A RM1.3 billion suit has been filed against Astro service provider Measat Broadcast Network Systems Sdn Bhd and Tele System Electronic (M) Sdn Bhd, which supplies the Astro and Astro Byond dish to Measat customers.

The suit was firm suit against Measat 280910 lawyer ravi sodhi along with v vijaya kumar and chew weng kiat 02 filed at the Kuala Lumpur High Court's commercial division at 10.25am today by AV Asia Sdn Bhd, whose CEO V Vijayakumar (centre in photo) and consultant Chew Weng Kiat (extreme right) were present with their lawyer Ravi Sodhi (extreme left) .

Asked to comment, an Astro spokesperson said in a statement: "We have not been served with any legal proceedings thus far and are therefore not in a position to comment on the matter."

AV Asia alleged in its statement of claim that Measat and Tele System were in violation of a mutual non-disclosure agreement (MNDA) dated Aug 1, 2008.

The agreement was for the plaintiff and Japanese company Maspro to help develop a system to reduce the problem of ‘rain fade’ (disruption of broadcast during thunderstorms), which has plagued customers.

astro satellite dish AV Asia engaged Maspro on April 1, 2007, as its sales agent to promote Maspro products, and initiate R&D, design and manufacture of a satellite dish to reduce 'rain fade'.

Upon completion of the testing and R&D on Measat's satellite dish, an expert report was submitted.

Maspro had on Aug 1, 2008 granted AV Asia the exclusive right to manufacture and sell Maspro's 'rain fade' product in Malaysia.

Following AV Asia’s agreement with Measat, the latter was given confidential information by the company for the limited purpose of the MNDA, and was to have taken reasonable steps to preserve the confidential agreement.

measat 3 satellite 121206 The plaintiff claimed that, on May 7, 2009, Measat had conducted a tender exercise inviting bidders to submit tenders to supply the satellite dish which formed the subject matter of the MNDA.

AV Asia also alleged that Measat had disclosed confidential information to bidders in the second tender exercise.

The company is seeking RM4.41 million in special damages to cover the cost of its R&D exercise and total loss of potential profit of RM1.342 billion.

AV Asia is also seeking exemplary and aggravated damages, claiming that Measat had used its confidential information to launch the Astro Byond high-definition product, which is alleged to be a ‘scam product’.

It is also seeking a restraining order against Measat from using the  information supplied and also from supplying such satellite dishes to its customers.

'No need for new dish for HD'

AV Malaysia claimed it is a fact known to Measat that customers need not install a new satellite dish to receive high-definition programmes, but that such information was withheld from its customers.

It said the satellite dish was made using the plaintiff's confidential information has a built-in 'rain fade' situation.

AV Asia claimed that, unless restrained by the court, the defendants may continue to use its confidential information.

It said Measat's customer population of three million subscribers was worth a potential yearly revenue of RM0.72 billion.

For this reason, AV Asia applied for the restraining order.

Vijayakumar said the company had spent RM4 million in R&D to develop a 'rain fade' system with the help of Maspro.

Ravi said they had tried to settle the matter out of court with Measat but could not arrive at an amicable solution.

"We had to file the suit after the negotiations failed," he said.

He added that the court has not fixed a date for case management.

Contacted this evening, he said the company would wait for the court to extract the documents, which will be served on Measat within one or two days.