TiVo has announced that it has settled a patent dispute with AT&T, as both companies have entered into a licensing agreement. AT&T is said to have agreed to pay TiVo a total of $215 million, split between an initial payment of $51 million and recurring quarterly payments through 2018 totaling $164 million.
The announcement appears to mark the end of a dispute that has lingered for several years, after TiVo filed a lawsuit accusing AT&T of illegally using patented DVR technology without obtaining a licensing agreement.
“We are extremely pleased to reach an agreement with AT&T, which acknowledges the value of our intellectual property,” said TiVo chief executive Tom Rogers. “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.”
A separate but similar lawsuit filed against Dish Network and EchoStar resulted in a settlement worth approximately $500 million and paid out through 2017. TiVo has yet to fully detail the balance of income between patent litigation and sales of TiVo-branded equipment.
