FCC Replies To Dahua And Hikvision Lawsuit Analyzed
This week, the FCC replied to Hikvision and Dahua's bid to overturn a rule that would sharply restrict the sale of the companies' video surveillance equipment in the U.S. over national security concerns.
Responding to an ongoing court case filed by the companies, the agency said its measure is not overbroad and that it acted within its authority.
In this report, we examine the agency's response to the PRC manufacturers' challenge, the background of the dispute, and the implications of the rule for Hikvision and Dahua.
For background, see:
- President Signs Secure Equipment Act Banning New FCC Authorizations of Dahua and Hikvision, Becomes Law
- US Senate Unanimously Passes FCC Ban Bill of Dahua / Hikvision
- FCC Prohibited Purposes Plan For Dahua And Hikvision Analyzed
- FCC Passes Ban Rulemaking Process Of Dahua and Hikvision
- FCC Affirms Can Revoke Dahua and Hikvision, Opens Comment On Revoking
Executive *******
********* *** ***** *** ********** ***** ****, ************ ********** ***** ******* ****** ********* ***,***** ** ***** ** ********** *** country's ************** ******** ** ******** *** importation *** **** ** ********* "****** to **** ** ************ **** ** national ********, ********* ** ****** ***** *******.
*** ****** **** *** *********** **** crafted ** ******** ** ****** ******** about *** *********' **** ** *** PRC *** *** ******** ******* ***** to *** ** ************** **************. ********* and ***** **** **** **** ***** US ******** **** *********** **** ***** has **** ***** ********** ************ ***** ****** ****** ********** *******, ** ****** ********.
** *** ****** ****** ** *** case, *** *** ****** ** ****** each ** *** *********' *********** ***** the ****, ********* ***** ********** **** the ****** ** "***** ************" *** phrase "******** **************" **** ** ********* covers ******** ********** **** ** *********** and **** *** ****. *** *** said ***** ******** "****** ******* ** the *****" *** **** *** ********* have ****** ** ****** *** ******* for *********** ******** ********** **** ** covered.
Summary ** *** ********
*********'* ***-**** ********, ***** ** * ******* ******* court ** ********** *.*., ********* ******* the *********' ****** **** *** *** overstepped *** ********* ** ******** *** rule *** **** *** **** ****** is ******* *** *******.
"***** *** *** *****, ***********' ******** will *** ** ********** ********," *** FCC **** ** *** *****. "*******, those ******** ****** ** ******** '*** the ******* ** ****** ******, ******** of ********** **********, ******** ******** ************ of ******** **************, *** ***** ******** security ********.'"
**** ************, *** *** ********:
- ***** ************ ********* ** "************** *********" under *** *****
- ***** ************ ********* ** **** ******* of ****** ** ************ **** ** national ********
- *** *** *** ********* ** ****** authorization *** "******* *********"
- *** ******'* ************** ** "******** **************" is **********
"Communications *********"
*** ****** ******* *** **** ** has ******* ******** ********* ********* ** Hikvision *** ***** **** ******* ***** products ********** "******* ************** *********" ***** a ****** ** ******** ********** *** legislative *******.
***** *** ***** *********** ********, ********* ******** ****** *********** ******* ************* *** (****), **** ** ******* ** ************** equipment, *** ****** ********** *****.
** ***** ****, *** ***'* ****** Safety *** ******** ******** ****** ********* a "******* ****" ** ******** *** equipment ****** ** **** ** ************ risk ** ******** ********, ***** ******** video ************ *********.
*** ****** **** ***** ****, ******* the ****** ********* ***— ***** *** enacted ***** ********* **** ***** *** Hikvision *** ******* ** *** ******* List—“Congress…intended…to ******* *** ****************** ********* *** the ***** ************ ********* **** ******* was ** *** ******* ****.”
