Light Reading

Google Protects Arris From Big, Scary TiVo

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
12/20/2012
50%
50%

Arris Group Inc. faces a massive integration challenge with its $2.35 billion play for Motorola Mobility LLC's Home business, but execs spent most of Q&A portion of Wednesday night's conference call deflecting questions about the financial risk Arris faces from the pending patent lawsuit between TiVo Inc. and Motorola.

Arris Chairman and CEO Bob Stanzione got asked about that six ways to Sunday, and he stressed each time that Google has essentially indemnified Arris, should Motorola come out on the losing end.

The deal, he said, includes provisions that cap the potential liability Arris would face from any IP-infringement litigation already in progress, including the TiVo case.

Stanzione wouldn't specify the cap, saying only that it's "at a level that we expect will not be material." So, analysts needled and prodded him about it for about 20 minutes.

One analyst pressed for a ballpark figure: more than $1 billion? "No," Stanzione said. "The cap is nowhere near $1 billion. Our potential liability is a very small number."

Has Arris thought about the possibility of an injunction? "Yes, we have thought about that, and we do think it's a very remote possibility."

They have some legitimate concerns. TiVo has a good track record going, having already wiped the floor with Verizon Communications Inc., AT&T Inc. and Dish Network Corp. And now TiVo thinks it's owed "billions of dollars" in damages from Motorola.

Stanzione appeared to bristle a bit at the apparent perception that Motorola's going to get creamed by TiVo. "We believe we can negotiate our way through that if, again, we indeed lose the suit. That's not a given."

But who's Arris's decision-maker in the case? "We have no decision to make," Stanzione said. "Google has taken that risk off the table for Arris."

The TiVo Question dominated Wednesday's call, but we'll be following up soon with stories that cover other angles of a deal that's expected to have rippling effects on the cable industry.

— Jeff Baumgartner, Site Editor, Light Reading Cable



(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
1/5/2013 | 2:03:41 AM
re: Google Protects Arris From Big, Scary TiVo


If they spent so much time on this question, then the other concerns must be smaller, right? (Maybe.) (Sort of.) (OK, not necessarily.)

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
1/5/2013 | 2:03:40 AM
re: Google Protects Arris From Big, Scary TiVo


They're doing their jobs. We would do the same.


The bigger question, harder to ask, is the one about swallowing a company this size. Synergies don't happen until after that part's done. To be fair, I don't think there's a satisfactory answer Arris can give here right now -- they'll just have to go and do it.

shygye75
50%
50%
shygye75,
User Rank: Light Sabre
1/5/2013 | 2:03:40 AM
re: Google Protects Arris From Big, Scary TiVo


Synergies usually are no more difficult to find than Bigfoot. And they are usually no more difficult to execute than teaching Bigfoot how to tap dance. Bright side times two!

cmmurrey
50%
50%
cmmurrey,
User Rank: Light Beer
1/5/2013 | 2:03:37 AM
re: Google Protects Arris From Big, Scary TiVo


Google and Arris have a pretty good idea of their maximum liability. TiVo has now established some pretty clear parameters with Dish, AT&T, and Verizon settlements on reasonable and non-discriminatory licensing for the '389 patent. I think the ability to force an injunction still exists for TiVo if Moto/TWC won't agree to the parameters established in the other cases. The court, IMHO, would frown on this actually going to trial - hence the reason that Judge Gilstrap has mandated mediation in the case. 

Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
CEO Chat With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
They say there's no such thing as a stupid question, but I probably sail pretty close to the wind in some of my interviews for LR. But then that's one of the things I ...
Cats with Phones
Cats & Boxes: A Love Affair Click Here