2017 Mercantile Law, Q7

A. Virtucio was a composer of llocano songs who has been quite popular in the llocos Region. Pascuala is a professor of music in a local university with special focus on indigenous music. When she heard the musical works of Virtucio, she purchased a CD of his works. She copied the CD and sent the second copy to her Music instructions for the class to listen to the CD and analyze the works of Virtucio.
Did Pascuala thereby infringe Virtucio’s copyright? Explain your answer. (4%)
B. Super Biology Corporation (Super Biology) invented and patented a miracle medicine for the cure of AIDS. Being the sole manufacturer, Super Biology sold the medicine at an exorbitant price. Because of the sudden prevalence of AIDS cases in Metro Manila and other urban areas, the Department of Health (DOH) asked Super Biology for a license to produce and sell the AIDS medicine to the public at a substantially lower price. Super Biology, citing the huge costs and expenses incurred for research and development, refused.
Assuming you are asked your opinion as the legal consultant of the DOH, discuss how you will resolve the matter. (4%)

Quick check

Under Section 185 of the Intellectual Property Code, what constitutes non-infringing fair use of a copyrighted work?

Under Section 93 of Republic Act Number 8293, under what condition may the Intellectual Property Office grant a compulsory patent license?

Why is Professor Pascuala not liable for copyright infringement when she copied Virtucio's CD for her music class?

What legal action should the Department of Health take to address Super Biology Corporation's exorbitant pricing of patented AIDS medicine?

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Which primary statute governs copyrights, patents, fair use, and compulsory licensing in the Philippines?

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1. Copyright Fair Use
Under Section 185 of the Intellectual Property Code of the Philippines (Republic Act Number 8293), the fair use of a copyrighted work for criticism, comment, news reporting, teaching including multiple copies for classroom use, scholarship, or research is not an infringement of copyright. In determining whether the use made of a work in any particular case is a fair use, factors such as the purpose and character of the use, the nature of the copyrighted work, the amount used, and the effect upon the potential market are considered. Educational, non-profit copying for classroom analysis qualifies as non-infringing fair use.

2. Compulsory Patent License
Under Section 93 of Republic Act Number 8293, as amended, the Director General of the Intellectual Property Office may grant a compulsory license to exploit a patented invention without the agreement of the patent owner under specified statutory circumstances. Compulsory licensing is authorized when a national emergency or other circumstances of extreme urgency exist, or where public interest, particularly national security, nutrition, health, or the development of other vital sectors so requires. The patent owner receives reasonable remuneration, but cannot block the government from licensing the life-saving medicine to address a public health crisis.

3. Government Patent Use
Under Section 74 of Republic Act Number 8293, a government agency or third person authorized by the government may exploit a patented invention even without agreement of the patent owner where the public interest, particularly national security, nutrition, health, or the development of other vital sectors so requires. In cases of public health necessity, the Department of Health may petition the Intellectual Property Office for government use or compulsory licensing of patented pharmaceuticals to ensure public access to affordable miracle medicines during widespread health emergencies.

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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