First AOL and Microsoft, now TiVo and Gemstar-TV Guide International are dismissing litigation and making nice:

The two companies announced Monday that they have dismissed a lawsuit Gemstar filed against TiVo in early 2000, which alleged that TiVo's digital video recorder service infringed on Gemstar's patent for electronic programming guide technology. Gemstar was seeking an injunction and unspecified monetary damages.

TiVo's DVR service lets consumers pause live television programming, store shows on a hard drive and preprogram the service to record future shows. Gemstar's EPG technology lets viewers peruse a digital version of television listings, with show titles, broadcast times and other information.

Under the new arrangement, TiVo was granted a license to use Gemstar's EPG patent and Gemstar will be able to provide TV Guide-branded content to the TiVo service. The companies said TiVo will not have to make any changes to its current electronic program guide. [CNET]