Judge to Verizon: Pay Royalties to ActiveVideo

Also: Netflix rises on Verizon takeover talk; Harmonic to retire StreamLiner servers; Moto and FourthWall sync set-tops with mobile devices

Jeff Baumgartner, Senior Editor

December 13, 2011

2 Min Read
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The latest chapter in the patent spat between Verizon Communications Inc. (NYSE: VZ) and ActiveVideo leads off today's cable news roundup.

  • U.S. District Judge Raymond A. Jackson denied Verizon's request to stay millions in royalty payments owed to ActiveVideo in the wake of a permanent injunction ordered late last month. Judge Jackson said a stay would let Verizon continue to infringe on ActiveVideo's patents without penalty. Verizon filed a separate stay request in the Federal Circuit on Monday night, a Verizon spokesman told Light Reading Cable. The injunction calls on Verizon to pay ActiveVideo $2.74 per subscriber per month, or about $11 million per month, based on Verizon's current base of about 4 million FiOS TV customers. The injunction is to become effective May 23, 2012 (Verizon has until then to develop a workaround), but monthly royalty payments are slated to begin on Dec. 16. ActiveVideo estimates that Verizon owes it up to $250 million. (See Verizon Slapped With Injunction Over FiOS TV and Verizon Ordered to Pay ActiveVideo $24.1M More .)

  • Netflix Inc. (Nasdaq: NFLX) shares jumped almost 7 percent Monday on speculation that Verizon is angling to buy the struggling streaming video firm instead of building its own over-the-top subscription service or possibly partnering with Netflix rival Redbox. Verizon President and CEO Lowell McAdam acknowledged at an investor conference last week that "there is a place for over-the-top here and it will be part of our strategy," bud did not elaborate. (See Verizon to Stream After Netflix .)

  • Harmonic Inc. (Nasdaq: HLIT) will phase out its StreamLiner line of video servers by the end of 2012 in favor of products such as ProMedia that are more adept to handle multi-screen video services, reports Multichannel News. Harmonic entered the server business in 2006 via its $45 million acquisition of Entone Inc. 's VoD assets. (See Harmonic Spends $45M on Entone VOD-Ware.)

  • Motorola Mobility LLC has agreed to use FourthWall Media Inc. 's Enhanced TV Binary Interchange Format (EBIF) platform in set-tops and to integrate FourthWall's cloud-based AirCommand system with Medios, Moto's multi-screen service management software suite. The AirCommand piece of the deal will look to connect Android-powered smartphones, tablets and other companion mobile devices to EBIF-enabled set-top boxes to help support apps such as remote DVR management, video playback and cross-platform interactive TV widgets.

  • The San Francisco Chronicle caught up with Amy Banse, a 20-year Comcast Corp. (Nasdaq: CMCSA, CMCSK) vet who's running a new venture fund for the company based in the area that will look to take minority stakes in startups that are of interest to Comcast.

    — Jeff Baumgartner, Site Editor, Light Reading Cable

About the Author

Jeff Baumgartner

Senior Editor, Light Reading

Jeff Baumgartner is a Senior Editor for Light Reading and is responsible for the day-to-day news coverage and analysis of the cable and video sectors. Follow him on X and LinkedIn.

Baumgartner also served as Site Editor for Light Reading Cable from 2007-2013. In between his two stints at Light Reading, he led tech coverage for Multichannel News and was a regular contributor to Broadcasting + Cable. Baumgartner was named to the 2018 class of the Cable TV Pioneers.

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