Paul Gluckman

Complainant Broadband iTV opposes the cable companies’ request for the International Trade Commission to launch a Tariff Act Section 337 patent investigation through the commission’s 100-day early disposition program because that would “prejudice” BBiTV's case, said its response posted Tuesday in docket 337-3616. Altice, Comcast and Charter told the ITC they seek rapid adjudication to determine if BBiTV satisfies the domestic industry requirement of its patent infringement complaint, noting BBiTV bases its entire domestic-industry claims on investments that licensee Dish Network made over a three-week period in December (see 2205100031). That a domestic industry exists “cannot be seriously contested,” responded BBiTV. Dish’s “domestic expenditures” to provide its pay TV service “are made almost entirely to support the products that form the basis of a domestic industry in this investigation,” it said. “Both the facts and the law weigh against the use of the early disposition program for this investigation,” it said. BBiTV alleges set-tops from Altice, Comcast and Charter infringe four patents on VOD and electronic program guide technologies, and it seeks cease and desist and limited exclusion orders against the infringing devices.

If the International Trade Commission opens a Tariff Act Section 337 investigation into Broadband iTV (BBiTV) allegations against Altice, Comcast and Charter, the cable companies want the ITC to use its 100-day early disposition program to determine if BBiTV satisfies the domestic industry requirement of its patent infringement complaint, they said in a filing posted Monday in docket 337-3616. BBiTV alleges set-tops from the three companies infringe four patents on VOD and electronic program guide technologies, and seeks cease and desist and limited exclusion orders against the infringing devices (see 2204280027). An ITC Section 337 complainant must show that a domestic industry exists for its asserted patents or is in the process of being established. “BBiTV does not contribute to any domestic industry in the asserted patents,” but instead relies entirely on investments made by third-party licensee Dish Network, and only between Dec. 10 and Dec. 31, “to support its allegations of a domestic industry,” said the cable companies. ITC case law shows “abbreviated” license periods call into doubt the “sufficiency” of domestic law allegations, they said. BBiTV is “a non-practicing entity that does not make any products on its own,” but rather sues other companies “to extract settlement licenses,” they said. Dish “only recently executed its license to the asserted patents to resolve litigation brought against it by BBiTV,” they said. BBiTV didn’t comment Tuesday, nor did Dish, which isn't a party to BBiTV’s complaint.

AMC Entertainment won’t stop trying to "convince" some of the major streaming services to introduce their movies theatrically, said CEO Adam Aron on a Q1 earnings call Monday. “We have had conversations over the years with Netflix, Amazon and Apple,” he said. “We continue to make it very clear that we would be very pleased to show some of their bigger, better movies. But in doing so, we have to respect our long-standing industry partners, the major studios. We can't have one set of rules for the major studios and a separate set of rules for streamers.” The $187.4 million domestic opening last weekend of Disney's Doctor Strange in the Multiverse of Madness is proof “all those who doubted the consumer appeal of movie theaters” were wrong, said Aron. “We can say to our shareholders with some glee and delight that the resilience of movie theaters is right now on clear display and that the future of the cinema is bright,” he said. Some on Wall Street and in the media “have been filling our heads for two years now about the rise of streaming and the corresponding end of theaters,” he said. “This won't be the first time or the last time that conventional wisdom will be proven to be filled with so much folly.”

With Dish Network’s "spectrum portfolio" and “our rural roots,” there’s “certainly an opportunity” for the company to play in “fixed wireless in rural America,” said Chairman Charlie Ergen on a Q1 earnings call Friday. “We’re watching closely what T-Mobile and Verizon are doing,” he said. “I think it’s very creative in terms of what they’re doing. I think there’s maybe other ways to do it, depending on where you are and the densities you have.” Dish thinks the 12 GHz band, flexible use of which is being considered in an FCC rulemaking, is “the ideal frequency” for fixed wireless, said Ergen. “We’re hopeful the FCC will make some rulings on that,” he said. "In a funny sort of way," there may be more "upside" to fixed wireless than "the belief you have in linear TV," he said. Dish lost about 228,000 satellite TV subscribers in Q1, said CEO Erik Carlson on the call. "We still remain focused on acquiring and maintaining long-term, profitable customers, and we continue to play where we're strongest, in rural America, with higher-credit-quality subscribers," he said. Dish has an Analyst Day event scheduled for Tuesday in Las Vegas, its first 5G commercial deployment (see 2205040057).

