Dish ruled to have illicitly withheld $20 million from CNN, but the judge has some questions about what is meant by 'news.'
At issue is a provision of the parties' affiliation agreement, signed in 2009 and renewed in 2015, that allowed Dish to distribute CNN on its service. The deal spelled out how Dish would calculate monthly license fees for CNN. Specifically, the agreement permitted Dish to pay for CNN based on CNN subscribers, rather than total Dish subscribers, unless another 24-hour per day news service came along that was more widely distributed on Dish's satellite service.
To recover $20 million, Dish engaged in self-help. CNN went two accounting months without any license payment from Dish. After that, Dish paid reduced monthly fees for CNN until it had fully recovered the claimed overpayment. Dish then resumed paying the full CNN monthly license fee, but using the number of CNN subscribers instead of the number of total Dish subscribers in the calculation.
She writes that Dish "cannot now claim, after years of voluntary payments, that it is entitled to recoup fees that it was solely responsible for calculating based on its own understanding of its obligations under the Agreement." But then moving onto the controversy about what Dish has been paying since April 2017, the judge finds some ambiguity about what the contract means.
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