Dish Network 2014 Annual Report Download - page 161

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-55
October 11, 2012, the New York State Supreme Court awarded ESPN $5 million in attorneys’ fees as the prevailing
party on both our claim and ESPN’s counterclaim. As a result, we recorded $5 million of “General and
administrative expenses” and increased our “Litigation accrual” to a total of $71 million related to this case as of
December 31, 2012. During the first quarter 2013, we paid $71 million to ESPN related to the counterclaim and
attorneys’ fees and $12 million for accrued interest. As a result of the parties’ settlement and release, no further
appeals are possible, and this matter is now concluded.
Garnet Digital, LLC
On September 9, 2013, Garnet Digital, LLC (“Garnet Digital”) filed a complaint against us and our wholly-owned
subsidiary DISH Network L.L.C., in the United States District Court for the Eastern District of Texas, alleging
infringement of United States Patent No. 5,379,421 (the “421 patent”), which is entitled “Interactive Terminal for
the Access of Remote Database Information.” The 421 patent relates to methods for accessing information from a
remote computerized database and related devices. On the same day, Garnet Digital filed similar complaints in
the same court against 15 other defendants, including AT&T Inc.; Comcast Corp.; DirecTV; TiVo, Inc. and
Verizon Communications, Inc. Garnet Digital is an entity that seeks to license an acquired patent portfolio
without itself practicing any of the claims recited therein. On July 30, 2014, the Court dismissed the claims
against us with prejudice.
The Hopper Litigation
On May 24, 2012, our wholly-owned subsidiary, DISH Network L.L.C., filed a lawsuit in the United States District
Court for the Southern District of New York against American Broadcasting Companies, Inc.; CBS Corporation;
Fox Entertainment Group, Inc.; Fox Television Holdings, Inc.; Fox Cable Network Services, L.L.C. and
NBCUniversal, LLC. In the lawsuit, we sought a declaratory judgment that we are not infringing any defendant’s
copyright, or breaching any defendant’s retransmission consent agreement, by virtue of the PrimeTime Anytime™
and AutoHop features of our Hopper set-top box. A consumer can use the PrimeTime Anytime feature, at his or her
option, to record certain primetime programs airing on ABC, CBS, Fox, and/or NBC up to every night, and to store
those recordings for up to eight days. A consumer can use the AutoHop feature, at his or her option, to watch
certain recordings that the subscriber made with our PrimeTime Anytime feature, commercial-free, if played back at
a certain point after the show’s original airing.
Later on May 24, 2012, (i) Fox Broadcasting Company; Twentieth Century Fox Film Corp. and Fox Television
Holdings, Inc. filed a lawsuit against us and DISH Network L.L.C. in the United States District Court for the
Central District of California, alleging that the PrimeTime Anytime feature, the AutoHop feature, as well as
Slingbox placeshifting functionality infringe their copyrights and breach their retransmission consent agreements,
(ii) NBC Studios LLC; Universal Network Television, LLC; Open 4 Business Productions LLC and NBCUniversal,
LLC filed a lawsuit against us and DISH Network L.L.C. in the United States District Court for the Central District
of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights, and
(iii) CBS Broadcasting Inc.; CBS Studios Inc. and Survivor Productions LLC filed a lawsuit against us and DISH
Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime
Anytime feature and the AutoHop feature infringe their copyrights.
As a result of certain parties’ competing venue-related motions brought in both the New York and California
actions, and certain networks’ filing various counterclaims and amended complaints, the claims have proceeded in
the following venues: (1) the copyright and contract claims regarding the ABC and CBS parties in New York; and
(2) the copyright and contract claims regarding the Fox and NBC parties in California.