EchoStar, NAB Dispute Heats Up

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http://biz.yahoo.com/ap/061201/echostar_lawsuit.html?.v=3

EchoStar, NAB Trade Barbs in Dispute Over Distant Network Broadcasts


ENGLEWOOD, Colo. (AP) -- EchoStar Communications Corp., operator of the Dish satellite television network, said the National Association of Broadcasters "bullies" customers, as the two entities traded pointed comments in a long-running dispute over EchoStar's offering of local broadcast stations out of market.


The latest round of jabs was sparked Wednesday when EchoStar announced it would provide satellite capacity to programming-services provider National Programming Service LLC.

The NAB said that deal violated a court-ordered injunction that prevents EchoStar from broadcasting what are known as distant networks.

"EchoStar demonstrates again its arrogant and flagrant contempt for the rule of law," the association said in a statement. "We're hopeful the courts recognize this latest stunt for what it is: a serial copyright abuser's refusal to comply with numerous court verdicts and federal statutes that preserve the enduring value of local broadcasting."

The injunction was issued in October as part of a ruling in a nine-year-old legal battle that found EchoStar had violated distant network rules. The law allows satellite customers in underserved, usually rural, markets to get broadcast networks from far away, but prevents, for example, a satellite operator from broadcasting the New York NBC affiliate in Baltimore.

The court ruling also voided a settlement among EchoStar and seven networks and their affiliates -- excluding News Corp.'s Fox.

In response to EchoStar's announcement Wednesday, the association filed a cease and desist order with the U.S. District Court for the Southern District of Florida in Fort Lauderdale, saying, "EchoStar is engaging in the transparent sham of arranging for a third party to do, with enormous technical and other assistance from EchoStar, precisely what the permanent injunction prohibits."

On Friday, EchoStar said the NAB "continues to bully consumers and the courts." The company said the association is led by Fox, Rupert Murdoch's media conglomerate that also controls DirecTV, which operates as a duopoly against EchoStar.

EchoStar said the NAB's "real intention is to deny customers their freedom of choice and leave Fox-owned DirecTV as a monopoly for distant networks."

In October, EchoStar said the court's ruling would affect about 800,000 of its 12.5 million subscribers and that it would provide free over-the-air antennas and "other alternatives" to those left without network programming by the decision.
 

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