It's time for Comcast to settle TiVo suit, Cowen & Co. analyst says

Rovi

Rob Stone, an analyst with Cowen & Co., says it is time for Comcast to settle with TiVo. The two companies have countersued each other over alleged patent violations.

In reiterating his “outperform” rating on TiVo shares, Stone cited a finding of violations on two TiVo patents by a U.S. administrative law judge last week and also continuing erosion in pay-TV subscriptions, which could represent an opportunity for TiVo. Comcast, by contrast, stands to incur “significant incremental legal costs,” he wrote.

The target date for completion of the investigation into the patent claims is Sept. 26. After that point, if nothing changes, the importing of infringing Comcast set-top boxes could be blocked at the port, Stone argued.

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceVideo!

The Video industry is an ever-changing world where big ideas come along daily. Cable, Media and Entertainment, Telco, and Tech companies rely on FierceVideo for the latest news, trends, and analysis on video creation and distribution, OTT delivery technologies, content licensing, and advertising strategies. Sign up today to get news and updates delivered to your inbox and read on the go.

Rovi Corp. acquired TiVo in 2016 for $1.1 billion and adopted the TiVo name. TiVo filed two federal lawsuits against Comcast. The first case, which covers the same six patents as the ITC case, was stayed, pending the ITC outcome. However, Rovi brought a second federal case, with eight more patents, for which a hearing is expected in July.

At issue are patents relating to features in Comcast’s X1 video platform, including the way Comcast implements remote recording, the “AnyRoom” DVR and search.

In its countersuit last June, Comcast said Rovi’s Texas-based patent suit violated the terms of a licensing deal that requires such disputes to be handled in New York.

Comcast argued that the company is covered by agreements reached in 2010 after it bought out Rovi’s interest in Guideworks, which was created to develop interactive programming guides for Comcast and others, according to a report in Cablefax.

The positive news on the judge’s ruling sent TiVo shares up 10% in Tuesday trading. The company announced last week that CEO Thomas Carson plans to leave TiVo after 11 years at the company.

Suggested Articles

Short-form video streaming service Quibi is without an important executive ahead of its April 2020 launch after Tim Connolly, head of partnerships and…

SSIMWAVE, a company specializing in quality of experience for video content, is adding the ability inspect Dolby Vision content for file-based streaming…

Comcast is defending its civil rights and diversity record as it prepares for a U.S. Supreme Court showdown with Entertainment Studios over a $20 billion…