Sec. 2.803  Marketing of radio frequency devices prior to equipment 
          authorization.

    (a) Except as provided elsewhere in this section, no person shall 
sell or lease, or offer for sale or lease (including advertising for 
sale or lease), or import, ship, or distribute for the purpose of 
selling or leasing or offering for sale or lease, any radio frequency 
device unless:
    (1) In the case of a device subject to type acceptance, 
certification, or notification, such device has been authorized by the 
Commission in accordance with the rules in this chapter and is properly 
identified and labelled as required by Sec. 2.925 and other relevant 
sections in this chapter; or
    (2) In the case of a device that is not required to have a grant of 
equipment authorization issued by the Commission, but which must comply 
with the specified technical standards prior to use, such device also 
complies with all applicable administrative (including verification of 
the equipment or authorization under a Declaration of Conformity, where 
required), technical, labelling and identification requirements 
specified in this chapter.
    (b) The provisions of paragraph (a) of this section do not prohibit 
conditional sales contracts between manufacturers and wholesalers or 
retailers where delivery is contingent upon compliance with the 
applicable equipment authorization and technical requirements, nor do 
they prohibit agreements between such parties to produce new products, 
manufactured in accordance with designated specifications.
    (c) Notwithstanding the provisions of paragraphs (a), (b), (d) and 
(f) of this section, a radio frequency device may be advertised or 
displayed, e.g., at a trade show or exhibition, prior to equipment 
authorization or, for devices not subject to the equipment authorization 
requirements, prior to a determination of compliance with the applicable 
technical requirements provided that the advertising contains, and the 
display is accompanied by, a conspicuous notice worded as follows:

    This device has not been authorized as required by the rules of the 
Federal Communications Commission. This device is not, and may not be, 
offered for sale or lease, or sold or leased, until authorization is 
obtained.

    (1) If the product being displayed is a prototype of a product that 
has been properly authorized and the prototype, itself, is not 
authorized due to differences between the prototype and the authorized 
product, the following disclaimer notice may be used in lieu of the 
notice stated in paragraph (c) introductory text of this section:

    Prototype. Not for sale.

    (2) Except as provided elsewhere in this chapter, devices displayed 
under the provisions of paragraphs (c) introductory text, and (c)(1) of 
this section may not be activated or operated.
    (d) Notwithstanding the provisions of paragraph (a) of this section, 
the offer for sale solely to business, commercial, industrial, 
scientific or medical users (but not an offer for sale to other parties 
or to end users located in a residential environment) of a radio 
frequency device that is in the conceptual, developmental, design or 
pre-production stage is permitted prior to equipment authorization or, 
for devices not subject to the equipment authorization requirements, 
prior to a determination of compliance with the applicable technical 
requirements provided that the prospective buyer is advised in writing 
at the time of the offer for sale that the equipment is subject to the 
FCC rules and that the equipment will comply with the appropriate rules 
before delivery to the buyer or to centers of distribution. If a product 
is marketed in compliance with the provisions of this paragraph, the 
product does not need to be labelled with the statement in paragraph (c) 
of this section.
    (e)(1) Notwithstanding the provisions of paragraph (a) of this 
section, prior

[[Page 507]]

to equipment authorization or determination of compliance with the 
applicable technical requirements any radio frequency device may be 
operated, but not marketed, for the following purposes and under the 
following conditions:
    (i) Compliance testing;
    (ii) Demonstrations at a trade show provided the notice contained in 
paragraph (c) of this section is displayed in a conspicuous location on, 
or immediately adjacent to, the device;
    (iii) Demonstrations at an exhibition conducted at a business, 
commercial, industrial, scientific, or medical location, but excluding 
locations in a residential environment, provided the notice contained in 
paragraphs (c) or (d) of this section, as appropriate, is displayed in a 
conspicuous location on, or immediately adjacent to, the device;
    (iv) Evaluation of product performance and determination of customer 
acceptability, provided such operation takes place at the manufacturer's 
facilities during developmental, design, or pre-production states; or
    (v) Evaluation of product performance and determination of customer 
acceptability where customer acceptability of a radio frequency device 
cannot be determined at the manufacturer's facilities because of size or 
unique capability of the device, provided the device is operated at a 
business, commercial, industrial, scientific, or medical user's site, 
but not at a residential site, during the development, design or pre-
production stages. A product operated under this provision shall be 
labelled, in a conspicuous location, with the notice in paragraph (c) of 
this section.
    (2) For the purpose of paragraphs (e)(1)(iv) and (e)(1)(v) of this 
section, the term manufacturer's facilities includes the facilities of 
the party responsible for compliance with the regulations and the 
manufacturer's premises, as well as the facilities of other entities 
working under the authorization of the responsible party in connection 
with the development and manufacture, but not marketing, of the 
equipment.
    (3) The provisions of paragraphs (e)(1)(i), (e)(1)(ii), (e)(1)(iii), 
(e)(1)(iv), and (e)(1)(v) of this section do not eliminate any 
requirements for station licenses for products that normally require a 
license to operate, as specified elsewhere in this chapter. 
Manufacturers should note that station licenses are not required for 
some products, e.g., products operating under part 15 of this chapter 
and certain products operating under part 95 of this chapter.
    (4) Marketing, as used in this section, includes sale or lease, or 
offering for sale or lease, including advertising for sale or lease, or 
importation, shipment, or distribution for the purpose of selling or 
leasing or offering for sale or lease.
    (5) Products operating under the provisions of this paragraph (e) 
shall not be recognized to have any vested or recognizable right to 
continued use of any frequency. Operation is subject to the conditions 
that no harmful interference is caused and that any interference 
received must be accepted. Operation shall be required to cease upon 
notification by a Commission representative that the device is causing 
harmful interference and shall not resume until the condition causing 
the harmful interference is corrected.
    (f) For radio frequency devices subject to verification and sold 
solely to business, commercial, industrial, scientific, and medical 
users (excluding products sold to other parties or for operation in a 
residential environment), parties responsible for verification of the 
devices shall have the option of ensuring compliance with the applicable 
technical specifications of this chapter at each end user's location 
after installation, provided that the purchase or lease agreement 
includes a proviso that such a determination of compliance be made and 
is the responsibility of the party responsible for verification of the 
equipment. If the purchase or lease agreement contains this proviso and 
the responsible party has the product measured to ensure compliance at 
the end user's location, the product does not need to be labelled with 
the statement in paragraph (c) of this section.
    (g) The provisions in paragraphs (b) through (f) of this section 
apply only to devices that are designed to comply with, and to the best 
of the responsible party's knowledge will, upon testing,

[[Page 508]]

comply with all applicable requirements in this chapter. The provisions 
in paragraphs (b) through (f) of this section do not apply to radio 
frequency devices that could not be authorized or legally operated under 
the current rules. Such devices shall not be operated, advertised, 
displayed, offered for sale or lease, sold or leased, or otherwise 
marketed absent a license issued under part 5 of this chapter or a 
special temporary authorization issued by the Commission.
    (h) The provisions in subpart K of this part continue to apply to 
imported radio frequency devices.
[ 62 FR 10468 , Mar. 7, 1997]