Copyrights

Copyright Infringement | Copyrights | INTELLECTUAL PROPERTY

Topic: Mercantile and Taxation Laws – Intellectual Property – Copyrights – Copyright Infringement

Overview of Copyright Infringement in the Philippines

Copyright infringement occurs when a copyrighted work is used, copied, or distributed without permission from the copyright owner. Under Philippine law, copyright infringement falls under the provisions of the Intellectual Property Code of the Philippines (Republic Act No. 8293, as amended by RA 10372), which protects the rights of creators over their original works. Copyrighted works include literary, artistic, and derivative works, and their protection is vital for maintaining the integrity of intellectual property.

I. Elements of Copyright Infringement

To establish a claim for copyright infringement in the Philippines, the following elements must be proven:

  1. Ownership of a Valid Copyright:

    • The complainant must prove that the work is original and falls within the copyrightable subject matter defined in the Intellectual Property Code.
    • The author or creator is presumed to be the copyright owner unless there is evidence to the contrary.
    • For works created within employment or contractual agreements, ownership may vest in the employer or contractor, depending on the contract terms.

  2. Infringer's Access to the Copyrighted Work:

    • There must be proof that the infringer had access to the original work, indicating a reasonable possibility that copying could have occurred.

  3. Substantial Similarity Between Works:

    • The allegedly infringing work must be substantially similar to the original copyrighted work. Minor or trivial differences do not suffice to negate a finding of substantial similarity.

  4. Proof of Unauthorized Use:

    • The infringing party must have reproduced, distributed, displayed, or performed the copyrighted work without permission.

II. Forms of Copyright Infringement

  1. Direct Infringement:

    • Involves directly copying, distributing, or displaying the copyrighted work without permission.

  2. Secondary or Contributory Infringement:

    • Occurs when an individual or entity knowingly aids or contributes to another's copyright infringement.
    • Examples include hosting a website with infringing content or distributing equipment meant for illegal copying.

  3. Vicarious Infringement:

    • Refers to the liability of a party that benefits financially from another's infringement while having the right and ability to control the infringer’s actions.
    • This often applies to business owners or managers who allow infringing activities on their premises.

III. Penalties for Copyright Infringement

Under Philippine law, copyright infringement can result in civil, criminal, and administrative liabilities:

  1. Civil Penalties:

    • Damages: The infringer may be liable for actual damages suffered by the copyright owner, including lost profits or unjust enrichment.
    • Injunctions: Courts can issue preliminary or permanent injunctions to cease the infringing activities.
    • Delivery or Destruction of Infringing Goods: Courts may order the delivery, destruction, or disposal of all copies and equipment used in infringement.

  2. Criminal Penalties:

    • Fines and Imprisonment: The infringer may face a fine ranging from PHP 50,000 to PHP 1,500,000, and imprisonment from one year to nine years, depending on the extent and nature of the infringement.
    • Repeat offenders are subject to higher penalties, and copyright infringement for commercial gain attracts the maximum penalties.

  3. Administrative Penalties:

    • The Intellectual Property Office (IPO) may impose administrative fines or suspend business permits for companies engaged in copyright infringement.

IV. Defenses Against Copyright Infringement Claims

  1. Fair Use Doctrine:

    • Philippine copyright law allows for "fair use" of a work without permission, which includes criticism, comment, news reporting, teaching, and research.
    • Factors to consider for fair use:
      1. Purpose and character of use (commercial or educational).
      2. Nature of the copyrighted work.
      3. Amount and substantiality of the portion used.
      4. Effect of the use on the market for the original work.

  2. License or Authorization:

    • If the alleged infringer can prove that they obtained proper licensing or authorization, they can avoid liability.

  3. Independent Creation:

    • If the alleged infringer can demonstrate that their work was independently created without copying the original, it negates the similarity claim.

  4. Expiration of Copyright:

    • Copyright protection is limited by time. For instance, copyright protection for literary and artistic works typically lasts for the life of the author plus 50 years after their death. Once expired, works fall into the public domain.

  5. De Minimis Doctrine:

    • If the infringement is too trivial, the de minimis doctrine may apply, suggesting that the copying is so insignificant that it doesn't constitute infringement.

V. Procedural Aspects

  1. Filing a Copyright Infringement Complaint:

    • The copyright owner or authorized agent can file a civil or criminal complaint in the Regional Trial Court with jurisdiction over the matter.
    • IPO may handle administrative complaints, particularly where the infringement affects public welfare.

  2. Temporary Restraining Orders (TRO) and Preliminary Injunctions:

    • Courts may issue a TRO or preliminary injunction upon filing the complaint to immediately stop the infringing acts, especially if continued infringement may cause irreparable harm to the copyright owner.

  3. Evidence Gathering and Preservation:

    • Copyright owners are encouraged to gather evidence, such as infringing copies, witnesses, and records of economic loss, which will be crucial for proving infringement.

VI. Recent Developments and Case Law

Philippine courts have increasingly recognized the value of intellectual property rights and the need to enforce these rights robustly. Case law has underscored the importance of protecting copyrighted works, especially in the digital realm, where infringement is rampant. Court decisions have provided guidance on handling complex issues like:

  • Determining substantial similarity for digital works and software.
  • Considering economic harm in assessing damages.
  • Applying the fair use doctrine for cases involving educational and transformative purposes.

The Intellectual Property Office of the Philippines (IPOPHL) has also enhanced its role by collaborating with other agencies to combat online piracy, highlighting the importance of IP enforcement in the digital age.

