Verizon Communications Inc. agreed to pay more than $260 million to a California company to end a patent-infringement lawsuit that targeted its video-on-demand feature for FiOS TV.
Verizon and ActiveVideo Networks Inc. also agreed to a patent cross-license, ActiveVideo said in a statement. ActiveVideo didn't say how much Verizon is paying in total, except that it involves an unspecified sum in addition to $260 million earlier ordered by a federal court.
The agreement was struck after a U.S. appeals court in August upheld a jury verdict that New York-based Verizon lost and an order that Verizon pay ActiveVideo $2.74 per month for each FiOS-TV subscriber. The appeals court overturned a ruling that would have forced Verizon to stop providing the service to its customers.
"In the end our technology and its value have been recognized," said Jeff Miller, chief executive officer of San Jose, California-based ActiveVideo.