Premiere seeks damages over broken Kudelski encryption
In Germany, hackers have cracked the technology used by the Vaud-based Kudelski Group to encrypt television programs. Pay-TV broadcaster Premiere is now seeking compensation. Kudelski shares plunged on the stock exchange.
In Germany, hackers have cracked the technology used by the Vaud-based Kudelski Group to encrypt television programs. Pay-TV broadcaster Premiere is now seeking compensation. Kudelski shares dived on the stock exchange. Kudelski's Chief Financial Officer, Mauro Saladini, tried to defuse the situation: The replacement of the so-called smart cards at Premiere will cost the Group less than ten million francs, he told the Reuters news agency. This is in line with normal business planning and will not lead to extraordinary costs.
Saladini rejected fears that Kudelski could now lose one of its most important customers. The contract with Premiere runs until 2012 and can be extended for a further three years.
However, Premiere wants to negotiate with Kudelski about claims for damages, according to a spokesperson for the broadcaster in Munich. However, no legal action is planned: "We are in talks, nothing more is planned," the spokesperson explained.
In 2007, Premiere suffered a decline in sales to 0.985 billion euros. In the previous year, the company had generated sales of 1.055 billion euros. However, the operating result increased significantly despite the decline in sales.
Saladini rejected fears that Kudelski could now lose one of its most important customers. The contract with Premiere runs until 2012 and can be extended for a further three years.
However, Premiere wants to negotiate with Kudelski about claims for damages, according to a spokesperson for the broadcaster in Munich. However, no legal action is planned: "We are in talks, nothing more is planned," the spokesperson explained.
In 2007, Premiere suffered a decline in sales to 0.985 billion euros. In the previous year, the company had generated sales of 1.055 billion euros. However, the operating result increased significantly despite the decline in sales.
