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Federal Communications Commission DA 18-628
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
)
Cirrus Systems, Inc. ) File No.: EB-SED-17-00024676
) Acct. No.: 201832100022
) FRN: 0027635770
)
ORDER
Adopted: June 29, 2018 Released: June 29, 2018
By the Deputy Chief, Enforcement Bureau:
1. The Enforcement Bureau (Bureau) of the Federal Communications Commission has
entered into a Consent Decree to resolve its investigation into whether Cirrus Systems, Inc. (Cirrus)
violated the Commission s rules by marketing light emitting diode (LED) signs used in digital billboards
and other commercial and industrial applications, without the required equipment authorization, labeling,
and user manual disclosures in violation of the Commission s rules. These rules ensure that radio-
frequency devices marketed in the United States do not interfere with authorized communications,
thereby maintaining network integrity and security and protecting consumers. To settle this matter, Cirrus
admits that it marketed LED signs without the required equipment authorization, labeling, and user
manual disclosures, will implement a compliance plan, and will pay a $15,000 civil penalty.
2. 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
referenced investigation regarding Cirrus compliance with the equipment authorization, labeling and user
manual disclosure rules in effect at the time of the violations, Section 302(b) of the Communications Act
of 1934, as amended (Act)1, and Sections 2.803, 2.955, 15.19, 15.21, 15.101, and 15.105 of the
Commission s rules.2
3. In the absence of material new evidence relating to this matter, we do not set for hearing
the question of Cirrus basic qualifications to hold or obtain any Commission license or authorization.3
4. Accordingly, IT IS ORDERED that, pursuant to Section 4(i) of the Act4 and the
authority delegated by Sections 0.111 and 0.311 of the Rules,5 the attached Consent Decree IS
ADOPTED and its terms incorporated by reference.
5. IT IS FURTHER ORDERED that the above-captioned matter IS TERMINATED.
1 47 U.S.C. § 302a(b).
2 47 CFR §§ 2.803, 2.955, 15.19, 15.21, 15.101, 15.105 (2017). Some of the rules in effect at the time the violations
occurred were subsequently amended. The new rules became effective on November 2, 2017. See Amendment of
Parts 0, 1, 2, 15, and 18 of the Commission s Rules regarding Authorization of Radiofrequency Equipment, Report
and Order, 32 FCC Rcd 8746 (July 2017).
3 See 47 CFR § 1.93(b).
4 47 U.S.C. § 154(i).
5 47 CFR §§ 0.111, 0.311.
Federal Communications Commission DA 18-628
6. 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 David Rycyna, Chief Executive
Officer, Cirrus Systems, Inc., 47 Springhill Road, Saco, Maine, 04072.
FEDERAL COMMUNICATIONS COMMISSION
Christopher L. Killion
Deputy Chief
Enforcement Bureau
2
Federal Communications Commission DA 18-628
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
)
Cirrus Systems, Inc. ) File No.: EB-SED-17-00024676
) Acct. No.: 201832100022
) FRN: 0027635770
)
CONSENT DECREE
1. The Enforcement Bureau of the Federal Communications Commission and Cirrus
Systems, Inc. (Cirrus), by their authorized representatives, hereby enter into this Consent Decree for the
purpose of terminating the Enforcement Bureau s investigation into whether Cirrus violated Section
302(b) of the Communications Act of 1934, as amended (Act),6 and Sections 2.803, 2.955, 15.19, 15.21,
15.101, and 15.105 of the Commission s rules.7
I. DEFINITIONS
2. For the purposes of this Consent Decree, the following definitions shall apply:
(a) Act means the Communications Act of 1934, as amended.8
(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) Cirrus or Company means Cirrus Systems, Inc. and its affiliates, subsidiaries,
predecessors-in-interest, and successors-in-interest.
(e) Commission and FCC mean the Federal Communications Commission and all
of its bureaus and offices.
(f) Communications Laws means collectively, the Act, the Rules, and the published
and promulgated orders and decisions of the Commission to which Cirrus is subject
by virtue of its business activities, including but not limited to the Equipment
Marketing Rules.
(g) Compliance Plan means the compliance obligations, program, and procedures
described in this Consent Decree at paragraph 13.
(h) Covered Employees means all employees and agents of Cirrus who perform, or
supervise, oversee, or manage the performance of, duties that relate to Cirrus
6 47 U.S.C. § 302a(b).