VII. Conclusion

Copyright infringement in the Philippines is a multifaceted area of law governed by strict procedural requirements, diverse forms of infringement, and complex defenses. Philippine courts and the IPO continue to uphold the protection of copyright holders while balancing the interests of public access, creativity, and technological advancement. Copyright owners should diligently protect their rights through registration, licensing, and vigilant monitoring, while infringers should be aware that the legal consequences of copyright infringement can be severe and far-reaching.

Limitations on Copyright | Copyrights | INTELLECTUAL PROPERTY

Limitations on Copyright in Philippine Law

The Philippines has adopted specific limitations and exceptions to copyright under Republic Act No. 8293, otherwise known as the Intellectual Property Code of the Philippines. These limitations aim to balance the protection of creators’ rights with the public’s access to knowledge, information, and creative content. Here is a comprehensive guide to the relevant limitations on copyright as stipulated under Philippine law.

I. Fair Use Doctrine

Section 185 of the IP Code establishes the doctrine of Fair Use, a vital limitation that allows certain uses of copyrighted materials without infringement. Fair use is determined based on the following factors:

  1. Purpose and Character of the Use - Non-commercial, educational, or research uses are more likely to be deemed fair use.
  2. Nature of the Copyrighted Work - Use of factual or publicly available works, as opposed to highly creative works, is more likely to qualify as fair use.
  3. Amount and Substantiality of the Portion Used - Limited use or the use of less substantial parts of a work (not the “heart” of the work) may support a finding of fair use.
  4. Effect on the Market for or Value of the Copyrighted Work - Uses that do not significantly impact the market value or potential sales of the original work are more likely to be deemed fair.

Typical cases of fair use include news reporting, commentary, criticism, research, teaching, and scholarship. However, each use must be assessed case-by-case, based on the above factors.

II. Reproduction and Communication to the Public for Judicial, Legislative, and Administrative Proceedings (Section 184.1)

Section 184.1 permits the reproduction and communication to the public of copyrighted work in official government activities:

  • This exception allows use in judicial, legislative, and administrative proceedings.
  • It also includes uses in government reports or other official matters that require dissemination to the public for transparency or public record purposes.

This exception supports the principle of public interest and government transparency, allowing the public access to documents, court opinions, or legislative proceedings that might otherwise contain copyrighted materials.

III. Private and Personal Use (Section 187)

Under Section 187, the IP Code permits reproduction of a published work exclusively for private and personal use. This includes:

  • Photocopying or reproducing sections of books or materials for personal study.
  • Recording broadcasts or performances for private viewing.

The law places limits on the reproduction to ensure it remains strictly for personal or private use, without further dissemination or public sharing.

IV. Educational and Non-Profit Use (Sections 187.1 and 188)

Philippine law provides specific allowances for educational purposes:

  1. Section 187.1 - Allows the use of copyrighted material in a classroom setting or for educational instruction as long as it is a minor part of the work and does not conflict with the rights of the copyright owner.
  2. Section 188 - Allows for reproduction of works for use by public libraries, non-profit educational institutions, and similar establishments. However, this is limited to single copies and is intended solely for purposes like preservation, research, and private study.

These provisions promote access to educational resources and ensure that copyright law does not hinder educational advancement and dissemination of knowledge.

V. Performance, Display, and Exhibit Exceptions (Section 184.1(b))

Section 184.1(b) permits the performance, display, or exhibit of works in certain circumstances without the author’s consent. These include:

  1. Performance of a work in public if it is given without payment to any performer, organizer, or admission fee (e.g., amateur performances in educational institutions).
  2. Display or exhibit of works in museums or galleries as part of their collections or educational outreach programs.
  3. Broadcasting a live public event to educate or inform the public, without a commercial purpose.

This allows non-commercial and educational displays or performances, helping ensure public access to culture and information.

VI. Libraries and Archives (Sections 187 and 188)

The IP Code includes specific exceptions for libraries and archives. Section 187 allows libraries and similar institutions to make a single copy of a work for purposes of preservation, research, or private study. Section 188 allows:

  • Reproduction of works by libraries and archives, if the work is not available in the Philippines or is rare.
  • Temporary copies necessary for preservation of collections, especially if original works are at risk of deterioration or damage.

These provisions support cultural and knowledge preservation, allowing institutions to maintain access to otherwise inaccessible materials.

VII. Quotation and Parody (Section 184.1(d))

Section 184.1(d) provides for the quotation of short passages and the use of works for parody, caricature, and pastiche. Specific conditions are:

  • Quotations must be limited to what is “compatible with fair practice.”
  • Parody and satire are permitted to ensure artistic freedom, although they must not serve as a substitute for the original work.

These exceptions enable critical, transformative, and creative uses of copyrighted works, ensuring copyright law supports a free and dynamic culture.

VIII. Temporary Reproduction by Broadcasting Organizations (Section 190.1)

Under Section 190.1, broadcasting organizations are permitted to make temporary recordings of works for the purposes of transmission:

  • Such temporary recordings should be used only for authorized transmissions.
  • The recordings are destroyed within a limited period following the broadcast.

This allows broadcasting organizations to efficiently manage their operations while respecting copyright protections.

IX. Limitations for Persons with Disabilities (Section 185.1)

The IP Code includes provisions to facilitate access to copyrighted materials for persons with disabilities:

  • Special formats (e.g., Braille, audio recordings) may be created for personal use without infringing copyright.
  • This is in line with the Marrakesh Treaty, to which the Philippines is a signatory, ensuring access to works for visually impaired or otherwise print-disabled persons.

