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Silicondust USA, Inc.

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Released: August 20, 2012

Federal Communications Commission

DA 12-1108

Before the

Federal Communications Commission

Washington, D.C. 20554

)
File No.: EB-10-SE-019
In the Matter of
)
)
Acct. No.: 201232100032
Silicondust USA, Inc.
)
)
FRN: 0021901046

ORDER

Adopted: August 20, 2012

Released: August 20, 2012
By the Chief, Enforcement Bureau:
1.
In this Order, we adopt the attached Consent Decree entered into between the
Enforcement Bureau (Bureau) of the Federal Communications Commission (Commission) and
Silicondust USA, Inc. (Silicondust). The Consent Decree resolves and terminates the Bureau’s
investigation into Silicondust’s compliance with Section 302(b) of the Communications Act of 1934, as
amended (Act),1 and Sections 2.803 and 15.19 of the Commission’s rules (Rules)2 pertaining to the
marketing of television broadcast receivers.
2.
The Bureau and Silicondust have negotiated the Consent Decree that resolves this matter.
A copy of the Consent Decree is attached hereto and incorporated herein by reference.
3.
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
investigation.
4.
In the absence of material new evidence relating to this matter, we conclude that our
investigation raises no substantial or material questions of fact as to whether Silicondust possesses the
basic qualifications, including those related to character, to hold or obtain any Commission license or
authorization.
5.
Accordingly,

IT IS ORDERED

that, pursuant to Sections 4(i) and 503(b) of the Act,3
and Sections 0.111 and 0.311 of the Rules,4 the Consent Decree attached to this Order

IS ADOPTED

.


1 47 U.S.C. § 302a(b).
2 47 C.F.R. §§ 2.803, 15.19.
3 47 U.S.C. §§ 154(i), 503(b).
4 47 C.F.R. §§ 0.111, 0.311.

Federal Communications Commission

DA 12-1108

6.

IT IS FURTHER ORDERED

that the above-captioned investigation

IS

TERMINATED

.
7.

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 Theodore D. Head, President and
CEO, Silicondust USA, Inc., 5662 La Ribera St., Suite C, Livermore, CA 94550, and to Stephanie Blair,
Esq., and Otto Lee, Esq., counsel for Silicondust USA, Inc., Intellectual Property Law Group, LLP, 12
South First Street, 12th Floor, San Jose, CA 95113.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief, Enforcement Bureau
2

Federal Communications Commission

DA 12-1108

Before the

Federal Communications Commission

Washington, D.C. 20554

)
File No.: EB-10-SE-019
In the Matter of
)
)
Acct. No.: 201232100032
Silicondust USA, Inc.
)
)
FRN: 0021901046

CONSENT DECREE

The Enforcement Bureau of the Federal Communications Commission and Silicondust USA, Inc.,
by their authorized representatives, hereby enter into this Consent Decree for the purpose of terminating
the Enforcement Bureau’s investigation into possible violations of Section 302(b) of the Communications
Act of 1934, as amended,1 and Sections 2.803 and 15.19 of the Commission’s rules2 pertaining to the
marketing of television broadcast receivers.

I.

DEFINITIONS

1.
For the purposes of this Consent Decree, the following definitions shall apply:
(a)
“Act” means the Communications Act of 1934, as amended, 47 U.S.C. § 151 et
seq.

(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)
“Communications Laws” means collectively, the Act, the Rules, and the published
and promulgated orders and decisions of the Commission to which Silicondust is
subject by virtue of its business activities, including but not limited to, the
Equipment Marketing Rules.
(e)
“Commission” and “FCC” mean the Federal Communications Commission and all
of its bureaus and offices.
(f)
“Compliance Plan” means the compliance obligations, programs, and procedures
described in this Consent Decree at paragraph 9.
(g)
“Covered Employees” means all employees and agents of Silicondust who
perform, or supervise, oversee, or manage the performance of, duties that relate to
Silicondust’s responsibilities under the Equipment Marketing Rules.


1 47 U.S.C. § 302a(b).
2 47 C.F.R. §§ 2.803, 15.19.

