FOR IMMEDIATE RELEASE         News Media Contact: 
March 22, 1999                David Fiske or Rosemary Kimball at (202) 418-0500.

Report No. CI 99-14                    COMPLIANCE AND INFORMATION ACTION      

U.S. DISTRICT COURT ISSUES INJUNCTION AGAINST UNLICENSED NEW YORK CITY RADIO
                            STATION

     On March 12, 1999, the U. S. District Court for the Southern District of New York granted the
government's motion to enjoin operation of an unlicensed radio broadcast station in New York City known as
"Steal This Radio."  In his 26 page opinion, Judge Michael B. Mukasey also denied a complaint filed by "Steal
This Radio" that sought to enjoin the FCC from taking enforcement action against the unlicensed operation.
 
     As a result of an investigation, the New York Field Office (Field Office) of the Compliance and
Information Bureau found that "Steal This Radio," which began broadcasting in November of 1995, was operating
on frequency 88.7 MHz without a license.  Despite a warning from the Field Office, "Steal This Radio" continued
to operate without a license.  Subsequently, the operators of "Steal This Radio" and two listeners of the station filed
their eight count complaint in U.S. District Court, challenging the constitutionality of the Communications Act of
1934, as amended,  and the FCC's licensing regulations, and seeking an injunction against the FCC.  The U.S.
Attorney for the Southern District of New York filed a motion seeking to enjoin "Steal This Radio" from further
operation and moved for dismissal of the "Steal This Radio" complaint.

     The District Court dismissed all eight counts in the complaint filed by "Steal This Radio."  The Court
rejected "Steal This Radio's" First Amendment arguments.  According to the Court, the regulatory framework for
licensing radio stations withstands constitutional review because it specifies procedures which the FCC must follow
in such cases and it provides for judicial review of any  FCC ruling granting or denying a license.

     In granting the United States' request for an injunction against operation of the unlicensed radio station,
the Court stated that "[g]iven plaintiffs' three-year-long, nearly continuous violations of the [statutory] licensing
requirement, there is every indication that plaintiffs will continue to violate this provision in the future unless
restrained by judicial order."
 
     The FCC urges operators of all unlicensed stations to voluntarily cease their illegal broadcasting
operations.  Unlicensed or unauthorized operation of a radio transmitter or station (AM, FM, International Short
Wave and TV) is a violation of Section 301 of the Communications Act of 1934, as amended, 47 U.S.C.  301. 
Under the Communications Act, violators may be subject to penalties up to $11,000 and the equipment used is
subject to seizure and forfeiture by court order.  Unlicensed operators also could be subject to criminal fines of up
to $100,000 and/or imprisonment for up to one year, or both, for a first-time offense.

                                                                                      -FCC-

Compliance and Information Bureau contact:  Pamera Hairston at (202) 418-1160 
Office of the General Counsel contact:  David Silberman at (202) 418-1740; TTY (888) 835-5322