Question

Consider the following scenario:

Paula is a renowned fashion designer in the Philippines. She recently filed a case against a local clothing manufacturer for copyright infringement. The case is currently pending before the court. However, during the pendency of the case, a new law was enacted which provides stricter penalties for copyright infringement.

Based on the principle of retroactivity of laws under Article 4 of the Civil Code and the vested rights principle, discuss the following:

1. What is the general rule concerning the retroactive effect of laws?
2. Can Paula rely on the new law in her case against the clothing manufacturer? Explain.
3. Is there any exception to the retroactive effect of laws? If so, how does it apply in this scenario?
4. How does the vested rights principle come into play in this situation?