Title
Philippine Creative Industries Development Act
Law
Republic Act No. 11904
Decision Date
Jul 28, 2022
The Philippine Creative Industries Development Act establishes a council to promote and support the growth of the country's creative industries by protecting the rights of artists and stakeholders, fostering employment opportunities, and enhancing financial mechanisms for sustainable development.

Policy, purpose, and defined “creative industries”

  • The State policy under the Act is to promote and support Philippine creative industries by protecting and strengthening the rights and capacities of creative firms, artists, artisans, creators, workers, indigenous cultural communities, content providers, and stakeholders (Section 2).
  • The State must establish a creative industries development council to implement a long-term plan for development and promotion, with programs aimed at: creating opportunities and employment, nurturing human resources, ensuring financial-enabling mechanisms, and providing incentives to sustain Filipino excellence (Section 2).
  • Section 3 defines creative industries as trades involving persons—natural or juridical—that produce cultural, artistic, and innovative goods and services originating in human creativity, skill, and talent, with potential to create wealth and livelihood through generation and utilization of intellectual property.
  • Section 3 states that creative industries include activities directly or indirectly involved in creation, production and manufacturing, performance, broadcasting, communication and exhibition, or distribution and sale of works and other subject matter, in accordance with intellectual property protection laws, rules, and regulations.
  • Section 3 enumerates creative industry domains (with a non-exhaustive list), including:
    • Audiovisual Media Domain
    • Digital Interactive Media Domain
    • Creative Services Domain
    • Design Domain
    • Publishing and Printed Media Domain
    • Performing Arts Domain
    • Visual Arts Domain
    • Traditional Cultural Expressions Domain
    • Cultural Sites Domain
    • Other domains and industries the Council may determine, subject to guidelines and criteria issued by the Council (Section 3(j)).

Philippine Creative Industries Development Council

  • The Act creates the Philippine Creative Industries Development Council (“Council”) to spearhead the development and promotion of the Philippines’ creative industries (Section 4).
  • The Council has nineteen (19) members, composed of ten (10) ex officio members and nine (9) regular members from the private sector (Section 4).
  • The ten (10) ex officio members are:
    • Secretary of the Department of Trade and Industry (DTI) as Chairperson
    • Secretary of Department of Education (DepEd)
    • Secretary of Department of Science and Technology (DOST)
    • Secretary of National Economic and Development Authority (NEDA)
    • Secretary of Department of Tourism (DOT)
    • Secretary of Department of Information and Communications Technology (DICT)
    • Secretary of Department of the Interior and Local Government (DILG)
    • Chairperson of the Commission on Higher Education (CHED)
    • Chairman of the National Commission for Culture and the Arts (NCCA)
    • Director General of the Intellectual Property Office of the Philippines (IPOPHL) (Section 4(a)).
  • Section 4(a) authorizes each ex officio member to designate a next-in-rank official as a permanent alternate whose acts are considered the acts of the principal.
  • The nine (9) regular members are private-sector representatives for each domain:
    • Audiovisual Media
    • Digital Interactive Media
    • Creative Services
    • Design
    • Publishing and Printed Media
    • Performing Arts
    • Visual Arts
    • Traditional Cultural Expressions
    • Cultural Sites (Section 4(b)).

Appointment, terms, meetings, quorum

  • Regular members are appointed by the President from a list submitted by the DTI Secretary, after consultation with other ex officio members and stakeholders in each domain (Section 4(b)).
  • The DTI Secretary must nominate at least three (3) nominees for every regular seat, and nominees must come from the private sector with at least ten (10) years of experience in the relevant domain (Section 4(b)).
  • Each nominee must be endorsed by a business support organization or creative workers association relevant to the domain represented (Section 4(b)).
  • The Council elects a co-chair among the nine (9) regular members (Section 4).
  • Regular members serve six (6) years, with earlier termination due to death, resignation, or removal for cause, and replacements serve only the unexpired portion of the term (Section 4).
  • For the first set of regular members, five (5) serve three (3) years and four (4) serve six (6) years, as determined by the President (Section 4).
  • Regular members receive per diem every meeting in accordance with existing rules and regulations (Section 4).
  • The Council meets at least once every quarter or as necessary at the call of the Chairperson or majority of members (Section 6).
  • Members unable to physically attend may participate and vote through remote communication technologies, including videoconferencing, teleconferencing, or other alternative modes that allow reasonable opportunities to participate (Section 6).
  • A majority of incumbent members constitutes quorum to do business (Section 6).

