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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                   )                               
                                                                   
                                   )   File No. EB-07-SE-023       
     In the Matter of                                              
                                   )   NAL/Acct. No. 200732100036  
     Syntax-Brillian Corporation                                   
                                   )   FRN # 0016507311            
                                                                   
                                   )                               


                              FORFEITURE ORDER and

                  notice of apparent liability for forfeiture

   Adopted: April 9, 2008 Released: April 10, 2008

   By the Commission:

   I. INTRODUCTION

    1. In this Forfeiture Order and Notice of Apparent Liability for
       Forfeiture, we issue a monetary forfeiture in the amount of one
       million, two hundred sixty six thousand, one hundred dollars
       ($1,266,100) against Syntax-Brillian Corporation ("Syntax-Brillian")
       for its willful and repeated violations of Sections 15.117(i)(1)(i)
       and (ii) of the Commission's rules ("Rules"). These violations involve
       Syntax-Brillian's importation and interstate shipment of television
       receivers that do not comply with the Commission's rules regarding
       digital television ("DTV") reception capability. In addition, we
       propose a forfeiture in the amount of eleven thousand dollars
       ($11,000) against Syntax-Brillian for providing to the Commission,
       during the course of staff's investigation of its violations of the
       DTV tuner requirement, material factual information that is incorrect
       without a reasonable basis for believing the material factual
       information was correct, in willful violation of Section 1.17(a)(2) of
       the Rules.

   II. background

    2. The Commission adopted the DTV reception capability requirement in
       2002. That requirement, which also is often termed the "DTV tuner
       requirement," requires that all new television broadcast receivers
       that are imported into the United States or shipped in interstate
       commerce be capable of receiving the signals of DTV broadcast stations
       over-the-air. The DTV tuner requirement was intended to facilitate the
       transition to digital television by promoting the availability of DTV
       reception equipment and to protect consumers by ensuring that their
       television receivers will provide off-the-air television reception of
       digital signals just as they have provided off-the-air television
       reception of analog signals.

    3. In order to minimize the impact of the DTV tuner requirement on both
       manufacturers and consumers, the Commission adopted a phase-in
       schedule that applied the requirement first to receivers with the
       largest screens and then to progressively smaller screen receivers and
       other television receiving devices without a viewing screen, i.e.,
       VCRs and DVD players. This phase-in plan was intended to allow
       increasing economies of scale with production volume to be realized so
       that DTV tuner costs would be lower when they were required to be
       included in smaller sets and other television receiving devices. As
       modified by the Commission in 2005, this phase-in schedule was as
       follows:

   Receivers with screen sizes 36" and above -- 50% of units imported or
   shipped interstate by responsible parties were required to include DTV
   tuners effective July 1, 2004; 100% of such units were required to include
   DTV tuners effective July 1, 2005;

   Receivers with screen sizes 25" to 35" -- 50% of units imported or shipped
   interstate by responsible parties were required to include DTV tuners
   effective July 1, 2005; 100% of such units were required to include DTV
   tuners effective March 1, 2006;

   Receivers with screen sizes less than 25" -- 100% of units imported or
   shipped interstate by responsible parties were required to include DTV
   tuners effective March 1, 2007; and

   Other video devices (videocassette recorders (VCRs), digital video
   recorders such as hard drive and DVD recorders, etc.) that receive
   television signals -- 100% of units imported or shipped interstate by
   responsible parties were required to include DTV tuners effective March 1,
   2007.

    4. In January 2007, the Enforcement Bureau's review of Customs
       importation data indicated that Syntax-Brillian apparently was
       importing television receivers with screen sizes 25" to 35" ("mid-size
       receivers") that did not include DTV tuners after the applicable March
       1, 2006 deadline. The Enforcement Bureau issued a letter of inquiry
       ("LOI") to Syntax-Brillian on March 8, 2007. On March 19, 2007,
       Syntax-Brillian filed a response to the LOI.

    5. On May 30, 2007, the Commission issued a Notice of Apparent Liability
       for Forfeiture ("NAL") proposing a forfeiture against Syntax-Brillian
       for its apparent willful and repeated violations of the DTV tuner
       requirements. Specifically, based on the company's LOI Response, the
       NAL found that after the July 1, 2005 deadline for large-size
       television receivers, Syntax-Brillian made eight interstate shipments
       of a total of 165 non-DTV compliant large-size screen receivers. In
       addition, the NAL found that after the March 1, 2006 deadline for
       mid-size screen receivers, it imported on 88 dates a total of 28,430
       non-DTV-compliant mid-size receivers and made 1,765 interstate
       shipments of a total of 43,892 non-DTV-compliant mid-size screen
       receivers. In total, the NAL found  that Syntax-Brillian imported and
       shipped interstate a total of 72,622 non-DTV-compliant television
       receivers on 1,861 occasions. The NAL further concluded that
       violations of the DTV tuner requirement would be subject to
       forfeitures on a per-unit, rather than a per model, basis because the
       important public policy goal of facilitating the transition to digital
       television rendered violations of the DTV tuner requirement more
       egregious than violations of other equipment marketing rules. Using a
       per-unit formula, the NAL therefore proposed a forfeiture of
       $2,899,575 against Syntax-Brillian for its DTV tuner violations.

    6. In its response to the NAL, Syntax Brillian acknowledges that it
       imported and shipped interstate both large-size and mid-size receivers
       that did not comply with the DTV tuner requirement. Syntax-Brillian
       maintains, however, that the Commission erred in issuing the NAL
       without first issuing a citation; that it did not violate the DTV
       tuner requirement because it followed the Commission's "policy" of
       labeling its non-DTV-compliant receivers as "HD-ready"; that the NAL
       and the per-unit forfeiture methodology violate the Administrative
       Procedure Act ("APA") and Syntax-Brillian's due process rights; that
       the forfeiture amount is excessive, violates the Eighth Amendment to
       the Constitution, and is inconsistent with Commission precedent; and
       that the Commission "breached" an agreement between the FCC and
       Syntax-Brillian to toll the statute of limitations for forfeiture
       actions. Further, Syntax-Brillian asserts that the forfeiture should
       be substantially reduced because of disclosures it made and actions it
       took after it received the LOI, its history of compliance with the
       Commission's rules, the lack of harm to the public, and the lack of
       any allegation of misrepresentation on the part of Syntax-Brillian.

   III. forfeiture order

    7. The proposed forfeiture set forth in the NAL was assessed in
       accordance with Section 503(b) of the Act and Section 1.80 of the
       Rules, and the guidelines enunciated in the Commission's Forfeiture
       Policy Statement. In assessing forfeitures, Section 503(b)(2)(E) of
       the Act requires that we 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. We have considered
       Syntax-Brillian's claims in light of the above statutory factors, and
       have determined that, with the exception of a reduction based on the
       number of receivers mistakenly described as being shipped interstate
       by Syntax-Brillian in its LOI Response and the number of receivers
       imported by Syntax-Brillian, there is no basis for reduction of the
       proposed forfeiture.

   A. The Commission Was Not Required to Issue a Citation to Syntax-Brillian
   Prior to Issuing the NAL.

    8. We reject Syntax-Brillian's assertion that the NAL is unenforceable
       because the Commission did not first issue it a citation in accordance
       with Section 503(b)(5) of the Act. Section 503(b)(5) provides that

   No forfeiture liability shall be determined under this subsection against
   any person, if such person does not hold a license, permit, certificate,
   or other authorization issued by the Commission, ... unless, prior to the
   notice required by paragraph (3) of this subsection or the notice of
   apparent liability required by paragraph (4) of this subsection, such
   person (A) is sent a citation of the violation charged; (B) is given a
   reasonable opportunity for a personal interview with an official of the
   Commission, at the field office of the Commission which is nearest to such
   person's place of residence; and (C) subsequently engages in conduct of
   the type described in such citation.

   According to Syntax-Brillian, a citation was required in this case because
   it "does not hold a license, permit, certificate, or other authorization
   issued by the Commission." We disagree. Under Part 15 of the Rules,
   television broadcast receivers are unintentional radiators and are
   required to be authorized under the verification procedure prior to the
   initiation of marketing. Verification is a form of equipment authorization
   "where the manufacturer makes measurements or takes the necessary steps to
   insure that the equipment complies with the appropriate technical
   standards." Pursuant to Section 2.909(b) of the Rules, the party
   responsible for ensuring compliance of equipment with the applicable
   standards is "[i]n the case of equipment subject to authorization under
   the verification procedure, the manufacturer or, in the case of imported
   equipment, the importer." Thus, as the manufacturer and importer of the
   television receivers in question, Syntax-Brillian was the party
   responsible for authorizing the television receivers under the
   verification procedure. Therefore, we conclude that Syntax-Brillian holds
   a Commission authorization for purposes of Section 503(b)(5).

    9. In addition, we reject Syntax-Brillian's implication that verification
       is not an "authorization" within the meaning of Section 503(b)(5). The
       verification procedures are set forth in Subpart J of the Part 2
       Rules, entitled "Equipment Authorization Procedures," and verification
       is described in the rules as an "equipment authorization." Among other
       things, the rules governing equipment subject to authorization under
       the verification procedures specify detailed technical requirements
       and measurement procedures, set forth limitations on the verification,
       require the responsible party to maintain detailed records on the
       equipment and provide copies of those records to the Commission upon
       request, require the responsible party to provide samples of the
       equipment to the Commission upon request for testing, and prescribe
       identification, labeling, and user manual requirements. Absent
       compliance with the comprehensive technical and administrative
       requirements set forth in the rules, equipment subject to verification
       is considered to be "unauthorized" and may not be marketed in the
       United States.

   10. Moreover, we note that there is no doubt that Congress intended to
       subject television equipment manufacturers to full and immediate
       forfeiture liability by virtue of the 1978 amendments. Congress
       enacted the citation procedure in Section 503(b)(5) in 1978 in
       conjunction with certain other amendments to the forfeiture provisions
       of Section 503. One of the 1978 amendments extended the forfeiture
       provisions of Section 503(b) to cover any person subject to any
       provision of the Act or the Rules. The legislative history of the 1978
       amendments makes clear that Congress intended to include
       communications equipment manufacturers within the Commission's
       forfeiture authority. Further, at the time of the 1978 amendments,
       television receivers were subject to authorization under the
       certification procedure, which is a written authorization issued by
       the Commission upon application to the Commission.

