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


                             )                            
                                                          
                             )   File No.: EB-10-SE-019   
     In the Matter of                                     
                             )   Acct. No.: 201232100032  
     Silicondust USA, Inc.                                
                             )   FRN: 0021901046          
                                                          
                             )                            


                                     ORDER

   Adopted: August 20, 2012 Released: August 20, 2012

   By the Chief, Enforcement Bureau:

    1. In this Order, we adopt the attached Consent Decree entered into
       between the Enforcement Bureau (Bureau) of the Federal Communications
       Commission (Commission) and Silicondust USA, Inc. (Silicondust). The
       Consent Decree resolves and terminates the Bureau's investigation into
       Silicondust's compliance with Section 302(b) of the Communications Act
       of 1934, as amended (Act), and Sections 2.803 and 15.19 of the
       Commission's rules (Rules) pertaining to the marketing of television
       broadcast receivers.

    2. The Bureau and Silicondust have negotiated the Consent Decree that
       resolves 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 Silicondust 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 Sections 4(i) and 503(b)
       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 Theodore D. Head, President and CEO, Silicondust USA,
       Inc., 5662 La Ribera St., Suite C, Livermore, CA 94550, and to
       Stephanie Blair, Esq., and Otto Lee, Esq., counsel for Silicondust
       USA, Inc., Intellectual Property Law Group, LLP, 12 South First
       Street, 12th Floor, San Jose, CA 95113.

   FEDERAL COMMUNICATIONS COMMISSION

   P. Michele Ellison

   Chief, Enforcement Bureau

                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                             )                            
                                                          
                             )   File No.: EB-10-SE-019   
     In the Matter of                                     
                             )   Acct. No.: 201232100032  
     Silicondust USA, Inc.                                
                             )   FRN: 0021901046          
                                                          
                             )                            


                                 CONSENT DECREE

   The Enforcement Bureau of the Federal Communications Commission and
   Silicondust USA, 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 and 15.19 of
   the Commission's rules pertaining to the marketing of television broadcast
   receivers.

   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. "Communications Laws" means collectively, the Act, the Rules, and the
       published and promulgated orders and decisions of the Commission to
       which Silicondust is subject by virtue of its business activities,
       including but not limited to, the Equipment Marketing Rules.

    e. "Commission" and "FCC" mean the Federal Communications Commission and
       all of its bureaus and offices.

    f. "Compliance Plan" means the compliance obligations, programs, and
       procedures described in this Consent Decree at paragraph 9.

    g. "Covered Employees" means all employees and agents of Silicondust who
       perform, or supervise, oversee, or manage the performance of, duties
       that relate to Silicondust's responsibilities under the Equipment
       Marketing Rules.

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

    i. "Equipment Marketing Rules" means Section 302(b) of the Act and
       Sections 2.803 and 15.19 of the Rules and other Communications Laws
       governing the marketing of radio frequency devices within the United
       States and its territories.

    j. "Investigation" means the investigation commenced by the Bureau's
       March 18, 2010, letter of inquiry regarding whether the marketing of
       certain digital television receivers by Silicondust complies with the
       Equipment Marketing Rules.

    k. "Operating Procedures" means the standard, internal operating
       procedures and compliance policies established by Silicondust to
       implement the Compliance Plan.

    l. "Parties" means Silicondust and the Bureau, each of which is a
       "Party."

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

    n. "Silicondust" means Silicondust USA, Inc., and its
       predecessors-in-interest and successors-in-interest.

   II. BACKGROUND

     1. Pursuant to Section 302(b) of the Act and Section 2.803 of the Rules,
        certain unintentional radiators may not be marketed in the United
        States unless the devices comply with the applicable technical
        standards as well as the administrative requirements relating to
        equipment labeling and consumer disclosure. Silicondust imports and
        markets a broadcast television receiver, the HD HomeRun television
        tuner model, that is designed to connect directly to a television
        antenna and to a computer for the purpose of delivering digital
        television to the monitor of a personal computer. As an unintentional
        radiator, this device is subject to authorization via the
        Commission's equipment verification procedures. Devices subject to
        the verification procedures must, among other requirements, be
        labeled in accordance with Section 15.19 of the Rules. Under Section
        15.19(a)(1) of the Rules, receivers operating in the broadcast
        services must be labeled, in a conspicuous location, with the
        following statement: "This device complies with part 15 of the FCC
        Rules. Operation is subject to the condition that this device does
        not cause harmful interference." As the importer of the device,
        Silicondust is responsible for the device's compliance with the
        applicable technical standards and administrative requirements,
        including Section 15.19 of the Rules.

