Case Summary (G.R. No. 149907)
Factual Background
On 14 August 2000, agents of the National Bureau of Investigation and inspectors of the BFAD executed Search Warrant No. 00-43 at petitioner Roma Drug, a registered sole proprietorship owned by Romeo Rodriguez, located in San Matias, Guagua, Pampanga. The raiding team seized several imported pharmaceutical products, including Augmentin (375mg) tablets, Orbenin (500mg) capsules, Amoxil (250mg) capsules and Ampiclox (500mg). The seized medicines were manufactured by the foreign parent of the local distributor then known as SmithKline Beecham Research Limited, and were imported directly from abroad rather than purchased from the local SmithKline distributor. Roma Drug was one of six drug stores raided at roughly the same time following a request made by SmithKline.
Investigative and Charging Events
Following the seizure, the NBI filed a complaint against Rodriguez with the Office of the Provincial Prosecutor in San Fernando, Pampanga, charging him with violation of Section 4 of Republic Act No. 8203 in relation to Sections 3 and 5. The classification of the seized medicines as “counterfeit drugs” rested solely on their status as imported products not acquired through the Philippine-registered patent or trademark owner. There was no allegation that the drugs were adulterated or mislabeled, and the seized items were identical in content to their Philippine-registered counterparts.
Preliminary Challenge and Prosecutorial Action
During the preliminary investigation, Rodriguez mounted a constitutional challenge to the SLCD. Assistant Provincial Prosecutor Celerina C. Pineda, however, did not resolve the constitutional question and issued a Resolution dated 17 August 2001 recommending that Rodriguez be charged under Section 4(a) of the SLCD. Provincial Prosecutor Jesus Y. Manarang approved the recommendation.
Petition for Prohibition and Temporary Restraining Order
Petitioners sought a writ of prohibition to restrain the Regional Trial Court of Guagua, Pampanga, the Provincial Prosecutor and the BFAD from further prosecuting Rodriguez, and prayed that Sections 3(b)(3), 4 and 5 of Republic Act No. 8203 be declared unconstitutional. The petition asserted violations of the equal protection clause and of Section 11, Article XIII and Section 15, Article II of the 1987 Constitution. By Resolution dated 15 October 2001, the Court issued a Temporary Restraining Order enjoining the RTC from proceeding against Rodriguez, and barring the BFAD, the NBI and Glaxo Smithkline from prosecuting the petitioners.
Opposing Arguments
Glaxo Smithkline and the Office of the Solicitor General opposed the petition. Glaxo Smithkline urged the presumption of constitutionality of the SLCD, argued that Section 15, Article II and Section 11, Article XIII are non-self-executing and thus do not furnish a private cause of action, and contended that Section 11 could not be applied to oppress property rights of legitimate manufacturers and distributors. The Office of the Solicitor General framed the controversy as one of legislative policy wisdom outside the proper scope of judicial review and likewise relied on the presumption that the statute did not present a clear and unequivocal breach of the Constitution.
Mootness by Subsequent Legislation
The Court observed that the constitutional questions were mooted by the passage of Republic Act No. 9502 in 2008. Section 7 of Republic Act No. 9502 amended Section 72 of the Intellectual Property Code to provide that the owner of a patent “has no right to prevent third parties” from certain acts, and expressly provided that, with regard to drugs and medicines, the limitation on patent rights applies after a drug or medicine has been introduced in the Philippines or anywhere else in the world by the patent owner or any party authorized to use the invention. The amendment further provided that “the right to import the drugs and medicines contemplated in this section shall be available to any government agency or any private third party.” The Court noted that the Implementing Rules to Republic Act No. 9502, promulgated 4 November 2008, confirmed this unqualified right for private third parties.
Statutory Conflict and Principles of Construction
The Court applied established principles of statutory construction. It concluded that the SLCD’s classification of “unregistered imported drugs” as “counterfeit drugs,” together with attendant criminal penalties, were irreconcilably inconsistent with the later, unqualified grant in Republic Act No. 9502 permitting third parties to import such drugs. The Court reiterated that where a subsequent enactment covering the same subject reveals an intention to abrogate a prior act, the later law prevails. The Court cited authorities that a later statute cannot be reconciled with an earlier one where the effect of the later law nullifies the reason or purpose of the earlier act and that legis posteriors priores contrarias abrogant.
Alternative Constitutional Observations
The Court observed that, had it reached the constitutional issue, it would have found substantial doubt as to the validity of the challenged SLCD provisions. The Court reasoned that the statute criminalized importation of unregistered drugs regardless of purpose, including situations where the medicine is necessary to preserve life, where the drug is unavailable in the Philippines, or where relatives import medicine for i
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Case Syllabus (G.R. No. 149907)
Parties and Posture
- Roma Drug and Romeo Rodriguez were the petitioners seeking a writ of prohibition to halt criminal prosecution for alleged violation of Republic Act No. 8203.
- The Regional Trial Court of Guagua, Pampanga, the Provincial Prosecutor of Pampanga, Bureau of Food and Drugs (BFAD), and Glaxo SmithKline were the respondents in the prohibition petition.
- The NBI filed the underlying complaint after a raid and seizure of medicines and the Office of the Provincial Prosecutor approved the filing of charges against Rodriguez.
- The Court issued a temporary restraining order on 15 October 2001 enjoining respondents from proceeding with prosecution and made that order the subject of the present petition.
Facts
- On 14 August 2000, NBI operatives and BFAD inspectors executed Search Warrant No. 00-43 and raided Roma Drug in San Matias, Guagua, Pampanga.
- The raiding team seized imported medicines including Augmentin (375 mg) tablets, Orbenin (500 mg) capsules, Amoxil (250 mg) capsules, and Ampiclox (500 mg).
- The seized products were manufactured by the foreign parent of local SmithKline, were imported directly from abroad, and were not purchased through the local authorized distributor.
- The seized drugs were materially identical in content to their Philippine-registered counterparts, and there was no allegation that they were adulterated or mislabeled.
- The raid occurred as one of several contemporaneous raids initiated upon request of SmithKline or its local affiliate.
Issues
- Whether prosecution of Rodriguez under Section 4 in relation to Sections 3 and 5 of Republic Act No. 8203 (the Special Law on Counterfeit Drugs) was proper.
- Whether Sections 3(b)(3), 4 and 5 of Republic Act No. 8203 violated the Constitution as contended by the petitioner.
- Whether subsequent legislation, specifically Rep. Act No. 9502, affected the viability of prosecution under the SLCD.
Contentions
- Petitioner argued that the challenged provisions violated the equal protection clause and contravened Section 11, Article XIII and Section 15, Article II of the 1987 Constitution by denying affordable access to essential medicines.
- Glaxo SmithKline asserted the presumption of constitutionality of the SLCD and contended that the cited constitutional provisions were not self-executing and did not invalidate the SLCD.
- The Office of the Solicitor General characterized the dispute as one of legislative policy wisdom and invoked the presumption of constitutionality in defending continued enforcement.
- Glaxo SmithKline argued that the SLCD protected legitimate property and registration rights of manufacturers and distribu