Republic of the Philippines

SUPREME COURT
Manila
THIRD DIVISION
G.R. No. 101897. March 5, 1993.
LYCEUM O THE PHILIPPINES! INC"! petitione#! $s" COURT O %PPE%LS! LYCEUM O
%P%RRI! LYCEUM O C%&%'%N! LYCEUM O C%M%L%NIU'%N! INC"! LYCEUM O L%LLO!
INC"! LYCEUM O TU%O! INC"! &UHI LYCEUM! CENTR%L LYCEUM O C%T%NDU%NES!
LYCEUM O SOUTHERN PHILIPPINES! LYCEUM O E%STERN MIND%N%O! INC" an(
)ESTERN P%N'%SIN%N LYCEUM! INC"! #espon(ents"
*uisu+bin,! To##es - E$an,elista La. O/ces an( %+b#osio Pa(illa fo# petitione#"
%ntonio M" Nu0les an( Pu#un,an! Chato! Chato! Ta##iela - Tan La. O/ces fo#
#espon(ents"
#oilan Siobal fo# )este#n Pan,asinan L0ceu+"
SYLL%&US
1" CORPOR%TION L%)2 CORPOR%TE N%MES2 RE'ISTR%TION O PROPOSED N%ME
)HICH IS IDENTIC%L OR CONUSIN'LY SIMIL%R TO TH%T O %NY E3ISTIN'
CORPOR%TION! PROHI&ITED2 CONUSION %ND DECEPTION EECTIVELY PRECLUDED
&Y THE %PPENDIN' O 'EO'R%PHIC N%MES TO THE )ORD 4LYCEUM4" 5 The
%#ticles of Inco#po#ation of a co#po#ation +ust! a+on, othe# thin,s! set out the
na+e of the co#po#ation" Section 16 of the Co#po#ation Co(e establishes a #est#icti$e
#ule insofa# as co#po#ate na+es a#e conce#ne(7 4Section 16" Co#po#ate na+e" 5 No
co#po#ate na+e +a0 be allo.e( b0 the Secu#ities an E8chan,e Co++ission if the
p#opose( na+e is i(entical o# (ecepti$el0 o# confusin,l0 si+ila# to that of an0
e8istin, co#po#ation o# to an0 othe# na+e al#ea(0 p#otecte( b0 la. o# is patentl0
(ecepti$e! confusin, o# cont#a#0 to e8istin, la.s" )hen a chan,e in the co#po#ate
na+e is app#o$e(! the Co++ission shall issue an a+en(e( ce#ti9cate of
inco#po#ation un(e# the a+en(e( na+e"4 The polic0 un(e#l0in, the p#ohibition in
Section 16 a,ainst the #e,ist#ation of a co#po#ate na+e .hich is 4i(entical o#
(ecepti$el0 o# confusin,l0 si+ila#4 to that of an0 e8istin, co#po#ation o# .hich is
4patentl0 (ecepti$e4 o# 4patentl0 confusin,4 o# 4cont#a#0 to e8istin, la.s!4 is the
a$oi(ance of f#au( upon the public .hich .oul( ha$e occasion to (eal .ith the
entit0 conce#ne(! the e$asion of le,al obli,ations an( (uties! an( the #e(uction of
(i/culties of a(+inist#ation an( supe#$ision o$e# co#po#ations" )e (o not consi(e#
that the co#po#ate na+es of p#i$ate #espon(ent institutions a#e 4i(entical .ith! o#
(ecepti$el0 o# confusin,l0 si+ila#4 to that of the petitione# institution" T#ue enou,h!
the co#po#ate na+es of p#i$ate #espon(ent entities all ca##0 the .o#( 4L0ceu+4 but
confusion an( (eception a#e e:ecti$el0 p#eclu(e( b0 the appen(in, of ,eo,#aphic
na+es to the .o#( 4L0ceu+"4 Thus! .e (o not belie$e that the 4L0ceu+ of %pa##i4
can be +ista;en b0 the ,ene#al public fo# the L0ceu+ of the Philippines! o# that the
4L0ceu+ of Ca+alaniu,an4 .oul( be confuse( .ith the L0ceu+ of the Philippines"
<" ID"2 ID"2 DOCTRINE O SECOND%RY ME%NIN'2 USE O )ORD 4LYCEUM!4 NOT
%TTENDED )ITH E3CLUSIVITY" 5 It is clai+e(! ho.e$e#! b0 petitione# that the .o#(
4L0ceu+4 has ac=ui#e( a secon(a#0 +eanin, in #elation to petitione# .ith the #esult
that .o#(! althou,h o#i,inall0 a ,ene#ic! has beco+e app#op#iable b0 petitione# to
the e8clusion of othe# institutions li;e p#i$ate #espon(ents he#ein" The (oct#ine of
secon(a#0 +eanin, o#i,inate( in the 9el( of t#a(e+a#; la." Its application has!
