TiVo announced Monday it has reached a patent settlement with Verizon, awarding the DVR maker $250.4 million on top of monthly licensing fees through 2018.
The settlement comes following litigation regarding Verizon's use of features covered by TiVo patents as part of its FiOS service. Those features included simultaneously recording and watching different programs and automatic playback correction to adjust where in a program a video resumes.
Redbox Instant on the table
While TiVo was the monetary recipient in the settlement, it may well become a benefit to Verizon as well.
As part of the settlement, Verizon won't face any injunctions for its use of the patents, saving both companies from a long and costly legal process.
The two are also exploring future partnerships, including the possibility of making Redbox Instant content available through TiVo.
Redbox Instant was announced earlier this summer as a joint venture to provide streaming video content to Verizon subscribers. The service is still in its alpha testing stage before a launch later this year, and is intended to be a competitor to the likes of Netflix and Amazon Instant.
In the long run, bringing TiVo in on the deal could help out Verizon too, as it could strengthen the service that Verizon is already putting a significant investment into establishing.
Of course, negotiations with TiVo for future partnerships are only just beginning, so it's still too early to predict what shape Redbox Instant will ultimately take.
Via TiVo