Case5:15-cv-02008-EJD Document1 Filed05/05/15 Page1 of 27
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`
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`Robert F. McCauley (SBN 162056)
`robert.mccauley@finnegan.com
`FINNEGAN, HENDERSON, FARABOW,
` GARRETT & DUNNER, LLP
`3300 Hillview Avenue
`Palo Alto, CA 94304-1203
`Telephone:
`(650) 849-6600
`Facsimile:
`(650) 849-6666
`
`Gerald F. Ivey (pro hac vice to be filed)
`Smith R. Brittingham IV (pro hac vice to be filed)
`Elizabeth A. Niemeyer (pro hac vice to be filed)
`John M. Williamson (pro hac vice to be filed)
`Aidan C. Skoyles (pro hac vice to be filed)
`FINNEGAN, HENDERSON, FARABOW,
` GARRETT & DUNNER, LLP
`901 New York Avenue, NW
`Washington, DC 20001-4413
`Telephone:
`(202) 408-4000
`Facsimile:
`(202) 408-4400
`
`Stephen E. Kabakoff (pro hac vice to be filed)
`FINNEGAN, HENDERSON, FARABOW,
` GARRETT & DUNNER, LLP
`3500 SunTrust Plaza
`303 Peachtree Street, N.E.
`Atlanta, GA 30308-3263
`Telephone:
`(404) 653- 6400
`Facsimile:
`(404) 653-6444
`
`Attorneys for Plaintiffs
`OpenTV, Inc., Nagravision S.A., and Nagra France S.A.S.
`
`
`UNITED STATES DISTRICT COURT
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`NORTHERN DISTRICT OF CALIFORNIA
`
`
`OPENTV, INC., NAGRAVISION S.A., and
`NAGRA FRANCE S.A.S.
`
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`Case No.
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`
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`COMPLAINT FOR
`PATENT INFRINGEMENT
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`DEMAND FOR JURY TRIAL
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`Plaintiffs,
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`Defendant.
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`COMPLAINT FOR PATENT INFRINGEMENT
`Case No.
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`v.
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`APPLE INC.,
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`Case5:15-cv-02008-EJD Document1 Filed05/05/15 Page2 of 27
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`Plaintiffs OpenTV, Inc., Nagravision S.A. (“Nagravision”), and Nagra France S.A.S. (“Nagra
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`France”) (collectively “OpenTV” or “Plaintiffs”) for their complaint against Defendant Apple Inc.
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`(“Apple”), allege as follows:
`1.
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`Plaintiffs, members of The Kudelski Group of companies, bring this patent infringement
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`action to stop Apple from continuing its wrongful and unlicensed use of OpenTV’s patented
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`technologies for, among other things, storing, providing, managing, delivering, securing, playing,
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`and viewing interactive content on smartphones, tablets, computers, digital televisions, and other
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`devices.
`2.
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`The Kudelski Group and its subsidiaries OpenTV, Inc., Nagravision, and patent: claim
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`France have a long and distinguished history of innovation, and today these companies design and
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`manufacture widely used, critically acclaimed, and award winning digital media technologies,
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`employ hundreds of employees in the United States and thousands worldwide, and protect their
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`research and development investment with a robust patent portfolio comprising thousands of patents
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`reflecting the efforts of years of innovation and effort by numerous inventors and engineers.
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`Plaintiffs encourage innovation by licensing their intellectual property portfolio, but enforce their
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`patent rights when necessary to protect their research investment and protect the fruits of the efforts
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`of their employees from unauthorized use.
`3.
