Gabriel v. Perez
[GR L-24075, Jan. 31, 1974]

It was not denied in this case that the Respondent is the originator and manufacturer of the so-called 'Dr. Perez Wonder Beauty Soap,' a phrase clearly coined by, and associated with, the Respondent. As such, the connotation in itself is sufficient to clothe the product as an item or a commodity emanating from a particularly identified source who is none other than Dr. Jose R. Perez. The words serve as an indication of origin, and the product identified by the words can never be regarded as having emanated or originated from another individual, typical of which is the Petitioner, a mere distributor. Under Sections 2 and 2-A of the Trademark Law, Republic Act No. 166, as amended, the right to register trademark is based on ownership and a mere distributor of a product bearing a trademark, even if permitted to use said trademark, has no right to and cannot register the said trademark. There is nothing in the statute which remotely suggests that one who merely sells a manufacturer's goods bearing the manufacturer's mark acquires any rights in the mark; nor is there anything in the statute which suggests that such a person may register a mark which his supplier has adopted and used to identify his goods.

An exclusive distributor does not acquire any proprietary interest in the principal's trademark. In the absence of any inequitable conduct on the part of the manufacturer, an exclusive distributor, who employs the trademark of the manufacturer does not acquire proprietary interest in the mark which will extinguish the rights of the manufacturer, and a registration of the trademark by the distributor as such belongs to the manufacturer, provided the fiduciary relationship does not terminate before application for registration is filed.