Professional Documents
Culture Documents
Kensonic vs. Uniline
Kensonic vs. Uniline
DECISION
BERSAMIN, J.:
The case concerns the cancellation of the registration of the trademark SAKURA for the goods
of Uni-Line Multi Resources, Inc. (Phils.) (Uni-Line) being sought by Kensonic, Inc. (Kensonic) on the
ground that the latter had prior use and registration of the SAKURA mark.
The Case
Under consideration are the consolidated appeals urging the review and reversal of the decision
promulgated on July 30, 20131 and the amended decision promulgated on March 19,
2014,2 whereby the Court of Appeals (CA) affirmed the decision rendered on June 11, 2012 by the
Director General of the Intellectual Property Office (IPO) upholding the cancellation of the application
of Uni-Line for the registration of the SAKURA mark for goods falling under Class 09 of the Nice
International Classification of Goods (Nice Classification), and allowing the registration of Uni-Line's
SAKURA mark registration for goods falling under Class 07 and Class 11 of the Nice Classification.3
Antecedents
On June 15, 1999, Uni-Line filed an application for the registration of the mark
"SAKURA" for amplifier, speaker, cassette, cassette disk, video cassette disk, car
stereo, television, digital video disk, mini component, tape deck, compact disk
charger, VHS, and tape rewinder falling under Class 9 of the Nice International
Classification of Goods. Kensonic opposed Uni-Line's application which was
docketed as IPC No. 14-2004-00160 (IPC 1). The Director of the Bureau of Legal
Affairs (BLA) rendered Decision No. 2005-01 dated November 29, 2005 finding that
Kensonic was the first to adopt and use the mark SAKURA since 1994 and thus
rejecting Uni-Line's application. On January 19, 2006, said Decision became final
and executory.
While IPC Case 1 was pending, Uni-Line filed an application and was issued a
certificate of registration for the mark "SAKURA & FLOWER DESIGN" for use on
recordable compact disk (CD-R) computer, computer parts and accessories falling
under Class 9. On September 7, 2006, Kensonic filed a petition for cancellation
docketed as IPC No. 14-2006-00183 (IPC 2) of Uni-Line's registration. In Decision
No. 08-113 dated August 7, 2008, the BLA Director held that Uni-Line's goods are
related to Kensonic's goods and that the latter was the first user of the mark
SAKURA used on products under Class 9. The BLA Director thus cancelled Uni-
Line's certificate of registration. Uni-Line moved for reconsideration of the BLA
Director's Decision which is pending resolution to date.
Goods Nice
Classification
On September 7, 2006, Kensonic filed with the BLA a Petition for Cancellation of
Uni-Line's Certificate of Registration alleging that in October 1994, it introduced the
marketing of SAKURA products in the Philippines and that it owned said SAKURA
products and was the first to use, introduce and distribute said products. Kensonic
also alleged that in IPC 1, it opposed Uni-Line's application to register SAKURA and
was already sustained by the Director General, which Decision is now final and
executory. Kensonic further alleged that it is the owner of a copyright for SAKURA
and that since 1994, has maintained and established a good name and goodwill
over the SAKURA products.
Kensonic filed its Supplemental Petition for Cancellation and its Reply to Uni-
Line's Answer. Uni-Line filed its Rejoinder thereto.4
After due proceedings, the BLA issued Decision No. 2008-149 dated August 11, 2008,5 whereby
it ruled in favor of Kensonic and against Uni-Line, and directed the cancellation of Registration No. 4-
2002-004572 of the latter's SAKURA mark. It observed that an examination of the SAKURA mark of
Kensonic and that of Uni-Line revealed that the marks were confusingly similar with each other; that
the goods sought to be covered by the SAKURA registration of Uni-Line were related to the goods of
Kensonic, thereby necessitating the cancellation of the registration of Uni-Line's mark; and that
considering that Kensonic had used the SAKURA mark as early as 1994 in Class 09 goods (namely:
amplifiers, speakers, cassette disks, video cassette disks, car stereos, televisions, digital video
disks, mini components, tape decks, compact disk chargers, VHS and tape rewinders), Kensonic
had acquired ownership of the SAKURA mark, and should be legally protected thereon. The
dispositive portion reads:
Let the file wrapper of this case be forwarded to the Bureau of Trademark (BOT)
for appropriate action in accordance with this Decision.
