CHAPTER 1: CONSTITUTIONAL ISSUES
in commercial mass media when public interest so requires.
Constitution
- A supreme law of the land where all other laws must
conform
- It is a municipal law that is only bound to its land
- covers the following topics
Power of the State
Right of Individuals
Defines what the state is:
Territory
People bound by
Sovereignty
Government
- it finds a balance between Power of the State and Right of
Individuals
Inherent Power of the State
1. Police Power power to regulate with no
compensation for general welfare, health or safety
2. Eminent Domain power to take away private
property for public use upon payment of just
compensation
3. Taxation it is the life blood of the government
* Just Compensation can be based on:
Assessed value
Zonal Value
Fair Market Value (FMV)
ARTICLE XVI: General Provisions
The ownership and management of mass media shall be
limited to citizens of the Philippines, or to corporations,
cooperatives, or associations, wholly-owned and managed
by such citizens. (page 1)
MAIN IDEA: The Legal Environment of Mass Media
Mass Media and Advertising is Different
a. Mass Media is limited to TVC, PRINT, and
RADIO
Plays a critical role in nation-building
Ownership and management is 100%
Filipino
It is a gate keeper of what is
communicated to the masses. Not all
information should pass through
those gates.
The allegiance and loyalty to country is the primary
reason for Filipinization Policies.
Mass media plays a critical role in nation building
since it is a source of news, information, ideas, and
ideals.
Filipinization of ideas projected through mass media is
ensured when left in the hands of Filipino.
SEC 11 The congress shall regulate or prohibit monopolies
No Combination in restrain of trade or unfair competition
therein shall be allowed. (page 2)
No single company has controlling interest in two
traditional forms of tri-media comprising of TVC,
PRINT, and RADIO.
Ex. ABS-CBN owns television and radio
but has no direct interest in print such as
a newspaper company
There is a conscious effort to maintain competition
The sense of balance in the market place
can only be achieved under a regime of
healthy and fair competition.
SEC 11 The advertising industry is impressed with public
interest, and shall be regulated by the law for the protection
of consumers and the promotion of general welfare.
Advertising is a property in the form of speech
that uses mass media to communicate a product /
advocacy / idea for the intent to sell and persuade
a target audience
Advertising is a form of speech this it
is PROTECTED (Commercial Speech)
Advertising has the intent to sell
rather than to express thus it is
regulated. (Police Power)
Advertising may be regulated through POLICE POWER
or EMINENT DOMAIN.
SEC 11 Only Filipino citizen or corporations or associations
at least seventy per centum (70%) of capital of which is
owned by such citizen shall be allowed to engage in
advertising industry. (page 2)
Advertising is less restrictive in terms of
ownership.
Ownership: 70/30 profit sharing
70% - Filipino
30% - Foreigners
To protect their interest, foreigners are allowed
ownership over companies created to sell their
product (limited ownership)
Created opportunities to transfer technology
from foreign shores to this country where
innovation on advertising are introduced.
SEC 11 The participation of foreign investors in the
governing body of entities in such industry shall be limited to
their proportionate share in capital thereof, and shall all the
executive and managing officers of such entities must be
citizens of the Philippines. (page 2)
With respect to management, foreigners are
prohibited from taking an executive or
managing officer position
a. Mass Media Management = 100% Filipino
b. Advertising Management = 100% Filipino
 Executive and managing positions are placed entirely
in the hands of Filipinos to assure that content and
appeal of the advertisement is strictly Filipino.
Standards have to be measured according to the
national or Filipino psyche.
RULING: The ordinance is deemed invalid due to the
reason that Fajardo's land is useless because of the
ordinance passed. He cannot use his private property
therefor the government is exercising the power of
eminent domain and should be given just compensation.