7 47 CFR §§ 2.803, 2.955, 15.19, 15.21, 15.101, 15.105. Some of the rules in effect at the time the violations
occurred were subsequently amended and became effective on November 2, 2017. See Amendment of Parts 0, 1, 2,
15, and 18 of the Commission s Rules Regarding Authorization of Radiofrequency Equipment, Report and Order, 32
FCC Rcd 8746 (2017) (Equipment Authorization Order). This settlement resolves violations prior to the effective
date of the amended rules and sets forth obligations for compliance with the current rules.
8 47 U.S.C. § 151 et seq.
Federal Communications Commission DA 18-628
responsibilities under the Communications Laws, including the Equipment
Marketing Rules.
(i) Effective Date means the date by which both the Bureau and Cirrus have signed
the Consent Decree.
(j) Equipment Marketing Rules means Section 302(b) of the Act;9 Sections 2.803,
2.938 or 2.955, 2.1077, 15.19, 15.21, 15.101, and 15.105 of the Rules;10 and other
provisions of the Act, the Rules, and Commission orders related to the authorization
of radio frequency devices and the marketing of such devices.
(k) Investigation means the investigation commenced by the Bureau in File No. EB-
SED-17-00024676 regarding whether Cirrus violated the Equipment Marketing
Rules.11
(l) Operating Procedures means the standard internal operating procedures and
compliance policies established by Cirrus to implement the Compliance Plan.
(m) Parties means Cirrus and the Bureau, each of which is a Party.
(n) Rules means the Commission s regulations found in Title 47 of the Code of
Federal Regulations.
II. BACKGROUND
3. Section 302 of the Act authorizes the Commission to promulgate reasonable regulations
to minimize harmful interference by equipment that emits radio frequency energy.12 Specifically,
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. 13 The purpose of Section 302 of the Act is to ensure that radio
transmitters and other electronic devices meet certain standards to control interference before they reach
the market.
4. The Commission carries out its responsibilities under Section 302 of the Act in two ways.
First, the Commission establishes technical requirements for transmitters and other equipment to
minimize their potential for causing interference to authorized radio services. Second, the Commission
administers an equipment authorization program to ensure that equipment reaching the market in the
United States complies with the technical and administrative requirements set forth in the Rules. The
equipment authorization program requires, among other things, that radio frequency devices must be
tested for compliance with the applicable technical requirements prior to marketing.14 In that regard,
Section 2.803(b) of the Rules prohibits the marketing of radio frequency devices unless the device has
9 Id. § 302a(b).
10 47 CFR §§ 2.803, 2.938, 2.1077, 15.19, 15.101 (2018); id. §§ 2.803, 2.955, 15.19, 15.21, 15.101, 15.105 (2017).
11 See, e.g., Revised Letter of Inquiry from Aspasia A. Paroutsas, Chief, Spectrum Enforcement Division, FCC
Enforcement Bureau, to David Rycyna, Chief Executive Officer, Cirrus Systems, Inc. (July 21, 2017) (LOI);
Supplemental Letter of Inquiry from Aspasia A. Paroutsas, Chief, Spectrum Enforcement Division, FCC
Enforcement Bureau, to Andrew Klein, Klein Law Group PLLC, Counsel for Cirrus Systems, Inc. (Sept. 5, 2017)
(both on file in EB-SED-17-00024676).
12 47 U.S.C. § 302a.
13 Id. § 302a(b).
14 The term marketing is defined in the Rules and includes 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 CFR § 2.803(a).
2
Federal Communications Commission DA 18-628
first been properly authorized, identified, and labeled in accordance with the Rules, with limited
exceptions.15
5. Cirrus is a privately held corporation that manufactures, sells, and imports light-emitting
diode (LED) display signs.16 On July 12, 2017, after reviewing a complaint, the Bureau s Spectrum
Enforcement Division issued a Letter of Inquiry (LOI) to Cirrus, directing it to submit a sworn written
response to a series of questions relating to its marketing of LED signs in the United States.17 The
investigation revealed that Cirrus violated the Equipment Marketing Rules by marketing LED signs
without the required equipment authorization, labeling, and user manual disclosures, and by failing to
retain required test records.18 After receiving the LOI, Cirrus permanently discontinued the marketing of
all LED display models in its inventory.19 Cirrus then designed a new model, obtained an equipment
authorization for it, and began marketing it with the proper labels and user manual disclosures.20 The
Company achieved compliance with the relevant Equipment Marketing Rules by February 2018 for the
LED signs at issue.21
6. The Bureau and Cirrus negotiated the following terms and conditions of settlement and
hereby enter into this Consent Decree as provided herein.
III. TERMS OF AGREEMENT
7. Adopting Order. The provisions of this Consent Decree shall be incorporated by the
Bureau in an Adopting Order.