   11. Additionally, the legislative history of Section 503(b)(5) indicates
       that the citation requirement is intended as a

   special procedural protection ... for those persons who will be made
   subject to forfeiture liability for the first time and who are presumed to
   be unaware of Commission regulations .... This special citation procedure
   and interview requirement protects persons who would otherwise be subject
   to immediate forfeiture for willful violations such as altering electronic
   devices which emit electromagnetic radiation (such as garage door openers
   or electronic water heaters or electronic ovens) in violation of FCC
   rules.

   In light of Congress' clear intention to extend the Commission's
   forfeiture authority to equipment manufacturers, Congress cannot
   reasonably be understood to have intended to include equipment
   manufacturers, which had been subject to regulation by the Commission for
   more than 15 years prior to the 1978 amendments, among the class of
   individuals likely to be unaware of their obligations under the Rules and
   in need of a special procedural protection in the forfeiture context.

   12. When the Commission subsequently relaxed the equipment authorization
       rules in 1984 to permit authorization of television receivers and
       certain other devices under the verification procedure, it clearly did
       not intend to limit or reduce its future ability to take enforcement
       action. Rather, the Commission's objective was to reduce the amount of
       time needed for an applicant to obtain an equipment authorization for
       certain types of equipment that is less likely to generate harmful
       interference, while affording the Commission the flexibility to
       concentrate its resources where they are most needed. To ensure
       continued compliance of the verified equipment with applicable
       regulations, the Commission instituted an equipment sampling program
       and emphasized that it intended to use its enforcement authority under
       the Act, "especially the direct forfeiture authority contained in
       Section 503 and implemented in Section 1.80 of the Rules, to the
       greatest extent possible when noncompliance is found by our sampling
       program." Accordingly, we conclude that Syntax-Brillian, an equipment
       manufacturer that acknowledges that it was aware of the DTV tuner
       requirements, was not entitled to a citation prior to issuance of the
       NAL.

   B. Syntax-Brillian's Labeling of its Receivers as "HD-Ready" Did Not
   Satisfy the DTV Tuner Requirement.

   13. We find no merit in Syntax-Brillian's argument that it did not violate
       the DTV tuner requirement because it "complied with the law by
       disclosing the functional limitations of the receivers."
       Syntax-Brillian states that its labeling of its receivers, which had
       the capability to tune and decode digital satellite and cable signals
       with an external tuner, as "HD Ready" was "consistent with established
       industry practices and informal Commission guidance." Syntax-Brillian
       claims, in this regard, that

   [b]eginning in 2002 through May 2007, the Commission's policy was that it
   was not a violation to manufacture and market receivers that do not
   include the capability to tune over-the-air broadcast digital signals
   where the receivers are paired with digital cable or direct broadcast
   satellite service and the functional limitation is disclosed.

   In support of this claim, Syntax-Brillian quotes the following statement
   in the DTV Review Second Report and Order:

   In the Report and Order/Further Notice, we observed that digital
   television receivers, i.e. devices with integrated displays as opposed to
   set-top receiving devices that do not include displays, could be marketed
   that do not have the capability to receive over-the-air broadcast signals.
   For example, receivers intended only for use in receiving digital cable or
   direct broadcast satellite service might not include the capability to
   tune over-the-air broadcast television signals ....

   Syntax-Brillian notes that the Commission had requested comment on whether
   to "require any digital television receivers that cannot receive
   over-the-air digital signals to carry a label informing consumers of this
   limitation on the receivers' functionality" but concluded in the DTV
   Review Second Report and Order that it would not, at that time, require
   such a label. Syntax-Brillian further notes that in 2004 and again in 2005
   the Commission declined to promulgate a labeling requirement to disclose
   functional limitations, but encouraged responsible parties to clearly
   label new television receivers or employ other means to inform consumers
   whether or not specific models are able to receive over-the-air digital
   signals. Thus, according to Syntax-Brillian, at the time of its alleged
   violations the Commission had publicly acknowledged that manufacturers
   could import and ship receivers with functional limitations with a
   disclosure of the limitation. Syntax-Brillian maintains that because the
   Commission did not adopt specific labeling requirements until May 2007,
   Syntax-Brillian acted reasonably in placing an "HD-Ready" label on its
   receivers.

   14. We disagree. First, the DTV tuner requirement clearly and
       unequivocally requires all new TV broadcast receivers that are
       imported into the United States or shipped in interstate commerce to
       be capable of receiving the signals of DTV broadcast stations
       over-the-air in accordance with the schedule set forth in the
       Commission's rules. Syntax-Brillian's contention that the Commission
       had a "policy" of permitting the importation and interstate shipment
       of non-DTV-compliant television receivers provided that the receiver's
       functional limitation is disclosed is specious. Syntax-Brillian's
       interpretation would allow manufacturers to continue importing and
       shipping interstate non-DTV-compliant receivers indefinitely,
       completely undermining the clear language and objectives of the DTV
       tuner requirement. Syntax-Brillian's interpretation also is
       inconsistent with a reasonable reading of the Commission's orders. It
       is clear that, in the sentence from the DTV Review Second Report and
       Order quoted by Syntax-Brillian, the Commission was considering
       whether to adopt labeling requirements for television receivers
       without any capability to receive over-the-air broadcast signals.
       Indeed, in the sentence following the one quoted, the Commission
       stated that "while we are not aware that any such receivers are being
       marketed at this time, such devices would be permissible under our
       rules" because "[t]he all-channel reception provisions of Section
       15.117(b) of the rules, and indeed the ACRA authority underlying those
       provisions, would not apply to receivers that did not have any
       capability for receiving broadcast signals over-the-air." The
       receivers manufactured, imported and shipped interstate by
       Syntax-Brillian, by contrast, have the capability to receive broadcast
       signals over-the-air and, therefore, are required to comply with the
       DTV tuner requirement.

   15. Moreover, while the Commission did consider whether to adopt labeling
       requirements for receivers capable of receiving over-the-air broadcast
       signals in 2004 and in 2005, prior to the complete phase-in of the DTV
       tuner requirement for mid-sized receivers, the Commission did not
       adopt any labeling requirements at that time, and nothing in those
       decisions even remotely suggests that labeling or some other
       functional limitation disclosure was an acceptable substitute for
       compliance with the DTV tuner requirement. We note that the labeling
       requirement ultimately adopted by the Commission in May 2007 applies
       to the retail sale of analog-only television receivers from inventory,
       a situation not covered by our DTV tuner requirement. It cannot
       reasonably be read to allow importation and interstate shipment of
       receivers that do not comply with our DTV tuner requirement after the
       applicable deadlines. Finally, contrary to Syntax-Brillian's argument,
       the April 2006 tip sheet on "Buying a Digital Television" does not
       represent a public acknowledgment by the Commission that manufacturers
       could import and ship interstate receivers without DTV tuners with a
       disclosure of the limitation. The tip sheet provides "basic
       information about DTV to assist consumers;" it contains no information
       or guidance regarding manufacturer compliance with the DTV tuner
       requirement or Commission policy on equipment labeling.

   C. The NAL and the Proposed Forfeiture Do Not Violate the Administrative
   Procedure Act ("APA") or Syntax-Brillian's Due Process Rights.

   16. We reject Syntax-Brillian's argument that it is arbitrary and
       capricious and an abuse of discretion under the APA for the Commission
       to impose a forfeiture in this case because most of the violations
       occurred between March 1, 2006 and June 1, 2006. Syntax-Brillian notes
       that it was "substantially compliant" with the original July 1, 2006
       deadline by which responsible parties were to comply with the DTV
       tuner requirement for mid-size television receivers. Further, it
       asserts that it was arbitrary and capricious, and an abuse of
       discretion, for the Commission to accelerate the mid-size receiver
       deadline because it did not provide a reasoned basis for doing so.

   17. Syntax-Brillian's argument is effectively an untimely petition for
       reconsideration of the DTV Tuner Report and Order, and a collateral
       attack on the rule underpinning the NAL. The filing of petitions for
       reconsideration in rulemaking proceedings is governed by Section 1.429
       of the Rules, which requires a petition for reconsideration to be
       "filed within 30 days from the date of public notice of such action."
       Petitions for reconsideration of the DTV Tuner Report and Order were,
       therefore, due on August 5, 2005. The predecessor companies to
       Syntax-Brillian (Syntax Groups Corporation and Brillian Corporation)
       did not file a petition for reconsideration, though they had notice
       and opportunity to do so. Thus, Syntax-Brillian's NAL Response will be
       considered an untimely petition for reconsideration of the DTV Tuner
       Report and Order that must be denied. Moreover, the Commission has
       previously decided that indirect challenges to Commission decisions
       adopted in proceedings in which the right to review has expired, such
       as the instant one, are considered impermissible collateral attacks
       and are properly denied.

   18. In addition to rejecting Syntax-Brillian's claim that accelerating the
       mid-size receiver deadline violates the APA on procedural grounds, we
       disagree with the substance of its argument that we did not provide a
       reasoned justification in the DTV Tuner Report and Order for
       accelerating the 100 percent compliance date for mid-size receivers.
       Our June 2005 decision to accelerate the compliance deadline for
       mid-size DTV receivers was reached following a rulemaking proceeding
       initiated by a Petition for Rulemaking submitted by the Consumer
       Electronics Association and the Consumer Electronics Retailers
       Association ("CEA-CERC"). Key to our decision was that manufacturers
       commenting in that proceeding indicated they supported accelerating
       the date by which 100 percent of mid-size television receivers would
       be required to include a DTV tuner from July 1, 2006 to March 1, 2006
       and could equip 100 percent of new mid-size television receivers with
       DTV tuners by March 1, 2006. Based on the record developed in the
       rulemaking, we determined that the general population of television
       manufacturers would be able to meet the new deadline. Syntax-Brillian
       has given us no persuasive reason to revisit that determination.

