AT&T settles patent suit with TiVo for $215 million

According to Adli Law Group,
Shares of TiVo increased by as much as 22 percent after communications giant AT&T agreed to a lawsuit settlement that will pay the digital video recording company at least $215 million in reparations for alleged violations of the company’s patent.
Los Angeles patent attorneys note from news reports on the settlement that TiVo will receive $51 million of the payment up-front. The rest will be disbursed to the company through quarterly payments between now and June 2019, according to a statement released by TiVo.
AT&T will also pay licensing fees when DVR subscribers exceed certain usage levels during the period of repayment. Based on the anticipated growth, it is expected that AT&T will end up paying far more than the $215 million base amount.
California-based TiVo was one of the first companies to develop external boxes used to record television programs at the same time another program was being accessed.
When other companies, including AT&T, came out with similar services, TiVo filed lawsuits claiming that those companies had used patented technology in their boxes.
Despite increasing competition for customers seeking digital video recording services, TiVo’s subscriber base is increasing — in November 2011 it experienced its first increase in subscribers in four years.
TiVo recently won a similar court case with Dish Network, and it has a lawsuit pending with Verizon Wireless that is similar to the one it had filed against AT&T.
The company reported fiscal earnings in the third quarter of 2011 to be $64.8 million.
Source: Bloomberg “TiVo Rises as AT&T to Pay $215 Million to Settle DVR Case…” Jan. 3, 3012