FOURTEENTH CONGRESS OF THE REPUBLIC) 
First Regular Session 
OF THE PHILIPPINES 
t-l 
:.IC*< 
1 : I  
Introduced by Senate President Manny Villar 
EXPLANATORYNOTE 
Creative industries are considered one of the fastest growing sectors in 
the global economy today. In fact, they contribute significantly to the Gross 
Domestic Product (GDP) of many developed countries as they capitalized on 
their cultural and creative industries to enhance and grow their economies. 
Macau, for example, 
established a Center for Creative Industries to assist in 
all aspects of their development. Hong Kong adopted an action-oriented 
strategies for their promotion with the active participation of the business 
sector. Singapore developed a “MediaLab” as one of their showcase projects for 
creative industries. 
Japan established 
the “Creative City”, an urban 
revitalization project which became popular worldwide. 
Although the Philippines has the potential to develop new areas of wealth 
and employment as it is rich in cultural heritage and inexhaustible pool of 
talents, the country still remain a marginal player in the global market. While 
we produce world-renowned artists, singers, musicians, dancers, designers, 
among others, still the contribution of creative industries to our economy has 
remained insignificant. 
Likewise, due to lack of incentives, financial, 
educational, infrastructure and technology support from the government and 
business sector, our local industries established through the creativity and 
innovativeness of Filipino entrepreneurs are not yet fully developed. 
Section 9, Article I1 of the Constitution which provides, among others, 
that “the State shall promote a just and dynamic social order and free the 
people from poverty through policies that provide and promote full 
employment, a rising standard of living and an improved quality of life for all”, 
This bill, in consonance with the above-quoted provision, 
seeks to 
promote creative industries in the country by 
establishing the Creative 
Industries Development Council that shall provide an environment conducive 
to the enhancement and stimulation of creativity and innovative endeavors 
among the citizenry. The Council, shall, among others: provide high quality 
trainings for skills and creativity development; formulate measures that shall 
stimulate creativity and innovations among the ,youths to ensure long term 
supply of creative talents; conduct a comprehensive mapping of individuals or 
groups involved in creative industries; design practical tools to assist individual 
creators and creative communities to effectively use and diversify their 
products to be locally and globally competitive. 
The proposed measure likewise seeks to address the problem of selling 
the products of creative industries by mandating the local government units to 
actively participate in the promotion of these industries in their respective 


actively participate in the promotion of these industries in their respective 
locality through the assistance of the local branches of the Department of 
Trade and Industry (DTI) nationwide. In order to avail of the incentives 
provided for under this measure like tax exemptions, financing assistance, 
among others, creative industries are required to register with their respective 
Municipal and City Treasurer for the issuance of a Certificate of Authority. 
Nurturing and exploitation of creative industries in our country through 
an effective national policy could really contribute to job creation, income 
generation and poverty alleviation. 
In view of the foregoing, immediate passage of this bill is recommended. 
Senat r 
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FOURTEENTHCONGRESSOFTHEREPUBLIC) 
OF THE PHILIPPINES 
1 
I
,
 
First Regular Session 
1 
S.B. NO. 
Introduced by Senate President Manny Villar 
AN ACT 
TO PROMOTE THE CREATIVE INDUSTRIES IN THE PHILIPPINES BY 
ESTABLISHING THE CREATIVE INDUSTRIES DEVELOPMENT COUNCIL, 
DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING FUNDS 
THEREFOR AND FOR OTHER PURPOSES 
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 "Creative 
Industries Act of 2008". 
SEC. 2. Statement of Policy. - It is hereby declared the policy of the 
State to recognize the indispensable role of the private sector, encourage 
private enterprises, and provide incentives to needed investments. The State 
shall also stimulate and encourage the pursuit of creative endeavors by its 
citizens. Towards these ends, the government shall exert efforts to strengthen 
the country's creative industries through an environment conducive to the 
development of creativity, ingenuity and innovativeness and geared towards a 
sustainable industrial growth. 
SEC. 3. Definition of Terms.- For purposes of this Act, the following 
terms shall mean: 
a) 
Creativity - the ability to bring into existence something new, 
whether it be an artistic object or form, a solution to a problem or a method or 
device; the creation of a work of art bringing about a new combination of 
elements pre-existing in the medium. 


