9 - Sony Music v. Espanol
9 - Sony Music v. Espanol
DECISION
GARCIA , J : p
Assailed and sought to be nulli ed in this petition for certiorari with application
for injunctive relief are the orders issued by the respondent judge on June 25, 2002 1
and January 6, 2003 , 2 the rst quashing Search Warrant No. 219-00 , and the second,
denying reconsideration of the first.
From the petition, the comment thereon of private respondents, their respective
annexes, and other pleadings led by the parties, the Court gathers the following
relevant facts:
In a criminal complaint filed with the Department of Justice (DOJ), the Videogram
Regulatory Board (VRB) 3 charged herein private respondents James Uy, David Chung,
Elena Lim and another o cer of respondent Solid Laguna Corporation (SLC) with
violation of Presidential Decree (PD) No. 1987. 4 As alleged in the complaint, docketed
a s I.S. No. 2000-1576 , the four (4) were engaged in the replication, reproduction and
distribution of videograms without license and authority from VRB. On account of this
and petitioners' own complaints for copyright infringement, the National Bureau of
Investigation (NBI), through Agent Ferdinand M. Lavin, applied on September 18, 2000,
with the Regional Trial Court at Dasmariñas, Cavite, Branch 80, presided by the
respondent judge, for the issuance of search warrants against private respondents
David Chung, James Uy, John and Jane Does, doing business under the name and style
"Media Group" inside the factory and production facility of SLC at Solid corner Camado
Sts., Laguna International Industrial Park, Biñan, Laguna. 5
During the proceedings on the application, Agent Lavin presented, as witnesses,
Rodolfo Pedralvez, a deputized agent of VRB, and Rene C. Baltazar, an investigator
retained by the law firm R.V. Domingo & Associates, petitioners' attorney-in-fact. In their
sworn statements, the three stated that petitioners sought their assistance,
complaining about the manufacture, sale and distribution of various titles of compact
discs (CDs) in violation of petitioners' right as copyright owners; that acting on the
complaint, Agent Lavin and the witnesses conducted an investigation, in the course of
which unnamed persons informed them that allegedly infringing or pirated discs were
being manufactured somewhere in an industrial park in Laguna; that in the process of
their operation, they were able to enter, accompanied by another unnamed source, the
premises of SLC and to see various replicating equipment and stacks of CDs; and that
CD Technologies Asia, Inc. 2020 cdasiaonline.com
they were told by their anonymous source that the discs were being manufactured in
the same premises. They also testi ed that private respondents were (1) engaged in
the reproduction or replication of audio and video compacts discs without the requisite
authorization from VRB, in violation of Section 6 of PD No. 1987, presenting a VRB
certi cation to such effect; and (2) per petitioners' certi cation and a listing of Sony
music titles, infringing on petitioners' copyrights in violation of Section 208 of Republic
Act (RA) No. 8293, otherwise known as Intellectual Property Code. 6
On the basis of the foregoing sworn statements, the respondent judge issued
Search Warrant No. 219-00 7 for violation of Section 208 of R.A. No. 8293 and Search
Warrant No. 220-00 8 for violation of Section 6 of PD No. 1987. aAcHCT
Eventually, the DOJ denied VRB's motion for reconsideration, prompting private
respondents to move anew for the quashal of the search warrants. In its supplement to
motion, private respondents attached copies of SLC's license as videogram duplicator
and replicator.
In an order dated October 30, 2001, 1 3 the respondent judge, citing the January
15, 2001 DOJ resolution in I.S. No. 2000-1576, granted private respondents' motion to
quash, as supplemented, dispositively stating:
"Nonetheless, such being the case, the aforesaid Search Warrants are
QUASHED" caHCSD
Petitioners forthwith sought clari cation on whether or not the quashal order
referred to both search warrants or to Search Warrant No. 220-00 alone, since it was
the latter that was based on the charge of violation of PD No. 1987. 1 4 The respondent
judge, in a modi catory order dated January 29, 2002, 1 5 clari ed that her previous
order quashed only Search Warrant No. 220-00.
Meanwhile, or on November 22, 2001, petitioners led with the DOJ an a davit-
complaint, docketed thereat as I.S. No. 2001-1158 , charging individual private
respondents with copyright infringement in violation of Sections 172 and 208 in
relation to other provisions of RA No. 8293. 1 6 Attached to the a davit-complaint were
certain documents and records seized from SLC's premises, such as production and
CD Technologies Asia, Inc. 2020 cdasiaonline.com
delivery records.
