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-07-SE-254
SANYO TV International Corporation d/b/a )
Acct. No. 200832100030
SANYO Manufacturing Company )
FRN No. 0001726231
and )
j
SANYO Fisher Company, a division of )
))))
SANYO North America Corporation )
)
)
ORDER
Adopted: April 9, 2008 Released: April 11, 2008
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau ("Bureau") and SANYO TV International
Corporation d/b/a/ SANYO Manufacturing Company ("SMC") and SANYO
Fisher Company ("SFC"), a division of SANYO North America Corporation
(collectively, "SANYO"). The Consent Decree terminates an
investigation by the Bureau against SANYO 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.
2. The Bureau and SANYO 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 SANYO 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 SANYO
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 SANYO 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 SANYO 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 SANYO, stating that the officer has personal knowledge that
SANYO 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 Alan G. Fishel, Esq. and Jeffrey E. Rummel, Esq., Arent
Fox LLP, 1050 Connecticut Avenue, NW, Washington, DC 20036-5339.
FEDERAL COMMUNICATIONS COMMISSION
Kris Anne Monteith
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
)
In the Matter of
)
SANYO TV International Corporation d/b/a
) File No. EB-07-SE-254
SANYO Manufacturing Company
) Acct. No. 200832100030
and
) FRN No. 0001726231
SANYO Fisher Company, a division of
)
SANYO North America Corporation
)
)
)
CONSENT DECREE
The Enforcement Bureau ("Bureau") and SANYO TV International Corporation
d/b/a/ SANYO Manufacturing Company ("SMC") and SANYO Fisher Company
("SFC"), a division of SANYO North America Corporation (collectively,
"SANYO"), by their authorized representatives, hereby enter into this
Consent Decree for the purpose of terminating the Bureau's investigation
into whether SANYO 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 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.
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, 47 U.S.C.
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 8.
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) devices
with digital television broadcast tuners sold without an accompanying
display device, such as DVR recorders.
g. "Effective Date" means the date on which the Bureau releases the
Adopting Order.
h. "Investigation" means the investigation commenced by the Bureau's
August 9, 2007 Letter of Inquiry regarding whether SANYO violated
section 330(c) of the Act, and section 15.120(d)(2) of the Rules, by
shipping interstate digital television receivers that do not comply
with the V-Chip technology requirements because they lack the ability
to adapt to new rating systems.
i. "SANYO" means SANYO TV International Corporation d/b/a SANYO
Manufacturing Company, SANYO Fisher Company, a division of SANYO North
America Corporation, and their predecessors-in-interest and
successors-in-interest.
j. "Order" or "Adopting Order" means an Order of the Bureau adopting the
terms of this Consent Decree without change, addition, deletion, or
modification.
k. "Parties" means SANYO and the Bureau.
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. On August 9, 2007, the Bureau issued a letter of inquiry (LOI) to
SANYO. The August 9, 2007 LOI directed SANYO, 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. SANYO
responded to the August 9, 2007 LOI on November 15, 2007, and
submitted follow-up responses on December 13, 2007, March 27, 2008,
and April 3, 2008.
III. TERMS OF AGREEMENT
4. 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.
5. Jurisdiction. SANYO 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.
6. 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 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.
7. 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 its
Investigation and dismiss the Complaints. In consideration for the
termination of said Investigation and dismissal of the Complaints,
SANYO 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 SANYO 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 SANYO with respect to
SANYO's basic qualifications, including its character qualifications,
to be a Commission licensee, authorized common carrier, or hold
Commission authorizations.
8. Compliance Plan. For purposes of settling the matters set forth
herein, SANYO agrees to create within 30 days and maintain, a
Compliance Plan related to future compliance with the Act, the
Commission's Rules, and the Commission's Orders. The Plan will
include, at a minimum, the following components:
a. Compliance Officer. Sanyo will designate an employee of Sanyo to serve
as the V-Chip Compliance Officer (the "VCO"). The VCO will oversee
Sanyo's Compliance Program, ensuring compliance with the Commission's
DTV V-Chip technology requirements and ascertaining whether any
developments may trigger additional compliance-related
responsibilities under the Act or the Commission's rule. Sanyo
personnel with questions regarding compliance on DTV V-Chip technology
requirements will be directed to the VCO for assistance. Where
necessary, the VCO will consult with outside counsel for assistance.
