GR 38954; (August, 1933) (Digest)
G.R. No. 38954 ; August 17, 1933
I. BECK, INCORPORATED, plaintiff-appellant, vs. VICTOR ALFONSO, as City Treasurer of Manila, defendant-appellee.
FACTS
I. Beck, Incorporated operated a radio broadcasting station, KZIB, in Manila. During its broadcasts, it allowed business concerns, for compensation, to use the station at intervals to present programs and advertise their businesses. The company did not solicit advertisements; entities could request to use the station, subject to acceptance by Beck. The City of Manila, under its charter and ordinances, required advertising agents to obtain a license and pay an annual fee. The City Treasurer compelled Beck to pay the license fee, treating its broadcasting station as an advertising agency. Beck paid under protest and sued for recovery, arguing it was not engaged in the business of an advertising agent.
ISSUE
Whether a radio broadcasting station that accepts paid advertisements, but does not solicit them, is engaged in the business of an advertising agent under Manila’s ordinances, thereby requiring it to secure a license and pay the corresponding fee.
RULING
No. The Supreme Court reversed the trial court, holding that the City of Manila could not compel Beck to obtain a license as an advertising agent. The ordinance imposed the license fee on “the business or calling of an advertising agent,” not on advertising itself or the instrumentality used. An advertising agent actively solicits advertisements, prepares copy, and disseminates it through various media. In contrast, a radio station, like a newspaper, merely sells time (or space) for advertisements; it does not thereby become an advertising agent. The Court noted that newspapers selling advertising space are not considered advertising agents, and the same principle applies to radio stations. The Insular Law regulating radio stations also did not classify them as advertising agents. Thus, Beck was not engaged in the business of an advertising agent and was not subject to the license fee. The City was ordered to return the amount paid, with interest and costs.
AI Generated by Armztrong.