re$lly m$n&f$)t&re% 'efore t-e filin1 of t-e $fores$i% $ppli)$tion .-i)- m$t&re% into !etters #$tent No. UM2403*, s&'6e)t m$tter of t-e )$n)ell$tion pro)ee%in1. At t-is 6&n)t&re, it is .ort-.-ile to point o&t t-$t petitioner $lso presente% E=-. SMT .-i)- is t-e $lle1e% '&rner )&p of $n importe% SR$nsomeT '&rner. A1$in, t-is Offi)e fin%s t-e s$me $s &nreli$'le evi%en)e to s-o. $nti)ip$tion. It o'serve% t-$t t-ere is no %$te in%i)$te% t-erein $s to .-en it .$s m$n&f$)t&re% $n%>or importe% 'efore t-e filin1 of t-e $ppli)$tion for iss&$n)e of p$tent of t-e s&'6e)t &tility mo%el. 8-$t is more, some )omponent p$rts of E=-. SMT $re missin1, $s only t-e )&p .$s presente% so t-$t t-e s$me )o&l% not 'e )omp$re% to t-e &tility mo%el (s&'6e)t m$tter of t-is )$se) .-i))onsists of sever$l ot-er %et$)-$'le p$rts in )om'in$tion to form t-e )omplete !#G '&rner. ====It m&st li5e.ise 'e pointe% o&t t-$t On1 &n T&$ testifie% on t-e 'ro)-&res $lle1e%ly of M$nil$ G$s $n% of Esso G$s&l m$r5e% E=-s. SET $n% S"T $n% on t-e $lle1e% f$)t t-$t M$nil$ G$s Corpor$tion .$s importin1 from t-e

Unite% St$tes SR$nsomeT '&rners. &t t-e s$me )o&l% not 'e 1iven )re%en)e sin)e -e -imself $%mitte% %&rin1 )ross2 e=$min$tion t-$t -e -$s never 'een )onne)te% .it- M$nil$ G$s Corpor$tion. He )o&l% not even present $ny import$tion p$pers rel$tin1 to t-e $lle1e% importe% r$nsome '&rners. Neit-er %i% -is .ife.J0K T-e $'ove fin%in1s $n% )on)l&sions of t-e (ire)tor of #$tent .ere reiter$te% $n% $ffirme% 'y t-e Co&rt of Appe$ls.J,K T-e v$li%ity of t-e p$tent iss&e% 'y t-e #-ilippine #$tent Offi)e in f$vor of priv$te respon%ent $n% t-e C&estion over t-e inventiveness, novelty $n% &sef&lness of t-e improve% mo%el of t-e !#G '&rner $re m$tters .-i)- $re 'etter %etermine% 'y t-e #$tent Offi)e. T-e te)-ni)$l st$ff of t-e #-ilippine #$tent Offi)e )ompose% of e=perts in t-eir fiel% -$s 'y t-e iss&$n)e of t-e p$tent in C&estion $))epte% priv$te respon%entQs mo%el of 1$s '&rner $s $ %is)overy. T-ere is $ pres&mption t-$t t-e Offi)e -$s )orre)tly %etermine% t-e p$tent$'ility of t-e mo%el J@K $n% s&)- $)tion m&st not 'e interfere% .it- in t-e $'sen)e of )ompetent evi%en)e to t-e )ontr$ry. T-e r&le is settle% t-$t t-e fin%in1s of f$)t of t-e (ire)tor of #$tents, espe)i$lly .-en $ffirme% 'y t-e Co&rt of Appe$ls, $re )on)l&sive on t-is Co&rt .-en s&pporte% 'y s&'st$nti$l evi%en)e. #etitioner -$s f$ile% to s-o. )ompellin1 1ro&n%s for $ revers$l of t-e fin%in1s $n% )on)l&sions of t-e #$tent Offi)e $n% t-e Co&rt of Appe$ls. T-e $lle1e% f$il&re of t-e (ire)tor of #$tents $n% t-e Co&rt of Appe$ls to $))or% evi%enti$ry .ei1-t to t-e testimonies of t-e .itnesses of petitioner s-o.in1 $nti)ip$tion is not $ 6&stifi)$tion to 1r$nt t-e petition. #&rs&$nt to t-e reC&irement of )le$r $n% )onvin)in1 evi%en)e to overt-ro. t-e pres&mption of v$li%ity of $ p$tent, it -$s 'een -el% t-$t or$l testimony to s-o. $nti)ip$tion is open to s&spi)ion $n% if &n)orro'or$te% 'y )o1ent evi%en)e, $s .-$t o))&rre% in t-is )$se, it m$y 'e -el% ins&ffi)ient.J*K "in$lly, petitioner .o&l% .$nt t-is Co&rt to revie. $ll over $1$in t-e evi%en)e s-e presente% 'efore t-e #$tent Offi)e. S-e $r1&es t-$t )ontr$ry to t-e %e)ision of t-e #$tent Offi)e $n% t-e Co&rt of Appe$ls, t-e evi%en)e s-e presente% )le$rly proves t-$t t-e p$tente% mo%el of priv$te respon%ent is no lon1er ne. $n%, t-erefore, fr$&% $tten%e% t-e $)C&isition of p$tent 'y priv$te respon%ent. It -$s 'een -el% t-$t t-e C&estion on priority of invention is one of f$)t. Novelty $n% &tility $re li5e.ise C&estions of f$)t. T-e v$li%ity of p$tent is %e)i%e% on t-e '$sis of f$)t&$l inC&iries. 8-et-er evi%en)e presente% )omes .it-in t-e s)ope of prior $rt is $ f$)t&$l iss&e to 'e resolve% 'y t-e #$tent Offi)e. J+3K T-ere is C&estion of f$)t .-en t-e %o&'t or %ifferen)e $rises $s to t-e tr&t- or f$lse-oo% of $lle1e% f$)ts or .-en t-e C&ery ne)ess$rily invites )$li'r$tion of t-e .-ole evi%en)e )onsi%erin1 m$inly t-e )re%i'ility of .itnesses, e=isten)e $n% relev$n)e of spe)ifi) s&rro&n%in1 )ir)&mst$n)es, t-eir rel$tion to e$)- ot-er $n% to t-e .-ole $n% t-e pro'$'ilities of t-e sit&$tion. J++K Time $n% $1$in .e -$ve -el% t-$t it is not t-e f&n)tion of t-e S&preme Co&rt to $n$lyBe or .ei1- $ll over $1$in t-e evi%en)e $n% )re%i'ility of .itnesses presente% 'efore t-e lo.er tri'&n$l or offi)e. T-e S&preme Co&rt is not $ trier of f$)ts. Its 6&ris%i)tion is limite% to revie.in1 $n% revisin1 errors of l$. imp&te% to t-e lo.er )o&rt, its fin%in1s of f$)t 'ein1 )on)l&sive $n% not revie.$'le 'y t-is Co&rt. 8HERE"ORE, t-e #etition is (ENIE(. T-e (e)ision of t-e Co&rt of Appe$ls $ffirmin1 t-$t of t-e #-ilippine #$tent Offi)e is A""IRME(. Costs $1$inst petitioner. SO OR(ERE(.-it$)" 5ap$nan" $n% Hermosisima" Jr." JJ." )on)&r

CRESER #RECISION SHSTEMS, INC., petitioner" vs. COURT O" A##EA!S AN( "!ORO INTERNATIONA! COR#., respondents. MARTINEN, J.: T-is petition for revie. on certiorari $ss$ils t-e %e)isionJ+K. T-e %e)ision of t-e Co&rt of Appe$ls .$s penne% 'y /&sti)e Glori$ C. #$r$s $n% )on)&rre% in 'y /&sti)e S$lome A. Montoy$ $n% /&sti)e He)tor !. HofileP$. + of t-e Co&rt of Appe$ls %$te% Novem'er *, +**4 in C.A.2G.R. S#. No. <44;? entitle% S"loro Intern$tion$l Corp. vs. Hon. Tirso (.C Cr&B $n% Creser #re)ision System, In).T, t-e %ispositive portion of .-i)- re$%s: S8HERE"ORE, THE #ETITION IS HERE H GRANTE(. THE COM#!AINT "OR IN/UNCTION AN( (AMAGES, CIGI! CASE NO. *<2+@?0 E"ORE THE RES#ON(ENT /U(GE IS HERE H OR(ERE( (ISMISSE( AN( HIS OR(ERS THEREIN O" (ECEM ER ;*, +**< AN( MAH ++, +**4 ARE OR(ERE( SET ASI(E.T #riv$te respon%ent is $ %omesti) )orpor$tion en1$1e% in t-e m$n&f$)t&re, pro%&)tion, %istri'&tion $n% s$le of milit$ry $rm$ments, m&nitions, $irm&nitions $n% ot-er simil$r m$teri$ls. J;K On /$n&$ry ;<, +**3, priv$te respon%ent .$s 1r$nte% 'y t-e &re$& of #$tents, Tr$%em$r5s $n% Te)-nolo1y Tr$nsfer ( #TTT), $ !etters #$tent No. UM20*<@ J<K )overin1 $n $eri$l f&Be .-i)- .$s p&'lis-e% in t-e Septem'er2 O)to'er +**3, Gol. III, No. ? iss&e of t-e &re$& of #$tentQs Offi)i$l G$Bette.J4K Sometime in Novem'er +**<, priv$te respon%ent, t-ro&1- its presi%ent, Mr. Gre1ory "loro, /r., %is)overe% t-$t petitioner s&'mitte% s$mples of its p$tente% aerial f$'e to t-e Arme% "or)es of t-e #-ilippines (A"#) for testin1. He le$rne% t-$t petitioner .$s )l$imin1 t-e $fores$i% aerial f$'e $s its o.n $n% pl$nnin1 to 'i% $n% m$n&f$)t&re t-e s$me )ommer)i$lly .it-o&t li)ense or $&t-ority from priv$te respon%ent. To prote)t its ri1-t, priv$te respon%ent on (e)em'er <, +**<, sent $ letterJ?K to petitioner $%visin1 it fro its e=istin1 p$tent $n% its ri1-ts t-ere&n%er, .$rnin1 petitioner of $ possi'le )o&rt $)tion $n%>or $ppli)$tion for in6&n)tion, s-o&l% it pro)ee% .it- t-e s)-e%&le% testin1 'y t-e milit$ry on (e)em'er ,, +**<. In response to priv$te respon%entQs %em$n%, petitioner file% on (e)em'er @, +**< $ )ompl$int J0K for in6&n)tion $n% %$m$1es $risin1 from t-e $lle1e% infrin1ement 'efore t-e Re1ion$l Tri$l Co&rt of F&eBon City, r$n)- @@. T-e )ompl$int $lle1e%, $mon1 ot-ers: t-$t petitioner is t-e first, tr&e $n% $)t&$l inventor of $n $eri$l f&Be %enomin$te% $s S"&Be, #(R ,, C 4T .-i)- is %evelope% $s e$rly $s (e)em'er +*@+ &n%er t-e Self2Reli$n)e (efense #ost&re #ro1r$m (SR(#) of t-e A"#7 t-$t sometime in +*@0, petitioner 'e1$n s&pplyin1 t-e A"# .it- t-e s$i% $eri$l f&Be7 t-$t priv$te respon%entQs $eri$l f&Be is i%enti)$l in every respe)t to t-e petitionerQs f&Be7 $n% t-$t t-e only %ifferen)e 'et.een t-e t.o f&Bes $re minis)&le $n% merely )osmeti) in n$t&re. #etitioner pr$ye% t-$t $ tempor$ry restr$inin1 or%er $n%>or .rit of prelimin$ry in6&n)tion 'e iss&e% en6oinin1 priv$te respon%ent in)l&%in1 $ny $n% $ll persons $)tin1 on its 'e-$lf from m$n&f$)t&rin1, m$r5etin1 $n%>or profitin1 t-erefrom, $n%>or from performin1 $ny ot-er $)t in )onne)tion t-ere.it- or ten%in1 to pre6&%i)e $n% %eprive it of $ny ri1-ts, privile1es $n% 'enefits to .-i)- it is %&ly entitle% $s t-e first, tr&e $n% $)t&$l inventor of t-e aerial f$'e. On (e)em'er +3, +**<, t-e tri$l )o&rt iss&e% $ tempor$ry restr$inin1 or%er. T-ere$fter, -e$rin1s .ere -el% on t-e $ppli)$tion of petitioner for t-e iss&$n)e of $ .rit of prelimin$ry in6&n)tion, .it- 'ot- p$rties presentin1 t-eir evi%en)e. After t-e -e$rin1s, t-e tri$l )o&rt %ire)te% t-e p$rties to s&'mit t-eir respe)tive memor$n%$ in s&pport of t-eir positions. On (e)em'er ;,, +**<, priv$te respon%ent s&'mitte% its memor$n%&m J,K $lle1in1 t-$t petitioner -$s no )$&se of $)tion to file $ )ompl$int of infrin1ement $1$inst it sin)e it -$s no p$tent for t-e aerial f$'e .-i)- it )l$ims to -$ve invente%7 t-$t petitionerQs $v$il$'le reme%y is to file $ petition for )$n)ell$tion of p$tent 'efore t-e &re$& of #$tents7 t-$t priv$te respon%ent $s t-e p$tent -ol%er )$nnot 'e strippe% of its property ri1-t over t-e p$tente% aerial f$'e )onsistin1 of t-e e=)l&sive ri1-t to m$n&f$)t&re, &se $n% sell t-e s$me $n% t-$t it st$n%s to s&ffer irrep$r$'le %$m$1e $n% in6&ry if it is en6oine% from t-e e=er)ise of its property ri1-t over its p$tent.

On (e)em'er ;*, +**<, t-e tri$l )o&rt iss&e% $n Or%er J@K 1r$ntin1 t-e iss&$n)e of $ .rit of prelimin$ry in6&n)tion $1$inst priv$te respon%ent t-e %ispositive portion of .-i)- re$%s: S8HERE"ORE, pl$intiffQs $ppli)$tion for t-e iss&$n)e of $ .rit of prelimin$ry in6&n)tion is 1r$nte% $n%, &pon postin1 of t-e )orrespon%in1 'on% 'y pl$intiff in t-e $mo&nt of #H# ;33,333.33, let t-e .rit of prelimin$ry in6&n)tion 'e iss&e% 'y t-e 'r$n)- Cler5 of t-is Co&rt en6oinin1 t-e %efen%$nt $n% $ny $n% $ll persons $)tin1 on its 'e-$lf or 'y $n% &n%er its $&t-ority, from m$n&f$)t&rin1, m$r5etin1 $n%>or sellin1 $eri$l f&Bes i%enti)$l, to t-ose of pl$intiff, $n% from profitin1 t-erefrom, $n%>or from performin1 $ny ot-er $)t in )onne)tion t-ere.it- &ntil f&rt-er or%ers from t-is Co&rt.T #riv$te respon%ent move% for re)onsi%er$tion '&t t-is .$s %enie% 'y t-e tri$l )o&rts in its Or%er J*K of M$y ++, +**4, pertinent portions of .-i)- re$%: S"or resol&tion 'efore t-is Co&rt is t-e Motion for Re)onsi%er$tion file% 'y t-e %efen%$nt $n% t-e pl$intiffQs Opposition t-ereto. T-e Co&rt fin%s no s&ffi)ient )$&se to re)onsi%er its or%er %$te% (e)em'er ;*, +**<. (&rin1 t-e -e$rin1 for t-e iss&$n)e of t-e prelimin$ry in6&n)tion, t-e pl$intiff -$s $mply proven its entitlement to t-e relief pr$ye% for. It is &n%isp&te% t-$t t-e pl$intiff -$s %evelope% its $eri$l f&Be .$y '$)5 in +*@+ .-ile t-e %efen%$nt 'e1$n m$n&f$)t&rin1 t-e s$me only in +*@,. T-&s, it is only lo1i)$l to )on)l&%e t-$t it .$s t-e pl$intiffQs $eri$l f&Be t-$t .$s )opie% or imit$te% .-i)- 1ives t-e pl$intiff t-e ri1-t to -$ve t-e %efen%$nt en6oine% Sfrom m$n&f$)t&rin1, m$r5etin1 $n%>or sellin1 $eri$l f&Bes i%enti)$l to t-ose of t-e pl$intiff, $n% from profitin1 t-erefrom $n%>or performin1 $ny ot-er $)t in )onne)tion t-ere.it- &ntil f&rt-er or%ers from t-is Co&rt.T 8it- re1$r%s to t-e %efen%$ntQs $ssertion t-$t $n $)tion for infrin1ement m$y only 'e 'ro&1-t 'y S$nyone possessin1 ri1-t, title or interest to t-e p$tente% invention,T (Se)tion 4;, RA +0?) C&$lifie% 'y Se)tion +3, RA +0? to in)l&%e only St-e first tr&e $n% $)t&$l inventor, -is -eirs, le1$l represent$tives to $ssi1nees,T t-is )o&rt fin%s t-e fore1oin1 to 'e &nten$'le. Se). +3 merely en&mer$tes t-e persons .-o m$y -$ve $n invention p$tente% .-i)- %oes not ne)ess$rily limit to t-ese persons t-e ri1-t to instit&te $n $)tion for infrin1ement. (efen%$nt f&rt-er )onten%s t-$t t-e or%er in iss&e is %isr&ptive of t-e stat$s #$o. On t-e )ontr$ry, t-e or%er iss&e% 'y t-e Co&rt in effe)t m$int$ine% t-e stat$s #$o. T-e l$st $)t&$l , pe$)e$'le &n)onteste% st$t&s e=istin1 prior to t-is )ontroversy .$s t-e pl$intiff m$n&f$)t&rin1 $n% sellin1 its o.n $eri$l f&Bes #(R ,, C 4 .-i)- .$s or%ere% stoppe% t-ro&1- t-e %efen%$ntQs letter. 8it- iss&$n)e of t-e or%er, t-e oper$tions of t-e pl$intiff )ontin&e. !$stly, t-is )o&rt 'elieves t-$t t-e %efen%$nt .ill not s&ffer irrep$r$'le in6&ry 'y virt&e of s$i% or%er. T-e %efen%$ntQs )l$im is prim$rily -in1e% on its p$tent (!etters #$tent No. UM20*@<) t-e v$li%ity of .-i)- is 'ein1 C&estione% in t-is )$se. 8HERE"ORE, premises )onsi%ere%, t-e Motion for Re)onsi%er$tion is -ere'y %enie% for l$)5 of merit.SO OR(ERE(.T A11rieve%, priv$te respon%ent on /&ne ;,, +**4, file% $ petition for certiorari, m$n%$m&s $n% pro-i'itionJ+3K'efore respon%ent Co&rt of Appe$ls r$isin1 $s 1ro&n%s t-e follo.in1: $. #etitioner -$s no )$&se of $)tion for infrin1ement $1$inst priv$te respon%ent, t-e l$tter not -$vin1 $ny p$tent for t-e $eri$l f&Be .-i)- it )l$ims to -$ve invente% $n% %evelope% $n% $lle1e%ly infrin1e% 'y priv$te respon%ent7 '. T-e )$se 'ein1 $n $)tion for )$n)ell$tion or inv$li%$tion of priv$te respon%entQs !etters #$tent over its o.n $eri$l f&Be, t-e proper ven&e is t-e Offi)e of t-e (ire)tor of #$tents7 ). T-e tri$l )o&rt $)te% in 1r$ve $'&se of %is)retion $n% or in e=)ess of 6&ris%i)tion in fin%in1 t-$t petitioner -$s f&lly est$'lis-e% its )le$r title or ri1-t to prelimin$ry in6&n)tion7 %. T-e tri$l )o&rt $)te% in 1r$ve $'&se of %is)retion $n%>or in e=)ess of 6&ris%i)tion in 1r$ntin1 t-e prelimin$ry in6&n)tion, it 'ein1 %isr&ptive of t-e st$t&s C&o7 $n% e. T-e tri$l )o&rt $)te% in 1r$ve $'&se of %is)retion $n%>or in e=)ess of 6&ris%i)tion in 1r$ntin1 t-e prelimin$ry in6&n)tion t-ere'y %eprivin1 priv$te respon%ent of its property ri1-ts over t-e p$tente% $eri$l f&Be $n% )$&se it irrep$r$'le %$m$1es. On Novem'er *, +**4, t-e respon%ent )o&rt ren%ere% t-e no. $ss$ile% %e)ision reversin1 t-e tri$l )o&rtQs Or%er of (e)em'er ;*, +**< $n% %ismissin1 t-e )ompl$int file% 'y petitioner.

