ABS-CBN Corp., petitioner vs. GMA Pres. and CEO Atty.

Felipe Gozon, GMA

Vice
President and COO Gilberto Duavit Jr., Marissa L. Flores, Jessica A. Soho, GMA
Head of News Operations Grace Dela Peña-Reyes, GMA News Program
Manager
John Oliver Manalastas, et. al., respondents.

G.R. No. 195956, 1 March 2015

Ponente: Justice Marvic F. Leonen

FACTS

On August 13, 2004, petitioner ABS-CBN filed a criminal complaint against

respondent GMA for (alleged) act of copyright infringement under Sections
177 and
211 of the Intellectual Property Code (RA 8293, as amended), because
the
respondent aired footage of the arrival and homecoming of OFW Angelo dela
Cruz at NAIA from Iraq without the petitioner's consent. ABS-CBN stated that
it has an agreement with Reuter's that the petition will contribute news and
content that it owns and makes to Reuters in exchange of the latter's news
and video material, and Reuters will ensure that ABS-CBN's materials cannot
be aired in the country.
The respondent was a subscriber of Reuter's and CNN live feeds. After it
received the live feed of Angelo Dela Cruz's arrival and homecoming from
Reuter's, it immediately aired the video from that news feed. The respondent
alleged that its news staff was not aware that there was (a news embargo)
agreement between ABS-CBN and Reuters. Respondent alleged that it was
not also aware that it aired petitioner's footage.
Assistant City Prosecutor Dindo Venturanza issued resolution on 3 December
2004 which found probable cause to indict Dela Peña-Reyes and Manalastas.
The respondents appealed the Prosccutor's resolution before DOJ. DOJ
Secretary Raul M. Gonzalez ruled in favor of respondents in his resolution
dated 1 August 2005 and held that good faith may be raised as a defense in
the case.
Meanwhile, DOJ Acting Secretary Alberto C. Agra issued a resolution on 29
June 2010 which reversed Sec. Gonzalez's resolution and found probable
cause to charge Dela Peña-Reyes, Manalastas, as well as to indict Gozon,
Duavit, Jr., Flores, and Soho for violation of the Intellectual Property Code
(due to copyright infringement).
The Court of Appeals rendered a decision on 9 November 2010, which
granted the Petition for Certiorari to reverse and set aside DOJ Sec. Alberto
Agra's resolution and a prayer for issuance of a temporary restraining order
and/or Writ of Preliminary Injunction.
The appellate court stated that the petitioner has copyright of its news
coverage, but respondents’ act of airing five (5) seconds of the homecoming
footage without notice
/archie.manansala

Archibald Jose T. Manansala

CEU School of Law, A.Y. 20152016

of the “No Access Philippines” restriction of the live Reuter's video feed, was
undeniably attended by good faith and thus, serves to exculpate from
criminal liability under the Intellectual Property Code.

ISSUES

W/N there is probable cause to find respondents to be held liable criminally

for the case of copyright infringement under the Intellectual Property Law
(RA 8293, as amended)?

HELD

The Supreme Court PARTIALLY GRANTED ABS-CBN’s petition and ordered RTC
Q.C. Branch 93 to continue with the criminal proceedings against Grace Dela
Peña-Reyes and John Oliver Manalastas due to copyright infringement.
The other respondents, Atty. Felipe Gozon, Gilberto Duavit Jr., Marissa L.
Flores, and Jessica A. Soho were held not liable for the (criminal) act of
copyright infringement. The Court held that their mere membership in
GMA7's Board of Directors does not mean that they have knowledge,
approval, or participation in the criminal act of copyright infringement., as
there is a need for their direct/active participation in such act. Also, there
was lack of proof that they actively participated or exercised moral
ascendancy over Manalastas and Dela Cruz-Pena.
Contrary to GMA’s contention, the Supreme Court deemed GMA's mere act of
rebroadcast of ABS-CBN’s news footage (arrival and homecoming of OFW
Angelo dela Cruz at NAIA from Iraq last 22 July 2004) for 2 mins and 40
secs.without the latter's authority creates probable cause to find GMA's news
personnel Manalastas and Dela Peña-Reyes criminally liable for violating
provisions of Intellectual
Property Code (Section 216217 of RA 8293, as amended) that imposes strict
liability for copyright infringement, since they have not been diligent in their
functions to prevent that footage from being aired on television. They knew
that there would be consequences in carrying ABS-CBN’s footage in their
broadcast – which is why they allegedly cut the feed from Reuters upon
seeing ABS-CBN’s logo and reporter.
The difference of an act mala in se and mala prohibita was stated in the
present case. Acts mala in se requires presence of criminal intent and the
person's knowledge of the nature of his/her act, while in acts mala prohibita,
presence of criminal intent and the person's knowledge is not necessary. The
Court also stated that Philippine laws on copyright infringement does not
require criminal intent (mens rea) and does not support good faith as a
defense. Thus, the act of infringement and not the intent is the one that
causes the damage.
It held that ABS -CBN's video footage is copyrightable because it is under
“audiovisual works and cinematographic works and works produced by a
process

/archie.manansala

Archibald Jose T. Manansala

CEU School of Law, A.Y. 20152016
analogous to cinematography or any process for making audiovisual
recordings.” It also stated that news or the event itself is not copyrightable.
The Court differentiated idea and expression – idea meant as “a form, the
look or appearance of a thing” while expression is its reality or the “external,
perceptible world of articulate sounds and visible written symbols that others
can understand.” Thus, the Supreme Court stated that “only the expression
of an idea is protected by
copyright, not the idea itself”, citing the US Supreme Court's decision in
Baker vs
Selden (101 U.S. 99). In the present case, expression applies to the event
captured and presented in a specific medium via cinematography or
processes analogous to it.
The Court also gave the four-fold test under the Fair Use Doctrine (stated in
section 185 of RA 8293 or the Intellectual Property Code, as amended) to
determine fair use:
a. The purpose and character of the use, including whether such use is
of a commercial nature or is for non-profit educational purposes;

b. The nature of the copyrighted work;

c. The amount and substantiality of the portion used in relation
to the copyrighted work as a whole; and
d. The effect of the use upon the potential market for or value
of the copyrighted work.
Fair use, which is an exception to copyright owner’s monopoly of the work's
usage, was defined by the Supreme Court as privilege to use the copyrighted
material in a reasonable manner without the copyright owner's consent or by
copying the material's theme or idea rather than its expression.
It also said that determination of whether the Angelo dela Cruz footage is
subject to fair use is better left to the trial court where the proceedings are
currently pending.

/archie.manansala

Archibald Jose T. Manansala

CEU School of Law, A.Y. 20152016