PRESIDENTIAL DECREE No. 969 July 24, 1976AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NO. 960 WHICH AMENDED ARTICLE 201 OF THE REVISED PENAL CODE AND FOR OTHER PURPOSESI, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby decree and order:

Section 1.Sections 1 and 2 paragraph 1 of Section 4 of Presidential Decree No. 960 are hereby further amended to read as follows:

"Sec. 1. Amendment of Article 201, Revised Penal Code. Article 201 of Act Numbered Thirty-Eight hundred and fifteen, otherwise known as the Revised Penal Code, is amended to read as follows:

"Art. 201. Immoral doctrines, obscene publications and exhibition, and indecent shows. The penalty of prision mayor or a fine ranging from six thousand to twelve thousand pesos, or both such imprisonment and fine, shall be imposed upon:

"1. Those who shall publicly expound or proclaim doctrines openly contrary to public morals;

"2. a. The authors of obscene literature, published with their knowledge in any form; the editors publishing such literature; and the owners/operators of the establishment selling the same;

"b. Those who, in theaters, fairs, cinematographs or any other place, exhibit indecent or immoral plays, scenes, acts or shows, it being understood that the obscene literature or indecent or immoral plays scenes, acts or shows, whether live or in film, which are prescribed by virtue hereof, shall include those which: (1) glorify criminals or condone crimes; (2) serve no other purpose but to satisfy the market for violence, lust or pornography; (3) offend any race religion; (4) tend to abet traffic in and use of prohibited drugs; and (5) are contrary to law, public order, morals, good customs, established policies, lawful orders, decrees and edicts.

"3. Those who shall sell, give away or exhibit films, prints, engravings, sculpture or literature which are offensive to morals.

"Sec. 2. Disposition of the Prohibited Articles. The disposition of the literature, films, prints, engravings, sculptures, painting, or other materials involved in the violation referred to in Section 1 hereof shall be governed by the following rules:

"a. Upon conviction of the offender, to be forfeited in favor of the government to be destroyed.

"b. Where the criminal case against any violator of this decree results in acquittal, the obscene/immoral literature, films, prints, engravings, sculpture, paintings or other materials and articles involved in the violation referred to in Section 1 hereof shall nevertheless be forfeited in favor of the government to be destroyed, after forfeiture proceedings conducted as the Chief of Constabulary.

"c. The person aggrieved by the forfeiture action of the Chief of Constabulary may, within fifteen (15) days after his receipt of a copy of the decision, appeal the matter to the Secretary of National Defense for review. The decision of the Secretary of National Defense shall be final and unappealable.

"Sec. 4. Additional Penalties. Additional penalties shall be imposed as follows:

"1. In case the offender is a government official or employee who allows the violations of Section 1 hereof, the penalty as provided herein shall be imposed in the maximum period and, in addition, the accessory penalties provided for in the Revised Penal Code, as amended, shall likewise be imposed."

Section 2.To be inserted between Sections 4 and 5 of Presidential Decree No. 960 is Section 4-A to read as follows:

"Sec. 4-A. The Chief of Constabulary shall, with the approval of the Secretary of National Defense, promulgate the necessary rules and regulations for the implementation of this decree."

Section 3.This decree shall take effect fifteen (15) days after its publication by the Department of Public Information in two (2) newspapers of general circulation.

Done in the City of Manila, this 24th day of July in the year of Our Lord, nineteen hundred and seventy-six.

REPUBLIC ACT No. 3060AN ACT CREATING THE BOARD OF CENSORS FOR MOTION PICTURESSection 1.There is hereby created a board to be known as the Board of Censors for Motion Pictures, hereinafter called the Board, which shall have its principal office in the City of Manila, and which shall be under the Office of the President of the Philippines.

Section 2.The Board shall be composed of a Chairman and twenty-four other members to be appointed by the President of the Philippines with the consent of the Commission on Appointments. The Chairman of the Board shall hold office for a term of four years:Provided, That the members first appointed to the Board shall hold office as follows: eight members for two years, eight members for three years, and the other eight members for four years, from the date they assume office, and, thereafter, the term of office of the Board members shall all be four years. Any person chosen to fill a vacancy in the Board shall serve only for the unexpired term of the member he succeeds. Each member shall receive a compensation of ten pesos per preview session payable every month and the chairman shall receive an additional compensation of fifty pesos a month.

No person shall be appointed to the Board unless he is a native born citizen of the Philippines, not less than thirty-five years of age, of good moral standing in the community, and not directly connected with the motion picture or television industries:Provided, That the President shall appoint as members of the Board at least three nominees from each of the following:

(a) Professional organizations;

(b) Religious organizations;

(c) Educational associations;

(d) Child and/or Welfare organizations;

(e) Civic associations;

(f) Cultural organizations;

(g) Associations of newspapermen.

Section 3.The Board shall have the following duties and powers:

(a) To screen, censor, examine and supervise the examination of, approve or disapprove or delete portions from, and/or prohibit the introduction and exhibition of all motion pictures, imported or produced in the Philippines for non-theatrical, theatrical and television distribution which in its judgment are immoral, indecent, contrary to law, and/or good customs or injurious to the prestige of the Republic of the Philippines or its people;

(b) To classify the motion pictures approved for exhibition into those for general patronage and those for adults only;

(c) To screen, review, delete portion from, approve or disapprove and censor all publicity materials in connection with any motion picture including trailers, stills, and other advertising materials which in their judgment are immoral, indecent, contrary to law and/or good customs, or injurious to the prestige of the Republic of the Philippines or its people;

(d) Subject to the Civil Service Rules and Law, to appoint personnel and a technical staff when necessary for the effective execution and implementation of the provisions of this Act. The Board shall have a permanent Secretary who shall be appointed by the President of the Philippines upon recommendation of the Board. The Secretary shall keep the records of the Board; take charge of its office; see to it that the orders and permits of the Board are followed and perform such other duties as may be assigned to him by the Board. The Board shall have the power to fix the compensation of the Secretary, technical staff and personnel of the Board; prescribe their duties; and specify their qualifications to the end that only competent persons may be employed;

(e) To promulgate its own rules of procedures and operation in general, including matters of quorum and of organization and appointment of sub-committees for censoring motion pictures and motion picture advertisements throughout the Philippines, and to keep a record of its proceedings with reference to the motion pictures examined by it, whether passed or not, and if passed the classification thereof; and

(f) To charge a fee to be fixed by the Board for each film and other materials presented to it for review or examination, all such fees to be used for the operational expenses of the Board.

Section 4.The decision of the Board either approving or disapproving for exhibition in the Philippines a motion picture, stills and other pictorial advertisements submitted to it for examination and review must be rendered within a period of ten days which shall be counted from the date of receipt by the Board of an application for that purpose, and actual receipt of the motion picture, stills or other pictorial advertisements to be reviewed. A decision of the Board disapproving a motion picture for exhibition in the Philippines must be in writing and shall state the reasons or grounds for such disapproval. No film or motion picture intended for exhibition at movie houses or theaters or on television shall be disapproved by reason of its topic, theme or subject-matter, but upon the merits of each picture considered in its entirety.

Section 5.Appeal from the decision of the Board shall be made to a committee composed of the Undersecretaries of Justice, National Defense, and Education, within fifteen days from receipt of notice of decision appealed from.

Section 6.Except members of the Board, members of its duly appointed staff, and two representatives each of the distributor and/or producer and exhibitor of the motion picture under examination and review, no person shall be allowed, or authorized by the Board inside the screening room during the examination and review of any motion picture.

Section 7.It shall be unlawful for any person or entity to exhibit or cause to be exhibited in any motion picture theater or public place, or by television within the Philippines any motion picture, including trailers, stills, and other pictorial advertisements in connection with motion pictures, not only passed by the Board; or to print or cause to be printed on any motion picture to be exhibited in any theater, or public place or by television, a label or notice showing the same to have been officially passed by the said Board when the same has not been previously authorized, except motion pictures imprinted or exhibited by the Philippine Government and/or its departments and agencies, and newsreels.

Section 8.The motion picture exhibitors shall post and/or display the certificate or label of approval of the motion picture by the Board, and shall post or display, or cause to be posted or displayed the said certificate or label at conspicuous places near the entrances to the theaters or places of exhibition, and shall include in all their cinema advertisements announcements stating the classification as provided in Section three (b) hereof, of the motion pictures being exhibited or advertised.

