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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                              )                           
                                                          
                              )   File No. EB-08-SE-1046  
     In the Matter of                                     
                              )   Acct. No. 200932100073  
     Pinnacle Systems, Inc.                               
                              )   FRN No. 0004897468      
                                                          
                              )                           


                                     ORDER

   Adopted: July 28, 2009 Released: July 30, 2009

   By the Chief, Enforcement Bureau:

    1. In this Order, we adopt the attached Consent Decree entered into
       between the Enforcement Bureau ("Bureau") and Pinnacle Systems, Inc.
       ("Pinnacle"). The Consent Decree terminates an investigation by the
       Bureau against Pinnacle for possible violations of section 330(c) of
       the Communications Act of 1934, as amended, (the "Act") 47 U.S.C. S:
       330(c) and section 15.120(d)(2) of the Commission's Rules ("Rules"),
       47 C.F.R. S: 15.120(d)(2), regarding the interstate shipment, after
       January 30, 2008, of personal computer digital television tuners that
       do not comply with V-Chip technology requirements.

    2. The Bureau and Pinnacle 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 Pinnacle 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 all third-party complaints against Pinnacle
       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 a copy of this Order and Consent Decree
       shall be sent by first class mail and certified mail, return receipt
       requested, to Gary G. Greenfield, Chairman and CEO, Avid Technology,
       Inc., Avid Technology Park, 1 Park West, Tewksbury, MA 01876, and to
       counsel for Avid, Jack N. Goodman, Esq.,  Wilmer Hale, 1875
       Pennsylvania Avenue, NW, Washington, DC 20006.

   FEDERAL COMMUNICATIONS COMMISSION

   Kris Anne Monteith

   Chief, Enforcement Bureau

                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                              )                           
                                                          
                              )   File No. EB-08-SE-1046  
     In the Matter of                                     
                              )   Acct. No. 200932100073  
     Pinnacle Systems, Inc.                               
                              )   FRN No. 0004897468      
                                                          
                              )                           


                                 CONSENT DECREE

   The Enforcement Bureau ("Bureau") and Pinnacle Systems, Inc. ("Pinnacle"),
   by their authorized representatives, hereby enter into this Consent Decree
   for the purpose of terminating the Bureau's investigation into whether
   Pinnacle violated section 330(c) of the Communications Act of 1934, as
   amended (the "Act"), and section 15.120(d)(2) of the Commission's rules,
   regarding the interstate shipment, after January 30, 2008, of personal
   computer digital television tuners ("PCTV tuners") that do not comply with
   the V-Chip technology requirements because they lack the ability to block
   programs from viewing based on ratings or 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. "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. "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.

    f. "Compliance Plan" means the program described in this Consent Decree
       at paragraph 8.

    g. "Personal computer digital television tuners" or "PCTV tuners" means
       devices, sold without associated display screens, that are designed to
       receive digital television signals for viewing on personal computers.

    h. "Effective Date" means the date on which the Bureau releases the
       Adopting Order.

    i. "Investigation" means the investigation commenced by the Bureau's
       October 20, 2008 Letter of Inquiry ("LOI") regarding whether Pinnacle
       violated section 330(c) of the Act, and Section 15.120(d)(2) of the
       Rules, by shipping interstate PCTV tuners that do not comply with the
       V-Chip technology requirements because they lack the ability to block
       programs from viewing based on ratings or to adapt to new rating
       systems.

    j. "Parties" means Pinnacle and the Bureau.

    k. "Pinnacle" means Pinnacle Systems, Inc. and its
       predecessors-in-interest and successors-in-interest.

    l. "Rules" means the Commission's regulations found in Title 47 of the
       Code of Federal Regulations.

   II. BACKGROUND

    2. 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 program blocking ("V-Chip")
       requirements prescribed by the Commission pursuant to its authority
       under section 303(x) of the Act. In 1998, the Commission adopted
       V-Chip requirements for both analog and digital television ("DTV")
       receivers. In 2004, the Commission adopted specific technical
       standards to implement V-Chip functionality for DTV receivers. In
       addition to adopting the V-Chip technical standards, the Commission
       also applied the programming blocking requirements to DTV tuners sold
       without associated display screens, effective January 30, 2008.

    3. On October 20, 2008, the Bureau issued an LOI to Pinnacle. The LOI
       directed Pinnacle, among other things, to submit a sworn written
       response to a series of questions relating to the interstate shipment
       of PCTV tuners in potential violation of the requirement of Section
       15.120(d)(2) of the Commission's Rules that they be able 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.
       Pinnacle responded to the LOI on November 19, 2008. Pinnacle's
       response indicated the interstate shipment of a number of potentially
       non-compliant units. Pinnacle has subsequently informed the Bureau
       that it is no longer shipping PCTV tuners in interstate commerce for
       distribution to the public.

   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. Pinnacle 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 Complaint. In consideration for the
       termination of said investigation and dismissal of the Complaint,
       Pinnacle 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 Pinnacle 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 Pinnacle with respect to
       Pinnacle's basic qualifications, including its character
       qualifications, to be a Commission licensee or hold Commission
       authorizations.

