ABS-CBN-petitioner

Vs
Phil. Multi-Media System Inc., et al.-respondent
YNARES0-SANTIAGO, J.:
FACTS: - This is a petition for review on certiorari that assails the decisions:
- December 20,2004 decision of the Director-General of the Intellectual Property Office in favor of PMMS
-July 12, 2006 decision of the Court of Appeals that affirms the decision of Director-General
-December 11, 2006 denying the motion for recon of ABS-CBN
1. Petitioner ABS-CBN is a broadcasting television licensed under laws of RP, It broadcast channel 2&23 nationwide.
2. Respondent-PMSI is the operator of Dream Broadcasting System that delivers DTH via satellite nationwide.
3. Individual respondents are the board of directors of PMSI
4. PMSI was granted a legislative franchise under RA 8630 on May 7,1998
5. Provisional Authority by the National Telecommunications Commission on Feb. 1,2000
6. When it stated its operation it offered as part of its line up diff. stations including the petitioner.
7. Apr. 25,2001 petitioner demanded PMSI to cease and desist from rebroadcasting Chan. 2&23.
8. PMSI replied on Apr. 25, 2001 that is was in accordance with the authority and obligation given by NTC
9. Negotiation ensue but did not result to settlement of both parties
10. On May 13,2002 ABS-CBN filed w/ Intellectual Property Office a complaint against the respondent for Violation
of Laws Involving Property Rights, with Prayer for the issuance of a Temporary Restraining Order / Writ for Preliminary
Injunction
11. Bureau of Legal Affairs of IPO granted ABS-CBNs application of temporary restraining order and
12. PMSI suspended its transmission of ABS and also filed a petition for certiorari with CA
13. PMSI filed with BLA a manifestation reiterating that it is subj. to a must-carry rule given by the NTC
14. Another manifestation was files by PMSI with BLA that NTC enjoin it to carry out the Memo
15. On Dec 22,2003 BLA order a permanent cease and desist order from rebroadcasting channel 2&23 of PMSI
16. Feb 6, 2004 PMSI filed an appeal w/ Diretor-General IPO and it was granted on Dec 20,2004
17. Thus, ABS-CBN filed a petition for review and issuance of TRO and filed a petition for contempt to PMSI for
continuing to rebroadcasting
18. The denied the motion of ABS and sustained the findings of Dir.-Gen of IPO

ISSUE: Whether or not, PMSIs unauthorized rebroadcasting of Channel 2&23 infringed on its
broadcasting rights and copy rights.
Whether or not the case at bar is valid for judicial review.
RULING:
1. The court finds it no merit in petitioners contention that PMSI violated its broadcasters right under the IP
Code. The MUST-CARRY Rule under NTC Circular that was given to respondent falls under the foregoing
category of limitations on copyright. This MUST-CARRY RULE is in consonance with the principles and
objectives that The Filipino people must be given wider access to more sources of news, infos, education,
sports event and entertainment programs other than those provided for by mass media and afforded
television programs to attain a well informed, well-versed and culturally refined citizenry and enhance their
socio-economic growth. The must-carry rule favors both broadcasting org. and public. It prevents cable
television companies from excluding broadcasting org. especially in those places not reached by signal.
2. With regards to the issue of the constitutionality of the MUST-CARRY RULE, the Court finds that its resolution
is not necessary in the disposition of the instant case. The instant case was instituted for violation of the IP
Code and infringement of ABS-CBNs broadcasting rights and copyright, which can be resolved without going
into the constitutionality of the Memorandum Circular No. 04-08-88. The only relevance of the circular in this
case is whether or not compliance therewith should be considered manifestation of lack of intent to commit
infringement.