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NATIONAL COMMUNICATIONS COMMISSION

Acts

Issue Date:2010/03/10

Cable Radio and Television Act

71 Articles promulgated in full by the Presidential Order on Aug.11,1993. Ref:Hua-Zong -(1)- Yi Tze No.3912
76 Articles amended and promulgated in full by the Presidential Order on Feb. 3, 1999. Ref:Hua -Zong -(1) -Yi Tze No. 8800021600

The amendment of Article 3 promulgated by the Presidential Order on Jan. 19, 2000.Ref: Hua-Zong-(1)-Yi Tze No. 8900011900

The amendment of Articles 19,51and 63 promulgated by the Presidential Order on May 30, 2001. Ref:Hua-Zong-(1)-Yi Tze No. 9000106640

The amendment of Articles 16, 19, 23 and 39 promulgated by Presidential Order on Jan. 15, 2003. Ref:Hua-Zong-(1)-Yi Tze No. 09200006880

The amendment of Articles 19, 20, 24 and 68,and addition of Article 37-1 promulgated by the Presidential Order on Dec. 24, 2003. Ref: Hua-Zong-(1)-Yi Tze No. 09200239041

The addition of Article 35-1 promulgated by Presidential Order on Jan. 29, 2007. Ref:Hua-Zong-(1)-Yi  No. 09600011661

Chapter I  General Provisions 

Article 1

This Act is enacted to promote the sound development of the cable radio and television industry, to safeguard the audio-visual rights and interests of the public, and to enhance social well-being.

Article 2

The terms used in this Act shall be defined as follows:

Cable Radio and Television: Refers to the transmission of images and sound through cable for direct viewing and listening by the public; 

Cable Radio and Television System (referred to hereinafter as "system"): Refers to cable radio and television transmission networks and receiving facilities including cables, microwaves, satellite earth stations and related equipment; 

Cable Radio and/or Television System Operator (referred to hereinafter as "system operator"): Refers to a cable radio and/or television operator approved by law; 

Channel Provider: Refers to a program and advertisement supplier business which authorizes, under a specific name, program and advertisement transmission to cable television operators. The term also refers to a supplier business transmitting programs and advertisements itself or as an agent; 

Basic Channel: Refers to a channel whose visual and/or audio reception can be made upon regular payment of basic subscription fees; 

Pay Channel: Refers to a channel other than the basic channels that requires additional fees for visual and/or audio reception; 

Pay-Per-View Program: Refers to a program that requires payment for each visual and/or audio reception; 

Encryption: Refers to the technique that makes descrambling necessary for the visual and/or audio reception of a program; 

Head-ends: Refers to facilities and locations for receiving, processing, and transmitting cable radio and/or television signals, which are then transmitted to feeder cable networks; 

Trunk Cable Network: Refers to a network that connects the head-end of system operators to the head-end that transmits cable radio and/or television signals; 

Feeder Cable Network: Refers to a cable network and facilities that connect head-ends to subscribers; 

Inserted Characters: Refers to words and graphics appearing on the TV screen which have been edited and compiled, and which are not part of the original contents being transmitted; 

Cable Radio and/or Television Programs (referred to hereinafter as "programs"): Refers to images, sounds, and contents other than commercials that are transmitted by system operators; and 

Cable Radio and Television Advertisements (referred to hereinafter as "advertisements"): Refers to images, sounds, and contents transmitted by system operators to promote commodities, concepts, services, or images. 

Article 3

The regulatory agency referred to in this Act shall be the Government Information Office of the Executive Yuan (referred to hereinafter as "GIO") at the central government level, the Department/Bureau of Information at the provincial/special municipal government level, and the Bureau of Information at the county/city government levels.

The agency in charge of the engineering techniques of cable radio and television systems shall be the Ministry of Transportation and Communications (MOTC).

Regulations governing the engineering techniques mentioned in the preceding Paragraph shall be established by the MOTC.

Article 4

System operators engaged in telecommunications operations shall abide by relevant provisions of the Telecommunications Act.

Article 5

System operators installing the networks themselves shall apply to the roads authority for approval if the networks are to be laid underground; for networks to be suspended from poles, application shall be filed with the telecommunications and electrical utility agencies for approval. The same provisions shall apply to authorized cable radio and television operators.

System operators may rent existing underground systems or terminal facilities to install the networks mentioned in the preceding Paragraph. The underground and suspended networks shall be installed in accordance with relevant acts and regulations.

The central regulatory agency shall, in conjunction with the MOTC, assist in resolving problems related to the installation of trunk cable networks in outlying areas.