   19. Syntax-Brillian also argues that the NAL violates its Fifth Amendment
       due process rights because it  proposes a forfeiture "without having
       previously articulated a coherent legal standard permitting
       Syntax-Brillian to measure the efficacy of its labeling disclosure
       which the NAL rejects as inadequate." As discussed above, however, the
       standard Syntax-Brillian was required to follow is contained in
       Section 15.117 of our Rules and is clearly articulated.
       Syntax-Brillian failed to follow this standard. Accordingly, we reject
       Syntax-Brillian's due process argument.

   D. The Tiered, Per-Unit Formula Used to Calculate the Proposed Forfeiture
   Does Not Violate the APA or Due Process.

   20. We find, contrary to Syntax-Brillian's argument, that the tiered,
       per-unit formula articulated in the NAL does not substantively amend
       the DTV tuner regulations without notice and comment and, therefore,
       does not violate the APA. Syntax-Brillian maintains that the
       Commission had numerous opportunities in the DTV rulemaking proceeding
       to issue public notice and request comment on the method of
       calculating sanctions proposed in the NAL and that "it knew full well
       ... that the violations are not contemplated in the Forfeiture Policy
       Statement."

   21. The APA does not mandate that the Commission issue notice and request
       comment each time it proposes a forfeiture or a forfeiture approach
       for rule violations not specifically contemplated at the time the
       Forfeiture Policy Statement was adopted. The forfeiture guidelines set
       forth in the Forfeiture Policy Statement are intended to provide a
       degree of predictability and uniformity to the forfeiture process.
       Nevertheless, the Commission retains its discretion to assess
       forfeitures on an individual, case-by-case basis under its general
       forfeiture authority in Section 503 of the Act. As noted in the NAL,
       Section 503 authorizes us to assess forfeitures to entities such as
       Syntax-Brillian of up to $11,000 for each violation, or each day of a
       continuing violation, up to a statutory maximum of $97,500 for a
       single act or failure to act. Pursuant to Section 503(b), weighing the
       factors set forth in the statute, the Commission may determine the
       appropriate forfeiture within the range permitted by the statute.
       Thus, Syntax-Brillian had full notice under the APA that the maximum
       potential forfeiture for each violation - that is, each unit shipped
       or imported in violation of the DTV tuner requirement - could be the
       statutory maximum.

   22. We also reject Syntax-Brillian's assertion that our decision to adopt
       a tiered, per-unit formula for calculating forfeitures for violations
       of the DTV tuner requirement arbitrarily and capriciously rejects a
       per model approach without adequate justification. Syntax-Brillian
       claims that the only factor cited by the Commission to support a
       finding that the violation was egregious is the assertion that the
       company imported and shipped interstate a large number of
       non-compliant television receivers, and points out that the quantity
       of violations was miscalculated. We disagree. As we stated in the NAL,
       we consider violations of the DTV tuner requirement to be more
       egregious, in general, than other types of equipment marketing cases
       because this requirement promotes an important public policy goal of
       helping to facilitate the transition to digital television. Without a
       digital-to-analog converter box, consumers using analog devices like
       those imported and shipped by Syntax-Brillian will be unable to
       receive most broadcast television signals after February 17, 2009.
       Thus, our assessment that the seriousness of DTV tuner requirement
       violations warrants a per-unit approach does not rest on the number of
       units imported or shipped interstate by any one responsible party in
       violation of the DTV tuner requirement, but, rather, on the conclusion
       that calculating proposed forfeitures on a per model basis would
       result in forfeiture amounts that are not commensurate with the
       seriousness of the violation and may not effectively deter future
       violations. We further concluded that, to reflect the increasing
       seriousness of the violation as the number of non-compliant units
       shipped or imported rises, we would apply an increased per-unit
       forfeiture as the total number of violations increases and crosses
       certain thresholds or tiers.

   23. Syntax-Brillian also asserts that the tiered, per-unit forfeiture
       scheme is excessive, unlawfully duplicative, and an abuse of our
       discretion because it considers importing and interstate shipping of a
       single receiver as separate violations. Specifically, Syntax-Brillian
       argues that the NAL proposes forfeitures "for multiple . . .
       individual equipment violation[s] without explanation" that are
       "unprecedented" and "an abuse of discretion." Section 15.117 clearly
       imposes two distinct prohibitions on responsible parties: it prohibits
       either importing or shipping interstate television receivers that do
       not contain digital tuners. We find, however, that treating the
       importation and subsequent interstate shipment of the same television
       receiver as two separate violations is unnecessary. Given that the DTV
       tuner rule is meant to ensure that all television receiving devices
       are equipped with a digital tuner, we conclude that the purpose of the
       rule will best be served by treating the importation and subsequent
       interstate shipment of the same receiver as a single violation. In
       future forfeiture actions taken for violations of the DTV tuner
       requirement, we will assess the facts of each case in determining how
       best to enforce the requirements of Section 15.117 using this
       interpretation. Because we cannot determine how many of the units
       imported by Syntax-Brillian were not subsequently shipped interstate,
       we will not impose a forfeiture against Syntax-Brillian for the 3,466
       non-DTV-compliant receivers it imported.

   24. We find no merit, however, in Syntax-Brillian's argument that the NAL
       is predicated on the Commission's unwarranted rejection of the
       statutory maximum and is devoid of any explanation as to why the
       statutory maximum would not encourage compliance. As stated in the
       NAL, Section 503 authorizes us to assess forfeitures against entities
       such as Syntax-Brillian of up to $11,000 for each violation, or each
       day of a continuing violation, up to a statutory maximum of $97,500
       for a single act or failure to act. Each separate interstate shipment
       of a non-DTV-compliant receiver by Syntax-Brillian constituted a
       separate violation subject to the statutory maximum forfeiture.
       Because the per-unit forfeiture amounts proposed against
       Syntax-Brillian did not exceed $175 per unit, this conclusion stands
       whether that relevant maximum forfeiture amount is $11,000 or $97,500.
       Thus, the tiered, per-unit approach established in the NAL results in
       a forfeiture amount that is actually significantly lower than the
       maximum potential forfeiture.

   25. Further, we find unpersuasive Syntax-Brillian's argument that the
       per-unit forfeiture approach is excessive relative to the forfeitures
       proposed by the Commission for "substantially more egregious" DTV
       labeling violations. In support of this argument, Syntax-Brillian
       notes that in the recent DTV labeling NALs, the Commission proposed an
       $8,000 base forfeiture amount per unlabeled model or device. We
       disagree with Syntax-Brillian that DTV labeling violations are more
       egregious than DTV tuner violations. The failure of a manufacturer to
       comply with the DTV tuner requirement, which has been in place in some
       form for more than five years and is intended to limit the
       availability of analog-only television receivers, is substantially
       more egregious than the failure of a retailer to comply with the DTV
       labeling requirements, which permit the sale of analog-only receivers,
       as long as consumers are fully informed about the limitations of those
       devices. Although the DTV tuner requirement and the DTV labeling
       requirement both address the issue of consumer harm, we consider
       violations of the DTV tuner requirement to be more egregious because
       that requirement is fundamental to a successful DTV transition: it
       prevents non-compliant, analog-only television receivers from entering
       the stream of commerce in the first place. By contrast, the DTV
       labeling requirement is primarily informational in nature. It
       mitigates the harm resulting from the sale of analog-only television
       receivers from pre-March 1, 2007 inventory, which will eventually be
       exhausted, by requiring retailers to disclose the limitations of the
       devices to consumers at the point of sale.

   26. Finally, we disagree with Syntax-Brillian's assertion that "the
       per-unit policy injects uncertainty into the forfeiture process in a
       manner completely at odds with the Commission's stated objectives." As
       discussed above, the guidelines set forth in the Forfeiture Policy
       Statement were intended to provide a degree of predictability and
       uniformity to the forfeiture process, but the Commission has
       substantial discretion in proposing forfeitures. Furthermore, the
       per-unit forfeiture methodology will provide consistency and
       predictability in any future cases involving violations of the DTV
       tuner requirements.

   E. The Proposed Forfeiture Is Not Inconsistent with Commission Precedent.

   27. We reject Syntax-Brillian's argument that the proposed forfeiture
       departs from prior Commission cases imposing large forfeitures based
       on conduct deemed to be egregious. In particular, Syntax-Brillian
       cites our recent decision in Behringer. Syntax-Brillian asserts that
       Behringer's conduct was far more egregious given the quantity of
       affected models and units in Behringer and the fact that Behringer
       continued to violate the rules after the investigation had begun,
       which resulted in a forfeiture of $1,000,000, approximately one-third
       of the amount proposed against Syntax-Brillian. Syntax-Brillian also
       cites several slamming and other cases involving "deceptive business
       practices," asserting that the forfeiture proposed here is vastly more
       substantial than any assessed against companies which actively
       deceived consumers after the Commission specifically warned them not
       to do so.

   28. While we acknowledge that Behringer involved a significant volume of
       unauthorized models and units, we note that all but two of the models
       at issue in Behringer were ultimately found to comply with applicable
       technical standards. In contrast, the devices manufactured, imported
       and shipped interstate by Syntax-Brillian do not comply with the DTV
       tuner requirement. Thus, the harm to consumers resulting from
       Syntax-Brillian's non-compliance makes this case substantially more
       egregious than Behringer. Furthermore, contrary to Syntax-Brillian's
       suggestion, we are not required to issue prior warnings or find that
       it deceived consumers in order to find that its violations were
       egregious. We concluded in the NAL that the DTV tuner requirement
       promotes the important public policy goal of facilitating the
       transition to digital television and that violations of this
       requirement therefore are egregious. Syntax-Brillian has given us no
       persuasive reason to revisit that finding. Although Syntax-Brillian,
       unlike the manufacturer in Behringer and other cases that
       Syntax-Brillian cites, may not have actively deceived consumers after
       a specific Commission warning, Section 503(b)(2)(E) of the Act
       requires that we take into account multiple factors in assessing
       forfeitures, and we cannot conclude based on consideration of a single
       factor that the sanction here is inconsistent with Commission
       precedent.

