Light Reading

Verizon to Pay TiVo $250M to Settle DVR Fight

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
9/24/2012
50%
50%



Verizon Communications Inc. (NYSE: VZ) has agreed to pay TiVo Inc. (Nasdaq: TIVO) at least US$250.4 million as part of a settlement that includes a cross-licensing patent agreement and a commercial distribution deal between the two sides. (See TiVo & Verizon Settle DVR Patent Spat .)

Verizon's agreed to make an initial cash payment of $100 million, followed by recurring quarterly payments totaling an additional $150.4 million through July 2018. And that number could rise, as Verizon is also on the hook to pay monthly license fees through July 2018 for each Verizon subscriber "in excess of certain pre-determined levels" that were not disclosed in a TiVo 8-K filing made on Friday (Sept. 21).

Additionally, up to $29.4 million of the money owed by Verizon can be erased if TiVo and Verizon strike "certain commercial initiatives" before Dec. 21, 2012. TiVo and Verizon have also agreed to explore an Internet video distribution deal linked to Verizon's new joint venture with Redbox Automated Retail LLC . (See Verizon & Redbox Boot Up Web Video Service .)

As a final component, the companies have also agreed to dismiss all pending litigation between them with prejudice. TiVo filed its suit against Verizon in August 2009, claiming the telco infringed on three TiVo patents: .S. No. 6,233,389 B1 ("Multimedia Time Warping System"); No. 7,529,465 B2 ("System for Time Shifting Multimedia Content Streams"); and No. 7,493,015 B1 ("Automatic Playback Overshoot Correction System"). TiVo claimed at the time that it tried, but failed, to strike a commercial agreement with Verizon.

Why this matters
The settlement buries the hatchet between TiVo and Verizon, with TiVo once again coming out on the winning end. The FiOS TV commercial component also gives TiVo another potential avenue to pursue with a major pay-TV provider.

The Verizon settlement comes more than eight months after TiVo scored a similar out-of-court settlement with AT&T Inc. (NYSE: T), which agreed to pay TiVo at least $215 million through the middle of 2018. TiVo still has a pending lawsuit against Time Warner Cable Inc. (NYSE: TWC) and Motorola Mobility. Cisco Systems Inc. (Nasdaq: CSCO) , meanwhile, has filed suit against TiVo, asking that four DVR patents be declared invalid. (See TiVo Sues Motorola & Time Warner Cable and Cisco Launches Preemptive Strike on TiVo.)

For more



— Jeff Baumgartner, Site Editor, Light Reading Cable



(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:20:34 PM
re: Verizon to Pay TiVo $250M to Settle DVR Fight


Well, guess this means we'll see Verizon look to port the TiVo UI/experience to its own hardware pretty soon... and the sort of thing TiVo's got going, anyway, as it looks to reduce its reliance on hardware, at least when it comes to service provider-leased boxes. We'll have more on that strategy and how it differs from the Comcast RDK aproach soon. JB

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
Between the CEOs
Metaswitch's New CEO Martin Lund Discusses His Role

9|2|15   |   11:27   |   (3) comments


Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers ...
Telecom Innovators Video Showcase
Nominum on Leveraging the Power of DNS to Deliver Superior Subscriber Experiences

9|2|15   |   07:13   |   (0) comments


Nominum CEO Gary Messiana talks about the challenges service providers face in competing for a much more sophisticated customer, a customer that has heightened expectations for more personalized and compelling digital experiences. Providers are focusing their efforts on delivering higher value subscriber services, retaining their existing customers and increasing ...
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
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.
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
T-Mobile CEO Plays Data Traffic Cop
Sarah Thomas, Editorial Operations Director, 8/31/2015
CEO Chat With Bill Gates
Steve Saunders, CEO and founder, Light Reading, 8/31/2015
Time to Monetize Cable WiFi
Alan Breznick, Cable/Video Practice Leader, 8/31/2015
Carolina Town Becomes First US 10-Gig City
Mari Silbey, Senior Editor, Cable/Video, 9/3/2015
Eurobites: Anite in OSS Tie-Up With Nokia
Paul Rainford, Assistant Editor, Europe, 9/4/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers with the agility to embrace new technologies quickly and the ability to deliver on substantial projects for global network operators.
The scene: Last Saturday, lunchtime, the interior of a shi-shi-foo-foo eatery in Manhattan's SoHo district.
Cats with Phones
It's a New Age... Click Here
When smartphones replace stuffed animals.