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Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of Rane Corporation ) ) ) ) ) ) File No.: EB-SED-12-00005192
Acct. No.: 201432100001 FRN: 0022833305
ORDER
Adopted: December 23, 2013 Released: December 23, 2013
By the Deputy 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 Rane Corporation (Rane). The Consent
Decree resolves and terminates the Bureau's investigation into Rane's
compliance with Section 302(b) of the Communications Act of 1934, as
amended (Act),^ and Sections 2.803, 15.19, and 15.105 of the
Commission's rules (Rules)^ pertaining to the marketing of digital
radio frequency devices, such as amplifiers, preamplifiers, and
mixers.
2. The Bureau and Rane have negotiated the Consent Decree that resolves
this matter. A copy of this 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 Rane 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), 4(j), 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 Linda Arink, Vice President, Finance and Administration,
Rane Corporation, 10802 47^th Avenue, West, Mukilteo, WA 98275, and to
Jacob Farber, Esq., Perkins Coie LLP, Counsel for Rane Corporation,
700 Thirteenth Street, N.W., Suite 600, Washington, DC 20005-3960.
FEDERAL COMMUNICATIONS COMMISSION
Robert H. Ratcliffe
Deputy Chief
Enforcement Bureau
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of Rane Corporation ) ) ) ) ) ) File No.: EB-SED-12-00005192
Acct. No.: 201432100001 FRN: 0022833305
CONSENT DECREE
The Enforcement Bureau of the Federal Communications Commission and Rane
Corporation, 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, 15.19, and
15.105 of the Commission's rules^ pertaining to the marketing of digital
radio frequency devices, such as amplifiers, preamplifiers, and mixers.
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 collectively, the Act, the Rules, and the
published and promulgated orders and decisions of the Commission to
which Rane is subject by virtue of its business activities, including
but not limited to, the Equipment Marketing Rules.
f. "Compliance Plan" means the compliance obligations, program, and
procedures described in this Consent Decree at paragraph 10.
g. "Covered Employees" means all employees and agents of Rane who
perform, or supervise, oversee, or manage the performance of, duties
that relate to Rane's responsibilities under the Equipment Marketing
Rules.
h. "Digital Device" means an unintentional radiator (device or system) as
defined in Section 15.3(k) of the Rules.^
i. "Effective Date" means the date on which the Bureau releases the
Adopting Order.
j. "Equipment Marketing Rules" means Section 302(b) of the Act,^ Sections
2.803, 15.19, and 15.105 of the Rules^ and other Communications Laws
governing the marketing of radio frequency devices within the United
States and its territories.
k. "Investigation" means the investigation commenced by the Bureau's July
10, 2012, letter of inquiry^ regarding whether the marketing of
certain Digital Devices by Rane complies with the Equipment Marketing
Rules.
l. "Rane" means Rane Corporation and its predecessors-in-interest and
successors-in-interest.
m. "Operating Procedures" means the standard, internal operating
procedures and compliance policies established by Rane to implement
the Compliance Plan.
n. "Parties" means Rane and the Bureau, each of which is a "Party."
o. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
II. BACKGROUND
8. Pursuant to Section 302(b) of the Act^ and Sections 2.803, 15.19, and
15.105 of the Rules,^ certain Digital Devices 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. Section
2.803(a) of the Rules defines "marketing" as 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."^
9. Rane manufactures and markets Digital Devices, including professional
audio and live sound products, such as amplifiers, compressors,
equalizers, and mixers. These Digital Devices are unintentional
radiators subject to authorization prior to marketing, via either the
Commission's equipment verification or declaration of conformity
procedures.^
10. On July 10, 2012, the Bureau's Spectrum Enforcement Division
(Division) issued a letter of inquiry (LOI) to Rane, directing Rane to
submit a sworn written response to a series of questions relating to
its manufacture and marketing of certain Digital Devices.^ Rane
responded to the LOI on August 20, 2012.^ In its LOI Response, Rane
submitted information and documentation relating to the Digital
Devices at issue.^ Rane also provided information concerning whether
its Digital Devices were properly labeled in accordance with Section
15.19 of the Rules,^ and whether the consumer disclosure language
required by Section 15.105 of the Rules^ was included in the user
manual for each Digital Device. In the course of responding to the
LOI, Rane discovered that some of the Digital Devices had not been
labeled and that certain Digital Device user manuals were missing the
consumer disclosure statements.^ The Bureau and Rane entered into a
tolling agreement to toll the statute of limitations.^
III. TERMS OF AGREEMENT
11. 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.
