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    Section 28. Right to a Patent . - The right to a patent belongs to the inventor, his heirs, or assigns. When two (2) or more persons have jointly made an invention, the right to apatent shall belong to them jointly. (Sec. 1, !.". #o. 1$%a)

    Section 29. First to File Rule. - &' two (2) or more persons have made the invention separately and independently o' each other, the right to the patent shall belong to the personwho 'iled an application 'or sch invention, or where two or more applications are 'iled 'or the same invention, to the applicant who has the earliest 'iling date or, the earliestpriority date. (rd sentence, Sec. 1, !.". #o. 1$%a.)

    Section 67. Patent Application by Persons Not Having the Right to a Patent . . - $*.1. &' a person re'erred to in Section 2+ other than the applicant, is declared by 'inal cortorder or decision as having the right to the patent, sch person may, within three () months a'ter the decision has become 'inal

    (a) rosecte the application as his own application in place o' the applicant

    (b) /ile a new patent application in respect o' the same invention

    (c) !e0est that the application be re'sed or 

    (d) See cancellation o' the patent, i' one has already been issed.

    $*.2. The provisions o' Sbsection .2 shall apply mtatis mtandis to a new application 'iled nder Sbsection $*. 1(b). (n)

    Section 68. Remedies of the True and Actual Inventor . - &' a person, who was deprived o' the patent withot his consent or throgh 'rad is declared by 'inal cort order ordecision to be the tre and actal inventor, the cort shall order 'or his sbstittion as patentee, or at the option o' the tre inventor, cancel the patent, and award actal andother damages in his 'avor i' warranted by the circmstances. (Sec. , !.". #o. 1$%a)

    Section 31. Right of Priority . . - "n application 'or patent 'iled by any person who has previosly applied 'or the same invention in another contry which by treaty, convention, or law a''ords similar privileges to /ilipino citi3ens, shall be considered as 'iled as o' the date o' 'iling the 'oreign application rovided, That (a) the local application e4pressly

    claims priority (b) it is 'iled within twelve (12) months 'rom the date the earliest 'oreign application was 'iled and (c) a certi'ied copy o' the 'oreign application together with an

    5nglish translation is 'iled within si4 ($) months 'rom the date o' 'iling in the hilippines. (Sec. 1%, !.". #o. 1$%a)

    Section 32. The Application. - 2.1. The patent application shall be in /ilipino or 5nglish and shall contain the 'ollowing

    (a) " re0est 'or the grant o' a patent

    (b) " description o' the invention

    (c) 6rawings necessary 'or the nderstanding o' the invention

    (d) 7ne or more claims and

    (e) "n abstract.

    2.2. #o patent may be granted nless the application identi'ies the inventor. &' the applicant is not the inventor, the 7''ice may re0ire him to sbmit said athority. (Sec. 1,!.". #o. 1$%a)

    Section 33.  Appointment of Agent or Representative. - "n applicant who is not a resident o' the hilippines mst appoint and maintain a resident agent or representative in thehilippines pon whom notice or process 'or jdicial or administrative procedre relating to the application 'or patent or the patent may be served. (Sec. 11, !.". #o. 1$%a)

    Section 34. The Request . - The re0est shall contain a petition 'or the grant o' the patent, the name and other data o' the applicant, the inventor and the agent and the title o'the invention. (n)

    Section 35. Disclosure and Description of the Invention. - %.1. 6isclosre. - The application shall disclose the invention in a manner s''iciently clear and complete 'or it to becarried ot by a person silled in the art. Where the application concerns a microbiological process or the prodct thereo' and involves the se o' a micro-organism which cannotbe s''iciently disclosed in the application in sch a way as to enable the invention to be carried ot by a person silled in the art, and sch material is not available to the pblic,the application shall be spplemented by a deposit o' sch material with an international depository instittion.

    %.2. 6escription. - The !eglations shall prescribe the contents o' the description and the order o' presentation. (Sec. 18, !.". #o. 1$%a)

    Section 36. The laims. - $.1. The application shall contain one (1) or more claims which shall de'ine the matter 'or which protection is soght. 5ach claim shall be clear andconcise, and shall be spported by the description.

    $.2. The !eglations shall prescribe the manner o' the presentation o' claims. (n)

    Section 37. The Abstract . - The abstract shall consist o' a concise smmary o' the disclosre o' the invention as contained in the description, claims and drawings in pre'erablynot more than one hndred 'i'ty (1%) words. &t mst be dra'ted in a way which allows the clear nderstanding o' the technical problem, the gist o' the soltion o' that problemthrogh the invention, and the principal se or ses o' the invention. The abstract shall merely serve 'or technical in'ormation. (n)

    Section 40. Filing Date Requirements. - 8.1. The 'iling date o' a patent application shall be the date o' receipt by the 7''ice o' at least the 'ollowing elements

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    (a) "n e4press or implicit indication that a hilippine patent is soght

    (b) &n'ormation identi'ying the applicant and

    (c) 6escription o' the invention and one (1) or more claims in /ilipino or 5nglish.

    8.2. &' any o' these elements is not sbmitted within the period set by the !eglations, the application shall be considered withdrawn. (n)

    Section 41.  According a Filing Date. - The 7''ice shall e4amine whether the patent application satis'ies the re0irements 'or the grant o' date o' 'iling as provided in Section 8hereo'. &' the date o' 'iling cannot be accorded, the applicant shall be given an opportnity to correct the de'iciencies in accordance with the implementing !eglations. &' theapplication does not contain all the elements indicated in Section 8, the 'iling date shold be that date when all the elements are received. &' the de'iciencies are not remediedwithin the prescribed time limit, the application shall be considered withdrawn. (n)

    Section 42. Formality !"amination. - 82.1. "'ter the patent application has been accorded a 'iling date and the re0ired 'ees have been paid on time in accordance with the!eglations, the applicant shall comply with the 'ormal re0irements speci'ied by Section 2 and the !eglations within the prescribed period, otherwise the application shall beconsidered withdrawn.

    82.2. The !eglations shall determine the procedre 'or the re-e4amination and revival o' an application as well as the appeal to the 6irector o' atents 'rom any ' inal action bythe e4aminer. (Sec. 1$, !.". #o. 1$%a)

    Section 43. lassification and #earch. - "n application that has complied with the 'ormal re0irements shall be classi'ied and a search condcted to determine the prior art. (n)

    Section 44. Publication of Patent Application. - 88.1. The patent application shall be pblished in the &7 9a3ette together with a search docment established by or on behal'o' the 7''ice citing any docments that re'lect prior art, a'ter the e4piration o' eighteen ( 1) months 'rom the ' iling date or priority date.