Article 6

Underground networks, mentioned in Paragraph 1 of the preceding Article, which cannot be installed without passing through another person's property or building, or which can be installed but at exorbitant cost, may pass through another person's property or building, but such methods shall be adopted where it will cause the least damage, and compensation shall be paid.

For the installation of underground networks mentioned in the preceding Paragraph, a written notification shall be given to the property or building owners or occupants 30 days before the installation work begins.

If there is a change in situation after the installation of the network referred to in Paragraph 1, the property or building owners or occupants may request a change in the installation.

If anyone takes exception to the preceding three paragraphs, he may apply to the region's arbitration committee for arbitration or file a civil actsuit.

Article 7

In the event of a natural disaster or emergency, the regulatory agencies may direct system operators to stop transmitting programs or designate specific programs or messages to be transmitted, in order to safeguard public safety and welfare.

When the situation mentioned in the preceding Paragraph no longer exists, the regulatory agencies shall immediately notify the system operators to revert to transmission of regular programming.

Measures for dealing with natural disasters and emergencies mentioned in Paragraph 1 shall be established by the central regulatory agency.

Chapter II  Cable Radio and Television Review Committee

Article 8

The central regulatory agency shall set up a Cable Radio and Television Review Committee (referred to hereinafter as "review committee") to review the following:

Permit for or revocation of permit for cable radio and television establishment; 

Permit for or revocation of permit for cable radio and television operation; 

Evaluation of the implementation of the operations plan; 

Arbitration of program fees and other disputes between system operators and channel providers; 

Arbitration of disputes among system operators; and Other items as stipulated by this Act, or items submitted for review by the central regulatory agency. 

Article 9

The review committee shall comprise 13 to 15 members who shall include the following persons:

Ten to 12 academics and experts; and A representative each from the MOTC, GIO, and Consumer Protection Commission. 

The review committee shall invite a government representative of the relevant special municipality or county/city to be present, when reviewing a proposal in the appropriate area of jurisdiction. The rights and obligations of the representative shall be the same as the review committee members.

Not more than one-half of the review committee members shall be of the same political party. They may not participate in political activities during their tenures.

Article 10

The committee members mentioned in Item 1 of Paragraph 1 of the preceding Article shall be selected by the Premier for a term of three years, and their names shall be submitted to the Legislative Yuan for record. The members may serve a maximum of two terms. If a member resigns, dies, or is unable to carry out his or her duty, the member shall be dismissed and replaced by another until the end of that term.

Article 11

When the review committee members meet, they shall elect from among themselves a person to chair the meeting.

Article 12

Three-fifths of the review committee members must be present to conduct a meeting, and the concurrence of more than half of those present is required to pass a resolution.

Article 13

The resolution methods shall be decided by the committee members through discussion.

Article 14

Members of the review committee shall carry out their duties fairly and objectively. A member shall remove himself from the case, if any of the following conditions exists:

If he or she, his/her spouse, ex-spouse, or un-married partner is a director, supervisor, or managerial officer of the applying cable radio and/or television operator; or If he or she is related by blood within the fifth degree of relationship to the director, supervisor, or managerial officer of the applying cable radio and/or television operator, or is related by marriage within the third degree, or formerly had any of these relationship. 

Article 15

Cable radio and television operators may apply for members of the review committee to remove themselves from the case, if they believe that these members may be prejudiced or unqualified.

Ruling on the application shall be made by the chairperson.

Article 16

If a review committee member who should have removed himself from the case, did not do so, the central regulatory agency may revoke the resolution on its own motion or upon application by the concerned party, within one month of the resolution.

Permission(s) thus granted by the committee for the establishment or operation of cable radio and television businesses shall be revoked by the central regulatory agency and the respective permit(s) annulled.
The review committee shall reconsider the case and make a new resolution upon its revocation as mentioned in the preceding Paragraph.

Article 17

The reviewing rules of the review committee shall be established by the central regulatory agency.

Chapter III  Regulation of Operations

Article 18

Applications shall be filed with the central regulatory agency for permits to establish and operate cable radio and/or television.

Article 19

The organization operating a cable radio and/or television system shall be a company limited by shares.

Total direct and indirect foreign investment in a company operating a cable radio and/or television system shall be less than 60 percent of the total shares issued by the company. Direct foreign shareholding is limited to legal entities, and the total shares directly held by foreign shareholders shall not exceed 20 percent of the total shares issued.

The minimum paid-in capital of a cable radio and/or television system shall be stipulated by the central regulatory agency.

The government and political parties, as well as foundations established with their endowments, and those commissioned by them, may not directly or indirectly invest in cable radio and/or television systems.

Existing situations for the government, political parties, and foundations established with their endowments, and those commissioned by them, that do not meet the provisions of the preceding paragraph prior to the implementation of the revision of this Act, shall be corrected within two years of the implementation of the revision of this Act.

