We have been receiving more and more requests for cancellation of Permits for Television Exhibition (PTE) and the subsequent transfer or diversion of payments made for the canceled program to other programs presented by the station or producer concerned. In some instances, these transfer of payments already made are intended for materials that have not even been reviewed by the Board.

While the Board recognizes that present industry practices often result in programming schedule changes, present procedures need to be rationalized to ensure that the provisions of Presidential Decree No. 1986 and its implementing Rules and Regulations are complied with fairly and judiciously.

IN VIEW OF THIS, only payments made for Pay-Before-Broadcast (PBB) programs/episodes can be subject to payment transfers or payment diversions, and only for future episodes of the said program. If the program/episodes covered by the payments are not aired or exhibited, and the PTE's for the same are not extended or renewed, the payments made for the review of the material and the issuance of a PTE shall be considered forfeited.

This Memorandum Circular shall take effect on 07 February 2000.

Adopted: 21 Jan. 2000

(SGD.) ARMIDA P.E. SIGUION REYNA
Chairman