236

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

G.R. No. 138900. September 20, 2005.

LEVI STRAUSS & CO., & LEVI STRAUSS (PHILS.), INC.,

petitioners, vs. CLINTON APPARELLE, INC., respondent.
Provisional Remedies Injunctions Injunction is accepted as
the strong arm of equity or a transcendent remedy to be used
cautiously as it affects the respective rights of the parties, and only
upon full conviction on the part of the court of its extreme
necessity. Section 1, Rule 58 of the Rules of Court defines a
preliminary injunction as an order granted at any stage of an
action prior to the judgment or final order requiring a party or a
court, agency or a person to refrain from a particular act or acts.
Injunction is accepted as the strong arm of equity or a
transcendent remedy to be used cautiously as it affects the
respective rights of the parties, and only upon full conviction on
the part of the court of its extreme necessity. An extraordinary
remedy, injunction is designed to preserve or maintain the status
quo of things and is generally availed of to prevent actual or
threatened acts until the merits of the case can be heard. It may
be resorted to only by a litigant for the preservation or protection
of his rights or interests and for no other purpose during the
pendency of the principal action. It is resorted to only when there
is a pressing necessity to avoid injurious consequences, which
cannot be remedied under any standard compensation. The
resolution of an application for a writ of preliminary injunction
rests upon the existence of an emergency or of a special recourse
before the main case can be heard in due course of proceedings.
_______________
*

SECOND DIVISION.

237

VOL. 470, SEPTEMBER 20, 2005

237

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

Same Same Injunction is not a remedy to protect or enforce

contingent, abstract, or future rightsit will not issue to protect a
right not in esse and which may never arise, or to restrain an act
which does not give rise to a cause of action.Under the cited
provision, a clear and positive right especially calling for judicial
protection must be shown. Injunction is not a remedy to protect or
enforce contingent, abstract, or future rights it will not issue to
protect a right not in esse and which may never arise, or to
restrain an act which does not give rise to a cause of action. There
must exist an actual right. There must be a patent showing by the
complaint that there exists a right to be protected and that the
acts against which the writ is to be directed are violative of said
right.
Same Same Kinds of Preliminary Injunction.There are
generally two kinds of preliminary injunction: (1) a prohibitory
injunction which commands a party to refrain from doing a
particular act and (2) a mandatory injunction which commands
the performance of some positive act to correct a wrong in the
past.
Same Same The exercise of discretion by the trial court in
injunctive matters is generally not interfered with save in cases of
manifest abuse.The Court of Appeals did not err in reviewing
proof adduced by petitioners to support its application for the
issuance of the writ. While the matter of the issuance of a writ of
preliminary injunction is addressed to the sound discretion of the
trial court, this discretion must be exercised based upon the
grounds and in the manner provided by law. The exercise of
discretion by the trial court in injunctive matters is generally not
interfered with save in cases of manifest abuse. And to determine
whether there was abuse of discretion, a scrutiny must be made of
the bases, if any, considered by the trial court in granting
injunctive relief. Be it stressed that injunction is the strong arm of
equity which must be issued with great caution and deliberation,
and only in cases of great injury where there is no commensurate
remedy in damages. In the present case, we find that there was
scant justification for the issuance of the writ of preliminary
injunction.
Intellectual Property Code of the Philippines (R.A. No. 8293)
Trademarks According to Section 138 of Republic Act No. 8293,
the Certificate of Registration is a prima facie evidence of the

validity of the registration, the registrants ownership of the mark

and of the exclusive right to use the same in connection with the
goods or ser
238

238

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

vices and those that are related thereto specified in the certificate.
Petitioners anchor their legal right to Dockers and Design
trademark on the Certificate of Registration issued in their favor
by the Bureau of Patents, Trademarks and Technology Transfer.
According to Section 138 of Republic Act No. 8293, this Certificate
of Registration is prima facie evidence of the validity of the
registration, the registrants ownership of the mark and of the
exclusive right to use the same in connection with the goods or
services and those that are related thereto specified in the
certificate. Section 147.1 of said law likewise grants the owner of
the registered mark the exclusive right to prevent all third parties
not having the owners consent from using in the course of trade
identical or similar signs for goods or services which are identical
or similar to those in respect of which the trademark is registered
if such use results in a likelihood of confusion.
Same Same Given the single registration of the trademark
Dockers and Design and considering that respondent only uses
the assailed device but a different word mark, the right to prevent
the latter from using the challenged Paddocks device is far from
clear. It is not evident whether the single registration of the
trademark Dockers and Design confers on the owner the right to
prevent the use of a fraction thereof in the course of trade.
Attention should be given to the fact that petitioners registered
trademark consists of two elements: (1) the word mark Dockers
and (2) the wingshaped design or logo. Notably, there is only one
registration for both features of the trademark giving the
impression that the two should be considered as a single unit.
Clinton Apparelles trademark, on the other hand, uses the
Paddocks word mark on top of a logo which according to
petitioners is a slavish imitation of the Dockers design. The two
trademarks apparently differ in their word marks (Dockers and
Paddocks), but again according to petitioners, they employ
similar or identical logos. It could thus be said that respondent

only appropriates petitioners logo and not the word mark

Dockers it uses only a portion of the registered trademark and
not the whole. Given the single registration of the trademark
Dockers and Design and considering that respondent only uses
the assailed device but a different word mark, the right to prevent
the latter from using the challenged Paddocks device is far from
clear. Stated otherwise, it is not evident whether the single
registration of the trademark Dockers and Design confers on the
owner the right to
239

