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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No.504 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The 1987 Constitution provides under Article XIV, Section 14, that "Arts 
and Letters shall enjoy the patronage of the State. The State shall conserve, 
promote and popularize the nation's historical heritage and resources as well as 
artistic creations." 
We, Filipinos, are known to be music lovers and we have proven to the 
international community that our singers and composers can compete and even 
best other countries in musical competitions. One way of giving support to our 
musical artists is to alleviate and'promote our music industry. 
Music industry plays a vital role in the development and enrichment of the 
Filipino arts and culture. 
Hence, every effort must be made in order to 
encourage and develop the musical creativity of the Filipino, to promote and 
cultivate the development of our music and to encourage, support and protect the 
promotion and propagation of Filipino music here and abroad. 
I mmediate approval of this bill is earnestly sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 
504 
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10 JUl-7 P,S :32 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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. 
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 ahd 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 
Filipinos, to promote and cultivate the development of Filipino music, and to 
encourage, support and protect 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 competition, 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 Philippine music industry; 
and 
d) 
To disseminate and promote Filipino music in the country and 
abroad. 
SEC 3. Definition of Terms.-
1. Original Pilipino Music - shall refer to a musical composition, with or 
without lyrics, originally created by a Filipino, in English or in any other 
language or in any other Philippine dialect; 


2. Performers - shall refer to actors, singers, mUSICians, dancers and 
other persons, who act, sing, deliver, declaim or otherwise perform 
literary or artistic work; 
3. Music Score - shall refer to any exclusively visual fixation of sounds 
for renditions, sound, recording or broadcasting; 
4. Sound Recording -
shall refer to any exclusively aural fixation of 
sounds of a performance or other sounds; 
5. Producer of Sound Records - shall refer to the person who, or the 
legal entity which, first fixes a performance or recording; 
6. Publication - shall refer to the issue or offering to the public of copies 
of a sound recording in reasonable quantity; 
7. Reproduction -
shall refer to the making of a copy or copies of a 
recording or a musical score; 
8. Broadcasting - shall refer to the transmission from public reception of 
sounds or of images and sounds; 
9. Broadcasting Organization -
shall refer to proprietorships duly 
authorized to engage broadcasting; 
10. Right of the Composer - shall refer to: 
a. Performace - shall refer to the broadcasting of musical works 
be it live or recorded. 
b. Mechanical -
shall refer to disc and reproduction of musical 
works. 
c. Synchronization -
shall refer to the coordination between 
musical works and visual images in motion pictures, television 
and advertising commercials. 
d. Printing - shall refer to the publication works in musical and 
vocal arrangements. 
SEC. 4. Strengthening the Presidential Commission on Culture and 
Arts. -
To achieve the objectives of this Act, the existing Presidential 
Commission on Culture and Arts (PCCA), hereinafter referred to as the 
Commission, have the following additional powers and functions: 
a) 
To stimUlate arid promote the creation and rendition of Filipino 
music and extend other forms of assistance to qualified persons 
and institutions; 
b) 
To facilitate the organization and encourage clubs and societies 
throughout the Philippines to promote and popularize Filipino 
music; 
c) 
To provide guidelines for the popularization of Filipino music 
through media and public places; 
d) 
To encourage the development of plans and programs, whether 
by the private sector or the government, the identification, 
selection, training, and support of mUsically-gifted children; 


e) 
To devise a system of payment of royalties to Filipino 
musicians; 
f) 
To promote and protect the rights and privileges of the Filipino 
artists, giving due recognition to the local artist over and above 
visiting artists from abroad; 
g) 
To monitor, mediate or arbitrate in the following cases, in 
accordance with guidelines it shall formulate: 
1) 
Infringement of copyright and neighboring rights 
involving music; 
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 broadcast organization involved 
in music; 
3) 
Controversies involving intellectual property in 
music, its assignment or transfer, or those 
involving licenses whether exclusive or not. 
h) 
To accept donations, grants or contributions and to undertake 
fund-raising activities, administer the funds solicited thereat for 
the attainment of the objectives of this Act; 
i) 
To submit an annual report of its activities, including the 
utilization and status of fund herein established, to the 
Department of Education. 
SEC. 5. National Music Committee. - The National Music Committee 
(NMC) under the Commission shall be hereinafter be composed of nine (9) 
members who, as far as practicable, should come from recognized association in 
the music industry. 
The NMC 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. 
The first members of the NMC 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 three (3) years; and three (3) for a term of four (4) years from the date 
they qualify and assume office. 
Their successors shall be appointed by the President for a uniform of six 
(6) years, except that any person elected by the NMC to fill a vacancy in the 
NMC shall serve only for the unexpired term of the number whom he or she 
succeeds. 
Each member shall, for each day of meeting actually attended by him, 
receive from the general fund of the Commission a per diem of not more than 


Five Hundred Pesos (P500.00) and in no case shall the total per diems per 
month exceed One Thousand Five Hundred Pesos (P1,500.00). 
SEC. 6. Equity. - Equity or the preferential right of local performers over 
foreign shall be given to local performers, producers of sound records, and all 
other performers 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 NMC. 
The income from equity collections of the NMC shall be constituted into a 
Fund which shall be administered and managed by the Council and in 
accordance with its rules and regulations. 
The Fund shall be utilized primarily for the benefit of the local performers. 
SEC. 7. Taxation of Foreign Recordings. - The NMC 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 broadcast a minimum of four (4) Original Pilipino Musical 
Compositions in every clockhour.of a program with a musical format, as stated in 
Section 1 of Executive Order No. 255. 
All musical, variety and cultural programs in all television stations shall 
include sixty percent (60%) Filipino compositions for every clockhour of showtime 
/ airtime . 
. Musical scores of Filipino films shall be at least seventy five percent (75%) 
Filipino music. 
All public places shall play sixty percent (60%) Filipino music for every 
clockhour. These public places ()re as follows: 
a) Movie houses - during screening intervals 
b) Parks and plazas - music played through their public address 
systems 
c) Lobbies of hotels and other lodging places, and restaurants 
piped-in music 
d) Shopping malls -
music played through their public address 
system, in shows and entertainment fare 
e) Public transports by air, land and sea piped-in music 
f) Government offices and buildings piped-in music 
, 
g) Schools, universities and colleges music played through their 
public address system, 
in 
school 
programs, 
shows 
and 
ceremonies. 


SEC 9. 
Enforcement and Implementation. -
The enforcement and 
implementation of the abovementioned provisions shall be performed by the 
NMC. It may, however, deputize or seek assistance from other agencies such 
as, 
but 
not 
limited 
to 
the 
Department 
of Education, 
the 
National 
Telecommunications Commission (NTC), Kapisanan ng mga Brodkaster ng 
Pilipinas (KBP), volunteer groups, and other civic organizations. 
SEC 10. Penalties. - Any franchise holder, operator or owner of a radio 
station which fails to broadcast the minimum number of Original Pilipino Musical 
Compositions in every clockhour of a program with a musical format shall be 
fined in the amount of One Thousand Pesos (P1 ,000.00) for the first offense and 
Two Thousand Pesos (P2,000.00) for the second offense. 
The producer / director of the TV musical, variety or cultural program 
which fail to play the required. sixty percent (60%) shall pay a fine of Five 
Thousand Pesos (P5,000.00) for the first offense and Ten Thousand Pesos 
(P1 0,000.00) for the second offense. 
After due hearing, the National Telecommunications Commission shall 
cancel the Certificate of Registration and Authority to operate any radio / 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) 
Establishment of regional recording studios - Regional recording 
studios administered by the NMC shall be established to provide 
equal access to recording studios. 
b) 
Tax Relief - The foJlowing tax incentives shall be provided: 
1. 
Taxes on imported musical instruments, as long as they do 
not compete with local counterparts of the same quality, 
shall be reduced by fifty percent (50%); 
2. 
Taxes on imported musical equipment needed for recordings 
and/or 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) 
Grants, Awards and Scholarships -
Scholarship grants shall be 
created for both amateur and professional singers and musicians in 
order to further develop their capabilities. 
Musical awards shall be given annually to both amateur and 
professional singers, artists, performers, and other musical-related 
performances and jobs, to be called the "Parangal sa Musikang Pilipino". 
The NMC coordination with agencies and entities involved in the 
promotion of Filipino music shall organize this annual event. 


SEC. 12. 
Tax Exemption. - All donations, contributions, subsidies or 
aids which may be made to the NMC shall be considered allowable deductions 
from the income of the donors or grantors for income tax purposes. 
Transactions undertaken by the NMC in pursuance of its objectives shall 
be free from any and all taxes and charges. 
SEC. 13. Appropriations. - Out of any funds in the National Treasury 
not otherwise appropriated the, sum of Five Million Pesos (P5,OOO,OOO.OO) is 
hereby appropriated for the NMC for its initial expenses. Thereafter, the NMC 
shall submit a proposed budget for inclusion 
in the annual General 
Appropriations Act. 
SEC. 14. 
Repealing Clause. -
All existing laws, rules, charters and 
regulations or parts thereof inconsistent with the provisions of this Act are hereby 
repealed, superseded or modified accordingly. 
SEC. 15. Separability Clause. - If any part, section, or provision of this 
Act is declared invalid or unconstitutional, no other part, section or provision 
hereof shall be affected thereby. 
SEC. 16. Effectivity. - This Act shall take effect six (6) months after its 
publication in a newspaper of general circulation. 
Approved,