Source: http://lawlibrary.chanrobles.com/index.php?option=com_content&view=article&id=84202:59645&catid=1594&Itemid=566
Timestamp: 2019-04-24 23:48:07+00:00

Document:
G.R. No. 209843, March 25, 2015 - TAIWAN KOLIN CORPORATION, LTD., Petitioner, v. KOLIN ELECTRONICS CO., INC., Respondent.
TAIWAN KOLIN CORPORATION, LTD., Petitioner, v. KOLIN ELECTRONICS CO., INC., Respondent.
On February 29, 1996, Taiwan Kolin filed with the Intellectual Property Office (IPO), then Bureau of Patents, Trademarks, and Technology Transfer, a trademark application, docketed as Application No. 4-1996-106310, for the use of “KOLIN” on a combination of goods, including colored televisions, refrigerators, window-type and split-type air conditioners, electric fans and water dispensers. Said goods allegedly fall under Classes 9, 11, and 21 of the Nice Classification (NCL).
To digress a bit, Kolin Electronics’ “KOLIN” registration was, as it turns out, the subject of a prior legal dispute between the parties in Inter Partes Case No. 14-1998-00050 before the IPO. In the said case, Kolin Electronics’ own application was opposed by Taiwan Kolin, being, as Taiwan Kolin claimed, the prior registrant and user of the “KOLIN” trademark, having registered the same in Taipei, Taiwan on December 1, 1988. The Bureau of Legal Affairs of the IPO (BLA-IPO), however, did not accord priority right to Taiwan Kolin’s Taipei registration absent evidence to prove that it has already used the said mark in the Philippines as early as 1988. On appeal, the IPO Director General affirmed the BLA-IPO’s Decision. Taiwan Kolin elevated the case to the CA, but without injunctive relief, Kolin Electronics was able to register the “KOLIN” trademark on November 23, 2003 for its products.6 Subsequently, the CA, on July 31, 2006, affirmed7 the Decision of the Director General.
In view of all the foregoing, the instant Opposition is as, it is hereby SUSTAINED. Accordingly, application bearing Serial No. 4-1996-106310 for the mark “KOLIN” filed in the name of TAIWAN KOLIN., LTD. on February 29, 1996 for goods falling under Class 09 of the International Classification of Goods such as cassette recorder, VCD, woofer, amplifiers, camcorders and other audio/video electronic equipment, flat iron, vacuum cleaners, cordless handsets, videophones, facsimile machines, teleprinters, cellular phones, automatic goods vending machines and other electronic equipment is hereby REJECTED.
Let the file wrapper of “KOLIN”, subject of this case be forwarded to the Bureau of Trademarks (BOT) for appropriate action in accordance with this Decision.
Wherefore, premises considered, the appeal is hereby GRANTED. The Appellant’s Trademark Application No. 4-1996-106310 is hereby GIVEN DUE COURSE subject to the use limitation or restriction for the goods “television and DVD player”. Let a copy of this Decision as well as the trademark application and records be furnished and returned to the Director of the Bureau of Legal Affairs for appropriate action. Further, let the Director of the Bureau of Trademarks and the library of the Documentation, Information and Technology Transfer Bureau be furnished a copy of this Decision for information, guidance, and records purposes.
WHEREFORE, the appeal is GRANTED. The November 23, 2011 Decision of the Director General of the Intellectual Property Office in Inter Partes Case No. 14-2006-0096 is REVERSED and SET ASIDE. The September 17, 2007 Decision of the Bureau of Legal Affairs of the same office is REINSTATED.
The primordial issue to be resolved boils down to whether or not petitioner is entitled to its trademark registration of “KOLIN” over its specific goods of television sets and DVD players. Petitioner postulates, in the main, that its goods are not closely related to those of Kolin Electronics. On the other hand, respondent hinges its case on the CA’s findings that its and petitioner’s products are closely-related. Thus, granting petitioner’s application for trademark registration, according to respondent, would cause confusion as to the public.
in Hickok Manufacturing Co., Inc. vs. Court of Appeals and Santos Lim Bun Liong,26 we dismissed Hickok’s petition to cancel private respondent’s HICKOK trademark registration for its Marikina shoes as against petitioner’s earlier registration of the same trademark for handkerchiefs, briefs, belts and wallets.
