Philippine Music Industry Act

Senate Offiep of the secretary ) TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session ) 25 AUG -4 P1:42 SENATE RECENED BY S. No. Introduced by Senator Loren Legarda AN ACT CREATING THE MUSIC DEVELOPMENT COUNCIL OF THE PHILIPPINES, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES EXPLANATORY NOTE The creative economy plays an increasingly vital role in national development. In 2024, creative industry-related activities contributed 7.3% to the country's Gross Domestic Product (GDP), with a recorded Gross Value Added of Php 1.94 trillion, an 8.7% increase from Php 1.78 trillion in 2023.1 Among the many sectors under the creative economy, music remains one of the most culturally resonant yet persistently underrepresented in both policymaking and economic strategy. Filipino music serves as a living narrative of our culture, reflecting the identity, perspectives, and everyday experiences of our people. Every lyric and melody carries the voice of the Filipino. While there is limited written documentation on Philippine music prior to Magellan's arrival in 1521, historical accounts from friars, civil servants, and travelers describe the presence of tradition of vocal and instrumental music?. These include instruments made of bronze, bamboo, or wood, and songs that range from epic chants and courtship melodies to work songs and children's rhymes, many of which are still practiced by indigenous communities today. 1 https://psa.gov.ph/content/philippine-creative-economy-expands-87-percent-2024-accounted-73- percent-gross-domestic 2 https://ncca.gov.ph/about-ncca-3/subcommissions/subcommission-on-the-arts-sca/music/philippine- music-a-historical-overview/

Music is deeply woven into our culture. Singing, in particular, is a cultural trait proudly embraced by many Filipinos as an artistic expression and a form of community connection, and a well-known hallmark of Filipino cultural identity. Despite this, the national music sector remains fragmented and under- supported. There is a clear need to improve the representation, organization, and support systems for Filipino music and its creators. This bill seeks to establish mechanisms that will ensure greater exposure and appreciation of Original Pilipino Music (OPM) across all media platforms. This legislation proposes the creation of the Music Development Council of the Philippines, a centralized and policy-making body mandated to craft and implement a comprehensive National Music Industry Development Plan. The Council will oversee the growth, regulation, protection, and international promotion of the Philippine music industry, and serve as a platform for coordination and strategic direction. The Council will collaborate with key government agencies such as the National Commission for Culture and the Arts (NCCA), National Commission on Indigenous Peoples (NCIP), Department of Labor and Employment (DOLE), Department of Foreign Affairs (DFA), and Department of Science and Technology (DOST), among others. These partnerships will integrate Filipino music into areas of education, employment, trade, technology, heritage preservation, and cultural diplomacy. The bill also seeks to: a. Strengthen intellectual property protection for Filipino musical works; b. Support the industrialization of both local and indigenous musical instruments; c. Provide technical assistance to local government units in organizing music- centered festivals and initiatives; and d. Institutionalize the inclusion of OPM in radio and television programming by requiring minimum broadcast standards for original Filipino compositions. In recognition of the growing number of unsigned and independent music creators in the Philippines, the bill also establishes targeted programs and incentive- driven partnerships to support their professional development, facilitate the production and release of original works, and promote equitable access to both local and global markets.

This measure not only honors music as a vital form of cultural expression. ot also positions the music industry as a key driver of economic growth and creative innovation. It is a strategic step forward in protecting artists' rights, creating sustainable livelihood opportunities, and elevating Filipino music on the global stage. In view of the foregoing, the early passage of this bill is earnestly requested. LOREN LEGARDA

Senate offier of the secretarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG -4 P1:42 SENATE RECEIVED BY S. No. 826 Introduced by Senator Loren Legarda AN ACT CREATING THE MUSIC DEVELOPMENT COUNCIL OF THE PHILIPPINES, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: CHAPTER I GENERAL PROVISIONS

Section 1. Short Title. - This Act shall be known as the "Philippine Music

4 Industry Act".

Sec. 2. Declaration of State Policy. - Pursuant to the constitutional guarantee

6 of freedom of expression and protection and promotion of the Philippine musical 7 heritage under the 1987 Constitution, it is hereby declared the policy of the State to recognize, protect and promote the country's artistic and cultural heritage as expressed in all forms/ types of music and protect the rights of the artists in the Philippine musical industry. CHAPTER II CREATION AND ORGANIZATION

Sec. 3. Creation of the Music Development Council of the Philippines. - To

carry out the provision of this Act, there is hereby created a Music Development

1 Council of the Philippines, hereinafter referred to as Council, which will be lodged 2 under the Office of the President.

