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Jury rejects Dish Network's $1B piracy claim



By GILLIAN FLACCUS, AP
15 May 2008 @ 03:41 pm EST

SANTA ANA, Calif. - A jury found Thursday that a company that makes encryption technology for DirecTV violated federal and state piracy provisions, but awarded rival Dish Network Corp. just $1,500 of the $1 billion it sought.

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DISH 18.06 -0.74
NWS 10.8 -0.23
NNDS 49.53 -3.46

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Dish Network, formerly EchoStar, requested $1 billion in damages against News Corp.'s NDS Group over allegations NDS hacked its satellite signals. The $1,500 award, the statutory minimum, stemmed from one incident of testing on the satellite broadcaster's encryption cards.

The case, originally filed in 2003, was heard in U.S. District Court in Santa Ana.

"This verdict is a complete vindication of NDS' position at trial, and it puts an end to the lie that NDS is any way responsible for ... piracy," said Darin Snyder, an attorney for NDS Group. "This is also a vindication of NDS' long-term anti-piracy strategy."

Dish Network spokeswoman Kathie Gonzalez said in a statement that the company was disappointed with the jury's damage award, but noted the panel did find NDS violated provisions of the Federal Communications Act and California law.

"We will continue to vigorously prosecute those individuals and companies that engage in stealing our satellite signals," she said in the statement.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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