**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matter of )

)

Johannus Orgelbouw b.v. ) File No. EB-03-TS-089

The Netherlands ) NAL/Acct. No. 200432100006

) FRN \# 0009-7508-60

)

## NOTICE OF APPARENT LIABILITY FOR FORFEITURE AND ORDER

**Adopted: November 4, 2003 Released: November 6, 2003**

By the Chief, Enforcement Bureau:

**I.** **INTRODUCTION**

1.  In this *Notice of Apparent Liability for Forfeiture and Order*
    ("*NAL*"), we find Johannus Orgelbouw b.v. ("Johannus") apparently
    liable for a forfeiture in the amount of seven thousand dollars
    (\$7,000) for importing and marketing radio frequency devices which
    do not comply with the Commission's technical standards in repeated
    violation of Section 302(b) of the Communications Act of 1934, as
    amended ("Act"),[^1] and Section 2.803(a) of the Commission's Rules
    ("Rules").[^2] The noted violations involve Johannus's importing and
    marketing digital electronic organs that do not comply with the
    technical requirements set forth in Part 15 of the Rules. In
    addition, we order Johannus, pursuant to Section 2.956(a)(1) of the
    Rules,[^3] to submit to the Enforcement Bureau a copy of the
    verification records for each model of organ which it imports into
    the United States in the next two years.

####  II. BACKGROUND

2.  On March 27, 2003, the Enforcement Bureau received a complaint
    alleging that Johannus was importing digital electronic organs that
    were not in compliance with the Commission's rules.[^4] The
    complainant asserted that other digital electronic organ companies
    were suffering competitive harm because Johannus, through its
    failure to comply with the Commission's rules, was able to produce
    digital electronic organs less expensively.

3.  On June 18, 2003, the Enforcement Bureau issued a letter of inquiry
    to Johannus.[^5] Johannus submitted a response to the letter of
    inquiry on June 26, 2003,[^6] and submitted follow-up responses on
    July 10,[^7] July 30,[^8] and September 2, 2003.[^9] In its
    responses, Johannus stated that it imports about three to 13 organs
    a month into the U.S. and Canada.[^10] Johannus stated that it
    investigated as a result of the FCC inquiry and found that some of
    its organs were radiating signals in excess of the radiated emission
    limits in the Commission's rules due to a design change.[^11]
    According to Johannus, this change was installed in organs
    manufactured between July and October, 2002,[^12] and some of those
    organs have been recently imported and marketed in the United
    States.[^13] Johannus further indicated that this design change was
    a temporary one forced by a shortage of certain parts and that it no
    longer manufactures organs with this design change.[^14] Along with
    its September 2, 2003, letter, Johannus provided a copy of a partial
    report from a testing laboratory which indicates that, based on
    measurements made on August 19, 2003, the Johannus "Rembrandt 3900"
    digital organ is in conformance with the radiated and conducted
    emission limits for Class A digital devices set forth in the FCC
    rules.[^15] Johannus stated that this organ is one of its largest
    models and asserted that its other organs, which use fewer
    interference causing components, must be in compliance as well.[^16]

    **III. DISCUSSION**

4.  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."
    Section 2.803(a)(2) of the Rules provides that:

> Except as provided elsewhere in this section, no person shall sell or
> lease, or offer for sale or lease (including advertising for sale or
> lease), or import, ship, or distribute for the purpose of selling or
> leasing or offering for sale or lease, any radio frequency device
> unless ... \[i\]n the case of a device that is not required to have a
> grant of equipment authorization issued by the Commission, but which
> must comply with the specified technical standards prior to use, such
> device also complies with all applicable administrative (including
> verification of the equipment or authorization under a Declaration of
> Conformity, where required), technical, labeling and identification
> requirements specified in this chapter.