***** *** *********' ******* *** ********* are *** "********* ** *** ************ of ******** ******** *********** ******* **** the ******** ********," **** *** "*********" for ************ ***** *********** **** *** internet ** **** ** ************, *** FCC ****.
"Unacceptable ****"
*** *** **** ***** **** *** companies' ********** **** ***** ******** ** not ********** ** "************ **** ** national ******** ****** *** ******* ** the ****** ******** ***."
******** ******* ******* ** ********* ******** to ********* ******* *** ***** ************ equipment *** ***** **** **********, *** agency *****.
*** ****** *** **** ********** ********* with *** *********' ********** **** ***** video ************ ********* "**** *** **** the '**********' ************ ***** ******* *(*) of *** ****** ******** *** ****** with ******* ** ***** ******* ** routing ** *********** **** **** ******* or ********** ********** **** *** **** data ** ******* ** ******* *** network ** ** ********* ********."
****** *** *** *** ****'* *********, the ****** **** ***** **** *** surveillance ********* *** ** ********** ** hackers.
....***********’ ******* *** ** ******** ** part ** * *******-***** ***** ************ system—a **** ** ******** **************—*** ** they *** ***********, **** ***** ****** constitute ******* *********** **** * ************** network. *** *******, ******** **** *** technology ******** **** ********* **** ***** surveillance *********“includes *************** **** ***** ***** ******* ** ****** ****** ***** *** **********, ****** ******* ** *** ***, ********** *******, **** **** *** ******** ** ***** **** *** *********, ** *** *** ******* ** * ****** ******.” [Emphasis Added]
Authority ** ****** *************
********* *** *********' *********** **** ** lacked *** ********* ** ****** *** ban, *** *** ***** **** *** Secure ********* *** ********** ******** *** agency ** **** **** ******. ********* to *** ***'* *****:
*** ****** ********* *** **** ****** granted *** *** ********* ** ******** the ********* ** **** ** ********* on *** ******* ****, ** ********* the ***’* ************* **** *** ****** had *********** ********* ** ** **, or ****.
*******, *** *** ***** **** ** was ******* ********* ** ****** *** authorization ** ******** ** *** ****************** ********** *** *** *********** ************* *** ** *** ************** *** of ****.
** ********* ** *** ***'* *****, the ***** ******** *** *** *********:
******* ***, *********, ***** *** ****** broad ********* ** ****** ************* ** any ****** ***** ***** "***** ******* interference" ** ***** **************. *** ******* states:
*** *** ********** ** *** ******** on *** ******* *** ******** ********* for **** ******:
*** *** ***created “*** *** ******* of the national ******* [and] for the purpose of promoting safety ** **** *** ********.” 47 U.S.C. § 151. It was therefore reasonable for the agency to interpret the promotion of the “public interest” under ******* *** ** ********* ********* ** ******** ******* *** **** **** ***** ********** *** ******** of the U.S. communications system. See Huawei Technologies, 2 F.4th at 427. [emphasis added]
*******,*** *** **** ***** ****** ** favor ** *** *** ******* ******.
Interpretation ** "******** **************"
***** ** ************ ** ********* *** term "*******," *** *** **** **** it ****** ** ******** ******** *********** for ******** ** *** ** ********* what *********** "******** **************" ***** *** prohibited ********. ***** ******* ******** *** USA ******* *** ** ****, * presidential ****** ********* *********** ** ******** infrastructure *******, *** * *********** **** the********** ** ******** ********'* ******** **** Management ******.
********* ** *** *****:
*** ****** *********** “******** **************” ** have *** ******* ******** ** ******* 1016(e) ** ***USA ******* *** ** ****: “systems and assets, whether physical or virtual, so vital to the United States that theincapacity ** *********** ** **** ******* *** ****** ***** **** * ************ ****** ** ********, ******** ******** ********, ******** ****** ****** ** ******, ** *** *********** ** ***** *******.”
