James LIPTON, Plaintif-Counter-efendant-Appellee, !. T"e
NATU#$ CO%PAN&, d'a T"e Nature Compan( of California, efendant-Cross-Claimant, %ic"ael )ein, efendant-Cross- efendant-Appellant, Animal )isdom $nterprises, Inc., efendant-Counter-Claimant-Appellant. *+,+, oc-et ./-.*01.No. Ar3ued Sept. *+, *..,. -- No!em'er 0+, *.., Before: MINER, MAHONEY, and CABRANES, Circuit Judges. Nanc J. !e"sten, Ne# Yor$ Cit %Marcia B. &au", 'a Co""er ( Boose, Ne# Yor$ Cit, on t)e *rief+, for &"ainti,-Counter-.efendant-A//e""ee. 0. .ona"d &rut12an, Ne# Yor$ Cit %Stec)er Jag"o2 ( &rut12an, Ne# Yor$ Cit, Jo)n &. Sutton, Ha3erstoc$, Med"en ( Carro"", San !rancisco, Ca"ifornia, on t)e *rief+ for .efendants-Counter-C"ai2ants-A//e""ants. 4)is is an a//ea" fro2 a 5na" 6udg2ent of t)e 7nited States .istrict Court for t)e Sout)ern .istrict of Ne# Yor$ %Ric)ard O#en, Judge+, granting /"ainti,-a//e""ee Ja2es 0i/ton8s %90i/ton:+ 2otion for su22ar 6udg2ent on )is co/rig)t and 0an)a2 Act c"ai2s against defendants Ani2a" ;isdo2 Enter/rises, Inc. %9A;E:+, its /resident and /rinci/a" stoc$)o"der, Mic)ae" ;ein %9;ein:+, and 4)e Nature Co2/an, %9Nature:+. < ;ein and A;E a//ea".= 4)e Octo*er <> order a#arded t)e /"ainti, en)anced statutor da2ages in t)e a2ount of ?<@@,@@@, costs and attornes8 fees, and entered a /er2anent in6unction restraining t)e defendants fro2 furt)er infringe2ent. = 4)ese inc"uded a 5nding t)at t)e /"ainti,- a//e""ee8s #or$ #as /rotecti*"e under co/rig)t "a#, 0i/ton 3. 4)e Nature Co., AB< !.Su//. <@CD %S...N.Y.<EED+, an a#ard of su22ar 6udg2ent to t)e /"ainti, on )is co/rig)t and 0an)a2 Act c"ai2s, and a 5nding t)at t)e defendants #ere #i""fu" infringers. =4)e district court8s order and 5na" 6udg2ent #it) res/ect to ;ein and A;E, entered on Octo*er <>, <EE>, i2/"e2ented 3arious 2e2orandu2 o/inions and orders /re3ious" issued * t)e court. = Bac$groundFI. At issue in t)is case is a co2/i"ation of 9ter2s of 3ener: D <<DG.=>C%a+ of t)e 0an)a2 4rade2ar$ Act, <G 7.S.C. H=G@< et seI., and unfair" co2/eted #it) 0i/ton, in 3io"ation of H= 0i/ton8s co2/"aint a""eged t)at t)e defendants created 3arious /osters and ot)er /roducts t)at infringed t)e co/rig)t of t)e 5rst and second editions of )is *oo$, in 3io"ation of <A 7.S.C. H= 4)e 5rst edition of t)e *oo$ #as /u*"is)ed in <EJB, and t#o su*seIuent editions #ere /u*"is)ed in <EAA and <EE<K 0i/ton )o"ds a 3a"id co/rig)t to a"" t)ree 3ersions of t)e *oo$. =-co""ecti3e ter2s for identifing certain ani2a" grou/s-gat)ered and /u*"is)ed * t)e aut)or and et2o"ogist Ja2es 0i/ton in )is *oo$, An ELa"tation of 0ar$s. In t)e course of doing so, )e disco3ered t)at Nature )ad a"read "icensed t)e rig)ts to a 3irtua"" identica" co2/i"ation of ter2s of 3ener fro2 t)e defendant, ;ein.= In <EE@, in an atte2/t to furt)er ca/ita"i1e on t)e success of )is *oo$, 0i/ton soug)t to "icense )is co2/i"ation for use on 3arious /roducts. = 4)e 5rst and second editions of t)e *oo$, #)ic) inc"ude scattered i""ustrations and eL/"anator teLt, #ere a considera*"e success and )a3e so"d o3er <G@,@@@ co/ies to date. = According to 0i/ton, )e trans"ated t)e ter2s fro2 Midd"e Eng"is) to 2odern Eng"is) and arranged t)e2 *ased on t)eir 9"rica" and /oetic /otentia".: =0i/ton co2/i"ed )is ter2s of 3ener t)roug) researc) of 3arious 5fteent)-centur teLts and 2anuscri/ts. In <EBB, ;ein, doing *usiness as 9Ani2a" ;isdo2,: C 4)e Mu"titudes /oster, as #e"" as a note cu*e 2ar$eted * Nature, inc"uded co/rig)t notices in t)e na2es of ;ein and Nature.= 4)e cata"og co/ acco2/aning t)e Mu"titudes /oster stated, 9Mic)ae" ;ein )as sur3eed t)e Eng"is) "anguage *ac$ to its ear"iest roots to co2/i"e a "ist of t)e 2ost re2ar$a*"e M na2es of ani2a" 2u"titudes e3er asse2*"ed.: = Nature so"d t)ese /roducts *ot) in its stores and t)roug) its cata"ogs. = Bet#een <EBE and <EE@, Nature and ;ein entered into a series of "icensing agree2ents * #)ic) Nature acIuired t)e rig)t to use ;ein8s co2/i"ation of ani2a" ter2s on a series of /osters, t-s)irts, and ot)er /roducts, #)ic) ca2e to *e $no#n as t)e 9Mu"titudes: /roducts. = In <EBB, )e a//roac)ed Nature, a retai"er s/ecia"i1ing in /roducts a*out t)e en3iron2ent, to 2ar$et )is co2/i"ation. = ;ein 2anufactured and so"d /osters %9t)e ;ein /osters:+ of t)e co2/i"ation to 3arious 1oos, "i*raries, and ot)er entities. =5"ed for co/rig)t registration of a co2/i"ation of ani2a" ter2s, re/resenting t)at t)e #or$ #as origina" to )i2. In its /ro2otiona" *roc)ure, A;E stated t)at it )ad 9t)oroug)" researc)ed do1ens and do1ens of ani2a"s, 5s) and *irds to unco3er correct ter2ino"og.:= In <EE<, ;ein incor/orated Ani2a" ;isdo2 Enter/rises to 2ar$et and distri*ute t)ese /roducts as t)e 9Ani2a" Congregations: "ine of 2erc)andise. =Si2u"taneous", ;ein continued to 2ar$et and se"" 3arious ada/tations of t)e initia" ;ein /oster. ;)en t)e refused, 0i/ton *roug)t t)e /resent suit a""eging co/rig)t infringe2ent and unfair co2/etition.=7/on "earning of Nature8s and ;ein8s actions, 0i/ton sent a "etter de2anding t)at t)e sto/ and reIuesting co2/ensation for t)e a""eged infringe2ent. ;ein and Eng"is) contend t)at t)e order of t)e ter2s on t)e scarf #as 9s)uNed: on t)e /oster to /"ace so2e of t)e 2ore co22on, recogni1a*"e ter2s at t)e *eginning of t)e /oster and 9to 2a$e Ot)e ter2sP Qo# around t)e /ieces of art#or$ inserted.:= Bot) )e and Eng"is) ins/ected t)e scarf, and 5nding no co/rig)t notice, t/eset t)e ter2s "isted on it. = According to ;ein, )e decided to 2ar$et t)e ter2s on t)e scarf as a /oster in <EBB. = Bot) ;ein and )is art director, Mic)ae" Eng"is), testi5ed t)at t)e scarf #as &age * of /* t)e so"e source of t)e co2/i"ation featured on t)e initia" /oster t)at ;ein 2ar$eted to "i*raries and 2useu2s. = 4)is scarf #as 2ar$ed as an eL)i*it during ;ein8s de/osition and #as a3ai"a*"e to t)e district court. = According to ;ein, t)is scarf, #)ic) "isted AC ani2a" ter2s and one cr/tic ter2-9a sno/tic of SCI:-#as an unso"icited /ro2otiona" ite2 fro2 an unidenti5ed source. =;ein denies co/ing an edition of 0i/ton8s *oo$ and c"ai2s t)at t)e ter2s used on t)e ;ein /oster and t)e Mu"titudes /roducts #ere co/ied fro2 a *anner or scarf %9t)e scarf:+ t)at )e recei3ed in t)e "ate <EJ@8s #)i"e #or$ing as an ad3ertising eLecuti3e in Ne# Yor$ Cit. ;ein c"ai2s t)at it #as not unti" se3era" ears "ater, in connection #it) A;E8s 9Ani2a" Congregations: "ine, t)at )e conducted furt)er researc) and incor/orated additiona" ter2s of 3ener t)at did not a//ear on t)e scarf.= ;ein contends t)at after a//roac)ing Nature in t)e su22er of <EBB, )e consu"ted anot)er source, Jo)n 4rain8s Re2ar$a*"e ;ords #it) Astonis)ing Origins, *ut on" used t)e 4rain *oo$ to c)ec$ t)e accurac of t)e ter2s in t)e co2/i"ation t)at )e )ad gi3en to Nature. = Ho#e3er, since t)e 5"ing of t)is action, ;ein )as consistent" stated t)at t)e scarf #as t)e source of t)e co2/i"ation. =;ein8s testi2on a*out t)e scarf is contradicted * t)e fact t)at /rior to t)e 5"ing of 0i/ton8s co2/"aint, )e re/resented to Nature and to 0i/ton8s attorne t)at )e )ad co2/i"ed t)e "ist )i2se"f fro2 ter2s t)at )e )ad #ritten on s"i/s of /a/er o3er t)e ears. 4)e court a"so found ;ein and A;E "ia*"e for 3io"ation of t)e 0an)a2 Act, noting:=G@>%c+%D+. = 4)e court found ;ein and A;E "ia*"e for co/rig)t infringe2ent and, citing ;ein8s 9contradictor eL/"anations: for t)e source of )is co2/i"ation, found t)eir infringe2ent to *e #i""fu" /ursuant to <A 7.S.C. H= B o/inion dated Se/te2*er DC, <EEC and order and 6udg2ent entered Octo*er <>, <EE>, t)e district court granted su22ar 6udg2ent in fa3or of t)e /"ainti, on a"" counts against defendants ;ein and A;E. = 0i/ton 3. 4)e Nature Co., AB< !.Su//. <@CD %S...N.Y.<EED+. =On Januar <J, <EED, t)e district court denied t)e defendants8 2otion to dis2iss, 5nding t)at 0i/ton8s co2/i"ation of ter2s #as origina" to )i2 and t)erefore /rotecti*"e under co/rig)t "a#. >C%a+.= 4)ese co/rig)t notices M are fa"se designations of origin, and constitute actiona*"e fa"se c"ai2s of origina"it under H=Nature featured t#o se/arate co/rig)t notices on its /oster, in ;ein8s na2e for t)e co2/i"ation, and in Nature8s na2e. M M &"ainti,8s /roof M gi3es rise to a re*utta*"e /resu2/tion of consu2er confusion, #)ic) in turn entit"es /"ainti, to da2ages under t)e 0an)a2 Act. According", t)e district court en6oined t)e defendants fro2 use of an ter2s t)at, toget)er or se/arate", are su*stantia"" si2i"ar to t)ose found in 0i/ton8s *oo$ and a#arded 0i/ton costs, attornes8 fees, and en)anced statutor da2ages in t)e a2ount of ?<@@,@@@.=O/inion of Se/t. DC, <EEC, at <D, <>. .iscussionFII. 4)e Su22ar Judg2ent StandardFA. Ruinn 3. Sracuse Mode" Neig)*or)ood Cor/., J<C !.Dd >CB, >>G %Dd Cir.<EB@+ %Iuoting SEC 3. Researc) Auto2ation Cor/., GBG !.Dd C<, CC %Dd Cir.<EAB++.= !ina"", 9S2ere conc"usor a""egations or denia"s8: in "ega" 2e2oranda or ora" argu2ent are not e3idence and cannot * t)e2se"3es create a genuine issue of 2ateria" fact #)ere none #ou"d ot)er#ise eList. =Ce"oteL Cor/. 3. Catrett, >AA 7.S. C<A, CDD-DC, <@J S.Ct. DG>B, DGGD-GC, E< 0.Ed.Dd DJG %<EBJ+. = 4)e non-2o3ing /art 2a defeat t)e su22ar 6udg2ent 2otion * /roducing suTcient s/eci5c facts to esta*"is) t)at t)ere is a genuine issue of 2ateria" fact for tria". ='nig)t 3. 7.S. !ire Ins. Co., B@> !.Dd E, <D %Dd Cir.<EBJ+, cert. denied, >B@ 7.S. ECD, <@A S.Ct. <GA@, E> 0.Ed.Dd AJD %<EBA+. = ;)i"e t)e court 2ust 3ie# t)e inferences to *e dra#n fro2 t)e facts in t)e "ig)t 2ost fa3ora*"e to t)e /art o//osing t)e 2otion, Matsus)ita E"ec. Indus. Co. 3. Uenit) Radio Cor/., >AG 7.S. GA>, GBA, <@J S.Ct. <C>B, <CGJ, BE 0.Ed.Dd GCB %<EBJ+, a /art 2a not 9re" on 2ere s/ecu"ation or con6ecture as to t)e true nature of t)e facts to o3erco2e a 2otion for su22ar 6udg2ent.: =Anderson 3. 0i*ert 0o**, Inc., >AA 7.S. D>D, D>A->B, <@J S.Ct. DG@G, DG<@, E< 0.Ed.Dd D@D %<EBJ+ %e2/)asis in origina"+. =9O4P)e 2ere eListence of so2e a""eged factua" dis/ute *et#een t)e /arties #i"" not defeat an ot)er#ise /ro/er" su//orted 2otion for su22ar 6udg2entK t)e reIuire2ent is t)at t)ere *e no genuine issue of 2ateria" fact.: =!ed.R.Ci3.&. GJ%c+. = Su22ar 6udg2ent s)a"" *e granted 9if t)e /"eadings, de/ositions, ans#ers to interrogatories, and ad2issions on 5"e, toget)er #it) t)e aTda3its M s)o# t)at t)ere is no genuine issue as to an 2ateria" fact and t)at t)e 2o3ing /art is entit"ed to a 6udg2ent as a 2atter of "a#.: = Hea" 3. Ric) &rods. Cor/., EB< !.Dd JB, AD %Dd Cir.<EED+. =;e re3ie# a district court8s grant of su22ar 6udg2ent de no3o to deter2ine #)et)er t)ere is a genuine issue of 2ateria" fact and #)et)er t)e 2o3ing /art is entit"ed to 6udg2ent as a 2atter of "a#. F 4)e Co/rig)t C"ai2FB. ;ein and A;E c)a""enge t)e district court8s )o"ding t)at t)e engaged in co/rig)t infringe2ent of 0i/ton8s *oo$ and t)at t)eir asserted infringe2ent #as #i""fu".=G@>%c+%D+ a /"ainti, is entit"ed to en)anced statutor da2ages of u/ to ?<@@,@@@ u/on /roof t)at a defendant8s infringe2ent #as #i""fu". = 7nder <A 7.S.C. H='e &u*"ications 3. C)inato#n 4oda &u*"is)ing Enters., E>G !.Dd G@E, G<> %Dd Cir.<EE<+. =G@< et seI., &age 0 of /* reIuires /roof t)at %<+ t)e /"ainti, )ad a 3a"id co/rig)t in t)e #or$ a""eged" infringed and %D+ t)e defendant infringed t)e /"ainti,8s co/rig)t * co/ing /rotected e"e2ents of t)e /"ainti,8s #or$. =A successfu" c"ai2 of co/rig)t infringe2ent /ursuant to t)e Co/rig)t Act, <A 7.S.C. HF &rotecti*i"itF<. 4)e defendants argue t)at #)i"e 0i/ton8s *oo$ itse"f is /rotected, t)e 2ere co2/i"ation of t)e co""ecti3e nouns-#it)out t)e acco2/aning art#or$ and eL/"anator teLt-is not /rotecti*"e *ecause t)e ter2s are facts, and not t)e origina" #or$ of 0i/ton.=It is undis/uted t)at 0i/ton )as a 3a"id co/rig)t in t)e 5rst and second editions of )is *oo$, An ELa"tation of 0ar$s. A"t)oug) facts are considered to *e in t)e /u*"ic do2ain and t)erefore not /rotecti*"e under co/rig)t "a#, see !eist &u*"ications, Inc. 3. Rura" 4e". Ser3. Co., >EE 7.S. C>@, C>A, <<< S.Ct. <DBD, <DBB-BE, <<C 0.Ed.Dd CGB %<EE<+, a co2/i"ation of facts 2a *e /rotecti*"e in certain instances.F > 'e, E>G !.Dd at G<D %citing !eist, >EE 7.S. at CGA, <<< S.Ct. at <DEC-E>+.= 4)ree reIuire2ents 2ust *e 2et for a co2/i"ation to Iua"if as /rotecti*"e: 9%<+ t)e co""ection and asse2*" of /reeListing dataK %D+ t)e se"ection, coordination, or arrange2ent of t)at dataK and %C+ a resu"ting #or$ t)at is origina", * 3irtue of t)e se"ection, coordination, or arrange2ent of t)e data contained in t)e #or$.: = 4)e defendants dis/ute t)is 5nding, arguing t)at 0i/ton8s se"ection and arrange2ent do not de2onstrate t)e reIuisite origina"it.=AB< !.Su//. at <@C>. = 0i/ton8s arrange2ent of t)e ter2s #as origina" to )i2K )e did not fo""o# an sort of a"/)a*etica", c)rono"ogica", or ot)er sste2.: =4)e district court )e"d t)at t)e co2/i"ation of ter2s in 0i/ton8s *oo$ #as /rotecti*"e: 9O0i/tonP used )is $no#"edge and fa2i"iarit #it) t)e cu"ture of Midd"e Eng"is), as #e"" as )is o#n creati3it, in se"ecting t)e ter2s of 3ener t)at a//ear in An ELa"tation of 0ar$s. !urt)er2ore, t)e defendants o,er not)ing to contradict 0i/ton8s assertion t)at )e se"ected t)e ter2s 9*ased on O)isP su*6ecti3e, infor2ed and creati3e 6udg2ent.:= 4)e #ere se"ected fro2 nu2erous 3ariations of )undreds of a3ai"a*"e ter2s. = In co2/i"ing )is #or$, 0i/ton asse2*"ed ter2s fro2 3arious 5fteent) centur teLts and 2anuscri/ts. = A"t)oug) t)e defendants correct" assert t)at t)e ter2s t)e2se"3es are not origina", t)e uncontradicted e3idence is t)at 0i/ton8s se"ection and arrange2ent of t)e ter2s #ere origina". =!eist, >EE 7.S. at C>G, <<< S.Ct. at <DBA. =9Origina", as t)e ter2 is used in co/rig)t, 2eans on" t)at t)e #or$ #as inde/endent" created * t)e aut)or M and t)at it /ossesses at "east so2e 2ini2a" degree of creati3it.: =4)e a2ount of creati3it reIuired for co/rig)t /rotection of a co2/i"ation is decided" s2a"". F 4)e district court correct" found 0i/ton8s co2/i"ation to *e /rotecti*"e.= Because t)e defendants )a3e o,ered not)ing-a/art fro2 t)eir con6ecture t)at t)e "ist #as rando2-to contradict 0i/ton8s assertions t)at )is arrange2ent #as t)e /roduct of )is creati3e and aest)etic 6udg2ent, t)ere is no 2ateria" factua" dis/ute. ='e, E>G !.Dd at G<> %5nding arrange2ent of *usinesses in director to *e /rotecti*"e #)ere 9OtP)e arrange2ent is in no sense 2ec)anica": and 9entai"ed t)e de 2ini2is t)oug)t needed to #it)stand t)e origina"it reIuire2ent:+K cf. !eist, >EE 7.S. at CJC, <<< S.Ct. at <DEJ-EA %no co/rig)t /rotection #)ere na2es arranged a"/)a*etica"" in #)ite /ages directorK 9OtP)e se"ection and arrange2ent of facts cannot *e so 2ec)anica" or routine as to reIuire no creati3it #)atsoe3er.:+. = ;e )a3e )e"d t)at #)i"e 92ec)anica": arrange2ents, suc) as a"/)a*etica" or c)rono"ogica" order, do not dis/"a t)e reIuisite origina"it, an 2ini2a" "e3e" of creati3it is suTcient to render an arrange2ent /rotecti*"e. = 4)is argu2ent 2isconstrues go3erning case "a#. = Instead, t)e argue t)at *ecause 0i/ton8s arrange2ent does 9not fo""o# an sort of a"/)a*etica", c)rono"ogica", or ot)er sste2,: it is in)erent" un/rotecti*"e under co/rig)t "a#. = 4)e defendants do not c)a""enge 0i/ton8s state2ent t)at )is co2/i"ation does not re/"icate t)e seIuence of ter2s in an of t)e 5fteent) centur sources t)at )e consu"ted, nor do t)e contradict )is assertion t)at )e re/eated" rearranged t)e ter2s *ased u/on )is o#n aest)etic 6udg2ent. =0i/ton8s arrange2ent of t)e ter2s is si2i"ar" /rotecti*"e. Infringe2entFD. !erguson 3. NBC, Inc., GB> !.Dd <<<, <<C %Gt) Cir.<EAB+K Vaste 3. 'aiser2an, BJC !.Dd <@J<, <@JA-JB %Dd Cir.<EBB+ %sa2e+.= In t)e a"ternati3e, 9OiPf t)e t#o #or$s are so stri$ing" si2i"ar as to /rec"ude t)e /ossi*i"it of inde/endent creation, Sco/ingW 2a *e /ro3ed #it)out a s)o#ing of access.: =;a"$er 3. 4i2e 0ife !i"2s, Inc., AB> !.Dd >>, >B %Dd Cir.+, cert. denied, >AJ 7.S. <<GE, <@J S.Ct. DDAB, E@ 0.Ed.Dd AD< %<EBJ+. = Since direct e3idence of co/ing is se"do2 a3ai"a*"e, 9OcPo/ing 2a *e inferred #)ere a /"ainti, esta*"is)es t)at t)e defendant )ad access to t)e co/rig)ted #or$ and t)at su*stantia" si2i"arities eList as to /rotecti*"e 2ateria" in t)e t#o #or$s.: =4)e second /rong of a successfu" co/rig)t action reIuires /roof t)at t)e defendant co/ied /rotected e"e2ents of t)e /"ainti,8s #or$. F ;)i"e it is true t)at ;ein initia"" ga3e Nature and 0i/ton8s attorne a di,erent eL/"anation for t)e origin of )is= In so doing, t)e district court re6ected ;ein8s eL/"anation t)at )e co/ied )is "ist of ter2s fro2 t)e scarf as 9contradictor: and 9in)erent" incredi*"e.: =4)e court found ;ein and A;E "ia*"e for co/rig)t infringe2ent as a 2atter of "a# *ased on t)e 9o3er#)e"2ing si2i"arit of ;ein8s S/roductW to 0i/ton8s #or$.: F 4)us, ;ein8s /re-"itigation state2ents a*out t)e origin of )is "ist did not /er2it t)e court to disregard )is eL/"anation t)at )e co/ied t)e ter2s fro2 t)e scarf.= !or t)e /ur/oses of a su22ar 6udg2ent 2otion, courts are &age 1 of /* reIuired to 3ie# t)e facts in t)e "ig)t 2ost fa3ora*"e to t)e /arties o//osing t)e 2otion and to sus/end 6udg2ents on credi*i"it. = 4)is is corro*orated * t)e de/osition testi2on of )is art director, Mic)ae" Eng"is), and t)e fact t)at ;ein /roduced t)e scarf during disco3er. ="ist of ter2s, since t)e ince/tion of t)e suit, ;ein )as consistent" 2aintained t)at )e co/ied t)e ter2s direct" fro2 t)e scarf. See ..C. Co2ics Inc. 3. Mini Vift S)o/, E<D !.Dd DE, CG %Dd Cir.<EE@+K C Me"3i""e B. Ni22er= As a 2atter of "a#, 9innocent infringe2ent,: or co/ing fro2 a t)ird source #rongfu"" co/ied fro2 t)e /"ainti,, #it)out $no#"edge t)at t)e t)ird source #as infringing, does not a*so"3e a defendant of "ia*i"it for co/rig)t infringe2ent. =;ein8s co/ing of t)e scarf is in an e3ent no defense to a c"ai2 of infringe2ent. F ( 4)e inIuir t)en *eco2es #)et)er t)e scarf itse"f #as infringing-t)at is, #)et)er its 2anufacturer )ad access to 0i/ton8s #or$ and su*stantia" si2i"arities eList *et#een t)e scarf and 0i/ton8s co2/i"ation, or #)et)er t)e t#o #or$s are so stri$ing" si2i"ar as to /rec"ude t)e /ossi*i"it of inde/endent creation.= If ;ein and A;E did co/ t)e "ist of ter2s fro2 t)e scarf, t)at defense is una3ai"ing if t)e scarf itse"f #as an unaut)ori1ed co/ of 0i/ton8s /rotected co2/i"ation. =<C.@B, at <C-DBE %<EEG+K .o"ori !a*rics, Inc. 3. 4)e 0i2ited, Inc., JJD !.Su//. <C>A, <CG>-GG %S...N.Y.<EBA+ %0u2*ard, J., sitting * designation+ %5nding c"ot)ing retai"er "ia*"e for infringe2ent *ased on retai"er8s sa"e of dresses 2ade fro2 fa*ric t)at, un*e$no#nst to retai"er, infringed teLti"e con3erter8s co/rig)t+K see a"so !it1gera"d &u*"is)ing Co. 3. Ba"or &u*"is)ing Co., B@A !.Dd <<<@, <<<C %Dd Cir.<EBJ+ %9OIPntent or $no#"edge is not an e"e2ent of infringe2ent.:+. = .a3id Ni22er, Ni22er on Co/rig)t H See Ec$es 3. Card &rices 7/date, ACJ !.Dd BGE, BJC %Dd Cir.<EB>+ %9OCPourts )a3e regarded t)e eListence of co22on errors in t#o si2i"ar #or$s as t)e strongest e3idence of /irac.:+ %interna" Iuotation 2ar$s o2itted+.= A"t)oug) so2e of t)ose errors do eList in ot)er sources, t)e furt)er su//ort our conc"usion t)at t)e scarf cou"d not )a3e se"ected t)e sa2e ter2s inde/endent of 0i/ton8s *oo$. = !urt)er2ore, t)e scarf contains at "east siL trans"ation errors t)at eListed in 0i/ton8s 5rst t#o editions. = Indeed, t)e scarf inc"udes on" one ani2a" ter2-9co3e of Iuai":-t)at does not a//ear in t)e 0i/ton co2/i"ation. = Out of t)e AA di,erent ani2a" ter2s of 3ener t)at a//ear in t)e 5rst edition of An ELa"tation of 0ar$s, AD of t)e2 are "isted on t)e scarf. = In /rinci/"e, t)e scarf cou"d )a3e inc"uded an of t)e )undreds of ani2a" ter2s "isted in 3arious 5fteent) centur teLts and ot)er resources, *ut in fact, it 2i2ics t)e "ist in 0i/ton8s *oo$ a"2ost eLact". = !irst, t)e scarf inc"udes essentia"" t)e sa2e se"ection of ani2a"-re"ated ter2s as 0i/ton8s *oo$. = According", #e 5nd t)at scarf infringed on 0i/ton8s co/rig)t. =A co2/arison *et#een t)e se"ection and arrange2ent of ter2s in 0i/ton8s *oo$ and t)e se"ection and arrange2ent of t)ose on t)e scarf "eads us to conc"ude t)at t)e t#o are 9stri$ing" si2i"ar.: F In fact, t)e t)irteent) t)roug) t)e t#ent-5ft) ter2s on t)e scarf are "isted in /recise" t)e sa2e order as in t)e 5rst edition of An ELa"tation of 0ar$s.= Of t)e 5rst t#ent-53e ter2s on t)e scarf, t#ent-four are "isted in 0i/ton8s *oo$, and a"" *ut four of t)e2 are "isted in t)e sa2e order. = Second, t)e arrange2ent of ter2s on t)e scarf is a"so so stri$ing" si2i"ar to t)e arrange2ent in 0i/ton8s *oo$ as to /rec"ude an inference of inde/endent creation. G In "ig)t of t)e 2i""ions u/on 2i""ions of /ossi*"e arrange2ents,=In at "east four ot)er /"aces on t)e scarf a string of four or 2ore ter2s a//ears in t)e sa2e order as in 0i/ton8s *oo$. = J t)e scarf8s c"ose 2i2ic$ing of 0i/ton8s arrange2ent "eads ine3ita*" to a 5nding of i2/ro/er co/ing. ;e t)erefore aTr2 t)e district court8s order of su22ar 6udg2ent to 0i/ton on its co/rig)t c"ai2 against ;ein and A;E.= B co/ing t)e scarf- an unaut)ori1ed co/ t)at infringed on 0i/ton8s /rotected co2/i"ation- ;ein and A;E a"so infringed. =;ein fu"" ac$no#"edged t)at )e co/ied t)e scarf for use on t)e origina" ;ein /roducts, Nature8s Mu"titudes /roducts, and t)e Ani2a" Congregations "ine current" *eing distri*uted * ;ein t)roug) A;E. ;i""fu"nessFC. ;)en an o#ner esta*"is)es t)at t)e defendant8s infringe2ent #as 9= G@>%c+, a co/rig)t o#ner 2a e"ect to reco3er statutor da2ages in "ieu of actua" da2ages. = 7nder <A 7.S.C. H=4)e defendants a"so c)a""enge t)e district court8s 5nding t)at t)eir infringe2ent of 0i/ton8s co/rig)t #as #i""fu". N.A.S. I2/ort Cor/. 3. C)enson Enters., Inc., EJB !.Dd DG@, DGD %Dd Cir.<EED+.=G@>%c+%D+ #)ere t)e defendant )ad $no#"edge t)at its conduct constituted infringe2ent or s)o#ed rec$"ess disregard for t)e co/rig)t )o"der8s rig)ts. = ;e )a3e /re3ious" )e"d t)at a defendant8s co/rig)t infringe2ent #i"" *e found #i""fu" /ursuant to H=G@>%c+%D+. =<A 7.S.C. H= #i""fu",: t)e statute /er2its t)e court, at its discretion, to increase its a#ard of da2ages to a 2aLi2u2 of ?<@@,@@@. 4)e defendants argue t)at %<+ t)e issue of t)eir #i""fu" infringe2ent #as an inIuir into t)eir state of 2ind t)at 2ust *e decided * a 6ur-not * t)e court on su22ar 6udg2ent, and %D+ e3en if #i""fu"ness cou"d *e decided on su22ar 6udg2ent, t)e district court8s ru"ing #as in error *ecause it ignored ;ein8s c"ai2 t)at )e co/ied t)e ter2s fro2 t)e scarf.= On 0i/ton8s 2otion for su22ar 6udg2ent, t)e district court found ;ein and A;E to *e #i""fu" infringers, *asing its deter2ination on t)e fact t)at ;ein 9continua"" c)anged )is stor as to t)e origin of )is ter2s suc) t)at an good fait) /rotestations on )is /art are in)erent" incredi*"e.: ;e re2and for tria" on t)e Iuestion of ;ein8s #i""fu"ness or rec$"ess disregard of 0i/ton8s co/rig)t.=G@>%c+%D+. = According", #e re3erse t)e district court8s a#ard of su22ar 6udg2ent to 0i/ton on t)e Iuestion of #i""fu" infringe2ent and its a#ard of en)anced da2ages /ursuant to <A &age / of /* 7.S.C. H= 4)e district court erred in conc"uding, on a su22ar 6udg2ent 2otion, t)at ;ein #i""fu"" infringed 0i/ton8s co/rig)t *ased on its deter2ination t)at ;ein8s stor a*out t)e scarf #as 9in)erent" incredi*"e.: =7nited States 3. Re2, CB !.Cd JC>, J>C->> %Dd Cir.<EE>+. = .eter2inations of credi*i"it are #it)in t)e /ro3ince of t)e 6ur and 2a not *e reso"3ed on su22ar 6udg2ent. = ;ein dis/utes t)e assertion t)at )e #i""fu"" co/ied fro2 An ELa"tation of 0ar$s, arguing t)at )e innocent" co/ied fro2 t)e scarf #)at )e *e"ie3ed to *e an un/rotecta*"e co2/i"ation. = Ho#e3er, t)is is not suc) a case. = See Resource .e3e"o/ers, Inc. 3. Statue of 0i*ert-E""is Is"and !ound., Inc., EDJ !.Dd <C>, <>< %Dd Cir.<EE<+. =A"t)oug) courts are genera"" re"uctant to dis/ose of a case on su22ar 6udg2ent #)en 2enta" state is at issue, it is /er2issi*"e to do so #)ere t)ere are suTcient undis/uted 2ateria" facts on t)e record to 2a$e t)e Iuestion a//ro/riate for su22ar 6udg2ent. F 7nfair Co2/etition C"ai2s under t)e 0an)a2 ActFC. <<DG%a+%<+= Su*section %A+ of <G 7.S.C. H=<<DG%a+. =>C%a+ of t)e 0an)a2 Act, <G 7.S.C. H=4)e defendants a"so c)a""enge t)e district court8s a#ard of su22ar 6udg2ent to 0i/ton on )is unfair co2/etition c"ai2 under H A
