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Federal Communications Commission
Washington, D.C. 20554
In the matter of )
Skywave Electronics, Inc. ) File
1205 N. Horace Ave. )
Rockford, IL 61101 ) NAL/Acct. No.:
NOTICE OF APPARENT LIABILITY FOR FORFEITURE
Released: May 9, 2000
By the Enforcement Bureau, Atlanta Office:
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
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
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.
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
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.
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