Following their receipt of DOJ-issued subpoenas to le counter-a davits, private
respondents moved, in the search warrant case, that they be allowed to examine the
seized items to enable them to intelligently prepare their defense. 1 7 On January 30,
2002, respondent judge issued an order allowing the desired examination, provided it is
made under the supervision of the court's sheriff and in the "presence of the applicant
of Search Warrant No. 219-00". 1 8
On February 8, 2002, the parties, represented by their counsels, repaired to the
Carepak warehouse. An NBI agent representing Agent Lavin appeared. The examination,
however, did not push through on account of petitioners' counsel insistence on Agent
Lavin's physical presence. 1 9 Private respondents were able to make an examination on
the following scheduled setting, February 15, 2002, albeit it was limited, as the minutes
of the inspection discloses, to inspecting only one (1) box containing 35 assorted CDs,
testing stampers, diskettes, a calendar, organizers and some folders and documents.
The minutes also contained an entry stating — "Other items/machines were not
examined because they cannot be identi ed as they are not properly segregated from
other items/machines in the warehouse. The parties agreed to schedule another
examination on (to be agreed by the parties) after the items/machines subject of the
examination shall have been segregated from the other items/machines by Carepak
Moving and Storage , Inc." 2 0
During the preliminary investigation conducted on February 26, 2002 in I.S. No.
2001-1158, however, petitioners' counsel objected to any further examination, claiming
that such exercise was a mere subterfuge to delay proceedings. 2 1
On April 11, 2002, individual private respondents, through counsel, led a " Motion
To Quash Search Warrant (And To Release Seized Properties) " grounded on lack of
probable cause to justify issuance of search warrant, it being inter alia alleged that the
applicant and his witnesses lacked the requisite personal knowledge to justify the valid
issuance of a search warrant; that the warrant did not su ciently describe the items to
be seized; and that the warrant was improperly enforced. 2 2 To this motion to quash,
petitioners interposed an opposition dated May 7, 2002 predicated on four (4)
grounds. 2 3 On June 26, 2002, respondent SLC led a Manifestation joining its co-
respondents in, and adopting, their motion to quash. 2 4
O n June 25, 2002 , the respondent judge issued the herein rst assailed order
quashing Search Warrant No. 219-00 principally on the ground that the integrity of the
seized items as evidence had been compromised, commingled as they were with other
articles. Wrote the respondent judge:
Based on the report submitted, it appears that on February 15, 2002, an
examination was actually conducted. Unfortunately, the alleged seized items were
commingled with and not segregated from thousands of other items stored in the
warehouse. Only one box . . . were (sic) examined in the presence of both parties
with the sheriff, such that another date was set. . . . On February 22, 2002, during
the hearing before the Department of Justice (DOJ), [petitioners' counsel] Atty.
Arevalo manifested their objection to the further examination on the alleged
ground that all of the items subject of the DOJ complaint have been examined.
Analyzing the report and the incidents relative thereto, it shows that the
items subject of the questioned Search Warrant were commingled with other
items in the warehouse of Carepak resulting in the failure to identify the machines
CD Technologies Asia, Inc. 2020 cdasiaonline.com
and other items subject of this Search Warrant, while the other items enumerated
in the said Inventory of Seized Items and Certi cation of Legality, Orderliness and
Regularity in the Execution and enforcement of Search Warrants were not
examined, hence, the charge imputed against the respondents could not be
established as the evidence to show such violation fails to determine the
culpability of said respondents, thus, violating their constitutional rights. 2 5
Excepting, petitioners moved for reconsideration, arguing on the main that the
quashal order was erroneously based on a ground outside the purview of a motion to
quash. 2 6 To this motion, private respondents interposed an opposition, against which
petitioners countered with a reply.
On January 6, 2003 , respondent judge issued the second assailed order denying
petitioners' motion for reconsideration on the strength of the following premises:
Careful scrutiny of the records of the case reveals that the application of
the above-entitled case stemmed from the application for Search Warrant alleging
that the respondent was not licensed to duplicate or replicate CDs and VCDs. The
Court was misled when the applicants declared that Solid Laguna Corporation
(SLC) is not licensed to engage in replicating/duplicating CDs and VCDs, when in
truth and in fact, SLC was still a holder of a valid and existing VRB license.
