Compulsory Licensing of Educational Books

The decree responds to the spiralling of prices of educational, scientific, or cultural books and materials reaching very serious proportions.
The decree declares it to be in the national interest to make such books and materials available to everyone at the least cost.
The decree provides that achieving least cost is done through compulsory licensing and reprinting as a temporary or emergency measure when prices become exorbitant and detrimental to the national interest.

Reprinting may be undertaken when the price of any educational, scientific or cultural book, pamphlet and other written materials, whether domestic or foreign origin, becomes so exorbitant as to be detrimental to the national interest.
The determination and declaration that a price is exorbitant and detrimental is made by a committee composed of:
- the Secretary of Education and Culture,
- the Director-General of the National Economic and Development Authority, and
- the Chairman of the Media Advisory Council.
The decree limits reprinting to the purpose of making the books and materials available to the people at reasonable cost.
Reprinting is allowed by either the Government or any private printer or printers for a limited period.

Reprinted books, pamphlets, and materials must bear proper acknowledgment of:
- the source,
- authorship,
- copyright proprietors,
- and past printers, if known.
Reprinted copies must also display the names and addresses of the reprinter or reprinters.
If a reprinted book, pamphlet, or material is abbreviated or edited in any manner, the fact of such editing or abbreviation must be stated.
The following inscription must appear on the covers of the reprinted items:
- "Export of this Book or material from the Philippines is punishable by law. The export of such reprints under any circumstance is hereby prohibited."

Reprinting is conditioned on the reprinter paying, in local currency, a royalty of three per centum (3%) of the gross selling price.
The royalty payment is due if so demanded by the authors, publishers or copyright proprietors concerned, whoever is legally entitled thereto.
For non-resident authors, publishers or copyright proprietors, royalties must be paid only:
- to them personally in the Philippines, or
- to their respective representatives or branch offices in the Philippines.

A person who violates the provisions of the decree is punished upon conviction.
The criminal penalty is imprisonment of not less than six months nor more than two years.
The fine is not less than Five Thousand Pesos nor more than Ten Thousand Pesos.
If the violation is committed by a firm, company, or corporation, the manager or person in charge of the management of the business is responsible.
Books and materials printed or published or exported in violation of the decree are immediately confiscated.
The establishment that printed, published, or exported in violation of the decree must be closed forthwith, and its operations must be discontinued.

The named committee must promulgate rules and regulations for the implementation of the decree.

The decree operates as a temporary or emergency measure tied to the determination that prices are exorbitant and detrimental to the national interest.
The decree expressly applies immediately, overriding contrary provisions in any law, decree, executive order, treaty, or executive agreement.