This exception aligns with the Philippines’ commitment to making educational and cultural content accessible to all members of society, regardless of physical or sensory impairments.

X. Government Use (Section 184.1(a))

Philippine copyright law allows the government to use copyrighted material for non-commercial purposes, especially for purposes related to public interest or national security. Uses might include:

  • Incorporation of copyrighted materials into governmental publications or information campaigns.
  • Reproduction and dissemination of works necessary for public safety or educational programs under government authority.

This promotes access to vital information that might otherwise be limited by copyright barriers.

Conclusion

The limitations on copyright in Philippine law, as defined by the Intellectual Property Code of the Philippines, aim to balance the rights of authors and creators with the public’s right to access knowledge, education, culture, and information. By detailing specific exceptions—such as fair use, educational provisions, library usage, and access for persons with disabilities—the law seeks to provide a flexible, fair, and socially responsible framework. These limitations are vital to ensuring that copyright law serves both the rights of creators and the public good, fostering a culture that values both innovation and access to knowledge.

Ownership of a Copyright | Copyrights | INTELLECTUAL PROPERTY

Ownership of Copyright Under Philippine Law

Under Philippine law, copyright is primarily governed by Republic Act No. 8293, known as the Intellectual Property Code of the Philippines (IP Code), enacted in 1997 and further amended by subsequent legislation. Here is a comprehensive analysis of the topic of copyright ownership, covering everything from the basics of copyrightability to the complex nuances surrounding transfer and licensure in the Philippines.

I. Copyrightable Works

Copyright is granted to authors of original intellectual creations in the literary, scholarly, scientific, and artistic domains. Copyrightable works include:

  1. Literary and Artistic Works: This category encompasses books, poems, articles, musical works, films, and other similar creations.
  2. Derivative Works: Works based on original pieces, such as translations or adaptations, qualify for copyright protection, though the original author’s rights must be respected.
  3. Non-Copyrightable Elements: Mere ideas, news, government publications, statutes, and mere compilations of data are not subject to copyright.

For a work to be protected under copyright law, it must be an original creation, fixed in a tangible medium of expression.

II. Ownership of Copyright

Ownership of a copyright is distinct from the ownership of the physical object in which the copyrighted work is embodied. It is essential to understand the parties who may claim ownership under the IP Code.

  1. General Rule: Author as Owner

    • The author or creator of a work is generally presumed to be the copyright owner.
    • Moral Rights: In addition to economic rights, authors have moral rights, including the right to attribution and the right to protect their work from derogatory treatment.

  2. Joint Ownership

    • When two or more individuals jointly create a work, they are co-owners of the copyright, unless there is a written agreement specifying otherwise.
    • Each co-owner has an undivided interest in the whole work but must account to the other for any profits derived from the work.

  3. Works Created by Employees

    • Employer-Owned Works: If an employee creates a work in the course of employment, and if the work is created as part of their job duties, the employer is presumed to be the copyright owner, unless agreed otherwise.
    • Freelance or Commissioned Works: For works created by independent contractors or freelancers, the creator retains copyright unless there is a written agreement transferring ownership to the hiring party.

  4. Government Works

    • Works created by government employees in their official capacity are generally in the public domain, unless otherwise stipulated by the agency or department.

  5. Special Cases: Collective Works and Audiovisual Works

    • Collective Works: In collective works (e.g., anthologies), copyright ownership typically resides with the entity assembling the collective work, though the original authors retain rights over their individual contributions unless otherwise agreed.
    • Audiovisual Works: Copyright in audiovisual works (e.g., movies) is owned by the producer, who holds rights to exploit the entire work. However, individual contributors (such as screenwriters and directors) may retain moral rights.

III. Economic and Moral Rights of Copyright Owners

Copyright owners possess several economic rights that allow them to control the use of their work. They also have moral rights that protect the personal and reputational interests related to the work.

  1. Economic Rights

    • The copyright owner has the exclusive right to:
      • Reproduce the work
      • Distribute copies of the work
      • Perform the work publicly
      • Display the work publicly
      • Create derivative works based on the original

  2. Moral Rights

    • Moral rights allow the author to claim authorship, object to modifications that could harm their reputation, and withdraw the work from the public domain under certain conditions. These rights remain with the author even after the transfer of economic rights.

IV. Transfer of Copyright Ownership

Ownership of economic rights may be transferred in whole or in part through various means, but moral rights are inalienable and cannot be transferred.

  1. Assignment of Rights

    • The copyright owner may transfer their economic rights by assignment, which must be in writing and signed by the copyright owner.
    • Assignments can be total or partial and are governed by the terms set out in the assignment agreement.

  2. Licensing

    • Copyright can also be licensed, allowing others to use the work under specific conditions, without transferring ownership.
    • Licenses may be exclusive or non-exclusive:
      • Exclusive License: Only the licensee may exploit the licensed rights, and the licensor is excluded from using those rights.
      • Non-Exclusive License: The copyright owner retains the right to license the work to multiple users.

  3. Statutory Limitations on Transfer

    • Under the IP Code, certain rights may be retained by the author despite an assignment, especially moral rights.

  4. Duration of Copyright Protection and Renewal

    • The duration of copyright protection depends on the type of work:
      • Literary and Artistic Works: Lifetime of the author plus 50 years.
      • Audiovisual and Collective Works: 50 years from the date of publication.
    • After the expiration of the copyright term, the work enters the public domain, and anyone may use it freely.