Section 9.It shall be unlawful for any person below eighteen years of age to enter, to make use of any misrepresentation or false evidence about his or her age in order to gain admission into, a movie house or theater or the showing of a motion picture classified `for adults only' by the Board. And it shall be also unlawful for any employee of a movie house or theater to sell to, or receive from, another person known to the former to be below eighteen years of age any admission ticket to the exhibition of motion pictures classified as "for adults only". In case of doubt as to the age of the person seeking admission, the latter shall be required to exhibit his or her residence certificate or other proof of age.

Section 10.For purposes of this Act the following terms shall mean:

(1) Motion pictures a completed composite print of any silent and sound motion film or tape, either black and white or in color, that can form visual moving images on the projection screen or television screen through the mechanical application of the projection equipment.

(2) Non-theatrical distribution:

(a) Public showing of long and short motion pictures through the use of mobile projection equipment not imposing admission fee.

(b) Showing of long or short motion pictures to organizations, societies, clubs, groups, etc. such as films for children, educational, documentary, cultural, scientific, newsreel, industrial, sales, public relations, and instructional films.

(3) Theatrical distribution: Public showing and/or exhibition in any cinema or theater or in any other place of motion pictures imposing admission fees to persons for entertainment, education, information and advertising.

(4) An Adult is any person eighteen years of age or over.

(5) Preview session shall mean the examination of films by the Board, the duration of which shall not be less than two hours.

Section 11.Any violation of Section seven of this Act shall be punished by imprisonment of not less than six months but not more than two years, or by a fine of not less than six hundred nor more than two thousand pesos, or both at the discretion of the court. If the offender is an alien, he shall be deported immediately. The license to operate the movie theater or television shall also be revoked. Any other kind of violation shall be punished by imprisonment of not less than one month nor more than three months or a fine of not less than one hundred pesos nor more than three hundred pesos, or both, at the discretion of the court. In case the violation is committed by a corporation, partnership or association, the criminal liability shall devolve upon the president, manager, administrator, or any official thereof responsible for the violation.

Section 12.In the event a motion picture, after examination and review by the Board, is declared unfit for exhibition in the Philippines, the said motion picture shall be returned by the importer or distributor thereof to the country of origin or to any other place outside of the Philippines within a period of thirty days, which shall be counted from the date of receipt by the importer or distributor of the decision of the Board banning the motion picture for exhibition in the Philippines, and all customs duties and internal revenues taxes paid by the importer of distributor on account of the importation to and entry into the Philippines of the said motion picture shall be automatically refunded by the government office concerned to the said importer or distributor. A copy of the decision of the Board banning a motion picture for exhibition in the Philippines shall be furnished to the Commissioner of Internal Revenue and to the Collector of Customs of the port of entry of the said motion picture, and the same shall constitute a sufficient authority to the Commissioner of Internal Revenue and the Collector of Customs concerned to refund the internal revenue taxes and customs duties paid by the importer or distributor on account of the importation of the banned motion picture.

Section 13.Act Numbered Thirty-five hundred eighty-two, as amended, and all other Acts or parts of Acts inconsistent with this Act are hereby repealed.

Section 14.This Act shall take effect upon its approval.

Approved: June 17, 1961

Republic Act No. 9239 February 10, 2004AN ACT REGULATING OPTICAL MEDIA, REORGANIZING FOR THIS PURPOSE THE VIDEOGRAM REGULATORY BOARD, PROVIDING PENALTIES THEREFOR, AND FOR OTHER PURPOSESBe it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

I. GENERAL PROVISIONSSection 1.Short Title. - This Act shall be known as the "Optical Media Act of 2003".

Section 2.Policy. - It is hereby declared to be the policy of the State to ensure the protection and promotion of intellectual property rights.

The unregulated mastering, manufacture, replication, importation and exportation of optical media in all forms is inimical to economic growth and public interest. Towards this end, the State shall institute the means to regulate the manufacture, mastering, replication, importation and exportation of optical media.

Section 3.Definition of Terms. - For the Purpose of this Act, the following terms shall mean:

(a)Economic Zone- the Special Economic Zones, Industrial Estates, Export Processing Zones and Free Trade Zones as defined in Republic Act No. 7916 or the PEZA Law including the Clark Special Economic Zone, the Cagayan Special Economic Zone, the Zamboanga City Special Economic Zone, the Subic Bay Freeport and other economic zones now in existence in the Philippines or as may be established in the future;

(b)IP Code- Republic Act No. 8293 also known as the Intellectual Property Code of the Philippines;

(c)License- the authority granted by the Optical Media Board (OMB) to establishments or entities registered with the OMB to engage in the business of mastering, manufacture, replication, importation or exportation of optical media;

(d)Magnetic Media- a 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, including, but not limited to, magnetic tape, cassettes, video tape, diskettes, and floppy discs;

(e)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. In relation to equipment, "manufacture" shall refer to the assembly or integration of various components into any equipment useful for the mastering, manufacture and/or replication of optical media;

(f)Manufacturing Equipment- any and all equipment, machine or device, now known or to be known in the future, intended or design for the production or manufacture, by mastering and/or replication of optical media, optical media masters, or production parts thereof, including but not limited to, those which shall be listed in the Implementing Rules and Regulations (IRR) of this Act or as prescribed by the OMB. For the purpose of this Act, optical disc writers and such other devices used in personal computers not for commercial purposes shall not be considered as manufacturing equipment;

(g)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;

(h)Mastering- the act or business of producing a stamper made of glass, metal or other material, intended for the manufacture of optical media;

(i)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. The term shall include, but not be limited to, devices which shall be listed in the IRR of this Act, or as prescribed by the OMB;

(j)OMB- the Optical Media Board;

(k)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; and

(l)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.

II. THE OPTICAL MEDIA BOARDSection 4.Reorganization. - To implement the policies and attain the objectives enunciated in this Act, the Videogram Regulatory Board (VRB) created under Presidential Decree No. 1987 is hereby reorganized into the Optical Media Board (OMB).

The OMB shall be placed under the Office of the President (OP) and shall have its principal offices in Metropolitan Manila.

Section 5.Coverage. - The authority of the OMB shall cover the entire territory of the Republic of the Philippines including the economic zones as defined in this Act and in Republic Act No. 7916.

Section 6.The Board- The OMB shall be composed of four (4) ex officio members and five (5) regular members to be appointed by the President. The Chairperson shall be appointed by the President from among the five (5) regular members.

Theex officiomembers of the Board shall be composed of the Secretary of the Department of Trade and Industry (DTI) or his duly authorized representative; the Secretary of the Department of the Interior and Local Government (DILG) or his duly authorized representative; the Secretary of the Department of Finance (DOF) or his duly authorized representative; and the Director-General of the Intellectual Property Office (IPO) or his duly authorized representative: Provided, That the authorized representatives shall have a rank not lower than the Assistant Secretary.

The Five (5) regular members shall be composed of three (3) representatives from the private sector, each of whom shall be appointed from an identified industry relying on intellectual property protection, one (1) representative from the consumer organizations and one (1) representative from the academe. The regular members shall be nominated by their nationally recognized associations or organizations.

The members of the Board shall elect from among themselves the Vice-Chairperson.

The Chairperson and the regular members of the Board shall hold office for a term of three (3) years, unless sooner removed by the President for cause: Provided, That the Chairperson and the Regular members may not serve for more than two (2) consecutive terms: Provided, further, That if any member fails to complete his or her term, the person appointed to fill the vacancy shall serve only for the unexpired portion of the term.

Section 7.Qualifications- The regular members of the Board shall be Filipino citizens, at least twenty-one (21) years old, of good moral character and standing in the community, and with proven competence in the industry they represent: Provided, that the Chairperson shall be at least thirty-five (35) years old, of known probity and managerial and administrative competence: Provided, finally, That at least two (2) members of the board must be members of the Philippine Bar.

Section 8.Compensation- The Chairperson shall receive a salary and allowances based on current approved standardized government compensation.

The Vice-Chairperson and members of the Board shall receive honoraria and allowances based on existing government accounting and auditing rules and regulations.

Section 9.Meetings- The Board shall meet regularly at least once a moth or as often as necessary at the call of the Chairperson. A majority of the members of the Board shall constitute a quorum to do business.

