Articles Posted in Noncommercial Operation

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Pillsbury’s communications lawyers have published the FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others.  This month’s issue includes:

  • CB Radio Operator’s Transmission of Indecipherable Sound Effects Leads to $25,000 Fine
  • Low Power FM Radio Licensee Enters Consent Decree Over Airing of Commercials
  • Interfering Bluetooth Speaker Leads FCC Field Agents to Florida Spa

Unauthorized CB Radio Use Results in $25,000 Fine

An Illinois Citizens Band Radio Service (CB) operator was fined $25,000 for engaging in unauthorized operation of a CB radio and willfully or maliciously causing interference.  Operating a CB radio no longer requires an FCC license, but its operation must still comply with all FCC rules.  Among the activities that are generally prohibited are transmission of one-way verbal communications, music and sound effects, and conversations longer than five minutes.

Section 95.933 of the FCC’s Rules also prohibits CB transmissions that include advertising for political candidates or for goods or services, and also prohibits transmitting live radio or TV broadcasts.  In this case, the violator transmitted nonverbal, indecipherable sound effects for long periods of time.  The resulting Forfeiture Order noted that unauthorized CB operations disrupt proper CB uses like “travelers’ assistance, warnings of hazardous road conditions, reporting accidents, etc.”

In the Notice of Apparent Liability (NAL) that preceded the Forfeiture Order, the FCC detailed the relevant facts, including complaints of transmissions of comedy routines, air raid siren sounds, and digital noises.  A visit to the area by an FCC field agent determined that unintelligible, data-like noises were coming from an antenna on the violator’s home.  The individual failed to respond to an on-scene Notice of Interference to Authorized Radio Stations left by the agent.  After subsequently receiving a Notice of Unlicensed Operation, the individual spoke with the regional office of the FCC’s Enforcement Bureau and claimed that a battery-operated transmitter inside a milk crate had been placed at a corner near his house.  He failed, however, to submit any documentation corroborating the existence of such a device.  On a second visit to the area, the field agent observed a data-like transmission similar to what was observed during the initial site visit but did not observe a transmitting milk crate.

The 2023 NAL described the individual’s history of non-compliance with FCC rules dating back to 1999, including his failure to pay a previous $14,000 fine.  The individual did not respond to the NAL, so the FCC proceeded to issuing a fine.

The FCC’s base fine for each day of unauthorized operation is $10,000, and for each day of interference is $7,000.  The Enforcement Bureau determined that the violations occurred on two days and assessed a fine of $25,000, the highest total fine the Enforcement Bureau is allowed to fine a non-common carrier under its delegated authority.  The individual has 30 days to pay the $25,000 fine, which will be made slightly more difficult by the fact that the FCC limits credit card payments to the agency to $24,999.99.

Low Power FM Station Signs Consent Decree Over Underwriting Violations

A Virginia low power FM (LPFM) radio licensee entered into a Consent Decree with the FCC to resolve issues related to airing commercial advertising.  The LPFM station’s license renewal application drew a Petition to Deny and informal objection making a number of allegations, including that the station participated in a prohibited operating agreement with other parties in violation of Section 73.860(e) of the FCC’s Rules, deviated from the educational purpose stated in the station’s initial construction permit (CP) application, made false certifications in the CP application, and regularly aired commercial announcements in violation of Section 399B of the Communications Act and Sections 73.503(d) and 73.801 of the FCC’s Rules. Continue reading →

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Pillsbury’s communications lawyers have published the FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others.  This month’s issue includes:

  • Seven-Figure Fine Proposed for Robocaller Targeting FCC Staff
  • FCC’s Enforcement Bureau Issues Payola Warning to Broadcasters
  • California Noncommercial TV Station Licensee Enters $25,000 Consent Decree to Wrap Up Investigation Into Multiple Rule Violations

FCC Proposes Seven-Figure Fine for Telecom Company Accused of Allowing Bad Actors to Use Its Network to Intimidate FCC Staff

The FCC proposed a multi-million dollar fine against a voice service provider accused of failing to prevent illegal voice traffic on its network.  Some of the pre-recorded calls targeted FCC staff and their families and purported to be from the FCC’s “Fraud Prevention Team,” which does not exist.  The calls attempted to extract money from the recipients through intimidation.

