SC rules in favor of FILSCAP, upholds right over copyrighted works

The Supreme Court has upheld the right of the Filipino Society of Composers, Authors, and Publishers (FILSCAP) to collect license fees and royalties over copyrighted works of its member artists.

In a statement, the High Court said it granted the petition for review on certiorari filed by FILSCAP, seeking to reverse and set aside the Court of Appeals ruling that affirmed the decision and order of the Baguio City Regional Trial Court. The Baguio RTC dismissed the complaint of FILSCSAP.

The Supreme Court said that FILSCAP is accredited by the Intellectual Property of the Philippines to perform the role of a Collective Management Organization and a member of the Paris-based International Confederation of Societies of Authors and Composers.

It said that it is evident that the first element of copyright infringement has been satisfied.

Due to this, the SC ordered respondent Anrey, Inc. (Anrey) to pay the FILSCAP P10,000 as temperate damages for the unlicensed public performance of the copyrighted songs and P50,000 as attorney's fees, plus an interest rate of 12% per annum from September 8, 2009 until June 30, 2013, and thereafter, 6% per annum from July 1, 2013, until finality.

It said the amount will be subject to interest at the rate of 6% per annum from reckoned from the date of finality of this judgment.

The case stemmed from when a FILSCAP representative monitored that between July and September 2008, two branches of the Sizzling Plate Restaurant in Baguio City played copyrighted music owned by FILSCAP.

Both were owned by respondent Anrey.

In its defense, Anrey denied playing any copyrighted music and said that its establishments played whatever was being broadcast on the radio they were tuned in to.

Citing US jurisprudence, however, the High Court ruled that playing radio broadcasts containing copyrighted music through loudspeakers is a performance.

It also said it was not persuaded by Anrey’s argument that it is exempt from securing a license since the radio station that broadcast the music already secured a license from FILSCAP.

The Court held that the free use by commercial establishments of radio broadcasts is beyond the normal exploitation of creative work.

According to the Court, the denial of the petition would affect the copyright holder’s market wherein instead of paying royalties, establishments will instead use free radio reception.

The Court found that the right of FILSCAP to license the public performance of the copyrighted works, the public performance without a license from FILSCAP, and the refusal of Anrey to pay the license fees were duly established.

Meanwhile, the Court also ordered that a copy of the decision be furnished to the Intellectual Property Office of the Philippines for guidance, and to the House of Representatives and the Senate of the Philippines for possible amendments to the Intellectual Property Code without violating the Berne Convention and the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.

The Berne Convention states that authors of musical works shall enjoy the exclusive right of authorizing the public performance of their works including the “public performance by any means or process” and “any communication to the public of the performance of the works.” — RSJ, GMA News