Cable radio and/or television systems may not broadcast programs, short films, or commercials funded or produced by the government in which election candidates participate. The same applies to programs, short films, and commercials with election candidates as the theme and which are funded or produced by the government.

Article 20

At least two-thirds of the directors and two-thirds of the supervisors of a company operating a cable radio and/or television system shall be citizens of the Republic of China.

The chairman of the board of directors shall be a citizen of the Republic of China.

Political party workers, political appointees, and elected public officials may not invest in cable radio and/or television systems. Total shareholdings by their spouses, relatives by blood within the second degree of relationship, and lineal relatives by marriage, may not hold more than 1 percent of the issued shares of a cable radio and/or television system. Cable radio and/or television systems that have existing situations that do not meet these provisions prior to the implementation of the revision of this Act shall have them corrected within two years of the implementation of the revision of this Act.

The government, political parties, political party workers, and elected public officials may not be promoters, directors, supervisors, or managerial officers of a cable radio and/or television system. For those who already hold these positions prior to the implementation of the revision of this Act, the cable radio and/or television system shall relieve them of their duties within six months of the implementation of the revision of this Act.

The scope of political party workers, political appointees, and elected public officials mentioned in the preceding two paragraphs shall be defined in the Enforcement Rules of this Act.

Article 21

The following shall apply to system operators, their affiliates, and their directly or indirectly controlled system operators:

The number of subscribers shall not exceed one-third of the total number of subscribers in the nation; 

The number of system operators shall not exceed one-half of the total number of system operators in an administrative district; however, this limitation shall not apply to an administrative district where there is only one system operator; and The number of system operators shall not exceed one-third of the total number of system operators in the nation. 

The above-mentioned total number of subscribers in the nation, the total number of system operators in an administrative district, and the total number of system operators in the nation shall be announced by the central regulatory agency.

Article 22

To establish cable radio and/or television, an applicant shall complete and submit an application form, along with an operations plan, to the central regulatory agency within the publicly announced period.

The operations plan shall explicitly include the following details:

The service area of the cable radio and/or television system; 

Timetable for setting up the system and the scheduled starting date of operation; 

Financial structure; 

Structure of the organization; 

Channel plan and types; 

In-house program production and transmission plan; 

Rates and their calculation formula; 

Subscriber service; 

Plan for polls of service-approval levels and channel-viewing rates; 

Description of engineering techniques and facilities; 

Plan for business promotion; 

Plan for personnel education and training; 

Plan for technological development; 

Names (or the appellation) and personal information of directors, supervisors, managers, or incorporators; and 
Other items, as specified by the central regulatory agency. 

Article 23

The central regulatory agency may reject applications by foreign investors planning to establish or operate cable radio and/or television in the ROC, without resolution by the review committee, if it deems that the foreign investment would have an adverse effect on national security, public order, or social morals.

Applications by foreigners for investment in cable radio and/or television shall be rejected under any of the conditions described in the preceding Paragraph or when they violate Paragraph 2 of Article 19.

Article 24

The review committee shall pass a resolution of disapproval of an application to establish and operate cable radio and/or television under any of the circumstances:

Violation of Article 19 or Article 20; 

Violation of Article 21; 

Failure to comply with the MOTC's regulations on engineering techniques and management, as stipulated in Paragraph 3 of Article 3; 
Revocation of the applicant's establishment permit or operating license within the past two years, due to violation of this Act; or 
A director, supervisor, or managerial officer of the applicant has any of the conditions described in Article 30 of the Company Act. 

Article 25

The review committee may pass a resolution of approval of the application to establish or operate cable radio and/or television, when such application meets the following criteria:

The financial plan and techniques of the applicant are sufficient to carry out the operations plan; 

The applicant will provide special channels, free of charge, for government agencies, schools, organizations, and local people to transmit programs of public interest, literature, art, and social education; and Services provided and in-house program production meet the local public's interest and needs. 

Article 26

Subsequent to obtaining the establishment permit, when a change is to be made in the content of the application form/or and operations plan, the applicant shall file an application with the central regulatory agency for approval of the change. This provision shall not apply to changes in the contents specified in Items 4, 11, and 12 of Paragraph 2 of Article 22.

If the changes mentioned in the preceding Paragraph involve registration of establishment, the said applicant shall first obtain approval from the central regulatory agency before it proceeds with business establishment or registration.

The preceding two paragraphs shall apply mutatis mutandis to a change in the system operator's directors, supervisors, or managers.

