TiVo has made a patent settlement with Cisco Systems, Motorola Mobility, and Time Warner Cable. The companies will be able to avoid a trial expected to start next week. As part of the agreement, TiVo will receive $490 million from Google and Cisco. TiVo will also sign a patent licensing deal with Cisco, Google, and Arris Group. Google will collect the legal licensing fees on behalf of their subsidiary Motorola Mobility. Google sold Motorola’s set-top making unit to Arris earlier this year.
“We are pleased to reach an agreement that brings our pending litigation to an end and further underscores the significant value our distribution partners derive from TiVo’s technological innovations,” stated TiVo President and CEO Tom Rogers.
TiVo has been pursuing patent lawsuits after TV companies that utilize their patented technology in DVRs. TiVo previously negotiated around $1 billion in combined settlements against Dish Network, AT&T, and Verizon Communications. TiVo has been struggling to generate profits as they have posted annual losses in almost all of the past 10 years.
Motorola and Time Warner cable said that they were satisfied with the deal. TiVo’s total settlements have hit around $1.6 billion total. TiVo is now going to double their stock buyback program to $200 million and extend that plan for an additional two years.