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TANADA VS ANGARA treatment” clauses scattered in parts of WTO

Agreement
FACTS:  This is in view of the most-favored nation clause
(MFN) of the TRIMS (trade-related investment
 To recover from the devastation brought by World
measures), TRIPS (Trade Related aspects of
War 2, three(3) establishments were discussed at intellectual property rights), Trade in Services, and
Dumbarton Oaks and Bretton Woods and were par. 4 of Article III of GATT 1994.
eventually created.  “shall be accorded treatment no less favorable than
that accorded to like products of national origin”
 The first was the World Bank (WB) which was to
 It is petitioners' position that the foregoing "national
address the rehabilitation and reconstruction of war-
treatment" and "parity provisions" of the WTO
ravaged and later developing countries; Agreement "place nationals and products of member
countries on the same footing as Filipinos and local
 The second, the International Monetary Fund (IMF)
products," in contravention of the "Filipino First"
which was to deal with currency problems; and
policy of the Constitution. They allegedly render
 The third, the International Trade Organization meaningless the phrase "effectively controlled by
Filipinos."
(ITO), which was to foster order and predictability in
 Respondents’ arguments: On the other hand,
world trade and to minimize unilateral protectionist
respondents through the Solicitor General counter (1)
policies that invite challenge, even retaliation, from
that such Charter provisions are not self-executing
other states. and merely set out general policies; (2) that these
nationalistic portions of the Constitution invoked by
 However, the ITO did not materialized. Instead, there
petitioners should not be read in isolation but should
was the general agreement on trades and tariffs
be related to other relevant provisions of Art. XII,
(GATT). particularly Secs. 1 and 13 thereof; (3) that read
properly, the cited WTO clauses do not conflict with
 Principally the Kennedy Round, the Tokyo Round
Constitution; and (4) that the WTO Agreement
and the Uruguay Round, the world finally gave birth
contains sufficient provisions to protect developing
to that administering body — the World Trade
countries like the Philippines from the harshness of
Organization — with the signing of the "Final Act" in
sudden trade liberalization.
Marrakesh, Morocco and the ratification of the WTO
Agreement by its members.
 The Uruguay Round Final Act, the Agreement ISSUE:
Establishing the Petitioners’ World Trade
Organization, the Ministerial Declarations and Whether, the provisions of the World Trade Organization
Decisions, and the Understanding on Commitments (WTO) and its three annexes contravene section 19 of article 2
in Financial Services are hereby submitted to the and section 10 and 12 of Article 12 of the Constitution
Senate for its concurrence pursuant to Section 21,
Article VII of the Constitution question the validity
of the concurrence of the WTO.
RULING:
 Petitioners’ arguments: Arguing mainly (1) that the
WTO requires the Philippines "to place nationals and  Declaration of principles not self-executing
products of member-countries on the same footing as
Filipinos and local products" and (2) that the WTO
"intrudes, limits and/or impairs" the constitutional These principles in Article II are not intended to be self-
powers of both Congress and the Supreme Court, the executing principles ready for enforcement through the
instant petition before this Court assails the WTO courts. 23They are used by the judiciary as aids or as guides in
Agreement for violating the mandate of the 1987 the exercise of its power of judicial review, and by the
Constitution to "develop a self-reliant and legislature in its enactment of laws. As held in the leading case
independent national economy effectively of Kilosbayan, Incorporated vs. Morato, the principles and
controlled by Filipinos . . . (to) give preference to state policies enumerated in Article II and some sections of
qualified Filipinos (and to) promote the Article XII are not "self-executing provisions, the disregard of
preferential use of Filipino labor, domestic which can give rise to a cause of action in the courts. They do
materials and locally produced goods." not embody judicially enforceable constitutional rights but
 Petitioners aver that these sacred constitutional guidelines for legislation."
principles (Sec. 19 Art. 2, Section 10 and 12 Art. 12)
are desecrated by the following WTO provisions  Economic Nationalism Should Be Read with
quoted in their memorandum: Petitioners argue that Other Constitutional Mandates to Attain
the “letter, spirit and intent” of the Constitution Balanced Development of Economy
mandating “economic nationalism” are violated by
the so-called “parity provisions” and “national On the other hand, Secs. 10 and 12 of Article XII, apart from
merely laying down general principles relating to the national
economy and patrimony, should be read and understood in as of the protection of "Filipino enterprises against unfair
relation to the other sections in said article, especially Secs. 1 foreign competition and trade practices."
and 13 thereof which read:
All told, while the Constitution indeed mandates a bias in
Sec. 1. The goals of the national economy are a more favor of Filipino goods, services, labor and enterprises, at the
equitable distribution of opportunities, income, and same time, it recognizes the need for business exchange with
wealth; a sustained increase in the amount of goods the rest of the world on the bases of equality and reciprocity
and services produced by the nation for the benefit of and limits protection of Filipino enterprises only against
the people; and an expanding productivity as the key foreign competition and trade practices that are unfair.
to raising the quality of life for all especially the
underprivileged.  Constitution Does Not Rule Out Foreign Competition

