National Satellite Sports, Inc. (NSS) (plaintiff) had the exclusive right to broadcast a certain boxing event to commercial establishments in Ohio, and Time Warner Entertainment Company L.P. (Time Warner) (defendant) had the exclusive right to broadcast the event to residential customers in Ohio. A bar owned by Eliadis Inc. (defendant) was erroneously listed as a residential customer and ordered the event through Time Warner’s service. After NSS discovered the bar had shown the event, NSS sued Eliadis and Time Warner, alleging that the showing of the event in a commercial establishment through Time Warner’s residential service constituted a violation of § 605 of the Federal Communications Act of 1934. NSS and Eliadis reached a settlement agreement, but the claims against Time Warner proceeded. The district court granted NSS’s motion for summary judgment, finding that Time Warner had violated § 605. Time Warner appealed, arguing that the district court erred by failing to give preclusive effect to a judgment against NSS in a prior litigation between the parties on an allegedly controlling issue.