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Supreme Court rules in favor of publisher over copyright infringement

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Adrian Ayalin, ABS-CBN News

MANILA — The Supreme Court has ruled in favor of a publisher whose copyright was infringed by a printer through a forged deed of assignment, even if the publisher still supposedly owed the printer some P76 million.In a decision of the 2nd Division promulgated on April 12, 2023, the SC stressed that copyright cannot be transferred through forgery in the case between St. Mary’s Publishing Corporation and M.Y. Intercontinental Trading Corporation.“A forged deed of assignment does not confer rights to the assignee for lack of consent of the copyright owner,” the SC said in the decision penned by Senior Associate Justice Marvic Leonen.The case stemmed from the 2005 contract between St. Mary’s and Intercontinental for the printing of Pagpapaunlad ng Kasanayan sa Pagbasa (Binagong Edisyon) 1 to 6 and Developing Reading Power Enhanced-Combined Edition 1 to 6 in 2005 in China. The two parties entered into a financing agreement for the principal loan amount of P76.748 million in 2008 for printing costs but St. Mary’s started defaulting in its obligations. M.Y. Intercontinental filed a petition for declaratory relief before the Regional Trial Court of Mandaluyong as an unpaid seller. The Mandaluyong RTC held that M.Y. Intercontinental is authorized to sell the books subject of the purchase order without copyright infringement.Then in 2012, St. Mary’s learned that M.Y. Intercontinental sold the textbooks to the City of Cabuyao for P14.11 million. St. Mary’s filed a complaint before the Regional Trial Court of Manila and prayed that M.Y. Intercontinental desist from infringement and pay damages amounting to P90.3 million. But M.Y. countered by raising its compulsory counterclaims for P76 million representing the amount in their contract. The Manila RTC granted the complaint of St. Mary’s and ordered M.Y Intercontinental and its parters Fujian New Techonology Color Making and Printing Company and Allianz marketing and Publishing Corporation to pay St. Mary’s 20 percent of the actual sales amounting to P18.06 million and other damages totaling P3.5 million. The RTC observed that the signatures in the documents submitted by Jerry Vicente Catabijan of St. Mary’s differed from his purported signature in the deed of assignment. M.Y Intercontinental then brought the case to the Court of Appeals which did not give due course to the petition because there was no prima facie showing that the trial court committed errors. The SC noted that the trial judge personally examined the signatures and the findings of the Quezon city Police District Crime Laboratory and the National Bureau of Investigation were also appreciated. “We see no reason to overturn the factual findings of the lower courts on the existence of forgery of Catabijan’s signature in the deed of assignment,” the SC said. The SC also stressed that there was nothing in the contract between St. Mary’s and Intercontinental which allowed the printers to sell the printed books due to default. The SC however noted that the CA gravely erred in sustaining the trial court’s refusal to grant the compulsory counterclaim of M.Y. Intercontinental. The SC ordered that the case be remanded to the RTC Manila to determine the propriety of the compulsory counterclaims of M.Y. Intercontinental, citing the Rules of Procedure for Intellectual Property Rights Cases.“Thus, petitioners are correct that there is no basis for the trial court to have ignored their claims against respondents, which are admittedly unpaid,” the SC said.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/12/11/23/supreme-court-sets-2024-bar-exam-on-sept-8-11-and-15-2024">Supreme Court sets 2024 Bar exam on Sept. 8, 11 and 15, 2024</a></li>	<li><a href="https://news.abs-cbn.com/news/12/06/23/sc-extended-10-year-tax-assessment-applies-to-those-with-intentional-errors">SC: Extended 10-year tax assessment applies to those with intentional errors</a></li>	<li><a href="https://news.abs-cbn.com/news/12/05/23/walden-bello-asks-sc-to-decriminalize-libel">Facing cyberlibel cases, ex-VP bet Bello asks Supreme Court to decriminalize libel</a></li></ul>

The Supreme Court has ruled in favor of a publisher whose copyright was infringed by a printer through a forged deed of assignment. 

Supreme Court rules in favor of publisher over copyright infringement

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Supreme Court rules in favor of publisher over copyright infringement

Adrian Ayalin,

ABS-CBN News

Published December 12, 2023 02:40 PM PHT

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