V. Enforcement of Copyright Ownership

The IP Code provides mechanisms for copyright holders to enforce their rights and seek remedies in cases of infringement.

  1. Civil Remedies

    • Copyright owners can seek an injunction to stop further infringement, claim actual or statutory damages, and recover profits made by the infringer.

  2. Criminal Remedies

    • Infringement can also be a criminal offense, punishable by imprisonment and fines. However, criminal action is typically reserved for severe and deliberate violations.

  3. Administrative Remedies

    • The Intellectual Property Office of the Philippines (IPOPHL) provides an avenue for resolving disputes through mediation or administrative proceedings.

  4. Technological Protection Measures (TPM)

    • Copyright holders can apply TPMs to prevent unauthorized access or copying of their works. Circumventing these protections is prohibited by law.

VI. Special Considerations and Updates in Philippine Copyright Law

  1. Digital Rights Management

    • Copyright law increasingly recognizes digital rights management (DRM) as a critical area, especially for online content. DRM tools help copyright holders manage and protect digital versions of their works.

  2. International Agreements

    • The Philippines is a signatory to various international treaties such as the Berne Convention and the WIPO Copyright Treaty. These agreements influence domestic laws by establishing standards for copyright protection globally.

Summary

The ownership of copyright in the Philippines is an intricate subject, with the general rule that the author holds the rights, subject to exceptions for employment, government works, and specific cases like audiovisual works. Transfers of ownership are possible through assignment or licensing, although moral rights remain with the author. The IP Code ensures both economic and moral rights protection and provides mechanisms for enforcement, while also adapting to digital-age requirements through DRM protections and adherence to international treaties.

The field of copyright is continuously evolving, especially with technological advancements and international influence, making it essential for copyright owners and users in the Philippines to stay informed about their rights and obligations.

Rights Conferred by Copyright | Copyrights | INTELLECTUAL PROPERTY

Here is a thorough exposition on Rights Conferred by Copyright under Philippine law, with a focus on its nuances within mercantile and taxation laws.

Copyright Law in the Philippines: Legal Foundations

In the Philippines, copyright protection is governed by the Intellectual Property Code of the Philippines (Republic Act No. 8293), which aligns with international standards under the Berne Convention and the TRIPS Agreement. This law provides the legal framework for protecting original works of authorship, ensuring that creators have exclusive rights to their creations, whether literary, artistic, or derivative works. Copyright exists from the moment of creation and is conferred without the need for registration, though registration can offer additional procedural benefits.

Scope and Duration of Copyright Protection

  1. Protected Works: Copyright in the Philippines protects a broad range of works, including:

    • Literary, dramatic, musical, and artistic works;
    • Audio-visual works, films, sound recordings, and broadcasts;
    • Derivative works, adaptations, arrangements, and collections of work;
    • Computer programs and databases;
    • Architectural plans and structures;
    • Other intellectual creations as designated by law.

  2. Duration of Protection:

    • Literary and Artistic Works: Lifetime of the author plus 50 years after death.
    • Photographic Works and Audio-Visual Works: 50 years from publication date.
    • Anonymous or Pseudonymous Works: 50 years from publication unless the author becomes known.
    • Broadcasts: 20 years from date of broadcast.

Exclusive Rights of Copyright Owners

Copyright confers a set of exclusive economic and moral rights to the author or copyright holder, which can be exploited or licensed to third parties:

  1. Economic Rights: These rights allow the copyright holder to commercially benefit from the work:

    • Reproduction: The right to reproduce the work in any form, including electronic, photographic, or printed formats.
    • Transformation and Adaptation: The right to transform, adapt, or arrange the work.
    • Public Distribution: The right to distribute copies of the work to the public by sale, rental, lease, or lending.
    • Public Display: The right to display the work publicly, either in physical or digital form.
    • Public Performance: The right to perform the work publicly, which covers live or recorded performances, broadcasts, or streaming.
    • Communication to the Public: The right to communicate the work to the public through broadcasting, transmission, or other means.
    • Translation: The right to translate the work into other languages or formats.

  2. Moral Rights: These rights protect the personal connection between the author and the work and include:

    • Right of Attribution: The author’s right to claim authorship.
    • Right to Make Modifications: The author’s right to modify the work or withhold permission for any distortion or mutilation of the work.
    • Right of Integrity: Protecting the reputation of the author by preventing any modifications that may harm their reputation.
    • Right to Withdraw the Work from Circulation: The author may choose to withdraw the work from the public domain, although subject to equitable compensation for those with acquired rights.

  3. Related Rights:

    • The rights of performers, producers of sound recordings, and broadcasting organizations are also protected under copyright law.
    • Performers have the right to prevent unauthorized recording or broadcasting of their performances.
    • Producers have the right to control reproductions of sound recordings.
    • Broadcasting organizations have exclusive rights over the broadcast signals they produce.

Limitations and Exceptions (Fair Use Doctrine)

Philippine law recognizes fair use exceptions, allowing limited use of copyrighted works without permission, provided the use does not infringe the economic rights of the copyright holder. This includes:

  • Research and Private Study: Limited copying for personal use or educational research.
  • Criticism, Comment, and News Reporting: Use for purposes of review, criticism, or news coverage.
  • Parody and Satire: Limited copying for creating transformative works, such as parodies.
  • Educational Purposes: Use in classrooms, subject to limitations.

To determine if a use qualifies as fair, courts evaluate factors like the purpose, nature, amount, and effect on the work’s market value.

