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                           Before the
                Federal Communications Commission
                     Washington, D.C. 20554


                                )
In the Matter of                )       File No. EB-01-PA-238
                                )
Networx Corporation             )       NAL/Acct.             No. 

200232400001
1 Fishers Road                  )
Pittsford, New York  14534      )       FRN # 0006-0222-97
          

           NOTICE OF APPARENT LIABILITY FOR FORFEITURE

                                             Released:  January 
               10, 2002

By the District Director, Philadelphia Office, Enforcement 
Bureau:

                        I.  INTRODUCTION

     1.   In this  Notice of  Apparent Liability  for  Forfeiture 
(``NAL''), we  find that  Networx Corporation  (``Networx'')  has 
apparently violated  Section 301  of  the Communications  Act  of 
1934, as amended,1  (``the Act'') by  operating an unlicensed  FM 
broadcast station on  the frequency  94.5 MHz  at the  Cumberland 
Crossings Retirement  Community  in Carlisle,  Pennsylvania.   We 
conclude that Networx is apparently liable for forfeiture in  the 
amount of ten thousand dollars ($10,000).

                         II.  BACKGROUND

     2.   On or about October 19, 2000, the Enforcement  Bureau's 
Philadelphia Office received information  from the engineer of  a 
local radio station that an  unlicensed FM broadcast station  was 
allegedly operating in the  Newtown Square, Pennsylvania area  on 
the frequency 105.7 MHz. 

     3.   On that same  day, FCC  agent David  Dombrowski of  the 
Philadelphia Office used direction  finding techniques to  locate 
the source of the transmissions on the frequency 105.7 MHz to the 
Dunwoody  Village,  3500  West  Chester  Pike,  Newtown   Square, 
Pennsylvania  19073.    The   FCC   agent   observed   that   the 
transmissions from the station could be detected with a  standard 
car radio  approximately  0.5  mile from  the  Dunwoody  Village.  
Nancy  Morrison,   the  Recreation   Director,  permitted   agent 
Dombrowski to inspect the  FM broadcast station.  Nancy  Morrison 
explained that the Dunwoody Village subscribes to an FM broadcast 
service on the  frequency 105.7 MHz  called ``Companion  Radio.''  
Networx Corporation  installed  and  operates  the  FM  broadcast 
station equipment at the Dunwoody Village to provide the service.  

     4.   Radio  stations  in  the   FM  broadcast  band,   i.e., 
broadcast stations that  transmit on a  frequency between 88  and 
108 MHz, must be licensed by the FCC (47 U.S.C. 301).  The only 
exception to this licensing requirement in the FM broadcast  band 
is  for   certain  non-licensed   low-power  radio   transmitters 
operating  at  a  power  level  that  complies  with  47   C.F.R. 
15.239.2  This section  limits such transmitters  to the  field 
strength of  250 mV/m  at a  distance of  three meters  from  the 
transmitting antenna.   On  October 23,  2000,  Agent  Dombrowski 
returned to Dunwoody Village and used a calibrated Potomac FIM-71 
Field Strength  Meter  to make  a  measurement of  the  station's 
signal at a distance of 100 feet from the antenna.  The FCC agent 
measured a field strength  of 1,785 mV/m  on the frequency  105.7 
MHz.  The FCC  agent used extrapolation  to calculate the  signal 
strength at three meters from  the station's antenna.  The  agent 
determined that  the station's  signal exceeded  the  permissible 
level  for  a  non-licensed   radio  transmitter  by  73   times.  
Accordingly, a  license  is required  for  the operation  of  the 
station.  Based on the Commission's records, no license has  been 
issued for  the operation  of  an FM  broadcast station  at  this 
location.  Thus,  the  station  was  operating  in  violation  of 
Section 301 of the Act.

     5.   On October  30,  2000,  the  Philadelphia  Office  sent 
Networx a  letter warning  that operation  of the  unlicensed  FM 
broadcast station  on the  frequency 105.7  MHz at  the  Dunwoody 
Village violated Section 301 of  the Act; outlined the  potential 
penalties for operating  the unlicensed station  in violation  of 
Section 301 of the Act, including seizure of the equipment, fines 
and imprisonment; and directed Networx to terminate operation  of 
the unlicensed  station  immediately.   The  Philadelphia  Office 
requested Networx Corporation to submit a written response within 
10 days of receipt of the letter.