It is undisputed that Johannus imports, and markets in the U.S., the
Johannus organs at issue here. It is also undisputed that these devices
are digital devices and therefore must comply with the technical
requirements set forth in Part 15 of the Rules, including the radiated
emission limits. Johannus admitted that it imported and marketed in the
U.S. at least one model of organ (involving more than one organ) that
did not comply with the FCC's radiated emission limits as recently as
July 2003.[^17] Accordingly, based on the evidence before us, we
conclude that Johannus apparently repeatedly[^18] violated Section
302(b) of the Act and Section 2.803(a)(2) of the Rules by importing and
marketing digital electronic organs which do not comply with the
radiated emission limits set forth in Section 15.109 of the Rules.[^19]

5.  Section 503(b) of the Act authorizes the Commission to assess a
    forfeiture for each willful or repeated violation of the Act or of
    any rule, regulation, or order issued by the Commission under the
    Act.[^20] In exercising such authority, we are to take into account
    "the nature, circumstances, extent, and gravity of the violation
    and, with respect to the violator, the degree of culpability, any
    history of prior offenses, ability to pay, and such other matters as
    justice may require."[^21]

6.  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*")[^22] and Section 1.80
    of the Rules,[^23] the base forfeiture amount for importation or
    marketing of unauthorized or non-compliant equipment is \$7,000.
    Accordingly, we are proposing a forfeiture in the amount of \$7,000.
    We caution Johannus that any subsequent importing and marketing of
    non-compliant digital electronic organs will result in further
    sanctions, including substantially higher forfeiture penalties.

7.  Additionally, while Johannus suggested in its LOI responses that its
    digital electronic organs are Class A digital devices, we disagree.
    Rather, we believe that the devices are appropriately classified as
    Class B digital devices and therefore must comply with the more
    stringent emission limits applicable to Class B digital devices.
    Section 15.3(h) of the Rules defines a Class A digital device as
    "\[a\] digital device that is marketed for use in a commercial,
    industrial, or business environment, exclusive of a device which is
    marketed for use by the general public or is intended to be used in
    the home."[^24] Section 15.3(i) defines a Class B digital device as
    "\[a\] digital device that is marketed for use in a residential
    environment notwithstanding use in commercial, business and
    industrial environments. Examples of such devices include, but are
    not limited to, personal computers, calculators, and similar
    electronic devices that are marketed for use by the general
    public."[^25] Among other places, Johannus markets its organs on a
    web site, www.johannus.com. This web site contains information for
    eight series of organs. These series are named the Opus, Sweelinck,
    Rembrandt, Monarke, American Classic-V, Majestic, Sovereign, and
    Chamber organ. The Johannus web site states that the Opus series
    organs "are designed for living room and chapel"; the Monarch series
    organs "find a place in both living rooms and churches"; the
    Majestic and Sovereign series organs are "designed for both home
    practice purposes and church"; and the Chamber organ "has been
    designed for both small and medium sized churches (and home use)."
    Thus, Johannus is clearly marketing these devices for use in a
    residential environment. Accordingly, these devices are Class B
    digital devices and must comply with the more stringent Class B
    technical requirements.

8.  Furthermore, we note that compliance with the FCC rules is not
    simply a matter of importing equipment that meets the applicable
    technical standards. The rules also contain, among other things,
    requirements concerning labeling of radiofrequency devices[^26] and
    requirements that certain information concerning radiofrequency
    devices be provided to the users in the user manual or instruction
    manual.[^27] The complainant alleged that Johannus has not been in
    compliance with the labeling and user manual requirements. Our
    review of the user manual posted on Johannus' website confirms that
    Johannus is not in compliance with the user manual requirements. We
    caution Johannus that, before importing or marketing any of its
    digital electronic organs in the U.S., it must ensure that it
    complies with these requirements as well. Failure to do so may
    result in separate enforcement action.

