Transportation Intelligence, Inc. v. Federal Communications Commission

336 F.3d 1058, 357 U.S. App. D.C. 386, 29 Communications Reg. (P&F) 1259, 2003 U.S. App. LEXIS 14821
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 25, 2003
Docket02-1098
StatusPublished
Cited by4 cases

This text of 336 F.3d 1058 (Transportation Intelligence, Inc. v. Federal Communications Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Transportation Intelligence, Inc. v. Federal Communications Commission, 336 F.3d 1058, 357 U.S. App. D.C. 386, 29 Communications Reg. (P&F) 1259, 2003 U.S. App. LEXIS 14821 (D.C. Cir. 2003).

Opinion

Opinion for the Court filed by Circuit Judge GARLAND.

*1060 GARLAND, Circuit Judge.

Transportation Intelligence, Inc. appeals from an order of the Federal Communications Commission denying the company’s application for review of a decision to authorize a competitor to market a radio transmitter. Finding that the Commission’s order was neither arbitrary nor capricious, we affirm.

I

Both Transportation Intelligence (Tran-slntel) and Highway Information Systems (Highway) manufacture and sell highway advisory radio systems, which use low-power AM radio transmitters to broadcast traffic, emergency, and other information to drivers. 1 Translntel is a competitor, as well as a customer, of Highway; each company has developed and markets its own radio transmitter, while Translntel also resells some of Highway’s devices. Tran-slntel’s principals, Joanne and John Alpiser, were employed by Highway until they left to start Translntel in 1994. Joanne Alpiser’s father, Virgil Duncan, was also employed by Highway until he left the firm in 1998.

The Communications Act of 1934 grants the Federal Communications Commission (FCC) authority to promulgate “reasonable regulations,” consistent with “the public interest, convenience, and necessity,” to govern “the interference potential of devices which in their operation are capable of emitting radio frequency energy ... in sufficient degree to cause harmful interference to radio communications.” 47 U.S.C. § 302a(a). Acting pursuant to that authority, the FCC generally prohibits the sale of radio frequency devices absent FCC authorization, which for the type of transmitter at issue in this case requires the seller to obtain “certification.” See 47 C.F.R. §§ 2.803(a), 2.907; see generally id. § 2.801 et seq. A party seeking certification must submit a written application to the Commission, complete with detailed descriptions and measurements, “showing compliance with the pertinent FCC technical requirements.” Id. § 2.1033(b)(6); see id. §§ 2.1031-.1060. The Commission will grant a certificate only if it determines that the equipment is capable of complying with those requirements and that the grant “would serve the public interest, convenience and necessity.” Id. § 2.915(a); see id. § 2.919. 2

Once the FCC grants an application, any modification in the “design, circuitry or construction” of the equipment requires a new application for certification. Id. § 2.932(a). There is an exception, however, for certain minor modifications classified as “permissive.” Id. § 2.932(b). If the FCC finds that a manufacturer has failed to abide by these rules, it may revoke the device’s certification or assess a forfeiture penalty. See id. §§ 1.80(a), 2.939.

On May 19, 2000, Translntel filed a complaint with the Commission, alleging, among other things, that Highway had made substantial modifications to a low-power AM transmitter that the FCC had *1061 originally authorized in 1979, without seeking a new equipment certification. Tran-slntel stated that it discovered those modifications when purchasers of that Highway transmitter, which Translntel had resold, complained that the device caused interference with radio transmissions in Rockland County, New York. Translntel asked the FCC to revoke Highway’s certification, require a recall, impose a fine, and conduct a hearing on Highway’s character and fitness to hold an FCC equipment certification.

Highway responded to Translntel’s complaint by submitting an application for a new certification of the modified transmitter, which Highway had also altered to address the complained-of interference. Highway stated that it regarded the modifications it had made in its authorized device as “permissive,” but was applying for a new certification because it could not locate the original test data. On June 28, the FCC’s Office of Engineering and Technology (OET) granted Highway’s application.

On July 28, 2000, Translntel filed a petition for reconsideration with OET. It asked that Highway’s certification be rescinded or that a hearing be held on the matter in light of what it described as Highway’s willful violations of FCC regulations. In a letter dated November 17, 2000, addressing both Translntel’s complaint and its petition for reconsideration, OET denied the petition, refused to revoke Highways new certification, and deferred a decision on whether Highway’s alleged earlier infractions warranted a forfeiture penalty. OET stated that, because Highway’s modified device had now been properly certified and the interference concerns resolved, revocation of the certification was inappropriate.

On December 15, 2000, Translntel applied for review by the Commission of OET’s decision on its petition for reconsideration. Translntel again requested that the FCC revoke Highway’s certification or hold a hearing to determine whether Highway had the qualifications for an equipment certification. After considering the parties’ written submissions, the Commission denied Translntel’s application for review and refused to revoke the certification or designate the matter for a hearing. See Highway Info. Sys., 17 F.C.C.R. 4027, 402930 (2002) [hereinafter FCC Order],

In denying Translntel’s application for review, the Commission rejected Highway’s argument that the modifications it had made to its transmitter were permissive changes that did not require a new equipment authorization. Nonetheless, the FCC affirmed OET’s grant of certification. Although the modifications were not permissive as defined by FCC rules, the Commission determined that they were “relatively innocuous,” that “the resulting modified transmitter readily passed the Certification process,” and that the device was “now properly certified.” Id. at 4029. It also explained that the interference of which Translntel complained “was not the result of a rule violation or the lack of appropriate reCertification.” The Commission noted that although it might have pursued the imposition of a fine as an enforcement matter, the one-year statute of limitations for such a sanction had already passed. Id. (citing 47 C.F.R. § 1.80(a)(3)); see 47 C.F.R. § 1.80(c)(3). But “revocation of the equipment authorization sought by Translntel is not an appropriate remedy or sanction in this case,” the Commission said, noting that it had “stated before that violation of section 2.803 of our rules generally does not form the basis for a denial of an equipment authorization.” Id. (citing Toshiba Corp., 57 Rad. Reg.2d (P & F) 1619, 1622 & n. 5 (1985)).

*1062

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Cite This Page — Counsel Stack

Bluebook (online)
336 F.3d 1058, 357 U.S. App. D.C. 386, 29 Communications Reg. (P&F) 1259, 2003 U.S. App. LEXIS 14821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transportation-intelligence-inc-v-federal-communications-commission-cadc-2003.