Professional Documents
Culture Documents
II
In said decision respondent court stated that in disposing of THAT THIS HONORABLE COURT ERRED
the petition it tackled only the issue of whether the court a quo IN NOT REJECTING THE
acted with grave abuse of discretion in issuing the challenged THEORY OF RESPONDENT
orders. It made clear the question of whether the patents JUDGE THAT HE HAS NO
have been infringed or not was not determined considering JURISDICTION TO
the court a quo has yet to decide the case on the merits (Ibid., INVALIDATE THE PATENTS
p. 186). UPON GROUND OF LACK OF
Feeling aggrieved, private respondent moved to reconsider NOVELTY OF THE
the afore-mentioned Decision based on the following PRODUCTS PATENTED.
grounds: (Motion for Reconsideration,
I Rollo, p. 190).
6. ID.; ID.; ID.; ID.; PUBLIC USE OR Angel Vargas, a farmer acquainted with
SALE. — To entitle patent, the invention must be local conditions and alive to the commercial
new to the world. possibilities, took it upon himself to produce, with
the native plow as the model, an improved,
7. ID.; ID.; ID.; ID.; ID. — Under the adjustable plow. On July 22, 1910, he made
provisions of the statute, an inventor's creation application for a United States patent to cover his
must not have been in public use or on sale in the so-called invention. On March 12, 1912, letters
United States and the Philippine Islands for more patent were issued by the United States Patent
than two years prior to his application. Office in favor of Vargas. On April 24, 1912, a
certified copy of the patent was filed in the
Division of Patents, Copyrights, and Trademarks
of the Executive Bureau, Government of the plow, and that the plow, whose manufacture it
Philippine Islands. The patent and its registry was was sought to have enjoined by the plaintiff, had
also published in the newspaper, El Tiempo. already been in public use for more than two
years before the application of the plaintiff for his
Since 1910, Vargas has engaged in the patent. The parties subsequently entered into a
manufacture of these plows in the city of Iloilo, stipulation that the court should first resolve the
Philippine Islands. On the plows there was first question of whether or not there had been an
stamped the words "Patent Applied For," later infraction of the patent, reserving the resultant
after the patent had been granted, changed to question of damages for later decision. After the
"Patented Mar. 12, 1912." Ninety per cent of the taking of evidence, including the presentation of
plows in use in the Visayas (Iloilo and vicinity) are exhibits, the trial judge, the Honorable Antonio
said to be Vargas plows. Villareal, in a very exhaustive and learned
decision, rendered judgment in favor of the
During this same period, the firm of F. defendant and against the plaintiff, declaring null
M. Yaptico & Co. (Ltd.), was engaged in the and without effect the patent in question and
foundry business in the City of Iloilo. It openly dismissing the suit with costs against the plaintiff.
held itself out as a manufacturer of plow parts. It The preliminary injunction theretofore issued was
has in fact produced points, shares, shoes, and dissolved.
heel pieces in a considerable amount adapted to
replace worn-out parts of the Vargas plow. From this judgment the plaintiff has
appealed, specifying five errors. The principal
Such was the existing situation when, in assignment No. 1 is, that the trial court erred in
the early part of 1918, the owner of the patent, finding that the patented invention of the plaintiff
and thus the proper party to institute judicial is lacking in novelty and invention. Defendant, in
proceedings, began action in the Court of First reply, relies on three propositions, namely: (1)
Instance of Iloilo to enjoin the alleged The judgment of the trial court in finding the
infringement of U. S. Patent No. 1020232 by the patent granted plaintiff void for lack of novelty and
defendant F. M Yaptico & Co. (Ltd.), and to invention should be affirmed; (2) The patent
recover the damages suffered by reason of this granted plaintiff is void from the public use of his
infringement. The court issued the preliminary plow for over two years prior to his application for
injunction as prayed for. The defendant, in a patent, and (3) If the patent is valid, there has
addition to a general denial, alleged, as special been no contributory infringement by defendant.
defenses, that the patent lacked novelty or
invention, that there was no priority of ideas or Before resolving these rival
device in the principle and construction of the contentions, we should have before us the
relevant law. Act No. 2235 of the Philippine abandoned, may, upon payment
Legislature, enacted on February 10, 1913, in of the fees required by law, and
effect makes the United States Patent Laws other due proceeding had,
applicable in the Philippine Islands. It provides obtain a patent therefor." (29
that "owners of patents, including design patents, Stat. L., 692, 7 Fed. Stat. Ann.
which have been issued or may hereafter be [2d Ed.], p. 23.)
issued, duly registered in the United States
Patent Office under the laws of the United States
relating to the grant of patents, shall receive in the
Philippine Islands the protection accorded them
in the United States under said laws." (Sec. 1.) When a patent is sought to be enforced,
Turning to the United States Patent Laws, we find "the questions of invention, novelty, or prior use,
the Act of Congress of March 3, 1897, and each of them, are open to judicial
amendatory of section 4886 of the United States examination." The burden of proof to substantiate
Revised Statutes, reading as follows: a charge of infringement is with the plaintiff.
