19. Lyceum of the Philippines, Inc vs Court of Appeals 219 Scra 610 1993

19. LYCEUM LYCEUM OF THE PHILIPPINES, INC., vs. COURT OF APPEALS, 219 SCRA 610 (1993) LYCEUM OF THE PHILIPPINES, INC., petitioner, vs. COURT OF APPEALS, LYCEUM OF APARRI, LYCEUM OF CABAGAN, LYCEUM OF CAMALANIUGAN, INC., LYCEUM OF LALLO, INC., LYCEUM OF TUAO, INC., BUHI LYCEUM, CENTRAL LYCEUM OF CATANDUANES, LYCEUM OF SOUTHERN PHILIPPINES, LYCEUM OF EASTERN MINDANAO, INC. n! "ESTERN PANGASINAN LYCEUM, INC., respon!ents. G.R. No. #$#%&'. Mr() *, #&&+. FELICIANO,  FACTS: •

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LPI is n e!-(tion instit-tion !-/ re0istere! 1it) SEC. ")en it 2rst re0istere! 1it) t)e SEC, it -se! t)e I+. n! )s -se! t)t n3e ever sin(e. (orporte n3e Ly!"# $% &'! P'**+!s, I+. n! LPI (o33en(e! in t)e SEC  pro(ee!in0 0inst L/(e-3 o4 B0-io, In(. to re5-ire it to ()n0e its (orporte n3e n! to !opt not)er n3e 6not si3ir to or i!enti( 1it)7 t)t o4 LPI. Asso(ite Co33issioner -io S-it )e! t)t t)e (orporte n3e o4 LPI n! LBI 1ere s-8stnti/ i!enti( 8e(-se o4 t)e presen(e o4  Ly!"# t)e n3e o4 t)e 0eo0rp)i( o(tion o4 t)e (3p-s 8ein0 t)e on/ 1or! 1)i() 9!o3innt9 1or! Ly!"# t)e !istin0-is)e! one 4ro3 t)e ot)er. T)e SEC so note! t)t LPI )! re0istere! s  (orportion )e! o4 LBI n! or!ere! t)e tter to ()n0e its n3e to not)er n3e 9not si3ir or i!enti( 1it)9 t)e n3es o4 previo-s/ re0istere! entities. LBI ssie! t)e SEC:s or!er 8e4ore t)e SC, 1)i() !enie! t)e s3e. Ar3e! 1it) si! SC reso-tion, LPI 1rote to  t)e e!-(tion e!-(tion instit-tions it (o-! 2n! -sin0 t)e 1or! 9L/(e-39 9L/(e-39 s prt o4 t)eir (orporte n3e, !visin0 t)e3 to !is(ontin-e s-() -se o4 9L/(e-39. LPI (i3e! proprietr/ ri0)t over t)e 1or! 6L/(e-37 n! instit-te! pro(ee!in0s 8e4ore t)e SEC to (o3pe Ly!"# $% A*-, Ly!"# $% C-/--+, Ly!"# $% C-#--+"-+, I+., Ly!"# $% L-$,I+., Ly!"# $% T"-$, I+., "' Ly!"#, C!+&- C!+&- Ly!"# $% C-&-+"-+!s, C-&-+"-+!s, Ly!"# $% S$"&'!+ S$"&'!+ P'**+! P'**+!s, s, Ly!"# y!"# $% E-s&! E-s&!+ + M+-+ M+-+-$, -$, I+., I+., -+ !s&! !s&!+ + P-+P-+-s+ s+-+ -+ Ly!"#, y!"#, I+., I+., so e!-(tion e!-(tion instit-tions, to !eete t)e 1or! 9L/(e-39 4ro3 t)eir (orporte n3es n! to per3nent/ en;oin t)e3 4ro3 -sin0 9L/(e-39 s prt o4 t)eir respe(tive n3es.  T)e SEC )erin0 o<(er r-e! in 4vor o4 LPI, re/in0 -pon t)e SEC:s r-in0 in t)e LBI (se n! )o!in0 t)t t)e 1or! 9L/(e-39 1s (p8e o4 pproprition, LPI )vin0 (5-ire! n en4or(e8e e=(-sive ri0)t to t)e -se o4  t)t 1or!. On ppe, t)e SEC En Bn( reverse! n! set si!e t)e )erin0 o<(er:s !e(ision, not (onsi!erin0 t)e 1or! 9L/(e-39 to )ve 8e(o3e so i!enti2e! 1it) LPI s to ren!er -se t)ereo4 8/ ot)er instit-tions s pro!-(tive o4  (on4-sion 8o-t t)e i!entit/ o4 t)e s()oos (on(erne! in t)e 3in! o4 t)e 0ener p-8i( n! )o!in0 t)t t)e tt()in0 o4 0eo0rp)i( n3es to t)e 1or! 9L/(e-39 serve! s-<(ient/ to !istin0-is) t)e s()oos 4ro3 one not)er.  T)e Co-rt o4 Appes 