Federal Communications Commission

DA 12-1108

(h)
“Effective Date” means the date on which the Bureau releases the Adopting Order.
(i)
“Equipment Marketing Rules” means Section 302(b) of the Act3 and Sections
2.803 and 15.19 of the Rules4 and other Communications Laws governing the
marketing of radio frequency devices within the United States and its territories.
(j)
“Investigation” means the investigation commenced by the Bureau’s March 18,
2010, letter of inquiry5 regarding whether the marketing of certain digital television
receivers by Silicondust complies with the Equipment Marketing Rules.
(k)
“Operating Procedures” means the standard, internal operating procedures and
compliance policies established by Silicondust to implement the Compliance Plan.
(l)
“Parties” means Silicondust and the Bureau, each of which is a “Party.”
(m) “Rules” means the Commission’s regulations found in Title 47 of the Code of
Federal Regulations.
(n)
“Silicondust” means Silicondust USA, Inc., and its predecessors-in-interest and
successors-in-interest.

II.

BACKGROUND

2.
Pursuant to Section 302(b) of the Act6 and Section 2.803 of the Rules,7 certain
unintentional radiators8 may not be marketed in the United States unless the devices comply with the
applicable technical standards as well as the administrative requirements relating to equipment labeling
and consumer disclosure. Silicondust imports and markets a broadcast television receiver,9 the HD
HomeRun television tuner model,10 that is designed to connect directly to a television antenna and to a
computer for the purpose of delivering digital television to the monitor of a personal computer. As an
unintentional radiator, this device is subject to authorization via the Commission’s equipment verification
procedures.11 Devices subject to the verification procedures must, among other requirements, be labeled


3 47 U.S.C. § 302a(b).
4 47 C.F.R. §§ 2.803, 15.19.
5 See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, to
Theodore D. Head, President and Chief Operating Officer, Silicondust USA, Inc. (Mar. 18, 2010) (on file in EB-10-
SE-019).
6 47 U.S.C. § 302a(b).
7 47 C.F.R. § 2.803.
8 See id. § 15.3(z) (defining “unintentional radiator” as a “device that intentionally generates radio frequency energy
for use within the device, or that sends radio frequency signals by conduction to associated equipment via
connecting wiring, but which is not intended to emit RF energy by radiation or induction”).
9 See id. § 15.3(w) (defining “television (TV) broadcast receiver” as a “device designed to receive television pictures
that are broadcast simultaneously with sound on the television channels authorized under part 73 of this chapter”).
10 Silcondust sells two tuner models under the moniker, HDHomeRun, with either one or two tuners. The physical
differences between these two models do not result in differences in the emanation characteristics of the devices,
and therefore, under Section 2.953(d) of the Rules, 47 C.F.R. § 2.953(d), the two models may be verified under a
single verification. Accordingly, for the purpose of this Consent Decree, the two HDHomeRun models marketed by
Silicondust are treated as a single model.
11 See id. § 15.101.
2

Federal Communications Commission

DA 12-1108

in accordance with Section 15.19 of the Rules.12 Under Section 15.19(a)(1) of the Rules, receivers
operating in the broadcast services must be labeled, in a conspicuous location, with the following
statement: “This device complies with part 15 of the FCC Rules. Operation is subject to the condition
that this device does not cause harmful interference.”13 As the importer of the device, Silicondust is
responsible for the device’s compliance with the applicable technical standards and administrative
requirements, including Section 15.19 of the Rules.14
3.
On March 18, 2010, the Bureau’s Spectrum Enforcement Division issued a letter of
inquiry (LOI) to Silicondust,15 directing the company to submit a sworn written response to a series of
questions relating to Silicondust’s manufacture, importation, and marketing of digital television receivers.
Silicondust responded to the LOI on May 10, 2010 (LOI Response).16 In its LOI Response, Silicondust
submitted information and documentation relating to the HD HomeRun tuner model, including
documentation demonstrating that the model had been properly verified before marketing.17 Silicondust
acknowledged, however, that it had not included the language required by Section 15.19(a)(1) of the
Rules on the labels for this model because it mistakenly believed that the Rule did not apply to its HD
HomeRun television tuner model.18 Silicondust subsequently submitted an affidavit certifying that as of
April 14, 2010, its HD HomeRun television tuner model devices were labeled in accordance with Section
15.19(a)(1).19 Silicondust also reported that, upon receipt of the LOI, the company had updated the
model’s online instruction manual with the language set forth in Section 15.19(a)(1).20 The Bureau and
Silicondust executed tolling agreements to toll the statute of limitations.21

III.

TERMS OF AGREEMENT

4.

Adopting Order

. The Parties agree that the provisions of this Consent Decree shall be
subject to final approval by the Bureau by incorporation of such provisions by reference in the Adopting
Order.
5.