8. Jurisdiction. Cirrus 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.
9. 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 Parties agree that this
Consent Decree shall have the same force and effect as any other order of the Commission.
10. 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, Cirrus agrees to the
terms, conditions, and procedures contained herein. The Bureau further 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 new proceeding, formal or
informal, or take any action on its own motion against Cirrus 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
15 See id. §§ 2.803(b), (c).
16 See Letter of Inquiry Response from Andrew M. Klein and Susan C. Goldhar Orenstein, Klein Law Group PLLC,
Counsel for Cirrus Systems, Inc., to Marlene H. Dortch, Secretary, FCC at 1-2 (Aug. 30, 2017) (LOI Response) (on
file in EB-SED-17-00024676); Cirrus Systems, Inc., Display Hardware, https://cirrusled.com/display-hardware/ (last
visited June 14, 2018).
17 See supra note 6.
18 See generally LOI Response; Supplemental Letter of Inquiry Response from Andrew M. Klein and Susan C.
Goldhar Orenstein, Klein Law Group PLLC, Counsel for Cirrus Systems, Inc., to Marlene H. Dortch, Secretary,
FCC (Sept. 19, 2017) (both on file in EB-SED-17-00024676).
19 See Declaration of David Rycyna, Chief Executive Officer, Cirrus Systems, Inc. (May 16, 2018) (on file in EB-
SED-17-00024676).
20 Id.
21 Id. Cf. 47 CFR §§ 2.803, 2.955, 15.19, 15.21, 15.101, 15.105 (2017).
3
Federal Communications Commission DA 18-628
Decree, to institute on its own motion any proceeding, formal or informal, or to set for hearing the
question of Cirrus basic qualifications to be a Commission licensee or hold Commission licenses or
authorizations.22
11. Admission of Liability. Cirrus admits for the purpose of this Consent Decree and for
Commission civil enforcement purposes, and in express reliance on the provisions of paragraph 10 herein,
that its actions described in paragraph 5 herein violated the Equipment Marketing Rules in effect during
the Investigation.
12. Compliance Officer. Within thirty (30) calendar days after the Effective Date, Cirrus
shall designate a senior corporate manager with the requisite corporate and organizational authority to
serve as a 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 Cirrus 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 or her duties under this Consent Decree, the Compliance Officer shall have specific
knowledge of the Equipment Marketing Rules prior to assuming his or her duties.
13. Compliance Plan. For purposes of settling the matters set forth herein, Cirrus 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, Cirrus will
implement, at a minimum, the following procedures:
(a) Operating Procedures. Within thirty (30) calendar days after the Effective Date,
Cirrus shall establish Operating Procedures that all Covered Employees must follow
to help ensure Cirrus compliance with the Equipment Marketing Rules. Cirrus
Operating Procedures shall include internal procedures and policies specifically
designed to ensure that all radio frequency devices to be marketed by Cirrus are
properly authorized and compliant with the applicable technical and administrative
standards and requirements prior to the initiation of marketing.23 Additionally,
Cirrus will establish a procedure for retaining documentation supporting device
compliance prior to the initiation of marketing.24 Cirrus shall also develop a
Compliance Checklist that describes the steps that a Covered Employee must follow
to ensure compliance with the Equipment Marketing Rules.
(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 Cirrus compliance with the Equipment Marketing Rules.
Cirrus shall periodically review and revise the Compliance Manual as necessary to
ensure that the information set forth therein remains current and accurate. Cirrus
shall distribute any revisions to the Compliance Manual promptly to all Covered
Employees.
(c) Compliance Training Program. Cirrus shall establish and implement a
Compliance Training Program in compliance with the Equipment Marketing Rules
and the Operating Procedures. As part of the Compliance Training Program,
22 See 47 CFR § 1.93(b).
23 See supra note 9 and accompanying text.
24 See 47 CFR §§ 2.938, 2.945 (2018); id. § 2.955 (2017); see also Equipment Authorization Order, 32 FCC Rcd at
8782, Appx. A.
4
Federal Communications Commission DA 18-628
Covered Employees shall be advised of Cirrus obligation to report any
noncompliance with the Equipment Marketing Rules under paragraph 14 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
initial Compliance Training Program shall be trained within thirty (30) calendar
days after the date such person becomes a Covered Employee. Cirrus shall repeat
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.
