#16 Indian Chamber of Commerce Phils

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#16 INDIAN CHAMBER OF COMMERCE PHILS., INC., petitioner , vs.

FILIPINO INDIAN CHAMBER OF COMMERCE IN THE


PHILIPPINES, INC., respondent.

 Filipino-indian Chamber of Commerce of the Phils (FICCPI) was originally


registered with SEC as Indian Chamber of Commerce of Manila Inc. Its
corporate name was amended into Filipino-Indian Chamber of Commerce of
the Phils. Without applying for an extension of its corporate term, the term of
existence expired on No 24 2001
 On Jan 20 2005 Mansukhani reserve the corporate name Filipino Indian
Chamber of Commerce (FICCP) but was opposed by Sitaldas claiming a
representative of FICCPI, that the corporate name has been used since 1951
and that reservation by another person who is not its member or representative
is illegal
 CRMD ruled that FICCPI has no legal personality to oppose the reservation
and issued a certificate of Incorporation to FICC on Mar 14 2006
 On Dec 5 2005, Mr Pracash Dacayan reserve the name Indian Chamber of
Commerce Phils Inc (ICCPI) and was opposed by Mansukhani, a
representative of FICC because the name ICCPI deceptively or confusingly
similar to Filipino Indian Chamber of Commerce in the Phils (FICCP)
 ICCPI was incorporated only on Apr 5 2006 or a month after FICCPI
registered its corporate name
 ICCPI ague that it first incorporated and held the name FICCPI and it it
established the names goodwill until it failed to renew its name due to
oversight.
 The CRMD denied the petition of FICCP stating the ICCPI is not confusingly
similar to FICCP.
 SEC En banc reversed the decision and ICCPI was directed to change its
corporate name
 ICCPI appealed but was denied

ISSUE: WON corporate name of ICCPI and FICCPI is confusingly similar

SC RULING:
 Yes
 Sec 18 of the Corporation Code expressly prohibits the use of a corporate name
which is identical or deceptively or confusingly similar to that of existing
corporation.
 The court ruled that to fall within the prohibition, two requisites must be
proven:
1. That the complainant corporation acquired a prior right over the use of such
corporate name
2. The proposed name is either
a. Identical; or
b. Deceptively or confusingly similar to that of any existing corporation or
any other name already protected by law; or
c. Patently deceptive, confusing or contrary to existing law.
 FICCPI acquired prior right over the use of the corporate name. FICCPI was
incorporated on Mar 14 2006 while ICCPI was incorporated on Apr 5 2006 a
month after FICCPI registered its corporate name. The court held that FICCPI
which was incorporated earlier acquired a prior right over the use of corporate
name. ICCPI cannot argue that it first incorporated and held the name Filipino
Indian Chamber of Commerce in 1977 and that it established goodwill until it
failed to renew it name due to oversight. It is settled that a corporation is ipso
facto dissolved as soon as its term of existence expires. SEC memorandum
Circular No 14-2000 likewise provides the use of corporate names of dissolved
corporations. “The name of a dissolve firm shall not be allowed to be used by
other firms within 3 years after the approval of the dissolution of the
corporation by the commission unless allowed by the last stockholders
representing at least majority of the Outstanding capital stock of the dissolved
firm.
 When the term of existence of the defunct FICCPI expired on No 24 2001, its
corporate name cannot be used by other corporations within 3 yrs from that
date. FICCPI reserved the name Filipino Indian Chamber of Commerce in the
Phils Inc on Jan 20 2005 or beyond the 3 year period.
 On the 2nd requisite, ICCPI’s name is identical to that of FICCPI, they both
contain the same words Indian Chamber of Commerce. The argument of ICCPI
that the word Filipino in FICCPI’s corporate name makes it easily
distinguishable is without merit. It adds confusion and deception are effectively
precluded by appending the word Filipino to the phrase Indian Chamber of
Commerce. Those words do not effectively distinguish the corporate names.
Filipino, is merely a description, referring to a Filipino citizen or one living in
the Phils and can hardly serve as an effective differentiating medium necessary
to avoid confusion.

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