OPTICAL MEDIA LAW

Section 5.

The authority of the OMB shall cover the entire territory of the Republic of the Philippines including the economic zones as defined in this Act and in Republic Act No. 7916.

a. Requirements/Prescriptions

i. The entire territory of the Republic of the Philippines including the economic zones as defined in this Act will be covered by the authority of the Optical Media Board.

b. Statutory Construction

i. 1987 Philippine Constitution Article II. Section 24.

The state recognizes the vital role of communication in nation-building.

Explanation:

The section stated from the Philippine Constitution explains that the state sees the important role of communication in nation-building.

Section 6.

The Board. — The OMB shall be composed of four (4) ex officio members and five (5) regular members to be appointed by the President. The Chairperson shall be appointed by the President from among the five (5) regular members.

IV. PENAL PROVISIONS

Section 19.

Offenses and Penalties.

(a) Imprisonment of at least three (3) years but not more than six (6) years, and a fine of not less than Five hundred thousand pesos (Php 500,000.00) but not exceeding One million five hundred thousand pesos (Php 1,500,000.00), at the discretion of the Court, shall be imposed on any person, natural or juridical, who shall:

(1) Engage in the importation, exportation, acquisition, sale or distribution of, or possess or operate manufacturing equipment, parts and accessories without the necessary licenses from the OMB;

(2) Engage in the mastering, manufacture, replication, importation or exportation of optical media without the necessary licenses from the OMB;

Section 20.

Determination of Penalties. — In determining the number of years of imprisonment, or amount of fine to be imposed, the Court shall consider the size of the operations of the offender, the value of the articles involved in the violation, and the period of violation. In imposing administrative penalties, the OMB shall likewise consider the said circumstances.

Section 21.

Persons Liable. — If the offender is an alien, the person shall immediately be deported after serving his sentence, and shall, thereafter, be refused entry into the country.

(g) Manufacturing Material — any material such as, but not limited to, optical grade polycarbonate or polycarbonate substitutes with physical properties suitable for the manufacture of optical media;

(h) Mastering — the act or business of producing a stamper made of glass, metal or other material, intended for the manufacture of optical media;

(i) Optical Media — a storage medium or device in which information, including sounds and/or images, or software code, has been stored, either by mastering and/or replication, which may be accessed and read using a lens scanning mechanism employing a high intensity light source such as a laser or any such other means as may be developed in the future

(j) OMB — the Optical Media Board;

(k) Replication — the process of manufacturing optical media by reproducing or generating copies of the stamper in an injection molding machine or other forms of replicating equipment; and

(l) Source Identification Code or SID Code — a system of codes to identify the source of all optical media mastered, manufactured or replicated by any establishment or entity.

I. General Provision

Section 4.

Reorganization. — To implement the policies and attain the objectives enunciated in this Act, the Videogram Regulatory Board (VRB) created under Presidential Decree No. 1987 is hereby reorganized into the Optical Media Board (OMB).

The OMB shall be placed under the Office of the President (OP) and shall have its principal offices in Metropolitan Manila.

a. Requirements/Prescriptions

i. The Optical Media Board (OMB) shall be placed under the Office of the President (OP).

ii. The Optical Media Board (OMB) shall have its principal offices in Metropolitan Manila.

b. Statutory Constructions

i. 1987 Philippine Constitution Article II. Section 24.

The state recognizes the vital role of communication in nation-building.

Explanation:

The section stated from the Philippine Constitution explains that the state sees the important role of communication in nation-building.

ii. 1987 Philippine Constitution Article III. Section 3.

The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged.

Explanation:

The section stated from the Philippine Constitution explains that all people coming from different occupational groups for purposes not contrary to law shall not be abridged.

Section 1.

Short Title. — This Act shall be known as the Optical Media Act of 2003.

Section 2.

Policy. — It is hereby declared to be the policy of the State to ensure the protection and promotion of intellectual property rights. The unregulated mastering, manufacture, replication, importation and exportation of optical media in all forms is inimical to economic growth and public interest. Towards this end, the State shall institute the means to regulate the manufacture, mastering, replication, importation and exportation of optical media.

a. Requirements/Prescriptions

i. The State will ensure the protection of intellectual property rights.

ii. The State will ensure the promotion of intellectual property rights.

iii. The State shall institute the means to regulate the manufacture, mastering, replication, importation and exportation of optical media.

b. Statutory Constructions

i. 1987 Philippine Constitution Article II. Section 24.