   29. We also reject Syntax-Brillian's assertion that the per-unit
       forfeiture scheme articulated in the NAL violates the Excessive Fines
       Clause of the Eighth Amendment because it is "indefinite, unlimited
       and grossly disproportionate" to the DTV violation cited in the NAL.
       In support of this argument, Syntax-Brillian cites United States v.
       Bajakajian, where the government sought the forfeiture of the entire
       amount of currency ($357,144) possessed by a defendant who violated a
       statute requiring that the export of more than $10,000 outside the
       United States be reported. Noting that the defendant's crime was
       solely a reporting offense, that the violation was unrelated to any
       other illegal activities, and that the harm caused by the reporting
       failure was minimal, the Court concluded that forfeiture of the entire
       amount of the exported currency would be grossly disproportionate to
       the gravity of the reporting failure. The instant case, by contrast,
       involves a violation of the substantive requirement to include a DTV
       tuner in receivers imported and shipped interstate. Given that this
       requirement is critical to the successful transition to digital
       television and the harm to consumers that results from non-compliance,
       we do not believe that the per-unit forfeiture approach results in a
       forfeiture amount that is grossly disproportionate to the gravity of
       the violation. Nor does the per-unit forfeiture methodology produce an
       indefinite or unlimited forfeiture. Rather, as discussed above, the
       forfeiture amount is limited by the statutory maximum set forth in
       Section 503(b)(2)(D) of the Act.

   F. New Information Provided by Syntax-Brillian Warrants Adjustment of the
   Forfeiture Amount.

   30. We agree that, in some aspects, the NAL overstates the number of units
       imported and shipped interstate in violation of the DTV tuner
       requirement. Specifically, Syntax-Brillian believes that the number of
       non-compliant units shipped interstate should be reduced from 14,894
       units to 4,282 to reflect the following: 1) use of the correct Tolling
       Date of April 30 rather than April 27 requires the elimination of 156
       non-compliant units shipped interstate; 2) 3,370 of the number of
       units cited in the NAL were intrastate rather than interstate
       shipments; and 3) 7,086 of the non-compliant units shipped interstate
       should be eliminated from the number of units used to calculate the
       forfeiture because the Tolling Agreement was breached and is therefore
       unenforceable. Additionally, Syntax-Brillian states that the number of
       units imported is 3,466, not 7,175 as stated in the NAL, and that
       number should be reduced by 3,102 to reflect the unenforceability of
       the Tolling Agreement.

   31. As a threshold matter, the number of non-compliant units within the
       Statute of Limitations was predicated on use of an April 30 tolling
       date, not April 27 as maintained by Syntax-Brillian. Therefore, there
       is no need to reduce the number of non-compliant units shipped
       interstate by the 156 units cited by Syntax-Brillian. As to the second
       point regarding intrastate shipments, the forfeiture proposed in the
       NAL was based on the information submitted by Syntax-Brillian in its
       LOI Response, which characterized all of the shipments as interstate.
       Based on Syntax-Brillian's new representations in its NAL Response
       that 3,370 of the units that the company originally characterized as
       interstate shipments are actually intrastate shipments, we find it
       appropriate to reduce the number of units shipped interstate by that
       amount.

   32. Syntax-Brillian also disagrees with the number of receivers identified
       in the NAL, 7,175, as having been imported within the statute of
       limitations. It believes that the number is actually 3,466. After
       further reviewing Syntax-Brillian's LOI Response, and based on new
       information provided by Syntax-Brillian in its NAL Response which
       shows that 1,390 units listed in the LOI Response as imports were not
       actually imported into the United States, we concur with
       Syntax-Brillian that the number of units imported within the statute
       of limitations in violation of the DTV tuner requirement is 3,466.
       However, for the reasons noted above, we will not impose a forfeiture
       against Syntax-Brillian for this violation.

   33. Syntax-Brillian's arguments concerning the Tolling Agreement lack
       merit. On April 30, 2007, after Syntax-Brillian raised the possibility
       of settlement, the Commission executed a Tolling Agreement with it.
       Syntax-Brillian's argument is, essentially, that the Commission
       breached the April 30, 2007 Tolling Agreement by issuing the NAL
       rather than entering into a consent decree with it. However, a Tolling
       Agreement is not a bilateral contract between the Commission and a
       party that obligates the Commission to enter into a Consent Order.
       Instead, a Tolling Agreement is simply a tool used to facilitate
       consent decree negotiations by extending the amount of time available
       for the Commission and the signatory party to conduct negotiations.
       The Tolling Agreement explicitly states that "[t]he Commission has
       made no promises, representations, or inducements of any kind to
       Syntax-Brillian in connection with this Tolling Agreement."
       Furthermore, the Tolling Agreement provides that "Syntax-Brillian
       further understands and agrees that it shall not rely on the Tolled
       Period in any administrative or judicial proceeding in which it may
       argue that the issuance of a notice of apparent liability for
       forfeiture or such other proposed action or action by the Commission
       or its delegated authority arising from the investigation ... is
       barred by the statute of limitations." Thus, Syntax-Brillian has no
       basis for arguing either that the Commission breached the Tolling
       Agreement or that expiration of the limitations period bars the
       Commission from sanctioning it for actions that occurred during the
       Tolled Period. We also note that Syntax-Brillian's argument that the
       staff misled or deceived it lacks merit: the Commission's course of
       action was largely due to Syntax-Brillian's inaction. Five weeks after
       meeting with Commission staff, Syntax-Brillian had neither responded
       to a request from staff for information concerning additional
       non-DTV-compliant receivers that it imported into the United States
       nor presented any consent decree proposal. Accordingly, the Commission
       issued the NAL. For all of these reasons, we decline to reduce the
       number of DTV receivers shipped interstate by 7,086 as requested by
       Syntax-Brillian on the ground of the Tolling Agreement's alleged
       unenforceability.

   34. After removing the 3,370 DTV receivers now found to have been shipped
       intrastate rather than interstate as reported in Syntax-Brillian's LOI
       Response and the 3,466 DTV receivers Syntax-Brillian imported into the
       United States, the total number of units upon which we base the
       forfeiture issued today is 11,524 (14,894-3,370 shipped interstate).
       Applying the forfeiture calculation methodology outlined in the NAL
       results in a forfeiture of $1,266,100.

   G. Syntax-Brillian Has Presented No Mitigating Factors Warranting Further
   Reduction of the Proposed Forfeiture.

   35. As discussed below, we find that Syntax-Brillian's additional
       arguments do not warrant any further reduction of the proposed
       forfeiture. Specifically, Syntax-Brillian states that the forfeiture
       should be reduced because it has no history of violations of either
       the DTV tuner requirement or any other Rule, the period of
       non-compliance was brief and ceased before the NAL was issued, it
       discontinued importation and interstate shipment of non-compliant
       models prior to the issuance of the NAL, it made good faith
       disclosures after the NAL was issued, it implemented corrective
       measures, and discontinued all the models cited in the NAL before the
       Commission initiated its investigation. Further, Syntax-Brillian
       states that there have been no allegations of misrepresentation by it,
       that there has been no harm to the public, the majority of its
       violations occurred between March 1, 2006 and July 1, 2006, and that,
       as a small business, it was unable to meet the accelerated deadline of
       March 1, 2006 for mid-size DTV receivers.

   36. Syntax-Brillian states, correctly, that a party's prior history of
       compliance with our Rules is one factor that is used when determining
       a forfeiture amount. However, forfeitures are not automatically
       increased or decreased on a factor-by-factor basis. Instead, we
       consider the record of an investigation as a whole and the particular
       facts of a case. As long as there is a rational relationship between
       the factors used in arriving at a forfeiture and the level of the
       forfeiture, we may decline to assign any weight to a particular factor
       in a given case. In this case, because the DTV tuner requirement has
       been found to be central to the successful transition from analog to
       digital television, we found that violations of the DTV tuner
       requirement were more egregious than violations of other equipment
       marketing rules. For this reason, we established the per-unit
       forfeiture guideline and articulated it in the NAL. Our goal was to
       keep non-compliant television receivers out of the stream of commerce.
       Given the egregious nature of Syntax-Brillian's violations and the
       importance of the DTV tuner requirement, we cannot conclude that
       Syntax-Brillian's prior history of compliance warrants any reduction
       in forfeiture because to do so would result in a forfeiture that is
       not commensurate with the gravity of its offense. Therefore, we will
       not reduce the proposed forfeiture because of Syntax-Brillian's prior
       history of compliance.

   37. Additionally, we decline to consider Syntax-Brillian's actions as
       mitigating the proposed forfeiture because it implemented corrective
       measures, made its disclosures, and ceased importing and shipping
       non-DTV compliant television receiver models only after the Commission
       initiated an investigation of non-compliant DTV receivers that were
       imported by Syntax-Brillian. Such corrective actions taken after the
       Commission initiates an investigation, while laudable and important,
       are not a mitigating factor warranting reduction of a forfeiture.

   38. Syntax-Brillian also asserts that the forfeiture should be reduced
       because no allegation of misrepresentation has been made against it.
       Misrepresentation is considered a separate violation that is typically
       assessed at the statutory maximum for the service provided by the
       violator. It is not one of the statutory factors used to increase or
       decrease forfeitures and we, therefore, decline to consider this as a
       factor in mitigation of the forfeiture.

   39. We also reject Syntax-Brillian's public harm argument. Syntax-Brillian
       is correct that, under normal circumstances, the majority of end users
       of DTV receivers will not be affected by the DTV transition because
       they receive video programming via cable or satellite. Nevertheless,
       as discussed above, we believe that the importation and interstate
       shipment of non-DTV-compliant receivers after the applicable deadlines
       does result in harm to consumers. As we stated in the Second Periodic
       DTV Review 2007, consumers expect that television equipment purchased
       today has the capability to receive over-the-air broadcast now and
       will continue to have that capability even after the completion of the
       DTV transition. Continued importation and interstate shipment of
       non-DTV-compliant television receivers causes consumer disruption and
       confusion inconsistent with a smooth transition to digital
       broadcasting, misleads consumers who may be unaware of the transition
       to digital broadcast, may lead to loss of service, and could impede
       the dissemination of emergency information in case of disaster.
       Therefore, we will not reduce the proposed forfeiture as
       Syntax-Brillian requests.

