Philips Export B.V. vs. CAG.R. No. 96161; February 21, 1992

FACTS:Philips Export B.V. (PEBV) filed with the SEC for the cancellation of the word “Philips” the

corporate name of Standard Philips Corporation in view of its prior registration with the Bureau of Patents and the SEC. However, Standard Philips refused to amend its Articles of Incorporation so PEBV filed with the SEC a petition for the issuance of a Writ of Preliminary Injunction, however this was denied ruling that it can only be done when the corporate names are identical and they have at least two words different. This was affirmed by the SEC en banc and the Court of Appeals thus the case at bar.

ISSUE:WON Standard Philips can be enjoined from using Philips in its corporate name.

HELD:YES. A corporation’s right to use its corporate and trade name is a property right, a right in rem,

which it may assert and protect against the whole world. According to Sec. 18 of the Corporation Code, no corporate name may be allowed if the proposed name is identical or deceptively confusingly similar to that of any existing corporation or to any other name already protected by law or is patently deceptive, confusing or contrary to existing law.

For the prohibition to apply, two requisites must be present: (1) the complainant corporation must have acquired a prior right over the use of such corporate name and; (2) the proposed name is either identical or deceptively or confusingly similar to that of any existing corporation or to any other name already protected by law or patently deceptive, confusing or contrary to existing law.