Rovi Corp has just signed an agreement with Google Inc giving the technology giant access to its wide range of patents for its Fiber Pay-TV service.
Rovi Corp has just signed an agreement with Google Inc permitting the technology giant to use its interactive program guide patent portfolio for set-top boxes, sending its shares up 4 percent in premarket trade. Rovi say this is for Google Inc.’s new Fiber Pay-TV service.
The agreement also allows Rovi's patents to be used for online and mobile platforms. Rovi Executive Vice President Samir Armaly said of this, "Our agreement with Google continues the growth and relevance of our patent licensing program for not only traditional platforms, but also new media experiences across multiple screens.”
Rovi's software is used in home entertainment devices to play various digital media formats such as DivX.
Last week, Google said it will begin offering high-speed Internet and TV service in Kansas City later this year, thrusting the Web-search giant into competition with telecom companies. Google claims its fibre Internet speed is around 100 times faster than speeds at most American homes.
Shares of Santa Clara, California-based Rovi rose 59 cents to a high of $14 in trading this week. The stock closed at $13.41 on the Nasdaq on Wednesday. Rovi may not be a household name, but the publicly traded company owns over 5,100 patents related to digital entertainment.
Before 2009, Rovi was known as Macrovision, a company that quickly became infamous in the early 2000s because of its widely used DVD copy protection technology.
Last year, Google made the headlines by buying Motorola Mobility Holdings Inc for $12.5 billion last year and got access to its hardware business, which builds mobile phones and television set-top boxes.