Danish Sky Radio loses court case, but says it will appeal

[BGonaSTICK]

Sky Radio has lost a court case brought by the Danish Government, and has been ordered to pay 210 million Danish kroner (€25 million) to the government as compensation for breaking its contract. Sky Radio says it plans to appeal the decision.

Sky Radio Denmark went on the air in 2003 with a licence valid for eight years, but closed down in November 2005 due to heavy losses. The licence cost €7 million per year, but Sky Radio refused to pay the remaining amount on the basis that FM coverage was less than the government had claimed when it issued the licence. Instead of the promised 78% coverage, Sky Radio claims that its coverage was only 63% of the country.

The court ruled that Sky Radio could and should have checked the actual coverage prior to applying for the licence. The judge pointed out that Sky Radio sold the licence to Danish broadcaster TV2, thereby making a profit. So the court feels justified in ordering it to pay 210 million kroner to the Danish government.

It remains to be seen on what basis Sky Radio will appeal the decision.

Source: Radiofreak