Dish Network 2010 Annual Report Download - page 132

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-47
During 2006, we and EchoStar, together with NagraStar L.L.C., filed a Complaint for Declaratory
Judgment in the United States District Court for the District of Delaware against Finisar that asks the Court
to declare that we do not infringe, and have not infringed, any valid claim of the ‘505 patent. Finisar
brought counterclaims against us, EchoStar and NagraStar alleging that we infringed the ‘505 patent.
During April 2008, the Federal Circuit reversed the judgment against DirecTV and ordered a new trial. On
remand, the District Court granted summary judgment in favor of DirecTV and during January 2010, the
Federal Circuit affirmed the District Court’s grant of summary judgment, and dismissed the action with
prejudice. Finisar then agreed to dismiss its counterclaims against us, EchoStar and NagraStar without
prejudice. We also agreed to dismiss our Declaratory Judgment action without prejudice.
Ganas L.L.C.
During August 2010, Ganas, L.L.C. (“Ganas”) filed suit against DISH DBS Corporation, our indirect
wholly owned subsidiary, Sabre Holdings Corporation, SAP America, Inc., SAS Institute Inc., Scottrade,
Inc., TD Ameritrade, Inc., The Charles Schwab Corporation, Tivo Inc., Unicoi Systems Inc., Xerox
Corporation, Adobe Systems Inc., AOL Inc., Apple Inc., Axibase Corporation, DirecTV, E*Trade
Securities L.L.C., Exinda Networks, Fidelity Brokerage Services L.L.C., Firstrade Securities Inc., Hewlett-
Packard Company, iControl Inc., International Business Machines Corporation and JPMorgan Chase & Co.
in the United States District Court for the Eastern District of Texas alleging infringement of United States
Patent Nos. 7,136,913, 7,325,053, and 7,734,756. The patents relate to hypertext transfer protocol and
simple object access protocol. Ganas is an entity that seeks to license an acquired patent portfolio without
itself practicing any of the claims recited therein.
We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe
any of the asserted patents, we may be subject to substantial damages, which may include treble damages,
and/or an injunction that could require us to materially modify certain features that we currently offer to
consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent
of any potential liability or damages.
Katz Communications
During 2007, Ronald A. Katz Technology Licensing, L.P. (“Katz”) filed a patent infringement action
against us in the United States District Court for the Northern District of California. The suit alleges
infringement of 19 patents owned by Katz. The patents relate to interactive voice response, or IVR,
technology.
We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe
any of the asserted patents, we may be subject to substantial damages, which may include treble damages
and/or an injunction that could require us to materially modify certain user-friendly features that we
currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or
determine the extent of any potential liability or damages.
NorthPoint Technology
On July 2, 2009, NorthPoint Technology, Ltd. filed suit against us, EchoStar and DirecTV in the United
States District Court for the Western District of Texas alleging infringement of United States Patent No.
6,208,636 (the ‘636 patent). The ‘636 patent relates to the use of multiple low-noise block converter
feedhorns, or LNBFs, which are antennas used for satellite reception.
We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe
the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or
an injunction that could require us to materially modify certain features that we currently offer to
consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent
of any potential liability or damages.