FACTS:

Petitioner, Microsoft Corporation, is the copyright and trademark owner of various computer software programs. Respondent, Rolando Manansala, doing business as DATAMAN TRADING COMPANY and/or COMIC ALLEY, was found to be distributing and selling unauthorized copies of Microsoft computer software programs. A search warrant was issued, resulting in the seizure of several illegal copies of Microsoft programs. Petitioner filed a complaint against respondent for violation of Section 29 of Presidential Decree No. 49 (Decree on Intellectual Property). However, the Department of Justice (DOJ) dismissed the charge due to lack of evidence, recommending instead a charge for violation of Article 189 of the Revised Penal Code. Petitioner filed a motion for partial reconsideration, arguing that printing or copying is not essential in the crime of copyright infringement under Section 29. The motion was denied by the DOJ and the petition for review was also denied. Petitioner then filed a petition for certiorari with the Court of Appeals (CA) to annul the DOJ's dismissal. The CA affirmed the dismissal by the DOJ, prompting petitioner to file the present appeal before the Supreme Court.

ISSUES:

1. Whether printing or copying is essential in the commission of the crime of copyright infringement under Section 29 of Presidential Decree No. 49.

2. Whether the determination of probable cause by the public prosecutor is subject to judicial scrutiny.

RULING:

1. The mere selling of pirated computer software constitutes copyright infringement under Section 29 of Presidential Decree No. 49. The Department of Justice (DOJ) committed grave abuse of discretion in dismissing the charge of copyright infringement on the ground of lack of evidence. The public prosecutor's dismissal disregarded the acts sufficient to establish the well-founded belief that the crime of copyright infringement had been committed and that the respondent was probably guilty thereof.

2. Although the determination of probable cause by the public prosecutor is generally not subject to judicial scrutiny, an exception exists when the determination is tainted with grave abuse of discretion.

PRINCIPLES:

• Copyright infringement constitutes a trespass on the exclusive rights of the copyright owner and is protected by law. It includes any unauthorized performance of the acts mentioned in Section 5 of Presidential Decree No. 49, such as printing, copying, distributing, and selling copyrighted works.

• The determination of probable cause by the public prosecutor is an executive function and is generally not subject to judicial scrutiny. However, it may be subject to judicial scrutiny when the determination is tainted with grave abuse of discretion.