FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
Senate Bill No. 
INTRODUCED BY HON. MANNY VILLAR 
EXPLANATORY NOTE 
The musicality of Filipinos is hugely beyond question. First rate Filipino 
composers, singers and singing groups comprise a rich human resource for the 
country's cultural and economic development. 
Yet ironically, foreign music has dominated the Philippine music industry. In 
fact, 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 our own 
music, hence, the approval of this measure for the development and appreciation of 
Filipino music is urgently needed. 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
28 
29 
30 
FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
Senate Bill No. 
~~~~ 
INTRODUCED BY HON. MANNY VILLAR 
AN ACT 
TO PROMOTE 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: 
SECTION 1. Tifle. - This Act shall be known as the “Music Industry 
Development Act.” 
SECTION 2. 
Declaration of Policy. - In consonance with the Constitutional 
mandate to conserve, promote, and popularize the nation’s historical and cultural 
heritage and resources as well as its artistic creations, it is hereby declared to be 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 encourage and 
support the promotion of 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 
(b) To provide opportunities for the appropriate training and professional 
(c) To provide adequate mechanisms and support for the development and 
(d) To popularize and promote Filipino music in the country and abroad. 
SECTION 3. Definifion of Terms. - 
composition, rendition, or production; 
development of the musically talented; 
protection of the Filipino music industry; and 
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 language, or any other Philippine dialect. 
Performers - refer to actors, singers, musicians, dancers and other 
persons who act, sing, deliver, declaim play in, or otheiwise perform in 
any musical work/field. 
(3) Musical Score - refers to any exclusively visual fixation of sound for 
renditions, sound recording or broadcasting 
2 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
41 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
(4) Sound Recording - refers to any exclusively aural fixation of sound of a 
(5) Producer of Sound Records - refers to the person who, or the legal entity 
(6) Publication - refers to the issue of offering to the public of copies of a 
(7) Reproduction - refers to the making of a copy or copies of a recording or 
(8) Broadcasting Organization - refers to the proprietorship duly authorized to 
(9) Broadcasting - refers to the transmission for public reception of sounds or 
(IO) 
performance or recording. 
which first fixes the performance or recording 
sound recording or a musical score in reasonable quantity 
a musical score. 
engage in broadcasting 
of images and sounds 
(a) Performance - the broadcasting of musical works be it live or recorded 
(b) Mechanical- refers to the disc and tape reproduction of musical works 
(c) Synchronization - the coordination between musical works and visual 
images in motion pictures, television shows and advertising 
commercials 
Rights of the composer refer to: 
(d) Printing - the publication of works in musical and vocal arrangement 
SECTION 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, 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 of Filipino 
music though media; 
(c) To encourage the development of plans and programs, whether by 
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 right and privileges of the Filipino artists performing in the 
country, giving priority to local artists over foreign performers; 
(9 To monitor, mediate or arbitrate in the following cases, in accordance with 
guidelines it shall formulate: 
1. 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 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 (DepEd) 
3 


1 
2 
3 
4 
5 
6 
I 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
31 
38 
39 
40 
41 
42 
43 
44 
45 
46 
41 
48 
49 
50 
51 
52 
53 
54 
55 
56 
SECTION 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 DepEd. 
The Chairman of the Board shall be elected by the members from among 
themselves. 
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 term of 
three (3) years; and three (3) for a term of four (4) years from the date they qualify 
and assume office. 
Their successor shall be appointed by the President for uniform term of six 
(6), 
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 who he or she succeeds. 
Each member shall, for each day of meeting actually attended by him, 
receive from the general fund of the Council per diem of not more that Five hundred 
pesos (P500.00) and in no case shall the total per diem per month exceed One 
thousand five hundred pesos (P1,500.00). 
SECTION 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 
(9 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 the local performers. 
SECTION 7. Taxation and Foreign Recordings. - The Council shall have the 
authority to impose reasonable taxes on foreign musical recordings, the proceeds 
which shall go to the Fund. 
SECTION 8. Promotion and Popularization of Filipino Music. - All radio 
stations shall allot at least sixty percent (60%) of airtime to Filipino compositions, 
including background music, in every clockhour of a program with a musical format. 
4 


1 
2 
3 
4 
5 
6 
I 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
31 
38 
39 
40 
41 
42 
43 
44 
45 
46 
41 
48 
49 
50 
51 
52 
53 
54 
55 
56 
All musical/variety/cultural programs in all N stations shall also allot at least 
sixty percent (60%) of airtime to Filipino compositions, including background music, 
for every clockhour of showtimelairtime. 
All advertisements with music format over radio and TV stations shall likewise 
allot at least seventy-five percent (75%) of airtime to Filipino compositions. 
(75%) of playtime to Filipino music. 
Filipino music for every clockhour. These public places are specified as follows: 
All background music of Filipino films shall likewise allot at least seventy-five 
All public places shall be required to play at least sixty percent (60%) of 
(a) Moviehouses - during screening intervals 
(b) Parks/Plazas - music played through their public address systems 
(c) Hofels and ofher lodging places, resfauranfs - piped-in music or 
(d) Shopping Malls - music played through their public address systems, in 
(e) Public transportation by air, land and sea - piped-in music and recordings 
(9 Government offices and buildings - piped-in music 
(9) School, colleges and universities - music played through their public 
Enforcement and Implementation. - The enforcement and 
implementation of the above mentioned provisions shall be performed by 
government agencies such as DepEd, in coordination with the Department of 
Transportation and Communication (DOTC), Kapisanan ng mga Broadcasters ng 
Pilipinas (KBP), the Department of the Interior and Local Government (DILG), 
volunteer groups, civic organizations and deputized police agencies. 
SECTION 10. Penalfies. - In case of violation, the punishment or penalty is 
as follows: 
(a) Any franchise holder or operator/owner of radiorrV station which fail 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. 
(b) After due hearing the appropriate government agency shall cancel the 
Certificate of Registration and Authority to operate any radiorrV station in 
the event of three (3) repeated violations. 
SECTION 11. Government Incentives. - To develop the music industry, the 
entertainment fare 
shows and entertainment fare 
played 
address systems, in school programs, shows and ceremonies. 
SECTION 9. 
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 instrument needed for recordings and/or 
live performances, as long as they do not compete with local 
counterparts of the same quality, shall be reduced to fifty percent 
(50%); 
5 


I 
2 
3 
4 
5 
6 
I 
8 
9 
10 
1 1  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
31 
38 
39 
40 
41 
42 
43 
44 
45 
46 
41 
48 
49 
50 
51 
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 singerslmusicians in order to further 
develop their capabilities. 
Musical awards shall be given annually to both amateur and 
professional singerslartistslperformers and all other music-related 
performances and jobs, 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. 
SECTION 12. 
Promotions and Marketing. - 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. 
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. 
SECTION 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. 
SECTION 14. Appropriations. - 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. 
Repealing Clause. - All existing laws, decrees, executive 
orders and rules and regulations or parts thereof inconsistent with the provisions of 
this Act are hereby repealed, or modified accordingly. 
SECTION 16. Separability Clause. - If 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. 
SECTION 15. 
SECTION 17. Effectivity. -This Act shall take effect fifteen (15) days after its 
Approved, 
publication in at least two (2) newspapers of general circulation.