Mediacom Communications Corp. v. Sinclair Broadcast Group, Inc.

Sinclair Broadcast Group, Inc. (Sinclair) (defendant) owned television stations. Mediacom Communications Corporation (Mediacom) (plaintiff) owned cable-television systems. Starting in 2002, Mediacom carried 22 Sinclair stations under a retransmission agreement that automatically renewed monthly unless a party terminated with 45 days’ notice. In 2005 Sinclair realized that satellite companies would pay more for retransmission rights for all 22 of its stations. Sinclair attempted to negotiate with Mediacom for more compensation, but Mediacom refused, only willing to pay for 13 of Sinclair’s stations (the tying stations) and not the remaining nine stations (the tied stations). Sinclair and Mediacom could not agree, Sinclair entered into a retransmission agreement with a satellite company, and Sinclair gave Mediacom notice terminating the 2002 retransmission agreement. Mediacom filed suit against Sinclair, alleging violations of the Sherman Antitrust Act and other claims relating to Sinclair’s tying stations. Mediacom sought a preliminary injunction enjoining Sinclair from terminating the 2002 retransmission agreement and engaging in related marketing. Mediacom alleged that its customers would lose trust in Mediacom and enter into long-term contracts with satellite providers. Mediacom also alleged that Sinclair’s marketing campaign would decrease advertising revenues and that customers would complain to government officials. Government officials had written Mediacom sympathetic letters blaming Sinclair. Finally, Mediacom alleged that its customers would pay higher prices and would not have their preferred channels.