G.R. No. 256091 - Icebergs Food Concepts, Inc. and Allan John T. Young vs. Filipino Society of Composers, Authors, and Publishers, Inc.

Icebergs Food Concepts, Inc. (Icebergs) is a Philippine corporation operating multiple restaurant branches nationwide.
Allan John T. Young is the President and General Supervisor of Icebergs.
Filipino Society of Composers, Authors, and Publishers, Inc. (FILSCAP) is a non-stock, non-profit association of composers and a government-accredited Collective Management Organization (CMO). FILSCAP is authorized to acquire, administer, license, and enforce public performance rights over copyrighted musical works of its members and affiliate foreign societies. It is a member of the International Confederation of Societies of Authors and Composers (CISAC), with reciprocal agreements covering foreign copyrighted works.

From 2010 to 2014, FILSCAP monitored Icebergs’ restaurants and discovered that they publicly played copyrighted musical works from FILSCAP’s repertoire without acquiring the necessary public performance license. About 324 songs were played without license.
FILSCAP issued multiple letters (five between 2009-2010, two additional demand letters in 2010 and 2014, and a final demand letter in September 2014) to Icebergs and Young, urging them to secure licenses and pay fees. Icebergs failed to respond or comply.
FILSCAP filed a Complaint for Copyright Infringement on December 1, 2014, before the Regional Trial Court (RTC) of Quezon City, alleging infringement under Sections 216 and 177 of the Intellectual Property Code (IP Code). FILSCAP claimed unpaid license fees amounting to ₱627,200.00 for 2010-2014, plus ₱500,000.00 each as moral and exemplary damages, and ₱100,000.00 for attorney’s fees.

Icebergs denied infringement, challenged FILSCAP’s authority to collect royalties, and argued that the complaint lacked proof that FILSCAP was the real party-in-interest.
Icebergs counterclaimed for attorney’s fees and litigation expenses.
FILSCAP replied affirming its authority via Deeds of Assignment executed by its members and reciprocal agreements with foreign societies, all deposited with the Copyright Office.

Icebergs presented Young as its sole witness, who testified there was no public musical performance but only occasional radio broadcasts heard in restaurants, which were not intended for customer enticement or commercial benefit.
Young denied that the restaurants charged fees for music or promoted music as a product, billing only for food and drinks consumed.

The RTC found Icebergs liable for copyright infringement, holding FILSCAP to be the effective copyright owner of public performance rights by virtue of Deeds of Assignment and reciprocal agreements.
The RTC found Icebergs played FILSCAP’s musical compositions publicly at least 324 times without license.
Playing background music via any device was considered public performance.
The RTC ordered Icebergs and Young to pay:

₱627,200.00 as actual/compensatory damages,
₱300,000.00 as moral damages,
₱300,000.00 as exemplary damages,
₱100,000.00 as attorney’s fees plus litigation cost (₱66,386.58 monitoring expense).

Icebergs was enjoined from further public performance of FILSCAP's works without license.

The CA affirmed the RTC decision and resolution in full.
It held that “public performance” under Section 171.6 of the IP Code includes playing recorded sounds audibly in places where persons outside the family circle are present, irrespective of control over the sound.
The CA rejected Icebergs’ reliance on U.S. law (Section 110 US Copyright Act and Twentieth Century Music Corp. v. Aiken) as these defenses were not pleaded or proven.
The CA noted that Icebergs filed the wrong appeal (Rule 43 instead of Rule 41) with the CA.
Denial of Icebergs’ motion for reconsideration was affirmed in 2021.

Icebergs filed a Petition for Review on Certiorari under Rule 45 before the Supreme Court contesting the CA decisions.

Whether Icebergs committed copyright infringement by publicly performing copyrighted musical works through playing radio broadcasts in its restaurants without obtaining a license from FILSCAP.