1

PHILIPPINE ASSOCIATION OF THE RECORDING INDUSTRY

(DATE OF ISSUE: April 29, 2009)

TABLE OF CONTENTS

  1. Obligations of Producers ………………………………… 2
  2. OMB Requirements ………………………………………... 3
  3. Mechanical Licenses……………………………………….. 4
  4. Cover Versions ………………………………………..……. 5

Annex “A” ………………………………………………………….. 8

  1. OBLIGATIONS OF PRODUCERS

Any individual or entity intending to produce and commercially exploit a recording (hereinafter referred to as “Producer”) on CD or other optical media format must comply with the following:

  1. Prior to production/replication:
  1. For original recordings, the Producer should obtain a written mechanical license from the composer/s or publisher/s of the musical composition to be recorded and sold. Note that in the case of adaptations and translations, the license should specifically state the right to make an adaptation or translation. For videoke or other audiovisual productions, a synchronization right must be specifically granted by the composer/s or publisher/s.
  1. Producer should ensure that it is authorized to use the name and likeness (or image) of the artist, and the artist is not prohibited by any past or present contractual obligation from recording the musical composition with it.
  1. For cover versions and sound-alike recording, the Producer should comply with the rules on cover versions attached hereto.
  1. For recordings owned by other record companies, here or abroad, the Producer should obtain a written license from the producer that owns the recording giving the applicant the authority to compile and/or distribute said sound recordings within the Philippine territory.
  1. For karaoke productions, video footages used in the product must be owned by the producer or otherwise authorized to be used by the producer.
  1. After production:
  1. Producer should properly acknowledge all composers, publishers, and the label or owner of each track included in the album.
  1. Album design should comply with the rules on cover versions and have proper copyright notices. Producer must own or be authorized to use the photos, images and artwork it intends to use on the album cover. Producer may not used copyrighted works without the permission of the owner thereof.
  1. All trademarks appearing on the label or disc must be authorized for use on the products.
  1. Prior to replication, Producer should obtain a Commercial Replication Permit for each title to be reproduced in commercial quantities, as well as the prerequisite license from OMB to engage in an optical media business. A Certificate of Compliance is required by OMB to be submitted together with all requirements.
  1. Subject to individual agreements, royalties should be properly accounted for and paid to the composers and artists concerned.
  1. OMB REQUIREMENTS

a. LICENSE -- An applicant is required to obtain a License to Engage in an Optical Media-related Business from the Optical Media Board in order to engage in the following activities:

  1. Producer of music content distributed on optical media
  1. Distributor of optical media (physical products), whether of local or international origin
  1. Local licensee of content to be distributed on optical media
  1. Importer or Exporter of optical media
  1. Replicator or Duplicator of optical media
  1. Importer or Exporter /Dealer of optical media manufacturing equipment and manufacturing materials.
  1. PERMIT – A permit is required for each of the following regulated activities:
  1. Commercial replication of a copyrighted work on optical media
  1. Importation of optical media
  1. Exportation of optical media
  1. Acquisition of machines and materials relating to the production of optical media, including CDRs

For more information, please contact THE OPTICAL MEDIA BOARD LICENSING AND REGISTRATION DIVISION at Tel. No. (02) 374-1393 or visit the OMB website:

  1. MECHANICAL LICENSES

A Producer is required to seek written permission from the copyright owner, assignee, administrator or publisher of a musical composition:

  1. To record a musical composition for the first time. In this case the following shall apply:

PROCEDURE FOR CLAIMING OF SONGS

  1. A Producer shall notify the Publisher concerned of its intention to record a composition, indicating therein the format (audio or video/videoke) SRP, release date, artist, and other relevant album information, prior to the recording thereof.
  1. The Publisher shall claim the composition/s under their respective control, or acknowledge that none of the songs are under its control, within fifteen (15) days from receipt of such notification.
  1. SECOND NOTICE. Should not all compositions have been claimed after the lapse of fifteen (15) days, the Producer shall issue a “NOTICE OF UNCLAIMED WORKS” and circulate the same to all Publishers. Should the composition/s still be unclaimed after the lapse of another fifteen (15) days from the issuance of such notice, the Producer shall inform PARI thereof in writing. The same shall constitute proof of the due diligence of the Producer should the Producer decide to go ahead and record the composition. However, Publishers who are not informed by the Producer are not bound thereby.
  1. Unless otherwise agreed upon, the LABEL shall not release the track without the written clearance and/or conformity of the PUBLISHER and full payment of the mechanical license fee.
  1. To recompile an existing recording. In this case, the following shall apply:
  1. Unless otherwise stated in the mechanical license agreement, the Producer shall obtain written permission from the respective publishers to recompile a recording, prior to the release of a compilation, indicating the following information:

- Title of Album

-Release Date

-P.P.D./ Wholesale Price

-Total Number of Songs in the Album

-Release territories

b. The Label shall render a separate royalty report on each recompilation.