Under Section 64.1200(n)(4) of the FCC’s Rules, a voice service provider must take “affirmative, effective measures to prevent new and renewing customers from using its network to originate illegal calls, including knowing its customers and exercising due diligence in ensuring that its services are not used to originate illegal traffic.”  The rule gives voice service providers discretion as to how they police their own networks as long as the measures they put in place effectively prevent the origination of illegal traffic and ensure they know their customers.  Knowing your customer involves collecting and verifying customer information, including their corporate records, government identification, and the addresses from which they will be originating their calls.  The FCC has warned providers that high-volume callers merit heightened scrutiny to ensure they will not abuse the provider’s network.

In a redacted Notice of Apparent Liability for Forfeiture (NAL), the FCC detailed the parties involved in the alleged scheme, including the voice service provider and two of its customers.  The two customers were accepted as customers on the same day, and while they provided different names and email addresses, they both had the same physical address (a Toronto hotel) and used the same domain name.  According to the NAL, on the same day they were accepted as customers and into the next day, the two entities originated automated calls that reached FCC staff and sought to connect the recipients to a live caller who, in at least one case, demanded $1,000 in gift cards to help the caller avoid jail time for “crimes against the state.”

The FCC worked with the Industry Traceback Group to determine the origin of the suspected illegal robocalls.  The Enforcement Bureau then subpoenaed call records from the voice service provider and learned that the two customers made nearly 2,000 calls over the two days that FCC staff reported receiving calls.  The FCC’s investigation revealed that the information the customers provided to the voice service provider was false and that the voice service provider did not corroborate or independently verify the customers’ information, thereby failing to apply the scrutiny necessary for the company to know its customers.  The FCC noted that the customers paid the provider in untraceable bitcoin, which helped to conceal their identities, but said it was not a factor in the FCC’s finding of apparent rule violations. Continue reading →

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At its final Open Meeting of 2024, the FCC on December 11 adopted a Notice of Proposed Rulemaking (“NPRM”) seeking comment on the elimination or updating of several rules applicable to broadcast stations, as well as other changes intended to clarify ambiguities and to make the rules consistent with current procedures.

The NPRM covers minor rule updates, including:

  • Replacing references to the Consolidated Database System (CDBS), with references to the Licensing Management System (LMS);
  • Updating Form Names;
  • Updating inconsistent terminology referring to the Table of Assignments/Allotments;
  • Removing obsolete television Incentive Auction rule language; and
  • Consolidating rules for petitions to deny under Section 73.3584.

The FCC is also proposing to codify existing Commission interpretations and practices into the rules.  For example, the NPRM proposes to:

  • Codify the current practice of interpreting Section 73.870(e) to mean that LPFM minor modification applications received on the same day will be treated as simultaneously filed;
  • Update Section 73.807 to reflect the existing interpretation of the term “authorized” station as including construction permittees in addition to licensees;
  • Codify when applicants for new NCE FM, NCE TV, or LPFM construction permits must give local public notice of their applications; and
  • Codify the existing interpretation of the “Signature Rule” (Section 73.3513) allowing “directors” of corporations to sign FCC applications, and to expand the universe of who may sign an FCC application on behalf of a corporation, partnership, or unincorporated association to include a “duly authorized employee.”

With respect to more substantive revisions, the NPRM is proposing to: Continue reading →

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Pillsbury’s communications lawyers have published the FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others.  This month’s issue includes:

  • Late License Application Leads to $8,500 Consent Decree for Digital Replacement Translator Licensee
  • Hawaii TV Station’s Late Uploads Lead to Proposed $20,000 Fine
  • Key West LPTV Station Faces $6,500 Fine for Failure to File a License Application and Unauthorized Operation

Indiana Broadcaster Agrees to $8,500 Consent Decree for Unauthorized Operation and Untimely License Applications

The FCC’s Media Bureau and the licensee of a Digital Replacement Translator (DRT) for a television station entered into a Consent Decree to resolve an investigation into whether the licensee failed to file a timely license application for the DRT and subsequently engaged in unauthorized operation of it.

