Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 810

Introduced By Hon. Christopher V.P. De Venecia, Hon. Francisco "Kiko" B.
Benitez, Hon. Lucy Torres-Gomez, Hon. Rosanna "Ria" V. Vergara, Hon.
Sharon 8. Garin, Hon. Stella Luz A. Quimbo, Hon. Lianda B. Bolilia, Hon.
Cristal L. Bagatsing, Hon. Aloy Lim, Hon. Maria Lourdes T. Arroyo, Hon.
Alfred C. Delos Santos, Hon. Edward V.P. Maceda, Hon. John Marvin "Yul
Servo" C. Nieto, Hon. Joy Myra Tambunting, Hon. Evelina G. Escudero,
Hon. Xavier Jesus D. Romualdo, Hon. Kristine Singson-Meehan, Hon. Juan
‘Miguel Macapagal Arroyo, Hon. Anna Marie Villaraza-Suarez, Hon. Marlyn
"Len" B, Alonte, Hon. Deogracias Victor "DV" B. Savellano, Hon. Lorenz R.
Defensor, Hon. Joey Sarte Salceda, Hon. Ronnie L. Ong, Hon. Rufus B.
Rodriguez, Hon. Loren Legarda, Hon. Ann K. Hofer, Hon. Rose Marie "Baby"
J. Arenas, Hon. Angelica Natasha Co, Hon. Claudine Diana D. Bautista, and
Hon. Sol Aragones

AN.ACT
PROVIDING FOR THE PROMOTION AND DEVELOPMENT OF THE
PHILIPPINE CREATIVE INDUSTRIES AND PROVIDING FUNDS THEREFOR

EXPLANATORY NOTE

Filipinos have been renowned for their creativity for as long as the Philippines
has been a nation. In this century, recognition of the Filipino’s creative genius
has only become more pronounced. A survey of recent years will show that
Filipino creatives in diverse fields such as film, fashion design, literature, music,
graphic design, animation, and music—just to name a few—have garnered
acclaim and received accolades for their work. Many have won awards in
competition with artists from most developed countries of the world.

Despite this, Filipino artists have had to achieve with little to no reinforcement
from the government. A major reason why government agencies have been
lackluster in providing much-needed support to creative Filipinos is due to the
fact that no one agency has yet been put in charge of the planning, direction-
setting, and implementation of any effort to promote the Philippines creative


industries. It may then be said that what is lacking is not interest or enthusiasm
for these industries, but leadership.

This leadership vacuum in our governance framework becomes even more
glaring when we compare ourselves with our ASEAN neighbors. Thailand’s
Creative Economy Agency was organized in 2018 to promote the country’s
creative economy and to support the development of creativity and innovation
within their shores. Indonesia reorganized its Creative Economy Agency with its
Ministry of Tourism in 2019 to achieve synergies in country branding and
promotions and the upliftment of traditional arts and crafts. As early as 2012,
Malaysia already allocated a total of 50 million US dollars to MYCREATIVE
VENTURES Sdn. Bhd., the State’s investment arm established to spur the
country’s creative industry. Vietnam also ratified a national strategy for the
development of cultural industries in 2016, setting concrete economic targets
such as 7% share of GDP and 3.2 billion US dollars in revenues by the year 2030.

The rationale for supporting and steering the Philippines’ creative industries is
first and foremost economic. With the creative industries covering a wide range
of sectors, their potential to contribute to the economy is great. Estimates from
the Census of Philippine Business and Industry (CPBI) show that in 2012, the
creative industries generated around 689 billion pesos, or 6.52% of the GDP for
that year. They observed a 12.7% annual growth rate from 1999-2010, which is
twice the growth rate of the National Economy.

The numbers also look promising when we examine the data concerning exports
from the UNCTAD 2018 report. According to said report, the Philippines
generated around 915 million US dollars in terms of creative goods. Meanwhile,
we were able to generate 3.2 billion US dollars or around 155 billion pesos in
terms of creative services. Interestingly, 3.1 billion US dollars of our creative
services comes from Information Technology services.

