2 Big Gainers: Rambus Inc.(NASDAQ:RMBS) & TiVo Inc.(NASDAQ:TIVO)
Rambus rises on patent news
Rambus Inc.(NASDAQ:RMBS) Inc said that it has won a positive result in a patent case with SK Hynix Inc. The technology company’s shares spiked 14 percent in pre-market trading on Monday. The Sunnyvale, California based company cited a judge in the Northern District of California as saying that the company’s patents with indeed infringed. The company has said that it is entitled to receive royalty payments at reasonable rates from Hynix for infringements made in the past.
Verizon-TiVo patent litigation settlement
TiVo Inc.(NASDAQ:TIVO) has said that it will receive at least $250.4 million from Verizon Communications Inc as part of a patent litigation settlement. This statement propelled the video recorder pioneer’s shares 5 percent upwards.
This is not the first time TiVo has entered into such deals. The company had reached a similar settlement with AT&T in January, in which the latter had agreed to pay $215 million. In May 2011, it had also entered into such agreements with Dish Network Corp and EchoStar Corp.
Verizon will repay $100 million in cash initially. It will then make payments totaling to $150.4 million through July 2018. At the end of this period, Verizon will start paying license fees to TiVo every month.
The two companies have also entered into some more agreements including dismissal of all pending litigations between them. Also, if the two companies pursued any commercial initiatives, Verizon would be given a credit of an amount up to $29.4 million of the payment made.
TiVo has a pending suit with Time Warner Cable connected with the Motorola litigation and analysts believe that the settlement with Verizon strengthens the company’s position further. Both Time Warner Cable and Motorola Mobility did not make any comments on this development.
TiVo shares were trading at $9.96, up 4.2 percent on Monday morning. On the other hand, shares of Verizon were down 0.4 percent and were trading at $45.52.