Sec. 4. Powers and Functions of the Council. - The Council shall have the

following powers and functions: a. To craft and spearhead the implementation of a National Music Industry Development Plan and work for its adoption and implementation by the Council as well as appropriate government agencies; b. To encourage and undertake activities that actively promote the development of the Philippine music industry as a whole and promote its participation in both local and international markets; c. To develop and promote programs to enhance the talents and skills of artists and various stakeholders such as but not limited to music theory, composition, sound production, and engineering, as well as financial literacy and business and marketing capability of Filipino artists; d. To work alongside the Department of Education in improving the state and quality of music education in the Philippines as part of MAPEH (Music, Art, Physical Education, and Health) in the K-12 system; e. To establish and maintain a registry of music schools or similar institutions that provide musical instruction in the country; f. To establish organize, operate, and maintain local and international music festivals, exhibitions, and other similar activities that will showcase and promote Filipino music; g. To link up with UNESCO's Creative Cities Network and help usher UNESCO Creative Cities of Music in the Philippines; h. To enhance the monitoring and implementation of the Intellectual Property Code with regards to the protection of works of Filipino artists; i. To establish and maintain baseline data with regards to the various segments of the music industry, such as but not limited to, job generation, revenue generation from sources including but not limited to domestic and export licensing, in partnership with the DOF, DTI, and NEDA;

j. To work with the National Commission on Indigenous Peoples (NCIP) on establishing and maintaining a national indigenous peoples' music database; k. To work with the National Commission for Culture and the Arts (NCCA) and the National Commission on Indigenous Peoples (NCIP) on the preservation of musical traditions in the Philippines; I. To work alongside the Department of Labor and Employment (DOLE) and the Department of Foreign Affairs (DFA) as well as other pertinent agencies in generating employment for artists both locally and abroad; m. To promote and industrialize the local production of musical instruments; n. To work alongside the Department of Science and Technology (DOST) and the NCIP to preserve, promote, and industrialize the creation of indigenous musical instruments such as but not limited to the kudyapi, kubing, kulintang, gabbang, gangsa; o. To provide technical assistance to local government units in organizing their own music festivals or activities that hinge upon Filipino music; p. To prescribe the procedures for the exercise of its power and functions as well as the performance of the Council's duties and responsibilities; q. To establish support mechanisms for unsigned and independent songwriters, including but not limited to grant programs, music release and distribution assistance, artist development funds, and partnerships with digital platforms to promote original Filipino music; r. To determine the Council's organizational structure and staffing pattern; s. To select and appoint officers and employees of the Council in accordance with Civil Service laws, rules and regulations; t. To acquire, manage, and hold such real and personal property as may be necessary to carry out the purposes and objectives of this Act; u. To invest funds and other assets in such activities or undertakings that shall directly and indirectly, promote the development of the Philippine musical industry, including the recognition and protection of rights of industry workers and other stakeholders, including the intellectual

property rights to all creations, and other rights and conditions as may be covered by this Act; and v. To perform such other functions as may be necessary to carry out the provisions of this Act.

Sec. 5. The Organizational Structure of the Council. — The Council shall be

composed of the following members: a. The Chairperson of the Council - The Chairperson shall be the head of the Council and its Chief Executive Officer, who shall ensure overall administrative supervision to ensure the effective and efficient implementation of the policies laid down by the Council. The Chairperson, who shall have the rank and salary of an Undersecretary of a Department as provided for in the Salary Standardization Law, must possess the following qualifications: i. The Chairperson shall have worked in the music industry for at least ten (10) years and be a person who possesses sound technical and administrative proficiency; ii. The Chairperson should be knowledgeable of the technical and artistic aspects of any one or more forms of music as a formal discipline or of the business aspects of music as an industry; iii. The Chairperson shall demonstrate integrity, independence, and have good moral character; and iv. The Chairperson should be fully committed to the growth and development of Philippine music as an art and of Philippine music as an industry, as well as advancing the objectives and goals of this Council. b. Roles and Functions of the Chairperson - The Chairperson shall have the following functions: i. Execute and administer the policies, plans, and programs approved by the Council; ii. Direct and supervise the operations and internal affairs of the Council;

iii. Establish the internal organization and administrative procedures of the Council; iv. Recommend to the Council the appointment, transfer or detail, suspension, dismissal for cause of its officials and employees; and V. Perform such other functions which the Council may assign. c. The Council - The Council shall have eleven (11) members, five of whom shall be appointed regular members, while the other six shall be appointed in an ex-officio capacity; i. Regular Members of the Council - The five (5) regular members of this Council shall be as follows: 1. A duly authorized representative from a legally constituted musical artists' association; 2. A duly authorized representative from a legally constituted music producers' association; 3. A duly authorized representative from a legally constituted musical performers' association; 4. duly authorized representative from a legally constituted music composers' association; and 5. A duly authorized representative from the academe. ii. Ex- Officio Members of the Council - The six (6) members who shall be ex-officio members of the Council are the following: 1. The Secretary of the National Economic Development Authority or his/her duly designed representative; 2. The Secretary of the Department of Trade and Industry or his/her duly designed representative; 3. The Secretary of the Department of Labor and Employment or his/her duly designed representative; 4. The Secretary of the Department of Foreign Affairs or his/her duly designed representative; 5. The Secretary of the Department of Education or his/her duly designed representative; and

