AT&T to pay TiVo $215M to settle patent lawsuit

Shares in the DVR pioneer jump 15 percent in after-hours trading on the announcement.

AT&T has agreed to pay TiVo at least $215 million to settle a patent infringement lawsuit involving the digital video recorder pioneer.

Under the settlement, AT&T will pay TiVo more than that minimum amount, should AT&T's DVR subscriber base exceed certain levels, the companies said in a statement announcing the mutual licensing pact. The announcement sent TiVo shares up $1.38, or 15.5 percent, to $10.30 in after-hours trading.

TiVo sued AT&T in 2009 for damages, alleging infringements of TiVo patents Nos. 6,233,389 B1 (a "multimedia time-warping system"), 7,529,465 B2 (a "system for time-shifting multimedia content streams"), and 7,493,015 B1 (an "automatic-playback overshoot correction system").

TiVo CEO Tom Rogers said in a statement that he is pleased with the settlement.

"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 [intellectual property] enforcement efforts," Rogers said. "The settlement also provides us rights to innovate TiVo products and services under license from AT&T, and allows us to avoid significant legal expenses that we expect would have been incurred by us during and after trial."

The settlement with AT&T is the second TiVo has secured in the past 12 months. In May, Dish Network and EchoStar agreed to pay TiVo $500 million to settle a 7-year-old patent infringement case involving the same trio of DVR patents in the AT&T case.

About the author

Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers.


Join the discussion

Conversation powered by Livefyre

Show Comments Hide Comments
Latest Galleries from CNET
The breathtaking art and science of light
SkyBell's Video Doorbell chimes in (pictures)
Here's looking at you, Cloud LED (pictures)
Take a peek at Microsoft Word, PowerPoint and Excel for Android tablets (pictures)
Twitter's iOS app gets cool new features (pictures)
An iPhone 6 case designed for Moment lenses (pictures)