TiVo this morning said Verizon will pay it at least $250.4 million as part of a patent litigation settlement with the DVR maker.
According to TiVo, the terms of the settlement
"Verizon to TiVo will be comprised of a $100 million initial cash payment followed by recurring quarterly payments totaling an additional $150.4 million through
July 2018. If the companies pursue certain commercial initiatives prior to December 21, 2012, up to $29.4 million of the payments made by Verizon would be subject to a credit of an equal amount. In
addition to the guaranteed compensation, Verizon will also pay monthly license fees through July 2018 for each Verizon DVR subscriber in excess of certain pre-determined levels."
In addition to the cash payments, Verizon and TiVo said they are exploring "future distribution of Internet video services developed through Verizon's joint venture with Redbox
by making content distributed via that service part of the diverse selection of linear and broadband-delivered content accessible to users of TiVo's retail DVR products."