ipl orig cases (1)

7/26/2019 IPL Orig Cases (1)

http://slidepdf.com/reader/full/ipl-orig-cases-1 1/268

[G.R. No. 166337. March 7, 2005]

BAYANIHAN MUSIC vs. BMG

THIRD DI ISI!N

Gentlemen:

Quoted hereunder, for your information, is a resolution of this Courtdated MAR 7 2005.

G.R. No. 166337 ( Bayanihan Music Philippines, Inc. vs. BMG Records(Pilipinas) and Jose Mari Chan, et al. )

Su !e"t of this #etition for re$ie% on certiorari is the D"c#$#o% &a'"&D"c"()"r 1*, 200* [1] of the Court of &##eals in CA+G.R. S No. 6-626 ,

u#holdin' the rder dated &u'ust *, ++1 of the Re'ional rial Court atQue-on City, ran"h /+, %hi"h found no merit in #etitioner0s a##li"ation forthe issuan"e of a %rit of #reliminary in!un"tion, alon' %ith the rder dated

anuary 1+, ++ , %hi"h denied #etitioner0s motion for re"onsideration.

n uly 16, 1/73, #ri$ate res#ondent ose 2ari Chan ( Cha%) entered into a"ontra"t %ith #etitioner ayanihan 2usi" hili##ines, 4n". ( Ba a%#ha%),%hereunder the former assi'ned to the latter all his ri'hts, interests and#arti"i#ation o$er his musi"al "om#osition 5 Can We Just Stop and al! "While 5. n 2ar"h 11, 1/76, the #arties entered into a similar "ontra"t o$erChan0s other musi"al "om#osition entitled 5 "#raid $or %ove o $ade 5.

n the stren'th of the a o$ementioned "ontra"ts, ayanihan a##lied for and%as 'ranted y the National i rary a Certi "ate of Co#yri'ht Re'istration forea"h of the t%o musi"al "om#ositions, thus: No$em er 1/, 1/73, for theson' 5 Can We Just Stop and al! " While 5 and on 2ay 1, 1/8+, for the son'5 "#raid #or %ove o $ade .5

&##arently, %ithout the 9no%led'e and "onsent of #etitioner ayanihan,Chan authori-ed his "o res#ondent 2G Re"ords ( ili#inas) ; 2G< to re"ordand distri ute the aforementioned musi"al "om#ositions in a then re"entlyreleased al um of sin'er ea Salon'a.

4n se#arate letters oth dated =e"em er 7, 1///, #etitioner ayanihaninformed res#ondents Chan and 2G of its e>istin' "o#yri'hts o$er thesu !e"t musi"al "om#ositions and the alle'ed $iolation of su"h ri'ht y thet%o. =emands %ere made on oth to settle the matter %ith ayanihan.?o%e$er no settlement %as rea"hed y the #arties.

http://www.chanrobles.com/scresolutions/resolutions/2005/march/166337.php#_ftn1




?en"e, on &u'ust 8, +++, ayanihan led %ith the Re'ional rial Court atQue-on City a "om#laint a'ainst Chan and 2G for $iolation of Se"tion 16of Re#u li" &"t No. 8 /3, other%ise 9no%n as the Intellectual Property Codeo# the Philippines , %ith a #rayer for the issuan"e of em#orary Restrainin'

rder ( R ) and@or %rit of #reliminary in!un"tion, en!oinin' res#ondent 2G

from further re"ordin' and distri utin' the su !e"t musi"al "om#ositions in%hate$er form of musi"al #rodu"ts, and Chan from further 'rantin' anyauthority to re"ord and distri ute the same musi"al "om#ositions.

4n its ans%er, 2G "ontended, amon' others, that: (1) the a"ts of re"ordin'and #u li"ation sou'ht to e en!oined had already een "onsummated,there y renderin' moot ayanihan0s #rayer for R and@or #reliminaryin!un"tionA and ( ) there is no "lear sho%in' that #etitioner ayanihan %ould

e 'reatly dama'ed y the refusal of the #rayed for R and@or #reliminaryin!un"tion. 2G also #leaded a "ross "laim a'ainst its "o res#ondent Chanfor violation o# his &arranty that his musi"al "om#ositions are free from

"laims of third #ersons, and a "ounter"laim for dama'es a'ainst #etitionerayanihan.

Chan, for his #art, led his o%n ans%er to the "om#laint, thereunder alle'in'that: (1) it %as ne$er his intention to di$est himself of all his ri'hts andinterest o$er the musi"al "om#ositions in BuestionA ( ) the "ontra"ts heentered into %ith ayanihan are mere musi" #u li"ation a'reements 'i$in'

ayanihan, as assi'nee, the #o%er to administer his "o#yri'ht o$er his t%oson's and to a"t as the e>"lusi$e #u lisher thereofA (3) he %as not "o'ni-antof the a##li"ation made y and the su seBuent 'rant of "o#yri'hts to

ayanihanA and (*) ayanihan %as remissed in its o li'ations under the

"ontra"ts e"ause it failed to e e"ti$ely ad$ertise his musi"al "om#ositionsfor almost t%enty ( +) years, hen"e, he "aused the rescission of said"ontra"ts in 1//7. Chan also in"luded in his ans%er a "ounter"laim fordama'es a'ainst ayanihan.

&fter hearin' the #arties, the lo%er "ourt "ame out %ith an order denyin'ayanihan0s #rayer for R , sayin', thus:

&fter "arefully "onsiderin' the ar'uments and e$aluatin' the e$iden"e#resented y "ounsels, this Court nds that the #lainti has not een a le tosho% its entitlement to the relief of R as #rayed for in its $eri ed"om#laint (see Section ', Rule o# the *++ Rules o# Civil Procedure, asa-ended ), hen"e, this Court is of the "onsidered and hum le $ie% that theends of !usti"e shall e ser$ed etter if the afore"ited a##li"ation is denied.

4N D4EF ?E REG 4NG, the afore"ited a##li"ation or #rayer for theissuan"e of a R is denied.

S R=ERE=.



hereafter, the same "ourt, in its su seBuent !r&"r &a'"& A/ /$'2*, 2001 ,[2] "rala% li9e%ise denied ayanihan0s #rayer for a %rit of#reliminary in!un"tion, to %it:

&fter "arefully 'oin' o$er the #leadin's and the #ertinent #ortions of the

re"ords insofar as they are #ertinent to the issue under "onsideration, thisCourt nds that the #lainti has not een a le to sho% its entitlement to therelief of #reliminary in!un"tion as #rayed for in its $eri ed "om#laint(see Section ', Rule o# the *++ Rules o# Civil Procedure, as a-ended ),hen"e, this Court is of the "onsidered and hum le $ie% that the ends of

!usti"e shall e ser$ed etter if the afore"ited a##li"ation is denied, (seealso rder dated uly 16, ++1).

4N D4EF ?E REG 4NG, the a##li"ation or #rayer for the issuan"e of a%rit of #reliminary in!un"tion is denied.

S R=ERE=.4ts motion for a re"onsideration of the same order ha$in' een li9e%isedenied y the trial "ourt in its ne>t !r&"r o a%/ar 10, 2002 ,[3] "rala% #etitioner ayanihan then %ent to the Court of &##eals on a #etitionfor certiorari , thereat do"9eted as CA+G.R. S No. 6-626 , im#utin' 'ra$ea use of dis"retion on the #art of the trial "ourt in issuin' the rders of&u'ust *, ++1 and anuary 1+, ++1, denyin' its #rayers for a %rit of#reliminary in!un"tion and motion for re"onsideration, res#e"ti$ely.

4n the herein assailed D"c#$#o% &a'"& D"c"()"r 1*, 200*, the Court of

&##eals u#held the "hallen'ed orders of the trial "ourt and a""ordin'lydismissed ayanihan #etition, thus:

F?ERE RE, ndin' neither Ha% of !urisdi"tion nor taint of 'ra$e a use ofdis"retion in the issuan"e of the assailed rders of the res#ondent "ourtdated &u'ust *, ++1 and anuary 1+, ++ , the instant #etition is=4S24SSE=. No "osts.

S R=ERE=. [*] "rala%

?en"e, ayanihan0s #resent re"ourse.

4t is #etitioner0s su mission that the a##ellate "ourt "ommitted re$ersi leerror %hen it dismissed its #etition for certiorari and u#held the trial "ourt0sdenial of its a##li"ation for a %rit of #reliminary in!un"tion. etitioner insiststhat as assi'nee of the "o#yri'hts o$er the musi"al "om#ositions in Buestion,it has a "lear le'al ri'ht to a %rit of #reliminary in!un"tionA that res#ondents

2G and Chan $iolated its "o#yri'hts o$er the same musi"al "om#ositionsAthat des#ite 9no%led'e y res#ondent 2G of #etitioner0s "o#yri'hts o$er









the said musi"al "om#ositions, 2G "ontinues to re"ord and distri ute thesame, to #etitioner0s 'reat and irre#ara le in!ury.

Fe =ENI.

Fe ha$e "onstantly reminded "ourts that there is no #o%er, the e>er"ise of%hi"h is more deli"ate and reBuires 'reater "aution, deli eration and sounddis"retion, or %hi"h is more dan'erous in a dou tful "ase, than the issuan"eof an in!un"tion. & "ourt should, as mu"h as #ossi le, a$oid issuin' the %rit%hi"h %ould e e"ti$ely dis#ose of the main "ase %ithout trial.

?ere, nothin' is more e$ident than the trial "ourt0s a idin' a%areness of thee>tremely diJ"ult alan"in' a"t it had to #erform in dealin' %ith #etitioner0s#rayer for in!un"ti$e reliefs. Cons"ious, as e$idently it is, of the fa"t thatthere is manifest a use of dis"retion in the issuan"e of an in!un"ti$e %rit ifthe follo%in' reBuisites #ro$ided for y la% are not #resent: (1) there must

e a ri'ht in esse or the e>isten"e of a ri'ht to e #rote"tedA and ( ) the a"ta'ainst %hi"h the in!un"tion is to e dire"ted is a $iolation of su"h ri'ht,[5] "rala% the trial "ourt threaded the "orre"t #ath in denyin' #etitioner0s#rayer therefor. or, su"h a %rit should only e 'ranted if a #arty is "learlyentitled thereto. [6] "rala%

f "ourse, %hile a "lear sho%in' of the ri'ht to an in!un"ti$e %rit is ne"essaryal eit its e>isten"e need not e "on"lusi$ely esta lished, [7] "rala% as thee$iden"e reBuired therefor need not e "on"lusi$e or "om#lete, still, for ana##li"ant, li9e #etitioner ayanihan, to e entitled to the %rit, he is reBuiredto sho% that he has the ostensi le ri'ht to the nal relief #rayed for in its

"om#laint.[ ]

"rala%

?ere, the trial "ourt did not nd am#le !usti "ations forthe issuan"e of the %rit #rayed for y #etitioner.

KnBuestiona ly, res#ondent Chan, ein' undenia ly the "om#oser andauthor of the lyri"s of the t%o ( ) son's, is #rote"ted y the mere fa"t alonethat he is the "reator thereof, "onforma ly %ith Re#u li" &"t No. 8 /3,other%ise 9no%n as the Intellectual Property Code , Se"tion 17 . of %hi"hreads:

* . . For9s are #rote"ted y the sole fa"t of their "reation, irres#e"ti$e oftheir mode or form of e>#ression, as %ell as of their "ontent, Buality and#ur#ose.

&n e>amination of #etitioner0s $eri ed "om#laint in li'ht of the t%o ( )"ontra"ts sued u#on and the e$iden"e it addu"ed durin' the hearin' on thea##li"ation for #reliminary in!un"tion, yields not the e>isten"e of the reBuisiteri'ht #rote"ta le y the #ro$isional relief ut rather a lin'erin' dou t on%hether there is or there is no su"h ri'ht. he t%o "ontra"ts et%een











#etitioner and Chan relati$e to the musi"al "om#ositions su !e"t of the suit"ontain the follo%in' identi"al sti#ulations:

7. 4t is also here y a'reed to y the #arties herein that in the e$ent theK 4S?ER ;#etitioner herein< fails to use in any manner %hatsoe$er %ithin

t%o ( ) years any of the "om#ositions "o$ered y this "ontra"t, then su"h"om#osition may e released in fa$or of the FR4 ER and e>"luded from this"ontra"t and the K 4S?ER shall e>e"ute the ne"essary release in %ritin' infa$or of the FR4 ER u#on reBuest of the FR4 ERA

>>> >>> >>>

/. his "ontra"t may e rene%ed for a #eriod of t%o and one half ( 1@ )years at the o#tion of the K 4S?ER. Rene%al may e made y the

K 4S?ER y ad$isin' the FR4 ER of su"h rene%al in %ritin' at least $e (L)days efore the e>#iration of this "ontra"t. [-] "rala%

4t %ould thus a##ear that the t%o ( ) "ontra"ts e>#ired on !c'o)"r 1,1-75 and March 11, 1-7 , res#e"ti$ely, there ein' neither an alle'ation,mu"h less #roof, that #etitioner ayanihan e$er made use of the"om#ositions %ithin the t%o year #eriod a'reed u#on y the #arties.

&nent the "o#yri'hts o tained y #etitioner on the asis of the selfsame t%o( ) "ontra"ts, suJ"e it to say 0that su"h #ur#orted "o#yri'hts are not#resumed to su sist in a""ordan"e %ith Se"tion 18;a< and ; <, ofthe I%'"44"c'/a4 ro "r' Co&" ,[10] "rala% e"ause res#ondent Chan had#ut in issue the e>isten"e thereof.

4t is noted that Chan re$o9ed and terminated said "ontra"ts, alon' %ithothers, on uly 3+, 1//7, or almost t%o years efore #etitioner ayanihan%rote its sort of "om#laint@demand letter dated =e"em er 7, 1/// re'ardin'the re"ent 5use@re"ordin' of the son's 0 Can We Just Stop and al! " While 0and 0 "#raid #or %ove to $ade ,05 or almost three (3) years efore #etitioner ledits "om#laint on &u'ust 8, +++, therein #rayin', inter alia , for in!un"ti$erelief. y then, it %ould a##ear that #etitioner had no more ri'ht that is#rote"ta le y in!un"tion.

astly, #etitioner0s insinuation that the trial "ourt indul'ed in 'enerali-ationsand %as rather s9im#y in dishin' out its reasons for denyin' its #rayer for#ro$isional in!un"ti$e relief, the same deser$es s"ant "onsideration. or sure,the manner y %hi"h the trial "ourt "rafted its "hallen'ed orders is Buiteunderstanda le, lest it e su !e"ted to a #lausi le sus#i"ion of ha$in'#re!ud'ed the merits of the main "ase.

H R 8!R , #etition is here y =EN4E=.







S R=ERE=.

Dery truly yours,

(S'd.) 9UCITA AB 9INA+S!RIAN!

Cler! o# Court

UNI9 R HI9I IN S G.R. No. 11/ 8+: RC;, INC.,

"'#'#o%"r, resent:

KN , J., Chairperson ,S&N= D& GK 4ERREM,+ < " r $ / $ + C R N&,&MCKN& and G&RC4&, JJ.

TH H!N!RAB9 C!URT!8 A A9S a%& R!CT RAND GAMB9 HI9I IN S,INC.,R"$ o%&"%'$. romul'ated:

&u'ust 1+, ++6

= + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + =

D C I S I ! N

C!R!NA, J. >

4n this #etition for re$ie% under Rule *L of the Rules of Court, #etitioner

assails the e ruary *, 1//L de"ision ;1< of the Court of &##eals (C&) in C&

G.R. S No. 3L * entitled /nilever Philippines (PRC), Inc. v. 0onora1le

$ernando 2. Gorospe, Jr. and Procter and Ga-1le Philippines, Inc.

(P3GP) %hi"h aJrmed the issuan"e y the "ourt a 4uo of a %rit of #reliminary

in!un"tion a'ainst it. he %rit en!oined #etitioner from usin' and airin', until

further orders of the "ourt, "ertain tele$ision "ommer"ials for its laundry

http://sc.judiciary.gov.ph/jurisprudence/2006/august2006/G.R.%20No.%20119280.htm#_ftn1






#rodu"ts "laimed to e identi"al or similar to its dou le tu' or ta" ta" 9ey

$isual. ; <

etitioner alle'es that the %rit of #reliminary in!un"tion %as issued ythe trial "ourt (and aJrmed y the C&) %ithout any e$iden"e of #ri$ate

res#ondents "lear and unmista9a le ri'ht to the %rit. etitioner further

"ontends that the #reliminary in!un"tion issued a'ainst it already dis#osed of

the main "ase %ithout trial, thus denyin' #etitioner of any o##ortunity to

#resent e$iden"e on its ehalf.

he ante"edents sho% that on &u'ust *, 1//*, #ri$ate res#ondent ro"ter

and Gam le hils., 4n". led a "om#laint for in!un"tion %ith dama'es and a

#rayer for tem#orary restrainin' order and@or %rit of #reliminary in!un"tion

a'ainst #etitioner Knile$er, alle'in' that:

1.L. &s early as 1/8 , a OG su sidiary in 4taly used a 9ey$isual in the ad$ertisement of its laundry deter'ent and

lea"hin' #rodu"ts. his 9ey $isual 9no%n as the dou letu' or ta" ta" demonstration sho%s the fa ri" ein' held

y oth hands and stret"hed side%ays. 1.6. he ta" ta" %as "on"e#tuali-ed for OG y the

ad$ertisin' a'en"y 2ilano and Gray of 4taly in1/8 . he ta" ta" %as used in the same year in anad$ertisement entitled &ll a#erto to demonstrate the e e"ton fa ri"s of one of OG s #rodu"ts, a liBuid lea"h "alled&"e.

> > > > > > > > >

1.7. Sin"e then, OG has used the ta" ta" 9ey $isual in thead$ertisement of its #rodu"ts. 4n fa"t, in 1/86, in 4taly,the ta" ta" 9ey $isual %as used in the tele$ision"ommer"ial for &"e entitled Pite.

1.8. OG has used the same distin"ti$e ta" ta" 9ey $isual

to lo"al "onsumers in the hili##ines.





> > > > > > > > >

1.1+. Su stantially and materially imitatin' the aforesaid ta"

ta" 9ey $isual of OG and in latant disre'ard

of OG s intelle"tual #ro#erty ri'hts, Knile$er on * uly1//3 started airin' a 6+ se"ond tele$ision "ommer"ial DCof its ree-e o%er%hite laundry #rodu"t "alled or9y. hesaid DC in"luded a stret"hin' $isual #resentation andsound e e"ts almost ;identi"al< or su stantially similarto OG s ta" ta" 9ey $isual.

> > > > > > > > >

1.1*. n uly 1L, 1//*, OG aired in the hili##ines, the

same Pite tele$ision ad$ertisement it used in 4taly in 1/86,

merely du in' the 4talian lan'ua'e %ith ili#ino for thesame #rodu"e &"e lea"hin' liBuid %hi"h P3GP no%mar9ets in the hili##ines.

1.1L. n &u'ust 1, 1//*, Knile$er led a Com#laint %ith the

&d$ertisin' oard of the hili##ines to #re$ent OG fromairin' the Pite tele$ision ad$ertisement. ;3<

n &u'ust 6, 1//*, ud'e Goros#e issued an order 'rantin' a

tem#orary restrainin' order and settin' it for hearin' on Se#tem er , 1//*for Knile$er to sho% "ause %hy the %rit of #reliminary in!un"tion should not

issue. =urin' the hearin' on Se#tem er , 1//*, OG re"ei$ed Knile$ers

ans%er %ith o##osition to #reliminary in!un"tion. OG led its re#ly to

Knile$ers o##osition to a #reliminary in!un"tion on Se#tem er 6, 1//*.

=urin' the hearin' on Se#tem er /, 1//*, ud'e Goros#e ordered

#etitioner to su mit a sur re!oinder. OG re"ei$ed Knile$ers re!oinder to

re#ly on Se#tem er 13, 1//*. he follo%in' day, on Se#tem er 1*, 1//*,

OG led its sur re#ly to Knile$ers re!oinder.





n Se#tem er 1/, 1//*, OG re"ei$ed a "o#y of the order dated

Se#tem er 16, 1//* orderin' the issuan"e of a %rit of #reliminary in!un"tion

and >in' a ond of 1++,+++. n the same date, OG led the reBuired

ond issued y rudential Guarantee and &ssuran"e, 4n".

n Se#tem er 1, 1//*, #etitioner a##ealed to the C& assi'nin' the

follo%in' errors alle'edly "ommitted y the "ourt a 4uo, to %it:

K 4C RES N=EN ?&= &C E= F4 ? K R 4N E CESS KR4S=4C 4 N &N= F4 ? GR&DE & KSE =4SCRE 4 N

&2 KN 4NG &CP KR4S=4C 4 N 4N 4SSK4NG ?E FR4 RE 424N&RI 4N KNC 4 N 4N D4 & 4 N ?E RK ES N

ED4=ENCE &N= R CE=KRE, &R 4CK &R I SEC. 3 (a), RK EL8 ?E RED4SE= RK ES C KR &N= ?E RED&4 4NG

KR4S RK=ENCE.

K 4C RES N=EN 4N 4SSK4NG ?E D 4= R=ER =& E=SE E2 ER 16, 1//*, ?&=, 4N E EC , & RE&=I RE K=GE=

?E 2ER4 S ?E 2&4N C&SE.

K 4C RES N=EN ?&= 4SSKE= ?E D 4= R=ER&CC R=4NG RE 4E & N N &R I 4N C4D4 C&SE N . /* *3*F4 ? K KR4S=4C 4 N.

K 4C RES N=EN 4N 4SSK4NG ?E D 4= R=ER ?&=

=E R4DE= E 4 4 NER SK S &N 4DE &N= R CE=KR& =KER CESSA K 4C RES N=EN ?&= REC SE= E 4 4 NERS

R4G? &N= ?E R KN4 I CR SS E &24NE R C ERSF4 NESSES & &= &N= ?ER S&. ;*<

n e ruary *, 1//L, the C& rendered its de"ision ndin' that

ud'e Goros#e did not a"t %ith 'ra$e a use of dis"retion in issuin' thedis#uted order. he #etition for "ertiorari %as thus dismissed for la"9 of

merit.





&fter a "areful #erusal of the re"ords, %e a'ree %ith the C& and aJrm

its de"ision in toto5

etitioner does not deny that the Buestioned Dad$ertisements are su stantially similar to OG s dou le tu'or ta" ta" 9ey $isual. ?o%e$er, it su mits that OG is notentitled to the relief demanded, %hi"h is to en!oin #etitioner fromairin' said D ad$ertisements, for the reason that #etitioner hasCerti "ates of Co#yri'ht Re'istration for %hi"h ad$ertisements%hile OG has none %ith res#e"t to its dou le tu' or ta" ta" 9ey$isual. 4n other %ords, it is #etitioners "ontention that OG isnot entitled to any #rote"tion e"ause it has not re'istered %iththe National i rary the $ery D "ommer"ials %hi"h it "laimsha$e een infrin'ed y #etitioner.

Fe disa'ree. Se"tion of = */ sti#ulates that the

"o#yri'ht for a %or9 or intelle"tual "reation su sists from themoment of its "reation. &""ordin'ly, the "reator a"Buires"o#yri'ht for his %or9 ri'ht u#on its "reation. Contrary to#etitioners "ontention, the intelle"tual "reators e>er"ise anden!oyment of "o#yri'ht for his %or9 and the #rote"tion 'i$en yla% to him is not "ontin'ent or de#endent on any formality orre'istration. herefore, ta9in' the material alle'ations of #ara'ra#hs 1.3 to 1.L of OG s$eri ed Com#laint in the "onte>tof = */, it "annot e seriously dou ted that at least, for#ur#oses of determinin' %hether #reliminary in!un"tion shouldissue durin' the#enden"y of the "ase, OG is entitled to thein!un"ti$e relief #rayed for in its Com#laint.

he se"ond 'round is li9e%ise not %ell ta9en. &s ad$erted

to earlier, the #ro$isional remedy of #reliminary in!un"tion %illnot issue unless it is sho%n in the $eri ed "om#laint that #lainti is #ro a ly entitled to the relief demanded, %hi"h "onsists in%hole or in #art in restrainin' the "ommission or "ontinuan"e of the a"ts "om#lained of. 4n $ie% of su"h reBuirement, the "ourthas to ma9e a tentati$e determination if the ri'ht sou'ht to e#rote"ted e>ists and %hether the a"t a'ainst %hi"h the %rit is to

e dire"ted is $iolati$e of su"h ri'ht. Certainly, the "ourtsdetermination as to the #ro#riety of issuin' the %rit "annot eta9en as a #re!ud'ment of the merits of the "ase e"ause it istentati$e in nature and the %rit may e dissol$ed durin' or afterthe trial if the "ourt nds that #lainti %as not entitled to it.

> > > > > > > > >



$iously, the determination made y the "ourt a Buo %as

only for #ur#oses of #reliminary in!un"tion, %ithout #assin' u#onthe merits of the "ase, %hi"h "annot e done until after a full

lo%n hearin' is "ondu"ted.

he third 'round is #atently unmeritorious. &s alle'ed inthe Com#laint OG is a su sidiary of ro"ter and Gam leCom#any ( OG) for %hi"h the dou le tu' orta" ta" 9ey $isual %as"on"e#tuali-ed or "reated. 4n that "a#a"ity, OG used the said

D ad$ertisement in the hili##ines to #romote its #rodu"ts. &ssu"h su sidiary, OG is de nitely %ithin the #rote"ti$e mantleof the statute (Se". 6, = */).

inally, Fe nd the #ro"edure ado#ted y the "ourt a

4uo to e in order.

he re"ord "learly sho%s that res#ondent ud'e follo%edthe (#ro"edure #ro$ided for in Se"tion L, Rule L8, as amended y

*, and ara'ra#h &(8) of the 4nterim Rules). 4n fa"t, the"ourt a 4uo set the in"ident for hearin' on Se#tem er , 1//*, at%hi"h date #etitioner %as ordered to sho% "ause %hy the %ritshould not e issued. etitioner led an ##osition to thea##li"ation for #reliminary in!un"tion. he same in"ident %asa'ain set for hearin' on Se#tem er /, 1//*, durin' %hi"h the#arties made some manifestations in su##ort of their res#e"ti$e#ositions. Su seBuent to su"h hearin' #etitioner led a Re#ly

to OG s Re!oinder to its ##osition. Knder the fore'oin'"ir"umstan"es, it is a surd to e$en su''est that #etitioner %asnot 'i$en its day in "ourt in the matter of the issuan"e of the#reliminary in!un"ti$e relief.

> > > > > > > > >

here %as of "ourse e>treme ur'en"y for the "ourt a 4uo to

a"t on #lainti s a##li"ation for #reliminary in!un"tion. he airin'of D "ommer"ials is ne"essarily of limited duration only. Fithoutsu"h tem#orary relief, any #ermanent in!un"tion a'ainst theinfrin'in' D ad$ertisements of %hi"h OG may #ossi lysu""eed in 'ettin' after the main "ase is nally ad!udi"ated"ould e illusory if y then su"h ad$ertisements are no lon'erused or aired y #etitioner. 4t is therefore not diJ"ult to #er"ei$ethe #ossi le irre#ara le dama'e %hi"h OG may su er if res#ondent ud'e did not a"t #rom#tly on its a##li"ation for#reliminary in!un"tion. ;L<





reliminary in!un"tion is a #ro$isional remedy intended to #ro$ide

#rote"tion to #arties for the #reser$ation of their ri'hts or interests durin'

the #enden"y of the #rin"i#al a"tion. ;6< hus, Se"tion1, Rule L8 of the Rules of

Court #ro$ides:

Se"tion 1. reliminary in!un"tion de nedA "lasses. &#reliminary in!un"tion is an order 'ranted at any sta'e of ana"tion or #ro"eedin' #rior to the !ud'ment or nal order,reBuirin' a #arty or a "ourt, a'en"y or a #erson to refrain from a#arti"ular a"t or a"ts. 4t may also reBuire the #erforman"e of a#arti"ular a"t or a"ts, in %hi"h "ase it shall e 9no%n as a

#reliminary mandatory in!un"tion.

4n!un"tion is resorted to only %hen there is a #ressin' ne"essity to

a$oid in!urious "onseBuen"es %hi"h "annot e remedied under any standard

"om#ensation. ;7< &s "orre"tly ruled y the C&, there %as an e>treme ur'en"y

to 'rant the #reliminary in!un"tion #rayed for y OG "onsiderin' that D

"ommer"ials are aired for a limited #eriod of time only. 4n fa"t, this Court

ta9es note of the fa"t that the D "ommer"ial in issue the Pite Dad$ertisement is no lon'er aired today, more than 1+ years after the

in!un"tion %as 'ranted on Se#tem er 16, 1//*.

he sole o !e"ti$e of a %rit of #reliminary in!un"tion is to #reser$e the

status Buo until the merits of the "ase "an e heard fully. ;8< & %rit of

#reliminary in!un"tion is 'enerally ased solely on initial and in"om#lete

e$iden"e. ;/< hus, it %as im#ossi le for the "ourt a 4uo to fully dis#ose of the

"ase, as "laimed y #etitioner, %ithout all the e$iden"e needed for the full

resolution of the same. o date, the main "ase still has to e resol$ed y the

trial "ourt.











he issuan"e of a #reliminary in!un"tion rests entirely on the dis"retion

of the "ourt and is 'enerally not interfered %ith e>"e#t in "ases of manifest

a use. ;1+< here %as no su"h a use in the "ase at ar, es#e"ially e"ause

#etitioner %as 'i$en all the o##ortunity to o##ose the a##li"ation for

in!un"tion. he fa"t %as, it failed to "on$in"e the "ourt %hy the in!un"tion

should not e issued. hus, in Santos v. Court o# "ppeals, ;11< %e held that no

'ra$e a use of dis"retion "an e attri uted to a !ud'e or ody issuin' a %rit

of #reliminary in!un"tion %here a #arty has not een de#ri$ed of its day in

"ourt as it %as heard and it e>hausti$ely #resented all its ar'uments and

defenses.

H R 8!R , the #etition is here y D NI D.

G.R. No. 1-5-56 March 11, 2015

ABS+CBN C!R !RATI!N, etitioner,$s.8 9I G!?!N, GI9B RT! R. DUA IT, R., MARISSA 9. 89!R S,

SSICA A. S!R!, GRAC D 9A NA+R Y S, !HN !9I R T.MANA9ASTAS, !HN D! S AND AN D! S, Res#ondents.

= E C 4 S 4 N

9 !N N, J.:

he main issue in this "ase is %hether there is #ro a le "ause to "har'eres#ondents %ith infrin'ement under Re#u li" &"t No. 8 /3, other%ise9no%n as the 4ntelle"tual ro#erty Code. he resolution of this issue reBuires"lari "ation of the "on"e#t of 5"o#yri'hta le material5 in relation to material

that is re road"ast li$e as a ne%s story. Fe are also as9ed to rule on %hether"riminal #rose"ution for infrin'ement of "o#yri'hta le material, su"h as li$ere road"ast, "an e ne'ated y 'ood faith.

& S C N Cor#oration (& S C N) led the etition for Re$ie% on Certiorari 1 toassail the No$em er /, +1+ =e"ision and the 2ar"h 3, +11 Resolution 3 ofthe Court of &##eals. he Court of &##eals reinstated the =e#artment of

usti"e Resolution dated &u'ust 1, ++L that ordered the %ithdra%al of the



http://lawphil.net/judjuris/juri2015/mar2015/gr_195956_2015.html#fnt1










4nformation ndin' #ro a le "ause for res#ondents $iolation of Se"tions177 * and 11 L of the 4ntelle"tual ro#erty Code. 6 Res#ondents are oJ"ersand em#loyees of G2& Net%or9, 4n". (G2& 7). hey are: eli#e Go-on(Go-on), G2& 7 residentA Gil erto R. =ua$it, r. (=ua$it, r.), E>e"uti$e Di"e

residentA 2arissa . lores ( lores), Di"e resident for Ne% and u li"

& airsA essi"a &. Soho (Soho), =ire"tor for Ne%sA Gra"e =ela eTa Reyes(=ela eTa Reyes), ?ead of Ne%s and u li" & airsA ohn li$er 2analastas(2analastas), ro'ram 2ana'erA and others.

he "ontro$ersy arose from G2& 7 s ne%s "o$era'e on the home"omin' ofili#ino o$erseas %or9er and hosta'e $i"tim &n'elo dela Cru- on uly ,++*. &s summari-ed y the Court of &##eals:

$erseas ili#ino %or9er &n'elo dela Cru- %as 9idna##ed y 4raBi militantsand as a "ondition for his release, a demand %as made for the %ithdra%al of

ili#ino troo#s in 4raB. &fter ne'otiations, he %as released y his "a#tors and

%as s"heduled to return to the "ountry in the afternoon of uly ++*.""asioned y said home"omin' and the #u li" interest it 'enerated, oth . .. G2& Net%or9, 4n". . . . and ;#etitioner< made their res#e"ti$e road"astsand "o$era'e of the li$e e$ent. 7

& S C N 5"ondu"ted li$e audio $ideo "o$era'e of and road"asted thearri$al of &n'elo dela Cru- at the Ninoy &Buino 4nternational &ir#ort (N&4&)and the su seBuent #ress "onferen"e.5 8 & S C N allo%ed Reuters ele$isionSer$i"e (Reuters) to air the foota'es it had ta9en earlier under a s#e"ialem ar'o a'reement. /

& S C N alle'ed that under the s#e"ial em ar'o a'reement, any of thefoota'es it too9 %ould e for the 5use of Reuter s international su s"ri ersonly, and shall e "onsidered and treated y Reuters under Uem ar'oa'ainst use y other su s"ri ers in the hili##ines. . . . ;N<o other hili##inesu s"ri er of Reuters %ould e allo%ed to use & S C N foota'e %ithout thelatter s "onsent.5 1+

G2& 7, to %hi"h Go-on, =ua$it, r., lores, Soho, =ela eTa Reyes, and2analastas are "onne"ted, 5assi'ned and stationed ne%s re#orters andte"hni"al men at the N&4& for its li$e road"ast and non li$e ne%s "o$era'eof the arri$al of dela Cru-.5 11 G2& 7 su s"ri es to oth Reuters and Ca leNe%s Net%or9 (CNN). 4t re"ei$ed a li$e $ideo feed of the "o$era'e of &n'elodela Cru- s arri$al from Reuters. 1

G2& 7 immediately "arried the li$e ne%s feed in its #ro'ram 5 lash Re#ort,5to'ether %ith its li$e road"ast. 13 &lle'edly, G2& 7 did not re"ei$e any noti"eor %as not a%are that Reuters %as airin' foota'es of & S C N. 1* G2& 7 sne%s "ontrol room sta sa% neither the 5No &""ess hili##ines5 noti"e nor anoti"e that the $ideo feed %as under em ar'o in fa$or of & S C N. 1L



























n &u'ust 13, ++*, & S C N led the Com#laint for "o#yri'ht infrin'ementunder Se"tions 177 16 and 11 17 of the 4ntelle"tual ro#erty Code. 18

n =e"em er 3, ++*, &ssistant City rose"utor =indo Denturan-a issued theResolution 1/ ndin' #ro a le "ause to indi"t =ela eTa Reyes and

2analastas.+

ConseBuently, the 4nformation1

for $iolation of the 4ntelle"tualro#erty Code %as led on =e"em er 17, ++*. 4t reads:

hat on or a out the nd of uly ++*, in Que-on City, hili##ines, thea o$e named a""used, "ons#irin' to'ether, "onfederatin' %ith and mutuallyhel#in' ea"h other, ein' the ?ead of Ne%s #erations and the ro'ram2ana'er, res#e"ti$ely, for the Ne%s and u li" & airs =e#artment of G2&Net%or9, 4n"., did then and there, %illfully, unla%fully and feloniously use and

road"ast the foota'e of the arri$al of &n'elo ;d<ela Cru- at the Ninoy &Buino4nternational &ir#ort of %hi"h & S C N holds the e>"lusi$e o%nershi# and"o#yri'ht y then and there usin', airin', and road"astin' the said foota'e

in its ne%s #ro'ram 5 &S? RE R 5 %ithout rst o tainin' the "onsent orauthority of said "o#yri'ht o%ner, to their dama'e and #re!udi"e.

Contrary to la%.

n anuary *, ++L, res#ondents led the etition for Re$ie% efore the=e#artment of usti"e. 3 4n the Resolution (Gon-ale- Resolution) dated &u'ust1, ++L, =e#artment of usti"e Se"retary Raul 2. Gon-ale- (Se"retaryGon-ale-) ruled in fa$or of res#ondents and held that 'ood faith may eraised as a defense in the "ase. * he dis#ositi$e #ortion of the Resolutionreads:

F?ERE RE, ?E E 4 4 N R RED4EF 4 E= I G2& 7 in 4.S. No. +*1+*L8 is "onsidered meritorious and is here y GR&N E=. his "ase is here y=ismissed, the resolution of the City rose"utor of Que-on City is here yre$ersed and the same is ordered to %ithdra% the information if any andre#ort a"tion ta9en to this oJ"e %ithin ten (1+) days. L (Em#hasis in theori'inal)

oth #arties mo$ed for re"onsideration of the Gon-ale- Resolution. 6

2ean%hile, on anuary 1/, ++L, the trial "ourt 'ranted the 2otion toSus#end ro"eedin's led earlier y =ela eTa Reyes and 2analastas. 7 hetrial "ourt rder reads:

erusin' the motion, the "ourt nds that a #etition for re$ie% %as led %iththe =e#artment of usti"e on anuary L, ++L as "on rmed y the #u li"#rose"utor. Knder Se"tion 11 ("), Rule 116 of the Rules of Criminal ro"edure,on"e a #etition for re$ie% is led %ith the =e#artment of usti"e, asus#ension of the "riminal #ro"eedin's may e allo%ed y the "ourt.



























&""ordin'ly, to allo% the =e#artment of usti"e the o##ortunity to a"t on said#etition for re$ie%, let the #ro"eedin's on this "ase e sus#ended for a#eriod of si>ty (6+) days "ounted from anuary L, ++L, the date the #etition%as led %ith the =e#artment of usti"e. he arrai'nment of the a""used on

e ruary 1, ++L is a""ordin'ly "an"elled. et the arrai'nment e

res"heduled to 2ar"h 8, ++L at 8:3+ a.m. he a""used throu'h "ounsel arenoti ed in o#en "ourt.

S R=ERE=. 8

n une /, +1+, =e#artment of usti"e &"tin' Se"retary &l erto C. &'ra(Se"retary &'ra) issued the Resolution (&'ra Resolution) that re$ersed theGon-ale- Resolution and found #ro a le "ause to "har'e =ela eTa Reyesand 2analastas for $iolation of the 4ntelle"tual ro#erty Code. / Se"retary&'ra also found #ro a le "ause to indi"t Go-on, =ua$it, r., lores, and Sohofor the same $iolation. 3+ ?e ruled that:

;%<hile 'ood faith may e a defense in "o#yri'ht infrin'ement, the same is adis#uta le #resum#tion that must e #ro$en in a full lo%n trial. =is#uta le#resum#tions may e "ontradi"ted and o$er"ome y other e$iden"e. hus, afull lo%n trial is the #ro#er $enue %here fa"ts, issues and la%s aree$aluated and "onsidered. he $ery #ur#ose of trial is to allo% a #arty to#resent e$iden"e to o$er"ome the dis#uta le #resum#tions in$ol$ed. 31

he dis#ositi$e #ortion of the &'ra Resolution #ro$ides:

F?ERE RE, #remises "onsidered:

(a) he 2otion for Re"onsideration led y a##ellees & S C Nroad"astin' Cor#oration (& S C N) of our Resolution #romul'ated on

&u'ust 1, ++L (Resolution No. 36*, Series of ++L) and the etition forRe$ie% led y "om#lainant a##ellant & S C N in 4.S. No. +* 1+*L8 on&#ril1+, ++6, are GR&N E= and the City rose"utor of Que-on City ishere y ordered to le the ne"essary 4nformation for $iolation of Se"tion177 and 11 of Re#u li" &"t No. 8 /3 a'ainst G2& 7. eli#e . Go-on,Gil erto R. =ua$it, r., 2arissa . lores, essi"a &. Soho, Gra"e =ela

ena Reyes, ohn li$er . 2analastas;.<

. . . .

S R=ERE=. 3 (Em#hasis in the ori'inal)

Res#ondents assailed the &'ra Resolution throu'h the etition for Certiorari%ith #rayer for issuan"e of a tem#orary restrainin' order and@or Frit of

reliminary 4n!un"tion on Se#tem er , +1+ efore the Court of &##eals. 4nthe Resolution dated Se#tem er 13, +1+, the Court of &##eals 'ranted the













tem#orary restrainin' order #re$entin' the =e#artment of usti"e fromenfor"in' the &'ra Resolution. 33

n No$em er /, +1+, the Court of &##eals rendered the =e"ision 'rantin'the etition and re$ersin' and settin' aside the &'ra Resolution. 3* he Court

of &##eals held that Se"retary &'ra "ommitted errors of !urisdi"tion inissuin' the assailed Resolution. Resol$in' the issue of "o#yri'htinfrin'ement, the Court of &##eals said:

Surely, #ri$ate res#ondent has a "o#yri'ht of its ne%s "o$era'e. Seemin'ly,for airin' said $ideo feed, #etitioner G2& is lia le under the #ro$isions of the4ntelle"tual ro#erty Code, %hi"h %as ena"ted #ur#osely to #rote"t "o#yri'hto%ners from infrin'ement. ?o%e$er, it is an admitted fa"t that #etitionerG2& had only aired a $e (L) se"ond foota'e of the dis#uted li$e $ideo feedthat it had re"ei$ed from Reuters and CNN as a su s"ri er. 4ndeed,#etitioners had no noti"e of the ri'ht of o%nershi# of #ri$ate res#ondent o$er

the same. Fithout noti"e of the 5No &""ess hili##ines5 restri"tion of the li$e$ideo feed, #etitioner "annot e faulted for airin' a li$e $ideo feed fromReuters and CNN.

Derily, as a#tly o#ined y Se"retary Gon-ale- in his earlier Resolution, the a"tof #etitioners in airin' the $e (L) se"ond foota'e %as undenia ly attended

y 'ood faith and it thus ser$es to e>"ul#ate them from "riminal lia ilityunder the Code. Fhile the 4ntelle"tual ro#erty Code is a s#e"ial la%, andthus 'enerally "ate'ori-ed as malum #rohi itum, it ears to stress that the#ro$isions of the Code itself do not i#so fa"to #enali-e a #erson or entity for"o#yri'ht infrin'ement y the mere fa"t that one had used a "o#yri'hted

%or9 or material.

Certainly so, in the e>er"ise of one s moral and e"onomi" or "o#yri'hts, the$ery #ro$isions of art 4D of the 4ntelle"tual ro#erty Code #ro$ide for thes"o#e and limitations on "o#yri'ht #rote"tion under Se"tion 18* and in fa"t#ermit fair use of "o#yri'hted %or9 under Se"tion 18L. Fith the aforesaidstatutory limitations on one s e"onomi" and "o#yri'hts and the allo%a leinstan"es %here the other #ersons "an le'ally use a "o#yri'hted %or9,"riminal "ul#a ility "learly atta"hes only %hen the infrin'ement had een9no%in'ly and intentionally "ommitted. 3L (Em#hasis su##lied)

he dis#ositi$e #ortion of the =e"ision reads:

F?ERE RE, the fore'oin' "onsidered, the instant #etition is here yGR&N E= and the assailed Resolution dated / une +1+ REDERSE= andSE &S4=E. &""ordin'ly, the earlier Resolution dated 1 &u'ust ++L, %hi"hordered the %ithdra%al of the 4nformation led, if any, a'ainst the #etitionersfor $iolation of Se"tions 177 and 11 of the 4ntelle"tual ro#erty Code, ishere y RE4NS & E=. No "osts.









S R=ERE=. 36 (Em#hasis in the ori'inal)

& S C N s 2otion for Re"onsideration %as denied. 37 4t then led its etitionfor Re$ie% efore this "ourt assailin' the =e"ision and Resolution of theCourt of &##eals. 38

he issues for this "ourt s "onsideration are:

irst, %hether Se"retary &'ra "ommitted errors of !urisdi"tion in theResolution dated une /, +1+ and, therefore, %hether a #etition for"ertiorari %as the #ro#er remedy in assailin' that ResolutionA

Se"ond, %hether ne%s foota'e is "o#yri'hta le under the la%A

hird, %hether there %as fair use of the road"ast materialA

ourth, %hether la"9 of 9no%led'e that a material is "o#yri'hted is a defensea'ainst "o#yri'ht infrin'ementA

ifth, %hether 'ood faith is a defense in a "riminal #rose"ution for $iolation of the 4ntelle"tual ro#erty CodeA and

astly, %hether the Court of &##eals %as "orre"t in o$erturnin' Se"retary&'ra s ndin' of #ro a le "ause.

4

he trial "ourt 'ranted res#ondents 2otion to Sus#end ro"eedin's anddeferred res#ondents =ela eTa Reyes and 2analastas arrai'nment for 6+days in $ie% of the etition for Re$ie% led efore the =e#artment of usti"e.

Rule 116, Se"tion 11 (") of the Rules of Criminal ro"edure allo%s

the sus#ension of the a""used s arrai'nment in "ertain "ir"umstan"es only:

SEC. 11. Sus#ension of arrai'nment.VK#on motion y the #ro#er #arty, thearrai'nment shall e sus#ended in the follo%in' "ases:

(a) he a""used a##ears to e su erin' from an unsound mental"ondition %hi"h e e"ti$ely renders him una le to fully understand the"har'e a'ainst him and to #lead intelli'ently thereto. 4n su"h "ase, the"ourt shall order his mental e>amination and, if ne"essary, his"on nement for su"h #ur#oseA

( ) here e>ists a #re!udi"ial BuestionA and









(") & #etition for re$ie% of the resolution of the #rose"utor is #endin'at either the =e#artment of usti"e, or the J"e of the residentA#ro$ided, that the #eriod of sus#ension shall not e>"eed si>ty (6+) days"ounted from the lin' of the #etition %ith the re$ie%in' oJ"e. (1 a)(Em#hasis su##lied)

4n Sa-son v. 6a&ay, 3/ this "ourt a"9no%led'ed the a##li"a ility of Rule 116,Se"tion (") in a "riminal #rose"ution for infrin'ement under the 4ntelle"tual

ro#erty Code. ?o%e$er, this "ourt em#hasi-ed the limits of the order ofdeferment under the Rule:

Fhile the #enden"y of a #etition for re$ie% is a 'round for sus#ension of thearrai'nment, the . . . #ro$ision limits the deferment of the arrai'nment to a#eriod of 6+ days re"9oned from the lin' of the #etition %ith the re$ie%in'oJ"e. 4t follo%s, therefore, that after the e>#iration of said #eriod, the trial"ourt is ound to arrai'n the a""used or to deny the motion to defer

arrai'nment.*+

Fe "larify that the sus#ension of the arrai'nment should al%ays e %ithinthe limits allo%ed y la%. 4n Cres#o $. ud'e 2o'ul, *1 this "ourt outlined thee e"ts of lin' an information efore the trial "ourt, %hi"h in"ludes initiatin'a "riminal a"tion and 'i$in' this "ourt 5authority to hear and determine the"ase5: *

he #reliminary in$esti'ation "ondu"ted y the s"al for the #ur#ose ofdeterminin' %hether a #rima fa"ie "ase e>ists %arrantin' the #rose"ution ofthe a""used is terminated u#on the lin' of the information in the #ro#er

"ourt. 4n turn, as a o$e stated, the lin' of said information sets in motionthe "riminal a"tion a'ainst the a""used in Court. Should the s"al nd it#ro#er to "ondu"t a rein$esti'ation of the "ase, at su"h sta'e, the #ermissionof the Court must e se"ured. &fter su"h rein$esti'ation the ndin' andre"ommendations of the s"al should e su mitted to the Court fora##ro#riate a"tion. Fhile it is true that the s"al has the Buasi !udi"ialdis"retion to determine %hether or not a "riminal "ase should e led in"ourt or not, on"e the "ase had already een rou'ht to Court %hate$erdis#osition the s"al may feel should e #ro#er in the "ase thereafter should

e addressed for the "onsideration of the Court, the only Buali "ation is thatthe a"tion of the Court must not im#air the su stantial ri'hts of the a""usedor the ri'ht of the eo#le to due #ro"ess of la%.

Fhether the a""used had een arrai'ned or not and %hether it %as due to arein$esti'ation y the s"al or a re$ie% y the Se"retary of usti"e %here y amotion to dismiss %as su mitted to the Court, the Court in the e>er"ise of itsdis"retion may 'rant the motion or deny it and reBuire that the trial on themerits #ro"eed for the #ro#er determination of the "ase.











?o%e$er, one may as9, if the trial "ourt refuses to 'rant the motion todismiss led y the s"al u#on the dire"ti$e of the Se"retary of usti"e %illthere not e a $a"uum in the #rose"utionW & state #rose"utor to handle the"ase "annot #ossi ly e desi'nated y the Se"retary of usti"e %ho does not

elie$e that there is a asis for #rose"ution nor "an the s"al e e>#e"ted to

handle the #rose"ution of the "ase there y defyin' the su#erior order of theSe"retary of usti"e. he ans%er is sim#le. he role of the s"al or #rose"utoras Fe all 9no% is to see that !usti"e is done and not ne"essarily to se"ure the"on$i"tion of the #erson a""used efore the Courts. hus, in s#ite of hiso#inion to the "ontrary, it is the duty of the s"al to #ro"eed %ith the#resentation of e$iden"e of the #rose"ution to the Court to ena le the Courtto arri$e at its o%n inde#endent !ud'ment as to %hether the a""used should

e "on$i"ted or a"Buitted. he s"al should not shir9 from the res#onsi ilityof a##earin' for the eo#le of the hili##ines e$en under su"h "ir"umstan"esmu"h less should he a andon the #rose"ution of the "ase lea$in' it to thehands of a #ri$ate #rose"utor for then the entire #ro"eedin's %ill e null and

$oid. he least that the s"al should do is to "ontinue to a##ear for the#rose"ution althou'h he may turn o$er the #resentation of the e$iden"e tothe #ri$ate #rose"utor ut still under his dire"tion and "ontrol.

he rule therefore in this !urisdi"tion is that on"e a "om#laint or informationis led in Court any dis#osition of the "ase as to its dismissal or the"on$i"tion or a"Buittal of the a""used rests in the sound dis"retion of theCourt. &lthou'h the s"al retains the dire"tion and "ontrol of the #rose"utionof "riminal "ases e$en %hile the "ase is already in Court he "annot im#osehis o#inion on the trial "ourt. he Court is the est and sole !ud'e on %hat todo %ith the "ase efore it. he determination of the "ase is %ithin its

e>"lusi$e !urisdi"tion and "om#eten"e. & motion to dismiss the "ase led ythe s"al should e addressed to the Court %ho has the o#tion to 'rant ordeny the same. 4t does not matter if this is done efore or after thearrai'nment of the a""used or that the motion %as led after arein$esti'ation or u#on instru"tions of the Se"retary of usti"e %ho re$ie%edthe re"ords of the in$esti'ation. *3 (Em#hasis su##lied, "itations omitted)

he do"trine in Cres#o %as reiterated in 2ayor alindon' $. Court of&##eals, ** %here this "ourt reminded the =e#artment of usti"e Se"retary torefrain from entertainin' #etitions for re$ie% %hen the "ase is already#endin' %ith this "ourt:

;4<n order to a$oid a situation %here the o#inion of the Se"retary of usti"e%ho re$ie%ed the a"tion of the s"al may e disre'arded y the trial "ourt,the Se"retary of usti"e should, as far as #ra"ti"a le, refrain fromentertainin' a #etition for re$ie% or a##eal from the a"tion of the s"al,%hen the "om#laint or information has already een led in the Court. hematter should e left entirely for the determination of the Court. *L









he trial "ourt should ha$e #ro"eeded %ith res#ondents =ela eTa Reyes and2analastas arrai'nment after the 6+ day #eriod from the lin' of the

etition for Re$ie% efore the =e#artment of usti"e on 2ar"h 8, ++L. 4t %asonly on Se#tem er 13, +1+ that the tem#orary restrainin' order %as issued

y the Court of &##eals. he trial "ourt erred %hen it did not a"t on the

"riminal "ase durin' the interim #eriod. 4t had full "ontrol and dire"tion of the"ase. &s ud'e 2o'ul reasoned in denyin' the motion to dismiss in Cres#o,failure to #ro"eed %ith the arrai'nment 5disre'ards the reBuirements of due#ro"ess ;and< erodes the Court s inde#enden"e and inte'rity.5 *6

44

&""ordin' to & S C N, the Court of &##eals erred in ndin' that: a motionfor re"onsideration %as not ne"essary efore a #etition for "ertiorari "ould e

ledA the =e#artment of usti"e Se"retary "ommitted errors of !urisdi"tionsin"e the &'ra Resolution %as issued %ithin its authority and in a""ordan"e

%ith settled la%s and !uris#ruden"eA and res#ondents %ere not lia le for"o#yri'ht infrin'ement.

4n its assailed =e"ision, the Court of &##eals found that res#ondents"ommitted a #ro"edural error %hen they failed to le a motion forre"onsideration efore lin' the etition for Certiorari. ?o%e$er, the Court of&##eals held that a motion for re"onsideration %as unne"essary sin"e the&'ra Resolution %as a #atent nullity and it %ould ha$e een useless underthe "ir"umstan"es: Gi$en that a readin' of the assailed Resolution and theinstant re"ords readily re$eals errors of !urisdi"tion on the #art of res#ondentSe"retary, dire"t !udi"ial re"ourse is %arranted under the "ir"umstan"es.

&side from the fa"t that said Resolution is a #atent nullity ha$in' een issuedin 'ra$e a use of dis"retion amountin' to la"9 or e>"ess of !urisdi"tion, thelin' of a motion for re"onsideration is e$idently useless on a""ount of the

fa"t that the issues and ar'uments efore this Court ha$e already een dulyraised and a""ordin'ly del$ed into y res#ondent Se"retary in his dis#ositionof the #etition a Buo. *7 (Em#hasis in the ori'inal)

4n Elma $. a"o i, *8 this "ourt ruled that a #etition for "ertiorari under Rule 6Lof the Rules of Court is #ro#er %hen assailin' ad$erse resolutions of the=e#artment of usti"e stemmin' from the determination of #ro a le"ause. */ ?o%e$er, 'ra$e a use of dis"retion must e alle'ed. L+

4n Sanrio Com#any imited $. im, L1 this "ourt stressed the #rose"utor s rolein determinin' #ro a le "ause. udi"ial re$ie% %ill only lie %hen it is sho%nthat the #rose"utor a"ted %ith 'ra$e a use of dis"retion amountin' to la"9 ore>"ess of !urisdi"tion:

& #rose"utor alone determines the suJ"ien"y of e$iden"e that %ill esta lish#ro a le "ause !ustifyin' the lin' of a "riminal information a'ainst the















res#ondent. y %ay of e>"e#tion, ho%e$er, !udi"ial re$ie% is allo%ed %hereres#ondent has "learly esta lished that the #rose"utor "ommitted 'ra$ea use of dis"retion. ther%ise stated, su"h re$ie% is a##ro#riate only %henthe #rose"utor has e>er"ised his dis"retion in an ar itrary, "a#ri"ious,%himsi"al or des#oti" manner y reason of #assion or #ersonal hostility,

#atent and 'ross enou'h to amount to an e$asion of a #ositi$e duty or$irtual refusal to #erform a duty en!oined y la%. L (Citations omitted)

Gra$e a use of dis"retion refers to:

su"h "a#ri"ious and %himsi"al e>er"ise of !ud'ment as is eBui$alent to la"9of !urisdi"tion. he a use of dis"retion must e 'ra$e as %here the #o%er ise>er"ised in an ar itrary or des#oti" manner y reason of #assion or #ersonalhostility and must e so #atent and 'ross as to amount to an e$asion of#ositi$e duty or to a $irtual refusal to #erform the duty en!oined y or to a"tat all in "ontem#lation of la%. L3

Resortin' to "ertiorari reBuires that there e there e 5no a##eal, or any#lain, s#eedy, and adeBuate remedy in the ordinary "ourse of la%;,<5 L* su"has a motion for re"onsideration. Generally, 5a motion for re"onsideration is a"ondition sine Bua non efore a #etition for "ertiorari may lie, its #ur#ose

ein' to 'rant an o##ortunity for the ;tri unal or oJ"er< to "orre"t any errorattri uted to it y a re e>amination of the le'al and fa"tual "ir"umstan"es ofthe "ase.5 LL ?o%e$er, e>"e#tions to the rule e>ist:

(a) %here the order is a #atent nullity, as %here the Court a Buo had no !urisdi"tionA ( ) %here the Buestions raised in the "ertiorari #ro"eedin' ha$e

een duly raised and #assed u#on y the lo%er "ourt, or are the same asthose raised and #assed u#on in the lo%er "ourtA (") %here there is an ur'entne"essity for the resolution of the Buestion and any further delay %ould#re!udi"e the interests of the Go$ernment or of the #etitioner or the su !e"tmatter of the a"tion is #erisha leA (d) %here, under the "ir"umstan"es, amotion for re"onsideration %ould e uselessA (e) %here #etitioner %asde#ri$ed of due #ro"ess and there is e>treme ur'en"y for reliefA (f) %here, ina "riminal "ase, relief from an order of arrest is ur'ent and the 'rantin' ofsu"h relief y the trial Court is im#ro a leA (') %here the #ro"eedin's in thelo%er "ourt are a nullity for la"9 of due #ro"essA (h) %here the #ro"eedin's%as e> #arte or in %hi"h the #etitioner had no o##ortunity to o !e"tA and (i)%here the issue raised is one #urely of la% or %here #u li" interest isin$ol$ed. L6(Em#hasis in the ori'inal, "itations omitted)

&s ar'ued y res#ondents, 5;a< se"ond motion for re"onsideration %ouldha$e een useless and futile sin"e the =;e#artment< ;of< ;usti"e< hadalready #assed u#on the same issues t%i"e.5 L7 EBually #ressin' under the"ir"umstan"es %as the need to resol$e the matter, as the 4nformation s lin'%ould lead to res#ondents imminent arrest. L8

















2oreo$er, =e#artment of usti"e =e#artment Cir"ular No. 7+ dated uly 3,+++, or the +++ N S Rules on &##eal, #ro$ides that no se"ond motion for

re"onsideration of the =e#artment of usti"e Se"retary s resolution shall eentertained:

SEC 4 N 13. 2otion for re"onsideration. he a''rie$ed #arty may le amotion for re"onsideration %ithin a non e>tendi le #eriod of ten (1+) daysfrom re"ei#t of the resolution on a##eal, furnishin' the ad$erse #arty and the

rose"ution J"e "on"erned %ith "o#ies thereof and su mittin' #roof ofsu"h ser$i"e. No se"ond or further motion for re"onsideration shall eentertained.

he &'ra Resolution %as the result of res#ondents 2otion forRe"onsideration assailin' the Gon-ale- Resolution. o le a motion forre"onsideration of the &'ra Resolution %ould e su#erHuous. Res#ondents%ere, therefore, "orre"t in lin' the etition for Certiorari of the &'ra

Resolution efore the Court of &##eals.444

he Court of &##eals ruled that Se"retary &'ra "ommitted errors of !urisdi"tion, %hi"h then reBuired the 'rant of the %rit of "ertiorari:

So $ie%ed, y orderin' the lin' of information %ithout #roof that #ro a le"ause e>ists to "har'e #etitioners %ith a "rime, res#ondent Se"retary "learly"ommitted an error of !urisdi"tion thus %arrantin' the issuan"e of the %rit of"ertiorari. Surely, #ro a le "ause "annot e had %hen the $ery #ro$isions of

the statute e>"ul#ates "riminal lia ility in "ases "lassi ed as fair use of"o#yri'hted materials. he fa"t that they admittedly used the Reuters li$e$ideo feed is not, as a matter of "ourse, tantamount to "o#yri'htinfrin'ement that %ould !ustify the lin' of an information a'ainst the#etitioners. L/

Error of !urisdi"tion must e distin'uished from error of !ud'ment:

& line must e dra%n et%een errors of !ud'ment and errors of !urisdi"tion.&n error of !ud'ment is one %hi"h the "ourt may "ommit in the e>er"ise of its

!urisdi"tion. &n error of !urisdi"tion renders an order or !ud'ment $oid or$oida le. Errors of !urisdi"tion are re$ie%a le on "ertiorariA errors of

!ud'ment, only y a##eal. 6+

4n eo#le $. ?on. Sandi'an ayan 61 :

&n error of !ud'ment is one %hi"h the "ourt may "ommit in the e>er"ise of its !urisdi"tion. &n error of !urisdi"tionis one %here the a"t "om#lained of %asissued y the "ourt %ithout or in e>"ess of !urisdi"tion, or %ith 'ra$e a use of









dis"retion, %hi"h is tantamount to la"9 or in e>"ess of !urisdi"tion and %hi"herror is "orre"ti le only y the e>traordinary %rit of "ertiorari. Certiorari %illnot e issued to "ure errors of the trial "ourt in its a##re"iation of thee$iden"e of the #arties, or its "on"lusions an"hored on the said ndin's andits "on"lusions of la%. 6 (Em#hasis su##lied)

his "ourt has ado#ted a deferential attitude to%ards re$ie% of thee>e"uti$e s ndin' of #ro a le "ause. 63 his is ased 5not only u#on theres#e"t for the in$esti'atory and ;#rose"utorial< #o%ers 'ranted y theConstitution to the e>e"uti$e de#artment ut u#on #ra"ti"ality as%ell.5 6* Re$ie% of the =e#artment of usti"e Se"retary s de"ision or resolution%ill e allo%ed only %hen 'ra$e a use of dis"retion is alle'ed:

he full dis"retionary authority to determine #ro a le "ause in a #reliminaryin$esti'ation to as"ertain suJ"ient 'round for the lin' of information rests%ith the e>e"uti$e ran"h. ?en"e, !udi"ial re$ie% of the resolution of the

Se"retary of usti"e is limited to a determination %hether there has een a'ra$e a use of dis"retion amountin' to la"9 or e>"ess of !urisdi"tion. Courts"annot su stitute the e>e"uti$e ran"h s !ud'ment.

. . . .

4t is only %here the de"ision of the usti"e Se"retary is tainted %ith 'ra$ea use of dis"retion amountin' to la"9 or e>"ess of !urisdi"tion that the Courtof &##eals may ta9e "o'ni-an"e of the "ase in a #etition for "ertiorari underRule 6L of the Re$ised Rules of Ci$il ro"edure. he Court of &##eals de"isionmay then e a##ealed to this Court y %ay of a #etition for re$ie% on

"ertiorari.6L

(Em#hasis su##lied, "itations omitted)

4n this "ase, it must e sho%n that Se"retary &'ra e>"eeded his authority%hen he re$ersed the ndin's of Se"retary Gon-ale-. his "ourt mustdetermine %hether there is #ro a le "ause to le an information for"o#yri'ht infrin'ement under the 4ntelle"tual ro#erty Code.

4D

ro a le "ause #ertains to 5su"h fa"ts as are suJ"ient to en'ender a %ellfounded elief that a "rime has een "ommitted and that res#ondent is#ro a ly 'uilty thereof.5 66 reliminary in$esti'ation is the inBuiry or#ro"eedin' to determine %hether there is #ro a le "ause. 67

4n Fe $. =e eon, 68 this "ourt ruled that determination of #ro a le "ausedurin' #reliminary in$esti'ation does not reBuire trial li9e e$aluation ofe$iden"e sin"e e>isten"e of #ro a le "ause does not eBuate to 'uilt:

















4t ou'ht to e em#hasi-ed that in determinin' #ro a le "ause, the a$era'eman %ei'hs fa"ts and "ir"umstan"es %ithout resortin' to the "ali rations ofour te"hni"al rules of e$iden"e of %hi"h his 9no%led'e is nil. Rather, he relieson the "al"ulus of "ommon sense of %hi"h all reasona le men ha$e ana undan"e.

. . . .

. . . & ndin' of #ro a le "ause merely inds o$er the sus#e"t to stand trial.4t is not a #ronoun"ement of 'uilt. 6/

4n Reyes $. earl an9 Se"urities, 4n"., 7+ ndin' #ro a le "ause is noteBui$alent to ndin' %ith moral "ertainty that the a""used "ommitted the"rime:

& ndin' of #ro a le "ause needs only to rest on e$iden"e sho%in' that

more li9ely than not a "rime has een "ommitted y the sus#e"ts. 4t neednot e ased on "lear and "on$in"in' e$iden"e of 'uilt, not on e$iden"eesta lishin' 'uilt eyond reasona le dou t, and de nitely not on e$iden"eesta lishin' a solute "ertainty of 'uilt. 4n determinin' #ro a le "ause, thea$era'e man %ei'hs fa"ts and "ir"umstan"es %ithout resortin' to the"ali rations of the rules of e$iden"e of %hi"h he has no te"hni"al 9no%led'e.?e relies on "ommon sense. 71

=urin' #reliminary in$esti'ation, a #u li" #rose"utor does not ad!udi"ate onthe #arties ri'hts, o li'ations, or lia ilities. 7

4n the re"ent "ase of Estrada $. J"e of the m udsman, et al.,73

%ereiterated Fe on the determination of #ro a le "ause durin' #reliminaryin$esti'ation and tra"ed the history of #ro a le "ause as orro%ed from&meri"an !uris#ruden"e:

he #ur#ose in determinin' #ro a le "ause is to ma9e sure that the "ourtsare not "lo''ed %ith %ea9 "ases that %ill only e dismissed, as %ell as tos#are a #erson from the tra$ails of a needless #rose"ution.

. . . .

. . . 4n the Knited States, from %here %e orro%ed the "on"e#t of #ro a le"ause, the #re$ailin' de nition of #ro a le "ause is this:

4n dealin' %ith #ro a le "ause, ho%e$er, as the $ery name im#lies, %e deal%ith #ro a ilities. hese are not te"hni"alA they are the fa"tual and #ra"ti"al"onsiderations of e$eryday life on %hi"h reasona le and #rudent men, notle'al te"hni"ians, a"t. he standard of #roof is a""ordin'ly "orrelati$e to%hat must e #ro$ed.













5 he su stan"e of all the de nitions5 of #ro a le "ause 5is a reasona le'round for elief of 'uilt.5 2"Carthy $. =e &rmit, // a. St. 63, 6/, Buoted%ith a##ro$al in the Carroll o#inion. 67 K. S. at 161. &nd this 5means lessthan e$iden"e %hi"h %ould !ustify "ondemnation5 or "on$i"tion, as 2arshall,C. ., said for the Court more than a "entury a'o in o"9e $. Knited States, 7

Cran"h 33/, 3*8. Sin"e 2arshall s time, at any rate, it has "ome to meanmore than are sus#i"ion: ro a le "ause e>ists %here 5the fa"ts and"ir"umstan"es %ithin their ;the oJ"ers < 9no%led'e and of %hi"h they hadreasona ly trust%orthy information ;are< suJ"ient in themsel$es to %arranta man of reasona le "aution in the elief that5 an o ense has een or is

ein' "ommitted. Carroll $. Knited States, 67 K. S. 13 , 16 .

hese lon' #re$ailin' standards see9 to safe'uard "iti-ens from rash andunreasona le interferen"es %ith #ri$a"y and from unfounded "har'es of"rime. hey also see9 to 'i$e fair lee%ay for enfor"in' the la% in the"ommunity s #rote"tion. e"ause many situations %hi"h "onfront oJ"ers in

the "ourse of e>e"utin' their duties are more or less am i'uous, room muste allo%ed for some mista9es on their #art. ut the mista9es must e thoseof reasona le men, a"tin' on fa"ts leadin' sensi ly to their "on"lusions of#ro a ility. he rule of #ro a le "ause is a #ra"ti"al, non te"hni"al"on"e#tion a ordin' the est "om#romise that has een found fora""ommodatin' these often o##osin' interests. ReBuirin' more %ould undulyham#er la% enfor"ement. o allo% less %ould e to lea$e la% a idin' "iti-ensat the mer"y of the oJ"ers %him or "a#ri"e.

4n the hili##ines, there are four instan"es in the Re$ised Rules of Criminalro"edure %here #ro a le "ause is needed to e esta lished:

(1) 4n Se"tions 1 and 3 of Rule 11 : y the in$esti'atin' oJ"er, todetermine %hether there is suJ"ient 'round to en'ender a %ellfounded elief that a "rime has een "ommitted and the res#ondent is#ro a ly 'uilty thereof, and should e held for trial. & #reliminaryin$esti'ation is reBuired efore the lin' of a "om#laint or informationfor an o ense %here the #enalty #res"ri ed y la% is at least fouryears, t%o months and one day %ithout re'ard to the neA

( ) 4n Se"tions 6 and / of Rule 11 : y the !ud'e, to determine %hethera %arrant of arrest or a "ommitment order, if the a""used has already

een arrested, shall e issued and that there is a ne"essity of #la"in'the res#ondent under immediate "ustody in order not to frustrate theends of !usti"eA

(3) 4n Se"tion L( ) of Rule 113: y a #ea"e oJ"er or a #ri$ate #ersonma9in' a %arrantless arrest %hen an o ense has !ust een "ommitted,and he has #ro a le "ause to elie$e ased on #ersonal 9no%led'e of



fa"ts or "ir"umstan"es that the #erson to e arrested has "ommitted itAand

(*) 4n Se"tion * of Rule 1 6: y the !ud'e, to determine %hether asear"h %arrant shall e issued, and only u#on #ro a le "ause in

"onne"tion %ith one s#e"i " o ense to e determined #ersonally ythe !ud'e after e>amination under oath or aJrmation of the"om#lainant and the %itnesses he may #rodu"e, and #arti"ularlydes"ri in' the #la"e to e sear"hed and the thin's to e sei-ed %hi"hmay e any%here in the hili##ines.

4n all these instan"es, the e$iden"e ne"essary to esta lish #ro a le "ause isased only on the li9elihood, or #ro a ility, of 'uilt. 7*

Estrada also hi'hli'hted that a 5;#<reliminary in$esti'ation is not #art of the"riminal a"tion. 4t is merely #re#aratory and may e$en e dis#osed of in

"ertain situations.57L

o determine %hether there is #ro a le "ause that res#ondents "ommitted"o#yri'ht infrin'ement, a re$ie% of the elements of the "rime, in"ludin' thee>istin' fa"ts, is reBuired.

D

& S C N "laims that ne%s foota'e is su !e"t to "o#yri'ht and #rohi ited useof "o#yri'hted material is #unisha le under the 4ntelle"tual ro#erty Code. 4tar'ues that the ne% foota'e is not a 5ne%s%orthy e$ent5 ut 5merely an

a""ount of the arri$al of &n'elo dela Cru- in the hili##ines X the latterein' the ne%s%orthy e$ent5: 76

o e "lear, it is the e$ent itself or the arri$al of &n'elo dela Cru- %hi"h is not"o#yri'hta le e"ause that is the ne%s%orthy e$ent. ?o%e$er, any foota'e"reated from the e$ent itself, in this "ase the arri$al of &n'elo dela Cru-, areintelle"tual "reations %hi"h are "o#yri'hta le. hus, the foota'e "reated y& S C N durin' the arri$al of &n'elo dela Cru-, %hi"h in"ludes thestatements of =indo &m#aro, are "o#yri'hta le and #rote"ted y the la%s on"o#yri'ht. 77

n the other hand, res#ondents ar'ue that & S C N s ne%s foota'e of&n'elo dela Cru- s arri$al is not "o#yri'hta le or su !e"t to #rote"tion:

Certainly, the arri$al of &n'elo ;d<ela Cru-, %hi"h aroused #u li" attentionand the "ons"iousness of the ili#ino #eo#le %ith re'ard to their "ountrymen,

Fs %or9in' in forei'n "ountries and ho% the hili##ine 'o$ernmentres#onds to the issues "on"ernin' them, is 5ne%s5. here is no in'enuity orin$enti$eness added in the said ne%s foota'e. he $ideo foota'e of this











5ne%s5 is not "o#yri'hta le y any le'al standard as fa"ts of e$eryday lifede#i"ted in the ne%s and items of #ress information is #art of the #u li"domain. 78 (Em#hasis in the ori'inal)

he ne%s foota'e is "o#yri'hta le.

he 4ntelle"tual ro#erty Code is "lear a out the ri'hts a orded to authors of$arious 9inds of %or9. Knder the Code, 5%or9s are #rote"ted y the sole fa"tof their "reation, irres#e"ti$e of their mode or form of e>#ression, as %ell asof their "ontent, Buality and #ur#ose.5 7/ hese in"lude 5;a<udio$isual %or9sand "inemato'ra#hi" %or9s and %or9s #rodu"ed y a #ro"ess analo'ous to"inemato'ra#hy or any #ro"ess for ma9in' audio$isual re"ordin's.5 8+

Contrary to the old "o#yri'ht la%, 81 the 4ntelle"tual ro#erty Code does notreBuire re'istration of the %or9 to fully re"o$er in an infrin'ement suit.Ne$ertheless, oth "o#yri'ht la%s #ro$ide that "o#yri'ht for a %or9 is

a"Buired y an intelle"tual "reator from the moment of "reation.8

4t is true that under Se"tion 17L of the 4ntelle"tual ro#erty Code, 5ne%s ofthe day and other mis"ellaneous fa"ts ha$in' the "hara"ter of mere items of#ress information5 are "onsidered un#rote"ted su !e"t matter. 83 ?o%e$er,the Code does not state that e>#ression of the ne%s of the day, #arti"ularly%hen it under%ent a "reati$e #ro"ess, is not entitled to #rote"tion.

&n idea or e$ent must e distin'uished from the e>#ression of that idea ore$ent. &n idea has een li9ened to a 'host in that it 5must e s#o9en to alittle efore it %ill e>#lain itself.5 8* 4t is a "on"e#t that has eluded e>a"t le'al

de nition.8L

o 'et a etter 'ras# of the idea@e>#ression di"hotomy, theetymolo'y of the term 5idea5 is tra"ed:

he %ord 5idea5 is deri$ed from a Gree9 term, meanin' 5a form, the loo9 ora##earan"e of a thin' as o##osed to its reality, from idein, to see.5 4n the

imaeus, lato sa% ideas as eternal #aradi'ms, inde#endent o !e"ts to %hi"hthe di$ine demiur'e loo9s as #atterns in formin' the %orld. his %as latermodi ed to the reli'ious "on"e#tion of ideas as the thou'hts of God. 54t is nota $ery lon' ste# to e>tend the term Uidea to "o$er #atterns, lue#rints, or#lans in anyone0s mind, not only in God s.5 he %ord entered the ren"h andEn'lish $erna"ular in the 16++s and #ossessed t%o meanin's. he rst %asthe latoni" meanin' of a #erfe"t e>em#lar or #aradi'm. he se"ond, %hi"h#ro a ly has its ori'in %ith =es"artes, is of a mental "on"e#t or ima'e or,more roadly, any o !e"t of the mind %hen it is a"ti$e. !e"ts of thou'htmay e>ist inde#endently. he sun e>ists (#ro a ly) efore and after you thin9of it. ut it is also #ossi le to thin9 of thin's that ha$e ne$er e>isted, su"h asa uni"orn or e'asus. ohn o"9e de ned ideas $ery "om#rehensi$ely, toin"lude: all o !e"ts of the mind. an'ua'e %as a %ay of translatin' thein$isi le, hidden ideas that ma9e u# a #erson s thou'hts into the e>ternal,



















#er"e#ti le %orld of arti"ulate sounds and $isi le %ritten sym ols that others"an understand. 86 (Citations omitted) here is no one le'al de nition of5idea5 in this !urisdi"tion. he term 5idea5 is mentioned only on"e in the4ntelle"tual ro#erty Code. 87 4n oaBuin, r. $. =rilon, 88 a tele$ision format (i.e.,a datin' sho% format) is not "o#yri'hta le under Se"tion of residential

=e"ree No. */A8/

it is a mere "on"e#t:.=. No. */, Y , in enumeratin' %hat are su !e"t to "o#yri'ht, refers tonished %or9s and not to "on"e#ts. he "o#yri'ht does not e>tend to an

idea, #ro"edure, #ro"ess, system, method of o#eration, "on"e#t, #rin"i#le, ordis"o$ery, re'ardless of the form in %hi"h it is des"ri ed, e>#lained,illustrated, or em odied in su"h %or9. hus, the ne% 4N E EC K&

R ER I C =E ?E ?4 4 4NES #ro$ides:

SEC. 17L. Kn#rote"ted Su !e"t 2atter.XNot%ithstandin' the #ro$isions ofSe"tions 17 and 173, no #rote"tion shall e>tend, under this la%, to any idea,

#ro"edure, system, method or o#eration, "on"e#t, #rin"i#le, dis"o$ery ormere data as su"h, e$en if they are e>#ressed, e>#lained, illustrated orem odied in a %or9A ne%s of the day and other mis"ellaneous fa"ts ha$in'the "hara"ter of mere items of #ress informationA or any oJ"ial te>t of ale'islati$e, administrati$e or le'al nature, as %ell as any oJ"ial translationthereof.

Fhat then is the su !e"t matter of #etitioners "o#yri'htW his Court is of theo#inion that #etitioner 4 s "o#yri'ht "o$ers audio $isual re"ordin's of ea"he#isode of Rhoda and 2e, as fallin' %ithin the "lass of %or9s mentioned in

.=. */, Y (2),to %it:

Cinemato'ra#hi" %or9s and %or9s #rodu"ed y a #ro"ess analo'ous to"inemato'ra#hy or any #ro"ess for ma9in' audio $isual re"ordin'sA

he "o#yri'ht does not e>tend to the 'eneral "on"e#t or format of its datin''ame sho%. &""ordin'ly, y the $ery nature of the su !e"t of #etitioner 4 s"o#yri'ht, the in$esti'atin' #rose"utor should ha$e the o##ortunity to"om#are the $ideota#es of the t%o sho%s.

2ere des"ri#tion y %ords of the 'eneral format of the t%o datin' 'amesho%s is insuJ"ientA the #resentation of the master $ideota#e in e$iden"e%as indis#ensa le to the determination of the e>isten"e of #ro a le "ause.&s a#tly o ser$ed y res#ondent Se"retary of usti"e:

& tele$ision sho% in"ludes more than mere %ords "an des"ri e e"ause itin$ol$es a %hole s#e"trum of $isuals and e e"ts, $ideo and audio, su"h thatno similarity or dissimilarity may e found y merely des"ri in' the 'eneral"o#yri'ht@format of oth datin' 'ame sho%s. /+ (Em#hasis su##lied, "itationsomitted)













4deas "an e either a stra"t or "on"rete. /1 4t is the "on"rete ideas that are'enerally referred to as e>#ression:

he %ords 5a stra"t5 and 5"on"rete5 arise in many "ases dealin' %ith theidea@e>#ression distin"tion. he Ni"hols "ourt, for e>am#le, found that the

defendant s lm did not infrin'e the #lainti s #lay e"ause it %as 5too'enerali-ed an a stra"tion from %hat #lainti %rote . . . only a #art of herideas.5 4n Ei"hel $. 2ar"in, the "ourt said that authors may e>#loit fa"ts,e>#erien"es, eld of thou'ht, and 'eneral ideas found in another s %or9,5#ro$ided they do not su stantially "o#y a "on"rete form, in %hi"h the"ir"umstan"es and ideas ha$e een de$elo#ed, arran'ed, and #ut intosha#e.5 ud'e ?and, in National Comi"s u li"ations, 4n". $. a%"ett

u li"ations, 4n". said that 5no one infrin'es, unless he des"ends so far into%hat is "on"rete as to in$ade. . . Ue>#ression. 5

hese "ases seem to e distin'uishin' 5a stra"t5 ideas from 5"on"rete5

tan'i le em odiments of these a stra"tions that may e termed e>#ression.?o%e$er, if the "on"rete form of a %or9 means more than the literale>#ression "ontained %ithin it, it is diJ"ult to determine %hat is meant y5"on"rete.5 Fe ster0s Ne% %entieth Century =i"tionary of the En'lish

an'ua'e #ro$ides se$eral meanin's for the %ord "on"rete. hese in"lude:5ha$in' a material, #er"e#ti le e>isten"eA of, elon'in' to, or "hara"teri-ed

y thin's or e$ents that "an e #er"ei$ed y the sensesA realA a"tualA5 and5referrin' to a #arti"ularA s#e"i ", not 'eneral or a stra"t.5 /

4n earl O =ean ( hil.), 4n"or#orated $. Shoemart, 4n"or#orated, /3 this "ourt,"itin' the &meri"an "ase of a9er $. Selden, distin'uished "o#yri'ht from

#atents and illustrated ho% an idea or "on"e#t is di erent from thee>#ression of that idea:

4n the oft "ited "ase of a9er $s. Selden, the Knited States Su#reme Courtheld that only the e>#ression of an idea is #rote"ted y "o#yri'ht, not theidea itself. 4n that "ase, the #lainti held the "o#yri'ht of a oo9 %hi"he>#ounded on a ne% a""ountin' system he had de$elo#ed. he #u li"ationillustrated lan9 forms of led'ers utili-ed in su"h a system. he defendantre#rodu"ed forms similar to those illustrated in the #lainti s "o#yri'hted

oo9. he KS Su#reme Court ruled that:

5 here is no dou t that a %or9 on the su !e"t of oo9 9ee#in', thou'h onlye>#lanatory of %ell 9no%n systems, may e the su !e"t of a "o#yri'htA ut,then, it is "laimed only as a oo9. > > > ut there is a "lear distin"tion

et%een the oo9s, as su"h, and the art, %hi"h it is, intended to illustrate. he mere statement of the #ro#osition is so e$ident that it reBuires hardlyany ar'ument to su##ort it. he same distin"tion may e #redi"ated of e$eryother art as %ell as that of oo99ee#in'.









& treatise on the "om#osition and use of medi"ines, e they old or ne%A onthe "onstru"tion and use of #lou'hs or %at"hes or "hurnsA or on the mi>tureand a##li"ation of "olors for #aintin' or dyein'A or on the mode of dra%in'lines to #rodu"e the e e"t of #ers#e"ti$e, %ould e the su !e"t of "o#yri'htA

ut no one %ould "ontend that the "o#yri'ht of the treatise %ould 'i$e the

e>"lusi$e ri'ht to the art or manufa"ture des"ri ed therein. he "o#yri'ht ofthe oo9, if not #irated from other %or9s, %ould e $alid %ithout re'ard tothe no$elty or %ant of no$elty of its su !e"t matter. he no$elty of the art orthin' des"ri ed or e>#lained has nothin' to do %ith the $alidity of the"o#yri'ht. o 'i$e to the author of the oo9 an e>"lusi$e #ro#erty in the artdes"ri ed therein, %hen no e>amination of its no$elty has e$er een oJ"iallymade, %ould e a sur#rise and a fraud u#on the #u li". hat is the #ro$in"eof letters #atent, not of "o#yri'ht. he "laim to an in$ention of dis"o$ery ofan art or manufa"ture must e su !e"ted to the e>amination of the atent

J"e efore an e>"lusi$e ri'ht therein "an e o tainedA and a #atent fromthe 'o$ernment "an only se"ure it.

he di eren"e et%een the t%o thin's, letters #atent and "o#yri'ht, may eillustrated y referen"e to the su !e"ts !ust enumerated. a9e the "ase ofmedi"ines. Certain mi>tures are found to e of 'reat $alue in the healin' art.4f the dis"o$erer %rites and #u lishes a oo9 on the su !e"t (as re'ular#hysi"ians 'enerally do), he 'ains no e>"lusi$e ri'ht to the manufa"ture andsale of the medi"ineA he 'i$es that to the #u li". 4f he desires to a"Buire su"he>"lusi$e ri'ht, he must o tain a #atent for the mi>ture as a ne% art,manufa"ture or "om#osition of matter. ?e may "o#yri'ht his oo9, if he#leasesA ut that only se"ures to him the e>"lusi$e ri'ht of #rintin' and#u lishin' his oo9. So of all other in$entions or dis"o$eries.

he "o#yri'ht of a oo9 on #ers#e"ti$e, no matter ho% many dra%in's andillustrations it may "ontain, 'i$es no e>"lusi$e ri'ht to the modes of dra%in'des"ri ed, thou'h they may ne$er ha$e een 9no%n or used efore. y#u lishin' the oo9 %ithout 'ettin' a #atent for the art, the latter is 'i$en tothe #u li".

. . . .

No%, %hilst no one has a ri'ht to #rint or #u lish his oo9, or any material#art thereof, as a oo9 intended to "on$ey instru"tion in the art, any #ersonmay #ra"ti"e and use the art itself %hi"h he has des"ri ed and illustratedtherein. he use of the art is a totally di erent thin' from a #u li"ation of the

oo9 e>#lainin' it. he "o#yri'ht of a oo9 on oo99ee#in' "annot se"urethe e>"lusi$e ri'ht to ma9e, sell and use a""ount oo9s #re#ared u#on the#lan set forth in su"h oo9. Fhether the art mi'ht or mi'ht not ha$e een#atented, is a Buestion, %hi"h is not efore us. 4t %as not #atented, and iso#en and free to the use of the #u li". &nd, of "ourse, in usin' the art, the



ruled lines and headin's of a""ounts must ne"essarily e used as in"ident toit.

he #lausi ility of the "laim #ut for%ard y the "om#lainant in this "asearises from a "onfusion of ideas #rodu"ed y the #e"uliar nature of the art

des"ri ed in the oo9s, %hi"h ha$e een made the su !e"t of "o#yri'ht. 4ndes"ri in' the art, the illustrations and dia'rams em#loyed ha##ened to"orres#ond more "losely than usual %ith the a"tual %or9 #erformed y theo#erator %ho uses the art. > > > he des"ri#tion of the art in a oo9, thou'hentitled to the ene t of "o#yri'ht, lays no foundation for an e>"lusi$e "laimto the art itself. he o !e"t of the one is e>#lanationA the o !e"t of the otheris use. he former may e se"ured y "o#yri'ht. he latter "an only ese"ured, if it "an e se"ured at all, y letters #atent.5 /* (Em#hasis su##lied)

Ne%s or the e$ent itself is not "o#yri'hta le. ?o%e$er, an e$ent "an e"a#tured and #resented in a s#e"i " medium. &s re"o'ni-ed y this "ourt in

oaBuin, tele$ision 5in$ol$es a %hole s#e"trum of $isuals and e e"ts, $ideoand audio.5 /L Ne%s "o$era'e in tele$ision in$ol$es framin' shots, usin'ima'es, 'ra#hi"s, and sound e e"ts. /6 4t in$ol$es "reati$e #ro"ess andori'inality. ele$ision ne%s foota'e is an e>#ression of the ne%s.

4n the Knited States, a line of "ases d%elt on the #ossi ility of tele$isionne%s"asts to e "o#yri'hted. /7 2ost of these "ases fo"used on #ri$ateindi$iduals sale or resale of ta#es of ne%s road"asts. ConHi"tin' de"isions%ere rendered y its "ourts. Note%orthy, ho%e$er, is the =istri"t Court s#ronoun"ement in a"i " O Southern Co. $. =un"an, /8 %hi"h in$ol$es a Ne%s2onitorin' Ser$i"e s $ideota#in' and sale of F 4& D s ne%s road"asts:

4t is a>iomati" that "o#yri'ht #rote"tion does not e>tend to ne%s 5e$ents5 orthe fa"ts or ideas %hi"h are the su !e"t of ne%s re#orts. 2iller $. Kni$ersalCity Studios, 4n"., 6L+ . d 136L, 1368 (Lth Cir. 1/81)A Fain%ri'ht Se"urities,4n". $. Fall Street rans"ri#t Cor#., LL8 . d /1, /L ( d Cir. 1/77), "ert.denied, *3* K.S. 1+1*, /8 S.Ct. 73+, L* .Ed. d 7L/ (1/78). ut it is eBually%ell settled that "o#yri'ht #rote"tion does e>tend to the re#orts themsel$es,as distin'uished from the su stan"e of the information "ontained in there#orts. Fain%ri'ht, LL8 . d at /LA 4nternational Ne%s Ser$i"e $. &sso"iated

ress, *8 K.S. 1L, 3/ S.Ct. 68, 63 .Ed. 11 (1/18)A see Chi"a'o Re"ord?erald Co. $. ri une &ssn., 7L . 7/7 (7th Cir.1/ 1)A 1 Nimmer on Co#yri'htY .11; < (1/83). Co#yri'ht #rote"ts the manner of e>#ression of ne%sre#orts, 5the #arti"ular form or "ollo"ation of %ords in %hi"h the %riter has"ommuni"ated it.5 4nternational Ne%s Ser$i"e, *8 K.S. at 3*, 3/ S.Ct. at7+. Su"h #rote"tion e>tends to ele"troni" ne%s re#orts as %ell as %rittenre#orts. See17 K.S.C. Y 1+ (a) (L), (6), and (7)A see also 4o%a State Kni$ersityResear"h oundations, 4n". $. &meri"an road"astin' Cos., 6 1 . d L7, 61( d Cir. 1/8+). // (Em#hasis su##lied)















he idea@e>#ression di"hotomy has lon' een su !e"t to de ate in the eldof "o#yri'ht la%. & olishin' the di"hotomy has een #ro#osed, in that non#rote"ti ility of ideas should e re e>amined, if not stri"9en, from de"isionsand the la%:

4f the underlyin' #ur#ose of the "o#yri'ht la% is the dual one e>#ressed yord 2ans eld, the only e>"use for the "ontinuan"e of the idea e>#ressiontest as a !udi"ial standard for determinin' #rote"ti ility %ould e that it %asor "ould e a truly useful method of determinin' the #ro#er alan"e et%eenthe "reator s ri'ht to #ro t from his %or9 and the #u li"0s ri'ht that the5#ro'ress of the arts not e retarded.5

. . . ;&<s used in the #resent day "onte>t;,< the di"hotomy has little or norelationshi# to the #oli"y %hi"h it should e e"tuate. 4ndeed, all too often thes%ee#in' lan'ua'e of the "ourts re'ardin' the non #rote"ti ility of ideas'i$es the im#ression that this is of itself a #oli"y of the la%, instead of merely

a "lumsy and outdated tool to a"hie$e a mu"h more asi" end.1++

he idea@e>#ression di"hotomy is a "om#le> matter if one is tryin' todetermine %hether a "ertain material is a "o#y of another. 1+1 his di"hotomy%ould e more rele$ant in determinin', for instan"e, %hether a sta'e #lay%as an infrin'ement of an author s oo9 in$ol$in' the same "hara"ters andsettin'. 4n this "ase, ho%e$er, res#ondents admitted that the material underre$ie% X %hi"h is the su !e"t of the "ontro$ersy X is an e>a"t "o#y of theori'inal. Res#ondents did not su !e"t & S C N s foota'e to any editin' oftheir o%n. he ne%s foota'e did not under'o any transformation %here thereis a need to tra"9 elements of the ori'inal.

