Tivo Wins Out Over Dish Network

Dish Network may finally have to pay up after losing a federal court decision today.  The Court of Appeals ruled that Dish Network, formerly Echostar Communications Inc, infringed on Tivo’s patent on DVR technology.

Interestingly, the court ruled partially in favor of Dish Network, in that it overturned a lower court’s ruling that Dish had infringed on the hardware elements of the patent.  But the court ruled that the violation of the software elements was still sufficient enough to uphold the $89.6 million in damages previously awarded to Tivo by the lower court.

The news sent Tivo’s stock up nearly 29% by the close of trading today.  Shares of Tivo closed at $8.77, up $1.97.

The suit originated in 2004 when Tivo claimed Dish Network infringed on the company’s digital video recorder technology.  DishDVR technology allows viewers to record one channel while watching another, as well as pause and rewind live TV, and skip through commercials on previously recorded material. 

Dish Network remained defiant after the ruling, claiming it would not affect their DVR subscribers because they had already moved their base to “next generation” DVR software that does not infringe on Tivo’s patents.  Dish Network also said they plan to appeal the financial judgment.