Click here for Adobe Acrobat version
Click here for Microsoft Word version

******************************************************** 
                      NOTICE
********************************************************

This document was converted from Microsoft Word.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.

*****************************************************************



                                   Before the

                       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            
                                             )                               


                                     ORDER

   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
       reference.

    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
       authorization.

    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
       TERMINATED.

    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

                                 CONSENT DECREE

   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
   ("Rules").

   Background

    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.

   Definitions

    2. For the purposes of this Consent Decree, the following definitions
       shall apply:

   (a) "Commission" and "FCC" mean the Federal Communications Commission.

   (b) "Bureau" means the Enforcement Bureau of the Federal Communications
   Commission.

   (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
   Adopting Order.

   (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
   Federal Regulations.

   (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
   Decree.

    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
       Commission order.

    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
       Decree.

    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
       Procedures.

    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
       Consent Decree.

   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
       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. The payment should reference NAL/Acct. No. 200632100018 and FRN
   # 0012350286.

   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

   ________________________________

   Date

   For Applied Wireless Identifications Group, Inc.:

   ________________________________

   Larry Kellam

   Chairman and Chief Executive Officer

   ________________________________

   Date

   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

   1

                  Federal Communications Commission DA 06-1555

                                       3