VOL. 470, SEPTEMBER 20, 2005

239

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

prevent the use of a fraction thereof in the course of trade. It is

also unclear whether the use without the owners consent of a
portion of a trademark registered in its entirety constitutes
material or substantial invasion of the owners right.
Same Same Trademark Dilution Words and Phrases
Trademark dilution is the lessening of the capacity of a famous
mark to identify and distinguish good or services To be eligible for
the protection from dilution, there has to be a finding that: (1) the
trademark sought to be protected is famous and distinctive (2) the
use by another began after the owners mark became famous and
(3) such subsequent use defames the owners mark.Trademark
dilution is the lessening of the capacity of a famous mark to
identify and distinguish goods or services, regardless of the
presence or absence of: (1) competition between the owner of the
famous mark and other parties or (2) likelihood of confusion,
mistake or deception. Subject to the principles of equity, the
owner of a famous mark is entitled to an injunction against
another persons commercial use in commerce of a mark or trade
name, if such use begins after the mark has become famous and
causes dilution of the distinctive quality of the mark. This is
intended to protect famous marks from subsequent uses that blur
distinctiveness of the mark or tarnish or disparage it. Based on
the foregoing, to be eligible for protection from dilution, there has
to be a finding that: (1) the trademark sought to be protected is
famous and distinctive (2) the use by respondent of Paddocks
and Design began after the petitioners mark became famous
and (3) such subsequent use defames petitioners mark. In the

case at bar, petitioners have yet to establish whether Dockers

and Design has acquired a strong degree of distinctiveness and
whether the other two elements are present for their cause to fall
within the ambit of the invoked protection. The Trends MBL
Survey Report which petitioners presented in a bid to establish
that there was confusing similarity between two marks is not
sufficient proof of any dilution that the trial court must enjoin.
Actions Injunction Judgments The trial court must state its
own findings of fact and cite particular law to justify grant of
preliminary injunction.The Court also finds that the trial
courts order granting the writ did not adequately detail the
reasons for the grant, contrary to our ruling in University of the
Philippines v. Hon. Catungal Jr., wherein we held that: The trial
court must state its own findings of fact and cite particular law to
justify grant of pre
240

240

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

liminary injunction. Utmost care in this regard is demanded. The

trial court in granting the injunctive relief tersely ratiocinated
that the plaintiffs appear to be entitled to the relief prayed for
and this Court is of the considered belief and humble view that,
without necessarily delving on the merits, the paramount interest
of justice will be better served if the status quo shall be
maintained. Clearly, this statement falls short of the
requirement laid down by the abovequoted case. Similarly, in
Developers Group of Companies, Inc. v. Court of Appeals, we held
that it was not enough for the trial court, in its order granting
the writ, to simply say that it appeared after hearing that
plaintiff is entitled to the relief prayed for.
Same Same Damages A writ of injunction should not be
issued when an action for damages would adequately compensate
the injuries caused.We agree with the Court of Appeals in its
holding that the damages the petitioners had suffered or continue
to suffer may be compensated in terms of monetary consideration.
As held in Government Service Insurance System v. Florendo: . . .
a writ of injunction should never have been issued when an action
for damages would adequately compensate the injuries caused.
The very foundation of the jurisdiction to issue the writ of

injunction rests in the probability of irreparable injury,

inadequacy of pecuniary estimation and the prevention of the
multiplicity of suits, and where facts are not shown to bring the
case within these conditions, the relief of injunction should be
refused.
Same Same The prevailing rule is that the courts should
avoid issuing a writ of preliminary injunction that would in effect
dispose of the main case without trial.We also believe that the
issued injunctive writ, if allowed, would dispose of the case on the
merits as it would effectively enjoin the use of the Paddocks
device without proof that there is basis for such action. The
prevailing rule is that courts should avoid issuing a writ of
preliminary injunction that would in effect dispose of the main
case without trial. There would be a prejudgment of the main case
and a reversal of the rule on the burden of proof since it would
assume the proposition which petitioners are inceptively bound to
prove.
Same Same Trademarks and Trade Names Certiorari The
appellate court goes beyond the issue brought up on certiorari
when it makes a statement and touches on the merits of the
infringement case which is yet to be decided by the trial court.
We believe the Court of
241

VOL. 470, SEPTEMBER 20, 2005

241

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

Appeals overstepped its authority when it declared that the

alleged similarity as to the two logos is hardly confusing to the
public. The only issue brought before the Court of Appeals
through respondents Petition under Rule 65 of the Rules of Court
involved the grave abuse of discretion allegedly committed by the
trial court in granting the TRO and the writ of preliminary
injunction. The appellate court in making such a statement went
beyond that issue and touched on the merits of the infringement
case, which remains to be decided by the trial court. In our view,
it was premature for the Court of Appeals to declare that there is
no confusion between the two devices or logos. That matter
remains to be decided on by the trial court.
Same Same Due Process In applications for preliminary
injunction, the requirement of hearing and prior notice before

injunction may issue has been relaxed to the point that not all the
petitions for preliminary investigation must undergo trialtype
hearing, it being a hornbook doctrine that a formal or trialtype
hearing is not at all times and in all instances essential to due
process.We have no contention against the procedure adopted
by the trial court in resolving the application for an injunctive
writ and we believe that respondent was accorded due process.
Due process, in essence, is simply an opportunity to be heard. And
in applications for preliminary injunction, the requirement of
hearing and prior notice before injunction may issue has been
relaxed to the point that not all petitions for preliminary
injunction must undergo a trialtype hearing, it being a hornbook
doctrine that a formal or trialtype hearing is not at all times and
in all instances essential to due process. Due process simply
means giving every contending party the opportunity to be heard
and the court to consider every piece of evidence presented in
their favor. Accordingly, this Court has in the case of Co v.
Calimag, Jr., rejected a claim of denial of due process where such
claimant was given the opportunity to be heard, having submitted
his counteraffidavit and memorandum in support of his position.

