Attys. Marievic G. Ramos-Anonuevo,

April 18, 1996 Attys. Marievic G. Ramos-Anonuevo, Rose Marie M. King & Angelique A. Santos-Mangaser Sycip Salazar Hernandez & Gatmaitan 106 Paseo de Roxas, 1200 City of Makati Madam: This refers to your letter dated March 8, 1996 requesting opinion whether foreigners can invest in the equity of a domestic corporation engaged in the following businesses: 1. production and distribution of music records; 2. production and distribution of films; and 3. production of programs and films for television. It is your contention, on the basis of the arguments stated therein, that the above business activities do not constitute " mass media " under Article XVI, Section 11 (1) of the 1987 Philippine Constitution quoted in part hereunder: "The ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations or associations, wholly-owned and managed by such citizens." (Emphasis supplied) Please be advised that the Department of Justice previously defined the term " mass media " in the above provision as follows: "The term " mass media " in the Constitution refers to any medium of communication , a newspaper, radio, motion pictures , television, designed to reach the masses and tends to set the standards, ideals and aims of the masses ." (DOJ Opinion No. 24, s. 1986, citing Op. 163, s. 1973, emphasis supplied) It is clear from the above definition that " mass media " covers " motion pictures " and there is no doubt that such medium of communication plays an important role in the national life as they tend to affect or influence the people's way of thinking and lifestyle. Consequently, any entity engaged in the production and distribution thereof in the Philippines is subject to the afore-mentioned Constitutional restriction which seeks to insure that firms engaged in said line of business are free from foreign influence. In the case of " music records ", please be informed that in a Memorandum dated May 5, 1994 of the Office of the President addressed to the SEC, a different policy on " recording business " has been adopted. The pertinent provision of said Memorandum states thus: "In furtherance of the policy to promote foreign investments pursuant to the 1991 Foreign Investments Act (R.A. 7042), this Office hereby adopts the policy that the recording business shall not be considered as part " mass media " within the provision of Article XVI Section 11(1) of the 1987 Constitution and, as such, shall not be included in the Foreign Investments Negative List A pursuant to the 1991 Foreign Investments Act." (Emphasis supplied) It may be worth mentioning in this connection that Presidential issue, directive, proclamation, executive order or official act of the Office of the President are considered valid or legal and is binding upon all offices and bureaus under the executive branch. (Department of Justice Opinion No. 66, s. 1995, s. 1990; citing Secretary of Justice Ops. Nos. 147 and 164, s. 1990; No. 47, s. 1987; No. 22, s. 1984) Thus, the Commission, since then, allows foreign ownership in " music recording business ", but not in the case of "film, movie and television production and distribution" . cdlex Very truly yours, (SGD.) FE ELOISA C. GLORIA Associate Commissioner