OPTICAL MEDIA ACT OF 2003

Case Overview and Summary

Summary of the Optical Media Act of 2003

Policy and General Provisions (Sections 1-3):
- Regulates the mastering, manufacture, replication, importation, and exportation of optical media to protect intellectual property rights.
- Defines key terms such as "optical media", "mastering", "manufacture", "replication", "economic zone", "license", "manufacturing equipment", "manufacturing material", and "source identification (SID) code".

The Optical Media Board (OMB) (Sections 4-12):
- Reorganizes the Videogram Regulatory Board into the Optical Media Board (OMB).
- Outlines the composition, qualifications, compensation, and powers of the OMB and its Chairperson/CEO.
- The OMB has the power to grant, renew, deny, suspend, or cancel licenses for optical media activities (Section 10c).
- The OMB can conduct inspections, obtain search warrants, and act as a complainant in criminal prosecutions (Sections 10d-f).
- The OMB can impose administrative sanctions, including fines, confiscation, and license suspension/cancellation (Section 10g).

Licensing and Regulatory Provisions (Sections 13-18):
- Requires licenses from the OMB for importation, exportation, acquisition, sale, distribution, possession, operation, mastering, manufacture, or replication of optical media, equipment, and materials (Section 13).
- Licenses are valid for 3 years and can be amended, renewed, or denied based on specified grounds (Sections 14-16).
- Existing establishments must register with the OMB within 30 days of the implementing rules (Section 17).
- The OMB shall prescribe a system of Source Identification (SID) codes to be applied to all optical media (Section 18).

Penal Provisions (Sections 19-23):
- Outlines penalties for various offenses, including imprisonment from 3 to 9 years and fines from Php 500,000 to Php 3,000,000 (Section 19).
- Penalties are based on the size of operations, value of articles, and period of violation (Section 20).
- Aliens will be deported, government officials will be disqualified, and juridical persons will hold responsible officers liable (Section 21).
- The OMB can solicit assistance from other agencies and deputize personnel for enforcement (Section 22).
- Seized materials in violation will be confiscated and disposed of, with representative samples retained as evidence (Section 23).

Transitory and Miscellaneous Provisions (Sections 24-37):
- Provides for the transition from the Videogram Regulatory Board to the OMB, including transfer of funds, assets, liabilities, and records (Sections 24-25).
- Allows for the regulation of magnetic media (Section 26).
- Establishes a Congressional Oversight Committee on the OMB for 5 years (Section 33).
- Requires implementing rules and regulations to be submitted within 3 months and approved within 30 days (Section 34).
- Repeals Presidential Decree No. 1987 and other inconsistent laws (Section 36).
- Provides for appropriations, annual reports, and an effectivity date 15 days after publication (Sections 31-32, 37).