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Intellectual Property Law

1. Distinguish trademark infringement from unfair competition.

Trademark infringement is the unauthorized use of a trademark while unfair competition is the
passing off of ones goods as those of another;
In trademark infringement, fraudulent intent is unnecessary while in unfair competition, fraudulent
intent is essential;
In trademark infringement, the prior registration of the trademark is a prerequisite to the action, while
in unfair competition, registration is not necessary.

2. What is the doctrine of equivalents?

The doctrine of equivalents provides that an infringement takes place when a device appropriates a prior
invention by incorporating its innovative concept, and although with some modification and change, performs
substantially the same function in substantially the same way to achieve the same result.

3. Melano is the trademark owner of Ang Tibay in the manufacture and sale of slippers and shoes.
Subsequently, he discovered that Molino is also using the same mark on his own line of business of
manufacturing and selling of shirts. An action for trademark infringement was instituted by Melano against
Molino. Molino contends that he cannot be held liable for trademark infringement because Ang Tibay is a non-
registrable mark because it is a descriptive term. Is he correct? NO. The phrase Ang Tibay is an exclamation
denoting admiration of strength or durability. For instance, one who tries hard but fails to break an object
exclaims, Ang Tibay! (How strong!). It may also be used in a sentence thus, Ang tibay ng sapatos mo!
(How durable your shoes are!). The phrase never used adjectively to define or describe an object. One does
not say, ang tibay sapatos or sapatos ang tibay to mean durable shoes, but matibay na sapatos or
sapatos na matibay. Thus, Ang Tibay is not a descriptive term within the meaning of the trademark law but
rather a fanciful or coined phrase which may properly and legally be appropriated as a trademark or
tradename. (Ang v. Teodoro, G.R. No. L-48226, December 14, 1942)

4. Enumerate the economic rights granted to the copyright holder.

The economic rights granted to the copyright holder which consist of the exclusive right to carry out, authorize,
or prevent the following acts:

Reproduction of the work or substantial portion of the work;

Dramatization, translation, adaptation, abridgment, arrangement or other transformation of the work;
The first public distribution of the original and each copy of the work by sale or other forms of transfer
of ownership;
Rental of the original or a copy of an audiovisual or cinematographic work, a work embodied in a
sound recording, a computer program, a compilation of data and other materials or a musical work in a
graphic form, irrespective of the ownership of the original or the copy which is the subject of the rental;
Public display of the original or a copy of the work;
Public performance of the work; and
Other communication to the public of the work. (Section 177 of RA 8293)

5. What are the features of copyright which differentiate it from trademark and patent?

Unlike trademark and patent, it need not be registered to be protected; and

Only in copyright that moral rights are expressly recognized and accorded to the creator.

1. Explain the right of succession of corporation.

The right of succession of a corporation provides that it has a capacity of continuous existence irrespective of
the death, withdrawal, insolvency, or incapacity of the individual stockholders or members and regardless of
the transfer of their interest or shares of stock.


1. What are the essential elements of quasi-banking?

The essential elements of quasi-banking are:

Borrowing of funds for the borrowers own account;

Twenty (20) or more lenders at any one time;
Methods of borrowing are issuance, endorsement or acceptance of debt instruments of any kind, or
otherwise than deposits ; and
The purpose of which is to (1) relend, or (2) purchase receivables or other obligations. (Sec. X234.1 of
the MORB)