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                                January 6, 2010

   VIA CERTIFIED MAIL - RETURN RECEIPT REQUESTED

   AND FACSIMILE AT (845) 369-0888

   SCS Enterprises Inc.

   d/b/a Spy Camera Specialists, Inc.

   ATTN: Kenneth Lee

   6 Fortune Way

   Suffern, NY 10901-3834

   Re: File No. EB-08-SE-142

   Dear Mr. Lee:

   This is an official CITATION, issued to SCS Enterprises, Inc., d/b/a Spy
   Camera Specialists, Inc. ("Spy Camera"), pursuant to Section 503(b)(5) of
   the Communications Act of 1934, as amended ("Act"), for marketing
   unauthorized radio frequency devices in the United States in violation of
   Section 302(b) of the Act, and Sections 2.803 and 15.205(a) of the
   Commission's Rules ("Rules"). As explained below, future violations of the
   Commission's rules in this regard may subject your company to monetary
   forfeitures.

   In March 2008, the Spectrum Enforcement Division of the Enforcement Bureau
   ("Division") received a complaint alleging that Spy Camera was marketing
   unauthorized wireless video transmitters that operate in the 1.08, 1.12,
   1.16 and 1.2 GHz bands. We initiated an investigation and on May 13, 2008,
   we sent a Letter of Inquiry ("LOI") to Spy Camera. In your June 9, 2008
   response to our LOI, you admit marketing wireless video transmitters
   beginning in early 2006 on your web site, www.spycameras.com, to end users
   and resellers. You admit that these wireless video transmitters all
   operate on 1.2 GHz, which is a restricted frequency band under 15.205(a)
   of the Rules. You also state that you were surprised to learn that these
   devices could not be marketed in the United States, and upon receipt of
   our LOI, immediately returned all the 1.2 GHz transmitters in stock to
   your supplier and ceased all purchase and sales of such devices. On
   December 12, 2009, Division personnel observed that Spy Camera no longer
   sells 1.2 GHz wireless video transmitters on its web site.

   Section 302(b) of the Act provides that "[n]o person shall manufacture,
   import, sell, offer for sale, or ship devices or home electronic equipment
   and systems, or use devices, which fail to comply with regulations
   promulgated pursuant to this section." Section 2.803(a)(1) of the
   Commission's implementing regulations provides that:

   [N]o person shall sell or lease, or offer for sale or lease (including
   advertising for sale or lease), or import, ship, or distribute for the
   purpose of selling or leasing or offering for sale or lease, any radio
   frequency device unless ... [i]n the case of a device subject to
   certification, such device has been authorized by the Commission in
   accordance with the rules in this chapter and is properly identified and
   labeled as required by S: 2.925 and other relevant sections in this
   chapter.

   Additionally, Section 2.803(g) of the Rules, provides in pertinent part
   that:

   [R]adio frequency devices that could not be authorized or legally operated
   under the current rules ... shall not be operated, advertised, displayed,
   offered for sale or lease, sold or leased, or otherwise marketed absent a
   license issued under part 5 of this chapter or a special temporary
   authorization issued by the Commission.

   Intentional radiators, such as the wireless video transmitters marketed by
   Spy Camera, are generally required by Section 15.201 of the Rules, to be
   approved through the certification procedures described in Sections 2.1031
   - 2.1060 of the Rules prior to marketing within the United States.
   However, the wireless video transmitters marketed by Spy Camera operate on
   1.2 GHz, a restricted frequency band listed in Section 15.205(a) of the
   Rules. Therefore, these devices do not comply with the FCC's technical
   standards and cannot be certified or marketed within the United States.

   Accordingly, it appears Spy Camera Specialists, Inc. has violated Section
   302(b) of the Act and Sections 2.803 and 15.205(a) of the Rules by
   marketing in the United States video transmitter devices not eligible for
   certification.

