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Federal Communications Commission DA 18-758
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of )
)
Lighthouse Technologies Limited ) File No.: EB-SED-17-00024695
) Acct. No.: 201832100025
) FRN: 0027542901
)
ORDER
Adopted: August 7, 2018 Released: August 8, 2018
By the 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 Lighthouse Technologies Limited
(Lighthouse) 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
authorizations. 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, Lighthouse admits that it marketed LED signs without the
required equipment authorizations, will implement a compliance plan, and will pay a $115,000 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 Lighthouse s compliance with the equipment authorization 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, and 15.101 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 Lighthouse s 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 Act,4 and the
authority delegated by Sections 0.111 and 0.311 of the Commission s 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, 15.101 (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 (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 18-758
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 Makato Ando, General Manager,
Lighthouse Technologies Limited, Unit 608, 6/F, 2 Science Park East Avenue, Hong Kong Science Park,
Shatin, N.T., Hong Kong, and Cindy Yang, Esq., Counsel to Lighthouse Technologies Limited, Duane
Morris LLP, 1540 Broadway, New York, NY 10036-4086.
FEDERAL COMMUNICATIONS COMMISSION
Rosemary C. Harold
Chief
Enforcement Bureau
2
Federal Communications Commission DA 18-758
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
)
Lighthouse Technologies Limited ) File No.: EB-SED-17-00024695
) Acct. No.: 201832100025
) FRN: 0027542901
)
CONSENT DECREE
1. The Enforcement Bureau of the Federal Communications Commission and Lighthouse
Technologies Limited, by their authorized representatives, hereby enter into this Consent Decree for the
purpose of terminating the Enforcement Bureau s investigation into whether Lighthouse violated Section
302(b) of the Communications Act of 1934, as amended,1 and Sections 2.803, 2.955, and 15.101 of the
Commission s rules.2
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.3
(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 Lighthouse 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 13.
(g) Covered Employees means all employees and agents of Lighthouse who perform,
or supervise, oversee, or manage the performance of, duties that relate to
Lighthouse s responsibilities under the Communications Laws, including the
Equipment Marketing Rules.
1 47 U.S.C. 302a(b).
2 47 CFR 2.803, 2.955, 15.101. 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 any violations that occurred subsequent to that date, but prior to the effective date of this
Consent Decree, and sets forth obligations for compliance with the current rules.
3 47 U.S.C. 151 et seq.
Federal Communications Commission DA 18-758
(h) Effective Date means the date by which both the Bureau and Lighthouse have
signed the Consent Decree.
(i) Equipment Marketing Rules means Section 302(b) of the Act;4 Sections 2.803,
2.938 or 2.955, 2.1077, and 15.101 of the Rules;5 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.
(j) Investigation means the investigation commenced by the Bureau in File No.
EB-SED-17-00024695 regarding whether Lighthouse violated the Equipment
Marketing Rules.6
(k) Lighthouse or Company means Lighthouse Technologies Limited and its
affiliates, subsidiaries, predecessors-in-interest, and successors-in-interest.
(l) Operating Procedures means the standard internal operating procedures and
compliance policies established by Lighthouse to implement the Compliance Plan.
(m) Parties means Lighthouse 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.7 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. 8 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.9 In that regard,
Section 2.803(b) of the Rules prohibits the marketing of radio frequency devices unless the device has
4 Id. 302a(b).
5 47 CFR 2.803, 2.938, 2.1077, 15.101 (2018); id. 2.803, 2.955, 15.101 (2017).
6 See, e.g., Revised Letter of Inquiry from Aspasia A. Paroutsas, Chief, Spectrum Enforcement Division, FCC
Enforcement Bureau, to Edward Whitaker, General Manager, Lighthouse Technologies Limited (Jul. 21, 2017);
Supplemental Letter of Inquiry from Aspasia A. Paroutsas, Chief, Spectrum Enforcement Division, FCC
Enforcement Bureau, to Cindy Yang, Counsel for Lighthouse Technologies Limited (Nov. 8, 2017) (both on file in
EB-SED-17-00024695).
7 47 U.S.C. 302a.
8 Id. 302a(b).
9 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 18-758
first been properly authorized, identified, and labeled in accordance with the Rules, with limited
exceptions.10
5. Lighthouse develops, manufactures, and markets light-emitting diode (LED) video
display solutions for indoor and outdoor applications.11 On July 21, 2017, after reviewing a complaint,
the Bureau s Spectrum Enforcement Division issued a Letter of Inquiry (LOI) to Lighthouse, directing it
to submit a sworn written response to a series of questions relating to its marketing of LED signs in the
United States.12 The investigation revealed that Lighthouse violated the Equipment Marketing Rules by
marketing certain LED signs without the required equipment authorizations. After receiving the LOI,
Lighthouse began the process of bringing those LED signs into compliance with the Equipment
Marketing Rules by obtaining the required equipment authorizations.13 The Company achieved
compliance with the relevant Equipment Marketing Rules on May 15, 2018, for the LED signs at issue.14
6. The Bureau and Lighthouse 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. Lighthouse 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, Lighthouse 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 Lighthouse 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 to set for hearing
the question of Lighthouse s basic qualifications to be a Commission licensee or hold Commission
