December 2015 ANNUAL NEWSLETTER Gathering of the Pillars of the Philippine Music Industry

Clockwise from Top Left: Mr. Alvin de Vera, Mr. Rudy Tee, Mr. Johnny Sy, Mr. Ricky Ilacad, Mr. Ramon Chuaying, Atty. Marivic Benedicto, Mr. Rene Salta, Atty. Jan Porter, Mr. Jesmon Chua, Ms. Crys Yayen, Ms. Cely Cruz, Mr. Danny Olivares, Mr. Buddy de Vera, Mr. Fred Tayengco, Amb. James Dy, Mr. Vic del Rosario, & Mr. Tony Ocampo. • PARI Officers Page 2 • PARI/MCAP meeting w/ OMB Page 2 June 17, 2015, Choi Garden, Greenhills, San Juan City. th • 28 Page 3 The PARI Board of Directors hosted a gathering to bring together the • Spotify Workshop for Artists Page 3 "Pillars of the Philippine Music Industry".

• Status of the Music Industry Page 4 The following key personalities in the Music Industry attended the event:

• PH out of USTR Watch List again Page 5 Dr. James Dy (, Galaxy Records, Polyeast Records, Universal • OMB Board of Directors Page 5 Records), Mr. Vic del Rosario (Viva Records, Vicor Music), Mr. Buddy de • Soundsright Accredited Page 6 Vera (Alpha Music), Mr. Danny Olivares (former PARI President), Mr. Fred Tayengco (HIDCOR), Mr. Tony Ocampo (Viva Records), Mr. Ramon • OMB Chairman’s Resignation Page 7 Chuaying (), Mr. Johnny Sy (Praise, Inc.), Mr. Ricky Ilacad (MCA Music), Mr. Alvin de Vera (Alpha Music), Rudy Tee (former • New IPO Director General Page 7 ), Atty. Marivic Benedicto (ABS-CBN Films Productions), Mr. • Photos Page 8 Rene Salta (GMA Records), Mr. Jesmon Chua (Polyeast Records), & Atty. Jan Porter (Vicor Music)…. Cont. to Page 2

Gathering of the Pillars of the Philippine Music Industry (from page 01)

L-R: Mr. Vic del Rosario, Amb. James Dy, Mr. Buddy de Vera

L-R: Amb. James Dy, Mr. Fred Tayengco, Mr. Buddy de Vera, Mr. Vic del Rosario, Mr. Danny Olivares, & Mr. Johnny Sy

PARI / MCAP meeting with OMB L-R: Mr. Danny Olivares, Mr. Tony Ocampo, Mr. Fred Tayengco, Mr. Buddy de Vera, Mr. Ramon Chuaying, & Mr. Vic del Rosario PARI and MCAP (Music & Copyrights Administrators of the The gathering brought together the key personalities ) met with OMB Chairman Ronnie Ricketts to involved in setting the strong foundation of the music discuss the proposed Memorandum of Agreement between the industry in the Philippines even before the association associations and the agency. The PARI-OMB MOA will ensure was founded in 1972. It was also the chance to faster processing of the Commercial Replication Permit (CRP). rekindle ties and discuss how the music business is While the MCAP-OMB MOA will ensure that licensing of continuously evolving through the years. - AC karaoke machines and similar products will require a clearance from the publishers’ association. It was agreed that the agency will elevate the matter to the OMB Board of Directors for faster approval. And instead of a MOA, it was proposed that the agreement should be in the form of a Memorandum Circular.

Present were the following: OMB Chairman Ronnie Ricketts, OMB Chairman’s assistant Mr. Bong Simon, PARI Chairman Atty. Marivic Benedicto, MCAP Chairman Mr. Alvin de Vera, L-R: Mr. Buddy de Vera, Mr. Vic del Rosario, Mr. Danny Olivares, Mr. Johnny Sy, Mr. Alvin de Vera, Mr. Rudy Tee, Mr. Ricky Ilacad, Mr. Tony Ocampo, & Atty. PARI Office Manager Cely Cruz, and PARI Industry Dev’t. Marivic Benedicto Officer Alexei Camurungan. - AC 2

The 28th Awit Awards

The 28th Awit Awards will be on the 9th of December, 2015, 7PM at the Music Museum, Greenhills San Juan. The Awards night is presented by the Philippine Association of the Record Industry, Inc. (PARI) and will be produced by Laurel Media Co. under Mr. Richard and Roni Merk. The awards night will be under the direction of Mr. Bert de Leon. The screening and judging of entries were concluded earlier in August 2015 and were sponsored by STI Colleges and PricewaterhouseCoopers. - AC 28th Awit Awards Organizing Committee meeting with Laurel Media Co. at Dong Juan, Mother Ignacia St., . SCREENING / JUDGING for the 28th Awit Awards

The 28th Awit Awards screening and judging were held in Club Filipino, San Juan City under the strict supervision of the Awit Awards Organizing Committee, STI and PricewaterhouseCoopers.

