DirecTV, NDS Announce Stay in Litigation

DirecTV and NDS Group have agreed to stay the litigation between them until the anticipated closing of the acquisition by NDS’ parent company, News Corp [NYSE: NWS], of 34 percent of DirecTV’s parent company, Hughes Electronics [NYSE: GMH]. The acquisition is undergoing regulatory review. Should the acquisition be completed, the litigation between the two companies will be dismissed.

Last September, DirecTV filed a lawsuit alleging breach of contract, fraud, breach of warranty and misappropriation of trade secrets against NDS over DirecTV’s conditional access system. DirecTV sought relief including compensatory and other damages.

The companies announced Tuesday that DirecTV will begin deploying a new conditional access viewing card, which contains disputed technology contributed by both DirecTV and NDS. In connection with their agreement to stay the litigation, the parties have entered into specified commercial arrangements, which include resolving outstanding payment issues with respect to the viewing cards.