PUBLIC VERSION
%HIRUH WKH )('(5$/ &20081,&$7,216 &200,66,21 :DVKLQJWRQ '&
',5(&79 //& $1' $7 7 6(59,&(6 ,1&
&RPSODLQDQWV
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
'HIHQGDQWV
9(5,),(' &203/$,17 2) ',5(&79 //& $1' $7 7 6(59,&(6 ,1& )25 7+( 67$7,21 *52836¶ )$,/85( 72 1(*27,$7( ,1 *22' )$,7+ PUBLIC VERSION
6HDQ $ /HY &DWK\ &DUSLQR .HYLQ - 0LOOHU &KULVWRSKHU 0 +HLPDQQ 0DWWKHZ 0 'XII\ *DU\ / 3KLOOLSV .(//2** +$16(1 72'' 'DYLG / /DZVRQ ),*(/ )5('(5,&. 3//& $7 7 6(59,&(6 ,1& 0 6WUHHW 1: 6XLWH WK 6WUHHW 1: 6XLWH :DVKLQJWRQ '& :DVKLQJWRQ '&
Counsel for DIRECTV, LLC and AT&T Services, Inc.
-XQH PUBLIC VERSION
6800$5<
,Q IODJUDQW YLRODWLRQ RI WKH &RPPLVVLRQ¶V UXOHV QLQH VWDWLRQ JURXSV WKH ³6WDWLRQ
*URXSV´ KDYH VLPSO\ UHIXVHG WR QHJRWLDWH UHWUDQVPLVVLRQ FRQVHQW ZLWK ',5(&79 DQG $7 7
6HUYLFHV FROOHFWLYHO\ ³$7 7´ IRU PRQWKV RQ HQG ,QGHHG WKH 6WDWLRQ *URXSV HDFK RI ZKLFK
DSSHDUV WR EH PDQDJHG DQG FRQWUROOHG E\ 6LQFODLU %URDGFDVW *URXS ³6LQFODLU´ KDYH >%(*,1
&21),'(17,$/@ >(1'
&21),'(17,$/@ UHWUDQVPLVVLRQ SURSRVDOV 7KH 6WDWLRQ *URXSV UHIXVHG WR UHVSRQG HYHQ after WKHLU >%(*,1 &21),'(17,$/@ >(1' &21),'(17,$/@ DJUHHPHQWV ZLWK
$7 7 H[SLUHG DQG WKH\ ZHQW GDUN (YHQ QRZ LQ WKH PLGVW RI RQJRLQJ FXVWRPHU EODFNRXWV WKH
6WDWLRQ *URXSV still UHIXVH WR QHJRWLDWH DJUHHPHQWV WKDW ZRXOG SHUPLW $7 7 WR UHVXPH
UHWUDQVPLVVLRQ RI WKHVH VWDWLRQV WR FXVWRPHUV DFURVV WKH FRXQWU\ 7KLV PLVFRQGXFW YLRODWHV ERWK
WKH OHWWHU DQG WKH LQWHQW RI WKH &RPPLVVLRQ¶V per se JRRGIDLWK UXOHV ² LQGHHG LW LV MXVW WKLV NLQG
RI JDPHVPDQVKLS WKDW WKH UXOHV DUH GHVLJQHG WR SUHYHQW ² DQG KDV JHQHUDWHG DQG FRQWLQXHV WR
JHQHUDWH HQRUPRXV FRQVXPHU KDUP
1RWDEO\ WKH RVWHQVLEO\ LQGHSHQGHQW 6WDWLRQ *URXSV DOO KDYH GHHS WLHV WR 6LQFODLU
>%(*,1 +,*+/< &21),'(17,$/@
>(1'
+,*+/< &21),'(17,$/@ 7KHVH FORVHO\ UHODWHG 6WDWLRQ *URXSV UHIXVHG WR HQJDJH LQ DQ\
QHJRWLDWLRQV ZLWK $7 7 DW DOO EHIRUH QHDUO\ DOO WKHLU VWDWLRQV ZHQW GDUN >%(*,1
&21),'(17,$/@
See 6LQFODLU %URDGFDVW *URXS ,QF )RUP . DW ILOHG 0DU IRU ILVFDO \HDU HQGLQJ 'HF H[SODLQLQJ UHODWLRQVKLSV WKURXJK MRLQW VDOHV ORFDO PDUNHWLQJ DQG RWKHU DJUHHPHQWV ZLWK WKH 6WDWLRQ *URXSV¶ VWDWLRQV See &)5 E L Y UHTXLULQJ EURDGFDVWHUV WR QHJRWLDWH DQG UHVSRQG WR SURSRVDOV
L PUBLIC VERSION
>(1' &21),'(17,$/@ 7KLV FRPPRQ UHIXVDO WR QHJRWLDWH
LV D FOHDU YLRODWLRQ RI WKH &RPPLVVLRQ¶V UXOHV GHVLJQHG WR GULYH XS WKH IHHV $7 7 FROOHFWLYHO\
SD\V WR UHWUDQVPLW WKHLU VLJQDOV >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/<
&21),'(17,$/@ 7KH 6WDWLRQ *URXSV¶ XQUHDVRQDEOH GHOD\ FRQVWLWXWHV DQRWKHU per se YLRODWLRQ
$OWHUQDWLYHO\ HYHQ LI WKH 6WDWLRQ *URXSV¶ WDFWLFV GLG QRW HVWDEOLVK DQ\ per se YLRODWLRQ
WKH\ ZRXOG FRQVWLWXWH D IDLOXUH WR QHJRWLDWH LQ JRRG IDLWK XQGHU WKH WRWDOLW\RIWKHFLUFXPVWDQFHV
WHVW See &)5 E 7KH 6WDWLRQ *URXSV KDYH PDGH QHJRWLDWLRQV LPSRVVLEOH
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@
See id. E LLL UHTXLULQJ QHJRWLDWLRQ DW UHDVRQDEOH WLPHV DQG ZLWKRXW XQUHDVRQDEOH GHOD\V See 0HPRUDQGXP 2SLQLRQ DQG 2UGHU Northwest Broad., L.P. v. DIRECTV, LLC )&& 5FG &KLHI 0HGLD %XU ³QRW QHFHVVDU\ RU SURSHU WR FRPSHO ',5(&79 WR SURYLGH LWV FRQILGHQWLDO UHWUDQVPLVVLRQ FRQVHQW DJUHHPHQWV´ 0HPRUDQGXP 2SLQLRQ DQG 2UGHU
LL PUBLIC VERSION
7KLV VWUDWHJ\ KDV LQIOLFWHG ² DQG FRQWLQXHV WR LQIOLFW ² VLJQLILFDQW KDUP RQ FRQVXPHUV
7KH RQJRLQJ EODFNRXWV DUH not GXH WR DQ\ LPSDVVH RYHU VSHFLILF VXEVWDQWLYH WHUPV EXW UDWKHU DUH
D GLUHFW UHVXOW RI WKH 6WDWLRQ *URXSV¶ VWUDWHJLF GHOD\ DQG UHIXVDO WR QHJRWLDWH &RQVXPHUV DUH WKXV
EHDULQJ WKH EUXQW RI WKH 6WDWLRQ *URXSV¶ XQODZIXO WDFWLFV DJDLQVW $7 7 6XFK WDFWLFV DUH
XQODZIXO XQGHU WKH WRWDOLW\RIWKHFLUFXPVWDQFHV WHVW
$7 7 VHHNV DQ 2UGHU L GHFODULQJ WKDW HDFK 6WDWLRQ *URXS KDV IDLOHG WR QHJRWLDWH LQ
JRRG IDLWK XQGHU WKH &RPPXQLFDWLRQV $FW RI DQG WKH &RPPLVVLRQ¶V UXOHV LL FRPSHOOLQJ
HDFK 6WDWLRQ *URXS WR LPPHGLDWHO\ >%(*,1 &21),'(17,$/@ >(1'
&21),'(17,$/@ QHJRWLDWH LQ JRRG IDLWK IRU WKH UHWUDQVPLVVLRQ RI LWV 6WDWLRQV¶ VLJQDOV
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ LLL LPSRVLQJ IRUIHLWXUHV RQ HDFK
6WDWLRQ *URXS SXUVXDQW WR 6HFWLRQ RI WKH &RPPLVVLRQ¶V UXOHV DV WKH &RPPLVVLRQ GHHPV
DSSURSULDWH DQG LY DZDUGLQJ $7 7 RWKHU DQG IXUWKHU UHOLHI WKDW WKH &RPPLVVLRQ GHHPV MXVW
DQG SURSHU *LYHQ WKH RQJRLQJ VHUYLFH LQWHUUXSWLRQV $7 7 UHVSHFWIXOO\ UHTXHVWV H[SHGLWHG
WUHDWPHQW RI WKLV &RPSODLQW
Mediacom Commc’ns Corp. v. Sinclair Broad. Grp., Inc. )&& 5FG &KLHI 0HGLD %XU UHMHFWLQJ DUJXPHQW WKDW 6LQFODLU ZDV UHTXLUHG WR GLVFORVH ³WKH DPRXQWV LW KDV DJUHHG WR UHFHLYH LQ ORQJWHUP UHWUDQVPLVVLRQ FRQVHQW DJUHHPHQWV ZLWK RWKHU VLPLODUO\ VLWXDWHG RU ODUJHU FDEOH FRPSDQLHV´
LLL PUBLIC VERSION
7$%/( 2) &217(176 3DJH
6800$5< L
-85,6',&7,21
7+( &203/$,1$176
7+( '()(1'$176
67$7(0(17 2) )$&76
$ >%(*,1 +,*+/< &21),'(17,$/@ >(1' +,*+/< &21),'(17,$/@
% >%(*,1 &21),'(17,$/@ >(1' &21),'(17,$/@
& 7KH 6WDWLRQ *URXSV ,JQRUHG $7 7¶V ,QGLYLGXDOL]HG 3URSRVDOV DQG 5HIXVHG 7R 1HJRWLDWH
' $7 7 6HQW WKH 6WDWLRQ *URXSV $QRWKHU 3URSRVDO :KLFK 7KH\ $JDLQ ,JQRUHG
( >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@
) 7KH ([LVWLQJ $JUHHPHQWV ([SLUHG 6WDWLRQV :HQW 'DUN DQG WKH 6WDWLRQ *URXSV Still 5HIXVHG 7R 5HVSRQG
* >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@
+ >%(*,1 &21),'(17,$/@ >(1' &21),'(17,$/@
&2817 , ± 3(5 6( 9,2/$7,216
$ 7KH 6WDWLRQ *URXSV¶ 5HIXVDO 7R 1HJRWLDWH
% 7KH 6WDWLRQ *URXSV¶ )DLOXUH 7R 5HVSRQG WR $7 7¶V 3URSRVDOV
