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


In the Matter of                )       File No. EB-02-PA-013    
                                )       
Networx Corporation             )       NAL/Acct.             No. 
200232400008
                                )       
Pittsford, New York             )       FRN: 0006-0222-97


           NOTICE OF APPARENT LIABILITY FOR FORFEITURE

                                        Released: August 15, 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 has apparently violated 
Section 301 of the Communications Act of 1934, (the ``Act''),  as 
amended.1   The  violation  occurred  as  a  result  of   Networx 
Corporation's  (``Networx'')  operation  of  four  FM   broadcast 
stations on the frequencies  98.9 MHz, 102.9  MHz, 103.9 MHz  and 
106.3 MHz at  the Presbyterian Senior  Center, 1215 Hulton  Road, 
Oakmont,  Pennsylvania  without  a  license.   We  conclude  that 
Networx is apparently liable  for a forfeiture  in the amount  of 
$10,000. 

                         II.  BACKGROUND

     2.   By letter  dated December  27, 2001,  the  Philadelphia 
Office received a  complaint from  a local  resident of  Oakmont, 
Pennsylvania alleging that a  broadcast station was operating  on 
the frequency  103.9 MHz  at the  Presbyterian Senior  Center  in 
Oakmont, Pennsylvania.   The complainant  also alleged  that  the 
broadcast station was causing harmful co-channel interference  to 
the reception  of  licensed  broadcast station  WLSW(FM)  at  his 
residence.

     3.   On January 12, 2002,  the Philadelphia Office  assigned 
FCC Agents David Dombrowski and Frank Cranmer to investigate  the 
complaint.   The  agents  used  direction-finding  techniques  to 
locate the source of the transmissions on the frequency 103.9 MHz 
to the  Presbyterian Senior  Center, 1215  Hulton Road,  Oakmont, 
Pennsylvania.  The agents first  detected the transmissions  from 
the station  with  a  standard  car  radio  at  the  Pennsylvania 
Turnpike Interchange  5 which  is more  than 0.75  mile from  the 
Presbyterian  Senior  Center.   During   an  inspection  of   the 
broadcast station, a maintenance department employee informed the 
agents that the  Presbyterian Senior Center  subscribed to an  FM 
broadcast service on the frequencies  98.9 MHz, 102.9 MHz,  103.9 
MHz and 106.3 MHz called ``Companion Radio.''  Networx  installed 
and operated the  four broadcast systems  at different  locations 
throughout the  Presbyterian  Senior  Center  to  provide  signal 
coverage.  The broadcast stations were located in Room 4601, Room 
053, the Tower Stairs on  the third floor, and  in a closet of  a 
rear building.  At each of  the four locations, Networx  operated 
broadcast station  transmitters on  the  four frequencies  for  a 
total of 16 stations.     

     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 Section 15.239  of 
the Commission's Rules  (``Rules'').2  This  section limits  such 
transmitters to the field strength of  250 mV/m at a distance  of 
three meters from the transmitting antenna.  If a station exceeds 
the limits specified  in Section  15.239 of the  Rules, then  the 
operator must obtain a license prior to operating the station.   

     5.   On January  12,  2002,  the agents  used  a  calibrated 
Potomac FIM-71 Field  Strength Meter to  conduct measurements  of 
the signals from  the broadcast stations.   The agents  conducted 
their measurements at the intersection of 12th Street and  Hulton 
Road at a distance of over  300 feet from the station located  in 
Room 053  of the  Presbyterian Senior  Center.  The  measurements 
indicated field strengths of 976 mV/m on the frequency 98.9  MHz, 
1,135 mV/m on the frequency 102.9 MHz, 972 mV/m on the  frequency 
103.9 MHz and 1,056 mV/m on the frequency 106.3 MHz.  The  agents 
used extrapolation  to  calculate  the field  strength  at  three 
meters  from  the   broadcast  stations  in   Room  053  of   the 
Presbyterian Senior Center.  The broadcast stations exceeded  the 
permissible level  for a  non-licensed radio  transmitter by  119 
times on the frequency 98.9 MHz, 138 times on the frequency 102.9 
MHz, 119 times on  the frequency 103.9 MHz  and 129 times on  the 
frequency 106.3 MHz.  Accordingly, a license was required for the 
operation of the broadcast  stations.  Based on the  Commission's 
records, no license had been issued  for the operation of any  FM 
broadcast station at this location.  Thus, Networx was  operating 
the stations without a license, in violation of 47 U.S.C.  301.

