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What: Shares of TiVo (Nasdaq: TIVO) are fast-forwarding today, up by as much as 12%, after the company announced it had settled patent litigation with AT&T (NYSE: T).

So what: The two companies have entered into a mutual patent licensing arrangement. Under the deal, Ma Bell will pay $51 million to TiVo up front and subsequently fork over recurring quarterly guaranteed payments through June 2018, totaling another $164 million. Together, it all adds up to a minimum of $215 million in payments.

Now what: On top of that, AT&T will pay incremental recurring license fees per subscriber monthly through July 2018 if the company's DVR subscriber base exceeds certain thresholds. The pair are dismissing all pending litigation between them as part of the settlement, and they will cross-license patent portfolios related to advanced television. Verizon also currently has pending litigation with TiVo, so it may be the next to reach a settlement.

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