Saturday, December 1, 2012

CASE DIGEST: Universal Mills Corporation vs. Universal Textile Mills

78 SCRA 62 (1977) 

FACTS:

This is an appeal from the order of the Securities and Exchange Commission granting a petition by the respondent to have the petitioner’s corporate name be changed as it is “confusingly and deceptively similar” to that of the former.

On January 8, 1954, respondent Universal Textile Mills was issued a certificate of Corporation as a textile manufacturing firm. On the other hand, petitioner, which deals in the production of hosieries and apparels, acquired its current name by amending its articles of incorporation, changing its name from Universal Hosiery mills Corporation to Universal Mills corporation.

ISSUE:

Whether or not petioner’s trade name is confusingly similar with that of respondent’s.

HELD:

Yes. The corporate names in question are not identical, but they are indisputably so similar that even under the test of reasonable care and observation as the public generally are capable of using and may be expected to exercise” invoked by appellant. We are apprehensive confusion will usually arise, considering that x x x appellant included among its primary purposes the manufacturing, dyeing, finishing and selling of fabrics of all kinds” which respondent had been engaged for more than a decade ahead of petitioner.

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