Case 1:04-cv-00143-WLS Document 20-15                     --> Page 1 of 37                                                ...
C a s e 1:04-cv-00143-WLS Document 20-15                 --> Page 2 of 37engaged in a course of unlawful conduct so that i...
C a s e 1:04-cv-00143-WLS Document 20-15              --> Page 3 of 37                                               FACTS...
C a s e 1:04-cv-00143-WLS Document 20-15                    --> Page 4 of 372004). The causes of action in this case, the ...
C a s e 1:04-cv-00143-WLS Document 20-15                  --> Page 5 of 37of conducting activities" in Colorado. Scheuer v...
C a s e 1:04-cv-00143-WLS Document 20-15                --> Page 6 of 37which it specifically contracted and purchased, as...
C a s e 1:04-cv-00143-WLS Document 20-15                      --> Page 7 of 37added). The individual facts of this case de...
C a s e 1:04-cv-00143-WLS Document 20-15               --> Page 8 of 37                B.      Mediacoms tortious acts dir...
C a s e 1:04-cv-00143-WLS Document 20-15                --> Page 9 of 37       Mediacom attempts to refute jurisdiction by...
C a s e 1:04-cv-00143-WLS Document 20-15                    --> P a g e 10 of 37                 C.      This Courts asser...
C a s e 1:04-cv-00143-WLS Document 20-15                 --> P a g e 11 of 37intentional, and allegedly tortious, actions,...
C a s e 1:04-cv-00143-WLS Document 20-15                        --> P a g e 12 of 37of Colorado. (Def.s Mot. to Dismiss at...
C a s e 1:04-cv-00143-WLS Document 20-15                   --> P a g e 13 of 37with the state of Colorado." (Def.s Mot. to...
C a s e 1:04-cv-00143-WLS Document 20-15                      --> P a g e 14 of 37                                        ...
C a s e 1:04-cv-00143-WLS Document 20-15          --> P a g e 15 of 37                                 CERTIFICATE OF SERV...
C a s e 1:04-cv-00143-WLS   Document 20-15   — >   P a g e 16 of 37                       EXHIBIT A
C a s e 1:04-cv-00143-WLS Document 20-15                --> P a g e 1^ of 37IN T H E U N I T E D S T A T E S D I S T R I C...
C a s e 1:04-cv-00143-W^S Document 20-15                     --> P a g e 18sof 37         Johnny     Duran,      Account  ...
C a s e 1:04-cv-00143-WLS Document 20-15   --> P a g e 1$ of 37                   )                                    •  ...
C a s e 1:04-cv-00143-WI^S Document 20-15                                       --> P a g e 20xof 37                      ...
CO                                                                                             a-o                        ...
C a s e 1:04-cv-00143-WLS                 Document 20-15                    -->       Page 2^ of 37                       ...
C a s e 1:04-cv-00143-WLS Document 20-15                                                               --> P a g e 23, of ...
M7oo    *      e               cnl                               E 3                               -                      ...
C a s e 1:04-cv-00143-WLS Document 20-15                                                                  --> P a g e 25 o...
C a s e 1:04-cv-00143-WLS Document 20-15                                                   --> P a g e 2§ of 37           ...
C a s e 1:04-cv-00143-WLS Document 20-15   --> P a g e 27 of 37                     EXHIBIT B
C a s e 1:04-cv-00143-WLS Document 20-15                   --> P a g e 28 of 37                      IN T H E U N I T E D ...
C a s e 1:04-cv-00143-WLS Document 20-15                 --> P a g e 2^ of 37                            )                ...
C a s e 1:04-cv-00143-WLS Document 20-15               --> P a g e 30 of 37                            »Duran, M i c h a e...
C a s e 1:04-cv-00143-WLS Document 20-15   --> P a g e 31^ of                         EXHIBIT B
t a 8         u       u-       • c a s n   :04-W00143^WtSaiDbW/iYtent                                 20-15               ...
Gase-1:04=ev--<3Q^43-WL>S-"-E>OCTrment 2 0 - 1 5                                 ->         P a g e 3 3 of 3 7            ...
C a s e 1:04-cv-00143-Wfc.S          Document 20-15                               -->         P a g e 3 4 of 3 7          ...
Mediacom response to Dish Network (Motion to dismiss)
Mediacom response to Dish Network (Motion to dismiss)
Mediacom response to Dish Network (Motion to dismiss)
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Mediacom response to Dish Network (Motion to dismiss)

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Dish Network demands Jury Trial - Mediacom Theft Complaint

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Transcript of "Mediacom response to Dish Network (Motion to dismiss)"

  1. 1. Case 1:04-cv-00143-WLS Document 20-15 --> Page 1 of 37 v ..r : c ^ , : > 9 r»i 5° IN T H E U N I T E D S T A T E S D I S T R I C T C O U R T . . . .%H F O R T H E D I S T R I C T OF C O L O R A D O - CEP.Cl*Civil Action No. 0 4 - M - 0 6 6 4 (CBS)E C H O S T A R S A T E L L I T E L.L.C., a Colorado Limited Liability Corporation Plaintiff,v.M E D I A C O M C O M M U N I C A T I O N S C O R P O R A T I O N , a Delaware Corporation; and M C CG E O R G I A , a Delaware Corporation, d/b/a M F D I A C O M ; J O H N D O E S 1-100 Defendants. PLAINTIFF ECHOSTAR SATELLITE LLCS RESPONSE TO DEFENDANTS MOTION TO DISMISS PLAINTIFFS A M E N D E D COMPLAINT PURSUANT TO R U L E S 12(B)(2) A N D 12(B)(3), FED. R. CIV. P. O R T O T R A N S F E R P U R S U A N T T O 28 U . S . C . § 1406(a) Plaintiff EchoStar Satellite, LLC ("EchoStar" or " D I S H Network"), by and through itsattorneys, responds to Defendants, Mediacom C o m m u n i c a t i o n s Corporation and M C C Georgia,Motion to Dismiss P l a i n t i f f s Amended Complaint Pursuant to Rules 12(b)(2) and 12(b)(3), FederalRules of Civil Procedure or to Transfer Pursuant to 28 U.S.C. § 1406(a). In support thereof, Plaintiffresponds as follows: INTRODUCTION M e d i a c o m either could not or would not obtain the retransmission rights to broadcast localchannel W S B / A B C to its customers. Therefore, to c o m p e t e with D I S H Network, Mediacom
  2. 2. C a s e 1:04-cv-00143-WLS Document 20-15 --> Page 2 of 37engaged in a course of unlawful conduct so that it may steal the channel for which DISH Networkbargained and purchased the retransmission rights. Three Mediacom employees, including ChiefTechnician John Duran, entered into Residential Subscriber Agreements with DISH Network toobtain DISH Network programming. 1 Thereafter, M e d i a c o m s employees would remit checks toDISH Network each month printed on " M E D I A C O M C O M M U N I C A T I O N S C O R P O R A T I O N "checks to pay for its subscriptions. Once Mediacom obtained access to DISH Network channelW S B / A B C , it extracted the local channel, made it cable ready and retransmitted it to Mediacomcustomers. In fact, Mediacom advertised via the local Chamber of C o m m e r c e website and itsprogramming guide that it offered W S B / A B C as part of its channel line-up. Despite M e d i a c o m s claims, this is not a case about Mediacom having absolutely no contactswith the State of Colorado. T o the contrary, Mediacom directed its intentional, tortious conduct tothe state of Colorado to harm EchoStar. As such, Mediacom has availed itself of the long-armjurisdiction of the State of Colorado. Mediacoms unlawful conduct creates the requisite minimumcontacts needed for this Court to confer specific personal jurisdiction over Mediacom. Likewise,Mediacoms intentional, tortious actions, taken outside the forum, were expressly directed at causinga harmful effect within the forum state. Therefore, a sufficient nexus exists between Mediacom andColorado so as to satisfy due process. l Duc to its investigation, EchoStar learned the identity of M e d i a c o m s employees whoentered into the Residential Subscriber Agreements with EchoStar which prohibits theretransmission of programming. As such, EchoStar amended its Complaint to add a claim for breachof contract. 2
  3. 3. C a s e 1:04-cv-00143-WLS Document 20-15 --> Page 3 of 37 FACTS EchoStar Satellite LLC, is involved in the Direct-To-Home satellite television DBS (directBroadcast Satellite) business. Amended Complaint at 1|9. EchoStar is a Colorado corporation andmaintains its headquarters and principle place of business in Englewood, Colorado. AmendedComplaint at J . T o better serve its customers, EchoStar enters into Retransmission Agreementswith local network affiliates to provide ABC, NBC, CBS and F O X to subscribers in the appropriategeographic location. Amended Complaint at ^ 12. Mediacom, EchoStars competition, was eitherunwilling or unable to enter into Retransmission Agreements with these same affiliates. AmendedComplaint at 14-16. Therefore, Mediacom executives entered into three separate ResidentialCustomer Agreements with DISH Network, a Colorado corporation (attached hereto as Exhibit"B"). The company would then extract local channel W S B / A B C from the DISH Networksubscriptions, make it cable ready, and illegally retransmit the channel to its own customers.Amended Complaint at 1fl|l2-l4. In fact, throughout its course of unlawful conduct, Mediacomwould pay for its multiple DISH Network subscriptions by writing checks to DISH Network on" M E D I A C O M C O M M U N I C A T I O N S C O R P O R A T I O N " company checks, (attached hereto asExhibit "A"). D u e to M e d i a c o m s breach of contract and unlawful retransmission, EchoStar hassuffered the injury of Defendants tortious conduct in Colorado. Amended Complaint at 25. ARGUMENT AND AUTHORITIES I. Mediacom is subject to the specific personal jurisdiction of this Court. In a federal question case, where the defendant resides outside the forum state, federal courtsapply the forum states personal jurisdiction rules if the applicable federal statute does not providefor national service of process. Sunward Electronics, Inc., v. McDonald, 362 F.3d 17, 22 (2nd Cir. 3
