Legal basis and incorporated laws
- The grant is subject to the Constitution and to Act Numbered Thirty-eight hundred forty-six, entitled “An Act providing for the regulation of radio stations and radio communications in the Philippine Islands, and for other purposes.”
- The grant is also subject to Commonwealth Act Numbered One hundred forty-six, known as the Public Service Act, and their amendments.
- The grant is subject to other applicable laws not inconsistent with Republic Act No. 2980 (Section 1).
Purpose, public interest obligations
- Section 1 grants the temporary permit for commercial purposes and in the public interest.
- The grantee must provide public service time to enable the Government, through its stations, to reach the population on important public issues.
- The grantee must assist in the function of public information and education.
- The grantee must conform to the ethics of honest enterprise.
- The grantee must not use its stations to broadcast or telecast obscene or indecent language, act or scene, or to disseminate deliberately false information or willful misrepresentation, or to the detriment of the public health, or to incite, encourage, or assist in subversive or treasonable acts.
Permit requirements, timetables, and public-service duties
- The temporary permit granted under Section 1 is void unless the grantee begins the construction of at least one radio broadcasting or one television station within two years from the date of approval of the Act.
- The construction must be completed within four years from the date of approval of the Act.
- The public-service and conduct commitments in Section 1 apply during operation through the grantee’s radio broadcasting and television stations.
Bond, liability rules, and government priority
- The grantee must file a bond of fifty thousand pesos to guarantee full compliance and fulfillment of the permit conditions (Section 4).
- The grantee must hold the national, provincial and municipal governments of the Philippines harmless from all claims, accounts, demands, or actions arising from accidents or injuries—whether to property or to persons—caused by the construction or operation of the stations (Section 6).
- The President reserves a special wartime/national emergency power to cause the closing of the grantee’s station(s) or to authorize the use or possession of the stations by any Government department without compensation during the continuance of war, rebellion, public peril, or other national emergency when public safety requires (Section 3).
Censorship limits and cut-off duty
- The grantee must not require any previous censorship of any speech, play, act or scene, or other matter to be broadcast and/or telecast from its stations (Section 5).
- The grantee is free from any liability, civil or criminal for broadcast/telecast content if the content constitutes a violation of the law or infringement of a private right (Section 5).
- During any broadcast and/or telecast, the grantee must cut off from the air any speech, play, act or scene, or other matter whose tendency is to propose and/or incite treason, rebellion, or sedition, or whose language/theme is indecent or immoral (Section 5).
- Willful failure to cut off as required constitutes a valid cause for cancellation of this temporary permit (Section 5).
Equalization against more favorable competing permits
- If a competing person—natural or juridical—receives from Congress a similar temporary permit with any term or terms more favorable than those granted to the grantee, or terms tending to place the grantee at disadvantage, then those more favorable terms become part of the grantee’s permit.
- The more favorable terms ipso facto become part of the grantee’s terms and operate equally in favor of the grantee (Section 2).
Transfer restrictions and congressional approval
- The grantee must not tease (as written), transfer, grant the usufruct of, sell, or assign the temporary permit or the rights and privileges acquired thereunder to any person—natural or juridical—or merge with any other person without previous approval of the Congress of the Philippines (Section 7).
- Any person to whom the temporary permit is sold, transferred, or assigned must be subject to all conditions, terms, restrictions, and limitations of the temporary permit as fully and completely as if originally granted to that person (Section 7).
Congressional control, taxes, and non-exclusivity
- The temporary permit is subject to amendment, alteration, or repeal by Congress whenever the public interest so requires (Section 8).
- The grantee is liable to pay the same taxes on its real estate, buildings and personal property, exclusive of the temporary permit, as other persons—natural or juridical—are required to pay by law (Section 9).
- The grantee is further liable to pay all other taxes that may be imposed by the National Internal Revenue Code by reason of the temporary permit (Section 9).
- The temporary permit is not an exclusive grant of the privileges provided (Section 10).
Prohibition on exclusivity and other effects
- The permit confers privileges that operate without exclusivity, leaving Congress authority to grant similar privileges to others consistent with the Act’s restrictions and conditions (Section 10).
- The President’s emergency power to close or take over station operations without compensation is a continuing limitation on the grantee’s operational security during national emergency conditions (Section 3).