Where, however, the plaintiff introduces the
"Any person who has patent in evidence, if it is in due form, it affords a
invented or discovered any new prima facie presumption of its correctness and
and useful art, machine, validity. The decision of the Commissioner of
manufacture, or composition of Patents in granting the patent is always
matter, or any new and useful presumed to be correct. The burden then shifts to
improvements thereof, not the defendant to overcome by competent
known or used by others in this evidence this legal presumption. With all due
country. before his invention or respect, therefore, for the critical and expert
discovery thereof, and not examination of the invention by the United States
patented or described in any Patent Office, the question of the validity of the
printed publication in this or any patent is one for judicial determination, and since
foreign country, before his a patent has been submitted, the exact question
invention or discovery thereof, or is whether the defendant has assumed the
more than two years prior to his burden of proof as to anyone of his defenses.
application, and not in public use (See Agawan Co. vs. Jordan [1869], 7 Wall., 583;
are on sale in this country for Blanchard vs. Putnam [186g], 8 Wall., 420;
more than two years prior to his Seymour vs. Osborne [1871], 11 Wall., 516;
application, unless the same is Reckendorfer vs. Faber [1876], 92 U. S., 347; 20
proved to have been R. C. L., 1112, 1168, 1169.)
As hereinbefore stated, the defendant A second line of defense relates to the
relies on three special defenses. One such fact that defendant has never made a complete
defense, on which the judgment of the lower court Vargas plow, but only points, shares, shoes, and
is principally grounded, and to which appellant heel pieces to serve as repairs. Defendant's
devotes the major portion of his vigorous contention is that in common with other
argument, concerns the element of novelty, foundaries, he has for four years cast large
invention, or discovery, that gives existence to numbers of plow points and shares suitable for
the right to a patent. On this point the trial court the use of either on the native wooden plow or on
reached the conclusion that "the patented plow of the Vargas plow. A differences has long been
the plaintiff, Exhibit D, is not different from the recognized between repairing and constructing a
native plow, Exhibit 2, except in the material, in machine. If, for instance, partial injuries, whether
the form, in the weight and the grade of the result, they occur from accident or from wear and tear,
the said differences giving it neither a new to a machine for agricultural purposes are made
function nor a new result distinct from the function this is only re-fitting the machine for use, and thus
and the result obtained from the native plow; permissible. (Wilson vs. Simpson [1850], 9 How.,
consequently, its production does not 109.) Even under the more rigorous doctrine of
presuppose the exercise of the inventive faculty Leeds & Catlin Co. vs. Victor Talking Machine
but merely of mechanical skill, which does not Co. ([1909], 213 U. S. 325), it may be possible
give a right to a patent of an invention under the that all the defendants has done is to
provisions of the Patent Law." In thus finding, the manufacture and sell isolated parts to be used to
court may have been right, since the Vargas plow replace worn-out parts.
does not appear to be such a ":combination" as
contains a novel assemblage of parts exhibiting The third defense is, that under the
invention. (See Stimpson vs. Woodman [1870], provisions of the statute, an inventor's creation
10 Wall., 117 — rollers; Hicks vs. Kesley [1874], must not have been in public use or on sale in the
18 Wall., 674 — wagons; Hails vs. Wormer United States (and the Philippine Islands) for
[1874], 20 Wall., 353 — stoves; Washburn & more than two years prior to his application.
Moen Mfg. Co. vs. Beat "Em All Barbed Wire Co. Without, therefore, committing ourselves as to
[1892], 143 U. S., 275 — barbed wire; Lynch vs. the first two defenses, we propose to base our
Dryden [1873], C. D., 73 — walking cultivators; decision on the one just suggested as more
Torrey vs. Hancock [1910] 184 Fed., 61 — rotary easily disposing of the case. (See 20 R. C. L.,
plows.) 1140-1142.) We do so with full consciousness of
the doubt which arose in the mind of the trial
court, but with the belief that since it has been
shown that the invention was used in public at
Iloilo by others than Vargas, the inventor, more Vargas plows, of which Exhibit 5 was one, in
than two years before the application for the December, 1907; and Exhibit 5, the court found,
patent, the patent is invalid. was a plow completely identical with that for
which the plaintiff had received a patent. The
Although we have spent some time in minor exception, and this in itself corroborative of
arriving at this point, yet, having reached it, the Roces' testimony, is, that the handle of plow
question in the case is single and can be brought Exhibit 5 is marked with the letters "A V" and not
to a narrow compass. Under the English Statute with the words "Patent Applied For" or "Patented
of Monopolies (21 Jac. Ch., 3), and under the Mar. 12, 1912." Salvador Lizarraga, a clerk in a
United States Patent Act of February 21, 1793, business house, testified that he had received
later amended to be as herein quoted, it was plows similar to Exhibits D, 5, and 4, for sale on
always the rule, as stated by Lord Coke, Justice commission in May, 1908, from Bonifacio
Story and other authorities, that to entitle a man Araneta, partner of Vargas in the plow business.