  4. 4. C a s e 1:04-cv-00143-WLS Document 20-15 --> Page 4 of 372004). The causes of action in this case, the Lanham Act, the Digital Millennium Copyright Act and47 U.S.C. 605 d o not provide for national service of process; therefore, there are three ways in whichthis Court may obtain personal jurisdiction over defendants; (1) consent of the parties; (2) presencein the forum state; and (3)actions by the defendant which affect people in the forum state. Ruggieriv. General Well Service, Inc., 535 F. Supp. 525, 528 (D. Colo. 1982)(emphasis added). Further, theanalysis under the third possible method of obtaining personal jurisdiction over a defendant proceedsunder two separate inquiries; (1) whether the states long-arm statute provides for jurisdiction ofdefendants served outside of the forum state, and (2) whether such jurisdiction is proper under theDue Process Clause of the Fourteenth Amendment. See Schocket v. Classic Auto Sales, Inc., 832P.2d 233, 235 (Colo. 1992). A. Mediacom purposefully directed its intentional and tortious business activities toward the state of Colorado. Under the first inquiry, the Colorado long-arm statute was intended to extend the personaljurisdiction of Colorados courts to their maximum limits permissible under the United States andColorado Constitutions. Keefe v. Kirschenbaum & Kirschenbaum, P.C., 40 P.3d 1267, 1270(Colo.2002). Therefore, Colorados long-arm statute permits the jurisdiction of Colorado courts toextend to causes of action arising from a nonresident defendants transaction of business within thestate or the commission of a tortious act within the state. See C.R.S. § 13-1 -124( 1 )(a)-(b) (emphasisadded). To be subject to long-arm statute jurisdiction, a nonresident defendant must have minimumcontacts with Colorado or commit some act by which it "purposefully avails itself of the privilege 4
  5. 5. C a s e 1:04-cv-00143-WLS Document 20-15 --> Page 5 of 37of conducting activities" in Colorado. Scheuer v. Dist. Court, 684 P.2d 249,251 (Colo. 1984)(quotingHanson v. Denkla,357 U.S. 235, 253, 78 S.Ct. 1228, 1240 (1958). To prove long-arm jurisdictionexists, a plaintiff seeking relief under the statute must allege facts to support a reasonable inferencethat the nonresident defendant has engaged in conduct subjecting the nonresident to personaljurisdiction. Keefe v. Kirschenbaum & Kirschenbaum, P.C., 4 0 P.3d 1 2 6 7 , 1 2 7 0 (Colo.2002); In reParental Responsibilities ofH.Z.G77 P.3d 848, 851 (Colo.App. 2003). Furthermore, when theparties have not conducted discovery, the plaintiff need only to make a prima facie showing that thedefendants were subject to personal jurisdiction. Id. at 1347; Graphic Controls Corp. v. Utah Med.Prods., 149 F.3d 1382,1385 (Fcd.Cir. 1998). The pleadings and affidavits arc to be construed in thelight most favorable to the plaintiff. Id. Further, long-arm jurisdiction may be exercised over a non-resident defendant if defendants tortious act causes injury in Colorado even though such an act wascommitted in a foreign state. Von Palffy-Erdoed v. Bugescu, 708 P.2d 816, 818 (Colo.App. 1985).Thereafter, threshold jurisdiction is established where tortious conduct initiated in another statecauses injury in Colorado and where requiring a defendant to appear in this state would be consistentwith due process of law. D&D Fuller CATV Constr., Inc. v. Pace, 780 P.2d 520, 524 (Colo. 1989). 2 In this case, Mediacom engaged in an intentional and unlawful course of action to stealW S B / A B C from EchoStar for its own economic gain. In turn, EchoStar w a s deprived of a right for 2 Despite M e d i a c o m s contention that D&D Fuller CATV Constr., Inc. v. Pace is notapplicable because the case does not specifically deal with cable television, D&D remains anauthoritative guide to Colorados assessment of a fact-specific personal jurisdiction inquiry in lightof an out-of-state defendants tortious conduct; in this case, M e d i a c o m s unlawful retransmissionof EchoStars programming. 780 P.2d 520, 525 (Colo. 1989). 5
  6. 6. C a s e 1:04-cv-00143-WLS Document 20-15 --> Page 6 of 37which it specifically contracted and purchased, as well as losing current and potential subscribersto Mediacom. M e d i a c o m s activity constitutes a tortious act within the state of Colorado pursuantto Colorados long-arm statute. See C.R.S. § 13-1 -124( 1 )(a)-(b). Even a single contact with the stateis sufficient to sustain long-arm jurisdiction where the cause of action arose out of that contact.Marquest Medical Products, Inc. v. EMDE Corporation, 1980, 496 F.Supp. 1242, 1248(D.Colo. 1980). Further, Colorados long-arm statute, providing for personal jurisdiction overdefendants committing tortious acts within the state, is violated when there is tortious action inanother state causing injury in Colorado. Classic Auto Sales, Inc. v. Schocket, 832 P.2d 233,235-36(Colo. 1992). Encore Productions, Inc. v. Promise Keepers, 53 F.Supp.2d 1101, 1114(D.Colo. 1999); see also National Business Brokers, Ltd. v. Jim Williamson Productions, Inc., 115F.Supp.2d 1250, 1255 (D.Colo.2000). In this case, Mediacom contends that personal jurisdiction isimproper because its tortious acts took place in the State of Georgia. (Def.s Mot. to Dismiss at 5).However, under the Colorado long-arm statute, the location of M e d i a c o m s tortious acts are notdeterminative of jurisdiction when M e d i a c o m s unlawful conduct undoubtedly caused injury toEchoStar in Colorado. See Id. C.R.S. § 13-l-124(l)(a)-(b). Mediacom relies heavily on the facts of Encore Productions, Inc. v. Promise Keepers, 53F.Supp.2d 1101, 1114 (D.Colo. 1999), in an attempt to prove that it docs not maintain an office,property or telephone listings in Colorado. (Dcf.s Mot. at 7). However, whether a non-resident hasthe requisite minimum contacts to establish personal jurisdiction either through the exercise ofspecific or general jurisdiction must be evaluated on thefacts of each case. National Union Fire Ins.Comp. of Pittsburgh, P.A. v. Kozeny, 115 F.Supp.2d 1231, 1235-36 (D.Colo. 2000)(emphasis 6
  7. 7. C a s e 1:04-cv-00143-WLS Document 20-15 --> Page 7 of 37added). The individual facts of this case detail that Mediacom did not simply "unlawfully intercept"EchoStars local channel WSB/ABC. (Def.s Mot. to Dismiss at 3). Rather, Mediacomsystematically entered into and breached three separate subscriber agreements with DISH Networkin order to unlawfully retransmit the local programming 3 . (Exhibit "B"). Upon investigation,EchoStar discovered that Mediacom issued checks each month to DISH Network from MediacomsChief Technician, John Duran. In addition, two other subscriber accounts were registered at thesame Mediacom address as Mr. Duran. (Exhibit "B"). M e d i a c o m s checks remitted to DISHNetwork were issued by " M E D I A C O M C O M M U N I C A T I O N S C O R P O R A T I O N " . (Exhibit "A").While fervently refuting jurisdiction, Mediacom makes absolutely no mention of the fact that itsemployees issued checks to DISH Network on Parent Company checks. The fact that Mediacomobtained programming only to unlawfully redistribute it was to EchoStars detriment and created aharm in the state of Colorado. See Encore Productions, Inc. v. Promise Keepers, 53 F.Supp.2d at1114 (D.Colo. 1999). Therefore, threshold jurisdiction is satisfied where M e d i a c o m s tortiousconduct initiated in Georgia caused injury to EchoStar in Colorado. D&D Fuller CATV Constr., Inc.v. Pace, 780 P.2d 520, 524 (Colo.1989); C.R.S. § 1 3 - M 2 4 ( l ) ( a ) - ( b ) . 3 The EchoStar Residential Customer Agreement provides: "You agree that services will notbe viewed outside your private residence. You are permitted to exhibit the Services solely in yourprivate residence and not in any other areas. The Services may not be rebroadcast, transmitted,recorded or performed, nor may admission be charged for listening to or viewing and Servicesprovided by us." (Exhibit "B")(emphasis added). 7
  8. 8. C a s e 1:04-cv-00143-WLS Document 20-15 --> Page 8 of 37 B. Mediacoms tortious acts directed at EchoStar in the state of Colorado establish the requisite minimum contacts needed for this Court to confer specific personal jurisdiction over Mediacom. After determining whether the requirements of the long-arm statute have been met, the courtmust separately determine whether a defendant has the requisite minimum contacts to satisfy dueprocess. See Intl Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158 (1945). Theminimum contacts standard may be satisfied in either of two w a y s - general jurisdiction or specificjurisdiction. SeeKuenzle v. HTMSport-UndFreizeitgerate AG, 102 F.3d 4 5 3 , 4 5 5 (10th Cir. 1996).The district courts duty is the same in exercising either general or specific jurisdiction: it mustguarantee that the exercise of jurisdiction "does not offend traditional notions of fair play andsubstantial justice." World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 292, 100 S.Ct. 559,564 (1980) (quoting Intl Shoe, 326 U.S. at 316, 66 S.Ct. 154). Moreover, specific personaljurisdiction may be based on activities that arise out of or relate to the cause of action and can existeven if the defendants contacts are isolated or sporadic. Burger King Corp. v. Rudzewicz, 471 U.S.462, 472-73, 105 S.Ct. 2174 (1985). This Court has specific personal jurisdiction over Defendants based upon their tortiouscontacts with the State of Colorado. In fact, EchoStar specifically alleges in its Amended Complaintthat, "EchoStar has suffered damage felt in the state of Colorado because Defendants obtainedsubscriptions to DISH Network programming, extracted local channel W S B / A B C and rebroadcastEchoStars signal in a manner that was not authorized by EchoStar as well as breached all threeResidential Customer Agreements with EchoStar." Amended Compl. at H 25. 8
