**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+---+---------------------------------+
| In the Matter of                 | ) | File Number: EB-06-LA-345       |
|                                  |   |                                 |
| Compatible Electronics Inc.      | ) | NAL/Acct. No.: 200732900010     |
|                                  |   |                                 |
| Silverado, CA                    | ) | FRN: 0009767906                 |
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|                                  | ) |                                 |
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|                                  | ) |                                 |
|                                  |   |                                 |
|                                  | ) |                                 |
|                                  |   |                                 |
|                                  | ) |                                 |
+----------------------------------+---+---------------------------------+

## NOTICE OF APPARENT LIABILITY FOR FORFEITURE {#notice-of-apparent-liability-for-forfeiture .unnumbered}

> Released: May 23, 2007

By the District Director, Los Angeles Office, Western Region,
Enforcement Bureau:

# INTRODUCTION

1.  In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
    that Compatible Electronics Inc. ("Compatible"), in Silverado,
    California, apparently willfully and repeatedly violated Section 301
    of the Communications Act of 1934 ("Act")[^1] for operating a radio
    transmitter without a license. We conclude, pursuant to Section
    503(b) of the Communications Act of 1934, as amended ("Act"),[^2]
    that Compatible is apparently liable for a forfeiture in the amount
    of ten thousand dollars (\$10,000).

# BACKGROUND

2.  On December 22, 2006 the Enforcement Bureau's Los Angeles Office
    received a request for assistance from the Air Force Rescue
    Coordination Center ("AFRCC") regarding interference to the 406 MHz
    Search and Rescue Satellite ("SARSAT") System. Investigation by the
    Los Angeles Office revealed that the interference was caused by the
    intentional activation of an unregistered, emergency locator
    transmitter ("ELT") at Compatible's open field testing laboratory
    near Mission Viejo California. [^3] After the ELT was turned off, a
    Los Angeles agent admonished personnel from Compatible and
    Compatible's customer, the manufacturer of the ELT in question, that
    ELTs tested in the United States must be operated in accordance with
    the Commission's Rules.

3.  On December 26, 2006, a Los Angeles agent contacted, via a three-way
    conference call, the manager of Compatible, and a representative
    from Compatible's customer, and explained that the Commission's
    rules had no provisions for open air operation of an ELT on 406.025
    MHz.[^4]

4.  On March 1, 2007, the Commission sent a Letter of Inquiry ("LOI") to
    Compatible regarding its activation of ELTs in December of 2006 and
    asking Compatible how it complied with the Commission's Rules when
    testing ELTs. In its response to the LOI, Compatible stated that it
    "performs tests related to electromagnetic compatibility of
    pre-production equipment to assist the electronics industry to meet
    the compliance requirements of regulatory agencies in the US and
    worldwide. \[Compatible is\] contracted by local companies to
    perform testing on their products to determine compliance with FCC,
    FAA . . . regulations." Compatible stated that it does not have a
    license to operate an ELT test station nor does it have an
    experimental radio station license for 406 MHz. Compatible also
    stated that the tests were performed at its facility and were being
    conducted for its customer. Compatible further stated that while its
    customer was operating the ELT, Compatible was making received
    signal measurements of the ELT on 121.5 MHz and 243 MHz. Compatible
    acknowledged, however, that the ELT was operating on 121.5, 243 and
    406 MHz and that the December 22, 2006, tests had not been
    coordinated with the FAA Regional Spectrum Management Office.
    Compatible also stated that additional testing on 406 MHz took
    place, with permission from its customer, on December 29, 2006, and
    that testing on 121.5 and 243 MHz was performed on December 26 and
    29, 2006, and January 5, 10, 19 and 22, 2007. Finally, Compatible
    also stated that it was testing on 121.5 MHz and 243 MHz at an open
    area test site as required by Section 2.1511(a) of the Rules.[^5]

# DISCUSSION

5.  Section 503(b) of the Act provides that any person who willfully or
    repeatedly fails to comply substantially with the terms and
    conditions of any license, or willfully or repeatedly fails to
    comply with any of the provisions of the Act or of any rule,
    regulation or order issued by the Commission thereunder, shall be
    liable for a forfeiture penalty. The term \"willful\" as used in
    Section 503(b) has been interpreted to mean simply that the acts or
    omissions are committed knowingly.[^6] The term "repeated" means the
    commission or omission of such act more than once or for more than
    one day.[^7]

6.  Section 301 of the Act states that no person shall use or operate
    any apparatus for the transmission of energy, or communications or
    signals by radio within the United States except under and in
    accordance with the Act and with a license granted under the
    provisions of the Act. Section 3(33) of the Act defines
    "communications by radio" as "the transmission by radio of writing,
    signs, signals, pictures, and sounds of all kinds, including all
    instrumentalities, facilities, apparatus, and services (among other
    thing the receipt, forwarding, and delivery of communications)
    incidental to such transmission."[^8] Section 87.473(b) of the
    Commission's Rules requires that "\[l\]icenses for ELT test stations
    will be granted only to applicants to train personnel in the
    operation and location of ELTs, or for testing related to the
    manufacturer or design of ELTs." [^9] Section 87.475(d) of the Rules
    states the frequencies available for ELT test stations are 121.600,
    121.650, 121.700, 121.750, 121.800, 121.850, and 121.900 MHz and
    also states that ELT test station licensees must "\[n\]ot cause
    harmful interference to voice communications on these frequencies or
    any harmonically related frequency," and must "\[c\]oordinate with
    the appropriate FAA Regional Spectrum Management Office prior to the
    activation of each transmitter." [^10]