T-e motion for re)onsi%er$tion .$s $lso %enie% on /$n&$ry +,, +**?.J++K Hen)e, t-is present petition. It is petitionerQs )ontention t-$t it )$n file, &n%er Se)tion 4; of t-e #$tent !$. (R.A. +0?), $n $)tion for infrin1ement not $s $ p$tentee '&t $s $n entity in possession of $ ri1-t, title or interest in $n% to t-e p$tente% invention. It $%v$n)es t-e t-eory t-$t .-ile t-e $'sen)e of $ p$tent m$y prevent one from l$.f&lly s&in1 $not-er for infrin1ement of s$i% p$tent, s&)- $'sen)e %oes not '$r t-e first tr&e $n% $)t&$l inventor of t-e p$tente% invention from s&in1 $not-er .-o .$s 1r$nte% $ p$tent in $ s&it for %e)l$r$tory or in6&n)tive relief re)o1niBe% &n%er Ameri)$n p$tent l$.s. T-is reme%y, petitioner points o&t, m$y 'e li5ene% to $ )ivil $)tion for infrin1ement &n%er Se)tion 4; of t-e #-ilippine #$tent !$.. 8e fin% t-e $'ove $r1&ments &nten$'le. Se)tion 4; of R.A. +0?, ot-er.ise 5no.n $s t-e #$tent !$., e=pli)itly provi%es: SECTION. 4;. Civil action for infrin)ement. R Any p$tentee, or $nyone possessin1 $ny ri1-t, title or interest in $n% to t-e p$tente% invention, .-ose ri1-ts -$ve 'een infrin1e%, m$y 'rin1 $ )ivil $)tion 'efore t-e proper Co&rt of "irst Inst$n)e (no. Re1ion$l Tri$l )o&rt), to re)over from t-e infrin1er %$m$1es s&st$ine% 'y re$son of t-e infrin1ement $n% to se)&re $n in6&n)tion for t-e prote)tion of -is ri1-t. = = = Un%er t-e $foreC&ote% l$., only t-e p$tentee or -is s&))essors2in2interest m$y file $n $)tion for infrin1ement. T-e p-r$se San(one possessin) an( ri)&t" title or interest in and to t&e patented inventionT &pon .-i)- petitioner m$int$ins its present s&it, refers only to t-e p$tenteeQs s&))essors2in2interest, $ssi1nees or 1r$ntees sin)e $)tions for infrin1ement of p$tent m$y 'e 'ro&1-t in t-e n$me of t-e person or persons intereste%, .-et-er $s p$tentee, $ssi1nees or 1r$ntees, of t-e e=)l&sive ri1-t.J+;K Moreover, t-ere )$n 'e no infrin1ement of $ p$tent &ntil $ p$tent -$s 'een iss&e%, sin)e .-$tever ri1-t one -$s to t-e invention )overe% 'y t-e p$tent $rises $lone from t-e 1r$nt of p$tent. J+<K In s-ort, $ person or entity .-o -$s not 'een 1r$nte% letters p$tent over $n invention $n% -$s not $)C&ire% $ny ri1-t or title t-ereto eit-er $s $ssi1nee or $s li)ensee, -$s no )$&se of $)tion for infrin1ement 'e)$&se t-e ri1-t to m$int$in $n infrin1ement s&it %epen%s on t-e e=isten)e of t-e p$tent.J+4K #etitioner $%mits it -$s no p$tent over its aerial f$'e. T-erefore, it -$s no le1$l '$sis or )$&se of $)tion to instit&te t-e petition for in6&n)tion $n% %$m$1es $risin1 from t-e $lle1e% infrin1ement 'y priv$te respon%ent. 8-ile petitioner )l$ims to 'e t-e first inventor of t-e aerial f$'e, still it -$s no ri1-t of property over t-e s$me &pon .-i)- it )$n m$int$in $ s&it &nless it o't$ins $ p$tent t-erefor. Un%er Ameri)$n 6&rispr&%en)e, $n% inventor -$s no )ommon2l$. ri1-t to $ monopoly of -is invention. He -$s t-e ri1-t to m$5e, &se $n% ven% -is o.n invention, '&t if -e vol&nt$rily %is)loses it, s&)- $s 'y offerin1 it for s$le, t-e .orl% is free to )opy $n% &se it .it- imp&nity. A p$tent, -o.ever, 1ives t-e inventor t-e ri1-t to e=)l&%e $ll ot-ers. As $ p$tentee, -e -$s t-e e=)l&sive ri1-t of m$5in1, &sin1 or sellin1 t-e invention. J+?K "&rt-er, t-e reme%y of %e)l$r$tory 6&%1ment or in6&n)tive s&it on p$tent inv$li%ity relie% &pon 'y petitioner )$nnot 'e li5ene% to t-e )ivil $)tion for infrin1ement &n%er Se)tion 4; of t-e #$tent !$.. T-e re$son for t-is is t-$t t-e s$i% reme%y is $v$il$'le only to t-e p$tent -ol%er or -is s&))essors2in2interest. T-&s, $nyone .-o -$s no p$tent over $n invention '&t )l$ims to -$ve $ ri1-t or interest t-ereto )$n not file $n $)tion for %e)l$r$tory 6&%1ment or in6&n)tive s&it .-i)- is not re)o1niBe% in t-is 6&ris%i)tion. S$i% person, -o.ever, is not left .it-o&t $ny reme%y. He )$n, &n%er Se)tion ;@ of t-e $forementione% l$., file $ petition for )$n)ell$tion of t-e p$tent .it-in t-ree (<) ye$rs from t-e p&'li)$tion of s$i% p$tent .it- t-e (ire)tor of #$tents $n% r$ise $s 1ro&n% t-erefor t-$t t-e person to .-om t-e p$tent .$s iss&e% is not t-e tr&e $n% $)t&$l inventor. Hen)e, petitionerQs reme%y is not to file $n $)tion for in6&n)tion or infrin1ement '&t to file $ petition for )$n)ell$tion of priv$te respon%entQ p$tent. #etitioner -o.ever f$ile% to %o so. As s&)-, it )$n not no. $ss$il or imp&1n t-e v$li%ity of t-e priv$te respon%entQs letters p$tent 'y )l$imin1 t-$t it is t-e tr&e $n% $)t&$l inventor of t-e aerial f$'e. T-&s, $s )orre)tly r&le% 'y t-e respon%ent Co&rt of Appe$ls in its $ss$ile% %e)ision: S since t&e petitioner 1private respondent &erein2 is t&e patentee of t&e disp$ted invention embraced b( letters of patent U, No. 6789 iss$ed to it on

Jan$ar( :8" ;77< b( t&e +$rea$ of Patents" it &as in its favor not onl( t&e pres$mption of validit( of its patent" b$t t&at of a le)al and fact$al first and tr$e inventor of t&e invention.T In t-e )$se of A1&$s vs. (e !eon,J+0K .e st$te% t-$t: ST-e v$li%ity of t-e p$tent iss&e% 'y t-e #-ilippine #$tent Offi)e in f$vor of t-e priv$te respon%ent $n% t-e C&estion over t-e investments, novelty $n% &sef&lness of t-e improve% pro)ess t-erein spe)ifie% $n% %es)ri'e% $re m$tters .-i)- $re 'etter %etermine% 'y t-e #-ilippines p$tent Offi)e, )ompose% of e=perts in t-eir fiel%, -$ve, 'y t-e iss&$n)e of t-e p$tent in C&estion, $))epte% t-e t-inness of t-e priv$te respon%entQs ne. tiles $s $ %is)overy. T-ere is $ pres&mption t-$t t-e #-ilippine #$tent Offi)e -$s )orre)tly %etermine% t-e p$tent$'ility of t-e improvement 'y t-e priv$te respon%ent of t-e pro)ess in C&estion.T In fine, in t-e $'sen)e of error or $'&se of po.er or l$)5 or 6&ris%i)tion or 1r$ve $'&se of %is)retion, .e s&st$in t-e $ss$ile% %e)ision of t-e respon%ent Co&rt of Appe$l. 8HERE"ORE, t-e %e)ision of t-e Co&rt of Appe$ls is -ere'y A""IRME(. No prono&n)ement $s to )osts. SO OR(ERE(. e)alado" 1C&airman2" ,elo" P$no" $n% ,endo'a" JJ." )on)&r.

)omp&lsory li)ense to priv$te respon%ent .o&l% not promote p&'li) s$fety $n% t-$t t-e l$tter .$s only motiv$te% 'y pe)&ni$ry 1$in.J0K After 'ot- p$rties .ere -e$r%, t-e #TTT ren%ere% $ %e)ision %ire)tin1 t-e iss&$n)e of $ )omp&lsory li)ense to priv$te respon%ent to &se, m$n&f$)t&re $n% sell in t-e #-ilippines its o.n 'r$n% of p-$rm$)e&ti)$l pro%&)ts )ont$inin1 Cimetidine $n% or%ere% t-e p$yment 'y priv$te respon%ent to petitioner of roy$lties $t t-e r$te of ;.?M of net s$les in #-ilippine )&rren)y.J,K #etitioner t-ere$fter file% .it- t-e Co&rt of Appe$ls $ petition for revie. of t-e %e)ision of t-e #TTT, r$isin1 t-e follo.in1 $r1&ments: (+) t-e #TTTQs %e)ision is viol$tive of t-e #$ris Convention for t-e #rote)tion of In%&stri$l #roperty7 (;) s$i% %e)ision is $n inv$li% e=er)ise of poli)e po.er7 (<) t-e r$te of roy$lties p$y$'le to petitioner $s fi=e% 'y t-e #TTT .$s ren%ere% .it-o&t f$)t&$l '$sis $n% $mo&nts to $n e=propri$tion of priv$te property .it-o&t 6&st )ompens$tion7 (4) t-e petition for )omp&lsory li)ense s-o&l% -$ve 'een %ismisse% 'y t-e #TTT for f$il&re to prove t-e 6&ris%i)tion$l reC&irement of p&'li)$tion.J@K On /$n&$ry ;,, +**?, t-e Co&rt of Appe$ls prom&l1$te% its (e)ision, t-e %ispositive portion of .-i)- st$tes: 8HERE"ORE, t-e petition is (ENIE(, $n% t-e %e)ision of t-e &re$& of #$tents, Tr$%em$r5s $n% Te)-nolo1y Tr$nsfer is -ere'y A""IRME(, .it- )osts $1$inst t-e #etitioner.SO OR(ERE(. J*K In $ffirmin1 t-e %e)ision of t-e #TTT, t-e $ppell$te )o&rt -el% t-$t t-e 1r$nt of $ )omp&lsory li)ense to priv$te respon%ent for t-e m$n&f$)t&re $n% &se of Cimetidine is in $))or% .it- t-e #$tent !$. sin)e t-e p$tente% pro%&)t is me%i)in$l in n$t&re, $n% t-erefore ne)ess$ry for t-e promotion of p&'li) -e$lt- $n% s$fety. J+3K It e=pl$ine% f&rt-er t-$t t-e provisions of t-e #$tent !$. permittin1 t-e 1r$nt of $ )omp&lsory li)ense $re inten%e% not only to 1ive $ )-$n)e to ot-ers to s&pply t-e p&'li) .it- t-e C&$ntity of t-e p$tente% $rti)le '&t espe)i$lly to prevent t-e '&il%in1 &p of p$tent monopolies.J++K Neit-er %i% t-e $ppell$te )o&rt fin% t-e roy$lty r$te of ;.?M of net s$les fi=e% 'y t-e #TTT &nre$son$'le, )onsi%erin1 t-$t .-$t .$s 1r$nte% &n%er t-e )omp&lsory li)ense is only t-e ri1-t to m$n&f$)t&re Cimetidine, .it-o&t $ny te)-ni)$l $ssist$n)e from petitioner, $n% roy$lty r$tes i%enti)$l to t-$t fi=e% 'y t-e #TTT -$ve 'een pres)ri'e% for t-e 1r$nt of )omp&lsory li)ense in $ 1oo% n&m'er of p$tent )$ses. J+;K T-e Co&rt of Appe$ls $lso r&le% t-$t )ontr$ry to petitionerQs )l$im, priv$te respon%ent )omplie% .it- t-e reC&irement of p&'li)$tion &n%er t-e #$tent !$. $n% -$% s&'mitte% proof of s&)- )ompli$n)e.J+<K Not s$tisfie% .it- t-e $ppell$te )o&rtQs %e)ision, petitioner file% $ motion for re)onsi%er$tion t-ereof $s .ell $s $ motion for t-e iss&$n)e of $ tempor$ry restr$inin1 or%er $1$inst priv$te respon%entQs sister )omp$ny, Montre$l #-$rm$)e&ti)$l, In). to refr$in from m$r5etin1 $ pro%&)t simil$r to Cimetidine, '&t 'ot- motions .ere %enie% 'y t-e Co&rt of Appe$ls in its Resol&tion of /&ly ;?, +**?.J+4K #etitioner t-&s file% t-e present petition on Septem'er +?, +**?, .it- t-e follo.in1 $ssi1nment of errors: I. T-e respon%ent Co&rt erre% in &p-ol%in1 t-e v$li%ity of t-e %e)ision of p&'li) respon%ent #TTT .-i)is $n $r'itr$ry e=er)ise of poli)e po.er $n% is viol$tive of intern$tion$l l$.. II. T-e respon%ent Co&rt erre% in -ol%in1 t-$t )omp&lsory li)ensin1 .ill not )re$te $ )onf&sion t-$t t-e p$tente% pro%&)t is t-e 'r$in)-il% of priv$te respon%ent ($nle= $n% not of petitioner. III.Ass&min1 t-$t t-e 1r$nt of )omp&lsory li)ense is in or%er, t-e respon%ent Co&rt still erre% in -ol%in1 t-$t t-e #TTT %e)ision fi=in1 t-e roy$lty $t ;.?M of t-e net .-oles$le pri)e in peso %oes not $mo&nt to e=propri$tion of priv$te property .it-o&t 6&st )ompens$tion. IG.T-e respon%ent Co&rt erre% in fin%in1 t-$t t-e 6&ris%i)tion$l reC&irement of p&'li)$tion in $ ne.sp$per of 1ener$l )ir)&l$tion for t-ree (<) )onse)&tive .ee5s -$s 'een )omplie% .it- 'y priv$te respon%ent ($nle=.J+?K