?a$in' esta lished the #rote"ti le nature of ne%s foota'e, %e no% dis"ussthe "on"omitant ri'hts a""orded to authors. he authors of a %or9 are'ranted se$eral ri'hts in relation to it, in"ludin' "o#yri'ht or e"onomi"ri'hts:

SEC 4 N 177. Co#yri'ht or E"onomi" Ri'hts. X Su !e"t to the #ro$isions ofCha#ter D444, "o#yri'ht or e"onomi" ri'hts shall "onsist of the e>"lusi$e ri'htto "arry out, authori-e or #re$ent the follo%in' a"ts:

177.1. Re#rodu"tion of the %or9 or su stantial #ortion of the %or9A

177. . =ramati-ation, translation, ada#tation, a rid'ment,arran'ement or other transformation of the %or9A

177.3. he rst #u li" distri ution of the ori'inal and ea"h "o#y of the%or9 y sale or other forms of transfer of o%nershi#A







177.*. Rental of the ori'inal or a "o#y of an audio$isual or"inemato'ra#hi" %or9, a %or9 em odied in a sound re"ordin', a"om#uter #ro'ram, a "om#ilation of data and other materials or amusi"al %or9 in 'ra#hi" form, irres#e"ti$e of the o%nershi# of theori'inal or the "o#y %hi"h is the su !e"t of the rentalA (n)

177.L. u li" dis#lay of the ori'inal or a "o#y of the %or9A

177.6. u li" #erforman"e of the %or9A and

177.7. ther "ommuni"ation to the #u li" of the %or9.(Se". L, . =. No.*/a) (Em#hasis su##lied)

Knder Se"tion 11 of the 4ntelle"tual ro#erty Code, road"astin'or'ani-ations are 'ranted a more s#e"i " set of ri'hts "alled related ornei'h orin' ri'hts:

SEC 4 N 11. S"o#e of Ri'ht. X Su !e"t to the #ro$isions of Se"tion 1 ,road"astin' or'ani-ations shall en!oy the e>"lusi$e ri'ht to "arry out,

authori-e or #re$ent any of the follo%in' a"ts:

11.1. he re road"astin' of their road"astsA

11. . he re"ordin' in any manner, in"ludin' the ma9in' of lms orthe use of $ideo ta#e, of their road"asts for the #ur#ose of"ommuni"ation to the #u li" of tele$ision road"asts of the sameA and

11.3. he use of su"h re"ords for fresh transmissions or for freshre"ordin'. (Se". L , .=. No. */) (Em#hasis su##lied)

Se"tion 1 of the Code #ro$ides:

C?& ER D424 & 4 NS N R EC 4 N

Se"tion 1 . imitations on Ri'hts. Se"tions +3, +8 and +/ shall nota##ly %here the a"ts referred to in those Se"tions are related to:

1 .1. he use y a natural #erson e>"lusi$ely for his o%n #ersonal#ur#osesA

1 . . Ksin' short e>"er#ts for re#ortin' "urrent e$entsA

1 .3. Kse solely for the #ur#ose of tea"hin' or for s"ienti " resear"hAand



1 .*. air use of the road"ast su !e"t to the "onditions under Se"tion18L. (Se". **, .=. No. */a)

he Code de nes %hat road"astin' is and %ho road"astin' or'ani-ationsin"lude:

+ .7. 5 road"astin'5 means the transmission y %ireless means forthe #u li" re"e#tion of sounds or of ima'es or of re#resentationsthereofA su"h transmission y satellite is also 5 road"astin'5 %here themeans for de"ry#tin' are #ro$ided to the #u li" y the road"astin'or'ani-ation or %ith its "onsentA

+ .8. 5 road"astin' or'ani-ation5 shall in"lude a natural #erson or a !uridi"al entity duly authori-ed to en'a'e in road"astin';.<

=e$elo#ments in te"hnolo'y, in"ludin' the #ro"ess of #reser$in' on"e

e#hemeral %or9s and disseminatin' them, resulted in the need to #ro$ide ane% 9ind of #rote"tion as distin'uished from "o#yri'ht. 1+ he desi'nation5nei'h orin' ri'hts5 %as a re$iated from the #hrase 5ri'hts nei'h orin' to"o#yri'ht.5 1+3 Nei'h orin' or related ri'hts are of eBual im#ortan"e %ith"o#yri'ht as esta lished in the di erent "on$entions "o$erin' oth 9inds ofri'hts. 1+*

Se$eral treaties deal %ith nei'h orin' or related ri'hts of "o#yri'ht. 1+L hemost #rominent of these is the 54nternational Con$ention for the rote"tion of

erformers, rodu"ers of hono'rams and road"astin' r'ani-ations5(Rome Con$ention). 1+6

he Rome Con$ention #rote"ts the ri'hts of road"astin' or'ani-ations inrelation to their road"asts. &rti"le 444 of the Rome Con$ention enumeratesthe minimum ri'hts a""orded to road"astin' or'ani-ations:

&rti"le 13

2inimum Ri'hts for road"astin' r'ani-ations

road"astin' or'anisations shall en!oy the ri'ht to authori-e or #rohi it:

(a) the re road"astin' of their road"astsA

( ) the >ation of their road"astsA

(") the re#rodu"tion:

(i) of >ations, made %ithout their "onsent, of their road"astsA













(ii) of >ations, made in a""ordan"e %ith the #ro$isions of &rti"le1L, of their road"asts, if the re#rodu"tion is made for #ur#osesdi erent from those referred to in those #ro$isionsA

(d) the "ommuni"ation to the #u li" of their tele$ision road"asts if

su"h "ommuni"ation is made in #la"es a""essi le to the #u li" a'ainst#ayment of an entran"e feeA it shall e a matter for the domesti" la%of the State %here #rote"tion of this ri'ht is "laimed to determine the"onditions under %hi"h it may e e>er"ised.

Fith re'ard to the nei'h orin' ri'hts of a road"astin' or'ani-ation in this !urisdi"tion, this "ourt has dis"ussed the di eren"e et%een road"astin'and re road"astin':

Se"tion + .7 of the 4 Code de nes road"astin' as 5the transmission y%ireless means for the #u li" re"e#tion of sounds or of ima'es or of

re#resentations thereofA su"h transmission y satellite is also U road"astin'%here the means for de"ry#tin' are #ro$ided to the #u li" y theroad"astin' or'ani-ation or %ith its "onsent.5

n the other hand, re road"astin' as de ned in &rti"le 3(') of the4nternational Con$ention for the rote"tion of erformers, rodu"ers of

hono'rams and road"astin' r'ani-ations, other%ise 9no%n as the 1/61Rome Con$ention, of %hi"h the Re#u li" of the hili##ines is a si'natory, is5the simultaneous road"astin' y one road"astin' or'ani-ation of the

road"ast of another road"astin' or'ani-ation.5

. . . .

Knder the Rome Con$ention, re road"astin' is 5the simultaneousroad"astin' y one road"astin' or'ani-ation of the road"ast of anotherroad"astin' or'ani-ation.5 he For9in' a#er #re#ared y the Se"retariat of

the Standin' Committee on Co#yri'ht and Related Ri'hts de nesroad"astin' or'ani-ations as 5entities that ta9e the nan"ial and editorial

res#onsi ility for the sele"tion and arran'ement of, and in$estment in, thetransmitted "ontent.5 1+7 (Em#hasis in the ori'inal, "itations omitted)

road"astin' or'ani-ations are entitled to se$eral ri'hts and to the#rote"tion of these ri'hts under the 4ntelle"tual ro#erty Code. Res#ondentsar'ument that the su !e"t ne%s foota'e is not "o#yri'hta le is erroneous.

he Court of &##eals, in its assailed =e"ision, "orre"tly re"o'ni-ed thee>isten"e of & S C N s "o#yri'ht o$er the ne%s foota'e:

Surely, #ri$ate res#ondent has a "o#yri'ht of its ne%s "o$era'e. Seemin'ly,for airin' said $ideo feed, #etitioner G2& is lia le under the #ro$isions of the





4ntelle"tual ro#erty Code, %hi"h %as ena"ted #ur#osely to #rote"t "o#yri'hto%ners from infrin'ement. 1+8

Ne%s as e>#ressed in a $ideo foota'e is entitled to "o#yri'ht #rote"tion.road"astin' or'ani-ations ha$e not only "o#yri'ht on ut also nei'h orin'

ri'hts o$er their road"asts. Co#yri'hta ility of a %or9 is di erent from fairuse of a %or9 for #ur#oses of ne%s re#ortin'.

D4

& S C N assails the Court of &##eals rulin' that the foota'e sho%n y G2&7 falls under the s"o#e of Se"tion 1 . and 1 .* of the 4ntelle"tual

ro#erty Code:

he e$iden"e on re"ord, as %ell as the dis"ussions a o$e, sho% that thefoota'e used y;res#ondents< "ould hardly e "hara"teri-ed as a short

e>"er#t, as it %as aired o$er one and a half minutes.urthermore, the foota'e used does not fall under the "ontem#lation of

Se"tion 1 . of the 4ntelle"tual ro#erty Code. & #lain readin' of the#ro$ision %ould re$eal that "o#yri'hted material referred to in Se"tion 1are short #ortions of an artist s #erforman"e under Se"tion +3, or a#rodu"er s sound re"ordin's under Se"tions +8 and +/. Se"tion 1 doesnot refer to a"tual use of $ideo foota'e of another as its o%n.

he &n'elo dela Cru- foota'e does not fall under the rule on Se"tion 1 .* of the 4ntelle"tual ro#erty Code on fair use of the road"ast.

. . . .

4n determinin' fair use, se$eral fa"tors are "onsidered, in"ludin' the natureof the "o#yri'hted %or9, and the amount and su stantiality of the #ersonused in relation to the "o#yri'hted %or9 as a %hole.

4n the usiness of tele$ision ne%s re#ortin', the nature of the "o#yri'hted%or9 or the $ideo foota'es, are su"h that, foota'e "reated, must e a no$eltyto e a 'ood re#ort. hus, %hen the . . . &n'elo dela Cru- foota'e %as used

y ;res#ondents<, the no$elty of the foota'e %as "learly a e"ted.

2oreo$er, 'i$en that a su stantial #ortion of the &n'elo dela Cru- foota'e%as utili-ed y G2& 7 for its o%n, its use "an hardly e "lassi ed as fair use.

?en"e, ;res#ondents< "ould not e "onsidered as ha$in' used the &n'elodela Cru- ;foota'e< follo%in' the #ro$isions on fair use.





4t is also %orthy to note that the ?onora le Court of &##eals seem to"ontradi"t itself %hen it relied on the #ro$isions of fair use in its assailedrulin's "onsiderin' that it found that the &n'elo dela Cru- foota'e is not"o#yri'hta le, 'i$en that the fair use #resu##oses an e>istin' "o#yri'ht.

hus, it is a##arent that the ndin's of the ?onora le Court of &##eals are

erroneous and ased on %ron' assum#tions.1+/

(Knders"orin' in the ori'inal)n the other hand, res#ondents "ounter that G2& 7 s use of & S C N s ne%s

foota'e falls under fair use as de ned in the 4ntelle"tual ro#erty Code.Res#ondents, "itin' the Court of &##eals =e"ision, ar'ue that a stron'statutory defense ne'ates any ndin' of #ro a le "ause under the samestatute. 11+ he 4ntelle"tual ro#erty Code #ro$ides that fair use ne'atesinfrin'ement.

Res#ondents #oint out that u#on seein' & S C N s re#orter =indo &m#aroon the foota'e, G2& 7 immediately shut o the road"ast. nly $e (L)

se"onds #assed efore the foota'e %as "ut. hey ar'ue that this sho%s thatG2& 7 had no #rior 9no%led'e of & S C N s o%nershi# of the foota'e or %asnoti ed of it. hey "laim that the &n'elo dela Cru- foota'e is "onsidered ashort e>"er#t of an e$ent s 5ne%s5 foota'e and is "o$ered y fair use. 111

Co#yri'ht #rote"tion is not a solute. 11 he 4ntelle"tual ro#erty Code#ro$ides the limitations on "o#yri'ht:

C?& ER D444424 & 4 NS N C IR4G?

Se"tion 18*. imitations on Co#yri'ht. 18*.1. Not%ithstandin' the#ro$isions of Cha#ter D, the follo%in' a"ts shall not "onstitute infrin'ementof "o#yri'ht:

. . . .

18*. . he #ro$isions of this se"tion shall e inter#reted in su"h a %ay as toallo% the %or9 to e used in a manner %hi"h does not "onHi"t %ith thenormal e>#loitation of the %or9 and does not unreasona ly #re!udi"e theri'ht holder0s le'itimate interests.

. . . .

C?& ER D424 & 4 NS N R EC 4 N

Se"tion 1 . imitations on Ri'hts. Se"tions +3, +8 and +/ shall nota##ly %here the a"ts referred to in those Se"tions are related to:











. . . .


. . . .

1 .*. air use of the road"ast su !e"t to the "onditions under Se"tion 18L.(Se". **, .=. No. */a) (Em#hasis su##lied)

he determination of %hat "onstitutes fair use de#ends on se$eral fa"tors.Se"tion 18L of the 4ntelle"tual ro#erty Code states:

SEC 4 N 18L. air Kse of a Co#yri'hted For9. X

18L.1. he fair use of a "o#yri'hted %or9 for "riti"ism, "omment, ne%sre#ortin', tea"hin' in"ludin' multi#le "o#ies for "lassroom use, s"holarshi#,

resear"h, and similar #ur#oses is not an infrin'ement of "o#yri'ht. . . . 4ndeterminin' %hether the use made of a %or9 in any #arti"ular "ase is fairuse, the fa"tors to e "onsidered shall in"lude:

a. he #ur#ose and "hara"ter of the use, in"ludin' %hether su"h use isof a "ommer"ial nature or is for non #ro t edu"ational #ur#osesA

. he nature of the "o#yri'hted %or9A

". he amount and su stantiality of the #ortion used in relation to the"o#yri'hted %or9 as a %holeA and

d. he e e"t of the use u#on the #otential mar9et for or $alue of the"o#yri'hted %or9. Res#ondents alle'e that the ne%s foota'e %as only

$e (L) se"onds lon', thus fallin' under fair use. & S C N elies this"ontention and ar'ues that the foota'e aired for t%o ( ) minutes and*+ se"onds. 113 &""ordin' to the Court of &##eals, the #arties admittedthat only $e (L) se"onds of the ne%s foota'e %as road"asted yG2& 7. 11*

his "ourt de ned fair use as 5a#ri$ile'e to use the "o#yri'hted material in areasona le manner %ithout the "onsent of the "o#yri'ht o%ner or as "o#yin'the theme or ideas rather than their e>#ression.5 11L air use is an e>"e#tionto the "o#yri'ht o%ner s mono#oly of the use of the %or9 to a$oid stiHin'5the $ery "reati$ity %hi"h that la% is desi'ned to foster.5 116

=eterminin' fair use reBuires a##li"ation of the four fa"tor test. Se"tion 18Lof the 4ntelle"tual ro#erty Code lists four (*) fa"tors to determine if there%as fair use of a "o#yri'hted %or9:











a. he #ur#ose and "hara"ter of the use, in"ludin' %hether su"h use isof a "ommer"ial nature or is for non #ro t edu"ational #ur#osesA



d. he e e"t of the use u#on the #otential mar9et for or $alue of the"o#yri'hted %or9.

irst, the #ur#ose and "hara"ter of the use of the "o#yri'hted material mustfall under those listed in Se"tion 18L, thus: 5"riti"ism, "omment, ne%sre#ortin', tea"hin' in"ludin' multi#le "o#ies for "lassroom use, s"holarshi#,resear"h, and similar #ur#oses.5 117 he #ur#ose and "hara"ter reBuirement isim#ortant in $ie% of "o#yri'ht s 'oal to #romote "reati$ity and en"oura'e

"reation of %or9s. ?en"e, "ommer"ial use of the "o#yri'hted %or9 "an e%ei'hed a'ainst fair use.

he 5transformati$e test5 is 'enerally used in re$ie%in' the #ur#ose and"hara"ter of the usa'e of the "o#yri'hted %or9. 118 his "ourt must loo9 into%hether the "o#y of the %or9 adds 5ne% e>#ression, meanin' or messa'e5 totransform it into somethin' else. 11/ 52eta use5 "an also o""ur %ithoutne"essarily transformin' the "o#yri'hted %or9 used. 1 +

Se"ond, the nature of the "o#yri'hted %or9 is si'ni "ant in de"idin' %hetherits use %as fair. 4f the nature of the %or9 is more fa"tual than "reati$e, then

fair use %ill e %ei'hed in fa$or of the user.

hird, the amount and su stantiality of the #ortion used is im#ortant todetermine %hether usa'e falls under fair use. &n e>a"t re#rodu"tion of a"o#yri'hted %or9, "om#ared to a small #ortion of it, "an result in the"on"lusion that its use is not fair. here may also e "ases %here, thou'h theentirety of the "o#yri'hted %or9 is used %ithout "onsent, its #ur#osedetermines that the usa'e is still fair. 1 1 or e>am#le, a #arody usin' asu stantial amount of "o#yri'hted %or9 may e #ermissi le as fair use aso##osed to a "o#y of a %or9 #rodu"ed #urely for e"onomi" 'ain. astly, thee e"t of the use on the "o#yri'hted %or9 s mar9et is also %ei'hed for ora'ainst the user. 4f this "ourt nds that the use had or %ill ha$e a ne'ati$eim#a"t on the "o#yri'hted %or9 s mar9et, then the use is deemed unfair.

he stru"ture and nature of road"astin' as a usiness reBuires assi'ned$alues for ea"h se"ond of road"ast or airtime. 4n most "ases, road"astin'or'ani-ations 'enerate re$enue throu'h sale of time or timeslots toad$ertisers, %hi"h, in turn, is ased on mar9et share: 1 n"e a ne%s

road"ast has een transmitted, the road"ast e"omes relati$ely %orthless















to the station. 4n the "ase of the aerial road"asters, ad$ertisin' sales'enerate most of the #ro ts deri$ed from ne%s re#orts. &d$ertisin' ratesare, in turn, 'o$erned y mar9et share. 2ar9et share is determined y thenum er of #eo#le %at"hin' a sho% at any #arti"ular time, relati$e to total$ie%ers at that time. Ne%s is y nature time limited, and so re road"asts

are 'enerally of little %orth e"ause they dra% fe% $ie%ers. Ne%s"asts"om#ete for mar9et share y #resentin' their ne%s in an a##ealin' formatthat %ill "a#ture a loyal audien"e. ?en"e, the #rimary reason for "o#yri'htin'ne%s"asts y road"asters %ould seem to e to #re$ent "om#etin' stationsfrom re road"astin' "urrent ne%s from the station %ith the est "o$era'e ofa #arti"ular ne%s item, thus misa##ro#riatin' a #ortion of the mar9et share.

f "ourse, in the real %orld there are e>"e#tions to this #erfe"t e"onomi"$ie%. ?o%e$er, there are also many "a$eats %ith these e>"e#tions. &"ommon e>"e#tion is that some stations re road"ast the ne%s of others. he"a$eat is that 'enerally, the t%o stations are not "om#etin' for mar9et

share. CNN, for e>am#le, often ma9es ne%s stories a$aila le to lo"alroad"asters. irst, the lo"al road"aster is often not aJliated %ith a net%or9(hen"e its need for more "om#rehensi$e #ro'rammin'), "on nin' any#ossi le "om#etition to a small 'eo'ra#hi"al area. Se"ond, the lo"al

road"aster is not in "om#etition %ith CNN. 4ndi$iduals %ho do not ha$e"a le D (or a satellite dish %ith de"oder) "annot re"ei$e CNNA thereforethere is no "om#etition. . . . hird, CNN sells the ri'ht of re road"ast to thelo"al stations. ed urner, o%ner of CNN, does not ha$e irst &mendmentfreedom of a""ess ar'ument foremost on his mind. (Else he %ould 'i$ee$eryone free "a le D so e$eryone "ould 'et CNN.) ?e is in the usiness fora #ro t. Gi$in' a%ay resour"es does not a #ro t ma9e. 1 3 (Em#hasis

su##lied)

he hi'h $alue a orded to limited time #eriods is also seen in other media. 4nso"ial media site 4nsta'ram, users are allo%ed to #ost u# to only 1L se"ondsof $ideo. 1 * 4n short $ideo sharin' %e site Dine, 1 L users are allo%ed a shorter#eriod of si> (6) se"onds #er #ost. he mo ile a##li"ation 1 Se"ond E$erydayta9es it further y "a#turin' and stit"hin' one (1) se"ond of $ideo foota'eta9en daily o$er a s#an of a "ertain #eriod. 1 6

Fhether the alle'ed $e se"ond foota'e may e "onsidered fair use is amatter of defense. Fe em#hasi-e that the "ase in$ol$es determination of#ro a le "ause at the #reliminary in$esti'ation sta'e. Raisin' the defense offair use does not automati"ally mean that no infrin'ement %as "ommitted.

he in$esti'atin' #rose"utor has full dis"retion to e$aluate the fa"ts,alle'ations, and e$iden"e durin' #reliminary in$esti'ation. =efenses raiseddurin' #reliminary in$esti'ation are su !e"t to further #roof and e$aluation

efore the trial "ourt. Gi$en the insuJ"ien"y of a$aila le e$iden"e,determination of %hether the &n'elo dela Cru- foota'e is su !e"t to fair useis etter left to the trial "ourt %here the #ro"eedin's are "urrently #endin'.











G2& 7 s re road"ast of & S C N s ne%s foota'e %ithout the latter s "onsentis not an issue. he mere a"t of re road"astin' %ithout authority from theo%ner of the road"ast 'i$es rise to the #ro a ility that a "rime %as"ommitted under the 4ntelle"tual ro#erty Code.

D44Res#ondents "annot in$o9e the defense of 'ood faith to ar'ue that no#ro a le "ause e>ists.

Res#ondents ar'ue that "o#yri'ht infrin'ement is malum in se, in that5;"<o#yin' alone is not %hat is ein' #rohi ited, ut its in!urious e e"t %hi"h"onsists in the liftin' from the "o#yri'ht o%ners lm or materials, that %erethe result of the latter s "reati$ity, %or9 and #rodu"tions and %ithoutauthority, re#rodu"ed, sold and "ir"ulated for "ommer"ial use to thedetriment of the latter.5 1 7

4nfrin'ement under the 4ntelle"tual ro#erty Code is malum #rohi itum. he4ntelle"tual ro#erty Code is a s#e"ial la%. Co#yri'ht is a statutory "reation:

Co#yri'ht, in the stri"t sense of the term, is #urely a statutory ri'ht. 4t is ane% or inde#endent ri'ht 'ranted y the statute, and not sim#ly a #ree>istin' ri'ht re'ulated y the statute. ein' a statutory 'rant, the ri'hts areonly su"h as the statute "onfers, and may e o tained and en!oyed only %ithres#e"t to the su !e"ts and y the #ersons, and on terms and "onditionss#e"i ed in the statute. 1 8

he 'eneral rule is that a"ts #unished under a s#e"ial la% are malum#rohi itum. 1 / 5&n a"t %hi"h is de"lared malum #rohi itum, mali"e or"riminal intent is "om#letely immaterial.5 13+

4n "ontrast, "rimes mala in se"on"ern inherently immoral a"ts:

Not e$ery "riminal a"t, ho%e$er, in$ol$es moral tur#itude. 4t is for this reasonthat 5as to %hat "rime in$ol$es moral tur#itude, is for the Su#reme Court todetermine5. 4n resol$in' the fore'oin' Buestion, the Court is 'uided y one of the 'eneral rules that "rimes mala in se in$ol$e moral tur#itude, %hile"rimes mala #rohi ita do not, the rationale of %hi"h %as set forth in 5Mari $.

lores,5 to %it:

4t (moral tur#itude) im#lies somethin' immoral in itself, re'ardless of the fa"tthat it is #unisha le y la% or not. 4t must not e merely mala #rohi ita, utthe a"t itself must e inherently immoral. he doin' of the a"t itself, and notits #rohi ition y statute >es the moral tur#itude. 2oral tur#itude does not,ho%e$er, in"lude su"h a"ts as are not of themsel$es immoral ut %hoseille'ality lies in their ein' #ositi$ely #rohi ited. (Em#hasis su##lied)











; hese< 'uidelines nonetheless #ro$ed short of #ro$idin' a "lear "ut solution,for in 4nternational Ri"e Resear"h 4nstitute $. N RC, the Court admitted that it"annot al%ays e as"ertained %hether moral tur#itude does or does not e>ist

y merely "lassifyin' a "rime as malum in se or as malum #rohi itum. hereare "rimes %hi"h are mala in se and yet ut rarely in$ol$e moral tur#itude

and there are "rimes %hi"h in$ol$e moral tur#itude and are mala #rohi itaonly. 4n the nal analysis, %hether or not a "rime in$ol$es moral tur#itude isultimately a Buestion of fa"t and freBuently de#ends on all the "ir"umstan"essurroundin' the $iolation of the statue. 131 (Em#hasis in the ori'inal)

54m#li"it in the "on"e#t of mala in se is that of mens rea.5 13 2ens reaisde ned as 5the non#hysi"al element %hi"h, "om ined %ith the a"t of thea""used, ma9es u# the "rime "har'ed. 2ost freBuently it is the "riminalintent, or the 'uilty mind;.<5 133

Crimes mala in se#re su##ose that the #erson %ho did the felonious a"t had

"riminal intent to do so, %hile "rimes mala #rohi ita do not reBuire9no%led'e or "riminal intent:

4n the "ase of mala in se it is ne"essary, to "onstitute a #unisha le o ense,for the #erson doin' the a"t to ha$e 9no%led'e of the nature of his a"t andto ha$e a "riminal intentA in the "ase of mala #rohi ita, unless su"h %ords as59no%in'ly5 and 5%illfully5 are "ontained in the statute, neither 9no%led'enor "riminal intent is ne"essary. 4n other %ords, a #erson morally Buiteinno"ent and %ith e$ery intention of ein' a la% a idin' "iti-en e"omes a"riminal, and lia le to "riminal #enaltes, if he does an a"t #rohi ited y thesestatutes. 13* (Em#hasis su##lied) ?en"e, 5;i<ntent to "ommit the "rime and

intent to #er#etrate the a"t must e distin'uished. & #erson may not ha$e"ons"iously intended to "ommit a "rimeA ut he did intend to "ommit an a"t,and that a"t is, y the $ery nature of thin's, the "rime itself;.<5 13L Fhen ana"t is #rohi ited y a s#e"ial la%, it is "onsidered in!urious to #u li" %elfare,and the #erforman"e of the #rohi ited a"t is the "rime itself. 136

Dolition, or intent to "ommit the a"t, is di erent from "riminal intent. Dolitionor $oluntariness refers to 9no%led'e of the a"t ein' done. n the otherhand, "riminal intent X %hi"h is di erent from moti$e, or the mo$in' #o%erfor the "ommission of the "rime 137 X refers to the state of mind eyond$oluntariness. 4t is this intent that is ein' #unished y "rimes mala in se.

Knli9e other !urisdi"tions that reBuire intent for a "riminal #rose"ution of"o#yri'ht infrin'ement, the hili##ines does not statutorily su##ort 'oodfaith as a defense. ther !urisdi"tions #ro$ide in their intelle"tual #ro#erty"odes or rele$ant la%s that mens rea, %hether e>#ress or im#lied, is anelement of "riminal "o#yri'ht infrin'ement. 138



















4n Canada, "riminal o enses are "ate'ori-ed under three (3) 9inds: 5the fullmens rea o en"e, meanin' the a""used s a"tual or su !e"ti$e state of mindhas to e #ro$edA stri"t lia ility o en"es %here no mens rea has to e #ro$ed

ut the a""used "an a$oid lia ility if he "an #ro$e he too9 all reasona leste#s to a$oid the #arti"ular e$entA ;and< a solute lia ility o en"es %here

arliament has made it "lear that 'uilt follo%s #roof of the #res"ri ed a"tonly.5 13/ e"ause of the use of the %ord 59no%in'ly5 in Canada s Co#yri'ht&"t, it has een held that "o#yri'ht infrin'ement is a full mens rea o ense. 1*+

4n the Knited States, %illful intent is reBuired for "riminal "o#yri'htinfrin'ement. 1*1 efore the #assa'e of the No Ele"troni" heft &"t, 5"i$il"o#yri'ht infrin'ements %ere $iolations of "riminal "o#yri'ht la%s only if adefendant %illfully infrin'ed a "o#yri'ht Ufor #ur#oses of "ommer"ialad$anta'e or #ri$ate nan"ial 'ain. 5 1* ?o%e$er, the No Ele"troni" heft &"tno% allo%s "riminal "o#yri'ht infrin'ement %ithout the reBuirement of"ommer"ial 'ain. he infrin'in' a"t may or may not e for #ro t. 1*3

here is a di eren"e, ho%e$er, et%een the reBuired lia ility in "i$il"o#yri'ht infrin'ement and that in "riminal "o#yri'ht infrin'ement in theKnited States. Ci$il "o#yri'ht infrin'ement does not reBuire "ul#a ility andem#loys a stri"t lia ility re'ime 1** %here 5la"9 of intention to infrin'e is not adefense to an a"tion for infrin'ement.5 1*L

4n the hili##ines, the 4ntelle"tual ro#erty Code, as amended, #ro$ides forthe #rose"ution of "riminal a"tions for the follo%in' $iolations of intelle"tual#ro#erty ri'hts: Re#etition of 4nfrin'ement of atent (Se"tion 8*)A Ktility2odel (Se"tion 1+8)A 4ndustrial =esi'n (Se"tion 11/)A rademar9 4nfrin'ement

(Se"tion 1LL in relation to Se"tion 17+)A Knfair Com#etition (Se"tion 168 inrelation to Se"tion 17+)A alse =esi'nations of ri'in, alse =es"ri#tion orRe#resentation (Se"tion 16/.1 in relation to Se"tion 17+)A infrin'ement of"o#yri'ht, moral ri'hts, #erformers ri'hts, #rodu"ers ri'hts, and

road"astin' ri'hts (Se"tion 177, 1/3, +3, +8 and 11 in relation toSe"tion 17)A and other $iolations of intelle"tual #ro#erty ri'hts as may ede ned y la%.

he 4ntelle"tual ro#erty Code reBuires stri"t lia ility for "o#yri'htinfrin'ement %hether for a "i$il a"tion or a "riminal #rose"utionA it does notreBuire mens rea or "ul#a: 1*6

SEC 4 N 16. Remedies for 4nfrin'ement. X

16.1. &ny #erson infrin'in' a ri'ht #rote"ted under this la% shall elia le:

a. o an in!un"tion restrainin' su"h infrin'ement. he "ourt mayalso order the defendant to desist from an infrin'ement, amon'



















others, to #re$ent the entry into the "hannels of "ommer"e ofim#orted 'oods that in$ol$e an infrin'ement, immediately after"ustoms "learan"e of su"h 'oods.

. ay to the "o#yri'ht #ro#rietor or his assi'ns or heirs su"h

a"tual dama'es, in"ludin' le'al "osts and other e>#enses, as hemay ha$e in"urred due to the infrin'ement as %ell as the #ro tsthe infrin'er may ha$e made due to su"h infrin'ement, and in#ro$in' #ro ts the #lainti shall e reBuired to #ro$e sales onlyand the defendant shall e reBuired to #ro$e e$ery element of"ost %hi"h he "laims, or, in lieu of a"tual dama'es and #ro ts,su"h dama'es %hi"h to the "ourt shall a##ear to e !ust andshall not e re'arded as #enalty.

". =eli$er under oath, for im#oundin' durin' the #enden"y of thea"tion, u#on su"h terms and "onditions as the "ourt may

#res"ri e, sales in$oi"es and other do"uments e$iden"in' sales,all arti"les and their #a"9a'in' alle'ed to infrin'e a "o#yri'htand im#lements for ma9in' them.

d. =eli$er under oath for destru"tion %ithout any "om#ensationall infrin'in' "o#ies or de$i"es, as %ell as all #lates, molds, orother means for ma9in' su"h infrin'in' "o#ies as the "ourt mayorder.

e. Su"h other terms and "onditions, in"ludin' the #ayment ofmoral and e>em#lary dama'es, %hi"h the "ourt may deem

#ro#er, %ise and eBuita le and the destru"tion of infrin'in'"o#ies of the %or9 e$en in the e$ent of a"Buittal in a "riminal"ase.

16. . 4n an infrin'ement a"tion, the "ourt shall also ha$e the #o%er toorder the sei-ure and im#oundin' of any arti"le %hi"h may ser$e ase$iden"e in the "ourt #ro"eedin's. (Se". 8, .=. No. */a)

SEC 4 N 17. Criminal enalties. X 17.1. &ny #erson infrin'in' any ri'htse"ured y #ro$isions of art 4D of this &"tor aidin' or a ettin' su"hinfrin'ement shall e 'uilty of a "rime #unisha le y:

a. 4m#risonment of one (1) year to three (3) years #lus a neran'in' from ifty thousand #esos ( L+,+++) to ne hundred ftythousand #esos ( 1L+,+++) for the rst o ense.

. 4m#risonment of three (3) years and one (1) day to si> (6)years #lus a ne ran'in' from ne hundred fty thousand #esos



( 1L+,+++) to i$e hundred thousand #esos ( L++,+++) for these"ond o ense.

". 4m#risonment of si> (6) years and one (1) day to nine (/) years#lus a ne ran'in' from i$e hundred thousand #esos ( L++,+++)

to ne million $e hundred thousand #esos ( 1,L++,+++) for thethird and su seBuent o enses.

d. 4n all "ases, su sidiary im#risonment in "ases of insol$en"y.

17. . 4n determinin' the num er of years of im#risonment and theamount of ne, the "ourt shall "onsider the $alue of the infrin'in'materials that the defendant has #rodu"ed or manufa"tured and thedama'e that the "o#yri'ht o%ner has su ered y reason of theinfrin'ement.

17.3. &ny #erson %ho at the time %hen "o#yri'ht su sists in a %or9has in his #ossession an arti"le %hi"h he 9no%s, or ou'ht to 9no%, toe an infrin'in' "o#y of the %or9 for the #ur#ose of: a. Sellin', lettin'

for hire, or y %ay of trade o erin' or e>#osin' for sale, or hire, thearti"leA

. =istri utin' the arti"le for #ur#ose of trade, or for any other#ur#ose to an e>tent that %ill #re!udi"e the ri'hts of the"o#yri'ht o%ner in the %or9A or

". rade e>hi it of the arti"le in #u li", shall e 'uilty of an

o ense and shall e lia le on "on$i"tion to im#risonment andne as a o$e mentioned. (Se". /, .=. No. */a) (Em#hasissu##lied)

he la% is "lear. 4nasmu"h as there is %isdom in #rioriti-in' the Ho% ande>"han'e of ideas as o##osed to re%ardin' the "reator, it is the #lain readin'of the la% in "on!un"tion %ith the a"tions of the le'islature to %hi"h %e defer.Fe ha$e "ontinuously 5re"o'ni-ed the #o%er of the le'islature . . . to for id"ertain a"ts in a limited "lass of "ases and to ma9e their "ommission "riminal%ithout re'ard to the intent of the doer. Su"h le'islati$e ena"tments are

ased on the e>#erien"e that re#ressi$e measures %hi"h de#end for theireJ"ien"y u#on #roof of the dealer s 9no%led'e or of his intent are of littleuse and rarely a""om#lish their #ur#oses.5 1*7

Res#ondents ar'ue that li$e road"ast of ne%s reBuires a di erent treatmentin terms of 'ood faith, intent, and 9no%led'e to "ommit infrin'ement. oar'ue this #oint, they rely on the di eren"es of the media used in ?a ana etal. $. Ro les, Colum ia i"tures $. Court of &##eals, and this "ase:





etitioner & S C N ar'ues that la"9 of noti"e that the &n'elo dela Cru- %asunder em ar'o is not a defense in "o#yri'ht infrin'ement and "ites the "aseof Colum ia i"tures $s. Court of &##eals and ?a ana et al. $s. Ro les(31+SCR& L11). ?o%e$er, these "ases refer to lm and literary %or9 %hereo $iously there is 5"o#yin'5 from an e>istin' material so that the "o#ier

9ne% that he is "o#yin' from an e>istin' material not o%ned y him. ut,ho% "ould res#ondents 9no% that %hat they are 5"o#yin' %as not ;theirs<5%hen they %ere not "o#yin' ut merely re"ei$in' li$e $ideo feed fromReuters and CNN %hi"h they airedW Fhat they 9ne% and %hat they aired %asthe Reuters li$e $ideo feed and the CNN feed %hi"h G2& 7 is authori-ed to"arry in its ne%s road"ast, it ein' a su s"ri er of these "om#anies;.<

4t is a#t to stress that the su !e"t of the alle'ed "o#yri'ht infrin'ement is nota lm or literary %or9 ut li$e road"ast of ne%s foota'e. 4n a lm or literary%or9, the infrin'er is "onfronted fa"e to fa"e %ith the material he is alle'edly"o#yin' and therefore 9no%s, or is #resumed to 9no%, that %hat he is

"o#yin' is o%ned y another. K#on the other hand, in li$e road"ast, thealle'ed infrin'er is not "onfronted %ith the fa"t that the material he airs orre road"asts is o%ned y another, and therefore, he "annot e "har'ed of9no%led'e of o%nershi# of the material y another. his s#e"ially o tains inthe &n'elo dela Cru- ne%s foota'e %hi"h G2& 7 re"ei$ed from Reuters andCNN. Reuters and CNN %ere eamin' li$e $ideos from the "o$era'e %hi"hG2& 7 re"ei$ed as a su s"ri er and, in the e>er"ise of its ri'hts as asu s"ri er, G2& 7 #i"9ed u# the li$e $ideo and simultaneously re road"astit. 4n simultaneously road"astin' the li$e $ideo foota'e of Reuters, G2& 7did not "o#y the $ideo foota'e of #etitioner & S C N;.< 1*8 (Em#hasis in theori'inal)

Res#ondents ar'uments must fail.

Res#ondents are in$ol$ed and e>#erien"ed in the road"astin' usiness. hey 9ne% that there %ould e "onseBuen"es in "arryin' & S C N s foota'ein their road"ast. hat is %hy G2& 7 alle'edly "ut the feed from Reutersu#on seein' & S C N s o'o and re#orter. o admit a di erent treatment for

road"asts %ould mean a andonment of a road"astin' or'ani-ation sminimum ri'hts, in"ludin' "o#yri'ht on the road"ast material and the ri'hta'ainst unauthori-ed re road"ast of "o#yri'hted material. he nature of

road"ast te"hnolo'y is #re"isely %hy related or nei'h orin' ri'hts %ere"reated and de$elo#ed. Car$in' out an e>"e#tion for li$e road"asts %ould'o a'ainst our "ommitments under rele$ant international treaties anda'reements, %hi"h #ro$ide for the same minimum ri'hts. 1*/

Contrary to res#ondents assertion, this "ourt in ?a ana, 1L+ reiteratin' therulin' in Colum ia i"tures, 1L1 ruled that la"9 of 9no%led'e of infrin'ement isnot a $alid defense. ?a ana and Colum ia i"tures may ha$e di erentfa"tual s"enarios from this "ase, ut their rulin's on "o#yri'ht infrin'ement











are analo'ous. 4n ?a ana, #etitioners %ere the authors and "o#yri'ht o%nersof En'lish te>t oo9s and %or9 oo9s. he "ase %as an"hored on the#rote"tion of literary and artisti" "reations su"h as oo9s. 4n Colum ia

i"tures, $ideo ta#es of "o#yri'hted lms %ere the su !e"t of the "o#yri'htinfrin'ement suit.

4n ?a ana, 9no%led'e of the infrin'ement is #resumed %hen the infrin'er"ommits the #rohi ited a"t:

he essen"e of intelle"tual #ira"y should e essayed in "on"e#tual terms inorder to unders"ore its 'ra$ity y an a##ro#riate understandin' thereof.4nfrin'ement of a "o#yri'ht is a tres#ass on a #ri$ate domain o%ned ando""u#ied y the o%ner of the "o#yri'ht, and, therefore, #rote"ted y la%,and infrin'ement of "o#yri'ht, or #ira"y, %hi"h is a synonymous term in this"onne"tion, "onsists in the doin' y any #erson, %ithout the "onsent of theo%ner of the "o#yri'ht, of anythin' the sole ri'ht to do %hi"h is "onferred y

statute on the o%ner of the "o#yri'ht.. . . .

& "o#y of a #ira"y is an infrin'ement of the ori'inal, and it is no defense thatthe #irate, in su"h "ases, did not 9no% %hether or not he %as infrin'in' any"o#yri'htA he at least 9ne% that %hat he %as "o#yin' %as not his, and he"o#ied at his #eril.

. . . .

4n "ases of infrin'ement, "o#yin' alone is not %hat is #rohi ited. he "o#yin'must #rodu"e an 5in!urious e e"t5. ?ere, the in!ury "onsists in thatres#ondent Ro les lifted from #etitioners oo9 materials that %ere the resultof the latter s resear"h %or9 and "om#ilation and misre#resented them asher o%n. She "ir"ulated the oo9 =E for "ommer"ial use and did nota"9no%led'e #etitioners as her sour"e. 1L (Em#hasis su##lied)

?a ana and Colum ia i"tures did not reBuire 9no%led'e of the infrin'ementto "onstitute a $iolation of the "o#yri'ht. ne does not need to 9no% that heor she is "o#yin' a %or9 %ithout "onsent to $iolate "o#yri'ht la%. Noti"e offa"t of the em ar'o from Reuters or CNN is not material to nd #ro a le"ause that res#ondents "ommitted infrin'ement. Pno%led'e of infrin'ementis only material %hen the #erson is "har'ed of aidin' and a ettin' a"o#yri'ht infrin'ement under Se"tion 17 of the 4ntelle"tual ro#ertyCode. 1L3

Fe loo9 at the #ur#ose of "o#yri'ht in relation to "riminal #rose"utionsreBuirin' %illfulness: 2ost im#ortantly, in de nin' the "ontours of %hat itmeans to %illfully infrin'e "o#yri'ht for #ur#oses of "riminal lia ility, the







"ourts should remem er the ultimate aim of "o#yri'ht. Co#yri'ht is not#rimarily a out #ro$idin' the stron'est #ossi le #rote"tion for "o#yri'hto%ners so that they ha$e the hi'hest #ossi le in"enti$e to "reate more%or9s. he "ontrol 'i$en to "o#yri'ht o%ners is only a means to an end: the#romotion of 9no%led'e and learnin'. &"hie$in' that underlyin' 'oal of

"o#yri'ht la% also reBuires a""ess to "o#yri'hted %or9s and it reBuires#ermittin' "ertain 9inds of uses of "o#yri'hted %or9s %ithout the #ermissionof the "o#yri'ht o%ner. Fhile a #arti"ular defendant may a##ear to edeser$in' of "riminal san"tions, the standard for determinin' %illfulnessshould e set %ith referen"e to the lar'er 'oals of "o#yri'ht em odied in theConstitution and the history of "o#yri'ht in this "ountry. 1L*

4n addition, 5;t<he essen"e of intelle"tual #ira"y should e essayed in"on"e#tual terms in order to unders"ore its 'ra$ity y an a##ro#riateunderstandin' thereof. 4nfrin'ement of a "o#yri'ht is a tres#ass on a #ri$atedomain o%ned and o""u#ied y the o%ner of the "o#yri'ht, and, therefore,

#rote"ted y la%, and infrin'ement of "o#yri'ht, or #ira"y, %hi"h is asynonymous term in this "onne"tion, "onsists in the doin' y any #erson,%ithout the "onsent of the o%ner of the "o#yri'ht, of anythin' the sole ri'htto do %hi"h is "onferred y statute on the o%ner of the "o#yri'ht.5 1LL

4ntelle"tual #ro#erty ri'hts, su"h as "o#yri'ht and the nei'h orin' ri'hta'ainst re road"astin', esta lish an arti "ial and limited mono#oly to re%ard"reati$ity. Fithout these le'ally enfor"ea le ri'hts, "reators %ill ha$ee>treme diJ"ulty re"o$erin' their "osts and "a#turin' the sur#lus or #ro t of their %or9s as reHe"ted in their mar9ets. his, in turn, is ased on the theorythat the #ossi ility of 'ain due to "reati$e %or9 "reates an in"enti$e %hi"h

may im#ro$e eJ"ien"y or sim#ly enhan"e "onsumer %elfare or utility. 2ore"reati$ity redounds to the #u li" 'ood.

hese, ho%e$er, de#end on the "ertainty of enfor"ement. Creati$ity, y its$ery nature, is $ulnera le to the free rider #ro lem. 4t is easily re#li"ateddes#ite the "osts to and e orts of the ori'inal "reator. he more useful the"reation is in the mar9et, the 'reater the #ro#ensity that it %ill e "o#ied.

he most "reati$e and in$enti$e indi$iduals are usually those %ho are una leto re"o$er on their "reations.

&r'uments a'ainst stri"t lia ility #resu##ose that the hili##ines has a so"ial,histori"al, and e"onomi" "limate similar to those of Festern !urisdi"tions. &sit stands, there is a "urrent need to stren'then intelle"tual #ro#erty#rote"tion.

hus, unless "learly #ro$ided in the la%, o enses in$ol$in' infrin'ement of"o#yri'ht #rote"tions should e "onsidered malum #rohi itum. 4t is the a"t of infrin'ement, not the intent, %hi"h "auses the dama'e. o reBuire or assume







etitioners, ein' "or#orate oJ"ers and@or dire"tors, throu'h %hose a"t,default or omission the "or#oration "ommits a "rime, may themsel$es eindi$idually held ans%era le for the "rime. . . . he e>isten"e of the "or#orateentity does not shield from #rose"ution the "or#orate a'ent %ho 9no%in'lyand intentionally "aused the "or#oration to "ommit a "rime. hus, #etitioners

"annot hide ehind the "loa9 of the se#arate "or#orate #ersonality of the"or#oration to es"a#e "riminal lia ility. & "or#orate oJ"er "annot #rote"thimself ehind a "or#oration %here he is the a"tual, #resent and eJ"ienta"tor. 1L/

?o%e$er, the "riminal lia ility of a "or#oration s oJ"ers or em#loyees stemsfrom their a"ti$e #arti"i#ation in the "ommission of the %ron'ful a"t:

he #rin"i#le a##lies %hether or not the "rime reBuires the "ons"iousness of%ron'doin'. 4t a##lies to those "or#orate a'ents %ho themsel$es "ommit the"rime and to those, %ho, y $irtue of their mana'erial #ositions or other

similar relation to the "or#oration, "ould e deemed res#onsi le for its"ommission, if y $irtue of their relationshi# to the "or#oration, they had the#o%er to #re$ent the a"t. 2oreo$er, all #arties a"ti$e in #romotin' a "rime,%hether a'ents or not, are #rin"i#als. Fhether su"h oJ"ers or em#loyeesare ene ted y their deli"tual a"ts is not a tou"hstone of their "riminallia ility. ene t is not an o#erati$e fa"t. 16+ (Em#hasis su##lied) &n a""used s#arti"i#ation in "riminal a"ts in$ol$in' $iolations of intelle"tual #ro#ertyri'hts is the su !e"t of alle'ation and #roof. he sho%in' that the a""useddid the a"ts or "ontri uted in a meanin'ful %ay in the "ommission of theinfrin'ements is "ertainly di erent from the ar'ument of la"9 of intent or'ood faith. &"ti$e #arti"i#ation reBuires a sho%in' of o$ert #hysi"al a"ts or

intention to "ommit su"h a"ts. 4ntent or 'ood faith, on the other hand, areinferen"es from a"ts #ro$en to ha$e een or not een "ommitted.

Fe nd that the =e#artment of usti"e "ommitted 'ra$e a use of dis"retion%hen it resol$ed to le the 4nformation a'ainst res#ondents des#ite la"9 of#roof of their a"tual #arti"i#ation in the alle'ed "rime.

rderin' the in"lusion of res#ondents Go-on, G2& 7 residentA =ua$it, r.,E>e"uti$e Di"e residentA lores, Di"e resident for Ne%s and u li" & airsAand Soho, =ire"tor for Ne%s, as res#ondents, Se"retary &'ra o$erturned theCity rose"utor s ndin' that only res#ondents =ela eTa Reyes and2analastas are res#onsi le for the "rime "har'ed due to their duties. 161 he&'ra Resolution reads:

hus, from the $ery nature of the o ense and the #enalty in$ol$ed, it isne"essary that G2& 7 s dire"tors, oJ"ers, em#loyees or other oJ"ersthereof res#onsi le for the o ense shall e "har'ed and #enali-ed for$iolation of the Se"tions 177 and 11 of Re#u li" &"t No. 8 /3. 4n their"om#laint for li el, res#ondents eli#e Go-on, Gil erto R. =ua$it, r.,









2arissa . lores, essi"a &.Soho, Gra"e =ela ena Reyes, ohn li$er .2analastas felt they %ere a''rie$ed e"ause they %ere 5in "har'e of themana'ement, o#erations and #rodu"tion of ne%s and #u li" a airs #ro'ramsof the net%or95 (G2& 7). his is "learly an admission on res#ondents #art.

f "ourse, res#ondents may ar'ue they ha$e no intention to infrin'e the

"o#yri'ht of & S C NA that they a"ted in 'ood faithA and that they did notdire"tly "ause the airin' of the su !e"t foota'e, ut a'ain this is #reliminaryin$esti'ation and %hat is reBuired is sim#ly #ro a le "ause. esides, these"ontentions "an est e addressed in the "ourse of trial. 16 (Citation omitted)

4n "ontrast, the J"e of the City rose"utor, in the Resolution dated=e"em er 3, ++*, found that res#ondents Go-on, =ua$it, r., lores, andSoho did not ha$e a"ti$e #arti"i#ation in the "ommission of the "rime"har'ed:

his J"e, ho%e$er, does not su s"ri e to the $ie% that res#ondents &tty.

eli#e Go-on, Gil erto =ua$it, 2arissa lores and essi"a Soho should e heldlia le for the said o ense. Com#lainant failed to #resent "lear and "on$in"in'e$iden"e that the said res#ondents "ons#ired %ith Reyes and 2analastas. Noe$iden"e %as addu"ed to #ro$e that these res#ondents had an a"ti$e#arti"i#ation in the a"tual "ommission of the "o#yri'ht infrin'ement or theye>er"ised their moral as"endan"y o$er Reyes and 2analastas in airin' thesaid foota'e. 4t must e stressed that, "ons#ira"y must e esta lished y#ositi$e and "on"lusi$e e$iden"e. 4t must e sho%n to e>ist as "learly and"on$in"in'ly as the "ommission of the o ense itself. 163 (Em#hasis su##lied,"itations omitted)

he City rose"utor found res#ondents =ela eTa Reyes and 2analastaslia le due to the nature of their %or9 and res#onsi ilities. ?e found that:

;t<his J"e ho%e$er nds res#ondents Gra"e =ela eTa Reyes and ohnli$er . 2analastas lia le for "o#yri'ht infrin'ement #enali-ed under

Re#u li" &"t No. 8 /3. 4t is undis#uted that "om#lainant & SC N holds thee>"lusi$e o%nershi# and "o#yri'ht o$er the 5&n'elo ;d<ela Cru- ne%sfoota'e5. ?en"e, any airin' and re road"ast of the said foota'e %ithout any"onsent and authority from & S C N %ill e held as an infrin'ement and$iolation of the intelle"tual #ro#erty ri'hts of the latter. Res#ondents Gra"e=ela eTa Reyes as the ?ead of the Ne%s #eration and ohn li$er .2analastas as the ro'ram 2ana'er "annot es"a#e lia ility sin"e the ne%s"ontrol room %as under their dire"t "ontrol and su#er$ision. Clearly, theymust ha$e een a%are that the said foota'e "omin' from Reuters or CNNhas a 5No &""ess hili##ines5 ad$isory or em ar'o thus "annot e re

road"ast. Fe nd no merit to the defense of i'noran"e inter#osed y theres#ondents. 4t is sim#ly "ontrary to human e>#erien"e and lo'i" thate>#erien"ed em#loyees of an esta lished road"astin' net%or9 %ould e







remiss in their duty in as"ertainin' if the said foota'e has anem ar'o. 16* (Em#hasis su##lied)

Fe a'ree %ith the ndin's as to res#ondents =ela eTa Reyes and2analastas. oth res#ondents "ommitted a"ts that #romoted infrin'ement of

& S C N s foota'e. Fe note that em ar'oes are "ommon o""urren"es in andet%een ne%s a'en"ies and@or road"ast or'ani-ations. 16L Knder its#erations Guide, Reuters has t%o ( ) ty#es of em ar'oes: transmission

em ar'o and #u li"ation em ar'o. 166 Knder & S C N s ser$i"e "ontra"t %ithReuters, Reuters %ill em ar'o any "ontent "ontri uted y & S C N fromother road"ast su s"ri ers %ithin the same 'eo'ra#hi"al lo"ation:

*a. Contri uted Content

Iou a'ree to su##ly us at our reBuest %ith ne%s and s#orts ne%s storiesroad"ast on the Client Ser$i"e of u# to three (3) minutes ea"h for use in our

Ser$i"es on a non e>"lusi$e asis and at a "ost of KSZ3++.++ ( hree ?undredKnited States =ollars) #er story. 4n res#e"t of su"h items %e a'ree toem ar'o them a'ainst use y other road"ast su s"ri ers in the erritoryand "on rm %e %ill o ser$e all other "onditions of usa'e re'ardin'Contri uted Content, as s#e"i ed in Se"tion .L of the Reuters usiness

rin"i#les for ele$ision Ser$i"es. or the #ur#oses of "lari "ation, any'eo'ra#hi"al restri"tion im#osed y you on your use of Contri uted Content%ill not #re$ent us or our "lients from in"ludin' su"h Contri uted Content inonline transmission ser$i"es in"ludin' the internet. Fe a"9no%led'eContri uted Content is your "o#yri'ht and %e %ill not a"Buire any intelle"tual#ro#erty ri'hts in the Contri uted Content. 167 (Em#hasis su##lied)

Res#ondents =ela eTa Reyes and 2analastas merely denied re"ei$in' thead$isory sent y Reuters to its "lients, in"ludin' G2& 7. &s in the re"ords, thead$isory reads:

&=D4S RI [[[ 4DE C DER &NS[[[?4 4 4NES: ? S &GE RE KRN

& EN 4 N & C 4EN S

E&SE E &=D4SE= ?E F4NG 4DE C DER&NNE= R ?KRS=&I, K I :

. . . .

S KRCE: & S C N D &N= FE RES R4C 4 NS: N &CCESS ?4 4 4NES. 168













here is #ro a le "ause that res#ondents =ela eTa Reyes and 2analastasdire"tly "ommitted "o#yri'ht infrin'ement of & S C N s ne%s foota'e to%arrant #ier"in' of the "or#orate $eil. hey are res#onsi le in airin' theem ar'oed &n'elo dela Cru- foota'e. hey "ould ha$e #re$ented the a"t ofinfrin'ement had they een dili'ent in their fun"tions as ?ead of Ne%s

#erations and ro'ram 2ana'er.Se"retary &'ra, ho%e$er, "ommitted 'ra$e a use of dis"retion %hen heordered the lin' of the 4nformation a'ainst all res#ondents des#ite theerroneous #ier"in' of the "or#orate $eil. Res#ondents Go-on, =ua$it, r.,

lores, and Soho "annot e held lia le for the "riminal lia ility of the"or#oration.

2ere mem ershi# in the oard or ein' resident #er se does not mean9no%led'e, a##ro$al, and #arti"i#ation in the a"t alle'ed as "riminal. heremust e a sho%in' of a"ti$e #arti"i#ation, not sim#ly a "onstru"ti$e one.

Knder #rin"i#les of "riminal la%, the #rin"i#als of a "rime are those 5%ho ta9ea dire"t #art in the e>e"ution of the a"tA ;t<hose %ho dire"tly for"e or indu"eothers to "ommit itA ;or< ;t<hose %ho "oo#erate in the "ommission of theo ense y another a"t %ithout %hi"h it %ould not ha$e eena""om#lished.5 16/ here is "ons#ira"y 5%hen t%o or more #ersons "ome to ana'reement "on"ernin' the "ommission of a felony and de"ide to "ommitit5: 17+

Cons#ira"y is not #resumed. i9e the #hysi"al a"ts "onstitutin' the "rimeitself, the elements of "ons#ira"y must e #ro$en eyond reasona le

dou t. *7&phi* Fhile "ons#ira"y need not e esta lished y dire"t e$iden"e,for it may e inferred from the "ondu"t of the a""used efore, durin' andafter the "ommission of the "rime, all ta9en to'ether, ho%e$er, the e$iden"emust e stron' enou'h to sho% the "ommunity of "riminal desi'n. or"ons#ira"y to e>ist, it is essential that there must e a "ons"ious desi'n to"ommit an o ense. Cons#ira"y is the #rodu"t of intentionality on the #art ofthe "ohorts.

4t is ne"essary that a "ons#irator should ha$e #erformed some o$ert a"t as adire"t or indire"t "ontri ution to the e>e"ution of the "rime "ommitted. heo$ert a"t may "onsist of a"ti$e #arti"i#ation in the a"tual "ommission of the"rime itself, or it may "onsist of moral assistan"e to his "o "ons#irators y

ein' #resent at the "ommission of the "rime or y e>ertin' moralas"endan"y o$er the other "o "ons#irators;.< 171 (Em#hasis su##lied, "itationsomitted)

4n sum, the trial "ourt erred in failin' to resume the #ro"eedin's after thedesi'nated #eriod. he Court of &##eals erred %hen it held that Se"retary&'ra "ommitted errors of !urisdi"tion des#ite its o%n #ronoun"ement that









& S C N is the o%ner of the "o#yri'ht on the ne%s foota'e. Ne%s should edi erentiated from e>#ression of the ne%s, #arti"ularly %hen the issuein$ol$es re road"ast of ne%s foota'e. he Court of &##eals also erroneouslyheld that 'ood faith, as. %ell as la"9 of 9no%led'e of infrin'ement, is adefense a'ainst "riminal #rose"ution for "o#yri'ht and nei'h orin' ri'hts

infrin'ement. 4n its "urrent form, the 4ntelle"tual ro#erty Code is malum#rohi itum and #res"ri es a stri"t lia ility for "o#yri'ht infrin'ement. Goodfaith, la"9 of 9no%led'e of the "o#yri'ht, or la"9 of intent to infrin'e is not adefense a'ainst "o#yri'ht infrin'ement. Co#yri'ht, ho%e$er, is su !e"t to therules of fair. use and %ill e !ud'ed on a "ase to "ase asis. indin' #ro a le"ause in"ludes a determination of the defendant0s a"ti$e #arti"i#ation,#arti"ularly %hen the "or#orate $eil is #ier"ed in "ases in$ol$in' a"or#oration0s "riminal lia ility.

F?ERE RE, the etition is #artially GR&N E=. he =e#artment of usti"eResolution dated une /, +1+ orderin' the lin' of the 4nformation is

here y RE4NS & E= as to res#ondents Gra"e =ela ena Reyes and ohnli$er . 2analastas. ran"h /3 of the Re'ional rial Court of Que-on City isdire"ted to "ontinue %ith the #ro"eedin's in Criminal Case No. Q +* 131L33.

S R=ERE=.

MAR IC M. .8. 9 !N N&sso"iate usti"e

C!9UMBIA ICTUR S, INC., !RI!N ICTUR S C!R !RATI!N,ARAM!UNT ICTUR S C!R !RATI!N, T NTI TH C NTURY

8!@ 8I9M C!R !RATI!N, UNIT D ARTISTS C!R !RATI!N,UNI RSA9 CITY STUDI!S, INC., TH A9T DISN Y C!M ANY,a%& ARN R BR!TH RS, INC., petitioners, vs . C!URT !8A A9S, SUNSHIN H!M ID !, INC. a%& DANI9! A.

9INDARI!, respondents .

D C I S I ! N

R GA9AD!, J.>

efore us is a #etition for re$ie% on certiorari of the de"ision of the Courtof &##eals ;1< #romul'ated on uly , 1// and its resolution ; < of 2ay 1+,1//3 denyin' #etitioners motion for re"onsideration, oth of %hi"h sustainedthe order ;3< of the Re'ional rial Court, ran"h 133, 2a9ati, 2etro 2anila,dated No$em er , 1/88 for the Buashal of Sear"h Farrant No. 87 +L3earlier issued #er its o%n order ;*< on Se#tem er L, 1/88 for $iolation of

http://sc.judiciary.gov.ph/jurisprudence/1996/aug1996/110318.htm#_edn1










Se"tion L6 of residential =e"ree No. */, as amended, other%ise 9no%n asthe =e"ree on the rote"tion of 4ntelle"tual ro#erty.

he material fa"ts found y res#ondent a##ellate "ourt are as follo%s:

Com#lainants thru "ounsel lod'ed a formal "om#laint %ith the National

ureau of 4n$esti'ation for $iolation of = No. */, as amended, and sou'htits assistan"e in their anti lm #ira"y dri$e. &'ents of the N 4 and #ri$ateresear"hers made dis"reet sur$eillan"e on $arious $ideo esta lishments in2etro 2anila in"ludin' Sunshine ?ome Dideo 4n". (Sunshine for re$ity),o%ned and o#erated y =anilo &. elindario %ith address at No. 6 2ayfairCenter, 2a'allanes, 2a9ati, 2etro 2anila.

n No$em er 1*, 1/87, N 4 Senior &'ent auro C. Reyes a##lied for asear"h %arrant %ith the "ourt a 4uo a'ainst Sunshine see9in' the sei-ure,amon' others, of #irated $ideo ta#es of "o#yri'hted lms all of %hi"h %ereenumerated in a list atta"hed to the a##li"ationA and, tele$ision sets, $ideo"assettes and@or laser dis" re"ordin's eBui#ment and other ma"hines and#ara#hernalia used or intended to e used in the unla%ful e>hi ition,sho%in', re#rodu"tion, sale, lease or dis#osition of $ideo'rams ta#es in the#remises a o$e des"ri ed. 4n the hearin' of the a##li"ation, N 4 Senior&'ent auro C. Reyes, u#on Buestions y the "ourt a 4uo , reiterated insu stan"e his a$erments in his aJda$it. ?is testimony %as "orro orated yanother %itness, 2r. Rene C. alta-ar. &tty. Ri"o D. =omin'os de#osition %asalso ta9en. n the asis of the aJda$its and de#ositions of N 4 Senior &'ent

auro C. Reyes, Rene C. alta-ar and &tty. Ri"o D. =omin'o, Sear"h FarrantNo 87 +L3 for $iolation of Se"tion L6 of = No. */, as amended, %as issued

y the "ourt a 4uo .

he sear"h %arrant %as ser$ed at a out 1:*L #.m. on =e"em er 1*, 1/87to Sunshine and@or their re#resentati$es. 4n the "ourse of the sear"h of the#remises indi"ated in the sear"h %arrant, the N 4 &'ents found and sei-ed$arious $ideo ta#es of duly "o#yri'hted motion #i"tures@ lms o%ned ore>"lusi$ely distri uted y #ri$ate "om#lainants, and ma"hines, eBui#ment,tele$ision sets, #ara#hernalia, materials, a""essories all of %hi"h %erein"luded in the re"ei#t for #ro#erties a""om#lished y the raidin' team. Co#yof the re"ei#t %as furnished and@or tendered to 2r. =anilo &. elindario,re'istered o%ner #ro#rietor of Sunshine ?ome Dideo.

n =e"em er 16, 1/87, a Return of Sear"h Farrant %as led %ith the

Court.& 2otion o ift the rder of Sear"h Farrant %as led ut %as later

denied for la"9 of merit (#. 8+, Re"ords).

& 2otion for re"onsideration of the rder of denial %as led. he"ourt a 4uo 'ranted the said motion for re"onsideration and !usti ed it in thismanner:



4t is undis#uted that the master ta#es of the "o#yri'hted lms from %hi"hthe #irated lms %ere alle'edly "o#ies (si"), %ere ne$er #resented in the#ro"eedin's for the issuan"e of the sear"h %arrants in Buestion. he ordersof the Court 'rantin' the sear"h %arrants and denyin' the ur'ent motion tolift order of sear"h %arrants %ere, therefore, issued in error. ConseBuently,

they must e set aside. (#. 13, &##ellants rief);L<

etitioners thereafter a##ealed the order of the trial "ourt 'rantin'#ri$ate res#ondents motion for re"onsideration, thus liftin' the sear"h%arrant %hi"h it had therefore issued, to the Court of &##eals. &s stated atthe outset, said a##eal %as dismissed and the motion for re"onsiderationthereof %as denied. ?en"e, this #etition %as rou'ht to this Court#arti"ularly "hallen'in' the $alidity of res#ondent "ourts retroa"ti$ea##li"ation of the rulin' in 8th Century $o9 $il- Corporation vs. Court o#

"ppeals, et al ., ;6< in dismissin' #etitioners a##eal and u#holdin' the Buashalof the sear"h %arrant y the trial "ourt.

I4n"e#ti$ely, %e shall settle the #ro"edural "onsiderations on the matter of

and the "hallen'e to #etitioners le'al standin' in our "ourts, they ein'forei'n "or#orations not li"ensed to do usiness in the hili##ines.

ri$ate res#ondents a$er that ein' forei'n "or#orations, #etitionersshould ha$e su"h li"ense to e a le to maintain an a"tion in hili##ine"ourts. 4n so "hallen'in' #etitioners #ersonality to sue, #ri$ate res#ondents#oint to the fa"t that #etitioners are the "o#yri'ht o%ners or o%ners of e>"lusi$e ri'hts of distri ution in the hili##ines of "o#yri'hted motion#i"tures or lms, and also to the a##ointment of &tty. Ri"o D. =omin'o astheir attorney in fa"t, as ein' "onstituti$e of doin' usiness in the

hili##ines under Se"tion 1(f) (1) and ( ), Rule 1 of the Rules of the oard of 4n$estments. &s forei'n "or#orations doin' usiness in the hili##ines,Se"tion 133 of atas am ansa l'. 68, or the Cor#oration Code of the

hili##ines, denies them the ri'ht to maintain a suit in hili##ine "ourts inthe a sen"e of a li"ense to do usiness. ConseBuently, they ha$e no ri'ht toas9 for the issuan"e of a sear"h %arrant. ;7<

4n refutation, #etitioners Hatly deny that they are doin' usiness in thehili##ines, ;8< and "ontend that #ri$ate res#ondents ha$e not addu"ed

e$iden"e to #ro$e that #etitioners are doin' su"h usiness here, as %ouldreBuire them to e li"ensed y the Se"urities and E>"han'e Commission,other than a$erments in the Buoted #ortions of #etitioners ##osition toKr'ent 2otion to ift rder of Sear"h Farrant dated &#ril 8, 1/88 and &tty.Ri"o D. =omin'os aJda$it of =e"em er 1*, 1/87. 2oreo$er, an e>"lusi$eri'ht to distri ute a #rodu"t or the o%nershi# of su"h e>"lusi$e ri'ht does not"on"lusi$ely #ro$e the a"t of doin' usiness nor esta lish the #resum#tion of doin' usiness. ;/<













he Cor#oration Code #ro$ides:

Se". 133. 6oin: 1usiness &ithout a license . No forei'n "or#orationtransa"tin' usiness in the hili##ines %ithout a li"ense, or its su""essors orassi'ns, shall e #ermitted to maintain or inter$ene in any a"tion, suit or

#ro"eedin' in any "ourt or administrati$e a'en"y of the hili##inesA ut su"h"or#oration may e sued or #ro"eeded a'ainst efore hili##ine "ourts oradministrati$e tri unals on any $alid "ause of a"tion re"o'ni-ed under

hili##ine la%s.

he o tainment of a li"ense #res"ri ed y Se"tion 1 L of the Cor#orationCode is not a "ondition #re"edent to the maintenan"e of any 9ind of a"tion in

hili##ine "ourts y a forei'n "or#oration. ?o%e$er, under the aforeBuoted#ro$ision, no forei'n "or#oration shall e #ermitted to transa"t usiness inthe hili##ines, as this #hrase is understood under the Cor#oration Code,unless it shall ha$e the li"ense reBuired y la%, and until it "om#lies %ith the

la% in transa"tin' usiness here, it shall not e #ermitted to maintain anysuit in lo"al "ourts. ;1+< &s thus inter#reted, any forei'n "or#oration not doin'usiness in the hili##ines may maintain an a"tion in our "ourts u#on any

"ause of a"tion, #ro$ided that the su !e"t matter and the defendant are%ithin the !urisdi"tion of the "ourt. 4t is not the a sen"e of the #res"ri edli"ense ut doin' usiness in the hili##ines %ithout su"h li"ense %hi"hde ars the forei'n "or#oration from a""ess to our "ourts. 4n other %ords,althou'h a forei'n "or#oration is %ithout li"ense to transa"t usiness in the

hili##ines, it does not follo% that it has no "a#a"ity to rin' an a"tion. Su"hli"ense is not ne"essary if it is not en'a'ed in usiness in the hili##ines. ;11<

Statutory #ro$isions in many !urisdi"tions are determinati$e of %hat"onstitutes doin' usiness or transa"tin' usiness %ithin that forum, in%hi"h "ase said #ro$isions are "ontrollin' there. 4n others %here no su"hde nition or Buali "ation is laid do%n re'ardin' a"ts or transa"tions fallin'%ithin its #ur$ie%, the Buestion rests #rimarily on fa"ts and intent. 4t is thusheld that all the "om ined a"ts of a forei'n "or#oration in the State must e"onsidered, and e$ery "ir"umstan"e is material %hi"h indi"ates a #ur#ose onthe #art of the "or#oration to en'a'e in some #art of its re'ular usiness inthe State. ;1 <

No 'eneral rule or 'o$ernin' #rin"i#les "an e laid do%n as to %hat"onstitutes doin' or en'a'in' in or transa"tin' usiness. Ea"h "ase must e

!ud'ed in the li'ht of its o%n #e"uliar en$ironmental "ir"umstan"es. ;13< hetrue tests, ho%e$er, seem to e %hether the forei'n "or#oration is"ontinuin' the ody or su stan"e of the usiness or enter#rise for %hi"h it%as or'ani-ed or %hether it has su stantially retired from it and turned ito$er to another. ;1*<

&s a 'eneral #ro#osition u#on %hi"h many authorities a'ree in #rin"i#le,su !e"t to su"h modi "ations as may e ne"essary in $ie% of the #arti"ular













issue or of the terms of the statute in$ol$ed, it is re"o'ni-ed that a forei'n"or#oration is doin', transa"tin', en'a'in' in, or "arryin' on usiness in theState %hen, and ordinarily only %hen, it has entered the State y its a'entsand is there en'a'ed in "arryin' on and transa"tin' throu'h them somesu stantial #art of its ordinary or "ustomary usiness, usually "ontinuous in

the sense that it may e distin'uished from merely "asual, s#oradi", oro""asional transa"tions and isolated a"ts. ;1L<

he Cor#oration Code does not itself de ne or "ate'ori-e %hat a"ts"onstitute doin' or transa"tin' usiness in the hili##ines. uris#ruden"e has,ho%e$er, held that the term im#lies a "ontinuity of "ommer"ial dealin's andarran'ements, and "ontem#lates, to that e>tent, the #erforman"e of a"ts or%or9s or the e>er"ise of some of the fun"tions normally in"ident to or in#ro'ressi$e #rose"ution of the #ur#ose and su !e"t of its or'ani-ation. ;16<

his traditional "ase la% de nition has e$ol$ed into a statutory de nition,ha$in' een ado#ted %ith some Buali "ations in $arious #ie"es of le'islation

in our !urisdi"tion.or instan"e, Re#u li" &"t No. L*LL ;17< #ro$ides:

SEC 4 N 1. 6e;nitions and scope o# this "ct. (1) > > >A and the #hrase doin'usiness shall in"lude soli"itin' orders, #ur"hases, ser$i"e "ontra"ts, o#enin'

oJ"es, %hether "alled liaison oJ"es or ran"hesA a##ointin' re#resentati$esor distri utors %ho are domi"iled in the hili##ines or %ho in any "alendaryear stay in the hili##ines for a #eriod or #eriods totallin' one hundredei'hty days or moreA #arti"i#atin' in the mana'ement, su#er$ision or "ontrolof any domesti" usiness rm, entity or "or#oration in the hili##inesA andany other a"t or a"ts that im#ly a "ontinuity of "ommer"ial dealin's orarran'ements, and "ontem#late to that e>tent the #erforman"e of a"ts or%or9s, or the e>er"ise of some of the fun"tions normally in"ident to, and in#ro'ressi$e #rose"ution of, "ommer"ial 'ain or of the #ur#ose and o !e"t ofthe usiness or'ani-ation.

residential =e"ree No. 178/, ;18< in &rti"le 6L thereof, de nes doin'usiness to in"lude soli"itin' orders, #ur"hases, ser$i"e "ontra"ts, o#enin'

oJ"es, %hether "alled liaison oJ"es or ran"hesA a##ointin' re#resentati$esor distri utors %ho are domi"iled in the hili##ines or %ho in any "alendaryear stay in the hili##ines for a #eriod or #eriods totallin' one hundred

ei'hty days or moreA #arti"i#atin' in the mana'ement, su#er$ision or "ontrolof any domesti" usiness rm, entity or "or#oration in the hili##ines, andany other a"t or a"ts that im#ly a "ontinuity of "ommer"ial dealin's orarran'ements and "ontem#late to that e>tent the #erforman"e of a"ts or%or9s, or the e>er"ise of some of the fun"tions normally in"ident to, and in#ro'ressi$e #rose"ution of, "ommer"ial 'ain or of the #ur#ose and o !e"t of the usiness or'ani-ation.











he im#lementin' rules and re'ulations of said #residential de"ree"on"lude the enumeration of a"ts "onstitutin' doin' usiness %ith a "at"h allde nition, thus:

Se". 1('). =oin' usiness shall e any a"t or "om ination of a"ts

enumerated in &rti"le 6L of the Code. 4n #arti"ular doin' usiness in"ludes:>>> >>> >>>

(1+) &ny other a"t or a"ts %hi"h im#ly a "ontinuity of "ommer"ial dealin's orarran'ements, and "ontem#late to that e>tent the #erforman"e of a"ts or%or9s, or the e>er"ise of some of the fun"tions normally in"ident to, or in the#ro'ressi$e #rose"ution of, "ommer"ial 'ain or of the #ur#ose and o !e"t ofthe usiness or'ani-ation.

inally, Re#u li" &"t No. 7+* ;1/< em odies su"h "on"e#t in this %ise:

SEC. 3. 6e;nitions . &s used in this &"t:

>>> >>> >>>

(d) the #hrase doin' usiness shall in"lude soli"itin' orders, ser$i"e"ontra"ts, o#enin' oJ"es, %hether "alled liaison oJ"es or ran"hesAa##ointin' re#resentati$es or distri utors domi"iled in the hili##ines or %hoin any "alendar year stay in the "ountry for a #eriod or #eriods totallin' onehundred ei'ht(y) (18+) days or moreA #arti"i#atin' in the mana'ement,su#er$ision or "ontrol of any domesti" usiness, rm, entity or "or#oration in

the hili##inesA and any other a"t or a"ts that im#ly a "ontinuity of"ommer"ial dealin's or arran'ements, and "ontem#late to that e>tent the#erforman"e of a"ts or %or9s, or the e>er"ise of some of the fun"tionsnormally in"ident to, and in #ro'ressi$e #rose"ution of, "ommer"ial 'ain or of the #ur#ose and o !e"t of the usiness or'ani-ation: Provided ,ho&ever , hatthe #hrase doin' usiness shall not e deemed to in"lude mere in$estmentas a shareholder y a forei'n entity in domesti" "or#orations duly re'isteredto do usiness, and@or the e>er"ise of ri'hts as su"h in$estorsA nor ha$in' anominee dire"tor or oJ"er to re#resent its interests in su"h "or#orationA nora##ointin' a re#resentati$e or distri utor domi"iled in the hili##ines %hi"htransa"ts usiness in its o%n name and for its o%n a""ount.

ased on &rti"le 133 of the Cor#oration Code and 'au'ed y su"hstatutory standards, #etitioners are not arred from maintainin' the #resenta"tion. here is no sho%in' that, under our statutory or "ase la%, #etitionersare doin', transa"tin', en'a'in' in or "arryin' on usiness in the hili##inesas %ould reBuire o tention of a li"ense efore they "an see9 redress from our"ourts. No e$iden"e has een o ered to sho% that #etitioners ha$e





#erformed any of the enumerated a"ts or any other s#e"i " a"t indi"ati$e of an intention to "ondu"t or transa"t usiness in the hili##ines.

&""ordin'ly, the "erti "ation issued y the Se"urities and E>"han'eCommission ; +< statin' that its re"ords do not sho% the re'istration of #etitioner lm "om#anies either as "or#orations or #artnershi#s or that theyha$e een li"ensed to transa"t usiness in the hili##ines, %hile undenia lytrue, is of no "onseBuen"e to #etitioners ri'ht to rin' a"tion in the

hili##ines. Derily, no re"ord of su"h re'istration y #etitioners "an ee>#e"ted to e found for, as aforestated, said forei'n lm "or#orations donot transa"t or do usiness in the hili##ines and, therefore, do not need to

e li"ensed in order to ta9e re"ourse to our "ourts.

&lthou'h Se"tion 1(') of the 4m#lementin' Rules and Re'ulations of themni us 4n$estments Code lists, amon' others

(1) Soli"itin' orders, #ur"hases (sales) or ser$i"e "ontra"ts. Con"rete and

s#e"i " soli"itations y a forei'n rm, or y an a'ent of su"h forei'n rm,not a"tin' inde#endently of the forei'n rm amountin' to ne'otiations or>in' of the terms and "onditions of sales or ser$i"e "ontra"ts, re'ardless of

%here the "ontra"ts are a"tually redu"ed to %ritin', shall "onstitute doin'usiness e$en if the enter#rise has no oJ"e or >ed #la"e of usiness in thehili##ines. he arran'ements a'reed u#on as to manner, time and terms of

deli$ery of the 'oods or the transfer of title thereto is immaterial. & forei'nrm %hi"h does usiness throu'h the middlemen a"tin' in their o%n names,

su"h as indentors, "ommer"ial ro9ers or "ommission mer"hants, shall note deemed doin' usiness in the hili##ines. ut su"h indentors, "ommer"ialro9ers or "ommission mer"hants shall e the ones deemed to e doin'

usiness in the hili##ines.

( ) &##ointin' a re#resentati$e or distri utor %ho is domi"iled in thehili##ines, unless said re#resentati$e or distri utor has an inde#endent

status, i.e., it transa"ts usiness in its name and for its o%n a""ount, and notin the name or for the a""ount of a #rin"i#al. hus, %here a forei'n rm isre#resented in the hili##ines y a #erson or lo"al "om#any %hi"h does nota"t in its name ut in the name of the forei'n rm, the latter is doin'


as a"ts "onstituti$e of doin' usiness, the fa"t that #etitioners areadmittedly "o#yri'ht o%ners or o%ners of e>"lusi$e distri ution ri'hts in the

hili##ines of motion #i"tures or lms does not "on$ert su"h o%nershi# intoan indi"ium of doin' usiness %hi"h %ould reBuire them to o tain a li"ense

efore they "an sue u#on a "ause of a"tion in lo"al "ourts.

Neither is the a##ointment of &tty. Ri"o D. =omin'o as attorney in fa"t of #etitioners, %ith e>#ress authority #ursuant to a s#e"ial #o%er of attorney, inter alia





o lay "riminal "om#laints %ith the a##ro#riate authorities and to #ro$idee$iden"e in su##ort of oth "i$il and "riminal #ro"eedin's a'ainst any #ersonor #ersons in$ol$ed in the "riminal infrin'ement of "o#yri'ht, or "on"ernin'the unauthori-ed im#ortation, du#li"ation, e>hi ition or distri ution of any"inemato'ra#hi" %or9(s) lms or $ideo "assettes of %hi"h > > > is the o%ner

of "o#yri'ht or the o%ner of e>"lusi$e ri'hts of distri ution in the hili##ines#ursuant to any a'reement(s) et%een > > > and the res#e"ti$e o%ners of"o#yri'ht in su"h "inemato'ra#hi" %or9(s), to initiate and #rose"ute on

ehalf of > > > "riminal or "i$il a"tions in the hili##ines a'ainst any #ersonor #ersons unla%fully distri utin', e>hi itin', sellin' or o erin' for sale any

lms or $ideo "assettes of %hi"h > > > is the o%ner of "o#yri'ht or the o%nerof e>"lusi$e ri'hts of distri ution in the hili##ines #ursuant to anya'reement(s) et%een > > > and the res#e"ti$e o%ners of "o#yri'ht in su"h%or9s. ; 1<

tantamount to doin' usiness in the hili##ines. Fe fail to see ho%

e>er"isin' ones le'al and #ro#erty ri'hts and ta9in' ste#s for the $i'ilant#rote"tion of said ri'hts, #arti"ularly the a##ointment of an attorney in fa"t,"an e deemed y and of themsel$es to e doin' usiness here.

&s a 'eneral rule, a forei'n "or#oration %ill not e re'arded as doin'usiness in the State sim#ly e"ause it enters into "ontra"ts %ith residents of

the State, %here su"h "ontra"ts are "onsummated outside the State. ; < 4nfa"t, a $ie% is ta9en that a forei'n "or#oration is not doin' usiness in thestate merely e"ause sales of its #rodu"t are made there or other usinessfurtherin' its interests is transa"ted there y an alle'ed a'ent, %hether a"or#oration or a natural #erson, %here su"h a"ti$ities are not under thedire"tion and "ontrol of the forei'n "or#oration ut are en'a'ed in y thealle'ed a'ent as an inde#endent usiness. ; 3<

4t is 'enerally held that sales made to "ustomers in the State y aninde#endent dealer %ho has #ur"hased and o tained title from the"or#oration to the #rodu"ts sold are not a doin' of usiness y the"or#oration. ; *< i9e%ise, a forei'n "or#oration %hi"h sells its #rodu"ts to#ersons styled distri utin' a'ents in the State, for distri ution y them, isnot doin' usiness in the State so as to render it su !e"t to ser$i"e of #ro"ess therein, %here the "ontra"t %ith these #ur"hasers is that they shall

uy e>"lusi$ely from the forei'n "or#oration su"h 'oods as it manufa"turesand shall sell them at trade #ri"es esta lished y it. ; L<

4t has moreo$er een held that the a"t of a forei'n "or#oration inen'a'in' an attorney to re#resent it in a ederal "ourt sittin' in a #arti"ularState is not doin' usiness %ithin the s"o#e of the minimum "onta"t test.; 6< Fith mu"h more reason should this do"trine a##ly to the mere retainer of &tty. =omin'o for le'al #rote"tion a'ainst "ontin'ent a"ts of intelle"tual#ira"y.















4n a""ordan"e %ith the rule that doin' usiness im#orts only a"ts infurtheran"e of the #ur#oses for %hi"h a forei'n "or#oration %as or'ani-ed, itis held that the mere institution and #rose"ution or defense of a suit,#arti"ularly if the transa"tion %hi"h is the asis of the suit too9 #la"e out of the State, do not amount to the doin' of usiness in the State. he institution

of a suit or the remo$al thereof is neither the ma9in' of a "ontra"t nor thedoin' of usiness %ithin a "onstitutional #ro$ision #la"in' forei'n"or#orations li"ensed to do usiness in the State under the same re'ulations,limitations and lia ilities %ith res#e"t to su"h a"ts as domesti""or#orations. 2erely en'a'in' in liti'ation has een "onsidered as not asuJ"ient minimum "onta"t to %arrant the e>er"ise of !urisdi"tion o$er aforei'n "or#oration. ; 7<

&s a "onsideration aside, %e ha$e #erfor"e to "omment on #ri$ateres#ondents asis for ar'uin' that #etitioners are arred from maintainin'suit in the hili##ines. or alle'edly ein' forei'n "or#orations doin'

usiness in the hili##ines %ithout a li"ense, #ri$ate res#ondents re#eatedlymaintain in all their #leadin's that #etitioners ha$e there y no le:al

personality to rin' an a"tion efore hili##ine "ourts. ; 8<

&mon' the 'rounds for a motion to dismiss under the Rules of Court arela"9 of le'al "a#a"ity to sue ; /< and that the "om#laint states no "ause of a"tion. ;3+< a"9 of le'al "a#a"ity to sue means that the #lainti is not in thee>er"ise of his "i$il ri'hts, or does not ha$e the ne"essary Buali "ation toa##ear in the "ase, or does not ha$e the "hara"ter or re#resentation he"laims. ;31< n the other hand, a "ase is dismissi le for la"9 of #ersonality tosue u#on #roof that the #lainti is not the real #arty in interest, hen"e'rounded on failure to state a "ause of a"tion. ;3 < he term la"9 of "a#a"ity to

sue should not e "onfused %ith the term la"9 of #ersonality to sue. Fhilethe former refers to a #lainti s 'eneral disa ility to sue, su"h as on a""ountof minority, insanity, in"om#eten"e, la"9 of !uridi"al #ersonality or any other'eneral disBuali "ations of a #arty, the latter refers to the fa"t that the#lainti is not the real #arty in interest. Corres#ondin'ly, the rst "an e a'round for a motion to dismiss ased on the 'round of la"9 of le'al "a#a"ityto sueA ;33< %hereas the se"ond "an e used as a 'round for a motion todismiss ased on the fa"t that the "om#laint, on the fa"e thereof, e$identlystates no "ause of a"tion. ;3*<

&##lyin' the a o$e dis"ussion to the instant #etition, the 'round

a$aila le for arrin' re"ourse to our "ourts y an unli"ensed forei'n"or#oration doin' or transa"tin' usiness in the hili##ines should #ro#erlye la"9 of "a#a"ity to sue, not la"9 of #ersonality to sue. Certainly, a

"or#oration %hose le'al ri'hts ha$e een $iolated is undenia ly su"h, if notthe only, real #arty in interest to rin' suit thereon althou'h, for failure to"om#ly %ith the li"ensin' reBuirement, it is not "a#a"itated to maintain anysuit efore our "ourts.



















astly, on this #oint, %e reiterate this Courts re!e"tion of the "ommon#ro"edural ta"ti"s of errin' lo"al "om#anies %hi"h, %hen sued y unli"ensedforei'n "or#orations not en'a'ed in usiness in the hili##ines, in$o9e thelatters su##osed la"9 of "a#a"ity to sue. he do"trine of la"9 of "a#a"ity tosue ased on failure to rst a"Buire a lo"al li"ense is ased on "onsiderations

of #u li" #oli"y. 4t %as ne$er intended to fa$or nor insulate from suituns"ru#ulous esta lishments or nationals in "ase of rea"h of $alido li'ations or $iolations of le'al ri'hts of unsus#e"tin' forei'n rms orentities sim#ly e"ause they are not li"ensed to do usiness in the "ountry. ;3L<

IIFe no% #ro"eed to the main issue of the retroa"ti$e a##li"ation to the

#resent "ontro$ersy of the rulin' in 8th Century $o9 $il- Corporation vs.Court o# "ppeals, et al. , #romul'ated on &u'ust 1/, 1/88, ;36< that for thedetermination of #ro a le "ause to su##ort the issuan"e of a sear"h %arrantin "o#yri'ht infrin'ement "ases in$ol$in' $ideo'rams, the #rodu"tion of the

master ta#e for "om#arison %ith the alle'edly #irated "o#ies is ne"essary.etitioners assert that the issuan"e of a sear"h %arrant is addressed to

the dis"retion of the "ourt su !e"t to the determination of #ro a le "ause ina""ordan"e %ith the #ro"edure #res"ri ed therefor under Se"tions 3 and * of Rule 1 6. &s of the time of the a##li"ation for the sear"h %arrant in Buestion,the "ontrollin' "riterion for the ndin' of #ro a le "ause %as that enun"iatedin Bur:os vs. Chie# o# Sta< ;37< statin' that:

ro a le "ause for a sear"h %arrant is de ned as su"h fa"ts and"ir"umstan"es %hi"h %ould lead a reasona ly dis"rete and #rudent man to

elie$e that an o ense has een "ommitted and that the o !e"ts sou'ht in

"onne"tion %ith the o ense are in the #la"e sou'ht to e sear"hed.&""ordin' to #etitioners, after "om#lyin' %ith %hat the la% then reBuired,

the lo%er "ourt determined that there %as #ro a le "ause for the issuan"e of a sear"h %arrant, and %hi"h determination in fa"t led to the issuan"e andser$i"e on =e"em er 1*, 1/87 of Sear"h Farrant No. 87 +L3. 4t is furtherar'ued that any sear"h %arrant so issued in a""ordan"e %ith all a##li"a lele'al reBuirements is $alid, for the lo%er "ourt "ould not #ossi ly ha$e eene>#e"ted to a##ly, as the asis for a ndin' of #ro a le "ause for theissuan"e of a sear"h %arrant in "o#yri'ht infrin'ement "ases in$ol$in'$ideo'rams, a #ronoun"ement %hi"h %as not e>istent at the time of su"h

determination, on =e"em er 1*, 1/87, that is, the do"trine in the 8thCentury $o9 "ase that %as #romul'ated only on &u'ust 1/, 1/88, or o$erei'ht months later.

ri$ate res#ondents #redi"ta ly ar'ue in su##ort of the rulin' of theCourt of &##eals sustainin' the Buashal of the sear"h %arrant y the lo%er"ourt on the stren'th of that 8th Century $o9 rulin' %hi"h, they "laim, 'oesinto the $ery essen"e of #ro a le "ause. &t the time of the issuan"e of thesear"h %arrant in$ol$ed here, althou'h the 8th Century $o9 "ase had not









yet een de"ided, Se"tion , &rti"le 444 of the Constitution and Se"tion 3, Rule1 6 of the 1/8L Rules on Criminal ro"edure em odied the #re$ailin' and'o$ernin' la% on the matter. he rulin' in 8th Century $o9 %as merely ana##li"ation of the la% on #ro a le "ause. ?en"e, they #osit that there %as nola% that %as retros#e"ti$ely a##lied, sin"e the la% had een there all

alon'. o refrain from a##lyin' the 8th Century $o9 rulin', %hi"h hadsu#er$ened as a do"trine #romul'ated at the time of the resolution of #ri$ateres#ondents motion for re"onsideration see9in' the Buashal of the sear"h%arrant for failure of the trial "ourt to reBuire #resentation of the masterta#es #rior to the issuan"e of the sear"h %arrant, %ould ha$e "onstituted'ra$e a use of dis"retion. ;38<

Res#ondent "ourt u#held the retroa"ti$e a##li"ation of the 8th Century $o9 rulin' y the trial "ourt in resol$in' #etitioners motion forre"onsideration in fa$or of the Buashal of the sear"h %arrant, on thisreno$ated thesis:

&nd %hether this do"trine should a##ly retroa"ti$ely, it must e noted that inthe +th Century o> "ase, the lo%er "ourt Buashed the earlier sear"h%arrant it issued. n certiorari , the Su#reme Court aJrmed the Buashal onthe 'round amon' others that the master ta#es or "o#yri'hted lms %erenot #resented for "om#arison %ith the #ur"hased e$iden"e of the $ideota#es to determine %hether the latter is an unauthori-ed re#rodu"tion of theformer.

4f the lo%er "ourt in the Century o> "ase did not Buash the %arrant, it is ur$ie% that the Su#reme Court %ould ha$e in$alidated the %arrant !ust thesame "onsiderin' the $ery stri"t reBuirement set y the Su#reme Court forthe determination of #ro a le "ause in "o#yri'ht infrin'ement "ases asenun"iated in this +th Century o> "ase. his is so e"ause, as %as stated

y the Su#reme Court in the said "ase, the master ta#es and the #iratedta#es must e #resented for co-parison to satis#y the re4uire-ent o#

pro1a1le cause. So it 'oes a"9 to the $ery e>isten"e of #ro a le "ause. > >>;3/<

2indful as %e are of the rami "ations of the do"trine of stare decisis andthe rudiments of fair #lay, it is our "onsidered $ie% that the 8th Century $o9 rulin' "annot e retroa"ti$ely a##lied to the instant "ase to !ustify theBuashal of Sear"h Farrant No. 87 +L3. ?erein #etitioners "onsistent #ositionthat the order of the lo%er "ourt of Se#tem er L, 1/88 denyin' thereindefendants motion to lift the order of sear"h %arrant %as #ro#erly issued,there ha$in' een satisfa"tory "om#lian"e %ith the then #re$ailin' standardsunder the la% for determination of #ro a le "ause, is indeed %ell ta9en. helo%er "ourt "ould not #ossi ly ha$e e>#e"ted more e$iden"e from #etitionersin their a##li"ation for a sear"h %arrant other than %hat the la% and







!uris#ruden"e, then e9istin: and =udicially accepted , reBuired %ith res#e"t tothe ndin' of #ro a le "ause.