   40. Finally, Syntax-Brillian states that, as a small business formed
       shortly before the March 1, 2006 deadline, it was unable to meet the
       revised deadline for mid-size DTV receivers and that most of its
       violations occurred between March 1, 2006 and July 1, 2006. However,
       Syntax-Brillian represents the merger of two companies, both of which
       were involved with manufacturing and distributing television receiving
       equipment prior to the merger. Both companies, therefore, had notice
       of both the original and modified deadlines for compliance with the
       DTV tuner requirement. Furthermore, as previously discussed, our June
       2005 decision to accelerate the compliance deadline for mid-size DTV
       receivers was based on our determination in a rulemaking proceeding
       that the general population of television manufacturers would be able
       to meet the new deadline. Syntax-Brillian's assertion of its status as
       a small business is insufficient for us to conclude that they are not
       properly included in that general population of television
       manufacturers. In this regard, Syntax-Brillian has not specifically
       explained why such status prevented its compliance, and, as discussed
       above, neither Syntax-Brillian nor its predecessors raised any
       concerns about compliance with the Commission in a timely manner.

   41. In accelerating the 100 percent compliance date, we also determined
       that maintaining the requirement that 50 percent of mid-size
       television receivers be equipped with DTV tuners by July 1, 2005,
       rather than eliminating that benchmark completely, would best serve
       our goal of advancing the DTV transition by stemming the flow of
       analog-only television receivers as quickly as possible. Thus,
       Syntax-Brillian should already have been preparing to meet the 50
       percent compliance date, which occurred only three weeks after release
       of the DTV Tuner Report and Order, when it received notice of the
       acceleration of the 100 percent compliance date. While it is factually
       correct, then, that it was "substantially in compliance" with the
       original 100 percent compliance date of July 1, 2006 and most of its
       violations occurred between March 1, 2006 and July 1, 2006,
       Syntax-Brillian has not persuaded us that accelerating the deadline
       placed an undue burden on it that justifies reducing the proposed
       forfeiture. Therefore, we affirm our finding in the NAL that
       Syntax-Brillian's status as a small business is not a factor in
       mitigation of the forfeiture amount.

   IV. notice of apparent liability for forfeiture

   A. Syntax-Brillian Violated Section 1.17(a)(2) of the Rules.

   42. Section 1.17(a)(2) of the Rules provides that no person may provide,
       in any written statement of fact, "material factual information that
       is incorrect or omit material information that is necessary to prevent
       any material factual statement that is made from being incorrect or
       misleading without a reasonable basis for believing that any such
       material factual statement is correct and not misleading." Any person
       who has received a letter of inquiry from the Commission or its staff
       or is otherwise the subject of a Commission investigation is subject
       to this rule. In expanding the scope of Section 1.17 in 2003 to
       include written statements that are made without a reasonable basis
       for believing the statement is correct and not misleading, the
       Commission explained that this requirement was intended to more
       clearly articulate the obligations of persons dealing with the
       Commission, ensure that they exercised due diligence in preparing
       written submissions, and enhance the effectiveness of the Commission's
       enforcement efforts.  Thus, even absent an intent to deceive, a false
       statement may constitute an actionable violation of Section 1.17 of
       the Rules if provided without a reasonable basis for believing that
       the material factual information it contains is correct and not
       misleading.

   43. As noted above, Syntax-Brillian acknowledged in its NAL Response that
       both the import and interstate shipment data in the LOI Response were
       incorrect. Specifically, with respect to 1,390 non-DTV-compliant
       receivers that it had listed as imports in its LOI Response,
       Syntax-Brillian provided documentation with its NAL Response
       indicating that these receivers were not imported into the United
       States, but rather were shipped to Hong Kong. In addition, in response
       to questions in the LOI requesting the number of non-DTV-compliant
       receivers shipped interstate, Syntax-Brillian stated in its LOI
       Response that the total number of receivers "shipped interstate ... is
       identified in Exhibit 2" and "See Exhibit 3." Nowhere in the LOI
       Response did Syntax-Brillian state that these Exhibits also included
       intrastate shipments. In its NAL Response, however, Syntax-Brillian
       for the first time identified certain of these shipments as
       intrastate, rather than interstate.

   44. As we have stated, parties must "use due diligence in providing
       information that is correct and not misleading to the Commission,
       including taking appropriate affirmative steps to determine the
       truthfulness of what is being submitted. A failure to exercise such
       reasonable diligence would mean that the party did not have a
       reasonable basis for believing in the truthfulness of the
       information." Syntax-Brillian has not articulated a reasonable basis
       for its belief that the import and interstate shipment data in its LOI
       Response were correct, nor has it provided any reason for its
       provision of incorrect or misleading information. We think that, had
       it exercised even a minimum of diligence prior to the submission of
       its LOI Response, Syntax-Brillian would not have submitted incorrect
       or misleading material factual information. We conclude, therefore,
       that Syntax-Brillian lacked a reasonable basis for its belief that its
       LOI Response was correct and not misleading in apparent violation of
       Section 1.17(a)(2) of the Rules.

   B. Proposed Forfeiture

   45. Under Section 503(b)(1)(B) of the Act, any person who is determined by
       the Commission to have willfully or repeatedly failed to comply with
       any provision of the Act or any rule, regulation, or order issued by
       the Commission shall be liable to the United States for a forfeiture
       penalty. To impose such a forfeiture penalty, the Commission must
       issue a notice of apparent liability and the person against whom such
       notice has been issued must have an opportunity to show, in writing,
       why no such forfeiture penalty should be imposed. The Commission will
       then issue a forfeiture if it finds by a preponderance of the evidence
       that the person has violated the Act or a Commission rule. We conclude
       under this standard that Syntax-Brillian has apparently willfully
       violated Section 1.17(a)(2) of the Rules by providing incorrect or
       misleading material factual information to Commission staff without a
       reasonable basis for believing the information was correct and not
       misleading during the course of staff's investigation of
       Syntax-Brillian's violations of the DTV tuner requirement.

   46. Pursuant to the Commission's Forfeiture Policy Statement and Section
       1.80(b)(4) of the Rules, the base forfeiture amount for
       misrepresentation or lack of candor is the statutory maximum, or, in
       this case, $11,000. In determining the appropriate forfeiture amount,
       we may adjust the base amount upward or downward by considering the
       factors enumerated in Section 503(b)(2)(E) of the Act, including "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." Considering all of the enumerated factors and the particular
       circumstances of this case, we find that the maximum permitted
       forfeiture of $11,000 is warranted here for Syntax-Brillian's apparent
       willful violation of Section 1.17(a)(2). The Commission has stated
       that "[we rely] heavily on the truthfulness and accuracy of the
       information provided to us. If information submitted to us is
       incorrect, we cannot properly carry out our statutory
       responsibilities." Syntax-Brillian's failure to exercise due diligence
       to ensure that the information provided in its LOI Response was
       correct and not misleading hampered our ability to properly carry out
       our statutory responsibilities and consumed scarce Commission
       resources. Accordingly, we conclude that Syntax-Brillian is apparently
       liable for an $11,000 forfeiture.

   V. conclusion

   47. We have examined Syntax-Brillian's NAL Response pursuant to the
       statutory factors prescribed by Section 503(b)(2)(E) of the Act and in
       conjunction with the Forfeiture Policy Statement. As a result of our
       review, we conclude that Syntax-Brillian willfully and repeatedly
       violated Sections 15.117(i)(1)(i) and (ii) of the Commission's Rules,
       by importing into the United States and shipping interstate DTV
       receivers that do not comply with the DTV tuner requirement. We also
       find that Syntax-Brillian is not entitled to any reduction of the
       forfeiture amount proposed in the NAL, except as discussed above with
       respect to those units found to have been shipped intrastate rather
       than interstate and those units imported into the United States.
       Further, we find Syntax-Brillian apparently liable for willful
       violation of Section 1.17(a)(2) for providing incorrect or misleading
       material factual information without a reasonable basis for believing
       the information was correct and not misleading. We propose a
       forfeiture of $11,000 for this violation.

   VI. ordering clauses

   48. Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the
       Act, and Section 1.80 of the Rules, Syntax-Brillian Corporation, IS
       LIABLE FOR A MONETARY FORFEITURE in the amount of one million, two
       hundred sixty six thousand, one hundred dollars ($1,266,100) for
       willfully and repeatedly violating Sections 15.117(i)(1)(i) and (ii)
       of the Rules.

   49. Payment of the forfeiture shall be made in the manner provided for in
       Section 1.80 of the Rules within 30 days of the release of this Order.
       If the forfeiture is not paid within the period specified, the case
       may be referred to the Department of Justice for collection pursuant
       to Section 504(a) of the Act. Payment of the forfeiture must be made
       by check or similar instrument, payable to the order of the Federal
       Communications Commission. The payment must include the NAL/Acct. No.
       and FRN No. referenced above. Payment by check or money order may be
       mailed to the Federal Communications Commission, P.O. Box 358340,
       Pittsburgh, PA 15251-8340. Payment by overnight mail may be sent to
       Mellon Bank/LB 358340, 500 Ross Street, Room 1540670, Pittsburgh, PA
       15251. Payment by wire transfer may be made to ABA Number 043000261,
       receiving bank Mellon Bank, and account number 911-6106. A request for
       full payment under an installment plan should be sent to: Associate
       Managing Director - Financial Operations, 445 12th Street, SW, Room
       1-A625, Washington, D.C. 20554.

