Who can use the Lido name? SC cancels ‘Lido Cocina Tsina’ trademark

Sam Calleja/Rappler

Years after the falling out between old partners, the Supreme Court says the trademark still belongs to the partnership they left behind

AT A GLANCE

• The Supreme Court of the Philippines ruled that the trademark registrations for 'Lido' held by Panciteria Lido Chinese Cuisine Co. were canceled due to bad faith registration, affirming that the rights belong to Eng Son Co.
• The dispute arose from a split between former partners Alipio and the King family, leading to the creation of two separate Lido-branded restaurants and subsequent trademark conflicts.
• The ruling clarified that while the King heirs have a legal interest to challenge the registrations, they do not automatically own the Lido trademark, which remains a partnership property until its affairs are resolved.

This is AI-generated. Read the article for full context. Report any errors.

MANILA, Philippines – Just as Lido, a household name in Chinese dining, marks its 90th year, the Supreme Court settled a decades-long dispute over who owns the restaurant’s name.

The SC canceled two Lido trademark registrations held by Panciteria Lido Chinese Cuisine Co., including one for “Lido Cocina Tsina,” after finding that the company registered the marks in bad faith.

“Through Alipio, respondent knew that the right to register the Lido mark belonged to Eng Son Co., yet it caused the registration of the subject marks in its own name,” read part of the SC ruling.

But the SC did not award the Lido name to the King family, whose heirs brought the case. It instead upheld the earlier finding that “the right to register the trademark ‘Panciteria Lido’ is vested to the partnership” Eng Son Co., with no proof that the partnership had been wound up or that the marks had been transferred elsewhere.

When one Lido became two

Lido traces its roots to 1936. King and Alipio later formed Eng Son Co. in 1997 to operate Lido Restaurant.

The two were once close business partners, but their relationship eventually soured. The falling out also divided the restaurant business, with some franchisees going with Alipio and others with the King family. The Alipio side eventually became Lido Cocina Tsina, while the King side operated as Salido.

The trademark fight soon followed.

Alipio applied in 2008 to register Panciteria Lido in her own name. King opposed the application, and the Intellectual Property Office ruled in 2010 that the right to the mark belonged to Eng Son Co.

King died that same year. His death dissolved the partnership, but under the Civil Code, dissolution did not terminate it. The partnership continued to exist until its affairs were wound up.

Alipio later formed PLCCC with other partners, and the new partnership obtained two Lido trademark registrations in 2012. King’s sons Albert and Arthur eventually challenged them.

Who owns the name now?

The SC sided with the King heirs and ordered the registrations canceled, but it made clear that winning the case did not make them owners of Lido.

“While such hereditary interest did not automatically vest in petitioners ownership over specific partnership assets prior to liquidation, it nevertheless gave them a sufficient legal interest” to challenge the registrations, the High Tribunal said.

The SC found no evidence that Eng Son Co. had ever been liquidated, that its affairs had been wound up, or that ownership of the Lido marks had been lawfully transferred elsewhere.

That leaves the Lido trademark in the unusual position of remaining a partnership property even though the business relationship behind that partnership fell apart years ago.

The ruling does not order either Lido Cocina Tsina or Salido to close. It also does not resolve who may ultimately use, license, or assign the Lido name once the old partnership’s affairs are finally settled. – Rappler.com