licenses or authorizations.15
10 See id. 2.803(b), (c).
11 Lighthouse, About Us, http://lighthouse-tech.com/en-US/AboutUs/Index (last visited June 27, 2018).
12 See supra note 6.
13 See, e.g., Letter from Cindy Yang, Counsel for Lighthouse Technologies Limited, to Jonathan Garvin, Attorney-
Advisor, Spectrum Enforcement Division, FCC Enforcement Bureau (Mar. 16, 2018); E-mail from Cindy Yang,
Counsel for Lighthouse Technologies Limited, to Maureen McCarthy, Attorney-Advisor, Spectrum Enforcement
Division, FCC Enforcement Bureau (May 1, 2018, 15:44 EDT) (on file in EB-SED-17-00024695).
14 See E-mail from Dana Pellegrino, Counsel to Lighthouse Technologies Limited, to Maureen McCarthy, Attorney-
Advisor, Spectrum Enforcement Division, FCC Enforcement Bureau (May 18, 2018, 11:14 EDT) (on file in EB-
SED-17-00024695).
15 See 47 CFR 1.93(b).
3
Federal Communications Commission DA 18-758
11. Admission of Liability. Lighthouse 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,
Lighthouse 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 Lighthouse 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, Lighthouse
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,
Lighthouse will implement, at a minimum, the following procedures:
(a) Operating Procedures. Within thirty (30) calendar days after the Effective Date,
Lighthouse shall establish Operating Procedures that all Covered Employees must
follow to help ensure Lighthouse s compliance with the Equipment Marketing
Rules. Lighthouse s Operating Procedures shall include internal procedures and
policies specifically designed to ensure that all radio frequency devices to be
marketed by Lighthouse are properly authorized and compliant with the applicable
technical and administrative standards and requirements prior to the initiation of
marketing.16 Additionally, Lighthouse will establish a procedure for retaining
documentation supporting device compliance prior to the initiation of marketing.17
Lighthouse 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 Lighthouse s compliance with the Equipment Marketing
Rules. Lighthouse shall periodically review and revise the Compliance Manual as
necessary to ensure that the information set forth therein remains current and
accurate. Lighthouse shall distribute any revisions to the Compliance Manual
promptly to all Covered Employees.
(c) Compliance Training Program. Lighthouse 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,
Covered Employees shall be advised of Lighthouse s 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
16 See supra note 9 and accompanying text.
17 See 47 CFR 2.938, 2.945 (2018); id. 2.955 (2017); see also Equipment Authorization Order, 32 FCC Rcd at
8786-88, Appx. A.
4
Federal Communications Commission DA 18-758
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. Lighthouse 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. Lighthouse 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 Lighthouse 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 Lighthouse 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 Maureen.McCarthy@fcc.gov.
15. Compliance Reports. Lighthouse 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 Lighthouse 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 Lighthouse, stating that the Compliance Officer has personal knowledge that
Lighthouse: (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.18
(c) If the Compliance Officer cannot provide the requisite certification, the Compliance
Officer, as an agent of and on behalf of Lighthouse, 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 Lighthouse 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 Lighthouse 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 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 Maureen.McCarthy@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.
18 47 CFR 1.16.
5
Federal Communications Commission DA 18-758
17. Civil Penalty. Lighthouse will pay a civil penalty to the United States Treasury in the
amount of one hundred fifteen thousand U.S. dollars ($115,000). Such payment is due within thirty (30)
calendar days of the Effective Date. Lighthouse shall send electronic notification of payment to Maureen
McCarthy at Maureen.McCarthy@fcc.gov and to SED 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.19 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, Lighthouse 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. Lighthouse 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 Lighthouse nor the Commission shall contest the validity of the
Consent Decree or the Adopting Order, and Lighthouse shall waive any statutory right to a trial de novo.
Lighthouse hereby agrees to waive any claims it may otherwise have under the Equal Access to Justice
Act20 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
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.
19 An FCC Form 159 and detailed instructions for completing the form may be obtained at
http://www.fcc.gov/Forms/Form159/159.pdf.
20 See 5 U.S.C. 504; 47 CFR 1.1501 1.1530.
6
Federal Communications Commission DA 18-758
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 Lighthouse does not expressly
consent) that provision will be superseded by such Rule or Order.
22. Successors and Assigns. Lighthouse 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.
__________________________
Rosemary C. Harold
Chief
Enforcement Bureau
________________________________
Date
________________________________
Makoto Ando
General Manager
Lighthouse Technologies Limited
________________________________
Date
7