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Federal Communications Commission
Washington, D.C. 20554
In the Matter of File No. EB-06-SE-274
Applied Wireless Identifications NAL/Acct. No. 200632100018
Group, Inc. )
FRN # 0012350286
Adopted: July 31, 2006 Released: August 1, 2006
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau and Applied Wireless Identifications
Group, Inc. ("AWID"). The Consent Decree terminates an investigation
initiated by the Enforcement Bureau into whether certain radio
frequency identification ("RFID") devices imported and marketed in the
United States by AWID comply with the requirements of Section 302(b)
of the Communications Act of 1934, as amended, ("Act") and Parts 2 and
15 of the Commission's Rules ("Rules").
2. The Enforcement Bureau and AWID have negotiated the terms of a Consent
Decree that would resolve this matter and terminate the investigation.
A copy of the Consent Decree is attached hereto and incorporated by
3. Based on the record before us, we conclude that no substantial or
material questions of fact exist with respect to this matter as to
whether AWID possesses the basic qualifications, including those
related to character, to hold or obtain any FCC license or
4. After reviewing the terms of the Consent Decree, we find that the
public interest will be served by adopting the Consent Decree and
terminating the investigation.
5. Accordingly, IT IS ORDERED that, pursuant to Section 4(i) of the Act,
and Sections 0.111 and 0.311 of the Rules, the Consent Decree attached
to this Order IS ADOPTED.
6. IT IS FURTHER ORDERED that the Enforcement Bureau's investigation IS
7. IT IS FURTHER ORDERED that AWID shall make its voluntary contribution
to the United States Treasury, as specified in the Consent Decree, by
credit card through the Commission's Debt and Credit Management Center
at (202) 418-1995, or by mailing a check or similar instrument,
payable to the order of the Federal Communications Commission, to the
Federal Communications Commission, P.O. Box 358340, Pittsburgh, PA
15251-8340. Payment by overnight mail may be sent to Mellon Bank/LB
358340, 500 Ross Street, Room 1540670, Pittsburgh, PA 15251. Payment
by wire transfer may be made to ABA Number 043000261, receiving bank
Mellon Bank, and account number 911-6106.
8. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
shall be sent by first class mail and certified mail, return receipt
requested, to Larry Kellam, Chairman and CEO, Applied Wireless
Identifications Group, Inc., 18300 Sutter Blvd., Morgan Hill, CA
95037, and to David H. Solomon, Esq., Wilkinson Barker Knauer, LLP,
2300 N Street, NW, Suite 700, Washington, DC 20037.
FEDERAL COMMUNICATIONS COMMISSION
Kris Anne Monteith
Chief, Enforcement Bureau
The Enforcement Bureau ("Bureau") of the Federal Communications Commission
("Commission") and Applied Wireless Identifications Group, Inc. ("AWID")
hereby enter into this Consent Decree for the purpose of terminating the
Bureau's investigation into whether certain radiofrequency identification
("RFID") devices imported and marketed in the United States by AWID comply
with the requirements of Section 302(b) of the Communications Act of 1934,
as amended ("Act"), and Parts 2 and 15 of the Commission's Rules
1. Under Parts 2 and 15 of the Rules, certain RFID devices must be
authorized in accordance with the Commission's rules and comply with
all applicable technical standards and labeling requirements prior to
importation or marketing in the United States. In April 2006, AWID
voluntarily disclosed to Bureau and Office of Engineering and
Technology ("OET") staff that it had recently discovered issues
regarding AWID's compliance with Parts 2 and 15 with respect to some
of its RFID products. On June 23, 2006, AWID met with Bureau and OET
staff and provided additional information regarding its compliance
with Parts 2 and 15 of the Rules.
2. For the purposes of this Consent Decree, the following definitions
(a) "Commission" and "FCC" mean the Federal Communications Commission.
(b) "Bureau" means the Enforcement Bureau of the Federal Communications
(c) "AWID" means Applied Wireless Identifications Group, Inc., its
subsidiaries, affiliates and any successors or assigns.
(d) "Parties" means AWID and the Bureau.