0i/ton a""eges t)at t)e defendants engaged in t)e /ro)i*ited /ractice of 9re3erse /assing o,:-t)at is, )e c"ai2s t)at ;ein and A;E atte2/ted to se"" 0i/ton8s origina" co2/i"ation under ;ein8s o#n na2e, in 3io"ation of t)e 0an)a2 Act.=/ro)i*its an 2isre/resentation "i$e" to cause confusion as to t)e source or t)e 2anufacturer of a /roduct. ;a"d2an &u*"is)ing Cor/. 3. 0ando"", Inc., >C !.Cd AAG, AB<-BG %Dd Cir.<EE>+.=A successfu" c"ai2 for 9re3erse /assing o,: under t)e 0an)a2 Act reIuires t)at t)e /"ainti, /ro3e %<+ t)at t)e #or$ at issue originated #it) t)e /"ainti,K %D+ t)at origin of t)e #or$ #as fa"se" designated * t)e defendantK %C+ t)at t)e fa"se designation of origin #as "i$e" to cause consu2er confusionK and %>+ t)at t)e /"ainti, #as )ar2ed * t)e defendant8s fa"se designation of origin. F >C%a+ of t)e 0an)a2 Act.= ;e 5nd t)at, as a 2atter of "a#, a fa"se co/rig)t notice a"one cannot constitute a fa"se designation of origin #it)in t)e 2eaning of H=In t)e instant case, t)e district court *ased its 5nding of a 0an)a2 Act 3io"ation on t)e fact t)at t)e co/rig)t notices on t)e infringing /roducts #ere fa"se designations of origin. F A"t)oug) #e found a co/rig)t 3io"ation, #e re6ected 'regos8 0an)a2 Act c"ai2, )o"ding t)at 9OiPf 'regos is si2/" saing t)at t)e notice is fa"se in c"ai2ing creation * S/orts !eatures in t)at t)e for2 is, under t)e co/rig)t "a#, an infringe2ent of 'regos8 for2, #e r= A& /u*"is)ed t)e co/ied for2 #it) S/orts !eatures8 co/rig)t, in 3io"ation of 'regos8 /rotected interest in )is origina" for2. = 4)at case in3o"3ed a dis/ute o3er a for2 used to dis/"a *ase*a"" /itc)ing statistics created and distri*uted * t)e /"ainti,, 'regos, and co/ied and /u*"is)ed * t)e defendants, S/orts !eatures Sndicate, Inc. %9S/orts !eatures:+ and t)e Associated &ress %9A&:+. =In 'regos 3. Associated &ress, ECA !.Dd A@@, A<@-<< %Dd Cir.<EE<+, #e re6ected a /"ainti,8s atte2/t to turn its successfu" co/rig)t c"ai2 into a 0an)a2 Act c"ai2 for fa"se designation of origin. Because t)e district court *ased its 5nding of a fa"se designation of origin so"e" on t)e /resence of ;ein8s fa"se co/rig)t notice, #e re3erse t)e a#ard of su22ar 6udg2ent to 0i/ton on its 0an)a2 Act c"ai2.=Id. at A<<. =e6ect )is atte2/t to con3ert a"" co/rig)t c"ai2s into 0an)a2 Act 3io"ations.: >C%a+ "ia*i"it *ased on co/rig)t infringe2ent a"one: 9OtP)ere 2ust eList so2e aTr2ati3e act #)ere* Ot)e defendantP fa"se" re/resented itse"f as t)e o#nerM:+.=>C%a+ "ia*i"it #)ere co/rig)t notice on infringing /roduct #as not 2ere" fa"se, *ut a"so 2ade t)e additiona" re/resentation t)at t)e /roduct #as 9origina":+K Cognotec Ser3ices 0td. 3. Morgan Vuarant 4rust Co., BJD !.Su//. >G, G< %S...N.Y.<EE>+ %5nding no H= 'regos, ECA !.Dd at A<@K see a"so Eden 4os, Inc. 3. !"ore"ee 7ndergar2ent Co., JEA !.Dd DA, CA %Dd Cir.<EBD+ %5nding H= Indeed, t)is /ossi*i"it is "eft o/en * 'regos itse"f, in #)ic) C)ief Judge Ne#2an noted t)at, a"t)oug) a fa"se co/rig)t a"one #ou"d *e insuTcient as a fa"se designation of origin, 9'regos cou"d co2/"ain M if S/orts !eatures unfair" co2/eted #it) )i2 * fa"se" c"ai2ing t)at its for2 #as originated * so2e #e""-$no#n *ase*a"" /"aer.: = ;a"d2an, >C !.Cd at AB<. = In ;a"d2an, #e found t)at t)e 9re/roduction of a #or$ #it) a fa"se re/resentation as to its creator: cou"d su//ort a 5nding of fa"se designation origin #)ere t)e defendant fai"ed to credit t)e origina" creator. = ;e 2ere" )o"d t)at t)e eListence of a fa"se co/rig)t notice a"one is insuTcient. =In doing so, #e o,er no o/inion as to #)et)er or not t)ere 2ig)t *e ot)er grounds to su//ort a 0an)a2 Act c"ai2 *ased on fa"se designation of origin. <<DG%a+%<+%B+.=0i/ton counters t)at e3en if )is fa"se designation of origin c"ai2 fai"s, )e is entit"ed to su22ar 6udg2ent on )is c"ai2 for fa"se ad3ertising /ursuant to <G 7.S.C. HF B See Castro" Inc. 3. &enn1oi" Co., EBA !.Dd ECE, E>G %Cd Cir.<EEC+.= Second, ;ein8s genera" assertions t)at )e conducted t)oroug) researc) in co2/i"ing )is "ist of ter2s is 2ere 9/uTng: and does not constitute fa"se ad3ertising. = !irst, t)e state2ents in Nature8s cata"og are irre"e3ant, inas2uc) as 0i/ton o,ers no e3idence t)at t)ese state2ents originated #it) ;ein and Nature is not a /art to t)is a//ea". = ;e 5nd t)at neit)er state2ent su//orts a fa"se ad3ertising c"ai2 against ;ein or A;E. =He argues t)at t)e state2ents 2ade in t)e Nature cata"og co/ %t)at ;ein researc)ed t)e Eng"is) "anguage to its ear"iest roots+, and in A;E8s Ani2a" Congregations /ro2otiona" *roc)ure %t)at )e 9t)oroug)" researc)ed do1ens and do1ens of ani2a"s:+ #ere fa"se, 2ateria", and 2is"eading. = 4)us, #e re3erse t)e district court8s su22ar 6udg2ent on 0i/ton8s 0an)a2 Act c"ai2s.= Vroden 3. Rando2 House, Inc., No. E> Ci3. <@A>, <EE> ;0 >GGGGG, at XG %S...N.Y. Aug. DC, <EE>+, a,8d, J< !.Cd <@>G %Dd Cir.<EEG+K see Bose Cor/. 3. 0inear .esign 0a*s, Inc., >JA !.Dd C@>, C<@-<< &age , of /* %Dd Cir.<EAD+ %5nding defendant8s c"ai2 t)at its 9count"ess )ours of researc): "ed to t)e su/erior Iua"it of its stereo s/ea$ers to *e "arge" /uTng+. =9Su*6ecti3e c"ai2s a*out /roducts, #)ic) cannot *e /ro3en eit)er true or fa"se, are not actiona*"e under t)e 0an)a2 Act.: = !urt)er2ore, ;ein8s genera" assertion t)at t)e researc) )e conducted #as 9t)oroug)OP: is 2ere 9/uTng: and t)erefore, not actiona*"e. = 0i/ton )as o,ered not)ing to contradict ;ein8s assertion t)at )e conducted inde/endent researc) at t)e Ne# Yor$ &u*"ic 0i*rar /rior to ad3ertising t)e Ani2a" Congregations "ine. =McNei"-&.C.C., Inc. 3. Bristo"-Mers SIui** Co., ECB !.Dd <G>>, <G>E %Dd Cir.<EE<+. = !a"sit 2a *e esta*"is)ed * /ro3ing t)at %<+ t)e ad3ertising is "itera"" fa"se as a factua" 2atter, or %D+ a"t)oug) t)e ad3ertise2ent is "itera"" true, it is "i$e" to decei3e or confuse consu2ers. =>C%a+ t)e /"ainti, 2ust de2onstrate t)at t)e 2essage in t)e c)a""enged ad3ertise2ent is fa"se. =4o esta*"is) a fa"se ad3ertising c"ai2 /ursuant to HF 4)e In6unctionF.. As /art of an acco2/aning 2e2orandu2-intended as an a2end2ent to t)e order and 6udg2ent-t)e district court eL/ounded u/on t)e sco/e of t)e in6unction:=As /art of its order and 6udg2ent entered Octo*er <>, <EE>, t)e district court issued a /er2anent in6unction /ro)i*iting ;ein and A;E fro2 co/ing, /roducing, or se""ing an infringing /roducts or 9an ot)er /roducts su*stantia"" si2i"ar to t)e said infringing /roducts andYor incor/orating, in #)o"e or in /art, /"ainti,8s co/rig)ted and in)erent" distincti3e co2/i"ation.: F 4)erefore, I 5nd t)at defendant ;ein and OA;EP s)ou"d *e en6oined fro2 an use of /"ainti,8s ter2s, toget)er or se/arate"M=;ein can )ard" *e /er2itted to 2ar$et t)e /arts, )a3ing *een found to )a3e 2isa//ro/riated t)e #)o"e. =In t)is case, #e )a3e a defendant #)o M #as #rongfu"" co/ing 3irtua"" /"ainti,8s entire co2/i"ation, OandP is no# current" 2ar$eting 4-s)irts and ot)er /roducts using *ut sing"e ter2s co/ied fro2 O/"ainti,8s *oo$PM C Ni22er= 4)is /)rase )as *een inter/reted to 2ean t)at a court8s aut)orit to issue an in6unction in a co/rig)t case s)ou"d *e "i2ited in sco/e to t)at /art of t)e #or$ t)at is /rotecti*"e. =G@D, a /er2anent in6unction 2a issue on suc) ter2s as t)e court dee2s 9reasona*"e to /re3ent or restrain infringe2ent of a co/rig)t.: =&ursuant to <A 7.S.C. H ( According", #e re2and #it) instructions to a2end t)e in6unction, and for suc) furt)er /roceedings as 2a *e a//ro/riate in t)e circu2stances, inc"uding t)e a#ard of costs and attornes8 fees #it) res/ect to t)e co/rig)t c"ai2.= B so )o"ding, )o#e3er, #e do not forec"ose t)e /ossi*i"it t)at an in6unction 2ig)t *e a//ro/riate to /ro)i*it ;ein fro2 /roducing or 2ar$eting a 2ore eLtensi3e "ine of /roducts t)at infringes 0i/ton8s se"ection of ter2s. = 4)us, t)e district court erred in en6oining ;ein fro2 /roducing and 2ar$eting a "ine of siL di,erent 4-s)irts and 2ugs, eac) dis/"aing a di,erent ani2a" ter2 of 3ener. = In t)e instant case, it is t)e co2/i"ation-i.e., t)e se"ection and arrange2ent-of t)e ter2s t)at is /rotecti*"e, not t)e indi3idua" ter2s t)e2se"3es. = Because su22ar 6udg2ent #as /ro/er so"e" on t)e /"ainti,8s co/rig)t cause of action, #e 5nd t)e district court8s in6unction to *e eLcessi3e" *road. = <>.@JOCP, at <>-<@E %94)e sco/e of t)e in6unction t)erefore, s)ou"d genera"" *e no *roader t)an t)e infringe2ent, and *ecause facts M are ne3er co/rig)ta*"e, no in6unction s)ou"d eLtend to for*id re/roduction of t)ose factsM: %citing Ja2es 0. Oa$es, Co/rig)ts and Co/re2edies: 7nfair 7se and In6unctions, CB J. Co/rig)t Soc8 JC, A<-B< %<EE@+++K see 'e/ner- 4regoe, Inc. 3. 0eaders)i/ Soft#are, Inc., <D !.Cd GDA, GCB %Gt) Cir.+ %#)ere district court found defendant "ia*"e for co/rig)t infringe2ent of co2/uter /rogra2, it "ac$ed t)e aut)orit to generica"" en6oin t)e defendant fro2 a"" future 2odi5cations of t)e /rogra2 at issue+, cert. denied, G<C 7.S. BD@, <<G S.Ct. BD, <C@ 0.Ed.Dd CG %<EE>+. =Ni22er, Ni22er on Co/rig)t H Conc"usionFIII. 4o su22ari1e: ;e aTr2 t)e district court8s 5nding t)at /"ainti,8s co""ection of ani2a" ter2s #as a /rotecti*"e co2/i"ation * 3irtue of its origina" se"ection and arrange2ent of t)ose ter2s.F<. ;e aTr2 t)e grant of su22ar 6udg2ent on t)e /"ainti,8s co/rig)t c"ai2 *ased on t)e defendants8 ad2itted co/ing fro2 an unaut)ori1ed and infringing source.FD. G@>%c+%D+.=;e re3erse t)e a#ard * su22ar 6udg2ent of en)anced statutor da2ages /ursuant to <A 7.S.C. HFC. <<DG 2a not *e *ased so"e" on t)e /resence of a fa"se co/rig)t notice, and %*+ t)e defendants8 re/resentations a*out t)e eLtent of t)eir researc) #ere 2ere" 9/uTng: and did not constitute fa"se ad3ertising #it)in t)e 2eaning of t)e 0an)a2 Act.=;e re3erse t)e grant of su22ar 6udg2ent on t)e /"ainti,8s 0an)a2 Act c"ai2s on t)e grounds t)at %a+ a c"ai2 for fa"se designation of origin /ursuant to <G 7.S.C. HF>. ;e re2and t)e cause to t)e district court for an a//ro/riate a2end2ent of t)e o3er*road in6unction, for tria" on t)e Iuestion of t)e defendants8 #i""fu"ness or rec$"ess disregard of 0i/ton8s co/rig)t, and for suc) furt)er /roceedings as 2a *e dee2ed a//ro/riate in "ig)t of t)is o/inion.FG. 4.#. No. */+000 Au3ust *,, 0551 &age 6 of /* P$A#L 7 $AN 8P9IL.:, INCO#PO#AT$, &etitioner, 3s. S9O$%A#T, INCO#PO#AT$, and NO#T9 $SA %A#;$TIN4, INCO#PO#AT$, Res/ondents. . E C I S I O N CO#ONA, J.: In t)e instant /etition for re3ie# on certiorari under Ru"e >G of t)e Ru"es of Court, /etitioner &ear" ( .ean %&)i".+ Inc. %& ( .+ assai"s t)e Ma DD, D@@< decision < of t)e Court of A//ea"s re3ersing t)e Octo*er C<, <EEJ decision D of t)e Regiona" 4ria" Court of Ma$ati, Branc) <CC, in Ci3i" Case No. ED-G<J #)ic) dec"ared /ri3ate res/ondents S)oe2art Inc. %SMI+ and Nort) Edsa Mar$eting Inc. %NEMI+ "ia*"e for infringe2ent of trade2ar$ and co/rig)t, and unfair co2/etition. !AC47A0 AN4ECE.EN4S 4)e Ma DD, D@@< decision of t)e Court of A//ea"s C contained a su22ar of t)is dis/ute: Z&"ainti,-a//e""ant &ear" and .ean %&)i".+, Inc. is a cor/oration engaged in t)e 2anufacture of ad3ertising dis/"a units si2/" referred to as "ig)t *oLes. 4)ese units uti"i1e s/ecia"" /rinted /osters sand#ic)ed *et#een /"astic s)eets and i""u2inated #it) *ac$ "ig)ts. &ear" and .ean #as a*"e to secure a Certi5cate of Co/rig)t Registration dated Januar D@, <EB< o3er t)ese i""u2inated dis/"a units. 4)e ad3ertising "ig)t *oLes #ere 2ar$eted under t)e trade2ar$ Z&oster AdsZ. 4)e a//"ication for registration of t)e trade2ar$ #as 5"ed #it) t)e Bureau of &atents, 4rade2ar$s and 4ec)no"og 4ransfer on June D@, <EBC, *ut #as a//ro3ed on" on Se/te2*er <D, <EBB, /er Registration No. ><<JG. !ro2 <EB< to a*out <EBB, &ear" and .ean e2/"oed t)e ser3ices of Metro Industria" Ser3ices to 2anufacture its ad3ertising dis/"as. So2eti2e in <EBG, &ear" and .ean negotiated #it) defendant- a//e""ant S)oe2art, Inc. %SMI+ for t)e "ease and insta""ation of t)e "ig)t *oLes in SM Cit Nort) Edsa. Since SM Cit Nort) Edsa #as under construction at t)at ti2e, SMI o,ered as an a"ternati3e, SM Ma$ati and SM Cu*ao, to #)ic) &ear" and .ean agreed. On Se/te2*er <<, <EBG, &ear" and .eanWs Venera" Manager, Rodo"fo [ergara, su*2itted for signature t)e contracts co3ering SM Cu*ao and SM Ma$ati to SMIWs Ad3ertising &ro2otions and &u*"icit .i3ision Manager, Ra2on"ito A*ano. On" t)e contract for SM Ma$ati, )o#e3er, #as returned signed. On Octo*er >, <EBG, [ergara #rote A*ano inIuiring a*out t)e ot)er contract and re2inding )i2 t)at t)eir agree2ent for insta""ation of "ig)t *oLes #as not on" for its SM Ma$ati *ranc), *ut a"so for SM Cu*ao. SMI did not *ot)er to re/". Instead, in a "etter dated Januar <>, <EBJ, SMIWs )ouse counse" infor2ed &ear" and .ean t)at it #as rescinding t)e contract for SM Ma$ati due to non-/erfor2ance of t)e ter2s t)ereof. In )is re/" dated !e*ruar <A, <EBJ, [ergara /rotested t)e uni"atera" action of SMI, saing it #as #it)out *asis. In t)e sa2e "etter, )e /us)ed for t)e signing of t)e contract for SM Cu*ao. 4#o ears "ater, Metro Industria" Ser3ices, t)e co2/an for2er" contracted * &ear" and .ean to fa*ricate its dis/"a units, o,ered to construct "ig)t *oLes for S)oe2artWs c)ain of stores. SMI a//ro3ed t)e /ro/osa" and ten %<@+ "ig)t *oLes #ere su*seIuent" fa*ricated * Metro Industria" for SMI. After its contract #it) Metro Industria" #as ter2inated, SMI engaged t)e ser3ices of EY. Rain*o# Ad3ertising Cor/oration to 2a$e t)e "ig)t *oLes. So2e C@@ units #ere fa*ricated in <EE<. 4)ese #ere de"i3ered on a staggered *asis and insta""ed at SM Mega2a"" and SM Cit. So2eti2e in <EBE, &ear" and .ean, recei3ed re/orts t)at eLact co/ies of its "ig)t *oLes #ere insta""ed at SM Cit and in t)e fastfood section of SM Cu*ao. 7/on in3estigation, &ear" and .ean found out t)at aside fro2 t)e t#o %D+ re/orted SM *ranc)es, "ig)t *oLes si2i"ar to t)ose it 2anufactures #ere a"so insta""ed in t#o %D+ ot)er SM stores. It furt)er disco3ered t)at defendant-a//e""ant Nort) Edsa Mar$eting Inc. %NEMI+, t)roug) its 2ar$eting ar2, &ri2e S/ots Mar$eting Ser3ices, #as set u/ /ri2ari" to se"" ad3ertising s/ace in "ig)ted dis/"a units "ocated in SMIWs di,erent *ranc)es. &ear" and .ean noted t)at NEMI is a sister co2/an of SMI. In t)e "ig)t of its disco3eries, &ear" and .ean sent a "etter dated .ece2*er <<, <EE< to *ot) SMI and NEMI en6oining t)e2 to cease using t)e su*6ect "ig)t *oLes and to re2o3e t)e sa2e fro2 SMIWs esta*"is)2ents. It a"so de2anded t)e discontinued use of t)e trade2ar$ Z&oster Ads,Z and t)e /a2ent to &ear" and .ean of co2/ensator da2ages in t)e a2ount of 4#ent Mi""ion &esos %&D@,@@@,@@@.@@+. 7/on recei/t of t)e de2and "etter, SMI sus/ended t)e "easing of t#o )undred t#ent-four %DD>+ "ig)t *oLes and NEMI too$ do#n its ad3ertise2ents for Z&oster AdsZ fro2 t)e "ig)ted dis/"a units in SMIWs stores. C"ai2ing t)at *ot) SMI and NEMI fai"ed to 2eet a"" its de2ands, &ear" and .ean 5"ed t)is instant case for infringe2ent of trade2ar$ and co/rig)t, unfair co2/etition and da2ages. &age < of /* In dening t)e c)arges )ur"ed against it, SMI 2aintained t)at it inde/endent" de3e"o/ed its /oster /ane"s using co22on" $no#n tec)niIues and a3ai"a*"e tec)no"og, #it)out notice of or reference to &ear" and .eanWs co/rig)t. SMI noted t)at t)e registration of t)e 2ar$ Z&oster AdsZ #as on" for stationeries suc) as "etter)eads, en3e"o/es, and t)e "i$e. Besides, according to SMI, t)e #ord Z&oster AdsZ is a generic ter2 #)ic) cannot *e a//ro/riated as a trade2ar$, and, as suc), registration of suc) 2ar$ is in3a"id. It a"so stressed t)at &ear" and .ean is not entit"ed to t)e re"iefs /raed for in its co2/"aint since its ad3ertising dis/"a units contained no co/rig)t notice, in 3io"ation of Section DA of &... >E. SMI a""eged t)at &ear" and .ean )ad no cause of action against it and t)at t)e suit #as /ure" intended to 2a"ign SMIWs good na2e. On t)is *asis, SMI, aside fro2 /raing for t)e dis2issa" of t)e case, a"so counterc"ai2ed for 2ora", actua" and eLe2/"ar da2ages and for t)e cance""ation of &ear" and .eanWs Certi5cation of Co/rig)t Registration No. &.-R-DGGB dated Januar D@, <EB< and Certi5cate of 4rade2ar$ Registration No. ><JG dated Se/te2*er <D, <EBB. NEMI, for its /art, denied )a3ing 2anufactured, insta""ed or used an ad3ertising dis/"a units, nor )a3ing engaged in t)e *usiness of ad3ertising. It re/"eaded SMIWs a3er2ents, ad2issions and denia"s and /raed for si2i"ar re"iefs and counterc"ai2s as SMI.Z 4)e R4C of Ma$ati Cit decided in fa3or of & ( .: ;)erefore, defendants SMI and NEMI are found 6oint" and se3era"" "ia*"e for infringe2ent of co/rig)t under Section D of &. >E, as a2ended, and infringe2ent of trade2ar$ under Section DD of RA No. <JJ, as a2ended, and are )ere* /ena"i1ed under Section DB of &. >E, as a2ended, and Sections DC and D> of RA <JJ, as a2ended. According", defendants are )ere* directed: %<+ to /a /"ainti, t)e fo""o#ing da2ages: %a+ actua" da2ages - &<J,J@@,@@@.@@, re/resenting /ro5ts deri3ed * defendants as a resu"t of infringe- 2ent of /"ainti,Ws co/rig)t fro2 <EE< to <EED %*+ 2ora" da2ages - &<,@@@.@@@.@@ %c+ eLe2/"ar da2ages - &<,@@@,@@@.@@ %d+ attorneWs fees - &<,@@@,@@@.@@ /"us %e+ costs of suitK %D+ to de"i3er, under oat), for i2/ounding in t)e Nationa" 0i*rar, a"" "ig)t *oLes of SMI #)ic) #ere fa*ricated * Metro Industria" Ser3ices and EY. Rain*o# Ad3ertising Cor/orationK %C+ to de"i3er, under oat), to t)e Nationa" 0i*rar, a"" 5""er- /osters using t)e trade2ar$ Z&oster AdsZ, for destructionK and %>+ to /er2anent" refrain fro2 infringing t)e co/rig)t on /"ainti,Ws "ig)t *oLes and its trade2ar$ Z&oster AdsZ. .efendantsW counterc"ai2s are )ere* ordered dis2issed for "ac$ of 2erit. SO OR.ERE.. > On a//ea", )o#e3er, t)e Court of A//ea"s re3ersed t)e tria" court: Since t)e "ig)t *oLes cannot, * an stretc) of t)e i2agination, *e considered as eit)er /rints, /ictoria" i""ustrations, ad3ertising co/ies, "a*e"s, tags or *oL #ra/s, to *e /ro/er" c"assi5ed as a co/rig)ta*"e c"ass ZOZ #or$, #e )a3e to agree #it) SMI #)en it /osited t)at #)at #as co/rig)ted #ere t)e tec)nica" dra#ings on", and not t)e "ig)t *oLes t)e2se"3es, t)us: >D. ;)en a dra#ing is tec)nica" and de/icts a uti"itarian o*6ect, a co/rig)t o3er t)e dra#ings "i$e /"ainti,-a//e""antWs #i"" not eLtend to t)e actua" o*6ect. It )as so *een )e"d under 6uris/rudence, of #)ic) t)e "eading case is Ba$er 3s. Se"den %<@< 7.S. B>< %<BAE+. In t)at case, Se"den )ad o*tained a co/rig)t /rotection for a *oo$ entit"ed ZSe"denWs Condensed 0edger or Boo$$ee/ing Si2/"i5edZ #)ic) /ur/orted to eL/"ain a ne# sste2 of *oo$$ee/ing. Inc"uded as /art of t)e *oo$ #ere *"an$ for2s and i""ustrations consisting of ru"ed "ines and )eadings, s/ecia"" designed for use in connection #it) t)e sste2 eL/"ained in t)e #or$. 4)ese for2s s)o#ed t)e entire o/eration of a da or a #ee$ or a 2ont) on a sing"e /age, or on t#o /ages fo""o#ing eac) ot)er. 4)e defendant Ba$er t)en /roduced for2s #)ic) #ere si2i"ar to t)e for2s i""ustrated in Se"denWs co/rig)ted *oo$s. 4)e Court )e"d t)at eLc"usi3it to t)e actua" for2s is not eLtended * a co/rig)t. 4)e reason #as t)at Zto grant a 2ono/o" in &age + of /* t)e under"ing art #)en no eLa2ination of its no3e"t )as e3er *een 2ade #ou"d *e a sur/rise and a fraud u/on t)e /u*"icK t)at is t)e /ro3ince of "etters /atent, not of co/rig)t.Z And t)at is /recise" t)e /oint. No dou*t a#are t)at its a""eged origina" design #ou"d ne3er /ass t)e rigorous eLa2ination of a /atent a//"ication, /"ainti,- a//e""ant foug)t to foist a fraudu"ent 2ono/o" on t)e /u*"ic * con3enient" resorting to a co/rig)t registration #)ic) 2ere" e2/"os a recorda" sste2 #it)out t)e *ene5t of an in-de/t) eLa2ination of no3e"t. 4)e /rinci/"e in Baker vs. Selden #as "i$e#ise a//"ied in Muller vs. Triborough Bridge Authority O>C !. Su//. DEB %S...N.Y. <E>D+P. In t)is case, Mu""er )ad o*tained a co/rig)t o3er an un/u*"is)ed dra#ing entit"ed ZBridge A//roac) \ t)e dra#ing s)o#ed a no3e" *ridge a//roac) to unsnar" traTc congestionZ. 4)e defendant constructed a *ridge a//roac) #)ic) #as a""eged to *e an infringe2ent of t)e ne# design i""ustrated in /"ainti,Ws dra#ings. In t)is case it #as )e"d t)at /rotection of t)e dra#ing does not eLtend to t)e unaut)ori1ed du/"ication of t)e o*6ect dra#n *ecause co/rig)t eLtends on" to t)e descri/tion or eL/ression of t)e o*6ect and not to t)e o*6ect itse"f. It does not /re3ent one fro2 using t)e dra#ings to construct t)e o*6ect /ortraed in t)e dra#ing. In t#o ot)er cases, Imperial Homes Corp. v. Lamont, >GB !. Dd BEG and Scholt Homes! Inc. v. Maddo", CAE !. Dd B>, it #as )e"d t)at t)ere is no co/rig)t infringe2ent #)en one #)o, #it)out *eing aut)ori1ed, uses a co/rig)ted arc)itectura" /"an to construct a structure. 4)is is *ecause t)e co/rig)t does not eLtend to t)e structures t)e2se"3es. In 5ne, #e cannot 5nd SMI "ia*"e for infringing &ear" and .eanWs co/rig)t o3er t)e tec)nica" dra#ings of t)e "atterWs ad3ertising dis/"a units. LLL LLL LLL 4)e Su/re2e Court trenc)ant" )e"d in #aberge! Incorporated vs. Intermediate Appellate Court t)at t)e /rotecti3e 2ant"e of t)e 4rade2ar$ 0a# eLtends on" to t)e goods used * t)e 5rst user as s/eci5ed in t)e certi5cate of registration, fo""o#ing t)e c"ear 2andate con3eed * Section D@ of Re/u*"ic Act <JJ, as a2ended, ot)er#ise $no#n as t)e 4rade2ar$ 0a#, #)ic) reads: SEC. D@. Certi$cation o% registration prima %acie evidence o% validity.