In Khe vs. Lever Bros. Co.,33 soap and pomade, although non-competitive, were held to be similar or belong to the same class, since both are toilet articles.
Significantly, Kolin Electronics’ goods (automatic voltage regulator; converter; recharger; stereo booster; AC-DC regulated power supply; step-down transformer; and PA amplified AC-DC) and Taiwan Kolin’s television sets and DVD players are both classified under class 9 of the NICE agreement. At first glance, it is also evident that all these goods are generally described as electrical devices.x x x [T]he goods of both Kolin Electronics and Taiwan Kolin will inevitably be introduced to the public as “KOLIN” products and will be offered for sale in the same channels of trade. Contrary to Taiwan Kolin’s claim, power supply as well as audio and stereo equipment like booster and amplifier are not only sold in hardware and electrical shops. These products are commonly found in appliance stores alongside television sets and DVD players. With the present trend in today’s entertainment of having a home theater system, it is not unlikely to see a stereo booster, amplifier and automatic voltage regulator displayed together with the television sets and DVD players. With the intertwined use of these products bearing the identical “KOLIN” mark, the ordinary intelligent consumer would likely assume that they are produced by the same manufacturer.
The CA’s approach and reasoning to arrive at the assailed holding that the approval of petitioner’s application is likely to cause confusion or deceive fail to persuade.
Clearly then, it was erroneous for respondent to assume over the CA to conclude that all electronic products are related and that the coverage of one electronic product necessarily precludes the registration of a similar mark over another. In this digital age wherein electronic products have not only diversified by leaps and bounds, and are geared towards interoperability, it is difficult to assert readily, as respondent simplistically did, that all devices that require plugging into sockets are necessarily related goods.
It bears to stress at this point that the list of products included in Class 941 can be sub-categorized into five (5) classifications, namely: (1) apparatus and instruments for scientific or research purposes, (2) information technology and audiovisual equipment, (3) apparatus and devices for controlling the distribution and use of electricity, (4) optical apparatus and instruments, and (5) safety equipment.42 From this sub-classification, it becomes apparent that petitioner’s products, i.e., televisions and DVD players, belong to audiovisiual equipment, while that of respondent, consisting of automatic voltage regulator, converter, recharger, stereo booster, AC-DC regulated power supply, step-down transformer, and PA amplified AC-DC, generally fall under devices for controlling the distribution and use of electricity.
While both competing marks refer to the word “KOLIN” written in upper case letters and in bold font, the Court at once notes the distinct visual and aural differences between them: Kolin Electronics’ mark is italicized and colored black while that of Taiwan Kolin is white in pantone red color background. The differing features between the two, though they may appear minimal, are sufficient to distinguish one brand from the other.
Respondent has made much reliance on Arce & Sons, Chua Che, Ang, and Khe, oblivious that they involved common household items––i.e., biscuits and milk, cosmetics, clothes, and toilet articles, respectively––whereas the extant case involves luxury items not regularly and inexpensively purchased by the consuming public. In accord with common empirical experience, the useful lives of televisions and DVD players last for about five (5) years, minimum, making replacement purchases very infrequent. The same goes true with converters and regulators that are seldom replaced despite the acquisition of new equipment to be plugged onto it. In addition, the amount the buyer would be parting with cannot be deemed minimal considering that the price of televisions or DVD players can exceed today’s monthly minimum wage.In light of these circumstances, it is then expected that the ordinary intelligent buyer would be more discerning when it comes to deciding which electronic product they are going to purchase, and it is this standard which this Court applies here in in determining the likelihood of confusion should petitioner’s application be granted.
Finally, in line with the foregoing discussions, more credit should be given to the “ordinary purchaser.” Cast in this particular controversy, the ordinary purchaser is not the “completely unwary consumer” but is the “ordinarily intelligent buyer” considering the type of product involved.
On a final note, the policy according factual findings of courts a quo great respect, if not finality, is not binding where they have overlooked, misapprehended, or misapplied any fact or circumstance of weight and substance.54 So it must be here; the nature of the products involved materially affects the outcome of the instant case. A reversal of the appellate court’s Decision is then in order.
