Briefcase

AT&T to pay $215 million to settle TiVo patent suit

LOS ANGELES – AT&T Inc. will pay TiVo Inc. at least $215 million through June 2018, becoming the latest TV signal provider to settle a patent lawsuit involving the digital video recorder pioneer.

Per subscriber, this payout will be much larger than a similar $500 million settlement TiVo reached in May with satellite TV company Dish Network Corp. and its set-top box provider, EchoStar Corp.

Dish had about 13.9 million subscribers at the end of September, while AT&T’s U-verse had just 3.6 million. That makes AT&T’s settlement worth at least $59.72 per subscriber, while Dish’s cost $35.97 per subscriber.

TiVo CEO Tom Rogers said the bigger settlement resulted in part from the fact that AT&T heavily marketed its digital video recorders as a key difference between itself and bigger cable TV providers.

“From the get-go, their offering was primarily based on DVR,” Rogers said. He added that TiVo is pursuing another similar case against Verizon over its FiOS service. He said marketing for FiOS also emphasizes its DVRs. Verizon has about 4 million video subscribers.

TiVo shares jumped $1.15, or 12.9 percent, to $10.07 after hours on the news, while AT&T shares rose 21 cents to $30.59 after hours. TiVo’s stock had fallen 5 cents in regular trading Tuesday as the markets rose overall.

The first $51 million was due in a lump sum on Tuesday, with another $20 million due in the first year and quarterly payments after that.

Associated Press

Eastman Kodak gets NYSE delisting warning

ROCHESTER, N.Y. – Eastman Kodak Co. has been warned by the New York Stock Exchange that its stock will be delisted if the price remains below $1 per share for the next six months, the ailing photography company said Tuesday.

The exchange put the company on notice after its shares’ average closing price was below $1 for 30 consecutive trading days.

Under NYSE rules, the Rochester, N.Y., company has six months to regain compliance with the minimum share price requirement. That means its stock must have a closing price of at least $1 a share on the last trading day of any calendar month during the period and must maintain that average over the previous 30 trading days or on the last day of the six months.

Kodak shares, which traded as high as $5.85 in the past year, closed at 65 cents Tuesday, up a penny, and slid nearly 4 percent in after-hours trading. The stock has not closed above $1 since Dec. 2. Shares have slid precipitously since the fall as Kodak, which has posted losses in six of the last seven years, seeks to avert a cash crunch by selling its digital-imaging patent portfolio.

Associated Press

Honda owner sues over undelivered 50 mpg

TORRANCE, Calif. – A woman who expected her Civic Hybrid to be her dream car wants Honda to pay for not delivering the 50 mpg it promised.

But rather than joining other owners in a class-action lawsuit, Heather Peters is going solo against the automaker in small-claims court, an unusual move that could offer a bigger payout. And if successful, it could open the door to a flood of similar lawsuits.

Peters, a former lawyer, says that as her vehicle’s battery deteriorated, it got only 30 mpg.

When Honda ignored her complaints, she filed legal papers seeking reimbursement for her trouble and the extra money she spent on gas. The suit could cost the company up to $10,000.

If other Civic owners follow her lead, she estimates Honda could be forced to pay as much as $2 billion in damages. No high-priced lawyers are involved, and the process is streamlined.

“I would not be surprised if she won,” said Richard Cupp Jr., who teaches product-liability law at Pepperdine University. “The judge will have a lot of discretion, and the evidentiary standards are relaxed in small-claims court.”

Associated Press