Dish Network 2009 Annual Report Download - page 135

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-45
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.
Personalized Media Communications
During 2008, Personalized Media Communications, Inc. filed suit against us, EchoStar and Motorola, Inc. in
the United States District Court for the Eastern District of Texas alleging infringement of United States Patent
Nos. 4,694,490, 5,109,414, 4,965,825, 5,233,654, 5,335,277, and 5,887,243, which relate to satellite signal
processing.
We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe any of
the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an
injunction that could require us to materially modify certain user-friendly 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.
Retailer Class Actions
During 2000, lawsuits were filed by retailers in Colorado state and federal courts attempting to certify
nationwide classes on behalf of certain of our retailers. The plaintiffs are requesting the Courts declare certain
provisions of, and changes to, alleged agreements between us and the retailers invalid and unenforceable, and
to award damages for lost incentives and payments, charge backs, and other compensation. We have asserted a
variety of counterclaims. The federal court action has been stayed during the pendency of the state court
action. We filed a motion for summary judgment on all counts and against all plaintiffs. The plaintiffs filed a
motion for additional time to conduct discovery to enable them to respond to our motion. The state court
granted limited discovery which ended during 2004. The plaintiffs claimed we did not provide adequate
disclosure during the discovery process. The state court agreed, and denied our motion for summary judgment
as a result. In April 2008, the state court granted plaintiff’s class certification motion and in January 2009, the
state court entered an order excluding certain evidence that we can present at trial based on the prior discovery
issues. The state court also denied plaintiffs’ request to dismiss our counterclaims. The final impact of the
court’s evidentiary ruling cannot be fully assessed at this time. In May 2009, plaintiffs filed a motion for
default judgment based on new allegations of discovery misconduct. We intend to vigorously defend this case.
We cannot predict with any degree of certainty the outcome of the lawsuit or determine the extent of any
potential liability or damages.
Technology Development Licensing
On January 22, 2009, Technology Development and Licensing LLC 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. 35, 952, which relates to certain favorite channel features. In July 2009, the Court granted our motion to
stay the case pending two re-examination petitions before the 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 require us to materially modify certain user-friendly 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.