ChanRobles Virtual law Library
[ G.R. No. 144100. August 28, 2000]
ELIDAD KHO vs. SUMMERVILLE GEN'L. MERCHANDISING & CO., et al.
THIRD DIVISION
Gentlemen:
Quoted hereunder, for your information, is a resolution of this Court dated AUG 28 2000.
G.R. No. 144100 (Elidad Kho, doing business under the name and style KEC Cosmetics Laboratory vs. Summerville General Merchandising and Co. and Ang Tiam Chay.)
This is a petition for review under Rule 45 seeking the partial reversal of the decision dated November 22, 1999 which affirmed that of the lower court declaring that petitioner Elidad C. Kho is not legally authorized to use the trademark "Chin Chun Su" and upheld the right of respondent Summerville General Merchandising & Co. to use said Trademark as authorized by Shun Yih Chemistry Factory of Taiwan.
The pertinent facts show that Shun Yih Chemistry Factory of Taiwan (or Shun Yih, for brevity) is the owner and manufacturer of "Chin Chun Su" facial cream.
On June 8, 1978, Shun Yih appointed Kho Seng Hiok (a.k.a Quintin Cheng) as sole agent and importer in the Philippines of its product "Chin Chun Su" facial cream for two years, or until June 8, 2000.
On January 30, 1990, Quintin Cheng sold, assigned and transferred to Elidad C. Kho his right, title, and interest on the trademark Chin Chun Su and registered the same with the Bureau of Patent & Technology on February 7, 1990.
On October 30, 1990, Shun Yih of Taiwan terminated the sole distributorship agreement executed in favor of Quintin Cheng to distribute Chin Chun Sun facial cream.
On November 20, 1990, Shun Yih gave exclusive importation and distribution rights to petitioner Summerville General Merchandising Co. and authorized it to register the trademark "Chin Chun Su."
On May 17, 1991, the National Library issued Certificate of copyright Registration No. 010358 to petitioner Elidad C. Kho as author of "Chin Chun Su" facial cream.
On May 23, 1991, the National Library again issued Certificate of Copyright Registration No. 3687 to Elidad C. Kho as author of "Nal Facial Cream Container Case."
In November-December 1991, the trademark registration "Chin Chun Su and Desire" was cancelled by the Bureau of Patents, Trademarks and Technology Transfer for failure of the registrant to file the required affidavit for non-use.
On February 4, 1992, the Bureau of Food and Drugs (BFAD) cancelled the brand name clearance of "Chin Chun Su" and temporarily cancelled cosmetic registration No. DR-X6113-78 pending petitioner's application to change or amend the brand name.
On April 13, 1992, the BFAD issued a writ of preliminary injunction against the registration of "Chin Chun Su" facial cream and temporarily suspended the registration of "Chin Chun Su" facial cream as a cosmetic product pending the decision in Civil Case No. Q-91-10926.
The issue is who, between petitioner Elidad C. Kho and respondent Summerville General Merchandising and Company has the better right to use the trademark "Chin Chun Su" on their facial cream product?
We agree with the Court of Appeals and the trial court that Summerville General Merchandising and Company has the better right to use the trademark "Chin Chun Su" on its facial cream product by virtue of the exclusive importation and distribution rights given to it by Shun Yih Chemistry Factory of Taiwan on November 20, 1990 after the latter cancelled and terminated on October 30, 1990 its Sole Distributorship Agreement with one Quintin Cheng, who assigned and transferred his rights under said agreement to petitioner Elidad C. Kho on January 31, 1990.
As correctly held by the Court of Appeals, petitioner Kho is not the author of the trademark "Chin Chun Su" and his only claim to the use of the trademark is based on the Deed of Agreement executed in his favor by Quintin Cheng. By virtue thereof, he registered the trademark in his name. The registration was a patent nullity because petitioner is not the creator of the trademark "Chin Chun Su" and, therefore, has no right to register the same in his name. Furthermore, the authority of Quintin Cheng to be the sole distributor of Chin Chun Su in the Philippines had already been terminated by Shun Yih Chemistry of Taiwan. Withal, he had no right to assign or to transfer the same to petitioner Kho.
WHEREFORE, the instant petition is hereby denied due course.
SO ORDERED.
Very truly yours,
(Sgd.) JULIETA Y. CARREON
Clerk of Court
HERE FOR THE LATEST SUPREME COURT JURISPRUDENCE
PHILIPPINE SUPREME COURT DECISIONS
QUICK SEARCH
