Warren Havens v. Mobex Network Services LLC

820 F.3d 80, 62 Communications Reg. (P&F) 754, 2016 U.S. App. LEXIS 6756, 2016 WL 1460397
CourtCourt of Appeals for the Third Circuit
DecidedApril 14, 2016
Docket14-4043
StatusPublished
Cited by19 cases

This text of 820 F.3d 80 (Warren Havens v. Mobex Network Services LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warren Havens v. Mobex Network Services LLC, 820 F.3d 80, 62 Communications Reg. (P&F) 754, 2016 U.S. App. LEXIS 6756, 2016 WL 1460397 (3d Cir. 2016).

Opinion

OPINION

ROTH, Circuit Judge:

Warren Havens and five entities under his- control brought this suit against competitors Mobex Network Services, LLC, Mobex Communications, Inc., Maritime Communications/Land Mobile, LLC (MCLM), Paging Systems, Inc. (PSI), and Touch Tel Corporation for allegedly violating the Federal Communications Act (FCA) and the Sherman Antitrust Act. The District Court dismissed the two FCA claims for failure to state a claim. After a nine-day bench trial, the District Court entered judgment for MCLM on the basis that no conspiracy existed. We will affirm.

I.

A. FACTS

Marine radio providers enable vessels to communicate while on waterways and on the high seas. An Automated Maritime Telecommunications System (AMTS) station is a special type of radio station in the United States that provides communication services between land and vessels in navigable waterways. The AMTS spectrum is 217 to 218 MHz and 219 to 220 MHz. 1 Advances in wireless technology have greatly expanded the potential uses of AMTS’s, including systems for public transportation safety, such '-as “Positive Train Control.” .

The FCC originally issued licenses to use AMTS-designated frequencies on a *84 site-based system. In this system, 1 the Site is a small geographic region defined by location and the waterway served. These “site-based” licenses were provided at no cost on a first-come, first-served basis. In 2000, the FCC stopped issuing? site-based licenses and began issuing AMTS licenses on-a geographic basis through a competitive bidding process. Under the new procedure, the FCC divided the United States into ten regions and, at two public auctions, sold “geographic” licenses for two blocks of AMTS frequencies (A block and B block) in each region. Both site-based and geographic licensees are subject to buildout and service requirements to remain valid. 2

Although geographic licensees may generally place stations anywhere within then-allotted region, they may' not interfere with the functioning of existing site-based stations. Specifically, 47 C.F.R. § 80.385(b)(1) requires that an “AMTS geographic area licensee must locate its stations at least 120 kilometers from the stations of .co-channel site-based AMTS licensees” to avoid radio interference with site-based usage. In other words, the location of a site-based station creates .a gap in a geographic licensee’s coverage area in which the geographic licensee is barred from transmitting on AMTS frequencies. If a site-based license is • terminated, revoked, or found invalid, however; the spectrum will revert automatically to the geographic licensee. 3

Plaintiffs and defendants are holders of various AMTS licenses in the United States. Out of the twenty geographic licenses in the United States that were available at auction, plaintiffs obtained thirteen, MCLM obtained four, and PSI obtained two. None of the defendants sought to bid on licenses in the same block and region in which the other defendants held a pre-existing site-based license. But plaintiffs .obtained geographic, licenses in areas overlaying many of Mobex, MCLM, and PSI’s pre-existing site-based licenses. At the center .of this dispute is MCLM’s refusal to disclose to plaintiffs -the location of MCLM’s operating site-based stations within plaintiffs’ geographic regions. Unable to agree on -who should turn over their geographic coordinates first, the parties did not exchange information.' This action, along with various FCC administrative proceedings, followed.

B. PROCEEDINGS

Ón June 20, 2008, plaintiffs brought claims against MCLM, Mobex Network Services, PSI, and Touch Tel. The parties then agreed to dismiss the case without prejudice in light of a pending action in California state court. ,On February 18, 2011, Havens filed a,.Second Amended Complaint under a new docket number and. added Mobex Communications as a defendant. Plaintiffs assert three- claims in the Second Amended Complaint. In Count I, they seek a mandatory injunction under §. 401(b) of the FCA to. force defendants to comply with 47 C.F.R.- § 80.385 and with the directives set out in three FCC documents, which plaintiffs refer to as the “Cooperation' Orders.” 4 Specifically, plaintiffs- request that the court require defendants to provide plaintiffs, with the operating contours for their site-based locations that are located within plaintiffs’ geographic locations. In Count II, plaintiffs allege that defendants violated *85 § 201(b) of the FCA by taking actions that are “unjust and unreasonable” - and seek monetary damages under §§ 206 and 207. Plaintiffs also allege in Count III that defendants violated § 1 of the Sherman Act by conspiring among themselves and with non-named parties, in unreasonable restraint of trade or commerce in the AMTS market, as evidenced by defendants’ coordination of the purchase of A and B block licenses, their agreement to “warehouse” licenses by failing to construct site-based stations and by refusing to disclose the operating stations’ contours, and their false representations to the industry and the FCC. 5 = - -

Plaintiffs attached the three “Cooperation Orders” to the Second Amended Coip-plaint. The first document is an April 8, 2009, FCC declaratory ruling in response to MCLM’s request for clarification regarding § 80.385(b)(1), in which the Commission declared that a geographic licensee’s co-channel interference protection obligations should be based on actual operating parameters, rather than maximum permissible operating parameters. In a footnote, the FCC then stated: “As we noted in [a prior] decision, we expect incumbent AMT'S licensees to cooperate with geographic licensees in order to avoid and resolve interference issues. This includes, at a minimum, providing upon request sufficient information to enable geographic licensees to calculate the site-based station’s protected contour.” 6

The second ■ Cooperation Order, dated March 20, 2009, concerns a marine radio provider’s application to modify its AMTS geographic license and PSI’s petition to dismiss the application on the basis that the geographic licensee had not afforded PSI’s site-based location adequate protection.- In dismissing PSI’s petition, the FCC noted that the application had to make certain assumptions regarding PSI’s site-based location. In’ the immediately following footnote, the FCC then stated that “AMTS site-based incumbents are expected to cooperate with' geographic licensees in order to avoid and resolve interference issues.... This includes, at a minimum, providing upon request sufficient information to enable geographic licensees to calculate the site-based station’s protected contour.” 7

The last. Cooperation Order is an April 16, 2010, FCC denial of reconsideration of its declaratory ruling at issue in the first Cooperation Order.

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Bluebook (online)
820 F.3d 80, 62 Communications Reg. (P&F) 754, 2016 U.S. App. LEXIS 6756, 2016 WL 1460397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warren-havens-v-mobex-network-services-llc-ca3-2016.