[mili]

Source: Bloomberg News

LOS ANGELES -- DirecTV, the nation's largest satellite-television service, won dismissal of a lawsuit filed by people who claimed the company accused them of piracy in letters and attempted to extort money.

Los Angeles Superior Court Judge Charles McCoy ruled that DirecTV's letters were sent in connection with litigation, which is constitutionally protected speech. The letters were sent to people whose names turned up on invoices of raided companies as purchasers of piracy equipment. DirectTV has filed 2,000 federal lawsuits against people who failed to respond to the letters.

The win preserves DirecTVs ability to pursue a tactic it say is necessary to protect the company's proprietary interests. Signal pirates cost DirecTV millions in revenue last year, the company says, and it cut off service to at least 50,000 viewers who were improperly receiving its programming.

The court finds sufficient evidence "to show DirecTV sent its demand letters in serious contemplation of litigation," McCoy wrote in a four-page ruling dated Tuesday.

"I guarantee this will be appealed," said Jeff Wilens, a lawyer for the letter recipients who sued the company.

El Segundo, California-based Hughes is a subsidiary of General Motors Corp. Shares of Hughes rose 53 cents to $11.55 in New York Stock Exchange composite trading.