9.  Finally, pursuant to Section 2.956(a)(1) of the Rules, we order
    Johannus to submit to the Enforcement Bureau a copy of the
    verification records required to be maintained under Section 2.955
    of the Rules[^28] for each separate model of digital electronic
    organ, including both existing models and any new models, which it
    imports into the United States within the next two years following
    the release of this *NAL*. Such records must be submitted no later
    than fifteen (15) days from the date of importation of each model of
    digital electronic organ into the U.S. Each unit of equipment
    imported must be identical to the unit tested, within the variation
    which can be expected due to quantity production and testing on a
    statistical basis. Any modification or change that adversely affects
    the emanation characteristics of the modified equipment will require
    a new verification and the submission of that new verification to
    the Enforcement Bureau. Failure to submit these required
    verification records may result in further enforcement action.

####  IV. ORDERING CLAUSES

10. Accordingly, **IT IS ORDERED** that, pursuant to pursuant to Section
    503(b) of the Act and Sections 0.111, 0.311 and 1.80 of the
    Rules,[^29] Johannus Orgelbouw b.v. **IS** hereby **NOTIFIED** of
    its **APPARENT LIABILITY FOR A FORFEITURE** in the amount of seven
    thousand dollars (\$7,000) for repeatedly violating Section 302(b)
    of the Act and Section 2.803(a) of the Rules.

11. **IT IS FURTHER ORDERED THAT**, pursuant to Section 1.80 of the
    Rules, within thirty days of the release date of this *Notice of
    Apparent Liability for Forfeiture and Order*, Johannus Orgelbouw
    b.v. **SHALL PAY** the full amount of the proposed forfeiture or
    **SHALL FILE** a written statement seeking reduction or cancellation
    of the proposed forfeiture.

12. Payment of the forfeiture may be made by mailing a check or similar
    instrument, payable to the order of the Federal Communications
    Commission, to the Forfeiture Collection Section, Finance Branch,
    Federal Communications Commission, P.O. Box 73482, Chicago, Illinois
    60673-7482. The payment must include the FCC Registration Number
    (FRN) and the NAL/Acct. No. referenced in the caption.

13. The response, if any, must be mailed to the Office of the Secretary,
    Federal Communications Commission, 445 12th Street, S.W.,
    Washington, D.C. 20554, ATTN: Enforcement Bureau -- Spectrum
    Enforcement Division, and must include the NAL/Acct. No. referenced
    in the caption.

14. 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; 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.

15. Requests for payment of the full amount of this *NAL* under an
    installment plan should be sent to: Chief, Revenue and Receivable
    Operations Group, 445 12th Street, S.W., Washington, D.C.
    20554.[^30]

16. Under the Small Business Paperwork Relief Act of 2002, Pub L. No.
    107-198, 116 Stat. 729 (June 28, 2002), the FCC is engaged in a
    two-year tracking process regarding the size of entities involved in
    forfeitures. If you qualify as a small entity and if you wish to be
    treated as a small entity for tracking purposes, please so certify
    to us within thirty (30) days of this *NAL*, either in your response
    to the *NAL* or in a separate filing to be sent to the Enforcement
    Bureau -- Spectrum Enforcement Division. Your certification should
    indicate whether you, including your parent entity and its
    subsidiaries, meet one of the definitions set forth in the list
    provided by the FCC's Office of Communications Business
    Opportunities ("OCBO") set forth in Attachment A of this *NAL*. This
    information will be used for tracking purposes only. Your response
    or failure to respond to this question will have no effect on your
    rights and responsibilities pursuant to Section 503(b) of the Act.
    If you have questions regarding any of the information contained in
    Attachment A, please contact OCBO at (202) 418-0990.

17. **IT IS FURTHER ORDERED** that, for two years from the date of
    release of this *Notice of Apparent Liability for Forfeiture and
    Order*, Johannus Orgelbouw b.v. must submit the records described in
    paragraph 9 no later than fifteen (15) days from the date of
    importation of each model of digital electronic organ into the U.S.
    These records must be submitted to: Federal Communications
    Commission, Enforcement Bureau, Spectrum Enforcement Division, 445
    12th Street, S.W., Washington, D.C. 20554, Attention: Kathryn
    Berthot, Room 7-C802.

