Presentation on theme: "Heirs of Wilfredo R. Reotutar"— Presentation transcript:
1Heirs of Wilfredo R. Reotutar P R E S E N T SMASA LOTTO~EZ2 BRIEFUnit 1812 Swire Elan Suites, No. 49 Annapolis St. G.H. S.J. Phils. * Tel.No
2DISCLAIMER WARNING to the PUBLIC! The heirs and administrator of IPR/s of the lateGEN WILFREDO R REOTUTAR (Ret),PUBLISHER & DISTRIBUTOR of the Book/s:Anatomy of GAMBLING (1st, 2nd 3rd edition/s)GAMBLING Menace in the PhilippinesandCOPYRIGHT HOLDER of the ff:COCKFIGHTING LOTTO of the PhilippinesMASA LOTTOwould like to inform the PUBLIC that they have not sold nor entered into an agreement with any individual or group for the publishing and operation of the above. Kindly channel all concerns and interest to the contacts first written.
3Introduction: THE TALE of TWO NUMBERS GAME This is a summary of a civil case (See attached Complaint Affidavit with pertinent annexes, Annex A) which was filed by Plaintiffs, Heirs of Gen. Wilfredo Reotutar on December 1, 2005 against PCSO for Infringement with Application for Injunction and Damages based on the Certificate of Copyright Registration (See attached Registration with Game Literature, Annex B) issued to the plaintiffs’ father, Wilfredo R. Reotutar (See attached credentials of authorship, expertise and authority, Annex C).Instead of filing an answer, a Motion to Dismiss (See Attached Motion and Related Reply by Plaintiffs, Annex D) was filed by the PCSO lawyers which was subsequently denied by the court, copy of court order is hereto attached as Annex “E”.Prior to the issuance of resolution on PCSO’s motion, Court strongly suggested that the parties find ways to settle the case out of court as evidenced by an ORDER it issued on March 17, 2006 and the transcript of the hearing on such date, copy is hereto attached as Annex “F”.Again, in the preliminary conference of this case, the Clerk of Court suggested that both parties settle the case out of court. As a matter of fact, this case was referred to the Mediation Office for the same purpose. After which, if no settlement is reached, will again be referred back to them, the Court.During the last mediation hearing on October 27, 2006 PCSO representative, while present, informed the Plaintiffs that she has no authority to negotiate with them but suggested that Plaintiffs instead write the PCSO management about said claim to put finality on the possibility of settlement. Hence, a letter was written, sent & received to the PCSO Directors (See Letter to PCSO, Annex G).To date, settlement is forthcoming according to the signals sent by PCSO through its Counsels. Ironically, this is not the case as during the past two preliminary conferences, Counsels failed to appear. Fine that there are just certain measures that PCSO must undertake in order to make settlement as technically viable as possible and will not be disadvantageous to PCSO and the government but in reality, these are just ploys that are more likely delaying tactics to drain the financial resources of the plaintiffs and eventually earn an edge in the on-going court proceedings.
4Introduction: THE TALE of TWO NUMBERS GAME When abovementioned case was filed, Plaintiffs were not quit certain about their chance of getting the final decision in their favor. Although PCSO’s mindset may find losing this case highly improbable, all that tainted as evidenced by the abovementioned Denial of their Motion to Dismiss issued by the court. Not to mention, the charter violation being committed by PCSO in the operation of such (See Operational Glitch, Annex H). Probability of winning the case somehow increased, and the court may end up awarding a settlement (see attached conservative computation of monetary damages, Annex I) more than what the Plaintiffs have hoped for.However, Plaintiffs would not want this to happen as their late father (See Death Certificate, Annex J) conceptualized the “Masa Lotto” a.k.a. “EZ2 Ball” under the government’s operation, to aid in its fund raising campaign, but with “appropriate consideration”. Most Lotto outlets, PCSO suppliers alike, privateers like us, the heirs, declared twenty (20.00%) percent increase in revenues upon the introduction and addition of EZ2 Ball to their line up of games. To make matters worse, the good chairman of PCSO even made mention about providing assistance to those who stand to lose their livelihood when “jueteng” operators stop their illegal activities as a result to EZ2’s operation.(See attached Media Disclosures, Annex K)If this constitutes fair play, Plaintiffs’ rest their case. What they actually have at the backs of their minds is a reasonable amount of financial settlement which the institution (PCSO) could very well afford considering its charity-oriented existence.*Various documents (mostly accurate reproduction of the originals for legibility purposes) of this case are attached which may be the basis of a compromise agreement between and among parties concerned.*certified 99.00% accurate reproduction of the originals
5Annex A: COMPLAINT AFFIDAVIT with ANNEXES Republic of the PhilippinesNational Capital Judicial RegionRegional Trail CourtQuezon City, Branch 90HEIRS OF THE LATE CIVIL CASE NoMAJ. GEN Wilfredo R. Reotutar, For: INFRINGEMENT withHEREIN REPRESENTED BY APPLICATION for INJUNCTIONAnna Melissa Ma. J. Reotutar and DAMAGESPlaintiffs,~versus~PHILIPPINE CHARITY SWEEPSTAKES OFFICE (PCSO)Defendant,x xCOMPLAINTCOMES NOW, Plaintiffs by undersigned counsel, to this Honorable Court most respectfully state:1. Plaintiffs, Anna Melissa Ma. J. Reotutar, Edmundo C.J. Reotutar, Klarissa S. Reotutar and Florida S. Reotutar are all of legal age, Filipinos herein represented by Anna Melissa Ma. J. Reotutar with address at 51 Pink St Odelco Subd. San Bartolome, Q.C., by virtue of a Special Power of Attorney, a copy is hereto attached as Annex “A”;Defendant is a government-owned corporation duly organized and existing under and by virtue of the laws of the Philippines with address at PCSO Complex, E. Rodriguez Ave., Quezon City, Philippines where it may be served summons and other processes.
