U. S. District Court Judge Edward Nottingham in Denver has awarded EchoStar Communications Corp. $5.5 million in a case against a former retailer that conducted itself fraudulently. EchoStar attorneys argued that Sky Cable defrauded EchoStar, breached their contract, set up false accounts, and engaged in a form of piracy called account-packing.
The court ruled that Sky Cable of Pennsylvania improperly sold EchoStar's DISH Network satellite TV services and equipment, in conflict with a retailer agreement that Sky Cable signed with EchoStar in 1997 and re-executed in 1999.
Jim DeFranco, executive vice president of EchoStar, said he was pleased with the verdict. "EchoStar has thousands of legitimate retailers whose loyalty has helped make DISH Network a leader in the subscription TV industry," said DeFranco. "We won't stand by idly while any member of that group attempts to undermine the system that has been so successful for so many people."
Sky Cable, doing business as Sky Marketing, was prohibited from acting as a distributor and selling the services and equipment to any customer other than a residential end-user. In violation of the agreement, Sky Marketing, owned by Alex Shiriaev, sold DISH Network systems to many retailers who planned to resell those systems themselves.