18. **IT IS FURTHER ORDERED** that a copy of this *Notice of Apparent
    Liability for Forfeiture and Order* shall be sent by first class
    mail and certified mail return receipt requested to Gert A. Van de
    Weerd, President, Johannus Orgelbouw b.v., Keplerlaan 2, 6726 BS
    EDE, The Netherlands.

FEDERAL COMMUNICATIONS COMMISSION

David H. Solomon

Chief, Enforcement Bureau

Attachment A

+--------------------------------+-------------------------------------+
| **FCC List of Small Entities** |                                     |
|                                |                                     |
| **As described below, a "small |                                     |
| entity" may be a small         |                                     |
| organization,**                |                                     |
|                                |                                     |
| **a small governmental         |                                     |
| jurisdiction, or a small       |                                     |
| business.**                    |                                     |
+--------------------------------+-------------------------------------+
| **(1) Small Organization**     |                                     |
+--------------------------------+-------------------------------------+
| **Any not-for-profit           |                                     |
| enterprise that is             |                                     |
| independently owned and        |                                     |
| operated and**                 |                                     |
|                                |                                     |
| **is not dominant in its       |                                     |
| field.**                       |                                     |
+--------------------------------+-------------------------------------+
| **(2) Small Governmental       |                                     |
| Jurisdiction**                 |                                     |
+--------------------------------+-------------------------------------+
| **Governments of cities,       |                                     |
| counties, towns, townships,    |                                     |
| villages, school districts,    |                                     |
| or**                           |                                     |
|                                |                                     |
| **special districts, with a    |                                     |
| population of less than fifty  |                                     |
| thousand.**                    |                                     |
+--------------------------------+-------------------------------------+
| **(3) Small Business**         |                                     |
+--------------------------------+-------------------------------------+
| **Any business concern that is |                                     |
| independently owned and        |                                     |
| operated and**                 |                                     |
|                                |                                     |
| **is not dominant in its       |                                     |
| field, *and* meets the         |                                     |
| pertinent size criterion       |                                     |
| described below.**             |                                     |
+--------------------------------+-------------------------------------+
| **Industry Type**              | **Description of Small Business     |
|                                | Size Standards**                    |
+--------------------------------+-------------------------------------+
| ***Cable Services or           |                                     |
| Systems***                     |                                     |
+--------------------------------+-------------------------------------+
| Cable Systems                  | Special Size Standard --            |
|                                |                                     |
|                                | **Small Cable Company** has 400,000 |
|                                | Subscribers Nationwide or Fewer     |
+--------------------------------+-------------------------------------+
| Cable and Other Program        | \$12.5 Million in Annual Receipts   |
| Distribution                   | or Less                             |
+--------------------------------+-------------------------------------+
| Open Video Systems             |                                     |
+--------------------------------+-------------------------------------+
| ***Common Carrier Services and |                                     |
| Related Entities***            |                                     |
+--------------------------------+-------------------------------------+
| Wireline Carriers and Service  | 1,500 Employees or Fewer            |
| providers                      |                                     |
+--------------------------------+-------------------------------------+
| Local Exchange Carriers,       |                                     |
| Competitive Access Providers,  |                                     |
| Interexchange Carriers,        |                                     |
| Operator Service Providers,    |                                     |
| Payphone Providers, and        |                                     |
| Resellers                      |                                     |
+--------------------------------+-------------------------------------+
| **Note:** With the exception   |                                     |
| of Cable Systems, all size     |                                     |
| standards are expressed in     |                                     |
| either millions of dollars or  |                                     |
| number of employees and are    |                                     |
| generally the average annual   |                                     |
| receipts or the average        |                                     |
| employment of a firm.          |                                     |
