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Dynamite Communications, Inc. (Dynamite) sells mobile phone applications. Its website also permits a prospective consumer to listen to a 20-second…

2026 Bar Exam · Commercial & Taxation Law · Question 11 · Essay

The question

Dynamite Communications, Inc. (Dynamite) sells mobile phone applications. Its website also permits a prospective consumer to listen to a 20-second portion of a song by clicking the “pre-listening function” before downloading the ringback tone. PINOYSCAP, an association of copyright owners of musical works who grants licenses to their works, demanded Dynamite to secure the necessary performance licenses and pay the appropriate royalties since some of the ringback tones are part of their repertoire of copyrighted works. Dynamite did not secure the licenses and refused to pay royalties and asserted that the “pre-listening function” of its website does not constitute public performance. Does the use of sample ringtones in the “pre-listening function” on Dynamite’s website constitute public performance? Explain.

Held

No, the use of sample ringtones in the “pre-listening function” on Dynamite’s website does not constitute public performance, under Section 171.6 and Section 177.6 of the Intellectual Property Code, as clarified by the Supreme Court in Filipino Society Of Composers v. Wolfpac Communications, G.R. No. 184661 (2025-02-25).

Explanation

Public performance, as defined in Section 171.6 of the Intellectual Property Code, involves making a work audible at a place where persons outside the normal circle of family and closest social acquaintances are or can be present, without the need for communication as defined in Section 171.3. The key element is the presence or potential presence of a public audience beyond the private circle. Section 177.6 grants the copyright owner the exclusive right to authorize or prevent public performance of the work. The Supreme Court in the Wolfpac case clarified that the act of making sample ringtones available for pre-listening on a website does not amount to public performance because the actual listening is done privately by potential consumers, not in a public setting. The Court emphasized that the prohibition is against public performance, not performance in general. The website merely provides the means for private individuals to access the samples, which is not the same as performing the work publicly.

Application to the facts

Dynamite Communications, Inc.’s “pre-listening function” allows prospective consumers to listen to a 20-second portion of a song privately on their own devices before deciding to download the ringback tone. This situation is analogous to the Wolfpac case, where the Supreme Court held that such pre-listening does not constitute public performance because the listening is done privately by individual users, not in a public place or to a public audience. The users are within their own private circles, and there is no public perception or gathering of persons outside these circles. Dynamite’s role is limited to providing the technological means for private access, not performing the work publicly. Therefore, the use of sample ringtones in the pre-listening function does not infringe the exclusive right of public performance under the Intellectual Property Code.

This is general legal information, not legal advice.