UNIVERSAL MILLS CORPORATION vs. UNIVERSAL TEXTILE MILLS, INC.

G.R. No. L-28351, July 28, 1977

Corporate Name

Facts: The Universal Textile Mills, Inc. was organized on December 29, 1953, as a textile manufacturing firm for which it was issued a certificate of registration on January 8, 1954. The Universal Mills Corporation, on the other hand, was registered on October 27, 1954, under its original name, Universal Hosiery Mills Corporation, having as its primary purpose the manufacture and production of hosieries and wearing apparel of all kinds. On May 24, 1963, it filed an amendment to its articles of incorporation changing its name to Universal Mills Corporation, which was approved on June 10, 1963.

Respondent filed a complaint against petitioner to change its name. Petitioner presented documentary and testimonial evidence in support of this allegation.

Issue: Whether petitioner’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 xx 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.

Since respondent is not claiming damages in this proceeding, it is, of course, immaterial whether or not appellant has acted in good faith, but We cannot perceive why of all names, it had to choose a name already being used by another firm engaged in practically the same business for more than a decade enjoying well earned patronage and goodwill, when there are so many other appropriate names it could possibly adopt without arousing any suspicion as to its motive and, more importantly, any degree of confusion in the mind of the public which could mislead even its own customers, existing or prospective.