Audio Video News

Is price gouging on patents inflating the prices of DTVs? A lobbying group says DTV patent holders are imposing onerous terms when licensing their technologies to competing manufacturers. And the Federal Communications Commission has promised to investigate.

At the heart of the storm is CUT FATT, or the Coalition United to Terminate Financial Abuses of the Television Transition. The lobbying group's members, including Vizio and Westinghouse, hope the FCC will make two findings.

One: "Declare that royalty demands for 'essential' patents that exceed international comparables violate FCC rules and that 'essential' patent holders have the burden of proving that their fees are reasonable and nondiscriminatory (RAND) based on international and industry comparables if their licensing terms are challenged."

Two: "Adopt rules that encourage all essential patent holders to form a comprehensive pool offering all 'essential' patents on a 'free or RAND' basis. Any patent holder that chooses not to join a pool should be required to publish its licensing terms, and demands that exceed international or industry comparables by more than 50 percent should be deemed to violate the FCC's 'free or RAND' licensing standard."

Or, more simply put: "The CUT FATT Petition urges the FCC to take immediate action to protect consumers against uncontrolled price gouging by DTV patent holders."

For more information see the CUTFATT website.