Sony Computer Entertainment, Inc. vs. Supergreen

SONY COMPUTER ENTERTAINMENT, INC.
, petitioner,
vs.
SUPERGREEN, INCORPORATED, respondent.
QUISUMBING, J.
G.R. No. 161823
March 22, 2007
Case Summary: Sony Computer Entertainment, Inc. filed a complaint with the National Bureau of
Investigation (NBI) against respondent Supergreen, Incorporated for the reproduction and distribution
of counterfeit Playstation products. Search Warrants were issued by the RTC of Manila for premises in
Cavite and Paranaque where said counterfeit products were seized. Respondent filed 2 motions to
quash the search warrants: the first one was denied which contends that the search warrants failed to
particularly describe the properties to be seized; the second one declared the search warrants in Cavite
quashed for lack of jurisdiction. Petitioner’s petition for certiorari and motion for reconsideration were
dismissed and denied. Hence the petition for review on certiorari to the Court. The court held that
Cavite is beyond the territorial jurisdiction of the RTC of Manila, therefore they cannot issue a search
warrant covering premises located in it, However, the crime committed is a continuing crime, therefore
petitioner may apply for a search warrant in any court where any element of the alleged offense was
committed. Hence, the Court declared the search warrants covering the Cavite premises valid.
Facts:
 Sony Computer Entertainment, Inc. filed a complaint with the National Bureau of Investigation
(NBI) against respondent Supergreen, Incorporated.
 The NBI found that respondent engaged in the reproduction and distribution of counterfeit
“PlayStation” game software, consoles and accessories in violation of Sony Computer’s
intellectual property rights.
 April 24, 2001 - the RTC of Manila issued Search Warrants Nos. 01-1986 to 01-1988 covering
respondent’s premises at Trece-Tanza Road, Purok 7, Barangay de Ocampo, Trece Martires City,
Cavite, and Search Warrants Nos. 01-1989 to 01-1991 covering respondent’s premises at Room
302, 3rd Floor Chateau de Baie Condominium, 149 Roxas Boulevard corner Airport Road,
Parañaque City
 NBI simultaneously served the search warrants and seized a replicating machine and several
units of counterfeit “PlayStation” consoles, joy pads, housing, labels and game software.
 June 11, 2001 - respondent filed a motion to quash the search warrants covering the Cavite
premises and/or release of seized properties on the ground that the search warrant failed to
particularly describe the properties to be seized. It was denied by the trial court.
 August 4, 2001 - respondent filed another motion to quash, this time, questioning the propriety
of the venue.
o Petitioner opposed the motion on the ground that it violated the omnibus motion rule
wherein all objections not included shall be deemed waived.
 October 5, 2001 - the trial court affirmed the validity of Search Warrants covering respondent’s
premises in Parañaque City, but quashed Search Warrants covering respondent’s premises in
Cavite. The trial court held that lack of jurisdiction is an exception to the omnibus motion rule
and may be raised at any stage of the proceedings.
 Petitioner elevated the matter to the Court of Appeals, which dismissed the petition for
certiorari.
o under Section 2, Rule 126 of the Rules of Court, the RTC of Manila had no jurisdiction to
issue a search warrant enforceable in Cavite, and that lack of jurisdiction was not
deemed waived.
 Petitioner moved for reconsideration but the same was denied.
 Hence, this petition PETITION for review on certiorari.
 Petitioner contends:
o Citing Malaloan v. Court of Appeals, where this Court clarified that a search warrant
application is only a special criminal process and not a criminal action, petitioner
contends that the rule on venue for search warrant application is not jurisdictional.
Hence, failure to raise the objection waived it.
o that applying for search warrants in different courts increases the possibility of leakage
and contradictory outcomes that could defeat the purpose for which the warrants were
issued.
o that even granting that the rules on search warrant applications are jurisdictional, the
application filed either in the courts of the National Capital Region or Fourth Judicial
Region is still proper because the crime was continuing and committed in both
Parañaque City and Cavite.
 Respondent counters:
o that Section 2 Rule 126 of the Rules of Court is explicit on where applications should be
filed and provided the territorial limitations on search warrants.
 Respondent claims that Malaloan is no longer applicable jurisprudence with the
promulgation of the 2000 Rules of Criminal Procedure.
o that the doctrine on continuing crime is applicable only to the institution of a criminal
action, not to search warrant applications which is governed by Rule 126, and in this
case Section 2.
Issue/Held:
1. WHETHER OR NOT VENUE IN SEARCH WARRANT APPLICATIONS INVOLVES TERRITORIAL
JURISDICTION. YES
o Respondent’s premises in Cavite, within the Fourth Judicial Region, is definitely beyond
the territorial jurisdiction of the RTC of Manila, in the National Capital Region. Thus, the
RTC of Manila does not have the authority to issue a search warrant for offenses
committed in Cavite.
2. WHETHER OR NOT THE CORRECTNESS OF VENUE IN AN APPLICATION FOR SEARCH WARRANT IS

