SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE-
S. No. 1707 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
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SEP 17 P5:13 
The promotion of local music is not only a cultural thrust for any nation but more 
so an economic and tourism sector investment. The development of a robust and 
dynamic local music scene will eventually merit the consideration of international 
audiences, producers, and artists. 
Moreoever, some cultural studies show that the 
wowth of local music is correlated to the growth or strengthening of local television 
shows and films. If so, then foreign investment into local productions and tourist interest 
in local settings will likewise increase. 
The Philippines, alongside several other countries, has adopted a policy on 
content quota for radio stations. By virtue of Executive Order No. 255, radio stations 
are required to playa minimum of four (4) original Filipino musical compositions every 
hour. Such an imposition of content quota has been shown to raise appreciation for 
local music and to propel innovation of and growth in local music. Unfortunately, E.O. 
255 is ineffective to attain these goals. First, due to the absence of proper monitoring 
and implementation thereof. Second, because of the small content quota required of 
radio stations. 
This proposed measure intends to provide greater impetus to the musical 
creativity and standards of performance for local composers, artists, and performers. 
The bill provides not only for higher contemt ql,Jota but, more importantly, a broader 
scope therefor. 
Further, musical incentives are proposed to favor local musicians. 
Finally, an implementing and monitoring agency is established for the purpose of 
upholding the Worthy ideals of the bill. 


1 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 1707 
) 
) 
) 
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'13 
SEP 17 P5:13 
RECEIVED BY: --r. 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
PROMOTING THE DEVELOPMENT OF THE PHILIPPINE MUSIC 
INDUSTRY BY ESTABLISHING A MUSICAL INDUSTRY DEVELOPMENT 
COUNCIL, IMPOSING CONTENT QUOTA ON PARTICULAR 
ESTABLISHMENTS, AND PROVIDING INCENTIVES TO THE LOCAL 
MUSIC INDUSTRY 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Short Title. - This Act shall be known as the "Music 
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Industry Development Act of 2013. " 
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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, and to attract investments into 
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local talents, it is the policy of the State to develop and enhance Filipino musical 
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creativity, to promote and cultivate the development of Filipino music; and to encourage 
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and support the promotion and propagation of Filipino music here and abroad. 
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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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SEC. 3. 
Definition of Terms. -
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(1) 
Original Pilipino Music (OPM) - refers to any musical composition, with 
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or without lyrics, originally created by a Filipino, whether the lyrics be in Filipino or in 
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another language. 
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(2) 
Performers - refer to actors, singers, musicians, dancers, and other 
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persons who act, sing, deliver, declaim, or otherwise perform in any musical work or 
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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 from 
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a 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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that first fixes the performance or recording. 
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(6) 
Publicatjon - 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 quantities. 
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(7) 
Reproduction - refers to the making of a copy or copies of a recording or 
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a musical score. 
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(8) 
Broadcasting Organization - refers to proprietorships 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 
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or of images and sounds. 
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(10) 
Rights of the composer refer to: 
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(a) 
Performance - refers to the broadcasting of musical works, 
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whether performed live or recorded. 
(b) 
Mechanical - refers to disc and tape reproduction of musical works. 
(c) 
Synchronization - refers to the coordination between musical 
works and visual images in motion pictures, television shows, and 
advertising commercials. 
(d) 
Printing - refers to the publication of works in musical or vocal 
arrangement. 
SEC. 4. 
Musical Industry Development Council. - To achieve the 
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objectives of this Act, there is hereby created a Music Industry Development Council, 
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hereafter 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 
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means 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 music through 
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media; 
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(c) 
To encourage the development of plans and programs, whether by the 
private Or govemment sectors, for the identification, selection, training and support of 
musically gifted children; 
(d) 
To devise a system of payment of royalties that will guarantee that Filipino 
musicians receive a minimum amount of royalty that will adequately compensate him or 
her; 
(e) 
To promote the rights and privileges of Filipino artists performing in the 
country, giving priority to local artists over foreign performers; 
(f) 
To monitor and mediate or arbitrate, as the need may arise, the following 
cases, in accordance with guidelines to be formulated therefor: 
(g) 
1) 
Infringement of copyright and neighboring rights of whatever. nature 
or character; 
2) 
3) 
Controversies arising out of royalty rates, license schemes, 
compulsory licenses and relations between and among intellectual 
property 
creators, 
users, 
publishers. 
