Philips Export B.V. vs.

CA
G.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 corporations 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.