THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
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S E N A T  
s. 60. 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
Music is part of our cultural heritage. Artistic blood run through the veins 
of each and every Filipino. Through the years, our very own musical composers, 
singers and singing groups have taken center stage in the international music 
scene, earning world wide recognition for themselves and for the country. 
However, foreign music has continued to dominate the Philippine music 
industry. Greater exposure to and preference for foreign music made Original 
Pilipino Music (OPM) a mere second choice among the people. Because of this it 
became necessary for the President to issue Executive Order No. 255, requiring 
radio stations to play a minimum of four (4) original Pilipino musical composition 
per hour. Despite this order, 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 their own music. It aims to make the market 
relatively more favorable to OPM. The objective is to provide a greater impetus 
to the musical creativity and excellent performance of our own composers, artists 
and performers. 
The approval of this measure for the development and appreciation of 
Filipino music is urgently needed. 
k, 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
) 1 
OF THE PHILIPPINES 
) 
S E N A T E  
s. No. 
Introduced by Senator S. R. OsmeAa 111 
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AN ACT 
TO PRQM,OTE 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: 
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SECTION I. 
Title. -- This Act shall be known as the "Music Industry 
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Development Act of 2004." 
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Sec. 2. Declaration of Policy. -- In consonance with the constitutional 
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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 
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the policy of the State to develop and enhance the musical creativity of the 
Filipino; to promote and cultivate the development of Filipino music; and to 
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encourage and support the promotion and propagation of Filipino music here and 
abroad. 
In adherence to such policies, this Act shall have the following objectives: 
(a) To identify, develop, protect and promote Filipino musical talent, be it 
in composition, rendition, or production; 
(b) To provide opportunities for the appropriate training and professional 
development of the musically talented; 
(c) To provide adequate mechanisms and support for the development 
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and 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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Sec. 3. Definition of Terms. -- 
(I) 
Original Pilipino Music (OPM) -- refers to any musical composition 
with or without lyrics, originally created by a Filipino, whether the lyrics 
be in Pilipino, English or other foreign languages, or any other 
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Philippine dialect. 
(2) Performers -- refer to actors, singers, musicians, dancers, and other 
persons who act, sing deliver, declaim, play in, or otherwise perform in 
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any musical work / field. 
(3) Musical Score -- refers to any exclusively visual fixation of sound for 
renditions, sound recording, or broadcasting. 
(4) Sound Recording -- refers to any exclusively aural fixation of sound of 
a performance or a recording. 
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(5) Producer of Sound Records -- refers to the person who, or the legal 
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entity which first fixes the performance or recording. 
(6) Publication -- refers to the issue or offering to the public of copies of a 
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sound recording or a musical score in reasonable quantity. 
(7) Reproduction -- 
refers to the making of a copy or copies of a 
recording or a musical score. 
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(8) Broadcasting Organization -- refers to proprietorships duly authorized 
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to engage in broadcasting. 
(9) Broadcasting -- 
refers to the transmission for public reception of 
sounds or of images and sounds. 
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Rights of the compose refer to: 
(a) Performance -- the broadcasting of musical works be it live or 
recorded. 
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(b) Mechanical -- refers to disc and tape reproduction of musical 
works. 
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(c) Synchronization -- the coordination between musical works 
and visual images in motion pictures, television shows and 
advertising commercials. 
(d) Printing 
-- 
the publication of works in musical or vocal 
arrangement. 
Sec. 4. Musical Industry Development Council. -- To achieve the 
objectives of this Act. There is hereby created a Music Industry Development 
Council, hereinafter referred to as the Council. 