6Annex A: COMPLAINT AFFIDAVIT with ANNEXES 2. Plaintiffs are the legitimate and sole heirs of the late Maj. Gen. Wilfredo R. Reotutar who died on April 16, 2003 being the surviving sons and daughters of the latter.3. Defendant conducts sweepstakes races, lotteries and other similar activities granted through legislative franchise, Republic Act No. 1169, as amended (PCSO Charter) as the principal government agency for raising and providing funds for health programs, medical assistance and services and charities of national character.4. Plaintiffs’ departed father was a member of the Philippine Military Academy Class of After graduating from the academy, he joined the now defunct Philippine Constabulary where he had his initial exposure to law enforcement duties and anti-insurgency operations in various parts of the country. He served in distinguished positions of responsibility for a span of thirty one (31) years and received numerous awards, decorations, commendations and plaques of appreciation.He studied at the US Command and General Staff College, Fort Leavenworth, Kansas, USA and graduated as a member of Class 78. He was a member of Class20 of the National Defense College of the Philippines, Fort Bonifacio, Makati City in He also took up post graduate studies at the University of the Philippines and Ateneo de Manila University in 1975 and 1977 respectively. He taught Mathematics at the Philippine Academy as well.His various travels around the world and experiences with law enforcement have endowed him an insight into the different problems encountered by police officers in the field. One of these problem areas is on gambling where he conducted serious and extensive research that culminated in the writing of his initial copyrighted work, a book entitled “Anatomy of GAMBLING” copyrighted on Nov. 16, 1992 with copyright Reg.No A copy is hereto attached as Annex “B”.His personal contacts with gambling operators, professional gamblers as a founder of SAGA, Phils. and observations made at the different casinos of Las Vegas, Reno, Nevada; Atlantic City, New Jersey; Madrid, Spain; Panama; Germany and the our Philippine Amusement and Gaming Corporation (PAGCOR) have equipped him with invaluable knowledge and experiences on matters pertaining to gambling. He has accumulated and compiled all important matters about gambling, particularly the addiction aspect, which are now condensed in his Book with the hope that the readers share with others the lessons learned from the knowledge and experiences the author poured into it.On April 24, 1993 he retired from the government service with the Rank of Director in the Philippine National Police or an equivalent rank of Major General in the Armed Forces of the Philippines. He joined the private sector where he found time to undertake a more extensive research on gambling addiction to help prevent its unrestrained growth in the country. This dangerous disease now rocking no only the Philippine games and amusement industry but also the international world of gambling.
7Annex A: COMPLAINT AFFIDAVIT with ANNEXES 5. Because of his extensive exposure and personal observations in all types of gambling and number games, plaintiffs’ father has become a foremost authority in the Two-Number games in the likes of Jueteng, Last Two, Masiao and Ball Alai, where the winning combinations come form the results of basketball game endings, sweepstakes draw endings, Jai Alai games or simply drawing numbers from a container. Various media talk shows like ABS CBN’s Dong Puno Live and GMA’s then Probe Team as a principal guest, Broadsheets and tabloids published interviews and legislative forums where he acts as principal resource person attest to his unquestionable know how and expertise on this field.6. It was upon such expertise that he conceptualized and formulated the game “MASA LOTTO” which he eventually copyrighted on October 17, A copy of the covering Certificate of Registration No. A is hereto attached as Annex “C”.7. The salient features and mechanics of the said copyrighted “MASA LOTTO” Games which was contained and presented in a proposal to the Defendant PCSO dated. March 11, 1998 , a copy is hereto attached as Annex “D”, are:There are 1369 combinations where 1-37 numbers are pitted against another set of 1-37 numbers.Balls are being rotated inside a drawing machine, called the Megagem Drawing Machine, represent the 37 numbers. Two numbers shall be drawn one after the other. The first number drawn shall be returned to the machine. The 37 balls shall be rotated again for the drawing of the second number. The combination of the first number and second number drawn in that order shall be the winning combination.There will be two draws daily from Monday to Sunday. One will be in the morning for the previous day afternoon collection of bets. The other draw will be in the evening for the collection of bets in the morning.Bets from all over the country will be included in the draw which is centralized. The minimum bet will be at P1.00 and the maximum bet per combination will depend on the bettors. Since this a poor man’s lotto, it is expected that no big bets will be made by the bettors.If the combination of two numbers wins, the prize will be P per peso bet.The provincial, city and municipal offices of PCSO will pay all winning bets.Bet collectors will be given 10% of their collections, area supervisors at 3% and national and regional at 1% of the gross collections in their respective areas of operationsThe betting is not pari-mutuel system but a fixed price system where winning combination will be rewarded P per P1.00 bet.8. Plaintiffs’ late father had introduced innovations to the mechanics of the traditional “Jueteng” to make it consistent withlegally operated numbers game and not established lottery concepts as this game clearly deviates from the two basic principle ofa lottery or lotto of astronomical odds and pari-mutuel winning system, embodied in his copyrighted MASA LOTTO, thus, makingit legally eligible for issuance of copyright under Republic Act No
