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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                        )                                
                                                                         
                                        )                                
                                            File No.: EB-10-SE-053       
     In the Matter of                   )                                
                                            NAL/Acct. No.: 201132100028  
     PreSonus Audio Electronics, Inc.   )                                
                                            FRN No.: 0020540134          
                                        )                                
                                                                         
                                        )                                


                                     ORDER

   Adopted: April 28, 2011 Released: April 28, 2011

   By the Chief, Enforcement Bureau:

    1. In this Order, we adopt the attached Consent Decree entered into
       between the Enforcement Bureau ("Bureau") and PreSonus Audio
       Electronics, Inc. ("PreSonus"). The Consent Decree terminates an
       investigation initiated by the Bureau regarding PreSonus's compliance
       with  section 302(b) of the Communications Act of 1934, as amended
       ("Act"), and sections 2.803, 2.1203, 15.19, and 15.105 of the
       Commission's rules ("Rules") pertaining to the marketing of
       unauthorized Class B digital audio radio frequency devices.

    2. The Bureau and PreSonus have negotiated the terms of the Consent
       Decree that would resolve this matter. A copy of the Consent Decree is
       attached hereto and incorporated herein 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 PreSonus 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 a copy of this Order and Consent Decree
       shall be sent by first class mail and certified mail, return receipt
       requested, to counsel for PreSonus Audio Electronics, Inc., Tony Lin,
       Esq., Pillsbury Winthrop Shaw Pittman LLP, 2300 N Street, N.W.,
       Washington, D.C. 20037-1122, and to Stephen Fraser, Chief Operations
       Officer, PreSonus Audio Electronics, Inc., 7257 Florida Blvd., Baton
       Rouge, LA 70806.

   FEDERAL COMMUNICATIONS COMMISSION

   P. Michele Ellison

   Chief, Enforcement Bureau

                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554

                             Washington, D.C. 20554


                                        )                               
                                                                        
                                        )                               
                                            File No. EB-10-SE-053       
     In the Matter of                   )                               
                                            NAL/Acct. No. 201132100028  
     PreSonus Audio Electronics, Inc.   )                               
                                            FRN No. 0020540134          
                                        )                               
                                                                        
                                        )                               


                                 CONSENT DECREE

   The Enforcement Bureau of the Federal Communications Commission and
   PreSonus Audio Electronics, Inc., by their authorized representatives,
   hereby enter into this Consent Decree for the purpose of terminating the
   Enforcement Bureau's investigation into possible violations of section
   302(b) of the Communications Act of 1934, as amended, and sections 2.803,
   2.1203, 15.19, and 15.105 of the Commission's rules pertaining to the
   marketing of unauthorized Class B digital audio radio frequency ("RF")
   devices.

   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. "Communications Laws" means the Act, the Rules and the published and
       promulgated orders and decisions of the Commission.

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

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

    h. "Investigation" means the investigation commenced by the Bureau's July
       12, 2010 letter of inquiry pertaining to possible violations by
       PreSonus of section 302(b) of the Act and sections 2.803, 2.1203,
       15.19, and 15.105 of the Rules  by marketing unauthorized Class B
       digital audio RF devices within the United States.

    i. "Parties" means PreSonus and the Bureau, each of which is a "Party".

    j. "PreSonus" means PreSonus Audio Electronics, Inc., its
       predecessors-in-interest and successors-in-interest.

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

   II. Background

    2. Under section 302(b) of the Act and section 2.803(a) of the Rules, the
       Commission prohibits the marketing of RF devices in the United States
       unless the devices comply with the applicable administrative,
       technical, labeling and identification requirements of the Rules.
       Under section 15.101(a) of the Rules, parties responsible for
       unintentional radiators, such as the Class B digital audio RF devices
       marketed by PreSonus, must, in general, authorize the devices through
       the verification or declaration of conformity procedures. To be
       authorized, these devices must comply with the radiated emission
       limits specified in section 15.107 of the Rules, and - because these
       devices are designed to be connected to the public utility (AC) power
       line - the conducted limits specified in section 15.109 of the Rules.
       In addition, these devices must comply with certain labeling
       requirements under section 15.19 of the Rules. Under section 15.105 of
       the Rules, the manual for these devices must include a specified
       statement regarding interference. Under section 2.1203 of the Rules,
       an importer of these devices must declare the conditions under which
       they are admissible into the United States.