b) 
Creative industries - those which have their origin in individual 
for wealth and job 
creativity, skill and talent and which have a potential 
creation through the generation and exploitation of intellectual property; 
c) 
Creative Clusters - pooling together resources into networks and 
partnerships of creative enterprises or industries to cross-stimulate activities, 
boost creativity and realize economies of scale; and 
d) 
Mapping - identifying creative industry branches of individuals or 
groups that have potential for growth, their location in the country or region, 
and to quantify their potential for inducing socio-economic growth; 
SEC. 4. 
The 
Creative Industries Development Council. - 
The 
Creative Industries Development Council, 
hereinafter referred to as the 
Council, is hereby established to provide a clearly defined direction for setting 
an environment for 
sustainable growth of creative industries through ' the 
utmost utilization of the skills, talents and capabilities of the country's human 
resources. It shall assist the creative industries by helping them achieve their 
full economic potential. 
SEC. 5. Purposes and objectives of the Council. - The Council shall 
have the following purposes and objectives: 
1. 
To develop greater awareness and understanding of the creative 
industry and its contribution to the Philippine economy and to 
formulate strategies on how the government, business and private 
sectors may work together to help develop and promote the same; 
To broaden knowledge and visibility of the products of creative 
industries by providing a showroom for them in a suitable and 
well- located environment; 
To create more employment through the development of creative 
industries in the countryside; 
2. 
3. 
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4. 
To provide high quality trainings for skills and creativity 
development; and 
5. 
To enhance awareness of intellectual property rights, thus, 
strengthen the foundation for successful creative industries. 
SEC. 6. Powers and Functions of the Council. - The Council shall 
have the following powers and functions: 
a) Formulate a national policy for the promotion and enhancement of 
creative industries in the country; 
b) 
Identify creative industries in all localities by conducting 
a 
comprehensive mapping to determine the kind of industry and the individuals 
or groups involved therein and the strategies for their promotion and 
development; 
c) Conduct seminars and thorough research study of identified creative 
industries to establish a stronger connection between culture, education and 
training; 
d) Undertake information dissemination on the economic, social and 
on the creative industries to 
cultural impact of intellectual property rights 
avoid duplication and conflict of interest among creative enterprises; 
e) Design and commission practical tools to assist individual creators 
and creative communities to effectively use and diversify their products to be 
locally and globally competitive; 
f) 
Collaborate with public and private funding partners for creative 
industry-related activities, such as the Land Bank of the Philippines, the Small 
Business Guarantee Finance Corporation 
(SBGFC) and other lending 
institutions that shall implement technical cooperation projects in the field of 
creative industries; and 
g) Ensure long term supply of creative talents by formulating measures 
to stimulate creativity and innovation among the youth; and 
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h) Conduct a regular Trade, Craft and Industrial Expositions once a year 
to showcase the products of creative industries. 
SEC. 7. Composition of the Council. - The Council shall be composed 
of the Secretary of the Department of Trade and Industry (DTI), as Chairman, 
the Secretary of the Department of Science and Technology (DOST) as Vice- 
Chairman, and the following as members : 
6. 
7. 
Undersecretary of the Department of Labor and Employment 
Director-General of the Intellectual Property Office (IPO); 
(DOLE); 
8. 
Undersecretary of the Department of Education (DepEd); 
9. 
Chairman of the Commission on Higher Education (CHED); 
10. Director-General of the Technical Education and Skills Development 
Authority (TESDA); 
1 1. Commissioner of the National Heritage Commission (NHC; and 
12. Director-General of the Technology and Livelihood Research Center 
(TLRC). 
13. A representative from the Center for International Trade, Expositions 
and Missions (CITEM)); 
14. A representative from the Design Center Philippines; 
15. A representative of the 
16. A representative of the Indie Films Association of the 
Philippines. 
Film Academy of the Philippines; and 
SEC. 8. Domicile of the Council. - The principal office of the Council 
shall be established in Metro Manila, Philippines. It shall have branches or 
offices in every provincial and regional office of the DTI, as its operations 'and 
activities may require. 
SEC. 9. 