8Annex A: COMPLAINT AFFIDAVIT with ANNEXES 9. For purposes of eradicating the evils of illegal gambling like “Jueteng” and at the same time to increase government revenues, the plaintiffs late father had proposed the use of his work by or under the direction and control of the defendant or PAGCOR in partnership with him or his firm. The Supreme Court, in its decision in Kilosbayan, Inc. et. al. vs. Morato et. al., SCRA vol. 246, July 17, 1995 declared the legality of PCSO’s partnership with another group or individual. A copy of this ruling is hereto attached as Annex “E”.10. Sometime in July 5, 2004, EZ2 Lotto was introduced by defendant using and adopting the features and mechanics of the copyrighted “MASA LOTTO”, hence under date of August 23, 2005, plaintiffs’ counsel sent the defendant a letter calling its attention on the infringement of said Masa Lotto which had been previously proposed for use of the latter in its Lotto Draws>A copy of said letter is hereto attached as Annex”F”.11. In its reply to plaintiffs’ letter which is hereto attached as Annex”G”, defendant claimed that MASA LOTTO game is nothing new as it is patterned after established lottery concepts which have long been practiced and adopted. It further claimed that under RA 8293, only literary, scholarly, scientific and artistic works could be copyrighted which is self defeating as stated in the foregoing paragraphs. MASA Lotto is a product of extensive research, study and observation span of at least thirty (30) years ending in a grant of a copyright as testimonial to its being a new concept. While it is not true that it was simply patterned after established lottery concepts which was long practiced and applied, Defendant’s EZ2 clearly deviates from this concept and its very own charter therefore jeopardizing its mission.12. While also impliedly admitting use of the concept of “MASA LOTTO”, defendant cited Section 183 Chapter VIII of Part IV of RA 8923 as among the acts which do not constitute infringement of a copyright, “the use of a work by or under the direction or control of the government xxx where such use is in the public interest and ins compatible with fair use”.13. However, defendant did not go further to the succeeding Section which clearly states:“The provisions of this section shall be interpreted in such a way to allow the work to be used in the manner which does not conflict with the normal exploitation of the work and not unreasonably prejudice the holder’s right and legitimate interest.”14. Furthermore, defendant apparently lost sight of the “legal meaning” of “fair use”.“SEC. 185.Fair Use of a Copyright Work The fair use of a copyright work for criticism, comment, news reporting, teaching including multiple copies for classroom use, scholarship, research and similar purposes is not an infringement of a copyright. In determining whether the use made of a work in a particular case is fair use, the factors to be considered shall include:The purposes and character of use, including whether such use is of commercial nature or is for non-profit education purposes.”
9Annex A: COMPLAINT AFFIDAVIT with ANNEXES 15. Based on the above criteria, it is without doubt that the plaintiffs are entitled to the exclusive copyright and economic rights in their late father’s copyrighted MASA LOTTO game and the whole or part of said relief consist in restraining defendant from divesting them thereof in contravention of the express provisions of the copyright law and the commission of such act during litigation would work injustice to plaintiffs.16. The defendants is continuously using the copyrighted MASA LOTTO in its EZ2 Lottery Operation with not less than P5M as daily gross sales and Twenty (20.00%) Percent increase in profits declared by their outlets and great and irreparable injury would result to plaintiffs before the matter can be heard on notice, hence ex parte temporary restraining order should be served on defendant.17. Plaintiffs are ready, willing and able to file a bond executed in favor of defendant in an amount to be determined by the Court to the effect that plaintiffs will pay defendant all damages that it may sustain by reason of the injunction if the Court finally decides that plaintiffs are not entitled thereto.18. Because of the defendant’s above-cited acts, plaintiffs were constrained to retain the services of counsel for P100, and P3, per appearance which is only proper that they should be reimbursed by defendant.19. To serve as example to those similarly disposed and for the general good, defendant should be ordered to pay exemplary damages in the amount to be proved during the proceedings but should not be less than P1,000,P R A Y E RWHEREFORE, plaintiffs respectfully pray:1. That upon filing hereof a temporary restraining order be issued Ex Parte restraining defendants from committing the acts complained of and specifically from using, adopting and conducting the “EZ2 Lotto Game” which infringes the copyrighted MASA LOTTO.2. That after notice and hearing and pending trial of this case, a writ of preliminary injunction be issued enjoining defendant from suing the copyrighted MASA LOTTO through the EZ2 Lotto Game.3. That defendant be ordered to pay plaintiffs such actual damages, legal costs and other expenses they may have incurred due to the infringement as well as the profits defendants may have made due to such infringement in accordance with Section 216(b), Chapter XVII of RA 8293 at such amount as shall be proven in the course of the proceedings but should not be less than P 1,000,
10Annex A: COMPLAINT AFFIDAVIT with ANNEXES 4. That defendant likewise be ordered to comply with Sections 216(c), (d) and (e) of RA 8293 including the payment of moral and exemplary damages at such amount to be proven in during the proceedings but which should not be less than P 1,000,5. That defendant be ordered to pay plaintiffs P 100, acceptance fee, 20% of what will be recovered as Attorneys’ Fee and P 3,000 as per appearance.Plaintiffs pray for such other relief as may be deemed just and equitable in the premises.MARIO, de VILLA, GARRA & AssociatesCOUNSEL for PLAINTIFFSBy: ( S I G N E D )Jaime L. MARIO Jr.Quezon CityPTR No.: – – Q.C.IBP No.: – – Q.C.Roll No.: 18051VERIFICATION/ CERTIFICATIONI am representative of the heirs of the late Wilfredo R Reotutar, of legal ages, Filipino citizens, after being sworn to in accordance with law hereby depose and say:I have caused the preparation of the foregoing complaint and have read the allegations thereinThat the allegations therein are true and correct of my own knowledge.I hereby certify that I have not commenced any action or proceeding involving the same issues in the case against defendant in the Supreme Court, the Court of Appeals, or different divisions thereof or any tribunal agency. If I learn that a similar action or proceeding has been filed or pending before the Supreme Court, the Court of Appeals or different divisions thereof or any tribunal agency, I shall notify this Honorable Court within Five (5) days from the said notice.( S I G N E D )Anna Melissa Ma. J. Reotutar