6. The Chairperson of the National Commission for Culture and the Arts, or the Head of the National Subcommittee on Music under the Subcommission on the Arts. d. Selection and Appointment of Chairperson and Regular Members - The Chairperson and the regular members of the Council shall be selected and appointed by the President from a shortlist submitted by an ad hoc selection committee formed by the President for the purpose of selecting the Chairperson and the regular members of the council. i. The ad hoc committee shall be composed of select members and duly authorized representatives of the musical artists' associations, the musical producers' association, and representatives from the academe, preferably from conservatories of music in the Philippines.

Sec. 6. Term of Office. - The Chairperson and the five (5) regular members

shall hold office for a term of three (3) years unless sooner removed by the President; Provided, that they shall be eligible for reappointment after the expiration of their respective terms; Provided, further, that no Chairperson or member shall serve for more than two (2) consecutive terms. If the Chairperson or any of the members fails to complete his/her term, the person appointed to fill the vacancy shall serve only for the unexpired portion of the vacated term who she/he succeeded; Provided, finally, that such service of the unexpired portion shall not be counted as a term.

Sec. 7. Schedule of Regular Council Meetings. - The Council shall meet at least

once a month or as often as necessary at the call of the Chairperson or a majority of the members of the Council. A majority of the members of the Council shall constitute a quorum to do business. The members of the Council shall be entitled to honoraria based on existing government accounting and auditing rules and regulations. CHAPTER III OPM BROADCASTING REQUIREMENT

Sec. 8. Obligations of Radio Stations. - All radio stations that have programs

with a musical format shall broadcast a minimum of four (4) original Pilipino musical

1 compositions in every clock hour of a program with a musical format or shall 2 cumulatively broadcast original Pilipino musical compositions for at least twenty 3 percent (20%) of the total number of minutes dedicated to programs with a music 4 format per day, whichever is applicable. For purposes of this section, "original Pilipino 5 musical composition" shall refer to any musical composition created by a Filipino, 6 whether the lyrics be in Filipino, English or in any other language or dialect.

Sec. 9. Obligations of Television Stations. - All television stations that have

programs with a musical format shall broadcast a minimum of four (4) original Pilipino 9 musical compositions in every clock hour of a program with a musical format or shall 10 cumulatively broadcast original Pilipino musical compositions for at least twenty percent (20%) of the total number of minutes dedicated to programs with a musical format per day, whichever is applicable. For purposes of this section, "original Pilipino musical composition" shall refer to any musical composition created by a Filipino, 14 whether the lyrics be in Filipino, English or in any other language or dialect.

Sec. 10. Exception. - Sections 8 and 9 of this Act shall not apply when the radio

16 station or TV station program substantially devotes its broadcast within the clock hour to a live event that is of national or local significance or is sanctioned by the Philippine government.

Sec. 11. Penalty. - Any franchise holder or operator of a radio station or

20 television station which fails to broadcast the minimum number of original Pilipino musical compositions in every clock hour of a program, or fails to comply with the applicable daily minimum requirement under this Act, shall be fined in the amount of 23 Five Thousand Pesos (P5,000.00) per violation. The National Telecommunications Commission (NTC) may, after due notice and hearing, suspend or cancel the Certificate of Registration and Authority to operate of any radio or television station in the event of repeated violations of this Act or its implementing rules and regulations. CHAPTER IV SUPPORT FOR UNSIGNED AND INDEPENDENT MUSIC CREATORS, AND PUBLIC-PRIVATE COLLABORATION