SMITH D!INE I "RENCH !A ORATORIES, !T(. plaintiff=appellee, vs. COURT O" A##EA!S $n% (AN!EE RESEARCH !A ORATORIES, INC., defendant=appellant. (ECISION DA#UNAN, J.: T-is petition for revie. on certiorari $ss$ils t-e (e)ision %$te% /$n&$ry ;,, +**? of t-e Co&rt of Appe$ls in CA2 G.R. S# No. <<,,3 J+K .-i)- $ffirme% t-e %e)ision of t-e &re$& of #$tents, Tr$%em$r5s $n% Te)-nolo1y Tr$nsfer ( #TTT) 1r$ntin1 $ )omp&lsory li)ense to priv$te respon%ent ($nle= Rese$r)- !$'or$tories for t-e &se of t-e p-$rm$)e&ti)$l pro%&)t Cimetidine. !i5e.ise $ss$ile% is t-e /&ly ;?, +**? Resol&tion of t-e Co&rt of Appe$ls %enyin1 t-e motion for re)onsi%er$tion file% 'y petitioner Smit- Dline $n% "ren)- !$'or$tories, !t%. #etitioner is t-e $ssi1nee of !etters #$tent No. +;;3, )overin1 t-e p-$rm$)e&ti)$l pro%&)t Cimetidine, .-i)rel$tes to %eriv$tives of -etero)y)li)t-io or lo.er $l5o=y or $mino lo.er $l5yl t-io&re$, &re$s or 1&$n$%ines. S$i% p$tent .$s iss&e% 'y t-e #TTT to Gr$-$m /o-n (&r$nt, /o-n Collin Emmett $n% Ro'in Genellin on Novem'er ;*, +*,@. J;K On A&1&st ;+, +*@*, priv$te respon%ent file% .it- t-e #TTT $ petition for )omp&lsory li)ense to m$n&f$)t&re $n% pro%&)e its o.n 'r$n% of me%i)ines &sin1 Cimetidine. #riv$te respon%ent invo5e% Se)tion <4 (+) (e) of Rep&'li) A)t No. +0?,J<K (t-e #$tent !$.) t-e l$. t-en 1overnin1 p$tents, .-i)- st$tes t-$t $n $ppli)$tion for t-e 1r$nt of $ )omp&lsory li)ense &n%er $ p$rti)&l$r p$tent m$y 'e file% .it- t-e #TTT $t $ny time $fter t-e l$pse of t.o (;) ye$rs from t-e %$te of 1r$nt of s&)- p$tent, if t-e p$tente% invention or $rti)le rel$tes to foo% or me%i)ine, or m$n&f$)t&re% s&'st$n)es .-i)- )$n 'e &se% $s foo% or me%i)ine, or is ne)ess$ry for p&'li) -e$lt- or p&'li) s$fety. J4K T-e petition for )omp&lsory li)ense st$te% t-$t Cimetidine is &sef&l $s $n $nti-ist$mine $n% in t-e tre$tment of &l)ers, $n% t-$t priv$te respon%ent is )$p$'le of &sin1 t-e p$tente% pro%&)t in t-e m$n&f$)t&re of $ &sef&l pro%&)t.J?K #etitioner oppose% t-e petition for )omp&lsory li)ense, $r1&in1 t-$t t-e priv$te respon%ent -$% no )$&se of $)tion $n% f$ile% to $lle1e -o. it inten%e% to .or5 t-e p$tente% pro%&)t. #etitioner f&rt-er st$te% t-$t its m$n&f$)t&re, &se $n% s$les of Cimetidine s$tisfie% t-e nee%s of t-e #-ilippine m$r5et, -en)e, t-ere .$s no nee% to 1r$nt $ )omp&lsory li)ense to priv$te respon%ent to m$n&f$)t&re, &se $n% sell t-e s$me. "in$lly, petitioner $lso )l$ime% t-$t t-e 1r$nt of $

8-ile petitioner )on)e%es t-$t t-e St$te in t-e e=er)ise of poli)e po.er m$y re1&l$te t-e m$n&f$)t&re $n% &se of me%i)ines t-ro&1- t-e en$)tment $n% implement$tion of pertinent l$.s, it st$tes t-$t s&)- e=er)ise is v$li% only if t-e me$ns employe% $re re$son$'ly ne)ess$ry for t-e $))omplis-ment of t-e p&rpose $n% if not &n%&ly oppressive. J+0K A))or%in1 to petitioner, t-e 1r$nt of $ )omp&lsory li)ense to priv$te respon%ent is $n inv$li% e=er)ise of poli)e po.er sin)e it .$s not s-o.n t-$t t-ere is $n over.-elmin1 p&'li) ne)essity for s&)- 1r$nt, )onsi%erin1 t-$t petitioner is $'le to provi%e $n $%eC&$te s&pply ofCimetidine to s$tisfy t-e nee%s of t-e #-ilippine m$r5et. #etitioner $lso )l$ims t-$t t-e 1r$nt of $ )omp&lsory li)ense to priv$te respon%ent &n6&stly %eprives it of $ re$son$'le ret&rn on its investment. J+,K It $r1&es f&rt-er t-$t t-e provisions of t-e #$tent !$. on )omp&lsory li)ensin1 )ontr$vene t-e Convention of #$ris for t-e #rote)tion of In%&stri$l #ropertyJ+@K (#$ris Convention), .-i)- $lle1e%ly permits t-e 1r$ntin1 of $ )omp&lsory li)ense over $ p$tente% pro%&)t only to prevent $'&ses .-i)- mi1-t res&lt from t-e e=er)ise of t-e e=)l&sive ri1-ts )onferre% 'y t-e p$tent,J+*K or on t-e 1ro&n% of f$il&re to .or5 or ins&ffi)ient .or5in1 of t-e p$tente% pro%&)t, .it-in fo&r ye$rs from t-e %$te of filin1 of t-e p$tent $ppli)$tion or t-ree ye$rs from t-e %$te of 1r$nt of t-e p$tent, .-i)-ever e=pires l$st. J;3K #etitioner opines t-$t t-e in)l&sion of 1ro&n%s for t-e 1r$nt of $ )omp&lsory li)ense in Se)tion <4 of t-e #$tent !$. ot-er t-$n t-ose provi%e% &n%er t-e #$ris Convention )onstit&tes $ viol$tion of t-e #-ilippinesQ o'li1$tion to $%-ere to t-e provisions of s$i% tre$ty.J;+K It is $lso )onten%e% 'y petitioner t-$t t-e 1r$nt of $ )omp&lsory li)ense to priv$te respon%ent .ill $llo. t-e l$tter to li'er$lly m$n&f$)t&re $n% sell me%i)in$l pro%&)ts )ont$inin1 Cimetidine .it-o&t even e=ten%in1 to petitioner %&e re)o1nition for pioneerin1 t-e %evelopment $n% .orl%.i%e $))ept$n)e of s$i% invention, $n% .ill &nre$son$'ly %il&te petitionerQs ri1-t over t-e p$tent.J;;K #etitioner li5e.ise $ssever$tes t-$t t-e r$te of roy$lty fi=e% 'y t-e #TTT $t ;.?M of net s$les is 1rossly in$%eC&$te, t$5in1 into )onsi%er$tion its -&1e investments of money, time $n% ot-er reso&r)es in t-e rese$r)- $n% %evelopment, $s .ell $s m$r5etin1 of Cimetidine. It is f&rt-er $lle1e% t-$t s&)- r$te -$s no f$)t&$l '$sis sin)e t-e $ppell$te )o&rt $n% t-e #TTT relie% solely on $n$lo1o&s )$ses $n% %i% not e=pl$in -o. s&)- r$te .$s $rrive% $t.J;<K !$stly, petitioner )l$ims t-$t t-e $ppell$te )o&rt erre% in r&lin1 t-$t priv$te respon%ent -$% )omplie% .it- t-e reC&irement of p&'li)$tion of t-e noti)e of t-e filin1 of t-e petition for )omp&lsory li)ense 'e)$&se priv$te respon%ent f$ile% to form$lly offer in evi%en)e )opies of t-e noti)e of filin1 of t-e petition $n% noti)e of t-e %$te of -e$rin1 t-ereof $s p&'lis-e% $n% t-e $ffi%$vits of p&'li)$tion t-ereof. T-&s, it s$ys, t-e #TTT %i% not properly $)C&ire 6&ris%i)tion over t-e petition for )omp&lsory li)ense.J;4K In its Comment to t-e #etition, priv$te respon%ent $%opte% t-e re$sonin1 of t-e Co&rt of Appe$ls in t-e $ss$ile% %e)ision $n% pr$ye% t-$t t-e petition 'e %enie% for l$)5 of merit.J;?K T-e petition -$s no merit. T-e Co&rt of Appe$ls %i% not err in $ffirmin1 t-e v$li%ity of t-e 1r$nt 'y t-e #TTT of $ )omp&lsory li)ense to priv$te respon%ent for t-e &se, m$n&f$)t&re $n% s$le of Cimetidine. T-e s$i% 1r$nt is in $))or% .it- Se)tion <4 of t-e #$tent !$. .-i)- provi%es: >ro$nds for Comp$lsor( Licensin).?(+) Any person m$y $pply to t-e (ire)tor for t-e 1r$nt of $ li)ense &n%er $ p$rti)&l$r p$tent $t $ny time $fter t-e e=pir$tion of t.o ye$rs from t-e %$te of t-e 1r$nt of t-e p$tent, &n%er $ny of t-e follo.in1 )ir)&mst$n)es: ($) If t-e p$tente% invention is not 'ein1 .or5e% .it-in t-e #-ilippines on $ )ommer)i$l s)$le, $lt-o&1- )$p$'le of 'ein1 so .or5e%, .it-o&t s$tisf$)tory re$son7 (') If t-e %em$n% of t-e p$tente% $rti)le in t-e #-ilippines is not 'ein1 met to $n $%eC&$te e=tent $n% on re$son$'le terms7

()) If, 'y re$son of ref&s$l of t-e p$tentee to 1r$nt $ li)ense or li)enses on re$son$'le terms, or 'y re$son of t-e )on%itions $tt$)-e% 'y t-e p$tentee to li)ensee or to t-e p&r)-$se, le$se or &se of t-e p$tente% $rti)le or .or5in1 of t-e p$tente% pro)ess or m$)-ine for pro%&)tion, t-e est$'lis-ment of $ny ne. tr$%e or in%&stry in t-e #-ilippines is prevente%, or t-e tr$%e or in%&stry t-erein is &n%&ly restr$ine%7 (%) If t-e .or5in1 of t-e invention .it-in t-e )o&ntry is 'ein1 prevente% or -in%ere% 'y t-e import$tion of t-e p$tente% $rti)le7 (e) If t-e p$tente% invention or $rti)le rel$tes to foo% or me%i)ine or m$n&f$)t&re% s&'st$n)es .-i)- )$n 'e &se% $s foo% or me%i)ine, or is ne)ess$ry for p&'li) -e$lt- or p&'li) s$fety. (;) In $ny of t-e $'ove )$ses, $ )omp&lsory li)ense s-$ll 'e 1r$nte% to t-e petitioner provi%e% t-$t -e -$s prove% -is )$p$'ility to .or5 t-e p$tente% pro%&)t or to m$5e &se of t-e p$tente% pro%&)t in t-e m$n&f$)t&re of $ &sef&l pro%&)t, or to employ t-e p$tente% pro)ess. (<) T-e term S.or5e%T or S.or5in1T $s &se% in t-is se)tion me$ns t-e m$n&f$)t&re $n% s$le of t-e p$tente% $rti)le, of p$tente% m$)-ine, or t-e $ppli)$tion of t-e p$tente% pro)ess for pro%&)tion, in or 'y me$ns of $ %efinite $n% s&'st$nti$l est$'lis-ment or or1$niB$tion in t-e #-ilippines $n% on $ s)$le .-i)- is re$son$'le $n% $%eC&$te &n%er t-e )ir)&mst$n)es. Import$tion s-$ll not )onstit&te S.or5in1T. (Emp-$sis s&pplie%.) T-e 1r$nt of t-e )omp&lsory li)ense s$tisfies t-e reC&irements of t-e fore1oin1 provision. More t-$n ten ye$rs -$ve p$sse% sin)e t-e p$tent for Cimetidine .$s iss&e% to petitioner $n% its pre%e)essors2in2interest, $n% t-e )omp&lsory li)ense $pplie% for 'y priv$te respon%ent is for t-e &se, m$n&f$)t&re $n% s$le of $ me%i)in$l pro%&)t. "&rt-ermore, 'ot- t-e $ppell$te )o&rt $n% t-e #TTT fo&n% t-$t priv$te respon%ent -$% t-e )$p$'ility to .or5 Cimetidine or to m$5e &se t-ereof in t-e m$n&f$)t&re of $ &sef&l pro%&)t. #etitionerQs )ontention t-$t Se)tion <4 of t-e #$tent !$. )ontr$venes t-e #$ris Convention 'e)$&se t-e former provi%es for 1ro&n%s for t-e 1r$nt of $ )omp&lsory li)ense in $%%ition to t-ose fo&n% in t-e l$tter, is li5e.ise in)orre)t. Arti)le ?, Se)tion A(;) of t-e #$ris Convention st$tes: E$)- )o&ntry of t-e &nion s-$ll -$ve t-e ri1-t to t$5e le1isl$tive me$s&res provi%in1 for t-e 1r$nt of )omp&lsory li)enses to prevent t-e $'&ses .-i)- mi1-t res&lt from t-e e=er)ise of t-e e=)l&sive ri1-ts )onferre% 'y t-e p$tent, for e=$mple, f$il&re to .or5.J;0K T-is iss&e -$s $lre$%y 'een resolve% 'y t-is Co&rt in t-e )$se of Smit- Dline I "ren)- !$'or$tories, !t%. vs. Co&rt of Appe$ls"J;,K .-ere petitioner -erein C&estione% t-e #TTTQs 1r$nt of $ )omp&lsory li)ense to (o)tors #-$rm$)e&ti)$ls, In). $lso for t-e m$n&f$)t&re, &se $n% s$le of Cimetidine. 8e fo&n% no in)onsisten)y 'et.een Se)tion <4 $n% t-e #$ris Convention $n% -el% t-$t: It is t-&s )le$r t-$t Se)tion A(;) of Arti)le ? Jof t-e #$ris ConventionK &neC&ivo)$lly $n% e=pli)itly respe)ts t-e ri1-t of mem'er )o&ntries to $%opt le1isl$tive me$s&res to provi%e for t-e 1r$nt of )omp&lsory li)enses to prevent $'&ses .-i)mi1-t res&lt from t-e e=er)ise of t-e e=)l&sive ri1-ts )onferre% 'y t-e p$tent. An e=$mple provi%e% of possi'le $'&ses is Sf$il&re to .or57T -o.ever, $s s&)-, is merely s&pplie% 'y .$y of $n e=$mple, it is pl$in t-$t t-e tre$ty %oes not pre)l&%e t-e in)l&sion of ot-er forms of )$te1ories of $'&ses. Se)tion <4 of R.A. No. +0?, even if t-e A)t .$s en$)te% prior to t-e #-ilippinesQ $%-esion to t-e Convention, fits .ell .it-in t-e $foreC&ote% provisions of Arti)le ? of t-e #$ris Convention. In t-e e=pl$n$tory note of ill No. ++?0 .-i)event&$lly 'e)$me R.A. No. +0?, t-e le1isl$tive intent in t-e 1r$nt of $ )omp&lsory li)ense .$s not only to $ffor% ot-ers

$n opport&nity to provi%e t-e p&'li) .it- t-e C&$ntity of t-e p$tente% pro%&)t, '&t $lso to prevent t-e 1ro.t- of monopolies JCon1ression$l Re)or%, Ho&se of Represent$tives, +; M$y *?,, **@K. Cert$inly, t-e 1ro.t- of monopolies .$s $mon1 t-e $'&ses .-i)- Se)tion A, Arti)le ? of t-e Convention fores$., $n% .-i)- o&r Con1ress li5e.ise .is-e% to prevent in en$)tin1 R.A. No. +0?.J;@K (Emp-$sis s&pplie%.) Neit-er %oes t-e Co&rt $1ree .it- petitioner t-$t t-e 1r$nt of t-e )omp&lsory li)ense to priv$te respon%ent .$s erroneo&s 'e)$&se t-e s$me .o&l% le$% t-e p&'li) to t-in5 t-$t t-e Cimetidine is t-e invention of priv$te respon%ent $n% not of petitioner. S&)- fe$rs $re &nfo&n%e% sin)e, $s t-e $ppell$te )o&rt pointe% o&t in t-e $ss$ile% %e)ision, 'y t-e 1r$nt of t-e )omp&lsory li)ense, priv$te respon%ent $s li)ensee e=pli)itly $)5no.le%1es t-$t petitioner is t-e so&r)e of t-e p$tente% pro%&)t Cimetidine.J;*K Even $ss&min1 ar)$endo t-$t s&)- )onf&sion m$y in%ee% o))&r, t-e %is$%v$nt$1e is f$r o&t.ei1-e% 'y t-e 'enefits res&ltin1 from t-e 1r$nt of t-e )omp&lsory li)ense, s&)- $s $n in)re$se% s&pply of p-$rm$)e&ti)$l pro%&)ts )ont$inin1 Cimetidine, $n% t-e )onseC&ent re%&)tion in t-e pri)es t-ereof.J<3K T-ere is li5e.ise no '$sis for t-e $lle1$tion t-$t t-e 1r$nt of $ )omp&lsory li)ense to priv$te respon%ent res&lts in t-e %epriv$tion of petitionerQs property .it-o&t 6&st )ompens$tion. It m&st 'e pointe% o&t t-$t $s o.ner of !etters #$tent No. +;;3,, petitioner -$% $lre$%y en6oye% e=)l&sive ri1-ts to m$n&f$)t&re, &se $n% sell Cimetidine for $t le$st t.o ye$rs from its 1r$nt in Novem'er, +*,@. Even if ot-er entities li5e priv$te respon%ent $re s&'seC&ently $llo.e% to m$n&f$)t&re, &se $n% sell t-e p$tente% invention 'y virt&e of $ )omp&lsory li)ense, petitioner $s o.ner of t-e p$tent .o&l% still re)eive rem&ner$tion for t-e &se of s&)- pro%&)t in t-e form of roy$lties. Anent t-e per)eive% in$%eC&$)y of t-e roy$lty $.$r%e% to petitioner, t-e Co&rt of Appe$ls )orre)tly -el% t-$t t-e r$te of ;.?M of net .-oles$le pri)e fi=e% 'y t-e (ire)tor of t-e #TTT is in $))or% .it- t-e #$tent !$.. S$i% l$. provi%es: Se). <?. >rant of License.?(+) If t-e (ire)tor fin%s t-$t $ )$se for t-e 1r$nt of $ li)ense &n%er Se)tion <4 -ereof -$s 'een m$%e o&t, -e s-$ll, .it-in one -&n%re% ei1-ty %$ys from t-e %$te t-e petition .$s file%, or%er t-e 1r$nt of $n $ppropri$te li)ense. T-e or%er s-$ll st$te t-e terms $n% )on%itions of t-e li)ense .-i)- -e -imself m&st fi= in %ef$&lt of $n $1reement on t-e m$tter m$nifeste% or s&'mitte% 'y t-e p$rties %&rin1 t-e -e$rin1. = = =Se)tion <?2 . 0erms and Conditions of Comp$lsor( License. @ (+) A )omp&lsory li)ense s-$ll 'e non2e=)l&sive, '&t t-is s-$ll 'e .it-o&t pre6&%i)e to t-e li)enseeQs ri1-t to oppose $n $ppli)$tion for s&)- $ ne. li)ense. (;) T-e terms $n% )on%itions of $ )omp&lsory li)ense, fi=e% in $))or%$n)e .it- Se)tion <?, m$y )ont$in o'li1$tions $n% restri)tions 'ot- for t-e li)ensee $n% for t-e re1istere% o.ner of t-e p$tent. (<) A )omp&lsory li)ense s-$ll only 'e 1r$nte% s&'6e)t to t-e p$yment of $%eC&$te roy$lties )ommens&r$te .it- t-e e=tent to .-i)- t-e invention is .or5e%. Ho.ever, roy$lty p$yments s-$ll not e=)ee% five per)ent (?M) of t-e net .-oles$le pri)e ($s %efine% in Se)tion <<2A) of t-e pro%&)ts m$n&f$)t&re% &n%er t-e li)ense. If t-e pro%&)t, s&'st$n)e, or pro)ess s&'6e)t of t-e )omp&lsory li)ense is involve% in $n in%&stri$l pro6e)t $pprove% 'y t-e o$r% of Investments, t-e roy$lty p$y$'le to t-e p$tentee or p$tentees s-$ll not e=)ee% t-ree per)ent (<M) of t-e net .-oles$le pri)e ($s %efine% in Se)tion <<2A) of t-e p$tente% )ommo%ity>$n% or )ommo%ity m$n&f$)t&re% &n%er t-e p$tente% pro)ess7 t-e s$me r$te of roy$lty s-$ll 'e p$i% .-enever t.o or more p$tents $re involve%7 .-i)- roy$lty s-$ll 'e %istri'&te% to t-e p$tentees in r$tes proportion$l to t-e e=tent of )ommer)i$l &se 'y t-e li)ensee 1ivin1 preferenti$l v$l&es to t-e -ol%er of t-e ol%est s&'sistin1 pro%&)t p$tent. = = =Un%er t-e $foreC&ote% provisions, in t-e $'sen)e of $ny $1reement 'et.een t-e p$rties .it- respe)t to $ )omp&lsory li)ense, t-e (ire)tor of t-e #TTT m$y fi= t-e terms t-ereof, in)l&%in1 t-e r$te of t-e roy$lty p$y$'le to t-e li)ensor. T-e l$. e=pli)itly provi%es t-$t t-e r$te of roy$lty s-$ll not e=)ee% five per)ent (?M) of t-e net .-oles$le pri)e.

