Pagon refused to renegotiate terms, so DirecTV started selling the premium channels to Pegasus' customers directly, causing the NRTC to sue DirecTV for interfering with the NRTC's contract.
The NRTC, Pegasus and DirecTV filed claims and counterclaims against one another, disputing the length of Pegasus' original contract with DirecTV and whether Pegasus had the right of first refusal to acquire comparable rights when it ended.