DISH -VS- VOOM - A Settlement has been reached!

With regard to the TiVo v. Dish case, I was more correct than most people including Greg.

I was the one predicted a settlement when almost everyone said there would be no end.

I was the one pointed out the en banc panel actually invalidated the injunction, when everyone said no, they did not say that, but a few days later when they sent the case back to Judge Folsom, they did not reinstate the injunction.

Had the original en banc panel remained the same, Dish would have won, but in the final vote, they added two newly installed judges, who did not participate in the hearing, and who clearly had reason to sympathize with their own fellow Judge Folsom, voted to tip the case in TiVo's favor.

The dissenting judges were all experienced patent judges, they never backed off from their initial dissent. To the contrary, the two judges (out of three) who were against Dish, had to change their stance on the most important issue in order to hand a split decision.

In the end, Dish only had to pay TiVo a reasonable fee to continue to use TiVo's DVR technology for the next 7 years, they did not have to pay any past fees. Not because TiVo was stupid, but because TiVo knew if Dish continued to appeal, they would not be so lucky next time.

Why after the settlement, Dish's stock went up, TiVo's stock went down, and stayed low.

The reason I am pointing out all this is not trying to defend myself, but to demonstrate that, the analysts are not always right. You can claim victory when you in effect have lost.

TiVo lost that case, why else it's value had gone down after the case was over?

I am certainly not speculating on this case now, because I have not read any of the court papers. On the other hand, from the past case, I am reluctant to believe what the analysts are saying. In the TiVo case, they have proven that their stock performance evaluations were wrong, despite the fact they could claim they were right.
 
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Trial starts today...

Source

Dish, Cablevision haven't settled: Trial in NY state court starts Wednesday

AMC Networks and Dish are due in court this week, with jury selection starting Wednesday in lower Manhattan for a breach of contract trial. Opening arguments may start as early as Thursday with Cablevision chairman Charles Dolan and AMC chief Josh Sapan taking the stand. Proceedings could last three to four weeks. AMC has long maintained that the reason for the ongoing carriage dispute between the companies -- Dish yanked AMC Networks' AMC, Sundance, IFC and WeTV months ago -- is that Dish has been seeking to gain an advantage in the unrelated litigation.

As the court date looms, industry players are increasingly surprised the parties haven't settled, especially Dish. The satellite service could be on the hook for up to $2.5 billion plus another $1 billion in interest. And Dish was sanctioned by a judge in the case for destroying evidence, which may not sit well with a jury. "I'm scratching my head. If my clients were in this, I would have counseled a settlement," said one entertainment attorney. "My sense has been from the get-go that this is litigation strategy of digging in their heels to get some advantage. It still seems extremely likely they will settle." Wall Street thinks AMC, too, would be best served by putting the case to bed.

Full Story

Okay, so it looks as though Dolan (Cablevision) and Sapan (AMC) may be taking the stand later this week. Is a settlement still a possibility? I don't think these people like one another...
 
Another article on the Dish/Cablevision trial.
http://www.businessweek.com/news/2012-09-19/amc-s-2-dot-4-billion-trial-may-return-mad-men-to-dish
The root of Dish's defense:
The trial will revolve around the Voom contract and whether Cablevision spent enough money on the service after Dish agreed to carry the programming.

[h=2]Spending Requirement[/h]Dish said in court filings it terminated the contract because Cablevision didn’t spend the required $100 million a year on programming as required. AMC and Cablevision argued in their filings that an audit found Voom spent almost $103 million in 2006. That sum included corporate overhead expenses of at least $12 million, while the contract required the money to be spent on programming, according to Dish.

The legal issue boils down to a dispute over the meaning of what constitutes spending “on the service,” as described in the contract.
“Dish may have had buyer’s remorse and was looking for a pretext to get out,” Bagchi said. “But AMC could have been in effect using Dish to subsidize other programming.”
 
Ok it's been awhile I remember when we use to have Voom so someone do a refresher Dish bought them out then at some point pulled the plug on them. I guess Voom thinks they still should be on the air or they feel like they were not treated right or something.. Just don't remember what the fuss was all about.. I will have to read through the pdf when I get time..
 
There was no reason Voom would not meet the spend requirement since their compliance would bring in billions of easy money into the Dolan's coffers.

There is a reason: greed. Why spend $100M on programming when some clever accountant can just claim millions in "overhead", and you are making all those millions extra a year? That is still one thing that can come back to bite them in the rear.
 
Also, I'm not sure why some of you are so surprised there is no settlement. I doubt Cablevision would except one for anything less than what they are suing for. They are very confident, and are thus going for broke. They probably want a fat judgement to use as leverage for a settlement that adds the AMC networks back for a fat price that they can further use as leverage in contracts with DirecTV, Fios, Uverse, Comcast, and TWC.
 
From a subscriber standpoint, I would have liked Dish and AMC Networks to come up with a reasonable agreement for the four channels to return. However, from the same standpoint, I hope Dish comes out winning. I do not think that the subs should have to pay for this. Exactly what programming did they pay for for that large amount? AMC, We, IFC, and Sundance played some of the same programming like CSI: Miami on We and AMC along with lengthy commercial breaks (with the exception of Sundance most of the time) along with annoying advertising sometimes during programs that would take up half the screen.
 