However, when we start looking at our performance vis-a-vis the global creative
marketplace, the perspective becomes underwhelming. From the UNCTAD 2018
Creative Economy Outlook, the value of Creative Goods & Services trade from
Asia-Pacific alone amounts to 200 billion US dollars. However, the Philippines
only accounted for four billion US dollars or a measly 2% of this regional pie.

Currently in the Philippines, the combined creative industries are worth PHP 600
billion and employ 14.4 percent of the labor force. Even with the effects of
automation and the disruption of industries in the Fourth Industrial Revolution
or 4IR, where human workers are being replaced with machines and artificial
intelligence, the creative industries are so far immune. According to TESDA,
“Filipino workers in creative industries generally will not be replaced in the near-
future since robots are not yet smart enough to write their own novels, formulate
the their own creative designs, and the like.”


‘The Department of Trade and Industry (DTI) and the Creative Economy Council
of the Philippines in 2019 crafted a draft economic road map for the creative
industries stating: “By 2030 the Philippines will be the number one creative
economy in Asean in terms of size and value of our creative industries, as well
as the competitiveness and attractiveness of our creative talent and content in
international markets.” However, without fundamental legislative reform that
rationalizes government support to the creative industry, there is little to no
chance that the road map as charted by the DTI and the Council could succeed.

Establishing a central agency is prerequisite to a country achieving and realizing
the vast potential of its creative industries. For instance, data on the creative
industries remain limited and unorganized because only a loose group of cultural
agencies, private groups, and even individuals in their private capacity collect
and analyze such data. Moreover, most of the institutional support given to our
creative industries are often siloed among different government agencies.
Institutional linkages are limited and there is no unified policy direction towards
the development of this sector. A centralized body tasked to handle affairs
concerning our creative industries will remedy this institutional gap.

Under this proposed measure, the Philippine Creative Industries Development
Council will be established. The Council shall be charged with the creation and
implementation of a Philippine Creative Industries Development Plan and shall
coordinate the creative industry efforts of the national government agencies,
local government units, and private sector stakeholders. This proposed measure
likewise seeks to strengthen the intellectual property rights regime of protected
creative industries. Finally, it seeks to provide technical, technological, financial,
and institutional support and incentives towards achieving rapid growth in
targeted creative industries.

In view of the foregoing, the passage of the bill is earnestly sought.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 81ey

Introduced By Hon. Christopher V.P. De Venecia, Hon. Francisco "Kiko" B.
Benitez, Hon. Lucy Torres-Gomez, Hon. Rosanna "Ria" V. Vergara, Hon.
Sharon 8. Garin, Hon. Stella Luz A. Quimbo, Hon. Lianda B. Bolilia, Hon.
Cristal L. Bagatsing, Hon. Aloy Lim, Hon. Maria Lourdes T. Arroyo, Hon.
Alfred C. Delos Santos, Hon. Edward V.P. Maceda, Hon. John Marvin "Yul
Servo" C. Nieto, Hon. Joy Myra Tambunting, Hon. Evelina G. Escudero,
Hon. Xavier Jesus D. Romualdo, Hon. Kristine Singson-Meehan, Hon. Juan
Miguel Macapagal Arroyo, Hon. Anna Marie Villaraza-Suarez, Hon. Marlyn
"Len" B. Alonte, Hon. Deogracias Victor "DV" B. Savellano, Hon. Lorenz R.
Defensor, Hon. Joey Sarte Salceda, Hon. Ronnie L. Ong, Hon. Rufus B.
Rodriguez, Hon. Loren Legarda, Hon. Ann K. Hofer, Hon. Rose Marie "Baby"
J. Arenas, Hon. Angelica Natasha Co, Hon. Claudine Diana D. Bautista, and
Hon. Sol Aragones

AN ACT
PROVIDING FOR THE PROMOTION AND DEVELOPMENT OF THE
PHILIPPINE CREATIVE INDUSTRIES AND PROVIDING FUNDS THEREFOR

SECTION 1. Short Title. This Act shall be known as the Philippine Creative
Industries Act.”

