TiVo has settled its patent litigation with Verizon Communications, entering into a mutual patent licensing arrangement with the US telco.
Under the terms of the settlement, Verizon will provide TiVo total compensation worth at least $250.4 million.
Verizon and Tivo plan to explore the distribution of Internet video services developed through Verizon’s joint venture with Redbox by making content distributed via that service part of the diverse selection of linear and broadband-delivered content accessible to users of TiVo’s retail DVR products.
If these and other commercial initiatives take off then Verizon could receive a credit equal to $29.4 million.
“We are pleased to reach an agreement with Verizon which underscores the significant value our distribution partners derive from TiVo’s technological innovations and our shareholders derive from our investments in protecting TiVo’s intellectual property,” said Tom Rogers, CEO and President of TiVo. “We also look forward to working together on a variety of future opportunities as we continue to expand the content choices available to TiVo subscribers.”
In a separate announcement ActiveVideo Networks said it has resolved its own patent dispute with Verizon.