OpenTV Settles Patent Suit Against Liberate; Gets $1.5 Million

Authored by Mark Hefflinger on November 9, 2007 - 8:13am.

San Francisco - OpenTV (NASD: OPTV), a provider of interactive TV software and services, announced on Friday that it has settled its lawsuit against former competitor Liberate Technologies, with Liberate admitting that it infringed two OpenTV patents.

Under the terms, the court permanently enjoined Liberate from infringing OpenTV's patents, while Liberate dismissed all of its counterclaims against OpenTV.

San Francisco-based OpenTV originally filed suit in 2002 against Liberate, which sold its assets in 2005 to TVWorks, a joint venture between cable TV providers Comcast (NASD: CMCSA) and Cox.

OpenTV stated that TVWorks has entered into an agreement to pay OpenTV $1.5 million in exchange for the company's release of TVWorks from past liability.

OpenTV added that it did not sign a patent licensing deal with TVWorks, and reserves any rights it may have against the company based on its activities since its acquisition of Liberate.

"We are pleased to reach a favorable settlement that acknowledges Liberate's infringement of two of our key patents relating to the delivery of interactive television," said Mark Beariault, OpenTV's SVP and general counsel.