(Reuters) - Video recorder pioneer TiVo Inc said it would receive $490 million after settling a patent lawsuit with Google Inc's Motorola Mobility, Cisco Systems Inc and Time Warner Cable Inc, days before the case was to go to trial.
But TiVo shares fell 20 percent in premarket trading as the settlement disappointed shareholders expecting a bigger payout.
The shares rose 8 percent on Thursday after Motorola Mobility said it reached an out-of-court settlement with TiVo. Motorola did not disclose details of the agreement.
Motorola had accused TiVo in February 2011 of infringing its patents for digital video recorders. TiVo filed a counterclaim in March last year.
TiVo will enter into patent licensing arrangements with Arris Group Inc, Cisco and Google as part of the settlement, TiVo said.
TiVo, which will recognize a portion of the payment as past damages during the current quarter and the remainder over time, said all pending litigation would be dismissed.
The company also said it would double its stock buyback plan to $200 million and extend it for two years until August 29, 2015.
The patent trial was scheduled to begin on Monday.
TiVo has turned to litigation to generate revenue from licensing fees as it struggles with competition from low-cost rivals.
It settled a patent litigation with Verizon Communications Inc for $250.4 million in September.
The case is in re Motorola Mobility Inc et al vs. TiVo Inc, case number 11-00053, U.S. District Court, Eastern District of Texas.
(Reporting by Neha Alawadhi and Sayantani Ghosh in Bangalore; Editing by Stephen Coates, Maju Samuel)
Source: http://news.yahoo.com/motorola-says-settlement-reached-tivo-over-patent-row-043500904.html
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