& 7KH 6WDWLRQ *URXSV¶ 5HIXVDO 7R 1HJRWLDWH DW 5HDVRQDEOH 7LPHV DQG :LWKRXW 8QUHDVRQDEO\ 'HOD\LQJ $JUHHPHQW
LY PUBLIC VERSION
&2817 ,, ± 727$/,7< 2) 7+( &,5&8067$1&(6
5(48(67 )25 5(/,()
5(48(67 )25 (;3(',7(' 75($70(17
9(5,),&$7,21
'(&/$5$7,21 2) /,1'$ %85$.2))
'(&/$5$7,21 2) +21*)(1* '$,
'(&/$5$7,21 2) '$//,$ .,0
'(&/$5$7,21 2) 0,&+$(/ 3$&(
&(57,),&$7( 2) 6(59,&(
Y PUBLIC VERSION
%HIRUH WKH )('(5$/ &20081,&$7,216 &200,66,21 :DVKLQJWRQ '&
',5(&79 //& $1' $7 7 6(59,&(6 ,1&
&RPSODLQDQWV
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
'HIHQGDQWV
9(5,),(' &203/$,17 2) ',5(&79 //& $1' $7 7 6(59,&(6 ,1& )25 7+( 67$7,21 *52836¶ )$,/85( 72 1(*27,$7( ,1 *22' )$,7+
',5(&79 //& ³',5(&79´ DQG $7 7 6HUYLFHV ,QF ³8YHUVH´ DQG ZLWK
',5(&79 ³$7 7´ EULQJ WKLV &RPSODLQW IRU IDLOXUH WR QHJRWLDWH LQ JRRG IDLWK DJDLQVW QLQH PUBLIC VERSION
VWDWLRQ JURXSV WKH ³6WDWLRQ *URXSV´ ² 'HHUILHOG 0HGLD ,QF DQG FHUWDLQ DIILOLDWHG HQWLWLHV
FROOHFWLYHO\ ³'HHUILHOG´ *R&RP 0HGLD RI ,OOLQRLV //& ³*R&RP´ +RZDUG 6WLUN +ROGLQJV
//& DQG FHUWDLQ DIILOLDWHG HQWLWLHV FROOHFWLYHO\ ³+RZDUG 6WLUN´ 0HUFXU\ %URDGFDVWLQJ
&RPSDQ\ ,QF ³0HUFXU\´ FHUWDLQ 036 0HGLD HQWLWLHV FROOHFWLYHO\ ³036´ 1DVKYLOOH
/LFHQVH +ROGLQJV //& ³1DVKYLOOH´ .075 7HOHYLVLRQ //& ³5REHUWV´ 6HFRQG *HQHUDWLRQ
RI ,RZD /7' ³6HFRQG *HQHUDWLRQ´ DQG :DLWW %URDGFDVWLQJ ,QF ³:DLWW´
7KH 6WDWLRQ *URXSV RZQ WKH ORFDO EURDGFDVW WHOHYLVLRQ VWDWLRQV WKH ³6WDWLRQV´
LGHQWLILHG EHORZ
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
'HHUILHOG 0HGLD 3RUW $UWKXU /LFHQVHH //& 'HHUILHOG 0HGLD &LQFLQQDWL /LFHQVHH //& 'HHUILHOG 0HGLD 0RELOH /LFHQVHH //& 'HHUILHOG 0HGLD 5RFKHVWHU /LFHQVHH //& DQG 'HHUILHOG 0HGLD 6DQ $QWRQLR /LFHQVHH //& +6+ )OLQW :(<, /LFHQVHH //& DQG +6+ 0\UWOH %HDFK ::0% /LFHQVHH //& 036 0HGLD RI 7HQQHVVHH /LFHQVHH //& 036 0HGLD RI *DLQHVYLOOH /LFHQVHH //& 036 0HGLD RI 7DOODKDVVHH /LFHQVHH //& DQG 036 0HGLD RI 6FUDQWRQ /LFHQVHH //&
PUBLIC VERSION
:LONHV %DUUH 036 0HGLD RI 6FUDQWRQ /LFHQVHH //& 6FUDQWRQ 3$ :6:% &: 1DVKYLOOH /LFHQVH +ROGLQJV //& 1DVKYLOOH 71 :1$% &: .075 7HOHYLVLRQ //& (XJHQH 25 .075 1%& 6HFRQG *HQHUDWLRQ RI ,RZD /7' &HGDU 5DSLGV ,$ .);$ )2; :DLWW %URDGFDVWLQJ ,QF 6LRX[ &LW\ ,$ .0(* &%6
$7 7 DQG WKH 6WDWLRQ *URXSV HDFK HQWHUHG LQWR UHWUDQVPLVVLRQ FRQVHQW
DJUHHPHQWV >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ WR H[SLUH RQ
0D\ IRU DOO EXW WKUHH RI WKH 6WDWLRQV DQG RQ -XQH IRU WKRVH WKUHH 7KH H[LVWLQJ
DJUHHPHQW ODSVHG DQG $7 7¶V ULJKWV WR UHWUDQVPLW WKH 6WDWLRQV¶ VLJQDOV ZHUH WHUPLQDWHG RQ
WKRVH GDWHV $FFRUGLQJO\ ',5(&79 DQG 8YHUVH VXEVFULEHUV KDYH EHHQ GHQLHG DFFHVV WR WKH
6WDWLRQV¶ FRQWHQW IRU PRUH WKDQ WZR ZHHNV See .LP 'HFO 3DFH 'HFO 'DL 'HFO
7KHVH EODFNRXWV DUH WKH GLUHFW UHVXOW RI >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ HDFK RI ZKLFK DSSHDUV WR EH
$7 7 KDV QRW LQFOXGHG WKH H[LVWLQJ UHWUDQVPLVVLRQ DJUHHPHQWV GUDIWV RI SURSRVDOV RU HPDLOV EHWZHHQ $7 7 DQG >%(*,1 &21),'(17,$/@ >(1' &21),'(17,$/@ DV H[KLELWV WR WKLV &RPSODLQW EHFDXVH $7 7 LQWHQGV WR PDLQWDLQ WKH FRQILGHQWLDOLW\ RI WKH LQIRUPDWLRQ FRQWDLQHG WKHUHLQ 1HYHUWKHOHVV WKH SHUWLQHQW WHUPV DQG GHWDLOV QHFHVVDU\ WR WKH &RPPLVVLRQ¶V GHFLVLRQ DUH GHVFULEHG RU TXRWHG KHUHLQ ,I WKH &RPPLVVLRQ ZRXOG ILQG DQ\ GRFXPHQW UHIHUHQFHG KHUHLQ XVHIXO $7 7 ZLOO SURPSWO\ VXEPLW LW VXEMHFW WR DQ\ SURWHFWLYH RUGHU WKH &RPPLVVLRQ HQWHUV LQ WKLV PDWWHU &RQWHPSRUDQHRXV ZLWK WKLV ILOLQJ $7 7 LV ILOLQJ D UHTXHVW IRU HQWU\ RI VXFK DQ RUGHU 7KH WKUHH 6WDWLRQV WKDW ZHQW GDUN RQ -XQH ZHUH +RZDUG 6WLUN¶V 0\UWOH %HDFK 6WDWLRQ DQG WKH 0HUFXU\ DQG 1DVKYLOOH 6WDWLRQV See 'DL 'HFO 3DFH 'HFO 7KH IDFWV GHVFULEHG LQ WKLV &RPSODLQW DUH EDVHG RQ WKH SHUVRQDO NQRZOHGJH RI $7 7 QHJRWLDWRUV /LQGD %XUDNRII 'DOOLD .LP 0LFKDHO 3DFH DQG +RQJIHQJ -XOLD 'DL DV VWDWHG LQ WKHLU GHFODUDWLRQV GDWHG -XQH DQG DV LQGLFDWHG E\ UHIHUHQFHV WR WKRVH GHFODUDWLRQV KHUHLQ
PUBLIC VERSION
PDQDJHG DQG FRQWUROOHG E\ 6LQFODLU %URDGFDVW *URXS ³6LQFODLU´ >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/<
&21),'(17,$/@ 7KH DSSDUHQW JRDO >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ LV WKXV WR H[WUDFW UDWHV IRU VXSSRVHGO\ LQGHSHQGHQW 6WDWLRQ
*URXSV WKDW EHDU QR UHODWLRQVKLS WR WKHLU LQGLYLGXDO SRUWIROLR RI VWDWLRQV LQ RUGHU WR EHQHILW
6LQFODLU $OO RI WKLV FRPHV DW WKH H[SHQVH RI FRQVXPHUV ZKR DUH VXIIHULQJ EODFNRXWV DV WKH RWKHU
6WDWLRQ *URXSV still UHIXVH WR QHJRWLDWH D GHDO See .LP 'HFO %XUDNRII 'HFO
7KH 6WDWLRQ *URXSV¶ VWUDWHJ\ YLRODWHV WKH PRVW IXQGDPHQWDO UHTXLUHPHQW RI WKH
&RPPLVVLRQ¶V JRRGIDLWK UXOHV WKH\ KDYH VLPSO\ UHIXVHG WR QHJRWLDWH 6SHFLILFDOO\ $7 7 VHQW
VHSDUDWH GUDIW DPHQGHG UHWUDQVPLVVLRQ FRQVHQW DJUHHPHQWV WR HDFK RI WKH 6WDWLRQ *URXSV
FRQWDLQLQJ SURSRVHG UHQHZDO WHUPV LQ 0DUFK See .LP 'HFO 'DL 'HFO 3DFH 'HFO
7R WKLV GD\ QRQH RI WKH 6WDWLRQ *URXSV KDV GLUHFWO\ RU PHDQLQJIXOO\ UHVSRQGHG WR WKHVH
SURSRVDOV 7KH\ KDYH QHYHU VWDWHG ZKHWKHU WKH\ UHMHFW SDUWLFXODU $7 7 WHUPV KDYH QHYHU SXW
IRUZDUG D SURSRVDO RI WKHLU RZQ >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ HYHQ ZKLOH EODFNRXWV DUH
RQJRLQJ See .LP 'HFO 3DFH 'HFO %XUDNRII 'HFO (DFK 6WDWLRQ *URXS LV YLRODWLQJ
VHYHUDO RI WKH &RPPLVVLRQ¶V per se SURKLELWLRQV LQFOXGLQJ WKH EDUV RQ UHIXVLQJ WR QHJRWLDWH see
&)5 E L UHIXVLQJ WR UHVSRQG WR SURSRVDOV id. E Y DQG UHIXVLQJ WR
PUBLIC VERSION
QHJRWLDWH DW ³UHDVRQDEOH WLPHV´ RU DFWLQJ LQ D PDQQHU WKDW ³XQUHDVRQDEO\ GHOD\V´ UHWUDQVPLVVLRQ
FRQVHQW QHJRWLDWLRQV id. E LLL
,Q WKH DOWHUQDWLYH WKH FRPELQDWLRQ RI WKH IRUHJRLQJ PLVFRQGXFW DQG WKH 6WDWLRQ
