Abstract
In what may turn out to be one of the most interesting incidents of early 21st century electronic business, a French company, Canal+ Group and two subsidiaries recently filed a lawsuit in US District Court for Northern California against NDS Group [NASDAQ:NNDS]. The basis for the complaint is that NDS, a UK-based company ‘spent large amounts of money and resources’ to break the security system underlying Canal+’s digital TV smartcard. The suit claims that NDS masterminded ‘a conspiracy to harm Canal+’s competitive position in the digital television market.’ The plaintiffs allege violations of US copyright law and the Racketeer Influenced and Corrupt Organizations Act, as well as the California Unfair Competition statute, all of which carry very serious penalties.
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