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ATLANTA — Federal law does not bar satellite- television provider EchoStar Communications Corp. from leasing a transponder to another company to transmit network signals, a U.S. appeals court ruled this week.
CBS, Fox and other major network affiliate groups sued EchoStar 10 years ago in South Florida to prevent the Douglas County-based company from providing distant-network signals to customers who can receive local affiliates’ broadcasts through regular antennas. EchoStar complied with an injunction that went into effect Dec. 1, 2006, but the company leased a transponder on its satellite to National Programming Service.
The networks challenged the arrangement with NPS, but a three-judge 11th Circuit panel said Monday it is legal.
