The Supreme Court has set aside the rulings made by the Court of Appeals and regional trial court in Baguio concerning the collection of royalty fees by the Filipino Society of Composers, Authors and Publishers, Inc. (Filscap) from establishments that play music from radio broadcasts.
Thirteen years ago, Filscap sued Anrey, Inc., operator of Baguio-based restaurant Sizzling Plate, for refusing to pay license fees.
The RTC denied the Filscap’s collection of license fees or royalties over copyrighted works of its members-artists and which was later affirmed by the CA.
Filscap filed a petition for review on certiorari before the SC where the en banc, in a decision penned by Justice Rodil Zalameda, found merit in the group’s petition.
The SC said Filscap has a right to sue for copyright infringement – it being the group accredited by the Intellectual Property Office to perform the role of a Collective Management Organization and a member of the Paris-based International Confederation of Societies of Authors and Composers, the umbrella organization of all composer societies worldwide.
The SC said as an assignee of copyright, it is entitled to all the rights and remedies which the assignor had with respect to the copyright.
Citing U.S. jurisprudence, the SC said playing radio broadcasts containing copyrighted music through the use of radio-over-loudspeakers is, in itself, a performance.
The SC was also not convinced by Anrey’s argument that it is exempt from securing a license since the radio station that broadcast the music played in their restaurant already secured one from Filscap.
The SC said a radio reception creates a performance separate from the broadcast, which is otherwise known as the “doctrine of multiple performances” which provides that a radio (or television) transmission or broadcast can create multiple performances at once. Thus, on whether the reception of a broadcast may be publicly performed, it is immaterial if the broadcasting station has been licensed by the copyright owner because the reception becomes a new public performance requiring separate protection.
In the case of Anrey, the SC said the reception was transmitted through loudspeakers within its restaurants. While Anrey does not directly charge a fee for playing radio broadcasts over its speakers, such reception is clearly done to enhance profit by providing entertainment to the public, particularly its customers, who pay for the dining experience in Anrey’s restaurants.
As a result, the SC ordered Anrey to pay Filscap P10,000 as temperate damages for the unlicensed public performance of the copyrighted songs and P50,000 as attorney’s fees, plus interest at the rate of 12 percent per annum from Sept. 8, 2009 until June 30, 2013, and thereafter, six percent per annum from July 1, 2013 until finality of the court’s judgment. Such amount shall be subject to interest at the rate of six percent per annum reckoned from the date of finality of the judgment.
The SC also ordered that a copy of the decision be furnished the IPO, the House of Representatives and the Senate for possible amendments on the Intellectual Property Code noting that the very broad definition of a “public performance” in the Code is a cause for concern.
The SC said that by the mere definition of what a public performance is, listeners of a radio station, to some extent, risks copyright infringement. It noted that foreign jurisdictions have recognized this dilemma, with some having already taken steps to address the situation.
Filscap is a non-profit society of composer, authors, and publishers that owns public performance rights over the copyrighted musical works of its members. It is deputized to enforce and protect the copyrighted works of its members or affiliates by issuing licenses and collecting royalties and/or license fees from anyone who publicly exhibits or performs music belonging to Filscap’s worldwide repertoire. – Rimaliza A. Opiña
