Telecom giant Verizon Communications
This isn't the first lawsuit TiVo's benefited from. DISH Network and EchoStar Corp. last year agreed to pay up to $500 million in fees and damages and earlier this year TiVo reached a $215 million agreement with AT&T.
The terms of the settlement with Verizon include a $100 million initial cash payment followed by quarterly payments totaling $150.4 million through July 2018. Verizon also agreed to pay monthly license fees through July 2018 to TiVo for each of its DVR subscribers over a certain level. TiVo will void $29.4 million in payments if the two companies work together well on certain joint initiatives.
Shares in TiVo surged as much as 7% Monday morning on the news. Verizon shares remained steady.
It was also announced today that Verizon has agreed to pay set-top box maker ActiveVideo more than $260 million to settle a patent dispute with that company. A District Court had previously ordered the company to pay; the companies agreed to cross-license their patents and abstain from suing each other for a period of years, according to an ActiveVideo press release that said the settlement was confidential. Verizon paid an unspecified amount of money on top of the $260 million, according to ActiveVideo.