Section 10.Powers and Functions of the OMB. - The OMB shall have the following powers and functions:

(a) Formulate and implement such policies and programs as are necessary for the accomplishment of the purposes of this Act;

(b) Evaluate the qualifications of any individual, establishment or other entity to engage in the mastering, manufacture or replication of optical media. For this purpose, the OMB shall require such person to substantiate its capability to engage in said activities;

(c) Supervise regulate, grant, or renew licenses for specific periods, or deny, suspend, or cancel the same, subject to such conditions as it may impose, for the activities enumerated in Section 13(a), (b) and (c);

(d) Conduct inspections, by itself or in coordination with other competence agencies of the government, at anytime, with or without prior notice, of establishments or entities including those within the economic zones engaged in the activities as provided in Section 13(a), (b) and (c) of this Act, and employ reasonable force in the event that the responsible person or persons of such establishment or entity evades, obstructs, or refuses such inspection. For this purpose, the agents of the OMB shall be considered agents in authority;

(e) Apply for or obtain search warrants from any court of law, or take into preventive custody any optical media and/or material or equipment, including parts, accessories and paraphernalia used for the mastering, manufacture or replication of optical media which are found in any premises if the OMB has reasonable ground to believe or suspect that these are evidence of violation of the provisions of this Act;

(f) Act as complainant in the criminal prosecution of violators of this Act;

(g) Hear and resolve administrative cases against violators of this Act and impose administrative sanctions including, but not limited to, the imposition of fines and penalties; confiscation of optical media; and suspension, non-renewal or cancellation of the license to operate and/or closure of establishments or entities that violate the provisions of this Act. For this purpose, the Board shall have the power to issue subpoena or subpoena duces tecum to compel the attendance of witnesses and production of documents and other effects;

(h) Call upon law enforcement agencies and the managing authorities in the economic zones for assistance in the implementation and enforcement of its decisions, orders, rules and regulations;

(i) To deputize, whenever necessary, provincial governors, city and municipal mayors, and representatives of the national government agencies, organizations representing copyright owners, neighboring rights owners and concerned sectors to help monitor compliance with and report to the OMB any violation of this Act;

(j) Require persons, establishments and entities engaged in the activities in Section 13 to keep and maintain for a period of at least five (5) years true and complete records of all activities related to the conduct of its business. For this purpose, the Board may, at any time, require the production of such records and samples of optical media from each mastering, manufacturing or replicating line;

(k) Levy, assess and collect, and periodically adjust and/or revise the rates of fees and charges for the issuance of licenses granted under this Act;

(l) Establish support offices as may be necessary;

(m) Create and maintain a database, and regularly publish data containing the list and activities of registered and/or licensed optical media and other related establishments. Any enforcement agency, including the Bureau of Customs, may refer to this database for enforcement and/or seizure;

(n) Prescribe the internal and operational procedures for the exercise of its powers and functions, the performance of its duties and responsibilities and other related matters; and

(o) Exercise such other powers and functions as may be necessary or incidental to the attainment of the purposes and objectives of this Act, and to perform other related duties and responsibilities as may be directed by the President.

Section 11.Chief Executive Officer. - The Chairperson of the Board shall be the Chief Executive officer (CEO). The CEO shall exercise the following powers and functions:

(a) Execute and administer the policies, decisions, orders, resolutions and the rules and regulations issued by the Board;

(b) Establish the internal organization and administrative procedures of the OMB, and recommend to the Board the appointment, transfer, detail, and suspension or dismissal for cause of its administrative and subordinate personnel;

(c) Direct and supervise the operations and the internal affairs of the OMB;

(d) Submit an annual budget to the Board for its approval;

(e) Delegate his or her authority, in whole or in part, to other members of the Board, in accordance with the rules and regulations of the OMB; and

(f) Perform such other powers and functions as may be authorized by the Board or the President.

Section 12.The OMB Secretariat. - The OMB shall have a Secretariat, herein created, headed by an Executive Director who shall assist the Chairperson/CEO in the day-to-day operations of the OMB.

The Executive Director shall be appointed by the Chairperson subject to the approval of the Board. His term shall be coterminous with the CEO.

III. LICENSING AND OTHER REGULATORY PROVISIONSSection 13.Licensing and Registration. - Any person, establishment or entity shall, prior to engaging in one or more of the business or activities enumerated hereunder, register with, and secure the appropriate licenses from the OMB:

(a) Importation, exportation, acquisition, sale or distribution of optical media, manufacturing equipment, parts and accessories and manufacturing materials used or intended for use in the mastering, manufacture or replication of optical media;

(b) Possession or operation of manufacturing equipment, parts and accessories, or the possession acquisition, sale or use of manufacturing materials for the mastering, manufacture or replication of optical media; and

(c) The mastering, manufacture, replication, importation or exportation of optical media.

With respect to the preceding paragraph (c), the licenses issued by the OMB are conditions precedent for securing the necessary business permits, licenses, or registration from the appropriate authorities, and shall also be necessary requirement for the release of manufacturing equipment, parts and accessories, and materials intended for use in mastering and/or manufacturing optical media, from customs or economic zones exercising independent custom laws.

Those engaged or intending to engage in more than one of the above mentioned activities and/or conduct or intend to conduct business in more than one location shall separately register with and secure the license from the OMB for every business activity at each place of business.

No business activity registered and licensed by the OMB for a specific place of business shall be conducted in a place and/or location other than that indicated in the license, without the prior written approval of the OMN. The registration and license issued by the OMB shall be prominently displayed at the designated place of business.

Section 14.Form, Term, Amendment and Renewal of License. - Every license shall be in a form prescribed by the OMB and shall be valid for a period of three (3) years subject to conditions as the OMB may impose. The OMB may amend or renew a license upon application made by the licensee in accordance with this Act.

Failure to register and obtain a license from the OMB shall automatically cancel any permit, license or registration issued by any national or local government unit, agency or office.

Section 15.Grounds for Non-issuance or Non-renewal of License. - The OMB may refuse to grant a license, or to renew a license, upon the following grounds:

(a) The applicant has failed to comply with any requirement imposed by the Board pursuant to this Act and its implementing rules and regulations;

(b) The applicant or, in the case of juridical persons, any of its officers, directors, managers, shareholders, or partners, is convicted by final judgment of an offense under this Act or any law relating to the protection of intellectual property rights;

(c) The application involves a place, location or premises where an offense has been committed under this Act or under any law relating to the protection of intellectual property rights: Provided, That the offenders have finally been convicted of such offense;

(d) The applicant has furnished the OMB with any false or misleading information in connection with any application for or renewal of a license; or

(e) The applicant has been previously issued a license that has been cancelled for cause within the preceding five (5) years from the date of the application.

The OMB shall decide whether or not to grant or renew a license within fifteen (15) working days from the filing of the application.

Section 16.Grounds for Suspension or Cancellation of License. - The OMB may, motu proprio or upon motion of any interested party, after notice and hearing, suspend or cancel a license on any of the following grounds:

(a) when requested by the license holder;

(b) when the license holder has ceased to engage in the activities authorized under the license or in the place, location or premises indicated in the license;

(c) when the license holder has been convicted of an offense under this Act or under any other Law relating to the protection of intellectual property rights; or

(d) when the license holder is in breach of, or is unable to comply with any of the conditions prescribed in the license.

Section 17.Registration of Present Licenses. - All existing establishments or entities in the Philippines engaged in activities enumerated in Section 13 shall, within thirty (30) calendar days after the effectivity of the rules and regulations implementing this Act, register with and secure the necessary licenses from the OMB.

Section 18.Source Identification (SID) Codes. - The OMB shall determine, develop and/or adopt a system of Source Identification (SID) codes that is of international recognition and acceptance.

The OMB shall prescribe SID codes for all persons, establishments or entities registered with and licensed by the OMB to engage in the mastering, manufacture or replication of optical media, including such other codes as it may determine or require. Such codes shall be applied to each and every optical media mastered, manufactured or replicated including glass masters, stampers or other parts used for the manufacture of optical discs.

The SID Codes shall be visible and legible and must conform to such specifications as prescribed by the OMB.