Mercantile Implications of Copyright

  1. Commercial Exploitation:

    • Copyright owners can license or assign rights to third parties for exploitation, creating revenue streams through royalties or sale.
    • Licensing must be clear in scope, often specifying the term, geography, and exact rights granted.

  2. Taxation on Copyright Transactions:

    • Income derived from licensing and royalty agreements is subject to income tax under the Philippine Tax Code.
    • Royalties are also subject to withholding tax, with rates varying depending on treaties (e.g., the Philippines’ double-taxation treaties).
    • Capital gains tax applies if copyright ownership is transferred as a capital asset.

  3. Cross-Border Transactions:

    • When dealing with international licenses or assignments, copyright holders may benefit from lower withholding tax rates if covered by double-taxation treaties.
    • Foreign copyrights utilized in the Philippines are subject to local tax if deemed income from Philippine sources.

  4. Valuation for Tax Purposes:

    • Intellectual property rights are treated as intangible assets, and their valuation depends on potential revenue-generating capacity.
    • Transfers involving copyright may be scrutinized by tax authorities to ensure compliance with transfer pricing rules, especially for multinational companies.

  5. Tax Incentives for Copyright Owners:

    • Copyright-intensive industries may qualify for tax incentives under the Philippine Board of Investments (BOI), which provides deductions or exemptions for companies engaged in intellectual property exploitation, development, or innovation.

Infringement and Enforcement Mechanisms

  1. Infringement Definition: Copyright infringement occurs when a party violates the exclusive rights of a copyright holder without permission. This can include unauthorized reproduction, distribution, public performance, or adaptation.

  2. Civil and Criminal Penalties:

    • Civil remedies include injunctions, actual damages, moral damages, exemplary damages, and attorney’s fees.
    • Criminal penalties apply to severe infringements, including fines and imprisonment for counterfeit distribution, unauthorized reproduction, or commercial-scale infringement.

  3. Enforcement through the Intellectual Property Office (IPO):

    • The Intellectual Property Office of the Philippines (IPO) has an enforcement arm that handles complaints, mediates disputes, and can issue cease-and-desist orders.
    • IPO allows for Alternative Dispute Resolution (ADR) as a method to settle disputes involving copyright claims efficiently.

  4. Border Measures:

    • Philippine Customs authorities, under coordination with IPO, can seize or prevent the importation of counterfeit goods.
    • Copyright holders can file a complaint with Customs for surveillance and inspection to protect against infringement.

Conclusion

In the Philippines, copyright law grants substantial exclusive rights to creators, allowing them to control and profit from their works while ensuring moral rights are respected. However, these rights are balanced with fair use provisions and are subject to various tax implications and regulatory requirements, especially for commercial exploitation. The legal mechanisms to enforce these rights are robust, with options for civil, criminal, and administrative recourse. The interplay between intellectual property rights and mercantile laws, particularly in the realm of taxation, illustrates the complexity of navigating copyright in commercial ventures in the Philippines.

This analysis provides an in-depth understanding of copyright rights, enforcement, and their intersection with mercantile and tax laws in the Philippines, helping you to navigate this intricate legal landscape confidently.

Non-Copyrightable Works | Copyrights | INTELLECTUAL PROPERTY

Non-Copyrightable Works in Philippine Law: An In-Depth Analysis

Under Philippine intellectual property law, particularly the Intellectual Property Code of the Philippines (Republic Act No. 8293), copyright protection does not extend to certain types of works, commonly referred to as "non-copyrightable works." Understanding what constitutes non-copyrightable material is essential for legal practitioners, especially in fields where intellectual property concerns intersect with technology, media, and business. This guide outlines and analyzes the key categories of non-copyrightable works, with insights from relevant cases, policy interpretations, and practical considerations.

I. Statutory Basis for Non-Copyrightable Works

The primary legislation governing copyright law in the Philippines, Republic Act No. 8293 (RA 8293), provides specific guidance on copyrightable subject matter. Section 172 defines copyrightable works, and Section 175 explicitly outlines types of works not covered by copyright protection. This section's clarity helps delineate which works fall outside copyright protection.

According to Section 175, the following materials are explicitly classified as non-copyrightable:

  1. Laws, Rules, and Official Issuances

    • This includes legislative enactments, administrative regulations, judicial decisions, and public records.
    • Rationale: These documents belong to the public domain because they are created by public officers as part of their duties and are necessary for public awareness and compliance. Additionally, copyright on these would restrict access to legal, regulatory, and judicial information, which would contravene public policy favoring transparency.

  2. Government Works Created by Public Officers and Employees

    • This encompasses works produced by government agencies or public officers within the scope of their employment, including reports, statistical data, and other official documents.
    • Exceptions exist for works created under a contractual arrangement where copyright ownership is specifically assigned.
    • Implication: Works created under government commissions or collaborations with private entities may retain copyright if there is a clear contractual stipulation. However, these works must meet specific terms that separate them from typical government-created materials.

  3. News of the Day and Mere Facts

    • News itself, including current events, cannot be copyrighted, although the expression or way it is presented can be.
    • Explanation: RA 8293 protects only the “original expression” of an idea and not the idea or fact itself. For example, a news article’s narrative style may be copyrighted, but the facts it conveys remain in the public domain.

  4. Ideas, Procedures, Systems, Methods, and Principles

    • These non-copyrightable items extend to mathematical formulas, scientific theories, and business methods.
    • While these can form the basis for patents (if novel and applicable), they are excluded from copyright protection because they are conceptual frameworks, not fixed expressions of an idea.