    88.2. "'ter pblication o' a patent application, any interested party may inspect the application docments 'iled with the 7''ice.

    88.. The 6irector 9eneral sbject to the approval o' the Secretary o' Trade and &ndstry, may prohibit or restrict the pblication o' an application, i' in his opinion, to do sowold be prejdicial to the national secrity and interests o' the !epblic o' the hilippines. (n)

    Section 45. onfidentiality $efore Publication. - " patent application, which has not yet been pblished, and all related docments, shall not be made available 'or inspectionwithot the consent o' the applicant. (n)

    Section 46. Rights onferred by a Patent Application After Publication. - The applicant shall have all the rights o' a patentee nder Section *$ against any person who, withothis athori3ation, e4ercised any o' the rights con'erred nder Section *1 o' this "ct in relation to the invention claimed in the pblished patent application, as i' a patent had beengranted 'or that invention rovided, That the said person had

    8$.1. "ctal nowledge that the invention that he was sing was the sbject matter o' a pblished application or 

    8$.2. !eceived written notice that the invention that he was sing was the sbject matter o' a pblished application being identi'ied in the said notice by its serial nmberrovided, That the action may not be 'iled ntil a'ter the grant o' a patent on the pblished application and within 'or (8) years 'rom the commission o' the acts complained o'.

    (n)

    Section 47. %bservation by Third Parties. - /ollowing the pblication o' the patent application, any person may present observations in writing concerning the patentability o' theinvention. Sch observations shall be commnicated to the applicant who may comment on them. The 7''ice shall acnowledge and pt sch observations and comment in the'ile o' the application to which it relates. (n)

    Section 48. Request for #ubstantive !"amination. - 8.1. The application shall be deemed withdrawn nless within si4 ($) months 'rom the date o' pblication nder Section 81,a written re0est to determine whether a patent application meets the re0irements o' Sections 21 to 2* and Sections 2 to + and the 'ees have been paid on time.

    8.2. Withdrawal o' the re0est 'or e4amination shall be irrevocable and shall not athori3e the re'nd o' any 'ee. (n)

    Section 49.  Amendment of Application. - "n applicant may amend the patent application dring e4amination rovided, That sch amendment shall not inclde new matterotside the scope o' the disclosre contained in the application as 'iled. (n)

    Section 50. &rant of Patent . - %.1. &' the application meets the re0irements o' this "ct, the 7''ice shall grant the patent rovided, That all the 'ees are paid on time.

    %.2. &' the re0ired 'ees 'or grant and printing are not paid in de time, the application shall be deemed to be withdrawn.

    %.. " patent shall tae e''ect on the date o' the pblication o' the grant o' the patent in the &7 9a3ette. (Sec. 1, !.". #o. 1$%a)

    Section 71. Rights onferred by Patent . - *1.1. " patent shall con'er on its owner the 'ollowing e4clsive rights

    (a) Where the sbject matter o' a patent is a prodct, to restrain, prohibit and prevent any nathori3ed person or entity 'rom maing, sing, o''ering 'or sale,selling or importing that prodct

    (b) Where the sbject matter o' a patent is a process, to restrain, prevent or prohibit any nathori3ed person or entity 'rom sing the process, and 'romman'actring, dealing in, sing, selling or o''ering 'or sale, or importing any prodct obtained directly or indirectly 'rom sch process.

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    *1.2. atent owners shall also have the right to assign, or trans'er by sccession the patent, and to conclde licensing contracts 'or the same. (Sec. *, !.". #o. 1$%a)

    Section 103. Transmission of Rights. - 1.1. atents or applications 'or patents and invention to which they relate, shall be protected in the same way as the rights o' otherproperty nder the :ivil :ode.

    1.2. &nventions and any right, title or interest in and to patents and inventions covered thereby, may be assigned or transmitted by inheritance or be0est or may be thesbject o' a license contract. (Sec. %, !.". #o. 1$%a)

    Section 104.  Assignment of Inventions. - "n assignment may be o' the entire right, title or interest in and to the patent and the invention covered thereby, or o' an ndividedshare o' the entire patent and invention, in which event the parties become joint owners thereo'. "n assignment may be limited to a speci'ied territory. (Sec. %1, !.". #o. 1$%)

    Section 75. !"tent of Protection and Interpretation of laims. - *%.1. The e4tent o' protection con'erred by the patent shall be determined by the claims, which are to beinterpreted in the light o' the description and drawings.

    *%.2. /or the prpose o' determining the e4tent o' protection con'erred by the patent, de accont shall be taen o' elements which are e0ivalent to the elements e4pressed inthe claims, so that a claim shall be considered to cover not only all the elements as e4pressed therein, bt also e0ivalents. (n)

    Section 76. ivil Action for Infringement . - *$.1. The maing, sing, o''ering 'or sale, selling, or importing a patented prodct or a prodct obtained directly or indirectly 'rom apatented process, or the se o' a patented process withot the athori3ation o' the patentee constittes patent in'ringement.

    *$.2. "ny patentee, or anyone possessing any right, title or interest in and to the patented invention, whose rights have been in'ringed, may bring a civil action be'ore a cort o'competent jrisdiction, to recover 'rom the in'ringer sch damages sstained thereby, pls attorney;s 'ees and other e4penses o' litigation, and to secre an injnction 'or theprotection o' his rights.

    *$.. &' the damages are inade0ate or cannot be readily ascertained with reasonable certainty, the cort may award by way o' damages a sm e0ivalent to reasonable royalty.

    *$.8. The cort may, according to the circmstances o' the case, award damages in a sm above the amont 'ond as actal damages sstained rovided, That the awarddoes not e4ceed three () times the amont o' sch actal damages.

    *$.%. The cort may, in its discretion, order that the in'ringing goods, materials and implements predominantly sed in the in'ringement be disposed o' otside the channels o'commerce or destroyed, withot compensation.

    *$.$. "nyone who actively indces the in'ringement o' a patent or provides the in'ringer with a component o' a patented prodct or o' a prodct prodced becase o' a patentedprocess nowing it to be especially adopted 'or in'ringing the patented invention and not sitable 'or sbstantial non-in'ringing se shall be liable as a contribtory in'ringer andshall be jointly and severally liable with the in'ringer. (Sec. 82, !.". #o. 1$%a)

    [G.R. No. 97343. September 13, 1993.]