  1. COVER VERSIONS AND COMPILATIONS

In the interest of protecting the public from misleading or confusing products, a Producer should comply with the following guidelines on cover versions and compilations:

  1. Types of cover versions

a. Revivals -- A new arrangement or version of a famous song recorded by a known artist or a new artist who will be promoted through radio, print, television, billboards, etc., and included in an album for which, in general, there will be extensive promotion of a single.

b. Sound-alike – A recording by an unknown and/or unnamed artist, intended to be passed off as the original recording or ride on the promotion of a recording being promoted on radio or other media.

c. Videoke – An instrumental or multiplex recording, which plays in synchronization with video or images and the lyrics of the song, intended for personal and home entertainment, which, in general, uses a specific arrangement of a song made famous by a known artist.

d. Compilation -- A vocal and/or instrumental collection of songs made famous by a specific known artist, but which are not the original recordings of such artist.

For the purposes of these guidelines, the terms “original artist” shall refer to the artist whose version or name is being used in the cover version, and “original recording,” shall refer to the specific version being used in the cover version.

Imported finished products shall not be covered by these guidelines, provided that the producer releasing the cover version provides proof thereof (i.e., license contract, bills of lading or airway bill, and import clearance from OMB).

Recordings licensed by a foreign entity for local reproduction, regardless of where replicated, shall not be covered by these guidelines, provided that the licensor has specifically authorized and warranted the use of the names, images, or logos of the original artists. These guidelines shall apply should the title of the licensed recording be different from that authorized by the licensor, or should no specific title be authorized in the license agreement.

2. Album Covers

  1. Use of original artists’ name-- The name of an original artist should not be used as Title of any cover version except as follows:
  1. The producer releasing the cover version is specifically authorized to use the names and images of the original artist by the artist, the producer which released the original version, or by any other person or entity authorized to grant such right;
  1. For sound-alike versions, the words “COVER VERSIONS” or “AS PERFORMED BY” or other words of similar import, in bold letters at least ¼ inch in height, are printed on the front cover of the album; (see Annex A, Figure 1)
  1. For videoke versions, the words “AS POPULARIZED BY” or other words of similar import, in bold letters at least ¼ inch in height, are printed on the front cover of the album; (see Annex A, Figure 2)
  1. In the case of Pars. 2 and 3, the name of the artist on both the front or back covers shall not be more than ½ inch in height.
  1. For compilations, the words “COVER VERSIONS,” “VARIOUS ARTISTS,” or other words of similar import, shall be printed on the front cover in bold letters at least ¼ inch in size. The individual names of the artists whose versions are compiled must appear beside the song title at the back cover and the inside labels. (see Annex A, Figure 3)
  1. In the case of revivals, including tribute albums, it shall be sufficient that the title of the album shall clearly inform the consumer of the contents of the album and shall not be misleading. (see Annex A, Figure 4)
  1. Use of original artists’ images, trademarks and logo/s -- The images, trademarks and logo/s of an original artist may NOT be used in any cover version except with written authority from the artist, or the producer authorized to allow such use.
  1. Use of existing series titles – Producers should not use titles used to identify products with a common theme, such as, for example, “Radio’s Best” series or “Numero Uno” series, that are already being used on products existing in the market,
  1. Additional requirements for videoke -- The word “karaoke,” “video karaoke,” or “videoke” must be clearly indicated on the front cover of the album. The format (VCD or DVD) must also be clearly indicated thereon. (see Annex A, Figure 2)
  1. Names of Cover Version Performers. – To protect the public from being misled through the use of confusingly similar artists’ names, these rules shall apply to cover versions, except revivals:
  1. When the original artist’s name consist of only one word (e.g., Sting, Beatles), the cover version performer’s name shall not be the same nor sound the same, even if the spelling is changed (e.g. Isting, Beetles), or be made to differ by adding or subtracting one or more letters. (e.g. Stings, Sbeatles)
  2. When the original artist’s name consists of two or more main words, no cover version performer’s name may contain one, two or more main words that are similar or sound-alike as the original, whether in the same chronological order or inverted. (e.g. Lipps Inc. to Hipps Inc.; Rolling Stone to Stones)
  1. No cover version performer’s name should be similar in spelling or in sound to any popular genuine recording artist, even if the songs are different. (e.g. Ray Coniff to Ray Connell)
  1. The above rules apply when there is no agreement between the producer and the owners, licensees or assignees of the recordings, images, trademarks, and record companies who have exclusive agreements with artists.

Approved on April 29, 2009.