Sanrio vs Lim

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SANRIO vs. LIM G.R. No. 168662 February 19, 2008 FACTS: Sanrio (Sanrio) Company Limited filed before the Task-Force on Anti-Intellectual Property Piracy (TAPP) of the Department of Justice (DOJ) a complaint against Edgar Lim, doing business as Orignamura Trading for violation of Section 217 of the Intellectual Property Code on the grounds of infringement of copyrighted animated characters through selling imitations of products bearing said works. Lim, respondent in this case, avers such allegation as he was only a retailer of the said products and that he obtained his merchandise from JC Lucas Creative Products, Inc., Paper Line Graphics, Inc. and Melawares Manufacturing Corporation, which are authorized local manufacturers of such Sanrio products. However, evidence showed that some of the items seized during the search are not among those products which Gift Gate, Inc., exclusive distributor of Sanrio in the Philippines, authorized these manufacturers to produce. The TAPP, DOJ and the Court of Appeals all denied favor to petitioner Sanrio as these quasi-judicial and judicial bodies stood on the failure of the petitioner to comply with the requisites of Section 217, to wit: (1) possession of the infringing copy; and (2) knowledge or suspicion that the copy is an infringement of the genuine article. The petitioner failed to prove that respondent knew that the merchandise he sold was a counterfeit. Respondent, on the other hand, was able to show that he obtained these goods from legitimate sources. As such, the petitioner filed a petition for certiorari to set aside the decision of the Court of Appeals. ISSUE:

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Transcript of Sanrio vs Lim

SANRIO vs. LIM

G.R. No. 168662 February 19, 2008

FACTS:

Sanrio (Sanrio) Company Limited filed before the Task-Force on Anti-Intellectual Property Piracy (TAPP) of the Department of Justice (DOJ) a complaint against Edgar Lim, doing business as Orignamura Trading for violation of Section 217 of the Intellectual Property Code on the grounds of infringement of copyrighted animated characters through selling imitations of products bearing said works.

Lim, respondent in this case, avers such allegation as he was only a retailer of the said products and that he obtained his merchandise from JC Lucas Creative Products, Inc., Paper Line Graphics, Inc. and Melawares Manufacturing Corporation, which are authorized local manufacturers of such Sanrio products.

However, evidence showed that some of the items seized during the search are not among those products which Gift Gate, Inc., exclusive distributor of Sanrio in the Philippines, authorized these manufacturers to produce.

The TAPP, DOJ and the Court of Appeals all denied favor to petitioner Sanrio as these quasi-judicial and judicial bodies stood on the failure of the petitioner to comply with the requisites of Section 217, to wit: (1) possession of the infringing copy; and (2) knowledge or suspicion that the copy is an infringement of the genuine article. The petitioner failed to prove that respondent knew that the merchandise he sold was a counterfeit. Respondent, on the other hand, was able to show that he obtained these goods from legitimate sources.

As such, the petitioner filed a petition for certiorari to set aside the decision of the Court of Appeals.

ISSUE:

Whether or not for someone to be guilty of infringement of a copyrighted product, such must have knowledge of that such product is only a counterfeit of the original and that such must not come from legitimate sources.

HELD:

No. Any person is liable for copyright infringement, even if he did not know and/ or he obtained his merchandise from legitimate sources, as long as he sold counterfeit goods.