TITLEI
DECLARATION OF PRINCIPLES AND DEFINITIONS

SECTION 2. Declaration of Policy. It is hereby declared the policy of the State
to promote and support the development of the Philippine creative industries, to
protect and strengthen the rights of creative firms, artists, creators, and content
providers, and to cultivate all economic activities having their origin in creative
skill and talent through the use of intellectual property, in pursuance of the
Constitution's emphasis on technology, arts, and culture.

SECTION 3. Definition of Creative Industries. As used in this Act, the term
‘creative industries’ shall refer to those industries involving persons, whether


natural or juridical, that produce cultural, artistic, and innovative goods,
products, and services, where such goods, products, and services originate in
individual creativity, skill, and talent and that have a potential for wealth and
through the generation and exploitation of intellectual property.

It includes industries directly or indirectly involved in the creation, production
and manufacturing, performance, broadcasting, communication and exhibition,
or distribution and sale of works and other subject matter, as protected by
intellectual property rights.

Creative industries shall include the following industries:
a) Traditional Cultural Expressions, such as arts and crafts and festivals and

celebrations;

b) Performing Arts, such as live music, theater, dance, opera, circus, and
puppetry;

©) Audiovisuals, such as film, television, edutainment, radio, and other
broadcasting;

d) New Media, such as software, video games, and digitalized creative content;

e) Creative Services, such as architectural, advertising, creative research and
development, cultural, and recreational services;

f) Design, such as interior, graphic, fashion, jewelry, and toys;

g) Publishing and Printed Media, such as books, comics, press, and other
publications;

h) Visual Arts, such as paintings, illustrations, sculptures, photography, and

antiques;

Cultural Sites, such as archeological sites, museums, libraries, and

exhibitions;

j) and other such industries as the Council may determine based on the
extent of the use of creativity and intellectual property as input in such.

TITLE I
THE PHILIPPINE CREATIVE INDUSTRIES DEVELOPMENT PLAN

SECTION 4. The Philippine Creative Industries Development Plan. - There
is hereby established a Philippine Creative Industries Development Plan,
hereinafter referred to as the Plan, which shall refer to a comprehensive set of
objectives, targets, strategies and activities focusing on the growth and
development of Philippine creative industries in the short-term, medium-term,
and long-term.

‘The Plan shall include the following objectives, among other objectives as may
later be determined by the Council:

a. Review, promulgate, and ensure implementation of policies, plans, and
programs to nurture and develop Philippine creative industries;


. Provide relevant and up-to-date data and conduct scientific,
interdisciplinary and policy-oriented research on __ technological
advancements, methodologies, distribution models, and product lines to
creative industries;

. Promote strategic investments in the creative industries;

. Provide financial assistance, investments schemes, loan programs, and
guarantees for micro, small, and medium enterprises (mSME) in the
creative industries;

. Provide scholarships to underprivileged but deserving college and post
graduate students enrolled in courses related to the creative industries, as
well as continuous education, talent and skills training, and capacity-
building for stakeholders in the creative industries;

Provide technical, technological, and financial assistance for the
development, processing, commercialization and marketing of goods and
services generated by the creative industries;

. Provide stronger linkages and collaborations between stakeholders in the
creative industries and government;

. Provide creative industries greater access to both national and
international markets by harnessing their competitive advantages

Identify possible Special Economic Zones that would support the growth
and development of various creative industries in accordance with R.A. No.
7916, as amended, as part of a digital-creative economy nexus;

Promote hiring and employment of workers in the creative industries;
. Promote a strong intellectual property regime among creative industries;

Develop a comprehensive digital acceleration plan for Philippine creative
industries, in coordination with the Department of Information and
Communication Technology (DICT);

Create a Disaster Risk Reduction Management Plan for the creative
industries, which shall include, among others, plans and programs that
the National Government and the Local Government Units (LGU) shall
undertake upon the occurrence of national calamities, economic
recessions, and such other extraordinary circumstances that may
adversely affect the creative industries; and

. Endeavor to provide health and unemployment benefits, pension, and
such other social benefits to creative industry workers, in coordination
with the Social Security System (SSS) and Philippine Health Insurance
Corporation (PhilHealth).


The Plan shall be updated and assessed on a regular basis.

