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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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