    PASCUAL GODINES, petitioner, vs.

     THE HONORABLE COURTOF APPEALS, SPECIAL FOURTH DIVISION and SV-AGRO

    ENTERPRISES, INC., respondents.

     Jesus S. Anonat for petitioner.

     Arturo M. Alinio for private respondent.

    SYLLABUS

    1. REMEDIAL LAW; APPEAL; APPELLATE COURT'S FINDINGS OF FACT

    CONCLUSIVE UPON SUPREME COURT. — Of general acceptance is the rule

    imbedded in our jurisprudence that ". . . the jurisdiction of the Supreme Court in

    cases brought to it from the Court of Appeals in a petition for certiorari under

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    Rule 45 of the Rules of Court is limited to the review of errors of law, and that

    said appellate court's findings of fact are conclusive upon this Court."

    2. COMMERCIAL LAW; PATENT LAW (REPUBLIC ACT NO. 165); TESTS TO

    DETERMINE INFRINGEMENT; LITERAL INFRINGEMENT TEST, EXPLAINED;

    DOCTRINE OF EQUIVALENTS, CONSTRUED; CASE AT BAR. — Tests have

    been established to determine infringement. These are (a) literal infringement;

    and (b) the doctrine of equivalents. In using literal infringement as a test, ". . .

    resort must be had, in the first instance, to the words of the claim. If accused

    matter clearly falls within the claim, infringement is made out and that is the end

    of it." To determine whether the particular item falls within the literal meaning of

    the patent claims, the Court must juxtapose the claims of the patent and the

    accused product within the overall context of the claims and specifications, to

    determine whether there is exact identity of all material elements . . . The patent

    issued by the Patent Office referred to a "farm implement but more particularly to

    a turtle hand tractor having a vacuumatic housing float on which the engine drive

    is held in place, the operating handle, the harrow housing with its operating

    handle and the paddy wheel protective covering." It appears from the observation

    of the trial court that these claims of the patent and the features of the patented

    utility model were copied by petitioner. We are compelled to arrive at no other

    conclusion but that there was infringement. . . . Recognizing that the logical

    fallback position of one in the place of defendant is to aver that his product isdifferent from the patented one, courts have adopted the doctrine of equivalents

    which recognizes that minor modifications in a patented invention are sufficient to

    put the item beyond the scope of literal infringement. Thus, according to this

    doctrine, "(a)n infringement also occurs when a device appropriates a prior

    invention by incorporating its innovative concept and, albeit with some

    modification and change, performs substantially the same function in

    substantially the same way to achieve substantially the same result." The reason

    for the doctrine of equivalents is that to permit the imitation of a patentedinvention which does not copy any literal detail would be to convert the protection

    of the patent grant into a hollow and useless thing. Such imitation would leave

    room for — indeed encourage — the unscrupulous copyist to make unimportant

    and insubstantial changes and substitutions in the patent which, though adding

    https://cdasiaonline.com/laws/2482https://cdasiaonline.com/laws/2482

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    nothing, would be enough to take the copied matter outside the claim, and hence

    outside the reach of the law.

    D E C I S I O N

    ROMERO, Jp:

    Through this petition for review on certiorari of a decision of the Court of Appeals

    affirming the decision of the trial court, petitioner Pascual Godines seeks to

    reverse the adverse decision of the Courta quo that he was liable for

    infringement of patent and unfair competition. The dispositive portion of the

    assailed decision is hereby quoted to wit:

    "WHEREFORE, with the elimination of the award for attorney's fees, the

     judgment appealed from is hereby AFFIRMED, with costs against

    appellant."1

    The patent involved in this case is Letters Patent No. UM-2236 issued by the

    Philippine Patent Office to one Magdalena S. Villaruz on July 15, 1976. It covers

    a utility model for a hand tractor or power tiller, the main components of which are

    the following: "(1) a vacuumatic house float; (2) a harrow with adjustable

    operating handle; (3) a pair of paddy wheels; (4) a protective water covering for

    the engine main drive; (5) a transmission case; (6) an operating handle; (7) an

    engine foundation on the top midportion of the vacuumatic housing float to which

    the main engine drive is detachedly installed; (8) a frontal frame extension above

    the quarter — circularly shaped water covering hold (sic) in place the

    transmission case; (9) a V-belt connection to the engine main drive with

    transmission gear through the pulley, and (10) an idler pulley installed on the

    engine foundation."2 The patented hand tractor works in the following manner:

    "the engine drives the transmission gear thru the V-belt, a driven pulley and atransmission shaft. The engine drives the transmission gear by tensioning of the

    V-belt which is controlled by the idler pulley. The V-belt drives the pulley attached

    to the transmission gear which in turn drives the shaft where the paddy wheels

    are attached. The operator handles the hand tractor through a handle which is

    https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote1_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote2_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote1_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote2_0

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    inclined upwardly and supported by a pair of substanding pipes and reinforced by

    a U-shaped G.I. pipe at the V-shaped end."3

    The above mentioned patent was acquired by SV-Agro Industries Enterprises,

    Inc., herein private respondent, from Magdalena Villaruz, its chairman and

    president, by virtue of a Deed of Assignment executed by the latter in its favor.

    On October 31, 1979, SV-Agro Industries caused the publication of the patent in

    Bulletin Today, a newspaper of general circulation.

    In accordance with the patent, private respondent manufactured and sold the

    patented power tillers with the patent imprinted on them. In 1979, SV-Agro

    Industries suffered a decline of more than 50% in sales in its Molave, Zamboanga

    del Sur branch. Upon investigation, it discovered that power tillers similar to those

    patented by private respondent were being manufactured and sold by petitioner

    herein. Consequently, private respondent notified Pascual Godines about the

    existing patent and demanded that the latter stop selling and manufacturing

    similar power tillers. Upon petitioner's failure to comply with the demand, SV-Agro

    Industries filed before the Regional Trial Court a complaint for infringement of

    patent and unfair competition.

