Court Ruled NPS Allowed to Provide Distant Network Programming

Official Press Release -

National Programming Service’s Right to Sell Distant Network Programming
Upheld by Federal Court of Appeals

INDIANAPOLIS – In a unanimous opinion issued today, the Eleventh Circuit Court of Appeals upheld Indianapolis-based National Programming Service (NPS), LLC’s right to lease satellite equipment from EchoStar Communications Corporation (EchoStar) and retransmit distant network programming under the Satellite Home Viewer’s Act (SHVA).

The SHVA permits satellite carriers, such as NPS, a compulsory, statutory license to engage in secondary transmissions (or retransmissions) of copyrighted distant network programming to so-called “unserved households”—households that are unable to receive network programming at a specified level of intensity through the use of conventional rooftop antennas.

“We are extraordinarily pleased with the ruling,” said Michael Mountford, chief executive officer of NPS. “We believe the Court’s opinion vindicates our legitimate right to engage in the secondary transmission market.”

NPS has 104 employees and retransmits distant networking programming to over 110,000 unserved households nationwide.

This case dates back to the 1990s when EchoStar began providing satellite television programming to subscribers under the DISH NETWORK brand. In 1998, various television networks including—CBS, ABC, Fox and NBC—and their network affiliates, sued EchoStar in Florida federal court claiming the company was improperly providing distant network programming to served—as opposed to unserved—households. Eventually, an injunction was entered in 2006 that prevented EchoStar from providing distant network programming under the SHVA’s statutory license.

“There are public policy implications in today’s ruling,” explains Todd Vare, a partner in Barnes & Thornburg LLP’s Intellectual Property Department, who argued on behalf of NPS. “If the court had ruled against NPS, the only distant network programming option for unserved households would have been DirecTV, thus creating a monopoly in this industry sector,” added Vare.

NPS, an Indianapolis company that has been in the business of providing satellite services through C-band satellites since 1983, approached EchoStar in 2006 to inquire about leasing its satellite equipment. A deal was reached, which enabled NPS to use EchoStar’s satellite transponder to retransmit distant network programming to unserved households who signed up with NPS.

The networks then accused NPS of violating the previously entered injunction against EchoStar. The Florida federal court sided with NPS, and the networks appealed. The Eleventh Circuit Court of Appeals also sided with NPS.

NPS is privately owned by Mike Mountford and Jon Pardieck. It does business under the trade name All American Direct.com. In addition to the satellite businesses All American Direct.com is an e-commerce retailer offering a wide variety of consumer products including TV’s, Cell phones, Internet and related products.

Please visit www.allamericandirect.com for more information.