In a landmark decision, the Supreme Court clarified that theft can extend beyond physical objects to include services and business, particularly in the context of telecommunications. This means that unauthorized use of telecommunication services, like illegally routing international calls, can be prosecuted as theft. The Court emphasized the importance of adapting the definition of ‘property’ to include modern technological advancements, safeguarding businesses from unlawful exploitation of their services and infrastructure.

Dialing for Dollars: Can Illegally Routed Phone Calls Constitute Theft?

This case revolves around Luis Marcos P. Laurel, who was accused of theft for allegedly engaging in International Simple Resale (ISR), a method of rerouting international calls without the consent of Philippine Long Distance Telephone Company (PLDT). The Amended Information charged Laurel with stealing PLDT’s international long distance calls and business, causing substantial financial damage. Laurel sought to quash the information, arguing that international long distance calls and the business of providing telecommunication services are not ‘personal properties’ subject to theft under Article 308 of the Revised Penal Code. The legal question before the Supreme Court was whether such intangible assets could indeed be the object of theft.

The Supreme Court initially ruled in favor of Laurel, stating that international long distance calls were not personal property as defined under the Revised Penal Code. However, PLDT filed a Motion for Reconsideration, asserting that the Revised Penal Code should be interpreted in conjunction with the Civil Code’s definition of personal property. PLDT argued that anything not classified as real property could be considered personal property and, therefore, subject to theft if capable of appropriation. The Office of the Solicitor General (OSG) supported PLDT’s stance, emphasizing that intangible properties recognized in prior cases should also be considered under the Revised Penal Code.

Building on this principle, the Supreme Court reconsidered its earlier decision. The Court emphasized that the definition of ‘personal property’ should be interpreted broadly, in line with both jurisprudence and the Civil Code. The Court referenced previous rulings, such as United States v. Genato and United States v. Carlos, which recognized intangible properties like gas and electricity as personal properties capable of being stolen. These cases supported the idea that the theft provision in the Revised Penal Code was intended to be all-encompassing, adapting to unforeseen scenarios.

The Revised Penal Code defines theft as the taking of personal property of another without their consent, with intent to gain, and without violence or intimidation. Key to the crime of theft is the concept of “taking” which, in the context of intangible property, requires an act of appropriation, depriving the lawful owner of the benefits derived from that property. The Court clarified that “taking” does not necessarily require physically carrying away the property but includes any act that transfers possession or controls the destination of the property, thereby depriving the owner of their rights.

In analyzing the case, the Court distinguished between the actual telephone calls and the business of providing telecommunication services. While PLDT does not own the content of the international phone calls, it does own the service and the infrastructure that facilitates these calls. The act of engaging in ISR operations, which involves illegally connecting equipment to PLDT’s telephone system to reroute international calls, constitutes a “subtraction” from PLDT’s business and service, therefore qualifying as theft.

The Court further supported its reasoning by referencing Section 2 of Act No. 3952, the Bulk Sales Law, which recognizes business as an object of appropriation. Citing the case of Strochecker v. Ramirez, the Supreme Court noted that interest in a business is considered personal property if it can be appropriated and is not included in the list of real properties under the Civil Code. Business, though not explicitly listed as personal property, can be appropriated, and therefore falls under the definition of personal property. This solidified the position that PLDT’s telecommunication business can indeed be the subject of theft.

Consequently, the Supreme Court directed the trial court to amend the Amended Information. The amendment was aimed at clarifying that the stolen property was not merely the international long distance calls but PLDT’s telecommunication services and business. This correction was deemed necessary to accurately reflect the nature of the offense and to ensure that the accused was fully aware of the charges against him, in accordance with constitutional rights.

FAQs

What was the key issue in this case?	The key issue was whether international long distance calls and the business of providing telecommunication services could be considered personal property subject to theft under Article 308 of the Revised Penal Code.
What is International Simple Resale (ISR)?	ISR is a method of routing international calls using lines and equipment connected directly to the local exchange facilities of the destination country, often done without the consent of the telecommunication company providing the service.
What does “taking” mean in the context of theft of services?	“Taking” refers to any act intended to transfer possession or control the destination of the property, effectively depriving the owner of their rights, and does not necessarily require physical asportation.
Are intangible properties subject to theft?	Yes, intangible properties that can be appropriated, such as electricity, gas, and telecommunication services, can be the subject of theft under the Revised Penal Code.
What is the basis for considering business as personal property?	The Court relied on Section 2 of the Bulk Sales Law (Act No. 3952) and jurisprudence that considers business and interests in business as personal property capable of appropriation.
Why was the Amended Information required to be amended?	The Amended Information needed amendment to clarify that the stolen property was the telecommunication services and business of PLDT, not just the international long distance calls themselves.
What is the significance of this ruling?	The ruling extends the definition of property subject to theft to include telecommunication services and businesses, providing greater protection against unlawful exploitation of these services.
Does this case impact the prosecution of similar crimes?	Yes, this case sets a precedent for prosecuting unauthorized use and resale of telecommunication services as theft, providing a clearer legal basis for such actions.

This landmark ruling underscores the judiciary’s adaptability to modern challenges, ensuring legal protections keep pace with technological advancements. By recognizing telecommunication services and businesses as subject to theft, the Supreme Court has fortified the rights of service providers and broadened the scope of property law in the Philippines.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: LUIS MARCOS P. LAUREL vs. HON. ZEUS C. ABROGAR, G.R. No. 155076, January 13, 2009