By Erin Coe

Law360, New York (July 08, 2008, 12:00 AM ET) -- In a blow to CBS Broadcasting Inc. and Fox Broadcasting Co., a federal appeals court has ruled that satellite company EchoStar Communications Corp. can lease its transponder to another company to retransmit copyrighted distant network programming without violating federal law.

CBS, Fox and network affiliates associations had contended that an injunction under the Satellite Home Viewer Act prohibits a satellite carrier’s secondary transmissions of distant network programming, and EchoStar’s lease agreement with National Programming Service LLC therefore breaches the law.

But the U.S. Court of Appeals...