Disney wins temporary reprieve <BR>in EchoStar dispute

NEW YORK - A judge has ordered EchoStar to continue carrying Disney's ABC Family and ESPN Classic channels after the satellite operator tried to drop them following a reported dispute over fees.

The US District Court in Los Angeles made the temporary ruling in Disney's favour after deciding that the ABC Family channel faced harm if EchoStar ceased distribution.



Disney claims that if EchoStar drops its channels, it will be breaking a contract that runs until August 2005. EchoStar, in response, has cited a clause allowing either party to terminate the agreement if ownership of the channel changes. ABC Family was created after Disney bought what used to be the Fox Family Channel from News Corporation.



The order lasts until January 10, when it will be reviewed.



EchoStar is the second largest satellite-broadcaster in the US, and is currently in the process of buying the largest, DirecTV. However, the deal faces scrutiny by regulators, with others in the industry -- including Disney and News Corp -- arguing that it is anti-competitive.



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