Title
Unilever Philippines, Inc. vs. Tan
Case
G.R. No. 179367
Decision Date
Jan 29, 2014
NBI seized counterfeit shampoo from Paul D. Tan's office and warehouse. DOJ and CA dismissed charges, but SC ruled probable cause existed, ordering prosecution for unfair competition.
A

Case Summary (G.R. No. 179367)

Factual Antecedents

On January 17, 2002, the NBI applied for search warrants targeting a warehouse and an office believed to be owned by the respondent in Marikina City. The application identified the respondent as potentially involved in the sale of counterfeit Unilever shampoo products, violating various provisions of the Intellectual Property Code of the Philippines (R.A. No. 8293). Judge Antonio M. Eugenio, Jr. granted the search warrants, allowing the NBI to seize numerous items, including various sachets of shampoo and hair conditioner from both the office and the warehouse. Following the seizure, the NBI filed a complaint against the respondent for unfair competition.

Respondent's Defense

In his counter-affidavit, the respondent denied ownership of the goods, asserting his identity as "Paul D. Tan," who operates a business selling leather goods under the name "Probest International Trading." He claimed that the shampoo sachets were genuine products intended for personal use and maintained that he did not possess counterfeit goods or any business connections to the alleged warehouse operating with such products.

Rulings of the DOJ

The State Prosecutor dismissed the criminal complaint on December 18, 2002, due to insufficient evidence to substantiate the respondent's direct involvement in the alleged crime. The Prosecutor noted the absence of proof linking Tan to the ownership of or operations at the alleged warehouse. The dismissal was upheld by the Acting Secretary of Justice in a later resolution, despite the petitioner’s subsequent appeals, including a motion for reconsideration.

Rulings of the Court of Appeals (CA)

On June 18, 2007, the Court of Appeals dismissed the petition for certiorari and affirmed the DOJ's resolution, finding that the evidence presented was insufficient to establish acts of unfair competition against the respondent. The CA concluded that the Secretary of Justice had not gravely abused discretion in affirming the lower findings.

The Petition

The petitioner challenged the CA's decision, arguing that it misjudged the weight of evidence indicating the respondent's ownership and handling of counterfeit products. The petition underscored that even acknowledgments of non-ownership of the warehouse should not absolve Tan, given the overwhelming evidence suggesting his control over the counterfeit goods.

The Issue

The core legal question presented was whether the CA committed an error in upholding the Secretary of Justice's finding of no probable cause to indict the respondent for unfair competition under R.A. No. 8293.

The Court’s Ruling

The Supreme Court determined that the petitioner had merit in its assertions, indicating that the standards for establishing probable cause necessitate merely a reasonable belief that a crime has been commit

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