Title
Supreme Court
Prosource International, Inc. vs. Horphag Research Management SA
Case
G.R. No. 180073
Decision Date
Nov 25, 2009
Petitioner's use of "PCO-GENOLS" infringed respondent's "PYCNOGENOL" trademark due to confusing similarity under the Dominancy Test, upheld by courts; attorney's fees awarded.

Case Digest (G.R. No. 180073)
Expanded Legal Reasoning Model

Facts:

  • Parties and Marks
    • Petitioner: Prosource International, Inc., a Philippine corporation distributing food supplements.
    • Respondent: Horphag Research Management SA, a Swiss corporation and registered owner of the trademark PYCNOGENOL.
  • Chronology of Events
    • Since 1996, petitioner marketed a food supplement under the mark PCO-GENOLS.
    • June 2, 2000: Respondent sent a demand letter to petitioner to cease use of PCO-GENOLS.
    • June 19, 2000: Without notifying respondent, petitioner withdrew PCO-GENOLS from the market and adopted the mark PCO-PLUS.
    • August 22, 2000: Respondent filed a Complaint for infringement of trademark (PYCNOGENOL), seeking a preliminary injunction, damages, and attorney’s fees.
    • Petitioner answered, denying infringement, challenging respondent’s standing, and filing a counterclaim for exemplary damages and attorney’s fees.
  • Procedural History
    • Pre-trial admissions:
      • Respondent’s mark PYCNOGENOL registered with IPO but not with BFAD.
      • Petitioner’s PCO-GENOLS registered with BFAD but not IPO.
      • Petitioner ceased use of PCO-GENOLS as of June 19, 2000.
    • RTC Decision (Jan. 16, 2006): Found confusing similarity between PYCNOGENOL and PCO-GENOLS under the Dominancy Test; held petitioner liable for infringement from 1996 to June 2000; awarded attorney’s fees of ₱50,000; denied petitioner’s counterclaim.
    • CA Decision (July 27, 2007) and Resolution (Oct. 15, 2007): Affirmed the RTC’s findings and award of attorney’s fees.
    • Petition for review on certiorari under Rule 45 filed by petitioner before the Supreme Court.

Issues:

  • Trademark Infringement
    • Whether PCO-GENOLS is confusingly similar to PYCNOGENOL, constituting trademark infringement.
  • Attorney’s Fees
    • Whether the award of attorney’s fees (₱50,000) in favor of respondent is proper.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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