Court OKs EchoStar Distant Signal Deal

In a setback for the broadcast networks and their affiliates, the US Court of Appeals for the 11th Circuit (Alabama, Georgia and Florida) ruled that EchoStar is not in violation of an injunction barring it from distributing distant broadcast signals to its satellite TV subscribers. "Put simply, EchoStar is out of the distant network programming business," the court's opinion reads. Two years ago, the same court enjoined EchoStar from the distant signal business after finding that the satellite carrier had repeatedly violated rules against offering distant network affiliates in areas where subscribers could receive local affiliates off air. But just before the injunction when into effect, EchoStar leased a satellite transponder to a third party, NPS, that would continue to provide a distant signal service to EchoStar subscribers. The broadcasters charged in a federal district court that EchoStar was using the NPS arrangement to circumvent the injunction. But the court disagreed, saying the networks failed to show the arrangement was "anything but an arms-length business transaction."
http://www.tvnewsday.com/articles/2008/07/08/daily.6/