Court Moves on More DirecTV/Pegasus Issues
A federal district court judge in Los Angeles dismissed litigation between DirecTV and Pegasus in their ongoing, years old court battle.
The decision does not affect a $51.5 million jury verdict entered in DirecTV's favor against Pegasus last month, an award which is pending a decision concerning additional interest of almost $13 million claimed by DirecTV. Judgment on that part of the verdict is expected in the near future, the satellite TV company said.
DirecTV also said the court dismissed a claim from Pegasus for monetary relief concerning an issue related to payment of launch fees by programming providers.
In a separate statement, Pegasus confirmed the federal court dismissed its claims against DirecTV, thereby terminating further proceedings between the companies before the district court. And a court document detailing the decision also confirmed the dismissal of lawsuits.
On the issue of access to satellites and DirecTV programming, the companies issued different responses to the court decision.
DirecTV said the court dismissed Pegasus' declaratory relief claims concerning DirecTV's contract with the National Rural Telecommunications Cooperative, a decision the company said reaffirms that Pegasus has no rights under that contract. The court confirmed that DirecTV and NRTC could modify their agreement at any time in writing, the satellite TV company said.
Earlier, DirecTV and NRTC agreed the term of their DBS distribution agreement, which entitles NRTC to distribute DirecTV programming, will end on the later of the date when the DirecTV 1 satellite (also known as DBS 1) reaches the end of its useful life or June 30, 2008. After termination of the agreement, which will end no later than June 30, 2008, DirecTV will have no further obligation through its contract with the NRTC to provide services to Pegasus, DirecTV said in a statement.
DirecTV added that the court didn't resolve its request for declaratory relief on the term of Pegasus' member agreement with NRTC. The court ruled that DirecTV did not have standing to bring the claim against Pegasus, but should have brought the claim against NRTC. Because NRTC and DirecTV have resolved their dispute regarding term, DirecTV said it believes further proceedings involving the NRTC are unnecessary.
In response, Pegasus said the court action dismissed DirecTV's claim that its right to exclusive distribution of DirecTV services will expire when DirecTV's first satellite is removed from service. Pegasus said it believes the term of its right to exclusive distribution of DirecTV in its rural territories is tied to the life of satellites that transmit DirecTV services, and it has estimated those satellites have sufficient capacity to remain in service until 2016 and beyond.
"In 1999, in a cynical attempt to limit our valuable rights and damage Pegasus, DirecTV initiated a claim against Pegasus in federal District Court in Los Angeles seeking a court ruling that the term of Pegasus' exclusive distribution rights was limited to only the first DirecTV satellite, DBS-1, and not other satellites that provide our exclusive services," said Pegasus Vice President for Communications Cheryl Crate. "The District Court has now dismissed this claim. The District Court's decision makes clear that DirecTV's cynical attempt over the last five years to persuade the District Court and the public that the term of our exclusive rights is limited to the life of DBS-1 has failed."
DirecTV/Pegasus Issues
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