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Before the
Federal Communications Commission
Washington, D.C. 20554
) File No. EB-07-SE-256
) Acct. No. 200832100032
In the Matter of
) FRN No. 0003762242
Panasonic Corporation of North America
) j
) ))))
ORDER
Adopted: April 9, 2008 Released: April 10, 2008
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau ("Bureau") and Panasonic Corporation of
North America ("Panasonic"). The Consent Decree terminates an
investigation by the Bureau against Panasonic for possible violations
of section 330(c) of the Communications Act of 1934, as amended (the
"Act"), and section 15.120(d)(2) of the Commission's rules ("Rules"),
regarding the manufacture in the United States and interstate
shipment, after March 15, 2006, of digital television receivers that
do not comply with the V-Chip technology requirements because they
lack the ability to adapt to new rating systems, and for possible
violations of section 15.117(i)(1)(iv) of the Rules, regarding the
importation and interstate shipment, after March 1, 1007, of
television receivers that do not comply with the DTV tuner
requirement.
2. The Bureau and Panasonic 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.
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 Panasonic 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 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 above-captioned investigation IS
TERMINATED.
7. IT IS FURTHER ORDERED that all third-party complaints against
Panasonic before the Bureau related to the
above-captioned-investigation as of the date of this Consent Decree
ARE DISMISSED.
8. IT IS FURTHER ORDERED that Panasonic shall make its voluntary
contribution to the United States Treasury, as specified in the
Consent Decree, by credit card through the Commission's Revenue and
Receivables Operations Group at (202) 418-1995, or by mailing a check
or similar instrument payable to the order of the Federal
Communications Commission, 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).
9. IT IS FURTHER ORDERED that Panasonic will file 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 report shall include a compliance certificate from an officer, as
an agent of Panasonic, stating that the officer has personal knowledge
that Panasonic 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 reports shall be submitted to the Chief,
Spectrum Enforcement Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, S.W., Washington, D.C.
20554.
10. 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 Peter M. Fannon, Vice President, Technology Policy,
Government & Regulation, Panasonic Corporation of North America, 1130
Connecticut Ave., NW, Suite 1100, Washington, DC 20036.
FEDERAL COMMUNICATIONS COMMISSION
Kris Anne Monteith
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
File No. EB-07-SE-256
In the Matter of )
Acct. No. 200832100032
Panasonic Corporation of North America )
FRN No. 0003762242
)
)
CONSENT DECREE
The Enforcement Bureau ("Bureau") and Panasonic Corporation of North
America ("Panasonic"), by their authorized representatives, hereby enter
into this Consent Decree for the purpose of terminating the Bureau's
investigations into: (1) whether Panasonic violated Section 330(c) of the
Communications Act of 1934, as amended ("Act"), and Section 15.120(d)(2)
of the Commission's Rules ("Rules"), regarding the interstate shipment of
digital television ("DTV") receivers that do not comply with the V-Chip
technology requirements because they lack the ability to adapt to new
rating systems, and (2) whether Panasonic violated Section
15.117(i)(1)(iv) of the Rules, regarding the importation and interstate
shipment, after March 1, 1007, of television receivers that do not comply
with the DTV tuner requirement.
I. DEFINITIONS
1. 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. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
c. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
d. "Complaints" means third-party complaints that may have been received
by, or are in the possession of, the Commission or Bureau alleging
violations of the V-Chip technology requirements.
e. "Compliance Plan" means the program described in this Consent Decree
at paragraph 10.
f. "Digital Television Receivers" or "DTV Receivers" means (i) digital
television broadcast receivers with display screens in the 4:3 aspect
ratio measuring 13 inches or larger diagonally, (ii) digital
television broadcast receivers with display screens in the 16:9 aspect
ratio measuring 7.8 inches or larger vertically, and (iii) digital
television broadcast receivers sold without an accompanying display
device, such as DVR recorders.
g. "Effective Date" means the date on which the Commission releases the
Adopting Order.
h. "Investigations" means (1) the investigation commenced by the Bureau's
August 7, 2007 and October 23, 2007 Letters of Inquiry regarding
whether Panasonic violated section 330(c) of the Act, and section
15.120(d)(2) of the Rules, by shipping interstate DTV receivers that
do not comply with the V-Chip technology requirements because they
lack the ability to adapt to new rating systems, and (2) the
investigation commenced by the Bureau following Panasonic's March 26,
2008 disclosure to Bureau staff regarding the importation and
interstate shipment of television tuners that do not comply with the
DTV tuner requirement.