   50. IT IS FURTHER ORDERED that, pursuant to Section 503(b) of the Act, and
       Section 1.80 of the Rules, Syntax-Brillian Corporation, IS hereby
       NOTIFIED of its APPARENT LIABILITY FOR A FORFEITURE in the amount of
       eleven thousand dollars ($11,000) for its apparent willful violation
       of Section 1.17(a)(2) of the Rules.

   51. IT IS FURTHER ORDERED that, pursuant to Section 1.80 of the Rules,
       within thirty days of the release date of this Further Notice of
       Apparent Liability for Forfeiture, Syntax-Brillian Corporation SHALL
       PAY the full amount of the proposed forfeiture or SHALL FILE a written
       statement seeking reduction or cancellation of the proposed
       forfeiture.

   52. Payment of the forfeiture must be made by check or similar instrument,
       payable to the order of the Federal Communications Commission. The
       payment must include the NAL/Account Number and FRN Number referenced
       above. Payment by check or money order may be mailed to Federal
       Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000.
       Payment by overnight mail may be sent to U.S. Bank - Government
       Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO
       63101. Payment by wire transfer may be made to ABA Number 021030004,
       receiving bank TREAS/NYC, and account number 27000001. For payment by
       credit card, an FCC Form 159 (Remittance Advice) must be submitted.
       When completing the FCC Form 159, enter the NAL/Account number in
       block number 23A (call sign/other ID), and enter the letters "FORF" in
       block number 24A (payment type code). Requests for full payment under
       an installment plan should be sent to: Chief Financial Officer --
       Financial Operations, 445 12th Street, S.W., Room 1-A625, Washington,
       D.C.  20554. Please contact the Financial Operations Group Help Desk
       at 1-877-480-3201 or Email: ARINQUIRIES@fcc.gov with any questions
       regarding payment procedures.

   53. The response to the forfeiture proposed for Syntax-Brillian's apparent
       violation of Section 1.17(a)(2) of the Rules, 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.

   54. The Commission will not consider reducing or canceling a forfeiture in
       response to a claim of inability to pay unless the petitioner submits:
       (1) federal tax returns for the most recent three-year period; (2)
       financial statements prepared according to generally accepted
       accounting practices; 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.

   55. IT IS FURTHER ORDERED that a copy of this Order shall be sent by First
       Class Mail and Certified Mail Return Receipt Requested to Mr. Vincent
       F. Sollitto, Chairman and CEO, Syntax-Brillian Corporation, 1600 N.
       Desert Drive, Tempe, AZ, 85281 and Andrew M. Beato, Esq., Stein,
       Mitchell & Mezines, L.L.P., 1100 Connecticut Avenue, N.W., Washington,
       D.C. 20036.

   FEDERAL COMMUNICATIONS COMMISSION

   Marlene H. Dortch

   Secretary

   47 C.F.R. S:S: 15.117(i)(1)(i) and 15.117(i)(1)(ii).

   47 C.F.R. S: 1.17(a)(2).

   Review of the Commission's Rules and Policies Affecting the Conversion to
   Digital Television, Second Report and Order and Second Memorandum Opinion
   and Order, 17 FCC Rcd 15978, 15996 P: 40 (2002) ("DTV Review Second Report
   and Order").

   DTV reception capability involves more circuitry than just a tuner. To
   provide this capability requires a tuner to receive the digital signal, an
   MPEG decoder/formatter, and associated processing capability and memory.
   See Requirements for Digital Television Receiving Capability, Report and
   Order and Further Notice of Proposed Rulemaking, 20 FCC Rcd 11196, 11196
   P: 1 n. 2 (2005) ("DTV Tuner Report and Order").

   DTV Review Second Report and Order, 17 FCC Rcd at 15996 P: 40. The DTV
   tuner requirement also applies to other devices such as television
   interface devices that do not include a viewing screen, e.g., devices such
   as VCRs and DVD players that are intended to provide audio-video signals
   to a video monitor and that have an antenna or antenna terminals that can
   be used for off-the-air television reception. See 47 C.F.R. S:
   15.117(i)(1)(i).

   Id. at 15979. In this latter regard, the DTV tuner requirement ensures
   that the intent of the All Channel Receiver Act of 1962 ("ACRA"), P.L. No.
   87-529, 76 Stat. 150, is fulfilled. The ACRA, which is codified at 47
   U.S.C. S: 303(s), states that the Commission shall "[h]ave authority to
   require that apparatus designed to receive television pictures broadcast
   simultaneously with sound be capable of adequately receiving all
   frequencies allocated by the Commission to television broadcasting." See
   DTV Review Second Report and Order, 17 FCC Rcd at 15589 P: 24 n. 44.

   Id. at 15996 P: 40.

   Id. at 15996-97 P: 41.

   In June 2005, the Commission modified the rules to advance the date on
   which 100% of new television receivers with screen sizes 25-36" that are
   imported or shipped interstate must include DTV tuners from July 1, 2006
   to March 1, 2006. DTV Tuner Report and Order, 20 FCC Rcd at 11203 P: 16.
   Subsequently, in November 2005, the Commission modified the rules to
   advance the date on which 100% of new television receivers with screen
   sizes 13-24" and certain other television receiving devices such as VCRs
   and digital video recorders that are imported or shipped interstate must
   include DTV tuners from July 1, 2007 to March 1, 2007. See Requirements
   for Digital Television Receiving Capability, Second Report and Order, 20
   FCC Rcd 18607, 18614 P: 19 (2005) ("DTV Tuner Second Report and Order").
   The Commission also amended the rules to apply the DTV tuner requirement
   to new receivers with screen sizes smaller than 13" on this same schedule.
   Id. at 18616 P: 25.

   The DTV tuner requirement applies to "responsible parties," as defined in
   Section 2.909 of the Rules. 47 C.F.R. S: 2.909. Under Section 2.909, the
   party responsible for equipment such as television receivers that is
   subject to our "verification" equipment authorization procedure is the
   manufacturer or, in the case of imported equipment, the importer. If
   subsequent to manufacture and importation, the equipment is modified by
   any party not working under the authority of the responsible party, the
   party performing the modification becomes the new responsible party.

   No radio frequency device may be imported into the Customs territory of
   the United States unless the importer or ultimate consignee declares that
   the device meets one of the conditions for entry specified in Section
   2.1204 of the Rules, 47 C.F.R. S: 2.1204. See 47 C.F.R. S: 2.1203. Such
   import declarations are filed with the U.S. Customs and Border Patrol on
   FCC Form 740, or electronically where electronic filing is available. 47
   C.F.R. S: 2.1205. The Enforcement Bureau, in turn, receives this
   importation data from Customs and uses it to monitor compliance with the
   DTV tuner requirements and other requirements applicable to radio
   frequency devices.

   See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   Enforcement Bureau to Vincent F. Sollitto, Jr., Chairman and CEO,
   Syntax-Brillian U.S.A., Inc. (March 8, 2007) ("LOI").

   See Letter from Andrew M. Beato, Esq. Counsel for Syntax-Brillian U.S.A.,
   Inc. to Kathryn Berthot, Spectrum Enforcement Division, Enforcement Bureau
   (March 19, 2007) ("LOI Response").

   See Syntax-Brillian Corporation, Notice of Apparent Liability for
   Forfeiture, 22 FCC Rcd 10530 (2007) ("NAL").

   See Reply in Opposition to Notice of Apparent Liability for Forfeiture
   (October 31, 2007) ("NAL Response").

   "HDTV-ready" or "HD-ready" generally refers to television monitors or
   receivers that can display HDTV programming when attached to a separate
   HDTV tuner, HD cable set-top box or HD satellite set-top-box receiver.

   Syntax-Brillian also asserts that the DTV tuner requirement is beyond the
   scope of the Commission's authority. NAL Response at 7, n. 3. Since
   Syntax-Brillian makes no argument on this point beyond this assertion, we
   will not address this issue further.

   47 U.S.C. S: 503(b).

   47 C.F.R. S: 1.80.

   The Commission's Forfeiture Policy Statement and Amendment of Section 1.80
   of the Rules to Incorporate the Forfeiture Guidelines, Report and Order,
   12 FCC Rcd 17087 (1997), recon. denied, 15 FCC Rcd 303 (1999) ("Forfeiture
   Policy Statement").

   47 U.S.C. S: 503(b)(2)(E).

   NAL Response at 25.

   See 47 U.S.C. S: 503(b)(5); see also 47 C.F.R. 1.80(d).

   NAL Response at 25.

   47 C.F.R. S: 15.101(a).

   47 C.F.R. S: 2.902.

   47 C.F.R. S: 2.909(b).

   See 47 C.F.R. S:S: 2.901-2.1093.

   See, e.g., 47 C.F.R. S: 15.101(a).

   See generally 47 C.F.R. S:S: 15.101-15.123.

   See 47 C.F.R. S: 2.952.

   See 47 C.F.R. S: 2.955.

   See 47 C.F.R. S: 2.956.

   See 47 C.F.R. S:S: 2.954, 15.19 and 15.21.

   47 C.F.R. S: 15.101(a); see also Behringer USA, Inc., Notice of Apparent
   Liability for Forfeiture, 21 FCC Rcd 1820, 1825 P: 15 (2006), forfeiture
   ordered, 22 FCC Rcd 10451 (2007) ("Behringer") (forfeiture paid).

   See Communications Act Amendments of 1978, Pub. L. No. 95-234, 92 Stat. 33
   (1978).

   S. Rep. No. 95-580, at 1 (1977).

   Id. at 2, 6.

   See 47 C.F.R. S: 2.907.

   S. Rep. No. 95-580, at 9.

   See Amendment of the Regulations to Expand the Notification and
   Verification Equipment Authorization Procedures, Report and Order, 96 FCC
   2d 948, 949 (1984) ("Verification Report and Order").

   Id. at 954.