Creative Workers’ Welfare Committee

  • The Act creates the Creative Workers’ Welfare Committee as a standing committee of the Council (Section 5).
  • The Committee must ensure creative freelancers and creative workers have access to sustainable and dignified work in the creative industries (Section 5).

Council mandate and coordination duties

  • The Council must formulate and implement a Philippine Creative Industries Development Plan with economic goals and key performance indicators, including value creation, contribution to gross domestic product, job creation, market creation and expansion (domestic and international), investment targets, and creative intellectual property targets, plus strategies aligned with Section 8 (Section 7(a)(1)).
  • The Council must review all existing government policies, plans, programs, and projects supporting creative industries and formulate national policies, plans, and programs in coordination with government agencies, NGOs, business support organizations, and creative workers associations (Section 7(a)(2)).
  • The Council must classify creative industries into subsectors and create technical panels, working groups, or task forces, integrated with PSA for use in the Philippine Standard Industry Classification (Section 7(a)(3)).
  • The Council must issue guidelines and criteria identifying stakeholders who may receive aid from the State during national emergencies (Section 7(b)(1)).
  • The Council must issue guidelines for accreditation of business support organizations and creative workers associations entitled to Council programs, and must also create programs assisting stakeholders in establishing these organizations and associations (Section 7(b)(2)).
  • The Council must encourage persons in creative industries to join business support organizations and/or creative workers associations (Section 7(b)(3)).
  • The Council must establish and promote continuing dialogue mechanisms among government, business support organizations, creative workers associations, and the academe for planning and evaluation of policies, programs, and projects affecting stakeholders (Section 7(b)(4)).
  • For marketing and promotion, the Council must develop cooperative exchanges and coordinate overseas collaborations with the Department of Foreign Affairs (DFA) and other agencies (Section 7(c)(1)).
  • The Council must endorse prospective multi- and bilateral international trade agreements benefiting Philippine creative industries, and endorse UNCTAD/UNESCO creative economic activities, conferences, and events for possible country representation in coordination with UNACOM (Section 7(c)(2)).
  • The Council must ensure promotion, marketing, distribution, export, and consumption of creative industry outputs in local and international markets in coordination with BOI, EMB, FSTC, and CITEM, among others, and coordinate cultural properties programs with NCCA under Republic Act No. 10066 (Section 7(c)(3)).
  • The Council must support local and international creative festivals, exhibitions, trade shows, and similar activities to disseminate and promote Filipino creativity as a tool for sociocultural and economic development (Section 7(c)(4)).
  • The Council must assist the DOT in integrating Philippine creative industries into the national tourism development plan (Section 7(c)(5)).
  • For capacity-building, the Council must assist in monitoring and protection of intellectual property rights of Filipino creative industry stakeholders (Section 7(d)(1)).
  • The Council must assist in protection of indigenous traditional cultural properties utilized for commercial purposes in coordination with the National Commission for Indigenous Peoples (NCIP) (Section 7(d)(2)).
  • The Council must provide training, capacity-building, and support to stakeholders in business development, financial literacy, ethics, digital skills, taxation, design thinking, contracts, negotiations, and entrepreneurship, in partnership with the private sector (Section 7(d)(3)).
  • The Council must generate and mobilize resources from domestic and foreign sources, receive donations and other conveyances by gratuitous title, and rationalize use and equitable distribution through mechanisms including competitive grants (Section 7(e)(1)).
  • The Council may enter contracts of every kind, sue and be sued, acquire/utilize/dispose property needed for purposes of the Act, and manage its corporate seal (Section 7(e)(2)–(5)).
  • The Council may raise or borrow funds within legal limits, subject to approval or opinion of the Monetary Board of BSP and the Department of Finance (DOF), and may issue bonds, promissory notes, and other securities, secured by guarantees, pledges, mortgages, deeds of trust, or assignments of property/assets (Section 7(e)(4)).
  • The Council may delegate powers lawfully delegable to the Executive Director or, in the Executive Director’s absence, to Deputy Executive Directors, upon terms deemed fit (Section 7(e)(6)).
  • The Council may create ad hoc committees or technical working groups representing different creative industries and appropriate government agencies to discuss issues and recommend policies or programs (Section 7(e)(7)).
  • The Council must promulgate rules and regulations necessary to attain purposes and objectives of the Act (Section 7(e)(8)).
  • The Council must coordinate and synergize plans and programs with NGAs with existing mandates, including but not limited to:
    • Film Development Council of the Philippines
    • National Council for Children’s Television
    • Design Center of the Philippines
    • Cultural Center of the Philippines
    • National Museum
    • National Book Development Board (Section 7).
  • The Council may invite these NGAs to present plans, proposals, and programs during regular meetings (Section 7).

