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| Met looks into claims ex-News Corp subsidiary aided attack on pay-TV rival | Met looks into claims ex-News Corp subsidiary aided attack on pay-TV rival |
| (about 1 hour later) | |
| The Metropolitan police is looking into allegations that a former News Corporation subsidiary was involved in helping computer hackers undermine BSkyB's ill-fated pay-TV rival ITV Digital. | The Metropolitan police is looking into allegations that a former News Corporation subsidiary was involved in helping computer hackers undermine BSkyB's ill-fated pay-TV rival ITV Digital. |
| It has emerged that in March the Met received an allegation of a "copyright offence" relating to the alleged activity of encryption technology business NDS around the year 2000, when it was owned by News Corp, and is assessing whether to launch a full investigation. | It has emerged that in March the Met received an allegation of a "copyright offence" relating to the alleged activity of encryption technology business NDS around the year 2000, when it was owned by News Corp, and is assessing whether to launch a full investigation. |
| "[I] can confirm that following a screening of Panorama in March 2012, a copyright offence has been alleged to the Metropolitan Police Service," said a spokeswoman for Scotland Yard. "The allegation was reported to police in March this year and relates to an alleged offence circa 2000." | "[I] can confirm that following a screening of Panorama in March 2012, a copyright offence has been alleged to the Metropolitan Police Service," said a spokeswoman for Scotland Yard. "The allegation was reported to police in March this year and relates to an alleged offence circa 2000." |
| The Met spokeswoman said that the allegation has not at this stage been escalated to the level of a full investigation, but that an information-gathering process has been started. "The matter is currently subject to assessment," said the spokeswoman. The assessment is being handled by officers from the Met's specialist crime and operations command. | |
| The allegation stems from a BBC Panorama report broadcast in March last year that linked NDS to the pirating of conditional access cards for ONdigital, giving viewers free access to channels operated by the Carlton and Granada-owned pay-TV rival to BSkyB, in which News Corp has a 39.1% stake. ONdigital, rebranded ITV Digital, collapsed in 2002. | The allegation stems from a BBC Panorama report broadcast in March last year that linked NDS to the pirating of conditional access cards for ONdigital, giving viewers free access to channels operated by the Carlton and Granada-owned pay-TV rival to BSkyB, in which News Corp has a 39.1% stake. ONdigital, rebranded ITV Digital, collapsed in 2002. |
| Panorama's claims were based on allegedly incriminating emails and interviews with two people apparently involved: a German hacker, who said he cracked the ONdigital codes, and the operator of a piracy website, who said he distributed the codes to other pirates to manufacture counterfeit conditional access cards. Both alleged that they were recruited on NDS's behalf by Ray Adams, its then head of UK security. | |
| Chase Carey, News Corp's chief operating officer and Rupert Murdoch's right-hand man, criticised the Panorama report last year, saying the BBC had "presented manipulated and mischaracterised emails to produce unfair and baseless accusations". | |
| Abe Peled, the chairman of NDS, accused Panorama of having "seriously misconstrued legitimate activities" the company undertakes in running its encryption business. | Abe Peled, the chairman of NDS, accused Panorama of having "seriously misconstrued legitimate activities" the company undertakes in running its encryption business. |
| He said the programme was in "flagrant disregard [of] the BBC's broadcasting code, misleading viewers and inciting widespread misreporting". | He said the programme was in "flagrant disregard [of] the BBC's broadcasting code, misleading viewers and inciting widespread misreporting". |
| NDS, based in Staines, near Heathrow, plays a key role in Murdoch's global media empire. It provides the encryption technology that enables BSkyB and News Corp's other pay-TV businesses around the world to issue subscribers with set-top boxes and conditional access cards that allow them to watch channels they have paid for. | NDS, based in Staines, near Heathrow, plays a key role in Murdoch's global media empire. It provides the encryption technology that enables BSkyB and News Corp's other pay-TV businesses around the world to issue subscribers with set-top boxes and conditional access cards that allow them to watch channels they have paid for. |
| In March 2012, before the Panorama report about NDS was broadcast, it was announced that the business would be sold to Cisco for $5bn by its joint owners, News Corp and private equity firm Permira. NDS also works with other companies and now supplies encryption software to a third of the world's pay-TV operators. | |
| News Corp and NDS had not responded to a request for comment at the time of publication. | News Corp and NDS had not responded to a request for comment at the time of publication. |