TiVo v EchoStar: The Morning After

Here we go again with the dueling press releases…

TiVo says: “TiVo is pleased that Judge Folsom has granted a permanent injunction against EchoStar’s DVR products along with supplemental damages and interest. This decision recognizes that our intellectual property is valuable and will ensure that moving forward EchoStar will be unable to use our patented technology without our authorization.

“TiVo is built on a strong foundation of innovative technology and intellectual property. Beyond the U.S. Time Warp patent, we now hold more than 86 patents in our worldwide patent portfolio and have more than 138 patent applications pending. TiVo has a long list of licensees in the consumer electronics, cable and satellite markets, and we will continue to license our technology under appropriate circumstances and arrangements. We will also continue to vigorously defend our intellectual property for the benefit of our licensees and shareholders.”

EchoStar says: This morning, EchoStar will ask the Federal Circuit Court of Appeals to block an injunction issued by a Texas Court yesterday, while EchoStar appeals that decision. The Texas judge did not grant treble damages or attorney fees to Tivo, but he did let stand the jury decision that EchoStar digital video recorders infringe a Tivo patent, and immediately enjoined continued sale of allegedly infringing DVRs. The injunction would also require that allegedly infringing DVRs in consumer homes be shut off within 30 days.

We are pleased the Court concluded EchoStar did not act in bad faith and did not copy Tivo’s technology, and we intend to continue our vigorous defense of this case. We believe that, for a number of reasons, the Texas Court should be reversed in all other respects on appeal. We also continue to work on modifications to our new DVRs, and to our DVRs in the field, intended to avoid future infringement. Existing DISH Network customers with DVRs are not immediately impacted by these recent developments, and we will keep consumers informed as events develop. We hope to have additional information for our customers very soon.