Verizon Settles Patent Disputes For $510 Million
Verizon Wireless said Monday it settled a couple of patent disputes that will have the operator of FiOS TV paying about $260 million to ActiveVideo and around $250 million to TiVo.
ActiveVideo is known for its CloudTV platform used by Cablevision Systems and other providers, and Verizon had been accused of violating its patents involving interactive TV and VOD.
An appeals court already upheld a decision that verizon should pay ActiveVideo $260 million and the agreement between the two companies calls for that amount and possibly more, though the exact terms of the settlement weren't disclosed.
The settlement with TiVo, which involved a case over patents for DVR technology, has Verizon making an initial payment of $100 million followed by quarterly payments totaling $150.4 million through July, 2018.
Verizon also agreed to pay monthly fees and if the two companies agree before Dec. 21 to pursue certain commercial initiatives Verizon could earn a $29.4 million credit.
TiVo has sued several companies it accuses of violating some of its DVR patents and it usually prevails either by way of striking a licencing deal or via court decision, or a combination of both.
"We believe this settlement positions us well with respect to future enforceability of our patents," said TiVo CEO Tom Rogers.
In midday trading on Monday, TiVo stock was up 5 percent to $10 a share.