i. "Order" or "Adopting Order" means an Order of the Bureau adopting the
terms of this Consent decree without change, addition, deletion, or
modification.
j. "Parties" means Panasonic and the Bureau.
k. "Panasonic" means Panasonic Corporation North America.
l. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
II. BACKGROUND
2. Section 303(x) of the Act directs the Commission to prescribe rules
that require television receivers with picture screens 13 inches or
greater shipped in interstate commerce or manufactured in the United
States to be equipped with a feature designed to enable viewers to
block the display of all programs with a common rating. Section 330(c)
of the Act provides that no person shall ship in interstate commerce
or manufacture in the United States television receivers that do not
comply with rules prescribed by the Commission pursuant to Section
303(x). The Commission adopted program blocking capability
requirements for both analog and digital television ("DTV") receivers
in 1998. In 2004, the Commission adopted specific technical standards
to implement V-Chip functionality for DTV receivers ("V-Chip
technology requirements"). The DTV V-Chip technology requirements
provide that, effective March 15, 2006, digital television receivers
with picture screens 13 inches or greater that are shipped in
interstate commerce must be equipped with V-Chip technology to allow
blocking of the display of programming based on its content and be
able to respond to changes in the content advisory rating system.
3. The DTV tuner requirement provides that all new television broadcast
receivers that are imported into the United States or shipped in
interstate commerce be capable of receiving the signals of DTV
broadcast stations over-the-air. Under the phased-in implementation
schedule for the DTV tuner requirement, receivers with screen sizes
36" and above were required to include DTV tuners effective July 1,
2005, receivers with screen sizes 25-35" were required to include DTV
tuners effective March 1, 2006, and receivers with screen sizes less
than 25" and other video devices that receive television signals were
required to include DTV tuners effective March 1, 2007.
4. On August 7, 2007, the Bureau issued a letter of inquiry (LOI) to
Panasonic. The August 7, 2007 LOI directed Panasonic, among other
things, to submit a sworn written response to a series of questions
relating to its compliance with the DTV V-Chip technology
requirements. Panasonic responded to the August 7, 2007 LOI on
September 5, 2007. On October 23, 2007, the Bureau issued a second LOI
to Panasonic. Panasonic responded to the October 23, 2007 LOI on
November 13, 2007.
5. On March 26, 2008, Panasonic voluntarily disclosed to the Bureau that,
after March 1, 2007, one of its sales units had continued to import
and ship interstate analog-only tuners marketed as kits for
after-market installation in automotive video entertainment systems.
III. TERMS OF AGREEMENT
6. 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.
7. Jurisdiction. Panasonic 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.
8. 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.
9. Termination of Investigations. 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
Investigations and dismiss the Complaints. In consideration for
termination by the Bureau of the Investigations and dismissal of the
Complaints in accordance with the terms of this Consent Decree,
Panasonic 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 these
Investigations 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 Panasonic concerning the matters that were the subject
of the Investigations. 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 Panasonic with respect to
Panasonic's basic qualifications, including its character
qualifications, to hold Commission authorizations.
10. Compliance Plan. For purposes of settling the matters set forth
herein, Panasonic 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 includes the following
components.
a. Compliance Officer. Panasonic will designate a Compliance Officer who
will be responsible for administering the Compliance Plan.
b. Compliance Measures. Panasonic has a Corporate Compliance Program to
insure compliance with the V-Chip and DTV tuner requirements. The
parent company's Corporate Quality Assurance Division is responsible
for design and specification compliance at the factory and our U.S.
company's Technology Policy and Regulatory Affairs Division is
responsible for review of all related products imported for sale in
the U.S. They are also responsible for post-production testing,
notices and information bulletins of regulatory requirements/changes
necessary to insure compliance.
c. Receiver Upgrades. Panasonic customers who purchased 2006 model year
televisions were advised that a free software upgrade was available,
which software upgrade can be easily installed (by inserting an SD
card) on their DTV receivers to enable the receivers to respond to
changes in the content advisory rating system. Only the 2006 models
are involved. Panasonic agrees to send reminder notices to customers
who registered their DTV receivers stating that they can download the
software from Panasonic's website to an SD card, or call Panasonic's
800 number and obtain a free SD card with the software upgrade. In
addition, Panasonic agrees to continue to make the free software
upgrade available on its website or by calling its 800 number for a
period of five years from the Effective Date of this Consent Decree.
d. Compliance Reports. Panasonic 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 Panasonic, stating that the officer has
personal knowledge that Panasonic 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.
e. Termination Date. Unless stated otherwise, the requirements of this
Consent Decree will expire twenty-four months after the Effective
Date.
