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Ruling:

To the legal query of whether private respondent may appropriate the trademark "BRUTE" for the
briefs it manufactures and sells to the public albeit petitioner had previously registered the symbol
"BRUT" and "BRUT 33" for its own line of times, it is but apropos to shift Our attention to the
pertinent provisions of the new Civil Code vis-a-vis Republic Act No. 166, as amended, the special
law patterned after the United States Trademark Act of 1946 (Director of Patents, Circular Release
No. 36, 45 O.G. 3704; Martin, Commentaries and Jurisprudence on the Philippine Commercial
Laws, 1986 Revised Edition, Volume 2, page 489), thus:

Art. 520. A trade-mark or trade-name duly registered in the proper government


bureau or office is owned by and pertains to the person, corporation, or firm
registering the same, subject to the provisions of special laws.

Art. 521. The goodwill of a business is property, and may be transferred together with
the right to use the name under which the business is conducted.

Art. 522. Trade-marks and trade-names are governed by special laws.

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Sec. 2. What are registrable. — Trade-marks, trade-names, and service-marks


owned by persons, corporations, partnerships or associations domiciled in the
Philippines and by persons, corporations, partnerships or associations domiciled in
any foreign country may be registered in accordance with the provisions of this Act;
Provided, That said trade-marks, trade-names, or service-marks, are actually in use
in commerce and services not less than two months in the Philippines before the
time the applications for registration are filed: And provided, further, That the country
of which the applicant for registration is a citizen grants by law substantially similar
privileges to citizens of the Philippines, and such fact is officially certified, with a
certified true copy of the foreign law translated into the English language, by the
government of the Republic of the Philippines. (As amended by Rep. Act No. 865).

Sec. 2-A. Ownership of trade-marks, trade-names and service-marks; how acquired.


— Anyone who lawfully produces or deals in merchandise of any kind or who
engages in any lawful business or who renders any lawful service in commerce, by
actual use thereof in manufacture or trade, in business, and in the service rendered,
may appropriate to his exclusive use a trade-mark, a trade-name, or a service-mark
not so appropriated by another, to distinguish his merchandise, business or service
from the merchandise, business or services of others. The ownership or possession
of a trade-mark, trade-name, service-mark, heretofore or hereafter appropriated, as
in this section provided, shall be recognized and protected in the same manner and
to the same extent as are other property rights known to the law. (As inserted by
Sec. 1 of Rep. Act 638).

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Sec. 4. Registration of trade-marks, trade-names and service-marks on the principal


register. —
. . . The owner of trademark, trade-name or service-mark used to distinguish his
goods, business or services from the goods, business or services of others shall
have right to register the same on the principal register, unless it:

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4(d) Consists of or comprises a mark or trade-name which so resembles a mark or


trade-name registered in the Philippines or a mark or trade-name previously used in
the Philippines by another and not abandoned, as to be likely, when applied to or
used in connection with the goods, business or services of the applicant, to cause
confusion or mistake or to deceive purchasers.

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Sec. 11. Issuance and contents of the certificate. — Certificates of registration shall


be issued in the name of the Republic of the Philippines under the seal of the Patent
Office, and shall be signed by the Director, and a record thereof together with a copy
of the specimen or facsimile and the statement of the applicant, shall be kept in
books for that purpose. The certificate shall reproduce the specimen or facsimile of
the mark or trade-name, contain the statement of the applicant and state that the
mark or trade-name is registered under this Act, the date of the first use in commerce
or business, the particular goods or services for which it is registered, the number
and date of the registration, the term thereof, the date on which the application for
registration was received in the Patent Office, a statement of the requirement that in
order to maintain the registration, periodical affidavits of use within the specified
times hereinafter in section twelve provided, shall be filed, and such other data as the
rules and regulations may from time to time prescribe.

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Sec. 20. Certificate of registration prima facie evidence of validity. — A certificate of


registration of a mark or trade-name shall be prima facie evidence of the validity of
the registration, the registrant's ownership of the mark or trade-name, and of the
registrant's exclusive right to use the same in connection with the goods, business or
services specified in the certificate, subject to any conditions and limitations stated
therein.

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