Jurisdiction

. Silicondust agrees that the Bureau has jurisdiction over it and the matters
contained in this Consent Decree and that the Bureau has the authority to enter into and adopt this
Consent Decree.


12 Id. § 15.19.
13 Id. § 15.19(a)(1).
14 See id.§ 2.909(b) (defining the “responsible party” for equipment subject to verification as the equipment
manufacturer, the importer, or if the device is modified by any party not working under the authority of the
responsible party, the party performing the modification).
15 See supra note 5.
16 See Letter from Otto O. Lee, counsel for Silicondust USA, Inc., to Ricardo Durham, Senior Deputy Chief, and
Nissa Laughner, Attorney Advisor, Spectrum Enforcement Division, FCC Enforcement Bureau (May 10, 2010) (on
file in EB-10-SE-019).
17 See id. at 4 and Exhibit C.
18 See id.
19 Affidavit of Theodore D. Head, President and Chief Executive Officer, Silicondust USA, Inc. (Mar. 23, 2012).
20 See LOI Response at 4 and Exhibit C.
21 See, e.g., Tolling Agreement Extension, File No. EB-10-SE-019, executed by and between John D. Poutasse,
Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, and Theodore Head, President and Chief
Executive Officer, Silicondust USA, Inc. (June 27, 2012).
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Federal Communications Commission

DA 12-1108

6.

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 Adopting Order and this
Consent Decree shall have the same force and effect as any other order of the Commission. Any violation
of the Adopting Order or of the terms of this Consent Decree shall constitute a separate violation of a
Commission order, entitling the Commission to exercise any rights and remedies attendant to the
enforcement of a Commission order.
7.

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, Silicondust agrees to
the terms, conditions, and procedures contained herein. The Bureau further agrees that in the absence of
new material evidence, the Bureau 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 Silicondust 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
take any action on its own motion against Silicondust with respect to Silicondust’s basic qualifications,
including its character qualifications, to be a Commission licensee or to hold Commission licenses or
authorizations.
8.

Compliance Officer.

Within thirty (30) calendar days after the Effective Date,
Silicondust shall designate a senior corporate manager with the requisite corporate and organizational
authority to serve as 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 Silicondust 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/her duties under this Consent Decree, the Compliance
Officer shall have specific knowledge of the Equipment Marketing Rules prior to assuming his/her duties.
9.

Compliance Plan

. For purposes of settling the matters set forth herein, Silicondust
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,
Silicondust shall implement the following procedures:
(a)

Operating Procedures on Equipment Marketing

. Within sixty (60) calendar
days after the Effective Date, Silicondust shall establish Operating Procedures that
all Covered Employees must follow to help ensure Silicondust’s compliance with
the Equipment Marketing Rules. Silicondust’s Operating Procedures shall include
internal procedures and policies specifically designed to ensure that all television
broadcast receivers and all other radio frequency devices marketed by Silicondust
have been properly authorized (via the certification, verification, or declaration of
conformity procedures, as applicable), comply with applicable technical standards,
and comply with the applicable administrative requirements relating to equipment
labeling and consumer disclosure.
(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 Silicondust’s compliance with the Equipment Marketing
4

Federal Communications Commission

DA 12-1108

Rules. Silicondust shall periodically review and revise the Compliance Manual as
necessary to ensure that the information set forth therein remains current and
complete. Silicondust shall distribute any revisions to the Compliance Manual
promptly to all Covered Employees.
(c)

Compliance Training Program

. Silicondust shall establish and implement a
Compliance Training Program on compliance with the Equipment Marketing Rules
and the Operating Procedures. As part of the Compliance Training Program,
Covered Employees shall be advised of Silicondust’s obligation to report any
noncompliance with the Equipment Marketing Rules under paragraph 10 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
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 Effective Date shall be trained within thirty (30) calendar days after the date
such person becomes a Covered Employee. Silicondust shall repeat the 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.
10.

Reporting Noncompliance

. Silicondust 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 Silicondust 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
Silicondust has taken or will take to prevent the recurrence of any such noncompliance. All reports of
noncompliance shall be submitted to the Chief, Spectrum Enforcement Division, Enforcement Bureau,
Federal Communications Commission, Room 3-C366, 445 12th Street, S.W. Washington, D.C. 20554,
with a copy submitted electronically to Nissa Laughner at Nissa.Laughner@fcc.gov and to Ricardo
Durham at Ricardo.Durham@fcc.gov.
11.