T-e Co&rt $1rees .it- t-e $ppell$te )o&rtQs r&lin1 t-$t t-e r$te of roy$lty p$yments fi=e% 'y t-e (ire)tor of t-e #TTT is re$son$'le. T-e $ppell$te )o&rt, )itin1 Price vs. United Laboratories"J<+K r&le% $s s&)-, )onsi%erin1 t-$t t-e )omp&lsory li)ense $.$r%e% to priv$te respon%ent )onsists only of t-e '$re ri1-t to &se t-e p$tente% invention in t-e m$n&f$)t&re of $not-er pro%&)t, .it-o&t $ny te)-ni)$l $ssist$n)e from t-e li)ensor. J<;K "&rt-ermore, t-is Co&rt -$% e$rlier note% in t-e Price )$se t-$t i%enti)$l roy$lty r$tes -$ve 'een pres)ri'e% 'y t-e (ire)tor of t-e #TTT in n&mero&s p$tent )$ses.J<<K T-ere .$s t-&s no error on t-e p$rt of t-e Co&rt of Appe$ls in $ffirmin1 t-e roy$lty r$te fi=e% 'y t-e (ire)tor of t-e #TTT, sin)e it .$s not s-o.n t-$t t-e l$tter erre% or $'&se% -is %is)retion in pres)ri'in1 s$i% r$te. T-e r&le is t-$t f$)t&$l fin%in1s of $%ministr$tive 'o%ies, .-i)- $re )onsi%ere% $s e=perts in t-eir respe)tive fiel%s, $re $))or%e% not only respe)t '&t even fin$lity if t-e s$me $re s&pporte% 'y s&'st$nti$l evi%en)e. J<4K "in$lly, $s to t-e $lle1e% l$)5 of 6&ris%i)tion of t-e #TTT over t-e petition file% 'y priv$te respon%ent for f$il&re to )omply .it- t-e p&'li)$tion reC&irement &n%er Se)tion <?2" of R.A. No. +0?, t-e Co&rt -ol%s t-$t petitioner is estoppe% from C&estionin1 t-e s$me sin)e it %i% not r$ise t-e iss&e of l$)5 of 6&ris%i)tion $t t-e e$rliest possi'le opport&nity, i.e., %&rin1 t-e -e$rin1s 'efore t-e #TTT.J<?K T-e Co&rt notes t-$t petitioner r$ise% t-is )ontention for t-e first time .-en it $ppe$le% t-e )$se to t-e $ppell$te )o&rt. 8HERE"ORE, t-e petition is -ere'y (ENIE( for l$)5 of merit $n% t-e (e)ision of t-e Co&rt of Appe$ls is -ere'y A""IRME(. SO OR(ERE(. !avide" Jr." C.J." 1C&airman2" P$no" Pardo" $n% Anares=Santia)o" JJ." )on)&r.

SMITH D!INE ECDMAN COR#ORATION, petitioner" vs. THE HONORA !E COURT O" A##EA!S $n% TRHCO #HARMA COR#ORATION,respondents. CAR#IO2MORA!ES, J.: Smit- Dline e)5m$n Corpor$tion (petitioner), $ )orpor$tion e=istin1 'y virt&e of t-e l$.s of t-e st$te of #ennsylv$ni$, Unite% St$tes of Ameri)$ (U.S.) $n% li)ense% to %o '&siness in t-e #-ilippines, file% on O)to'er @, +*,0, $s $ssi1nee, 'efore t-e #-ilippine #$tent Offi)e (no. &re$& of #$tents, Tr$%em$r5s $n% Te)-nolo1y Tr$nsfer) $n $ppli)$tion for p$tent over $n invention entitle% SMet-o%s $n% Compositions for #ro%&)in1 ip-$si) #$r$siti)i%e A)tivity Usin1 Met-yl ? #ropylt-io2;2 enBimi%$Bole C$r'$m$te.T T-e $ppli)$tion 'ore Seri$l No. +@*@*. On Septem'er ;4, +*@+, !etters #$tent No. +4?0+ J+K for t-e $fores$i% invention .$s iss&e% to petitioner for $ term of seventeen (+,) ye$rs. T-e letters p$tent provi%es in its )l$ims J;K t-$t t-e p$tente% invention )onsiste% of $ ne. )ompo&n% n$me% met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te $n% t-e met-o%s or )ompositions &tiliBin1 t-e )ompo&n% $s $n $)tive in1re%ient in fi1-tin1 infe)tions )$&se% 'y 1$strointestin$l p$r$sites $n% l&n1.orms in $nim$ls s&)- $s s.ine, s-eep, )$ttle, 1o$ts, -orses, $n% even pet $nim$ls. Try)o #-$rm$ Corpor$tion (priv$te respon%ent) is $ %omesti) )orpor$tion t-$t m$n&f$)t&res, %istri'&tes $n% sells veterin$ry pro%&)ts in)l&%in1 Impre1on, $ %r&1 t-$t -$s Al'en%$Bole for its $)tive in1re%ient $n% is )l$ime% to 'e effe)tive $1$inst 1$stro2intestin$l ro&n%.orms, l&n1.orms, t$pe.orms $n% fl&5e infest$tion in )$r$'$os, )$ttle $n% 1o$ts. #etitioner s&e% priv$te respon%ent for infrin1ement of p$tent $n% &nf$ir )ompetition 'efore t-e C$loo)$n City Re1ion$l Tri$l Co&rt (RTC).J<K It )l$ime% t-$t its p$tent )overs or in)l&%es t-e s&'st$n)e Al'en%$Bole s&)- t-$t priv$te respon%ent, 'y m$n&f$)t&rin1, sellin1, &sin1, $n% )$&sin1 to 'e sol% $n% &se% t-e %r&1 Impre1on .it-o&t its $&t-oriB$tion, infrin1e% Cl$ims ;, <, 4, ,, @ $n% * of !etters #$tent No. +4?0+ J4K $s .ell $s )ommitte% &nf$ir )ompetition &n%er Arti)le +@*, p$r$1r$p- + of t-e Revise% #en$l Co%e $n% Se)tion ;* of Rep&'li) A)t No. +00 (T-e Tr$%em$r5 !$.) for $%vertisin1 $n% sellin1 $s its o.n t-e %r&1 Impre1on $lt-o&1- t-e s$me )ont$ine% petitionerQs p$tente% Al'en%$Bole.J?K On motion of petitioner, r$n)- +;? of t-e C$loo)$n RTC iss&e% $ tempor$ry restr$inin1 or%er $1$inst priv$te respon%ent en6oinin1 it from )ommittin1 $)ts of p$tent infrin1ement $n% &nf$ir )ompetition. J0K A .rit of prelimin$ry in6&n)tion .$s s&'seC&ently iss&e%.J,K #riv$te respon%ent in its Ans.er J@K $verre% t-$t !etters #$tent No. +4?0+ %oes not )over t-e s&'st$n)e Al'en%$Bole for no.-ere in it %oes t-$t .or% $ppe$r7 t-$t even if t-e p$tent .ere to in)l&%e Al'en%$Bole, s&)s&'st$n)e is &np$tent$'le7 t-$t t-e &re$& of "oo% $n% (r&1s $llo.e% it to m$n&f$)t&re $n% m$r5et Impre1on .itAl'en%$Bole $s its 5no.n in1re%ient7 t-$t t-ere is no proof t-$t it p$sse% off in $ny .$y its veterin$ry pro%&)ts $s t-ose of petitioner7 t-$t !etters #$tent No. +4?0+ is n&ll $n% voi%, t-e $ppli)$tion for t-e iss&$n)e t-ereof -$vin1 'een file% 'eyon% t-e one ye$r perio% from t-e filin1 of $n $ppli)$tion $'ro$% for t-e s$me invention )overe% t-ere'y, in viol$tion of Se)tion +? of Rep&'li) A)t No. +0? (T-e #$tent !$.)7 $n% t-$t petitioner is not t-e re1istere% p$tent -ol%er. #riv$te respon%ent lo%1e% $ Co&nter)l$im $1$inst petitioner for s&)- $mo&nt of $)t&$l %$m$1es $s m$y 'e proven7 #+,333,333.33 in mor$l %$m$1es7 #<33,333.33 in e=empl$ry %$m$1es7 $n% #+?3,333.33 in $ttorneyQs fees. "in%in1 for priv$te respon%ent, t-e tri$l )o&rt ren%ere% $ (e)ision %$te% /&ly ;<, +**+, J*K t-e %ispositive portion of .-i)- re$%s: 8HERE"ORE, in vie. of t-e fore1oin1, pl$intiffQs )ompl$int s-o&l% 'e, $s it is -ere'y, (ISMISSE(. T-e 8rit of in6&n)tion iss&e% in )onne)tion .it- t-e )$se is -ere'y or%ere% (ISSO!GE(.

T-e !etters #$tent No. +4?0+ iss&e% 'y t-e t-en #-ilippine #$tents Offi)e is -ere'y %e)l$re% n&ll $n% voi% for 'ein1 in viol$tion of Se)tions ,, * $n% +? of t-e #$tents !$.. #&rs&$nt to Se). 40 of t-e #$tents !$., t-e (ire)tor of &re$& of #$tents is -ere'y %ire)te% to )$n)el !etters #$tent No. +4?0+ iss&e% to t-e pl$intiff $n% to p&'lis- s&)- )$n)ell$tion in t-e Offi)i$l G$Bette. (efen%$nt Try)o #-$rm$)e&ti)$l Corpor$tion is -ere'y $.$r%e% #<<3,333.33 $)t&$l %$m$1es $n% #+33,333.33 $ttorneyQs fees $s pr$ye% for in its )o&nter)l$im '&t s$i% $mo&nt $.$r%e% to %efen%$nt is s&'6e)t to t-e lien on )orre)t p$yment of filin1 fees. SO OR(ERE(. (Un%ers)orin1 s&pplie%) On $ppe$l, t-e Co&rt of Appe$ls, 'y (e)ision of April ;+, +**?, J+3K &p-el% t-e tri$l )o&rtQs fin%in1 t-$t priv$te respon%ent .$s not li$'le for $ny infrin1ement of t-e p$tent of petitioner in li1-t of t-e l$tterQs f$il&re to s-o. t-$t Al'en%$Bole is t-e s$me $s t-e )ompo&n% s&'6e)t of !etters #$tent No. +4?0+. Notin1 petitionerQs $%mission of t-e iss&$n)e 'y t-e U.S. of $ p$tent for Al'en%$Bole in t-e n$me of Smit- Dline $n% "ren)- !$'or$tories .-i)- .$s petitionerQs former )orpor$te n$me, t-e $ppell$te )o&rt )onsi%ere% t-e U.S. p$tent $s implyin1 t-$t Al'en%$Bole is %ifferent from met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te. It li5e.ise fo&n% t-$t priv$te respon%ent .$s not 1&ilty of %e)eivin1 t-e p&'li) 'y misrepresentin1 t-$t Impre1on is its pro%&)t. T-e $ppell$te )o&rt, -o.ever, %e)l$re% t-$t !etters #$tent No. +4?0+ .$s not voi% $s it s&st$ine% petitionerQs e=pl$n$tion t-$t #$tent Appli)$tion Seri$l No. +@*@* .-i)- .$s file% on O)to'er @, +*,0 .$s $ %ivision$l $ppli)$tion of #$tent Appli)$tion Seri$l No. +,;@3 file% on /&ne +,, +*,? .it- t-e #-ilippine #$tent Offi)e, .ell .it-in one ye$r from petitionerQs filin1 on /&ne +*, +*,4 of its "orei1n Appli)$tion #riority ($t$ No. 4@3,040 in t-e U.S. )overin1 t-e s$me )ompo&n% s&'6e)t of #$tent Appli)$tion Seri$l No. +,;@3. Applyin1 Se)tion +, of t-e #$tent !$., t-e Co&rt of Appe$ls t-&s r&le% t-$t #$tent Appli)$tion Seri$l No. +@*@* .$s %eeme% file% on /&ne +,, +**? or still .it-in one ye$r from t-e filin1 of $ p$tent $ppli)$tion $'ro$% in )ompli$n)e .it- t-e one2ye$r r&le &n%er Se)tion +? of t-e #$tent !$.. An% it re6e)te% t-e s&'mission t-$t t-e )ompo&n% in !etters #$tent No. +4?0+ .$s not p$tent$'le, )itin1 t-e 6&rispr&%enti$lly est$'lis-e% pres&mption t-$t t-e #$tent Offi)eQs %etermin$tion of p$tent$'ility is )orre)t. "in$lly, it r&le% t-$t petitioner est$'lis-e% itself to 'e t-e one $n% t-e s$me $ssi1nee of t-e p$tent not.it-st$n%in1 )-$n1es in its )orpor$te n$me. T-&s t-e $ppell$te )o&rt %ispose%: 8HERE"ORE, t-e 6&%1ment $ppe$le% from is A""IRME( .it- t-e MO(I"ICATION t-$t t-e or%ers for t-e n&llifi)$tion of !etters #$tent No. +4?0+ $n% for its )$n)ell$tion $re %elete% t-erefrom. SO OR(ERE(. #etitionerQs motion for re)onsi%er$tion of t-e Co&rt of Appe$lsQ %e)ision -$vin1 'een %enie% J++K t-e present petition for revie. on )ertior$riJ+;K .$s file%, $ssi1nin1 $s errors t-e follo.in1: I. THE COURT O" A##EA!S GRAGE!H ERRE( IN NOT "IN(ING THAT A! EN(ANO!E, THE ACTIGE INGRE(IENT IN TRHCOQS SIM#REGONT (RUG, IS INC!U(E( IN #ETITIONERQS !ETTERS #ATENT NO. +4?0+, AN( THAT CONSEFUENT!H TRHCO IS ANS8ERA !E "OR #ATENT IN"RINGEMENT. II. THE COURT O" A##EA!S GRAGE!H A8AR(ING TO #RIGATE RES#ON(ENT TRHCO #HARMA #<<3,333.33 ACTUA! (AMAGES AN( #+33,333.33 ATTORNEHQS "EES. ERRE( IN COR#ORATION

