MIKE POMPEO 
4TH DIST RICT. KANSAS 
The Honorable Tom Wheeler 
Chairman 
cteongress of tbe Wntteb ~tates 
1!}ou~e of l\epre~entatibe~ 
mta~bington, tllCIC 20515-1604 
October 27, 2014 
Federal Communications Commission 
445 12th Street, SW 
Washington, DC 20554 
Dear Chairman Wheeler: 
107 CANNON HOUSE OFFICE BUILDING 
(202)225- 6216 
As a member of the House Energy and Commerce Subcommittee on Communications and 
Technology, I am writing to inquire into the Federal Communications Commission's ("FCC") oversight 
ofthe ATSC patent pool, which has been acting as a government granted monopoly since the digital 
television transition (DTV). 
A recent article by Zack Christenson of American Consumer Institute titled "Abuse From Patent 
Pools" highlighted concerns about the potential exploitation of the ATSC patent pool. The article points 
out that the licensing fees charged by the ATSC pool are five times as much as fees charged for similar 
technologies around the world. As the FCC requires all TVs and tuning devices sold in the U.S. to 
include an ATSC tuner, manufacturers are left without choice but to pay the higher royalty. As the article 
states, "higher manufacturing costs mean that consumers will pay higher retail prices for these goods." 
Furthermore, the December 1996 FCC report and order on the DTV proceedings stated that the 
"proponents agreed to make any relevant patents that they owned available either free of charge or on a 
reasonable, nondiscriminatory basis." I am concerned that the royalty rate does not comply with this 
order. 
Essentially, it is a hidden tax on American consumers. According to the Consumer Electronics 
Association, approximately 40 million televisions are sold in the United States each year. Per the patent 
pool's administrator, the licensing fee is $5 per television set, resulting in a $200 million annual tax on 
consumers. 
Therefore, I would like to request information on: 
1. What oversight the FCC has carried out in regards to how the A TSC patent pool fee is 
being set and administered and, more specifically, how does the FCC ensure this 
monopoly is not abused? 
2. If there hasn't been any oversight conducted by the FCC, I would like the commission to 
examine this issue to ensure that American consumers aren't continually abused to the 
tune of $200 million a year in fees. 
Thank you for your attention to this issue, I would appreciate a response by the end of November. 
If you should have any questions or require further information please feel free to contact my Legislative 
Director, Aaron Ringel, directly. 
Sincerely, • · ~ 
oy~ 
ER OF CONGRESS 
PRINTED ON RECYCLED PAPER