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`Apple’s products and services, including its iOS-based mobile devices (e.g., the iPhone, iPad,
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`and iPod Touch), its Apple TV, iTunes, and App Store products and services, and its OS X-based
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`computers, make pervasive use of OpenTV’s patented technology and infringe one or more of the
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`following five United States patents (the “Asserted Patents”):
` 6,148,081 titled “Security model for interactive television applications” (“the ’081
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`patent”) (Exhibit A hereto);
` 6,233,736 titled “Media online services access system and method” (“the ’736
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`patent”) (Exhibit B hereto);
` 7,055,169 titled “Supporting common interactive television functionality through
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`presentation engine syntax” (“the ’169 patent”) (Exhibit C hereto);
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`Case5:15-cv-02008-EJD Document1 Filed05/05/15 Page3 of 27
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` 7,644,429 titled “Broadcast and reception, and conditional access system therefor”
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`(“the ’429 patent”) (Exhibit D hereto); and
` 7,725,740 titled “Generating a root key for decryption of a transmission key allowing
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`secure communications” (“the ’740 patent”) (Exhibit E hereto).
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`4.
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`Plaintiffs seek damages in an amount adequate to compensate them for Apple’s infringement,
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`a permanent injunction barring Apple from continuing to infringe OpenTV’s patents, and attorneys’
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`fees and costs associated with this action.
`I.
`5.
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`JURISDICTION AND VENUE
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`This lawsuit is a civil action for patent infringement arising under the patent laws of the
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`United States, 35 U.S.C. § 101 et seq. This Court has subject-matter jurisdiction pursuant to 28
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`U.S.C. §§ 1331 and 1338(a).
`6.
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`This Court has personal jurisdiction over Apple because Apple resides and has its primary
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`place of business in Cupertino, California, within this District. This Court also has personal
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`jurisdiction over Apple because Apple has committed, contributed to, and induced acts of patent
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`infringement and has regularly and systematically conducted and solicited business in this District
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`by and through at least its sales and offers for sale of Apple products and services, and other
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`contractual arrangements with Apple subscribers, customers, developers, distributors and third-party
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`service providers using Apple products and services located in and/or doing business in this District.
`7.
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`Venue is proper in this District under 28 U.S.C. §§ 1391(b) and 1400(b) because Apple
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`resides in this District, has a regular and established place of business in this District, and has
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`committed acts of infringement in this District.
`II.
`8.
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`INTRADISTRICT ASSIGNMENT
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`This action for patent infringement is assigned on a district-wide basis under Civil L.R.
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`3-2(c).
`III. THE PARTIES
`A.
`Plaintiffs OpenTV, Inc., Nagravision S.A., and Nagra France S.A.S.
`OpenTV, Inc. is a Delaware corporation whose principal place of business in the United
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`9.
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`States is located in San Francisco, California.
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`Case5:15-cv-02008-EJD Document1 Filed05/05/15 Page4 of 27
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`10.
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`Nagravision S.A. is a Switzerland corporation whose principal place of business is located in
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`Cheseaux, Switzerland.
`11.
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`Nagra France S.A.S. is a French corporation whose principal place of business is located in
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`Paris, France.
`12.
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`OpenTV, Inc., Nagravision, and Nagra France are subsidiaries of Kudelski SA. Kudelski SA
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`and its subsidiaries make up the various companies of The Kudelski Group. The history of The
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`Kudelski Group is one highlighted by over 60 years of innovation, award winning products, and
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`loyal, long-term customers who entrust The Kudelski Group with their business. Today, The
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`Kudelski Group is a major employer in the United States, Europe, Asia, and elsewhere, providing
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`jobs in manufacturing, engineering, research and development, marketing, sales, and many other
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`specialties with around 3,000 employees worldwide.
`13.
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`In 1951, Stefan Kudelski created the first company in what became The Kudelski Group and
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`launched the now legendary “Nagra” line of portable recording devices for cinema, TV, and radio
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`recording. Stefan Kudelski’s recording devices, and the inventions in them, were considered
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`revolutionary throughout the movie industry. The Nagra devices allowed precise synchronization of
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`audio tape with film, providing filmmakers with studio sound quality during on-location filming.
`14.
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`Throughout his career, Stefan Kudelski received numerous awards and honors for his
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`technological achievements, including four Academy Awards, two Emmy Awards, and Gold Medals
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`from the Society of Motion Picture & Television Engineers, the Audio Engineering Society, Lyra,
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`and Eurotechnica. Mr. Kudelski also was recognized by the FBI for his technology contribution in
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`audio recording. After Mr. Kudelski’s death in 2013, he was honored in the “in memoriam”
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`presentation during the 86th Annual Academy Awards in March 2014, described by a single word:
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`Inventor.