*URXSV¶ RYHUDOO QHJRWLDWLRQ VWUDWHJ\ LI QRW per se YLRODWLRQV FOHDUO\ FRQWUDYHQH WKH WRWDOLW\RI
WKHFLUFXPVWDQFHV JRRGIDLWK QHJRWLDWLRQ VWDQGDUG &)5 E 1RW RQO\ KDV WKH
6WDWLRQ *URXSV¶ >%(*,1 &21),'(17,$/@ >(1'
&21),'(17,$/@ VWUDWHJ\ KDUPHG FRQVXPHUV E\ PDNLQJ QHJRWLDWLRQV LPSRVVLEOH DQG EODFNRXWV
LQHYLWDEOH EXW LW DOVR UHTXLUHV >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ See %XUDNRII 'HFO
,QGHHG LW LV QRZ FOHDU WKDW WKH 6WDWLRQ *URXSV DUH FRPSOHWHO\ XQZLOOLQJ WR
QHJRWLDWH >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@
>%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ >%(*,1
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ See 'DL 'HFO 3DFH 'HFO
PUBLIC VERSION
&21),'(17,$/@
>(1'
&21),'(17,$/@ See .LP 'HFO 3DFH 'HFO
$Q\ RI WKHVH WDFWLFV DORQH DQG FHUWDLQO\ DOO RI WKHP LQ FRPELQDWLRQ FRQVWLWXWH
³VXIILFLHQWO\ RXWUDJHRXV´ FRQGXFW WR YLRODWH WKH &RPPLVVLRQ¶V JRRGIDLWK UXOHV XQGHU WKH
WRWDOLW\RIWKHFLUFXPVWDQFHV WHVW )LUVW 5HSRUW DQG 2UGHU Implementation of the Satellite Home
Viewer Improvement Act of 1999; Retransmission Consent Issues: Good Faith Negotiation and
Exclusivity )&& 5FG ³Good-Faith Order´ see &)5 E
$FFRUGLQJO\ $7 7 UHVSHFWIXOO\ UHTXHVWV SXUVXDQW WR &)5 F DQG
DQ 2UGHU L GHFODULQJ WKDW HDFK 6WDWLRQ *URXS KDV IDLOHG WR QHJRWLDWH LQ JRRG IDLWK XQGHU
WKH &RPPXQLFDWLRQV $FW RI DQG WKH &RPPLVVLRQ¶V UXOHV LL FRPSHOOLQJ HDFK 6WDWLRQ
*URXS WR LPPHGLDWHO\ >%(*,1 &21),'(17,$/@ >(1' &21),'(17,$/@
QHJRWLDWH LQ JRRG IDLWK IRU WKH UHWUDQVPLVVLRQ RI LWV 6WDWLRQV¶ VLJQDOV >%(*,1
&21),'(17,$/@
>(1' &21),'(17,$/@ LLL LPSRVLQJ IRUIHLWXUHV RQ HDFK 6WDWLRQ *URXS
>%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ See .LP 'HFO %XUDNRII 'HFO
PUBLIC VERSION
SXUVXDQW WR 6HFWLRQ RI WKH &RPPLVVLRQ¶V UXOHV DV WKH &RPPLVVLRQ GHHPV DSSURSULDWH DQG
LY DZDUGLQJ $7 7 RWKHU DQG IXUWKHU UHOLHI WKDW WKH &RPPLVVLRQ GHHPV MXVW DQG SURSHU
%HFDXVH WKH H[LVWLQJ UHWUDQVPLVVLRQ FRQVHQW DJUHHPHQW EHWZHHQ $7 7 DQG WKH
6WDWLRQ *URXSV H[SLUHG RQ 0D\ RU -XQH DQG WKH 6WDWLRQV KDYH EHHQ GDUN
VLQFH WKRVH WLPHV $7 7 UHVSHFWIXOO\ UHTXHVWV H[SHGLWHG WUHDWPHQW RI WKLV &RPSODLQW See Good-
Faith Order UHTXLULQJ UHVROXWLRQ RI JRRGIDLWK FRPSODLQWV ³LQ DQ H[SHGLWLRXV PDQQHU´
-85,6',&7,21
7KH &RPPLVVLRQ KDV MXULVGLFWLRQ WR FRQVLGHU WKLV &RPSODLQW XQGHU 86&
E & LL &)5 DQG &)5
7+( &203/$,1$176
',5(&79 KDV DSSUR[LPDWHO\ PLOOLRQ VXEVFULEHUV DOO RI ZKRP UHFHLYH
PXOWLSOH FKDQQHOV RI GLJLWDO YLGHR SURJUDPPLQJ $FFRUGLQJO\ ',5(&79 LV D ³PXOWLFKDQQHO
YLGHR SURJUDPPLQJ GLVWULEXWRU´ ³093'´ DV WKDW WHUP LV XVHG LQ &)5 D
8YHUVH KDV DSSUR[LPDWHO\ PLOOLRQ VXEVFULEHUV DOO RI ZKRP UHFHLYH PXOWLSOH
FKDQQHOV RI GLJLWDO YLGHR SURJUDPPLQJ $FFRUGLQJO\ 8YHUVH LV DQ 093' DV WKDW WHUP LV XVHG
LQ &)5 D
See $7 7 ,QF )RUP . DW 3') ILOHG )HE IRU ILVFDO \HDU HQGLQJ 'HF See id.
PUBLIC VERSION
7+( '()(1'$176
'HHUILHOG 0HGLD ,QF 'HHUILHOG 0HGLD 3RUW $UWKXU /LFHQVHH //& 'HHUILHOG
0HGLD &LQFLQQDWL /LFHQVHH //& 'HHUILHOG 0HGLD 0RELOH /LFHQVHH //& 'HHUILHOG
0HGLD 5RFKHVWHU /LFHQVHH //& DQG 'HHUILHOG 0HGLD 6DQ $QWRQLR /LFHQVHH //&
FROOHFWLYHO\ ³'HHUILHOG´ RZQ DQG FRQWURO VHYHQ 6WDWLRQV OLVWHG LQ DERYH $7 7 LV
VHHNLQJ UHWUDQVPLVVLRQ FRQVHQW WR FDUU\ HDFK RI WKHVH 6WDWLRQV See .LP 'HFO 7KH
'HHUILHOG HQWLWLHV DUH WKHUHIRUH ³WHOHYLVLRQ EURDGFDVW VWDWLRQV´ ZLWK UHVSHFW WR WKHLU UHWUDQVPLVVLRQ
FRQVHQW QHJRWLDWLRQV DV WKDW WHUP LV XVHG LQ &)5 DQG 'HHUILHOG DQG $7 7 DUH
³QHJRWLDWLQJ HQWLWLHV´ IRU SXUSRVHV RI WKRVH UXOHV
*R&RP 0HGLD RI ,OOLQRLV //& ³*R&RP´ RZQV DQG RSHUDWHV WKUHH 6WDWLRQV LQ
,OOLQRLV OLVWHG LQ DERYH $7 7 LV VHHNLQJ UHWUDQVPLVVLRQ FRQVHQW WR FDUU\ HDFK RI WKHVH
6WDWLRQV See .LP 'HFO *R&RP DQG LWV 6WDWLRQV DUH WKHUHIRUH ³WHOHYLVLRQ EURDGFDVW
See .%79 %HDXPRQW About KBTV KWWSVIR[EHDXPRQWFRPVWDWLRQFRQWDFW ³RZQHG DQG RSHUDWHG E\ 'HHUILHOG 0HGLD ,QF´ See :675 &LQFLQQDWL About WSTR KWWSVWDUWYVWDWLRQFRQWDFW ³RZQHG DQG RSHUDWHG E\ 'HHUILHOG 0HGLD ,QF´ See :30, 0RELOH About WPMI KWWSVP\QEFFRPVWDWLRQFRQWDFW ³RZQHG DQG RSHUDWHG E\ 'HHUILHOG 0HGLD ,QF´ :-7& 0RELOH About WJTC K WWSXWYFRPVWDWLRQFRQWDFW VDPH See :+$0 5RFKHVWHU About WHAM KWWSVZKDPFRPVWDWLRQFRQWDFW ³RZQHG DQG RSHUDWHG E\ 'HHUILHOG 0HGLD ,QF´ &: 5RFKHVWHU About CW Rochester KWWSFZURFKHVWHUFRPVWDWLRQFRQWDFW WKLV VWDWLRQ DORQH DPRQJ WKH 'HHUILHOG VWDWLRQV DW LVVXH LQGLFDWHG WKDW LW LV ³RZQHG DQG RSHUDWHG E\ 6LQFODLU %URDGFDVW *URXS´ See &: .0<6 6DQ $QWRQLR About KMYS KWWSFZFRPVWDWLRQFRQWDFW ³RZQHG DQG RSHUDWHG E\ 'HHUILHOG 0HGLD ,QF´ $V VKRZQ LQ QRWHV WKH 6WDWLRQV¶ ZHEVLWHV LQGLFDWH WKDW WKH\ DUH RZQHG E\ 'HHUILHOG 0HGLD ,QF KRZHYHU )&& ILOLQJV LQGLFDWH WKDW WKH YDULRXV 'HHUILHOG //&V LGHQWLILHG DERYH DQG LQ DUH WHFKQLFDOO\ WKH OHJDO OLFHQVHHV RI WKHVH 6WDWLRQV $7 7 KDV QDPHG ERWK 'HHUILHOG 0HGLD ,QF DQG WKH YDULRXV //&V WR HQVXUH QRWLFH WR WKH SURSHU OHJDO HQWLW\ RU HQWLWLHV KWWSVSXEOLFILOHVIFFJRYWYSURILOHZEXL KWWSVSXEOLFILOHVIFFJRYWYSURILOHZFFX KWWSVSXEOLFILOHVIFFJRYWYSURILOHZUVSWY
PUBLIC VERSION
VWDWLRQV´ ZLWK UHVSHFW WR WKHLU UHWUDQVPLVVLRQ FRQVHQW QHJRWLDWLRQV DV WKDW WHUP LV XVHG LQ
&)5 DQG WKH\ DQG $7 7 DUH ³QHJRWLDWLQJ HQWLWLHV´ IRU SXUSRVHV RI WKRVH UXOHV
+RZDUG 6WLUN +ROGLQJV //& LV ³D OHDGLQJ EURDGFDVW WHOHYLVLRQ FRPSDQ\´ WKDW
ZLWK LWV VXEVLGLDULHV ² DV UHOHYDQW KHUH +6+ )OLQW :(<, /LFHQVHH //& DQG +6+ 0\UWOH
%HDFK ::0% /LFHQVHH //& FROOHFWLYHO\ ³+RZDUG 6WLUN´ ² RZQV DQG FRQWUROV WZR RI
WKH 6WDWLRQV OLVWHG LQ DERYH $7 7 LV VHHNLQJ UHWUDQVPLVVLRQ FRQVHQW WR FDUU\ HDFK RI WKHVH
