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Intensity induced random varying birefringence leads to nonlinear Polarization Mode Dispersion (PMD) in addition to linear PMD. In this paper, the authors investigate the effect of nonlinear PMD on a sideband channels with respect to centre wavelength. It is shown that if three or more channels are launched in the fibre such that the two sideband signals are aligned along the fast and the slow axis respectively, the nonlinear PMD due to change in power of the centre wavelength will affect the two signals differently. The effect will depend on how the State Of Polarization (SOP) of the centre wavelength are oriented with respect to the fibre axis.
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