The state recognizes the vital role of communication in nation-building.

Explanation:

The section stated from the Philippine Constitution explains that the state sees the important role of communication in nation-building.

Definition of terms

Section 8.

Compensation. — The Chairperson shall receive a salary and allowances based on current approved standardized government compensation.

The Vice-Chairperson and members of the Board shall receive honoraria and allowances based on existing government accounting and auditing rules and regulations.

a. Requirements/Prescriptions

i. The Chairperson shall receive a salary based on current approved standardized government compensation.

ii. The Chairperson shall receive allowances based on current approved standardized government compensation.

iii. The Vice-Chairperson and members of the Board shall receive honoraria based on existing government accounting and auditing rules and regulations.

b. Statutory Construction

i. 1987 Philippine Constitution Article II. Section 24.

The state recognizes the vital role of communication in nation-building.

Explanation:

The section stated from the Philippine Constitution explains that the state sees the important role of communication in nation-building.

a. Requirements/Prescriptions

i. The OMB shall be composed of four (4) ex official members to be appointed by the President.

ii. The OMB shall be composed of five (5) regular members to be appointed by the President.

iii. The Chairperson shall be appointed by the President from among the five (5) regular members.

b. Statutory Construction

i. 1987 Philippine Constitution Article II. Section 24.

The state recognizes the vital role of communication and in nation-building.

Explanation:

The section stated from the Philippine Constitution explains that the state sees the important role of communication in nation-building.

ii. 1987 Philippine Constitution Article III. Section 3.

The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged.

Explanation:

The section stated from the Philippine Constitution explains that all people coming from different occupational groups for purposes not contrary to law shall not be abridged.

Section 7.

Qualifications. — The regular members of the Board shall be Filipino citizens, at least twenty-one (21) years old, of good moral character and standing in the community, and with proven competence in the industry they represent: Provided, That the Chairperson shall be at least thirty-five (35) years old, of known probity and managerial and administrative competence: Provided, finally, That at least two (2) members of the Board must be members of the Philippine Bar.

Section 3.

(a) Economic Zone — the Special Economic Zones, Industrial Estates, Export Processing Zones and Free Trade Zones as defined in Republic Act No. 7916 or the EZA Law including the Clark Special Economic Zone, the Cagayan Special Economic Zone, the Zamboanga City Special Economic Zone, the Subic Bay Freeport and other economic zones now in existence in the Philippines or as may be established in the future;

(b) IP Code — Republic Act No. 8293 also known as the Intellectual Property Code of the Philippines;

(c) License — the authority granted by the Optical Media Board (OMB) to establishments or entities registered with the OMB to engage in the business of mastering, manufacture, replication, importation or exportation of optical media;

(d) Magnetic Media — a storage medium or device characterized by a base, usually plastic, coated with ferric oxide powder, in which visual and/or aural information, or software code, may be recorded or stored, including, but not limited to, magnetic tape, cassettes, video tape, diskettes, and floppy discs;

(e) Manufacture — the actor business of producing optical media or devices containing sounds and/or images, or software code, including any work protected in Part IV of the IP Code, by mastering and/or replication.

(f) Manufacturing Equipment — any and all equipment, machine or device, now known or to be known in the future, intended or designed for the production or manufacture, by mastering and/or replication of optical media, optical media masters, or production parts thereof, including but not limited to, those which shall be listed in the Implementing Rules and Regulations (IRR) of this Act or as prescribed by the OMB.

a. Requirements/Prescriptions

i. The regular members of the Board shall be Filipino citizens.

ii. The regular members of the Board shall be at least twenty-one (21) years old.

iii. The regular members of the Board shall be of good moral character and standing in the community.

iv. The regular members of the Board shall be with proven competence in the industry they represent.

b. Statutory Construction

i. 1987 Philippine Constitution Article II. Section 24.

The state recognizes the vital role of communication and in nation-building.

Explanation:

The section stated from the Philippine Constitution explains that the state sees the important role of communication in nation-building.

SUMMARY/RECOMMENDATION/CONCLUSION

The Republic Act 9239 also known as the Optical Media Act of 2003 mainly focuses on the penalties regarding the unregulated mastering,

manufacture,replication, importation and exportation of Optical Media in all forms which inimical to economic growth and public interest.