   Id. at 953. Cf. Amendment of Part 76 of the Commission's Rules and
   Regulations Concerning the Cable Television Certificate of Compliance
   Process, Report and Order, 69 FCC 2d 697, 704 (1978) (clarifying that the
   registration statement adopted for cable television operators in lieu of
   the certification process was sufficient authorization under Section 503
   such that a forfeiture may be imposed without prior issuance of a
   citation). See also Implementation of P.L. 97-257, Amendment of Section
   1.80(d) of the Commission's Rules and Regulations, Letter, 100 FCC 2d 968,
   970 (1985) (affirming the denial of a petition for declaratory ruling
   seeking a ruling that, prior to the 1982 amendments to Section 503, cable
   operators were entitled to the initial warning protections provided in
   Section 503(b)(5) because they were not in the category of "licensees,
   permittees, holders of certificates, or of other authorizations" listed in
   that subsection).

   We note that the Commission has never previously addressed the legislative
   history set forth above or determined whether verification constitutes an
   "authorization" for purposes of Section 503(b)(5). To the extent that FCC
   precedent suggests a conclusion contrary to the one that we reach here, we
   hereby overrule such precedent on the basis of the preceding analysis.
   See, e.g., Implementation of Sections 255 and 251(a)(2) of the
   Communications Act of 1934, 16 FCC Rcd 6417, 6464-65 (1999) (explaining
   that, for purposes of assessing forfeitures for violations of Section 255,
   a manufacturer "who does not hold any authorization from the Commission
   and is not otherwise engaged in activity for which such authorization is
   required is in a markedly different position than a common carrier against
   whom the Commission may assess a forfeiture for section 255 violations
   without first issuing a citation and providing an opportunity for
   corrective action."); In the Matter of Rocky Mountain Radar, 12 FCC Rcd
   22453 (1997) (citation issued for manufacture and marketing of radar
   jamming devices in violation of Act and Commission rules) (subsequent
   history omitted).

   NAL Response at 31.

   Id. at 32 (emphasis added).

   Id.

   Id. (quoting DTV Review Second Report and Order, 17 FCC Rcd at 16003 P:
   56).

   Id. (quoting DTV Review Second Report and Order, 17 FCC Rcd at 16003-4 P:
   56, 59).

   Id. at 33-34.

   Id. at 34.

   Id.

   47 C.F.R. S: 15.117(i)(1). See supra P:P: 2-3.

   DTV Review Second Report and Order, 17 FCC Rcd at 16003 P: 56 and n. 86
   (emphasis added).

   See DTV Tuner Report and Order, 20 FCC Rcd at 11204 P: 19; Second Periodic
   Review of the Commission's Rules and Policies Affecting the Conversion to
   Digital Television, Report and Order, 19 FCC Rcd 18279, 18351-53 P:P:
   166-68 (2004) ("Second Periodic Review").

   See Second Periodic Review of the Commission's Rules and Policies
   Affecting the Conversion to Digital Television, Second Report and Order,
   22 FCC Rcd 8776 , 8782-83 P: 3 (2007) ("Second Periodic DTV Review 2007").

   NAL Response at 34-37, citing http://www.dtv.gov/dtvtipsheet.pdf (stating
   that "DTV equipment may be purchased as an all-in-one or component
   solution. `Integrated' DTV sets with built-in tuners are an all-in-one
   solution for DTV - they include a digital tuner to receive over-the-air
   DTV broadcasts and a monitor to display the programming. A `component'
   solution includes a DTV monitor (screen) without a DTV tuner (these
   monitors are sometimes labeled `HD Ready'). Monitors must be paired with a
   cable or satellite set-top box, or stand-alone DTV tuner.").

   http://www.dtv.gov/dtvtipsheet.pdf.

   NAL Response at 40.

   Id.

   Id. at 40-41.

   47 C.F.R. S: 1.429(d).

   The DTV Tuner Report and Order was published in the Federal Register on
   July 6, 2005. See 70 Fed. Reg. 38800 (July 6, 2005). Therefore, a timely
   petition for reconsideration of the DTV Tuner Report and Order should have
   been filed not later than August 5, 2005.

   See, e.g., MCI Telecommunications Corp. v. Pacific Northwest Bell
   Telephone Co., Memorandum Opinion and Order, 5 FCC Rcd 216, 228, n.38
   (1990), recon. denied, 5 FCC Rcd 3463 (1990), appeal dismissed sub nom.
   Mountain States Tel. and Tel. Co. v. FCC, 951 F.2d 1259 (10th Cir. 1991)
   (per curiam).

   DTV Tuner Report and Order, 20 FCC Rcd at 11196 P: 1.

   Id. at 11204 P: 20.

   See also infra P:P: 41-42.

   NAL Response at 44.

   See supra P:P: 13-15.

   See, e.g., General Elec. Co. v. U.S. E.P.A., 53 F.3d 1324, 1329 (D.C. Cir.
   1995) (under fair notice principle, which is grounded in due process but
   has now been incorporated into administrative law, an agency may impose
   civil or criminal liability provided that "a regulated party acting in
   good faith would be able to identify, with `ascertainable certainty,' the
   standards with which the agency expects parties to conform." (citing
   Satellite Broadcasting Co. v. FCC, 824 F.2d 1, 3 (D.C. Cir. 1987); Diamond
   Roofing Company, Inc. v. Occupational Safety and Health Review Comm'n, 528
   F.2d 645, 649 (5th Cir. 1976)).

   Id. at 48.

   Id.

   See Forfeiture Policy Statement, 12 FCC Rcd at 17092-93 P: 8.

   See Forfeiture Policy Statement, 12 FCC Rcd at 17099 P: 23; see also 47
   C.F.R. S:1.80(b)(4) ("The Commission and its staff may use these
   guidelines in particular cases [, and] retain the discretion to issue a
   higher or lower forfeiture than provided in the guidelines, to issue no
   forfeiture at all, or to apply alternative or additional sanctions as
   permitted by the statute.") (emphasis added).

   NAL, 22 FCC Rcd at 10534-35 P: 11.

   See 47 U.S.C. S: 503(b); 47 C.F.R. S: 1.80(a), (b); see also Forfeiture
   Policy Statement, 12 FCC Rcd at 17100-1
   P: 27.

   See Globcom, Inc. d/b/a Globom Global Commun., Order of Forfeiture, 21 FCC
   Rcd 4710, 4723 P: 35 (2006) ("Globcom").

   NAL Response at 49.

   Id. at 49-50 (citing NAL, 22 FCC Rcd at 10535 n. 39). We address
   Syntax-Brillian's arguments concerning the calculation of the number of
   violations at P:P: 31-35, infra.

   NAL, 22 FCC Rcd  at 10535 P: 13.

   Id.

   NAL Response at 50-51.

   Id.

   See also infra P: 33.

   NAL Response at 51.

   NAL, 22 FCC Rcd at 10534-35 P: 11.

   NAL Response at 51.

   Id. We note that the NALs cited by Syntax-Brillian were issued by the
   Enforcement Bureau, not the Commission. See, e.g., RadioShack Corporation,
   Notice of Apparent Liability for Forfeiture, 22 FCC Rcd 18437 (Enf. Bur.
   2007) (response received).

   Second Periodic DTV Review 2007, 22 FCC Rcd at 8784 P: 14.

   Id. at 52 (citing Forfeiture Policy Statement, 12 FCC Rcd at 17101 P: 29
   ("the predictability in the forfeiture process is an important objective
   and adherence to the guidelines is a method to achieve this goal")).

   See, e.g., InPhonic, Inc., Order of Forfeiture and Further Notice of
   Apparent Liability, 22 FCC Rcd 8689, 8699
   P: 24 (2007); Globcom, 21 FCC Rcd at 4723-24 P:P: 36-37.

   See NAL, 22 FCC Rcd at 10535 n. 36 (noting that "this forfeiture
   calculation methodology is consistent and predictable when applied to
   different factual scenarios").

   NAL Response at 53.

   Id.

   Id. at 53-55.

   Id. at 5755-56 (citing Webnet Communications, Inc. Notice of Apparent
   Liability for Forfeiture, 17 FCC Rcd 11603 (2002); Vista Group
   International, Inc., Notice of Apparent Liability for Forfeiture, 14 FCC
   Rcd 13814 (1999); All American Telephone Company, Inc., Notice of Apparent
   Liability for Forfeiture, 13 FCC Rcd 15040 (1998); Amer-I-Net Services
   Corporation, Notice of Apparent Liability for Forfeiture, 13 FCC Rcd 22055
   (1998); Brittan Communications International Corp., Notice of Apparent
   Liability for Forfeiture, 14 FCC Rcd 296 (1998); NOS Communications, Inc.
   and Affinity Network Incorporated, Notice of Apparent Liability for
   Forfeiture 16 FCC Rcd 8133 (2001); and Business Discount Plan, Notice of
   Apparent Liability for Forfeiture, 14 FCC Rcd 340 (1998)).

   Behringer, 21 FCC Rcd at 1823 P: 8; 22 FCC Rcd at 10459 P: 18.

   NAL, 22 FCC Rcd at 10535 P: 13.

   NAL Response at 53, n. 91. The Eighth Amendment states: "Excessive bail
   shall not be required, nor excessive fines imposed, nor cruel and unusual
   punishments inflicted." U.S. Const. amend. VIII.

   534 U.S. 321 (1998) ("Bajakajian"). Syntax-Brillian also cites Austin v.
   United States, 509 U.S. 602, 622-623 (1993) ("Austin") (remanding the case
   to the Court of Appeals after finding the Court of Appeals should have
   considered petitioner's claims that the forfeiture was excessive within
   the meaning of the Eight Amendment) and Alexander v. United States, 509
   U.S. 544, 559 (1993) ("Alexander") (addressing only the question of
   whether the Eighth Amendment applied and, finding that it did, remanding
   the case to the Court of Appeals). Neither Austin nor Alexander provides
   any support for Syntax-Brillian's argument that the NAL's proposed
   forfeiture violates the Eighth Amendment as they do not discuss the
   standard to be used to make this determination.

   Bajakajian, 534 U.S. at 339-340.

   NAL Response at 30 (citing Tolling Agreement, File No. EB-07-SE-023,
   executed by and between William H. Davenport, Assistant Chief, Enforcement
   Bureau, Federal Communications Commission, and Michael J. Miller, General
   Counsel, Syntax-Brillian Corporation (April 30, 2007) ("Tolling
   Agreement")).

