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Bayanihan Music Phils., Inc. vs.

BMG Records
G.R. No. 166337, March 7, 2005

Facts
Jose Mari Chan (Chan) entered into a contract with Bayanihan Music Philippines, Inc. (Bayanihan),
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". Three years after 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.Apparently, without the knowledge and
consent of petitioner Bayanihan, Chan authorized BMG Records (BMG) to record and distribute the
aforementioned musical compositions in a then recently released album of singer Lea Salonga.
Bayanihan informed 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, Bayanihan filed a 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, enjoining respondent BMG from
further recording and distributing the subject musical compositions in whatever form of musical products,
and Chan from further granting any authority to record and distribute the same musical compositions.

BMG Arguments:
(1) the acts of recording and publication sought to be enjoined had already been consummated,
thereby rendering moot Bayanihan's prayer for TRO and/or preliminary injunction;
(2) there is no clear showing that petitioner Bayanihan would be greatly damaged by the refusal of the
prayed for TRO and/or preliminary injunction.

Chan Arguments:
(1) it was never his intention to divest himself of all his rights and interest over the musical compositions
in question;
(2) the contracts he entered into with Bayanihan are mere music publication agreements giving
Bayanihan, as assignee, the power to administer his copyright over his two songs and to act as the
exclusive publisher thereof;
(3) he was not cognizant of the application made by and the subsequent grant of copyrights to
Bayanihan;
(4) Bayanihan was remissed in its obligations under the contracts because it failed to effectively
advertise his musical compositions for almost twenty (20) years, hence, he caused the rescission of said
contracts in 1997.

Issues
Whether or not Bayanihan as assignee of the copyrights over the musical compositions in question has a
clear legal right to a writ of preliminary injunction?

Held
No, Bayanihan has no right for right for injunction over the subject musical compositions.

The issuance of an injunctive writ if the following requisites provided for by law are:
(1) there must be a right in esse or the existence of a right to be protected;
(2) the act against which the injunction is to be directed is a violation of such right, the trial court
threaded the correct path in denying petitioner's prayer therefor.
Chan, 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.

The copyrights obtained by Bayanihan 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, because respondent Chan had put in issue the existence thereof.