PETITION for review on certiorari of the decision and

resolution of the Court of Appeals.
The facts are stated in the opinion of the Court.
Poblador, Bautista & Reyes for petitioner.
Arnold V. Guerrero for private respondent.
242

242

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

TINGA, J.:
1

Before us is a petition for review on certiorari under Rule

45 of the 1997 Rules of Civil Procedure filed by Levi
Strauss & Co. (LS & Co.) and Levi Strauss (Philippines),
2
Inc. (LSPI)3 assailing the Court of Appeals Decision and
Resolution respectively dated 21 December 1998 and 10
May 1999. The questioned Decision granted respondents4
prayer for a writ of preliminary injunction in its Petition5
and set aside the6 trial courts orders dated 15 May 1998
and 4 June 1998 which respectively granted petitioners
prayer for the issuance of a temporary restraining order

(TRO) and application for the issuance of a writ of

preliminary injunction.
7
This case stemmed from the Complaint for Trademark
Infringement, Injunction and Damages filed by petitioners
LS &
Co. and LSPI against respondent Clinton Apparelle,
**
Inc. (Clinton Aparelle) together with an alternative
defendant,
Olympian
Garments,
Inc.
(Olympian
Garments),8 before the Regional Trial Court of Quezon City,
Branch 90. The Complaint was docketed as Civil Case No.
Q9834252, entitled Levi Strauss & Co. and Levi Strauss
(Phils.), Inc. v. Clinton Aparelle, Inc. and/or Olympian
Garments, Inc.
The Complaint alleged that LS & Co., a foreign
corporation duly organized and existing under the laws of
the State of Delaware, U.S.A., and engaged in the apparel
business, is the
_______________
1

Rollo, pp. 2691 Dated 6 July 1999.

Id., at pp. 93101 Penned by Associate Justice Eloy R. Bello, Jr. and

concurred in by Associate Justices Salome A. Montoya and Ruben T.

Reyes.
3

Id., at p. 103.

Id., at pp. 104142.

RTC Records, p. 79.

CA Rollo, p. 42.

RTC Records, pp. 19 Dated 29 April 1998.

**
8

It calls itself Clinton Apparel, Inc.

The case was filed on 30 April 1998 Rollo, pp. 41, 94.
243

VOL. 470, SEPTEMBER 20, 2005

243

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

owner by prior adoption and use since 1986 of the

internationally famous Dockers and Design trademark.
This ownership is evidenced by its valid and existing
registrations in various member countries of the Paris
Convention. In the Philippines, it has a Certificate of
Registration No. 46619 in the Principal Register for use of
said trademark on pants, shirts, blouses,
skirts, shorts,
9
sweatshirts and jackets under Class 25.
The Dockers and Design trademark was first used in

the Philippines in or about May 1988, by LSPI, a domestic

corporation engaged in the manufacture, sale and
distribution of various products bearing trademarks owned
by LS & Co. To date, LSPI continues to manufacture and
sell Dockers
Pants with the Dockers and Design
10
trademark.
LS & Co. and LSPI further alleged that they discovered
the presence in the local market of jeans under the brand
name Paddocks using a device which is substantially, if
not exactly, similar to the Dockers and Design trademark
owned by and registered in the name of LS & Co., without
its consent. Based on their information and belief, they
added, Clinton Apparelle manufactured and continues to
manufacture such Paddocks jeans and other apparel.
However, since LS & Co. and LSPI are unsure if both, or
just one of impleaded defendants are behind the
manufacture and sale of the Paddocks jeans complained
11
of, they brought this suit under
Section
13,
Rule
3
of the
12
1997 Rules of Civil Procedure. The Complaint contained a
prayer that reads as follows:
_______________
9

Rollo, pp. 2931.

10

Id., at pp. 4142.

11

SEC. 13. Alternative defendants.Where the plaintiff is uncertain

against who of several persons he is entitled to relief, he may join any or

all of them as defendants in the alternative, although a right to relief
against one may be inconsistent with a right of relief against the other.
12

Rollo, p. 94.
244

244

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

1. That upon the filing of this complaint, a temporary

restraining order be immediately issued restraining
defendants, their officers, employees, agents,
representatives, dealers, retailers or assigns from
committing the acts herein complained of, and,
specifically, for the defendants, their officers,
employees, agents, representatives, dealers and
retailers or assigns, to cease and desist from
manufacturing, distributing, selling, offering for

sale, advertising, or otherwise using denims, jeans

or pants with the design herein complained of as
substantially, if not exactly similar, to plaintiffs
Dockers and Design trademark.
2. That after notice and hearing, and pending trial on
the merits, a writ of preliminary injunction be
issued enjoining defendants, their officers,
employees, agents, dealers, retailers, or assigns
from manufacturing, distributing, selling, offering
for sale, advertising, jeans the design herein
complained of as substantially, if not exactly
similar, to plaintiffs Dockers and Design
trademark.
3. That after trial on the merits, judgment be
rendered as follows:
a. Affirming and making permanent the writ of
preliminary injunction
b. Ordering that all infringing jeans in the possession
of either or both defendants as the evidence may
warrant, their officers, employees, agents, retailers,
dealers or assigns, be delivered to the Honorable
13
Court of plaintiffs, and be accordingly destroyed
Acting on the prayer for
the issuance of a TRO, the trial
14
court issued an Order setting it for hearing on 5 May
1998. On said date, as respondent failed to appear despite
notice and the other defendant, Olympian Garments, had
yet to15be notified, the hearing was rescheduled on 14 May
1998.
On 14 May 1998, neither Clinton Apparelle nor
Olympian Garments appeared. Clinton Apparelle claimed
that it was not notified of such hearing. Only Olympian
Garments alleg
_______________
13

RTC Records, pp. 78.