Article 27

If the review committee passes a resolution of disapproval with regard to an application to establish cable radio and/or television, the central regulatory agency shall reject the application and provide a statement of the reason(s) for the rejection. If the decision is to approve the application, the central regulatory agency shall issue an establishment permit to the applicant.

If the applicant disagrees with the rejection referred to in the preceding Paragraph, the applicant may file an application stating its reason(s) for re-examination within 30 days of receiving the notification of rejection. Within 30 days of receiving an application for re-examination, the review committee shall pass a resolution of approval or rejection and provide a statement of the reason(s) for its decision. Only one application for re-examination is allowed.

Article 28

When a change is to be made in the contents of the establishment permit, an application for a new permit shall be filed with the central regulatory agency within 15 days of the change. In the event that the establishment permit is lost, an application for re-issuance of the permit shall be filed within 15 days after a statement declaring the lost permit invalid is published in the newspaper.

Article 29

After receiving the establishment permit for cable radio and/or television, an applicant shall complete the procedures for registration and shall submit necessary documents in the area and within the period of time specified by the central regulatory agency. In the event that the documents are incomplete and are allowed to be completed later, the central regulatory agency shall give notice of a deadline for the applicant to complete all documents.

Article 30

System installation may be implemented in stages. The time for completing the entire installation shall not exceed three years. In the event that the installation cannot be completed within the specified period of time, an application stating the reason(s) for the delay shall be filed with the central regulatory agency within two months prior to the expiration of the scheduled time for completing the entire installation. An extension may not exceed six months and shall be allowed only once.

Article 31

Preparation of the system shall be completed within the system installation timetable stated in the operations plan. An application for the system's engineering inspection shall be filed with the central regulatory agency within the installation timetable.

Within six months from the date of receiving an application for a system's engineering inspection mentioned in the preceding Paragraph, the central regulatory agency shall conduct the inspection in conjunction with the MOTC and the local regulatory agency.

Within two months after the system passes the inspection, the applicant shall apply to the central regulatory agency for an operating license. Operation shall not commence without an operating license issued by the central regulatory agency.

Cable transmission shall commence within one month after the operating license is received, except when the system operator has justifiable reasons and the delay is approved by the central regulatory agency.

Article 32

The zoning and adjustment of the service areas of cable radio and/or television shall be announced by the central regulatory agency after consultations with the special municipal or county/city government on the following items:

Administrative districts; 

Natural and geographical environments; 

Population distribution; and 

Economic effect. 

Article 33

The central regulatory agency shall announce a new period for the acceptance of the applications, in the event of any of the following situations:

No person files an application in the service area within the period announced; 

No person in the area obtains an establishment permit or operating license; 

A system operator in the area ceases operation, and the review committee determines that new applications shall be accepted; or When system operators in the area monopolize, combine, engage in concerted action, or violate the provisions of Article 21 and thereby impede or limit fair competition, the central regulatory agency, in order to promote fair competition, shall initiate a new period for the acceptance of applications after submitting a report with reasons to the review committee for resolution. 

After announcing a new period for the acceptance of the applications, should any of the situations mentioned in the preceding Paragraph still persist, the central regulatory agency shall select one of the following methods for handling the situation, based on actual requirements.

Re-zone and adjust the service areas in conjunction with the special municipal or county/city government; 

Encourage or provide guidance to system operators from other administrative districts to operate; or Other methods adopted by the review committee.

The encouragement or guidance method of Item 2 of the preceding Paragraph shall be determined by the central regulatory agency. 

Article 34

A system operator shall not pass the operation of a cable radio and/or television system to the hands of other persons.

Article 35

The operating license of a system operator shall be valid for nine years. A system operator wishing to continue operation after the expiration date of the operating license, shall apply to the central regulatory agency for license renewal within the first six months of the ninth year of the operating license.

If there is a change in the contents of the aforementioned operating license, an application for a new license shall be filed with the central regulatory agency within 15 days of the change. If the operating license is lost, an application for reissuing an operating license shall be filed within 15 days after an announcement to annul the original license is placed in the newspaper.

Article 35-1

When reviewing the application for the renewal of the operating license, the central regulatory agency shall consider the following:

  1. The assessment and corrections on the implementation of the operations plan;
  2. The operations plan for the next nine years;
  3. Financial conditions;
  4. The operating and services provided meets the interests and needs of the local public, and
  5. record of violation of this law and other items impacting the operations.The

Should the review results mention in the preceding Paragraph reveal that a system operator has failed to live up to the operations plan or the operations plan for the next years needs to be improved, the central regulatory agency shall notify the said operator to make corrections by written within a specified period of time. In the event that the applicant fails to do so within the specified period of time without a proper reason, the central regulatory agency shall pass the resolution to reject the application after the .review committee makes such resolution.

The review or improvement period of time mentioned in the preceding Paragraph, the central regulatory agency shall issue a temporary operation license valid for one year and shall be allowed only once.

Article 36

Once every three years, the review committee shall assess the execution of the operations plan submitted by a system operator.

Should the assessment results mentioned in the preceding Paragraph reveal that a system operator has failed to live up to the operations plan and therefore needs to be corrected, the central regulatory agency shall, in accordance with the resolution of the review committee, notify the said operator to make corrections within a specified period of time. In the event that no corrections are made, the central regulatory agency shall revoke the operating license after the review committee reaches this resolution.

Article 37

A system operator shall concurrently re-transmit programs and advertisements of legally established over-the-air television stations. The system operator shall not alter the forms, contents, and channel positions of these programs and advertisements and shall include these channels in its basic channels; however, the channel positions may be altered with approval by the central regulatory agency.

No licensing fees shall be paid for the aforementioned re-transmission, which shall not constitute copyright infringement by the system operator.
A system operator shall not broadcast the programs and advertisements of an overseas satellite broadcasting business without permission from the central regulatory agency.

Article 37-1

To protect the languages and cultures of the Hakka and indigenous peoples, the central regulatory agency may designate, as conditions require, cable radio and/or television systems to provide free of charge specific channels for broadcasting programs in Hakka and indigenous languages.

Article 38

During the transmission and processing of cable radio and/or television signals by a system operator, the radiation leakage shall not exceed the maximum amount allowed by the MOTC.

Article 39

When a system operator plans to suspend or terminate the operation of the cable radio and/or television system, it shall submit a written report to the central regulatory agency, and a copy to the local regulatory agency, three months in advance. It shall also notify its subscribers one month in advance.
The maximum period for the suspension of operations of a cable radio and/or television system mentioned in the preceding Paragraph shall be six months.

Chapter IV  Program Regulation

Article 40

The contents of the programs shall not:

Violate compulsory or prohibitive regulations under the law; 

Impair the physical or mental health of children or juveniles; or Disrupt public order or adversely affect good social customs. 

Article 41

The central regulatory agency shall establish program rating regulations. System operators shall transmit programs in accordance with the regulations.

The central regulatory agency may specify the time slots for and order encoding of the transmission of certain programs.

System operators shall report their encoding methods to the MOTC for joint review and approval with relevant central agencies.

Article 42

Programs shall maintain their completeness and be distinguishable from advertisements.

Without prior agreements, system operators shall not, on their own, combine channels or terminate transmission channels.

Programs provided by system operators and their affiliated enterprises shall not exceed 25 percent of the usable channels.

System operators shall display their system logo on the screen of the programs transmitted by the said operators.

Article 43

Domestically produced programs shall constitute no less than 20 percent of the cable radio and/or television programs.

Article 44

The regulatory agency may, if it deems necessary, request a system operator to provide a program or related materials within 15 days after the transmission of the said program.

The regulatory agency may, if it deems necessary, request a system operator to provide subscribers' programming, without change of content or form, through established connection to specific locations. For encoded program transmissions, the said system operator shall install the decoding facilities.

The locations mentioned in the preceding Paragraph shall be limited to a maximum of two.

Chapter V  Advertisement Regulation

Article 45

System operators shall concurrently transmit advertisements of channel providers. Without prior written consent from the channel providers, system operators shall not change the format or contents of such advertisements.

The duration of advertisements shall not exceed one-sixth of the total transmission time of each program.

The word "advertisement" shall be displayed on the screen, in the event that one single advertisement lasts more than three minutes or an advertisement is transmitted in the form of a program.

Advertisements shall not appear on pay-per-view programs or pay channels; however, previews of the programs on the said channels shall not be subject to this restriction.

Article 46

Channel providers shall submit annual reports regularly to the review committee, regarding the expected negotiated allocation of advertisement duration; the schedule, contents and methods of transmission; and other conditions. If a channel provider refuses without justification to negotiate with the system operator according to its report, the system operator may apply to the review committee for coordination and disposition.

Article 47

System operators may establish exclusive channels for advertisements, which shall not be subject to the restrictions set forth in Paragraph 2 of Article 45.
Limitations on the number of advertisement channels shall be established by the central regulatory agency.

Article 48

System operators shall not use inserted characters, except under the following circumstances:

To report a natural disaster or emergency; 

To publicize public service information; 

To announce a change of channel or program; 

To release non-commercial information related to the program in transmission; or 

As stipulated by other acts or regulations. 

Article 49

When the contents of an advertisement concern matters that require legal approval of the pertinent authorities, certification of approval for the said advertisement shall be obtained before it is transmitted.

Article 50

Article 40, Paragraph 2 and 3 of Article 41, Paragraph 4 of Article 42, and Article 44 shall apply to advertisements mutatis mutandis.
The criteria for advertisement production and transmission shall be established by the central regulatory agency.

Chapter VI  Fees

Article 51

System operators shall report the subscription fees to the special municipal or county/city government within one month of August 1 of each year. The fees shall be announced by the special municipal or county/city government after they have been approved according to the subscription fee standards set by the review committee.

The special municipal and county/city government may establish a fee review committee to be placed in charge of approving the abovementioned subscription fees. For special municipal or county/city governments that have not established a fee review committee, the central regulatory agency shall be in charge of approving the fees.

The accounting systems of the system operators and their standard formulas shall be established by the central regulatory agency.
System operators shall report the number of their subscribers for the previous three months in January, April, July, and October of each year to the central regulatory agency.

Article 52

A system operator may terminate program transmission to any subscriber who does not pay the subscription fee by the due date and still does not pay after being given periodic past-due notification; however, at such time of termination, the system operator shall restore the subscriber's original audio-visual reception of over-the-air television programming.

The system operator may request reimbursement for the equipment cost from the subscriber for compliance with the proviso of the preceding Paragraph.
The proviso stipulated in Paragraph 1 and the provisions of the preceding Paragraph shall also apply when legal audio-visual relationships are terminated.

Article 53

System operators shall set aside 1 percent of their annual operating revenues and submit it to the central regulatory agency for the establishment of a special fund.

The amount of money provided by the system operator, as mentioned in the preceding Paragraph, shall be used by the central regulatory agency for the following purposes:

Thirty percent shall be used by the central regulatory agency for the popularization and development of cable radio and television; 
Forty percent shall be allocated to the local governments of special municipalities or counties/cities for construction of local cultural and public facilities related to this act; and Thirty percent shall be donated to the Public Television Service Foundation.

Regulations governing the establishment, use, and management of the special fund mentioned in Paragraph 1 shall be established by the central regulatory agency. 

Article 54

The regulatory agency shall charge the applicants review and license fees for processing the applications for review, inspection, and issuance or renewal of licenses in accordance with this Act. The standards for the said fees shall be set by the central regulatory agency.

Chapter VII  Protection of Rights

Article 55

System operators shall sign written contracts with their subscribers.

The written contracts mentioned in the preceding Paragraph shall be printed on the reverse side of the receipts issued by the system operators to their subscribers.

The central regulatory agency shall publicly announce matters that should or should not be included in the standard subscription contract.

General clauses that violate the published standard contract are invalid. The validity of such standard contract shall be determined in accordance with Article 16 of the Consumer Protection Act.

The contents of the contract shall include:

Rates and restrictions on fee adjustment; 

Numbers and names of channels, and the expiration date of each channel contract; 

Restrictions on the use of subscribers' basic data; 

Conditions for the restoration of subscribers' original audio-visual reception of over-the-air television programming, and for giving compensation to subscribers whose audio-visual rights and interests are impaired, in the event that the system operator is penalized with termination of transmission, revocation of operating permit, or confiscation of facilities; 

Conditions for giving compensation to subscribers whose audio-visual rights and interests are likely to be impaired in the event that the signals of the subscribed channels are terminated without reasonable justification; 

Validity of the contract; 

Subscribers' complaint hotlines; and Other items, as designated by the central regulatory agency. 

System operators shall promptly and properly handle subscribers' complaints and shall retain the files of such complaints for three months. The regulatory agency may request system operators to respond to the subscribers in writing or in relevant programs.

Article 56

System operators shall set up an exclusive channel that will carry the system operator's name, logo, license number, telephone number of subscribers' complaint hotline, business address, a list of all channels, the license period for each channel, and the programs transmitted on each channel.

Article 57

Programs and advertisements transmitted by cable radio and/or television that involve the rights of a third party, shall not be transmitted without legal authorization.

Article 58

System operators shall not reject, without justification, requests from the local populace to pay for the visual and/or audio reception of cable radio and/or television.

Where, with justification, a system operator is unable to provide people with the reception of over-the-air television via its cable television system, the local regulatory agency may ask the review committee to provide a solution, by other means, for the reception of over-the-air television.

Article 59

When legal audio-visual relationships are terminated, system operators shall remove all related cables within one month. If the cables are not removed within the specified period of time, the owners or occupants of the land or the buildings may remove the cables and request reimbursement for the cost of dismantling and other necessary expenditures from the system operators.

Article 60

Should the regulatory agency determine that a cable radio and/or television system is inappropriately operated so as to impair, or be likely to impair, the rights and interests of the subscribers, it shall notify the said system operator to make corrections within a specified period of time or take other necessary measures.

Article 61

If an involved party considers a cable radio or television program or advertisement to be erroneous, the said party may request a correction within 15 days of its transmission. The system operator shall make the correction in the same program or advertisement in the same time slot within 15 days of receiving the request. If the system operator considers that there has been no error in the program or advertisement, it shall state its reasons in a written response to the said party.

Article 62

When a commentary in a cable radio or television program involves other individuals, institutions, or organizations to the extent that the rights and interests of the involved party are impaired, the request by the said party for a commensurate opportunity to respond shall not be rejected.

Chapter VIII  Penal Provisions

Article 63

The penalties under this Act shall be administered by the central regulatory agency; however, the penalties for violation of Paragraph 3 of Article 3 and Article 38 shall be administered by the MOTC. The penalties for violation of the provisions of the chapters on Program Regulation, Advertisement Regulation, Fees, and Protection of Rights shall be administered by the special municipal or county/city government. When special municipal or county/city governments are unable to exercise this power, the central regulatory agency may act on their behalf.

Article 64

An authorized cable radio or television operator or a system operator shall be issued a warning in the event of:

Violation of Paragraph 3 of Article 3 with relation to engineering techniques and management; 

Failure to apply for a license change or renewal in accordance with Article 28 or Paragraph 2 of Article 35; 

Failure to apply to the central regulatory agency for an operating permit within the period of time specified in Paragraph 3 of Article 31; 

Violation of Paragraph 1 of Article 37; Paragraph 1 or 3 of Article 41; Paragraph 1, 2, or 4 of Article 42; Article 43, 45, or 48; or Paragraph 1 of Article 50, to which Paragraph 3 of Article 41 and Paragraph 4 of Article 42 shall apply mutatis mutandis; 

Violation of Paragraph 1 or 4 of Article 51, the proviso of Paragraph 1 or the provisions of Paragraph 3 of Article 52; or 

Violation of Article 55, 56, 58, 61, or 62. 

Article 65

System operators who violate Article 38 shall be fined an amount from NT$20,000 up to NT$200,000, and shall be notified to make corrections immediately. The fine may be imposed consecutively for failure to make corrections.
Should the radiation leakage be so serious as to jeopardize aviation safety or adversely affect important communication systems, the central regulatory agency may, in accordance with a notification from the MOTC, order the system operator to cease transmission until the situation has been rectified.

Article 66

An authorized cable radio or television operator or a system operator shall be fined an amount from NT$50,000 up to NT$500,000, and shall be notified to make corrections within a specified period of time, in the event that:

It makes no correction after receiving a warning issued in accordance with Article 64; 

It lays or suspends from poles cable networks without obtaining a permit in accordance with Paragraph 1 of Article 5; 

It ignores a notice made by the regulatory agency in accordance with Paragraph 1 or 2 of Article 7 to cease transmission, to transmit specific programs, or to revert to transmission of regular programming; 

It makes no correction within a specified period of time as notified by the central regulatory agency in accordance with Paragraph 2 of Article 36; 

It violates Paragraph 3 of Article 37, or Article 39; 

It violates Article 40 or 49, or Paragraph 1 of Article 50, to which Article 40 shall apply mutatis mutandis; 

It fails to make transmissions in accordance with the time slots and methods of transmission specified in Paragraph 2 of Article 41, and Paragraph 1 of Article 50, to which Paragraph 2 of Article 41 shall apply mutatis mutandis; 

It refuses to make an installation at a location designated by the regulatory agency in accordance with Paragraph 2 of Article 44 and Paragraph 1 of Article 50, to which Paragraph 2 of Article 44 shall apply mutatis mutandis; 

It violates Article 57; or It makes no corrections or fails to take other necessary measures in accordance with Article 60. 

Article 67

Under any of the following circumstances, an authorized cable radio or television operator or a system operator shall be fined an amount from NT$100,000 up to NT$1,000,000, and shall be notified to make corrections within a specified period of time. The fine may be imposed consecutively for failure to make the corrections.

Any of the situations enumerated in Article 64 and 66, after being penalized twice under this Act within a year; 
Refusal to provide data in accordance with Paragraph 1 of Article 44, or Paragraph 1 of Article 50, to which Paragraph 1 of Article 44 shall apply mutatis mutandis; or provision of false material; or Violation of Paragraph 2 of Article 73. 

A system operator may be also penalized with a suspension of transmission from three days up to three months for violation of Item 1 of the preceding Paragraph.

