WESTERN EQUIPEMENT AND SUPPLY CO v. FIDEL REYES, HENRY HERMAN etcDecember 2, 1927EN BANC; Johns, J.Digest by: Cate AlegreChapter 1! F"re#$% C"rp"rat#"%&S'((ar)Electric !""ly Co., a #omestic cor"oration, initially $as a #istrib!tor o% &estern Electric Co. "ro#!cts. 'he latter is a%oreign cor"oration not license# to #o b!siness in the (hili""ines. )ater on, the (resi#ent o% Electric !""ly Co. $ante#to incor"orate as *&estern Electric !""ly Co. +nc., to man!%act!re an# #eal the same "ro#!cts. C r!le# that the"!r"ose o% incor"oration $as illegal an# -oi#. 'he $hole "!r"ose an# intent o% .erman an# his associates in see/ingto incor"orate anothercor"oration!n#er the i#enticalname o% &estern Electric Com"any, +nc., an# %orthe samei#entical "!r"ose as that o% the "lainti0, is to tres"ass !"on an# "ro1t by its goo# name an# b!siness re"!tation. Fact&! Ma) *, 1+,- 2 &estern E3!i"ment an# !""ly Com"any 4&estern E3!i"ment5 a""lie# to the Director o% B!rea!o% Commerce an# +n#!stry %or the iss!ance o% a license to engage in b!siness in the (hili""ines. o 'his $as iss!e# "ro-isionally on 6ay 27, 1928 an# ma#e "ermanent on A!g!st 29, 1928 &estern Electric Com"any +nc. 4&estern Electric5 has ne-er been license# to engage in b!siness in the (hili""ine+slan#s an# has ne-er engage# in b!siness thereino 'he $or#s *&estern Electric, ha-e been registere# by the com"any as a tra#emar/ !n#er the "ro-isions o%the Act o% Congress o% 27 :ebr!ary 197; an# sai# tra#emar/ remains in %orce &esternE3!i"ment, sincetheiss!anceo% itslicense, engage#intheim"ortationan#saleo% electrican#tele"hone a""arat!s an# s!""lies man!%act!re# by &estern Electric an# other %actoriesElectric!""lyCom"any+nc.,a#omestic cor"oration4$here.enry.ermanis the(resi#ent an#N 'C erre# in r!ling that the "!r"ose o% incor"oration is illegal an# -oi# ? NOD#&p"t#ve! 'he @!#gment o% the lo$er co!rt is aArme#, $ith costs. o or#ere#.Rat#"! &esternElectric, altho!ghhasne-er engage#inb!sinessinthe(hili""ineshas aright o% actionagainst#e%en#ants. 'he sole "!r"ose o% the action is to "rotect its re"!tation, its cor"orate name, its goo#$ill, $hene-erthat re"!tation, cor"oratenameorgoo#$ill ha-e, thro!ghthenat!ral #e-elo"ment o% itstra#e, establishe#themsel-eso A tra#e?mar/ ac/no$le#ges no territorial bo!n#aries o% m!nici"alities or states or nations, b!t eBten#s toe-ery mar/et $here the tra#erCs goo#s ha-e become /no$n an# i#enti1e# by the !se o% the mar/. o Dights to the !se o% its cor"orate an# tra#e name is a "ro"erty right, a right in rem, $hich it may assert an#"rotect against all the$orl#, inanyo% theco!rtso% the$orl#Ee-enin@!ris#ictions$hereit#oesnottransact b!sinessE@!st the same as it may "rotect its tangible "ro"erty, real or "ersonal, against tres"ass, orcon-ersion. +t is -ery a""arent that the "!r"ose an# intent o% .erman an# his associates in see/ing to incor"orate !n#er thename o% &estern Electric Com"any, +nc., $as to !n%airly an# !n@!stly com"ete in the (hili""ine +slan#s $ith the&estern Electric Com"any, +nc., in articles $hich are man!%act!re# by, an# bear the name o%, that com"any, all o%$hich is "rohibite# by Act No. 888o .erman an# his associates, are act!ally as/ing the