SO ORDERED.6
On appeal,7 the Director General of the IPO modified the decision of the BLR by upholding Uni-
Line's registration of the SAKURA mark as to goods classified as Class 07 and Class 11, thereby
effectively reversing the BLR, but affirmed the BLR as regards the treatment of the SAKURA mark
that covered the goods falling under Class 09. The Director General clarified that the marks of Uni-
Line and Kensonic were similar if not identical; that considering that Inter Partes Case No. 14-2004-
00160 (IPC 1) already effectively ruled that the products registered by Uni-Line were goods related
to those covered by the registration of Kensonic, the registration of Uni-Line insofar as those
products sought to be registered under Class 09 were concerned (i.e., television sets, stereo
components, DVD/VCD players, voltage regulators, portable generators, switch breakers, fuse) was
correctly cancelled; that the registration of products of Uni-Line falling under Class 07 and Class 11
should not be cancelled because the products were different from the goods registered under Class
09 in the name of Kensonic; that there should be evidence showing how the continued registration of
the SAKURA mark of Uni-Line would cause damage to Kensonic; and that the goods covered by the
SAKURA registration of Uni-Line and the SAKURA registration of Kensonic should be distinguished
because:
In addition, the ordinary purchaser must be thought of, as having, and credited
with, at least a modicum of intelligence. It does not defy common sense to assert
that a purchaser would be cognizant of the product he is buying. As a general rule,
an ordinary buyer does not exercise as much pendence in buying an article for
which he pays a few centavos as he does in purchasing a more valuable thing.
Expensive and valuable items are normally bought only after deliberate, comparative
and analytical investigation.
In this instance, the products of the Appellants under Classes 7 and 11 are
home appliances which are not the ordinary everyday goods the public buys and
consumes. These products are not inexpensive items and a purchaser would
ordinarily examine carefully the features and characteristics of the same. It is,
therefore, farfetched that the purchasing public would be misled or be deceived as to
the source or origin of the products. Furthermore, there is nothing in the records that
indicate any plans by the Appellee to enter into business transactions or to the
manufacture and distribution of goods similar to the products of the Appellants under
Classes 7 and 11.8
Let a copy of this Decision as well as the records of this case be furnished and
returned to the Director of the Bureau of Legal Affairs for appropriate action. Further,
let also the Director of the Bureau of Trademarks and the library of Documentation,
Information and Technology Transfer Bureau be furnished a copy of this Decision for
information, guidance, and records purposes.
SO ORDERED.9
Judgment of the CA
Both parties appealed to the CA, which promulgated its decision on July 30, 2013 dismissing the
appeal of Kensonic (C.A.-G.R. SP No. 125420) and granting Uni-Line's appeals (C.A.-G.R. SP No.
125424). The CA upheld Kensonic's ownership of the SAKURA mark based on its showing of its use
of the mark since 1994, but ruled that despite the identical marks of Kensonic and Uni-Line,
Kensonic's goods under Class 09 were different from or unrelated to Uni-Line's goods under Class
07 and Class 11. It observed that the protection of the law regarding the SAKURA mark could only
extend to television sets, stereo components, DVD and VCD players but not to Uni-Line's voltage
regulators, portable generators, switch breakers and fuses due to such goods being unrelated to
Kensonic's goods; that Kensonic's registration only covered electronic audio-video products, not
electrical home appliances; and that the similarity of the marks would not confuse the public because
the products were different and unrelated. It ruled:
WHEREFORE, the Petition filed by Kensonic, Inc., in C.A.G.R. SP No. 125420
is DENIED and the Petition filed by Uni-Line Multi Resources, Inc. (Phils.)
is GRANTED.