  5. Standard Forms, Familiar Phrases, and Expressions

    • Common phrases, proverbs, slogans, and simple forms used in ordinary activities (such as blank forms) are not copyrightable.
    • Rationale: The lack of original expression in these elements renders them outside the scope of copyright. Copyright law protects unique expression, not standard language or formats.

II. Additional Judicial and Administrative Interpretations

Philippine courts and intellectual property tribunals have further clarified these exclusions in several key cases:

  • Case Law on Public Domain Works: Philippine jurisprudence has consistently upheld the view that government-created works are non-copyrightable when performed within an official capacity. This aligns with the principle that government works belong to the people.

  • Media and Broadcasting Interpretations: Cases involving media and news agencies underscore that while factual reporting on events is not protected, the unique expression (e.g., an article’s specific style) is safeguarded. This demarcation aims to prevent monopolization of information dissemination while encouraging creative journalistic expression.

III. Theoretical Underpinnings and Policy Rationales

The Intellectual Property Office (IPO) of the Philippines and legislative history indicate that non-copyrightability stems from three main policy considerations:

  1. Public Access to Essential Information: Works like laws, rules, and government documents must remain freely accessible to promote public knowledge, legal compliance, and civic engagement.
  2. Promotion of Creativity and Innovation: By reserving copyright for original, expressive works, the law encourages creativity while ensuring that fundamental ideas and systems remain accessible for further development and application.
  3. Avoidance of Monopolistic Control over Knowledge: Limiting copyright to expressions, rather than ideas or factual information, prevents the monopolization of knowledge and supports democratic information-sharing principles.

IV. Practical Implications for Various Sectors

For legal and commercial practitioners, understanding the limits of copyright protection has several implications:

  • Media and Publishing: Journalists and publishers must navigate copyright law by emphasizing original expression in their reporting. While they can protect their specific writing style, the underlying information is accessible to all.

  • Software and Technology Development: Tech companies must be cautious about relying on copyright for protection of ideas, algorithms, or processes, which are often better protected through patents, trade secrets, or specific contractual agreements.

  • Legal Document Drafting: Lawyers drafting official documents for government agencies must acknowledge that these works typically fall into the public domain unless explicitly specified otherwise in a contract.

V. The Emerging Challenges in Digital and Internet Contexts

The rise of digital content and internet-based information sharing has raised new questions about the limits of copyright law. Social media, data aggregation, and online publishing have led to cases where the boundaries between copyrightable and non-copyrightable works blur. As a response, the IPO has occasionally issued guidelines clarifying digital copyright issues, although these are continually evolving.

  • User-Generated Content and News Aggregators: Social media and news aggregation sites pose challenges as users can share news, opinions, and facts instantly. While these platforms can copyright their overall design and specific content, the factual data or news they share remains non-copyrightable.

  • Data Collection and Analysis: In sectors where data analysis and algorithms are central, such as fintech and marketing, companies must often rely on trade secret protection or patents rather than copyright to protect proprietary methods.

VI. Conclusion

In the Philippines, non-copyrightable works are clearly defined by RA 8293 and further clarified through court rulings and IPO guidelines. The law’s approach to non-copyrightable works reflects a commitment to public access, creativity, and innovation. Legal practitioners must stay updated on emerging interpretations in the digital age to effectively navigate these areas. As technology evolves, further clarifications and perhaps legislative adjustments may be required to address the complexities of copyright law in an increasingly digital society.

This analysis provides a robust foundation for understanding non-copyrightable works, vital for protecting intellectual property while adhering to the Philippines' legal framework and public policy objectives.

Copyrightable Works | Copyrights | INTELLECTUAL PROPERTY

MERCANTILE AND TAXATION LAWS > V. INTELLECTUAL PROPERTY > C. Copyrights > 1. Copyrightable Works

In the Philippines, copyright law is governed by the Intellectual Property Code of the Philippines (Republic Act No. 8293), which delineates the scope of intellectual property rights, including copyrightable works. This section will explore all relevant aspects of what constitutes copyrightable works under Philippine law, addressing the rights of creators, exclusions, and nuances of copyright protection.

1. Definition and Scope of Copyrightable Works

  • General Definition: Copyright is the legal protection granted to the creators of original literary, scholarly, scientific, artistic, and derivative works. It grants the creator an exclusive right to use, distribute, and benefit economically from their creations.
  • Statutory Basis: Section 172 of the Intellectual Property Code outlines the types of works eligible for copyright protection.

2. Categories of Copyrightable Works

The following categories, as provided in Section 172, represent types of works that qualify for copyright:

  • Literary and Artistic Works:
    • Books, pamphlets, articles, periodicals, and other written works.
    • Lectures, sermons, addresses, dissertations, prepared for oral delivery.
    • Letters and any form of written communication.
    • Musical compositions, whether with or without lyrics.
    • Dramatic, choreographic, and pantomimic works, or works prepared for stage or production.
    • Graphic works, paintings, sculptures, and other works of fine art.
    • Photographic works, cinematographic works, and other audio-visual creations.
    • Computer programs and similar works, which are protected as literary works.
  • Derivative Works: Works that are derived from pre-existing works, like adaptations, translations, and arrangements, are copyrightable as long as they have significant original creative input.
  • Collective Works: Works resulting from the combination of multiple authors’ contributions, such as anthologies and encyclopedias, are also protected if they present a creative arrangement.

