Recorded TV innovator TiVo has decided to settle its outstanding litigation with Google and Cisco centered on their distribution of infringing digital video recorder (DVR) technologies to Time Warner Cable to include in its set-top boxes. As part of the deal, Google's Motorola Mobility unit and Cisco will enter into a patent licensing deal with TiVo after paying a collective settlement fee of $490 million.

"We are pleased to reach an agreement that brings our pending litigation to an end and further underscores the significant value our distribution partners derive from TiVo's technological innovation and our shareholders derive from our investments in protecting TiVo's intellectual property," company president and CEO Tom Rogers explained.

According to Bloomberg, the latest settlement raises the total value of awards and settlement related to proprietary TiVo technologies to approximately $1.6 billion. However, industry analysts were projecting final damages as high as $940 million had TiVo taken Google and Cisco to trial.

As a result, TiVo may have to reignite its core business more quickly to retain and attract investors. The firm certainly has a bit more liquidity in its financial portfolio following this patent win, but it has been consistently losing money as consumers show a distinct preference for leasing rather than buying DVR technologies.