ho.e$e#! been e8ten(e( to co#po#ate na+es sine the #i,ht to use a co#po#ate na+e
to the e8clusion of othe#s is base( upon the sa+e p#inciple .hich un(e#lies the #i,ht
to use a pa#ticula# t#a(e+a#; o# t#a(ena+e" In Philippine Nut In(ust#0! Inc" $"
Stan(a#( &#an(s! Inc"! the (oct#ine of secon(a#0 +eanin, .as elabo#ate( in the
follo.in, te#+s7 4 " " " a .o#( o# ph#ase o#i,inall0 incapable of e8clusi$e
app#op#iation .ith #efe#ence to an a#ticle on the +a#;et! because ,eo,#aphicall0 o#
othe#.ise (esc#ipti$e! +i,ht ne$e#theless ha$e been use( so lon, an( so
e8clusi$el0 b0 one p#o(uce# .ith #efe#ence to his a#ticle that! in that t#a(e an( to
that b#anch of the pu#chasin, public! the .o#( o# ph#ase has co+e to +ean that the
a#ticle .as his p#o(uct"4 The =uestion .hich a#ises! the#efo#e! is .hethe# o# not the
use b0 petitione# of 4L0ceu+4 in its co#po#ate na+e has been fo# such len,th of ti+e
an( .ith such e8clusi$it0 as to ha$e beco+e associate( o# i(enti9e( .ith the
petitione# institution in the +in( of the ,ene#al public >o# at least that po#tion of the
,ene#al public .hich has to (o .ith schools?" The Cou#t of %ppeals #eco,ni@e( this
issue an( ans.e#e( it in the ne,ati$e7 4Un(e# the (oct#ine of secon(a#0 +eanin,! a
.o#( o# ph#ase o#i,inall0 incapable of e8clusi$e app#op#iation .ith #efe#ence to an
a#ticle in the +a#;et! because ,eo,#aphical o# othe#.ise (esc#ipti$e +i,ht
ne$e#theless ha$e been use( so lon, an( so e8clusi$el0 b0 one p#o(uce# .ith
#efe#ence to this a#ticle that! in that t#a(e an( to that ,#oup of the pu#chasin, public!
the .o#( o# ph#ase has co+e to +ean that the a#ticle .as his p#o(uce >%na %n, $s"
To#ibio Teo(o#o! AB Phil" CD?" This ci#cu+stance has been #efe##e( to as the
(istincti$eness into .hich the na+e o# ph#ase has e$ol$e( th#ou,h the substantial
an( e8clusi$e use of the sa+e fo# a consi(e#able pe#io( of ti+e" " " " No e$i(ence
.as e$e# p#esente( in the hea#in, befo#e the Co++ission .hich su/cientl0 p#o$e(
that the .o#( EL0ceu+E has in(ee( ac=ui#e( secon(a#0 +eanin, in fa$o# of the
appellant" If the#e .as an0 of this ;in(! the sa+e ten( to p#o$e onl0 that the
appellant ha( been usin, the (ispute( .o#( fo# a lon, pe#io( of ti+e" " " " In othe#
.o#(s! .hile the appellant +a0 ha$e p#o$e( that it ha( been usin, the .o#(
EL0ceu+E fo# a lon, pe#io( of ti+e! this fact alone (i( not a+ount to +ean that the
sai( .o#( ha( ac=ui#e( secon(a#0 +eanin, in its fa$o# because the appellant faile(
to p#o$e that it ha( been usin, the sa+e .o#( all b0 itself to the e8clusion of othe#s"
Mo#e so! the#e .as no e$i(ence p#esente( to p#o$e that confusion .ill su#el0 a#ise if
the sa+e .o#( .e#e to be use( b0 othe# e(ucational institutions" Conse=uentl0! the
alle,ations of the appellant in its 9#st t.o assi,ne( e##o#s +ust necessa#il0 fail"4 )e
a,#ee .ith the Cou#t of %ppeals" The nu+be# alone of the p#i$ate #espon(ents in the
case at ba# su,,ests st#on,l0 that petitione#Es use of the .o#( 4L0ceu+4 has not
been atten(e( .ith the e8clusi$it0 essential fo# applicabilit0 of the (oct#ine of
secon(a#0 +eanin," Petitione#Es use of the .o#( 4L0ceu+4 .as not e8clusi$e but .as
in t#uth sha#e( .ith the )este#n Pan,asinan L0ceu+ an( a little late# .ith othe#
p#i$ate #espon(ent institutions .hich #e,iste#e( .ith the SEC usin, 4L0ceu+4 as pa#t
of thei# co#po#ation na+es" The#e +a0 .ell be othe# schools usin, L0ceu+ o# Liceo
in thei# na+es! but not #e,iste#e( .ith the SEC because the0 ha$e not a(opte( the
co#po#ate fo#+ of o#,ani@ation"
F" ID"2 ID"2 MUST &E EV%LU%TED IN THEIR ENTIRETY TO DETERMINE )HETHER THEY
%RE CONUSIN'LY OR DECEPTIVELY SIMIL%R TO %NOTHER CORPOR%TE ENTITYES
N%ME" 5 petitione# institution is not entitle( to a le,all0 enfo#ceable e8clusi$e #i,ht
to use the .o#( 4L0ceu+4 in its co#po#ate na+e an( that othe# institutions +a0 use
4L0ceu+4 as pa#t of thei# co#po#ate na+es" To (ete#+ine .hethe# a ,i$en co#po#ate
na+e is 4i(entical4 o# 4confusin,l0 o# (ecepti$el0 si+ila#4 .ith anothe# entit0Es
co#po#ate na+e! it is not enou,h to asce#tain the p#esence of 4L0ceu+4 o# 4Liceo4 in
both na+es" One +ust e$aluate co#po#ate na+es in thei# enti#et0 an( .hen the
na+e of petitione# is Gu8tapose( .ith the na+es of p#i$ate #espon(ents! the0 a#e not
#easonabl0 #e,a#(e( as 4i(entical4 o# 4confusin,l0 o# (ecepti$el0 si+ila#4 .ith each
othe#"
D E C I S I O N
ELICI%NO! H p7
Petitione# is an e(ucational institution (ul0 #e,iste#e( .ith the Secu#ities an(