6WDWLRQV See 'DL 'HFO +RZDUG 6WLUN DQG LWV 6WDWLRQV DUH WKHUHIRUH ³WHOHYLVLRQ EURDGFDVW
VWDWLRQV´ ZLWK UHVSHFW WR WKHLU UHWUDQVPLVVLRQ FRQVHQW QHJRWLDWLRQV DV WKDW WHUP LV XVHG LQ
&)5 DQG WKH\ DQG $7 7 DUH ³QHJRWLDWLQJ HQWLWLHV´ IRU SXUSRVHV RI WKRVH UXOHV
0HUFXU\ %URDGFDVWLQJ &RPSDQ\ ,QF ³0HUFXU\´ RZQV DQG FRQWUROV RQH 6WDWLRQ
OLVWHG LQ DERYH $7 7 LV VHHNLQJ UHWUDQVPLVVLRQ FRQVHQW WR FDUU\ WKLV 6WDWLRQ See 3DFH
'HFO 0HUFXU\ LV WKHUHIRUH D ³WHOHYLVLRQ EURDGFDVW VWDWLRQ´ ZLWK UHVSHFW WR WKHLU
UHWUDQVPLVVLRQ FRQVHQW QHJRWLDWLRQV DV WKDW WHUP LV XVHG LQ &)5 DQG 0HUFXU\ DQG
$7 7 DUH ³QHJRWLDWLQJ HQWLWLHV´ IRU SXUSRVHV RI WKRVH UXOHV
036 0HGLD RI 7HQQHVVHH /LFHQVHH //& 036 0HGLD RI *DLQHVYLOOH /LFHQVHH
//& 036 0HGLD RI 7DOODKDVVHH /LFHQVHH //& DQG 036 0HGLD RI 6FUDQWRQ /LFHQVHH
//& FROOHFWLYHO\ ³036´ RZQ DQG FRQWURO IRXU RI WKH 6WDWLRQV OLVWHG LQ DERYH $7 7 LV
KWWSVSXEOLFILOHVIFFJRYWYSURILOHZH\LWY KWWSVSXEOLFILOHVIFFJRYWYSURILOHZZPE See +RZDUG 6WLUN +ROGLQJV KWWSZZZKVKPHGLDQHZIROGHU KWWSVSXEOLFILOHVIFFJRYWYSURILOHNPWZ KWWSVSXEOLFILOHVIFFJRYWYSURILOHZIOLWY KWWSVSXEOLFILOHVIFFJRYWYSURILOHZQEZGW KWWSVSXEOLFILOHVIFFJRYWYSURILOHZWOI KWWSVSXEOLFILOHVIFFJRYWYSURILOHZVZE
PUBLIC VERSION
VHHNLQJ UHWUDQVPLVVLRQ FRQVHQW WR FDUU\ HDFK RI WKHVH 6WDWLRQV See 3DFH 'HFO 7KHVH 036
6WDWLRQV DUH WKHUHIRUH ³WHOHYLVLRQ EURDGFDVW VWDWLRQV´ ZLWK UHVSHFW WR WKHLU UHWUDQVPLVVLRQ FRQVHQW
QHJRWLDWLRQV DV WKDW WHUP LV XVHG LQ &)5 DQG 036 DQG $7 7 DUH ³QHJRWLDWLQJ
HQWLWLHV´ IRU SXUSRVHV RI WKRVH UXOHV
1DVKYLOOH /LFHQVH +ROGLQJV //& ³1DVKYLOOH´ RZQV DQG FRQWUROV RQH 6WDWLRQ
OLVWHG LQ DERYH $7 7 LV VHHNLQJ UHWUDQVPLVVLRQ FRQVHQW WR FDUU\ WKLV 6WDWLRQ See 3DFH
'HFO 1DVKYLOOH LV WKHUHIRUH D ³WHOHYLVLRQ EURDGFDVW VWDWLRQ´ ZLWK UHVSHFW WR WKHLU
UHWUDQVPLVVLRQ FRQVHQW QHJRWLDWLRQV DV WKDW WHUP LV XVHG LQ &)5 DQG 1DVKYLOOH DQG
$7 7 DUH ³QHJRWLDWLQJ HQWLWLHV´ IRU SXUSRVHV RI WKRVH UXOHV
.075 7HOHYLVLRQ //& ³5REHUWV´ RZQV DQG FRQWUROV RQH 6WDWLRQ OLVWHG LQ
DERYH $7 7 LV VHHNLQJ UHWUDQVPLVVLRQ FRQVHQW WR FDUU\ WKLV 6WDWLRQ See .LP 'HFO
5REHUWV LV WKHUHIRUH D ³WHOHYLVLRQ EURDGFDVW VWDWLRQ´ ZLWK UHVSHFW WR LWV UHWUDQVPLVVLRQ FRQVHQW
QHJRWLDWLRQV DV WKDW WHUP LV XVHG LQ &)5 DQG 5REHUWV DQG $7 7 DUH ³QHJRWLDWLQJ
HQWLWLHV´ IRU SXUSRVHV RI WKRVH UXOHV
6HFRQG *HQHUDWLRQ RI ,RZD /7' ³6HFRQG *HQHUDWLRQ´ RZQV DQG FRQWUROV RQH
6WDWLRQ OLVWHG LQ DERYH $7 7 LV VHHNLQJ UHWUDQVPLVVLRQ FRQVHQW WR FDUU\ WKLV 6WDWLRQ See
'DL 'HFO 6HFRQG *HQHUDWLRQ LV WKHUHIRUH D ³WHOHYLVLRQ EURDGFDVW VWDWLRQ´ ZLWK UHVSHFW WR LWV
UHWUDQVPLVVLRQ FRQVHQW QHJRWLDWLRQV DV WKDW WHUP LV XVHG LQ &)5 DQG 6HFRQG
*HQHUDWLRQ DQG $7 7 DUH ³QHJRWLDWLQJ HQWLWLHV´ IRU SXUSRVHV RI WKRVH UXOHV
KWWSVSXEOLFILOHVIFFJRYWYSURILOHZQDE KWWSVSXEOLFILOHVIFFJRYWYSURILOHNPWU KWWSVSXEOLFILOHVIFFJRYWYSURILOHNI[D
PUBLIC VERSION
:DLWW %URDGFDVWLQJ ,QF ³:DLWW´ RZQV DQG FRQWUROV RQH 6WDWLRQ OLVWHG LQ
DERYH $7 7 LV VHHNLQJ UHWUDQVPLVVLRQ FRQVHQW WR FDUU\ WKLV 6WDWLRQ See 'DL 'HFO :DLWW
LV WKHUHIRUH D ³WHOHYLVLRQ EURDGFDVW VWDWLRQ´ ZLWK UHVSHFW WR LWV UHWUDQVPLVVLRQ FRQVHQW
QHJRWLDWLRQV DV WKDW WHUP LV XVHG LQ &)5 DQG :DLWW DQG $7 7 DUH ³QHJRWLDWLQJ
HQWLWLHV´ IRU SXUSRVHV RI WKRVH UXOHV
6LQFODLU KDV D ILQDQFLDO LQWHUHVW LQ HDFK RI WKHVH 6WDWLRQV >%(*,1 +,*+/<
&21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ See %XUDNRII 'HFO (DFK 6WDWLRQ LV
FRQWUROOHG E\ 6LQFODLU DV VWDWHG RQ WKH 6WDWLRQV¶ ZHEVLWHV LQ VLPLODU WHUPV WR WKRVH IRXQG RQ WKH
ZHEVLWH IRU :+$0 5RFKHVWHU ³:+$0 UHFHLYHV FHUWDLQ VHUYLFHV IURP DQ DIILOLDWLRQ RI
6LQFODLU %URDGFDVW *URXS 6LQFODLU %URDGFDVW *URXS ,QF LV RQH RI WKH ODUJHVW DQG PRVW
GLYHUVLILHG WHOHYLVLRQ EURDGFDVWLQJ FRPSDQLHV LQ WKH FRXQWU\ WRGD\ 6LQFODLU RZQV DQG RSHUDWHV
SURJUDPV RU SURYLGHV VDOHV VHUYLFHV WR WHOHYLVLRQ VWDWLRQV LQ PDUNHWV DIWHU SHQGLQJ
WUDQVDFWLRQV 6LQFODLU¶V WHOHYLVLRQ JURXS UHDFKHV DSSUR[LPDWHO\ RI 86 WHOHYLVLRQ
KRXVHKROGV DQG LQFOXGHV )2; $%& 0\79 &: &%6 1%& 8QLYLVLRQ DQG $]WHFD
DIILOLDWHV´
,QGHHG RQH RI WKH 6WDWLRQV &: 5RFKHVWHU :+$0'7 VWDWHV WKDW LW LV ³RZQHG
DQG RSHUDWHG E\ 6LQFODLU %URDGFDVW *URXS´ WKRXJK WKDW DVVHUWLRQ DSSHDUV WR EH LQFRQVLVWHQW
ZLWK WKH 6WDWLRQ¶V )&& SURILOH ZKLFK OLVWV 'HHUILHOG 0HGLD 5RFKHVWHU /LFHQVHH //& DV WKH
OLFHQVHH
KWWSVSXEOLFILOHVIFFJRYWYSURILOHNPHJ See e.g. :+$0 5RFKHVWHU About WHAM KWWSVZKDPFRPVWDWLRQFRQWDFW See supra QRWH See KWWSVSXEOLFILOHVIFFJRYWYSURILOHZKDPWY
PUBLIC VERSION
6LQFODLU¶V . VLPLODUO\ FRQILUPV WKDW 6LQFODLU H[HUFLVHV VLJQLILFDQW FRQWURO
RYHU WKH 6WDWLRQV 6LQFODLU LQIRUPV LQYHVWRUV WKDW LW SURYLGHV H[WHQVLYH VHUYLFHV WR EURDGFDVW
VWDWLRQV ² UHIHUUHG WR DV ³RXU VWDWLRQV´ ² LQFOXGLQJ HDFK RI WKH 6WDWLRQV DW LVVXH KHUH 6LQFODLU
GHVFULEHV LWV UHODWLRQVKLS WR WKH 6WDWLRQV DV IROORZV
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³RXU´ VWDWLRQV DQG FKDQQHOV
>%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/<
&21),'(17,$/@ See .LP 'HFO
67$7(0(17 2) )$&76
$ >%(*,1 +,*+/< &21),'(17,$/@ >(1' +,*+/< &21),'(17,$/@
$7 7 DQG WKH 6WDWLRQ *URXSV HQWHUHG UHWUDQVPLVVLRQ FRQVHQW DJUHHPHQWV
FRYHULQJ WKH 6WDWLRQV WKDW ZHUH DOO VHW WR H[SLUH RQ >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ See %XUDNRII 'HFO
6LQFODLU %URDGFDVW *URXS ,QF )RUP . DW ILOHG 0DU IRU ILVFDO \HDU HQGLQJ 'HF Id. DW
PUBLIC VERSION
>%(*,1 +,*+/< &21),'(17,$/@
>%(*,1 +,*+/< &21),'(17,$/@
PUBLIC VERSION
>(1' +,*+/< &21),'(17,$/@ See %XUDNRII 'HFO
>%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ >%(*,1
