IPOPHL MEMORANDUM CIRCULAR NO.

______
Series of 2021

SUBJECT: IMPLEMENTING RULES AND REGULATIONS ON SOUND

RECORDING PRODUCERS’ RIGHTS

Whereas, Section 13, Article XIV of the Philippine Constitution provides that:

The State shall protect and secure the exclusive rights of

scientists, inventors, artists, and other gifted citizens to their
intellectual property and creations, particularly when beneficial to
the people, for such period as may be provided by law.

Whereas, the Intellectual Property Office of the Philippines (IPOPHL) is

mandated to administer and implement the state policies declared in Republic Act
No. 8293, the Intellectual Property Code of the Philippines (IP Code), as amended
by Republic Act No. 10372;

Whereas, Part IV, Chapter XIII of the IP Code, as amended, deals with the
rights of producers of sound recordings;

Whereas, the Philippines is a contracting party to the World Intellectual

Property Organization Performances and Phonograms Treaty (WPPT), having
acceded to the same on 14 July 2002;

Whereas, there is a need to establish regulations that would properly and

effectively implement the provisions of the IP Code and WPPT relative to the rights
of producers of sound recordings, taking into consideration the various economic,
social, cultural and technological developments as well as the profound impact of the
development and convergence of information and communication technologies on
the production and use of sound recordings, while maintaining the balance between
the rights of performers and producers of sound recordings and the larger public
interest;

NOW, THEREFORE, pursuant to the authority of the Director General under

Section 7.1(a) of the IP Code that grants the power to manage and direct all
functions and activities of the IPOPHL including the promulgation of rules and
guidelines to implement the objectives, policies, plans, programs, and projects of the
Office, the following Rules are hereby adopted and promulgated, as follows:

RULE I
GENERAL PROVISIONS

Section 1. Short Title. – These Regulations shall be known as the "Regulations

on Sound Recording Producers’ Rights” (SRPR).

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Section 2. Coverage. – These Regulations shall apply to the following:

2.1 Sound recordings the producers of which are nationals of the Philippines,
or in the case of a juridical entity, incorporated under Philippine laws;

2.2 Sound recordings the producers of which are nationals of countries

signatory to the WPPT;

2.3 Sound recordings that were first published in the Philippines; and

2.4 Sound recordings that were first published in another country signatory to
the WPPT.

Section 3. Exclusions. – These Regulations shall not apply to:

3.1 Short sound recordings;

3.2 Sound recordings captured by purely mechanical means without

originality; and

3.3 Sound recordings that would otherwise qualify under these Regulations
were it not for the fact that they are made earlier than January 1, 1978.

Section 4. Definitions. –

4.1 “Broadcasting” - the transmission by wireless means for public reception of

sounds or of images or of images and sounds or of the representations
thereof; such transmission by satellite is also “broadcasting”; transmission
of encrypted signals is “broadcasting” where the means for decrypting are
provided to the public by the broadcasting organization or with its consent;

4.2 “Communication to the public of a sound recording” – the transmission to

the public by any medium, otherwise than by broadcasting, of the sounds
or the representations of sounds fixed in a sound recording, including
making the sounds or representation of sounds fixed in a sound recording
audible to the public;

4.3 “Exploiter” – the person or entity that broadcasts or otherwise

communicates to the public the audiovisual works or fixations, usually for a
fee and/or generates income therefrom. It does not refer to a mere end-
consumer.

4.4 “Fixation” – the embodiment of sounds, or of the representations thereof,

from which they can be perceived, reproduced, or communicated through
a device. Fixation means the finalization of the master tape (“bande-
mère”);

4.5 “Publication of a sound recording” – the offering of copies of the sound

recording to the public, with the consent of the right holder, and provided
that copies are offered to the public in reasonable quantity.

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 4.6 Short sound recording’ – any sound recording, as defined herein, that
does not exceed one (1) minute in its total running time;

4.7 Sound recording” – the fixation of the sounds of a performance or of other

sounds, or of a representation of sound, other than in the form of a fixation
incorporated in a cinematographic or other audiovisual work. Stated
otherwise, the term refers to any exclusively aural fixation of sounds of a
performance or of other sounds. It is used interchangeably with the term
“phonogram” throughout these Rules. The aforementioned definitions do
not suggest that rights in the sound recording are in any way affected
through their incorporation into a cinematographic or other audiovisual
work;

4.8 “Sound recording producer” – the person, or the legal entity, who or which
takes the initiative and has the responsibility for the first fixation of the
sounds of a performance or other sounds, or the representation of sounds;

RULE II
SOUND RECORDING PRODUCERS’ RIGHTS

Section 1. Moral Rights. – No moral right is accorded to sound recording or

phonogram producers.

Section 2. Economic Rights. – Producers of sound recordings shall enjoy the

following exclusive rights:

2.1. Right of Reproduction. – The right to authorize the direct or indirect

reproduction of their sound recordings, in any manner or form;

2.2. Right of Distribution. – The right to authorize the first public distribution of
the original and copies of their sound recordings through sale or other
forms of transferring ownership. The copies referred to in this section refer
to fixed copies that can be put into circulation as tangible objects;

2.3. Right of Rental. – The right to authorize the commercial rental to the public
of the original and copies of their sound recordings even after distribution
of them, by or pursuant to, authorization by the producer. The copies
referred to in this section refer to fixed copies that can be put into
circulation as tangible objects;

2.4. The Making Available Right. – The right to authorize the making available
to the public of their sound recordings in such a way that members of the
public may access the sound recording from a place and at a time
individually chosen or selected by them, as well as other transmissions of
a sound recording with like effect.

