G.R. No. L-14269; October 16, 1919
FORBES, MUNN & CO. (LTD.), plaintiff-appellant, vs. ANG SAN TO, defendant-appellee.

FACTS:
The plaintiff, Forbes, Munn & Co., a mercantile company, had for years sold cotton khaki drill under the trademark “Three Soldier Khaki” or “Soldier Khaki,” which it registered in 1909. The defendant, Ang San To, a merchant, registered and began using four facsimiles of trademarks for khaki cloth in 1916. The plaintiff filed an action in the Court of First Instance of Manila to perpetually enjoin the defendant from using labels allegedly imitating its trademark and to recover damages for infringement and unfair competition. The trial court dismissed both the complaint and the defendant’s counterclaim, dissolved a preliminary injunction, and taxed costs against the plaintiff. The plaintiff appealed.

ISSUE:
Whether the defendant’s trademark (Exhibit B) constitutes an infringement of the plaintiff’s registered trademark and amounts to unfair competition under the Philippine Trademark Law ( Act No. 666 ).

RULING:
Yes. The Supreme Court reversed the trial court’s decision. Upon comparison, the defendant’s trademark (Exhibit B) was found to be a colorable imitation of the plaintiff’s trademark (Exhibit A). The similarities in general appearance, wording, and even the unusual English spelling “colour” (which the defendant copied from the plaintiff’s mark despite his goods originating from the United States, where “color” is standard) demonstrated an intent to deceive the public. The marks were sufficiently similar to likely mislead ordinary purchasers into believing the defendant’s goods were those of the plaintiff. This constituted both trademark infringement and unfair competition. The Court ordered the issuance of a permanent injunction against the defendant’s use of the infringing mark and remanded the case to the trial court for the determination of damages. Costs were awarded to the plaintiff.