ISSUES: >#? "ON t)e 1or! 6L/(e-37 (n 8e pproprite! 8/ LPI to t)e e=(-sion o4 ot)ers. 4NO >@? "ON t)e 1or! 6L/(e-37 )! (5-ire!  se(on!r/ 3enin0 in retion to LPI. 4NO RULIN5: >#? T)e Arti(es Arti(es o4 In(orporti In(orportion on o4  (orport (orportion ion 3-st set o-t t)e n3e o4 t)e (orportio (orportion. n. Se(tion #% o4 t)e Corportion Co!e est8is)es  restri(tive r-e inso4r s (orporte n3es re (on(erne! "SECTION 18. Corporate name. — No corporate name may be allowed by the Securities and Echan!e Commission i the proposed name is identical or decepti#ely or conusin!ly similar to that o any eistin! corporation or to any other name already protected by law or is patently  decepti#e$ conusin! or contrary to eistin! laws. %hen a chan!e in the corporate name is appro#ed appro#ed$$ The Commissi Commission on shall shall issue issue an amended amended certi&cat certi&cate e o incorpor incorporation ation under the amended name."  T)e poi(/ -n!er/in0 t)e pro)i8ition in Se(tion #% 0inst t)e re0istrtion o4  (orporte n3e 1)i() is 9i!enti( or !e(eptive/ or (on4-sin0/ si3ir9 to t)t o4 n/ e=istin0 (orportion or 1)i() is 9ptent/ !e(eptive9 or 9ptent/ (on4-sin09 (on4-sin09 or 9(ontrr/ to e=istin0 1s,9 is t)e voi!n(e o4 4r-! -pon t)e p-8i( 1)i() 1o-! )ve o((sion to !e 1it) t)e entit/ (on(erne!, t)e evsion o4 e0 o8i0tions n! !-ties, n! t)e re!-(tion o4 !i<(-ties o4 !3inistrtion

n! s-pervision over (orportions. T)e (orporte n3es o4 LA, et. . not re 9i!enti( 1it), or !e(eptive/ or (on4-sin0/ si3ir9 to t)t o4 LPI. T)e (orporte n3es o4 LA, et. .  (rr/ t)e 1or! 9L/(e-39, 8-t (on4-sion n! !e(eption re ee(tive/ pre(-!e! 8/ t)e ppen!in0 o4 0eo0rp)i( n3es to t)e 1or! 9L/(e-39. Et/3oo0i(/, t)e 1or! 9L/(e-39 is t)e Ltin 1or! 4or t)e Gree y!$+, 1)i() re4ers to  o(it/ on t)e river Iissi-s in n(ient At)ens 9(o3prisin0 n en(os-re !e!i(te! to Apoo n! !orne! 1it) 4o-ntins n! 8-i!in0s ere(te! 8/ Pisistrt-s, Peri(es n! L/(-r0-s 4re5-ente! 8/ t)e /o-t) 4or e=er(ise n! 8/ t)e p)iosop)er Aristote n! )is 4oo1ers 4or te()in0.9 In ti3e, t)e 1or! 9L/(e-39 8e(3e sso(ite! 1it) s()oos n! ot)er instit-tions provi!in0 p-8i( e(t-res n! (on(erts n! p-8i( !is(-ssions. To!/, t)e 1or! 9L/(e-39 0ener/ re4ers to  s()oo or n instit-tion o4 ernin0. 9L/(e-39 is in 4(t s !+! + '--&! -s &'! 7$ "+v!s&y.9 In t)e n3e o4 LPI, 9L/(e-39 ppers to 8e  s-8stit-te 4or 9-niversit/9. In ot)er p(es, 9L/(e-39, or 9Li(eo9, or 9L/(ee9, !enotes  se(on!r/ s()oo or  (oe0e. It 3/ 8e t)t t)e -se o4 t)e 1or! 9L/(e-39 3/ not /et 8e s 1i!espre! s t)e -se o4 9-niversit/,9 8-t it is (er t)t  not in(onsi!er8e n-38er o4 e!-(tion instit-tions )ve !opte! 9L/(e-39 or 9Li(eo9 s prt o4 t)eir (orporte n3es. Sin(e 9L/(e-39 or 9Li(eo9 !+$&!s - s'$$ $ +s&&"&$+ $% !-++, & s +$& "++-&"- &$ "s! &'s 7$ &$ !s+-&! -+ !+&&y 7'' s $-+8! -+ $*!-&+ -s -+ !"-&$+- +s&&"&$+.

