Copyright Grp04 MEMORANDUM

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Republic of the Philippines

Regional Trial Court


Branch 24
CebuCity, Cebu

TAYLOR SWIFT
Petitioner,
Civil Case no. 01-310
-versus- For: Copyright Infringement

ITHACA HOLDINGS
as represented by SCOOTER BRAUN
Defendant

x-------------------------------------x
MEMORANDUM

COME NOW DEFENDANT, through the undersigned counsel, unto


this Honorable Court most respectfully submit and present this
Memorandum in the above-titled case and aver that:

THE PARTIES

1. TAYLOR SWIFT, herein PETITIONER, is of legal age, Single,


Filipino citizen and having a residence at 11th Flr.,
AppleOne-Equicom Tower, Mindanao Ave., Cebu Business Park,
6000 Cebu City;
2. ITHACA HOLDINGS, herein DEFENDANT, is a corporation duly
organized, registered and existing under and by virtue of the laws of
the Republic of the Philippines, with principal office or place of
business at Unit 404, 4th Flr., eBloc 2 Tower, W Gionson St., Lahug,
6000 Cebu City, Philippines;
3. SCOOTER BRAUN, herein DEFENDANT, is of legal age, Single,
Filipino citizen and the duly elected President and legal representative
of ITHACA HOLDINGS.

ANTECEDENT FACTS
1. PETITIONER is an internationally renowned singer, songwriter, and
music producer who is under the music label Big Machine;

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2. When PETITIONER was signed to Big Machine, both parties agreed
that all of her master recordings of her first six albums would be
owned by the label for a certain period of time;
3. On 30 Jun 2019, DEFENDANTS acquired Big Machine Label Group
and all of its recorded music assets for just USD 300,000,000.00
(Three Hundred Million Dollars). The deal includes all of
PETITIONER’s master recordings;
4. Back in 2018 when PETITIONER’s label contract expired, she
negotiated to buy back all her master recordings. However, she failed
to acquire it;
5. PETITIONER has DEFENDANT SCOOTER BRAUN to a private
equity firm, without offering it first to her. All her master recordings
(alone) were sold for USD 300,000,000.00 (Three Hundred Million
Dollars);
6. PETITIONER now plans to re-record all her songs from her first five
albums from the master recordings to create a new master recording.

ISSUES

A. Whether or not Petitioner is allowed by law to re-record all her songs


from the first six albums without violating the copyright laws? Will it
constitute copyright infringement?

B. Whether or not Defendants can prohibit Petitioner from performing


any of her songs from the first six albums?

C. What are the respective rights and obligations of the following:


a. Defendants towards Petitioner
b. Petitioner towards Defendants

ARGUMENTS

A. No. Petitioner is not allowed by law to re-record her songs without


violating the copyright laws. As the lyricist and songwriter of the
songs, she only retains ownership of the musical compositions.
Whereas Defendant owns the Masters of the music on her albums,
therefore re-recording the songs would constitute copyright
infringement.

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Under Philippine law, copyright infringement occurs when there is a
violation of any of the exclusive economic or moral rights granted to
the copyright owner. It may also consist in aiding or abetting such
infringement. Infringement consists in the doing by any person,
without the consent of the owner of the copyright, of anything the sole
right to do which is conferred by statute on the owner of the
copyright.

It is committed by any person who shall use original literary or artistic


works, or derivative works, without the copyright owner’s consent, in
this case Defendant’s consent, in such a manner as to violate the
foregoing copy and economic rights.

In Habana vs. Robles (G.R. No. 131522 dated July 19, 1999), the
Supreme Court emphatically held that it is not required that the
entire work or even a large portion thereof be copied in order for
copyright infringement to exist. It is enough that so much is taken
that the value of the original work is substantially diminished.

The General Rule is that the private reproduction of a published work


in a single copy, where the reproduction is made by a natural person
exclusively for research and private study, shall be permitted, without
the authorization of the owner of copyright in the work [Sec. 187.1,
RA 8293].

However, an exception - such permission shall not extend to an entire


book, or a substantial part thereof, or of a musical work in graphic
form by reprographic means. Petitioner falls under this exception
should she attempt to re-record the songs as musical works require
permission from the copyright owner to reproduce them.