E8chan,e Co++ission >4SEC4?" )hen it 9#st #e,iste#e( .ith the SEC on <1
Septe+be# 1ICJ! it use( the co#po#ate na+e L0ceu+ of the Philippines! Inc" an( has
use( that na+e e$e# since"
On <B eb#ua#0 1I6B! petitione# institute( p#ocee(in,s befo#e the SEC to co+pel the
p#i$ate #espon(ents! .hich a#e also e(ucational institutions! to (elete the .o#(
4L0ceu+4 f#o+ thei# co#po#ate na+es an( pe#+anentl0 to enGoin the+ f#o+ usin,
4L0ceu+4 as pa#t of thei# #especti$e na+es"
So+e of the p#i$ate #espon(ents acti$el0 pa#ticipate( in the p#ocee(in,s befo#e the
SEC" These a#e the follo.in,! the (ates of thei# o#i,inal SEC #e,ist#ation bein, set
out belo. opposite thei# #especti$e na+es7
)este#n Pan,asinan L0ceu+ 5 <A Octobe# 1ICJ
L0ceu+ of Caba,an 5 F1 Octobe# 1ID<
L0ceu+ of Lallo! Inc" 5 <D Ma#ch 1IA<
L0ceu+ of %pa##i 5 <6 Ma#ch 1IA<
L0ceu+ of Tuao! Inc" 5 <6 Ma#ch 1IA<
L0ceu+ of Ca+alaniu,an 5 <6 Ma#ch 1IA<
The follo.in, p#i$ate #espon(ents .e#e (ecla#e( in (efault fo# failu#e to 9le an
ans.e# (espite se#$ice of su++ons7
&uhi L0ceu+2
Cent#al L0ceu+ of Catan(uanes2
L0ceu+ of Easte#n Min(anao! Inc"2 an(
L0ceu+ of Southe#n Philippines
Petitione#Es o#i,inal co+plaint befo#e the SEC ha( inclu(e( th#ee >F? othe# entities7
1" The L0ceu+ of Malacana02
<" The L0ceu+ of Ma#bel2 an(
F" The L0ceu+ of %#aullo
The co+plaint .as late# .ith(#a.n insofa# as conce#ne( the L0ceu+ of Malacana0
an( the L0ceu+ of Ma#bel! fo# failu#e to se#$e su++ons upon these t.o ><? entities"
The case a,ainst the Liceu+ of %#aullo .as (is+isse( .hen that school +otu p#op#io
chan,e its co#po#ate na+e to 4Pa+antasan n, %#aullo"4
The bac;,#oun( of the case at ba# nee(s so+e #ecountin," Petitione# ha( so+eti+e
befo#e co++ence( in the SEC a p#ocee(in, >SECKCase No" 1<B1? a,ainst the
L0ceu+ of &a,uio! Inc" to #e=ui#e it to chan,e its co#po#ate na+e an( to a(opt
anothe# na+e not 4si+ila# LtoM o# i(entical4 .ith that of petitione#" In an O#(e# (ate(
<J %p#il 1IAA! %ssociate Co++issione# Hulio Sulit hel( that the co#po#ate na+e of
petitione# an( that of the L0ceu+ of &a,uio! Inc" .e#e substantiall0 i(entical
because of the p#esence of a 4(o+inant4 .o#(! i"e"! 4L0ceu+!4 the na+e of the
,eo,#aphical location of the ca+pus bein, the onl0 .o#( .hich (istin,uishe( one
f#o+ the othe# co#po#ate na+e" The SEC also note( that petitione# ha( #e,iste#e( as
a co#po#ation ahea( of the L0ceu+ of &a,uio! Inc" in point of ti+e! 1 an( o#(e#e( the
latte# to chan,e its na+e to anothe# na+e 4not si+ila# o# i(entical L.ithM4 the na+es
of p#e$iousl0 #e,iste#e( entities"
The L0ceu+ of &a,uio! Inc" assaile( the O#(e# of the SEC befo#e the Sup#e+e Cou#t
in a case (oc;ete( as '"R" No" LKBDCIC" In a Minute Resolution (ate( 1B Septe+be#
1IAA! the Cou#t (enie( the Petition fo# Re$ie. fo# lac; of +e#it" Ent#0 of Gu(,+ent in
that case .as +a(e on <1 Octobe# 1IAA" <
%#+e( .ith the Resolution of this Cou#t in '"R" No" LKBDCIC! petitione# then .#ote all
the e(ucational institutions it coul( 9n( usin, the .o#( 4L0ceu+4 as pa#t of thei#
co#po#ate na+e! an( a($ise( the+ to (iscontinue such use of 4L0ceu+"4 )hen! .ith
the passa,e of ti+e! it beca+e clea# that this #ecou#se ha( faile(! petitione#
institute( befo#e the SEC SECKCase No" <CAI to enfo#ce .hat petitione# clai+s as its
p#op#ieta#0 #i,ht to the .o#( 4L0ceu+"4 The SEC hea#in, o/ce# #en(e#e( a (ecision
sustainin, petitione#Es clai+ to an e8clusi$e #i,ht to use the .o#( 4L0ceu+"4 The
hea#in, o/ce# #elie( upon the SEC #ulin, in the L0ceu+ of &a,uio! Inc" case >SECK
Case No" 1<B1? an( hel( that the .o#( 4L0ceu+4 .as capable of app#op#iation an(
that petitione# ha( ac=ui#e( an enfo#ceable e8clusi$e #i,ht to the use of that .o#("
On appeal! ho.e$e#! b0 p#i$ate #espon(ents to the SEC En &anc! the (ecision of the
hea#in, o/ce# .as #e$e#se( an( set asi(e" The SEC En &anc (i( not consi(e# the
.o#( 4L0ceu+4 to ha$e beco+e so i(enti9e( .ith petitione# as to #en(e# use the#eof
b0 othe# institutions as p#o(ucti$e of confusion about the i(entit0 of the schools
conce#ne( in the +in( of the ,ene#al public" Unli;e its hea#in, o/ce#! the SEC En
&anc hel( that the attachin, of ,eo,#aphical na+es to the .o#( 4L0ceu+4 se#$e(
su/cientl0 to (istin,uish the schools f#o+ one anothe#! especiall0 in $ie. of the fact
that the ca+puses of petitione# an( those of the p#i$ate #espon(ents .e#e
ph0sicall0 =uite #e+ote f#o+ each othe#" F
