Dish Network 2014 Annual Report Download - page 168

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-62
We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the
asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction
that could cause 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.
Ronald A. Katz Technology Licensing, L.P.
During 2007, Ronald A. Katz Technology Licensing, L.P. (“Katz”) filed a patent infringement action against our
wholly-owned subsidiary DISH Network L.L.C., in the United States District Court for the Northern District of
California. The suit originally alleged infringement of 19 patents owned by Katz. The patents relate to interactive
voice response, or IVR, technology. The case was transferred and consolidated for pretrial purposes in the United
States District Court for the Central District of California by order of the Judicial Panel on Multidistrict Litigation.
Ultimately, only four patents remained in the case against us, of which all were expired and two were subject to
granted reexamination proceedings before the United States Patent and Trademark Office. On November 19, 2014,
the action was dismissed with prejudice, pursuant to a settlement agreement between the parties.
Technology Development and Licensing L.L.C.
On January 22, 2009, Technology Development and Licensing L.L.C. (“TDL”) filed suit against us and EchoStar,
in the United States District Court for the Northern District of Illinois, alleging infringement of United States
Patent No. Re. 35,952, which relates to certain favorite channel features. TDL is an entity that seeks to license an
acquired patent portfolio without itself practicing any of the claims recited therein. The case has been stayed since
July 2009 pending two reexamination petitions before the United States Patent and Trademark Office.
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 cause 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.
TQ Beta LLC
On June 30, 2014, TQ Beta LLC (“TQ Beta”) filed a complaint against us; our wholly-owned subsidiaries DISH
DBS Corporation and DISH Network L.L.C; EchoStar; and EchoStar’s subsidiaries EchoStar Technologies L.L.C.,
Hughes Satellite Systems Corporation, and Sling Media Inc., in the United States District Court for the District of
Delaware. The Complaint alleges infringement of United States Patent No. 7,203,456 (the “456 patent”), which is
entitled “Method and Apparatus for Time and Space Domain Shifting of Broadcast Signals.” TQ Beta alleges that
our Hopper set-top boxes, ViP 722 and ViP 722k DVR devices, as well as our DISH Anywhere service and DISH
Anywhere mobile application, infringe the 456 patent. TQ Beta is an entity that seeks to license an acquired patent
portfolio without itself practicing any of the claims recited therein. Trial is scheduled to commence on January 12,
2016.
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.