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Governor Joaquin Ortega

SEC Opinion • Securities and Exchange Commission • Opinions • Jul 16, 1991

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July 16, 1991 Governor Joaquin Ortega Tanggapan ng Sangguniang Panlalawigan San Fernando, La Union S i r : This refers to Resolution No. 326 contained in the excerpt from the minutes of the regular session of the Sangguniang Panlalawigan of La Union held on November 22, 1990, a copy of which was received by this Commission on December 14, 1990. LibLex Said resolution seeks to prohibit or disauthorize the use of the words "La Union" or "Provincial" as business trade names, including the use of the same in the transportation business. Certain words, terms or names are regarded in law as incapable of exclusive appropriation. Of this class are generic terms, geographical names and terms which are merely descriptive of the goods, services, places where made , the character of the business or the name of the maker. (6 Fletcher Sec. 2427, citing Columbia Mill Co. v. Alcorn 150 US 460, 37 L Ed. 1144, 14 SCt. 151 etc.) The general rule is that a corporation cannot acquire such a right in such names, words or terms as to have their use by others enjoined (General Industries Co. v. 20 Wacker Drive Building Corp. 156 F2d 474 revg. 57 F Sup. 583) unless such words have acquired a secondary meaning or have become distinctive so as to distinguish not only the producer of a particular service and its quality but also the name of the producer of that service. (Wyoming National Bank of Casper v. Security Bank & Trust Co. 572 P2d 1120 Wyo.) LexLib The word "La Union" is a geographical name, and "provincial" is merely descriptive. Hence, the use of these words may not be enjoined. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman

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