    After trial, the court held Pascual Godines liable for infringement of patent and

    unfair competition. The dispositive portion of the decision reads as follows:

    "WHEREFORE, premises considered, JUDGMENT is hereby renderedin favor of the plaintiff SV-Agro Industries Enterprises, Inc., and against

    defendant Pascual Godines:

    1. Declaring the writ of preliminary injunction issued by this Court against

    defendant as permanent;

    2. Ordering defendant Pascual Godines to pay plaintiff the sum of Fifty

    Thousand Pesos (P50,000.00) as damages to its business reputation

    and goodwill, plus the further sum of Eighty Thousand Pesos

    (P80,000.00) for unrealized profits during the period defendant was

    manufacturing and selling copied or imitation floating power tiller;

    3. Ordering the defendant to pay the plaintiff, the further sum of Eight

    Thousand Pesos (P8,000.00) as reimbursement for attorney's fees and

    other expenses of litigation; and to pay the costs of the suit.

    SO ORDERED." 4

    https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote3_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote4_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote4_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote3_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote4_0

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    The decision was affirmed by the appellate court.

    Thereafter, this petition was filed. Petitioner maintains the defenses which he

    raised before the trial and appellate courts, to wit: that he was not engaged in the

    manufacture and sale of the power tillers as he made them only upon the special

    order of his customers who gave their own specifications; hence, he could not be

    liable for infringement of patent and unfair competition; and that those made by

    him were different from those being manufactured and sold by private

    respondent.

    We find no merit in his arguments. The question of whether petitioner was

    manufacturing and selling power tillers is a question of fact better addressed to

    the lower courts. In dismissing the first argument of petitioner herein, the Court of

    Appeals quoted the findings of the trial court, to wit:

    "It is the contention of defendant that he did not manufacture or make

    imitations or copies of plaintiff's turtle power tiller as what he merely did

    was to fabricate his floating power tiller upon specification and designs of

    those who ordered them. However, this contention appears untenable in

    the light of the following circumstances: 1) he admits in his Answer that

    he has been manufacturing power tillers or hand tractors, selling and

    distributing them long before plaintiff started selling its turtle power tiller

    in Zamboanga del Sur and Misamis Occidental, meaning that defendant

    is principally a manufacturer of power tillers, not upon specification anddesign of buyers, but upon his own specification and design; 2) it would

    be unbelievable that defendant would fabricate power tillers similar to the

    turtle power tillers of plaintiff upon specifications of buyers without

    requiring a job order where the specification and designs of those

    ordered are specified. No document was (sic) ever been presented

    showing such job orders, and it is rather unusual for defendant to

    manufacture something without the specification and designs,

    considering that he is an engineer by profession and proprietor of the

    Ozamis Engineering shop. On the other hand, it is also highly unusualfor buyers to order the fabrication of a power tiller or hand tractor and

    allow defendant to manufacture them merely based on their verbal

    instructions. This is contrary to the usual business and manufacturing

    practice. This is not only time consuming, but costly because it involves

    a trial and error method, repeat jobs and material wastage. Defendant

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     judicially admitted two (2) units of the turtle power tiller sold by him to

    Policarpio Berondo.5

    Of general acceptance is the rule imbedded in our jurisprudence that ". . . the

     jurisdiction of the Supreme Court in cases brought to it from the Court of

    Appeals in a petition for certiorari under Rule 45 of the Rules of Court is

    limited to the review of errors of law, and that said appellate court's findings of

    fact are conclusive upon this Court."6

     

    The fact that petitioner herein manufactured and sold power tillers without

    patentee's authority has been established by the courts despite petitioner's

    claims to the contrary.

    The question now arises: Did petitioner's product infringe upon the patent ofprivate respondent?

    Tests have been established to determine infringement. These are (a) literal

    infringement; and (b) the doctrine of equivalents.7 In using literal infringement as

    a test, ". . . resort must be had, in the first instance, to the words of the claim. If

    accused matter clearly falls within the claim, infringement is made out and that is

    the end of it."8To determine whether the particular item falls within the literal

    meaning of the patent claims, the Court must juxtapose the claims of the patent

    and the accused product within the overall context of the claims andspecifications, to determine whether there is exact identity of all material

    elements.9

    The trial court made the following observation:

    "Samples of the defendant's floating power tiller have been produced

    and inspected by the court and compared with that of the turtle power

    tiller of the plaintiff (see Exhibits H to H-28). In appearance and form,

    both the floating power tillers of the defendant and the turtle power tiller

    of the plaintiff are virtually the same. Defendant admitted to the Courtthat two (2) of the power tillers inspected on March 12, 1984, were

    manufactured and sold by him (see TSN, March 12, 1984, p. 7). The

    three power tillers were placed alongside with each other. At the center

    was the turtle power tiller of plaintiff, and on both sides thereof were the

    floating power tillers of defendant (Exhibits H to H-2). Witness Rodrigo

    took photographs of the same power tillers (front, side, top and back

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    views for purposes of comparison (see Exhibits H-4 to H-28). Viewed

    from any perspective or angle, the power tiller of the defendant is

    identical and similar to that of the turtle power tiller of plaintiff in form,

    configuration, design and appearance. The parts or components thereof

    are virtually the same. Both have the circularly-shaped vacuumatichousing float, a pair of paddy in front, a protective water covering, a

    transmission box housing the transmission gears, a handle which is V-

    shaped and inclined upwardly, attached to the side of the vacuumatic

    housing float and supported by the upstanding G.I. pipes and an engine

    base at the top midportion of the vacuumatic housing float to which the

    engine drive may be attached. In operation, the floating power tiller of the

    defendant operates also in similar manner as the turtle power tiller of

    plaintiff. This was admitted by the defendant himself in court that they

    are operating on the same principles. (TSN, August 19, 1987, p. 13)10

    Moreover, it also observed that petitioner also called his power tiller as a

    floating power tiller. The patent issued by the Patent Office referred to a "farm

    implement but more particularly to a turtle hand tractor having a vacuumatic

    housing float on which the engine drive is held in place, the operating handle,

    the harrow housing with its operating handle and the paddy wheel protective

    covering."11 It appears from the foregoing observation of the trial court that

    these claims of the patent and the features of the patented utility model were

    copied by petitioner. We are compelled to arrive at no other conclusion butthat there was infringement.

    Petitioner's argument that his power tillers were different from private

    respondent's is that of a drowning man clutching at straws.