11Annex A: COMPLAINT AFFIDAVIT with ANNEXES LIST of ANNEXES(The following Annexes were provided in the supplied Hard Copy of this Brief)A. SPA of Anna Melissa J. Reotutar signed and executed by all HeirsB. Certificate of Copyright Registration- Anatomy of GamblingC. Certificate of Copyright Registration- Masa LottoD. Game LiteratureE. Legality on Joint Venture with Private Individual or CorporationF. Copy of Proposal Letter to PCSOG. Copy of PCSO’s Reply
12Annex B: Copyright Registration & Literature Copyright Certificate No. A : MASA LOTTOGame Literature(Text Equivalent embodied in the Salient Features Section of the Complaint Affidavit)Our Masa Lotto PCSO’s EZ2 BallOperating Agency : PCSO~PE Joint Venture PCSONumbers : 1 to to 31Combination/s :Odds : 1: :961Draws : Centralised Nationwide Centralised NationwideNo of Draws : twice daily once dailyBetting System : 1 wins wins 400Minimum : P P 10.00Winning No/s : n1,n2:in correct order n1,n2:in correct orderWinning/Prizes : Fixed Prize System Fixed Prize System(nonpari-mutuel system) (nonpari-mutuel system)Drawing Machine : Megagem MegagemDrawing Machine Drawing Machine
13Annex C: Author’s Credential Retired General of the Philippine National Police Wilfredo R Reotutar is a member of Philippine Military Academy Class After graduating from the academy, he joined the now defunct Philippine Constabulary where he had his initial exposure to law-enforcement duties and anti-insurgency operations in various parts of the country. He served in distinguished positions of responsibility for a span of 31 years and received numerous awards, decorations, commendations and plaques of appreciation.He studied at the US Command and General Staff College, Fort Leavenworth, Kansas, USA and graduated as a member of Class He was a member of Class 20 of the National Defense College of the Philippines, Fort Bonifacio, Makati, Metro Manila in He also took up postgraduate courses at the University of the Philippines and Ateneo de Manila University in 1975 and In 1971, he taught mathematics at the Philippine Military Academy.In 1993, he chaired the Philippine National Police Committee which was tasked to study the proposed legalization of Jueteng, an illegal numbers game. The study brought into the forefront the serious problem of graft and corruption spawned by jueteng on the police and local government organizations due to the big protection money raised by the gambling syndicates. On October 25, 1993, the results of the study brought about major revamps of the affected police units in order to effectively carry out the anti-illegal gambling operations in the entire country. Additionally, a report was submitted to the Congress of the Philippines with the proposal to legalize jueteng and raise the penalties of would-be violators.During a Symposium held at the University of the Philippines Training Center on October 15-16, 1998 on the subject “Anti-Corruption Thrusts of the Estrada Administration” sponsored by the UP College of Public Administration, the author was invited as a resource speaker on the proposed Legalization of the Illegal Numbers Game of Jueteng, a form of local lottery. This problem is no longer a simple police concern but has grown into a national security threat because of the corruption aspect. Collusion among police officers, local government officials and the gambling lords to allow the operations of the illegal lottery is now the more serious predicament of the government. Jueteng has grown into a multibillion-peso gambling industry threatening the stability of the police and local government sectors of society because of the big protection money raised by the gambling syndicates to bribe police and local government officers. In the process, the gambling lords have become so powerful and so rich to be able to influence the assignments of police officers and even the results of elections. A resolution of this problem must be given top priority if the government wants to remain credible to its citizenry. The materials used during the symposium are now part of this book “Gambling Menace in the Philippines” with the hope that an honest-to-goodness approach, sincere effort and determined solution of the problem will be made by the concerned authorities.His various travels around the world and experiences with law-enforcement have endowed him an insight into the different problems encountered by police officers in the field. One of these problem areas is on gambling where he conducted a serious and extensive research that culminated in the writing of another book entitled “Anatomy of Gambling.” His personal contacts with gambling operators, professional gamblers and observations made at the different casinos of Las Vegas, Reno, Nevada and Atlantic City, New Jersey, USA; Madrid, Spain; Panama; Germany; and, the Philippine Amusement and Gaming Corporation (PAGCOR) have equipped him with invaluable knowledge and experiences on matters pertaining to gambling. He has accumulated and compiled all important matters about gambling, particularly the addiction aspect, which are now condensed in this book with the hope that the readers share with others the lessons learned from the knowledge and experiences the author poured into it.
14Annex D: Pertinent Motions & Pleadings Republic of the PhilippinesNational Capital Judicial RegionRegional Trail CourtQuezon City, Branch 90HEIRS OF THE LATE CIVIL CASE NoMAJ. GEN Wilfredo R. Reotutar, For: INFRINGEMENT withHEREIN REPRESENTED BY APPLICATION for INJUNCTIONAnna Melissa Ma. J. Reotutar and DAMAGESPlaintiffs,~versus~PHILIPPINE CHARITY SWEEPSTAKES OFFICE (PCSO)Defendant,x xREPLY to MOTION to DISMISSPlaintiffs, by the undersigned counsel, replying to the Motion to Dismiss, to this Honorable Court most respectfully state:The defendant’s position that it did not print, publish or sell copies of the “Masa Lotto” on its reliance on the Definition of Copyright in Black’s Law Dictionary as the right to copy a property right is a original work of authorship (including literary, musical, dramatic, choreographic, pictorial, graphic, sculptural and architectural works, motion pictures and other audio-visual works and sound recording), under the present trends of intellectual property rights coverage and protection is misplaced as being too narrow and limited in scope.The same applies more to old copyright law, Act No. 3134, otherwise known as the “Copyright Law of the Philippines’. The same however repealed by Presidential Decree No. 49 otherwise known as the “Decree on Intellectual Property” issued on November 14, 1972 because of the “tremendous strides in science and technology” making necessary the “updating of the Copyright Law to give fuller protection to intellectual property xxx.”
