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NDS said it's countersuing DirecTV and two of its subsidiaries, as well as a chip manufacturer and that manufacturer's North American sales affiliate which deals with the satellite TV provider.

NDS, News Corp.'s TV technology unit, said its countersuit, filed under seal as part of a lawsuit initiated by DirecTV last month, alleges that the satellite TV provider and the unnamed chip manufacturer misappropriated NDS's trade secrets and proprietary information, conspired to infringe on NDS patents, colluded to create unfair competition and breached agreements and licenses restricting the use of NDS intellectual property.

In a statement, NDS said that for at least two years DirecTV has allegedly been working with the chip manufacturer to develop a knock-off of NDS's latest generation smart card for DirecTV that infringes on NDS patents. Additionally, NDS claimed that DirecTV induced the chip manufacturer to breach agreements with NDS.

NDS also said DirecTV has been leaking confidential information related to its smart card to pirate websites to give the satellite TV service an excuse to break agreements with NDS and unveil its competing knockoff smart card.

In response, a DirecTV spokesperson said the NDS allegations "are a desperate attempt to shift blame for its own gross misconduct and shortcomings onto to its customer, DirecTV. These allegations are completely baseless and patently false."

DirecTV also said it stands by its complaint that NDS breached its obligations and defrauded the satellite TV service. "Our complaint is under seal, it is not appropriate to comment on the details of the lawsuit. Evidence supporting these allegations will be presented in court. We believe we have a strong case and we will prevail in court," the DirecTV spokesperson said.

From SkyReport (Used with Permission)
 

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Sounds like NDS may have a case. I hope they covered their tracks over at DirecTV.
 

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Originally posted by Tom_S
Sounds like NDS may have a case. I hope they covered their tracks over at DirecTV.
I think NDS is just trying to use smoke and mirrors to detract attention from themselves. NDS has a history of hiring hackers of its system as employees. One of NDS's former hacker employees receivedan empty VCR (no electronics inside) but it has $40,000 US in it. There is also a NDS hacker from Germany that "disappeared" for a week. When he was found he was found hanging in a public park.
Kinda makes you wonder.
 

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The point is it seems DirecTV HAS been developing there own card for some time now. Now have they infringed on NDS copyrights? I don't know. But, it sounds suspicious and NDS may have a case regardless of any transgressions on their side.
That's immaterial in this case.
 
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