The VCO will report regularly to Sanyo's senior management as
necessary about the status of Sanyo's V-Chip related compliance
efforts. The VCO also will promptly notify Sanyo's senior management
as necessary about any company-related developments which would or
might affect Sanyo's compliance with the Commission's DTV V-Chip
technology requirements.
b. Compliance Manual. Sanyo, through the VCO, will develop a Compliance
Manual for distribution on or before the date of the initial
compliance training program described in Paragraph 8(c) below, to
company engineers, managers, lawyers, and other parties responsible
for the company's compliance with the Commission's V-chip
requirements. The Compliance Manual will include the matters covered
in the Compliance Training Program, i.e., an overview of the
Commission's V-chip requirements, and issues relating to ensure
compliance on a going-forward basis. The Compliance Manual will be
updated from time to time as needed.
c. Training. The VCO, with assistance from outside counsel if necessary,
will conduct an initial education program within 90-days of the
Effective Date for company engineers, managers, lawyers and other
pertinent employees. This education program will include an overview
of the Commission's V-chip requirements and issues relating to ensure
compliance on a going-forward basis. This education program will be
updated and presented annually and additionally from time to time as
needed to ensure that Sanyo remains informed of regulatory compliance
requirements.
d. Database. The VCO or its designee will assemble and maintain
information about Sanyo's DTV models subject to the Commission's
V-chip requirements. The database will be accessible by all pertinent
employees.
e. Review Prior to Shipment or Marketing. Prior to the initial shipment
of any new DTV receiver model, Sanyo will first ensure that such
model's design and specifications have been verified, through
post-production testing, for compliance with the Commission's V-chip
requirements, and a report has been completed confirming same. These
reports and records from a sample for each such model will be kept on
file.
f. Compliance Reports. SANYO 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 the
VCO, as an agent of SANYO, stating that the officer has personal
knowledge that SANYO 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
the Chief, Spectrum Enforcement Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, S.W., Washington, D.C.
20554.
g. Termination Date. Unless stated otherwise, the requirements of this
Consent Decree will expire twenty-four months after the Effective
Date.
9. Voluntary Contribution. SANYO agrees that it will make a voluntary
contribution to the United States Treasury in the amount of $375,000.
The payment will be made within thirty (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. SANYO 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. SANYO 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 SANYO nor the Commission shall contest the
validity of the Consent Decree or the Adopting Order, and SANYO shall
waive any statutory right to a trial de novo. SANYO 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
the 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 SANYO does not expressly
consent) that provision will be superseded by such Commission rule or
Order.
13. Successors and Assigns. SANYO agrees that the provisions of this
Consent Decree shall be binding on its successors, assigns, and
transferees.
14. 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.
15. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
16. 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.
17. Authorized Representative. Each party represents and warrants to the
other that it has full power and authority to enter into this Consent
Decree.
18. 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
________________________________
Joe Keeton
Vice President
SANYO TV International Corporation d/b/a/ SANYO Manufacturing Company
________________________________
Date
________________________________
Paul W. D'Arcy
Executive Vice President
SANYO Fisher Company, a division of SANYO North America Corporation
________________________________
Date
47 U.S.C. S: 330(c).
47 C.F.R. S: 15.120(d)(2).
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).
See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
Enforcement Bureau to Sanyo North America Corporation (August 9, 2007)
("August 9, 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).
See August 9, 2007 LOI.
See Letter from Alan G. Fishel, Esq. and Jeffrey E. Rummel, Esq., Counsel
for SANYO TV International Corporation d/b/a SANYO Manufacturing
Corporation and SANYO Fisher Company, a division of SANYO North America
Corporation, to Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
Enforcement Bureau (November 15, 2007).
See Letter from Alan G. Fishel, Esq. and Jeffrey E. Rummel, Esq., Counsel
for SANYO TV International Corporation d/b/a SANYO Manufacturing
Corporation and SANYO Fisher Company, a division of SANYO North America
Corporation, to Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
Enforcement Bureau (December 13, 2007); Letter from Alan G. Fishel and
Jeffrey E. Rummel, Counsel for SANYO TV International Corporation d/b/a
SANYO Manufacturing Corporation and SANYO Fisher Company, a division of
SANYO North America Corporation, to Marlene H. Dortch, Secretary, Federal
Communications Commission (March 27, 2008); Letter from Alan G. Fishel and
Jeffrey E. Rummel, Counsel for SANYO TV International Corporation d/b/a
SANYO Manufacturing Corporation and SANYO Fisher Company, a division of
SANYO North America Corporation, to Marlene H. Dortch, Secretary, Federal
Communications Commission (April 3, 2008).
Federal Communications Commission DA 08-845
2
Federal Communications Commission DA 08-845