Dish gets $97 million judgement

[Scott Greczkowski]

DISH NETWORK, ECHOSTAR AND NAGRASTAR RECEIVE $97 MILLION CONSENT JUDGMENT AGAINST FREETECH

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ENGLEWOOD, Colo. – Aug. 25, 2009 – Satellite TV provider DISH Network L.L.C., a subsidiary of DISH Network Corporation (NASDAQ: DISH), equipment supplier EchoStar Technologies L.L.C., a subsidiary of EchoStar Corporation (NASDAQ: SATS), and conditional access provider NagraStar L.L.C. announced today a significant victory in the fight against satellite television piracy.
On Aug. 19, 2009, the United States District Court for the Northern District of California entered a $97 million consent judgment and permanent injunction against Freetech, Inc., in a lawsuit accusing Freetech of selling Coolsat-branded devices used to pirate DISH Network’s pay-television system.*Judgment was also entered against three of Freetech’s corporate officers/owners in the aggregate amount of $9 million.
Freetech separately agreed to forfeit all of its liquid assets and inventory to DISH Network, to close down its business operations worldwide, to dissolve Freetech, and to never own, operate, participate in or benefit from any business trafficking in devices or technology that assists in the piracy of DISH Network programming or any other programming protected by NagraStar or its affiliates’ security systems (the corporate officers and owners also agreed to such restrictions).*If the defendants do not comply with those restrictions, plaintiffs will be able to immediately seek enforcement of the full judgment amount.*As part of the settlement, defendants also agreed to pay plaintiffs an undisclosed amount.*
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About DISH Network L.L.C.
DISH Network L.L.C., the nation’s HD leader, provides approximately 13.610 million satellite TV customers as of June 30, 2009 with the highest quality programming and technology at the best value, including the lowest all-digital price nationwide. Customers have access to hundreds of video and audio channels, the most HD channels, the most international channels, state-of-the-art interactive TV applications, and award-winning HD and DVR technology including 1080p Video on Demand and the ViP® 722 HD DVR, a CNET and PC Magazine “Editors’ Choice.” Visit Satellite Television - DISH Network - 1.888.825.2557.
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About EchoStar Technologies L.L.C.
EchoStar Technologies L.L.C. has 25 years of experience designing, developing and distributing advanced award-winning set-top boxes and related products for pay television providers. *Visit Echostar.com for more information.
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About NagraStar
NagraStar L.L.C. is a joint-venture between EchoStar Corporation (SATS) and the Kudelski Group (KUD.VX).* NagraStar supplies conditional access systems and security access devices and services to DISH Network and Bell ExpressVu Limited Partnership (operating as Bell TV).* NagraStar also offers these partners direct support, maintenance, security field investigations and implementation of new solutions in response to the rapid evolutions of the pay TV market.
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Media Contacts
Kathie Gonzalez, DISH Network, 720.514.5351, press@dishnetwork.com
Marc Lumpkin, EchoStar, 303.706.5236, marc.lumpkin@echostar.com
Teresa Barnhart, Nagrastar, 303.706.5735, teresa.barnhart@nagrastar.com
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*DISH NETWORK, ECHOSTAR AND NAGRASTAR RECEIVE $97 MILLION CONSENT JUDGMENT AGAINST FREETECH