| Directions for calculating     |                                     |
| average annual receipts and    |                                     |
| average employment of a firm   |                                     |
| can be found in                |                                     |
|                                |                                     |
| 13 CFR 121.104 and 13 CFR      |                                     |
| 121.106, respectively.         |                                     |
+--------------------------------+-------------------------------------+
| ***International Services***   |                                     |
+--------------------------------+-------------------------------------+
| International Broadcast        | \$12.5 Million in Annual Receipts   |
| Stations                       | or Less                             |
+--------------------------------+-------------------------------------+
| International Public Fixed     |                                     |
| Radio (Public and Control      |                                     |
| Stations)                      |                                     |
+--------------------------------+-------------------------------------+
| Fixed Satellite                |                                     |
| Transmit/Receive Earth         |                                     |
| Stations                       |                                     |
+--------------------------------+-------------------------------------+
| Fixed Satellite Very Small     |                                     |
| Aperture Terminal Systems      |                                     |
+--------------------------------+-------------------------------------+
| Mobile Satellite Earth         |                                     |
| Stations                       |                                     |
+--------------------------------+-------------------------------------+
| Radio Determination Satellite  |                                     |
| Earth Stations                 |                                     |
+--------------------------------+-------------------------------------+
| Geostationary Space Stations   |                                     |
+--------------------------------+-------------------------------------+
| Non-Geostationary Space        |                                     |
| Stations                       |                                     |
+--------------------------------+-------------------------------------+
| Direct Broadcast Satellites    |                                     |
+--------------------------------+-------------------------------------+
| Home Satellite Dish Service    |                                     |
+--------------------------------+-------------------------------------+
| ***Mass Media Services***      |                                     |
+--------------------------------+-------------------------------------+
| Television Services            | \$12 Million in Annual Receipts or  |
|                                | Less                                |
+--------------------------------+-------------------------------------+
| Low Power Television Services  |                                     |
| and Television Translator      |                                     |
| Stations                       |                                     |
+--------------------------------+-------------------------------------+
| TV Auxiliary, Special          |                                     |
| Broadcast and Other Program    |                                     |
| Distribution Services          |                                     |
+--------------------------------+-------------------------------------+
| Radio Services                 | \$6 Million in Annual Receipts or   |
|                                | Less                                |
+--------------------------------+-------------------------------------+
| Radio Auxiliary, Special       |                                     |
| Broadcast and Other Program    |                                     |
| Distribution Services          |                                     |
+--------------------------------+-------------------------------------+
| Multipoint Distribution        | Auction Special Size Standard --    |
| Service                        |                                     |
|                                | **Small Business** is less than     |
|                                | \$40M in annual gross revenues for  |
|                                | three preceding years               |
+--------------------------------+-------------------------------------+
| ***Wireless and Commercial     |                                     |
| Mobile Services***             |                                     |
+--------------------------------+-------------------------------------+
| Cellular Licensees             | 1,500 Employees or Fewer            |
+--------------------------------+-------------------------------------+
| 220 MHz Radio Service -- Phase |                                     |
| I Licensees                    |                                     |
+--------------------------------+-------------------------------------+
| 220 MHz Radio Service -- Phase | Auction special size standard -     |
| II Licensees                   |                                     |
|                                | **Small Business** is average gross |
|                                | revenues of \$15M or less for the   |
|                                | preceding three years (includes     |
|                                | affiliates and controlling          |
|                                | principals)                         |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$3M or less for  |
|                                | the preceding three years (includes |
|                                | affiliates and controlling          |
|                                | principals)                         |
+--------------------------------+-------------------------------------+
| 700 MHZ Guard Band Licensees   |                                     |