12. Jurisdiction. Rane 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.
13. 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.
14. 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, Rane 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 Rane
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 Rane with respect to Rane's basic
qualifications, including its character qualifications, to be a
Commission licensee or to hold Commission licenses or authorizations.
15. Compliance Officer. Within ten (10) calendar days after the Effective
Date, Rane 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 Rane complies with the terms and conditions of the
Compliance Plan and this Consent Decree. In addition to 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.
16. Compliance Plan. For purposes of settling the matters set forth
herein, Rane agrees that it shall within thirty (30) 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, Rane shall implement the following
procedures:
a. Operating Procedures on Equipment Marketing. Within thirty (30)
calendar days after the Effective Date, Rane shall establish
Operating Procedures that all Covered Employees must follow to help
ensure Rane's compliance with the Equipment Marketing Rules. Rane's
Operating Procedures shall include internal procedures and policies
specifically designed to ensure that prior to the initiation of
marketing (as such term is defined in Section 2.803 of the Rules^),
all Digital Devices and other radio frequency devices to be marketed
by Rane comply with applicable technical standards, have been
properly authorized (via the certification, verification, or
declaration of conformity procedures, as applicable), and comply with
the applicable administrative requirements relating to equipment
labeling and consumer disclosure.^
b. Compliance Manual. Within thirty (30) 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, including the
obligations to secure an equipment authorization from the FCC prior
to marketing a Digital Device and to comply with the applicable
administrative requirements relating to equipment labeling and
consumer disclosure, and set forth the Operating Procedures that
Covered Employees shall follow to help ensure Rane's compliance with
the Equipment Marketing Rules. Rane shall periodically review and
revise the Compliance Manual as necessary to ensure that the
information set forth therein remains current and complete. Rane
shall distribute any revisions to the Compliance Manual promptly to
all Covered Employees.
c. Compliance Training Program. Rane 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
Rane's obligation to report any noncompliance with the Equipment
Marketing Rules under paragraph 11 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 thirty (30) 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. Rane 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.
d. Remedial Efforts for Discontinued Models. Rane shall continue to
ensure that all unlabeled Digital Devices returned to Rane or its
service centers for service or repair shall be affixed with a label
that complies with Section 15.19 of the Rules^ prior to being
returned to the customer. In addition, Rane shall continue to
maintain on its website an online user manual for all Digital Devices
it markets that includes the consumer disclosure language required by
Section 15.105 of the Rules.^
17. Reporting Noncompliance. Rane 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 Rane 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
Rane has taken or will take to prevent the recurrence of any such
noncompliance. All reports of noncompliance shall be submitted on
paper to the Chief, Spectrum Enforcement Division, Enforcement Bureau,
Federal Communications Commission, Room 3-C366, 445 12th Street, S.W.,
Washington, DC 20554, with a copy submitted electronically to Kathy
Harvey at Kathy.Harvey@fcc.gov and to JoAnn Lucanik at
JoAnn.Lucanik@fcc.gov.
18. Compliance Reports. Rane shall file Compliance Reports with the
Commission ninety (90) calendar days after the Effective Date, twelve
(12) months after the Effective Date, twenty-four (24) months after
the Effective Date, thirty-six (36) months after the Effective Date,
and forty-eight (48) months after the Effective Date.
a. Each Compliance Report shall include a detailed description of Rane'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 Rane, stating
that the Compliance Officer has personal knowledge that Rane (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 11 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 Rane, 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 Rane 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 Rane 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 on paper to the Chief,
Spectrum Enforcement Division, Enforcement Bureau, Federal
Communications Commission, Room 3-C366, 445 12th Street, S.W.,
Washington, DC 20554, with a copy submitted electronically to Kathy
Harvey at Kathy.Harvey@fcc.gov and to JoAnn Lucanik at
JoAnn.Lucanik@fcc.gov.