&21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@
PUBLIC VERSION
>(1' &21),'(17,$/@ See %XUDNRII 'HFO
% >%(*,1 &21),'(17,$/@ >(1' &21),'(17,$/@
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ See %XUDNRII 'HFO
>%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ See .LP 'HFO
& 7KH 6WDWLRQ *URXSV ,JQRUHG $7 7¶V ,QGLYLGXDOL]HG 3URSRVDOV DQG 5HIXVHG 7R 1HJRWLDWH
,Q 0DUFK $7 7 VHQW VHSDUDWH FRPSOHWH SURSRVDOV WR UHQHZ DJUHHPHQWV
ZLWK HDFK 6WDWLRQ *URXS >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ See .LP 'HFO 3DFH 'HFO
'DL 'HFO
>%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ WKH 6WDWLRQ
*URXSV DQG >%(*,1 &21),'(17,$/@ >(1' &21),'(17,$/@ YDULHG ZLGHO\
PUBLIC VERSION
LQ DPRQJ RWKHU WKLQJV VWDWLRQ SRUWIROLRV UDQJLQJ IURP MXVW RQH VWDWLRQ ZLWK QR %LJ
VXEVFULSWLRQ EDVH WR PRUH WKDQ VWDWLRQV ZLWK D ODUJH %LJ VXEVFULSWLRQ EDVH DQG JHRJUDSK\
UDQJLQJ IURP D VLQJOH VPDOO PDUNHW WR PDUNHWV QDWLRQZLGH LQFOXGLQJ PDMRU PHWURSROLWDQ DUHDV
See %XUDNRII 'HFO
$7 7¶V QHJRWLDWRUV LQFOXGLQJ 0V .LP 0U 3DFH 0V 'DL DQG 0V %XUDNRII
GLOLJHQWO\ IROORZHG XS RQ $7 7¶V VHSDUDWH SURSRVDOV WR WKH 6WDWLRQ *URXSV EXW QRQH RI WKH
6WDWLRQ *URXSV HYHU RIIHUHG D FRXQWHUSURSRVDO RU PDUNXS LQ UHVSRQVH See %XUDNRII 'HFO
.LP 'HFO 3DFH 'HFO 'DL 'HFO
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ See %XUDNRII 'HFO .LP
'HFO 3DFH 'HFO 'DL 'HFO
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ See %XUDNRII 'HFO 7KH RWKHU 6WDWLRQ
*URXSV GLG QRW UHVSRQG WR WKHLU 6WDWLRQ *URXSVSHFLILF SURSRVDOV See .LP 'HFO 3DFH 'HFO
'DL 'HFO
' $7 7 6HQW WKH 6WDWLRQ *URXSV $QRWKHU 3URSRVDO :KLFK 7KH\ $JDLQ ,JQRUHG
,Q D FRQWLQXHG HIIRUW WR DGYDQFH QHJRWLDWLRQV $7 7 VHQW QHZ SURSRVDOV >%(*,1
&21),'(17,$/@
PUBLIC VERSION
>(1'
&21),'(17,$/@ See .LP 'HFO 3DFH 'HFO 'DL 'HFO
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ $W WKLV SRLQW WKRVH SURSRVDOV KDG JRQH
XQDGGUHVVHG IRU DSSUR[LPDWHO\ D PRQWK DQG D KDOI See .LP 'HFO 3DFH 'HFO 'DL 'HFO
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ ZKLOH SHUVLVWLQJ LQ LJQRULQJ $7 7¶V SHQGLQJ QRQ
>%(*,1 &21),'(17,$/@ >(1' &21),'(17,$/@ SURSRVDOV See .LP
'HFO 3DFH 'HFO 'DL 'HFO
>%(*,1 &21),'(17,$/@
PUBLIC VERSION
>(1' &21),'(17,$/@ See
%XUDNRII 'HFO
( >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@
>%(*,1 +,*+/< &21),'(17,$/@
>(1'
+,*+/< &21),'(17,$/@ See .LP 'HFO 3DFH 'HFO 'DL 'HFO
>%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/<
&21),'(17,$/@ See .LP 'HFO
>%(*,1 +,*+/< &21),'(17,$/@
PUBLIC VERSION
>(1' +,*+/< &21),'(17,$/@ See .LP
'HFO
) 7KH ([LVWLQJ $JUHHPHQWV ([SLUHG 6WDWLRQV :HQW 'DUN DQG WKH 6WDWLRQ *URXSV Still 5HIXVHG 7R 5HVSRQG
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ $7 7 HQJDJHG
RXWVLGH FRXQVHO >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ See %XUDNRII 'HFO
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@
See %XUDNRII 'HFO
>%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ See %XUDNRII 'HFO
PUBLIC VERSION
>%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@
See .LP 'HFO 3DFH 'HFO 'DL 'HFO
$W WKDW SRLQW $7 7 KDG >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ LQ WKH KRSH WKDW WKH 6WDWLRQ *URXSV ZRXOG EHJLQ
QHJRWLDWLRQV EXW WKLV GLG QRW KDSSHQ >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/<
&21),'(17,$/@ $7 7 ZDV IRUFHG WR VWRS UHWUDQVPLWWLQJ WKH VLJQDOV IRU DOO EXW WKUHH RI WKH
6WDWLRQV RQ 0D\ See .LP 'HFO 3DFH 'HFO 'DL 'HFO $JUHHPHQWV ZLWK WKH
RWKHU WKUHH 6WDWLRQV RQH +RZDUG 6WLUN 6WDWLRQ DQG WKH 0HUFXU\ DQG 1DVKYLOOH 6WDWLRQV H[SLUHG
RQ -XQH >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ See 3DFH 'HFO 'DL
'HFO
PUBLIC VERSION
* >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@
2Q -XQH IRXU GD\V LQWR WKH EODFNRXW >%(*,1 +,*+/< &21),'(17,$/@
>(1'
+,*+/< &21),'(17,$/@ See .LP 'HFO 3DFH 'HFO 'DL 'HFO
>%(*,1 &21),'(17,$/@
>(1'
&21),'(17,$/@ See .LP 'HFO
+ >%(*,1 &21),'(17,$/@ >(1' &21),'(17,$/@
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ See %XUDNRII 'HFO
>%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ See .LP 'HFO 3DFH 'HFO 'DL 'HFO
PUBLIC VERSION
&2817 , ± 3(5 6( 9,2/$7,216
$7 7 LQFRUSRUDWHV E\ UHIHUHQFH SDUDJUDSKV DV WKRXJK IXOO\ VWDWHG KHUHLQ
7KH 6WDWLRQ *URXSV DUH WHOHYLVLRQ EURDGFDVW VWDWLRQV ',5(&79 DQG 8YHUVH DUH
093'V DQG $7 7 DQG WKH 6WDWLRQ *URXSV DUH QHJRWLDWLQJ HQWLWLHV
8QGHU 86& E & LL DQG WKH &RPPLVVLRQ¶V UXOHV see &)5
D WKH 6WDWLRQ *URXSV ZHUH DQG DUH UHTXLUHG WR QHJRWLDWH UHWUDQVPLVVLRQ FRQVHQW LQ JRRG
IDLWK ZLWK $7 7
7KH &RPPLVVLRQ KDV VHW IRUWK D VHULHV RI SUDFWLFHV WKDW DUH per se YLRODWLRQV RI WKH
UHTXLUHPHQW WR QHJRWLDWH LQ JRRG IDLWK See &)5 E 7KH 6WDWLRQ *URXSV KDYH
YLRODWHG VHYHUDO RI WKHVH per se UXOHV
$ 7KH 6WDWLRQ *URXSV¶ 5HIXVDO 7R 1HJRWLDWH
7KH ILUVW per se UXOH SUHFOXGHV ³>U@HIXVDO E\ D 1HJRWLDWLQJ (QWLW\ WR QHJRWLDWH
UHWUDQVPLVVLRQ FRQVHQW´ &)5 E L 7KH 6WDWLRQ *URXSV KDYH GRQH WKDW
WKURXJKRXW >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/<
&21),'(17,$/@ HYHQ QRZ ZLWK 6WDWLRQV RII WKH DLU WKH\ KDYH UHIXVHG WR QHJRWLDWH
DJUHHPHQWV >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@
7KH Good-Faith Order LWVHOI VWDWHV WKDW ³>E@URDGFDVWHUV must participate LQ
UHWUDQVPLVVLRQ FRQVHQW QHJRWLDWLRQV ZLWK WKH LQWHQW RI UHDFKLQJ DJUHHPHQW´ Good-Faith Order
HPSKDVLV DGGHG 7KH &RPPLVVLRQ ³UHLWHUDWH>G@ WKDW JRRG IDLWK QHJRWLDWLRQ UHTXLUHV D
EURDGFDVWHU¶V affirmative participation´ Id. HPSKDVLV DGGHG >%(*,1
