Question & AnswerQ&A (MEMORANDUM CIRCULAR NO. 2018-002)
Optical Media, as defined by RA 9239, is a storage medium or device in which information including sounds and/or images or software code has been stored by mastering and/or replication, accessible and readable using a lens scanning mechanism employing a high intensity light source such as a laser or other means developed in the future.
Magnetic Media is defined as a storage medium characterized by a usually plastic base coated with ferric oxide powder which records or stores visual and/or aural information or software code, including magnetic tape, cassettes, video tape, diskettes, floppy discs, or any technical variations thereof determined by the Board.
Storage devices covered include USB Flash Drives, Thumb Drives, Secure Digital (SD) Cards, Network Attached Storage (NAS), External/Internal Hard Disk Drives (HDD), Solid State Drives (SSD), Cellular Phones, Tablet Computers, Portable Music Players, and Internet-Based File Storage and Synchronization Services.
Entities, institutions, sole proprietorships or similar establishments, including individuals engaged in the manufacturing, importation, exportation, distribution, sale, rental, and other commercial activities involving STORAGE DEVICES are required to register.
Commercial Purpose refers to all activities involving manufacturing, importation, exportation, distribution, sale, rental, and other commercial activities of STORAGE DEVICES with intent to profit, as cited in Section 13(a) of RA 9239.
Registered entities must maintain complete and accurate records of all business transactions related to STORAGE DEVICES and make such records available to the Optical Media Board (OMB) upon request for inspection purposes.
Failure to comply with licensing requirements results in suspension of operations for not less than 1 month but not more than 3 months, confiscation of storage devices, and/or a fine ranging from Php 50,000 to Php 100,000.
Failure to comply with reportorial requirements is punishable by suspension of operations for not less than 3 months but not more than 6 months and/or fines ranging from Php 100,000 to Php 500,000.
All permits, licenses, or registrations issued by other government units for entities involved with STORAGE DEVICES without an OMB license shall be automatically cancelled pursuant to Section 9, Rule 2, Title 11 of the IRR of RA 9239.
No, OMB licensing and permits comply with RA 9239 but do not exempt entities from other licensing or legal requirements imposed by other government agencies.
This Circular takes effect within fifteen (15) days from its publication date.