ipl copyright cases

8/11/2019 IPL Copyright Cases

1/41

United States Court of Appeals,Second Circuit.

James LIPTON, Plainti-Counter-efendant-Appellee, !. T"eNATU#$ CO%PAN&, d'a T"e Nature Compan( of California,efendant-Cross-Claimant, %ic"ael )ein, efendant-Cross-efendant-Appellant, Animal )isdom $nterprises, Inc.,efendant-Counter-Claimant-Appellant.

*++, ocet /-*01. No.

Ar3ued Sept. *+, *. -- No!em'er 0+, *Before: MINER, MAHONEY, and CABRANES, Circuit Judges. Nanc J.!e"sten, Ne# Yor$ Cit %Marcia B. &au", 'a Co""er ( Boose, Ne# Yor$ Cit,on t)e *rief+, for &"ainti-Counter-efendant-A//e""ee. 0. ona"d &rut12an,Ne# Yor$ Cit %Stec)er Jag"o2 ( &rut12an, Ne# Yor$ Cit, Jo)n &. Sutton,Ha3erstoc$, Med"en ( Carro"", San !rancisco, Ca"ifornia, on t)e *rief+ forefendants-Counter-C"ai2ants-A//e""ants.4)is is an a//ea" fro2 a 5na" 6udg2ent of t)e 7nited States istrict Courtfor t)e Sout)ern istrict of Ne# Yor$ %Ric)ard O#en, Judge +, granting/"ainti-a//e""ee Ja2es 0i/ton8s %90i/ton+ 2otion for su22ar 6udg2enton )is co/rig)t and 0an)a2 Act c"ai2s against defendants Ani2a";isdo2 Enter/rises, Inc. %9A;E+, its /resident and /rinci/a" stoc$)o"der,Mic)ae" ;ein %9;ein+, and 4)e Nature Co2/an, %9Nature+.


2/41

t)e so"e source of t)e co2/i"ation featured on t)e initia" /oster t)at ;ein2ar$eted to "i*raries and 2useu2s. = 4)is scarf #as 2ar$ed as an eL)i*itduring ;ein8s de/osition and #as a3ai"a*"e to t)e district court. =According to ;ein, t)is scarf, #)ic) "isted ani2a" ter2s and one cr/ticter2-9a sno/tic of SCI-#as an unso"icited /ro2otiona" ite2 fro2 anunidenti5ed source. =;ein denies co/ing an edition of 0i/ton8s *oo$ andc"ai2s t)at t)e ter2s used on t)e ;ein /oster and t)e Mu"titudes /roducts#ere co/ied fro2 a *anner or scarf %9t)e scarf+ t)at )e recei3ed in t)e"ate 7.S.


3/41

reuires /roof t)at % 7.S. >@, >, G !.Dd at G %5ndingarrange2ent of *usinesses in director to *e /rotecti*"e #)ere 9tP)earrange2ent is in no sense 2ec)anica" and 9entai"ed t)e de 2ini2ist)oug)t needed to #it)stand t)e origina"it reuire2ent+K cf. !eist, >7.S. at , !.Dd >>, > %DdCir.+, cert. denied, > 7.S.


4/41

reuired to 3ie# t)e facts in t)e "ig)t 2ost fa3ora*"e to t)e /artieso//osing t)e 2otion and to sus/end 6udg2ents on credi*i"it. = 4)is iscorro*orated * t)e de/osition testi2on of )is art director, Mic)ae"Eng"is), and t)e fact t)at ;ein /roduced t)e scarf during disco3er. ="ist ofter2s, since t)e ince/tion of t)e suit, ;ein )as consistent" 2aintainedt)at )e co/ied t)e ter2s direct" fro2 t)e scarf.

See .C. Co2ics Inc. 3. Mini Vift S)o/,


5/41

7.S.C. = 4)e district court erred in conc"uding, on a su22ar 6udg2ent2otion, t)at ;ein #i""fu"" infringed 0i/ton8s co/rig)t *ased on itsdeter2ination t)at ;ein8s stor a*out t)e scarf #as 9in)erent"incredi*"e. =7nited States 3. Re2, !.d >, >->> %Dd Cir.+. =eter2inations of credi*i"it are #it)in t)e /ro3ince of t)e 6ur and 2anot *e reso"3ed on su22ar 6udg2ent. = ;ein dis/utes t)e assertion t)at)e #i""fu"" co/ied fro2 An ELa"tation of 0ar$s, arguing t)at )e innocent"co/ied fro2 t)e scarf #)at )e *e"ie3ed to *e an un/rotecta*"eco2/i"ation. = Ho#e3er, t)is is not suc) a case. = See Resource

e3e"o/ers, Inc. 3. Statue of 0i*ert-E""is Is"and !ound., Inc., D !.Dd ,< %Dd Cir. Ci3. , ;0 >GGGGG, at XG %S..N.Y. Aug. D, +, a8d, < !.d G %DdCir. !.Dd @>,


6/41

%Dd Cir., %Dd Cir.


7/41

P$A#L 7 $AN 8P9IL.:, INCO#PO#AT$, &etitioner,3s.S9O$%A#T, INCO#PO#AT$, and NO#T9 $SA %A#;$TIN4,INCO#PO#AT$, Res/ondents.

E C I S I O N

CO#ONA,J.:

In t)e instant /etition for re3ie# on certiorariunder Ru"e >G of t)eRu"es of Court, /etitioner &ear" ( ean %&)i".+ Inc. %& ( + assai"s t)eMa DD, D@@< decision


8/41

In dening t)e c)arges )ur"ed against it, SMI 2aintained t)at itinde/endent" de3e"o/ed its /oster /ane"s using co22on" $no#ntec)niues and a3ai"a*"e tec)no"og, #it)out notice of or reference to&ear" and eanWs co/rig)t. SMI noted t)at t)e registration of t)e 2ar$Z&oster AdsZ #as on" for stationeries suc) as "etter)eads, en3e"o/es,and t)e "i$e. Besides, according to SMI, t)e #ord Z&oster AdsZ is ageneric ter2 #)ic) cannot *e a//ro/riated as a trade2ar$, and, assuc), registration of suc) 2ar$ is in3a"id. It a"so stressed t)at &ear"and ean is not entit"ed to t)e re"iefs /raed for in its co2/"aint since

its ad3ertising dis/"a units contained no co/rig)t notice, in 3io"ationof Section D of &.. >. SMI a""eged t)at &ear" and ean )ad no causeof action against it and t)at t)e suit #as /ure" intended to 2a"ignSMIWs good na2e. On t)is *asis, SMI, aside fro2 /raing for t)edis2issa" of t)e case, a"so counterc"ai2ed for 2ora", actua" andeLe2/"ar da2ages and for t)e cance""ation of &ear" and eanWsCerti5cation of Co/rig)t Registration No. &-R-DGG dated JanuarD@, , as a2ended, and Sections D and D> of RA + to /er2anent" refrain fro2 infringing t)e co/rig)t on/"aintiWs "ig)t *oLes and its trade2ar$ Z&oster AdsZ.

efendantsW counterc"ai2s are )ere* ordered dis2issed for "ac$ of2erit.

