Pay TV piracy hits Murdoch
A secret unit within Rupert Murdoch's News Corporation promoted a wave of high-tech piracy in Australia that damaged Austar, Optus and Foxtel at a time when News was moving to take control of the Australian pay TV industry,
a four-year investigation by The Australian Financial Review has revealed.
The piracy cost the Australian pay TV companies up to $50 million a year and helped cripple the finances of Austar, which Foxtel is now in the process of acquiring.
The AFR investigation has revealed a global trail of corporate dirty tricks directed against competitors by a secretive group of former policemen and intelligence officers within News Corp known as Operational Security.
Their actions devastated News's competitors, and the resulting waves of high-tech piracy assisted News to bid for pay TV businesses at reduced prices – including DirecTV in the US, Telepiu in Italy and Austar. These targets each had other commercial weaknesses quite apart from piracy.
The Australian Competition and Consumer Commission is still deliberating on final details before approving Foxtel's $1.9 billion takeover bid for Austar, which will cement Foxtel's position as the dominant pay TV provider in Australia.
News Corp has categorically denied any involvement in promoting piracy and points to a string of court actions by competitors making similar claims, from which it has emerged victorious. In the only case that went to court, in 2008, the plaintiff EchoStar was ordered to pay nearly $19 million in legal costs.
The issue is particularly sensitive because Operational
Security, which is headed by Reuven Hasak, a former deputy director of the Israeli domestic secret service, Shin Bet, operates in an area which historically has had close supervision by the Office of the Chairman, Rupert Murdoch.
The security group was initially set up in a News Corp subsidiary, News Datacom Systems (later known as NDS), to battle internal fraud and to target piracy against its own pay TV companies.
But documents uncovered by the Financial Review reveal that NDS encouraged and facilitated piracy by hackers not only of its competitors but also of companies, such as Foxtel, for whom NDS provided pay TV smart cards.
The documents show NDS sabotaged business rivals, fabricated legal actions and obtained telephone records illegally.
The actions are documented in an archive of 14,400 emails held by former Metropolitan Police commander Ray Adams who was European chief for Operational Security between 1996 and 2002.
The Financial Review is publishing thousands of the emails on its website at afr.com.
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The Financial Review is publishing thousands of the emails on its website at afr.com.
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And, below is some background info on the company NDS, that is involved in this.... read it for yourselves, criminals and spies.
Company Name
The company started out as News Datacom (NDC) in 1989, and later changed its name to News Digital Systems, hence its current name.
Management
NDS CEO Abe Peled is a former Israeli Army platoon commander who served during the Six Day War between Israel and the Arab states. The head of Security at NDS is Reuven Hasak, the former deputy head of Israel's Shin Bet security service. This role is conducted through Shafran Ltd., a Tel Aviv based `security consultancy' firm headed by Hasak and three other former senior Shin Bet officers.
Canal Plus lawsuit
NDS has in the past been accused of breaking other companies' satellite encryption schemes, and was involved in a lawsuit brought by Canal Plus. The lawsuit, filed on July 25 2003 in the United States District Court for the Central District of California, alleged that NDS spent huge sums to break Canal Plus's conditional access technology and published the code on the internet which allowed fraudsters to manufacture counterfeit smart cards. The company filed an amended complaint on October 9; however, this was dismissed. Other legal action by Echostar/NagraStar was being pursued as late as August 2005 accusing NDS of the same wrongdoing.
The Guardian, an independent UK broadsheet newspaper, broke the story with accusations that the NDS laboratory in Haifa, Israel had been working on breaking the France Telecom produced MediaGuard smartcards used by Canal+, ITV Digital and other non-Murdoch owned TV companies throughout Europe. In the front-page story, the Guardian accused NDS of deliberately extracting the UserROM code from the MediaGuard cards and then leaking it onto the internet. The theory was lent credibility by the fact that extraction of the code from the cards would have required extremely specialized knowledge and expensive equipment — specifically, a scanning electron microscope. SEMs are tracked and controlled, and thus obtaining them without leaving a paper trail is difficult.Template:Fact
Tax Evasion
NDS was investigated in 1996 for tax evasion in Israel. NDS offices were raided in October 1996 amid allegations of tens of millions of dollars of unpaid tax.
Subsidiaries
NDS owns Orbis, a leading provider of online gaming technology and Jungo who provide software for residential gateways." (end snip)
Here's Wikipedia's version as well...Plus you'll notice that it is mentioned that Information Technology Giant CISCO have made a bid to aquire NDS just this month...
Cisco's relationship with the spooks and deep state government is well known...
AND http://www.gizmodo.com.au/2011/07/china-enlists-cisco-to-spy-on-the-public/
Very Interesting..The connections are all there aren't they??
A13


