The Google/Arris Motorola Home swap was a big gain on both sides, with Google scoring a large stake in the company and Arris landing a significant quantity of patents and licenses. Many had questions regarding the TiVo lawsuit issue, however, wondering what went on behind closed doors that would prompt Arris to take on the burden of potentially astronomical fees in damages for infringement. As it turns out, Arris won't be dealing with most of the financial burden from the TiVo debacle, with Google capping the company's liability.
TiVo has claimed that Motorola is responsible for what is likely billions of dollars in damages due to "massive production" of DVRs that infringe on its products. Says the company, the quantity of Motorola's infringing devices are beyond the number of DVRs involved in past infringement cases. TiVo is attempting to block sales of Motorola's infringing products.
It is easy to see why most companies, under the threat of a lawsuit of this magnitude, would shy aware from acquisition. Arris didn't agree to the Motorola deal until Google agreed to limit the company's liability in the legal issue, how ever it may turn out. Although the company's CEO Bob Stanzione declined commenting on the specific numbers, he stated that Arris's liability in the event that TiVo wins the lawsuit will be a "very small number."
"It’s not something you have to worry about in terms of the financial impact on Arris. Google has taken that risk off the table for Arris." Google will also be dealing with the legal aspects of the lawsuit. Stanzione is likewise unconcerned about TiVo successfully getting Motorola's DVRs pulled from the market.
[via Tech Crunch]