Sec. 12. Programs for Unsigned and Independent Music Creators. - To foster

2 inclusivity and support the development of Filipino musical talent beyond the formal 3 recording industry, the Council shall implement dedicated programs for unsigned and independent music creators. These shall include, but are not limited to: a) Financial grants and production assistance to support the creation, recording, and release of original musical works by independent creators; b) Mentorship, incubation, and professional development programs, such as songwriting and production camps, industry training, and access to musical networks; c) A national submission and selection platform to identify promising original compositions and recordings for Council-endorsed support and promotion; d) Technical and legal assistance in protecting intellectual property rights, managing digital distribution, and navigating music monetization mechanisms; e) Opportunities to perform or be featured in official Council-backed festivals, competitions, and promotional platforms, both locally and internationally; f) Provide access to digital infrastructure, such as recording labs, music production software, and online publishing platforms, especially in underserved regions; g) Partner with local government units, state universities and colleges, and community-based organizations to identify and support grassroots music creators. These programs shall prioritize equity, cultural diversity, regional representation, and accessibility for creators from marginalized or underrepresented communities. For the purpose of this Act, "Unsigned and Independent Music Creators" shall refer to Filipino individuals or groups who compose, produce, or perform original 30 musical works and are not, at the time of engagement with any program of the Council, under an exclusive recording, management, or publishing agreement with a 32 commercial music label, production company, or agency. They may include but are

1 not limited to songwriters, composers, vocalists, instrumentalists, producers, and 2 sound engineers who distribute music through independent or digital means without 3 the formal representation or backing of a commercial entity.

Sec. 13. Public-Private Partnerships and Incentives for Promotion and

5 Production. - To facilitate the commercial release and exposure of original Filipino 6 music by unsigned and independent creators, the Council shall establish partnerships with private entities, including record labels, distributors, streaming platforms, and 8 production companies. For this purpose, the Council may: a) Accredit private sector partners that commit to producing, distributing, or promoting original works by independent Filipino artists identified through Council programs; b) Recommend the granting of fiscal incentives, in coordination with the Board of Investments (BOI), the Bureau of Internal Revenue (BIR), and the Department of Finance (DOF), to accredited private entities that invest in and promote original Filipino works by unsigned or independent creators, in accordance with applicable laws and incentive frameworks; c) Offer non-fiscal incentives, including official recognition, branding privileges, and priority inclusion in national cultural events or promotional campaigns; d) Enter into co-financing or co-production agreements, subject to government accounting, procurement, and audit rules, to support select music releases with demonstrable industry development potential; e) Promote ethical contracting standards and fair business practices in the engagement of unsigned and emerging artists by the private sector. All such partnerships shall respect the rights and creative autonomy of music creators and contribute to the sustainable growth of the Philippine music industry. CHAPTER V MISCELLANEOUS PROVISIONS

Sec. 14. Authority to Accept Donations and Official Development Assistance. -

The Council may accept donations, contributions, grants, bequests, or gifts, in cash or

1 in kind, from various sources, domestic or foreign, including Official Development 2 Assistance (ODA), except from producers and distributors for purposes that may 3 create a conflict of interest with the functions of the Council. All such donations and assistance shall be deemed automatically appropriated 5 for the purposes specified by the donor or, in the absence thereof, for programs and 6 projects approved by the Council, subject to applicable government accounting, 7 auditing, and procurement rules and regulations: Provided, That cash donations shall not be used to fund the personal services requirements of the Council. Any donation, contribution, subsidy, or financial aid made to the Council shall 10 be exempt from all forms of taxes and shall constitute allowable deductions in full 11 from the income of the donors or contributors for income tax purposes.

Sec. 15. Relationship with Other Government Agencies. - The Council may

request any department, bureau, office, agency, or instrumentality of the government 14 for such assistance as may be needed in the performance of its functions.

Sec. 16. Data Privacy Protection. - No provisions of this Act shall be in violation

16 of the provisions of Republic Act No. 10173 or the "Data Privacy Act of 2012"

Sec. 17. Appropriations. — The amount of Two Hundred Million Pesos

(P200,000,000.00) is hereby appropriated to finance the operations of the Council for the first year, to be charged against the funds of the National Treasury not otherwise appropriated. Thereafter, such amounts as may be necessary and sufficient to finance its operations and activities shall be included in the annual General Appropriations Act.

Sec. 18. Annual Report. — The Council shall, within ninety (90) days after the

end of every fiscal year, submit to the President and Congress, an annual report on its compliance with, or accomplishments under this Act, together with its plans and recommendations to improve and develop its capability to enforce the provisions of this Act, and complete accounting of transactions with respect to any funds received under this Act. The annual report shall include measurable and outcome-oriented performance metrics on the implementation of Sections 12 and 13, including the number of 30 independent creators supported, partnerships formed, and outcomes achieved.

CHAPTER VI FINAL PROVISIONS

Sec. 19. Implementing Rules and Regulations. - The Council shall issue the

necessary rules and regulations to implement the provisions hereof.

Sec. 20. Repealing Clause. —All laws, decrees, orders, issuances, rules, and

regulations which are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 21. Separability Clause. - If any provision of this Act is declared

unconstitutional or invalid, the remainder of the provisions thereof not affected shall remain in force and effect.

Sec. 22. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in two (2) national newspapers of general circulation. Approved,