G.R. No. 36765; October 1, 1932
ED. A. KELLER & CO., LTD., plaintiff-appellee, vs. KINKWA MERIYASU CO. (P. I.), INC., defendant-appellant.

FACTS

Plaintiff-appellee Ed. A. Keller & Co., Ltd. had been selling high-grade men’s undershirts in the Philippines for decades under the trade name “MARCA PAVO” (or “PAVO”) and a registered trademark featuring a peacock. It established a valuable reputation and business under this name. Defendant-appellant Kinkwa Meriyasu Co. began selling similar undershirts in 1928 under the name “MARCA PAVO” with a picture of a turkey, after having previously purchased goods from the plaintiff. The plaintiff sued for trademark infringement and unfair competition, seeking damages and an injunction. The trial court ruled in favor of the plaintiff, granting a permanent injunction and awarding damages of P10,000. The defendant appealed.

ISSUE

Whether the defendant is liable for unfair competition and whether the awarded damages are excessive.

RULING

Yes, the defendant is liable for unfair competition. The Supreme Court held that the action was essentially one for unfair competition under Act No. 666, as amended, rather than for trademark infringement, as neither party was using the exact trademark from their original certificates. The evidence established that the defendant, with knowledge of the plaintiff’s established trade name, sold imitation goods under the confusingly similar name “MARCA PAVO” with a turkey picture, deceiving the public and damaging the plaintiff’s business. The Court affirmed the injunction. Regarding damages, the Court found the award of P10,000 not excessive. The defendant failed to present conclusive evidence (like books and receipts) to substantiate its claimed deductions from gross profits for expenses, offering only general estimates. The judgment of the trial court was affirmed.

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