Considering the fact that respondent was duly licensed which facts (sic) was not
laid bare to this Court when the application for writ was led by the private
complainant through the National Bureau of Investigation, this Court hereby
recalls and quashes the above writ.
Petitioners also deplore the issuance of the second assailed order which they
tag as predicated on a ground immaterial to Search Warrant No. 219-00.
Private respondents led their Comment on May 13, 2003, essentially reiterating
CD Technologies Asia, Inc. 2020 cdasiaonline.com
their arguments in the "Motion To Quash Search Warrant (And To Release Seized
Properties)". Apart therefrom, they aver that petitioners violated the rule on hierarchy of
courts by ling the petition directly with this Court. As to be expected, petitioners' reply
to comment traversed private respondents' position.
Owing to their inability to locate respondent David Chung, petitioners moved and
the Court subsequently approved the dropping, without prejudice, of said respondent
from the case. 2 9
On February 20, 2004, private respondents led their Rejoinder, therein inviting
attention to petitioner IFPI's failure to execute the certi cation on non-forum shopping
as required by Rule 7, Section 5 of the Rules of Court and questioning the validity of the
Special Powers of Attorney of petitioners' attorney-in-fact to file this case.
In Resolution of March 31, 2004, the Court gave due course to the petition and
directed the submission of memoranda which the parties, after each securing an
extension, did submit.
The underlying issue before Us revolves on the propriety of the quashal of Search
Warrant No. 219-00 which, in turn, resolves itself into question of the propriety of the
warrant's issuance in the first place.
It has repeatedly been said that one's house, however, humble is his castle where
his person, papers and effects shall be secured and whence he shall enjoy undisturbed
privacy except, to borrow from Villanueva vs. Querubin, 3 0 "in case of overriding social
need and then only under the stringent procedural safeguards." The protection against
illegal searches and seizure has found its way into our 1935 and 1973 Constitutions
and is now embodied in Article III, Section 2 of the 1987 Constitution, thus —
The right of the people to be secure in their persons, houses, papers and
effects against unreasonable searches and seizures of whatever nature and for
any purpose shall be inviolable, and no search warrant or warrant of arrest shall
issue except upon probable cause to be determined personally by the judge after
examination under oath or a rmation of the complainant and the witnesses he
may produce, and particularly describing the place to be searched and the
persons or things to be seized,
In our view, the issuance of the search warrant in question did not meet the
requirements of probable cause. The respondent judge did not accordingly err in
quashing the same, let alone gravely abuse her discretion.
Petitioners argue that the instant petition is on all fours with Columbia, 3 7
wherein the en banc Court upheld the validity of search warrants based on the
testimonies of the applicant and his witnesses who conducted an investigation on the
unlawful reproduction and distribution of video tapes of copyrighted films.
We are not persuaded.
In Columbia, the issuing court probed the applicant's and his witnesses' personal
knowledge of the fact of infringement. It was, however, determined by this Court that
during the application hearing, therein petitioner's attorney-in-fact, a witness of the
applicant, "stated in his a davit and further expounded in his deposition that he
personally knew of the fact that private respondents had never been authorized by his
clients to reproduce, lease and possess for the purposes of selling any of the
copyrighted films." 3 8 Signi cantly, the Court, in upholding the validity of the writ issued
upon complaint of Columbia Pictures, Inc., et al., stated that "there is no allegation of
misrepresentation, much less nding thereof by the lower court, on the part of
petitioners' witnesses." 3 9
Therein lies the difference with the instant case.
Here, applicant Agent Lavin and his witnesses, Pedralvez and Baltazar, when
queried during the application hearing how they knew that audio and video compact
discs were infringing or pirated, relied for the most part on what alleged unnamed
sources told them and/or on certi cations or lists made by persons who were never
presented as witnesses. In net effect, they testi ed under oath as to the truth of facts
they had no personal knowledge of. The following excerpts of the depositions of
applicant Lavin and his witnesses suggest as much:
A. Deposition of Agent Lavin
28. Question: What happened next?
Answer:
CD Technologies Asia, Inc. 2020 cdasiaonline.com
We then went to the Laguna Industrial Park, your Honor . . . We then veri ed from
an informant that David Chung, James Uy . . . under the name and style
Media Group were the ones replicating the infringing CDs.
xxx xxx xxx
36. Question: How do you know that all of these VCDs and CDs you purchased or
are indeed infringing?
