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TiVo Receives $215M from AT&T Patent Lawsuit
TiVo enters into a mutual patent licensing agreement with AT&T that will net it $215 million in exchange for dropping pending litigation for patent infringement.
TiVo CEO Tom Rogers
TiVo will receive $215 million from AT&T after mutually settling a patent infringement lawsuit. As part of the settlement, TiVo and AT&T agreed to dismiss all pending litigation between the companies.
AT&T agreed to pay TiVo an initial payment of $51 million, followed by recurring quarterly guaranteed payments through June 2018, totaling $164 million, which together yield minimum payments of $215 million.
In addition to these minimum payments, AT&T will pay incremental recurring per subscriber monthly license fees through July 2018 should AT&T's DVR subscriber base exceed certain levels.
The parties also entered into a cross license of their respective patent portfolios in the advanced television field.
"We are extremely pleased to reach an agreement with AT&T, which acknowledges the value of our intellectual property," says 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. The combination of guaranteed payments and future additional fees paid to TiVo in the event that AT&T's pay TV business continues to grow in-line with consensus analyst expectations, represents hard-earned compensation for our IP enforcement efforts.
"The settlement also provides us rights to innovate TiVo products and services under license from AT&T and allows us to avoid significant legal expenses that we expect would have been incurred by us during and after trial."
TiVo first sued AT&T in the summer of 2009 after AT&T began a offering a competing version of the set-top box.
AT&T agreed to pay TiVo an initial payment of $51 million, followed by recurring quarterly guaranteed payments through June 2018, totaling $164 million, which together yield minimum payments of $215 million.
In addition to these minimum payments, AT&T will pay incremental recurring per subscriber monthly license fees through July 2018 should AT&T's DVR subscriber base exceed certain levels.
The parties also entered into a cross license of their respective patent portfolios in the advanced television field.
"We are extremely pleased to reach an agreement with AT&T, which acknowledges the value of our intellectual property," says 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. The combination of guaranteed payments and future additional fees paid to TiVo in the event that AT&T's pay TV business continues to grow in-line with consensus analyst expectations, represents hard-earned compensation for our IP enforcement efforts.
"The settlement also provides us rights to innovate TiVo products and services under license from AT&T and allows us to avoid significant legal expenses that we expect would have been incurred by us during and after trial."
TiVo first sued AT&T in the summer of 2009 after AT&T began a offering a competing version of the set-top box.
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About the Author
Jason Knott, Editor, CE Pro
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California.
1 Comments (displayed in order by date/time)
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The legal hassles surrounding Dish Network were a joke. It is about time the courts got it right and “induced” the infringers of TiVo’s patents yo pay up without the folly of the Dish suit.