AV Asia Sdn Bhd, which filed a RM1.3 billion suit against Measat Broadcast Network Systems Sdn Bhd last month, has today filed an interlocutory injunction application against Measat.

The company, that provides television support equipment, also named Tele System Electronic (M) Sdn Bhd, a satellite dish manufacturer, as the other defendant in its application.

It filed the application to restrain Measat or its agents from making use of any confidential information supplied by them to Measat under their Mutual Non-Disclosure Agreement (MNDA).

In other words, AV Asia wants to stop Measat from supplying its customers with satellite dishes that the latter had manufactured using the technology allegedly provided by the plaintiff, that it holds as confidential information.

Messrs Watson Peters & Mohd Fuad filed the application.

NONE Accompanying lawyer Ravi Sodhi ( right in pic ) in the filing at the Kuala Lumpur High Court today was AV Asia’s managing director V Vijayakumar.

AV Asia had on Sept 28 filed a RM1.3 billion suit against Measat and Tele System Electronic.

It alleged in its statement of claim that Measat and Tele System were in violation of the MNDA dated Aug 1, 2008.

The agreement was for the plaintiff and Japanese company Maspro to develop a system to reduce the problem of ‘rain fade’ (disruption of broadcast during thunderstorms) that plagues Measat customers.

Upon completion of the testing and R&D (research and development) 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 anti-rain fade product in Malaysia.

Following AV Asia’s agreement with Measat, the former had provided the defendant with confidential information for the limited purpose of the MNDA, and Measat was to have taken reasonable steps to preserve the confidentiality agreement.

Serious questions to be decided

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

measat launch 220609 AV Asia also alleged that Measat 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.

Vijayakumar, in his accompanying affidavit, claimed that there are serious questions to be tried between AV Asia and the defendants.

He claimed that unless an injunction is granted, they will suffer irreparable damages that may not be compensated.

Vijayakumar alleged Measat had breached the terms of the MNDA and that there was a proper case for the court to grant the interlocutory injunction.

He also argued that the defendants will not suffer any prejudice if the court grants the injunction.

Vijayakumar added that granting an injunction was purely to maintain the status quo between all parties pending further orders by the court.

He also claimed Measat had used confidential information to launch the Astro B.yond high definition product, that he alleged is a scam product.

According to Vijayakumar, customers need not install a new satellite dish to receive high definition transmission, and he alleged that such information was withheld from customers.

Measat: 'Confidential information not used'

Meanwhile, Measat (MBNS) today responded by disputing that the injunction is appropriate, and denied the plaintiff’s allegations on their high-definition products.

astro satellite dish “The dispute in question is governed by an arbitration agreement and should be referred to arbitration as the proper forum,” said an Astro spokesperson in an email statement.

“MBNS has accordingly, through its lawyers, made an application for a stay of proceedings pending arbitration. MBNS has not received any application for an injunction but believes that any such application is inappropriate.

“The HD service has been available to customers since December last year and the alleged use of confidential information is incorrect and strongly denied. The claim will be vigorously defended,” said the spokesperson.

“In the meantime, we wish to reassure our customers that MBNS remains committed to continue serving our customers, and providing a range of innovative services such as High Definition (HD), Personal Video Recording (PVR) and soon, Video On Demand (VOD).

"The Astro B.yond evolution is in tandem with global best practices and we remain committed to enhance our value proposition to our customers," said Astro.

In the meantime, AV Asia’s lawyer Ravi told reporters after the filing that he received information that the court has fixed this Friday for arbitration.

However, he asserts that the arbitration was not filed by AV Asia and was probably made by Measat.

He said no date has been fixed yet for their suit.