- A certi5cate of registration of a 2ar$ or trade-na2e s)a"" *e prima %acie e3idence of t)e 3a"idit of t)e registration, t)e registrantWs o#ners)i/ of t)e 2ar$ or trade-na2e, and of t)e registrantWs eLc"usi3e rig)t to use t)e sa2e in connection #it) t)e goods, *usiness or ser3ices s/eci5ed in t)e certi5cate, su*6ect to an conditions and "i2itations stated t)erein.Z %underscoring supplied+ 4)e records s)o# t)at on June D@, <EBC, &ear" and .ean a//"ied for t)e registration of t)e trade2ar$ Z&oster AdsZ #it) t)e Bureau of &atents, 4rade2ar$s, and 4ec)no"og 4ransfer. Said trade2ar$ #as recorded in t)e &rinci/a" Register on Se/te2*er <D, <EBB under Registration No. ><<JG co3ering t)e fo""o#ing /roducts: stationeries suc) as "etter)eads, en3e"o/es and ca""ing cards and ne#s"etters. ;it) t)is as factua" *ac$dro/, #e see no "ega" *asis to t)e 5nding of "ia*i"it on t)e /art of t)e defendants-a//e""ants for t)eir use of t)e #ords Z&oster AdsZ, in t)e ad3ertising dis/"a units in suit. Juris/rudence )as inter/reted Section D@ of t)e 4rade2ar$ 0a# as Zan i2/"icit /er2ission to a 2anufacturer to 3enture into t)e /roduction of goods and a""o# t)at /roducer to a//ro/riate t)e *rand na2e of t)e senior registrant on goods ot)er t)an t)ose stated in t)e certi5cate of registration.Z 4)e Su/re2e Court furt)er e2/)asi1ed t)e restricti3e 2eaning of Section D@ #)en it stated, t)roug) Justice Conrado [. Sanc)e1, t)at: Rea"", if t)e certi5cate of registration #ere to *e dee2ed as inc"uding goods not s/eci5ed t)erein, t)en a situation 2a arise #)ere* an a//"icant 2a *e te2/ted to register a trade2ar$ on an and a"" goods #)ic) )is 2ind 2a concei3e e3en if )e )ad ne3er intended to use t)e trade2ar$ for t)e said goods. ;e *e"ie3e t)at suc) o2ni*us registration is not conte2/"ated * our 4rade2ar$ 0a#. ;)i"e #e do not discount t)e stri$ing si2i"arit *et#een &ear" and .eanWs registered trade2ar$ and defendants-a//e""antsW Z&oster AdsZ design, as #e"" as t)e /ara""e" use * #)ic) said #ords #ere used in t)e /artiesW res/ecti3e ad3ertising co/ies, #e cannot 5nd defendants- a//e""ants "ia*"e for infringe2ent of trade2ar$. Z&oster AdsZ #as registered * &ear" and .ean for s/eci5c use in its stationeries, in contrast to defendants-a//e""ants #)o used t)e sa2e #ords in t)eir ad3ertising dis/"a units. ;) &ear" and .ean "i2ited t)e use of its trade2ar$ to stationeries is si2/" *eond us. But, )a3ing a"read done so, it 2ust stand * t)e conseIuence of t)e registration #)ic) it )ad caused. LLL LLL LLL ;e are constrained to ado/t t)e 3ie# of defendants-a//e""ants t)at t)e #ords Z&oster AdsZ are a si2/"e contraction of t)e generic ter2 /oster ad3ertising. In t)e a*sence of an con3incing /roof t)at Z&oster &age . of /* AdsZ )as acIuired a secondar 2eaning in t)is 6urisdiction, #e 5nd t)at &ear" and .eanWs eLc"usi3e rig)t to t)e use of Z&oster AdsZ is "i2ited to #)at is #ritten in its certi5cate of registration, na2e", stationeries. .efendants-a//e""ants cannot t)us *e )e"d "ia*"e for infringe2ent of t)e trade2ar$ Z&oster AdsZ. 4)ere *eing no 5nding of eit)er co/rig)t or trade2ar$ infringe2ent on t)e /art of SMI and NEMI, t)e 2onetar a#ard granted * t)e "o#er court to &ear" and .ean )as no "eg to stand on. LLL LLL LLL ;HERE!ORE, /re2ises considered, t)e assai"ed decision is RE[ERSE. and SE4 ASI.E, and anot)er is rendered .ISMISSINV t)e co2/"aint and counterc"ai2s in t)e a*o3e-entit"ed case for "ac$ of 2erit. G .issatis5ed #it) t)e a*o3e decision, /etitioner & ( . 5"ed t)e instant /etition assigning t)e fo""o#ing errors for t)e CourtWs consideration: A. 4HE HONORAB0E CO7R4 O! A&&EA0S ERRE. IN R70INV 4HA4 NO CO&YRIVH4 IN!RINVEMEN4 ;AS COMMI44E. BY RES&ON.EN4S SM AN. NEMIK B. 4HE HONORAB0E CO7R4 O! A&&EA0S ERRE. IN R70INV 4HA4 NO IN!RINVEMEN4 O! &EAR0 ( .EANWS 4RA.EMAR' Z&OS4ER A.SZ ;AS COMMI44E. BY RES&ON.EN4S SM AN. NEMIK C. 4HE HONORAB0E CO7R4 O! A&&EA0S ERRE. IN .ISMISSINV 4HE A;AR. O! 4HE 4RIA0 CO7R4, .ES&I4E 4HE 0A44ERWS !IN.INV, NO4 .IS&74E. BY 4HE HONORAB0E CO7R4 O! A&&EA0S, 4HA4 SM ;AS V7I04Y O! BA. !AI4H IN I4S NEVO4IA4ION O! A.[ER4ISINV CON4RAC4S ;I4H &EAR0 ( .EAN. .. 4HE HONORAB0E CO7R4 O! A&&EA0S ERRE. IN NO4 HO0.INV RES&ON.EN4S SM AN. NEMI 0IAB0E 4O &EAR0 ( .EAN !OR AC47A0, MORA0 ( E]EM&0ARY .AMAVES, A44ORNEYWS !EES AN. COS4S O! S7I4. J ISS7ES In reso"3ing t)is 3er interesting case, #e are c)a""enged once again to /ut into /ro/er /ers/ecti3e four 2ain concerns of inte""ectua" /ro/ert "a# ^ /atents, co/rig)ts, trade2ar$s and unfair co2/etition arising fro2 infringe2ent of an of t)e 5rst t)ree. ;e s)a"" focus t)en on t)e fo""o#ing issues: %<+ if t)e engineering or tec)nica" dra#ings of an ad3ertising dis/"a unit %"ig)t *oL+ are granted co/rig)t /rotection %co/rig)t certi5cate of registration+ * t)e Nationa" 0i*rar, is t)e "ig)t *oL de/icted in suc) engineering dra#ings i/so facto a"so /rotected * suc) co/rig)t_ %D+ or s)ou"d t)e "ig)t *oL *e registered se/arate" and /rotected * a /atent issued * t)e Bureau of &atents 4rade2ar$s and 4ec)no"og 4ransfer %no# Inte""ectua" &ro/ert OTce+ ^ in addition to t)e co/rig)t of t)e engineering dra#ings_ %C+ can t)e o#ner of a registered trade2ar$ "ega"" /re3ent ot)ers fro2 using suc) trade2ar$ if it is a 2ere a**re3iation of a ter2 descri/ti3e of )is goods, ser3ices or *usiness_ ON 4HE ISS7E O! CO&YRIVH4 IN!RINVEMEN4 &etitioner & ( .Ws co2/"aint #as t)at SMI infringed on its co/rig)t o3er t)e "ig)t *oLes #)en SMI )ad t)e units 2anufactured * Metro and EY. Rain*o# Ad3ertising for its o#n account. O*3ious", /etitionerWs /osition #as /re2ised on its *e"ief t)at its co/rig)t o3er t)e engineering dra#ings eLtended ipso %acto to t)e "ig)t *oLes de/icted or i""ustrated in said dra#ings. In ru"ing t)at t)ere #as no co/rig)t infringe2ent, t)e Court of A//ea"s )e"d t)at t)e co/rig)t #as "i2ited to t)e dra#ings a"one and not to t)e "ig)t *oL itse"f. ;e agree #it) t)e a//e""ate court. !irst, /etitionerWs a//"ication for a co/rig)t certi5cate ^ as #e"" as Co/rig)t Certi5cate No. &.-RDGBB issued * t)e Nationa" 0i*rar on Januar D@, <EB< ^ c"ear" stated t)at it #as for a c"ass ZOZ #or$ under Section D %O+ of &. >E %4)e Inte""ectua" &ro/ert .ecree+ #)ic) #as t)e statute t)en /re3ai"ing. Said Section D eL/ress" enu2erated t)e #or$s su*6ect to co/rig)t: SEC. D. 4)e rig)ts granted * t)is .ecree s)a"", fro2 t)e 2o2ent of creation, su*sist #it) res/ect to an of t)e fo""o#ing #or$s: L L L L L L L L L &age *5 of /* %O+ &rints, /ictoria" i""ustrations, ad3ertising co/ies, "a*e"s, tags, and *oL #ra/sK L L L L L L L L L A"t)oug) /etitionerWs co/rig)t certi5cate #as entit"ed ZAd3ertising .is/"a 7nitsZ %#)ic) de/icted t)e *oL-t/e e"ectrica" de3ices+, its c"ai2 of co/rig)t infringe2ent cannot *e sustained. Co/rig)t, in t)e strict sense of t)e ter2, is /ure" a statutor rig)t. Being a 2ere statutor grant, t)e rig)ts are "i2ited to #)at t)e statute confers. It 2a *e o*tained and en6oed on" #it) res/ect to t)e su*6ects and * t)e /ersons, and on ter2s and conditions s/eci5ed in t)e statute. A Accordingly! it can cover only the &orks %alling &ithin the statutory enumeration or description. B & ( . secured its co/rig)t under t)e c"assi5cation class '(' &ork. 4)is *eing so, /etitionerWs co/rig)t /rotection eLtended on" to t)e tec)nica" dra#ings and not to t)e "ig)t *oL itse"f *ecause t)e "atter #as not at a"" in t)e categor of Z/rints, /ictoria" i""ustrations, ad3ertising co/ies, "a*e"s, tags and *oL #ra/s.Z Stated ot)er#ise, e3en as #e 5nd t)at & ( . indeed o#ned a 3a"id co/rig)t, t)e sa2e cou"d )a3e referred on" to t)e tec)nica" dra#ings #it)in t)e categor of Z/ictoria" i""ustrations.Z It cou"d not )a3e /ossi*" stretc)ed out to inc"ude t)e under"ing "ig)t *oL. 4)e strict a//"ication E of t)e "a#Ws enu2eration in Section D /re3ents us fro2 gi3ing /etitioner e3en a "itt"e "ee#a, t)at is, e3en if its co/rig)t certi5cate #as entit"ed ZAd3ertising .is/"a 7nits.Z ;)at t)e "a# does not inc"ude, it eLc"udes, and for t)e good reason: t)e "ig)t *oL #as not a "iterar or artistic /iece #)ic) cou"d *e co/rig)ted under t)e co/rig)t "a#. And no "ess c"ear", neit)er cou"d t)e "ac$ of statutor aut)orit to 2a$e t)e "ig)t *oL co/rig)ta*"e *e re2edied * t)e si2/"istic act of entit"ing t)e co/rig)t certi5cate issued * t)e Nationa" 0i*rar as ZAd3ertising .is/"a 7nits.Z In 5ne, if SMI and NEMI re/rinted & ( .Ws tec)nica" dra#ings for sa"e to t)e /u*"ic #it)out "icense fro2 & ( ., t)en no dou*t t)e #ou"d )a3e *een gui"t of co/rig)t infringe2ent. But t)is #as not t)e case. SMIWs and NEMIWs acts co2/"ained of * & ( . #ere to )a3e units si2i"ar or identica" to t)e "ig)t *oL i""ustrated in t)e tec)nica" dra#ings 2anufactured * Metro and EY. Rain*o# Ad3ertising, for "easing out to di,erent ad3ertisers. ;as t)is an infringe2ent of /etitionerWs co/rig)t o3er t)e tec)nica" dra#ings_ ;e do not t)in$ so. .uring t)e tria", t)e /resident of & ( . )i2se"f ad2itted t)at t)e "ig)t *oL #as neit)er a "iterar not an artistic #or$ *ut an Zengineering or 2ar$eting in3ention.Z <@ O*3ious", t)ere a//eared to *e so2e confusion regarding #)at oug)t or oug)t not to *e t)e /ro/er su*6ects of co/rig)ts, /atents and trade2ar$s. In t)e "eading case of ')o 3s. Court of A//ea"s, << #e ru"ed t)at t)ese t)ree "ega" rig)ts are co2/"ete" distinct and se/arate fro2 one anot)er, and t)e /rotection a,orded * one cannot *e used interc)angea*" to co3er ite2s or #or$s t)at eLc"usi3e" /ertain to t)e ot)ers: 4rade2ar$, co/rig)t and /atents are di,erent inte""ectua" /ro/ert rig)ts t)at cannot *e interc)anged #it) one anot)er. A trademark is any visible sign capable o% distinguishing the goods )trademark* or services )service mark* o% an enterprise and shall include a stamped or marked container o% goods. In re"ation t)ereto, a trade na2e 2eans t)e na2e or designation identifing or distinguis)ing an enter/rise. Mean#)i"e, the scope o% a copyright is con$ned to literary and artistic &orks #)ic) are origina" inte""ectua" creations in t)e "iterar and artistic do2ain /rotected fro2 t)e 2o2ent of t)eir creation. +atentable inventions! on the other hand! re%er to any technical solution o% a problem in any $eld o% human activity #)ic) is ne#, in3o"3es an in3enti3e ste/ and is industria"" a//"ica*"e. ON 4HE ISS7E O! &A4EN4 IN!RINVEMEN4 4)is *rings us to t)e neLt /oint: if, des/ite its 2anufacture and co22ercia" use of t)e light bo"es #it)out "icense fro2 /etitioner, /ri3ate res/ondents cannot *e )e"d "ega"" "ia*"e for infringe2ent of & ( .Ws co/rig)t o3er itstechnical dra&ings o% the said light bo"es, s)ou"d t)e *e "ia*"e instead for infringe2ent of /atent_ ;e do not t)in$ so eit)er. !or so2e reason or anot)er, /etitioner ne3er secured a /atent for t)e "ig)t *oLes. It t)erefore acIuired no /atent rig)ts #)ic) cou"d )a3e /rotected its in3ention, if in fact it rea"" #as. And *ecause it )ad no /atent, /etitioner cou"d not "ega"" /re3ent anone fro2 2anufacturing or co22ercia"" using t)e contra/tion. In Creser &recision Sste2s, Inc. 3s. Court of A//ea"s, <D #e )e"d t)at Zt)ere can *e no infringe2ent of a /atent unti" a /atent )as *een issued, since #)ate3er rig)t one )as to t)e in3ention co3ered * t)e /atent arises a"one fro2 t)e grant of /atent. L L L %A+n in3entor )as no co22on "a# rig)t to a 2ono/o" of )is in3ention. He )as t)e rig)t to 2a$e use of and 3end )is in3ention, *ut if )e 3o"untari" disc"oses it, suc) as * o,ering it for sa"e, t)e #or"d is free to co/ and use it #it) i2/unit. A /atent, )o#e3er, gi3es t)e in3entor t)e rig)t to eLc"ude a"" ot)ers. As a /atentee, )e )as t)e eLc"usi3e rig)t of 2a$ing, se""ing or using t)e in3ention. <C On t)e assu2/tion t)at /etitionerWs ad3ertising units #ere /atenta*"e in3entions, /etitioner re3ea"ed t)e2 fu"" to t)e /u*"ic * su*2itting t)e engineering dra#ings t)ereof to t)e Nationa" 0i*rar. &age ** of /* 4o *e a*"e to e,ecti3e" and "ega"" /rec"ude ot)ers fro2 co/ing and /ro5ting fro2 t)e in3ention, a /atent is a /ri2ordia" reIuire2ent. No /atent, no /rotection. 4)e u"ti2ate goa" of a /atent sste2 is to *ring ne# designs and tec)no"ogies into t)e /u*"ic do2ain t)roug) disc"osure. <> Ideas, once disc"osed to t)e /u*"ic #it)out t)e /rotection of a 3a"id /atent, are su*6ect to a//ro/riation #it)out signi5cant restraint. <G On one side of t)e coin is t)e /u*"ic #)ic) #i"" *ene5t fro2 ne# ideasK on t)e ot)er are t)e in3entors #)o 2ust *e /rotected. As )e"d in Bauer , Cie vs. (-.onnel, <J Z4)e act secured to t)e in3entor t)e eLc"usi3e rig)t to 2a$e use, and 3end t)e t)ing /atented, and conseIuent" to /re3ent ot)ers fro2 eLercising "i$e /ri3i"eges #it)out t)e consent of t)e /atentee. It #as /assed for t)e /ur/ose of encouraging usefu" in3ention and /ro2oting ne# and usefu" in3entions * t)e /rotection and sti2u"ation gi3en to in3enti3e genius, and #as intended to secure to t)e /u*"ic, after t)e "a/se of t)e eLc"usi3e /ri3i"eges granted t)e *ene5t of suc) in3entions and i2/ro3e2ents.Z 4)e "a# atte2/ts to stri$e an idea" *a"ance *et#een t)e t#o interests: Z%4)e /+atent sste2 t)us e2*odies a carefu"" crafted *argain for encouraging t)e creation and disc"osure of ne# usefu" and non- o*3ious ad3ances in tec)no"og and design, in return for t)e eLc"usi3e rig)t to /ractice t)e in3ention for a nu2*er of ears. 4)e in3entor 2a $ee/ )is in3ention secret and rea/ its fruits inde5nite". In consideration of its disc"osure and t)e conseIuent *ene5t to t)e co22unit, t)e /atent is granted. An eLc"usi3e en6o2ent is guaranteed )i2 for <A ears, *ut u/on t)e eL/iration of t)at /eriod, t)e $no#"edge of t)e in3ention inures to t)e /eo/"e, #)o are t)us ena*"ed to /ractice it and /ro5t * its use.Z <A 4)e /atent "a# )as a t)ree-fo"d /ur/ose: Z5rst, /atent "a# see$s to foster and re#ard in3entionK second, it /ro2otes disc"osures of in3entions to sti2u"ate furt)er inno3ation and to /er2it t)e /u*"ic to /ractice t)e in3ention once t)e /atent eL/iresK t)ird, t)e stringent reIuire2ents for /atent /rotection see$ to ensure t)at ideas in t)e /u*"ic do2ain re2ain t)ere for t)e free use of t)e /u*"ic.Z <B It is on" after an eL)austi3e eLa2ination * t)e /atent oTce t)at a /atent is issued. Suc) an in-de/t) in3estigation is reIuired *ecause Zin re#arding a usefu" in3ention, t)e rig)ts and #e"fare of t)e co22unit 2ust *e fair" dea"t #it) and e,ecti3e" guarded. 4o t)at end, t)e /rereIuisites to o*taining a /atent are strict" o*ser3ed and #)en a /atent is issued, t)e "i2itations on its eLercise are eIua"" strict" enforced. 4o *egin #it), a genuine in3ention or disco3er 2ust *e de2onstrated "est in t)e constant de2and for ne# a//"iances, t)e )ea3 )and of tri*ute *e "aid on eac) s"ig)t tec)no"ogica" ad3ance in art.Z <E 4)ere is no suc) scrutin in t)e case of co/rig)ts nor an notice /u*"is)ed *efore its grant to t)e e,ect t)at a /erson is c"ai2ing t)e creation of a #or$. 4)e "a# confers t)e co/rig)t fro2 t)e 2o2ent of creation D@ and t)e co/rig)t certi5cate is issued u/on registration #it) t)e Nationa" 0i*rar of a s#orn eL-/arte c"ai2 of creation. 4)erefore, not )a3ing gone t)roug) t)e arduous eLa2ination for /atents, t)e /etitioner cannot eLc"ude ot)ers fro2 t)e 2anufacture, sa"e or co22ercia" use of t)e "ig)t *oLes on t)e so"e *asis of its co/rig)t certi5cate o3er t)e tec)nica" dra#ings. Stated ot)er#ise, #)at /etitioner see$s is eLc"usi3it #it)out an o//ortunit for t)e /atent oTce %I&O+ to scrutini1e t)e "ig)t *oLWs e"igi*i"it as a /atenta*"e in3ention. 4)e iron )ere is t)at, )ad /etitioner secured a /atent instead, its eLc"usi3it #ou"d )a3e *een for <A ears on". But t)roug) t)e si2/"i5ed /rocedure of co/rig)t- registration #it) t)e Nationa" 0i*rar ^ #it)out undergoing t)e rigor of defending t)e /atenta*i"it of its in3ention *efore t)e I&O and t)e /u*"ic ^ t)e /etitioner #ou"d *e /rotected for G@ ears. 4)is situation cou"d not )a3e *een t)e intention of t)e "a#. In t)e oft-cited case of Ba$er 3s. Se"den D< , t)e 7nited States Su/re2e Court )e"d t)at only the e"pression o% an idea is protected by copyright! not the idea itsel%. In t)at case, t)e /"ainti, )e"d t)e co/rig)t of a *oo$ #)ic) eL/ounded on a ne# accounting sste2 )e )ad de3e"o/ed. 4)e /u*"ication i""ustrated *"an$ for2s of "edgers uti"i1ed in suc) a sste2. 4)e defendant re/roduced for2s si2i"ar to t)ose i""ustrated in t)e /"ainti,Ws co/rig)ted *oo$. 4)e 7S Su/re2e Court ru"ed t)at: Z4)ere is no dou*t t)at a #or$ on t)e su*6ect of *oo$-$ee/ing, t)oug) on" eL/"anator of #e"" $no#n sste2s, 2a *e t)e su*6ect of a co/rig)tK *ut, t)en, it is c"ai2ed on" as a *oo$. L L L. But t)ere is a c"ear distinction *et#een t)e *oo$s, as suc), and t)e art, #)ic) it is, intended to i""ustrate. 4)e 2ere state2ent of t)e /ro/osition is so e3ident t)at it reIuires )ard" an argu2ent to su//ort it. 4)e sa2e distinction 2a *e /redicated of e3er ot)er art as #e"" as t)at of *oo$$ee/ing. A treatise on t)e co2/osition and use of 2edicines, *e t)e o"d or ne#K on t)e construction and use of /"oug)s or #atc)es or c)urnsK or on t)e 2iLture and a//"ication of co"ors for /ainting or deingK or on t)e 2ode of dra#ing "ines to /roduce t)e e,ect of /ers/ecti3e, #ou"d *e t)e su*6ect of co/rig)tK *ut no one #ou"d contend t)at t)e co/rig)t of t)e treatise #ou"d gi3e t)e eLc"usi3e rig)t to t)e art or 2anufacture descri*ed t)erein. 4)e co/rig)t of t)e &age *0 of /* *oo$, if not /irated fro2 ot)er #or$s, #ou"d *e 3a"id #it)out regard to t)e no3e"t or #ant of no3e"t of its su*6ect 2atter. 4)e no3e"t of t)e art or t)ing descri*ed or eL/"ained )as not)ing to do #it) t)e 3a"idit of t)e co/rig)t. To 3i!e to t"e aut"or of t"e 'oo- an e=clusi!e propert( in t"e art descri'ed t"erein, >"en no e=amination of its no!elt( "as e!er 'een o?ciall( made, >ould 'e a surprise and a fraud upon t"e pu'lic. T"at is t"e pro!ince of letters patent, not of cop(ri3"t. T"e claim to an in!ention of disco!er( of an art or manufacture must 'e su'@ected to t"e e=amination of t"e Patent O?ce 'efore an e=clusi!e ri3"t t"erein can 'e o'tainedA and a patent from t"e 3o!ernment can onl( secure it. 4)e di,erence *et#een t)e t#o t)ings, "etters /atent and co/rig)t, 2a *e i""ustrated * reference to t)e su*6ects 6ust enu2erated. 4a$e t)e case of 2edicines. Certain 2iLtures are found to *e of great 3a"ue in t)e )ea"ing art. If t"e disco!erer >rites and pu'lis"es a 'oo- on t"e su'@ect 8as re3ular p"(sicians 3enerall( do:, "e 3ains no e=clusi!e ri3"t to t"e manufacture and sale of t"e medicineA "e 3i!es t"at to t"e pu'lic. If "e desires to acBuire suc" e=clusi!e ri3"t, "e must o'tain a patent for t"e mi=ture as a ne> art, manufacture or composition of matter. 9e ma( cop(ri3"t "is 'oo-, if "e pleasesA 'ut t"at onl( secures to "im t"e e=clusi!e ri3"t of printin3 and pu'lis"in3 "is 'oo-. So of all ot"er in!entions or disco!eries. 4)e co/rig)t of a *oo$ on /ers/ecti3e, no 2atter )o# 2an dra#ings and i""ustrations it 2a contain, gi3es no eLc"usi3e rig)t to t)e 2odes of dra#ing descri*ed, t)oug) t)e 2a ne3er )a3e *een $no#n or used *efore. B /u*"is)ing t)e *oo$ #it)out getting a /atent for t)e art, t)e "atter is gi3en to t)e /u*"ic. L L L No#, #)i"st no one )as a rig)t to /rint or /u*"is) )is *oo$, or an 2ateria" /art t)ereof, as a *oo$ intended to con3e instruction in t)e art, an /erson 2a /ractice and use t)e art itse"f #)ic) )e )as descri*ed and i""ustrated t)erein. T"e use of t"e art is a totall( diferent t"in3 from a pu'lication of t"e 'oo- e=plainin3 it. 4)e co/rig)t of a *oo$ on *oo$$ee/ing cannot secure t)e eLc"usi3e rig)t to 2a$e, se"" and use account *oo$s /re/ared u/on t)e /"an set fort) in suc) *oo$. ;)et)er t)e art 2ig)t or 2ig)t not )a3e *een /atented, is a Iuestion, #)ic) is not *efore us. It #as not /atented, and is o/en and free to t)e use of t)e /u*"ic. And, of course, in using t)e art, t)e ru"ed "ines and )eadings of accounts 2ust necessari" *e used as incident to it. 4)e /"ausi*i"it of t)e c"ai2 /ut for#ard * t)e co2/"ainant in t)is case arises fro2 a confusion of ideas /roduced * t)e /ecu"iar nature of t)e art descri*ed in t)e *oo$s, #)ic) )a3e *een 2ade t)e su*6ect of co/rig)t. In descri*ing t)e art, t)e i""ustrations and diagra2s e2/"oed )a//ened to corres/ond 2ore c"ose" t)an usua" #it) t)e actua" #or$ /erfor2ed * t)e o/erator #)o uses t)e art. L L L T"e description of t"e art in a 'oo-, t"ou3" entitled to t"e 'eneCt of cop(ri3"t, la(s no foundation for an e=clusi!e claim to t"e art itself. T"e o'@ect of t"e one is e=planationA t"e o'@ect of t"e ot"er is use. T"e former ma( 'e secured '( cop(ri3"t. T"e latter can onl( 'e secured, if it can 'e secured at all, '( letters patent.D %underscoring su//"ied+ ON 4HE ISS7E O! 4RA.EMAR' IN!RINVEMEN4 4)is issue concerns t)e use * res/ondents of t)e 2ar$ Z&oster AdsZ #)ic) /etitionerWs /resident said #as a contraction of Z/oster ad3ertising.Z & ( . #as a*"e to secure a trade2ar$ certi5cate for it, *ut one #)ere t)e goods s/eci5ed #ere Zstationeries suc) as "etter)eads, en3e"o/es, ca""ing cards and ne#s"etters.Z DD &etitioner ad2itted it did not co22ercia"" engage in or 2ar$et t)ese goods. On t)e contrar, it dea"t in e"ectrica"" o/erated *ac$"it ad3ertising units and t)e sa"e of ad3ertising s/aces t)ereon, #)ic), )o#e3er, #ere not at a"" s/eci5ed in t)e trade2ar$ certi5cate. 7nder t)e circu2stances, t)e Court of A//ea"s correct" cited #aberge Inc. vs. Intermediate Appellate Court, DC #)ere #e, in3o$ing Section D@ of t)e o"d 4rade2ar$ 0a#, ru"ed t)at Zt)e certi5cate of registration issued * t)e .irector of &atents can confer %u/on /etitioner+ t)e eLc"usi3e rig)t to use its o#n s2*o" only to those goods speci$ed in the certi$cate, su*6ect to an conditions and "i2itations s/eci5ed in t)e certi5cate L L L. One #)o )as ado/ted and used a trade2ar$ on )is goods does not prevent the adoption and use o% the same trademark by others %or products &hich are o% a di/erent description.Z D> #aberge! Inc. #as correct and #as in fact recent" reiterated in Canon 0abushiki 0aisha vs. Court o% Appeals. DG Assu2ing arguendo t)at Z&oster AdsZ cou"d 3a"id" Iua"if as a trade2ar$, t)e fai"ure of & ( . to secure a trade2ar$ registration for s/eci5c use on t)e "ig)t *oLes 2eant t)at t)ere cou"d not )a3e *een an trade2ar$ infringe2ent since registration #as an essentia" e"e2ent t)ereof.12&phi1 ON 4HE ISS7E O! 7N!AIR COM&E4I4ION &age *1 of /* If at a"", t)e cause of action s)ou"d )a3e *een for unfair co2/etition, a situation #)ic) #as /ossi*"e e3en if & ( . )ad no registration. DJ Ho#e3er, #)i"e t)e /etitionerWs co2/"aint in t)e R4C a"so cited unfair co2/etition, t)e tria" court did not 5nd /ri3ate res/ondents "ia*"e t)erefor. &etitioner did not a//ea" t)is /articu"ar /ointK )ence, it cannot no# re3i3e its c"ai2 of unfair co2/etition. But e3en disregarding /rocedura" issues, #e ne3ert)e"ess cannot )o"d res/ondents gui"t of unfair co2/etition. B t)e nature of t)ings, t)ere can *e no unfair co2/etition under t)e "a# on co/rig)ts a"t)oug) it is a//"ica*"e to dis/utes o3er t)e use of trade2ar$s. E3en a na2e or /)rase inca/a*"e of a//ro/riation as a trade2ar$ or tradena2e 2a, * "ong and eLc"usi3e use * a *usiness %suc) t)at t)e na2e or /)rase *eco2es associated #it) t)e *usiness or /roduct in t)e 2ind of t)e /urc)asing /u*"ic+, *e entit"ed to /rotection against unfair co2/etition. DA In t)is case, t)ere #as no e3idence t)at & ( .Ws use of Z&oster AdsZ #as distincti3e or #e""- $no#n. As noted * t)e Court of A//ea"s, /etitionerWs eL/ert #itnesses )i2se"f )ad testi5ed t)at Z S&oster AdsW #as too generic a na2e. So it #as diTcu"t to identif it #it) an co2/an, )onest" s/ea$ing.Z DB 4)is crucia" ad2ission * its o#n eL/ert #itness t)at Z&oster AdsZ cou"d not *e associated #it) & ( . s)o#ed t)at, in t)e 2ind of t)e /u*"ic, t)e goods and ser3ices carring t)e trade2ar$ Z&oster AdsZ cou"d not *e distinguis)ed fro2 t)e goods and ser3ices of ot)er entities. 4)is fact a"so /re3ented t)e a//"ication of t)e doctrine of secondar 2eaning. Z&oster AdsZ #as generic and inca/a*"e of *eing used as a trade2ar$ *ecause it #as used in t)e 5e"d of /oster ad3ertising, t)e 3er *usiness engaged in * /etitioner. ZSecondar 2eaningZ 2eans t)at a #ord or /)rase origina"" inca/a*"e of eLc"usi3e a//ro/riation #it) reference to an artic"e in t)e 2ar$et %*ecause it is geogra/)ica"" or ot)er#ise descri/ti3e+ 2ig)t ne3ert)e"ess )a3e *een used for so "ong and so eLc"usi3e" * one /roducer #it) reference to )is artic"e t)at, in t)e trade and to t)at *ranc) of t)e /urc)asing /u*"ic, t)e #ord or /)rase )as co2e to 2ean t)at t)e artic"e #as )is /ro/ert. DE 4)e ad2ission * /etitionerWs o#n eL/ert #itness t)at )e )i2se"f cou"d not associate Z&oster AdsZ #it) /etitioner & ( . *ecause it #as Ztoo genericZ de5nite" /rec"uded t)e a//"ication of t)is eLce/tion. Ha3ing discussed t)e 2ost i2/ortant and critica" issues, #e see no need to *e"a*or t)e rest. A"" to"d, t)e Court 5nds no re3ersi*"e error co22itted * t)e Court of A//ea"s #)en it re3ersed t)e Regiona" 4ria" Court of Ma$ati Cit. )9$#$EO#$, t)e /etition is )ere* .ENIE. and t)e decision of t)e Court of A//ea"s dated Ma DD, D@@< is A!!IRME. in toto. SO OR.ERE.. 4.#. No. *5+./6 Januar( 0+, *... E#ANCISCO 4. JOAFUIN, J#., and GJ P#OUCTIONS, INC., /etitioners, 3s. 9ONO#AGL$ E#AN;LIN #ILON, 4AG#I$L HOSA, )ILLIA% $SPOSO, E$LIP$ %$INA, J#., and CAS$& E#ANCISCO, res/ondents.
