Dish Network 2008 Annual Report Download - page 134

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-52
If we are unsuccessful in defending against Tivo’s motion for contempt or any subsequent claim that our
alternative technology infringes Tivo’s patent, we could be prohibited from distributing DVRs or could be
required to modify or eliminate certain user-friendly DVR features that we currently offer to consumers. In
that event we would be at a significant disadvantage to our competitors who could offer this functionality
and, while we would attempt to provide that functionality through other manufacturers, the adverse affect
on our business could be material. We could also have to pay substantial additional damages.
Voom
On May 28, 2008, Voom HD Holdings (“Voom”) filed a complaint against us in New York Supreme
Court. The suit alleges breach of contract arising from our termination of the affiliation agreement we had
with Voom for the carriage of certain Voom HD channels on DISH Network. In January 2008, Voom
sought a preliminary injunction to prevent us from terminating the agreement. The Court denied Voom’s
motion, finding, among other things, that Voom was not likely to prevail on the merits of its case. Voom is
claiming over $1.0 billion in damages. We intend to vigorously defend this case. We cannot predict with
any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages.
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, including among other things, disputes with programmers regarding fees.
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.
16. Segment Reporting
Financial Data by Business Unit
Statement of Financial Accounting Standards No. 131, “Disclosures About Segments of an Enterprise and
Related Information” (“SFAS 131”) establishes standards for reporting information about operating segments
in annual financial statements of public business enterprises and requires that those enterprises report selected
information about operating segments in interim financial reports issued to stockholders. Operating segments
are components of an enterprise about which separate financial information is available and regularly
evaluated by the chief operating decision maker(s) of an enterprise. Total assets by segment have not been
specified because the information is not available to the chief operating decision-maker. The “All Other”
category consists of revenue, expense and net income (loss) from other operating segments for which the
disclosure requirements of SFAS 131 do not apply. Based on the standards set forth in SFAS 131, following
the January 1, 2008 Spin-off discussed in Note 1, we operate in only one reportable segment, the DISH
Network segment, which provides a DBS subscription television service in the United States. Prior to 2008,
we had two reportable segments, DISH Network and EchoStar Technologies Corporation.