*
ENGLEWOOD, Colo. – Aug. 25, 2009 – Satellite TV provider DISH Network L.L.C., a subsidiary of DISH Network Corporation (NASDAQ: DISH), equipment supplier EchoStar Technologies L.L.C., a subsidiary of EchoStar Corporation (NASDAQ: SATS), and conditional access provider NagraStar L.L.C. announced today a significant victory in the fight against satellite television piracy.
On Aug. 19, 2009, the United States District Court for the Northern District of California entered a $97 million consent judgment and permanent injunction against Freetech, Inc., in a lawsuit accusing Freetech of selling Coolsat-branded devices used to pirate DISH Network’s pay-television system.*Judgment was also entered against three of Freetech’s corporate officers/owners in the aggregate amount of $9 million.
Freetech separately agreed to forfeit all of its liquid assets and inventory to DISH Network, to close down its business operations worldwide, to dissolve Freetech, and to never own, operate, participate in or benefit from any business trafficking in devices or technology that assists in the piracy of DISH Network programming or any other programming protected by NagraStar or its affiliates’ security systems (the corporate officers and owners also agreed to such restrictions).*If the defendants do not comply with those restrictions, plaintiffs will be able to immediately seek enforcement of the full judgment amount.*As part of the settlement, defendants also agreed to pay plaintiffs an undisclosed amount.*
*
#* #* #
*
About DISH Network L.L.C.
DISH Network L.L.C., the nation’s HD leader, provides approximately 13.610 million satellite TV customers as of June 30, 2009 with the highest quality programming and technology at the best value, including the lowest all-digital price nationwide. Customers have access to hundreds of video and audio channels, the most HD channels, the most international channels, state-of-the-art interactive TV applications, and award-winning HD and DVR technology including 1080p Video on Demand and the ViP® 722 HD DVR, a CNET and PC Magazine “Editors’ Choice.” Visit Satellite Television - DISH Network - 1.888.825.2557.
*
About EchoStar Technologies L.L.C.
EchoStar Technologies L.L.C. has 25 years of experience designing, developing and distributing advanced award-winning set-top boxes and related products for pay television providers. *Visit Echostar.com for more information.
*
About NagraStar
NagraStar L.L.C. is a joint-venture between EchoStar Corporation (SATS) and the Kudelski Group (KUD.VX).* NagraStar supplies conditional access systems and security access devices and services to DISH Network and Bell ExpressVu Limited Partnership (operating as Bell TV).* NagraStar also offers these partners direct support, maintenance, security field investigations and implementation of new solutions in response to the rapid evolutions of the pay TV market.
*
Media Contacts
Kathie Gonzalez, DISH Network, 720.514.5351, press@dishnetwork.com
Marc Lumpkin, EchoStar, 303.706.5236, marc.lumpkin@echostar.com
Teresa Barnhart, Nagrastar, 303.706.5735, teresa.barnhart@nagrastar.com
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*

 

[Hemi 6.1]

WOW! Nice!

 

[--sexy-warlock--]

Should help pay for the Tivo lawsuit.

 

[teachsac]

Yeap. That's what I was thinking.

S~

 

[riffjim4069]

Should help pay for the Tivo lawsuit.

...yes, and perhaps a small down payment should VOOM win their lawsuit next year. Regardless, I cannot stand thieves (they gave true FTA'ers a bad name) and it sounds like FreeTech got what they deserved.

 

[riffjim4069]

Wow! I just noticed the judgment was issued on Aug 19th...why did it take so long for Dish Network to issue a press release?

 

[ehren]

use some of the $$$ for better HD PQ.

 

[Scott Greczkowski]

Wow! I just noticed the judgment was issued on Aug 19th...why did it take so long for Dish Network to issue a press release?

They needed the money to buy new Typewriters. Next lawsuit victory and they are considering buying real PC's!

 

[mike123abc]

Remember the headline says $97 million, how much is the operations worth. Dish may collect less than a million. Essentially the company just threw the keys to Dish and said it is now yours. Dish just got the assets of the company, since that was all the company had to pay the $97 million judgement.

 

[DishSubLA]

Remember the headline says $97 million, how much is the operations worth. Dish may collect less than a million. Essentially the company just threw the keys to Dish and said it is now yours. Dish just got the assets of the company, since that was all the company had to pay the $97 million judgement.

It doesn't matter. It really was not about getting cash. What Charlie really wanted was for Freetech to be vanquished and for this judgment to serve as a warning to any other companies who may be thinking of providing the means for people to obtain Dish Network services illegally. He just wants the practice stopped, so the money doesn't bleed out.

Do any of you remember back on 2002 or there abouts when Charlie publically accused Direct TV of deliberately being slow to address and fix its pirating problem in order to hurt Dish? I loved the days when Charlie would shoot from the lip. Personally, I think Charlie was right. Soon after, Direct TV did finally move to do an access card swap, but, man, there really were slow to get there after years of what looked like a tolerance of pirating.