SO ORERE.>

On a//ea", )o#e3er, t)e Court of A//ea"s re3ersed t)e tria" court:

Since t)e "ig)t *oLes cannot, * an stretc) of t)e i2agination, *econsidered as eit)er /rints, /ictoria" i""ustrations, ad3ertising co/ies,"a*e"s, tags or *oL #ra/s, to *e /ro/er" c"assi5ed as a co/rig)ta*"ec"ass ZOZ #or$, #e )a3e to agree #it) SMI #)en it /osited t)at #)at#as co/rig)ted #ere t)e tec)nica" dra#ings on", and not t)e "ig)t*oLes t)e2se"3es, t)us:

>D. ;)en a dra#ing is tec)nica" and de/icts a uti"itarian o*6ect, aco/rig)t o3er t)e dra#ings "i$e /"ainti-a//e""antWs #i"" not eLtend tot)e actua" o*6ect. It )as so *een )e"d under 6uris/rudence, of #)ic)t)e "eading case is Ba$er 3s. Se"den %< %


9/41

t)e under"ing art #)en no eLa2ination of its no3e"t )as e3er *een2ade #ou"d *e a sur/rise and a fraud u/on t)e /u*"icK t)at is t)e/ro3ince of "etters /atent, not of co/rig)t.Z And t)at is /recise" t)e/oint. No dou*t a#are t)at its a""eged origina" design #ou"d ne3er/ass t)e rigorous eLa2ination of a /atent a//"ication, /"ainti-a//e""ant foug)t to foist a fraudu"ent 2ono/o" on t)e /u*"ic *con3enient" resorting to a co/rig)t registration #)ic) 2ere"e2/"os a recorda" sste2 #it)out t)e *ene5t of an in-de/t)eLa2ination of no3e"t.

4)e /rinci/"e in Baker vs. Selden#as "i$e#ise a//"ied in Muller vs.Triborough Bridge Authority> !. Su//. D %S..N.Y. D+P. In t)iscase, Mu""er )ad o*tained a co/rig)t o3er an un/u*"is)ed dra#ingentit"ed ZBridge A//roac) \ t)e dra#ing s)o#ed a no3e" *ridgea//roac) to unsnar" traTc congestionZ. 4)e defendant constructed a*ridge a//roac) #)ic) #as a""eged to *e an infringe2ent of t)e ne#design i""ustrated in /"aintiWs dra#ings. In t)is case it #as )e"d t)at/rotection of t)e dra#ing does not eLtend to t)e unaut)ori1eddu/"ication of t)e o*6ect dra#n *ecause co/rig)t eLtends on" to t)edescri/tion or eL/ression of t)e o*6ect and not to t)e o*6ect itse"f. Itdoes not /re3ent one fro2 using t)e dra#ings to construct t)e o*6ect/ortraed in t)e dra#ing.

In t#o ot)er cases, Imperial Homes Corp. v. Lamont, >G !. Dd Gand Scholt Homes! Inc. v. Maddo", !. Dd >, it #as )e"d t)at t)ereis no co/rig)t infringe2ent #)en one #)o, #it)out *eing aut)ori1ed,uses a co/rig)ted arc)itectura" /"an to construct a structure. 4)is is*ecause t)e co/rig)t does not eLtend to t)e structures t)e2se"3es.

In 5ne, #e cannot 5nd SMI "ia*"e for infringing &ear" and eanWsco/rig)t o3er t)e tec)nica" dra#ings of t)e "atterWs ad3ertisingdis/"a units.

LLL LLL LLL

4)e Su/re2e Court trenc)ant" )e"d in #aberge! Incorporated vs.Intermediate Appellate Courtt)at t)e /rotecti3e 2ant"e of t)e4rade2ar$ 0a# eLtends on" to t)e goods used * t)e 5rst user ass/eci5ed in t)e certi5cate of registration, fo""o#ing t)e c"ear 2andatecon3eed * Section D@ of Re/u*"ic Act


10/41

AdsZ )as acuired a secondar 2eaning in t)is 6urisdiction, #e 5ndt)at &ear" and eanWs eLc"usi3e rig)t to t)e use of Z&oster AdsZ is"i2ited to #)at is #ritten in its certi5cate of registration, na2e",stationeries.

efendants-a//e""ants cannot t)us *e )e"d "ia*"e for infringe2ent oft)e trade2ar$ Z&oster AdsZ.

4)ere *eing no 5nding of eit)er co/rig)t or trade2ar$ infringe2ent

on t)e /art of SMI and NEMI, t)e 2onetar a#ard granted * t)e "o#ercourt to &ear" and ean )as no "eg to stand on.

LLL LLL LLL

;HERE!ORE, /re2ises considered, t)e assai"ed decision is RE[ERSEand SE4 ASIE, and anot)er is rendered ISMISSINV t)e co2/"aintand counterc"ai2s in t)e a*o3e-entit"ed case for "ac$ of 2erit.G

issatis5ed #it) t)e a*o3e decision, /etitioner & ( 5"ed t)e instant/etition assigning t)e fo""o#ing errors for t)e CourtWs consideration:

A. 4HE HONORAB0E CO7R4 O! A&&EA0S ERRE IN R70INV4HA4 NO CO&YRIVH4 IN!RINVEMEN4 ;AS COMMI44E BYRES&ONEN4S SM AN NEMIK

B. 4HE HONORAB0E CO7R4 O! A&&EA0S ERRE IN R70INV4HA4 NO IN!RINVEMEN4 O! &EAR0 ( EANWS 4RAEMAR'Z&OS4ER ASZ ;AS COMMI44E BY RES&ONEN4S SM ANNEMIK

C. 4HE HONORAB0E CO7R4 O! A&&EA0S ERRE IN ISMISSINV4HE A;AR O! 4HE 4RIA0 CO7R4, ES&I4E 4HE 0A44ERWS!ININV, NO4 IS&74E BY 4HE HONORAB0E CO7R4 O!

A&&EA0S, 4HA4 SM ;AS V7I04Y O! BA !AI4H IN I4SNEVO4IA4ION O! A[ER4ISINV CON4RAC4S ;I4H &EAR0 (EAN.

. 4HE HONORAB0E CO7R4 O! A&&EA0S ERRE IN NO4HO0INV RES&ONEN4S SM AN NEMI 0IAB0E 4O &EAR0 (EAN !OR AC47A0, MORA0 ( E]EM&0ARY AMAVES,A44ORNEYWS !EES AN COS4S O! S7I4.

