B3 Sanrio Company Vs Lim

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G.R. No.

168662 February 19, 2008

SANRIO COMPANY LIMITED, petitioner,


vs.
EDGAR C. LIM, doing business as ORIGNAMURA TRADING, respondent.

FACTS

Petitioner Sanrio Company Limited, a Japanese corporation, owns the copyright of various animated
characters such as "Hello Kitty," "Little Twin Stars," "My Melody," "Tuxedo Sam" and "Zashikibuta" among
others. While it is not engaged in business in the Philippines, its products are sold locally by its exclusive
distributor, Gift Gate Incorporated (GGI).

Sometime in 2001, due to the deluge of counterfeit Sanrio products, GGI asked IP Manila Associates (IPMA) to
conduct a market research to identify those factories, department stores and retail outlets manufacturing
and/or selling fake Sanrio items. After conducting several test-buys in various commercial areas, IPMA
confirmed that respondent's Orignamura Trading in Tutuban Center, Manila was selling imitations of
petitioner's products.

The petitioner, Sanrio filed a complaint-affidavit with the Task-Force on Anti-Intellectual Property Poracy
(TAPP) of the Department of Justice (DOJ) against Respondent for violation of Section 27 on the Intellectual
Property Code. The TAPP dismissed the complaint due to insufficiency of evidence.

Petitioner moved for reconsideration but it was denied. Hence, it filed a petition for review in the Office of the
Chief State Prosecutor of the DOJ. In a resolution dated August 29, 2003, the Office of the Chief State
Prosecutor affirmed the TAPP resolution. The petition was dismissed for lack of reversible error.

Aggrieved, petitioner filed a petition for certiorari in the CA. On May 3, 2005, the appellate court dismissed
the petition on the ground of prescription. It based its action on Act 3326 which states:

According to the CA, because no complaint was filed in court within two years after the commission of the
alleged violation, the offense had already prescribed.

ISSUE

Whether or not the alleged violation of the IPC has prescribed.

HELD

NO. The Supreme Court averred that the CA erred in concluding that the alleged violations of the IPC had
prescribed because it had actually filed a complaint with TAPP of the DOJ.

Filing of the Complaint in the DOJ Tolled the Prescriptive Period

Section 2 of Act 3326 provides that the prescriptive period for violation of special laws starts on the day such
offense was committed and is interrupted by the institution of proceedings against respondent (i.e., the
accused).

Petitioner in this instance filed its complaint-affidavit on April 4, 2002 or one year, ten months and four days
after the NBI searched respondent's premises and seized Sanrio merchandise therefrom. Although no
information was immediately filed in court, respondent's alleged violation had not yet prescribed. 30
In the recent case of Brillantes v. Court of Appeals,31 we affirmed that the filing of the complaint for purposes
of preliminary investigation interrupts the period of prescription of criminal responsibility. 32 Thus, the
prescriptive period for the prosecution of the alleged violation of the IPC was tolled by petitioner's timely
filing of the complaint-affidavit before the TAPP.

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