PLDT loses P20-M theft suit vs Japan call center

BY KERLYN G. BAUTISTA, BusinessWorld Reporter The Philippine Long Distance Telephone Co. (PLDT) has lost a P20-million theft suit against a Japanese-led call center for alleged unauthorized resale of international voice calls. In a 27-page decision, the Supreme Court reversed a Court of Appeals ruling that found Baynet Co. liable for theft as charged by PLDT in 2000. The high court ruled the allegations of PLDT do not constitute theft of personal property as described under the revised penal code. Baynet, chaired by Japanese national Yuji Hijoka, allegedly had engaged in a network fraud known as international simple resale, which is a method of routing international calls using international private leased lines, cables and antenna to connect directly to the local exchange facilities of the country-destination. "We have reviewed the amended information and find that, as mentioned by the petitioner, it does not contain material allegations charging the petitioner of theft of personal property," the court said. "It thus behooved the trial court to quash the amended information. The order of the trial court denying the motion of the petitioner to quash the amended information is a patent nullity," it added. In February 2000, PLDT sued Baynet for allegedly evading payment of access, termination or bypass charges and accounting rates, as well as failure to comply with the regulatory requirements through ISR. The telco pointed out that Baynet was "effectively stealing international calls belonging to PLDT, while using its facilities in the estimated amount of P20.3 million to the damage and prejudice" of PLDT. The high court, however, gave credence to the defendant’s contention that international long-distance calls are not personal property and that telephone calls with the use of PLDT phone lines, whether domestic or international, belong to the persons making the call, not to PLDT. The court said under Article 308 of the revised penal code, "theft is committed by any person who, with intent to gain, but without violence, against or intimidation of persons nor force upon things, shall take personal property of another without the latter’s consent". The court, however, admitted that lawmakers could not have contemplated the human voice which is converted into electronic impulses through Public Switch Telephone Network (PSTN), Internet Protocol Line (IPL) and ISR in defining theft under Article 308. "When the Revised Penal Code was approved on Dec. 8, 1930, international telephone calls and the transmission routing of electronic voice signals or impulses emanating from said calls were still nonexistent," it said.