14. Reporting Noncompliance. Cirrus 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 Cirrus 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 the
Cirrus has taken or will take to prevent the recurrence of any such noncompliance. All reports of
noncompliance shall be submitted to Matthew L. Conaty, Chief, Spectrum Enforcement Division,
Enforcement Bureau, Federal Communications Commission, 445 12th Street, SW, Rm. 3-C366,
Washington, DC 20554, with a copy submitted electronically to Kevin.Pittman@fcc.gov.
15. Compliance Reports. Cirrus 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, and thirty-six (36) months after the Effective Date.
(a) Each Compliance Report shall include a detailed description of Cirrus 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 Cirrus, stating that the Compliance Officer has personal knowledge that Cirrus:
(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 14 of this
Consent Decree.
(b) The Compliance Officer s certification shall be accompanied by a statement
explaining the basis for such certification and shall 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.25
(c) If the Compliance Officer cannot provide the requisite certification, the Compliance
Officer, as an agent of and on behalf of Cirrus, 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 Cirrus 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 Cirrus has taken or will take to prevent the recurrence
of any such noncompliance, including the schedule on which such preventive action
will be taken.
25 47 CFR § 1.16.
5
Federal Communications Commission DA 18-628
(d) All Compliance Reports shall be submitted to Matthew L. Conaty, Chief, Spectrum
Enforcement Division, Enforcement Bureau, Federal Communications Commission,
445 12th Street, SW, Rm. 3-C366, Washington, DC 20554, with a copy submitted
electronically to Kevin.Pittman@fcc.gov.
16. Termination Date. Unless stated otherwise, the requirements set forth in paragraphs 12
through 15 of this Consent Decree shall expire thirty-six (36) months after the Effective Date.
17. Civil Penalty. Cirrus will pay a civil penalty to the United States Treasury in the amount
of fifteen thousand dollars ($15,000) within thirty (30) calendar days of the Effective Date. Cirrus shall
send electronic notification of payment to Kevin Pittman at kevin.pittman@fcc.gov and to SED s mailbox
at EB-SED-Response@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 Account Number and FRN
referenced above. Regardless of the form of payment, a completed FCC Form 159 (Remittance Advice)
must be submitted.26 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 should be followed based on the form of payment selected:
" 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.
Questions regarding payment procedures should be addressed to the Financial Operations Group
Help Desk by phone, 1-877-480-3201, or by e-mail, ARINQUIRIES@fcc.gov.
18. Waivers. As of the Effective Date, Cirrus 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. Cirrus 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 Consent
Decree or the Adopting Order, neither Cirrus nor the Commission shall contest the validity of the Consent
Decree or the Adopting Order, and Cirrus shall waive any statutory right to a trial de novo. Cirrus hereby
agrees to waive any claims it may otherwise have under the Equal Access to Justice Act27 relating to the
matters addressed in this Consent Decree.
19. Severability. The Parties agree that if any of the provisions of the Consent Decree shall
be held unenforceable by any court of competent jurisdiction, such unenforceability shall not render
26 An FCC Form 159 and detailed instructions for completing the form may be obtained at
http://www.fcc.gov/Forms/Form159/159.pdf.
27 See 5 U.S.C. § 504; 47 CFR §§ 1.1501 1.1530.
6
Federal Communications Commission DA 18-628
unenforceable the entire Consent Decree, but rather the entire Consent Decree shall be construed as if not
containing the particular unenforceable provision or provisions, and the rights and obligations of the
Parties shall be construed and enforced accordingly.
20. 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.
21. 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 Cirrus does not expressly
consent) that provision will be superseded by such Rule or Order.
22. Successors and Assigns. Cirrus agrees that the provisions of this Consent Decree shall
be binding on its successors, assigns, and transferees.
23. Final Settlement. The Parties agree and acknowledge that this Consent Decree shall
constitute a final settlement between the Parties with respect to the Investigation.
24. Modifications. This Consent Decree cannot be modified without the advance written
consent of both Parties.
25. 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.
26. Authorized Representative. Each Party represents and warrants to the other that it has
full power and authority to enter into this Consent Decree. Each person signing this Consent Decree on
behalf of a Party hereby represents that he or she is fully authorized by the Party to execute this Consent
Decree and to bind the Party to its terms and conditions.
27. Counterparts. This Consent Decree may be signed in counterpart (including
electronically or by facsimile). Each counterpart, when executed and delivered, shall be an original, and
all of the counterparts together shall constitute one and the same fully executed instrument.
________________________________
Christopher L. Killion
Deputy Chief
Enforcement Bureau
________________________________
Date
________________________________
David Rycyna
Chief Executive Officer
Cirrus Systems, Inc.
________________________________
Date
7