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Before the
Federal Communications Commission
Washington, D.C. 20554
)
) File No. EB-08-SE-519
In the Matter of
) Acct. No. 200832100084
TTE Technology, Inc.
) FRN No. 0018101915
)
ORDER
Adopted: September 10, 2008 Released: September 12, 2008
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau ("Bureau") and TTE Technology, Inc.
("TTE"). The Consent Decree terminates an investigation by the Bureau
against TTE for possible violations of Sections 15.117(a) and
15.117(i)(1)(iii) of the Commission's Rules ("Rules"), regarding the
importation or interstate shipment into the United States, after March
1, 2007, of new television broadcast receivers without digital tuners
for sale or resale to the public in the United States.
2. The Bureau and TTE have negotiated the terms of the Consent Decree
that resolve this matter. A copy of the Consent Decree is attached
hereto and incorporated by reference.
3. After reviewing the terms of the Consent Decree and evaluating the
facts before us, we find that the public interest would be served by
adopting the Consent Decree and terminating the investigation.
4. In the absence of material new evidence relating to this matter, we
conclude that our investigation raises no substantial or material
questions of fact as to whether TTE possesses the basic
qualifications, including those related to character, to hold or
obtain any Commission license or authorization.
5. Accordingly, IT IS ORDERED that, pursuant to section 4(i) of the
Communications Act of 1934, as amended, and sections 0.111 and 0.311
of the Commission's Rules, the Consent Decree attached to this Order
IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigation IS
TERMINATED.
7. 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 counsel for TTE, Larry R. Sidman, Esq., Paul, Hastings,
Janofsky & Walker LLP, 875 18th St., NW, Washington, DC 20005.
FEDERAL COMMUNICATIONS COMMISSION
Kris Anne Monteith
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
) File No. EB-08-SE-519
In the Matter of
) Acct. No. 200832100084
TTE Technology, Inc.
) FRN No. 0018101915
)
CONSENT DECREE
The Enforcement Bureau ("Bureau") and TTE Technology, Inc. ("TTE"), by
their authorized representatives, hereby enter into this Consent Decree
for the purpose of terminating the Bureau's investigation into whether TTE
violated Sections 15.117(a) and 15.117(i)(1)(iii) of the Commission's
Rules ("Rules"), regarding the importation or interstate shipment into the
United States, after March 1, 2007, of new television broadcast receivers
without digital tuners for sale or resale to the public in the United
States.
I. DEFINITIONS
8. For the purposes of this Consent Decree, the following definitions
shall apply:
a. "Act" means the Communications Act of 1934, as amended U.S.C. S:S: 151
et seq.
b. "Adopting Order" means an Order of the Bureau adopting the terms of
this Consent Decree without change, addition, deletion, or
modification.
c. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
d. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
e. "Compliance Plan" means the program described in this Consent Decree
at paragraph 8 and, as summarized in Appendix A, attached to this
Consent Decree.
f. "Effective Date" means the date on which the Bureau releases the
Adopting Order.
g. "Investigation" means the investigations commenced by the Bureau's May
14, 2008 Letter of Inquiry regarding whether TTE violated Sections
15.117(a) and 15.117(i)(1)(iii) of the Rules regarding the importation
or interstate shipment into the United States, after March 1, 2007, of
new television broadcast receivers without digital tuners for sale or
resale to the public in the United States.
h. "Parties" means TTE and the Bureau.
i. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
j. "TTE" means TTE Technology, Inc. and its predecessors-in-interest and
successors-in-interest.
II. BACKGROUND
9. Pursuant to Sections 15.117(a) and 15.117(i)(1)(iii) of the Rules,
effective March 1, 2007, all new television broadcast receivers with
screen sizes less than 25" shipped in interstate commerce or imported
into the United States, for sale or resale to the public, were
required to be equipped with DTV tuners.
10. On May 14, 2008, the Bureau issued a letter of inquiry (LOI) to TTE.
The May 14, 2008 LOI directed TTE, among other things, to submit a
sworn written response to a series of questions relating to its
compliance with the Commission's DTV tuner requirement. TTE responded
to the May 14, 2008 LOI on July 10, 2008.
III. TERMS OF AGREEMENT
11. Adopting Order. 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
without change, addition, modification, or deletion.
