On Aug. 29, the enforcement bureau of the Federal Communications Commission announced it had entered into an agreement with ClipperData LLC for violating federal communications law because it was installing and operating automatic equipment identification, or AEI, readers without acquiring the correct license.
In September 2015, Trains News Wire first reported that the Association of American Railroads’ Railway Alert Network issued a security warning to members to keep an eye out for unauthorized AEI readers. The warning came after AEI readers were discovered in New Jersey and Wyoming.
The Railway Alert Network report raised concerns that the people who installed the equipment readers trespassed on railroad property to do so. It also raised concerns about selling data on the movement of specific types of rail cars, arguing that the information could be used to “disrupt rail operations through intentional, and potentially destructive, acts.”
ClipperData CEO Sterling Lapinski told Trains News Wire soon after the alert was issued that his company had installed AEI readers along railroads in an effort to track freight cars in order to sell data to and about the industry. Lapinski said at the time that the installations were legal.
“We do have some devices installed but the network isn’t operations yet,” Lapinski said in 2015. “We’re not currently selling data, we’re just trying to see if it’s feasible.”
But according to the FCC order filed last month, ClipperData only had a license to install and operate one AEI reader but instead had at least 39 unlicensed devices around the country.
When reached by Trains News Wire, representatives from ClipperData declined to comment on the FCC fine.