%$NOHA, J.: 4)is is a /etition for certiorari. &etitioners see$ to annu" t)e reso"ution of t)e .e/art2ent of Justice, dated August <D, <EED, in Cri2ina" Case No. R-ED-DABG>, entit"ed ZVa*rie" Uosa, et al. 3. Cit &rosecutor of Rue1on Cit and !rancisco JoaIuin, Jr.,Z and its reso"ution, dated .ece2*er C, <EED, dening /etitioner JoaIuin8s 2otion for reconsideration. &etitioner BJ &roductions, Inc. %BJ&I+ is t)e )o"derYgrantee of Certi5cate of Co/rig)t No. MEDD, dated Januar DB, <EA<, of 3hoda and Me, a dating ga2e s)o# aired fro2 <EA@ to <EAA. On June DB, <EAC, /etitioner BJ&I su*2itted to t)e Nationa" 0i*rar an addendu2 to its certi5cate of co/rig)t s/ecifing t)e s)o#8s for2at and st"e of /resentation. On Ju" <>, <EE<, #)i"e #atc)ing te"e3ision, /etitioner !rancisco JoaIuin, Jr., /resident of BJ&I, sa# on R&N C)anne" E an e/isode of It4s a .ate, #)ic) #as /roduced * I]0 &roductions, Inc. %I]0+. On Ju" <B, <EE<, )e #rote a "etter to /ri3ate res/ondent Va*rie" M. Uosa, /resident and genera" 2anager of I]0, infor2ing Uosa t)at BJ&I )ad a co/rig)t to 3hoda and Me and de2anding t)at I]0 discontinue airing It4s a .ate. In a "etter, dated Ju" <E, <EE<, /ri3ate res/ondent Uosa a/o"ogi1ed to /etitioner JoaIuin and reIuested a 2eeting to discuss a /ossi*"e sett"e2ent. I]0, )o#e3er, continued airing It8s a .ate, /ro2/ting /etitioner JoaIuin to send a second "etter on Ju" DG, <EE< in #)ic) )e &age */ of /* reiterated )is de2and and #arned t)at, if I]0 did not co2/", )e #ou"d endorse t)e 2atter to )is attornes for /ro/er "ega" action. Mean#)i"e, /ri3ate res/ondent Uosa soug)t to register I]08s co/rig)t to t)e 5rst e/isode of It8s a .ate for #)ic) it #as issued * t)e Nationa" 0i*rar a certi5cate of co/rig)t August <>, <EE<. 7/on co2/"aint of /etitioners, an infor2ation for 3io"ation of &... No. >E #as 5"ed against /ri3ate res/ondent Uosa toget)er #it) certain oTcers of R&N C)anne" E, na2e", ;i""ia2 Es/oso, !e"i/e Medina, and Case !rancisco, in t)e Regiona" 4ria" Court of Rue1on Cit #)ere it #as doc$eted as Cri2ina" Case No. ED-DABG> and assigned to Branc) <@> t)ereof. Ho#e3er, /ri3ate res/ondent Uosa soug)t a re3ie# of t)e reso"ution of t)e Assistant Cit &rosecutor *efore t)e .e/art2ent of Justice. On August <D, <EED, res/ondent Secretar of Justice !ran$"in M. .ri"on re3ersed t)e Assistant Cit &rosecutor8s 5ndings and directed )i2 to 2o3e for t)e dis2issa" of t)e case against /ri3ate res/ondents. * &etitioner JoaIuin 5"ed a 2otion for reconsideration, *ut )is 2otion denied * res/ondent Secretar of Justice on .ece2*er C, <EED. Hence, t)is /etition. &etitioners contend t)at: <. 4)e /u*"ic res/ondent gra3e" a*used )is discretion a2ounting to "ac$ of 6urisdiction ^ #)en )e in3o$ed non-/resentation of t)e 2aster ta/e as *eing fata" to t)e eListence of /ro*a*"e cause to /ro3e infringe2ent, des/ite t)e fact t)at /ri3ate res/ondents ne3er raised t)e sa2e as a contro3erted issue. D. 4)e /u*"ic res/ondent gra3e" a*used )is discretion a2ounting to "ac$ of 6urisdiction #)en )e arrogated unto )i2se"f t)e deter2ination of #)at is co/rig)ta*"e ^ an issue #)ic) is eLc"usi3e" #it)in t)e 6urisdiction of t)e regiona" tria" court to assess in a /ro/er /roceeding. Bot) /u*"ic and /ri3ate res/ondents 2aintain t)at /etitioners fai"ed to esta*"is) t)e eListence of /ro*a*"e cause due to t)eir fai"ure to /resent t)e co/rig)ted 2aster 3ideota/e of 3hoda and Me. 4)e contend t)at /etitioner BJ&I8s co/rig)t co3ers on" a s/eci5c e/isode of 3hoda and Me and t)at t)e for2ats or conce/ts of dating ga2e s)o#s are not co3ered * co/rig)t /rotection under &... No. >E. Non-Assign2ent of Error. &etitioners c"ai2 t)at t)eir fai"ure to su*2it t)e co/rig)ted 2aster 3ideota/e of t)e te"e3ision s)o# R)oda and Me #as not raised in issue * /ri3ate res/ondents during t)e /re"i2inar in3estigation and, t)erefore, it #as error for t)e Secretar of Justice to re3erse t)e in3estigating /rosecutor8s 5nding of /ro*a*"e cause on t)is ground. A /re"i2inar in3estigation fa""s under t)e aut)orit of t)e state /rosecutor #)o is gi3en * "a# t)e /o#er to direct and contro" cri2ina" actions. 0 He is, )o#e3er, su*6ect to t)e contro" of t)e Secretar of Justice. 4)us, Ru"e <<D, H> of t)e Re3ised Ru"es of Cri2ina" &rocedure, /ro3ides: Sec. >. .uty o% investigating $scal. ^ If t)e in3estigating 5sca" 5nds cause to )o"d t)e res/ondent for tria", )e s)a"" /re/are t)e reso"ution and corres/onding infor2ation. He s)a"" certif under oat) t)at )e, or as s)o#n * t)e record, an aut)ori1ed oTcer, )as /ersona"" eLa2ined t)e co2/"ainant and )is #itnesses, t)at t)ere is reasona*"e ground to *e"ie3e t)at a cri2e )as *een co22itted and t)at t)e accused is /ro*a*" gui"t t)ereof, t)at t)e accused #as infor2ed of t)e co2/"aint and of t)e e3idence su*2itted against )i2 and t)at )e #as gi3en an o//ortunit to su*2it contro3erting e3idence. Ot)er#ise, )e s)a"" reco22end dis2issa" of t)e co2/"aint. In eit)er case, )e s)a"" for#ard t)e records of t)e case to t)e /ro3incia" or cit 5sca" or c)ief state /rosecutor #it)in 53e %G+ das fro2 )is reso"ution. 4)e "atter s)a"" ta$e a//ro/riate action t)ereon ten %<@+ das fro2 recei/t t)ereof, i22ediate" infor2ing t)e /arties of said action. No co2/"aint or infor2ation 2a *e 5"ed or dis2issed * an in3estigating 5sca" #it)out t)e /rior #ritten aut)orit or a//ro3a" of t)e /ro3incia" or cit 5sca" or c)ief state /rosecutor. &age *, of /* ;)ere t)e in3estigating assistant 5sca" reco22ends t)e dis2issa" of t)e case *ut )is 5ndings are re3ersed * t)e /ro3incia" or cit 5sca" or c)ief state /rosecutor on t)e ground t)at a /ro*a*"e cause eLists, t)e "atter 2a, * )i2se"f, 5"e t)e corres/onding infor2ation against t)e res/ondent or direct an ot)er assistant 5sca" or state /rosecutor to do so, #it)out conducting anot)er /re"i2inar in3estigation. If u/on /etition * a /ro/er /art, t)e Secretar of Justice re3erses t)e reso"ution of t)e /ro3incia" or cit 5sca" or c)ief state /rosecutor, )e s)a"" direct t)e 5sca" concerned to 5"e t)e corres/onding infor2ation #it)out conducting anot)er /re"i2inar in3estigation or to dis2iss or 2o3e for dis2issa" of t)e co2/"aint or infor2ation. In re3ie#ing reso"utions of /rosecutors, t)e Secretar of Justice is not /rec"uded fro2 considering errors, a"t)oug) unassigned, for t)e /ur/ose of deter2ining #)et)er t)ere is /ro*a*"e cause for 5"ing cases in court. He 2ust 2a$e )is o#n 5nding, of /ro*a*"e cause and is not con5ned to t)e issues raised * t)e /arties during /re"i2inar in3estigation. Moreo3er, )is 5ndings are not su*6ect to re3ie# un"ess s)o#n to )a3e *een 2ade #it) gra3e a*use. O/inion of t)e Secretar of Justice &etitioners contend, )o#e3er, t)at t)e deter2ination of t)e Iuestion #)et)er t)e for2at or 2ec)anics of a s)o# is entit"ed to co/rig)t /rotection is for t)e court, and not t)e Secretar of Justice, to 2a$e. 4)e assai" t)e fo""o#ing /ortion of t)e reso"ution of t)e res/ondent Secretar of Justice: O4P)e essence of co/rig)t infringe2ent is t)e co/ing, in #)o"e or in /art, of co/rig)ta*"e 2ateria"s as de5ned and enu2erated in Section D of &.. No. >E. Apart %rom the manner in &hich it is actually e"pressed! ho&ever! the idea o% a dating game sho& is! in the opinion o% this (5ce! a non6copyrightable material. Ideas! concepts! %ormats! or schemes in their abstract %orm clearly do not %all &ithin the class o% &orks or materials susceptible o% copyright registration as provided in +.. 7o. 89. 1 %E2/)asis added.+ It is indeed true t)at t)e Iuestion #)et)er t)e for2at or 2ec)anics of /etitioners te"e3ision s)o# is entit"ed to co/rig)t /rotection is a "ega" Iuestion for t)e court to 2a$e. 4)is does not, )o#e3er, /rec"ude res/ondent Secretar of Justice fro2 2a$ing a /re"i2inar deter2ination of t)is Iuestion in reso"3ing #)et)er t)ere is /ro*a*"e cause for 5"ing t)e case in court. In doing so in t)is case, )e did not co22it an gra3e error. &resentation of Master 4a/e &etitioners c"ai2 t)at res/ondent Secretar of Justice gra3e" a*used )is discretion in ru"ing t)at t)e 2aster 3ideota/e s)ou"d )a3e *een /redented in order to deter2ine #)et)er t)ere #as /ro*a*"e cause for co/rig)t infringe2ent. 4)e contend t)at :;th Century #o" #ilm Corporation v. Court o% Appeals, / on #)ic) res/ondent Secretar of Justice re"ied in re3ersing t)e reso"ution of t)e in3estigating /rosecutor, is ina//"ica*"e to t)e case at *ar *ecause in t)e /resent case, t)e /arties /resented suTcient e3idence #)ic) c"ear" esta*"is) Z"in$age *et#een t)e co/rig)t s)o# ZR)oda and MeZ and t)e infringing 4[ s)o# ZIt8s a .ate.Z , 4)e case of D@t) Centur !oL !i"2 Cor/oration in3o"3ed raids conducted on 3arious 3ideota/e out"ets a""eged"" se""ing or renting out Z/iratedZ 3ideota/es. 4)e tria" court found t)at t)e aTda3its of NBI agents, gi3en in su//ort of t)e a//"ication for t)e searc) #arrant, #ere insuTcient #it)out t)e 2aster ta/e. According", t)e tria" court "ifted t)e searc) #arrants it )ad /re3ious" issued against t)e defendants. On /etition for re3ie#, t)is Court sustained t)e action of t)e tria" court and ru"ed: 6 4)e /resentation of t)e 2aster ta/es of t)e co/rig)ted 5"2s fro2 #)ic) t)e /irated 5"2s #ere a""eged" co/ied, #as necessar for t)e 3a"idit of searc) #arrants against t)ose #)o )a3e in t)eir /ossession t)e /irated 5"2s. 4)e /etitioner8s argu2ent to t)e e,ect t)at t)e /resentation of t)e 2aster ta/es at t)e ti2e of a//"ication 2a not *e necessar as t)ese #ou"d *e 2ere" e3identiar in nature and not deter2inati3e of #)et)er or not a /ro*a*"e cause eLists to 6ustif t)e issuance of t)e searc) #arrants is not 2eritorious. 4)e court cannot /resu2e t)at du/"icate or co/ied ta/es #ere necessari" re/roduced fro2 2aster ta/es t)at it o#ns. 4)e a//"ication for searc) #arrants #as directed against 3ideo ta/e out"ets #)ic) a""eged" #ere &age *6 of /* engaged in t)e unaut)ori1ed sa"e and renting out of co/rig)ted 5"2s *e"onging to t)e /etitioner /ursuant to &... >E. 4)e essence of a co/rig)t infringe2ent is t)e si2i"arit or at "east su*stantia" si2i"arit of t)e /ur/orted /irated #or$s to t)e co/rig)ted #or$. Hence, t)e a//"icant 2ust /resent to t)e court t)e co/rig)ted 5"2s to co2/are t)e2 #it) t)e /urc)ased e3idence of t)e 3ideo ta/es a""eged" /irated to deter2ine #)et)er t)e "atter is an unaut)ori1ed re/roduction of t)e for2er. 4)is "in$age of t)e co/rig)ted 5"2s to t)e /irated 5"2s 2ust *e esta*"is)ed to satisf t)e reIuire2ents of /ro*a*"e cause. Mere a""egations as to t)e eListence of t)e co/rig)ted 5"2s cannot ser3e as *asis for t)e issuance of a searc) #arrant. 4)is ru"ing #as Iua"i5ed in t)e "ater case of Columbia +ictures! Inc. v. Court o% Appeals < in #)ic) it #as )e"d: In 5ne, t)e su//osed pronunciamento in said case regarding t)e necessit for t)e /resentation of t)e 2aster ta/es of t)e co/rig)ted 5"2s for t)e 3a"idit of searc) #arrants s)ou"d at 2ost *e understood to 2ere" ser3e as a guide/ost in deter2ining t)e eListence of /ro*a*"e cause in co/rig)t infringe2ent cases &here there is doubt as to the true ne"us bet&een the master tape and the printed copies. An o*6ecti3e and carefu" reading of t)e decision in said case cou"d "ead to no ot)er conc"usion t)an t)at said directi3e #as )ard" intended to *e a s#ee/ing and inQeLi*"e reIuire2ent in a"" or si2i"ar co/rig)t infringe2ent cases. . . + In t)e case at *ar during t)e /re"i2inar in3estigation, /etitioners and /ri3ate res/ondents /resented #ritten descri/tions of t)e for2ats of t)eir res/ecti3e te"e3isions s)o#s, on t)e *asis of #)ic) t)e in3estigating /rosecutor ru"ed: As 2a O*eP g"eaned fro2 t)e e3idence on record, t)e su*stance of t)e te"e3ision /roductions co2/"ainant8s ZRHO.A AN. MEZ and Uosa8s ZI48S A .A4EZ is t)at t#o 2atc)es are 2ade *et#een a 2a"e and a fe2a"e, *ot) sing"e, and t)e t#o cou/"es are treated to a nig)t or t#o of dining andYor dancing at t)e eL/ense of t)e s)o#. 4)e 2a6or conce/ts of *ot) s)o#s is t)e sa2e. An di,erence a//ear 2ere 3ariations of t)e 2a6or conce/ts. 4)at t)ere is an infringe2ent on t)e co/rig)t of t)e s)o# ZRHO.A AN. MEZ *ot) in content and in t)e eLecution of t)e 3ideo /resentation are esta*"is)ed *ecause res/ondent8s ZI48S A .A4EZ is /ractica"" an eLact co/ of co2/"ainant8s ZRHO.A AN. MEZ *ecause of su*stantia" si2i"arities as fo""o#s, to #it: ZI48S A .A4EZ Set < a. 7n2arried /artici/ant of one gender %searc)er+ a//ears on one side of a di3ider, #)i"e t)ree %C+ un2arried /artici/ants of t)e ot)er gender are on t)e ot)er side of t)e di3ider. 4)is arrange2ent is done to ensure t)at t)e searc)er does not see t)e searc)ees. a. sa2e *. Searc)er as$s a Iuestion to *e ans#ered * eac) of t)e searc)ees. 4)e /ur/ose is to deter2ine #)o a2ong t)e searc)ees is t)e 2ost co2/ati*"e #it) t)e *. sa2e c. Searc)er s/ecu"ates on t)e 2atc) to t)e searc)ee. c. sa2e d. Se"ection is 2ade * t)e use of co2/ute %sic+ 2et)ods, or * t)e #a Iuestions are ans#ered, or d. Se"ection is *ased on t)e ans#er of t)e Searc)ees. Set D Sa2e as a*o3e #it) t)e genders of t)e searc)er and searc)ees interc)anged. . sa2e &etitioners assert t)at t)e for2at of 3hoda and Me is a /roduct of ingenuit and s$i"" and is t)us entit"ed to co/rig)t /rotection. It is t)eir /osition t)at t)e /resentation of a /oint-*-/oint co2/arison of t)e for2ats of t)e t#o s)o#s c"ear" de2onstrates t)e neLus *et#een t)e s)o#s and )ence esta*"is)es t)e eListence of /ro*a*"e cause for co/rig)t infringe2ent. Suc) *eing t)e case, t)e did not )a3e to /roduce t)e 2aster ta/e. 4o *egin #it) t)e for2at of a s)o# is not co/rig)ta*"e. Section D of &... No. >E, *5 ot)er#ise $no#n as t)e .ECREE ON IN4E00EC47A0 &RO&ER4Y, enu2erates t)e c"asses of #or$ entit"ed to co/rig)t /rotection, to #it: &age *< of /* Sec. D. 4)e rig)ts granted * t)is .ecree s)a"", fro2 t)e 2o2ent of creation, su*sist #it) res/ect to an of t)e fo""o#ing c"asses of #or$s: %A+ Boo$s, inc"uding co2/osite and cc"o/edic #or$s, 2anuscri/ts, directories, and ga1etteers: %B+ &eriodica"s, inc"uding /a2/)"ets and ne#s/a/ersK %C+ 0ectures, ser2ons, addresses, dissertations /re/ared for ora" de"i3erK %.+ 0ettersK %E+ .ra2atic or dra2atico-2usica" co2/ositionsK c)oreogra/)ic #or$s and entertain2ents in du2* s)o#s, t)e acting for2 of #)ic) is 5Led in #riting or ot)er#iseK %!+ Musica" co2/ositions, #it) or #it)out #ordsK %V+ ;or$s of dra#ing, /ainting, arc)itecture, scu"/ture, engra3ing, "it)ogra/), and ot)er #or$s of artK 2ode"s or designs for #or$s of artK %H+ Re/roductions of a #or$ of artK %I+ Origina" orna2enta" designs or 2ode"s for artic"es of 2anufacture, #)et)er or not /atenta*"e, and ot)er #or$s of a//"ied artK %J+ Ma/s, /"ans, s$etc)es, and c)artsK %'+ .ra#ings or /"astic #or$s of a scienti5c or tec)nica" c)aracterK %I+ &)otogra/)ic #or$s and #or$s /roduced * a /rocess ana"ogous to /)otogra/) "antern s"idesK %M+ Cine2atogra/)ic #or$s and #or$s /roduced * a /rocess ana"ogous to cine2atogra/) or an /rocess for 2a$ing audio-3isua" recordingsK %N+ Co2/uter /rogra2sK %O+ &rints, /ictoria" i""ustrations ad3ertising co/ies, "a*e"s tags, and *oL #ra/sK %&+ .ra2ati1ations, trans"ations, ada/tations, a*ridge2ents, arrange2ents and ot)er a"terations of "iterar, 2usica" or artistic #or$s or of #or$s of t)e &)i"i//ine go3ern2ent as )erein de5ned, #)ic) s)a"" *e /rotected as /ro3ided in Section B of t)is .ecree. %R+ Co""ections of "iterar, sc)o"ar", or artistic #or$s or of #or$s referred to in Section E of t)is .ecree #)ic) * reason of t)e se"ection and arrange2ent of t)eir contents constitute inte""ectua" creations, t)e sa2e to *e /rotected as suc) in accordance #it) Section B of t)is .ecree. %R+ Ot)er "iterar, sc)o"ar", scienti5c and artistic #or$s. 4)is /ro3ision is su*stantia"" t)e sa2e as H<AD of t)e IN4E00EC47A0 &RO&ER4Y CO.E O! &HI0I&&INES %R.A. No. BDEC+. ** 4)e for2at or 2ec)anics of a te"e3ision s)o# is not inc"uded in t)e "ist of /rotected #or$s in HD of &... No. >E. !or t)is reason, t)e /rotection a,orded * t)e "a# cannot *e eLtended to co3er t)e2. Co/rig)t, in t)e strict sense of t)e ter2, is /ure" a statutor rig)t. It is a ne# or inde/endent rig)t granted * t)e statute, and not si2/" a /re-eListing rig)t regu"ated * t)e statute. Being a statutor grant, t)e rig)ts are on" suc) as t)e statute confers, and 2a *e o*tained and en6oed on" #it) res/ect to t)e su*6ects and * t)e /ersons and on ter2s and conditions s/eci5ed in t)e statute. *0 Since . . . co/rig)t in /u*"is)ed #or$s is /ure" a statutor creation, a co/rig)t 2a *e o*tained on" for a #or$ fa""ing #it)in t)e statutor enu2eration or descri/tion. *1 Regard"ess of t)e )istorica" 3ie#/oint, it is aut)oritati3e" sett"ed in t)e 7nited States t)at t)ere is no co/rig)t eLce/t t)at #)ic) is *ot) created and secured * act of Congress . . . . . */ &... No. >E, HD, in enu2erating #)at are su*6ect to co/rig)t, refers to 5nis)ed #or$s and not to conce/ts. 4)e co/rig)t does not eLtend to &age *+ of /* an idea, /rocedure, /rocess, sste2, 2et)od of o/eration, conce/t, /rinci/"e, or disco3er, regard"ess of t)e for2 in #)ic) it is descri*ed, eL/"ained, i""ustrated, or e2*odied in suc) #or$. *, 4)us, t)e ne# IN4E00EC47A0 &RO&ER4Y CO.E O! 4HE &HI0I&&INES /ro3ides: Sec. <AG. <nprotected Sub=ect Matter. ^ Not#it)standing t)e /ro3isions of Sections <AD and <AC, no /rotection s)a"" eLtend, under t)is "a#, to an idea, /rocedure, sste2, 2et)od or o/eration, conce/t, /rinci/"e, disco3er or 2ere data as suc), e3en if t)e are eL/ressed, eL/"ained, i""ustrated or e2*odied in a #or$K ne#s of t)e da and ot)er 2isce""aneous facts )a3ing t)e c)aracter of 2ere ite2s of /ress infor2ationK or an oTcia" teLt of a "egis"ati3e, ad2inistrati3e or "ega" nature, as #e"" as an oTcia" trans"ation t)ereof. ;)at t)en is t)e su*6ect 2atter of /etitioners8 co/rig)t_ 4)is Court is of t)e o/inion t)at /etitioner BJ&I8s co/rig)t co3ers audio-3isua" recordings of eac) e/isode of 3hoda and Me, as fa""ing #it)in t)e c"ass of #or$s 2entioned in &... >E, HD%M+, to #it: Cine2atogra/)ic #or$s and #or$s /roduced * a /rocess ana"ogous to cine2atogra/) or an /rocess for 2a$ing audio-3isua" recordingsK 4)e co/rig)t does not eLtend to t)e genera" conce/t or for2at of its dating ga2e s)o#. According", * t)e 3er nature of t)e su*6ect of /etitioner BJ&I8s co/rig)t, t)e in3estigating /rosecutor s)ou"d )a3e t)e o//ortunit to co2/are t)e 3ideota/es of t)e t#o s)o#s. Mere descri/tion * #ords of t)e genera" for2at of t)e t#o dating ga2e s)o#s is insuTcientK t)e /resentation of t)e 2aster 3ideota/e in e3idence #as indis/ensa*"e to t)e deter2ination of t)e eListence of /ro*a*"e cause. As a/t" o*ser3ed * res/ondent Secretar of Justice: A te"e3ision s)o# inc"udes 2ore t)an 2ere #ords can descri*e *ecause it in3o"3es a #)o"e s/ectru2 of 3isua"s and e,ects, 3ideo and audio, suc) t)at no si2i"arit or dissi2i"arit 2a *e found * 2ere" descri*ing t)e genera" co/rig)tYfor2at of *ot) dating ga2e s)o#s. ;HERE!ORE, t)e /etition is )ere* .ISMISSE. SO OR.ERE.. 4.#. No. L-16/50 %arc" *6, *.+< EILIPINO SOCI$T& OE CO%POS$#S, AUT9O#S AN PUGLIS9$#S, INC., /"ainti,-a//e""ant, 3s. G$NJA%IN TAN, defendant-a//e""ee. Lichauco! +icao , Agcaoili La& (5ce %or plainti/6appellant. 3amon A. 7ieves %or de%endant6appellee.
