Title II – LICENSING AND REGULATION
Rule 1 – Registration
Section 1. Registration. – Any person, establishment or entity shall, prior to engaging in one or more of the businesses or activities enumerated hereunder, register with the OMB:
(a) Importation, exportation, acquisition, sale or distribution of optical media;
(b) Importation, exportation, acquisition, sale or distribution of manufacturing equipment, parts and accessories and manufacturing materials used or intended for use in the mastering, manufacture or replication of optical media;
(c) Possession or operation of manufacturing equipment, parts and accessories;
(d) Possession, acquisition, sale or use of manufacturing materials for the mastering, manufacture or replication of optical media;
(e) The mastering, manufacture, replication, importation or exportation of optical media; and
(f) Offering to the public the use of optical disc writers and re-writers.
Section 2. Registration Fee. – Any person, establishment or entity applying for registration shall fill up the prescribed form and pay the corresponding registration fee which shall be fixed by the OMB.
Section 3. Effectivity and Lapse of Registration. – The registration shall be valid and effective for as long as the registrant shall apply for and continue to renew his license and shall lapse after one year from his failure to renew the same.
Rule 2 – Licensing
Section 1. Licensing. – Apart from the registration with the OMB, as required in the preceding Rule, any person, establishment or entity shall, prior to engaging in one or more of the businesses or activities enumerated in the preceding Rule, secure the appropriate commercial license or licenses from the OMB.
Section 2. Licensing Fee. – The OMB shall issue commercial license or licenses to qualified applicants upon payment of a fee as fixed by the OMB.
Section 3. Surcharges and Penalties. – Surcharges and penalties, as fixed by the OMB, shall be imposed for late renewal of a commercial license.
Section 4. Conditions Precedent. –
(a) The licenses issued by the OMB are conditions precedent for securing the necessary business permits, licenses or registration from the appropriate authorities,
(b) The licenses issued by the OMB shall be a necessary condition for the release of any optical media, manufacturing equipment, parts and accessories, and materials intended for use in mastering and/or manufacturing optical media, from customs or economic zones exercising independent customs laws.
Section 5. Form and Term of Commercial License. – Every license shall be in a form prescribed by the OMB and shall be valid for a period of not more than three (3) years, subject to such conditions as the OMB may impose.
Section 6. Amendment of Commercial License. – Upon meritorious grounds, the OMB may amend a license upon application made by the license holder in accordance with the Act or these Rules.
Section 7. General Terms and Conditions of a Commercial License. – Every license issued by the OMB shall, where applicable, be subject to the following terms and conditions:
a) The license holder undertakes that he shall comply with all requirements imposed by the OMB pursuant to the Act and these Rules;
b) The license holder undertakes that he shall keep and maintain for a period of at least five (5) years true and complete records of all activities related to the conduct of its business and produce such records and samples of media from each mastering, manufacturing or replicating, as well as duplicating line, as required by the OMB;
c) The license holder undertakes that he shall voluntarily allow inspection of his business premises at any time, with or without prior notice;
d) The license holder represents that he or, in the case of juridical persons, any of its officers, directors, managers, shareholders, or partners, has not been convicted by final judgment of any offense punishable under the Act, these Rules or any law relating to the protection of intellectual property rights;
e) The license holder represents that the application does not involve a place, location or premises where an offense punishable under the Act, these Rules or under any law relating to the protection of intellectual property rights has been committed: Provided, That the offenders have been finally convicted of such offense;
f) The license holder represents that he has not furnished the OMB with any false or misleading information in connection with any application for or renewal of a license.
g) The license holder undertakes that he shall not engage in the mastering, manufacture, replication or duplication, sale or distribution of any optical media containing intellectual property, except with authority or consent of the owner thereof, or his duly authorized representative;
h) Any violation of any of these General Terms and Conditions shall be a ground for suspension and/or cancellation of the license, and imposition of fines and other penalties, as may be determined by the OMB.
Rule 3 – Grounds for Non-issuance or Non-renewal of Commercial License
Section 1. Grounds for Non-issuance or Non-renewal of Commercial License. – The OMB may refuse to grant a license, or to renew a license, upon any of the following grounds:
(a) The applicant has failed to comply with any requirement imposed by the OMB pursuant to the Act and these Rules;
(b) The applicant or, in the case of juridical persons, any of its officers, directors, managers, shareholders, or partners, is convicted by final judgment of an offense punishable under the Act or any law relating to the protection of intellectual property rights;
(c) The application involves a place, location or premises where an offense punishable under the Act or under any law relating to the protection of intellectual property rights has been committed: Provided, That the offenders have finally been convicted of such offense;
(d) The applicant has furnished the OMB with any false or misleading information in connection with any application for or renewal of a license; or
(e) The applicant has been previously issued a license that has been cancelled for cause within the preceding five (5) years from the date of the application.
