Verizon Communications is paying TiVo Inc. a little over $250 million USD to settle a patent lawsuit, which could potentially lead to other court victories for TiVo.
TiVo, the digital video recorder box company, will receive $250.4 million from
Verizon in a patent lawsuit regarding TiVo's digital video technology. Verizon will pay $100 million right away in cash, and pay the other $150.4 million via quarterly payments through July 2018.
But that's not all TiVo gets out of the deal. TiVo may also have its boxes support Verizon's upcoming video streaming efforts with Redbox, which will help them
compete with Netflix. Also, Verizon will pay licensing fees to TiVo on a monthly basis through July 2018 on a per-DVR customer deal.
Verizon gets something out of the deal, too -- all other pending litigation between the two has been put to rest.
TiVo is involved in many patent lawsuits concerning its video recording technology. Some of the other companies it's facing in court is Time Warner Cable and Motorola Mobility. The settlement with Verizon may set an example for Time Warner Cable and Motorola Mobility to settle as well.