    Recognizing that the logical fallback position of one in the place of defendant is to

    aver that his product is different from the patented one, courts have adopted the

    doctrine of equivalents which recognizes that minor modifications in a patented

    invention are sufficient to put the item beyond the scope of literal

    infringement.12Thus, according to this doctrine, "(a)n infringement also occurs

    when a device appropriates a prior invention by incorporating its innovative

    concept and, albeit with some modification and change, performs substantially

    the same function in substantially the same way to achieve substantially the

    same result."13 The reason for the doctrine of equivalents is that to permit the

    imitation of a patented invention which does not copy any literal detail would be to

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    convert the protection of the patent grant into a hollow and useless thing. Such

    imitation would leave room for — indeed encourage — the unscrupulous copyist

    to make unimportant and insubstantial changes and substitutions in the patent

    which, though adding nothing, would be enough to take the copied matter outside

    the claim, and hence outside the reach of the law.14

    In this case, the trial court observed:

    "Defendant's witness Eduardo Cañete, employed for 11 years as welder

    of the Ozamiz Engineering, and therefore actually involved in the making

    of the floating power tillers of defendant tried to explain the difference

    between the floating power tillers made by the plaintiff and the power

    tillers made by the defendant. But a careful examination between the two

    power tillers will show that they will operate on the same fundamental

    principles. And, according to establish jurisprudence, in infringement ofpatent, similarities or differences are to be determined, not by the names

    of things, but in the light of what elements do, and substantial, rather

    than technical, identity in the test. More specifically, it is necessary and

    sufficient to constitute equivalency that the same function can be

    performed in substantially the same way or manner, or by the same or

    substantially the same, principle or mode of operation; but where these

    tests are satisfied, mere differences of form or name are

    immaterial . . ."15

    It also stated:

    "To establish an infringement, it is not essential to show that the

    defendant adopted the device or process in every particular; Proof of an

    adoption of the substance of the thing will be sufficient. 'In one sense,'

    said Justice Brown, 'it may be said that no device can be adjudged an

    infringement that does not substantially correspond with the patent. But

    another construction, which would limit these words to exact mechanism

    described in the patent, would be so obviously unjust that no court be

    expected to adopt it. . . .'The law will protect a patentee against imitation of his patent by other

    forms and proportions. If two devices do the same work in substantially

    the same way, and accomplish substantially the same result, they are the

    same, even though they differ in name, form, or shape."16

    https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote14_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote15_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote16_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote14_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote15_0https://cdasiaonline.com/jurisprudences/16507?hits%5B%5D%5Bid%5D=16507&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=97343&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote16_0

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    We pronounce petitioner liable for infringement in accordance with Section 37

    ofRepublic Act No. 165, as amended, providing,inter alia:

    "Section 37.Right of Patentees. — A patentee shall have the exclusive

    right to make, use and sell the patented machine, article or product, and

    to use the patented process for the purpose of industry or commerce,

    throughout the territory of the Philippines for the terms of the patent;and

    such making, using, or selling by any person without the authorization of

    the patentee constitutes infringement of the patent." (Italics ours).

    As far as the issue regarding unfair competition is concerned, suffice it to say

    thatRepublic Act No. 166, as amended, provides,inter alia:

    "Sec. 29. Unfair competition, rights and remedies. — . . .

    xxx xxx xxx

    In particular, and without in any way limiting the scope of unfair

    competition, the following shall be deemed guilty of unfair competition:

    (a) Any person, who in selling his goods shall give them the general

    appearance of goods of another manufacturer or dealer, either as to the

    goods themselves or in the wrapping of the packages in which they are

    contained, or the devices or words thereon, or in any other feature of

    their appearance, which would be likely to influence purchasers that the

    goods offered are those of a manufacturer or dealer other than the actual

    manufacturer or dealer, or who otherwise clothes the goods with suchappearance as shall deceive the public and defraud another of his

    legitimate trade . . .

    xxx xxx xxx"

    Considering the foregoing, we find no reversible error in the decision of the Court

    of Appeals affirming with modification the decision of the trial court.

    WHEREFORE, premises considered, the decision of the Court of Appeals is

    hereby AFFIRMED and this petition DENIED for lack of merit.

    Bidin, Melo andVitug, JJ.,concur.

    Feliciano,is on leave.

    ||| (Godines v. Court of Appeals, G.R. No. 97343, [September 13, 1993])

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    [G.R. No. 126627. August 14, 2003.]

    SMITH KLINE BECKMAN CORPORATION, petitioner,vs. THE

    HONORABLE COURT OF APPEALS and TRYCO PHARMA

    CORPORATION, respondents.

    Sapalo and Velezfor petitioner.

    Eduardo J Marino, Jr.for respondents.

    SYNOPSIS

    Petitioner, the registered patent holder of Letters Patent No. 14561, filed acomplaint for infringement of patent against private respondent alleging that

    private respondent appropriated for its drug Impregon, the active ingredient of

    Albendazole, which is substantially the same as Methyl 5 Propylthio-2-

    Benzimidazole Carbamate covered by petitioner's patent since both of them are

    meant to combat worm or parasite infestation in animals. Petitioner also pointed

    out that its application for a patent in the Philippine Patent Office on account of

    which it was granted Letters Patent No. 14561 was merely a divisional application

    of a prior application in the U.S. which granted a patent for Albendazole. Both the

    trial court and the CA held that the respondent was not liable for any infringement

    of the patent of petitioner in light of the latter's failure to show that Albendazole is

    the same as the compound subject of Letters Patent No. 14561.

    The Supreme Court affirmed the assailed decision with modification. The Court

    held that petitioner's evidence failed to show the substantial sameness of

    petitioner's patented compound and Albendazole. While both compounds have

    the effect of neutralizing parasites in animals, the identity of result does not

    amount to infringement of patent unless Albendazole operates in substantially the

    same way as the patented compound, even though it performs the same function

    or the same result. As for the concept of divisional applications proffered by

    petitioner, what this only means is that petitioner's Methyl 5 Prophylthio-2-

    Benzimidazole Carbamate is an invention distinct from the other inventions

    claimed in the original application divided out, Albendazole being one of those

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    other inventions. Otherwise, Methyl 5 Propylthio-2-Benzimidazole Carbamate

    would not have been the subject of a divisional application if a single patent could

    have been issued for it as well as Albendazole. The Supreme Court did not

    award actual damages because no documentary evidence was presented to

    substantiate private respondent's claim therefore. Neither did the Court award

    attorney's fees because there was no evidence indicating that petitioner was

    moved by malice in suing private respondent. The Court, however, awarded

    private respondent P20,000.00 temperate or moderate damages, it having

    suffered some pecuniary loss the amount of which cannot, by the nature of the

    case, be established with certainty.

    SYLLABUS

    1. COMMERCIAL LAW; PATENT LAW; INFRINGEMENT; DOCTRINE OF

    EQUIVALENTS; TAKES PLACE WHEN A DEVICE APPROPRIATES A PRIOR

    INVENTION BY DOING SUBSTANTIALLY THE SAME FUNCTION IN

    SUBSTANTIALLY THE SAME WAY; CASE AT BAR NOT A CASE OF. —

    Thedoctrine of equivalentsprovides that an infringement also takes place when

    a device appropriates a prior invention by incorporating its innovative concept

    and, although with some modification and change, performs substantially the

    same function in substantially the same way to achieve substantially the sameresult. Yet again, a scrutiny of petitioner's evidence fails to convince this Court of

    the substantial sameness of petitioner's patented compound and Albendazole.

    While both compounds have the effect of neutralizing parasites in

    animals,identity of result does not amount to infringement of patent unless

     Albendazole operates in substantially the same way or by substantially the same

    means as the patented compound, even though it performs the same function

    and achieves the same result. In other words,the principle or mode of operation

    must be the same or substantially the same. Thedoctrine of equivalents thusrequires satisfaction of the function-means-and-result test, the patentee having

    the burden to show that all three components of such equivalency test are met.

    As stated early on, petitioner's evidence fails to explain how Albendazole is in

    every essential detail identical to methyl 5 propylthio-2-benzimidazole carbamate.

    Apart from the fact that Albendazole is an anthelmintic agent like methyl 5

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    propylthio-2-benzimidazole carbamate, nothing more is asserted and accordingly

    substantiated regarding the method or means by which Albendazole weeds out

    parasites in animals, thus giving no information on whether that method is

    substantially the same as the manner by which petitioner's compound works. The

    testimony of Dr. Orinion lends no support to petitioner's cause, he not having

    been presented or qualified as an expert witness who has the knowledge or

    expertise on the matter of chemical compounds.

    2. ID.; ID.; ID.; CONCEPT OF DIVISIONAL APPLICATIONS, EXPLAINED; CASE

    AT BAR. — As for the concept of divisional applications proffered by petitioner, it

    comes into play when two or more inventions are claimed in a single application

    but are of such a nature that a single patent may not be issued for them. The

    applicant thus is required "to divide," that is, to limit the claims to whichever

    invention he may elect, whereas those inventions not elected may be made the

    subject of separate applications which are called "divisional applications." What

    this only means is that petitioner's methyl 5 propylthio-2-benzimidazole

    Carbamate is an invention distinct from the other inventions claimed in the

    original application divided out, Albendazole being one of those other inventions.

    Otherwise, methyl 5 propylthio-2-benzimidazole carbamate would not have been

    the subject of a divisional application if a single patent could have been issued for

    it as well as Albendazole.

    3. CIVIL LAW; CIVIL CODE; DAMAGES; ACTUAL DAMAGES, ATTORNEY'S

    FEES, TEMPERATE DAMAGES; AWARD THEREOF, WHEN PROPER; CASE

    AT BAR. — This Court does not sustain the award of actual damages and

    attorney's fees in favor of private respondent. The claimed actual damages of

    P330,000.00 representing lost profits or revenues incurred by private respondent

    as a result of the issuance of the injunction against it, computed at the rate of

    30% of its alleged P100,000.00 monthly gross sales for eleven months, were

    supported by the testimonies of private respondent's President and Executive

    Vice-President that the average monthly sale of Impregon was P100,000.00 andthat sales plummeted to zero after the issuance of the injunction. While

    indemnification for actual or compensatory damages covers not only the loss

    suffered (damnum emergens) but also profits which the obligee failed to obtain

    (lucrum cessans or ganacias frustradas), it is necessary to prove the actual

    amount of damages with a reasonable degree of certainty based on competent

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    proof and on the best evidence obtainable by the injured party. The testimonies

    of private respondent's officers are not the competent proof or best evidence

    obtainable to establish its right to actual or compensatory damages for such

    damages also require presentation of documentary evidence to substantiate a

    claim therefor. In the same vein, this Court does not sustain the grant by the

    appellate court of attorney's fees to private respondent anchored on Article 2208

    (2) of the Civil Code, private respondent having been allegedly forced to litigate

    as a result of petitioner's suit. Even if a claimant is compelled to litigate with third

    persons or to incur expenses to protect its rights, still attorney's fees may not be

    awarded where no sufficient showing of bad faith could be reflected in a party's

    persistence in a case other than an erroneous conviction of the righteousness of

    his cause. There exists no evidence on record indicating that petitioner was

    moved by malice in suing private respondent. This Court, however, grants privaterespondent temperate or moderate damages in the amount of P20,000.00 which

    it finds reasonable under the circumstances, it having suffered some pecuniary

    loss the amount of which cannot, from the nature of the case, be established with

    certainty.

    D E C I S I O N

    CARPIO MORALES, Jp:

    Smith Kline Beckman Corporation (petitioner), a corporation existing by virtue of

    the laws of the state of Pennsylvania, United States of America (U.S.) and

    licensed to do business in the Philippines, filed on October 8, 1976, as assignee,

    before the Philippine Patent Office (now Bureau of Patents, Trademarks and

    Technology Transfer) an application for patent over an invention entitled "Methods

    and Compositions for Producing Biphasic Parasiticide Activity Using Methyl 5Propylthio-2-Benzimidazole Carbamate." The application bore Serial No. 18989.

    On September 24, 1981, Letters Patent No. 145611 for the aforesaid invention

    was issued to petitioner for a term of seventeen (17) years.

    The letters patent provides in its claims2 that the patented invention consisted of a

    new compound named methyl 5 propylthio-2-benzimidazole carbamate and the

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    methods or compositions utilizing the compound as an active ingredient in

    fighting infections caused by gastrointestinal parasites and lungworms in animals

    such as swine, sheep, cattle, goats, horses, and even pet animals.

    Tryco Pharma Corporation (private respondent) is a domestic corporation that

    manufactures, distributes and sells veterinary products including Impregon, a

    drug that has Albendazole for its active ingredient and is claimed to be effective

    against gastro-intestinal roundworms, lungworms, tapeworms and fluke

    infestation in carabaos, cattle and goats.

    Petitioner sued private respondent for infringement of patent and unfair

    competition before the Caloocan City Regional Trial Court (RTC).3 It claimed that

    its patent covers or includes the substance Albendazole such that private

    respondent, by manufacturing, selling, using, and causing to be sold and used

    the drug Impregon without its authorization, infringed Claims 2, 3, 4, 7, 8 and 9 of

    Letters Patent No. 145614 as well as committed unfair competition under Article

    189, paragraph 1 of the Revised Penal Code and Section 29 ofRepublic Act No.

    166 (The Trademark Law) for advertising and selling as its own the drug

    Impregon although the same contained petitioner's patented Albendazole.5

     

    On motion of petitioner, Branch 125 of the Caloocan RTC issued a temporary

    restraining order against private respondent enjoining it from committing acts ofpatent infringement and unfair competition.6 A writ of preliminary injunction was

    subsequently issued.7

    Private respondent in its Answer8 averred that Letters Patent No. 14561 does not

    cover the substance Albendazole for nowhere in it does that word appear; that

    even if the patent were to include Albendazole, such substance is unpatentable;

    that the Bureau of Food and Drugs allowed it to manufacture and market

    Impregon with Albendazole as its known ingredient; that there is no proof that it

    passed off in any way its veterinary products as those of petitioner; that LettersPatent No. 14561 is null and void, the application for the issuance thereof having

    been filed beyond the one year period from the filing of an application abroad for

    the same invention covered thereby, in violation of Section 15 ofRepublic Act No.

    165 (The Patent Law); and that petitioner is not the registered patent holder.

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    Private respondent lodged a Counterclaim against petitioner for such amount of

    actual damages as may be proven; P1,000,000.00 in moral damages;

    P300,000.00 in exemplary damages; and P150,000.00 in attorney's fees.DaTICE

    Finding for private respondent, the trial court rendered a Decision dated July 23,

    1991,9 the dispositive portion of which reads:

    WHEREFORE, in view of the foregoing, plaintiff'scomplaint should be,

    as it is hereby, DISMISSED. The Writ of injunction issued in connection

    with the case is hereby ordered DISSOLVED.

    The Letters Patent No. 14561 issued by the then Philippine Patents

    Office is hereby declared null and void for being in violation of Sections

    7, 9 and 15 of the Patents Law.

    Pursuant to Sec. 46 of the Patents Law, the Director of Bureau of

    Patents is hereby directed tocancel Letters Patent No. 14561 issued to

    the plaintiff and to publish such cancellation in the Official Gazette.

    DefendantTryco Pharmaceutical Corporation is hereby awarded

    P330,000.00 actual damages and P100,000.00 attorney's fees as

     prayed for in its counterclaim but said amount awarded to defendant is

    subject to the lien on correct payment of filing fees.

    SO ORDERED. (Italics supplied)

    On appeal, the Court of Appeals, by Decision of April 21, 1995,10 upheld the trial

    court's finding that private respondent was not liable for any infringement of the

    patent of petitioner in light of the latter's failure to show that Albendazole is the

    same as the compound subject of Letters Patent No. 14561. Noting petitioner's

    admission of the issuance by the U.S. of a patent for Albendazole in the name of

    Smith Kline and French Laboratories which was petitioner's former corporate

    name, the appellate court considered the U.S. patent as implying that

    Albendazole is different from methyl 5 propylthio-2-benzimidazole carbamate. It

    likewise found that private respondent was not guilty of deceiving the public by

    misrepresenting that Impregon is its product.

    The appellate court, however, declared that Letters Patent No. 14561 was not

    void as it sustained petitioner's explanation that Patent Application Serial No.

    18989 which was filed on October 8, 1976 was a divisional application of Patent

    Application Serial No. 17280 filed on June 17, 1975 with the Philippine Patent

    Office, well within one year from petitioner's filing on June 19, 1974 of its Foreign

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    Application Priority Data No. 480,646 in the U.S. covering the same compound

    subject of Patent Application Serial No. 17280.

    Applying Section 17 of the Patent Law, the Court of Appeals thus ruled that

    Patent Application Serial No. 18989 was deemed filed on June 17, 1995 or still

    within one year from the filing of a patent application abroad in compliance with

    the one-year rule under Section 15 of the Patent Law. And it rejected the

    submission that the compound in Letters Patent No. 14561 was not patentable,

    citing the jurisprudentially established presumption that the Patent Office's

    determination of patentability is correct. Finally, it ruled that petitioner established

    itself to be the one and the same assignee of the patent notwithstanding changes

    in its corporate name. Thus the appellate court disposed:

    WHEREFORE, the judgment appealed from is AFFIRMEDwith

    the MODIFICATION that the orders for the nullification of Letters Patent

    No. 14561 and for its cancellation are deleted therefrom.

    SO ORDERED.

    Petitioner's motion for reconsideration of the Court of Appeals' decision having

    been denied11 the present petition for review oncertiorari 12 was filed, assigning

    as errors the following:

    I. THE COURT OF APPEALS GRAVELY ERRED IN NOT FINDING

    THAT ALBENDAZOLE, THE ACTIVE INGREDIENT INTRYCO'S "IMPREGON" DRUG, IS INCLUDED IN

    PETITIONER'S LETTERS PATENT NO. 14561, AND THAT

    CONSEQUENTLY TRYCO IS ANSWERABLE FOR PATENT

    INFRINGEMENT.

    II. THE COURT OF APPEALS GRAVELY ERRED IN AWARDING

    TO PRIVATE RESPONDENT TRYCO PHARMA

    CORPORATION P330,000.00 ACTUAL DAMAGES AND

    P100,000.00 ATTORNEY'S FEES.Petitioner argues that under thedoctrine of equivalents for determining patent

    infringement, Albendazole, the active ingredient it alleges was appropriated by

    private respondent for its drug Impregon, is substantially the same as methyl 5

    propylthio-2-benzimidazole carbamate covered by its patent since both of them

    are meant to combat worm or parasite infestation in animals. It cites the

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    "unrebutted" testimony of its witness Dr. Godofredo C. Orinion (Dr. Orinion) that

    the chemical formula in Letters Patent No. 14561 refers to the compound

    Albendazole. Petitioner adds that the two substances substantially do the same

    function in substantially the same way to achieve the same results, thereby

    making them truly identical. Petitioner thus submits that the appellate court

    should have gone beyond the literal wordings used in Letters Patent No. 14561,

    beyond merely applying the literal infringement test, for in spite of the fact that the

    word Albendazole does not appear in petitioner's letters patent, it has ably shown

    by evidence its sameness with methyl 5 propylthio-2-benzimidazole carbamate.

