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A German Court Ruling May Threaten Apple Video Services

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A German Court Ruling May Threaten Apple Video Services

A German district court recently ruled that Apple Inc. (NASDAQ: AAPL) violated patents acquired by Kudelski's OpenTV business, a Swiss security company, according to a Reuters report.

The report said the ruling could force the iPhone maker to take certain video streaming features off popular products sold in Germany.

"The ruling by a three-judge panel at the Duesseldorf district court on Tuesday said that Apple must not supply software that infringes an OpenTV patent covering the mixing of video, audio and online information in a single video stream," Reuters reported.

Although Apple could make a move to come into compliance by removing/disabling features that go against infringe upon the patents, "the court's decision puts pressure on Apple to seek a licensing deal from Kudelski."

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Worst-case scenario, Apple would "have to pull the devices from the market."

Citing court documents, the report stated that the following products that could be affected: iPhones, iPad tablets, Mac computers, iTunes music service, Quicktime video software player and the Apple TV.

The report continued, stating that "since 2012 Kudelski has waged a high-profile campaign on intellectual property licensing, taking on some of the world's biggest technology groups in courts far and wide."

Kudelski's Other Forays

Settlement deals have been reached between Kudelski and Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), Cisco Systems Inc. (NASDAQ: CSCO) and Netflix, Inc. (NASDAQ: NFLX).

Last month, Kudelski signed a multi-year patent cross-licensing agreement with Verizon Communications Inc. (NYSE: VZ). Under the agreement, the parties will dismiss all pending patent litigation, including Verizon's Fios television service, video advertising functionality,and OTT streaming services, which includes AOL, Inc. (NYSE: AOL).

Meanwhile, "Apple released a new "Apple Events" app on the tvOS App Store for the fourth-generation Apple TV. The app will be used to live stream the Apple event set to take place on March 21 at 10:00 a.m. Pacific Time," Benzinga reported earlier.

Shares of Apple were recently seen trading at $105.80.

Image Credit: Public Domain

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