Section 73.3598 of the FCC’s Rules specifies that construction permits are valid for three years and requires that a license application must be filed upon completion of construction.  Section 73.1745 of the Rules requires a station to hold an FCC license to operate.

In this case, the Media Bureau granted a DRT construction permit in November 2019, with an expiration date in November 2022.  However, upon completion of construction, the licensee failed to file a license to cover application.  The licensee began operating the DRT in March 2020, but explained that it overlooked filing the application due to an “administrative oversight” that coincided with the beginning of the COVID-19 pandemic.  The licensee did not file a license to cover application until June 2024, more than four years after it began operating the facility and a year and a half after the construction permit expired.

The licensee filed a petition for reconsideration asking that its construction permit be reinstated and requesting permission to file a late license application.  The licensee explained that the facility was operating and providing viewers in the area improved reception of local news programming.  It asserted that terminating operation of the DRT would therefore not serve the public interest.

Acknowledging that the licensee had a history of compliance with the FCC’s rules, the Bureau agreed to enter into a Consent Decree with the licensee under which the licensee admitted that its actions were willful and repeated violations of the FCC’s rules, it agreed to pay a civil penalty of $8,500, and it committed to implement a multi-part compliance plan, including appointing a compliance officer, creating a compliance manual, training its employees, and submitting annual compliance reports to the Commission until the grant of its next license renewal application. Continue reading →

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Pillsbury’s communications lawyers have published the FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others.  This month’s issue includes:

  • National Cable Sports Network Draws Proposed Fine of $146,976 for Transmitting False EAS Tones
  • For-Profit Arrangement Lands Michigan Noncommercial Radio Station in Hot Regulatory Water
  • California LPFM Station Agrees to $9,000 Consent Decree for Numerous Rule Violations

FCC Proposes $146,976 Fine Against National Cable Sports Network for Transmitting False EAS Tones

The Federal Communications Commission issued a Notice of Apparent Liability for Forfeiture (NAL) to a cable sports network for violating the Commission’s Emergency Alert System (EAS) rules.  Specifically, the NAL alleged violations of Section 11.45 of the FCC’s Rules, which prohibits the transmission of false or deceptive EAS tones.

The EAS is a nationwide public warning system designed to alert the public in case of emergencies, such as severe weather warnings or AMBER alerts.  To maintain the effectiveness of such emergency alerts, EAS tones may only be aired for specific uses, such as actual emergencies, authorized tests, and qualified public service announcements (PSAs).  Section 11.45 strictly prohibits airing an EAS tone, or simulations of it, except in connection with these permitted uses.  The FCC takes false EAS tone violations particularly seriously, asserting that violations desensitize the public to legitimate EAS alerts.

In October 2023, the FCC received complaints alleging a cable network had transmitted EAS tones during a sports promotional video.  In January 2024, the Commission’s Enforcement Bureau sent a Letter of Inquiry requesting information about the incident.  The network responded, providing video recordings of the sports-related promo video that had aired for three days and admitting that it contained an EAS tone.  While the network argued the promo video contained fewer than two seconds of EAS tone, it did acknowledge that the tone was not aired in connection with an actual emergency, authorized test, qualified PSA, or other permitted use.  The network also acknowledged that the promo video aired six times over three days on two different networks.

Based on the network’s admissions and the FCC’s review of the video, the FCC found six apparent violations of Section 11.45 of the Commission’s Rules.  The FCC noted that while the two-second duration was shorter than a full EAS tone, it was long enough for viewers to recognize the sound as an EAS tone. Continue reading →

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The filing window for broadcast station Biennial Ownership Reports (FCC Form 323 for commercial stations and 323-E for noncommercial stations) opened on October 2, 2023.  All licensees of commercial and noncommercial AM, FM, full-power TV, Class A TV and Low Power TV stations must submit their Ownership Reports by December 1, 2023.