to a patent, the invention must be new to the Ko Pao Ko, a blacksmith, testified that he had
world. (Pennock and Sellers vs. Dialogue [1829], made fifty plow frames in 1905 for Vargas and
2 Pet., 1.) As said by the United States Supreme Araneta, of which Exhibit 4 is one; Exhibit 4, the
Court, "it has been repeatedly held by this court court found, is a plow identical with that patented
that a single instance of public use of the by Vargas, but without share and mould-board.
invention by a patentee for more than two years Alfred Berwin, an employee in the office of
before the date of his application for his patent Attorney John Bordman, testified that on
will be fatal to the validity of the patent when September 21, 1908, he had knowledge of a
issued." (Worley vs. Lower Tobacco Co. [1882], transaction wherein Vargas and Araneta desired
104 U. S., 340; McClurg vs. Kingsland [1843], 1 to obtain money to invest in a plow factory.
How., 202; Consolidated Fruit Jar Co. vs. Wright George Ramon Saul, a mechanic of the "Taller
[1877], 94 U. S., 92; Egbert vs. Lippmann [1881], Visayas" of Strachan and MacMurray, testified
104 U. S., 333; Coffin vs. Ogden [1874], 18 Wall., that he had made Vargas plow points and shares
120; Manning vs. Cape Ann Isinglass and Glue of the present form upon order of Araneta and
Co. [1883], 108 U. S., 462; Andrews vs. Hovey Vargas in 1906 and 1907. William MacMurray,
[1887], 123 U. S., 267; Campbell vs. City of New proprietor of the "Taller Visayas," corroborated
York [1888], 1 L. R. A., 48.) the evidence of the witness Saul by the exhibition
of the account against Vargas and Araneta
On the facts, we think the testimony wherein, under date of December 31, 1906,
shows such a public use of the Vargas plow as to appears the item "12 new soft steel plow shares
render the patent invalid. Nicolas Roces, a forged and bored for rivets as per sample."
farmer, testified that he had bought twenty Against all this, was the testimony of the plaintiff
Angel Vargas who denied that Saul could have the costs of this instance against the appellant.
seen the Vargas plow in 1906 and 1907, who So ordered.
denied that Roces purchased the Vargas plow in
1907, who denied that Lizarraga could have Arellano, C. J., Torres, Johnson, Araullo, Street, Avanceña
acted as an agent to sell two plows in November, and Moir, JJ., concur.
1908, who denied any remembrance of the loan ||| (Vargas v. F. M. Yaptico & Co. (Ltd.), G.R. No. 14101,
mentioned by Berwin as having been negotiated [September 24, 1919], 40 PHIL 195-203)
in September, 1908, who denied that Ko Pao Ko
made fifty plows one of which is Exhibit 4, for
Araneta and Vargas in 1905. Plaintiff introduced
his books to substantiate his oral testimony. It is
hardly believable that five or six witnesses for the
defense would deliberately perjure themselves
under oath. One might, but that all together, of
different nationalities, would enter into such a
conspiracy, is to suppose the improbable.
DECISION
IMPERIAL, J p:
The defendants Petronila Chua, Coo
Pao and Coo Teng Hee, appeal from the
judgment of the Court of First Instance of Manila,
the dispositive part of which reads as follows:
"Wherefore, judgment
is rendered in favor of the
plaintiff and against the
defendants, ordering each and
every one of them, their agents,
mandatories and attorneys, to
henceforth abstain from making,
manufacturing, selling or
offering for sale plows of the
type of those manufactured by
ANGEL VARGAS, plaintiff-appellee, vs. PETRONILA CHUA the plaintiff, and particularly
ET AL., defendants-appellants. plows of the model of Exhibits B,
Jose F. Orozco for appellants. B-1 and B-2, and to render to the
Jose Yulo for appellee. plaintiff a detailed accounting of
SYLLABUS the profits obtained by them
from the manufacture and sale
of said type of plows within thirty "1. That the plaintiff,
(30) days from the date of the Angel Vargas, is of age and a
receipt by them of notice of this resident of the municipality of
decision, with costs against all of Iloilo, Iloilo, Philippine Islands.
the defendants."
