Title
Broadcasting Franchise for Philippine Standard
Law
Republic Act No. 1121
Decision Date
Jun 15, 1954
Republic Act No. 1121 grants the Philippine Standard Products Co., Inc. a franchise to operate a radio broadcasting station in Manila, subject to government regulations and restrictions.

Questions (Republic Act No. 1121)

The grantee must start operation within two (2) years from the approval of the franchise. Failure to comply shall ipso facto cancel and void the franchise.

The franchise continues for twenty-five (25) years and is renewable upon expiration.

It does not take effect nor can powers be exercised until the Secretary allots the frequencies and wave lengths, determines the stations for use, and issues a license for such use.

On reasonable notice, the Secretary may act whenever: (1) such frequencies/wave lengths have been used or may be used to impair electrical communication, stifle competition/obtain monopoly, secure unreasonable rates, or otherwise violate law/public policy; (2) public interests require use for other purposes by government or other licensed persons; or (3) for any reason the public interests require.

They may summon witnesses, administer oaths, and take evidence through compulsory process of subpoena.

Stations must be constructed and operated to effect a minimum of interference with selected wave lengths, avoid interference with existing stations, and permit expansion of the grantee’s services.

The Government may take over and operate the stations upon order and discretion of the President.

The Government of the Philippines, through the Public Service Commission or other duly authorized office, may fix the maximum and minimum rates (Section 6).

The grantee pays the same taxes on its real estate, buildings, and personal property (exclusive of the temporary permit) as other persons/corporations, and is liable for all other taxes under the National Internal Revenue Code due to the franchise.

The grantee must hold the national, provincial, and municipal governments harmless from claims, accounts, demands, or actions arising from accidents or injuries to property or persons caused by construction or operation of the stations.

No private property shall be taken without proper condemnation proceedings and just compensation. Further, the authority to take and occupy land does not apply except for the actual necessary purposes required for the franchise.

It is unlawful for the grantee to use, employ, or contract for the labor of persons held in involuntary servitude.

Yes. The franchise is subject to amendment, alteration, or repeal by Congress. Rights to use or occupy public property revert to the respective governments upon termination by repeal, forfeiture, or expiration.

The grantee must execute a bond in favor of the Government of the Philippines in the sum of ten thousand pesos, conditioned on faithful performance of obligations during the first three years.

Acceptance must be given in writing within six (6) months after approval. After written acceptance and approval of the bond by the Secretary, the grantee is empowered to exercise the franchise privileges.

No, not without prior approval of Congress. It cannot lease, transfer, grant usufruct, sell, or assign, nor merge for the same purpose, without Congress’s approval.

It states that the franchise is not to be interpreted as an exclusive grant of the privileges provided for.

The grantee cannot require prior censorship. If a broadcast constitutes a violation of law or infringes a private right, the grantee is free from liability, civil or criminal, for such speech. However, during broadcast it must cut off content if it tends to propose/incite treason, rebellion, or sedition, or if the language/theme is indecent or immoral; willful failure is a valid cause for cancellation.

It takes effect upon approval (Section 17).


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