ISS7ES

In reso"3ing t)is 3er interesting case, #e are c)a""enged once againto /ut into /ro/er /ers/ecti3e four 2ain concerns of inte""ectua"/ro/ert "a# ^ /atents, co/rig)ts, trade2ar$s and unfairco2/etition arising fro2 infringe2ent of an of t)e 5rst t)ree. ;es)a"" focus t)en on t)e fo""o#ing issues:

%


11/41

%O+ &rints, /ictoria" i""ustrations, ad3ertising co/ies, "a*e"s, tags, and*oL #ra/sK

L L L L L L L L L

A"t)oug) /etitionerWs co/rig)t certi5cate #as entit"ed ZAd3ertisingis/"a 7nitsZ %#)ic) de/icted t)e *oL-t/e e"ectrica" de3ices+, itsc"ai2 of co/rig)t infringe2ent cannot *e sustained.

Co/rig)t, in t)e strict sense of t)e ter2, is /ure" a statutor rig)t.Being a 2ere statutor grant, t)e rig)ts are "i2ited to #)at t)e statuteconfers. It 2a *e o*tained and en6oed on" #it) res/ect to t)esu*6ects and * t)e /ersons, and on ter2s and conditions s/eci5ed int)e statute.Accordingly! it can cover only the &orks %alling &ithin thestatutory enumeration or description.

& ( secured its co/rig)t under t)e c"assi5cation class '('&ork.4)is *eing so, /etitionerWs co/rig)t /rotection eLtended on" tot)e tec)nica" dra#ings and not to t)e "ig)t *oL itse"f *ecause t)e "atter#as not at a"" in t)e categor of Z/rints, /ictoria" i""ustrations,ad3ertising co/ies, "a*e"s, tags and *oL #ra/s.Z Stated ot)er#ise,

e3en as #e 5nd t)at & ( indeed o#ned a 3a"id co/rig)t, t)e sa2ecou"d )a3e referred on" to t)e tec)nica" dra#ings #it)in t)e categorof Z/ictoria" i""ustrations.Z It cou"d not )a3e /ossi*" stretc)ed out toinc"ude t)e under"ing "ig)t *oL. 4)e strict a//"ication of t)e "a#Wsenu2eration in Section D /re3ents us fro2 gi3ing /etitioner e3en a"itt"e "ee#a, t)at is, e3en if its co/rig)t certi5cate #as entit"edZAd3ertising is/"a 7nits.Z ;)at t)e "a# does not inc"ude, it eLc"udes,and for t)e good reason: t)e "ig)t *oL #as not a "iterar or artistic/iece #)ic) cou"d *e co/rig)ted under t)e co/rig)t "a#. And no "essc"ear", neit)er cou"d t)e "ac$ of statutor aut)orit to 2a$e t)e "ig)t*oL co/rig)ta*"e *e re2edied * t)e si2/"istic act of entit"ing t)eco/rig)t certi5cate issued * t)e Nationa" 0i*rar as ZAd3ertisingis/"a 7nits.Z

In 5ne, if SMI and NEMI re/rinted & ( Ws tec)nica" dra#ings for sa"e tot)e /u*"ic #it)out "icense fro2 & ( , t)en no dou*t t)e #ou"d )a3e*een gui"t of co/rig)t infringe2ent. But t)is #as not t)e case. SMIWsand NEMIWs acts co2/"ained of * & ( #ere to )a3e units si2i"ar oridentica" to t)e "ig)t *oL i""ustrated in t)e tec)nica" dra#ings2anufactured * Metro and EY Rain*o# Ad3ertising, for "easing outto dierent ad3ertisers. ;as t)is an infringe2ent of /etitionerWsco/rig)t o3er t)e tec)nica" dra#ings_ ;e do not t)in$ so.

uring t)e tria", t)e /resident of & ( )i2se"f ad2itted t)at t)e "ig)t*oL #as neit)er a "iterar not an artistic #or$ *ut an Zengineering or

2ar$eting in3ention.Z


12/41

4o *e a*"e to eecti3e" and "ega"" /rec"ude ot)ers fro2 co/ing and/ro5ting fro2 t)e in3ention, a /atent is a /ri2ordia" reuire2ent. No/atent, no /rotection. 4)e u"ti2ate goa" of a /atent sste2 is to *ringne# designs and tec)no"ogies into t)e /u*"ic do2ain t)roug)disc"osure.Ideas, once disc"osed to t)e /u*"ic #it)out t)e /rotectionof a 3a"id /atent, are su*6ect to a//ro/riation #it)out signi5cantrestraint.


13/41

*oo$, if not /irated fro2 ot)er #or$s, #ou"d *e 3a"id #it)out regard tot)e no3e"t or #ant of no3e"t of its su*6ect 2atter. 4)e no3e"t of t)eart or t)ing descri*ed or eL/"ained )as not)ing to do #it) t)e 3a"iditof t)e co/rig)t. To 3i!e to t"e aut"or of t"e 'oo an e=clusi!epropert( in t"e art descri'ed t"erein, >"en no e=amination ofits no!elt( "as e!er 'een o?ciall( made, >ould 'e a surpriseand a fraud upon t"e pu'lic. T"at is t"e pro!ince of letterspatent, not of cop(ri3"t. T"e claim to an in!ention ofdisco!er( of an art or manufacture must 'e su'@ected to t"ee=amination of t"e Patent O?ce 'efore an e=clusi!e ri3"tt"erein can 'e o'tained and a patent from t"e 3o!ernmentcan onl( secure it.

4)e dierence *et#een t)e t#o t)ings, "etters /atent and co/rig)t,2a *e i""ustrated * reference to t)e su*6ects 6ust enu2erated. 4a$et)e case of 2edicines. Certain 2iLtures are found to *e of great 3a"uein t)e )ea"ing art. If t"e disco!erer >rites and pu'lis"es a 'ooon t"e su'@ect 8as re3ular p"(sicians 3enerall( do:, "e 3ainsno e=clusi!e ri3"t to t"e manufacture and sale of t"emedicine "e 3i!es t"at to t"e pu'lic. If "e desires to acBuiresuc" e=clusi!e ri3"t, "e must o'tain a patent for t"e mi=tureas a ne> art, manufacture or composition of matter. 9e ma(

cop(ri3"t "is 'oo, if "e pleases 'ut t"at onl( secures to "imt"e e=clusi!e ri3"t of printin3 and pu'lis"in3 "is 'oo. So ofall ot"er in!entions or disco!eries.

4)e co/rig)t of a *oo$ on /ers/ecti3e, no 2atter )o# 2an dra#ingsand i""ustrations it 2a contain, gi3es no eLc"usi3e rig)t to t)e 2odesof dra#ing descri*ed, t)oug) t)e 2a ne3er )a3e *een $no#n orused *efore. B /u*"is)ing t)e *oo$ #it)out getting a /atent for t)eart, t)e "atter is gi3en to t)e /u*"ic.

L L L

No#, #)i"st no one )as a rig)t to /rint or /u*"is) )is *oo$, or an2ateria" /art t)ereof, as a *oo$ intended to con3e instruction in t)eart, an /erson 2a /ractice and use t)e art itse"f #)ic) )e )asdescri*ed and i""ustrated t)erein. T"e use of t"e art is a totall(dierent t"in3 from a pu'lication of t"e 'oo e=plainin3 it.4)eco/rig)t of a *oo$ on *oo$$ee/ing cannot secure t)e eLc"usi3e rig)tto 2a$e, se"" and use account *oo$s /re/ared u/on t)e /"an set fort)in suc) *oo$. ;)et)er t)e art 2ig)t or 2ig)t not )a3e *een /atented,is a uestion, #)ic) is not *efore us. It #as not /atented, and is o/enand free to t)e use of t)e /u*"ic. And, of course, in using t)e art, t)eru"ed "ines and )eadings of accounts 2ust necessari" *e used asincident to it.

