P 
TIIIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
{JJ -5 
f93 :30 
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First Regular Session 
1 
33 
SEN 
SB No 
Introduced by Senator Miriam Defensor Santiago 
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EXPLANATORY NOTE 
The Philippines is becoming Asia's dumping ground of optical disk pirates, warned 
Richard O'Neill, an official of the association of America's top seven movie studios, adding the 
proliferation of counterfeit products would lead to the loss of local jobs. 
The local film industry is collapsing due to piracy. In fact, the Philippines ranks No. 5 
among 15 countries in the Asia-Pacific region considered markets of optical disk pirates. The top 
four are Vietnam, Pakistan, China, and Indonesia. 
Movie production in the Philippines is down by 80 percent as annual production slid to 
80 filiiis a year from 200 previously. This slowdown has led to P1.7 billion in foregone tax 
revenues, and has affected close to 110,000 jobs. 
The film distribution industry stands to lose over a billion pesos in investments, while 
government risks losing P400 inillion in tax revenues should the industry collapse. Close to a 
iiiillion Filipino jobs were affected by the proliferation of pirated videos, while nearly 50 
centavos out of every peso of potential earnings of the whole local film industry was lost to 
pirates. 
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To strengthen the government's drive against piracy, prevention should start at movie 
houses where unauthorized recording of motion pictures is done. This Act seeks to discourage 
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filni piracy by imposing criminal penalties for unauthorized recording 
motion picture exhibition facility. 


THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
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L 
%l?3 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO PROVIDE CRIMINAL PENALTIES FOR UNAUTHORIZED 
PICTURES IN A MOTION PICTURE EXHIBITION FACILITY, 
AND CIVIL PENALTIES FOR UNAUTHORIZED 
PRERELEASE COPYRIGHTED WORKS, AND FOR OTHER PURPOSE 
Be it enacted by the Senate and House of 
assent bled 
SECTION 1. S%ort Title. - This Act may be cited as the “Artists’ Rights and Theft 
Prevention Act of2004” or the “ART Act of 2004.” 
SECTION 2. Statement of Policy. - Intellectual property, among other things, represents 
the ideas, imagination and creativity needed to innovate long before a product is brought to 
market. As such, it is fundamental to the continued economic, social, and cultural developmeiit 
of society and deserves the protection of our laws. The use of camcorders and other audiovisual 
recording devices in movie theaters to make illegal copies of films is posing a serious threat to 
the motion picture industry. National legislation is necessary and warranted to combat the most 
egregious forms of online theft of intellectual property and its significant, negative economic 
impact on the Philippine economy. 
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SECTION. 3. C$rminal penalties for unauthorized re-cording of motion pictures in a 
motion picture exhibilion facility - 
(1) OFFENSE - Whoever, without the consent of the copyright owner, knowingly uses or 
attempts to use an audiovisual recording device in a motion picture exhibition facility to 
transmit or make a copy of a motion picture or other audiovisual 
thereof, in a motion picture exhibition facility shall-. 
(1) be imprisoned for not more than ten years, fined under this 


(2) if the offense is a second or subsequent offense, be imprisoned for no more 
than twenty years, fined under this title, or both. 
(2) FORFEITURE AND DESTRUCTION - When a person is convicted of a violation of 
subsection (l), the court in its judgment of conviction shall, in addition to any penalty 
provided, ordel .- the forfeiture and destruction or other disposition of all unauthorized 
copies of motion pictures or other audiovisual works, or parts thereof, and any 
audiovisual recording devices or other equipment used in connection with the offense. 
(3) AUTHORIZED ACTIVITIES- This section does not prevent any lawfully authorized 
investigative, protective, or intelligence activity by an officer, agent, or employee of the 
Philippine government, or its political subdivision, or a person acting p rsuant to a 
contract with the Philippine government or any of its political subdivisions. 
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SECTION 4. Definitions. - As used in this Act, the following terms shall mean: 
(1) AUDIOVISUAL WORK, COPY, AND MOTION PICTURE- audiovisual works 
consisting of a series of related images which, when shown in succession, impart an impression 
of motion, together with accompanying sounds, if any. 
(2) AUDIOVISUAL RECORDING DEVICE- a digital or analog photographic or video 
camera, or any other technology capable of enabling the recording or transmission of a 
copyrighted motion picture or other audiovisual work, or any part thereof, regardless of whether 
audiovisual recording is the sole or primary purpose of the device. 
(3) MOTION PICTURE EXHIBITION FACILITY- means any theater, screening room: 
lobby, indoor or out-door screening venue, ballroom, or other premises where copyrighted 
motion pictures or other audio-visual works are publicly exhibited, regardless of whether or not 
an admission fee is charged. 
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SEC?ION. 5. Civil remedies for infringement of u commercial prerelease copyrighted 
work. Damage for prerelease infringement- 
(1) IN GENERAL- In the case of a computer program, a non-dramatic musical work, a 
motion picture or other audiovisual work, or a sound recording, that is being prepared for 
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coinmercial distribution, actual damages shall be presumed conclusively to be no less that 
Two Hundred Thousand Pesos (P200,OOO.OO) per infringement, if a person - 
(a) distributes such work by making it available on a computer network 
accessible to members of the public who are able to reproduce the work through such 
access without the express consent of the copyright owner; and 
(b) h e w  or should have known that the work was intended for commercial 
distribution. 
(2)~WORIC PR&'ARED 
FOR DISTRIBUTION- For purposes of subparagraph (l), a 
work protected under this Title is being prepared for commercial distribution - 
(a) when at the time of unauthorized distribution, the copyright owner had a 
reasonable expectation of substantial commercial distribution and the work had not yet 
been so distributed; or 
(b) in the case o f a  motion picture, protected under this title, when a the time of 
unauthorized distribution, the work had been made available for viewin in motion 
picture exhibition facilities, but had not been made available to the general public in a 
format intended to permit viewing outside motion picture exhibition facilities. i 
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SECTION. 6. Implementing Agency .- The Optical Media Board shall implement the 
provisions of this Act. 
SECTION 7. Separability Clause. - If any provision or part hereof is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 8. Repealing Claim. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
with, the provision of this Act is hereby repealed, modified or amended accordingly 
SECTION 9. Efectivity Clause. - This Act shall take effect fifteen days (15) days after 
its publication in at leas two (2) newspapers o f  general circulation. 
Approved, 
/alp