ARTICLE III Bill of Rights (Sec. 1 and 9) ARTICLE III Freedom of Speech (Sec. 4)
Sec 1 No person shall be deprived of life, liberty, or Sec 4 No law shall be passed abridging the freedom of
property without due process nor shall any person be denied speech, of expression, or of the press, or the right of the
equal protection of the law. (page 6) people to peacefully assemble and petition the government
Talks about POLICE POWER for redress of grievances. (page 10)
The State can exercise police power (to Speech is an encompassing term that includes
regulated, with no just compensation) every possible form of expression (Verbal and
BUT due process must be given Non Verbal)
- Freedom of speech cannot be unfretted.
CASE: Churchill and Trait vs. Rafferty (BIR) Though it is subject to regulations (usually
STORY: Churchill placed a billboard that covers the view of through police power)
nature and compels attention because of its location. - The moment you express through actions,
Churchill's billboard is placed in his private party. The you are responsible.
government characterized it as offensive to the sight
Two Types of Speech
ISSUE: Whether the billboard may be removed without just 1. Protected
compensation to the owners a. Core Speech
Non Commercial
RULING: The billboard was removed without just General Rule: it cannot be
compensation through police power although it is a private interfered with
property the government's main concern is the general Underlying motive is to
welfare of the people and the billboard was a distraction EXPRESS
and obstructive. b. Commercial Speech
General Rule: it can be
Equal Protection regulated
General Rule: Equal to everyone Underlying motive is for
Exemptions: PROFIT
a. More protection over the less fortunate 2. Unprotected
b. Retail Trade is only for Filipinos a. Libel
c. Law only applies to one (1) class - it must be
Ex. Only Filipinos can own land 60% Public
must be Filipino Malicious
Imputation of (can be real
Sec 9 Private property shall not be taken for public use or imaginary)
without just compensation (page 6) i. Crime
Talks about EMINENT DOMAIN ii. Vice
The state has the power to exercise iii. Defect
eminent domain (take away with Any act of
compensation) i. Omission
Right to take away/ expropriate is ii. Condition
only valid if: iii. Status
i. For public use iv. Circumstances
ii. There is just compensation Causes the following
i. Dishonor
CASE: People vs. Fajardo ii. Discredit
STORY: Fajardo old house was destroyed due to a typhoon. iii. Contempt
He owns this parcel of land and on the process of
Blacken the memory of one
requesting a permit he was denied because the building
who is dead
will destroy the view of the public plaza. He still preceded
THE PERSON SHOULD BE
with the building of his house in his parcel of land. The
IDENTIFIABLE
governments wants the house destroyed because of the
Anything online is public (even
ordinance.
private messages)
Only the person who has been
ISSUE: Whether the ordinance is valid.
caused damaged to can sue.
 b. Obscenity
It looks at an average
person and apply
contemporary standards in
order to judge if the object
in question is obscene
Work taken as a while
lacks serious literary
artistic, political, or
scientific value.
National Press Club vs. Comelec
- It is not allowed to give free of charge print space
or air time for candidates. All candidates should
depend on comelec for air time. If candidate is a
contributor, columnist, commentator or
announcer on board he/she should take a leave of
absence during candidacy period.
Telecommunications & Broadcast Attorneys of the
Phils Inc. vs. Comelec
Laws Concerned:
1. Comelec time for radio and TV shall be given
to the government without just compensation
so that they may allocate equally and
impartially among the candidates within the
area of coverage.
2. Comelec space for print
(newspaper/magazines) shall be given to the
government with just compensation. Said
space is allocated free of charge equally and
impartially to the candidates.
*Radio and TV broadcasting companies, which are
given franchises, do not own the airwaves and
frequencies.
They only transmit broadcast and images and
therefore, it is a public party; police power can be
exercised, unlike Print, which is a private property
and power of eminent domain should be
exercised.
Political Advertisement - may take the form of
spots, guestings, in TV shows and radio programs,
love or taped announcements, teasers, and other
forms of advertising messages or announcements
used by commercial advertisers.
"Election period commences 90 days before the
day of election date and 30 days thereafter.
Campaign period is variable but within the 90
days before the election date"
"Candidates are only considered candidates
during the start of campaign period"
CASE: Adiong vs. Comelec
STORY: Adiong challenge the comelec resolution that it is
not allowed to use campaign decals and stickers on mobile
units
ISSUE: Where the prohibition as applying to private motor
vehicles is a valid regulation
RULING: Adiong was granted to the right to distribute
campaign decals and stickers. For her mobile units is a
private property and prohibiting it is a depriving them
with free speech. People who agree to put the stickers in
their mobile units is merely is an expression or a
statement.
CASE: Mutuc vs. Comelec
STORY: Comelec issued a ruling that the use of a taped
jingle on mobile units equipped with sound systems and
loud speakers for campaign purposes is not allowed
ISSUE: Whether the prohibition amen e use of a taped
jingle is valid?
RULING: Mutuc was granted the right to express his views
as a political candidate because it is hard to repeat his
views over and over again in different places that is why it
is only appropriate to record it in a jingle or something.
Prohibitions of Speech
General Rule: State cannot exercise Prior Restraint or
Subsequent Punishment
1. Prior Restraint
Has not yet been expressed
Before publication/ dissemination
Exemptions
a. During war
b. During rebellion
c. Classified Censorship (MTCRB)
This can be reviewed by a higher
body.
2. Subsequent Punishment
Allowed to do/show but there is
immediate punishment after.
Exemptions
a. Dangerous Tendency Rule (a tendency)
If speech is expressed = possible
evil
b. Clear and Present Danger
If speech is expressed = sure evil
Use proximity and degree test
c. Balancing of Interests
Individual freedom vs public interest
CASE: Soriano vs Laguardia
STORY: Soriano made a remark over
Sanoval on TV. Sandoval sent a complaint
to Soriano. MTRCB suspended Dating
Daan for 3 months and Soriano for 20
days.

