Kramer Levin Client Sirius’ Motion to Dismiss Granted; Decision in NYLJ

As reported as the Decision of Interest in the September 4, 2008 issue of the New York Law Journal, Justice Bransten of the Commercial Division of the Supreme Court, New York County, granted the motion of Sirius Satellite Radio to dismiss the amended complaint of Advanced Global Technology, LLC ("AGT"). AGT develops and distributes consumer electronics products, and it sought to have a Korean manufacturer, KRI, make HD radios for AGT to sell. KRI, at the time, was the primary maker of Sirius-compatible radio receivers (i.e., radios that receive the Sirius satellite broadcast). Also at that time, AGT was distributing a receiver that was compatible with the XM satellite radio service (XM and Sirius then being competitors). AGT alleged that Sirius tortiously interfered with its prospective business relationship with KRI by threatening to end its relationship with KRI if KRI worked with AGT. On Sirius’ behalf, we successfully moved to dismiss the original complaint, and that dismissal was affirmed on appeal—with AGT being given leave to appeal. Justice Bransten held that the added allegations of the amended complaint—that Sirius threatened to withhold payment from KRI and to cancel existing orders for which KRI had ordered the parts, thereby putting KRI in financial risk—did not amount to the crime of coercion, or wrongful means or egregious conduct required to state a claim. Michael S. Oberman argued the motion for Sirius; Peter A. Abruzzese, Eve Preminger and Yehudis Lewis worked on the motion.