4)e /"ausi*i"it of t)e c"ai2 /ut for#ard * t)e co2/"ainant in t)iscase arises fro2 a confusion of ideas /roduced * t)e /ecu"iar natureof t)e art descri*ed in t)e *oo$s, #)ic) )a3e *een 2ade t)e su*6ectof co/rig)t. In descri*ing t)e art, t)e i""ustrations and diagra2se2/"oed )a//ened to corres/ond 2ore c"ose" t)an usua" #it) t)eactua" #or$ /erfor2ed * t)e o/erator #)o uses t)e art. L L L T"edescription of t"e art in a 'oo, t"ou3" entitled to t"e 'enetof cop(ri3"t, la(s no foundation for an e=clusi!e claim to t"eart itself. T"e o'@ect of t"e one is e=planation t"e o'@ect oft"e ot"er is use. T"e former ma( 'e secured '( cop(ri3"t. T"elatter can onl( 'e secured, if it can 'e secured at all, '( letterspatent.D %underscoring su//"ied+

ON 4HE ISS7E O! 4RAEMAR' IN!RINVEMEN4

4)is issue concerns t)e use * res/ondents of t)e 2ar$ Z&oster AdsZ#)ic) /etitionerWs /resident said #as a contraction of Z/osterad3ertising.Z & ( #as a*"e to secure a trade2ar$ certi5cate for it,*ut one #)ere t)e goods s/eci5ed #ere Zstationeries suc) as"etter)eads, en3e"o/es, ca""ing cards and ne#s"etters.ZDD&etitionerad2itted it did not co22ercia"" engage in or 2ar$et t)ese goods. Ont)e contrar, it dea"t in e"ectrica"" o/erated *ac$"it ad3ertising units

and t)e sa"e of ad3ertising s/aces t)ereon, #)ic), )o#e3er, #ere notat a"" s/eci5ed in t)e trade2ar$ certi5cate.

7nder t)e circu2stances, t)e Court of A//ea"s correct" cited #abergeInc. vs. Intermediate Appellate Court,D#)ere #e, in3o$ing Section D@of t)e o"d 4rade2ar$ 0a#, ru"ed t)at Zt)e certi5cate of registrationissued * t)e irector of &atents can confer %u/on /etitioner+ t)eeLc"usi3e rig)t to use its o#n s2*o" only to those goods speci$ed inthe certi$cate, su*6ect to an conditions and "i2itations s/eci5ed int)e certi5cate L L L. One #)o )as ado/ted and used a trade2ar$ on)is goods does not prevent the adoption and use o% the sametrademark by others %or products &hich are o% adi/erentdescription.ZD>#aberge! Inc.#as correct and #as in fact

recent" reiterated inCanon 0abushiki 0aisha vs. Court o% Appeals.DG

Assu2ing arguendot)at Z&oster AdsZ cou"d 3a"id" ua"if as atrade2ar$, t)e fai"ure of & ( to secure a trade2ar$ registration fors/eci5c use on t)e "ig)t *oLes 2eant t)at t)ere cou"d not )a3e *eenan trade2ar$ infringe2ent since registration #as an essentia"e"e2ent t)ereof.12&phi1

ON 4HE ISS7E O! 7N!AIR COM&E4I4ION

&age *1of /*
http://www.lawphil.net/judjuris/juri2003/aug2003/gr_148222_2003.html#fnt22http://www.lawphil.net/judjuris/juri2003/aug2003/gr_148222_2003.html#fnt23http://www.lawphil.net/judjuris/juri2003/aug2003/gr_148222_2003.html#fnt23http://www.lawphil.net/judjuris/juri2003/aug2003/gr_148222_2003.html#fnt24http://www.lawphil.net/judjuris/juri2000/july2000/120900.htmhttp://www.lawphil.net/judjuris/juri2000/july2000/120900.htmhttp://www.lawphil.net/judjuris/juri2003/aug2003/gr_148222_2003.html#fnt25http://www.lawphil.net/judjuris/juri2003/aug2003/gr_148222_2003.html#fnt22http://www.lawphil.net/judjuris/juri2003/aug2003/gr_148222_2003.html#fnt23http://www.lawphil.net/judjuris/juri2003/aug2003/gr_148222_2003.html#fnt24http://www.lawphil.net/judjuris/juri2000/july2000/120900.htmhttp://www.lawphil.net/judjuris/juri2003/aug2003/gr_148222_2003.html#fnt25


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If at a"", t)e cause of action s)ou"d )a3e *een for unfair co2/etition, asituation #)ic) #as /ossi*"e e3en if & ( )ad noregistration.DHo#e3er, #)i"e t)e /etitionerWs co2/"aint in t)e R4Ca"so cited unfair co2/etition, t)e tria" court did not 5nd /ri3ateres/ondents "ia*"e t)erefor. &etitioner did not a//ea" t)is /articu"ar/ointK )ence, it cannot no# re3i3e its c"ai2 of unfair co2/etition.

But e3en disregarding /rocedura" issues, #e ne3ert)e"ess cannot )o"dres/ondents gui"t of unfair co2/etition.

B t)e nature of t)ings, t)ere can *e no unfair co2/etition under t)e"a# on co/rig)ts a"t)oug) it is a//"ica*"e to dis/utes o3er t)e use oftrade2ar$s. E3en a na2e or /)rase inca/a*"e of a//ro/riation as atrade2ar$ or tradena2e 2a, * "ong and eLc"usi3e use * a *usiness%suc) t)at t)e na2e or /)rase *eco2es associated #it) t)e *usinessor /roduct in t)e 2ind of t)e /urc)asing /u*"ic+, *e entit"ed to/rotection against unfair co2/etition.DIn t)is case, t)ere #as noe3idence t)at & ( Ws use of Z&oster AdsZ #as distincti3e or #e""-$no#n. As noted * t)e Court of A//ea"s, /etitionerWs eL/ert #itnesses)i2se"f )ad testi5ed t)at Z &oster AdsW #as too generic a na2e. So it#as diTcu"t to identif it #it) an co2/an, )onest" s/ea$ing.ZD4)iscrucia" ad2ission * its o#n eL/ert #itness t)at Z&oster AdsZ cou"d not

*e associated #it) & ( s)o#ed t)at, in t)e 2ind of t)e /u*"ic, t)egoods and ser3ices carring t)e trade2ar$ Z&oster AdsZ cou"d not *edistinguis)ed fro2 t)e goods and ser3ices of ot)er entities.