  9. 9. C a s e 1:04-cv-00143-WLS Document 20-15 --> Page 9 of 37 Mediacom attempts to refute jurisdiction by asserting that a contract, alone, does not conferjurisdiction. (Def.s Mot. to Dismiss at 7). However, M e d i a c o m s argument is misguided asMediacom performed numerous other unlawful and tortious acts in addition to breaching theResidential Customer Agreement Amended Complaint 25. Mediacom intentionally andpurposefully entered into and breached agreements with EchoStar only to facilitate its theft of DISHNetwork programming from Colorado. Moreover, when an individual defendant has expressly andintentionally aimed his conduct at the forum state, with the effect of injuring a plaintiff with itsprinciple place of business in that state, the defendant is subject to jurisdiction there. Carrot BunchCo. Inc., v. Computer Friends, Inc., 218 F.Supp.2d 820, 826 (N.D.Tex.2002). In Carrot Bunch, aLanham Act case, the Federal District Court in Texas had specific personal jurisdiction over a non-resident infringer who intentionally directed his tortious activities toward the forum state byregistering, using and maintaining certain domain names with the knowledge that his actions wouldlikely injure the trade name and trademark holder in Texas. Id. at 826. As in this case, Mediacomsubscribed to EchoStar programming, accepted and wrote company checks for such programmingwith the knowledge that its theft and retransmission of W S B / A B C would likely injure EchoStar inthe State of Colorado. See id. Mediacom chartered a course of purposeful conduct to unlawfully useand retransmit EchoStars programming. Consequently, Mediacom has established the requisiteminium contacts with Colorado because EchoStars injuries arise out of and relate to M e d i a c o m spurposeful contact with the state. 9
  10. 10. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 10 of 37 C. This Courts assertion of jurisdiction over M e d i a c o m comports with notions of fair play and substantial justice. Due process, the third and final jurisdictional inquiry, requires that individuals have fairwarning that a particular activity may subject them to the jurisdiction of another state. They have fairwarning when their conduct and connection with the forum state are such that they should reasonablyanticipate being haled into court there. Keefe v. Kirschenbaum & Kirschenbaum, P. C., 40 P.3d 1267,1270-71 (Colo.2002). In determining whether a particular exercise of state-court jurisdiction isconsistent with due process, the inquiry must focus on "the relationship among the defendant, theforum, and the litigation." Rush v. Savchuk, 444 U.S. 320, 3 2 7 , 1 0 0 S.Ct. 571, 577(1980) (quotingShaffer v. Heitner, 433 U.S. 186, 204, 97 S.Ct. 2569, 2579 (1977)). In appropriate circumstances,however, a court may conduct an abbreviated minimum contacts analysis when the commission ofa tort forms the basis of personal jurisdiction. In D & D Fuller the Colorado Supreme courtobserved: Frequently, the commission of a tort, in itself, creates a sufficient nexus between the defendant and the state so as to satisfy the due process inquiry. In such cases there is no need to further engage in a minimum contacts analysis, because the defendant is so connected with the forum state that traditional notions of fair play and substantial justice are not offended by the states exercise of jurisdiction....D&D Fuller CATV Constr., Inc. v. Pace, 780 P.2d 520, 524 (Colo. 1989). The United States Supreme Court has also addressed the issue of what contacts are necessaryto satisfy due process in the context of an intentional tort. In Calder v. Jones, 465 U.S. 7 8 3 , 7 8 9 , 1 0 4S.Ct. 1482, 1487 (1984), the Court approved an "effects" test and held that where a defendants 10
  11. 11. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 11 of 37intentional, and allegedly tortious, actions, taken outside the forum, are expressly directed at causinga harmful effect within the forum state, a sufficient nexus exists between the defendant and the stateso as to satisfy due process. See D&D Fuller CATV Constr., Inc. v. Pace, 780 P.2d 520, 524(Colo. 1989). EchoStars injuries arise out of and relate to M e d i a c o m s activities that were directed atEchoStar in Colorado. Id. Therefore, Mediacom had fair warning that its breach of contract and theftof programming from EchoStar, causing harm in the State of Colorado, were such that Mediacomshould reasonably anticipate being haled into court there. See Keefe v. Kirschenbaum &Kirschenbaum, P.C., 4 0 P.3d 1267,1270-71 (Colo.2002). In fact, pursuant to the Calder effects test,Mediacoms intentional and tortious actions, although performed in Georgia, were expresslydirected at causing a harmful effect within Colorado; therefore, a sufficient nexus exists betweenMediacom and Colorado so as to satisfy due process. Calder v. Jones, 465 U.S. 7 8 3 , 1 0 4 S.Ct. 1482,79 (1984). It flies in the face of substantial justice that Mediacom should systematically steal fromEchoStar only to demand the luxury of its preferred forum. II. Colorado is the proper venue for this case, and transfer to the Middle District of Georgia would impede the interests of justice. The burden of establishing that a suit should be transferred from one district to another isupon the movants, and unless the evidence and circumstances of the case are strongly in favor of thetransfer, the p l a i n t i f f s choice of forum should not be disturbed. Texas Sulphur Company v. Ritter,371 F.2d 145, 147 (10th Cir.1967). As is jurisdiction, venue is proper in Colorado. Mediacom rallies for a change of venue basedupon the argument that it did not actually commit its unlawful and tortious conduct while in the state 11
  12. 12. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 12 of 37of Colorado. (Def.s Mot. to Dismiss at 10). A s explained above, as well as in EchoStars AmendedComplaint, Mediacom need not be present in the state to harm EchoStar in Colorado. AmendedComplaint at 4-8, 25; See Calder v. Jones, 465 U.S. 7 8 3 , 1 0 4 S.Ct. 1482, 79 (1984). Therefore,Mediacoms reliance on 28 U.S.C. 1406(a) is improper and without legal foundation. Furthermore, Mediacom does not meet the stringent burden required for disrupting thep l a i n t i f f s choice o f v e n u e . See Texas Sulphur Company v. Ritter, 371 F.2d 145,147 (10th Cir. 1967).M e d i a c o m s only argument for a change of venue is that it will be unable to compel third-partywitnesses to testify in Colorado. (Def.s Mot. to Dismiss at 11). However, according to theDeclaration of Bruce Gluckman these possible witnesses are former employees of Mediacom.(Gluckman Decl. at 4). Mediacom states that it is "likely" to call these former employees aswitnesses; however, it makes no claim that these witnesses will still be located within the subpoenapower of the court. Id. in view of the heavy burden imposed upon a party moving for transfer of acivil action from one district to another, the factual content of a supporting affidavit is veryimportant, and an affidavit containing only conclusions is insufficient. Texas Sulphur Company v.Rittery31 F.2d 1 4 5 , 1 4 7 (10th Cir. 1967). It operates against the interests o f j u s t i c e that Mediacomsteals a valuable commodity from EchoStar but demands the luxury of its own forum. A s Mediacomhas not met its burden, venue remains proper in Colorado. III. Mediacoms Request for costs is procedurally incorrect and without legal merit. Mediacom knew or should have known that Mediacom employees contracted with EchoStar,wrote monthly checks to EchoStar, and damaged EchoStar in the State of Colorado. (Exhibits " A "and "B"). Despite this knowledge, Mediacom represents to this Court that it has "had no contact 12
  13. 13. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 13 of 37with the state of Colorado." (Def.s Mot. to Dismiss at 5). Further, Mediacom improperly seeks anaward of costs, contending that EchoStar made an obvious error by filing in the wrong court.(Def.s Mot. to Dismiss at 11). To support its request, Mediacom relies on an award of costsassessed against plaintiffs in Nichols v. G.D. Searle & Co., 991 F.2d 1195, 1201 (4th Cir. 1993).However, M e d i a c o m s reliance on Nichols is mispiaced because that case does not apply a blanketrule that errors in determining jurisdiction and venue naturally yield costs to the prevailing party.Rather, in Nichols, Plaintiffs were 116 women w h o filed a products liability case in the state ofMaryland; however, none of the plaintiffs resided in Maryland, and none of their causes of actionarose there. Id. at 1198. As stated, EchoStar is a Colorado corporation, with its principle place of business inColorado and was damaged by M e d i a c o m s intentional, tortious conduct directed at citizens of theforum state. Amended Complaint at ffll, 25. Mediacom has made no showing otherwise. As evidenced by Defendants Motion to Dismiss and the letter attached thereto from R. BruceBeckner, Mediacom Counsel, to Courtney Tigner, EchoStar Counsel, no Rule 11 Motion was servedor filed, nor w a s a 21-day safe harbor period initiated by Mediacom. (Def.s Mot. to Dismiss at 11).Therefore, Mediacom improperly seeks sanctions against EchoStars counsel without use of thenecessary procedural mechanism. See Fed. R. Civ. P. 11. EchoStar has met its prima facie burdenfor showing that both jurisdiction and venue are proper in the District of Colorado. Accordingly,M e d i a c o m s attempt to collect costs for its Motion to Dismiss is procedurally incorrect, without legalmerit and should be denied.
