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


In the matter of              )
                         )
Skywave Electronics, Inc.          )                   File 
Number: EB-00AT-289
1205 N. Horace Ave.           )
Rockford, IL  61101           )                   NAL/Acct. No.: 
X3248003


           NOTICE OF APPARENT LIABILITY FOR FORFEITURE

                                            Released: May 9, 2000

By the Enforcement Bureau, Atlanta Office:


                        I.  INTRODUCTION

     1.  In this Notice of Apparent Liability for Forfeiture 
(``NAL''), we find that Skywave Electronics, Inc. (``Skywave'') 
has apparently violated Section 302 of the Communications Act of 
1934, (``the Act''), as amended1, and Section 2.907 of the 
Commission's rules2 by marketing a non-compliant device for use 
in the FM broadcast band.  We conclude that Skywave is apparently 
liable for a forfeiture in the amount of seven thousand dollars 
($7,000).

                         II.  BACKGROUND

     2.  Skywave Electronics, Inc. was issued a Grant of 
Equipment Authorization on August 18, 1998, for the manufacture 
and distribution of a low power transmitter device, model SKY-
2000 Digital FM Transmitter, (FCC Identifier NX3SKY2000).   The 
device was later modified and an updated Grant of Equipment 
Authorization was issued on July 13, 1999.  
     
     3.   On August 6, 1999, an agent from the Enforcement 
       Bureau's Denver Field Office 
conducted an investigation into the apparent over-powered 
operation of a low power FM transmitter.  The suspect unit, a 
SKY-2000 digital FM transmitter, manufactured by Skywave 
Electronics, Inc., Rockford, IL, was located using a Commission 
mobile digital direction finding (``MDDF'') vehicle.  Field 
measurements of the suspect transmitter determined it to be 
operating at 29 times the legal value that is authorized by 
Section 15.239 Commission rules3.

     4.   As a result of the Denver Field Office investigation,  
       the FCC's Office of Engineering
 and Technology Laboratory (OET) requested and obtained two 
sample transmitters from Skywave to be evaluated for compliance.  
These units were inspected and evaluated by OET and one of the 
units failed to meet the emission requirements for the grant 
issued.  An Official Citation was issued on October 5, 1999, for 
marketing a device that operated in violation of the Commission's 
rules.4

     5.  On September 28, 1999, agents from the Enforcement 
Bureau's Atlanta Field Office 
conducted an investigation into the marketing of low power FM 
transmitters as a result of local news reports featuring the 
transmitters.  Agents found several non-compliant SKY-2000 FM 
transmitters manufactured and distributed by Skywave being 
operated throughout the local Atlanta area.

     6.   On September 28, 1999, during an inspection of a SKY-
       2000 transmitter,  Mr. Daniel
M. Larson, President of Skywave Electronics, Inc., advised an 
agent of the Atlanta Field Office, in a telephone conversation, 
that all units shipped from the Skywave after July 13, 1999 were 
in compliance with the new grant issued on July 13, 1999.  
However, FCC agents obtained evidence that several non-compliant 
units were shipped beyond the July 13, 1999 date.

                        III.  DISCUSSION

     7.  Mr. Daniel M. Larson, as the President of Skywave 
Electronic, Inc., is responsible for knowledge of, and compliance 
with, applicable sections of the Commission's rules. Section 
2.9075 defines certified equipment based on representations and 
test data submitted by the applicant.  This certification 
attaches to all units subsequently marketed by the grantee.  
Section15.2396 limits the power output of a low power FM 
transmitter to 250 microvolts per meter at 3 meters.

     8.  Beginning on September 28, 1999, FCC agents from the 
Atlanta Field Office located and measured the emissions of eleven 
low power transmitters manufactured and distributed by Skywave 
and found all to greatly exceed the authorized limits of Section 
15.2397 of the Commission's rules.

     9.   Section 503(b) of the Act, 47 U.S.C.  503(b)(1),8 

       provides that any person who 

willfully9 and repeatedly10 fails to comply with the terms and 

conditions of the Commission's rules shall be liable for a 

forfeiture penalty.  Based on the above evidence, we find that 

Skywave willfully and repeatedly violated Section 302 of the Act, 

Sections 302 and 2.907 of the Commission's rules11. 

     10.  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''), the base forfeiture amounts are $7,000 for the 

manufacture and distribution of non-compliance Part 15 devices. 

In assessing the monetary forfeiture amount, we must also take 

into account the statutory factors set forth in Section 

503(b)(2)(D) of the Act, which include the nature, circumstances, 

extent, and gravity of the violation(s), 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.12  Skywave's violations were repeated and willful.  

Applying the Forfeiture Policy Statement and statutory factors to 

the instant case, a $7,000 forfeiture is warranted.


                      IV.  ORDERING CLAUSES

     11.  Accordingly, IT IS ORDERED THAT, pursuant to Section 
503(b) of the Act13, and Sections 0.111, 0.311 and 1.80 of the 
Commission's Rules14, Skywave Electronics, Inc. is hereby 
NOTIFIED of its APPARENT LIABILITY FOR A FORFEITURE in the amount 
of seven thousand dollars ($7,000) for violating Section 302 of 
the Act and Section 2.907 of the Commission's rules.15
     12.  IT IS FURTHER ORDERED THAT, pursuant to Section 1.80 of 
the Commission's rules16, within thirty days of the released date 
of this NOTICE OF APPARENT LIABILITY, Skywave Electronics, Inc., 
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 credit card 
through the Commission's Credit and Debt 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 Forfeiture Collection Section, Finance Branch, Federal 
Communications Commission, P.O. Box 73482, Chicago, Illinois 
60673-7482.  The payment should note the NAL/Acct. No. X32480003.

     14.  The response if any must be mailed to Office of the 
Secretary, Federal Communications Commission, 445 12th Street, 
S.W., Washington, D.C. 20554, Attn: Enforcement Bureau -TPSD, 
NAL/Acct. No. X3248003, and must include the NAL/Acct. No. 
X3248003.

     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; 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, Credit and Debt Management Center, 445 12th Street, 
S.W., Washington, D.C. 20554.17 

     17.  IT IS FURTHER ORDERED THAT a copy of this NOTICE OF 
APPARENT LIABILITY shall be sent by Certified Mail Return Receipt 
Requested to Skywave Electronics, Inc., 1205 N. Horace Ave., 
Rockford, IL  61101.


               FEDERAL COMMUNICATIONS COMMISSION



                    Fred L. Broce  
                    District Director, Atlanta Office
_________________________

1 47 U.S.C.  302

2 47 C.F.R.  2.907 

3 47 C.F.R.  15.239
4 47 C.F.R.   15.239

5 47 C.F.R.   2.907

6 47 C.F.R.  15.239

7 47 C.F.R.  15.239

8 47 U.S.C.  503(b)(1).  See also Section 1.80(a)(1) and (2), 47 
C.F.R.  1.80(a)(1) and (2)

9 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).

10 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 
`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.''

11 Section 302 of the Act, 47 U.S.C.  302 and 47 C.F.R.  2.907

12 47 U.S.C.  503(b)(2)(D).  See also Forfeiture Policy 
Statement, 12 FCC Rcd at 17100-01 (discussion of upward and 
downward adjustment factors).

13 47 U.S.C.  503(b)

14 47 C.F.R.  0.111, 0.311, 1.80

15 Section 302 of the Act, 47 U.S.C.  302 and 47 C.F.R.  2.907

16 47 C.F.R.  1.80

17 See 47 C.F.R.  1.1914