PA#AS, J.: An a//ea" #as 2ade to t)e Court of A//ea"s doc$eted as CA-V.R. No. >JCAC-R I entit"ed #ilipino Society o% Composers! Authors! +ublishers! Inc.! +lainti/6Appellant v. Ben=amin Tan! .e%endant6Appellee! fro2 t)e decision of t)e Court of !irst Instance of Mani"a, Branc) [II in Ci3i" Case No. A<DDD II '#ilipino Society o% Composers! Authors and +ublishers! Inc.! +lainti/ v. Ben=amin Tan! .e%endant!' #)ic) )ad dis2issed /"ainti,s8 co2/"aint #it)out s/ecia" /ronounce2ent as to costs. 4)e Court of A//ea"s, 5nding t)at t)e case in3o"3es /ure Iuestions of "a#, certi5ed t)e sa2e to t)e Su/re2e Court for 5na" deter2ination %Reso"ution, CA-V.R. No. >JCAC-R, Ro""o, /. CJK Reso"ution of t)e Su/re2e Court of !e*ruar <J, <EAC in 0-CJ>@D, Ro""o, /. CB+. 4)e undis/uted facts of t)is case are as fo""o#s: &"ainti,-a//e""ant is a non-/ro5t association of aut)ors, co2/osers and /u*"is)ers du" organi1ed under t)e Cor/oration 0a# of t)e &)i"i//ines and registered #it) t)e Securities and ELc)ange Co22ission. Said association is t)e o#ner of certain 2usica" co2/ositions a2ong #)ic) are t)e songs entit"ed: Z.a)i" Sa IoZ, ZSa/ag$at I$a# A A$in,Z ZSa/ag$at 'a2i A 4ao 0a2angZ and Z4)e Nearness Of You.Z &age *. of /* On t)e ot)er )and, defendant-a//e""ee is t)e o/erator of a restaurant $no#n as ZA"eL Soda !oundation and RestaurantZ #)ere a co2*o #it) /rofessiona" singers, )ired to /"a and sing 2usica" co2/ositions to entertain and a2use custo2ers t)erein, #ere /"aing and singing t)e a*o3e-2entioned co2/ositions #it)out an "icense or /er2ission fro2 t)e a//e""ant to /"a or sing t)e sa2e. According", a//e""ant de2anded fro2 t)e a//e""ee /a2ent of t)e necessar "icense fee for t)e /"aing and singing of aforesaid co2/ositions *ut t)e de2and #as ignored. Hence, on No3e2*er A, <EJA, a//e""ant 5"ed a co2/"aint #it) t)e "o#er court for infringe2ent of co/rig)t against defendant-a//e""ee for a""o#ing t)e /"aing in defendant-a//e""ee8s restaurant of said songs co/rig)ted in t)e na2e of t)e for2er. .efendant-a//e""ee, in )is ans#er, countered t)at t)e co2/"aint states no cause of action. ;)i"e not dening t)e /"aing of said co/rig)ted co2/ositions in )is esta*"is)2ent, a//e""ee 2aintains t)at t)e 2ere singing and /"aing of songs and /o/u"ar tunes e3en if t)e are co/rig)ted do not constitute an infringe2ent %Record on A//ea", /. <<K Reso"ution, CA-V.R. NO. >JCAC-R, Ro""o, //. CD-CJ+ under t)e /ro3isions of Section C of t)e Co/rig)t 0a# %Act C<C> of t)e &)i"i//ine 0egis"ature+. 4)e "o#er court, 5nding for t)e defendant, dis2issed t)e co2/"aint %Record on A//ea", /. DG+. &"ainti, a//ea"ed to t)e Court of A//ea"s #)ic) as a"read stated certi5ed t)e case to t)e Su/re2e Court for ad6udication on t)e "ega" Iuestion in3o"3ed. %Reso"ution, Court of A//ea"s, Ro""o, /. CJK Reso"ution of t)e Su/re2e Court of !e*ruar <B, <EAC, Ro""o, /. CB+. In its *rief in t)e Court of A//ea"s, a//e""ant raised t)e fo""o#ing Assign2ent of Errors: I 4HE 0O;ER CO7R4 ERRE. IN HO0.INV 4HA4 4HE M7SICA0 COM&OSI4IONS O! 4HE A&&E00AN4 ;ERE IN 4HE NA47RE O! &7B0IC &RO&ER4Y ;HEN 4HEY ;ERE CO&YRIVH4E. OR REVIS4ERE.. II 4HE 0O;ER CO7R4 ERRE. IN HO0.INV 4HA4 4HE M7SICA0 COM&OSI4IONS O! 4HE A&&E00AN4 ;ERE &0AYE. AN. S7NV IN 4HE SO.A !O7N4AIN AN. RES4A7RAN4 O! 4HE A&&E00EE BY IN.E&EN.EN4 CON4RAC4ORS AN. ON0Y 7&ON 4HE RER7ES4 O! C7S4OMERS. III 4HE 0O;ER CO7R4 ERRE. IN HO0.INV 4HA4 4HE &0AYINV AN. SINVINV O! CO&YRIVH4E. M7SICA0 COM&OSI4IONS IN 4HE SO.A !O7N4AIN AN. RES4A7RAN4 O! 4HE A&&E00EE ARE NO4 &7B0IC &ER!ORMANCES !OR &RO!I4 O! 4HE SAI. COM&OSI4IONS ;I4HIN 4HE MEANINV AN. CON4EM&0A4ION O! 4HE CO&YRIVH4 0A;. I[ 4HE 0O;ER CO7R4 ERRE. IN NO4 HO0.INV 4HA4 4HE A&&E00EE IS 0IAB0E 4O 4HE A&&E00AN4 !OR !O7R %>+ SE&ARA4E IN!RINVEMEN4S. %Brief for A//e""ant, //. A and B+. 4)e /etition is de3oid of 2erit. 4)e /rinci/a" issues in t)is case are #)et)er or not t)e /"aing and signing of 2usica" co2/ositions #)ic) )a3e *een co/rig)ted under t)e /ro3isions of t)e Co/rig)t 0a# %Act C<C>+ inside t)e esta*"is)2ent of t)e defendant-a//e""ee constitute a /u*"ic /erfor2ance for /ro5t #it)in t)e 2eaning and conte2/"ation of t)e Co/rig)t 0a# of t)e &)i"i//inesK and assu2ing t)at t)ere #ere indeed /u*"ic /erfor2ances for /ro5t, #)et)er or not a//e""ee can *e )e"d "ia*"e t)erefor. A//e""ant anc)ors its c"ai2 on Section C%c+ of t)e Co/rig)t 0a# #)ic) /ro3ides: SEC. C. 4)e /ro/rietor of a co/rig)t or )is )eirs or assigns s)a"" )a3e t)e eLc"usi3e rig)t: LLL LLL LLL %c+ 4o eL)i*it, /erfor2, re/resent, /roduce, or re/roduce t)e co/rig)ted #or$ in an 2anner or * an 2et)od #)ate3er for /ro5t or ot)er#iseK if not re/roduced in co/ies for sa"e, to se"" an 2anuscri/ts or an record #)atsoe3er t)ereofK LLL LLL LLL &age 05 of /* It 2aintains t)at /"aing or singing a 2usica" co2/osition is uni3ersa"" acce/ted as /erfor2ing t)e 2usica" co2/osition and t)at /"aing and singing of co/rig)ted 2usic in t)e soda fountain and restaurant of t)e a//e""ee for t)e entertain2ent of t)e custo2ers a"t)oug) t)e "atter do not /a for t)e 2usic *ut on" for t)e food and drin$ constitute /erfor2ance for /ro5t under t)e Co/rig)t 0a# %Brief for t)e A//e""ant, //. <E-DG+. ;e concede t)at indeed t)ere #ere Z/u*"ic /erfor2ances for /ro5t. Z 4)e #ord Z/erfor2Z as used in t)e Act )as *een a//"ied to ZOne #)o /"as a 2usica" co2/osition on a /iano, t)ere* /roducing in t)e air sound #a3es #)ic) are )eard as 2usic ... and if t)e instru2ent )e /"as on is a /iano /"us a *roadcasting a//aratus, so t)at #a3es are t)ro#n out, not on" u/on t)e air, *ut u/on t)e ot)er, t)en a"so )e is /erfor2ing t)e 2usica" co2/osition.Z %Buc$, et a". 3. .uncan, et a".K Sa2e Je#e"" 0a Sa""e Rea"t Co., CD!. Dd. Series CJA+. In re"ation t)ereto, it )as *een )e"d t)at Z4)e /"aing of 2usic in dine and dance esta*"is)2ent #)ic) #as /aid for * t)e /u*"ic in /urc)ases of food and drin$ constituted Z/erfor2ance for /ro5tZ #it)in a Co/rig)t 0a#.Z %Buc$, et a". 3. Russon No. >>BE DG !. Su//. C<A+. 4)us, it )as *een eL/"ained t)at #)i"e it is /ossi*"e in suc) esta*"is)2ents for t)e /atrons to /urc)ase t)eir food and drin$s and at t)e sa2e ti2e dance to t)e 2usic of t)e orc)estra, t)e 2usic is furnis)ed and used * t)e orc)estra for t)e /ur/ose of inducing t)e /u*"ic to /atroni1e t)e esta*"is)2ent and /a for t)e entertain2ent in t)e /urc)ase of food and drin$s. 4)e defendant conducts )is /"ace of *usiness for /ro5t, and it is /u*"icK and t)e 2usic is /erfor2ed for /ro5t %Ibid, /. C<E+. In a si2i"ar case, t)e Court ru"ed t)at Z4)e &erfor2ance in a restaurant or )ote" dining roo2, * /ersons e2/"oed * t)e /ro/rietor, of a co/rig)ted 2usica" co2/osition, for t)e entertain2ent of /atrons, #it)out c)arge for ad2ission to )ear it, infringes t)e eLc"usi3e rig)t of t)e o#ner of t)e co/rig)t.Z %Her*ert 3. S)an"e Co.K Jo)n C)urc) Co. 3. Hi""ard Hote" Co., et a"., D>D 7.S. GE@- GE<+. In de"i3ering t)e o/inion of t)e Court in said t#o cases, Justice Ho"2es e"a*orated t)us: If t)e rig)ts under t)e co/rig)t are infringed on" * a /erfor2ance #)ere 2one is ta$en at t)e door, t)e are 3er i2/erfect" /rotected. &erfor2ances not di,erent in $ind fro2 t)ose of t)e defendants cou"d *e gi3en t)at 2ig)t co2/ete #it) and e3en destro t)e success of t)e 2ono/o" t)at t)e "a# intends t)e /"ainti,s to )a3e. It is enoug) to sa t)at t)ere is no need to construe t)e statute so narro#". 4)e defendants8 /erfor2ances are not e"ee2osnar. 4)e are /art of a tota" for #)ic) t)e /u*"ic /as, and t)e fact t)at t)e /rice of t)e #)o"e is attri*uted to a /articu"ar ite2 #)ic) t)ose /resent are eL/ected to order is not i2/ortant. It is true t)at t)e 2usic is not t)e so"e o*6ect, *ut neit)er is t)e food, #)ic) /ro*a*" cou"d *e got c)ea/er e"se#)ere. 4)e o*6ect is a re/ast in surroundings t)at to /eo/"e )a3ing "i2ited /o#er of con3ersation or dis"i$ing t)e ri3a" noise, gi3e a "uLurious /"easure not to *e )ad fro2 eating a si"ent 2ea". If 2usic did not /a, it #ou"d *e gi3en u/. If it /as, it /as out of t)e /u*"ic8s /oc$et. ;)et)er it /as or not, t)e /ur/ose of e2/"oing it is /ro5t, and t)at is enoug). %Ibid., /. GE>+. In t)e case at *ar, it is ad2itted t)at t)e /atrons of t)e restaurant in Iuestion /a on" for t)e food and drin$s and a//arent" not for "istening to t)e 2usic. As found * t)e tria" court, t)e 2usic /ro3ided is for t)e /ur/ose of entertaining and a2using t)e custo2ers in order to 2a$e t)e esta*"is)2ent 2ore attracti3e and desira*"e %Record on A//ea", /. D<+. It #i"" *e noted t)at for t)e /"aing and singing t)e 2usica" co2/ositions in3o"3ed, t)e co2*o #as /aid as inde/endent contractors * t)e a//e""ant %Record on A//ea", /. D>+. It is t)erefore o*3ious t)at t)e eL/enses entai"ed t)ere* are added to t)e o3er)ead of t)e restaurant #)ic) are eit)er e3entua"" c)arged in t)e /rice of t)e food and drin$s or to t)e o3era"" tota" of additiona" inco2e /roduced * t)e *igger 3o"u2e of *usiness #)ic) t)e entertain2ent #as /rogra22ed to attract. ConseIuent", it is *eond Iuestion t)at t)e /"aing and singing of t)e co2*o in defendant-a//e""ee8s restaurant constituted /erfor2ance for /ro5t conte2/"ated * t)e Co/rig)t 0a#. %Act C<C> a2ended * &... No. >E, as a2ended+. Ne3ert)e"ess, a//e""ee cannot *e said to )a3e infringed u/on t)e Co/rig)t 0a#. A//e""ee8s a""egation t)at t)e co2/osers of t)e contested 2usica" co2/ositions &aived t)eir rig)t in fa3or of t)e genera" /u*"ic #)en t)e a""o#ed t)eir inte""ectua" creations to *eco2e /ro/ert of t)e /u*"ic do2ain *efore a//"ing for t)e corres/onding co/rig)ts for t)e sa2e %Brief for .efendant-A//e""ee, //. <>-<G+ is correct. 4)e Su/re2e Court )as ru"ed t)at Z&aragra/) CC of &atent OTce Ad2inistrati3e Order No. C %as a2ended, dated Se/te2*er <B, <E>A+ entit"ed 8Ru"es of &ractice in t)e &)i"i//ines &atent OTce re"ating to t)e Registration of Co/rig)t C"ai2s8 /ro2u"gated /ursuant to Re/u*"ic Act <JG, /ro3ides a2ong ot)er t)ings t)at an inte""ectua" creation s)ou"d *e co/rig)ted t)irt %C@+ das after its /u*"ication, if 2ade in Mani"a, or #it)in t)e %J@+ das if 2ade e"se#)ere, fai"ure of #)ic) renders suc) creation /u*"ic /ro/ert.Z %Santos 3. McCu""oug) &age 0* of /* &rinting Co2/an, <D SCRA CD>-CDG O<EJ>P. Indeed, if t)e genera" /u*"ic )as 2ade use of t)e o*6ect soug)t to *e co/rig)ted for t)irt %C@+ das /rior to t)e co/rig)t a//"ication t)e "a# dee2s t)e o*6ect to )a3e *een donated to t)e /u*"ic do2ain and t)e sa2e can no "onger *e co/rig)ted. A carefu" stud of t)e records re3ea"s t)at t)e song Z.a)i" Sa IoZ #)ic) #as registered on A/ri" D@, <EGJ %Brief for A//e""ant, /. <@+ *eca2e /o/u"ar in radios, 6u$e *oLes, etc. "ong *efore registration %4SN, Ma DB, <EJB, //. C-GK DG+ #)i"e t)e song Z4)e Nearness Of YouZ registered on Januar <>, <EGG %Brief for A//e""ant, /. <@+ )ad *eco2e /o/u"ar t#ent 53e %DG+ ears /rior to <EJB, %t)e ear of t)e )earing+ or fro2 <E>C %4SN, Ma DB, <EJB, /. DA+ and t)e songs ZSa/ag$at I$a# A A$inZ and ZSa/ag$at 'a2i A 4ao 0a2angZ *ot) registered on Ju" <@, <EJJ, a//ear to )a3e *een $no#n and sang * t)e #itnesses as ear" as <EJG or t)ree ears *efore t)e )earing in <EJB. 4)e testi2onies of t)e #itnesses at t)e )earing of t)is case on t)is su*6ect #ere unre*utted * t)e a//e""ant. %Ibid! //. DBK DE and C@+. 7nder t)e circu2stances, it is c"ear t)at t)e 2usica" co2/ositions in Iuestion )ad "ong *eco2e /u*"ic /ro/ert, and are t)erefore *eond t)e /rotection of t)e Co/rig)t 0a#. &REMISES CONSI.ERE., t)e a//ea"ed decision of t)e Court of !irst Instance of Mani"a in Ci3i" Case No. A<DDD is )ere* A!!IRME.. SO OR.ERE.. 4.#. No. *1*,00 Jul( *., *... PACITA I. 9AGANA, ALICIA L. CINCO and JOJITA N. E$#NANO, /etitioners, 3s. E$LICIA C. #OGL$S and 4OO)ILL T#AIN4 CO., INC., res/ondents.
PA#O, J.: 4)e case *efore us is a /etition for re3ie# on certiorari * to set aside t)e %a+ decision or t)e Court of A//ea"s 0 , and %*+ t)e reso"ution dening /etitioners8 2otion for reconsideration, 1 in #)ic) t)e a//e""ate court aTr2ed t)e tria" court8s dis2issa" of t)e co2/"aint for infringe2ent andYor unfair co2/etition and da2ages *ut de"eted t)e a#ard for attorne8s fees.12&phi1.n>t 4)e facts are as fo""o#s: &etitioners are aut)ors and co/rig)t o#ners of du" issued certi5cates of co/rig)t registration co3ering t)eir /u*"is)ed #or$s, /roduced t)roug) t)eir co2*ined resources and e,orts, entit"ed CO00EVE ENV0ISH !OR 4O.AY %CE4 for *re3it+, Boo$s < and D, and ;OR'BOO' !OR CO00EVE !RESHMAN ENV0ISH, Series <. Res/ondent !e"icidad Ro*"es and Vood#i"" 4rading Co., Inc. are t)e aut)orY/u*"is)er and distri*utorYse""er of anot)er /u*"is)ed #or$ entit"ed Z.E[E0O&INV ENV0ISH &RO!ICIENCYZ %.E& for *re3it+, Boo$s < and D %<EBG edition+ #)ic) *oo$ #as co3ered * co/rig)ts issued to t)e2. In t)e course of re3ising t)eir /u*"is)ed #or$s, /etitioners scouted and "oo$ed around 3arious *oo$stores to c)ec$ on ot)er teLt*oo$s dea"ing #it) t)e sa2e su*6ect 2atter. B c)ance t)e ca2e u/on t)e *oo$ of res/ondent Ro*"es and u/on /erusa" of said *oo$ t)e #ere sur/rised to see t)at t)e *oo$ #as stri$ing" si2i"ar to t)e contents, sc)e2e of /resentation, i""ustrations and i""ustrati3e eLa2/"es in t)eir o#n *oo$, CE4. After an ite2i1ed eLa2ination and co2/arison of t)e t#o *oo$s %CE4 and .E&+, /etitioners found t)at se3era" /ages of t)e res/ondent8s *oo$ are si2i"ar, if not a"" toget)er a co/ of /etitioners8 *oo$, #)ic) is a case of /"agiaris2 and co/rig)t infringe2ent. &etitioners t)en 2ade de2ands for da2ages against res/ondents and a"so de2anded t)at t)e cease and desist fro2 furt)er se""ing and distri*uting to t)e genera" /u*"ic t)e infringed co/ies of res/ondent Ro*"es8 #or$s. Ho#e3er, res/ondents ignored t)e de2ands, )ence, on Ju" A, <EBBK /etitioners 5"ed #it) t)e Regiona" 4ria" Court, Ma$ati, a co2/"aint for ZInfringe2ent andYor unfair co2/etition #it) da2agesZ / against /ri3ate res/ondents. , In t)e co2/"aint, /etitioners a""eged t)at in <EBG, res/ondent !e"icidad C. Ro*"es *eing su*stantia"" fa2i"iar #it) t)e contents of /etitioners8 #or$s, and #it)out securing t)eir /er2ission, "ifted, co/ied, /"agiari1ed andYor trans/osed certain /ortions of t)eir *oo$ CE4. 4)e teLtua" contents and i""ustrations of CE4 #ere "itera"" re/roduced in &age 00 of /* t)e *oo$ .E&. 4)e /"agiaris2, incor/oration and re/roduction of /articu"ar /ortions of t)e *oo$ CE4 in t)e *oo$ .E&, #it)out t)e aut)orit or consent of /etitioners, and t)e 2isre/resentations of res/ondent Ro*"es t)at t)e sa2e #as )er origina" #or$ and conce/t ad3erse" a,ected and su*stantia"" di2inis)ed t)e sa"e of t)e /etitioners8 *oo$ and caused t)e2 actua" da2ages * #a of unrea"i1ed inco2e. .es/ite t)e de2ands of t)e /etitioners for res/ondents to desist fro2 co22itting furt)er acts of infringe2ent and for res/ondent to reca"" .E& fro2 t)e 2ar$et, res/ondents refused. &etitioners as$ed t)e court to order t)e su*2ission of a"" co/ies of t)e *oo$ .E&, toget)er #it) t)e 2o"ds, /"ates and 5"2s and ot)er 2ateria"s used in its /rinting destroed, and for res/ondents to render an accounting of t)e /roceeds of a"" sa"es and /ro5ts since t)e ti2e of its /u*"ication and sa"e. Res/ondent Ro*"es #as i2/"eaded in t)e suit *ecause s)e aut)ored and direct" co22itted t)e acts of infringe2ent co2/"ained of, #)i"e res/ondent Vood#i"" 4rading Co., Inc. #as i2/"eaded as t)e /u*"is)er and 6oint co-o#ner of t)e co/rig)t certi5cates of registration co3ering t)e t#o *oo$s aut)ored and caused to *e /u*"is)ed * res/ondent Ro*"es #it) o*3ious conni3ance #it) one anot)er. On Ju" DA, <EBB, res/ondent Ro*"es 5"ed a 2otion for a *i"" of /articu"ars 6 #)ic) t)e tria" court a//ro3ed on August <A, <EBB. &etitioners co2/"ied #it) t)e desired /articu"ari1ation, and furnis)ed res/ondent Ro*"es t)e s/eci5c /ortions, inc"usi3e of /ages and "ines, of t)e /u*"is)ed and co/rig)ted *oo$s of t)e /etitioners #)ic) #ere trans/osed, "ifted, co/ied and /"agiari1ed andYor ot)er#ise found t)eir #a into res/ondent8s *oo$. On August <, <EBB, res/ondent Vood#i"" 4rading Co., Inc. 5"ed its ans#er to t)e co2/"aint < and a""eged t)at /etitioners )ad no cause of action against Vood#i"" 4rading Co., Inc. since it #as not /ri3 to t)e 2isre/resentation, /"agiaris2, incor/oration and re/roduction of t)e /ortions of t)e *oo$ of /etitionersK t)at t)ere #as an agree2ent *et#een Vood#i"" and t)e res/ondent Ro*"es t)at Ro*"es guaranteed Vood#i"" t)at t)e 2ateria"s uti"i1ed in t)e 2anuscri/t #ere )er o#n or t)at s)e )ad secured t)e necessar /er2ission fro2 contri*utors and sourcesK t)at t)e aut)or assu2ed so"e res/onsi*i"it and )e"d t)e /u*"is)er #it)out an "ia*i"it. On No3e2*er DB, <EBB, res/ondent Ro*"es 5"ed )er ans#er + , and denied t)e a""egations of /"agiaris2 and co/ing t)at /etitioners c"ai2ed. Res/ondent stressed t)at %<+ t)e *oo$ .E& is t)e /roduct of )er inde/endent researc)es, studies and eL/eriences, and #as not a co/ of an eListing 3a"id co/rig)ted *oo$K %D+ .E& fo""o#ed t)e sco/e and seIuence or s""a*us #)ic) are co22on to a"" Eng"is) gra22ar #riters as reco22ended * t)e Association of &)i"i//ine Co""eges of Arts and Sciences %A&CAS+, so an si2i"arit *et#een t)e res/ondents *oo$ and t)at of t)e /etitioners #as due to t)e orientation of t)e aut)ors to *ot) #or$s and standards and s""a*usK and %C+ t)e si2i"arities 2a *e due to t)e aut)ors8 eLercise of t)e Zrig)t to fair use of co/rigt)ed 2ateria"s, as guides.Z Res/ondent inter/osed a counterc"ai2 for da2ages on t)e ground t)at *ad fait) and 2a"ice attended t)e 5"ing of t)e co2/"aint, *ecause /etitioner Ha*ana #as /rofessiona"" 6ea"ous and t)e *oo$ .E& re/"aced CE4 as t)e oTcia" teLt*oo$ of t)e graduate studies de/art2ent of t)e !ar Eastern 7ni3ersit. . .uring t)e /re-tria" conference, t)e /arties agreed to a sti/u"ation of facts *5 and for t)e tria" court to 5rst reso"3e t)e issue of infringe2ent *efore dis/osing of t)e c"ai2 for da2ages. After t)e tria" on t)e 2erits, on A/ri" DC, <EEC, t)e tria" court rendered its 6udg2ent 5nding t)us: ;HERE!ORE, /re2ises considered, t)e court )ere* orders t)at t)e co2/"aint 5"ed against defendants !e"icidad Ro*"es and Vood#i"" 4rading Co., Inc. s)a"" *e .ISMISSE.K t)at said /"ainti,s so"idari" rei2*urse defendant Ro*"es for &D@,@@@.@@ attorne8s fees and defendant Vood#i"" for &G,@@@.@@ attorne8s fees. &"ainti,s are "ia*"e for cost of suit. I4 IS SO OR.ERE.. .one in t)e Cit of Mani"a t)is DCrd da of A/ri", <EEC. %sYt+ MAR[IE R. ABRAHAM SINVSON Assisting Judge S. C. Ad2. Order No. <D>-ED ** On Ma <>, <EEC, /etitioners 5"ed t)eir notice of a//ea" #it) t)e tria" court *0 , and on Ju" <E, <EEC, t)e court directed its *ranc) c"er$ of court to for#ard a"" t)e records of t)e case to t)e Court of A//ea"s. *1 &age 01 of /* In t)e a//ea", /etitioners argued t)at t)e tria" court co2/"ete" disregarded t)eir e3idence and fu"" su*scri*ed to t)e argu2ents of res/ondent Ro*"es t)at t)e *oo$s in issue #ere /ure" t)e /roduct of )er researc)es and studies and t)at t)e co/ied /ortions #ere ins/ired * foreign aut)ors and as suc) not su*6ect to co/rig)t. &etitioners a"so assai"ed t)e 5ndings of t)e tria" court t)at t)e #ere ani2ated * *ad fait) in instituting t)e co2/"aint. */ On June DA, <EEA, t)e Court of A//ea"s rendered 6udg2ent in fa3or of res/ondents Ro*"es and Vood#i"" 4rading Co., Inc. 4)e re"e3ant /ortions of t)e decision state: It 2ust *e noted, )o#e3er, t)at si2i"arit of t)e a""eged" infringed #or$ to t)e aut)or8s or /ro/rietor8s co/rig)ted #or$ does not of itse"f esta*"is) co/rig)t infringe2ent, es/ecia"" if t)e si2i"arit resu"ts fro2 t)e fact t)at *ot) #or$s dea" #it) t)e sa2e su*6ect or )a3e t)e sa2e co22on source, as in t)is case. A//e""ee Ro*"es )as fu"" eL/"ained t)at t)e /ortion or 2ateria" of t)e *oo$ c"ai2ed * a//e""ants to )a3e *een co/ied or "ifted fro2 foreign *oo$s. S)e )as du" /ro3en t)at 2ost of t)e to/ics or 2ateria"s contained in )er *oo$, #it) /articu"ar reference to t)ose 2atters c"ai2ed * a//e""ants to )a3e *een /"agiari1ed #ere to/ics or 2atters a//earing not on" in a//e""ants and )er *oo$s *ut a"so in ear"ier *oo$s on Co""ege Eng"is), inc"uding foreign *oo$s, e.i. Ed2und Bur$e8s ZS/eec) on Conci"iationZ, Boerigs8 ZCo2/etence in Eng"is)Z and Broug)ton8s, ZEd2und Bur$e8s Co""ection.Z LLL LLL LLL A//e""ant8s re"iance on t)e "ast /aragra/) on Section II is 2is/"aced. It 2ust *e e2/)asi1ed t)at t)e fai"ed to /ro3e t)at t)eir *oo$s #ere 2ade sources * a//e""ee. *, 4)e Court of A//ea"s #as of t)e 3ie# t)at t)e a#ard of attornes8 fees #as not /ro/er, since t)ere #as no *ad fait) on t)e /art of /etitioners Ha*ana et al. in instituting t)e action against res/ondents. On Ju" <D, <EEA, /etitioners 5"ed a 2otion for reconsideration, *6 )o#e3er, t)e Court of A//ea"s denied t)e sa2e in a Reso"ution *< dated No3e2*er DG, <EEA. Hence, t)is /etition. In t)is a//ea", /etitioners su*2it t)at t)e a//e""ate court erred in aTr2ing t)e tria" court8s decision. &etitioners raised t)e fo""o#ing issues: %<+ #)et)er or not, des/ite t)e a//arent teLtua", t)e2atic and seIuentia" si2i"arit *et#een .E& and CE4, res/ondents co22itted no co/rig)t infringe2entK %D+ #)et)er or not t)ere #asanimus %urandi on t)e /art of res/ondent #)en t)e refused to #it)dra# t)e co/ies of CE4 fro2 t)e 2ar$et des/ite notice to #it)dra# t)e sa2eK and %C+ #)et)er or not res/ondent Ro*"es a*used a #riter8s rig)t to fair use, in 3io"ation of Section << of &residentia" .ecree No. >E. *+ ;e 5nd t)e /etition i2/ressed #it) 2erit. 4)e co2/"aint for co/rig)t infringe2ent #as 5"ed at t)e ti2e t)at &residentia" .ecree No. >E #as in force. At /resent, a"" "a#s dea"ing #it) t)e /rotection of inte""ectua" /ro/ert rig)ts )a3e *een conso"idated and as t)e "a# no# stands, t)e /rotection of co/rig)ts is go3erned * Re/u*"ic Act No. BDEC. Not#it)standing t)e c)ange in t)e "a#, t)e sa2e /rinci/"es are reiterated in t)e ne# "a# under Section <AA. It /ro3ides for t)e co/ or econo2ic rig)ts of an o#ner of a co/rig)t as fo""o#s: Sec. <AA. Copy or ?conomic rights. ^ Su*6ect to t)e /ro3isions of c)a/ter [III, co/rig)t or econo2ic rig)ts s)a"" consist of t)e eLc"usi3e rig)t to carr out, aut)ori1e or /re3ent t)e fo""o#ing acts: <AA.< Re/roduction of t)e #or$ or substanlial portion of t)e #or$K <AA.D .ra2ati1ation, trans"ation, ada/tation, a*ridge2ent, arrange2ent or ot)er transfor2ation of t)e #or$K <AA.C 4)e 5rst /u*"ic distri*ution of t)e origina" and eac) co/ of t)e #or$ * sa"e or ot)er for2s of transfer of o#ners)i/K <AA.> Renta" of t)e origina" or a co/ of an audio3isua" or cine2atogra/)ic #or$, a #or$ e2*odied in a sound recording, a co2/uter /rogra2, a co2/i"ation of data and ot)er 2ateria"s or a 2usica" #or$ in gra/)ic for2, &age 0/ of /* irres/ecti3e of t)e o#ners)i/ of t)e origina" or t)e co/ #)ic) is t)e su*6ect of t)e renta"K %n+ <AA.G &u*"ic dis/"a of t)e origina" or co/ of t)e #or$K <AA.J &u*"ic /erfor2ance of t)e #or$K and <AA.A Ot)er co22unication to t)e /u*"ic of t)e #or$ *. 4)e "a# a"so /ro3ided for t)e "i2itations on co/rig)t, t)us: Sec. <B>.< Limitations on copyright. ^ Not#it)standing t)e /ro3isions of C)a/ter [, t)e fo""o#ing acts s)a"" not constitute infringe2ent of co/rig)t: %a+ t)e recitation or /erfor2ance of a #or$, once it )as *een "a#fu"" 2ade accessi*"e to t)e /u*"ic, if done /ri3ate" and free of c)arge or if 2ade strict" for a c)arita*"e or re"igious institution or societK OSec. <@%<+, &... No. >EP %*+ 4)e 2a$ing of Iuotations fro2 a /u*"is)ed #or$ if t)e are co2/ati*"e #it) fair use and on" to t)e eLtent 6usti5ed for t)e /ur/ose, inc"uding Iuotations fro2 ne#s/a/er artic"es and /eriodica"s in t)e for2 of /ress su22ariesK +rovided, t)at t)e source and t)e na2e of t)e aut)or, if a//earing on t)e #or$ are 2entionedK %Sec. << t)ird /ar. &... >E+ LLL LLL LLL %e+ The inclusion o% a &ork in a publication, *roadcast, or ot)er co22unication to t)e /u*"ic, sound recording of 5"2, if suc) inc"usion is 2ade * #a of i""ustration for teac)ing /ur/oses and is co2/ati*"e #it) fair use: +rovided, That the source and the name o% the author! i% appearing in the &ork is mentionedK 05 In t)e a*o3e Iuoted /ro3isions, Z#or$Z )as reference to "iterar and artistic creations and t)is inc"udes *oo$s and ot)er "iterar, sc)o"ar" and scienti5c #or$s. 0* A /erusa" of t)e records ie"ds se3era" /ages of t)e *oo$ .E& t)at are si2i"ar if not identica" #it) t)e teLt of CE4. On /age >@> of /etitioners8 Boo$ < of Co""ege Eng"is) for 4oda, t)e aut)ors #rote: Items in dates and addresses: He died on Monda, A/ri" <G, <EAG. Miss Rees "i3es in D<> 4aft A3enue, Mani"a 00 On /age AC of res/ondents Boo$ < .e3e"o/ing Eng"is) 4oda, t)e #rote: He died on Monda, A/ri" DG, <EAG. Miss Rees address is D<> 4aft A3enue Mani"a 01 On &age DG@ of CE4, t)ere is t)is eLa2/"e on /ara""e"is2 or re/etition of sentence structures, t)us: 4)e /ro/osition is /eace. Not /eace t)roug) t)e 2ediu2 of #arK not /eace to *e )unted t)roug) t)e "a*rint) of intricate and end"ess negotiationsK not /eace to arise out of uni3ersa" discord, fo2ented fro2 /rinci/"e, in a"" /arts of t)e e2/ireK not /eace to de/end on t)e 6uridica" deter2ination of /er/"eLing Iuestions, or t)e /recise 2ar$ing of t)e *oundar of a co2/"eL go3ern2ent. It is si2/"e /eaceK soug)t in its natura" course, and in its ordinar )aunts. It is /eace soug)t in t)e s/irit of /eace, and "aid in /rinci/"es /ure" /aci5c. ^ Ed2und Bur$e, ZS/eec) on Criticis2.Z 0/ On /age <@@ of t)e *oo$ .E& 0, , a"so in t)e to/ic of /ara""e" structure and re/etition, t)e sa2e eLa2/"e is found in toto. 4)e on" di,erence &age 0, of /* is t)at /etitioners ac$no#"edged t)e aut)or Ed2und Bur$e, and res/ondents did not. In se3era" ot)er /ages 06 t)e treat2ent and 2anner of /resentation of t)e to/ics of .E& are si2i"ar if not a re)as) of t)at contained in CE4. ;e *e"ie3e t)at res/ondent Ro*"es8 act of "ifting fro2 t)e *oo$ of /etitioners su*stantia" /ortions of discussions and eLa2/"es, and )er fai"ure to ac$no#"edge t)e sa2e in )er *oo$ is an infringe2ent of /etitioners8 co/rig)ts. ;)en is t)ere a su*stantia" re/roduction of a *oo$_ It does not necessari" reIuire t)at t)e entire co/rig)ted #or$, or e3en a "arge /ortion of it, *e co/ied. If so 2uc) is ta$en t)at t)e 3a"ue of t)e origina" #or$ is su*stantia"" di2inis)ed, t)ere is an infringe2ent of co/rig)t and to an in6urious eLtent, t)e #or$ is a//ro/riated. 0< In deter2ining t)e Iuestion of infringe2ent, t)e a2ount of 2atter co/ied fro2 t)e co/rig)ted #or$ is an i2/ortant consideration. 4o constitute infringe2ent, it is not necessar t)at t)e #)o"e or e3en a "arge /ortion of t)e #or$ s)a"" )a3e *een co/ied. If so 2uc) is ta$en t)at t)e 3a"ue of t)e origina" is sensi*" di2inis)ed, or t)e "a*ors of t)e origina" aut)or are su*stantia"" and to an in6urious eLtent a//ro/riated * anot)er, t)at is suTcient in /oint of "a# to constitute /irac. 0+ 4)e essence of inte""ectua" /irac s)ou"d *e essaed in conce/tua" ter2s in order to underscore its gra3it * an a//ro/riate understanding t)ereof. Infringe2ent of a co/rig)t is a tres/ass on a /ri3ate do2ain o#ned and occu/ied * t)e o#ner of t)e co/rig)t, and, t)erefore, /rotected * "a#, and infringe2ent of co/rig)t, or /irac, #)ic) is a snon2ous ter2 in t)is connection, consists in t)e doing * an /erson, #it)out t)e consent of t)e o#ner of t)e co/rig)t, of ant)ing t)e so"e rig)t to do #)ic) is conferred * statute on t)e o#ner of t)e co/rig)t. 0. 4)e res/ondents8 c"ai2 t)at t)e co/ied /ortions of t)e *oo$ CE4 are a"so found in foreign *oo$s and ot)er gra22ar *oo$s, and t)at t)e si2i"arit *et#een )er st"e and t)at of /etitioners can not *e a3oided since t)e co2e fro2 t)e sa2e *ac$ground and orientation 2a *e true. Ho#e3er, in t)is 6urisdiction under Sec <B> of Re/u*"ic Act BDEC it is /ro3ided t)at: 0i2itations on Co/rig)t. Not#it)standing t)e /ro3isions of C)a/ter [, t)e fo""o#ing s)a"" not constitute infringe2ent of co/rig)t: LLL LLL LLL %c+ 4)e 2a$ing of Iuotations fro2 a /u*"is)ed #or$ if t)e are co2/ati*"e #it) fair use and on" to t)e eLtent 6usti5ed for t)e /ur/ose, inc"uding Iuotations fro2 ne#s/a/er artic"es and /eriodica"s in t)e for2 of /ress su22aries: +rovided, 4)at t)e source and t)e na2e of t)e aut)or, if a//earing on t)e #or$, are 2entioned. A co/ of a /irac is an infringe2ent of t)e origina", and it is no defense t)at t)e /irate, in suc) cases, did not $no# #)et)er or not )e #as infringing an co/rig)tK )e at "east $ne# t)at #)at )e #as co/ing #as not )is, and )e co/ied at )is /eri". 15 4)e neLt Iuestion to reso"3e is to #)at eLtent can co/ing *e in6urious to t)e aut)or of t)e *oo$ *eing co/ied. Is it enoug) t)at t)ere are si2i"arities in so2e sections of t)e *oo$s or "arge seg2ents of t)e *oo$s are t)e sa2e_ In t)e case at *ar, t)ere is no Iuestion t)at /etitioners /resented se3era" /ages of t)e *oo$s CE4 and .E& t)at 2ore or "ess )ad t)e sa2e contents. It 2a *e correct t)at t)e *oo$s *eing gra22ar *oo$s 2a contain 2ateria"s si2i"ar as to so2e tec)nica" contents #it) ot)er gra22ar *oo$s, suc) as t)e seg2ent a*out t)e ZAut)or CardZ. Ho#e3er, t)e nu2erous /ages t)at t)e /etitioners /resented s)o#ing si2i"arit in t)e st"e and t)e 2anner t)e *oo$s #ere /resented and t)e identica" eLa2/"es can not /ass as si2i"arities 2ere" *ecause of tec)nica" consideration. 4)e res/ondents c"ai2 t)at t)eir si2i"arit in st"e can *e attri*uted to t)e fact t)at *ot) of t)e2 #ere eL/osed to t)e A&CAS s""a*us and t)eir res/ecti3e acade2ic eL/erience, teac)ing a//roac) and 2et)odo"og are a"2ost identica" *ecause t)e #ere of t)e sa2e *ac$ground. Ho#e3er, #e *e"ie3e t)at e3en if /etitioners and res/ondent Ro*"es #ere of t)e sa2e *ac$ground in ter2s of teac)ing eL/erience and orientation, it is not an eLcuse for t)e2 to *e identica" e3en in eLa2/"es contained in t)eir *oo$s. 4)e si2i"arities in eLa2/"es and 2ateria" contents are so o*3ious" /resent in t)is case. Ho# can si2i"arYidentica" eLa2/"es not *e considered as a 2ar$ of co/ing_ &age 06 of /* ;e consider as an indicia of gui"t or #rongdoing t)e act of res/ondent Ro*"es of /u""ing out fro2 Vood#i"" *oo$stores t)e *oo$ .E& u/on "earning of /etitioners8 co2/"aint #)i"e /)arisaica"" dening /etitioners8 de2and. It #as furt)er noted t)at #)en t)e *oo$ .E& #as re-issued as a re3ised 3ersion, a"" t)e /ages cited * /etitioners to contain /ortion of t)eir *oo$ Co""ege Eng"is) for 4oda #ere e"i2inated. In cases of infringe2ent, co/ing a"one is not #)at is /ro)i*ited. 4)e co/ing 2ust /roduce an Zin6urious e,ectZ. Here, t)e in6ur consists in t)at res/ondent Ro*"es "ifted fro2 /etitioners8 *oo$ 2ateria"s t)at #ere t)e resu"t of t)e "atter8s researc) #or$ and co2/i"ation and 2isre/resented t)e2 as )er o#n. S)e circu"ated t)e *oo$ .E& for co22ercia" use did not ac$no#"edged /etitioners as )er source. Hence, t)ere is a c"ear case of a//ro/riation of co/rig)ted #or$ for )er *ene5t t)at res/ondent Ro*"es co22itted. &etitioners8 #or$ as aut)ors is t)e /roduct of t)eir "ong and assiduous researc) and for anot)er to re/resent it as )er o#n is in6ur enoug). In co/rig)ting *oo$s t)e /ur/ose is to gi3e /rotection to t)e inte""ectua" /roduct of an aut)or. 4)is is /recise" #)at t)e "a# on co/rig)t /rotected, under Section <B>.< %*+. Ruotations fro2 a /u*"is)ed #or$ if t)e are co2/ati*"e #it) fair use and on" to t)e eLtent 6usti5ed * t)e /ur/ose, inc"uding Iuotations fro2 ne#s/a/er artic"es and /eriodica"s in t)e for2 of /ress su22aries are a""o#ed /ro3ided t)at t)e source and t)e na2e of t)e aut)or, if a//earing on t)e #or$, are 2entioned. In t)e case at *ar, t)e "east t)at res/ondent Ro*"es cou"d )a3e done #as to ac$no#"edge /etitioners Ha*ana et.al. as t)e source of t)e /ortions of .E&. 4)e 5na" /roduct of an aut)or8s toi" is )er *oo$. 4o a""o# anot)er to co/ t)e *oo$ #it)out a//ro/riate ac$no#"edg2ent is in6ur enoug). ;HERE!ORE, t)e /etition is )ere* VRAN4E.. 4)e decision and reso"ution of t)e Court of A//ea"s in CA-V. R. C[ No. >>@GC are SE4 ASI.E. 4)e case is ordered re2anded to t)e tria" court for furt)er /roceedings to recei3e e3idence of t)e /arties to ascertain t)e da2ages caused and sustained * /etitioners and to render decision in accordance #it) t)e e3idence su*2itted to it. SO OR.ERE.. 0apunan and @nares6Santiago! AA.! concur. .avide! Ar.! C.A.! I dissent! please see dissenting opinion. Melo! A.! no part! personal reason.