Development plan deadlines, timelines, contents

  • In coordination with NGAs referred to in Section 7, the Council formulates the Philippine Creative Industries Development Plan (“Plan”) setting objectives, targets, strategies, and activities for development and promotion (Section 8(a)).
  • The Plan must be submitted to the President for approval within one (1) year after the Act’s effectivity (Section 8(a)).
  • The Plan must undergo mandatory review every three (3) years (Section 8(a)).
  • The Plan must include a three-year, six-year, and ten-year development timeline for its vision, mission, goals, and milestones (Section 8(a)).
  • The Plan must include economic and measurable targets and key performance indicators for value creation, GDP contribution, job creation, market creation and expansion, investment targets, and creative intellectual property targets (Section 8(b)(a)).
  • The Plan must include governance/policy framework review for implementation (Section 8(b)(b)).
  • The Plan must include scientific, interdisciplinary, policy-oriented research findings on technological advancements, distribution models, product lines, and value chains (Section 8(b)(c)).
  • The Plan must analyze technological, trade, consumption, demography, environment, and health changes affecting labor market for creative talent and identify skills gaps in coordination with the private sector (Section 8(b)(d)).
  • The Plan must identify strategic investment areas enabling MSMEs to compete, sustainably grow, and scale (Section 8(b)(e)).
  • The Plan must include financial assistance programs, investment schemes, loan programs, and guarantees for MSMEs (Section 8(b)(f)).
  • The Plan must include technical, technological, and financial assistance programs for development, processing, commercialization, and marketing of goods and services (Section 8(b)(g)).
  • The Plan must include programs to strengthen linkages and collaborations among stakeholders and government (Section 8(b)(h)).
  • The Plan must include investment programs to incubate, encourage, and promote original creative content and talent (Section 8(b)(i)).
  • The Plan must include strategies to improve capacity and access to national and international markets (Section 8(b)(j)).
  • The Plan must include programs promoting hiring, employment, occupational safety, and welfare of workers in coordination with DOLE and creative workers associations (Section 8(b)(k)).
  • The Plan must include policies ensuring access of workers to sustainable and dignified work and protection of rights and welfare (Section 8(b)(l)).
  • The Plan must include programs promoting a stronger intellectual property ecosystem among and across creative industries (Section 8(b)(m)).
  • The Plan must include a comprehensive digital acceleration plan for Philippine creative industries (Section 8(b)(n)).
  • The Plan must include strategies toward creating a creative cities network for mutual support and exchange among LGUs (Section 8(b)(o)).
  • The Plan must include programs establishing a coordinative relationship with the leading national agency on disaster risk management and resilience to cover creative economy players across disaster management (Section 8(b)(p)).
  • The Plan must include guidelines and strategies for proper management of the Creative Industry Development Fund under Section 19 (Section 8(b)(q)).

Council secretariat and Executive Director roles

  • The Act establishes a Secretariat within the DTI, headed by an Executive Director IV (Salary Grade 29) appointed by the President (Section 9).
  • The Executive Director IV must be at least thirty (30) years old at appointment, of good moral character, a person of proven integrity, a college degree holder in a related field, and must have proven administrative proficiency, independence, experience, knowledge, and commitment.
  • The Executive Director IV must have served in a leadership position for at least ten (10) years in at least one (1) creative industry domain prior to appointment (Section 9).
  • The Secretariat is assisted by two (2) Deputy Executive Directors IV (Salary Grade 28) and an Administrative Staff consisting of at least one officer for each listed position: Policy Development Manager, Research and Analytics Manager, International Trade Development Manager, Domestic Creative Industries Development Manager, Project Manager: Creative Zones, Project Manager: Digital Shared Services, Project Manager: Training and Development, Intellectual Property and Legal Specialist, Financial Services, and Administrative Secretariat (all with specified salary grades) (Section 9).
  • Deputy Executive Directors must have the same qualifications for appointment as the Executive Director (Section 9).
  • The President appoints the Executive Director and Deputy Executive Directors from a list of at least five (5) nominees submitted by the Council (Section 9).
  • The Executive Director and Deputy Executive Directors serve a term of three (3) years with reappointment for another term; replacements after death, resignation, or removal serve only the unexpired portion (Section 9).
  • Within 120 days after effectivity, the Council determines the Secretariat’s organizational structure, staffing pattern, and compensation system and submits them to the DBM for approval (Section 9).
  • Secretariat officers and employees are appointed in accordance with civil service laws, rules, and regulations (Section 9).
  • The Executive Director must direct and manage Secretariat affairs per Council policies, establish internal organization, submit an annual and supplemental budget to the Council for approval, maintain databases with PSA and relevant agencies, maintain databases of accredited business support organizations and creative workers associations in coordination with LCAC pursuant to Section 22, conduct nationwide information dissemination, submit an annual report to the Council within thirty (30) days after the close of each fiscal year, submit Secretariat policies/rules/systems essential to operation for Council approval, and perform other duties assigned by the Council (Section 10).

