Dish Network 2015 Annual Report Download - page 28

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procure the necessary launch or operational authorizations that accompany registration of the satellite. In some
jurisdictions, these authorizations are separate and distinct, with unique requirements, from the authorization to use a set
of frequencies to provide satellite services. There is no guarantee that we will be able to procure such authorizations
even if we already possess a frequency authorization.
Export Control Regulation
The delivery of satellites and related technical information for purposes of launch by foreign launch service providers is
subject to export control and prior approval requirements. We are required to obtain import and export licenses from the
United States government to receive and deliver certain components of direct-to-home satellite television systems. In
addition, the delivery of satellites and the supply of certain related ground control equipment, technical services and data,
and satellite communication/control services to destinations outside the United States are subject to export control and
prior approval requirements from the United States government (including prohibitions on the sharing of certain satellite-
related goods and services with China).
PATENTS AND OTHER INTELLECTUAL PROPERTY
Many entities, including some of our competitors, have or may in the future obtain patents and other intellectual property
rights that cover or affect products or services that we offer or that we may offer in the future. In general, if a court
determines that one or more of our products or services infringe intellectual property rights held by others, we may be
required to cease developing or marketing those products or services, to obtain licenses from the holders of the
intellectual property rights at a material cost, or to redesign those products or services in such a way as to avoid
infringing any patent claims. If those intellectual property rights are held by a competitor, we may be unable to obtain
the intellectual property rights at any price, which could adversely affect our competitive position.
We may not be aware of all intellectual property rights that our products or services may potentially infringe. In
addition, patent applications in the United States are confidential until the Patent and Trademark Office either publishes
the application or issues a patent (whichever arises first) and, accordingly, our products may infringe claims contained in
pending patent applications of which we are not aware. Further, the process of determining definitively whether a claim
of infringement is valid often involves expensive and protracted litigation, even if we are ultimately successful on the
merits.
We cannot estimate the extent to which we may be required in the future to obtain intellectual property licenses or the
availability and cost of any such licenses. Those costs, and their impact on our results of operations, could be material.
Damages in patent infringement cases can be substantial, and in certain circumstances can be trebled. To the extent that
we are required to pay unanticipated royalties to third parties, these increased costs of doing business could negatively
affect our liquidity and operating results. We are currently defending multiple patent infringement actions. We cannot
be certain the courts will conclude these companies do not own the rights they claim, that our products do not infringe on
these rights and/or that these rights are not valid. Further, we cannot be certain that we would be able to obtain licenses
from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be
able to redesign our products to avoid infringement.