 

[digiblur]

It doesn't matter. It really was not about getting cash. What Charlie really wanted was for Freetech to be vanquished and for this judgment to serve as a warning to any other companies who may be thinking of providing the means for people to obtain Dish Network services illegally. He just wants the practice stopped, so the money doesn't bleed out.

Do any of you remember back on 2002 or there abouts when Charlie publically accused Direct TV of deliberately being slow to address and fix its pirating problem in order to hurt Dish? I loved the days when Charlie would shoot from the lip. Personally, I think Charlie was right. Soon after, Direct TV did finally move to do an access card swap, but, man, there really were slow to get there after years of what looked like a tolerance of pirating.

And Dish wasn't slow? It took them like....7-8 years to finally get their piracy down to a very low volume. Google will show they are not at 100% yet.

 

[PHXHoward]

Nice! Glad to see something going Dish's way.

 

[Claude Greiner]

Dish really didn't get anything out of this financially, except for putting a dent on piracy and making this serve as an example to other FTA manufactures.

What did Charlie really get here? A warehouse full of crappy FTA receivers that he now has to pay to properly dispose of and make sure the equipment cannot find its way back into the market.

This lawsuit should have been filed years ago when we had the blue cards, and if that happened maybe we would not have had to replace the yellow cards.

 

[bobvick]

I didnt mean to advertise the "receivers used for stealing" I did not know that it was the only use they had, it sure seems that way though. Anway, I was just trying to make a point, that I wonder when Dish will go after these companies.
I did not know I was breaking the rules, sorry.

 

[digiblur]

Dish really didn't get anything out of this financially, except for putting a dent on piracy and making this serve as an example to other FTA manufactures.

What did Charlie really get here? A warehouse full of crappy FTA receivers that he now has to pay to properly dispose of and make sure the equipment cannot find its way back into the market.

This lawsuit should have been filed years ago when we had the blue cards, and if that happened maybe we would not have had to replace the yellow cards.

The only real way was to secure the signal... the companies would have just moved stuff around to a different country and/or something else would have popped up.

They haven't fully secured the signal due to the sharing crap, but they've done a damn good job so far. I used to over hear people openly talking about FTA, and of course several said it was legal since its in their backyard..lol...as of now, I haven't heard one person talk about it around town.

I never understood it...hell when Dish had the HD Absolute program open with the rebates/credits that no one could pass up, people were buying up the HD receivers and add in 8PSK boards like candy...spending over $400-$500 for that setup.

 

[DishSubLA]

Dish really didn't get anything out of this financially, except for putting a dent on piracy and making this serve as an example to other FTA manufactures.

What did Charlie really get here? A warehouse full of crappy FTA receivers that he now has to pay to properly dispose of and make sure the equipment cannot find its way back into the market.

This lawsuit should have been filed years ago when we had the blue cards, and if that happened maybe we would not have had to replace the yellow cards.

I feel comfortable in saying that our byzantine tax code will surely allow Charlie to write it off, so it probably won't be the problem you've described. Man, corporations can write off just about anything.

 

[Claude Greiner]

Yea, now that you think about it Charlie will probably write off all the crappy FTA receivers at over $100 each just like they do with leased equipment.

As far as the 8PSK boards, I was selling those for years on ebay and on my website to ligitiment paying customers who wanted to upgrade their model 6000's to get all the new HD channels. The day that someone figured out how to turn those boards into a hack, my sales blew up and I sold out all of my inventory in one day and Dish was sold out of them and you could no longer get them anymore.

 

[apollog]

Charlie will probably never seen that money, Freetech can file Chapter 9 or 13 and Charlie will be screwed again.

 

[KAB]

Charlie will probably never seen that money, Freetech can file Chapter 9 or 13 and Charlie will be screwed again.

Nah. Charlie always seems to land on his feet.

 

[lakebum431]

Charlie will probably never seen that money, Freetech can file Chapter 9 or 13 and Charlie will be screwed again.

Well Chapter 9 bankruptcy is bankruptcy for municipalities so I don't think that would help them much. And Chapter 13 is for individuals. So I think you are referring to Chapter 7 or 11?