(e) "Adopting Order" means an order of the Bureau adopting the terms and
conditions of this Consent Decree.
(f) "Effective Date" means the date on which the Bureau releases the
(g) "Investigation" means the Bureau investigation commenced by AWID's
disclosure to the Bureau of issues regarding AWID's compliance with Parts
2 and 15 of the Commission's Rules.
(h) "Rules" means the Commission's Rules found in Title 47 of the Code of
(i) "Act" means the Communications Act of 1934, as amended, 47 U.S.C.
SS151 et seq.
Terms of Agreement
3. The Parties agree that the provisions of this Consent Decree shall be
subject to final approval by the Bureau by incorporation of such
provisions by reference in the Adopting Order.
4. The Parties agree that this Consent Decree does not constitute either
an adjudication on the merits or a factual or legal finding or
determination regarding any compliance or noncompliance with
the requirements of the Act or the Commission's Rules and orders. The
Parties further agree that this Consent Decree is for settlement purposes
only and that, by agreeing to this Consent Decree, AWID does not admit or
deny liability for violating any statute, regulation, or administrative
rule in connection with matters that are the subject of this Consent
5. The Parties agree that this Consent Decree shall become binding on the
Parties on the Effective Date. Upon release, the Adopting Order and
this Consent Decree shall have the same force and effect as any other
final order of the Commission and any violation of the terms or
conditions of this Consent Decree shall constitute a violation of a
6. The Parties acknowledge and agree that this Consent Decree shall
constitute a final and binding settlement between AWID and the Bureau
regarding possible violations of the Act and the Rules with respect to
the import and marketing of RFID devices by AWID prior to the
Effective Date of this Consent Decree.
7. In express reliance on the covenants and representations in this
Consent Decree and to avoid further expenditure of scarce public
resources, the Bureau agrees to terminate its Investigation into
whether AWID may have violated the Act or the Rules with respect to
AWID's RFID devices prior to the Effective Date of this Consent
8. In consideration for termination by the Bureau of the Investigation
and in accordance with the terms of this Consent Decree, AWID agrees
to the terms set forth herein.
9. AWID acknowledges that the Bureau has jurisdiction over the matters
contained in this Consent Decree and the authority to enter into and
adopt this Consent Decree.
10. AWID will implement a Federal Communications Commission Compliance
Plan ("FCC Compliance Plan") related to AWID's future compliance with
the Act, the Commission's Rules, and the Commission's orders. The FCC
Compliance Plan will include, at a minimum, the following components:
a. FCC Compliance Procedures. AWID shall develop and update as necessary
appropriate FCC Compliance Procedures. Relevant AWID personnel shall
be trained on the FCC Compliance Procedures and shall be required to
follow them. The FCC Compliance Procedures will, among other things,
address the equipment authorization requirements of the Act and the
Commission's Rules applicable to RFID devices and accessories
imported, marketed and sold by AWID in the United States, as well as
the Commission's Rules regarding labeling and user manual statements
for such devices.
b. Compliance Officer. AWID shall designate an FCC Compliance Officer
("Compliance Officer") who will administer the FCC Compliance Plan,
supervise AWID's compliance with the Act, the Commission's Rules and
the Consent Decree, and serve as the AWID point of contact for all
Commission-related compliance matters. The Compliance Officer will be
assigned responsibility within AWID for determining whether the
manufacture, importation, marketing, sale, labeling and user manual
requirements for such devices are in compliance with FCC Compliance
c. Interference Complaints. Any interference complaints received by AWID
shall be promptly forwarded to the Compliance Officer for appropriate
consideration and action. To the extent AWID concludes, after
appropriate investigation in response to a complaint, that the
interference results from the fact that the device was non-compliant
with Parts 2 and 15 of the Commission's Rules, AWID shall take
appropriate remedial action at no charge to the complainant.
d. Review and Monitoring. AWID will review the FCC Compliance Plan
annually to ensure that it is maintained in a proper manner and
continues to address the objectives set forth therein.
