In a recent announcement, Rovi corporations confirmed that they have signed a new agreement with Dish Network. This ten-year patent license agreement will allow Dish Network to continue using conversational Rovi services platforms and other Rovi products.
The financial details of this deal are still kept hidden by Dish Network and Rovi corporations. However, Dish Network will have to pay Rovi from April 5, 2016 on a monthly basis per subscriber fee, as per the contract. The two companies also stated that this deal is tied with Rovi’s acquisition of TiVo. This part of the deal will be effective only from September 7, 2016 as per the reports.
Tom Carson, President and CEO of Rovi, said, “Our renewal with DISH further validates the long-term value and relevance of our intellectual property portfolio, reinforcing the importance of Rovi’s intellectual property (IP) with both traditional and next-generation pay-TV service providers. With this most recent renewal, Rovi now has nine of the top 10 U.S. pay-TV operators under license, with significant recent momentum, as seven of those agreements have been signed over the last seven quarters.”
Dish has also promised Rovi Corporations that they will not sue TiVo, under existing patent contract expires, and also ensured that they will release TiVo’s past products as per the 8-K filling. However, Dish has also asked TiVo for some of their products and a cash payment of $60 million over the next year.
The filling held by the major companies also stated that EchoStar Corp and Rovi “have not entered into a separate license agreement for their respective patents at this time.” EchoStar Corp is major set-top and technology spin-off of the Dish Network. The filling also added that TiVo should settle the final payment in July 2017.
TiVo was able to sign a $500 million agreement with EchoStar and Dish Network through a DVR patent. Rovi Corporations has also done well with its partnership with Dish. They were able to sign agreement with nine out of 10 top satellite providers during this partnership. Besides, it should be noted that earlier, Rovi’s services and products helped Dish Network to introduce the voice remote, which is compatible for both 4K Joey boxes and Hopper 3 DVR.