     2. On March 18, 2010, the Bureau's Spectrum Enforcement Division issued
        a letter of inquiry (LOI) to Silicondust, directing the company to
        submit a sworn written response to a series of questions relating to
        Silicondust's manufacture, importation, and marketing of digital
        television receivers. Silicondust responded to the LOI on May 10,
        2010 (LOI Response). In its LOI Response, Silicondust submitted
        information and documentation relating to the HD HomeRun tuner model,
        including documentation demonstrating that the model had been
        properly verified before marketing. Silicondust acknowledged,
        however, that it had not included the language required by Section
        15.19(a)(1) of the Rules on the labels for this model because it
        mistakenly believed that the Rule did not apply to its HD HomeRun
        television tuner model. Silicondust subsequently submitted an
        affidavit certifying that as of April 14, 2010, its HD HomeRun
        television tuner model devices were labeled in accordance with
        Section 15.19(a)(1). Silicondust also reported that, upon receipt of
        the LOI, the company had updated the model's online instruction
        manual with the language set forth in Section 15.19(a)(1). The Bureau
        and Silicondust executed tolling agreements to toll the statute of
        limitations.

   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.

   5. Jurisdiction. Silicondust agrees that the Bureau has jurisdiction over
   it and the matters contained in this Consent Decree and that the Bureau
   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. As of the
   Effective Date, the Adopting Order and this Consent Decree shall have the
   same force and effect as any other order of the Commission. Any violation
   of the Adopting Order or of the terms of this Consent Decree shall
   constitute a separate violation of a Commission order, entitling the
   Commission 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 the Investigation, Silicondust 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 the 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 Silicondust 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 the
   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 Silicondust with respect to
   Silicondust's basic qualifications, including its character
   qualifications, to be a Commission licensee or to hold Commission licenses
   or authorizations.

   8. Compliance Officer. Within thirty (30) calendar days after the
   Effective Date, Silicondust shall designate a senior corporate manager
   with the requisite corporate and organizational authority to serve as
   Compliance Officer and to discharge the duties set forth below. The person
   designated as the Compliance Officer shall be responsible for developing,
   implementing, and administering the Compliance Plan and ensuring that
   Silicondust complies with the terms and conditions of the Compliance Plan
   and this Consent Decree. In addition to the general knowledge of the
   Communications Laws necessary to discharge his/her duties under this
   Consent Decree, the Compliance Officer shall have specific knowledge of
   the Equipment Marketing Rules prior to assuming his/her duties.

   9. Compliance Plan. For purposes of settling the matters set forth herein,
   Silicondust agrees that it shall within sixty (60) calendar days after the
   Effective Date, develop and implement a Compliance Plan designed to ensure
   future compliance with the Communications Laws and with the terms and
   conditions of this Consent Decree. With respect to the Equipment Marketing
   Rules, Silicondust shall implement the following procedures:

     a. Operating Procedures on Equipment Marketing. Within sixty (60)
        calendar days after the Effective Date, Silicondust shall establish
        Operating Procedures that all Covered Employees must follow to help
        ensure Silicondust's compliance with the Equipment Marketing Rules.
        Silicondust's Operating Procedures shall include internal procedures
        and policies specifically designed to ensure that all television
        broadcast receivers and all other radio frequency devices marketed by
        Silicondust have been properly authorized  (via the certification,
        verification, or declaration of conformity procedures, as
        applicable), comply with applicable technical standards, and comply
        with the applicable administrative requirements relating to equipment
        labeling and consumer disclosure.

     b. Compliance Manual.  Within sixty (60) calendar days after the
        Effective Date, the Compliance Officer shall develop and distribute a
        Compliance Manual to all Covered Employees. The Compliance Manual
        shall explain the Equipment Marketing Rules and set forth the
        Operating Procedures that Covered Employees shall follow to help
        ensure Silicondust's compliance with the Equipment Marketing Rules.
        Silicondust shall periodically review and revise the Compliance
        Manual as necessary to ensure that the information set forth therein
        remains current and complete. Silicondust shall distribute any
        revisions to the Compliance Manual promptly to all Covered Employees.

     c. Compliance Training Program. Silicondust shall establish and
        implement a Compliance Training Program on compliance with the
        Equipment Marketing Rules and the Operating Procedures. As part of
        the Compliance Training Program, Covered Employees shall be advised
        of Silicondust's obligation to report any noncompliance with the
        Equipment Marketing Rules under paragraph 10 of this Consent Decree
        and shall be instructed on how to disclose noncompliance to the
        Compliance Officer. All Covered Employees shall be trained pursuant
        to the Compliance Training Program within sixty (60) calendar days
        after the Effective Date,  except that any person who becomes a
        Covered Employee at any time after the Effective Date shall be
        trained within thirty (30) calendar days after the date such person
        becomes a Covered Employee. Silicondust shall repeat the compliance
        training on an annual basis and shall periodically review and revise
        the Compliance Training Program as necessary to ensure that it
        remains current and complete and to enhance its effectiveness.