15Annex D: Pertinent Motions & Pleadings CIVIL CASE NoREPLY to MOTION to DISMISSPage 2Under the said PD 49, Copyright shall consist of the exclusive right to “Print, reprint, publish, copy, distribute, multiply, sell andmake photographs, phot engravings and pictorial illustrations of the works”.(Chapter II, Article I, Section V(A), PD49).This portion of the law is inconsistent with the afore-stated position of defendant and the definition of copyright in Black’s LawDictionary.However, the same chapter provides a broader coverage of copyright to include “To make any other use or disposition of workconsistent with the laws of the land” (Chapter II, Artticle I, Section V(D), PD49). This may include performing or exploiting the work,using it for profit like in the present case were MASA LOTTO is being performed, exploited and used by the defendant in its lotteryoperations.Defendant cited another definition of copyright by Moreno’s Law Dictionary ”as grant of exclusive privilege by the governmentfor the purpose of protecting and encouraging the product like a patent, the product of mental effort which secures to the author thefruit of his toil, or enables him to dispose of it with incidental rights.”The said definition appears more in consonance with the declared purpose of PD 49 to give fuller protection to the intellectualProperty and note merely limited to printing, publishing or selling copies of the works enumerated in the Black’s Law Dictionary, but alsoperforming the work either directly or by means of any device or process” as provided in Section of the Law on Copyright underRA 8293”.This may involve any other use or disposition of the work consistent with the law as the exploitation by defendant of themechanics of the copyrighted MASA LOTTO numbers game with its EZ2 lottery draws to generate funds for the government is much thesame way as a patented invention being practiced or performed and making that product.That is apparently why the Moreno’s Law Dictionary compares a copyright to patent which is granted special privilege by thegovernment for the purpose of protecting and encouraging the product of mental effort to secure to the author the fruit of his toil, orenables him to dispose of it with incidental rights.Defendant did not deny the existence of the plaintiff’s copyright over his work MASA LOTTO. What it alleges is that EZ2 LottoLottery is patterned after established concepts long practiced and adopted and did not infringe the copyrighted MASA LOTTO.
16Annex D: Pertinent Motions & Pleadings CIVIL CASE NoREPLY to MOTION to DISMISSPage 3Defendant likewise did not deny that it launched its EZ2 lotto lottery game after MASA LOTTO has been copyrighted and in fact, have been previously proposed by its author, the late Gen. Wilfredo Reotutar, to defendant for not making use of the mechanics and processes of the copyrighted numbers game with specifications and descriptions in the composition or pamphlet which is the work deposited with the National Library to enable defendant or anyone skilled in the art to practice it.If what the defendant says is true, it offered no explanation why it did not launch the EX2 lotto lottery earlier since it is supposed to be pattern after established lottery concepts?The truth of the matter is that MASA LOTTO carries innovations and improvements conceptualized and formulated by its author that are lacking in the traditional “jueteng”, thereby making it legally eligible for the issuance of copyright. Otherwise, if it did not deviate from the traditional “jueteng”, it could not have been issued a copyright from the government, and without the grant of exclusive privilege it would have been illegal for the defendant to practice or perform it.Obviously indeed as it claims, the defendant did not copy or reproduce the subject written composition of the late Gen. Wilfredo Reotutar. It however operated or practiced the description and specifications of the MASA Lotto numbers game conceptualized in the said composition. It is naturally and logically included in the copyright granted for his work. Hence, the infringement by the defendant when it performed and practiced the copyrighted work without license or authority from the owner thereof.Defendant’s claim that the new concept in the MASA LOTTO can not be copyrighted under section 175 of R.A is devoid of merit. What are covered in the said section of the law that can not be copyrighted are mere ideas, etc., or mere data as such, not those that are workable like the MASA LOTTO as proven by the fact that defendant is performing, practicing or working it right now in its Lotto Lottery Operations. Hence, it is not just a mere idea, or mere data as such, that is not workable.The reference to the letter of March 11, 1998 of Gen. Reotutar that he has copyrighted the game ‘jueteng’ and renamed it into “MASA LOTTO” states the truth because of the copyrighted work is basically similar to the mechanics of ‘jueteng’. It, however incorporates significant innovations and improvements which remove it from the illegal betting game that is until today. With such innovations and improvements that qualified it for grant of a copyright, it has become legal with such government exclusive privilege as defined in Moreno’s Law Library, it can no longer be called ‘jueteng” and is only proper that it be identified by another name as did the late Gen. Reotutar in naming it “MASA LOTTO”.
17Annex D: Pertinent Motions & Pleadings CIVIL CASE NoREPLY to MOTION to DISMISSPage 4In granting legal protection to a copyright, RA 8923 in Chapter VII on Infringement, provides in Section thereof:“The copy of work or other subject matter annexed thereto is true copy thereof, shall be admitted in evidence in any proceedings for an offense under this Chapter and shall be prima facie proof of the matters thereto stated until the contrary is proved and the court before which and affidavit is produced shall assume that the affidavit was made by or on behalf the owner of the copyright”.It is therefore without doubt that the plaintiff’s clear and indubitable rights exist in their subsisting copyright and the same were and are continuously being violated and infringed by defendant. Clearly, the complaint states a cause of action.On the other hand, infilling its Motion to Dismiss, defendant is deemed to have admitted the material allegation of the complaint.WHEREFORE, plaintiffs most respectfully pray that the reliefs sought in their complaint be granted and so ordered by this Honorable Court.Quezon City, January 23, 2006.MARIO, de VILLA, GARRA & AssociatesCOUNSEL for PLAINTIFFSJaime L. MARIO Jr.PTR No.: – – Q.C.IBP No.: – – Q.C.Roll No.: 18051Copy Furnished:Mario R. PilaspilasCounsel for the DefendantGovernment Corporate Counsel3/F MWSS Bldg., Katipunan Rd. Balara, Q.C.EXPLANATIONThis manifestation was filed, and a copy thereof furnished counsel for defendant for lack of personnel to take personalservice thereof.