  14. 14. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 14 of 37 CONCLUSION EchoStar respectfully requests that this Court deny M e d i a c o m s Motion to Dismiss P l a i n t i f f sAmended Complaint pursuant to Fed. R. Civ. P. 12(b)(2) and 12(b)(3) or to transfer pursuant to 28U.S.C. § 1406(a) to the middle District o f Georgia, Thomasville Division, and that the Court denyM e d i a c o m s improper request for costs. Respectfully submitted this 9 lh da> Todd A. Jansen Cockrell, Quinn & Creighton Mile High Center 1700 Broadway, Suite 1516 Denver, Colorado 80290 (303) 860-7140 (303) 860-7344 (fax) T. W A D E W E L C H & A S S O C I A T E S Courtney L. Tigner Richard Olsen 2401 Fountainview, Suite 700 Houston, T e x a s 77057 (713) 9 5 2 - 4 3 3 4 (713) 952-4994 (fax) ATTORNEYS FOR PLAINTIFF ECHOSTAR SATELLITE LLCP l a i n t i f f s Address:David Moskowitz, Esq.General Counsel and Vice PresidentEchoStar Satellite Corporation9601 South Meridian Blvd.Englewood, C O 80112 14
  15. 15. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 15 of 37 CERTIFICATE OF SERVICE I certify that a true and correct copy of the foregoing document was served on August 9,2004, via U.S. Mail, postage prepaid, upon the following counsel in accordance with the FederalRules o f Civil Procedure:David Fine, Esq.Walter G a m s e y , Jr., Esq.K E L L Y H A G L U N D G A R N S E Y & K A H N LLC1441 Eighteenth Street, Suite 300Denver, Colorado 80202-1255R. Bruce Beckner, Esq.F L E I S C H M A N A N D W A L S H , LLP1919 Pennsylvania Avenue, N.W., Suite 600Washington, D.C. 20006 TodcTA^Janse 15
  16. 16. C a s e 1:04-cv-00143-WLS Document 20-15 — > P a g e 16 of 37 EXHIBIT A
  17. 17. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 1^ of 37IN T H E U N I T E D S T A T E S D I S T R I C T C O U R TFOR THE DISTRICT OF COLORADOCivil Action No. 04-M-0664 (CBS)E C H O S T A R S A T E L L I T E L.L.C., a Colorado Limited Liability Corporation Plaintiff,M E D I A C O M C O M M U N I C A T I O N S C O R P O R A T I O N , a Delaware Corporation;and M C C G E O R G I A , a Delaware Corporation, d/b/a M E D I A C O M ; J O H N D O E S1-100 Defendants. DECLARATION OF SHANNON PICCHIONE1. M y name is Shannon Picchione. I have personal knowledge of the events and facts discussed herein and they are true and correct. I am over 18 years o f age, 1 h a v e never been convicted of a felony, and 1 am competent in all respects to make this declaration.2. 1 am employed b y EchoStar Satellite L L C ("EchoStar") as a Director of Accounting in the D I S H Network Customer Management Operations division, located at 9601 South Meridian Blvd., Englewood, Colorado 80112.3. Attached hereto as Exhibit " A " are true and correct copies o f checks that were written b y M e d i a c o m Communications Corporation to purchase three separate D I S H Network subscriptions for D I S H Network programming. The three M e d i a c o m accounts are registered to Michael Coutu, Account # 909111859051;
  18. 18. C a s e 1:04-cv-00143-W^S Document 20-15 --> P a g e 18sof 37 Johnny Duran, Account #909111554585; and Jodi Walker, Account #909111859143.4. T h e copies of checks in Exhibit " A " are kept in the ordinary course of business at EchoStars headquarters in Englewood, Colorado. Pursuant to the requirements of 28 U.S.C. § 1746,1 declare under penalty ofp e i j u r y that the foregoing is true and correct.Executed in the United States on JijUxz I , Shannon Picchione
  19. 19. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 1$ of 37 ) • EXHIBIT A
  20. 20. C a s e 1:04-cv-00143-WI^S Document 20-15 --> P a g e 20xof 37 q c q | i 1 5 c,o 5 l r^icVae CouAu. 032739 HUMATTM f *M( t/li. MX MEOtACOM COMMUNICATIONS CORPORATION WMWWT touiwn wiwjumr ACCOINT oVSS. •• 4 MMfTMMA M C 110*0 AM OM-lll » owwm.1 uw OATI PAY 4/>6 Apii 5,2004 • 20.W " " TWEWTY EIGHT AMD OWlOQ OOLLARS ATLANTA. OA j0j4*9013 ••OII7IS- »50jll00?67i: 6JOiS*S«ltr? SO** "VOOOCOO2B1R/ CHAM C CK MC 032136 CXASt lanNATTAN fAHKIMK MA MEDUCOM COMMUNICATIONS CORPORATION w BTMCfT M) KVfTAXMA BUCK »0M> • C U I P O H IV KM) Mt OATI FAY M*tft«a004 • s 29.993/l4 TWENTY NINE ANO ttflOO DOLLARS oo> ObhNtlMvfc ATttHWOitC * POBOXIOJOIl ATLANTA. CA JCJ4J-J011 r o s m b * :o3 i i c o ? b 7 i : &iois kit $01* /fi&ooocum/ MMMf, 031246 MEOIACOM COMMUNICATIONS CORPORATION Z f S E m V S i a * "* wnw immmmvn mow wujwviot m* K N M AC C fM ttWJII U W M t A Mt ) OATI PAY Fftfwy 10,2004 1*3.99 TVV8NTY HUE AND IWW0 DOLLARS 19 TM 0-W« Difh N* X< W fK « » rvWWTBUDfl PO BOX 105O1J ATlAJfTA. OA 305*9^015 Z j f i f e x E ••oiimfc* •;osuooicr<: blois 90*1- 6/doo 000IW/ l l =
  21. 21. CO a-o o~c r 3 s u i?£t)0° II If;! S*!, afi*i S =s S!<r<0 li0~ {. r 3 r tr M ni i 211 fill Ml= S ill? s* 6 £s 38 _ 3Sii 83 53 S3 3 s e2 0^ = O<- a- *. M -T ! S III • -rJ r! 2 T - C~ iA *T/> CO i
  22. 22. C a s e 1:04-cv-00143-WLS Document 20-15 --> Page 2^ of 37 l ) l * > ^ •=>/ Coa^u. SSSn 027830 MEDIA COM COMMUNICATIONS CORPORATION *iu«wiJiNn v*i««TCKK i»t 1*t J MMIAHMA MAC* MHa A "M3 W*1 ««1 OATt MY October 2.2003 »29.99 TWENTY NINE ANO 98/100 OOUARS .OlSHNlTWORK roeox io»ie» ATLANTA. GA M W 6HI •,0«?AI0" # C O S I I O O S K K : &3OISFT<3<?WT SO*- / O O O O O O Z S W o«c* 027157 puuc iMCUM,ia UCDUCOUCOUMU^CADOHS CORPORATION .SlSfiftPSS, itur »|«MUOVl*A»CACMMAO * • • • eu#ma.aM CT U* 9*f4«T*«10,£003 l»N TWENTY NINE AND W O O OOLLARS 8J5 or OWH NETWORK P 0 6 G X 109199 ATLANTA. OA 90*4141 fOltkST* HO 1 i lOO 2 6 7i; 6J015199UI SOI* /000000?*9q/ I Manhattan S N W* K» AK 026424 MEDIACOM COMMUNICATIONS CORPORATION WI iMMtrsTwn U H T W *MH l W U MA iA O U-M 311 WHOI Otfl fAV Ausu«12.20» «»« TWtNTY N M AND 9V100 OOtLARS DISH NETWORK P O BOX <09109 ATLANTA. GA 903494199 cosnoozbf*: i a o u m « . i /ooooooeqsq/