&rti"le * of the Ci$il Code #ro$ides that (l)a%s shall ha$e no retroa"ti$ee e"t, unless the "ontrary is #ro$ided. Correlati$ely, &rti"le 8 of the sameCode de"lares that (!)udi"ial de"isions a##lyin' the la%s or the Constitutionshall form #art of the le'al system of the hili##ines.

uris#ruden"e, in our system of 'o$ernment, "annot e "onsidered as aninde#endent sour"e of la%A it "annot "reate la%. ;*+< Fhile it is true that

!udi"ial de"isions %hi"h a##ly or inter#ret the Constitution or the la%s are#art of the le'al system of the hili##ines, still they are not la%s. udi"ialde"isions, thou'h not la%s, are nonetheless e$iden"e of %hat the la%s mean,and it is for this reason that they are #art of the le'al system of the

hili##ines. ;*1< udi"ial de"isions of the Su#reme Court assume the sameauthority as the statute itself. ;* <

4nter#retin' the aforeBuoted "orrelated #ro$isions of the Ci$il Code and inli'ht of the a o$e disBuisition, this Court em#hati"ally de"lared in Co vs.Court o# "ppeals, et al . ;*3< that the #rin"i#le of #ros#e"ti$ity a##lies not onlyto ori'inal amendatory statutes and administrati$e rulin's and "ir"ulars, utalso, and #ro#erly so, to !udi"ial de"isions. ur holdin' in the earlier "aseof People vs. Ju1inal ;**< e"hoes the rationale for this !udi"ial de"laration, vi> .:

=e"isions of this Court, althou'h in themsel$es not la%s, are ne$erthelesse$iden"e of %hat the la%s mean, and this is the reason %hy under &rti"le 8of the Ne% Ci$il Code, udi"ial de"isions a##lyin' or inter#retin' the la%s orthe Constitution shall form #art of the le'al system. he inter#retation u#ona la% y this Court "onstitutes, in a %ay, a #art of the la% as of the date thatthe la% %as ori'inally #assed, sin"e this Courts "onstru"tion merelyesta lishes the "ontem#oraneous le'islati$e intent that the la% thus"onstrued intends to e e"tuate. he settled rule su##orted y numerousauthorities is a restatement of the le'al ma>im le:is interpretation le:is vi-o1tinet the inter#retation #la"ed u#on the %ritten la% y a "om#etent "ourthas the for"e of la%. > > >, ut %hen a do"trine of this Court is o$erruled anda di erent $ie% is ado#ted, the ne& doctrine should 1e applied

prospectively, and should not apply to parties &ho had relied on the olddoctrine and acted on the #aith thereo# . > > >. (Stress su##lied).

his %as for"efully reiterated in Spouses Ben>onan vs. Court o# "ppeals,et al. , ;*L< %here the Court e>#ounded:

> > >. ut %hile our de"isions form #art of the la% of the land, they are alsosu !e"t to &rti"le * of the Ci$il Code %hi"h #ro$ides that la%s shall ha$e noretroa"ti$e e e"t unless the "ontrary is #ro$ided. his is e>#ressed in thefamiliar le'al ma>imum le9 prospicit, non respicit , the la% loo9s for%ard not

a"9%ard. he rationale a'ainst retroa"ti$ity is easy to #er"ei$e. he















retroa"ti$e a##li"ation of a la% usually di$ests ri'hts that ha$e alreadye"ome $ested or im#airs the o li'ations of "ontra"t and hen"e, is

un"onstitutional ( ran"is"o v . Certe-a, 3 SCR& L6L ;1/61<). he same"onsideration underlies our rulin's 'i$in' only #ros#e"ti$e e e"t to de"isionsenun"iatin' ne% do"trines. > > >.

he reasonin' ehind Senarillos vs. 0er-osisi-a ;*6< that !udi"ialinter#retation of a statute "onstitutes #art of the la% as of the date it %asori'inally #assed, sin"e the Courts "onstru"tion merely esta lishes the"ontem#oraneous le'islati$e intent that the inter#reted la% "arried intoe e"t, is all too familiar. Su"h !udi"ial do"trine does not amount to the#assa'e of a ne% la% ut "onsists merely of a "onstru"tion or inter#retationof a #re e>istin' one, and that is #re"isely the situation o tainin' in this"ase.

4t is "onseBuently "lear that a !udi"ial inter#retation e"omes a #art of the la% as of the date that la% %as ori'inally #assed, su !e"t only to theBuali "ation that %hen a do"trine of this Court is o$erruled and a di erent$ie% is ado#ted, and more so %hen there is a re$ersal thereof, the ne%do"trine should e a##lied #ros#e"ti$ely and should not a##ly to #arties %horelied on the old do"trine and a"ted in 'ood faith. ;*7< o hold other%ise %ould

e to de#ri$e the la% of its Buality of fairness and !usti"e then, if there is nore"o'nition of %hat had trans#ired #rior to su"h ad!udi"ation. ;*8<

here is merit in #etitioners im#assioned and %ell foundedar'umentation:

he "ase of +th Century o> ilm Cor#oration vs. Court of &##eals, et al.,

16* SCR& 6LL (&u'ust 1/, 1/88) (hereinafter +th Century o>) %asine>istent in =e"em er of 1/87 %hen Sear"h Farrant 87 +L3 %as issued ythe lo%er "ourt. ?en"e, it o''les the ima'ination ho% the lo%er "ourt "ould

e e>#e"ted to a##ly the formulation of +th Century o> in ndin' #ro a le"ause %hen the formulation %as yet non e>istent.

>>> >>> >>>

4n short, the lo%er "ourt %as "on$in"ed at that ti-e after "ondu"tin'sear"hin' e>amination Buestions of the a##li"ant and his %itnesses that ano ense had een "ommitted and that the o !e"ts sou'ht in "onne"tion %iththe o ense (%ere) in the #la"e sou'ht to e sear"hed ( ur'os v . Chief ofSta , et al., 133 SCR& 8++). 4t is indis#uta le, therefore, that at the time ofthe a##li"ation, or on =e"em er 1*, 1/87, the lo%er "ourt did not "ommitany error nor did it fail to "om#ly %ith any le'al reBuirement for the $alidissuan"e of sear"h %arrant.

> > >. (F)e elie$e that the lo%er "ourt should e "onsidered as ha$in'follo%ed the reBuirements of the la% in issuin' Sear"h Farrant No. 87









+L3. he sear"h %arrant is therefore $alid and indin'. 4t must e noted thatno%here is it found in the alle'ations of the Res#ondents that the lo%er "ourtfailed to a##ly the la% as then interpreted in *+ . ?en"e, %e nd it a surdthat it is (si") should e seen other%ise, e"ause it is sim#ly im#ossi le toha$e reBuired the lo%er "ourt to a##ly a formulation %hi"h %ill only e

de ned si> months later.urthermore, it is un!ust and unfair to reBuire "om#lian"e %ith le'al and@or

do"trinal reBuirements %hi"h are ine>istent at the time they %ere su##osedto ha$e een "om#lied %ith.

>>> >>> >>>

> > >. 4f the lo%er "ourts re$ersal %ill e sustained, %hat en"oura'ement "ane 'i$en to "ourts and liti'ants to res#e"t the la% and rules if they "an

e>#e"t %ith reasona le "ertainty that u#on the #assa'e of a ne% rule, their

"ondu"t "an still e o#en to BuestionW his "ertainly reeds insta ility in oursystem of dis#ensin' !usti"e. or etitioners %ho too9 s#e"ial e ort toredress their 'rie$an"es and to #rote"t their #ro#erty ri'hts y resortin' tothe remedies #ro$ided y the la%, it is most unfair that fealty to the rulesand #ro"edures then o tainin' %ould ear ut fruits of in!usti"e. ;*/<

Fithal, e$en the #ro#osition that the #ros#e"ti$ity of !udi"ial de"isionsim#orts a##li"ation thereof not only to future "ases ut also to "ases stillon'oin' or not yet nal %hen the de"ision %as #romul'ated, should not e"ountenan"ed in the !ural s#here on a""ount of its ine$ita ly unsettlin're#er"ussions. 2ore to the #oint, it is felt that the reasona leness of the

added reBuirement in 8th Century $o9 "allin' for the #rodu"tion of themaster ta#es of the "o#yri'hted lms for determination of #ro a le "ause in"o#yri'ht infrin'ement "ases needs re$isitin' and "lari "ation.

4t %ill e re"alled that the 8th Century $o9 "ase arose from sear"h%arrant #ro"eedin's in anti"i#ation of the lin' of a "ase for theunauthori-ed sale or rentin' out of "o#yri'hted lms in $ideota#e format in$iolation of residential =e"ree No. */. 4t re$ol$ed around the meanin' of #ro a le "ause %ithin the "onte>t of the "onstitutional #ro$ision a'ainstille'al sear"hes and sei-ures, as a##lied to "o#yri'ht infrin'ement "asesin$ol$in' $ideota#es.

herein it %as ruled that

he #resentation of master ta#es of the "o#yri'hted lms from %hi"h the#irated lms %ere alle'edly "o#ied, %as ne"essary for the $alidity of sear"h%arrants a'ainst those %ho ha$e in their #ossession the #irated lms. he#etitioners ar'ument to the e e"t that the #resentation of the master ta#esat the time of a##li"ation may not e ne"essary as these %ould e merelye$identiary in nature and not determinati$e of %hether or not a #ro a le





"ause e>ists to !ustify the issuan"e of the sear"h %arrants is notmeritorious. he "ourt "annot #resume that du#li"ate or "o#ied ta#es %erene"essarily re#rodu"ed from master ta#es that it o%ns.

he a##li"ation for sear"h %arrants %as dire"ted a'ainst $ideo ta#e outlets

%hi"h alle'edly %ere en'a'ed in the unauthori-ed sale and rentin' out of"o#yri'hted lms elon'in' to the #etitioner #ursuant to .=. */.

he essen"e of a "o#yri'ht infrin'ement is the similarity or at leastsu stantial similarity of the #ur#orted #irated %or9s to the "o#yri'hted%or9. ?en"e, the a##li"ant must #resent to the "ourt the "o#yri'hted lms to"om#are them %ith the #ur"hased e$iden"e of the $ideo ta#es alle'edly#irated to determine %hether the latter is an unauthori-ed re#rodu"tion ofthe former. his lin9a'e of the "o#yri'hted lms to the #irated lms must eesta lished to satisfy the reBuirements of #ro a le "ause. 2ere alle'ationsas to the e>isten"e of the "o#yri'hted lms "annot ser$e as asis for the

issuan"e of a sear"h %arrant.or a "loser and more #ers#i"uous a##re"iation of the fa"tual

ante"edents of 8th Century $o9 , the #ertinent #ortions of the de"isiontherein are Buoted hereunder, to %it:

4n the instant "ase, the lo%er "ourt lifted the three Buestioned sear"h%arrants a'ainst the #ri$ate res#ondents on the 'round that it a"ted on thea##li"ation for the issuan"e of the said sear"h %arrants and 'ranted it on themisre#resentations of a##li"ant N 4 and its %itnesses that infrin'ement of"o#yri'ht or a #ira"y of a #arti"ular lm ha$e een "ommitted. hus the

lo%er "ourt stated in its Buestioned order dated anuary , 1/86:

&""ordin' to the mo$ant, all three %itnesses durin' the #ro"eedin's in thea##li"ation for the three sear"h %arrants testi ed of their o%n #ersonal9no%led'e. ?et, "tty. "l1ino Reyes o# the @BI stated that the counsel orrepresentative o# the &entieth Century $o9 Corporation &ill testi#y on thevideo cassettes that &ere pirated, so that he did not have personal!no&led:e o# the alle:ed piracy. he &itness Bacani also said that the videocassettes &ere pirated &ithout statin: the -anner it &as pirated and that it&as "tty. 6o-in:o that has !no&led:e o# that #act .

n the #art of &tty. =omin'o, he said that the re ta#in' of the alle'edly#irated ta#es %as from master ta#es alle'edly elon'in' to the %entiethCentury o>, e"ause, a""ordin' to him it is of his #ersonal 9no%led'e.

&t the hearin' of the 2otion for Re"onsideration, Senior N 4 &'ent &tty.&l ino Reyes testi ed that &hen the co-plaint #or in#rin:e-ent &as 1rou:htto the @BI, the -aster tapes o# the alle:edly pirated tapes &ere sho&n tohi- and he -ade co-parisons o# the tapes &ith those purchased 1y their



-an Bacani. Why the -aster tapes or at least the ;l- reels o# the alle:edly pirated tapes &ere not sho&n to the Court durin: the application :ives so-e-is:ivin:s as to the truth o# that 1are state-ent o# the @BI a:ent on the&itness stand .

&'ain as the a##li"ation and sear"h #ro"eedin's is a #relude to the lin' of"riminal "ases under .=. */, the "o#yri'ht infrin'ement la%, and althou'h%hat is reBuired for the issuan"e thereof is merely the #resen"e of #ro a le"ause, that #ro a le "ause must e satisfa"tory to the Court, for it is a timehonored #re"e#t that #ro"eedin's to #ut a man to tas9 as an o ender underour la%s should e inter#reted in strictissi-i =uris a'ainst the 'o$ernmentand li erally in fa$or of the alle'ed o ender.

>>> >>> >>>

his do"trine has ne$er een o$erturned, and as a matter of fa"t it had een

enshrined in the ill of Ri'hts in our 1/73 Constitution.So that lac!in: in persuasive e<ect, the alle:ation that -aster tapes&ere vie&ed 1y the @BI and &ere co-pared to the purchased and sei>edvideo tapes #ro- the respondents esta1lish-ents, it should 1e dis-issed asnot supported 1y co-petent evidence and #or that -atter the pro1a1lecause hovers in that :rey de1ata1le t&ili:ht >one 1et&een 1lac! and &hiteresolva1le in #avor o# respondents herein .

ut the 'larin' fa"t is that Co"oon, the rst $ideo ta#e mentioned in thesear"h %arrant, %as not e$en duly re'istered or "o#yri'hted in the

hili##ines. (&nne> C of ##osition, #. 1L , re"ord.) So that la"9in' in thereBuisite #resentation to the Court of an alle'ed master ta#e for #ur#oses of"om#arison %ith the #ur"hased e$iden"e of the $ideo ta#es alle'edly #iratedand those sei-ed from res#ondents, there %as no %ay to determine %hetherthere really %as #ira"y, or "o#yin' of the lm of the "om#lainant %entiethCentury o>.

>>> >>> >>>

he lo&er court, there#ore, li#ted the three (A) 4uestioned search &arrants inthe a1sence o# pro1a1le cause that the private respondents violated P.6.

'+. "s #ound 1y the court, the @BI a:ents &ho acted as &itnesses did nothave personal !no&led:e o# the su1=ect -atter o# their testi-ony &hich &asthe alle:ed co--ission o# the o<ense 1y the private respondents . nly the#etitioners "ounsel %ho %as also a %itness durin' the a##li"ation for theissuan"e of the sear"h %arrants stated that he had #ersonal 9no%led'e thatthe "on s"ated ta#es o%ned y the #ri$ate res#ondents %ere #irated ta#esta9en from master ta#es elon'in' to the #etitioner. ?o%e$er, the lo%er"ourt did not 'i$e mu"h "reden"e to his testimony in $ie% of the fa"t that the



master ta#es of the alle'edly #irated ta#es %ere not sho%n to the "ourtdurin' the a##li"ation (4tali"s ours).

he itali"i-ed #assa'es readily e>#ose the reason %hy the trial "ourttherein reBuired the #resentation of the master ta#es of the alle'edly #irated

lms in order to "on$in"e itself of the e>isten"e of #ro a le "ause under thefa"tual milieu #e"uliar to that "ase. 4n the "ase at ar, res#ondent a##ellate"ourt itself o ser$ed:

Fe feel that the rationale ehind the aforeBuoted do"trine is that the #irated"o#ies as %ell as the master ta#es, unli9e the other ty#es of #ersonal#ro#erties %hi"h may e sei-ed, &ere availa1le #or presentation to the courtat the ti-e o# the application #or a search &arrant to determine the e>isten"eof the lin9a'e of the "o#yri'hted lms %ith the #irated ones. hus, there isno reason not to #resent them (4tali"s su##lied for em#hasis). ;L+<

4n ne, the su##osed pronuncia-ento in said "ase re'ardin' thene"essity for the #resentation of the master ta#es of the "o#yri'hted lmsfor the $alidity of sear"h %arrants should at most e understood to merelyser$e as a 'uide#ost in determinin' the e>isten"e of #ro a le "ause in"o#yri'ht infrin'ement "ases &here there is dou1t as to the true ne9us1et&een the -aster tape and the pirated copies . &n o !e"ti$e and "arefulreadin' of the de"ision in said "ase "ould lead to no other "on"lusion thanthat said dire"ti$e %as hardly intended to e a s%ee#in' and inHe>i lereBuirement in all or similar "o#yri'ht infrin'ement "ases. Judicialdicta should al%ays e "onstrued %ithin the fa"tual matri> of their#arturition, other%ise a "areless inter#retation thereof "ould unfairly fault the

%riter %ith the $i"e of o$erstatement and the reader %ith the falla"y of undue 'enerali-ation.

4n the "ase at ar, N 4 Senior &'ent auro C. Reyes %ho led thea##li"ation for sear"h %arrant %ith the lo%er "ourt follo%in' a formal"om#laint lod'ed y #etitioners, !ud'in' from his aJda$it ;L1< and hisde#osition, ;L < did testify on matters %ithin his #ersonal 9no%led'e ased onsaid "om#laint of #etitioners as %ell as his o%n in$esti'ation and sur$eillan"eof the #ri$ate res#ondents $ideo rental sho#. i9e%ise, &tty. Ri"o D. =omin'o,in his "a#a"ity as attorney in fa"t, stated in his aJda$it ;L3< and furthere>#ounded in his de#osition ;L*< that he #ersonally 9ne% of the fa"t that#ri$ate res#ondents had ne$er een authori-ed y his "lients to re#rodu"e,lease and #ossess for the #ur#ose of sellin' any of the "o#yri'hted lms.

oth testimonies of &'ent Reyes and &tty. =omin'o %ere "orro orated yRene C. alta-ar, a #ri$ate resear"her retained y 2otion i"tures&sso"iation of &meri"a, 4n". (2 &&, 4n".), %ho %as li9e%ise #resented as a%itness durin' the sear"h %arrant #ro"eedin's. ;LL< he re"ords "learly reHe"tthat the testimonies of the a o$enamed %itnesses %ere strai'htfor%ard andstemmed from matters %ithin their #ersonal 9no%led'e. hey dis#layed















none of the am i$alen"e and un"ertainty that the %itnesses in the 8thCentury $o9 "ase e>hi ited. his "ate'ori"al forthri'htness in theirstatements, amon' others, %as %hat initially and "orre"tly "on$in"ed thetrial "ourt to ma9e a ndin' of the e>isten"e of #ro a le "ause.

here is no ori'inality in the ar'ument of #ri$ate res#ondents a'ainst the$alidity of the sear"h %arrant, o $iously orro%ed from 8th Century $o9 ,that #etitioners %itnesses N 4 &'ent auro C. Reyes, &tty. Ri"o D. =omin'oand Rene C. alta-ar did not ha$e #ersonal 9no%led'e of the su !e"t matterof their res#e"ti$e testimonies and that said %itnesses "laim that the $ideota#es %ere #irated, %ithout statin' the manner y %hi"h these %ere #irated,is a "on"lusion of fa"t %ithout asis. ;L6< he di eren"e, it must e #ointed out,is that the re"ords in the #resent "ase re$eal that (1) there is no alle'ation of misre#resentation, mu"h less a ndin' thereof y the lo%er "ourt, on the#art of #etitioners %itnessesA ( ) there is no denial on the #art of #ri$ateres#ondents that the ta#es sei-ed %ere ille'itimate "o#ies of the "o#yri'htedones nor ha$e they sho%n that they %ere 'i$en any authority y #etitionersto "o#y, sell, lease, distri ute or "ir"ulate, or at least, to o er for sale, lease,distri ution or "ir"ulation the said $ideo ta#esA and (3) a dis"reet ute>tensi$e sur$eillan"e of the sus#e"ted area %as underta9en y #etitioners%itnesses suJ"ient to ena le them to e>e"ute trust%orthy aJda$its andde#ositions re'ardin' matters dis"o$ered in the "ourse thereof and of %hi"hthey ha$e #ersonal 9no%led'e.

4t is e$idently in"orre"t to su''est, as the rulin' in +th Century o> maya##ear to do, that in "o#yri'ht infrin'ement "ases, the #resentation of master ta#es of the "o#yri'hted lms is al%ays ne"essary to meet thereBuirement of #ro a le "ause and that, in the a sen"e thereof, there "an e

no ndin' of #ro a le "ause for the issuan"e of a sear"h %arrant. 4t is truethat su"h master ta#es are o !e"t e$iden"e, %ith the merit that in this "lassof e$iden"e the as"ertainment of the "ontro$erted fa"t is made throu'hdemonstrations in$ol$in' the dire"t use of the senses of the #residin'ma'istrate. ;L7< Su"h au>iliary #ro"edure, ho%e$er, does not rule out the useof testimonial or do"umentary e$iden"e, de#ositions, admissions or other"lasses of e$iden"e tendin' to #ro$e the #actu- pro1andu- , ;L8< es#e"ially%here the #rodu"tion in "ourt of o !e"t e$iden"e %ould result in delay,in"on$enien"e or e>#enses out of #ro#ortion to its e$identiary $alue. ;L/<

f "ourse, as a 'eneral rule, "onstitutional and statutory #ro$isions

relatin' to sear"h %arrants #rohi it their issuan"e e>"e#t on a sho%in' of #ro a le "ause, su##orted y oath or aJrmation. hese #ro$isions #re$entthe issuan"e of %arrants on loose, $a'ue, or dou tful ases of fa"t, andem#hasi-e the #ur#ose to #rote"t a'ainst all 'eneral sear"hes. ;6+< 4ndeed,&rti"le 444 of our Constitution mandates in Se". thereof that no sear"h%arrant shall issue e>"e#t u#on #ro a le "ause to e determined #ersonally

y the !ud'e after e>amination under oath or aJrmation of the "om#lainantand the %itnesses he may #rodu"e, and #arti"ularly des"ri in' the #la"e to













e sear"hed and the thin's to e sei-edA and Se". 3 thereof #ro$ides thatany e$iden"e o tained in $iolation of the #re"edin' se"tion shall einadmissi le for any #ur#ose in any #ro"eedin'.

hese "onstitutional stri"tures are im#lemented y the follo%in'#ro$isions of Rule 1 6 of the Rules of Court:

Se". 3. Re4uisites #or issuin: search &arrant . & sear"h %arrant shall not issueut u#on #ro a le "ause in "onne"tion %ith one s#e"i " o ense to e

determined #ersonally y the !ud'e after e>amination under oath oraJrmation of the "om#lainant and the %itnesses he may #rodu"e, and#arti"ularly des"ri in' the #la"e to e sear"hed and the thin's to e sei-ed.

Se". *. 9a-ination o# co-plainant record . he !ud'e must, efore issuin'the %arrant, #ersonally e>amine in the form of sear"hin' Buestions andans%ers, in %ritin' and under oath the "om#lainant and any %itnesses hemay #rodu"e on fa"ts #ersonally 9no%n to them and atta"h to the re"ordtheir s%orn statements to'ether %ith any aJda$its su mitted.

Se". L. Issuance and #or- o# search &arrant . 4f the !ud'e is thereu#onsatis ed of the e>isten"e of fa"ts u#on %hi"h the a##li"ation is ased, or thatthere is #ro a le "ause to elie$e that they e>ist, he must issue the %arrant,%hi"h must e su stantially in the form #res"ri ed y these Rules.

he "onstitutional and statutory #ro$isions of $arious !urisdi"tionsreBuirin' a sho%in' of #ro a le "ause efore a sear"h %arrant "an e issuedare mandatory and must e "om#lied %ith, and su"h a sho%in' has eenheld to e an unBuali ed "ondition #re"edent to the issuan"e of a %arrant. &sear"h %arrant not ased on #ro a le "ause is a nullity, or is $oid, and theissuan"e thereof is, in le'al "ontem#lation, ar itrary. ;61< 4t ehoo$es us, then,to re$ie% the "on"e#t of #ro a le "ause, rstly, from re#resentati$e holdin'sin the &meri"an !urisdi"tion from %hi"h %e #atterned our do"trines on thematter.

&lthou'h the term #ro a le "ause has een said to ha$e a %ell de nedmeanin' in the la%, the term is e>"eedin'ly diJ"ult to de ne, in this "ase,%ith any de'ree of #re"isionA indeed, no de nition of it %hi"h %ould !ustifythe issuan"e of a sear"h %arrant "an e formulated %hi"h %ould "o$er e$erystate of fa"ts %hi"h mi'ht arise, and no formula or standard, or hard and fastrule, may e laid do%n %hi"h may e a##lied to the fa"ts of e$ery situation.;6 < &s to %hat a"ts "onstitute #ro a le "ause seem in"a#a le of de nition.;63< here is, of ne"essity, no e>a"t test. ;6*<

&t est, the term #ro a le "ause has een understood to mean areasona le 'round of sus#i"ion, su##orted y "ir"umstan"es suJ"ientlystron' in themsel$es to %arrant a "autious man in the elief that the #ersona""used is 'uilty of the o ense %ith %hi"h he is "har'edA ;6L< or the e>isten"e













of su"h fa"ts and "ir"umstan"es as %ould e>"ite an honest elief in areasona le mind a"tin' on all the fa"ts and "ir"umstan"es %ithin the9no%led'e of the ma'istrate that the "har'e made y the a##li"ant for the%arrant is true. ;66<

ro a le "ause does not mean a"tual and #ositi$e "ause, nor does itim#ort a solute "ertainty. he determination of the e>isten"e of #ro a le"ause is not "on"erned %ith the Buestion of %hether the o ense "har'ed has

een or is ein' "ommitted in fa"t, or %hether the a""used is 'uilty orinno"ent, ut only %hether the aJant has reasona le 'rounds for his elief.;67< he reBuirement is less than certainty or proo#, 1ut -ore than suspicionor possi1ility . ;68<

4n hili##ine !uris#ruden"e, #ro a le "ause has een uniformly de ned assu"h fa"ts and "ir"umstan"es %hi"h %ould lead a reasona le, dis"reet and#rudent man to elie$e that an o ense has een "ommitted, and that theo !e"ts sou'ht in "onne"tion %ith the o ense are in the #la"e sou'ht to e

sear"hed.;6/<

4t ein' the duty of the issuin' oJ"er to issue, or refuse toissue, the %arrant as soon as #ra"ti"a le after the a##li"ation therefor isled, ;7+< the fa"ts %arrantin' the "on"lusion of #ro a le "ause must e

assessed at the time of su"h !udi"ial determination y ne"essarily usin' le'alstandards then set #orth in la& and =urisprudence, and not those that have

yet to 1e cra#ted therea#ter .

&s already stated, the de nition of #ro a le "ause enun"iated in Bur:os,Sr. vs. Chie# o# Sta<, et al., supra, visDaDvis the #ro$isions of Se"tions 3 and *of Rule 1 6, %ere the #re$ailin' and "ontrollin' le'al standards, as they"ontinue to e, y %hi"h a ndin' of #ro a le "ause is tested. Sin"e the#ro#rietary of the issuan"e of a sear"h %arrant is to e determined at thetime of the a##li"ation therefor, %hi"h in turn must not e too remote in timefrom the o""urren"e of the o ense alle'ed to ha$e een "ommitted, theissuin' !ud'e, in determinin' the e>isten"e of #ro a le "ause, "an andshould lo'i"ally loo9 to the tou"hstones in the la%s therefore ena"ted andthe de"isions already #romul'ated at the time, and not to those %hi"h hadnot yet e$en een "on"ei$ed or formulated.

4t is %orth notin' that neither the Constitution nor the Rules of Courtattem#t to de ne #ro a le "ause, o $iously for the #ur#ose of lea$in' su"hmatter to the "ourts dis"retion %ithin the #arti"ular fa"ts of ea"h"ase. &lthou'h the Constitution #rohi its the issuan"e of a sear"h %arrant inthe a sen"e of #ro a le "ause, su"h "onstitutional inhi ition does not"ommand the le'islature to esta lish a de nition or formula for determinin'%hat shall "onstitute #ro a le "ause. ;71< hus, Con'ress, des#ite its roadauthority to fashion standards of reasona leness for sear"hes and sei-ures,;7 < does not $enture to ma9e su"h a de nition or standard formulation of #ro a le "ause, nor "ate'ori-e %hat fa"ts and "ir"umstan"es ma9e u# thesame, mu"h less limit the determination thereof to and %ithin the

















"ir"ums"ri#tion of a #arti"ular "lass of e$iden"e, all in deferen"e to !udi"ialdis"retion and #ro ity. ;73<

&""ordin'ly, to restri"t the e>er"ise of dis"retion y a !ud'e y addin' a#arti"ular reBuirement (the #resentation of master ta#es, as intimated

y 8th Century $o9 ) not #ro$ided nor im#lied in the la% for a ndin' of #ro a le "ause is eyond the realm of !udi"ial "om#eten"e orstatemanshi#. 4t ser$es no #ur#ose ut to stultify and "onstri"t the !udi"iouse>er"ise of a "ourt0s #rero'ati$es and to deni'rate the !udi"ial duty of determinin' the e>isten"e of #ro a le "ause to a mere ministerial orme"hani"al fun"tion. here is, to re#eat, no la% or rule %hi"h reBuires thatthe e>isten"e of #ro a le "ause is or should e determined solely y as#e"i " 9ind of e$iden"e. Surely, this "ould not ha$e een "ontem#lated ythe framers of the Constitution, and %e do not elie$e that the Courtintended the statement in 8th Century $o9 re'ardin' master ta#es as thedi"tum for all seasons and reasons in infrin'ement "ases.

urnin' no% to the "ase at ar, it "an e 'leaned from the re"ords thatthe lo%er "ourt follo%ed the #res"ri ed #ro"edure for the issuan"es of asear"h %arrant: (1) the e>amination under oath or aJrmation of the"om#lainant and his %itnesses, %ith them #arti"ularly des"ri in' the #la"e to

e sear"hed and the thin's to e sei-edA ( ) an e>amination #ersonally"ondu"ted y the !ud'e in the form of sear"hin' Buestions and ans%ers, in%ritin' and under oath of the "om#lainant and %itnesses on fa"ts #ersonally9no%n to themA and, (3) the ta9in' of s%orn statements, to'ether %ith theaJda$its su mitted, %hi"h %ere duly atta"hed to the re"ords.

hereafter, the "ourt a 4uo made the follo%in' fa"tual ndin's leadin' tothe issuan"e of the sear"h %arrant no% su !e"t to this "ontro$ersy:

4n the instant "ase, the follo%in' fa"ts ha$e een esta lished: (1)"o#yri'hted $ideo ta#es earin' titles enumerated in Sear"h Farrant No. 87+L3 %ere ein' sold, leased, distri uted or "ir"ulated, or o ered for sale,lease, distri ution, or transferred or "aused to e transferred y defendantsat their $ideo outlets, %ithout the %ritten "onsent of the #ri$ate"om#lainants or their assi'neeA ( ) re"o$ered or "on s"ated fromdefendants0 #ossession %ere $ideo ta#es "ontainin' "o#yri'hted motion#i"ture lms %ithout the authority of the "om#lainantA (3) the $ideo ta#esori'inated from s#urious or unauthori-ed #ersonsA and (*) said $ideo ta#es

%ere e>a"t re#rodu"tions of the lms listed in the sear"h %arrant %hose"o#yri'hts or distri ution ri'hts %ere o%ned y "om#lainants.

he asis of these fa"ts are the aJda$its and de#ositions of N 4 Senior&'ent auro C. Reyes, &tty. Ri"o D. =omin'o, and Rene C. alta-ar. 2otion

i"tures &sso"iation of &meri"a, 4n". (2 &&) thru their "ounsel, &tty. Ri"o D.=omin'o, led a "om#laint %ith the National ureau of 4n$esti'ation a'ainst"ertain $ideo esta lishments one of %hi"h is defendant, for $iolation of =





No. */ as amended y = No, 1/88. &tty. auro C. Reyes led a team to"ondu"t dis"reet sur$eillan"e o#erations on said $ideo esta lishments. erinformation earlier 'athered y &tty. =omin'o, defendants %ere en'a'ed inthe ille'al sale, rental, distri ution, "ir"ulation or #u li" e>hi ition of"o#yri'hted lms of 2 && %ithout its %ritten authority or its

mem ers. Pno%in' that defendant Sunshine ?ome Dideo and its #ro#rietor,2r. =anilo elindario, %ere not authori-ed y 2 && to re#rodu"e, lease, and#ossess for the #ur#ose of sellin' any of its "o#yri'hted motion #i"tures, heinstru"ted his resear"her, 2r. Rene alta-ar to rent t%o $ideo "assettes fromsaid defendants on "to er 1, 1/87. Rene C. alta-ar #ro"eeded toSunshine ?ome Dideo and rented ta#es "ontainin' ittle Sho# of ?orror. ?e%as issued rental sli# No. 636 dated "to er 1, 1/87 for 1+.++ %ith ade#osit of 1++.++. &'ain, on =e"em er 11, 1/87, he returned to Sunshine?ome Dideo and rented Ro o"o# %ith a rental sli# No. L 71 alsofor 1+.++. n the asis of the "om#laint of 2 && thru "ounsel, &tty. auro C.Reyes #ersonally %ent to Sunshine ?ome Dideo at No. 6 2ayfair Center,

2a'allanes Commer"ial Center, 2a9ati.?is last $isit %as on =e"em er 7,1/87. here, he found the $ideo outlet rentin', leasin', distri utin' $ideo"assette ta#es %hose titles %ere "o#yri'hted and %ithout the authority of2 &&.

Gi$en these fa"ts, a #ro a le "ause e>ists. > > >. ;7*<

he lo%er "ourt su seBuently e>e"uted a volteD#ace , des#ite its #riordetailed and su stantiated ndin's, y statin' in its order of No$em er ,1/88 denyin' #etitioners motion for re"onsideration and Buashin' the sear"h%arrant that

> > >. he t%o ( ) "ases ha$e a "ommon fa"tual milieuA oth in$ol$e alle'ed#irated "o#yri'hted lms of #ri$ate "om#lainants %hi"h %ere found in the#ossession or "ontrol of the defendants. ?en"e, the ne"essity of the#resentation of the master ta#es from %hi"h the #irated lms %ere alle'edly"o#ied is ne"essary in the instant "ase, to esta lish the e>isten"e of #ro a le"ause. ;7L<

ein' ased solely on an un!usti a le and im#ro#er retroa"ti$ea##li"ation of the master ta#e reBuirement 'enerated y 8th Century $o9 u#on a fa"tual situation "om#letely di erent from that in the "ase at ar,and %ithout anythin' more, this later order "learly de es elemental fair #layand is a 'ross re$ersi le error. 4n fa"t, this o ser$ation of the Court in %aChe-ise %acoste, S.". vs. $ernande>, et al ., supra , may !ust as easily a##lyto the #resent "ase:

& re$ie% of the 'rounds in$o9ed > > > in his motion to Buash the sear"h%arrants re$eals the fa"t that they are not a##ro#riate for Buashin' a







%arrant. hey are matters of defense %hi"h should e $entilated durin' thetrial on the merits of the "ase. > > >

&s "orre"tly #ointed out y #etitioners, a lind es#ousal of the reBuisite of #resentation of the master ta#es in "o#yri'ht infrin'ement "ases, as the

#rime determinant of #ro a le "ause, is too e>a"tin' and im#ra"ti"a le areBuirement to e "om#lied %ith in a sear"h %arrant a##li"ation %hi"h, itmust not e o$erloo9ed, is only an an"illary #ro"eedin'. urther, on realisti""onsiderations, a stri"t a##li"ation of said reBuirement militates a'ainst theelements of se"re"y and s#eed %hi"h underlie "o$ert in$esti'ati$e andsur$eillan"e o#erations in #oli"e enfor"ement "am#ai'ns a'ainst all forms of "riminality, "onsiderin' that the master ta#es of a motion #i"ture reBuired to

e #resented efore the "ourt "onsists of se$eral reels "ontained in "ir"ularsteel "asin's %hi"h, e"ause of their ul9, %ill de nitely dra% attention,unli9e diminuti$e o !e"ts li9e $ideo ta#es %hi"h "an e easily "on"ealed.;76< Fith hundreds of titles ein' #irated, this onerous and tedious im#osition

%ould e multi#lied a hundredfold y !udi"ial at, dis"oura'in' and#re$entin' le'al re"ourses in forei'n !urisdi"tions.

Gi$en the #resent international a%areness and furor o$er $iolations inlar'e s"ale of intelle"tual #ro#erty ri'hts, "allin' for transnational san"tions,it ears "allin' to mind the Courts admonition also in %a Che-ise %acoste,supra , that

> > >. ud'es all o$er the "ountry are %ell ad$ised to remem er that "ourt#ro"esses should not e used as instruments to, un%ittin'ly or other%ise, aid"ounterfeiters and intelle"tual #irates, tie the hands of the la% as it see9s to#rote"t the ili#ino "onsumin' #u li" and frustrate e>e"uti$e andadministrati$e im#lementation of solemn "ommitments #ursuant tointernational "on$entions and treaties.

III he amendment of Se"tion L6 of residential =e"ree No. */ y

residential =e"ree No. 1/87, ;77< %hi"h should here e #u li"i-ed !udi"ially,rou'ht a out the re$ision of its #enalty stru"ture and enumerated additional

a"ts "onsidered $iolati$e of said de"ree on intelle"tual #ro#erty, namely, (1)dire"tly or indire"tly transferrin' or "ausin' to e transferred any soundre"ordin' or motion #i"ture or other audio $isual %or9s so re"orded %ithintent to sell, lease, #u li"ly e>hi it or "ause to e sold, leased or #u li"lye>hi ited, or to use or "ause to e used for #ro t su"h arti"les on %hi"hsounds, motion #i"tures, or other audio $isual %or9s are so transferred%ithout the %ritten "onsent of the o%ner or his assi'neeA ( ) sellin', leasin',distri utin', "ir"ulatin', #u li"ly e>hi itin', or o erin' for sale, lease,distri ution, or #ossessin' for the #ur#ose of sale, lease, distri ution,"ir"ulation or #u li" e>hi ition any of the a o$ementioned arti"les, %ithoutthe %ritten "onsent of the o%ner or his assi'neeA and, (3) dire"tly or







indire"tly o erin' or ma9in' a$aila le for a fee, rental, or any other form of "om#ensation any eBui#ment, ma"hinery, #ara#hernalia or any material %iththe 9no%led'e that su"h eBui#ment, ma"hinery, #ara#hernalia or material%ill e used y another to re#rodu"e, %ithout the "onsent of the o%ner, any#hono'ra#h re"ord, dis", %ire, ta#e, lm or other arti"le on %hi"h sounds,

motion #i"tures or other audio $isual re"ordin's may e transferred, and%hi"h #ro$ide distin"t ases for "riminal #rose"ution, ein' "rimesinde#endently #unisha le under residential =e"ree No. */, as amended,aside from the a"t of infrin'in' or aidin' or a ettin' su"h infrin'ement underSe"tion /.

he trial "ourts ndin' that #ri$ate res#ondents "ommitted a"ts inlatant trans'ression of residential =e"ree No. */ all the more olsters itsndin's of #ro a le "ause, %hi"h determination "an e rea"hed e$en in the

a sen"e of master ta#es y the !ud'e in the e>er"ise of sounddis"retion. he e>e"uti$e "on"ern and resol$e e>#ressed in the fore'oin'amendments to the de"ree for the #rote"tion of intelle"tual #ro#erty ri'htsshould e mat"hed y "orres#ondin' !udi"ial $i'ilan"e and a"ti$ism, insteadof the a#athy of su mittin' to te"hni"alities in the fa"e of am#le e$iden"e of 'uilt.

he essen"e of intelle"tual #ira"y should e essayed in "on"e#tual termsin order to unders"ore its 'ra$ity y an a##ro#riate understandin'thereof. 4nfrin'ement of a "o#yri'ht is a tres#ass on a #ri$ate domain o%nedand o""u#ied y the o%ner of the "o#yri'ht, and, therefore, #rote"ted yla%, and infrin'ement of "o#yri'ht, or #ira"y, %hi"h is a synonymous term inthis "onne"tion, "onsists in the doin' y any #erson, %ithout the "onsent of the o%ner of the "o#yri'ht, of anythin' the sole ri'ht to do %hi"h is "onferred

y statute on the o%ner of the "o#yri'ht. ;78<

& "o#y of a #ira"y is an infrin'ement of the ori'inal, and it is no defensethat the #irate, in su"h "ases, did not 9no% %hat %or9s he %as indire"tly"o#yin', or did not 9no% %hether or not he %as infrin'in' any "o#yri'htA heat least 9ne% that %hat he %as "o#yin' %as not his, and he "o#ied at his#eril. 4n determinin' the Buestion of infrin'ement, the amount of matter"o#ied from the "o#yri'hted %or9 is an im#ortant "onsideration. o"onstitute infrin'ement, it is not ne"essary that the %hole or e$en a lar'e#ortion of the %or9 shall ha$e een "o#ied. 4f so mu"h is ta9en that the $alueof the ori'inal is sensi ly diminished, or the la ors of the ori'inal author are

su stantially and to an in!urious e>tent a##ro#riated y another, that issuJ"ient in #oint of la% to "onstitute a #ira"y. ;7/< he Buestion of %hetherthere has een an a"tiona le infrin'ement of a literary, musi"al, or artisti"%or9 in motion #i"tures, radio or tele$ision ein' one of fa"t, ;8+< it should#ro#erly e determined durin' the trial. hat is the sta'e "allin' for"on"lusi$e or #re#onderatin' e$iden"e, and not the summary #ro"eedin' forthe issuan"e of a sear"h %arrant %herein oth lo%er "ourts erroneouslyreBuire the master ta#es.









4n disre'ardin' #ri$ate res#ondents ar'ument that Sear"h Farrant No.87 +L3 is a 'eneral %arrant, the lo%er "ourt o ser$ed that it %as %orded in amanner that the enumerated sei-a le items ear dire"t relation to theo ense of $iolation of Se". L6 of = */ as amended. 4t authori-ed only thesei-ur(e) of arti"les used or intended to e used in the unla%ful sale, lease

and other un"on"erted a"ts in $iolation of = */ as amended. > > >.;81<

n this #oint, Bache and Co., (Phil.), Inc., et al. vs. Rui>, et al ., ;8 < instru"tsand enli'htens:

& sear"h %arrant may e said to #arti"ularly des"ri e the thin's to e sei-ed%hen the des"ri#tion therein is as s#e"i " as the "ir"umstan"es %illordinarily allo% ( eo#le vs. Ru io, L7 hil. 38*)A or %hen the des"ri#tione>#resses a "on"lusion of fa"t not of la% y %hi"h the %arrant oJ"er may e'uided in ma9in' the sear"h and sei-ure ( ide- ., dissent of & ad Santos, J.,)Aor %hen the thin's des"ri ed are limited to those %hi"h ear dire"t relationto the o ense for %hi"h the %arrant is ein' issued (Se". , Rule 1 6,Re$ised Rules of Court). > > >. 4f the arti"les desired to e sei-ed ha$e anydire"t relation to an o ense "ommitted, the a##li"ant must ne"essarily ha$esome e$iden"e, other than those arti"les, to #ro$e the said o enseA and thearti"les su !e"t of sear"h and sei-ure should "ome in handymerelyto stren'then su"h e$iden"e. > > >.

n #ri$ate res#ondents a$erment that the sear"h %arrant %as madea##li"a le to more than one s#e"i " o ense on the 'round that there are asmany o enses of infrin'ement as there are ri'hts #rote"ted and, therefore,to issue one sear"h %arrant for all the mo$ie titles alle'edly #irated $iolatesthe rule that a sear"h %arrant must e issued only in "onne"tion %ith ones#e"i " o ense, the lo%er "ourt said:

> > >. &s the fa"e of the sear"h %arrant itself indi"ates, it %as issued for$iolation of Se"tion L6, = */ as amended only. he s#e"i "ations therein (in&nne> &) merely refer to the titles of the "o#yri'hted motion #i"tures@ lms

elon'in' to #ri$ate "om#lainants %hi"h defendants %ere in"ontrol@#ossession for sale, lease, distri ution or #u li" e>hi ition in"ontra$ention of Se". L6, = */ as amended. ;83<

hat there %ere se$eral "ounts of the o ense of "o#yri'ht infrin'ement andthe sear"h %arrant un"o$ered se$eral "ontra and items in the form of #irated $ideo ta#es is not to e "onfused %ith the num er of o enses"har'ed. he sear"h %arrant herein issued does not $iolate the one s#e"i "o ense rule.

4t is #ointless for #ri$ate res#ondents to insist on "om#lian"e %ith there'istration and de#osit reBuirements under residential =e"ree No. */ as#rereBuisites for in$o9in' the "ourts #rote"ti$e mantle in "o#yri'htinfrin'ement "ases. &s e>#lained y the "ourt elo%:









=efendants mo$ants "ontend that = */ as amended "o$ers only #rodu"ers%ho ha$e "om#lied %ith the reBuirements of de#osit and noti"e (in other%ords re'istration) under Se"tions */ and L+ thereof.& sent su"hre'istration, as in this "ase, there %as no ri'ht "reated, hen"e, noinfrin'ement under = */ as amended. his is not %ell ta9en.

&s "orre"tly #ointed out y #ri$ate "om#lainants o##ositors, the =e#artmentof usti"e has resol$ed this le'al Buestion as far a"9 as =e"em er 1 , 1/78in its #inion No. 1/1 of the then Se"retary of usti"e Di"ente & ad Santos%hi"h stated that Se"tions 6 and L+ do not a##ly to "inemato'ra#hi" %or9sand = No. */ had done a%ay %ith the re'istration and de#osit of"inemato'ra#hi" %or9s and that e$en %ithout #rior re'istration and de#ositof a %or9 %hi"h may e entitled to #rote"tion under the =e"ree, the "reator"an le a"tion for infrin'ement of its ri'hts. ?e "annot demand, ho%e$er,#ayment of dama'es arisin' from infrin'ement. he same o#inion stressedthat the reBuirements of re'istration and de#osit are thus retained under the

=e"ree, not as "onditions for the a"Buisition of "o#yri'ht and other ri'hts,ut as #rereBuisites to a suit for dama'es. he statutory inter#retation of theE>e"uti$e ran"h ein' "orre"t, is entitled (to) %ei'ht and res#e"t.

>>> >>> >>>

=efendants mo$ants maintain that "om#lainant and his %itnesses led theCourt to elie$e that a "rime e>isted %hen in fa"t there %as none. his is%ron'. &s earlier dis"ussed, = */ as amended, does not reBuire re'istrationand de#osit for a "reator to e a le to le an a"tion for infrin'ement of hisri'hts. hese "onditions are merely #re reBuisites to an a"tion for

dama'es. So, as lon' as the #ros"ri ed a"ts are sho%n to e>ist, an a"tion forinfrin'ement may e initiated. ;8*<

&""ordin'ly, the "erti "ations ;8L< from the Co#yri'ht Se"tion of the Nationali rary, #resented as e$iden"e y #ri$ate res#ondents to sho% non

re'istration of some of the lms of #etitioners, assume no e$identiary %ei'htor si'ni "an"e, %hatsoe$er.

urthermore, a "loser re$ie% of residential =e"ree No. */ re$eals thate$en %ith res#e"t to %or9s %hi"h are reBuired under Se"tion 6 thereof to ere'istered and %ith "o#ies to e de#osited %ith the National i rary, su"h as

oo9s, in"ludin' "om#osite and "y"lo#edi" %or9s, manus"ri#ts, dire"toriesand 'a-etteersA and #eriodi"als, in"ludin' #am#hlets and ne%s#a#ersAle"tures, sermons, addresses, dissertations #re#ared for oral deli$eryA andletters, the failure to "om#ly %ith said reBuirements does not de#ri$e the"o#yri'ht o%ner of the ri'ht to sue for infrin'ement. Su"h non "om#lian"emerely limits the remedies a$aila le to him and su !e"ts him to the"orres#ondin' san"tion.







he reason for this is e>#ressed in Se"tion of the de"ree %hi"h #refa"esits enumeration of "o#yri'hta le %or9s %ith the e>#li"it statement that theri'hts 'ranted under this =e"ree shall, from the moment of "reation, su sist%ith res#e"t to any of the follo%in' "lasses of %or9s. his means that underthe #resent state of the la%, the "o#yri'ht for a %or9 is a"Buired y an

intelle"tual "reator from the moment of "reation e$en in the a sen"e of re'istration and de#osit. &s has een authoritati$ely "lari ed:

he re'istration and de#osit of t%o "om#lete "o#ies or re#rodu"tions of the%or9 %ith the National i rary %ithin three %ee9s after the rst #u li"dissemination or #erforman"e of the %or9, as #ro$ided for in Se"tion 6 ( .=.No. */, as amended), is not for the #ur#ose of se"urin' a "o#yri'ht of the%or9, ut rather to a$oid the #enalty for non "om#lian"e of the de#osit ofsaid t%o "o#ies and in order to re"o$er dama'es in an infrin'ement suit. ;86<

ne distressin' o ser$ation. his "ase has een fou'ht on the asis of,

and its resolution lon' delayed y resort to, te"hni"alities to a $irtuallya usi$e e>tent y #ri$ate res#ondents, %ithout so mu"h as an attem#t toaddu"e any "redi le e$iden"e sho%in' that they "ondu"t their usinessle'itimately and fairly. he fa"t that #ri$ate res#ondents "ould not sho%#roof of their authority or that there %as "onsent from the "o#yri'ht o%nersfor them to sell, lease, distri ute or "ir"ulate #etitioners "o#yri'hted lmsimmeasura ly olsters the lo%er "ourts initial ndin' of #ro a le "ause. hat#ri$ate res#ondents are li"ensed y the Dideo'ram Re'ulatory oard doesnot insulate them from "riminal and "i$il lia ility for their unla%ful usiness#ra"ti"es. Fhat is more de#lora le is that the re#rehensi le a"ts of someuns"ru#ulous "hara"ters ha$e sti'mati-ed the hili##ines %ith an unsa$ory

re#utation as a hu for intelle"tual #ira"y in this #art of the 'lo e, formerly inthe re"ords of the General &'reement on ari s and rade and, no%, of theForld rade r'ani-ation. Su"h a"ts must not e 'lossed o$er ut should edenoun"ed and re#ressed lest the hili##ines e"ome an international #ariahin the 'lo al intelle"tual "ommunity.

H R 8!R , the assailed !ud'ment and resolution of res#ondent Courtof &##eals, and ne"essarily in"lusi$e of the order of the lo%er "ourt datedNo$em er , 1/88, are here y REDERSE= and SE &S4=E . he order of the"ourt a 4uo of Se#tem er L, 1/88 u#holdin' the $alidity of Sear"h FarrantNo. 87 +L3 is here y RE4NS & E=, and said "ourt is =4REC E= to ta9e ande>#editiously #ro"eed %ith su"h a##ro#riate #ro"eedin's as may e "alledfor in this "ase. re le "osts are further assessed a'ainst #ri$ateres#ondents.

S! !RD R D.





NBI MICR!S!8T C!R !RATI!N 9!TUS D 9! M NTC!R ., petitioners, vs . UDY C. H ANG, B NIT! H Y !NN

. CHUA B 9TR!N C!M UT R HI9I IN S INC., !NATHAN .CHUA, MI9Y . CHUA, B NIT! T. SANCH ?, NANCY I. 9ASC!,A98!NS! CHUA, A9B RT! CHUA, S! HIA !NG, D ANNA

CHUA TAI AN MACHIN RY DIS 9AY TRAD C NT R, INC., a%&TH S CR TARY !8 USTIC , respondents .

D C I S I ! NCAR I!, J .>

Th" Ca$"

his is a #etition for certiorari ;1< of the Resolutions ; < of the =e#artment of

usti"e dismissin' for la"9 of merit and insuJ"ien"y of e$iden"e #etitioner2i"rosoft Cor#orations "om#laint a'ainst res#ondents for "o#yri'htinfrin'ement and unfair "om#etition.

Th" 8ac'$

etitioner 2i"rosoft Cor#oration (2i"rosoft), a =ela%are, Knited States"or#oration, o%ns the "o#yri'ht and trademar9 to se$eral "om#utersoft%are. ;3< Res#ondents enito Peh and I$onne Peh are the

resident@2ana'in' =ire"tor and General 2ana'er, res#e"ti$ely, of res#ondent eltron Com#uter hili##ines, 4n". ( eltron), a domesti""or#oration. Res#ondents onathan P. Chua, Emily P. Chua, enito .San"he-, and Nan"y 4. Delas"o are eltrons =ire"tors. n the other hand,res#ondents &lfonso Chua, &l erto Chua, udy P. Chua ?%an', So#hia n',and =eanna Chua are the =ire"tors of res#ondent ai%an 2a"hinery =is#layO rade Center, 4n". ( 2 C), also a domesti" "or#oration. ;*<

4n 2ay 1//3, 2i"rosoft and eltron entered into a i"ensin' &'reement(&'reement). Knder Se"tion (a) of the &'reement, as amended in anuary1//*, 2i"rosoft authori-ed eltron, for a fee, to:

(i) >>> re#rodu"e and install no more than one (1) "o#y of ;2i"rosoft<soft%are on ea"h Customer System hard dis9 or Read nly 2emory (R 2)A;and<

(ii) >>> distri ute dire"tly or indire"tly and li"ense "o#ies of the rodu"t(re#rodu"ed as #er Se"tion (a)(i) and@or a"Buired from &uthori-ed Re#li"atoror &uthori-ed =istri utor) in o !e"t "ode form to end users;.< >>>> ;L<

http://sc.judiciary.gov.ph/jurisprudence/2005/jun2005/147043.htm#_ftn1












he &'reement also authori-ed 2i"rosoft and eltron to terminate the"ontra"t if the other fails to "om#ly %ith any of the &'reements #ro$isions.2i"rosoft terminated the &'reement e e"ti$e une 1//L for eltrons non#ayment of royalties. ;6<

&fter%ards, 2i"rosoft learned that res#ondents %ere ille'ally "o#yin' andsellin' 2i"rosoft soft%are. ConseBuently, 2i"rosoft, throu'h its hili##inea'ent, ;7< hired the ser$i"es of in9erton Consultin' Ser$i"es ( CS), a #ri$atein$esti'ati$e rm. 2i"rosoft also sou'ht the assistan"e of the National

ureau of 4n$esti'ation (N 4). n 1+ No$em er 1//L, CS em#loyee ohnenedi" ;8< Sa"ri- (Sa"ri-) and N 4 a'ent =ominador Samiano, r. (Samiano),

#osin' as re#resentati$es of a "om#uter sho#, ;/< ou'ht "om#uter hard%are("entral #ro"essin' unit (C K) and "om#uter monitor) and soft%are (1"om#uter dis9s (C=s) in read only memory (R 2) format) from res#ondents.

he C K "ontained #re installed ;1+<2i"rosoft Findo%s 3.1 and 2S = Ssoft%are. he 1 C= R 2s, en"ased in #lasti" "ontainers %ith 2i"rosoft#a"9a'in', also "ontained 2i"rosoft soft%are. ;11< &t least t%o of the C= R 2s%ere installers, so "alled e"ause they "ontain se$eral soft%are (2i"rosoftonly or oth 2i"rosoft and non 2i"rosoft). ;1 < Sa"ri- and Samiano %ere not'i$en the 2i"rosoft end user li"ense a'reements, users manuals, re'istration"ards or "erti "ates of authenti"ity for the arti"les they #ur"hased. here"ei#t issued to Sa"ri- and Samiano for the C K and monitor ore theheadin' .2. .C. ( ?4 S.) 4NC. E R N C 2 K ER. ;13< he re"ei#t for the 1C= R 2s did not indi"ate its sour"e althou'h the name Gerlie a##ears elo%the entry deli$ered y. ;1*<

n 17 No$em er 1//L, 2i"rosoft a##lied for sear"h %arrants a'ainstres#ondents in the Re'ional rial Court, ran"h 3, 2anila (R C). ;1L< he R C

'ranted 2i"rosofts a##li"ation and issued t%o sear"h %arrants (Sear"hFarrant Nos. /L 68* and /L 68L). ;16< Ksin' Sear"h Farrant Nos. /L 68* and/L 68L, the N 4 sear"hed the #remises of eltron and 2 C and sei-edse$eral "om#uter related hard%are, soft%are, a""essories, and#ara#hernalia. &mon' these %ere 2, 31 #"c"$ o CD+R!M$ "ontainin'2i"rosoft soft%are. ;17<

ased on the arti"les o tained from res#ondents, 2i"rosoft and a "ertainotus =e$elo#ment Cor#oration ( otus Cor#oration) "har'ed res#ondentsefore the =e#artment of usti"e (= ) %ith "o#yri'ht infrin'ement under

Se"tion L(&) in relation to Se"tion / of residential =e"ree No. */, as

amended, ( = */);18<

and %ith unfair "om#etition under &rti"le 18/(1);1/<

of the Re$ised enal Code. 4n its Com#laint (4.S. No. /6 1/3), %hi"h the N 4indorsed, 2i"rosoft alle'ed that res#ondents ille'ally "o#ied and sold2i"rosoft soft%are. ; +<

4n their !oint "ounter aJda$it, res#ondents I$onne Peh (res#ondent Peh)and Emily P. Chua (res#ondent Chua) denied the "har'es a'ainstres#ondents. Res#ondents Peh and Chua alle'ed that: (1) 2i"rosofts realintention in lin' the "om#laint under 4.S. No. /6 1/3 %as to #ressure eltron

































to #ay its alle'ed un#aid royalties, thus 2i"rosoft should ha$e led a"olle"tion suit instead of a "riminal "om#laintA ( ) 2 C ou'ht the"on s"ated L/ o>es of 2S = S C=s from a 2i"rosoft dealer in Sin'a#ore(R.R. =onnelly)A (3) res#ondents are not the sour"e of the 2i"rosoft Findo%s3.1 soft%are #re installed in the C K ou'ht y Sa"ri- and Samiano, ut only

of the 2S = S soft%areA (*) 2i"rosofts alle'ed #roof of #ur"hase (re"ei#t) forthe 1 C= R 2s is in"on"lusi$e e"ause the re"ei#t does not indi"ate itssour"eA and (L) res#ondents enito Peh, onathan P. Chua, &lfonso Chua,&l erto Chua, udy P. Chua ?%an', So#hia n', and =eanna Chua aresto"9holders of eltron and 2 C in name only and thus "annot e held"riminally lia le. ; 1<

he other res#ondents did not le "ounter aJda$its.

2ean%hile, res#ondents mo$ed to Buash Sear"h Farrant Nos. /L 68*and /L 68L. he R C #artially 'ranted their motion in its rder of 16 &#ril1//6. 2i"rosoft sou'ht re"onsideration ut the R C denied 2i"rosofts motion

in its rder of 1/ uly 1//6. 2i"rosoft a##ealed to the Court of &##eals in C&G.R. CD No. L*6++. 4n its =e"ision of / No$em er ++1, the Court of &##eals 'ranted 2i"rosofts a##eal and set aside the R C rders of 16 &#ril1//6 and 1/ uly 1//6. he Court of &##eals =e"ision e"ame nal on 7=e"em er ++1.

Th" D! R"$o4/'#o%$

4n the Resolution of 6 "to er 1///, = State rose"utor o"elyn &. n'

(State rose"utor n') re"ommended the dismissal of 2i"rosofts "om#laintfor la"9 of merit and insuJ"ien"y of e$iden"e. State rose"utor n' alsore"ommended the dismissal of otus Cor#orations "om#laint for la"9 of interest to #rose"ute and for insuJ"ien"y of e$iden"e. &ssistant Chief State

rose"utor ualhati R. uenafe (&ssistant Chief State rose"utor uenafe)a##ro$ed State rose"utor n's re"ommendations. ; < he 6 "to er 1///Resolution reads in #art:

; <%o ( ) issues ha$e to e resol$ed in this "ase, namely:

a) Fhether or not eltron Com#uter and@or its sto"9holders should e

held lia le for the o enses "har'ed.) Fhether or not #rima fa"ie "ase e>ist;s< a'ainst ai%an 2a"hinery

=is#lay and rade Center, 4n". ( 2 C) for $iolation of the o ense"har'ed.

Com#lainant had alle'ed that from the time the li"ense a'reement %asterminated, res#ondent@s is@are no lon'er authori-ed to "o#y@distri ute@sell2i"rosoft #rodu"ts. ?o%e$er, res#ondent@s a$erred that the "ase is "i$il in







nature, not "riminal, "onsiderin' that the "ase stemmed only out of thedesire of "om#lainant to "olle"t from them the amount of KSZ13L,1 1.3and that the "ontra"t entered into y the #arties "annot e unilaterallyterminated.

4n the order of ?onora le Filliam ayhon dated uly 1/, 1//6 ;denyin're"onsideration to the rder #artially Buashin' the sear"h %arrants<, heo ser$ed the follo%in':

4t is further ar'ued y "ounsel for res#ondent that the a"t ta9en y #ri$ate"om#lainant is to s#ite re$en'e a'ainst the res#ondent eltron for the latterfailed to #ay the alle'ed monetary o li'ation in the amount ofKSZ13L,1 1.3 . hat res#ondent has some monetary o li'ation to"om#lainant %hi"h is not denied y the "om#lainant.

;<4t a##ears therefore that #rior to the issuan"e of the su !e"t sear"h

%arrants, "om#lainant had some usiness transa"tions %ith the res#ondent; eltron< alon' the same line of #rodu"ts. Com#lainant failed to re$eal thetrue "ir"umstan"es e>istin' et%een the t%o of them as it no% a##ears,indeed the sear"h %arrant;s< >>> ;are< ein' used as a le$era'e to se"ure"olle"tion of the money o li'ation %hi"h the Court "annot allo%.

rom said order, it "an e 'leaned that the ;R C< >>>, had admitted that thesear"h %arrants a##lied for y "om#lainant %ere merely used as a le$era'efor the "olle"tion of the alle'ed monetary o li'ation of the res#ondent@s.

rom said order, it "an e surmise (si") that the o li'ations et%een the

#arties is "i$il in nature not "riminal.

2oreo$er, "om#lainant had time and a'ain har#ed that res#ondent@s is@arenot authori-ed to sell@"o#y@distri ute 2i"rosoft #rodu"ts at the time of thee>e"ution of the sear"h %arrants. Still, this oJ"e has no #o%er to #ass u#onsaid issue for one has then to inter#ret the #ro$isions of the "ontra"t enteredinto y the #arties, %hi"h Buestion, should e raised in a #ro#er "i$il#ro"eedin'.

&""ordin'ly, a sen;t< a resolution from the #ro#er "ourt of (si") %hether ornot the "ontra"t is still indin' et%een the #arties at the time of thee>e"ution of the sear"h %arrants, this oJ"e "annot #ass u#on the issue of%hether res#ondent@s is or are lia le for the o ense "har'ed.

&s to the se"ond issue, %e nd for the res#ondent@s. 2 C had #ro$idedsuJ"ient e$iden"e su"h as #ro forma in$oi"e from R.R. =onnelleyA =e t&d$i"e of the an9 of Commer"eA J"ial Re"ei#ts from the ureau ofCustomsA and 4m#ort Entry =e"laration of the ureau of Customs to #ro$e



that indeed the 2i"rosoft soft%are in their #ossession %ere ou'ht fromSin'a#ore.

hus, res#ondent@s in this "ase has@ha$e no intent to defraud the #u li", as#ro$ided under &rti"le 18/ of the Re$ised enal Code, for they ou'ht said

2i"rosoft 2S = S 6.+ from an alle'ed li"ensee of 2i"rosoft in Sin'a#ore, %ithall the ne"essary #a#ers. 4n their o#inion, %hat they ha$e are 'enuine2i"rosoft soft%are, therefore no unfair "om#etition e>ist.

2oreo$er, $iolation of .=. */ does not e>ist, for res#ondent@s %as@%ere notthe manufa"turers of the 2i"rosoft soft%are sei-ed and %ere sellin' their#rodu"ts as 'enuine 2i"rosoft soft%are, "onsiderin' that they ou'ht it froma 2i"rosoft li"ensee.

Com#lainant, on the other hand, "onsiderin' that it has the urden of#ro$in' that the res#ondent@s is@are lia le for the o ense "har'ed, has not

#resented any e$iden"e that the items sei-ed namely the L/ o>es of 2S= S 6.+ soft%are are "ounterfeit.

he "erti "ation issued on =e"em er 1 , 1//L y Christo#her &ustin,Cor#orate &ttorney of the "om#lainant, does not dis"lose this fa"t. or theterm used y 2r. &ustin %as that the items sei-ed %ere unauthori-ed.

he Buestion no%, is %hether the #rodu"ts %ere unauthori-ed e"ause 2 Chas no li"ense to sell 2i"rosoft #rodu"ts, or is it unauthori-ed e"ause R.R.=onnelley has no authority to sell said #rodu"ts here in the hili##ines.

Still, to determine the "ul#a ility of the res#ondents, "om#lainant should#resent e$iden"e that %hat is in the #ossession of the res#ondent@s is@are"ounterfeit 2i"rosoft #rodu"ts.

his it failed to do. ; 3<

2i"rosoft sou'ht re"onsideration and #rayed for an o"ular ins#e"tion of the arti"les sei-ed from res#ondents. ?o%e$er, in the Resolution of 3=e"em er 1///, &ssistant Chief State rose"utor uenafe, u#on State

rose"utor n's re"ommendation, denied 2i"rosofts motion. ; *<

2i"rosoft a##ealed to the J"e of the = Se"retary. 4n the Resolution of 3 &u'ust +++, = Knderse"retary Re'is D. uno dismissed 2i"rosoftsa##eal. ; L< 2i"rosoft sou'ht re"onsideration ut its motion %as denied in theResolution of =e"em er +++. ; 6<

?en"e, this #etition. 2i"rosoft "ontends that:











Knli9e the hi'her Buantum of #roof eyond reasona le dou t reBuired tose"ure a "on$i"tion, it is the lo%er standard of #ro a le "ause %hi"h isa##lied durin' the #reliminary in$esti'ation to determine %hether thea""used should e held for trial. his standard is met if the fa"ts and"ir"umstan"es in"ite a reasona le elief that the a"t or omission "om#lained

of "onstitutes the o ense "har'ed. &s %e e>#lained in #i$api$ v.Sandigan"a'an :;38<

he term ;#ro a le "ause< does not mean a"tual and #ositi$e "ause nor doesit im#ort a solute "ertainty. 4t is merely ased on o#inion and reasona le

elief. hus, a ndin' of #ro a le "ause does not reBuire an inBuiry into%hether there is suJ"ient e$iden"e to #ro"ure a "on$i"tion. 4t is enou'h thatit is elie$ed that the a"t or omission "om#lained of "onstitutes the o ense"har'ed. re"isely, there is a trial for the re"e#tion of e$iden"e of the#rose"ution in su##ort of the "har'e.

#D *+ and Artic$e + /

Se"tion L ;3/< of = */ (Se"tion L) enumerates the ri'hts $ested e>"lusi$elyon the "o#yri'ht o%ner. Contrary to the = s rulin', the 'ra$amen of "o#yri'ht infrin'ement is not merely the unauthori-ed manufa"turin' of intelle"tual %or9s ut rather the unauthori-ed #erforman"e of any of the a"ts"o$ered y Se"tion L. ?en"e, any #erson %ho #erforms any of the a"ts underSe"tion L %ithout o tainin' the "o#yri'ht o%ners #rior "onsent rendershimself "i$illy ;*+< and "riminally ;*1< lia le for "o#yri'ht infrin'ement. Fe heldin %o$um"ia #ictures, (nc. v. %ourt of Appea$s :;* <

4nfrin'ement of a "o#yri'ht is a tres#ass on a #ri$ate domain o%ned ando""u#ied y the o%ner of the "o#yri'ht, and, therefore, #rote"ted y la%,and infrin'ement of "o#yri'ht, or #ira"y, %hi"h is a synonymous term in this"onne"tion, "onsists in the doin' y any #erson, %ithout the "onsent of theo%ner of the "o#yri'ht, of anythin' the sole ri'ht to do %hi"h is "onferred ystatute on the o%ner of the "o#yri'ht. (Em#hasis su##lied)

Si'ni "antly, under Se"tion L(&), a "o#yri'ht o%ner is $ested %ith thee>"lusi$e ri'ht to "o#y, distri ute, multi#ly, ;and< sell his intelle"tual %or9s.

n the other hand, the elements of unfair "om#etition under &rti"le18/(1) ;*3< of the Re$ised enal Code are:

(a) hat the o ender 'i$es his 'oods the 'eneral a##earan"e of the'oods of another manufa"turer or dealerA

( ) hat the 'eneral a##earan"e is sho%n in the (1) 'oodsthemsel$es, or in the ( ) %ra##in' of their #a"9a'es, or in the (3)de$i"e or %ords therein, or in (*) any other feature of theira##earan"e;A<















(") hat the o ender o ers to sell or sells those 'oods or 'i$es other#ersons a "han"e or o##ortunity to do the same %ith a li9e#ur#ose;A and<

(d) hat there is a"tual intent to de"ei$e the #u li" or defraud a"om#etitor. ;**<

he element of intent to de"ei$e may e inferred from the similarity of the 'oods or their a##earan"e. ;*L<

On the Su0cienc' of Evidence toSupport a Finding of #ro"a"$e %ause

Against &espondents

4n its #leadin's led %ith the = , 2i"rosoft in$o9ed three "lusters of e$iden"e to su##ort its "om#laint a'ainst res#ondents, namely: (1) the 1C= R 2s "ontainin' 2i"rosoft soft%are Sa"ri- and Samiano ou'ht from

res#ondentsA ( ) the C K %ith #re installed 2i"rosoft soft%are Sa"ri- andSamiano also #ur"hased from res#ondentsA and (3) the ,831 C= R 2s"ontainin' 2i"rosoft soft%are sei-ed from res#ondents. ;*6< he = , on theone hand, refused to #ass u#on the rele$an"e of these #ie"es of e$iden"e

e"ause: (1) the o li'ations et%een the #arties is "i$il and not "riminal"onsiderin' that 2i"rosoft merely sou'ht the issuan"e of Sear"h FarrantNos. /L 68* and /L 68L to #ressure eltron to #ay its o li'ation under the&'reement, and ( ) the $alidity of 2i"rosofts termination of the &'reementmust rst e resol$ed y the #ro#er "ourt. n the other hand, the = ruledthat 2i"rosoft failed to #resent e$iden"e #ro$in' that %hat %ere o tainedfrom res#ondents %ere "ounterfeit 2i"rosoft #rodu"ts.

his is 'ra$e a use of dis"retion. ;*7<

$irst . ein' the "o#yri'ht and trademar9 o%ner of 2i"rosoft soft%are,2i"rosoft a"ted %ell %ithin its ri'hts in lin' the "om#laint under 4.S. No. /61/3 ased on the in"riminatin' e$iden"e o tained from res#ondents. ?en"e,it %as hi'hly irre'ular for the = to hold, ased on the R C rder of 1/ uly1//6, that 2i"rosoft sou'ht the issuan"e of Sear"h Farrant Nos. /L 68* and/L 68L, and y inferen"e, the lin' of the "om#laint under 4.S. No. /6 1/3,merely to #ressure eltron to #ay its o$erdue royalties to 2i"rosoft.Si'ni "antly, in its =e"ision in C& G.R. CD No. L*6++ dated / No$em er

++1, the Court of &##eals set aside the R C rder of 1/ uly 1//6.

Res#ondents no lon'er "ontested that rulin' %hi"h e"ame nal on 7=e"em er ++1.

Second . here is no asis for the = to rule that 2i"rosoft must a%ait a#rior resolution from the #ro#er "ourt of (si") %hether or not the ;&'reement<is still indin' et%een the #arties. eltron has not led any suit to Buestion2i"rosofts termination of the &'reement. 2i"rosoft "an neither e e>#e"tednor "om#elled to %ait until eltron de"ides to sue efore 2i"rosoft "an see9remedies for $iolation of its intelle"tual #ro#erty ri'hts.











urthermore, some of the "ounterfeit C= R 2s ou'ht from res#ondents%ere installer C= R 2s "ontainin' 2i"rosoft soft%are only or oth 2i"rosoftand non 2i"rosoft soft%are. hese arti"les are "ounterfeit per se e"ause2i"rosoft does not (and "ould not ha$e authori-ed anyone to) #rodu"e su"hC= R 2s. he "o#yin' of the 'enuine 2i"rosoft soft%are to #rodu"e these

fa9e C= R 2s and their distri ution are ille'al e$en if the "o#ier ordistri utor is a 2i"rosoft li"ensee. &s far as these installer C= R 2s are"on"erned, the &'reement (and the alle'ed Buestion on the $alidity of itstermination) is immaterial to the determination of res#ondents lia ility for"o#yri'ht infrin'ement and unfair "om#etition.

astly, Se"tion 1+( ) ;*8< of the &'reement #ro$ides that 2i"rosofts ri'htsand remedies under the "ontra"t are not >>> e>"lusi$e and are in addition toany other ri'hts and remedies #ro$ided y la% or ;the< &'reement. hus,e$en if the &'reement still su sists, 2i"rosoft is not #re"luded from see9in'remedies under = */ and &rti"le 18/(1) of the Re$ised enal Code to$indi"ate its ri'hts.

hird . he Court nds that the 1 C= R 2s (installer and non installer)and the C K %ith #re installed 2i"rosoft soft%are Sa"ri- and Samiano ou'htfrom res#ondents and the ,831 2i"rosoft C= R 2s sei-ed from res#ondentssuJ"e to su##ort a ndin' of #ro a le "ause to indi"t res#ondents for"o#yri'ht infrin'ement under Se"tion L(&) in relation to Se"tion / of = */for unauthori-ed "o#yin' and sellin' of #rote"ted intelle"tual %or9s. heinstaller C= R 2s %ith 2i"rosoft soft%are, to re#eat, are "ounterfeit per se .

n the other hand, the ille'ality of the non installer C= R 2s #ur"hasedfrom res#ondents and of the 2i"rosoft soft%are #re installed in the C K issho%n y the a sen"e of the standard features a""om#anyin' authenti"

2i"rosoft #rodu"ts, namely, the 2i"rosoft end user li"ense a'reements, usersmanuals, re'istration "ards or "erti "ates of authenti"ity.

n the ,831 2i"rosoft C= R 2s ;*/< sei-ed from res#ondents, res#ondenteltron, the only res#ondent %ho %as #arty to the &'reement, "ould not

ha$e re#rodu"ed them under the &'reement as the Soli"itor General ;L+< andres#ondents "ontend. eltrons ri'hts ;L1< under the &'reement %ere limited to:

(1) the re#rodu";tion< and install;ation of< no more than o%" co of ;2i"rosoft< soft%are on ea"h Customer System hard dis9 or Read nly2emory (R 2)A and

( ) the distri ut;ion< >>> and li"ens;in' of< "o#ies of the ;2i"rosoft<rodu"t [a$ r" ro&/c"& a)o<"] a%& or ac /#r"& ro( A/'hor#E"&R" 4#ca'or or A/'hor#E"& D#$'r#)/'or; #% o)F"c' co&" or( 'o "%&/$"r$ .

he &'reement de nes an authori-ed re#li"ator as a third #arty a##ro$edy ;2i"rosoft< %hi"h may re#rodu"e and manufa"ture ;2i"rosoft< rodu"t;s<

for ; eltron< >>>. ;L < &n authori-ed distri utor, on the other hand, is a third#arty a##ro$ed y ;2i"rosoft< from %hi"h ; eltron< may #ur"hase













2E= ;L3< rodu"t. ;L*< ein' a mere re#rodu"er@installer of one 2i"rosoftsoft%are "o#y on ea"h "ustomers hard dis9 or R 2, eltron "ould only ha$ea"Buired the hundreds of 2i"rosoft C= R 2s found in res#ondents#ossession from 2i"rosoft distri utors or re#li"ators.

?o%e$er, res#ondents ma9es no su"h "laim. Fhat res#ondents "ontendis that these C= R 2s %ere left to them for safe9ee#in'. ut neither is this"laim tena le for la"9 of su stantiation. 4ndeed, res#ondents Peh and Chua,the only res#ondents %ho led "ounter aJda$its, did not ma9e this "laim inthe = . hese "ir"umstan"es 'i$e rise to the reasona le inferen"e thatres#ondents mass #rodu"ed the C= R 2s in Buestion %ithout se"urin'2i"rosofts #rior authori-ation.

he "ounterfeit non installer C= R 2s Sa"ri- and Samiano ou'ht fromres#ondents also suJ"e to su##ort a ndin' of #ro a le "ause to indi"tres#ondents for unfair "om#etition under &rti"le 18/(1) of the Re$ised enalCode for #assin' o 2i"rosoft #rodu"ts. rom the #i"tures of the C= R 2s

#a"9a'in',;LL<

one "annot distin'uish them from the #a"9a'in' of C= R 2s"ontainin' 'enuine 2i"rosoft soft%are. Su"h re#li"ation, "ou#led %ith thesimilarity of "ontent of these fa9e C= R 2s and the C= R 2s %ith 'enuine2i"rosoft soft%are, im#lies intent to de"ei$e.

Res#ondents "ontention that the 1 C= R 2s Sa"ri- and Samiano#ur"hased "annot e tra"ed to them e"ause the re"ei#t for these arti"lesdoes not indi"ate its sour"e is una$ailin'. he re"ei#t in Buestion should eta9en to'ether %ith 2i"rosofts "laim that Sa"ri- and Samiano ou'ht the C=R 2s from res#ondents. ;L6< o'ether, these "onsiderations #oint tores#ondents as the $endor of the "ounterfeit C= R 2s. Res#ondents do not'i$e any reason %hy the Court should not 'i$e "reden"e to 2i"rosofts "laim.

or the same reason, the fa"t that the re"ei#t for the C K does not indi"ate;s<oft%are hard dis9 does not mean that the C K had no #re installed2i"rosoft soft%are. Res#ondents Peh and Chua admit in their "ounteraJda$it that res#ondents are the sour"e of the #re installed 2S = Ssoft%are.

H R 8!R , %e GR&N the #etition. Fe SE &S4=E the Resolutionsdated 6 "to er 1///, 3 =e"em er 1///, 3 &u'ust +++, and =e"em er

+++ of the =e#artment of usti"e.

S! !RD R D.

6avide, Jr., C.J., (Chair-an), Euisu-1in:, ?naresDSantia:o, and ">cuna, JJ., "on"ur

[G.R. No. 10 -*6. a%/ar 2 , 1---]











8RANCISC! G. !A UIN, R., a%& B R!DUCTI!NS, INC., petitioners,vs. 8RAN 9IN DRI9!N GABRI 9 ?!SA, I99IAM S !S!, 8 9IM DINA, R., a%& CAS Y 8RANCISC!, respondents .

D C I S I ! N

M ND!?A, J .>

his is a #etition for certiorari . etitioners see9 to annul the resolution ofthe =e#artment of usti"e, dated &u'ust 1 , 1// , in Criminal Case No. Q /

78L*, entitled Ga riel Mosa, et al. $. City rose"utor of Que-on City andran"is"o oaBuin, r., and its resolution, dated =e"em er 3, 1// , denyin'

#etitioner oaBuins motion for re"onsideration.

etitioner rodu"tions, 4n". ( 4) is the holder@'rantee of Certi "ate of Co#yri'ht No. 2/ , dated anuary 8, 1/71, of Rhoda and Me , a datin''ame sho% aired from 1/7+ to 1/77.

n une 8, 1/73, #etitioner 4 su mitted to the National i rary anaddendum to its "erti "ate of "o#yri'ht s#e"ifyin' the sho%s format andstyle of #resentation.

n uly 1*, 1//1, %hile %at"hin' tele$ision, #etitioner ran"is"o oaBuin, r., #resident of 4, sa% on R N Channel / an e#isode of Its a 6ate , %hi"h%as #rodu"ed y 4 rodu"tions, 4n". (4 ). n uly 18, 1//1, he %rote aletter to #ri$ate res#ondent Ga riel 2. Mosa, #resident and 'eneral mana'erof 4 , informin' Mosa that 4 had a "o#yri'ht to Rhoda and Me anddemandin' that 4 dis"ontinue airin' Its a 6ate .

4n a letter, dated uly 1/, 1//1, #ri$ate res#ondent Mosa a#olo'i-ed to#etitioner oaBuin and reBuested a meetin' to dis"uss a #ossi lesettlement. 4 , ho%e$er, "ontinued airin' Its a 6ate , #rom#tin' #etitioner

oaBuin to send a se"ond letter on uly L, 1//1 in %hi"h he reiterated hisdemand and %arned that, if 4 did not "om#ly, he %ould endorse the matterto his attorneys for #ro#er le'al a"tion.

2ean%hile, #ri$ate res#ondent Mosa sou'ht to re'ister 4 s "o#yri'ht tothe rst e#isode of Its a 6ate for %hi"h it %as issued y the National i rarya "erti "ate of "o#yri'ht on &u'ust 1*, 1//1.

K#on "om#laint of #etitioners, an information for $iolation of .=. No. */

%as led a'ainst #ri$ate res#ondent Mosa to'ether %ith "ertain oJ"ers of R N Channel /, namely, Filliam Es#oso, eli#e 2edina, and Casey ran"is"o,in the Re'ional rial Court of Que-on City %here it %as do"9eted as CriminalCase No. / 78L* and assi'ned to ran"h 1+* thereof. ?o%e$er, #ri$ateres#ondent Mosa sou'ht a re$ie% of the resolution of the &ssistant City

rose"utor efore the =e#artment of usti"e.



n &u'ust 1 , 1// , res#ondent Se"retary of usti"e ran9lin 2. =rilonre$ersed the &ssistant City rose"utors ndin's and dire"ted him to mo$e forthe dismissal of the "ase a'ainst #ri$ate res#ondents. ;1<

etitioner oaBuin led a motion for re"onsideration, ut his motion %asdenied y res#ondent Se"retary of usti"e on =e"em er 3, 1// . ?en"e, this#etition. etitioners "ontend that:

1. he #u li" res#ondent 'ra$ely a used his dis"retion amountin' tola"9 of !urisdi"tion %hen he in$o9ed non #resentation of the masterta#e as ein' fatal to the e>isten"e of #ro a le "ause to #ro$einfrin'ement, des#ite the fa"t that #ri$ate res#ondents ne$erraised the same as a "ontro$erted issue.

. he #u li" res#ondent 'ra$ely a used his dis"retion amountin' tola"9 of !urisdi"tion %hen he arro'ated unto himself thedetermination of %hat is "o#yri'hta le an issue %hi"h ise>"lusi$ely %ithin the !urisdi"tion of the re'ional trial "ourt toassess in a #ro#er #ro"eedin'.

oth #u li" and #ri$ate res#ondents maintain that #etitioners failed toesta lish the e>isten"e of #ro a le "ause due to their failure to #resent the"o#yri'hted master $ideota#e of Rhoda and Me . hey "ontend that #etitioner

4s "o#yri'ht "o$ers only a s#e"i " e#isode of Rhoda and Me and that theformats or "on"e#ts of datin' 'ame sho%s are not "o$ered y "o#yri'ht#rote"tion under . =. No. */.

No%+A$$# %("%' o rror

etitioners "laim that their failure to su mit the "o#yri'hted master$ideota#e of the tele$ision sho% Rhoda and Me %as not raised in issue y#ri$ate res#ondents durin' the #reliminary in$esti'ation and, therefore, it%as error for the Se"retary of usti"e to re$erse the in$esti'atin' #rose"utors

ndin' of #ro a le "ause on this 'round.

& #reliminary in$esti'ation falls under the authority of the state#rose"utor %ho is 'i$en y la% the #o%er to dire"t and "ontrol "riminala"tions. ; < ?e is, ho%e$er, su !e"t to the "ontrol of the Se"retary of

usti"e. hus, Rule 11 , * of the Re$ised Rules of Criminal ro"edure,#ro$ides:

SEC. *. 6uty o# investi:atin: ;scal. 4f the in$esti'atin' s"al nds"ause to hold the res#ondent for trial, he shall #re#are the resolutionand "orres#ondin' information. ?e shall "ertify under oath that he, oras sho%n y the re"ord, an authori-ed oJ"er, has #ersonally e>aminedthe "om#lainant and his %itnesses, that there is reasona le 'round to

elie$e that a "rime has een "ommitted and that the a""used is

http://sc.judiciary.gov.ph/jurisprudence/1999/jan99/108946.htm#_edn1






#ro a ly 'uilty thereof, that the a""used %as informed of the"om#laint and of the e$iden"e su mitted a'ainst him and that he %as'i$en an o##ortunity to su mit "ontro$ertin' e$iden"e. ther%ise, heshall re"ommend dismissal of the "om#laint.

4n either "ase, he shall for%ard the re"ords of the "ase to the#ro$in"ial or "ity s"al or "hief state #rose"utor %ithin $e (L) daysfrom his resolution. he latter shall ta9e a##ro#riate a"tion thereon%ithin ten (1+) days from re"ei#t thereof, immediately informin' the#arties of said a"tion.

No "om#laint or information may e led or dismissed y anin$esti'atin' s"al %ithout the #rior %ritten authority or a##ro$al ofthe #ro$in"ial or "ity s"al or "hief state #rose"utor.

Fhere the in$esti'atin' assistant s"al re"ommends the dismissal

of the "ase ut his ndin's are re$ersed y the #ro$in"ial or "ity s"alor "hief state #rose"utor on the 'round that a #ro a le "ause e>ists,the latter may, y himself, le the "orres#ondin' information a'ainstthe res#ondent or dire"t any other assistant s"al or state #rose"utorto do so, %ithout "ondu"tin' another #reliminary in$esti'ation.

4f u#on #etition y a #ro#er #arty, the Se"retary of usti"e re$ersesthe resolution of the #ro$in"ial or "ity s"al or "hief state #rose"utor,he shall dire"t the s"al "on"erned to le the "orres#ondin'information %ithout "ondu"tin' another #reliminary in$esti'ation or todismiss or mo$e for dismissal of the "om#laint or information.

4n re$ie%in' resolutions of #rose"utors, the Se"retary of usti"e is not#re"luded from "onsiderin' errors, althou'h unassi'ned, for the #ur#ose of determinin' %hether there is #ro a le "ause for lin' "ases in "ourt. ?emust ma9e his o%n ndin' of #ro a le "ause and is not "on ned to theissues raised y the #arties durin' #reliminary in$esti'ation. 2oreo$er, his

ndin's are not su !e"t to re$ie% unless sho%n to ha$e een made %ith'ra$e a use.

! #%#o% o 'h" S"cr"'ar o /$'#c"

etitioners "ontend, ho%e$er, that the determination of the Buestion%hether the format or me"hani"s of a sho% is entitled to "o#yri'ht #rote"tionis for the "ourt, and not the Se"retary of usti"e, to ma9e. hey assail thefollo%in' #ortion of the resolution of the res#ondent Se"retary of usti"e:



; <he essen"e of "o#yri'ht infrin'ement is the "o#yin', in %hole or in#art, of "o#yri'hta le materials as de ned and enumerated in Se"tion of =. No. */. &#art from the manner in %hi"h it is a"tually e>#ressed,ho%e$er, the idea of a datin' 'ame sho% is, in the o#inion of this J"e,a non "o#yri'hta le material. 4deas, "on"e#ts, formats, or s"hemes in

their a stra"t form "learly do not fall %ithin the "lass of %or9s ormaterials sus"e#ti le of "o#yri'ht re'istration as #ro$ided in =. No. */.;3< (Em#hasis added.)

4t is indeed true that the Buestion %hether the format or me"hani"s of #etitioners tele$ision sho% is entitled to "o#yri'ht #rote"tion is a le'alBuestion for the "ourt to ma9e. his does not, ho%e$er, #re"lude res#ondentSe"retary of usti"e from ma9in' a #reliminary determination of this Buestionin resol$in' %hether there is #ro a le "ause for lin' the "ase in "ourt. 4ndoin' so in this "ase, he did not "ommit any 'ra$e error.

r"$"%'a'#o% o Ma$'"r Ta "

etitioners "laim that res#ondent Se"retary of usti"e 'ra$ely a used hisdis"retion in rulin' that the master $ideota#e should ha$e een #resented inorder to determine %hether there %as #ro a le "ause for "o#yri'htinfrin'ement. hey "ontend that 8 th Century $o9$il- Corporation v. Court o#

"ppeals , ;*< on %hi"h res#ondent Se"retary of usti"e relied in re$ersin' theresolution of the in$esti'atin' #rose"utor, is ina##li"a le to the "ase at ar

e"ause in the #resent "ase, the #arties #resented suJ"ient e$iden"e %hi"h"learly esta lish lin9a'es et%een the "o#yri'hted sho% Rhoda and Me andthe infrin'in' D sho% Its a 6ate . ;L<

he "ase of + th Century $o9 $il- Corporation in$ol$ed raids "ondu"tedon $arious $ideota#e outlets alle'edly sellin' or rentin' out #irated$ideota#es. he trial "ourt found that the aJda$its of N 4 a'ents, 'i$en insu##ort of the a##li"ation for the sear"h %arrant, %ere insuJ"ient %ithoutthe master ta#e. &""ordin'ly, the trial "ourt lifted the sear"h %arrants it had#re$iously issued a'ainst the defendants. n #etition for re$ie%, this Courtsustained the a"tion of the trial "ourt and ruled: ;6<

he #resentation of the master ta#es of the "o#yri'hted lms from %hi"h the#irated lms %ere alle'edly "o#ied, %as ne"essary for the $alidity of sear"h%arrants a'ainst those %ho ha$e in their #ossession the #irated lms. he#etitioners ar'ument to the e e"t that the #resentation of the master ta#esat the time of a##li"ation may not e ne"essary as these %ould e merelye$identiary in nature and not determinati$e of %hether or not a #ro a le"ause e>ists to !ustify the issuan"e of the sear"h %arrants is notmeritorious. he "ourt "annot #resume that du#li"ate or "o#ied ta#es %erene"essarily re#rodu"ed from master ta#es that it o%ns.











he a##li"ation for sear"h %arrants %as dire"ted a'ainst $ideo ta#e outlets%hi"h alle'edly %ere en'a'ed in the unauthori-ed sale and rentin' out of"o#yri'hted lms elon'in' to the #etitioner #ursuant to .=. */.

he essen"e of a "o#yri'ht infrin'ement is the similarity or at least

su stantial similarity of the #ur#orted #irated %or9s to the "o#yri'hted%or9. ?en"e, the a##li"ant must #resent to the "ourt the "o#yri'hted lms to"om#are them %ith the #ur"hased e$iden"e of the $ideo ta#es alle'edly#irated to determine %hether the latter is an unauthori-ed re#rodu"tion ofthe former. his lin9a'e of the "o#yri'hted lms to the #irated lms must eesta lished to satisfy the reBuirements of #ro a le "ause. 2ere alle'ationsas to the e>isten"e of the "o#yri'hted lms "annot ser$e as asis for theissuan"e of a sear"h %arrant.

his rulin' %as Buali ed in the later "ase of Colu-1ia Pictures, Inc. v. Court o# "ppeals ;7< in %hi"h it %as held:

4n ne, the su##osed pronuncia-ento in said "ase re'ardin' the ne"essityfor the #resentation of the master ta#es of the "o#yri'hted lms for the$alidity of sear"h %arrants should at most e understood to merely ser$e asa 'uide#ost in determinin' the e>isten"e of #ro a le "ause in "o#yri'htinfrin'ement "ases &here there is dou1t as to the true ne9us 1et&een the-aster tape and the pirated copies. &n o !e"ti$e and "areful readin' of thede"ision in said "ase "ould lead to no other "on"lusion than that saiddire"ti$e %as hardly intended to e a s%ee#in' and inHe>i le reBuirement inall or similar "o#yri'ht infrin'ement "ases. . . . ;8<

4n the "ase at ar, durin' the #reliminary in$esti'ation, #etitioners and#ri$ate res#ondents #resented %ritten des"ri#tions of the formats of theirres#e"ti$e tele$isions sho%s, on the asis of %hi"h the in$esti'atin'#rose"utor ruled:

&s may ; e< 'leaned from the e$iden"e on re"ord, the su stan"e of thetele$ision #rodu"tions "om#lainants R? =& &N= 2E and Mosas 4 S & =& E isthat t%o mat"hes are made et%een a male and a female, oth sin'le, andthe t%o "ou#les are treated to a ni'ht or t%o of dinin' and@or dan"in' at thee>#ense of the sho%. he ma!or "on"e#ts of oth sho%s is the same. &nydi eren"e a##ear mere $ariations of the ma!or "on"e#ts.

hat there is an infrin'ement on the "o#yri'ht of the sho% R? =& &N= 2Eoth in "ontent and in the e>e"ution of the $ideo #resentation are

esta lished e"ause res#ondents 4 S & =& E is #ra"ti"ally an e>a"t "o#y of"om#lainants R? =& &N= 2E e"ause of su stantial similarities as follo%s,to %it:

R? =& &N= 2E 4 S & =& E







Set 4 Set 4

a. Knmarried #arti"i#ant a. same

of one 'ender (sear"her) a##ears on one side of a di$ider, %hile three (3)

unmarried #arti"i#ants of the other 'ender are on the other side ofthe di$ider. his arran'ement is done to ensure that the sear"herdoes not see the sear"hees.

. Sear"her as9s a Buestion . same

to e ans%ered y ea"h of thesear"hees. he #ur#ose isto determine %hoamon'the sear"hees is themost "om#ati le %ith thesear"her.