"13. That, on
September 19, 1928, the
defendant Cham Samco & "16. That the
Sons, sold in its store on Sto. document, Exhibit 1-Chua, is a
Cristo St., Manila, and plow certified copy of the amended
Exhibit B-1, for the sale of which complaint, the decision of the
invoice Exhibit D was issued. Court of First Instance of Iloilo
and that of the Supreme Court
(R.G. No. 14101) in civil case
No. 3044 of Iloilo, entitled 'Angel
Vargas, plaintiff, vs. F.M.
"14. That, on Yaptico & Co., Ltd., defendant',
December 20, 1927, the plaintiff and that Exhibit 2-Chua et al. is
herein, through his attorneys a certified copy of Patent No.
Paredes, Buencamino & Yulo, 1,020,232, to which the
sent by registered mail to the aforementioned complaint and
herein defendant, Coo Kun & decision refer, issued in favor of
Sons Hardware Co., at Iloilo, the Angel Vargas by the United
original of the letter Exhibit E, States Patent Office on March
which was received by it on 12, 1912, and that Exhibit 3-
September 28, 1927, according Chua et al. represents the plow
to the receipt marked Exhibit E- manufactured by Angel Vargas
1 attached hereto. in accordance with his Patent
marked Exhibit 2-Chua et al."
Avanceña, C.J., Street, Villamor, Ostrand, Villa-Real, Abad 4. ID.; INFRINGEMENT. — The
Santos, Hull, Vickers and Butte, JJ., concur. defendant cannot be made civilly liable for
PATRICK HENRY FRANK and WILLIAM HENRY GOHN, alleged infringement of the patent on which the
plaintiffs-appellants, vs. G. KOSUYAMA, defendant- action is based on the ground that the machines
appellee. manufactured and sold by him did not have any
J. W. Ferrier for appellants. essential part unknown to the public in the
Pablo Lorenzo for appellee. Province of Davao at the time the plaintiffs
SYLLABUS applied for and obtained their patent for improved
1. PATIENT; ESSENTIAL ELEMENTS. abaca stripping machines.
— Strictly speaking, the hemp stripping machine
of the plaintiffs does not constitute an invention 5. APPLICABILITY OF THE
on the ground that it lacks the element of novelty, DOCTRINE OF "STARE DECISIS". — The
originality and precedence (48 C. J., sec. 101, p. doctrine laid down in the case of Frank and Gohn
97, and sec. 102, p. 98). vs. Benito (51 Phil., 712), to the effect that the
defendant therein had actually infringed upon the
2. ID.; KNOWLEDGE AND USE BY patent of the therein plaintiffs cannot be invoked
THE PUBLIC. — Before the plaintiffs herein in this case. It is true that the then plaintiffs in the
obtained their patent, they themselves had former and those in the latter case are the same
already publicly used the same kind of machine but the defendant therein did not set up the
for many months, at least, and, various other special defenses as alleged by the herein
machines, having in general, the same defendant. Furthermore, the plaintiffs therein had
characteristics and important parts as that of the only confined themselves to presenting the
said plaintiffs, were known in the Province of patent, or rather, a copy thereof, wherein mention
Davao. of the "spindle" was made, and this court took for
granted their claim that it was one of the essential
3. ID.; ANNULMENT. — characteristics thereof which had been imitated
Notwithstanding all the facts herein stated, the or copied by the therein defendant.
trial court did not annul the plaintiffs' patent and
the defendant herein insists that the patent in DECISION
question should be declared null and void. In view IMPERIAL, J p:
of the nature of the action brought by the Patent No. 1519579 (Exhibit 117) on
improvement in hemp stripping machines, issued
by the United States Patent Office on December In their amended complaint, the
16, 1924, and registered in the Bureau of plaintiffs alleged that their hemp stripping
Commerce and Industry of the Philippine Islands machines, for which they obtained a patent, have
on March 17, 1925, was the origin of this action the following characteristics: "A stripping head, a
brought by the plaintiffs herein who prayed that horizontal table, a stripping knife supported upon
judgment be rendered against the defendant, such table, a tapering spindle, a rest holder
ordering him thereby to refrain immediately from adjustably secured on the table portion, a lever
the manufacture and sale off machines similar to and means of compelling the knife to close upon
the one covered by the patent; to render an the table, a pallet or rest in the bottom of the table,
accounting of the profits realized from the a resilient cushion under such pallet or rest." In
manufacture and sale of the machines in spite of the fact that they filed an amended
question; that in case of refusal or failure to complaint from which the "spindle' or conical
render such accounting, the defendant be drum, which was the only characteristic feature of
ordered to pay the plaintiffs the sum of P60 as the machine mentioned in the original complaint,
profit on each machine manufactured or sold by was eliminated, the plaintiffs insisted that the said
him; that upon approval of the required bond, said part constitutes the essential differences
defendant be restrained from continuing the between the machine in question and other
manufacture and sale of the same kind of machines and it was the principal consideration
machines; that after the trial the preliminary upon which their patent was issued. The said
injunction issued therein be declared permanent; plaintiffs sustained their contention on this point
and, lastly, that the said defendant be sentenced even in their printed brief and memorandum filed
to pay the costs and whatever damages the in this appeal.