11. AWID agrees that every RFID device and accessory that is imported or
marketed by AWID in the United States on or after the Effective Date
of this Consent Decree shall be compliant with Parts 2 and 15 of the
Rules before importation and marketing by AWID.
12. The Bureau agrees that it will not entertain or institute, or use the
facts developed in this Investigation or the existence of this Consent
Decree to institute, on its own motion, any new proceeding, formal or
informal, nor take any action on its own motion, or recommend to the
full Commission any forfeiture or other sanction, against AWID for any
alleged violation of the Act or the Rules with respect to any AWID
device and accessories that occurred prior to the Effective Date of
this Consent Decree.
13. The Parties agree that each is required to comply with each individual
condition of this Consent Decree. Each specific condition is a
separate condition of the Consent Decree as approved. To the extent
that AWID fails to satisfy any condition, in the absence of Commission
alteration of the condition, it will be deemed noncompliant and may be
subject to possible future enforcement action with respect to such
failure to satisfy the condition.
14. The Parties agree that AWID's obligations under the Consent Decree
shall expire twenty-four (24) months after the Effective Date of the
15. AWID agrees that it will make a voluntary contribution to the United
States Treasury in the amount of Forty Thousand Dollars ($40,000)
within 30 calendar days after the Effective Date. Such contribution
shall be made, without further protest or recourse, by credit card
through the Commission's Debt and Credit Management Center at (202)
418-1995, or by mailing a check or similar instrument, payable to the
order of the Federal Communications Commission, to the Federal
Commission, P.O. Box 358340, Pittsburgh, PA 15251-8340. Payment by
overnight mail may be sent to Mellon Bank /LB 358340, 500 Ross Street,
Room 1540670, Pittsburgh, PA 15251. Payment by wire transfer may be made
to ABA Number 043000261, receiving bank Mellon Bank, and account number
911-6106. The payment should reference NAL/Acct. No. 200632100018 and FRN
16. AWID's decision to enter into this Consent Decree is expressly
contingent upon the Bureau's issuance of an Adopting Order that is
consistent with this Consent Decree and that adopts the Consent Decree
without change, addition, modification, or deletion.
17. The Parties waive any and all rights they may have to seek
administrative or judicial reconsideration, review, appeal or stay, or
to otherwise challenge or contest the validity of this Consent
Degree and the Adopting Order, provided that the Adopting Order adopts the
Consent Decree without change, addition, modification, or deletion.
18. In the event that this Consent Decree is rendered invalid by any court
of competent jurisdiction, this Consent Decree shall become null and
void and may not be used in any manner in any legal proceeding.
19. If either Party (or the United States on behalf of the Commission)
brings a judicial action to enforce the terms of the Adopting Order,
neither AWID nor the Commission shall contest the continuing validity
of this Consent Decree or the Adopting Order. The Parties agree to
comply with, defend and support the validity of this Consent Decree
and the Adopting Order in any proceeding seeking to nullify, void, or
otherwise modify the Consent Decree or the Adopting Order.
20. The Parties agree that any provision of this Consent Decree that
conflicts with any subsequent rule, order of general applicability or
other decision of general applicability adopted by the Commission will
be superseded by such Commission rule, order or other decision.
21. AWID waives any rights it may have under any provision of the Equal
Access to Justice Act, 5 U.S.C. S 504 and 47 C.F.R. S 1.1501 et seq.,
relating to the matters addressed in this Consent Decree.
22. This Consent Decree cannot be modified without the advance written
consent of both Parties.
23. This Cnsent Decree may be signed in counterparts.
For the Enforcement Bureau:
Kris Anne Monteith
Chief, Enforcement Bureau
For Applied Wireless Identifications Group, Inc.:
Chairman and Chief Executive Officer
47 U.S.C. S 302a(b).
47 C.F.R. S 2.1 et seq. and S 15.101 et seq.
47 U.S.C. S 154(i).
47 C.F.R. SS 0.111, 0.311.
47 U.S.C. S 302a(b).
47 C.F.R. S 2.1 et seq. and S 15.1 et seq.
Federal Communications Commission DA 06-1555
Federal Communications Commission DA 06-1555