7.  A false ELT activation has the potential to severely impact the
    search and rescue network, resulting in responder resources being
    wasted and misdirected. According to the United States Coast Guard
    ("USCG"), air searches for false ELT activations cost the USCG
    thousands of dollars per search hour. Additional costs are incurred
    by rescue coordination centers, support personnel, and ground search
    and rescue responders. False activations also can cause harmful
    interference to the Search and Rescue Satellite system and to
    airplanes and vessels in the vicinity of the signal. Additionally, a
    false activation may conceal or prevent timely response to a
    legitimate distress signal.[^11]

8.  On December 22, 2006, the AFRCC notified the FCC Los Angeles Office
    of interference to its SARSAT operations on 406 MHz. A Los Angeles
    agent confirmed that the interfering signal was caused by the
    activation of an ELT on 406.025 MHz at Compatible's testing
    facility. Compatible has produced no license authorizing its testing
    of an ELT on 406.025 MHz in an open field. While Compatible stated
    in its response to the LOI that it did not operate the ELT in
    question, it provided services and facilities incidental to the
    transmission of communications by radio occurring on 406.025 MHz on
    December 22, 2006. Specifically, Compatible provided the testing
    facility in which the operation took place. Consequently, Compatible
    apparently participated in the unauthorized operation. Additionally,
    while Compatible has no ELT testing station license, it has admitted
    to using its facility to test ELTs on 121.5, 243 and 406 MHz, on
    multiple days between December 22, 2006, and January 22, 2007.

9.  Compatible states that its open site testing was conducted as
    required by Section 2.1511(a) of the Rules. We disagree. First, we
    note that Section 2.1511 is part of the Commission's Rules which
    detail the procedure for testing Class A, B, and S Emergency
    Position Indicating Radiobeacons ("EPIRBs"). Second, Section
    2.1511(a) specifically references Section 2.1507 of the Rules which
    limits such testing on frequency pairs from 121.600/243.200 MHz to
    121.900/243.800 MHz, subject to the conditions that the testing
    shall not cause harmful interference to authorized communications on
    those frequencies and that the testing shall be coordinated with the
    nearest FCC district office.[^12] Compatible not only failed to
    coordinate its tests with the Los Angeles Office, the nearest FCC
    district office, but the tests results submitted along with
    Compatible's response to the LOI reveal that Compatible performed
    its tests on 121.5 MHz and 243 MHz, and not on the frequencies
    mandated by either Section 2.1507 or Section 87.475(d), in a 30
    meter open area test site.

10. Compatible was aware that it did not have an authorization to
    conduct ELT testing on any frequency, therefore, its violation was
    willful. Compatible's unauthorized, unlicensed operation of ELTs
    occurred on more than one day, therefore, its violation was
    repeated. Based on the evidence before us, we find that Compatible
    apparently willfully and repeatedly violated Section 301 of the Act
    of the Rules by testing and operating ELTs without the appropriate
    authorization from the Commission.

11. Pursuant to *The Commission's Forfeiture Policy Statement and
    Amendment of Section 1.80 of the Rules to Incorporate the Forfeiture
    Guidelines,* (\"*Forfeiture Policy Statement*\"), and Section 1.80
    of the Rules, the base forfeiture amount for operating without a
    license is \$10,000.[^13] In assessing the monetary forfeiture
    amount, we must also take into account the statutory factors set
    forth in Section 503(b)(2)(D) of the Act, which include the nature,
    circumstances, extent, and gravity of the violations, and with
    respect to the violator, the degree of culpability, and history of
    prior offenses, ability to pay, and other such matters as justice
    may require.[^14] Applying the *Forfeiture Policy Statement*,
    Section 1.80, and the statutory factors to the instant case, we
    conclude that Compatible apparently liable for a \$10,000
    forfeiture.

# ORDERING CLAUSES

12. Accordingly**, IT IS ORDERED** that, pursuant to Section 503(b) of
    the Communications Act of 1934, as amended, and Sections 0.111,
    0.311, 0.314 and 1.80 of the Commission\'s Rules, Compatible
    Electronics Inc. is hereby **NOTIFIED** of this **APPARENT LIABILITY
    FOR A FORFEITURE** in the amount of ten thousand dollars (\$10,000)
    for violations of Section 301 of the Communications Act.[^15]

13. **IT IS FURTHER ORDERED** that, pursuant to Section 1.80 of the
    Commission\'s Rules within thirty days of the release date of this
    Notice of Apparent Liability for Forfeiture, Compatible Electronics
    Inc. **SHALL PAY** the full amount of the proposed forfeiture or
    **SHALL FILE** a written statement seeking reduction or cancellation
    of the proposed forfeiture.

