AT&T Inc has agreed to pay TiVo Inc a minimum of $215 million and additional monthly licensing fees to settle a patent infringement litigations case, sending shares in TiVo up 15 percent in afterhours trade.
The first payment of $51 million is due from AT&T Tuesday and will be followed by quarterly payments through June 2018, according to TiVo.
The payments will rise beyond the minimum amount if growth in AT&T's subscriber base exceeds certain pre-determined levels.
TiVo said it expects total fees payable to it from AT&T to significantly exceed the guaranteed minimum payment.
In return the companies have agreed to dismiss all pending litigation and enter a cross licensing agreement.
TiVo share rose to $10.25 in afterhours trade after closing in regular trading at $8.92.