GR 132428; (October, 2000) (Digest)
G.R. No. 132428; October 24, 2000
George Yao, petitioner, vs. Hon. Court of Appeals, and The People of the Philippines, respondents.
FACTS
George Yao, as President and General Manager of Tradeway Commercial Corporation (TCC), was charged with unfair competition under Article 189 of the Revised Penal Code. The prosecution alleged that TCC sold counterfeit fluorescent lamp starters bearing the General Electric (GE) logo and design, thereby deceiving the public. Evidence established that TCC was not an accredited GE distributor and that the seized starters, purchased at a fraction of the genuine product’s cost, lacked authentic design features like a specific capacitor shape and proper silk-screen printing.
Yao admitted overall supervision of TCC’s operations and final authority over product purchases but denied criminal liability. He claimed no knowledge the starters were fake, as suppliers delivered them pre-branded, and he had no role in their manufacture. The Metropolitan Trial Court (MeTC) convicted Yao, finding his position and the commercial improbability of legitimately acquiring such a large quantity of GE starters indicative of guilt. The Court of Appeals dismissed his appeal for failure to file an appellant’s brief.
ISSUE
Whether the Court of Appeals erred in dismissing Yao’s appeal and whether his conviction for unfair competition was proper.
RULING
The Supreme Court denied the petition, affirming the dismissal of the appeal and the conviction. On procedural grounds, the Court upheld the appellate court’s dismissal for failure to file the required brief, which is a mandatory and jurisdictional requirement. Yao’s excuse of awaiting the transcript was unavailing, as he had a duty to monitor the case and request an extension if needed.
On the merits, the Court found the conviction substantiated. Unfair competition under Article 189 occurs when one passes off his goods as those of another, causing confusion. The prosecution proved that TCC sold starters deceptively similar to GE’s, using identical logos and containers, without authorization. As TCC’s President and General Manager with final purchasing authority, Yao’s claim of ignorance was untenable. His position demanded diligence in verifying product authenticity, especially given the glaring price disparity and the fact that no genuine GE starters had been imported since 1983. His failure to exercise this duty supported the finding of intent to deceive the public. The MeTC correctly found all elements of the crime present beyond reasonable doubt.