+--------------------------------+-------------------------------------+
| Private and Common Carrier     |                                     |
| Paging                         |                                     |
+--------------------------------+-------------------------------------+
| Broadband Personal             | 1,500 Employees or Fewer            |
| Communications Services        |                                     |
| (Blocks A, B, D, and E)        |                                     |
+--------------------------------+-------------------------------------+
| Broadband Personal             | Auction special size standard -     |
| Communications Services (Block |                                     |
| C)                             | **Small Business** is \$40M or less |
|                                | in annual gross revenues for three  |
|                                | previous calendar years             |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$15M or less for |
|                                | the preceding three calendar years  |
|                                | (includes affiliates and persons or |
|                                | entities that hold interest in such |
|                                | entity and their affiliates)        |
+--------------------------------+-------------------------------------+
| Broadband Personal             |                                     |
| Communications Services (Block |                                     |
| F)                             |                                     |
+--------------------------------+-------------------------------------+
| Narrowband Personal            |                                     |
| Communications Services        |                                     |
+--------------------------------+-------------------------------------+
| Rural Radiotelephone Service   | 1,500 Employees or Fewer            |
+--------------------------------+-------------------------------------+
| Air-Ground Radiotelephone      |                                     |
| Service                        |                                     |
+--------------------------------+-------------------------------------+
| 800 MHz Specialized Mobile     | Auction special size standard -     |
| Radio                          |                                     |
|                                | **Small Business** is \$15M or less |
|                                | average annual gross revenues for   |
|                                | three preceding calendar years      |
+--------------------------------+-------------------------------------+
| 900 MHz Specialized Mobile     |                                     |
| Radio                          |                                     |
+--------------------------------+-------------------------------------+
| Private Land Mobile Radio      | 1,500 Employees or Fewer            |
+--------------------------------+-------------------------------------+
| Amateur Radio Service          | N/A                                 |
+--------------------------------+-------------------------------------+
| Aviation and Marine Radio      | 1,500 Employees or Fewer            |
| Service                        |                                     |
+--------------------------------+-------------------------------------+
| Fixed Microwave Services       |                                     |
+--------------------------------+-------------------------------------+
| Public Safety Radio Services   | **Small Business** is 1,500         |
|                                | employees or less                   |
|                                |                                     |
|                                | **Small Government Entities** has   |
|                                | population of less than 50,000      |
|                                | persons                             |
+--------------------------------+-------------------------------------+
| Wireless Telephony and Paging  | 1,500 Employees or Fewer            |
| and Messaging                  |                                     |
+--------------------------------+-------------------------------------+
| Personal Radio Services        | N/A                                 |
+--------------------------------+-------------------------------------+
| Offshore Radiotelephone        | 1,500 Employees or Fewer            |
| Service                        |                                     |
+--------------------------------+-------------------------------------+
| Wireless Communications        | **Small Business** is \$40M or less |
| Services                       | average annual gross revenues for   |
|                                | three preceding years               |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$15M or less for |
|                                | the preceding three years           |
+--------------------------------+-------------------------------------+
| 39 GHz Service                 |                                     |
+--------------------------------+-------------------------------------+
| Multipoint Distribution        | Auction special size standard       |
| Service                        | (1996) --                           |
|                                |                                     |
|                                | **Small Business** is \$40M or less |
|                                | average annual gross revenues for   |
|                                | three preceding calendar years      |
|                                |                                     |
|                                | Prior to Auction --                 |
|                                |                                     |
|                                | **Small Business** has annual       |
|                                | revenue of \$12.5M or less          |
+--------------------------------+-------------------------------------+
| Multichannel Multipoint        | \$12.5 Million in Annual Receipts   |
| Distribution Service           | or Less                             |
+--------------------------------+-------------------------------------+
