Electronic program guide technology provider Rovi disclosed through a regulatory filing that it has entered into a multi-year licensing agreement with LG Electronics for the use of its patent portfolio in “all LG products.” Deal terms were not provided.
According to the filing, the new licensing agreement “includes the dismissal of all current lawsuits,” which presumably includes this complaint for patent infringement filed by Rovi against LG in May 2012 in the US District Court for Delaware.
The catalyst for the new arrangement between Rovi and LG may be the fact that LG recently won a patent infringement case filed by Rovi in German courts.
According to Korea Times article, Rovi filed for an injunction with the German court against LG Electronics in April 2012, to ban sales of its televisions, claiming LG has infringed on technology patents for its products. The lawsuit came as LG Electronics rejected Rovi’s request to pay license fees for its patent. LG Electronics argued that the patent claimed by Rovi Corporation is irrelevant to its products, adding the U.S. firm’s stance on the scope of patent is “too broad.”
German Courts ruled in favor of LG in December 2012.
Re-Affirms Business Outlook
Rovi, which also owns Divx and codec provider MainConcept, used the filing to re-affirm its business outlook for 2013, saying that “while the settlement with LG was successfully achieved earlier in the company’s fiscal year 2013 than previously anticipated by the company, the company continues to expect the timing of adjusted pro forma revenue to be approximately 47% and 53% in the first and second halves of 2013, respectively.”
Rovi says it expects its adjusted pro-forma revenue for 2013 to be between $630m and $660m, and adjusted pro-forma income per common share to be between $1.90 and $2.20, excluding discontinued operations. The company also said its revenue expectations for the fiscal first quarter, ending March 31, 2013, are unchanged from previously issued guidance.
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Related Content:
Rovi SEC Filing: Discloses LG Patent Licensing Agreement, and Dismissal of all Current Lawsuits
Korea Times Article: LG defeats patent infringement claims in German court
Rovi Complaint for Patent Infringement against LG Electronics, Delaware District Court May 2012
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