CHAPTER 2: SOURCES OF OBLIGATION
Elements and Requisites of a Contract
1. Consent must be freely given
2. Object must be clear and determinate
(within the commerce of men)
3. Cause reason for the contract
Five (5) Sources of Obligation
1. Law
2. Contract
3. Quasi Contract
4. Delict / Crime
5. Quasi Delict
NO. 1: Law the law should be adhere to; otherwise
liability for such violation will arise.
Advertising under the Law
RA 7658
- Permits are needed for children to
appear on ads
- Children below 15 shall not be
employed except when essential
- Must have parents permission / legal
guardian
- Agreement of the child
- Agreement of DOLE & DSWD
Animal Welfare Act of 1998
- Unlawful to torture animals / neglect
to provide care, sustenance, or
shelter, or maltreat them
Omnibus Election Code
- Registration with Comelec for ads for
endorsing / opposing candidacy of
any person
Resolution 7858
- Digital Media Advertisement
Section 64 of MORPHE
- For school ads / announcement of
degree program which are offered
under permit status
- Required the inclusion of As per
commission of higher education
permit number
EO51 (Milk Code 1986)
- Nutrition and health claims will not
be permitted for breastmilk
substitute.
NO. 2: Contract meeting of minds; involving a valid
object. It is perfect by an offer duly accepted.
Characteristics:
a. Liberty/Freedom to enter into contract
b. Obligatory law between parties
c. Mutual Binding between parties
d. Consensual there has to be consent for both
parties
NO. 3: Quasi Contract
- If something is unduly received, there is an
obligation to return it.
- Based on the sense of justice and fairness
- Quasi means seeming
NO. 4: Delict / Crime
- Punishable by imprisonment
- Violation of provision of the revised Penal Code
and Special Laws that especially provide
sanctions penal in character
- Action / Omission
- There is intent / motive
NO.5: Quasi Delict
- Fault through negligence
- No pre-existing contract
- Need to pay for damages
Essential Requisites of Quasi-Delict
1. Act or Omission constituting fault or
negligence
2. Damage Caused by said act or omission
3. Casual Relation between the damage and
the act or omission
4. Private Person
5. Public Official
EXAMPLE OF QUASI DELICT: Malicious publication (not
constitute a criminal offence for libel, but it shall give rise
to civil action for violation of right to privacy)
Type of Damages
1. Actual or Compensatory
2. Moral lack of sleep, emotional distress,
trauma, etc.
3. Nominal
4. Temperate or Moderate
5. Liquidated agreed upon amount
6. Exemplary or Corrective impose damages
to show to public.
CHAPTER 3: INTELLECTUAL PROPERTY RIGHT
Intellectual Property
- A body of laws that deal with the
creations of the mind
- Not a natural law
Two (2) Types of Intellectual Property
1. Copyright
2. Trade Mark
NO. 1 COPYRIGHT: Principles of Copyright
1. Literary & Artistic Work
- Literary written work
- Artistic appeals to the senses
2. Original Works
1. The use of ones own independent initiative and
effort
- Moment of Creation
 1. Protected at the moment of creation b. News of the Day
2. No need to register / immediately actionable c. Press Information
- Irrespective to Form/Content/Quality/Purpose it d. Official text or Legislative work
is protected e. Libel
- Should be tangible f. Obscenity
1. Should be outside the head
- Expression is protected COPYRIGHT OWNERSHIP
Ideas are not protected a. Belongs to owner natural person
b. Joint Authorship co-ownership unless
LIMITATIONS OF COPYRIGHT distinguishable
When copyright term ends c. Commissioned only ownership is transferred
Term of Protection: 50 years after authors d. Employee owns copyright if work is done through
death own efforts & is not part of his/her work
Non copyrightable works e. Employer owns copyright; process matters
No violation of copyright: f. Audio Visual owned by producer author of
- Private performance, free / religious / scenario, composer, film director, author of
charitable adaptation
- Quotations if done properly (quoting) g. Letter receiver is the owner; sender owns the
- Reporting, reproduce for broadcasting copyright
- Reporting Current Events *Copyright is a bundle of rights (Term of Protection is 50
- Educational Purpose years after authors death)
- Ephemeral Recording (not intentionally)
- Use of government / national library / COPYRIGHT BUNDLE OF RIGHTS:
educational / scientific institution
- Public display of original work if sold / given A) ECONOMIC RIGHTS (Can be transferred
away / transferred separately)
- Legal purpose - Reproduce (whole or substantial portion)
* As long as owners right to earn is not undermined. GENERAL RULE: You cannot just
copy anything. Only the creator has
LIMITATIONS ON COPYRIGHT the exclusive right to reproduce the
a. Fair Use Doctrine work.
- Acts of Fair Use ex. recitation / performance EXCEPTION: Consent
done in private - Transform
- Types of Acts of Fair Use EXAMPLE: You cannot just make a
a. Criticism book into a movie. You need
b. News consent. *Derivative works need
c. Teaching consent.
d. Research - First Transfer sell ownership, not
- Guidelines of Fair Use: copyright
a. Purpose & Character of Use First Decision to Sell.
b. Nature of work (it is possible that it Initial Right to Sell: if buyer decides
isnt copyrightable) to sell or rip it, then creator has no
c. Amount and sustainability of portion more right over it.
used (quantity and quality) - Rental commercial use needs consent.
d. Effects of use upon the owner of the Private use does not. (Pertains to audio
copyright visuals. Not Books.)
DERIVATIVE WORKS - Public Display
a. Arise from original work - Public Performance
b. Two (2) Types of Work: Example of common public
a. Original performance practices that all need
b. Derivative consent:
c. Two Protections Music playing in restaurants
Protections are separate Television turned on really
loud in restaurant
NON COPYRIGHTABLE / UNPROTECTED WORKS Singing a song in The Voice
General Rule: You may copy, unprotected work - Other Communication to the Public
* General Rule is you need CONSENT for each and every
Types of Non Copyrightable / Unprotected Works: action under economic rights
a. Ideas / procedure / system / method or *All rights under economic rights are separate from one
operations / concept / principle / another meaning it is possible to have the consent to
discovery / mere data reproduce but not consent to display in public.

