Optical Media Act of 2003

• Republic Act No. 9239, also known as the Optical Media Act of 2003, was enacted on February 10, 2004
• This regulates optical media to protect intellectual property rights
• The act also reorganized the Videogram Regulatory Board into the Optical Media Board (OMB)
• This imposes penalties for violations

General Provisions

• The Act is to be known as the "Optical Media Act of 2003."
• The State policy is to ensure the protection and promotion of intellectual property rights

Definition of Terms

• Economic Zone, refers to Special Economic Zones such as PEZA and Subic Bay Freeport
• IP Code refers to Republic Act No. 8293, known as the Intellectual Property Code of the Philippines
• License refers to permission from the Optical Media Board (OMB) for legal operation
• Magnetic Media includes storage medium (e.g., tapes, diskettes, floppy disks) Manufacturing Equipment covers devices used to produce optical media
• Manufacturing Material are materials used in making optical media (e.g., polycarbonate)
• Mastering refers to creating a stamper for producing optical media
• Optical Media refers to storage devices that use laser scanning (e.g., CDs, DVDs)
• Replication relates to copying data onto optical media using specialized machines
• SID Code is an identifying code for optical media sources

The Optical Media Board (OMB)

• VRB is reorganized into the OMB to implement policies and objectives, and is placed under the Office of the President (OP)
• Headquarters is located in Metropolitan Manila
• OMB's authority covers the entire Philippines, including economic zones like those defined in Republic Act No. 7916

Board Composition

• The OMB Board consists of 4 ex officio members and 5 regular members appointed by the President
• The Chairperson is appointed by the President from among the regular members
• Ex officio members include representatives from the Department of Trade and Industry (DTI), Department of the Interior and Local Government (DILG), Department of Finance (DOF), and Intellectual Property Office (IPO)
• There are 3 regular members from industries reliant on intellectual property protection, one is a consumer organization representative, and one from the academe

Qualifications

• Members must be Filipino citizens, at least 21 years old
• The Chairperson must be at least 35 years old with managerial competence
• At least 2 board members must be members of the Philippine Bar

Compensation

• The Chairperson receives a salary and allowances based on standardized government compensation
• Vice-Chairperson and members receive honoraria and allowances

Meetings

• The OMB holds meetings regularly at least once a month, as well as special meetings as needed
• A majority of the members is required for a quorum

Powers and Functions of OMB

• Policy formulation and implementation
• Licensing and regulation of optical media businesses
• Inspection and enforcement
• Filing criminal cases against violators
• Administrative case resolution and penalties Coordination with law enforcement and economic zone authorities
• There is also deputization of local officials and private sector representatives
• Maintains records of licensed optical media businesses, collection of fees and charges, and creation of a database of licensed establishments

OMB Secretariat

• The OMB Secretariat supports OMB operations, and is led by an Executive Director, appointed by the Chairperson, subject to Board approval

Licensing and Other Regulatory Provisions

• Businesses dealing with optical media (import, export, manufacture, sale, possession of equipment/materials) must register with the Optical Media Board (OMB)
• Separate registration and licensing are required for each activity and location
• A license is a prerequisite for business permits and customs clearance; non-compliance results in automatic cancellation of business permits

Form, Term, Amendment, and Renewal of License

• Licenses are valid for 3 years and subject to conditions set by OMB
• Renewal and amendments must follow OMB regulations
• Failure to obtain a license cancels any business permit or registration

Grounds for Non-Issuance or Non-Renewal of License

• OMB may deny or refuse renewal due to: -Non-compliance with requirements -Final conviction for intellectual property violations -Business conducted in a location linked to IP violations -Submission of false or misleading information -A license was canceled for cause in the past 5 years
• Decision period: 15 working days after application

Grounds for Suspension or Cancellation of License

• Reasons for suspension/cancellation: -Requested by the license holder -Business ceased operations or changed location -Conviction of an offense under this law -Failure to comply with license conditions

• All businesses engaged in optical media activities before the law took effect must register within 30 days of implementing rules

Source Identification (SID) Codes

• SID Codes are required for all mastered, manufactured, and replicated optical media
• Codes must be visible, legible, and internationally recognized
• Used for tacking and authentication of optical media products

Penal Provisions

• Key Penalties and Offenses of the Optical Media Act
• Offenses and Penalties are split into Major, Moderate and Minor

Major Offenses (3-6 years imprisonment + P500K - P1.5M fine)

• Illegal import/export, manufacturing, or replication
• Manufacturing without an OMB license
• Producing optical media without SID codes

Moderate Offenses (1-3 years imprisonment + P100K - P500K fine)

• Unauthorized possession or sale of manufacturing materials
• Providing replication services without IP owner's consent

Minor Offenses (30-90 days imprisonment + P25K - P50K fine)

• Possession and commercial sale of illegal optical media

• Repeat offenders harsher penalties

• Court considers the size of business operations, the value of illegal items, and duration of violations when determining penalties

• Foreign offenders face deportation after sentence

• Government officials face permanent disqualification from office in addition to a 10-year voting ban

• Company violations hold owners, managers, and directors responsible

• The OMB collaborates with law enforcement agencies, customs, and local authorities

• It deputizes personnel to enforce regulations

Disposal of Seized Materials

• Confiscated optical media and equipment: -Destroyed after legal proceedings -Representative samples retained as evidence

Transitory Provisions

• The incumbent Chairperson, Vice-Chairperson, members of the Board and Secretariat of the Videogram Regulatory Board (VRB) shall continue in a hold-over capacity, and shall receive their salaries and benefits until the new chairperson and majority of the Board have been appointed and qualified
• All unexpended appropriations, real and personal property, contracts, records, documents, and assets and liabilities of the VRB shall be transferred to the OMB
• The provisions of this Act apply mutatis mutandis to the regulation of magnetic media
• The Movie and Television Review and Classification Board (MTRCB) handles audience classification for motion pictures and cinematographic works
• All pending cases for violation of Presidential Decree No. 1987 will continue to be prosecuted

Miscellaneous Provisions

• The organizational structure and staffing pattern of the OMB shall be established in coordination with the Dept. of Budget and Management (DBM) and Civil Service laws

Period of Implementation

• The OMB and the DBM shall prepare the staggered implementation of this Act for a period not exceeding five (5) years

• Appropriations for the VRB under the current General Appropriations Act shall be used to initially implement this Act

• The OMB shall submit an annual report on its accomplishments to the President and to Congress within ninety days after the end of every fiscal year

• The Congressional oversight committee on the optical media board includes chairs from the senate and house committees, with members from both houses, and minority leader nominations

• The OMB must submit implementing rules and regulations (IRR) to the COC-OMB within three months of the Act's effectivity

• The COC-OMB must approve the IRR within thirty days

Separability Clause

• If any provision of this Act is declared invalid or unconstitutional, the other sections or provisions not so declared remain in effect Presidential Decree No. 1987 is repealed

Effectivity

• The Act takes effect fifteen (15) days after its publication in the Official Gazette or in at least two newspapers of general circulation