plaintiffs might be able to prove therein. The
action therefore was based upon alleged During the trial, both parties presented
infringement by the defendant of the rights patent voluminous evidence from which the trial court
through the manufacture and sale by the former arrived at the following conclusions:
of machines similar to that covered by the
aforesaid patent. "In considering their
machine the plaintiffs did
The plaintiffs appealed from the nothing but improve, to a certain
judgment rendered by the trial court dismissing degree, those that were already
their complaint, with costs, as well as the in vogue and in actual use in
defendant's counterclaim of P10,000. The hemp producing provinces. It
defendant did not appeal. cannot be said that they have
invented the 'spindle' inasmuch
as this was already known since of the most primitive of hemp
the year 1909 or 1910. Neither stripping machines.
can it be said that they have
invented the stripping knife and
the contrivance which controls
the movement and pressure
thereof on the ground that "On the other hand,
stripping knives together with although the plaintiffs alleged in
their control sets were already in their original complaint that 'the
actual use in the different principal and important feature
stripping machines long before of said machine is a spindle
their machines appeared. upon which the hemp to be
Neither can it be said that they stripped is wound in the process
invented the flywheel because of stripping,' nevertheless, in
that part or piece thereof, so their amended complaint of
essential in every machine from March 3, 1928, which was filed
time immemorial, was already after a portion of the evidence
known and actually employed in therein had already been
hemp stripping machines such submitted and it was known that
as those of Riesgo (Exhibit 4-A), the use of the spindle was
Crumb (Exhibit 1-A), Icsiar nothing new, they still made the
(Exhibit A-Suzara), Browne allegations appearing in
(Exhibit 28-A), McFie, etc., all of paragraph 3 of their said
which were in use for the benefit amended complaint and
of hemp long before the reproduced on pages 2, 3, 4 and
appearance of the plaintiffs' 5 hereof, copying the same from
machines in the market. Much the application which they filed
less can it be said that they with the United States Patent
invented the pedal to raise the Office, under which they
knife in order to allow the hemp obtained their patent in question.
to be stripped to pass under it, The aforesaid application clearly
on the ground that the use of shows that what they applied for
such contrivance has, likewise, was not a patent for a 'pioneer or
been known since the invention primary invention' but only for
some 'new and useful
improvement in hemp stripping Notwithstanding the foregoing facts, the
machines.'" trial court did not decree the annulment of the
plaintiffs' patent and the herein defendant-
appellee insists that the patent in question should
be declared null and void. We are of the opinion
that it would be improper and untimely to render
We have carefully reviewed the a similar judgment, in view of the nature of the
evidence presented and have had the opportunity action brought by the plaintiffs and in the absence
of ascertaining the truth of the conclusions above of a cross-complaint to that effect. For the
stated. We agree with the trial court that, strictly purposes of this appeal, suffice it to hold that the
speaking, the hemp stripping machine of the defendant is not civilly liable for alleged
plaintiffs does not constitute an invention on the infringement of the patent in question.
ground that it lacks the elements of novelty,
originality and precedence (48 C. J., sec. 101, p. In the light of sound logic, the plaintiffs
97, and sec. 102, p. 98). In fact, before the cannot insists that the "spindle" was a patented
plaintiffs herein obtained their patent, they invention on the ground that said part of the
themselves had already publicly used the same machine was voluntarily omitted by them from
kind of machine for some months, at least, and, their application, as evidenced by the
various other machines, having in general, the photographic copy thereof (Exhibit 41) wherein it
same characteristics and important parts as that likewise appears that the patent on Improved
of the said plaintiffs, were known in the Province Hemp Stripping Machines was issued minus the
of Davao. Machines known as Molo, Riesgo, "spindle" in question. Were we to stress to this
Crumb, Icsiar, Browne and McFie were already part of the machine, we would be giving the
known in that locality and used by the owners of patent obtained by the plaintiffs a wider range
hemp plantations before the machine of the than it actually has, which is contrary to the
plaintiffs came into existence. It may also be principles of interpretation in matters to patents.
