Coffee Partners Vs San Francisco Coffee

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Coffee Partners v.

San Francisco Coffee &


Roastery (G.R. No. 169504)
Facts:

Petitioner Coffee Partners entered into a franchise agreement with Coffee Partners Ltd.
to operate coffee shops in the country using the trademark ‘San Francisco Coffee.’
Respondent on the other hand, is a local corporation engaged in the wholesale and
retail sale of coffee and uses the business name ‘San Francisco Coffee & Roastery’
registered with the DTI. Later, respondent filed an infringement and/or unfair
competition complaint against petitioner alleging that the latter was about to open a
coffee shop under the name ‘San Francisco Coffee’ causing confusion in the minds of
the public as it bore a similar name and is engaged also in selling of coffee. Petitioner
contended no infringement would arise because respondent’s tradename was not
registered.

Issue:

Whether or not petitioner’s trademark would infringe respondent’s tradename.

Ruling: YES.

In Prosource International, Inc. v. Horphag Research Management SA, this Court laid
down what constitutes infringement of an unregistered trade name, thus:

(1) The trademark being infringed is registered in the Intellectual Property Office;
however, in infringement of trade name, the same need not be registered;

(2) The trademark or trade name is reproduced, counterfeited, copied, or colorably


imitated by the infringer;

(3) The infringing mark or trade name is used in connection with the sale, offering for
sale, or advertising of any goods, business or services; or the infringing mark or trade
name is applied to labels, signs, prints, packages, wrappers, receptacles, or
advertisements intended to be used upon or in connection with such goods, business,
or services;

(4) The use or application of the infringing mark or trade name is likely to cause
confusion or mistake or to deceive purchasers or others as to the goods or services
themselves or as to the source or origin of such goods or services or the identity of such
business; and
(5) It is without the consent of the trademark or trade name owner or the assignee
thereof.

RA 8293, which took effect on 1 January 1998, has dispensed with the registration
requirement. Section 165.2 of RA 8293 categorically states that trade names shall be
protected, even prior to or without registration with the IPO, against any unlawful act
including any subsequent use of the trade name by a third party, whether as a trade
name or a trademark likely to mislead the public.

It is the likelihood of confusion that is the gravamen of infringement. Applying the


dominancy test or the holistic test, petitioner’s “SAN FRANCISCO COFFEE” trademark
is a clear infringement of respondent’s “SAN FRANCISCO COFFEE & ROASTERY,
INC.” trade name. The descriptive words “SAN FRANCISCO COFFEE” are precisely
the dominant features of respondent’s trade name. Petitioner and respondent are
engaged in the same business of selling coffee, whether wholesale or retail. The
likelihood of confusion is higher in cases where the business of one corporation is the
same or substantially the same as that of another corporation. In this case, the
consuming public will likely be confused as to the source of the coffee being sold at
petitioner’s coffee shops.

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