40M judgment against CCU

The Knoxville News Sentinel reports that a federal jury in Tennessee has ruled in favor of a local Internet streaming company and ordered Clear Channel Communications to pay it 40 million bucks. Eonstreams, which once provided streaming for some CCU stations, claimed that a 2004 letter agreement made it the “preferred streaming service partner” for CCU stations for a three year period. But CCU denied that the letter was a binding contract and went with a competing service in 2005. The jury, however, ruled in favor of Eonstreams, now owned by VitalStream Holdings.

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