Bayanihan Music vs BMG

On July 16, 1973, private respondent Jose Mari Chan (Chan) entered into a contract with petitioner
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". On March 11, 1976, 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 his co-
respondent BMG Records (Pilipinas) [BMG] to record and distribute the aforementioned musical
compositions in a then recently released album of singer Lea Salonga.

Bayanihan filed a complaint against Chan and BMG for violation of Section 216 the Intellectual
Property Code of the Philippines, for 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.

Bayanihan contended that as assignee of the copyrights over the musical compositions, it has a clear
legal right to it; that respondents BMG and Chan violated its copyrights over the same musical
compositions; that despite knowledge by respondent BMG of petitioner's copyrights over the said
musical compositions, BMG continues to record and distribute the same, to petitioner's great and
irreparable injury.

Chan, alleged that: (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;

Issue: WON respondents can be validly restrained from further recording and distributing the subject
musical compositions, despite its copyright registration by the petitioner.

Ruling

No. Chan, being undeniably 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.