`15.
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`The success of the products that The Kudelski Group manufactured and sold in its early years
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`allowed the company to grow and expand. In 1989, The Kudelski Group expanded the scope of its
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`technological innovation by launching its first conditional access systems for pay TV. Over the next
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`decade, The Kudelski Group continued to expand its technology development in the digital
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`television domain, providing global, universally compatible solutions to manage, organize, enhance,
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`Case5:15-cv-02008-EJD Document1 Filed05/05/15 Page5 of 27
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`market, and secure digital content, regardless of whether it was transmitted over managed or
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`unmanaged networks, broadcast linearly or on-demand.
`16.
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`Today, digital television is The Kudelski Group’s core business. The Kudelski Group has
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`become a world leader in digital security and convergent media solutions for the delivery of digital
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`and interactive content. The Kudelski Group’s innovations are continuously contributing to the
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`evolution of the digital television ecosystem, enabling operators to extend their multimedia offerings
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`across the entire digital ecosystem to numerous client devices through traditional managed networks
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`as well as Internet delivery.
`17. Within The Kudelski Group, the principal operating company responsible for developing and
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`implementing innovative solutions for securing digital television content is Nagravision.
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`Nagravision provides innovative solutions for accessing interactive television content and creates
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`innovative security and access control solutions that provide optimal levels of protection throughout
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`the content distribution chain, from creation to consumption. Nagravision products and services
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`include open conditional access systems, digital rights management, and integrated on-demand
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`solutions for content providers and digital television operators over broadcast, broadband, and
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`mobile platforms. Nagravision’s technologies are used by over 120 pay-television operators in the
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`United States and internationally to deliver secure television content to a wide range of devices. In
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`particular, Nagravision has been an industry leader in recent years in the development of
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`technologies to secure delivery of paid content to mobile devices or to multiple devices connected by
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`a local wired or wireless network.
`18.
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`The Kudelski Group has also grown as a leader in the digital television domain through
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`acquisitions of pioneering technology companies, including such notable companies as Lysis,
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`Livewire, MediaGuard, SmarDTV, OpenTV, Inc., and most recently, Conax, a global provider of
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`content protection for digital TV services over broadcast, broadband, and connected devices.
`19.
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`OpenTV was founded in 1996 as Thomson Sun Interactive, LLC, a joint venture of Thomson
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`Multimedia SA and Sun Microsystems, Inc. In 1997, Thomson Sun Interactive LLC was converted
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`into a newly-formed corporation—OpenTV, Inc. From its inception, OpenTV, Inc. has been
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`dedicated to developing and commercializing cutting-edge, patented technology required for the
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`delivery of television and other media content to consumers through cable, satellite, and terrestrial
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`networks, and other managed and unmanaged networks.
`20.
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`OpenTV, Inc., has a long history of innovation in the field of software for set-top boxes for
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`television sets. Within four years of its creation, OpenTV, Inc. became the first interactive television
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`middleware provider to integrate its middleware technology in more than 10 million set-top boxes
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`worldwide—more than all other industry competitors combined. OpenTV, Inc. also partnered with
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`EchoStar’s DISH Network, which was the first satellite company to provide interactive television
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`services in the United States. OpenTV, Inc.’s set-top box middleware technologies were key to the
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`successful growth of DISH Network. Today, OpenTV, Inc. has partnerships with companies
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`worldwide, and its middleware has now been incorporated into over 200 million set-top boxes.
`21.
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`In addition to its industry-leading set-top box middleware solutions, OpenTV, Inc. has been
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`an innovator in web-based content delivery.
`22.
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`As a result of its ongoing commitment to interactive television and web-based content
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`delivery, by 2004-2006, OpenTV, Inc. led the industry in integrating browser software into
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`television sets, built the first interactive shopping application for DISH Network, successfully
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`launched real-time two-way interactive television shopping services on QVC, and provided the
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`technology for CNN Enhanced TV, among other notable achievements. All of these innovations
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`helped to pave the way for the growing revolution in how media content is delivered and enjoyed,
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`including over the Internet.
