Optical Media Regulation Act of 2003

The Videogram Regulatory Board is reorganized into the Optical Media Board (OMB) under the Office of the President.
OMB jurisdiction covers the entire Philippines, including all economic zones.

The Board consists of 4 ex officio members (Secretaries of DTI, DILG, DOF, and IPO Director-General) and 5 regular members appointed by the President.
Regular members: 3 from intellectual property-dependent industries, 1 consumer organization representative, and 1 from the academe.
Chairperson is appointed from the regular members, serving a 3-year term renewable once.
At least 2 members must be licensed Philippine Bar members.

Formulation and implementation of policies regulating optical media.
Licensing and qualification evaluation for establishments engaged in optical media activities.
Conduct inspections and apply reasonable force if necessary.
Obtain search warrants and take preventive custody of evidence.
Prosecute violations and impose administrative sanctions including fines, license suspensions, or closures.
Deputize local officials and other stakeholders for monitoring and enforcement.
Maintain records for at least five years and establish a database of licensed entities.

License required before engaging in importation, exportation, manufacture, replication, or distribution of optical media and related equipment or materials.
Separate licenses needed for each business activity and location.
Display of license in place of business is mandatory.

Licenses are valid for three years, subject to renewal or amendment.
Failure to secure a license cancels any existing permits from other authorities.
Licenses may be denied or revoked based on non-compliance, prior convictions, false information, or violation of license conditions.

Penalties include imprisonment from 30 days to 9 years and fines ranging from Php 25,000 to Php 3,000,000 depending on the offense.
Severe penalties imposed for unlicensed mastering, manufacture or replication, use of false SID codes, and commercial activities involving violating optical media.
Repeat offenses carry increased penalties.
Violators may face additional penalties under related laws such as the IP Code and the Electronic Commerce Act.

Aliens convicted are deported and barred from re-entry after serving sentences.
Government officials found guilty face perpetual disqualification from public office and voting rights suspension.
Juridical persons’ responsible officers are held liable.
OMB may deputize and coordinate with other government agencies and local authorities.

Confiscated materials and equipment violating the Act are forfeited to the government and disposed of legally.
Destruction of optical media allowed after final determination of violation but with retention of representative evidence samples.

VRB officials continue temporarily until OMB appointments are made, with prior VRB staff given priority for employment.
Transfer of VRB’s funds, assets, liabilities, and records to OMB.
Provisions apply similarly to magnetic media.
Classification of motion pictures on optical media remains under the MTRCB.
Pending cases from previous law continue prosecution.
Organizational structure and staffing to comply with Civil Service laws.
Appropriations initially from VRB budget, later from General Appropriations Act.
OMB to submit annual reports to the President and Congress.
Establishes a Congressional Oversight Committee on the OMB for five years.
IRR to be submitted within 3 months and approved within 30 days.
Contains separability clause; repeal of inconsistent laws including PD No. 1987.
Act effective 15 days after publication in Official Gazette or two newspapers.