EchoStar Payment Ends NDS Lawsuit - Twice

EchoStar Payment Ends NDS Lawsuit

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EchoStar

has paid NDS $18.9 million for damages, concluding a long lawsuit that was finally decided on Jan. 23 when the Supreme Court refused to hear an EchoStar petition, NDS revealed Monday.

NDS

pointed out that as sole prevailing party in the litigation, EchoStar failed to meet the legal definition of a prevailing party on any of its claims.

"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," said Abe Peled, NDS Group executive chairman. "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."

The lawsuit was originally started in 2003, when EchoStar filed a $2 billion claim against NDS, alleging that in the '90s NDS was responsible for the compromise of EchoStar's satellite television programming platform through the posting of code on the DR7 website.

In its defense, NDS established that NDS played no part in the compromise of EchoStar's security system.

In August 2010, the Ninth Circuit Court 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 $18 million and concluded: "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."

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