Structure and format

Given that there are two distinct categories of common elements, the most logical format for licence agreements is in two parts.

The first part (labelled Part A in the attached draft licence agreement template — Appendix 1), contains elements that are identical or near identical for all licences. They include:

• definitions of terms used in the first part of the agreement;
• requirements to comply with the licence agreement's terms and conditions;
• requirements to comply with broadcasting codes of practice;
• implementation (use or lose) conditions;
• requirements to maintain verifiable records;
• annual reporting requirements;
• complaints mechanisms;
• audit by the managing agency; and
• enforcement mechanisms available to the managing agency.
   

The second part (labelled Part B in Appendix 1) contains elements that are unique to the particular class of licence. They include:

• definitions of terms used in the second part of the agreement;
• the licence type [eg, non-commercial, Māori, local commercial FM];
• the period of tenure of the licence agreement (normally the life of the associated licence) and its renewal conditions;
• the Government's policy statement in respect of the licence type;
• governance requirements — who may own, control and operate the licence;
• permitted sources of revenue for the broadcasting operation; and
• type, duration and quality of broadcast content.
   

It is noted that not all sections of Part B will apply to all licences — for example, there would be no conditions governing revenue sources in local commercial FM broadcasting licence agreements.

The main elements are considered individually in the following sections.