DISH Disputes FOX Suit on Fees

[Gregg Lengling]

FOX Sports Networks, backed by media giant and DirecTV parent News Corp.., has filed a lawsuit against EchoStar claiming that the satellite TV company owes it a reported $25 million in fees for carrying its 12 regional sports channels.

EchoStar disputed FOX's litigation, suggesting it could be a ploy to target a satellite TV competitor.

On Tuesday, the Los Angeles Times reported the FOX suit, and that Fox is suggesting a $10.3 million payment from EchoStar could be a miscalculation by the satellite TV company of its subscriber base for 2002. EchoStar could owe FOX an additional $25 million if it made the same mistake in 2000 and 2001, the paper said.

EchoStar said it will contest FOX's assertion.

EchoStar spokesperson Steve Caulk said, "We have consistently made the payments due to Fox Sports under our contract. We believe this lawsuit is more about News Corp. - the owner of Fox Sports - trying to unfairly leverage a competitor to their DirecTV division, and we intend to defend vigorously our compliance with the contract."

The Times said FOX has asked in its lawsuit for an explanation from EchoStar or for the company to open its books for examination, a requirement under their contract.