DALLAS (CN) - TiVo said AT&T will pay it $215 million and sign a licensing agreement to settle patent infringement claims over digital video recording technology.
Dallas-based AT&T agreed to pay TiVo $51 million down, followed by recurring quarterly payments through June 2018 totaling $164 million. AT&T also will pay per-subscriber monthly license fees through July 2018 should AT&T's DVR subscriber base exceed certain levels.
TiVo, based in Alviso, Calif., has been selling hardware and subscriptions for its DVR technology since 1997. AT&T has been selling bundled television, Internet and phone service under its U-verse brand since 2008, featuring set-top DVR boxes.
TiVo and AT&T agreed to dismiss with prejudice all litigation pending between the companies and cross-license their patent portfolios in advanced television.
"We are extremely pleased to reach an agreement with AT&T, which acknowledges the value of our intellectual property," TiVo CEO Tom Rogers said in the statement.
"The settlement also provides us rights to innovate TiVo products and services under license from AT&T and allows us to avoid significant legal expenses that we expect would have been incurred by us during and after trial."Follow @davejourno
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.