noted that Adrian de Icsiar applied for a patent on
an invention which resulted in the rejection by the In support of their claim the plaintiffs
United States Patent Office of the plaintiffs' invoke the doctrine laid down by this court in the
original application for a patent on the so-called case of Frank and Gohn vs. Benito (51 Phil.,
"spindle" or conical drum which was then in 712), wherein it was held that the therein
actual use in the Dringman and Icsiar hemp defendant really infringed upon the patent of the
stripping machines. therein plaintiffs. It may be noted that the plaintiffs
in the former and those in the latter case are the
same and that the patent then involved is the very
same one upon which the present action of the the Province of Davao at the time the plaintiffs
plaintiffs is based. The above-cited case, applied for an obtained their patent for improved
however, cannot be invoked as a precedent to hemp stripping machines, the judgment appealed
justify a judgment in favor of the plaintiffs- from is hereby affirmed, with costs against the
appellants on the ground that the facts in one plaintiffs-appellants. So ordered.
case are entirely different from those in the other.
In the former case the defendant did not set up
the same special defenses as those alleged by DOMICIANO A. AGUAS, petitioner, vs. CONRADO G. DE
the herein defendant in his answer and the LEON and COURT OF APPEALS, respondents.
plaintiffs therein confined themselves to Estanislao Fernandez for petitioner.
presenting the patent, or rather a copy thereof, Cecilia P. de Leon for respondents.
wherein the "spindle' was mentioned, and this SYNOPSIS
court took for granted their claim that it was one Private respondent, who had been granted and issued
of the essential characteristics thereof which was Letters Patent No. 658 by the Philippines Patent Office for his
imitated or copied by the then defendant. Thus it invention of certain new and useful improvements in the
came to pass that the "spindle" in question was process of making mosaic pre-cast tiles, filed a complaint for
insistently mentioned in the decision rendered on infringement of patent against petitioner Domiciano Aguas
appeal as the essential part of the plaintiffs' and F. H. Aquino & Sons. Petitioner Aguas, in his answer,
machine allegedly imitated by the then alleged that respondent's patent was unlawfully secured
defendant. In the case under consideration, it is through misrepresentations as the latter's invention is neither
obvious that the "spindle" is not an integral part of inventive nor new and hence not patentable; and that he
the machine patented by the plaintiffs on the cannot be held guilty of infringement because his products,
ground that it was eliminated from their patent which had been duly patented, were different from those of
inasmuch as it was expressly excluded in their the private respondent. The trial court, finding respondent's
application, as evidenced by the aforesaid Exhibit patent valid and infringed, ordered petitioner Aguas and F. H.
41. Aquino & Sons to pay respondent jointly and severally actual,
moral and exemplary damages and attorney's fees. Petitioner
appealed to the Court of Appeals questioning the validity of
the patent issued by the Philippines Patent Office and the
Wherefore, reiterating that the patentability of respondent's tile-making process. The
defendant cannot be held civilly liable for alleged Appellate Court, however, sustained the trial court's decision
infringement of the patent upon which the present but greatly reduced the award of moral damages. Meanwhile,
action is based on the ground that there is no private respondent's patent right expired, hence, in this
essential part of the machine manufactured and petition, only the right of said private respondent to damages
sold by him, which was unknown to the public in will be determined.
The Supreme Court, affirming the decision of the trial court accepted the thinness of the private respondent's new tiles
as modified by the Court of Appeals, held that petitioner's as a discovery. There is a presumption that the Philippines
evidence has not overcome the legal presumption on the Patent Office has correctly determined the patentability of the
validity of respondent's patent; and that based on the records, improvement by the private respondent of the process in
respondent's process is an improvement of the old process question.
of tile-making, hence, patentable. 3. ID.; ID.; ID.; WHAT CONSTITUTES A PATENTABLE
Petition dismissed. PROCESS AND/OR IMPROVEMENT; CASE AT BAR. —
SYLLABUS Petitioner's contention that the improvement of respondent is
1. COMMERCIAL LAW; PATENT LAW (REPUBLIC ACT not patentable because it is not new and useful and inventive
NO. 165); MATTERS PATENTABLE THEREUNDER; A is without merit, where the records disclose that private
CASE OF; IMPROVEMENT OF THE OLD PROCESS OF respondent's process is an improvement of the old process
TILE-MAKING IN CASE AT BAR. — Under Section 7, of tile-making and that such improvement is indeed inventive
Republic Act No. 165, as amended, "Any invention of a new and goes beyond the exercise of mechanical skill by which
and useful machine, manufactured product or substance, private respondent has introduced a new kind of tile for a new
process or an improvement of the foregoing, shall be purpose.
patentable." In the case at bar, the contention of the petitioner 4. REMEDIAL LAW; APPEAL; FINALITY OF THE FINDINGS
that the letters-patent of private respondent was actually a OF FACT OF THE TRIAL COURT AND OF THE COURT OF
patent for the old and non-patentable process of making APPEALS; CASE AT BAR, NOT AN EXCEPTION. — Both
mosaic precast tiles is devoid of merit. It should be noted that the trial court and the Court of Appeals found as a fact that
private respondent does not claim to be the discoverer or the petitioner did infringe private respondent's patent. There
inventor of the old process of tile-making. He only claims to is no showing that this case falls under one of the exceptions
have introduced an improvement of said process. In fact, when this Court may overrule the findings of fact of the Court
Letters Patent No. 658 was issued by the Philippines Patent of Appeals.