DEEMED WAIVED IF NOT RAISED BY THE RESPONDENT IN ITS MOTION TO QUASH. YES
o When the latter court issues the search warrant, a motion to quash the same may be
filed in and shall be resolved by said court, without prejudice to any proper recourse to
the appropriate higher court by the party aggrieved by the resolution of the issuing
court. All grounds and objections then available, existent or known shall be raised in the
original or subsequent proceedings for the quashal of the warrant, otherwise they shall
be deemed waived. (Found in the case of Malaloan, not in the decision itself)
3. WHETHER OR NOT THE OFFENSES INVOLVED IN THE SUBJECT SEARCH WARRANTS ARE
“CONTINUING CRIMES” WHICH MAY BE VALIDLY TRIED IN ANOTHER JURISDICTION WHERE THE
OFFENSE WAS PARTLY COMMITTED.
o Nonetheless, we agree with petitioner that this case involves a transitory or continuing
offense of unfair competition under Section 168 of Republic Act No. 8293, competition
under Section 168 of Republic Act No. 8293,
o Pertinent too is Article 189 (1) of the Revised Penal Code that enumerates the elements
of unfair competition
o Respondent’s imitation of the general appearance of petitioner’s goods was done
allegedly in Cavite. It sold the goods allegedly in Mandaluyong City, Metro Manila. The
alleged acts would constitute a transitory or continuing offense. Thus, clearly, under
Section 2 (b) of Rule 126, Section 168 of Rep. Act No. 8293 and Article 189 (1) of the
Revised Penal Code, petitioner may apply for a search warrant in any court where any
element of the alleged offense was committed, including any of the courts within the
National Capital Region (Metro Manila).
Decision: WHEREFORE, the petition is GRANTED. The Decision dated June 30, 2003 and the Resolution
dated January 16, 2004 of the Court of Appeals in CA-G.R. SP No. 67612 are SET ASIDE. The Order
dated October 5, 2001 of the Regional Trial Court of Manila, Branch 1, is PARTLY MODIFIED. Search
Warrants Nos. 01-1986 to 01-1988 are hereby declared valid. SO ORDERED.
Notes: If the criminal case which was subsequently filed by virtue of a search warrant is raffled off to a
branch other that the one which issued the warrant, all incidents relating to the validity of the warrant
should be consolidated with the branch trying the criminal case. (People vs. Bans, 239 SCRA 48 [1994])
R.A. No. 8293 and R.A. No. 166 are special laws conferring jurisdiction over violations of intellectual
property rights to the Regional Trial Courts which should therefore prevail over R.A. No. 7691, which is a
general law. (Samson vs. Daway, 434 SCRA 612[2004])
Article 189 (1) of the Revised Penal Code enumerates the elements of unfair competition, to wit:
a) That the offender gives his goods the general appearance of the goods of another manufacturer
or dealer;
b) That the general appearance is shown in the (1) goods themselves, or in the (2) wrapping of
their packages, or in the (3) device or words therein, or in (4) any other feature of their
appearance;
c) That the offender offers to sell or sells those goods or gives other persons a chance or
opportunity to do the same with a like purpose; and
d) That there is actual intent to deceive the public or defraud a competitor.”

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SONY COMPUTER ENTERTAINMENT, INC.

2. WHETHER OR NOT THE CORRECTNESS OF VENUE IN AN APPLICATION FOR SEARCH WARRANT IS

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