Accordingly, the Decision dated June 11, 2012 of Director General Ricardo R.
Blancaflor of the Intellectual Property Office is MODIFIED such that Uni-Line's
Appeal insofar as the cancellation of its Certificate of Registration No. 4-2002-
004572 for goods enumerated and falling under Class 9
is GRANTED but DELETING therefrom the goods television sets, stereo
components, DVD players and VCD players. The Decision dated June 11, 2012 of
the Director General is hereby UPHELD insofar as it granted Uni-Line's Appeal on
the cancellation of its Certificate of Registration No. 4-2002-004572 for goods
enumerated and falling under Class 7 and Class 11.
SO ORDERED.10
Kensonic sought partial reconsideration, submitting that voltage regulators, portable generators,
switch breakers and fuse were closely related to its products; that maintaining the two SAKURA
marks would cause confusion as to the source of the goods; and that Uni-Line's goods falling under
Class 07 and Class 11 were closely related to its goods falling under Class 09.
In the assailed amended decision promulgated on March 19, 2014,11 the CA sided with
Kensonic, and reverted to the ruling by the Director General of IPO cancelling the registration of the
SAKURA mark covering all the goods of Uni-Line falling under Class 09 on the basis that all the
goods belonged to the general class of goods. The CA decreed:
SO ORDERED.12
Issues
Kensonic (G.R. Nos. 211820-21) insists that the CA erred in not considering that Uni-Line's
goods under Class 07 and Class 11 were related to its goods falling under Class 09; and that all the
agencies below were unanimous in declaring that the marks were identical, and, as such, the use of
the SAKURA marks would lead to confusion about the source of the goods.
Uni-Line (G.R. Nos. 211834-35) contends that the SAKURA mark could not be appropriated
because it simply referred to cherry blossom in Japanese and was thus a generic name that was not
copyrightable; that it was grave error for the IPO and the CA to rule that Kensonic owned the mark;
and that voltage regulators, portable generators, switch breakers and fuse were unrelated to
Kensonic's products because Uni-Line's products were not electronic.
(2) Are Kensonic's goods falling under Class 09 related to UniLine's goods falling under
Class 07 and Class 11?; and
(3) Are Uni-Line's goods falling under Class 9, namely: voltage regulators, portable
generators, switch breakers and fuses, related to Kensonic's goods falling under
Class 9?
I.
The SAKURA mark can be appropriated
Uni-Line's opposition to Kensonic's ownership of the SAKURA mark insists that the: SAKURA
mark is not copyrightable for being generic. Such insistence is unacceptable.
To be noted is that the controversy revolves around the SAKURA mark which is not a copyright.
The distinction is significant. A mark is any visible sign capable of distinguishing the goods
(trademark) or services (service mark) of an enterprise, and includes a stamped or marked container
of goods.13 In contrast, a copyright is the right to literary property as recognized and sanctioned by
positive law; it is an intangible, incorporeal right granted by statute to the author or originator of
certain literary or artistic productions, whereby he or she is invested, for a specific period, with the
sole and exclusive privilege of multiplying copies of the same and publishing and selling
them.14 Obviously, the SAKURA mark is not an artistic or literary work but a sign used to distinguish
the goods or services of one enterprise from those of another.
An examination of the pertinent laws also reveals that Uni-Line mistakenly argues that the
SAKURA mark was not capable of registration for being generic.
Section 123(h) of the Intellectual Property Code prohibits the registration of a trademark that
consists exclusively of signs that are generic for the goods or services that they seek to identify. It is
clear from the law itself, therefore, that what is prohibited is not having a generic mark but having
such generic mark being identifiable to the good or service. In Asia Brewery, Inc., v. Court of
Appeals,15 the Court ruled that there was no infringement of San Miguel Brewery's Pale Pilsen
trademark because Pale Pilsen could not be appropriated. The Court explained:
The fact that the words pale pilsen are part of ABI's trademark does not constitute an
infringement of SMC's trademark: SAN MIGUEL PALE PILSEN, for "pale pilsen" are generic words
descriptive of the color ("pale"), of a type of beer ("pilsen"), which is a light bohemian beer with a
strong hops flavor that originated in the City of Pilsen in Czechoslovakia and became famous in the
Middle Ages. (Webster's Third New International Dictionary of the English Language, Unabridged
Edited by Philip Babcock Gove. Springfield, Mass.: G & C Merriam Co., c) 1976, page 1716.)
