Victorio P. Diaz Vs People of The Philippines and Levi Strauss (Phils.), Inc. G.R. No. 180677 February 18, 2003 Facts

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Victorio P. Diaz vs People of the Philippines and Levi Strauss [Phils.],


Inc.
G.R. No. 180677 February 18, 2003

Facts:
Levi Strauss Philippines, Inc. (Levis Philippines) is a licensee of Levis. After
receiving information that Diaz was selling counterfeit LEVIS 501 jeans in his
tailoring shops in Almanza and Talon, Las Pias City, Levis Philippines hired a
private investigation group to verify the information. Surveillance and the
purchase of jeans from the tailoring shops of Diaz established that the jeans
bought from the tailoring shops of Diaz were counterfeit or imitations of
LEVIS 501. Armed with search warrants, NBI agents searched the tailoring
shops of Diaz and seized several fake LEVIS 501 jeans from them. Levis
Philippines claimed that it did not authorize the making and selling of the
seized jeans; that each of the jeans were mere imitations of genuine LEVIS
501 jeans by each of them bearing the registered trademarks.

On his part, Diaz denied any criminal liability. Diaz stated that he did not
manufacture Levis jeans, and that he used the label LS Jeans Tailoring in
the jeans that he made and sold; that the label LS Jeans Tailoring was
registered with the Intellectual Property Office; that his shops received
clothes for sewing or repair; that his shops offered made-to-order jeans, that
the jeans he produced were easily recognizable because the label LS Jeans
Tailoring, and the names of the customers were placed inside the pockets,
and each of the jeans had an LSJT red tab; that LS stood for Latest
Style; and that the leather patch on his jeans had two buffaloes, not two
horses.

Issue:
Whether there exists a likelihood of confusion between the trademarks of
Levis and Diaz.

Held:
The Court held, through the application of the holistic test, that there was no
likelihood of confusion between the trademarks involved. Accordingly, the
jeans trademarks of Levis Philippines and Diaz must be considered as a
whole in determining the likelihood of confusion between them. The
maongpants or jeans made and sold by Levis Philippines, which included
LEVIS 501, were very popular in the Philippines. The consuming public knew
that the original LEVIS 501 jeans were under a foreign brand and quite
expensive. Such jeans could be purchased only in malls or boutiques as
ready-to-wear items, and were not available in tailoring shops like those of
Diazs as well as not acquired on a made-to-order basis. Under the
circumstances, the consuming public could easily discern if the jeans were
original or fake LEVIS 501, or were manufactured by other brands of jeans.
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Diaz used the trademark LS JEANS TAILORING for the jeans he produced
and sold in his tailoring shops. His trademark was visually and aurally
different from the trademark LEVI STRAUSS & CO appearing on the patch
of original jeans under the trademark LEVIS 501. The word LS could not be
confused as a derivative from LEVI STRAUSS by virtue of the LS being
connected to the word TAILORING, thereby openly suggesting that the
jeans bearing the trademark LS JEANS TAILORINGcame or were bought
from the tailoring shops of Diaz, not from the malls or boutiques selling
original LEVIS 501 jeans to the consuming public.

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