G.R. No. L-21256 - Calo vs. Court of Appeals

Philippine Home Cable Holdings, Inc. (Home Cable) is a domestic corporation primarily engaged in installing, operating, and maintaining a cable television system.
Filipino Society of Composers, Authors, and Publishers, Inc. (Filscap) is a non-stock, non-profit association representing Filipino composers, authors, and publishers, accredited as a collective management organization (CMO).

Home Cable made channel distribution agreements to show international channels including VIVA Cinema (a Tagalog movie channel), HBO, ESPN, CNN, MTV Asia, MGM Gold Network, among others.
In 1995 and 1996, Home Cable executed Memoranda of Agreement with Precision Audio Video Service, Inc. for videoke laser disc materials to be broadcast on specific cable channels (channels 22, 32, 38, 52).
Home Cable was responsible for and controlled the operation of these channels, including equipment provision, and had agreements that Precision Audio held copyrights and government permits for the laser discs.

Filscap monitored channels 22 and 32 in 1997 and 1998 and found musical compositions belonging to its members being played without a license.
After repeated requests for a license were ignored, Filscap filed a complaint for injunction and damages in RTC Quezon City alleging copyright infringement.
Home Cable denied the allegations asserting lack of liability due to being a cable operator, lack of public performance, and claimed Filscap did not hold rights to sue for communication to the public.

RTC found Home Cable liable for copyright infringement and awarded damages, exemplary damages, and attorney's fees.
Court of Appeals affirmed liability but modified damage awards, decreasing them.
Home Cable filed a Petition for Review to the Supreme Court contesting the liability and invoking the recent jurisprudence (ABS-CBN Broadcasting Corp. v. Philippine Multi-Media System), claiming that retransmission is not infringement and that Filscap lacked authority to sue for communications rights.

The Intellectual Property Code (RA 8293), including amendments, defines copyright, economic rights, and specifies rights such as reproduction, public performance, and communication to the public.
International conventions (Berne Convention, Rome Convention, WIPO Treaties) recognize and differentiate public performance and communication to the public rights.
Prior jurisprudence distinguished cable retransmission (retransmission of free-to-air broadcasts) from original broadcasting or programming origination.

Whether Home Cable's act of broadcasting videoke channels constitutes copyright infringement by unauthorized exercise of economic rights under RA 8293.
Whether the economic right infringed is "public performance" or "communication to the public" as separate and distinct rights.
Whether Filscap has the legal standing to sue for the communication to the public right.
Whether the "must carry" rule exempted Home Cable from liability for copyright infringement.
Whether Precision Audio and other channel providers are indispensable parties.