QuestionsQuestions (PRESIDENTIAL DECREE NO. 1987)
PD No. 1987 creates the Videogram Regulatory Board to regulate videograms and videogram-related activities (importation, production, distribution, exhibition, sale, lease, disposition, etc.) in order to address unregulated circulation, protect the movie industry, rationalize classification and censorship, and enable proper taxation and enforcement.
Its principal office is in Metro Manila and it is placed under the Office of the President of the Philippines.
It consists of a Chairman, Vice-Chairman, and eighteen (18) members appointed by the President to serve a one (1) year term, unless removed earlier by the President for cause. Members may be reappointed, and a replacement for a vacancy serves only the unexpired portion of the term.
They must be natural-born citizens, at least 21 years old, of good moral character and standing in the community. Additionally, due consideration must be given to multi-sectoral expertise in the videogram industry, and at least five (5) members must be members of the Philippine Bar.
The Board may supervise, regulate, grant, deny, or cancel permits; approve, disapprove, delete objectionable portions from, and/or prohibit videograms that are objectionable under contemporary Filipino cultural values or injurious to public interest; and classify videograms (e.g., for general patronage, for adults only, or other categories the Board determines).
Examples include content that incites subversion/insurrection/rebellion/sedition; undermines confidence in government authorities; glorifies criminals or condones crimes; is libelous/defamatory; serves only excessive violence or hard-core pornography; abets prohibited drugs trafficking; or constitutes contempt of any court/quasi-judicial tribunal.
The Board may close video theaters and similar establishments engaged in public exhibition/showing of videograms that violate the Decree or the Board’s rules and regulations.
The Board has the power to review and examine all videograms and related publicity materials/advertisements for classification purposes.
The Board is authorized to cause prosecution, on behalf of the People of the Philippines, of violators of the Decree and its rules and regulations.
The Chairman is the Chief Executive Officer. He executes and implements Board decisions, directs and supervises Board operations, establishes internal organization/procedures, recommends personnel appointments to the Board, and performs other functions not specifically lodged in the Board.
No person (natural or juridical) may engage in specified videogram activities unless first registered with and permitted by the Board. Registration and permit are a condition precedent to securing the necessary business permit or license from appropriate authorities.
Even if registered and permitted, no person may copy/reproduce any cinematographic art without the written consent/approval of the producer, importer, or licensee. Also, copying/reproduction is not allowed within six (6) months after first released for theatrical exhibition, unless the producer/importer/licensee agrees to a shorter period.
No videogram may be sold, leased, or otherwise disposed of unless first registered with the Board with the corresponding registration identification or seal in the form and manner provided by the Board.
Violators face mandatory imprisonment of three (3) months and one (1) day to one (1) year plus a fine of not less than P50,000 but not more than P100,000. If committed by a juridical person, specified corporate officers (chairman, president, secretary, treasurer, or partner responsible) are penalized. Probation under PD No. 968 (Probation Law) does not apply to violations of this Decree and its implementing rules.
The province collects 30% of the purchase price or rental rate for each sale/lease/disposition. Half (50%) accrues to the province and the other half (50%) to the municipality where collected; in Metropolitan Manila, it is shared equally by the city/municipality and the Metropolitan Manila Commission.
The tax is due and payable within the first 20 days of the month next following the period to which it pertains, based on a true and complete return of gross receipts from the preceding month. Late payment triggers surcharges, interests, and penalties per the Local Tax Code. Wilful neglect or fraudulent filing/false return subjects the taxpayer to an additional 50% surcharge plus interest and penalties per the Local Tax Code.
Existing videogram establishments are given 45 days from effectivity to register with and secure a permit from the Board and to register their inventories. After that period, any videogram found in the possession of a person engaged in the business without the required proof of registration is prima facie evidence of violation, even if for private showing or public exhibition.