    8. Compliance Plan. For purposes of settling the matters set forth
       herein,  Pinnacle has taken the following steps to ensure compliance
       with the Act, the Commission's Rules, and the Commission's Orders:

    a. Compliance Officer. Pinnacle will designate a Compliance Officer who
       will be responsible for implementing and administering the remedial
       measures.

    b. Remedial Measures. Pinnacle has notified customers who registered
       certain models of PCTV tuners that it will provide, depending on the
       model, (i) a software patch for the TV Center Pro software, or (ii) a
       software patch for the Elgato EyeTV Lite software, which was released
       on January 19, 2009, and is currently available directly from the
       Elgato web site. Pinnacle also provides customers using non-updated
       software electronic notifications of the availability of these
       software patches when they initially install the PCTV software, when
       they initially run the PCTV software, and each time they run the PCTV
       software if their computers are connected to the Internet. Both the TV
       Center Pro and the Elgato EyeTV Lite software patches are available
       for automatic downloading at no cost. Pinnacle has also posted a
       notification on its website and has made the software patch available
       on its website as well. Pinnacle will make the TV Center Pro software
       patch available until twenty-four (24) months from the Effective Date
       of this Consent Decree. 

    c. Compliance Reports. Pinnacle 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 Pinnacle, stating that the officer has
       personal knowledge that Pinnacle has implemented the remedial measures
       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. All reports shall also be submitted electronically to Holly
       Berland at Holly.Berland@fcc.gov and to Kathy Berthot at
       Kathy.Berthot@fcc.gov.

    d. Termination. Unless stated otherwise, the requirements of this Consent
       Decree will expire twenty-four (24) months from the Effective Date.

    9. Voluntary Contribution. Pinnacle agrees that it will make a voluntary
       contribution to the United States Treasury in the amount of $25,000
       (Twenty-Five Thousand Dollars). 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). Pinnacle shall also send
       electronic notification on the date said payment is made to Holly
       Berland at Holly.Berland@fcc.gov and to Kathy Berthot at
       Kathy.Berthot@fcc.gov.

   10. Waivers. Pinnacle 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. Pinnacle 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 Pinnacle nor the Commission shall contest the validity of
   the Consent Decree or the Adopting Order, and Pinnacle shall waive any
   statutory right to a trial de novo. Pinnacle 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. 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.

   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 Pinnacle does not expressly
       consent) that provision will be superseded by such Commission rule or
       Order.

   13. Successors and Assigns. Pinnacle 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. The
       Parties agree that this Consent Decree is for settlement purposes only
       and that, by agreeing to this Consent Decree, Pinnacle does not admit
       or deny noncompliance, violation or liability for violating the Act or
       Rules in connection with the matters that are the subject of this
       Consent Decree.

   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                               
                                        
     ________________________________   
                                        
     Paige Parisi                       
                                        
     Secretary                          
                                        
     Pinnacle Systems, Inc.             
                                        
     ________________________________   
                                        
     Date                               


   Pinnacle is a subsidiary of Avid Technology, Inc.

   47 U.S.C. S: 154(i).

   47 C.F.R. S:S: 0.111, 0.311.

   Pinnacle is a subsidiary of Avid Technology, Inc.

   47 U.S.C. S: 330(c).

   47 C.F.R. S: 15.120(d)(2).

   See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   Enforcement Bureau to Ms. Patti S. Hart, President and Chief Executive
   Officer, Pinnacle Systems, Inc. (October 20, 2008).

   47 U.S.C. S: 330(c); 47 C.F.R. S: 15.201(d)(2).

   Since the issuance of the LOI, Pinnacle sold the division which produced
   and marketed PCTV tuners, and no longer manufactures or markets such
   devices.

   47 U.S.C. S: 330(c).

   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).

   Second Periodic Review of the Commission's Rules and Policies Affecting
   the Conversion to Digital Television, Report and Order, 19 FCC Rcd 18279
   (2004).

   Id. at 18348 P: 158.

   See Rules and Regulations, Federal Communications Commission, Parts 15, 73
   and 76, Third Periodic Review of the Commission's Rules and Policies
   Affecting the Conversion to Digital Television, 73 Fed. Reg. 5634, 5682
   (Jan. 30, 2008).

   See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   Enforcement Bureau to Ms. Patti S. Hart, President and Chief Executive
   Officer, Pinnacle Systems, Inc. (October 20, 2008).

   See Letter from Jack N. Goodman, Wilmer Cutler Pickering Hale and Dorr
   LLP, to Marlene Dortch, Secretary, Federal Communications Commission
   (November 19, 2008).

   See Letter from Jack N. Goodman, Wilmer Cutler Pickering Hale and Dorr
   LLP, to Marlene Dortch, Secretary, Federal Communications Commission
   (December 4, 2008).

   Since the Elgato EyeTV Lite software is not provided by Pinnacle, it
   cannot provide any assurances of the future availability of the patch for
   that software product.

   Federal Communications Commission DA 09-1645

   2

   Federal Communications Commission DA 09-1645