TiVo has settled on pending litigation with AT&T, the US telco also entering into a patent licensing agreement with the next generation DVR technology provider.
Under the terms of the agreement, AT&T has agreed to pay TiVo an initial payment of $51 million, followed by recurring quarterly guaranteed payments through until June 2018, reaching $164 million, and which together will see a minimum payment of $215 million being made.
AT&T will pay incremental recurring per subscriber monthly licence fees up to July 2018 providing AT&T’s DVR subscriber base exceeds set targets.
“We are extremely pleased to reach an agreement with AT&T, which acknowledges the value of our intellectual property,” said Tom Rogers, CEO and President of TiVo. “This settlement, on the heels of our recent operational success that has resulted in the growth of TiVo’s overall subscriber base, is another major accomplishment for TiVo and we believe a great outcome for our shareholders.”
All pending litigation between the two companies will now be dismissed.
In May 2011, TiVo agreed a $500 million settlement with Dish and EchoStar Corp, ending long-running legal action over its Timewarp technology. TiVo has long accused rivals of being in violation of its patents.
