COMMLAWREV IPL 10

Diaz v People and Levi Strauss (2013)

Facts
Diaz owned several tailoring shops.
An information was filed against him, alleging that he produced colorable imitations
of Levi's registered trademarks and applied the same to counterfeit patches and
jeans.
NBI procured a search warrant and raided Diaz' premises. It seized several pairs of
jeans that looked very similar to Levis jeans. (The seized jeans had patches and tabs
in the same locations as original Levis jeans.)
RTC found Diaz guilty of trademark infringement.
Diaz argued that he sold LS Jeans, not fake Levis jeans.
SC applied the holistic test and acquitted Diaz.
Held (as relevant to Dean Divina)
The gravamen of the offense of infringement of a registered trademark is the
likelihood of confusion. In applying the Holistic Test, confusion was remote because the
jeans made and sold by Levis Philippines were not only very popular but also quite
expensive, as opposed to Diazs tailored jeans which were acquired on a made-to-order
basis; moreover, since the jeans are expensive, the casual buyer is predisposed to be more
cautious and discriminating in and would prefer to mull over his purchase.
Because purchasers of jeans tend to be more discerning, SC held that Diaz LS Jeans
are not likely to be mistaken for Levis jeans.
/dtagustin