EchoStar-NDS Group Trial Nears Conclusion

The parties are in the final days of what was expected to be a month-long trial. In the suit brought by then-Echostar (now Dish Network) and the security firm it co-owns, NagraStar LLC, the digital-broadcast satellite company alleges that NDS, a rival security firm owned by News Corp., hacked Echostar smart cards. …

… Echostar is asking for $93.8 million in damages for itself and NagraStar for the actual cost of the swapping out the compromised cards.

If the jury finds in favor of Echostar and opts to apply statutory damages—$10,000 for each of the 100,000 compromised smart cards Echostar claims it had to replace in the U.S.—NDS could be on the hook for up to $1 billion in damages.

I assume that News Corp will appeal if the jury finds for EchoStar. In addition to ruinous damages, and potential shareholder lawsuits, News Corp’s FCC licenses could be at risk. I am not a lawyer and have only a vague understanding of the 1934 Act that established the FCC, but I think that companies that are convicted of financial misconduct are not allowed to have broadcast licenses.