G.R. No.

195956, 1 March 2015

Case 127
Abadiano, Michael E.

FACTS
A criminal complaint was filed by ABS-CBN against GMA for violating Sections 177 and 211
of the Intellectual Property Code, as amended by RA 8293. This was because respondent
GMA aired footage of the arrival and homecoming of Angelo Dela Cruz from Iraq at NAIA
without the consent of the petitioner. The petitioner claimed that there was an agreement
between them and Reuters in exchange of the latter’s news and video material. Additionally,
Reuters ensured the petitioner the latter’s materials cannot be aired in the country. GMA was
a subscriber of Reuter’s and CNN live feeds. After having received the live feed of Angelo
Dela Cruz’s arrival and homecoming, it immediately aired the video from that news feed.
However, the respondent not only alleged its news staff was not aware of the agreement
between ABS-CBN and Reuters but also its staff had no knowledge that it aired petitioner’s
footage. On the 3rd of December 2004, the Assistant City Prosecutor found probable cause to
indict the staff of GMA namely, Dela Pena and Manalastas. Consequently, the respondents
appealed the Prosecutor’s resolution before the DOJ, and the latter ruled in favor of the
respondents and held that good faith may be raised as a defense in the case. Meanwhile, DOJ
Acting Secretary Alberto C. Agra issued a resolution which reversed Sec. Gonzales’s
resolution and found probable cause to charge Dela Pena, Manalastas, as well to indict
Gozon, Duavit Jr., Flores, and Soho. Subsequently, Court of Appeals granted the Petition for
Certiorari to reverse and set aside the resolution of the Acting DOJ and granted the issuance
of temporary restraining order and/or Writ Preliminary Injuction.

ISSUE
Whether or not there is probable cause to find respondents to be held liable criminally for the
case of copyright infringement under the Intellectual Property Law (RA 8293, as amended)?

HELD
The petition of ABS-CBN was partially granted by the Supreme Court. An order was directed
to the Q.C. Branch 93 to continue the proceedings against the staff of GMA, Dela Pena and
Manalastas due to copyright infringement. The other respondents, Gozon, Duavit Jr., Flores,
and Soho were held not liable for the criminally; act of copyright infringement. It was held that
their membership in GMA’S Board of Directors doesn’t mean that they have knowledge,
approval, or participation in the criminal act, as there is a need for the direct or active
participation in such act. Also, there was lack of proof they actively participated or exercised
moral ascendancy over Dela Pena and Manalastas.

The Court held that the respondent’s mere act of rebroadcast of petitioner’s news footage
without the latter’s authority creates probable cause to find the former’s personnel criminally
liable for violating the provisions of Intellectual Property Code, particularly Section 216-217 of
RA 8293, as amended, since both have not exercised diligence in their function to prevent that
the footage from being aired on television. They were aware there would be consequences in
carrying ABS-CBN footage in their broadcast.