Comcast and TiVo have ended years of expensive and negative patent litigation against each other.
The disputes have stretched back in one form of another for some 15 years and concerned the use of TiVo’s digital technology within its set-top boxes.
The agreement to bury the hatchet sees the pair reach a licensing deal which is good until 2031 and includes “broad coverage” of all of TiVo’s technology while at the same time resolving all outstanding litigation between the two.
Over the years TiVo has won some of its arguments, and Comcast has won a few battles. TiVo says its H2/2020 revenues will jump by about $255 million which also reflects past payments for its technology.
TiVo’s owner Xperi says: “The terms of the agreement are consistent with TiVo’s well-established licensing program for the Pay-TV market. The agreement provides for an initial payment upon execution and ongoing payments through the remainder of the agreement. We are very pleased to conclude this agreement with Comcast, one of the world’s leading media and technology companies that is widely recognised for its innovative products and solutions,” said Samir Armaly, president, IP licensing of Xperi. “The agreement illustrates our ability to execute key renewals with our largest customers as the video market continues to experience significant technological and business evolution.”
“This deal provides us with a reasonable licensing solution for the company’s comprehensive patent portfolio while putting the litigation behind us,” added Peter Kiriacoulacos, EVP and chief procurement officer of Comcast. “We’re looking forward to a mutually successful relationship in the years to come as we continue to bring our customers the best entertainment experiences.”
Xperi’s share price rocketed 26 per cent to $17.65 a share in after-hours trading on November 9th.