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 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  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 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]