It was declared to ensure the protection and promotion of intellectual property rights.

Intellectual property rights are legally recognized exclusive rights to creations of the mind. Under intellectual property laws, owners are granted

certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words,

phrases, symbols,and designs. Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights,

trade dress, and in some jurisdictions trade secrets.

The Optical Media Act punishes piracy of intellectual properties through illegal manufacture, replication and sale of "any recordable medium

or device and which information, including sounds or images, fixed or unfixed in a combination or software code is stored."

Software piracy is a violation of the Copyright Provisions of the Intellectual Property Code of the Philippines (RA 8293) and the

Optical Media Act(RA 9239). The use of pirated software should be stopped because not only does it pose risk to business in terms of viruses and malware that may destroy any data vital to their business operation. It also harms the Philippine economy in terms of revenue losses for the industry, lower tax collections for the government

and reduced job opportunities for our fellow Filipinos. These are only few reasons to support the Optical Media Act.

By establishing an integrated and coordinated effort to implement the Optical Media Act, the country can counteract the negative effects of software piracy on the local IT industry and the economy.

Section 12

The OMB Secretariat. — The OMB shall have a Secretariat, herein created, headed by an Executive Director who shall assist the Chairperson/CEO in the day-to-day operations of the OMB.

The Executive Director shall be appointed by the Chairperson subject to the approval of the Board. His term shall be coterminous with the CEO.

a. Requirements/Prescriptions

i. The Optical Media Board (OMB) shall have a Secretariat, herein created, headed by an Executive Director.

ii. The Executive Director shall assist the Chairperson/CEO in the day-to-day operations of the Optical Media Board (OMB).

b. Statutory Construction

i. 1987 Philippine Constitution Article II. Section 24.

The state recognizes the vital role of communication in nation-building.

Explanation:

The section stated from the Philippine Constitution explains that the state sees the important role of communication in nation-building.

INTRODUCTION/BACKGROUND

b. Statutory Construction

i. 1987 Philippine Constitution Article II. Section 24.

The state recognizes the vital role of communication in nation-building.

Explanation:

The section stated from the Philippine Constitution explains that the state sees the important role of communication in nation-building.

Section 10.

Powers and Functions of the OMB. — The OMB shall have the following powers and functions:

(a) Formulate and implement such policies and programs as are necessary for the accomplishment of the purposes of this Act;

(b) Evaluate the qualifications of any individual, establishment or other entity to engage in the mastering, manufacture or replication of optical media. For this purpose, the OMB shall require such person to substantiate its capability to engage in said activities;

(c) Supervise, regulate, grant, or renew licenses for specific periods, or deny, suspend, or cancel the same, subject to such conditions as it may impose, for the activities enumerated in Section 13(a), (b) and (c);

Section 11.

Chief Executive Officer. — The Chairperson of the Board shall be the Chief Executive Officer (CEO). The CEO shall exercise the following powers and functions:

(a) Execute and administer the policies, decisions, orders, resolutions and the rules and regulations issued by the Board;

(b) Establish the internal organization and administrative procedures of the OMB, and recommend to the Board the appointment, transfer, detail, and suspension or dismissal for cause of its administrative and subordinate personnel;

Section 37.

Effectivity. — This Act shall take effect fifteen (15) days after its publication in the Official Gazette

or in atleast two (2) newspapers of general circulation.

Section 15.

Grounds for Non-issuance or Non-renewal of License. — The OMB may refuse to grant a license, or to renew a license, upon the following

grounds:

(a) The applicant has failed to comply with any requirement imposed by the Board pursuant to this Act and its implementing rules and regulations;

(b) The applicant or, in the case of juridical persons, any of its officers, directors, managers, shareholders, or partners, is convicted by final judgment of an offense under this Act or any law relating to the protection of intellectual property rights;

(c) The application involves a place, location or premises where an offense has been committed under this Act or under any law relating to the protection of intellectual property rights: Provided, That the offenders have finally been convicted of such offense;

Section 16.

Grounds for Suspension or Cancellation of License. — The OMB may, motu proprio or upon motion of any interested party, after notice and bearing, suspend or cancel a license on any of the grounds provided in the preceding section, and on any of the following grounds:

(a) when requested by the license holder;

(b) when the license holder has ceased to engage in the activities authorized under the license or in the place, location or premises indicated in the license;

Section 17.