Separate Opinions
AJI$, J#., C.J., dissenting o/inion: I a2 una*"e to 6oin t)e 2a6orit 3ie#. !ro2 t)e fo""o#ing factua" and /rocedura" antecedents, I 5nd no a"ternati3e *ut to sustain *ot) t)e tria" court and t)e Court of A//ea"s. On <D Ju" <EBB, HABANA, et al. 5"ed #it) t)e tria" court a co2/"aint for infringe2ent and unfair co2/etition, #it) da2ages against /ri3ate res/ondent !e"icidad C. Ro*"es %)ereafter ROB0ES+ and )er /u*"is)er and distri*utor, Vood#i"" 4rading Co., Inc. %)ereafter VOO.;I00+. 4)e case #as doc$eted as Ci3i" Case No. BB-<C<A. HABANA, et al. a3erred in t)eir co2/"aint t)at t)e #ere t)e co- aut)ors and 6oint co/rig)t o#ners of t)eir /u*"is)ed #or$s Co""ege Eng"is) for 4oda, Boo$s < and D %)ereafter CE4+ and ;or$*oo$ for Co""ege !res)2an Eng"is), Series < * K t)e disco3ered t)at ROB0ES8 o#n /u*"is)ed #or$s, .e3e"o/ing Eng"is) &ro5cienc, Boo$s < and D, %)ereafter .E&+, /u*"is)ed and distri*uted in <EBG, eL)i*ited an uncann rese2*"ance, if not outrig)t /)sica" si2i"arit, to CE4 as to content, sc)e2e, seIuence of to/ics and ideas, 2anner of /resentation and i""ustrati3e eLa2/"esK t)e /"agiaris2, incor/oration and re/roduction of /articu"ar /ortions of CE4 into .E& cou"d not *e gainsaid since ROB0ES #as su*stantia"" fa2i"iar #it) CE4 and t)e teLtua" as/ortation #as acco2/"is)ed #it)out t)eir aut)orit andYor consentK ROB0ES and VOO.;I00 6oint" 2isre/resented .E& %o3er #)ic) t)e s)ared co/rig)t o#ners)i/+ Zas t)e for2er8s origina" /u*"is)ed #or$s and conce/tKZ and Znot#it)standing for2a" de2ands 2ade . . . to cease and desist fro2 t)e sa"e and distri*ution of .E&, OROB0ES and VOO.;I00P /ersistent" fai"ed and refused to co2/" t)ere#it).Z HABANA et al. t)en /raed for t)e court to: %<+ order t)e su*2ission and t)ereafter t)e destruction of a"" co/ies of .E&, toget)er #it) t)e 2o"ds, /"ates, 5"2s and ot)er 2ateria"s used in t)e &age 0< of /* /rinting t)ereofK %D+ reIuire ROB0ES and VOO.;I00 to render an accounting of t)e sa"es of t)e Zinfringing #or$s fro2 t)e ti2e of its %sic+ ince/ti3e /u*"ication u/ to t)e ti2e of 6udg2ent, as #e"" as t)e a2ount of sa"es and /ro5ts . . . deri3edKZ and %C+ to en6oin ROB0ES and VOO.;I00 to so"idari" /a actua", 2ora" and eLe2/"ar da2ages, as #e"" as attorne8s fees and eL/enses of "itigation. In its Ans#er, VOO.;I00 denied cu"/a*i"it since Zit )ad no $no#"edge or infor2ation suTcient to for2 a *e"ief as to t)e a""egations of /"agiaris2, incor/oration and re/roductionZ and )ence Zcou"d not *e /ri3 to t)e sa2e, if %t)ere #ere+ anKZ and t)at in an Agree2ent #it) co-defendant ROB0ES, t)e "atter #ou"d *e so"e" res/onsi*"e for acts of /"agiaris2 or 3io"ations of co/rig)t or an ot)er "a#, to t)e eLtent of ans#ering for an and a"" da2ages VOO.;I00 2a su,er. VOO.;I00 a"so inter/osed a co2/u"sor counterc"ai2 against &ACI4A, et al. and a crossc"ai2 against its co-defendant anc)ored on t)e afore2entioned Agree2ent. In )er ans#er, ROB0ES asserted t)at: %<+ .E& #as t)e eLc"usi3e /roduct of )er inde/endent researc), studies and eL/erienceK %D+ .E&, /articu"ar" t)e seg2ents #)ere t)e a""eged "itera" si2i"itude a//eared, #ere ad2itted" inQuenced or ins/ired * ear"ier treatises, 2ost" * foreign aut)orsK *ut t)at ZinQuences andYor ins/irations fro2 ot)er #ritersZ "i$e t)e 2et)odo"og and tec)niIues as to /resentation, teac)ing conce/t and design, researc) and orientation #)ic) s)e e2/"oed, fe"" #it)in t)e a2*it of genera" infor2ation, ideas, /rinci/"es of genera" or uni3ersa" $no#"edge #)ic) #ere co22on" and custo2ari" understood as inca/a*"e of /ri3ate and eLc"usi3e use, a//ro/riation or co/rig)tK and %C+ )er #or$s #ere t)e resu"t of t)e "egiti2ate and reasona*"e eLercise of an aut)or8s Zrig)t to fair use of e3en co/rig)ted 2ateria"s as OaP guide.Z S)e furt)er c"ai2ed t)at )er 3arious nationa" and regiona" /rofessiona" acti3ities in genera" education, "anguage and "iterature, as #e"" as )er teac)ing eL/erience in graduate and /ost graduate education #ou"d o*3iate t)e re2otest /ossi*i"it of /"agiaris2. ROB0ES "i$e#ise suggested t)at an si2i"arit *et#een .E& and CE4 as regards sco/e and seIuence cou"d *e attri*uted to Zt)e orientation of t)e aut)ors to t)e sco/e and seIuence or s""a*us ^ #)ic) incor/orates standards $no#n a2ong Eng"is) gra22ar *oo$ #riters ^ of t)e su*6ect-2atter for Basic Co22unication Arts reco22ended * t)e Association of &)i"i//ine Co""eges of Arts and Sciences %A&CAS+.Z ;)i"e t)e s""a*us #as ad2itted" ado/ted in .E&, s)e c"ai2ed to )a3e treated Iuite di,erent" in .E& t)e 3er ideas, tec)niIues or /rinci/"es eL/ressed in CE4 suc) t)at neit)er teLt*oo$ cou"d *e considered a co/ or /"agiaris2 of t)e ot)er. At t)e /re-tria" conference, t)e /arties agreed to a sti/u"ation of facts 0 and for t)e court to 5rst reso"3e t)e issue of infringe2ent *efore dis/osing of t)e c"ai2s for da2ages. After tria" on t)e 2erits, t)e tria" court rendered its decision in fa3or of defendants, t)e dis/ositi3e /ortion of #)ic) reads: ;HERE!ORE, /re2ises considered, t)e Court )ere* orders t)at t)e co2/"aint 5"ed against defendants !e"icidad Ro*"es and Vood#i"" 4rading Co., Inc. s)a"" *e .ISMISSE.: t)at said /"ainti,s so"idari" rei2*urse defendant Ro*"es for &D@,@@@.@@ attorne8s fees and defendant Vood#i"" for &G,@@@.@@ attorne8s fees. &"ainti,s are "ia*"e for costs of suit. I4 IS SO OR.ERE.. 1 Noting t)at t)e "a# a//"ica*"e to t)e case #as &residentia" .ecree No. >E, / t)e tria" court found t)at HABANA, et al. fai"ed to disc)arge t)eir onus of /ro3ing t)at ROB0ES and VOO.;I00 co22itted acts constituting co/rig)t infringe2ent. Moreo3er, t)e tria" court found t)at Zt)e cause of action or acts co2/"ained of O#ereP not co3ered * said decreeZ as Section <@ t)ereof *arred aut)ors of #or$s a"read "a#fu"" 2ade accessi*"e to t)e /u*"ic fro2 /ro)i*iting t)e re/roductions, trans"ations, ada/tations, recitation and /erfor2ance of t)e sa2e, #)i"e Section << a""o#ed t)e uti"i1ation of re/roductions, Iuotations and eLcer/ts of suc) #or$s. 4)e tria" court t)us agreed #it) ROB0ES t)at Zt)e co2/"ained acts O#ereP of genera" and uni3ersa" $no#"edge and use #)ic) /"ainti,s cannot c"ai2 origina"it or see$ redress to t)e "a# for /rotectionZ and o*ser3ed t)at .E& and CE4 )ad t)e sa2e sources, consisting c)ieQ of ear"ier #or$s, 2ost" foreign *oo$s. VOO.;I008s crossc"ai2 against ROB0ES, counterc"ai2 against HABANA, et al. as #e"" as ROB0ES8 co2/u"sor counterc"ai2 against VOO.;I00 #ere a"" dis2issed for "ac$ of factua" and "ega" *ases. HABANA, et al. a//ea"ed to t)e Court of A//ea"s. 4)e case #as doc$eted as CA-V.R. C[ No. >>@GC. Before said court HABANA, et al., in t)e 2ain, argued t)at t)e tria" court tota"" disregarded t)eir e3idence and 2ere" su*scri*ed to ROB0ES8 argu2ents. 4)e Court of A//ea"s, )o#e3er, "i$e#ise dis/osed of t)e contro3ers in fa3or of ROB0ES and VOO.;I00. , Ho#e3er, t)e Court of A//ea"s 2odi5ed t)e tria" court8s decision * re3ersing t)e a#ard for attorne8s fees. It )e"d t)at t)e good fait) and sincerit of HABANA, et al. in co22encing t)e action negated t)e *asis t)erefor. 4)eir 2otion for reconsideration )a3ing *een denied for #ant of cogent reasons, HABANA, et al., instituted t)is /etition. 4)e &age 0+ of /* c"ai2 t)at t)e Court of A//ea"s co22itted re3ersi*"e error in fai"ing to a//reciate: %<+ t)e insu/era*"e e3idence and facts ad2itted and /ro3ed de2onstrating /"agiaris2 or /irac and instead a,orded fu"" #eig)t and credit to ROB0ES8 2atriL of genera", )/ot)etica" and s#ee/ing state2ents andYor defensesK %D+ ROB0ES8 and VOO.;I008s animo %urandi or intent to a//ro/riate or co/ CE4 #it) t)e non-re2o3a" of t)e da2aging co/ies of .E& fro2 t)e *oo$stores des/ite notice to #it)dra# t)e sa2eK and %C+ t)e fact t)at ROB0ES a*used a #riter8s rig)t to fair use, in 3io"ation of Section << of &... No. >E. 6 4)e in3o$e Lakta& v. +aglina&an < #)ic), t)e t)eori1e is on a"" fours #it) t)e case at *ar. ROB0ES contends t)at a//ea" * certiorari does not "ie in t)is case for t)e c)a""enged decision and t)e tria" court8s 6udg2ent #ere a2/" su//orted * e3idence, /ertinent "a#s and 6uris/rudence. Hence, )er counterc"ai2 for 2ora" da2ages s)ou"d, t)erefore, *e granted or for us to order t)e re2and of t)e case to t)e tria" court for rece/tion of e3idence on da2ages. VOO.;I00, on its /art, stood /at on its disc"ai2er, #it) t)e assertion t)at no /roof #as e3er introduced. t)at it co-aut)ored .E& or t)at it sing" or in ca*a" #it) ROB0ES co22itted an act constituting co/rig)t infringe2ent. 4)e core issue t)en is #)et)er or not t)e Court of A//ea"s erred in aTr2ing t)e tria" court8s 6udg2ent t)at des/ite t)e a//arent teLtua", t)e2atic and seIuentia" si2i"arit *et#een .E& and CE4, no co/rig)t #as co22itted * ROB0ES and VOO.;I00. ;)i"e t)e co2/"aint, in Ci3i" Case No. BB-<C<A #as 5"ed during t)e e,ecti3it of &... No. >E, t)e /ro3isions of t)e ne# inte""ectua" /ro/ert "a#, R.A. No. BDEC, + ne3ert)e"ess *ears signi5cance )ere. It too$ e,ect on < Januar <EEB, *ut its Section DCE.C c"ear" states t)at its /ro3isions s)a"" a//" to #or$s in #)ic) co/rig)t /rotection o*tained /rior to t)e e,ecti3it of t)e Act su*sists, /ro3ided, )o#e3er, t)at t)e a//"ication of t)e Act s)a"" not resu"t in t)e di2inution of suc) /rotection. A"so, t)e /)i"oso/) *e)ind *ot) statutes as #e"" as t)e essentia" /rinci/"es of co/rig)t /rotection and co/rig)t infringe2ent )a3e, to a certain eLtent, re2ained t)e sa2e. A co/rig)t 2a *e accurate" de5ned as t)e rig)t granted * statute to t)e /ro/rietor of an inte""ectua" /roduction to its eLc"usi3e use and en6o2ent to t)e eLtent s/eci5ed in t)e statute. . 7nder Section <AA of R.A. No. BDEC, *5 t)e co/ or econo2ic rig)t %co/rig)t and econo2ic rig)t are used interc)angea*" in t)e statute+ consists of t)e eLc"usi3e rig)t to carr out, aut)ori1e or /re3ent t)e fo""o#ing acts: <AA.< Re/roduction of t)e #or$ or su*stantia" /ortion of t)e #or$K <AA.D .ra2ati1ation, trans"ation, ada/tation, a*ridg2ent, arrange2ent or ot)er transfor2ation of t)e #or$K <AA.C 4)e 5rst /u*"ic distri*ution of t)e origina" and eac) co/ of t)e #or$ * sa"e or ot)er for2s of transfer of o#ners)i/K <AA.> Renta" of t)e origina" or a co/ of an audio3isua" or cine2atogra/)ic #or$, a #or$ e2*odied in a sound recording, a co2/uter /rogra2, a co2/i"ation of data and ot)er 2ateria"s or a 2usica" #or$ in gra/)ic for2, irres/ecti3e of t)e o#ners)i/ of t)e origina" or t)e co/ #)ic) is t)e su*6ect of t)e renta"K <AA.G &u*"ic dis/"a of t)e origina" or a co/ of t)e #or$K <AA.J &u*"ic /erfor2ance of t)e #or$K and <AA.A Ot)er co22unication to t)e /u*"ic of t)e #or$. Z4)e #or$,Z as re/eated" 2entioned, refers to t)e "iterar and artistic #or$s de5ned as origina" inte""ectua" creations in t)e "iterar and artistic do2ain /rotected fro2 t)e 2o2ent of t)eir creation and enu2erated in Section <AD.<, #)ic) inc"udes *oo$s and ot)er "iterar, sc)o"ar", scienti5c and artistic #or$s. ** Stri//ed in t)e 2eanti2e of its indis/uta*"e socia" and *ene5cia" functions, *0 t)e use of inte""ectua" /ro/ert or creations s)ou"d *asica"" /ro2ote t)e creator or aut)or8s /ersona" and econo2ic gain. Hence, t)e co/rig)t /rotection eLtended to t)e creator s)ou"d ensure )is attain2ent of so2e for2 of /ersona" satisfaction and econo2ic re#ard fro2 t)e #or$ )e /roduced. ;it)out conceding t)e suita*i"it of 0a$ta# as /recedent, t)e Court t)ere Iuoted Manresa and eL/"ained: He #)o #rites a *oo$, or car3es a statute, or 2a$es an in3ention, )as t)e a*so"ute rig)t to re/roduce or se"" it, 6ust as t)e o#ner of t)e "and )as t)e a*so"ute rig)t to se"" it or its fruits. But #)i"e t)e o#ner of t)e "and, * se""ing it and its fruits, /er)a/s fu"" rea"i1es a"" its econo2ic 3a"ue, * recei3ing its *ene5ts and uti"ities, #)ic) are re/resented for eLa2/"e, * t)e /rice, on t)e ot)er )and t)e aut)or of a *oo$, statue or in3ention does not rea/ a"" t)e *ene5ts and &age 0. of /* ad3antages of )is o#n /ro/ert * dis/osing of it, for t)e 2ost i2/ortant for2 of rea"i1ing t)e econo2ic ad3antages of a *oo$, statue or in3ention, consists in t)e rig)t to re/roduce it in si2i"ar or "i$e co/ies, e3erone of #)ic) ser3es to gi3e to t)e /erson re/roducing t)e2 a"" t)e conditions #)ic) t)e origina" reIuires in order to gi3e t)e aut)or t)e fu"" en6o2ent t)ereof. If t)e aut)or of a *oo$, after its /u*"ication, cannot /re3ent its re/roduction * an /erson #)o 2a #ant to re/roduce it, t)en t)e /ro/ert rig)t granted )i2 is reduced to a 3er insigni5cant t)ing and t)e e,ort 2ade in t)e /roduction of t)e *oo$ is in no #a re#arded. *1 4)e eLecution, t)erefore, of an one or 2ore of t)e eLc"usi3e rig)ts conferred * "a# on a co/rig)t o#ner, #it)out )is consent, constitutes co/rig)t infringe2ent. In essence, co/rig)t infringe2ent, $no#n in genera" as Z/irac,Z is a tres/ass on a do2ain o#ned and occu/ied * a co/rig)t o#nerK it is 3io"ation of a /ri3ate rig)t /rotected * "a#. */ ;it) t)e in3asion of )is /ro/ert rig)ts, a co/rig)t o#ner is natura"" entit"ed to see$ redress, enforce and )o"d accounta*"e t)e defrauder or usur/er of said econo2ic rig)ts. No#, did ROB0ES and VOO.;I00 infringe u/on t)e co/rig)t of HABANA et al. * /u*"is)ing .E&, #)ic) t)e "atter a""eged to *e a re/roduction, or in t)e "east, a su*stantia" re/roduction of CE4_ Bot) t)e tria" court and res/ondent court found in t)e negati3e. I su*2it t)e #ere correct. 4o constitute infringe2ent, t)e usur/er 2ust )a3e co/ied or a//ro/riated t)e Zorigina"Z #or$ of an aut)or or co/rig)t /ro/rietorK *, a*sent co/ing, t)ere can *e no infringe2ent of co/rig)t. *6 In turn, a #or$ is dee2ed * "a# an origina" if t)e aut)or created it * )is o#n s$i"", "a*or and 6udg2ent. *< On its /art, a co/ is t)at #)ic) co2es so near to t)e origina" so as to gi3e to e3er /erson seeing it t)e idea created * t)e origina". It )as *een )e"d t)at t)e test of co/rig)t infringe2ent is #)et)er an ordinar o*ser3er co2/aring t)e #or$s can readi" see t)at one )as *een co/ied fro2 t)e ot)er. *+ A 3isua" co2/arison of t)e /ortions of CE4 *. 6uLta/osed against certain /ages of .E&, 05 #ou"d inesca/a*" "ead to a conc"usion t)at t)ere is a discerni*"e si2i"arit *et#een t)e t#oK )o#e3er, as correct" assessed * res/ondent court and t)e "o#er court, no conc"usion, can *e dra#n t)at .E&, in "ega" conte2/"ation, is a co/ of CE4. ;as .E& a su*stantia" re/roduction of CE4_ 4o constitutes a su*stantia" re/roduction, it is not necessar t)at t)e entire co/rig)ted #or$, or e3en a "arge /ortion of it, *e co/ied, if so 2uc) is ta$en t)at t)e 3a"ue of t)e origina" is su*stantia"" di2inis)ed, or if t)e "a*ors of t)e origina" aut)or are su*stantia"", and to an in6urious eLtent, a//ro/riated. 0* But t)e si2i"arit of t)e *oo$s )ere does not a2ount to an a//ro/riation of a su*stantia" /ortion of CE4. If t)e eListence of su*stantia" si2i"arities does not of itse"f esta*"is) infringe2ent, 00 2ere si2i"arities %not su*stantia" si2i"arities+ in so2e sections of t)e *oo$s in Iuestion decisi3e" 2i"itate against a c"ai2 for infringe2ent #)ere t)e si2i"arities )ad *een con3incing" esta*"is)ed as /roceeding fro2 a nu2*er of reasons andYor factors. <. As *ot) *oo$s are gra22ar *oo$s, t)e ine3ita*" dea" #it) t)e sa2e su*6ects t/ica"" and ordinari" treated * #riters of suc) genre, 01 e.g., sste2 of *oo$ c"assi5cation, t)e di,erent $inds of card cata"ogs and t)eir entries, use of /unctuation 2ar$s, /aragra/)s, t)e c)aracteristics of an e,ecti3e /aragra/), "anguage structure, di,erent /arts of a *oo$, etc. 4)ese standard su*6ects fa"" #it)in t)e do2ain of ideas, conce/ts, uni3ersa" and genera" $no#"edge t)at )a3e, as ad2itted * t)e /rotagonists )ere, *een in eListence for Iuite a "ong ti2e. 0/ As suc), HABANA, et al. cannot de2and 2ono/o", * #a of eLa2/"e, in t)e use of t)e recogni1ed "i*rar c"assi5cation sste2s %.e#e .eci2a" Sste2 and t)e 0i*rar of Congress Sste2+, or )o# a *oo$ can *e di3ided into /arts %frontis/iece, tit"e /age, co/rig)t /age, /reface, ta*"e of contents, etc.+ or to t)e di,erent )eadings used in a card cata"ogue %tit"e card, aut)or card and su*6ect card+, since t)ese are of co22on or genera" $no#"edge. E3en in t)is 6urisdiction, no /rotection can *e eLtended to suc) an idea, /rocedure, sste2 2et)od or o/eration, conce/t, /rinci/"e, disco3er or 2ere data, e3en if eL/ressed, eL/"ained, i""ustrated or e2*odied in a #or$. 0, D. As found * res/ondent court, CE4 and .E& )ad co22on sources and 2ateria"s, 06 suc) t)at t)e /articu"ar /ortions c"ai2ed to )a3e *een "ifted and "itera"" re/roduced a"so a//eared in ear"ier #or$s, 2ost" * foreign aut)ors. 4)is is c"ear fro2 t)e testi2on of /etitioner .r. &acita Ha*ana: R 0et8s c"arif our /osition .ra. Ha*ana. ;)en defendants test %sic+ s)o#ed <@ #ords si2i"ar to ours, ou so conc"uded it #as %sic+ co/ied fro2 ours *ut #)en I /ointed out to ou sa2e %sic+ #ords contained in t)e ear"ier *oo$ of ;i""s t)en ou ear"ier in our test in our *oo$ %sic+ ou refused to ad2it t)at it #as co/ied fro2 ;i""s. A Yes, sir. ;e )a3e ne3er ^ a"" CG #ords #ere co/ied fro2 t)ere. &age 15 of /* R But #)at I a2 as$ing )o# cou"d ou conc"ude t)at * 6ust si2i"arit of <@ #ords of defendants #ords t)at #as co/ied fro2 ours OsicP and #)en I /oint out to ou t)e si2i"arit of t)at sa2e #ords fro2 t)e #ords ear"ier t)an ours %sic+ ou refused to ad2it t)at ou co/ied_ A I #ou"d "i$e to c)ange t)e 5na" state2ent no# t)at in t)e case of defendant Ro*"es ou /ointed out )er source 3er c"ear. S)e co/ied it fro2 t)at *oo$ * ;i""s. R So, s)e did not co/ it fro2 ours_ A A"rig)t, 2a*e s)e did not co/ it *ut de5nite" it is a /attern of /"ageris2 OsicP. 0< C. Si2i"arit in orientation and st"e can "i$e#ise *e attri*uted to t)e eL/osure of t)e aut)ors to t)e A&CAS s""a*us and t)eir res/ecti3e acade2ic eL/erience, teac)ing a//roac)es and 2et)odo"og. It is not farfetc)ed t)at t)e cou"d )a3e e3en inQuenced eac) ot)er as teLt*oo$ #riters. ROB0ES and .r. &acita Ha*ana #ere facu"t 2e2*ers of t)e Institute of Eng"is) of t)e !ar Eastern 7ni3ersit fro2 <EJ> to <EA>. 0+ Bot) #ere ardent students, researc)ers, "ecturers, teLt*oo$ #riters and teac)ers of Eng"is) and gra22ar. 4)e e3en used to *e on friend" ter2s #it) eac) ot)er, to t)e eLtent t)at .r. Ha*ana ad2itted t)at ROB0ES assisted t)e for2er in t)e /re/aration of )er doctora" dissertation. Vi3en t)eir near-identica" acade2ic and /rofessiona" *ac$ground, it is natura" t)e #ou"d use 2an eL/ressions and de5nitions /ecu"iar to teac)ing Eng"is) gra22ar. It co2es t)erefore #it) no sur/rise t)at t)ere are si2i"arities in so2e /arts of t)e ri3a" *oo$s. Indeed, it is diTcu"t to concei3e )o# #riters on t)e sa2e su*6ect 2atter can 3er #e"" a3oid resorting to co22on sources of infor2ation and 2ateria"s and e2/"oing si2i"ar eL/ressions and ter2s /ecu"iar to t)e su*6ect t)e are treating. 0. 4o i""ustrate, an eLcer/t fro2 /age D< of CE4 reads: Aut)or Card 4)e aut)or card is t)e 2ain entr card. It contains <. t)e aut)or8s co2/"ete na2e on t)e 5rst "ine, surna2e 5rst, #)ic) 2a *e fo""o#ed * t)e date of )is *irt) and deat) if )e is no "onger "i3ingK D. t)e tit"e of t)e *oo$, and t)e su*tit"e, if t)ere is oneK C. t)e edition, if it is not t)e 5rstK >. t)e trans"ator or i""ustrator, if t)ere is anK G. t)e i2/rint #)ic) inc"udes t)e /u*"is)er, t)e /"ace and date of /u*"icationK J. t)e co""ation co2/osed of t)e nu2*er of /ages, 3o"u2e, i""ustrations, and t)e si1e of t)e *oo$K A. t)e su*6ects #it) #)ic) t)e *oo$ dea"s OsicPK B. t)e ca"" nu2*er on t)e u//er "eft- )and corner. Na2es *eginning #it) Mc, or M are 5"ed in t)e card cata"og as t)oug) s/e""ed out as MAC, for eLa2/"e Mc Vra# ^ MacVra#. 4)e sa2e is true of St. and Saint. ;)i"e a /ortion of .E& found on /age <B #)ic) discusses t)e aut)or card /ro3ides: 4)e aut)or card is t)e 2ain entr card containing: <. t)e aut)or8s co2/"ete na2e on t)e 5rst "ine, surna2e 5rst, #)ic) 2a *e fo""o#ed * t)e date of )is *irt) and deat) if )e is no "onger "i3ingK D. t)e tit"e of t)e *oo$, and t)e su*tit"e if t)ere is oneK &age 1* of /* C. t)e edition, if it is not t)e 5rstK >. t)e trans"ator or i""ustrator, if anK G. t)e i2/rint #)ic) inc"udes t)e /u*"is)er, t)e /"ace and date of /u*"icationK J. t)e co""ation, co2/osed of t)e nu2*er of /ages, 3o"u2e, i""ustrations, and t)e si1e of t)e *oo$K A. t)e su*6ect #it) #)ic) t)e *oo$ dea"sK and B. t)e ca"" nu2*er on t)e u//er-"eft )and corner. Na2es *eginning #it) MC, or M are 5"ed in t)e card cata"og considered s/e""ed out as MAC, for eLa2/"e: Mc"eod-Mac"eod. 4)is is true a"so of St. and Saint. 