SPOTIFY Workshop for Artists Spotify in cooperation with PARI conducted a workshop at Yardstick, City, last April 24, 2015. The workshop was all about how the artists and their managers/managing team could use Spotify to their advantage. It gave the artists better understanding of their listeners and how they could effectively grow and engage their fan base. L-R: Spotify’s Kossy Ng, PARI’s Atty. Marivic L-R: Spotify’s featured artists Marion Aunor & Shehyee with Atty. Marivic Benedicto Benedicto, PARI’s Ms. Cely Cruz, Spotify’s Chee Meng With over 75 million users and 1.7 billion and PARI’s Alexei Camurungan. hours of listening each month, Spotify has the largest listening audience in the world which could open up opportunities for the artists.

The event also featured the success stories of known artists around the world. The workshop also invited most streamed artists, Marion Aunor & Fliptop rap artist L-R: Ms. Moira Dela Torre , Ms. Elloise Mapalla, Ms. Doris Saturno, Ms. Elinor Castro, Ms. Guia Gil Ferrer, Shehyee. - AC Ms. Cely Cruz, and Ms. Grace Espenida-Lapuz Spotify Event at Yardstick, Makati 3

2014 was the year when Digital music sales has overtaken Physical format sales in the Philippines. During the year 2014, digital revenue increased 27% from the previous year. As you can see in the table below, Digital music consumption is steadily increasing through the years. This shows that the industry is still in continuing transition since consumers are still embracing the new digital music access models.

Digital music comes in the form of downloadable tracks/abums, ringback tones, true tones, and now streamed music from apps and music from ad-supported sites. The music industry’s digital revolution continues to advance as music consumers desire for music veers towards access rather than ownership. With advanced gadgets, mobile phones and faster internet speeds, access to music becomes easier and faster for the consumers.

In some countries, this phenomenon happened many years ago. It is only now that the Digital Music sales in the Philippines surpassed the Physical CD sales which means that this could be an indicator that music consumption in the Philippines is going digital. Leading telecom companies are now offering bundled music services to their customers. These partnerships between the telecom companies and record producers play a significant role in improving digital music consumption in the country.

Physical CD sales dropped a significant 21% during the year 2014. Although the drop is significant, physical CD sales still account for almost half of the total sales for that year (49%). We could say that there is still a Physical market for consumers who still believe in the traditional ownership model.

Interestingly after years of decreasing sales, the total sales of both Digital and Physical for Y2014 increased by 0.25%. - AC

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Philippines out of the USTR Piracy Watch List for the second year

For the second year since 2014, the Philippines remains out of the USTR Piracy Watch List. The Office of the US Trade Representative release on May 01, 2015 its annual review of the state of Intellectual Property Rights Protection and Enforcement of the trading partners of US.

A trading partner’s placement on the list means that there is a problem on how the country is enforcing and protecting Intellectual Property (OMB) Board of Directors Rights.

According to IPO Officer-in-charge Atty. Allan Gepty, the latest report Introducing the Optical Media Board (OMB) Board of Directors recognizes the country’s hardwork and sustained drive to improve the under the leadership of Chairman Ronnie Ricketts: protection and enforcement of IPR. It means that the national government is giving priority to IP as a tool for economic development. Intellectual Property Office of the Philippines Through this, we could expect more foreign investment, particularly IP 1) DIRECTOR ALLAN B. GEPTY intensive industries. Representative: Atty. Chester Cinco

This major development in the Philippines was a result of the hard work Department of Trade & Industry and coordination of the different government agencies, particularly 2) DIRECTOR GREGORY L. DOMINGO members of the National Committee on IPR, namely Optical Media Representative: Director Adrian Cristobal Board (OMB), Philippine National Police (PNP), National Bureau of Director Luis M. Catibayan Investigation (NBI), Department of Trade & Industries (DTI), Department of Justice (DOJ), Department of Interior and Local Government (DILG), Department of Finance National Telecommunications Commission (NTC), National Book 3) DIRECTOR CARLO A. CARAG Development Board, Food and Drug Administration (FDA), and the Office of the Special Envoy on Transnational Crime, and the private Department of Interior & Local Government sector/stakeholders. 4) DIRECTOR ROMEO P. BENITEZ

Before the removal on the Philippines from the list in 2014, the 5) DIRECTOR LUCIANO “LOU” M. VELOSO Philippines has remained in the watch list since 1994. 6) DIRECTOR ANTONIO “TONY” Y. REYES In this year’s report, trading partners on the Priority Watch List or those with the most significant concerns regarding insufficient IPR protection 7) CHAIRMAN RONALD “RONNIE” N. RICKETTS are Algeria, Argentina, Chile, China, Ecuador, India, Indonesia, Kuwait, Pakistan, Russia, Thailand, Ukraine, and Venezuela.