TITLE Il
ORGANIZATION OF THE PHILIPPINE CREATIVE INDUSTRY
DEVELOPMENT COUNCIL

SECTION 5. The Philippine Creative Industry Development Council - There
is hereby created a Philippine Creative Industry Development Council, herein
referred to as the Council which shall be administratively attached to DTI and
shall be in charge of implementing the Philippine Creative Industry Development
Plan. The Council shall be composed of a Chairperson and twelve (12) members,
five (5) of whom shall be regular members while the other seven (7) shall serve
in an ex-officio capacity: Provided, that the Chairperson shall be Filipino, have
good moral character, and be a person of proven administrative proficiency,
independence, experience, knowledge, and commitment to the promotion and
development of Philippine creative industries with at least ten (10) years of
competence, expertise, and leadership in the creative industries; Provided,
further, that the Chairperson shall be appointed by the President of the
Philippines; Provided, finally, that the regular members shall have worked
extensively in the creative industries for at least ten (10) years and shall be
appointed by the President of the Philippines from a list of nominees to be
submitted by the Council.

The seven (7) members who shall be ex-officio members of the Council are:

1) Secretary of the Department of Trade and Industry (DT!), or his or her
duly authorized representative who is at least the rank of Undersecretary;

2) Secretary of the Department of Education (DepEd), or his or her duly
authorized representative who is at least the rank of Undersecretary;
3) Secretary of the Department of Science and Technology (DOST), or his or

her duly authorized representative who is at least the rank of
Undersecretary;

4) Chairman of the National Commission for Culture and the Arts (NCCA),
or his or her duly authorized representative who is at least the rank of
Undersecretary;

5) Director General of the Intellectual Property Office of the Philippines
(IPOPHL), or his or her duly authorized representative who is at least the

rank of Undersecretary;

6)

Secretary of the National Economic Development Authority (NEDA), or his
or her duly authorized representative who is at least the rank of


Undersecretary;

7) Secretary of the Department of Tourism (DOT), or his or her duly
authorized representative who is at least the rank of Undersecretary;

The five (5) regular members shall be as follows:
1) One (1) representative from the media;
2) One (1) representative from the academe;
3) One (1) representative who is a member of the Philippine Bar; and
4) Two (2) representatives from creative industries.

SECTION 6. Term of Office - The Chairperson and the five (5) regular members
shall hold office for a term of three (3) years unless sooner removed by the
President; Provided, that they shall be eligible for reappointment after the
expiration of their respective terms: Provided, further, that no Chairperson shall
serve for more than two (2) consecutive terms. If the Chairperson fails to
complete his or her term, the person appointed to fill the vacancy shall serve
only for the remainder of the term; Provided, finally, that the service to be
rendered by his or her replacement shall not be counted as a term.

SECTION 7. Meetings - The Council shall meet regularly, at least once a month,
or as often as necessary at the call of the Chairperson or majority of the members.
A majority of the members of the Council shall constitute a quorum to do
business. The members of the Council shall be entitled to honoraria based on
existing government accounting and auditing rules and regulations.

SECTION 8. Mandate, Powers, and Functions of the Council. - The Council
shall have the following powers and functions:

a) To review all existing policies, plans, programs and projects of the
government and to formulate and recommend national policies, plans, and
programs in support of creative industries, in coordination with non-
government organizations and business support organizations;

b) To generate and mobilize resources from domestic and foreign sources for

the implementation of the Plan, to receive and accept donations and other

conveyances including funds, materials and services, by gratuitous title,
as well as to rationalize the use and the equitable distribution of such
resources to the various creative industries;

To establish a secretariat under an Executive Director for the
administrative and day-to-day operations of the Commission;

3


) To classify the creative industries into sub-sectors based on strategic
considerations, and create technical panels, working groups, or task forces
that will assist the Council in the performance of its functions;