collecting 
societies, 
performers, producers of sound recordings and broadcasting 
organization·s; 
Controversies 
involving 
intellectual 
property 
in 
music, 
its 
assignment or transfer, or those involving licenses, whether 
exclusive or non-exclusive; 
To accept donations, grants, or contributions and to undertake fundraising 
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activities and administer the funds solicited thereat, for the attainment of the objectives 
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of this Act; and 
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(h) 
To submit an annual report of its activities as well as recommendations to 
the National Telecommunications Commission and such other concerned agencies as 
may be determined through implementing rules and regulations. 
SEC. 5. 
Board of Directors. - 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 National Telecommunications 
Commission. 
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The Chairman of the Board shall be elected by the members from amongst 
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themselves. 
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The first members of the Board shall be appointed by the President for a period 
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corresponding to the following staggered terms: three (3) members to serve for a term 
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of two (2) years; three (3) members to servr for a term of three (3) years; and three (3)" 
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members to serve for a term of four (4) years from the date that they qualify and 
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assume office. 
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Their successors shall be appointed by the President for a uniform term of six (6) 
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years: Provided that any person elected by the Board to fill a vacancy shall only serve 
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for the unexpired term of the member succeeded. 
II 
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SEC. 6. 
Promotions and Marketing Bureau. - There shall be created a 
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Promotions and Marketing Bureau, which shall be an attached bureau under the 
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Council, for the purpose of promoting and marketing local talents both in the local and 
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international market. As such, the Bureau shall closely coordinate with the Department 
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of Foreign Affairs and the Department of Tourism. 
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The Bureau's main functions shall be: 
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(a) 
To determine, adopt, and implement the best method and means for 
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Filipino artists and performers to penetrate the international market; 
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(b) 
To disseminate to all Filipino artists and performers, as far as practicable, 
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information on national and international competitions, including the mechanics and 
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processes involved in achieving national and international success; 
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(c) 
To develop mechanisms whereby tourists and other foreigners may be 
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exposed to Filipino music and musical performances; and 
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(d) 
To coordinate with various producers, agents, and talent directors, both in 
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the local and international market, with the goal of having local talents engaged by 
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them. 
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SEC. 7. 
Equity. - Equity, otherwise known as the preferential right of local 
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performers over foreign performers, shall be given to local performers, producers of 
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sound recordings, and all others involved in the musiC industry. 
Further, foreign 
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performers shall be required to engage local performers as front acts whenever 
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performnces or concerts are scheduled to be held within the Philippines. 
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An equity fee, which shall be in such amount as may be determined by the 
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Council, shall be charged against foreign performers or workers for each performance 
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or show: Provided, That the fee 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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1 
(c) 
those who are sponsored or sent by counterpart cultural organizations; 
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(d) 
those who perform for the benefit of Filipino atrists' organizations; 
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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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that shall be utilized primarily for the benefit of local performers and shall be 
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administered and managed by the Council in accordance with the implementing rules 
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and regulations to be promulgated pursuant hereto. 
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SEC. 8. 
Content QUota. - All radio stations shall allot at least twenty five 
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percent (25%) of their airtime to the playing of Filipino musical compositions, which shall 
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be computed per radio program with a musical format and shall include the time when 
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Filipino musical compositions are playing as bed or background music. 
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All musical, variety, or cultural programs of all television stations shall also allot at 
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least twenty five percent (25%) of their airtime to Filipino musical compositions, which 
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shall be computed in the same manner. 
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All producers of advertisements that have a musical format, which are broadcast 
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over radio or television stations, shall ensure that at least thirty five percent (35%) of the 
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advertisement's airtime uses Filipino musical compositions. 
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Producers of Filipino films shall ensure that at least thirty five percent (35%) of 
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the song choices or musical scores used in Filipino movies are Filipino music. 