18Annex E: Court Order on Motion to Dismiss Republic of the PhilippinesNational Capital Judicial RegionRegional Trail CourtQuezon City, Branch 90HEIRS OF THE LATE CIVIL CASE NoMAJ. GEN Wilfredo R. Reotutar, For: INFRINGEMENT withHEREIN REPRESENTED BY APPLICATION for INJUNCTIONAnna Melissa Ma. J. Reotutar and DAMAGESPlaintiffs,~versus~PHILIPPINE CHARITY SWEEPSTAKES OFFICE (PCSO)Defendant,x xO R D E RThis refers to defendant’s Motion to Dismiss (see Records. Pp ) vis-à-vis plaintiffs’ Reply and Supplemental Reply hereto which are in the nature of plaintiffs’ Opposition and Supplemental Opposition in relation to the defendant’s Reply and all other relevant pleadings.After carefully going over the pleadings in relation to the pertinent portions of the records, this Court is of the considered and humble view that the arguments embodied in the plaintiffs’ aforecited Reply (see Records, pp ) and Supplemental Reply (see Records, pp ) which will no longer be quoted herein (Television and Production Exponents, Inc. vs. Hon. Presiding Judge RTC of Quezon City, Br.90 et al, C.A.-G.R. No. SP67719 [November 29, 2001] see also 246 Corporation vs. Hon. Reynaldo B. Daway, et. al. G.R. No , 416SCRA 315) are impressed with merit.IN VIEW OF THE FOREGOING, the aforecited Motion to Dismiss is DENIED for lack of merit.SO ORDERED.Quezon City, July 20, 2006(SIGNED)REYNALDO B. DAWAYPresiding Judge
19Annex F: Court Order on Settlement Republic of the PhilippinesNational Capital Judicial RegionRegional Trail CourtQuezon City, Branch 90HEIRS OF THE LATE CIVIL CASE NoMAJ. GEN Wilfredo R. Reotutar, For: INFRINGEMENT withHEREIN REPRESENTED BY APPLICATION for INJUNCTIONAnna Melissa Ma. J. Reotutar and DAMAGESPlaintiffs,~versus~PHILIPPINE CHARITY SWEEPSTAKES OFFICE (PCSO)Defendant,x xO R D E RIn today’s hearing, Atty. Gregorio David and Atty. Mario Pilaspilas appeared. The pending Motion to Dismiss to which there were certain related pleadings filed. As prayed for by Atty. David, the plaintiffs are given ten (10) days from today within which to file their rejoinder and the hearing on the Motion to Dismiss is reset to May 29, 2006 at 8:30 a.m. This Court earlier stressed that it would be good if the counsels could assist their respective clients even at this stage of the proceedings to talk about possible settlement for no less than the Honorable Supreme Court encourages settlement in civil cases as there is prospect for settlement even during the preliminary conference, even during the mediation and even pre-trial before this Court.Both counsels said that they will be sitting down together to find ways and means for a possible settlement in this case.SO ORDERED.Given in open court this 17th day of March, 2006 in Quezon City.(SIGNED)REYNALDO B. DAWAYPresiding Judge
20Annex G: Letter to PCSO Directors (duly received) Heirs of Gen. Wilfredo R. ReotutarMailing Add: Unit 1812 Swire Elan Suites, No. 49 Annapolis St. G.H. S.J. Phils.November 7, 2006Hon. Sergio O. ValenciaChairman of the Board of DirectorsPhilippine Charity Sweepstakes Office (PCSO)PCSO ComplexE Rodriguez Ave., Quezon CityRe: Heirs of Gen. Wilfredo R. Reotutar vs. PCSOCivil Case No. QRTC- Quezon CityDear Hon Valencia:This pertains to the case which we filed on December 1, 2005 against your office for Infringement with Application for Injunction and Damages based on the Certificate of Copyright Registration issued to our father, Wilfredo R. Reotutar.Instead of filing an answer, a Motion to Dismiss was filed by your lawyers which was subsequently denied by the court, copy of court order is hereto attached as Annex “A”.Prior to the issuance of resolution on your motion, Court strongly suggested that the parties find ways to settle the case out of court as evidenced by an ORDER it issued on March 17, 2006 and the transcript of the hearing on such date, copy is hereto attached as Annex “B”.Again, in the preliminary conference of this case, the Clerk of Court suggested that we settle the case out of court. As a matter of fact, this case was referred to the Mediation Office for the same purpose. After which, if no settlement is reached, will again be referred back to them.
