Dish Network 2014 Annual Report Download - page 167

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-61
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.
Phoenix Licensing, L.L.C./LPL Licensing, L.L.C.
On October 17, 2014, Phoenix Licensing, L.L.C. and LPL Licensing, L.L.C. (together referred to as “Phoenix”)
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 Nos. 5,987,434 entitled
“Apparatus and Method for Transacting Marketing and Sales of Financial Products”; 7,890,366 entitled
“Personalized Communication Documents, System and Method for Preparing Same”; 8,352,317 entitled “System
for Facilitating Production of Variable Offer Communications”; 8,234,184 entitled “Automated Reply Generation
Direct Marketing System”; and 6,999,938 entitled “Automated Reply Generation Direct Marketing System”.
Phoenix alleges that we infringe the asserted patents by making and using products and services that generate
customized marketing materials. Phoenix is an entity that seeks to license a patent portfolio without itself practicing
any of the claims recited therein. Trial is set scheduled to commence on March 14, 2016.
We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe 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 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.
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.
Effective June 18, 2014, Preservation Technologies dismissed all of its claims against us with prejudice, pursuant to
a settlement agreement.
Qurio Holdings, Inc.
On September 26, 2014, Qurio Holdings, Inc. (“Qurio”) filed a complaint against us and our wholly-owned
subsidiary DISH Network L.L.C., in the United States District Court for the Northern District of Illinois, alleging
infringement of United States Patent No. 8,102,863 entitled “Highspeed WAN To Wireless LAN Gateway” and
United States Patent No. 7,787,904 entitled “Personal Area Network Having Media Player And Mobile Device
Controlling The Same”. On the same day, Qurio filed similar complaints against Comcast and DirecTV. On
November 13, 2014, Qurio filed a first amended complaint, which added a claim alleging infringement of United
States Patent No. 8,879,567 entitled “High-Speed WAN To Wireless LAN Gateway”. Qurio is an entity that seeks
to license a patent portfolio without itself practicing any of the claims recited therein. On February 9, 2015, the
Court granted DISH Network L.L.C.’s motion to transfer the case to the United States District Court for the
Northern District of California.