Western Equipment v Reyes

WESTERN EQUIPEMENT AND SUPPLY CO v. FIDEL REYES, HENRY HERMAN etc December 2, 1927 EN BANC; Johns, J. Digest by: Cate Alegre Chapter 18: Foreign Corporations Summary Electric Supply Co., a domestic corporation, initially was a distributor of Western Electric Co. products. The latter is a foreign corporation not licensed to do business in the Philippines. Later on, the President of Electric Supply Co. wanted to incorporate as “Western Electric Supply Co. Inc.” to manufacture and deal the same products. SC ruled that the purpose of incorporation was illegal and void. The whole purpose and intent of Herman and his associates in seeking to incorporate another corporation under the identical name of Western Electric Company, Inc., and for the same identical purpose as that of the plaintiff, is to trespass upon and profit by its good name and business reputation. Facts: May 4, 1925 – Western Equipment and Supply Compan y (Western Equipment) applied to the Director of Bureau of Commerce and Industry for the issuance of a license to engage in business in the Philippines. o This was issued provisionally on May 20, 1926 and made permanent on August 23, 1926 Western Electric Company Inc. (Western Electric) has never been licensed to engage in business in the Philippine Islands and has never engaged in business therein o The words “Western Electric” have been registered by the company as a trademark under the provisions of the Act of Congress of 20 February 1905 and said trademark remains in force Western Equipment, since the issuance of its license, engaged in the importation and sale of electric and telephone apparatus and supplies manufactured by Western Electric and other factories Electric Supply Company Inc., a domestic corporation (where Henry Herman is the President and General Manager), has been importing the same products into the Philippines for the purpose of selling the same 1926 – Herman, along with other persons, sought to organize a corporation to be known as Western Electric Co. Inc. for the purpose, among other things, of manufacturing, buying, selling and dealing generally in electrical and telephone apparatus and supplies. Western Equipment et al. filed against Herman to prevent them from organizing said corporation TC ruled in favor of Western Equipment, holding that the purpose of the incorporation of the proposed corporation is illegal and void Issue: WON TC erred in ruling that the purpose of incorporation is illegal and void - NO Dispositive: The judgment of the lower court is affirmed, with costs. So ordered. Ratio: Western Electric, although has never engaged in business in the Philippines has a right of action against defendants. The sole purpose of the action is to protect its reputation, its corporate name, its goodwill, whenever that reputation, corporate name or goodwill have, through the natural development of its trade, established themselves o A trade-mark acknowledges no territorial boundaries of municipalities or states or nations, but extends to every market where the trader’s goods have become known and identified by the use of the mark. o Rights to the use of its corporate and trade name is a property right, a right in rem, which it may assert and protect against all the world, in any of the courts of the world— even in jurisdictions where it does not transact business—just the same as it may protect its tangible property, real or personal, against trespass, or conversion. It is very apparent that the purpose and intent of Herman and his associates in seeking to incorporate under the name of Western Electric Company, Inc., was to unfairly and unjustly compete in the Philippine Islands with the Western Electric Company, Inc., in articles which are manufactured by, and bear the name of, that company, all of which is prohibited by Act No. 666

Upload
cocoy-licaros
Category

Documents
view
295
download
16

Embed Size (px):

description

Transcript of Western Equipment v Reyes

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