Philips Export BV vs CA

G.R. No. 96161, February 21, 1992

Ponente: Melencio-Herrera, J

FACTS:
Petitioner, foreign corporation established in 1956, under the law of Netherlands, wanted
the cancellation of the Certificate of Registration of Standard PHILIPS Corp., a domestic
corporation registered on May 1982 which allegedly wanted to ride on the popularity and
name of the foreign corp to sell its products

ISSUE: WON Standard Philips change its corporate name given that PEBV acquired
exclusive right over the
word “PHILIPS”, hence, there is confusing similarity, if not infringement, between the two
corporate names?

RULING:
THE COURT RULED IN THE AFFIRMATIVE. Court held that trade name being
important, it should be protected against the whole world in the same manner as a corp.
may protects its tangible property against trespass or conversion.

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 world in the same manner as it may
protect its tangible property, real or personal, against trespass or conversion. It is
regarded, to a certain extent, as a property right and one which cannot be impaired or
defeated by subsequent appropriation by another corporation in the same field

PHILIPS is a trademark or trade name which was registered as far back as 1922.
Petitioners, therefore, have the exclusive right to its use which must be free from any
infringement by similarity