IV. PENAL PROVISIONSSection 19.Offenses and Penalties. -

(a) Imprisonment of at least three (3) years but not more than six (6) years, and a fine of not less than Five Hundred thousand pesos (Php 500,000.00) but not exceeding One Million five hundred thousand pesos (Php 1,500,000.00), at the discretion of the Court, shall be imposed on any person, natural or juridical, who shall:

(1) Engage in the importation, exportation, acquisition, sale or distribution of, or possess or operate manufacturing equipment, parts and accessories without the necessary licenses from the OMB;

(2) Engage in the mastering, manufacture, replication, importation or exportation of optical media without the necessary license from the OMB;

(3) By himself, or through another, cause the mastering, manufacture or replication of any intellectual property in optical media intended for commercial profit or pecuniary gain without authority or consent of the owner thereof;

(4) Engage in the Mastering, manufacture, or replication of optical media without affixing or installing in the resulting products the SID Code, and/or such other codes prescribed, assigned and authorized by the OMB. The absence of the codes prescribed, assigned and authorized by the OMB in any optical media shall be prima facie evidence that said optical media are in violation of this Act;

(5) Engage in the mastering, manufacture, or replication of optical media using, affixing or installing in the resulting products false SID or other codes. The presence of false or unauthorized codes shall be prima facie evidence that said optical media are in violation of this act;

(6) Engage in the mastering, manufacture, or replication of optical media using, affixing or installing in the resulting products false SID or other codes that have been assigned by the OMB to another person, or, having been assigned and authorized said codes by the OMB, allow or authorize another person, establishment or entity to use, affix or install such codes in the latter's products;

(b) Imprisonment of at least one year but not more than three years and a fine not less than one hundred thousand pesos, but not exceeding five hundred thousand pesos, at the discretion of the court, for the following offenses:

(1) Engaging in the importation, exportation, sale or distribution of, or possess or acquire in commercial quantities manufacturing materials used or intended for use in the mastering, manufacture or replication of optical media without the necessary licenses from the OMB;

(2) Knowingly performing or rendering the service of mastering, manufacture or replication of optical media, after having been licensed by the OMB, to any person, in respect of any intellectual property, who does not have the consent by the owner of the intellectual property or his representatives or assigns;

For this purpose, any person, establishment or entity that is licensed by the OMB to engage in the above mentioned activities shall be considered to have acted in good faith in respect of any transaction entered into by him in respect to the preceding paragraph, if he notifies the OMB of such transaction within five working days from receipt of the order, furnishing to the OMB all material information thereof;

(3) Refusing to submit to inspection by the OMB, or surrender for preventive custody any optical media, equipment, manufacturing materials, including parts, accessories and paraphernalia found during inspection operations to be in violation of the provisions of this Act;

For purposes of this subsection, violators who will employ armed resistance against agents of the OMB shall be penalized under other applicable laws in addition to those provide in this Act; and

(a) Imprisonment of at least 30 days but not more than 90 days or a fine of not less than 25,000.00 pesos but not exceeding fifty thousand pesos at the discretion of the court:

(1) Knowingly possess items of the same content or title, produced in violation of this Act, and used for the purpose with the intent to profit;

(2) Engaging in the sale, rental, distribution, importation, exportation of, or any other commercial activity involving optical media that are in violation of this Act.

(b) For subsequent offenses in Section 19(a), uniform imprisonment of six (6) years but not more than nine (9) years and a fine of not less than One Million five hundred thousand pesos (Php 1,500,000.00) but not exceeding Three million pesos (Php 3,000,000.00) at the discretion of the Court, shall be imposed.

(c) For subsequent offenses in Section 19(b), uniform imprisonment of three (3) years but not more than six (6) years and a fine of not less than Five hundred thousand pesos (Php 500,000.00) but not exceeding One million five hundred pesos (PHp 1,500,000.00) at the discretion of the Court, shall be imposed.

The offenses listed under this section shall be punished without prejudice to the application of appropriate penalties or sanctions provided under Section 216 and such other appropriate sections of the IP Code or Republic Act No. 8792 also known as the Electronic Commerce Act, the Revised Penal Code or other applicable laws.

Section 20.Determination of Penalties- In determining the number of years of imprisonment, or amount of fine to be imposed, the court shall consider the size of the operations of the offender, the value of the articles involved in the violation, and the period of violation. In imposing administrative penalties, the OMB shall likewise consider the said circumstances.

Section 21.Persons Liable. - If the offender is an alien, the person shall immediately be deported after serving his sentence, and shall, thereafter, be refused entry into the country.

If the offender is a government official or employee, he shall suffer perpetual disqualification from public office and forfeiture of his right to vote and participate in any public election for ten (10) years.

Should the offense be committed by the juridical person, the stockholder, chairperson, president, officer, director, trustee, partner or manager responsible for such violation shall be liable.

Section 22.Enforcement- The OMB may solicit the direct assistance of other agencies, the managing authorities in the economic zones and instrumentalities of the national and local governments, and may deputize for a limited period the heads or personnel of agencies to perform enforcement functions for the OMB, insofar as such functions are concerned shall be subject to the direction and supervision of the OMB.

Section 23.Disposal of Seized Materials. - Any optical media, equipment or materials found to be in violation of the provisions of this Act, any books, records, or paraphernalia providing evidence of any violation committed by any person, establishment or entity, shall be confiscated and forfeited in the favor of the government and shall be disposed in accordance with pertinent laws and regulations: Provided, That confiscated optical media may, pending consideration of the case, be immediately destroyed upon final determination by the OMB in an administrative case, or by a court in a civil or criminal case, that are the same are in violations of this Act: Provided, further, That a sufficient representative sample shall be retained for evidentiary purposes.

The retained representative sample shall remain in custodia legis until the final resolution of proceedings thereon.

Equipment and materials imported of this Act shall be subject to seizure and immediate disposal by the Bureau of Customs.

IV. TRANSITORY PROVISIONSSection 24.The Videogram Regulatory Board (VRB) and Secretariat- The incumbent Chairperson, Vice-Chairperson, members of the Board and Secretariat shall continue to perform their duties and functions in a hold-over capacity, and shall receive their corresponding salaries and benefits until such time that the new chairperson and at least majority of the Board shall have been appointed and qualified.

The Present officials and employees of the VRB shall be given priority, on the basis of experience, merit and fitness, in appointments to new positions to which they may qualify under the new staffing pattern: Provided, That those who shall be given new appointments shall be entitled to all compensation and benefits due them under existing laws: Provided, further, that those who shall be separated from service shall receive all separation pay and benefits due under existing laws.

The transition period shall not exceed six months after effectivity of this Act.

Section 25.Transfer of Funds, Assets, Liabilities and Records. All unexpended appropriations , real and personal property, contracts, records, documents, and assets and liabilities of the VRB shall be transferred to the OMB.

Section 26.Regulation of Magnetic Media. - The provisions of this Act shall apply mutates mutandis to the regulation of magnetic media.

Section 27.Classification of Motion Pictures and Cinematographic Works. - The classification for audience suitability of motion pictures and cinematographic works in optical media including related publicity materials thereto shall be the function of the Movie and Television Review and Classification Board (MTRCB).

Section 28.Prosecution of Pending Cases- for the purpose of this Act, all pending cases for violation of presidential Decree No. 1987 shall continue to be prosecuted.

V. MISCELLANEOUS PROVISIONSSection 29.Organization Structure- the organizational structure and staffing pattern of the OMB shall be established in coordination with the Dept. of Budget and Management (DBM) and in accordance with Civil Service laws, rules, and regulations.

Section 30.Period of Implementation- The OMB and the DBM shall prepare the necessary work programs to cover the staggered implementation of this Act for a period not exceeding five (5) years.

Section 31.Appropriations. - The appropriations for the VRB under the current General Appropriations Act shall be used to carry out the initial implementation of this Act. Thereafter, such sums as may be necessary for its implementation shall be included in the General Appropriations Act.

Section 32.Annual Report. - The OMB shall, within ninety days after the end of every fiscal year, submit to the President and to Congress an annual report on its accomplishments under this Act, together with its plans and recommendations to improve and develop its capability to enforce the provisions of this Act, and a complete accounting of transactions with respect to the use of income.

Section 33.Congressional Oversight Committee on the OMB.- The Congressional oversight committee on the optical media board shall be composed of the chairs of the senate committees on public information and mass media and trade and commerce and the house of representatives committees on trade and industry and public information, and two members each from the senate and house of representatives who shall be designated by the senate president and the speaker of the house of representatives: Provided, That one of the two senators and one of the two house members shall be nominated by the respective minority leaders of the senate and the house of representatives.

The COC-OMB is hereby mandated to oversee the implementation of this Act for a period of five years. For this purpose, COC-OMB shall set the implementation of this act and shall adopt its internal rules of procedure.

The Secretariat of the COC-OMB shall be drawn from the existing Secretariat personnel of the Senate and House of Representatives Committees comprising the COC-OMB.

