Dish Network 2003 Annual Report Download - page 104

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–37
regulatory approvals. There can be no assurance that we will obtain these approvals or that the satellite will
ultimately be launched. It is our intent to use the capacity on this satellite to offer additional value-added services.
Future commitments related to this contingent satellite are included in the table above.
As a result of our recent agreements with fixed satellite service providers and for the construction of EchoStar X,
our obligations for payments related to satellites have increased substantially. In certain circumstances the dates on
which we are obligated to make these payments could be delayed. These amounts will increase when we commence
payments for the launch of EchoStar X, and would further increase to the extent we procure insurance for our
satellites or contract for the construction, launch or lease of additional satellites.
Purchase Obligations
Our 2004 purchase obligations primarily consist of binding purchase orders for EchoStar satellite receiver systems
and related equipment.
Programming Contracts
In the normal course of business, we have entered into numerous contracts to purchase programming content and
will continue to do so. These commitments are not included in the table above. The terms of our contracts typically
range from one to ten years and our payment obligations are fully contingent on the number of subscribers to which
we provide the respective content. Consequently, our programming expenses will to continue to increase to the extent
we are successful growing our subscriber base. Programming expenses are included in “Subscriber-related expenses”
in the accompanying consolidated statements of operations and comprehensive income (loss).
Rent Expense
Total rent expense for operating leases approximated $32.2 million, $17.9 million and $14.8 million in 2003, 2002
and 2001, respectively.
Patents and Intellectual Property
Many entities, including some of our competitors, now have and may in the future obtain patents and other intellectual
property rights that cover or affect products or services directly or indirectly related to those that we offer. We may not
be aware of all patents and other intellectual property rights that our products may potentially infringe. Damages in
patent infringement cases can include a tripling of actual damages in certain cases. Further, we cannot estimate the
extent to which we may be required in the future to obtain licenses with respect to patents held by others and the
availability and cost of any such licenses. Various parties have asserted patent and other intellectual property rights
with respect to components within our direct broadcast satellite system. We cannot be certain that these persons do not
own the rights they claim, that our products do not infringe on these rights, that we would be able to obtain licenses
from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be
able to redesign our products to avoid infringement.