    3. On July 12, 2010, the Bureau issued the LOI to PreSonus. The LOI
       directed PreSonus to respond to a series of questions regarding its
       apparent marketing of certain digital audio devices. PreSonus
       responded to the LOI on September 10, 2010. PreSonus and the Bureau
       entered into a Tolling Agreement on October 19, 2010.

   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. PreSonus 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 Effective Date as defined herein. 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 the
       Investigation. In consideration for the termination of said
       Investigation, PreSonus 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, 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 PreSonus concerning the matters that were the subject
       of the Investigation. The Bureau also agrees that in the absence of
       new material evidence it will not use the facts developed in this
       Investigation through the Effective Date, 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 PreSonus
       with respect to PreSonus's basic qualifications, including its
       character qualifications, to be a Commission licensee or to hold
       Commission licenses or authorizations.

    8. Compliance Plan.  For purposes of settling the matters set forth
       herein, PreSonus agrees that within sixty (60) calendar days after the
       Effective Date it shall (i) implement a Compliance Plan relating to
       future compliance with the Communications Laws, including section
       302(b) of the Act, sections 2.803, 2.1203, 15.19, and 15.105 of the
       Rules, and other Rules, Commission orders or statutory requirements
       governing the authorization and marketing of RF devices; (ii)
       establish and maintain standard, internal operating procedures and
       policies that PreSonus shall follow to ensure compliance with such
       requirements ("Operating Procedures"); and (iii) incorporate such
       Operating Procedures in its Compliance Manual pursuant to paragraph
       8(b) below. The Compliance Plan shall include, at a minimum, the
       following components:

     a. Compliance Officer. Within thirty (30) calendar days after the
        Effective Date, PreSonus shall designate a senior corporate manager
        to serve as a Compliance Officer. The Compliance Officer shall be
        responsible for administering the Compliance Plan and shall be
        familiar with the FCC's Rules relating to the authorization and
        marketing of RF devices, including all applicable technical and
        administrative requirements.

     b. Compliance Manual. The Compliance Officer shall develop and
        distribute a Compliance Manual to all employees of PreSonus and
        others who perform duties on its behalf that trigger or may trigger
        compliance-related responsibilities under section 302(b) of the Act,
        sections 2.803, 2.1203, 15.19, or 15.105 of the Rules, and any other
        Rules, Commission orders or statutory requirements governing the
        authorization and marketing of RF devices (each a "Covered
        Employee"). The Compliance Manual shall describe (i) the Commission's
        equipment authorization and marketing requirements; and (ii) the
        Operating Procedures that PreSonus will follow to ensure compliance
        with such requirements. PreSonus shall periodically review and, to
        the extent necessary, revise the Compliance Manual to ensure that it
        remains current and complete. PreSonus shall distribute any revisions
        to the Compliance Manual promptly to all Covered Employees.

     c. Compliance Training. Within sixty (60) calendar days after the
        Effective Date, PreSonus shall establish and implement a training
        program on compliance with section 302(b) of the Act, sections 2.803,
        2.1203, 15.19, and 15.105 of the Rules, and other Rules, Commission
        orders or statutory requirements governing the authorization and
        marketing of RF devices ("Training Program"). The Training Program
        will be provided to all Covered Employees. Any person who becomes a
        Covered Employee at any time after the initial Training Program
        session shall be provided such training within thirty (30) calendar
        days after the date such person becomes a Covered Employee. PreSonus
        shall conduct the Training Program on an annual basis, and shall
        periodically review and, to the extent necessary, revise the Training
        Program to ensure that it remains current and complete, and to
        enhance its effectiveness.

