After AT&T said it would pay at least $215 million to settle a patent lawsuit over DVRs, TiVo’s shares jumped in after-hours trading, reports Bloomberg.
AT&T will pay $51 million up front, with quarterly payments through June 2018 that will total $164 million, the story says. AT&T will also pay monthly license fees if its DVR users exceed certain levels, the piece adds.
TiVo’s shares jumped as much as 22% in extended trading, the story says.
TiVo Chief Executive Officer Tom Rogers said the settlement validates that there "is value in our intellectual property," according to the piece.
The settlement comes after TiVo lost customers to rival services from television providers such as AT&T and Verizon Communications, which TiVo had accused of using its patented technology. TiVo last year settled a seven-year battle with Dish Network for as much as $600 million, the story adds.