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 NEWS  News  media  Information  202  /  418-  0500  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  1919  -  M  Street,  N.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974). 
 Report  No.  ET  98-  4  ACTION  IN  DOCKET  CASE  May  22,  1998 
 COMMISSION  ADOPTS  CHANGES  IN  RF  MARKETING  RULES  (ET  DOCKET  94-  45) 


 The  Commission  has  amended  the  marketing  regulations  that  apply  to  radio  frequency  (RF)  devices.  RF  devices  are  products  that  are  capable  of  emitting  RF  energy  in  their  operation, 
 such  as  radio  receivers,  computers,  video  cassette  recorders  and  radio  transmitters.  These  changes  to  the  rules  respond  to  a  Petition  for  Reconsideration  and  Clarification  filed  by  Ericsson, 
 Inc.  The  changes  will  provide  marketing  parity  for  products  that  are  domestically  manufactured  and  those  that  are  imported. 


 On  February  3,  1997,  the  Commission  adopted  a  Report  and  Order  in  this  proceeding.  Among  other  changes,  that  Report  and  Order  amended  the  marketing  rules  to  permit  the  limited 
 operation  of  RF  devices  prior  to  obtaining  an  equipment  authorization  or  making  a  determination  of  compliance  with  the  applicable  rules.  RF  devices  that  operate  in  an  authorized  radio  service 
 continue  to  require  a  license  prior  to  operation. 
 Ericsson  objected  to  the  Commission's  continuation  of  the  limits  on  the  number  of  RF  products  that  could  be  imported  prior  to  obtaining  an  equipment  authorization,  stating  that  these 
 limits  unfairly  restrict  the  ability  of  foreign  manufacturers  to  compete  with  domestic  manufacturers.  The  regulations  limited  the  importation  of  such  products  to  no  more  than  200 
 units  for  testing  and  evaluation  purposes  and  no  more  than  10  units  for  demonstration  at  industry  trade  shows.  Ericsson  also  objected  to  the  Commission's  requirement  that  manufacturers  must 
 obtain  a  license  to  operate  transmitters  in  the  authorized  radio  services  for  demonstrations  at  trade  shows,  demonstrations  at  exhibitions,  or  evaluation  of  product  performance.  Ericsson 
 requested  that  the  requirement  to  obtain  a  license  only  apply  to  entities  that  intend  to  provide  services  using  the  products  rather  than  to  entities,  like  manufacturers,  that  only  intend  to 
 demonstrate  the  products. 
 On  May  14,  1998,  the  Commission  adopted  a  Memorandum  Opinion  and  Order  in  this  proceeding  stating  that  it  is  concerned  about  the  potential  for  harmful  interference  that  could  be 
 caused  to  other  users  of  the  spectrum  should  large  quantities  of  non-  compliant  equipment 
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 be  imported  and  operated.  It  continues  to  believe  that  limits  are  necessary  on  the  number  of  unauthorized  devices  that  may  be  imported  routinely  for  testing  and  evaluation  or  display  at 
 trade  shows.  However,  the  Commission  agreed  that  Ericsson  had  made  a  compelling  argument  and  amended  its  rules  to  permit  the  routine  importation  of  up  to  2000  units  for  test  and 
 evaluation  purposes  and  up  to  200  units  for  display  at  trade  shows.  These  increased  limits  apply  only  to  equipment  intended  to  be  operated  in  an  authorized  radio  service  under  a  license  issued 
 by  the  Commission. 
 The  Commission  did  not  agree  with  Ericsson  that  the  requirement  to  obtain  a  license,  where  currently  required,  should  be  eliminated  for  equipment  manufacturers.  It  did  indicate, 
 however,  that  an  equipment  manufacturer  would  be  permitted  to  operate  its  equipment  for  demonstration  or  evaluation  purposes  under  the  authority  of  a  local  Commission-  licensed  service 
 provider.  The  local  licensee  must  grant  permission  to  the  manufacturer  to  operate  in  this  manner,  and  the  local  licensee  would  be  responsible  for  complying  with  all  of  the  operating 
 conditions  and  requirements  associated  with  its  license. 
 Action  by  the  Commission  May  14,  1998,  by  Memorandum  Opinion  and  Order  (FCC  98-  96).  Chairman  Kennard,  Commissioners  Ness,  Furchtgott-  Roth,  Powell  and  Tristani. 


 -  FCC  - 
 Office  of  Engineering  and  Technology  contact:  John  A.  Reed  at  (202)  418-  2455. 
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