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Netflix Settles Patent Spat with Kudelski Group

Netflix has reached an agreement settling a patent-infringement lawsuit filed more than two years ago by Swiss technology firm Kudelski Group.

The companies announced Tuesday that they have entered into a comprehensive “product relationship” enabling the Kudelski Group to integrate its Nagra anyCast content-protection and OpenTV products with the Netflix service. Financial terms of the settlement were not disclosed.

Under the agreement, the parties will dismiss all pending patent litigation in the U.S. and have agreed to a long-term stay of pending patent litigation in the Netherlands.

OpenTV, a subsidiary of Kudelski, filed a patent-infringement lawsuit against Netflix in December 2012, alleging that it had unsuccessfully tried to reach a licensing deal for several patents with the subscription-video provider after a year of negotiation. The suit sought unspecified monetary damages — including increased damages for willful infringement — and a permanent injunction barring Netflix from using the patents.

Netflix is the largest subscription video-on-demand provider in the world, with 53 million subscribers globally as of the end of the third quarter of 2014.

Kudelski Group, based in Cheseaux-sur-Lausanne, Switzerland, licenses technologies used in a range of services and applications for access control and digital rights management.

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