  23. 23. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 23, of 37 9 0 q i 1 1 5 ^ M 5 & - C Johnny Puraa _Ag.lt 8 2 5 7 9 0 911 t 5 $ 4 5 B 8 P ] • C h e c k h o r e fof A u t o m a t i c P a y m e n t l C h a n g e of a d d r e s s Information. 1. FJc*<lrifcrn^anurt!hie»c*f«aclWip^TTvmtouc>». New Home Phono: ( ) • t. Smd * tfi» m o r m p * * r * U n & tarMw WiHflbfprtliuVxniUa^. c a w * / wxid •SlWit- — C9 f . 8141a: 4. fr*nl cal le ipd»i» I yw* c a t tfarga « epkw. 2 p Crt®: n • C h a c k h e r e If y o u do n o t w a n t WUino e t a t c m e n t a t e n t In t h e mall. Due: M f t k s C h e c k P a y a b l e To: •ayTTwnt Oo»: 10/26/03 ?.&BcSlKW Amount E n d o i e d : ATLANTA GA 30343-8161 BeSSSO^lllSbHSflUOOQgmi Q • C h e c k hera for Automatic Payment! C h a n g e of a d d r a a s J n f o m i a l l o n . 1. fU cii Wvrrftoa K. O b*A itfi d M p*yir»M c a w w New Home Phona; J. t MhMsmon^rnr«w(IH7Cu>m,VaO>Al Sl/rat 1. VWfiAwMtatfl I* piH »!»****. c*r ,State:, 4 . Y^»;PALBI^*IJ^«YOGRCAR3CF«RGMCRT>F6T« • • C h e c k here H y o u d o eot w a n t b a l i n g e t a t e m e n t e s e n t In t h e m a i L a i a n w Duo. Make Check PayaWe To: 29.H Due: OI AN NETWORK P.O. BOX iosias unl Lrcioscd ATLANTA G A 3 O I 4 0 I 1 I 1 fl255iimu.sbMSAbooo2ti,m 02BB72 CHIC* ffJUiifR I uA Cf a W A K Tm r Cll A l l U M O M T T A N B A M I f c A , HA. MEOIACOM COMMUNICATIONS C O P P O R A T I O N w M S O ot m & NT t MU S tail H W H > tfA&i 5A A AU 0O n*in tmot • CU/»*im CT AV PAY 2003 • 2009 TW8NTY NINC ANO MMOO DOLLARS 33 0I8HNHTW0W P O B O X 1*5169 ATLANTA. OA K » « a - 5 I W •oe&s??* «J03ii0a26?»s 6jcnsi«m2 sos* / o o o o o o a s W
  24. 24. M7oo * e cnl E 3 - i §1LP > 3 -5 { H 5- T *5 3 « >« £ »--UJ 2 a i £ 2 2tooIID hi* I r cv ifc i •M fsf*cro fc r if JIJ i hi Mil II II! «¥ * l t * ! • M 13! f i l l I I I 8 -= m I ill! = i _= J -f :§ • • • ss« =: ill M *=? I l» 53 < =1 : lis 115 § - * •SB Sf i s <N M l S f 1 == <»- ~= §s 5 iJH* I I III? I ! Oa.< • *• ci co~ r-
  25. 25. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 25 of 37 o j o i ^ e R q o q 1 1 w _> < ? M 3 Wylfcer faUi Bt55 9Q ? n i 8 ? 9 1 < 3 _ Q • C h e c k bere f o r A u t o m a t i c P a y m e n t ! C h a n g e of i d d r e s s Irrfarmatkxi. t. «lwlto4^#af>#b*i*»oftiiw^c*p«n. New Home Phone: (. 2. _Swtf U h i mOtfUlS HyVMfl IS jfoi f w n f y noukt1|°3 1 WUurtb!Itirtlb«p«lutorufcily. «. ^ m w J c i l i o i c d a J t H y w r c J r t c h m ^ i w w p t w . fillets Cky: Zip Code:. Stale:, r i • C h e c k h e r e If y o u d o n o t w i n t billing e t a t e m e n t e s e n t In t h e m a i l . Balance Due: M a k e C h e c k Payable To: 82fcM . P a y m e n t Duo; 10&7/01 . DUN NfTWDflK Amount Enclosed; 82 551011 HASH 4 3 0 0 0 2 1 ^ 1 .JodlWtft#r n • C h a e K here for Automatic Payment J C h a n g e of a d d r e s s Information. New Home Phone: I ) L SMdtaMiMnttipftyzwdarttino«ri. r VMj*l Street-/c& i ^tervb&ftflbKptfeuianuik**. flte Sala: 4. Ybo I jwcertchwew Zip Code: | I • C h e c k hero W y o u d o not want blHJno e u t o m t n t j « « n t in t h e mall. Mako C h e c k PayaWe 7 b : P a y m e n t Due: 0J6H NETWORK 0907/03 ^ J Amount E n c l o s e d . sfosprvasu^s, Mtfj} fiassiowifls-jmaooaami 026704 oun l N r A O M N UU. H T A MEDIACOM COMMUNICATIONS CORPORATION tmiuMceienar wrw RMnXnH CKSCMWIMT ACCOVKT NUM10N.M xmt Ml) MftfAtttLA B A H MOO CC « » J 1 1 1*H4D GOFMUi.n urn 0*11 PAY Augvll 22, 2003 129.99 03N TWENTY NWE AND 89^00 OOVUUIS 2«S or DISH WE7WOW .»1 F O BOX 104 Wl ATLANTA GA J0J43-51GV -0*6701.- i:o3iioo?67i: t s o i s m w sos- /ooooooeqss/
  26. 26. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 2§ of 37 •joamRir Acctf *255 90 911 1859143 • Automatic r ivmeni. Cftrek h m mm M wf Mc« W AMOUNT DUE: 529.99 • T V Fsp<riff«l!lfii|. Payment Duo: 03/27/04 VrOUTVOnCiSHhonvtW**!V(A O • •tMdrao. Amount Enclosed . , M e ! 09MS4*/Cuit> Pay your bill online at Make Chech PayableTo: dhhnctwork.com or OlSH NETWORK o n your TV on P.O. 8 0 * 105313 ATLANTA GA 3 0 3 4 * 5 3 1 3 DISH H o m e channel 100. I..IKI1 B g s s w m a s i m a o o o a w i 031402 OUK KUMAnAN »«IW UU. MA M K 0 I A C 0 M COMMUNICATIONS C O R P O R A T I O N noili**CTKT*«T M N M m N IW1 ^SSwntamua K O WA A I OO U»T l IUMI ,a m a OT A* PAYc>4 f«D*v9/y it. 2004 »»*9 •••• TWENTY NINe ANO W1 CO OOUARS «»« DM N«*«* vcaoArnmMPAYi * PO BOX 105013 ATLANTA. OA J 0 3 4 V M 1 1 2 5 3 5s o s f ^ / « »oauo<i° • ; o i » i o o 2 6 7«: t a o i s i s q t , ? /oooooo*qq<*/ Payment Coroon ^QdiyVpttCfr Q • C h e c k hero for Automatic payment! Change or addreaa Information. t. nioUk*w**nQnlh«b»Ckrt«cfW»p*yi*rtco4**t Nbw Home R w n e : ( . t S«ntfrttt®Wb*pBT*wittrNfW^w**l Street 1 YferfcUreMbKbiftfuMU* Cly: Rfalfl* 1 ItoirutaltaBpaatofpiFacdcteflgtsNciptei. Co Code: [ n • C h e c k hero W you do not want billing a t a t e m e n l e a e n t In t h e melL Balance D u e : »toIlrt: M a k e C b a c k Payable To: 3 29.99 PISH NETWORK Amount E n d o e a d : M b . . i«m.MjUH!U.u. H nju.i.«n N f.un..i flassiiHiiifisimaoooaHsi
  27. 27. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 27 of 37 EXHIBIT B
  28. 28. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 28 of 37 IN T H E U N I T E D S T A T E S D I S T R I C T C O U R T FOR T H E DISTRICT OF C O L O R A D OCivil Action No. 04-M-0664 (CBS)E C H O S T A R S A T E L L I T E L.L.C., a Colorado Limited Liability Corporation Plaintiff,v.M E D I A C O M C O M M U N I C A T I O N S C O R P O R A T I O N , a Delaware Corporation;and M C C G E O R G I A , a Delaware Corporation, d/b/a M E D I A C O M ; J O H N D O E S1-100 Defendants. DECLARATION OF GARY PALKA1. M y name is Gary Palka. I have personal knowledge of the events and facts discussed herein and they are true and correct. I am over 18 years of age, I have never been convicted o f a felony, and I am competent in all respects to make this declaration.2. I am employed by EchoStar Satellite L L C ("EchoStar") as a Senior Operations Analyst in the DISH Network Signal Integrity division, located at 90 Inverness Circle East, Englewood, Colorado 80112.3. Attached hereto as Exhibit " B " is a true and correct copy o f EchoStar Satellite, L L C s Residential Customer Agreement (RCA). The R C A is kept b y EchoStar in the ordinary course o f business and is published via EchoStars website, http://www.dishnetwork.com.
