Feds go to court in Portland to collect $2.8M fine against HobbyKing for marketing unauthorized drone transmi – OregonLive

The U.S. government Thursday filed a civil action in federal court in Portland against drone distributor HobbyKing to collect a $2.8 million fine for selling and marketing unauthorized communication devices for drones.

The Federal Communications Commission determined that HobbyKing marketed to U.S. customers at least 65 models of audio visual transmitters that were not certified by the federal agency and would not have a legitimate amateur radio use.

The certification requirement ensures that radio frequency equipment does not interfere with federal government operations, such as the Federal Aviation Administrations aeronautical radar systems. Fifteen of the 65 models created a threat to public safety, according to the civil complaint.

The federal regulatory commission also found that the drone transmitters were marketed to drone enthusiasts and not to licensed radio amateurs.

The Federal Communications Commission sent the company a letter on Nov. 1, seeking full payment of the fine within 30 days, according to the complaint. The amount remains unpaid, the complaint said.

The government is seeking $2.8 million for HobbyKings violations and $39,278 for the companys failure to respond to the commissioners orders, plus interest.

The company has argued to federal regulators that there are no marketing rules that specifically address versatile drone equipment capable of both amateur and non-amateur frequencies and that it had no notice that its marketing was unlawful.

The company also argued that responding to the agency would violate its Fifth Amendment right against self-incrimination and the amount of the fine should be reduced due to the companys inability to pay, according to court records.

The Federal Communications Commission rejected the companys arguments, saying its rules prohibit the marketing of radio frequency devices unless the devices have first been labeled and authorized consistent with the commissions rules.

HobbyKing is the trade name of several companies based in the U.S., including ABC Fulfillment Services and Indubitably, Inc., as well as a Hong Kong-based company, Hextronik. All of the companies are associated with a man named Anthony Hand.

The complaint is filed in Oregon because Indubitably, Inc.s principal place of business is Portland and the companies engaged in business in Oregon, according to the complaint.

-- Maxine Bernstein

Email mbernstein@oregonian.com; 503-221-8212

Follow on Twitter @maxoregonian

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Feds go to court in Portland to collect $2.8M fine against HobbyKing for marketing unauthorized drone transmi - OregonLive