SOMBOONSAKDIKUL v. ORLANE

SERI SOMBOONSAKDIKUL, Petitioner vs. ORLANE S.A., Respondent 

G.R. No. 188996

February 1, 2017

Facts:

On September 23, 2003, petitioner Seri Somboonsakdikul (petitioner) filed an application for registration of the mark LOLANE with the IPO for goods classified under Class 3 (personal care products) of the International Classification of Goods and Services for the Purposes of the Registration of Marks (International Classification of Goods). Orlane S.A. (respondent) filed an opposition to petitioner's application, on the ground that the mark LOLANE was similar to ORLANE in presentation, general appearance and pronunciation, and thus would amount to an infringement of its mark. Respondent alleged that: (1) it was the rightful owner of the ORLANE mark which was first used in 1948; (2) the mark was earlier registered in the Philippines on July 26, 1967 under Registration No. 129961 with the following goods: x x x perfumes, toilet water, face powders, lotions, essential oils, cosmetics, lotions for the hair, dentrifices, eyebrow pencils, make-up creams, cosmetics & toilet preparations under Registration No. 12996 and (3) on September 5, 2003, it filed another application for use of the trademark on its additional products.

Petitioner denied that the LOLANE mark was confusingly similar to the mark ORLANE. He averred that he was the lawful owner of the mark LOLANE which he has used for various personal care products sold worldwide. He alleged that the first worldwide use of the mark was in Vietnam on July 4, 1995. Petitioner also alleged that he had continuously marketed and advertised Class 3 products bearing LOLANE mark in the Philippines and in different parts of the world and that as a result, the public had come to associate the mark with him as provider of quality personal care products.

Petitioner maintained that the marks were distinct and not confusingly similar either under the dominancy test or the holistic test.

The Bureau of Legal Affairs (BLA) rejected petitioner's application in a Decision dated February 27, 2007, finding that respondent's application was filed, and its mark registered, much earlier. The BLA ruled that there was likelihood of confusion based on the following observations: (1) ORLANE and LOLANE both consisted of six letters with the same last four letters - LANE; (2) both were used as label for similar products; (3) both marks were in two syllables and that there was only a slight difference in the first syllable; and (4) both marks had the same last syllable so that if these marks were read aloud, a sound of strong similarity would be produced and such would likely deceive or cause confusion to the public as to the two trademarks.16

Petitioner filed a motion for reconsideration but this was denied by the Director of the BLA on May 7, 2007. On appeal, the Director General of the IPO affirmed the Decision of the BLA Director. Thus, petitioner filed a petition for review before the CA arguing that there is no confusing similarity between the two marks. The Court of Appeals denied the petition and held that there exists colorable imitation of respondent's mark by LOLANE. The CA accorded due respect to the Decision of the Director General and ruled that there was substantial evidence to support the IPO's findings of fact. Applying the dominancy test, the CA ruled that LOLANE' s mark is confusingly or deceptively similar to ORLANE.

Issue:

Wether or not there is confusing similarity between ORLANE and LOLANE which would bar the registration of LOLANE before the IPO.

Ruling:

No, there is no confusing similarity between ORLANE and LOLANE which would bar the registration of LOLANE before the IPO. The Court ruled that the CA erred when it affirmed the Decision of the IPO.

There is no colorable imitation between the marks LOLANE and ORLANE which would lead to any likelihood of confusion to the ordinary purchasers. A trademark is defined under Section 121.1 of RA 8293 as any visible sign capable of distinguishing the goods. It is susceptible to registration if it is crafted fancifully or arbitrarily and is capable of identifying and distinguishing the goods of one manufacturer or seller from those of another. Thus, the mark must be distinctive. The registrability of a trademark is governed by Section 123 of RA 8293. Section 123.1 provides: Section 123. 1. A mark cannot be registered if it: xxx...d. Is identical with a registered mark belonging to a different proprietor or a mark with an earlier filing or priority date, in respect of: i. The same goods or services, or ii. Closely related goods or services, or iii. If it nearly resembles such a mark as to be likely to deceive or cause confusion; e. Is identical with, or confusingly similar to, or constitutes a translation of a mark which is considered by the competent authority of the Philippines to be well-known internationally and in the Philippines, whether or not it is registered here, as being already the mark of a person other than the applicant for registration, and used for identical or similar goods or services: provided, that in determining whether a mark is well-known, account shall be taken of the knowledge of the relevant sector of the public, rather than of the public at large, including knowledge in the Philippines which has been obtained as a result of the promotion of the mark; xxx.

In determining the likelihood of confusion, the Court must consider: [a] the resemblance between the trademarks; [b] the similarity of the goods to which the trademarks are attached; [c] the likely effect on the purchaser and [d] the registrant's express or implied consent and other fair and equitable considerations. Likewise, the Court finding that LOLANE is not a colorable imitation of ORLANE due to distinct visual and aural differences using the dominancy test, it no longer finds necessary to discuss the contentions of the petitioner as to the appearance of the marks together with the packaging, nature of the goods represented by the marks and the price difference, as well as the applicability of foreign judgments. The Court ruled that the mark LOLANE is entitled to registration. Hence, the petition is GRANTED and the Decision of the Court of Appeals dated July 14, 2009 is REVERSED and SET ASIDE.