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Radio "piracy" began with the advent of regulations of the public airwaves in the United States at the dawn of the Age of Radio. Initially, radio, or wireless as it was more commonly called, was an open field of hobbyists and early inventors and experimenters, including Nikola Tesla, Lee De Forest, and Thomas Edison.
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The Navy soon began complaining to a sympathetic press that amateurs were disrupting naval transmissions.
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When Wilson declared war on Germany on April 6, 1917, he also issued an executive order closing most radio stations not needed by the US government. The Navy took it a step further and declared it was illegal to listen to radio or possess a receiver or transmitter in the US, but there were doubts they had the authority to issue such an order even in war time. The ban on radio was lifted in the US in late 1919.
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Interesting history of the bootleg radios (Free Radio). Some logos are really cool, the second one looks like an RKO Radio Pictures but says "Free Radio" and has a hand of an individual holding the tower... In the end of the article there is a FAIR USE message that says: "This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc.." Isn't that what we all want? They also make sure that they "DO NOT CONDONE ILLEGAL PIRATE HF RADIO ACTIVITY": it's better to have a legal radio station than have "FCC KNOCKING AT YOU DOOR."