Registration of Present Licenses. — All existing establishments or entities in the Philippines engaged in activities enumerated in Section 13 shall, within thirty (30) calendar days after the effectivity of the rules and regulations implementing this Act, register with and secure the necessary licenses from the OMB.

Section 18.

Source Identification (SID) Codes. — The OMB shall determine, develop and/or adopt a system of Source Identification (SID) codes that is of international recognition and acceptance.

Republic Act No. 9239 is an act regulating optical media, reorganizing for this purpose the videogram regulatory board, providing penalties therefor, and for other purposes. It is also known as the Optical Media Act of 2003.

This Act declares the guiding principles of the country to ensure the protection and promotion of intellectual property rights. It includes the regulation in manufacturing, mastering, replication, importation and exportation of optical media.

In the Philippines, there is a vast problem in duplicating optical media. Many people are imitating (mostly) DVD’s for the sake of business. For example, they record a certain video file, burn it to a DVD or CD and sell it for a lower price. However, this is not in favour of the said Law. It is against this Act to replicate or imitate an optical media because it is not right or legal to obtain some records to a person without any permission. If a person wants to copy a certain file, he/she must give credits to the owner.

To avoid these kinds of troubles, R.A. 9239 was created for the purpose of regulating the illegal manufacturing, mastering, replication, importation and exportation of optical media.

In February of 2002, the Entertainment Media Regulatory and Anti-Piracy Bill was superseded by the Optical Media Bill, which used the same template utilized in other parts of the world where optical media legislation had passed or was pending.

The Optical Media Bill introduced for the first time the idea of regulating the production of all optical discs, regardless of their content.

Finally, just two years later, on February 10, 2004, the Optical Media Act of 2003 was signed into law by President Gloria Macapagal-Arroyo. TV and film actor Edu Manzano was appointed chairman thereof soon thereafter, Chairman Manzano was the last VRB Head and the first OMB chair.

The Implementing Rules and Regulations of R.A. 9239 was approved by the Joint Congressional Oversight Committee on February 1, 2005.

Section 22.

Enforcement. — The OMB may solicit the direct assistance of other agencies, the managing authorities in the economic zones and instrumentalities of the national and local governments, and may deputize, for a limited period, the heads or personnel of such agencies and instrumentalities to perform enforcement functions of the OMB. The government agencies and instrumentalities deputized or providing assistance in the enforcement functions for the OMB, insofar as such functions are concerned, shall be subject to the direction and supervision of the OMB.

Section 23.

Disposal of Seized Materials. — Any optical media, equipment or materials found to be in violation of the provisions of this Act, and any books, records or paraphernalia providing evidence of any violation committed by any person, establishment or entity, shall be confiscated and forfeited in favor of the government and shall be disposed in accordance with pertinent laws and regulations

V. Transitory Provisions

Section 24.

The Videogram Regulatory Board (VRB) and Secretariat. — The incumbent Chairperson, Vice-Chairperson, members of the Board and Secretariat shall continue to perform their duties and functions in a hold-over capacity, and shall receive their corresponding salaries and benefits until such time that the new Chairperson and at least majority of the Board shall have been appointed and qualified

Section 33.

Congressional Oversight Committee on the OMB. — The Congressional Oversight Committee on the Optical Media Board (COC-OMB) shall be composed of the Chairs of the Senate Committees on Public Information and Mass Media and Trade and Commerce and the House of Representatives Committees on Trade and Industry and Public Information, and two (2) members each from the Senate and the House of Representatives who shall be designated by the Senate President and the Speaker of the House of Representatives: Provided, That one (1) of the two (2) Senators and one (1) of the two (2) House Members shall be nominated by the respective Minority Leaders of the Senate and the House of Representatives.

Section 34.

Implementing Rules and Regulations. — The OMB shall, within three (3) months from the effectivity of this Act, submit to the COC-OMB, the implementing rules and regulations (IRR) governing this Act. The COC-OMB shall approve the IRR within thirty (30) days.

Section 35.

Separability Clause. — If, for any reason, any provision of this Act is declared invalid or unconstitutional, the other sections or provisions not so declared shall remain in full force and effect.

Section 36.

Repealing Clause. — Presidential Decree No. 1987 is hereby repealed. Presidential Decree No. 1986 or the MTRCB Law and all other laws, rules, regulations, decrees, executive orders and other issuances or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly

V. Miscellaneous Provisions

Section 29.