21Annex G: Letter to PCSO Directors Letter to Hon. S.O. ValenciaNovember 7, 2006Page 2During the last mediation hearing on October 27, 2006 your representative, while present, informed us that she has no authority to negotiate with us but suggested that we write your good selves about our claim to put finality on the possibility of settlement. Hence, this letter.When we decided to file this case, we were not quit certain about our chance of getting the final decision in our favor. Although your mindsets may find losing this case highly improbable, all that changed as evidenced by the abovementioned denial of your Motion to Dismiss. Probability of winning the case somehow increased, and the court may end up awarding us a settlement more than what we have hoped for.Honestly, we don’t want this to happen as our late father conceptualized the “Masa Lotto” a.k.a. “EZ2 Ball” under your operation, to aid in the fund raising campaign of the government, but with “appropriate consideration”. Most Lotto outlets, privateers like us heirs, declared twenty (20.00%) percent increase in revenues upon the introduction and addition of EZ2 Ball. If this constitutes fair play, we rest our case. What we have at the backs of our minds is a reasonable amount of financial settlement which the institution (PCSO) could very well afford considering its charity-oriented existence.Other attachments to this letter are the various documents of this case for your information and guidance as well as the computation of our claim for damages as per Republic Act No which may be the basis of a compromise agreement between us on or before the November 16, the date set by the court for its final mediation.Thank you and more power to you all.Sincerely,For and in behalf of all rightful heirs( S I G N E D )Anna Melissa J. ReotutarCopy furnished:Hon. Rosario C. Uriarte, Vice-Chairman Hon. Teresita T. Gonzalez, MemberHon. Manuel L. Morato, Member Atty. Jaime Mario, Counsel for PlaintiffHon. Strike B. Revilla, Member Atty. Gregorio David, Counsel for PlaintiffHon Victor A. Domingo, Member Atty. Mario Pilaspilas, Counsel for PCSO
22Annex H: Operational Glitch PCSO's Violation of Republic Act No. 1169States that: ONLY 55% of the Gross Collectionof their Lottery shall be strictly alloted toWinnings / PrizesIn a Fixed Price System, PCSO will not be able todeliberately limit the Total Amount of Winnings,unlike in the Pari-Mutuel System as they have topay every bettor P 400 for very P betwho will hit the 2-digit winning combination. Ifthe Total Number of Bettors who will win exceed1.38%, which is most likely as the odds are notastronomical and in fact very small, then PCSOwill have to go over and beyond what is allowedfor in their charter, to service the winningbettors. Unless… they apply a special programwhich will set a threshold limiting the amount ofbets per combination. This however, should bedisclosed to the betting public, undoing so isdeemed cheating!!!Threshold Chart
23Annex I: Computation of Monetary Damages Computation of Damages as per Republic Act No. 1169Gross Daily collection of Bets was based on PCSO's disclosure in Mediadated 23.August.2005 editon of the Philippine StarDaily collection (in Pesos) of Bets officially started July 5, 2004In case of LEGAL CONVEYANCE:GROSS DAILY COLLECTION P ,000,000.00Months of Operation (since 5Jul04)Equivalent No. of Days of OperationGross Collection to date 5,460,000,000.005% R.F as per RA ,000,000.00Add: 30% Legal Fees ,900,000.00Total Damages to date P ,900,000.00In case of Infringement & Economic Violation:GROSS DAILY COLLECTION P ,000,000.00Months of OperationEquivalent No. of Days of OperationNet Profits (Estimated) ,000,000.00Add: 30% Legal Fees ,800,000.00Total Damages to date P ,800,000.00
24Annex J: Death Certificate Request made to NSO, awaiting authentication copy.
25Annex K: Related Media Disclosures It's not just the win by WALTER VILLA PLAY MAGAZINE EDITION: FEB. 2006Arnel Casas’s shift takes longer than usual. The Philippine Charity and Sweepstakes Office (PCSO) Data Control Center, which he heads,is currently processing the total lotto ticket sales for the day. On an average, their computers handle daily Php30 million to Php40million total sales. But since November, the pot prize had been steadily rising, on its way to being possibly the sixth biggest pot in its11-year history. Sales had at one point climbed by 400%.The assistant department manager for Central Operations is fussy but happy. “The past year can easily be PCSO’s banner year – andwhat a great way to start the new year,” he beams. Casas is referring to 2005 when PCSO exceeded its conservative projection ofPhp12.3 billion gross sales by a hefty Php2 billion.It is EZ2, PCSO’s newest number game, which has contributed a big chunk of the past year’s earnings. Introduced in July 2004, EZ2 isreminiscent of jueteng, the illegal two-number game. In just 27 days of operation, it generated Php76 million in total earnings. Morethan giving punters a better alternative against jueteng and masiao, EZ2 was quickly accepted even with new patrons from Visayas andMindanao.Related Articles:Philippine Lottery Predicts Higher SalesMANILA, Philippines (April 8, 2005) -- The Philippine Charity Sweepstakes Office (PCSO) reportedly expects sales to grow by at least 20percent this year from its lottery operations in Visayas and Mindanao...http://www.lotteryinsider.com/news/2005/april/mon11.htm#02PALACE VOWS TO COMPLETELY STOP ‘JUETENG BY SEPT. 15 By AUREA CALICA for The Philippine Star, 23.Aug.2005 Edition para. 18President Arroyo ordered the total eradication of the illegal numbers game ‘jueteng’ by Sept. 15 and warned officials of government willdeal with operators using the “full force of the law”…PCSO chairman Valencia said the government’s alternative to ‘jueteng, EZ2 Ball, brings in P5 Million a day and could provide assistanceto those who stand to lose their livelihood when “jueteng’ operators stop their activities.
