Title V – TRANSITORY PROVISIONS
Rule 1- Regulation of Magnetic Media
Section 1. Application of these Rules to Magnetic Media. – Except as hereinafter provided, Title II of these Rules shall apply to the regulation of magnetic media. Where the phrase “optical media” occurs, the phrase “magnetic media” shall be substituted. All references to “manufacture”, “manufacturing equipment, parts, materials” are deemed deleted.
Section 2. Registration and Licensing. – In lieu of the provisions of Section 1, Rule 1 and Section 1, Rule 2 of Title II, any person, establishment or entity shall, prior to engaging in the importation, exportation, acquisition, sale, distribution or duplication of magnetic media, register with and apply for a license with the OMB.
Section 3. Administrative Offenses and Penalties relating to Magnetic Media. – Without prejudice to the to the filing of criminal or civil actions in appropriate cases, the OMB shall file administrative complaints against and impose administrative penalties in the following cases:
(a) Closure of establishment, confiscation of duplicating equipment, including parts, accessories and paraphernalia and/or magnetic media products and/or a fine of not less than Php 300,000.00, but not more than Php 1,500,000.00, shall be imposed upon any person, establishment or entity who shall:
1. Engage in the importation, exportation, acquisition, sale, distribution or duplication of magnetic media without registering with and/or securing a license from the OMB. Provided, that, the conduct of any business activity in any place other than the place or location registered and licensed by the OMB, shall be deemed as engaging in the said business or activity without the necessary registration or license, as the case may be; Provided, further, that any person, establishment or entity who fails to renew an expired license within thirty (30) days from the date of expiration shall be penalized under subsection (j), or
2. Employ fraud or misrepresentation or otherwise furnish the OMB with any false or misleading information in connection with any registration statement or application for or renewal of a license.
(b) Closure of establishment, confiscation of magnetic media products, cancellation or suspension of license and/or a fine of not less than Php 300,000.00 but not more than Php 1,500,000.00 shall be imposed upon any person, establishment or entity who, being licensed by the OMB as a seller or distributor of magnetic media, by himself, or through another, cause the duplication of any intellectual property in magnetic media intended for commercial profit or pecuniary gain without authority or consent of the owner thereof.
(c) Closure of the establishment, confiscation of duplicating equipment, including parts, accessories and paraphernalia or magnetic media products and/or a fine of not more than twice the value of the products produced but, in no case less than Php 500,000.00, shall be imposed upon any person, establishment or entity who, being licensed to engage in the duplication of magnetic media, knowingly renders the service 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. Provided, that for this purpose, any person, establishment or entity that is licensed by the OMB to engage in the abovementioned activity 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 in writing of such transaction within five (5) working days from receipt of the job order, furnishing to the OMB all material information thereof;
(d) Suspension of operations of the establishment for a period of not less than three (3) months, but not more than six (6) months, confiscation of duplicating equipment, including parts, accessories and paraphernalia or magnetic media products and/or a fine of not less than Php 100,000.00 but not more than Php 500,000.00, shall be imposed upon any person, establishment or entity who shall evade, obstruct, or refuse or cause to evade, obstruct, or refuse any inspection by the OMB or any of its duly authorized agents or deputies, after being duly informed of the order to conduct such inspection.
(e) Suspension of operations of the establishment for a period of not less than three (3) months, but not more than six (6) months, confiscation of duplicating equipment, including parts, accessories and paraphernalia or magnetic media products and/or a fine of not less than Php 100,000.00, but not more than Php 500,000.00, shall be imposed upon any person, establishment or entity who shall refuse to comply with a preventive custody order, or otherwise refuse, to surrender to the OMB for preventive custody any or all magnetic media or equipment, including parts, accessories and paraphernalia, after having been duly informed of the order for preventive custody.
(f) Suspension of operations of the establishment for a period of not less than three (3) months, but not more than six (6) months and/or a fine of not less than Php 100,000.00, but not more than Php 500,000.00, shall be imposed upon any person, establishment or entity who shall:
1) fail 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 business;
2) fail to produce or cause the production and submission of such records to the OMB within a reasonable period of time after notice, as and when required;
3) fail to submit samples of magnetic media and other products within a reasonable period of time after notice, as and when required.
(g) Suspension of operations of the establishment for a period of not less than one (1) month, but not more than three (3) months, confiscation of duplicating equipment, including parts, accessories and paraphernalia or magnetic media products and/or a fine of not less than Php 50,000.00, but not more than Php 100,000.00, shall be imposed upon any person, establishment or entity who shall knowingly possess magnetic media produced in violation of the Act and/or these Rules, for the purpose of sale, rental, distribution or any other commercial purpose or with the intent to profit. Possession under this section shall be deemed for “the purpose of sale, rental, distribution or any other commercial purpose” if the person, establishment or entity shall have in its possession of at least three (3) pieces of media containing the similar copyrighted content, or at least 6 pieces of media containing dissimilar copyrighted content.
