FCC Reaffirms Nearly $3 Million Fine for Marketing Unauthorized Drone Transmitters
In a Memorandum Opinion and Order (MO&O) released June 17, the FCC denied a Petition for Reconsideration filed by HobbyKing of a $2,861,128 fine for marketing noncompliant RF equipment and for failing to respond to FCC orders in its investigation of the company’s practices. In the same step, the FCC enforced its equipment marketing rules. The fine resulted from an FCC investigation initiated by ARRL’s January 2017 complaint that the HobbyKing equipment was "blatantly illegal at multiple levels."
A representative of the ARRL Electromagnetic Compatibility Committee (ECC) stated, "The Forfeiture Order is the final chapter of a story that started with a report to the ARRL Board by the EMC Committee in 2017, as a result 
of the discovery that aerial drone TV transmitting equipment was being imported and marketed without proper FCC authorization under FCC Part 15 rules."
The Electromagnetic Compatibility Committee was credited in the complaint with calling attention to the issue and prompting ARRL’s action.
As spelled out in ARRL’s 2017 complaint, the ARRL Laboratory had documented that the operating frequencies of these drone TV transmitters near the 1.3 GHz amateur band were dip-switch selectable for frequencies internationally assigned for use by Aeronautical Navigation, GPS, GLONASS L1, ATC Mode "S," as well as to both the interrogation and reply frequencies used for Air Traffic Control Air-Route Surveillance "transponder" radar systems.
ARRL’s complaint noted that given the channel configuration, these units would not have a legitimate amateur radio use, and that the marketing was directed at drone enthusiasts and not to licensed radio amateurs. "ARRL Laboratory tests did prove that only one of the seven available channels was within the 1.3 GHz amateur band," the ECC representative said.
"This is another example of ARRL not only affirmatively acting to protect our members’ interests, but also acting to protect the safety and security of vital services and the general public," the ECC representative said.
HobbyKing had denied that it was marketing its drone transmitters to US customers, but as the ARRL January 2017 complaint pointed out, ARRL Laboratory Manager Ed Hare, W1RFI, was able to purchase two drone transmitters from HobbyKing for testing in the ARRL Lab. "The FCC noted that amateur radio equipment used to telecommand model craft are limited to 1 W (1,000 mW), but three transmitters included in the FCC investigation operated at significantly higher power levels of 1,500 mW and 2,000 mW," ARRL said.
HobbyKing had told the FCC that it had no notice of the Commission’s authorization requirements; that the Fifth Amendment relieved HobbyKing of its duty to respond; that the forfeiture amount was inappropriate because its parent company, Indubitably, Inc., lacked the ability to pay to the Forfeiture Order; and that the Commission was time-barred from taking action against ABC Fulfillment Services LLC because it was not part of HobbyKing’s business.
"Upon review of HobbyKing’s Petition for Reconsideration and the entire record, we find no basis for reconsideration because the petition fails to present new information warranting reconsideration," the FCC said in the MO&O.
HobbyKing is the trade name of two US-based companies that include ABC Fulfillment Services LLC and Indubitably, Inc. Read an expanded version.