". Sear"her s#e"ulates on the ". same

mat"h to the sear"hee.

d. Sele"tion is made y the d. Sele"tion is

use of "om#ute (si") methods, ased on theor y the %ay Buestions are ans%er of theans%ered, or similar methods. Sear"hees.

Set Set

Same as a o$e %ith the 'enders same

of the sear"her andsear"hees inter"han'ed.;/<

etitioners assert that the format of Rhoda and Me is a #rodu"t of in'enuity and s9ill and is thus entitled to "o#yri'ht #rote"tion. 4t is their#osition that the #resentation of a #oint y #oint "om#arison of the formatsof the t%o sho%s "learly demonstrates the ne>us et%een the sho%s andhen"e esta lishes the e>isten"e of #ro a le "ause for "o#yri'htinfrin'ement. Su"h ein' the "ase, they did not ha$e to #rodu"e the masterta#e.

o e'in %ith, the format of a sho% is not "o#yri'hta le. Se"tion of .=.No. */, ;1+< other%ise 9no%n as the =ECREE N 4N E EC K& R ER I,enumerates the "lasses of %or9 entitled to "o#yri'ht #rote"tion, to %it:







Se"tion . he ri'hts 'ranted y this =e"ree shall, from the moment of"reation, su sist %ith res#e"t to any of the follo%in' "lasses of %or9s:

(&) oo9s, in"ludin' "om#osite and "y"lo#edi" %or9s, manus"ri#ts,dire"tories, and 'a-etteersA

( ) eriodi"als, in"ludin' #am#hlets and ne%s#a#ersA

(C) e"tures, sermons, addresses, dissertations #re#ared for oral deli$eryA

(=) ettersA

(E) =ramati" or dramati"o musi"al "om#ositionsA "horeo'ra#hi" %or9s andentertainments in dum sho%s, the a"tin' form of %hi"h is >ed in %ritin' orother%iseA

( ) 2usi"al "om#ositions, %ith or %ithout %ordsA(G) For9s of dra%in', #aintin', ar"hite"ture, s"ul#ture, en'ra$in',litho'ra#hy, and other %or9s of artA models or desi'ns for %or9s of artA

(?) Re#rodu"tions of a %or9 of artA

(4) ri'inal ornamental desi'ns or models for arti"les of manufa"ture,%hether or not #atenta le, and other %or9s of a##lied artA

( ) 2a#s, #lans, s9et"hes, and "hartsA

(P) =ra%in's or #lasti" %or9s of a s"ienti " or te"hni"al "hara"terA

( ) hoto'ra#hi" %or9s and %or9s #rodu"ed y a #ro"ess analo'ous to#hoto'ra#hyA lantern slidesA

(2) Cinemato'ra#hi" %or9s and %or9s #rodu"ed y a #ro"ess analo'ous to"inemato'ra#hy or any #ro"ess for ma9in' audio $isual re"ordin'sA

(N) Com#uter #ro'ramsA

( ) rints, #i"torial illustrations ad$ertisin' "o#ies, la els, ta's, and o>%ra#sA

( ) =ramati-ations, translations, ada#tations, a rid'ements, arran'ementsand other alterations of literary, musi"al or artisti" %or9s or of %or9s of the

hili##ine 'o$ernment as herein de ned, %hi"h shall e #rote"ted as#ro$ided in Se"tion 8 of this =e"ree.



(Q) Colle"tions of literary, s"holarly, or artisti" %or9s or of %or9s referred toin Se"tion / of this =e"ree %hi"h y reason of the sele"tion and arran'ementof their "ontents "onstitute intelle"tual "reations, the same to e #rote"tedas su"h in a""ordan"e %ith Se"tion 8 of this =e"ree.

(R) ther literary, s"holarly, s"ienti " and artisti" %or9s. his #ro$ision is su stantially the same as 17 of the 4N E EC K&

R ER I C =E ?E ?4 4 4NES (R.&. No. 8 /3). ;11< he format orme"hani"s of a tele$ision sho% is not in"luded in the list of #rote"ted %or9sin of .=. No. */. or this reason, the #rote"tion a orded y the la% "annot

e e>tended to "o$er them.

Co#yri'ht, in the stri"t sense of the term, is #urely a statutory ri'ht. 4t is ane% or inde#endent ri'ht 'ranted y the statute, and not sim#ly a #ree>istin' ri'ht re'ulated y the statute. ein' a statutory 'rant, the ri'hts are

only su"h as the statute "onfers, and may e o tained and en!oyed only %ithres#e"t to the su !e"ts and y the #ersons, and on terms and "onditionss#e"i ed in the statute. ;1 <

Sin"e . . . "o#yri'ht in #u lished %or9s is #urely a statutory "reation, a"o#yri'ht may e o tained only for a %or9 fallin' %ithin the statutoryenumeration or des"ri#tion. ;13<

Re'ardless of the histori"al $ie%#oint, it is authoritati$ely settled in theKnited States that there is no "o#yri'ht e>"e#t that %hi"h is oth"reated andse"ured y a"t of Con'ress . . . . ;1*<

.=. No. */, , in enumeratin' %hat are su !e"t to "o#yri'ht, refers tonished %or9s and not to "on"e#ts. he "o#yri'ht does not e>tend to an

idea, #ro"edure, #ro"ess, system, method of o#eration, "on"e#t, #rin"i#le, ordis"o$ery, re'ardless of the form in %hi"h it is des"ri ed, e>#lained,illustrated, or em odied in su"h %or9. ;1L< hus, the ne% 4N E EC K&

R ER I C =E ?E ?4 4 4NES #ro$ides:

Se". 17L. /nprotected Su1=ect Matter . Not%ithstandin' the #ro$isions ofSe"tions 17 and 173, no #rote"tion shall e>tend, under this la%, to any idea,#ro"edure, system, method or o#eration, "on"e#t, #rin"i#le, dis"o$ery ormere data as su"h, e$en if they are e>#ressed, e>#lained, illustrated orem odied in a %or9A ne%s of the day and other mis"ellaneous fa"ts ha$in'the "hara"ter of mere items of #ress informationA or any oJ"ial te>t of ale'islati$e, administrati$e or le'al nature, as %ell as any oJ"ial translationthereof.

Fhat then is the su !e"t matter of #etitioners "o#yri'htW his Court is of the o#inion that #etitioner 4s "o#yri'ht "o$ers audio $isual re"ordin's of













ea"h e#isode of Rhoda and Me , as fallin' %ithin the "lass of %or9s mentionedin .=. */, (2), to %it:

Cinemato'ra#hi" %or9s and %or9s #rodu"ed y a #ro"ess analo'ous to"inemato'ra#hy or any #ro"ess for ma9in' audio $isual re"ordin'sA

he "o#yri'ht does not e>tend to the 'eneral "on"e#t or format of its datin''ame sho%. &""ordin'ly, y the $ery nature of the su !e"t of #etitioner 4s"o#yri'ht, the in$esti'atin' #rose"utor should ha$e the o##ortunity to"om#are the $ideota#es of the t%o sho%s.

2ere des"ri#tion y %ords of the 'eneral format of the t%o datin' 'amesho%s is insuJ"ientA the #resentation of the master $ideota#e in e$iden"e%as indis#ensa le to the determination of the e>isten"e of #ro a le"ause. &s a#tly o ser$ed y res#ondent Se"retary of usti"e:

& tele$ision sho% in"ludes more than mere %ords "an des"ri e e"ause itin$ol$es a %hole s#e"trum of $isuals and e e"ts, $ideo and audio, su"hthat no similarity or dissimilarity may e found y merely des"ri in' the'eneral "o#yri'ht@format of oth datin' 'ame sho%s. ;16<

H R 8!R , the #etition is here y =4S24SSE=.

S! !RD R D.Puno, Euisu-1in:, and Buena, JJ., "on"ur .Bellosillo, J., (Chair-an), no #art due to relation to one of the #arties.

ABS+CBN BR!ADCASTING G.R. Nos. 17L76/ 7+C!R !RATI!N,

etitioner, resent: Inares Santia'o, J. (Chair#erson),

$ersus &ustria 2artine-,Chi"o Na-ario,Na"hura, and

eonardo =e Castro, JJ.HI9I IN MU9TI+M DIA SYST M,

INC., C SAR G. R Y S, 8RANCISCHUA :ANG BIA!;, MANU 9 8.AB 99ADA, RAU9 B. D M SA, romul'ated:AND A9!YSIUS M. C!9AYC!,Res#ondents. anuary 1/, ++/ >


http://sc.judiciary.gov.ph/jurisprudence/2009/jan2009/175769-70.htm#_ftn1





DE%(S(O1

YNAR S+SANTIAG!, J .:

his #etition for re$ie% on "ertiorari;1<

assails the uly 1 , ++6 =e"ision; <

of the Court of &##eals in C& G.R. S Nos. 88+/ and /+76 , %hi"h aJrmed the=e"em er +, ++* =e"ision of the =ire"tor General of the 4ntelle"tual

ro#erty J"e (4 ) in &##eal No. 1+ ++* +++ . &lso assailed is the=e"em er 11, ++6 Resolution ;3< denyin' the motion for re"onsideration.

etitioner & S C N road"astin' Cor#oration (& S C N) is li"ensedunder the la%s of the Re#u li" of the hili##inesto en'a'e in tele$ision andradio road"astin'. ;*< 4t road"asts tele$ision #ro'rams y %ireless means to2etro 2anila and near y #ro$in"es, and y satellite to #ro$in"ial stationsthrou'h Channel on Dery ?i'h reBuen"y (D? ) and Channel 3 on Kltra?i'h reBuen"y (K? ). he #ro'rams aired o$er Channels and 3 are either

#rodu"ed y & S C N or #ur"hased from or li"ensed y other #rodu"ers.& S C N also o%ns re'ional tele$ision stations %hi"h #attern their#ro'rammin' in a""ordan"e %ith #er"ei$ed demands of the re'ion. hus,tele$ision #ro'rams sho%n in 2etro 2anila and near y #ro$in"es are notne"essarily sho%n in other #ro$in"es.

Res#ondent hili##ine 2ulti 2edia System, 4n". ( 2S4) is the o#erator

of =ream road"astin' System. 4t deli$ers di'ital dire"t to home (= ?)tele$ision via satellite to its su s"ri ers all o$er the hili##ines. ?ereinindi$idual res#ondents, Cesar G. Reyes, ran"is Chua, 2anuel . & ellada,Raul . =e 2esa, and &loysius 2. Colay"o, are mem ers of 2S4s oard of

=ire"tors. 2S4 %as 'ranted a le'islati$e fran"hise under Re#u li" &"t No.

863+ ;L< on 2ay 7, 1//8 and %as 'i$en a ro$isional &uthority y the National ele"ommuni"ations Commission (N C) on e ruary 1, +++ to install,o#erate and maintain a nation%ide = ? satellite ser$i"e. Fhen it"ommen"ed o#erations, it o ered as #art of its #ro'ram line u# & S C NChannels and 3, N N, Channel *, & C Channel L, G2& Channel 7, R NChannel /, and 4 C Channel 13, to'ether %ith other #aid #remium #ro'ram"hannels.

?o%e$er, on &#ril L, ++1, ;6< & S C N demanded for 2S4 to "ease

and desist from re road"astin' Channels and 3. n &#ril 7, ++1, ;7< 2S4re#lied that the re road"astin' %as in a""ordan"e %ith the authority 'rantedit y N C and its o li'ation under N C 2emorandum Cir"ular No. * +8 88,;8< Se"tion 6. of %hi"h reBuires all "a le tele$ision system o#eratorso#eratin' in a "ommunity %ithin Grade & or "ontours to "arry the tele$isionsi'nals of the authori-ed tele$ision road"ast stations. ;/<





















hereafter, ne'otiations ensued et%een the #arties in an e ort torea"h a settlementA ho%e$er, the ne'otiations %ere terminated on &#ril *,

++ y & S C N alle'edly due to 2S4s ina ility to ensure the #re$ention of ille'al retransmission and further re road"ast of its si'nals, as %ell as thead$erse e e"t of the re road"asts on the usiness o#erations of its re'ional

tele$ision stations.;1+<

n 2ay 13, ++ , & S C N led %ith the 4 a "om#laint for Diolation

of a%s 4n$ol$in' ro#erty Ri'hts, %ith rayer for the 4ssuan"e of a em#orary Restrainin' rder and@or Frit of reliminary 4n!un"tion, %hi"h %asdo"9eted as 4 D No. 1+ ++ +++*. 4t alle'ed that 2S4s unauthori-edre road"astin' of Channels and 3 infrin'ed on its road"astin' ri'hts and"o#yri'ht.

n uly , ++ , the ureau of e'al & airs ( &) of the 4 'ranted

& S C Ns a##li"ation for a tem#orary restrainin' order. n uly 1 , ++ ,

2S4 sus#ended its retransmission of Channels and 3 and li9e%ise led a#etition for certiorari %ith the Court of &##eals, %hi"h %as do"9eted as C&G.R. S No. 71L/7.

Su seBuently, 2S4 led %ith the & a 2anifestation reiteratin' that it

is su !e"t to the must "arry rule under 2emorandum Cir"ular No. +* +8 88. 4talso su mitted a letter dated =e"em er +, ++ of then N C Commissioner&rmi ane R. or!e to 2S4 statin' as follo%s:

his refers to your letter dated =e"em er 16, ++

reBuestin' for re'ulatory 'uidan"e from this Commission in

"onne"tion %ith the a##li"ation and "o$era'e of N C2emorandum Cir"ular No. * +8 88, #arti"ularly Se"tion 6 thereof,on mandatory "arria'e of tele$ision road"ast si'nals, to thedire"t to home (= ?) #ay tele$ision ser$i"es of hili##ine 2ulti2edia System, 4n". ( 2S4).

reliminarily, oth = ? #ay tele$ision and "a le tele$ision

ser$i"es are road"ast ser$i"es, the only di eren"e ein' themedium of deli$erin' su"h ser$i"es (i.e. the former y satelliteand the latter y "a le). oth "an "arry road"ast si'nals to theremote areas, thus enri"hin' the li$es of the residents thereof throu'h the dissemination of so"ial, e"onomi", edu"ationalinformation and "ultural #ro'rams.

he = ? #ay tele$ision ser$i"es of 2S4 is eBui##ed to

#ro$ide nation%ide = ? satellite ser$i"es. Con"ededly, 2S4s= ? #ay tele$ision ser$i"es "o$ers $ery mu"h %ider areas interms of "arria'e of road"ast si'nals, in"ludin' areas not





rea"ha le y "a le tele$ision ser$i"es there y #ro$idin' a ettermedium of dissemination of information to the #u li".

I% <#" o 'h" or" o#% a%& 'h" $ #r#' a%& #%'"%' o

NTC ("(ora%&/( C#rc/4ar No. *+0 + , ar'#c/4ar4

$"c'#o% 6 'h"r"o , o% (a%&a'or carr#a " o '"4"<#$#o%)roa&ca$' $# %a4$, DTH a '"4"<#$#o% $"r<#c"$ $ho/4& )"&""("& co<"r"& ) $/ch NTC M"(ora%&/( C#rc/4ar.

or your 'uidan"e. (Em#hasis added) ;11<

n &u'ust 6, ++3, 2S4 led another 2anifestation %ith the & that

it re"ei$ed a letter dated uly *, ++3 from the N C en!oinin' stri"t andimmediate "om#lian"e %ith the must "arry rule under 2emorandum Cir"ularNo. +* +8 88, to %it:

=ear 2r. & ellada: ast uly , ++3, the National ele"ommuni"ations Commission

(N C) re"ei$ed a letter dated uly 17, ++3 from resident@CRene Q. ello of the 4nternational road"astin' Cor#oration (4 CChannel 13) "om#lainin' that your "om#any, =ream

road"astin' System, 4n"., has "ut o , %ithout any noti"e ore>#lanation %hatsoe$er, to air the #ro'rams of 4 C 13, a free toair tele$ision, to the detriment of the #u li". Fe %ere told that, until no%, this has een 'oin' on.

4"a$" )" a&<#$"& 'ha' a$ a &#r"c' )roa&ca$' $a'"44#'"o "ra'or, o "ra'#% a &#r"c'+'o+ho(" :DTH; )roa&ca$'#%$ $'"(, #'h a ro<#$#o%a4 a/'hor#' : A; ro( 'h" NTC,

o/r co( a% , a4o% #'h ca)4" '"4"<#$#o% o "ra'or$, ar"(a%&a'"& 'o $'r#c'4 co( 4 #'h 'h" "=#$'#% o4#c o NTC o% (a%&a'or carr#a " o '"4"<#$#o% )roa&ca$'$# %a4$ a$ ro<#&"& /%&"r M"(ora%&/( C#rc/4ar No. 0*+0 + , a4$o %o % a$ 'h" R"<#$"& R/4"$ a%& R" /4a'#o%$Go<"r%#% Ca)4" T"4"<#$#o% S $'"( #% 'h" h#4# #%"$.

Th#$ (a%&a'or co<"ra " ro<#$#o% /%&"r S"c'#o% 6.2 o $a#& M"(ora%&/( C#rc/4ar, r" /#r"$ a44 ca)4" '"4"<#$#o%$ $'"( o "ra'or$, o "ra'#% #% a co((/%#' #'h#% 'h"Gra&" A or B co%'o/r$ 'o (/$'+carr 'h" '"4"<#$#o% $# %a4$o 'h" a/'hor#E"& '"4"<#$#o% )roa&ca$' $'a'#o%$, o%" o

h#ch #$ IBC+13. Sa#& &#r"c'#<" " /a44 a 4#"$ 'o o/rco( a% a$ 'h" c#rc/4ar a$ #$$/"& 'o #<" co%$/("r$





a%& 'h" /)4#c a #&"r acc"$$ 'o (or" $o/rc"$ o %" $,#% or(a'#o%, "%'"r'a#%("%' a%& o'h"r ro ra($ co%'"%'$.

his Commission, as the 'o$ernin' a'en"y $ested y la%s %iththe !urisdi"tion, su#er$ision and "ontrol o$er all #u li" ser$i"es,

%hi"h in"ludes dire"t road"ast satellite o#erators, and ta9in'into "onsideration the #aramount interest of the #u li" in'eneral, here y dire"ts you to immediately restore the si'nal of 4 C 13 in your net%or9 #ro'rams, #ursuant to e>istin' "ir"ularsand re'ulations of the Commission.

or stri"t "om#lian"e. (Em#hasis added) ;1 <

2ean%hile, on "to er 1+, ++3, the N C issued 2emorandum Cir"ular

No. 1+ 1+ ++3, entitled 4m#lementin' Rules and Re'ulations Go$ernin'Community &ntenna@Ca le ele$ision (C& D) and =ire"t road"ast Satellite

(= S) Ser$i"es to romote Com#etition in the Se"tor. &rti"le 6, Se"tion 8thereof states: &s a 'eneral rule, the re"e#tion, distri ution and@or

transmission y any C& D@= S o#erator of any tele$ision si'nals%ithout any a'reement %ith or authori-ation from#ro'ram@"ontent #ro$iders are #rohi ited.

n %hether 2emorandum Cir"ular No. 1+ 1+ ++3 amended2emorandum Cir"ular No. +* +8 88, the N C e>#lained to 2S4 in a letterdated No$em er 3, ++3 that:

o address your Buery on %hether or not the #ro$isions of 2C 1+1+ ++3 %ould ha$e the e e"t of amendin' the #ro$isions of 2C* +8 88 on mandatory "arria'e of tele$ision si'nals, the ans%eris in the ne'ati$e. > > > >

he Commission maintains that, 2C * +8 88 remains $alid,su sistin' and enfor"ea le.

lease e ad$ised, therefore, that a$ &/4 4#c"%$"& &#r"c'+'o+ho(" $a'"44#'" '"4"<#$#o% $"r<#c" ro<#&"r a/'hor#E"& )'h#$ Co((#$$#o%, o/r co( a% co%'#%/"$ 'o )" )o/%& )'h" /#&"4#%"$ ro<#&"& or /%&"r MC 0*+0 + ,$ "c#Jca44 o/r o)4# a'#o% /%&"r #'$ (a%&a'or carr#a "

ro<#$#o%$, #% a&&#'#o% 'o o/r o)4# a'#o%$ /%&"r MC 10+10+2003. (Em#hasis added)





lease e 'uided a""ordin'ly. ;13<

n =e"em er , ++3, the & rendered a de"ision ;1*< ndin' that

2S4 infrin'ed the road"astin' ri'hts and "o#yri'ht of & S C N andorderin' it to #ermanently "ease and desist from re road"astin' Channels

and 3. n e ruary 6, ++*, 2S4 led an a##eal %ith the J"e of the

=ire"tor General of the 4 %hi"h %as do"9eted as &##eal No. 1+ ++*+++ . n =e"em er 3, ++*, it also led %ith the Court of &##eals a 2otionto Fithdra% etitionA &lternati$ely, 2emorandum of the etition for Certiorariin C& G.R. S No. 71L/7, %hi"h %as 'ranted in a resolution dated e ruary17, ++L.

n =e"em er +, ++*, the =ire"tor General of the 4 rendered a

de"ision ;1L< in fa$or of 2S4, the dis#ositi$e #ortion of %hi"h states:

F?ERE RE, #remises "onsidered, the instant a##eal ishere y GR&N E=. &""ordin'ly, =e"ision No. ++3 +1 dated =e"em er ++3 of the =ire"tor of ureau of e'al & airs ishere y REDERSE= and SE &S4=E.

et a "o#y of this =e"ision e furnished the =ire"tor of the

ureau of e'al & airs for a##ro#riate a"tion, and the re"ords ereturned to her for #ro#er dis#osition. he =o"umentation,4nformation and e"hnolo'y ransfer ureau is also 'i$en a "o#yfor li rary and referen"e #ur#oses.

S R=ERE=. ;16<

hus, & S C N led a #etition for re$ie% %ith #rayer for issuan"e of a

tem#orary restrainin' order and %rit of #reliminary in!un"tion %ith the Courtof &##eals, %hi"h %as do"9eted as C& G.R. S No. 88+/ .

n uly 18, ++L, the Court of &##eals issued a tem#orary restrainin'

order. hereafter, & S C N led a #etition for "ontem#t a'ainst 2S4 for"ontinuin' to re road"ast Channels and 3 des#ite the restrainin'order. he "ase %as do"9eted as C& G.R. S No. /+76 .

n No$em er 1*, ++L, the Court of &##eals ordered the "onsolidation

of C& G.R. S Nos. 88+/ and /+76 . 4n the assailed =e"ision dated uly 1 , ++6, the Court of &##eals

sustained the ndin's of the =ire"tor General of the 4 and dismissed oth#etitions led y & S C N. ;17<













& S C Ns motion for re"onsideration %as denied, hen"e, this #etition. & S C N "ontends that 2S4s unauthori-ed re road"astin' of Channels

and 3 is an infrin'ement of its road"astin' ri'hts and "o#yri'ht underthe 4ntelle"tual ro#erty Code (4 Code)A ;18<that 2emorandum Cir"ular No. +*

+8 88 e>"ludes = ? satellite tele$ision o#eratorsA that the Court of &##ealsinter#retation of the must "arry rule $iolates Se"tion / of &rti"le 444 ;1/< of theConstitution e"ause it allo%s the ta9in' of #ro#erty for #u li" use %ithout#ayment of !ust "om#ensationA that the Court of &##eals erred in dismissin'the #etition for "ontem#t do"9eted as C& G.R. S No. /+76 %ithoutreBuirin' res#ondents to le "omment.

Res#ondents, on the other hand, ar'ue that 2S4s re road"astin' of

Channels and 3 is san"tioned y 2emorandum Cir"ular No. +* +8 88A thatthe must "arry rule under the 2emorandum Cir"ular is a $alid e>er"ise of #oli"e #o%erA and that the Court of &##eals "orre"tly dismissed C& G.R. S

No. /+76 sin"e it found no need to e>er"ise its #o%er of "ontem#t. &fter a "areful re$ie% of the fa"ts and re"ords of this "ase, %e aJrm

the ndin's of the =ire"tor General of the 4 and the Court of &##eals.

here is no merit in & S C Ns "ontention that 2S4 $iolated itsroad"asters ri'hts under Se"tion 11 of the 4 Code %hi"h #ro$ides in #art:

Cha#ter 4D

R &=C&S 4NG RG&N4M& 4 NS

Se". 11. S"o#e of Ri'ht. Su !e"t to the #ro$isions of Se"tion1 , road"astin' or'ani-ations shall en!oy the e>"lusi$e ri'ht to"arry out, authori-e or #re$ent any of the follo%in' a"ts:

11.1. he re road"astin' of their road"astsA > > > > Neither is 2S4 'uilty of infrin'ement of & S C Ns "o#yri'ht under

Se"tion 177 of the 4 Code %hi"h states that "o#yri'ht or e"onomi" ri'htsshall "onsist of the e>"lusi$e ri'ht to "arry out, authori-e or #re$ent the#u li" #erforman"e of the %or9 (Se"tion 177.6), and other "ommuni"ation tothe #u li" of the %or9 (Se"tion 177.7). ; +<

Se"tion + .7 of the 4 Code de nes )roa&ca$'#% as the

transmission y %ireless means for the #u li" re"e#tion of sounds or of ima'es or of re#resentations thereofA su"h transmission y satellite is also

road"astin' %here the means for de"ry#tin' are #ro$ided to the #u li" ythe road"astin' or'ani-ation or %ith its "onsent.









n the other hand, r")roa&ca$'#% as de ned in &rti"le 3(') of the

4nternational Con$ention for the rote"tion of erformers, rodu"ers of hono'rams and road"astin' r'ani-ations, other%ise 9no%n as the 1/61

Rome Con$ention, of %hi"h the Re#u li" of the hili##ines is a

si'natory, ; 1<

is the simultaneous road"astin' y one road"astin'or'ani-ation of the road"ast of another road"astin' or'ani-ation.

he =ire"tor General of the 4 "orre"tly found that 2S4 is noten'a'ed in re road"astin' and thus "annot e "onsidered to ha$e infrin'ed& S C Ns road"astin' ri'hts and "o#yri'ht, thus:

hat the &##ellants ;herein res#ondent 2S4< su s"ri ers

are a le to $ie% &##ellees ;herein #etitioner & S C N< #ro'rams(Channels and 3) at the same time that the latter is

road"astin' the same is undis#uted. he Buestion ho%e$er is,

%ould the &##ellant in doin' so e "onsidered en'a'ed inroad"astin'. Se"tion + .7 of the 4 Code states thatroad"astin' means

the transmission y %ireless means for the

#u li" re"e#tion of sounds or of ima'es or of re#resentations thereofA su"h transmission ysatellite is also road"astin' %here the means forde"ry#tin' are #ro$ided to the #u li" y the

road"astin' or'ani-ation or %ith its "onsent.

Se"tion + .7 of the 4 Code, thus, #ro$ides t%o instan"es%herein there is road"astin', to %it:

1. he transmission y %ireless means for the #u li"re"e#tion of sounds or of ima'es or of re#resentationsthereofA and

. he transmission y satellite for the #u li"

re"e#tion of sounds or of ima'es or of re#resentationsthereof %here the means for de"ry#tin' are #ro$ided to the#u li" y the road"astin' or'ani-ation or %ith its "onsent.

4t is under the se"ond "ate'ory that &##ellants = ?

satellite tele$ision ser$i"e must e e>amined sin"e it is satelliteased. he elements of su"h "ate'ory are as follo%s:

1. here is transmission of sounds or ima'es or of

re#resentations thereofA






. he transmission is throu'h satelliteA 3. he transmission is for #u li" re"e#tionA and *. he means for de"ry#tin' are #ro$ided to the #u li"

y the road"astin' or'ani-ation or %ith its "onsent. 4t is only the #resen"e of all the a o$e elements "an a

determination that the = ? is road"astin' and "onseBuently,re road"astin' &##ellees si'nals in $iolation of Se"tions 11 and177 of the 4 Code, may e arri$ed at.

&""ordin'ly, this J"e is of the $ie% that the transmission

"ontem#lated under Se"tion + .7 of the 4 Code #resu##osesthat the ori'in of the si'nals is the road"aster.?en"e, a #ro'ramthat is road"asted is attri uted to the road"aster. 4n the same

manner, the re road"asted #ro'ram is attri uted to there road"aster. 4n the "ase at hand, &##ellant is not the ori'in nor does it

"laim to e the ori'in of the #ro'rams road"asted y the&##ellee. &##ellant did not ma9e and transmit on its o%n utmerely "arried the e>istin' si'nals of the &##ellee. Fhen&##ellants su s"ri ers $ie% &##ellees #ro'rams in Channels and 3, they 9no% that the ori'in thereof %as the &##ellee.

&#tly, it is im#erati$e to dis"ern the nature of

road"astin'. Fhen a road"aster transmits, the si'nals ares"attered or dis#ersed in the air. &ny ody may #i"9 u# thesesi'nals. here is no restri"tion as to its num er, ty#e or "lass of re"i#ients. o re"ei$e the si'nals, one is not reBuired to su s"ri eor to #ay any fee. ne only has to ha$e a re"ei$er, and in "ase of tele$ision si'nals, a tele$ision set, and to tune in to the ri'ht"hannel@freBuen"y. he de nition of road"astin', %herein it isreBuired that the transmission is %ireless, all the more su##ortsthis dis"ussion. &##arently, the undis"riminatin' dis#ersal of si'nals in the air is #ossi le only throu'h %ireless means. heuse of %ire in transmittin' si'nals, su"h as "a le tele$ision, limitsthe re"i#ients to those %ho are "onne"ted. Knli9e %irelesstransmissions, in %ire ased transmissions, it is not enou'h thatone %ants to e "onne"ted and #ossesses the eBui#ment. heser$i"e #ro$ider, su"h as "a le tele$ision "om#anies may "hooseits su s"ri ers.

he only limitation to su"h dis#ersal of si'nals in the air is

the te"hni"al "a#a"ity of the transmitters and other eBui#ment



em#loyed y the road"aster. Fhile the road"aster may use aless #o%erful transmitter to limit its "o$era'e, this is merely a

usiness strate'y or de"ision and not an inherent limitation %hentransmission is throu'h "a le.

&""ordin'ly, the nature of road"astin' is to s"atter thesi'nals in its %idest area of "o$era'e as #ossi le. n this s"ore, itmay e said that ma9in' #u li" means that a""essi ility isundis"riminatin' as lon' as it ;is< %ithin the ran'e of thetransmitter and eBui#ment of the road"aster. hat the mediumthrou'h %hi"h the &##ellant "arries the &##ellees si'nal, that is$ia satellite, does not diminish the fa"t that it o#erates andfun"tions as a "a le tele$ision. 4t remains that the &##ellantstransmission of si'nals $ia its = ? satellite tele$ision ser$i"e"annot e "onsidered %ithin the #ur$ie% of road"astin'. > > >

> > > > his J"e also nds no e$iden"e on re"ord sho%in' that

the &##ellant has #ro$ided de"ry#tin' means to the #u li"indis"riminately. Considerin' the nature of this "ase, %hi"h is#uniti$e in fa"t, the urden of #ro$in' the e>isten"e of theelements "onstitutin' the a"ts #unisha le rests on the shoulderof the "om#lainant.

&""ordin'ly, this J"e nds that there is no

re road"astin' on the #art of the &##ellant of the &##ellees

#ro'rams on Channels and 3, as de ned under the RomeCon$ention. ; <

Knder the Rome Con$ention, re road"astin' is the simultaneous

road"astin' y one road"astin' or'ani-ation of the road"ast of anotherroad"astin' or'ani-ation. he For9in' a#er ; 3< #re#ared y the Se"retariat

of the Standin' Committee on Co#yri'ht and Related Ri'hts de nesroad"astin' or'ani-ations as entities that ta9e the nan"ial and editorial

res#onsi ility for the sele"tion and arran'ement of, and in$estment in, thetransmitted "ontent. ; *< E$idently, 2S4 %ould not Bualify as a road"astin'or'ani-ation e"ause it does not ha$e the aforementioned res#onsi ilitiesim#osed u#on road"astin' or'ani-ations, su"h as & S C N.

& S C N "reates and transmits its o%n si'nalsA 2S4 merely "arries

su"h si'nals %hi"h the $ie%ers re"ei$e in its unaltered form. 2S4 does not#rodu"e, sele"t, or determine the #ro'rams to e sho%n in Channels and

3. i9e%ise, it does not #ass itself o as the ori'in or author of su"h#ro'rams. 4nsofar as Channels and 3 are "on"erned, 2S4 merelyretransmits the same in a""ordan"e %ith 2emorandum Cir"ular +* +8









88. Fith re'ard to its #remium "hannels, it uys the "hannels from "ontent#ro$iders and transmits on an as is asis to its $ie%ers. Clearly, 2S4 doesnot #erform the fun"tions of a road"astin' or'ani-ationA thus, it "annot esaid that it is en'a'ed in re road"astin' Channels and 3.

he =ire"tor General of the 4 and the Court of &##eals also "orre"tlyfound that 2S4s ser$i"es are similar to a "a le tele$ision system e"ausethe ser$i"es it renders fall under "a le retransmission, as des"ri ed in theFor9in' a#er, to %it:

(G) Ca le Retransmission *7. Fhen a radio or tele$ision #ro'ram is ein' road"ast, it "an

e retransmitted to ne% audien"es y means of "a le or %ire. 4nthe early days of "a le tele$ision, it %as mainly used to im#ro$esi'nal re"e#tion, #arti"ularly in so "alled shado% -ones, or to

distri ute the si'nals in lar'e uildin's or uildin'"om#le>es. Fith im#ro$ements in te"hnolo'y, "a le o#eratorsno% often re"ei$e si'nals from satellites efore retransmittin'them in an unaltered form to their su s"ri ers throu'h "a le. *8. 4n #rin"i#le, "a le retransmission "an e either simultaneous%ith the road"ast o$er the air or delayed (deferredtransmission) on the asis of a >ation or a re#rodu"tion of a

>ation. urthermore, they mi'ht e unaltered or altered, fore>am#le throu'h re#la"ement of "ommer"ials, et". I% "%"ra4,ho "<"r, 'h" '"r( r"'ra%$(#$$#o% $""($ 'o )" r"$"r<"&

or $/ch 'ra%$(#$$#o%$ h#ch ar" )o'h $#(/4'a%"o/$ a%&/%a4'"r"&. *-. Th" Ro(" Co%<"%'#o% &o"$ %o' ra%' r# h'$ a a#%$'/%a/'hor#E"& ca)4" r"'ra%$(#$$#o%. #'ho/' $/ch a r# h',ca)4" o "ra'or$ ca% r"'ra%$(#' )o'h &o("$'#c a%& or"# %o<"r 'h" a#r )roa&ca$'$ $#(/4'a%"o/$4 'o 'h"#r$/)$cr#)"r$ #'ho/' "r(#$$#o% ro( 'h" )roa&ca$'#%or a%#Ea'#o%$ or o'h"r r# h'ho4&"r$ a%& #'ho/'o)4# a'#o% 'o a r"(/%"ra'#o%. ; L< (Em#hasis added)

hus, %hile the Rome Con$ention 'i$es road"astin' or'ani-ations theri'ht to authori-e or #rohi it the re road"astin' of its road"ast, ho%e$er,this #rote"tion does not e>tend to "a le retransmission. he retransmissionof & S C Ns si'nals y 2S4 %hi"h fun"tions essentially as a "a le tele$isiondoes not therefore "onstitute re road"astin' in $iolation of the formersintelle"tual #ro#erty ri'hts under the 4 Code.





4t must e em#hasi-ed that the la% on "o#yri'ht is not a solute. he 4Code #ro$ides that:

Se". 18*. imitations on Co#yri'ht.

18*.1. Not%ithstandin' the #ro$isions of Cha#ter D, thefollo%in' a"ts shall not "onstitute infrin'ement of "o#yri'ht: > > > >(h) he use made of a %or9 y or under the dire"tion or

"ontrol of the Go$ernment, y the National i rary or yedu"ational, s"ienti " or #rofessional institutions %here su"h useis in the #u li" interest and is "om#ati le %ith fair useA

he "arria'e of & S C Ns si'nals y $irtue of the must "arry rule in2emorandum Cir"ular No. +* +8 88 is under the dire"tion and "ontrol of the

'o$ernment thou'h the N C %hi"h is $ested %ith e>"lusi$e !urisdi"tion tosu#er$ise, re'ulate and "ontrol tele"ommuni"ations and road"astser$i"es@fa"ilities in the hili##ines. ; 6< he im#osition of the must "arry rule is%ithin the N Cs #o%er to #romul'ate rules and re'ulations, as #u li" safetyand interest may reBuire, to en"oura'e a lar'er and more e e"ti$e use of "ommuni"ations, radio and tele$ision road"astin' fa"ilities, and to maintaine e"ti$e "om#etition amon' #ri$ate entities in these a"ti$ities %hene$er theCommission nds it reasona ly feasi le. ; 7< &s "orre"tly o ser$ed y the=ire"tor General of the 4 :

&""ordin'ly, the 2ust Carry Rule under N C Cir"ular No. * +8 88

falls under the fore'oin' "ate'ory of limitations on"o#yri'ht. his J"e a'rees %ith the &##ellant ;hereinres#ondent 2S4< that the 2ust Carry Rule is in "onsonan"e %iththe #rin"i#les and o !e"ti$es underlyin' E>e"uti$e rder No. *36,; 8< to %it:

he ili#ino #eo#le must e 'i$en %ider a""ess tomore sour"es of ne%s, information, edu"ation, s#ortse$ent and entertainment #ro'rams other than those#ro$ided for y mass media and a orded tele$ision#ro'rams to attain a %ell informed, %ell $ersed and"ulturally re ned "iti-enry and enhan"e their so"ioe"onomi" 'ro%th:

F?ERE&S, "a le tele$ision (C& D) systems"ould su##ort or su##lement the ser$i"es #ro$ided

y tele$ision road"ast fa"ilities, lo"al and o$erseas,as the national information hi'h%ay to the"ountryside. ; /<











he Court of &##eals li9e%ise "orre"tly o ser$ed that: ; <he $ery intent and s#irit of the N C Cir"ular %ill #re$ent asituation %here y station o%ners and a fe% net%or9s %ould ha$e

unfettered #o%er to ma9e time a$aila le only to the hi'hestidders, to "ommuni"ate only their o%n $ie%s on #u li" issues,#eo#le, and to #ermit on the air only those %ith %hom theya'reed "ontrary to the state #oli"y that the (fran"hise) 'ranteeli9e the #etitioner, #ri$ate res#ondent and other D stationo%ners, shall #ro$ide at all times sound and alan"ed#ro'rammin' and assist in the fun"tions of #u li" informationand edu"ation.

his is for the rst time that %e ha$e a stru"ture that %or9s toa""om#lish e>#li"it state #oli"y 'oals. ;3+<

4ndeed, intelle"tual #ro#erty #rote"tion is merely a means to%ards theend of ma9in' so"iety ene t from the "reation of its men and %omen of talent and 'enius. his is the essen"e of intelle"tual #ro#erty la%s, and ite>#lains %hy "ertain #rodu"ts of in'enuity that are "on"ealed from the #u li"are outside the #ale of #rote"tion a orded y the la%. 4t also e>#lains %hythe author or the "reator en!oys no more ri'hts than are "onsistent %ith#u li" %elfare. ;31<

urther, as "orre"tly o ser$ed y the Court of &##eals, the must "arry

rule as %ell as the le'islati$e fran"hises 'ranted to oth & S C N and 2S4

are in "onsonan"e %ith state #oli"ies enshrined in the Constitution,s#e"i "ally Se"tions /, ;3 < 17, ;33<and * ;3*< of &rti"le 44 on the =e"laration of rin"i#les and State oli"ies. ;3L<

& S C N %as 'ranted a le'islati$e fran"hise under Re#u li" &"t No.

7/66, Se"tion 1 of %hi"h authori-es it to "onstru"t, o#erate and maintain, for"ommer"ial #ur#oses and in the #u li" interest, tele$ision and radio

road"astin' in and throu'hout the hili##ines > > >. Se"tion * thereof mandates that it shall #ro$ide adeBuate #u li" ser$i"e time to ena le the'o$ernment, throu'h the said road"astin' stations, to rea"h the #o#ulationon im#ortant #u li" issuesA #ro$ide at all times sound and alan"ed#ro'rammin'A #romote #u li" #arti"i#ation su"h as in "ommunity#ro'rammin'A assist in the fun"tions of #u li"information and edu"ation > >>.

2S4 %as li9e%ise 'ranted a le'islati$e fran"hise under Re#u li" &"t

No. 863+, Se"tion * of %hi"h similarly states that it shall #ro$ide adeBuate#u li" ser$i"e time to ena le the 'o$ernment, throu'h the said road"astin'stations, to rea"h the #o#ulation on im#ortant #u li" issuesA #ro$ide at all















times sound and alan"ed #ro'rammin'A #romote #u li" #arti"i#ation su"has in "ommunity #ro'rammin'A assist in the fun"tions of #u li" informationand edu"ation > > >. Se"tion L, #ara'ra#h of the same la% #ro$ides thatthe radio s#e"trum is a nite resour"e that is a #art of the national #atrimonyand the use thereof is a #ri$ile'e "onferred u#on the 'rantee y the State

and may e %ithdra%n anytime, after due #ro"ess. 4n eleco-. 3 Broadcast "ttys. o# the Phils., Inc. v. CFM % C , ;36< the

Court held that a fran"hise is a mere #ri$ile'e %hi"h may e reasona lyurdened %ith some form of #u li" ser$i"e. hus:

&ll road"astin', %hether y radio or y tele$ision stations, isli"ensed y the 'o$ernment. &ir%a$e freBuen"ies ha$e to eallo"ated as there are more indi$iduals %ho %ant to road"astthan there are freBuen"ies to assi'n. & fran"hise is thus a#ri$ile'e su !e"t, amon' other thin's, to amendment y

Con'ress in a""ordan"e %ith the "onstitutional #ro$ision that anysu"h fran"hise or ri'ht 'ranted . . . shall e su !e"t toamendment, alteration or re#eal y the Con'ress %hen the"ommon 'ood so reBuires.

> > > >

4ndeed, #ro$isions for C 2E EC ime ha$e een made yamendment of the fran"hises of radio and tele$ision road"aststations and, until the #resent "ase %as rou'ht, su"h #ro$isionshad not een thou'ht of as ta9in' #ro#erty %ithout !ust

"om#ensation. &rt. 44, 11 of the Constitution authori-es theamendment of fran"hises for the "ommon 'ood. Fhat ettermeasure "an e "on"ei$ed for the "ommon 'ood than one forfree air time for the ene t not only of "andidates ut e$en moreof the #u li", #arti"ularly the $oters, so that they %ill e fullyinformed of the issues in an ele"tionW ;4<t is the ri'ht of the$ie%ers and listeners, not the ri'ht of the road"asters, %hi"h is#aramount.

Nor indeed "an there e any "onstitutional o !e"tion to the

reBuirement that road"ast stations 'i$e free air time. E$en inthe Knited States, there are res#onsi le s"holars %ho elie$ethat 'o$ernment "ontrols on road"ast media "an"onstitutionally e instituted to ensure di$ersity of $ie%s andattention to #u li" a airs to further the system of freee>#ression. or this #ur#ose, road"ast stations may e reBuiredto 'i$e free air time to "andidates in an ele"tion. hus, rofessorCass R. Sunstein of the Kni$ersity of Chi"a'o a% S"hool, in





ur'in' reforms in re'ulations a e"tin' the road"ast industry,%rites:

> > > >

4n truth, radio and tele$ision road"astin' "om#anies,%hi"h are 'i$en fran"hises, do not o%n the air%a$es andfreBuen"ies throu'h %hi"h they transmit road"ast si'nals andima'es. hey are merely 'i$en the tem#orary #ri$ile'e of usin'them. Sin"e a fran"hise is a mere #ri$ile'e, the e>er"ise of the#ri$ile'e may reasona ly e urdened %ith the #erforman"e ythe 'rantee of some form of #u li" ser$i"e. > > > ;37<

here is li9e%ise no merit to & S C Ns "laim that 2S4s "arria'e of its

si'nals is for a "ommer"ial #ur#oseA that its ein' the "ountrys to#road"astin' "om#any, the a$aila ility of its si'nals alle'edly enhan"es

2S4s attra"ti$eness to #otential "ustomersA;38<

or that the unauthori-ed"arria'e of its si'nals y 2S4 has "reated "om#etition et%een its 2etro2anila and re'ional stations.

& S C N #resented no su stantial e$iden"e to #ro$e that 2S4 "arried

its si'nals for #ro tA or that su"h "arria'e ad$ersely a e"ted the usinesso#erations of its re'ional stations. E>"e#t for the testimonies of its %itnesses,;3/< no studies, statisti"al data or information ha$e een su mitted ine$iden"e.

&dministrati$e "har'es "annot e ased on mere s#e"ulation or

"on!e"ture. he "om#lainant has the urden of #ro$in' y su stantiale$iden"e the alle'ations in the "om#laint. ;*+< 2ere alle'ation is not e$iden"e,and is not eBui$alent to #roof. ;*1<

&nyone in the "ountry %ho o%ns a tele$ision set and antenna "an

re"ei$e & S C Ns si'nals for free. ther road"astin' or'ani-ations %ithfree to air si'nals su"h as G2& 7, R N /, & C L, and 4 C 13 "an li9e%ise ea""essed for free.No #ayment is reBuired to $ie% the said"hannels ;* < e"ause these road"astin' net%or9s do not 'enerate re$enuefrom su s"ri#tion from their $ie%ers ut from airtime re$enue from "ontra"ts%ith "ommer"ial ad$ertisers and #rodu"ers, as %ell as from dire"t sales.

4n "ontrast, "a le and = ? tele$ision earn re$enues from $ie%er

su s"ri#tion. 4n the "ase of 2S4, it o ers its "ustomers #remium #aid"hannels from "ontent #ro$iders li9e Star 2o$ies, Star Forld, a"9 D, and& N, amon' others, thus allo%in' its "ustomers to 'o eyond the limits of

ree D and Ca le D. ;*3< 4t does not ad$ertise itself as a lo"al "hannel "arriere"ause these lo"al "hannels "an e $ie%ed %ith or %ithout = ? tele$ision.

















Rele$antly, 2S4s "arria'e of Channels and 3 is material in arri$in'at the ratin's and audien"e share of & S C N and its #ro'rams. heseratin's hel# "ommer"ial ad$ertisers and #rodu"ers de"ide %hether to uyairtime from the net%or9. hus, the must "arry rule is a"tually ad$anta'eousto the road"astin' net%or9s e"ause it #ro$ides them %ith in"reased

$ie%ershi# %hi"h attra"ts "ommer"ial ad$ertisers and #rodu"ers. n the other hand, the "arria'e of free to air si'nals im#oses a urden

to "a le and = ? tele$ision #ro$iders su"h as 2S4. 2S4 uses none of & SC Ns resour"es or eBui#ment and "arries the si'nals and shoulders the "osts%ithout any re"ourse of "har'in'. ;**< 2oreo$er, su"h "arria'e of si'nals ta9esu# "hannel s#a"e %hi"h "an other%ise e utili-ed for other #remium #aid"hannels.

here is no merit to & S C Ns ar'ument that 2S4s "arria'e of

Channels and 3 resulted in "om#etition et%een its 2etro 2anila and

re'ional stations. & S C N is free to de"ide to #attern its re'ional#ro'rammin' in a""ordan"e %ith #er"ei$ed demands of the re'ionA ho%e$er,it "annot im#ose this 9ind of #ro'rammin' on the re'ional $ie%ers %ho arealso entitled to the free to air "hannels. 4t must e em#hasi-ed that, as anational road"astin' or'ani-ation, one of & S C Ns res#onsi ilities is tos"atter its si'nals to the %idest area of "o$era'e as #ossi le. hat it shouldlimit its si'nal rea"h for the sole #ur#ose of 'ainin' #ro t for its re'ionalstations undermines #u li" interest and de#ri$es the $ie%ers of their ri'ht toa""ess to information.

4ndeed, tele$ision is a usinessA ho%e$er, the %elfare of the #eo#le

must not e sa"ri "ed in the #ursuit of #ro t. he ri'ht of the $ie%ers andlisteners to the most di$erse "hoi"e of #ro'rams a$aila le is #aramount.;*L< he =ire"tor General "orre"tly o ser$ed, thus:

he 2ust Carry Rule fa$ors oth road"astin'

or'ani-ations and the #u li". 4t #re$ents "a le tele$ision"om#anies from e>"ludin' road"astin' or'ani-ation es#e"iallyin those #la"es not rea"hed y si'nal. &lso, the rule #re$ents"a le tele$ision "om#anies from de#ri$in' $ie%ers in far Hun'areas the en!oyment of #ro'rams a$aila le to "ity $ie%ers. 4nfa"t, this J"e nds the rule more urdensome on the #art of the "a le tele$ision "om#anies. he latter "arries the tele$isionsi'nals and shoulders the "osts %ithout any re"ourse of "har'in'. n the other hand, the si'nals that are "arried y "a letele$ision "om#anies are dis#ersed and s"attered y thetele$ision stations and any ody %ith a tele$ision set is free to#i"9 them u#.







Fith its enormous resour"es and $aunted te"hnolo'i"al"a#a ilities, &##ellees ;herein #etitioner & S C N< road"astsi'nals "an rea"h almost e$ery "orner of the ar"hi#ela'o. hat ins#ite of su"h "a#a"ity, it "hooses to maintain re'ional stations, isa usiness de"ision. hat the 2ust Carry Rule ad$ersely a e"ts

the #ro ta ility of maintainin' su"h re'ional stations sin"e there%ill e "om#etition et%een them and its 2etro 2anila station iss#e"ulati$e and an attem#t to e>tra#olate the e e"ts of therule. &s dis"ussed a o$e, &##ellants = ? satellite tele$isionser$i"es is of limited su s"ri#tion. here %as not e$en a sho%in'on #art of the &##ellee the num er of &##ellants su s"ri ers inone re'ion as "om#ared to non su s"ri in' tele$ision o%ners. 4nany e$ent, if this J"e is to en'a'e in "on!e"ture, su"h"om#etition et%een the re'ional stations and the 2etro 2anilastation %ill ene t the #u li" as su"h "om#etition %ill most li9elyresult in the #rodu"tion of etter tele$ision #ro'rams. ;*6<

&ll told, %e nd that the Court of &##eals "orre"tly u#held the de"isionof the 4 =ire"tor General that 2S4 did not infrin'e on & S C Nsintelle"tual #ro#erty ri'hts under the 4 Code. he ndin's of fa"ts of administrati$e odies "har'ed %ith their s#e"i " eld of e>#ertise, area orded 'reat %ei'ht y the "ourts, and in the a sen"e of su stantialsho%in' that su"h ndin's are made from an erroneous estimation of thee$iden"e #resented, they are "on"lusi$e, and in the interest of sta ility of the'o$ernmental stru"ture, should not e distur ed. ;*7<

2oreo$er, the fa"tual ndin's of the Court of &##eals are "on"lusi$e on

the #arties and are not re$ie%a le y the Su#reme Court. hey "arry e$enmore %ei'ht %hen the Court of &##eals aJrms the fa"tual ndin's of a lo%erfa"t ndin' ody, ;*8< as in the instant "ase.

here is li9e%ise no merit to & S C Ns "ontention that the

2emorandum Cir"ular e>"ludes from its "o$era'e = ? tele$ision ser$i"essu"h as those #ro$ided y 2S4. Se"tion 6. of the 2emorandum Cir"ularreBuires all "a le tele$ision system o#erators o#eratin' in a "ommunity%ithin Grade & or "ontours to "arry the tele$ision si'nals of the authori-edtele$ision road"ast stations. ;*/< he rationale ehind its issuan"e "an efound in the %hereas "lauses %hi"h state:

Fhereas, Ca le ele$ision Systems or Community &ntenna

ele$ision (C& D) ha$e sho%n their a ility to o er additional#ro'rammin' and to "arry mu"h im#ro$ed road"ast si'nals inthe remote areas, there y enri"hin' the li$es of the rest of the#o#ulation throu'h the dissemination of so"ial, e"onomi",edu"ational information and "ultural #ro'ramsA











Fhereas, the national 'o$ernment su##orts the #romotesthe orderly 'ro%th of the Ca le ele$ision industry %ithin theframe%or9 of a re'ulated fee enter#rise, %hi"h is a hallmar9 of ademo"rati" so"ietyA

Fhereas, #u li" interest so reBuires that mono#olies in"ommer"ial mass media shall e re'ulated or #rohi ited, hen"e,to a"hie$e the same, the "a le D industry is made #art of the

road"ast mediaA Fhereas, #ursuant to &"t 38*6 as amended and E>e"uti$e

rder +L 'rantin' the National ele"ommuni"ationsCommission the authority to set do%n rules and re'ulations inorder to #rote"t the #u li" and #romote the 'eneral %elfare, theNational ele"ommuni"ations Commission here y #romul'atesthe follo%in' rules and re'ulations on Ca le ele$ision SystemsA

he #oli"y of the 2emorandum Cir"ular is to "arry im#ro$ed si'nals inremote areas for the 'ood of the 'eneral #u li" and to #romotedissemination of information. 4n line %ith this #oli"y, it is "lear that = ?tele$ision should e deemed "o$ered y the 2emorandumCir"ular. Not%ithstandin' the di erent te"hnolo'ies em#loyed, oth = ? and"a le tele$ision ha$e the a ility to "arry im#ro$ed si'nals and #romotedissemination of information e"ause they o#erate and fun"tion in the same%ay.

4n its =e"em er +, ++ letter, ;L+< the N C e>#lained that oth = ?

and "a le tele$ision ser$i"es are of a similar nature, the only di eren"eein' the medium of deli$erin' su"h ser$i"es. hey "an "arry road"astsi'nals to the remote areas and #ossess the "a#a ility to enri"h the li$es of the residents thereof throu'h the dissemination of so"ial, e"onomi",edu"ational information and "ultural #ro'rams. ConseBuently, %hile the2emorandum Cir"ular refers to "a le tele$ision, it should e understood asto in"lude = ? tele$ision %hi"h #ro$ides essentially the same ser$i"es.

4n astern eleco--unications Philippines, Inc. v. International

Co--unication Corporation , ;L1< %e held:

he N C, ein' the 'o$ernment a'en"y entrusted %ith there'ulation of a"ti$ities "omin' under its s#e"ial and te"hni"alforte, and #ossessin' the ne"essary rule ma9in' #o%er toim#lement its o !e"ti$es, is in the est #osition to inter#ret itso%n rules, re'ulations and 'uidelines. he Court has"onsistently yielded and a""orded 'reat res#e"t to theinter#retation y administrati$e a'en"ies of their o%n rulesunless there is an error of la%, a use of #o%er, la"9 of !urisdi"tion







or 'ra$e a use of dis"retion "learly "onHi"tin' %ith the letter ands#irit of the la%. ;L <

Fith re'ard to the issue of the "onstitutionality of the must "arry rule,

the Court nds that its resolution is not ne"essary in the dis#osition of the

instant "ase. ne of the essential reBuisites for a su""essful !udi"ial inBuiryinto "onstitutional Buestions is that the resolution of the "onstitutionalBuestion must e ne"essary in de"idin' the "ase. ;L3< 4n Spouses Mirasol v.Court o# "ppeals , ;L*<%e held:

&s a rule, the "ourts %ill not resol$e the "onstitutionality of

a la%, if the "ontro$ersy "an e settled on other 'rounds. he#oli"y of the "ourts is to a$oid rulin' on "onstitutional Buestionsand to #resume that the a"ts of the #oliti"al de#artments are$alid, a sent a "lear and unmista9a le sho%in' to the"ontrary. o dou t is to sustain. his #resum#tion is ased on the

do"trine of se#aration of #o%ers. his means that the measurehad rst een "arefully studied y the le'islati$e and e>e"uti$ede#artments and found to e in a""ord %ith the Constitution

efore it %as nally ena"ted and a##ro$ed. ;LL<

he instant "ase %as instituted for $iolation of the 4 Code and

infrin'ement of & S C Ns road"astin' ri'hts and "o#yri'ht, %hi"h "an eresol$ed %ithout 'oin' into the "onstitutionality of 2emorandum Cir"ular No.+* +8 88. &s held y the Court of &##eals, the only rele$an"e of the "ir"ularin this "ase is %hether or not "om#lian"e there%ith should e "onsideredmanifestation of la"9 of intent to "ommit infrin'ement, and if it is, %hether

su"h la"9 of intent is a $alid defense a'ainst the "om#laint of #etitioner.;L6<

he re"ords sho% that #etitioner assailed the "onstitutionality of

2emorandum Cir"ular No. +* +8 88 y %ay of a "ollateral atta"9 efore theCourt of &##eals. 4n Philippine @ational Ban! v. Pal-a , ;L7< %e ruled that forreasons of #u li" #oli"y, the "onstitutionality of a la% "annot e "ollaterallyatta"9ed. & la% is deemed $alid unless de"lared null and $oid y a"om#etent "ourtA more so %hen the issue has not een duly #leaded in thetrial "ourt. ;L8<

&s a 'eneral rule, the Buestion of "onstitutionality must e raised atthe earliest o##ortunity so that if not raised in the #leadin's, ordinarily itmay not e raised in the trial, and if not raised in the trial "ourt, it %ill not e"onsidered on a##eal. ;L/< 4nPhilippine 2eterans Ban! v. Court o# "ppeals , ;6+< %eheld:

Fe de"line to rule on the issue of "onstitutionality as all

the reBuisites for the e>er"ise of !udi"ial re$ie% are not #resentherein. S "c#Jca44 , 'h" /"$'#o% o co%$'#'/'#o%a4#' #44





















%o' )" a$$"& / o% ) 'h" Co/r' /%4"$$, a' 'h" Jr$'o or'/%#' , #' #$ ro "r4 ra#$"& a%& r"$"%'"& #% a%a ro r#a'" ca$", a&" /a'"4 ar /"&, a%& #$ %"c"$$ar 'oa &"'"r(#%a'#o% o 'h" ca$", ar'#c/4ar4 h"r" 'h" #$$/"o co%$'#'/'#o%a4#' #$ 'h" <"r $is mota r"$"%'"&. > > > ;61<

inally, %e nd that the dismissal of the #etition for "ontem#t led y& S C N is in order.

4ndire"t "ontem#t may either e initiated (1) -otu proprio y the "ourt

y issuin' an order or any other formal "har'e reBuirin' the res#ondent tosho% "ause %hy he should not e #unished for "ontem#t or ( ) y the lin'of a $eri ed #etition, "om#lyin' %ith the reBuirements for lin' initiatory#leadin's. ;6 <

& S C N led a $eri ed #etition efore the Court of &##eals,

%hi"h %as do"9eted C& G.R. S No. /+76 , for 2S4s alle'ed diso edien"e tothe Resolution and em#orary Restrainin' rder, oth dated uly 18, ++L,issued in C& G.R. S No. 88+/ . ?o%e$er, after the "ases %ere "onsolidated,the Court of &##eals did not reBuire 2S4 to "omment on the #etition for"ontem#t. 4t ruled on the merits of C& G.R. S No. 88+/ and ordered thedismissal of oth #etitions.

& S C N ar'ues that the Court of &##eals erred in dismissin' the

#etition for "ontem#t %ithout ha$in' ordered res#ondents to "omment onthe same. ConseBuently, it %ould ha$e us reinstate C& G.R. No. /+76 andorder res#ondents to sho% "ause %hy they should not e held in "ontem#t.

4t ears stressin' that the #ro"eedin's for #unishment of indire"t"ontem#t are "riminal in nature. he modes of #ro"edure and rules of e$iden"e ado#ted in "ontem#t #ro"eedin's are similar in nature to thoseused in "riminal #rose"utions. ;63< Fhile it may e ar'ued that the Court of &##eals should ha$e ordered res#ondents to "omment, the issue has eenrendered moot in li'ht of our rulin' on the merits. o order res#ondents to"omment and ha$e the Court of &##eals "ondu"t a hearin' on the "ontem#t"har'e %hen the main "ase has already een dis#osed of in fa$or of 2S4%ould e "ir"uitous. Fhere the issues ha$e e"ome moot, there is no

!usti"ia le "ontro$ersy, there y renderin' the resolution of the same of no#ra"ti"al use or $alue. ;6*<

H R 8!R , the #etition is D NI D. he uly 1 , ++6 =e"ision of

the Court of &##eals in C& G.R. S Nos. 88+/ and /+76 , sustainin' thendin's of the =ire"tor General of the 4ntelle"tual ro#erty J"e and

dismissin' the #etitions led y & S C N road"astin' Cor#oration, and the=e"em er 11, ++6 Resolution denyin' the motion for re"onsideration,are A88IRM D .












S! !RD R D.

G.R. No. 11031 . A/ /$' 2 , 1--6]

C!9UMBIA ICTUR S, INC., !RI!N ICTUR S C!R !RATI!N,ARAM!UNT ICTUR S C!R !RATI!N, T NTI TH C NTURY

8!@ 8I9M C!R !RATI!N, UNIT D ARTISTS C!R !RATI!N,UNI RSA9 CITY STUDI!S, INC., TH A9T DISN Y C!M ANY,a%& ARN R BR!TH RS, INC., petitioners, vs . C!URT !8

A A9S, SUNSHIN H!M ID !, INC. a%& DANI9! A.9INDARI!, respondents .

D C I S I ! N

R GA9AD!, J.>

efore us is a #etition for re$ie% on certiorari of the de"ision of the Courtof &##eals ;1< #romul'ated on uly , 1// and its resolution ; < of 2ay 1+,1//3 denyin' #etitioners motion for re"onsideration, oth of %hi"h sustainedthe order ;3< of the Re'ional rial Court, ran"h 133, 2a9ati, 2etro 2anila,

dated No$em er , 1/88 for the Buashal of Sear"h Farrant No. 87 +L3earlier issued #er its o%n order ;*< on Se#tem er L, 1/88 for $iolation of Se"tion L6 of residential =e"ree No. */, as amended, other%ise 9no%n asthe =e"ree on the rote"tion of 4ntelle"tual ro#erty.

he material fa"ts found y res#ondent a##ellate "ourt are as follo%s:

Com#lainants thru "ounsel lod'ed a formal "om#laint %ith the Nationalureau of 4n$esti'ation for $iolation of = No. */, as amended, and sou'ht

its assistan"e in their anti lm #ira"y dri$e. &'ents of the N 4 and #ri$ateresear"hers made dis"reet sur$eillan"e on $arious $ideo esta lishments in2etro 2anila in"ludin' Sunshine ?ome Dideo 4n". (Sunshine for re$ity),

o%ned and o#erated y =anilo &. elindario %ith address at No. 6 2ayfairCenter, 2a'allanes, 2a9ati, 2etro 2anila.

n No$em er 1*, 1/87, N 4 Senior &'ent auro C. Reyes a##lied for asear"h %arrant %ith the "ourt a 4uo a'ainst Sunshine see9in' the sei-ure,amon' others, of #irated $ideo ta#es of "o#yri'hted lms all of %hi"h %ereenumerated in a list atta"hed to the a##li"ationA and, tele$ision sets, $ideo"assettes and@or laser dis" re"ordin's eBui#ment and other ma"hines and











#ara#hernalia used or intended to e used in the unla%ful e>hi ition,sho%in', re#rodu"tion, sale, lease or dis#osition of $ideo'rams ta#es in the#remises a o$e des"ri ed. 4n the hearin' of the a##li"ation, N 4 Senior&'ent auro C. Reyes, u#on Buestions y the "ourt a 4uo , reiterated insu stan"e his a$erments in his aJda$it. ?is testimony %as "orro orated y

another %itness, 2r. Rene C. alta-ar. &tty. Ri"o D. =omin'os de#osition %asalso ta9en. n the asis of the aJda$its and de#ositions of N 4 Senior &'entauro C. Reyes, Rene C. alta-ar and &tty. Ri"o D. =omin'o, Sear"h Farrant

No 87 +L3 for $iolation of Se"tion L6 of = No. */, as amended, %as issuedy the "ourt a 4uo .

he sear"h %arrant %as ser$ed at a out 1:*L #.m. on =e"em er 1*, 1/87to Sunshine and@or their re#resentati$es. 4n the "ourse of the sear"h of the#remises indi"ated in the sear"h %arrant, the N 4 &'ents found and sei-ed$arious $ideo ta#es of duly "o#yri'hted motion #i"tures@ lms o%ned ore>"lusi$ely distri uted y #ri$ate "om#lainants, and ma"hines, eBui#ment,tele$ision sets, #ara#hernalia, materials, a""essories all of %hi"h %erein"luded in the re"ei#t for #ro#erties a""om#lished y the raidin' team. Co#yof the re"ei#t %as furnished and@or tendered to 2r. =anilo &. elindario,re'istered o%ner #ro#rietor of Sunshine ?ome Dideo.

n =e"em er 16, 1/87, a Return of Sear"h Farrant %as led %ith theCourt.

& 2otion o ift the rder of Sear"h Farrant %as led ut %as laterdenied for la"9 of merit (#. 8+, Re"ords).

& 2otion for re"onsideration of the rder of denial %as led. he"ourt a 4uo 'ranted the said motion for re"onsideration and !usti ed it in this

manner:

4t is undis#uted that the master ta#es of the "o#yri'hted lms from %hi"hthe #irated lms %ere alle'edly "o#ies (si"), %ere ne$er #resented in the#ro"eedin's for the issuan"e of the sear"h %arrants in Buestion. he ordersof the Court 'rantin' the sear"h %arrants and denyin' the ur'ent motion tolift order of sear"h %arrants %ere, therefore, issued in error. ConseBuently,they must e set aside. (#. 13, &##ellants rief) ;L<

etitioners thereafter a##ealed the order of the trial "ourt 'rantin'#ri$ate res#ondents motion for re"onsideration, thus liftin' the sear"h%arrant %hi"h it had therefore issued, to the Court of &##eals. &s stated atthe outset, said a##eal %as dismissed and the motion for re"onsiderationthereof %as denied. ?en"e, this #etition %as rou'ht to this Court#arti"ularly "hallen'in' the $alidity of res#ondent "ourts retroa"ti$ea##li"ation of the rulin' in 8th Century $o9 $il- Corporation vs. Court o#

"ppeals, et al ., ;6< in dismissin' #etitioners a##eal and u#holdin' the Buashalof the sear"h %arrant y the trial "ourt.







I4n"e#ti$ely, %e shall settle the #ro"edural "onsiderations on the matter of

and the "hallen'e to #etitioners le'al standin' in our "ourts, they ein'forei'n "or#orations not li"ensed to do usiness in the hili##ines.

ri$ate res#ondents a$er that ein' forei'n "or#orations, #etitionersshould ha$e su"h li"ense to e a le to maintain an a"tion in hili##ine"ourts. 4n so "hallen'in' #etitioners #ersonality to sue, #ri$ate res#ondents#oint to the fa"t that #etitioners are the "o#yri'ht o%ners or o%ners of e>"lusi$e ri'hts of distri ution in the hili##ines of "o#yri'hted motion#i"tures or lms, and also to the a##ointment of &tty. Ri"o D. =omin'o astheir attorney in fa"t, as ein' "onstituti$e of doin' usiness in the

hili##ines under Se"tion 1(f) (1) and ( ), Rule 1 of the Rules of the oard of 4n$estments. &s forei'n "or#orations doin' usiness in the hili##ines,Se"tion 133 of atas am ansa l'. 68, or the Cor#oration Code of the

hili##ines, denies them the ri'ht to maintain a suit in hili##ine "ourts in

the a sen"e of a li"ense to do usiness.ConseBuently, they ha$e no ri'ht toas9 for the issuan"e of a sear"h %arrant. ;7<

4n refutation, #etitioners Hatly deny that they are doin' usiness in thehili##ines, ;8< and "ontend that #ri$ate res#ondents ha$e not addu"ed

e$iden"e to #ro$e that #etitioners are doin' su"h usiness here, as %ouldreBuire them to e li"ensed y the Se"urities and E>"han'e Commission,other than a$erments in the Buoted #ortions of #etitioners ##osition toKr'ent 2otion to ift rder of Sear"h Farrant dated &#ril 8, 1/88 and &tty.Ri"o D. =omin'os aJda$it of =e"em er 1*, 1/87. 2oreo$er, an e>"lusi$eri'ht to distri ute a #rodu"t or the o%nershi# of su"h e>"lusi$e ri'ht does not"on"lusi$ely #ro$e the a"t of doin' usiness nor esta lish the #resum#tion of doin' usiness. ;/<

he Cor#oration Code #ro$ides:

Se". 133. 6oin: 1usiness &ithout a license . No forei'n "or#orationtransa"tin' usiness in the hili##ines %ithout a li"ense, or its su""essors orassi'ns, shall e #ermitted to maintain or inter$ene in any a"tion, suit or#ro"eedin' in any "ourt or administrati$e a'en"y of the hili##inesA ut su"h"or#oration may e sued or #ro"eeded a'ainst efore hili##ine "ourts oradministrati$e tri unals on any $alid "ause of a"tion re"o'ni-ed under

hili##ine la%s.

he o tainment of a li"ense #res"ri ed y Se"tion 1 L of the Cor#orationCode is not a "ondition #re"edent to the maintenan"e of any 9ind of a"tion in

hili##ine "ourts y a forei'n "or#oration. ?o%e$er, under the aforeBuoted#ro$ision, no forei'n "or#oration shall e #ermitted to transa"t usiness inthe hili##ines, as this #hrase is understood under the Cor#oration Code,unless it shall ha$e the li"ense reBuired y la%, and until it "om#lies %ith thela% in transa"tin' usiness here, it shall not e #ermitted to maintain any









suit in lo"al "ourts. ;1+< &s thus inter#reted, any forei'n "or#oration not doin'usiness in the hili##ines may maintain an a"tion in our "ourts u#on any

"ause of a"tion, #ro$ided that the su !e"t matter and the defendant are%ithin the !urisdi"tion of the "ourt. 4t is not the a sen"e of the #res"ri edli"ense ut doin' usiness in the hili##ines %ithout su"h li"ense %hi"h

de ars the forei'n "or#oration from a""ess to our "ourts. 4n other %ords,althou'h a forei'n "or#oration is %ithout li"ense to transa"t usiness in thehili##ines, it does not follo% that it has no "a#a"ity to rin' an a"tion. Su"h

li"ense is not ne"essary if it is not en'a'ed in usiness in the hili##ines. ;11<

Statutory #ro$isions in many !urisdi"tions are determinati$e of %hat"onstitutes doin' usiness or transa"tin' usiness %ithin that forum, in%hi"h "ase said #ro$isions are "ontrollin' there. 4n others %here no su"hde nition or Buali "ation is laid do%n re'ardin' a"ts or transa"tions fallin'%ithin its #ur$ie%, the Buestion rests #rimarily on fa"ts and intent. 4t is thusheld that all the "om ined a"ts of a forei'n "or#oration in the State must e"onsidered, and e$ery "ir"umstan"e is material %hi"h indi"ates a #ur#ose onthe #art of the "or#oration to en'a'e in some #art of its re'ular usiness inthe State. ;1 <

No 'eneral rule or 'o$ernin' #rin"i#les "an e laid do%n as to %hat"onstitutes doin' or en'a'in' in or transa"tin' usiness. Ea"h "ase must e

!ud'ed in the li'ht of its o%n #e"uliar en$ironmental "ir"umstan"es. ;13< hetrue tests, ho%e$er, seem to e %hether the forei'n "or#oration is"ontinuin' the ody or su stan"e of the usiness or enter#rise for %hi"h it%as or'ani-ed or %hether it has su stantially retired from it and turned ito$er to another. ;1*<

&s a 'eneral #ro#osition u#on %hi"h many authorities a'ree in #rin"i#le,su !e"t to su"h modi "ations as may e ne"essary in $ie% of the #arti"ularissue or of the terms of the statute in$ol$ed, it is re"o'ni-ed that a forei'n"or#oration is doin', transa"tin', en'a'in' in, or "arryin' on usiness in theState %hen, and ordinarily only %hen, it has entered the State y its a'entsand is there en'a'ed in "arryin' on and transa"tin' throu'h them somesu stantial #art of its ordinary or "ustomary usiness, usually "ontinuous inthe sense that it may e distin'uished from merely "asual, s#oradi", oro""asional transa"tions and isolated a"ts. ;1L<

he Cor#oration Code does not itself de ne or "ate'ori-e %hat a"ts"onstitute doin' or transa"tin' usiness in the hili##ines. uris#ruden"e has,ho%e$er, held that the term im#lies a "ontinuity of "ommer"ial dealin's andarran'ements, and "ontem#lates, to that e>tent, the #erforman"e of a"ts or%or9s or the e>er"ise of some of the fun"tions normally in"ident to or in#ro'ressi$e #rose"ution of the #ur#ose and su !e"t of its or'ani-ation. ;16<

his traditional "ase la% de nition has e$ol$ed into a statutory de nition,ha$in' een ado#ted %ith some Buali "ations in $arious #ie"es of le'islationin our !urisdi"tion.

















or instan"e, Re#u li" &"t No. L*LL ;17< #ro$ides:

SEC 4 N 1. 6e;nitions and scope o# this "ct. (1) > > >A and the #hrase doin'usiness shall in"lude soli"itin' orders, #ur"hases, ser$i"e "ontra"ts, o#enin'

oJ"es, %hether "alled liaison oJ"es or ran"hesA a##ointin' re#resentati$es

or distri utors %ho are domi"iled in the hili##ines or %ho in any "alendaryear stay in the hili##ines for a #eriod or #eriods totallin' one hundredei'hty days or moreA #arti"i#atin' in the mana'ement, su#er$ision or "ontrolof any domesti" usiness rm, entity or "or#oration in the hili##inesA andany other a"t or a"ts that im#ly a "ontinuity of "ommer"ial dealin's orarran'ements, and "ontem#late to that e>tent the #erforman"e of a"ts or%or9s, or the e>er"ise of some of the fun"tions normally in"ident to, and in#ro'ressi$e #rose"ution of, "ommer"ial 'ain or of the #ur#ose and o !e"t ofthe usiness or'ani-ation.

residential =e"ree No. 178/, ;18< in &rti"le 6L thereof, de nes doin'

usiness to in"lude soli"itin' orders, #ur"hases, ser$i"e "ontra"ts, o#enin'oJ"es, %hether "alled liaison oJ"es or ran"hesA a##ointin' re#resentati$esor distri utors %ho are domi"iled in the hili##ines or %ho in any "alendaryear stay in the hili##ines for a #eriod or #eriods totallin' one hundredei'hty days or moreA #arti"i#atin' in the mana'ement, su#er$ision or "ontrolof any domesti" usiness rm, entity or "or#oration in the hili##ines, andany other a"t or a"ts that im#ly a "ontinuity of "ommer"ial dealin's orarran'ements and "ontem#late to that e>tent the #erforman"e of a"ts or%or9s, or the e>er"ise of some of the fun"tions normally in"ident to, and in#ro'ressi$e #rose"ution of, "ommer"ial 'ain or of the #ur#ose and o !e"t of the usiness or'ani-ation.

he im#lementin' rules and re'ulations of said #residential de"ree"on"lude the enumeration of a"ts "onstitutin' doin' usiness %ith a "at"h allde nition, thus:

Se". 1('). =oin' usiness shall e any a"t or "om ination of a"tsenumerated in &rti"le 6L of the Code. 4n #arti"ular doin' usiness in"ludes:

>>> >>> >>>

(1+) &ny other a"t or a"ts %hi"h im#ly a "ontinuity of "ommer"ial dealin's orarran'ements, and "ontem#late to that e>tent the #erforman"e of a"ts or%or9s, or the e>er"ise of some of the fun"tions normally in"ident to, or in the#ro'ressi$e #rose"ution of, "ommer"ial 'ain or of the #ur#ose and o !e"t ofthe usiness or'ani-ation.

inally, Re#u li" &"t No. 7+* ;1/< em odies su"h "on"e#t in this %ise:

SEC. 3. 6e;nitions . &s used in this &"t:









>>> >>> >>>

(d) the #hrase doin' usiness shall in"lude soli"itin' orders, ser$i"e"ontra"ts, o#enin' oJ"es, %hether "alled liaison oJ"es or ran"hesAa##ointin' re#resentati$es or distri utors domi"iled in the hili##ines or %ho

in any "alendar year stay in the "ountry for a #eriod or #eriods totallin' onehundred ei'ht(y) (18+) days or moreA #arti"i#atin' in the mana'ement,su#er$ision or "ontrol of any domesti" usiness, rm, entity or "or#oration inthe hili##inesA and any other a"t or a"ts that im#ly a "ontinuity of"ommer"ial dealin's or arran'ements, and "ontem#late to that e>tent the#erforman"e of a"ts or %or9s, or the e>er"ise of some of the fun"tionsnormally in"ident to, and in #ro'ressi$e #rose"ution of, "ommer"ial 'ain or of the #ur#ose and o !e"t of the usiness or'ani-ation: Provided , ho&ever , hatthe #hrase doin' usiness shall not e deemed to in"lude mere in$estmentas a shareholder y a forei'n entity in domesti" "or#orations duly re'isteredto do usiness, and@or the e>er"ise of ri'hts as su"h in$estorsA nor ha$in' a

nominee dire"tor or oJ"er to re#resent its interests in su"h "or#orationA nora##ointin' a re#resentati$e or distri utor domi"iled in the hili##ines %hi"htransa"ts usiness in its o%n name and for its o%n a""ount.

ased on &rti"le 133 of the Cor#oration Code and 'au'ed y su"hstatutory standards, #etitioners are not arred from maintainin' the #resenta"tion. here is no sho%in' that, under our statutory or "ase la%, #etitionersare doin', transa"tin', en'a'in' in or "arryin' on usiness in the hili##inesas %ould reBuire o tention of a li"ense efore they "an see9 redress from our"ourts. No e$iden"e has een o ered to sho% that #etitioners ha$e#erformed any of the enumerated a"ts or any other s#e"i " a"t indi"ati$e of

an intention to "ondu"t or transa"t usiness in the hili##ines.&""ordin'ly, the "erti "ation issued y the Se"urities and E>"han'e

Commission ; +< statin' that its re"ords do not sho% the re'istration of #etitioner lm "om#anies either as "or#orations or #artnershi#s or that theyha$e een li"ensed to transa"t usiness in the hili##ines, %hile undenia lytrue, is of no "onseBuen"e to #etitioners ri'ht to rin' a"tion in the

hili##ines.Derily, no re"ord of su"h re'istration y #etitioners "an ee>#e"ted to e found for, as aforestated, said forei'n lm "or#orations donot transa"t or do usiness in the hili##ines and, therefore, do not need to

e li"ensed in order to ta9e re"ourse to our "ourts.

&lthou'h Se"tion 1(') of the 4m#lementin' Rules and Re'ulations of themni us 4n$estments Code lists, amon' others

(1) Soli"itin' orders, #ur"hases (sales) or ser$i"e "ontra"ts. Con"rete ands#e"i " soli"itations y a forei'n rm, or y an a'ent of su"h forei'n rm,not a"tin' inde#endently of the forei'n rm amountin' to ne'otiations or

>in' of the terms and "onditions of sales or ser$i"e "ontra"ts, re'ardless of%here the "ontra"ts are a"tually redu"ed to %ritin', shall "onstitute doin'





usiness e$en if the enter#rise has no oJ"e or >ed #la"e of usiness in thehili##ines. he arran'ements a'reed u#on as to manner, time and terms of

deli$ery of the 'oods or the transfer of title thereto is immaterial. & forei'nrm %hi"h does usiness throu'h the middlemen a"tin' in their o%n names,

su"h as indentors, "ommer"ial ro9ers or "ommission mer"hants, shall not

e deemed doin' usiness in the hili##ines. ut su"h indentors, "ommer"ialro9ers or "ommission mer"hants shall e the ones deemed to e doin'usiness in the hili##ines.

( ) &##ointin' a re#resentati$e or distri utor %ho is domi"iled in thehili##ines, unless said re#resentati$e or distri utor has an inde#endent

status, i.e., it transa"ts usiness in its name and for its o%n a""ount, and notin the name or for the a""ount of a #rin"i#al. hus, %here a forei'n rm isre#resented in the hili##ines y a #erson or lo"al "om#any %hi"h does nota"t in its name ut in the name of the forei'n rm, the latter is doin'


as a"ts "onstituti$e of doin' usiness, the fa"t that #etitioners areadmittedly "o#yri'ht o%ners or o%ners of e>"lusi$e distri ution ri'hts in the

hili##ines of motion #i"tures or lms does not "on$ert su"h o%nershi# intoan indi"ium of doin' usiness %hi"h %ould reBuire them to o tain a li"ense

efore they "an sue u#on a "ause of a"tion in lo"al "ourts.

Neither is the a##ointment of &tty. Ri"o D. =omin'o as attorney in fa"t of #etitioners, %ith e>#ress authority #ursuant to a s#e"ial #o%er of attorney, inter alia

o lay "riminal "om#laints %ith the a##ro#riate authorities and to #ro$idee$iden"e in su##ort of oth "i$il and "riminal #ro"eedin's a'ainst any #ersonor #ersons in$ol$ed in the "riminal infrin'ement of "o#yri'ht, or "on"ernin'the unauthori-ed im#ortation, du#li"ation, e>hi ition or distri ution of any"inemato'ra#hi" %or9(s) lms or $ideo "assettes of %hi"h > > > is the o%nerof "o#yri'ht or the o%ner of e>"lusi$e ri'hts of distri ution in the hili##ines#ursuant to any a'reement(s) et%een > > > and the res#e"ti$e o%ners of"o#yri'ht in su"h "inemato'ra#hi" %or9(s), to initiate and #rose"ute on

ehalf of > > > "riminal or "i$il a"tions in the hili##ines a'ainst any #ersonor #ersons unla%fully distri utin', e>hi itin', sellin' or o erin' for sale any

lms or $ideo "assettes of %hi"h > > > is the o%ner of "o#yri'ht or the o%nerof e>"lusi$e ri'hts of distri ution in the hili##ines #ursuant to anya'reement(s) et%een > > > and the res#e"ti$e o%ners of "o#yri'ht in su"h%or9s. ; 1<

tantamount to doin' usiness in the hili##ines. Fe fail to see ho%e>er"isin' ones le'al and #ro#erty ri'hts and ta9in' ste#s for the $i'ilant#rote"tion of said ri'hts, #arti"ularly the a##ointment of an attorney in fa"t,"an e deemed y and of themsel$es to e doin' usiness here.





&s a 'eneral rule, a forei'n "or#oration %ill not e re'arded as doin'usiness in the State sim#ly e"ause it enters into "ontra"ts %ith residents of

the State, %here su"h "ontra"ts are "onsummated outside the State. ; < 4nfa"t, a $ie% is ta9en that a forei'n "or#oration is not doin' usiness in thestate merely e"ause sales of its #rodu"t are made there or other usiness

furtherin' its interests is transa"ted there y an alle'ed a'ent, %hether a"or#oration or a natural #erson, %here su"h a"ti$ities are not under thedire"tion and "ontrol of the forei'n "or#oration ut are en'a'ed in y thealle'ed a'ent as an inde#endent usiness. ; 3<

4t is 'enerally held that sales made to "ustomers in the State y aninde#endent dealer %ho has #ur"hased and o tained title from the"or#oration to the #rodu"ts sold are not a doin' of usiness y the"or#oration. ; *< i9e%ise, a forei'n "or#oration %hi"h sells its #rodu"ts to#ersons styled distri utin' a'ents in the State, for distri ution y them, isnot doin' usiness in the State so as to render it su !e"t to ser$i"e of #ro"ess therein, %here the "ontra"t %ith these #ur"hasers is that they shall

uy e>"lusi$ely from the forei'n "or#oration su"h 'oods as it manufa"turesand shall sell them at trade #ri"es esta lished y it. ; L<

4t has moreo$er een held that the a"t of a forei'n "or#oration inen'a'in' an attorney to re#resent it in a ederal "ourt sittin' in a #arti"ularState is not doin' usiness %ithin the s"o#e of the minimum "onta"t test.; 6< Fith mu"h more reason should this do"trine a##ly to the mere retainer of &tty. =omin'o for le'al #rote"tion a'ainst "ontin'ent a"ts of intelle"tual#ira"y.

4n a""ordan"e %ith the rule that doin' usiness im#orts only a"ts infurtheran"e of the #ur#oses for %hi"h a forei'n "or#oration %as or'ani-ed, itis held that the mere institution and #rose"ution or defense of a suit,#arti"ularly if the transa"tion %hi"h is the asis of the suit too9 #la"e out of the State, do not amount to the doin' of usiness in the State. he institutionof a suit or the remo$al thereof is neither the ma9in' of a "ontra"t nor thedoin' of usiness %ithin a "onstitutional #ro$ision #la"in' forei'n"or#orations li"ensed to do usiness in the State under the same re'ulations,limitations and lia ilities %ith res#e"t to su"h a"ts as domesti""or#orations. 2erely en'a'in' in liti'ation has een "onsidered as not asuJ"ient minimum "onta"t to %arrant the e>er"ise of !urisdi"tion o$er aforei'n "or#oration. ; 7<

&s a "onsideration aside, %e ha$e #erfor"e to "omment on #ri$ateres#ondents asis for ar'uin' that #etitioners are arred from maintainin'suit in the hili##ines. or alle'edly ein' forei'n "or#orations doin'

usiness in the hili##ines %ithout a li"ense, #ri$ate res#ondents re#eatedlymaintain in all their #leadin's that #etitioners ha$e there y no le:al

personality to rin' an a"tion efore hili##ine "ourts. ; 8<

















&mon' the 'rounds for a motion to dismiss under the Rules of Court arela"9 of le'al "a#a"ity to sue ; /< and that the "om#laint states no "ause of a"tion. ;3+< a"9 of le'al "a#a"ity to sue means that the #lainti is not in thee>er"ise of his "i$il ri'hts, or does not ha$e the ne"essary Buali "ation toa##ear in the "ase, or does not ha$e the "hara"ter or re#resentation he

"laims.;31<

n the other hand, a "ase is dismissi le for la"9 of #ersonality tosue u#on #roof that the #lainti is not the real #arty in interest, hen"e'rounded on failure to state a "ause of a"tion. ;3 < he term la"9 of "a#a"ity tosue should not e "onfused %ith the term la"9 of #ersonality to sue. Fhilethe former refers to a #lainti s 'eneral disa ility to sue, su"h as on a""ountof minority, insanity, in"om#eten"e, la"9 of !uridi"al #ersonality or any other'eneral disBuali "ations of a #arty, the latter refers to the fa"t that the#lainti is not the real #arty in interest. Corres#ondin'ly, the rst "an e a'round for a motion to dismiss ased on the 'round of la"9 of le'al "a#a"ityto sueA ;33< %hereas the se"ond "an e used as a 'round for a motion todismiss ased on the fa"t that the "om#laint, on the fa"e thereof, e$idently

states no "ause of a"tion.;3*<

&##lyin' the a o$e dis"ussion to the instant #etition, the 'rounda$aila le for arrin' re"ourse to our "ourts y an unli"ensed forei'n"or#oration doin' or transa"tin' usiness in the hili##ines should #ro#erly

e la"9 of "a#a"ity to sue, not la"9 of #ersonality to sue. Certainly, a"or#oration %hose le'al ri'hts ha$e een $iolated is undenia ly su"h, if notthe only, real #arty in interest to rin' suit thereon althou'h, for failure to"om#ly %ith the li"ensin' reBuirement, it is not "a#a"itated to maintain anysuit efore our "ourts.

astly, on this #oint, %e reiterate this Courts re!e"tion of the "ommon

#ro"edural ta"ti"s of errin' lo"al "om#anies %hi"h, %hen sued y unli"ensedforei'n "or#orations not en'a'ed in usiness in the hili##ines, in$o9e thelatters su##osed la"9 of "a#a"ity to sue. he do"trine of la"9 of "a#a"ity tosue ased on failure to rst a"Buire a lo"al li"ense is ased on "onsiderationsof #u li" #oli"y. 4t %as ne$er intended to fa$or nor insulate from suituns"ru#ulous esta lishments or nationals in "ase of rea"h of $alido li'ations or $iolations of le'al ri'hts of unsus#e"tin' forei'n rms orentities sim#ly e"ause they are not li"ensed to do usiness in the "ountry. ;3L<

IIFe no% #ro"eed to the main issue of the retroa"ti$e a##li"ation to the

#resent "ontro$ersy of the rulin' in 8th Century $o9 $il- Corporation vs.Court o# "ppeals, et al. , #romul'ated on &u'ust 1/, 1/88, ;36< that for thedetermination of #ro a le "ause to su##ort the issuan"e of a sear"h %arrantin "o#yri'ht infrin'ement "ases in$ol$in' $ideo'rams, the #rodu"tion of themaster ta#e for "om#arison %ith the alle'edly #irated "o#ies is ne"essary.

etitioners assert that the issuan"e of a sear"h %arrant is addressed tothe dis"retion of the "ourt su !e"t to the determination of #ro a le "ause in



















a""ordan"e %ith the #ro"edure #res"ri ed therefor under Se"tions 3 and * of Rule 1 6.&s of the time of the a##li"ation for the sear"h %arrant in Buestion,the "ontrollin' "riterion for the ndin' of #ro a le "ause %as that enun"iatedin Bur:os vs. Chie# o# Sta< ;37< statin' that:

ro a le "ause for a sear"h %arrant is de ned as su"h fa"ts and"ir"umstan"es %hi"h %ould lead a reasona ly dis"rete and #rudent man to

elie$e that an o ense has een "ommitted and that the o !e"ts sou'ht in"onne"tion %ith the o ense are in the #la"e sou'ht to e sear"hed.

&""ordin' to #etitioners, after "om#lyin' %ith %hat the la% then reBuired,the lo%er "ourt determined that there %as #ro a le "ause for the issuan"e of a sear"h %arrant, and %hi"h determination in fa"t led to the issuan"e andser$i"e on =e"em er 1*, 1/87 of Sear"h Farrant No. 87 +L3. 4t is furtherar'ued that any sear"h %arrant so issued in a""ordan"e %ith all a##li"a lele'al reBuirements is $alid, for the lo%er "ourt "ould not #ossi ly ha$e eene>#e"ted to a##ly, as the asis for a ndin' of #ro a le "ause for the

issuan"e of a sear"h %arrant in "o#yri'ht infrin'ement "ases in$ol$in'$ideo'rams, a #ronoun"ement %hi"h %as not e>istent at the time of su"hdetermination, on =e"em er 1*, 1/87, that is, the do"trine in the 8thCentury $o9 "ase that %as #romul'ated only on &u'ust 1/, 1/88, or o$erei'ht months later.

ri$ate res#ondents #redi"ta ly ar'ue in su##ort of the rulin' of theCourt of &##eals sustainin' the Buashal of the sear"h %arrant y the lo%er"ourt on the stren'th of that 8th Century $o9 rulin' %hi"h, they "laim, 'oesinto the $ery essen"e of #ro a le "ause. &t the time of the issuan"e of thesear"h %arrant in$ol$ed here, althou'h the 8th Century $o9 "ase had notyet een de"ided, Se"tion , &rti"le 444 of the Constitution and Se"tion 3, Rule1 6 of the 1/8L Rules on Criminal ro"edure em odied the #re$ailin' and'o$ernin' la% on the matter. he rulin' in 8th Century $o9 %as merely ana##li"ation of the la% on #ro a le "ause. ?en"e, they #osit that there %as nola% that %as retros#e"ti$ely a##lied, sin"e the la% had een there allalon'. o refrain from a##lyin' the 8th Century $o9 rulin', %hi"h hadsu#er$ened as a do"trine #romul'ated at the time of the resolution of #ri$ateres#ondents motion for re"onsideration see9in' the Buashal of the sear"h%arrant for failure of the trial "ourt to reBuire #resentation of the masterta#es #rior to the issuan"e of the sear"h %arrant, %ould ha$e "onstituted'ra$e a use of dis"retion. ;38<

Res#ondent "ourt u#held the retroa"ti$e a##li"ation of the 8th Century $o9 rulin' y the trial "ourt in resol$in' #etitioners motion forre"onsideration in fa$or of the Buashal of the sear"h %arrant, on thisreno$ated thesis:

&nd %hether this do"trine should a##ly retroa"ti$ely, it must e noted that inthe +th Century o> "ase, the lo%er "ourt Buashed the earlier sear"h%arrant it issued. n certiorari , the Su#reme Court aJrmed the Buashal on







the 'round amon' others that the master ta#es or "o#yri'hted lms %erenot #resented for "om#arison %ith the #ur"hased e$iden"e of the $ideota#es to determine %hether the latter is an unauthori-ed re#rodu"tion of theformer.

