AT&T to Pay $215 Million to TiVo in Patent Settlement

ALVISO: AT&T has agreed to pay TiVo a total of at least $215 million through June 2018 to settle pending patent litigation relating to digital video recorder technology.

AT&T will make an initial payment of $51 million, followed by recurring quarterly guaranteed payments through June 2018 totaling $164 million, which together mean minimum payments of $215 million. AT&T will also pay incremental recurring per subscriber monthly license fees through July 2018 should AT&T’s DVR subscriber base exceed certain levels.

The two have agreed to dismiss all pending litigation and enter a cross licensing agreement.

"We are extremely pleased to reach an agreement with AT&T, which acknowledges the value of our intellectual property," said Tom Rogers, CEO and President of TiVo. "This settlement, on the heels of our recent operational success that has resulted in the growth of TiVo’s overall subscriber base, is another major accomplishment for TiVo and we believe a great outcome for our shareholders. The combination of guaranteed payments and future additional fees paid to TiVo in the event that AT&T’s pay TV business continues to grow in-line with consensus analyst expectations, represents hard-earned compensation for our IP enforcement efforts. The settlement also provides us rights to innovate TiVo products and services under license from AT&T and allows us to avoid significant legal expenses that we expect would have been incurred by us during and after trial."