&21),'(17,$/@
PUBLIC VERSION
>(1' &21),'(17,$/@
,Q VXP WKRXJK >%(*,1 &21),'(17,$/@ >(1'
&21),'(17,$/@ WKH 6WDWLRQ *URXSV¶ GHDOV ZRXOG UHTXLUH QHJRWLDWLRQ DQG GHVSLWH WKH IDFW
WKDW $7 7 KDG VXEPLWWHG SURSRVDOV WR EHJLQ WKRVH QHJRWLDWLRQV LQ 0DUFK WR WKLV GD\ WKH\ KDYH
UHIXVHG WR QHJRWLDWH DQ DJUHHPHQW IRU WKHLU RZQ GHDOV
% 7KH 6WDWLRQ *URXSV¶ )DLOXUH 7R 5HVSRQG WR $7 7¶V 3URSRVDOV
$QRWKHU per se UXOH SUHFOXGHV ³>I@DLOXUH RI D 1HJRWLDWLQJ (QWLW\ WR UHVSRQG WR D
UHWUDQVPLVVLRQ FRQVHQW SURSRVDO RI WKH RWKHU SDUW\ LQFOXGLQJ WKH UHDVRQV IRU WKH UHMHFWLRQ RI DQ\
VXFK SURSRVDO´ &)5 E Y
7KH 6WDWLRQ *URXSV KDYH YLRODWHG WKLV UXOH $7 7 KDV DVNHG PDQ\ WLPHV IRU
UHVSRQVHV WR LWV 0DUFK DQG $SULO SURSRVDOV EXW WKH 6WDWLRQ *URXSV KDYH QHYHU SURYLGHG RQH
>%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/<
&21),'(17,$/@ ,QGHHG WKH FOHDUHVW LQGLFDWLRQ WKDW >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ WKH 6WDWLRQ *URXSV KDYH QRW UHVSRQGHG WR $7 7¶V
SURSRVDOV LV WKDW >%(*,1 +,*+/< &21),'(17,$/@ >(1' +,*+/<
&21),'(17,$/@ $7 7 GRHV QRW HYHQ NQRZ ZKHWKHU WKH 6WDWLRQ *URXSV REMHFW WR DQ\ RWKHU
WHUP $7 7 SURSRVHG $7 7 FRXOG RQO\ OHDUQ WKDW LQIRUPDWLRQ WKURXJK UHVSRQVHV DQG QRQH
KDYH EHHQ SURYLGHG 'HVSLWH $7 7¶V QXPHURXV IROORZXS LQTXLULHV WKH 6WDWLRQ *URXSV KDYH
VLPSO\ QHYHU SURYLGHG D VXEVWDQWLYH DQVZHU
7KH &RPPLVVLRQ UHFHQWO\ UHPLQGHG 2SWLFDO7HO WR ³EH PRUH UHVSRQVLYH LQ WKH
IXWXUH WR UHWUDQVPLVVLRQ LQTXLULHV´ 2UGHU Optical Telecomms., Inc. )&& 5FG
PUBLIC VERSION
6U 'HS &KLHI 0HGLD %XU FDXWLRQLQJ 2SWLFDO7HO IRU ³QRW UHVSRQGLQJ WR 681¶V OHWWHUV
DQG SKRQH FDOOV´ EXW ILQGLQJ QR JRRGIDLWK YLRODWLRQ EHFDXVH 2SWLFDO7HO KDG D JRRGIDLWK EXW
PLVWDNHQ EHOLHI WKDW LWV UHWUDQVPLVVLRQ FRQVHQW IHHV ZHUH FRYHUHG LQ D VHSDUDWH DJUHHPHQW ZLWK
'LVK DQG 2SWLFDO7HO ZDV ZRUNLQJ ZLWK 'LVK WR UHVROYH WKH LVVXH DW KDQG 6XFK DGPRQLWLRQV
ZRXOG EH WRRWKOHVV LI WKH 6WDWLRQ *URXSV¶ FRQGXFW SDVVHV WKH JRRGIDLWK WHVW 7KH 6WDWLRQ *URXSV
NQRZ >%(*,1 &21),'(17,$/@ >(1'
&21),'(17,$/@ WKDW WKH\ each ZLOO KDYH WR IXOO\ QHJRWLDWH >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ DQG WKDW WKH\ RZH $7 7 UHVSRQVHV 7KH\ KDYH
LPSHUPLVVLEO\ UHIXVHG WR FRPSOHWH HLWKHU VWHS >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ WZR ZHHNV LQWR EODFNRXWV >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@
& 7KH 6WDWLRQ *URXSV¶ 5HIXVDO 7R 1HJRWLDWH DW 5HDVRQDEOH 7LPHV DQG :LWKRXW 8QUHDVRQDEO\ 'HOD\LQJ $JUHHPHQW
(YHQ LI >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ ZHUH GHHPHG ERWK D VXIILFLHQW QHJRWLDWLRQ DQG D
UHVSRQVH LW LV QRW HQRXJK WR QHJRWLDWH DQG UHVSRQG eventually 5DWKHU ³>U@HIXVDO E\ D
1HJRWLDWLQJ (QWLW\ WR QHJRWLDWH UHWUDQVPLVVLRQ FRQVHQW DW reasonable times DQG ORFDWLRQV RU
DFWLQJ LQ D PDQQHU WKDW unreasonably delays UHWUDQVPLVVLRQ FRQVHQW QHJRWLDWLRQV´ LV DOVR D per se
YLRODWLRQ &)5 E LLL HPSKDVHV DGGHG ³7KH UXOH UHTXLUHV SDUWLHV WR UHVSRQG
WR RIIHUV RQ D WLPHOLQH WKDW LV UHDVRQDEOH LQ WKH specific context RI WKH QHJRWLDWLRQV DW KDQG´
0HPRUDQGXP 2SLQLRQ DQG 2UGHU Coastal Television Broad. Co. LLC 0% 'RFNHW 1R
&65 1R & '$ :/ &KLHI 0HGLD %XU )&& UHO 1RY
HPSKDVLV DGGHG
PUBLIC VERSION
7KH &RPPLVVLRQ KDV IXUWKHU FODULILHG WKDW ³LQ PDQ\ FDVHV WLPH ZLOO EH RI WKH
HVVHQFH LQ UHWUDQVPLVVLRQ FRQVHQW QHJRWLDWLRQV :H DGYLVH EURDGFDVWHUV WKDW LQ H[DPLQLQJ
YLRODWLRQV RI WKLV VWDQGDUG ZH ZLOO FRQVLGHU WKH SUR[LPLW\ RI WKH WHUPLQDWLRQ RI UHWUDQVPLVVLRQ
FRQVHQW DQG WKH FRQVHTXHQW VHUYLFH GLVUXSWLRQV WR FRQVXPHUV´ Good-Faith Order
7LPH ZDV DQG LV RI WKH HVVHQFH KHUH HVSHFLDOO\ EHFDXVH WKH 6WDWLRQV DUH GDUN DQG
KDYH EHHQ VLQFH 0D\ DQG -XQH IRU WKUHH 6WDWLRQV 5HIXVLQJ WR SURYLGH >%(*,1
&21),'(17,$/@ >(1' &21),'(17,$/@ D UHVSRQVH XQWLO >%(*,1
&21),'(17,$/@ >(1' &21),'(17,$/@ WKH H[LVWLQJ DJUHHPHQW
KDG H[SLUHG RU IRU WKUHH 6WDWLRQV ZDV DERXW WR H[SLUH GHVSLWH UHFHLYLQJ LQLWLDO SURSRVDOV LQ
0DUFK TXDOLILHV DV D UHIXVDO WR QHJRWLDWH ³DW >D@ UHDVRQDEOH WLPH>@´ &)5 E LLL
%\ ZDLWLQJ VHYHUDO PRQWKV DQG DOORZLQJ H[LVWLQJ WHUPV WR ODSVH >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ WKH 6WDWLRQ *URXSV DOVR
³XQUHDVRQDEO\ GHOD\>HG@ UHWUDQVPLVVLRQ FRQVHQW QHJRWLDWLRQV´ Id. 7KDW FRQFOXVLRQ LV QR
GLIIHUHQW IRU WKH WKUHH 6WDWLRQV WKDW ZHQW GDUN RQ -XQH EHFDXVH WKRVH 6WDWLRQV OLNH WKH RWKHUV
ZHQW GDUN EHIRUH DQ\ UHVSRQVH ZDV SURYLGHG RQ D VHW RI WHUPV QHHGHG WR UHDFK D GHDO
$FFRUGLQJO\ WKH &RPPLVVLRQ VKRXOG FRQFOXGH WKDW WKH 6WDWLRQ *URXSV KDYH IDLOHG
WR QHJRWLDWH LQ JRRG IDLWK LQ YLRODWLRQ RI WKH &RPPXQLFDWLRQV $FW RI DQG WKH &RPPLVVLRQ¶V per se UXOHV See 86& E & LL &)5 E L LLL Y
&2817 ,, ± 727$/,7< 2) 7+( &,5&8067$1&(6
$7 7 LQFRUSRUDWHV E\ UHIHUHQFH SDUDJUDSKV DV WKRXJK IXOO\ VWDWHG KHUHLQ
(YHQ LI WKH FRQGXFW MXVW GHVFULEHG GRHV QRW JLYH ULVH WR D per se YLRODWLRQ LQ WKH
DOWHUQDWLYH WKH &RPPLVVLRQ VKRXOG ILQG WKDW WKH 6WDWLRQ *URXSV¶ PLVFRQGXFW IDLOV WKH JRRGIDLWK
WHVW ³EDVHG RQ WKH WRWDOLW\ RI WKH FLUFXPVWDQFHV´ &)5 E 8QGHU WKLV VWDQGDUG
³DQ 093' PD\ SUHVHQW IDFWV WR WKH &RPPLVVLRQ ZKLFK HYHQ WKRXJK WKH\ GR QRW DOOHJH D
PUBLIC VERSION
YLRODWLRQ RI WKH REMHFWLYH VWDQGDUGV JLYHQ WKH WRWDOLW\ RI WKH FLUFXPVWDQFHV UHIOHFW DQ DEVHQFH RI D
VLQFHUH GHVLUH WR UHDFK DQ DJUHHPHQW WKDW LV DFFHSWDEOH WR ERWK SDUWLHV DQG WKXV FRQVWLWXWH D IDLOXUH
WR QHJRWLDWH LQ JRRG IDLWK´ Good-Faith Order 6XFK FRQGXFW LQFOXGHV DFWLRQV WKDW DUH
³VXIILFLHQWO\ RXWUDJHRXV´ VR DV WR YLRODWH WKH JRRGIDLWK QHJRWLDWLRQ UHTXLUHPHQW Id.
