Key documents in EchoStar's $1 billion action against News Corporation's NDS encryption business have been published revealing the nefarious world of pay-TV piracy. Charlie Ergen's EchoStar is claiming NDS played a significant role in the cracking and subsequent publication of its encryption codes for the smart cards that protect it from piracy. Smart-card piracy is estimated to cost the subscriber-television industry up to $5 billion a year
The matter is due to be heard in the U.S. District Court in California, April 8, and is likely to see explosive revelations about practices associated with the secure-access industry. NDS has spent the last year trying to stop EchoStar from using internal NDS emails it claims were stolen, taken from an ex-NDS employee's car in the U.K. The Australian Financial Review has published a long piece detailing the espionage, deceit, theft and double-dealing associated with the business of access technologies. Smart cards protect about $25 billion in subscriber revenues a year. Also published are the EchoStar affidavits which are, of course, highly contested by News Corp.
French pay-TV provider Canal Plus also sued NDS for $1 billion but withdrew when News Corp. acquired its business.
For more:
- The murky world of pay-TV pirates AFR article
- Key documents are on a site run by a shareholder
Related article:
Korea launches IPTV with NDS Report