"Pilsen" is a "primarily geographically descriptive word," (Sec. 4, subpar. [e] Republic Act No. 166, as
inserted by Sec. 2 of R.A. No. 638) hence, non-registerable and not appropriable by any beer
manufacturer. The Trademark Law provides:
The words "pale pilsen" may not be appropriated by SMC for its exclusive use even if they are
part of its registered trademark: SAN MIGUEL PALE PILSEN, any more than such descriptive words
as "evaporated milk," "tomato ketchup," "cheddar cheese," "com flakes" and "cooking oil" may be
appropriated by any single manufacturer of these food products, for no other reason than that he
was the first to use them in his registered trademark. In Masso Hermanos, S.A. vs. Director of
Patents, 94 Phil. 136, 139 (1953), it was held that a dealer in shoes cannot register "Leather Shoes"
as his trademark because that would be merely descriptive and it would be unjust to deprive other
dealers in leather shoes of the right to use the same words with reference to their merchandise. No
one may appropriate generic or descriptive words. They belong to the public domain (Ong Ai Gui vs.
Director of Patents, 96 Phil. 673, 676 [1955]).
This, however, is not the situation herein. Although SAKURA refers to the Japanese flowering
cherry16 and is, therefore, of a generic nature, such mark did not identify Kensonic's goods unlike
the mark in Asia Brewery, Inc., v. Court of Appeals. Kensonic's DVD or VCD players and other
products could not be identified with cherry blossoms. Hence, the mark can be appropriated.
Kensonic's prior use of the mark since 1994 made it the owner of the mark, and its ownership
cannot anymore be challenged at this stage of the proceedings. Seeking the review of Kensonic's
ownership would entail the examination of facts already settled by the lower tribunals. Uni-Line's
challenge to the ownership of the SAKURA mark should stop here because the Court cannot act on
a factual matter in this appeal by petition for review on certiorari, which is limited to the consideration
of questions of law. Section 1, Rule 45 of the Rules of Court specifically so provides:
The distinction between a question of law and a question of fact is well defined. According
to Tongonan Holdings and Development Corporation v. Escaño, Jr.:17
A question of law arises when there is doubt as to what the law is on a certain
state of facts, while there is a question of fact when the doubt arises as to the truth
or falsity of the alleged facts. For a question to be one of law, the same must not
involve an examination of the probative value of the evidence presented by the
litigants or any of them. The resolution of the issue must rest solely on what the law
provides on the given set of circumstances. Once it is clear that the issue invites a
review of the evidence presented, the question posed is one of fact. Thus, the test of
whether a question is one of law or of fact is not the appellation given to such
question by the party raising the same; rather, it is whether the appellate court can
determine the issue raised without reviewing or evaluating the evidence, in which
case, it is a question of law; otherwise it is a question of fact.
It is timely to remind, too, that the Court is not a trier of facts. Hence, the factual findings of the
quasi-judicial body like the IPO, especially when affirmed by the CA, are binding on the
Court.18 Jurisprudence has laid down certain exceptions to the rule of bindingness,19 but, alas, Uni-
Line did not discharge its burden to show how its urging for a review of the factual findings came
within any of the exceptions.
II.
Uni-Line's goods classified under Class 07 and Class 11 were not related to Kensonic's
goods registered under Class 09
The CA did not err in allowing the registration of Uni-Line's products falling under Class 07 and
Class 11, for, indeed, those products - as found by the lower tribunals were unrelated to the goods of
Kensonic registered under Class 09.