%H\RQG IDLOLQJ WR DIILUPDWLYHO\ SDUWLFLSDWH IDLOLQJ WR UHVSRQG WR $7 7¶V
SURSRVDOV DQG XQUHDVRQDEO\ GHOD\LQJ DV MXVW GHVFULEHG WKH 6WDWLRQ *URXSV DOVR LPSRVHG
FRQGLWLRQV RQ QHJRWLDWLRQV WKDW DUH LQFRPSDWLEOH ZLWK JRRG IDLWK LQFOXGLQJ >%(*,1
&21),'(17,$/@ >(1' &21),'(17,$/@ LQ RUGHU
WR H[WUDFW XQGXH EDUJDLQLQJ SRZHU >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ ZLWK YHU\ GLIIHUHQW HFRQRPLF
UHDOLWLHV
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ >%(*,1 +,*+/<
&21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ >%(*,1 &21),'(17,$/@
PUBLIC VERSION
>(1' &21),'(17,$/@
7KH &RPPLVVLRQ KDV UHFRJQL]HG WKDW ERWK 093'V DQG EURDGFDVWHUV DUH IUHH WR
LQVLVW RQ WUHDWLQJ WHUPV RI UHWUDQVPLVVLRQ FRQVHQW DJUHHPHQWV FRQILGHQWLDOO\ 5HMHFWLQJ D
EURDGFDVWHU¶V FODLP WKDW ',5(&79 VKRXOG EH FRPSHOOHG WR VKDUH DJUHHPHQWV UHDFKHG ZLWK RWKHU
EURDGFDVWHUV WKH &RPPLVVLRQ KHOG LW LV ³QRW QHFHVVDU\ RU SURSHU WR FRPSHO ',5(&79 WR SURYLGH
LWV FRQILGHQWLDO UHWUDQVPLVVLRQ FRQVHQW DJUHHPHQWV´ 0HPRUDQGXP 2SLQLRQ DQG 2UGHU
Northwest Broad., L.P. v. DIRECTV, LLC )&& 5FG &KLHI 0HGLD %XU
7KH &RPPLVVLRQ XVHG WKH VDPH UXOH WR UHMHFW DQ 093'¶V DWWHPSW WR REWDLQ 6LQFODLU¶V
FRQILGHQWLDO LQIRUPDWLRQ See 0HPRUDQGXP 2SLQLRQ DQG 2UGHU Mediacom Commc’ns Corp. v.
Sinclair Broad. Grp., Inc. )&& 5FG &KLHI 0HGLD %XU SHUPLWWLQJ 6LQFODLU WR
ZLWKKROG LWV FRQILGHQWLDO LQIRUPDWLRQ
&RQILGHQWLDOLW\ DJUHHPHQWV DUH WKHUHIRUH HVWDEOLVKHG WRROV WKDW QHJRWLDWRUV PD\
UHO\ XSRQ DV $7 7 LV GRLQJ KHUH %UHDFKLQJ FRQWUDFWV E\ FRQWUDVW LV D WRRO DQ\ JRRGIDLWK
QHJRWLDWRU ZRXOG UHFRJQL]H DV ³RXWUDJHRXV´ DQG IDU RXW RI ERXQGV Good-Faith Order
>%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ >%(*,1 +,*+/< &21),'(17,$/@
>(1' +,*+/< &21),'(17,$/@ >%(*,1 &21),'(17,$/@
PUBLIC VERSION
>(1' &21),'(17,$/@ 7KH &RPPLVVLRQ KDV UHFRJQL]HG WKDW JRRG IDLWK SUHFOXGHV D
QHJRWLDWRU IURP UHIXVLQJ ³WR SXW IRUWK PRUH WKDQ D VLQJOH XQLODWHUDO SURSRVDO´ &)5
E LY >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@
>%(*,1 &21),'(17,$/@ >(1' &21),'(17,$/@ KDV D
ODUJHU PRUH GLYHUVH SRUWIROLR RI VWDWLRQV WKDQ GR WKH RWKHU 6WDWLRQ *URXSV >%(*,1
&21),'(17,$/@
>(1' &21),'(17,$/@ LV DQ LQGLFDWRU
WKDW ³>F@RQVLGHUDWLRQV WKDW DUH GHVLJQHG WR IUXVWUDWH WKH IXQFWLRQLQJ RI D FRPSHWLWLYH PDUNHW´ DUH
DW ZRUN Good-Faith Order
7KXV WKH 6WDWLRQ *URXSV DUH >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ WKDW KDV FDXVHG DQG LV FRQWLQXLQJ WR FDXVH
VXEVWDQWLDO FRQVXPHU KDUP WKURXJK ZLGHVSUHDG EODFNRXWV 7KH FOHDU JRDO RI WKLV VWUDWHJ\ LV WR
H[WUDFW KLJKHU IHHV WKDW DUH XQWHWKHUHG WR PDUNHW UHDOLWLHV
PUBLIC VERSION
7KH &RPPLVVLRQ KDV VDLG WKDW LW ³ZLOO FRQVLGHU WKH SUR[LPLW\ RI WKH WHUPLQDWLRQ RI
UHWUDQVPLVVLRQ FRQVHQW DQG WKH FRQVHTXHQW VHUYLFH GLVUXSWLRQV WR FRQVXPHUV´ LQ FRQVLGHULQJ
JRRGIDLWK YLRODWLRQV Good-Faith Order 7KH 6WDWLRQ *URXSV¶ FRQWLQXHG UHFDOFLWUDQFH
after WHUPLQDWLRQ RI UHWUDQVPLVVLRQ FRQVHQW VKRXOG EH MXGJHG KDUVKO\ XQGHU WKLV VWDQGDUG
8QGHU WKH WRWDOLW\RIWKHFLUFXPVWDQFHV WHVW HDFK RI WKHVH YLRODWLRQV DORQH DQG
WRJHWKHU ² LQFOXGLQJ WKH YLRODWLRQV GLVFXVVHG XQGHU &RXQW , ² FRQVWLWXWHV D IDLOXUH E\ WKH
6WDWLRQ *URXSV WR QHJRWLDWH LQ JRRG IDLWK LQ YLRODWLRQ RI WKH &RPPXQLFDWLRQV $FW RI DQG
WKH &RPPLVVLRQ¶V UXOHV See 86& E & LL &)5 E
5(48(67 )25 5(/,()
)RU WKH IRUHJRLQJ UHDVRQV $7 7 DVNV WKH &RPPLVVLRQ WR LVVXH DQ RUGHU JUDQWLQJ WKH
IROORZLQJ UHOLHI
'HFODULQJ WKDW HDFK 6WDWLRQ *URXS KDV IDLOHG WR QHJRWLDWH LQ JRRG IDLWK XQGHU
WKH $FW DQG WKH &RPPLVVLRQ¶V UXOHV
5HTXLULQJ HDFK 6WDWLRQ *URXS WR LPPHGLDWHO\ >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@ QHJRWLDWH LQ JRRG IDLWK IRU WKH
UHWUDQVPLVVLRQ RI LWV 6WDWLRQV¶ VLJQDOV >%(*,1 &21),'(17,$/@
>(1' &21),'(17,$/@
PUBLIC VERSION
,PSRVLQJ IRUIHLWXUHV RQ HDFK 6WDWLRQ *URXS SXUVXDQW WR 6HFWLRQ RI WKH
&RPPLVVLRQ¶V UXOHV DV WKH &RPPLVVLRQ GHHPV DSSURSULDWH DQG
$ZDUGLQJ $7 7 RWKHU DQG IXUWKHU UHOLHI WKDW WKH &RPPLVVLRQ GHHPV MXVW DQG
SURSHU
5(48(67 )25 (;3(',7(' 75($70(17
$7 7¶V H[LVWLQJ DJUHHPHQWV ZLWK WKH 6WDWLRQ *URXSV KDYH DOUHDG\ H[SLUHG ,Q RUGHU WR
PLQLPL]H WKH KDUP WR WKH SXEOLF FDXVHG E\ WKH 6WDWLRQ *URXSV¶ LOOHJDO EDGIDLWK FRQGXFW $7 7
UHVSHFWIXOO\ UHTXHVWV WKDW WKH &RPPLVVLRQ DFW RQ WKLV &RPSODLQW ZLWK XWPRVW VSHHG See Good-
Faith Order H[SODLQLQJ WKDW H[SHGLWHG WUHDWPHQW LV PRUH IHDVLEOH LQ D FDVH OLNH WKLV
LQYROYLQJ ³D FOHDU YLRODWLRQ VXFK DV RXWULJKW UHIXVDO WR QHJRWLDWH´ JLYLQJ ³SULRULW\ WR 6HFWLRQ
E & FRPSODLQWV´ ,Q SDUWLFXODU $7 7 DVNV WKH &RPPLVVLRQ WR SODFH WKLV &RPSODLQW
RQ SXEOLF QRWLFH LPPHGLDWHO\ DQG WR JUHDWO\ H[SHGLWH WKH FRPPHQW SHULRG SHUPLWWHG XQGHU LWV
SURFHGXUDO UXOHV &)5 E L DQG F
Respectfi.rlly submitted,
DIRECTVO LLC AT&T SERVTCES,INC.