     d. Reporting Non-Compliance. PreSonus shall report any non-compliance
        with section 302(b) of the Act, or sections 2.803, 2.1203, 15.19, or
        15.105 of the Rules, to the Bureau within fifteen (15) calendar days
        after the discovery of such non-compliance. Such reports shall
        include a detailed explanation of (i) each instance of
        non-compliance; (ii) the steps that PreSonus has taken or will take
        to remedy such non-compliance; (iii) the schedule on which such
        remedial actions will be taken; and (iv) the steps that PreSonus has
        taken or will take to prevent the recurrence of any such
        non-compliance. All such reports of non-compliance shall be submitted
        to Chief, Spectrum Enforcement Division, Enforcement Bureau, Federal
        Communications Commission, 445 12th Street, S.W., Washington, D.C.
        20554, with a copy submitted electronically to Nissa.Laughner@fcc.gov
        and to Neal.McNeil@fcc.gov.

     e. Compliance Reports. PreSonus shall file Compliance Reports with the
        Commission ninety (90) calendar days after the Effective Date, twelve
        (12) months after the Effective Date and twenty-four (24) months
        after the Effective Date.

   (i) Each compliance report shall provide a detailed description of
   PreSonus' efforts during the relevant period to comply with the terms and
   conditions of this Consent Decree and the Commission's requirements
   relating to the authorization and marketing of RF devices. In addition,
   each Compliance Report shall include a certification by the Compliance
   Officer, as an agent of and on behalf of PreSonus, stating that the
   Compliance Officer has personal knowledge that PreSonus (A) has
   established and implemented the Compliance Plan; (B) has utilized the
   Operating Procedures since the implementation of the Compliance Plan; and
   (C) is not aware of any instances of non-compliance with the terms and
   conditions of this Consent Decree, including the reporting obligations set
   forth in paragraph 8(d) hereof.

   (ii) The certification shall be accompanied by a statement explaining the
   basis for the Compliance Officer's certification and must comply with
   section 1.16 of the Rules and be subscribed to as true under penalty of
   perjury in substantially the form set forth therein.

    i. If the Compliance Officer cannot provide the requisite certification,
       the Compliance Officer, as an agent of and on behalf of PreSonus,
       shall provide the Commission with a detailed explanation of (A) each
       instance of non-compliance; (B) the steps that PreSonus has taken or
       will take to remedy such non-compliance, including the schedule on
       which proposed remedial actions will be taken; and (C) the steps that
       PreSonus has taken or will take to prevent the recurrence of any such
       non-compliance, including the schedule on which such preventive action
       will be taken.

    ii. 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, with a
        copy submitted electronically to Nissa.Laughner@fcc.gov and to
        Neal.McNeil@fcc.gov.

     f. Termination Date. Unless stated otherwise, the requirements of this
        paragraph 8 of the Consent Decree shall expire twenty-four (24)
        months after the Effective Date.

    9. Voluntary Contribution.  PreSonus agrees that it will make a voluntary
       contribution to the United States Treasury in the amount of one
       hundred twenty five thousand dollars ($125,000). The payment must be
       made within thirty (30) calendar days after the Effective Date. 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 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). PreSonus must also send
       electronic notification to Nissa.Laughner@fcc.gov and to
       Neal.McNeil@fcc.gov on the date said payment is made.

   10. Waivers.  PreSonus 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. PreSonus 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 PreSonus nor the Commission shall contest the
       validity of the Consent Decree or the Adopting Order, and PreSonus
       shall waive any statutory right to a trial de novo. PreSonus hereby
       agrees to waive any claims it may 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 PreSonus does not expressly
       consent) that provision will be superseded by such Rule or order.

