Case Summary (G.R. No. L-36402)
Factual Background
The Plaintiff-Appellant is a non-profit association of authors, composers and publishers duly organized and registered with the Securities and Exchange Commission and owned the copyrights to certain musical compositions including the songs “Dahil Sa Iyo,” “Sapagkat Ikaw Ay Akin,” “Sapagkat Kami Ay Tao Lamang,” and “The Nearness Of You.” The Defendant-Appellee operated a restaurant known as “Alex Soda Fountain and Restaurant.” A combo with professional singers performed and played the disputed musical compositions to entertain customers in the restaurant. The Plaintiff demanded payment of a license fee for such performances; the Defendant ignored the demand. The Plaintiff then filed an action for infringement of copyright.
Trial Court Proceedings
At trial the Defendant admitted that the musical compositions were played and sung in his establishment but maintained that mere playing and singing did not constitute infringement under the Copyright Law. The trial court found for the Defendant and dismissed the complaint, making findings that the music was provided to entertain and amuse customers to make the establishment more attractive and that the performers were engaged as independent contractors. The trial court gave no special pronouncement as to costs.
Court of Appeals and Certification
The Plaintiff appealed to the Court of Appeals. The Court of Appeals concluded that the case presented pure questions of law and certified the matter to the Supreme Court for final determination. The Supreme Court accepted the certification and resolved the legal issues presented.
Issues Presented
The principal legal issues were (1) whether the playing and singing of copyrighted musical compositions inside the Defendant’s restaurant constituted a public performance for profit within the meaning of the Copyright Law (Act 3134); and (2) if such performances were public performances for profit, whether the Defendant could be held liable for infringement. The Plaintiff also raised assignments of error contesting the trial court’s findings that the compositions were in the public domain, that the performers were independent contractors acting at the patrons’ request, that the performances were not public performances for profit, and that the trial court erred in not finding multiple separate infringements.
Plaintiff-Appellant’s Contentions
The Plaintiff contended that the exclusive right under Section 3(c) of the Copyright Law included the right “to exhibit, perform, represent, produce, or reproduce the copyrighted work in any manner or by any method whatever for profit or otherwise,” and that the playing and singing of musical compositions plainly constituted a performance. The Plaintiff argued that performances in the restaurant, although patrons were not charged a specific admission fee, served to attract customers and increase sales; therefore they constituted performances for profit and infringed the Plaintiff’s exclusive rights unless licensed.
Defendant-Appellee’s Contentions
The Defendant conceded that the musical works were played but asserted that the mere playing and singing of songs and popular tunes in a restaurant did not amount to infringement under the Copyright Law. The Defendant further argued that the composers had effectively waived their rights and that the compositions had become public property prior to registration because they had been publicly used and popularized long before the copyright registrations were filed.
Supreme Court’s Ruling
The Court held that the playing and singing of the musical compositions in the Defendant’s restaurant did constitute public performances for profit within the meaning of the Copyright Law (Act 3134), as amended. The Court nonetheless affirmed the judgment of the trial court dismissing the complaint because the challenged compositions had already become public property prior to registration and thus were beyond the protection of the Copyright Law. The appealed decision of the Court of First Instance of Manila in Civil Case No. 71222 was affirmed.
Legal Basis and Reasoning on Performance for Profit
The Court applied established authority construing the term “perform” to include playing a musical composition on an instrument and explained that performances in public establishments furnished to attract patrons constitute performances for profit. The Court relied on authorities such as Buck et al. v. Duncan, Buck et al. v. Russon, Herbert v. Shanley Co., and John Church Co. v. Hillard Hotel Co., quoting Justice Holmes to the effect that performances given as part of a commercial establishment’s total service are not eleemosynary and are paid for by the public as part of the price of the whole. The Court found that the music in Defendant’s establishment was furnished to entertain and induce patronage and that the expenses for the performers were part of the restaurant’s overhead and thus ultimately borne by patrons. The Court therefore concluded that the performances were public performances for profit under Section 3(c) of the Copyright Law.
Legal Basis and Reasoning on Public Domain
Despite finding that the per
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Parties and Posture
- Filipino Society of Composers, Authors and Publishers, Inc., plaintiff-appellant, was a non-profit association and registered owner of certain musical compositions.
- Benjamin Tan, defendant-appellee, was the operator of the "Alex Soda Fountain and Restaurant" where the contested musical performances occurred.
- The plaintiff filed a complaint for copyright infringement in the Court of First Instance of Manila as Civil Case No. 71222 on November 7, 1967.
- The trial court dismissed the complaint and the plaintiff appealed to the Court of Appeals in CA-G.R. No. 46373-R, which certified the case to the Supreme Court for final determination.
- The Supreme Court resolved the case in G.R. No. L-36402 as set forth in the record.
Key Facts
- The appellant owned copyrighted songs including "Dahil Sa Iyo", "Sapagkat Ikaw Ay Akin", "Sapagkat Kami Ay Tao Lamang", and "The Nearness Of You".
- A combo with professional singers performed those compositions in defendant's restaurant to entertain customers.
- The combo was paid as independent contractors for their performances in the restaurant.
- The patrons paid only for food and drink and not for a separate musical admission fee.
- The songs had been publicly popular and used on radio and jukeboxes prior to their registration dates according to unrebutted testimony.
Issues Presented
- Whether the playing and singing of the copyrighted musical compositions in the defendant's establishment constituted a public performance for profit within the meaning of the Copyright Law (Act 3134).
- If such performances were public performances for profit, whether the defendant-appellee could be held liable for infringement.
Contentions
- The appellant contended that Section 3(c) of Act 3134 conferred an exclusive right to perform the copyrighted works and that performances in a commercial eating establishment constituted performance for profit even if patrons did not pay separately for music.
- The appellee contended that the mere playing and singing in the restaurant did not constitute infringement and alternatively contended that the musical compositions had become public property prior to copyright registration.
Statutory Framework
- The Court relied on Section 3(c) of Act 3134 for the exclusive right "To exhibit, perform, represent, produce, or reproduce the copyrighted work in any manner or by any method whatever for profit or otherwise."
- The Court considered the effect of the Patent Office