#etitioner $r1&es t-$t &n%er t-e doctrine of e#$ivalents for %eterminin1 p$tent infrin1ement, Al'en%$Bole, t-e $)tive in1re%ient it $lle1es .$s $ppropri$te% 'y priv$te respon%ent for its %r&1 Impre1on, is s&'st$nti$lly t-e s$me $s met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te )overe% 'y its p$tent sin)e 'ot- of t-em $re me$nt to )om'$t .orm or p$r$site infest$tion in $nim$ls. It )ites t-e S&nre'&tte%T testimony of its .itness (r. Go%ofre%o C. Orinion ((r. Orinion) t-$t t-e )-emi)$l form&l$ in !etters #$tent No. +4?0+ refers to t-e )ompo&n% Al'en%$Bole. #etitioner $%%s t-$t t-e t.o s&'st$n)es s&'st$nti$lly %o t-e s$me f&n)tion in s&'st$nti$lly t-e s$me .$y to $)-ieve t-e s$me res&lts, t-ere'y m$5in1 t-em tr&ly i%enti)$l. #etitioner t-&s s&'mits t-$t t-e $ppell$te )o&rt s-o&l% -$ve 1one 'eyon% t-e liter$l .or%in1s &se% in !etters #$tent No. +4?0+, 'eyon% merely $pplyin1 t-e liter$l infrin1ement test, for in spite of t-e f$)t t-$t t-e .or% Al'en%$Bole %oes not $ppe$r in petitionerQs letters p$tent, it -$s $'ly s-o.n 'y evi%en)e its s$meness .it- met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te. #etitioner li5e.ise points o&t t-$t its $ppli)$tion .it- t-e #-ilippine #$tent Offi)e on $))o&nt of .-i)- it .$s 1r$nte% !etters #$tent No. +4?0+ .$s merely $ %ivision$l $ppli)$tion of $ prior $ppli)$tion in t-e U. S. .-i)- 1r$nte% $ p$tent for Al'en%$Bole. Hen)e, petitioner )on)l&%es t-$t 'ot- met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te $n% t-e U.S.2p$tente% Al'en%$Bole $re %epen%ent on e$)- ot-er $n% m&t&$lly )ontri'&te to pro%&)e $ sin1le res&lt, t-ere'y m$5in1 Al'en%$Bole $s m&)- $ p$rt of !etters #$tent No. +4?0+ $s t-e ot-er s&'st$n)e is. #etitioner )on)e%es in its S&r2Re6oin%er J+<K t-$t $lt-o&1- met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te is not i%enti)$l .it- Al'en%$Bole, t-e former is $n improvement or improve% version of t-e l$tter t-ere'y m$5in1 'ots&'st$n)es still s&'st$nti$lly t-e s$me. 8it- respe)t to t-e $.$r% of $)t&$l %$m$1es in f$vor of priv$te respon%ent in t-e $mo&nt of #<<3,333.33 representin1 lost profits, petitioner $ss$ils t-e s$me $s -i1-ly spe)&l$tive $n% )on6e)t&r$l, -en)e, .it-o&t '$sis. It $ss$ils too t-e $.$r% of #+33,333.33 in $ttorneyQs fees $s not f$llin1 &n%er $ny of t-e inst$n)es en&mer$te% 'y l$. .-ere re)overy of $ttorneyQs fees is $llo.e%. In its Comment,J+4K priv$te respon%ent )onten%s t-$t $ppli)$tion of t-e doctrine of e#$ivalents .o&l% not $lter t-e o&t)ome of t-e )$se, Al'en%$Bole $n% met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te 'ein1 t.o %ifferent )ompo&n%s .it- %ifferent )-emi)$l $n% p-ysi)$l properties. It stresses t-$t t-e e=isten)e of $ sep$r$te U.S. p$tent for Al'en%$Bole in%i)$tes t-$t t-e s$me $n% t-e )ompo&n% in !etters #$tent No. +4?0+ $re %ifferent from e$)- ot-er7 $n% t-$t sin)e it .$s on $))o&nt of $ %ivision$l $ppli)$tion t-$t t-e p$tent for met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te .$s iss&e%, t-en, 'y %efinition of $ %ivision$l $ppli)$tion, s&)- $ )ompo&n% is 6&st one of sever$l in%epen%ent inventions $lon1si%e Al'en%$Bole &n%er petitionerQs ori1in$l p$tent $ppli)$tion. As -$s repe$te%ly 'een -el%, only C&estions of l$. m$y 'e r$ise% in $ petition for revie. on )ertior$ri 'efore t-is Co&rt. Unless t-e f$)t&$l fin%in1s of t-e $ppell$te )o&rt $re mist$5en, $'s&r%, spe)&l$tive, )on6e)t&r$l, )onfli)tin1, t$inte% .it- 1r$ve $'&se of %is)retion, or )ontr$ry to t-e fin%in1s )&lle% 'y t-e )o&rt of ori1in, J+?K t-is Co&rt %oes not revie. t-em. "rom $n e=$min$tion of t-e evi%en)e on re)or%, t-is Co&rt fin%s not-in1 infirm in t-e $ppell$te )o&rtQs )on)l&sions .it- respe)t to t-e prin)ip$l iss&e of .-et-er priv$te respon%ent )ommitte% p$tent infrin1ement to t-e pre6&%i)e of petitioner. T-e '&r%en of proof to s&'st$nti$te $ )-$r1e for p$tent infrin1ement rests on t-e pl$intiff. J+0K In t-e )$se $t '$r, petitionerQs evi%en)e )onsists prim$rily of its !etters #$tent No. +4?0+, $n% t-e testimony of (r. Orinion, its 1ener$l m$n$1er in t-e #-ilippines for its Anim$l He$lt- #ro%&)ts (ivision, 'y .-i)- it so&1-t to s-o. t-$t its p$tent for t-e )ompo&n% met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te $lso )overs t-e s&'st$n)e Al'en%$Bole. "rom $ re$%in1 of t-e * )l$ims of !etters #$tent No. +4?0+ in rel$tion to t-e ot-er portions t-ereof, no mention is m$%e of t-e )ompo&n% Al'en%$Bole. All t-$t t-e )l$ims %is)lose $re: t-e )overe% invention, t-$t is, t-e )ompo&n% met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te7 t-e )ompo&n%Qs 'ein1 $nt-elminti) '&t nonto=i) for $nim$ls or its $'ility

to %estroy p$r$sites .it-o&t -$rmin1 t-e -ost $nim$ls7 $n% t-e p$tente% met-o%s, )ompositions or prep$r$tions involvin1 t-e )ompo&n% to m$=imiBe its effi)$)y $1$inst )ert$in 5in%s of p$r$sites infe)tin1 spe)ifie% $nim$ls. 8-en t-e l$n1&$1e of its )l$ims is )le$r $n% %istin)t, t-e p$tentee is 'o&n% t-ere'y $n% m$y not )l$im $nyt-in1 'eyon% t-em.J+,K An% so $re t-e )o&rts 'o&n% .-i)- m$y not $%% to or %etr$)t from t-e )l$ims m$tters not e=presse% or ne)ess$rily implie%, nor m$y t-ey enl$r1e t-e p$tent 'eyon% t-e s)ope of t-$t .-i)- t-e inventor )l$ime% $n% t-e p$tent offi)e $llo.e%, even if t-e p$tentee m$y -$ve 'een entitle% to somet-in1 more t-$n t-e .or%s it -$% )-osen .o&l% in)l&%e.J+@K It 'e$rs stressin1 t-$t t-e mere $'sen)e of t-e .or% Al'en%$Bole in !etters #$tent No. +4?0+ is not %etermin$tive of Al'en%$BoleQs non2in)l&sion in t-e )l$ims of t-e p$tent. 8-ile Al'en%$Bole is $%mitte%ly $ )-emi)$l )ompo&n% t-$t e=ists 'y $ n$me %ifferent from t-$t )overe% in petitionerQs letters p$tent, t-e l$n1&$1e of !etter #$tent No. +4?0+ f$ils to yiel% $nyt-in1 $t $ll re1$r%in1 Al'en%$Bole. An% no e=trinsi) evi%en)e -$% 'een $%%&)e% to prove t-$t Al'en%$Bole in-eres in petitionerQs p$tent in spite of its omission t-erefrom or t-$t t-e me$nin1 of t-e )l$ims of t-e p$tent em'r$)es t-e s$me. 8-ile petitioner )on)e%es t-$t t-e mere liter$l .or%in1s of its p$tent )$nnot est$'lis- priv$te respon%entQs infrin1ement, it &r1es t-is Co&rt to $pply t-e doctrine of e#$ivalents. T-e doctrine of e#$ivalents provi%es t-$t $n infrin1ement $lso t$5es pl$)e .-en $ %evi)e $ppropri$tes $ prior invention 'y in)orpor$tin1 its innov$tive )on)ept $n%, $lt-o&1- .it- some mo%ifi)$tion $n% )-$n1e, performs s&'st$nti$lly t-e s$me f&n)tion in s&'st$nti$lly t-e s$me .$y to $)-ieve s&'st$nti$lly t-e s$me res&lt. J+*K Het $1$in, $ s)r&tiny of petitionerQs evi%en)e f$ils to )onvin)e t-is Co&rt of t-e s&'st$nti$l s$meness of petitionerQs p$tente% )ompo&n% $n% Al'en%$Bole. 8-ile 'ot- )ompo&n%s -$ve t-e effe)t of ne&tr$liBin1 p$r$sites in $nim$ls, i%entity of res&lt %oes not $mo&nt to infrin1ement of p$tent &nless Al'en%$Bole oper$tes in s&'st$nti$lly t-e s$me .$y or 'y s&'st$nti$lly t-e s$me me$ns $s t-e p$tente% )ompo&n%, even t-o&1- it performs t-e s$me f&n)tion $n% $)-ieves t-e s$me res&lt.J;3K In ot-er .or%s, t-e prin)iple or mo%e of oper$tion m&st 'e t-e s$me or s&'st$nti$lly t-e s$me.J;+K T-e doctrine of e#$ivalents t-&s reC&ires s$tisf$)tion of t-e f&n)tion2me$ns2$n%2res&lt test, t-e p$tentee -$vin1 t-e '&r%en to s-o. t-$t $ll t-ree )omponents of s&)- eC&iv$len)y test $re met.J;;K As st$te% e$rly on, petitionerQs evi%en)e f$ils to e=pl$in -o. Al'en%$Bole is in every essenti$l %et$il i%enti)$l to met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te. Ap$rt from t-e f$)t t-$t Al'en%$Bole is $n $nt-elminti) $1ent li5e met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te, not-in1 more is $sserte% $n% $))or%in1ly s&'st$nti$te% re1$r%in1 t-e met-o% or me$ns 'y .-i)- Al'en%$Bole .ee%s o&t p$r$sites in $nim$ls, t-&s 1ivin1 no inform$tion on .-et-er t-$t met-o% is s&'st$nti$lly t-e s$me $s t-e m$nner 'y .-i)- petitionerQs )ompo&n% .or5s. T-e testimony of (r. Orinion len%s no s&pport to petitionerQs )$&se, -e not -$vin1 'een presente% or C&$lifie% $s $n e=pert .itness .-o -$s t-e 5no.le%1e or e=pertise on t-e m$tter of )-emi)$l )ompo&n%s. As for t-e )on)ept of %ivision$l $ppli)$tions proffere% 'y petitioner, it )omes into pl$y .-en t.o or more inventions $re )l$ime% in $ sin1le $ppli)$tion '&t $re of s&)- $ n$t&re t-$t $ sin1le p$tent m$y not 'e iss&e% for t-em. J;<K T-e $ppli)$nt t-&s is reC&ire% Sto %ivi%e,T t-$t is, to limit t-e )l$ims to .-i)-ever invention -e m$y ele)t, .-ere$s t-ose inventions not ele)te% m$y 'e m$%e t-e s&'6e)t of sep$r$te $ppli)$tions .-i)- $re )$lle% S%ivision$l $ppli)$tions.TJ;4K 8-$t t-is only me$ns is t-$t petitionerQs met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te is $n invention %istin)t from t-e ot-er inventions )l$ime% in t-e ori1in$l $ppli)$tion %ivi%e% o&t, Al'en%$Bole 'ein1 one of t-ose ot-er inventions. Ot-er.ise, met-yl ? propylt-io2;2'enBimi%$Bole )$r'$m$te .o&l% not -$ve 'een t-e s&'6e)t of $ %ivision$l $ppli)$tion if $ sin1le p$tent )o&l% -$ve 'een iss&e% for it $s .ell $s Al'en%$Bole. T-e fore1oin1 %is)&ssions not.it-st$n%in1, t-is Co&rt %oes not s&st$in t-e $.$r% of $)t&$l %$m$1es $n% $ttorneyQs fees in f$vor of priv$te respon%ent. T-e )l$ime% $)t&$l %$m$1es of #<<3,333.33 representin1 lost profits or reven&es in)&rre% 'y priv$te respon%ent $s $ res&lt of t-e iss&$n)e of t-e in6&n)tion $1$inst it, )omp&te% $t t-e r$te of <3M of its $lle1e% #+33,333.33 mont-ly 1ross s$les for eleven mont-s, .ere s&pporte% 'y t-e testimonies of priv$te

respon%entQs #resi%entJ;?K $n% E=e)&tive Gi)e2#resi%ent t-$t t-e $ver$1e mont-ly s$le of Impre1on .$s #+33,333.33 $n% t-$t s$les pl&mmete% to Bero $fter t-e iss&$n)e of t-e in6&n)tion. J;0K 8-ile in%emnifi)$tion for $)t&$l or )ompens$tory %$m$1es )overs not only t-e loss s&ffere% ( damn$m emer)ens2 '&t $lso profits .-i)- t-e o'li1ee f$ile% to o't$in (l$cr$m cessans or )anacias fr$stradas), it is ne)ess$ry to prove t-e $)t&$l $mo&nt of %$m$1es .it- $ re$son$'le %e1ree of )ert$inty '$se% on )ompetent proof $n% on t-e 'est evi%en)e o't$in$'le 'y t-e in6&re% p$rty. J;,K T-e testimonies of priv$te respon%entQs offi)ers $re not t-e )ompetent proof or 'est evi%en)e o't$in$'le to est$'lisits ri1-t to $)t&$l or )ompens$tory %$m$1es for s&)- %$m$1es $lso reC&ire present$tion of %o)&ment$ry evi%en)e to s&'st$nti$te $ )l$im t-erefor.J;@K In t-e s$me vein, t-is Co&rt %oes not s&st$in t-e 1r$nt 'y t-e $ppell$te )o&rt of $ttorneyQs fees to priv$te respon%ent $n)-ore% on Arti)le ;;3@ (;) of t-e Civil Co%e, priv$te respon%ent -$vin1 'een $lle1e%ly for)e% to liti1$te $s $ res&lt of petitionerQs s&it. Even if $ )l$im$nt is )ompelle% to liti1$te .it- t-ir% persons or to in)&r e=penses to prote)t its ri1-ts, still $ttorneyQs fees m$y not 'e $.$r%e% .-ere no s&ffi)ient s-o.in1 of '$% f$it- )o&l% 'e refle)te% in $ p$rtyQs persisten)e in $ )$se ot-er t-$n $n erroneo&s )onvi)tion of t-e ri1-teo&sness of -is )$&se. J;*K T-ere e=ists no evi%en)e on re)or% in%i)$tin1 t-$t petitioner .$s move% 'y m$li)e in s&in1 priv$te respon%ent. T-is Co&rt, -o.ever, 1r$nts priv$te respon%ent temper$te or mo%er$te %$m$1es in t-e $mo&nt of #;3,333.33 .-i)- it fin%s re$son$'le &n%er t-e )ir)&mst$n)es, it -$vin1 s&ffere% some pe)&ni$ry loss t-e $mo&nt of .-i)- )$nnot, from t-e n$t&re of t-e )$se, 'e est$'lis-e% .it- )ert$inty.J<3K 8HERE"ORE, t-e $ss$ile% %e)ision of t-e Co&rt of Appe$ls is -ere'y A""IRME( .it- MO(I"ICATION. T-e $.$r% of $)t&$l or )ompens$tory %$m$1es $n% $ttorneyQs fees to priv$te respon%ent, Try)o #-$rm$ Corpor$tion, is (E!ETE(7 inste$%, it is -ere'y $.$r%e% t-e $mo&nt of #;3,333.33 $s temper$te or mo%er$te %$m$1es. SO OR(ERE(.P$no" 1C&airman2" Pan)aniban" Sandoval=>$tierre'" $n% Corona" JJ." )on)&r.

