AT&T (NYSE: T) is going to have to pony up $215 million to TiVo (Nasdaq: TIVO) as part of its patent infringement settlement with digital video recorder company TiVo, and the two providers have entered mutual patent licensing arrangement.
Following an initial payment of $51 million, the telco will make recurring quarterly payments to TiVo through June 2018, totaling $164 million, which would yield minimum payments of $215 million.
The telco will also pay incremental recurring per subscriber monthly license fees through July 2018 should AT&T's DVR subscriber base exceed certain levels.
TiVo said in a Reuters article that it believes the fees it collects from AT&T will "significantly exceed" the guaranteed minimum payment.
Both AT&T and TiVo also agreed to dismiss all pending litigation between the companies with prejudice and have entered into a cross licensing agreement of their TV technology patent portfolios.
AT&T hasn't been TiVo's only large target. The digital video recorder provider also won similar settlements with Dish Network (Nasdaq: DISH) and Echostar (Nasdaq: SATS), which agreed to a $500 million patent settlement in May.
Now that TiVo has settled with AT&T it will turn its attention to fellow ILEC Verizon (NYSE: VZ), which also is being sued by the company for similar patent infringement issue.
- Reuters has this article
- FierceCable has this coverage
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