By:
M.
Sean A. Lev Cathy Carpino Kevin J. Miller Christopher M. Heimann Matthew M. Duffy Gary L. Phillips KnLlocc, HRNsnN, Tooo, David L. Lawson Frcel & Fnpo¡2cr, P.L.L.C. AT&T SrRvrces,INc. 1615 M Street, N.W., Suite 400 ll20 20th Street, N.W., Suite 1000 Washington, D.C. 20036 Washington, D.C. 20036 (202) 326-7900 (202) 4s7-3046
Counsel for DIRECTV, LLC and AT&T Services, Inc.
June 18,2019 VERIF'ICATION
I, Christopher M. Heimann, do hereby declare and state under penaþ of perjury as follows:
I I am Assistant Vice President - Senior Legal Counsel, for AT&T Services, Inc. My business address is 1120 20th Street, N.W., Suite 1000,'Washington, D.C. 20036.
2. I have read the foregoing Complaint. To the best of my personal knowledge, information, and belief formed after reasonable inquiry, the statements made in this Complaint (other than those of which official notice can be taken) are well grounded in fact and warranted by existing law or a good-faith argument for the extension, modification, or reversal of existing law. This Complaint is not interposed for any improper purpose.
M.
June 18,2019 DECLARATION OF LINDA BURAKOFF
I, Linda Burakoff, am over the age of 18. I am a resident of the state of California. I have personal knowledge of the facts herein, and, if called as a witness, could competently testify thereto.
1. I am Vice President, Content & Programming for AT&T Mobility & Entertainment
Group. In that role, I routinely oversee retransmission negotiations between various
AT&T entities, including AT&T Services, Inc. and DIRECTV, LLC (collectively,
“AT&T”), and broadcast stations. In particular, I have been personally involved on
behalf of AT&T in the negotiations that are the subject of the foregoing Verified
Complaint.
2. I have reviewed the Verified Complaint. Based on my personal knowledge, each
statement in the Verified Complaint followed by a reference to this declaration is true and
correct. Moreover, based on information made known to me pursuant to my duties, the
remainder of the Statement of Facts is true and correct, as well.
I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.
Executed on June 18,2019, in California.
Linda Burakoff DECLARATION OF HONGFENG DAI
I, Hongfeng Dai, am over the age of 18. I am a resident of the state of California. I have personal knowledge of the facts herein, and, if called as a witness, could competently testify thereto.
1. I am Director, Content & Programming for AT&T Inc. In that role, I routinely
participate in retransmission negotiations between various AT&T entities, including
AT&T Services, Inc. and DIRECTV, LLC (collectively, “AT&T”), and broadcast
stations. In particular, I have been personally involved on behalf of AT&T in the
negotiations that are the subject of the foregoing Verified Complaint.
2. I have reviewed the Verified Complaint. Based on my personal knowledge, each
statement in the Verified Complaint followed by a reference to this declaration is true and
correct, with respect to the following three Station Groups with which I was personally
involved: Howard Stirk, Second Generation, and Waitt. Moreover, based on
information made known to me pursuant to my duties, the remainder of the Statement of
Facts is true and correct, as well.
These capitalized terms have the same meaning as in the Verified Complaint. I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.
Executed on June 18,2019, in California.
Hongfeng Dai DECLARATION OF DALLIA KIM
I, Dallia Kim, am over the age of 18. I am a resident of the state of California. I have personal knowledge of the facts herein, and, if called as a witness, could competently testify thereto.
1. I am Assistant Vice President, Content & Programming for AT&T Inc. In that role, I
routinely participate in retransmission negotiations between various AT&T entities,
including AT&T Services, Inc. and DIRECTV, LLC (collectively, “AT&T”), and
broadcast stations. In particular, I have been personally involved on behalf of AT&T in
the negotiations that are the subject of the foregoing Verified Complaint.
2. I have reviewed the Verified Complaint. Based on my personal knowledge, each
statement in the Verified Complaint followed by a reference to this declaration is true and
correct. Moreover, based on information made known to me pursuant to my duties, the
remainder of the Statement of Facts is true and correct, as well.
I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.
Executed on June 18,2019, in California.
Dallia Kim DECLARATION OF MICHAEL PACE
I, Michael Pace, am over the age of 18. I am a resident of the state of California. I have personal knowledge of the facts herein, and, if called as a witness, could competently testify thereto.
1. I am Director, Content & Programming for AT&T Inc. In that role, I routinely
participate in retransmission negotiations between various AT&T entities, including
AT&T Services, Inc. and DIRECTV, LLC (collectively, “AT&T”), and broadcast
stations. In particular, I have been personally involved on behalf of AT&T in the
negotiations that are the subject of the foregoing Verified Complaint.
2. I have reviewed the Verified Complaint. Based on my personal knowledge, each
statement in the Verified Complaint followed by a reference to this declaration is true and
correct with respect to the following three Station Groups with which I was personally
involved: Mercury, MPS, and Nashville. Moreover, based on information made known
to me pursuant to my duties, the remainder of the Statement of Facts is true and correct,
as well.
These capitalized terms have the same meaning as in the Verified Complaint. I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.
Executed on June 18,2019, in California. A.z CERTIFICATE OF SERVICE
I hereby certify that, on June 18, 2019,I caused a copy of two versions of the foregoing
(1) redacted Version as filed with the Commission, and (2) a Complaint - the fully Public version redacted to remove certain information for which AT&T has requested Commission approval to limit disclosure to the Station Groups' attorneys not participating in negotiations with AT&T (and marked "CONFIDENTIAL INFORMATION - Not for Public Inspection") - to be served upon the following entities:
Deerfield Media, Inc. Deerfield Media (Port Arthur) Licensee, LLC Deerfield Media (Cincinnati) Licensee, LLC Deerfield Media (Mobile) Licensee, LLC Deerfield Media (Rochester) Licensee, LLC Deerfield Media (San Antonio) Licensee,LLc GoCom Media of lllinois, LLC Howard Stirk Holdings, LLC HSH Flint (WEYÐ Licensee, LLC HSH Myrtle Beach (W\MMB) Licensee, LLC KMTR Television, LLC Mercury Broadcasting Company, Inc. MPS Media of Tennessee Licensee, LLC MPS Media of Gainesville Licensee, LLC MPS Media of Tallahassee Licensee, LLC MPS Media of Scranton Licensee,LLC Nashville License Holdings, LLC Second Generation of lowa, LTD Waitt Broadcasting, Inc. via overnight delivery and via electronic mail (as designated) on those on the attached list, andlor upon the named defendants by hand delivery to their registered agents for service of process.
M. Duffy SERVICE LIST
Deerfield/Manhan Group Nashville License Holdings, LLC 1261 Dublin Road 11400 West Olympic Boulevard Columbus, Ohio 43215 Suite 590 Attn: Danielle Turner Los Angeles, California 90064 ([email protected]) Nashville License Holdings, LLC Deerfield Entities Second Generation of Iowa, LTD GoCom Media of Illinois, LLC 3029 Prospect Avenue 400 Main Street, Suite 200F Cleveland, Ohio 44115 Hilton Head, South Carolina 29926 Attn: Tom Embrescia Attn: Ric Gorman KFXA TV GoCom Media of Illinois, LLC 3029 Prospect Avenue Cleveland, Ohio 44115 Howard Stirk Holdings, LLC Attn: Autumn Giddens 201 Massachusetts Avenue, N.E. Suite C-1 Second Generation of Iowa, LTD Washington, D.C. 20002 Attn: Armstrong Williams Waitt Broadcasting, Inc. 1125 South 103rd Street Howard Stirk Holdings Entities Suite 425 Omaha, Nebraska 68124 KMTR Television, LLC Attn: John S. Schuele 3825 International Court Springfield, Oregon 97477-1086 Waitt Broadcasting, Inc. Attn: Larry Roberts Pillsbury Winthrop Shaw Pittman LLP KMTR Television, LLC 1200 17th Street, N.W. Washington, D.C. 20036 Mercury Broadcasting Company, Inc. Attn: Joseph A. Cohen 115 East Travis, Suite 533 ([email protected]) San Antonio, Texas 78205 On Behalf of All Entities Mercury Broadcasting Company, Inc. 4040 Broadway, Suite 308 San Antonio, Texas 78209
Mercury Broadcasting Company, Inc.
MPS Media 1181 Highway 315 Wilkes-Barre, Pennsylvania 18702 Attn: Eugene Brown
MPS Media Entities