Te)-nolo1y Tr$nsfer on /&ne ;3, +*@<, '&t .$s $pprove% only on Septem'er +;, +*@@, per Re1istr$tion No. 4++0?. "rom +*@+ to $'o&t +*@@, #e$rl $n% (e$n employe% t-e servi)es of Metro In%&stri$l Servi)es to m$n&f$)t&re its $%vertisin1 %ispl$ys. Sometime in +*@?, #e$rl $n% (e$n ne1oti$te% .it- %efen%$nt2$ppell$nt S-oem$rt, In). (SMI) for t-e le$se $n% inst$ll$tion of t-e li1-t 'o=es in SM City Nort- E%s$. Sin)e SM City Nort- E%s$ .$s &n%er )onstr&)tion $t t-$t time, SMI offere% $s $n $ltern$tive, SM M$5$ti $n% SM C&'$o, to .-i)- #e$rl $n% (e$n $1ree%. On Septem'er ++, +*@?, #e$rl $n% (e$nQs Gener$l M$n$1er, Ro%olfo Ger1$r$, s&'mitte% for si1n$t&re t-e )ontr$)ts )overin1 SM C&'$o $n% SM M$5$ti to SMIQs A%vertisin1 #romotions $n% #&'li)ity (ivision M$n$1er, R$monlito A'$no. Only t-e )ontr$)t for SM M$5$ti, -o.ever, .$s ret&rne% si1ne%. On O)to'er 4, +*@?, Ger1$r$ .rote A'$no inC&irin1 $'o&t t-e ot-er )ontr$)t $n% remin%in1 -im t-$t t-eir $1reement for inst$ll$tion of li1-t 'o=es .$s not only for its SM M$5$ti 'r$n)-, '&t $lso for SM C&'$o. SMI %i% not 'ot-er to reply. Inste$%, in $ letter %$te% /$n&$ry +4, +*@0, SMIQs -o&se )o&nsel informe% #e$rl $n% (e$n t-$t it .$s res)in%in1 t-e )ontr$)t for SM M$5$ti %&e to non2perform$n)e of t-e terms t-ereof. In -is reply %$te% "e'r&$ry +,, +*@0, Ger1$r$ proteste% t-e &nil$ter$l $)tion of SMI, s$yin1 it .$s .it-o&t '$sis. In t-e s$me letter, -e p&s-e% for t-e si1nin1 of t-e )ontr$)t for SM C&'$o. T.o ye$rs l$ter, Metro In%&stri$l Servi)es, t-e )omp$ny formerly )ontr$)te% 'y #e$rl $n% (e$n to f$'ri)$te its %ispl$y &nits, offere% to )onstr&)t li1-t 'o=es for S-oem$rtQs )-$in of stores. SMI $pprove% t-e propos$l $n% ten (+3) li1-t 'o=es .ere s&'seC&ently f$'ri)$te% 'y Metro In%&stri$l for SMI. After its )ontr$)t .it- Metro In%&stri$l .$s termin$te%, SMI en1$1e% t-e servi)es of EH( R$in'o. A%vertisin1 Corpor$tion to m$5e t-e li1-t 'o=es. Some <33 &nits .ere f$'ri)$te% in +**+. T-ese .ere %elivere% on $ st$11ere% '$sis $n% inst$lle% $t SM Me1$m$ll $n% SM City. Sometime in +*@*, #e$rl $n% (e$n, re)eive% reports t-$t e=$)t )opies of its li1-t 'o=es .ere inst$lle% $t SM City $n% in t-e f$stfoo% se)tion of SM C&'$o. Upon investi1$tion, #e$rl $n% (e$n fo&n% o&t t-$t $si%e from t-e t.o (;) reporte% SM 'r$n)-es, li1-t 'o=es simil$r to t-ose it m$n&f$)t&res .ere $lso inst$lle% in t.o (;) ot-er SM stores. It f&rt-er %is)overe% t-$t %efen%$nt2$ppell$nt Nort- E%s$ M$r5etin1 In). (NEMI), t-ro&1- its m$r5etin1 $rm, #rime Spots M$r5etin1 Servi)es, .$s set &p prim$rily to sell $%vertisin1 sp$)e in li1-te% %ispl$y &nits lo)$te% in SMIQs %ifferent 'r$n)-es. #e$rl $n% (e$n note% t-$t NEMI is $ sister )omp$ny of SMI. In t-e li1-t of its %is)overies, #e$rl $n% (e$n sent $ letter %$te% (e)em'er ++, +**+ to 'ot- SMI $n% NEMI en6oinin1 t-em to )e$se &sin1 t-e s&'6e)t li1-t 'o=es $n% to remove t-e s$me from SMIQs est$'lis-ments. It $lso %em$n%e% t-e %is)ontin&e% &se of t-e tr$%em$r5 S#oster A%s,T $n% t-e p$yment to #e$rl $n% (e$n of )ompens$tory %$m$1es in t-e $mo&nt of T.enty Million #esos (#;3,333,333.33). Upon re)eipt of t-e %em$n% letter, SMI s&spen%e% t-e le$sin1 of t.o -&n%re% t.enty2fo&r (;;4) li1-t 'o=es $n% NEMI too5 %o.n its $%vertisements for S#oster A%sT from t-e li1-te% %ispl$y &nits in SMIQs stores. Cl$imin1 t-$t 'ot- SMI $n% NEMI f$ile% to meet $ll its %em$n%s, #e$rl $n% (e$n file% t-is inst$nt )$se for infrin1ement of tr$%em$r5 $n% )opyri1-t, &nf$ir )ompetition $n% %$m$1es. In %enyin1 t-e )-$r1es -&rle% $1$inst it, SMI m$int$ine% t-$t it in%epen%ently %evelope% its poster p$nels &sin1 )ommonly 5no.n te)-niC&es $n% $v$il$'le te)-nolo1y, .it-o&t noti)e of or referen)e to #e$rl $n% (e$nQs )opyri1-t. SMI note% t-$t t-e re1istr$tion of t-e m$r5 S#oster A%sT .$s only for st$tioneries s&)- $s letter-e$%s, envelopes, $n% t-e li5e. esi%es, $))or%in1 to SMI, t-e .or% S#oster A%sT is $ 1eneri) term .-i)- )$nnot 'e $ppropri$te% $s $ tr$%em$r5, $n%, $s s&)-, re1istr$tion of s&)- m$r5 is inv$li%. It $lso stresse% t-$t #e$rl $n% (e$n is not entitle% to t-e reliefs pr$ye% for in its )ompl$int sin)e its $%vertisin1 %ispl$y &nits )ont$ine% no )opyri1-t noti)e, in

#EAR! I (EAN (#HI!.), INCOR#ORATE(, petitioner, vs. SHOEMART, INCOR#ORATE(, $n% NORTH E(SA MARDETING,INCOR#ORATE(, respondents. CORONA, J.: In t-e inst$nt petition for revie. on certiorari &n%er R&le 4? of t-e R&les of Co&rt, petitioner #e$rl I (e$n (#-il.) In). (# I () $ss$ils t-e M$y ;;, ;33+ %e)ision J+K of t-e Co&rt of Appe$ls reversin1 t-e O)to'er <+, +**0 %e)ision J;K of t-e Re1ion$l Tri$l Co&rt of M$5$ti, r$n)- +<<, in Civil C$se No. *;2?+0 .-i)- %e)l$re% priv$te respon%ents S-oem$rt In). (SMI) $n% Nort- E%s$ M$r5etin1 In). (NEMI) li$'le for infrin1ement of tr$%em$r5 $n% )opyri1-t, $n% &nf$ir )ompetition. "ACTUA! ANTECE(ENTS T-e M$y ;;, ;33+ %e)ision of t-e Co&rt of Appe$ls J<K )ont$ine% $ s&mm$ry of t-is %isp&te: S#l$intiff2$ppell$nt #e$rl $n% (e$n (#-il.), In). is $ )orpor$tion en1$1e% in t-e m$n&f$)t&re of $%vertisin1 %ispl$y &nits simply referre% to $s li1-t 'o=es. T-ese &nits &tiliBe spe)i$lly printe% posters s$n%.i)-e% 'et.een pl$sti) s-eets $n% ill&min$te% .it- '$)5 li1-ts. #e$rl $n% (e$n .$s $'le to se)&re $ Certifi)$te of Copyri1-t Re1istr$tion %$te% /$n&$ry ;3, +*@+ over t-ese ill&min$te% %ispl$y &nits. T-e $%vertisin1 li1-t 'o=es .ere m$r5ete% &n%er t-e tr$%em$r5 S#oster A%sT. T-e $ppli)$tion for re1istr$tion of t-e tr$%em$r5 .$s file% .it- t-e &re$& of #$tents, Tr$%em$r5s $n%

viol$tion of Se)tion ;, of #.(. 4*. SMI $lle1e% t-$t #e$rl $n% (e$n -$% no )$&se of $)tion $1$inst it $n% t-$t t-e s&it .$s p&rely inten%e% to m$li1n SMIQs 1oo% n$me. On t-is '$sis, SMI, $si%e from pr$yin1 for t-e %ismiss$l of t-e )$se, $lso )o&nter)l$ime% for mor$l, $)t&$l $n% e=empl$ry %$m$1es $n% for t-e )$n)ell$tion of #e$rl $n% (e$nQs Certifi)$tion of Copyri1-t Re1istr$tion No. #(2R2;??@ %$te% /$n&$ry ;3, +*@+ $n% Certifi)$te of Tr$%em$r5 Re1istr$tion No. 4+0? %$te% Septem'er +;, +*@@. NEMI, for its p$rt, %enie% -$vin1 m$n&f$)t&re%, inst$lle% or &se% $ny $%vertisin1 %ispl$y &nits, nor -$vin1 en1$1e% in t-e '&siness of $%vertisin1. It reple$%e% SMIQs $verments, $%missions $n% %eni$ls $n% pr$ye% for simil$r reliefs $n% )o&nter)l$ims $s SMI.T T-e RTC of M$5$ti City %e)i%e% in f$vor of # I (: 8-erefore, %efen%$nts SMI $n% NEMI $re fo&n% 6ointly $n% sever$lly li$'le for infrin1ement of )opyri1-t &n%er Se)tion ; of #( 4*, $s $men%e%, $n% infrin1ement of tr$%em$r5 &n%er Se)tion ;; of RA No. +00, $s $men%e%, $n% $re -ere'y pen$liBe% &n%er Se)tion ;@ of #( 4*, $s $men%e%, $n% Se)tions ;< $n% ;4 of RA +00, $s $men%e%. A))or%in1ly, %efen%$nts $re -ere'y %ire)te%: (+) ($) to p$y pl$intiff t-e follo.in1 %$m$1es: $)t&$l %$m$1es 2 #+0,033,333.33, representin1 profits %erive% 'y %efen%$nts $s $ res&lt of infrin1e2 ment of pl$intiffQs )opyri1-t from +**+ to +**; 2 #+,333.333.33

SO OR(ERE(.J4K On $ppe$l, -o.ever, t-e Co&rt of Appe$ls reverse% t-e tri$l )o&rt: Sin)e t-e li1-t 'o=es )$nnot, 'y $ny stret)- of t-e im$1in$tion, 'e )onsi%ere% $s eit-er prints, pi)tori$l ill&str$tions, $%vertisin1 )opies, l$'els, t$1s or 'o= .r$ps, to 'e properly )l$ssifie% $s $ )opyri1-t$'le )l$ss SOT .or5, .e -$ve to $1ree .it- SMI .-en it posite% t-$t .-$t .$s )opyri1-te% .ere t-e te)-ni)$l %r$.in1s only, $n% not t-e li1-t 'o=es t-emselves, t-&s: 4;. 8-en $ %r$.in1 is te)-ni)$l $n% %epi)ts $ &tilit$ri$n o'6e)t, $ )opyri1-t over t-e %r$.in1s li5e pl$intiff2$ppell$ntQs .ill not e=ten% to t-e $)t&$l o'6e)t. It -$s so 'een -el% &n%er 6&rispr&%en)e, of .-i)- t-e le$%in1 )$se is $5er vs. Sel%en (+3+ U.S. @4+ (+@,*). In t-$t )$se, Sel%en -$% o't$ine% $ )opyri1-t prote)tion for $ 'oo5 entitle% SSel%enQs Con%ense% !e%1er or oo55eepin1 Simplifie%T .-i)- p&rporte% to e=pl$in $ ne. system of 'oo55eepin1. In)l&%e% $s p$rt of t-e 'oo5 .ere 'l$n5 forms $n% ill&str$tions )onsistin1 of r&le% lines $n% -e$%in1s, spe)i$lly %esi1ne% for &se in )onne)tion .it- t-e system e=pl$ine% in t-e .or5. T-ese forms s-o.e% t-e entire oper$tion of $ %$y or $ .ee5 or $ mont- on $ sin1le p$1e, or on t.o p$1es follo.in1 e$)- ot-er. T-e %efen%$nt $5er t-en pro%&)e% forms .-i)- .ere simil$r to t-e forms ill&str$te% in Sel%enQs )opyri1-te% 'oo5s. T-e Co&rt -el% t-$t e=)l&sivity to t-e $)t&$l forms is not e=ten%e% 'y $ )opyri1-t. T-e re$son .$s t-$t Sto 1r$nt $ monopoly in t-e &n%erlyin1 $rt .-en no e=$min$tion of its novelty -$s ever 'een m$%e .o&l% 'e $ s&rprise $n% $ fr$&% &pon t-e p&'li)7 t-$t is t-e provin)e of letters p$tent, not of )opyri1-t.T An% t-$t is pre)isely t-e point. No %o&'t $.$re t-$t its $lle1e% ori1in$l %esi1n .o&l% never p$ss t-e ri1oro&s e=$min$tion of $ p$tent $ppli)$tion, pl$intiff2$ppell$nt fo&1-t to foist $ fr$&%&lent monopoly on t-e p&'li) 'y )onveniently resortin1 to $ )opyri1-t re1istr$tion .-i)- merely employs $ re)or%$l system .it-o&t t-e 'enefit of $n in2 %ept- e=$min$tion of novelty. T-e prin)iple in +a*er vs. Selden .$s li5e.ise $pplie% in ,$ller vs. 0riboro$)& +rid)e A$t&orit( J4< ". S&pp. ;*@ (S.(.N.H. +*4;)K. In t-is )$se, M&ller -$% o't$ine% $ )opyri1-t over $n &np&'lis-e% %r$.in1 entitle% S ri%1e Appro$)- R t-e %r$.in1 s-o.e% $ novel 'ri%1e $ppro$)- to &nsn$rl tr$ffi) )on1estionT. T-e %efen%$nt )onstr&)te% $ 'ri%1e $ppro$)- .-i)- .$s $lle1e% to 'e $n infrin1ement of t-e ne. %esi1n ill&str$te% in pl$intiffQs %r$.in1s. In t-is )$se it .$s -el% t-$t prote)tion of t-e %r$.in1 %oes not e=ten% to t-e &n$&t-oriBe% %&pli)$tion of t-e o'6e)t %r$.n 'e)$&se )opyri1-t e=ten%s only to t-e %es)ription or e=pression of t-e o'6e)t $n% not to t-e o'6e)t itself. It %oes not prevent one from &sin1 t-e %r$.in1s to )onstr&)t t-e o'6e)t portr$ye% in t-e %r$.in1. In t.o ot-er )$ses, %mperial Homes Corp. v. Lamont, 4?@ ". ;% @*? $n% Sc&olt' Homes" %nc. v. ,addo4, <,* ". ;% @4, it .$s -el% t-$t t-ere is no )opyri1-t infrin1ement .-en one .-o, .it-o&t 'ein1 $&t-oriBe%, &ses $ )opyri1-te% $r)-ite)t&r$l pl$n to )onstr&)t $ str&)t&re. T-is is 'e)$&se t-e )opyri1-t %oes not e=ten% to t-e str&)t&res t-emselves. In fine, .e )$nnot fin% SMI li$'le for infrin1in1 #e$rl $n% (e$nQs )opyri1-t over t-e te)-ni)$l %r$.in1s of t-e l$tterQs $%vertisin1 %ispl$y &nits. === === ===T-e S&preme Co&rt tren)-$ntly -el% in .aber)e" %ncorporated vs. %ntermediate Appellate Co$rt t-$t t-e prote)tive m$ntle of t-e Tr$%em$r5 !$. e=ten%s only to t-e 1oo%s &se% 'y t-e first &ser $s spe)ifie% in t-e )ertifi)$te of re1istr$tion, follo.in1 t-e )le$r m$n%$te )onveye% 'y Se)tion ;3 of Rep&'li) A)t +00, $s $men%e%, ot-er.ise 5no.n $s t-e Tr$%em$r5 !$., .-i)- re$%s: SEC. ;3. Certification of re)istration prima facie evidence of validit(.2 A )ertifi)$te of re1istr$tion of $ m$r5 or tr$%e2 n$me s-$ll 'e prima facie evi%en)e of t-e v$li%ity of t-e re1istr$tion, t-e re1istr$ntQs o.ners-ip of t-e m$r5 or tr$%e2

(') ()) (%)

mor$l %$m$1es

e=empl$ry %$m$1es 2 #+,333,333.33 $ttorneyQs fees pl&s )osts of s&it7 (;) to %eliver, &n%er o$t-, for impo&n%in1 in t-e N$tion$l !i'r$ry, $ll li1-t 'o=es of SMI .-i)- .ere f$'ri)$te% 'y Metro In%&stri$l Servi)es $n% EH( R$in'o. A%vertisin1 Corpor$tion7 to %eliver, &n%er o$t-, to t-e N$tion$l !i'r$ry, $ll filler2posters &sin1 t-e tr$%em$r5 S#oster A%sT, for %estr&)tion7 $n% to perm$nently refr$in from infrin1in1 t-e )opyri1-t on pl$intiffQs li1-t 'o=es $n% its tr$%em$r5 S#oster A%sT. 2 #+,333,333.33

(e)

(<)

(4)

(efen%$ntsQ )o&nter)l$ims $re -ere'y or%ere% %ismisse% for l$)5 of merit.

n$me, $n% of t-e re1istr$ntQs e=)l&sive ri1-t to &se t-e s$me in )onne)tion .it- t-e 1oo%s, '&siness or servi)es spe)ifie% in t-e )ertifi)$te, s&'6e)t to $ny )on%itions $n% limit$tions st$te% t-erein.T ($nderscorin) s$pplied) T-e re)or%s s-o. t-$t on /&ne ;3, +*@<, #e$rl $n% (e$n $pplie% for t-e re1istr$tion of t-e tr$%em$r5 S#oster A%sT .itt-e &re$& of #$tents, Tr$%em$r5s, $n% Te)-nolo1y Tr$nsfer. S$i% tr$%em$r5 .$s re)or%e% in t-e #rin)ip$l Re1ister on Septem'er +;, +*@@ &n%er Re1istr$tion No. 4++0? )overin1 t-e follo.in1 pro%&)ts: st$tioneries s&)- $s letter-e$%s, envelopes $n% )$llin1 )$r%s $n% ne.sletters. 8it- t-is $s f$)t&$l '$)5%rop, .e see no le1$l '$sis to t-e fin%in1 of li$'ility on t-e p$rt of t-e %efen%$nts2$ppell$nts for t-eir &se of t-e .or%s S#oster A%sT, in t-e $%vertisin1 %ispl$y &nits in s&it. /&rispr&%en)e -$s interprete% Se)tion ;3 of t-e Tr$%em$r5 !$. $s S$n impli)it permission to $ m$n&f$)t&rer to vent&re into t-e pro%&)tion of 1oo%s $n% $llo. t-$t pro%&)er to $ppropri$te t-e 'r$n% n$me of t-e senior re1istr$nt on 1oo%s ot-er t-$n t-ose st$te% in t-e )ertifi)$te of re1istr$tion.T T-e S&preme Co&rt f&rt-er emp-$siBe% t-e restri)tive me$nin1 of Se)tion ;3 .-en it st$te%, t-ro&1/&sti)e Conr$%o G. S$n)-eB, t-$t: Re$lly, if t-e )ertifi)$te of re1istr$tion .ere to 'e %eeme% $s in)l&%in1 1oo%s not spe)ifie% t-erein, t-en $ sit&$tion m$y $rise .-ere'y $n $ppli)$nt m$y 'e tempte% to re1ister $ tr$%em$r5 on $ny $n% $ll 1oo%s .-i)- -is min% m$y )on)eive even if -e -$% never inten%e% to &se t-e tr$%em$r5 for t-e s$i% 1oo%s. 8e 'elieve t-$t s&)- omni'&s re1istr$tion is not )ontempl$te% 'y o&r Tr$%em$r5 !$.. 8-ile .e %o not %is)o&nt t-e stri5in1 simil$rity 'et.een #e$rl $n% (e$nQs re1istere% tr$%em$r5 $n% %efen%$nts2 $ppell$ntsQ S#oster A%sT %esi1n, $s .ell $s t-e p$r$llel &se 'y .-i)- s$i% .or%s .ere &se% in t-e p$rtiesQ respe)tive $%vertisin1 )opies, .e )$nnot fin% %efen%$nts2$ppell$nts li$'le for infrin1ement of tr$%em$r5. S#oster A%sT .$s re1istere% 'y #e$rl $n% (e$n for spe)ifi) &se in its st$tioneries, in )ontr$st to %efen%$nts2$ppell$nts .-o &se% t-e s$me .or%s in t-eir $%vertisin1 %ispl$y &nits. 8-y #e$rl $n% (e$n limite% t-e &se of its tr$%em$r5 to st$tioneries is simply 'eyon% &s. &t, -$vin1 $lre$%y %one so, it m&st st$n% 'y t-e )onseC&en)e of t-e re1istr$tion .-i)- it -$% )$&se%. === === ===

A.

