Philippines Supreme Court Draws the Line: Commercial Misuse vs. Digital Fair Use

The Supreme Court En Banc has established clear rules in Philippines music performance and the role of the CMO.

The Filipino Society of Composers, Authors and Publishers, Inc. (FILSCAP) is an accredited Collective Management Organization (CMO) in the Philippines. It administers and manages public performance, broadcast, digital streaming, and mechanical reproduction rights—for local and international music.

Its longstanding IP battles for musicans span three major decisions in recent years —FILSCAP v. Anrey (2022), COSAC v. FILSCAP (2023), and FILSCAP v. Wolfpac Communications (2025).

In the first case (Anrey)  FILSCAP sued Sizzling Plate restaurants for playing copyrighted radio broadcasts over dining room speakers without a license. The court confirmed it was public performance and that CMOs could collect royalties from physical commercial venues.

In the second case FILSCAP sued Off the Grill Bar for hosting unlicensed live acts and playing background music. COSAC argued that it no knowledge of the FILSCAP rights. The court confirmed that Venue owners are vicariously liable for live band setlists and the performance content, and lack of published information on FILCAP's rights was irrelevant and would create red tape for CMOs.

Last year FILSCAP pursued Wolfpac for offering a 20-second "Listen B4 U Download" preview feature on its ringtone platform, demanding performance royalties. The complaint was dismissed. Web-based streaming falls under "Communication to the Public," but momentary pre-listening clips are protected under Fair Use (Section 185). To prevent the preview listinging was copyright overreach in digital commerce and streaming platforms' short trial clips were not subject to performance licenses.

The Court’s progression hepled clarify for venues what the CMO could do. Anrey stopped businesses from free-riding on music for physical ambiance, COSAC organised rights enforcement, and Wolfpac protected digital discovery/consumer features from over-licensing.