Office to the private respondent, to protect his rights as the 5. COMMERCIAL LAW; PATENT LAW (REPUBLIC ACT
inventor of "an alleged new and useful improvement in the NO. 165); PATENTS; DAMAGES AWARDED UNDER
process of making mosaic precast tiles." SECTION 42 OF THE PATENT LAW; SUSTAINED IN CASE
2. ID.; ID.; PATENTS; VALIDITY BETTER DETERMINED BY AT BAR. — The Supreme Court finds no reason to reduce
THE PHILIPPINES PATENT OFFICE. — The validity of the the amount of damages and attorneys fee awarded by the
patent issued by the Philippines Patent Office in favor of the trial court under Sec. 42 of the Patent Law which are as
private respondent and the question over the inventiveness, follows; (a) P10,020.99 by way of actual damages; (b)
novelty and usefulness of the improved process therein P50,000 by way of moral damages which was reduced by the
specified and described are matters which are better Court of Appeals to P3,000 by way of compensating appellee
determined by the Philippines Patent Office. The technical for his moral suffering; (c) P5,000 by way of exemplary
staff of the Philippines Patent Office, composed of experts in damages; (d) P5,000 by way of attorney's fees and (e) costs
their field, have, by the issuance of the patent in question, of suit.
DECISION exclusive license to make, use and sell throughout the
FERNANDEZ, J p: Philippines the improvements set forth in said Letters Patent
This is a petition for certiorari to review the decision of the No. 658; that the invention patented by said Patent No. 658
Court of Appeals in CA G.R. No. 37824-R entitled "Conrado is of great utility and of great value to plaintiff and of great
G. de Leon, plaintiff-appellee vs. Domiciano Aguas and F. H. benefit to the public who has demanded and purchased tiles
Aquino and Sons, defendants-appellants," the dispositive embodying the said invention in very large quantities and in
portion of which reads: very rapidly increasing quantities; that he has complied with
"WHEREFORE, with the modification that the Philippine statutes relating to marking patented tiles sold
plaintiff-appellee's award of by him; that the public has in general acknowledged the
moral damages is hereby validity of said Patent No. 658, and has respected plaintiff's
reduced to P3,000.00, the right therein and thereunder; that the defendant Domiciano A.
appealed judgment is hereby Aguas infringed Letters of Patent No. 658 by making, using
affirmed, in all other respects, and selling tiles embodying said patented invention and that
with costs against appellants." 1 defendant F. H. Aquino & Sons is guilty of infringement by
making and furnishing to the defendant Domiciano A. Aguas
the engravings, castings and devices designed and intended
for use and actually used in apparatus for the making of tiles
embodying plaintiff's patented invention; that he has given
On April 14, 1962, Conrado G. de Leon filed in the Court of direct and personal notice to the defendants of their said acts
First Instance of Rizal at Quezon City a complaint for of infringement and requested them to desist, but
infringement of patent against Domiciano A. Aguas and F. H. nevertheless, defendants have refused and neglected to
Aquino and Sons alleging that being the original first and sole desist and have disregarded such request, and continue to
inventor of certain new and useful improvements in the so infringe causing great and irreparable damage to plaintiff;
process of making mosaic pre-cast tiles, he lawfully filed and that if the aforesaid infringement is permitted to continue,
prosecuted an application for Philippine patent, and having further losses and damages and irreparable injury will be
complied in all respects with the statute and the rules of the sustained by the plaintiff; that there is an urgent need for the
Philippines Patent Office, Patent No. 658 was lawfully immediate issuance of a preliminary injunction; that as a
granted and issued to him; that said invention was new, result of the defendants' wrongful conduct, plaintiff has
useful, not known or used by others in this country before his suffered and the defendants are liable to pay him, in addition
invention thereof, not patented or described in any printed to actual damages and loss of profits which would be
publication anywhere before his invention thereof, or more determined upon proper accounting, moral and exemplary or
than one year prior to his application for patent therefor, not corrective damages in the sum of P90,000.00; that plaintiff
patented in any foreign country by him or his legal has been compelled to go to court for the protection and