To carry out the powers and functions of the COC-OMB, the initial sum of five million pesos shall be charged against the current appropriations of congress. Thereafter, the amount necessary for its continued operations shall be included in the annual General Appropriations Act.

Section 34.Implementing Rules and Regulations. - The OMB shall within three months from the effectivity of this Act submit to the COC-OMB, the implementing rules and regulations (IRR) governing this Act. The COC-OMB shall approve the IRR within thirty days.

Section 35.Separability Clause. - If, for any reason, any provision of this Act is declared invalid or unconstitutional, the other sections or provisions not so declared shall remain in full force and effect.

Section 36.Repealing Clause. - Presidential Decree No. 1987 is hereby repealed. Presidential Decree No. 1986 or the MTRCB Law and other laws, rules, regulations, decrees, executive orders, and other issuance or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Section 37.Effectivity- This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,

FRANKLIN DRILONPresident of the SenateJOSE DE VENECIA JR.Speaker of the House of Representatives

This Act which is a consolidation of house Bill No. 5225 and Senate Bill No. 2586 was finally passed by the House of Representatives and the Senate on December 17, 2003 and January 13, 2004, respectively.

OSCAR G. YABESSecretary of SenateROBERTO P. NAZARENOSecretary GeneralHouse of Represenatives

Approved: February 10 2004

GLORIA MACAPAGAL-ARROYOPresident of the PhilippinesPRESIDENTIAL DECREE No. 1987AN ACT CREATING THE VIDEOGRAM REGULATORY BOARDWHEREAS, the proliferation and unregulated circulation of videograms including, among others, videotapes, discs, cassettes or any technical improvement or variation thereof, have greatly prejudiced the operations of movie houses and theaters, and have caused a sharp decline in theatrical attendance by at least forty percent (40%) and a tremendous drop in the collection of sales, contractor's specific, amusement and other taxes, thereby resulting in substantial losses estimated at P450 Million annually in government revenues;

WHEREAS, videograms establishments collectively earn around P600 Million per annum from rentals, sales, and disposition of videograms, and such earnings have not been subjected to tax, thereby depriving the Government of approximately P180 Million in taxes each year;

WHEREAS, the unregulated activities of videogram establishments have also affected the viability of the movie industry, particularly the more than 1,200 movie houses and theaters throughout the country, and occasioned industry-wide displacement and unemployment due to the shutdown of numerous movie houses and theaters;

WHEREAS, in order to ensure national economic recovery, it is imperative for the Government to create an environment conducive to the growth and development of all business industries, including the movie industry which has an accumulated investment of about P3 Billion;

WHEREAS, proper taxation of the activities of videogram establishments will not only alleviate the dire financial condition of the movie industry upon which more than 75,000 families and 500,000 workers depend for their livelihood, but also provide an additional source of revenue for the Government, and at the same time rationalize the heretofore uncontrolled distribution of videograms;

WHEREAS, the rampant and unregulated showing of obscene videogram features constitutes a clear and present danger to the moral and spiritual well-being of the youth, and impairs the mandate of the Constitution for the State to support the rearing of the youth for civil efficiency and the development of moral character and promote their physical, intellectual, and social well-being;

WHEREAS, civic-minded citizens and groups have called for remedial measures to curb these blatant malpractices which have flaunted our censorship and copyright laws;

WHEREAS, in the face of these grave emergencies corroding the moral values of the people and betraying the national economic recovery program, bold emergency measures must be adopted with dispatch;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree:

Section 1.Creation.- There is hereby created an office to be known as the Videogram Regulatory Board, hereinafter referred to as the BOARD, which shall have its principal office in Metro Manila and shall be under the Office of the President of the Philippines. The BOARD shall regulate the importation, exportation, production, reproduction, distribution, exhibition, showing, sale, lease or disposition of videograms including, among others, videotapes, discs, casettes or any technical improvement or variation thereof in accordance with such rules and regulations to be adopted by the BOARD.

Section 2.Composition of the Board.- The Board shall be composed of a Chairman, a Vice-Chairman and eighteen (18) members who shall all be appointed by the President of the Philippines to serve for a term of one (1) year, unless sooner removed by the President for any cause; Provided, That they shall be eligible for reappointment after the expiration of their term. If the Chairman or Vice-Chairman or any of the members fails to complete his term, any person appointed to fill the vacancy shall serve only for the unexpired portion of the term of the Board member whom he succeeds.

No person shall be appointed to the BOARD, unless he is a natural-born citizen of the Philippines, not less than twenty-one years of age, and of good moral character and standing in the community; Provided, That in the selection of the members of the BOARD due consideration shall be given to such qualifications as would produce a multi-sectoral combination of expertise in the various areas of the videogram industry; Provided, further, That at least five (5) members must be members of the Philippine Bar.

The Chairman, Vice-Chairman and members of the BOARD shall be entitled to transportation, representation and other allowances which shall in no case exceed Five Thousand Pesos (P5,000.00) per month.

Section 3.Powers and Functions.- The BOARD shall have the following powers and functions:

1) To supervise, regulate, grant, deny, or cancel permits for the importation, exportation, production, copying, sale, lease, exhibition or showing of videograms including, among others, videotapes, discs, cassettes or any technical improvement or variation thereof;

2) To approve or disapprove, delete, objectionable portions from and/or prohibit the importation, exportation, production, copying, distribution, sale, lease, exhibition or showing of videograms, including, among others, videotapes, discs, cassettes or any technical improvement or variation thereof, which, in the judgment of the BOARD applying contemporary Filipino cultural values as basic standard, are objectionable for being immoral, indecent, libelous, contrary to law or good customs, or injurious to the prestige of the Republic of the Philippines or its people, or with a dangerous tendency to encourage or fan hatred, the commission of violence or of a wrong or crime, such as but not limited to:

i) Those which tend to incite subversion, insurrection, rebellion, or sedition against the State or otherwise threaten the economic and/or political stability of the State;

ii) Those which tend to undermine the faith and confidence of the people in their government and/or the duly constituted authorities;lawphil.netiii) Those which glorify criminals or condone crimes;

iv) Those which are libelous or defamatory to the good name and reputation of any person, whether living or dead;

v) Those which serve no other purpose but to satisfy the market for excessive violence or hard-core pornography;

vi) Those which tend to abet the traffic in and use of prohibited drugs; or

vii) Those which commit direct or indirect contempt of any court of justice or quasi-judicial tribunal whether any litigation on the subject of the video is pending or not before such court of tribunal.

3) To classify all videograms into categories such as "For General Patronage", "For Adults Only", or such other categories as the BOARD may determine for the public interest;

4) To close video theaters and other similar establishments engaged in the public exhibition or showing of videograms which violate the provisions of this Decree and the rules and regulations promulgated by the BOARD pursuant thereto;

5) To levy, assess and collect, and periodically adjust and revise the rates of fees and charges for the work of review and examination and for the issuance of licenses and permits which the BOARD is authorized to grant in the exercise of its powers and functions and in the performance of its duties and responsibilities;lawphil.net6) To review and examine all videograms, including among others, videotapes, discs, cassettes or any technical improvement or variation thereof, as well as publicity materials or advertisements related thereto, with the end in view of making appropriate classification;

7) To deputize representatives from the government and from the various associations in the videogram industry, whose main duties shall be to help and ensure compliance with all laws, rules and regulations relative to this Decree. For this purpose, the BOARD may constitute such Council or Councils composed of representatives from the government and the videogram industry as may be appropriate to implement the objectives of this Decree. The BOARD may also call upon any law enforcement agency for assistance in the implementation and enforcement of its decisions, orders and rules and regulations;

8) To cause the prosecution, on behalf of the People of the Philippines, of violators of this Decree and the rules and regulations promulgated or issued by the BOARD.

9) To promulgate such rules and regulations as are necessary or proper for the implementation of this Decree and the accomplishment of its purposes and objectives. Such rules and regulations shall take effect after fifteen (15) days following their publication in newspapers of general circulation in the Philippines;

10) To prescribe the internal and operational systems and procedures for the exercise of its powers and functions including the creation and vesting of authority upon sub-committees of the BOARD for the work of review, examination or classification and other related matters; and

11) To exercise such other powers and functions as may be necessary or incidental to the attainment of the purposes and objectives of this Decree, and to perform such other related duties and responsibilities as may be directed by the President of the Philippines.

