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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
To implement the policies and attain the objectives of Republic Act No. 9239 or the Optical Media Act of 2003, the Videogram Regulatory Board (VRB) created under Presidential Decree No. 1987 is reorganized into the Optical Media Board (OMB). (Source: Section 4, R.A. No. 9239)
In the State’s furtherance of the protection and promotion of intellectual property rights, the manufacturing, mastering, replication, importation and exportation of optical media in the Philippines must be regulated.
“Piracy of optical media is a worldwide problem owing to the ease with which optical media can be replicated and pirated. Without regulatory controls, the movie industry would suffer and would eventually prove economically unviable. The proliferation of pirated films not only deprives the government of much needed revenues but also indicates the widespread breakdown of national order and discipline.” (People of the Philippines v. Ronald Ricketts, et al., G.R. No. 250867, March 16, 2022)
The term “Optical Media” refers to 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. (Section 3, par. i, R.A. No. 9239)
Rule 2, Section 1, par. n of the Implementing Rules and Regulations of R.A. No. 9239 listed the types of Optical Media. These are:
- CD (compact disc),
- CD-A (compact disc digital audio),
- CD-I (compact disc – interactive),
- CD-P (compact disc – photo),
- CD-R (compact disc recordable),
- CD-ROM (compact disc read-only memory,
- CD-RW (compact disc rewritable),
- CD-WO (compact disc write once),
- CVD (China video disc),
- DVD (digital versatile disc),
- DVD-RAM (digital versatile disc random access memory),
- DVD-ROM (digital versatile disc read-only memory),
- EVD (enhanced versatile disc),
- LD (laser disc),
- MD (mini disc),
- SACD (Super audio compact disc),
- SVCD (super video compact disc),
- VCD (video compact disc),
- or any technical variation thereof, now known or to be known in the future;
The Optical Media Board (OMB)
The Optical Media Board (OMB) was created by virtue of Republic Act No. 9239 or the Optical Media Act of 2003. The OMB is an office under the Office of the President.
The law says:
“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.” (Section 4, R.A. No. 9239)
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);
(d) Conduct inspections, by itself or in coordination with other competence agencies of the government, at anytime, with or without prior notice, of establishments or entities including those within the economic zones engaged in the activities as provided in Section 13(a), (b) and (c) of this Act, and employ reasonable force in the event that the responsible person or persons of such establishment or entity evades, obstructs, or refuses such inspection. For this purpose, the agents of the OMB shall be considered agents in authority;
(e) Apply for or obtain search warrants from any court of law, or take into preventive custody any optical media and/or material or equipment, including parts, accessories and paraphernalia used for the mastering, manufacture or replication of optical media which are found in any premises if the OMB has reasonable ground to believe or suspect that these are evidence of violation of the provisions of this Act;
(f) Act as complainant in the criminal prosecution of violators of this Act;
(g) Hear and resolve administrative cases against violators of this Act and impose administrative sanctions including, but not limited to, the imposition of fines and penalties; confiscation of optical media; and suspension, non-renewal or cancellation of the license to operate and/or closure of establishments or entities that violate the provisions of this Act. For this purpose, the Board shall have the power to issue subpoena or subpoena duces tecum to compel the attendance of witnesses and production of documents and other effects;
(h) Call upon law enforcement agencies and the managing authorities in the economic zones for assistance in the implementation and enforcement of its decisions, orders, rules and regulations;
(i) To deputize, whenever necessary, provincial governors, city and municipal mayors, and representatives of the national government agencies, organizations representing copyright owners, neighboring rights owners and concerned sectors to help monitor compliance with and report to the OMB any violation of this Act;
(j) Require persons, establishments and entities engaged in the activities in Section 13 to keep and maintain for a period of at least five (5) years true and complete records of all activities related to the conduct of its business. For this purpose, the Board may, at any time, require the production of such records and samples of optical media from each mastering, manufacturing or replicating line;
(k) Levy, assess and collect, and periodically adjust and/or revise the rates of fees and charges for the issuance of licenses granted under this Act;
(l) Establish support offices as may be necessary;
(m)Create and maintain a database, and regularly publish data containing the list and activities of registered and/or licensed optical media and other related establishments. Any enforcement agency, including the Bureau of Customs, may refer to this database for enforcement and/or seizure;
(n) Prescribe the internal and operational procedures for the exercise of its powers and functions, the performance of its duties and responsibilities and other related matters; and
(o) Exercise such other powers and functions as may be necessary or incidental to the attainment of the purposes and objectives of this Act, and to perform other related duties and responsibilities as may be directed by the President. (Section 10, R.A. No. 9239)
Power of the OMB to Issue Licenses and Registration
Persons or entities who wish to engage in the business of optical media shall first secure the appropriate license with the OMB. According to the law:
Any person, establishment or entity shall, prior to engaging in one or more of the business 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; and
(c) The mastering, manufacture, replication, importation or exportation of optical media.
With respect to the preceding paragraph (c), the licenses issued by the OMB are conditions precedent for securing the necessary business permits, licenses, or registration from the appropriate authorities, and shall also be necessary requirement for the release of manufacturing equipment, parts and accessories, and materials intended for use in mastering and/or manufacturing optical media, from customs or economic zones exercising independent custom laws.
Those engaged or intending to engage in more than one of the above-mentioned activities and/or conduct or intend to conduct business in more than one location shall separately register with and secure the license from the OMB for every business activity at each place of business.
No business activity registered and licensed by the OMB for a specific place of business shall be conducted in a place and/or location other than that indicated in the license, without the prior written approval of the OMN. The registration and license issued by the OMB shall be prominently displayed at the designated place of business.” (Section 13, R.A. No. 9239)
Related Article/s:
What is the Doctrine of Fair Use?
Commerce and Industry Week (Proclamation No. 480, s. 1968)
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