4f the lo%er "ourt in the Century o> "ase did not Buash the %arrant, it is ur$ie% that the Su#reme Court %ould ha$e in$alidated the %arrant !ust thesame "onsiderin' the $ery stri"t reBuirement set y the Su#reme Court forthe determination of #ro a le "ause in "o#yri'ht infrin'ement "ases asenun"iated in this +th Century o> "ase. his is so e"ause, as %as stated

y the Su#reme Court in the said "ase, the master ta#es and the #iratedta#es must e #resented for co-parison to satis#y the re4uire-ent o#

pro1a1le cause. So it 'oes a"9 to the $ery e>isten"e of #ro a le "ause. > >>;3/<

2indful as %e are of the rami "ations of the do"trine of stare decisis and

the rudiments of fair #lay, it is our "onsidered $ie% that the 8th Century $o9 rulin' "annot e retroa"ti$ely a##lied to the instant "ase to !ustify theBuashal of Sear"h Farrant No. 87 +L3. ?erein #etitioners "onsistent #ositionthat the order of the lo%er "ourt of Se#tem er L, 1/88 denyin' thereindefendants motion to lift the order of sear"h %arrant %as #ro#erly issued,there ha$in' een satisfa"tory "om#lian"e %ith the then #re$ailin' standardsunder the la% for determination of #ro a le "ause, is indeed %ell ta9en. helo%er "ourt "ould not #ossi ly ha$e e>#e"ted more e$iden"e from #etitionersin their a##li"ation for a sear"h %arrant other than %hat the la% and

!uris#ruden"e, then e9istin: and =udicially accepted , reBuired %ith res#e"t tothe ndin' of #ro a le "ause.

&rti"le * of the Ci$il Code #ro$ides that (l)a%s shall ha$e no retroa"ti$ee e"t, unless the "ontrary is #ro$ided. Correlati$ely, &rti"le 8 of the sameCode de"lares that (!)udi"ial de"isions a##lyin' the la%s or the Constitutionshall form #art of the le'al system of the hili##ines.

uris#ruden"e, in our system of 'o$ernment, "annot e "onsidered as aninde#endent sour"e of la%A it "annot "reate la%. ;*+< Fhile it is true that

!udi"ial de"isions %hi"h a##ly or inter#ret the Constitution or the la%s are#art of the le'al system of the hili##ines, still they are not la%s. udi"ialde"isions, thou'h not la%s, are nonetheless e$iden"e of %hat the la%s mean,and it is for this reason that they are #art of the le'al system of the

hili##ines. ;*1< udi"ial de"isions of the Su#reme Court assume the sameauthority as the statute itself. ;* <

4nter#retin' the aforeBuoted "orrelated #ro$isions of the Ci$il Code and inli'ht of the a o$e disBuisition, this Court em#hati"ally de"lared in Co vs.Court o# "ppeals, et al . ;*3< that the #rin"i#le of #ros#e"ti$ity a##lies not onlyto ori'inal amendatory statutes and administrati$e rulin's and "ir"ulars, ut













also, and #ro#erly so, to !udi"ial de"isions. ur holdin' in the earlier "aseof People vs. Ju1inal ;**< e"hoes the rationale for this !udi"ial de"laration, vi> .:

=e"isions of this Court, althou'h in themsel$es not la%s, are ne$erthelesse$iden"e of %hat the la%s mean, and this is the reason %hy under &rti"le 8

of the Ne% Ci$il Code, udi"ial de"isions a##lyin' or inter#retin' the la%s orthe Constitution shall form #art of the le'al system. he inter#retation u#ona la% y this Court "onstitutes, in a %ay, a #art of the la% as of the date thatthe la% %as ori'inally #assed, sin"e this Courts "onstru"tion merelyesta lishes the "ontem#oraneous le'islati$e intent that the la% thus"onstrued intends to e e"tuate. he settled rule su##orted y numerousauthorities is a restatement of the le'al ma>im le:is interpretation le:is vi-o1tinet the inter#retation #la"ed u#on the %ritten la% y a "om#etent "ourthas the for"e of la%. > > >, ut %hen a do"trine of this Court is o$erruled anda di erent $ie% is ado#ted, the ne& doctrine should 1e applied

prospectively, and should not apply to parties &ho had relied on the old

doctrine and acted on the #aith thereo# . > > >. (Stress su##lied). his %as for"efully reiterated in Spouses Ben>onan vs. Court o# "ppeals,

et al. , ;*L< %here the Court e>#ounded:

> > >. ut %hile our de"isions form #art of the la% of the land, they are alsosu !e"t to &rti"le * of the Ci$il Code %hi"h #ro$ides that la%s shall ha$e noretroa"ti$e e e"t unless the "ontrary is #ro$ided. his is e>#ressed in thefamiliar le'al ma>imum le9 prospicit, non respicit , the la% loo9s for%ard not

a"9%ard. he rationale a'ainst retroa"ti$ity is easy to #er"ei$e. heretroa"ti$e a##li"ation of a la% usually di$ests ri'hts that ha$e already

e"ome $ested or im#airs the o li'ations of "ontra"t and hen"e, isun"onstitutional ( ran"is"o v . Certe-a, 3 SCR& L6L ;1/61<). he same"onsideration underlies our rulin's 'i$in' only #ros#e"ti$e e e"t to de"isionsenun"iatin' ne%do"trines. > > >.

he reasonin' ehind Senarillos vs. 0er-osisi-a ;*6< that !udi"ialinter#retation of a statute "onstitutes #art of the la% as of the date it %asori'inally #assed, sin"e the Courts "onstru"tion merely esta lishes the"ontem#oraneous le'islati$e intent that the inter#reted la% "arried intoe e"t, is all too familiar. Su"h !udi"ial do"trine does not amount to the#assa'e of a ne% la% ut "onsists merely of a "onstru"tion or inter#retationof a #re e>istin' one, and that is #re"isely the situation o tainin' in this"ase.

4t is "onseBuently "lear that a !udi"ial inter#retation e"omes a #art of the la% as of the date that la% %as ori'inally #assed, su !e"t only to theBuali "ation that %hen a do"trine of this Court is o$erruled and a di erent$ie% is ado#ted, and more so %hen there is a re$ersal thereof, the ne%do"trine should e a##lied #ros#e"ti$ely and should not a##ly to #arties %ho









relied on the old do"trine and a"ted in 'ood faith. ;*7< o hold other%ise %oulde to de#ri$e the la% of its Buality of fairness and !usti"e then, if there is no

re"o'nition of %hat had trans#ired #rior to su"h ad!udi"ation. ;*8<

here is merit in #etitioners im#assioned and %ell foundedar'umentation:

he "ase of +th Century o> ilm Cor#oration vs. Court of &##eals, et al.,16* SCR& 6LL (&u'ust 1/, 1/88) (hereinafter +th Century o>) %asine>istent in =e"em er of 1/87 %hen Sear"h Farrant 87 +L3 %as issued ythe lo%er "ourt. ?en"e, it o''les the ima'ination ho% the lo%er "ourt "ould

e e>#e"ted to a##ly the formulation of +th Century o> in ndin' #ro a le"ause %hen the formulation %as yet non e>istent.

>>> >>> >>>

4n short, the lo%er "ourt %as "on$in"ed at that ti-e after "ondu"tin'sear"hin' e>amination Buestions of the a##li"ant and his %itnesses that ano ense had een "ommitted and that the o !e"ts sou'ht in "onne"tion %iththe o ense (%ere) in the #la"e sou'ht to e sear"hed ( ur'os v . Chief ofSta , et al., 133 SCR& 8++). 4t is indis#uta le, therefore, that at the time ofthe a##li"ation, or on =e"em er 1*, 1/87, the lo%er "ourt did not "ommitany error nor did it fail to "om#ly %ith any le'al reBuirement for the $alidissuan"e of sear"h %arrant.

> > >. (F)e elie$e that the lo%er "ourt should e "onsidered as ha$in'follo%ed the reBuirements of the la% in issuin' Sear"h Farrant No. 87+L3. he sear"h %arrant is therefore $alid and indin'. 4t must e noted thatno%here is it found in the alle'ations of the Res#ondents that the lo%er "ourtfailed to a##ly the la% as then interpreted in *+ . ?en"e, %e nd it a surdthat it is (si") should e seen other%ise, e"ause it is sim#ly im#ossi le toha$e reBuired the lo%er "ourt to a##ly a formulation %hi"h %ill only ede ned si> months later.

urthermore, it is un!ust and unfair to reBuire "om#lian"e %ith le'al and@ordo"trinal reBuirements %hi"h are ine>istent at the time they %ere su##osedto ha$e een "om#lied %ith.

>>> >>> >>>

> > >. 4f the lo%er "ourts re$ersal %ill e sustained, %hat en"oura'ement "ane 'i$en to "ourts and liti'ants to res#e"t the la% and rules if they "an

e>#e"t %ith reasona le "ertainty that u#on the #assa'e of a ne% rule, their"ondu"t "an still e o#en to BuestionW his "ertainly reeds insta ility in oursystem of dis#ensin' !usti"e. or etitioners %ho too9 s#e"ial e ort toredress their 'rie$an"es and to #rote"t their #ro#erty ri'hts y resortin' to







the remedies #ro$ided y the la%, it is most unfair that fealty to the rulesand #ro"edures then o tainin' %ould ear ut fruits of in!usti"e. ;*/<

Fithal, e$en the #ro#osition that the #ros#e"ti$ity of !udi"ial de"isionsim#orts a##li"ation thereof not only to future "ases ut also to "ases still

on'oin' or not yet nal %hen the de"ision %as #romul'ated, should not e"ountenan"ed in the !ural s#here on a""ount of its ine$ita ly unsettlin're#er"ussions. 2ore to the #oint, it is felt that the reasona leness of theadded reBuirement in 8th Century $o9 "allin' for the #rodu"tion of themaster ta#es of the "o#yri'hted lms for determination of #ro a le "ause in"o#yri'ht infrin'ement "ases needs re$isitin' and "lari "ation.

4t %ill e re"alled that the 8th Century $o9 "ase arose from sear"h%arrant #ro"eedin's in anti"i#ation of the lin' of a "ase for theunauthori-ed sale or rentin' out of "o#yri'hted lms in $ideota#e format in$iolation of residential =e"ree No. */. 4t re$ol$ed around the meanin' of #ro a le "ause %ithin the "onte>t of the "onstitutional #ro$ision a'ainstille'al sear"hes and sei-ures, as a##lied to "o#yri'ht infrin'ement "asesin$ol$in' $ideota#es.

herein it %as ruled that

he #resentation of master ta#es of the "o#yri'hted lms from %hi"h the#irated lms %ere alle'edly "o#ied, %as ne"essary for the $alidity of sear"h%arrants a'ainst those %ho ha$e in their #ossession the #irated lms. he#etitioners ar'ument to the e e"t that the #resentation of the master ta#esat the time of a##li"ation may not e ne"essary as these %ould e merelye$identiary in nature and not determinati$e of %hether or not a #ro a le

"ause e>ists to !ustify the issuan"e of the sear"h %arrants is notmeritorious. he "ourt "annot #resume that du#li"ate or "o#ied ta#es %erene"essarily re#rodu"ed from master ta#es that it o%ns.

he a##li"ation for sear"h %arrants %as dire"ted a'ainst $ideo ta#e outlets%hi"h alle'edly %ere en'a'ed in the unauthori-ed sale and rentin' out of"o#yri'hted lms elon'in' to the #etitioner #ursuant to .=. */.

he essen"e of a "o#yri'ht infrin'ement is the similarity or at leastsu stantial similarity of the #ur#orted #irated %or9s to the "o#yri'hted%or9. ?en"e, the a##li"ant must #resent to the "ourt the "o#yri'hted lms to"om#are them %ith the #ur"hased e$iden"e of the $ideo ta#es alle'edly#irated to determine %hether the latter is an unauthori-ed re#rodu"tion ofthe former. his lin9a'e of the "o#yri'hted lms to the #irated lms must eesta lished to satisfy the reBuirements of #ro a le "ause. 2ere alle'ationsas to the e>isten"e of the "o#yri'hted lms "annot ser$e as asis for theissuan"e of a sear"h %arrant.





or a "loser and more #ers#i"uous a##re"iation of the fa"tualante"edents of 8th Century $o9 , the #ertinent #ortions of the de"isiontherein are Buoted hereunder, to %it:

4n the instant "ase, the lo%er "ourt lifted the three Buestioned sear"h

%arrants a'ainst the #ri$ate res#ondents on the 'round that it a"ted on thea##li"ation for the issuan"e of the said sear"h %arrants and 'ranted it on themisre#resentations of a##li"ant N 4 and its %itnesses that infrin'ement of"o#yri'ht or a #ira"y of a #arti"ular lm ha$e een "ommitted. hus thelo%er "ourt stated in its Buestioned order dated anuary , 1/86:

&""ordin' to the mo$ant, all three %itnesses durin' the #ro"eedin's in thea##li"ation for the three sear"h %arrants testi ed of their o%n #ersonal9no%led'e. ?et, "tty. "l1ino Reyes o# the @BI stated that the counsel orrepresentative o# the &entieth Century $o9 Corporation &ill testi#y on thevideo cassettes that &ere pirated, so that he did not have personal

!no&led:e o# the alle:ed piracy. he &itness Bacani also said that the videocassettes &ere pirated &ithout statin: the -anner it &as pirated and that it&as "tty. 6o-in:o that has !no&led:e o# that #act .

n the #art of &tty. =omin'o, he said that the re ta#in' of the alle'edly#irated ta#es %as from master ta#es alle'edly elon'in' to the %entiethCentury o>, e"ause, a""ordin' to him it is of his #ersonal 9no%led'e.

&t the hearin' of the 2otion for Re"onsideration, Senior N 4 &'ent &tty.&l ino Reyes testi ed that &hen the co-plaint #or in#rin:e-ent &as 1rou:htto the @BI, the -aster tapes o# the alle:edly pirated tapes &ere sho&n to

hi- and he -ade co-parisons o# the tapes &ith those purchased 1y their-an Bacani. Why the -aster tapes or at least the ;l- reels o# the alle:edly pirated tapes &ere not sho&n to the Court durin: the application :ives so-e-is:ivin:s as to the truth o# that 1are state-ent o# the @BI a:ent on the&itness stand .

&'ain as the a##li"ation and sear"h #ro"eedin's is a #relude to the lin' of"riminal "ases under .=. */, the "o#yri'ht infrin'ement la%, and althou'h%hat is reBuired for the issuan"e thereof is merely the #resen"e of #ro a le"ause, that #ro a le "ause must e satisfa"tory to the Court, for it is a timehonored #re"e#t that #ro"eedin's to #ut a man to tas9 as an o ender underour la%s should e inter#reted in strictissi-i =uris a'ainst the 'o$ernment andli erally in fa$or of the alle'ed o ender.

>>> >>> >>>

his do"trine has ne$er een o$erturned, and as a matter of fa"t it had eenenshrined in the ill of Ri'hts in our 1/73 Constitution.



So that lac!in: in persuasive e<ect, the alle:ation that -aster tapes&ere vie&ed 1y the @BI and &ere co-pared to the purchased and sei>edvideo tapes #ro- the respondents esta1lish-ents, it should 1e dis-issed asnot supported 1y co-petent evidence and #or that -atter the pro1a1lecause hovers in that :rey de1ata1le t&ili:ht >one 1et&een 1lac! and &hite

resolva1le in #avor o# respondents herein .ut the 'larin' fa"t is that Co"oon, the rst $ideo ta#e mentioned in the

sear"h %arrant, %as not e$en duly re'istered or "o#yri'hted in thehili##ines. (&nne> C of ##osition, #. 1L , re"ord.) So that la"9in' in the

reBuisite #resentation to the Court of an alle'ed master ta#e for #ur#oses of"om#arison %ith the #ur"hased e$iden"e of the $ideo ta#es alle'edly #iratedand those sei-ed from res#ondents, there %as no %ay to determine %hetherthere really %as #ira"y, or "o#yin' of the lm of the "om#lainant %entiethCentury o>.

>>> >>> >>>he lo&er court, there#ore, li#ted the three (A) 4uestioned search &arrants in

the a1sence o# pro1a1le cause that the private respondents violated P.6.'+. "s #ound 1y the court, the @BI a:ents &ho acted as &itnesses did nothave personal !no&led:e o# the su1=ect -atter o# their testi-ony &hich &asthe alle:ed co--ission o# the o<ense 1y the private respondents . nly the#etitioners "ounsel %ho %as also a %itness durin' the a##li"ation for theissuan"e of the sear"h %arrants stated that he had #ersonal 9no%led'e thatthe "on s"ated ta#es o%ned y the #ri$ate res#ondents %ere #irated ta#esta9en from master ta#es elon'in' to the #etitioner. ?o%e$er, the lo%er

"ourt did not 'i$e mu"h "reden"e to his testimony in $ie% of the fa"t that themaster ta#es of the alle'edly #irated ta#es %ere not sho%n to the "ourtdurin' the a##li"ation (4tali"s ours).

he itali"i-ed #assa'es readily e>#ose the reason %hy the trial "ourttherein reBuired the #resentation of the master ta#es of the alle'edly #irated

lms in order to "on$in"e itself of the e>isten"e of #ro a le "ause under thefa"tual milieu #e"uliar to that "ase. 4n the "ase at ar, res#ondent a##ellate"ourt itself o ser$ed:

Fe feel that the rationale ehind the aforeBuoted do"trine is that the #irated"o#ies as %ell as the master ta#es, unli9e the other ty#es of #ersonal#ro#erties %hi"h may e sei-ed, &ere availa1le #or presentation to the courtat the ti-e o# the application #or a search &arrant to determine the e>isten"eof the lin9a'e of the "o#yri'hted lms %ith the #irated ones. hus, there isno reason not to #resent them (4tali"s su##lied for em#hasis). ;L+<

4n ne, the su##osed pronuncia-ento in said "ase re'ardin' thene"essity for the #resentation of the master ta#es of the "o#yri'hted lms





for the $alidity of sear"h %arrants should at most e understood to merelyser$e as a 'uide#ost in determinin' the e>isten"e of #ro a le "ause in"o#yri'ht infrin'ement "ases &here there is dou1t as to the true ne9us1et&een the -aster tape and the pirated copies . &n o !e"ti$e and "arefulreadin' of the de"ision in said "ase "ould lead to no other "on"lusion than

that said dire"ti$e %as hardly intended to e a s%ee#in' and inHe>i lereBuirement in all or similar "o#yri'ht infrin'ement "ases. Judicialdicta should al%ays e "onstrued %ithin the fa"tual matri> of their#arturition, other%ise a "areless inter#retation thereof "ould unfairly fault the%riter %ith the $i"e of o$erstatement and the reader %ith the falla"y of undue 'enerali-ation.

4n the "ase at ar, N 4 Senior &'ent auro C. Reyes %ho led thea##li"ation for sear"h %arrant %ith the lo%er "ourt follo%in' a formal"om#laint lod'ed y #etitioners, !ud'in' from his aJda$it ;L1< and hisde#osition, ;L < did testify on matters %ithin his #ersonal 9no%led'e ased onsaid "om#laint of #etitioners as %ell as his o%n in$esti'ation and sur$eillan"eof the #ri$ate res#ondents $ideo rental sho#. i9e%ise, &tty. Ri"o D. =omin'o,in his "a#a"ity as attorney in fa"t, stated in his aJda$it ;L3< and furthere>#ounded in his de#osition ;L*< that he #ersonally 9ne% of the fa"t that#ri$ate res#ondents had ne$er een authori-ed y his "lients to re#rodu"e,lease and #ossess for the #ur#ose of sellin' any of the "o#yri'hted lms.

oth testimonies of &'ent Reyes and &tty. =omin'o %ere "orro orated yRene C. alta-ar, a #ri$ate resear"her retained y 2otion i"tures&sso"iation of &meri"a, 4n". (2 &&, 4n".), %ho %as li9e%ise #resented as a%itness durin' the sear"h %arrant #ro"eedin's. ;LL< he re"ords "learly reHe"tthat the testimonies of the a o$enamed %itnesses %ere strai'htfor%ard and

stemmed from matters %ithin their #ersonal 9no%led'e. hey dis#layednone of the am i$alen"e and un"ertainty that the %itnesses in the 8thCentury $o9 "ase e>hi ited. his "ate'ori"al forthri'htness in theirstatements, amon' others, %as %hat initially and "orre"tly "on$in"ed thetrial "ourt to ma9e a ndin' of the e>isten"e of #ro a le "ause.

here is no ori'inality in the ar'ument of #ri$ate res#ondents a'ainst the$alidity of the sear"h %arrant, o $iously orro%ed from 8th Century $o9 ,that #etitioners %itnesses N 4 &'ent auro C. Reyes, &tty. Ri"o D. =omin'oand Rene C. alta-ar did not ha$e #ersonal 9no%led'e of the su !e"t matterof their res#e"ti$e testimonies and that said %itnesses "laim that the $ideo

ta#es %ere #irated, %ithout statin' the manner y %hi"h these %ere #irated,is a "on"lusion of fa"t %ithout asis. ;L6< he di eren"e, it must e #ointed out,is that the re"ords in the #resent "ase re$eal that (1) there is no alle'ation of misre#resentation, mu"h less a ndin' thereof y the lo%er "ourt, on the#art of #etitioners %itnessesA ( ) there is no denial on the #art of #ri$ateres#ondents that the ta#es sei-ed %ere ille'itimate "o#ies of the "o#yri'htedones nor ha$e they sho%n that they %ere 'i$en any authority y #etitionersto "o#y, sell, lease, distri ute or "ir"ulate, or at least, to o er for sale, lease,















distri ution or "ir"ulation the said $ideo ta#esA and (3) a dis"reet ute>tensi$e sur$eillan"e of the sus#e"ted area %as underta9en y #etitioners%itnesses suJ"ient to ena le them to e>e"ute trust%orthy aJda$its andde#ositions re'ardin' matters dis"o$ered in the "ourse thereof and of %hi"hthey ha$e #ersonal 9no%led'e.

4t is e$idently in"orre"t to su''est, as the rulin' in +th Century o> maya##ear to do, that in "o#yri'ht infrin'ement "ases, the #resentation of master ta#es of the "o#yri'hted lms is al%ays ne"essary to meet thereBuirement of #ro a le "ause and that, in the a sen"e thereof, there "an eno ndin' of #ro a le "ause for the issuan"e of a sear"h %arrant. 4t is truethat su"h master ta#es are o !e"t e$iden"e, %ith the merit that in this "lassof e$iden"e the as"ertainment of the "ontro$erted fa"t is made throu'hdemonstrations in$ol$in' the dire"t use of the senses of the #residin'ma'istrate. ;L7< Su"h au>iliary #ro"edure, ho%e$er, does not rule out the useof testimonial or do"umentary e$iden"e, de#ositions, admissions or other"lasses of e$iden"e tendin' to #ro$e the #actu- pro1andu- , ;L8< es#e"ially%here the #rodu"tion in "ourt of o !e"t e$iden"e %ould result in delay,in"on$enien"e or e>#enses out of #ro#ortion to its e$identiary $alue. ;L/<

f "ourse, as a 'eneral rule, "onstitutional and statutory #ro$isionsrelatin' to sear"h %arrants #rohi it their issuan"e e>"e#t on a sho%in' of #ro a le "ause, su##orted y oath or aJrmation. hese #ro$isions #re$entthe issuan"e of %arrants on loose, $a'ue, or dou tful ases of fa"t, andem#hasi-e the #ur#ose to #rote"t a'ainst all 'eneral sear"hes. ;6+< 4ndeed,&rti"le 444 of our Constitution mandates in Se". thereof that no sear"h%arrant shall issue e>"e#t u#on #ro a le "ause to e determined #ersonally

y the !ud'e after e>amination under oath or aJrmation of the "om#lainant

and the %itnesses he may #rodu"e, and #arti"ularly des"ri in' the #la"e toe sear"hed and the thin's to e sei-edA and Se". 3 thereof #ro$ides thatany e$iden"e o tained in $iolation of the #re"edin' se"tion shall einadmissi le for any #ur#ose in any #ro"eedin'.

hese "onstitutional stri"tures are im#lemented y the follo%in'#ro$isions of Rule 1 6 of the Rules of Court:

Se". 3. Re4uisites #or issuin: search &arrant . & sear"h %arrant shall not issueut u#on #ro a le "ause in "onne"tion %ith one s#e"i " o ense to e

determined #ersonally y the !ud'e after e>amination under oath or

aJrmation of the "om#lainant and the %itnesses he may #rodu"e, and#arti"ularly des"ri in' the #la"e to e sear"hed and the thin's to e sei-ed.

Se". *. 9a-ination o# co-plainant record . he !ud'e must, efore issuin'the %arrant, #ersonally e>amine in the form of sear"hin' Buestions andans%ers, in %ritin' and under oath the "om#lainant and any %itnesses hemay #rodu"e on fa"ts #ersonally 9no%n to them and atta"h to the re"ordtheir s%orn statements to'ether %ith any aJda$its su mitted.











Se". L. Issuance and #or- o# search &arrant . 4f the !ud'e is thereu#onsatis ed of the e>isten"e of fa"ts u#on %hi"h the a##li"ation is ased, or thatthere is #ro a le "ause to elie$e that they e>ist, he must issue the %arrant,%hi"h must e su stantially in the form #res"ri ed y these Rules.

he "onstitutional and statutory #ro$isions of $arious !urisdi"tionsreBuirin' a sho%in' of #ro a le "ause efore a sear"h %arrant "an e issuedare mandatory and must e "om#lied %ith, and su"h a sho%in' has eenheld to e an unBuali ed "ondition #re"edent to the issuan"e of a %arrant. &sear"h %arrant not ased on #ro a le "ause is a nullity, or is $oid, and theissuan"e thereof is, in le'al "ontem#lation, ar itrary. ;61< 4t ehoo$es us, then,to re$ie% the "on"e#t of #ro a le "ause, rstly, from re#resentati$e holdin'sin the &meri"an !urisdi"tion from %hi"h %e #atterned our do"trines on thematter.

&lthou'h the term #ro a le "ause has een said to ha$e a %ell de nedmeanin' in the la%, the term is e>"eedin'ly diJ"ult to de ne, in this "ase,%ith any de'ree of #re"isionA indeed, no de nition of it %hi"h %ould !ustifythe issuan"e of a sear"h %arrant "an e formulated %hi"h %ould "o$er e$erystate of fa"ts %hi"h mi'ht arise, and no formula or standard, or hard and fastrule, may e laid do%n %hi"h may e a##lied to the fa"ts of e$ery situation.;6 < &s to %hat a"ts "onstitute #ro a le "ause seem in"a#a le of de nition.;63< here is, of ne"essity, no e>a"t test. ;6*<

&t est, the term #ro a le "ause has een understood to mean areasona le 'round of sus#i"ion, su##orted y "ir"umstan"es suJ"ientlystron' in themsel$es to %arrant a "autious man in the elief that the #ersona""used is 'uilty of the o ense %ith %hi"h he is "har'edA ;6L< or the e>isten"e

of su"h fa"ts and "ir"umstan"es as %ould e>"ite an honest elief in areasona le mind a"tin' on all the fa"ts and "ir"umstan"es %ithin the9no%led'e of the ma'istrate that the "har'e made y the a##li"ant for the%arrant is true. ;66<

ro a le "ause does not mean a"tual and #ositi$e "ause, nor does itim#ort a solute "ertainty. he determination of the e>isten"e of #ro a le"ause is not "on"erned %ith the Buestion of %hether the o ense "har'ed has

een or is ein' "ommitted in fa"t, or %hether the a""used is 'uilty orinno"ent, ut only %hether the aJant has reasona le 'rounds for his elief.;67< he reBuirement is less than certainty or proo#, 1ut -ore than suspicion

or possi1ility .;68<

4n hili##ine !uris#ruden"e, #ro a le "ause has een uniformly de ned assu"h fa"ts and "ir"umstan"es %hi"h %ould lead a reasona le, dis"reet and#rudent man to elie$e that an o ense has een "ommitted, and that theo !e"ts sou'ht in "onne"tion %ith the o ense are in the #la"e sou'ht to esear"hed. ;6/< 4t ein' the duty of the issuin' oJ"er to issue, or refuse toissue, the %arrant as soon as #ra"ti"a le after the a##li"ation therefor is

led, ;7+< the fa"ts %arrantin' the "on"lusion of #ro a le "ause must e























assessed at the time of su"h !udi"ial determination y ne"essarily usin' le'alstandards then set #orth in la& and =urisprudence, and not those that have

yet to 1e cra#ted therea#ter .

&s already stated, the de nition of #ro a le "ause enun"iated in Bur:os,Sr. vs. Chie# o# Sta<, et al., supra, visDaDvis the #ro$isions of Se"tions 3 and *of Rule 1 6, %ere the #re$ailin' and "ontrollin' le'al standards, as they"ontinue to e, y %hi"h a ndin' of #ro a le "ause is tested. Sin"e the#ro#rietary of the issuan"e of a sear"h %arrant is to e determined at thetime of the a##li"ation therefor, %hi"h in turn must not e too remote in timefrom the o""urren"e of the o ense alle'ed to ha$e een "ommitted, theissuin' !ud'e, in determinin' the e>isten"e of #ro a le "ause, "an andshould lo'i"ally loo9 to the tou"hstones in the la%s therefore ena"ted andthe de"isions already #romul'ated at the time, and not to those %hi"h hadnot yet e$en een "on"ei$ed or formulated.

4t is %orth notin' that neither the Constitution nor the Rules of Court

attem#t to de ne #ro a le "ause, o $iously for the #ur#ose of lea$in' su"hmatter to the "ourts dis"retion %ithin the #arti"ular fa"ts of ea"h"ase. &lthou'h the Constitution #rohi its the issuan"e of a sear"h %arrant inthe a sen"e of #ro a le "ause, su"h "onstitutional inhi ition does not"ommand the le'islature to esta lish a de nition or formula for determinin'%hat shall "onstitute #ro a le "ause. ;71< hus, Con'ress, des#ite its roadauthority to fashion standards of reasona leness for sear"hes and sei-ures,;7 < does not $enture to ma9e su"h a de nition or standard formulation of #ro a le "ause, nor "ate'ori-e %hat fa"ts and "ir"umstan"es ma9e u# thesame, mu"h less limit the determination thereof to and %ithin the"ir"ums"ri#tion of a #arti"ular "lass of e$iden"e, all in deferen"e to !udi"ial

dis"retion and #ro ity. ;73<

&""ordin'ly, to restri"t the e>er"ise of dis"retion y a !ud'e y addin' a#arti"ular reBuirement (the #resentation of master ta#es, as intimated

y 8th Century $o9 ) not #ro$ided nor im#lied in the la% for a ndin' of #ro a le "ause is eyond the realm of !udi"ial "om#eten"e orstatemanshi#. 4t ser$es no #ur#ose ut to stultify and "onstri"t the !udi"iouse>er"ise of a "ourt0s #rero'ati$es and to deni'rate the !udi"ial duty of determinin' the e>isten"e of #ro a le "ause to a mere ministerial orme"hani"al fun"tion. here is, to re#eat, no la% or rule %hi"h reBuires thatthe e>isten"e of #ro a le "ause is or should e determined solely y a

s#e"i " 9ind of e$iden"e. Surely, this "ould not ha$e een "ontem#lated ythe framers of the Constitution, and %e do not elie$e that the Courtintended the statement in 8th Century $o9 re'ardin' master ta#es as thedi"tum for all seasons and reasons in infrin'ement "ases.

urnin' no% to the "ase at ar, it "an e 'leaned from the re"ords thatthe lo%er "ourt follo%ed the #res"ri ed #ro"edure for the issuan"es of asear"h %arrant: (1) the e>amination under oath or aJrmation of the"om#lainant and his %itnesses, %ith them #arti"ularly des"ri in' the #la"e to









e sear"hed and the thin's to e sei-edA ( ) an e>amination #ersonally"ondu"ted y the !ud'e in the form of sear"hin' Buestions and ans%ers, in%ritin' and under oath of the "om#lainant and %itnesses on fa"ts #ersonally9no%n to themA and, (3) the ta9in' of s%orn statements, to'ether %ith theaJda$its su mitted, %hi"h %ere duly atta"hed to the re"ords.

hereafter, the "ourt a 4uo made the follo%in' fa"tual ndin's leadin' tothe issuan"e of the sear"h %arrant no% su !e"t to this "ontro$ersy:

4n the instant "ase, the follo%in' fa"ts ha$e een esta lished: (1)"o#yri'hted $ideo ta#es earin' titles enumerated in Sear"h Farrant No. 87+L3 %ere ein' sold, leased, distri uted or "ir"ulated, or o ered for sale,lease, distri ution, or transferred or "aused to e transferred y defendantsat their $ideo outlets, %ithout the %ritten "onsent of the #ri$ate"om#lainants or their assi'neeA ( ) re"o$ered or "on s"ated fromdefendants0 #ossession %ere $ideo ta#es "ontainin' "o#yri'hted motion#i"ture lms %ithout the authority of the "om#lainantA (3) the $ideo ta#esori'inated from s#urious or unauthori-ed #ersonsA and (*) said $ideo ta#es%ere e>a"t re#rodu"tions of the lms listed in the sear"h %arrant %hose"o#yri'hts or distri ution ri'hts %ere o%ned y "om#lainants.

he asis of these fa"ts are the aJda$its and de#ositions of N 4 Senior&'ent auro C. Reyes, &tty. Ri"o D. =omin'o, and Rene C. alta-ar. 2otion

i"tures &sso"iation of &meri"a, 4n". (2 &&) thru their "ounsel, &tty. Ri"o D.=omin'o, led a "om#laint %ith the National ureau of 4n$esti'ation a'ainst"ertain $ideo esta lishments one of %hi"h is defendant, for $iolation of =No. */ as amended y = No, 1/88. &tty. auro C. Reyes led a team to"ondu"t dis"reet sur$eillan"e o#erations on said $ideo esta lishments. erinformation earlier 'athered y &tty. =omin'o, defendants %ere en'a'ed inthe ille'al sale, rental, distri ution, "ir"ulation or #u li" e>hi ition of"o#yri'hted lms of 2 && %ithout its %ritten authority or itsmem ers. Pno%in' that defendant Sunshine ?ome Dideo and its #ro#rietor,2r. =anilo elindario, %ere not authori-ed y 2 && to re#rodu"e, lease, and#ossess for the #ur#ose of sellin' any of its "o#yri'hted motion #i"tures, heinstru"ted his resear"her, 2r. Rene alta-ar to rent t%o $ideo "assettes fromsaid defendants on "to er 1, 1/87. Rene C. alta-ar #ro"eeded toSunshine ?ome Dideo and rented ta#es "ontainin' ittle Sho# of ?orror. ?e%as issued rental sli# No. 636 dated "to er 1, 1/87 for 1+.++ %ith ade#osit of 1++.++. &'ain, on =e"em er 11, 1/87, he returned to Sunshine?ome Dideo and rented Ro o"o# %ith a rental sli# No. L 71 alsofor 1+.++. n the asis of the "om#laint of 2 && thru "ounsel, &tty. auro C.Reyes #ersonally %ent to Sunshine ?ome Dideo at No. 6 2ayfair Center,2a'allanes Commer"ial Center, 2a9ati. ?is last $isit %as on =e"em er 7,1/87. here, he found the $ideo outlet rentin', leasin', distri utin' $ideo"assette ta#es %hose titles %ere "o#yri'hted and %ithout the authority of2 &&.



Gi$en these fa"ts, a #ro a le "ause e>ists. > > >. ;7*<

he lo%er "ourt su seBuently e>e"uted a volteD#ace , des#ite its #riordetailed and su stantiated ndin's, y statin' in its order of No$em er ,1/88 denyin' #etitioners motion for re"onsideration and Buashin' the sear"h

%arrant that> > >. he t%o ( ) "ases ha$e a "ommon fa"tual milieuA oth in$ol$e alle'ed#irated "o#yri'hted lms of #ri$ate "om#lainants %hi"h %ere found in the#ossession or "ontrol of the defendants. ?en"e, the ne"essity of the#resentation of the master ta#es from %hi"h the #irated lms %ere alle'edly"o#ied is ne"essary in the instant "ase, to esta lish the e>isten"e of #ro a le"ause. ;7L<

ein' ased solely on an un!usti a le and im#ro#er retroa"ti$ea##li"ation of the master ta#e reBuirement 'enerated y 8th Century

$o9 u#on a fa"tual situation "om#letely di erent from that in the "ase at ar,and %ithout anythin' more, this later order "learly de es elemental fair #layand is a 'ross re$ersi le error. 4n fa"t, this o ser$ation of the Court in %aChe-ise %acoste, S.". vs. $ernande>, et al ., supra , may !ust as easily a##lyto the #resent "ase:

& re$ie% of the 'rounds in$o9ed > > > in his motion to Buash the sear"h%arrants re$eals the fa"t that they are not a##ro#riate for Buashin' a%arrant. hey are matters of defense %hi"h should e $entilated durin' thetrial on the merits of the "ase. > > >

&s "orre"tly #ointed out y #etitioners, a lind es#ousal of the reBuisite of #resentation of the master ta#es in "o#yri'ht infrin'ement "ases, as the#rime determinant of #ro a le "ause, is too e>a"tin' and im#ra"ti"a le areBuirement to e "om#lied %ith in a sear"h %arrant a##li"ation %hi"h, itmust not e o$erloo9ed, is only an an"illary #ro"eedin'. urther, on realisti""onsiderations, a stri"t a##li"ation of said reBuirement militates a'ainst theelements of se"re"y and s#eed %hi"h underlie "o$ert in$esti'ati$e andsur$eillan"e o#erations in #oli"e enfor"ement "am#ai'ns a'ainst all forms of "riminality, "onsiderin' that the master ta#es of a motion #i"ture reBuired to

e #resented efore the "ourt "onsists of se$eral reels "ontained in "ir"ularsteel "asin's %hi"h, e"ause of their ul9, %ill de nitely dra% attention,unli9e diminuti$e o !e"ts li9e $ideo ta#es %hi"h "an e easily "on"ealed.;76< Fith hundreds of titles ein' #irated, this onerous and tedious im#osition%ould e multi#lied a hundredfold y !udi"ial at, dis"oura'in' and#re$entin' le'al re"ourses in forei'n !urisdi"tions.

Gi$en the #resent international a%areness and furor o$er $iolations inlar'e s"ale of intelle"tual #ro#erty ri'hts, "allin' for transnational san"tions,









he essen"e of intelle"tual #ira"y should e essayed in "on"e#tual termsin order to unders"ore its 'ra$ity y an a##ro#riate understandin'thereof. 4nfrin'ement of a "o#yri'ht is a tres#ass on a #ri$ate domain o%nedand o""u#ied y the o%ner of the "o#yri'ht, and, therefore, #rote"ted yla%, and infrin'ement of "o#yri'ht, or #ira"y, %hi"h is a synonymous term in

this "onne"tion, "onsists in the doin' y any #erson, %ithout the "onsent of the o%ner of the "o#yri'ht, of anythin' the sole ri'ht to do %hi"h is "onferredy statute on the o%ner of the "o#yri'ht. ;78<

& "o#y of a #ira"y is an infrin'ement of the ori'inal, and it is no defensethat the #irate, in su"h "ases, did not 9no% %hat %or9s he %as indire"tly"o#yin', or did not 9no% %hether or not he %as infrin'in' any "o#yri'htA heat least 9ne% that %hat he %as "o#yin' %as not his, and he "o#ied at his#eril. 4n determinin' the Buestion of infrin'ement, the amount of matter"o#ied from the "o#yri'hted %or9 is an im#ortant "onsideration. o"onstitute infrin'ement, it is not ne"essary that the %hole or e$en a lar'e#ortion of the %or9 shall ha$e een "o#ied. 4f so mu"h is ta9en that the $alueof the ori'inal is sensi ly diminished, or the la ors of the ori'inal author aresu stantially and to an in!urious e>tent a##ro#riated y another, that issuJ"ient in #oint of la% to "onstitute a #ira"y. ;7/< he Buestion of %hetherthere has een an a"tiona le infrin'ement of a literary, musi"al, or artisti"%or9 in motion #i"tures, radio or tele$ision ein' one of fa"t, ;8+< it should#ro#erly e determined durin' the trial. hat is the sta'e "allin' for"on"lusi$e or #re#onderatin' e$iden"e, and not the summary #ro"eedin' forthe issuan"e of a sear"h %arrant %herein oth lo%er "ourts erroneouslyreBuire the master ta#es.

4n disre'ardin' #ri$ate res#ondents ar'ument that Sear"h Farrant No.

87 +L3 is a 'eneral %arrant, the lo%er "ourt o ser$ed that it %as %orded in amanner that the enumerated sei-a le items ear dire"t relation to theo ense of $iolation of Se". L6 of = */ as amended. 4t authori-ed only thesei-ur(e) of arti"les used or intended to e used in the unla%ful sale, leaseand other un"on"erted a"ts in $iolation of = */ as amended. > > >. ;81<

n this #oint, Bache and Co., (Phil.), Inc., et al. vs. Rui>, et al ., ;8 < instru"tsand enli'htens:

& sear"h %arrant may e said to #arti"ularly des"ri e the thin's to e sei-ed%hen the des"ri#tion therein is as s#e"i " as the "ir"umstan"es %ill

ordinarily allo% ( eo#le vs. Ru io, L7 hil. 38*)A or %hen the des"ri#tione>#resses a "on"lusion of fa"t not of la% y %hi"h the %arrant oJ"er may e'uided in ma9in' the sear"h and sei-ure ( ide- ., dissent of & ad Santos, J.,)Aor %hen the thin's des"ri ed are limited to those %hi"h ear dire"t relationto the o ense for %hi"h the %arrant is ein' issued (Se". , Rule 1 6,Re$ised Rules of Court). > > >. 4f the arti"les desired to e sei-ed ha$e anydire"t relation to an o ense "ommitted, the a##li"ant must ne"essarily ha$esome e$iden"e, other than those arti"les, to #ro$e the said o enseA and the













arti"les su !e"t of sear"h and sei-ure should "ome in handymerely to stren'then su"h e$iden"e. > > >.

n #ri$ate res#ondents a$erment that the sear"h %arrant %as madea##li"a le to more than one s#e"i " o ense on the 'round that there are as

many o enses of infrin'ement as there are ri'hts #rote"ted and, therefore,to issue one sear"h %arrant for all the mo$ie titles alle'edly #irated $iolatesthe rule that a sear"h %arrant must e issued only in "onne"tion %ith ones#e"i " o ense, the lo%er "ourt said:

> > >. &s the fa"e of the sear"h %arrant itself indi"ates, it %as issued for$iolation of Se"tion L6, = */ as amended only. he s#e"i "ations therein (in&nne> &) merely refer to the titles of the "o#yri'hted motion #i"tures@ lms

elon'in' to #ri$ate "om#lainants %hi"h defendants %ere in"ontrol@#ossession for sale, lease, distri ution or #u li" e>hi ition in"ontra$ention of Se". L6, = */ as amended. ;83<

hat there %ere se$eral "ounts of the o ense of "o#yri'ht infrin'ement andthe sear"h %arrant un"o$ered se$eral "ontra and items in the form of #irated $ideo ta#es is not to e "onfused %ith the num er of o enses"har'ed. he sear"h %arrant herein issued does not $iolate the one s#e"i "o ense rule.

4t is #ointless for #ri$ate res#ondents to insist on "om#lian"e %ith there'istration and de#osit reBuirements under residential =e"ree No. */ as#rereBuisites for in$o9in' the "ourts #rote"ti$e mantle in "o#yri'htinfrin'ement "ases. &s e>#lained y the "ourt elo%:

=efendants mo$ants "ontend that = */ as amended "o$ers only #rodu"ers%ho ha$e "om#lied %ith the reBuirements of de#osit and noti"e (in other%ords re'istration) under Se"tions */ and L+ thereof. & sent su"hre'istration, as in this "ase, there %as no ri'ht "reated, hen"e, noinfrin'ement under = */ as amended. his is not %ell ta9en.

&s "orre"tly #ointed out y #ri$ate "om#lainants o##ositors, the =e#artmentof usti"e has resol$ed this le'al Buestion as far a"9 as =e"em er 1 , 1/78in its #inion No. 1/1 of the then Se"retary of usti"e Di"ente & ad Santos%hi"h stated that Se"tions 6 and L+ do not a##ly to "inemato'ra#hi" %or9sand = No. */ had done a%ay %ith the re'istration and de#osit of"inemato'ra#hi" %or9s and that e$en %ithout #rior re'istration and de#ositof a %or9 %hi"h may e entitled to #rote"tion under the =e"ree, the "reator"an le a"tion for infrin'ement of its ri'hts. ?e "annot demand, ho%e$er,#ayment of dama'es arisin' from infrin'ement. he same o#inion stressedthat the reBuirements of re'istration and de#osit are thus retained under the=e"ree, not as "onditions for the a"Buisition of "o#yri'ht and other ri'hts,





ut as #rereBuisites to a suit for dama'es. he statutory inter#retation of theE>e"uti$e ran"h ein' "orre"t, is entitled (to) %ei'ht and res#e"t.

>>> >>> >>>

=efendants mo$ants maintain that "om#lainant and his %itnesses led theCourt to elie$e that a "rime e>isted %hen in fa"t there %as none. his is%ron'. &s earlier dis"ussed, = */ as amended, does not reBuire re'istrationand de#osit for a "reator to e a le to le an a"tion for infrin'ement of hisri'hts. hese "onditions are merely #re reBuisites to an a"tion fordama'es. So, as lon' as the #ros"ri ed a"ts are sho%n to e>ist, an a"tion forinfrin'ement may e initiated. ;8*<

&""ordin'ly, the "erti "ations ;8L< from the Co#yri'ht Se"tion of the Nationali rary, #resented as e$iden"e y #ri$ate res#ondents to sho% non

re'istration of some of the lms of #etitioners, assume no e$identiary %ei'ht

or si'ni "an"e, %hatsoe$er.urthermore, a "loser re$ie% of residential =e"ree No. */ re$eals that

e$en %ith res#e"t to %or9s %hi"h are reBuired under Se"tion 6 thereof to ere'istered and %ith "o#ies to e de#osited %ith the National i rary, su"h as

oo9s, in"ludin' "om#osite and "y"lo#edi" %or9s, manus"ri#ts, dire"toriesand 'a-etteersA and #eriodi"als, in"ludin' #am#hlets and ne%s#a#ersAle"tures, sermons, addresses, dissertations #re#ared for oral deli$eryA andletters, the failure to "om#ly %ith said reBuirements does not de#ri$e the"o#yri'ht o%ner of the ri'ht to sue for infrin'ement. Su"h non "om#lian"emerely limits the remedies a$aila le to him and su !e"ts him to the"orres#ondin' san"tion.

he reason for this is e>#ressed in Se"tion of the de"ree %hi"h #refa"esits enumeration of "o#yri'hta le %or9s %ith the e>#li"it statement that theri'hts 'ranted under this =e"ree shall, from the moment of "reation, su sist%ith res#e"t to any of the follo%in' "lasses of %or9s. his means that underthe #resent state of the la%, the "o#yri'ht for a %or9 is a"Buired y anintelle"tual "reator from the moment of "reation e$en in the a sen"e of re'istration and de#osit. &s has een authoritati$ely "lari ed:

he re'istration and de#osit of t%o "om#lete "o#ies or re#rodu"tions of the%or9 %ith the National i rary %ithin three %ee9s after the rst #u li"dissemination or #erforman"e of the %or9, as #ro$ided for in Se"tion 6 ( .=.No. */, as amended), is not for the #ur#ose of se"urin' a "o#yri'ht of the%or9, ut rather to a$oid the #enalty for non "om#lian"e of the de#osit ofsaid t%o "o#ies and in order to re"o$er dama'es in an infrin'ement suit. ;86<

ne distressin' o ser$ation. his "ase has een fou'ht on the asis of,and its resolution lon' delayed y resort to, te"hni"alities to a $irtuallya usi$e e>tent y #ri$ate res#ondents, %ithout so mu"h as an attem#t to









addu"e any "redi le e$iden"e sho%in' that they "ondu"t their usinessle'itimately and fairly. he fa"t that #ri$ate res#ondents "ould not sho%#roof of their authority or that there %as "onsent from the "o#yri'ht o%nersfor them to sell, lease, distri ute or "ir"ulate #etitioners "o#yri'hted lmsimmeasura ly olsters the lo%er "ourts initial ndin' of #ro a le "ause. hat

#ri$ate res#ondents are li"ensed y the Dideo'ram Re'ulatory oard doesnot insulate them from "riminal and "i$il lia ility for their unla%ful usiness#ra"ti"es. Fhat is more de#lora le is that the re#rehensi le a"ts of someuns"ru#ulous "hara"ters ha$e sti'mati-ed the hili##ines %ith an unsa$oryre#utation as a hu for intelle"tual #ira"y in this #art of the 'lo e, formerly inthe re"ords of the General &'reement on ari s and rade and, no%, of theForld rade r'ani-ation. Su"h a"ts must not e 'lossed o$er ut should edenoun"ed and re#ressed lest the hili##ines e"ome an international #ariahin the 'lo al intelle"tual "ommunity.

H R 8!R , the assailed !ud'ment and resolution of res#ondent Courtof &##eals, and ne"essarily in"lusi$e of the order of the lo%er "ourt datedNo$em er , 1/88, are here y REDERSE= and SE &S4=E . he order of the"ourt a 4uo of Se#tem er L, 1/88 u#holdin' the $alidity of Sear"h FarrantNo. 87 +L3 is here y RE4NS & E=, and said "ourt is =4REC E= to ta9e ande>#editiously #ro"eed %ith su"h a##ro#riate #ro"eedin's as may e "alledfor in this "ase. re le "osts are further assessed a'ainst #ri$ateres#ondents.

S! !RD R D.@arvasa, C.J., Padilla, 6avide, Jr., Ro-ero, Melo, Puno, 2itu:, apunan,

Mendo>a, $rancisco, 0er-osisi-a, Jr., Pan:ani1an, and orres, Jr., JJ., "on"ur .Bellosillo, J., no #art in deli erations.

[G.R. No. 131522. /4 1-, 1---]

ACITA I. HABANA, A9ICIA 9. CINC! a%& ! ITA N.8 RNAND!, petitioners, vs. 8 9ICIDAD C. R!B9 S a%&G!!D I99 TRADING C!., INC., respondents.

D C I S I ! NARD!, J .>

he "ase efore us is a #etition for re$ie% on certiorari ;1< to set aside the(a) de"ision of the Court of &##eals ; <, and ( ) the resolution denyin'

http://sc.judiciary.gov.ph/jurisprudence/1999/jul99/131522.htm#_edn1






#etitioners motion for re"onsideration, ;3< in %hi"h the a##ellate "ourt aJrmedthe trial "ourts dismissal of the "om#laint for infrin'ement and@or unfair"om#etition and dama'es ut deleted the a%ard for attorneys fees.

he fa"ts are as follo%s:

etitioners are authors and "o#yri'ht o%ners of duly issued "erti "ates of "o#yri'ht re'istration "o$erin' their #u lished %or9s, #rodu"ed throu'h their"om ined resour"es and e orts, entitled C EGE ENG 4S? R =&I (CEfor re$ity), oo9s 1 and , and F RP P R C EGE RES?2&NENG 4S?, Series 1.

Res#ondent eli"idad Ro les and Good%ill radin' Co., 4n". are theauthor@#u lisher and distri utor@seller of another #u lished %or9 entitled=EDE 4NG ENG 4S? R 4C4ENCI (=E for re$ity), oo9s 1 and (1/8Ledition) %hi"h oo9 %as "o$ered y "o#yri'hts issued to them.

4n the "ourse of re$isin' their #u lished %or9s, #etitioners s"outed and

loo9ed around $arious oo9stores to "he"9 on other te>t oo9s dealin' %iththe same su !e"t matter. y "han"e they "ame u#on the oo9 of res#ondentRo les and u#on #erusal of said oo9 they %ere sur#rised to see that the

oo9 %as stri9in'ly similar to the "ontents, s"heme of #resentation,illustrations and illustrati$e e>am#les in their o%n oo9, CE .

&fter an itemi-ed e>amination and "om#arison of the t%o oo9s (CE and=E ), #etitioners found that se$eral #a'es of the res#ondents oo9 aresimilar, if not all to'ether a "o#y of #etitioners oo9, %hi"h is a "ase of #la'iarism and "o#yri'ht infrin'ement.

etitioners then made demands for dama'es a'ainst res#ondents andalso demanded that they "ease and desist from further sellin' anddistri utin' to the 'eneral #u li" the infrin'ed "o#ies of res#ondent Ro les%or9s.

?o%e$er, res#ondents i'nored the demands, hen"e, on uly 7, 1/88,#etitioners led %ith the Re'ional rial Court, 2a9ati, a "om#laint for4nfrin'ement and@or unfair "om#etition %ith dama'es ;*< a'ainst #ri$ateres#ondents. ;L<

4n the "om#laint, #etitioners alle'ed that in 1/8L, res#ondent eli"idad C.Ro les ein' su stantially familiar %ith the "ontents of #etitioners %or9s,and %ithout se"urin' their #ermission, lifted, "o#ied, #la'iari-ed and@ortrans#osed "ertain #ortions of their oo9 CE . he te>tual "ontents andillustrations of CE %ere literally re#rodu"ed in the oo9 =E . he #la'iarism,in"or#oration and re#rodu"tion of #arti"ular #ortions of the oo9 CE in the

oo9 =E , %ithout the authority or "onsent of #etitioners, and themisre#resentations of res#ondent Ro les that the same %as her ori'inal %or9and "on"e#t ad$ersely a e"ted and su stantially diminished the sale of the#etitioners oo9 and "aused them a"tual dama'es y %ay of unreali-edin"ome.









=es#ite the demands of the #etitioners for res#ondents to desist from"ommittin' further a"ts of infrin'ement and for res#ondent to re"all =Efrom the mar9et, res#ondents refused. etitioners as9ed the "ourt to orderthe su mission of all "o#ies of the oo9 =E , to'ether %ith the molds, #latesand lms and other materials used in its #rintin' destroyed, and for

res#ondents to render an a""ountin' of the #ro"eeds of all sales and #ro tssin"e the time of its #u li"ation and sale.

Res#ondent Ro les %as im#leaded in the suit e"ause she authored anddire"tly "ommitted the a"ts of infrin'ement "om#lained of, %hile res#ondentGood%ill radin' Co., 4n". %as im#leaded as the #u lisher and !oint "o o%nerof the "o#yri'ht "erti "ates of re'istration "o$erin' the t%o oo9s authoredand "aused to e #u lished y res#ondent Ro les %ith o $ious "onni$an"e%ith one another.

n uly 7, 1/88, res#ondent Ro les led a motion for a ill of #arti"ulars ;6< %hi"h the trial "ourt a##ro$ed on &u'ust 17, 1/88. etitioners

"om#lied %ith the desired #arti"ulari-ation, and furnished res#ondent Ro lesthe s#e"i " #ortions, in"lusi$e of #a'es and lines, of the #u lished and"o#yri'hted oo9s of the #etitioners %hi"h %ere trans#osed, lifted, "o#iedand #la'iari-ed and@or other%ise found their %ay into res#ondents oo9.

n &u'ust 1, 1/88, res#ondent Good%ill radin' Co., 4n". led its ans%erto the "om#laint ;7< and alle'ed that #etitioners had no "ause of a"tion a'ainstGood%ill radin' Co., 4n". sin"e it %as not #ri$y to the misre#resentation,#la'iarism, in"or#oration and re#rodu"tion of the #ortions of the oo9 of #etitionersA that there %as an a'reement et%een Good%ill and theres#ondent Ro les that Ro les 'uaranteed Good%ill that the materialsutili-ed in the manus"ri#t %ere her o%n or that she had se"ured thene"essary #ermission from "ontri utors and sour"esA that the authorassumed sole res#onsi ility and held the #u lisher %ithout any lia ility.

n No$em er 8, 1/88, res#ondent Ro les led her ans%er ;8<, and deniedthe alle'ations of #la'iarism and "o#yin' that #etitioners"laimed. Res#ondent stressed that (1) the oo9 =E is the #rodu"t of herinde#endent resear"hes, studies and e>#erien"es, and %as not a "o#y of anye>istin' $alid "o#yri'hted oo9A ( ) =E follo%ed the s"o#e and seBuen"e orsylla us %hi"h are "ommon to all En'lish 'rammar %riters as re"ommended

y the &sso"iation of hili##ine Colle'es of &rts and S"ien"es (& C&S), soany similarity et%een the res#ondents oo9 and that of the #etitioners %asdue to the orientation of the authors to oth %or9s and standards andsylla usA and (3) the similarities may e due to the authors e>er"ise of theri'ht to fair use of "o#yri'thed materials, as 'uides.

Res#ondent inter#osed a "ounter"laim for dama'es on the 'round thatad faith and mali"e attended the lin' of the "om#laint, e"ause #etitioner

?a ana %as #rofessionally !ealous and the oo9 =E re#la"ed CE as the









oJ"ial te>t oo9 of the 'raduate studies de#artment of the ar EasternKni$ersity. ;/<

=urin' the #re trial "onferen"e, the #arties a'reed to a sti#ulation of fa"ts ;1+< and for the trial "ourt to rst resol$e the issue of infrin'ement eforedis#osin' of the "laim for dama'es.

&fter the trial on the merits, on &#ril 3, 1//3, the trial "ourt rendered its !ud'ment ndin' thus:

H R 8!R , #remises "onsidered, the "ourt here y orders that the"om#laint led a'ainst defendants eli"idad Ro les and Good%ill radin' Co.,4n". shall e =4S24SSE=A that said #lainti s solidarily reim urse defendantRo les for +,+++.++ attorneys fees and defendant Good%ill for L,+++.++attorneys fees. lainti s are lia le for "ost of suit.

IT IS S! !RD R D .

=one in the City of 2anila this 3rd day of &#ril, 1//3.

(s@t) 2&RD4E R. & R&?&2 S4NGS N&ssistin' ud'eS. C. &dm. rder No. 1 * / ;11<

n 2ay 1*, 1//3, #etitioners led their noti"e of a##eal %ith the trial"ourt ;1 <, and on uly 1/, 1//3, the "ourt dire"ted its ran"h "ler9 of "ourt tofor%ard all the re"ords of the "ase to the Court of &##eals. ;13<

4n the a##eal, #etitioners ar'ued that the trial "ourt "om#letelydisre'arded their e$iden"e and fully su s"ri ed to the ar'uments of res#ondent Ro les that the oo9s in issue %ere #urely the #rodu"t of herresear"hes and studies and that the "o#ied #ortions %ere ins#ired y forei'nauthors and as su"h not su !e"t to "o#yri'ht. etitioners also assailed the

ndin's of the trial "ourt that they %ere animated y ad faith in institutin'the "om#laint. ;1*<

n une 7, 1//7, the Court of &##eals rendered !ud'ment in fa$or of res#ondents Ro les and Good%ill radin' Co., 4n". he rele$ant #ortions of the de"ision state:

4t must e noted, ho%e$er, that similarity of the alle'edly infrin'ed %or9 tothe authors or #ro#rietors "o#yri'hted %or9 does not of itself esta lish"o#yri'ht infrin'ement, es#e"ially if the similarity results from the fa"t that

oth %or9s deal %ith the same su !e"t or ha$e the same "ommon sour"e, asin this "ase.

&##ellee Ro les has fully e>#lained that the #ortion or material of the oo9"laimed y a##ellants to ha$e een "o#ied or lifted from forei'n oo9s. She















has duly #ro$en that most of the to#i"s or materials "ontained in her oo9,%ith #arti"ular referen"e to those matters "laimed y a##ellants to ha$e

een #la'iari-ed %ere to#i"s or matters a##earin' not only in a##ellants andher oo9s ut also in earlier oo9s on Colle'e En'lish, in"ludin' forei'n

oo9s, e.i. Edmund ur9es S#ee"h on Con"iliation, oeri's Com#eten"e in

En'lish and rou'htons, Edmund ur9es Colle"tion.> > >

&##ellants relian"e on the last #ara'ra#h on Se"tion 11 is mis#la"ed. 4t muste em#hasi-ed that they failed to #ro$e that their oo9s %ere made sour"esy a##ellee. ;1L<

he Court of &##eals %as of the $ie% that the a%ard of attorneys fees%as not #ro#er, sin"e there %as no ad faith on the #art of #etitioners?a ana et al. in institutin' the a"tion a'ainst res#ondents.

n uly 1 , 1//7, #etitioners led a motion for re"onsideration,;16< ho%e$er, the Court of &##eals denied the same in a Resolution ;17< datedNo$em er L, 1//7.

?en"e, this #etition.

4n this a##eal, #etitioners su mit that the a##ellate "ourt erred inaJrmin' the trial "ourts de"ision.

etitioners raised the follo%in' issues: (1) %hether or not, des#ite thea##arent te>tual, themati" and seBuential similarity et%een =E and CE ,res#ondents "ommitted no "o#yri'ht infrin'ementA ( ) %hether or not there

%as ani-us #urandi on the #art of res#ondent %hen they refused to %ithdra%the "o#ies of CE from the mar9et des#ite noti"e to %ithdra% the sameA and(3) %hether or not res#ondent Ro les a used a %riters ri'ht to fair use, in$iolation of Se"tion 11 of residential =e"ree No. */. ;18<

Fe nd the #etition im#ressed %ith merit.

he "om#laint for "o#yri'ht infrin'ement %as led at the time thatresidential =e"ree No. */ %as in for"e. &t #resent, all la%s dealin' %ith the

#rote"tion of intelle"tual #ro#erty ri'hts ha$e een "onsolidated and as thela% no% stands, the #rote"tion of "o#yri'hts is 'o$erned y Re#u li" &"t No.8 /3. Not%ithstandin' the "han'e in the la%, the same #rin"i#les arereiterated in the ne% la% under Se"tion 177. 4t #ro$ides for the "o#y ore"onomi" ri'hts of an o%ner of a "o#yri'ht as follo%s:

Se".177. Co#y or E"onomi" ri'hts.Su !e"t to the #ro$isions of "ha#ter D444,"o#yri'ht or e"onomi" ri'hts shall "onsist of the e>"lusi$e ri'ht to "arry out,authori-e or #re$ent the follo%in' a"ts:

22. &eproduction of the or3 or su"stantia$ portion of the or34











177. =ramati-ation, translation, ada#tation, a rid'ement, arran'ement orother transformation of the %or9A

177.3 he rst #u li" distri ution of the ori'inal and ea"h "o#y of the %or9y sale or other forms of transfer of o%nershi#A

177.* Rental of the ori'inal or a "o#y of an audio$isual or "inemato'ra#hi"%or9, a %or9 em odied in a sound re"ordin', a "om#uter #ro'ram, a"om#ilation of data and other materials or a musi"al %or9 in 'ra#hi" form,irres#e"ti$e of the o%nershi# of the ori'inal or the "o#y %hi"h is the su !e"tof the rentalA (n)

177.L u li" dis#lay of the ori'inal or "o#y of the %or9A

177.6 u li" #erforman"e of the %or9A and

177.7 ther "ommuni"ation to the #u li" of the %or9;1/<

he la% also #ro$ided for the limitations on "o#yri'ht, thus:

Se". 18*.1 imitations on "o#yri'ht. Not%ithstandin' the #ro$isions ofCha#ter D, the follo%in' a"ts shall not "onstitute infrin'ement of "o#yri'ht:

(a) the re"itation or #erforman"e of a %or9, on"e it has een la%fullymade a""essi le to the #u li", if done #ri$ately and free of "har'eor if made stri"tly for a "harita le or reli'ious institution or so"ietyA;Se". 1+(1), .=. No. */<

( ) he ma9in' of Buotations from a #u lished %or9 if they are"om#ati le %ith fair use and only to the e>tent !usti ed for the#ur#ose, in"ludin' Buotations from ne%s#a#er arti"les and#eriodi"als in the form of #ress summariesA ro$ided, that thesour"e and the name of the author, if a##earin' on the %or9 arementionedA (Se". 11 third #ar. .=.*/)

> > > > > > > > > > > >

(e) The inc$usion of a or3 in a pu"$ication , road"ast, or other"ommuni"ation to the #u li", sound re"ordin' of lm, if su"h

in"lusion is made y %ay of illustration for tea"hin' #ur#oses and is"om#ati le %ith fair use: #rovided, That the source and thename of the author, if appearing in the or3 is mentioned4; +<

4n the a o$e Buoted #ro$isions, %or9 has referen"e to literary and artisti""reations and this in"ludes oo9s and other literary, s"holarly and s"ienti "%or9s. ; 1<









4n determinin' the Buestion of infrin'ement, the amount of matter "o#iedfrom the "o#yri'hted %or9 is an im#ortant "onsideration. o "onstituteinfrin'ement, it is not ne"essary that the %hole or e$en a lar'e #ortion of the%or9 shall ha$e een "o#ied. 4f so mu"h is ta9en that the $alue of theori'inal is sensi ly diminished, or the la ors of the ori'inal author are

su stantially and to an in!urious e>tent a##ro#riated y another, that issuJ"ient in #oint of la% to "onstitute #ira"y. ; 8<

he essen"e of intelle"tual #ira"y should e essayed in "on"e#tual termsin order to unders"ore its 'ra$ity y an a##ro#riate understandin'thereof. 4nfrin'ement of a "o#yri'ht is a tres#ass on a #ri$ate domain o%nedand o""u#ied y the o%ner of the "o#yri'ht, and, therefore, #rote"ted yla%, and infrin'ement of "o#yri'ht, or #ira"y, %hi"h is a synonymous term inthis "onne"tion, "onsists in the doin' y any #erson, %ithout the "onsent of the o%ner of the "o#yri'ht, of anythin' the sole ri'ht to do %hi"h is "onferred

y statute on the o%ner of the "o#yri'ht. ; /<

he res#ondents "laim that the "o#ied #ortions of the oo9 CE are alsofound in forei'n oo9s and other 'rammar oo9s, and that the similarityet%een her style and that of #etitioners "an not e a$oided sin"e they

"ome from the same a"9'round and orientation may e true. ?o%e$er, inthis !urisdi"tion under Se" 18* of Re#u li" &"t 8 /3 it is #ro$ided that:

imitations on Co#yri'ht. Not%ithstandin' the #ro$isions of Cha#ter D,the follo%in' shall not "onstitute infrin'ement of "o#yri'ht:

> > > > > > > > > > > >

c/ he ma9in' of Buotations from a #u lished %or9 if they are"om#ati le %ith fair use and only to the e>tent !usti ed for the#ur#ose, in"ludin' Buotations from ne%s#a#er arti"les and#eriodi"als in the form of #ress summaries : #rovided, That thesource and the name of the author, if appearing on the

or3, are mentioned.

& "o#y of a #ira"y is an infrin'ement of the ori'inal, and it is no defensethat the #irate, in su"h "ases, did not 9no% %hether or not he %as infrin'in'any "o#yri'htA he at least 9ne% that %hat he %as "o#yin' %as not his, andhe "o#ied at his #eril. ;3+<

he ne>t Buestion to resol$e is to %hat e>tent "an "o#yin' e in!urious to

the author of the oo9 ein' "o#ied. 4s it enou'h that there are similarities insome se"tions of the oo9s or lar'e se'ments of the oo9s are the sameW

4n the "ase at ar, there is no Buestion that #etitioners #resented se$eral#a'es of the oo9s CE and =E that more or less had the same "ontents. 4tmay e "orre"t that the oo9s ein' 'rammar oo9s may "ontain materialssimilar as to some te"hni"al "ontents %ith other 'rammar oo9s, su"h as these'ment a out the &uthor Card. ?o%e$er, the numerous #a'es that the#etitioners #resented sho%in' similarity in the style and the manner the









oo9s %ere #resented and the identi"al e>am#les "an not #ass as similaritiesmerely e"ause of te"hni"al "onsideration.

he res#ondents "laim that their similarity in style "an e attri uted tothe fa"t that oth of them %ere e>#osed to the & C&S sylla us and theirres#e"ti$e a"ademi" e>#erien"e, tea"hin' a##roa"h and methodolo'y arealmost identi"al e"ause they %ere of the same a"9'round.

?o%e$er, %e elie$e that e$en if #etitioners and res#ondent Ro les %ereof the same a"9'round in terms of tea"hin' e>#erien"e and orientation, it isnot an e>"use for them to e identi"al e$en in e>am#les "ontained in their

oo9s. he similarities in e>am#les and material "ontents are so o $iously#resent in this "ase. ?o% "an similar@identi"al e>am#les not e "onsidered asa mar9 of "o#yin'W

Fe "onsider as an indicia of 'uilt or %ron'doin' the a"t of res#ondentRo les of #ullin' out from Good%ill oo9stores the oo9 =E u#on learnin' of #etitioners "om#laint %hile #harisai"ally denyin' #etitioners demand. 4t %asfurther noted that %hen the oo9 =E %as re issued as a re$ised $ersion, allthe #a'es "ited y #etitioners to "ontain #ortion of their oo9 Colle'e En'lishfor oday %ere eliminated.

4n "ases of infrin'ement, "o#yin' alone is not %hat is #rohi ited. he"o#yin' must #rodu"e an in!urious e e"t. ?ere, the in!ury "onsists in thatres#ondent Ro les lifted from #etitioners oo9 materials that %ere the resultof the latters resear"h %or9 and "om#ilation and misre#resented them as hero%n. She "ir"ulated the oo9 =E for "ommer"ial use and did nota"9no%led'e #etitioners as her sour"e.

?en"e, there is a "lear "ase of a##ro#riation of "o#yri'hted %or9 for herene t that res#ondent Ro les "ommitted. etitioners %or9 as authors is the

#rodu"t of their lon' and assiduous resear"h and for another to re#resent itas her o%n is in!ury enou'h. 4n "o#yri'htin' oo9s the #ur#ose is to 'i$e#rote"tion to the intelle"tual #rodu"t of an author. his is #re"isely %hat thela% on "o#yri'ht #rote"ted, under Se"tion 18*.1 ( ). Quotations from a#u lished %or9 if they are "om#ati le %ith fair use and only to the e>tent

!usti ed y the #ur#ose, in"ludin' Buotations from ne%s#a#er arti"les and#eriodi"als in the form of #ress summaries are allo%ed #ro$ided that thesour"e and the name of the author, if a##earin' on the %or9, are mentioned.

4n the "ase at ar, the least that res#ondent Ro les "ould ha$e done %asto a"9no%led'e #etitioners ?a ana et. al. as the sour"e of the #ortions of =E . he nal #rodu"t of an authors toil is her oo9. o allo% another to "o#ythe oo9 %ithout a##ro#riate a"9no%led'ment is in!ury enou'h.

H R 8!R , the #etition is here y GR&N E=. he de"ision andresolution of the Court of &##eals in C& G. R. CD No. **+L3 are SE&S4=E. he "ase is ordered remanded to the trial "ourt for further#ro"eedin's to re"ei$e e$iden"e of the #arties to as"ertain the dama'es



"aused and sustained y #etitioners and to render de"ision in a""ordan"e%ith the e$iden"e su mitted to it.

S! !RD R D.apunan, and ?naresDSantia:o, JJ., "on"ur.

6avide , Jr., C.J., (Chair-an), #ls. see dissentin' o#inion.Melo, J., no #art. ersonal reasons.

G.R. No. 1612-5 /%" 2-, 2005

SSI G. CHING, #etitioner,$s.

I99IAM M. SA9INAS, SR., I99IAM M. SA9INAS, R., !S HIN 9.

SA9INAS, NNI8 R Y. SA9INAS, A9!NT! S!9AIMAN SA99 , !HNRIC I. SA9INAS, N! 9 M. YABUT :Boar& o D#r"c'or$ a%& !Kc"r$ oI9A AR R!DUCT C!R !RATI!N;, res#ondents.

= E C 4 S 4 N

CA99 !, SR., J.:

his #etition for re$ie% on certiorari assails the =e"ision 1 and Resolution ofthe Court of &##eals (C&) in C& G.R. S No. 7+*11 aJrmin' the anuary 3,

++ and e ruary 1*, ++ rders 3 of the Re'ional rial Court (R C) of

2anila, ran"h 1, %hi"h Buashed and set aside Sear"h Farrant Nos. +1 *+1and +1 *+ 'ranted in fa$or of #etitioner essie G. Chin'.

essie G. Chin' is the o%ner and 'eneral mana'er of eshi"ris 2anufa"turin'Co., the ma9er and manufa"turer of a Ktility 2odel, des"ri ed as 5 eaf S#rin'Eye ushin' for &utomo ile5 made u# of #lasti".

n Se#tem er *, ++1, Chin' and ose#h Iu %ere issued y the Nationali rary Certi "ates of Co#yri'ht Re'istration and =e#osit of the said %or9

des"ri ed therein as 5 eaf S#rin' Eye ushin' for &utomo ile.5 *

n Se#tem er +, ++1, Chin' reBuested the National ureau of4n$esti'ation (N 4) for #oli"e@in$esti'ati$e assistan"e for the a##rehensionand #rose"ution of ille'al manufa"turers, #rodu"ers and@or distri utors of the%or9s. L

&fter due in$esti'ation, the N 4 led a##li"ations for sear"h %arrants in theR C of 2anila a'ainst Filliam Salinas, Sr. and the oJ"ers and mem ers ofthe oard of =ire"tors of Fila%are rodu"t Cor#oration. 4t %as alle'ed that

http://sc.judiciary.gov.ph/jurisprudence/1999/jul99/131522_jdavide.htm

http://www.lawphil.net/judjuris/juri2005/jun2005/gr_161295_2005.html#fnt1





http://sc.judiciary.gov.ph/jurisprudence/1999/jul99/131522_jdavide.htm








the res#ondents therein re#rodu"ed and distri uted the said models#enali-ed under Se"tions 177.1 and 177.3 of Re#u li" &"t (R.&.) No. 8 /3.

he a##li"ations sou'ht the sei-ure of the follo%in':

a.) Kndetermined Buantity of eaf s#rin' eye ushin' for automo ile

that are made u# of #lasti" #oly#ro#yleneA.) Kndetermined Buantity of eaf s#rin' eye ushin' for automo ile

that are made u# of #oly$inyl "hloride #lasti"A

".) Kndetermined Buantity of Dehi"le earin' "ushion that is made u#of #oly$inyl "hloride #lasti"A

d.) Kndetermined Buantity of =ies and !i's, #atterns and Has9s used inthe manufa"ture@fa ri"ation of items a to dA

e.) E$iden"es of sale %hi"h in"lude deli$ery re"ei#ts, in$oi"es andoJ"ial re"ei#ts. 6

he R C 'ranted the a##li"ation and issued Sear"h Farrant Nos. +1 *+1and +1 *+ for the sei-ure of the afore"ited arti"les. 7 4n the in$entorysu mitted y the N 4 a'ent, it a##ears that the follo%in' arti"les@items %eresei-ed ased on the sear"h %arrants:

eaf S#rin' eye ushin'

a) lasti" oly#ro#ylene

C1/+ 7 \

C *+ rear *+ \

C *+ front *1 \ &G 1

) oly$inyl Chloride lasti"

C1/+ 13 \

") Dehi"le earin' "ushion

"enter earin' "ushion 11 \

udder for C1/+ mold 8 \

=iesel 2old







a) 2old for s#rin' eye ushin' rear 1 set

) 2old for s#rin' eye ushin' front 1 set

") 2old for s#rin' eye ushin' for C1/+ 1 set

d) 2old for C *+ rear 1 #ie"e of the set

e) 2old for s#rin' eye ushin' for 3++ sets

f) 2old for leaf s#rin' eye ushin' C1/+ %ith metal 1 set

') 2old for $ehi"le earin' "ushion 1 set 8

he res#ondents led a motion to Buash the sear"h %arrants on the follo%in''rounds:

. he "o#yri'ht re'istrations %ere issued in $iolation of the 4ntelle"tualro#erty Code on the 'round that:

a) the su !e"t matter of the re'istrations are not artisti" or literaryA

) the su !e"t matter of the re'istrations are s#are #arts ofautomo iles meanin' V there ( sic ) are ori'inal #arts that they aredesi'ned to re#la"e. ?en"e, they are not ori'inal. /

he res#ondents a$erred that the %or9s "o$ered y the "erti "ates issued y

the National i rary are not artisti" in natureA they are "onsideredautomoti$e s#are #arts and #ertain to te"hnolo'y. hey a$er that the modelsare not ori'inal, and as su"h are the #ro#er su !e"t of a #atent, not"o#yri'ht. 1+

4n o##osin' the motion, the #etitioner a$erred that the "ourt %hi"h issuedthe sear"h %arrants %as not the #ro#er forum in %hi"h to arti"ulate the issueof the $alidity of the "o#yri'hts issued to him. Citin' the rulin' of the CourtinMalaloan v. Court o# "ppeals ,11 the #etitioner stated that a sear"h %arrantis merely a !udi"ial #ro"ess desi'ned y the Rules of Court in anti"i#ation of a"riminal "ase. Kntil his "o#yri'ht %as nulli ed in a #ro#er #ro"eedin', heen!oys ri'hts of a re'istered o%ner@holder thereof.

n anuary 3, ++ , the trial "ourt issued an rder 1 'rantin' the motion, andBuashed the sear"h %arrant on its ndin' that there %as no #ro a le "ausefor its issuan"e. he "ourt ruled that the %or9 "o$ered y the "erti "atesissued to the #etitioner #ertained to solutions to te"hni"al #ro lems, notliterary and artisti" as #ro$ided in &rti"le 17 of the 4ntelle"tual ro#ertyCode.













?is motion for re"onsideration of the order ha$in' een denied y the trial"ourt s rder of e ruary 1*, ++ , the #etitioner led a #etitionfor certiorari in the C&, "ontendin' that the R C had no !urisdi"tion to del$einto and resol$e the $alidity of the "o#yri'ht "erti "ates issued to him y theNational i rary. ?e insisted that his %or9s are "o$ered y Se"tions 17 .1

and 17 . of the 4ntelle"tual ro#erty Code. he #etitioner a$erred that the"o#yri'ht "erti "ates are pri-a #acie e$iden"e of its $alidity, "itin' the rulin'of the Knited States Court of &##eals in Wildli#e 9press Corporation v. CarolWri:ht Sales, Inc. 13 he #etitioner asserted that the res#ondents failed toaddu"e e$iden"e to su##ort their motion to Buash the sear"h %arrants. he#etitioner noted that res#ondent Filliam Salinas, r. %as not ein' honest, ashe %as a le to se"ure a similar "o#yri'ht re'istration of a similar #rodu"tfrom the National i rary on anuary 1*, ++ .

n Se#tem er 6, ++3, the C& rendered !ud'ment dismissin' the #etitionon its ndin' that the R C did not "ommit any 'ra$e a use of its dis"retion in

issuin' the assailed order, to %it:4t is settled that #reliminarily, there must e a ndin' that a s#e"i " o ensemust ha$e een "ommitted to !ustify the issuan"e of a sear"h %arrant. 4n anum er of "ases de"ided y the Su#reme Court, the same is e>#li"itly#ro$ided, thus:

5 he #ro a le "ause must e in "onne"tion %ith one s#e"i " o ense, and the !ud'e must, efore issuin' the %arrant, #ersonally e>amine in the form ofsear"hin' Buestions and ans%ers, in %ritin' and under oath, the "om#lainantand any %itness he may #rodu"e, on fa"ts #ersonally 9no%n to them and

atta"h to the re"ord their s%orn statements to'ether %ith any aJda$itsu mitted.

54n the determination of #ro a le "ause, the "ourt must ne"essarily resol$e%hether or not an o ense e>ists to !ustify the issuan"e or Buashal of thesear"h %arrant.5

4n the instant "ase, the #etitioner is #rayin' for the reinstatement of thesear"h %arrants issued, ut su seBuently Buashed, for the o enseof 2iolation o# Class 6esi:nation o# Copyri:hta1le Wor!s under Section * .*in relation to Section * .A o# Repu1lic "ct +A , %hen the o !e"ts su !e"t of the same, are #atently not "o#yri'hta le.

4t is %orthy to state that the %or9s #rote"ted under the a% on Co#yri'htare: literary or artisti" %or9s (Se". 17 ) and deri$ati$e %or9s (Se". 173). he

eaf S#rin' Eye ushin' and Dehi"le earin' Cushion fall on neither"lassi "ation. &""ordin'ly, if, in the rst #la"e, the item su !e"t of the#etition is not entitled to e #rote"ted y the la% on "o#yri'ht, ho% "anthere e any $iolationW 1*







he #etitioner s motion for re"onsideration of the said de"ision su ered thesame fate. he #etitioner forth%ith led the #resent #etition for re$ie%on certiorari , "ontendin' that the re$o"ation of his "o#yri'ht "erti "atesshould e raised in a dire"t a"tion and not in a sear"h %arrant #ro"eedin'.

he #etitioner #osits that e$en assumin' e9 ar:u-enti that the trial "ourtmay resol$e the $alidity of his "o#yri'ht in a #ro"eedin' to Buash a sear"h%arrant for alle'edly infrin'in' items, the R C "ommitted a 'ra$e a use ofits dis"retion %hen it de"lared that his %or9s are not "o#yri'hta le in the rst#la"e. ?e "laims that R.&. No. 8 /3, other%ise 9no%n as the 4ntelle"tual

ro#erty Code of the hili##ines, %hi"h too9 e e"t on anuary 1, 1//8,#ro$ides in no un"ertain terms that "o#yri'ht #rote"tion automati"allyatta"hes to a %or9 y the sole fa"t of its "reation, irres#e"ti$e of its mode orform of e>#ression, as %ell as of its "ontent, Buality or #ur#ose. 1L he la%'i$es a non in"lusi$e de nition of 5%or95 as referrin' to ori'inal intelle"tual"reations in the literary and artisti" domain #rote"ted from the moment of

their "reationA and in"ludes ori'inal ornamental desi'ns or -odels #orarticles o# -anu#acture , %hether or not re'istra le as an industrial desi'nand other %or9s of a##lied art under Se"tion 17 .1(h) of R.&. No.8 /3. la&phil.net

&s su"h, the #etitioner insists, not%ithstandin' the "lassi "ation of the %or9sas either literary and@or artisti", the said la%, li9e%ise, en"om#asses %or9s%hi"h may ha$e a earin' on the utility as#e"t to %hi"h the #etitioner sutility desi'ns %ere "lassi ed. 2oreo$er, a""ordin' to the #etitioner, %hatthe Co#yri'ht a% #rote"ts is the author s intelle"tual "reation, re'ardless of%hether it is one %ith utilitarian fun"tions or in"or#orated in a useful arti"le

#rodu"ed on an industrial s"ale.

he #etitioner also maintains that the la% does not #ro$ide that the intendeduse or use in industry of an arti"le eli'i le for #atent ars or in$alidates itsre'istration under the a% on Co#yri'ht. he test of #rote"tion for theaestheti" is not eauty and utility, ut art for the "o#yri'ht and in$ention ofori'inal and ornamental desi'n for desi'n #atents. 16 4n li9e manner, the fa"tthat his utility desi'ns or models for arti"les of manufa"ture ha$e eene>#ressed in the eld of automoti$e #arts, or ased on somethin' already inthe #u li" domain does not automati"ally remo$e them from the #rote"tionof the a% on Co#yri'ht. 17

he #etitioner faults the C& for i'norin' Se"tion 18 of R.&. No. 8 /3 %hi"h'i$es the same #resum#tion to an aJda$it e>e"uted y an author %ho"laims "o#yri'ht o%nershi# of his %or9.

he #etitioner adds that a ndin' of #ro a le "ause to !ustify the issuan"e ofa sear"h %arrant means merely a reasona le sus#i"ion of the "ommission ofthe o ense. 4t is not eBui$alent to a solute "ertainty or a ndin' of a"tual









and #ositi$e "ause. 18 ?e assists that the determination of #ro a le "ausedoes not "on"ern the issue of %hether or not the alle'ed %or9 is"o#yri'hta le. ?e maintains that to !ustify a ndin' of #ro a le "ause in theissuan"e of a sear"h %arrant, it is enou'h that there e>ists a reasona lesus#i"ion of the "ommission of the o ense.

he #etitioner "ontends that he has in his fa$or the ene t of the#resum#tion that his "o#yri'ht is $alidA hen"e, the urden of o$erturnin' this#resum#tion is on the alle'ed infrin'ers, the res#ondents herein. ut this

urden "annot e "arried in a hearin' on a #ro"eedin' to Buash the sear"h%arrants, as the issue therein is %hether there %as #ro a le "ause for theissuan"e of the sear"h %arrant. he #etitioner "on"ludes that the issue of#ro a le "ause should e resol$ed %ithout in$alidatin' his "o#yri'ht.

4n their "omment on the #etition, the res#ondents a$er that the %or9 of the#etitioner is essentially a te"hni"al solution to the #ro lem of %ear and tear

in automo iles, the su stitution of materials, i.e. , from ru er to #lasti"matter of #oly$inyl "hloride, an oil resistant soft te>ture #lasti" materialstron' enou'h to endure #ressure rou'ht a out y the $i ration of the"ounter earin' and thus rin's ushin's. Su"h %or9, the res#ondentsassert, is the su !e"t of "o#yri'ht under Se"tion 17 .1 of R.&. No. 8 /3. heres#ondents #osit that a te"hni"al solution in any eld of human a"ti$ity%hi"h is no$el may e the su !e"t of a #atent, and not of a "o#yri'ht. heyinsist that the "erti "ates issued y the National i rary are only"erti "ations that, at a #oint in time, a "ertain %or9 %as de#osited in the saidoJ"e. urthermore, the re'istration of "o#yri'hts does not #ro$ide forautomati" #rote"tion. Citin' Se"tion 18. ( ) of R.&. No. 8 /3, the

res#ondents a$er that no "o#yri'ht is said to e>ist if a #arty "ate'ori"allyBuestions its e>isten"e and le'ality. 2oreo$er, under Se"tion , Rule 7 of the4m#lementin' Rules of R.&. No. 8 /3, the re'istration and de#osit of %or9 isnot "on"lusi$e as to "o#yri'ht outlay or the time of "o#yri'ht or the ri'ht ofthe "o#yri'ht o%ner. he res#ondents maintain that a "o#yri'ht e>ists only%hen the %or9 is "o$ered y the #rote"tion of R.&. No. 8 /3.

he #etition has no merit.

he R C had !urisdi"tion to del$e into and resol$e the issue %hether the#etitioner s utility models are "o#yri'hta le and, if so, %hether he is theo%ner of a "o#yri'ht o$er the said models. 4t ears stressin' that u#on the

lin' of the a##li"ation for sear"h %arrant, the R C %as duty ound todetermine %hether #ro a le "ause e>isted, in a""ordan"e %ith Se"tion *,Rule 1 6 of the Rules of Criminal ro"edure:

SEC. *. Re4uisite #or issuin: search &arrant. V & sear"h %arrant shall notissue ut u#on #ro a le "ause in "onne"tion %ith one s#e"i " o ense to edetermined #ersonally y the !ud'e after e>amination under oath or





aJrmation of the "om#lainant and the %itnesses he may #rodu"e, and,#arti"ularly, des"ri in' the #la"e to e sear"hed and the thin's to e sei-ed.

4n Solid rian:le Sales Corporation v. he Sheri< o# R C EC, Br. +A ,1/ theCourt held that in the determination of #ro a le "ause, the "ourt must

ne"essarily resol$e %hether or not an o ense e>ists to !ustify the issuan"e of a sear"h %arrant or the Buashal of one already issued y the "ourt. 4ndeed,#ro a le "ause is deemed to e>ist only %here fa"ts and "ir"umstan"es e>ist%hi"h "ould lead a reasona ly "autious and #rudent man to elie$e that ano ense has een "ommitted or is ein' "ommitted. esides, in Se"tion 3,Rule 1 6 of the Rules of Criminal ro"edure, a sear"h %arrant may e issuedfor the sear"h and sei-ure of #ersonal #ro#erty (a) su !e"t of the o enseA ( )stolen or em e--led and other #ro"eeds or fruits of the o enseA or (") usedor intended to e used as the means of "ommittin' an o ense.

he R C is mandated under the Constitution and Rules of Criminal ro"edure

to determine #ro a le "ause. he "ourt "annot a di"ate its "onstitutionalo li'ation y refusin' to determine %hether an o ense has een"ommitted. + he a sen"e of #ro a le "ause %ill "ause the outri'htnulli "ation of the sear"h %arrant. 1

or the R C to determine %hether the "rime for infrin'ement under R.&. No.8 /3 as alle'ed in an a##li"ation is "ommitted, the #etitioner a##li"ant %as

urdened to #ro$e that (a) res#ondents essie Chin' and ose#h Iu %ere theo%ners of "o#yri'hted materialA and ( ) the "o#yri'hted material %as ein'"o#ied and distri uted y the res#ondents. hus, the o%nershi# of a $alid"o#yri'ht is essential.

%nershi# of "o#yri'hted material is sho%n y #roof of ori'inality and"o#yri'hta ility. y ori'inality is meant that the material %as not "o#ied, ande$iden"es at least minimal "reati$ityA that it %as inde#endently "reated ythe author and that it #ossesses at least same minimal de'ree of"reati$ity. 3 Co#yin' is sho%n y #roof of a""ess to "o#yri'hted material andsu stantial similarity et%een the t%o %or9s. * he a##li"ant must thusdemonstrate the e>isten"e and the $alidity of his "o#yri'ht e"ause in thea sen"e of "o#yri'ht #rote"tion, e$en ori'inal "reation may e freely"o#ied. L

y reBuestin' the N 4 to in$esti'ate and, if feasi le, le an a##li"ation for asear"h %arrant for infrin'ement under R.&. No. 8 /3 a'ainst theres#ondents, the #etitioner there y authori-ed the R C (in resol$in' thea##li"ation), to del$e into and determine the $alidity of the "o#yri'ht %hi"hhe "laimed he had o$er the utility models. he #etitioner "annot see9 relieffrom the R C ased on his "laim that he %as the "o#yri'ht o%ner o$er theutility models and, at the same time, re#udiate the "ourt s !urisdi"tion to

http://www.lawphil.net/judjuris/juri2001/nov2001/gr_144309_2001.html








http://www.lawphil.net/judjuris/juri2001/nov2001/gr_144309_2001.html










as"ertain the $alidity of his "laim %ithout runnin' afoul to the do"trine ofesto##el.

o dis"har'e his urden, the a##li"ant may #resent the "erti "ate ofre'istration "o$erin' the %or9 or, in its a sen"e, other e$iden"e. 6 &

"o#yri'ht "erti "ate #ro$ides pri-a #acie e$iden"e of ori'inality %hi"h is oneelement of "o#yri'ht $alidity. 4t "onstitutes pri-a #acie e$iden"e of oth$alidity and o%nershi# 7 and the $alidity of the fa"ts stated in the"erti "ate. 8 he #resum#tion of $alidity to a "erti "ate of "o#yri'htre'istration merely orders the urden of #roof. he a##li"ant should notordinarily e for"ed, in the rst instan"e, to #ro$e all the multi#le fa"ts thatunderline the $alidity of the "o#yri'ht unless the res#ondent, e e"ti$ely"hallen'in' them, shifts the urden of doin' so to the a##li"ant. / 4ndeed,Se"tion 18. of R.&. No. 8 /3 #ro$ides:

18. . 4n an a"tion under this Cha#ter:

(a) Co#yri'ht shall e #resumed to su sist in the %or9 or other su !e"tmatter to %hi"h the a"tion relates if the defendant does not #ut inissue the Buestion %hether "o#yri'ht su sists in the %or9 or othersu !e"t matterA and

( ) Fhere the su sisten"e of the "o#yri'ht is esta lished, the #laintishall e #resumed to e the o%ner of the "o#yri'ht if he "laims to ethe o%ner of the "o#yri'ht and the defendant does not #ut in issue theBuestion of his o%nershi#.

& "erti "ate of re'istration "reates no re utta le #resum#tion of "o#yri'ht$alidity %here other e$iden"e in the re"ord "asts dou t on the Buestion. 4nsu"h a "ase, $alidity %ill not e #resumed. 3+

o dis"har'e his urden of #ro a le "ause for the issuan"e of a sear"h%arrant for $iolation of R.&. No. 8 /3, the #etitioner a##li"ant su mitted tothe R C Certi "ate of Co#yri'ht Re'istration Nos. ++1 1/7 and ++1 +*dated Se#tem er 3, ++1 and Se#tem er *, ++1, res#e"ti$ely, issued ythe National i rary "o$erin' %or9 identi ed as eaf S#rin' Eye ushin' for&utomo ile and Dehi"le earin' Cushion oth "lassi ed under Se"tion17 .1(h) of R.&. No. 8 /3, to %it:

SEC. 17 . %iterary and "rtistic Wor!s. V 17 .1. iterary and artisti" %or9s,hereinafter referred to as 5%or9s,5 are ori'inal intelle"tual "reations in theliterary and artisti" domain #rote"ted from the moment of their "reation andshall in"lude in #arti"ular:

...













