Dish Network 2015 Annual Report Download - page 170

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-66
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. During August 2015, DISH Network L.L.C.
filed petitions before the United States Patent and Trademark Office challenging the validity of the 456 patent. Trial
is scheduled to commence on December 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.
TQ Delta, LLC
On July 17, 2015, TQ Delta, LLC (“TQ Delta”) filed a complaint against us and our wholly-owned subsidiaries
DISH DBS Corporation and DISH Network L.L.C. in the United States District Court for the District of Delaware.
The Complaint alleges infringement of United States Patent No. 6,961,369 (the “369 patent”), which is entitled
“System and Method for Scrambling the Phase of the Carriers in a Multicarrier Communications System”; United
States Patent No. 8,718,158 (the “158 patent”), which is entitled “System and Method for Scrambling the Phase of
the Carriers in a Multicarrier Communications System”; United States Patent No. 9,014,243 (the “243 patent”),
which is entitled “System and Method for Scrambling Using a Bit Scrambler and a Phase Scrambler”; United States
Patent No. 7,835,430 (the “430 patent”), which is entitled “Multicarrier Modulation Messaging for Frequency
Domain Received Idle Channel Noise Information”; United States Patent No. 8,238,412 (the “412 patent”), which is
entitled “Multicarrier Modulation Messaging for Power Level per Subchannel Information”; United States Patent
No. 8,432,956 (the “956 patent”), which is entitled “Multicarrier Modulation Messaging for Power Level per
Subchannel Information”; and United States Patent No. 8,611,404 (the “404 patent”), which is entitled “Multicarrier
Transmission System with Low Power Sleep Mode and Rapid-On Capability.” TQ Delta alleges that our satellite
TV service, Internet service, set-top boxes, gateways, routers, modems, adapters and networks that operate in
accordance with one or more Multimedia over Coax Alliance Standards infringe the asserted patents. On the same
day, in the same court, TQ Delta filed actions alleging infringement of the same patents against Comcast Corp., Cox
Communications, Inc., DirecTV, Time Warner Cable Inc. and Verizon Communications, Inc. TQ Delta is an entity
that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. Trial has
been set for November 13, 2017.
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.
Tse
On May 30, 2012, Ho Keung Tse filed a complaint against our wholly-owned subsidiary Blockbuster L.L.C., in the
United States District Court for the Eastern District of Texas, alleging infringement of United States Patent
No. 6,665,797 (the “797 patent”), which is entitled “Protection of Software Again [sic] Against Unauthorized Use.”
Mr. Tse is the named inventor on the 797 patent. On the same day that he sued Blockbuster, Mr. Tse filed a separate
action in the same court alleging infringement of the same patent against Google Inc.; Samsung
Telecommunications America, LLC and HTC America Inc. He also has earlier-filed litigation on the same patent
pending in the United States District Court for the Northern District of California against Sony Connect, Inc.;