Pace Micro sues YES and Eurocom for negligence

July 17, 2007 – UK set-top box manufacturer Pace Micro Technology has filed a NIS 42mn (US$ 9.82mn) lawsuit with the Tel Aviv District Court against satellite broadcaster YES and the Eurocom Group.

The lawsuit originates from a contract to supply set-top boxes to YES beginning in 2000: in 2004 YES sued Pace Micro for NIS 31mn, claiming that 184,000 set-top boxes supplied were faulty and did not record.  YES states that it paid NIS 150mn for the set-top boxes.

Pace Micro says in its statement of defence that the damage alleged by YES is not the UK firm’s fault, but was caused by the Israeli companies setting the wrong technical specifications for the set-top boxes - for example the temperature and humidity thresholds were allegedly set too low for the local climate.  Pace Micro also accuses the Israeli companies of a built-in conflict of interests, as Eurocom is both a shareholder in YES and also provides laboratory services for Pace Micro’s set-top boxes.

Pace Micro is suing YES and Eurocom for expenses accrued in providing spare parts, bearing the cost of repairs during the warranty period, and the loss of profit and revenue resulting from unnecessary repairs.  YES and Eurocom have yet to file statements of defence.