FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 111 7 
INTRODUCED BY HON. MANNY VILLAR 
EXPLANATORY NOTE 
Hl 
JUL 12 M :2.9 
The musicality of Filipinos is hugely. beyond question .. First rate Filipino 
composers, singers and singing groups comprise a rich human resource for the 
country's cultural and economic development. 
Yet ironically, foreign music has dominated the Philippine music industry. In fact, 
the airtime ratio is still favorable to foreign music. This condition should be reversed. 
This bill intends to bring about a broader access by our people to our own music, 
hence, the approval of this measure for the development and appreciation of Filipino 
music is urgently needed. 
MANNY ILLAR 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE-
Senate Bill No. 111 7 
HI 
JUl 12 M :29 
INTRODUCED BY HON. MANNY VILLAR 
AN ACT 
TO PROMOTE THE DEVELOPMENT OF THE PHILIPPINE MUSIC INDUSTRY, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. 
-
This Act shall be known as the "Music Industry 
2 
Development Act." 
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SECTION 2. 
Declaration of Policy. -
In consonance with the Constitutional 
5 
mandate to conserve, promote, and popularize the nation's historical and cultural 
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heritage and resources as well as its artistic creations, it is hereby declared to be the 
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policy of the State to develop and enhance the musical creativity of the Filipino; to 
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promote and cultivate the development of Filipino music; and to encourage and support 
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the promotion of propagation of Filipino music here and abroad. 
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1J 
In adherence to such policies, this Act shall have the following objectives: 
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(a) To identify, develop, protect and promote Filipino musical talent, be it in 
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composition, rendition, or production; 
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(b) To provide opportunities for the appropriate training and professional 
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development of the musically talented; 
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(c) To provide adequate mechanisms and support for the development and 
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protection of the Filipino music industry; and 
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(d) To popularize and promote Filipino music in the country and abroad. 
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SECTION 3. Definition of Terms. -
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(1) Original Pilipino Music (OPM) - refers to any musical composition with or 
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without lyrics, originally created by a Filipino, whether the lyrics be in Pilipino, 
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English or other foreign language, or any other Philippine dialect. 
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(2) Performers - refer to actors, singers, musicians, dancers and other persons 
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who act, sing, deliver, declaim play in, or otherwise perform in any musical 
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work/field. 
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(3) Musical Score -
refers to any exclusively visual fixation of sound for 
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renditions, sound recording or broadcasting 
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(4) Sound Recording -
refers to any exclusively aural fixation of sound of a 
2 
performance or recording. 
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(5) Producer of Sound Records - refers to the person who, or the legal entity 
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which first fixes the performance or recording 
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(6) Publication - refers to the issue of offering to the public of copies of a sound 
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recording or a musical score in reasonable quantity 
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(7) Reproduction - refers to the making of a copy or copies of a recording or a 
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Tl'lusical score. 
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(8) !3roadcasting Organization - refers to the proprietorship duly authorized to 
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. engage in broadcasting 
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(9) Broadcasting - refers to the transmission for public reception of sounds or of 
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images and sounds 
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(10) 
Rights of the composer refer to: 
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(a) Performance - the broadcasting of musical works be it live or recorded 
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(b) Mechanica/- refers to the disc and tape reproduction of musical works 
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(c) Synchronization -
the coordination between musical works and visual 
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images in motion pictures, television shows and advertising commercials 
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(d) Printing - the publication of works in musical and vocal arrangement 
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SECTION 4. Musical Industry Development Council. - To achieve the objectives 
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of this Act, there is hereby created a Music Industry Development Council, hereinafter 
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referred to as the Council, hereinafter referred to as the Council. 
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The Council shall have the following powers and functions: 
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(a) To stimulate and promote the creation and rendition of good music by means 
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of grants, loans and other forms of assistance to qualified persons and 
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institutions applying therefor; 
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(b) To encourage and facilitate the organization of clubs and societies 
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throughout the Philippines for the promotion and popularization of Filipino 
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music though media; 
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(c) To encourage the development of plans and programs, whether by private or 
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government sectors, for the identification, selection, training and support of 
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musically gifted children; 
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(d) To devise a system of payment of royalties to Filipino musicians that will 
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guarantee Filipino musicians a minimum amount of royalty that will 
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adequately compensate him or her for the work; 
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(e) To promote the right and privileges of the Filipino artists performing in the 
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country, giving priority to local artists over foreign performers; 
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(f) To monitor, mediate or arbitrate in the following cases, in accordance with 
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guidelines it shall formulate: 
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1. Infringement of copyright and neighboring rights of whatever nature or 
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character. 
