BAYANIHAN MUSIC vs.

BMG

G.R. No. 166337; March 7, 2005

FACTS:

Jose Mari Chan entered into a contract with Bayanihan Music Philippines, Inc.
whereunder the former assigned to the latter all his rights, interests and participation
over his musical composition "Can We Just Stop and Talk A While". On March 11,
1976, the parties entered into a similar contract over Chan's other musical composition
entitled "Afraid For Love To Fade".

On the strength of the abovementioned contracts, Bayanihan applied for and was
granted by the National Library a Certificate of Copyright Registration for each of the
two musical compositions, thus: November 19, 1973, for the song "Can We Just Stop
and Talk A While" and on May 21, 1980, for the song "Afraid for Love To Fade."

Apparently, without the knowledge and consent of petitioner Bayanihan, Chan

authorized his co-respondent BMG Records (Pilipinas) [BMG] to record and distribute
the aforementioned musical compositions in a then recently released album of singer
Lea Salonga.

In separate letters both dated December 7, 1999, petitioner Bayanihan informed

respondents Chan and BMG of its existing copyrights over the subject musical
compositions and the alleged violation of such right by the two. Demands were made on
both to settle the matter with Bayanihan. However no settlement was reached by the
parties.

Hence, on August 8, 2000, Bayanihan filed with the Regional Trial Court at Quezon City
a complaint against Chan and BMG for violation of Section 216 of Republic Act No.
8293, otherwise known as the Intellectual Property Code of the Philippines, with a
prayer for the issuance of Temporary Restraining Order (TRO) and/or writ of preliminary
injunction.

ISSUE:

1. WON BAYANIHAN being an assignee to act as publisher has a right protected

under the intellectual property code and thus can avail of Writ of injunction.

RULING:

1. NO, Unquestionably, respondent Chan, being undeniably the composer and author of
the lyrics of the two (2) songs, is protected by the mere fact alone that he is the creator
thereof, conformably with Republic Act No. 8293, otherwise known as the Intellectual
Property Code, Section 172.2 of which reads:

172.2. Works are protected by the sole fact of their creation, irrespective of their mode
or form of expression, as well as of their content, quality and purpose.

An examination of petitioner's verified complaint in light of the two (2) contracts sued
upon and the evidence it adduced during the hearing on the application for preliminary
injunction, yields not the existence of the requisite right protectable by the provisional
relief but rather a lingering doubt on whether there is or there is no such right. The two
contracts between petitioner and Chan relative to the musical compositions subject of
the suit contain the following identical stipulations:

7. It is also hereby agreed to by the parties herein that in the event the PUBLISHER
[petitioner herein] fails to use in any manner whatsoever within two (2) years any of the
compositions covered by this contract, then such composition may be released in favor
of the WRITER and excluded from this contract and the PUBLISHER shall execute the
necessary release in writing in favor of the WRITER upon request of the WRITER;

9. This contract may be renewed for a period of two-and-one-half (2 1/2) years at

the option of the PUBLISHER. Renewal may be made by the PUBLISHER by advising
the WRITER of such renewal in writing at least five (5) days before the expiration of this
contract.[9]cralaw

It would thus appear that the two (2) contracts expired on October 1, 1975 and March
11, 1978, respectively, there being neither an allegation, much less proof, that petitioner
Bayanihan ever made use of the compositions within the two-year period agreed upon
by the parties.

Anent the copyrights obtained by petitioner on the basis of the selfsame two (2)
contracts, suffice it to say 'that such purported copyrights are not presumed to subsist in
accordance with Section 218[a] and [b], of the Intellectual Property
Code,[10]cralaw because respondent Chan had put in issue the existence thereof.

It is noted that Chan revoked and terminated said contracts, along with others, on July
30, 1997, or almost two years before petitioner Bayanihan wrote its sort of
complaint/demand letter dated December 7, 1999 regarding the recent "use/recording of
the songs 'Can We Just Stop and Talk A While' and 'Afraid for Love to Fade,'" or almost
three (3) years before petitioner filed its complaint on August 8, 2000, therein
praying, inter alia, for injunctive relief. By then, it would appear that petitioner had no
more right that is protectable by injunction.