The LPTV Broadcasters Association is vehemently opposing the National Association of Broadcasters' (NAB) petition for a mandatory transition to ATSC 3.0. In a recent filing with the Federal Communications Commission (FCC), the association argues that the NAB's proposal would establish a government-backed monopoly, jeopardizing free over-the-air television access for millions.
The association contends that mandating the NextGen TV standard would empower a select group of patent owners to demand exorbitant licensing fees without proper oversight. This, they argue, constitutes "crony capitalism at its worst," as stated by Frank Copsidas, president and founder of the LPTV Broadcasters Association. The filing highlights that unlike previous broadcast standards, ATSC 3.0’s structure relies on a complex web of patents controlled by a few powerful companies, including LG Electronics, Samsung, and the Korea Electronics Technology Institute, leading to royalties potentially reaching $6.75 per TV unit.
The FCC's decision to not require "reasonable and non-discriminatory" licensing for ATSC 3.0 patents is a key concern, causing significant market instability. The filing cites LG's 2023 suspension of ATSC 3.0-compatible TV production after losing a patent lawsuit as a direct consequence of this decision. The association warns that mandatory certification fees could force numerous low-power stations off the air, significantly impacting free over-the-air television for viewers.
Drawing parallels to the Department of Justice's antitrust case against Google, the filing argues that a mandated ATSC 3.0 transition would mirror Google's tactics, limiting competition and forcing consumers into a system dictated by patent holders. The LPTV association supports a voluntary transition, allowing market forces to determine the success of ATSC 3.0, rather than government mandates.
The filing emphasizes that the proposed ATSC 3.0 mandate lacks the public benefits seen in the 2009 digital TV transition, which freed spectrum for wireless broadband and included consumer subsidies. The LPTV association isn't alone in its opposition; several industry groups, including the Consumer Technology Association and NCTA, share similar concerns, urging the FCC to reject the mandatory transition plan. Former FCC Commissioner Michael O’Rielly also criticized the proposal, highlighting the lack of clear consumer benefits.
“ATSC 3.0 isn’t a free and open standard; it’s built on a web of patents controlled by a handful of companies through patent pools,” the filing stated. "Innovation thrives in competitive environments, not under government fiat that props up private monopolies," it further emphasizes. The association firmly believes that if ATSC 3.0 is truly beneficial, its merits will be demonstrated in the market without forcing consumers to bear the burden of patent royalties.