`23.
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`In addition to these achievements, OpenTV, Inc. also developed complementary technology
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`related, for example, to personal video recording (“PVR”), video-on-demand (“VOD”), television
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`home networking, advanced advertising methodologies, and tools for recommending content to
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`viewers. The industry has also long recognized OpenTV, Inc.’s technology contributions. For
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`example, OpenTV, Inc.’s PVR was named as one of the best in its field by Seagate Technology in
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`2009.
`24.
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`Today, OpenTV, Inc. develops software that enables intuitive and personalized viewing
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`experiences for consumers. OpenTV, Inc.’s software solutions provide a variety of advanced and
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`Case5:15-cv-02008-EJD Document1 Filed05/05/15 Page7 of 27
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`interactive services for television, including advanced user interfaces, VOD, PVR, high-definition
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`(“HD”), interactive and addressable advertising, and a variety of enhanced television applications.
`25.
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`Plaintiff’s products that are integrated with the OpenTV platform have won numerous
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`industry awards, including “Best New Technology” at the 2009 DISH Network Interactive Awards
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`for OpenTV, Inc., “Best Content Protection Technology” for Nagravision’s PRM solution at the
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`International Broadcasting Convention (IBC) trade show in 2010, a TV Innovation Award in the
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`category of “Advanced User Interface” for OpenTV, Inc.’s crossdevice user experience in 2010, an
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`IPTV World Forum Award for “Best Multiscreen Solution/Service” for Nagra Multiscreen in 2012,
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`and “Best IPTV Technology” for Nagra MediaLive and “Best Middleware” for OpenTV, Inc. at IBC
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`2012. Most recently, Nagravision’s Gravity user interface, which relies on OpenTV, Inc.’s next
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`generation middleware software, known as OpenTV5, was widely praised following the 2013
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`International Broadcasting Convention trade show as a stand-out product for showing “how the user
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`interface and the overall user experience can be enhanced with 4K screens,” “bring[ing] the HTML5
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`user experience and 4K to a new level,” and for providing a “stunning” and “compelling” user
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`interface.
`26.
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`OpenTV, Inc. became a part of The Kudelski Group in 2007 through The Kudelski Group’s
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`acquisition of a controlling stake in the company. OpenTV, Inc. became a wholly-owned subsidiary
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`of Kudelski SA in 2010.
`27.
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`OpenTV, Inc.’s integration into The Kudelski Group has allowed for commercial and
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`technological synergies between other Kudelski Group companies, such as Nagravision and Nagra
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`France, and continued innovation in the delivery of digital content. For example, in 2013 The
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`Kudelski Group introduced JoinIn, a connected home solution that allows users to seamlessly deliver
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`secured premium content across multiple devices within a home, including multiple TV screens and
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`mobile devices such as smartphones and tablets. JoinIn integrates OpenTV5 middleware with
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`Nagravision’s security and access control technology.
`28.
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`Through its dedication to developing innovative technologies, OpenTV’s technologies have
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`contributed to the explosive growth of content delivery and consumption across all broadband
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`networks, including increased consumption of Internet content by users.
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`29.
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`OpenTV, Inc. employs more than 200 people in the United States, while The Kudelski Group
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`as a whole, including Nagravision and Nagra France, employs nearly 400 people within the United
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`States.
`30.
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`The Kudelski Group, including its OpenTV, Inc., Nagravision, and Nagra France
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`subsidiaries, devotes substantial resources to research and development. In fact, The Kudelski Group
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`companies have invested over $3 billion in R&D in the past 20 years.
`31.
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`To protect their investment in R&D, OpenTV, Inc., Nagravision, Nagra France, and the other
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`Kudelski Group companies have garnered a robust international portfolio of over 4,400 worldwide
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`pending and issued patents, including many related to the delivery of end-to-end secure media
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`solutions for digital content, and continue to substantially grow their worldwide patent positions in
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`this and other complementary technology areas. Over 1,000 of these patents and applications
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`worldwide belong to OpenTV, Inc., over 1,900 belong to Nagravision, and over 400 belong to Nagra
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`France.