To simplify the process, the FCC’s filing system permits parties to validate and resubmit previously filed ownership reports so long as those reports were submitted through the current filing system and remain accurate.  Parties also have the ability to copy and then make changes to information included in a previously-filed report.  To facilitate this approach, there is a search page allowing filers to search for and review their prior Ownership Reports.

For additional information on preparing and filing Biennial Ownership Reports, note that the FCC hosted a video information session in 2021 which is available at Information Session on Filing Biennial Ownership Reports, Forms 323 and 323-E.  A PDF copy of the presentation materials is available here.

As a reminder, Biennial Ownership Reports submitted during this filing window must reflect a station’s ownership as it existed on October 1, 2023, even if the station was later assigned or transferred between October 1, 2023 and December 1, 2023.  Should you need assistance preparing and filing your Biennial Ownership Reports, please contact your Pillsbury counsel or any of the attorneys in Pillsbury’s Communications Practice.

A PDF of this article can be found at Broadcast Station Biennial Ownership Reports Due December 1, 2023.

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Pillsbury’s communications lawyers have published FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others.  This month’s issue includes:

  • Foreign Ownership Violation by Telecommunications Provider Leads to $50,000 Penalty and Four-Year Compliance Plan
  • Arizona LPFM Station Hit with $20,000 Penalty and $41,500 Suspended Penalty for Underwriting Violations
  • Unauthorized Station Transfers Result in $8,000 Consent Decree

Telecommunications Provider to Pay $50,000 and Implement Four-Year Compliance Plan After Foreign Ownership Violations

A Guam-based telecommunications provider (Telecom Provider) settled an investigation by the Federal Communications Commission (FCC) into its ownership structure by entering into a consent decree that requires a $50,000 payment to the government and implementation of a 48-month compliance plan.  The Telecom Provider holds domestic and international Section 214 authorizations, 84 wireless licenses, three submarine cable licenses, and an earth station satellite license.  The FCC’s investigation concerned the Telecom Provider’s ownership, which includes two foreign corporations and a foreign government’s finance ministry.

Section 310(b)(4) of the Communications Act of 1934, as amended (Act), places a 25 percent limit on ownership by foreign individuals, corporations, and governments in U.S.-organized entities controlling common carrier licensees.  Under the Act, the FCC may permit higher levels of foreign ownership of an FCC licensee if it determines it is not contrary to the public interest.  Since 2013, FCC approval has also been required for any foreign individual or entity not previously approved by the FCC to acquire more than a five percent equity or voting interest in the entity.  These public interest determinations by the FCC incorporate input from a federal Executive Branch review of national security, law enforcement, foreign policy, and trade policy concerns conducted by a multi-agency group known as Team Telecom.

In 2015, the FCC granted an application that allowed the Telecom Provider to have 100 percent foreign ownership consisting of a parent entity two steps up in the ownership chain (Indirect Parent Entity) (owning up to 65.15 percent of the equity and voting interests) and the finance ministry (owning up to 26.95 percent of the equity interests and 41.53 percent of the voting interests).  Five years later, the Indirect Parent Entity commenced a tender offer for outstanding shares in the parent entity directly above the telecom provider (Direct Parent Entity).  Two months later, the Indirect Parent Entity acquired the tendered shares, which increased its indirect ownership interests in the Telecom Provider to 91.46 percent.  At the end of 2020, the Indirect Parent Entity also acquired all shares of the Direct Parent Entity’s common stock held by the remaining minority shareholders, resulting in it owning 100 percent of the equity and voting interests of the Telecom Provider.  These transactions led to the finance ministry having an indirect ownership interest in the Telecom Provider (held through Indirect Parent Entity) of 33.93 percent equity and voting.  The result was higher levels of foreign ownership in the Telecom Provider than had previously been approved by the FCC.

The Telecom Provider attempted to correct the problem by filing a Petition for Declaratory Ruling seeking approval for the Indirect Parent Entity and finance ministry to exceed their previously approved foreign ownership limits.  In late 2021, the International Bureau granted the Petition, but the FCC’s Enforcement Bureau pursued the prior foreign ownership violation, resulting in a Consent Decree with the Telecom Provider.