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Section 3. Single Equitable Remuneration (SER). – Single Equitable Remuneration
shall be paid by the exploiter to the performer or performers, and the producer of the
sound recording in the following instances:

3.1 If a sound recording published for commercial purposes is used directly or

indirectly for broadcasting or for other communication to the public, or is
publicly performed with the intention of making and enhancing profit; and

3.2 If a reproduction of such sound recording is used directly or indirectly for

broadcasting or for other communication to the public, or is publicly
performed with the intention of making and enhancing profit.

In the absence of any agreement between the performer or performers and the
producer of sound recording, they shall share equally in the SER.

RULE III
LIMITATIONS AND EXCEPTIONS

Section 1. The sound recording producers’ rights shall be subject to the limitations
and exceptions provided under Sections 184 and 185 of Chapter VIII of Republic Act
No. 8293, as amended.

RULE IV
MECHANICS ON THE
SINGLE EQUITABLE REMUNERATION (SER)

Section 1. Liability for Payment of the SER –

1.1 The payment of the SER shall be the obligation of the exploiter of the sound
recording.

1.2 The exploiter shall pay one single equitable remuneration per use of a
sound recording to performers and the sound record producers rather than
two amounts of money per use, directed to the performer and the sound
recording producer.

1.3 The exploiter may withhold payment from a person claiming the SER until
sufficient evidence of entitlement thereto is produced.

Section 2. Management. –

2.1 The SER shall apply to the direct or indirect use of the sound recording for
broadcast, communication to the public, or public performance.

2.2. The right to claim the SER is granted to both the performer and the sound
recording producer, and to be exercised by a duly accredited Collective

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 Management Organization (CMO) of performers or sound recording
producers, as detailed below.

2.2 To facilitate the payment of the exploiter’s SER obligation, and consistent
with Rule IV, Section 1.1, any of the options below may be observed or
practiced in the collection of SER, at the agreement of the parties:

a. Collection by the Performers’ CMO;

b. Collection by the Sound Recording Producers’ CMO;

c. Collection by a third party, as mutually agreed upon by the parties; or

d. Collection through a One Stop Shop (OSS) System, the structure and
mechanics of which shall be agreed upon by the parties, the operation of
which shall be audited by the Bureau of Copyright and Related Rights.

RULE V
TERM OF PROTECTION

Section 1. Term of Economic Rights. – The term of protection of sound recordings

shall be fifty (50) years from the end of the year in which the recording took place. A
reissue or republication of the original recording shall not operate to extend the term of
the protection.

Section 2. Calculation of Term. – The term of protection subsequent to its recording

shall run from the date of such performance or recording, but such terms shall always
be deemed to begin on the first day of January of the year following the event which
gave rise to them.

Section 3. In cases where authorization is needed from both the author of a work
embodied in a sound recording and a performer or producer owning rights in the
same, the need for the authorization of the author does not cease to exist because the
authorization of the performer or producer is also required.

RULE VI
MISCELLANEOUS PROVISIONS

Section 1. The enjoyment and exercise of sound recording producers’ rights shall
not be subject to any formality.

Section 2. In cases where authorization is needed from both the author of a work
embodied in a sound recording and the performer or producer owning rights in the
said sound recording, the need for the authorization of the author does not cease to
exist because the authorization of the performer or producer is also required.

Section 3. The Bureau of Copyright and Other Related Rights (BCRR) shall
continue to accept applications of sound recordings and shall review the procedures

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within six (6) months from the effectivity of these Rules, with the end view of
streamlining the process.

Section 4. Together with the Implementing Rules and Regulations on the Sound
Performers’ Rights (SPR), they shall be collectively known and referred to as
“Implementing Rules and Regulations on Sound Recording Rights.
RULE VII
FINAL PROVISIONS

Section 1. Construction in Favor of Sound Recording Producers. – These

Implementing Rules and Regulations shall be liberally construed to promote the
rights of sound record producers. Without prejudice to rights of other rights holders,
all doubts in the implementation and interpretation of these Rules shall be resolved
in favor of said beneficiary, consistent with the spirit and letter of the WPPT and the
IP Code.

Section 2. Information Dissemination. – The BCRR, with the assistance of

concerned government agencies and sound recording producers’ group, shall make
the BTAP and these Rules widely known, through active and appropriate means and
formats, to concerned stakeholders and to the general public.

Section 3. Separability Clause. – If any section or provision of these Rules shall

be held to be invalid, the remaining provisions shall remain in full force and effect as
completely as if the part held invalid has not been included therein.

Section 4. Effectivity. – These Rules shall take effect after fifteen (15) days from
publication in a newspaper of general circulation.

Section 5. Furnishing of Certified Copies. – Certified copies of this Memorandum

Circular shall be filed with the University of the Philippines Law Center, the
Department of Trade and Industry, the Senate of the Philippines, the House of
Representatives, the Supreme Court of the Philippines and the National Library.

Done this ___ day of ______ ____, at Taguig City, Philippines.

ROWEL S. BARBA
Director General