Title
Tan vs. Bausch and Lomb, Inc.
Case
G.R. No. 148420
Decision Date
Dec 15, 2005
Petitioners charged with trademark infringement for counterfeit RAY BAN sunglasses; jurisdictional dispute between RTC and MTCC resolved in favor of RTC, citing administrative orders. Procedural lapses excused for substantial justice.

Case Summary (G.R. No. 148420)

Background of the Case

On April 8, 1997, an information was filed against the petitioners for allegedly violating Article 189 of the Revised Penal Code (RPC) by distributing counterfeit Ray-Ban sunglasses. Bausch & Lomb, Inc., represented by State Prosecutor Zenaida M. Lim, alleged that the petitioners caused public deception by selling these counterfeit goods, thereby harming the brand's reputation.

Procedural History

On January 21, 1998, the respondent moved to transfer the case to Branch 9 of RTC Cebu City, which was designated as a special court to handle intellectual property rights violations under Administrative Order No. 113-95. The petitioners subsequently filed a motion to quash the information, arguing that the RTC lacked jurisdiction, as the penalties associated with the alleged offense fell within the jurisdiction of the Municipal Trial Court in Cities (MTCC).

Trial Court's Decision

The RTC denied the respondent's motion to transfer the case and granted the motion to quash, concluding that the alleged violation pertained to a jurisdictional area limited to the MTCC. The court held that the relevant administrative orders could not override the explicit jurisdiction established by Batas Pambansa Blg. 129.

Appeal and Court of Appeals Ruling

Respondent Bausch & Lomb filed a petition for certiorari in the Court of Appeals, one day late, which raised procedural concerns. Despite the late filing, the appellate court exercised its discretion to allow the petition and ultimately reversed the RTC ruling, transferring the case to Branch 9 of the RTC.

Issues on Review

The petitioners challenged the appellate court's decision on two key grounds: the alleged failure to dismiss a petition fraught with procedural infirmities, and the claim that the RTC lacked jurisdiction to hear the case concerning unfair competition under Article 189 of the RPC.

Supreme Court's Conclusion

The Supreme Court determined there was no merit to the petitioners' claims. While acknowledging procedural lapses by the respondent, it ruled that equitable considerations warranted the acceptance of the certiorari petition. The Court emphasized the importance of substantial justice over procedural technicalities, stating that a petition for certiorari may be considered valid without prior motion for reconsideration under certain conditions, including the patent nullity of a lower court order.

Jurisdictional Authority

Analyzing the jurisdiction of the RTC, the Court referenced Section 5(5) of the 1987 Constitution, which empowers the Supreme Court to establish

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