  29. 29. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 2^ of 37 ) *4. While conducting m y investigation, in Colorado, to determine whether Mediacomhad any subscriber accounts with DISH Network, I reviewed the website http://mbc-databank.com. This website was entitled Media Business Corp. (MBC). M B C is theonline and real-time source of business and industry intelligence within the cabletelevision industry. Cable operators and the vendors that support their business have aresource to gather strategic and tactical information for sales and product development.5. I conducted a search for Mediacom in Georgia on M B C and was taken to a pagecontaining the contacts, names and titles o f Mediacom employees. These individualsincluded: General Manager, Jim Walker; Chief Technician, John Duran; MarketingM a n a g e r , Dan Carleton; and O f f i c e Manager Annie Dcnnard.6. I then performed a search of these names in the EchoStar database of subscribers.I found a subscriber account for Johnny Duran. I then performed searches on the accountinformation including phone number, physical address and mailing address.7. The report I received on the mailing address found two more DISH Networkaccounts with the same mailing address as Johnny Duran. Those two customers wereMichael Coutu and Jodi Walker. All three of these accounts had identical mailingaddresses, and the physical addresses were all on the same street in Cleveland, Georgia.8. After I obtained the information regarding Mediacom employees having DISHNetwork accounts, I then investigated the website http://www.cablevellowpages.com. O nthis website I found the Mediacom post office box that was the c o m m o n address for John
  30. 30. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 30 of 37 »Duran, M i c h a e l Coutu and Jodi Walker. The website listed the address as belonging toMediacom. P.O. Box 1707, 509 Flint Avenue, Albany, Georgia 31702-1707.9. I also conducted a subsequent investigation of the above mentioned Mediacomsubscriber accounts. After EchoStar filed its lawsuit against M e d i a c o m on April 5, 2004,I returned to the EchoStar database to learn that all three accounts had been disconnected:Jodi Walkers account was disconnected in April 22, 2004; Johnny Duran and MichaelCoutu disconnected their subscriber accounts on April 28, 2004.Pursuant to the requirements o f 28 U.S.C. § 1 7 4 6 , 1 declare under penalty o f peijury thatthe foregoing is true and correct.Executed in the United States on * 3 3 < > o H Gary Palka
  31. 31. C a s e 1:04-cv-00143-WLS Document 20-15 --> P a g e 31^ of EXHIBIT B
  32. 32. t a 8 u u- • c a s n :04-W00143^WtSaiDbW/iYtent 20-15 --> P a g e 3 ^ of 3 7 " I f I all In t h e dish! home I locate a retailer | e n espafiol | a b o u t [rWIt* I GET DISH I PROGRAMMING I PRODUCTS I CUSTOMER CARE I RESIDENTIAL C U S T O M E R A G R E E M E N T E f f e c t i v e a s of S e p t e m b e r 1, 2 0 0 1 until r e p l a c e d . T H I S DOCUMENT DESCRIBES THE TERMS AND C O N D I T I O N S UNDER WHICH DISH NETWORK WILL PROVIDE ITS SERVICE T O YOU. IF YOU DO NOT ACCEPT THESE TERMS AND CONDITIONS, PLEASE NOTIFY U S IMMEDIATELY AND WE WILL CANCEL YOUR SERVICE. IF YOU ARE A NEW DISH NETWORK CUSTOMER, YOUR ACTIVATION OF A DISH NETWORK ACCOUNT AND RECEIPT O F DISH NETWORK SERVICES SHALL CONSTITUTE YOUR ACCEPTANCE OF T H I S AGREEMENT AND ITS TERMS AND CONDITIONS WILL BE LEGALLY BINDING UPON YOU. IF YOU ARE AN EXISTING DISH NETWORK CUSTOMER, YOUR CONTINUED RECEIPT OF DISH NETWORK S E R V I C E S FOLLOWING RECEIPT OR PUBLICATION BY DISH NETWORK ON rTS WEB SITE O F T H I S AGREEMENT SHALL CONSTITUTE YOUR ACCEPTANCE OF ITS TERMS AND CONDITIONS, AND, ACCORDINGLY, THEY WILL BE LEGALLY BINDING ON YOU. T h a n k you f o r c h o o s i n g D I S H N e t w o r k f o r y o u r t e l e v i s i o n s e r v i c e p r o v i d e r . DISH N e t w o r k Is h a p p y to a n s w e r a n y q u e s t i o n s y o u m a y h a v e a n d t o p r o v i d e you with technical a n d o t h e r c u s t o m e r s u p p o r t t h r o u g h t h e following toll-free n u m b e r a n d email address: 1-800-333-DISH feedbackOechostar.com or you m a y write to: DISH Network Customer Service Center P.O. Box 3 3 5 7 7 N o r t h g l e n n , CO 8 0 2 3 3 a n d , for g e n e r a l knowledge, try o u r website at w w w . d i s h n e t w o r k . c o m . "DISH N e t w o r k " Is a t r a d e m a r k of E c h o S t a r S a t e l l i t e C o r p o r a t i o n . 1 . THE D I S H N E T W O R K S E R V I C E A. S e r v i c e s D e f i n e d . DISH N e t w o r k o f f e r s a w i d e v a r i e t y of v i d e o a n d a u d i o p r o g r a m m i n g and other services and w e a r e constantly striving to a d d n e w services t o o u r l i n e u p . For p u r p o s e s of t h i s A g r e e m e n t t h e t e r m " S e r v i c e s " shall m e a n t h e p r o g r a m m i n g available on DISH N e t w o r k ( w h e t h e r subscription b a s e d o r pay per v i e w b a s e d ) a n d a n y o t h e r s e r v i c e s t h a t w e m a y p r o v i d e to c o n s u m e r s e i t h e r n o w o r in t h e f u t u r e . For p u r p o s e s of t h i s A g r e e m e n t t h e t e r m s "You" or " Y o u r " r e f e r t o y o u , t h e DISH Network s u b s c r i b e r . B. P r o g r a m m i n g C h a n g e s . E x c e p t a s o t h e r w i s e s e t forth In t h i s A g r e e m e n t , you m a y c h a n g e y o u r p r o g r a m m i n g selection a t a n y time by notifying us. A f e e m a y apply t o s u c h c h a n g e s ( C h a n g e of S e r v i c e F e e ) . In a d d i t i o n , y o u m a y b e c h a r g e d a f e e ( S e r v i c e A c c e s s F e e ) if y o u fall to s u b s c r i b e to o n e of DISH N e t w o r k s b a s i c p r o g r a m m i n g p a c k a g e s which Include Americas Top 50, A m e r i c a s Top 100/CD, A m e r i c a s T o p 1 5 0 , D I S H L a t i n o o r D I S H Latino D o s . C. P r o g r a m m i n g Availability. C e r t a i n S e r v i c e s t r a n s m i t t e d b y u s , Including b u t n o thttp://www.dishnetwork.com/content/aboutus/RCA/index.shtml 6/22/2004
  33. 33. Gase-1:04=ev--<3Q^43-WL>S-"-E>OCTrment 2 0 - 1 5 -> P a g e 3 3 of 3 7 1 limited t o s o m e s u b s c r i p t i o n S e r v i c e s , s p o r t i n g e v e n t s a n d b r o a d c a s t n e t w o r k S e r v i c e s , m a y b e b l a c k e d o u t In y o u r a r e a of r e c e p t i o n . If you c i r c u m v e n t o r a t t e m p t t o c i r c u m v e n t a n y of t h e s e b l a c k o u t s , you m a y b e s u b j e c t t o legal a c t i o n . You m u s t be a t l e a s t 1 8 y e a r s of a g e , or t h e a p p l i c a b l e a g e of m a j o r i t y w h e r e you r e s i d e , In order to receive adult-orlented programming services. D. O r d e r i n g P a y P e r View. You m a y o r d e r DISH N e t w o r k p a y - p e r - v i e w S e r v i c e s b y u s i n g y o u r o n - s c r e e n P r o g r a m G u i d e a n d r e m o t e c o n t r o l u n i t to s e l e c t t h e m o v i e s a n d o t h e r e v e n t s w e o f f e r . T o o r d e r DISH N e t w o r k p a y - p e r - v i e w S e r v i c e s , y o u r D I S H N e t w o r k DBS d i g i t a l r e c e i v e r m u s t b e c