(h) Suspension of operations of the establishment for a period of not less than one (1) month, but not more than three (3) months, confiscation of duplicating equipment, parts and paraphernalia or magnetic media products and/or a fine of not less than Php 50,000.00, but not more than Php 100,000.00, shall be imposed upon any person, establishment or entity who shall engage in the sale, rental, distribution, importation, exportation of, or any other commercial activity involving magnetic media that are in violation of this Act.
i) A fine of not less than Php 5,000.00, but not more than Php 50,000.00, shall be imposed upon any person, establishment or entity who shall fail to renew his commercial license within thirty (30) days from the date of expiration thereof.
(j) A fine of not less than Php 1,000.00, but not more than Php 5,000.00, shall be imposed upon any person, establishment or entity who shall fail to prominently display the registration and license issued by the OMB at the designated place of business.
Section 4. Determination of Administrative Penalties. – In imposing administrative penalties, the OMB shall consider the size of the operations of the offender, the value of the articles involved, and the period of the violation.
Rule 2 – Classification of Motion Pictures and Cinematographic Works For Home viewing.
Section 1. The classification for audience suitability of motion pictures and cinematographic works heretofore exercised by the Videogram Regulatory Board shall be assumed by the OMB during the six-month transition period, after which such functions shall be transferred to the MTRCB.
Rule 3 – Registration and Licensing of Existing Businesses, Establishments or Operations
Section 1. Registration and Licensing of Existing Establishments. – All existing establishments or entities engaged in activities enumerated in Section 1, Rule 1, Title II, whether or not registered with or licensed by the VRB, shall, within thirty (30) calendar days from the effectivity of these Rules, register with and secure the necessary licenses from the OMB.
Title V – Final Provisions
Section 1. Separability Clause. – If any section or provision of these Rules shall be held to be invalid, the remaining provisions shall remain in full force and effect as completely as if the part held invalid had not been included therein.
Section 2. Repealing Clause. – Presidential Decree No. 1987 and its implementing rules and regulations are hereby repealed. P.D. 1986 or the MTRCB law and other rules, regulations and issuances or parts thereof which are inconsistent with the provisions of the Act and these Rules are hereby repealed.
Section 3. Effectivity. – These Rules shall take effect, after approval by the Congressional Oversight Committee on the Optical Media Board, fifteen (15) days after publication in a newspaper of general circulation in the Philippines.
Schedule “A”
List of Manufacturing Equipment for Optical Media
Direct Stamper Recording System,
DVD upgrade kits.
Electro forming equipment that make stampers,
Equipment for Coating Laser Sensitive Substance on Compact Disc or Recordable Compact Disc,
Equipment for spin coating glass, masters with a photo resistant layer
Equipment for spin coating optical media with lacquer coating,
Glass or polymer masters
Injection molding machinery,
Integrated optical disc replication lines,
Laser Beam recorders,
Metalizers for applying reflective layers to optical media,
Moulds and components thereof.
Signal processing system for Laser Beam Recorder,
Stamper or other metal parts (or parts made of other materials) and other equipment, part, accessories as may be determined by the OMB
Schedule “B”
List of Manufacturing Material for Optical Media
Any material, such as, but not limited to, optical grade polycarbonate or polycarbonate substitutes with physical properties suitable for the manufacture of optical media. Suitability shall be measured by a melt flow index (MFI) which shall be determined by the OMB. Unless otherwise determined, polycarbonate or polycarbonate substitutes with MFI of not less than 45 grams per ten (10) minutes at 300 degrees Celsius and 1.2 kilogram shall be considered as suitable as manufacturing material, for purposes of these Rules.
Schedule “C”
Types of Optical Media
CD (compact disc),
CD-A (compact disc digital audio),
CD-I (compact disc – interactive),
CD-P (compact disc – photo),
CD-R (compact disc recordable),
CD-ROM (compact disc read-only memory,
CD-RW (compact disc rewritable),
CD-WO (compact disc write once),
CVD (China video disc),
DVD (digital versatile disc),
DVD-RAM (digital versatile disc random access memory),
DVD-ROM (digital versatile disc read-only memory),
EVD (enhanced versatile disc),
LD (laser disc),
MD (mini disc),
SACD (Super audio compact disc),
SVCD (super video compact disc),
VCD (video compact disc),
or any technical variation thereof, now known or to be known in the future;
Schedule “D”
Technical Specifications of the Source Identification Code
The Source Identification (SID) Codes devised by the Philips Intellectual Property and Standards Office (PIPSO) and administered by the International Federation of the Phonographic Industry (IFPI), is adopted by the OMB, for purposes of these Rules.