4)is fact a"so /re3ented t)e a//"ication of t)e doctrine of secondar2eaning. Z&oster AdsZ #as generic and inca/a*"e of *eing used as atrade2ar$ *ecause it #as used in t)e 5e"d of /oster ad3ertising, t)e3er *usiness engaged in * /etitioner. ZSecondar 2eaningZ 2eanst)at a #ord or /)rase origina"" inca/a*"e of eLc"usi3e a//ro/riation#it) reference to an artic"e in t)e 2ar$et %*ecause it is geogra/)ica""or ot)er#ise descri/ti3e+ 2ig)t ne3ert)e"ess )a3e *een used for so"ong and so eLc"usi3e" * one /roducer #it) reference to )is artic"et)at, in t)e trade and to t)at *ranc) of t)e /urc)asing /u*"ic, t)e #ord

or /)rase )as co2e to 2ean t)at t)e artic"e #as )is /ro/ert. D4)ead2ission * /etitionerWs o#n eL/ert #itness t)at )e )i2se"f cou"d notassociate Z&oster AdsZ #it) /etitioner & ( *ecause it #as ZtoogenericZ de5nite" /rec"uded t)e a//"ication of t)is eLce/tion.

Ha3ing discussed t)e 2ost i2/ortant and critica" issues, #e see noneed to *e"a*or t)e rest.

A"" to"d, t)e Court 5nds no re3ersi*"e error co22itted * t)e Court ofA//ea"s #)en it re3ersed t)e Regiona" 4ria" Court of Ma$ati Cit.

)9$#$EO#$, t)e /etition is )ere* ENIE and t)e decision of t)eCourt of A//ea"s dated Ma DD, D@@< is A!!IRME in toto.

SO ORERE.

4.#. No. *5+/6 Januar( 0+, *

E#ANCISCO 4. JOAFUIN, J#., and GJ P#OUCTIONS,INC., /etitioners,3s.9ONO#AGL$ E#AN;LIN #ILON, 4AG#I$L HOSA, )ILLIA%$SPOSO, E$LIP$ %$INA, J#., and CAS$& E#ANCISCO, res/ondents.

%$NOHA,J.:

4)is is a /etition for certiorari. &etitioners see$ to annu" t)e reso"utionof t)e e/art2ent of Justice, dated August


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reiterated )is de2and and #arned t)at, if I]0 did not co2/", )e#ou"d endorse t)e 2atter to )is attornes for /ro/er "ega" action.

Mean#)i"e, /ri3ate res/ondent Uosa soug)t to register I]08s co/rig)tto t)e 5rst e/isode of It8s a ate for #)ic) it #as issued * t)eNationa" 0i*rar a certi5cate of co/rig)t August , .

Non-Assign2ent of Error.

&etitioners c"ai2 t)at t)eir fai"ure to su*2it t)e co/rig)ted 2aster3ideota/e of t)e te"e3ision s)o# R)oda and Me #as not raised in issue* /ri3ate res/ondents during t)e /re"i2inar in3estigation and,

t)erefore, it #as error for t)e Secretar of Justice to re3erse t)ein3estigating /rosecutor8s 5nding of /ro*a*"e cause on t)is ground.

A /re"i2inar in3estigation fa""s under t)e aut)orit of t)e state/rosecutor #)o is gi3en * "a# t)e /o#er to direct and contro" cri2ina"actions.0He is, )o#e3er, su*6ect to t)e contro" of t)e Secretar ofJustice. 4)us, Ru"e . uty o% investigating $scal. ^ If t)ein3estigating 5sca" 5nds cause to )o"d t)e res/ondentfor tria", )e s)a"" /re/are t)e reso"ution and

corres/onding infor2ation. He s)a"" certif under oat)t)at )e, or as s)o#n * t)e record, an aut)ori1edoTcer, )as /ersona"" eLa2ined t)e co2/"ainant and)is #itnesses, t)at t)ere is reasona*"e ground to*e"ie3e t)at a cri2e )as *een co22itted and t)at t)eaccused is /ro*a*" gui"t t)ereof, t)at t)e accused#as infor2ed of t)e co2/"aint and of t)e e3idencesu*2itted against )i2 and t)at )e #as gi3en ano//ortunit to su*2it contro3erting e3idence.Ot)er#ise, )e s)a"" reco22end dis2issa" of t)eco2/"aint.

In eit)er case, )e s)a"" for#ard t)e records of t)e case

to t)e /ro3incia" or cit 5sca" or c)ief state /rosecutor#it)in 53e %G+ das fro2 )is reso"ution. 4)e "atter s)a""ta$e a//ro/riate action t)ereon ten %


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;)ere t)e in3estigating assistant 5sca" reco22endst)e dis2issa" of t)e case *ut )is 5ndings are re3ersed* t)e /ro3incia" or cit 5sca" or c)ief state /rosecutoron t)e ground t)at a /ro*a*"e cause eLists, t)e "atter2a, * )i2se"f, 5"e t)e corres/onding infor2ationagainst t)e res/ondent or direct an ot)er assistant5sca" or state /rosecutor to do so, #it)out conductinganot)er /re"i2inar in3estigation.

If u/on /etition * a /ro/er /art, t)e Secretar ofJustice re3erses t)e reso"ution of t)e /ro3incia" or cit5sca" or c)ief state /rosecutor, )e s)a"" direct t)e5sca" concerned to 5"e t)e corres/onding infor2ation#it)out conducting anot)er /re"i2inar in3estigationor to dis2iss or 2o3e for dis2issa" of t)e co2/"aint orinfor2ation.

In re3ie#ing reso"utions of /rosecutors, t)e Secretar of Justice is not/rec"uded fro2 considering errors, a"t)oug) unassigned, for t)e/ur/ose of deter2ining #)et)er t)ere is /ro*a*"e cause for 5"ingcases in court. He 2ust 2a$e )is o#n 5nding, of /ro*a*"e cause and isnot con5ned to t)e issues raised * t)e /arties during /re"i2inar

in3estigation. Moreo3er, )is 5ndings are not su*6ect to re3ie# un"esss)o#n to )a3e *een 2ade #it) gra3e a*use.

O/inion of t)e Secretar of Justice

&etitioners contend, )o#e3er, t)at t)e deter2ination of t)e uestion#)et)er t)e for2at or 2ec)anics of a s)o# is entit"ed to co/rig)t/rotection is for t)e court, and not t)e Secretar of Justice, to 2a$e.4)e assai" t)e fo""o#ing /ortion of t)e reso"ution of t)e res/ondentSecretar of Justice:

4P)e essence of co/rig)t infringe2ent is t)e

co/ing, in #)o"e or in /art, of co/rig)ta*"e 2ateria"sas de5ned and enu2erated in Section D of &. No.>.Apart %rom the manner in &hich it is actuallye"pressed! ho&ever! the idea o% a dating game sho&is! in the opinion o% this (5ce! a non6copyrightablematerial. Ideas! concepts! %ormats! or schemes in theirabstract %orm clearly do not %all &ithin the class o%&orks or materials susceptible o% copyrightregistration as provided in +. 7o. 89. 1%E2/)asisadded.+

It is indeed true t)at t)e uestion #)et)er t)e for2at or 2ec)anics of/etitioners te"e3ision s)o# is entit"ed to co/rig)t /rotection is a "ega"uestion for t)e court to 2a$e. 4)is does not, )o#e3er, /rec"uderes/ondent Secretar of Justice fro2 2a$ing a /re"i2inardeter2ination of t)is uestion in reso"3ing #)et)er t)ere is /ro*a*"ecause for 5"ing t)e case in court. In doing so in t)is case, )e did notco22it an gra3e error.

