Title
Republic Act No. 11579
Date
Jul 30, 2021
Republic Act No. 11579 grants Servotron Industries, Inc. a franchise to operate radio and television broadcasting stations in the Philippines, subject to compliance with regulations, while ensuring public service, child-friendly programming, and adherence to ethical standards.
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Law Summary

SECTION 1: Nature and Scope of Franchise

  • Legal Principle: Servotron Industries, Inc. is granted a franchise to construct, install, operate, and maintain radio and television stations throughout the Philippines.
  • Key Definitions:
    • "Grantee" refers to Servotron Industries, Inc., its successors, or assignees.
  • Requirements:
    • Operations must comply with the Constitution and relevant laws.
    • The franchise covers the use of available frequencies for both analog and digital broadcasting.

• Franchise allows for the use of new technology in broadcasting.
• Scope includes microwave and satellite technologies.

SECTION 2: Manner of Operation of Stations or Facilities

  • Legal Principle: Stations must minimize interference with existing broadcasts.
  • Requirements:
    • Stations must not diminish their own signal quality.

• Operations should ensure optimal transmission quality.

SECTION 3: Prior Approval of the National Telecommunications Commission (NTC)

  • Legal Principle: Grantee requires authorization from the NTC for station operation.
  • Key Definitions:
    • "NTC" refers to the National Telecommunications Commission.
  • Requirements:
    • Must secure necessary permits and licenses.
    • NTC cannot unreasonably withhold approvals.

• Violations may lead to permit revocation by the NTC.
• NTC can recommend franchise revocation to Congress for violations.

SECTION 4: Responsibility to the Public

  • Legal Principle: Grantee must provide public service programming.
  • Requirements:
    • Free airtime for government announcements on public issues.
    • Maintain ethical broadcasting standards and avoid harmful content.

• Minimum public service time: 10% of paid commercials.
• Must allocate at least 15% of daily airtime to child-friendly programming (RA No. 8370).

SECTION 5: Right of the Government

  • Legal Principle: The government reserves rights over the radio spectrum.
  • Requirements:
    • Government may temporarily operate facilities in emergencies.

• Compensation to the grantee is mandated during government operations.

SECTION 6: Term of Franchise

  • Legal Principle: The franchise lasts for 25 years.
  • Timeframes:
    • Franchise is automatically revoked if operations cease for 2 years.

• Effectivity begins upon the enactment of the Act.

SECTION 7: Self-Regulation by and Undertaking of the Grantee

  • Legal Principle: Grantee is not liable for content unless it violates laws.
  • Requirements:
    • Must cease broadcasts that incite treason or are indecent.

• Failure to comply can lead to franchise cancellation.

SECTION 8: Warranty in Favor of the National and Local Governments

  • Legal Principle: Grantee must indemnify government entities from claims.

• Liability for accidents during construction or operation is borne by the grantee.

SECTION 9: Commitment to Provide and Promote Employment

  • Legal Principle: Grantee must create job opportunities.
  • Requirements:
    • Priority for local residents in hiring.

• Compliance with labor standards is mandatory; annual reporting to SEC required.

SECTION 10: Sale, Lease, Transfer, or Assignment of Franchise

  • Legal Principle: Franchise cannot be transferred without Congressional approval.
  • Requirements:
    • Report any change in ownership to Congress within 60 days.

• Noncompliance leads to automatic franchise revocation.

SECTION 11: Dispersal of Ownership

  • Legal Principle: Encourage public participation in ownership.
  • Requirements:
    • At least 30% of capital stock must be offered to Filipino citizens within 5 years.

• Noncompliance results in franchise revocation.

SECTION 12: Reportorial Requirement

  • Legal Principle: Grantee must submit an annual report to Congress.
  • Timeframes:
    • Reports due by April 30 each year.

• Reports must include operational updates and compliance status.

SECTION 13: Fine

  • Legal Principle: Penalties for noncompliance in reporting.
  • Consequences:
    • A fine of P500.00 per day for failure to submit reports.

SECTION 14: Equality Clause

  • Legal Principle: Grantee entitled to advantages from other broadcasting franchises.

• Must be reviewed and approved by Congress.

SECTION 15: Repealability and Nonexclusivity Clause

  • Legal Principle: Franchise is subject to amendments and cannot be exclusive.

SECTION 16: Separability Clause

  • Legal Principle: Invalid provisions do not affect the validity of remaining sections.

SECTION 17: Repealing Clause

  • Legal Principle: Conflicting laws are repealed or modified.

SECTION 18: Effectivity

  • Legal Principle: Act takes effect 15 days post-publication.

Key Takeaways

  • Servotron Industries, Inc. is granted a 25-year franchise for broadcasting.
  • The franchise requires adherence to public service obligations and operational regulations.
  • Violations can lead to penalties, including revocation of permits or the franchise itself.
  • The grantee must report annually to Congress and promote public ownership in its capital structure.

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