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Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
American Future Technology Corporation ) File No. EB-06-SE-093
d/b/a iBuypower ) NAL/Acct. No. 200732100008
) FRN # 0015839814
NOTICE OF APPARENT LIABILITY FOR FORFEITURE
Adopted: December 12, 2006 Released: December 14, 2006
By the Chief, Spectrum Enforcement Division, Enforcement Bureau:
1. In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
American Future Technology Corporation d/b/a iBuypower ("iBuypower")
apparently liable for a forfeiture in the amount of fourteen thousand
dollars ($14,000) for apparent willful and repeated violation of
Section 302(b) of the Communications Act of 1934, as amended ("Act"),
and Section 2.803(a)(2) of the Commission's Rules ("Rules"). The noted
apparent violations involve iBuypower's marketing of unauthorized
computers to the general public.
1. By letter dated November 29, 2005, the Commission's Office of
Engineering and Technology ("OET") notified iBuypower of the apparent
improper marketing of its AMD Athlon-64 and Athlon-64 X2 computers.
Specifically, OET noted that iBuypower was marketing the computers to
the general public prior to obtaining a Declaration of Conformity
("DoC"). OET subsequently referred the matter to the Enforcement
Bureau for investigation. On May 22, 2006, the Enforcement Bureau sent
iBuypower a letter of inquiry ("LOI").
2. In its response to the LOI, dated June 23, 2006, iBuypower states that
it has manufactured and marketed computer models featuring the AMD
Athlon-64 processor since approximately December 2003 and that it has
manufactured and marketed computer models featuring the AMD Atlon-64
X2 processor since approximately June 2005. iBuypower acknowledges
that it sold approximately 7,500 computers featuring the AMD Athlon-64
processor and approximately 2,400 computers featuring AMD Athlon-64 X2
processor prior to completion of the DOC procedure. However, it
asserts that it has endeavored to build the systems from parts which
have been tested and are covered by a current DoC. iBuypower states
that it believed that systems built from approved components did not
themselves require a separate DoC. Finally, iBuypower indicates that
it completed a DoC for its computer systems on January 23, 2006, after
receipt of OET's initial notification.
3. Section 302(b) of the Act provides that "[n]o person shall
manufacture, import, sell, offer for sale, or ship devices or home
electronic equipment and systems, or use devices, which fail to comply
with regulations promulgated pursuant to this section." Section
2.803(a)(2) of the Commission's implementing regulations provides
... [N]o person shall sell or lease, or offer for sale or lease (including
advertising for sale or lease), or import, ship, or distribute for the
purpose of selling or leasing or offering for sale or lease, any radio
frequency device unless ... [i]n the case of a device that is not required
to have a grant of equipment authorization issued by the Commission, but
which must comply with the specified technical standards prior to use,
such device also complies with all applicable administrative (including
verification of the equipment or authorization under a Declaration of
Conformity, where required), technical, labeling and identification
requirements specified in this chapter.
Pursuant to Section 15.101 of the Rules, a DOC must accompany all Class B
personal computers. Furthermore, Section 15.102(b)(4) requires that
computer systems that are assembled from authorized component parts must
themselves be authorized under a DoC. iBuypower does not dispute that it
marketed its completed computer systems featuring the AMD Athlon-64 and
Athlon-64 X2 processors prior to obtaining a DoC. Accordingly, we find
that iBuypower apparently willfully and repeatedly violated Section
302(b) of the Act and Section 2.803(a)(2) Rules by marketing unauthorized
2. Section 503(b) of the Act authorizes the Commission to assess a
forfeiture for each willful or repeated violation of the Act or of any
rule, regulation, or order issued by the Commission under the Act. In
exercising such authority, we are required to take into account "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 such other matters as justice may
3. Pursuant to The Commission's Forfeiture Policy Statement and Amendment
of Section 1.80 of the Rules to Incorporate the Forfeiture Guidelines
("Forfeiture Policy Statement") and Section 1.80 of the Rules, the
base forfeiture amount for the marketing of unauthorized equipment is
$7,000. In this case, iBuypower marketed two unauthorized computer
systems, one featuring the AMD Athlon-64 processor and one featuring
the Athlon-64 X2 processor. iBuypower's marketing of each unauthorized
computer system is a separate violation. We find that a proposed
forfeiture amount of $7,000 is apparently warranted for each violation
for a total proposed forfeiture of $14,000. Accordingly, applying the
Forfeiture Policy Statement and statutory factors to the instant case,
we conclude that iBuypower is apparently liable for a $14,000
IV. ORDERING CLAUSES
4. Accordingly, IT IS ORDERED that, pursuant to pursuant to Section
503(b) of the Act and Section 1.80 of the Rules, iBuypower IS hereby
NOTIFIED of its APPARENT LIABILITY FOR A FORFEITURE in the amount of
fourteen thousand dollars ($14,000) for willfully and repeatedly
violating Sections 302a(b) and 2.803(a)(2) of the Rules.
