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Advocates Philippines
Supreme Court Affirms Right To Enforce Licensing And Fees For Music Industry
Photo credit: FILSCAP
In a landmark decision by the Supreme Court, the Filipino Society of Composers, Authors, and Publishers (FILSCAP) emerged victorious in its battle to enforce copyright and protect the performing rights of musical works.

The Court ruled that Off the Grill Bar and Restaurant, owned and operated by CO SAC, committed copyright infringement by playing copyrighted music without obtaining the required license or paying the corresponding fees to FILSCAP.

FILSCAP, a non-stock, non-profit corporation representing composers, authors, and music publishers, alleged that Filipino composers and foreign composers/publishers assigned their rights to the use and protection of their copyrighted works to FILSCAP. Armed with proof of assignment and international recognition from the International Confederation of Societies of Authors and Composers (ICSAC), FILSCAP demanded that CO SAC secure the necessary licenses and pay royalties for playing copyrighted music in their establishment.

Despite FILSCAP's efforts and repeated demands, CO SAC refused to comply, prompting FILSCAP to file a complaint for infringement of copyright and damages against the restaurant. During the trial, FILSCAP presented evidence, including deeds of assignment and certificates of authentication, to establish its standing to file the case and represent the copyright owners.

In the ruling of the Regional Trial Court (RTC), CO SAC was found guilty of copyright infringement, and the court ordered the restaurant to pay damages for unpaid license fees/royalties and monitoring expenses, as well as attorney's fees and litigation expenses. The Court of Appeals later upheld the RTC's decision, except for the monitoring expenses, which were deleted from the award.

CO SAC, however, continued to appeal the decision, arguing that the necessity of publication in the Intellectual Property Office (IPO) Gazette of the alleged deed of assignment/authority of FILSCAP should be required, and that the payment of license fees/royalties and attorney's fees should be overturned. Nevertheless, the Supreme Court denied the appeal, affirming the lower courts' ruling in favor of FILSCAP.

The Supreme Court clarified that the registration and deposit of copyrighted works are for recording purposes only and do not affect the copyright's validity or rights attached to it, as stipulated under the Berne Convention. As the authorized assignee of the copyright owners, FILSCAP has the right to demand compensation for the public performance of copyrighted musical works in establishments, as it is acting on behalf of the copyright owners who invested time, creativity, talent, and effort in their compositions.
Jul 28, 2023
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