The State shall promote industrialization and full The WTO reliance on "most favored nation," "national
employment based on sound agricultural treatment," and "trade without discrimination" cannot be
development and agrarian reform, through industries struck down as unconstitutional as in fact they are rules of
that make full and efficient use of human and natural equality and reciprocity that apply to all WTO members.
resources, and which are competitive in both Aside from envisioning a trade policy based on "equality and
domestic and foreign markets. However, the State reciprocity," 37 the fundamental law encourages industries
shall protect Filipino enterprises against unfair that are "competitive in both domestic and foreign markets,"
foreign competition and trade practices. thereby demonstrating a clear policy against a sheltered
domestic trade environment, but one in favor of the gradual
In the pursuit of these goals, all sectors of the development of robust industries that can compete with the
economy and all regions of the country shall be given best in the foreign markets.
optimum opportunity to develop. . . .
 Constitution Designed to Meet
xxx xxx xxx Future Events and Contingencies

Sec. 13. The State shall pursue a trade policy that __________________________________________________
serves the general welfare and utilizes all forms and
arrangements of exchange on the basis of equality Feist Publications vs Rural Telephone Service
and reciprocity.
Facts:
As pointed out by the Solicitor General, Sec. 1 lays down the
basic goals of national economic development, as follows:
 Rural Telephone Service Company is a certified
public utility that provides telephone service to
1. A more equitable distribution of opportunities, income and
several communities in northwest Kansas.
wealth;
 Feist Publications, Inc., is a publishing company that
specializes in area-wide telephone directories.
2. A sustained increase in the amount of goods and services  As the sole provider of telephone service in its
provided by the nation for the benefit of the people; and service area, Rural obtains subscriber information
quite easily. Persons desiring telephone service must
3. An expanding productivity as the key to raising the quality apply to Rural and provide their names and
of life for all especially the underprivileged. addresses; Rural then assigns them a telephone
number. Feist is not a telephone company, let alone
With these goals in context, the Constitution then ordains the one with monopoly status, and therefore lacks
ideals of economic nationalism (1) by expressing preference in independent access to any subscriber information. To
favor of qualified Filipinos "in the grant of rights, privileges obtain white pages listings for its area-wide directory,
and concessions covering the national economy and Feist approached each of the 11 telephone companies
patrimony" 27 and in the use of "Filipino labor, domestic operating in northwest Kansas and offered to pay for
materials and locally-produced goods"; (2) by mandating the the right to use its white pages listings.
State to "adopt measures that help make them competitive; 28  Of the 11 telephone companies, only Rural refused to
and (3) by requiring the State to "develop a self-reliant and license its listings to Feist.
independent national economy effectively controlled by  Unable to license Rural's white pages listings, Feist
Filipinos." 29 In similar language, the Constitution takes into used them without Rural's consent.
account the realities of the outside world as it requires the  Rural sued for copyright infringement in the District
pursuit of "a trade policy that serves the general welfare and Court for the District of Kansas taking the position
utilizes all forms and arrangements of exchange on the basis that Feist, in compiling its own directory, could not
of equality ad reciprocity"; 30 and speaks of industries "which use the information contained in Rural's white pages.
are competitive in both domestic and foreign markets" as well Rural asserted that Feist's employees were obliged to
travel door-to-door or conduct a telephone survey to  On June 28, 1973, petitioner BJPI submitted to the
discover the same information for themselves. National Library an addendum to its certificate of
 Feist responded that such efforts were economically copyright specifying the show's format and style of
impractical and, in any event, unnecessary because presentation.
the information copied was beyond the scope of  On July 14, 1991, while watching television,
copyright protection. petitioner Francisco Joaquin, Jr., president of BJPI,
 Decision of the district court: The District Court saw on RPN Channel 9 an episode of It's a Date,
granted summary judgment to Rural, explaining that which was produced by IXL Productions, Inc. (IXL).
"courts have consistently held that telephone  On July 18, 1991, he wrote a letter to private
directories are copyrightable" and citing a string of respondent Gabriel M. Zosa, president and general
lower court decisions. manager of IXL, informing Zosa that BJPI had a
 Court of Appeals: The Court of Appeals for the copyright to Rhoda and Me and demanding that IXL
Tenth Circuit affirmed "for substantially the reasons discontinue airing It's a Date.
given by the district court."  rivate respondent Zosa sought to register IXL's
copyright to the first episode of It's a Date for which
Issues: it was issued by the National Library a certificate of
copyright August 14, 1991.
Whether, under their laws, the copyright in Rural's directory  Upon complaint of petitioners, an information for
protects the names, towns, and telephone numbers copied by violation of P.D. No. 49 was filed against private
Feist. respondent Zosa at the Regional Trial Court of
Quezon City. However, private respondent Zosa
sought a review of the resolution of the Assistant City
Ruling:
Prosecutor before the Department of Justice.
 Respondent Secretary of Justice Franklin M. Drilon
It is not protected by copyright. reversed the Assistant City Prosecutor's findings and
directed him to move for the dismissal of the case
As in The Trade-Mark Cases, the Court emphasized the against private respondents.
creative component of originality. It described copyright as  Petitioner appealed. Petitioner’s argument:
being limited to "original intellectual conceptions of the Petitioners assert that the format of Rhoda and Me is
author." Originality remains the sine qua non of copyright; a product of ingenuity and skill and is thus entitled to
accordingly, copyright protection may extend only to those copyright protection. It is their position that the
components of a work that are original to the author. This, presentation of a point-by-point comparison of the
then, resolves the doctrinal tension: Copyright treats facts and formats of the two shows clearly demonstrates the
factual compilations in a wholly consistent manner. Facts, nexus between the shows and hence establishes the
whether alone or as part of a compilation, are not original and existence of probable cause for copyright
therefore may not be copyrighted. A factual compilation is infringement.
eligible for copyright if it features an original selection or
arrangement of facts, ISSUE:

We conclude that the names, towns, and telephone numbers Whether, under PD 49, the format or mechanics of the show
copied by Feist were not original to Rural and therefore were owned by petitioner is entitled to copyright protection which
not protected by the copyright in Rural's combined white and can be used to charge infringement against respondent.
yellow pages directory. As a constitutional matter, copyright
protects only those constituent elements of a work that possess
more than a de minimis quantum of creativity. Rural's white RULING:
pages, limited to basic subscriber information and arranged
alphabetically, fall short of the mark. Because Rural's white No.
pages lack the requisite originality, Feist's use of the listings
cannot constitute infringement. Section 2 of P.D. No. 49, otherwise known as the DECREE
ON INTELLECTUAL PROPERTY, enumerates the classes of
__________________________________________________ work entitled to copyright protection, to wit: The format or
mechanics of a television show is not included in the list of
JOAQUIN VS DRILON protected works in 2 of P.D. No. 49. For this reason, the
protection afforded by the law cannot be extended to cover
them. P.D. No. 49, 2, in enumerating what are subject to
FACTS: copyright, refers to finished works and not to concepts. The
copyright does not extend to an idea, procedure, process,
 Petitioner BJ Productions, Inc. (BJPI) is the system, method of operation, concept, principle, or discovery,
holder/grantee of Certificate of Copyright No. M922, regardless of the form in which it is described, explained,
dated January 28, 1971, of Rhoda and Me, a dating illustrated, or embodied in such work.
game show aired from 1970 to 1977.
Copyright, in the strict sense of the term, is purely a statutory (c) To exhibit, perform, represent, produce, or
right. It is a new or independent right granted by the statute, reproduce the copyrighted work in any manner or by
and not simply a pre-existing right regulated by the statute. any method whatever for profit or otherwise; if not
Being a statutory grant, the rights are only such as the statute reproduced in copies for sale, to sell any manuscripts
confers, and may be obtained and enjoyed only with respect to or any record whatsoever thereof;
the subjects and by the persons and on terms and conditions
specified in the statute.  Defendant-appellee, in his answer, countered that the
complaint states no cause of action. While not
What then is the subject matter of petitioners' copyright? This denying the playing of said copyrighted compositions
Court is of the opinion that petitioner BJPI's copyright covers in his establishment, appellee maintains that the mere
audio-visual recordings of each episode of Rhoda and Me, as singing and playing of songs and popular tunes even
falling within the class of works mentioned in P.D. 49, §2(M), if they are copyrighted do not constitute an
to wit: Cinematographic works and works produced by a infringement.
process analogous to cinematography or any process for  The lower court, finding for the defendant, dismissed
making audio-visual recordings; the complaint.

__________________________________________________

FILIPINO SOCIETY OF COMPOSERS, AUTHORS ISSUE:


AND PUBLISHERS, INC., Plaintiff-Appellant, v.
BENJAMIN TAN, Defendant-Appellee. THE LOWER COURT ERRED IN HOLDING THAT THE
MUSICAL COMPOSITIONS OF THE APPELLANT WERE
FACTS: IN THE NATURE OF PUBLIC PROPERTY WHEN THEY
WERE COPYRIGHTED OR REGISTERED.
 Plaintiff-appellant is a non-profit association of
