Verizon to pay over $250-mn to settle TiVo patent dispute
25 Sep 2012
US telecommunications giant Verizon Communications Inc has agreed to pay a compensation of at least $250.4 million to digital video recorder (DVR) company TiVo Inc to settle a patent litigation over video services.
Under the terms, Verizon's payments will comprise $100 million initial cash payment followed by recurring quarterly payments totaling $150.4 million through July 2018, TiVo said in a statement.
Additionally, Verizon will pay monthly licence fees up to July 2018 for each Verizon DVR subscriber in excess of certain pre-determined levels.
The companies are also exploring future distribution of internet video services developed through Verizon's joint venture with Redbox by making it accessible to users of TiVo's retail DVR products.
Earlier in February, Verizon had entered into a tie-up with Illinois-based DVD rental company Redbox to create an online movie subscription service. (See: Redbox ties up with Verizon to offer online movie service).
Verizon and TiVo have also entered into a cross licence of their respective patent portfolios in the advanced television field.
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