o n n e c t e d t o a t e l e p h o n e o u t l e t . You m a y a l s o o r d e r DISH N e t w o r k s p e c i a l e v e n t s a n d p a y - p e r - v i e w S e r v i c e s o v e r t h e t e l e p h o n e b y calling t h e C u s t o m e r S e r v i c e C e n t e r o r b y u s i n g o u r a u t o m a t e d s y s t e m t h r o u g h t h e following t o l l - f r e e n u m b e r : 1 - 8 7 7 - D I S H - P P V ( 3 4 7 - 4 7 7 0 ) for o r d e r i n g m o v i e s A s m a l l f e e will a p p l y f o r u s e of t h e a u t o m a t e d s y s t e m ( P a y - P e r - V i e w A u t o m a t e d F e e ) or t h e C u s t o m e r S e r v i c e C e n t e r ( P a y - P e r - V i e w F e e ) . E. P r i v a t e Viewing. D I S H N e t w o r k p r o v i d e s S e r v i c e s t o you f o r y o u r p r i v a t e h o m e v i e w i n g , u s e a n d e n j o y m e n t . You a g r e e t h a t t h e S e r v i c e s p r o v i d e d will n o t b e v i e w e d o u t s i d e of y o u r p r i v a t e r e s i d e n c e . You a r e p e r m i t t e d t o e x h i b i t t h e S e r v i c e s solely In y o u r p r i v a t e r e s i d e n c e a n d n o t In a n y o t h e r a r e a s . T h e S e r v i c e s m a y n o t b e r e b r o a d c a s t , t r a n s m i t t e d , r e c o r d e d or p e r f o r m e d , n o r m a y a d m i s s i o n b e c h a r g e d f o r l i s t e n i n g t o or viewing a n y S e r v i c e s p r o v i d e d b y u s . If w e l a t e r d e t e r m i n e t h a t you utilized y o u r DISH N e t w o r k E q u i p m e n t ( i n c l u d i n g a n y a d d i t i o n a l DISH N e t w o r k r e c e i v e r s ) o r s o l d , l e a s e d o r o t h e r w i s e g a v e p o s s e s s i o n of t h e s a m e t o a t h i r d p a r t y w h o y o u k n e w o r r e a s o n a b l y s h o u l d h a v e k n o w n I n t e n d e d t o u s e It t o p e r m i t t h e v i e w i n g of t h e S e r v i c e s In a c o m m e r c i a l e s t a b l i s h m e n t or a n y o t h e r a r e a o p e n to t h e p u b l i c , w e m a y t e r m i n a t e t h e S e r v i c e s a n d In a d d i t i o n to all o t h e r a p p l i c a b l e f e e s , you a g r e e t o p a y u s t h e d i f f e r e n c e b e t w e e n t h e p r i c e a c t u a l l y paid f o r t h e S e r v i c e s a n d t h e full c o m m e r c i a l r a t e f o r s u c h S e r v i c e s , r e g a r d l e s s of w h e t h e r w e h a v e or h a d t h e c o m m e r c i a l r i g h t s t o s u c h S e r v i c e s . T h e p a y m e n t of t h a t a m o u n t a n d / o r t h e t e r m i n a t i o n of S e r v i c e s s h a l l n o t p r e j u d i c e o u r ability t o e x e r c i s e a n y o t h e r r i g h t s a n d r e m e d i e s w e m a y h a v e u n d e r t h i s A g r e e m e n t , a t law, In e q u i t y , or o t h e r w i s e . F. A d d i t i o n a l R e c e i v e r s . To I n d e p e n d e n t l y t u n e a d d i t i o n a l t e l e v i s i o n s w i t h i n y o u r h o m e , a s e p a r a t e D I S H N e t w o r k r e c e i v e r Is r e q u i r e d f o r e a c h t e l e v i s i o n . D I S H N e t w o r k will allow you t o p l a c e u p t o f i v e a d d i t i o n a l r e c e i v e r s o n y o u r a c c o u n t . E a c h a d d i t i o n a l r e c e i v e r would b e a u t h o r i z e d to r e c e i v e t h e s a m e S e r v i c e s a s y o u r Initial r e c e i v e r . DISH N e t w o r k will c h a r g e you a r e d u c e d m o n t h l y f e e (Additional R e c e i v e r A u t h o r i z a t i o n F e e ) f o r e a c h a d d i t i o n a l r e c e i v e r a d d e d to y o u r a c c o u n t . This o p t i o n Is o n l y a v a i l a b l e if y o u r Initial D I S H N e t w o r k r e c e i v e r a n d all a d d i t i o n a l r e c e l v e r ( s ) a r e located at t h e s a m e r e s i d e n c e a n d a r e continuously connected to t h e s a m e t e l e p h o n e l i n e . If you d e s i r e to r e c e i v e S e r v i c e s a t t w o d i f f e r e n t l o c a t i o n s , you m u s t o p e n a s e p a r a t e a c c o u n t f o r e a c h l o c a t i o n . You a g r e e t h a t you will not d i r e c t l y o r indirectly u s e a s i n g l e a c c o u n t f o r t h e p u r p o s e of a u t h o r i z i n g S e r v i c e s for m u l t i p l e D I S H N e t w o r k r e c e i v e r s t h a t a r e n o t all l o c a t e d In t h e s a m e r e s i d e n c e a n d c o n n e c t e d t o t h e s a m e p h o n e line. If w e l a t e r d e t e r m i n e t h a t you d i d , w e m a y t e r m i n a t e y o u r S e r v i c e s a n d , in a d d i t i o n t o all o t h e r a p p l i c a b l e f e e s , y o u a g r e e t o p a y u s t h e d i f f e r e n c e b e t w e e n t h e a m o u n t s a c t u a l l y r e c e i v e d b y u s a n d t h e full r e t a i l p r i c e f o r t h e S e r v i c e s a u t h o r i z e d f o r e a c h DISH N e t w o r k DBS r e c e i v e r o n t h e a c c o u n t , w h e t h e r o w n e d b y you o r n o t . T h e p a y m e n t of t h a t a m o u n t a n d / o r t h e t e r m i n a t i o n of S e r v i c e s s h a l l n o t p r e j u d i c e o u r ability t o e x e r c i s e a n y o t h e r r i g h t s a n d r e m e d i e s w e m a y h a v e u n d e r t h i s A g r e e m e n t , a t l a w , In e q u i t y , o r o t h e r w i s e . G . C h a n g e s In S e r v i c e s o f f e r e d . DISH N e t w o r k r e s e r v e s t h e r i g h t t o c h a n g e t h e S e r v i c e s t h a t w e o f f e r , a n d o u r p r i c e s o r f e e s r e l a t e d t o s u c h S e r v i c e s a t a n y t i m e . If t h e c h a n g e a f f e c t s y o u , w e will p r o v i d e you n o t i c e of t h e c h a n g e a n d Its e f f e c t i v e d a t e . T h e n o t i c e m a y b e p r o v i d e d o n y o u r billing s t a t e m e n t o r b y o t h e r c o m m u n i c a t i o n p e r m i t t e d u n d e r S e c t i o n 9B. In t h e e v e n t of a c h a n g e In t h e c o n t e n t s of a n y p r o g r a m m i n g , p r o g r a m m i n g p a c k a g e s or o t h e r S e r v i c e s , y o u u n d e r s t a n d a n d a g r e e t h a t w e h a v e n o o b l i g a t i o n to r e p l a c e o r s u p p l e m e n t t h e p r o g r a m m i n g , p r o g r a m m i n g p a c k a g e s or o t h e r Services previously offered that h a v e been deleted, r e a r r a n g e d o r o t h e r w i s e c h a n g e d . You f u r t h e r u n d e r s t a n d a n d a g r e e you will n o t b e e n t i t l e d t o a n y r e f u n d b e c a u s e of a c h a n g e In t h e c o n t e n t s of a n y p r o g r a m m i n g , programming packages, or other Services previously offered. H. Multi-Month S u b s c r i p t i o n s . For m u l t i - m o n t h s u b s c r i p t i o n s , you m a y d o w n g r a d e t h e S e r v i c e s only a t t h e t i m e of r e n e w a l . You m a y n o t d o w n g r a d e t h e S e r v i c e s d u r i n g t h e t e r m of t h e m u l t i - m o n t h s u b s c r i p t i o n .http://www.dishnetwork.com/content/aboutus/RCA/index.shtml 6/22/2004
