Court Upholds Verdict in ViaSat Breach of Contract and Patent Infringement Lawsuit Against Space Systems/Loral

  Court Upholds Verdict in ViaSat Breach of Contract and Patent Infringement
                     Lawsuit Against Space Systems/Loral

Trial set for November to re-examine damages to ViaSat

PR Newswire

CARLSBAD, Calif., Aug. 12, 2014

CARLSBAD, Calif., Aug. 12, 2014 /PRNewswire/ -- A federal court judge has
upheld a jury's verdict that Space Systems/Loral (SS/L) breached its contract
with ViaSat Inc. (Nasdaq:VSAT) by misusing ViaSat's proprietary and
intellectual property and infringed ViaSat patents covering the groundbreaking
ViaSat-1 technology. In addition, the judge ordered a new jury trial on the
damages phase of the case, where ViaSat will be given the forum to present its
case to show the full damages caused by the breach and infringement. In April,
a jury awarded $283 million in damages to ViaSat.

ViaSat creates new ways to access advanced network applications with satellite
and other wireless networking systems that enable fast, secure, and efficient
communications to any location. The company provides networking products and
services for enterprise and consumer IP applications and is a key supplier of
military communications and encryption technologies to the U.S. government.

"The court's rulings supported our case in nearly all substantive
respects.Most importantly, the judge confirmed the jury's findings of
infringement and breach of contract, findings which were clearly supported by
evidence showing that SS/L willingly took our inventions and sold them to
Hughes," said Rick Baldridge, ViaSat president and COO. "That evidence showed
in detail how SS/L misappropriated our technology, including sending our
proprietary ViaSat-1 specification to Hughes and secretly trying to patent the
ViaSat-1 design as its own invention, among other illegal actions."

"We strongly maintain that SS/L's actions caused significant financial and
business harm to ViaSat, and we look forward to the opportunity to reinforce
the full extent of the damage in the November proceeding."

In addition, the court also set an August 26 hearing on ViaSat's motion for a
permanent injunction prohibiting SS/L from manufacturing or selling infringing
satellites or satellite components, including the continued manufacturing of
infringing satellites under construction.

In February 2012, ViaSat served a complaint for patent infringement and breach
of contract against SS/L and Loral Space & Communications related to the
unauthorized use of ViaSat's intellectual property, including technology
ViaSat developed for its ground breaking 100+ Gbps ViaSat-1 satellite. In
September 2013, ViaSat filed an additional complaint for patent infringement
against Space Systems/Loral (SS/L) related to the ongoing, unauthorized, and
willful use of ViaSat technologies. In April 2014, a federal court jury found
that SS/L breached the non-disclosure agreements and manufacturing contract
between the parties and also infringed three ViaSat patents relating to its
ViaSat-1 high-capacity satellite system. The trial was held in the United
States District Court for the Southern District of California.

ViaSat was represented by Quinn Emanuel Urquhart & Sullivan, LLP in the
lawsuit.

About ViaSat (www.viasat.com)

ViaSat creates satellite and other wireless networking systems that
efficiently deliver the most bandwidth for fast, secure, and high-performance
communications to any location for consumers, governments, enterprises, and
the military. The company offers Exede^® services in North America, which
feature ViaSat-1, the world's highest capacity satellite; worldwide mobile
satellite services, including global tracking and messaging as well as
high-speed in-flight internet; satellite broadband networking systems; and
network-centric military communication systems and cybersecurity for the U.S.
and allied governments. ViaSat also offers communication system design and a
number of complementary products and technologies. Based in Carlsbad,
California, ViaSat employs over 3,300 people in a number of locations
worldwide for technology development, customer service, and network
operations.

Safe Harbor Statement

This press release contains forward-looking statements that are subject to the
safe harbors created under the Securities Act of 1933 and the Securities
Exchange Act of 1934. Forward-looking statements include, among others,
statements that refer to the timing, receipt, and amount of any award and/or
the grant of any injunctive relief in the company's lawsuit with SS/L and
Loral. Readers are cautioned that actual results could differ materially from
those expressed in any forward-looking statements. Factors that could cause
actual results to differ include: our ability to realize the anticipated
benefits of the ViaSat-2 satellite; unexpected expenses related to the
satellite project; our ability to successfully implement our business plan for
our broadband satellite services on our anticipated timeline or at all,
including with respect to the ViaSat-2 satellite system; risks associated with
the construction, launch and operation of ViaSat-2 and our other satellites,
including the effect of any anomaly, operational failure or degradation in
satellite performance; negative audits by the U.S. government; continued
turmoil in the global business environment and economic conditions; delays in
approving U.S. government budgets and cuts in government defense expenditures;
our reliance on U.S. government contracts, and on a small number of contracts
which account for a significant percentage of our revenues; our ability to
successfully develop, introduce and sell new technologies, products and
services; reduced demand for products and services as a result of continued
constraints on capital spending by customers; changes in relationships with,
or the financial condition of, key customers or suppliers; our reliance on a
limited number of third parties to manufacture and supply our products;
increased competition and other factors affecting the communications and
defense industries generally; the effect of adverse regulatory changes on our
ability to sell products and services; our level of indebtedness and ability
to comply with applicable debt covenants; our involvement in litigation,
including intellectual property claims and litigation to protect our
proprietary technology; and our dependence on a limited number of key
employees. In addition, please refer to the risk factors contained in our SEC
filings available at www.sec.gov, including our most recent Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to
place undue reliance on any forward-looking statements, which speak only as of
the date on which they are made. We undertake no obligation to update or
revise any forward-looking statements for any reason.

Exede is a registered trademark of ViaSat Inc.

Logo- http://photos.prnewswire.com/prnh/20091216/VIASATLOGO

SOURCE ViaSat Inc.

Website: http://www.viasat.com
Contact: Scott Cianciulli, Brainerd Communicators, 212.986.6667,
cianciulli@braincomm.com
 
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