G.R. No. 184661 , February 25, 2025
Filipino Society of Composers and Publishers (FILSCAP), Petitioner, vs. Wolfpac Communications, Inc., Respondent.

FACTS

This is a Separate Concurring Opinion by Justice Dimaampao in a case where the Filipino Society of Composers and Publishers (FILSCAP) filed a complaint for copyright infringement against Wolfpac Communications, Inc. (Wolfpac). The dispute centers on Wolfpac’s use of a “pre-listening function,” which provided 20-second previews of songs to potential customers to help them decide whether to purchase those songs as ringback tones. FILSCAP argued this use constituted infringement, while Wolfpac claimed it was “fair use.”

ISSUE

Whether Wolfpac’s “pre-listening function” constitutes fair use of the copyrighted musical works, particularly focusing on the transformative nature of the use under the first factor of the fair use test (the purpose and character of the use).

RULING

Justice Dimaampao concurs in the dismissal of FILSCAP’s complaint, holding that Wolfpac’s pre-listening function constitutes fair use. The opinion provides a detailed analysis of the first fair use factor, drawing guidance from American jurisprudence on transformative use.
1. On the Commercial Nature of the Use: While Wolfpac’s use served a commercial function (advertising the sale of ringback tones), this does not automatically bar a finding of fair use. The commercial use here was “more incidental and less exploitative in nature.” It was in furtherance of a pre-existing agreement with the composers and did not seek profit in a way that exceeded the original contract. Therefore, the commercial nature weighs only slightly against fair use.
2. On the Transformative Character of the Use: Wolfpac’s use is transformative. Although the 20-second samples were taken directly from the songs, they served an entirely new and different function from the original works. The original songs aim to entertain. The ringback tones, derived from the songs, function to signal an incoming call. The pre-listening function, derived from the ringback tones, serves to inform consumer choice. There is no evidence the composers created their works for use as ringback tones or for pre-listening. The brevity of the previews strips them of entertainment value, and they cannot be downloaded for independent use. Therefore, the function is not a mere repackaging but adds new purpose and is transformative.
3. On the Goals of Intellectual Property Law: The fair use exception in the Intellectual Property Code aims to balance protection with the development of creative activity. Wolfpac’s use promotes the goals of the IP Code and the fair use doctrine because it does not stifle creativity—the previews do not supplant the need for the original songs—and it benefits the public by enhancing consumer protection.
*Based on this analysis, the first factor of the fair use test favors Wolfpac, supporting the overall conclusion that the pre-listening function is a fair use.*