Rovi Corp shares dropped the most in three years after a judge ruled in favour of Netflix in the latest patent lawsuit defeat.
A US District Court judge issued a ruling granting Netflix motion for summary judgment on five of Rovi’s patents, finding them invalid. The patents in question were related to features and functionality provided for over-the-top video service, which has been used by companies including Apple, Google and Hulu according to the statement.
Shares of Rovi slid 20 per cent to $14 in New York, the worst drop since July 2012. The stock traded close to $70 in 2011. Rovi, formed through the 2008 merger of Macrovision and Gemstar, holds the patents for TV programming guides and products that are licensed to cable companies and others.