14

Rollo, p. 378 Dated 4 May 1998.

15

Id., at pp. 727728.

245

VOL. 470, SEPTEMBER 20, 2005

245

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

edly had been issued with summons. Despite the absence of

the defendants, the hearing16 on the application for the
issuance of a TRO continued.
17
The following day, the trial court issued an Order
granting the TRO applied for, the pertinent portions of
which state:
. . . Considering the absence of counsel/s for the defendant/s
during the summary hearing scheduled on May 5, 1998 and also
during the rescheduled summary hearing held on May 14, 1998
set for the purpose of determining whether or not a Temporary
Restraining Order shall be issued, this Court allowed the counsel
for the plaintiffs to present on May 14, 1998 their
arguments/evidences in support of their application. After hearing
the arguments presented by the counsel for the plaintiffs during
the summary hearing, this Court is of the considered and humble
view that grave injustice and irreparable injury to the plaintiffs
would arise before the matter of whether or not the application for
the issuance of a Writ of Preliminary Injunction can be heard, and
that, in the interest of justice, and in the meantime, a Temporary
Restraining Order be issued.
WHEREFORE, let this Temporary Restraining Order be issued
restraining the defendants, their officers, employees, agents,
representatives, dealers, retailers or assigns from committing the
acts complained of in the verified Complaint, and specifically, for
the defendants, their officers, employees, agents, representatives,
dealers and retailers or assigns, to cease and desist from
manufacturing, distributing, selling, offering for sale, advertising
or otherwise using denims, jeans or pants with the design
complained of in the verified Complaint as substantially, if not
exactly similar, to plaintiffs Dockers and Design trademark
until after the application/prayer for the issuance of a Writ of
Preliminary Injunction is heard/ resolved, or until further orders
from this Court.
The hearing on the application for the issuance of a Writ of
Preliminary Injunction as embodied in the verified Complaint is
set on May 26, 1998 (Tuesday) at 2:00 P.M. which setting is
intransfer
_______________
16

Id., at pp. 95, 678.

17

RTC Records, p. 79.

246

246

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

able in character considering that the lifetime of this Temporary

18
Restraining Order is twenty (20) days from date hereof.

On 4 June 1998, the trial court issued another Order

granting the writ of preliminary injunction, to wit:

19

ORDER
This resolves the plaintiffs application or prayer for the issuance
of a writ of preliminary injunction as embodied in the verified
complaint in this case. Parenthetically, this Court earlier issued a
temporary restraining order. (see Order dated May 15, 1998 see
also Order dated May 26, 1998)
After a careful perusal of the contents of the pleadings and
documents on record insofar as they are pertinent to the issue
under consideration, this Court finds that at this point in time,
the plaintiffs appear to be entitled to the relief prayed for and this
Court is of the considered belief and humble view that, without
necessarily delving on the merits, the paramount interest of
justice will be better served if the status quo shall be maintained
and that an injunction bond of P2,500,000.00 appears to be in
order. (see Sections 3 and 4, Rule 58, 1997 Rules of Civil
Procedure)
IN VIEW OF THE FOREGOING, the plaintiffs prayer for the
issuance of a writ of preliminary injunction is GRANTED.
Accordingly, upon the plaintiffs filing, within ten (10) days from
their receipt hereof, an injunction bond of P2,500,000.00 executed
to the defendants to the effect that the plaintiffs will pay all
damages the defendants may sustain by reason of this injunction
in case the Court should finally decide that the plaintiffs are not
entitled thereto, let a writ of preliminary injunction issue
enjoining or restraining the commission of the acts complained of
in the verified Complaint in this case, and specifically, for the
defendants, their officers, employees, agents, representatives,
dealers and retailers or assigns or persons acting in their behalf
to cease and desist from manufacturing, distributing, selling,
offering for sale, advertising, or otherwise using, denims, jeans or
pants with the design complained of in the verified Complaint in
this case, which is substantially, if not

_______________
18

Ibid.

19

RTC Records, p. 417.

247

VOL. 470, SEPTEMBER 20, 2005

247

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

exactly, similar to plaintiffs DOCKERS and DESIGN

trademark or logo as covered by the Bureau of Patents,
Trademarks and Technology Transfer Certificate of Registration
No. 46619, until after this case shall have been decided
on the
20
merits and/or until further orders from this Court.

