Judge to Verizon: Pay Royalties to ActiveVideo

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

  • Jeff Baumgartner 12/5/2012 | 4:46:40 PM
    re: Judge to Verizon: Pay Royalties to ActiveVideo


    Netflix is up again Tues. morning (just above 1%), but some analysts are skeptical that VZ would buy Netflix, telling The Street that Verizon would have a hard time convincing the board to buy a company whose stock has been spiraling downward and that  Netflix is out of its price range anyway, noting that VZ would probably end up spending less if it built something from scratch.  

     But the buyout rumor is the best news Netflix stock has gotten in months, which says something about the state of things there lately. JB



    shygye75 12/5/2012 | 4:46:38 PM
    re: Judge to Verizon: Pay Royalties to ActiveVideo

    It's good to see that degenerate gamblers are still playing the market.

    AESerm 12/5/2012 | 4:46:38 PM
    re: Judge to Verizon: Pay Royalties to ActiveVideo

    So is the VZ/Active Video legal action about up? No more appeals, just a possible VZ 'workaround'? Sounds like Amy Banse went against the grain by telling Silicon Valley illuminati that she started her day like 80 percent of Americans, by turning on her TV.

    Jeff Baumgartner 12/5/2012 | 4:46:31 PM
    re: Judge to Verizon: Pay Royalties to ActiveVideo

    I don't think VZ has exhausted its legal options here... they filed a different appeal in a differnt court, so they are going to fight this tooth and nail even if it's starting to look bleak.  But I do think you'll see a workaround come about even as they try to avoid paying ActiveVideo anything. JB

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