Answer:
I have with me the VRB certi cation that the VCDs are unauthorized copies. I also
have with me the Complaint-A davit of Sony Music and IFPI that certi ed
that these are infringing copies, as well as the title list of Sony Music
wherein some of the CDs purchased are indicated. (Annex "10", Comment,
Rollo, p. 841)
B. Deposition of Baltazar aDSIHc
19. Question: How did you determine that the CDs you purchased are counterfeit,
pirated or unauthorized?
Answer:
The Attorney-in-fact of Sony Music and IFPI certi ed in his Complaint-A davit
that they are unauthorized copies. I also have with me a listing of Sony
Music titles and some of the CDs I purchased are in that list. 4 0
C. Deposition of Pedralvez
27. Question: What proof do you have they are producing infringing materials?
Answer:
We were given some samples by John Doe and Jane Doe. These are Kenny
Rogers Videoke, Engelbert Humperdinck Videoke, and Andrew E.
Wholesome CD. The informant told us that the said samples were being
reproduced in the facility.
28. Question: How do you know that all of these VCDs you purchased or got are
indeed unauthorized?
Answer:
The VRB has certi ed that they are unauthorized copies. (Annex "12", Comment,
Rollo, pp. 849-852).
While the language of the rst questioned Order may be viewed as encroaching
on executive functions, nonetheless, it remains that the order of quashal is entirely
independent of the proceedings in I.S. No. 2001-1158. And needless to stress, the DOJ
is by no means concluded by the respondent judge's ndings as regards the existence,
or the non-existence, of a crime.
We can, to a point, accord merit to petitioners' lament that the basis of the rst
questioned order, i.e., the mingling of the seized items with other items, is extraneous
to the determination of the validity of the issuance of the search warrant. It is to be
pointed out, though, that public respondent corrected her error when it was raised in
petitioners' motion for reconsideration. There can really be no serious objection to a
judge correcting or altogether altering his case disposition on a motion for
reconsideration, it being the purpose of such recourse to provide the court an
opportunity to cleanse itself of an error unwittingly committed, or, with like effect, to
allow the aggrieved party the chance to convince the court that its ruling is erroneous.
4 9 A motion for reconsideration before resort to certiorari is required precisely "to
afford the public respondent an opportunity to correct any actual or fancied error
attributed to it by way of re-examination of the legal and factual aspects of the case". 5 0
Similarly, as to the matter of the respondent judge's recognizing the April 11,
2002 motion to quash search warrant 5 1 led by the individual private respondents,
instead of by SLC, as presumptive owner of the seized items, such error was properly
addressed when respondent SLC, represented throughout the proceedings below by
the same counsel of its co-respondents, formally manifested that it was adopting the
same motion as its own. 5 2
It is apropos to point out at this juncture that petitioners have imputed on
individual private respondents criminal liability, utilizing as tools of indictment the very
articles and papers seized from the premises of SLC. Be that as it may, petitioners
should be deemed in estoppel to raise the personality of individual private respondents
to interpose a motion to quash. To be sure, it would be unsporting for petitioners to
prosecute individual private respondents on the basis of seized articles but on the
same breath deny the latter standing to question the legality of the seizure on the
postulate that only the party whose rights have been impaired thereby, meaning SLC,
can raise that challenge. There can be no quibbling that individual private respondents
CD Technologies Asia, Inc. 2020 cdasiaonline.com
stand to be prejudiced or at least be inconvenient by any judgment in any case based
on the seized properties. In a very real sense, therefore, they are real parties in interest
who ought not to be prevented from assailing the validity of Search Warrant 219-00,
albeit they cannot plausibly asked for the release and appropriate as their own the
seized articles. ESaITA
Petitioners' related argument that SLC could not have validly adopted individual
private respondents' motion to quash due to laches is untenable.