   10. Reporting Noncompliance. Silicondust shall report any noncompliance
   with the Equipment Marketing Rules and with the terms and conditions of
   this Consent Decree within fifteen (15) calendar days after discovery of
   such noncompliance. Such reports shall include a detailed explanation of
   (i) each instance of noncompliance; (ii) the steps that Silicondust has
   taken or will take to remedy such noncompliance; (iii) the schedule on
   which such remedial actions will be taken; and (iv) the steps that
   Silicondust has taken or will take to prevent the recurrence of any such
   noncompliance. All reports of noncompliance shall be submitted to the
   Chief, Spectrum Enforcement Division, Enforcement Bureau, Federal
   Communications Commission, Room 3-C366, 445 12th Street, S.W. Washington,
   D.C. 20554, with a copy submitted electronically to Nissa Laughner at
   Nissa.Laughner@fcc.gov and to Ricardo Durham at Ricardo.Durham@fcc.gov.

   11. Compliance Reports. Silicondust 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.

    a. Each compliance report shall include a detailed description of
       Silicondust's efforts during the relevant period to comply with the
       terms and conditions of this Consent Decree and the Equipment
       Marketing Rules. In addition, each Compliance Report shall include a
       certification by the Compliance Officer, as an agent of and on behalf
       of Silicondust, stating that the Compliance Officer has personal
       knowledge that Silicondust (i) has established and implemented the
       Compliance Plan; (ii) has utilized the Operating Procedures since the
       implementation of the Compliance Plan; and (iii) is not aware of any
       instances of noncompliance with the terms and conditions of this
       Consent Decree, including the reporting obligations set forth in
       paragraph 10 hereof.

    b. The Compliance Officer's certification shall be accompanied by a
       statement explaining the basis for such 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.

    c. If the Compliance Officer cannot provide the requisite certification,
       the Compliance Officer, as an agent of and on behalf of Silicondust,
       shall provide the Commission with a detailed explanation of the
       reason(s) why and describe fully (i) each instance of noncompliance;
       (ii) the steps that Silicondust has taken or will take to remedy such
       noncompliance, including the schedule on which proposed remedial
       actions will be taken; and (iii) the steps that Silicondust has taken
       or will take to prevent the recurrence of any such noncompliance,
       including the schedule on which such preventive action will be taken.

    d. 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, with a copy
       submitted electronically to Nissa Laughner at Nissa.Laughner@fcc.gov
       and to Ricardo Durham at Ricardo.Durham@fcc.gov.

   12. Termination Date. Unless stated otherwise, the requirements of
       paragraphs 8 through 11 of this Consent Decree shall expire
       twenty-four (24) months after the Effective Date.

   13. Voluntary Contribution. Silicondust agrees that it will make a
       voluntary contribution to the United States Treasury in the amount of
       two thousand eight hundred dollars ($2,800) within thirty (30)
       calendar days after the Effective Date.  Silicondust shall also send
       electronic notification of payment to Nissa Laughner at
       Nissa.Laughner@fcc.gov, Ricardo Durham at Ricardo.Durham@fcc.gov, and
       Samantha Peoples at Sam.Peoples@fcc.gov on the date said payment is
       made. The payment must be made by check or similar instrument, wire
       transfer, or credit card, and must include the NAL/Account number and
       FRN referenced above. Regardless of the form of payment, a completed
       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).  Below are additional instructions you should
       follow based on the form of payment you select:

     * Payment by check or money order must be made payable to the order of
       the Federal Communications Commission.  Such payments (along with the
       completed Form 159) must be mailed to Federal Communications
       Commission, P.O. Box 979088, St. Louis, MO 63197-9000, or sent
       via overnight mail to U.S. Bank - Government Lockbox #979088,
       SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101. 

     * Payment by wire transfer must be made to ABA Number 021030004,
       receiving bank TREAS/NYC, and Account Number 27000001.  To complete
       the wire transfer and ensure appropriate crediting of the wired funds,
       a completed Form 159 must be faxed to U.S. Bank at (314) 418-4232 on
       the same business day the wire transfer is initiated. 

     * Payment by credit card must be made by providing the required credit
       card information on FCC Form 159 and signing and dating the Form 159
       to authorize the credit card payment. The completed Form 159 must then
       be mailed to Federal Communications Commission, P.O. Box 979088, St.
       Louis, MO 63197-9000, or sent via overnight mail to U.S. Bank -
       Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St.
       Louis, MO 63101. 