Petitione# then .ent on appeal to the Cou#t of %ppeals" In its Decision (ate( <6 Hune
1II1! ho.e$e#! the Cou#t of %ppeals a/#+e( the =uestione( O#(e#s of the SEC En
&anc" B Petitione# 9le( a +otion fo# #econsi(e#ation! .ithout success"
&efo#e this Cou#t! petitione# asse#ts that the Cou#t of %ppeals co++itte( the
follo.in, e##o#s7
1" The Cou#t of %ppeals e##e( in hol(in, that the Resolution of the Sup#e+e Cou#t in
'"R" No" LKBDCIC (i( not constitute sta#e (ecisis as to appl0 to this case an( in not
hol(in, that sai( Resolution boun( subse=uent (ete#+inations on the #i,ht to
e8clusi$e use of the .o#( L0ceu+"
<" The Cou#t of %ppeals e##e( in hol(in, that #espon(ent )este#n Pan,asinan
L0ceu+! Inc" .as inco#po#ate( ea#lie# than petitione#"
F" The Cou#t of %ppeals e##e( in hol(in, that the .o#( L0ceu+ has not ac=ui#e( a
secon(a#0 +eanin, in fa$o# of petitione#"
B" The Cou#t of %ppeals e##e( in hol(in, that L0ceu+ as a ,ene#ic .o#( cannot be
app#op#iate( b0 the petitione# to the e8clusion of othe#s" C
)e .ill consi(e# all the fo#e,oin, asc#ibe( e##o#s! thou,h not necessa#il0 se#iati+"
)e be,in b0 notin, that the Resolution of the Cou#t in '"R" No" LKBDCIC (oes not! of
cou#se! constitute #es a(Gu(icata in #espect of the case at ba#! since the#e is no
i(entit0 of pa#ties" Neithe# is sta#e (ecisis pe#tinent! if onl0 because the SEC En &anc
itself has #eKe8a+ine( %ssociate Co++issione# SulitEs #ulin, in the L0ceu+ of &a,uio
case" The Minute Resolution of the Cou#t in '"R" No" LKBDCIC .as not a #easone(
a(option of the Sulit #ulin,"
The %#ticles of Inco#po#ation of a co#po#ation +ust! a+on, othe# thin,s! set out the
na+e of the co#po#ation" D Section 16 of the Co#po#ation Co(e establishes a
#est#icti$e #ule insofa# as co#po#ate na+es a#e conce#ne(7
4SECTION 16" Co#po#ate na+e" 5 No co#po#ate na+e +a0 be allo.e( b0 the
Secu#ities an E8chan,e Co++ission if the p#opose( na+e is i(entical o# (ecepti$el0
o# confusin,l0 si+ila# to that of an0 e8istin, co#po#ation o# to an0 othe# na+e
al#ea(0 p#otecte( b0 la. o# is patentl0 (ecepti$e! confusin, o# cont#a#0 to e8istin,
la.s" )hen a chan,e in the co#po#ate na+e is app#o$e(! the Co++ission shall issue
an a+en(e( ce#ti9cate of inco#po#ation un(e# the a+en(e( na+e"4 >E+phasis
supplie(?
The polic0 un(e#l0in, the p#ohibition in Section 16 a,ainst the #e,ist#ation of a
co#po#ate na+e .hich is 4i(entical o# (ecepti$el0 o# confusin,l0 si+ila#4 to that of
an0 e8istin, co#po#ation o# .hich is 4patentl0 (ecepti$e4 o# 4patentl0 confusin,4 o#
4cont#a#0 to e8istin, la.s!4 is the a$oi(ance of f#au( upon the public .hich .oul(
ha$e occasion to (eal .ith the entit0 conce#ne(! the e$asion of le,al obli,ations an(
(uties! an( the #e(uction of (i/culties of a(+inist#ation an( supe#$ision o$e#
co#po#ations" A
)e (o not consi(e# that the co#po#ate na+es of p#i$ate #espon(ent institutions a#e
4i(entical .ith! o# (ecepti$el0 o# confusin,l0 si+ila#4 to that of the petitione#
institution" T#ue enou,h! the co#po#ate na+es of p#i$ate #espon(ent entities all ca##0
the .o#( 4L0ceu+4 but confusion an( (eception a#e e:ecti$el0 p#eclu(e( b0 the
appen(in, of ,eo,#aphic na+es to the .o#( 4L0ceu+"4 Thus! .e (o not belie$e that
the 4L0ceu+ of %pa##i4 can be +ista;en b0 the ,ene#al public fo# the L0ceu+ of the
Philippines! o# that the 4L0ceu+ of Ca+alaniu,an4 .oul( be confuse( .ith the
L0ceu+ of the Philippines"
Et0+olo,icall0! the .o#( 4L0ceu+4 is the Latin .o#( fo# the '#ee; l0;eion .hich in
tu#n #efe##e( to a localit0 on the #i$e# Ilissius in ancient %thens 4co+p#isin, an
enclosu#e (e(icate( to %pollo an( a(o#ne( .ith fountains an( buil(in,s e#ecte( b0
Pisist#atus! Pe#icles an( L0cu#,us f#e=uente( b0 the 0outh fo# e8e#cise an( b0 the
philosophe# %#istotle an( his follo.e#s fo# teachin,"4 6 In ti+e! the .o#( 4L0ceu+4
beca+e associate( .ith schools an( othe# institutions p#o$i(in, public lectu#es an(
conce#ts an( public (iscussions" Thus to(a0! the .o#( 4L0ceu+4 ,ene#all0 #efe#s to a
school o# an institution of lea#nin," )hile the Latin .o#( 4l0ceu+4 has been
inco#po#ate( into the En,lish lan,ua,e! the .o#( is also foun( in Spanish >liceo? an(
in #ench >l0cee?" %s the Cou#t of %ppeals note( in its Decision! Ro+an Catholic
schools f#e=uentl0 use the te#+2 e","! 4Liceo (e Manila!4 4Liceo (e &aleno4 >in
&aleno! Masbate?! 4Liceo (e Masbate!4 4Liceo (e %lba0"4 I 4L0ceu+4 is in fact as
,ene#ic in cha#acte# as the .o#( 4uni$e#sit0"4 In the na+e of the petitione#!