   Id.

   Id.

   In its response to questions 1(c) and 2(c) of the LOI, which requested the
   number of certain mid-size receivers shipped interstate, Syntax-Brillian
   stated that the total number of receivers "shipped interstate after March
   1, 2006, is identified in Exhibit 2." LOI Response at 2, 6 (emphasis
   added). Similarly, in response to question 3(c) of the LOI, which
   requested the total number of large-size receivers shipped interstate,
   Syntax-Brillian stated "See Exhibit 3." LOI Response at 8. Nowhere in its
   LOI Response did Syntax-Brillian state that either Exhibit 2 or Exhibit 3
   also included intrastate shipments. Further, Syntax-Brillian did not
   explain in its NAL Response why it included intrastate shipments in its
   LOI Response.

   NAL Response at 30.

   Id.

   It appears that the NAL erroneously included certain negative importations
   listed by Syntax-Brillian in its LOI response, i.e., television receivers
   that were imported into the United States but then were subsequently
   exported. Exclusion of these receivers results in a reduction of the total
   number of receivers imported from 7, 175 to 4,856.

   In its NAL Response, Syntax-Brillian provided documentation, including
   invoices, packing lists and purchase orders, which indicate that 1,390
   units that it had listed as imports in its LOI Response were in fact
   shipped to Hong Kong, rather than the United States.

   See supra P: 23.

   NAL Response at 30, 61.

   Id. at 61 (where Syntax-Brillian states that it "performed" by executing
   the Tolling Agreement based on its understanding that this meant no NAL
   would issue).

   In the Matter of Local Phone Service, Inc., Notice of Apparent Liability
   for Forfeiture, 21 FCC Rcd 9974, 9976-79 P: 5, n. 19 and P: 13 (2006)
   ("Local Phone Service NAL").

   Tolling Agreement at P: 6(c).

   Id. at P: 6(a).

   Specifically, the staff had requested that Syntax-Brillian provide
   information regarding its importation and interstate shipment of its Model
   LT20S receiver, a 20" television receiver that includes an analog tuner.
   According to Customs importation data, Syntax-Brillian imported 788 units
   of the LT20S receiver on March 3, 2007, after the March 1, 2007 deadline
   to cease importing non-DTV-compliant receivers with screen sizes less than
   25". Subsequent to issuance of the NAL, Syntax-Brillian confirmed that it
   did import units of the LT20S receiver after March 1, 2007, but indicated
   that these units were distributed to Syntax-Brillian employees and were
   not sold. Since these units were not imported for sale in the United
   States, they do not come within the purview of Section 15.117(i)(1)(iii).

   See, e.g., Local Phone Service NAL, 21 FCC Rcd at 9976 P: 5, n. 19.

   NAL Response at 30.

   We derived this amount as follows: (1000 units * $50/unit) + (1500 units *
   $75/unit) + (2500 units * $100/unit) + (5000 units * $125/unit) + (1,524
   units * $150/unit) = $1,266,100. See NAL, 22 FCC Rcd at 10535 P: 13-15.

   NAL Response at 58-60.

   NAL Response at 58-60.

   See Forfeiture Policy Statement, 12 FCC Rcd at 17099 P: 23; see also 47
   C.F.R. S:1.80(b)(4) ("The Commission and its staff may use these
   guidelines in particular cases [, and] retain the discretion to issue a
   higher or lower forfeiture than provided in the guidelines, to issue no
   forfeiture at all, or to apply alternative or additional sanctions as
   permitted by the statute.") (emphasis added).

   See, e.g., SBC Communications, Inc. v. FCC, 373 F.3d 140, 151-52 (D.C.
   Cir. 2004) (finding that, even though the FCC considered, but may not have
   assigned any weight to, each of the factors in section 503(b)(2)(E), as
   long as there is a "rational relationship between [the factors used] and
   the extent of the fine" its application of the statutory factors is
   reasonable).

   NAL, 22 FCC Rcd at 10535 P: 13.

   Id. at 10535-36 P: 15.

   See, e.g., All American Telephone, Inc., Forfeiture Order, 16 FCC Rcd
   16601, 16609-10 P: 19 (2001) (history of compliance not a mitigating
   factor warranting reduction of forfeitures assessed for slamming
   violations by a common carrier because of the egregious nature of the
   violations).

   See e.g., United States Cellular Corporation, Notice of Apparent Liability
   for Forfeiture, 22 FCC Rcd 16424 P: 14 (2007) (remedial efforts taken by a
   wireless carrier after the deadline for compliance with the E911 95
   percent handset penetration requirement not a mitigating factor warranting
   reduction of forfeiture) (forfeiture paid); AT&T Wireless Services, Inc.,
   Forfeiture Order, 17 FCC Rcd 21866, 21875-6 P:P: 26-28 (2002) (remedial
   action to correct tower painting violation was not a mitigating factor
   warranting reduction of forfeiture); Seawest Yacht Brokers, Forfeiture
   Order, 9 FCC Rcd 6099, 6099 P: 7 (1994) (corrective action taken to comply
   with the Rules is expected, and does not mitigate any prior forfeitures or
   violations).

   NAL Response at 59.

   Forfeiture Policy Statement, 12 FCC Rcd at 17098 P: 21; see also 47 C.F.R.
   S: 1.17.

   NAL Response at 50 n. 85, 59-60.

   Id. at 50 n. 85 (citing Second Periodic DTV Review 2007 at P: 14).

   Id. at P: 1.

   Id. at P:P: 4-5, 11-12.

   NAL Response at 58, 60.

   According to Syntax-Brillian's website, the Syntax Groups Corporation was
   founded in May 2003 and the Brillian Corporation was founded in 1997. See
   http://www.syntaxbrillian.com/company/history.html.

   NAL, 22 FCC Rcd at 10537 P: 19.

   See supra P: 18; see also DTV Tuner Report and Order, 20 FCC Rcd at 11196
   P:P: 1, 20.

   Id. at 11203 P: 17.

   47 C.F.R. S: 1.17(a)(2).

   47 C.F.R. S: 1.17(b)(4).

   In the Matter of Amendment of Section 1.17 of the Commission's Rules
   Concerning Truthful Statements to the Commission, Report and Order, 18 FCC
   Rcd 4016, 4016-17 P: 1-2, 4021 P: 12 (2003), recon. denied, Memorandum
   Opinion and Order, 19 FCC Rcd 5790, further recon. denied, Memorandum
   Opinion and Order, 20 FCC Rcd 1250 (2004) ("Amendment of Section 1.17").

   See id. at 4017 P: 2 (stating that the revision to Section 1.17 is
   intended to "prohibit incorrect statements or omissions that are the
   result of negligence, as well as an intent to deceive").

   NAL Response at 30; see also supra P:P: 31-35.

   NAL Response at 30.

   LOI Response at 2, 6, and 8.

   NAL Response at 30, Exhibit 1.

   Amendment of Section 1.17, 18 FCC Rcd at 4021 P: 12.

   See, e.g., In re Applications of Citicasters License, L.P., et al.,
   Memorandum Opinion and Order and Notice of Apparent Liability, 22 FCC Rcd
   19324, 19338 P: 40 (2007) (forfeiture paid) (finding that a licensee's
   false certification that it had not violated the Act or any Commission
   rules during the preceding license term had no reasonable basis but was
   not made with the intent to deceive Commission and, therefore, violated
   Section 1.17(a)(2) of the rules) ("Citicasters").

   47 U.S.C. S: 503(b)(1)(B); 47 C.F.R. S: 1.80(a)(1).

   47 U.S.C. S: 503(b); 47 C.F.R. S: 1.80(f).

   See, e.g., SBC Communications, Inc., Forfeiture Order, 17 FCC Rcd 7589,
   7591 (2002).

   Section 312(f)(1) of the Act defines "willful" as "the conscious and
   deliberate commission or omission of [any] act, irrespective of any intent
   to violate" the law. 47 U.S.C. S: 312(f)(1). The legislative history of
   Section 312(f)(1) of the Act clarifies that this definition of willful
   applies to both Sections 312 and 503(b) of the Act, H.R. Rep. No. 97-765,
   97th Cong. 2d Sess. 51 (1982), and the Commission has so interpreted the
   term in the Section 503(b) context. See Southern California Broadcasting
   Co., Memorandum Opinion and Order, 6 FCC Rcd 4387, 4388 (1991), recon.
   denied, 7 FCC Rcd 3454 (1992) ("Southern California").

   See Forfeiture Policy Statement, 12 FCC Rcd at 17113; 47 C.F.R. S:
   1.80(b)(4), Note to Paragraph (b)(4): Section I. Base Amounts for Section
   503 Forfeitures.

   See 47 U.S.C. S: 503(b)(2)(D) (setting forth the statutory maximum
   forfeiture for entities other than broadcasters and common carriers). See
   also Amendment of Section 1.80 of the Commission's Rules and Adjustment of
   Forfeiture Maxima to Reflect Inflation, Order, 19 FCC Rcd 10945 (2004)
   (adjusting the maximum forfeiture amounts for entities other than
   broadcasters and common carriers to $11,000/$97,500). See also
   Citicasters, 22 FCC Rcd at 19339 P: 43 (using the base forfeiture amount
   for misrepresentation/lack of candor as the base forfeiture for violation
   of Section 1.17 of the rules).

   See Forfeiture Policy Statement, 12 FCC Rcd at 17100; 47 C.F.R. S:
   1.80(b)(4).

   In the Matter of Amendment of Section 1.17 of the Commission's Rules
   Concerning Truthful Statements to the Commission, Notice of Proposed
   Rulemaking,17 FCC Rcd, 3296, 3297 P: 3 (2002).

   47 U.S.C. S: 503(b).

   47 C.F.R. S: 1.80.

   47 U.S.C. S: 504(a).

   See 47 C.F.R. S: 1.1914.

   Id.

   (Continued from previous page)

   (continued....)

   Federal Communications Commission FCC 08-109

   3

   Federal Communications Commission FCC 08-109