BROADCASTING DEFINED
Broadcasting is defined in the Philippine IP Code as the transmission by wireless means for the public reception of sounds or of images or of representations thereof; such transmission by satellite is also "broadcasting" where the means for decrypting are provided to the public by the broadcasting organization or with its consent; (IP Code, Section 202.7)
Under this setup, the broadcaster has the exclusive right to carry out, authorize or prevent any of the following acts:
- The rebroadcasting of their broadcasts
- The recording in any manner, including the making of films or the use of video tape, of their broadcasts for the purpose of communication to the public of television broadcasts of the same; and
- The use of such records for fresh transmissions or for fresh recording. (IP Code, Section 211)
THE CURIOUS CASE OF ABS-CBN v. PMSI
In 2009, the Supreme Court decided on a case called ABS-CBN Broadcasting Corp. v. Philippine Multimedia System, Inc., G.R. Nos. 175769-70 and I found it to be a disturbing read.
In this case, ABS-CBN, a Philippine broadcaster sued the company, Philippine Multimedia System, Inc. (PMSI) that ran Dream Satellite TV for making ABS-CBN channels available to its subscribers without permission.
ABS-CBN won the case at the Bureau of Legal Affairs (BLA) of the Intellectual Property Office (IPO) and was able to acquire a temporary restraining order against Dream Satellite TV.
The case would be appealed to the Director General, reversed the ruling that would later be affirmed by the Court of Appeals (CA) and the Supreme Court (SC).
Ultimately, the court decided that PMSI may ignore the intellectual property rights of ABS-CBN because PMSI's legislative franchise (Republic Act No. 8630) and a Memorandum Circular mandated it to carry local channels, including those owned by ABS-CBN. (Although the law never expressly exempted PMSI from acquiring licenses from the broadcasters)
WORST STATEMENT EVER
I can't believe I read this paragraph from the case:
Relevantly, PMSI’s carriage of Channels 2 and 23 is material in arriving at the ratings and audience share of ABS-CBN and its programs. These ratings help commercial advertisers and producers decide whether to buy airtime from the network. Thus, the must-carry rule is actually advantageous to the broadcasting networks because it provides them with increased viewership which attracts commercial advertisers and producers.
Like asking a musician to play for free in front of a bar’s paying customers because it’s good for exposure… familiar?
PUBLIC WELFARE IS GREATER THAN PROPERTY RIGHTS, BUT...
Indeed, I must agree with the observation of the court that “… the welfare of the people must not be sacrificed in the pursuit of profit.”
After all, the Philippine Constitution makes it clear that:
The use of property bears a social function, and all economic agents shall contribute to the common good. Individuals and private groups, including corporations, cooperatives, and similar collective organizations, shall have the right to own, establish, and operate economic enterprises, subject to the duty of the State to promote distributive justice and to intervene when the common good so demands. (1987 Constitution, Article XII, Section 6)
BUT it is also true that the State has the responsibility of providing just compensation if and when it decides to use or take private property for a public purpose. Taking the intellectual property of ABS-CBN and handing it over to Dream Satellite TV as part of their business without a license is nothing short of a violation of the Constitutional right to due process:
No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws. (1987 Constitution, Article III, Section 1)
COPYRIGHT AND RELATED RIGHTS OF OTHER PERSONS AFFECTED
In every broadcast, there are numerous copyrights attached to the content, belonging to different persons. Copyright belongs to the writers who wrote the scripts, the designers of the program, the graphic artists, writers of the music, the filmmakers, the photographers and videographers, the set and costume designers and all those creative persons who were involved in creating the content.
Similarly, there are also related rights that belong to the producers and performers of the sound recordings used for the TV programs.
Any observer must remember that the simple act of making the content available to the public without the consent of the creators is a violation of copyright law and the rights of many individuals and organizations.
SUPREME COURT SHOULD HAVES...
The court might have arrived at a more instructive and precise decision if it took the following steps:
- Ruled on the constitutionality of the ‘must-carry’ rule of PMSI’s legislative franchise and the related Memorandum Order (which would have shown that the rule was confiscatory and in violation of the due process);
- Done a fair use analysis in favor of the copyright holders (PMSI’s use would have failed the fair use test);
- Examined the legislative franchise of ABS-CBN and see if it has the obligation to provide its content to satellite TV providers without a license. (Upon examination of R.A. 7966, there is no such obligation); and
- Harmonized the IP Code with PMSI’s legislative franchise instead of presuming that the latter was an exception to the former.
A DECISION BAD FOR BUSINESS
There was simply a misunderstanding of copyright and related rights and their role in business. We are now left with a situation of self-discrimination where Filipino broadcast organizations are not paid for the use of their content by cable and satellite TV providers while foreign broadcasters are properly paid for theirs.
Copyright and related rights over broadcasts have fallen off the balance in this country. I think with better IP education for judges, business organizations and lawmakers, it would still be possible to salvage this situation for better times.