Case Digest (G.R. No. 175769-70)
Facts:
ABS-CBN Broadcasting Corporation v. Philippine Multi‑Media System, Inc., G.R. Nos. 175769-70, January 19, 2009, Supreme Court Third Division, Ynares‑Santiago, J., writing for the Court.ABS‑CBN is a licensed television and radio broadcaster that transmits free‑to‑air programs over Channels 2 and 23; Philippine Multi‑Media System, Inc. (PMSI) operates a direct‑to‑home (DTH) satellite pay‑television service (Dream Broadcasting System) and carried ABS‑CBN’s Channels 2 and 23 in its line‑up. After negotiations over PMSI’s carriage failed, ABS‑CBN filed with the Intellectual Property Office (IPO), Bureau of Legal Affairs (BLA) a complaint for “Violation of Laws Involving Property Rights” (IPV No. 10‑2002‑0004) on May 13, 2002, alleging unauthorized rebroadcasting and copyright/broadcaster’s‑rights infringement.
The BLA granted a temporary restraining order on July 2, 2002; PMSI suspended retransmission and sought relief in the Court of Appeals (CA‑G.R. SP No. 71597). PMSI maintained that it was bound by the NTC “must‑carry” policy under NTC Memorandum Circular No. 04‑08‑88 (Section 6.2). The NTC issued letters to PMSI (December 20, 2002 and July 24/August 2003) advising that DTH services fall within the spirit and coverage of the must‑carry rule; later NTC Memorandum Circular No. 10‑10‑2003 (October 10, 2003) did not supersede MC 04‑08‑88, per the NTC.
On December 22, 2003, the IPO BLA found infringement and ordered PMSI to cease rebroadcasting Channels 2 and 23. PMSI appealed to the IPO Director‑General (Appeal No. 10‑2004‑0002). The Director‑General reversed the BLA’s decision on December 20, 2004, concluding PMSI did not engage in “rebroadcasting” as defined by the IP statutory and international standards, and was effectively performing cable‑type retransmission not actionable under the Rome Convention/IP Code. PMSI also sought dismissal of its CA petition (which was granted February 17, 2005).
ABS‑CBN filed petitions for review with the Court of Appeals (CA‑G.R. SP Nos. 88092 and 90762 — the latter a contempt petition for alleged disobedience of the CA TRO). The CA issued a TRO on July 18, 2005, consolidated the two cases on November 14, 2005, and on July 12, 2006 dismissed ABS‑CBN’s peti...(Pro-only)
Issues:
- Did the Court of Appeals err in dismissing ABS‑CBN’s petition for contempt (CA‑G.R. SP No. 90762) without requiring respondents to file a comment?
- May ABS‑CBN collaterally attack the constitutionality of NTC Memorandum Circular No. 04‑08‑88, and is resolution of that constitutional question necessary to decide this case?
- Did PMSI’s carriage of Channels 2 and 23 constitute unlawful rebroadcasting or copyright/broadcaster’s‑rights infringement under the Intellectual Property Code (RA 8293)?
- Does NTC Memorandum Circular No. 04‑08‑88 cover DTH satellite operators such as PMSI and, relatedly, does the must‑carry rule amount to a taking of private property without ...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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