Countries placed on the Watch List or those which merit bilateral attention to address underlying IPR problems are Barbados, Belarus, Bolivia, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Dominican Republic, Egypt, Greece, Guatemala, Jamaica, Lebanon, Mexico, Paraguay, Peru, Romania, Tajikistan, Trinidad and Tobago, Turkey, Turkmenistan, Uzbekistan, and Vietnam. - AC

PARI with OMB Board of Directors and staff at the New World Hotel Coffee Shop, September 08, 2015

OMB Board of Directors at work From L-R: IPO Atty. Mark Herrin, IPO Atty. Edwin Dating, IPO OIC Atty. Allan Gepty, PARI Chairman Atty. Marivic Benedicto, PARI Ms. Cely Cruz, PARI Mr. Alexei Camurungan, & IPO Atty. Louie Calvario 5 SOUND RECORDING RIGHTS SOCIETY, INC. ACCREDITED

Sound Recording Rights Society, Inc. (SOUNDSRIGHT), is a Collective Management Organization (CMO) which was accredited by the Intellectual Property Office of the Philippines (IPOPHL) to represent the record labels and producers in the Philippines.

The Intellectual Property Office of the Philippines (IPOPHL) headed by IPO OIC Atty. Allan Gepty, IPO OIC for CMO Accreditation Atty. Edwin Dating, and IPOPHL's Atty. Mark Herrin presented the Certificate of L-R: Mr. Rene Salta (GMA Records), Mr. Alvin de Vera (Alpha Music), Soundsright President Atty. Accreditation to Soundsright Chairman Mr. Ramon Marivic Benedicto (Star Recording / ABS CBN Film Productions), Soundsright Chairman Mr. Ramon Chuaying, Soundsright Officers and Board Members on Chuaying (Universal Records), Intellectual Property Office of the Philippines (IPOPHL) OIC Atty. Allan May 14, 2015 at Victorino's Restaurant, Quezon City. Gepty, OMB Chairman Ronnie Ricketts, and Mr. Tony Ocampo (Viva/Vicor Music).

Soundsright authorizes business establishments, broadcasting networks, online radios to use copyrighted sound recordings owned by the member record labels and producers and collect royalties on behalf of the copyright owners under section 209 of the Intellectual Property Code of the Philippines (Republic Act No. 8293).

Section 209. Communication to the Public. - If a sound recording published for commercial purposes, or a reproduction of such sound recording, is used directly for broadcasting or for other communication to the public, or is publicly performed with the intention of making and enhancing profit, a single equitable remuneration for the performer or performers, and the producer of the sound recording shall be paid by the user to both the performers and the producer, who, in the absence of any agreement shall share equally.

Soundsright Members:

1. ABS-CBN Films Productions, Inc. 2. Alpha Music Corporation 3. Dyna Music Entertainment Corporation 4. Galaxy Records 5. GMA Records 6. Ivory Music & Video 7. MCA Music, Inc. 8. Polyeast Records Corporation 9. Praise, Inc. 10. Sony Music Entertainment (PHILS.), Inc. 11. Universal Records 12. Vicor Music Corporation 13. Viva Records Corporation 14. Warner Music Philippines, Inc. 6

Chairman Ronnie Ricketts resigned from the Optical Media Board (OMB)

After about six (6) years as the Chairman and CEO of the Optical Media Board (OMB), Chairman Ronnie Ricketts resigned from his post effective October of this year. During his term, he was able to execute unique measures that ensured the protection and promotion of Intellectual Property Rights in the Philippines. His “Bawal Kumopya” (No copying) anti-piracy campaign benefitted the movie and music industries during his time. His hard work and dedication also contributed to the removal of the Philippines from the U.S. Trade Representative (USTR) Special 301 Piracy Watch List. The Philippines is now on the second year outside the Watch List after 20 years of being in the list consistently. We would like to thank Chairman Ronnie Ricketts for his loyal and honorable service to the country. We wish him the best in his future endeavors. - AC