The evidence considered by the trial court in granting

injunctive relief were as follows: (1) a certified true copy of
the certificate of trademark registration for Dockers and
Design (2) a pair of DOCKERS pants bearing the
Dockers and Design trademark (3) a pair of Paddocks
pants bearing respondents assailed logo (4) the Trends
MBL Survey Report purportedly proving that there was
confusing similarity between two marks (5) the affidavit of
one Bernabe Alajar which recounted petitioners prior
adoption, use and registration of the Dockers and Design
trademark and (6) the affidavit of one Mercedes Abad of
Trends MBL, Inc. which detailed the methodology21 and
procedure used in their survey and the results thereof.
22
Clinton Apparelle thereafter filed
a
Motion
to
Dismiss
23
and a Motion for Reconsideration of the Order granting
the writ of preliminary24 injunction. Meantime, the trial
court issued an Order approving the bond filed by
petitioners.
25
On 22 June 1998, the trial court required the parties
to
file
their
respective
citation
of
authorities/jurisprudence/ Supreme Court decisions on
whether or not the trial court may issue the writ of
preliminary injunction pending the resolution of the Motion
for Reconsideration and the Motion to Dismiss filed by
respondent.
_______________
20

Ibid.

21

Rollo, pp. 749750.

22

RTC Records, 418424 Dated 5 June 1998.

23

CA Rollo, pp. 6671 Dated 5 June 1998.

24

RTC Records, p. 494 Dated 18 June 1998.

25

In an Order of even date Id., at p. 495.

248

248

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

On 2 October 1998, the trial court denied Clinton

Apparelles Motion to Dismiss and
Motion for
26
Reconsideration in an Omnibus Order, the pertinent
portions of which provide:
After carefully going over the contents of the pleadings in
relation to pertinent portions of the records, this Court is of the
considered and humble view that:
On the first motion, the arguments raised in the plaintiffs
aforecited Consolidated Opposition appears to be meritorious. Be
that as it may, this Court would like to emphasize, among other
things, that the complaint states a cause of action as provided
under paragraphs 1 to 18 thereof.
On the second motion, the arguments raised in the plaintiffs
aforecited Consolidated Opposition likewise appear to be
impressed with merit. Besides, there appears to be no strong and
cogent reason to reconsider and set aside this Courts Order dated
June 4, 1998 as it has been shown so far that the trademark or
logo of defendants is substantially, if not exactly, similar to
plaintiffs DOCKERS and DESIGN trademark or logo as covered
by BPTTT Certificate of Registration No. 46619 even as the
BPTTT Certificate of Registration No. 49579 of Clinton Apparelle,
Inc. is only for the mark or word PADDOCKS (see Records, p.
377) In any event, this Court had issued an Order dated June 18,
1998 for the issuance of the writ of preliminary injunction after
the plaintiffs filed the required bond of P2,500,000.00.
IN VIEW OF THE FOREGOING, the aforecited Motion To
Dismiss and Motion For Reconsideration are both DENIED for
lack of merit, and accordingly, this Courts Order dated June 18,
1998 for the issuance of the writ of preliminary injunction is
REITERATED so the writ of preliminary injunction could be
implemented unless the implementation thereof is restrained by
the Honorable Court of Appeals or Supreme Court.

The writ of preliminary injunction was thereafter issued on

27

8 October 1998.
_______________
26

Id., at p. 576.

27

Id., at p. 577.
249

VOL. 470, SEPTEMBER 20, 2005

249

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

Thus, Clinton
Apparelle filed with the Court of Appeals a
28
Petition for certiorari, prohibition and mandamus with
prayer for the issuance of a temporary restraining order
and/or writ of preliminary injunction, assailing the orders
of the trial court dated 15 May 1998, 4 June 1998 and 2
October 1998.
On 20 29October 1998, the Court of Appeals issued a
Resolution requiring herein petitioners to file their
comment on the Petition and at the same time issued the
prayedfor temporary restraining order.
The appellate court rendered on 21 December 1998 its
now assailed Decision granting Clinton Apparelles
petition. The Court of Appeals held that the trial court did
not follow the procedure required by law for the issuance of
a temporary restraining order as Clinton Apparelle was not
duly notified of the date of the summary hearing for its
issuance. Thus, the Court of
Appeals ruled that the TRO
30
had been improperly issued.
The Court of Appeals also held that the issuance of the
writ of preliminary injunction is questionable. In its
opinion, herein petitioners failed to sufficiently establish its
material and substantial right to have the writ issued.
Secondly, the Court of Appeals observed that the survey
presented by petitioners to support their contentions was
commissioned by petitioners. The Court of Appeals
remarked that affidavits taken ex parte are generally
considered to be inferior to testimony given in open court.
The appellate court also considered that the injury
petitioners have suffered or are currently suffering may be
compensated in terms of monetary consideration, if 31after
trial, a final judgment shall be rendered in their favor.

_______________
28

CA Rollo, pp. 240 Dated 12 October 1998.

29

Id., at pp. 117118.

30

Rollo, p. 98.

31

Id., at pp. 99100.

250

250

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

In addition, the Court of Appeals strongly believed that the

implementation of the questioned writ would effectively
shut down respondents business, which in its opinion
should not be sanctioned. The Court of Appeals thus set
aside the orders of the trial court dated 15 May 1998 and 4
June 1998, respectively issuing a temporary restraining
order and granting the issuance of a writ of preliminary
injunction.
32
With the denial of their Motion for Reconsideration,
petitioners are now before this Court seeking a review of
the appellate courts Decision and Resolution. LS & Co. and
LSPI claim that the Court of Appeals committed serious
error in: (1) disregarding the welldefined limits of the writ
of certiorari that questions on the sufficiency of evidence
are not to be resolved in such a petition (2) in holding that
there was no confusion between the two marks (3) in
ruling that the erosion of petitioners trademark is not
protectable by injunction (4) in ignoring the procedure
previously agreed on by the parties and which was adopted
by the trial court and (5) in declaring that the preliminary
injunction issued by the trial court will lead to the closure
of respondents business.
33
In its Comment, Clinton Apparelle maintains that only
questions of law may be raised in an appeal by certiorari
under Rule 45 of the Rules of Court. It asserts that the
question of whether the Court of Appeals erred in: (1)
disregarding the survey evidence (2) ruling that there was
no confusion between the two marks and (c) finding that
the erosion of petitioners trademark may not be protected
by injunction, are issues not within the ambit of a petition
for review on certiorari under Rule 45. Clinton Apparelle
also contends that the Court of Appeals acted correctly
when it overturned the writ of preliminary injunction

issued by the trial court. It believes that the issued writ in

effect disturbed the status quo and disposed of the main
case without trial.
_______________
32

CA Rollo, pp. 12511268 Dated 11 January 1999.