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2. Controversies arising out of royalty rates, license schemes, compulsory 
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licenses and relations between and among intellectual property creators, 
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' 
users, publishers, collecting societies, performers, producers of sound 
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recordings and broadcasting organizations 
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3. Controversies involving intellectual property in music, its assignment or 
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transfer, or those involving licenses, whether exclusive or non-exclusive. 
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(g) To accept donations, grants or contributions and to undertake fund-raising 
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activities and administer the funds solicited thereat, for the attainment of the 
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objectives of this Act; 
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(h) To submit an annual report of its activities as well as recommendations to 
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the Department of Education (DepEd) 
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3 


SECTION 5. 
Board of Directors. -
There shall be a board of Directors 
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composed of nine (9) members, who, as far as practicable, should come from 
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recognized associations in the music industry representing the following: composers, 
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arrangers, singers, instrumentalists, conductors and producers of sound recordings. 
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The Board shall also have as one of its members, a director of a reputable music 
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school, a music patron and a representative from DepEd. 
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The Chairman of the Board shall be elected by the members from among 
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themselves. 
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The first members of the Board shall be appointed by the President with the 
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following staggered terms: three (3) for a term of two (2) years; three (3) for term of 
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three (3) years; and three (3) for a term of four (4) years from the date they qualify and 
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assume office. 
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Their successor shall be appointed by the President for uniform term of six (6), 
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except that any person elected by the Board to fill a vacancy in the Board shall serve 
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only for the unexpired term of the member who he or she succeeds. 
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Each member shall, for each day of meeting actually attended by him, receive 
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from the general fund of the Council per diem of not more that Five hundred pesos 
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(P500.00) and in no case shall the total per diem per month exceed One thousand five 
24 
hundred pesos (P1,500.00) . 
• 
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SECTION 6. Equity. - Equity or the preferential right of local performers over 
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foreign performers, shall be given to local performers, producers of sound recordings 
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and all others involved in the music industry. 
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An equity fee chargeable to the foreign performer/worker per show, from the lead 
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artists down to the minor workers, shall be in such amount as may be determined by 
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the Council: Provided, That it shall not be applied to the following: 
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(a) classical artists; 
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(b) those who perform under a cultural exchange program; 
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(c) those who are sponsored or sent by counterpart cultural organizations; 
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(d) those who perform for the benefit of organizations of Filipino Artists; 
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(e) those who waive their regular fees or perform without fees; and 
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(f) Filipino artists who have acquired foreign citizenship 
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The income from equity collections of the Council shall be constituted into a fund 
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which shall be administered and managed by the Council in accordance with rules and 
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regulations duly adopted by it. 
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The fund shall be utilized primarily for the benefit of the local performers. 
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SECTION 7. 
Taxation and Foreign Recordings. - The Council shall have the 
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authority to impose reasonable taxes on foreign musical recordings, the proceeds which 
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shall go to the Fund. 
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SECTION 8. Promotion and Popularization of Filipino Music. - All radio stations 
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shall allot at least sixty percent (60%) of airtime to Filipino compositions, including 
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background music, in every c1ockhour of a program with a musical format. 
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All musical/variety/cultural programs in all TV stations shall also allot at least 
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sixty percent (60%) of airtime to Filipino compositions, including background music, for 
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every clockhour of showtime/airtime. 
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All a.dvertisements with music format over radio and TV stations shall likewise 
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allot at lea~t seventy-five percent (75%) of airtime to Filipino compositions. 
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All background music of Filipino films shall likewise allot at least seventy-five 
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(75%) of playtime to Filipino music. 
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All public places shall be required to play at least sixty percent (60%) of Filipino 
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music for every clockhour. These public places are specified as follows: 
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(a) Moviehouses - during screening intervals 
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(b) Parks/Plazas - music played through· their public address systems 
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(c) Hotels and other lodging places, 
restaurants -
piped-in music or 
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entertainment fare 
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(d) Shopping Malls -
music played through their public address systems, in 
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shows and entertainment fare 
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(e) Public transportation by air, land and sea - piped-in music and recordings 
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played 
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(f) Government offices and buildings - piped-in music 
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(g) School, colleges and universities - music played through their public address 
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systems, in school programs, shows and ceremonies. 