3. Requirements for Copyright Protection

  • Originality: For a work to be copyrightable, it must exhibit originality. This does not require novelty but rather that the work be independently created and that it involves some degree of creativity.
  • Fixation: The work must be fixed in a tangible medium, meaning it must exist in a form that can be perceived, reproduced, or communicated for a period of time, like paper, recording, digital files, or sculptures.

4. Non-Copyrightable Works

Certain works are not eligible for copyright protection under Philippine law, primarily because they lack originality, are too factual, or are intended for public use without restriction. These include:

  • Ideas, Procedures, and Systems: Abstract ideas, methods, procedures, processes, systems, discoveries, or concepts are not protected.
  • Official Government Works: This includes statutes, regulations, court decisions, speeches delivered in public hearings, and other public documents.
  • Public Domain: Works that have entered the public domain due to the expiration of copyright or because the copyright owner has waived rights.

5. Duration of Copyright Protection

  • General Rule: For literary and artistic works, copyright generally lasts for the lifetime of the author plus fifty (50) years after their death.
  • Anonymous or Pseudonymous Works: For works published anonymously or under a pseudonym, protection lasts fifty (50) years from the date of publication.
  • Audiovisual Works: The copyright for audiovisual works, such as cinematographic films, lasts fifty (50) years from the date of publication or completion.
  • Photographic Works: Copyright protection for photographs and other similar works lasts fifty (50) years from creation or publication.

6. Economic and Moral Rights of Authors

  • Economic Rights: These include the rights to reproduce the work, distribute copies, perform or display the work publicly, and make derivative works. These are often transferable and assignable, and they can be licensed to others.
  • Moral Rights: Authors retain moral rights to claim authorship, make modifications, prevent any derogatory action against the work, and control its future uses in a way that might harm their honor or reputation. Moral rights are non-transferable and last during the author’s lifetime and up to fifty (50) years post-mortem.

7. Fair Use and Limitations on Copyright

Certain uses of copyrighted material do not constitute infringement, provided that they fall under the doctrine of "fair use." This includes:

  • Fair Use Provisions: These allow for limited use of copyrighted material for purposes such as criticism, comment, news reporting, education, and research. Courts evaluate fair use based on purpose, nature, amount, and effect on market value.
  • Other Limitations: Private performance, reproduction for personal use, quotations for commentary, and public speeches may be exempt from infringement claims.

8. Registration and Deposits

  • Optional Registration: Copyright is acquired automatically upon creation, and registration with the National Library or the Intellectual Property Office of the Philippines is optional but provides evidence in case of a dispute.
  • Deposits: Certain works may require deposit copies to be submitted to relevant authorities, which aids in documenting and preserving cultural materials.

9. Transfer and Licensing of Copyright

  • Assignments and Licensing: Copyright holders may transfer or license their economic rights to others through contracts. This transfer or licensing agreement must be documented in writing.
  • License Types: Exclusive and non-exclusive licenses are recognized, allowing rights holders to permit others to use their work under certain conditions and for a specified period.

10. Infringement and Remedies

  • Infringement Criteria: Unauthorized use, reproduction, distribution, or public display of copyrighted works constitutes infringement.
  • Remedies: Remedies for infringement include damages, injunctions, and, in some cases, criminal penalties.
  • Safe Harbor and Limitations: Certain intermediaries, such as internet service providers, have safe harbor protection, provided they comply with take-down procedures for infringing content upon notice.

11. International Considerations

The Philippines is a member of various international treaties on copyright, such as the Berne Convention and TRIPS Agreement, which establishes minimum standards for copyright protection and enables reciprocal enforcement across member countries.

Conclusion

Philippine copyright law under RA 8293 provides a robust framework for protecting the economic and moral rights of authors over copyrightable works. Through the defined categories, requirements, and protections, authors and creators are afforded substantial control over their creations, while also balancing public access through fair use and other limitations. As the digital environment grows, these laws continue to evolve, adapting to new challenges and advancements in protecting intellectual property in the Philippines.

Copyrights | INTELLECTUAL PROPERTY

Comprehensive Guide on Copyrights in the Philippines under Mercantile and Taxation Laws

I. Overview of Copyright Law in the Philippines

Copyright is a form of intellectual property that grants creators exclusive rights to their literary, artistic, and scholarly works. In the Philippines, copyright protection is primarily governed by the Intellectual Property Code of the Philippines (Republic Act No. 8293), which provides comprehensive rules on the scope, ownership, and enforcement of copyright, as well as the penalties for infringement. RA 8293 aligns Philippine copyright laws with global standards, notably under the Berne Convention for the Protection of Literary and Artistic Works and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

II. Key Concepts in Philippine Copyright Law

  1. Protected Works
    Copyright protection applies to original intellectual creations in the literary, scientific, and artistic domains. These include:

    • Books, pamphlets, articles, and other writings;
    • Periodicals and newspapers;
    • Lectures, sermons, addresses, dissertations prepared for oral delivery;
    • Musical compositions, with or without words;
    • Dramatic or dramatico-musical compositions, choreographic works;
    • Artistic works, such as paintings, sculptures, drawings, and works of architecture;
    • Photographic and cinematographic works;
    • Illustrations, maps, plans, sketches, and three-dimensional works relative to geography, topography, and architecture;
    • Audio-visual works and sound recordings;
    • Broadcasts and computer programs;
    • Derivative works and compilations that feature original selection, coordination, or arrangement.