Dish Network doesn’t think it needs to ask for an "extension” of its FCC deadline to bring coverage of its mobile 5G network to 20% of the U.S. population by mid-June, said Chairman Charlie Ergen on a Q1 earnings call Friday. “We’re still on track” to meet the deadline, he said, conceding “we’re not spiking the football yet.”

Considering the challenges facing eBay customers globally, “we are pleased with our performance to start the year,” said CEO Jamie Iannone on a Q1 earnings call Wednesday. Revenue in the quarter declined 6% to $2.48 billion. Since late February, when the war in Ukraine began, “we have seen lower e-commerce traffic,” said Iannone. Inflation in gas prices and home energy costs and “historically low consumer confidence,” especially in the U.K. and Germany, further impeded demand, he said. “We expect more near-term headwinds to e-commerce growth rates this year.” EBay said it’s waiving Ukrainian seller fees, and protecting sellers from late shipment penalties. It’s also matching employee donations to organizations supporting Ukraine. EBay’s international business “has experienced softer economic growth and greater exposure to the supply chain challenges impacting cross-border trade,” said Chief Financial Officer Steve Priest.

Disclosures that Netflix lost 200,000 subscribers in Q1, sending the stock plunging more than 35% in a single day last month (see 2204200002), sparked a securities fraud complaint Monday in U.S. District Court in San Francisco that seeks class-action status. Plaintiff Fiyyaz Pirani, as trustee of Netflix shareholder Imperium Irrevocable Trust, accuses co-CEOs Reed Hastings and Ted Sarandos and Chief Financial Officer Spencer Neumann of making “materially false and/or misleading statements" to investors before the April 19 earnings report “because they failed to disclose material adverse information and/or misrepresented the truth about Netflix’s business,” said the complaint. Senior executives “failed to disclose to investors” that Netflix was “exhibiting slower acquisition growth” due to subscribers’ account-sharing and increased competition from other streaming services, it said. “As a result of these materially false and/or misleading statements, and/or failures to disclose, Netflix’s securities traded at artificially inflated prices,” it said. The executives’ “wrongful acts and omissions,” and the “precipitous decline” of the Netflix stock, caused members of the potential class to suffer “significant losses and damages,” it said. Netflix didn’t comment Wednesday. U.S. District Judge Susan Illston in San Francisco granted Pirani's motion in January 2020 to be made lead plaintiff in a similar September 2019 securities fraud complaint against Slack and its top executives that's still pending.

COVID-19 lockdowns in Shanghai and the war in Ukraine demonstrate “that the world needs more resilient and more geographically balanced semiconductor manufacturing,” said Intel CEO Pat Gelsinger on an earnings call Thursday for fiscal Q1 ended April 2. The chip shortage cost the U.S. economy $240 billion last year, “and we expect the industry will continue to see challenges until at least 2024 in areas like foundry capacity and tool availability,” he said.

Pearl TV Managing Director Anne Schelle expects the NextGenTV logo for ATSC 3.0-compliant TVs to become “widely adopted,” she said on a prerecorded NAB Show video preview that debuted Monday on ATSC’s YouTube channel. “Once we get past 80% household penetration” on 3.0-compliant sets, “you’ll see some of the big-box retailers really jumping in” to promote and support the logo, Schelle told ATSC President Madeleine Noland in an interview on the video. “More and more consumers, with our advertising, are going in the store and they’re asking for NextGen. The more that happens, the more you’ll see the logo out there.” Schelle sees the industry “doubling down” on 3.0 marketing in 2022 and into 2023” she said. “It’s incredibly important that we get that message out there, to let consumers know. We need that consumer pull. That consumer pull drives retailers, talks to the TV manufacturers.” The industry needs to “get to scale as fast as we possibly can, because that then brings in the opportunities” for broadcasters' return on investment, said Schelle. “From there, I think you’ll see a lot of the activity around datacasting, which is a longer-term play, but it’s definitely a viable play,” she said. “We need to have a really successful television play in order to get to that datacasting play.”

Ericsson will record “extraordinary costs” of about 900 million Swedish krona ($94.3 million) from its decision to suspend its “effective business in Russia indefinitely,” said CEO Borje Ekholm on a Q1 earnings call Thursday.