Case Summary (G.R. No. 195956)
Key Dates
• July 22, 2004 – Homecoming event at Ninoy Aquino International Airport (NAIA).
• August 13, 2004 – ABS-CBN files criminal complaint for copyright infringement under Sections 177 & 211, RA 8293.
• December 3, 2004 – City Prosecutor finds probable cause against Dela PeAa-Reyes & Manalastas; no cause against Gozon, Duavit, Flores, Soho.
• January 4, 2005 – Respondents petition Department of Justice (DOJ) for review.
• August 1, 2005 – DOJ Secretary Gonzalez orders withdrawal of information (good-faith defense).
• June 29, 2010 – DOJ Acting Secretary Agra reverses Gonzalez, orders information against all six named officers.
• September 13, 2010 – Court of Appeals (CA) grants temporary restraining order (TRO).
• November 9, 2010 – CA Decision reverses Agra, reinstates Gonzalez Resolution.
• March 11, 2015 – Supreme Court issues final ruling.
Applicable Law
• 1987 Philippine Constitution – executive power includes preliminary investigation and determination of probable cause.
• Republic Act No. 8293 (Intellectual Property Code of the Philippines):
– Section 177: Economic rights (reproduction, distribution, broadcast, etc.)
– Section 184–185: Limitations on copyright, fair-use factors
– Section 211: Broadcasting organizations’ neighboring rights (rebroadcasting, recording)
– Section 212: Exceptions (personal use, short excerpts, news reporting, fair use)
– Section 217: Criminal penalties for infringement (strict liability, imprisonment and fines)
• Rules of Criminal Procedure, Rule 116, Section 11(c): Suspension of arraignment during DOJ review, limited to 60 days.
Factual Background
• ABS-CBN performed live audio-video coverage of Dela Cruz’s arrival and press conference.
• Under a special embargo agreement, Reuters could distribute ABS-CBN footage only to its international subscribers, with “No Access Philippines.”
• GMA-7, a subscriber to Reuters and CNN, assigned its own crews but also received a live Reuters feed.
• GMA-7 aired a segment of that feed, reportedly five seconds long, without noticing the embargo advisory.
• Upon seeing ABS-CBN’s reporter and logo, GMA-7 allegedly cut off the feed.
Procedural History
- ABS-CBN files complaint for criminal infringement; prosecutor finds cause only against Dela PeAa-Reyes & Manalastas.
- Respondents petition DOJ; Secretary Gonzalez dismisses information based on good faith.
- Parties move for reconsideration; trial court suspends arraignment beyond the 60-day limit.
- Acting Secretary Agra grants ABS-CBN’s motion, reinstates probable cause against all six officers.
- Respondents file certiorari in CA; TRO issued; CA reverses Agra, reinstates Gonzalez.
- ABS-CBN elevates to Supreme Court via petition for review on certiorari.
Issues Presented
- Proper remedy and jurisdictional errors in Agra Resolution reversing Gonzalez.
- Copyrightability of live news footage.
- Applicability of fair-use exception and short-excerpt rule.
- Role of knowledge or lack thereof (good faith) in criminal infringement.
- Defense of good faith in criminal copyright prosecution.
- Adequacy of probable-cause finding against individual respondents.
Analysis
• Suspension of Arraignment – Rule 116(c) permits only a 60-day deferment; trial court erred by not arraigning respondents after the period expired.
• Certiorari as Remedy – A petition under Rule 65 was proper; second reconsideration would be futile under DOJ Circular No. 70.
• Review of Probable Cause – Executive discretion in preliminary investigation is respected; judicial review confined to grave abuse of discretion.
• Copyrightable Subject Matter – News footage is an audiovisual work protected upon creation; expression of events (not the bare news) is copyrightable.
• Fair Use and Short Excerpts – Section 212.2 allows short excerpts for news reporting; Section 185 sets a four-factor test. Determination requires full trial, not preliminary dismissal.
• Good Faith Defense – Infringement under the IP Code is malum prohibitum with strict liability. Lack of intent or notice is not a defense to criminal infringement.
• Officer Liability – Corporate officers are individually liable
Case Syllabus (G.R. No. 195956)
Facts of the Case
- ABS-CBN provided live audio-video coverage of the homecoming of hostage victim Angelo dela Cruz on July 22, 2004 at NAIA.
- Under a special embargo agreement, Reuters was permitted to re-air ABS-CBN’s footage internationally, but not to other Philippine subscribers without ABS-CBN’s consent.
- GMA-7, through respondents, staffed its own coverage at NAIA and also received a live feed from Reuters (and CNN) as a subscriber.
- GMA-7 aired, within its “Flash Report” program, the Reuters live feed including a five-second clip of ABS-CBN’s embargoed footage without prior notice or embargo warning.
Procedural History
- August 13, 2004: ABS-CBN filed a criminal complaint for infringement of Sections 177 (economic rights) and 211 (rebroadcast rights) of RA 8293 (IP Code).
- December 3, 2004: Assistant City Prosecutor found probable cause to indict only Grace dela Peaa-Reyes and John Oliver T. Manalastas.
- December 17, 2004: Information was filed in RTC, QC, charging those two respondents with willful, unlawful broadcast of ABS-CBN’s footage.
- January 5, 2005: Respondents petitioned the DOJ for review; RTC suspended arraignment for 60 days per Rule 116, Sec. 11(c).
Department of Justice Resolutions
- August 1, 2005 (Gonzalez Resolution): Secretary Gonzalez granted respondents’ petition, found good faith exculpatory, dismissed the Information, and ordered its withdrawal.
- June 29, 2010 (Agra Resolution): Acting Secretary Agra reversed Gonzalez, ruled that good faith is a disputable presumption for trial, found probable cause against all respondents (including Gozon, Duavit, Flores, Soho), and directed the filing of Information.
Court of Appeals Ruling
- September 13, 2010: CA issued TRO preventing DOJ from enforcing the Agra Resolution.
- November 9, 2010: CA Decision granted respondents’ certiorari petition, held that Agra acted with jurisdictional error and grave abuse, reinstated Gonzalez Resolution, ruled absence of notice and GMA-7’s good faith negated criminal liability.
- CA premised its ruling on: an admitted five-second use of Reuters feed; lack of knowledge of the embargo