5. 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 for Forfeiture, iBuypower SHALL PAY the full amount of the
proposed forfeiture or SHALL FILE a written statement seeking
reduction or cancellation of the proposed forfeiture.
6. Payment of the forfeiture must be made by check or similar instrument,
payable to the order of the Federal Communications Commission. The
payment must include the NAL/Acct. No. and FRN No. referenced above.
Payment by check or money order may be mailed to 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.
7. The response, if any, must be mailed to the Office of the Secretary,
Federal Communications Commission, 445 12th Street, S.W., Washington,
D.C. 20554, ATTN: Enforcement Bureau - Spectrum Enforcement Division,
and must include the NAL/Acct. No. referenced in the caption.
8. 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; 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
9. Requests for payment of the full amount of the NAL under an
installment plan should be sent to: Associate Managing Director -
Financial Operations, 445 12^th Street, S.W., Room 1-A625, Washington,
10. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability
for Forfeiture shall be sent by first class mail and certified mail
return receipt requested to American Future Technology Corporation
d/b/a iBuypower, 602 Monterey Pass Road, Monterey Park, California
FEDERAL COMMUNICATIONS COMMISSION
Kathryn S. Berthot
Chief, Spectrum Enforcement Division
47 U.S.C. S 302a(b).
47 C.F.R. S 2.803(a)(2).
See Letter from Ray LaForge, Chief, Audits and Compliance Branch, Office
of Engineering and Technology, dated November 29, 2005.
A Declaration of Conformity is a procedure where the responsible party
makes measurements or takes other necessary steps to ensure that the
equipment complies with the appropriate technical standards. 47 C.F.R. S
2.906(a). Under the Declaration of Conformity procedure, the measurements
must be made by an FCC-accredited laboratory. 47 C.F.R. S 2.948(a)(3). In
addition, a copy of the Declaration of Conformity listing the party
responsible for compliance must be included in the literature supplied
with the product. 47 C.F.R. S 2.1077.
Letter from Kathryn S. Berthot, Deputy Chief, Spectrum Enforcement
Division, Enforcement Bureau, to iBuypower, Inc. (May 22, 2006).
Letter from Darren Su, Vice President, American Future Technology
Corporation dba iBuypower, to Neal McNeil, Federal Communications
Commission, Enforcement Bureau.
If a product must be tested and authorized under a DoC, the responsible
party must ensure that all dissimilar models of the product are authorized
under a separate DoC. Since iBuypower manufactured and marketed computer
systems featuring two different processors, the AMD Athlon-64 and
Athlon-64 X2, it was required to authorize each system under a separate
DoC. See 47 C.F.R. S 2.1077.
47 C.F.R. S 15.101. A Class B digital device is defined as one that is
marketed for use in a residential environment, notwithstanding use in
commercial, business and industrial environments. See 47 C.F.R. S 15.3(i).
Section 312(f)(1) of the Act, 47 U.S.C. S 312(f)(1), which applies to
violations for which forfeitures are assessed under Section 503(b) of the
Act, provides that "[t]he term `willful,' ... means the conscious and
deliberate commission or omission of such act, irrespective of any intent
to violate any provision of this Act or any rule or regulation of the
Commission authorized by this Act ...." See Southern California
Broadcasting Co., 6 FCC Rcd 4387 (1991).
Section 312(f)(2) of the Act provides that "[t]he term `repeated,' ...
means the commission or omission of such act more than once or, if such
commission or omission is continuous, for more than one day." 47 U.S.C. S
47 U.S.C. S 503(b).
47 U.S.C. S 503(b)(2)(D).
12 FCC Rcd 17087 (1997), recon. denied 15 FCC Rcd 303 (1999).
47 C.F.R. S 1.80.
See Samson Technologies, Inc., 19 FCC Rcd 4221, 4225 (2004), consent
decree ordered, 19 FCC Rcd 24542 (2004).
See 47 C.F.R. S 1.1914.
Federal Communications Commission DA 06-2497
Federal Communications Commission DA 06-2497