B. Defendant, as owner of the master recordings, may prohibit the


Petitioner from performing her songs under sec. 208 of the IPC, as
amended:

208.1. The right to authorize the direct or indirect reproduction of


their sound recordings, in any manner or form; the placing of these
reproductions in the market and the right of rental or lending;

208.2. The right to authorize the first public distribution of the original
and copies of their sound recordings through sale or rental or other
forms of transferring ownership;

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208.3. The right to authorize the commercial rental to the public of the
original and copies of their sound recordings, even after distribution
by them by or pursuant to authorization by the producer. (Sec. 46, P.D.
No. 49a)

208.4. The right to authorize the making available to the public of


their sound recordings in such a way that members of the public may
access the sound recording from a place and at a time individually
chosen or selected by them, as well as other transmissions of a sound
recording with like effect.

Petitioner performing her songs constitutes indirect reproduction of


the sound recordings, Performing also means making it available to
the public. It is a violation of Defendant’s right as owners of the
Master recordings. Therefore, the Defendant as owners of the Master
Recordings can prohibit the Petitioner from performing her songs.

C. In the issue at hand, the rights and obligations of the parties of the
parties are as follows:

That the defendant, Ithaca Holdings, enjoys the rights established on


the provisions of the Intellectual Property Code of the Philippines.

Defendant will continue to faithfully adhere and administer:

Sec. 200 of RA 8293, as amended


Sale or Lease of Work - in every sale or lease of an original work of
painting or sculpture or of the original manuscript of a writer or
composer, subsequent to the first disposition thereof by the author, the
author or his heirs shall have an inalienable right to participate in the
gross proceeds of the sale or lease to the extent of five percent (5%).
This right shall exist during the lifetime of the author and for fifty (50)
years after death.

Sec. 213.1 of RA 8293, as amended


Subject to the provisions of Subsection 213.2 to 213.5, the copyright
in works under section 172 and 173 shall be protected during the life
of the author and for fifty (50) years after his death. This rule also
applies to posthumous works.

213. 2 of RA 8293, as amended

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In case of works of joint authorship, the economic rights shall be
protected during the life of the last surviving author and for fifty (50)
years after his death.

That the petitioner, Taylor Swift, enjoys the rights established on the
provisions of the Intellectual Property Code of the Philippines.

Petitioner will continue to faithfully adhere and administer:

Sec. 200 of RA 8293, as amended


Sale or Lease of Work - in every sale or lease of an original work of
painting or sculpture or of the original manuscript of a writer or
composer, subsequent to the first disposition thereof by the author, the
author or his heirs shall have an inalienable right to participate in the
gross proceeds of the sale or lease to the extent of five percent (5%).
This right shall exist during the lifetime of the author and for fifty (50)
years after death.

213.1 of RA 8293, as amended


Subject to the provisions of Subsection 213.2 to 213.5, the copyright
in works under section 172 and 173 shall be protected during the life
of the author and for fifty (50) years after his death. This rule also
applies to posthumous works.

178. 2 of RA 8293, as amended


In the case of works of joint authorship, the co-authors shall be the
original owners of the copyright and in the absence of agreement,
their rights shall be governed by the rules on co-ownership. If,
however, a work of joint authorship consists of parts that can be used
separately and the author of each part can be identified, the author of
each part shall be the original owner of the copyright in the part that
he has created.

178.4 of RA 8293, as amended


In the case of a work-commissioned by a person other than an
employer of the author and who pays for it and the work is made in
pursuance of the commission, the person who so commissioned the
work shall have ownership of the work, but the copyright thereto shall
remain with the creator, unless there is a written stipulation to the
contrary.
180 of RA 8289, Rights of Assignee.

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80.1. The copyright may be assigned in whole or in part. within the
scope of the assignment, the assignee is entitled to all the rights and
remedies which the assignor had with respect to the copyright.

194 of RA 8293, as amended


An author cannot be compelled to perform his contract to create a
work or for the publication of his work already in existence. However,
he may be held liable for damages for breach of such contract. (Sec.
35, P.D. No. 49)

RELIEF

WHEREFORE, all premises considered, in deep respect to this honorable


Court, we pray Injunction Restraining Infringement be granted in favor of
Defendant Ithaca Holdings Inc., and that Petitioner Taylor Swift be enjoined
and sanctioned to honor the terms of our contractual agreement founded on
the provisions of the Intellectual Property Code of the Philippines mentioned
herein. Other just and equitable remedies, the honorable Court may find
merit under the circumstances, then to, we pray.

BY:

COUNSELS FOR ITHACA HOLDINGS


ATTY. DEMI F. ALBARILLO
ATTY. ERA R. GASPER
ATTY. SOPHIA INEZ SONGALIA
ATTY. JUN KYLE L. SONGCOG

Copy furnished:
ATTY. FLOREN AGUSTIN CHAR G. MINDAÑA

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