4)e entries found in an aut)or card, )a3ing *een de3e"o/ed o3er Iuite so2eti2e, are eL/ected" unifor2. Hence, HABANA et al. and ROB0ES #ou"d )a3e no c)oice *ut to articu"ate t)e ter2s /articu"ar to t)e entries in an identica" 2anner. I t)us 5nd t)at t)e ru"ing of t)e res/ondent court is tota"" su//orted * t)e e3idence on record. Of doctrina" /ersuasion is t)e /rinci/"e t)at factua" deter2inations of t)e Court of A//ea"s and t)e tria" court are conc"usi3e and *inding u/on t)is Court, and t)e "atter #i"" not, as a ru"e, distur* t)ese 5ndings un"ess co2/e""ing and cogent reasons necessitate a reeLa2ination, if not a re3ersa", of t)e sa2e. 15 4ested against t)is 6uris/rudentia" canon, to su*6ect t)e c)a""enged decision of t)e Court of A//ea"s to furt)er scrutin #ou"d *e su/erQuous, if not, i2/ro3ident. I a2 not /ersuaded * t)e c"ai2 of HABANA, et al. t)at 0a$ta# is on a"" fours #it) and )ence a//"ica*"e to t)e case at *ar. 4)ere, t)is Court dis/osed t)at defendant, #it)out t)e consent of and causing irre/ara*"e da2age to 0a$ta#, re/roduced t)e "atter8s "iterar #or$ .iccionario Hisa/ano-4aga"og, and i2/ro/er" co/ied t)e greater /art t)ereof in t)e #or$ .iccionariong 'asti"a-4aga"og /u*"is)ed * defendant, in 3io"ation of Artic"e A of t)e 0a# of <@ Januar <BAE on Inte""ectua" &ro/ert. 4)is Court anc)ored its decision on t)e fo""o#ing o*ser3ations: %<+ OOP t)e DC,GJ@ S/anis) #ords in t)e defendant8s dictionar . . . on" C,<@B #ords are t)e defendant8s o#n, or, #)at is t)e sa2e t)ing, t)e defendant )as added on" t)is nu2*er of #ords to t)ose t)at are in t)e /"ainti,8s dictionar, )e )a3ing re/roduced or co/ied t)e re2aining D@,>GD #ordsK %D+ O4P)e defendant a"so "itera"" re/roduced and co/ied for t)e S/anis) #ords in )is dictionar, t)e eIui3a"ents, de5nitions and di,erent 2eanings in 4aga"og, gi3en in /"ainti,s dictionar, )a3ing re/roduced, as to so2e #ords, e3ert)ing t)at a//ears in t)e /"ainti,8s dictionar for si2i"ar S/anis) #ords, a"t)oug) as to so2e )e 2ade so2e additions of )is o#n. Said co/ies and re/roductions are nu2erous. . .K %C+ O4P)e /rinter8s errors in t)e /"ainti,8s dictionar as to t)e eL/ression of so2e #ords in S/anis) as #e"" as t)eir eIui3a"ents in 4aga"og are a"so re/roduced, a fact #)ic) s)o#s t)at t)e defendant, in /re/aring )is dictionar, "itera"" co/ied t)ose S/anis) #ords and t)eir 2eanings and eIui3a"ents in 4aga"og fro2 t)e /"ainti,8s dictionar. 1* &"ain", t)e rationa"e in 0a$ta# does not a//" in t)is case. !irst, aside fro2 an iso"ated accounting of t)e nu2*er of #ords su//osed" usur/ed in a seg2ent of .E& fro2 CE4, 10 t)e records do not disc"ose t)at a"" t)e #ords a""eged" co/ied #ere ta""ied and t)at t)e #ords t)us ta""ied #ere nu2erous enoug) to su//ort a 5nding of co/ing. Second, as a"read conceded, #)i"e t)ere is an identit in t)e 2anner * #)ic) so2e of t)e ideas and conce/ts #ere articu"ated, t)is /rescinded fro2 3arious factors a"read e"ucidated. Besides, ROB0ES8 testi2on t)at s)e 2ade an inde/endent in3estigation or researc) of t)e origina" #or$s or aut)ors s)e consu"ted #as unre*uttedK 11 for ger2ane )ere is t)e Iuestion of #)et)er t)e a""eged infringer cou"d )a3e o*tained t)e sa2e infor2ation * going to t)e sa2e source * )er o#n inde/endent researc). 1/ ROB0ES con3inced t)e tria" court and t)e Court of A//ea"s on t)isK t)us, #e are *ound * t)is factua" deter2ination, as "i$e#ise eL/"ained ear"ier. 4)ird, re/roduction of t)e /rinter8s errors or t)e aut)or8s *"unders and inaccuracies in t)e infringing co/ does not ipso %acto constitute co/ing or /"agiaris2 or infringe2ent, *ut it is conceded t)at t)e are te""ta"e signs t)at infringe2ent 2ig)t )a3e *een co22itted. 1, Ho#e3er, t)e records do &age 10 of /* not re3ea" t)is to *e t)e case. !ourt), t)e "a# on inte""ectua" /ro/ert 3io"ated in 0a$ta# #as a #or"d and ti2e a/art fro2 R.A. No. BDEC or e3en &... No. >E. 4)us, under Artic"e A of t)e 0a# of <@ Januar <BAE, t)e Court ru"ed t)at no*od cou"d re/roduce anot)er /erson8s #or$ #it)out t)e o#ner8s consent, e3en 2ere" to annotate or add ant)ing to it, or i2/ro3e an edition t)ereof. 4)e 2ore recent "a#s on inte""ectua" /ro/ert, )o#e3er, recogni1e recent ad3ance2ents in tec)no"og transfer and infor2ation disse2ination. 4)e t)us a""o# t)e use of co/rig)ted 2ateria"s if co2/ati*"e #it) fair use and to t)e eLtent 6usti5ed for t)e /ur/ose. In /articu"ar, t)e ne# "a#s sanction t)e fair use of co/rig)ted #or$ for criticis2, co22ent, ne#s re/orting, teac)ing inc"uding 2u"ti/"e co/ies for c"assroo2 use, sc)o"ars)i/, researc) and si2i"ar /ur/oses. 16 !urt)er, t)e "i2itations of t)e eLc"usi3e use of co/rig)ted 2ateria"s under Sections <@ and << of &... No. >E in consonance #it) t)e /rinci/"e of fair use )a3e *een re/roduced and incor/orated in t)e ne# "a#. 1< A"" to"d, 0a$ta# is ina//"ica*"e.12&phi1.n>t !air use )as *een de5ned as a /ri3i"ege to use t)e co/rig)ted 2ateria" in a reasona*"e 2anner #it)out t)e consent of t)e co/rig)t o#ner or as co/ing t)e t)e2e or ideas rat)er t)an t)eir eL/ression. 1+ No Iuestion of fair or unfair use arises )o#e3er, if no co/ing is /ro3ed to *egin #it). 4)is is in consonance #it) t)e /rinci/"e t)at t)ere can *e no infringe2ent if t)ere #as no co/ing. 1. It is on" #)ere so2e for2 of co/ing )as *een s)o#n t)at it *eco2es necessar to deter2ine #)et)er it )as *een carried to an Zunfair,Z t)at is, i""ega", eLtent. /5 ConseIuent", t)ere is no reason to address t)e issue of #)et)er ROB0ES a*used a #riter8s rig)t to fair use #it) t)e ascertain2ent t)at .E& #as not a co/ or a su*stantia" co/ of CE4. ;HERE!ORE, I 3ote to .ENY t)e /etition and to A!!IRM t)e c)a""enged decision of DA June <EEA of t)e Court of A//ea"s. 4.#. No. */<5/1 June 0*, 055, NGI - %IC#OSOET CO#PO#ATION 7 LOTUS $J$LOP%$NT CO#P., /etitioners, 3s. JU& C. 9)AN4, G$NITO ;$9 7 &JONN$ ;. C9UAKG$LT#ON CO%PUT$# P9ILIPPIN$S INC., JONAT9AN ;. C9UA, $%IL& ;. C9UA, G$NITO T. SANC9$H, NANC& I. J$LASCO, ALEONSO C9UA, ALG$#TO C9UA, SOP9IA ON4, $ANNA C9UAKTAI)AN %AC9IN$#& ISPLA& 7 T#A$ C$NT$#, INC., and T9$ S$C#$TA#& OE JUSTIC$, res/ondents. . E C I S I O N CA#PIO, J.: 4)e Case 4)is is a /etition for certiorari < of t)e Reso"utions D of t)e .e/art2ent of Justice dis2issing for Z"ac$ of 2erit and insuTcienc of e3idenceZ /etitioner Microsoft Cor/orationWs co2/"aint against res/ondents for co/rig)t infringe2ent and unfair co2/etition. 4)e !acts &etitioner Microsoft Cor/oration %ZMicrosoftZ+, a .e"a#are, 7nited States cor/oration, o#ns t)e co/rig)t and trade2ar$ to se3era" co2/uter soft#are. C Res/ondents Benito 'e) and Y3onne 'e) are t)e &residentYManaging .irector and Venera" Manager, res/ecti3e", of res/ondent Be"tron Co2/uter &)i"i//ines, Inc. %ZBe"tronZ+, a do2estic cor/oration. Res/ondents Jonat)an '. C)ua, E2i" '. C)ua, Benito 4. Sanc)e1, and Nanc I. [e"asco are Be"tronWs .irectors. On t)e ot)er )and, res/ondents A"fonso C)ua, A"*erto C)ua, Jud '. C)ua H#ang, So/)ia Ong, and .eanna C)ua are t)e .irectors of res/ondent 4ai#an Mac)iner .is/"a ( 4rade Center, Inc. %Z4M4CZ+, a"so a do2estic cor/oration. > In Ma <EEC, Microsoft and Be"tron entered into a 0icensing Agree2ent %ZAgree2entZ+. 7nder Section D%a+ of t)e Agree2ent, as a2ended in Januar <EE>, Microsoft aut)ori1ed Be"tron, for a fee, to: %i+ LLL re/roduce and insta"" no 2ore t)an one %<+ co/ of OMicrosoftP soft#are on eac) Custo2er Sste2 )ard dis$ or Read On" Me2or %ZROMZ+K OandP %ii+ LLL distri*ute direct" or indirect" and "icense co/ies of t)e &roduct %re/roduced as /er Section D%a+%i+ andYor acIuired fro2 Aut)ori1ed Re/"icator or Aut)ori1ed .istri*utor+ in o*6ect code for2 to end usersO.P LLLL G 4)e Agree2ent a"so aut)ori1ed Microsoft and Be"tron to ter2inate t)e contract if t)e ot)er fai"s to co2/" #it) an of t)e Agree2entWs /ro3isions. Microsoft ter2inated t)e Agree2ent e,ecti3e DD June <EEG for Be"tronWs non-/a2ent of roa"ties. J After#ards, Microsoft "earned t)at res/ondents #ere i""ega"" co/ing and se""ing Microsoft soft#are. ConseIuent", Microsoft, t)roug) its &age 11 of /* &)i"i//ine agent, A )ired t)e ser3ices of &in$erton Consu"ting Ser3ices %Z&CSZ+, a /ri3ate in3estigati3e 5r2. Microsoft a"so soug)t t)e assistance of t)e Nationa" Bureau of In3estigation %ZNBIZ+. On <@ No3e2*er <EEG, &CS e2/"oee Jo)n Benedic B Sacri1 %ZSacri1Z+ and NBI agent .o2inador Sa2iano, Jr. %ZSa2ianoZ+, /osing as re/resentati3es of a co2/uter s)o/, E *oug)t co2/uter )ard#are %centra" /rocessing unit %ZC&7Z+ and co2/uter 2onitor+ and soft#are %<D co2/uter dis$s %ZC.sZ+ in read-on" 2e2or %ZROMZ+ for2at+ fro2 res/ondents. 4)e C&7 contained /re-insta""ed <@ Microsoft ;indo#s C.< and MS-.OS soft#are. 4)e <D C.-ROMs, encased in /"astic containers #it) Microsoft /ac$aging, a"so contained Microsoft soft#are. << At "east t#o of t)e C.-ROMs #ere Zinsta""ers,Z so-ca""ed *ecause t)e contain se3era" soft#are %Microsoft on" or *ot) Microsoft and non- Microsoft+. <D Sacri1 and Sa2iano #ere not gi3en t)e Microsoft end-user "icense agree2ents, userWs 2anua"s, registration cards or certi5cates of aut)enticit for t)e artic"es t)e /urc)ased. 4)e recei/t issued to Sacri1 and Sa2iano for t)e C&7 and 2onitor *ore t)e )eading Z4.M.4.C. %&HI0S.+ INC. BE04RON COM&74ER.Z <C 4)e recei/t for t)e <D C.-ROMs did not indicate its source a"t)oug) t)e na2e ZVer"ieZ a//ears *e"o# t)e entr Zde"i3ered *.Z <> On <A No3e2*er <EEG, Microsoft a//"ied for searc) #arrants against res/ondents in t)e Regiona" 4ria" Court, Branc) DC, Mani"a %ZR4CZ+. <G 4)e R4C granted MicrosoftWs a//"ication and issued t#o searc) #arrants %ZSearc) ;arrant Nos. EG-JB> and EG-JBGZ+. <J 7sing Searc) ;arrant Nos. EG-JB> and EG-JBG, t)e NBI searc)ed t)e /re2ises of Be"tron and 4M4C and sei1ed se3era" co2/uter-re"ated )ard#are, soft#are, accessories, and /ara/)erna"ia. A2ong t)ese #ere 0,+1* pieces of C-#O%s containing Microsoft soft#are. <A Based on t)e artic"es o*tained fro2 res/ondents, Microsoft and a certain 0otus .e3e"o/2ent Cor/oration %Z0otus Cor/orationZ+ c)arged res/ondents *efore t)e .e/art2ent of Justice %Z.OJZ+ #it) co/rig)t infringe2ent under Section G%A+ in re"ation to Section DE of &residentia" .ecree No. >E, as a2ended, %Z&. >EZ+ <B and #it) unfair co2/etition under Artic"e <BE%<+ <E of t)e Re3ised &ena" Code. In its Co2/"aint %ZI.S. No. EJ-<ECZ+, #)ic) t)e NBI indorsed, Microsoft a""eged t)at res/ondents i""ega"" co/ied and so"d Microsoft soft#are. D@ In t)eir 6oint counter-aTda3it, res/ondents Y3onne 'e) %Zres/ondent 'e)Z+ and E2i" '. C)ua %Zres/ondent C)uaZ+ denied t)e c)arges against res/ondents. Res/ondents 'e) and C)ua a""eged t)at: %<+ MicrosoftWs rea" intention in 5"ing t)e co2/"aint under I.S. No. EJ-<EC #as to /ressure Be"tron to /a its a""eged un/aid roa"ties, t)us Microsoft s)ou"d )a3e 5"ed a co""ection suit instead of a cri2ina" co2/"aintK %D+ 4M4C *oug)t t)e con5scated GE *oLes of MS-.OS C.s fro2 a Microsoft dea"er in Singa/ore %R.R. .onne""+K %C+ res/ondents are not t)e ZsourceZ of t)e Microsoft ;indo#s C.< soft#are /re- insta""ed in t)e C&7 *oug)t * Sacri1 and Sa2iano, *ut on" of t)e MS- .OS soft#areK %>+ MicrosoftWs a""eged /roof of /urc)ase %recei/t+ for t)e <D C.-ROMs is inconc"usi3e *ecause t)e recei/t does not indicate its sourceK and %G+ res/ondents Benito 'e), Jonat)an '. C)ua, A"fonso C)ua, A"*erto C)ua, Jud '. C)ua H#ang, So/)ia Ong, and .eanna C)ua are stoc$)o"ders of Be"tron and 4M4C in na2e on" and t)us cannot *e )e"d cri2ina"" "ia*"e. D< 4)e ot)er res/ondents did not 5"e counter-aTda3its. Mean#)i"e, res/ondents 2o3ed to Iuas) Searc) ;arrant Nos. EG-JB> and EG-JBG. 4)e R4C /artia"" granted t)eir 2otion in its Order of <J A/ri" <EEJ. Microsoft soug)t reconsideration *ut t)e R4C denied MicrosoftWs 2otion in its Order of <E Ju" <EEJ. Microsoft a//ea"ed to t)e Court of A//ea"s in CA-V.R. C[ No. G>J@@. In its .ecision of DE No3e2*er D@@<, t)e Court of A//ea"s granted MicrosoftWs a//ea" and set aside t)e R4C Orders of <J A/ri" <EEJ and <E Ju" <EEJ. 4)e Court of A//ea"sW .ecision *eca2e 5na" on DA .ece2*er D@@<. 4)e .OJ Reso"utions In t)e Reso"ution of DJ Octo*er <EEE, .OJ State &rosecutor Joce"n A. Ong %ZState &rosecutor OngZ+ reco22ended t)e dis2issa" of MicrosoftWs co2/"aint for "ac$ of 2erit and insuTcienc of e3idence. State &rosecutor Ong a"so reco22ended t)e dis2issa" of 0otus Cor/orationWs co2/"aint for "ac$ of interest to /rosecute and for insuTcienc of e3idence. Assistant C)ief State &rosecutor 0ua")ati R. Buenafe %ZAssistant C)ief State &rosecutor BuenafeZ+ a//ro3ed State &rosecutor OngWs reco22endations. DD 4)e DJ Octo*er <EEE Reso"ution reads in /art: O4P#o %D+ issues )a3e to *e reso"3ed in t)is case, na2e": a+ ;)et)er or not Be"tron Co2/uter andYor its stoc$)o"ders s)ou"d *e )e"d "ia*"e for t)e o,enses c)arged. *+ ;)et)er or not /ri2a facie case eListOsP against 4ai#an Mac)iner .is/"a and 4rade Center, Inc. %4M4C+ for 3io"ation of t)e o,ense c)arged. Co2/"ainant )ad a""eged t)at fro2 t)e ti2e t)e "icense agree2ent #as ter2inated, res/ondentYs isYare no "onger aut)ori1ed to co/Ydistri*uteYse"" Microsoft /roducts. Ho#e3er, res/ondentYs a3erred t)at t)e case is ci3i" in nature, not cri2ina", considering t)at t)e case ste22ed on" out of t)e desire of co2/"ainant to co""ect fro2 t)e2 &age 1/ of /* t)e a2ount of 7S?<CG,<D<.CD and t)at t)e contract entered into * t)e /arties cannot *e uni"atera"" ter2inated. In t)e order of Honora*"e ;i""ia2 Ba)on dated Ju" <E, <EEJ Odening reconsideration to t)e Order /artia"" Iuas)ing t)e searc) #arrantsP, )e o*ser3ed t)e fo""o#ing: ZIt is furt)er argued * counse" for res/ondent t)at t)e act ta$en * /ri3ate co2/"ainant is to s/ite re3enge against t)e res/ondent Be"tron for t)e "atter fai"ed to /a t)e a""eged 2onetar o*"igation in t)e a2ount of 7S?<CG,<D<.CD. 4)at res/ondent )as so2e 2onetar o*"igation to co2/"ainant #)ic) is not denied * t)e co2/"ainant.Z OZPIt a//ears t)erefore t)at /rior to t)e issuance of t)e su*6ect searc) #arrants, co2/"ainant )ad so2e *usiness transactions #it) t)e res/ondent OBe"tronP a"ong t)e sa2e "ine of /roducts. Co2/"ainant fai"ed to re3ea" t)e true circu2stances eListing *et#een t)e t#o of t)e2 as it no# a//ears, indeed t)e searc) #arrantOsP LLL OareP *eing used as a "e3erage to secure co""ection of t)e 2one o*"igation #)ic) t)e Court cannot a""o#.Z !ro2 said order, it can *e g"eaned t)at t)e OR4CP LLL, )ad ad2itted t)at t)e searc) #arrants a//"ied for * co2/"ainant #ere 2ere" used as a "e3erage for t)e co""ection of t)e a""eged 2onetar o*"igation of t)e res/ondentYs. !ro2 said order, it can *e sur2ise %sic+ t)at t)e o*"igations *et#een t)e /arties is ci3i" in nature not cri2ina". Moreo3er, co2/"ainant )ad ti2e and again )ar/ed t)at res/ondentYs isYare not aut)ori1ed to se""Yco/Ydistri*ute Microsoft /roducts at t)e ti2e of t)e eLecution of t)e searc) #arrants. Sti"", t)is oTce )as no /o#er to /ass u/on said issue for one )as t)en to inter/ret t)e /ro3isions of t)e contract entered into * t)e /arties, #)ic) Iuestion, s)ou"d *e raised in a /ro/er ci3i" /roceeding. According", a*senOtP a reso"ution fro2 t)e /ro/er court of %sic+ #)et)er or not t)e contract is sti"" *inding *et#een t)e /arties at t)e ti2e of t)e eLecution of t)e searc) #arrants, t)is oTce cannot /ass u/on t)e issue of #)et)er res/ondentYs is or are "ia*"e for t)e o,ense c)arged. As to t)e second issue, #e 5nd for t)e res/ondentYs. 4M4C )ad /ro3ided suTcient e3idence suc) as /ro-for2a in3oice fro2 R.R. .onne""eK .e*t Ad3ice of t)e Ban$ of Co22erceK OTcia" Recei/ts fro2 t)e Bureau of Custo2sK and I2/ort Entr .ec"aration of t)e Bureau of Custo2s to /ro3e t)at indeed t)e Microsoft soft#are in t)eir /ossession #ere *oug)t fro2 Singa/ore. 4)us, res/ondentYs in t)is case )asY)a3e no intent to defraud t)e /u*"ic, as /ro3ided under Artic"e <BE of t)e Re3ised &ena" Code, for t)e *oug)t said Microsoft MS-.OS J.@ fro2 an a""eged "icensee of Microsoft in Singa/ore, #it) a"" t)e necessar /a/ers. In t)eir o/inion, #)at t)e )a3e are genuine Microsoft soft#are, t)erefore no unfair co2/etition eList. Moreo3er, 3io"ation of &... >E does not eList, for res/ondentYs #asY#ere not t)e 2anufacturers of t)e Microsoft soft#are sei1ed and #ere se""ing t)eir /roducts as genuine Microsoft soft#are, considering t)at t)e *oug)t it fro2 a Microsoft "icensee. Co2/"ainant, on t)e ot)er )and, considering t)at it )as t)e *urden of /ro3ing t)at t)e res/ondentYs isYare "ia*"e for t)e o,ense c)arged, )as not /resented an e3idence t)at t)e ite2s sei1ed na2e" t)e GE *oLes of MS-.OS J.@ soft#are are counterfeit. 4)e certi5cation issued on .ece2*er <D, <EEG * C)risto/)er Austin, Cor/orate Attorne of t)e co2/"ainant, does not disc"ose t)is fact. !or t)e ter2 used * Mr. Austin #as t)at t)e ite2s sei1ed #ere unaut)ori1ed. 4)e Iuestion no#, is #)et)er t)e /roducts #ere unaut)ori1ed *ecause 4M4C )as no "icense to se"" Microsoft /roducts, or is it unaut)ori1ed *ecause R.R. .onne""e )as no aut)orit to se"" said /roducts )ere in t)e &)i"i//ines. Sti"", to deter2ine t)e cu"/a*i"it of t)e res/ondents, co2/"ainant s)ou"d /resent e3idence t)at #)at is in t)e /ossession of t)e res/ondentYs isYare counterfeit Microsoft /roducts. 4)is it fai"ed to do. DC Microsoft soug)t reconsideration and /raed for an ocu"ar ins/ection of t)e artic"es sei1ed fro2 res/ondents. Ho#e3er, in t)e Reso"ution of C .ece2*er <EEE, Assistant C)ief State &rosecutor Buenafe, u/on State &rosecutor OngWs reco22endation, denied MicrosoftWs 2otion. D> Microsoft a//ea"ed to t)e OTce of t)e .OJ Secretar. In t)e Reso"ution of C August D@@@, .OJ 7ndersecretar Regis [. &uno dis2issed MicrosoftWs a//ea". DG Microsoft soug)t reconsideration *ut its 2otion #as denied in t)e Reso"ution of DD .ece2*er D@@@. DJ &age 1, of /* Hence, t)is /etition. Microsoft contends t)at: I. 4HE .OJ ERRE. IN R70INV 4HA4 4HE 0IABI0I4Y O! RES&ON.EN4S ;AS ON0Y CI[I0 IN NA47RE BY [IR47E O! 4HE 0ICENSE AVREEMEN4. II. 4HE .OJ MISA&&RECIA4E. 4HE !AC4 4HA4 RES&ON.EN4S ;ERE ENVAVE. IN 4HE I00EVA0 IM&OR4A4ION, SA0E AN. .IS4RIB74ION O! CO7N4ER!EI4 SO!4;ARE AS E[I.ENCE. BY 4HE I4EMS &7RCHASE. .7RINV 4HE 4ES4-B7Y AN. 4HE I4EMS SEIUE. !ROM RES&ON.EN4SW &REMISES. III. 4HE .OJ MISA&&RECIA4E. 4HE 0A; ON CO&YRIVH4 IN!RINVEMEN4 AN. 7N!AIR COM&E4I4ION. I[. ON0Y 4;O O74 O! 4HE NINE RES&ON.EN4S BO4HERE. 4O !I0E CO7N4ER-A!!I.A[I4SK HENCE, 4HE CHARVES AVAINS4 SE[EN ORES&ON.EN4SP REMAIN 7NCON4RO[ER4E.. DA In its Co22ent, 5"ed * t)e So"icitor Venera", t)e .OJ 2aintains t)at it did not co22it gra3e a*use of discretion in dis2issing MicrosoftWs co2/"aint. DB !or t)eir /art, res/ondents a""ege in t)eir Co22ent t)at Microsoft is gui"t of foru2-s)o//ing *ecause its /etition in CA-V.R. C[ No. G>J@@ #as 5"ed a)ead of, and )as a Zco22on interestZ #it), t)is /etition. On t)e 2erits, res/ondents reiterate t)eir c"ai2s in t)eir 2otion to Iuas) Searc) ;arrant Nos. EG-JB> and EG-JBG t)at t)e artic"es sei1ed fro2 t)e2 #ere eit)er o#ned * ot)ers, /urc)ased fro2 "egiti2ate sources, or not /roduced * Microsoft. Res/ondents a"so insist t)at t)e Agree2ent entit"ed Be"tron to Zco/ and re/"icate or re/roduceZ Microsoft /roducts. On t)e con5scated D,BC< C.-ROMs, res/ondents a""ege t)at a certain cor/oration DE "eft t)e C.-ROMs #it) t)e2 for safe$ee/ing. 0ast", res/ondents c"ai2 t)at t)ere is no /roof t)at t)e C&7 Sacri1 and Sa2iano *oug)t fro2 t)e2 contained /re-insta""ed Microsoft soft#are *ecause t)e recei/t for t)e C&7 does not indicate ZOsPoft#are )ard dis$.Z C@ In its Re/", Microsoft counters t)at it is not "ia*"e for foru2-s)o//ing *ecause its /etition in CA-V.R. C[ No. G>J@@ in3o"3ed t)e Orders of t)e R4C /artia"" Iuas)ing Searc) ;arrant Nos. EG-JB> and EG-JBG #)i"e t)is /etition concerns t)e .OJ Reso"utions dis2issing its co2/"aint against res/ondents for co/rig)t infringe2ent and unfair co2/etition. On t)e 2erits, Microsoft 2aintains t)at res/ondents s)ou"d *e indicted for co/rig)t infringe2ent and unfair co2/etition. C< 4)e Issues 4)e /etition raises t)e fo""o#ing issues: %<+ ;)et)er Microsoft engaged in foru2-s)o//ingK and %D+ ;)et)er t)e .OJ acted #it) gra3e a*use of discretion in not 5nding /ro*a*"e cause to c)arge res/ondents #it) co/rig)t infringe2ent and unfair co2/etition. 4)e Ru"ing of t)e Court 4)e /etition )as 2erit. Microsoft did not Engage in Forum-Shopping !oru2-s)o//ing ta$es /"ace #)en a "itigant 5"es 2u"ti/"e suits in3o"3ing t)e sa2e /arties, eit)er si2u"taneous" or successi3e", to secure a fa3ora*"e 6udg2ent. CD 4)us, it eLists #)ere t)e e"e2ents of litis pendentia are /resent, na2e": %a+ identit of /arties, or at "east suc) /arties #)o re/resent t)e sa2e interests in *ot) actionsK %*+ identit of rig)ts asserted and re"ief /raed for, t)e re"ief *eing founded on t)e sa2e factsK and %c+ t)e identit #it) res/ect to t)e t#o /receding /articu"ars in t)e t#o cases is suc) t)at an 6udg2ent t)at 2a *e rendered in t)e /ending case, regard"ess of #)ic) /art is successfu", #ou"d a2ount to res =udicata in t)e ot)er case. CC !oru2- s)o//ing is an act of 2a"/ractice *ecause it a*uses court /rocesses. C> 4o c)ec$ t)is /ernicious /ractice, Section G, Ru"e A of t)e <EEA Ru"es of Ci3i" &rocedure reIuires t)e /rinci/a" /art in an initiator /"eading to su*2it a certi5cation against foru2- s)o//ing. CG !ai"ure to co2/" #it) t)is reIuire2ent is a cause for t)e dis2issa" of t)e case and, in case of #i""fu" foru2-s)o//ing, for t)e i2/osition of ad2inistrati3e sanctions. Here, Microsoft correct" contends t)at it is not "ia*"e for foru2- s)o//ing. ;)at Microsoft a//ea"ed in CA-V.R. C[ No. G>J@@ #ere t)e R4C Orders /artia"" Iuas)ing Searc) ;arrant Nos. EG-JB> and EG-JBG. In t)e /resent case, Microsoft is a//ea"ing fro2 t)e .OJ Reso"utions dis2issing its co2/"aint against res/ondents for co/rig)t infringe2ent and unfair co2/etition. 