To ensure the promotion, marketing, distribution, and export of creative
industry output in both local and international markets;

e)

f) To develop and sustain cooperative exchanges, partnerships, and
collaborations among government agencies, creative _ entities,
organizations, and associations, both domestically and overseas;

g) To formulate, oversee, and assess strategies, in partnership with the
Philippine National Commission for UNESCO (UNACOM) and local
government units, towards the establishment of United Nations
Educational, Scientific, and Cultural Organisation (UNESCO) Creative
Cities;

h) To formulate the criteria in identifying the persons and stakeholders in the

creative industries who shall receive aid from the State in times of national

emergencies;

i) To maintain a database of all relevant data and information regarding the
creative industries in conjunction with other government agencies such as
the Philippine Statistics Authority (PSA), NEDA, DTI, NCCA, and other
such agencies that maintain any related database;

j) To encourage persons in the creative industries to join business support
organizations in their respective fields;

k) To formulate a process of accreditation of business support organizations
that shall be entitled to the programs of the Council under this Act;

1) To maintain a database of accredited business support organizations in
the creative industries, in coordination with the Local Creative Industry
Development Councils (LCIDC), pursuant to Section 17 of this Act;

m) To establish a consultative mechanism for continuing dialogue between
government and business support organizations within the creative
industries on proper planning and evaluation of policies, programs and
projects affecting its stakeholders;

n) To conduct capacity-building programs and training for the LCIDC;


0) To build national awareness of the creative industries through advocacy
and communication campaigns;

p) To prepare and submit to the President through the Department of Budget
and Management (DBM) an estimate of the necessary expenditures during
the next fiscal year, on the basis of the reports and estimates submitted
by the Secretariat;

q) To promulgate such rules and regulations and exercise such other powers
and functions as may be necessary to effectively carry out the attainment
of the purposes and objectives of this Act.

SECTION 9. Organization of the National Secretariat on Creative
Industries. - The Council shall organize a secretariat to be headed by an
Executive Director, who shall be a Filipino citizen and a resident of the
Philippines and be at least thirty (30) years of age. The Executive Director shall
possess good moral character, be of proven integrity and be a holder of a college
degree in a related field of discipline. The Council shall fix its staffing pattern,
determine the duties, qualifications, responsibilities and functions as well as the
compensation scheme for the positions to be created upon the recommendation
of the Executive Director. The staffing pattern shall be approved and prescribed
by the Council within one hundred twenty (120) days from the approval of this
act.

The Executive Director shall be assisted by two (2) Deputy Executive Directors
and an administrative staff. The Department of Trade and Industry and other
related NGAs shall provide the technical staff complement for the Secretariat.

TITLE IV
STATE SUPPORT TO THE CREATIVE INDUSTRIES

SECTION 10. Infrastructure Support. - The Shared Service Facilities (SSF)
project of the Department of Trade and Industry shall be provided to creative
industries as part of infrastructure. The Council shall also create subsidized
rental schemes for studios and venues, and provide co-working spaces and other
similar facilities and hardware as may be utilized by multiple creative industry
stakeholders towards the creation, cultivation, and promotion of their goods or
services.

SECTION 11. Digitization of the Creative Industries - The council, in
partnership with DICT, shall provide access to digital services and digital training
platforms for mSMEs and freelancers in the creative industries. The council, in
partnership with DICT, shall also provide technical and financial assistance to
Filipino entities that shall endeavor to create digital content distribution
platforms benefitting the creative industries. Dedicated high-speed


infrastructure and bandwidth shall also be provided by the Council, in
partnership with the DICT, to service providers in the creative industries.

SECTION 12. Creative Voucher System. - There is hereby established a
Creative Voucher System that shall systematize the granting of support, aid, and
other incentives to creative industry entities. To this end, the Council shall issue
Creative Vouchers to stakeholders from accredited business support
organizations or associations in the creative industries, which shall entitle them
to receive such support, aid, and incentives from the various government
agencies. The implementation of the Creative Voucher System shall be subject
to the guidelines, rules, and regulations that the Council shall provide.