WHEREFORE, in view of the foregoing, the petition is hereby GRANTED. The Decision and the Resolution of the Court of Appeals in CA-G.R. SP No. 122565, dated April 30, 2013 and November 6, 2013, respectively, are hereby REVERSED and SET ASIDE. Accordingly, the Decision of the Intellectual Property Office Director General in Inter Partes Case No. 14-2006-00096, dated November 23, 2011, is hereby REINSTATED.
Peralta, Villarama, Jr., Reyes, and Jardeleza, JJ., concur.
1Rollo, pp. 47-58. Penned by Associate Justice Pedro B. Corales and concurred in by Associate Justices Sesinando E. Villon and Florito S. Macalino.
3 Filed on December 27, 2002.
7 Id. at 50; citing the Motion for Reconsideration filed by Taiwan Kolin before the CA in CA-G.R. SP No. 80641 entitled Taiwan Kolin Corporation, Ltd. v. Kolin Electronics Co., Inc., CA rollo, pp.854-868.
Section 131. Priority Right. - 131.1. An application for registration of a mark filed in the Philippines by a person referred to in Section 3, and who previously duly filed an application for registration of the same mark in one of those countries, shall be considered as filed as of the day the application was first filed in the foreign country.
10 Id. at 119-133. Penned by Director Estrellita Beltran-Abelardo.
(iii) If it nearly resembles such a mark as to be likely to deceive or cause confusion.
15 Id. at 64-71. Penned by Director General Ricardo R. Blancaflor.
18 Citing McDonald’s Corporationv. L.C. Big Mak Burger, Inc., G.R. No. 143993, August 18, 2004, 437 SCRA 10.
19 Sec. 138. Certificates of Registration. – A certificate of registration of a mark shall be prima facie evidence of the validity of the registration, the registrant’s ownership of the mark, and of the registrant’s exclusive right to use the same in connection with the goods or services and those that are related thereto specified in the certificate.
22 See <http://web2.wipo.int/nicepub/edition-20150101/classheadings/?pagination=no&lang=en&explanatory_notes=show> (visited February 13, 2015).
23 G.R. No. 154342, July 14, 2004, 434 SCRA 473, 505.
24 No. L-28744, April 29, 1971, 38 SCRA 480.
25 No. L-26676, July 30, 1982, 115 SCRA 472.
26 No. L-44707, August 31, 1982, 116 SCRA 388.
27Hickok Manufacturing Co., Inc. v. Court of Appeals and Santos Lim Bun Liong, No. L-44707, August 31, 1982, 116 SCRA 388, 390.
28 No. L-29971, August 31, 1982, 116 SCRA 336.
30 No. L-14761, January 28, 1961,1 SCRA 253.
31 No. L-18337, January 30, 1965, 13 SCRA 67.
32 74 Phil. 50 (1942).
33 49 O.G. 3891 (1941).
37 See also rollo, pp. 56-57.
38 Id. at 69; citing Esso Standard Eastern, Inc. v. Court of Appeals, supra note 28.
39 Supra note 23, at 510-511.
42 See (visited February 18, 2015).
43Diaz v. People, G.R. No. 180677, February 18, 2013, 691 SCRA 139, 153; citing McDonald’s Corporation v. Macjoy Fastfood Corporation, G.R. No. 116155, February 2, 2007, 514 SCRA 95, 107.
44 See (visited February 16, 2015).
45 See (visited February 16, 2015).
46Diaz v. People, supra note 43, at 154; citing Emerald Garment Manufacturing Corporation v. Court of Appeals, G.R. No. 100098, December 29, 1995, 251 SCRA 600.
48 No. L-78325, January 25, 1990, 181 SCRA 410, 419.
50 42 Phil. 190 (1921).
51Emerald Garment Manufacturing Corporation v. Court of Appeals, supra note 46, at 617.
52 Supra note 28, at 345; citations omitted.
53Fruit of the Loom, Inc. v. Court of Appeals, No. L-32747, November 29, 1984, 133 SCRA 405, 411.
54Development Bank of the Philippines v. Traders Royal Bank, G.R. No. 171982, August 18, 2010, 628 SCRA 404, 413-414.

References: v. 
 v. 
 Application No. 4
 Application No. 4
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v.