Levi's vs. Live's

Tony Lim was engaged in the manufacture, sale, and distribution of various denim jeans and pants under the brand name “LIVE’S.” Levi Strauss (Phils.), Inc. claimed that a “confusing similarity” could be noted between LEVI’s jeans and Tony Lim’s LIVE’S denim jeans and pants. Is there unfair competition?


SUGGESTER ANSWER:

No. The SC reiterated its ruling in Emerald Garment Manufacturing Corporation v. CA. The Court explained that since maong pants or jeans are not inexpensive, the casual buyer is more cautious and discerning and would prefer to mull over his purchase, making confusion and deception less likely. Where the Court held that in resolving cases of infringement and unfair competition, the courts should take into consideration several factors which would affect its conclusion, to wit: the age, training and education of the usual purchaser, the nature and cost of the article, whether the article is bought for immediate consumption and also the conditions under which it is usually purchased.

“We cannot sustain Secretary Bello’s opinion that to establish probable cause, “it is enough that the respondent gave to his product the general appearance of the product” of petitioner. It bears stressing that that is only one element of unfair competition. All others must be shown to exist. More importantly, the likelihood of confusion exists not only if there is confusing similarity. It should also be likely to cause confusion or mistake or deceive purchasers. Thus, the CA correctly ruled that the mere fact that some resemblance can be pointed out between the marks used does not in itself prove unfair competition. To reiterate, the resemblance must be such as is likely to deceive the ordinary purchaser exercising ordinary care.

The SC further agreed with the CA that the probability of deception must be tested at the point of sale since it is at this point that the ordinary purchaser mulls upon the product and is likely to buy the same under the belief that he is buying another. The test of fraudulent simulation is to be found in the likelihood of deception, or the possibility of deception of some persons in some measure acquainted with an established design and desirous of purchasing the commodity with which that design has been associated. (LEVI STRAUSS (PHILS.), INC vs. TONY LIM G.R. No. 162311, December 4, 2008)