Section 2. Period to Decide on Applications. – The OMB shall decide whether or not to grant or renew a license within fifteen (15) working days from the filing of the application.
Rule 4 – Grounds for Suspension or Cancellation of Commercial License
Section 1. Grounds for Suspension or Cancellation of Commercial License. – The OMB may, motu proprio or upon motion of any interested party, after notice and hearing, suspend or cancel a license on any of the following grounds:
(a) When the license holder has ceased to engage in the activities authorized under the license or in the place, location or premises indicated in the license;
(b) When the license holder has been convicted of an offense under this Act or under any other law relating to the protection of intellectual property rights;
(c) When the license holder is in breach of, or is unable to comply with any of the conditions prescribed in the license;
d) When any of the grounds enumerated under Section 1, Rule 3, Title II is present.
Section 2. Voluntary Suspension or Cancellation of Commercial License. – The OMB may, after notice and hearing, suspend or cancel a license when requested by the license holder;
Rule 5 – Provisions Common to Licensing and Registration
Section 1. Separate Registration and Licensing. – Those engaged or intending to engage in more than one of the activities enumerated in the preceding sections and/or conduct or intend to conduct business in more than one location shall separately register with and secure the license from the OMB for every business activity at each place of business.
Section 2. Conduct of Business in Different Locations. – No business activity registered with and licensed by the OMB for a specific place of business shall be conducted in any place and/or location other than that indicated in the license, without the prior written approval of the OMB.
Section 3. Display of License. – The registration and license issued by the OMB shall be prominently and conspicuously displayed at the designated place of business.
Section 4. Cancellation of Permits from Other Agencies. – Failure to register and obtain a license from the OMB shall automatically cancel any permit, license or registration issued by any national or local government unit, agency or office.
Section 5. Submission of Information. – To determine the qualifications and fitness of applicants for registration and/or license, OMB shall require the submission of such information, as the OMB may require.
Section 6. New or Change in Information. – The license holder shall, within fifteen (15) working days, inform the OMB in writing of any new information or change in the previously submitted information as required in the preceding section.
Rule 6 – Inspections
Section 1. Inspections. – The OMB shall, on the strength of Inspection Orders duly signed by the Chairman or his duly authorized representative, conduct inspections of commercial or business establishments or entities including those within the economic zones, engaged in the activities enumerated in Section 1, Rule 1, Title II of these Rules, to determine and enforce compliance therewith.
Section 2. Conduct of Inspections. – As and when warranted, said inspections shall be conducted by organic or deputized agents of the OMB or in coordination with other competent agencies of the government, at any time, with or without prior notice to the establishment or entity concerned.
Section 3. Employment of Reasonable Force during Inspections. – The OMB may employ reasonable force during inspections in the event that the responsible person or persons of such establishment or entity sought to be inspected evades, obstructs, or refuses such inspection. For this purpose, the agents of the OMB shall be considered agents of persons in authority;
Rule 7 – Preventive Custody
Section 1. Preventive Custody. – When there is reasonable ground to believe that a violation of the Act or of these Rules has been committed, is being committed or is about to be committed, the OMB shall take into preventive custody all optical media and/or material or equipment, including parts, accessories and paraphernalia subject of such violation for further investigation.
Section 2. Issuance of Receipt. – The OMB personnel or agent taking preventive custody of the properties referred to in the preceding section shall issue a detailed receipt to the owner or holder of said properties.
Section 3. Return of Property. – Properties taken into preventive custody shall be returned to their owner or holder within thirty (30) days from the date of the taking into preventive custody unless appropriate criminal or administrative complaint has been instituted against the persons or entities which appear to be liable for the offense or violation of the Act or these Rules.
Section 4. Due Process. – In appropriate proceedings, the owner or holder of the subject properties shall be afforded ample opportunity to prove to the OMB that said properties are not subject of any offense or violation of the Act or these Rules.
Rule 8 – Reportorial Requirements
Section 1. Keeping of Records. – All persons, establishments and entities engaged in the activities enumerated in Section 1, Rule 1, Title II of these Rules shall keep and maintain for a period of five (5) years true and complete records of all activities related to the conduct of business.
Section 2. Production or Submission of Records. – The OMB may, at any time, require, said persons, establishments and entities to cause the production and submission of such records to the OMB.
Section 3. Submission of Samples. – The OMB may, at any time, also require said persons, establishments and entities to submit samples of optical media and other products for forensic examination and investigation.
