AN ACT RENEWING THE FRANCHISE GRANTED TO THE INTERACTIVE BROADCAST MEDIA

Case Overview and Summary

Summary of Republic Act No. 10753:

Renewal of Franchise
- Renews the franchise granted to Interactive Broadcast Media, Inc. (IBMI) under Republic Act No. 8210 for another 25 years, effective from September 5, 2021. (Section 1)
- Ratifies the transfer of IBMI's controlling interest to EDCANOY PRIME HOLDINGS, INC. (Section 1)

Operation of Stations
- IBMI's stations shall operate in a manner that results in minimum interference with existing or future stations. (Section 2)
- IBMI must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation of stations. (Section 3)

Responsibilities
- IBMI shall provide adequate public service time for government to reach the population on important issues. (Section 4)
- IBMI shall provide sound and balanced programming, assist in public information and education, conform to ethics of honest enterprise, and not broadcast obscene or indecent content or deliberately false information. (Section 4)

Government Rights
- The President has the right to temporarily take over, suspend, or authorize government use of IBMI's stations during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to IBMI. (Section 5)
- The radio spectrum is part of the national patrimony, and the use of it is a privilege that may be withdrawn after due process. (Section 5)

Term and Acceptance
- The franchise is valid for 25 years from September 5, 2021, unless revoked or cancelled earlier. (Section 6)
- The franchise shall be deemed revoked if IBMI fails to operate continuously for 2 years. (Section 6)
- IBMI must accept the franchise in writing to Congress within 60 days from the effectivity of the Act. (Section 7)

Self-Regulation
- IBMI shall not require prior censorship but must cut off any broadcast that incites treason, rebellion, sedition, or is indecent or immoral. Willful failure to do so is a valid cause for franchise cancellation. (Section 8)

Warranty and Indemnity
- IBMI shall hold the national, provincial, city, and municipal governments free from claims arising out of accidents or injuries caused by construction or operation of its stations. (Section 9)

Transfer of Franchise
- IBMI cannot lease, transfer, grant usufruct, sell, assign, or merge the franchise or controlling interest without prior approval from Congress. (Section 10)
- Any sale, transfer, or assignment must be reported to Congress within 60 days, or the franchise shall be revoked. (Section 10)
- Any entity to which the franchise is transferred shall be subject to the same conditions and limitations. (Section 10)

Ownership Dispersal
- IBMI shall offer at least 30% or a higher percentage as provided by law of its outstanding capital stock in a securities exchange in the Philippines within 5 years from commencement of operations. (Section 11)
- Non-compliance shall render the franchise revoked. (Section 11)

Compliance
- IBMI shall comply with any general broadcast policy law that Congress may enact. (Section 12)
- IBMI shall submit an annual report to Congress on its compliance with the franchise terms and operations on or before April 30 of every year. (Section 13)
- Failure to submit the annual report shall be penalized with a fine of P500 per working day of non-compliance, collected by NTC. (Section 14)

Equality Clause
- Any advantage, favor, privilege, exemption, or immunity granted to existing or future broadcasting franchises shall be accorded to IBMI, except for provisions concerning territory, life span, or type of service. (Section 15)
- The equality clause shall not apply to sale, lease, transfer, or grant of usufruct of legislative franchise with prior congressional approval. (Section 15)

Other Provisions
- The Act contains separability, repeatability, and non-exclusivity clauses. (Sections 16-17)
- The Act shall take effect 15 days after publication in at least two newspapers of general circulation. (Section 18)