Verizon Communications settles patents cases with TiVo and ActiveVideo

Verizon Communications has settled for patent lawsuits against both digital video technology companies TiVo and ActiveVideo after losing in separate cases. The company will pay both plaintiffs total of more than $500 Million in damages.

Both TiVo and ActiveVideo won their respective federal district court cases against Verizon Communications on the infringement of their patents. However, a settlement with both of them brings goodwill to the telecommunications giant.

TiVo and Verizon came to an agreement after the court handed down a $250.4 Million fine to the telco company. The latest agreement with TiVo engulfs certain agreements on mutual use of the digital video recording company’s patents. Verizon will pay them a licensing fee of $100 Million for the first time and quarterly payments through June 2018 accumulating an additional $150 Million.

Moreover, both companies closed a deal on partnership on several fronts including distribution of internet video. TiVo will partner with Verizon in its joint venture with Coinstar ‘s Redbox unit.

In another case, Verizon lost to ActiveVideo on patent infringement. The company will pay the internet video technology firm a total of $260 Million. Moreover, both companies have come to a mutual agreement on different other ventures.

“After the federal circuit’s decision affirming the validity of our patents and the jury verdict against Verizon, we are happy to announce that ActiveVideo has settled the dispute with Verizon,” ActiveVideo CEO Jeff Miller said in a statement. “While the terms of the agreement are confidential, we can confirm that the parties agreed to cross-license their patents, agreed not to sue each other for a period of years, and Verizon agreed to pay the $260 million previously ordered by the district court and an additional unspecified amount of money. In the end our technology and its value have been recognized.”

Verizon lost to ActiveVideo in a district court case in Virginia last year. However, the appeals court afterwards upheld the lower court’s decision on amount of fine.

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Posted by Usman Khalid on Sep 25 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.