FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B.No. 1407 
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Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
In the year 2009, the Philippines ranked 47th out of 66 countries in the 
Information Technology (IT) Industry Competitiveness Index in a study conducted 
by the Economist Intelligence Unit. While the same study notes that the Philippines 
has a generally favorable business environment, there were weaknesses and 
inefficiencies in the IT sector that need to be addressed in order to improve its 
standing. 
Recognizing that the IT industry is a promising industry in the country, 
efforts can be further exerted to boost the country's competitiveness in the global 
sector. Such efforts include the expansion and rehabilitation of information and 
communications technology infrastructure, promotion of research and development, 
and most importantly, development of human resources. The government should 
also endeavour to empower the poor by affording them ease of access to IT services 
that are normally unaffordable and inaccessible. 
Tl~is bill seeks to widen the participation of the poor in the IT sector, 
particul<:trly through entrepreneurial activities. It proposes the creation of an IT 
venture' capital fund for small to medium-scale IT start-up companies in order to 
encourage more Filipinos to venture into the very dynamic industry of information 
technology. The proposed fund, which amounts to PI billion, shall be administered 
by the Department of Science and Technology. 
This measure will assist the entrepreneurs and likewise provide incentives for 
the proliferation of IT-related businesses through-out the country, thereby 
increasing connectivity, particularly in unc;lerserved areas. It .will allow the IT 
industry to penetrate even the grass roots level, thereby making IT services 
accessible to the marginalized poor. Further, the enactment of this significant piece 
of legislation is in line'with the government's objective to fast-track our country's 
economic development and its competitiveness in the global arena. 
In view of the foregoing, the passage of this bill is earnestly sought. 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B.No. 1407 
Introduced by Senator Loren Legarda 
AN ACT 
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TO ACCELERATE THE DEVELOPMENT OF INFORMATION TECHNOLOGY 
START-UP COMPANIES BY PROVIDING AN IT VENTURE CAPITAL FUND 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "IT Venture 
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Capital Fund of 2010." 
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SECTION 2. Declaration of Policy. - Recognizing the indispensable role of 
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the IT sector in driving modern business and enterprise as well as the national 
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economy, it shall be the policy of the State to accelerate the development of 
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information technology (IT) start-up companies consistent with Sections 9, 20 and 24 
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of Article II and Section 12, Article XIV of the Constitution. 
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SECTION 3. Creation of IT Venture Capital Fund. - The amount of One 
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Billion Pesos (Pl,OOO,OOO,OOOO.OO) is hereby appropriated as IT venture capital fund 
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(ITVCF), to be administered by the Department of Science and Technology (OOST), 
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to cover the initial investment requirement of small technology start-up companies 
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as provided for in this Act. Funding for this Act shall come from the special 
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appropriations by the Department of Budget and Management (OBM) and from the 
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budget surplus which shall be maintained by the DOST. 
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, 
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SECTION 4. Beneficiaries. - The following shall be the beneficiaries of this 
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Act: small technology start-up companies engaged in high-value technology e-
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services and products based on a set criteria to be laid down by the OOST for the 
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purpose, such as, but not limited to: 
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a. Web portals 
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b. Real time messaging softwares 
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c. 
d. 
e. 
f. 
g. 
h. 
i. 
j. 
E-groups 
On-line music and video sharing 
Web logging or blogging 
Animation 
Web design 
Video games 
On-line gaming 
Data warehousing 
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SECTION 5. Implementing Rules and Regulations. -
The DOST shall 
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formulate the implementing rules and regulations within sixty (60) days from the 
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effectivity of this Act. 
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SECTION 6. Separability Clause. - Should any part or provision of this Act 
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be declared unconstitutional or invalid, other parts or provisions hereof not 
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othe~wise affected thereby shall remain in full force and effect. 
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S):JCTION 7. Repealing Clause. All laws, executive orders, rules and 
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regulations or any part thereof inconsistent with the provisions of this Act are 
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deemed repealed or modified accordingly. 
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SECTION 8. Effectivity. - This Act shall take effect fifteen (15) days after its 
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publication in at least one (1) newspaper of general circulation. 
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Approved, 
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