Support programs, incentives, and special mechanisms

  • Entities in the creative industries may avail of shared service facilities from the DTI and infrastructure support programs under Republic Act No. 11293 (“Philippine Innovation Act”) (Section 11).
  • The Council must create subsidized rental schemes for studios and venues and provide co-working spaces and similar facilities and hardware for multiple creative industry stakeholders (Section 11).
  • Preference must be given to MSMEs in providing such support (Section 11).
  • The DTI must promulgate guidelines on availing shared facilities, including selecting beneficiaries, in coordination with the Council (Section 11).
  • Entities may avail of the DOST research and development support program providing financial support to research projects addressing industry needs through science and technology interventions, accelerating transfer and commercialization, and strengthening research capability (Section 12).
  • Research grants under DOST programs may be availed by government research and academic institutions as well as local companies and startups, subject to DOST evaluation and approval (Section 12).
  • Creative industry entities must be granted access to digital services and digital training platforms (Section 13).
  • Technical and financial assistance must be provided to Filipino entities creating digital content distribution platforms and other digital innovations benefiting creative industries (Section 13).
  • The DICT and the National Telecommunications Commission must provide dedicated high-speed infrastructure and bandwidth to ensure efficient delivery to creative industry enterprises (Section 13).
  • The DICT must promulgate guidelines implementing the digitalization program, including beneficiary selection, in coordination with the Council (Section 13).
  • A Creative Voucher System must be established to systematize granting support, aid, and incentives to creative industry entities, with preference toward MSMEs (Section 14).
  • Creative vouchers must be issued to stakeholders from business support organizations and creative workers associations, entitling them to receive support, aid, and incentives from various government agencies (Section 14).
  • The Council must promulgate guidelines implementing the Creative Voucher System (Section 14).
  • The Council must create a Creative Industries Investment Priority Plan (CIIPP) listing specific activities in creative industries qualifying for incentives, supported by studies of existing and prospective demand and relevant regional economic and technical factors and facilities (Section 15).
  • Enterprises engaged in CIIPP activities may be entitled to applicable fiscal incentives under Republic Act No. 11534 (“Corporate Recovery and Tax Incentives for Enterprises Act”) and non-fiscal support in the Strategic Investment Priority Plan (SIPP), subject to requirements and limitations set by the BOI in coordination with the Fiscal Incentives Review Board (Section 15).
  • Government-owned, -controlled, or -supported financial institutions must give priority to creative industries in providing credit assistance and guarantee schemes, subject to the rules of the concerned financial institutions (Section 16).
  • The required Creative Educational Plan and related policies, programs, and strategies must be established by:
    • DepEd and CHED: support and develop relevant programs and provide scholarships (basic education and college/post-graduate respectively) for students enrolled in creative-industry-related programs/courses, with priority to underprivileged students; CHED must identify Creative Centers of Excellence and establish criteria for identification with private sector and academe partnership (Section 17(a)).
    • TESDA: provide talent, skills, and technical-vocational training through scholarship programs in courses related to creative industries for entrepreneurs, workers, trainees, and stakeholders; and provide continuous education, talent and skills training, and capacity-building for other stakeholders (Section 17(b)).
    • Non-formal learning modalities by government and private sector must be entitled to technical and financial assistance from the Council, including Filipino-made online learning platforms, workshops and other capacity-building programs (physical or online), creative arts residences, and schools of living traditions (Section 17(c)).
  • DepEd, CHED, and TESDA must extend incentives to academic institutions providing funds and/or grants for research of their students and faculty on matters relating to development and promotion of Philippine creative industries (Section 17).
  • The Council and Secretariat must coordinate with the PSA and other relevant NGAs to set up a satellite account for creative industries, including data collection and management, to maintain accuracy in national income accounting (Section 18).
  • The Secretariat must develop and maintain a website as the primary source of information on statistics, events, government programs, and benefits for Philippine creative industries, integrating existing websites and content implemented by government for all creative industry domains (Section 18).

