San Miguel Pure Foods Company, Inc. v. Foodsphere, Inc.

San Miguel Pure Foods Company, Inc. v. Foodsphere, Inc.
GR 217781 & 217788
FACTS:
The parties herein are both engaged in the business of the manufacture, sale,
and distribution of food products, with SMPFCI owning the trademark "PUREFOODS
FIESTA HAM" while Foodsphere, Inc. products bear the "CDO" brand.
SMPFCI filed a Complaint for Trademark Infringement and Unfair Competition

pursuant to Sections 155 and 168 of the Intellectual Property Code.
In its complaint, SMPFCI alleged that its "FIESTA" ham, first introduced in 1980,
has been sold in countless supermarkets in the country. Its registered "FIESTA" mark
has acquired goodwill.
However, Foodsphere introduced its "PISTA" ham and aggressively promoted it

in 2007.
In 2009, Foodsphere introduced its paper ham bag which looked signi􏰂cantly
similar to SMPFCI's own paper ham bag and its trade dress and its use of the word
"PISTA" in its packages were confusingly similar to SMPFCI's "FIESTA" mark.
Thus, according to SMPFCI, the striking similarities between the marks and
products of Foodsphere with those of SMPFCI warrant its claim of trademark
infringement on the ground of likelihood of confusion as to origin.
Apart from trademark infringement, SMPFCI further alleged that Foodsphere is

likewise guilty of unfair competition. This is because there is confusing similarity in the
general appearance of the goods of the parties and intent on the part of Foodsphere, to
deceive the public and defraud SMPFCI.
According to SMPFCI, there is confusing similarity because the display panel of

both products have a picture of a partly sliced ham served on a plate of fruits, while the
back panel features other ham varieties offered, both "FIESTA" and "PISTA" are printed
in white bold stylized font, and the product packaging for both "FIESTA" and "PISTA"
consists of box-typed paper bags made of cardboard materials with cut-out holes on
the middle top portion for use as handles and predominantly red in color with a
background design of Christmas balls, stars, snowflakes, and ornate scroll.
In a Resolution21 dated June 13, 2016, the Supreme Court, in G.R. No. 215475,
denied SMPFCI's Petition for Review on Certiorari for failure to sufficiently show that the
CA, in its Decision and Resolution, dated March 6, 2014 and November 13, 2014,
respectively, finding that Foodsphere is not liable for trademark infringement.
ISSUE: Whether or not Foodsphere Inc. is guilty of unfair competition.
RULING: YES
Time and again, the Court has held that unfair competition consists of the
passing off (or palming off) or attempting to pass off upon the public of the goods or
business of one person as the goods or business of another with the end and probable
effect of deceiving the public.
The "true test," therefore, of unfair competition has thus been "whether the acts
of the defendant have the intent of deceiving or are calculated to deceive the ordinary
buyer making his purchases under the ordinary conditions of the particular trade to
which the controversy relates."
Thus, the essential elements of an action for unfair competition are:
(1) confusing similarity in the general appearance of the goods; and
(2) intent to deceive the public and defraud a competitor.
The intent to deceive and defraud may be inferred from the similarity of the
appearance of the goods as offered for sale to the public. Actual fraudulent intent need
not be shown.
In the instant case, the Court finds no error with the findings of the CA and
Director General insofar as the presence of the foregoing elements is concerned.
First of all, there exists a substantial and confusing similarity in the packaging of
Foodsphere's product with that of SMPFCI. Both packages use paper ham bags as the
container for the hams, both paper ham bags use the color as the main colors, and
both have the layout design appearing on the bags. Thus, Foodsphere's packaging in its
entirety, and not merely its "PISTA" mark thereon, renders the general appearance
thereof confusingly similar with the packaging of SMPFCI's ham, that would likely
influence purchasers to believe that these products are similar, if not the same, as
those of SMPFCI.
Second of all, Foodsphere's intent to deceive the public, to defraud its

competitor, and to ride on the goodwill of SMPFCI's products is evidenced by the fact
that not only did Foodsphere switch from its old box packaging to the same paper ham
bag packaging as that used by SMPFCI, it also used the same layout design printed on
the same.
As the Director General observed, why, of the millions of terms and combinations
of letters, designs, and packaging available, Foodsphere had to choose those so closely
similar to SMPFCI's if there was no intent to pass off upon the public the ham of SMPFCI
as its own with the end and probable effect of deceiving the public.

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San Miguel Pure Foods Company, Inc. v. Foodsphere, Inc.

GR 217781 & 217788

SMPFCI filed a Complaint for Trademark Infringement and Unfair Competition

However, Foodsphere introduced its "PISTA" ham and aggressively promoted it

Apart from trademark infringement, SMPFCI further alleged that Foodsphere is

According to SMPFCI, there is confusing similarity because the display panel of

ISSUE: Whether or not Foodsphere Inc. is guilty of unfair competition.

Thus, the essential elements of an action for unfair competition are:

(1) confusing similarity in the general appearance of the goods; and

(2) intent to deceive the public and defraud a competitor.

Second of all, Foodsphere's intent to deceive the public, to defraud its

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