   If you have questions regarding payment procedures, please contact the
   Financial Operations Group Help Desk by phone, 1-877-480-3201, or by
   e-mail, ARINQUIRIES@fcc.gov. 

   14. Waivers. Silicondust 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 as defined herein. Silicondust 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 Silicondust nor the Commission shall contest
       the validity of the Consent Decree or of the Adopting Order, and
       Silicondust shall waive any statutory right to a trial de novo.
       Silicondust hereby agrees to waive any claims it may have under the
       Equal Access to Justice Act relating to the matters addressed in this
       Consent Decree.

   15. 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.

   16. 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 Silicondust does not expressly
       consent) that provision will be superseded by such Rule or Commission
       order.

   17. Successors and Assigns. Silicondust agrees that the provisions of this
       Consent Decree shall be binding on its successors, assigns, and
       transferees.

   18. Final Settlement. The Parties agree and acknowledge that this Consent
       Decree shall constitute a final settlement between the Parties with
       respect to the Investigation. 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 Communications Laws.

   19. Modifications. This Consent Decree cannot be modified without the
       advance written consent of both Parties.

   20. 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.

   21. Authorized Representative. The individual signing this Consent Decree
       on behalf of Silicondust represents and warrants that he is authorized
       by Silicondust to execute this Consent Decree and to bind Silicondust
       to the obligations set forth herein. The FCC signatory represents that
       he is signing this Consent Decree in his official capacity and that he
       is authorized to execute this Consent Decree.

   22. 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.

   ________________________________

   John D. Poutasse

   Chief

   Spectrum Enforcement Division

   Enforcement Bureau

   _______________________________

   Date

   _______________________________

   Theodore D. Head

   President and Chief Operating Officer

   Silicondust USA, Inc.

   ______________________________

   Date

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

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

   47 U.S.C. S:S: 154(i), 503(b).

   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, 15.19.

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

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

   See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   FCC Enforcement Bureau, to Theodore D. Head, President and Chief Operating
   Officer, Silicondust USA, Inc. (Mar. 18, 2010) (on file in EB-10-SE-019).

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

   47 C.F.R. S: 2.803.

   See id. S: 15.3(z) (defining "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").

   See id. S: 15.3(w) (defining "television (TV) broadcast receiver" as a
   "device designed to receive television pictures that are broadcast
   simultaneously with sound on the television channels authorized under part
   73 of this chapter").

   Silcondust sells two tuner models under the moniker, HDHomeRun, with
   either one or two tuners. The physical differences between these two
   models do not result in differences in the emanation characteristics of
   the devices, and therefore, under Section 2.953(d) of the Rules, 47 C.F.R.
   S: 2.953(d), the two models may be verified under a single verification.
   Accordingly, for the purpose of this Consent Decree, the two HDHomeRun
   models marketed by Silicondust are treated as a single model.

   See id. S: 15.101.

   Id. S: 15.19.

   Id. S: 15.19(a)(1).

   See id.S: 2.909(b) (defining the "responsible party" for equipment subject
   to verification as the equipment manufacturer, the importer, or if the
   device is modified by any party not working under the authority of the
   responsible party, the party performing the modification).

   See supra note 5.

   See Letter from Otto O. Lee, counsel for Silicondust USA, Inc., to Ricardo
   Durham, Senior Deputy Chief, and Nissa Laughner, Attorney Advisor,
   Spectrum Enforcement Division, FCC Enforcement Bureau (May 10, 2010) (on
   file in EB-10-SE-019).

   See id. at 4 and Exhibit C.

   See id.

   Affidavit of Theodore D. Head, President and Chief Executive Officer,
   Silicondust USA, Inc. (Mar. 23, 2012).

   See LOI Response at 4 and Exhibit C.

   See, e.g., Tolling Agreement Extension, File No. EB-10-SE-019, executed by
   and between John D. Poutasse, Chief, Spectrum Enforcement Division, FCC
   Enforcement Bureau, and Theodore Head, President and Chief Executive
   Officer, Silicondust USA, Inc. (June 27, 2012).

   47 C.F.R. S: 1.16.

   An FCC Form 159 and detailed instructions for completing the form may be
   obtained at http://www.fcc.gov/Forms/Form159/159.pdf.

   Equal Access to Justice Act, Pub L. No 96-481, 94 Stat. 2325 (1980)
   (codified at 5 U.S.C. S: 504); see also 47 C.F.R. S:S: 1.1501-1.1530.

   (Continued from previous page)

   (continued....)

   Federal Communications Commission DA 12-1108

   2

   Federal Communications Commission DA 12-1108