Electronic program guide specialist Rovi Corporation (NASDAQ:ROVI) appears to have made peace with the DISH Network and EchoStar, and picked a fight with Comcast Corporation.
Rovi, DISH Network and EchoStar Corporation (NASDAQ:SATS) have agreed to a standstill, during which the parties have agreed not to pursue litigation against each other in order to allow discussions to continue with respect to the possible extension of their license agreement.
Meanwhile, Rovi has sued media company Comcast (NASDAQ:CMCSA), alleging patent infringement.
“For over a decade, Comcast built its business using Rovi’s patented technology, which it licensed for a fixed term. Comcast’s decision to continue using Rovi’s pioneering technology as an unlicensed infringer is simply intolerable,” claimed Tom Carson, president and chief executive officer of Rovi.
“After numerous attempts at negotiations, Rovi was left with no choice but to defend its intellectual property from unlicensed use. Rovi has taken this action to protect not only its patent portfolio, but also its stakeholders and licensees. While we are disappointed that Comcast remains unlicensed, we believe it needs a license to offer many of its personalized discovery features to its customers,” Carson said.
Rovi asserts infringement by Comcast, together with its set-top box suppliers, of 14 US patents that together deliver the most important features to Comcast customers. These features include, for example, the way that Comcast implements remote recording, AnyRoom DVR and X1 search, Rovi said.
Rovi seeks both an injunction barring continued infringement and damages to compensate it for the harm inflicted by that infringement, it told investors.
The market was not best pleased by the outbreak of hostilities and marked down Rovi shares by around 15%.
On the plus side, Rovi had made pRovision in its 2016 earnings guidance for legal expenses and the absence of any licensing or advertising revenues from Comcast after March 31, 2016, so its forecasts for the current year remain unchanged.