Dish Network 2009 Annual Report Download - page 138

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-48
Because both we and EchoStar are defendants in the Tivo lawsuit, we and EchoStar are jointly and severally
liable to Tivo for any final damages and sanctions that may be awarded by the District Court. We have
determined that we are obligated under the agreements entered into in connection with the Spin-off to
indemnify EchoStar for substantially all liability arising from this lawsuit. EchoStar has agreed to contribute an
amount equal to its $5 million intellectual property liability limit under the Receiver Agreement. We and
EchoStar have further agreed that EchoStar’s $5 million contribution would not exhaust EchoStar’s liability to
us for other intellectual property claims that may arise under the Receiver Agreement. We and EchoStar also
agreed that we would each be entitled to joint ownership of, and a cross-license to use, any intellectual property
developed in connection with any potential new alternative technology.
Voom
On May 28, 2008, Voom HD Holdings (“Voom”) filed a complaint against us in New York Supreme Court.
The suit alleges breach of contract arising from our termination of the affiliation agreement we had with Voom
for the carriage of certain Voom HD channels on the DISH Network satellite television service. In January
2008, Voom sought a preliminary injunction to prevent us from terminating the agreement. The Court denied
Voom’s motion, finding, among other things, that Voom was not likely to prevail on the merits of its case.
Voom is claiming over $2.5 billion in damages. We intend to vigorously defend this case. We cannot predict
with any degree of certainty the outcome of the suit or determine the extent of any potential liability or
damages.
Other
In addition to the above actions, we are subject to various other legal proceedings and claims which arise in
the ordinary course of business, including among other things, disputes with programmers regarding fees. In
our opinion, the amount of ultimate liability with respect to any of these actions is unlikely to materially affect
our financial position, results of operations or liquidity.