The National Communications Commission (NCC) has proposed an amendment that would mean channels and cable system operators would have to settle their disputes over content authorization fees through mediation and arbitration procedures stipulated by the commission, it said yesterday.
Channels or cable systems suspending broadcasts without a legitimate reason while still involved in mediation or arbitration procedures would be fined NT$100,000 to NT$2 million (US$3,517 to US$70,336), the commission said.
The commission proposed the procedures in light of rising disputes in the past few years between channels and cable system operators over content authorization fees, which cable operators pay to channels.
Photo: Yang Mien-chieh, Taipei Times
From 2018 to this year, the commission handled 61 arbitration cases, commission data showed.
Disputes arose when both sides had trouble settling on a reasonable amount, and they would often seek an arbitration from the commission first, it said.
However, arbitration organized by the commission was often time-consuming and had limited success. Channels and cable operators often threatened to terminate broadcasts, and would not be fined if they actually did so.
The commission then proposed amending the Cable Radio and Television Act (有線廣播電視法) by specifying that disputes between channel and cable operators would be handled in two stages, and holding them accountable if they suspended broadcasts while still in mediation or arbitration.
NCC Vice Chairman and spokesman Wong Po-tsung (翁柏宗) said that cable operators and channels would first seek to settle issues through mediation by the commission.
Should they fail to reach an agreement, they could settle the dispute through a civil lawsuit, change their business plans or enter the arbitration stage, he said.
Those seeking arbitration would have to file a request within 30 days after mediation procedures are completed, Wong said, adding that the commission could reject requests or agree to review them.
The commission would form an arbitration committee to review requests, Wong said.
The committee would be made up of two to three government officials or four to five experts in finance, law or media, the commission said, adding that the commission would be in charge of recruiting the committee members.
The committee would decide on a temporary fee that cable operators should pay to channels. If any of the parties in a dispute refuse to accept the result of the arbitration, they are entitled to seek judicial recourse through administrative courts, the commission said.
Two-phase procedures could take a maximum of nine months to complete, the commission said.
Channels and cable operators could file civil lawsuits while they are in mediation or arbitration, the commission said, adding that it would deem the rulings of the civil lawsuits as the final decision.
The commission would hold a hearing on the amendment, which must be reviewed by the Executive Yuan and Legislative Yuan, it added.
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