     6.   By letter  dated  November  9,  2000,  Ken  Unger,  the 
President of  Networx Corporation,  submitted a  response to  the 
Philadelphia Office.  Networx  Corporation acknowledged that  all 
equipment utilized in its  installations remains the property  of 
and is  exclusively maintained  by Networx  Corporation.  Networx 
Corporation explained  that it  intended that  its  installations 
comply with  the field  strength limits  specified under  Section 
15.239 of the  Rules.  Networx  Corporation did  not dispute  the 
field strength measurements made  by the Philadelphia Office  and 
stated that  the  Potomac  Model  FIM-71  is  substantially  more 
accurate than  the  equipment  Networx  Corporation  utilized  to 
determine compliance.   Networx Corporation  stated that  it  had 
ceased operation  of the  FM broadcast  station at  the  Dunwoody 
Village on  or  about  October  25,  2000.   Networx  Corporation 
assured that  it  would purchase  a  Potomac Model  FIM-71  Field 
Strength Meter to conduct more accurate measurements and  confirm 
that its facilities are operated  within the limits specified  in 
47 C.F.R.  15.239.

     7.   On August 22,  2001, the  Philadelphia Office  received 
information from  the  engineer  of radio  station  WDAC  that  a 
station was causing harmful interference to the reception of WDAC 
on  the  frequency  94.5  MHz  in  Carlisle,  Pennsylvania.   The 
offending station was identifying itself as ``Companion  Radio.''  
A listener  of  WDAC who  lives  on Strayer  Drive  in  Carlisle, 
Pennsylvania informed  the Philadelphia  Office that  ``Companion 
Radio'' completely  wipes  out  the  reception  of  WDAC  at  her 
residence.

     8.   On August 23, 2001, FCC agents Trent Williams and David 
Dombrowski used direction-finding techniques to locate the source 
of the  broadcasts  on  94.5  MHz  to  the  Cumberland  Crossings 
Retirement Community,  1  Longsdorf Way,  Carlisle,  Pennsylvania 
17013.  Kathleen Bolden, the Director of Personal Care, permitted 
the FCC agents to inspect the station.  Kathleen Bolden explained 
that Cumberland Crossings Retirement  Community subscribes to  an 
FM broadcast service on the frequency 94.5 MHz called ``Companion 
Radio.''  Networx Corporation  installed and  operates the  radio 
equipment at  the Cumberland  Crossings Retirement  Community  to 
provide the service.
     9.   Subsequently, agent Dombrowski and agent Williams  used 
a  calibrated  Potomac  FIM-71  Field  Strength  Meter  to   make 
measurements of the station's  signal at a  distance of 105  feet 
from the antenna.  The FCC  agents measured a  field strength  of 
8,841 mV/m  on  the frequency  94.5  MHz.  The  FCC  agents  used 
extrapolation to calculate  the signal strength  at three  meters 
from the  station's  antenna.   The agents  determined  that  the 
station's signal  exceeded  the  permissible  level  for  a  non-
licensed radio transmitter by  377 times. Accordingly, a  license 
is required  for the  operation  of the  station.  Based  on  the 
Commission's  records,  no  license  has  been  issued  for   the 
operation of an FM broadcast station at this location.  Thus, the 
station was operating in violation of 47 U.S.C. 301. 

                        III.  DISCUSSION

     10.  Section  301  of  the  Act  prohibits  radio  operation 
``except under and in accordance with this Act and with a license 
in that behalf granted  under the provisions  of this Act.''   As 
explained above, Networx  Corporation operated  an unlicensed  FM 
broadcast  station   at  the   Cumberland  Crossings   Retirement 
Community  after  the  Philadelphia  Office  had  warned  Networx 
Corporation in writing  that the  operation of  its FM  broadcast 
station at the Dunwoody Village  was in violation of Section  301 
of the Act. 