4L0ceu+4 appea#s to be a substitute fo# 4uni$e#sit024 in othe# places! ho.e$e#!
4L0ceu+!4 o# 4Liceo4 o# 4L0cee4 f#e=uentl0 (enotes a secon(a#0 school o# a colle,e"
It +a0 be >thou,h this is a =uestion of fact .hich .e nee( not #esol$e? that the use
of the .o#( 4L0ceu+4 +a0 not 0et be as .i(esp#ea( as the use of 4uni$e#sit0!4 but it
is clea# that a not inconsi(e#able nu+be# of e(ucational institutions ha$e a(opte(
4L0ceu+4 o# 4Liceo4 as pa#t of thei# co#po#ate na+es" Since 4L0ceu+4 o# 4Liceo4
(enotes a school o# institution of lea#nin,! it is not unnatu#al to use this .o#( to
(esi,nate an entit0 .hich is o#,ani@e( an( ope#atin, as an e(ucational institution"
It is clai+e(! ho.e$e#! b0 petitione# that the .o#( 4L0ceu+4 has ac=ui#e( a
secon(a#0 +eanin, in #elation to petitione# .ith the #esult that that .o#(! althou,h
o#i,inall0 a ,ene#ic! has beco+e app#op#iable b0 petitione# to the e8clusion of othe#
institutions li;e p#i$ate #espon(ents he#ein"
The (oct#ine of secon(a#0 +eanin, o#i,inate( in the 9el( of t#a(e+a#; la." Its
application has! ho.e$e#! been e8ten(e( to co#po#ate na+es sine the #i,ht to use a
co#po#ate na+e to the e8clusion of othe#s is base( upon the sa+e p#inciple .hich
un(e#lies the #i,ht to use a pa#ticula# t#a(e+a#; o# t#a(ena+e" 1J In Philippine Nut
In(ust#0! Inc" $" Stan(a#( &#an(s! Inc"! 11 the (oct#ine of secon(a#0 +eanin, .as
elabo#ate( in the follo.in, te#+s7
4 " " " a .o#( o# ph#ase o#i,inall0 incapable of e8clusi$e app#op#iation .ith #efe#ence
to an a#ticle on the +a#;et! because ,eo,#aphicall0 o# othe#.ise (esc#ipti$e! +i,ht
ne$e#theless ha$e been use( so lon, an( so e8clusi$el0 b0 one p#o(uce# .ith
#efe#ence to his a#ticle that! in that t#a(e an( to that b#anch of the pu#chasin,
public! the .o#( o# ph#ase has co+e to +ean that the a#ticle .as his p#o(uct"4 1<
The =uestion .hich a#ises! the#efo#e! is .hethe# o# not the use b0 petitione# of
4L0ceu+4 in its co#po#ate na+e has been fo# such len,th of ti+e an( .ith such
e8clusi$it0 as to ha$e beco+e associate( o# i(enti9e( .ith the petitione# institution
in the +in( of the ,ene#al public >o# at least that po#tion of the ,ene#al public .hich
has to (o .ith schools?" The Cou#t of %ppeals #eco,ni@e( this issue an( ans.e#e( it
in the ne,ati$e7
4Un(e# the (oct#ine of secon(a#0 +eanin,! a .o#( o# ph#ase o#i,inall0 incapable of
e8clusi$e app#op#iation .ith #efe#ence to an a#ticle in the +a#;et! because
,eo,#aphical o# othe#.ise (esc#ipti$e +i,ht ne$e#theless ha$e been use( so lon,
an( so e8clusi$el0 b0 one p#o(uce# .ith #efe#ence to this a#ticle that! in that t#a(e
an( to that ,#oup of the pu#chasin, public! the .o#( o# ph#ase has co+e to +ean
that the a#ticle .as his p#o(uce >%na %n, $s" To#ibio Teo(o#o! AB Phil" CD?" This
ci#cu+stance has been #efe##e( to as the (istincti$eness into .hich the na+e o#
ph#ase has e$ol$e( th#ou,h the substantial an( e8clusi$e use of the sa+e fo# a
consi(e#able pe#io( of ti+e" Conse=uentl0! the sa+e (oct#ine o# p#inciple cannot be
+a(e to appl0 .he#e the e$i(ence (i( not p#o$e that the business >of the plainti:?
has continue( fo# so lon, a ti+e that it has beco+e of conse=uence an( ac=ui#e( a
,oo( .ill of consi(e#able $alue such that its a#ticles an( p#o(uce ha$e ac=ui#e( a
.ellK;no.n #eputation! an( confusion .ill #esult b0 the use of the (ispute( na+e >b0
the (efen(ant? >%n, Si Hen, $s" )ellin,ton Depa#t+ent Sto#e! Inc"! I< Phil" BB6?"
)ith the fo#e,oin, as a 0a#(stic;! L.eM belie$e the appellant faile( to satisf0 the
afo#e+entione( #e=uisites" No e$i(ence .as e$e# p#esente( in the hea#in, befo#e
the Co++ission .hich su/cientl0 p#o$e( that the .o#( EL0ceu+E has in(ee(
ac=ui#e( secon(a#0 +eanin, in fa$o# of the appellant" If the#e .as an0 of this ;in(!
the sa+e ten( to p#o$e onl0 that the appellant ha( been usin, the (ispute( .o#( fo#
a lon, pe#io( of ti+e" Ne$e#theless! its >appellant? e8clusi$e use of the .o#(
>L0ceu+? .as ne$e# establishe( o# p#o$en as in fact the e$i(ence ten( to con$e0
that the c#ossKclai+ant .as al#ea(0 usin, the .o#( EL0ceu+E se$enteen >1A? 0ea#s
p#io# to the (ate the appellant sta#te( usin, the sa+e .o#( in its co#po#ate na+e"
u#the#+o#e! e(ucational institutions of the Ro+an Catholic Chu#ch ha( been usin,
the sa+e o# si+ila# .o#( li;e ELiceo (e Manila!E ELiceo (e &alenoE >in &aleno!