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The following public places shall allot at least twenty percent (20%) of every 
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clockhour of the following activities to the playing of Filipino I)lusic: 
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(a) 
Moviehouses shall comply with the content quota requirement for mOsic 
played during screening intervals; 
(b) 
Parks or plazas shall comply with the content quota requirement for music 
played over their public address systems; 
(c) 
Hotels, lodging places, and restaurants lIhali comply with the content 
quota requirement for piped-in music or entertainment fare; 
(d) 
Shopping malls shall comply with the content quota requirement for music 
played over their public address systems, for music integrated into shows played being 
played for mall guests, and for music played as entertainment fare; 
(e) 
Public transportation systems, whether by land, air, or sea shall comply 
with the content quota requirement for piped-in music and (ecordings played; 
(f) 
Government offices and buildings shall comply with the content quota 
requiremnt for piped-in music; and 
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(g) 
Schools, colleges, and universities shall comply with the content quota 
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requirement for music played through their public address systems, in school programs, 
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shows, or ceremonies. 
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Any franchise holder or operator, or owner of a radio or television station who 
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fails to comply with the content quota requirement shall be fined in the amount of 
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Twenty Thousand Pesos (Php 20,000.00) per violation. Repeated violations of not less 
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than three (3) times within a short interval of time shall be ground for the cancellation or 
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suspension, upon the hearing and determination of the apprQpriate government agency,: 
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of the Certificate of Registration and Authority to continue operating the concerned radio 
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or television station. 
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SEC. 9. 
Incentives to the Local Music Industry. - To develop the music 
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industry, the following incentives shall be provided for the benefit of local artists: 
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(a) 
Formation of Regional Recording Studios. - Regional recording studios to 
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beadministered by the Council shall be established to provide equal access to recording 
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studios for all local artists regardless of popularity. 
(b) 
Tax Relief - The following tax incentives shall be granted for the benefit of 
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the local music industry: 
(c) 
1 ) 
Taxes on imported musical instruments, as long as the same do not 
compete with local counterparts of the same make and quality, 
shall be reduced by fifty percent (50%); 
2) 
3) 
Taxes on imported musical equipment needed for the purpose of 
making recordings or for the conduct of live performances, as long 
as the same do not compete with local counterparts of the same 
make and quality, shall be reduced by fifty percent (50%); 
Taxes on raw materials, whether local or imported, used for the 
purpose of making recordings shall be reduced by twenty percent 
(20%). 
Grants, Awards, or Scholarships ~ Scholarship grants shall be created for 
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both amateur and professional singers or musicians in order to develop their takent and 
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skills. 
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Musical awards shall be given annually in a program to be organized by the 
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Council, in coordination with concerned agencies and entities, and which shall be 
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designated as the "Parangal sa Musikang Pilipino': for the purpose of recognizing both 
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amateur and professional singers, artists, or performers, and all other music-related 
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performances and jobs, at the provincial, regional, and national levels. 
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SEC. 10. 
Taxation of Foreign Recordings. - The Council shall have the 
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authority to impose reasonable taxes on foreign musical recordings played, sold, or 
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otherwise introduced. within Philippine territory, the proceeds of which shall be 
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integrated into the Fund. 
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seC. 11. 
Tax Exemption. - All donations, contributions, subsidies, or aids 
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given or made to the Council shall be deemed allowable deductions from the income of 
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donors or grantors for income tax purposes. 
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SEC. 12. 
Appropriations. 
The 
sum 
of 
Five 
Million 
Pesos 
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(Php5,OOO,OOO.OO) is hereby appropriated for the initial organization of the Council. 
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Thereafter, the Council shall submit a proposed annual budget for inclusion in the 
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annual General Appropriations Act. 
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SEC. 13. 
Implementing Rules and Regulations. - The. Musical Industry 
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Development Council 
in 
coordination 
with 
the 
National Telecommunications 
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Commission, the Department of Foreign Affairs, the Department of Tourism, and other 
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concerned government agencies, shall promulgate the rules and regulations necessary 
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for the implementation of this Act. 
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SEC. 14. 
Repealing Clause. - All existing laws, decrees, executive orders, 
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rules and regulations, or parts thereof not consistent with the provisions of this Act are 
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hereby repealed or mOdified accordingly. 
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SEC. 15. 
Separability Clause. - Should any part, section, or provision of 
this Act be held unconstitutional or invalid, other parts or provisions hereof which ·are not 
affected thereby shall continue to be in full force and effect. 
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SEC. 16. 
Effectivity Clause. - This Act shall take effect fifteen (15) days 
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after its publication in at least two (2) newspapers of general circulation. 
Approved, 
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