    Petitioner likewise points out that its application with the Philippine Patent Office

    on account of which it was granted Letters Patent No. 14561 was merely a

    divisional application of a prior application in the U.S. which granted a patent for

    Albendazole. Hence, petitioner concludes that both methyl 5 propylthio-2-

    benzimidazole carbamate and the U.S.-patented Albendazole are dependent on

    each other and mutually contribute to produce a single result, thereby making

    Albendazole as much a part of Letters Patent No. 14561 as the other substance

    is.

    Petitioner concedes in its Sur-Rejoinder13 that although methyl 5 propylthio-2-

    benzimidazole carbamate is not identical with Albendazole, the former is an

    improvement or improved version of the latter thereby making both substances

    still substantially the same.

    With respect to the award of actual damages in favor of private respondent in the

    amount of P330,000.00 representing lost profits, petitioner assails the same as

    highly, speculative and conjectural, hence, without basis. It assails too the award

    of P100,000.00 in attorney's fees as not falling under any of the instances

    enumerated by law where recovery of attorney's fees is allowed.ECcDAH

    In its Comment,14 private respondent contends that application of thedoctrine of

    equivalents would not alter the outcome of the case, Albendazole and methyl 5

    propylthio-2-benzimidazole carbamate being two different compounds with

    different chemical and physical properties. It stresses that the existence of a

    separate U.S. patent for Albendazole indicates that the same and the compound

    in Letters Patent No. 14561 are different from each other; and that since it was on

    account of a divisional application that the patent for methyl 5 propylthio-2-

    https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote13_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote14_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote13_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote14_0

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    benzimidazole carbamate was issued, then, by definition of a divisional

    application, such a compound is just one of several independent inventions

    alongside Albendazole under petitioner's original patent application.

    As has repeatedly been held, only questions of law may be raised in a petition for

    review oncertiorari before this Court. Unless the factual findings of the appellate

    court are mistaken, absurd, speculative, conjectural, conflicting, tainted with

    grave abuse of discretion, or contrary to the findings culled by the court of

    origin,15 this Court does not review them.

    From an examination of the evidence on record, this Court finds nothing infirm in

    the appellate court's conclusions with respect to the principal issue of whether

    private respondent committed patent infringement to the prejudice of petitioner.

    The burden of proof to substantiate a charge for patent infringement rests on theplaintiff.16 In the case at bar, petitioner's evidence consists primarily of its Letters

    Patent No. 14561, and the testimony of Dr. Orinion, its general manager in the

    Philippines for its Animal Health Products Division, by which it sought to show

    that its patent for the compound methyl 5 propylthio-2-benzimidazole carbamate

    also covers the substance Albendazole.

    From a reading of the 9 claims of Letters Patent No. 14561 in relation to the other

    portions thereof, no mention is made of the compound Albendazole. All that the

    claims disclose are: the covered invention, that is, the compound methyl 5propylthio-2-benzimidazole carbamate; the compound's being anthelmintic but

    nontoxic for animals or its ability to destroy parasites without harming the host

    animals; and the patented methods, compositions or preparations involving the

    compound to maximize its efficacy against certain kinds of parasites infecting

    specified animals.

    When the language of its claims is clear and distinct, the patentee is bound

    thereby and may not claim anything beyond them.17 And so are the courts bound

    which may not add to or detract from the claims matters not expressed ornecessarily implied, nor may they enlarge the patent beyond the scope of that

    which the inventor claimed and the patent office allowed, even if the patentee

    may have been entitled to something more than the words it had chosen would

    include.18

     

    https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote15_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote16_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote16_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote17_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote17_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote18_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote15_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote16_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote17_0https://cdasiaonline.com/jurisprudences/7818?hits%5B%5D%5Bid%5D=7818&hits%5B%5D%5Btype%5D=Jurisprudence&path=%2Fjurisprudences%2Fsearch&q%5Bcitation_finder%5D=&q%5Bfull_text%5D=&q%5Bissue_no%5D=126627&q%5Bponente%5D=&q%5Bsyllabus%5D=&q%5Btitle%5D=&q%5Butf8%5D=%E2%9C%93&q%5Byear_end%5D=&q%5Byear_start%5D=#footnote18_0

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    It bears stressing that the mere absence of the word Albendazole in Letters

    Patent No. 14561 is not determinative of Albendazole's non-inclusion in the

    claims of the patent. While Albendazole is admittedly a chemical compound that

    exists by a name different from that covered in petitioner's letters patent, the

    language of Letter Patent No. 14561 fails to yield anything at all regarding

    Albendazole. And no extrinsic evidence had been adduced to prove that

    Albendazole inheres in petitioner's patent in spite of its omission therefrom or that

    the meaning of the claims of the patent embraces the same.

    While petitioner concedes that the mere literal wordings of its patent cannot

    establish private respondent's infringement, it urges this Court to apply

    thedoctrine of equivalents.

    Thedoctrine of equivalents provides that an infringement also takes place when

    a device appropriates a prior invention by incorporating its innovative concept

    and, although with some modification and change, performs substantially the

    same function in substantially the same way to achieve substantially the same

    result.19 Yet again, a scrutiny of petitioner's evidence fails to convince this Court of

    the substantial sameness of petitioner's patented compound and Albendazole.

    While both compounds have the effect of neutralizing parasites in

    animals,identity of result does not amount to infringement of patent unless

     Albendazole operates in substantially the same way or by substantially the same

    means as the patented compound, even though it performs the same function

    and achieves the same result.20In other words,the principle or mode of operation

    must be the same or substantially the same.21

    Thedoctrine of equivalents thus requires satisfaction of the function-means-and-

    result test, the patentee having the burden to show that all three components of

    such equivalency test are met.22

    As stated early on, petitioner's evidence fails to explain how Albendazole is in

    every essential detail identical to methyl 5 propylthio-2-benzimidazole carbamate.

    Apart from the fact that Albendazole is an anthelmintic agent like methyl 5

    propylthio-2-benzimidazole carbamate, nothing more is asserted and accordingly

    substantiated regarding the method or means by which Albendazole weeds out

    parasites in animals, thus giving no information on whether that method is

    substantially the same as the manner by which petitioner's compound works. The

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