(h) ri'inal ornamental desi'ns or models for arti"les of manufa"ture,%hether or not re'istra le as an industrial desi'n, and other %or9s of a##liedart.

Related to the #ro$ision is Se"tion 171.1+, %hi"h #ro$ides that a 5%or9 of

a##lied art5 is an artisti" "reation %ith utilitarian fun"tions or in"or#orated ina useful arti"le, %hether made y hand or #rodu"ed on an industrial s"ale.

ut, as 'leaned from the s#e"i "ations a##ended to the a##li"ation for a"o#yri'ht "erti "ate led y the #etitioner, the said eaf S#rin' Eye ushin'for &utomo ile is merely a utility model des"ri ed as "om#risin' a 'enerally"ylindri"al ody ha$in' a "o a>ial ore that is "entrally lo"ated and #ro$ided%ith a #er#endi"ular Han'e on one of its ends and a "ylindri"al metal !a"9etsurroundin' the #eri#heral %alls of said ody, %ith the ushin' made of#lasti" that is either #oly$inyl "hloride or #oly#ro#ylene. 31 i9e%ise, theDehi"le earin' Cushion is illustrated as a earin' "ushion "om#risin' a

'enerally semi "ir"ular ody ha$in' a "entral hole to se"ure a "on$entionalearin' and a #lurality of rid'es #ro$ided therefore, %ith said "ushionearin' ein' made of the same #lasti" materials. 3 lainly, these are not

literary or artisti" %or9s. hey are not intelle"tual "reations in the literaryand artisti" domain, or %or9s of a##lied art. hey are "ertainly notornamental desi'ns or one ha$in' de"orati$e Buality or $alue.

4t ears stressin' that the fo"us of "o#yri'ht is the usefulness of the artisti"desi'n, and not its mar9eta ility. he "entral inBuiry is %hether the arti"le isa %or9 of art. 33 For9s for a##lied art in"lude all ori'inal #i"torials, 'ra#hi"s,and s"ul#tural %or9s that are intended to e or ha$e een em odied in

useful arti"le re'ardless of fa"tors su"h as mass #rodu"tion, "ommer"iale>#loitation, and the #otential a$aila ility of desi'n #atent #rote"tion. 3*

&s 'leaned from the des"ri#tion of the models and their o !e"ti$es, thesearti"les are useful arti"les %hi"h are de ned as one ha$in' an intrinsi"utilitarian fun"tion that is not merely to #ortray the a##earan"e of the arti"leor to "on$ey information. 4ndeed, %hile %or9s of a##lied art, ori'inalintelle"tual, literary and artisti" %or9s are "o#yri'hta le, useful arti"les and%or9s of industrial desi'n are not. 3L & useful arti"le may e "o#yri'hta leonly if and only to the e>tent that su"h desi'n in"or#orates #i"torial, 'ra#hi",or s"ul#tural features that "an e identi ed se#arately from, and are "a#a leof e>istin' inde#endently of the utilitarian as#e"ts of the arti"le.

Fe a'ree %ith the "ontention of the #etitioner ("itin' Se"tion 171.1+ of R.&.No. 8 /3), that the author s intelle"tual "reation, re'ardless of %hether it is a"reation %ith utilitarian fun"tions or in"or#orated in a useful arti"le #rodu"edon an industrial s"ale, is #rote"ted y "o#yri'ht la%. ?o%e$er, the la% refersto a 5%or9 of a##lied art %hi"h is an artisti" "reation.5 4t ears stressin' thatthere is no "o#yri'ht #rote"tion for %or9s of a##lied art or industrial desi'n













%hi"h ha$e aestheti" or artisti" features that "annot e identi ed se#aratelyfrom the utilitarian as#e"ts of the arti"le. 36 un"tional "om#onents of usefularti"les, no matter ho% artisti"ally desi'ned, ha$e 'enerally een denied"o#yri'ht #rote"tion unless they are se#ara le from the useful arti"le. 37

4n this "ase, the #etitioner s models are not %or9s of a##lied art, nor artisti"%or9s. hey are utility models, useful arti"les, al eit %ith no artisti" desi'n or$alue. hus, the #etitioner des"ri ed the utility model as follo%s:

E& S R4NG EIE KS?4NG R &K 2 4 E

Pno%n ushin's inserted to leaf s#rin' eye to hold leaf s#rin's of automo ileare made of hard ru er. hese ru er ushin's after a time, u#onsu !e"tin' them to so mu"h or intermittent #ressure %ould e$entually %ore(sic ) out that %ould "ause the %o lin' of the leaf s#rin'.

he #rimary o !e"t of this utility model, therefore, is to #ro$ide a leaf s#rin'eye ushin' for automo ile that is made u# of #lasti".

&nother o !e"t of this utility model is to #ro$ide a leaf s#rin' eye ushin' forautomo iles made of #oly$inyl "hloride, an oil resistant soft te>ture #lasti" or#oly#ro#ylene, a hard #lasti", yet oth "auses "ushion to the leaf s#rin', yetstron' enou'h to endure #ressure rou'ht a out y the u# and do%nmo$ement of said leaf s#rin'.

Iet, an o !e"t of this utility model is to #ro$ide a leaf s#rin' eye ushin' forautomo iles that has a mu"h lon'er life s#an than the ru er ushin's.

Still an o !e"t of this utility model is to #ro$ide a leaf s#rin' eye ushin' forautomo iles that has a $ery sim#le "onstru"tion and "an e made usin'sim#le and ordinary moldin' eBui#ment.

& further o !e"t of this utility model is to #ro$ide a leaf s#rin' eye ushin'for automo ile that is su##lied %ith a metal !a"9et to reinfor"e the #lasti" eye

ushin' %hen in en'a'ed %ith the steel material of the leaf s#rin'.

hese and other o !e"ts and ad$anta'es %ill "ome to $ie% and eunderstood u#on a readin' of the detailed des"ri#tion %hen ta9en in"on!un"tion %ith the a""om#anyin' dra%in's.

i'ure 1 is an e>#loded #ers#e"ti$e of a leaf s#rin' eye ushin' a""ordin' tothe #resent utility modelA

i'ure is a se"tional $ie% ta9en alon' line of i'. 1A







i'ure 3 is a lon'itudinal se"tional $ie% of another em odiment of this utilitymodelA

i'ure * is a #ers#e"ti$e $ie% of a third em odimentA and

i'ure L is a se"tional $ie% thereof.Referrin' no% to the se$eral $ie%s of the dra%in's %herein li9e referen"enumerals desi'nated same #arts throu'hout, there is sho%n a utility modelfor a leaf s#rin' eye ushin' for automo ile 'enerally desi'nated asreferen"e numeral 1+.

Said leaf s#rin' eye ushin' 1+ "om#rises a 'enerally "ylindri"al ody 11ha$in' a "o a>ial ore 1 "entrally #ro$ided thereof.

&s sho%n in i's. 1 and , said leaf s#rin' eye ushin' 1+ is #ro$ided %ith a

#er#endi"ular Han'e 13 on one of its ends and a "ylindri"al metal !a"9et 1*surroundin' the #eri#heral %alls 1L of said ody 11. Fhen said leaf s#rin'ushin' 1+ is installed, the metal !a"9et 1* a"ts %ith the leaf s#rin' eye (not

sho%n), %hi"h is also made of steel or "ast steel. 4n e e"t, the ushin' 1+%ill not e dire"tly in "onta"t %ith steel, ut rather the metal !a"9et, ma9in'the life of the ushin' 1+ lon'er than those %ithout the metal !a"9et.

4n i'ure , the ushin' 1+ as sho%n is made of #lasti", #refera ly #oly$inyl"hloride, an oil resistant soft te>ture #lasti" or a hard #oly#ro#ylene #lasti",

oth are "a#a le to endure the #ressure a##lied thereto, and, in e e"t,%ould len'then the life and re#la"ement therefor.

i'ure 3, on the other hand, sho%s the %alls 16 of the "o a>ial ore 1 ofsaid ushin' 1+ is inserta ly #ro$ided %ith a steel tu e 17 to reinfor"e theinner #ortion thereof. his steel tu e 17 a""ommodates or en'a'es %ith theleaf s#rin' olt (not sho%n) "onne"tin' the leaf s#rin' and the automo ile s"hassis.

i'ures * and L sho% another em odiment %herein the leaf eye ushin' 1+is elon'ated and "ylindri"al as to its "onstru"tion. Said another em odimentis also made of #oly#ro#ylene or #oly$inyl "hloride #lasti" material. he steeltu e 17 and metal !a"9et 1* may also e a##lied to this em odiment as ano#tion thereof. 38

DE?4C E E&R4NG CKS?4 N

Pno%n earin' "ushions inserted to earin' housin's for $ehi"le #ro#ellershafts are made of hard ru er. hese ru er ushin's after a time, u#onsu !e"tin' them to so mu"h or intermittent #ressure %ould e$entually e%orn out that %ould "ause the %o lin' of the "enter earin'.





se"ond, the ma>imum term of #rote"tion is only se$en years *3 "om#ared to a#atent %hi"h is t%enty years, ** oth re"9oned from the date of thea##li"ationA and third, the #ro$isions on utility model dis#ense %ith itssu stanti$e e>amination *L and #refer for a less "om#li"ated system.

ein' #lain automoti$e s#are #arts that must "onform to the ori'inalstru"tural desi'n of the "om#onents they see9 to re#la"e, the eaf S#rin'Eye ushin' and Dehi"le earin' Cushion are not ornamental. hey la"9 thede"orati$e Buality or $alue that must "hara"teri-e authenti" %or9s of a##liedart. hey are not e$en artisti" "reations %ith in"idental utilitarian fun"tions or%or9s in"or#orated in a useful arti"le. 4n a"tuality, the #ersonal #ro#ertiesdes"ri ed in the sear"h %arrants are me"hani"al %or9s, the #rin"i#al fun"tionof %hi"h is utility sans any aestheti" em ellishment.

Neither are %e to re'ard the eaf S#rin' Eye ushin' and Dehi"le earin'Cushion as in"luded in the "at"h all #hrase 5other literary, s"holarly,

s"ienti " and artisti" %or9s5 in Se"tion 17 .1(a) of R.&. No. 8 /3. &##lyin'the #rin"i#le of e=usde- :eneris %hi"h states that 5%here a statute des"ri esthin's of a #arti"ular "lass or 9ind a""om#anied y %ords of a 'eneri""hara"ter, the 'eneri" %ord %ill usually e limited to thin's of a similarnature %ith those #arti"ularly enumerated, unless there e somethin' in the"onte>t of the state %hi"h %ould re#el su"h inferen"e,5 *6 the eaf S#rin' Eye

ushin' and Dehi"le earin' Cushion are not "o#yri'hta le, ein' not of thesame 9ind and nature as the %or9s enumerated in Se"tion 17 of R.&. No.8 /3.

No "o#yri'ht 'ranted y la% "an e said to arise in fa$or of the #etitioner

des#ite the issuan"e of the "erti "ates of "o#yri'ht re'istration and thede#osit of the eaf S#rin' Eye ushin' and Dehi"le earin' Cushion. 4ndeed,in Joa4uin, Jr. v. 6rilon *7 and Pearl 3 6ean (Phil.), Incorporated v. Shoe-art,Incorporated ,*8 the Court ruled that:

Co#yri'ht, in the stri"t sense of the term, is #urely a statutory ri'ht. 4t is ane% or inde#endent ri'ht 'ranted y the statute, and not sim#ly a #ree>istin' ri'ht re'ulated y it. ein' a statutory 'rant, the ri'hts are onlysu"h as the statute "onfers, and may e o tained and en!oyed only %ithres#e"t to the su !e"ts and y the #ersons, and on terms and "onditionss#e"i ed in the statute. &""ordin'ly, it "an "o$er only the %or9s fallin' %ithinthe statutory enumeration or des"ri#tion.

hat the %or9s of the #etitioner may e the #ro#er su !e"t of a #atent doesnot entitle him to the issuan"e of a sear"h %arrant for $iolation of "o#yri'htla%s. 4n ho v. Court o# "ppeals */ and Pearl 3 6ean (Phil.), Incorporated v.Shoe-art, Incorporated ,L+ the Court ruled that 5these "o#yri'ht and #atentri'hts are "om#letely distin"t and se#arate from one another, and the#rote"tion a orded y one "annot e used inter"han'ea ly to "o$er items or





http://www.lawphil.net/judjuris/juri1999/jan1999/gr_108946_1999.html


http://www.lawphil.net/judjuris/juri2003/aug2003/gr_148222_2003.html



http://www.lawphil.net/judjuris/juri2002/mar2002/gr_115758_2002.html







http://www.lawphil.net/judjuris/juri1999/jan1999/gr_108946_1999.html





http://www.lawphil.net/judjuris/juri2002/mar2002/gr_115758_2002.html





%or9s that e9clusively #ertain to the others.5 he Court e>#ounded further,thus:

rademar9, "o#yri'ht and #atents are di erent intelle"tual #ro#erty ri'htsthat "annot e inter"han'ed %ith one another. & trademar9 is any $isi le

si'n "a#a le of distin'uishin' the 'oods (trademar9) or ser$i"es (ser$i"emar9) of an enter#rise and shall in"lude a stam#ed or mar9ed "ontainer of'oods. 4n relation thereto, a trade name means the name or desi'nationidentifyin' or distin'uishin' an enter#rise. 2ean%hile, the s"o#e of a"o#yri'ht is "on ned to literary and artisti" %or9s %hi"h are ori'inalintelle"tual "reations in the literary and artisti" domain #rote"ted from themoment of their "reation. atenta le in$entions, on the other hand, refer toany te"hni"al solution of a #ro lem in any eld of human a"ti$ity %hi"h isne%, in$ol$es an in$enti$e ste# and is industrially a##li"a le.

he #etitioner "annot nd sola"e in the rulin' of the Knited States Su#reme

Court in Ma>er v. SteinL1

to uttress his #etition. 4n that "ase, the artifa"tsin$ol$ed in that "ase %ere statuettes of dan"in' male and female 'uresmade of semi $itreous "hina. he "ontro$ersy therein "entered on the fa"tthat althou'h "o#yri'hted as 5%or9s of art,5 the statuettes %ere intended foruse and used as ases for ta le lam#s, %ith ele"tri" %irin', so"9ets andlam#shades atta"hed. he issue raised %as %hether the statuettes %ere"o#yri'ht #rote"ted in the Knited States, "onsiderin' that the "o#yri'hta##li"ant intended #rimarily to use them as lam# ases to e made and soldin Buantity, and "arried su"h intentions into e e"t. &t that time, theCo#yri'ht J"e inter#reted the 1/+/ Co#yri'ht &"t to "o$er %or9s of artisti""raftsmanshi# insofar as their form, ut not the utilitarian as#e"ts, %ere

"on"erned. &fter re$ie%in' the history and intent of the KS Con'ress on its"o#yri'ht le'islation and the inter#retation of the "o#yri'ht oJ"e, the KSSu#reme Court de"lared that the statuettes %ere held "o#yri'hta le %or9s of art or models or desi'ns for %or9s of art. he ?i'h Court ruled that:

5For9s of art (Class G) V (a) V In General. his "lass in"ludes %or9s of artisti""raftsmanshi#, in so far as their form ut not their me"hani"al or utilitarianas#e"ts are "on"erned, su"h as artisti" !e%elry, enamels, 'lass%are, andta#estries, as %ell as all %or9s elon'in' to the ne arts, su"h as #aintin's,dra%in's and s"ul#ture. ]5

So %e ha$e a "ontem#oraneous and lon' "ontinued "onstru"tion of thestatutes y the a'en"y "har'ed to administer them that %ould allo% there'istration of su"h a statuette as is in Buestion here. L

he ?i'h Court %ent on to state that 5;t<he di"hotomy of #rote"tion for theaestheti" is not eauty and utility ut art for the "o#yri'ht and the in$entionof ori'inal and ornamental desi'n for desi'n #atents.5 Si'ni "antly, the"o#yri'ht oJ"e #romul'ated a rule to im#lement 2a-er to %it:







] ;4<f 5the sole intrinsi" fun"tion of an arti"le is its utility, the fa"t that the%or9 is uniBue and attra"ti$ely sha#ed %ill not Bualify it as a %or9 of art.5

4n this "ase, the ushin' and "ushion are not %or9s of art. hey are, as the#etitioner himself admitted, utility models %hi"h may e the su !e"t of a

#atent.IN 9IGHT !8 A99 TH 8!R G!ING, the instant #etition is here y =EN4E=for la"9 of merit. he assailed =e"ision and Resolution of the Court of&##eals in C& G.R. S No. 7+*11 are & 4R2E=. Sear"h Farrant Nos. +1

*+1 and +1 *+ issued on "to er 1L, ++1 are &NNK E= &N= SE&S4=E. Costs a'ainst the #etitioner.

S R=ERE=.

uno, (Chairman), &ustria 2artine-, in'a, and Chi"o Na-ario, ., "on"ur.

AR9 D AN : HI9.;, INC!R !RAT D, petitioner , vs . SH! MART,INC!R !RAT D, a%& N!RTH DSAMAR TING, INC!R !RAT D, respondents .

D C I S I ! NC!R!NA, J .>

4n the instant #etition for re$ie% on certiorari under Rule *L of the Rulesof Court, #etitioner earl O =ean ( hil.) 4n". ( O =) assails the 2ay , ++1de"ision ;1< of the Court of &##eals re$ersin' the "to er 31, 1//6de"ision ; < of the Re'ional rial Court of 2a9ati, ran"h 133, in Ci$il Case No./ L16 %hi"h de"lared #ri$ate res#ondents Shoemart 4n". (S24) and NorthEdsa 2ar9etin' 4n". (NE24) lia le for infrin'ement of trademar9 and"o#yri'ht, and unfair "om#etition.

8ACTUA9 ANT C D NTS

he 2ay , ++1 de"ision of the Court of &##eals ;3< "ontained asummary of this dis#ute:

lainti a##ellant earl and =ean ( hil.), 4n". is a "or#oration en'a'ed in themanufa"ture of ad$ertisin' dis#lay units sim#ly referred to as li'ht

o>es. hese units utili-e s#e"ially #rinted #osters sand%i"hed et%een#lasti" sheets and illuminated %ith a"9 li'hts. earl and =ean %as a le tose"ure a Certi "ate of Co#yri'ht Re'istration dated anuary +, 1/81 o$erthese illuminated dis#lay units. he ad$ertisin' li'ht o>es %ere mar9etedunder the trademar9 oster &ds. he a##li"ation for re'istration of the

http://sc.judiciary.gov.ph/jurisprudence/2003/aug2003/148222.htm#_ftn1








trademar9 %as led %ith the ureau of atents, rademar9s and e"hnolo'y ransfer on une +, 1/83, ut %as a##ro$ed only on Se#tem er 1 , 1/88,#er Re'istration No. *116L. rom 1/81 to a out 1/88, earl and =eanem#loyed the ser$i"es of 2etro 4ndustrial Ser$i"es to manufa"ture itsad$ertisin' dis#lays.

Sometime in 1/8L, earl and =ean ne'otiated %ith defendant a##ellantShoemart, 4n". (S24) for the lease and installation of the li'ht o>es in S2City North Edsa. Sin"e S2 City North Edsa %as under "onstru"tion at thattime, S24 o ered as an alternati$e, S2 2a9ati and S2 Cu ao, to %hi"h earland =ean a'reed. n Se#tem er 11, 1/8L, earl and =eans General2ana'er, Rodolfo Der'ara, su mitted for si'nature the "ontra"ts "o$erin' S2Cu ao and S2 2a9ati to S24s &d$ertisin' romotions and u li"ity =i$ision2ana'er, Ramonlito & ano. nly the "ontra"t for S2 2a9ati, ho%e$er, %asreturned si'ned. n "to er *, 1/8L, Der'ara %rote & ano inBuirin' a outthe other "ontra"t and remindin' him that their a'reement for installation of

li'ht o>es %as not only for its S2 2a9ati ran"h, ut also for S2 Cu ao. S24did not other to re#ly.

4nstead, in a letter dated anuary 1*, 1/86, S24s house "ounsel informedearl and =ean that it %as res"indin' the "ontra"t for S2 2a9ati due to non

#erforman"e of the terms thereof. 4n his re#ly dated e ruary 17, 1/86,Der'ara #rotested the unilateral a"tion of S24, sayin' it %as %ithout asis. 4nthe same letter, he #ushed for the si'nin' of the "ontra"t for S2 Cu ao.

%o years later, 2etro 4ndustrial Ser$i"es, the "om#any formerly "ontra"tedy earl and =ean to fa ri"ate its dis#lay units, o ered to "onstru"t li'ht

o>es for Shoemarts "hain of stores. S24 a##ro$ed the #ro#osal and ten (1+)li'ht o>es %ere su seBuently fa ri"ated y 2etro 4ndustrial for S24. &fter its"ontra"t %ith 2etro 4ndustrial %as terminated, S24 en'a'ed the ser$i"es ofEI= Rain o% &d$ertisin' Cor#oration to ma9e the li'ht o>es. Some 3++units %ere fa ri"ated in 1//1. hese %ere deli$ered on a sta''ered asisand installed at S2 2e'amall and S2 City.

Sometime in 1/8/, earl and =ean, re"ei$ed re#orts that e>a"t "o#ies of itsli'ht o>es %ere installed at S2 City and in the fastfood se"tion of S2Cu ao. K#on in$esti'ation, earl and =ean found out that aside from the t%o( ) re#orted S2 ran"hes, li'ht o>es similar to those it manufa"tures %erealso installed in t%o ( ) other S2 stores. 4t further dis"o$ered that defendanta##ellant North Edsa 2ar9etin' 4n". (NE24), throu'h its mar9etin' arm, rimeS#ots 2ar9etin' Ser$i"es, %as set u# #rimarily to sell ad$ertisin' s#a"e inli'hted dis#lay units lo"ated in S24s di erent ran"hes. earl and =ean notedthat NE24 is a sister "om#any of S24.

4n the li'ht of its dis"o$eries, earl and =ean sent a letter dated =e"em er11, 1//1 to oth S24 and NE24 en!oinin' them to "ease usin' the su !e"t



li'ht o>es and to remo$e the same from S24s esta lishments. 4t alsodemanded the dis"ontinued use of the trademar9 oster &ds, and the#ayment to earl and =ean of "om#ensatory dama'es in the amount of

%enty 2illion esos ( +,+++,+++.++).

K#on re"ei#t of the demand letter, S24 sus#ended the leasin' of t%ohundred t%enty four ( *) li'ht o>es and NE24 too9 do%n itsad$ertisements for oster &ds from the li'hted dis#lay units in S24sstores. Claimin' that oth S24 and NE24 failed to meet all its demands, earland =ean led this instant "ase for infrin'ement of trademar9 and "o#yri'ht,unfair "om#etition and dama'es.

4n denyin' the "har'es hurled a'ainst it, S24 maintained that itinde#endently de$elo#ed its #oster #anels usin' "ommonly 9no%nte"hniBues and a$aila le te"hnolo'y, %ithout noti"e of or referen"e to earland =eans "o#yri'ht. S24 noted that the re'istration of the mar9 oster &ds

%as only for stationeries su"h as letterheads, en$elo#es, and theli9e. esides, a""ordin' to S24, the %ord oster &ds is a 'eneri" term %hi"h"annot e a##ro#riated as a trademar9, and, as su"h, re'istration of su"hmar9 is in$alid. 4t also stressed that earl and =ean is not entitled to thereliefs #rayed for in its "om#laint sin"e its ad$ertisin' dis#lay units "ontainedno "o#yri'ht noti"e, in $iolation of Se"tion 7 of .=. */. S24 alle'ed that

earl and =ean had no "ause of a"tion a'ainst it and that the suit %as #urelyintended to mali'n S24s 'ood name. n this asis, S24, aside from #rayin'for the dismissal of the "ase, also "ounter"laimed for moral, a"tual ande>em#lary dama'es and for the "an"ellation of earl and =eans Certi "ationof Co#yri'ht Re'istration No. = R LL8 dated anuary +, 1/81 and

Certi "ate of rademar9 Re'istration No. *16L dated Se#tem er 1 , 1/88.

NE24, for its #art, denied ha$in' manufa"tured, installed or used anyad$ertisin' dis#lay units, nor ha$in' en'a'ed in the usiness ofad$ertisin'. 4t re#leaded S24s a$erments, admissions and denials and #rayedfor similar reliefs and "ounter"laims as S24.

he R C of 2a9ati City de"ided in fa$or of O =:

Fherefore, defendants S24 and NE24 are found !ointly and se$erally lia le forinfrin'ement of "o#yri'ht under Se"tion of = */, as amended, andinfrin'ement of trademar9 under Se"tion of R& No. 166, as amended, andare here y #enali-ed under Se"tion 8 of = */, as amended, and Se"tions

3 and * of R& 166, as amended. &""ordin'ly, defendants are here ydire"ted:

(1) to #ay #lainti the follo%in' dama'es:

(a) a"tual dama'es 16,6++,+++.++,



re#resentin' #ro tsderi$ed y defendantsas a result of infrin'ement of #lainti s "o#yri'htfrom 1//1 to 1//

( ) moral dama'es 1,+++.+++.++

(") e>em#lary dama'es 1,+++,+++.++

(d) attorneys fees 1,+++,+++.++#lus

(e) "osts of suitA

( ) to deli$er, under oath, for im#oundin' in the National i rary, all

li'ht o>es of S24 %hi"h %ere fa ri"ated y 2etro 4ndustrialSer$i"es and EI= Rain o% &d$ertisin' Cor#orationA

(3) to deli$er, under oath, to the National i rary, all ller #ostersusin' the trademar9 oster &ds, for destru"tionA and

(*) to #ermanently refrain from infrin'in' the "o#yri'ht on #lainti sli'ht o>es and its trademar9 oster &ds.

=efendants "ounter"laims are here y ordered dismissed for la"9 ofmerit.

S R=ERE=. ;*<

n a##eal, ho%e$er, the Court of &##eals re$ersed the trial "ourt:

Sin"e the li'ht o>es "annot, y any stret"h of the ima'ination, e"onsidered as either #rints, #i"torial illustrations, ad$ertisin' "o#ies, la els,ta's or o> %ra#s, to e #ro#erly "lassi ed as a "o#yri'hta le "lass %or9,%e ha$e to a'ree %ith S24 %hen it #osited that %hat %as "o#yri'hted %erethe te"hni"al dra%in's only, and not the li'ht o>es themsel$es, thus:

* . Fhen a dra%in' is te"hni"al and de#i"ts a utilitarian o !e"t, a "o#yri'hto$er the dra%in's li9e #lainti a##ellants %ill not e>tend to the a"tualo !e"t. 4t has so een held under !uris#ruden"e, of %hi"h the leadin' "aseis a9er $s. Selden (1+1 K.S. 8*1 (187/). 4n that "ase, Selden had o tained a"o#yri'ht #rote"tion for a oo9 entitled Seldens Condensed ed'er or

oo99ee#in' Sim#li ed %hi"h #ur#orted to e>#lain a ne% system ofoo99ee#in'. 4n"luded as #art of the oo9 %ere lan9 forms and illustrations

"onsistin' of ruled lines and headin's, s#e"ially desi'ned for use in





a"Buired a se"ondary meanin' in this !urisdi"tion, %e nd that earl and=eans e>"lusi$e ri'ht to the use of oster &ds is limited to %hat is %ritten inits "erti "ate of re'istration, namely, stationeries.

=efendants a##ellants "annot thus e held lia le for infrin'ement of the

trademar9 oster &ds. here ein' no ndin' of either "o#yri'ht or trademar9 infrin'ement on the#art of S24 and NE24, the monetary a%ard 'ranted y the lo%er "ourt to

earl and =ean has no le' to stand on.

>>> >>> >>>

F?ERE RE, #remises "onsidered, the assailed de"ision is REDERSE= andSE &S4=E, and another is rendered =4S24SS4NG the "om#laint and"ounter"laims in the a o$e entitled "ase for la"9 of merit. ;L<

=issatis ed %ith the a o$e de"ision, #etitioner O = led the instant#etition assi'nin' the follo%in' errors for the Courts "onsideration:

&. ?E ? N R& E C KR & E& S ERRE= 4N RK 4NG ?& NC IR4G? 4N R4NGE2EN F&S C 224 E= I RES N=EN SS2 &N= NE24A

. ?E ? N R& E C KR & E& S ERRE= 4N RK 4NG ?& N4N R4NGE2EN E&R O =E&NS R&=E2&RP S ER &=SF&S C 224 E= I RES N=EN S S2 &N= NE24A

C. ?E ? N R& E C KR & E& S ERRE= 4N =4S24SS4NG ?E&F&R= ?E R4& C KR , =ES 4 E ?E & ERS 4N=4NG,N =4S K E= I ?E ? N R& E C KR & E& S, ?&S2 F&S GK4 I &= &4 ? 4N 4 S NEG 4& 4 N &=DER 4S4NG C N R&C S F4 ? E&R O =E&N.

=. ?E ? N R& E C KR & E& S ERRE= 4N N ? =4NGRES N=EN S S2 &N= NE24 4& E E&R O =E&N R&C K& , 2 R& O E E2 &RI =&2&GES, & RNEIS EES &N=C S S SK4 . ;6<

ISSU S

4n resol$in' this $ery interestin' "ase, %e are "hallen'ed on"e a'ain to#ut into #ro#er #ers#e"ti$e four main "on"erns of intelle"tual #ro#erty la%#atents, "o#yri'hts, trademar9s and unfair "om#etition arisin' from







infrin'ement of any of the rst three. Fe shall fo"us then on the follo%in'issues:

(1) if the en'ineerin' or te"hni"al dra%in's of an ad$ertisin' dis#layunit (li'ht o>) are 'ranted "o#yri'ht #rote"tion ("o#yri'ht "erti "ate

of re'istration) y the National i rary, is the li'ht o> de#i"ted insu"h en'ineerin' dra%in's i#so fa"to also #rote"ted y su"h"o#yri'htW

( ) or should the li'ht o> e re'istered se#arately and #rote"ted ya #atent issued y the ureau of atents rademar9s and e"hnolo'y

ransfer (no% 4ntelle"tual ro#erty J"e) in addition to the "o#yri'htof the en'ineerin' dra%in'sW

(3) "an the o%ner of a re'istered trademar9 le'ally #re$ent othersfrom usin' su"h trademar9 if it is a mere a re$iation of a term

des"ri#ti$e of his 'oods, ser$i"es or usinessW

!N TH ISSU !8 C! YRIGHT IN8RING M NT

etitioner O =s "om#laint %as that S24 infrin'ed on its "o#yri'ht o$erthe li'ht o>es %hen S24 had the units manufa"tured y 2etro and EI=Rain o% &d$ertisin' for its o%n a""ount. $iously, #etitioners #osition %as#remised on its elief that its "o#yri'ht o$er the en'ineerin' dra%in'se>tended ipso #acto to the li'ht o>es de#i"ted or illustrated in saiddra%in's. 4n rulin' that there %as no "o#yri'ht infrin'ement, the Court of &##eals held that the "o#yri'ht %as limited to the dra%in's alone and not tothe li'ht o> itself. Fe a'ree %ith the a##ellate "ourt.

irst, #etitioners a##li"ation for a "o#yri'ht "erti "ate as %ell asCo#yri'ht Certi "ate No. = R L88 issued y the National i rary on anuary

+, 1/81 "learly stated that it %as for a "lass %or9 under Se"tion ( ) of = */ ( he 4ntelle"tual ro#erty =e"ree) %hi"h %as the statute then

#re$ailin'. Said Se"tion e>#ressly enumerated the %or9s su !e"t to"o#yri'ht:

SEC. . he ri'hts 'ranted y this =e"ree shall, from the moment of "reation,su sist %ith res#e"t to any of the follo%in' %or9s:

> > > > > > > > >

( ) rints, #i"torial illustrations, ad$ertisin' "o#ies, la els, ta's, and o>%ra#sA

> > > > > > > > >



&lthou'h #etitioners "o#yri'ht "erti "ate %as entitled &d$ertisin' =is#layKnits (%hi"h de#i"ted the o> ty#e ele"tri"al de$i"es), its "laim of "o#yri'htinfrin'ement "annot e sustained.

Co#yri'ht, in the stri"t sense of the term, is #urely a statutoryri'ht. ein' a mere statutory 'rant, the ri'hts are limited to %hat the statute"onfers. 4t may e o tained and en!oyed only %ith res#e"t to the su !e"tsand y the #ersons, and on terms and "onditions s#e"i ed in the statute.;7< "ccordin:ly, it can cover only the &or!s #allin: &ithin the statutory enu-eration or description. ;8<

O = se"ured its "o#yri'ht under the "lassi "ation class F &or!. hisein' so, #etitioners "o#yri'ht #rote"tion e>tended only to the te"hni"al

dra%in's and not to the li'ht o> itself e"ause the latter %as not at all inthe "ate'ory of #rints, #i"torial illustrations, ad$ertisin' "o#ies, la els, ta'sand o> %ra#s. Stated other%ise, e$en as %e nd that O = indeed o%ned a$alid "o#yri'ht, the same "ould ha$e referred only to the te"hni"al dra%in's

%ithin the "ate'ory of #i"torial illustrations. 4t "ould not ha$e #ossi lystret"hed out to in"lude the underlyin' li'ht o>. he stri"t a##li"ation ;/< of the la%s enumeration in Se"tion #re$ents us from 'i$in' #etitioner e$en alittle lee%ay, that is, e$en if its "o#yri'ht "erti "ate %as entitled &d$ertisin'=is#lay Knits. Fhat the la% does not in"lude, it e>"ludes, and for the 'oodreason: the li'ht o> %as not a literary or artisti" #ie"e %hi"h "ould e"o#yri'hted under the "o#yri'ht la%. &nd no less "learly, neither "ould thela"9 of statutory authority to ma9e the li'ht o> "o#yri'hta le e remedied

y the sim#listi" a"t of entitlin' the "o#yri'ht "erti "ate issued y theNational i rary as &d$ertisin' =is#lay Knits.

4n ne, if S24 and NE24 re#rinted O =s te"hni"al dra%in's for sale to the#u li" %ithout li"ense from O =, then no dou t they %ould ha$e een 'uiltyof "o#yri'ht infrin'ement. ut this %as not the "ase. S24s and NE24s a"ts"om#lained of y O = %ere to ha$e units similar or identi"al to the li'ht o>illustrated in the te"hni"al dra%in's manufa"tured y 2etro and EI=Rain o% &d$ertisin', for leasin' out to di erent ad$ertisers. Fas this aninfrin'ement of #etitioners "o#yri'ht o$er the te"hni"al dra%in'sW Fe do notthin9 so.

=urin' the trial, the #resident of O = himself admitted that the li'ht o>%as neither a literary not an artisti" %or9 ut an en'ineerin' or mar9etin'in$ention. ;1+< $iously, there a##eared to e some "onfusion re'ardin' %hatou'ht or ou'ht not to e the #ro#er su !e"ts of "o#yri'hts, #atents andtrademar9s. 4n the leadin' "ase of ho vs. Court o# "ppeals , ;11< %e ruled thatthese three le'al ri'hts are "om#letely distin"t and se#arate from oneanother, and the #rote"tion a orded y one "annot e used inter"han'ea lyto "o$er items or %or9s that e>"lusi$ely #ertain to the others:

rademar9, "o#yri'ht and #atents are di erent intelle"tual #ro#erty ri'htsthat "annot e inter"han'ed %ith one another. " trade-ar! is any visi1le





http://sc.judiciary.gov.ph/jurisprudence/2002/mar2002/115758.htm






http://sc.judiciary.gov.ph/jurisprudence/2002/mar2002/115758.htm




si:n capa1le o# distin:uishin: the :oods (trade-ar!) or services (service-ar!) o# an enterprise and shall include a sta-ped or -ar!ed container o#:oods . 4n relation thereto, a trade name means the name or desi'nationidentifyin' or distin'uishin' an enter#rise. 2ean%hile, the scope o# acopyri:ht is con;ned to literary and artistic &or!s %hi"h are ori'inal

intelle"tual "reations in the literary and artisti" domain #rote"ted from themoment of their "reation. Patenta1le inventions, on the other hand, re#er toany technical solution o# a pro1le- in any ;eld o# hu-an activity %hi"h isne%, in$ol$es an in$enti$e ste# and is industrially a##li"a le.

!N TH ISSU !8 AT NT IN8RING M NT

his rin's us to the ne>t #oint: if, des#ite its manufa"ture and"ommer"ial use of the li:ht 1o9es %ithout li"ense from #etitioner, #ri$ateres#ondents "annot e held le'ally lia le for infrin'ement of O =s"o#yri'ht o$er its technical dra&in:s o# the said li:ht 1o9es , should they elia le instead for infrin'ement of #atentW Fe do not thin9 so either.

or some reason or another, #etitioner ne$er se"ured a #atent for theli'ht o>es. 4t therefore a"Buired no #atent ri'hts %hi"h "ould ha$e #rote"tedits in$ention, if in fa"t it really %as. &nd e"ause it had no #atent, #etitioner"ould not le'ally #re$ent anyone from manufa"turin' or "ommer"ially usin'the "ontra#tion. 4n Creser Precision Syste-s, Inc. vs. Court o# "ppeals , ;1 < %eheld that there "an e no infrin'ement of a #atent until a #atent has eenissued, sin"e %hate$er ri'ht one has to the in$ention "o$ered y the#atent arises alone #ro- the :rant o# patent . > > > (&)n in$entor has no"ommon la% ri'ht to a mono#oly of his in$ention. ?e has the ri'ht to ma9euse of and $end his in$ention, ut if he $oluntarily dis"loses it, su"h as yo erin' it for sale, the %orld is free to "o#y and use it %ith im#unity. &#atent, ho%e$er, 'i$es the in$entor the ri'ht to e>"lude all others. &s a#atentee, he has the e>"lusi$e ri'ht of ma9in', sellin' or usin' the in$ention.;13< n the assum#tion that #etitioners ad$ertisin' units %ere #atenta lein$entions, #etitioner re$ealed them fully to the #u li" y su mittin' theen'ineerin' dra%in's thereof to the National i rary.

o e a le to e e"ti$ely and le'ally #re"lude others from "o#yin' and#ro tin' from the in$ention, a #atent is a #rimordial reBuirement. No #atent,

no #rote"tion. he ultimate 'oal of a #atent system is to rin' ne% desi'nsand te"hnolo'ies into the #u li" domain throu'h dis"losure. ;1*< 4deas, on"edis"losed to the #u li" %ithout the #rote"tion of a $alid #atent, are su !e"t toa##ro#riation %ithout si'ni "ant restraint. ;1L<

n one side of the "oin is the #u li" %hi"h %ill ene t from ne% ideasA onthe other are the in$entors %ho must e #rote"ted. &s held in Bauer 3 Cievs. F6onnel , ;16< he a"t se"ured to the in$entor the e>"lusi$e ri'ht to ma9euse, and $end the thin' #atented, and "onseBuently to #re$ent others from

http://sc.judiciary.gov.ph/jurisprudence/1998/feb1998/118708.htm






http://sc.judiciary.gov.ph/jurisprudence/1998/feb1998/118708.htm








e>er"isin' li9e #ri$ile'es %ithout the "onsent of the #atentee. 4t %as #assedfor the #ur#ose of en"oura'in' useful in$ention and #romotin' ne% anduseful in$entions y the #rote"tion and stimulation 'i$en to in$enti$e 'enius,and %as intended to se"ure to the #u li", after the la#se of the e>"lusi$e#ri$ile'es 'ranted the ene t of su"h in$entions and im#ro$ements.

he la% attem#ts to stri9e an ideal alan"e et%een the t%o interests:

( he #)atent system thus em odies a "arefully "rafted ar'ain foren"oura'in' the "reation and dis"losure of ne% useful and non o $iousad$an"es in te"hnolo'y and desi'n, in return for the e>"lusi$e ri'ht to#ra"ti"e the in$ention for a num er of years. he in$entor may 9ee# hisin$ention se"ret and rea# its fruits inde nitely. 4n "onsideration of itsdis"losure and the "onseBuent ene t to the "ommunity, the #atent is'ranted. &n e>"lusi$e en!oyment is 'uaranteed him for 17 years, ut u#onthe e>#iration of that #eriod, the 9no%led'e of the in$ention inures to the#eo#le, %ho are thus ena led to #ra"ti"e it and #ro t y its use. ;17<

he #atent la% has a three fold #ur#ose: rst, #atent la% see9s to fosterand re%ard in$entionA se"ond, it #romotes dis"losures of in$entions tostimulate further inno$ation and to #ermit the #u li" to #ra"ti"e thein$ention on"e the #atent e>#iresA third, the strin'ent reBuirements for#atent #rote"tion see9 to ensure that ideas in the #u li" domain remainthere for the free use of the #u li". ;18<

4t is only after an e>hausti$e e>amination y the #atent oJ"e that a#atent is issued. Su"h an in de#th in$esti'ation is reBuired e"ause inre%ardin' a useful in$ention, the ri'hts and %elfare of the "ommunity must

e fairly dealt %ith and e e"ti$ely 'uarded. o that end, the #rereBuisites too tainin' a #atent are stri"tly o ser$ed and %hen a #atent is issued, thelimitations on its e>er"ise are eBually stri"tly enfor"ed. o e'in %ith, a'enuine in$ention or dis"o$ery must e demonstrated lest in the "onstantdemand for ne% a##lian"es, the hea$y hand of tri ute e laid on ea"h sli'htte"hnolo'i"al ad$an"e in art. ;1/<

here is no su"h s"rutiny in the "ase of "o#yri'hts nor any noti"e#u lished efore its 'rant to the e e"t that a #erson is "laimin' the "reationof a %or9. he la% "onfers the "o#yri'ht from the moment of "reation ; +< andthe "o#yri'ht "erti "ate is issued u#on re'istration %ith the National i rary

of a s%orn e9Dparte "laim of "reation. herefore, not ha$in' 'one throu'h the arduous e>amination for #atents,

the #etitioner "annot e>"lude others from the manufa"ture, sale or"ommer"ial use of the li'ht o>es on the sole asis of its "o#yri'ht "erti "ateo$er the te"hni"al dra%in's.

Stated other%ise, %hat #etitioner see9s is e>"lusi$ity %ithout anyo##ortunity for the #atent oJ"e (4 ) to s"rutini-e the li'ht o>s eli'i ility as











a #atenta le in$ention. he irony here is that, had #etitioner se"ured a#atent instead, its e>"lusi$ity %ould ha$e een for 17 years only. ut throu'hthe sim#li ed #ro"edure of "o#yri'ht re'istration %ith the National i rary%ithout under'oin' the ri'or of defendin' the #atenta ility of its in$ention

efore the 4 and the #u li" the #etitioner %ould e #rote"ted for L+

years. his situation "ould not ha$e een the intention of the la%.4n the oft "ited "ase of Ba!er vs. Selden ; 1<, the Knited States Su#reme

Court held that only the e9pression o# an idea is protected 1y copyri:ht, not the idea itsel# . 4n that "ase, the #lainti held the "o#yri'ht of a oo9 %hi"he>#ounded on a ne% a""ountin' system he had de$elo#ed. he #u li"ationillustrated lan9 forms of led'ers utili-ed in su"h a system. he defendantre#rodu"ed forms similar to those illustrated in the #lainti s "o#yri'hted

oo9. he KS Su#reme Court ruled that:

here is no dou t that a %or9 on the su !e"t of oo9 9ee#in', thou'h onlye>#lanatory of %ell 9no%n systems, may e the su !e"t of a "o#yri'htA ut,then, it is "laimed only as a oo9. > > >. ut there is a "lear distin"tion

et%een the oo9s, as su"h, and the art, %hi"h it is, intended toillustrate. he mere statement of the #ro#osition is so e$ident that it reBuireshardly any ar'ument to su##ort it. he same distin"tion may e #redi"atedof e$ery other art as %ell as that of oo99ee#in'. & treatise on the"om#osition and use of medi"ines, e they old or ne%A on the "onstru"tionand use of #lou'hs or %at"hes or "hurnsA or on the mi>ture and a##li"ationof "olors for #aintin' or dyein'A or on the mode of dra%in' lines to #rodu"ethe e e"t of #ers#e"ti$e, %ould e the su !e"t of "o#yri'htA ut no one%ould "ontend that the "o#yri'ht of the treatise %ould 'i$e the e>"lusi$eri'ht to the art or manufa"ture des"ri ed therein. he "o#yri'ht of the oo9,if not #irated from other %or9s, %ould e $alid %ithout re'ard to the no$eltyor %ant of no$elty of its su !e"t matter. he no$elty of the art or thin'des"ri ed or e>#lained has nothin' to do %ith the $alidity of the"o#yri'ht. To #<" 'o 'h" a/'hor o 'h" )oo a% "=c4/$#<" ro "r' #%'h" ar' &"$cr#)"& 'h"r"#%, h"% %o "=a(#%a'#o% o #'$ %o<"4' ha$"<"r )""% oKc#a44 (a&", o/4& )" a$/r r#$" a%& a ra/& / o% 'h"

/)4#c. Tha' #$ 'h" ro<#%c" o 4"''"r$ a'"%', %o' o co r# h'. Th"c4a#( 'o a% #%<"%'#o% o &#$co<"r o a% ar' or (a%/ ac'/r" (/$' )"$/)F"c'"& 'o 'h" "=a(#%a'#o% o 'h" a'"%' !Kc" )" or" a%"=c4/$#<" r# h' 'h"r"#% ca% )" o)'a#%"&L a%& a a'"%' ro( 'h"

o<"r%("%' ca% o%4 $"c/r" #'.

he di eren"e et%een the t%o thin's, letters #atent and "o#yri'ht, may eillustrated y referen"e to the su !e"ts !ust enumerated. a9e the "ase ofmedi"ines. Certain mi>tures are found to e of 'reat $alue in the healin'art. I 'h" &#$co<"r"r r#'"$ a%& /)4#$h"$ a )oo o% 'h" $/)F"c' :a$r" /4ar h $#c#a%$ "%"ra44 &o;, h" a#%$ %o "=c4/$#<" r# h' 'o 'h"(a%/ ac'/r" a%& $a4" o 'h" ("&#c#%"L h" #<"$ 'ha' 'o 'h" /)4#c. I





h" &"$#r"$ 'o ac /#r" $/ch "=c4/$#<" r# h', h" (/$' o)'a#% a a'"%'or 'h" (#='/r" a$ a %" ar', (a%/ ac'/r" or co( o$#'#o% o

(a''"r. H" (a co r# h' h#$ )oo , # h" 4"a$"$L )/' 'ha' o%4$"c/r"$ 'o h#( 'h" "=c4/$#<" r# h' o r#%'#% a%& /)4#$h#% h#$)oo . So o a44 o'h"r #%<"%'#o%$ or &#$co<"r#"$.

he "o#yri'ht of a oo9 on #ers#e"ti$e, no matter ho% many dra%in's andillustrations it may "ontain, 'i$es no e>"lusi$e ri'ht to the modes of dra%in'des"ri ed, thou'h they may ne$er ha$e een 9no%n or used efore. y#u lishin' the oo9 %ithout 'ettin' a #atent for the art, the latter is 'i$en tothe #u li".

> > >

No%, %hilst no one has a ri'ht to #rint or #u lish his oo9, or any material#art thereof, as a oo9 intended to "on$ey instru"tion in the art, any #erson

may #ra"ti"e and use the art itself %hi"h he has des"ri ed and illustratedtherein. Th" /$" o 'h" ar' #$ a 'o'a44 &# "r"%' 'h#% ro( a/)4#ca'#o% o 'h" )oo "= 4a#%#% #'. he "o#yri'ht of a oo9 onoo99ee#in' "annot se"ure the e>"lusi$e ri'ht to ma9e, sell and use a""ountoo9s #re#ared u#on the #lan set forth in su"h oo9. Fhether the art mi'ht

or mi'ht not ha$e een #atented, is a Buestion, %hi"h is not efore us. 4t %asnot #atented, and is o#en and free to the use of the #u li". &nd, of "ourse, inusin' the art, the ruled lines and headin's of a""ounts must ne"essarily eused as in"ident to it.

he #lausi ility of the "laim #ut for%ard y the "om#lainant in this "ase

arises from a "onfusion of ideas #rodu"ed y the #e"uliar nature of the artdes"ri ed in the oo9s, %hi"h ha$e een made the su !e"t of "o#yri'ht. 4ndes"ri in' the art, the illustrations and dia'rams em#loyed ha##ened to"orres#ond more "losely than usual %ith the a"tual %or9 #erformed y theo#erator %ho uses the art. > > > Th" &"$cr# '#o% o 'h" ar' #% a )oo ,'ho/ h "%'#'4"& 'o 'h" )"%"J' o co r# h', 4a $ %o o/%&a'#o% or a%"=c4/$#<" c4a#( 'o 'h" ar' #'$"4 . Th" o)F"c' o 'h" o%" #$ "= 4a%a'#o%L'h" o)F"c' o 'h" o'h"r #$ /$". Th" or("r (a )" $"c/r"& )co r# h'. Th" 4a''"r ca% o%4 )" $"c/r"&, # #' ca% )" $"c/r"& a' a44,) 4"''"r$ a'"%'. (unders"orin' su##lied)

!N TH ISSU !8 TRAD MAR IN8RING M NT

his issue "on"erns the use y res#ondents of the mar9 oster &ds %hi"h#etitioners #resident said %as a "ontra"tion of #oster ad$ertisin'. O = %asa le to se"ure a trademar9 "erti "ate for it, ut one %here the 'oodss#e"i ed %ere stationeries su"h as letterheads, en$elo#es, "allin' "ards and



the 'oods and ser$i"es "arryin' the trademar9 oster &ds "ould not edistin'uished from the 'oods and ser$i"es of other entities.

his fa"t also #re$ented the a##li"ation of the do"trine of se"ondarymeanin'. oster &ds %as 'eneri" and in"a#a le of ein' used as atrademar9 e"ause it %as used in the eld of #oster ad$ertisin', the $ery

usiness en'a'ed in y #etitioner. Se"ondary meanin' means that a %ord or#hrase ori'inally in"a#a le of e>"lusi$e a##ro#riation %ith referen"e to anarti"le in the mar9et ( e"ause it is 'eo'ra#hi"ally or other%ise des"ri#ti$e)mi'ht ne$ertheless ha$e een used for so lon' and so e>"lusi$ely y one#rodu"er %ith referen"e to his arti"le that, in the trade and to that ran"h of the #ur"hasin' #u li", the %ord or #hrase has "ome to mean that the arti"le%as his #ro#erty. ; /< he admission y #etitioners o%n e>#ert %itness that hehimself "ould not asso"iate oster &ds %ith #etitioner O = e"ause it %astoo 'eneri" de nitely #re"luded the a##li"ation of this e>"e#tion.

?a$in' dis"ussed the most im#ortant and "riti"al issues, %e see no need

to ela or the rest.&ll told, the Court nds no re$ersi le error "ommitted y the Court of

&##eals %hen it re$ersed the Re'ional rial Court of 2a9ati City.

H R 8!R , the #etition is here y =EN4E= and the de"ision of theCourt of &##eals dated 2ay , ++1 is & 4R2E= in toto .

S! !RD R D.Puno, (Chair-an), Pan:ani1an, SandovalDGutierre>, and CarpioDMorales,

JJ., "on"ur .

2etro Gold%yn 2ayer Studios 4n". (2G2) $. Gro9ster, =

C#'a'#o%. L*L K.S. /13, 1 L S. Ct. 76*, 16 . Ed. d 781, 7L K.S. .Q. d1++1, 18 4 R= 7/, ++L 4 RC +31, 33 2ed. . R#tr. 186L ( ++L)

Br#" 8ac' S/((ar . he defendant s distri uted free soft%are thatallo%ed #ri$ate indi$iduals to share "o#yri'hted ele"troni" les %ithoutauthori-ation. Some of those les shared are mo$ies and son's that 2G2hold "o#yri'hts to.

S %o $#$ o R/4" o 9a . Fhen a distri utor ta9es aJrmati$e ste#s tofoster infrin'ement throu'h the use of its #rodu"t, the distri utor %ill elia le for that infrin'ement "ondu"ted y 3rd #arties.

8ac'$.


http://www.bloomberglaw.com/s/opinion/9e3a1cc5ee2adb39b06ea127d7543e9f/document/X12G2NM003?search32=C9P6UQR5E9FN6PB1E9HMGNRKCLP6QF98CTP6UQRJEHIN481641PN8SJ5C5MM6OBJEGKJMERJEHIMQRB5CHFN6PB1E9HMGFB6C5M76P8&ORIGINATION_CODE=00344







Gro9ster, = and StreamCast Net%or9 distri uted fee soft%are that allo%edthe sharin' of les in a #eer to #eer net%or9. his a$oided the need for"entral ser$ers and "ostly ser$er stora'e and %or9s faster. Sin"e les "an 'ofrom "om#uter to "om#uter and not throu'h the ser$er it is safer and "osteJ"ient. his #ro'ram %as used y uni$ersities, 'o$ernment a'en"ies,

"or#orations, li raries and then #ri$ate users. ri$ate users e'an sharin'"o#yri'hted musi" and $ideo les %ithout authori-ation. Gro9ster usedte"hnolo'y "alled ast ra"9 and Stream Cast used Gnutella. he les shareddo not 'o to a "entral lo"ation so Gro9ster and StreamCast did not 9no%%hen the les %ere ein' "o#ied ut if they had sear"hed there soft%arethey %ould see the ty#e of les ein' shared. 4t %as sho%n that StreamCast'a$e soft%are "alled #enNa# la eled the est alternati$e to Na#ster in theho#es to ta9e all the Na#ster users that had to sto# usin' that soft%are afterNa#ster %as sued. Gro9ster had a #ro'ram "alled #enNa# that allo%edusers to sear"h for Na#ster les. Gro9ster and StreamCast re"ei$ed re$enuesfrom #ostin' ad$ertisin' all o$er its #ro'ram soft%are. 2G2 %as a le to

sho% that some /+ #er"ent of the les ein' shared %here "o#yri'hted les.&lso there is no e$iden"e that either "om#any tried to lter or sto# "o#yri'htinfrin'ement. he distri"t "ourt 'ranted summary !ud'ment in fa$or of Gro9ster and Stream Case e"ause althou'h users of the soft%are didinfrin'e 2G2 s #ro#erty there %as no #roof there the distri utors had a"tual9no%led'e of s#e"i " a"ts of infrin'ement. 2G2 a##ealed.

I$$/". Fhether a distri utor of a #rodu"t that is "a#a le of la%ful andunla%ful use is lia le for "o#yri'ht infrin'ement y a 3rd #arty usin' that#rodu"t.

H"4&. Ies. he a##eals "ourt stated that sin"e these distri utors did notha$e a"tual 9no%led'e, did not #arta9e in, or monitor the le sharin' theyare not dire"tly lia le for the infrin'ement. ?o%e$er the "ourt erred in ndin'they %ere not se"ondarily lia le for the a"tions of the users of its #rodu"ts.

here is a alan"e et%een 'ro%in' te"hnolo'ies and "o#yri'ht #rote"tion,ut to not ma9e distri utors lia le %ill ma9e "o#yri'ht #rote"tions

meanin'less. he lo%er "ourt loo9ed to the "ommer"e do"trine no% "odi ed%hi"h states that a #rodu"t must e "a#a le of "ommer"ially si'ni "antnoninfrid'in' uses and if so, no se"ondary lia ility %ould follo%. his "ourt

nds that inter#retation too narro%. ?ere this "ourt "onsiders the do"trine of

indu"ement to also e rele$ant. Fhen a distri utor #romotes usin' its de$i"eto infrin'e "o#yri'ht material, sho%n y aJrmati$e ste#s to fosterinfrin'ement this is indu"ement and the distri utor %ill e lia le for 3rd #artyinfrin'ement. &ll the a"tions of the "om#anies is enou'h to sho% a 'enuineissue of material fa"t, thus the "ourt re$ersed the summary !ud'ment rulin'and remanded the "ase u#on those ndin's.



D#$$"%'. usti"e reyer states this "ase is no di erent from Sony %here timeshiftin' %as the main #ur#ose of users "o#yin' sho%s y DCRS (so they"ould %at"h later). he "ourt did not nd Sony res#onsi le there. &lso thereis su"h a ma!or mar9et for non infrin'ement uses for this soft%are that theyshouldn t e sto##ed from distri utin' the soft%are. he standard in Sony

should not e ada#ted as %e did it here to add indu"ement.

D#$c/$$#o%. Fhen a distri utor ta9es aJrmati$e ste#s to fosterinfrin'ement throu'h the use of its #rodu"t, the distri utor %ill e lia le forthat infrin'ement.

So% Cor . <. U%#<"r$a4 C#' S'/&#o$, *6* U.S. *17 :1- *;

So% Cor ora'#o% o A("r#ca <. U%#<"r$a4 C#' S'/&#o$, I%c.

No. 1+16 7

Ar /"& a%/ar 1 , 1- 3

R"ar /"& !c'o)"r 3, 1- 3

D"c#&"& a%/ar 17, 1- *

*6* U.S. *17

Sylla1us

etitioner Sony Cor#. manufa"tures home $ideota#e re"orders (D R0s), andmar9ets them throu'h retail esta lishments, some of %hi"h are also#etitioners. Res#ondents o%n the "o#yri'hts on some of the tele$ision#ro'rams that are road"ast on the #u li" air%a$es. Res#ondents rou'ht ana"tion a'ainst #etitioners in ederal =istri"t Court, alle'in' that D R"onsumers had een re"ordin' some of res#ondents0 "o#yri'hted %or9s thathad een e>hi ited on "ommer"ially s#onsored tele$ision, and there yinfrin'ed res#ondents0 "o#yri'hts, and further that #etitioners %ere lia le forsu"h "o#yri'ht infrin'ement e"ause of their mar9etin' of the D R0s.Res#ondents sou'ht money dama'es, an eBuita le a""ountin' of #ro ts, andan in!un"tion a'ainst the manufa"ture and mar9etin' of the D R0s. he

=istri"t Court denied res#ondents all relief, holdin' that non"ommer"ialhome use re"ordin' of material road"ast o$er the #u li" air%a$es %as a fairuse of "o#yri'hted %or9s, and did not "onstitute "o#yri'ht infrin'ement, andthat #etitioners "ould not e held lia le as "ontri utory infrin'ers e$en if thehome use of a D R %as "onsidered an infrin'in' use. he Court of &##ealsre$ersed, holdin' #etitioners lia le for "ontri utory infrin'ement andorderin' the =istri"t Court to fashion a##ro#riate relief



0eld5 he sale of the D R0s to the 'eneral #u li" does not "onstitute"ontri utory infrin'ement of res#ondents0 "o#yri'hts. #. *6* K. S. * 8 *L6.

(a) he #rote"tion 'i$en to "o#yri'hts is %holly statutory, and, in a "ase li9ethis, in %hi"h Con'ress has not #lainly mar9ed the "ourse to e follo%ed y

the !udi"iary, this Court must e "ir"ums#e"t in "onstruin' the s"o#e ofri'hts "reated y a statute that ne$er "ontem#lated su"h a "al"ulus ofinterests. &ny indi$idual may re#rodu"e a "o#yri'hted %or9 for a 5fair use5Athe "o#yri'ht o%ner does not #ossess the e>"lusi$e ri'ht to su"h a use.

#. *6* K. S. * 8 *3*.

( ) ale- Co. v. 0arper Brothers, K. S. LL , does not su##ort res#ondents0no$el theory that su##lyin' the 5means5 to a""om#lish an infrin'in' a"ti$ityand en"oura'in' that a"ti$ity throu'h ad$ertisement are suJ"ient toesta lish lia ility for "o#yri'ht infrin'ement. his "ase does not fall in the"ate'ory of those in %hi"h it is manifestly !ust to

a'e *6* K. S. *18

im#ose $i"arious lia ility e"ause the 5"ontri utory5 infrin'er %as in a#osition to "ontrol the use of "o#yri'hted %or9s y others and hadauthori-ed the use %ithout #ermission from the "o#yri'ht o%ner. ?ere, theonly "onta"t et%een #etitioners and the users of the D R0s o""urred at themoment of sale. &nd there is no #re"edent for im#osin' $i"arious lia ility onthe theory that #etitioners sold the D R0s %ith "onstru"ti$e 9no%led'e thattheir "ustomers mi'ht use the eBui#ment to ma9e unauthori-ed "o#ies of"o#yri'hted material. he sale of "o#yin' eBui#ment, li9e the sale of otherarti"les of "ommer"e, does not "onstitute "ontri utory infrin'ement if the#rodu"t is %idely used for le'itimate, uno !e"tiona le #ur#oses, or, indeed, ismerely "a#a le of su stantial noninfrin'in' uses. #. *6* K. S. *3* ** .

(") he re"ord and the =istri"t Court0s ndin's sho% (1) that there is asi'ni "ant li9elihood that su stantial num ers of "o#yri'ht holders %holi"ense their %or9s for road"ast on free tele$ision %ould not o !e"t toha$in' their road"ast time shifted y #ri$ate $ie%ers ( i.e., re"orded at atime %hen the D R o%ner "annot $ie% the road"ast so that it "an e%at"hed at a later time)A and ( ) that there is no li9elihood that time shiftin'%ould "ause nonminimal harm to the #otential mar9et for, or the $alue of,res#ondents0 "o#yri'hted %or9s. he D R0s are therefore "a#a le ofsu stantial noninfrin'in' uses. ri$ate, non"ommer"ial time shiftin' in thehome satis es this standard of noninfrin'in' uses oth e"ause res#ondentsha$e no ri'ht to #re$ent other "o#yri'ht holders from authori-in' su"h timeshiftin' for their #ro'rams and e"ause the =istri"t Court0s ndin's re$ealthat e$en the unauthori-ed home time shiftin' of res#ondents0 #ro'rams isle'itimate fair use. #. ** *L6.

6L/ . d /63, re$ersed.

https://supreme.justia.com/cases/federal/us/464/417/case.html#428


https://supreme.justia.com/cases/federal/us/222/55/case.html




https://supreme.justia.com/cases/federal/us/222/55/case.html




S EDENS, ., deli$ered the o#inion of the Court in %hi"h KRGER, C. ., andRENN&N, F?4 E, and 0C NN R, ., !oined. &CP2KN, ., led a

dissentin' o#inion in %hi"h 2&RS?& , FE , and RE?NQK4S , ., !oined, post, #. *6* K. S. *L7 .

a'e *6* K. S. *1/D#$c4a#("r> J"ial Su#reme Court "ase la% is only found in the #rint$ersion of the Knited States Re#orts. ustia "ase la% is #ro$ided for 'eneralinformational #ur#oses only, and may not reHe"t "urrent le'al de$elo#ments,$erdi"ts or settlements. Fe ma9e no %arranties or 'uarantees a out thea""ura"y, "om#leteness, or adeBua"y of the information "ontained on thissite or information lin9ed to from this site. lease "he"9 oJ"ial sour"es.

IN TH MATT R !8 TH CHARG S A.M. No. 10+7+17+SC!8 9AGIARISM, TC., AGAINSTASS!CIAT USTIC MARIAN! C.D 9 CASTI99!. resent:C R N&, C. J.,C&R 4 ,C&R 4 2 R& ES,

DE &SC , R.,N&C?KR&,

E N&R= =E C&S R ,R4 N,

ER& &,ERS&24N,

=E C&S 4 ,& &=,D4 &R&2&, R.,

EREM,2EN= M&, andSEREN , JJ.

romul'ated:

"to er 1 , +1+>

DE%(S(O1 R CURIAM:

his "ase is "on"erned %ith "har'es that, in #re#arin' a de"ision for theCourt, a desi'nated mem er #la'iari-ed the %or9s of "ertain authors andt%isted their meanin's to su##ort the de"ision.





Th" Bac ro/%& 8ac'$

etitioners 4sa elita C. Dinuya and a out 7+ other elderly %omen, allmem ers of the 2alaya olas r'ani-ation, led %ith the Court in G.R. No.16 3+ a s#e"ial "i$il a"tion of certiorari %ith a##li"ation for #reliminary

mandatory in!un"tion a'ainst the E>e"uti$e Se"retary, the Se"retary of orei'n & airs, the Se"retary of usti"e, and the J"e of the Soli"itorGeneral.

etitioners "laimed that in destroyin' $illa'es in the hili##ines durin' ForldFar 44, the a#anese army systemati"ally ra#ed them and a num er of other%omen, sei-in' them and holdin' them in houses or "ells %here soldiersre#eatedly ra$ished and a used them.

etitioners alle'ed that they ha$e sin"e 1//8 een a##roa"hin' theE>e"uti$e =e#artment, re#resented y the res#ondent #u li" oJ"ials,

reBuestin' assistan"e in lin' "laims a'ainst the a#anese military oJ"ers%ho esta lished the "omfort %omen stations. ut that =e#artment de"lined,sayin' that #etitioners indi$idual "laims had already een fully satis edunder the ea"e reaty et%een the hili##ines and a#an.

etitioners %anted the Court to render !ud'ment, "om#ellin' theE>e"uti$e =e#artment to es#ouse their "laims for oJ"ial a#olo'y and otherforms of re#arations a'ainst a#an efore the 4nternational Court of usti"eand other international tri unals.

n &#ril 8, +1+, the Court rendered !ud'ment dismissin' #etitioners

a"tion. usti"e 2ariano C. del Castillo %rote the de"ision for the Court. heCourt essentially 'a$e t%o reasons for its de"ision: it "annot 'rant the#etition e"ause, Jr$' , the E>e"uti$e =e#artment has the e>"lusi$e#rero'ati$e under the Constitution and the la% to determine %hether toes#ouse #etitioners "laim a'ainst a#anA and, $"co%&, the hili##ines is notunder any o li'ation in international la% to es#ouse their "laims.

n une /, +1+, #etitioners led a motion for re"onsideration of theCourts de"ision. 2ore than a month later on uly 18, +1+, "ounsel for#etitioners, &tty. ?erminio ?arry RoBue, r., announ"ed in his online lo' thathis "lients %ould le a su##lemental #etition detailin' #la'iarism "ommitted

y the "ourt under the $"co%& reason it 'a$e for dismissin' the #etition andthat these stolen #assa'es %ere also t%isted to su##ort the "ourts erroneous"on"lusions that the ili#ino "omfort %omen of Forld Far %o ha$e nofurther le'al remedies. he media 'a$e #u li"ity to &tty. RoBuesannoun"ement.

n uly 1/, +1+, #etitioners led the su##lemental motion for

re"onsideration that &tty. RoBue announ"ed. 4t a""used usti"e =el Castillo of



manifest intelle"tual theft and outri'ht #la'iarism ;1< %hen he %rote thede"ision for the Court and of t%istin' the true intents of the #la'iari-edsour"es to suit the ar'uments of the assailed ud'ment. ; < hey "har'ed

usti"e =el Castillo of "o#yin' %ithout a"9no%led'ement "ertain #assa'esfrom three forei'n arti"les:

a. " $iduciary heory o# Jus Co:ens y E$an . Criddle andE$an o> =es"ent, Iale ournal of 4nternational a% ( ++/)A

. Brea!in: the Silence5 Rape as an International Cri-e y2ar9 Ellis, Case Festern Reser$e ournal of 4nternational a%( ++6)A and

". n#orcin: r:a F-nes F1li:ations y Christian . ams,Cam rid'e Kni$ersity ress ( ++L).

etitioners "laim that the inte'rity of the Courts deli erations in the

"ase has een #ut into Buestion y usti"e =el Castillos fraud. he Courtshould thus address and dis"lose to the #u li" the truth a out the manifestintelle"tual theft and outri'ht #la'iarism ;3< that resulted in 'ross #re!udi"e tothe #etitioners.

e"ause of the #u li"ity that the su##lemental motion forre"onsideration 'enerated, usti"e =el Castillo "ir"ulated a letter to his"ollea'ues, su seBuently $eri ed, statin' that %hen he %rote the de"isionfor the Court he had the intent to attri ute all sour"es used in it. ?e said inthe #ertinent #art:

I' (/$' )" "( ha$#E"& 'ha' 'h"r" a$ "<"r#%'"%'#o% 'o a''r#)/'" a44 $o/rc"$, h"%"<"r &/". A' %oo#%' a$ 'h"r" "<"r a% (a4#c#o/$ #%'"%' 'o a ro r#a'"

a%o'h"r$ or a$ o/r o %. " r"ca44 'ha''h#$ ponencia a$ 'hr#c" #%c4/&"& #% 'h" A "%&a o 'h"Co/r' en "anc. I' a$ &"4#)"ra'"& / o% &/r#% 'h" Ba /#o$"$$#o% o% A r#4 13, 2010, A r#4 20, 2010 a%& #% Ma%#4a o%A r#4 27, 2010. ach '#(", $/ "$'#o%$ "r" (a&" h#ch%"c"$$#'a'"& (aFor r"<#$#o%$ #% 'h" &ra '. So/rc"$ "r"r"+$'/&#"&, &#$c/$$#o%$ (o&#J"&, a$$a "$ a&&"& or&"4"'"&. Th" r"$/4'#% &"c#$#o% co( r#$"$ 3* a "$ #'h7 oo'%o'"$.

= = = = A$ r" ar&$ 'h" c4a#( o 'h" "'#'#o%"r$ 'ha' 'h"

co%c" '$ a$ co%'a#%"& #% 'h" a)o<" or"# % (a'"r#a4$"r" ' #$'"&, 'h" $a(" r"(a#%$ 'h"#r o #%#o% h#ch "

&o %o' %"c"$$ar#4 $har". ;*<

http://sc.judiciary.gov.ph/jurisprudence/2010/october2010/10-7-17-SC.htm#_ftn1










n uly 7, +1+, the Court n Banc referred the "har'es a'ainst usti"e =el Castillo to its Committee on Ethi"s and Ethi"al Standards, "haired

y the Chief usti"e, for in$esti'ation and re"ommendation. he Chief usti"e

desi'nated retired usti"e ose C. Ditu' to ser$e as "onsultant of theCommittee. ?e 'ra"iously a""e#ted.

n &u'ust , +1+, the Committee dire"ted #etitioners to "omment on usti"e =el Castillos $eri ed letter.Fhen this %as done, it set the matter forhearin'.

4n the meantime, on uly 1/, +1+, E$an Criddle %rote on his lo' that

he and his "o author E$an o> =es"ent (referred to !ointly as Criddle=es"ent) learned of alle'ed #la'iarism in$ol$in' their %or9 ut Criddles"on"ern, after readin' the su##lemental motion for re"onsideration, %as the

Courts "on"lusion that #rohi itions a'ainst se>ual sla$ery are not =usco:ens or internationally indin' norms that treaties "annot diminish.

n uly 3, +1+, =r. 2ar9 Ellis %rote the Court e>#ressin' "on"ern thatin mentionin' his %or9, the Court may ha$e misread the ar'ument ;he<made in the arti"le and em#loyed them for "ross #ur#oses. =r. Ellis said thathe %rote the arti"le #re"isely to ar'ue for a##ro#riate le'al remedy for$i"tims of %ar "rimes.

n &u'ust 8, +1+, after the referral of the matter to the Committeefor in$esti'ation, the =ean of the Kni$ersity of the hili##ines (K. .) Colle'e

of a% #u li"i-ed a Statement from his fa"ulty, "laimin' thatthe 2inuya de"ision %as an e>traordinary a"t of in!usti"e and a sin'ularlyre#rehensi le a"t of dishonesty and misre#resentation y the ?i'hest Courtof the land. he statement said that usti"e =el Castillo had a deli erateintention to a##ro#riate the ori'inal authors %or9, and that the Courtsde"ision amounted to an a"t of intelle"tual fraud y "o#yin' %or9s in orderto mislead and de"ei$e. ;L<

n &u'ust 18, +1+ 2r. Christian . ams %rote Chief usti"e Renato C.

Corona that, althou'h rele$ant senten"es in the Courts de"ision %ere ta9enfrom his %or9, he %as 'i$en 'eneri" referen"e only in the footnote and in"onne"tion %ith a "itation from another author ( runo Simma) rather than%ith res#e"t to the #assa'es ta9en from his %or9. ?e thou'ht that the formof referen"in' %as ina##ro#riate. 2r. ams %as also "on"erned that thede"ision may ha$e used his %or9 to su##ort an a##roa"h to er:ao-nes "on"e#t (o li'ations o%ed y indi$idual States to the "ommunity of nations) that is not "onsistent %ith %hat he ad$o"ated.





n &u'ust 6, +1+, the Committee heard the #arties su missions in thesummary manner of administrati$e in$esti'ations. Counsels from oth sides%ere 'i$en am#le time to address the Committee and su mit theire$iden"e. he Committee Bueried them on these.

Counsels for usti"e =el Castillo later as9ed to e heard %ith the other#arties not in attendan"e so they "ould ma9e su missions that their "lientre'arded as sensiti$e and "on dential, in$ol$in' the draftin' #ro"ess that%ent into the ma9in' of the Courts de"ision in the 2inuya "ase. etitioners"ounsels $i'orously o !e"ted and the Committee sustained theo !e"tion. &fter "onsultin' usti"e =el Castillo, his "ounsels reBuested theCommittee to hear the usti"es "ourt resear"her, %hose name need not ementioned here, e>#lain the resear"h %or9 that %ent into the ma9in' of thede"ision in the 2inuya "ase. he Committee 'ranted the reBuest.

he resear"her demonstrated y o%er oint #resentation ho% the

attri ution of the lifted #assa'es to the %ritin's of Criddle =es"ent and Ellis,found in the e'innin' drafts of her re#ort to usti"e =el Castillo, %ereunintentionally deleted. She tearfully e>#ressed remorse at her 'rie$ousmista9e and 'rief for ha$in' "aused an enormous amount of su erin' for

usti"e =el Castillo and his family. ;6<

n the other hand, addressin' the Committee in rea"tion to the

resear"hers e>#lanation, "ounsel for #etitioners insisted that la"9 of intent isnot a defense in #la'iarism sin"e all that is reBuired is for a %riter toa"9no%led'e that "ertain %ords or lan'ua'e in his %or9 %ere ta9en fromanothers %or9. Counsel in$o9ed the Courts rulin' in /niversity o# the

Philippines Board o# Re:ents v. Court o# "ppeals and "ro!ias&a-y Willia-Mar:aret Celine , ;7<ar'uin' that standards on #la'iarism in the a"ademeshould a##ly %ith more for"e to the !udi"iary.

&fter the hearin', the Committee 'a$e the #arties ten days to le their

res#e"ti$e memoranda. hey led their memoranda in due"ourse. Su seBuently after deli eration, the Committee su mitted itsunanimous ndin's and re"ommendations to the Court.

Th" I$$/"$

his "ase #resents t%o issues: 1. Fhether or not, in %ritin' the o#inion for the Court in the 2inuya "ase,

usti"e =el Castillo #la'iari-ed the #u lished %or9s of authors ams, Criddle=es"ent, and Ellis.







. Fhether or not usti"e =el Castillo t%isted the %or9s of these authors toma9e it a##ear that su"h %or9s su##orted the Courts #osition inthe 2inuya de"ision.

Th" Co/r'$ R/4#% $

e"ause of the #endin' motion for re"onsideration in the 2inuya "ase, theCourt li9e its Committee on Ethi"s and Ethi"al Standards %ill #ur#osely a$oidtou"hin' the merits of the Courts de"ision in that "ase or the soundness orla"9 of soundness of the #osition it has so far ta9en in the same. he Court%ill deal, not %ith the essential merit or #ersuasi$eness of the forei'nauthors %or9s, ut ho% the de"ision that usti"e =el Castillo %rote for theCourt a##ro#riated #arts of those %or9s and for %hat #ur#ose the de"isionem#loyed the same.

&t its most asi", #la'iarism means the theft of another #ersons

lan'ua'e, thou'hts, or ideas. o #la'iari-e, as it is "ommonly understooda""ordin' to Fe ster, is to ta9e (ideas, %ritin's, et".) from (another) and#ass them o as ones o%n. ;8< he #assin' o of the %or9 of another as oneso%n is thus an indis#ensa le element of #la'iarism. Th" a$$a "$ ro( Ta($

etitioners #oint out that the 2inuya de"ision lifted #assa'es from amsoo9, n#orcin: r:a F-nes F1li:ations in International %a& ( 88H) and

used them in ootnote 6/ %ith %hat the author thou'ht %as a mere 'eneri"referen"e. ut, althou'h ams himself may ha$e elie$ed that the footnotin'

in this "ase %as not an a##ro#riate form of referen"in',;/<

he and #etitioners"annot deny that the de"ision did attri ute the sour"e or sour"es of su"h#assa'es. usti"e =el Castillo did not #ass o ams %or9 as his o%n. he

usti"e #rimarily attri uted the ideas em odied in the #assa'es to runoSimma, %hom ams himself "redited for them. Still, ootnote 6/ mentioned,a#art from Simma, ams arti"le as another sour"e of those ideas.

he Court elie$es that %hether or not the footnote is suJ"iently

detailed, so as to satisfy the footnotin' standards of "ounsel for #etitioners isnot an ethi"al matter ut one "on"ernin' "larity of %ritin'. hestatement See ams, Enfor"in' li'ations r:a F-nes in 4nternational a%( ++L) in the 2inuya de"ision is an attri ution no matter if ams thou'ht thatit 'a$e him some%hat less "redit than he deser$ed. Su"h attri utionalto'ether ne'ates the idea that usti"e =el Castillo #assed o the"hallen'ed #assa'es as his o%n.

hat it %ould ha$e een etter had usti"e =el Castillo used the

introdu"tory #hrase cited in rather than the #hrase See %ould ma9e a "ase of mere inad$ertent sli# in attri ution rather than a "ase of manifest intelle"tual







theft and outri'ht #la'iarism. 4f the usti"es "itations %ere im#re"ise, it %ould !ust e a "ase of ad footnotin' rather than one of theft or de"eit. 4f it %ereother%ise, many %ould e tar'et of a use for e$ery editorial error, for e$erymista9e in "itin' #a'ination, and for e$ery te"hni"al detail of form.

Th" a$$a "$ ro( 44#$a%& Cr#&&4"+D"$c"%'

etitioners also atta"9 the Courts de"ision for liftin' and usin' asfootnotes, %ithout attri ution to the author, #assa'es from the #u lished%or9 of Ellis. he Court made the follo%in' statement on #a'e 7 of itsde"ision, mar9ed %ith ootnote 6L at the end:

" /44 a r"" 'ha' ra ", $"=/a4 $4a<"r , 'or'/r", a%&

$"=/a4 <#o4"%c" ar" (ora44 r" r"h"%$#)4" a$ "44 a$ 4" a44roh#)#'"& /%&"r co%'"( orar #%'"r%a'#o%a4 4a . 65 ===

ootnote 6L a##ears do%n the ottom of the #a'e. Sin"e the len'thy

#assa'es in that footnote "ame almost $er atim from Ellis arti"le, ;1+< su"h#assa'es ou'ht to ha$e een introdu"ed y an a"9no%led'ement that theyare from that arti"le. he footnote "ould $ery %ell ha$e read:

65 I% a% ar'#c4", 5rea3ing the Si$ence: &ape as an(nternationa$ %rime , Ca$" "$'"r% R"$"r<" o/r%a4 o I%'"r%a'#o%a4 9a :2006;, Mar 44#$ $a#&> he "on"e#t of ra#e as an international "rime is relati$ely ne%. his is not to say

that ra#e has ne$er een histori"ally #rohi ited, #arti"ularly in%ar. ut modern day sensiti$ity to the "rime of ra#e did notemer'e until after Forld Far 44. 4n the Nurem er' Charter, the%ord ra#e %as not mentioned. he arti"le on "rimes a'ainsthumanity e>#li"itly set forth #rohi ited a"ts, ut ra#e %as notmentioned y name. ( or e>am#le, the reaty of &mity andCommer"e et%een russia and the Knited States #ro$ides thatin time of %ar all %omen and "hildren shall not e molested intheir #ersons. he reaty of &mity and Commer"e, et%een his2a!esty the Pin' of russia and the Knited States of &meri"a, art.

3, Se#t. 1+, 178L, K.S. russ., 8 RE& 4ES O ?ER 4N 0&GREE2EN S ?E K.S. 78, 8L. he 1863 ie er 4nstru"tions"lassi ed ra#e as a "rime of troo# dis"i#line.(2it"hell, he Prohi1ition o# Rape in International 0u-anitarian%a& as a @or- o# Jus co:ens5 Clari#yin: the 6octrine , 1L =KPE .C 2 . 4N . . 1/, * ). 4t s#e"i ed ra#e as a "a#ital "rime#unisha le y the death #enalty ( Id. at 36). he 1/+7 ?a'ueCon$ention #rote"ted %omen y reBuirin' the #rote"tion of theirhonour. ( amily honour and ri'hts, the li$es of #ersons, and


http://international.westlaw.com/Find/Default.wl?rs=dfa1.0&vr=2.0&DB=101272&FindType=Y&ReferencePositionType=S&SerialNum=0304982083&ReferencePosition=224





http://international.westlaw.com/Find/Default.wl?rs=dfa1.0&vr=2.0&FindType=Y&SerialNum=0304982083










#ri$ate #ro#erty, as %ell as reli'ious "on$i"tions and #ra"ti"e,must e res#e"ted. Con$ention (4D) Res#e"tin' the a%s OCustoms of Far on and, art. *6, "t. 18, 1/+7. General&ssem ly resolution /L (4) of =e"em er 11, 1/*6 entitled,&Jrmation of the rin"i#les of 4nternational a% re"o'ni-ed y

the Charter of the Nrn er' ri unalA General &ssem ly do"ument&@6*@&dd.1 of 1/*6ASee &'reement for the rose"ution andunishment of the 2a!or Far Criminals of the Euro#ean &>is,

&u'. 8, 1/*L, L/ Stat. 1L**, 8 K.N. .S. 7/. &rti"le 6(") of theCharter esta lished "rimes a'ainst humanity as the follo%in':

CR42ES &G&4NS ?K2&N4 I: namely, murder,e>termination, ensla$ement, de#ortation, and otherinhumane a"ts "ommitted a'ainst any "i$ilian #o#ulation,

efore or durin' the %ar, or #erse"utions on #oliti"al, ra"ialor reli'ious 'rounds in e>e"ution of or in "onne"tion %ithany "rime %ithin the urisdi"tion of the ri unal, %hether or

not in $iolation of the domesti" la% of the "ountry %here#er#etrated. he Nurem er' ud'ment did not ma9e any referen"e to ra#eand ra#e %as not #rose"uted. ( ud'e Ga rielle Pir92"=onald, he International Cri-inal ri1unals Cri-e andPunish-ent in the International "rena, 7 4 S& . 4N . C 2 . .667, 676.) ?o%e$er, 4nternational 2ilitary ri unal for the arEast #rose"uted ra#e "rimes, e$en thou'h its Statute did note>#li"itly "riminali-e ra#e. he ar East ri unal held General4%ane 2atsui, Commander Shunro9u ?ata and orei'n2inister ?irota "riminally res#onsi le for a series of "rimes,

in"ludin' ra#e, "ommitted y #ersons under their authority.( ?E PI K=G2EN : K=G2EN ?E 4N ERN& 4 N&24 4 &RI R4 KN& R ?E &R E&S **L L* (1/77). he rst mention of ra#e as a s#e"i " "rime "ame in=e"em er 1/*L %hen Control Coun"il a% No. 1+ in"luded theterm ra#e in the de nition of "rimes a'ainst humanity. a%No. 1+, ado#ted y the four o""u#yin' #o%ers in Germany,%as de$ised to esta lish a uniform asis for #rose"utin' %ar"riminals in German "ourts. (Control Coun"il for Germany, a%No. 1+: unishment of ersons Guilty of Far Crimes, Crimes&'ainst ea"e and &'ainst ?umanity, =e". +, 1/*L, 3 J"ialGa-ette Control Coun"il for Germany L+, L3 (1/*6)) he 1/*/ Gene$a Con$ention Relati$e to the reatment of

risoners of Far %as the rst modern day internationalinstrument to esta lish #rote"tions a'ainst ra#e for %omen.Gene$a Con$ention Relati$e to the rote"tion of Ci$ilian

ersons in ime of Far, &u'. 1 , 1/*/, art. 7, 6 K.S. . 3316 ,7L K.N. .S. 87 (entry into for"e "t. +, 1/L+) ;hereinafter

ourth Gene$a Con$ention<. urthermore, the 4CC, the 4C I,






http://international.westlaw.com/Find/Default.wl?rs=dfa1.0&vr=2.0&DB=0006792&FindType=Y&SerialNum=1956056356




http://international.westlaw.com/Find/Default.wl?rs=dfa1.0&vr=2.0&DB=0006792&FindType=Y&SerialNum=1956056356



and the 4nternational Criminal ri unal for R%anda (4C R) ha$esi'ni "antly ad$an"ed the "rime of ra#e y ena lin' it to e#rose"uted as 'eno"ide, a %ar "rime, and a "rime a'ainsthumanity.

ut, as it ha##ened, the a"9no%led'ment a o$e or a similarintrodu"tion %as missin' from ootnote 6L. Ne>t, #etitioners also #oint out that the follo%in' ei'ht senten"es and

their a""om#anyin' footnotes a##ear in te>t on #a'es 3+ 3 of the 2inuya de"ision:

=== I% #%'"r%a'#o%a4 4a , 'h" '"r( 6uscogens :4#'"ra44 , co( "44#% 4a ; r" "r$ 'o %or($ 'ha'co((a%& "r"( 'or a/'hor#' , $/ "r$"&#% co% #c'#%'r"a'#"$ a%& c/$'o(. Jus cogens %or($ ar" co%$#&"r"&

"r"( 'or #% 'h" $"%$" 'ha' 'h" ar" (a%&a'or , &o %o'

a&(#' &"ro a'#o%, a%& ca% )" (o&#J"& o%4 ) "%"ra4#%'"r%a'#o%a4 %or($ o " /#<a4"%' a/'hor#' . 71

ar4 $'ra#%$ o 'h" 6us cogens &oc'r#%" ha<" "=#$'"& $#%c"'h" 1700$, 72 )/' "r"( 'or %or($ )" a% 'o a''rac' r"a'"r$cho4ar4 a''"%'#o% #'h 'h" /)4#ca'#o% o A4 r"& <o%

"r&ro$$O$ #% /"%'#a4 1-37 ar'#c4", 8or)#&&"% Tr"a'#"$ #%I%'"r%a'#o%a4 9a . 73 Th" r"co %#'#o% o 6us cogens a#%"&"<"% (or" orc" #% 'h" 1-50$ a%& 1-60$ #'h 'h" I9C$

r" ara'#o% o 'h" #"%%a Co%<"%'#o% o% 'h" 9a o Tr"a'#"$: C9T;. 7* Tho/ h 'h"r" a$ a co%$"%$/$ 'ha' c"r'a#%

#%'"r%a'#o%a4 %or($ ha& a''a#%"& 'h" $'a'/$ o 6uscogens ,75 'h" I9C a$ /%a)4" 'o r"ach a co%$"%$/$ o% 'h"

ro "r cr#'"r#a or #&"%'# #% "r"( 'or %or($. A '"r a% "='"%&"& &")a'" o<"r 'h"$" a%& o'h"r 'h"or#"$o 6us cogens , 'h" I9C co%c4/&"& r/" /44 #% 1-63 'ha''h"r" #$ %o' a$ "' a% "%"ra44 acc" '"& cr#'"r#o% )

h#ch 'o #&"%'# a "%"ra4 r/4" o #%'"r%a'#o%a4 4a a$ha<#% 'h" charac'"r o 6us cogens .76 I% a co(("%'aracco( a% #% 'h" &ra ' co%<"%'#o%, 'h" I9C #%&#ca'"&'ha' 'h" r/&"%' co/r$" $""($ 'o )" 'o = = = 4"a<" 'h" /44co%'"%' o 'h#$ r/4" 'o )" or "& o/' #% S'a'" rac'#c" a%&#% 'h" F/r#$ r/&"%c" o #%'"r%a'#o%a4 'r#)/%a4$. 77 Th/$,

h#4" 'h" "=#$'"%c" o 6us cogens #% #%'"r%a'#o%a4 4a #$/%&#$ /'"&, %o co%$"%$/$ "=#$'$ o% #'$$/)$'a%c", 77 )" o%& a '#% cor" o r#%c# 4"$ a%& r/4"$. 7



&dmittedly, the 2inuya de"ision lifted the a o$e, in"ludin' theirfootnotes, from Criddle =es"ents arti"le, " $iduciary heory o# Jus Co:ens .;11< Criddle =es"ents footnotes %ere "arried into the 2inuya de"isions o%nfootnotes ut no attri utions %ere made to the t%o authors in thosefootnotes.

Th" = 4a%a'#o% Knless am#ly e>#lained, the a o$e liftin' from the %or9s of Ellis and

Criddle =es"ent "ould e "onstrued as #la'iarism. ut one of usti"e =elCastillos resear"hers, a "ourt em#loyed attorney, e>#lained ho% shea""identally deleted the attri utions, ori'inally #lanted in the e'innin'drafts of her re#ort to him, %hi"h re#ort e$entually e"ame the %or9in' draftof the de"ision. She said that, for most #arts, she did her resear"hele"troni"ally. or international materials, she sour"ed these mainly fromFestla%, an online resear"h ser$i"e for le'al and la% related materials to

%hi"h the Court su s"ri es. 4n the old days, the "ommon #ra"ti"e %as that after a usti"e %ould

ha$e assi'ned a "ase for study and re#ort, the resear"her %ould sour"e hismaterials mostly from a$aila le la% oo9s and #u lished arti"les on#rint. Fhen he found a rele$ant item in a oo9, %hether for one side of theissue or for the other, he %ould #la"e a stri# of #a#er mar9er on thea##ro#riate #a'e, #en"il mar9 the item, and #la"e the oo9 on his des9%here other rele$ant oo9s %ould ha$e #iled u#. ?e %ould later #ara#hraseor "o#y the mar9ed out #assa'es from some of these oo9s as he ty#ed hismanus"ri#t on a manual ty#e%riter. his o""asion %ould 'i$e him a "lear

o##ortunity to attri ute the materials used to their authors or sour"es. Fith the ad$ent of "om#uters, ho%e$er, as usti"e =el Castillos

resear"her also e>#lained, most le'al referen"es, in"ludin' the "olle"tion of de"isions of the Court, are found in ele"troni" dis9ettes or in internet%e sites that o er $irtual li raries of oo9s and arti"les. ?ere, as theresear"her found items that %ere rele$ant to her assi'nment, shedo%nloaded or "o#ied them into her main manus"ri#t, a smor'as ord #lateof materials that she thou'ht she mi'ht need. he resear"hers te"hniBue inthis "ase is not too far di erent from that em#loyed y a "ar#enter. he"ar#enter rst 'ets the #ie"es of lum er he %ould need, "hoosin' the 9indsand si-es suita le to the o !e"t he has in mind, say a ta le. Fhen ready, he%ould measure out the #ortions he needs, "ut them out of the #ie"es of lum er he had "olle"ted, and "onstru"t his ta le. ?e %ould 'et rid of thes"ra#s.

