Mighty Corp. vs. E&J Gallo Winery

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Mighty Corporation and La Campana Fabrica De Tabaco, Inc. vs.

E&J
Case Name
Gallo Winery and The Andersons Group, Inc.
Topic Trademark Infringement and Unfair Competition
Case No. |
154342 – July 14, 2004
Date
Ponente J. Corona
Mighty Corporation and La Campana Farbica De Tabaco, Inc.
Petitioner

Respondent E&J Gallo Winery and the Andersons Group, Inc.


Infringement of trademark
- is the unauthorized use of a trademark.
- fraudulent intent is unnecessary.
- prior registration of the trademark is a prerequisite to the action.
Definition
Unfair competition
- is the passing off of one’s goods as those of another.
- fraudulent intent is necessary.
- registration is not necessary.
Doctrine of Incorporation
- the Philippines adopts the generally accepted principles of international law
and international jurisprudence as part of the law of the land. Rules of
international law are given a standing equal, not superior, to national
legislative enactments.
Dominancy Test
Doctrine
- if the competing trademark contains the main, essential or dominant
features of another, and confusion or deception is likely to result, infringement
takes place.
Holistic Test
- requires that the entirety of the marks in question be considered in resolving
confusing similarity.
In determining the likelihood of confusion, courts must consider:
(1) resemblance between the trademarks;
(2) similarity of the goods to which the trademarks are attached;
(3) likely effect on the purchaser; and
(4) registrant’s express or implied consent and other fair and equitable
Enumeratio considerations.
n Set of guidelines in the implementation of the Treaty of Paris:
(1) mark must be internationally known;
(2) subject of the right must be a trademark, not a patent or copyright or
anything else;
(3) mark must be for use in the same or similar kind of goods; and
(4) the person claiming must be the owner of the mark.

RELEVANT FACTS
 Gallo Winery’s GALLO wine trademark was registered on November 16, 1971.
 Mighty and La Campana are engaged in the cultivation, manufacture, distribution and sale of
tobacco products for which they have been using the GALLO cigarette trademark since 1973
 La Campana authorized Mighty to manufacture and sell cigarettes bearing the GALLO
trademark.
ISSUE: W/N infringement of unfair competition was committed.
RULING:
No. Mighty is not liable for infringement because (1) the actual commercial use of the GALLO
wine trademark was subsequent to its registration in 1971 and to Tobacco Industries’
commercia use of the GALLO cigarette trademark in 1973, on this account, respondents
never enjoyed the exclusive right to use the GALLO wine trademark to the prejudice of
Tobacco Industries and its successors-in-interest; (2) there is no likelihood of confusion,
mistake, or deceit as to the identity or source of petitioners and respondents’ goods or
business; and (3) there is no trademark infringement if the public does not expect the plaintiff
to make or sell the same class of goods as those made or sole by the defendant from the
fact that they are not identical, similar, related, or competing goods. Mighty is also not liable
for unfair competition because (1) Mighty never attempted to pass off their cigarettes as
those of respondents; and (2) there is no evidence of bad faith of fraud imputable to Mighty
in using their GALLO cigarette mark.
DISPOSITIVE PORTION

WHEREFORE, finding the petition for review meritorious, the same is hereby GRANTED. The
questioned decision and resolution of the Court of Appeals in CA-G.R. CV No. 65175 and the
November 26, 1998 decision and the June 24, 1999 order of the Regional Trial Court of Makati,
Branch 57 in Civil Case No. 93-850 are hereby REVERSED and SET ASIDE and the complaint
against petitioners DISMISSED. Costs against respondents.
SO ORDERED.

100 words

Mighty vs. E&J Gallo Winery

Facts: Gallo Winery’s GALLO wine trademark was registered in 1971. Mighty is engaged in
the business of manufacturing and selling cigarettes bearing the GALLO cigarette
trademark since 1973.

Issue:
WON Mighty is liable for infringement or unfair competition.

Ruling:
NO. Mighty is not liable for infringement because the different features like color schemes,
art works and other markings of both products drown out the similarity between them,
that is the use of the word “GALLO”. Mighty is not liable for unfair competition because
Mighty never attempted to pass off their cigarettes as those of E&Js

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