G.R. No. 213875 - Diaz vs. People

Petitioner Gloria Maris Shark's Fin Restaurant, Inc. (Gloria Maris) is a corporation engaged in the restaurant business.
Respondent Pacifico Q. Lim (Lim) is engaged in construction and also in the restaurant business.

Before Gloria Maris was established, Lim claimed he conceived the name "Gloria Maris Shark's Fin Restaurant" and its logo, a shark's fin enclosed in an irregularly shaped plate.
In 1993, Lim proposed a restaurant concept to owners of a restaurant located in the Cultural Center of the Philippines (CCP) complex, which was allegedly about to close.
On January 26, 1994, "Gloriamaris Shark's Fin Restaurant Inc." was incorporated, with incorporators including Dominador B. Menguito, Pedro O. Manalo, Lorenzo Q. Dy, Edmundo L. Tan, and Pacifico Q. Lim.

Gloria Maris claims to have hired a graphic artist who prepared a signature trademark design of "Gloria Maris," approved by the incorporators.
The Board of Directors allegedly authorized Lim to register the trademark with the Intellectual Property Office (IPO).
However, the trademark registrations occurred only in 2005, over 10 years after SEC registration, and were registered under Lim's name:

Gloria Maris discovered the trademarks were registered in Lim's name, not the corporation's, after Lim had left the company.
On December 4, 2009, Gloria Maris filed three petitions to cancel the Lim-registered trademarks.

On February 23, 2012, the IPO-BLA dismissed Gloria Maris's petitions for cancellation.
The BLA found Lim was the creator of the marks prior to Gloria Maris's incorporation.
The BLA relied on Lim's evidence, including the affidavit of graphic artist Joey Rodriguez, stating Lim conceived the logo and design concepts in 1993.
Gloria Maris failed to present evidence showing Lim was authorized to register the trademarks in the company’s name.
The BLA noted no opposition from Gloria Maris when the trademarks were published.

On August 6, 2019, the ODG reversed the BLA decisions and ordered cancellation of Lim's registrations.
The ODG found Gloria Maris had used the name "Gloria Maris" as a corporate name and business identity for more than 10 years before Lim's registrations.
ODG observed that Rodriguez's affidavit did not prove Lim coined the name "Gloria Maris."
It found Lim’s registration and use of the marks was unlawful.

On March 18, 2022, the CA reversed the ODG decisions and reinstated the BLA rulings.
CA held Lim’s right to due process was not violated; Gloria Maris failed to prove Lim’s registration was unlawful.
CA deemed Gloria Maris’ evidence insufficient to overcome Lim’s prima facie ownership under the registrations.
CA applied laches, finding Gloria Maris delayed its action despite knowledge of Lim’s use.
CA denied Gloria Maris’ motion for reconsideration on December 19, 2022.

Gloria Maris filed a Rule 45 Petition for Review on Certiorari before the Supreme Court challenging the CA ruling.

Whether the Court of Appeals erred in reversing the Office of the Director General’s cancellation orders and reinstating the Bureau of Legal Affairs’ dismissal decisions.
Whether Lim's registration of the "Gloria Maris" trademarks was made in bad faith and thus subject to cancellation.
Whether Gloria Maris is estopped by laches from assailing the validity of Lim’s trademark registrations.