…to hear a challenge by EchoStar1 (NASDAQ: SATS) and Kudelski (SIX:KUD.S), it has received full payment of US$18,935,399.49 for damages in recognition that NDS were found sole prevailing party and vindicated of all allegations of piracy. Dr. Abe Peled, Executive Chairman, NDS Group, said, “This brings an end to this long drawn-out process in which we vehemently denied all allegations of piracy which were made against us over a decade ago. Piracy is an issue throughout the industry and injurious to all in the value chain; it is only with the active anti-piracy efforts of companies such as ourselves that the pay-TV industry is able to evolve and continue to enable people to enjoy premium TV viewing. NDS is a global leader in the fight against pay-TV piracy, having repeatedly and successfully assisted law enforcement in that important effort. We have an established record of successfully protecting billions of dollars worth of content for our customers and will continue in our efforts to secure their business.”
He concluded: “It is testament to the work of our employees that our business, and that of our customers, has continued to grow and enable innovation in not only content security but software solutions that enable us to change the way the world is entertained and informed. As one of Europe’s largest software providers and the global industry’s leading, we are proud to be supporting industry growth and development for the next generation.”
- In 2003, EchoStar filed a US$2 billion claim against NDS alleging that in the 90’s NDS was responsible for the compromise of EchoStar’s satellite television programming platform through the posting of code on the DR7 website. NDS vigorously defended the allegations made against it, establishing that NDS played no part in the compromise of EchoStar’s security system
- In August 2010, the Ninth Circuit stated in its decision that “EchoStar did not succeed ‘on any significant issue’ or ‘achieve any of the benefit it sought in bringing suit’ under the Communications Act.” The Ninth Circuit awarded NDS US$18 million and concluded that “There is no question that NDS successfully defended against all of EchoStar’s claims based on or related to its theory that NDS was responsible for the compromise of EchoStar’s satellite television programming security system.”
- In February 2011, the Ninth Circuit further stated, “NDS was the prevailing party in this litigation and that EchoStar fails to meet the legal definition of a prevailing party on any of its claims.”
- In January 2012, the Supreme Court of the United States of America denied a petition to hear a challenge by EchoStar. EchoStar and NDS agreed that the terms for satisfying the judgment should be met by March 9, 2012
- On March 9, 2012, NDS received from EchoStar the remaining balance of US$18,935,399.49, in full satisfaction of the final judgment, including district court fees and costs, appellate court fees and costs and all interest
1EchoStar refers to the collective entities EchoStar Satellite Corporation, now known as Dish Network LLC, EchoStar Communications Corporation, EchoStar Technologies Corporation and NagraStar L.L.C., a joint venture company between the EchoStar parties and Kudelski Group