>@? LPI (i3e! t)t t)e 1or! 9L/(e-39 )s (5-ire!  se(on!r/ 3enin0 in retion to it, )en(e, ppropri8e 8/ it to t)e e=(-sion o4 ot)er instit-tions. T)e $&+! $% s!$+-y #!-++ ori0inte! in t)e 2e! o4 tr!e3r 1. Its ppi(tion )s 8een e=ten!e! to (orporte n3es, sin(e t)e ri0)t to -se  (orporte n3e to t)e e=(-sion o4 ot)ers is 8se! -pon t)e s3e prin(ipe 1)i() -n!eries t)e ri0)t to -se  prti(-r tr!e3r or tr!e n3e. In P)iippine N-t In!-str/, In(. v. Stn!r! Brn!s, In(., t)e !o(trine o4 se(on!r/ 3enin0 1s e8orte! t)-s9 1or! or p)rse ori0in/ in(p8e o4 e=(-sive pproprition 1it) re4eren(e to n rti(e on t)e 3ret 8e(-se 0eo0rp)i(/ or ot)er1ise !es(riptive, 3i0)t nevert)eess )ve 8een -se! so on0 n! so e=(-sive/ 8/ one pro!-(er 1it) re4eren(e to )is rti(e t)t, in t)t tr!e n! to t)t 8rn() o4 t)e p-r()sin0 p-8i(, t)e 1or! or p)rse )s (o3e to 3en t)t t)e rti(e 1s )is pro!-(t. 9No evi!en(e 1s ever presente! in t)e )erin0 8e4ore t)e Co33ission 1)i() s-<(ient/ prove! t)t t)e 1or! L/(e-3 )s in!ee! (5-ire! se(on!r/ 3enin0 in 4vor o4 LPI. I4 t)ere 1s n/ o4 t)is in!, t)e s3e ten! to prove on/ t)t LPI )! 8een -sin0 t)e !isp-te! 1or! 4or  on0 perio! o4 ti3e. Nevert)eess, LPI:s e=(-sive -se o4 t)e 1or! 6L/(e-37 1s never est8is)e! or proven, s in 4(t t)e "PLI 1s re!/ -sin0 t)e 1or! 6L/(e-37 seventeen >#'? /ers prior to t)e !te LPI strte! -sin0 t)e s3e 1or! in its (orporte n3e. F-rt)er3ore, e!-(tion instit-tions o4 t)e Ro3n Ct)oi( C)-r() )! 8een -sin0 t)e s3e or si3ir 1or! >Li(eo !eMni, Li(eo !e Beno, Li(eo !e Ms8te, Li(eo !e A8/? on0 8e4ore LPI strte! -sin0 t)e 1or! L/(e-3. LPI so 4ie! to prove t)t t)e 1or! 6L/(e-37 )s 8e(o3e so i!enti2e! 1it) its e!-(tion instit-tion t)t (on4-sion 1i s-re/ rise in t)e 3in!s o4 t)e p-8i( i4 t)e s3e 1or! 1ere to 8e -se! 8/ ot)er e!-(tion instit-tions. ")ie LPI 3/ )ve prove! t)t it )! 8een -sin0 t)e 1or! 6L/(e-37 4or  on0 perio! o4 ti3e, t)is 4(t one !i! not 3o-nt to 3en t)t t)e si! 1or! )! (5-ire! se(on!r/ 3enin0 in its 4vor 8e(-se LPI 4ie! to prove t)t it )! 8een -sin0 t)e s3e 1or!  8/ itse4 to t)e e=(-sion o4 ot)ers. More so, t)ere 1s no evi!en(e presente! to prove t)t (on4-sion 1i s-re/ rise i4 t)e s3e 1or! 1ere to 8e -se! 8/ ot)er e!-(tion instit-tions. THUS: LPI s +$& !+&&! &$ - !-y !+%$!-/! !"sv! '& &$ "s! &'! 7$ Ly!"# + &s $*$-&! +-#! -+ $&'! +s&&"&$+s #-y "s! Ly!"# -s *-& $% &'! $*$-&! +-#!s.  To !eter3ine 1)et)er  0iven (orporte n3e is 9i!enti(9 or 9(on4-sin0/ or !e(eptive/ si3ir9 1it) not)er entit/s (orporte n3e, it is not eno-0) to s(ertin t)e presen(e o4 9L/(e-39 or 9Li(eo9 in 8ot) n3es. One 3-st !v-"-&! $*$-&! +-#!s + &'! !+&!&y n! 1)en t)e n3e o4 petitioner is ;-=tpose! 1it) t)e n3es o4 LA, et.., t)e/ re not reson8/ re0r!e! s 9i!enti(9 or 9(on4-sin0/ or !e(eptive/ si3ir9 1it) e() ot)er.