     11.  Based on the evidence before  us, we find that  Networx 
Corporation has willfully3  violated Section 301  of the Act,  as 
amended, by  operating an  unlicensed station  at the  Cumberland 
Crossings  Retirement  Community  in  Carlisle,  Pennsylvania  on 
August 23, 2001.   The Commission's  Forfeiture Policy  Statement 
and Amendment of  Section 1.80  of the Rules  to Incorporate  the 
Forfeiture Guidelines,  12 FCC  Rcd 17087,  17113 (1997),  recon. 
denied, 15 FCC Rcd 303(1999) (``Forfeiture Policy  Statement'')4, 
sets the base forfeiture amount at ten thousand dollars ($10,000) 
for the operation  of an  unlicensed station.   In assessing  the 
monetary  forfeiture  amount,  we  must  take  into  account  the 
statutory factors set forth in Section 503(b)(2)(D) of the  Act,5 
which include the nature,  circumstances, extent, and gravity  of 
the violation, and with  respect to the  violator, the degree  of 
culpability, any history of prior  offenses, ability to pay,  and 
other such matters as justice  may require.  Applying the  Policy 
Statement and  the  statutory factors  to  the instant  case  and 
applying  the  inflation  adjustments,  we  believe  that  a  ten 
thousand dollar ($10,000) monetary forfeiture is warranted.

                      IV.  ORDERING CLAUSES

     12.  Accordingly, IT IS  ORDERED THAT,  pursuant to  Section 
503(b) of the  Act, and  Sections 0.111,  0.311 and  1.80 of  the 
Rules,6 Networx Corporation  is hereby NOTIFIED  of its  APPARENT 
LIABILITY FOR A FORFEITURE in the amount of ten thousand  dollars 
($10,000) for  operating  unlicensed  stations  in  violation  of 
Section 301 of the Act. 

     13.  IT IS FURTHER ORDERED THAT, pursuant to Section 1.80 of 
the Rules, within thirty days of the release date of this  NOTICE 
OF APPARENT  LIABILITY, Networx  Corporation SHALL  PAY the  full 
amount of  the  proposed  forfeiture  or  SHALL  FILE  a  written 
statement seeking  reduction  or  cancellation  of  the  proposed 
forfeiture.

     14.  Payment of  the forfeiture  may be  made by  mailing  a 
check or similar instrument, payable to the order of the  Federal 
Communications Commission, to the Forfeiture Collection  Section, 
Finance  Branch,  Federal  Communications  Commission,  P.O.  Box 
73482, Chicago, Illinois 60673-7482.  The payment should note the 
NAL/Acct. No. 200232400001 and FRN # 0006-0222-97.  

     15.  The  response,  if  any,  must  be  mailed  to  Federal 
Communications  Commission,  Enforcement  Bureau,  Technical  and 
Public Safety Division, 445  12th Street, S.W., Washington,  D.C. 
20554 and MUST INCLUDE THE NAL/Acct. No. 200232400001. 

     16.  The Commission will not consider reducing or  canceling 
a forfeiture in response  to a claim of  inability to pay  unless 
the petitioner  submits: (1)  federal tax  returns for  the  most 
recent  three-year  period;  (2)  financial  statements  prepared 
according to generally accepted accounting practices  (``GAAP''); 
or (3)  some  other  reliable and  objective  documentation  that 
accurately reflects  the petitioner's  current financial  status.  
Any claim  of inability  to pay  must specifically  identify  the 
basis for the claim by  reference to the financial  documentation 
submitted.

     17.  Requests for payment of the full amount of this  Notice 
of Apparent Liability  under an installment  plan should be  sent 
to: Chief,  Revenue and  Receivables Operations  Group, 445  12th 
Street, S.W., Washington, D.C. 20554.7

     18.  IT IS FURTHER  ORDERED THAT  a copy of  this NOTICE  OF 
APPARENT LIABILITY  shall  be  sent  by  Certified  Mail,  Return 
Receipt  Requested,  to  Networx  Corporation,  1  Fishers  Road, 
Pittsford, New York 14534.  


                                   FEDERAL         COMMUNICATIONS 
COMMISSION




                                   John E. Rahtes
                                   District Director
                                   Philadelphia Office


_________________________

1 47 U.S.C.  301.

2  47 C.F.R.  15.239.
3  Section 312(f)(1) of the Act, 47 U.S.C.  312(f)(1), which 
applies to Section 503(b) of the Act, provides that ``[t]he term 
`willful', when used with reference to the commission or omission 
of any act, means the conscious and deliberate commission or 
omission of such act, irrespective of any intent to violate any 
provision of this Act ....''  See Southern California 
Broadcasting Co., 6 FCC Rcd 4387 (1991).

4  47 C.F.R.  1.80.
5
  47 U.S.C.  503(b).

6  47 C.F.R.  0.111, 0.311, and 1.80.

7  See 47 C.F.R.  1.1914.