4)us, a"t)oug) t)e /arties in CA- V.R. C[ No. G>J@@ and t)is /etition are identica", t)e rig)ts asserted and t)e re"iefs /raed for are not suc) t)at t)e 6udg2ent in CA-V.R. C[ No. G>J@@ does not a2ount to res =udicata in t)e /resent case. 4)is renders foru2-s)o//ing i2/ossi*"e )ere. The DOJ Acted ith !ra"e A#use of Discretion in not Finding $ro#a#%e Cause to Charge &espondents ith Cop'right (nfringement and )nfair Competition &age 16 of /* Venera"", t)is Court is "oat) to interfere in t)e /rosecutorWs discretion in deter2ining /ro*a*"e cause CJ ^ un"ess suc) discretion is s)o#n to )a3e *een a*used. CA 4)is case fa""s under t)e eLce/tion. 7n"i$e t)e )ig)er Iuantu2 of /roof *eond reasona*"e dou*t reIuired to secure a con3iction, it is t)e "o#er standard of /ro*a*"e cause #)ic) is a//"ied during t)e /re"i2inar in3estigation to deter2ine #)et)er t)e accused s)ou"d *e )e"d for tria". 4)is standard is 2et if t)e facts and circu2stances incite a reasona*"e *e"ief t)at t)e act or o2ission co2/"ained of constitutes t)e o,ense c)arged. As #e eL/"ained in $i%api% ". Sandigan#a'an: CB 4)e ter2 O/ro*a*"e causeP does not 2ean Zactua" and /ositi3e causeZ nor does it i2/ort a*so"ute certaint. It is 2ere" *ased on o/inion and reasona*"e *e"ief. 4)us, a 5nding of /ro*a*"e cause does not reIuire an inIuir into #)et)er t)ere is suTcient e3idence to /rocure a con3iction. It is enoug) t)at it is *e"ie3ed t)at t)e act or o2ission co2/"ained of constitutes t)e o,ense c)arged. &recise", t)ere is a tria" for t)e rece/tion of e3idence of t)e /rosecution in su//ort of t)e c)arge. $D *+ and Artic%e ,-+.,/ Section G CE of &. >E %ZSection GZ+ enu2erates t)e rig)ts 3ested eLc"usi3e" on t)e co/rig)t o#ner. Contrar to t)e .OJWs ru"ing, t)e gra3a2en of co/rig)t infringe2ent is not 2ere" t)e unaut)ori1ed Z2anufacturingZ of inte""ectua" #or$s *ut rat)er t)e unaut)ori1ed /erfor2ance of an of t)e acts co3ered * Section G. Hence, an /erson #)o /erfor2s an of t)e acts under Section G #it)out o*taining t)e co/rig)t o#nerWs /rior consent renders )i2se"f ci3i"" >@ and cri2ina"" >< "ia*"e for co/rig)t infringe2ent. ;e )e"d in Co%um#ia $ictures, (nc. ". Court of Appea%s: >D Infringe2ent of a co/rig)t is a tres/ass on a /ri3ate do2ain o#ned and occu/ied * t)e o#ner of t)e co/rig)t, and, t)erefore, /rotected * "a#, and infringe2ent of co/rig)t, or /irac, #)ic) is a snon2ous ter2 in t)is connection, consists in t)e doing * an /erson, #it)out t)e consent of t)e o#ner of t)e co/rig)t, of ant)ing t)e so"e rig)t to do #)ic) is conferred * statute on t)e o#ner of t)e co/rig)t. %E2/)asis su//"ied+ Signi5cant", under Section G%A+, a co/rig)t o#ner is 3ested #it) t)e eLc"usi3e rig)t to Zco/, distri*ute, 2u"ti/", OandP se""Z )is inte""ectua" #or$s. On t)e ot)er )and, t)e e"e2ents of unfair co2/etition under Artic"e <BE%<+ >C of t)e Re3ised &ena" Code are: %a+ 4)at t)e o,ender gi3es )is goods t)e genera" a//earance of t)e goods of anot)er 2anufacturer or dea"erK %*+ 4)at t)e genera" a//earance is s)o#n in t)e %<+ goods t)e2se"3es, or in t)e %D+ #ra//ing of t)eir /ac$ages, or in t)e %C+ de3ice or #ords t)erein, or in %>+ an ot)er feature of t)eir a//earanceOKP %c+ 4)at t)e o,ender o,ers to se"" or se""s t)ose goods or gi3es ot)er /ersons a c)ance or o//ortunit to do t)e sa2e #it) a "i$e /ur/oseOK andP %d+ 4)at t)ere is actua" intent to decei3e t)e /u*"ic or defraud a co2/etitor. >> 4)e e"e2ent of intent to decei3e 2a *e inferred fro2 t)e si2i"arit of t)e goods or t)eir a//earance. >G On the Su0cienc' of E"idence to Support a Finding of $ro#a#%e Cause Against &espondents In its /"eadings 5"ed #it) t)e .OJ, Microsoft in3o$ed t)ree c"usters of e3idence to su//ort its co2/"aint against res/ondents, na2e": %<+ t)e <D C.-ROMs containing Microsoft soft#are Sacri1 and Sa2iano *oug)t fro2 res/ondentsK %D+ t)e C&7 #it) /re-insta""ed Microsoft soft#are Sacri1 and Sa2iano a"so /urc)ased fro2 res/ondentsK and %C+ t)e D,BC< C.-ROMs containing Microsoft soft#are sei1ed fro2 res/ondents. >J 4)e .OJ, on t)e one )and, refused to /ass u/on t)e re"e3ance of t)ese /ieces of e3idence *ecause: %<+ t)e Zo*"igations *et#een t)e /arties is ci3i" and not cri2ina"Z considering t)at Microsoft 2ere" soug)t t)e issuance of Searc) ;arrant Nos. EG-JB> and EG-JBG to /ressure Be"tron to /a its o*"igation under t)e Agree2ent, and %D+ t)e 3a"idit of MicrosoftWs ter2ination of t)e Agree2ent 2ust 5rst *e reso"3ed * t)e Z/ro/er court.Z On t)e ot)er )and, t)e .OJ ru"ed t)at Microsoft fai"ed to /resent e3idence /ro3ing t)at #)at #ere o*tained fro2 res/ondents #ere counterfeit Microsoft /roducts. 4)is is gra3e a*use of discretion. >A &age 1< of /* #irst. Being t)e co/rig)t and trade2ar$ o#ner of Microsoft soft#are, Microsoft acted #e"" #it)in its rig)ts in 5"ing t)e co2/"aint under I.S. No. EJ-<EC *ased on t)e incri2inating e3idence o*tained fro2 res/ondents. Hence, it #as )ig)" irregu"ar for t)e .OJ to )o"d, *ased on t)e R4C Order of <E Ju" <EEJ, t)at Microsoft soug)t t)e issuance of Searc) ;arrant Nos. EG-JB> and EG-JBG, and * inference, t)e 5"ing of t)e co2/"aint under I.S. No. EJ-<EC, 2ere" to /ressure Be"tron to /a its o3erdue roa"ties to Microsoft. Signi5cant", in its .ecision in CA-V.R. C[ No. G>J@@ dated DE No3e2*er D@@<, t)e Court of A//ea"s set aside t)e R4C Order of <E Ju" <EEJ. Res/ondents no "onger contested t)at ru"ing #)ic) *eca2e 5na" on DA .ece2*er D@@<. Second. 4)ere is no *asis for t)e .OJ to ru"e t)at Microsoft 2ust a#ait a /rior Zreso"ution fro2 t)e /ro/er court of %sic+ #)et)er or not t)e OAgree2entP is sti"" *inding *et#een t)e /arties.Z Be"tron )as not 5"ed an suit to Iuestion MicrosoftWs ter2ination of t)e Agree2ent. Microsoft can neit)er *e eL/ected nor co2/e""ed to #ait unti" Be"tron decides to sue *efore Microsoft can see$ re2edies for 3io"ation of its inte""ectua" /ro/ert rig)ts. !urt)er2ore, so2e of t)e counterfeit C.-ROMs *oug)t fro2 res/ondents #ere Zinsta""erZ C.-ROMs containing Microsoft soft#are on" or *ot) Microsoft and non-Microsoft soft#are. 4)ese artic"es are counterfeit per se *ecause Microsoft does not %and cou"d not )a3e aut)ori1ed anone to+ /roduce suc) C.-ROMs. 4)e co/ing of t)e genuine Microsoft soft#are to /roduce t)ese fa$e C.-ROMs and t)eir distri*ution are i""ega" e3en if t)e co/ier or distri*utor is a Microsoft "icensee. As far as t)ese insta""er C.-ROMs are concerned, t)e Agree2ent %and t)e a""eged Iuestion on t)e 3a"idit of its ter2ination+ is i22ateria" to t)e deter2ination of res/ondentsW "ia*i"it for co/rig)t infringe2ent and unfair co2/etition. 0ast", Section <@%*+ >B of t)e Agree2ent /ro3ides t)at MicrosoftWs Zrig)ts and re2ediesZ under t)e contract are Znot LLL eLc"usi3e and are in addition to an ot)er rig)ts and re2edies /ro3ided * "a# or Ot)eP Agree2ent.Z 4)us, e3en if t)e Agree2ent sti"" su*sists, Microsoft is not /rec"uded fro2 see$ing re2edies under &. >E and Artic"e <BE%<+ of t)e Re3ised &ena" Code to 3indicate its rig)ts. Third. 4)e Court 5nds t)at t)e <D C.-ROMs %Zinsta""erZ and Znon-insta""erZ+ and t)e C&7 #it) /re-insta""ed Microsoft soft#are Sacri1 and Sa2iano *oug)t fro2 res/ondents and t)e D,BC< Microsoft C.-ROMs sei1ed fro2 res/ondents suTce to su//ort a 5nding of /ro*a*"e cause to indict res/ondents for co/rig)t infringe2ent under Section G%A+ in re"ation to Section DE of &. >E for unaut)ori1ed co/ing and se""ing of /rotected inte""ectua" #or$s. 4)e insta""er C.-ROMs #it) Microsoft soft#are, to re/eat, are counterfeit per se. On t)e ot)er )and, t)e i""ega"it of t)e Znon-insta""erZ C.-ROMs /urc)ased fro2 res/ondents and of t)e Microsoft soft#are /re- insta""ed in t)e C&7 is s)o#n * t)e a*sence of t)e standard features acco2/aning aut)entic Microsoft /roducts, na2e", t)e Microsoft end-user "icense agree2ents, userWs 2anua"s, registration cards or certi5cates of aut)enticit. On t)e D,BC< Microsoft C.-ROMs >E sei1ed fro2 res/ondents, res/ondent Be"tron, t)e on" res/ondent #)o #as /art to t)e Agree2ent, cou"d not )a3e re/roduced t)e2 under t)e Agree2ent as t)e So"icitor Venera" G@ and res/ondents contend. Be"tronWs rig)ts G< under t)e Agree2ent #ere "i2ited to: %<+ t)e Zre/roducOtionP and insta""Oation ofP no 2ore t)an one cop( of OMicrosoftP soft#are on eac) Custo2er Sste2 )ard dis$ or Read On" Me2or %ZROMZ+ZK and %D+ t)e Zdistri*utOionP LLL and "icensOing ofP co/ies of t)e OMicrosoftP &roduct Las reproduced a'o!eM andKor acBuired from Aut"oriNed #eplicator or Aut"oriNed istri'utor: in o'@ect code form to end users.Z 4)e Agree2ent de5nes an aut)ori1ed re/"icator as Za t)ird /art a//ro3ed * OMicrosoftP #)ic) 2a re/roduce and 2anufacture OMicrosoftP &roductOsP for OBe"tronP LLL.Z GD An aut)ori1ed distri*utor, on t)e ot)er )and, is a Zt)ird /art a//ro3ed * OMicrosoftP fro2 #)ic) OBe"tronP 2a /urc)ase ME. GC &roduct.Z G> Being a 2ere re/roducerYinsta""er of one Microsoft soft#are co/ on eac) custo2erWs )ard dis$ or ROM, Be"tron cou"d on" )a3e acIuired t)e )undreds of Microsoft C.-ROMs found in res/ondentsW /ossession fro2 Microsoft distri*utors or re/"icators. Ho#e3er, res/ondents 2a$es no suc) c"ai2. ;)at res/ondents contend is t)at t)ese C.-ROMs #ere "eft to t)e2 for safe$ee/ing. But neit)er is t)is c"ai2 tena*"e for "ac$ of su*stantiation. Indeed, res/ondents 'e) and C)ua, t)e on" res/ondents #)o 5"ed counter- aTda3its, did not 2a$e t)is c"ai2 in t)e .OJ. 4)ese circu2stances gi3e rise to t)e reasona*"e inference t)at res/ondents 2ass-/roduced t)e C.-ROMs in Iuestion #it)out securing MicrosoftWs /rior aut)ori1ation. &age 1+ of /* 4)e counterfeit Znon-insta""erZ C.-ROMs Sacri1 and Sa2iano *oug)t fro2 res/ondents a"so suTce to su//ort a 5nding of /ro*a*"e cause to indict res/ondents for unfair co2/etition under Artic"e <BE%<+ of t)e Re3ised &ena" Code for /assing o, Microsoft /roducts. !ro2 t)e /ictures of t)e C.-ROMsW /ac$aging, GG one cannot distinguis) t)e2 fro2 t)e /ac$aging of C.-ROMs containing genuine Microsoft soft#are. Suc) re/"ication, cou/"ed #it) t)e si2i"arit of content of t)ese fa$e C.-ROMs and t)e C.-ROMs #it) genuine Microsoft soft#are, i2/"ies intent to decei3e. Res/ondentsW contention t)at t)e <D C.-ROMs Sacri1 and Sa2iano /urc)ased cannot *e traced to t)e2 *ecause t)e recei/t for t)ese artic"es does not indicate its source is una3ai"ing. 4)e recei/t in Iuestion s)ou"d *e ta$en toget)er #it) MicrosoftWs c"ai2 t)at Sacri1 and Sa2iano *oug)t t)e C.-ROMs fro2 res/ondents. GJ 4oget)er, t)ese considerations /oint to res/ondents as t)e 3endor of t)e counterfeit C.-ROMs. Res/ondents do not gi3e an reason #) t)e Court s)ou"d not gi3e credence to MicrosoftWs c"ai2. !or t)e sa2e reason, t)e fact t)at t)e recei/t for t)e C&7 does not indicate ZOsPoft#are )ard dis$Z does not 2ean t)at t)e C&7 )ad no /re-insta""ed Microsoft soft#are. Res/ondents 'e) and C)ua ad2it in t)eir counter-aTda3it t)at res/ondents are t)e ZsourceZ of t)e /re-insta""ed MS-.OS soft#are. )9$#$EO#$, #e VRAN4 t)e /etition. ;e SE4 ASI.E t)e Reso"utions dated DJ Octo*er <EEE, C .ece2*er <EEE, C August D@@@, and DD .ece2*er D@@@ of t)e .e/art2ent of Justice. SO OR.ERE.. 4.#. No. *6,156 Septem'er 05, 055, %ANL& SPO#T)$A# %ANUEACTU#IN4, INC., &etitioners, 3s. AO$TT$ $NT$#P#IS$S ANKO# 9$#%$S SPO#TS C$NT$#, Res/ondent. .ECISION &NA#$S-SANTIA4O, J.: 4)is /etition for re3ie# on certiorari < under Ru"e >G of t)e Re3ised Ru"es of Ci3i" &rocedure assai"s t)e Ju" <C, D@@> decision D of t)e Court of A//ea"s C in CA-V.R. S& No. AEBBA and its Se/te2*er <G, D@@> reso"ution > dening reconsideration t)ereof. 4)e facts are as fo""o#s: On Marc) <>, D@@C, S/ecia" In3estigator E"ie1er &. Sa"cedo of t)e Nationa" Bureau of In3estigation %NBI+ a//"ied for a searc) #arrant *efore t)e Regiona" 4ria" Court %R4C+ of Rue1on Cit, *ased on t)e infor2ation t)at .adodette Enter/rises andYor Her2es S/orts Center #ere in /ossession of goods, t)e co/rig)t of #)ic) *e"onged to Man" S/orts#ear Mfg., Inc. %MAN0Y+. G After 5nding reasona*"e grounds t)at a 3io"ation of Sections <AD and D<A of Re/u*"ic Act %RA+ No. BDEC J )as *een co22itted, Judge Estre""a 4. Estrada of R4C-Rue1on Cit, Branc) BC, issued on Marc) <A, D@@C Searc) ;arrant No. >@>>%@C+. A Res/ondents t)ereafter 2o3ed to Iuas) and annu" t)e searc) #arrant contending t)at t)e sa2e is in3a"id since t)e reIuisites for its issuance )a3e not *een co2/"ied #it). 4)e insisted t)at t)e s/orting goods 2anufactured * andYor registered in t)e na2e of MAN0Y are ordinar and co22on )ence, not a2ong t)e c"asses of #or$ /rotected under Section <AD of RA BDEC. On June <@, D@@C, t)e tria" court granted t)e 2otion to Iuas) and dec"ared Searc) ;arrant No. >@>>%@C+ nu"" and 3oid *ased on its 5nding t)at t)e co/rig)ted /roducts of MAN0Y do not a//ear to *e origina" creations and #ere *eing 2anufactured and distri*uted * di,erent co2/anies "oca"" and a*road under 3arious *rands, and t)erefore unIua"i5ed for /rotection under Section <AD of RA BDEC. Moreo3er, MAN0YWs certi5cates of registrations #ere issued on" in D@@D, #)ereas t)ere #ere certi5cates of registrations for t)e sa2e s/orts artic"es #)ic) #ere issued ear"ier t)an MAN0YWs, t)us furt)er negating t)e c"ai2 t)at its co/rig)ted /roducts #ere origina" creations. B On August <<, D@@C, t)e tria" court denied E MAN0YWs 2otion for reconsideration. Hence it 5"ed a /etition for certiorari <@ *efore t)e Court of A//ea"s #)ic) #as denied for "ac$ of 2erit. 4)e a//e""ate court found t)at t)e tria" court correct" granted t)e 2otion to Iuas) and t)at its ru"ing in t)e anci""ar /roceeding did not /ree2/t t)e 5ndings of t)e inte""ectua" /ro/ert court as it did not reso"3e #it) 5na"it t)e status or c)aracter of t)e sei1ed ite2s. After denia" of its 2otion for reconsideration on Se/te2*er <G, D@@>, MAN0Y 5"ed t)e instant /etition for re3ie# on certiorari raising t)e so"e &age 1. of /* issue of #)et)er or not t)e Court of A//ea"s erred in 5nding t)at t)e tria" court did not gra3e" a*use its discretion in dec"aring in t)e )earing for t)e Iuas)a" of t)e searc) #arrant t)at t)e co/rig)ted /roducts of MAN0Y are not origina" creations su*6ect to t)e /rotection of RA BDEC. ;e den t)e /etition. 4)e /o#er to issue searc) #arrants is eLc"usi3e" 3ested #it) t)e tria" 6udges in t)e eLercise of t)eir 6udicia" function. << As suc), t)e /o#er to Iuas) t)e sa2e a"so rests so"e" #it) t)e2. After t)e 6udge )as issued a #arrant, )e is not /rec"uded to su*seIuent" Iuas) t)e sa2e, if )e 5nds u/on ree3a"uation of t)e e3idence t)at no /ro*a*"e cause eLists. Our ru"ing in Solid Triangle Sales Corp. v. Sheri/! 3TC! B.C.! Br. 9C <D is instructi3e, t)us: In)erent in t)e courtsW /o#er to issue searc) #arrants is t)e /o#er to Iuas) #arrants a"read issued. In t)is connection, t)is Court )as ru"ed t)at t)e 2otion to Iuas) s)ou"d *e 5"ed in t)e court t)at issued t)e #arrant un"ess a cri2ina" case )as a"read *een instituted in anot)er court, in #)ic) case, t)e 2otion s)ou"d *e 5"ed #it) t)e "atter. 4)e ru"ing )as since *een incor/orated in Ru"e <DJ of t)e Re3ised Ru"es of Cri2ina" &rocedureO.P In t)e instant case, #e 5nd t)at t)e tria" court did not a*use its discretion #)en it entertained t)e 2otion to Iuas) considering t)at no cri2ina" action )as et *een instituted #)en it #as 5"ed. 4)e tria" court a"so /ro/er" Iuas)ed t)e searc) #arrant it ear"ier issued after 5nding u/on ree3a"uation of t)e e3idence t)at no /ro*a*"e cause eLists to 6ustif its issuance in t)e 5rst /"ace. As ru"ed * t)e tria" court, t)e co/rig)ted /roducts do not a//ear to *e origina" creations of MAN0Y and are not a2ong t)e c"asses of #or$ enu2erated under Section <AD of RA BDEC. 4)e tria" court, t)us, 2a not *e fau"ted for o3erturning its initia" assess2ent t)at t)ere #as /ro*a*"e cause in 3ie# of its in)erent /o#er to issue searc) #arrants and to Iuas) t)e sa2e. No o*6ection 2a *e 3a"id" /osed to an order Iuas)ing a #arrant a"read issued as t)e court 2ust *e /ro3ided #it) t)e o//ortunit to correct itse"f of an error un#itting" co22itted, or, #it) "i$e e,ect, to a""o# t)e aggrie3ed /art t)e c)ance to con3ince t)e court t)at its ru"ing is erroneous. Moreo3er, t)e tria" court #as acting #it)in *ounds #)en it ru"ed, in an anci""ar /roceeding, t)at t)e co/rig)ted /roducts of /etitioner are not origina" creations. 4)is is *ecause in t)e deter2ination of t)e eListence of /ro*a*"e cause for t)e issuance or Iuas)a" of a #arrant, it is ine3ita*"e t)at t)e court 2a touc) on issues /ro/er" t)res)ed out in a regu"ar /roceeding. In so doing, it does not usur/ t)e /o#er of, 2uc) "ess /rec"ude, t)e court fro2 2a$ing a 5na" 6udicia" deter2ination of t)e issues in a fu""-*"o#n tria". ConseIuent", MAN0YWs assertion t)at t)e tria" courtWs order Iuas)ing t)e #arrant /ree2/ted t)e 5nding of t)e inte""ectua" /ro/ert court )as no "ega" *asis. As /ertinent" )e"d in Solid Triangle Sales Corp. v. Sheri/! 3TC! B.C.! Br. 9C: <C ;)en t)e court, in deter2ining /ro*a*"e cause for issuing or Iuas)ing a searc) #arrant, 5nds t)at no o,ense )as *een co22itted, it does not interfere #it) or encroac) u/on t)e /roceedings in t)e /re"i2inar in3estigation. 4)e court does not o*"ige t)e in3estigating oTcer not to 5"e an infor2ation for t)e courtWs ru"ing t)at no cri2e eLists is on" for /ur/oses of issuing or Iuas)ing t)e #arrant. 4)is does not, as /etitioners #ou"d "i$e to *e"ie3e, constitute a usur/ation of t)e eLecuti3e function. Indeed, to s)ir$ fro2 t)is dut #ou"d a2ount to an a*dication of a constitutiona" o*"igation. ... ... 4)e 5nding * t)e court t)at no cri2e eLists does not /rec"ude t)e aut)ori1ed oTcer conducting t)e /re"i2inar in3estigation fro2 2a$ing )is o#n deter2ination t)at a cri2e )as *een co22itted and t)at /ro*a*"e cause eLists for /ur/oses of 5"ing t)e infor2ation. As correct" o*ser3ed * t)e Court of A//ea"s, t)e tria" courtWs 5nding t)at t)e sei1ed /roducts are not co/rig)ta*"e #as 2ere" /re"i2inar as it did not 5na"" and /er2anent" ad6udicate on t)e status and c)aracter of t)e sei1ed ite2s. MAN0Y cou"d sti"" 5"e a se/arate co/rig)t infringe2ent suit against t)e res/ondents *ecause t)e order for t)e issuance or Iuas)a" of a #arrant is not res =udicata. 4)us, in Dlasons ?nterprises Corporation v. Court o% Appeals <> #e )e"d t)at: 4)e /roceeding for t)e sei1ure of /ro/ert in 3irtue of a searc) #arrant does not end #it) t)e actua" ta$ing of t)e /ro/ert * t)e /ro/er oTcers and its de"i3er, usua"" constructi3e, to t)e court. 4)e order for t)e issuance of t)e #arrant is not a 5na" one and cannot constitute res =udicata. Suc) an order does not ascertain and ad6udicate t)e /er2anent status or c)aracter of t)e sei1ed /ro/ert. B its 3er nature, it is /ro3isiona", inter"ocutor. It is 2ere" t)e 5rst ste/ in t)e /rocess to deter2ine t)e c)aracter and tit"e of t)e /ro/ert. 4)at deter2ination is done in t)e cri2ina" action in3o"3ing &age /5 of /* t)e cri2e or cri2es in connection #it) #)ic) t)e searc) #arrant #as issued. Hence, suc) a cri2ina" action s)ou"d *e /rosecuted, or co22enced if not et instituted, and /rosecuted. 4)e outco2e of t)e cri2ina" action #i"" dictate t)e dis/osition of t)e sei1ed /ro/ert` ;e )a3e a"so ru"ed in Ching v. Salinas! Sr.! et al. <G t)at: 4)e R4C )ad 6urisdiction to de"3e into and reso"3e t)e issue #)et)er t)e /etitionerWs uti"it 2ode"s are co/rig)ta*"e and, if so, #)et)er )e is t)e o#ner of a co/rig)t o3er t)e said 2ode"s. It *ears stressing t)at u/on t)e 5"ing of t)e a//"ication for searc) #arrant, t)e R4C #as dut-*ound to deter2ine #)et)er /ro*a*"e cause eListed, in accordance #it) Section >, Ru"e <DJ of t)e Ru"es of Cri2ina" &rocedureO.P !urt)er, t)e co/rig)t certi5cates issued in fa3or of MAN0Y constitute 2ere" prima %acie e3idence of 3a"idit and o#ners)i/. Ho#e3er, no /resu2/tion of 3a"idit is created #)ere ot)er e3idence eList t)at 2a cast dou*t on t)e co/rig)t 3a"idit. Hence, #)ere t)ere is suTcient /roof t)at t)e co/rig)ted /roducts are not origina" creations *ut are readi" a3ai"a*"e in t)e 2ar$et under 3arious *rands, as in t)is case, 3a"idit and origina"it #i"" not *e /resu2ed and t)e tria" court 2a /ro/er" Iuas) t)e issued #arrant for "ac$ of /ro*a*"e cause. Besides, no co/rig)t accrues in fa3or of MAN0Y des/ite issuance of t)e certi5cates of registration and de/osit <J /ursuant to Section D, Ru"e A of t)e Co/rig)ts Safeguards and Regu"ations <A #)ic) states: Sec. D E,ects of Registration and .e/osit of ;or$. 4)e registration and de/osit of t)e #or$ is /ure" for recording t)e date of registration and de/osit of t)e #or$ and s)a"" not *e conc"usi3e as to co/rig)t o#ners)i/ or t)e ter2 of t)e co/rig)ts or t)e rig)ts of t)e co/rig)t o#ner, inc"uding neig)*oring rig)ts. At 2ost, t)e certi5cates of registration and de/osit issued * t)e Nationa" 0i*rar and t)e Su/re2e Court 0i*rar ser3e 2ere" as a notice of recording and registration of t)e #or$ *ut do not confer an rig)t or tit"e u/on t)e registered co/rig)t o#ner or auto2atica"" /ut )is #or$ under t)e /rotecti3e 2ant"e of t)e co/rig)t "a#. It is not a conc"usi3e /roof of co/rig)t o#ners)i/. As it is, non-registration and de/osit of t)e #or$ #it)in t)e /rescri*ed /eriod on" 2a$es t)e co/rig)t o#ner "ia*"e to /a a 5ne. <B )9$#$EO#$, t)e /etition is $NI$. 4)e Ju" <C, D@@> decision of t)e Court of A//ea"s in CA-V.R. S& No. AEBBA and reso"ution dated Se/te2*er <G, D@@>, are AEEI#%$. SO O#$#$. &age /* of /*