The Council shall have the following powers and functions: 
(a) To stimulate and promote the creation and rendition of good music by 
means of grants, loans and other forms of assistance to qualified 
persons and institutions applying therefor; 
(b) To encourage and facilitate the organization of clubs and societies 
throughout the Philippines for the promotion and popularization 
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Filipino music through media; 
(c) To encourage the development of plans and programs, whether by the 
private or government sectors, for the identification, selection, training 
and support of musically gifted children; 
(d) To devise a system of payment of royalties to Filipino musicians that 
will guarantee Filipino musicians a minimum amount of royalty that will 
adequately compensate him or her for the work; 
(e) To promote the rights and privileges of the Filipino artists performing in 
the country, giving priority to local artists over foreign performers; 
(f) To monitor, mediate or arbitrate in the following cases, in accordance 
with guidelines it shall formulate: 
I) 
Infringement of copyright and neighboring rights of whatever 
nature or character; 
2) Controversies arising out of royalty rates, license schemes, 
compulsory licenses and relations between and among 


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intellectual property creators, users, publishers, collecting 
societies, performers, producers of sound recordings and 
broadcasting organizations; 
3) Controversies involving intellectual property in music, its 
assignment or transfer, or those involving licenses, whether 
exclusive or non-exclusive; 
(9) To accept donations, grants or contributions and to undertake fund- 
raising activities and administer the funds solicited thereat, for the 
attainment of the objectives of this Act; 
(h) To submit an annual report of its activities as well as recommendations 
to the Department of Education, Culture and Sports (DECS). 
SeC. 5. Board of Djrecfors. -- There shall be a Board of Directors 
composed of nine (9) members who, as far as practicable, should come from 
recognized associations in the music industry representing the following: 
composers, arrangers, singers, instrumentalists, conductors and producers of 
sound recordings. 
The Board shall also have as one of its members, a director of a reputable 
music school, a music patron and a representative from the Department of 
Education, Culture and Sports (DECS). 
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The Chairman of the Board shall be elected by the members from among 
themselves. 
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The first members of the Board shall be appointed by the President with 
the following staggered terms: three (3) for a term of two (2) years; three (3) for a 
term of three (3) years; and three (3) for a term of four (4) years from the date 
they qualify and assume office. 
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succeeds. 
Their successors shall be appointed by the President for a uniform term of 
six (6) years, except that any person elected by the Board to fill a vacancy in the 
Board shall serve only for the unexpired term of the member whom he or she 
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Each member shall, for each day of meeting actually attended by him, 
receive from the general fund of the Council a per diem of not more than Five 
hundred pesos (P500.00) 
and in no case shall the total per diems per month 
exceed One thousand five hundred pesos (PI ,500.00). 
Sec. 6. Equity. -- Equity or the preferential right of local performers over 
foreign performers, shall be given to local performers, producers of sound 
recordings, and all others involved in the music industry. 
An equity fee chargeable to the foreign performer ,' worker per show, from 
the lead artists down to the minor workers, shall be in such amount as may be 
determined by the Council: Provided, That it shall not be applied to the following: 
(a) classical artists; 
(b) those who perform under a cultural exchange program; 
(c) those who are sponsored or sent by counterpart cultural organizations; 
(d) those who perform for the benefit of organizations of Filipino artists; 
(e) those who waive their regular fees or perform without fees; and 
(f) Filipino artists who have acquired foreign citizenship. 
The income from equity collections of the Council shall be constituted into 
a Fund which shall be administered and managed by the Council in accordance 
with rules and regulations duly adopted by it. 
The Fund shall be utilized primarily for the benefit of local'performers: 
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Sec. 7 .  Taxation of Foreign Recordings. -- The Council shall have the 
authority to impose reasonable taxes on foreign musical recordings, the 
proceeds of which shall go to the Fund. 
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Sec.8. Promotion and Popularization of Filipino Music. -- All radio 
stations shall allot at least sixty percent (60%) of airtime to Filipino musical 
compositions, including background music, in every clockhour 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 sixty percent (60%) of airtime to Filipino compositions, including 
background music, for every clockhour of showtime / airtime. 
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All advertisements with music format over radio and TV stations shall 
likewise allot at least seventy-five percent (75%) of airtime to Filipino 
compositions. 
All background music of Filipino films shall allot at least seventy-five 
percent (75%) of playtime to Filipino music. 
All public places shall be required to play at least sixty percent (60%) of 
Filipino music for every clockhour. These public places are specified as follows: 
(a) Moviehouses -- during screening intervals; 
(b) Parks / Plazas -- music played through their public address systems; 
(c) Hotels and other lodging places, restaurants -- piped-in music or 
entertainment fare; 
(d) Shopping Malls -- music played through their public address systems, 
in shows and entertainment fare: 
(e) Public transportation by air, land and sea 
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piped-in music and 
recordings played; 
(f) Government offices and buildings -- piped-in music; 
(9) Schools, colleges, universities -- music played through their public 
address systems, in school programs, shows, or ceremonies. 
