‘NTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
4692

House Bill N

Introduced by Representative VICTOR A. YAP

EXPLANATORY NOTE

By year 2030, the Philippines aims to become the leading creative economy in Southeast
Asia through developing the creative industries of advertising, film, animation, game
development and design. Pursuant to this, the Department of Trade and Industry (DTI), in close
coordination with the Creative Economy Council of the Philippines (CECP), a non-government
organization whose purpose is to help the Philippines become a globally competitive creative
economy, has been formulating the country’s Creative Economy Roadmap which furthers the
cultivation of creative industries that provide major contributions to the country’s Gross
Domestic Product (GDP) and which acts as an important source of trade and investment
opportunities especially for Micro, Small and Medium Enterprises (MSMEs).

According to the United Nations Conference on Trade and Development, the Philippines
exported $915.45 million worth of creative goods in 2014, nearly 18% higher than the $775.83
million exported in 2005. However, despite the increasing contribution of the creative industries
‘o the economy, Filipino creators are often undercompensated due to the lack of appreciation to
their work and inadequate support systems coming from government,

Article XIV, Section 10 of the Constitution provides that the State shall give priority to
research and development, invention, innovation, and their utilization, while Section 13 of the
same Article declares that the State shall protect and secure the exclusive rights of scientis
inventors, artists, and other gifted citizens to their intellectual property and creations, particu
when beneficial to the people

In line with these Constitutional provisions, this bill seeks to establish a Creative
Industries Development Council to formulate and implement the development and promotion of
original Filipino content and the protection and commercialization of Filipino intellectual
property. This measure likewise seeks to stimulate the Philippine Creative Industry by
protecting, securing and promoting the rights of our scientists, inventors, and other gifted citizens
over their creations, as well as providing them formal and institutional support and assistance
from government.

In view of the foregoing, the immediate passage of this bill is earnestly sought



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EIG fH CONGRESS. )
OF THE REPUBLIC OF THE PHILIPPINES — )
First Regular Session )

HOUSE OF REPRESENTATIVES.

House Bill No. 4692

Introduced by Representative Victor A. Yap

AN ACT
TO DEVELOP AND PROMOTE THE CREATIVE INDUSTRIES OF THE
PHILIPPINES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Short Title. This Act shall also be known as the "Creative Industries
Charter of 2019".

SEC. 2. Declaration of State Policy. - \t shall be the policy of the State to promote all
economic activities having their origin in creative skill and talent through the exploitation of
intellectual property, in pursuance of the Constitution's emphasis on technology, arts, and culture
Likewise, the Creative Industries Charter seeks to protect and secure the exclusive rights of
scientists, inventors, artists, and other gifted citizens to their intellectual property and creations.

In pursuit of encouraging and promoting a creative economy in the Philippines, this Act
seeks to develop and promote the creative industries to protect and strengthen the rights of
creative corporations, artists, content providers, and to establish a Creative Indust
Development Council that will ensure the implementation of this Act.

SEC. 3. Creative Industries, - These shail include the following,
Advertising and Marketing

Animation and Game Development

Architecture and Interior Design

Broadcast Arts including Film, Television, Radio and Photography
Information Technology, Software and Computer Services
Publishing,

Museums, Galleries and Libraries

Heritage Crafts and Activities, including Gastronomy
Music and Performing Arts

Visual Arts k. Product, Graphic and Fashion Design

Soe mene se

SEC. 4. Creative Industries Development Council (CIDQ). -There is hereby created a
Creative Industries Development Council (CIDC) that shall formulate and implement the
development and promotion of original Filipino content and the protection and
commercialization of Filipino intellectual property.


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The CIDC shall be composed of a Chairperson and four (4) permanent council members
who shall all be appointed by the President of the Philippines. They shall be Filipino citizens, at
least twenty-five (25) years of age, and of good moral character, Provided, That at least one (1)
permanent members shall be a member of the Philippine Bar, and at least two (2) members shall
be from the private sector creative industries

‘The Chairperson and Members shall serve for a term of three (3) years, subject to
reappointment for another three-year term. The first two (2) members shall be appointed for a
term of two (2) years and the other two (2) members for a term of one (1) year. Thereafter, their
successors shall be appointed for a term of three (3) years

SEC. 5. Powers and Functions of the Council. - The ‘Chairperson shall be chief Executive
officer of the CIDC and shall be assisted by four (4) permanent and full time members. The
Council shall have the following powers and functions,

a. To formulate and implement a National Creative Economy Development Plan, i
consultation with Department of Tourism (DOT), Department of Finance (DOF),
Department of Trade and Industries (DTI), National Commission for Culture and
the Arts (NCA), Cultural Center of the Philippines (CCP), National Historical
Commission of the Philippines (NHCP), Business Processing Association of the
Philippines (BPAP) and other creative business groups, the Commission on
Higher Education (CHED) through the state universities and colleges, private
schools, software designs, artists, cooperatives, game and software laboratories
and other stakeholders;

b. Coordinate with other agencies and entities of the government to ensure the
effective and efficient implementation of creative development programs;

¢. Formulate programs and projects to protect, preserve, develop, and acquire
historical, significant, and emerging creative properties and content;

d__ Ensure the enforcement of intellectual property laws, as well as, conduct research
for the inclusion of new technologies, design, storytelling, software and other
creative content;

€. Strengthen institutions involved in creative education and training;

f Support the training of a creative workforce in order to, expand employment
opportunities through scholarships, artists-in-residence programs, workshops
apprenticeship, networking events, and subsidized studios and living spaces,

g, Encourage investments in creative start-ups by granting of loans and seed capital,
financing equipment and tools, accessing tax incentives and providing other
subsidies;

h. Assist in the registration, patent, titling and such other legal procedures as would
exercise and monetize Filipino ownership over creative content;

i, Ensure the enforcement of Filipino intellectual property rights domestically and
overseas;

j. Encourage the production of events, activities, competitions, and other cultural
activities included in tourism, heritage and national park promotion programs;

k. Promote and market creative industry products, events, activities, and the cultural
heritage of the Philippines, both in the local and international market,


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|. Develop and sustain cooperative exchanges and partnerships, among, creative
entities, organizations, institutions and practitioners both in the Philippines and
abroad;

m, Promulgate rules, regulations and other issuances necessary in carrying out the
mandate, goals, plans and programs of the CIDC;

n, Exercise control and supervision, including disciplinary powers over officers
and employees of the CIDC in accordance with law; and

©. Such other functions, as may be deemed necessary for the development of a
Philippine Creative Economy

SEC. 6. Support to Creative Entrepreneurs. - \n consultation with all stakeholders and in
pursuance of the National Creative Industries Plan, the Council shall provide start-up capital,
facilitate preferential loan, subsidized rentals for studio and venue, collocation, and shared
workspaces, facilities and hardware, and such other forms of support as may be required by the
creative entrepreneurs, companies and artists.

SEC. 7. Additional Creative Content Rights. - In addition to the rights and protection
provided in R.A. No. 8293 otherwise known as the "Intellectual Property Code of the Philippines",
this Act shall endow ownership to the creator of working drawings for industrial and fashion
design; detailed sequence and shot guides for movies and games; original character, background,
and tool designs; executable source codes for game and software; and such other forms of creative
content in their beta testing and development, pre-distribution, or incomplete formats but capable
of final production and reproduction.

SEC. 8. Private Sector Participation. - The Council shall, at all times, consult closely
and coordinate with creative industry corporations, artists, content providers, schools, ev
managers and other stakeholders for the creation of jobs and employment for creative arti
entrepreneurs workers.

SEC. 9. Local Government Participation, - The Council shall work with the local
government units for the establishment of Local Creative Industry Councils based on the National
Creative Industry Plan data mapping to include Quezon City as the national broadcast center,
game development and software hubs such as Taguig and Makati, and design and music capitals
such as Cebu and Davao City. These units shall be the primary implementors of the programs and
projects of the Council at the local level

SEC. 10. One-Stop Registration Center. - The Council shall establish a one-stop
registration center in every region to assist the creative industries register, acquire, market, or
otherwise exercise legal ownership, over their creative content utilizing their patents, trademarks,
service marks, trade names, copyrights and other legal title :

SEC. 11. Reorganization. - For efficiency and economy, the reorganization of concerned
agencies, such as NHCP, NCCA, DOT, DOF, DTI, Film Development Council of the Philippines
(FDCP), Movie and Television Review and Classification Board (MTRCB), National Film
Archive of the Philippines (NFAP), National Parks Development Committee (NPDC), National
Museum, Optical Media Board (OMB), Kapisanan ng mga Broadkaster ng Pilipinas (KBP), as
well as necessary linkages with their subdivisions, shall be undertaken

SEC. 12. Appropriations. - The amount of Five Hundred Million Philippine Pesos
(PhpS00,000.00) shall be appropriated for the initial implementation of the Act. Thereafter, such
sums as may be necessary for the continued implementation of the Act shall be included in the
Annual General Appropriations Act


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SEC. 13. Implementing Rules and Regulations. - Within ninety (90) days after the
effectivity of this Act, the implementing Rules and Regulations shall be promulgated by the CIDC
in coordination with the concerned Departments of the National Government.

SEC. 14. Separability Clause. - If, for any reason, any portion or provision of this Act
shall be held unconstitutional or invalid, the remaining provisions not affected thereby shall
continue to be in full force and effect.

SEC. 15. Repealing Clause. - All laws, executive orders, proclamations, rules,
regulations and other issuances or parts thereof which are inconsistent with the provisions of this
‘Act are hereby repealed or amended accordingly.

SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in any newspaper of general circulation

Approved.