TiVo settles for less than expected with Motorola and Cisco
TiVo, which makes set-top boxes for televisions, has settled patent litigation with Google-owned Motorola Mobility, Cisco Systems and Time Warner Cable for a combined $490 million.
The settlement, which was announced last week, avoids the prospect of a trail over the patents at issue, which cover digital video recording and playback technology.
Networking equipment company Cisco said it will pay $294 million in the settlement, while it is understood that Motorola will pay the rest.
TiVo has signed licensing agreements with the companies as part of the settlement, and all litigation between the companies has ceased.
“We are pleased to reach an agreement that brings our pending litigation to an end and further underscores the significant value our distribution partners derive from TiVo's technological innovations and our shareholders derive from our investments in protecting TiVo's intellectual property,” said Tom Rogers, CEO and president of TiVo.
The terms of the settlement were less than many analysts had expected, and TiVo’ share price fell after it was announced. Motorola said in a statement that it was “pleased” to have resolved the litigation.
TiVo has sued a number of companies over the digital video recording patents in the last few years, with Verizon paying it $250 million and AT&T $215 million to settle litigation.
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