   If, after receipt of this citation, you violate the Communications Act or
   the Commission's Rules in any manner described herein, the Commission may
   impose monetary forfeitures not to exceed $16,000 for each such violation
   or each day of a continuing violation.

   You may respond to this citation within 30 days from the date of this
   letter either through (1) a personal interview at the Commission's Field
   Office nearest to your place of business, or (2) a written statement. Your
   response should specify the actions that you are taking to ensure that you
   do not violate the Commission's rules governing the marketing of radio
   frequency equipment in the future.

   The nearest Commission field office appears to be the New York District
   Office, in New York, New York. Please call Peter Waltonen, Esq., at (202)
   418-0097 if you wish to schedule a personal interview. You should schedule
   any interview to take place within 30 days of the date of this letter. You
   should send any written statement within 30 days of the date of this
   letter to:

   Kathryn Berthot

   Chief, Spectrum Enforcement Division

   Enforcement Bureau

   Federal Communications Commission

   445-12th Street, S.W., Rm. 3-C366

   Washington, D.C. 20554

   Under the Privacy Act of 1974, 5 U.S.C. S: 552(a)(e)(3), we are informing
   you that the Commission's staff will use all relevant material information
   before it, including information that you disclose in your interview or
   written statement, to determine what, if any, enforcement action is
   required to ensure your compliance with the Communications Act and the
   Commission's rules.

   The knowing and willful making of any false statement, or the concealment
   of any material fact, in reply to this citation is punishable by fine or
   imprisonment.

   Thank you in advance for your anticipated cooperation.

   Sincerely,

   Kathryn Berthot

   Chief, Spectrum Enforcement Division

   Enforcement Bureau

   Federal Communications Commission

   47 U.S.C. S: 503(b)(5).

   47 U.S.C. S: 302a(b).

   47 C.F.R. S:S: 2.803 and 15.205(a).

   See Letter from Kathryn S. Berthot, Esq., Chief, Spectrum Enforcement
   Division, Enforcement Bureau, Federal Communications Commission, to
   Kenneth Lee, Spy Camera Specialists, (May 13, 2008).

   See Letter from Kenneth Lee, Spy Camera Specialists, to Spectrum
   Enforcement Division, Enforcement Bureau, Federal Communications
   Commission (June 9, 2008) ("Response").

   Section 2.803(e)(4) of the Rules defines "marketing" as "the sale or
   lease, or offering to sale or lease, including advertising for sale or
   lease, or importation, shipment or distribution for the purpose of selling
   or leasing or offering for sale or lease" 47 C.F.R. S: 2.803(e)(4).

   See Response at 2.

   47 C.F.R. S: 2.803.

   An intentional radiator is "[a] device that intentionally generates and
   emits radio frequency energy by radiation or induction." 47 C.F.R.
   S:15.3(o).

   See 47 C.F.R. S: 15.201.

   A certification is an equipment authorization issued by the Commission
   based on representations and test data submitted by the applicant. See 47
   C.F.R. S: 2.907(a).

   47 C.F.R. S:S: 2.1031 - 2.1060.

   47 C.F.R. S: 15.205(a). Section 15.205(a) allows intentional radiators to
   transmit only spurious emissions in the restricted frequency bands. 47
   C.F.R. S: 2.1 defines spurious emissions as "[e]missions on a frequency or
   frequencies which are outside the necessary bandwidth and the level of
   which may be reduced without affecting the corresponding transmission of
   information. Spurious emissions include harmonic emissions, parasitic
   emissions, intermodulation products and frequency conversion products, but
   exclude out-of-band emissions." The video transmitters listed in your
   response intentionally transmit radio frequency energy on restricted
   frequencies.

   See 47 C.F.R. S: 1.80(b)(3).

   5U.S.C S: 552(a)(c)(2).

   See 18 U.S.C. S: 1001.

   Federal Communications Commission DA 09-2623

   1

   2

   Federal Communications Commission DA 09-2623

                       FEDERAL COMMUNICATIONS COMMISSION

                            WASHINGTON, D.C.  20554