Dish Network 2013 Annual Report Download - page 54

44
44
presentations to viewers over a network, such as “a cable television network, an Internet or other computer network,
a broadcast television network, and/or a satellite system.” Custom Media 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 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.
Cyberfone Systems, LLC (f/k/a LVL Patent Group, LLC)
On September 15, 2011, LVL Patent Group, LLC filed a complaint against our wholly-owned subsidiary DISH
Network L.L.C., as well as EchoStar, EchoStar Technologies L.L.C., a wholly-owned subsidiary of EchoStar, and
DirecTV, in the United States District Court for the District of Delaware, alleging infringement of United States
Patent No. 6,044,382, which is entitled “Data Transaction Assembly Server.” DirecTV was dismissed from the case
on January 4, 2012. On July 12, 2012, Cyberfone Systems, LLC (f/k/a LVL Patent Group, LLC) filed the operative
second amended complaint making the same claim. On January 24, 2013, Cyberfone Systems, LLC voluntarily
dismissed the action against us and the EchoStar entities without prejudice.
Do Not Call Litigation
On March 25, 2009, our wholly-owned subsidiary DISH Network L.L.C. was sued in a civil action by the United
States Attorney General and several states in the United States District Court for the Central District of Illinois,
alleging violations of the Telephone Consumer Protection Act and Telephone Sales Rules, as well as analogous state
statutes and state consumer protection laws. The plaintiffs allege that we, directly and through certain independent
third-party retailers and their affiliates, committed certain telemarketing violations. On December 23, 2013, the
plaintiffs filed a motion for summary judgment, which indicated for the first time that the state plaintiffs are seeking
civil penalties and damages of approximately $270 million and that the federal plaintiff is seeking an unspecified
amount of civil penalties (which could substantially exceed the civil penalties and damages being sought by the state
plaintiffs). The plaintiffs are also seeking injunctive relief that if granted would, among other things, enjoin DISH
Network L.L.C., whether acting directly or indirectly through authorized telemarketers or independent third-party
retailers, from placing any outbound telemarketing calls to market or promote its goods or services for five years,
and enjoin DISH Network L.L.C. from accepting activations or sales from certain existing independent third-party
retailers and from certain new independent third-party retailers, except under certain circumstances. We have also
filed a motion for summary judgment, seeking dismissal of all claims.
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.
Dragon Intellectual Property, LLC
On December 20, 2013, Dragon Intellectual Property, LLC (“Dragon IP”) filed complaints against our wholly-
owned subsidiary DISH Network L.L.C., as well as Apple Inc., AT&T, Inc., Charter Communications, Inc.,
Comcast Corp., Cox Communications, Inc., DirecTV, Sirius XM Radio Inc., Time Warner Cable Inc. and Verizon
Communications, Inc., in the United States District Court for the District of Delaware, alleging infringement of
United States Patent No. 5,930,444 (the “444 patent”), which is entitled “Simultaneous Recording and Playback
Apparatus.” Dragon IP alleges that various of our DVR receivers infringe the 444 patent. Dragon IP 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 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.