29 Asia Brewery, Inc. vs. The Hon. Court of Appeals and San Miguel Corporation

 

 ASIA BREWERY, INC. vs. THE HON. COURT OF APPEALS and SAN MIGUEL CORPORATION Facts: San Miguel Corporation (SMC) filed a complaint against Asia Brewery Inc. (ABI) for infringement of trademark and unfair competition on account of the latter's BEER PALE PILSEN or BEER NA BEER product which has been competing com peting with SMC's SAN MIGUEL PALE PILSEN for a share of the local beer market. The trial court dismissed SMC's complaint because ABI "has not committed trademark infringement or unfair competition against" SMC On appeal by SMC, the Court of Appeals reversed reverse d the decision rendered by the tri trial al court, finding the defendant Asia Brewery Incorporated GUILTY of infringement of trademark and unfair competition. ABI then filed a petition for certiorari. Issue: Whether the words PALE PILSEN as part of ABI’s trademark constitute infringement of SMC’s trademark? Whether or not there is confusing similarity between the two trademarks. Ruling: No. The Supreme Court said it does not constitute an infringement as the words PALE PILSEN, which are part of ABI’s trademark, are generic words descripti ve of the color (“pale“), of a type of beer (“pilsen”), which is a light bohemian beer with a strong hops flavor that originated in the City of Pilsen, Czechislovakia and became famous in the Middle Ages. The Court further said ifthat theare words maytrademark. not be appropriated by SMCSupreme for its exclusive use even they part "pale of its pilsen" registered No one may appropriate generic or descriptive words. They belong to the public domain. Petitioner ABI has neither infringed SMC's trademark nor committed unfair competition with the latter's SAN MIGUEL PALE PILSEN product.

a ny dispute that the dominant feature of S SMC’s MC’s trademark is the name No. There is hardly any of the product: SAN MIGUEL PALE PILSEN, written in white Gothic letters with elaborate serifs at the beginning and end of the letters “S” and “M” “ M” on an amber background across acro ss the upper portion of the rectangular design. On the other hand, the dominant feature of  ABI’s trademark is the name: BEER PALE PILSEN, with the word “Beer” writt en in large

amber letters, larger than any of the letters found in the SMC label.