26Annex K: Related Media Disclosures PCSO studying a legit version of jueteng Pilot tests being readied by government By BEN R. ROSARIOThe Philippine Charity Sweepstakes Office (PCSO) is ready to pilot test its ‘jueteng’ operations and is willing to fill the venture’s jobopenings with people who have been rendered jobless as a result of the on-going anti-jueteng drive of the government.This was the response given by PCSO Chairman Sergio Valencia to inquiries made by congressmen on whether or not the state-runlottery firm is willing to operate jueteng lotteries.Appearing before a public hearing conducted by the House of Representatives Committee on Public Order and Security on Wednesday,Valencia said the PCSO is currently conducting a study on the legality and the feasibility of operating jueteng, saying that it is nowawaiting the green light to stage pilot testing from Secretary Dinky Soliman of the Department of Social Welfare and Development.Neophyte Rep. Rodolfo Antonino (Kampi, Nueva Ecija) said the PCSO charter actually allows it to conduct any type of lottery system,including jueteng."The EZ2 lottery that PCSO has been conducting is a take off from jueteng. The only difference lies in the fact that jueteng can acceptbets as small as R1 and sends bet takers right to the doorsteps of the bettors’ houses,’’ Antonino said.Reacting to Valencia’s revelation, Antonino, together with Rep. Joey Salceda (Kampi, Albay), immediately offered their provinces, whichhave been identified as jueteng territories, to be a pilot test areas for the PCSO-run jueteng lottery, tentatively called ‘Loterya ngBayan.’Valencia disclosed that the PCSO intends to recruit for the Loterya jueteng bet collectors and supervisors who have been displacedfollowing the anti-jueteng campaign launched recently by the Philippine National Police.Abra Rep. Luis Bersamin, an anti-jueteng advocate, said he believes the PCSO can indeed conduct lotteries similar to jueteng.However, he urged PCSO to guarantee transparency in its operations.In an interview, Conrado Zabella, PCSO assistant manager for online lottery, revealed that the state firm is ready to operate the‘Loterya’which can be considered as the legitimate version of jueteng.
27Annex K: Related Media Disclosures "The operation of Loterya ng Bayan had been approved by the previous PCSO board. The current board will only have to confirm itsapproval for us to start pilot testing of the project,’’ Zabella explained.According to Zabella, proceeds of the Loterya operations will be distributed to the local government units of host cities or municipalitiesand the province to finance their charity projects. The PCSO will also get a share of the profit."I do not think there is still a need to pass a law that will legalize jueteng. Under the PCSO charter, it can operate and manage lotteriesas long as its conduct is transparent and proceeds will benefit charity,’’ Zabella explained.The PCSO official revealed that trial for pilot areas will take a long period in order that the success of actual loterya operations may beguaranteed."We will be running the tests at no risk to government money,’’ Zabella added.The psyche of the gambler First posted 05:42am (Mla time) June 05, Inquirer News ServiceEditor's Note: Published on page A16 of the June 5, 2005 issue of the Philippine Daily InquirerGAMBLING probably dates back to biblical times. For thousands of years, people of all classes, ages and professions have been drawn togames and gambling.Aside from the fun, thrill and excitement they give, hundreds of millions of people around the world participate in games of chance inone form or another with one thing in mind-to get rich quick or hit the proverbial jackpot.In the Philippines, gambling has become a multi-billion-peso industry that even the government has dipped its hands into it. ThePhilippine Amusement and Gaming Corp. maintains several casinos in key cities and major urban centers across the country while thePhilippine Charity Sweepstakes Office operates sweepstakes and online lotto draws.The government also allows horse racing at the Sta. Ana and San Lazaro racetracks under the supervision of the Philippine RacingCommission.Ret. Gen. Wilfredo R. Reotutar, author of the book "Anatomy of Gambling," said the existence of these state gambling institutions hasnot only abetted but also worsened the gambling habits of Filipinos. These gambling institutions have produced millions of gamblingaddicts, he said.
28Annex K: Related Media Disclosures But for the masses who can't afford to go to the state-run casinos or play the lotto, there are several forms of gambling, albeit illegal,where they can bet a few centavos.These include jueteng, the most popular numbers game, last two and masiao; card games such as monte, sakla, lucky nine, Russianpoker and pusoy dos; mahjong, horse racing, cara y cruz and hi-lo.Reotutar had estimated that about P100 million are wagered daily in all forms of illegal gambling in the entire country.What attracts people to gambling? Theories abound and not even the experts know for certain. But even the most casual gambler canattest to the thrill that accompanies every wager.PCSO’s EZ-2 Ball replaces jueteng–PNP By ANTHONY VARGAS, The Manila Times ReporterIllegal gambling operators are turning to the state-run numbers game for legal profits, and the police don’t like it.The Philippine National Police said on Wednesday that it has initiated talks with the Philippine Charity Sweepstake Office (PCSO) for thecancellation of the EZ-2 Ball operation. The EZ-2 Ball is one of the many games of chance or lottery being operated by the PCSO andhas been widely patronized by many Filipinos especially in the rural areas.PNP officials in a press briefing in Camp Crame said that displaced jueteng operators have been using the EZ-2 Ball as their alternativemeans of continuing their "illegal" activity. Chief Supt. Florante Baguio, chief of the Anti-Illegal Gambling Task Force, said displacedjueteng operators are making a comeback, using legal gambling operations sanctioned by the PCSO. "Organized jueteng operation inLuzon has been contained. But jueteng operators have shifted their operation to legal gambling," Baguio told reporters in CampCrame. The PNP spokesman, Chief Supt. Leopoldo Bataoil, said the police leadership will not tolerate any attempt by jueteng operatorsto get back in their old business."The PNP chief, Director General Arturo Lomibao, will be writing the higher authorities [PCSO] to stop the operation of the EZ-2 Ball,"Bataoil said in the same press briefing. Baguio explained that former bet collectors for jueteng continue making rounds in their areascollecting bets using the EZ-2 Ball for their own activities."They continue to collect bets using the EZ-2 Ball. They are also coordinating with some lotto outlets were they will remit theircollections," Baguio said. He said that EZ-2 Ball operates in the same manner as jueteng in which a set of winning combination is drawnfrom a pool of balls numbering from 1 to 31.The bet in the PCSO-operated EZ-2 Ball is pegged a P10 for each combination, while those being run by displaced jueteng operators isusually P12 each combination.