Law Summary

Section 1: Grant of Temporary Permit

• Legal Principle/Provision: This section grants the Metropolitan Broadcasting Co., Inc. a temporary permit to construct, maintain, and operate radio and television broadcasting stations in the Philippines, contingent on government establishment of similar services.
• Key Definitions Introduced:
  • "Temporary permit" – authorization to operate broadcasting stations under specified conditions.
• Important Requirements:
  • Construction of at least one radio or television station must begin within two years from the Act’s approval.
  • Completion of the station must occur within two years from the start of construction.
• Relevant Timeframes:
  • Two years to commence construction.
  • Two years from commencement to complete the station.
• Consequences: The permit becomes void if construction is not initiated within the stipulated timeframe.
• Public Interest Obligations:
  • Must provide adequate public service time for government communication on public issues.
  • Must adhere to ethical standards and avoid broadcasting obscene content or misinformation.

Section 2: Applicability of Other Laws

• Legal Principle/Provision: This section mandates that relevant provisions from existing laws governing radio stations will apply to television stations.
• Cross-References:
  • Act No. 3846 (regulation of radio stations)
  • Act No. 3997 (Radio Broadcasting Law)
  • Commonwealth Act No. 146 (Public Service Act)

Section 3: Bond Requirement

• Legal Principle/Provision: The grantee is required to file a bond.
• Key Definitions Introduced:
  • "Bond" – a financial guarantee for compliance with permit conditions.
• Important Requirements:
  • The bond must be valued at fifty thousand pesos.

Section 4: Favorable Terms for Competing Permits

• Legal Principle/Provision: If a competing entity receives more favorable terms, those terms automatically apply to the grantee.
• Consequences: Ensures fairness among competing broadcasting entities.

Section 5: Tax Liabilities

• Legal Principle/Provision: The grantee's tax obligations are outlined.
• Key Definitions Introduced:
  • "Real estate, buildings, and personal property" – assets subject to taxation.
• Important Requirements:
  • The grantee must pay taxes similar to other corporations.
  • Must comply with National Internal Revenue Code tax requirements.

Section 6: Government's Right to Operate Stations

• Legal Principle/Provision: If the government decides to operate the broadcasting stations, the grantee must transfer them.
• Important Requirements:
  • Transfer of stations includes all serviceable equipment at cost, less depreciation.

Section 7: Censorship and Liability

• Legal Principle/Provision: Provisions regarding censorship and liability for broadcasting content.
• Key Definitions Introduced:
  • "Censorship" – prior review of content before broadcasting.
• Important Requirements:
  • No prior censorship required; however, the grantee can cut off broadcasts that incite treason, rebellion, or are indecent.
• Consequences: The grantee is free from liability for unlawful content, provided it takes action to remove such content during broadcasting.

Section 8: Transfer Restrictions

• Legal Principle/Provision: Restrictions on the transfer of the temporary permit and its rights.
• Important Requirements:
  • The permit cannot be leased, sold, or assigned without Congressional approval.
  • Any transferee must adhere to all terms of the permit.

Section 9: Effectivity

• Legal Principle/Provision: The Act takes effect upon approval.
• Consequences: Immediate enforcement of the provisions upon enactment.

Key Takeaways

• Metropolitan Broadcasting Co., Inc. is granted a temporary permit under strict conditions, including construction timelines and public service obligations.
• The grantee must comply with existing regulatory frameworks applicable to radio and television.
• There are financial and operational safeguards, including bond requirements and specific tax obligations.
• The government retains rights to the broadcasting stations if needed, with no prior censorship but liability protections under certain conditions.
• Transfer of the permit is heavily regulated, requiring Congressional oversight.