?ere, usti"e =el Castillos resear"her did !ust that. She ele"troni"ally

"ut rele$ant materials from oo9s and !ournals in the Festla% %e site and#asted these to a main manus"ri#t in her "om#uter that "ontained the issues





for dis"ussion in her #ro#osed re#ort to the usti"e. She used the 2i"rosoftFord #ro'ram. ;1 < ater, after she de"ided on the 'eneral sha#e that herre#ort %ould ta9e, she e'an #runin' from that manus"ri#t those materialsthat did not t, "han'in' the #ositions in the 'eneral s"heme of those thatremained, and addin' and deletin' #ara'ra#hs, senten"es, and %ords as her

"ontinuin' dis"ussions %ith usti"e =el Castillo, her "hief editor,demanded. arentheti"ally, this is the standard s"heme that "om#uterliterate "ourt resear"hers use e$eryday in their %or9.

usti"e =el Castillos resear"her sho%ed the Committee the early drafts

of her re#ort in the 2inuya "ase and these in"luded the #assa'es lifted fromthe se#arate arti"les of Criddle =es"ent and of Ellis %ith #ro#er attri utionsto these authors. ut, as it ha##ened, in the "ourse of editin' and "leanin'u# her draft, the resear"her a""identally deleted the attri utions. 8#r$' 8#%&#%

he Court ado#ts the Committees ndin' that the resear"herse>#lanation re'ardin' the a""idental remo$al of #ro#er attri utions to thethree authors is "redi le. Gi$en the o#erational #ro#erties of the 2i"rosoft#ro'ram in use y the Court, the a""idental de"a#itation of attri utions tosour"es of resear"h materials is not remote.

or most senior la%yers and !ud'es %ho are not "om#uter literate, a

familiar e>am#le similar to the "ir"umstan"es of the #resent "ase %ould#ro a ly hel# illustrate the li9elihood of su"h an a""ident ha##enin'. 4f resear"her , for e>am#le, ha##ens to e interested in the inaliena le

"hara"ter of !uridi"al #ersonality in "onne"tion %ith an assi'nment and if theoo9 of the learned Ci$ilist, &rturo 2. olentino, ha##ens to ha$e een#u lished in a %e site, resear"her %ould #ro a ly sho% interest in thefollo%in' #assa'e from that oo9:

=== Bo'h F/r#&#ca4 ca ac#' a%& ca ac#' 'o ac' ar"

%o' r# h'$, )/' /a4#'#"$ o "r$o%$L h"%c", 'h" ca%%o')" a4#"%a'"& or r"%o/%c"&.15

=== ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 15 3 o% T/hr 2-6L 1 a4<"r&" 2-1.

e"ause the senten"e has a footnote mar9 ( P15; that attri utes the idea toother sour"es, it is e$ident that olentino did not ori'inate it. he idea is nota #rodu"t of his intelle"t. ?e merely lifted it from Don uhr and Dal$erde, t%ore#uta le forei'n authors.





Fhen resear"her "o#ies and #astes the a o$e #assa'e and its footnoteinto a manus"ri#t in the ma9in' in his "om#uter, the footnote num er %ould,'i$en the "om#uter #ro'ram in use, automati"ally "han'e and ad!ust to thefootnotin' seBuen"e of resear"her s manus"ri#t. hus, if the #re"edin'footnote in the manus"ri#t %hen the #assa'e from olentino %as #asted on it

is 3, olentinos footnote %ould automati"ally "han'e from the ori'inalootnote 1L to ootnote *.

ut then, to e of use in his materials 'atherin' s"heme, resear"her %ould ha$e to ta' the olentino #assa'e %ith a short des"ri#tion of itssu !e"t for easy referen"e. & suita le su !e"t des"ri#tion %ould e: heinaliena1le character o# =uridical personality .23 he footnote mar9, 23 8ro(To4"%'#%o, %hi"h resear"her atta"hes to the su !e"t ta', ser$es asreminder to him to attri ute the #assa'e in its nal form to olentino. &fterthe #assa'e has een ta''ed, it %ould no% a##ear li9e this:

The ina$iena"$e character of 6uridica$ persona$it'. 23 === Bo'h F/r#&#ca4 ca ac#' a%& ca ac#' 'o ac' ar"

%o' r# h'$, )/' /a4#'#"$ o "r$o%$L h"%c", 'h" ca%%o')" a4#"%a'"& or r"%o/%c"&.2*

=== ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 23 8ro( To4"%'#%o.2* 3 o% T/hr 2-6L 1 a4<"r&" 2-1.

he ta' is of "ourse tem#orary and %ould later ha$e to 'o. 4t ser$esut a mar9er to hel# resear"her maneu$er the #assa'e into the ri'ht s#otin his nal manus"ri#t.

he mista9e of usti"e =el Castillos resear"her is that, after the usti"ehad de"ided %hat te>ts, #assa'es, and "itations %ere to e retainedin"ludin' those from Criddle =es"ent and Ellis, and %hen she %as already"leanin' u# her %or9 and deletin' all su !e"t ta's, she unintentionallydeleted the footnotes that %ent %ith su"h ta's%ith disastrous e e"t.

o understand this, in olentinos e>am#le, the eBui$alent %ould e

resear"her s remo$al durin' "leanu# of the ta', he inaliena1le character

o# =uridical personality. 23 , y a sim#le delete o#eration, and the unintendedremo$al as %ell of the a""om#anyin' footnote :P23; . he erasure of thefootnote eliminates the lin9 et%een the lifted #assa'e and its sour"e,

olentinos oo9. nly the follo%in' %ould remain in the manus"ri#t:

=== Bo'h F/r#&#ca4 ca ac#' a%& ca ac#' 'o ac' ar"%o' r# h'$, )/' /a4#'#"$ o "r$o%$L h"%c", 'h" ca%%o')" a4#"%a'"& or r"%o/%c"&.*3



^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ *3 3 o% T/hr 2-6L 1 a4<"r&" 2-1.

&s it ha##ened, the 2i"rosoft %ord #ro'ram does not ha$e a fun"tion

that raises an alarm %hen ori'inal materials are "ut u# or #runed. he#ortions that remain sim#ly lend in %ith the rest of the manus"ri#t,ad!ustin' the footnote num er and remo$in' any "lue that %hat should sti"9to'ether had !ust een se$ered.

his %as %hat ha##ened in the attri utions to Ellis and Criddle

=es"ent. he resear"her deleted the su !e"t ta's and, a""identally, theira""om#anyin' footnotes that ser$ed as reminder of the sour"es of the lifted#assa'es. Fith 11/ sour"es "ited in the de"ision, the loss of the of them%as not easily dete"ta le.

etitioners #oint out, ho%e$er, that usti"e =el Castillos $eri ed letterof uly , +1+ is in"onsistent %ith his resear"hers "laim that the omissions%ere mere errors in attri ution. hey "ite the fa"t that the usti"e did notdis"lose his resear"hers error in that letter des#ite the latters "onfessionre'ardin' her mista9e e$en efore the usti"e sent his letter to the Chief

usti"e. y denyin' #la'iarism in his letter, usti"e =el Castillo alle'edly#er!ured himself and sou'ht to %hite%ash the "ase. ;13<

ut nothin' in the uly letter su##orts the "har'e of false testimony.

usti"e =el Castillo merely e>#lained that there %as e$ery intention toattri ute all sour"es %hene$er due and that there %as ne$er any mali"ious

intent to a##ro#riate anothers %or9 as our o%n, %hi"h as it turns out is a truestatement. ?e re"alled ho% the Court deli erated u#on the "ase more thanon"e, #rom#tin' ma!or re$isions in the draft of the de"ision. 4n the #ro"ess,(s)our"es %ere re studied, dis"ussions modi ed, #assa'es added ordeleted. Nothin' in the letter su''ests a "o$er u#. 4ndeed, it did not #re"ludea resear"hers inad$ertent error.

&nd it is understanda le that usti"e =el Castillo did not initially

dis"lose his resear"hers error. ?e %rote the de"ision for the Court and %ase>#e"ted to ta9e full res#onsi ility for any la#se arisin' from its#re#aration. Fhat is more, the #ro"ess of draftin' a #arti"ular de"ision forthe Court is "on dential, %hi"h e>#lained his initial reBuest to e heard onthe matter %ithout the attendan"e of the other #arties.

Nota ly, neither usti"e =el Castillo nor his resear"her had a moti$e or

reason for omittin' attri ution for the lifted #assa'es to Criddle =es"ent or toEllis. he latter authors are hi'hly res#e"ted #rofessors of internationalla%. he la% !ournals that #u lished their %or9s ha$e e>"e#tionalre#utations. 4t did not ma9e sense to intentionally omit attri ution to these





authors %hen the de"ision "ites an a undan"e of other sour"es. Citin' theseauthors as the sour"es of the lifted #assa'es %ould enhan"e rather thandiminish their informati$e $alue. oth usti"e =el Castillo and his resear"her'ain nothin' from the omission. hus, the failure to mention the %or9s of Criddle =e"ent and Ellis %as unBuestiona ly due to inad$erten"e or #ure

o$ersi'ht. etitioners of "ourse insist that intent is not material in "ommittin'

#la'iarism sin"e all that a %riter has to do, to a$oid the "har'e, is to en"loselifted #ortions %ith Buotation mar9s and a"9no%led'e the sour"es from%hi"h these %ere ta9en. ;1*< etitioners #oint out that the Court should a##lyto this "ase the rulin' in /niversity o# the Philippines Board o# Re:ents v.Court o# "ppeals and "ro!ias&a-y Willia- Mar:aret Celine . ;1L< hey ar'uethat standards on #la'iarism in the a"ademe should a##ly %ith more for"e tothe !udi"iary.

ut #etitioners theory i'nores the fa"t that #la'iarism is essentially aform of fraud %here intent to de"ei$e is inherent. heir theory #ro$ides noroom for errors in resear"h, an unrealisti" #osition "onsiderin' that there ishardly any su stantial %ritten %or9 in any eld of dis"i#line that is free of any mista9e. he theory #la"es an automati" uni$ersal "urse e$en on errorsthat, as in this "ase, ha$e reasona le and lo'i"al e>#lanations.

4ndeed, the 8 th edition of la"9s a% =i"tionary de nes #la'iarism as

the deli erate and 9no%in' #resentation of another #erson0s ori'inal ideas or"reati$e e>#ressions as one0s o%n. ;16< hus, #la'iarism #resu##oses intentand a deli erate, "ons"ious e ort to steal anothers %or9 and #ass it o as

ones o%n. esides, the Court said nothin' in /.P. Board o# Re:ents that %ould

indi"ate that an intent to #ass o anothers %or9 as ones o%n is not reBuiredin #la'iarism. he Court merely aJrmed the a"ademi" freedom of auni$ersity to %ithdra% a masters de'ree that a student o tained ased one$iden"e that she misa##ro#riated the %or9 of others, #assin' them o asher o%n. his is not the "ase here sin"e, as already stated, usti"e =elCastillo a"tually im#uted the orro%ed #assa'es to others.

S"co%& 8#%&#%

he Court also ado#ts the Committees ndin' that the omission of attri utions to Criddle =es"ent and Ellis did not rin' a out an im#ressionthat usti"e =el Castillo himself "reated the #assa'es that he lifted from their#u lished arti"les. hat he merely 'ot those #assa'es from others remainsself e$ident, des#ite the a""idental deletion. he fa"t is that he still im#uted









the #assa'es to the sour"es from %hi"h Criddle =es"ent and Ellis orro%edthem in the rst #la"e.

his is est illustrated in the familiar e>am#le a o$e. &fter the deletion

of the su !e"t ta' and, a""identally, its footnote %hi"h "onne"ts to the

sour"e, the lifted #assa'e %ould a##ear li9e this:=== Bo'h F/r#&#ca4 ca ac#' a%& ca ac#' 'o ac' ar"%o' r# h'$, )/' /a4#'#"$ o "r$o%$L h"%c", 'h" ca%%o')" a4#"%a'"& or r"%o/%c"&.*3

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ *3 3 o% T/hr 2-6L 1 a4<"r&" 2-1.

&lthou'h the unintended deletion se$ered the #assa'es lin9 to olentino, the #assa'e remains to e attri uted to Don uhr and Dal$erde, theori'inal sour"es that olentino himself "ites. he te>t and its footnote

referen"e "an"el out any im#ression that the #assa'e is a "reation of resear"her . 4t is the same %ith the #assa'es from Criddle =es"ent andEllis. e"ause su"h #assa'es remained attri uted y the footnotes to theauthors ori'inal sour"es, the omission of attri utions to Criddle =es"ent andEllis 'a$e no im#ression that the #assa'es %ere the "reations of usti"e =elCastillo. his %holly ne'ates the idea that he %as #assin' them o as hiso%n thou'hts.

rue the su !e"t #assa'es in this "ase %ere re#rodu"ed inthe 2inuya de"ision %ithout #la"in' them in Buotation mar9s. ut su"h#assa'es are mu"h unli9e the "reati$e line from Ro ert rost, ;17< he %oods

are lo$ely, dar9, and dee#, ut 4 ha$e #romises to 9ee#, and miles to 'oefore 4 slee#, and miles to 'o efore 4 slee#. he #assa'es here "onsisted of "ommon de nitions and terms, a rid'ed history of "ertain #rin"i#les of la%,and similar freBuently re#eated #hrases that, in the %orld of le'al literature,already elon' to the #u li" realm.

o #ara#hrase ast and Samuels, ;18< %hile the a"ademi" #u lishin'

model is ased on the ori'inality of the %riters thesis, the !udi"ial system isased on the do"trine of stare decisis , %hi"h en"oura'es "ourts to "ite

histori"al le'al data, #re"edents, and related studies in their de"isions. he !ud'e is not e>#e"ted to #rodu"e ori'inal s"holarshi# in e$ery res#e"t. hestren'th of a de"ision lies in the soundness and 'eneral a""e#tan"e of the#re"edents and lon' held le'al o#inions it dra%s from.

Th#r& 8#%&#%

etitioners alle'e that the de"ision t%isted the #assa'es from ams,

Criddle =es"ent, and Ellis. he Court ado#ts the Committees ndin' that thisis not so. 4ndeed, this alle'ation of t%istin' or misre#resentation remains a







mystery to the Court. o t%ist means to distort or #er$ert the meanin' of.;1/< or e>am#le, if one lifts the lyri"s of the National &nthem, uses it in his%or9, and de"lares that ose alma %ho %rote it did not lo$e his "ountry,then there is t%istin' or misre#resentation of %hat the anthems lyri"ssaid. ?ere, nothin' in the 2inuya de"ision said or im#lied that, ased on the

lifted #assa'es, authors ams, Criddle =es"ent, and Ellis su##orted theCourts "on"lusion that the hili##ines is not under any o li'ation ininternational la% to es#ouse Dinuya et al.s "laims.

he fa"t is that, Jr$' , sin"e the attri utions to Criddle =es"ent and Ellis

%ere a""identally deleted, it is im#ossi le for any #erson readin' thede"ision to "onne"t the same to the %or9s of those authors as to "on"ludethat in %ritin' the de"ision usti"e =el Castillo t%isted their intendedmessa'es. &nd, $"co%&, the lifted #assa'es #ro$ided mere a"9'round fa"tsthat esta lished the state of international la% at $arious sta'es of itsde$elo#ment. hese are neutral data that "ould su##ort "onHi"tin' theories

re'ardin' %hether or not the !udi"iary has the #o%er today to order theE>e"uti$e =e#artment to sue another "ountry or %hether the duty to#rose"ute $iolators of international "rimes has attained the status of =usco:ens .

Considerin' ho% it %as im#ossi le for usti"e =el Castillo to ha$et%isted the meanin' of the #assa'es he lifted from the %or9s of ams,Criddle =es"ent, and Ellis, the "har'e of t%istin' or misre#resentationa'ainst him is to say the least, un9ind. o e more a""urate, ho%e$er, the"har'e is re"9less and o tuse.

No M#$co%&/c' n o""asions !ud'es and !usti"es ha$e mista9enly "ited the %ron'

sour"es, failed to use Buotation mar9s, inad$ertently omitted ne"essaryinformation from footnotes or endnotes. ut these do not, in e$ery "ase,amount to mis"ondu"t. nly errors that are tainted %ith fraud, "orru#tion, ormali"e are su !e"t of dis"i#linary a"tion. ; +< his is not the "ase here. usti"e=el Castillos a"ts or omissions %ere not sho%n to ha$e een im#elled y anyof su"h disre#uta le moti$es . ; 1< 4f the rule %ere other%ise, no !ud'e or

!usti"e, ho%e$er "om#etent, honest, or dedi"ated he may e, "an e$er ho#eto retire from the !udi"iary %ith an un lemished re"ord. ; <

No I%"=c/$a)4" N" 4# "%c"

inally, #etitioners assert that, e$en if they %ere to "on"ede that theomission %as the result of #lain error, usti"e =el Castillo is nonetheless'uilty of 'ross ine>"usa le ne'li'en"e. hey #oint out that he has full "ontroland su#er$ision o$er his resear"her and should not ha$e surrendered the%ritin' of the de"ision to the latter. ; 3<













ut this assumes that usti"e =el Castillo a di"ated the %ritin' of

the 2inuya de"ision to his resear"her, %hi"h is "ontrary to the e$iden"eaddu"ed durin' the hearin'. &s his resear"her testi ed, the usti"e set thedire"tion that the resear"h and study %ere to ta9e y dis"ussin' the issues

%ith her, settin' forth his #osition on those issues, and re$ie%in' and"ommentin' on the study that she %as #uttin' to'ether until he %as"om#letely satis ed %ith it. ; *< 4n e$ery sense, usti"e =el Castillo %as in"ontrol of the %ritin' of the re#ort to the Court, %hi"h re#ort e$entually

e"ame the asis for the de"ision, and determined its nal out"ome. &ssi'nin' "ases for study and resear"h to a "ourt attorney, the

eBui$alent of a la% "ler9 in the Knited States Su#reme Court, is standard#ra"ti"e in the hi'h "ourts of all nations. his is di"tated y ne"essity. Fitha out 8+ to 1++ "ases assi'ned to a usti"e in our Court ea"h month, it %ould

e truly senseless for him to do all the studies and resear"h, 'oin' to the

li rary, sear"hin' the internet, "he"9in' footnotes, and %at"hin' the#un"tuations. 4f he does all these y himself, he %ould ha$e to allo"ate atleast one to t%o %ee9s of %or9 for ea"h "ase that has een su mitted forde"ision. he %heels of !usti"e in the Su#reme Court %ill 'rind to a halt undersu"h a #ro#osition.

Fhat is im#ortant is that, in this "ase, usti"e =el Castillo retained

"ontrol o$er the %ritin' of the de"ision in the 2inuya "ase %ithout, ho%e$er,ha$in' to loo9 o$er his resear"hers shoulder as she "leaned u# her draftre#ort to ensure that she hit the ri'ht "om#uter 9eys. he usti"es resear"her%as after all "om#etent in the eld of assi'nment 'i$en her. She nished la%

from a leadin' la% s"hool, 'raduated third in her "lass, ser$ed as Editor inChief of her s"hools a% ournal, and #la"ed fourth in the ar e>aminations%hen she too9 it. She earned a masters de'ree in 4nternational a% and?uman Ri'hts from a #resti'ious uni$ersity in the Knited States under theGlo al ?auser #ro'ram, %hi"h "ounsel for #etitioners "on"edes to e one of the to# #ost 'raduate #ro'rams on 4nternational a% in the %orld. usti"e =elCastillo did not e>er"ise ad !ud'ment in assi'nin' the resear"h %or9 inthe 2inuya "ase to her.

Can errors in #re#arin' de"isions e #re$entedW Not until "om#uters

"ease to e o#erated y human ein's %ho are $ulnera le to humanerrors. hey are hy#o"rites %ho elie$e that the "ourts should e as errorfree as they themsel$es are.

4n"identally, in the "ourse of the su mission of #etitioners e>hi its, the

Committee noted that #etitioners E>hi it , the a""usin' statement of thea"ulty of the K. . Colle'e of a% on the alle'ations of #la'iarism and

misinter#retation, %as a mere dummy. he %hole of the statement %asre#rodu"ed ut the si'natures #ortion elo% merely listed the names of 38





fa"ulty mem ers, in solid ro%s, %ith the letters S'd or si'ned #rinted esidethe names %ithout e>"e#tion. hese in"luded the name of retired Su#remeCourt usti"e Di"ente D. 2endo-a, a K. . #rofessor.

e"ause the Committee de"lined to admit a mere dummy of E>hi it ,

it dire"ted &tty. RoBue to #resent the si'ned "o#y %ithin three days of the&u'ust 6 hearin'. ; L< ?e "om#lied. &s it turned out, the ori'inal statement%as si'ned y only a minority of the fa"ulty mem ers on the list. he set of si'natories that a##eared li9e solid teeth in the dummy turned out to e

ro9en teeth in the ori'inal. Sin"e only 37 out of the 81 on the list si'ned thedo"ument, it does not a##ear to e a statement of the a"ulty ut of !ustsome of its mem ers. &nd retired usti"e D. D. 2endo-a did not si'n thestatement, "ontrary to %hat the dummy re#resented. he Committee%ondered %hy the =ean su mitted a dummy of the si'ned do"ument %henK. . has an a undan"e of "o#yin' ma"hines.

Sin"e the a o$e "ir"umstan"es a##ear to e related to se#arate en

1anc matter "on"ernin' the su##osed a"ulty statement, there is a need forthe Committee to turn o$er the si'ned "o#y of the same to the en 1anc forits "onsideration in relation to that matter.

H R 8!R , in $ie% of all of the a o$e, the Court:

1. DISMISS S for la"9 of merit #etitioner Dinuya, et al.s "har'es of

#la'iarism, t%istin' of "ited materials, and 'ross ne'le"t a'ainst usti"e2ariano C. del CastilloA

. DIR CTS the u li" 4nformation J"e to send "o#ies of this

de"ision to rofessors E$an . Criddle and E$an o> =es"ent, =r. 2ar9 Ellis,and rofessor Christian . ams at their 9no%n addressesA 3. DIR CTS the Cler9 of Court to #ro$ide all "ourt attorneys in$ol$ed in

le'al resear"h and re#ortin' %ith "o#ies of this de"ision and to en!oin themto a$oid editin' errors "ommitted in the 2inuya "ase %hile usin' the e>istin'"om#uter #ro'ram es#e"ially %hen the $olume of "itations and footnotin' issu stantialA and

*. inally, DIR CTS the Cler9 of Court to a"Buire the ne"essary

soft%are for use y the Court that "an #re$ent future la#ses in "itations andattri utions.

urther, the Court DIR CTS the Committee on Ethi"s and Ethi"al

Standards to turn o$er to the en an" the dummy as %ell as the si'ned "o#yof #etitioners E>hi it , entitled Restorin' 4nte'rity, a statement y the

a"ulty of the Kni$ersity of the hili##ines Colle'e of a% for the en an"s"onsideration in relation to the se#arate #endin' matter "on"ernin' thatsu##osed a"ulty statement.





t%o. =emands %ere made on oth to settle the matter %ith ayanihan.?o%e$er no settlement %as rea"hed y the #arties.

?en"e, on &u'ust 8, +++, ayanihan led %ith the Re'ional rial Court atQue-on City a "om#laint a'ainst Chan and 2G for $iolation of Se"tion 16

of Re#u li" &"t No. 8 /3, other%ise 9no%n as the Intellectual Property Codeo# the Philippines , %ith a #rayer for the issuan"e of em#orary Restrainin'rder ( R ) and@or %rit of #reliminary in!un"tion, en!oinin' res#ondent 2G

from further re"ordin' and distri utin' the su !e"t musi"al "om#ositions in%hate$er form of musi"al #rodu"ts, and Chan from further 'rantin' anyauthority to re"ord and distri ute the same musi"al "om#ositions.

4n its ans%er, 2G "ontended, amon' others, that: (1) the a"ts of re"ordin'and #u li"ation sou'ht to e en!oined had already een "onsummated,there y renderin' moot ayanihan0s #rayer for R and@or #reliminaryin!un"tionA and ( ) there is no "lear sho%in' that #etitioner ayanihan %ould

e 'reatly dama'ed y the refusal of the #rayed for R and@or #reliminaryin!un"tion. 2G also #leaded a "ross "laim a'ainst its "o res#ondent Chanfor violation o# his &arranty that his musi"al "om#ositions are free from"laims of third #ersons, and a "ounter"laim for dama'es a'ainst #etitioner

ayanihan.

Chan, for his #art, led his o%n ans%er to the "om#laint, thereunder alle'in'that: (1) it %as ne$er his intention to di$est himself of all his ri'hts andinterest o$er the musi"al "om#ositions in BuestionA ( ) the "ontra"ts heentered into %ith ayanihan are mere musi" #u li"ation a'reements 'i$in'

ayanihan, as assi'nee, the #o%er to administer his "o#yri'ht o$er his t%o

son's and to a"t as the e>"lusi$e #u lisher thereofA (3) he %as not "o'ni-antof the a##li"ation made y and the su seBuent 'rant of "o#yri'hts toayanihanA and (*) ayanihan %as remissed in its o li'ations under the

"ontra"ts e"ause it failed to e e"ti$ely ad$ertise his musi"al "om#ositionsfor almost t%enty ( +) years, hen"e, he "aused the rescission of said"ontra"ts in 1//7. Chan also in"luded in his ans%er a "ounter"laim fordama'es a'ainst ayanihan.

&fter hearin' the #arties, the lo%er "ourt "ame out %ith an order denyin'ayanihan0s #rayer for R , sayin', thus:

&fter "arefully "onsiderin' the ar'uments and e$aluatin' the e$iden"e#resented y "ounsels, this Court nds that the #lainti has not een a le tosho% its entitlement to the relief of R as #rayed for in its $eri ed"om#laint (see Section ', Rule o# the *++ Rules o# Civil Procedure, asa-ended ), hen"e, this Court is of the "onsidered and hum le $ie% that theends of !usti"e shall e ser$ed etter if the afore"ited a##li"ation is denied.



4N D4EF ?E REG 4NG, the afore"ited a##li"ation or #rayer for theissuan"e of a R is denied.

S R=ERE=.

hereafter, the same "ourt, in its su seBuent !r&"r &a'"& A/ /$'2*, 2001 ,[2] "rala% li9e%ise denied ayanihan0s #rayer for a %rit of #reliminary in!un"tion, to %it:

&fter "arefully 'oin' o$er the #leadin's and the #ertinent #ortions of there"ords insofar as they are #ertinent to the issue under "onsideration, thisCourt nds that the #lainti has not een a le to sho% its entitlement to therelief of #reliminary in!un"tion as #rayed for in its $eri ed "om#laint(see Section ', Rule o# the *++ Rules o# Civil Procedure, as a-ended ),hen"e, this Court is of the "onsidered and hum le $ie% that the ends of

!usti"e shall e ser$ed etter if the afore"ited a##li"ation is denied, (see

also rder dated uly 16, ++1).4N D4EF ?E REG 4NG, the a##li"ation or #rayer for the issuan"e of a%rit of #reliminary in!un"tion is denied.

S R=ERE=.

4ts motion for a re"onsideration of the same order ha$in' een li9e%isedenied y the trial "ourt in its ne>t !r&"r o a%/ar 10, 2002 ,[3] "rala% #etitioner ayanihan then %ent to the Court of &##eals on a #etitionfor certiorari , thereat do"9eted as CA+G.R. S No. 6-626 , im#utin' 'ra$e

a use of dis"retion on the #art of the trial "ourt in issuin' the rders of &u'ust *, ++1 and anuary 1+, ++1, denyin' its #rayers for a %rit of #reliminary in!un"tion and motion for re"onsideration, res#e"ti$ely.

4n the herein assailed D"c#$#o% &a'"& D"c"()"r 1*, 200*, the Court of &##eals u#held the "hallen'ed orders of the trial "ourt and a""ordin'lydismissed ayanihan #etition, thus:

F?ERE RE, ndin' neither Ha% of !urisdi"tion nor taint of 'ra$e a use of dis"retion in the issuan"e of the assailed rders of the res#ondent "ourtdated &u'ust *, ++1 and anuary 1+, ++ , the instant #etition is=4S24SSE=. No "osts.

S R=ERE=. [*] "rala%

?en"e, ayanihan0s #resent re"ourse.

4t is #etitioner0s su mission that the a##ellate "ourt "ommitted re$ersi leerror %hen it dismissed its #etition for certiorari and u#held the trial "ourt0s









denial of its a##li"ation for a %rit of #reliminary in!un"tion. etitioner insiststhat as assi'nee of the "o#yri'hts o$er the musi"al "om#ositions in Buestion,it has a "lear le'al ri'ht to a %rit of #reliminary in!un"tionA that res#ondents

2G and Chan $iolated its "o#yri'hts o$er the same musi"al "om#ositionsAthat des#ite 9no%led'e y res#ondent 2G of #etitioner0s "o#yri'hts o$er

the said musi"al "om#ositions, 2G "ontinues to re"ord and distri ute thesame, to #etitioner0s 'reat and irre#ara le in!ury.

Fe =ENI.

Fe ha$e "onstantly reminded "ourts that there is no #o%er, the e>er"ise of %hi"h is more deli"ate and reBuires 'reater "aution, deli eration and sounddis"retion, or %hi"h is more dan'erous in a dou tful "ase, than the issuan"eof an in!un"tion. & "ourt should, as mu"h as #ossi le, a$oid issuin' the %rit%hi"h %ould e e"ti$ely dis#ose of the main "ase %ithout trial.

?ere, nothin' is more e$ident than the trial "ourt0s a idin' a%areness of thee>tremely diJ"ult alan"in' a"t it had to #erform in dealin' %ith #etitioner0s#rayer for in!un"ti$e reliefs. Cons"ious, as e$idently it is, of the fa"t thatthere is manifest a use of dis"retion in the issuan"e of an in!un"ti$e %rit if the follo%in' reBuisites #ro$ided for y la% are not #resent: (1) there must

e a ri'ht in esse or the e>isten"e of a ri'ht to e #rote"tedA and ( ) the a"ta'ainst %hi"h the in!un"tion is to e dire"ted is a $iolation of su"h ri'ht,[5] "rala% the trial "ourt threaded the "orre"t #ath in denyin' #etitioner0s#rayer therefor. or, su"h a %rit should only e 'ranted if a #arty is "learlyentitled thereto. [6] "rala%

f "ourse, %hile a "lear sho%in' of the ri'ht to an in!un"ti$e %rit is ne"essaryal eit its e>isten"e need not e "on"lusi$ely esta lished, [7] "rala% as thee$iden"e reBuired therefor need not e "on"lusi$e or "om#lete, still, for ana##li"ant, li9e #etitioner ayanihan, to e entitled to the %rit, he is reBuiredto sho% that he has the ostensi le ri'ht to the nal relief #rayed for in its"om#laint. [ ]"rala% ?ere, the trial "ourt did not nd am#le !usti "ations forthe issuan"e of the %rit #rayed for y #etitioner.

KnBuestiona ly, res#ondent Chan, ein' undenia ly the "om#oser andauthor of the lyri"s of the t%o ( ) son's, is #rote"ted y the mere fa"t alonethat he is the "reator thereof, "onforma ly %ith Re#u li" &"t No. 8 /3,other%ise 9no%n as the Intellectual Property Code , Se"tion 17 . of %hi"hreads:

* . . For9s are #rote"ted y the sole fa"t of their "reation, irres#e"ti$e of their mode or form of e>#ression, as %ell as of their "ontent, Buality and#ur#ose.











understanda le, lest it e su !e"ted to a #lausi le sus#i"ion of ha$in'#re!ud'ed the merits of the main "ase.

H R 8!R , #etition is here y =EN4E=.

S R=ERE=.Dery truly yours,

UNI9 R HI9I IN S G.R. No. 11/ 8+: RC;, INC.,

"'#'#o%"r, resent:

KN , J., Chairperson ,S&N= D& GK 4ERREM,+ < " r $ / $ + C R N&,

&MCKN& and G&RC4&, JJ. TH H!N!RAB9 C!URT!8 A A9S a%& R!CT RAND GAMB9 HI9I IN S,INC.,R"$ o%&"%'$. romul'ated:

&u'ust 1+, ++6

= + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + =

D C I S I ! N

C!R!NA, J. >

4n this #etition for re$ie% under Rule *L of the Rules of Court, #etitionerassails the e ruary *, 1//L de"ision ;1< of the Court of &##eals (C&) in C&G.R. S No. 3L * entitled /nilever Philippines (PRC), Inc. v. 0onora1le

$ernando 2. Gorospe, Jr. and Procter and Ga-1le Philippines, Inc.(P3GP) %hi"h aJrmed the issuan"e y the "ourt a 4uo of a %rit of #reliminary in!un"tion a'ainst it. he %rit en!oined #etitioner from usin' andairin', until further orders of the "ourt, "ertain tele$ision "ommer"ials for itslaundry #rodu"ts "laimed to e identi"al or similar to its dou le tu' or ta"ta" 9ey $isual. ; <









etitioner alle'es that the %rit of #reliminary in!un"tion %as issued ythe trial "ourt (and aJrmed y the C&) %ithout any e$iden"e of #ri$ateres#ondents "lear and unmista9a le ri'ht to the %rit. etitioner further"ontends that the #reliminary in!un"tion issued a'ainst it already dis#osed of the main "ase %ithout trial, thus denyin' #etitioner of any o##ortunity to

#resent e$iden"e on its ehalf. he ante"edents sho% that on &u'ust *, 1//*, #ri$ate res#ondent ro"terand Gam le hils., 4n". led a "om#laint for in!un"tion %ith dama'es and a#rayer for tem#orary restrainin' order and@or %rit of #reliminary in!un"tiona'ainst #etitioner Knile$er, alle'in' that:

1.L. &s early as 1/8 , a OG su sidiary in 4taly used a 9ey$isual in the ad$ertisement of its laundry deter'ent and

lea"hin' #rodu"ts. his 9ey $isual 9no%n as the dou letu' or ta" ta" demonstration sho%s the fa ri" ein' held

y oth hands and stret"hed side%ays. 1.6. he ta" ta" %as "on"e#tuali-ed for OG y the

ad$ertisin' a'en"y 2ilano and Gray of 4taly in1/8 . he ta" ta" %as used in the same year in anad$ertisement entitled &ll a#erto to demonstrate the e e"ton fa ri"s of one of OG s #rodu"ts, a liBuid lea"h "alled&"e.

> > > > > > > > >

1.7. Sin"e then, OG has used the ta" ta" 9ey $isual in thead$ertisement of its #rodu"ts. 4n fa"t, in 1/86, in 4taly,the ta" ta" 9ey $isual %as used in the tele$ision"ommer"ial for &"e entitled Pite.

1.8. OG has used the same distin"ti$e ta" ta" 9ey $isual

to lo"al "onsumers in the hili##ines.

> > > > > > > > >

1.1+. Su stantially and materially imitatin' the aforesaid ta"ta" 9ey $isual of OG and in latant disre'ardof OG s intelle"tual #ro#erty ri'hts, Knile$er on * uly1//3 started airin' a 6+ se"ond tele$ision "ommer"ial DCof its ree-e o%er%hite laundry #rodu"t "alled or9y. hesaid DC in"luded a stret"hin' $isual #resentation andsound e e"ts almost ;identi"al< or su stantially similarto OG s ta" ta" 9ey $isual.



> > > > > > > > > 1.1*. n uly 1L, 1//*, OG aired in the hili##ines, the

same Pite tele$ision ad$ertisement it used in 4taly in 1/86,merely du in' the 4talian lan'ua'e %ith ili#ino for the

same #rodu"e &"e lea"hin' liBuid %hi"h P3GP no%mar9ets in the hili##ines. 1.1L. n &u'ust 1, 1//*, Knile$er led a Com#laint %ith the

&d$ertisin' oard of the hili##ines to #re$ent OG fromairin' the Pite tele$ision ad$ertisement. ;3<

n &u'ust 6, 1//*, ud'e Goros#e issued an order 'rantin' a

tem#orary restrainin' order and settin' it for hearin' on Se#tem er , 1//*for Knile$er to sho% "ause %hy the %rit of #reliminary in!un"tion should notissue. =urin' the hearin' on Se#tem er , 1//*, OG re"ei$ed Knile$ers

ans%er %ith o##osition to #reliminary in!un"tion. OG led its re#ly toKnile$ers o##osition to a #reliminary in!un"tion on Se#tem er 6, 1//*.

=urin' the hearin' on Se#tem er /, 1//*, ud'e Goros#e ordered#etitioner to su mit asur re!oinder. OG re"ei$ed Knile$ers re!oinder tore#ly on Se#tem er 13, 1//*. he follo%in' day, on Se#tem er 1*, 1//*,

OG led its sur re#ly to Knile$ers re!oinder.

n Se#tem er 1/, 1//*, OG re"ei$ed a "o#y of the order datedSe#tem er 16, 1//* orderin' the issuan"e of a %rit of #reliminary in!un"tionand >in' a ond of 1++,+++. n the same date, OG led the reBuired

ond issued y rudential Guarantee and &ssuran"e, 4n". n Se#tem er 1, 1//*, #etitioner a##ealed to the C& assi'nin' the

follo%in' errors alle'edly "ommitted y the "ourt a 4uo, to %it:

K 4C RES N=EN ?&= &C E= F4 ? K R 4N E CESS KR4S=4C 4 N &N= F4 ? GR&DE & KSE =4SCRE 4 N

&2 KN 4NG &CP KR4S=4C 4 N 4N 4SSK4NG ?E FR4 RE 424N&RI 4N KNC 4 N 4N D4 & 4 N ?E RK ES N

ED4=ENCE &N= R CE=KRE, &R 4CK &R I SEC. 3 (a), RK EL8 ?E RED4SE= RK ES C KR &N= ?E RED&4 4NG

KR4S RK=ENCE.

K 4C RES N=EN 4N 4SSK4NG ?E D 4= R=ER =& E=SE E2 ER 16, 1//*, ?&=, 4N E EC , & RE&=I RE K=GE=

?E 2ER4 S ?E 2&4N C&SE.





K 4C RES N=EN ?&= 4SSKE= ?E D 4= R=ER&CC R=4NG RE 4E & N N &R I 4N C4D4 C&SE N . /* *3*F4 ? K KR4S=4C 4 N.

K 4C RES N=EN 4N 4SSK4NG ?E D 4= R=ER ?&=

=E R4DE= E 4 4 NER SK S &N 4DE &N= R CE=KR& =KER CESSA K 4C RES N=EN ?&= REC SE= E 4 4 NERSR4G? &N= ?E R KN4 I CR SS E &24NE R C ERSF4 NESSES & &= &N= ?ER S&. ;*<

n e ruary *, 1//L, the C& rendered its de"ision ndin' that ud'e Goros#e did not a"t %ith 'ra$e a use of dis"retion in issuin' thedis#uted order. he #etition for "ertiorari %as thus dismissed for la"9 of merit.

&fter a "areful #erusal of the re"ords, %e a'ree %ith the C& and aJrmits de"ision in toto5

etitioner does not deny that the Buestioned Dad$ertisements are su stantially similar to OG sdou le tu'or ta" ta" 9ey $isual. ?o%e$er, it su mits that OG is notentitled to the relief demanded, %hi"h is to en!oin #etitioner fromairin' said D ad$ertisements, for the reason that #etitioner hasCerti "ates of Co#yri'ht Re'istration for %hi"h ad$ertisements%hile OG has none %ith res#e"t to its dou le tu' or ta" ta"9ey$isual. 4n other %ords, it is #etitioners "ontention that OG is

not entitled to any #rote"tion e"ause it has not re'istered %iththe National i rary the $ery D "ommer"ials %hi"h it "laimsha$e een infrin'ed y #etitioner.

Fe disa'ree. Se"tion of = */ sti#ulates that the

"o#yri'ht for a %or9 or intelle"tual "reation su sists from themoment of its "reation. &""ordin'ly, the "reator a"Buires"o#yri'ht for his %or9 ri'ht u#on its "reation. Contrary to#etitioners "ontention, the intelle"tual "reators e>er"ise anden!oyment of "o#yri'ht for his %or9 and the #rote"tion 'i$en yla% to him is not "ontin'ent or de#endent on any formality orre'istration. herefore, ta9in' the material alle'ations of #ara'ra#hs 1.3 to 1.L of OG s $eri ed Com#laint in the "onte>tof = */, it "annot e seriously dou ted that at least, for#ur#oses of determinin' %hether #reliminary in!un"tion shouldissue durin' the #enden"y of the "ase, OG is entitled to thein!un"ti$e relief #rayed for in its Com#laint.





he se"ond 'round is li9e%ise not %ell ta9en. &s ad$ertedto earlier, the #ro$isional remedy of #reliminary in!un"tion %illnot issue unless it is sho%n in the $eri ed "om#laint that #lainti is #ro a ly entitled to the relief demanded, %hi"h "onsists in%hole or in #art in restrainin' the "ommission or "ontinuan"e of

the a"ts "om#lained of. 4n $ie% of su"h reBuirement, the "ourthas to ma9e a tentati$e determination if the ri'ht sou'ht to e#rote"ted e>ists and %hether the a"t a'ainst %hi"h the %rit is to

e dire"ted is $iolati$e of su"h ri'ht. Certainly, the "ourtsdetermination as to the #ro#riety of issuin' the %rit "annot eta9en as a #re!ud'ment of the merits of the "ase e"ause it istentati$e in nature and the %rit may e dissol$ed durin' or afterthe trial if the "ourt nds that #lainti %as not entitled to it.

> > > > > > > > >

$iously, the determination made y the "ourt a Buo %asonly for #ur#oses of #reliminary in!un"tion, %ithout #assin' u#onthe merits of the "ase, %hi"h "annot e done until after a full

lo%n hearin' is "ondu"ted.

he third 'round is #atently unmeritorious. &s alle'ed inthe Com#laint OG is a su sidiary of ro"ter and Gam leCom#any ( OG) for %hi"h the dou le tu' or ta" ta" 9ey $isual%as "on"e#tuali-ed or "reated. 4n that "a#a"ity, OG used thesaid D ad$ertisement in the hili##ines to #romote its#rodu"ts. &s su"h su sidiary, OG is de nitely %ithin the

#rote"ti$e mantle of the statute (Se". 6, = */). inally, Fe nd the #ro"edure ado#ted y the "ourt a

4uo to e in order.

he re"ord "learly sho%s that res#ondent ud'e follo%edthe (#ro"edure #ro$ided for in Se"tion L, Rule L8, as amended y

*, and ara'ra#h &(8) of the 4nterim Rules). 4n fa"t, the"ourt a 4uo set the in"ident for hearin' on Se#tem er , 1//*, at%hi"h date #etitioner %as ordered to sho% "ause %hy the %ritshould not e issued. etitioner led an ##osition to thea##li"ation for #reliminary in!un"tion. he same in"ident %asa'ain set for hearin' on Se#tem er /, 1//*, durin' %hi"h the#arties made some manifestations in su##ort of their res#e"ti$e#ositions. Su seBuent to su"h hearin' #etitioner led a Re#lyto OG s Re!oinder to its ##osition. Knder the fore'oin'"ir"umstan"es, it is a surd to e$en su''est that #etitioner %asnot 'i$en its day in "ourt in the matter of the issuan"e of the#reliminary in!un"ti$e relief.



> > > > > > > > >

here %as of "ourse e>treme ur'en"y for the "ourt a 4uo to

a"t on #lainti s a##li"ation for #reliminary in!un"tion. he airin'

of D "ommer"ials is ne"essarily of limited duration only. Fithoutsu"h tem#orary relief, any #ermanent in!un"tion a'ainst theinfrin'in' D ad$ertisements of %hi"h OG may #ossi lysu""eed in 'ettin' after the main "ase is nally ad!udi"ated"ould e illusory if y then su"h ad$ertisements are no lon'erused or aired y #etitioner. 4t is therefore not diJ"ult to #er"ei$ethe #ossi le irre#ara le dama'e %hi"h OG may su er if res#ondent ud'e did not a"t #rom#tly on its a##li"ation for#reliminary in!un"tion. ;L<

reliminary in!un"tion is a #ro$isional remedy intended to #ro$ide#rote"tion to #arties for the #reser$ation of their ri'hts or interests durin'the #enden"y of the #rin"i#al a"tion. ;6< hus, Se"tion1, Rule L8 of the Rules of Court #ro$ides:

Se"tion 1. reliminary in!un"tion de nedA "lasses. &

#reliminary in!un"tion is an order 'ranted at any sta'e of ana"tion or #ro"eedin' #rior to the !ud'ment or nal order,reBuirin' a #arty or a "ourt, a'en"y or a #erson to refrain from a#arti"ular a"t or a"ts. 4t may also reBuire the #erforman"e of a

#arti"ular a"t or a"ts, in %hi"h "ase it shall e 9no%n as a#reliminary mandatory in!un"tion.

4n!un"tion is resorted to only %hen there is a #ressin' ne"essity toa$oid in!urious "onseBuen"es %hi"h "annot e remedied under any standard"om#ensation. ;7< &s "orre"tly ruled y the C&, there %as an e>treme ur'en"yto 'rant the #reliminary in!un"tion #rayed for y OG "onsiderin' that D"ommer"ials are aired for a limited #eriod of time only. 4n fa"t, this Courtta9es note of the fa"t that the D "ommer"ial in issue the Pite Dad$ertisement is no lon'er aired today, more than 1+ years after thein!un"tion %as 'ranted on Se#tem er 16, 1//*.

he sole o !e"ti$e of a %rit of #reliminary in!un"tion is to #reser$e the

status Buo until the merits of the "ase "an e heard fully. ;8< & %rit of #reliminary in!un"tion is 'enerally ased solely on initial and in"om#letee$iden"e. ;/< hus, it %as im#ossi le for the "ourt a 4uo to fully dis#ose of the"ase, as "laimed y #etitioner, %ithout all the e$iden"e needed for the fullresolution of the same. o date, the main "ase still has to e resol$ed y thetrial "ourt.













he issuan"e of a #reliminary in!un"tion rests entirely on the dis"retionof the "ourt and is 'enerally not interfered %ith e>"e#t in "ases of manifesta use. ;1+< here %as no su"h a use in the "ase at ar, es#e"ially e"ause#etitioner %as 'i$en all the o##ortunity to o##ose the a##li"ation forin!un"tion. he fa"t %as, it failed to "on$in"e the "ourt %hy the in!un"tion

should not e issued. hus, in Santos v. Court o# "ppeals,;11<

%e held that no'ra$e a use of dis"retion "an e attri uted to a !ud'e or ody issuin' a %ritof #reliminary in!un"tion %here a #arty has not een de#ri$ed of its day in"ourt as it %as heard and it e>hausti$ely #resented all its ar'uments anddefenses.

H R 8!R , the #etition is here y D NI D.

Costs a'ainst #etitioner.

G.R. No. 1-5-56, March 11, 2015ABS+CBN C!R !RATI!N , Petitioner , v. 8 9I G!?!N, GI9B RT! R.DUA IT, R., MARISSA 9. 89!R S, SSICA A. S!H!, GRAC D 9A

QA+R Y S, !HN !9I R T. MANA9ASTAS, !HN D! S AND AND! S , Respondents .

D C I S I ! N

9 !N N, J. >

he main issue in this "ase is %hether there is #ro a le "ause to "har'eres#ondents %ith infrin'ement under Re#u li" &"t No. 8 /3, other%ise9no%n as the 4ntelle"tual ro#erty Code. he resolution of this issue reBuires"lari "ation of the "on"e#t of 5"o#yri'hta le material5 in relation to materialthat is re road"ast li$e as a ne%s story. Fe are also as9ed to rule on %hether"riminal #rose"ution for infrin'ement of "o#yri'hta le material, su"h as li$ere road"ast, "an e ne'ated y 'ood faith.

& S C N Cor#oration (& S C N) led the etition for Re$ie% on Certiorari 1 toassail the No$em er /, +1+ =e"ision and the 2ar"h 3, +11 Resolution 3 ofthe Court of &##eals. he Court of &##eals reinstated the =e#artment of

usti"e Resolution dated &u'ust 1, ++L that ordered the %ithdra%al of the4nformation ndin' #ro a le "ause for res#ondents0 $iolation of Se"tions177 * and 11 L of the 4ntelle"tual ro#erty Code. 6 Res#ondents are oJ"ersand em#loyees of G2& Net%or9, 4n". (G2& 7). hey are: eli#e Go-on(Go-on), G2& 7 residentA Gil erto R. =ua$it, r. (=ua$it, r.), E>e"uti$e Di"e

residentA 2arissa . lores ( lores), Di"e resident for Ne%s and u li"& airsA essi"a &. Soho (Soho), =ire"tor for Ne%sA Gra"e =_la eTa Reyes(=ela eTa Reyes), ?ead of Ne%s and u li" & airsA ohn li$er 2analastas







0(2analastas), ro'ram 2ana'erA and others.

he "ontro$ersy arose from G2& 70s ne%s "o$era'e on the home"omin' ofili#ino o$erseas %or9er and hosta'e $i"tim &n'elo dela Cru- on uly ,++*. &s summari-ed y the Court of &##eals:"hanro les$irtualla%li rary

$erseas ili#ino %or9er &n'elo dela Cru- %as 9idna##ed y 4raBi militantsand as a "ondition for his release, a demand %as made for the %ithdra%al ofili#ino troo#s in 4raB. &fter ne'otiations, he %as released y his "a#tors and

%as s"heduled to return to the "ountry in the afternoon of uly ++*.""asioned y said home"omin' and the #u li" interest it 'enerated, oth . .

. G2& Net%or9, 4n". . . . and ;#etitioner< made their res#e"ti$e road"astsand "o$era'e of the li$e e$ent. 7

& S C N 5"ondu"ted li$e audio $ideo "o$era'e of and road"asted thearri$al of &n'elo dela Cru- at the Ninoy &Buino 4nternational &ir#ort (N&4&)and the su seBuent #ress "onferen"e.5 8 & S C N allo%ed Reuters ele$isionSer$i"e (Reuters) to air the foota'es it had ta9en earlier under a s#e"ial

em ar'o a'reement./

& S C N alle'ed that under the s#e"ial em ar'o a'reement, any of thefoota'es it too9 %ould e for the 5use of Renter0s international su s"ri ersonly, and shall e "onsidered and treated y Reuters under 0em ar'o0a'ainst use y other su s"ri ers in the hili##ines. . . . ;N<o other hili##inesu s"ri er of Reuters %ould e allo%ed to use & S C N foota'e %ithout thelatter0s "onsent.5 1+

G2& 7, to %hi"h Go-on, =ua$it, r., lores, Soho, =ela eTa Reyes, and2analastas are "onne"ted, 5assi'ned and stationed ne%s re#orters and

te"hni"al men at the N&4& for its li$e road"ast and non li$e ne%s "o$era'eof the arri$al of dela Cru-.5 11 G2& 7 su s"ri es to oth Reuters and Ca leNe%s Net%or9 (CNN). 4t re"ei$ed a li$e $ideo feed of the "o$era'e of &n'elodela Cru-0s arri$al from Reuters. 1

G2& 7 immediately "arried the li$e ne%sfeed in its #ro'ram 5 lash Re#ort,5to'ether %ith its li$e road"ast. 13 &lle'edly, G2& 7 did not re"ei$e any noti"eor %as not a%are that Reuters %as airin' foota'es of & S C N. 1* G2& 70sne%s "ontrol room sta sa% neither the 5No &""ess hili##ines5 noti"e nor anoti"e that the $ideo feed %as under em ar'o in fa$or of & S C N. 1L

n &u'ust 13, ++*, & S C N led the Com#laint for "o#yri'ht infrin'ementunder Se"tions 177 16 and 11 17 of the 4ntelle"tual ro#erty Code. 18

n =e"em er 3, ++*, &ssistant City rose"utor =indo Denturan-a issued theResolution 1/ ndin' #ro a le "ause to indi"t =ela eTa Reyes and2analastas. + ConseBuently, the 4nformation 1 for $iolation of the 4ntelle"tual

ro#erty Code %as led on =e"em er 17, ++*. 4treads:"hanro les$irtualla%li rary



hat on or a out the nd of uly ++*, in Que-on City, hili##ines, the a o$enamed a""used, "ons#irin' to'ether, "onfederatin' %ith and mutuallyhel#in' ea"h other, ein' the ?ead of Ne%s #erations and the ro'ram2ana'er, res#e"ti$ely, for the Ne%s and u li" & airs =e#artment of G2&Net%or9, 4n"., did then and there, %illfully, unla%fully and feloniously use and

road"ast the foota'e of the arri$al of &n'elo ;d<ela Cru- at the Ninoy &Buino4nternational &ir#ort of %hi"h & S C N holds the e>"lusi$e o%nershi# and"o#yri'ht y then and there usin', airin', and road"astin' the said foota'ein its ne%s #ro'ram 5 &S? RE R 5 %ithout rst o tainin' the "onsent orauthority of said "o#yri'ht o%ner, to their dama'e and #re!udi"e.

Contrary to la%.n anuary *, ++L, res#ondents led the etition for Re$ie% efore the

=e#artment of usti"e. 3 4n the Resolution (Gon-ale- Resolution) dated &u'ust1, ++L, =e#artment of usti"e Se"retary Raul 2. Gon-ale- (Se"retaryGon-ale-) ruled in fa$or of res#ondents and held that 'ood faith may e

raised as a defense in the "ase.*

he dis#ositi$e #ortion of the Resolutionreads:"hanro les$irtualla%li raryH R 8!R , ?E E 4 4 N R RED4EF 4 E= I G2& 7 in 4.S. No. +*

1+*L8 is "onsidered meritorious and is here y GRANT D. his "ase ishere y D#$(#$$"&, the resolution of the City rose"utor of Que-on City ishere y re$ersed and the same is ordered to %ithdra% the information if anyand re#ort a"tion ta9en to this oJ"e %ithin ten (1+) days. L (Em#hasis in theori'inal)

oth #arties mo$ed for re"onsideration of the Gon-ale- Resolution. 6

2ean%hile, on anuary 1/, ++L, the trial "ourt 'ranted the 2otion to

Sus#end ro"eedin's led earlier y =ela eTa Reyes and 2analastas.7

hetrial "ourt rder reads:"hanro les$irtualla%li raryerusin' the motion, the "ourt nds that a #etition for re$ie% %as led %ith

the =e#artment of usti"e on anuary L, ++L as "on rmed y the #u li"#rose"utor. Knder Se"tion 11 ("), Rule 116 of the Rules of Criminal ro"edure,on"e a #etition for re$ie% is led %ith the =e#artment of usti"e, asus#ension of the "riminal #ro"eedin's may e allo%ed y the "ourt.

&""ordin'ly, to allo% the =e#artment of usti"e the o##ortunity to a"t on said#etition for re$ie%, let the #ro"eedin's on this "ase e sus#ended for a#eriod of si>ty (6+) days "ounted from anuary L, ++L, the date the #etition%as led %ith the =e#artment of usti"e. he arrai'nment of the a""used on

e ruary 1, ++L is a""ordin'ly "an"elled. et the arrai'nment eres"heduled to 2ar"h 8, ++L at 8:3+ a.m. he a""used throu'h "ounsel arenoti ed in o#en "ourt.

S R=ERE=. 8

n une /, +1+, =e#artment of usti"e &"tin' Se"retary &l erto C. &'ra(Se"retary &'ra) issued the Resolution (&'ra Resolution) that re$ersed the



Gon-ale- Resolution and found #ro a le "ause to "har'e =ela eTa Reyesand 2analastas for $iolation of the 4ntelle"tual ro#erty Code. / Se"retary&'ra also found #ro a le "ause to indi"t Go-on, =ua$it, r., lores, and Sohofor the same $iolation. 3+ ?e ruled that:"hanro les$irtualla%li rary;%<hile 'ood faith may e a defense in "o#yri'ht infrin'ement, the same is a

dis#uta le #resum#tion that must e #ro$en in a full lo%n trial. =is#uta le#resum#tions may e "ontradi"ted and o$er"ome y other e$iden"e. hus, afull lo%n trial is the #ro#er $enue %here fa"ts, issues and la%s aree$aluated and "onsidered. he $ery #ur#ose of trial is to allo% a #arty to#resent e$iden"e to o$er"ome the dis#uta le #resum#tions in$ol$ed. 31

he dis#ositi$e #ortion of the &'ra Resolution#ro$ides:"hanro les$irtualla%li rary

H R 8!R , #remises "onsidered:

(a) he Mo'#o% or R"co%$#&"ra'#o% led y a##ellees & S C Nroad"astin' Cor#oration (& S C N) of our Resolution #romul'ated on

&u'ust 1, ++L (Resolution No. 36*, Series of ++L) and the "'#'#o% orR"<#" led y "om#lainant a##ellant & S C N in 4.S. No. +* 1+*L8 on &#ril1+, ++6, are GR&N E= and the City rose"utor of Que-on City is here yordered to le the ne"essary 4nformation for $iolation of Se"tion 177 and 11of Re#u li" &"t No. 8 /3 a'ainst G2& 7. eli#e . Go-on, Gil erto R. =ua$it,

r., 2arissa . lores, essi"a &. Soho, Gra"e =ela ena Reyes, ohn li$er .2analastas;.<

S R=ERE=. 3 (Em#hasis in the ori'inal)Res#ondents assailed the &'ra Resolution throu'h the etition for Certiorari%ith #rayer for issuan"e of a tem#orary restrainin' order and@or Frit of

reliminary 4n!un"tion on Se#tem er , +1+ efore the Court of &##eals. 4nthe Resolution dated Se#tem er 13, +1+, the Court of &##eals 'ranted thetem#orary restrainin' order #re$entin' the =e#artment of usti"e fromenfor"in' the &'ra Resolution. 33

n No$em er /, +1+, the Court of &##eals rendered the =e"ision 'rantin'the etition and re$ersin' and settin' aside the &'ra Resolution. 3* he Courtof &##eals held that Se"retary &'ra "ommitted errors of !urisdi"tion inissuin' the assailed Resolution. Resol$in' the issue of "o#yri'htinfrin'ement, the Court of &##eals said:"hanro les$irtualla%li rarySurely, #ri$ate res#ondent has a "o#yri'ht of its ne%s "o$era'e. Seemin'ly,for airin' said $ideo feed, #etitioner G2& is lia le under the #ro$isions of the4ntelle"tual ro#erty Code, %hi"h %as ena"ted #ur#osely to #rote"t "o#yri'hto%ners from infrin'ement. 0o&ever, it is an ad-itted #act that petitionerGM" had only aired a ;ve ( ) second #oota:e o# the disputed live video #eedthat it had received #ro- Reuters and C@@ as a su1scri1er. Indeed,

petitioners had no notice o# the ri:ht o# o&nership o# private respondentover the sa-e. Without notice o# the @o "ccess Philippines restriction o#the live video #eed, petitioner cannot he #aulted #or airin: a live video #eed



#ro- Reuters and C@@.

Derily, as a#tly o#ined y Se"retary Gon-ale- in his earlier Resolution, the a"tof #etitioners in airin' the $e (L) se"ond foota'e %as undenia ly attended

y 'ood faith and it thus ser$es to e>"ul#ate them from "riminal lia ility

under the Code. While the Intellectual Properly Code is a special la&, andthus :enerally cate:ori>ed as ma$um prohi"itum, it 1ears to stress thatthe provisions o# the Code itsel# do not ipso #acto penali>e a person or entity#or copyri:ht in#rin:e-ent 1y the -ere #act that one had used a copyri:hted&or! or -aterial.

Certainly so, in the e>er"ise of one0s moral and e"onomi" or "o#yri'hts, the$ery #ro$isions of art 4D of the 4ntelle"tual ro#erty Code #ro$ide for thes"o#e and limitations on "o#yri'ht #rote"tion under Se"tion 18* and in fa"t#ermit fair use of "o#yri'hted %or9 under Se"tion 18L. Fith the aforesaidstatutory limitations on one0s e"onomi" and "o#yri'hts and the allo%a le

instan"es %here the other #ersons "an le'ally use a "o#yri'hted %or9,"riminal "ul#a ility "learly atta"hes only %hen the infrin'ement had een9no%in'ly and intentionally "ommitted. 3L (Em#hasis su##lied)

he dis#ositi$e #ortion of the =e"ision reads:"hanro les$irtualla%li raryH R 8!R , the fore'oin' "onsidered, the instant #etition is

here y GRANT D and the assailed Resolution dated / une+1+ R RS D and S T ASID . &""ordin'ly, the earlier Resolution dated

1 &u'ust ++L, %hi"h ordered the %ithdra%al of the 4nformation led, if any,a'ainst the #etitioners for $iolation of Se"tions 177 and 11 of the4ntelle"tual ro#erty Code, is here y R INSTAT D. No "osts.

S! !RD R D.36

(Em#hasis in the ori'inal)& S C N0s 2otion for Re"onsideration %as denied. 37 4t then led its etitionfor Re$ie% efore this "ourt assailin' the =e"ision and Resolution of theCourt of &##eals. 38

he issues for this "ourt0s "onsideration are:

irst, %hether Se"retary &'ra "ommitted errors of !urisdi"tion in theResolution dated une /, +1+ and, therefore, %hether a #etition for"ertiorari %as the #ro#er remedy in assailin' that ResolutionA

Se"ond, %hether ne%s foota'e is "o#yri'hta le under the la%A

hird, %hether there %as fair use of the road"ast materialA

ourth, %hether la"9 of 9no%led'e that a material is "o#yri'hted is a defensea'ainst "o#yri'ht infrin'ementA

ifth, %hether 'ood faith is a defense in a "riminal #rose"ution for $iolation of



he #reliminary in$esti'ation "ondu"ted y the s"al for the #ur#ose ofdeterminin' %hether a pri-a #acie "ase e>ists %arrantin' the #rose"ution ofthe a""used is terminated u#on the lin' of the information in the #ro#er"ourt. 4n turn, as a o$e stated, the lin' of said information sets in motionthe "riminal a"tion a'ainst the a""used in Court. Should the ;scal ;nd it

proper to conduct a reinvesti:ation o# the case, at such sta:e, the per-ission o# the Court -ust 1e secured. &fter su"h rein$esti'ation thendin' and re"ommendations of the s"al should e su mitted to the Court

for a##ro#riate a"tion. Fhile it is true that the s"al has the Buasi !udi"ialdis"retion to determine %hether or not a "riminal "ase should e led in"ourt or not, on"e the "ase had already een rou'ht to Court %hate$erdis#osition the s"al may feel should e #ro#er in the "ase thereafter should

e addressed for the "onsideration of the Court, the only Buali "ation is thatthe a"tion of the Court must not im#air the su stantial ri'hts of the a""usedor the ri'ht of the eo#le to due #ro"ess of la%.

Whether the accused had 1een arrai:ned or not and &hether it &as due to areinvesti:ation 1y the ;scal or a revie& 1y the Secretary o# Justice &here1ya -otion to dis-iss &as su1-itted to the Court, the Court in the e9ercise o#its discretion -ay :rant the -otion or deny it and re4uire that the trial onthe -erits proceed #or the proper deter-ination o# the case.

?o%e$er, one may as9, if the trial "ourt refuses to 'rant the motion todismiss led y the s"al u#on the dire"ti$e of the Se"retary of usti"e %illthere not e a $a"uum in the #rose"utionW & state #rose"utor to handle the"ase "annot #ossi ly e desi'nated y the Se"retary of usti"e %ho does not

elie$e that there is a asis for #rose"ution nor "an the s"al e e>#e"ted to

handle the #rose"ution of the "ase there y defyin' the su#erior order of theSe"retary of usti"e.

he ans%er is sim#le. he role of the s"al or #rose"utor as Fe all 9no% is tosee that !usti"e is done and not ne"essarily to se"ure the "on$i"tion of the#erson a""used efore the Courts. hus, in s#ite of his o#inion to the"ontrary, it is the duty of the s"al to #ro"eed %ith the #resentation ofe$iden"e of the #rose"ution to the Court to ena le the Court to arri$e at itso%n inde#endent !ud'ment as to %hether the a""used should e "on$i"tedor a"Buitted. he s"al should not shir9 from the res#onsi ility of a##earin'for the eo#le of the hili##ines e$en under su"h "ir"umstan"es mu"h lessshould he a andon the #rose"ution of the "ase lea$in' it to the hands of a#ri$ate #rose"utor for then the entire #ro"eedin's %ill e null and $oid. heleast that the s"al should do is to "ontinue to a##ear for the #rose"utionalthou'h he may turn o$er the #resentation of the e$iden"e to the #ri$ate#rose"utor ut still under his dire"tion and "ontrol.

he rule there#ore in this =urisdiction is that once a co-plaint or in#or-ationis ;led in Court any disposition o# the case as to its dis-issal or the



conviction or ac4uittal o# the accused rests in the sound discretion o# theCourt. &lthou'h the s"al retains the dire"tion and "ontrol of the #rose"utionof "riminal "ases e$en %hile the "ase is already in Court he "annot im#osehis o#inion on the trial "ourt. he Court is the 1est and sole =ud:e on &hat todo &ith the case 1e#ore it. he deter-ination o# the case is &ithin its

e9clusive =urisdiction and co-petence. & motion to dismiss the "ase led ythe s"al should e addressed to the Court %ho has the o#tion to 'rant ordeny the same. 4t does not matter if this is done efore or after thearrai'nment of the a""used or that the motion %as led after arein$esti'ation or u#on instru"tions of the Se"retary of usti"e %ho re$ie%edthe re"ords of the in$esti'ation. *3 (Em#hasis su##lied, "itations omitted)

he do"trine in Crespo %as reiterated in Mayor Balindon: v. Court o# "ppeals, ** %here this "ourt reminded the =e#artment of usti"e Se"retary torefrain from entertainin' #etitions for re$ie% %hen the "ase is already#endin' %ith this "ourt:"hanro les$irtualla%li rary;4<n order to a$oid a situation %here the o#inion of the Se"retary of usti"e

%ho re$ie%ed the a"tion of the s"al may e disre'arded y the trial "ourt,the Se"retary of usti"e should, as far as #ra"ti"a le, refrain fromentertainin' a #etition for re$ie% or a##eal from the a"tion of the s"al,%hen the "om#laint or information has already een led in the Court. hematter should e left entirely for the determination of the Court. *L

he trial "ourt should ha$e #ro"eeded %ith res#ondents =ela eTa Reyes and2analastas0 arrai'nment after the 6+ day #eriod from the lin' of the

etition for Re$ie% efore the =e#artment of usti"e on 2ar"h 8, ++L. 4t %asonly on Se#tem er 13, +1+ that the tem#orary restrainin' order %as issued

y the Court of &##eals. he trial "ourt erred %hen it did not a"t on the"riminal "ase durin' the interim #eriod. 4t had full "ontrol and dire"tion of the

"ase. &s ud'e 2o'ul reasoned in denyin' the motion to dismiss in Cres#o,failure to #ro"eed %ith the arrai'nment 5disre'ards the reBuirements of due#ro"ess ;and< erodes the Court0s inde#enden"e and inte'rity.5 *6

44

&""ordin' to & S C N, the Court of &##eals erred in ndin' that: a motionfor re"onsideration %as not ne"essary efore a #etition for "ertiorari "ould e

ledA the =e#artment of usti"e Se"retary "ommitted errors of !urisdi"tionsin"e the &'ra Resolution %as issued %ithin its authority and in a""ordan"e%ith settled la%s and !uris#ruden"eA and res#ondents %ere not lia le for

"o#yri'ht infrin'ement.

4n its assailed =e"ision, the Court of &##eals found that res#ondents"ommitted a #ro"edural error %hen they failed to le a motion forre"onsideration efore lin' the etition for Certiorari. ?o%e$er, the Court of&##eals held that a motion for re"onsideration %as unne"essary sin"e the&'ra Resolution %as a #atent nullity and it %ould ha$e een useless underthe "ir"umstan"es:"hanro les$irtualla%li rary



Gi$en that a readin' of the assailed Resolution and the instant re"ordsreadily re$eals errors of !urisdi"tion on the #art of res#ondent Se"retary,dire"t !udi"ial re"ourse is %arranted under the "ir"umstan"es. &side from thefa"t that said Resolution is a #atent nullity ha$in' een issued in 'ra$ea use of dis"retion amountin' to la"9 or e>"ess of !urisdi"tion, the lin' of a

motion for re"onsideration is e$idently useless on a""ount of the fa"t thatthe issues and ar'uments efore this Court ha$e already een duly raisedand a""ordin'ly del$ed into y res#ondent Se"retary in his dis#osition of the#etition a 4uo .*7 (Em#hasis in the ori'inal)4n l-a v. Jaco1i, *8 this "ourt ruled that a #etition for "ertiorari under Rule 6Lof the Rules of Court is #ro#er %hen assailin' ad$erse resolutions of the=e#artment of usti"e stemmin' from the determination of #ro a le "ause. */ ?o%e$er, 'ra$e a use of dis"retion must e alle'ed. L+

4n Sanrio Co-pany %i-ited v. %i-, L1 this "ourt stressed the #rose"utor0s rolein determinin' #ro a le "ause. udi"ial re$ie% %ill only lie %hen it is sho%n

that the #rose"utor a"ted %ith 'ra$e a use of dis"retion amountin' to la"9 ore>"ess of !urisdi"tion:"hanro les$irtualla%li rary& #rose"utor alone determines the suJ"ien"y of e$iden"e that %ill esta lish#ro a le "ause !ustifyin' the lin' of a "riminal information a'ainst theres#ondent. y %ay of e>"e#tion, ho%e$er, !udi"ial re$ie% is allo%ed %hereres#ondent has "learly esta lished that the #rose"utor "ommitted 'ra$ea use of dis"retion. ther%ise stated, su"h re$ie% is a##ro#riate only %henthe #rose"utor has e>er"ised his dis"retion in an ar itrary, "a#ri"ious,%himsi"al or des#oti" manner y reason of #assion or #ersonal hostility,#atent and 'ross enou'h to amount to an e$asion of a #ositi$e duty or$irtual refusal to #erform a duty en!oined y la%. L (Citations omitted)

Gra$e a use of dis"retion refers to:"hanro les$irtualla%li rarysu"h "a#ri"ious and %himsi"al e>er"ise of !ud'ment as is eBui$alent to la"9of !urisdi"tion. he a use of dis"retion must e 'ra$e as %here the #o%er ise>er"ised in an ar itrary or des#oti" manner y reason of #assion or #ersonalhostility and must e so #atent and 'ross as to amount to an e$asion of#ositi$e duty or to a $irtual refusal to #erform the duty en!oined y or to a"tat all in "ontem#lation of la%. L3

Resortin' to "ertiorari reBuires that there e there e 5no a##eal, or any#lain, s#eedy, and adeBuate remedy in the ordinary "ourse of la%;,<5 L* su"has a motion for re"onsideration. Generally, 5a motion for re"onsideration is a"ondition sine 4ua non efore a #etition for "ertiorari may lie, its #ur#ose

ein' to 'rant an o##ortunity for the ;tri unal or oJ"er< to "orre"t any errorattri uted to it y a re e>amination of the le'al and fa"tual "ir"umstan"es ofthe "ase.5 LL

?o%e$er, e>"e#tions to the rule e>ist:"hanro les$irtualla%li rary(a) %here the order is a #atent nullity, as %here the Court a 4uo had no

!urisdi"tionA ( ) %here the Buestions raised in the certiorari #ro"eedin' ha$eeen duly raised and #assed u#on y the lo%er "ourt, or are the same as



those raised and #assed u#on in the lo%er "ourtA (") %here there is an ur'entne"essity for the resolution of the Buestion and any further delay %ould#re!udi"e the interests of the Go$ernment or of the #etitioner or the su !e"tmatter of the a"tion is #erisha leA (d) %here, under the "ir"umstan"es, amotion for re"onsideration %ould e uselessA (e) %here #etitioner %as

de#ri$ed of due #ro"ess and there is e>treme ur'en"y for reliefA (f) %here, ina "riminal "ase, relief from an order of arrest is ur'ent and the 'rantin' ofsu"h relief y the trial Court is im#ro a leA (') %here the #ro"eedin's in thelo%er "ourt are a nullity for la"9 of due #ro"essA (h) %here the #ro"eedin's%as e9 parte or in %hi"h the #etitioner had no o##ortunity to o !e"tA and (i)%here the issue raised is one #urely of la% or %here #u li" interest isin$ol$ed. L6(Em#hasis in the ori'inal, "itations omitted)&s ar'ued y res#ondents, 5;a< se"ond motion for re"onsideration %ouldha$e een useless and futile sin"e the =e#artment< ;of< ;usti"e< had already#assed u#on the same issues t%i"e.5 L7 EBually #ressin' under the"ir"umstan"es %as the need to resol$e the matter, as the 4nformation0s lin'

%ould lead to res#ondents0 imminent arrest.L8

2oreo$er, =e#artment of usti"e =e#artment Cir"ular No. 7+ dated uly 3,+++, or the +++ N S Rules on &##eal, #ro$ides that no se"ond motion for

re"onsideration of the =e#artment of usti"e Se"retary0s resolution shall eentertained:"hanro les$irtualla%li rarySEC 4 N 13. 2otion for re"onsideration. he a''rie$ed #arty may le amotion for re"onsideration %ithin a non e>tendi le #eriod of ten (1+) daysfrom re"ei#t of the resolution on a##eal, furnishin' the ad$erse #arty and the

rose"ution J"e "on"erned %ith "o#ies thereof and su mittin' #roof ofsu"h ser$i"e. No se"ond or further motion for re"onsideration shall e

entertained. he &'ra Resolution %as the result of res#ondents0 2otion forRe"onsideration assailin' the Gon-ale- Resolution. o le a motion forre"onsideration of the &'ra Resolution %ould e su#erHuous. Res#ondents%ere, therefore, "orre"t in lin' the etition for Certiorari of the &'raResolution efore the Court of &##eals."rala%la%li rary

444

he Court of &##eals ruled that Se"retary &'ra "ommitted errors of !urisdi"tion, %hi"h then reBuired the 'rant of the %rit of

"ertiorari:"hanro les$irtualla%li rarySo $ie%ed, y orderin' the lin' of information %ithout #roof that #ro a le"ause e>ists to "har'e #etitioners %ith a "rime, res#ondent Se"retary "learly"ommitted an error of !urisdi"tion thus %arrantin' the issuan"e of the %rit of"ertiorari. Surely, #ro a le "ause "annot e had %hen the $ery #ro$isions ofthe statute e>"ul#ates "riminal lia ility in "ases "lassi ed as fair use of"o#yri'hted materials. he fa"t that they admittedly used the Reuters li$e$ideo feed is not, as a matter of "ourse, tantamount to "o#yri'ht



infrin'ement that %ould !ustify the lin' of an information a'ainst the#etitioners. L/

Error of !urisdi"tion must e distin'uished from error of !ud'ment:

& line must e dra%n et%een errors of !ud'ment and errors of !urisdi"tion.

&n error of !ud'ment is one %hi"h the "ourt may "ommit in the e>er"ise of its !urisdi"tion. &n error of !urisdi"tion renders an order or !ud'ment $oid or$oida le. Errors of !urisdi"tion are re$ie%a le on "ertiorariA errors of

!ud'ment, only y a##eal. 6+

4n People v. 0on. Sandi:an1ayan 61 :"hanro les$irtualla%li rary&n error o# =ud:-ent is one %hi"h the "ourt may "ommit in the e>er"ise of its

!urisdi"tion. &n error o# =urisdiction is one %here the a"t "om#lained of %asissued y the "ourt %ithout or in e>"ess of !urisdi"tion, or %ith 'ra$e a use of dis"retion, %hi"h is tantamount to la"9 or in e>"ess of !urisdi"tion and %hi"herror is "orre"ti le only y the e>traordinary %rit of "ertiorari. Certiorari %ill

not e issued to "ure errors of the trial "ourt in its a##re"iation of thee$iden"e of the #arties, or its "on"lusions an"hored on the said ndin's andits "on"lusions of la%. 6 (Em#hasis su##lied)

his "ourt has ado#ted a deferential attitude to%ards re$ie% of thee>e"uti$e0s ndin' of #ro a le "ause. 63 his is ased 5not only u#on theres#e"t for the in$esti'atory and ;#rose"utorial< #o%ers 'ranted y theConstitution to the e>e"uti$e de#artment ut u#on #ra"ti"ality as%ell.5 6* Re$ie% of the =e#artment of usti"e Se"retary0s de"ision or resolution%ill e allo%ed only %hen 'ra$e a use of dis"retion isalle'ed:"hanro les$irtualla%li rary

he #ull discretionary authority to deter-ine pro1a1le cause in a preli-inary

investi:ation to ascertain su cient :round #or the ;lin: o# in#or-ation rests&ith the e9ecutive 1ranch. ?en"e, !udi"ial re$ie% of the resolution of theSe"retary of usti"e is limited to a determination %hether there has een a'ra$e a use of dis"retion amountin' to la"9 or e>"ess of !urisdi"tion. Courts"annot su stitute the e>e"uti$e ran"h0s !ud'ment.

. . . .

It is only &here the decision o# the Justice Secretary is tainted &ith :ravea1use o# discretion a-ountin: to lac! or e9cess o# =urisdiction that the Courto# "ppeals -ay ta!e co:ni>ance o# the case in a petition #or certiorari under

Rule H o# the Revised Rules o# Civil Procedure. he Court of &##ealsde"ision may then e a##ealed to this Court y %ay of a #etition for re$ie%on "ertiorari. 6L (Em#hasis su##lied, "itations omitted)4n this "ase, it must e sho%n that Se"retary &'ra e>"eeded his authority%hen he re$ersed the ndin's of Se"retary Gon-ale-. his "ourt mustdetermine %hether there is #ro a le "ause to le an information for"o#yri'ht infrin'ement under the 4ntelle"tual ro#erty Code."rala%la%li rary



. . . 4n the Knited States, from %here %e orro%ed the "on"e#t of #ro a le"ause, the #re$ailin' de nition of #ro a le "ause isthis:"hanro les$irtualla%li rary4n dealin' %ith #ro a le "ause, ho%e$er, as the $ery name im#lies, %e deal

%ith #ro a ilities. hese are not te"hni"alA they are the fa"tual and #ra"ti"al"onsiderations of e$eryday life on %hi"h reasona le and #rudent men, notle'al te"hni"ians, a"t. he standard of #roof is a""ordin'ly "orrelati$e to%hat must e #ro$ed.

5 he su stan"e of all the de nitions5 of #ro a le "ause 5is a reasona le'round for elief of 'uilt.5 McCarthy v. 6e "r-it, ++ Pa. St. HA, H+, Buoted%ith a##ro$al in the Carroll o#inion. 67 K. S. at 161. &nd this 5means lessthan e$iden"e %hi"h %ould !ustify "ondemnation5 or "on$i"tion, as 2arshall,C. ., said for the Court more than a "entury a'o in %oc!e v. /nited States, 7Cran"h 33/, 3*8. Sin"e 2arshall0s time, at any rate, it has "ome to mean

more than are sus#i"ion: ro a le "ause e>ists %here 5the fa"ts and"ir"umstan"es %ithin their ;the oJ"ers0< 9no%led'e and of %hi"h they hadreasona ly trust%orthy information ;are< suJ"ient in themsel$es to %arranta man of reasona le "aution in the elief that5 an o ense has een or is

ein' "ommitted. Carroll v. /nited States, H /. S. *A , *H .

hese lon' #re$ailin' standards see9 to safe'uard "iti-ens from rash andunreasona le interferen"es %ith #ri$a"y and from unfounded "har'es of"rime. hey also see9 to 'i$e fair lee%ay for enfor"in' the la% in the"ommunity0s #rote"tion. e"ause many situations %hi"h "onfront oJ"ers inthe "ourse of e>e"utin' their duties are more or less am i'uous, room must

e allo%ed for some mista9es on their #art. ut the mista9es must e thoseof reasona le men, a"tin' on fa"ts leadin' sensi ly to their "on"lusions of#ro a ility. he rule of #ro a le "ause is a #ra"ti"al, nonte"hni"al "on"e#tiona ordin' the est "om#romise that has een found for a""ommodatin'these often o##osin' interests. ReBuirin' more %ould unduly ham#er la%enfor"ement. o allo% less %ould e to lea$e la% a idin' "iti-ens at themer"y of the oJ"ers0 %him or "a#ri"e.4n the hili##ines, there are four instan"es in the Re$ised Rules of Criminal

ro"edure %here #ro a le "ause is needed to e esta lished:

(1) 4n Se"tions 1 and 3 of Rule 11 : y the in$esti'atin' oJ"er, to

determine %hether there is suJ"ient 'round to en'ender a %ellfounded elief that a "rime has een "ommitted and the res#ondentis #ro a ly 'uilty thereof, and should e held for trial. & #reliminaryin$esti'ation is reBuired efore the lin' of a "om#laint orinformation for an o ense %here the #enalty #res"ri ed y la% is atleast four years, t%o months and one day %ithout re'ard to the neA

( ) 4n Se"tions 6 and / of Rule 11 : y the !ud'e, to determine %hether a



%arrant of arrest or a "ommitment order, if the a""used has alreadyeen arrested, shall e issued and that there is a ne"essity of #la"in'

the res#ondent under immediate "ustody in order not to frustrate theends of !usti"eA

(3) 4n Se"tion L( ) of Rule 113: y a #ea"e oJ"er or a #ri$ate #ersonma9in' a %arrantless arrest %hen an o ense has !ust een"ommitted, and he has #ro a le "ause to elie$e ased on #ersonal9no%led'e of fa"ts or "ir"umstan"es that the #erson to e arrestedhas "ommitted itA and

(*) 4n Se"tion * of Rule 1 6: y the !ud'e, to determine %hether a sear"h

%arrant shall e issued, and only u#on #ro a le "ause in "onne"tion%ith one s#e"i " o ense to e determined #ersonally y the !ud'eafter e>amination under oath or aJrmation of the "om#lainant andthe %itnesses he may #rodu"e, and #arti"ularly des"ri in' the #la"eto e sear"hed and the thin's to e sei-ed %hi"h may e any%herein the

hili##ines.

4n all these instan"es, the e$iden"e ne"essary to esta lish #ro a le "ause isased only on the li9elihood, or #ro a ility, of 'uilt. 7*

strada also hi'hli'hted that a 5;#reliminary in$esti'ation is not #art of the"riminal a"tion. 4t is merely #re#aratory and may e$en e dis#osed of in"ertain situations.5 7L

o determine %hether there is #ro a le "ause that res#ondents "ommitted"o#yri'ht infrin'ement, a re$ie% of the elements of the "rime, in"ludin' thee>istin' fa"ts, is reBuired."rala%la%li rary

D

& S C N "laims that ne%s foota'e is su !e"t to "o#yri'ht and #rohi ited useof "o#yri'hted material is #unisha le under the 4ntelle"tual ro#erty Code. 4tar'ues that the ne% foota'e is not a 5ne%s%orthy e$ent5 ut 5merely ana""ount of the arri$al of &n'elo dela Cru- in the hili##ines X the latter

ein' the ne%s%orthy e$ent5: 76 ChanRo lesDirtuala%li rary o e "lear, it is the e$ent itself or the arri$al of &n'elo dela Cru- %hi"h is not"o#yri'hta le e"ause that is the ne%s%orthy e$ent. ?o%e$er, any foota'e"reated from the e$ent itself, in this "ase the arri$al of &n'elo dela Cru-, areintelle"tual "reations %hi"h are "o#yri'hta le. hus, the foota'e "reated y& S C N durin' the arri$al of &n'elo dela Cru-, %hi"h in"ludes thestatements of =indo &m#aro, are "o#yri'hta le and #rote"ted y the la%s on"o#yri'ht. 77



n the other hand, res#ondents ar'ue that & S C N0s ne%s foota'e of&n'elo dela Cru-0s arri$al is not "o#yri'hta le or su !e"t to#rote"tion:"hanro les$irtualla%li raryCertainly, the arri$al of &n'elo ;d<ela Cru-, %hi"h aroused #u li" attentionand the "ons"iousness of the ili#ino #eo#le %ith re'ard to their "ountrymen,

Fs %or9in' in forei'n "ountries and ho% the hili##ine 'o$ernmentres#onds to the issues "on"ernin' them, #$ %" $ . here is no in'enuity orin$enti$eness added in the said ne%s foota'e. he $ideo foota'e of this5ne%s5 is not "o#yri'hta le y any le'al standard as fa"ts of e$eryday lifede#i"ted in the ne%s and items of #ress information is #art of the #u li"domain. 78 (Em#hasis in the ori'inal)

he ne%s foota'e is "o#yri'hta le.

he 4ntelle"tual ro#erty Code is "lear a out the ri'hts a orded to authors of$arious 9inds of %or9. Knder the Code, 5%or9s are #rote"ted y the sole fa"tof their "reation, irrespective o# their -ode or #or- o# e9pression, as %ell as

of their "ontent, Buality and #ur#ose.57/

hese in"lude 5;audio $isual %or9sand "inemato'ra#hi" %or9s and %or9s #rodu"ed y a #ro"ess analo'ous to"inemato'ra#hy or any #ro"ess for ma9in' audio$isual re"ordin's.5 8+

Contrary to the old "o#yri'ht la%, 81 the 4ntelle"tual ro#erty Code does notreBuire re'istration of the %or9 to fully re"o$er in an infrin'ement suit.Ne$ertheless, oth "o#yri'ht la%s #ro$ide that "o#yri'ht for a %or9 isa"Buired y an intelle"tual "reator from the moment of "reation. 8

4t is true that under Se"tion 17L of the 4ntelle"tual ro#erty Code, 5ne%s ofthe day and other mis"ellaneous fa"ts ha$in' the "hara"ter of mere items of

#ress information5 are "onsidered un#rote"ted su !e"t matter.83

?o%e$er,the Code does not state that e9pression of the ne%s of the day, #arti"ularly%hen it under%ent a "reati$e #ro"ess, is not entitled to #rote"tion.

&n idea or e$ent must e distin'uished from the e9pression of that idea ore$ent. &n idea has een li9ened to a 'host in that it 5must e s#o9en to alittle efore it %ill e>#lain itself.5 8* 4t is a "on"e#t that has eluded e>a"t le'alde nition. 8L o 'et a etter 'ras# of the idea@e>#ression di"hotomy, theetymolo'y of the term 5idea5 is tra"ed:"hanro les$irtualla%li rary

he %ord 5idea5 is deri$ed from a Gree9 term, meanin' 5a form, the loo9 ora##earan"e of a thin' as o##osed to its reality, from idein, to see.5 4nthe i-aeus, lato sa% ideas as eternal #aradi'ms, inde#endent o !e"ts to%hi"h the di$ine demiur'e loo9s as #atterns in formin' the %orld. his %aslater modi ed to the reli'ious "on"e#tion of ideas as the thou'hts of God. 54tis not a $ery lon' ste# to e>tend the term 0idea0 to "o$er #atterns, lue#rints,or #lans in anyone0s mind, not only in God0s.5 he %ord entered the ren"hand En'lish $erna"ular in the 16++s and #ossessed t%o meanin's. he rst%as the latoni" meanin' of a #erfe"t e>em#lar or #aradi'm. he se"ond,%hi"h #ro a ly has its ori'in %ith =es"artes, is of a mental "on"e#t or ima'e



or, more roadly, any o !e"t of the mind %hen it is a"ti$e. !e"ts of thou'htmay e>ist inde#endently. he sun e>ists (#ro a ly) efore and after you thin9of it. ut it is also #ossi le to thin9 of thin's that ha$e ne$er e>isted, su"h asa uni"orn or e'asus. ohn o"9e de ned ideas $ery "om#rehensi$ely, toin"lude: all o !e"ts of the mind. an'ua'e %as a %ay of translatin' the

in$isi le, hidden ideas that ma9e u# a #erson0s thou'hts into the e>ternal,#er"e#ti le %orld of arti"ulate sounds and $isi le %ritten sym ols that others"an understand. 86 (Citations omitted)

here is no one le'al de nition of 5idea5 in this !urisdi"tion. he term 5idea5is mentioned only on"e in the 4ntelle"tual ro#erty Code. 87 4n Joa4uin, Jr. v.6rilon, 88 a tele$ision format (i.e., a datin' sho% format) is not "o#yri'hta leunder Se"tion of residential =e"ree No. */A 8/ it is a mere"on"e#t:"hanro les$irtualla%li rary.=. No. */, Y , in enumeratin' %hat are su !e"t to "o#yri'ht, re#ers to

;nished &or!s and not to concepts. he copyri:ht does not e9tend to anidea, procedure, process, syste-, -ethod o# operation, concept, principle, or

discovery, re:ardless o# the #orin &hich it is descri1ed, e9plained,illustrated, or e-1odied in such &or!. hus, the ne% 4N E EC K&R ER I C =E ?E ?4 4 4NES #ro$ides:"hanro les$irtualla%li rary

SEC. 17L. Kn#rote"ted Su !e"t 2atter.XNot%ithstandin' the #ro$isions ofSe"tions 17 and 173, no #rote"tion shall e>tend, under this la%, to any idea,#ro"edure, system, method or o#eration, "on"e#t, #rin"i#le, dis"o$ery ormere data as su"h, e$en if they are e>#ressed, e>#lained, illustrated orem odied in a %or9A ne%s of the day and other mis"ellaneous fa"ts ha$in'the "hara"ter of mere items of #ress informationA or any oJ"ial te>t of ale'islati$e, administrati$e or le'al nature, as %ell as any oJ"ial translationthereof.

Fhat then is the su !e"t matter of #etitioners0 "o#yri'htW his Court is of theo#inion that #etitioner s copyri:ht covers audioDvisual recordin:s o# eachepisode o# Rhoda and Me, as #allin: &ithin the class o# &or!s -entioned inP.6. '+, K (M), to %it:"hanro les$irtualla%li raryCinemato'ra#hi" %or9s and %or9s #rodu"ed y a #ro"ess analo'ous to"inemato'ra#hy or any #ro"ess for ma9in' audio $isual re"ordin'sA

he copyri:ht does not e9tend to the :eneral concept or #or-at o# its datin::a-e sho&. &""ordin'ly, y the $ery nature of the su !e"t of #etitioner 40s"o#yri'ht, the in$esti'atin' #rose"utor should ha$e the o##ortunity to"om#are the $ideota#es of the t%o sho%s.

2ere des"ri#tion y %ords of the 'eneral format of the t%o datin' 'amesho%s is insuJ"ientA the #resentation of the master $ideota#e in e$iden"e%as indis#ensa le to the determination of the e>isten"e of #ro a le "ause.&s a#tly o ser$ed y res#ondent Se"retary of usti"e:

" television sho& includes -ore than -ere &ords can descri1e 1ecause itinvolves a &hole spectru- o# visuals and e<ects, video and audio, such thatno si-ilarity or dissi-ilarity -ay 1e #ound 1y -erely descri1in: the :eneral



copyri:htL#or-at o# 1oth datin: :a-e sho&s /+ (Em#hasis su##lied, "itationsomitted)4deas "an e either a stra"t or "on"rete. /1 4t is the "on"rete ideas that are'enerally referred to as e>#ression:"hanro les$irtualla%li rary

he %ords 5a stra"t5 and 5"on"rete5 arise in many "ases dealin' %ith the

idea@e>#ression distin"tion. he Ni"hols "ourt, for e>am#le, found that thedefendant0s lm did not infrin'e the #lainti s #lay e"ause it %as 5too'enerali-ed an a stra"tion from %hat #lainti %rote . . . only a #art of herideas.5 4n ichel v. Marcin, the "ourt said that authors may e>#loit fa"ts,e>#erien"es, eld of thou'ht, and 'eneral ideas found in another0s %or9,5#ro$ided they do not su stantially "o#y a "on"rete form, in %hi"h the"ir"umstan"es and ideas ha$e een de$elo#ed, arran'ed, and #ut intosha#e.5 ud'e ?and, in @ational Co-ics Pu1lications, Inc. v. $a&cettPu1lications, Inc. said that 5no one infrin'es, unless he des"ends so far into%hat is "on"rete as to in$ade. . . 0e>#ression.05

hese "ases seem to e distin'uishin' 5a stra"t5 ideas from 5"on"rete5tan'i le em odiments of these a stra"tions that may e termed e>#ression.?o%e$er, if the "on"rete form of a %or9 means more than the literale>#ression "ontained %ithin it, it is diJ"ult to determine %hat is meant y5"on"rete.5 We1ster s @e& &entieth Century 6ictionary o# the n:lish%an:ua:e #ro$ides se$eral meanin's for the %ord "on"rete. hese in"lude:5ha$in' a material, #er"e#ti le e>isten"eA of, elon'in' to, or "hara"teri-ed

y thin's or e$ents that "an e #er"ei$ed y the sensesA realA a"tualA5 and5referrin' to a #arti"ularA s#e"i ", not 'eneral or a stra"t.5 /

4n Pearl 3 6ean (Phil.), Incorporated v. Shoe-art, Incorporated, /3 this "ourt,"itin' the &meri"an "ase of Ba!er v. Selden, distin'uished "o#yri'ht from

#atents and illustrated ho% an idea or "on"e#t is di erent from thee>#ression of that idea:"hanro les$irtualla%li rary4n the oft "ited "ase of Ba!er vs. Selden, the Knited States Su#reme Courtheld that only the e9pression o# an idea is protected 1y copyri:ht, not theidea itsel#. 4n that "ase, the #lainti held the "o#yri'ht of a oo9 %hi"he>#ounded on a ne% a""ountin' system he had de$elo#ed. he #u li"ationillustrated lan9 forms of led'ers utili-ed in su"h a system. he defendantre#rodu"ed forms similar to those illustrated in the #lainti s "o#yri'hted

oo9. he KS Su#reme Court ruled that:"hanro les$irtualla%li rary5 here is no dou t that a %or9 on the su !e"t of oo9 9ee#in', thou'h onlye>#lanatory of %ell 9no%n systems, may e the su !e"t of a "o#yri'htA ut,then, it is "laimed only as a oo9, > > > ut there is a "lear distin"tion

et%een the oo9s, as su"h, and the art, %hi"h it is, intended to illustrate. he mere statement of the #ro#osition is so e$ident that it reBuires hardlyany ar'ument to su##ort ii. he same distin"tion may e #redi"ated of e$eryother art as %ell as that of oo99ee#in'.

