RM1.3 billion suit filed against Astro operator

KUALA LUMPUR: A company supplying television support equipment today filed a RM1.3 billion suit against MEASAT Broadcast Network Systems Sdn Bhd.

AV Asia Sdn Bhd filed the suit this morning here against MEASAT Broadcast Network Systems, the company which operates Astro, for breach of mutual non-disclosure agreement over a satellite dish technology.

In the suit, filed at the High Court Registry here this morning, AV Asia is claiming RM1.3 billion for exemplary and aggravated damages.

It named Tele System Electronics (M) Sdn Bhd as the second defendant.

AV Asia CEO V. Vijaya Kumar was present this morning and the suit was filed by counsel Ravi Sodhi.

Ravi, when met with reporters following the filing, said his client had learnt that the Malaysian Communication and Multimedia Commission (MCMC) had made recommendations to MEASAT to conduct studies on the use of different satellite dish sizes and design to reduce existing rain fade problems inherent in the satellite dish.

Rain fade is a characteristic of satellite transmission in tropical weather conditions where, during rain, the satellite transmission would suffer from interruptions.

AV Asia claimed MEASAT used their confidential information to launch its Astro Byond high definition service at the end of 2009.

Ravi explained that on June 18, 2007, AV Asia requested Maspro, a Japan incorporated company which also provides television support equipment, to initiate research and later brought this to MEASAT.

A mutual non-disclosure agreement was then signed between both parties, dated Aug 1, 2008, and confidential information was shared during negotiations between both parties.

However, Ravi alleged that AV Asia later discovered MEASAT had disclosed the confidential information to tender bidders, Tele System Electronics.

"The complaint here is the mutual agreement that had been breached. The agreement only allowed the exchange of confidential information between the two parties," he said.

When asked about the amount of the claim, he said the amount stated was derived from the commercialisation of Astro Byond.

He added that AV Asia was also claiming for its losses, due to the alleged agreement breach, to be assessed.