The records show that the seizure in question was effected on September 19,
2000. The complaint in I.S. No. 2000-1576 was led against the o cers of SLC, all of
whom, except for one, are also private respondents in the instant petition. I.S. No. 2000-
1576 was only resolved on January 15, 2001 when the DOJ dismissed the complaint on
the ground that SLC was, in fact, duly licensed by the VRB. Shortly thereafter, or on
February 6, 2001, less than ve (5) months after the seizure, private respondents
moved to quash both search warrants. 5 3 The motion clearly indicates private
respondents' desire for the return of the seized items, and there is nothing in the
records showing that petitioners objected to the motion on the ground that the
movants had no standing to question the warrants.
This bring Us to the second assailed order. As earlier stated, DOJ, in I.S. No.
2000-1576, found respondent SLC to be licensed by VRB to engage in the business of
replicating or duplicating videograms.
Petitioners would have the Court believe that the second questioned order was
based on a ground immaterial to the charge of infringement. A scrutiny of the text of
the said order, however, shows that the respondent judge denied petitioners' motion for
reconsideration because she was misled by the applicant's and his witnesses'
testimony. It may be that a VRB license is no defense to a charge of violating Section
208 of R.A. No. 8293. It must be stressed in this regard, however, that the core issue
here is the validity of the warrant which applicant secured on the basis of, among
others, his representation which turned out to be false. TcAECH
As above discussed, the answers of Agent Lavin and his witnesses to the public
respondent's searching questions, particularly those relating to how they knew that the
compact discs they purchased or received were illegal, unauthorized or infringing, were
based on certi cations and not personal knowledge. The subject warrant, as well as
Search Warrant No. 220-00, was issued nonetheless. It may well have been that the
issuing judge was, in the end, convinced to issue the warrants by means of the
erroneous VRB certi cation presented during the joint application hearing, overriding
whatever misgivings she may have had with the applicant's and his witnesses' other
answers. This Court, however, cannot engage in such speculation and sees no need to.
Summing up, the issuance of Search Warrant No. 219-00 was, at bottom,
predicated on the sworn testimonies of persons without personal knowledge of facts
they were testifying on and who relied on a false certi cation issued by VRB. Based as
it were on hearsay and false information, its issuance was without probable cause and,
therefore, invalid.
Given the foregoing perspective, the peripheral issues of (a) whether or not
petitioner IFPI (South East Asia), Ltd. failed to comply with the rules requiring the ling
of a certi cation on non-forum shopping; and (b) whether or not IFPI's board of
directors rati ed its conditional authorization for its attorney-in-fact to represent IFPI in
this petition, need not detain us long. In our review of the records, R.V. Domingo &
Associates, whose authority to represent the petitioners in this petition continues, had
CD Technologies Asia, Inc. 2020 cdasiaonline.com
duly executed the sworn certification on non- forum shopping.
In the same manner, this Court, having taken cognizance of this petition, need not
belabor the issue of whether or not petitioners have cavalierly breached the rule on
hierarchy of courts. Su ce it to state that, while the Court looks with disfavor on utter
disregard of its rules, 5 4 it is within its power to suspend its own rules or to except a
particular case from its operation whenever the ends of justice so requires, as here.
WHEREFORE, the instant petition is hereby DISMISSED and the temporary
restraining order issued on February 19, 2003 is consequently RECALLED.
Costs against petitioners.
SO ORDERED.
Panganiban, Sandoval-Gutierrez and Corona, JJ., concur.
Carpio Morales, J., is on leave.
Footnotes
1. Rollo, pp. 60-62.
2. Rollo, pp. 64-65.
31. People vs. Benhur Mamaril, 420 SCRA 662 [2004] citing Mata vs. Bayona, 128 SCRA 388
[1984].
32. Tambasen vs. People, 246 SCRA 184 [1995].
36. People vs. Miclat, 386 SCRA 515 [2002]; People vs. Villaviray , 262 SCRA 13 [1996]; People
vs. Valdez, 347 SCRA 594 [2000].
37. Supra.
38. At p. 173.
39. At p. 74.
43. At p. 175.
44. 380 SCRA 700 [2002].
50. Pure Foods Corp. vs. NLRC, 171 SCRA 415 [1989] cited in Sevillana vs. I.T.(International)
Corp., 356 SCRA 451 [2001].
51. Supra, Note 22.
CD Technologies Asia, Inc. 2020 cdasiaonline.com
52. Supra, Note 24.
53. Supra, See Note 12.