§  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 certification, 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 § 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 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.

   (e)(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.

   (i) 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.

   (ii) Instead of obtaining a special temporary authorization or an
   experimental license, a manufacturer may operate its product for
   demonstration or evaluation purposes under the authority of a local FCC
   licensed service provider. However, the licensee must grant permission
   to the manufacturer to operate in this manner. Further, the licensee
   continues to remain responsible for complying with all of the operating
   conditions and requirements associated with its license.

   (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, 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, as amended at  63 FR 31646 , June 10, 1998;
    63 FR 36597 , July 7, 1998]