Dish Network 2013 Annual Report Download - page 171

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-61
therein. On March 27, 2013, Premier International dismissed the action against us and the EchoStar entities with
prejudice, pursuant to a settlement under which we and the EchoStar entities made an immaterial payment in
exchange for a license to certain patents and patent applications.
Preservation Technologies, LLC
In December 2011, Preservation Technologies, LLC (“Preservation Technologies”) filed suit against us in the
United States District Court for the Central District of California. In the Operative Seventh Amended Complaint,
filed on March 22, 2013, Preservation Technologies also names Netflix, Inc., Hulu, LLC, AT&T Services, Inc.,
Cox Communications, Inc., Disney Online, American Broadcasting Companies, Inc., Yahoo! Inc., Wal-Mart
Stores, Inc., Vudu, Inc. and ESPN Internet Ventures as defendants. Preservation Technologies alleges that our
BLOCKBUSTER On Demand, DISH branded pay-TV and DISH Online services and our Hopper and Joey® set-
top boxes infringe United States Patent Nos. 5,813,014, 5,832,499, 6,092,080, 6,353,831, 6,574,638, 6,199,060,
5,832,495, 6,549,911, 6,212,527 and 6,477,537. The patents relate to digital libraries, the management of
multimedia assets and the cataloging of multimedia data. Preservation Technologies is an entity that seeks to
license an acquired patent portfolio without itself practicing any of the claims recited therein.
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 cause 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.
Ronald A. Katz Technology Licensing, L.P.
During 2007, Ronald A. Katz Technology Licensing, L.P. (“Katz”) filed a patent infringement action against our
wholly-owned subsidiary DISH Network L.L.C., in the United States District Court for the Northern District of
California. The suit originally alleged infringement of 19 patents owned by Katz. The patents relate to interactive
voice response, or IVR, technology. The case has been transferred and consolidated for pretrial purposes in the
United States District Court for the Central District of California by order of the Judicial Panel on Multidistrict
Litigation. Only four patents remain in the case against us, of which all are expired and two are subject to granted
reexamination proceedings before the United States Patent and Trademark Office.
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 cause 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.
Technology Development and Licensing L.L.C.
On January 22, 2009, Technology Development and Licensing L.L.C. (“TDL”) 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. Re. 35,952, which relates to certain favorite channel features. TDL is an entity that seeks to license an
acquired patent portfolio without itself practicing any of the claims recited therein. In July 2009, the Court
granted our motion to stay the case pending two reexamination petitions before the United States 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 cause 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.