Section 4.Executive Officer.- The Chairman of the BOARD shall be the Chief Executive Officer. He shall Exercise the following duties and functions:

a) Execute, implement and enforce the decisions, orders, rules and regulations promulgated or issued by the BOARD;

b) Direct and supervise the operations and the internal affairs of the BOARD;

c) Establish the internal organization and administrative procedures of the BOARD, and recommend to the BOARD the appointment of the necessary administrative and subordinate personnel; and

d) Exercise such other powers and functions and perform such duties as are not specifically lodged in the BOARD.

The Chief Executive Officer shall be assisted by an Executive Director who shall be appointed by the President of the Philippines. The Executive Director shall hold office for a term of one (1) year, unless sooner removed by the President of the Philippines, for any cause.

Unless otherwise provided by law, the Chief Executive Officer shall receive an annual salary of Seventy Two Thousand Pesos (P72,000.00) and the Executive Director shall receive an annual salary of Sixty Thousand Pesos (P60,000.00).

*Section 6.Registration.- No person, whether natural or juridical, may engage in the importation, exportation, production, reproduction, exhibition, showing, sale, lease or disposition of videograms unless such person is first registered with and permitted by the BOARD to operate as such. The registration with and permit issued by the BOARD is a condition precedent for securing a business permit or license from the appropriate authorities.

Section 7.Reproduction of Cinematographic Art.- No person registered and permitted to engage in the videogram industry can copy or reproduce any cinematographic art without the written consent or approval of the producer, importer or licensee of the cinematographic art to be copied or reproduced, and in no case shall any cinematographic art be allowed to be copied or reproduced within a period of six (6) months after it is first released for theatrical exhibition, unless the producer, importer or licensee agrees to a shorter period.

Section 8.Sale, Lease or Disposition of Videograms.- No videogram including, among others, videotapes, discs, cassettes or any technical improvement or variation thereof, shall be sold, leased or otherwise disposed of unless first registered with the BOARD with the corresponding registration identification or seal in such form and manner as may be provided for by the BOARD.

Section 9.Penalty.- Any person who violates any or all of the provisions of Sections 3, 6, 7, 8 and 10 of this Decree or the rules and regulations to be promulgated pursuant thereto, either as principal, accomplice or accessory, shall, upon conviction, suffer a mandatory penalty of three (3) months and one (1) day to one (1) year imprisonment plus a fine of not less than Fifty Thousand Pesos (P50,000.00) but not more than One Hundred Thousand Pesos (P100,000.00). Should the offense be committed by a juridical person, the chairman, the president, secretary, treasurer, or the partner responsible therefor, shall be the persons penalized.

The provisions of Presidential Decree No. 968, as amended (Probation Law), shall not apply in cases of violations of this Decree, including its implementing rules and regulations.

Section 10.Tax on Sale, Lease or Disposition of Videograms.- Notwithstanding any provision of law to the contrary, the province shall collect a tax of thirty percent (30%) of the purchase price or rental rate, as the case may be, for every sale, lease or disposition of a videogram containing a reproduction of any motion picture or audiovisual program. Fifty percent (50%) of the proceeds of the tax collected shall accrue to the province, and the other fifty percent (50%) shall accrue to the municipality where the tax is collected; Provided, That in Metropolitan Manila, the tax shall equally by the city/municipality and the Metropolitan Manila Commission.

The tax herein imposed shall be due and payable within the first twenty (20) days of the month next following that for which it is due, by the proprietor, seller or lessor concerned, and such tax shall be determined on the basis of a true and complete return of the amount of gross receipts derived during the preceding month. If the tax is not paid within the time fixed herein above, the taxpayer shall be subject to such surcharges, interests and penalties prescribed by the Local Tax Code. In case ofwillfull neglect to file the return and pay the tax within the time required, or in case a fraudulent return is filed or a false return is willfully made, the taxpayer shall be subject to a surcharge of fifty percent (50%) of the correct amount of the tax due in addition to the interest and penalties provided by the Local Tax Code.

Any provision of law to the contrary notwithstanding, a city may also levy and collect, among others, any of the taxes, fees and other impositions that the province or the municipality may levy and collect.

Section 11.Assistance in the Enforcement Functions of the BOARD.- The BOARD may solicit the direct assistance of other agencies and units of the government, and deputize, for a fixed and limited period, the heads or personnel of such agencies and units to perform enforcement function for the BOARD. The government agencies and units exercising the enforcement functions for the BOARD shall, insofar as such functions are concerned, be subject to the direction and control of the BOARD.

Section 12.Organizational Pattern; Personnel.- The BOARD shall determine its organizational structure and its staffing pattern. It shall have the power to suspend or dismiss for cause any employee and/or approve or disapprove the appointment, transfer or detail of employees. It shall appoint the Secretary of the BOARD who shall be the official custodian of the records of the meetings of the BOARD and who shall perform such other duties and functions as directed by the BOARD.

Section 13.Applicability of Civil Service Law.- The BOARD and its officers and employees shall be subject to the Civil Service Law, rules and regulations; Provided, That technical personnel shall be selected on the basis of merit and fitness to be determined in accordance with such policies and guidelines as may be approved by the BOARD.

Section 14.Auditor.- The Chairman of the Commission on Audit shall be the ex officio Auditor of the BOARD. For this purpose, he may appoint a representative who shall be the auditor of the BOARD, together with the necessary personnel to assist said representative in the performance of his duties. The number and salaries of the auditor and said personnel shall be determined by the Chairman of the Commission on Audit, subject to the rules and regulations of the Commission on Audit. Said salaries and all other expenses of maintaining the auditor's office shall be paid by the BOARD.

The Auditor shall, as soon as practicable, but not later than three (3) months after the accounts have been submitted to audit, send an annual report to the BOARD. The Auditor shall also submit such periodic or special reports as the BOARD may deem necessary or proper.

Section 15.Transitory Provision.- All videogram establishments in the Philippines are hereby given a period of forty-five (45) days after the effectivity of this Decree within which to register with and secure a permit form the BOARD to engage in the videogram business and to register with the BOARD all their inventories of videograms, including videotapes, discs, cassettes or other technical improvements or variations thereof, before they could be sold, leased, or otherwise disposed of. Thereafter any videogram found in the possession of any person engaged in the videogram business without the required proof of registration by the BOARD, shall be prima facie evidence of violation of this Decree, whether the possession of such videogram be for private showing and/or for public exhibition.

Section 16.Appropriations.- The sum of Three Million Pesos out of any available funds from the National Treasury is hereby appropriated and authorized to be released for the organization of the BOARD and its initial operations. Henceforth, funds sufficient to fully carry out the functions and objectives of the BOARD shall be appropriated every fiscal year in the General Appropriations Act.

All fees, revenues and receipts of the BOARD from any and all sources shall be used to augment the funds to support the expenditures needed by the BOARD in the pursuit of its purposes and objectives and the exercise of its powers and functions, and for such other purposes as may hereafter be directed by the President of the Philippines.

Section 17.Annual Reports.- The BOARD shall, within three months after the end of every fiscal year, submit its annual report to the President. The annual report shall include, among others, a statement of the BOARD's accomplishments together with its plans and recommendations to improve and develop its operations and the supervision and regulation of the videogram industry.

Section 18.Separability Clause.- In case any provision of this Decree shall be held or declared invalid or unconstitutional, the validity of the other provisions shall not be affected thereby.

Section 19.Repealing Clause.- Any provision of law, decree, executive order, letter of instructions or implementation, or other rules and regulations inconsistent with the provisions of this Decree is hereby repealed, amended or modified accordingly.

Section 20.Effectivity.- This Decree shall take effect after fifteen (15) days following its publication in the Official Gazette.

DONE in the City of Manila, this 5th day of October, in the year of Our Lord, nineteen hundred and eighty-five.

Republic Act No. 6770 November 17, 1989AN ACT PROVIDING FOR THE FUNCTIONAL AND STRUCTURAL ORGANIZATION OF THE OFFICE OF THE OMBUDSMAN, AND FOR OTHER PURPOSESBe 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 Ombudsman Act of 1989".Section 2.Declaration of Policy. The State shall maintain honesty and integrity in the public service and take positive and effective measures against graft and corruption.

Public office is a public trust. Public officers and employees must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty, efficiency, act with patriotism and justice and lead modest lives.

Section 3.Office of the Ombudsman. The Office of the Ombudsman shall include the Office of the Overall Deputy, the Office of the Deputy for Luzon, the Office of the Deputy for the Visayas, the Office of the Deputy for Mindanao, the Office of the Deputy for the Armed Forces, and the Office of the Special Prosecutor. The President may appoint other Deputies as the necessity for it may arise, as recommended by the Ombudsman.