Creative Industry Development Fund and funding rules

  • The Act establishes a Special Account in the General Fund with the National Treasury called the Creative Industry Development Fund (“Fund”) (Section 19).
  • The Fund is created for research and development, trade promotion, human resource development in the creative industry, and welfare of artists, workers, and other stakeholders through business support organizations and creative workers associations (Section 19).
  • The Fund must be capitalized and administered by the Council in accordance with existing government budgeting, accounting, and auditing rules and regulations (Section 19).
  • The Fund may be sourced from loans, contributions, grants, bequests, gifts, and donations from local or foreign sources (Section 19).
  • Acceptance of grants, bequests, contributions, and donations from foreign governments requires approval of the President upon recommendation of the DFA Secretary (Section 19).
  • Grants, bequests, contributions, and donations from foreign governments are deductible for income tax purposes under the National Internal Revenue Code, as amended (Section 19).
  • Expenditure programs for projects and activities funded by the Fund must be itemized project-to-project and submitted annually to Congress (Section 19).
  • In identifying and prioritizing programs, projects, and activities, the Council must conduct prior consultation with representatives of the creative industry (Section 19).

Public-private partnerships and creative cities network

  • The Council must promote public-private partnerships for infrastructure development for creative industries, subject to Republic Act No. 6957 as amended (“Philippine Build-Operate-Transfer (BOT) Law”) (Section 20).
  • The Act establishes the Philippine Creative Cities Network (PCCN) as a permanent program of the Council (Section 21).
  • The PCCN serves as an avenue of mutual support, exchange of ideas, and collaboration among the country’s cities (Section 21).
  • The PCCN’s objectives include:
    • Incubating cities exploring their creative resources and opportunities for growth (Section 21(a)).
    • Accelerating cities emerging as creative cities towards UNESCO accreditation as part of the UNESCO Creative Cities Network (Section 21(b)).
  • PCCN implementation is coordinated with DFA, UNACOM, League of Cities of the Philippines, DTI, and DILG (Section 21).

Local Culture and Arts Councils; Negosyo Centers

  • All LGUs, in coordination with the Council and the DILG, must establish a Local Culture and Art Council (LCAC) (Section 22).
  • LCAC functions and powers include supporting the Council in all functions under Section 7 (Section 22(a)).
  • LCAC must report to the Council the development and status of program implementation at the local level (Section 22(b)).
  • LCAC must maintain a database of business support organizations and creative workers associations within its territorial jurisdiction and transmit such data to the Council (Section 22(c)).
  • LCAC must formulate, plan, coordinate, implement, and assess policies, programs, activities, and projects promoting and developing the locality’s creative industries in coordination with the Council (Section 22(d)).
  • LCAC must perform other duties and functions the Council directs (Section 22(e)).
  • Negosyo Centers in LGUs established under Republic Act No. 10644 (“Go Negosyo Act”) must extend services as a one-stop shop for creative industry MSMEs or entrepreneurs to avail applicable government services, including intellectual property registration, product and business registration, loans, grants, and benefits programs (Section 23).
  • All Negosyo Centers must provide a special lane for creative industry MSMEs or entrepreneurs (Section 23).
  • Negosyo Centers must provide electronic access and registration for creative industry MSMEs or entrepreneurs in accordance with Republic Act No. 9485, as amended by Republic Act No. 11032 (“Ease of Doing Business and Efficient Government Service Delivery Act of 2018”) (Section 23).

Creative Industries Month; annual reports; review

  • The Act establishes “Philippine Creative Industries Month” to be celebrated for the whole month of September every year (Section 24).
  • The Secretariat must ensure successful annual celebration throughout the country, in partnership with the private sector and the academe; the mechanism, programs, and activities must be laid down in the IRR of the Act (Section 24).
  • All departments, agencies, and instrumentalities of the national government (including GOCCs), LGUs, and the private sector must provide full support and active participation in the Month’s programs and activities (Section 24).
  • The Council must submit to the President and both Houses of Congress, not later than April 30 of every year following effectivity, a detailed annual report on implementation of the Act including recommendations for legislation if necessary (Section 25).
  • Congress must review the Act at least once every five (5) years or as often as deemed necessary to enact reforms responding to emerging needs and developments, including possible review of governance structures (Section 26).

Implementing rules, appropriations, separability, repeal

  • The amount necessary for immediate implementation must be included in the annual General Appropriations Act (Section 27).
  • The DTI Secretary must promulgate the necessary implementing rules and regulations (IRR) within 60 days from effectivity, after consultation with other concerned government agencies, industry representatives, and NGOs (Section 28).
  • Separability: if any provision is held invalid or unconstitutional, the remaining provisions remain in full force and effect (Section 29).
  • Repealing: all inconsistent laws, presidential decrees, executive orders, rules and regulations, and other issuances (or parts thereof) are repealed, amended, or modified accordingly (Section 30).

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