  34. 34. C a s e 1:04-cv-00143-Wfc.S Document 20-15 --> P a g e 3 4 of 3 7 2 . BILLING P O L I C I E S AND PAYMENTS FOR S E R V I C E S A. You a g r e e t o p a y all a m o u n t s billed f o r S e r v i c e s a n d t o p a y all t a x e s , f e e s a n d o t h e r c h a r g e s , If a n y , w h i c h a r e now or m a y In t h e f u t u r e b e a s s e s s e d o n t h e S e r v i c e s y o u r e c e i v e f r o m u s . U n l e s s you p r e p a y f o r a m u l t i - m o n t h s u b s c r i p t i o n to S e r v i c e s , w e will bill you e a c h m o n t h , In a d v a n c e , f o r S e r v i c e s o r d e r e d b y you or a n y o n e w h o u s e s your D I S H N e t w o r k E q u i p m e n t , w h e t h e r with or w i t h o u t y o u r p e r m i s s i o n , until you c a n c e l t h e S e r v i c e s . T h e bills you r e c e i v e will s h o w t h e t o t a l a m o u n t due, t h e payment due date, p a y m e n t s , credits, purchases and other charges to your account. B. You a g r e e to p a y u s In full m o n t h l y b y t h e p a y m e n t d u e d a t e for t h e S e r v i c e s a n d f o r a n y o t h e r c h a r g e s d u e u s , Including a n y f e e s s e t f o r t h In t h i s S e c t i o n 2. P a y m e n t of y o u r bill a f t e r t h e d u e d a t e will r e s u l t In you p a y i n g u s a Late P a y m e n t F e e . O t h e r f e e s a n d c h a r g e s m a y a l s o b e a s s e s s e d . If p a r t i a l p a y m e n t s a r e m a d e , t h e y will b e a p p l i e d f i r s t t o t h e o l d e s t o u t s t a n d i n g bill. If y o u s e n d c h e c k s o r m o n e y o r d e r s m a r k e d " p a y m e n t In full," w e c a n a c c e p t t h e m w i t h o u t losing a n y of o u r r i g h t s t o collect a n y o t h e r a m o u n t s o w e d b y y o u , n o t w i t h s t a n d i n g y o u r c h a r a c t e r i z a t i o n of t h e p a y m e n t . DISH N e t w o r k d o e s n o t e x t e n d c r e d i t t o o u r c u s t o m e r s , a n d t h e Late P a y m e n t F e e Is n o t I n t e r e s t , a c r e d i t s e r v i c e c h a r g e o r a f i n a n c e c h a r g e . You u n d e r s t a n d a n d a g r e e t h a t in t h e c a s e of l a t e p a y m e n t or n o n p a y m e n t f o r a n y S e r v i c e s o r d e r e d by you or for a n y of t h e c h a r g e s s t a t e d b e l o w , w e m a y r e p o r t s u c h l a t e p a y m e n t or n o n p a y m e n t t o c r e d i t r e p o r t i n g a g e n c i e s . If y o u d o n o t p a y y o u r bill b y t h e d u e d a t e , w e h a v e t h e r i g h t to d i s c o n n e c t y o u r S e r v i c e s a t a n y t i m e t h e r e a f t e r , In o u r sole d i s c r e t i o n . DISH N e t w o r k m a y r e q u i r e y o u t o p a y all p a s t d u e c h a r g e s , a R e c o n n e c t F e e , a d e p o s i t e q u a l t o a m i n i m u m of o n e m o n t h s a d v a n c e c h a r g e s a n d all o u t s t a n d i n g b a l a n c e s a c c r u e d t h r o u g h t h e d a t e of d e a c t i v a t i o n , b e f o r e w e r e c o n n e c t y o u r S e r v i c e s . D e p o s i t s will n o t b e h e l d s e g r e g a t e d f r o m o t h e r f u n d s a n d s h a l l n o t e a r n or a c c r u e I n t e r e s t . C . If y o u a t a n y t i m e fall, n e g l e c t , or r e f u s e to m a k e t i m e l y p a y m e n t s h e r e u n d e r , or If a p e t i t i o n In b a n k r u p t c y s h a l l b e filed o n y o u r b e h a l f o r a g a i n s t y o u , or if you t a k e a d v a n t a g e of a n y i n s o l v e n c y law o r b e c o m e i n s o l v e n t or m a k e a n a s s i g n m e n t for t h e b e n e f i t of c r e d i t o r s , o r If a r e c e i v e r , l i q u i d a t o r , or t r u s t e e Is a p p o i n t e d f o r y o u r p r o p e r t y or a f f a i r s , w e shall b e wholly r e l i e v e d f r o m o u r o b l i g a t i o n s h e r e u n d e r . D . If you p a i d f o r a n a n n u a l or o t h e r m u l t i - m o n t h s u b s c r i p t i o n t o a n y S e r v i c e s a n d y o u r a c c o u n t Is p a s t d u e f o r a n y a m o u n t s o w e d to u s , a t o u r o p t i o n w e m a y s u s p e n d a n y or all S e r v i c e until p a y m e n t Is r e c e i v e d , a n d / o r c o n v e r t y o u r a n n u a l or o t h e r m u l t i - m o n t h s u b s c r i p t i o n t o a m o n t h l y s u b s c r i p t i o n . If w e c o n v e r t y o u r m u l t i - m o n t h s u b s c r i p t i o n t o a m o n t h l y s u b s c r i p t i o n , w e will first a p p l y t h e a m o u n t y o u paid f o r your multi-month subscription to any past d u e a m o u n t s and t h e n any remaining a m o u n t s to f u t u r e o b l i g a t i o n s . If w e e l e c t t o o f f s e t t h e a m o u n t p a i d f o r t h e r e m a i n i n g p o r t i o n of a m u l t i - m o n t h s u b s c r i p t i o n a g a i n s t a m o u n t s p a s t d u e , you a g r e e to p a y , In a d d i t i o n t o all o t h e r a p p l i c a b l e f e e s , t h e O f f s e t F e e s e t f o r t h b e l o w f o r e a c h m o n t h and partial m o n t h that the multi-month subscription was previously received. E. If w e u s e a collection a g e n c y or a t t o r n e y t o collect m o n e y y o u o w e u s o r t o a s s e r t a n y o t h e r r i g h t which w e m a y h a v e a g a i n s t y o u , you a g r e e to p a y t h e r e a s o n a b l e c o s t s of c o l l e c t i o n or o t h e r a c t i o n . T h e s e c o s t s m i g h t I n c l u d e , b u t a r e n o t limited t o , t h e c o s t s of a c o l l e c t i o n a g e n c y , r e a s o n a b l e a t t o r n e y s f e e s a n d c o u r t c o s t s . If t h e r e a r e billing e r r o r s o r o t h e r r e q u e s t s f o r c r e d i t , you c a n c o n t a c t o u r C u s t o m e r S e r v i c e C e n t e r b y t e l e p h o n e o r In w r i t i n g . You m u s t c o n t a c t u s within sixty ( 6 0 ) d a y s of t h e d m e y o u r e c e i v e t h e billing s t a t e m e n t f o r w h i c h y o u a r e s e e k i n g c o r r e c t i o n s . F a i l u r e t o t i m e l y n o t i f y u s of a d i s p u t e s h a l l c o n s t i t u t e a c c e p t a n c e of t h e bill. U n d i s p u t e d p o r t i o n s of t h e billing s t a t e m e n t m u s t b e paid b e f o r e t h e n e x t billing s t a t e m e n t Is I s s u e d t o a v o i d a n a d m i n i s t r a t i v e f e e for l a t e p a y m e n t . All p a y m e n t s f o r S e r v i c e s m u s t b e m a d e d i r e c t l y b y you t o u s . DISH N e t w o r k shall h a v e n o o b l i g a t i o n t o p r o v i d e S e r v i c e s f o r which p a y m e n t Is m a d e by you t o a t h i r d p a r t y . F. In a d d i t i o n t o t h e a m o u n t s d u e f o r S e r v i c e s , you a g r e e t o p a y t h e f e e s r e f e r e n c e d b e l o w ( " F e e s " ) w h e n a p p l i c a b l e . D I S H N e t w o r k r e s e r v e s t h e r i g h t to I n c r e a s e t h e s e F e e s o r a d d a d d i t i o n a l F e e s In t h e f u t u r e , In o u r s o l e d i s c r e t i o n . S m a r t C a r d R e p l a c e m e n t Fee $ 5 0 . 0 0 Additional Receiver Authorization Fee (monthly, per receiver) $ 4 . 9 9 Late Payment Fee $ 5 . 0 0 C h a n g e of S e r v i c e F e e $ 5 . 0 0 D u p l i c a t e Billing S t a t e m e n t F e e $ 2 . 0 0 Overnight Delivery Fee $ 1 8 . 0 0http ://www.dishnetwork.com/content/aboutus/RC A/index, shtml 6/22/2004

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