B) MORAL RIGHTS (Personal Right. Cannot be
transferred)
- Attribution still has the right to have the
work attributed to him even if ownership
of copyright has already been transferred
EXAMPLE: Reason why companies dont
need to attribute the works done by its
employees is because the copyright is
owned by the employer Especially when
it works is done within the job scope of
the employee.
- Alteration author may change the work
prior to publication
- Respect and Integrity cannot alter work
in a sense that it will affect reputation of
creator
- Reject False Attribution author may
reject false attributions
* Only creators can exercise moral right
*Creators can wave/refuse to use moral right but it needs
to be in writing.
C) RIGHT OF RESALE (Droit de Scute)
- Sale / lease of original work
- Get 5% subsequent sale
- Even their heirs have the right to resale.
D) RIGHT ON WORKS OF ARCHITECTURE
- Right to erect building (first time only)
i. Substantial part or whole
original form or any form
recognizably derived from the
original
ii. Does not include reconstruction
or rehabilitation in the same style
as the original
- Right to Blueprint is different - creation of
the building is separate from the
blueprint
NO. 2 TRADEMARK
Requisites of a trademark:
1. Should be visible - a sign / symbol
2. Capable of distinguishing from other (distinctive) -
stamp containers (ex. Shape of coke bottle)
*Scents arent a mark
Functions of a trademark:
1. Should be able to identify a product or service
(Purpose)
2. It is a source identifier
3. Marketing Tool (the start of developing brand)
4. Valuable Asset
TRADEMARK VS. BRAND
1. Trademark is just a visible sign that
distinguishes
2. Brand adds qualities and traits that becomes
own-able to the trademark
USE OF MARKS
1. Financing you can use the mark to get a loan
2. Licensing and Franchising allow others to use
the mark
TYPE OF MARKS
1. Strong Mark (Registerable)
a. Inherently Distinctive doesnt relate to
the product (ex. Xerox & Kodak)
b. Arbitrary/Fanciful has meaning but
does not relate to the product (ex. Apple
& Window)
c. Suggestive Marks suggests something
about the product and service but does
not tell what that product or service is
(ex. Close Up)
d.
2. Weak Mark (Non Registerable)
a. Immoral, Deceptive, and Scandalous
Marks causes damage to others (ex.
Vatican Night Club)
b. Any Symbol of a Country
c. Living Individual (Portrait, Siganture, or
Name)
d. Identical Mark w/ same goods
Company A: Sarmi w/ nails
polish
Company B: Sarmi nal Polish
e. Identical Mark w/ related goods if
different with goods then it is allowed
Company A: Sarmi with nail
polish
Company B: Sarmi nail cutter
f. Confusingly Similar
g. Internationally well known marks
Requisites for well known
mark: Knowledge of the relevant
sector is not equivalent to the
knowledge of public at large
h. Misleading
i. Generic Mark
Refers to the class
Example: Sams Cofee Shop (the
coffee shop cannot be registered)
Example: BAYO a dialect for
clothes
j. Customary or Everyday Language
Example: Tasty
k. Descriptive to Qualities of the Product
(Explicit)
Example: a car brand called FAST.
l. Shapes cannot be the same as the product
 Example: product is ribbon then
logo is ribbon cannot be
trademarked.
m. Color alone cannot be trademarked
Example: Red Mug = Nestcafe

