Title
Regulation of Storage Device Commercial Activities
Law
Memorandum Circular No. 2018-002
Decision Date
Apr 5, 2018
Entities involved in the manufacturing, importation, exportation, distribution, sale, and rental of optical and magnetic storage devices must register and obtain licenses from the Optical Media Board to combat piracy, with strict penalties for non-compliance.
A

Scope and Purpose of Regulation

  • Regulation covers manufacturing, importation, exportation, distribution, sale, rental, and other commercial activities involving STORAGE DEVICES.
  • Aim: To combat piracy by controlling these devices nationwide.

Registration Requirement

  • Entities (establishments, institutions, sole proprietorships, individuals) engaged in commercial activities involving STORAGE DEVICES must register and secure licenses with the Optical Media Board (OMB) via the Registration and Licensing Division (RLD).

Coverage of Registration

  • Applies to all entities involved in the commercial handling of STORAGE DEVICES.
  • Covers manufacturing, importation, exportation, distribution, sale, rental, and related commercial activities.

Definition of Commercial Purpose

  • Commercial purpose: Activities involving manufacturing, importation, exportation, distribution, sale, rental of STORAGE DEVICES with intent to profit, consistent with Section 13(a), RA 9239.

Reportorial Requirements

  • Registered entities must keep true and complete records of all business transactions.
  • Records shall be available for inspection by OMB personnel on request.
  • Failure to maintain or provide records results in penalties.

Penalties for Non-Compliance

  • Failure to comply with licensing requirements (Section 1):
    • Suspension of operations (1-3 months)
    • Confiscation of STORAGE DEVICES
    • Fine between Php 50,000 to Php 100,000
  • Failure to comply with reportorial requirements (Section 4):
    • Suspension of operations (3-6 months)
    • Fine between Php 100,000 to Php 500,000
  • Permits/licenses issued by other government entities without proper OMB license will be automatically canceled.

Applicability of Existing Laws and Regulations

  • Provisions of RA 9239 (Optical Media Act of 2003), IRR, Memorandum Circulars, and OMB fee schedules apply mutatis mutandis to STORAGE DEVICES.

Registration and Licensing by Other Government Agencies

  • OMB licenses operate independently but do not exempt entities from obtaining other necessary government licenses or permits.

Transitory and Repeal Clauses

  • Circular applies prospectively, not affecting pending OMB applications.
  • Repeals or modifies inconsistent prior issuances.

Severability Clause

  • Invalid or unconstitutional provisions will not affect the validity of remaining provisions.

Effectivity

  • Circular takes effect 15 days after publication.

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