TiVo to get $215 million from AT&T to settle patent dispute

TiVoTiVo Inc., set-top box maker and the company whose brand is same as that of digital video recorders, wins $215 million in AT&T Inc.’s patent dispute settlement. AT&T has also agreed to pay additional monthly licensing fees, to settle a patent violation dispute related to recording live TV, depending upon AT&T’s subscriber base of DVR users.

AT&T will pay digital-recorder-company $51 million upfront, due Tuesday, followed by quarterly payments through June 2018 totaling $164 million.

“No matter which projections you take, they all involve AT&T paying us significantly higher revenue than $215 million,” Tom Rogers, TiVo CEO, said. He said in an interview that he could not show the revenue TiVo could generate from the deal but he said “it’s a number that has us holding our head very high.” However, according to Todd Mitchell, an analyst for the firm Brean Murray, AT&T could have to pay 10-20% more per year, if its TV business keeps on growing.

TiVo’s shares rose 22% in extended trading.

The same patents could be the lawsuit by TiVo on Verizon and as AT&T case has been settled, now the parties will decide a schedule for the Verizon case.

This settlement is the second large victory of TiVo after it agreement with Dish Network and Echostar Corp in May. The companies, controlled by Charlie Ergen, settled the dispute by paying $500 million to TiVo.

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Reuters UK


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