`32.
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`These patents include key technologies related to content management and delivery systems,
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`content recommendation engines and targeted content delivery, subscriber management systems and
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`tools, Digital Rights Management (“DRM”) and other content access control techniques, billing and
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`payment systems, user interfaces, digital video recorder (“DVR”) content storage and scheduling,
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`end-to-end digital content security, including securing digital content within the home network,
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`VOD content selection, advanced advertising techniques, and many others.
`33.
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`Companies worldwide have acknowledged the commercial importance of The Kudelski
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`Group’s patent portfolio, taking licenses relevant to their businesses. Notably, Cisco Systems, Inc.
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`licensed The Kudelski Group’s patent portfolio in January 2014, Google licensed The Kudelski
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`Group’s patent portfolio in April 2015, and Disney licensed The Kudelski Group’s patent portfolio
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`in April 2015.
`B.
`Apple is a California corporation with a principal place of business in Cupertino, California.
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`Apple Inc.
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`Apple is a major designer and manufacturer of computer technologies, including personal
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`34.
`35.
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`computers, mobile communications devices, portable digital music and video players, and related
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`software. Apple was formerly known as “Apple Computer, Inc.,” but changed its name in 2007 to
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`reflect a broadened focus on mobile computing devices, computing services, and content delivery as
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`well as personal computers.
`36.
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`The company’s products and services include:
` mobile devices such as the iPhone, iPod Touch and iPad that use Apple’s iOS
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`operating systems (collectively, “iOS devices”);
` personal computers, including desktop computers and laptops such as the “MacBook”
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`line that use Apple’s OS X operating system (collectively, “Mac OS X devices”);
` products to support access to streaming content, such as Apple TV;
` a portfolio of consumer and professional software applications, including iTunes, the
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`iTunes Store, the Mac Store, the App Store, the iOS and OS X operating systems; and
` a variety of accessory, service and support offerings.
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`37.
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`Apple first introduced the iPod line of portable media players in 2001, along with the iTunes
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`music service. There are three current versions of the iPod—the ultra-compact iPod Shuffle, the
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`compact iPod Nano, and the touchscreen iPod Touch.
`38.
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`The iPhone is a line of smartphones designed and marketed by Apple, first introduced in
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`2007. The iPhone runs an operating system specifically designed for mobile devices, originally
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`designated by Apple as iPhone OS and since renamed iOS. Since releasing the iPhone, Apple has
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`expanded its line of devices running Apple’s iOS mobile operating system to include several
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`additional iterations of the iPhone (most recently the iPhone 6 and 6 Plus, introduced in 2014), the
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`iPad line of tablet computers first released in 2010, and multiple versions of its iPod line of portable
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`media players designated under the iPod Touch brand name and operating iOS. Since Apple first
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`introduced the iPhone, Apple has sold the vast majority if not all of its iOS-based products with
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`iTunes pre-installed on the devices.
`39.
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`Although Apple dropped the word “computer” from its name in 2007, Apple continues to be
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`a major manufacturer of computers, including both desktop and laptop computers. Apple frequently
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`brands its desktop computers with variants of the “Mac” trade name (for example, Mac Mini, iMac,
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`and Mac Pro), while Apple designates its laptop computers and other portable computers as
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`“MacBooks,” such as the MacBook Pro and MacBook Air. Apple’s current line of computer
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`products includes desktops and portable computers running Apple’s OS X operating system.
`40.
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`Apple TV is a digital media player developed and first sold by Apple in 2007. It is a small
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`form factor network appliance designed to play digital content from the iTunes Store, as well as
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`third-party applications, on an enhanced-definition or high-definition widescreen television. Apple
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`generates significant revenue from the sale of Apple TV devices as well as content purchased
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`through Apple TV. At a recent Apple shareholder’s meeting, Apple Chief Executive Officer Tim
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`Cook noted that Apple had generated significant revenue from Apple TV over the last year,
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`admitting that today, “it’s a little bit harder to call it a hobby.”
