DENVER -- EchoStar Communications Corp. filed a lawsuit Thursday accusing its collaborator WebTV Networks of neglecting their relationship to make equipment with rival DirecTV instead.
The suit, filed in U.S. District Court, seeks unspecified damages.
WebTV, owned by Microsoft Corp., and EchoStar, a satellite TV provider based in Littleton, agreed in 1998 to develop Internet access through television and a set-top box that contains a modem, a CPU and hard drive. EchoStar called the device the DISHPlayer.
EchoStar's lawsuit said WebTV also agreed to provide customer support for the device.
The sides later agreed to share costs for customer support, and WebTV was to pay subsidies to EchoStar for each DISHPlayer sold, according to the lawsuit.
EchoStar claims WebTV couldn't devote as much of its resources to the DISHPlayer after WebTV started developing a similar system with DirecTV called UltimateTV.
EchoStar also said WebTV has failed to pay $50 million it owes under their agreement.
The satellite broadcaster further alleges that DISHPlayer owners see ads for the competing UltimateTV on their screens.
WebTV's service is offered through Microsoft as MSN TV.
On the Net: EchoStar Communications Inc.: http://www.dishnetwork.com/; WebTV Networks: http://www.webtv.com/.
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