     6.   On January 22, 2002, the Philadelphia Office sent,  via 
certified    mail,    a     letter    addressed    to     Networx 
Corporation/Companion Radio, 1 Fishers Road, Pittsford, New  York 
14534.  The letter  warned the  addressee that  operation of  the 
unlicensed radio stations on the frequencies 98.9 MHz, 102.9 MHz, 
103.9 MHz  and  106.3  MHz at  the  Presbyterian  Senior  Center, 
violated Section 301 of the Act; outlined the potential penalties 
for operating the unlicensed stations in violation of Section 301 
of the  Act,  including  seizure  of  the  equipment,  fines  and 
imprisonment;  and  directed  the  operator  of  the  station  to 
terminate operation of the unlicensed stations immediately.   The 
Philadelphia Office requested Networx  submit a written  response 
within 10 days of receipt of the letter.

     7.   By letter  dated  February  1,  2002,  Ken  Unger,  the 
President of Networx,  submitted a response  to the  Philadelphia 
Office.   He  acknowledged  that  they  operated  four  broadcast 
systems  at  the  Presbyterian  Senior  Center,  each  of   which 
transmitted on the frequencies 98.9 MHz, 102.9 MHz, 103.9 MHz and 
106.3 MHz.  He stated that  based on field strength  measurements 
that it conducted on January 23, 2002, it does appear that one or 
more transmitters were  generating field strengths  in excess  of 
the maximum  allowed.  He  stated that  they had  already  ceased 
operation of all the stations at the Presbyterian Senior  Center.  
He also  stated  that  they  would place  the  stations  back  in 
operation only after appropriate  measurements have been made  on 
each  transmitter  individually   and  modifications  have   been 
implemented to  reduce the  field strength  of any  non-compliant 
transmitter to the parameters specified in Section 15.239 of  the 
Rules.  

                           III.  DISCUSSION

     8.   Section 301 of the Act prohibits any person from  using 
or operating  any apparatus  for the  transmission of  energy  or 
communications or signals by radio except under and in accordance 
with the Act and with a license in that behalf granted under  the 
provisions of the  Act.  On  January 12,  2002, Networx  operated 
four FM broadcast  stations on  the frequencies  98.9 MHz,  102.9 
MHz, 103.9 MHz  and 106.3  MHz in  Room 053  of the  Presbyterian 
Senior Center without  a license.   Networx would  not have  been 
required to  obtain a  license  to operate  the stations  if  the 
signal strengths  did  not exceed  the  FCC limits  specified  in 
Section 15.239 of the Rules.   However, on January 12, 2002,  the 
agents measured  that  the  signal  strengths  of  the  broadcast 
stations exceeded the FCC limits by at least 119 times. 
 
     9.   By letter  dated  October 30,  2000,  the  Philadelphia 
Office warned Networx that its  operation of a broadcast  station 
at the Dunwoody Village in Newtown Square, Pennsylvania without a 
license was in violation of Section  301 of the Act.  The  agents 
found that  the  station at  the  Dunwoody Village  exceeded  the 
limits specified in Section 15.239  of the Rules and Networx  did 
not have a  license to operate  the station.  Therefore,  Networx 
was aware  prior to  January 12,  2002 of  its responsibility  to 
properly measure,  adjust  and  maintain  all  of  its  broadcast 
stations to avoid  subsequent violations  of Section  301 of  the 
Act. 

     10.  Based on the evidence before  us, we find that  Networx 
apparently willfully3 and repeatedly4 violated Section 301 of the 
Act.  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'')5, sets the  base 
forfeiture  amount  for  unlicensed  operation  at  $10,000.   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,6 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 
Forfeiture 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

     11.  Accordingly, IT IS  ORDERED THAT,  pursuant to  Section 
503(b) of the  Act7 and  Sections 0.111,  0.311 and  1.80 of  the 
Rules8 Networx is hereby NOTIFIED of its APPARENT LIABILITY FOR A 
FORFEITURE in the  amount of ten  thousand dollars ($10,000)  for 
willfully and repeatedly violating Section 301 of the Act.   

     12.  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.

     13.  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. 200232400008, and FRN 0006-0222-97. 

     14.  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. 200232400008. 

     15.  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.

     16.  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. 20554.9

     17.  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 Section 312(f)(2), which also applies to Section 503(b), 
provides:  [t]he term ``repeated'', when used with reference to 
the commission or omission of any act, means the commission or 
omission of such act more than once or, if such commission or 
omission is continuous, for more than one day.

5 47 C.F.R.  1.80.
6
 47 U.S.C  503(b)(2)(D).

7 47 U.S.C.  503(b).

8 47 C.F.R.  0.111 and 0.311.

9 See 47 C.F.R.  1.1914.