&resentation of Master 4a/e

&etitioners c"ai2 t)at res/ondent Secretar of Justice gra3e" a*used)is discretion in ru"ing t)at t)e 2aster 3ideota/e s)ou"d )a3e *een/redented in order to deter2ine #)et)er t)ere #as /ro*a*"e cause forco/rig)t infringe2ent. 4)e contend t)at :;th Century #o" #ilmCorporation v. Court o% Appeals, / on #)ic) res/ondent Secretar ofJustice re"ied in re3ersing t)e reso"ution of t)e in3estigating/rosecutor, is ina//"ica*"e to t)e case at *ar *ecause in t)e /resentcase, t)e /arties /resented suTcient e3idence #)ic) c"ear" esta*"is)Z"in$age *et#een t)e co/rig)t s)o# ZR)oda and MeZ and t)einfringing 4[ s)o# ZIt8s a ate.Z

4)e case of D@t) Centur !oL !i"2 Cor/oration in3o"3ed raids

conducted on 3arious 3ideota/e out"ets a""eged"" se""ing or rentingout Z/iratedZ 3ideota/es. 4)e tria" court found t)at t)e aTda3its ofNBI agents, gi3en in su//ort of t)e a//"ication for t)e searc) #arrant,#ere insuTcient #it)out t)e 2aster ta/e. According", t)e tria" court"ifted t)e searc) #arrants it )ad /re3ious" issued against t)edefendants. On /etition for re3ie#, t)is Court sustained t)e action oft)e tria" court and ru"ed: 6

4)e /resentation of t)e 2aster ta/es of t)eco/rig)ted 5"2s fro2 #)ic) t)e /irated 5"2s #erea""eged" co/ied, #as necessar for t)e 3a"idit ofsearc) #arrants against t)ose #)o )a3e in t)eir/ossession t)e /irated 5"2s. 4)e /etitioner8s

argu2ent to t)e eect t)at t)e /resentation of t)e2aster ta/es at t)e ti2e of a//"ication 2a not *enecessar as t)ese #ou"d *e 2ere" e3identiar innature and not deter2inati3e of #)et)er or not a/ro*a*"e cause eLists to 6ustif t)e issuance of t)esearc) #arrants is not 2eritorious. 4)e court cannot/resu2e t)at du/"icate or co/ied ta/es #erenecessari" re/roduced fro2 2aster ta/es t)at ito#ns.

4)e a//"ication for searc) #arrants #as directedagainst 3ideo ta/e out"ets #)ic) a""eged" #ere

&age *6of /*


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engaged in t)e unaut)ori1ed sa"e and renting out ofco/rig)ted 5"2s *e"onging to t)e /etitioner /ursuantto &.. >.

4)e essence of a co/rig)t infringe2ent is t)esi2i"arit or at "east su*stantia" si2i"arit of t)e/ur/orted /irated #or$s to t)e co/rig)ted #or$.Hence, t)e a//"icant 2ust /resent to t)e court t)eco/rig)ted 5"2s to co2/are t)e2 #it) t)e /urc)ased

e3idence of t)e 3ideo ta/es a""eged" /irated todeter2ine #)et)er t)e "atter is an unaut)ori1edre/roduction of t)e for2er. 4)is "in$age of t)eco/rig)ted 5"2s to t)e /irated 5"2s 2ust *eesta*"is)ed to satisf t)e reuire2ents of /ro*a*"ecause. Mere a""egations as to t)e eListence of t)eco/rig)ted 5"2s cannot ser3e as *asis for t)eissuance of a searc) #arrant.

4)is ru"ing #as ua"i5ed in t)e "ater case of Columbia +ictures!Inc. v. Court o% Appeals


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Sec. D. 4)e rig)ts granted * t)is ecree s)a"", fro2t)e 2o2ent of creation, su*sist #it) res/ect to an oft)e fo""o#ing c"asses of #or$s:

%A+ Boo$s, inc"uding co2/osite and cc"o/edic #or$s,2anuscri/ts, directories, and ga1etteers:

%B+ &eriodica"s, inc"uding /a2/)"ets and ne#s/a/ersK

%C+ 0ectures, ser2ons, addresses, dissertations/re/ared for ora" de"i3erK

%+ 0ettersK

%E+ ra2atic or dra2atico-2usica" co2/ositionsKc)oreogra/)ic #or$s and entertain2ents in du2*s)o#s, t)e acting for2 of #)ic) is 5Led in #riting orot)er#iseK

%!+ Musica" co2/ositions, #it) or #it)out #ordsK

%V+ ;or$s of dra#ing, /ainting, arc)itecture, scu"/ture,engra3ing, "it)ogra/), and ot)er #or$s of artK 2ode"sor designs for #or$s of artK

%H+ Re/roductions of a #or$ of artK

%I+ Origina" orna2enta" designs or 2ode"s for artic"esof 2anufacture, #)et)er or not /atenta*"e, and ot)er#or$s of a//"ied artK

%J+ Ma/s, /"ans, s$etc)es, and c)artsK

%'+ ra#ings or /"astic #or$s of a scienti5c ortec)nica" c)aracterK

%I+ &)otogra/)ic #or$s and #or$s /roduced * a/rocess ana"ogous to /)otogra/) "antern s"idesK

%M+ Cine2atogra/)ic #or$s and #or$s /roduced * a/rocess ana"ogous to cine2atogra/) or an /rocessfor 2a$ing audio-3isua" recordingsK

%N+ Co2/uter /rogra2sK

%O+ &rints, /ictoria" i""ustrations ad3ertising co/ies,"a*e"s tags, and *oL #ra/sK

%&+ ra2ati1ations, trans"ations, ada/tations,a*ridge2ents, arrange2ents and ot)er a"terations of"iterar, 2usica" or artistic #or$s or of #or$s of t)e&)i"i//ine go3ern2ent as )erein de5ned, #)ic) s)a""*e /rotected as /ro3ided in Section of t)is ecree.

%+ Co""ections of "iterar, sc)o"ar", or artistic #or$s orof #or$s referred to in Section of t)is ecree #)ic)* reason of t)e se"ection and arrange2ent of t)eircontents constitute inte""ectua" creations, t)e sa2e to*e /rotected as suc) in accordance #it) Section oft)is ecree.

%R+ Ot)er "iterar, sc)o"ar", scienti5c and artistic#or$s.

