×

TiVo Stock Jumps on Favorable Patent Decision in Comcast Case

TiVo shares shot up more than 17% Tuesday, following a preliminary initial ruling last Friday by the U.S. International Trade Commission that Comcast had violated two TiVo patents.

TiVo — formed by Rovi’s acquisition of the namesake DVR manufacturer last year — currently is engaged in federal litigation against Comcast separate from the ITC complaint. Rovi sued the cable giant and its set-top suppliers last year alleging they infringe 14 patents in the U.S. District Court for the Eastern District of Texas.

The ITC initial determination doesn’t necessarily have any impact on TiVo’s suit in the federal district court. However, B. Riley & Co. analyst Eric Wold wrote in a research note, “we believe this represents a positive step towards resolving the Comcast dispute, puts the power clearly in TiVo’s corner ahead of a possible [set-top box] injunction against Comcast and is likely to lead to a settlement/license from Comcast in order to avoid potential treble damages from an adverse District Court ruling.”

Comcast declined to comment.

TiVo shares traded as high as $19.30 per share Tuesday afternoon, up 17.7% over the previous closing price. The stock closed at $18.70 per share Tuesday (up 14% for the day).

“Although Comcast still has options to pursue in this dispute (e.g., appealing any final determination from the ITC and moving through the District Court case), this initial determination should pressure Comcast to settle and sign a license deal,” Wold wrote. The analyst maintains a “buy” rating on TiVo, with a price target of $31 per share on the stock.

In its complaint with the ITC, TiVo had alleged Comcast violated six patents total. The agency is expected to release more details in the next 30 days with a final determination in late September.

Separately, Hulu last week sued TiVo, seeking a judgment that it does not need to renew a patent licensing agreement the streaming provider entered into in with Rovi 2013. According to Hulu’s suit, none of the three TiVo-owned patents are currently applicable.

Both TiVo and Rovi have a long history of litigation and aggressive patent-licensing action. The combined company holds approximately 6,000 issued and pending patents covering a diverse range of technologies including interactive program guides, DVR functions and mobile device media processes.

Popular on Variety

More Digital

  • Netflix-logo-N-icon

    Netflix Is Testing Human-Curated 'Collections'

    Netflix, a company powered by the strategic use of data, relies on artificial intelligence to suggest new content that its streaming customers are likely to be interested in. Now it’s looking to potentially add a human touch: The company has launched a limited-scale test of “Collections,” a new feature that presents groups of movies and [...]

  • wolves in the walls emmy

    Neil Gaiman VR Experience 'Wolves in the Walls' Wins Primetime Emmy

    “Wolves in the Walls,” the virtual reality (VR) experience based on Neil Gaiman’s children’s book by the same name, has been awarded with a Primetime Emmy for outstanding innovation in interactive media. The experience has been produced by San Francisco-based immersive entertainment startup Fable, which puts a big effort on making the viewer a participating [...]

  • The Void San Francisco

    The Void Teams Up With Sony Pictures for New Location-Based VR Experience

    James Murdoch-backed virtual reality (VR) startup The Void has teamed up with Sony Pictures Virtual reality to produce a new location-based VR experience, according to Curtis Hickman, the startup’s chief creative officer. Hickman revealed the partnership in a conversation with Variety this week, during which he also outlined plans to bring more original IP to [...]

  • US President Donald J. Trump speaks

    Apple Stock Down 4.6% After Trump ‘Orders’ Companies to Leave China

    Apple’s share price was down around 4.6% Friday at the close of the market, to $202.64 per share, after President Trump took to Twitter to “order” U.S. companies to leave China. The slide came amid a market-wide sell-off, with the NASDAQ sliding 3%, and the Dow dropping 623 points. Trump’s edict was a response to [...]

  • Former head of CAA China Peter

    Peter Loehr to Spearhead Asia Expansion of Genies Avatar Venture (EXCLUSIVE)

    Peter Loehr, the former head of CAA in China, and seasoned music executive John Possman have been tapped by digital avatar company Genies to lead its expansion into Asia. The company’s proprietary avatar technology allows users to express ideas, thoughts and feelings in a different way from text, audio and video. Within the app and [...]

  • Tim Connolly - Quibi

    Quibi Head of Partnerships and Advertising Tim Connolly Departs

    Tim Connolly, the former Hulu exec who joined Quibi last year as head of partnerships and advertising, is leaving the mobile TV subscription startup founded by Jeffrey Katzenberg. Connolly’s exit comes eight months ahead of Quibi’s planned April 2020 debut. A Quibi rep declined to comment on his departure, which was first reported by Business [...]

More From Our Brands

Access exclusive content