Its technical specifications are as follows:
(a) The Mould Code
” Each Mould SID Code shall consist of the digits “IFPI” followed by a four or five digit code. The last two digits of the code are to be allocated by the license holder who shall ensure that each mould under his control, including spare moulds, has a unique SID Code. The first two or three digits, as the case may be, will be issued by the OMB and shall uniquely identify the license holder.
Example: A Mould SID Code of “IFPI A01xx” may be issued by the OMB to an applicant for a license. The digits “A01” are unique to the license holder. The license holder must then use the last two digits to allocate a unique code for each mould. The code for the first mould might be IFPI A0100, the code for the second “IFPI A0101”, and so on. Using alphanumeric digits consisting of the numbers 0 through 9 and the letters of the Western alphabet A through Z, excluding “I”, “O”, “S” and “Q”, the license holder has the ability to allocate unique codes to 1,024 different moulds.
” The Mould SID Code shall be etched on the mirror block of each mould, so that the Mould SID Code is moulded on the read-out, or play surface of each disc during the manufacturing process.
” The Mould SID Code shall not be etched on any easily removable part, or applied to the other (stamper) side of the disc (see Fig.1, Schedule 1).
” The Mould SID Code shall be positioned at a radius of between 7.5 mm and 22 mm from the center of the disc.
” The Mould SID Code shall have a character height of between 0.5mm and 1.0mm.
” The Mould SID Code shall be etched to a depth of between 10 to 25 microns and shall be legible throughout the lifetime of the mould.
” The Mould SID Code shall read from left to right when viewed from the read-out, or play side of the disc (see Fig.1, Schedule 1).
” The digits “IFPI” shall be in upper case characters and may have either a linear or a radial layout.
Additional Requirements for High-Density Optical Disc Formats (E.g., SACD, DVD)
” The Mould SID Code shall not be placed in an area that obscures the Mastering SID Code, or any user defined characters.
” The Mould SID Code shall be imprinted on all substrates whether containing valid programme content or not, including blank discs and recordable discs.
” The Mould SID Code shall not be imprinted in the clamping area.
” The Mould SID Code must be readable from left to right when viewed from the outside surfaces of the disc.
” Overprinting of the Mould Code for decorative purposes is permissible on a high density optical disc only.
(b) The Mastering, or LBR, SID Code
” Each Mastering SID Code that is issued will consist of the digits “IFPI” followed by a four, five or six digit code commencing with the letter “L”. A license holder will be issued a batch of sequential codes and must allocate a unique code to each separate Signal Processor or Laser Beam Recorder, depending on which piece of mastering equipment has been modified to apply the SID Code, under his control.
” The Mastering SID Code shall be added to the matrix band of the master during exposure on the Laser Beam Recorder. All subsequent stampers and masters (including mothers and stampers) and all discs manufactured from that master shall then bear the Mastering SID Code.
” The Mastering SID Code shall be positioned at a radius of between 18.0 mm and 22 mm from the center of the disc.
” The Mastering SID Code shall have a minimum character height of 0.5 mm.
” The Mastering SID Code shall be located in a metallized region of the disc.
” The Mastering SID Code shall be legible without magnification.
” The Mastering SID Code shall read from left to right when viewed from the read-out, or play side of the disc (see Fig.1, Schedule 1).
” The Mastering SID Code shall be installed in either the firmware of the Laser Beam Recorder (i.e. the software that forms an intrinsic part of the machinery and is not readily accessible by the operator of the facility) or embedded in the system controller (i.e. the signal processing system that controls the operation of the LBR) in such a way that the operator of the system is not able to alter the code.
” It is recommended that the space allocated exclusively for the Mastering SID Code (determined by the user and LBR supplier) shall consist of an arc of 30 . The Mastering SID Code shall be clearly separate from other features.
Additional Requirement for High-Density Optical Disc Formats (E.g., SACD, DVD)
The Mastering SID Code must not be obscured by the stack ring.
Variations for Different High-Density Disc Formats
” For the single layer, single side disc: If the dummy side of the disc is made from a scrap program disc, it shall bear the SID Code, even if not metallized.
” For the dual layer, single side disc: The Mastering SID Code must be recorded for both Layer 1 and Layer 0. At least one of the Mastering SID Codes (for either Layer 1 or Layer 0) must be clearly visible.
” For the single layer, double side disc: The Mastering SID Codes must be recorded on both sides of the disc. It is desirable that both Mastering SID Codes are clearly visible, but it is acceptable if the code is obscured due to restrictions of the printed area.
Fig.1: Cross-section of an Optical Disc
