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Microsoft, TiVo drop suits against each other

- Associated Press - Thursday, March 22, 2012

Digital video recorder pioneer TiVo Inc. said Thursday that it had reached an agreement with software maker Microsoft Corp. for the companies to drop lawsuits against each other following TiVo's settlement with AT&T Inc.

Microsoft had sued TiVo in 2010, alleging that the Alviso, Calif.-based company violated its patents related to an on-screen TV guide. TiVo later countersued.

Microsoft software is used in set-top boxes provided by AT&T to subscribers of its U-verse TV package and the suit was a way for Microsoft to support AT&T's own legal battles with TiVo.

But AT&T agreed to settle with TiVo in January by paying at least $215 million through 2018. That made Microsoft's supporting suit less relevant.

TiVo said that dropping the litigation did not mean it is granting any patent rights to Microsoft.

TiVo shares rose 14 cents, or 1.2 percent, to $11.70 in afternoon trading Thursday. Shares of Seattle-based Microsoft were up 9 cents at $32.

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