DISTINCTIVE SECONDARY MEANING

Descriptive becoming distinctive
Example: Shoemart is a place to buy shoes is
now known as SM.
How the owner related the product
There is always an owner

TYPES OF TRADE MARK

Strong Trademark Weak Trademark
a. Inherently Distinctive a. Generic
b. Arbitrary and Fanciful b. Descriptive
c. Suggestive c. Common

STRONG MARK
A) Inherently Distinctive doesnt relate to the
product but has a strong recall (ex. Xerox and
Kodak)
B) Arbitrary / Fanciful has meaning but doesnt
relate to the class of the product (ex. Apple and
Windows)
C) Suggestive suggests something about the
product or service but does not tell what that
product or service is (ex. Close Up)

WEAK MARKS
A) Generic the name refers to the class (ex. Sams
Coffee Shop where Coffee Shop cannot be
registered on its own)
B) Descriptive refers to the qualities of the product
(ex. Car shop called FAST)
C) Common language is used customary and part of
everyday language (ex. Bread called Tasty)

TRADEMARK
Needs to be registered (it is not protected in the
moment of creation)
First to file (good faith)

To Register a Trademark
1 Conduct a trademark search search if your
proposed trademark has any similar trademark
2 File a registration (Sec. 124) color claim
3 File in IPOPHL pass through formality exam
4 Substantive Exam IPOPHL tries to question the
mark
5 Publication
- done online
- shown to entire world
- Entire world is given 30 days to object

6 Registration
7 May Cancel w/in 5 years