Masbate?! ELiceo (e Masbate!E ELiceo (e %lba0E lon, befo#e appellant sta#te( usin,
the .o#( EL0ceu+E" The appellant also faile( to p#o$e that the .o#( EL0ceu+E has
beco+e so i(enti9e( .ith its e(ucational institution that confusion .ill su#el0 a#ise in
the +in(s of the public if the sa+e .o#( .e#e to be use( b0 othe# e(ucational
institutions"
In othe# .o#(s! .hile the appellant +a0 ha$e p#o$e( that it ha( been usin, the .o#(
EL0ceu+E fo# a lon, pe#io( of ti+e! this fact alone (i( not a+ount to +ean that the
sai( .o#( ha( ac=ui#e( secon(a#0 +eanin, in its fa$o# because the appellant faile(
to p#o$e that it ha( been usin, the sa+e .o#( all b0 itself to the e8clusion of othe#s"
Mo#e so! the#e .as no e$i(ence p#esente( to p#o$e that confusion .ill su#el0 a#ise if
the sa+e .o#( .e#e to be use( b0 othe# e(ucational institutions" Conse=uentl0! the
alle,ations of the appellant in its 9#st t.o assi,ne( e##o#s +ust necessa#il0 fail"4 1F
>Un(e#sco#in, pa#tl0 in the o#i,inal an( pa#tl0 supplie(?
)e a,#ee .ith the Cou#t of %ppeals" The nu+be# alone of the p#i$ate #espon(ents in
the case at ba# su,,ests st#on,l0 that petitione#Es use of the .o#( 4L0ceu+4 has not
been atten(e( .ith the e8clusi$it0 essential fo# applicabilit0 of the (oct#ine of
secon(a#0 +eanin," It +a0 be note( also that at least one of the p#i$ate
#espon(ents! i"e"! the )este#n Pan,asinan L0ceu+! Inc"! use( the te#+ 4L0ceu+4
se$enteen >1A? 0ea#s befo#e the petitione# #e,iste#e( its o.n co#po#ate na+e .ith
the SEC an( be,an usin, the .o#( 4L0ceu+"4 It follo.s that if an0 institution ha(
ac=ui#e( an e8clusi$e #i,ht to the .o#( 4L0ceu+!4 that institution .oul( ha$e been
the )este#n Pan,asinan L0ceu+! Inc" #athe# than the petitione# institution"
In this connection! petitione# a#,ues that because the )este#n Pan,asinan L0ceu+!
Inc" faile( to #econst#uct its #eco#(s befo#e the SEC in acco#(ance .ith the p#o$isions
of R"%" No" D<! .hich #eco#(s ha( been (est#o0e( (u#in, )o#l( )a# II! )este#n
Pan,asinan L0ceu+ shoul( be (ee+e( to ha$e lost all #i,hts it +a0 ha$e ac=ui#e(
b0 $i#tue of its past #e,ist#ation" It +i,ht be note( that the )este#n Pan,asinan
L0ceu+! Inc" #e,iste#e( .ith the SEC soon afte# petitione# ha( 9le( its o.n
#e,ist#ation on <1 Septe+be# 1ICJ" )hethe# o# not )este#n Pan,asinan L0ceu+!
Inc" +ust be (ee+e( to ha$e lost its #i,hts un(e# its o#i,inal 1IFF #e,ist#ation!
appea#s to us to be =uite secon(a#0 in i+po#tance2 .e #efe# to this ea#lie#
#e,ist#ation si+pl0 to un(e#sco#e the fact that petitione#Es use of the .o#( 4L0ceu+4
.as neithe# the 9#st use of that te#+ in the Philippines no# an e8clusi$e use the#eof"
Petitione#Es use of the .o#( 4L0ceu+4 .as not e8clusi$e but .as in t#uth sha#e( .ith
the )este#n Pan,asinan L0ceu+ an( a little late# .ith othe# p#i$ate #espon(ent
institutions .hich #e,iste#e( .ith the SEC usin, 4L0ceu+4 as pa#t of thei#
co#po#ation na+es" The#e +a0 .ell be othe# schools usin, L0ceu+ o# Liceo in thei#
na+es! but not #e,iste#e( .ith the SEC because the0 ha$e not a(opte( the
co#po#ate fo#+ of o#,ani@ation"
)e conclu(e an( so hol( that petitione# institution is not entitle( to a le,all0
enfo#ceable e8clusi$e #i,ht to use the .o#( 4L0ceu+4 in its co#po#ate na+e an( that
othe# institutions +a0 use 4L0ceu+4 as pa#t of thei# co#po#ate na+es" To (ete#+ine
.hethe# a ,i$en co#po#ate na+e is 4i(entical4 o# 4confusin,l0 o# (ecepti$el0 si+ila#4
.ith anothe# entit0Es co#po#ate na+e! it is not enou,h to asce#tain the p#esence of
4L0ceu+4 o# 4Liceo4 in both na+es" One +ust e$aluate co#po#ate na+es in thei#
enti#et0 an( .hen the na+e of petitione# is Gu8tapose( .ith the na+es of p#i$ate
#espon(ents! the0 a#e not #easonabl0 #e,a#(e( as 4i(entical4 o# 4confusin,l0 o#
(ecepti$el0 si+ila#4 .ith each othe#"
)HEREORE! the petitione# ha$in, faile( to sho. an0 #e$e#sible e##o# on the pa#t of
the public #espon(ent Cou#t of %ppeals! the Petition fo# Re$ie. is DENIED fo# lac; of
+e#it! an( the Decision of the Cou#t of %ppeals (ate( <6 Hune 1II1 is he#eb0
%IRMED" No p#onounce+ent as to costs"
SO ORDERED"
Lyceum o !he Ph"#"$$"%e& '&. Cour! o ($$ea#&
L'R 1J16IA! C Ma#ch 1IIFM
Thi#( Di$ision! eliciano >H?7 B concu#! 1 on te#+inal lea$e
Facts: L0ceu+ of the Philippines Inc" ha( so+eti+e befo#e co++ence( in the SEC a
p#ocee(in, >SECKCase No" 1<B1? a,ainst the L0ceu+ of &a,uio! Inc" to #e=ui#e it to
chan,e its co#po#ate na+e an( to a(opt anothe# na+e not 4si+ila# LtoM o# i(entical4
.ith that of petitione#" In an O#(e# (ate( <J %p#il 1IAA! %ssociate Co++issione# Hulio
Sulit hel( that the co#po#ate na+e of petitione# an( that of the L0ceu+ of &a,uio!