PARI Members IPO PHL has a new Director General as of December 2015: DIRECTOR GENERAL JOSEPHINE R. SANTIAGO LL.M. Corporate Members: Intellectual Property Office of the 1) ABS-CBN FILM PRODUCTIONS, INC. Philippines (IPOPHL) Director General 2) ALPHA MUSIC CORPORATION Josephine Rima-Santiago’s expansive 3) DYNA MUSIC ENTERTAINMENT CORPORATION and extensive experience in the field of 4) GALAXY RECORDS the intellectual property system 5) GMA RECORDS traverses two decades in government 6) IVORY MUSIC & VIDEO 7) MCA MUSIC, INC. and in the private realm. In government, 8) POLYEAST RECORDS CORPORATION she was former Deputy Director 9) PRAISE, INC. General, Intellectual Property Office (1999-2002); Director, 10) SONY MUSIC ENTERTAINMENT (PHILS.), INC. Technology Application and Promotion Institute of the Dept. of 11) UNIVERSAL RECORDS Science and Technology (2006-2008); andan Alternative 12) VICOR MUSIC CORPORATION Dispute Resolution (ADR) practitioner, Intellectual Property 13) VIVA RECORDS CORPORATION Office of the Philippines (2011-2015). In the private sector, she 14) WARNER MUSIC PHILIPPINES, INC. was an intellectual property rights consultant and legal practitioner, educator, and researcher.

Associate Members: See more at: http://www.ipophil.gov.ph/ 1) AIKA RECORDS 2) AMTRUST LEISURE CORPORATION 3) BELLHAUS ENTERTAINMENT, INC. Welcome Curve Entertainment Inc. 4) BUSINESS & ARTS, INC. 5) CURVE ENTERTAINMENT INC. We would like to welcome to the PARI 6) HOMEWORKZ ENTERTAINMENT SERVICES, INC. membership our newest associate member, 7) JESUIT COMMUNICATIONS FOUNDATION, INC. Curve Entertainment, Inc. 8) MUSIKATHA MINISTRIES FOUNDATION, INC. 9) PINEAPPLE RIDDIMS RECORDING COMPANY Curve Entertainment is a full-service entertainment company that 10) SHEPHERD’S VOICE PUBLICATION, INC. specializes in procurement of talents and music services. The 11) SIGNATURE MUSIC INC. company is headed by President & CEO Mr. Narciso O. Chan, Jr. 12) VERTICAL BREW MUSIC, INC. Email: [email protected] 7

Meeting between Soundsright, PRSP, IPO PHL, Norcode, and IFPI.

L-R: Soundsright OIC Alexei Camurungan, IPO Atty. Louie Calvario, IFPI KT Ang, Soundsright Chairman Ramon Chuaying, Norcode Saemund Fiskvik, Soundsright VP Alvin de Vera, PRSP Mr. John Lesaca, Soundsright President Atty. Marivic Benedicto, PRSP Legal Counsel, PRSP Ms. Mitch Valdez, & IPO Mediator.

JB Music recognized Mr. Ricky Ilacad of MCA Music () as one of the "Icons of Original Pilipino Music". (Rogue Magazine - Jan to Feb 2015 Issue)

Meeting with IFPI’s Mr. KT Ang. L-R: Ms. Lachmi Baviera (Warner Music Phil), Mr. PARI July board meeting and election of officers, 2015. Tony Ocampo (Viva/Vicor), Atty. Marivic Benedicto (Star Recording), IFPI Mr. KT Ang, Mr. Johnny Sy (Praise, Inc.), Mr. Alvin de Vera (Alpha Music), & Mr. Ramon Chuaying (Universal Records). PARI Chairman Atty. Marivic A Publication of Benedicto awarded the Gold Record Award to "Radical Love" by Victory PHILIPPINE ASSOCIATION OF THE RECORD Worship under Praise Inc. (w/ Mr. INDUSTRY, INC. Johnny Sy) Suite 207, Greenhills Mansion, 37 Annapolis St. Greenhills, San Juan City, Metro , 1500 Philippines Layout / Words by: Alexei B. Camurungan AC PARI Chairman For any inquiries, comments & suggestions, Atty. Marivic Please Contact Us at: Benedicto and PARI President Mr. Alvin de Vera Tel/Fax: 632-7250770 awarded the Gold Email: [email protected] Record Award to Website: www.pari.com.ph Alden Richards ‘ Facebook: www.facebook.com/PARIinc album under GMA Records (w/ Mr. Facebook Anti-Piracy: Rene Salta) www.facebook.com/reportmusicpiracytopari Twitter: twitter.com/PARIAntipiracy 8

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