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Court denies Dish a stay

Justice refuses to block distant network signal shut-off imposed in May

Joyzelle Davis, Rocky Mountain News

Published August 23, 2006 at midnight

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The U.S. Supreme Court on Tuesday dealt a blow to EchoStar's Dish Network in a decision that means the satellite broadcaster must stop offering distant channels to thousands of subscribers.

The rejection by Justice Clarence Thomas, who handles emergency requests out of the 11th U.S. Circuit Court of Appeals in Atlanta, essentially removes EchoStar's last hope of delaying the shut-off of "distant network transmissions," such as sending signals from New York City stations to customers in Denver.

EchoStar says less than 10 percent of Dish Network's nearly 12.5 million subscribers receive network station signals from outside their home markets.

The company has reached accords with ABC, NBC, CBS and other station groups during the nearly nine-year dispute but hasn't been able to reach agreements with Fox and independent station groups.

Douglas County-based EchoStar said in a statement that the court's denial of its stay request was "not unexpected," noting that the high court grants stays "in only a very small percentage" of cases.

In the company's emergency appeal, EchoStar had argued that it faces "irreparable harm" because customers who will be deprived of access to network broadcasting programming while the justices consider whether to hear the company's appeal are likely to cancel their Dish Network service and may not return even if EchoStar wins.

The appeals court in May ordered EchoStar to shut down its signals, saying the company had engaged in a pattern of offering those signals to customers who aren't eligible under federal law. The dispute dates to 1998, when the National Association of Broadcasters sued the company for making signals available to homes that could receive signals through other means.

The company said it continues to negotiate with broadcasters who haven't settled, and it will attempt to avoid "unnecessary disruption" to customers who watch distant network channels.

EchoStar said it must file its appeal with the Supreme Court challenging the court rulings by Oct. 17, which means the justices won't act on the standard court appeal until late fall.

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