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Apple TV set could require per-unit royalties to Rovi

updated 01:35 pm EST, Wed February 1, 2012

Terms for program guide technology might change

An Apple TV set could require Apple to pay a higher amount of royalties to Rovi, says Piper Jaffray analyst Michael Olson. Rovi owns patents to related to interactive program guide technology, for which Apple is paying an annual license fee. The two companies signed a contract in September 2010.

Olson estimates that Rovi already gets about $8 to $10 million a year from Apple. He suggests, though, that if Apple needs Rovi patents for a full-sized TV, it may be forced to pay additional royalties on a per-unit basis, in the same way that some TV makers already do. Apple's current payments are fixed.

Other TV makers could take advantage of their connections to Rovi to try and compete with Apple, Olson notes. "Rovi already has deals in place for use of total guide components with Sony, Samsung, Sharp, Toshiba, Panasonic, and Vizio. We believe existing partners, as well as new customers, could choose to leverage Total Guide components more fully to quickly ramp an improved connected TV software platform to compete with an Apple Television," he writes.




by MacNN Staff

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Comments

  1. Paul Huang

    Joined: Dec 1969

    +3

    Buy that company

    and be done with it.

  1. testudo

    Joined: Dec 1969

    +2

    um....

    So now we're speculating on what royalties Apple will be paying when their speculated TV set comes out?

    And not only that, but somehow he's speculating that the tech apple will be using will be so far ahead of everyone else they'll need to catch up, but will be able to catch up quickly since they already have licenses for the patents.

    This all on the assumption all the other vendors will immediately rush out an build Apple-TV like TVs, because if Apple makes it, it must be what people will buy (without realizing, of course, the only reason they're buying it is because it's from apple, so the others will be ignored anyway).

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