FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
. 
S.B. No.1064 
EXPLANATORY NOTE 
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 (GOP) 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 strategy for their promotion with the active 
participation of the business sector. Singapore developed a "Media Lab" 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 inex,haustible pool of talents, the country 
still remain a marginal player in the global market.' While we produce world-renowned 
artists, singers, musicians, dancers, designers, a'Tlong others, still the contribution of 
creative industries to our economy has remained ipsignificant. 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 II 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. 
, 
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FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 1064 
INTRODUCED BY SEN. MANNY VILLA'R 
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". 
SECTION 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 cOUlltry'S creative industries through an 
environment conducive to the development of creativity, ingenuity and innovativeness 
and geared towards a sustainable industrial growth. 
SECTION 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 creativity, skill and 
talent and which have a potential for wealth and job 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 bra~ches of individuals or groups that 
have potential for growth, their location in the country or region, and to quantify 
their potential for inducing socia-economic growth; 
SECTION 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. 
SECTION 5. Purposes and objectives of the Council. - The Council shall have 
the following purposes and objectives: 
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a) 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; 
b) To broaden knowledge and visibility of the products of creative industries by 
providing a showroom for them in a suitable and well- located environment; 
c) To create more employment through the development of creative industries in 
the countryside; To provide high quality ,trainings for skills and creativity 
development; and 
d) To enhance awareness of intellectual property rights, thus, strengthen the 
foundation for successful creative industries. 
SECTION 6. Powers and Functions of the Cou'ncil. - 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 a'ld 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 cultural impact 
of intellectual property rights on the creative industries to 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 
h) Conduct a regular Trade, Craft and Industrial Expositions once a year to 
showcase the products of creative industries. 
SECTION 7. Composition of the Council. - The Council shall be composed of the 
following; 
a) Secretary of the Department of Trade and Industry (DTI), as Chairman; 
b) Secretary of the Department of Science· and Technology (DOST) as Vice-
Chairman; Undersecretary of the Department of Labor and Employment 
c) Director-General of the Intellectual Property Office (IPO); 
d) Undersecretary of the Department of Labor (DOLE); 
e) Undersecretary of the Department of Education (DepEd); 
f) Chairman of the Commission on Higher Education (CHED); 
g) Director-General of the Technical Education and Skills Development Authority 
(TESDA); 
h) Commissioner of the National Heritage Commission (NHC); 
i) 
Director-General of the Technology and Livelihood Research Center (TLRC); 
j) A representative from the Center for International Trade, Expositions and 
Missions (CITEM»; 
k) A representative from the Design Center Philippines; 
I) 
A representative of the Film Academy of the Philippines; and 
m) A representative of the Indie Films Association of the Philippines. 
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SECTION 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. 
SECTION 9. Mapping Creative Industries. - The Council, through the 
respective DTI regional and provincial offices, shall conduct comprehensive mapping in 
the various localities nationwide to determine the sustainable creative industries therein 
that may be promoted and assisted by relevant government agencies. 
SECTION 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 (P1,000) 
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. 
SECTION 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. 
SECTION 12. Creative Industries Linkages with Educational System. -
To ensure a continuous supply of creative talerts and to stimUlate creativity and 
innovation among students at all levels of education, the Council, through the DepEd 
and CHED, shall formulate measures to establish a stronger connection between 
culture, education and training and to harness potentials of the youths. 
SECTION 13. Identified Creative Industries. - The creative industries in the 
Philippines being an emerging and dynamic sector of the economy shall include the 
following: 
a. Advertising (print and mass media); 
b. Printing and Literature; 
c. Music and Performing Arts 
d. Visual Arts; 
e. Crafts, Design and Architecture; 
f. 
Audiovisual and news media; 
g. Cultural Heritage; and 
h. Cultural Activities. 
SECTION 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,OOO,OOO.OO) shall be set up for 
technology transfer, production and management training and marketing assistance for 
qualified identified creative industries nationwide .. 
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SECTION 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. 
SECTION 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 percent (1%) of their income as a local tax by their respective 
local government units (LGUs). 
SECTION 17. Credit Facilities. - Upon approval of this Act, the Land Bank of the 
Philippines (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 13 hereof. 
SECTION 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. 
SECTION 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. 
SECTION 20. Separability Clause. - If any part or provision of this Act is held 
unconstitutional or invalid, the other parts or provisions hereof which are not affected 
thereby shall continue to be in full force and effect. 
SECTION 21. Repealing Clause. - All laws, orders, rules or regulations which 
are inconsistent with or contrary to the provisions, of this Act are hereby amended or 
repealed accordingly. 
SECTION 22. EFFECTIVITY -This Act shall, take effect fifteen (15) days after its 
publication in at least two (2) national newspapers 6f general circulation. 
Approved, 
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