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Verizon to pay more than $250 million in TiVo settlementUS-TIVOINC-VERIZON:Verizon to pay more than $250 million in TiVo settlement
(Reuters) - Verizon Communications Inc has agreed to pay digital video recorder pioneer TiVo Inc at least $250.4 million to settle patent litigation, sending TiVo shares up almost 10 percent in early trade.
Under terms of their agreement, TiVo said on Monday, Verizon will initially pay $100 million in cash and recurring quarterly payments totaling $150.4 million through July 2018.
In addition to the guaranteed compensation, Verizon will pay TiVo - whose brand is synonymous with digital video recorders - license fees on a monthly basis through July 2018 for each Verizon DVR subscriber in excess of certain predetermined levels.
The companies agreed to dismiss all pending litigation between them.
TiVo shares rose to $10.49 in early trade after closing at $9.56 in the regular Nasdaq session on Friday.
(Reporting by Neha Alawadhi in Bangalore; Editing by Joyjeet Das and Jeffrey Benkoe)
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