G.R. No. L-8032; January 22, 1914
FINLAY, FLEMING & CO., plaintiff-appellee, vs. ONG TAN CHUAN, defendant-appellant.

FACTS:
The plaintiff, Finlay, Fleming & Co., through its agent, was the sole vendor of a specific brand of wax candles. These candles were packaged in distinctive blue paper wrappers bearing a unique label comprising special pictures, signs, designs, and colors, which together identified the product in the market. The defendant, Ong Tan Chuan, knowing of the plaintiff’s established trade, procured from Japan the manufacture of a similar trade label and packaging. The defendant’s label, while differing in minor details, was strikingly similar in general scheme, form, color, and style to the plaintiff’s. The packages were also of substantially the same size and wrapped in identical blue paper. This created a situation where an ordinary purchaser would likely be deceived into buying the defendant’s candles, mistaking them for the plaintiff’s.

ISSUE:
Whether the defendant’s actions constitute unfair competition under Section 7 of Act No. 666 .

RULING:
Yes. The Supreme Court affirmed the trial court’s judgment. The evidence fully established a violation of Section 7 of Act No. 666 , which defines unfair competition. The Court found a striking similarity between the trade labels and the overall appearance of the parties’ packagingincluding the form, color, boxes, and printed words. This close imitation was clearly intended to, and would likely, deceive the public into believing the defendant’s goods were those of the plaintiff, thereby defrauding the plaintiff of its legitimate trade. The trial court’s award of damages was therefore upheld.