G.R. No. 222537 , February 28, 2023
COSAC, INC., PETITIONER, VS. FILIPINO SOCIETY OF COMPOSERS, AUTHORS AND PUBLISHERS, INC., RESPONDENT.

FACTS

The case involves petitioner COSAC, Inc., owner and operator of Off the Grill Bar and Restaurant. Respondent FILSCAP, a Collective Management Organization (CMO) accredited by the Intellectual Property Office, discovered through monitoring that COSAC was playing copyrighted music in its establishment without obtaining the necessary license or paying corresponding fees. FILSCAP sent demand letters to COSAC, which were refused. FILSCAP then filed a Complaint for copyright infringement and damages. COSAC, in its Answer, questioned FILSCAP’s authority to enforce music copyright and denied committing infringement, without explicitly raising defenses under the exceptions to copyright infringement.

ISSUE

Whether COSAC is liable for copyright infringement for publicly performing copyrighted musical works without authorization.

RULING

Yes, COSAC is liable for copyright infringement. The Separate Concurring Opinion concurs with the main decision’s finding of liability. The gravamen of copyright infringement is the unauthorized performance of any of the exclusive economic rights of the copyright owner. COSAC exercised the authors’ exclusive rights under Section 177 of the Intellectual Property Code by: (1) hiring a live band to perform copyrighted musical compositions, which constitutes a “public performance” under Section 177.6; and (2) playing copyrighted musical compositions contained in sound recordings via a projector, which constitutes either a “public performance” under Section 177.6 or a “communication to the public” under Section 177.7. These acts do not fall under the limitations on copyright (Section 184) or the fair use doctrine (Section 185). The opinion extensively discusses the distinction between the right of public performance and the right of communication to the public, both of which are encompassed in the “public performing rights” assigned to FILSCAP. It also elaborates on the limitations on copyright and the four-factor test for fair use (purpose and character of use, nature of copyrighted work, amount and substantiality used, and effect on the potential market), concluding that COSAC’s commercial use does not qualify. The opinion further emphasizes the need for reasonable considerations in quantifying damages to balance the interests of copyright owners and the public.