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Shares of TiVo Inc. (TIVO: News ) surged more than 11% in after hours trading after the company reached a settlement of its patent dispute related to digital video recording technology with AT&T, Inc. (T). Under the terms of the settlement, AT&T agreed to pay TiVo an initial payment of $51 million, followed by recurring quarterly guaranteed payments through June 2018, totaling $164 million, which together yield minimum payments of $215 million. In addition, AT&T will pay incremental recurring per subscriber monthly license fees through July 2018 should AT&T’s DVR subscriber base exceed certain levels.

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