Loral and SSL Plan to Appeal Jury Decision in ViaSat Lawsuit

24 April 2014

Loral Space & Communications Inc. announced that the jury in the trial of the lawsuit with ViaSat, Inc. (ViaSat) returned a verdict against Loral's former subsidiary, Space Systems/Loral, LLC (SSL). The jury found that SSL infringed the patents asserted by ViaSat in the case and also that SSL breached certain non-disclosure agreements with ViaSat. Damages of $283 million were awarded against SSL. The jury also found that Loral was not liable for either patent infringement or breach of contract.

"We are extremely disappointed with the verdict," said Michael B. Targoff, Vice Chairman of Loral. "We continue to believe that SSL's conduct was consistent with, and in due regard for, all applicable and valid intellectual property rights of ViaSat and that SSL did not breach any contracts. We believe that SSL has strong grounds for a reversal of the jury verdict, which we believe will ultimately result in vindication of our position. Justice in this case hinged on the complicated history of satellite technology, which was understandably difficult for the jury to completely comprehend. In particular, the damages awarded were not in any way justified by the evidence presented."

Under the terms of the purchase agreement pursuant to which Loral sold SSL to MacDonald, Dettwiler and Associates Ltd. (MDA) in 2012, Loral is obligated to indemnify SSL for damages in the case, after a final non-appealable judgment has been entered. In addition, under the terms of the purchase agreement, following a change of control of Loral, the indemnification liability of Loral for damages in the case is subject to a $200 million cap.