   13. Successors and Assigns. PreSonus 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 with
       respect to the matters set forth herein. 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, the
       Rules or the Commission's 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.  The individual signing this Consent Decree
       on behalf of PreSonus represents and warrants that he is authorized by
       PreSonus to execute this Consent Decree and to bind this company to
       the obligations set forth herein. The FCC signatory represents that
       she is signing this agreement in her official capacity and that she is
       authorized to execute 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.

   ____________________________

   P. Michele Ellison

   Chief, Enforcement Bureau

   ____________________________

   Date

   ____________________________

   Stephen Fraser

   Chief Operations Officer

   PreSonus Audio Electronics, Inc.

   ____________________________

   Date

   +-+
   +-+

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

   47 C.F.R. S:S: 2.803, 2.1203, 15.19, 15.105.

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

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

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

   47 C.F.R. S:S: 2.803, 2.1203, 15.19, and 15.105.

   See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   Enforcement Bureau, Federal Communications Commission, to Rick Naqvi, Vice
   President, Sales and Marketing, PreSonus Audio Electronics, Inc. (July 12,
   2010) ("LOI").

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

   Section 2.803(e)(4) of the Rules defines "marketing" as including the
   "sale or lease, or offering for 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).

   Section 2.801 of the Rules defines "radio frequency device" as "any device
   which in its operation is capable of emitting radio-frequency energy by
   radiation, conduction, or other means." 47 C.F.R. S: 2.801.

   47 C.F.R. S: 15.101(a).

   See 47 C.F.R. S: 2.909(b), (c).

   Section 15.3(z) of the Rules defines "unintentional radiator" as "a device
   that intentionally generates radio frequency energy for use within the
   device, or that sends radio frequency signals by conduction to associated
   equipment via connecting wiring, but which is not intended to emit RF
   energy by radiation or induction." 47 C.F.R. S: 15.3(z).

   Section 15.3(i) of the Rules defines "Class B digital device" as "a
   digital device that is marketed for use in a residential environment
   notwithstanding use in commercial, business and industrial environments."
   47 C.F.R. S: 15.3(i).

   See 47 C.F.R. S: 2.902.

   See 47 C.F.R. S: 2.906.

   47 C.F.R. S: 15.107.

   47 C.F.R. S: 15.109.

   47 C.F.R. S: 15.19.

   47 C.F.R. S: 15.105.

   47 C.F.R. S: 2.1203; see also 47 C.F.R. S:S: 2.1204, 2.1205.

   See LOI, supra note 3.

   See Letter from Clifford M. Harrington and Tony Lin, Counsel for PreSonus
   Audio Electronics, Inc. to Nissa Laughner, Spectrum Enforcement Division,
   Enforcement Bureau, Federal Communications Commission (September 10,
   2010).

   Tolling Agreement, File No. EB-10-SE-053, executed by and between Kathryn
   S. Berthot, Chief, Spectrum Enforcement Division, Enforcement Bureau,
   Federal Communications Commission, and Jim Mack, Chief Executive Officer,
   PreSonus Audio Electronics, Inc. (October 19, 2010). The Parties entered
   into a Tolling Agreement Extension on March 8, 2011. Tolling Agreement
   Extension, File No. EB-10-SE-053, executed by and between Ricardo M.
   Durham, Acting Chief, Spectrum Enforcement Division, Enforcement Bureau,
   Federal Communications Commission, and Stephen Fraser, Chief Operations
   Officer, PreSonus Audio Electronics, Inc. (March 8, 2011). The Parties
   entered into a second Tolling Agreement Extension on April 11, 2011.
   Tolling Agreement Extension, File No. EB-10-SE-053, executed by and
   between John D. Poutasse, Acting Chief, Spectrum Enforcement Division,
   Enforcement Bureau, Federal Communications Commission, and Stephen Fraser,
   Chief Operations Officer, PreSonus Audio Electronics, Inc. (April 11,
   2011).

   Federal Communications Commission DA 11-754

   2

   Federal Communications Commission DA 11-754