Dish Network announced on Monday a settlement with TiVo on all ongoing patent litigation.
Dish has agreed to pay TiVo US$500 million; $300 million will be paid immediately, and the rest will be paid in six installments between 2012 and 2017, according to The Washington Post.
This seven-year legal dispute with TiVo regards infringement of TiVo’s patent of its DVR technology.
Dish’s stock price increased 12 percent to $28.22 in midday trading Monday after this news release, along with strong first-quarter financial results, MediaPost reported.
Based on this settlement, TiVo will grant Dish Network a license to the Time Warp patent, the original patent in dispute in 2004. Dish will also grant a few more licenses for TiVo technologies, AVRev.com reported.
TiVo will in return help Dish promote the Blockbuster digital video service. Dish recently purchased the remaining assets of Blockbuster.
Image: Paul Sakuma / AP Photo via The Miami Herald