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Read more at Counterparties Dallas Fed: Break up big banks Private equity's bigges threat is itself Follow Reuters Facebook Twitter RSS YouTube Read Heejun Han voted off "American Idol," eight remain 12:14am EDT Trayvon Martin shooting transforms part-time mayor 29 Mar 2012 JetBlue co-pilot calmly and quickly got jet down 29 Mar 2012 Public information restricted in case of slain teen 1:28am EDT Urine-soaked eggs a spring taste treat in China city | 29 Mar 2012 Discussed 248 Poll: Americans angry with Obama over gas prices 224 Cheney recovering after heart transplant: spokeswoman 218 Black friend defends shooter of Florida teen Watched Urine eggs a delicacy in China Thu, Mar 29 2012 Congressman dons a hoodie, gets kicked off House floor Wed, Mar 28 2012 Horror hits the runway in Japan Fri, Mar 23 2012 Murdoch's media empire strikes back Tweet Share this Email Print Related News Murdoch's media empire strikes back Thu, Mar 29 2012 UPDATE 3-Murdoch fights back against "lies and libels" Thu, Mar 29 2012 UPDATE 2-Murdoch to "hit back hard" on piracy allegations Thu, Mar 29 2012 TV piracy claims heap more pressure on Murdoch empire Wed, Mar 28 2012 UK lawmaker urges News Corp TV hacking claims probe Tue, Mar 27 2012 Analysis & Opinion Britain’s austerity experiment is faltering Donor row saps UK government’s austerity authority Related Topics Tech » Media » Rupert Murdoch » Related Video Fresh scandal hits News Corp Wed, Mar 28 2012 1 of 2. Police officers walk outside an entrance to News International in London in this July 10, 2011 file photo. Credit: Reuters/Luke MacGregor/Files By Georgina Prodhan LONDON | Fri Mar 30, 2012 3:30am EDT LONDON (Reuters) - Rupert Murdoch on Thursday declared war against "enemies" who have accused his pay-TV operation of sabotaging its rivals, denouncing them as "toffs and right wingers" stuck in the last century. Reports by the British Broadcasting Corporation and the Australian Financial Review newspaper this week said that News Corp's pay-TV smartcard security unit, NDS, had promoted piracy attacks on rivals, including in the United States. NDS and News Corp had already denied the claims, but on Thursday the media empire mounted a fight back as a corruption scandal that has plagued its British newspapers began to encroach on its far more lucrative pay-TV business. "Seems every competitor and enemy piling on with lies and libels. So bad, easy to hit back hard, which preparing," News Corp Chief Executive Murdoch, 81, tweeted. News Corp, whose global media interests stretch from movies to newspapers that can make or break political careers, has endured an onslaught of negative press since a phone-hacking scandal at its News of the World tabloid blew up last year. At its height last July, Murdoch told British parliamentarians: "This is the humblest day of my life," after meeting the family of a murdered schoolgirl whose phone News of the World journalists had hacked. On Thursday, it appeared that Murdoch had had enough of apologizing. "Enemies many different agendas, but worst old toffs and right wingers who still want last century's status quo with their monopolies," he tweeted. For an avowed republican such as Murdoch, describing someone as an upper class "toff" is a damning insult - although he is now seen by many in Britain as part of the establishment. The BBC has a long history of ideological clashes with BSkyB, which is 39 percent owned by News Corp, and both Rupert and his son James Murdoch have publicly attacked the British public service broadcaster over the years. The Australian Financial Review is owned by Fairfax Media, the main rival to Murdoch's News Ltd newspaper group in Australia. On Friday, an alleged target of the attacks, Australia's second-largest pay-TV provider, Austar United Communications, said there were no signs of any conspiracy. Austar, about to be taken over by larger rival Foxtel which is part-owned by News Corp in a $2 billion deal, said there was a piracy issue over a decade ago across the whole industry. "In Australia, we've had over 150 prosecutions subsequent to improvements in the copyright laws," Austar Chief Executive John Porter told Australian radio. "I've never once heard the name of NDS or News Corp in those investigations or prosecutions," Shareholders in Austar vote on Friday on the Foxtel takeover, which still needs regulatory approval. In a letter sent to the Australian Financial Review by NDS on Thursday, the company's executive chairman, Abe Peled, accused the newspaper of mischaracterizing NDS. "You repeatedly mischaracterize communications about third party pirate devices to suggest