2014 Mercantile Law, Q29

KKis from Bangkok, Thailand. She studies medicine in the Pontifical University of Santo Tomas (UST). She learned that the same foreign books prescribed in UST are 40-50% cheaper in Bangkok. So she ordered 50 copies of each book for herself and her classmates and sold the books at 20% less than the price in the Philippines. XX, the exclusive licensed publisher of the books in the Philippines, sued KK for copyright infringement. Decide. (4%)

Quick check

Does the resale of genuine foreign medical textbooks purchased abroad constitute copyright infringement under Republic Act Number 8293?

What legal doctrine exhausts a copyright holder's exclusive right to control the subsequent distribution of a specific physical copy?

Can an exclusive Philippine licensee publisher sue a student for importing and reselling legally manufactured original books from abroad?

Under Republic Act Number 8293, what is required for the first sale doctrine to apply to imported copyrighted works?

Choices available with full access.

Which primary statute governs intellectual property, copyright owner rights, and first sale principles in the Philippines?

Choices available with full access.

Unlock the full Commercial and Tax Law answers

Learn more about these topics

1. First Sale Doctrine
Under Section 177 and Section 190 of the Intellectual Property Code of the Philippines (Republic Act Number 8293), the first sale doctrine exhausts the copyright owner's exclusive distribution right over a particular physical copy of a work once that copy has been lawfully sold or transferred under the authority of the copyright owner. Once a genuine copy is placed in commerce with the owner's consent, the lawful owner of that specific copy possesses the legal right to import, resell, transfer, or otherwise dispose of that particular physical copy without incurring liability for copyright infringement.

2. Copyright Owner Rights
Under the Intellectual Property Code of the Philippines, copyright ownership confers exclusive economic rights upon the author or publisher, including the rights of reproduction, public performance, transformation, and first public distribution. However, these exclusive rights do not grant the copyright holder or an exclusive territorial licensee perpetual control over subsequent commercial resales or parallel importation of legally manufactured copies. The publisher's exclusive territorial licensing rights cannot restrict subsequent sales of genuine copies that were lawfully manufactured and initially purchased in a foreign market.

3. Fair Use Importation
Under Section 185 and Section 190 of Republic Act Number 8293, importation of genuine copyrighted works for personal, educational, or non-commercial scholarly use by students and institutions is recognized under Philippine intellectual property law. Where genuine foreign medical textbooks are purchased abroad and brought into the Philippines to serve educational needs of classmates at reduced prices, such parallel importation of legitimate copies does not constitute actionable copyright infringement, provided the imported books are genuine originals manufactured under valid license.

About these questions and answers
The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

They are not official answers, have no connection with the Supreme Court, the Office of the Bar Confidant, or any bar review institution, and are not endorsed by any of them. Official answer keys, where released, should be preferred over anything here.Nothing on this page is legal advice, and reading it creates no lawyer-client relationship. Do not rely on any suggested answer in an actual legal matter. Consult counsel on your own facts.Suggested answers reflect the law and jurisprudence the author considers applicable as of the date shown.

Where a question comes from an earlier examination, the suggested answer applies the law as it now stands, which may differ from the law in force when the question was given, and may therefore differ from what would have been the correct answer at that time. Where the difference is material, the answer notes it.The practice scoring feature measures wording overlap with the suggested answer. It is not a grade, carries no official weight, and says nothing about whether your reasoning is sound.Errors are possible. If you find one, please tell me and I will correct it.Last reviewed: October 2026