33

Rollo, pp. 601628 Dated 18 October 1999 In a Resolution dated 10

May 1999, id., at p. 103.

251

VOL. 470, SEPTEMBER 20, 2005

251

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

There is no merit in the petition.

At issue is whether the issuance of the writ of
preliminary injunction by the trial court was proper and
whether the Court of Appeals erred in setting aside the
orders of the trial court.
Section 1, Rule 58 of the Rules of Court defines a
preliminary injunction as an order granted at any stage of
an action prior to the judgment or final order requiring a
party or a court, agency or a person to refrain from a
particular act or acts. Injunction is accepted as the strong
arm of equity or a transcendent remedy to be used
cautiously as it affects the respective rights of the parties,
and only upon full conviction on the part of the court of its
extreme necessity. An extraordinary remedy, injunction is
designed to preserve or maintain the status quo of things
and is generally availed of to prevent actual or34threatened
acts until the merits of the case can be heard. It may be
resorted to only by a litigant for the preservation or
protection of his rights or interests and for no 35other
purpose during the pendency of the principal action. It is
resorted to only when there is a pressing necessity to avoid
injurious consequences, which cannot be remedied under
any standard compensation. The resolution of an
application for a writ of preliminary injunction rests upon
the existence of an emergency or of a special recourse
before the 36
main case can be heard in due course of
proceedings.
Section 3, Rule 58, of the Rules of Court enumerates the
grounds for the issuance of a preliminary injunction:

_______________
34

Toyota Motor Phils. Corporation Workers Association (TMPCWA) v.

Court of Appeals, G.R. No. 148924, 24 September 2003, 412 SCRA 69, 85
86.
35

Id. Government Service Insurance System v. Florendo, G.R. No.

48603, 29 September 1989, 178 SCRA 76, 8384.

36

Toyota Motor Phils. Corporation Workers Association (TMPCWA) v.

Court of Appeals id., at pp. 8586.

252

252

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

SEC. 3. Grounds for issuance of preliminary injunction.A

preliminary injunction may be granted when it is established:
(a) That the applicant is entitled to the relief demanded, and
the whole or part of such relief consists in restraining the
commission or continuance of the act or acts complained
of, or in requiring the performance of an act or acts, either
for a limited period or perpetually
(b) That the commission, continuance, or nonperformance of
the act or acts complained of during the litigation would
probably work injustice to the applicant or
(c) That a party, court, agency or a person is doing,
threatening, or is attempting to do, or is procuring or
suffering to be done, some act or acts probably in violation
of the rights of the applicant respecting the subject of the
action or proceeding, and tending to render the judgment
ineffectual.

Under the cited provision, a clear and positive right

especially calling for judicial protection must be shown.
Injunction is not a remedy to protect or enforce contingent,
abstract, or future rights it will not issue to protect a right
not in esse and which may never arise, or to restrain an act
which does not give rise
to a cause of action. There must
37
exist an actual right. There must be a patent showing by
the complaint that there exists a right to be protected and
that the acts against 38which the writ is to be directed are
violative of said right.
There are generally two kinds of preliminary injunction:
(1) a prohibitory injunction which commands a party to

refrain from doing a particular act and (2) a mandatory

injunction which commands the performance
of some
39
positive act to correct a wrong in the past.
_______________
37

Republic of the Philippines v. Judge Villarama, Jr., 344 Phil. 288,

302303 278 SCRA 736, 749 (1997).

38

Government Service Insurance System v. Florendo, supra note 35

National Power Corporation v. Vera, G.R. No. 83558, 27 February 1989,

170 SCRA 721, 727.
39

HERRERA, OSCAR M., REMEDIAL LAW (1999 Edition) 71.

253

VOL. 470, SEPTEMBER 20, 2005

253

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

The Court of Appeals did not err in reviewing proof

adduced by petitioners to support its application for the
issuance of the writ. While the matter of the issuance of a
writ of preliminary injunction is addressed to the sound
discretion of the trial court, this discretion must be
exercised based upon the grounds and in the manner
provided by law. The exercise of discretion by the trial
court in injunctive matters is generally
not interfered with
40
save in cases of manifest abuse. And to determine
whether there was abuse of discretion, a scrutiny must be
made of the bases, if any, considered by the trial court in
granting injunctive relief. Be it stressed that injunction is
the strong arm of equity which must be issued with great
caution and deliberation, and only in cases of great 41injury
where there is no commensurate remedy in damages.
In the present case, we find that there was scant
justification for the issuance of the writ of preliminary
injunction.
Petitioners anchor their legal right to Dockers and
Design trademark on the Certificate of Registration issued
in their favor by the***Bureau of Patents, Trademarks and
Technology Transfer.
According to Section 138 of Republic
42
Act No. 8293, this Certificate of Registration is prima
facie evidence of the validity of the registration, the
registrants ownership of the mark and of the exclusive
right to use the same in connection with the goods or
services and those that are related thereto specified in the

certificate. Section 147.1 of said law likewise grants the

owner of the registered mark the exclusive right to prevent
all third parties not having the owners consent from using
in the course of trade identical or similar signs for goods or
services which are identical or similar to
_______________
40

Government Service Insurance System v. Florendo, supra note 35 at

p. 89.
41

University of the Philippines v. Hon. Catungal, Jr., 338 Phil. 728,

743 272 SCRA 221, 236 (1997).