THE HONORA !E COURT O" A##EA!S ERRE( IN RU!ING THAT NO CO#HRIGHT IN"RINGEMENT 8AS COMMITTE( H RES#ON(ENTS SM AN( NEMI7 THE HONORA !E COURT O" A##EA!S ERRE( IN RU!ING THAT NO IN"RINGEMENT O" #EAR! I (EANQS TRA(EMARD S#OSTER A(ST 8AS COMMITTE( H RES#ON(ENTS SM AN( NEMI7 THE HONORA !E COURT O" A##EA!S ERRE( IN (ISMISSING THE A8AR( O" THE TRIA! COURT, (ES#ITE THE !ATTERQS "IN(ING, NOT (IS#UTE( H THE HONORA !E COURT O" A##EA!S, THAT SM 8AS GUI!TH O" A( "AITH IN ITS NEGOTIATION O" A(GERTISING CONTRACTS 8ITH #EAR! I (EAN. THE HONORA !E COURT O" A##EA!S ERRE( IN NOT HO!(ING RES#ON(ENTS SM AN( NEMI !IA !E TO #EAR! I (EAN "OR ACTUA!, MORA! I EEEM#!ARH (AMAGES, ATTORNEHQS "EES AN( COSTS O" SUIT.J0K

C.

(.

ISSUES In resolvin1 t-is very interestin1 )$se, .e $re )-$llen1e% on)e $1$in to p&t into proper perspe)tive fo&r m$in )on)erns of intelle)t&$l property l$. L p$tents, )opyri1-ts, tr$%em$r5s $n% &nf$ir )ompetition $risin1 from infrin1ement of $ny of t-e first t-ree. 8e s-$ll fo)&s t-en on t-e follo.in1 iss&es: (+) if t-e en1ineerin1 or te)-ni)$l %r$.in1s of $n $%vertisin1 %ispl$y &nit (li1-t 'o=) $re 1r$nte% )opyri1-t prote)tion ()opyri1-t )ertifi)$te of re1istr$tion) 'y t-e N$tion$l !i'r$ry, is t-e li1-t 'o= %epi)te% in s&)en1ineerin1 %r$.in1s ipso f$)to $lso prote)te% 'y s&)- )opyri1-tO (;) or s-o&l% t-e li1-t 'o= 'e re1istere% sep$r$tely $n% prote)te% 'y $ p$tent iss&e% 'y t-e &re$& of #$tents Tr$%em$r5s $n% Te)-nolo1y Tr$nsfer (no. Intelle)t&$l #roperty Offi)e) L in $%%ition to t-e )opyri1-t of t-e en1ineerin1 %r$.in1sO (<) )$n t-e o.ner of $ re1istere% tr$%em$r5 le1$lly prevent ot-ers from &sin1 s&)- tr$%em$r5 if it is $ mere $''revi$tion of $ term %es)riptive of -is 1oo%s, servi)es or '&sinessO ON THE ISSUE O" CO#HRIGHT IN"RINGEMENT #etitioner # I (Qs )ompl$int .$s t-$t SMI infrin1e% on its )opyri1-t over t-e li1-t 'o=es .-en SMI -$% t-e &nits m$n&f$)t&re% 'y Metro $n% EH( R$in'o. A%vertisin1 for its o.n $))o&nt. O'vio&sly, petitionerQs position .$s premise% on its 'elief t-$t its )opyri1-t over t-e en1ineerin1 %r$.in1s e=ten%e% ipso facto to t-e li1-t 'o=es %epi)te% or ill&str$te% in s$i% %r$.in1s. In r&lin1 t-$t t-ere .$s no )opyri1-t infrin1ement, t-e Co&rt of Appe$ls -el% t-$t t-e )opyri1-t .$s limite% to t-e %r$.in1s $lone $n% not to t-e li1-t 'o= itself. 8e $1ree .it- t-e $ppell$te )o&rt. "irst, petitionerQs $ppli)$tion for $ )opyri1-t )ertifi)$te L $s .ell $s Copyri1-t Certifi)$te No. #(2R;?@@ iss&e% 'y t-e N$tion$l !i'r$ry on /$n&$ry ;3, +*@+ L )le$rly st$te% t-$t it .$s for $ )l$ss SOT .or5 &n%er Se)tion ; (O) of #( 4* (T-e Intelle)t&$l #roperty (e)ree) .-i)- .$s t-e st$t&te t-en prev$ilin1. S$i% Se)tion ; e=pressly en&mer$te% t-e .or5s s&'6e)t to )opyri1-t: SEC. ;. T-e ri1-ts 1r$nte% 'y t-is (e)ree s-$ll, from t-e moment of )re$tion, s&'sist .it- respe)t to $ny of t-e follo.in1 .or5s: ====== = = =(O) #rints, pi)tori$l ill&str$tions, $%vertisin1 )opies, l$'els, t$1s, $n% 'o= .r$ps7

8e $re )onstr$ine% to $%opt t-e vie. of %efen%$nts2$ppell$nts t-$t t-e .or%s S#oster A%sT $re $ simple )ontr$)tion of t-e 1eneri) term poster $%vertisin1. In t-e $'sen)e of $ny )onvin)in1 proof t-$t S#oster A%sT -$s $)C&ire% $ se)on%$ry me$nin1 in t-is 6&ris%i)tion, .e fin% t-$t #e$rl $n% (e$nQs e=)l&sive ri1-t to t-e &se of S#oster A%sT is limite% to .-$t is .ritten in its )ertifi)$te of re1istr$tion, n$mely, st$tioneries. (efen%$nts2$ppell$nts )$nnot t-&s 'e -el% li$'le for infrin1ement of t-e tr$%em$r5 S#oster A%sT. T-ere 'ein1 no fin%in1 of eit-er )opyri1-t or tr$%em$r5 infrin1ement on t-e p$rt of SMI $n% NEMI, t-e monet$ry $.$r% 1r$nte% 'y t-e lo.er )o&rt to #e$rl $n% (e$n -$s no le1 to st$n% on. === === ===

8HERE"ORE, premises )onsi%ere%, t-e $ss$ile% %e)ision is REGERSE( $n% SET ASI(E, $n% $not-er is ren%ere% (ISMISSING t-e )ompl$int $n% )o&nter)l$ims in t-e $'ove2entitle% )$se for l$)5 of merit.J?K (iss$tisfie% .it- t-e $'ove %e)ision, petitioner # I ( file% t-e inst$nt petition $ssi1nin1 t-e follo.in1 errors for t-e Co&rtQs )onsi%er$tion:

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= = =Alt-o&1- petitionerQs )opyri1-t )ertifi)$te .$s entitle% SA%vertisin1 (ispl$y UnitsT (.-i)- %epi)te% t-e 'o=2type ele)tri)$l %evi)es), its )l$im of )opyri1-t infrin1ement )$nnot 'e s&st$ine%.

Copyri1-t, in t-e stri)t sense of t-e term, is p&rely $ st$t&tory ri1-t. ein1 $ mere st$t&tory 1r$nt, t-e ri1-ts $re limite% to .-$t t-e st$t&te )onfers. It m$y 'e o't$ine% $n% en6oye% only .it- respe)t to t-e s&'6e)ts $n% 'y t-e persons, $n% on terms $n% )on%itions spe)ifie% in t-e st$t&te. J,K Accordin)l(" it can cover onl( t&e wor*s fallin) wit&in t&e stat$tor( en$meration or description.J@K # I ( se)&re% its )opyri1-t &n%er t-e )l$ssifi)$tion class BOC wor*. T-is 'ein1 so, petitionerQs )opyri1-t prote)tion e=ten%e% only to t-e te)-ni)$l %r$.in1s $n% not to t-e li1-t 'o= itself 'e)$&se t-e l$tter .$s not $t $ll in t-e )$te1ory of Sprints, pi)tori$l ill&str$tions, $%vertisin1 )opies, l$'els, t$1s $n% 'o= .r$ps.T St$te% ot-er.ise, even $s .e fin% t-$t # I ( in%ee% o.ne% $ v$li% )opyri1-t, t-e s$me )o&l% -$ve referre% only to t-e te)-ni)$l %r$.in1s .it-in t-e )$te1ory of Spi)tori$l ill&str$tions.T It )o&l% not -$ve possi'ly stret)-e% o&t to in)l&%e t-e &n%erlyin1 li1-t 'o=. T-e stri)t $ppli)$tionJ*K of t-e l$.Qs en&mer$tion in Se)tion ; prevents &s from 1ivin1 petitioner even $ little lee.$y, t-$t is, even if its )opyri1-t )ertifi)$te .$s entitle% SA%vertisin1 (ispl$y Units.T 8-$t t-e l$. %oes not in)l&%e, it e=)l&%es, $n% for t-e 1oo% re$son: t-e li1-t 'o= .$s not $ liter$ry or $rtisti) pie)e .-i)- )o&l% 'e )opyri1-te% &n%er t-e )opyri1-t l$.. An% no less )le$rly, neit-er )o&l% t-e l$)5 of st$t&tory $&t-ority to m$5e t-e li1-t 'o= )opyri1-t$'le 'e reme%ie% 'y t-e simplisti) $)t of entitlin1 t-e )opyri1-t )ertifi)$te iss&e% 'y t-e N$tion$l !i'r$ry $s SA%vertisin1 (ispl$y Units.T In fine, if SMI $n% NEMI reprinte% # I (Qs te)-ni)$l %r$.in1s for s$le to t-e p&'li) .it-o&t li)ense from # I (, t-en no %o&'t t-ey .o&l% -$ve 'een 1&ilty of )opyri1-t infrin1ement. &t t-is .$s not t-e )$se. SMIQs $n% NEMIQs $)ts )ompl$ine% of 'y # I ( .ere to -$ve &nits simil$r or i%enti)$l to t-e li1-t 'o= ill&str$te% in t-e te)-ni)$l %r$.in1s m$n&f$)t&re% 'y Metro $n% EH( R$in'o. A%vertisin1, for le$sin1 o&t to %ifferent $%vertisers. 8$s t-is $n infrin1ement of petitionerQs )opyri1-t over t-e te)-ni)$l %r$.in1sO 8e %o not t-in5 so. (&rin1 t-e tri$l, t-e presi%ent of # I ( -imself $%mitte% t-$t t-e li1-t 'o= .$s neit-er $ liter$ry not $n $rtisti) .or5 '&t $n Sen1ineerin1 or m$r5etin1 invention.T J+3K O'vio&sly, t-ere $ppe$re% to 'e some )onf&sion re1$r%in1 .-$t o&1-t or o&1-t not to 'e t-e proper s&'6e)ts of )opyri1-ts, p$tents $n% tr$%em$r5s. In t-e le$%in1 )$se of 5&o vs. Co$rt of Appeals"J++K .e r&le% t-$t t-ese t-ree le1$l ri1-ts $re )ompletely %istin)t $n% sep$r$te from one $not-er, $n% t-e prote)tion $ffor%e% 'y one )$nnot 'e &se% inter)-$n1e$'ly to )over items or .or5s t-$t e=)l&sively pert$in to t-e ot-ers: Tr$%em$r5, )opyri1-t $n% p$tents $re %ifferent intelle)t&$l property ri1-ts t-$t )$nnot 'e inter)-$n1e% .it- one $not-er. A trademar* is an( visible si)n capable of distin)$is&in) t&e )oods 1trademar*2 or services 1service mar*2 of an enterprise and s&all incl$de a stamped or mar*ed container of )oods. In rel$tion t-ereto, $ tr$%e n$me me$ns t-e n$me or %esi1n$tion i%entifyin1 or %istin1&is-in1 $n enterprise. Me$n.-ile, t&e scope of a cop(ri)&t is confined to literar( and artistic wor*s .-i)- $re ori1in$l intelle)t&$l )re$tions in t-e liter$ry $n% $rtisti) %om$in prote)te% from t-e moment of t-eir )re$tion. Patentable inventions" on t&e ot&er &and" refer to an( tec&nical sol$tion of a problem in an( field of &$man activit( .-i)- is ne., involves $n inventive step $n% is in%&stri$lly $ppli)$'le. ON THE ISSUE O" #ATENT IN"RINGEMENT T-is 'rin1s &s to t-e ne=t point: if, %espite its m$n&f$)t&re $n% )ommer)i$l &se of t-e li)&t bo4es .it-o&t li)ense from petitioner, priv$te respon%ents )$nnot 'e -el% le1$lly li$'le for infrin1ement of # I (Qs )opyri1-t over its tec&nical drawin)s of t&e said li)&t bo4es, s-o&l% t-ey 'e li$'le inste$% for infrin1ement of p$tentO 8e %o not t-in5 so eit-er. "or some re$son or $not-er, petitioner never se)&re% $ p$tent for t-e li1-t 'o=es. It t-erefore $)C&ire% no p$tent ri1-ts .-i)- )o&l% -$ve prote)te% its invention, if in f$)t it re$lly .$s. An% 'e)$&se it -$% no p$tent, petitioner )o&l% not le1$lly prevent $nyone from m$n&f$)t&rin1 or )ommer)i$lly &sin1 t-e )ontr$ption. In Creser Precision S(stems" %nc. vs. Co$rt of Appeals"J+;K .e -el% t-$t St-ere )$n 'e no infrin1ement of $ p$tent &ntil $ p$tent -$s 'een iss&e%, sin)e .-$tever ri1-t one -$s to t-e invention )overe% 'y t-e p$tent arises alone from t&e )rant of patent. = = = (A)n inventor -$s no )ommon l$. ri1-t to $ monopoly of -is invention. He -$s t-e ri1-t to m$5e &se of $n% ven% -is invention, '&t if