| Instructional Television Fixed |                                     |
| Service                        |                                     |
+--------------------------------+-------------------------------------+
| Local Multipoint Distribution  | Auction special size standard       |
| Service                        | (1998) --                           |
|                                |                                     |
|                                | **Small Business** is \$40M or less |
|                                | average annual gross revenues for   |
|                                | three preceding years               |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$15M or less for |
|                                | the preceding three years           |
+--------------------------------+-------------------------------------+
| 218-219 MHZ Service            | First Auction special size standard |
|                                | (1994) --                           |
|                                |                                     |
|                                | **Small Business** is an entity     |
|                                | that, together with its affiliates, |
|                                | has no more than a \$6M net worth   |
|                                | and, after federal income taxes     |
|                                | (excluding carryover losses) has no |
|                                | more than \$2M in annual profits    |
|                                | each year for the previous two      |
|                                | years                               |
|                                |                                     |
|                                | New Standard --                     |
|                                |                                     |
|                                | **Small Business** is average gross |
|                                | revenues of \$15M or less for the   |
|                                | preceding three years (includes     |
|                                | affiliates and persons or entities  |
|                                | that hold interest in such entity   |
|                                | and their affiliates)               |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$3M or less for  |
|                                | the preceding three years (includes |
|                                | affiliates and persons or entities  |
|                                | that hold interest in such entity   |
|                                | and their affiliates)               |
+--------------------------------+-------------------------------------+
| Satellite Master Antenna       | \$12.5 Million in Annual Receipts   |
| Television Systems             | or Less                             |
+--------------------------------+-------------------------------------+
| 24 GHz -- Incumbent Licensees  | 1,500 Employees or Fewer            |
+--------------------------------+-------------------------------------+
| 24 GHz -- Future Licensees     | **Small Business** is average gross |
|                                | revenues of \$15M or less for the   |
|                                | preceding three years (includes     |
|                                | affiliates and persons or entities  |
|                                | that hold interest in such entity   |
|                                | and their affiliates)               |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$3M or less for  |
|                                | the preceding three years (includes |
|                                | affiliates and persons or entities  |
|                                | that hold interest in such entity   |
|                                | and their affiliates)               |
+--------------------------------+-------------------------------------+
| ***Miscellaneous***            |                                     |
+--------------------------------+-------------------------------------+
| On-Line Information Services   | \$18 Million in Annual Receipts or  |
|                                | Less                                |
+--------------------------------+-------------------------------------+
| Radio and Television           | 750 Employees or Fewer              |
| Broadcasting and Wireless      |                                     |
| Communications Equipment       |                                     |
| Manufacturers                  |                                     |
+--------------------------------+-------------------------------------+
| Audio and Video Equipment      |                                     |
| Manufacturers                  |                                     |
+--------------------------------+-------------------------------------+
| Telephone Apparatus            | 1,000 Employees or Fewer            |
| Manufacturers (Except          |                                     |
| Cellular)                      |                                     |
+--------------------------------+-------------------------------------+
| Medical Implant Device         | 500 Employees or Fewer              |
| Manufacturers                  |                                     |
+--------------------------------+-------------------------------------+
| Hospitals                      | \$29 Million in Annual Receipts or  |
|                                | Less                                |
+--------------------------------+-------------------------------------+
| Nursing Homes                  | \$11.5 Million in Annual Receipts   |
|                                | or Less                             |
+--------------------------------+-------------------------------------+
| Hotels and Motels              | \$6 Million in Annual Receipts or   |
|                                | Less                                |
+--------------------------------+-------------------------------------+
| Tower Owners                   | (See Lessee's Type of Business)     |
+--------------------------------+-------------------------------------+