Organizational Structure. — The organizational structure and staffing pattern of the OMB shall be established in coordination with the Department of Budget and Management (DBM) and in accordance with Civil Service laws, rules and regulations.

a. Requirements/Prescriptions

i. The organizational structure the OMB shall be established in coordination with the Department of Budget and Management (DBM) and in accordance with Civil Service laws, rules and regulations.

ii. The staffing pattern of the OMB shall be established in coordination with the Department of Budget and Management (DBM) and in accordance with Civil Service laws, rules and regulations.

Section 30.

Period of Implementation. — The OMB and the DBM shall prepare the necessary work programs to cover the staggered implementation of this Act for a period not exceeding five (5) years.

Section 31.

Appropriations. — The appropriations for the VRB under the current General Appropriations Act shall be used to carry out the initial implementation of this Act. Thereafter, such sums as may be necessary for its implementation shall be included in the annual General Appropriations Act.

Section 32.

Annual Report. — The OMB shall, within ninety (90) days after the end of every fiscal year, submit to the President and to Congress an annual report on its accomplishments under this Act, together with its plans and recommendations to improve and develop its capability to enforce the provisions of this Act, and a complete accounting of transactions with respect to the use of income.

Section 11.

Chief Executive Officer. — The Chairperson of the Board shall be the Chief Executive Officer (CEO). The CEO shall exercise the following powers and functions:

(a) Execute and administer the policies, decisions, orders, resolutions and the rules and regulations issued by the Board;

(b) Establish the internal organization and administrative procedures of the OMB, and recommend to the Board the appointment, transfer, detail, and suspension or dismissal for cause of its administrative and subordinate personnel;

a. Requirements/Prescriptions

i. The Chairperson of the Board shall be the Chief Executive Officer (CEO).

ii. The CEO shall execute and administer the policies issued by the Board.

iii. The CEO shall execute and administer the decisions issued by the Board.

iv. The CEO shall execute and administer orders issued by the Board

The legal basis of R.A. 9239 is:

III. LICENSING AND OTHER REGULATORY PROVISIONS

Section 13.

Licensing and Registration. — Any person, establishment or entity shall, prior to engaging in one or more of the businesses or activities enumerated hereunder, register with, and secure the appropriate licenses from the OMB:

(a) Importation, exportation, acquisition, sale or distribution of optical media, manufacturing equipment, parts and accessories and manufacturing materials used or intended for use in the mastering, manufacture or replication of optical media;

(b) Possession or operation of manufacturing equipment, parts and accessories, or the possession, acquisition, sale or use of manufacturing materials for the mastering, manufacture or replication of optical media;

Section 14.

Form, Term, Amendment and Renewal of License. — Every license shall be in a form prescribed by the OMB and shall be valid for a period of three (3) years subject to conditions as the OMB may impose. The OMB may amend or renew a license upon application made by the licensee in accordance with this Act. Failure to register and obtain a license from the OMB shall automatically cancel any permit, license or registration issued by any national or local government unit, agency or office.

a) Presidential Decree No. 1987 (October 5, 1985) created the Videogram Regulatory Board (VRB)

to regulate the content of videograms and impose taxes on the video industry.

b) Republic Act No. 9239 (February 10, 2004), also known as the Optical Media Board Act of 2003,

reorganized the VRB into the Optical Media Board to regulate the mastering, manufacturing,

importation and exportation of optical discs.

The mission of the Optical Media Board is “To help in the development of a booming and a

robust industry in order to be truly competitive in a global community” and its mission is

“An economy that is free from Optical Media Piracy where there is a level playing field for

legitimate players”.

Section 25.

Transfer of Funds, Assets, Liabilities and Records. — All unexpended appropriations, real and personal property, contracts, records, documents and assets and liabilities of the VRB shall be transferred to the OMB.

Section 26.

Regulation of Magnetic Media. — The provisions of this Act shall apply mutatis mutandis to the regulation of magnetic media.

Section 27.

Classification of Motion Pictures and Cinematographic Works. —The classification for audience suitability of motion pictures and cinematographic works in optical media including related publicity materials thereto shall be the function of the Movie and Television Review and Classification Board (MTRCB).

Section 28.

Prosecution of Pending Cases. — For the purpose of this Act, all

pending cases for violation of Presidential Decree No. 1987 shall continue to

be prosecuted.

OPTICAL MEDIA LAW