Inc" .e#e substantiall0 i(entical because of the p#esence of a 4(o+inant4 .o#(! i"e"!
4L0ceu+!4 the na+e of the ,eo,#aphical location of the ca+pus bein, the onl0 .o#(
.hich (istin,uishe( one f#o+ the othe# co#po#ate na+e" The SEC also note( that
L0ceu+ of the Philippines Inc" ha( #e,iste#e( as a co#po#ation ahea( of the L0ceu+
of &a,uio! Inc" in point of ti+e! an( o#(e#e( the latte# to chan,e its na+e to anothe#
na+e 4not si+ila# o# i(entical L.ithM4 the na+es of p#e$iousl0 #e,iste#e( entities"
The L0ceu+ of &a,uio! Inc" assaile( the O#(e# of the SEC befo#e the Sup#e+e Cou#t
>'R LKBDCIC?" In a Minute Resolution (ate( 1B Septe+be# 1IAA! the Cou#t (enie(
the Petition fo# Re$ie. fo# lac; of +e#it" Ent#0 of Gu(,+ent in that case .as +a(e on
<1 Octobe# 1IAA"
%#+e( .ith the Resolution of the Sup#e+e Cou#t! the L0ceu+ of the Philippines then
.#ote all the e(ucational institutions it coul( 9n( usin, the .o#( 4L0ceu+4 as pa#t of
thei# co#po#ate na+e! an( a($ise( the+ to (iscontinue such use of 4L0ceu+"4 )hen!
.ith the passa,e of ti+e! it beca+e clea# that this #ecou#se ha( faile(! an( on <B
eb#ua#0 1I6B! L0ceu+ of the Philippines institute( befo#e the SEC SECKCase <CAI
to enfo#ce .hat L0ceu+ of the Philippines clai+s as its p#op#ieta#0 #i,ht to the .o#(
4L0ceu+"4 The SEC hea#in, o/ce# #en(e#e( a (ecision sustainin, petitione#Es clai+
to an e8clusi$e #i,ht to use the .o#( 4L0ceu+"4 The hea#in, o/ce# #elie( upon the
SEC #ulin, in the L0ceu+ of &a,uio! Inc" case >SECKCase 1<B1? an( hel( that the
.o#( 4L0ceu+4 .as capable of app#op#iation an( that petitione# ha( ac=ui#e( an
enfo#ceable e8clusi$e #i,ht to the use of that .o#(" On appeal! ho.e$e#! b0 L0ceu+
Of %pa##i! L0ceu+ Of Caba,an! L0ceu+ Of Ca+alaniu,an! Inc"! L0ceu+ Of Lallo! Inc"!
L0ceu+ Of Tuao! Inc"! &uhi L0ceu+! Cent#al L0ceu+ Of Catan(uanes! L0ceu+ Of
Southe#n Philippines! L0ceu+ Of Easte#n Min(anao! Inc" an( )este#n Pan,asinan
L0ceu+! Inc"!! .hich a#e also e(ucational institutions! to the SEC En &anc! the
(ecision of the hea#in, o/ce# .as #e$e#se( an( set asi(e" The SEC En &anc (i( not
consi(e# the .o#( 4L0ceu+4 to ha$e beco+e so i(enti9e( .ith L0ceu+ of the
Philippines as to #en(e# use the#eof b0 othe# institutions as p#o(ucti$e of confusion
about the i(entit0 of the schools conce#ne( in the +in( of the ,ene#al public" Unli;e
its hea#in, o/ce#! the SEC En &anc hel( that the attachin, of ,eo,#aphical na+es to
the .o#( 4L0ceu+4 se#$e( su/cientl0 to (istin,uish the schools f#o+ one anothe#!
especiall0 in $ie. of the fact that the ca+puses of L0ceu+ of the Philippines an(
those of the othe# L0ceu+s .e#e ph0sicall0 =uite #e+ote f#o+ each othe#" L0ceu+ of
the Philippines then .ent on appeal to the Cou#t of %ppeals" In its Decision (ate( <6
Hune 1II1! ho.e$e#! the Cou#t of %ppeals a/#+e( the =uestione( O#(e#s of the SEC
En &anc" L0ceu+ of the Philippines 9le( a +otion fo# #econsi(e#ation! .ithout
success" L0ceu+ of the Philippines 9le( the petition fo# #e$ie."