If Dish loses and is ordered to pay anything, I just don't see them bringing AMC back. I think it would take a huge 85-90% reduction in the settlement for Dish to bring back AMC, otherwise Dish is going to pay and/or appeal and let AMC take the long term hit of no carriage on Dish.
 
There is a reason: greed. Why spend $100M on programming when some clever accountant can just claim millions in "overhead", and you are making all those millions extra a year? That is still one thing that can come back to bite them in the rear.
$12M of the $103M was "overhead. So, even if it was removed, Voom still spent $91M on programming. Not a small chunk of change.

According to the article, the contract stipulated they spend the $100M "on the service". That certainly does not mean only on programming. It seems like Charlie had grown sour on the deal, kind of a "buyer's remorse", and looked for something in the contract to get out of it. "On the service" suddenly came to mean "on programming".

If that isn't the case, and the contract was just worded poorly, then Dish's legal team borked up, and Dish is still on the hook for breach of contract. Deliberately destroying evidence doesn't help their case much, either.
 
$12M of the $103M was "overhead. So, even if it was removed, Voom still spent $91M on programming. Not a small chunk of change.

According to the article, the contract stipulated they spend the $100M "on the service". That certainly does not mean only on programming. It seems like Charlie had grown sour on the deal, kind of a "buyer's remorse", and looked for something in the contract to get out of it. "On the service" suddenly came to mean "on programming".

If that isn't the case, and the contract was just worded poorly, then Dish's legal team borked up, and Dish is still on the hook for breach of contract. Deliberately destroying evidence doesn't help their case much, either.

$12M/year for 15 years is $180 Million dollars. You think that saving that kind of dough might not interest to bigwigs at Cablevision?

As to what "on the service" means, that is a question of fact for this case. I certainly don't think it obviously includes overhead. Heck, the Voom-lovers on this board seem to think anything would qualify as overhead. There are varying items. I think the strongest argument will be on how Cablevision shared expenses were allocated to Voom.

In my opinion, the "service" refers to the service Dish was getting from Cablevision, i.e. the Voom channels in HD. So that would include programming, technology to support broadcasts, and a few employees, but not offices, non-Voom staff, corporate jets, and the like.

Dish doesn't have to prove that overhead wasn't included. They just have to prove that $5M or so was improperly allocated, and that gets Cablevision below the spend requirement
 
Well cablevision is good at wasting money!!! I can tell you for fact (don't know if they still do) for years they would remodel the corporate offices every 3 years. With everything going in the crusher, I mean doors, filing cabinets everything.
The doaln's could careless about saving money.

I hope this comes back to bite them.
More power to Charlie. :D
I also hope all this kills amc.
 
$12M of the $103M was "overhead. So, even if it was removed, Voom still spent $91M on programming.

True but (I hope) irrelevant. By Voom's argument, they could have spent only $12M on programming, and $91M on overhead, and Dish still has to pay. Isn't that absurd?
 
$12M of the $103M was "overhead. So, even if it was removed, Voom still spent $91M on programming. Not a small chunk of change.

According to the article, the contract stipulated they spend the $100M "on the service". That certainly does not mean only on programming. It seems like Charlie had grown sour on the deal, kind of a "buyer's remorse", and looked for something in the contract to get out of it. "On the service" suddenly came to mean "on programming".

If that isn't the case, and the contract was just worded poorly, then Dish's legal team borked up, and Dish is still on the hook for breach of contract. Deliberately destroying evidence doesn't help their case much, either.

If I remember correctly one of the issues was that Cablevision was just billing VOOM a percentage of CVC overhead that they thought should apply, not an itemized accounting. This was to cover offices, personnel working partly on VOOM, utilities, etc... Something along the lines of VOOM is X% of our business so it should cover X% of our overhead.
 
If I remember correctly one of the issues was that Cablevision was just billing VOOM a percentage of CVC overhead that they thought should apply, not an itemized accounting. This was to cover offices, personnel working partly on VOOM, utilities, etc... Something along the lines of VOOM is X% of our business so it should cover X% of our overhead.
If I were on a jury, that wouldn't fly with me unless the contract allowed it. I would need to see the actual overhead expenses attributed to VOOM.
 
Another factor is both parties cannot agree if VoomHD "the service" consisted of 15 or 21 channels since that too was not in the plain language of the affiliation agreement. As such, Voom contends they were only required to spend something like 85M on "the service" per year using a pro-rated formula detailed in the agreement. Thus, they claim to have have spent tens of millions more than was required. Dish claims Voom is out-to-lunch with their assertion.
 
True but (I hope) irrelevant. By Voom's argument, they could have spent only $12M on programming, and $91M on overhead, and Dish still has to pay. Isn't that absurd?
If they spent $91M out of $103M on overhead, that would be absurd. But, $12M out of $103M is less than 12%. That's pretty reasonable. Hc, most charities spend more than that.
 

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