authors, composers and publishers duly organized Whether or not the playing and signing of musical
under the Corporation Law of the Philippines and compositions which have been copyrighted under the
registered with the Securities and Exchange provisions of the Copyright Law (Act 3134) inside the
Commission. Said association is the owner of certain establishment of the defendant-appellee constitute a public
musical compositions among which are the songs performance for profit within the meaning and contemplation
entitled: "Dahil Sa Iyo," "Sapagkat Ikaw Ay Akin," of the Copyright Law of the Philippines
"Sapagkat Kami Ay Tao Lamang" and "The Nearness
Of You." RULING:
 On the other hand, defendant-appellee is the operator
of a restaurant known as "Alex Soda Foundation and Appellee cannot be said to have infringed upon the Copyright
Restaurant" where a combo with professional singers, Law. Appellee’s allegation that the composers of the contested
hired to play and sing musical compositions to musical compositions waived their right in favor of the general
entertain and amuse customers therein, were playing public when they allowed their intellectual creations to
and singing the above-mentioned compositions become property of the public domain before applying for the
without any license or permission from the appellant corresponding copyrights for the same.
to play or sing the same.
 Accordingly, appellant demanded from the appellee
payment of the necessary license fee for the playing The Supreme Court has ruled that "Paragraph 33 of Patent
and singing of aforesaid compositions but the Office Administrative Order No. 3 (as amended, dated
demand was ignored. September 18, 1947) entitled ‘Rules of Practice in the
Philippines Patent Office relating to the Registration of
 Hence, on November 7, 1967, appellant filed a
Copyright Claims’ promulgated pursuant to Republic Act 165,
complaint with the lower court for infringement of
provides among other things that an intellectual creation
copyright against defendant-appellee for allowing the
should be copyrighted thirty (30) days after its publication, if
playing in defendant-appellee’s restaurant of said
made in Manila, or within sixty (60) days if made elsewhere,
songs copyrighted in the name of the former.
failure of which renders such creation public property."
 Appellant filed a complaint with the lower court for
(Santos v. McCullough Printing Company, 12 SCRA 324-325
infringement of copyright against defendant-appellee
[1964]. Indeed, if the general public has made use of the
for allowing the playing in defendant-appellee’s
object sought to be copyrighted for thirty (30) days prior to the
restaurant of said songs copyrighted in the name of
copyright application the law deems the object to have been
the former. accordingly, Appellant anchors its claim
donated to the public domain and the same can no longer be
on Section 3(c) of the Copyright Law which provides
copyrighted.
that:
__________________________________________________
"SEC. 3. The proprietor of a copyright or his heirs or
assigns shall have the exclusive right
 On January 3, 2002, the trial court issued an Order12
granting the motion, and quashed the search warrant
on its finding that there was no probable cause for its
issuance. The court ruled that the work covered by
JESSIE G. CHING, petitioner, the certificates issued to the petitioner pertained to
solutions to technical problems, not literary and
artistic as provided in Article 172 of the Intellectual
vs. Property Code.

