AT&T settles TiVo patent infringement dispute

Communications company will pay more than $215 million

Chalk up another win for TiVo Inc.

The digital video recorder (DVR) company yesterday struck an agreement with AT&T Inc. in which the communications company will pay TiVo a minimum of $215 million and additional monthly licensing fees to settle a patent-infringement lawsuit.

TiVo, which was a pioneer in DVR technology, has long accused its rivals of violating its patents. The company recently has used litigation to make money from licensing fees. In May, TiVo scored a victory in a similar case against Echostar Corp., in which Echostar agreed to pay the company $500 million.

Yesterday’s agreement dictates that AT&T will pay TiVo $51 million upfront and $164 million in quarterly payments through July 2018. But AT&T also will pay monthly incremental licensing fees based on its DVR subscriber numbers. One analyst from research company Brean Murray told Thomson Reuters that AT&T could pay up to 10 percent or 20 percent more per year if its TV business keeps growing.

“No matter which projections you take, they all involve AT&T paying us significantly higher revenue than $215 million,” TiVo CEO Tom Rogers said in an interview.

Read the Wall Street Journal for more on this story.

Ashley Post

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