`41.
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`Apple iTunes is a media player, media library, and mobile device management application
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`and service developed and operated by Apple. Apple iTunes includes an application installed on
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`personal computers or mobile computing devices, as well as an online service operated by Apple. It
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`is used to play, download, and organize digital audio and video on a variety of Apple devices,
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`including Apple personal computers, mobile computing devices based on iOS, and Apple TV. Apple
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`also makes iTunes available for download for users of a wide variety of computing devices,
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`including computing devices made by companies other than Apple. For example, Apple has offered
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`several versions of iTunes that operate in the Microsoft Windows operating system, and generates
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`additional revenue from purchases made within iTunes by iTunes Windows users. Additionally,
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`Apple has periodically added new features to iTunes and offers new versions of the software to
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`existing iTunes users, in some cases through automatic updates. Through the iTunes Store, launched
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`in 2003, users can purchase and download a variety of content such as music, music videos,
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`television shows, audiobooks, podcasts, movies, and movie rentals, and ringtones. The iTunes Store
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`also includes the ability for users to watch movie previews which are streamed from a remote Apple
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`server to the user’s device. Users can also rent movies from the iTunes Store. When a user pays to
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`rent a movie, the movie is available for viewing within 24 hours of when they first start watching it.
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`Users can also access “Ratings and Reviews” and “Related” information about songs and podcasts
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`while they are listening to content on the iTunes Store. Apple has consistently advertised the
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`COMPLAINT FOR PATENT INFRINGEMENT
`Case No.
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`interaction between iTunes and its other computing and media products, including Apple computers,
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`the iPod, Apple’s mobile computing devices, and more recently Apple TV.
`42.
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`In the iTunes Store, content such as Video and apps are protected by Apple using an Digital
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`Rights Management (“DRM”) encryption scheme known as “FairPlay.” Using FairPlay, Apple
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`encrypts content using a key which is in part specific to the purchasing user. This way, content
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`purchased by a particular user can only be played on one of up to five devices authorized to use that
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`user’s iTunes account.
`43.
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`A substantial part of Apple’s business strategy relies on synergies between different Apple
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`products. Apple designs and markets its products to create a branded, closed “ecosystem” that
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`encourages consumers who use one Apple product or service to use it in conjunction with other
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`Apple products and services. For example, Apple computers and mobile devices direct customers to
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`purchase content from the iTunes store and App Store, while Apple encourages Apple TV customers
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`to stream Apple TV content to their Apple mobile devices using a software feature known as
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`“AirPlay,” which can link Apple mobile devices and/or OS X-based computers to a local wireless
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`network and provide encryption methods to secure content being streamed from one Apple device to
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`another.
`44.
`
`Notably, Apple’s recent success from its vast line of products and services has come years
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`after core technologies underlying these products and services were developed by others, including,
`
`in the present case, pioneering technologies developed by OpenTV.
`45.
`
`In addition, Apple’s business strategy relies on its sophisticated use of intellectual property,
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`by which it attempts to protect its product ecosystem through the offensive and defensive use of
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`intellectual property, including patents. Apple is an active patent buyer and seller, and as a
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`corporation, Apple is one of the largest filers of Inter Partes Review petitions with the USPTO. On
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`information and belief, Apple investigates and evaluates the patent portfolios of companies that
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`assert patents against it. In this case, for example, Apple raised other, unasserted OpenTV patents as
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`part of its challenge to the validity of an OpenTV patent in Germany. See Bundespatentgericht (Fed.
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`Pat. Ct.) BPatG 5Ni51/14 (EP) (filed Dec. 11, 2014). Apple would be aware of a prominent portfolio
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`such as that of The Kudelski Group as this portfolio is well-known in the industry. OpenTV, Inc. has
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`Case No.
