Dish Network 1998 Annual Report Download - page 20

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18
With respect to the royalty rate for retransmission of distant network and superstation signals, the Librarian
of Congress set the rate at 27 cents per subscriber per month – a significant increase over the previously applicable
rates. While judicial review of this ruling is pending, the new rate became effective January 1, 1998.
Export Regulation. From time to time, we require import licenses and general destination export licenses to
receive and deliver components of direct-to-home satellite TV systems. In addition, the delivery of satellites and
related technical information for the purpose of launch by a non-U.S. launch services provider is subject to strict
export control and prior approval requirements. We have contemplated the possibility of satellite launches by such
non-U.S. providers for our next planned satellites, and cannot be sure that the requisite approvals will be received.
PATENTS AND TRADEMARKS
We use a number of trademarks for our products and services, including “EchoStar,” “DISH Network,”
“America’s Top 40,” and others. We have registered some of these trademarks. We believe that those trademarks that
we have not registered are generally protected by common law and state unfair competition laws. Although we
believe that these trademarks are not essential to our business, we have taken affirmative legal steps to protect those
trademarks in the past and intend to actively protect these trademarks in the future.
We have been assigned certain patents for products and product components that we sell. We do not
consider any of these to be significant to our continuing operations. In addition, we have obtained and, although no
assurances can be given, expect to obtain licenses for certain patents necessary to the manufacture and sale of DBS
receivers and related components. We have been notified that certain features of the EchoStar receiver system
allegedly infringe on patents held by others, and that we therefore owe royalties. We are investigating these
allegations of infringement and, if appropriate, we would vigorously defend against any suit filed by the parties. We
do not know whether we would be able to successfully defend any suit, if brought, or if we would be able to obtain a
license for any patent that might be required.
EMPLOYEES
We had 3,815 employees at December 31, 1998, of which 3,750 worked in our domestic operations and 65
worked in our international operations. We are not a party to any collective bargaining agreement and generally
consider relations with our employees to be good.