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SECTION 9. 
Enforcement and Implementation. -
The enforcement and 
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implementation of the above mentioned provisions shall be performed by government 
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agencies such as DepEd, in coordination with the Department of Transportation and 
26 
Communication (DOTC), Kapisanan ng mga 
Broadcasters ng Pilipinas (KBP), the 
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Department of the Interior and Local Government (DILG), volunteer groups, civic 
28 
organizations and deputized police agencies. 
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SECTION 10. Penalties. - In case of violation, the punishment or penalty is as 
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follows: 
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(a) Any franchise holder or operator/owner of radiolTV station which fail to play 
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at least sixty percent (60%) OPM during airtime shall be fined in the amount 
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of Twenty thousand pesos (P20,000.00) per violation. 
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(b) After due hearing the appropriate government agency shall cancel the 
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Certificate of Registration and Authority to operate any radiolTV station in the 
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event of three (3) repeated violations. 
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SECTION 11. 
Government Incentives. - To develop the music industry, the 
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following incentives are provided: 
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(a) Formation of regional recording studios -
Regional recording studios 
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administered by the Council shall be established to provide equal access to 
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recording studios 
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(b) Tax Relief- The following tax incentives shall be imposed: 
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1. Taxes on imported musical instruments, as long as they do not compete 
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with local counterparts of the same quality, shall be reduced to fifty 
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percent (50%); 
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2. Taxes on imported musical instrument needed for recordings and/or live 
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performances, as long as they do not compete with local counterparts of 
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the same quality, shall be reduced to fifty percent (50%); 
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3. Taxes on raw materials used in recording, whether it be local or imported, 
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shall be reduced by twenty percent (20%); 
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(c) Grants/Awards/Scholarships - Scholarship grants shall be created for both 
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amateur and professional singers/musicians in order to further develop their 
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capabilities. 
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Musical awards shall be given annually to both amateur and 
professional 
singers/artists/performers 
and 
all 
other 
music-related 
performances and jobs, at the provincial, regional and national levels, to be 
called the "Paranga/ sa Musikang Pilipino". 
The Council in coordination with agencies and entities involved in 
the promotion of Filipino music, shall organize these annual events. 
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SECTION 12. Promotions and Marketing. - There shall be created a promotions 
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and marketing Bureau of the Council for promotion and marketing of talents both locally 
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and internationally. It shall closely coordinate with the Department of Foreign Affairs 
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and the Department of Tourism for the purpose. 
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The Bureau's main functions are as follows: 
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(a) To determine, adopt and implement the best possible means for the Filipino 
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performers to penetrate the international market; 
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(b) To d.isseminate to all Filipino performers information on national and 
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international competitions, including the mechanics and processes involved 
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in achieving national and international success; 
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(c) To develop mechanisms whereby tourists and other foreigners are exposed 
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. to Filipino music and musical performances; 
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(d) To coordinate with the various producers, agents, talent directors both in the 
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local and international market. 
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SECTION 13. Tax Exemption. - All donations, contributions, subsidies or aids 
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which may be made to the Council shall be considered allowable deductions from the 
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income of the donors or grantors for income tax purposes. 
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SECTION 14. Appropriations. - Out of any funds in the National Treasury not 
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otherwise appropriated,. the sum of Five million pesos (P5,OOO,OOO.OO) 
is hereby 
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appropriated as aid to the Council for its initial expenses. Thereafter, the Council shall 
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submit a proposed annual budget for inclusion in the annual General Appropriations 
33 
Act. 
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SECTION 15. Repealing Clause. - All existing laws, decrees, executive orders 
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and rules and regulations or parts thereof inconsistent with the provisions of this Act are 
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hereby repealed, or modified accordingly. 
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SECTION 16. Separability Clause. - If any part, section or provision of this Act 
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shall be held unconstitutional or invalid, other parts or provisions hereof which are not 
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affected thereby shall continue to be in full force and effect. 
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SECTION 17. Effectivity. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
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Approved, 
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