TiVo Inc., the digital-video-recorder pioneer, settled a patent dispute with Google Inc.’s Motorola Mobility unit, Cisco Systems Inc. and Time Warner Cable Inc. for $490 million.
TiVo has agreed to enter into certain patent-licensing arrangements with Cisco and Google, the company said today in a statement. The payment will bring the total from awards and settlements related to the use of certain parts of TiVo’s intellectual property to about $1.6 billion. The company also said it has authorized a $200 million stock-buyback plan.
The settlement averts a trial that was scheduled to start next week, and eliminates one of the last holdouts in licensing Alviso, California-based TiVo’s technology.
“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,” Tom Rogers, chief executive officer, said in the statement. “Further, this settlement significantly enhances our already strong balance sheet, bringing our cash position to over $1 billion before inclusion of future expected payments of at least $400 million from prior settlements.”