Still, Kensonic contends that the goods of Uni-Line classified under Class 07 and Class 11 were
covered by the prohibition from registration for being within the normal potential expansion of
Kensonic. 1âшphi1
The prohibition under Section 123 of the Intellectual Property Code extends to goods that are
related to the registered goods, not to goods that the registrant may produce in the future. To allow
the expansion of coverage is to prevent future registrants of goods from securing a trademark on the
basis of mere possibilities and conjectures that may or may not occur at all. Surely, the right to a
trademark should not be made to depend on mere possibilities and conjectures.
In Mighty Corporation v. E. & J. Gallo Winery,20 the Court has identified the different factors by
which to determine whether or not goods are related to each other for purposes of registration:
Non-competing goods may be those which, though they are not in actual competition, are so
related to each other that it can reasonably be assumed that they originate from one manufacturer,
in which case, confusion of business can arise out of the use of similar marks. They may also be
those which, being entirely unrelated, cannot be assumed to have a common source; hence, there is
no confusion of business, even though similar marks are used. Thus, there is no trademark
infringement if the public does not expect the plaintiff to make or sell the same class of goods as
those made or sold by the defendant.
In resolving whether goods are related, several factors come into play:
(a) the business (and its location) to which the goods belong
(c) the product's quality, quantity, or size, including the nature of the
package, wrapper or container
(i) the conditions under which the article is usually purchased and
(j) the channels of trade through which the goods flow, how they are
distributed, marketed, displayed and sold. (Citations omitted)
An examination of the foregoing factors reveals that the goods of Uni-Line were not related to
the goods of Kensonic by virtue of their differences in class, the descriptive attributes, the purposes
and the conditions of the goods.
III.
The goods of Kensonic were also unrelated to the goods of Uni-Line although both belonged
to Class 9
Uni-Line posits that its goods under Class 09 were unrelated to the goods of Kensonic; and that
the CA’s holding of the goods being related by virtue of their belonging to the same class was
unacceptable
In Taiwan Kolin Corporation, Ltd. v. Kolin Electronics, Co., Inc.,21 the Court has opined that the
mere fact that goods belonged to the same class does not necessarily mean that they are related;
and that the factors listed in Mighty Corporation v. E. & J. Gallo Winery should be taken into
consideration, to wit:
As mentioned, the classification of the products under the NCL is merely part and parcel of the
factors to be considered in ascertaining whether the goods are related. It is not sufficient to state that
the goods involved herein are electronic products under Class 9 in order to establish relatedness
between the goods, for this only accounts for one of many considerations enumerated in Mighty
Corporation. xxx
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 9 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. From this subclassification, it becomes apparent that petitioner's products, i.e.,
televisions and DVD players, belong to audiovisual 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.
Based on the foregoing pronouncement in Taiwan Kolin Corporation, Ltd. v. Kolin Electronics,
Co., Inc., there are other sub-classifications present even if the goods are classified under Class 09.
For one, Kensonic's goods belonged to the information technology and audiovisual equipment sub-
class, but Uni-Line's goods pertained to the apparatus and devices for controlling the distribution of
electricity sub-class. Also, the Class 09 goods of Kensonic were final products but Uni-Line's Class
09 products were spare parts. In view of these distinctions, the Court agrees with Uni-Line that its
Class 09 goods were unrelated to the Class 09 goods of Kensonic.
WHEREFORE, the Court DENIES the petition for review on certiorari in G.R.
No. 211820-21; PARTIALLY GRANTS the petition for review on certiorari in G.R.
No. 211834-35; REVERSES and SETS ASIDE the amended decision promulgated
on March 19, 2014; PARTIALLY REINSTATES the decision promulgated on July
30, 2013 insofar as it allowed the registration by Uni-Line Multi-Resources, Inc.
under the SAKURA mark of its voltage regulators, portable generators, switch
breakers and fuses; and ORDERS Kensonic, Inc. to pay the costs of suit. SO
ORDERED.