OMB orders CD-R King to pay P1.5M for illegal importation
By Erwin Oliva
INQUIRER.net
First Posted 17:46:00 02/05/2008
MANILA, Philippines -- The Optical Media Board (OMB) has ordered CD-R King, one of the country’s biggest suppliers of optical media and related technology products, to pay P1.5 million in administrative penalties.
This was after the OMB, through the Bureau of Customs, found that the company was allegedly importing optical media discs without proper import permits from the agency, according to Cyrus Valenzuela, officer-in-charge of legal service division of OMB, in an interview.
The OMB sent its order Tuesday to CD-R King, informing them of their administrative violation of provisions of Republic Act 9239, or the Optical Media Act of 2003.
CD-R King is a registered company allowed by the OMB to import blank, rewritable optical discs. Valenzuela said that the OMB is also seeking the cancellation of the license of CD-R King to sell optical media in the country. CD-R King, however, still has a chance to appeal to OMB about the cancellation of its license, the government executive said.
The OMB has asked the CD-R King to produce a report of optical media discs they have brought into the country.
“They were ordered to give their inventory for the past three years The law requires them to maintain inventory of up to five years,” the government executive said.
The Bureau of Customs seized optical media discs on January 21 allegedly being imported by CD-R King, which OMB later found to be lacking proper import permits.
Coincidentally, OMB has recently conducted its “validation inspection” to verify a tip it received that the same company was using unlicensed software in its operations in the country.
“We were disappointed to find that CD-R King might be using pirated software in their operations,” said Atty. Rosendo Meneses, Executive Director of the Optical Media Board, in a separate interview.
OMB is now verifying the software inspected in CD-R King branches if they’re indeed legitimate software, the government executive said.
At least 20 agents of the OMB were sent to branches of CD-R King, namely SM Fairview, Park Square, MRT Ayala Station, Starmall, SM Marilao, Trinoma, SM Megamall and SM Valenzuela.
The OMB’s inspection sought to verify allegations that CD-R King was using pirated software, the agency said. This was also after they’ve conducted their own surveillance of the company.
Valenzuela said CD-R King is given until end of the week to show that they were not using any unlicensed software.
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