One of the leading satellite companies in the US,
DISH Network Corporation
) has filed a lawsuit against four major broadcasting companies
Walt Disney Co.
) owned Fox network and
)-owned NBC Universal seeking a declaratory judgment to make DISH's
recently launched Auto Hop technology acceptable among these
The new Primetime Anytime service offered by DISH through its
Auto Hop technology to premium HD subscribers, allows users to skip
commercials at the time of watching recorded TV-shows.
However, these broadcasting networks strongly responded to
DISH's action by filing a countersuit claiming that the company has
breached the copyright law by customizing TV shows for their own
commercial interest. These broadcasters also believe that if such
practices are encouraged then they will suffer significantly in
terms of losing advertisement revenue.
However, DISH Network believes that they have not infringed any
copyright law as the new service is similar to the DVR service that
provides flexible viewing of TV shows at their own preferred time.
Moreover, skipping of advertisement is possible only during
recorded programs and not at the time of live broadcast of the
show, hence not violating any contract agreement with the
Nowadays it has been noticed that the advent of new innovative
devices, which offers flexibility to viewers to watch their
favorite TV shows anytime anywhere, has given way to a number of
legal tussles between the broadcasters and cable and satellite
Time Warner Cable Inc
) settled the long pending legal tussle with
) regarding the streaming of cable TV shows on iPad.
We believe that such incidents will keep coming up until
government redefines or brings more clarity to the contract terms
with the media and broadcasting networks.
Currently, DISH Networkhas a Zacks #3 Rank, implying a
short-term Hold rating on the stock.
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