This settlement is far smaller than the $500 million TiVo collected from DISH Network
TiVo isn't done with its legal tactics quite yet. The company still has cases pending against Microsoft
So TiVo is well on its way to resolving all its lawsuits and expects legal costs to drop dramatically in 2012. The courtroom campaign is part of a larger strategy shift away from low-margin hardware sales and into a much more profitable technology licensing model. The idea is that DVR boxes running software either developed or at the very least approved by TiVo should be a valuable selling point for cable companies the world over. By all means, design your own solution around TiVo's technologies, but then you don't get to slap a "TiVo Inside" sticker on your service.
Settlement payments will eventually dry up as each case runs its course. TiVo wants to replace them with recurring license and service fees. I like what I see here, but The Motley Fool has found an even more promising stock idea for 2012. This brand-new special report is free but only for a limited time -- get yours today.
Fool contributor Anders Bylund owns shares of TiVo but holds no other position in any of the companies mentioned. The Motley Fool owns shares of Microsoft. Furthermore, Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.