The Supreme Court en banc has affirmed the right of the Filipino
Society of Composers, Authors and Publishers, Inc. (FILSCAP) to collect
royalties over copyrighted works of its member artists.
FILSCAP is a non-profit society of composers, authors, and publishers
that owns public performance rights over the copyrighted musical works of its
members. It also owns the right to license public performances in the
Philippines of copyrighted foreign musical works of its members and affiliate
performing rights societies abroad.
The case arose upon the refusal of Anrey Inc., the operator of two restaurants
in Baguio, to pay FILSCAP for the unauthorized use of its members’ copyrighted
music. Anrey Inc. argued that its establishments were merely playing music
being broadcast over the radio, whose royalties have already been paid for by
the radio stations.
After FILSCAP sent several demand letters which remained unheeded,
FILSCAP filed a complaint for copyright infringement before the Regional Trial
Court (RTC). The RTC dismissed FILSCAP’s complaint for lack of merit citing Sec.
184 (i) of RA 8293, or the Intellectual Property Code of the Philippines, which
exempts public performances by a club or institution for charitable or
educational purposes provided, they are not profit making and they do not
charge admission fees. On appeal, the Court of Appeals (CA) affirmed the
decision of the RTC.
In deciding the sole issue of whether the unlicensed playing of radio
broadcasts using loudspeakers as background music in an establishment amounts
to copyright infringement, the Supreme Court ruled that such act is, in itself,
a performance separate from the radio broadcast, and is thus entitled to its
own protection.
The Supreme Court explained: “A radio reception creates a
performance separate from the broadcast. This 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.”
Accordingly, it is immaterial if the broadcasting station has been licensed by
the copyright owner. The reception of the broadcast becomes a new public
performance requiring separate protection.
Further, the Supreme Court held that radio
reception transmitted through loudspeakers to enhance profit does not
constitute, and is not analogous to, fair use. The circumstances under which
the copyrighted music was being played weighed against Anrey Inc.’s argument of
fair use. In this case, the copyrighted songs in their entirety were being
played publicly throughout Anrey Inc.’s establishments. The Supreme Court
explained that “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.” This commercial use,
according to the Supreme Court, “is beyond the normal exploitation of the
copyright holder’s creative work.”