Why the Defense of Comparative Advertising against
Trademark Infringement Must Be Reviewed
Trademark is defined as any word, name symbol, emblem, sign or device or any combination thereof adopted and used by a manufacturer or merchant to identify his goods and distinguish them from those manufactured, sold or dealt in by others. It is any visible sign capable of distinguishing goods. 1 The function of a trademark is to point out distinctly the origin or ownership of the goods to which it is affixed; to secure to him, who has been instrumental in bringing into the market a superior article of merchandise, the fruit of his industry and skill; to assure the public that they are procuring the genuine article to prevent fraud and imposition, and to protect the manufacturer against substitution and sale of an inferior different article as his product.2 In Smith v. Chanel (402 F.2d 562, 1968), a manufacturer who advertised a fragrance called TaRons Second Chance as duplicate of Chanel No. 5 successfully used the defense of comparative advertising against charges of trademark infringement and unfair competition. The Court held that the use of anothers mark to identify the trademark owners product in comparative advertising is not prohibited by either statutory or common law, absent misrepresentation regarding the products or confusion as to the source. The only legal relevance of a trademark is to impart information as to the source or sponsorship of the product for reasons grounded in the public policy favoring a free, competitive economy. Thus, absent any misrepresentation or confusion as to source of sponsorship, a seller in promoting his own goods may use the mark of another to identify the latters goods. It is true that the perfume copied was unpatented and thus Smith has the right to copy it. However, he should not be permitted to advertise that his perfume is a 100% perfect duplicate of Chanel No. 5. It is my humble opinion that a comparative advertising defense is incompatible with the functions of a trademark as laid down in jurisprudence. As mentioned above, a trademark secures the producer of the goods, who has been instrumental in bringing into market a superior article of merchandise, the fruit of his industry and skill. It also protects the manufacturer against substitution and sale of an inferior different article as his product. If Smith would be allowed to advertise that his perfumes are perfect duplicates of Chanel No. 5 and other worlds finest and expensive perfumes, Smith is indirectly using these brand names, profiting from their goodwill, as baits to attract customers. The Court favors Smith by holding that his chief weapon is his ability to represent his product as being equivalent and cheaper. However, the advertisement clearly conveys that his perfumes are not merely equivalent but perfect duplicates of the branded perfumes. Clearly, this confirms that Smith is taking a free ride on trademark owners widespread goodwill and reputation. As alternative, Smith should be ordered to advertise his product not as perfect duplicates but as being better or simply being an equivalent of Chanels. In this way, there would be a doubt in the mind of the potential customers as to the reliability and truthfulness of the advertisement creating a protection to the registered trademarks. Therefore, I propose that the comparative advertising defense should be 1 Mirpuri v. CA, G.R. No. 114508, November 19, 1999. 2 Ibid.
reviewed because there is a question as to its consistency with the essence of having trademark as protection.