9. Voluntary Contribution. Panasonic agrees that it will make a voluntary
contribution to the United States Treasury in the amount of $320,000. 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).
10. Waivers. Panasonic 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
Order adopting this Consent Decree, provided the Bureau issues an Order
adopting the Consent Decree without change, addition, modification, or
deletion. Panasonic 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
Panasonic nor the Commission shall contest the validity of the Consent
Decree or the Adopting Order, and Panasonic shall waive any statutory
right to a trail de novo. Panasonic 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.
11. Severability. The Parties agree that if any of the provisions of the
Adopting Order or the Consent Decree shall be invalid or unenforceable,
such invalidity or unenforceability shall not invalidate or render
unenforceable the entire Adopting Order or Consent Decree, but rather the
entire Adopting Order or Consent Decree shall be construed as if not
containing the particular invalid or unenforceable provision or
provisions, and the rights and obligations of the Parties shall be
construed and enforced accordingly. 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.
12. 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 Panasonic does not expressly consent) that
provision will be superseded by such Commission rule or Order.
13. 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.
14. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
15. 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.
16. Authorized Representative. Each party represents and warrants to the
other that it has full power and authority to enter into this Consent
Decree.
17. 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
________________________________
Dr. Paul Liao
Chief Technology Officer and Vice President
Panasonic Corporation of North America
________________________________
Date
47 U.S.C. S: 330(c).
47 C.F.R. S: 15.120(d)(2).
47 C.F.R. S: 15.117(i)(1)(iv).
47 U.S.C. S: 154(i).
47 C.F.R. S:S: 0.111, 0.311.
47 U.S.C. S: 303(c).
47 C.F.R. S: 15.120(d)(2).
47 C.F.R. S: 15.117(i)(1)(iv).
See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
Enforcement Bureau, to Richard C. Mullen, Panasonic Corporation of North
America (August 7, 2007) ("August 7, 2007 LOI"); Letter from Kathryn S.
Berthot, Chief, Spectrum Enforcement Division, Enforcement Bureau, to
Peter Fannon, Panasonic Corporation of North America (October 23, 2007)
("October 23, 2007 LOI").
47 U.S.C. S: 303(x).
47 U.S.C. S: 330(c).
In the Matter of Technical Requirements to Enable Blocking of Video
Programming Based on Program Rating, Implementation of Sections 551(c),
(d), and (e) of the Telecommunications Act of 1996, Report and Order, 13
FCC Rcd 11248 (1998).
In the Matter of Second Periodic Review of the Commission's Rules and
Policies Affecting the Conversion to Digital Television, Report and Order,
19 FCC Rcd 18279 (2004). The V-Chip technology requirements also apply to
devices sold without an accompanying display device. Id. at 18348.
47 C.F.R. S: 15.120(d)(2).
Review of the Commission's Rules and Policies Affecting the Conversion to
Digital Television, Second Report and Order and Second Memorandum Opinion
and Order, 17 FCC Rcd 15978, 15996 (2002).
47 C.F.R. S: 15.117(i)(1)(i)-(iv).
See August 7, 2007 LOI.
See Letter from Peter M. Fannon, Vice President, Technology Policy,
Government & Regulation, Panasonic Corporation of North America, to Neal
McNeil, Spectrum Enforcement Division, Enforcement Bureau (September 5,
2007).
See October 23, 2007 LOI.
See Letter from Peter M. Fannon, Vice President, Technology Policy,
Government & Regulation, Panasonic Corporation of North America, to Neal
McNeil, Spectrum Enforcement Division, Enforcement Bureau (November 13,
2007).
Federal Communications Commission DA 08-843
2
Federal Communications Commission DA 08-843