19. Termination Date. Unless stated otherwise, the requirements set forth
in paragraphs 9 through 12 of this Consent Decree shall expire
forty-eight (48) months after the Effective Date.
20. Voluntary Contribution. Rane agrees that it will make a voluntary
contribution to the United States Treasury in the amount of sixty one
thousand five hundred dollars ($61,500) within ten (10) calendar days
after the Effective Date. Rane shall also send electronic
notification of payment to Kathy Harvey at Kathy.Harvey@fcc.gov, JoAnn
Lucanik at JoAnn.Lucanik@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 that Rane should follow
based on the form of payment it selects:
* 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 Rane has questions regarding payment procedures, it should contact the
Financial Operations Group Help Desk by phone, 1-877-480-3201, or by
e-mail, ARINQUIRIES@fcc.gov.
21. Waivers. Rane 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. Rane 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 Rane nor the Commission shall contest the
validity of the Consent Decree or the Adopting Order, and Rane shall
waive any statutory right to a trial de novo. Rane 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.
22. 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.
23. 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 Rane does not expressly consent)
that provision will be superseded by such Rule or Commission order.
24. Successors and Assigns. Rane agrees that the provisions of this
Consent Decree shall be binding on its successors, assigns, and
transferees.
25. 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.
26. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
27. 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.
28. Authorized Representative. The individual signing this Consent Decree
on behalf of Rane represents and warrants that she is authorized by
Rane to execute this Consent Decree and to bind Rane 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.
29. 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.
_____________________________
Robert H. Ratcliffe
Deputy Chief
Enforcement Bureau
_____________________________
Date
_____________________________
Linda Arink
Vice President, Finance and Administration
Rane Corporation
_____________________________
Date
^ This investigation was initiated under File No. EB-10-SE-043 and was
subsequently assigned File No. EB-SED-12-00005192. Any future
correspondence with the FCC concerning this case will reference the new
case number, File No. EB-SED-12-00005192.
^ 47 U.S.C. S 302a(b).
^ 47 C.F.R. SS 2.803, 15.19, 15.105.
^ 47 U.S.C. SS 154(i), 154(j), 503(b).
^ 47 C.F.R. SS 0.111, 0.311.
^ This investigation was initiated under File No. EB-10-SE-043 and was
subsequently assigned File No. EB-SED-12-00005192. Any future
correspondence with the FCC concerning this case will reference the new
case number, File No. EB-SED-12-00005192.
^ 47 U.S.C. S 302a(b).
^ 47 C.F.R. SS 2.803, 15.19, 15.105.
^ Id. S 15.3(k).
^ 47 U.S.C. S 302a(b).
^ 47 C.F.R. SS 2.803, 15.19, 15.105.
^ See Letter from John D. Poutasse, Chief, Spectrum Enforcement Division,
FCC Enforcement Bureau, to George Sheppard, Chief Executive Officer, Rane
Corporation (July 10, 2012) (on file in EB-SED-12-00005192).
^ 47 U.S.C. S 302a(b).
^ 47 C.F.R. SS 2.803, 15.19, 15.105.
^ Id. S 2.803(a).
^ See id. S 15.101.
^ See supra note 7.
^ See Letter from Linda Arink, Vice President, Finance and Administration,
Rane Corporation, to Marlene H. Dortch, Secretary, Federal Communications
Commission (Aug. 20, 2012) (on file in on file in EB-SED-12-00005192) (LOI
Response).
^ See LOI Response at 4-8.
^ See 47 C.F.R. S 15.19.
^ See id. S 15.105.
^ See LOI Response at 3 & Attachment 1.
^ See Tolling Agreement, executed by and between John D. Poutasse, Chief,
Spectrum Enforcement Division, FCC Enforcement Bureau, and Jacob S.
Farber, Esq., Perkins Coie LLP, Counsel for Rane Corporation (Dec. 11,
2012) (on file in EB-SED-12-00005192).
^ See supra note 10 and accompanying text.
^ See 47 C.F.R. SS 2.1203, 2.1204, 2.1205.
^ See id. S 15.19.
^ See id. S 15.105.
^ See id. 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. SS 1.1501-1.1530.
Federal Communications Commission DA 13-2047
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Federal Communications Commission DA 13-2047