Article 68

Under any of the following circumstances, an authorized cable radio or television operator or a system operator shall be fined an amount from NT$100,000 up to NT$1,000,000, and shall be notified to make corrections within a specified period of time. The fine may be imposed consecutively for failure to make corrections. Where the violation is serious, permission for establishment or operation may be revoked, and the permit and license canceled.

Involved in any of the situations enumerated in Paragraph 1 of Article 21; 

Involved in any of the situations enumerated in Subparagraph 1, 4, or 5 of Article 24; 

Changing the contents of the application or the operations plan without applying and obtaining approval in accordance with Paragraph 1 of Article 26; 
Proceeding with establishment or making changes in the registration without obtaining permission from the central regulatory agency in accordance with Paragraph 2 or 3 of Article 26; 

Commencing operations without having received an operating permit from the central regulatory agency in accordance with Paragraph 3 of Article 31; 

Violating Paragraph 4 of Article 31; 

Failing to provide channels and broadcast programs as designated by the central regulatory agency in accordance with Article 37-1; 

Violating Paragraph 3 of Article 42; 

Violating Paragraph 1 of Article 53; or Broadcasting programs or advertisements during the period when a suspension of transmission has been ordered. 
The methods of correction within a specified period of time referred to in the preceding Paragraph shall be as follows:

Disposition of all or part of the shares; 

Transferring of all or part of the business; 

Termination of an individual's official duties; or 

Other necessary methods. 

Article 69

An authorized cable radio or television operator or a system operator shall have its establishment or operating license revoked and the relevant permits canceled in the event of:

Use of illegal means to obtain the establishment permit or operating license; 

Violation of the provisions of this Act after having been penalized with suspension of transmission three times within one year; 

Revocation of an establishment registration by the issuing authority; 

Violation of Article 29; 

Violation of Article 30 by failing to complete the system installation within the specified period of time; 

Violation of Article 34; or Refusal to comply with the order to cease transmission issued in accordance with Paragraph 2 of Article 65. 

Article 70

Anyone who operates a cable radio or television business without legally obtaining an establishment permit, or when the establishment permit or operating license is revoked, shall be fined an amount from NT$200,000 up to NT$2,000,000. The fine may be imposed consecutively for each additional violation.
The equipment of the cable radio and/or television business referred to in the preceding Paragraph shall be confiscated without regard of its ownership.

Article 71

Fines imposed in accordance with this Act shall be paid within the specified period of time. Those who fail to do so shall be referred to the court for compulsory enforcement.

Chapter IX  Supplementary Provisions

Article 72

Cable television program transmission systems that have been installed without completing legal procedures before the implementation of this Act may, after this Act is implemented, continue to operate after obtaining a registration certificate from the central regulatory agency.

Within 15 days of the commencement of program transmission by a system operator, the program transmission systems in that service area referred to in the preceding Paragraph shall cease transmission; the service area indicated on the original registration certificate of the program transmission system shall become void. Those who continue their transmission shall be penalized in accordance with Article 70; however, this provision shall not apply to those program transmission systems which have obtained permission from the central regulatory agency to continue transmission.

The rules governing matters regarding the issuance and revocation of the registration certification and the operation of the cable television transmission systems and the conditions and time periods for the continuance of operation under the preceding Paragraph, shall be formulated separately by the central regulatory agency.

The provisions of this Act concerning program regulation, advertisement regulation, fees, and the protection of rights shall apply to cable television transmission systems mutatis mutandis. Violators shall be penalized in accordance with this Act.

Item 2 of Article 25 and Article 53 shall not apply to a cable television transmission system which continues to operate in accordance with the proviso of Paragraph 2 of this Article, in a service area where cable programming is transmitted by a system operator.

Article 73

The regulatory agency may dispatch personnel with identity documents to inspect a system and may ask the authorized cable or television operator or system operator to provide reports or materials or to take coordinating measures with regard to the facilities or other related matters regulated by this Act. The regulatory agency may impound materials or items which are found to be in violation of this Act.

No person shall evade, obstruct, or refuse requests, inspection, or impoundment which are carried out in accordance with the preceding Paragraph.
Disposal of the materials or items which have been impounded in accordance with Paragraph 1 shall be decided by the central regulatory agency. Where the matter involves criminal liabilities, the disposition shall be handled in accordance with relevant acts.

Article 74

A person who intercepts or receives content transmitted by a system without the agreement of the system operator, shall pay the basic subscription fee. Where such activity causes loss to the system, such person shall be liable for civil damages compensation.

In the event that the time period of unauthorized reception cannot be proven, the fees referred to in the preceding Paragraph shall be calculated as two years of the basic rate.

Article 75

The Enforcement Rules for this Act shall be established by the central regulatory agency.

Article 76

This Act shall take effect from the date of promulgation.