AN ACT GRANTING THE LUZON BROADCASTING COMPANY
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AN ACT GRANTING THE LUZON BROADCASTING COMPANY
Republic Act No. 4137
June 20, 1964
Case Overview and Summary
Summary of Republic Act No. 4137Granting of Franchise
- The Luzon Broadcasting Company, Inc. is granted a franchise to construct, maintain and operate radio broadcasting stations within the Philippines for commercial purposes and in the interest of the public. (Section 1)
- The franchise is subject to applicable provisions of other relevant laws on radio broadcasting. (Section 2)
Duration and Conditions
- The franchise is valid for 25 years from the date the stations are put into operation. (Section 3)
- Construction of at least one station must begin within 3 years and be completed within 4 years from the approval date, or the franchise becomes void. (Section 3)
Obligations of the Grantee
- Provide adequate public service time for the government to reach the population on important issues. (Section 4)
- Assist in public information and education functions. (Section 4)
- Conform to the ethics of honest enterprise. (Section 4)
- Not broadcast obscene, indecent, false, or misrepresented content, or anything detrimental to public health and morals or inciting subversive acts. (Section 4)
- File a bond of 25,000 pesos as a guarantee of faithful performance during the first 3 years. (Section 5)
Acceptance and Approval
- Acceptance of the franchise must be given in writing within 6 months after approval. (Section 6)
- The grantee can exercise the privileges after acceptance and approval of the bond by the Secretary of Public Works and Communications. (Section 6)
Operation and Licensing
- Stations cannot operate until the Secretary of Public Works and Communications allocates the frequency and wave lengths and issues a license. (Section 7)
- Stations must be constructed and operated to avoid interference with existing stations and allow expansion of service. (Section 8)
Non-Discrimination Clause
- If any other individual or entity receives a franchise with more favorable terms, those terms shall automatically apply to this grantee as well. (Section 9)
Taxes and Liabilities
- The grantee is liable to pay taxes on its real estate, buildings, and personal property, unless exempted. (Section 10a)
- The grantee is liable to pay all other taxes imposed by the National Internal Revenue Code due to this franchise. (Section 10b)
- The grantee shall hold the government free from claims arising out of accidents or injuries caused by the construction or operation of the stations. (Section 11)
Government Takeover
- The government may maintain and operate any of the authorized stations by taking them over from the grantee at cost, less reasonable depreciation. (Section 12)
Presidential Powers
- The President has the right to cause the closing of the stations or authorize temporary government use during war, rebellion, public peril, emergency, calamity, disaster, or disturbance of peace and order, with due compensation to the grantee. (Section 13)
Censorship and Liability
- The grantee shall not require previous censorship, but must cut off any broadcast that incites treason, rebellion, sedition, or is indecent or immoral, or face cancellation of the franchise. (Section 14)
- The grantee is free from liability for any broadcast that violates the law or infringes on private rights, as long as it cuts off such broadcast. (Section 14)
Transfer and Assignment
- The grantee cannot lease, transfer, grant usufruct, sell, assign, or merge the franchise or rights without approval from the Congress of the Philippines. (Section 15)
- Any entity to which the franchise is transferred shall be subject to all conditions, terms, restrictions, and limitations of the franchise. (Section 15)
Definition of "Grantee"
- The term "grantee" refers to the Luzon Broadcasting Company, Inc., its representatives, successors, or assigns, unless the context indicates otherwise. (Section 16)
Amendment and Repeal
- The franchise is subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest requires it. (Section 17)
- The franchise shall not be interpreted as an exclusive grant of the privileges provided. (Section 17)
Effectivity
- The act shall take effect upon its approval. (Section 18)
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AN ACT GRANTING THE LUZON BROADCASTING COMPANY
Republic Act No. 4137
•June 20, 1964
REPUBLIC ACT No. 4137
AN ACT GRANTING THE LUZON BROADCASTING COMPANY, INC., A FRANCHISE TO CONSTRUCT, MAINTAIN AND OPERATE RADIO BROADCASTING STATIONS WITHIN THE PHILIPPINES FOR COMMERCIAL PURPOSES.
Section 1. Subject to the provisions of the Constitution, the Luzon Broadcasting Company, Inc., is hereby granted a franchise to construct, maintain and operate radio broadcasting stations within the Philippines for commercial purposes and in the interest of the public.
Section 2. Such provisions of 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;" Act Numbered Thirty-nine hundred ninety-seven, known as the Radio Broadcasting Law; Commonwealth Act Numbered One hundred forty-six, known as the Public Service Act, and their amendments, as are applicable to radio broadcasting stations shall be applicable, as far as practicable, to the radio stations referred to in Section one hereof.
Section 3. The franchise herein granted shall continue for a period of twenty-five years from the date the said stations shall be put in operation, and...
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