TiVo Inc. rose as much as 22 percent in extended trading Tuesday after AT&T Inc. agreed to pay at least $215 million to settle a patent lawsuit over digital video recorders.
AT&T will make an initial payment of $51 million, followed by quarterly payments through June 2018 totaling $164 million, Alviso, California-based TiVo said in a statement Tuesday. AT&T also will pay monthly license fees if its subscriber base exceeds certain levels, TiVo said.
TiVo had sued the Dallas-based company in 2009, claiming AT&T’s U-verse service infringed its patents, including one for time-warp technology that lets users record a TV program and play it back at the same time.
TiVo rose to $10.91 at 5:17 p.m. New York time after closing at $8.92 in regular trading.
The case is TiVo Inc. v. AT&T Inc., 09cv259, U.S. District Court for the Eastern District of Texas (Marshall).
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