SECTION 13. Creative Industries Investment Priority Plan. The Council shall
create a Creative Industries Investment Priority Plan (CIIPP) which shall contain
a listing of specific activities in the creative industries that can qualify for
incentives. The CIIPP shall be duly supported by the studies of existing and
prospective demands for such products and services in light of the level and
structure of income, production, trade, prices and relevant economic and
technical factors of the regions as well as existing facilities;

SECTION 14. Provision of Incentives to Investors in Enterprises from the
Creative Industries. — The following incentives shall be extended to enterprises
or firms which are part of creative industries:

a) The Board of Investments (BOI) shall classify creative industry enterprises
as preferred areas of investment under its Investment Priorities Plan (IPP)
pursuant to the CIIPP issued by the Council, subject to other pertinent
rules and regulations;

b) The Bureau of Customs shall exempt creative industry enterprises from
the payment of import duties for imported machines and equipment
subject to pertinent rules and regulations;

6

Expenses incurred shall be allowed as deductible expenses for income tax
purposes, subject to the provisions of the National Internal Revenue Code
of 1997, as amended: Provided, that the deduction shall only apply to the
taxable period, when the expenses were incurred;

d) Government owned, controlled and/or-supported financial institutions
shall give priority to creative industries in accessing credit assistance and
guarantee schemes;

The Technical Education and Skills Development Agency (TESDA) shall
provide talent and skills training for entrepreneurs, workers, trainees, and
stakeholders in the creative industries; and

e)


f) Commission on Higher Education (CHED) shall provide scholarships to
underprivileged but deserving college and post graduate students in
courses related to the creative industries.

SECTION 15. Additional Creative Content Rights. - In addition to the rights
and protection provided in R.A. No. 8293 otherwise known as the "Intellectual
Property Code of the Philippines", this Act shall endow ownership to the creator
of working drawings for industrial and fashion design; detailed sequence and
shot guides for movies and games, original character, background, and tool
designs, executable source codes for game and software; and such other forms
of creative content in their beta testing and development, pre-distribution, or
incomplete formats but capable of final production and reproduction.

SECTION 16. Engagement with the Private Sector. - The Council shall, at all
times, consult and coordinate with accredited business support organizations
and associations on the formulation and implementation of programs and
policies concerning the creative industries, including but not limited to the
creation of jobs and the granting of aid during national emergencies.

SECTION 17. Creation of Local Creative Industry Development Councils. -
All local government units, in coordination with the Council and the Department
of Interior and Local Government (DILG) shall establish a Local Creative Industry
Development Council (LCIDC). Each LCIDC shall coordinate with the Council for
the implementation of programs and projects at the local level. The other
functions and powers of the Local Councils shall include the following:

a) Support the Council in all of its functions as provided in Section 6 of this
Act;

Report to the Council any issues, developments, and the status of the
implementation of programs at the local level;

Regularly maintain and transmit to the Council a database of business
support organizations within the territorial jurisdiction of the LGU where
the LCIDC is located;

Formulate, plan, coordinate, implement, and assess policies, programs,
activities, and projects for the promotion and development of the locality’s
creative industries, in coordination with the Council; and

Such other duties and functions as the Council may direct.

b)

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d)

e)

TITLE V
MISCELLANEOUS PROVISIONS

SECTION 18. Annual Report. The Council shall submit to the President and to
both Houses of Congress, not later than the 30th of April of every year following
the effectivity of this Act, a report giving a detailed account of the effectivity and
implementation of this act, and recommended legislation where applicable and
necessary.


SECTION 19. Appropriations. - The amount of Five Billion Philippine Pesos
(Php5,000,000.000.00) shall be appropriated for the initial implementation of
the Act. Thereafter, such sums as may be necessary for the continued
implementation of the Act shall be included in the Annual General
Appropriations Act.

SECTION 20. Implementing Rules and Regulations. - Within sixty (60) days
from the effectivity of this Act, the DTI Secretary, in consultation with other
concerned government agencies, the industry representatives and non-
government organizations, shall promulgate the necessary implementing rules
and regulations for the effective implementation of this Act.

SECTION 21. Separability Clause. - If, for any reason, any portion or provision
of this Act shall be held unconstitutional or invalid, the remaining provisions not
affected thereby shall continue to be in full force and effect.

SECTION 22. Repealing Clause. - All laws, executive orders, proclamations,
rules, regulations and other issuances or parts thereof which are inconsistent
with the provisions of this Act are hereby repealed or amended accordingly.

SECTION 23. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved.