FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 961 
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Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
Music is part of our cultural heritage. Artistic blood run through the veins of each 
and every Filipino. Through the years, our very own musical composers, singers and 
singing groups have taken center siage in the international music scene, earning world 
wide recognition for themselves and for the country. 
However, foreign music has continued to dominate the Philippine music industry. 
Greater exposure to and preference for foreign music made Original Pilipino Music 
(OPM) a mere second choice among the people. Because of this it became necessary 
. for the President to issue Executive Order No. 255, requiring radio stations to playa 
minimum of four (4) original Pilipino musical composition per hour. Despite this order, 
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 their own music. It 
aims to make the market relatively more favorable to OPM. The objective is to provide a 
greater impetus to the musical creativity and excellent performance of our own 
composers, artists and performers. 
The approval of this measure for the development and appreciation of Filipino 
music is urgently needed. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 961 
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Introduced by Senator Manuel "Lito" M. Lapid 
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. 
Short Title. - This Act shall be known as the "Music 
Industry Development Act of 2010." 
SEC. 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 and 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 
composition, rendition, or production; 
(b) 
To provide opportunities for the appropriate training and professional 
development of the musically talented; 
(c) 
To provide adequate mechanisms and support for the development and 
protection of the Filipino music industry; and 
(d) 
To popularize and promote Filipino music in the country and abroad, 
SEC. 3. 
Definition of Terms. -
(1) 
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 languages, or any other Philippine dialect. 
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(2) 
Performers - refer to actors, singers, musicians, dancers, and other 
persons who act, sing deliver, declaim, play in, or otherwise perform in any musical 
work / field. 
(3) 
Musical Score - refers to any exclusively visual fixation of sound for 
renditions, sound recording, or broadcasting. 
(4) 
Sound Recording - refers to any exclusively aural fixation of sound of a 
performance or a recording. 
(5) 
Producer of Sound Records - refers to the person who, or the legal 
entity which first fixes the performance or recording. 
(6) 
Publication - refers to the issue or offering to the public of copies of a 
sound recording or a musical score i'n reasonable quantity. 
(7) 
Reproduction - refers to the making of a copy or copies of a recording or 
a musical score. 
(8) 
Broadcasting Organization - refers to proprietorships duly authorized to 
engage in broadcasting. 
(9) 
Broadcasting - refers to the transmission for public reception of sounds 
or of images and sounds. 
(10) 
Rights of the compose refer to: 
(a) 
Performance - the broadcasting of musical works be it live or 
recorded. 
(b) 
Mechanical - refers to 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. 
(d) 
Printing - the publication of works in musical or vocal arrangement. 
SEC. 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. 
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 through 
media; 
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(c) 
To encourage the development of plans and programs, whether by the 
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 rights and privileges of the Filipino artists performing in the 
country, giving priority to local artists over foreign performers; 
(f) 
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; 
(g) 
To accept donations, grants or contributions and to undertake fundraising 
activities and administer the funds solicited thereat, for the attainment of the objectives 
of this Act; and 
(h) 
To submit an annual report of its activities as well as recommendations to 
the Department of Education (DepEd). 
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 Department of Education (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 a term of 
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three (3) years; and three (3) for a term of four (4) years from the date they qualify and 
assume office. 
Their successors shaJJ be appointed by the President for a uniform term of six (6) 
years, 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 whom he/she succeeds. 
SEC. 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 
(f) 
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 local performers. 
SEC. 7. 
Taxation of Foreign Recordings . . The Council shall have the 
authority to impose reasonable taxes on foreign musical recordings, the proceeds of 
which shall go to the Fund. 
SEC. 8. 
Promotion and Popularization of Filipino Music. - All radio 
stations shall allot at least sixty percent (60%) of airtime to Filipino musical 
compositions, including background music, in every c1ockhour of a program with a 
musical format. 
All musical/variety / cultural programs in all TV stations shall also allot at least 
sixty percent (60%) of airtime to Filipino compositions, including background music, for 
every clockhour of showtime / airtime. 
All advertisements with music format over radio and TV stations shall likewise 
allot at least seventy-five percent (75%) of airtime to Filipino compositions. 
All background music of Filipino films shall allot at least seventy-five percent 
(75%) of playtime to Filipino music. 
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All public places shall be required to play at least sixty percent (60%) of Filipino 
music for every clockhour. These public places are specified as follows: 
(a) 
Moviehouses -- during screening intervals; 
(b) 
Parks I Plazas -- music played through their public address systems; 
(c) 
Hotels and other lodging places, restaurants --
piped-in music or 
entertainment fare; 
(d) 
Shopping Malls -- mus,ic played through their public address systems, in 
shows and entertainment fare: 
(e) 
Public transportation by air, land and sea -- piped-in music and recordings 
played; 
(f) 
Government offices and buildings -- piped-in music; 
(g) 
Schools, colleges, universities -- music played through their public 
address systems, in school programs, shows, or ceremonies. 
SEC. 9. 
Enforcement and Implementation. -
The enforcement and 
implementation of the above mentioned provision shall be performed by government 
agencies such as the Department of Education (DepEd), in coordination with the 
Department of Transportation and Communications (DOTC), Kapisanan ng mga 
Broadcasters ng Pilipinas (KBP), the Department of Interior and Local Government 
(DILG), volunteer groups, civic organizations and deputized police agencies. 
SEC. 10. 
follows: 
Penalties. - In case of violation, the punishment or penalty is as 
(a) 
Any franchise holder or operator I owner of a radio I TV station which fails 
to play at least sixty percent (60%) OPM during airtime shall be fined in the amount of 
Twenty Thousand Pesos (Php 20,000.00) per violation. 
(b) 
After due hearing, the appropriate government agency shall cancel the 
Certificate of Registration and Authority to operate any radio I TV station in the event of 
three (3) repeated violations. 
SEC. 11. 
Government Incentives. - To develop the music industry, the 
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: 
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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 I(ercent (50%); 
2) 
Taxes on imported musical equipment needed for recordings 
andfor live performances, as long as they do not compete with local 
counterparts of the same quality, shall be reduced by fifty percent 
(50%); 
3) 
Taxes on raw materials used in recording, whether it be local or 
imported, shall be reduced by twenty percent (20%). 
(c) 
Grantsf Awards f Scholarships - Scholarship grants shall be created for 
both amateur and professional singers f musicians in order to further develop their 
capabilities. 
Musical awards shall be given annually to both amateur and professional singers 
f artists I performers and all other music-related performances and jobs, at the 
provincial, regional and national levels, to be called the "Parangaf sa Musikang Pilipino. 
The Council, in coordination with agencies and entities involved in the promotion 
of Filipino music, shall organize these annual events. 
SEC. 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. 
SEC. 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. 
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SEC. 14. 
Appropriations. - Out of any funds in the National Treasury not 
otherwise appropriated, the sum of Five Million Pesos (Php 5,000,000.00) 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. 
SEC. 15. 
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. 
SEC. 16. 
Separability Clause. - In 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. 
SEC. 17. 
Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved, 
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