Mapping Creative Industries. - The Council, through the 
respective DTI regional and provincial offices, shall conduct 
comprehensive 
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mapping in the various localities nationwide to determine the sustainable 
creative industries therein that may be promoted and assisted by relevant 
government agencies. 
SEC. 10. Registration of Creative Industries. - All creative industries 
nationwide shall be required to register with their respective municipal or city 
Treasurer who shall issue a Certificate of Authority to avail of the benefits 
provided for under this Act. The application for the issuance of such certificate 
shall be processed within fifteen (15) working days upon submission of 
complete documents, after which, it shall be deemed registered. Said certificate 
shall be effective for a period of two (2) years, renewable for a period of tw6 (2) 
years for every renewal. Provided, however, That minimal reasonable fees 
and charges not exceeding One Thousand Pesos (P1,OOO) shall be imposed on 
creative industries to defray the administrative costs of 
registering and 
monitoring. 
Provided, further, That the local government units (LGUs) may establish 
a One-Stop-Creative Industries Registration Center under the Office of the 
Treasurer and appoint a Creative Industries Registration Officer to handle 
the efficient registration and processing of permits/licenses of creative 
industries. Provided, finally, That the LGUs shall make a periodic evaluation 
of the creative industries financial status for monitoring and reporting 
purposes. 
SEC. 11. 
Submission of Registration Records and Evaluation 
Reports to DTI Branch Offices. - The municipal and city Treasurer shall 
submit the registration records and evaluation reports of creative industries to 
their respective DTI branch office. 
SEC. 12. Creative Industries Linkages with Educational System. - 
To ensure a continuous supply of creative talents and to stimulate creativity 
and innovation among students at all levels of education, the Council, through 
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the DepEd and CHED, shall formulate measures to establish a stronger 
connection between culture, education and training and to harness potentials 
of the youths. 
SEC. 13. Identified Creative Industries. - The creative industries in 
the Philippines being an emerging and dynamic sector of the economy shall 
include the following: 
1. Advertising (print and mass media); 
2. Printing and Literature; 
3. 
4. Visual Arts; 
5. Crafts, Design and Architecture; 
6. Audiovisual and news media; 
7. Cultural Heritage; and 
8. Cultural Activities. 
SEC. 14. 
Technology Transfer, Production and Management 
Training and Marketing Assistance. - To fully develop and promote the 
creative industries in the country, the amount of 
Fifty Million Pesos 
(P50,000,000.00) shall be set up for technology transfer, production and 
management training and marketing assistance for qualified identified creative 
industries nationwide. 
Music and the Performing Arts; 
SEC. 15. Annual Summit. - 
The Council, in coordination with the 
Department of Trade and Industry, shall 
hold a regular annual National 
Manpower Summit to. promote and strengthen the sustainability of all creative 
industries in the country. 
SEC. 16. Tax Incentives. - All registered creative industries shall be 
exempt from tax for income arising from the operations of the enterprise. They 
shall only be charged a minimal one (1%) percent of their income as a local 
tax by their respective local government units (LGUs). 
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SEC. 17. Credit Facilities. - Upon approval of this Act, the Land Bank 
of the Philippiiles (LBP), the Small Business Guarantee and Finance 
Corporation (SBGFC), and the People’s Credit and Finance Corporation (PCFC) 
shall set up a special credit window that shall provide the financing needs of 
qualified creative industries mentioned in Section 1 1 hereof. 
SEC. 18. Annual Report. - The Council shall submit an annual report 
to Congress on the status of the implementation of this Act not later than 
December 31 of each year. 
SEC. 19. Implementing Rules and Regulations. - The Council shall 
issue and promulgate the necessary implementing rules and regulations within 
thirty (30) days upon the approval of this Act. 
SEC. 20. 
Repealing Clause. - All laws, rules and regulations or parts 
thereof, inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
SEC. 21. Separability Clause. - If any part, section or provision of this 
Act shall be held invalid or 
unconstitutional, no other part, section or 
provisions thereof shall be affected thereby. 
SEC. 22. 
Effectivity. - This Act shall take effect after fifteen (15) days 
(2) newspapers of general 
following its complete publication in at least two 
circulation. 
Approved, 
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