Dish Network 2015 Annual Report Download - page 164

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
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Grecia alleges that we violate the 555 patent in connection with our digital rights management. Grecia dismissed his
action with prejudice on February 3, 2016.
On February 3, 2016, Grecia filed a new complaint against our wholly-owned subsidiary DISH Network L.L.C. in
the United States District Court for the Northern District of California, alleging infringement of United States Patent
No. 8,887,308 (the “308 patent”), which is entitled “Digital Cloud Access—PDMAS Part III,” on which Grecia is
also the named inventor. Grecia alleges that we violate the the 308 patent in connection with our DISH Anywhere
feature.
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.
The Hopper Litigation
On May 24, 2012, our wholly-owned subsidiary, DISH Network L.L.C., filed a lawsuit in the United States District
Court for the Southern District of New York against American Broadcasting Companies, Inc.; CBS Corporation;
Fox Entertainment Group, Inc.; Fox Television Holdings, Inc.; Fox Cable Network Services, L.L.C. and
NBCUniversal, LLC. In the lawsuit, we sought a declaratory judgment that we are not infringing any defendant’s
copyright, or breaching any defendant’s retransmission consent agreement, by virtue of the PrimeTime Anytime™
and AutoHop features of our Hopper set-top box. A consumer can use the PrimeTime Anytime feature, at his or her
option, to record certain primetime programs airing on ABC, CBS, Fox, and/or NBC up to every night, and to store
those recordings for up to eight days. A consumer can use the AutoHop feature, at his or her option, to watch
certain recordings that the subscriber made with our PrimeTime Anytime feature, commercial-free, if played back at
a certain point after the show’s original airing.
Later on May 24, 2012, (i) Fox Broadcasting Company; Twentieth Century Fox Film Corp. and Fox Television
Holdings, Inc. filed a lawsuit against us and DISH Network L.L.C. in the United States District Court for the Central
District of California, alleging that the PrimeTime Anytime feature, the AutoHop feature, as well as Slingbox
placeshifting functionality infringe their copyrights and breach their retransmission consent agreements, (ii) NBC
Studios LLC; Universal Network Television, LLC; Open 4 Business Productions LLC and NBCUniversal, LLC
filed a lawsuit against us and DISH Network L.L.C. in the United States District Court for the Central District of
California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights, and
(iii) CBS Broadcasting Inc.; CBS Studios Inc. and Survivor Productions LLC filed a lawsuit against us and DISH
Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime
Anytime feature and the AutoHop feature infringe their copyrights.
As a result of certain parties’ competing venue-related motions brought in both the New York and California
actions, and certain networks’ filing various counterclaims and amended complaints, the claims have proceeded in
the following venues: (1) the copyright and contract claims regarding the ABC and CBS parties in New York; and
(2) the copyright and contract claims regarding the Fox and NBC parties in California.
California Actions. The NBC plaintiffs and Fox plaintiffs filed amended complaints in their respective California
actions, adding copyright claims against EchoStar and EchoStar Technologies L.L.C., a wholly-owned subsidiary of
EchoStar. In addition, the Fox plaintiffs’ amended complaint added claims challenging the Hopper Transfers™
feature of our second-generation Hopper set-top box.
On November 7, 2012, the California court denied the Fox plaintiffs’ motion for a preliminary injunction to enjoin
the Hopper set-top box’s PrimeTime Anytime and AutoHop features, and the Fox plaintiffs appealed. On March 27,
2013, at the request of the parties, the Central District of California granted a stay of all proceedings in the action
brought by the NBC plaintiffs, pending resolution of the appeal by the Fox plaintiffs. On July 24, 2013, the United
States Court of Appeals for the Ninth Circuit affirmed the denial of the Fox plaintiffs’ motion for a preliminary
injunction as to the PrimeTime Anytime and AutoHop features. On August 7, 2013, the Fox plaintiffs filed a