14. Payment of the forfeiture must be made by check or similar
    instrument, payable to the order of the Federal Communications
    Commission.  The payment must include the NAL/Acct. No. and FRN No.
    referenced above.  Payment by check or money order may be mailed to
    Federal Communications Commission, P.O. Box 358340, Pittsburgh, PA
    15251-8340.  Payment by overnight mail may be sent to Mellon
    Bank /LB 358340, 500 Ross Street, Room 1540670, Pittsburgh, PA
    15251.   Payment by wire transfer may be made to ABA
    Number 043000261, receiving bank Mellon Bank, and account
    number 911-6106.

15. The response, if any, must be mailed to Federal Communications
    Commission, Enforcement Bureau, Western Region, Los Angeles Office,
    18000 Studebaker Rd., Suite 660, Cerritos, CA 90703 and must include
    the NAL/Acct. No. referenced in the caption.

16. The Commission will not consider reducing or canceling a forfeiture
    in response to a claim of inability to pay unless the petitioner
    submits: (1) federal tax returns for the most recent three-year
    period; (2) financial statements prepared according to generally
    accepted accounting practices (\"GAAP\"); or (3) some other reliable
    and objective documentation that accurately reflects the
    petitioner's current financial status. Any claim of inability to pay
    must specifically identify the basis for the claim by reference to
    the financial documentation submitted.

17. Requests for payment of the full amount of this Notice of Apparent
    Liability for Forfeiture under an installment plan should be sent
    to: Associate Managing Director -- Financial Operations, Room 1A625,
    445 12th Street, S.W., Washington, D.C. 20554.[^16]

18. **IT IS FURTHER ORDERED** that a copy of this Notice of Apparent
    Liability for Forfeiture shall be sent by Certified Mail, Return
    Receipt Requested, and regular mail, to Compatible Electronics Inc.

FEDERAL COMMUNICATIONS COMMISSION

Catherine Deaton

District Director

Los Angeles Office

Western Region

Enforcement Bureau

[^1]: 47 U.S.C. § 301.

[^2]: 47 U.S.C. § 503(b).

[^3]: ELTs operating on 406.0 -- 406.1 MHz must be registered with the
    National Oceanographic and Atmospheric Administration. *See* 47
    C.F.R. § 87.199.

[^4]: *See* 47 C.F.R. § 87.197 (ELT testing must avoid outside
    radiation. Bench and ground tests conducted outside of an
    RF-shielded enclosure must be conducted with the ELT terminated into
    a dummy load.) and 47 C.F.R. § 87.475(d) (The frequencies available
    for assignment to ELT test stations are 121.600, 121.650, 121.700,
    121.750, 121.800, 121.850, and 121.900 MHz.).

[^5]: 47 C.F.R. § 2.1511(a).

[^6]: Section 312(f)(1) of the Act, 47 U.S.C. § 312(f)(1), which applies
    to violations for which forfeitures are assessed under Section
    503(b) of the Act, provides that \"\[t\]he term \'willful\', when
    used with reference to the commission or omission of any act, means
    the conscious and deliberate commission or omission of such act,
    irrespective of any intent to violate any provision of this Act or
    any rule or regulation of the Commission authorized by this
    Act....\" *See Southern California Broadcasting Co.*, 6 FCC Rcd 4387
    (1991).

[^7]: Section 312(f)(2) of the Act, 47 U.S.C. § 312(f)(2), which also
    applies to violations for which forfeitures are assessed under
    Section 503(b) of the Act, provides that \"\[t\]he term
    \'repeated\', when used with reference to the commission or omission
    of any act, means the commission or omission of such act more than
    once or, if such commission or omission is continuous, for more than
    one day."

[^8]: 47 U.S.C. § 153(33).

[^9]: 47 C.F.R. § 87.473(b).

[^10]: 47 C.F.R. § 87.475(d).

[^11]: *Grant Lam*, Forfeiture Order, DA 07-1472, 2007 WL 967181 (rel.
    March 30, 2007).

[^12]: 47 C.F.R. § 2.1507. The permitted frequency pairs are
    121.600/243.200 MHz, 121.650/243.300 MHz, 121.700/243.400 MHz,
    121.750/243.500 MHz, 121.800/243.600 MHz, 121.850/243.700 MHz, and
    121.900/243.800 MHz.

[^13]: 12 FCC Rcd 17087 (1997), *recon. denied*, 15 FCC Rcd 303 (1999);
    47 C.F.R. §1.80.

[^14]: 47 U.S.C. § 503(b)(2)(E).

[^15]: 47 U.S.C. §§ 301, 503(b); 47 C.F.R. §§ 0.111, 0.311, 0.314, 1.80.

[^16]: *See* 47 C.F.R. § 1.1914.