Sanrio Company Limited vs. Edgar C. Lim

G.R. No. 168662, February 19, 2008; per Corona, J.

Facts

Petitioner Sanrio Company Limited, a Japanese corporation, owns the copyright of various animated characters. While it is not engaged in business in the Philippines, its products are sold locally by its exclusive distributor, Gift Gate Incorporated (GGI), which entered into licensing agreements with JC Lucas Creative Products, Inc., Paper Line Graphics, Inc. and Melawares Manufacturing Corporation.

Due to the deluge of counterfeit Sanrio products, GGI asked IP Manila Associates to conduct market research. After conducting several test-buys in various commercial areas, IPMA confirmed that respondent's Orignamura Trading in Tutuban Center, Manila was selling imitations of petitioner's products.

Petitioner filed a complaint-affidavit with the Task-Force on Anti-Intellectual Property Piracy of the Department of Justice against respondent for violation of Section 217 (in relation to Sections 177and 178) of the Intellectual Property Code (IPC). In a resolution, TAPP dismissed the complaint due to insufficiency of evidence. Aggrieved, petitioner filed a petition for certiorari in the CA. The appellate court dismissed the petition on the ground of prescription.

Issue

Whether or not the respondent’s violation already prescribed

Ruling

The Supreme Court ruled that although no information was immediately filed in court, respondent's alleged violation had not yet prescribed. Section 2 of Act 3326 provides that the prescriptive period for violation of special laws starts on the day such offense was committed and is interrupted by the institution of proceedings against respondent (i.e., the accused).

In the recent case of Brillantes v. Court of Appeals, the filing of the complaint for purposes of preliminary investigation interrupts the period of prescription of criminal responsibility. Thus, the prescriptive period for the prosecution of the alleged violation of the IPC was tolled by petitioner's timely filing of the complaint-affidavit before the TAPP.