AIR PHILIPPINES CORPORATION VS PENNSWELL

AIR PHILIPPINES CORPORATION VS PENNSWELL

G.R. NO. 172835

DATE  December 13, 2007

FACTS:

Petitioner is a domestic corporation engaged in the business of air transportation services. Respondent Pennswell Inc was organized to engage in the business of manufacturing and selling industrial chemicals, solvents and special lubricants.

Respondent delivered and sold to petitioner sundry goods in trade. Under the contracts, petitioner’s obligation amounted to P 449,864.98 until the amount would be fully paid. For failure to pay comply with its obligations unders said contract.

Respondent then filed a complaint against the petitioner. Petitioner then filed an ANSWER alleging that the respondent defrauded the former for its previous sale of four items. Said items were misrepresented by respondent as belonging to a new line, but were in truth and in fact, identical with products petitioner had previously purchased from respondent.

During the pendency of the trial, petitioner filed a Motion to Compel respondent to give a detailed list of the ingredients and chemical components of the following products, to wit: (a) Contact Grease and Connector Grease; (b) Thixohtropic Grease and Di-Electric Strength Protective Coating; and (c) Dry Lubricant and Anti-Seize Compound.

RTC: Granted the motion then reversed its prior decision. Ruled infavor of the respondent

CA: Affirmed

ISSUE:

WON the court of appeals ruled was correct when it upheld the ruling of the trial court that the chemical components or ingredients of respondent’s products are trade secrets or industrial secret that are not subject to compulsory disclosure.

RULING:

Yes. A trade secret is defined as a plan or process, tool, mechanism or compound known only to its owner and those of his employees to whom it is necessary to confide it.

The chemical composition, formulation, and ingredients of respondent’s special lubricants are trade secrets within the contemplation of the law. Jurisprudence has consistently acknowledged that the private character of trade secrets-there is a privilege not to disclose one’s trade secret.