FCC Enforcement Action and Proposed Forfeiture
On July 17, 2006, the Federal Communications Commission's Enforcement Bureau released a Notice of Apparent Liability for Forfeiture (DA 06-1442) against AboCom Systems, Inc., located in Hsinchu City, Taiwan. The Commission found AboCom apparently liable for a forfeiture of $25,000 for willful and repeated violations of Section 302(b) of the Communications Act of 1934, as amended, and Section 2.803(a) of the Commission's Rules.
The enforcement action stems from AboCom's manufacturing, shipment, and marketing of wireless access points that failed to comply with the terms of their equipment authorization and the technical standards set forth in Section 15.247(d) of the FCC Rules.
- File Number: EB-05-SE-334
- NAL/Acct. No.: 200632100017
- FRN: 0007031842
- Proposed Forfeiture Amount: $25,000
- Statutory and Rule Violations: Section 302(b) of the Communications Act; 47 C.F.R. Section 2.803(a)
Investigation and Laboratory Testing Findings
The inquiry began after the Enforcement Bureau received a report from Industry Canada stating that the Hawking Technology, Inc. Model HWRG54 wireless access point produced spurious emissions at 2.6 GHz, failing Canadian certification standards. AboCom manufactured this device for Hawking, as well as an identical unit designated as Model AR315W for Phoebe Micro, Inc.
The FCC's Office of Engineering and Technology (OET) Laboratory obtained and tested samples of the HWRG54. Laboratory testing confirmed that the devices produced spurious emissions on 2.6 GHz that substantially exceeded the limits established by Section 15.247(d). Furthermore, OET testing revealed that the HWRG54 was capable of operating on frequencies beyond the 2.412 to 2.482 GHz range authorized by its equipment grant.
- Affected Devices: Hawking Technology Model HWRG54 and Phoebe Micro Model AR315W
- Technical Deficiency: Excessive spurious emissions at 2.6 GHz violating 47 C.F.R. Section 15.247(d)
- Out-of-Band Operation: Capable of transmitting outside the authorized 2.412–2.482 GHz range
- Initial Report: Received from Industry Canada regarding non-compliance
Manufacturer Response and Legal Analysis
In response to an Enforcement Bureau Letter of Inquiry, AboCom confirmed that it manufactured the HWRG54 for Hawking beginning May 31, 2004, and the AR315W for Phoebe beginning May 12, 2004, shipping large quantities to both United States companies through late 2005. AboCom submitted a test report dated November 4, 2005, asserting compliance; however, the FCC found the report incomplete because it omitted measurement procedures as required by Section 2.947.
Under Section 2.931 of the Rules, grantees warrant that production units conform to tested certification data. The FCC concluded that AboCom marketed non-compliant devices in violation of federal regulations and equipment grant conditions.
- Shipment Period: May 2004 through October 2005
- Omissions: AboCom test report failed to specify required measurement procedures
- Regulatory Duty: Grantees warrant marketed devices conform to certified characteristics under 47 C.F.R. Section 2.931
Forfeiture Calculation and Upward Adjustment
The standard base forfeiture for marketing unauthorized radio frequency equipment is $7,000 under Section 1.80(b)(4) of the Commission's Rules. The Bureau applied an upward adjustment to $25,000 based on the statutory factors in Section 503(b)(2)(D) of the Act.
The upward adjustment was justified by the substantial volume of non-compliant devices distributed, the ongoing 17-month duration of the violations, and AboCom's significant revenues and ability to pay. The Commission ordered AboCom to either pay the proposed forfeiture or submit a written request for reduction or cancellation within 30 days.
- Base Forfeiture: $7,000
- Adjustment Factors: High volume of units, 17-month violation span, and company revenues
- Final Proposed Penalty: $25,000
- Compliance Window: 30 days to pay or file a response