-e vol&nt$rily %is)loses it, s&)- $s 'y offerin1 it for s$le, t-e .orl% is free to )opy $n% &se it .it- imp&nity. A p$tent, -o.ever, 1ives t-e inventor t-e ri1-t to e=)l&%e $ll ot-ers. As $ p$tentee, -e -$s t-e e=)l&sive ri1-t of m$5in1, sellin1 or &sin1 t-e invention. J+<K On t-e $ss&mption t-$t petitionerQs $%vertisin1 &nits .ere p$tent$'le inventions, petitioner reve$le% t-em f&lly to t-e p&'li) 'y s&'mittin1 t-e en1ineerin1 %r$.in1s t-ereof to t-e N$tion$l !i'r$ry. To 'e $'le to effe)tively $n% le1$lly pre)l&%e ot-ers from )opyin1 $n% profitin1 from t-e invention, $ p$tent is $ primor%i$l reC&irement. No p$tent, no prote)tion. T-e &ltim$te 1o$l of $ p$tent system is to 'rin1 ne. %esi1ns $n% te)-nolo1ies into t-e p&'li) %om$in t-ro&1- %is)los&re. J+4K I%e$s, on)e %is)lose% to t-e p&'li) .it-o&t t-e prote)tion of $ v$li% p$tent, $re s&'6e)t to $ppropri$tion .it-o&t si1nifi)$nt restr$int.J+?K On one si%e of t-e )oin is t-e p&'li) .-i)- .ill 'enefit from ne. i%e$s7 on t-e ot-er $re t-e inventors .-o m&st 'e prote)te%. As -el% in +a$er D Cie vs. OE!onnel,J+0K ST-e $)t se)&re% to t-e inventor t-e e=)l&sive ri1-t to m$5e &se, $n% ven% t-e t-in1 p$tente%, $n% )onseC&ently to prevent ot-ers from e=er)isin1 li5e privile1es .it-o&t t-e )onsent of t-e p$tentee. It .$s p$sse% for t-e p&rpose of en)o&r$1in1 &sef&l invention $n% promotin1 ne. $n% &sef&l inventions 'y t-e prote)tion $n% stim&l$tion 1iven to inventive 1eni&s, $n% .$s inten%e% to se)&re to t-e p&'li), $fter t-e l$pse of t-e e=)l&sive privile1es 1r$nte% t-e 'enefit of s&)- inventions $n% improvements.T T-e l$. $ttempts to stri5e $n i%e$l '$l$n)e 'et.een t-e t.o interests: S(T-e p)$tent system t-&s em'o%ies $ )$ref&lly )r$fte% '$r1$in for en)o&r$1in1 t-e )re$tion $n% %is)los&re of ne. &sef&l $n% non2o'vio&s $%v$n)es in te)-nolo1y $n% %esi1n, in ret&rn for t-e e=)l&sive ri1-t to pr$)ti)e t-e invention for $ n&m'er of ye$rs. T-e inventor m$y 5eep -is invention se)ret $n% re$p its fr&its in%efinitely. In )onsi%er$tion of its %is)los&re $n% t-e )onseC&ent 'enefit to t-e )omm&nity, t-e p$tent is 1r$nte%. An e=)l&sive en6oyment is 1&$r$ntee% -im for +, ye$rs, '&t &pon t-e e=pir$tion of t-$t perio%, t-e 5no.le%1e of t-e invention in&res to t-e people, .-o $re t-&s en$'le% to pr$)ti)e it $n% profit 'y its &se.TJ+,K T-e p$tent l$. -$s $ t-ree2fol% p&rpose: Sfirst, p$tent l$. see5s to foster $n% re.$r% invention7 se)on%, it promotes %is)los&res of inventions to stim&l$te f&rt-er innov$tion $n% to permit t-e p&'li) to pr$)ti)e t-e invention on)e t-e p$tent e=pires7 t-ir%, t-e strin1ent reC&irements for p$tent prote)tion see5 to ens&re t-$t i%e$s in t-e p&'li) %om$in rem$in t-ere for t-e free &se of t-e p&'li).TJ+@K It is only $fter $n e=-$&stive e=$min$tion 'y t-e p$tent offi)e t-$t $ p$tent is iss&e%. S&)- $n in2%eptinvesti1$tion is reC&ire% 'e)$&se Sin re.$r%in1 $ &sef&l invention, t-e ri1-ts $n% .elf$re of t-e )omm&nity m&st 'e f$irly %e$lt .it- $n% effe)tively 1&$r%e%. To t-$t en%, t-e prereC&isites to o't$inin1 $ p$tent $re stri)tly o'serve% $n% .-en $ p$tent is iss&e%, t-e limit$tions on its e=er)ise $re eC&$lly stri)tly enfor)e%. To 'e1in .it-, $ 1en&ine invention or %is)overy m&st 'e %emonstr$te% lest in t-e )onst$nt %em$n% for ne. $ppli$n)es, t-e -e$vy -$n% of tri'&te 'e l$i% on e$)- sli1-t te)-nolo1i)$l $%v$n)e in $rt.TJ+*K T-ere is no s&)- s)r&tiny in t-e )$se of )opyri1-ts nor $ny noti)e p&'lis-e% 'efore its 1r$nt to t-e effe)t t-$t $ person is )l$imin1 t-e )re$tion of $ .or5. T-e l$. )onfers t-e )opyri1-t from t-e moment of )re$tion J;3K $n% t-e )opyri1-t )ertifi)$te is iss&e% &pon re1istr$tion .it- t-e N$tion$l !i'r$ry of $ s.orn e4=parte )l$im of )re$tion. T-erefore, not -$vin1 1one t-ro&1- t-e $r%&o&s e=$min$tion for p$tents, t-e petitioner )$nnot e=)l&%e ot-ers from t-e m$n&f$)t&re, s$le or )ommer)i$l &se of t-e li1-t 'o=es on t-e sole '$sis of its )opyri1-t )ertifi)$te over t-e te)-ni)$l %r$.in1s. St$te% ot-er.ise, .-$t petitioner see5s is e=)l&sivity .it-o&t $ny opport&nity for t-e p$tent offi)e (I#O) to s)r&tiniBe t-e li1-t 'o=Qs eli1i'ility $s $ p$tent$'le invention. T-e irony -ere is t-$t, -$% petitioner se)&re% $ p$tent inste$%, its e=)l&sivity .o&l% -$ve 'een for +, ye$rs only. &t t-ro&1- t-e simplifie% pro)e%&re of )opyri1-t2re1istr$tion .it- t-e N$tion$l !i'r$ry L .it-o&t &n%er1oin1 t-e ri1or of %efen%in1 t-e p$tent$'ility of its invention 'efore t-e I#O

$n% t-e p&'li) L t-e petitioner .o&l% 'e prote)te% for ?3 ye$rs. T-is sit&$tion )o&l% not -$ve 'een t-e intention of t-e l$.. In t-e oft2)ite% )$se of +a*er vs. SeldenJ;+K, t-e Unite% St$tes S&preme Co&rt -el% t-$t onl( t&e e4pression of an idea is protected b( cop(ri)&t" not t&e idea itself . In t-$t )$se, t-e pl$intiff -el% t-e )opyri1-t of $ 'oo5 .-i)e=po&n%e% on $ ne. $))o&ntin1 system -e -$% %evelope%. T-e p&'li)$tion ill&str$te% 'l$n5 forms of le%1ers &tiliBe% in s&)- $ system. T-e %efen%$nt repro%&)e% forms simil$r to t-ose ill&str$te% in t-e pl$intiffQs )opyri1-te% 'oo5. T-e US S&preme Co&rt r&le% t-$t: ST-ere is no %o&'t t-$t $ .or5 on t-e s&'6e)t of 'oo525eepin1, t-o&1- only e=pl$n$tory of .ell 5no.n systems, m$y 'e t-e s&'6e)t of $ )opyri1-t7 '&t, t-en, it is )l$ime% only $s $ 'oo5. = = =. &t t-ere is $ )le$r %istin)tion 'et.een t-e 'oo5s, $s s&)-, $n% t-e $rt, .-i)- it is, inten%e% to ill&str$te. T-e mere st$tement of t-e proposition is so evi%ent t-$t it reC&ires -$r%ly $ny $r1&ment to s&pport it. T-e s$me %istin)tion m$y 'e pre%i)$te% of every ot-er $rt $s .ell $s t-$t of 'oo55eepin1. A tre$tise on t-e )omposition $n% &se of me%i)ines, 'e t-ey ol% or ne.7 on t-e )onstr&)tion $n% &se of plo&1-s or .$t)-es or )-&rns7 or on t-e mi=t&re $n% $ppli)$tion of )olors for p$intin1 or %yein17 or on t-e mo%e of %r$.in1 lines to pro%&)e t-e effe)t of perspe)tive, .o&l% 'e t-e s&'6e)t of )opyri1-t7 '&t no one .o&l% )onten% t-$t t-e )opyri1-t of t-e tre$tise .o&l% 1ive t-e e=)l&sive ri1-t to t-e $rt or m$n&f$)t&re %es)ri'e% t-erein. T-e )opyri1-t of t-e 'oo5, if not pir$te% from ot-er .or5s, .o&l% 'e v$li% .it-o&t re1$r% to t-e novelty or .$nt of novelty of its s&'6e)t m$tter. T-e novelty of t-e $rt or t-in1 %es)ri'e% or e=pl$ine% -$s not-in1 to %o .it- t-e v$li%ity of t-e )opyri1-t. To 1ive to t-e $&t-or of t-e 'oo5 $n e=)l&sive property in t-e $rt %es)ri'e% t-erein, .-en no e=$min$tion of its novelty -$s ever 'een offi)i$lly m$%e, .o&l% 'e $ s&rprise $n% $ fr$&% &pon t-e p&'li). T-$t is t-e provin)e of letters p$tent, not of )opyri1-t. T-e )l$im to $n invention of %is)overy of $n $rt or m$n&f$)t&re m&st 'e s&'6e)te% to t-e e=$min$tion of t-e #$tent Offi)e 'efore $n e=)l&sive ri1-t t-erein )$n 'e o't$ine%7 $n% $ p$tent from t-e 1overnment )$n only se)&re it. T-e %ifferen)e 'et.een t-e t.o t-in1s, letters p$tent $n% )opyri1-t, m$y 'e ill&str$te% 'y referen)e to t-e s&'6e)ts 6&st en&mer$te%. T$5e t-e )$se of me%i)ines. Cert$in mi=t&res $re fo&n% to 'e of 1re$t v$l&e in t-e -e$lin1 $rt. If t-e %is)overer .rites $n% p&'lis-es $ 'oo5 on t-e s&'6e)t ($s re1&l$r p-ysi)i$ns 1ener$lly %o), -e 1$ins no e=)l&sive ri1-t to t-e m$n&f$)t&re $n% s$le of t-e me%i)ine7 -e 1ives t-$t to t-e p&'li). If -e %esires to $)C&ire s&)- e=)l&sive ri1-t, -e m&st o't$in $ p$tent for t-e mi=t&re $s $ ne. $rt, m$n&f$)t&re or )omposition of m$tter. He m$y )opyri1-t -is 'oo5, if -e ple$ses7 '&t t-$t only se)&res to -im t-e e=)l&sive ri1-t of printin1 $n% p&'lis-in1 -is 'oo5. So of $ll ot-er inventions or %is)overies. T-e )opyri1-t of $ 'oo5 on perspe)tive, no m$tter -o. m$ny %r$.in1s $n% ill&str$tions it m$y )ont$in, 1ives no e=)l&sive ri1-t to t-e mo%es of %r$.in1 %es)ri'e%, t-o&1- t-ey m$y never -$ve 'een 5no.n or &se% 'efore. y p&'lis-in1 t-e 'oo5 .it-o&t 1ettin1 $ p$tent for t-e $rt, t-e l$tter is 1iven to t-e p&'li). = = = No., .-ilst no one -$s $ ri1-t to print or p&'lis- -is 'oo5, or $ny m$teri$l p$rt t-ereof, $s $ 'oo5 inten%e% to )onvey instr&)tion in t-e $rt, $ny person m$y pr$)ti)e $n% &se t-e $rt itself .-i)- -e -$s %es)ri'e% $n% ill&str$te% t-erein. T-e &se of t-e $rt is $ tot$lly %ifferent t-in1 from $ p&'li)$tion of t-e 'oo5 e=pl$inin1 it. T-e )opyri1-t of $ 'oo5 on 'oo55eepin1 )$nnot se)&re t-e e=)l&sive ri1-t to m$5e, sell $n% &se $))o&nt 'oo5s prep$re% &pon t-e pl$n set fortin s&)- 'oo5. 8-et-er t-e $rt mi1-t or mi1-t not -$ve 'een p$tente%, is $ C&estion, .-i)- is not 'efore &s. It .$s not p$tente%, $n% is open $n% free to t-e &se of t-e p&'li). An%, of )o&rse, in &sin1 t-e $rt, t-e r&le% lines $n% -e$%in1s of $))o&nts m&st ne)ess$rily 'e &se% $s in)i%ent to it. T-e pl$&si'ility of t-e )l$im p&t for.$r% 'y t-e )ompl$in$nt in t-is )$se $rises from $ )onf&sion of i%e$s pro%&)e% 'y t-e pe)&li$r n$t&re of t-e $rt %es)ri'e% in t-e 'oo5s, .-i)- -$ve 'een m$%e t-e s&'6e)t of )opyri1-t. In %es)ri'in1 t-e $rt, t-e ill&str$tions $n% %i$1r$ms employe% -$ppene% to )orrespon% more )losely t-$n &s&$l .it- t-e $)t&$l .or5 performe% 'y t-e oper$tor .-o &ses t-e $rt. = = = T-e %es)ription of t-e $rt in $ 'oo5, t-o&1- entitle% to t-e 'enefit of )opyri1-t, l$ys no fo&n%$tion for $n e=)l&sive )l$im to t-e $rt itself. T-e o'6e)t of t-e one is e=pl$n$tion7 t-e o'6e)t of

t-e ot-er is &se. T-e former m$y 'e se)&re% 'y )opyri1-t. T-e l$tter )$n only 'e se)&re%, if it )$n 'e se)&re% $t $ll, 'y letters p$tent.T (&n%ers)orin1 s&pplie%) ON THE ISSUE O" TRA(EMARD IN"RINGEMENT T-is iss&e )on)erns t-e &se 'y respon%ents of t-e m$r5 S#oster A%sT .-i)- petitionerQs presi%ent s$i% .$s $ )ontr$)tion of Sposter $%vertisin1.T # I ( .$s $'le to se)&re $ tr$%em$r5 )ertifi)$te for it, '&t one .-ere t-e 1oo%s spe)ifie% .ere Sst$tioneries s&)- $s letter-e$%s, envelopes, )$llin1 )$r%s $n% ne.sletters.T J;;K #etitioner $%mitte% it %i% not )ommer)i$lly en1$1e in or m$r5et t-ese 1oo%s. On t-e )ontr$ry, it %e$lt in ele)tri)$lly oper$te% '$)5lit $%vertisin1 &nits $n% t-e s$le of $%vertisin1 sp$)es t-ereon, .-i)-, -o.ever, .ere not $t $ll spe)ifie% in t-e tr$%em$r5 )ertifi)$te. Un%er t-e )ir)&mst$n)es, t-e Co&rt of Appe$ls )orre)tly )ite% .aber)e %nc. vs. %ntermediate Appellate Co$rt, J;<K .-ere .e, invo5in1 Se)tion ;3 of t-e ol% Tr$%em$r5 !$., r&le% t-$t St-e )ertifi)$te of re1istr$tion iss&e% 'y t-e (ire)tor of #$tents )$n )onfer (&pon petitioner) t-e e=)l&sive ri1-t to &se its o.n sym'ol onl( to t&ose )oods specified in t&e certificate, s&'6e)t to $ny )on%itions $n% limit$tions spe)ifie% in t-e )ertifi)$te = = =. One .-o -$s $%opte% $n% &se% $ tr$%em$r5 on -is 1oo%s does not prevent t&e adoption and $se of t&e same trademar* b( ot&ers for prod$cts w&ic& are of a different description.TJ;4K .aber)e" %nc. .$s )orre)t $n% .$s in f$)t re)ently reiter$te% in Canon 5ab$s&i*i 5ais&a vs. Co$rt of Appeals.J;?K Ass&min1 ar)$endo t-$t S#oster A%sT )o&l% v$li%ly C&$lify $s $ tr$%em$r5, t-e f$il&re of # I ( to se)&re $ tr$%em$r5 re1istr$tion for spe)ifi) &se on t-e li1-t 'o=es me$nt t-$t t-ere )o&l% not -$ve 'een $ny tr$%em$r5 infrin1ement sin)e re1istr$tion .$s $n essenti$l element t-ereof. ON THE ISSUE O" UN"AIR COM#ETITION If $t $ll, t-e )$&se of $)tion s-o&l% -$ve 'een for &nf$ir )ompetition, $ sit&$tion .-i)- .$s possi'le even if # I ( -$% no re1istr$tion.J;0K Ho.ever, .-ile t-e petitionerQs )ompl$int in t-e RTC $lso )ite% &nf$ir )ompetition, t-e tri$l )o&rt %i% not fin% priv$te respon%ents li$'le t-erefor. #etitioner %i% not $ppe$l t-is p$rti)&l$r point7 -en)e, it )$nnot no. revive its )l$im of &nf$ir )ompetition. &t even %isre1$r%in1 pro)e%&r$l iss&es, .e nevert-eless )$nnot -ol% respon%ents 1&ilty of &nf$ir )ompetition. y t-e n$t&re of t-in1s, t-ere )$n 'e no &nf$ir )ompetition &n%er t-e l$. on )opyri1-ts $lt-o&1- it is $ppli)$'le to %isp&tes over t-e &se of tr$%em$r5s. Even $ n$me or p-r$se in)$p$'le of $ppropri$tion $s $ tr$%em$r5 or tr$%en$me m$y, 'y lon1 $n% e=)l&sive &se 'y $ '&siness (s&)- t-$t t-e n$me or p-r$se 'e)omes $sso)i$te% .it- t-e '&siness or pro%&)t in t-e min% of t-e p&r)-$sin1 p&'li)), 'e entitle% to prote)tion $1$inst &nf$ir )ompetition. J;,K In t-is )$se, t-ere .$s no evi%en)e t-$t # I (Qs &se of S#oster A%sT .$s %istin)tive or .ell25no.n. As note% 'y t-e Co&rt of Appe$ls, petitionerQs e=pert .itnesses -imself -$% testifie% t-$t S U#oster A%sQ .$s too 1eneri) $ n$me. So it .$s %iffi)&lt to i%entify it .it- $ny )omp$ny, -onestly spe$5in1.T J;@K T-is )r&)i$l $%mission 'y its o.n e=pert .itness t-$t S#oster A%sT )o&l% not 'e $sso)i$te% .it- # I ( s-o.e% t-$t, in t-e min% of t-e p&'li), t-e 1oo%s $n% servi)es )$rryin1 t-e tr$%em$r5 S#oster A%sT )o&l% not 'e %istin1&is-e% from t-e 1oo%s $n% servi)es of ot-er entities. T-is f$)t $lso prevente% t-e $ppli)$tion of t-e %o)trine of se)on%$ry me$nin1. S#oster A%sT .$s 1eneri) $n% in)$p$'le of 'ein1 &se% $s $ tr$%em$r5 'e)$&se it .$s &se% in t-e fiel% of poster $%vertisin1, t-e very '&siness en1$1e% in 'y petitioner. SSe)on%$ry me$nin1T me$ns t-$t $ .or% or p-r$se ori1in$lly in)$p$'le of e=)l&sive $ppropri$tion .it- referen)e to $n $rti)le in t-e m$r5et ('e)$&se it is 1eo1r$p-i)$lly or ot-er.ise %es)riptive) mi1-t nevert-eless -$ve 'een &se% for so lon1 $n% so e=)l&sively 'y one pro%&)er .it- referen)e to -is $rti)le t-$t, in t-e tr$%e $n% to t-$t 'r$n)- of t-e p&r)-$sin1 p&'li), t-e .or% or p-r$se -$s )ome to me$n t-$t t-e $rti)le .$s -is property.J;*K T-e $%mission 'y petitionerQs o.n e=pert .itness t-$t -e -imself )o&l% not $sso)i$te S#oster A%sT .itpetitioner # I ( 'e)$&se it .$s Stoo 1eneri)T %efinitely pre)l&%e% t-e $ppli)$tion of t-is e=)eption. H$vin1 %is)&sse% t-e most import$nt $n% )riti)$l iss&es, .e see no nee% to 'el$'or t-e rest.All tol%, t-e Co&rt fin%s no reversi'le error )ommitte% 'y t-e Co&rt of Appe$ls .-en it reverse% t-e Re1ion$l Tri$l Co&rt of M$5$ti City.

8HERE"ORE, t-e petition is -ere'y (ENIE( $n% t-e %e)ision of t-e Co&rt of Appe$ls %$te% M$y ;;, ;33+ is A""IRME( in toto. SO OR(ERE(.P$no" 1C&airman2" Pan)aniban" Sandoval=>$tierre'" $n% Carpio=,orales" JJ." )on)&r.