12. Jurisdiction. TTE agrees that the Bureau has jurisdiction over it and
the matters contained in this Consent Decree and has the authority to
enter into and adopt this Consent Decree.
13. Effective Date; Violations. The Parties agree that this Consent Decree
shall become effective on the date on which the Bureau releases the
Adopting Order. Upon release, the Adopting Order and this Consent
Decree shall have the same force and effect as any other final Order
of the Bureau. Any violation of the Adopting Order or of the terms of
this Consent Decree shall constitute a separate violation of a Bureau
Order, entitling the Bureau to exercise any rights and remedies
attendant to the enforcement of a Commission Order.
14. Termination of Investigation. In express reliance on the covenants and
representations in this Consent Decree and to avoid further
expenditure of public resources, the Bureau agrees to terminate the
Investigation. In consideration for termination by the Bureau of the
Investigation in accordance with the terms of this Consent Decree, TTE
agrees to the terms, conditions, and procedures contained herein. The
Bureau further agrees that in the absence of new material evidence,
the Bureau will not use the facts developed in this Investigation
through the Effective Date of the Consent Decree, or the existence of
this Consent Decree, to institute, on its own motion, any new
proceeding, formal or informal, or take any action on its own motion
against TTE concerning the matters that were the subject of the
Investigation. The Bureau also agrees that it will not use the facts
developed in this investigation through the Effective Date of this
Consent Decree, or the existence of this Consent Decree, to institute
on its own motion any proceeding, formal or informal, or take any
action on its own motion against TTE with respect to TTE's basic
qualifications, including its character qualifications, to hold
Commission authorizations.
15. Compliance Plan. For purposes of settling the matters set forth
herein, TTE agrees to maintain a Compliance Plan related to future
compliance with the Act, the Commission's Rules, and the Commission's
Orders. The Compliance Plan will include the following components.
a. Importation or Interstate Shipment of Receivers. TTE agrees that every
new television receiver imported or shipped interstate into the United
States by TTE for sale or resale to the public in the United States on
or after the Effective Date of this Consent Decree will be compliant
with Section 15.117(a) and Section 15.117(i)(1)(iii) of the Rules.
b. Compliance Plan. TTE agrees to implement a Compliance Plan (summarized
in Appendix A attached hereto and incorporated by reference) to ensure
fulfillment of the commitment set forth in Paragraph 8(a) of this
Consent Decree.
c. Compliance Reports. TTE will file compliance reports with the
Commission ninety days after the Effective Date, twelve months after
the Effective Date, and twenty-four months after the Effective Date.
Each compliance report shall include a compliance certificate from an
officer, as an agent of TTE, stating that the officer has personal
knowledge that TTE has established operating procedures intended to
ensure compliance with this Consent Decree, together with an
accompanying statement explaining the basis for the officer's
compliance certification. All compliance reports shall be submitted to
Chief, Spectrum Enforcement Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, S.W., Washington, D.C.
20554.
d. Termination Date. Unless stated otherwise, the requirements of this
Consent Decree will expire twenty-four months after the Effective
Date.
16. Voluntary Contribution. TTE agrees that it will make a voluntary
contribution to the United States Treasury in the amount of
$12,500.00. The payment will be made within 30 days after the
Effective Date of the Adopting Order. The payment must be made by
check or similar instrument, payable to the order of the Federal
Communications Commission. The payment must include the Account Number
and FRN Number referenced in the caption to the Adopting Order.
Payment by check or money order may be mailed to Federal
Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000.
Payment by overnight mail may be sent to U.S. Bank - Government
Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO
63101. Payment by wire transfer may be made to ABA Number 021030004,
receiving bank TREAS/NYC, and account number 27000001. For payment by
credit card, an FCC Form 159 (Remittance Advice) must be submitted.
When completing the FCC Form 159, enter the Account number in block
number 23A (call sign/other ID), and enter the letters "FORF" in block
number 24A (payment type code). TTE will also send electronic
notification on the date said payment is made to Kathryn Berthot at
kathy.berthot@fcc.gov.
17. Waivers. TTE waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or stay, or
to otherwise challenge or contest the validity of this Consent Decree
and the Adopting Order, provided the Bureau issues an Adopting Order
adopting the Consent Decree without change, addition, modification, or
deletion. TTE shall retain the right to challenge Commission
interpretation of the Consent Decree or any terms contained herein. 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
TTE nor the Commission shall contest the validity of the Consent
Decree or the Adopting Order, and TTE shall waive any statutory right
to a trail de novo. TTE hereby agrees to waive any claims it may
otherwise have under 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.