[^1]: 47 U.S.C. § 302a(b).

[^2]: 47 C.F.R. § 2.803(a).

[^3]: 47 C.F.R. § 2.956(a)(1).

[^4]: Specifically, the complainant stated that it purchased a Johannus
    Rembrandt Model 370 organ, tested the device, and concluded that it
    did not comply with the radiated emission limits for Class B digital
    devices. The complainant also alleged that the Johannus organs do
    not comply with the Part 15 labeling and user manual requirements.

[^5]: Letter to Johannus Orgelbouw b.v. from Joseph P. Casey, Chief,
    Technical and Public Safety Division, Enforcement Bureau (June 18,
    2003).

[^6]: Letter to Enforcement Bureau, Technical and Public Safety
    Division, from Gert A. Van de Weerd, President, Johannus Orgelbouw
    b.v. (June 26, 2003).

[^7]: Letter to Enforcement Bureau, Technical and Public Safety
    Division, from Gert A. Van de Weerd, President, Johannus Orgelbouw
    b.v. (July 10, 2003) ("July 10 Letter").

[^8]: Letter to Enforcement Bureau, Technical and Public Safety
    Division, from Gert A. Van de Weerd, President, Johannus Orgelbouw
    b.v. (July 30, 2003) ("July 30 Letter").

[^9]: Letter to Enforcement Bureau, Technical and Public Safety
    Division, from Gert A. Van de Weerd, President, Johannus Orgelbouw
    b.v. (September 2, 2003) ("September 2 Letter").

[^10]: September 2 Letter ("We sell and install about 3-13 organs a
    month in the USA and Canada, mainly to churches, but also to concert
    halls and cemeteries.").

[^11]: July 30 Letter ("As far as we know today, the source of the
    violation is a modification on the CPU board. We added an extra
    track of 3,4 volt power supply. Unfortunately this track became an
    antenna. Neutral and Line Disturbance tests remained ok, while the
    test of the Horizontal Polarization showed only a small violation on
    229,4 MHz of -1.54 dB. The Vertical Polarization test however showed
    the bad results.").

[^12]: July 10 Letter ("We believe that the modifications which are the
    reason, that some of our organs were violating FCC rules, have been
    done between July and October 2002. The modifications have been
    built in limited numbers of organs. Some of them have been shipped
    to the US and probably you have seen a test of one of them."). In
    its July 10 Letter, Johannus also provided test results for one of
    its organs which showed that the organ was not in compliance with
    the radiated emission limits for Class A digital devices. Johannus
    did not specify which organ model it tested, but it appears that the
    non-compliant organ was one of its Rembrandt model organs, which
    Johannus states is one of its best selling organs in the U.S.

[^13]: July 30 Letter ("If necessary we will be able to modify the
    suspected organs by exchanging the CPU boards. Also the few organs
    (About 7-10 pieces are far I can find out at the moment. However,
    some of them must be ok.) who are on the way -- on the ocean or in
    the USA -, can easily be modified when they arrive and we also have
    discovered, which of them are faulty.").

[^14]: July 10 Letter.

[^15]: September 2 Letter.

[^16]: *Id*.

[^17]: *See* footnotes 11-12, *supra*.

[^18]: Section 312(f)(2) of the Act provides that "\[t\]he term
    'repeated,' ... means the commission or omission of such act more
    than once or, if such commission or omission is continuous, for more
    than one day." 47 U.S.C. § 312(f)(2).

[^19]: 47 C.F.R. § 15.109. Based on Johannus's responses to our LOI, it
    appears that Johannus imported and marketed organs that did not
    comply with the radiated emission limits for Class A digital
    devices. However, as explained in paragraph 7, we find that
    Johannus's organs are actually Class B digital devices and therefore
    must comply with the more stringent emission limits applicable to
    such devices.

[^20]: 47 U.S.C. § 503(b).

[^21]: 47 U.S.C. § 503(b)(2)(D).

[^22]: 12 FCC Rcd 17087 (1997), *recon. denied* 15 FCC Rcd 303 (1999).

[^23]: 47 C.F.R. § 1.80.

[^24]: 47 C.F.R. § 15.3(h).

[^25]: 47 C.F.R. § 15(i).

[^26]: *See* 47 C.F.R. § 15.19.

[^27]: *See* 47 C.F.R. § 15.105.

[^28]: 47 C.F.R. § 2.955.

[^29]: 47 C.F.R. § 0.111, 0.311 and 1.80.

[^30]: *See* 47 C.F.R. § 1.1914.