Section 4.Appointment. The Ombudsman and his Deputies, including the Special Prosecutor, shall be appointed by the President from a list of at least twenty-one (21) nominees prepared by the Judicial and Bar Council, and from a list of three (3) nominees for each vacancy thereafter, which shall be filled within three (3) months after it occurs, each of which list shall be published in a newspaper of general circulation.

In the organization of the Office of the Ombudsman for filling up of positions therein, regional, cultural or ethnic considerations shall be taken into account to the end that the Office shall be as much as possible representative of the regional, ethnic and cultural make-up of the Filipino nation.

Section 5.Qualifications. The Ombudsman and his Deputies, including the Special Prosecutor, shall be natural-born citizens of the Philippines, at least forty (40) years old, of recognized probity and independence, members of the Philippine Bar, and must not have been candidates for any elective national or local office in the immediately preceding election whether regular or special. The Ombudsman must have, for ten (10) years or more, been a judge or engaged in the practice of law in the Philippines.

Section 6.Rank and Salary. The Ombudsman and his Deputies shall have the same ranks, salaries and privileges as the Chairman and members, respectively, of a Constitutional Commission. Their salaries shall not be decreased during their term of office.

The members of the prosecution, investigation and legal staff of the Office of the Ombudsman shall receive salaries which shall not be less than those given to comparable positions in any office in the Government.

Section 7.Term of Office. The Ombudsman and his Deputies, including the Special Prosecutor, shall serve for a term of seven (7) years without reappointment.

Section 8.Removal; Filling of Vacancy.

(1) In accordance with the provisions of Article XI of the Constitution, the Ombudsman may be removed from office on impeachment for, and conviction of, culpable violation of the Constitution, treason, bribery, graft and corruption, other high crimes, or betrayal of public trust.

(2) A Deputy or the Special Prosecutor, may be removed from office by the President for any of the grounds provided for the removal of the Ombudsman, and after due process.

(3) In case of vacancy in the Office of the Ombudsman due to death, resignation, removal or permanent disability of the incumbent Ombudsman, the Overall Deputy shall serve as Acting Ombudsman in a concurrent capacity until a new Ombudsman shall have been appointed for a full term.n case the Overall Deputy cannot assume the role of Acting Ombudsman, the President may designate any of the Deputies, or the Special Prosecutor, as Acting Ombudsman.

(4) In case of temporary absence or disability of the Ombudsman, the Overall Deputy shall perform the duties of the Ombudsman until the Ombudsman returns or is able to perform his duties.

Section 9.Prohibitions and Disqualifications. The Ombudsman, his Deputies and the Special Prosecutor shall not, during their tenure, hold any other office or employment. They shall not, during said tenure, directly or indirectly practice any other profession, participate in any business, or be financially interested in any contract with, or in any franchise, or special privilege granted by the Government or any subdivision, agency or instrumentality thereof, including government-owned or controlled corporations or their subsidiaries. They shall strictly avoid conflict of interest in the conduct of their office. They shall not be qualified to run for any office in the election immediately following their cessation from office. They shall not be allowed to appear or practice before the Ombudsman for two (2) years following their cessation from office.

No spouse or relative by consanguinity or affinity within the fourth civil degree and no law, business or professional partner or associate of the Ombudsman, his Deputies or Special Prosecutor within one (1) year preceding the appointment may appear as counsel or agent on any matter pending before the Office of the Ombudsman or transact business directly or indirectly therewith.

This disqualification shall apply during the tenure of the official concerned. This disqualification likewise extends to the law, business or professional firm for the same period.

Section 10.Disclosure of Relationship. It shall be the duty of the Ombudsman, his Deputies, including the Special Prosecutor to make under oath, to the best of their knowledge and/or information, a public disclosure of the identities of, and their relationship with the persons referred to in the preceding section.

The disclosure shall be filed with the Office of the President and the Office of the Ombudsman before the appointee assumes office and every year thereafter. The disclosures made pursuant to this section shall form part of the public records and shall be available to any person or entity upon request.

Section 11.Structural Organization. The authority and responsibility for the exercise of the mandate of the Office of the Ombudsman and for the discharge of its powers and functions shall be vested in the Ombudsman, who shall have supervision and control of the said office.

(1) The Office of the Ombudsman may organize such directorates for administration and allied services as may be necessary for the effective discharge of its functions. Those appointed as directors or heads shall have the rank and salary of line bureau directors.

(2) The Office of the Overall Deputy shall oversee and administer the operations of the different offices under the Office of Ombudsman.t shall likewise perform such other functions and duties assigned to it by the Ombudsman.

(3) The Office of the Special Prosecutor shall be composed of the Special Prosecutor and his prosecution staff. The Office of the Special Prosecutor shall be an organic component of the Office of the Ombudsman and shall be under the supervision and control of the Ombudsman.

(4) The Office of the Special Prosecutor shall, under the supervision and control and upon the authority of the Ombudsman, have the following powers:

(a) To conduct preliminary investigation and prosecute criminal cases within the jurisdiction of the Sandiganbayan;

(b) To enter into plea bargaining agreements; and

(c) To perform such other duties assigned to it by the Ombudsman.

The Special Prosecutor shall have the rank and salary of a Deputy Ombudsman.

(5) The position structure and staffing pattern of the Office of the Ombudsman, including the Office of the Special Prosecutor, shall be approved and prescribed by the Ombudsman. The Ombudsman shall appoint all officers and employees of the Office of the Ombudsman, including those of the Office of the Special Prosecutor, in accordance with the Civil Service Law, rules and regulations.

Section 12.Official Stations. The Ombudsman, the Overall Deputy, the Deputy for Luzon, and the Deputy for the Armed Forces shall hold office in Metropolitan Manila; the Deputy for the Visayas, in Cebu City; and the Deputy for Mindanao, in Davao City. The Ombudsman may transfer their stations within their respective geographical regions, as public interest may require.

Section 13.Mandate. The Ombudsman and his Deputies, as protectors of the people, shall act promptly on complaints filed in any form or manner against officers or employees of the Government, or of any subdivision, agency or instrumentality thereof, including government-owned or controlled corporations, and enforce their administrative, civil and criminal liability in every case where the evidence warrants in order to promote efficient service by the Government to the people.

Section 14.Restrictions. No writ of injunction shall be issued by any court to delay an investigation being conducted by the Ombudsman under this Act, unless there is a prima facie evidence that the subject matter of the investigation is outside the jurisdiction of the Office of the Ombudsman.

No court shall hear any appeal or application for remedy against the decision or findings of the Ombudsman, except the Supreme Court, on pure question of law.

Section 15.Powers, Functions and Duties. The Office of the Ombudsman shall have the following powers, functions and duties:

(1) Investigate and prosecute on its own or on complaint by any person, any act or omission of any public officer or employee, office or agency, when such act or omission appears to be illegal, unjust, improper or inefficient.t has primary jurisdiction over cases cognizable by the Sandiganbayan and, in the exercise of this primary jurisdiction, it may take over, at any stage, from any investigatory agency of Government, the investigation of such cases;

(2) Direct, upon complaint or at its own instance, any officer or employee of the Government, or of any subdivision, agency or instrumentality thereof, as well as any government-owned or controlled corporations with original charter, to perform and expedite any act or duty required by law, or to stop, prevent, and correct any abuse or impropriety in the performance of duties;

(3) Direct the officer concerned to take appropriate action against a public officer or employee at fault or who neglect to perform an act or discharge a duty required by law, and recommend his removal, suspension, demotion, fine, censure, or prosecution, and ensure compliance therewith; or enforce its disciplinary authority as provided in Section 21 of this Act: provided, that the refusal by any officer without just cause to comply with an order of the Ombudsman to remove, suspend, demote, fine, censure, or prosecute an officer or employee who is at fault or who neglects to perform an act or discharge a duty required by law shall be a ground for disciplinary action against said officer;

(4) Direct the officer concerned, in any appropriate case, and subject to such limitations as it may provide in its rules of procedure, to furnish it with copies of documents relating to contracts or transactions entered into by his office involving the disbursement or use of public funds or properties, and report any irregularity to the Commission on Audit for appropriate action;

(5) Request any government agency for assistance and information necessary in the discharge of its responsibilities, and to examine, if necessary, pertinent records and documents;

(6) Publicize matters covered by its investigation of the matters mentioned in paragraphs (1), (2), (3) and (4) hereof, when circumstances so warrant and with due prudence: provided, that the Ombudsman under its rules and regulations may determine what cases may not be made public: provided, further, that any publicity issued by the Ombudsman shall be balanced, fair and true;

(7) Determine the causes of inefficiency, red tape, mismanagement, fraud, and corruption in the Government, and make recommendations for their elimination and the observance of high standards of ethics and efficiency;

(8) Administer oaths, issue subpoena and subpoena duces tecum, and take testimony in any investigation or inquiry, including the power to examine and have access to bank accounts and records;

(9) Punish for contempt in accordance with the Rules of Court and under the same procedure and with the same penalties provided therein;

(10) Delegate to the Deputies, or its investigators or representatives such authority or duty as shall ensure the effective exercise or performance of the powers, functions, and duties herein or hereinafter provided;

(11) Investigate and initiate the proper action for the recovery of ill-gotten and/or unexplained wealth amassed after February 25, 1986 and the prosecution of the parties involved therein.