In addition to paying a $50,000 civil penalty for exceeding the foreign ownership levels approved by the FCC, the Telecom Provider must implement a plan to ensure compliance with the terms of the Consent Decree, including developing a compliance manual, administering employee compliance training, and submitting compliance reports to the Commission for four years regarding foreign ownership compliance.  During that time, the Telecom Provider must also report instances of noncompliance with the FCC’s foreign ownership rules and the terms of the Consent Decree within 15 days of discovering them.

Violations of Noncommercial Broadcast Underwriting Laws Result in $20,000 Penalty and a $41,500 Suspended Penalty for Low Power FM Station

The FCC’s Enforcement Bureau entered into a Consent Decree with the licensee of an Arizona LPFM station to resolve an investigation into violations of the FCC’s rules regarding underwriting.  Under the Consent Decree, the licensee agreed to implement a compliance plan and pay a $20,000 civil penalty, with a suspended civil penalty of $41,500 to be levied in the event of default. Continue reading →

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Pillsbury’s communications lawyers have published the FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others. This month’s issue includes:

  • Sports Entertainment Company’s Malfunctioning Microphone Interferes with Public Safety Communications
  • Florida Radio Application Dismissed Over Disclosure Issues
  • Late Issues/Programs Lists and Children’s Television Programming Reports Causes $18,000 Proposed Fine for Maryland Television Station

Notice of Violation Issued After Malfunctioning Wireless Microphone Transmits on Wrong Frequency

A sports entertainment company with dozens of locations across the country received a Notice of Violation from the FCC for causing interference to a city’s licensed wireless operations. FCC field agents investigating interference complaints using direction finding techniques located “drifting” radio emissions in the area and determined that the source was a malfunctioning wireless microphone used by the sports entertainment company in its local operations.

The microphone was causing interference to the city’s 800 MHz communication system, and as noted by the Enforcement Bureau, the sports entertainment company did not hold a license to operate the microphone on that frequency. The city used the 800 MHz facilities for public safety operations, making the interference particularly concerning.

Under the Notice of Violation, the company must respond within twenty days and (1) fully explain each violation, including all relevant surrounding facts and circumstances, (2) include a statement of the specific action(s) taken to correct each violation and prevent recurrence, and (3) include a timeline for completion of any pending corrective action(s). The Notice of Violation also indicated the possibility of further enforcement action “to ensure compliance.”

Applicant Loses Chance at Noncommercial Radio Station After Failing to Make Required Disclosures

An applicant seeking to build a new noncommercial educational (NCE) station in Florida saw its application dismissed after a petition to deny raised disclosure issues with it. The company filed the application in November 2021 during the most recent filing window for new NCE applications. Applicants with applications deemed to be mutually exclusive (MX) are given an opportunity to work together to resolve technical conflicts through settlement arrangements. If the conflicts are not resolved, the FCC compares and analyzes the competing applications and tentatively selects a winning application.

The FCC’s comparative analysis of MX NCE applications generally consists of three main components. When NCE FM applicants in an MX group propose service to different communities, the FCC performs a threshold fair distribution analysis under Section 307(b) of the Communications Act of 1934 to determine if one of the applicants is proposing service to an underserved area. Application conflicts that are not resolved under this “fair distribution” analysis are next compared by the FCC under an NCE point system, which is a simplified, “paper hearing” process. If necessary, the FCC then makes a tie-breaker determination, based on applicant-provided data and certifications. Continue reading →

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Pillsbury’s communications lawyers have published the FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others. This month’s issue includes:

  • LPFM Station Fined $15,000 for Airing Commercial Advertisements
  • FCC Issues Notices to the Landowners of Sixteen Pirate Radio Sites
  • Telecommunications Carrier Pays $227,200 To Resolve 911 Outage Investigation

Continue reading →

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Pillsbury’s communications lawyers have published the FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others. This month’s issue includes:

  • Failure to File License Renewal Application Results in Cancelled License
  • Call Provider Receives Cease-and-Desist Letter From FCC for Apparently Transmitting Illegal Robocalls
  • New York Broadcaster Agrees to Consent Decree for Violations Relating to the Public Inspection File

Continue reading →