Pressure on Rovi as patents fail to come through
By Julian Clover
Rovi has said it expects a fall in revenues of around $20 million after it experienced delays in adding new patent licences to service operators in Europe and in the US around the TV Everywhere concept.
Revenues in the second quarter are expected to total $158 million, as opposed to the $179 million the company achieved in 2011.
“We don’t anticipate ultimately losing revenues as a result of these delays, and we continue to anticipate significant growth in our licensing business from 2011 to 2013,” said Tom Carson, President and CEO of Rovi Corporation. “However, in order to ensure the long-term protection of our key intellectual property, we did not sign certain new patent licensing agreements during the second quarter, as some expected licensees would not agree to acceptable terms.
Rovi is currently pursuing action on three counts against the Dutch operator Ziggo and last year saw an appeal against Virgin Media thrown out by the High Court.
The company says it prefers not to litigate and still expects to enter into the majority of its patent licenses without litigation.
It believes pending patent litigation matters must progress further before certain prospective customers will finalize arrangements on terms it finds acceptable.
Rovi is optimistic that terms will be reached either in 2012 or 2013 with the possibility of back payments being made.