representatives on application filed more than one year prior enforcement of his patent rights as against the defendants'
to his application in this country; that plaintiff has the act of infringement and to engage the services of counsel,
thereby incurring attorney's fees and expenses of litigation in "WHEREFORE, judgment is hereby
the sum of P5,000.00. 2 rendered in favor of plaintiff and
On April 14, 1962, an order granting the plaintiff's petition for against the defendants:
a Writ of Preliminary Injunction was issued. 3
On May 23, 1962, the defendant Domiciano A. Aguas filed
his answer denying the allegations of the plaintiff and alleging
that: the plaintiff is neither the original first nor sole inventor
of the improvements in the process of making mosaic pre- "1. De
cast tiles, the same having been used by several tile-making claring plaintiff's
factories in the Philippines and abroad years before the patent valid and
alleged invention by de Leon; that Letters Patent No. 658 was infringed;
unlawfully acquired by making it appear in the application in
relation thereto that the process is new and that the plaintiff
is the owner of the process when in truth and in fact the
process incorporated in the patent application has been
known and used in the Philippines by almost all tile makers
long before the alleged use and registration of patent by
plaintiff Conrado G. de Leon; that the registration of the "2. Gra
alleged invention did not confer any right on the plaintiff nting a perpetual
because the registration was unlawfully secured and was a injunction
result of the gross misrepresentation on the part of the plaintiff restraining
that his alleged invention is a new and inventive process; that defendants, their
the allegation of the plaintiff that Patent No. 658 is of great officers, agents,
value to plaintiff and of great benefit to the public is a mere employees,
conclusion of the plaintiff, the truth being that a) the invention associates,
of plaintiff is neither inventive nor new, hence, it is not confederates,
patentable; b) defendant has been granted valid patents and any and all
(Patents No. 108, 109, 110 issued on December 21, 1961) persons acting
on designs for concrete decorative wall tiles; and c) that he under their
can not be guilty of infringement because his products are authority from
different from those of the plaintiff. 4 making and/or
using and/or
The trial court rendered a decision dated December 29, 1965, vending tiles
the dispositive portion of which reads: LLpr embodying said
patented
invention or "3. Ord
adapted to be ering that each
used in and all of the
combination infringing tiles,
embodying the engravings,
same, and from castings and
making, devices, which
manufacturing, are in the
using or selling, possession or
engravings, under the control
castings and of defendants be
devices delivered to
designed and plaintiff;
intended for use
in apparatus for
the making of
tiles embodying
plaintiff's
patented
invention, and
"4. Ord
from offering or
ering the
advertising so to
defendants to
do, and from
jointly and
aiding and
severally pay to
abetting or in
the plaintiff the
any way
following sums
contributing to
of money, to wit:
the infringement
of said patent;
(a) P10,020. "THE TRIAL
99 by way of actual COURT ERRED IN NOT
damages; HOLDING THAT
PLAINTIFF'S PATENT
FOR THE 'PROCESS
OF MAKING MOSAIC
PRE-CAST TILE' IS
(b) P50,000. INVALID BECAUSE
00 by way of moral SAID ALLEGED
damages; PROCESS IS NOT AN
INVENTION OR
DISCOVERY AS THE
SAME HAS ALREADY
(c) P5,000.0 LONG BEEN USED BY
0 by way of exemplary TILE
damages MANUFACTURERS
BOTH ABROAD AND IN
THIS COUNTRY.
(d) P5,000.0
0 by way of attorney's
fees and (e) costs of
suit." 5
"II
"THE TRIAL
COURT ERRED IN NOT
ORDERING THE
CANCELLATION OF
PLAINTIFF- "V
APPELLEE'S LETTERS
PATENT NO. 658,
EXHIBIT L, IN
ACCORDANCE WITH
THE PERTINENT "THE TRIAL
PROVISIONS OF THE COURT ERRED IN NOT
PATENT LAW, HOLDING THAT THE
REPUBLIC ACT 165. DEFENDANT COULD
NEVER BE GUILTY OF
INFRINGEMENT OF
PLAINTIFF'S PATENT
BECAUSE EVEN IN
MATTERS NOT
PATENTED BY THE
PLAINTIFF-LIKE THE
"IV
COMPOSITION AND
PROPORTION OF
INGREDIENTS USED On August 5, 1969, the Court of Appeals affirmed the
AND THE decision of the trial court, with the modification that plaintiff-
STRUCTURAL appellee's award of moral damages was reduced to
DESIGNS OF THE P3,000.00. 7
MOULD AND THE TILE The petitioner assigns the following errors supposedly
PRODUCED — THAT committed by the Court of Appeals:
OF THE DEFENDANT "It is now respectfully submitted that the
ARE DIFFERENT. Court of Appeals committed the
following errors involving
questions of law, to wit: