Optical Media Act

• Republic Act No. 9239 was signed on February 10, 2004
• Republic Act No. 9239 was enacted by the Congress of the Philippines, Twelfth Congress, Third Regular Session, in Metro Manila
• Short Title


  Optical Media Act of 2003
• Policy


  Ensure the protection and promotion of intellectual property rights

  Regulate the manufacture, mastering, replication, importation and exportation of optical media
• Economic Zone


  Special Economic Zones, Industrial Estates, Export Processing Zones and Free Trade Zones as defined in Republic Act No. 7916 or the PEZA Law
• IP Code


  Republic Act No. 8293, the Intellectual Property Code of the Philippines
• License


  Authority granted by the Optical Media Board (OMB) to engage in the business of mastering, manufacture, replication, importation or exportation of optical media
• Magnetic Media


  Storage medium or device characterized by a base, usually plastic, coated with ferric oxide powder, in which visual and/or aural information, or software code, may be recorded or stored
• Manufacture


  The act or business of producing optical media or devices containing sounds and/or images, or software code, including any work protected in Part IV of the IP Code, by mastering and/or replication
• Manufacturing Equipment


  Any and all equipment, machine or device, now known or to be known in the future, intended or designed for the production or manufacture, by mastering and/or replication of optical media, optical media masters, or production parts thereof
• Manufacturing Material


  Any material such as, but not limited to, optical grade polycarbonate or polycarbonate substitutes with physical properties suitable for the manufacture of optical media
• Mastering


  The act or business of producing a stamper made of glass, metal or other material, intended for the manufacture of optical media
• Optical Media


  A storage medium or device in which information, including sounds and/or images, or software code, has been stored, either by mastering and/or replication, which may be accessed and read using a lens scanning mechanism employing a high intensity light source such as a laser or any such other means as may be developed in the future
• OMB

  Optical Media Board
• Replication


  The process of manufacturing optical media by reproducing or generating copies of the stamper in an injection molding machine or other forms of replicating equipment
• Source Identification Code or SID Code


  A system of codes to identify the source of all optical media mastered, manufactured or replicated by any establishment or entity
• The Videogram Regulatory Board (VRB) created under Presidential Decree No. 1987 is hereby reorganized into the Optical Media Board (OMB)
• The OMB is placed under the Office of the President (OP) and has its principal offices in Metropolitan Manila
• The authority of the OMB covers the entire territory of the Republic of the Philippines including the economic zones
• Composition of the OMB Board

  • 4 ex officio members

  5 regular members appointed by the President
• Ex officio members


  Secretary of the Department of Trade and Industry (DTI) or representative

  Secretary of the Department of the Interior and Local Government (DILG) or representative

  Secretary of the Department of Finance (DOF) or representative

  Director-General of the Intellectual Property Office (IPO) or representative
• Regular members


  3 representatives from the private sector

  1 representative from consumer organizations

  1 representative from the academe
• Qualifications of regular members


  Filipino citizens, at least 21 years old, of good moral character and standing, with proven competence in the industry they represent
• Qualifications of Chairperson


  At least 35 years old, of known probity and managerial and administrative competence
• At least 2 members of the Board must be members of the Philippine Bar
• Compensation


  Chairperson receives salary and allowances based on current approved standardized government compensation

  Vice-Chairperson and members receive honoraria and allowances based on existing government accounting and auditing rules and regulations
• The Board shall meet regularly at least once a month or as often as necessary at the call of the Chairperson
• Powers and Functions of the OMB

  • Formulate and implement policies and programs

  Evaluate qualifications of individuals/entities to engage in mastering, manufacture or replication

  Supervise, regulate, grant, renew, deny, suspend or cancel licenses

  Conduct inspections with or without prior notice

  Apply for search warrants and take into preventive custody optical media, materials or equipment

  Act as complainant in criminal prosecution of violators

  Hear and resolve administrative cases against violators

  Call upon law enforcement agencies and managing authorities in economic zones for assistance

  Deputize provincial governors, city/municipal mayors, and representatives of national government agencies, organizations representing copyright owners, neighboring rights owners and concerned sectors to monitor compliance and report violations

  Require persons/entities to keep and maintain records for at least 5 years

  Levy, assess and collect fees and charges for licenses

  Establish support offices as necessary

  Create and maintain a database of registered and/or licensed optical media and other related establishments

  Prescribe internal and operational procedures

  Exercise other powers and functions necessary or incidental to the Act's purposes
• The Chairperson of the Board is the Chief Executive Officer (CEO) who shall execute and administer the policies, decisions, orders, resolutions and other official acts of the OMB
• Optical Media Board (OMB)

  Responsible for regulating the optical media industry in the Philippines
• Powers and functions of the OMB

  1. Formulate, review, assess and collect fees and charges for licenses

  2. Establish support offices

  3. Create and maintain a database of registered/licensed establishments

  4. Prescribe internal and operational procedures

  5. Exercise other powers and functions to achieve the Act's objectives
• Chief Executive Officer (CEO) of the OMB


  • Chairperson of the Board who executes and administers OMB policies, decisions, orders and regulations
  • Establishes internal organization and procedures
  • Directs and supervises OMB operations
  • Submits annual budget
  • Delegates authority to other Board members
  • Performs other powers and functions authorized by the Board or President
• OMB Secretariat


  Headed by an Executive Director who assists the Chairperson/CEO in day-to-day operations
• Licensing and Registration


  1. Any person/establishment must register and secure licenses from OMB before engaging in:

  2. Importation, exportation, acquisition, sale or distribution of optical media, equipment, parts, accessories and materials

  3. Possession or operation of manufacturing equipment, parts, accessories, or possession, acquisition, sale or use of manufacturing materials

  4. Mastering, manufacture, replication, importation or exportation of optical media
• License


  • Valid for 3 years, subject to OMB conditions
  • Failure to register and obtain license cancels any other permits/licenses
• Grounds for non-issuance or non-renewal of license

  • Applicant failed to comply with OMB requirements
  • Applicant/officers convicted of IP rights offenses
  • Application involves premises where IP rights offenses occurred
  • Applicant provided false/misleading information
  • Applicant's previous license was cancelled for cause within 5 years
• Grounds for suspension or cancellation of license


  • Upon request of license holder
  • License holder ceased activities or changed premises
  • License holder convicted of IP rights offenses
  • License holder breached or unable to comply with license conditions
• Existing establishments must register and secure OMB licenses within 30 days of the Act's implementing rules
• Source Identification (SID) Codes


  • Codes prescribed, developed and/or adopted by OMB for all registered/licensed persons, establishments engaged in optical media mastering, manufacture or replication
  • SID Codes must be visible and legible on each optical media product
• Offenses and Penalties


  • Imprisonment of 3-6 years and fine of Php 500,000-1,500,000 for various violations related to unlicensed activities, unauthorized use of IP, and improper use of SID codes
  • Imprisonment of 1-3 years and fine of Php 100,000-500,000 for unlicensed importation, exportation, sale or distribution of manufacturing materials, and knowingly performing unauthorized mastering/manufacturing services
  • Imprisonment of 30-90 days or fine of Php 25,000-50,000 for knowingly possessing or engaging in commercial activities involving optical media in violation of the Act