***
42

Now called Intellectual Property Office.

Otherwise known as the Intellectual Property Code of the

Philippines.
254

254

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

those in respect of which the trademark is registered if

such use results in a likelihood of confusion.
However, attention should be given to the fact that
petitioners registered trademark consists of two elements:
(1) the word mark Dockers and (2) the wingshaped
design or logo. Notably, there is only one registration for
both features of the trademark giving the impression that
the two should be considered as a single unit. Clinton
Apparelles trademark, on the other hand, uses the
Paddocks word mark on top of a logo which according to
petitioners is a slavish imitation of the Dockers design.
The two trademarks apparently differ in their word marks
(Dockers and Paddocks), but again according to
petitioners, they employ similar or identical logos. It could
thus be said that respondent only appropriates
petitioners logo and not the word mark Dockers it uses
only a portion of the registered trademark and not the
whole.
Given the single registration of the trademark Dockers
and Design and considering that respondent only uses the
assailed device but a different word mark, the right to
prevent the latter from using the challenged Paddocks
device is far from clear. Stated otherwise, it is not evident
whether the single registration of the trademark Dockers

and Design confers on the owner the right to prevent the

use of a fraction thereof in the course of trade. It is also
unclear whether the use without the owners consent of a
portion of a trademark registered in its entirety constitutes
material or substantial invasion of the owners right.
It is likewise not settled whether the wingshaped logo,
as opposed to the word mark, is the dominant or central
feature of petitioners trademarkthe feature that prevails
or is retained in the minds of the publican imitation of
which creates the likelihood of deceiving
the public and
43
constitutes trademark infringement. In sum, there are
vital matters
_______________
43

See Co Tiong Sa v. Director of Patents, 95 Phil. 1, 5 (1954).

255

VOL. 470, SEPTEMBER 20, 2005

255

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

which have yet and may only be established through a full

blown trial.
From the above discussion, we find that petitioners
right to injunctive relief has not been clearly and
unmistakably demonstrated. The right has yet to be
determined. Petitioners also failed to show proof that there
is material and substantial invasion of their right to
warrant the issuance of an injunctive writ. Neither were
petitioners able to show any urgent and permanent
necessity for the writ to prevent serious damage.
Petitioners wish to impress upon the Court the urgent
necessity for injunctive relief, urging that the erosion or
dilution of their trademark is protectable. They assert that
a trademark owner does not have to wait until the mark
loses its distinctiveness to obtain injunctive relief, and that
the mere use by an infringer of a registered mark is
already actionable even if he has not yet profited thereby or
has damaged the trademark owner.
Trademark dilution is the lessening of the capacity of a
famous mark to identify and distinguish goods or services,
regardless of the presence or absence of: (1) competition
between the owner of the famous mark and other parties
or (2) likelihood of confusion, mistake or deception. Subject

to the principles of equity, the owner of a famous mark is

entitled to an injunction against another persons
commercial use in commerce of a mark or trade name, if
such use begins after the mark has become famous and
causes dilution of the distinctive quality of the mark. This
is intended to protect famous marks from subsequent uses
that blur distinctiveness
of the mark or tarnish or
44
disparage it.
Based on the foregoing, to be eligible for protection from
dilution, there has to be a finding that: (1) the trademark
sought to be protected is famous and distinctive (2) the use
_______________
44

Toys R Us v. Akkaoui, 40 U.S. P.Q. 2d (BNA) 1836 (N.D. Cal. 1996).

256

256

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

by respondent of Paddocks and Design began after the

petitioners mark became famous and (3) such subsequent
use defames petitioners mark. In the case at bar,
petitioners have yet to establish whether Dockers and
Design has acquired a strong degree of distinctiveness and
whether the other two elements are present for their cause
to fall within the ambit of the invoked protection. The
Trends MBL Survey Report which petitioners presented in
a bid to establish that there was confusing similarity
between two marks is not sufficient proof of any dilution
that the trial court must enjoin.
The Court also finds that the trial courts order granting
the writ did not adequately detail the reasons for the grant,
contrary to our ruling
in University of the Philippines v.
45
Hon. Catungal Jr., wherein we held that:
The trial court must state its own findings of fact and cite
particular law to justify grant of46 preliminary injunction. Utmost
care in this regard is demanded.

The trial court in granting the injunctive relief tersely

ratiocinated that the plaintiffs appear to be entitled to the
relief prayed for and this Court is of the considered belief
and humble view that, without necessarily delving on the

merits, the paramount interest of justice will be better

served if the status quo shall be maintained. Clearly, this
statement falls short of the requirement laid down by the
abovequoted case. Similarly, in Developers
Group of
47
Companies, Inc. v. Court of Appeals, we held that it was
not enough for the trial court, in its order granting the
writ, to simply say that it appeared after hearing that
plaintiff is entitled to the relief prayed for.
In addition, we agree with the Court of Appeals in its
holding that the damages the petitioners had suffered or
continue to suffer may be compensated in terms of
monetary considera
_______________
45

338 Phil. 728, 743 272 SCRA 221, 236 (1997).

46

Id.