Compliance Reports

. Silicondust shall file Compliance Reports with the Commission
ninety (90) calendar days after the Effective Date, twelve (12) months after the Effective Date, and
twenty-four (24) months after the Effective Date.
(a) Each compliance report shall include a detailed description of Silicondust’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 Silicondust, stating that the Compliance Officer has personal knowledge that
Silicondust (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 10 hereof.
(b) The Compliance Officer’s certification shall be accompanied by a statement
explaining the basis for such certification and must comply with Section 1.16 of the
Rules22 and be subscribed to as true under penalty of perjury in substantially the form
set forth therein.


22 47 C.F.R. § 1.16.
5

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DA 12-1108

(c) If the Compliance Officer cannot provide the requisite certification, the Compliance
Officer, as an agent of and on behalf of Silicondust, 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 Silicondust 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 Silicondust 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 the Chief, Spectrum Enforcement
Division, Enforcement Bureau, Federal Communications Commission, 445 12th
Street, S.W., Washington, D.C. 20554, with a copy submitted electronically to Nissa
Laughner at Nissa.Laughner@fcc.gov and to Ricardo Durham at
Ricardo.Durham@fcc.gov.
12.

Termination Date

. Unless stated otherwise, the requirements of paragraphs 8 through
11 of this Consent Decree shall expire twenty-four (24) months after the Effective Date.
13.

Voluntary Contribution

. Silicondust agrees that it will make a voluntary contribution
to the United States Treasury in the amount of two thousand eight hundred dollars ($2,800) within thirty
(30) calendar days after the Effective Date. Silicondust shall also send electronic notification of payment
to Nissa Laughner at Nissa.Laughner@fcc.gov, Ricardo Durham at Ricardo.Durham@fcc.gov, and
Samantha Peoples at Sam.Peoples@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 NAL/Account
number and FRN referenced above. Regardless of the form of payment, a completed FCC Form 159
(Remittance Advice) must be submitted.23 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 you should follow based on the form of payment
you select:
Ÿ
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.
Ÿ
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.
Ÿ
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.
If you have questions regarding payment procedures, please contact the Financial Operations Group Help
Desk by phone, 1-877-480-3201, or by e-mail, ARINQUIRIES@fcc.gov.


23 An FCC Form 159 and detailed instructions for completing the form may be obtained at
http://www.fcc.gov/Forms/Form159/159.pdf.
6

Federal Communications Commission

DA 12-1108

14.

Waivers

. Silicondust 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, provided the Bureau issues an Adopting Order as defined
herein. Silicondust 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 Adopting Order, neither Silicondust nor the Commission shall
contest the validity of the Consent Decree or of the Adopting Order, and Silicondust shall waive any
statutory right to a trial de novo. Silicondust hereby agrees to waive any claims it may have under the
Equal Access to Justice Act24 relating to the matters addressed in this Consent Decree.
15.

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.
16.

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 Silicondust does not expressly
consent) that provision will be superseded by such Rule or Commission order.
17.

Successors and Assigns

. Silicondust agrees that the provisions of this Consent Decree
shall be binding on its successors, assigns, and transferees.
18.

Final Settlement

. The Parties agree and acknowledge that this Consent Decree shall
constitute a final settlement between the Parties with respect to the Investigation. The Parties further
agree that this Consent Decree does not constitute either an adjudication on the merits or a factual or legal
finding or determination regarding any compliance or noncompliance with the Communications Laws.
19.

Modifications

. This Consent Decree cannot be modified without the advance written
consent of both Parties.
20.

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.
21.

Authorized Representative

. The individual signing this Consent Decree on behalf of
Silicondust represents and warrants that he is authorized by Silicondust to execute this Consent Decree
and to bind Silicondust to the obligations set forth herein. The FCC signatory represents that he is signing
this Consent Decree in his official capacity and that he is authorized to execute this Consent Decree.


24 Equal Access to Justice Act, Pub L. No 96-481, 94 Stat. 2325 (1980) (codified at 5 U.S.C. § 504); see also 47
C.F.R. §§ 1.1501-1.1530.
7

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DA 12-1108

22.

Counterparts

. This Consent Decree may be signed in any number of counterparts
(including by facsimile), each of which, when executed and delivered, shall be an original, and all of
which counterparts together shall constitute one and the same fully executed instrument.
________________________________
John D. Poutasse
Chief
Spectrum Enforcement Division
Enforcement Bureau
_______________________________
Date
_______________________________
Theodore D. Head
President and Chief Operating Officer
Silicondust USA, Inc.
______________________________
Date
8

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