FACTS:

Pearl and Dean is a corporation engaged in the manufacture of advertising

display units referred to as light boxes and these light boxes were marketed under the
trademark Poster Ads. Pearl and Dean entered into a contract with Shoemart, Inc. for
the lease and installation of the light boxes in SM North Edsa. However, due to
construction constraints, Shoemart, Inc offered as an alternative SM Makati and SM
Cubao.

After Pearl and Dean’s contract was rescinded, exact copies of its light boxes
were installed in various SM malls, fabricated by Metro Industrial Services and later
by EYD Rainbow Advertising Corporation. Pearl and Dean sent a letter to Shoemart
and its sister company, North Edsa Marketing to cease using the light boxes and to
remove them from the malls, and demanded the discontinued used of the trademark
“Poster Ads”.

Unsatisfied with the compliance of its demands, Pearl and Dean sued Shoemart
which was ruled by the trial court in their favor. On appeal, however, the Court of
Appeals reversed the trial court’s decision.

ISSUE:

Whether Pearl and Dean’s copyright registration for its light boxes and the
trademark registration of “Poster Ads” preclude Shoemart and North Edsa Marketing
from using the same.

HELD:

No, Pearl and Dean secured its copyright under the classification class “o”
work. This being so, its protection extended only to the technical drawings and not to
the light box itself. Pearl and Dean cannot exclude others from the manufacture, sale
and commercial use over the light boxes on the sole basis of its copyright, certificated
over the technical drawings. It cannot be the intention of the law that the right of
exclusivity would be granted for a longer time through the simplified procedure of
copyright registration with the National Library, without the rigor of defending the
patentability of its “invention” before the IPO and the public.

On the other hand, there has been no evidence that Pearl and Dean’s use of
“Poster Ads” was distinctive or well known. “Poster Ads” was too generic a name to
identify it to a specific company or entity. “Poster Ads” was generic and incapable of
being used as a trademark because it was used in the field of poster advertising, the
very business engaged by Pearl and Dean. Furthermore, Pearl and Dean’s exclusive
right to the use of “Poster Ads” is limited to what is written in its certificate of
registration. Shoemart cannot be held liable for the infringement of the trademark.