Issue [1]: )hethe# the na+es of the conten(in, L0ceu+ schools a#e confusin,l0
si+ila#"
Held [1]: The %#ticles of Inco#po#ation of a co#po#ation +ust! a+on, othe# thin,s!
set out the na+e of the co#po#ation" Section 16 of the Co#po#ation Co(e establishes
a #est#icti$e #ule insofa# as co#po#ate na+es a#e conce#ne(" It p#o$i(es that 4No
co#po#ate na+e +a0 be allo.e( b0 the Secu#ities an E8chan,e Co++ission if the
p#opose( na+e is i(entical o# (ecepti$el0 o# confusin,l0 si+ila# to that of an0
e8istin, co#po#ation o# to an0 othe# na+e al#ea(0 p#otecte( b0 la. o# is patentl0
(ecepti$e! confusin, o# cont#a#0 to e8istin, la.s" )hen a chan,e in the co#po#ate
na+e is app#o$e(! the Co++ission shall issue an a+en(e( ce#ti9cate of
inco#po#ation un(e# the a+en(e( na+e"4 The polic0 un(e#l0in, the p#ohibition in
Section 16 a,ainst the #e,ist#ation of a co#po#ate na+e .hich is 4i(entical o#
(ecepti$el0 o# confusin,l0 si+ila#4 to that of an0 e8istin, co#po#ation o# .hich is
4patentl0 (ecepti$e4 o# 4patentl0 confusin,4 o# 4cont#a#0 to e8istin, la.s!4 is the
a$oi(ance of f#au( upon the public .hich .oul( ha$e occasion to (eal .ith the
entit0 conce#ne(! the e$asion of le,al obli,ations an( (uties! an( the #e(uction of
(i/culties of a(+inist#ation an( supe#$ision o$e# co#po#ations" He#ein! the Cou#t
(oes not consi(e# that the co#po#ate na+es of the aca(e+ic institutions a#e
4i(entical .ith! o# (ecepti$el0 o# confusin,l0 si+ila#4 to that of L0ceu+ of the
Philippines Inc"" T#ue enou,h! the co#po#ate na+es of the othe# schools >(efen(ant
institutions? entities all ca##0 the .o#( 4L0ceu+4 but confusion an( (eception a#e
e:ecti$el0 p#eclu(e( b0 the appen(in, of ,eo,#aphic na+es to the .o#( 4L0ceu+"4
Thus! the 4L0ceu+ of %pa##i4 cannot be +ista;en b0 the ,ene#al public fo# the
L0ceu+ of the Philippines! o# that the 4L0ceu+ of Ca+alaniu,an4 .oul( be confuse(
.ith the L0ceu+ of the Philippines" u#the#! et0+olo,icall0! the .o#( 4L0ceu+4 is the
Latin .o#( fo# the '#ee; l0;eion .hich in tu#n #efe##e( to a localit0 on the #i$e#
Ilissius in ancient %thens 4co+p#isin, an enclosu#e (e(icate( to %pollo an( a(o#ne(
.ith fountains an( buil(in,s e#ecte( b0 Pisist#atus! Pe#icles an( L0cu#,us f#e=uente(
b0 the 0outh fo# e8e#cise an( b0 the philosophe# %#istotle an( his follo.e#s fo#
teachin,"4 In ti+e! the .o#( 4L0ceu+4 beca+e associate( .ith schools an( othe#
institutions p#o$i(in, public lectu#es an( conce#ts an( public (iscussions" Thus
to(a0! the .o#( 4L0ceu+4 ,ene#all0 #efe#s to a school o# an institution of lea#nin,"
Since 4L0ceu+4 o# 4Liceo4 (enotes a school o# institution of lea#nin,! it is not
unnatu#al to use this .o#( to (esi,nate an entit0 .hich is o#,ani@e( an( ope#atin,
as an e(ucational institution" To (ete#+ine .hethe# a ,i$en co#po#ate na+e is
4i(entical4 o# 4confusin,l0 o# (ecepti$el0 si+ila#4 .ith anothe# entit0Es co#po#ate
na+e! it is not enou,h to asce#tain the p#esence of 4L0ceu+4 o# 4Liceo4 in both
na+es" One +ust e$aluate co#po#ate na+es in thei# enti#et0 an( .hen the na+e of
L0ceu+ of the Philippines is Gu8tapose( .ith the na+es of p#i$ate #espon(ents! the0
a#e not #easonabl0 #e,a#(e( as 4i(entical4 o# 4confusin,l0 o# (ecepti$el0 si+ila#4
.ith each othe#"
Issue [2]: )hethe# the use b0 the L0ceu+ of the Philippines of 4L0ceu+4 in its
co#po#ate na+e has been fo# such len,th of ti+e an( .ith such e8clusi$it0 as to
ha$e beco+e associate( o# i(enti9e( .ith the petitione# institution in the +in( of
the ,ene#al public >o# at least that po#tion of the ,ene#al public .hich has to (o .ith
schools?"
Held [2]: The nu+be# alone of the p#i$ate #espon(ents in the p#esent case su,,ests
st#on,l0 that the L0ceu+ of the PhilippinesE use of the .o#( 4L0ceu+4 has not been
atten(e( .ith the e8clusi$it0 essential fo# applicabilit0 of the (oct#ine of secon(a#0
+eanin," It +a0 be note( also that at least one of the p#i$ate #espon(ents! i"e"! the
)este#n Pan,asinan L0ceu+! Inc"! use( the te#+ 4L0ceu+4 1A 0ea#s befo#e L0ceu+
of the Philippines #e,iste#e( its o.n co#po#ate na+e .ith the SEC an( be,an usin,
the .o#( 4L0ceu+"4 It follo.s that if an0 institution ha( ac=ui#e( an e8clusi$e #i,ht
to the .o#( 4L0ceu+!4 that institution .oul( ha$e been the )este#n Pan,asinan
L0ceu+! Inc" #athe# than L0ceu+ of the Philippines" Hence! L0ceu+ of the Philippines
is not entitle( to a le,all0 enfo#ceable e8clusi$e #i,ht to use the .o#( 4L0ceu+4 in its
co#po#ate na+e an( that othe# institutions +a0 use 4L0ceu+4 as pa#t of thei#
co#po#ate na+es"