*** ****** **** ******** ** *** additional ******* ** ********. *****, ** referencedPresidential ****** ********* **, the Directive on Critical Infrastructure Security and Resilience, which “advances a national unity of effort to strengthen and maintain secure, functioning, and resilient critical infrastructure” and identifies sixteen ******** ************** *******.
******, *** ****** ********** * *********** from *** ******** **** ********** ******, a *********** ** *** ********** ** Homeland ********, ***** *****55 “******** ******** *********” to guide national risk management efforts. [Emphasis Added]
** *** ********* **** ******* ************* about **** ********** *** ***** ******* to ************, **** *** ********* *** ask *** **, *** *** ****.
*** ** ***** ** ****** *** doubt ***** ******* ***********’ ******** *** be ******** ** ***********, *********** **** only **** ******** **** *** ********** bysubmitting * ******* *** * *********** ******. They have not done so, and their farfetched examples provide no basis on which to overturn the agency’s reasonable action. [Emphasis Added]
Manufacturers' ******
******* *** ********** ** **** ****, ********* *** Dahua ******* **** *** *** *********** interpreted *** ********* *** *** ************ under *** ********** ********. *** ********, the ********* ******* **** *** ****** Networks *** ** "******** ** ***** on ******* ********* **** ** '********* to' *** ********* ** ********* ****************** service."
"*** ********** *** *** **** *** to **** **** ***********' ********* ***** that **********. *** ***** **—********* ******** plainly *** ******** ******* ***** *******," the ********* ****.
********* *** ***** **** ******* **** Section *** ** *** ************** *** "has ** ******* ** ********* ******** or ********-******** ********." *** ********* ****:
...**** ******* ***** ******* ****’* *********, the ********** ****** ** **** ********** that *** ******* ******** *** ****** with ** ***********unbounded ********** ***** **** *** ********** ******* **** ** *** ****** ******—and that allows the Commission to proscribe authorization for equipment without regard to the limitations Congress wrote into the Secure Networks Act. [Emphasis Added]
*** ***** *********** ****** *** ********* from "******** ****** *** *** ******** into *** *.*. ******," *** ************* alleged.
**********
************, *** **** ** ***** ******* to ******** ************ ******** ************, *** ***********, ****** **************, Hangzhou ********* ******* **********, *** ***** Technology. ** ******* *** ************** *** products **** *** **** ***"****** ******, ******** ** ********** **********, physical ******** ************ ** ******** **************, and ***** ******** ******** ********."
***** *** **** ******* *** **************,*** *** *** ****** **** *** *** ********* ** revoke **** ************** — ****** ** has *** **** ** **** ** so.
******* **** ****, *** ********* **** filed ***** *** ********* *********** *** rule ** ******** ******* ******* ******. They **** ************ ** ***** **** into * ****** **** ****** *** U.S. ***** ** ******* *** *** District ** ******** *******.
***** ******* ***,***** **** **** ** ******** ** FCC ****** ** ******** ** *** federal ********* *********** **** *** ******* ******** *****.
*** ********* ****** ** *********** *** ************** ***** ******** **** *** *** ******** its *********, *** *** ****** ****** legal **********, *** **** *** ***** is ****************.
Next *****
*** **** ****** ****** ** ***** in *** **** ** ********** ** oral ******** ** *** ******. ** general, ****** *** *** **** ****** federal ******* ******. ** *** ***** decides ** ****** *** *****, ** would ****** *** **** ** *** FCC ** ***** *** *** ************* ** ******* ********.
************
*** ****** ****** ** *** *** entirely ******************* *** ***** ***** ********* *******, but *** ***** ************* ******* ** sales *** **** *********. *** ********* allege ** ** "********* ***** ******* to *******" ** *** ****** ******.
** *** ********* *** *** ********** in *********** *** *****, **** *** need ** ** ** *** *** suggested *** **** * *********** ****** — ***** ***** **** ******** ****** what ** "*** ******."