Societe Des Produits Nestle v. CA (G.R. No. 112012)

Facts:

Respondent CFC Corporation filed an application for the registration of the trademark FLAVOR MASTER for instant coffee. Petitioners, a Swiss company and a domestic corporation licensee of Societe, opposed on the ground that it is confusingly similar to its trademark for coffee and coffee extracts: MASTER ROAST and MASTER BLEND. Petitioners contend that the dominant word MASTER is present in the 3 trademarks. Respondent CFC argued that the word MASTER cannot be exclusively appropriated being a descriptive or generic term. BPTTT denied CFC’s application. CA held otherwise.

Issue:

Whether or not the word MASTER is descriptive or generic term incapable of exclusive appropriation.

Ruling: NO.

The word “MASTER” is neither a generic nor a descriptive term. As such, said term cannot be invalidated as a trademark and, therefore, may be legally protected. Generic terms are those which constitute “the common descriptive name of an article or substance,” or comprise the “genus of which the particular product is a species,” or are “commonly used as the name or description of a kind of goods,” or “imply reference to every member of a genus and the exclusion of individuating characters,” or “refer to the basic nature of the wares or services provided rather than to the more idiosyncratic characteristics of a particular product,” and are not legally protectable. On the other hand, a term is descriptive and therefore invalid as a trademark if, as understood in its normal and natural sense, it “forthwith conveys the characteristics, functions, qualities or ingredients of a product to one who has never seen it and does not know what it is,” or “if it forthwith conveys an immediate idea of the ingredients, qualities or characteristics of the goods,” or if it clearly denotes what goods or services are provided in such a way that the consumer does not have to exercise powers of perception or imagination.

Rather, the term “MASTER” is a suggestive term brought about by the advertising scheme of Nestle. Suggestive terms are those which, in the phraseology of one court, require “imagination, thought and perception to reach a conclusion as to the nature of the goods.” Such terms, “which subtly connote something about the product,” are eligible for protection in the absence of secondary meaning. While suggestive marks are capable of shedding “some light” upon certain characteristics of the goods or services in dispute, they nevertheless involve “an element of incongruity,” “figurativeness,” or ” imaginative effort on the part of the observer.” The term “MASTER”, therefore, has acquired a certain connotation to mean the coffee products MASTER ROAST and MASTER BLEND produced by Nestle. As such, the use by CFC of the term “MASTER” in the trademark for its coffee product FLAVOR MASTER is likely to cause confusion or mistake or even to deceive the ordinary purchasers.

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