FCC Bullies its way to $50,000

On February 16, 2010 the FCC published a consent agreement entered into with San Jose Navigation, Inc. where San Jose paid $50,000 to settle a fine issued to it by the FCC. San Jose Navigation 

It appears that San Jose was manufacturing and selling a GPS re-radiator.  Basically, this device can be mounted outside your vehicle and it will transmit a GPS signal to your portable unit.  If anyone has had the privilege of driving in a poor reception area, such as a big city, you will have experienced areas where the GPS loses satellite reception.  Using a re-radiator solves the problem because it is located outside the vehicle and also has a longer antenna.  No more lost satellite reception error messages.

Unfortunately, San Jose's equipement was apparently not certified as meeting FCC's standards (and apparently cannot be certified since the FCC does not approve this type of equipment for use).  Anyway, several federal agencies complained that the equipment might cause interference to normal GPS operations (which seems unlikely since the range of re-broadcast of the GPS signal is a matter of a meter or so).  As a result the FCC issued a Letter of Inquiry to San Jose.  In response, San Jose admitted selling the units, but immediately stopped on receipt of the LOI and recalled all unsold units.

The FCC was not impressed by the cessation of sale and the recall.  It issued a fine in  the amount of' $75,000 to San Jose and later settled for the $50,000.  Noteworthy, the FCC's records do not show that a formal Citation was ever issued to San Jose.  Folks, the FCC rules and the US Code are very explicit that a Citation must be issued before a NAL and fine can be issued to someone, if they do not have a license.  The typical LOI is not the equivalent of a Citation, because the rules and the statute have specific requirements that must be met by all Citations (such as affording the opportunity for a personal interview at the nearest FCC office).  I have taken the depositions of a number of FCC officials in various cases and they uniformally admit that no license is required by the FCC for the manufacture or sale of transmission equipment. 

This fine should not have been imposed in my opinion.  There was no Citation issued and one was required before issuance of the Notice of Apparent Liability.  Remember, the FCC cannot force anyone to pay the fine issued pursuant to an NAL without going to court and proving the case.  Routinely the FCC loses this type of case because of the failure to follow the proper procedures.  If you receive any contact from the FCC, contact your lawyer at once.  It is the only way to protect your rights.