abs-cbn v phil multi-media systems, inc. (case digest)‬ IPL

ABS-CBN V PMSI Facts:

 ABS-CBN is engaged engag ed in television and radio broadcasting through wireless and satellite means while Philippine Multi-Media Systems Inc. !PMSI" #or  brevity$% the operator o# &ream Broadcasting System provides direct-tohom home &'( &'($$ tele elevisi vision on via via sate satell llit ite e to its its subsc ubscri ribe bers rs all all over over the the Philippines. PMSI was granted legislative #ranchise under )A *+, to install% operate and maintain a nationwide &'( satellite service and is obligated under by N'C Memorandum Circular No. -*-**% Section +./ o# which re0uires all cable television system operators operating in a community within 1rade !A" or !B" contours to carry the television signals o# the authori2ed television broadcast stations !must-carry rule"$.  ABS-CBN #iled a complaint with Intellectual Property 3##ice IP3$ #or  viol violat atio ion n o# law laws inv involvi olving ng prop proper erty ty righ rights ts.. It alle allege ged d that hat PMS PMSI4s I4s unau unauth thor ori2 i2ed ed rebr rebroa oadc dcas asti ting ng o# Chan Channe nels ls / and and /, in#r in#rin inge ged d on its its bro broadca adcast stin ing g righ rights ts and and copy copyri righ ghtt and and tha that the the N'C N'C circ ircular ular only only covers cable television system operators and not &'( satellite television operators. operators. Moreover% Moreover% N'C Circular -*-** violates Sec. 5 o# Art. III o# the Constitution because it allows the ta6ing o# property #or public use without payment o# 7ust compensation. PMSI argued that its rebroadcasting o# Channels / and /, is sanctioned by Memorandum Circular No. -*-**8 that the must-carry rule under the Memorandum Circular is a valid e9ercise o# police power. IP3 and Court o# Appeals ruled in #avor o# PMSI.

Issues:

:$ w;n PMSI in#ringed on ABS-CBN4s broadcasting rights and copyright /$ w;n PMSI is covered by the N'C Circular !must-carry rule"$ ,$ ,$
Held:

:. N3. PMSI does not in#ringe on ABS-CBN4s broadcasting rights under  the IP Code as PMSI is not engaged in rebroadcasting o# Channels / and /,. )ebroadcasting% which is prohibited by the IP Code% is !the simultaneous broadcasting by one broadcasting organi2ation o# the broadcast o# another broadcasting organi2ation." ABS-CBN creates and transmits its own signals8 PMSI merely carries such signals which the viewers receive in its unaltered #orm. PMSI does not produce% select% or determine the programs to be shown in Channels / and /,. =i6ewise% it does not pass itsel# o## as the origin or author o#  such programs. Inso#ar as Channels / and /, are concerned% PMSI merely retransmits the same in accordance with N'C Memorandum Circular -*-**. /. >?S. !&'( satellite tv operators" is covered under the N'C Circular  which !re0uires all cable television system operators@ to carry the television signals o# the authori2ed television broadcast stations". 'he &irector-1eneral o# the IP3 and the Court o# Appeals correctly #ound that PMSI4s services are similar to a cable television system because the services it renders #all under cable !retransmission". 'hus% PMSI% being a &'( Satellite ' operator is covered by the N'C Circular. ,. 'he carriage o# ABS-CBN4s signals by virtue o# the must-carry rule in Memorandum Circular No. -*-** is under the direction and control o# the government though the N'C which is vested with e9clusive  7urisdiction to supervise% regulate and control telecommunications and broadcast services;#acilities in the Philippines. 'he imposition o# the must-carry rule is within the N'C4s power to promulgate rules and regulations% as public sa#ety and interest may re0uire% to encourage a larger and more e##ective use o# communications% radio and television broadcasting #acilities% and to maintain e##ective competition among private entities.