Dish Network 2004 Annual Report Download - page 38

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30
the case to a Colorado court. The Court denied our motion to dismiss, but granted our motion to transfer. As a
result, the action was transferred to the United States District Court for the District of Colorado. Thereafter, we filed
a motion to dismiss the case in the Colorado court. The motion to dismiss is currently pending before the Court and
the case is currently in discovery.
Although the CCN Agreement specifically limits damages to $500,000, CCN initially sought $1.5 million. As this
case progressed, CCN initially increased the amount of its alleged damages to over $3.0 million and has recently
indicated that it is now seeking damages in excess of $15.0 million. As this is currently in early discovery it is not
possible to make a firm assessment of the probable outcome of the litigation or to determine the extent of any
potential liability or damages.
Vivendi
In January 2005, Vivendi Universal, S.A. (“Vivendi”), filed suit against EchoStar Communications Corporation in
the United States District Court for the Southern District of New York alleging that we have anticipatorily
repudiated or are in breach of an alleged agreement between EchoStar and Vivendi pursuant to which we are
allegedly required to broadcast a music-video channel provided by Vivendi. Vivendi’s complaint seeks injunctive
and declaratory relief, and damages in an unspecified amount. Vivendi has since filed a motion for a preliminary
injunction, in which it asks the Court to order us to broadcast the Vivendi music-video channel during the pendency
of the litigation and to pay Vivendi for the provision of its music-video channel. We intend to vigorously defend
this case. In the event that a Court determines that Vivendi is entitled to a preliminary injunction, we may be
required to broadcast the Vivendi music-video channel during the pendency of the litigation, which would impact
the bandwidth that we have available to broadcast other services. In the event that a Court ultimately determines
that we have a contractual obligation to broadcast the Vivendi music-video channel and that we are in breach of that
obligation, we may be required to broadcast the Vivendi music-video channel and be subject to substantial damages.
It is not possible to make a firm assessment of the probable outcome of the suit or to determine the extent of any
potential liability or damages.
Fox Sports Direct
During June 2004, Fox Sports Direct (“Fox”) sued us in the United States District Court Central District of
California for alleged breach of contract. During October 2004, we reached a settlement with Fox for an immaterial
amount.
Other
In addition to the above actions, we are subject to various other legal proceedings and claims which arise in the
ordinary course of business. In our opinion, the amount of ultimate liability with respect to any of these actions is
unlikely to materially affect our financial position, results of operations or liquidity.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No items were submitted to a vote of security holders during the fourth quarter of 2004.