that NDS was responsible for those devices," Peled wrote."You further mischaracterize NDS emails to suggest that NDS encouraged piracy of competitor systems while ignoring evidence that NDS was responsible for bringing to justice the sources of that piracy." NEWSPAPERS ON THE OFFENSIVE Richard Levick, a public-relations expert, expressed sympathy for Murdoch although he would have advised a more measured response. "He's going to back to the old tools here, going on the attack, going for blustery headlines," he told Reuters. "I understand the natural inclination to do that and I have some personal sympathy with him." Murdoch's British newspapers, relatively subdued since the phone-hacking scandal emerged, have gone back on the offensive. The Sunday Times mounted a sting operation in which reporters posing as financiers were promised exclusive access to Prime Minister David Cameron in exchange for donations of 250,000 pounds ($400,000) a year. That led to the resignation of a fundraiser from the ruling Conservative party, forced Cameron to disclose details of guests at his apartment, and sparked a discussion on party funding. The Sun tabloid seized on an obscure tax the government planned to impose for the 2012 budget on hot pies, seen as a staple of a working-class diet, and offering readers a free pie. A week later, Cameron, his finance minister and the opposition leader were still vying to be seen as the most avid pie-eater at every photo opportunity. "INACCURATE CLAIMS" The latest allegations bring the crisis closer to Murdoch's son James, who sits on the board of NDS, which News Corp and co-owner private equity firm Permira agreed to sell for $5 billion to Cisco this month. The younger Murdoch, who is also chairman and ex-CEO of BSkyB, has been criticized for not uncovering the scale of phone-hacking at the News of the World, though he had not yet joined the newspaper operation when the hacking took place. He has since moved to New York after being promoted within News Corp to deputy chief operating officer, and has severed all ties with the British newspapers. His focus is now the company's international pay-TV operations, where he made his career. Chase Carey, News Corp's COO and James Murdoch's immediate boss, on Wednesday condemned the BBC documentary. "The BBC's Panorama program was a gross misrepresentation of NDS's role as a high quality and leading provider of technology and services to the pay-TV industry, as are many of the other press accounts that have piled on - if not exaggerated - the BBC's inaccurate claims," he wrote. NDS has complained that it was not asked for its side of the story before Monday's Panorama program, which said NDS had leaked secret codes that allowed rampant pirating of BSkyB rival ITV Digital, which went bust in 2002. On Thursday, NDS's Peled published a letter accusing Panorama of using manipulated emails to support its allegations. The BBC said the emails shown in the program "were not manipulated, as NDS claims, and nothing in the correspondence undermines the evidence presented in the program". Also this week, the Australian Financial Review published a story saying that NDS had allowed piracy to thrive at its client U.S. satellite broadcaster DirecTV, which Murdoch had ambitions to buy. It reported, on the basis of a four-year investigation, that NDS ran a secret unit in the mid-1990s to sabotage competitors. "We are not motivated in any way by any desire to damage any financial rival to the company that runs the Financial Review," the AFR's Editor-in-Chief, Michael Stutchbury, told Reuters. "We are simply following the story and publishing what we have uncovered." None of the evidence presented by Panorama and the AFR this week suggests that the Murdochs or any other News Corp executives were aware at the alleged practices at NDS. NDS has won several court cases brought by rivals accusing it of promoting piracy, while others have been dropped - in one case because News Corp bought a subsidiary from the rival, Vivendi, which at the time was struggling with debt. News Corp made $3.8 billion in revenues and $232 million in operating profit from satellite TV in its last fiscal year. It does not detail financial results for its newspapers but its British titles bring in less than 3 percent of group profit. ($1 = 0.6309 British pounds) (Additional reporting by Sakthi Prasad, James Grubel and Victoria Thieberger; Editing by Ed Davies, Will Waterman, Mark Potter and Ron Popeski) Tech Media Rupert Murdoch Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (3) Tiu wrote: Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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