US telco AT&T has agreed to settle a patent dispute with DVR technology provider TiVo and will pay about US$215 million (€165 million) to the TV technology specialist between now and 2018. The exact payment will depend on AT&T’s subscriber growth being in line with expectations.
AT&T follows pay TV provider EchoStar, which agreed to settle a similar patent dispute with TiVo earlier in the year. EchoStar agreed to pay US$500 million to the technology company. The terms agreed by AT&T, which marketed its DVR service heavily to potential customers, means that the telco will incur a higher cost per subscriber than EchoStar.
The latest settlement is expected to bring TiVo closer to profitability. TiVo is also pursuing AT&T’s IPTV rival Verizon for patent infringement.
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