ViaSat has filed for an injunction to ban Space Systems Loral from building certain HTS spacecraft after winning a patent infringement case against its one-time satellite maker.
The US operator wants to stop SSL from selling satellites that are too…
ViaSat has filed for an injunction to ban Space Systems Loral from building certain HTS spacecraft after winning a patent infringement case against its one-time satellite maker.
The US operator wants to stop SSL from selling satellites that are too similar to the Jupiter-1 bird it built for Hughes, which in April was found by a jury to infringe ViaSat’s patents.
ViaSat, which worked with SSL several years ago on the ViaSat-1 satellite, was awarded US$283m earlier this year when the jury found the manufacturer had infringed three patents in building high throughput systems for other operators.
Its request for an injunction joins a raft of post-trial motions that are subject to a hearing on 7 August.
As part of its own motions, SSL and its former parent Loral Space & Communications are seeking a judgement from the trial court that the patents asserted by ViaSat in its suit are invalid.
“SSL filed several post-trial motions seeking a judgment by the trial court as a matter of law that the jury’s damages award should be vacated in its totality or at the very least reduced and that SSL did not infringe the asserted patents or breach any contracts with ViaSat,” stated Loral in an SEC filing.
“SSL also filed a motion seeking a new trial.”
The manufacturer said it will vigorously oppose ViaSat’s post-trial motions, adding that it would appeal the case if it is unsuccessful or if its own motions are denied.
Loral, which agreed to indemnify SSL for damages in the case as part of its US$875m sale to Canada’s MDA in 2012, was not found by the jury to be liable for either the patent infringement or breach of contact actions, and this was not challenged through ViaSat’s post-trial motions.
Nevertheless, the case has complicated an ongoing sales process for Loral, which holds majority economic stakes in Canadian satellite operator Telesat and Spain’s XTAR, a joint venture that offers X-band services to government customers.
That process is reportedly being run by Credit Suisse and comes alongside Morgan Stanley’s attempt to find a buyer for Telesat, which Loral shares with Canada’s Public Sector Pension Investment Board.
According to Loral’s SEC filing, a change of control of the group would trigger a US$200m cap on its indemnification liability in its ViaSat lawsuit.
Quinn Emanuel Urquhart & Sullivan represented Viasat, while SSL hired Susman Godfrey.
