The Supreme Court ruled in favor of Taiwan Kolin, finding that their trademark registration for "KOLIN" for televisions and DVD players was entitled and did not infringe on Kolin Electronics' prior registration. While both marks used the word "KOLIN", the Court found the products were unrelated based on multiple factors beyond just product classification. Additionally, the marks had distinct visual differences that would not confuse an ordinary intelligent purchaser. The registration was granted as the marks were not identical, the goods were unrelated, and there was no likelihood of consumer confusion.
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Taiwan Kolin Corporation, LTD Powerpoint
The Supreme Court ruled in favor of Taiwan Kolin, finding that their trademark registration for "KOLIN" for televisions and DVD players was entitled and did not infringe on Kolin Electronics' prior registration. While both marks used the word "KOLIN", the Court found the products were unrelated based on multiple factors beyond just product classification. Additionally, the marks had distinct visual differences that would not confuse an ordinary intelligent purchaser. The registration was granted as the marks were not identical, the goods were unrelated, and there was no likelihood of consumer confusion.
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TAIWAN KOLIN
CORPORATION, LTD. vs. KOLIN
ELECTRONICS CO., INC. G.R. No. 209843, March 25, 2015 J. Velasco, Jr. FACTS Taiwan Kolin filed with the IPO, then BPTTT, a trademark application, for the use of “KOLIN” on a combination of goods, including colored televisions, refrigerators, window-type and split- type air conditioners, electric fans and water dispensers with Taiwan Kolin electing Class 9 as the subject of its application. Kolin Electronics opposed Taiwan Kolin’s application arguing that the mark Taiwan Kolin seeks to register is identical, if not confusingly similar, with its registered “KOLIN” mark covering products under Class 9 of the NCL. BLA-IPO denied Taiwan Kolin’s application, citing Sec. 123(d) of the IP Code that a mark cannot be registered if it is identical with a registered mark belonging to a different proprietor in respect of the same or closely-related goods. Accordingly, Kolin Electronics, as the registered owner of the mark “KOLIN” for goods falling under Class 9 of the NCL, should then be protected against anyone who impinges on its right, including Taiwan Kolin who seeks to register an identical mark to be used on goods also belonging to Class 9 of the NCL. Taiwan Kolin appealed the above Decision to the Office of the Director General of the IPO which gave due course to the appeal ratiocinating that product classification alone cannot serve as the decisive factor in the resolution of whether or not the goods are related and that emphasis should be on the similarity of the products involved and not on the arbitrary classification or general description of their properties or characteristics. Kolin Electronics elevated the case to the CA which found for Kolin Electronics on the strength of the following premises:
(a) the mark sought to be registered by Taiwan Kolin is
confusingly similar to the one already registered in favor of Kolin Electronics (b) there are no other designs, special shape or easily identifiable earmarks that would differentiate the products of both competing companies (c) the intertwined use of television sets with amplifier, booster and voltage regulator bolstered the fact that televisions can be considered as within the normal expansion of Kolin Electronics, and is thereby deemed covered by its trademark as explicitly protected under Sec. 138 of the IP Code. ISSUE Whether or not Taiwan Kolin is entitled to its trademark registration of “KOLIN” over its specific goods of television sets and DVD players. RULING Yes, Taiwan Kolin is entitled. Whether or not the products covered by the trademark sought to be registered by Taiwan Kolin, on the one hand, and those covered by the prior issued certificate of registration in favor of Kolin Electronics, on the other, fall under the same categories in the NCL is not the sole and decisive factor in determining a possible violation of Kolin Electronics’ intellectual property right should Taiwan Kolin’s application be granted. It is hornbook doctrine that emphasis should be on the similarity of the products involved and not on the arbitrary classification or general description of their properties or characteristics. The mere fact that one person has adopted and used a trademark on his goods would not, without more, prevent the adoption and use of the same trademark by others on unrelated articles of a different kind. It must be noted that the products covered by Taiwan Kolin’s application and Kolin Electronics’ registration are unrelated. A certificate of trademark registration confers upon the trademark owner the exclusive right to sue those who have adopted a similar mark not only in connection with the goods or services specified in the certificate, but also with those that are related thereto. In resolving one of the pivotal issues in this case–– whether or not the products of the parties involved are related––the doctrine in Mighty Corporation is authoritative. There, the Court held that the goods should be tested against several factors before arriving at a sound conclusion on the question of relatedness. Among these are: (a) the business (and its location) to which the goods belong (b) the class of product to which the goods belong; (c) the product’s quality, quantity, or size, including the nature of the package, wrapper or container; (d) the nature and cost of the articles; (e) the descriptive properties, physical attributes or essential characteristics with reference to their form, composition, texture or quality; (f) the purpose of the goods; (g) whether the article is bought for immediate consumption, that is, day-today household items; (h) the fields of manufacture; (i) the conditions under which the article is usually purchased; and (j) the channels of trade through which the goods flow, how they are distributed, marketed, displayed and sold. As mentioned, the classification of the products under the NCL is merely part and parcel of the factors to be considered in ascertaining whether the goods are related It is not sufficient to state that the goods involved herein are electronic products under Class 9 in order to establish relatedness between the goods, for this only accounts for one of many considerations enumerated in Mighty Corporation. Clearly then, it was erroneous for Kolin Electronics to assume over the CA to conclude that all electronic products are related and that the coverage of one electronic product necessarily precludes the registration of a similar mark over another. In this digital age wherein electronic products have not only diversified by leaps and bounds, and are geared towards interoperability, it is difficult to assert readily, as Kolin Electronics simplistically did, that all devices that require plugging into sockets are necessarily related goods. Cast in this particular controversy, the ordinary purchaser is not the “completely unwary consumer” but is the “ordinarily intelligent buyer” considering the type of product involved . All told, We are convinced that Taiwan Kolin’s trademark registration not only covers unrelated good, but is also incapable of deceiving the ordinary intelligent buyer. The ordinary purchaser must be thought of as having, and credited with, at least a modicum of intelligence to be able to see the differences between the two trademarks in question. As a matter of fact, while both competing marks refer to the word “KOLIN” written in upper case letters and in bold font, the Court at once notes the distinct visual and aural differences between them:
Kolin Electronics’ mark is italicized and colored black
while that of Taiwan Kolin is white in pantone red color background. The differing features between the two, though they may appear minimal, are sufficient to distinguish one brand from the other Finally, in line with the foregoing discussions, more credit should be given to the “ordinary purchaser.” THANK YOU FOR LISTENING!