WILLIAM M. SALINAS, SR., WILLIAM M. SALINAS, JR.,


 His motion for reconsideration of the order having
JOSEPHINE L. SALINAS, JENNIFER Y. SALINAS,
been denied by the trial court’s Order of February 14,
ALONTO SOLAIMAN SALLE, JOHN ERIC I. SALINAS,
2002, the petitioner filed a petition for certiorari in
NOEL M. YABUT (Board of Directors and Officers of
the CA, contending that the RTC had no jurisdiction
WILAWARE PRODUCT CORPORATION), respondents.
to delve into and resolve the validity of the copyright
certificates issued to him by the National Library.
FACTS:
 On September 26, 2003, the CA rendered judgment
 Jessie G. Ching is the owner and general manager of dismissing the petition on its finding that the RTC did
Jeshicris Manufacturing Co., the maker and not commit any grave abuse of its discretion in
manufacturer of a Utility Model, described as "Leaf issuing the assailed order.
Spring Eye Bushing for Automobile" made up of
plastic.
 The petitioner’s motion for reconsideration of the
 Ching and Joseph Yu were issued by the National
said decision suffered the same fate. The petitioner
Library Certificates of Copyright Registration and
forthwith filed the present petition for review on
Deposit of the said work described therein as "Leaf
certiorari, contending that the revocation of his
Spring Eye Bushing for Automobile."
copyright certificates should be raised in a direct
 Ching requested the National Bureau of Investigation action and not in a search warrant proceeding.
(NBI) for police/investigative assistance for the
apprehension and prosecution of illegal
manufacturers, producers and/or distributors of the ISSUE:
works.
 After due investigation, the NBI filed applications for Whether or not the leaf spring automobile is copyrightable.
search warrants in the RTC of Manila against
William Salinas, Sr. and the officers and members of RULING:
the Board of Directors of Wilaware Product
Corporation. It was alleged that the respondents Being plain automotive spare parts that must conform to the
therein reproduced and distributed the said models original structural design of the components they seek to
penalized under Sections 177.1 and 177.3 of replace, the Leaf Spring Eye Bushing and Vehicle Bearing
Republic Act (R.A.) No. 8293. Cushion are not ornamental. They lack the decorative quality
 The RTC granted the application and issued Search or value that must characterize authentic works of applied art.
Warrant Nos. 01-2401 and 01-2402 for the seizure of They are not even artistic creations with incidental utilitarian
the aforecited articles. functions or works incorporated in a useful article. In
 The respondents filed a motion to quash the search actuality, the personal properties described in the search
warrants on the following grounds: warrants are mechanical works, the principal function of
which is utility sans any aesthetic embellishment.
a) the subject matter of the registrations are not
artistic or literary; Neither are we to regard the Leaf Spring Eye Bushing and
Vehicle Bearing Cushion as included in the catch-all phrase
b) the subject matter of the registrations are spare "other literary, scholarly, scientific and artistic works" in
parts of automobiles meaning – there (sic) are Section 172.1(a) of R.A. No. 8293. Applying the principle of
original parts that they are designed to replace. ejusdem generis which states that "where a statute describes
Hence, they are not original things of a particular class or kind accompanied by words of a
generic character, the generic word will usually be limited to
c) The respondents averred that the works covered by things of a similar nature with those particularly enumerated,
the certificates issued by the National Library are not unless there be something in the context of the state which
artistic in nature; they are considered automotive would repel such inference,"46 the Leaf Spring Eye Bushing
spare parts and pertain to technology. They aver that and Vehicle Bearing Cushion are not copyrightable, being not
the models are not original, and as such are the of the same kind and nature as the works enumerated in
proper subject of a patent, not copyright. Section 172 of R.A. No. 8293.

