Pharmawealth, Inc. v. Pfizer, Inc

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    PHIL PHARMAWEALTH, INC. v. PFIZER, INC. and PFIZER (PHIL.) INC.G.R. No. 167715, Nov. 17, 2010

    Pfizer (Phil.), Inc. (Pfizer) filed a patent infringement case against Phil Pharmawealth, Inc. (Pharmawealth). It owned a patent over the antibiotic Sulbactam Ampicillin, produced and distributed under the name UNASYN. In 2003, Pfizer discovered that Pharmawealth was supplying the antibiotic to hospitals without the former's consent.

    Pfizer prayed for permanent injunction, damages and the forfeiture and impoundingand temporary restraining order and a preliminary injunction [] from importing, distributing, selling or offering the subject product for sale to any entity in the Philippines.

    In 2003, BLA-IPO issued a preliminary injunction which was effective for ninetydays. Pfizer's motion for extension was denied. Pfizer assailed BLA-IPO's resolutionbefore the CA on special review for certiorari.

    While case pending before CA, Pfizer filed patent infringement case before RTC.RTC granted TRO conditional on payment of a bond. It also issued writ of preliminary injunction against Pharmawealth's sale and distribution of Sulbactam Ampicillin.

    In 2005, CA approved bond and issued TRO.

    Pharmawealth filed motion to dismiss, claiming that (1) Pfizer's patent expired onJuly 16, 2004; (2) CA has no jurisdiction to review BLA-IPO resolution.

    SCQ: Can an injunctive relief be issued based on an action of patent infringementwhen the patent allegedly infringed has already lapsed?

    A: No. The exclusive right of a patentee to make, use and sell a patented product, article or process exists only during the term of the patent (Rep. Act No. 165, sec. 37). There are two requisites for the grant of preliminary injunction: (1) the existence of a clear and unmistakable right that must be protected; and (2) an urgent and paramount necessity for the writ to prevent serious damage (Rul

    es of Court, Rule 58, sec. 3). Pfizer did not possess the first element becauseits patent had expired at the time CA issued TRO.

    Q: What tribunal has jurisdiction to review the decisions of the Director of Legal Affairs of the Intellectual Property Office?

    A: CA, in this PARTICULAR instance involving an interlocutory order. Though theDirector-General IPO exercises exclusive appellate jurisdiction over DECISIONS of BLA-IPO, this case involves a motion for extension. The Intellectual PropertyCode is silent with regard to remedies for interlocutory orders, thus the Rulesof Court apply to fill in the gaps. Furthermore, motion for extension no longerrequires specialised, administrative knowledge of BLA-IPO but a legal question properly recognizable by the CA.

    RA 8293 is silent with respect to any remedy available to litigants who intend toquestion an interlocutory order issued by the BLA-IPO. Moreover, Section 1(c),Rule 14 of the Rules and Regulations on Administrative Complaints for Violationof Laws Involving Intellectual Property Rights simply provides that interlocutory orders shall not be appealable. The said Rules and Regulations do not prescribe a procedure within the administrative machinery to be followed in assailing orders issued by the BLA-IPO pending final resolution of a case filed with them. Hence, in the absence of such a remedy, the provisions of the Rules of Court shall apply in a suppletory manner, as provided under Section 3, Rule 1 of the same

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    Rules and Regulations. Hence, in the present case, respondents correctly resorted to the filing of a special civil action for certiorari with the CA to questionthe assailed Orders of the BLA-IPO, as they cannot appeal therefrom and they have no other plain, speedy and adequate remedy in the ordinary course of law. This is consistent with Sections 1 and 4, Rule 65 of the Rules of Court, as amended.