Sec. 9. Enforcement and /rnp/ernenfafion. -- The enforcement and 
implementation of the above mentioned provision shall be performed by 
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government agencies such as the Department of Education, Culture and Sports 
(DECS), in coordination with 
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Department of Transportation 
and 
Communications (DOTC), Kapisanan ng mga Broadcasters ng Pilipinas (KBP), 
the Department of Interior and Local Government (DILG), volunteer groups, civic 
organizations and deputized police agencies. 
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Sec. 10. Penalties. -- In case of violation, the punishment or penalty is 
as follows: 
(a) Any franchise holder or operator / owner of a radio / TV station which 
fails to play at least sixty percent (60%) OPM during airtime shall be 
fined in the amount of Twenty thousand pesos (P20,OOO.OO) per 
violation. 
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(b) After due hearing, the appropriate government agency shall cancel the 
Certificate of Registration and Authority to operate any radio / TV 
station in the event of three (3) repeated violations. 
Sec.1 I. 
Government lncentives. -- To develop the music industry, the 
following incentives are provided: 
(a) Formation of regional recording studios -- Regional recording studios 
administered by the Council shall be established to provide equal 
access to recording studios. 
(b) Tax relief -- The following tax incentives shall be imposed: 
1) Taxes on imported musical instruments, as long as they do not 
compete with local counterparts of the same quality, shall be 
reduced to fifty percent (50%); 
2) Taxes on imported musical equipment needed for recordings and / 
or live performances, as long as they do not compete with local 
counterparts of the same quality, shall be reduced by fifty percent 
(50 yo) ; 
3) Taxes on raw materials used in recording, whether it be local or 
imported, shall be reduced by twenty percent (20%). 
(c) Grants/ Awards / Scholarships -- Scholarship grants shall be created 
for both amateur and professional singers / musicians in order to 
further develop their 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, 


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at the provincial, regional and national levels, to be called the “Parangal sa 
Musikang Pilipino. ” 
The Council, in coordination with agencies and entities involved in the 
promotion of Filipino music, shall organize these annual events. 
Sec. 12, Promotions and Markefing. -- There shall be created a 
Promotions and Marketing Bureau of the Council for promotion and marketing of 
talents both locally and internationally. 
It shall closely coordinate with the 
Department of Foreign Affairs and the Department of Tourism for the purpose. 
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The Bureau’s main functions are as follows: 
(a) To determine, adopt and implement the best possible means for the 
Filipino performers to penetrate the international market; 
(b) To disseminate to all Filipino performers information on national and 
international competitions, including the mechanics and processes 
involved in achieving national and international success; 
(c) To develop mechanisms whereby tourists and other foreigners are 
exposed to Filipino music and musical performances; 
(d) To coordinate with the various producers, agents, talent directors both 
in the local and international market. 
Sec. 13. Tax Exemption. -- All donations, contributions, subsidies or 
aids which may be made to the Council shall be considered allowable deductions 
from the income of the donors or grantors for income tax purposes. 
Sec. 14. Appropriafions. -- Out of any funds in the National Treasury 
not otherwise appropriated, the sum of Five million pesos (P5,000,000.00) IS 
hereby appropriated as aid to the Council for its initial expenses. Thereafter, the 
Council shall submit a proposed annual budget for inclusion in the annual 
General Appropriations Act. 
Sec. 15. Repealing Clause. -- All existing laws, decrees, executive 
orders, and rules and regulatipns or parts thereof inconsistent with the provisions. 
of this Act are hereby repealed or modified accordingly. 
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Sec. j6. Separability Clause. -- In any part, section or provision of this 
Act shall be held unconstitutional or invalid, other parts or provisions hereof 
which are not affected thereby shall continue to be in full force and effect. 
Sec. 17. Effectivity. -- This Act shall take effect fifteen (1 5) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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