updated 11:45 am EDT, Mon September 24, 2012
Verizon agrees to pay TiVo at least $250 million and the two cross-license patents
The legal patent dispute between TiVo and Verizon has been settled, with the latter paying the former about $250.4 million and monthly licensing fees. Verizon will fork over $100 million initially and then pay the remaining amount in quarterly installments until it's paid off by July 2018. The monthly fees will only apply to FiOS DVR users above a certain level.
The two companies have otherwise agreed to future commercial arrangements that may see them work together and potentially reduce Verizon's balance owing by as much as $29.4 million. This is most likely to involve putting Redbox Instant service on TiVo boxes, in which Verizon has a joint venture. They are already in talks regarding this.
Another part of the agreement involves cross-licensing their respective patent portfolios in the advanced television field.
TiVo's cases against Cisco, Time Warner Cable, and Motorola over similar patent infringement are still pending.