Broadcasting Franchise for Philippine Standard

The franchise continues for twenty-five years and is renewable upon expiration under Section 2.
The franchise shall not take effect and the grantee shall not exercise any powers under the franchise until the Secretary of Public Works and Communications:
- has allotted frequencies and wave lengths for use; and
- has determined the stations to and from which each frequency and wave length may be used; and
- has issued a license for such use under Section 3.
Acceptance is required to activate the franchise: acceptance must be in writing within six months after approval of the Act and becomes effective only upon approval of the bond under Section 13.

The Secretary of Public Works and Communications, upon reasonable notice to the grantee, may change, cancel, or modify wholly or partly the allotments of frequencies and wave lengths under Section 3.
The Secretary may take such action when, in judgment, it is necessary to:
- prevent frequencies/wave lengths from being used to impair electrical communication, stifle competition, obtain a monopoly, secure unreasonable rates, or otherwise violate law or public policy;
- allow frequencies/wave lengths to be used for purposes required by the public interests, either by the Government or by other licensed individuals or corporations; or
- serve public interests for any reason deemed necessary under Section 3.
The Secretary is authorized to appoint boards, commissions, or agents to investigate and determine facts for decisions affecting frequency allotments, with powers to use compulsory process of subpoena, summon witnesses, administer oaths, and take evidence under Section 3.

The grantee must construct and operate its stations to achieve minimum interference with the selected frequencies and wave lengths, with the objective of avoiding interference with existing stations and permitting expansion of the grantee’s services under Section 4.

The Government of the Philippines reserves a special right, in time of war, insurrection, or public disorder, to take over and operate the stations upon order and discretion of the President of the Philippines under Section 5.

The Government reserves the right, through the Public Service Commission or other duly authorized office, to fix the maximum and minimum rates to be charged by the grantee under Section 6.

The grantee must pay the same taxes on its real estate, buildings, and personal property, exclusive of the temporary permit, as other persons or corporations are required by law under Section 7.
The grantee must pay all other taxes under the National Internal Revenue Code due to the franchise under Section 7.
The grantee must hold national, provincial, and municipal governments harmless from all claims, accounts, demands, or actions arising from accidents or injuries to property or persons caused by the construction or operation of the stations under Section 8.

The grantee may not take private property without proper condemnation proceeding and payment or tender of just compensation under Section 9.
Any authority to take and occupy land does not apply except to land required for the actual necessary purposes for which the franchise is granted under Section 9.

It is unlawful for the grantee to use, employ, or contract for labor of persons held in involuntary servitude under Section 10.

The franchise is subject to amendment, alteration, or repeal by Congress under Section 11.
Upon termination of the temporary permit—by repeal, forfeiture, or expiration in due course—the rights to use or occupy public property and places revert to the respective governments under Section 11.

As a condition of granting the franchise, the grantee must execute a bond in favor of the Government of the Philippines in the amount of ten thousand pesos, in a form and with securities satisfactory to the Secretary of Public Works and Communications, conditioned upon faithful performance during the first three years of the franchise under Section 12.
After three years from the date of acceptance, if the grantee has fulfilled its obligations, the Secretary cancels the bond under Section 12.

Written acceptance must be given within six months after approval of the Act under Section 13.
When accepted in writing and after approval of the bond by the Secretary of Public Works and Communications, the grantee is empowered to exercise the privileges granted under Section 13.

The grantee must not lease, transfer, grant the usufruct of, sell, or assign the temporary permit, or the rights and privileges acquired under it, to any person, firm, company, corporation, or other commercial or legal entity, and must not merge with any such company or corporation organized for the same purpose, without prior approval of Congress under Section 14.
Any corporation to which the franchise is sold, transferred, or assigned is subject to Philippine corporation laws existing at the time or enacted later, and the transferee must be subject to all conditions, terms, restrictions, and limitations of the franchise as fully as if the franchise had been originally granted to it under Section 14.

The franchise is not an exclusive grant of the privileges provided under Section 15.

The grantee must not require previous censorship of any speech, play, or other matter broadcast from its stations under Section 16.
The grantee is free from any liability, civil or criminal, for speech, play, or other matter broadcast, if the content violates law or infringes a private right, subject to the grantee’s required cut-off under Section 16.
During any broadcast, the grantee must cut off from the air any speech, play, or other matter if its tendency is to propose and/or incite treason, rebellion or sedition, or if the language used or the theme is indecent or immoral.
Willful failure to cut off constitutes a valid cause for cancellation of this permit under Section 16.

Republic Act No. 1121 takes effect upon its approval under Section 17.
The Act was approved on June 15, 1954.