  2. Non-Protected Works
    Certain works are not eligible for copyright, including:

    • Ideas, procedures, systems, methods, concepts, principles, discoveries, or mere data as such;
    • News of the day and other miscellaneous facts;
    • Official texts of legislative, administrative, or legal nature, as well as their official translations.

III. Rights Granted to Copyright Owners

  1. Economic Rights Economic rights enable the copyright owner to control and monetize their work. These rights include:

    • Reproduction – The right to make copies of the work.
    • Derivative Works – The right to create adaptations, modifications, or other derivative works.
    • Distribution – The right to distribute copies to the public.
    • Public Performance – The right to perform the work in public.
    • Public Display – The right to display the work publicly.
    • Digital Transmission – The right to communicate the work via electronic means.

  2. Moral Rights Moral rights are personal to the author and include:

    • Attribution – The right to be recognized as the author.
    • Integrity – The right to object to any derogatory modifications.
    • Alteration Prevention – The right to prevent others from altering or distorting the work.

  3. Duration of Protection

    • For Original Works: Lifetime of the author plus 50 years after their death.
    • For Joint Works: 50 years from the death of the last surviving author.
    • For Audiovisual Works: 50 years from the date of publication.
    • For Anonymous or Pseudonymous Works: 50 years from the date of publication.
    • For Photographic Works and Applied Art: 50 years from publication.

  4. Transfer of Copyright
    Copyright is transferrable through assignment, licensing, or inheritance. Transfers must be documented in writing and require the author's consent.

IV. Exceptions and Limitations (Fair Use Doctrine)

Under Section 185 of the IP Code, specific uses of copyrighted work are permitted without authorization. These exceptions include:

  • Educational Use – Reproduction for teaching purposes.
  • News Reporting – Use in news reporting, commentary, or criticism.
  • Library and Archive Use – Reproduction by libraries or archives for preservation.
  • Parody and Satire – Limited use for transformative purposes.
  • Research and Private Study – Copying for personal, non-commercial research.

V. Copyright Infringement

  1. Definition and Acts of Infringement
    Infringement occurs when someone uses copyrighted work without permission or violates the exclusive rights of the owner. Common infringements include:

    • Unauthorized reproduction, distribution, or display of copyrighted works.
    • Creating unauthorized derivative works.
    • Digital infringement, such as illegal downloads and streaming.

  2. Penalties and Remedies
    Violators are subject to both civil and criminal penalties:

    • Civil Penalties – Damages, injunctions, and payment of profits earned from infringement.
    • Criminal Penalties – Fines ranging from PHP 50,000 to PHP 500,000 and imprisonment from one to nine years, depending on the nature and extent of the infringement.

  3. Additional Remedies under the IP Code

    • Injunctions – Court orders to stop infringing activities.
    • Destruction of Infringing Goods – Destruction or disposal of infringing copies.
    • Payment of Damages – Compensatory damages or statutory damages, whichever is greater.

VI. Copyright Collective Management

The Philippines allows collective management organizations (CMOs) to manage the rights of multiple copyright holders. CMOs, like the Filipino Society of Composers, Authors, and Publishers (FILSCAP), facilitate licensing, collection of royalties, and enforcement of rights on behalf of authors and creators.

VII. Tax Implications of Copyright Income

  1. Income Tax on Royalties
    Authors and copyright holders in the Philippines must report royalties as part of their taxable income. Under the National Internal Revenue Code (NIRC):

    • Resident Citizens – Taxed on royalties at a rate of 10%.
    • Non-Resident Aliens – Subject to a 25% final withholding tax on royalties from Philippine sources.

  2. VAT on Licensing and Transfer of Copyrights
    Licensing and transfer of copyright are VATable transactions, subject to the 12% VAT rate if the licensor is a VAT-registered entity. Exemptions may apply for educational materials and government-recognized organizations.

  3. Withholding Tax on Foreign Royalties
    Foreign entities earning royalties from Philippine sources are subject to withholding tax. Tax treaties may reduce this rate, but applicable procedures for claiming treaty benefits must be followed.

VIII. Copyright and E-Commerce

  1. Online Infringement and Liability
    Digital copyright violations have surged with the advent of e-commerce. The Philippine Cybercrime Prevention Act of 2012 (RA 10175) and the Electronic Commerce Act of 2000 (RA 8792) provide specific mechanisms for dealing with digital copyright infringement.

  2. Notice and Takedown Procedures
    Platforms must establish notice and takedown systems, allowing copyright holders to notify service providers of infringing content. Providers must promptly remove infringing material to avoid liability.

  3. Digital Rights Management (DRM)
    The law recognizes DRM tools as enforceable mechanisms. Circumvention of DRM is considered an infringement, and violators are subject to the same penalties applicable to other forms of copyright violations.

IX. Practical Tips for Copyright Holders

  1. Registration
    Although copyright protection is automatic upon creation, authors are encouraged to register their works with the National Library or the Intellectual Property Office of the Philippines (IPOPHL). Registration provides additional evidentiary value in infringement cases.

  2. Regular Monitoring
    Copyright owners should monitor the use of their work, especially online. Tools like IPOPHL’s Intellectual Property Rights Enforcement Office (IEO) offer support in handling complaints and enforcement requests.

  3. Legal Representation
    Authors and copyright owners are advised to engage IP lawyers or copyright experts to navigate licensing, enforce rights, and handle disputes effectively.

This comprehensive guide should serve as a solid foundation for understanding the scope and enforcement of copyright laws in the Philippines, as well as the rights, protections, and legal implications for creators under Philippine mercantile and taxation laws.

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