& treatise on the "om#osition and use of medi"ines, e they old or ne%A onthe "onstru"tion and use of #lou'hs or %at"hes or "hurnsA or on the mi>ture



he #lausi ility of the "laim #ut for%ard y the "om#lainant in this "asearises from a "onfusion of ideas #rodu"ed y the #e"uliar nature of the artdes"ri ed in the oo9s, %hi"h ha$e een made the su !e"t of "o#yri'ht. 4ndes"ri in' the art, the illustrations and dia'rams em#loyed ha##ened to"orres#ond more "losely than usual %ith the a"tual %or9 #erformed y the

o#erator %ho uses the art. > > > he des"ri#tion of the art in a oo9, thou'hentitled to the ene t of "o#yri'ht, lays no foundation for an e>"lusi$e "laimto the art itself. he o !e"t of the one is e>#lanationA the o !e"t of the otheris use. he former may e se"ured y "o#yri'ht. he latter "an only ese"ured, if it "an e se"ured at all, y letters #atent.5 /* (Em#hasis su##lied)Ne%s or the e$ent itself is not "o#yri'hta le. ?o%e$er, an e$ent "an e"a#tured and #resented in a s#e"i " medium. &s re"o'ni-ed y this "ourtin Joa4uin, tele$ision 5in$ol$es a %hole s#e"trum of $isuals and e e"ts, $ideoand audio.5 /L Ne%s "o$era'e in tele$ision in$ol$es framin' shots, usin'ima'es, 'ra#hi"s, and sound e e"ts. 4t in$ol$es "reati$e #ro"ess andori'inality. ele$ision ne%s foota'e is an e>#ression of the ne%s.

4n the Knited States, a line of "ases d%elt on the #ossi ility of tele$isionne%s"asts to e "o#yri'hted. /7 2ost of these "ases fo"used on #ri$ateindi$iduals0 sale or resale of ta#es of ne%s road"asts. ConHi"tin' de"isions%ere rendered y its "ourts. Note%orthy, ho%e$er, is the =istri"t Court0s#ronoun"ement in Paci;c 3 Southern Co. v. 6uncan, /8 %hi"h in$ol$es a Ne%s2onitorin' Ser$i"e0s $ideota#in' and sale of F 4& Ds ne%s

road"asts:"hanro les$irtualla%li rary(t is a7iomatic that cop'right protection does not e7tend to ne s8events8 or the facts or ideas hich are the su"6ect of ne sreports. Miller v. /niversal City Studios, Inc., 6L+ . d 136L, 1368 (Lth Cir.

1/81)A Wain&ri:ht Securities, Inc. v. Wall Street ranscript Corp., LL8 . d /1,/L ( d Cir. 1/77), cert, denied, *3* K.S. 1+1*, /8 S.Ct. 73+, L* .Ed. d 7L/(1/78). 5ut it is e9ua$$' e$$-sett$ed that cop'right protection doese7tend to the reports themse$ves, as distinguished from thesu"stance of the information contained in the reports. Wain&ri:ht, LL8 . d at /LA International @e&s Service v. "ssociatedPress, *8 K.S. 1L, 3/ S.Ct. 68, 63 .Ed. 11 (1/18)A see Chica:o RecordD0erald Co. v. ri1une "ssn., 7L . 7/7 (7th Cir.1/ 1)A 1 Nimmer on Co#yri'htY .11; < (1/83). %op'right protects the manner of e7pression ofne s reports, 8the particu$ar form or co$$ocation of ords in hichthe riter has communicated it8 International @e&s Service, *8 K.S. at

3*, 3/ S.Ct. at 7+. Su"h #rote"tion e>tends to ele"troni" ne%s re#orts as%ell as %ritten re#orts. See 17 K.S.C. Y 1+ (a) (L), (6), and (7)A see also Io&aState /niversity Research $oundations, Inc. v. "-erican Broadcastin:Cos., 6 1 . d L7, 61 ( d Cir. 1/8+).5 (Em#hasis su##lied)

he idea@e>#ression di"hotomy has lon' een su !e"t to de ate in the eldof "o#yri'ht la%. & olishin' the di"hotomy has een #ro#osed, in that non#rote"ti ility of ideas should e re e>amined, if not stri"9en, from de"isionsand the la%:"hanro les$irtualla%li rary



4f the underlyin' #ur#ose of the "o#yri'ht la% is the dual one e>#ressed yord 2ans eld, the only e>"use for the "ontinuan"e of the idea e>#ression

test as a !udi"ial standard for determinin' #rote"ti ility %ould e that it %asor "ould e a truly useful method of determinin' the #ro#er alan"e et%eenthe "reator0s ri'ht to #ro t from his %or9 and the #u li"0s ri'ht that the

5#ro'ress of the arts not e retarded.5. . . ;&<s used in the #resent day "onte>t;,< the di"hotomy has little or norelationshi# to the #oli"y %hi"h it should e e"tuate. 4ndeed, all too often thes%ee#in' lan'ua'e of the "ourts re'ardin' the non#rote"ti ility of ideas'i$es the im#ression that this is of itself a #oli"y of the la%, instead of merelya "lumsy and outdated tool to a"hie$e a mu"h more asi" end. 1++

he idea@e>#ression di"hotomy is a "om#le> matter if one is tryin' todetermine %hether a "ertain material is a "o#y of another.1+1 hisdi"hotomy %ould e more rele$ant in determinin', for instan"e, %hether asta'e #lay %as an infrin'ement of an author0s oo9 in$ol$in' the same

"hara"ters and settin'. 4n this "ase, ho%e$er, res#ondents admitted that thematerial under re$ie% X %hi"h is the su !e"t of the "ontro$ersy X is ane>a"t "o#y of the ori'inal. Res#ondents did not su !e"t & S C N0s foota'e toany editin' of their o%n. he ne%s foota'e did not under'o anytransformation %here there is a need to tra"9 elements of the ori'inal.

?a$in' esta lished the #rote"ti le nature of ne%s foota'e, %e no% dis"ussthe "on"omitant ri'hts a""orded to authors. he authors of a %or9 are'ranted se$eral ri'hts in relation to it, in"ludin' "o#yri'ht or e"onomi"ri'hts:"hanro les$irtualla%li rarySEC 4 N 177. Co#yri'ht or E"onomi" Ri'hts. X Su !e"t to the #ro$isions of

Cha#ter D444, "o#yri'ht or e"onomi" ri'hts shall "onsist of the e>"lusi$e ri'htto "arry out, authori-e or #re$ent the follo%in'a"ts:"hanro les$irtualla%li rary177.1. Reproduction o# the &or! or su1stantial portion o# the &or! 177. . =ramati-ation, translation, ada#tation, a rid'ment, arran'ement or

other transformation of the %or9A 177.3. he rst #u li" distri ution of the ori'inal and ea"h "o#y of the %or9

y sale or other forms of transfer of o%nershi#A

177.*. Rental of the ori'inal or a "o#y of an audio$isual or "inemato'ra#hi"%or9, a %or9 em odied in a sound re"ordin', a "om#uter #ro'ram, a"om#ilation of data and other materials or a musi"al %or9 in 'ra#hi"form, irres#e"ti$e of the o%nershi# of the ori'inal or the "o#y %hi"h isthe su !e"t of the rentalA (n)

177.L. u li" dis#lay of the ori'inal or a "o#y of the %or9A



177.6. u li" #erforman"e of the %or9A and 177.7. Fther co--unication to the pu1lic o# the &or!. (Se". L, . =. No. */a)

(Em#hasis su##lied)Knder Se"tion 11 of the 4ntelle"tual ro#erty Code, road"astin'or'ani-ations are 'ranted a more s#e"i " set of ri'hts "alled related ornei'h orin' ri'hts:"hanro les$irtualla%li rarySEC 4 N 11. S"o#e of Ri'ht. X Su !e"t to the #ro$isions of Se"tion

1 , 1roadcastin: or:ani>ations shall en=oy the e9clusive ri:ht to carry out,authori>e or prevent any o# the #ollo&in: acts5

11.1. he re1roadcastin: o# their 1roadcasts

11. . he re"ordin' in any manner, in"ludin' the ma9in' of lms or the useof $ideo ta#e, of their road"asts for the #ur#ose of "ommuni"ation to

the #u li" of tele$ision road"asts of the sameA and 11.3. he use of su"h re"ords for fresh transmissions or for fresh re"ordin'.

(Se". L , .=. No. */) (Em#hasis su##lied)Se"tion 1 of the Code #ro$ides:

C?& ER D424 & 4 NS N R EC 4 N

Se"tion 1 . imitations on Ri'hts. Se"tions +3, +8 and +/ shall nota##ly %here the a"ts referred to in those Se"tions are related

to:"hanro les$irtualla%li rary1 .1. he use y a natural #erson e>"lusi$ely for his o%n #ersonal #ur#osesA


1 .3. Kse solely for the #ur#ose of tea"hin' or for s"ienti " resear"hA and

1 .*. air use of the road"ast su !e"t to the "onditions under Se"tion 18L.(Se". **, .=. No. */a)

he Code de nes %hat road"astin' is and %ho road"astin' or'ani-ations

in"lude:"hanro les$irtualla%li rary+ .7. 5 road"astin'5 means the transmission y %ireless means for the#u li" re"e#tion of sounds or of ima'es or of re#resentations thereofA su"htransmission y satellite is also 5 road"astin'5 %here the means forde"ry#tin' are #ro$ided to the #u li" y the road"astin' or'ani-ation or%ith its "onsentA



+ .8. 5 road"astin' or'ani-ation5 shall in"lude a natural #erson or a !uridi"al entity duly authori-ed to en'a'e in road"astin';.<=e$elo#ments in te"hnolo'y, in"ludin' the #ro"ess of #reser$in' on"ee#hemeral %or9s and disseminatin' them, resulted in the need to #ro$ide ane% 9ind of #rote"tion as distin'uished from "o#yri'ht. 1+ he desi'nation

5nei'h orin' ri'hts5 %as a re$iated from the #hrase 5ri'hts nei'h orin' to"o#yri'ht.5 1+3 Nei'h orin' or related ri'hts are of eBual im#ortan"e %ith"o#yri'ht as esta lished in the di erent "on$entions "o$erin' oth 9inds ofri'hts. 1+*

Se$eral treaties deal %ith nei'h orin' or related ri'hts of "o#yri'ht. 1+L hemost #rominent of these is the 54nternational Con$ention for the rote"tion of

erformers, rodu"ers of hono'rams and road"astin' r'ani-ations5(Rome Con$ention). 1+6

he Rome Con$ention #rote"ts the ri'hts of road"astin' or'ani-ations in

relation to their road"asts. &rti"le 444 of the Rome Con$ention enumeratesthe minimum ri'hts a""orded to road"astin'or'ani-ations:"hanro les$irtualla%li rary

&rti"le 132inimum Ri'hts for road"astin' r'ani-ations

road"astin' or'anisations shall en!oy the ri'ht to authori-e or #rohi it:

(a) the re road"astin' of their road"astsA ( ) the >ation of their road"astsA

(") the re#rodu"tion:

(i) of >ations, made %ithout their "onsent, of their road"astsA

(ii) of >ations, made in a""ordan"e %ith the #ro$isions of &rti"le 1L, oftheir road"asts, if the re#rodu"tion is made for #ur#oses di erentfrom those referred to in those #ro$isionsA

(d) the "ommuni"ation to the #u li" of their tele$ision road"asts if su"h

"ommuni"ation is made in #la"es a""essi le to the #u li" a'ainst

#ayment of an entran"e feeA it shall e a matter for the domesti" la% ofthe State %here #rote"tion of this ri'ht is "laimed to determine the"onditions under %hi"h it may e e>er"ised.

Fith re'ard to the nei'h orin' ri'hts of a road"astin' or'ani-ation in this !urisdi"tion, this "ourt has dis"ussed the di eren"e et%een road"astin'and re road"astin':"hanro les$irtualla%li rarySe"tion + .7 of the 4 Code de nes )roa&ca$'#% as 5the transmission y%ireless means for the #u li" re"e#tion of sounds or of ima'es or of



re#resentations thereofA su"h transmission y satellite is also 0 road"astin'0%here the means for de"ry#tin' are #ro$ided to the #u li" y the

road"astin' or'ani-ation or %ith its "onsent.5

n the other hand, r")roa&ca$'#% as de ned in &rti"le 3(') of the

4nternational Con$ention for the rote"tion of erformers, rodu"ers ofhono'rams and road"astin' r'ani-ations, other%ise 9no%n as the 1/61Rome Con$ention, of %hi"h the Re#u li" of the hili##ines is a si'natory, is5the simultaneous road"astin' y one road"astin' or'ani-ation of the

road"ast of another road"astin' or'ani-ation.5

. . . .

Knder the Rome Con$ention, re road"astin' is 5the simultaneousroad"astin' y one road"astin' or'ani-ation of the road"ast of anotherroad"astin' or'ani-ation.5 he For9in' a#er #re#ared y the Se"retariat of

the Standin' Committee on Co#yri'ht and Related Ri'hts de nesroad"astin' or'ani-ations as 5entities that ta9e the nan"ial and editorialres#onsi ility for the sele"tion and arran'ement of, and in$estment in, thetransmitted "ontent.5 1+7 (Em#hasis in the ori'inal, "itations omitted)

road"astin' or'ani-ations are entitled to se$eral ri'hts and to the#rote"tion of these ri'hts under the 4ntelle"tual ro#erty Code. Res#ondents0ar'ument that the su !e"t ne%s foota'e is not "o#yri'hta le is erroneous.

he Court of &##eals, in its assailed =e"ision, "orre"tly re"o'ni-ed thee>isten"e of & S C N0s "o#yri'ht o$er the ne%sfoota'e:"hanro les$irtualla%li rarySurely, #ri$ate res#ondent has a "o#yri'ht of its ne%s "o$era'e. Seemin'ly,

for airin' said $ideo feed, #etitioner G2& is lia le under the #ro$isions of the4ntelle"tual ro#erty Code, %hi"h %as ena"ted #ur#osely to #rote"t "o#yri'hto%ners from infrin'ement. 1+8

Ne%s as e>#ressed in a $ideo foota'e is entitled to "o#yri'ht #rote"tion.road"astin' or'ani-ations ha$e not only "o#yri'ht on ut also nei'h orin'

ri'hts o$er their road"asts. Co#yri'hta ility of a %or9 is di erent from fairuse of a %or9 for #ur#oses of ne%s re#ortin'."rala%la%li rary

D4

& S C N assails the Court of &##eals0 rulin' that the foota'e sho%n y G2&

7 falls under the s"o#e of Se"tion 1 . and 1 .* of the 4ntelle"tualro#erty Code:"hanro les$irtualla%li rary he e$iden"e on re"ord, as %ell as the dis"ussions a o$e, sho% that thefoota'e used y ;res#ondents< "ould hardly e "hara"teri-ed as a shorte>"er#t, as it %as aired o$er one and a half minutes.

urthermore, the foota'e used does not fall under the "ontem#lation ofSe"tion 1 . of the 4ntelle"tual ro#erty Code. & #lain readin' of the



#ro$ision %ould re$eal that "o#yri'hted material referred to in Se"tion 1are short #ortions of an artist0s #erforman"e under Se"tion +3, or a#rodu"er0s sound re"ordin's under Se"tions +8 and +/. Se"tion 1 doesnot refer to a"tual use of $ideo foota'e of another as its o%n.

. . . . he &n'elo dela Cru- foota'e does not fall under the rule on Se"tion 1 .* of the 4ntelle"tual ro#erty Code on fair use of the road"ast.

4n determinin' fair use, se$eral fa"tors are "onsidered, in"ludin' the natureof the "o#yri'hted %or9, and the amount and su stantiality of the #ersonused in relation to the "o#yri'hted %or9 as a %hole.

4n the usiness of tele$ision ne%s re#ortin', the nature of the "o#yri'hted%or9 or the $ideo foota'es, are su"h that, foota'e "reated, must e a no$elty

to e a 'ood re#ort. hus, %hen the . . . &n'elo dela Cru- foota'e %as usedy ;res#ondents<, the no$elty of the foota'e %as "learly a e"ted.

2oreo$er, 'i$en that a su stantial #ortion of the &n'elo dela Cru- foota'e%as utili-ed y G2& 7 for its o%n, its use "an hardly e "lassi ed as fair use.

?en"e, ;res#ondents< "ould not e "onsidered as ha$in' used the &n'elodela Cru- ;foota'e< follo%in' the #ro$isions on fair use.

4t is also %orthy to note that the ?onora le Court of &##eals seem to"ontradi"t itself %hen it relied on the #ro$isions of fair use in its assailed

rulin's "onsiderin' that it found that the &n'elo dela Cru- foota'e is not"o#yri'hta le, 'i$en that the fair use #resu##oses an e>istin' "o#yri'ht. hus, it is a##arent that the ndin's of the ?onora le Court of &##eals areerroneous and ased on %ron' assum#tions. 1+/ (Knders"orin' in the ori'inal)

n the other hand, res#ondents "ounter that G2& 70s use of & S C N0s ne%sfoota'e falls under fair use as de ned in the 4ntelle"tual ro#erty Code.Res#ondents, "itin' the Court of &##eals =e"ision, ar'ue that a stron'statutory defense ne'ates any ndin' of #ro a le "ause under the samestatute. he 4ntelle"tual ro#erty Code #ro$ides that fair use ne'atesinfrin'ement.

Res#ondents #oint out that u#on seein' & S C N0s re#orter =indo &m#aroon the foota'e, G2& 7 immediately shut o the road"ast. nly $e (L)se"onds #assed efore the foota'e %as "ut. hey ar'ue that this sho%s thatG2& 7 had no #rior 9no%led'e of & S C N0s o%nershi# of the foota'e or %asnoti ed of it. hey "laim that the &n'elo dela Cru- foota'e is "onsidered ashort e>"er#t of an e$ent0s 5ne%s5 foota'e and is "o$ered y fair use. 111



d. he e e"t of the use u#on the #otential mar9et for or $alue of the"o#yri'hted %or9.

Res#ondents alle'e that the ne%s foota'e %as only $e (L) se"onds lon',thus fallin' under fair use. & S C N elies this "ontention and ar'ues that

the foota'e aired for t%o ( ) minutes and *+ se"onds.113

&""ordin' to theCourt of &##eals, the #arties admitted that only $e (L) se"onds of the ne%sfoota'e %as road"asted y G2& 7. 11*

his "ourt de ned fair use as 5a #ri$ile'e to use the "o#yri'hted material in areasona le manner %ithout the "onsent of the "o#yri'ht o%ner or as "o#yin'the theme or ideas rather than their e>#ression.5 11L air use is an e>"e#tion tothe "o#yri'ht o%ner0s mono#oly of the use of the %or9 to a$oid stiHin' 5the$ery "reati$ity %hi"h that la% is desi'ned to foster.5 116

=eterminin' fair use reBuires a##li"ation of the four fa"tor test. Se"tion 18L

of the 4ntelle"tual ro#erty Code lists four (*) fa"tors to determine if there%as fair use of a "o#yri'hted %or9:

a. he #ur#ose and "hara"ter of the use, in"ludin' %hether su"h use is ofa "ommer"ial nature or is for non #ro t edu"ational #ur#osesA



d. he e e"t of the use u#on the #otential mar9et for or $alue of the

"o#yri'hted %or9.

irst, the #ur#ose and "hara"ter of the use of the "o#yri'hted material mustfall under those listed in Se"tion 18L, thus: 5"riti"ism, "omment, ne%sre#ortin', tea"hin' in"ludin' multi#le "o#ies for "lassroom use, s"holarshi#,resear"h, and similar #ur#oses.5 117 he #ur#ose and "hara"ter reBuirement isim#ortant in $ie% of "o#yri'ht0s 'oal to #romote "reati$ity and en"oura'e"reation of %or9s. ?en"e, "ommer"ial use of the "o#yri'hted %or9 "an e%ei'hed a'ainst fair use.

he 5transformati$e test5 is 'enerally used in re$ie%in' the #ur#ose and"hara"ter of the usa'e of the "o#yri'hted %or9. 118 his "ourt must loo9 into%hether the "o#y of the %or9 adds 5ne% e>#ression, meanin' or messa'e5 totransform it into somethin' else. 11/ 52eta use5 "an also o""ur %ithoutne"essarily transformin' the "o#yri'hted %or9 used. 1 +

Se"ond, the nature of the "o#yri'hted %or9 is si'ni "ant in de"idin' %hetherits use %as fair. 4f the nature of the %or9 is more fa"tual than "reati$e, thenfair use %ill e %ei'hed in fa$or of the user.



hird, the amount and su stantiality of the #ortion used is im#ortant todetermine %hether usa'e falls under fair use. &n e>a"t re#rodu"tion of a"o#yri'hted %or9, "om#ared to a small #ortion of it, "an result in the"on"lusion that its use is not fair. here may also e "ases %here, thou'h the

entirety of the "o#yri'hted %or9 is used %ithout "onsent, its #ur#osedetermines that the usa'e is still fair.1 1 or e>am#le, a #arody usin' asu stantial amount of "o#yri'hted %or9 may e #ermissi le as fair use aso##osed to a "o#y of a %or9 #rodu"ed #urely for e"onomi" 'ain.

astly, the e e"t of the use on the "o#yri'hted %or90s mar9et is also %ei'hedfor or a'ainst the user. 4f this "ourt nds that the use had or %ill ha$e ane'ati$e im#a"t on the "o#yri'hted %or90s mar9et, then the use is deemedunfair.

he stru"ture and nature of road"astin' as a usiness reBuires assi'ned

$alues for ea"h se"ond of road"ast or airtime. 4n most "ases, road"astin'or'ani-ations 'enerate re$enue throu'h sale of time or timeslots toad$ertisers, %hi"h, in turn, is ased on mar9etshare: 1 ChanRo lesDirtuala%li rary

n"e a ne%s road"ast has een transmitted, the road"ast e"omesrelati$ely %orthless to the station. 4n the "ase of the aerial road"asters,ad$ertisin' sales 'enerate most of the #ro ts deri$ed from ne%s re#orts.&d$ertisin' rates are, in turn, 'o$erned y mar9et share. 2ar9et share isdetermined y the num er of #eo#le %at"hin' a sho% at any #arti"ular time,relati$e to total $ie%ers at that time. Ne%s is y nature time limited, and sore road"asts are 'enerally of little %orth e"ause they dra% fe% $ie%ers.

Ne%s"asts "om#ete for mar9et share y #resentin' their ne%s in ana##ealin' format that %ill "a#ture a loyal audien"e. 0ence, the pri-aryreason #or copyri:htin: ne&scasts 1y 1roadcasters &ould see- to 1e to

prevent co-petin: stations #ro- re1roadcastin: current ne&s #ro- thestation &ith the 1est covera:e o# a particular ne&s ite-, thus-isappropriatin: a portion o# the -ar!et share.

f "ourse, in the real %orld there are e>"e#tions to this #erfe"t e"onomi"$ie%. ?o%e$er, there are also many "a$eats %ith these e>"e#tions. &"ommon e>"e#tion is that some stations re road"ast the ne%s of others. hecaveat is that :enerally, the t&o stations are not co-petin: #or -ar!et

share. C@@, #or e9a-ple, o#ten -a!es ne&s stories availa1le to local1roadcasters. irst, the lo"al road"aster is often not aJliated %ith a net%or9(hen"e its need for more "om#rehensi$e #ro'rammin'), "on nin' any#ossi le "om#etition to a small 'eo'ra#hi"al area. Se"ond, the lo"al

road"aster is not in "om#etition %ith CNN. 4ndi$iduals %ho do not ha$e"a le D (or a satellite dish %ith de"oder) "annot re"ei$e CNNA thereforethere is no "om#etition. . . . hird, CNN sells the ri'ht of re road"ast to thelo"al stations. ed urner, o%ner of CNN, does not ha$e irst &mendment



freedom of a""ess ar'ument foremost on his mind. (Else he %ould 'i$ee$eryone free "a le D so e$eryone "ould 'et CNN.) ?e is in the usiness fora #ro t. Gi$in' a%ay resour"es does not a #ro t ma9e. 1 3 (Em#hasissu##lied)

he hi'h $alue a orded to limited time #eriods is also seen in other media. 4n

so"ial media site Insta:ra-, users are allo%ed to #ost u# to only 1L se"ondsof $ideo. 1 * 4n short $ideo sharin' %e site 2ine, 1 L users are allo%ed a shorter#eriod of si> (6) se"onds #er #ost. he mo ile a##li"ation * Second

veryday ta9es it further y "a#turin' and stit"hin' one (1) se"ond of $ideofoota'e ta9en daily o$er a s#an of a "ertain #eriod. 1 6

Fhether the alle'ed $e se"ond foota'e may e "onsidered fair use is amatter of defense. Fe em#hasi-e that the "ase in$ol$es determination of#ro a le "ause at the #reliminary in$esti'ation sta'e. Raisin' the defense offair use does not automati"ally mean that no infrin'ement %as "ommitted.

he in$esti'atin' #rose"utor has full dis"retion to e$aluate the fa"ts,

alle'ations, and e$iden"e durin' #reliminary in$esti'ation. =efenses raiseddurin' #reliminary in$esti'ation are su !e"t to further #roof and e$aluationefore the trial "ourt. Gi$en the insuJ"ien"y of a$aila le e$iden"e,

determination of %hether the &n'elo dela Cru- foota'e is su !e"t to fair useis etter left to the trial "ourt %here the #ro"eedin's are "urrently #endin'.

G2& 70s re road"ast of & S C N0s ne%s foota'e %ithout the latter0s "onsentis not an issue. he mere a"t of re road"astin' %ithout authority from theo%ner of the road"ast 'i$es rise to the #ro a ility that a "rime %as"ommitted under the 4ntelle"tual ro#erty Code."rala%la%li rary

D44Res#ondents "annot in$o9e the defense of 'ood faith to ar'ue that no#ro a le "ause e>ists.

Res#ondents ar'ue that "o#yri'ht infrin'ement is -alu- in se, in that5;"<o#yin' alone is not %hat is ein' #rohi ited, ut its in!urious e e"t %hi"h"onsists in the liftin' from the "o#yri'ht o%ners0 lm or materials, that %erethe result of the latter0s "reati$ity, %or9 and #rodu"tions and %ithoutauthority, re#rodu"ed, sold and "ir"ulated for "ommer"ial use to thedetriment of the latter.5 1 7

4nfrin'ement under the 4ntelle"tual ro#erty Code is -alu- prohi1itu-. he4ntelle"tual ro#erty Code is a s#e"ial la%. Co#yri'ht is a statutory"reation:"hanro les$irtualla%li raryCo#yri'ht, in the stri"t sense of the term, is #urely a statutory ri'ht. 4t is ane% or inde#endent ri'ht 'ranted y the statute, and not sim#ly a #ree>istin' ri'ht re'ulated y the statute. ein' a statutory 'rant, the ri'hts areonly su"h as the statute "onfers, and may e o tained and en!oyed only %ith



?en"e, 5 Oi ntent to co--it the cri-e and intent to perpetrate the act -ust1e distin:uished. & #erson may not ha$e "ons"iously intended to "ommit a"rimeA ut he did intend to "ommit an a"t, and that a"t is, y the $ery natureof thin's, the "rime itself;.<5 13L Fhen an a"t is #rohi ited y a s#e"ial la%, itis "onsidered in!urious to #u li" %elfare, and the #erforman"e of the

#rohi ited a"t is the "rime itself.136

Dolition, or intent to "ommit the a"t, is di erent from "riminal intent. Dolitionor $oluntariness refers to 9no%led'e of the a"t ein' done. n the otherhand, "riminal intent X %hi"h is di erent from moti$e, or the mo$in' #o%erfor the "ommission of the "rime 137 X refers to the state of mind eyond$oluntariness. 4t is this intent that is ein' #unished y "rimes -ala in se.

Knli9e other !urisdi"tions that reBuire intent for a "riminal #rose"ution of"o#yri'ht infrin'ement, the hili##ines does not statutorily su##ort 'oodfaith as a defense. ther !urisdi"tions #ro$ide in their intelle"tual #ro#erty

"odes or rele$ant la%s that -ens rea, %hether e>#ress or im#lied, is anelement of "riminal "o#yri'ht infrin'ement. 138

4n Canada, "riminal o enses are "ate'ori-ed under three (3) 9inds: 5 the #ull-ens rea o<ence, meanin' the a""used0s a"tual or su !e"ti$e state of mindhas to e #ro$edA strict lia1ility o<ences %here no mens rea has to e #ro$ed

ut the a""used "an a$oid lia ility if he "an #ro$e he too9 all reasona leste#s to a$oid the #arti"ular e$entA ;and< a1solute lia1ility o<ences %here

arliament has made it "lear that 'uilt follo%s #roof of the #res"ri ed a"tonly.5 13/ e"ause of the use of the %ord 59no%in'ly5 in Canada0s Co#yri'ht&"t, it has een held that "o#yri'ht infrin'ement is a full -ens rea o ense. 1*+

4n the Knited States, %illful intent is reBuired for "riminal "o#yri'htinfrin'ement. 1*1 efore the #assa'e of the No Ele"troni" heft &"t, 5"i$il"o#yri'ht infrin'ements %ere $iolations of "riminal "o#yri'ht la%s only if adefendant %illfully infrin'ed a "o#yri'ht 0for #ur#oses of "ommer"ialad$anta'e or #ri$ate nan"ial 'ain.05 1* ?o%e$er, the No Ele"troni" heft &"tno% allo%s "riminal "o#yri'ht infrin'ement %ithout the reBuirement of"ommer"ial 'ain. he infrin'in' a"t may or may not e for #ro t. 1*3

here is a di eren"e, ho%e$er, et%een the reBuired lia ility in "i$il"o#yri'ht infrin'ement and that in "riminal "o#yri'ht infrin'ement in theKnited States. Ci$il "o#yri'ht infrin'ement does not reBuire "ul#a ility andem#loys a stri"t lia ility re'ime 1** %here 5la"9 of intention to infrin'e is not adefense to an a"tion for infrin'ement.5 1*L

4n the hili##ines, the 4ntelle"tual ro#erty Code, as amended, #ro$ides forthe #rose"ution of "riminal a"tions for the follo%in' $iolations of intelle"tual#ro#erty ri'hts: Re#etition of 4nfrin'ement of atent (Se"tion 8*)A Ktility2odel (Se"tion 1+8)A 4ndustrial =esi'n (Se"tion 11/)A rademar9 4nfrin'ement



(Se"tion 1LL in relation to Se"tion 17+)A Knfair Com#etition (Se"tion 168 inrelation to Se"tion 17+)A alse =esi'nations of ri'in, alse =es"ri#tion orRe#resentation (Se"tion 16/.1 in relation to Se"tion 17+)A infrin'ement of"o#yri'ht, moral ri'hts, #erformers0 ri'hts, #rodu"ers0 ri'hts, and

road"astin' ri'hts (Se"tion 177, 1/3, +3, +8 and 11 in relation to

Se"tion 17)A and other $iolations of intelle"tual #ro#erty ri'hts as may ede ned y la%.

he 4ntelle"tual ro#erty Code reBuires stri"t lia ility for "o#yri'htinfrin'ement %hether for a "i$il a"tion or a "riminal #rose"utionA it does notreBuire -ens rea or culpa :1*6 ChanRo lesDirtuala%li raryS CTI!N 216. R"("&#"$ or I% r#% "("%'. X

16.1. &ny #erson infrin'in' a ri'ht #rote"ted under this la% shall e lia le:

a. o an in!un"tion restrainin' su"h infrin'ement. he "ourt may also

order the defendant to desist from an infrin'ement, amon' others, to#re$ent the entry into the "hannels of "ommer"e of im#orted 'oodsthat in$ol$e an infrin'ement, immediately after "ustoms "learan"e ofsu"h 'oods.

. ay to the "o#yri'ht #ro#rietor or his assi'ns or heirs su"h a"tualdama'es, in"ludin' le'al "osts and other e>#enses, as he may ha$ein"urred due to the infrin'ement as %ell as the #ro ts the infrin'ermay ha$e made due to su"h infrin'ement, and in #ro$in' #ro ts the#lainti shall e reBuired to #ro$e sales only and the defendant shall

e reBuired to #ro$e e$ery element of "ost %hi"h he "laims, or, in lieu

of a"tual dama'es and #ro ts, su"h dama'es %hi"h to the "ourt shalla##ear to e !ust and shall not e re'arded as #enalty.

". =eli$er under oath, for im#oundin' durin' the #enden"y of the a"tion,u#on su"h terms and "onditions as the "ourt may #res"ri e, salesin$oi"es and other do"uments e$iden"in' sales, all arti"les and their#a"9a'in' alle'ed to infrin'e a "o#yri'ht and im#lements for ma9in'them.

d. =eli$er under oath for destru"tion %ithout any "om#ensation allinfrin'in' "o#ies or de$i"es, as %ell as all #lates, molds, or othermeans for ma9in' su"h infrin'in' "o#ies as the "ourt may order.

e. Su"h other terms and "onditions, in"ludin' the #ayment of moral ande>em#lary dama'es, %hi"h the "ourt may deem #ro#er, %ise andeBuita le and the destru"tion of infrin'in' "o#ies of the %or9 e$en inthe e$ent of a"Buittal in a "riminal "ase.

16. . 4n an infrin'ement a"tion, the "ourt shall also ha$e the #o%er to orderthe sei-ure and im#oundin' of any arti"le %hi"h may ser$e as e$iden"e in



the "ourt #ro"eedin's. (Se". 8. .=. No. */a)

S CTI!N 217, Cr#(#%a4 "%a4'#"$.

17.1. "ny person in#rin:in: any ri:ht secured 1y provisions o# Part I2 o# this

"ct or aidin: or a1ettin: such in#rin:e-ent shall e 'uilty of a "rime#unisha le y:

a. 4m#risonment of one (1) year to three (3) years #lus a ne ran'in'from ifty thousand #esos ( L+,+++) to ne hundred fty thousand#esos ( 1L+,+++) for the rst o ense.

. 4m#risonment of three (3) years and one (1) day to si> (6) years #lus ane ran'in' from ne hundred fty thousand #esos ( 1L+,+++) to i$e

hundred thousand #esos ( L++,+++) for the se"ond o ense.

". 4m#risonment of si> (6) years and one (1) day to nine (/) years #lus ane ran'in' from i$e hundred thousand #esos ( L++,+++) to ne

million $e hundred thousand #esos ( 1,L++,+++) for the third andsu seBuent o enses.

d. 4n all "ases, su sidiary im#risonment in "ases of insol$en"y.

17. . 4n determinin' the num er of years of im#risonment and the amountof ne, the "ourt shall "onsider the $alue of the infrin'in' materials that thedefendant has #rodu"ed or manufa"tured and the dama'e that the "o#yri'hto%ner has su ered y reason of the infrin'ement.

17.3. &ny #erson %ho at the time %hen "o#yri'ht su sists in a %or9 has inhis #ossession an arti"le %hi"h he 9no%s, or ou'ht to 9no%, to e aninfrin'in' "o#y of the %or9 for the #ur#ose of:

a. Sellin', lettin' for hire, or y %ay of trade o erin' or e>#osin' for sale,or hire, the arti"leA

. =istri utin' the arti"le for #ur#ose of trade, or for any other #ur#ose toan e>tent that %ill #re!udi"e the ri'hts of the "o#yri'ht o%ner in the%or9A or

". rade e>hi it of the arti"le in #u li", shall e 'uilty of an o ense andshall e lia le on "on$i"tion to im#risonment and ne as a o$ementioned. (Se". /, .=. No. */a) (Em#hasis su##lied)

he la% is "lear. 4nasmu"h as there is %isdom in #rioriti-in' the Ho% ande>"han'e of ideas as o##osed to re%ardin' the "reator, it is the #lain readin'of the la% in "on!un"tion %ith the a"tions of the le'islature to %hi"h %e defer.Fe ha$e "ontinuously 5re"o'ni-ed the #o%er of the le'islature . . . to for id



"ertain a"ts in a limited "lass of "ases and to ma9e their "ommission "riminal%ithout re'ard to the intent of the doer. Su"h le'islati$e ena"tments are

ased on the e>#erien"e that re#ressi$e measures %hi"h de#end for theireJ"ien"y u#on #roof of the dealer0s 9no%led'e or of his intent are of littleuse and rarely a""om#lish their #ur#oses.5 1*7

Res#ondents ar'ue that li$e road"ast of ne%s reBuires a di erent treatmentin terms of 'ood faith, intent, and 9no%led'e to "ommit infrin'ement. oar'ue this #oint, they rely on the di eren"es of the media used in 0a1ana etal. v. Ro1les, Colu-1ia Pictures v. Court o# "ppeals, and this"ase:"hanro les$irtualla%li rary

etitioner & S C N ar'ues that la"9 of noti"e that the &n'elo dela Cru- %asunder em ar'o is not a defense in "o#yri'ht infrin'ement and "ites the "aseof Colu-1ia Pictures vs. Court o# "ppeals and 0a1ana et al. vs. Ro1les (31+SCR& L11). ?o%e$er, these "ases refer to J4( a%& 4#'"rar or %hereo $iously there is 5"o#yin'5 from an e>istin' material so that the "o#ier

9ne% that he is "o#yin' from an e>istin' material not o%ned y him. ut,ho% "ould res#ondents 9no% that %hat they are 5"o#yin' %as not ;theirs<5%hen 'h" "r" %o' co #% ut merely re"ei$in' li$e $ideo feed fromReuters and CNN %hi"h they airedW Fhat they 9ne% and %hat they aired %asthe R"/'"r$ 4#<" <#&"o ""& and the CNN ""& %hi"h G2& 7 is authori-edto "arry in its ne%s road"ast, it ein' a su s"ri er of these "om#anies;.<

4t is a#t to stress that the su !e"t of the alle'ed "o#yri'ht infrin'ementis %o' a lm or literary %or9 ut 4#<" )roa&ca$' of ne%s foota'e. 4n a lm orliterary %or9, the infrin'er is "onfronted fa"e to fa"e %ith the material he isalle'edly "o#yin' and therefore 9no%s, or is #resumed to 9no%, that %hat he

is "o#yin' is o%ned y another. K#on the other hand, in 4#<" )roa&ca$', thealle'ed infrin'er is %o' "onfronted %ith the fa"t that the material he airs orre road"asts is o%ned y another, and therefore, he "annot e "har'ed of9no%led'e of o%nershi# of the material y another. his s#e"ially o tains inthe &n'elo dela Cru- ne%s foota'e %hi"h G2& 7 re"ei$ed from Reuters andCNN. Reuters and CNN %ere eamin' li$e $ideos from the "o$era'e %hi"hG2& 7 re"ei$ed as a su s"ri er and, in the e>er"ise of its ri'hts as asu s"ri er, G2& 7 #i"9ed u# the li$e $ideo and simultaneously re road"astit. 4n simultaneously road"astin' the li$e $ideo foota'e of Reuters, G2& 7did not "o#y the $ideo foota'e of #etitioner & S C N;.< 1*8 (Em#hasis in theori'inal)Res#ondents0 ar'uments must fail.

Res#ondents are in$ol$ed and e>#erien"ed in the road"astin' usiness. hey 9ne% that there %ould e "onseBuen"es in "arryin' &. S C N0s foota'ein their road"ast. hat is %hy G2& 7 alle'edly "ut the feed from Reutersu#on seein' & S C N0s lo'o and re#orter. o admit a di erent treatment for

road"asts %ould mean a andonment of a road"astin' or'ani-ation0sminimum ri'hts, in"ludin' "o#yri'ht on the road"ast material and the ri'ht



a'ainst unauthori-ed re road"ast of "o#yri'hted material. he nature ofroad"ast te"hnolo'y is #re"isely %hy related or nei'h orin' ri'hts %ere

"reated and de$elo#ed. Car$in' out an e>"e#tion for li$e road"asts %ould'o a'ainst our "ommitments under rele$ant international treaties anda'reements, %hi"h #ro$ide for the same minimum ri'hts. 1*/

Contrary to res#ondents0 assertion, this "ourt in 0a1ana, 1L+ reiteratin' therulin' in Colu-1ia Pictures, 1L1 ruled that la"9 of 9no%led'e of infrin'ement isnot a $alid defense. 0a1ana and Colu-1ia Pictures may ha$e di erentfa"tual s"enarios from this "ase, ut their rulin's on "o#yri'ht infrin'ementare analo'ous. 4n 0a1ana, #etitioners %ere the authors and "o#yri'ht o%nersof En'lish te>t oo9s and %or9 oo9s. he "ase %as an"hored on the#rote"tion of literary and artisti" "reations su"h as oo9s. 4n Colu-1iaPictures, $ideo ta#es of "o#yri'hted lms %ere the su !e"t of the "o#yri'htinfrin'ement suit.

4n 0a1ana, 9no%led'e of the infrin'ement is #resumed %hen the infrin'er"ommits the #rohi ited a"t:"hanro les$irtualla%li rary he essen"e of intelle"tual #ira"y should e essayed in "on"e#tual terms inorder to unders"ore its 'ra$ity y an a##ro#riate understandin' thereof.4nfrin'ement of a "o#yri'ht is a tres#ass on a #ri$ate domain o%ned ando""u#ied y the o%ner of the "o#yri'ht, and, therefore, #rote"ted y la%,and infrin'ement of "o#yri'ht, or #ira"y, %hi"h is a synonymous term in this"onne"tion, "onsists in the doin' y any #erson, %ithout the "onsent of theo%ner of the "o#yri'ht, of anythin' the sole ri'ht to do %hi"h is "onferred ystatute on the o%ner of the "o#yri'ht.

. . . .

" copy o# a piracy is an in#rin:e-ent o# the ori:inal, and it is no de#ense that the pirate, in such cases, did not !no& &hether or not he &as in#rin:in: anycopyri:ht he at least !ne& that &hat he &as copyin: &as not his, and hecopied at his peril.

. . . .

4n "ases of infrin'ement, "o#yin' alone is not %hat is #rohi ited. he "o#yin'must #rodu"e an 5in!urious e e"t5. ?ere, the in!ury "onsists in thatres#ondent Ro les lifted from #etitioners0 oo9 materials that %ere the resultof the latter0s resear"h %or9 and "om#ilation and misre#resented them asher o%n. She "ir"ulated the oo9 =E for "ommer"ial use and did nota"9no%led'e #etitioners as her sour"e. 1L (Em#hasis su##lied)0a1ana and Colu-1ia Pictures did not reBuire 9no%led'e of the infrin'ementto "onstitute a $iolation of the "o#yri'ht. ne does not need to 9no% that heor she is "o#yin' a %or9 %ithout "onsent to $iolate "o#yri'ht la%. Noti"e offa"t of the em ar'o from Reuters or CNN is not material to nd #ro a le



"ause that res#ondents "ommitted infrin'ement. Pno%led'e of infrin'ementis only material %hen the #erson is "har'ed of aidin' and a ettin' a"o#yri'ht infrin'ement under Se"tion 17 of the 4ntelle"tual ro#ertyCode. 1L3

Fe loo9 at the #ur#ose of "o#yri'ht in relation to "riminal #rose"utionsreBuirin' %illfulness:"hanro les$irtualla%li rary2ost im#ortantly, in de nin' the "ontours of %hat it means to %illfullyinfrin'e "o#yri'ht for #ur#oses of "riminal lia ility, the "ourts shouldremem er the ultimate aim of "o#yri'ht. Co#yri'ht is not #rimarily a out#ro$idin' the stron'est #ossi le #rote"tion for "o#yri'ht o%ners so that theyha$e the hi'hest #ossi le in"enti$e to "reate more %or9s. he "ontrol 'i$ento "o#yri'ht o%ners is only a means to an end: the #romotion of 9no%led'eand learnin'. &"hie$in' that underlyin' 'oal of "o#yri'ht la% also reBuiresa""ess to "o#yri'hted %or9s and it reBuires #ermittin' "ertain 9inds of usesof "o#yri'hted %or9s %ithout the #ermission of the "o#yri'ht o%ner. Fhile a

#arti"ular defendant may a##ear to e deser$in' of "riminal san"tions, thestandard for determinin' %illfulness should e set %ith referen"e to thelar'er 'oals of "o#yri'ht em odied in the Constitution and the history of"o#yri'ht in this "ountry. 1L*

4n addition, 5;t<he essen"e of intelle"tual #ira"y should e essayed in"on"e#tual terms in order to unders"ore its 'ra$ity y an a##ro#riateunderstandin' thereof. 4nfrin'ement of a "o#yri'ht is a tres#ass on a #ri$atedomain o%ned and o""u#ied y the o%ner of the "o#yri'ht, and, therefore,#rote"ted y la%, and infrin'ement of "o#yri'ht, or #ira"y, %hi"h is asynonymous term in this "onne"tion, "onsists in the doin' y any #erson,%ithout the "onsent of the o%ner of the "o#yri'ht, of anythin' the sole ri'ht

to do %hi"h is "onferred y statute on the o%ner of the "o#yri'ht.51LL

4ntelle"tual #ro#erty ri'hts, su"h as "o#yri'ht and the nei'h orin' ri'hta'ainst re road"astin', esta lish an arti "ial and limited mono#oly to re%ard"reati$ity. Fithout these le'ally enfor"ea le ri'hts, "reators %ill ha$ee>treme diJ"ulty re"o$erin' their "osts and "a#turin' the sur#lus or #ro t of their %or9s as reHe"ted in their mar9ets. his, in turn, is ased on the theorythat the #ossi ility of 'ain due to "reati$e %or9 "reates an in"enti$e %hi"hmay im#ro$e eJ"ien"y or sim#ly enhan"e "onsumer %elfare or utility. 2ore"reati$ity redounds to the #u li" 'ood.

hese, ho%e$er, de#end on the "ertainty of enfor"ement. Creati$ity, y its$ery nature, is $ulnera le to the free rider #ro lem. 4t is easily re#li"ateddes#ite the "osts to and e orts of the ori'inal "reator. he more useful the"reation is in the mar9et, the 'reater the #ro#ensity that it %ill e "o#ied.

he most "reati$e and in$enti$e indi$iduals are usually those %ho are una leto re"o$er on their "reations.

&r'uments a'ainst stri"t lia ility #resu##ose that the hili##ines has a so"ial,



histori"al, and e"onomi" "limate similar to those of Festern !urisdi"tions. &sit stands, there is a "urrent need to stren'then intelle"tual #ro#erty#rote"tion.

hus, unless "learly #ro$ided in the la%, o enses in$ol$in' infrin'ement of

"o#yri'ht #rote"tions should e "onsidered -alu- prohi1itu-. 4t is the a"t of infrin'ement, not the intent, %hi"h "auses the dama'e. o reBuire or assumethe need to #ro$e intent defeats the #ur#ose of intelle"tual #ro#erty#rote"tion.

Ne$ertheless, #roof eyond reasona le dou t is still the standard for "riminal#rose"utions under the 4ntelle"tual ro#erty Code."rala%la%li rary

D444

Res#ondents ar'ue that G2& 70s oJ"ers and em#loyees "annot e held

lia le for infrin'ement under the 4ntelle"tual ro#erty Code sin"e it does note>#ressly #ro$ide dire"t lia ility of the "or#orate oJ"ers. hey e>#lain that5(i) a cor ora'#o% may e "har'ed and #rose"uted for a "rime %here the#enalty is ne or oth im#risonment and ne, and if found 'uilty, may

e J%"&A or (ii) a "or#oration may "ommit a "rime ut if the statute#res"ri es the #enalty therefore to e su ered y the "or#orate oJ"ers,dire"tors or em#loyees or other #ersons, the latter shall e res#onsi le forthe o ense.5 1L6

Se"tion 17 of the 4ntelle"tual ro#erty Code states that 5any #erson5 maye found 'uilty of infrin'ement. 4t also im#oses the #enalty of oth

im#risonment and ne:"hanro les$irtualla%li rarySe"tion 17. Criminal enalties. 17.1. "ny person in#rin:in: any ri:htsecured 1y provisions o# Part I2 o# this "ct or aidin: or a1ettin: suchin#rin:e-ent shall 1e :uilty o# a cri-e #unisha le y:(a) 4m#risonment of one (1) year to three (3) years #lus a ne ran'in' from

ifty thousand #esos ( L+,+++) to ne hundred fty thousand #esos( 1L+,+++) for the rst o ense.

( ) 4m#risonment of three (3) years and one (1) day to si> (6) years #lus a

ne ran'in' from ne hundred fty thousand #esos ( 1L+,+++) to i$ehundred thousand #esos ( L++,+++) for the se"ond o ense.

(") 4m#risonment of si> (6) years and one (1) day to nine (/) years #lus a

ne ran'in' from $e hundred thousand #esos ( L++,+++) to ne million$e hundred thousand #esos ( 1,L++,+++) for the third and su seBuent

o enses. (d) 4n all "ases, su sidiary im#risonment in "ases of insol$en"y. (Em#hasis



su##lied)Cor#orations ha$e se#arate and distin"t #ersonalities from their oJ"ers ordire"tors. 1L7 his "ourt has ruled that "or#orate oJ"ers and@or a'ents may eheld indi$idually lia le for a "rime "ommitted under the 4ntelle"tual ro#ertyCode: 1L8 ChanRo lesDirtuala%li rary

etitioners, ein' "or#orate oJ"ers and@or dire"tors, throu'h %hose a"t,default or omission the "or#oration "ommits a "rime, may themsel$es eindi$idually held ans%era le for the "rime. . . . he e>isten"e of the "or#orateentity does not shield from #rose"ution the "or#orate a'ent %ho 9no%in'lyand intentionally "aused the "or#oration to "ommit a "rime. hus, #etitioners"annot hide ehind the "loa9 of the se#arate "or#orate #ersonality of the"or#oration to es"a#e "riminal lia ility. & "or#orate oJ"er "annot #rote"thimself ehind a "or#oration %here he is the a"tual, #resent and eJ"ienta"tor. 1L/

?o%e$er, the "riminal lia ility of a. "or#oration0s oJ"ers or em#loyees stemsfrom their a"ti$e #arti"i#ation in the "ommission of the %ron'ful

a"t:"hanro les$irtualla%li rary he #rin"i#le a##lies %hether or not the "rime reBuires the "ons"iousness of%ron'doin'. 4t a##lies to those "or#orate a'ents %ho themsel$es "ommit the"rime and to those, %ho, y $irtue of their mana'erial #ositions or othersimilar relation to the "or#oration, "ould e deemed res#onsi le for its"ommission, i# 1y virtue o# their relationship to the corporation, they had the

po&er to prevent the act. Moreover, all parties active in pro-otin: a cri-e,&hether a:ents or not, are principals. Fhether su"h oJ"ers or em#loyeesare ene ted y their deli"tual a"ts is not a tou"hstone of their "riminallia ility. ene t is not an o#erati$e fa"t. 16+ (Em#hasis su##lied)&n a""used0s #arti"i#ation in "riminal a"ts in$ol$in' $iolations of intelle"tual#ro#erty ri'hts is the su !e"t of alle'ation and #roof. he sho%in' that thea""used did the a"ts or "ontri uted in a meanin'ful %ay in the "ommission of the infrin'ements is "ertainly di erent from the ar'ument of la"9 of intent or'ood faith. &"ti$e #arti"i#ation reBuires a sho%in' of o$ert #hysi"al a"ts orintention to "ommit su"h a"ts. 4ntent or 'ood faith, on the other hand, areinferen"es from a"ts #ro$en to ha$e een or not een "ommitted.

Fe nd that the =e#artment of usti"e "ommitted 'ra$e a use of dis"retion%hen it resol$ed to le the 4nformation a'ainst res#ondents des#ite la"9 of#roof of their a"tual #arti"i#ation in the alle'ed "rime.

rderin' the in"lusion of res#ondents Go-on, G2& 7 residentA =ua$it, r.,E>e"uti$e Di"e residentA lores, Di"e resident for Ne%s and u li" & airsAand Soho, =ire"tor for Ne%s, as res#ondents, Se"retary &'ra o$erturned theCity rose"utor0s ndin' that only res#ondents =ela eTa Reyes and2analastas are res#onsi le for the "rime "har'ed due to their duties. 161 he&'ra Resolution reads:"hanro les$irtualla%li rary

hus, from the $ery nature of the o ense and the #enalty in$ol$ed, it isne"essary that G2& 70s dire"tors, oJ"ers, em#loyees or other oJ"ers



re-iss in their duty in ascertainin: i# the said #oota:e has ane-1ar:o. 16* (Em#hasis su##lied)Fe a'ree %ith the ndin's as to res#ondents =ela eTa Reyes and2analastas. oth res#ondents "ommitted a"ts that #romoted infrin'ement of & S C N0s foota'e. Fe note that em ar'oes are "ommon o""urren"es in and

et%een ne%s a'en"ies and@or road"ast or'ani-ations.16L

Knder its#erations Guide, Reuters has t%o ( ) ty#es of em ar'oes: transmissionem ar'o and #u li"ation em ar'o. 166 Knder & S C N0s ser$i"e "ontra"t %ithReuters, Reuters %ill em ar'o any "ontent "ontri uted y & S C N fromother road"ast su s"ri ers %ithin the same 'eo'ra#hi"allo"ation:"hanro les$irtualla%li rary*a. Contri uted Content

Iou a'ree to su##ly us at our reBuest %ith ne%s and s#orts ne%s stonesroad"ast on the Client Ser$i"e of u# to three (3) minutes ea"h for use in our

Ser$i"es on a non e>"lusi$e asis and at a "ost of KSZ3++.++ ( hree ?undred

Knited States =ollars) #er story. In respect o# such ite-s &e a:ree toe-1ar:o the- a:ainst use 1y other 1roadcast su1scri1ers in the erritoryand con;r- &e &ill o1serve all other conditions o# usa:e re:ardin:Contri1uted Content, as speci;ed in Section . o# the Reuters BusinessPrinciples #or elevision Services. or the #ur#oses of "lari "ation, any'eo'ra#hi"al restri"tion im#osed y you on your use of Contri uted Content%ill not #re$ent us or our "lients from in"ludin' su"h Contri uted Content inonline transmission ser$i"es in"ludin' the internet. Fe a"9no%led'eContri uted Content is your "o#yri'ht and %e %ill not a"Buire any intelle"tual#ro#erty ri'hts in the Contri uted Content. 167 (Em#hasis su##lied)Res#ondents =ela eTa Reyes and 2analastas merely denied re"ei$in' the

ad$isory sent y Reuters to its "lients, in"ludin' G2& 7. &s in the re"ords, thead$isory reads:"hanro les$irtualla%li rary&=D4S RI [[[ 4DE C DER &NS[[[

?4 4 4NES: ? S &GE RE KRN

& EN 4 N & C 4EN S

E&SE E &=D4SE= ?E F4NG 4DE C DER &NNE= R ?KRS=&I, K I :

. . . .

S KRCE: & S C N D &N= FE RES R4C 4 NS: N &CCESS ?4 4 4NES. 168

here is #ro a le "ause that res#ondents =ela eTa Reyes and 2analastasdire"tly "ommitted "o#yri'ht infrin'ement of & S C N0s ne%s foota'e to%arrant #ier"in' of the "or#orate $eil. hey are res#onsi le in airin' theem ar'oed &n'elo dela Cru- foota'e. hey "ould ha$e #re$ented the a"t ofinfrin'ement had they een dili'ent in their fun"tions as ?ead of Ne%s



#erations and ro'ram 2ana'er.

Se"retary &'ra, ho%e$er, "ommitted 'ra$e a use of dis"retion %hen heordered the lin' of the 4nformation a'ainst all res#ondents des#ite theerroneous #ier"in' of the "or#orate $eil. Res#ondents Go-on, =ua$it, r.,

lores, and Soho "annot e held lia le for the "riminal lia ility of the"or#oration.

2ere mem ershi# in the oard or ein' resident #er se does not mean9no%led'e, a##ro$al, and #arti"i#ation in the a"t alle'ed as "riminal. heremust e a sho%in' of a"ti$e #arti"i#ation, not sim#ly a "onstru"ti$e one.

Knder #rin"i#les of "riminal la%, the #rin"i#als of a "rime are those 5%ho ta9ea dire"t #art in the e>e"ution of the a"tA ;t<hose %ho dire"tly for"e or indu"eothers to "ommit itA ;or< ;t<hose %ho "oo#erate in the "ommission of theo ense y another a"t %ithout %hi"h it %ould not ha$e een

a""om#lished.516/

here is "ons#ira"y 5%hen t%o or more #ersons "ome to ana'reement "on"ernin' the "ommission of a felony and de"ide to "ommitit5: 17+ ChanRo lesDirtuala%li raryCons#ira"y is not #resumed. i9e the #hysi"al a"ts "onstitutin' the "rimeitself, the elements of "ons#ira"y must e #ro$en eyond reasona le dou t.Fhile "ons#ira"y need not e esta lished y dire"t e$iden"e, for it may einferred from the "ondu"t of the a""used efore, durin' and after the"ommission of the "rime, all ta9en to'ether, ho%e$er, the e$iden"e must estron' enou'h to sho% the "ommunity of "riminal desi'n. or "ons#ira"y toe>ist, it is essential that there must e a "ons"ious desi'n to "ommit ano ense. Cons#ira"y is the #rodu"t of intentionality on the #art of the "ohorts.

It is necessary that a conspirator should have per#or-ed so-e overt act as adirect or indirect contri1ution to the e9ecution o# the cri-e co--itted. heovert act -ay consist o# active participation in the actual co--ission o# thecri-e itsel# or it -ay consist o# -oral assistance to his coDconspirators 1y1ein: present at the co--ission o# the cri-e or 1y e9ertin: -oralascendancy over the other coDconspiratorsO. 171 (Em#hasis su##lied, "itationsomitted)4n sum, the trial "ourt erred in failin' to resume the #ro"eedin's after thedesi'nated #eriod. he Court of &##eals erred %hen it held that Se"retary&'ra "ommitted errors of !urisdi"tion des#ite its o%n #ronoun"ement that& S C N is the o%ner of the "o#yri'ht on the ne%s foota'e. Ne%s should edi erentiated from e>#ression of the ne%s, #arti"ularly %hen the issuein$ol$es re road"ast of ne%s foota'e. he Court of &##eals also erroneouslyheld that 'ood faith, as. %ell as la"9 of 9no%led'e of infrin'ement, is adefense a'ainst "riminal #rose"ution for "o#yri'ht and nei'h orin' ri'htsinfrin'ement. 4n its "urrent form, the 4ntelle"tual ro#erty Code is -alu-

prohi1itu- and #res"ri es a stri"t lia ility for "o#yri'ht infrin'ement. Goodfaith, la"9 of 9no%led'e of the "o#yri'ht, or la"9 of intent to infrin'e is not a



defense a'ainst "o#yri'ht infrin'ement. Co#yri'ht, ho%e$er, is su !e"t to therules of fair use and %ill e !ud'ed on a "ase to "ase asis. indin' #ro a le"ause in"ludes a determination of the defendant0s a"ti$e #arti"i#ation,#arti"ularly %hen the "or#orate $eil is #ier"ed in "ases in$ol$in' a"or#oration0s "riminal lia ility."rala%red

H R 8!R , the etition is #artially GRANT D. he =e#artment of usti"eResolution dated une /, +1+ orderin' the lin' of the 4nformation ishere y R INSTAT D as to res#ondents Gra"e =ela eTa Reyes and ohn

li$er . 2analastas. ran"h /3 of the Re'ional rial Court of Que-on City isdire"ted to "ontinue %ith the #ro"eedin's in Criminal Case No. Q +* 131L33.

S! !RD R D. "hanro les$irtualla%li rary

Carpio, Chairperson, Brion, 6el Castillo, and Mendo>a, JJ., "on"ur.

[G.R. No. 1*70*3. /%" 21, 2005]

NBI MICR!S!8T C!R !RATI!N 9!TUS D 9! M NTC!R ., petitioners, vs . UDY C. H ANG, B NIT! H Y !NN

. CHUA B 9TR!N C!M UT R HI9I IN S INC., !NATHAN .CHUA, MI9Y . CHUA, B NIT! T. SANCH ?, NANCY I. 9ASC!,A98!NS! CHUA, A9B RT! CHUA, S! HIA !NG, D ANNACHUA TAI AN MACHIN RY DIS 9AY TRAD C NT R, INC., a%&TH S CR TARY !8 USTIC , respondents .

D C I S I ! NCAR I!, J .>

Th" Ca$"

his is a #etition for certiorari ;1< of the Resolutions ; < of the =e#artment of usti"e dismissin' for la"9 of merit and insuJ"ien"y of e$iden"e #etitioner2i"rosoft Cor#orations "om#laint a'ainst res#ondents for "o#yri'htinfrin'ement and unfair "om#etition.

Th" 8ac'$







etitioner 2i"rosoft Cor#oration (2i"rosoft), a =ela%are, Knited States"or#oration, o%ns the "o#yri'ht and trademar9 to se$eral "om#utersoft%are. ;3< Res#ondents enito Peh and I$onne Peh are the

resident@2ana'in' =ire"tor and General 2ana'er, res#e"ti$ely, of res#ondent eltron Com#uter hili##ines, 4n". ( eltron), a domesti"

"or#oration. Res#ondents onathan P. Chua, Emily P. Chua, enito .San"he-, and Nan"y 4. Delas"o are eltrons =ire"tors. n the other hand,res#ondents &lfonso Chua, &l erto Chua, udy P. Chua ?%an', So#hia n',and =eanna Chua are the =ire"tors of res#ondent ai%an 2a"hinery =is#layO rade Center, 4n". ( 2 C), also a domesti" "or#oration. ;*<

4n 2ay 1//3, 2i"rosoft and eltron entered into a i"ensin' &'reement(&'reement). Knder Se"tion (a) of the &'reement, as amended in anuary1//*, 2i"rosoft authori-ed eltron, for a fee, to:

(i) >>> re#rodu"e and install no more than one (1) "o#y of ;2i"rosoft<soft%are on ea"h Customer System hard dis9 or Read nly 2emory (R 2)A;and<

(ii) >>> distri ute dire"tly or indire"tly and li"ense "o#ies of the rodu"t(re#rodu"ed as #er Se"tion (a)(i) and@or a"Buired from &uthori-ed Re#li"atoror &uthori-ed =istri utor) in o !e"t "ode form to end users;.< >>>> ;L<

he &'reement also authori-ed 2i"rosoft and eltron to terminate the"ontra"t if the other fails to "om#ly %ith any of the &'reements #ro$isions.2i"rosoft terminated the &'reement e e"ti$e une 1//L for eltrons non#ayment of royalties. ;6<

&fter%ards, 2i"rosoft learned that res#ondents %ere ille'ally "o#yin' andsellin' 2i"rosoft soft%are. ConseBuently, 2i"rosoft, throu'h its hili##inea'ent, ;7< hired the ser$i"es of in9erton Consultin' Ser$i"es ( CS), a #ri$atein$esti'ati$e rm. 2i"rosoft also sou'ht the assistan"e of the National

ureau of 4n$esti'ation (N 4). n 1+ No$em er 1//L, CS em#loyee ohnenedi" ;8< Sa"ri- (Sa"ri-) and N 4 a'ent =ominador Samiano, r. (Samiano),

#osin' as re#resentati$es of a "om#uter sho#, ;/< ou'ht "om#uter hard%are("entral #ro"essin' unit (C K) and "om#uter monitor) and soft%are (1"om#uter dis9s (C=s) in read only memory (R 2) format) from res#ondents.

he C K "ontained #re installed ;1+< 2i"rosoft Findo%s 3.1 and 2S = Ssoft%are. he 1 C= R 2s, en"ased in #lasti" "ontainers %ith 2i"rosoft#a"9a'in', also "ontained 2i"rosoft soft%are. ;11< &t least t%o of the C= R 2s%ere installers, so "alled e"ause they "ontain se$eral soft%are (2i"rosoftonly or oth 2i"rosoft and non 2i"rosoft). ;1 < Sa"ri- and Samiano %ere not'i$en the 2i"rosoft end user li"ense a'reements, users manuals, re'istration"ards or "erti "ates of authenti"ity for the arti"les they #ur"hased. here"ei#t issued to Sa"ri- and Samiano for the C K and monitor ore theheadin' .2. .C. ( ?4 S.) 4NC. E R N C 2 K ER. ;13< he re"ei#t for the 1

























C= R 2s did not indi"ate its sour"e althou'h the name Gerlie a##ears elo%the entry deli$ered y. ;1*<

n 17 No$em er 1//L, 2i"rosoft a##lied for sear"h %arrants a'ainstres#ondents in the Re'ional rial Court, ran"h 3, 2anila (R C). ;1L< he R C'ranted 2i"rosofts a##li"ation and issued t%o sear"h %arrants (Sear"hFarrant Nos. /L 68* and /L 68L). ;16< Ksin' Sear"h Farrant Nos. /L 68* and/L 68L, the N 4 sear"hed the #remises of eltron and 2 C and sei-edse$eral "om#uter related hard%are, soft%are, a""essories, and#ara#hernalia. &mon' these %ere 2, 31 #"c"$ o CD+R!M$ "ontainin'2i"rosoft soft%are. ;17<

ased on the arti"les o tained from res#ondents, 2i"rosoft and a "ertainotus =e$elo#ment Cor#oration ( otus Cor#oration) "har'ed res#ondentsefore the =e#artment of usti"e (= ) %ith "o#yri'ht infrin'ement under

Se"tion L(&) in relation to Se"tion / of residential =e"ree No. */, asamended, ( = */) ;18< and %ith unfair "om#etition under &rti"le 18/(1) ;1/< of

the Re$ised enal Code. 4n its Com#laint (4.S. No. /6 1/3), %hi"h the N 4indorsed, 2i"rosoft alle'ed that res#ondents ille'ally "o#ied and sold2i"rosoft soft%are. ; +<

4n their !oint "ounter aJda$it, res#ondents I$onne Peh (res#ondent Peh)and Emily P. Chua (res#ondent Chua) denied the "har'es a'ainstres#ondents. Res#ondents Peh and Chua alle'ed that: (1) 2i"rosofts realintention in lin' the "om#laint under 4.S. No. /6 1/3 %as to #ressure eltronto #ay its alle'ed un#aid royalties, thus 2i"rosoft should ha$e led a"olle"tion suit instead of a "riminal "om#laintA ( ) 2 C ou'ht the"on s"ated L/ o>es of 2S = S C=s from a 2i"rosoft dealer in Sin'a#ore(R.R. =onnelly)A (3) res#ondents are not the sour"e of the 2i"rosoft Findo%s3.1 soft%are #re installed in the C K ou'ht y Sa"ri- and Samiano, ut onlyof the 2S = S soft%areA (*) 2i"rosofts alle'ed #roof of #ur"hase (re"ei#t) forthe 1 C= R 2s is in"on"lusi$e e"ause the re"ei#t does not indi"ate itssour"eA and (L) res#ondents enito Peh, onathan P. Chua, &lfonso Chua,&l erto Chua, udy P. Chua ?%an', So#hia n', and =eanna Chua aresto"9holders of eltron and 2 C in name only and thus "annot e held"riminally lia le. ; 1<

he other res#ondents did not le "ounter aJda$its.

2ean%hile, res#ondents mo$ed to Buash Sear"h Farrant Nos. /L 68*

and /L 68L. he R C #artially 'ranted their motion in its rder of 16 &#ril1//6. 2i"rosoft sou'ht re"onsideration ut the R C denied 2i"rosofts motionin its rder of 1/ uly 1//6. 2i"rosoft a##ealed to the Court of &##eals in C&G.R. CD No. L*6++. 4n its =e"ision of / No$em er ++1, the Court of &##eals 'ranted 2i"rosofts a##eal and set aside the R C rders of 16 &#ril1//6 and 1/ uly 1//6. he Court of &##eals =e"ision e"ame nal on 7=e"em er ++1.



















Th" D! R"$o4/'#o%$

4n the Resolution of 6 "to er 1///, = State rose"utor o"elyn &. n'(State rose"utor n') re"ommended the dismissal of 2i"rosofts "om#laintfor la"9 of merit and insuJ"ien"y of e$iden"e. State rose"utor n' alsore"ommended the dismissal of otus Cor#orations "om#laint for la"9 of interest to #rose"ute and for insuJ"ien"y of e$iden"e. &ssistant Chief State

rose"utor ualhati R. uenafe (&ssistant Chief State rose"utor uenafe)a##ro$ed State rose"utor n's re"ommendations. ; < he 6 "to er 1///Resolution reads in #art:

; <%o ( ) issues ha$e to e resol$ed in this "ase, namely:

a) Fhether or not eltron Com#uter and@or its sto"9holders should eheld lia le for the o enses "har'ed.

) Fhether or not #rima fa"ie "ase e>ist;s< a'ainst ai%an 2a"hinery=is#lay and rade Center, 4n". ( 2 C) for $iolation of the o ense"har'ed.

Com#lainant had alle'ed that from the time the li"ense a'reement %asterminated, res#ondent@s is@are no lon'er authori-ed to "o#y@distri ute@sell2i"rosoft #rodu"ts. ?o%e$er, res#ondent@s a$erred that the "ase is "i$il innature, not "riminal, "onsiderin' that the "ase stemmed only out of thedesire of "om#lainant to "olle"t from them the amount of KSZ13L,1 1.3and that the "ontra"t entered into y the #arties "annot e unilaterallyterminated.

4n the order of ?onora le Filliam ayhon dated uly 1/, 1//6 ;denyin're"onsideration to the rder #artially Buashin' the sear"h %arrants<, heo ser$ed the follo%in':

4t is further ar'ued y "ounsel for res#ondent that the a"t ta9en y #ri$ate"om#lainant is to s#ite re$en'e a'ainst the res#ondent eltron for the latterfailed to #ay the alle'ed monetary o li'ation in the amount ofKSZ13L,1 1.3 . hat res#ondent has some monetary o li'ation to"om#lainant %hi"h is not denied y the "om#lainant.

;<4t a##ears therefore that #rior to the issuan"e of the su !e"t sear"h%arrants, "om#lainant had some usiness transa"tions %ith the res#ondent; eltron< alon' the same line of #rodu"ts. Com#lainant failed to re$eal thetrue "ir"umstan"es e>istin' et%een the t%o of them as it no% a##ears,indeed the sear"h %arrant;s< >>> ;are< ein' used as a le$era'e to se"ure"olle"tion of the money o li'ation %hi"h the Court "annot allo%.





rom said order, it "an e 'leaned that the ;R C< >>>, had admitted that thesear"h %arrants a##lied for y "om#lainant %ere merely used as a le$era'efor the "olle"tion of the alle'ed monetary o li'ation of the res#ondent@s.

rom said order, it "an e surmise (si") that the o li'ations et%een the

#arties is "i$il in nature not "riminal.2oreo$er, "om#lainant had time and a'ain har#ed that res#ondent@s is@arenot authori-ed to sell@"o#y@distri ute 2i"rosoft #rodu"ts at the time of thee>e"ution of the sear"h %arrants. Still, this oJ"e has no #o%er to #ass u#onsaid issue for one has then to inter#ret the #ro$isions of the "ontra"t enteredinto y the #arties, %hi"h Buestion, should e raised in a #ro#er "i$il#ro"eedin'.

&""ordin'ly, a sen;t< a resolution from the #ro#er "ourt of (si") %hether ornot the "ontra"t is still indin' et%een the #arties at the time of the

e>e"ution of the sear"h %arrants, this oJ"e "annot #ass u#on the issue of%hether res#ondent@s is or are lia le for the o ense "har'ed.

&s to the se"ond issue, %e nd for the res#ondent@s. 2 C had #ro$idedsuJ"ient e$iden"e su"h as #ro forma in$oi"e from R.R. =onnelleyA =e t&d$i"e of the an9 of Commer"eA J"ial Re"ei#ts from the ureau ofCustomsA and 4m#ort Entry =e"laration of the ureau of Customs to #ro$ethat indeed the 2i"rosoft soft%are in their #ossession %ere ou'ht fromSin'a#ore.

hus, res#ondent@s in this "ase has@ha$e no intent to defraud the #u li", as

#ro$ided under &rti"le 18/ of the Re$ised enal Code, for they ou'ht said2i"rosoft 2S = S 6.+ from an alle'ed li"ensee of 2i"rosoft in Sin'a#ore, %ithall the ne"essary #a#ers. 4n their o#inion, %hat they ha$e are 'enuine2i"rosoft soft%are, therefore no unfair "om#etition e>ist.

2oreo$er, $iolation of .=. */ does not e>ist, for res#ondent@s %as@%ere notthe manufa"turers of the 2i"rosoft soft%are sei-ed and %ere sellin' their#rodu"ts as 'enuine 2i"rosoft soft%are, "onsiderin' that they ou'ht it froma 2i"rosoft li"ensee.

Com#lainant, on the other hand, "onsiderin' that it has the urden of#ro$in' that the res#ondent@s is@are lia le for the o ense "har'ed, has not#resented any e$iden"e that the items sei-ed namely the L/ o>es of 2S= S 6.+ soft%are are "ounterfeit.

he "erti "ation issued on =e"em er 1 , 1//L y Christo#her &ustin,Cor#orate &ttorney of the "om#lainant, does not dis"lose this fa"t. or theterm used y 2r. &ustin %as that the items sei-ed %ere unauthori-ed.



he Buestion no%, is %hether the #rodu"ts %ere unauthori-ed e"ause 2 Chas no li"ense to sell 2i"rosoft #rodu"ts, or is it unauthori-ed e"ause R.R.=onnelley has no authority to sell said #rodu"ts here in the hili##ines.

Still, to determine the "ul#a ility of the res#ondents, "om#lainant should

#resent e$iden"e that %hat is in the #ossession of the res#ondent@s is@are"ounterfeit 2i"rosoft #rodu"ts.

his it failed to do. ; 3<

2i"rosoft sou'ht re"onsideration and #rayed for an o"ular ins#e"tion of the arti"les sei-ed from res#ondents. ?o%e$er, in the Resolution of 3=e"em er 1///, &ssistant Chief State rose"utor uenafe, u#on State

rose"utor n's re"ommendation, denied 2i"rosofts motion. ; *<

2i"rosoft a##ealed to the J"e of the = Se"retary. 4n the Resolution of 3 &u'ust +++, = Knderse"retary Re'is D. uno dismissed 2i"rosoftsa##eal. ; L< 2i"rosoft sou'ht re"onsideration ut its motion %as denied in theResolution of =e"em er +++. ; 6<

?en"e, this #etition. 2i"rosoft "ontends that:

4. ?E = ERRE= 4N RK 4NG ?& ?E 4& 4 4 I RES N=EN SF&S N I C4D4 4N N& KRE I D4R KE ?E 4CENSE&GREE2EN .

44. ?E = 24S& REC4& E= ?E &C ?& RES N=EN S FEREENG&GE= 4N ?E 4 EG& 42 R & 4 N, S& E &N= =4S R4 K 4 N

C KN ER E4 S F&RE &S ED4=ENCE= I ?E 4 E2S

KRC?&SE= =KR4NG ?E ES KI &N= ?E 4 E2S SE4ME= R 2RES N=EN S RE24SES.

444. ?E = 24S& REC4& E= ?E &F N C IR4G?4N R4NGE2EN &N= KN &4R C 2 E 4 4 N.

4D. N I F K ?E N4NE RES N=EN S ?ERE= 4 EC KN ER & 4=&D4 SA ?ENCE, ?E C?&RGES &G&4NS SEDEN;RES N=EN S< RE2&4N KNC N R DER E=. ; 7<

4n its Comment, led y the Soli"itor General, the = maintains that itdid not "ommit 'ra$e a use of dis"retion in dismissin' 2i"rosofts "om#laint.; 8<

or their #art, res#ondents alle'e in their Comment that 2i"rosoft is'uilty of forum sho##in' e"ause its #etition in C& G.R. CD No. L*6++ %as

led ahead of, and has a "ommon interest %ith, this #etition. n the merits,res#ondents reiterate their "laims in their motion to Buash Sear"h FarrantNos. /L 68* and /L 68L that the arti"les sei-ed from them %ere eithero%ned y others, #ur"hased from le'itimate sour"es, or not #rodu"ed y2i"rosoft. Res#ondents also insist that the &'reement entitled eltron to















"o#y and re#li"ate or re#rodu"e 2i"rosoft #rodu"ts. n the "on s"ated ,831C= R 2s, res#ondents alle'e that a "ertain "or#oration ; /< left the C= R 2s%ith them for safe9ee#in'. astly, res#ondents "laim that there is no #roof that the C K Sa"ri- and Samiano ou'ht from them "ontained #re installed2i"rosoft soft%are e"ause the re"ei#t for the C K does not indi"ate

;s<oft%are hard dis9. ;3+<

4n its Re#ly, 2i"rosoft "ounters that it is not lia le for forum sho##in'e"ause its #etition in C& G.R. CD No. L*6++ in$ol$ed the rders of the R C

#artially Buashin' Sear"h Farrant Nos. /L 68* and /L 68L %hile this #etition"on"erns the = Resolutions dismissin' its "om#laint a'ainst res#ondentsfor "o#yri'ht infrin'ement and unfair "om#etition. n the merits, 2i"rosoftmaintains that res#ondents should e indi"ted for "o#yri'ht infrin'ementand unfair "om#etition. ;31<

Th" I$$/"$

he #etition raises the follo%in' issues:

(1) Fhether 2i"rosoft en'a'ed in forum sho##in'A and

( ) Fhether the = a"ted %ith 'ra$e a use of dis"retion in not ndin'#ro a le "ause to "har'e res#ondents %ith "o#yri'ht infrin'ementand unfair "om#etition.

Th" R/4#% o 'h" Co/r'

he #etition has merit.

Microsoft did not Engage in Forum-Shopping

orum sho##in' ta9es #la"e %hen a liti'ant les multi#le suits in$ol$in'the same #arties, either simultaneously or su""essi$ely, to se"ure afa$ora le !ud'ment. ;3 < hus, it e>ists %here the elements of litis

pendentia are #resent, namely: (a) identity of #arties, or at least su"h #arties%ho re#resent the same interests in oth a"tionsA ( ) identity of ri'hts

asserted and relief #rayed for, the relief ein' founded on the same fa"tsAand (") the identity %ith res#e"t to the t%o #re"edin' #arti"ulars in the t%o"ases is su"h that any !ud'ment that may e rendered in the #endin' "ase,re'ardless of %hi"h #arty is su""essful, %ould amount to res =udicata in theother "ase. ;33< orum sho##in' is an a"t of mal#ra"ti"e e"ause it a uses"ourt #ro"esses. ;3*< o "he"9 this #erni"ious #ra"ti"e, Se"tion L, Rule 7 of the1//7 Rules of Ci$il ro"edure reBuires the #rin"i#al #arty in an initiatory#leadin' to su mit a "erti "ation a'ainst forum sho##in'. ;3L< ailure to

















"om#ly %ith this reBuirement is a "ause for the dismissal of the "ase and, in"ase of %illful forum sho##in', for the im#osition of administrati$e san"tions.

?ere, 2i"rosoft "orre"tly "ontends that it is not lia le for forum sho##in'.Fhat 2i"rosoft a##ealed in C& G.R. CD No. L*6++ %ere the R C rders#artially Buashin' Sear"h Farrant Nos. /L 68* and /L 68L. 4n the #resent"ase, 2i"rosoft is a##ealin' from the = Resolutions dismissin' its"om#laint a'ainst res#ondents for "o#yri'ht infrin'ement and unfair"om#etition. hus, althou'h the #arties in C& G.R. CD No. L*6++ and this#etition are identi"al, the ri'hts asserted and the reliefs #rayed for are notsu"h that the !ud'ment in C& G.R. CD No. L*6++ does not amount to res

=udicata in the #resent "ase. his renders forum sho##in' im#ossi le here.

The DOJ Acted ith !rave A"use of Discretionin not Finding #ro"a"$e %ause to %harge &espondents ith

%op'right (nfringement and )nfair %ompetition

Generally, this Court is loath to interfere in the #rose"utors dis"retion indeterminin' #ro a le "ause ;36< unless su"h dis"retion is sho%n to ha$e eena used. ;37< his "ase falls under the e>"e#tion.

Knli9e the hi'her Buantum of #roof eyond reasona le dou t reBuired tose"ure a "on$i"tion, it is the lo%er standard of #ro a le "ause %hi"h isa##lied durin' the #reliminary in$esti'ation to determine %hether thea""used should e held for trial. his standard is met if the fa"ts and"ir"umstan"es in"ite a reasona le elief that the a"t or omission "om#lainedof "onstitutes the o ense "har'ed. &s %e e>#lained in #i$api$ v.Sandigan"a'an :;38<

he term ;#ro a le "ause< does not mean a"tual and #ositi$e "ause nor doesit im#ort a solute "ertainty. 4t is merely ased on o#inion and reasona le

elief. hus, a ndin' of #ro a le "ause does not reBuire an inBuiry into%hether there is suJ"ient e$iden"e to #ro"ure a "on$i"tion. 4t is enou'h thatit is elie$ed that the a"t or omission "om#lained of "onstitutes the o ense"har'ed. re"isely, there is a trial for the re"e#tion of e$iden"e of the#rose"ution in su##ort of the "har'e.

#D *+ and Artic$e + /

Se"tion L;3/<

of = */ (Se"tion L) enumerates the ri'hts $ested e>"lusi$elyon the "o#yri'ht o%ner. Contrary to the = s rulin', the 'ra$amen of "o#yri'ht infrin'ement is not merely the unauthori-ed manufa"turin' of intelle"tual %or9s ut rather the unauthori-ed #erforman"e of any of the a"ts"o$ered y Se"tion L. ?en"e, any #erson %ho #erforms any of the a"ts underSe"tion L %ithout o tainin' the "o#yri'ht o%ners #rior "onsent rendershimself "i$illy ;*+< and "riminally ;*1< lia le for "o#yri'ht infrin'ement. Fe heldin %o$um"ia #ictures, (nc. v. %ourt of Appea$s :;* <

















4nfrin'ement of a "o#yri'ht is a tres#ass on a #ri$ate domain o%ned ando""u#ied y the o%ner of the "o#yri'ht, and, therefore, #rote"ted y la%,and infrin'ement of "o#yri'ht, or #ira"y, %hi"h is a synonymous term in this"onne"tion, "onsists in the doin' y any #erson, %ithout the "onsent of theo%ner of the "o#yri'ht, of anythin' the sole ri'ht to do %hi"h is "onferred y

statute on the o%ner of the "o#yri'ht. (Em#hasis su##lied)Si'ni "antly, under Se"tion L(&), a "o#yri'ht o%ner is $ested %ith the

e>"lusi$e ri'ht to "o#y, distri ute, multi#ly, ;and< sell his intelle"tual %or9s.

n the other hand, the elements of unfair "om#etition under &rti"le18/(1) ;*3< of the Re$ised enal Code are:

(a) hat the o ender 'i$es his 'oods the 'eneral a##earan"e of the'oods of another manufa"turer or dealerA

( ) hat the 'eneral a##earan"e is sho%n in the (1) 'oodsthemsel$es, or in the ( ) %ra##in' of their #a"9a'es, or in the (3)de$i"e or %ords therein, or in (*) any other feature of theira##earan"e;A<

(") hat the o ender o ers to sell or sells those 'oods or 'i$es other#ersons a "han"e or o##ortunity to do the same %ith a li9e#ur#ose;A and<

(d) hat there is a"tual intent to de"ei$e the #u li" or defraud a"om#etitor. ;**<

he element of intent to de"ei$e may e inferred from the similarity of the 'oods or their a##earan"e. ;*L<

On the Su0cienc' of Evidence toSupport a Finding of #ro"a"$e %ause

Against &espondents

4n its #leadin's led %ith the = , 2i"rosoft in$o9ed three "lusters of e$iden"e to su##ort its "om#laint a'ainst res#ondents, namely: (1) the 1C= R 2s "ontainin' 2i"rosoft soft%are Sa"ri- and Samiano ou'ht fromres#ondentsA ( ) the C K %ith #re installed 2i"rosoft soft%are Sa"ri- andSamiano also #ur"hased from res#ondentsA and (3) the ,831 C= R 2s"ontainin' 2i"rosoft soft%are sei-ed from res#ondents. ;*6< he = , on the

one hand, refused to #ass u#on the rele$an"e of these #ie"es of e$iden"ee"ause: (1) the o li'ations et%een the #arties is "i$il and not "riminal"onsiderin' that 2i"rosoft merely sou'ht the issuan"e of Sear"h FarrantNos. /L 68* and /L 68L to #ressure eltron to #ay its o li'ation under the&'reement, and ( ) the $alidity of 2i"rosofts termination of the &'reementmust rst e resol$ed y the #ro#er "ourt. n the other hand, the = ruledthat 2i"rosoft failed to #resent e$iden"e #ro$in' that %hat %ere o tainedfrom res#ondents %ere "ounterfeit 2i"rosoft #rodu"ts.











his is 'ra$e a use of dis"retion. ;*7<

$irst . ein' the "o#yri'ht and trademar9 o%ner of 2i"rosoft soft%are,2i"rosoft a"ted %ell %ithin its ri'hts in lin' the "om#laint under 4.S. No. /61/3 ased on the in"riminatin' e$iden"e o tained from res#ondents. ?en"e,it %as hi'hly irre'ular for the = to hold, ased on the R C rder of 1/ uly1//6, that 2i"rosoft sou'ht the issuan"e of Sear"h Farrant Nos. /L 68* and/L 68L, and y inferen"e, the lin' of the "om#laint under 4.S. No. /6 1/3,merely to #ressure eltron to #ay its o$erdue royalties to 2i"rosoft.Si'ni "antly, in its =e"ision in C& G.R. CD No. L*6++ dated / No$em er

++1, the Court of &##eals set aside the R C rder of 1/ uly 1//6.Res#ondents no lon'er "ontested that rulin' %hi"h e"ame nal on 7=e"em er ++1.

Second . here is no asis for the = to rule that 2i"rosoft must a%ait a#rior resolution from the #ro#er "ourt of (si") %hether or not the ;&'reement<is still indin' et%een the #arties. eltron has not led any suit to Buestion

2i"rosofts termination of the &'reement. 2i"rosoft "an neither e e>#e"tednor "om#elled to %ait until eltron de"ides to sue efore 2i"rosoft "an see9remedies for $iolation of its intelle"tual #ro#erty ri'hts.

urthermore, some of the "ounterfeit C= R 2s ou'ht from res#ondents%ere installer C= R 2s "ontainin' 2i"rosoft soft%are only or oth 2i"rosoftand non 2i"rosoft soft%are. hese arti"les are "ounterfeit per se e"ause2i"rosoft does not (and "ould not ha$e authori-ed anyone to) #rodu"e su"hC= R 2s. he "o#yin' of the 'enuine 2i"rosoft soft%are to #rodu"e thesefa9e C= R 2s and their distri ution are ille'al e$en if the "o#ier ordistri utor is a 2i"rosoft li"ensee. &s far as these installer C= R 2s are"on"erned, the &'reement (and the alle'ed Buestion on the $alidity of itstermination) is immaterial to the determination of res#ondents lia ility for"o#yri'ht infrin'ement and unfair "om#etition.

astly, Se"tion 1+( ) ;*8< of the &'reement #ro$ides that 2i"rosofts ri'htsand remedies under the "ontra"t are not >>> e>"lusi$e and are in addition toany other ri'hts and remedies #ro$ided y la% or ;the< &'reement. hus,e$en if the &'reement still su sists, 2i"rosoft is not #re"luded from see9in'remedies under = */ and &rti"le 18/(1) of the Re$ised enal Code to$indi"ate its ri'hts.

hird . he Court nds that the 1 C= R 2s (installer and non installer)

and the C K %ith #re installed 2i"rosoft soft%are Sa"ri- and Samiano ou'htfrom res#ondents and the ,831 2i"rosoft C= R 2s sei-ed from res#ondentssuJ"e to su##ort a ndin' of #ro a le "ause to indi"t res#ondents for"o#yri'ht infrin'ement under Se"tion L(&) in relation to Se"tion / of = */for unauthori-ed "o#yin' and sellin' of #rote"ted intelle"tual %or9s. heinstaller C= R 2s %ith 2i"rosoft soft%are, to re#eat, are "ounterfeit per se .

n the other hand, the ille'ality of the non installer C= R 2s #ur"hasedfrom res#ondents and of the 2i"rosoft soft%are #re installed in the C K is







sho%n y the a sen"e of the standard features a""om#anyin' authenti"2i"rosoft #rodu"ts, namely, the 2i"rosoft end user li"ense a'reements, usersmanuals, re'istration "ards or "erti "ates of authenti"ity.

n the ,831 2i"rosoft C= R 2s ;*/< sei-ed from res#ondents, res#ondenteltron, the only res#ondent %ho %as #arty to the &'reement, "ould not

ha$e re#rodu"ed them under the &'reement as the Soli"itor General ;L+< andres#ondents "ontend. eltrons ri'hts ;L1< under the &'reement %ere limited to:

(1) the re#rodu";tion< and install;ation of< no more than o%" co of ;2i"rosoft< soft%are on ea"h Customer System hard dis9 or Read nly2emory (R 2)A and

( ) the distri ut;ion< >>> and li"ens;in' of< "o#ies of the ;2i"rosoft<rodu"t [a$ r" ro&/c"& a)o<"] a%& or ac /#r"& ro( A/'hor#E"&

R" 4#ca'or or A/'hor#E"& D#$'r#)/'or; #% o)F"c' co&" or( 'o "%&/$"r$ .

he &'reement de nes an authori-ed re#li"ator as a third #arty a##ro$edy ;2i"rosoft< %hi"h may re#rodu"e and manufa"ture ;2i"rosoft< rodu"t;s<for ; eltron< >>>. ;L < &n authori-ed distri utor, on the other hand, is a third#arty a##ro$ed y ;2i"rosoft< from %hi"h ; eltron< may #ur"hase2E= ;L3< rodu"t. ;L*< ein' a mere re#rodu"er@installer of one 2i"rosoftsoft%are "o#y on ea"h "ustomers hard dis9 or R 2, eltron "ould only ha$ea"Buired the hundreds of 2i"rosoft C= R 2s found in res#ondents#ossession from 2i"rosoft distri utors or re#li"ators.

?o%e$er, res#ondents ma9es no su"h "laim. Fhat res#ondents "ontendis that these C= R 2s %ere left to them for safe9ee#in'. ut neither is this"laim tena le for la"9 of su stantiation. 4ndeed, res#ondents Peh and Chua,the only res#ondents %ho led "ounter aJda$its, did not ma9e this "laim inthe = . hese "ir"umstan"es 'i$e rise to the reasona le inferen"e thatres#ondents mass #rodu"ed the C= R 2s in Buestion %ithout se"urin'2i"rosofts #rior authori-ation.

he "ounterfeit non installer C= R 2s Sa"ri- and Samiano ou'ht fromres#ondents also suJ"e to su##ort a ndin' of #ro a le "ause to indi"tres#ondents for unfair "om#etition under &rti"le 18/(1) of the Re$ised enalCode for #assin' o 2i"rosoft #rodu"ts. rom the #i"tures of the C= R 2s#a"9a'in', ;LL< one "annot distin'uish them from the #a"9a'in' of C= R 2s"ontainin' 'enuine 2i"rosoft soft%are. Su"h re#li"ation, "ou#led %ith thesimilarity of "ontent of these fa9e C= R 2s and the C= R 2s %ith 'enuine2i"rosoft soft%are, im#lies intent to de"ei$e.

Res#ondents "ontention that the 1 C= R 2s Sa"ri- and Samiano#ur"hased "annot e tra"ed to them e"ause the re"ei#t for these arti"lesdoes not indi"ate its sour"e is una$ailin'. he re"ei#t in Buestion should eta9en to'ether %ith 2i"rosofts "laim that Sa"ri- and Samiano ou'ht the C=R 2s from res#ondents. ;L6< o'ether, these "onsiderations #oint to



















res#ondents as the $endor of the "ounterfeit C= R 2s. Res#ondents do not'i$e any reason %hy the Court should not 'i$e "reden"e to 2i"rosofts "laim.

or the same reason, the fa"t that the re"ei#t for the C K does not indi"ate;s<oft%are hard dis9 does not mean that the C K had no #re installed2i" ft ft% R # d t P h d Ch d it i th i " t

ipl orig cases (1)

Documents