G.R. No. 188933 , February 21, 2023
PHILIPPINE HOME CABLE HOLDINGS, INC., PETITIONER, VS. FILIPINO SOCIETY OF COMPOSERS, AUTHORS & PUBLISHERS, INC., RESPONDENT.

FACTS

Petitioner Philippine Home Cable Holdings, Inc. (Home Cable) is a cable television system operator. It executed Memoranda of Agreement with Precision Audio Video Service, Inc. (Precision Audio), which guaranteed it had full copyright over videoke laser disc recordings. Home Cable purchased these discs and used them to broadcast content on its channels 22, 32, and 38, which it controlled and operated. Respondent Filipino Society of Composers, Authors and Publishers, Inc. (Filscap) is a non-profit association that represents Filipino and foreign composers, authors, and publishers, having acquired their performance and communication rights through assignment and reciprocal agreements. Filscap monitored Home Cable in 1997 and 1998 and found that musical compositions from its repertoire were being played on Home Cable’s channels without a license. Despite demand letters, Home Cable did not obtain a license. Filscap filed a Complaint for injunction and damages for copyright infringement. The Regional Trial Court found Home Cable liable. The Court of Appeals affirmed with modification, reducing the damages awarded. Home Cable filed a Petition for Review, arguing its retransmission did not constitute infringement, citing ABS-CBN Broadcasting Corp. v. Philippine Multi-Media System, Inc.; that Filscap lacked the specific “communication to the public” right; and that Precision Audio and others were indispensable parties.

ISSUE

Whether Home Cable is liable for copyright infringement for transmitting musical compositions fixed in audiovisual works via its cable television channels without authorization from the copyright holder or its representative.

RULING

Yes, Home Cable is liable for copyright infringement. The Supreme Court affirmed the Court of Appeals’ modified decision. The Court held that when a cable television system operator transmits a musical composition fixed in an audiovisual derivative work over a channel it controls and operates, it is making that work accessible to the public from a place and time individually chosen by them. This constitutes a “communication to the public” under the Intellectual Property Code. The Court distinguished this case from ABS-CBN, noting that Home Cable exercised control and responsibility over the channels in question, unlike a mere passive retransmitter. The Court also found that Filscap validly held the communication rights through the assignments and reciprocal agreements, granting it standing to sue. The indemnity agreements between Home Cable and its content providers (like Precision Audio) did not absolve Home Cable from liability to the copyright owners. The awards for temperate damages, exemplary damages, and attorney’s fees were upheld as modified by the Court of Appeals.