Title
Cagayan Valley Enterprises, Inc. vs. Court of Appeals
Case
G.R. No. 78413
Decision Date
Nov 8, 1989
LTI sued Cagayan for using its registered gin bottles without consent; court ruled in LTI's favor, affirming protection under RA 623, damages, and contempt for violating injunction.
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Case Digest (G.R. No. 78413)

Facts:

  1. Registration of Bottles: In 1953, La Tondena, Inc. (LTI) registered its 350 c.c. white flint bottles used for its gin product, "Ginebra San Miguel," with the Philippine Patent Office under Republic Act No. 623. The registration was renewed in 1974.
  2. Use of Registered Bottles by Cagayan: Cagayan Valley Enterprises, Inc. (Cagayan) purchased bottles bearing the marks "La Tondena, Inc." and "Ginebra San Miguel" from junk dealers and used them for its own liquor product, "Sonny Boy," without LTI's written consent.
  3. Legal Action by LTI: On November 10, 1981, LTI filed a complaint for injunction and damages against Cagayan, alleging violation of Section 2 of Republic Act No. 623, as amended. A temporary restraining order was issued on November 16, 1981, prohibiting Cagayan from using the registered bottles.
  4. Cagayan's Defenses: Cagayan argued that:
    • LTI failed to comply with Section 21 of Republic Act No. 166, which requires notice of registration.
    • Hard liquor is not covered under Republic Act No. 623, as it only applies to beverages like Coca-Cola and similar products.
    • The bottles used by Cagayan did not bear the words "property of," as required in LTI's registration.
  5. Trial Court Decision: The trial court ruled in favor of Cagayan, dismissing LTI's complaint and awarding damages to Cagayan.
  6. Court of Appeals Decision: The Court of Appeals reversed the trial court's decision, permanently enjoining Cagayan from using the registered bottles and awarding damages to LTI.

Issue:

  1. Whether LTI's failure to display the words "Reg. Phil. Pat. Off." on its bottles bars it from filing an injunction suit against Cagayan.
  2. Whether the omission of the words "property of" on the bottles removes them from the protection of Republic Act No. 623.
  3. Whether hard liquor is covered under the term "other lawful beverages" in Republic Act No. 623.
  4. Whether Cagayan acted in good faith in using the registered bottles.
  5. Whether the Court of Appeals erred in awarding damages to LTI.
  6. Whether Cagayan is guilty of contempt for violating the writ of preliminary injunction.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)


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