The Ombudsman shall give priority to complaints filed against high ranking government officials and/or those occupying supervisory positions, complaints involving grave offenses as well as complaints involving large sums of money and/or properties.

Section 16.Applicability. The provisions of this Act shall apply to all kinds of malfeasance, misfeasance, and non-feasance that have been committed by any officer or employee as mentioned in Section 13 hereof, during his tenure of office.

Section 17.Immunities. In all hearings, inquiries, and proceedings of the Ombudsman, including preliminary investigations of offenses, nor person subpoenaed to testify as a witness shall be excused from attending and testifying or from producing books, papers, correspondence, memoranda and/or other records on the ground that the testimony or evidence, documentary or otherwise, required of him, may tend to incriminate him or subject him to prosecution: provided, that no person shall be prosecuted criminally for or on account of any matter concerning which he is compelled, after having claimed the privilege against self-incrimination, to testify and produce evidence, documentary or otherwise.

Under such terms and conditions as it may determine, taking into account the pertinent provisions of the Rules of Court, the Ombudsman may grant immunity from criminal prosecution to any person whose testimony or whose possession and production of documents or other evidence may be necessary to determine the truth in any hearing, inquiry or proceeding being conducted by the Ombudsman or under its authority, in the performance or in the furtherance of its constitutional functions and statutory objectives. The immunity granted under this and the immediately preceding paragraph shall not exempt the witness from criminal prosecution for perjury or false testimony nor shall he be exempt from demotion or removal from office.

Any refusal to appear or testify pursuant to the foregoing provisions shall be subject to punishment for contempt and removal of the immunity from criminal prosecution.

Section 18.Rules of Procedure.

(1) The Office of the Ombudsman shall promulgate its rules of procedure for the effective exercise or performance of its powers, functions, and duties.

(2) The rules of procedure shall include a provision whereby the Rules of Court are made suppletory.

(3) The rules shall take effect after fifteen (15) days following the completion of their publication in the Official Gazette or in three (3) newspapers of general circulation in the Philippines, one of which is printed in the national language.

Section 19.Administrative Complaints. The Ombudsman shall act on all complaints relating, but not limited to acts or omissions which:

(1) Are contrary to law or regulation;

(2) Are unreasonable, unfair, oppressive or discriminatory;

(3) Are inconsistent with the general course of an agency's functions, though in accordance with law;

(4) Proceed from a mistake of law or an arbitrary ascertainment of facts;

(5) Are in the exercise of discretionary powers but for an improper purpose; or

(6) Are otherwise irregular, immoral or devoid of justification.

Section 20.Exceptions. The Office of the Ombudsman may not conduct the necessary investigation of any administrative act or omission complained of if it believes that:

(1) The complainant has an adequate remedy in another judicial or quasi-judicial body;

(2) The complaint pertains to a matter outside the jurisdiction of the Office of the Ombudsman;

(3) The complaint is trivial, frivolous, vexatious or made in bad faith;

(4) The complainant has no sufficient personal interest in the subject matter of the grievance; or

(5) The complaint was filed after one (1) year from the occurrence of the act or omission complained of.

Section 21.Official Subject to Disciplinary Authority; Exceptions. The Office of the Ombudsman shall have disciplinary authority over all elective and appointive officials of the Government and its subdivisions, instrumentalities and agencies, including Members of the Cabinet, local government, government-owned or controlled corporations and their subsidiaries, except over officials who may be removed only by impeachment or over Members of Congress, and the Judiciary.

Section 22.Investigatory Power. The Office of the Ombudsman shall have the power to investigate any serious misconduct in office allegedly committed by officials removable by impeachment, for the purpose of filing a verified complaint for impeachment, if warranted.

In all cases of conspiracy between an officer or employee of the government and a private person, the Ombudsman and his Deputies shall have jurisdiction to include such private person in the investigation and proceed against such private person as the evidence may warrant. The officer or employee and the private person shall be tried jointly and shall be subject to the same penalties and liabilities.

Section 23.Formal Investigation.

(1) Administrative investigations conducted by the Office of the Ombudsman shall be in accordance with its rules of procedure and consistent with due process.

(2) At its option, the Office of the Ombudsman may refer certain complaints to the proper disciplinary authority for the institution of appropriate administrative proceedings against erring public officers or employees, which shall be determined within the period prescribed in the civil service law. Any delay without just cause in acting on any referral made by the Office of the Ombudsman shall be a ground for administrative action against the officers or employees to whom such referrals are addressed and shall constitute a graft offense punishable by a fine of not exceeding Five thousand pesos (P5,000.00).

(3) In any investigation under this Act the Ombudsman may: (a) enter and inspect the premises of any office, agency, commission or tribunal; (b) examine and have access to any book, record, file, document or paper; and (c) hold private hearings with both the complaining individual and the official concerned.

Section 24.Preventives Suspension. The Ombudsman or his Deputy may preventively suspend any officer or employee under his authority pending an investigation, if in his judgment the evidence of guilt is strong, and (a) the charge against such officer or employee involves dishonesty, oppression or grave misconduct or neglect in the performance of duty; (b) the charges would warrant removal from the service; or (c) the respondent's continued stay in office may prejudice the case filed against him.

The preventive suspension shall continue until the case is terminated by the Office of the Ombudsman but not more than six (6) months, without pay, except when the delay in the disposition of the case by the Office of the Ombudsman is due to the fault, negligence or petition of the respondent, in which case the period of such delay shall not be counted in computing the period of suspension herein provided.

Section 25.Penalties.

(1) In administrative proceedings under Presidential Decree No. 807, the penalties and rules provided therein shall be applied.

(2) In other administrative proceedings, the penalty ranging from suspension without pay for one (1) year to dismissal with forfeiture of benefits or a fine ranging from Five thousand pesos (P5,000.00) to twice the amount malversed, illegally taken or lost, or both at the discretion of the Ombudsman, taking into consideration circumstances that mitigate or aggravate the liability of the officer or employee found guilty of the complaint or charges.

Section 26.Inquiries.

(1) The Office of the Ombudsman shall inquire into acts or omissions of a public officer, employee, office or agency which, from the reports or complaints it has received, the Ombudsman or his Deputies consider to be:

(a) contrary to law or regulation;

(b) unreasonable, unfair, oppressive, irregular or inconsistent with the general course of the operations and functions of a public officer, employee, office or agency;

(c) an error in the application or interpretation of law, rules or regulations, or a gross or palpable error in the appreciation of facts;

(d) based on improper motives or corrupt considerations;

(e) unclear or inadequately explained when reasons should have been revealed; or

(f) inefficient performed or otherwise objectionable.

(2) The Officer of the Ombudsman shall receive complaints from any source in whatever form concerning an official act or omission.t shall act on the complaint immediately and if it finds the same entirely baseless, it shall dismiss the same and inform the complainant of such dismissal citing the reasons therefor.f it finds a reasonable ground to investigate further, it shall first furnish the respondent public officer or employee with a summary of the complaint and require him to submit a written answer within seventy-two (72) hours from receipt thereof.f the answer is found satisfactory, it shall dismiss the case.

(3) When the complaint consists in delay or refusal to perform a duty required by law, or when urgent action is necessary to protect or preserve the rights of the complainant, the Office of the Ombudsman shall take steps or measures and issue such orders directing the officer, employee, office or agency concerned to:

(a) expedite the performance of duty;

(b) cease or desist from the performance of a prejudicial act;

(c) correct the omission;

(d) explain fully the administrati