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`asserted patents from its portfolio where appropriate against infringers. For example, in January
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`2014, OpenTV, Inc. and Cisco Systems, Inc. successfully ended litigation when The Kudelski Group
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`and Cisco entered a well-publicized license agreement. Furthermore, Apple and OpenTV, Inc. are
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`currently involved in ongoing patent litigation in this district. See OpenTV, Inc. et al v. Apple, Inc.,
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`3:14-CV-1622 (N.D. Cal.). The Kudelski Group has also licensed its patent portfolio in April 2015
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`to Google, a primary Apple competitor, and to Disney. Thus, Apple is aware of The Kudelski
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`Group’s portfolio at least by virtue of its role in the market, its licensing activities, the ongoing
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`litigation, and the impact of The Kudelski Group’s portfolio on Apple’s products. As a sophisticated
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`consumer of intellectual property, Apple would have known, or should have known, of the patents
`
`now at issue in this case.
`IV.
`46.
`
`BACKGROUND OF THE TECHNOLOGY
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`The technology at issue in this case generally pertains to the field of securely communicating
`
`data between devices and communicating large amounts of information such as streams of digital
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`video information or app data.
`47.
`
`Changes in technologies, business models, and consumer lifestyles are converging to propel
`
`the rise of online video and fundamentally transform TV, advertising, and content delivery methods.
`
`A major recent trend in delivery of digital online content is the development of “Over-the-Top”
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`(OTT) delivery of content (such as movies, television, and other media) over the Internet. OTT
`
`delivery is done through an ordinary Internet connection that is not tied to the type of content being
`
`delivered. In the OTT model, an Internet service provider is responsible only for ensuring that data
`
`can be received by the consumer through a provided Internet connection. Over-the-Top services
`
`bypass traditional distribution channels like cable and satellite by providing their content “over the
`
`top” of broadband networks.
`48.
`
`OTT content, including OTT content delivered by Apple, can often be viewed on a myriad of
`
`connected devices, such as televisions, gaming consoles, personal computers, tablets, smartphones,
`
`and many other connected devices. OTT services are the catalyst for much of the growth in
`
`consumption of online video and other online digital content.
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`COMPLAINT FOR PATENT INFRINGEMENT
`Case No.
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`49.
`
`To avoid having OTT services erode potential digital media revenue, content providers and
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`viewing devices must provide ways to secure access to the content, including Digital Rights
`
`Management (DRM), authentication, and parental controls. Advances in DRM have enabled content
`
`owners and distributors to securely distribute online video and protect playback across devices and
`
`platforms. This increased security and level of control has, in turn, helped establish online video as a
`
`viable revenue source and led to the proliferation of business models, including digitally delivered
`
`rentals, subscriptions, and downloads. Digital security mechanisms have thus permitted the
`
`migration of video to OTT delivery.
`50.
`
`Over the last few years, software ecosystems have been emerging as a significant part of the
`
`mobile domain. The marketplaces of these software ecosystems, including Apple’s iTunes Store,
`
`offer currently hundreds of thousands of applications or “apps” from tens of thousands of
`
`developers, and the ecosystems are in a tight competition. These app stores are digital distribution
`
`platforms for application software often provided as a component of an operating system on a
`
`desktop, smartphone, or tablet. Users can browse through different categories and genres of
`
`applications, purchase them (if necessary), and then automatically download and install the
`
`application on their connected device. To protect app stores as a revenue source, applications must
`
`be provided in a secure manner and verified before they are executed.
`51.
`
`The proliferation of a wider variety of devices—such as mobile computing devices—for
`
`viewing rich OTT content has created another new set of challenges relating to presentation of
`
`content in a user-friendly way. For example, users now expect to be able to access a wide range of
`
`TV and online content, including some premium content, through multiple platforms such as TVs,
`
`personal computers, and mobile computing devices, while content providers and advertisers seek to
`
`provide content across multiple platforms without compromising security and control. Additionally,
`
`for services such as streaming audio, users may expect a richer presentation of information than
`
`simply the audio stream alone.
`52.
`
`Over the past 20 years, Plaintiffs and other companies within The Kudelski G