18. Invalidity. In the event that this Consent Decree in its entirety is
rendered invalid by any court of competent jurisdiction, it shall
become null and void and may not be used in any manner in any legal
proceeding.
19. Subsequent Rule or Order. The Parties agree that if any provision of
this Consent Decree conflicts with any subsequent rule or Order
adopted by the Commission (except an Order specifically intended to
revise the terms of this Consent Decree to which TTE does not
expressly consent) that provision will be superseded by such
Commission rule or Order.
20. Successors and Assigns. TTE agrees that the provisions of this Consent
Decree shall be binding on its successors, assigns, and transferees.
21. Final Settlement. The Parties agree and acknowledge that this Consent
Decree shall constitute a final settlement between the Parties. The
Parties further 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.
22. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
23. Paragraph Headings. The headings of the Paragraphs in this Consent
Decree are inserted for convenience only and are not intended to
affect the meaning or interpretation of this Consent Decree.
24. Authorized Representative. Each party represents and warrants to the
other that it has full power and authority to enter into this Consent
Decree.
25. Counterparts. This Consent Decree may be signed in any number of
counterparts (including by facsimile), each of which, when executed
and delivered, shall be an original, and all of which counterparts
together shall constitute one and the same fully executed instrument.
_______________________________
Kris Anne Monteith
Chief
Enforcement Bureau
________________________________
Date
________________________________
Mike Droese
Vice President and General Manager, Support Operations
TTE Technology, Inc.
________________________________
Date
APPENDIX A
Compliance Plan
of
TTE Technology, Inc. ("TTE")
I. TTE has established, on or as of the Effective Date of this Consent
Decree, an updated management process to ensure ongoing and future
compliance with Commission Rules and regulations. The TTE management
personnel delineated in section II below have been charged with
monitoring, on an on-going basis, all relevant Commission Rules and
regulations applying to the importation or shipment into interstate
commerce in the United States for sale or resale to the public in the
United States of new television broadcast receivers.
II. TTE has designated its General Manager, Support Operations ("General
Manager") to administer this Compliance Plan and be directly responsible
for TTE's compliance with the Commission's Rules and this Consent Decree.
In the event the General Manager is unable to continue performing these
functions, these functions will be performed by management personnel with
similar responsibilities. The General Manager will engage in an on-going
review of Commission Rules, orders, and regulations in order to maintain
compliance with the Commission's Rules. This process will be enhanced by
the on-going review of Commission Rules, orders and regulations by virtue
of TTE's position on the Consumer Electronics Association's video board,
as well as by TTE's outside counsel.
III. TTE has adopted special procedures to ensure that all new television
broadcast receivers imported or shipped interstate into the United States
for sale or resale to the public in the United States will comply with
applicable Commission Rules. Specifically, only digital television
broadcast receivers for United States customers will have pricing data
associated with them, ensuring that no United States customer will be able
to purchase a noncompliant new television broadcast receiver.
IV. In the interest of expediting a smooth DTV transition and minimizing
any potential consumer confusion or disruption, TTE is voluntarily
providing a DTV broadcast receiver to replace each analog only TV
broadcast receiver that is covered by a warranty exchange as of the
Effective Date of the Consent Decree.
V. In the event of any question concerning appropriate compliance with the
Commission Rules or regulations with regard to new television broadcast
receivers the General Manager identified in section II above will consult
with regulatory counsel.
47 C.F.R. S:S: 15.117(a) and 15.117(i)(1)(iii).
47 U.S.C. S: 154(i).
47 C.F.R. S:S: 0.111, 0.311.
47 C.F.R. S:S: 15.117(a) and 15.117(i)(1)(iii).
See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
Enforcement Bureau, to Susan Modelski, TTE Technology, Inc. (May 14, 2008)
("May 14, 2008 LOI").
See May 14, 2008 LOI.
See Letter from Mike Droese, Vice President and General Manager, Support
Operations, TTE Technology, Inc., to Kathryn Berthot, Chief, Spectrum
Enforcement Division, Enforcement Bureau (July 10, 2008).
Federal Communications Commission DA 08-2068
2
Federal Communications Commission DA 08-2068