__________________________________________________
copyrighted products of MANLY are not original creations
subject to the protection of RA 8293.

RULING:

The trial court also properly quashed the search warrant it


earlier issued after finding upon reevaluation of the evidence
that no probable cause exists to justify its issuance in the first
[G.R. NO. 165306. September 20, 2005] place. As ruled by the trial court, the copyrighted products do
not appear to be original creations of MANLY and are not
among the classes of work enumerated under Section 172 of
MANLY SPORTWEAR MANUFACTURING, INC., RA 8293.
Petitioners, v. DADODETTE ENTERPRISES AND/OR
HERMES SPORTS CENTER, Respondent.
The copyright certificates issued in favor of MANLY
constitute merely prima facie evidence of validity and
FACTS: ownership. However, no presumption of validity is created
where other evidence exist that may cast doubt on the
 On March 14, 2003, Special Investigator Eliezer P. copyright validity. Hence, where there is sufficient proof that
Salcedo of the National Bureau of Investigation the copyrighted products are not original creations but are
(NBI) applied for a search warrant before the readily available in the market under various brands, as in this
Regional Trial Court (RTC) of Quezon City, based case, validity and originality will not be presumed and the trial
on the information that Dadodette Enterprises and/or court may properly quash the issued warrant for lack of
Hermes Sports Center were in possession of goods, probable cause.
the copyright of which belonged to Manly
Sportswear Mfg., Inc.
 After finding reasonable grounds that a violation of
Sections 172 and 217 of Republic Act (RA) No.
82936 has been committed, Judge Estrella T. Estrada
of RTC-Quezon City, Branch 83, issued on March
17, 2003 Search Warrant No. 4044(03)
 Respondents thereafter moved to quash and annul the
search warrant contending that the same is invalid
since the requisites for its issuance have not been
complied with. They insisted that the sporting goods
manufactured by and/or registered in the name of
MANLY are ordinary and common hence, not among
the classes of work protected under Section 172 of
RA 8293.
 the trial court granted the motion to quash and
declared Search Warrant No. 4044(03) null and void
based on its finding that the copyrighted products of
MANLY do not appear to be original creations and
were being manufactured and distributed by different
companies locally and abroad under various brands,
and therefore unqualified for protection under
Section 172 of RA 8293. Moreover, MANLY's
certificates of registrations were issued only in 2002,
whereas there were certificates of registrations for the
same sports articles which were issued earlier than
MANLY's, thus further negating the claim that its
copyrighted products were original creations.
 On August 11, 2003, the trial court denied9
MANLY's motion for reconsideration. Hence it filed
a petition for certiorari 10 before the Court of
Appeals which was denied for lack of merit.

ISSUE:

Whether or not the Court of Appeals erred in finding that the


trial court did not gravely abuse its discretion in declaring in
the hearing for the quashal of the search warrant that the

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