4)is /ro3ision is su*stantia"" t)e sa2e as , D, in enu2erating #)at are su*6ect to co/rig)t, refers to5nis)ed #or$s and not to conce/ts. 4)e co/rig)t does not eLtend to

&age *+of /*


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an idea, /rocedure, /rocess, sste2, 2et)od of o/eration, conce/t,/rinci/"e, or disco3er, regard"ess of t)e for2 in #)ic) it is descri*ed,eL/"ained, i""ustrated, or e2*odied in suc) #or$.*4)us, t)e ne#IN4E00EC47A0 &RO&ER4Y COE O! 4HE &HI0I&&INES /ro3ides:

Sec. -R entit"ed #ilipino Society o% Composers! Authors! +ublishers!Inc.! +lainti/6Appellant v. Ben=amin Tan! e%endant6Appellee! fro2 t)edecision of t)e Court of !irst Instance of Mani"a, Branc) [II in Ci3i"Case No. -R, Ro""o, /. K Reso"ution of t)eSu/re2e Court of !e*ruar


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On t)e ot)er )and, defendant-a//e""ee is t)e o/erator of a restaurant$no#n as ZA"eL Soda !oundation and RestaurantZ #)ere a co2*o #it)/rofessiona" singers, )ired to /"a and sing 2usica" co2/ositions toentertain and a2use custo2ers t)erein, #ere /"aing and singing t)ea*o3e-2entioned co2/ositions #it)out an "icense or /er2ission fro2t)e a//e""ant to /"a or sing t)e sa2e. According", a//e""antde2anded fro2 t)e a//e""ee /a2ent of t)e necessar "icense fee fort)e /"aing and singing of aforesaid co2/ositions *ut t)e de2and #asignored.

Hence, on No3e2*er , -R, Ro""o, //. D-+under t)e /ro3isions of Section of t)e Co/rig)t 0a# %Act of t)e

&)i"i//ine 0egis"ature+.

4)e "o#er court, 5nding for t)e defendant, dis2issed t)e co2/"aint%Record on A//ea", /. DG+.

&"ainti a//ea"ed to t)e Court of A//ea"s #)ic) as a"read statedcerti5ed t)e case to t)e Su/re2e Court for ad6udication on t)e "ega"uestion in3o"3ed. %Reso"ution, Court of A//ea"s, Ro""o, /. KReso"ution of t)e Su/re2e Court of !e*ruar


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It 2aintains t)at /"aing or singing a 2usica" co2/osition isuni3ersa"" acce/ted as /erfor2ing t)e 2usica" co2/osition and t)at/"aing and singing of co/rig)ted 2usic in t)e soda fountain andrestaurant of t)e a//e""ee for t)e entertain2ent of t)e custo2ersa"t)oug) t)e "atter do not /a for t)e 2usic *ut on" for t)e food anddrin$ constitute /erfor2ance for /ro5t under t)e Co/rig)t 0a# %Brieffor t)e A//e""ant, //. > DG !. Su//.


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&rinting Co2/an, -DG P. Indeed, if t)e genera"/u*"ic )as 2ade use of t)e o*6ect soug)t to *e co/rig)ted for t)irt%@+ das /rior to t)e co/rig)t a//"ication t)e "a# dee2s t)e o*6ectto )a3e *een donated to t)e /u*"ic do2ain and t)e sa2e can no"onger *e co/rig)ted.

A carefu" stud of t)e records re3ea"s t)at t)e song Za)i" Sa IoZ#)ic) #as registered on A/ri" D@,


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t)e *oo$ E&. 4)e /"agiaris2, incor/oration and re/roduction of/articu"ar /ortions of t)e *oo$ CE4 in t)e *oo$ E&, #it)out t)eaut)orit or consent of /etitioners, and t)e 2isre/resentations ofres/ondent Ro*"es t)at t)e sa2e #as )er origina" #or$ and conce/tad3erse" aected and su*stantia"" di2inis)ed t)e sa"e of t)e/etitioners8 *oo$ and caused t)e2 actua" da2ages * #a ofunrea"i1ed inco2e.

es/ite t)e de2ands of t)e /etitioners for res/ondents to desist fro2

co22itting furt)er acts of infringe2ent and for res/ondent to reca""E& fro2 t)e 2ar$et, res/ondents refused. &etitioners as$ed t)e courtto order t)e su*2ission of a"" co/ies of t)e *oo$ E&, toget)er #it)t)e 2o"ds, /"ates and 5"2s and ot)er 2ateria"s used in its /rintingdestroed, and for res/ondents to render an accounting of t)e/roceeds of a"" sa"es and /ro5ts since t)e ti2e of its /u*"ication andsa"e.

Res/ondent Ro*"es #as i2/"eaded in t)e suit *ecause s)e aut)oredand direct" co22itted t)e acts of infringe2ent co2/"ained of, #)i"eres/ondent Vood#i"" 4rading Co., Inc. #as i2/"eaded as t)e /u*"is)erand 6oint co-o#ner of t)e co/rig)t certi5cates of registration co3eringt)e t#o *oo$s aut)ored and caused to *e /u*"is)ed * res/ondent

Ro*"es #it) o*3ious conni3ance #it) one anot)er.

On Ju" D,


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In t)e a//ea", /etitioners argued t)at t)e tria" court co2/"ete"disregarded t)eir e3idence and fu"" su*scri*ed to t)e argu2ents ofres/ondent Ro*"es t)at t)e *oo$s in issue #ere /ure" t)e /roduct of)er researc)es and studies and t)at t)e co/ied /ortions #ere ins/ired* foreign aut)ors and as suc) not su*6ect to co/rig)t. &etitionersa"so assai"ed t)e 5ndings of t)e tria" court t)at t)e #ere ani2ated **ad fait) in instituting t)e co2/"aint. */

On June D,


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irres/ecti3e of t)e o#ners)i/ of t)e origina" or t)eco/ #)ic) is t)e su*6ect of t)e renta"K %n+


26/41

is t)at /etitioners ac$no#"edged t)e aut)or Ed2und Bur$e, andres/ondents did not.

In se3era" ot)er /ages 06t)e treat2ent and 2anner of /resentation oft)e to/ics of E& are si2i"ar if not a re)as) of t)at contained in CE4.

;e *e"ie3e t)at res/ondent Ro*"es8 act of "ifting fro2 t)e *oo$ of/etitioners su*stantia" /ortions of discussions and eLa2/"es, and )erfai"ure to ac$no#"edge t)e sa2e in )er *oo$ is an infringe2ent of

/etitioners8 co/rig)ts.

;)en is t)ere a su*stantia" re/roduction of a *oo$_ It does notnecessari" reuire t)at t)e entire co/rig)ted #or$, or e3en a "arge/ortion of it, *e co/ied. If so 2uc) is ta$en t)at t)e 3a"ue of t)eorigina" #or$ is su*stantia"" di2inis)ed, t)ere is an infringe2ent ofco/rig)t and to an in6urious eLtent, t)e #or$ is a//ro/riated. 0Z+ + MicrosoftWs a""eged /roof of /urc)ase %recei/t+ fort)e


35/41

t)e a2ount of 7S? does not eList, for res/ondents#as#ere not t)e 2anufacturers of t)e Microsoft soft#are sei1ed and#ere se""ing t)eir /roducts as genuine Microsoft soft#are, consideringt)at t)e *oug)t it fro2 a Microsoft "icensee.