47

G.R. No. 104583, 8 March 1993, 219 SCRA 715, 721.

257

VOL. 470, SEPTEMBER 20, 2005

257

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

tion. As held
in Government Service Insurance System v.
48
Florendo:
. . . a writ of injunction should never have been issued when an
action for damages would adequately compensate the injuries
caused. The very foundation of the jurisdiction to issue the writ of
injunction rests in the probability of irreparable injury,
inadequacy of pecuniary estimation and the prevention of the
multiplicity of suits, and where facts are not shown to bring the
case within
these conditions, the relief of injunction should be
49
refused.

We also believe that the issued injunctive writ, if allowed,

would dispose of the case on the merits as it would
effectively enjoin the use of the Paddocks device without
proof that there is basis for such action. The prevailing rule
is that courts should avoid issuing a writ of preliminary
injunction that
would in effect dispose of the main case
50
without trial. There would be a prejudgment of the main
case and a reversal of the rule on the burden of proof since
it would assume the proposition which petitioners are

51

inceptively bound to prove.

Parenthetically, we find no flaw in the Court of Appeals
disquisition on the consequences of the issued injunction.
An exercise of caution, we believe that such reflection is
necessary to weigh the alleged entitlement to the writ vis
vis its possible effects. The injunction issued in the
instant case is of a serious nature as it tends to do more
than to maintain the status quo. In fact, the assailed
injunction if sustained would bring about the result desired
by petitioners without a trial on the merits.
_______________
48

Government Service Insurance System v. Florendo, supra note 35.

49

Government Service Insurance System v. Florendo, supra note 35 at

p. 87 See Golding v. Balatbat, 36 Phil. 941, 947 (1917).

50

Searth Commodities Corp. v. Court of Appeals, G.R. No. 64220, 31

March 1992, 207 SCRA 622, 629.

51

Id., at p. 630.
258

258

SUPREME COURT REPORTS ANNOTATED

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

Then again, we believe the Court of Appeals overstepped

its authority when it declared that the alleged similarity
as to the two logos is hardly confusing to the public. The
only issue brought before the Court of Appeals through
respondents Petition under Rule 65 of the Rules of Court
involved the grave abuse of discretion allegedly committed
by the trial court in granting the TRO and the writ of
preliminary injunction. The appellate court in making such
a statement went beyond that issue and touched on the
merits of the infringement case, which remains to be
decided by the trial court. In our view, it was premature for
the Court of Appeals to declare that there is no confusion
between the two devices or logos. That matter remains to
be decided on by the trial court.
Finally, we have no contention against the procedure
adopted by the trial court in resolving the application for
an injunctive writ and we believe that respondent was
accorded due process. Due process, in essence, is simply an
opportunity to be heard. And in applications for

preliminary injunction, the requirement of hearing and

prior notice before injunction may issue has been relaxed to
the point that not all petitions for preliminary injunction
must undergo a trialtype hearing, it being a hornbook
doctrine that a formal or trialtype hearing is not at all
times and in all instances essential to due process. Due
process simply means giving every contending party the
opportunity to be heard and the court to consider every
piece of evidence presented in their favor. Accordingly,
this
52
Court has in the case of Co v. Calimag, Jr., rejected a
claim of denial of due process where such claimant was
given the opportunity to be heard, having submitted his
counteraffidavit
and memorandum in support of his
53
position.
_______________
52

389 Phil. 389, 394395 334 SCRA 20, 26 (2000).

53

Batangas Laguna Tayabas Bus Co., Inc. v. Bitanga, 415 Phil. 43, 55

362 SCRA 635, 646 (2001) See Co v. Judge Calimag, supra, citing
National Federation of Labor v. National Labor Relations Commission,
283 SCRA 275 (1997) and Ginete v. Court of Appeals, 296 SCRA 38 (1998).
259

VOL. 470, SEPTEMBER 20, 2005

259

Levi Strauss & Co. vs. Clinton Apparelle, Inc.

After a careful consideration of the facts and arguments of

the parties, the Court finds that petitioners did not
adequately prove their entitlement to the injunctive writ.
In the absence of proof of a legal right and the injury
sustained by the applicant, an order of the trial court
granting the issuance of an injunctive writ will be set aside
54
for having been issued with grave abuse of discretion.
Conformably, the Court of Appeals was correct in setting
aside the assailed orders of the trial court.
WHEREFORE, the instant petition is DENIED. The
Decision of the Court of Appeals dated 21 December 1998
and its Resolution dated 10 May 1999 are AFFIRMED.
Costs against petitioners.
SO ORDERED.
Puno (Chairman), AustriaMartinez, Callejo, Sr.
and ChicoNazario, JJ., concur.

Petition denied, decision and resolution affirmed.

Notes.Trademark refers to a word, name, symbol,
emblem, sign or device or any combination thereof adopted
and used by a merchant to identify, and distinguish from
others, his goods of commerce. Trademark is basically an
intellectual creation that is susceptible to ownership but
the incorporeal right is distinct from the property in the
material object subject to it. (Distilleria Washington, Inc.
vs. Court of Appeals, 263 SCRA 303 [1996])
The fact that there was an infringement means that the
trademark owner suffered losses for which it is entitled to
moderate damages. (Sambar vs. Levi Strauss & Co., 378
SCRA 364 [2002])
o0o
_______________
54

See Ong Ching Kian Chuan v. Court of Appeals, G.R. No. 130360, 15

August 2001, 363 SCRA 145, 154.

260

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