G.R. No. 195956 , March 11, 2015.
ABS-CBN CORPORATION, Petitioner, vs. FELIPE GOZON, GILBERTO R. DUAVIT, JR., MARISSA L. FLORES, JESSICA A. SOHO, GRACE DELA PENA-REYES, JOHN OLIVER T. MANALASTAS, JOHN DOES AND JANE DOES, Respondents.

FACTS

Petitioner ABS-CBN Corporation filed a complaint for copyright infringement under the Intellectual Property Code against respondents, who are officers and employees of GMA Network, Inc. The controversy arose from GMA-7’s news coverage on July 22, 2004, of the homecoming of Filipino overseas worker and hostage victim Angelo dela Cruz. ABS-CBN conducted live audio-video coverage of the arrival at NAIA and the subsequent press conference, and allowed Reuters Television Service to air its footage under a special embargo agreement stating the footage was for Reuters’ international subscribers only and embargoed against use by other subscribers in the Philippines. GMA-7, a subscriber to Reuters and CNN, received a live video feed of the coverage from Reuters and immediately carried it in its program “Flash Report,” together with its live broadcast. GMA-7 alleged it was not aware that Reuters was airing ABS-CBN’s footage and did not see any “No Access Philippines” notice or embargo notice. The City Prosecutor found probable cause and filed an Information against some respondents. The Department of Justice (DOJ) Secretary Gonzalez reversed this, dismissing the case and holding good faith may be a defense. Later, DOJ Acting Secretary Agra reversed the Gonzalez Resolution, finding probable cause to charge respondents, ruling that good faith is a disputable presumption to be proven at trial. The Court of Appeals granted respondents’ petition, reinstating the Gonzalez Resolution, holding that their act of airing a five-second footage was attended by good faith, which exculpates them from criminal liability, and that criminal culpability attaches only when infringement is knowingly and intentionally committed.

ISSUE

The main issue is whether there is probable cause to charge respondents with copyright infringement under the Intellectual Property Code for rebroadcasting ABS-CBN’s footage, and whether good faith negates criminal prosecution for such infringement.

RULING

The Supreme Court DENIED the petition and AFFIRMED the Court of Appeals Decision. The Court held that there was no probable cause to charge respondents with copyright infringement. The footage of Angelo dela Cruz’s arrival, being a live report of a news event, was not copyrightable. The Court stated that news reports as accounts of daily events are not protected by copyright, as they are factual reports that belong to the public domain. The Court emphasized that copyright does not extend to the facts or events themselves, but to the particular expression of an idea. Since the footage was a straightforward depiction of a news event without any creative element or commentary that could be considered an original work, it was not a copyrightable work under the Intellectual Property Code. Consequently, respondents could not be held liable for infringement. The Court also noted that the issue of good faith need not be addressed since the material was not copyrightable. However, it observed that for criminal liability under the Intellectual Property Code, the infringement must be done with malice or bad faith, and the presence of good faith negates criminal intent.