Co2/"ainant, on t)e ot)er )and, considering t)at it )as t)e *urden of/ro3ing t)at t)e res/ondents isare "ia*"e for t)e oense c)arged, )asnot /resented an e3idence t)at t)e ite2s sei1ed na2e" t)e G*oLes of MS-OS .@ soft#are are counterfeit.

4)e certi5cation issued on ece2*er


36/41

Hence, t)is /etition. Microsoft contends t)at:

I. 4HE OJ ERRE IN R70INV 4HA4 4HE 0IABI0I4Y O! RES&ONEN4S;AS ON0Y CI[I0 IN NA47RE BY [IR47E O! 4HE 0ICENSE AVREEMEN4.

II. 4HE OJ MISA&&RECIA4E 4HE !AC4 4HA4 RES&ONEN4S ;EREENVAVE IN 4HE I00EVA0 IM&OR4A4ION, SA0E AN IS4RIB74ION O!CO7N4ER!EI4 SO!4;ARE AS E[IENCE BY 4HE I4EMS &7RCHASE7RINV 4HE 4ES4-B7Y AN 4HE I4EMS SEIUE !ROM RES&ONEN4SW

&REMISES.

III. 4HE OJ MISA&&RECIA4E 4HE 0A; ON CO&YRIVH4 IN!RINVEMEN4AN 7N!AIR COM&E4I4ION.

I[. ON0Y 4;O O74 O! 4HE NINE RES&ONEN4S BO4HERE 4O !I0ECO7N4ER-A!!IA[I4SK HENCE, 4HE CHARVES AVAINS4 SE[ENRES&ONEN4SP REMAIN 7NCON4RO[ER4E.D

In its Co22ent, 5"ed * t)e So"icitor Venera", t)e OJ 2aintains t)at itdid not co22it gra3e a*use of discretion in dis2issing MicrosoftWsco2/"aint.D

!or t)eir /art, res/ondents a""ege in t)eir Co22ent t)at Microsoft isgui"t of foru2-s)o//ing *ecause its /etition in CA-V.R. C[ No. G>@@#as 5"ed a)ead of, and )as a Zco22on interestZ #it), t)is /etition. Ont)e 2erits, res/ondents reiterate t)eir c"ai2s in t)eir 2otion to uas)Searc) ;arrant Nos. G-> and G-G t)at t)e artic"es sei1ed fro2t)e2 #ere eit)er o#ned * ot)ers, /urc)ased fro2 "egiti2ate sources,or not /roduced * Microsoft. Res/ondents a"so insist t)at t)eAgree2ent entit"ed Be"tron to Zco/ and re/"icate or re/roduceZMicrosoft /roducts. On t)e con5scated D,< C-ROMs, res/ondentsa""ege t)at a certain cor/orationD"eft t)e C-ROMs #it) t)e2 forsafe$ee/ing. 0ast", res/ondents c"ai2 t)at t)ere is no /roof t)at t)eC&7 Sacri1 and Sa2iano *oug)t fro2 t)e2 contained /re-insta""ed

Microsoft soft#are *ecause t)e recei/t for t)e C&7 does not indicateZsPoft#are )ard dis$.Z @

In its Re/", Microsoft counters t)at it is not "ia*"e for foru2-s)o//ing*ecause its /etition in CA-V.R. C[ No. G>@@ in3o"3ed t)e Orders oft)e R4C /artia"" uas)ing Searc) ;arrant Nos. G-> and G-G#)i"e t)is /etition concerns t)e OJ Reso"utions dis2issing itsco2/"aint against res/ondents for co/rig)t infringe2ent and unfairco2/etition. On t)e 2erits, Microsoft 2aintains t)at res/ondentss)ou"d *e indicted for co/rig)t infringe2ent and unfair co2/etition.

&age 1


38/41

#irst.Being t)e co/rig)t and trade2ar$ o#ner of Microsoftsoft#are, Microsoft acted #e"" #it)in its rig)ts in 5"ing t)eco2/"aint under I.S. No. - and Artic"e sei1ed fro2 res/ondents,res/ondent Be"tron, t)e on" res/ondent #)o #as /art to t)eAgree2ent, cou"d not )a3e re/roduced t)e2 under t)e Agree2ent ast)e So"icitor Venera"G@and res/ondents contend. Be"tronWsrig)tsGBeing a 2erere/roducerinsta""er of one Microsoft soft#are co/ on eac) custo2erWs)ard dis$ or ROM, Be"tron cou"d on" )a3e acuired t)e )undreds of

Microsoft C-ROMs found in res/ondentsW /ossession fro2 Microsoftdistri*utors or re/"icators.

Ho#e3er, res/ondents 2a$es no suc) c"ai2. ;)at res/ondentscontend is t)at t)ese C-ROMs #ere "eft to t)e2 for safe$ee/ing. Butneit)er is t)is c"ai2 tena*"e for "ac$ of su*stantiation. Indeed,res/ondents 'e) and C)ua, t)e on" res/ondents #)o 5"ed counter-aTda3its, did not 2a$e t)is c"ai2 in t)e OJ. 4)ese circu2stancesgi3e rise to t)e reasona*"e inference t)at res/ondents 2ass-/roducedt)e C-ROMs in uestion #it)out securing MicrosoftWs /rioraut)ori1ation.

&age 1+of /*
http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt48http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt48http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt49http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt49http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt50http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt50http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt51http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt52http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt53http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt54http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt54http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt48http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt49http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt50http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt51http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt52http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt53http://www.lawphil.net/judjuris/juri2005/jun2005/gr_147043_2005.html#fnt54


39/41

4)e counterfeit Znon-insta""erZ C-ROMs Sacri1 and Sa2iano *oug)tfro2 res/ondents a"so suTce to su//ort a 5nding of /ro*a*"e cause toindict res/ondents for unfair co2/etition under Artic"e


40/41

issue of #)et)er or not t)e Court of A//ea"s erred in 5nding t)at t)etria" court did not gra3e" a*use its discretion in dec"aring in t)e)earing for t)e uas)a" of t)e searc) #arrant t)at t)e co/rig)ted/roducts of MAN0Y are not origina" creations su*6ect to t)e /rotectionof RA D.

;e den t)e /etition.

4)e /o#er to issue searc) #arrants is eLc"usi3e" 3ested #it) t)e tria"

6udges in t)e eLercise of t)eir 6udicia" function.


41/41

t)e cri2e or cri2es in connection #it) #)ic) t)e searc) #arrant #asissued. Hence, suc) a cri2ina" action s)ou"d *e /rosecuted, orco22enced if not et instituted, and /rosecuted. 4)e outco2e of t)ecri2ina" action #i"" dictate t)e dis/osition of t)e sei1ed /ro/ert`

;e )a3e a"so ru"ed in Ching v.Salinas! Sr.! et al.

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